Document:

EXECUTION COPY

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.,

                                    Depositor

                           DLJ MORTGAGE CAPITAL, INC.,

                                     Seller

                          WILSHIRE CREDIT CORPORATION,

                                    Servicer

                                       and

                              JPMORGAN CHASE BANK,

                                     Trustee

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                         POOLING AND SERVICING AGREEMENT
                           Dated as of October 1, 2004

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

                    HOME EQUITY MORTGAGE TRUST SERIES 2004-5
          HOME EQUITY MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2004-5

<PAGE>

<TABLE>
                                                  TABLE OF CONTENTS

                                                                                                               Page
                                                                                                               ----
<S>                                                                                                              <C>
ARTICLE I DEFINITIONS.............................................................................................1
   SECTION 1.01          Definitions..............................................................................1
   SECTION 1.02          Interest Calculations...................................................................41
   SECTION 1.03          Allocation of Certain Interest Shortfalls...............................................41
ARTICLE II CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES..........................................42
   SECTION 2.01          Conveyance of Mortgage Loans............................................................42
   SECTION 2.02          Representations and Warranties of the Seller and Servicer...............................52
   SECTION 2.03          Representations and Warranties of the Depositor as to the Mortgage Loans................54
   SECTION 2.04          Delivery of Opinion of Counsel in Connection with Substitutions.........................54
   SECTION 2.05          Execution and Delivery of Certificates..................................................55
   SECTION 2.06          REMIC Matters...........................................................................55
   SECTION 2.07          Covenants of the Servicer...............................................................55
   SECTION 2.08          Conveyance of REMIC Regular Interests and Acceptance of REMIC 1, REMIC 2 and REMIC 3
                         by the Trustee; Issuance of Certificates................................................56
ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS.......................................................58
   SECTION 3.01          Servicer to Service Mortgage Loans......................................................58
   SECTION 3.02          Subservicing; Enforcement of the Obligations of Subservicers............................60
   SECTION 3.03          [Reserved]..............................................................................62
   SECTION 3.04          Trustee to Act as Servicer..............................................................62
   SECTION 3.05          Collection of Mortgage Loans; Collection Accounts; Certificate Account; Pre-Funding
                         Account; Capitalized Interest Account...................................................62
   SECTION 3.06          Establishment of and Deposits to Escrow Accounts; Permitted Withdrawals from Escrow
                         Accounts; Payments of Taxes, Insurance and Other Charges................................66
   SECTION 3.07          Access to Certain Documentation and Information Regarding the Mortgage Loans;
                         Inspections.............................................................................68
   SECTION 3.08          Permitted Withdrawals from the Collection Accounts and Certificate Account..............68
   SECTION 3.09          Maintenance of Hazard Insurance and Mortgage Impairment Insurance; Claims; Restoration
                         of Mortgaged Property...................................................................70
   SECTION 3.10          Enforcement of Due-on-Sale Clauses; Assumption Agreements...............................71
   SECTION 3.11          Realization Upon Defaulted Mortgage Loans; Repurchase of Certain Mortgage Loans.........72
   SECTION 3.12          Trustee to Cooperate; Release of Mortgage Files.........................................79
   SECTION 3.13          Documents, Records and Funds in Possession of the Servicer to be Held for the Trustee...80
   SECTION 3.14          Servicing Fee...........................................................................80
   SECTION 3.15          Access to Certain Documentation.........................................................81
   SECTION 3.16          Annual Statement as to Compliance.......................................................81
</TABLE>

                                       i
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<TABLE>
<S>                                                                                                              <C>
   SECTION 3.17          Annual Independent Public Accountants' Servicing Statement; Financial Statements........81
   SECTION 3.18          Maintenance of Fidelity Bond and Errors and Omissions Insurance.........................82
   SECTION 3.19          Duties of the Credit Risk Manager.......................................................83
   SECTION 3.20          Limitation Upon Liability of the Credit Risk Manager....................................83
   SECTION 3.21          Advance Facility........................................................................84
   SECTION 3.22          Maintenance of Credit Insurance Policy..................................................86
ARTICLE IV DISTRIBUTIONS AND ADVANCES BY THE SERVICER............................................................87
   SECTION 4.01          Advances by the Servicer................................................................87
   SECTION 4.02          Priorities of Distribution..............................................................88
   SECTION 4.03          [Reserved]..............................................................................92
   SECTION 4.04          [Reserved]..............................................................................92
   SECTION 4.05          Allocation of Realized Losses...........................................................92
   SECTION 4.06          Monthly Statements to Certificateholders................................................93
   SECTION 4.07          Distributions on the REMIC 1 Regular Interests and REMIC 2 Regular Interests............94
   SECTION 4.08          [Reserved]..............................................................................96
   SECTION 4.09          Prepayment Charges......................................................................96
   SECTION 4.10          Servicer to Cooperate...................................................................97
ARTICLE V THE CERTIFICATES.......................................................................................98
   SECTION 5.01          The Certificates........................................................................98
   SECTION 5.02           Certificate Register; Registration of Transfer and Exchange of Certificates............99
   SECTION 5.03          Mutilated, Destroyed, Lost or Stolen Certificates......................................104
   SECTION 5.04          Persons Deemed Owners..................................................................104
   SECTION 5.05          Access to List of Certificateholders' Names and Addresses..............................104
   SECTION 5.06          Maintenance of Office or Agency........................................................105
ARTICLE VI THE DEPOSITOR, THE SELLER AND THE SERVICER...........................................................106
   SECTION 6.01          Respective Liabilities of the Depositor, the Sellers and the Servicer..................106
   SECTION 6.02          Merger or Consolidation of the Depositor, the Seller or the Servicer...................106
   SECTION 6.03          Limitation on Liability of the Depositor, the Seller, the Servicer and Others..........106
   SECTION 6.04          Limitation on Resignation of the Servicer..............................................107
ARTICLE VII DEFAULT.............................................................................................108
   SECTION 7.01          Events of Default......................................................................108
   SECTION 7.02          Trustee to Act; Appointment of Successor...............................................110
   SECTION 7.03          Notification to Certificateholders.....................................................112
ARTICLE VIII CONCERNING THE TRUSTEE.............................................................................113
   SECTION 8.01          Duties of the Trustee..................................................................113
   SECTION 8.02          Certain Matters Affecting the Trustee..................................................114
   SECTION 8.03          Trustee Not Liable for Certificates or Mortgage Loans..................................115
   SECTION 8.04          Trustee May Own Certificates...........................................................115
   SECTION 8.05          Trustee's Fees and Expenses............................................................115
   SECTION 8.06          Eligibility Requirements for the Trustee and Custodian.................................116
   SECTION 8.07          Resignation and Removal of the Trustee.................................................116
   SECTION 8.08          Successor Trustee......................................................................117
   SECTION 8.09          Merger or Consolidation of the Trustee.................................................118
</TABLE>

                                        ii
<PAGE>

<TABLE>
<S>                                                                                                           <C>
   SECTION 8.10          Appointment of Co-Trustee or Separate Trustee..........................................118
   SECTION 8.11          Tax Matters............................................................................119
   SECTION 8.12          Commission Reporting...................................................................121
ARTICLE IX TERMINATION..........................................................................................124
   SECTION 9.01          Termination upon Liquidation or Purchase of the Mortgage Loans.........................124
   SECTION 9.02          Final Distribution on the Certificates.................................................125
   SECTION 9.03          Additional Termination Requirements....................................................126
ARTICLE X MISCELLANEOUS PROVISIONS..............................................................................128
   SECTION 10.01          Amendment.............................................................................128
   SECTION 10.02          Recordation of Agreement; Counterparts................................................129
   SECTION 10.03          Governing Law.........................................................................130
   SECTION 10.04          [Reserved]............................................................................130
   SECTION 10.05          Notices...............................................................................130
   SECTION 10.06          Severability of Provisions............................................................131
   SECTION 10.07          Assignment............................................................................131
   SECTION 10.08          Limitation on Rights of Certificateholders............................................131
   SECTION 10.09          Certificates Nonassessable and Fully Paid.............................................132
   SECTION 10.10          Non-Solicitation......................................................................132

EXHIBITS
EXHIBIT A.            Form of Class A Certificates..............................................................A-1
EXHIBIT B.            Form of Subordinate Certificate...........................................................B-1
EXHIBIT C.            Form of Residual Certificate..............................................................C-1
EXHIBIT D.            Form of Notional Amount Certificate.......................................................D-1
EXHIBIT E.            Form of Class P Certificate...............................................................E-1
EXHIBIT F.            Form of Reverse Certificates..............................................................F-1
EXHIBIT G.            Form of Initial Certification of Custodian................................................G-1
EXHIBIT H.            Form of Final Certification of Custodian..................................................H-1
EXHIBIT I.            Transfer Affidavit........................................................................I-1
EXHIBIT J.            Form of Transferor Certificate............................................................J-1
EXHIBIT K.            Form of Investment Letter (Non-Rule 144A).................................................K-1
EXHIBIT L.            Form of Rule 144A Letter..................................................................L-1
EXHIBIT M.            Request for Release.......................................................................M-1
EXHIBIT N.            Form of Subsequent Transfer Agreement.....................................................N-1
EXHIBIT O-1.          Form of Collection Account Certification................................................O-1-1
EXHIBIT O-2.          Form of Collection Account Letter Agreement.............................................O-2-1
EXHIBIT P-1.          Form of Escrow Account Certification ...................................................P-1-1
EXHIBIT P-2.          Form of Escrow Account Letter Agreement.................................................P-2-1
EXHIBIT Q.            [Reserved] ...............................................................................Q-1
EXHIBIT R.            Form of Custodial Agreement...............................................................R-1
EXHIBIT S.            [Reserved]................................................................................S-1
EXHIBIT T.            [Reserved]................................................................................T-1
EXHIBIT U.            Charged Off Loan Data Report..............................................................U-1
EXHIBIT V.            Form of Monthly Statement to Certificateholders...........................................V-1
</TABLE>

                                       iii
<PAGE>

<TABLE>
<S>                                                                                                           <C>
EXHIBIT W.            Form of Depositor Certification...........................................................W-1
EXHIBIT X.            Form of Trustee Certification.............................................................X-1
EXHIBIT Y.            Form of Servicer Certification............................................................Y-1
EXHIBIT Z.            Information to be Provided by Servicer to Trustee.........................................Z-1
EXHIBIT AA            Form of Limited Power of Attorney........................................................AA-1
EXHIBIT BB.           Credit Insurance Policy..................................................................BB-1
SCHEDULE I            Mortgage Loan Schedule....................................................................I-1
SCHEDULE II           Seller's Representations and Warranties..................................................II-1
SCHEDULE III          Wilshire Representations and Warranties.................................................III-1
SCHEDULE IV           Representations and Warranties for the Mortgage Loans....................................IV-1
</TABLE>

                                        iv
<PAGE>

            THIS POOLING AND SERVICING AGREEMENT, dated as of October 1, 2004,
among CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP., a Delaware
corporation, as depositor (the "Depositor"), DLJ MORTGAGE CAPITAL, INC., a
Delaware corporation, as Seller (the "Seller"), WILSHIRE CREDIT CORPORATION, a
Nevada corporation, as servicer (the "Servicer" or "Wilshire") and JPMORGAN
CHASE BANK, a New York banking corporation, as trustee (the "Trustee").

                                 WITNESSETH THAT

            In consideration of the mutual agreements herein contained, the
parties hereto agree as follows:

                              PRELIMINARY STATEMENT

            The Depositor 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 twelve
classes of certificates, designated as (i) the Class A-1 Certificates, (ii) the
Class A-2 Certificates, (iii) the Class M-1 Certificates, (iv) the Class M-2
Certificates, (v) the Class B-1 Certificates, (vi) the Class B-2 Certificates,
(vii) the Class B-3 Certificates, (viii) the Class P Certificates, (ix) the
Class X-1 Certificates, (x) the Class X-2 Certificates, (xii) the Class A-R
Certificates and (xiii) the Class A-RL Certificates.

                                     REMIC 1

            As provided herein, the Trustee will make an election to treat the
segregated pool of assets consisting of the Mortgage Loans and certain other
related assets subject to this Agreement (exclusive of the Pre-Funding Account,
the Capitalized Interest Account and the Subsequent Mortgage Loan Interest) as a
real estate mortgage investment conduit (a "REMIC") for federal income tax
purposes, and such segregated pool of assets will be designated as "REMIC 1."
The Class A-RL Certificates will represent the sole class of "residual
interests" in REMIC 1 for purposes of the REMIC Provisions (as defined herein)
under federal income tax law. The following table irrevocably sets forth the
designation, the Uncertificated REMIC 1 Pass-Through Rate, the initial
Uncertificated Principal Balance. None of the REMIC 1 Regular Interests will be
certificated. The latest possible maturity date (determined solely for purposes
of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii)) of each of the
REMIC 1 Regular Interests will be the Latest Possible Maturity Date as defined
herein.

                        Uncertificated REMIC 1      Initial Uncertificated
   Designation             Pass-Through Rate               Balance
  ----------------   ----------------------------  ------------------------
      LTI-1                   Variable(1)             $ 276,822,172.16
     LTI-PF                   Variable(1)             $  33,177,827.84
      LTI-P                   Variable(1)             $         100.00
      LTI-R                   Variable(1)             $         100.00
-------------------
(1)   Calculated as provided in the definition of Uncertificated REMIC 1
      Pass-Through Rate.

                                       1
<PAGE>

                                     REMIC 2

            As provided herein, an election will be made 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 under
federal income tax law (the "Class R-2 Interest"). The following table
irrevocably sets forth the designation, Uncertificated REMIC 2 Pass-Through Rate
and initial Principal Balance for each of the "regular interests" in REMIC 2
(the "REMIC 2 Regular Interests"). None of the REMIC 2 Regular Interests will be
certificated. The latest possible maturity date (determined solely for purposes
of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii)) of each of the
REMIC 2 Regular Interests will be the Latest Possible Maturity Date as defined
herein.

                       Uncertificated REMIC 2    Initial Uncertificated
    Designation           Pass-Through Rate         Principal Balance
   --------------     ------------------------   ------------------------
      MTI-AA                 Variable(1)            $ 303,800,000.00
      MTI-A-1                Variable(1)            $   2,320,000.00
      MTI-A-2                Variable(1)            $     121,250.00
      MTI-M-1                Variable(1)            $     251,100.00
      MTI-M-2                Variable(1)            $     207,700.00
      MTI-B-1                Variable(1)            $     100,750.00
      MTI-B-2                Variable(1)            $      49,600.00
      MTI-B-3                Variable(1)            $      49,600.00
      MTI-ZZ                 Variable(1)            $   3,100,000.00
       MTI-P                 Variable(1)            $         100.00
       MTI-R                 Variable(1)            $         100.00
-------------------
(1)   Calculated as provided in the definition of Uncertificated REMIC 2
      Pass-Through Rate.

                                     REMIC 3

            As provided herein, an election will be made 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 under
federal income tax law (the "Class R-3 Interest"). The following table
irrevocably sets forth the designation, Pass-Through Rate, aggregate Initial
Certificate Principal

                                       2
<PAGE>

Balance and minimum denominations for each Class of Certificates comprising the
interests representing "regular interests" in REMIC 3, and the Class A-R
Certificates, Class A-RL Certificates and Class X-2 Certificates which are not
"regular interests" in REMIC 3. The latest possible maturity date (determined
solely for purposes of satisfying Treasury regulation Section
1.860G-1(a)(4)(iii)) of each of the Regular Certificates will be the Latest
Possible Maturity Date as defined herein.

<TABLE>
<CAPTION>
 =============================================================================================================
                                                                                       Integral Multiples in
                Class Certificate Balance  Pass-Through Rate    Minimum Denomination     Excess of Minimum
 -------------------------------------------------------------------------------------------------------------
<S>                  <C>                    <C>                  <C>                            <C>
 Class A-1           $ 232,000,000.00        Adjustable(1)       $           25,000             $1
 -------------------------------------------------------------------------------------------------------------
 Class A-2           $  12,125,000.00        Adjustable(1)       $           25,000             $1
 -------------------------------------------------------------------------------------------------------------
 Class P             $         100.00         Variable(2)        $              100             N/A
 -------------------------------------------------------------------------------------------------------------
 Class A-R           $         100.00         Variable(2)        $              100             N/A
 -------------------------------------------------------------------------------------------------------------
 Class A-RL          $         100.00         Variable(2)        $              100             N/A
 -------------------------------------------------------------------------------------------------------------
 Class M-1           $  25,110,000.00        Adjustable(1)       $           25,000             $1
 -------------------------------------------------------------------------------------------------------------
 Class M-2           $  20,770,000.00        Adjustable(1)       $           25,000             $1
 -------------------------------------------------------------------------------------------------------------
 Class B-1           $  10,075,000.00          5.750%(3)         $           25,000             $1
 -------------------------------------------------------------------------------------------------------------
 Class B-2           $   4,960,000.00          5.880%(3)         $           25,000             $1
 -------------------------------------------------------------------------------------------------------------
 Class B-3           $   4,960,000.00          6.920%(3)         $           25,000             $1
 -------------------------------------------------------------------------------------------------------------
 Class X-1           $           0          Variable(4)(5)                      100%            $1
 -------------------------------------------------------------------------------------------------------------
 Class X-2           $           0               0.00%                          N/A             N/A
 =============================================================================================================
</TABLE>

-------------
(1)   The Class A-1, Class A-2, Class M-1 and Class M-2 Certificates are
      adjustable rate and will receive interest pursuant to formulas based on
      LIBOR, subject to the Net Funds Cap.

(2)   The initial pass-through rates on the Class P, Class A-R and Class A-RL
      Certificates will be approximately 8.42% per annum which is equal to the
      Net Funds Cap and will vary after the first Distribution Date.

(3)   The Class B-1, Class B-2 and Class B-3 Certificates have a fixed rate
      subject to the Net Funds Cap. The fixed rate will increase by 0.50% per
      annum after the Optional Termination Date.

(4)   The Class X-1 Certificates will have an initial principal balance of $0.00
      and will accrue interest on its notional amount. For any Distribution
      Date, the notional amount of the Class X-1 Certificates will be equal to
      the Aggregate Collateral Balance minus the aggregate Class Certificate
      Balance of the Class A-R, Class A-RL and Class P Certificates immediately
      prior to such Distribution Date. The initial notional amount of the Class
      X-1 Certificates is $310,000,000.

(5)   The Class X-1 Certificates are variable rate and will accrue interest on a
      notional amount.

                                       3
<PAGE>

            Set forth below are designations of Classes of Certificates to the
categories used herein:

<TABLE>
<S>                                                <C>
Book-Entry Certificates..........................  All Classes of Certificates other than the Physical Certificates.

ERISA-Restricted Certificates....................  Class A-R, Class A-RL, Class P and Class X Certificates.

LIBOR Certificates...............................  Class A-1, Class A-2, Class M-1 and Class M-2 Certificates.

Notional Amount Certificates.....................  Class X-1 Certificates.

Class A Certificates.............................  Class A-1, Class A-2, Class A-R and Class A-RL Certificates.

Class B Certificates.............................  Class B-1, Class B-2 and Class B-3 Certificates

Class M Certificates.............................  Class M-1 Certificates and Class M-2 Certificates.

Offered Certificates.............................  All  Classes of  Certificates  (other than the Class P  Certificates  and Class X
                                                    Certificates).

Physical Certificates............................  Class A-R, Class A-RL, Class P and Class X Certificates.

Private Certificates.............................  Class P Certificates and Class X Certificates.

Rating Agencies..................................  S&P and Moody's.

Regular Certificates.............................  All Classes of  Certificates  other than the Class A-R,  Class A-RL and Class X-2
                                                    Certificates.

Residual Certificates............................  Class A-R Certificates and Class A-RL Certificates.

Senior Certificates..............................  Class A-1, Class A-2, Class P, Class A-R and Class A-RL Certificates.

Subordinate Certificates.........................  Class M-1, Class M-2, Class B-1, Class B-2, Class B-3 and Class X-1 Certificates.

Minimum Denominations............................  Class A-1,  Class A-2,  Class M-1,  Class M-2, Class B-1, Class B-2 and Class B-3
                                                    Certificates: $25,000 and  multiples of $1 in excess thereof.
</TABLE>

                                       4
<PAGE>

                                                    Class A-R, Class A-RL and
                                                    Class P Certificates: $100.
                                                    The Class X-1 Certificates
                                                    will be issued as a single
                                                    Certificate with a
                                                    Certificate Principal
                                                    Balance of $0.00. The Class
                                                    X-2 Certificates will be
                                                    issued as a single
                                                    Certificate and will not
                                                    have a principal balance.

                                       5
<PAGE>

                                   ARTICLE I

                                   DEFINITIONS

            SECTION 1.01 Definitions.

      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,
those mortgage servicing practices of prudent mortgage lending institutions
which service mortgage loans of the same type as such Mortgage Loan in the
jurisdiction where the related Mortgaged Property is located.

            Advance: The payment required to be made by the Servicer with
respect to any Distribution Date pursuant to Section 4.01.

            Aggregate Collateral Balance: As of any date of determination will
be equal to the Aggregate Loan Balance plus the amount, if any, then on deposit
in the Pre-Funding Account.

            Aggregate Loan Balance: As of any Distribution Date will be equal to
the aggregate of the Stated Principal Balances of the Mortgage Loans determined
as of the last day of the related Collection Period.

            Aggregate Subsequent Transfer Amount: With respect to any Subsequent
Transfer Date, the aggregate Stated Principal Balance as of the applicable
Cut-off Date of the Subsequent Mortgage Loans conveyed on such Subsequent
Transfer Date, as listed on the revised Mortgage Loan Schedule delivered
pursuant to Section 2.01(b); provided, however, that such amount shall not
exceed the amount on deposit in the Pre-Funding Account.

            Agreement: This Pooling and Servicing Agreement and all amendments
or supplements hereto.

            Ancillary Income: All income derived from the Mortgage Loans, other
than Servicing Fees and Prepayment Charges, including but not limited to, late
charges, fees received with respect to checks or bank drafts returned by the
related bank for non-sufficient funds, assumption fees, optional insurance
administrative fees and all other incidental fees and charges.

            Applied Loss Amount: As to any Distribution Date, an amount equal to
the excess, if any of (i) the aggregate Class Principal Balance of the
Certificates after giving effect to all Realized Losses incurred with respect to
the Mortgage Loans during the Due Period for such Distribution Date and payments
of principal on such Distribution Date over (ii) the Aggregate Collateral
Balance for such Distribution Date.

                                       1
<PAGE>

            Appraised Value: The amount set forth in an appraisal made in
connection with the origination of the related Mortgage Loan as the value of the
Mortgaged Property.

            Assignment Agreement: An assignment agreement between DLJ Mortgage
Capital, Inc. as Seller and the Depositor, whereby the Mortgage Loans are
transferred and limited representations and warranties relating to the Mortgage
Loans are made.

            Assignment of Mortgage: An assignment of the Mortgage, notice of
transfer or equivalent instrument in recordable form (except for the omission of
the name of the assignee if such Mortgage is endorsed in blank), sufficient
under the laws of the jurisdiction wherein the related Mortgaged Property is
located to reflect the transfer of the Mortgage to the Trustee for the benefit
of the Certificateholders.

            Auction Purchaser: As defined in Section 9.01.

            Auction Date: As defined in Section 9.01.

            Available Funds: With respect to any Distribution Date the sum of
(i) all Scheduled Payments (net of the related Expense Fees) due on the Due Date
in the month in which such Distribution Date occurs and received prior to the
related Determination Date, together with any Advances in respect thereof
required pursuant to Section 4.01; (ii) all Insurance Proceeds, Liquidation
Proceeds and Net Recoveries received during the month preceding the month of
such Distribution Date; (iii) all Curtailments and Payoffs received during the
Prepayment Period applicable to such Distribution Date (excluding Prepayment
Charges); (iv) amounts received with respect to such Distribution Date as the
Substitution Adjustment Amount or Repurchase Price; (v) Compensating Interest
Payments for such Distribution Date and (vi) with respect to the Distribution
Date in January 2005, the amount remaining in the Pre-Funding Account at the end
of the Pre-Funding Period; as to clauses (i) through (iv) above, reduced by
amounts in reimbursement for Advances previously made and other amounts as to
which the Servicer is entitled to be reimbursed pursuant to Section 3.08.

            Bankruptcy Code: The United States Bankruptcy Reform Act of 1978, as
amended.

            Book-Entry Certificates: As specified in the Preliminary Statement.

            Business Day: Any day other than (i) a Saturday or a Sunday, or (ii)
a day on which banking institutions in the City of New York, New York, or the
city in which the Corporate Trust Office of the Trustee, or the states in which
the Servicer's servicing operations are located, or savings and loan
institutions in the States of Illinois, California, Texas, Oregon, New Jersey or
Florida is located are authorized or obligated by law or executive order to be
closed.

            Capitalized Interest Account: The separate Eligible Account
designated as such and created and maintained by the Trustee pursuant to Section
3.05(g) hereof. The Capitalized Interest Account shall be treated as an "outside
reserve fund" under applicable Treasury

                                       2
<PAGE>

regulations and shall not be part of any REMIC. Except as provided in Section
3.05(g) hereof, any investment earnings on the Capitalized Interest Account
shall be treated as owned by the Depositor and will be taxable to the Depositor.

            Capitalized Interest Deposit: $233,217.19.

            Capitalized Interest Requirement: With respect to the November 2004
Distribution Date, an amount equal to interest accruing during the related
Interest Accrual Period for the LIBOR Certificates at a per annum rate equal to
(x) the weighted average Pass-Through Rate of the Offered Certificates
multiplied by (y) the Pre-Funded Amount outstanding at the end of the related
Due Period. With respect to the December 2004 Distribution Date, an amount equal
to interest accruing during the related Interest Accrual Period for the LIBOR
Certificates at a per annum rate equal to (x) the weighted average Pass-Through
Rate of the Offered Certificates for such Distribution Date multiplied by (y)
the sum of (c) the Pre-Funded Amount at the end of the related Due Period and
(d) the aggregate Stated Principal Balance of the Subsequent Mortgage Loans that
do not have a first Due Date prior to December 1, 2004, transferred to the Trust
during the related Due Period. With respect to the January 2005 Distribution
Date, an amount equal to interest accruing during the related Interest Accrual
Period for the LIBOR Certificates at a per annum rate equal to (x) the weighted
average Pass-Through Rate of the Offered Certificates for such Distribution Date
multiplied by (y) the sum of (c) the Pre-Funded Amount at the end of the related
Due Period and (d) the aggregate Stated Principal Balance of the related
Subsequent Mortgage Loans that do not have a first Due Date prior to January 1,
2005, transferred to the Trust during the related Due Period.

            Carryforward Interest: For any Class of Certificates and any
Distribution Date, the sum of (1) the amount, if any, by which (x) the sum of
(A) Current Interest for such Class for the immediately preceding Distribution
Date and (B) any unpaid Carryforward Interest from previous Distribution Dates
exceeds (y) the amount paid in respect of interest on such Class on such
immediately preceding Distribution Date, and (2) interest on such amount for the
related Interest Accrual Period at the applicable Pass-Through Rate.

            Certificate: Any one of the Certificates executed by the Trustee in
substantially the forms attached hereto as exhibits.

            Certificates: As specified in the Preliminary Statement.

            Certificate Account: The separate Eligible Account created and
maintained with the Trustee, or any other bank or trust company acceptable to
the Rating Agencies which is incorporated under the laws of the United States or
any state thereof pursuant to Section 3.05, which account shall bear a
designation clearly indicating that the funds deposited therein are held in
trust for the benefit of the Trustee on behalf of the Certificateholders or any
other account serving a similar function acceptable to the Rating Agencies.
Funds in the Certificate Account may (i) be held uninvested without liability
for interest or compensation thereon or (ii) be invested at the direction of the
Trustee in Eligible Investments and reinvestment earnings thereon (net of
investment losses) shall be paid to the Trustee. Funds deposited in the
Certificate Account

                                       3
<PAGE>

(exclusive of the Trustee Fee and other amounts permitted to be withdrawn
pursuant to Section 3.08) shall be held in trust for the Certificateholders.

            Certificate Balance: With respect to any Certificate at any date,
the maximum dollar amount of principal to which the Holder thereof is then
entitled hereunder, such amount being equal to the Denomination thereof minus
the sum of (i) all distributions of principal previously made with respect
thereto and (ii) all Realized Losses allocated thereto and, in the case of any
Subordinate Certificates, all other reductions in Certificate Balance previously
allocated thereto pursuant to Section 4.05.

            Certificate Margin: As to each Class of LIBOR Certificates, the
applicable amount set forth below:

                 Class                      Certificate Margin
            ---------------     ------------------------------------------
                                         (1)                    (2)
                  A-1                   0.280%                0.560%
                  A-2                   0.500%                1.000%
                  M-1                   0.650%                0.975%
                  M-2                   1.100%                1.600%
----------------
(1)   On or prior to the Optional Termination Date.

(2)   After the Optional Termination Date.

            Certificate Owner: With respect to a Book-Entry Certificate, the
Person who is the beneficial owner of such Book-Entry Certificate.

            Certificate Register: The register maintained pursuant to Section
5.02.

            Certificateholder or Holder: The person in whose name a Certificate
is registered in the Certificate Register, except that, solely for the purpose
of giving any consent pursuant to this Agreement, any Certificate registered in
the name of the Depositor or any affiliate of the Depositor shall be deemed not
to be Outstanding and the Percentage Interest evidenced thereby shall not be
taken into account in determining whether the requisite amount of Percentage
Interests necessary to effect such consent has been obtained; provided, however,
that if any such Person (including the Depositor) owns 100% of the Percentage
Interests evidenced by a Class of Certificates, such Certificates shall be
deemed to be Outstanding for purposes of any provision hereof that requires the
consent of the Holders of Certificates of a particular Class as a condition to
the taking of any action hereunder. The Trustee is entitled to rely conclusively
on a certification of the Depositor or any affiliate of the Depositor in
determining which Certificates are registered in the name of an affiliate of the
Depositor.

            Charged Off Loan: With respect to any Distribution Date, a defaulted
Mortgage Loan that is (x) not an Old Republic Covered Loan or (y) for which
coverage under the Credit

                                       4
<PAGE>

Insurance Policy is no longer available, that has not yet been liquidated,,
giving rise to a Realized Loss, on the date on which the Servicer determines,
pursuant to the procedures set forth in Section 3.11, that there will be (i) no
Significant Net Recoveries with respect to such Mortgage Loan or (ii) the
potential Net Recoveries are anticipated to be an amount, determined by the
Servicer in its good faith judgment and in light of other mitigating
circumstances, that is insufficient to warrant proceeding through foreclosure or
other liquidation of the related Mortgaged Property.

            Class: All Certificates bearing the same class designation as set
forth in the Preliminary Statement.

            Class A-1 Pass-Through Rate: With respect to the initial Interest
Accrual Period, based on a LIBOR determination date of October 26, 2004, 2.2388%
per annum. With respect to any Interest Accrual Period thereafter, will be a per
annum rate equal to the lesser of (i) the sum of LIBOR plus the related
Certificate Margin and (ii) the Net Funds Cap.

            Class A-2 Pass-Through Rate: With respect to the initial Interest
Accrual Period, based on a LIBOR determination date of October 26, 2004, 2.4588%
per annum. With respect to any Interest Accrual Period thereafter, will be a per
annum rate equal to the lesser of (i) the sum of LIBOR plus the related
Certificate Margin and (ii) the Net Funds Cap.

            Class A-R Pass-Through Rate: With respect to the Distribution Date
in November 2004, December 2004 or January 2005, a per annum rate equal to the
Initial Mortgage Loan Net WAC Rate, and with respect to any Distribution Date
thereafter, a per annum rate equal to the Net Funds Cap.

            Class A-RL Pass-Through Rate: With respect to the Distribution Date
in November 2004, December 2004 or January 2005, a per annum rate equal to the
Initial Mortgage Loan Net WAC Rate, and with respect to any Distribution Date
thereafter, a per annum rate equal to the Net Funds Cap.

            Class B-1 Pass-Through Rate: With respect to the initial Interest
Accrual Period (a) on or prior to the Optional Termination Date, the lesser of
(i) 5.750% per annum and (ii) the Net Funds Cap, and (b) after the Optional
Termination Date, the lesser of (i) 6.250% per annum and (ii) the Net Funds Cap.

            Class B-1 Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event is not in effect with
respect to such Distribution Date, will be the amount, if any, by which (x) the
sum of (i) the aggregate Class Principal Balance of the Class A-1, Class A-2,
Class P, Class A-R, Class A-RL, Class M-1 and Class M-2 Certificates, in each
case, after giving effect to payments on such Distribution Date and (ii) the
Class Principal Balance of the Class B-1 Certificates immediately prior to such
Distribution Date exceeds (y) the lesser of (A) the product of (i) 87.60% and
(ii) the Aggregate Collateral Balance for such Distribution Date and (B) the
amount, if any, by which (i) the Aggregate Collateral

                                       5
<PAGE>

Balance for such Distribution Date exceeds (ii) 0.50% of the Aggregate
Collateral Balance as of the Cut-off Date.

            Class B-2 Pass-Through Rate: With respect to the initial Interest
Accrual Period (a) on or prior to the Optional Termination Date, the lesser of
(i) 5.880% per annum and (ii) the Net Funds Cap, and (b) after the Optional
Termination Date, the lesser of (i) 6.380% per annum and (ii) the Net Funds Cap.

            Class B-2 Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event is not in effect with
respect to such Distribution Date, will be the amount, if any, by which (x) the
sum of (i) the aggregate Class Principal Balance of the Class A-1, Class A-2,
Class P, Class A-R, Class A-RL, Class M-1, Class M-2 and Class B-1 Certificates,
in each case, after giving effect to payments on such Distribution Date and (ii)
the Class Principal Balance of the Class B-2 Certificates immediately prior to
such Distribution Date exceeds (y) the lesser of (A) the product of (i) 90.80%
and (ii) the Aggregate Collateral Balance for such Distribution Date and (B) the
amount, if any, by which (i) the Aggregate Collateral Balance for such
Distribution Date exceeds (ii) 0.50% of the Aggregate Collateral Balance as of
the Cut-off Date.

            Class B-3 Pass-Through Rate: With respect to the initial Interest
Accrual Period (a) on or prior to the Optional Termination Date, the lesser of
(i) 6.920% per annum and (ii) the Net Funds Cap, and (b) after the Optional
Termination Date, the lesser of (i) 7.420% per annum and (ii) the Net Funds Cap.

            Class B-3 Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event is not in effect with
respect to such Distribution Date, will be the amount, if any, by which (x) the
sum of (i) the aggregate Class Principal Balance of the Class A-1, Class A-2,
Class P, Class A-R, Class A-RL, Class M-1, Class M-2, Class B-1 and Class B-2
Certificates, in each case, after giving effect to payments on such Distribution
Date and (ii) the Class Principal Balance of the Class B-3 Certificates
immediately prior to such Distribution Date exceeds (y) the lesser of (A) the
product of (i) 94.00% and (ii) the Aggregate Collateral Balance for such
Distribution Date and (B) the amount, if any, by which (i) the Aggregate
Collateral Balance for such Distribution Date exceeds (ii) 0.50% of the
Aggregate Collateral Balance as of the Cut-off Date.

            Class M-1 Pass-Through Rate: With respect to the initial Interest
Accrual Period, based on a LIBOR determination date of October 26, 2004, 2.6088%
per annum. With respect to any Interest Accrual Period thereafter, will be a per
annum rate equal to the lesser of (i) the sum of LIBOR plus the related
Certificate Margin and (ii) the Net Funds Cap.

            Class M-1 Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event is not in effect with
respect to such Distribution Date, will be the amount, if any, by which (x) the
sum of (i) the aggregate Class Principal Balance of the Class A-1, Class A-2,
Class P, Class A-R and Class A-RL Certificates after giving effect to payments
on such Distribution Date and (ii) the Class Principal Balance of the

                                       6
<PAGE>

Class M-1 Certificates immediately prior to such Distribution Date exceeds (y)
the lesser of (A) the product of (i) 67.70% and (ii) the Aggregate Collateral
Balance for such Distribution Date and (B) the amount, if any, by which (i) the
Aggregate Collateral Balance for such Distribution Date exceeds (ii) 0.50% of
the Aggregate Collateral Balance as of the Cut-off Date.

            Class M-2 Pass-Through Rate: With respect to the initial Interest
Accrual Period, based on a LIBOR determination date of October 26, 2004, 3.0588%
per annum. With respect to any Interest Accrual Period thereafter, will be a per
annum rate equal to the lesser of (i) the sum of LIBOR plus the related
Certificate Margin and (ii) the Net Funds Cap.

            Class M-2 Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event has not occurred with
respect to such Distribution Date, will be the amount, if any, by which (x) the
sum of (i) the aggregate Class Principal Balance of the Class A-1, Class A-2,
Class P, Class A-R, Class A-RL and Class M-1 Certificates, in each case, after
giving effect to payments on such Distribution Date and (ii) the Class Principal
Balance of the Class M-2 Certificates immediately prior to such Distribution
Date exceeds (y) the lesser of (A) the product of (i) 81.10% and (ii) the
Aggregate Collateral Balance for such Distribution Date and (B) the amount, if
any, by which (i) the Aggregate Collateral Balance for such Distribution Date
exceeds (ii) 0.50% of the Aggregate Collateral Balance as of the Cut-off Date.

            Class X-1 Distributable Amount: With respect to any Distribution
Date, the amount of interest accrued during the related Interest Accrual Period
at the related Pass-Through Rate on the Class X-1 Notional Amount for such
Distribution Date.

            Class X-1 Notional Amount: Immediately prior to any Distribution
Date, with respect to the Class X-1 Certificates, an amount equal to the
aggregate of the Uncertificated Principal Balances of the REMIC 2 Regular
Interests (other than REMIC 2 Regular Interests MTI-P and MTI-R).

            Class P Pass-Through Rate: With respect to the Class P Certificates
and the Distribution Dates, for November 2004, December 2004 and January 2005, a
per annum rate equal to the Initial Mortgage Loan Net WAC Rate, and with respect
to any Distribution Date thereafter, a per annum rate equal to the Net Funds
Cap. For federal income tax purposes, however, with respect to any Distribution
Date, the Class P Certificates will be entitled to 100% of the interest accrued
on REMIC 2 Regular Interest MTI-P.

            Class Principal Balance: With respect to any Class and as to any
date of determination, the aggregate of the Certificate Balances of all
Certificates of such Class as of such date plus, in the case of any Subordinate
Certificates, any increase in the Class Principal Balance of such Class pursuant
to Section 4.02(vii) due to the receipt of Net Recoveries.

            Class R-2 Interest: The sole class of residual interests in REMIC 2.

            Class R-3 Interest: The sole class of residual interests in REMIC 3.

                                       7
<PAGE>

            Closing Date: October 28, 2004.

            Code: The Internal Revenue Code of 1986, as the same may be amended
from time to time (or any successor statute thereto).

            Collection Accounts: The accounts established and maintained by the
Servicer in accordance with Section 3.05.

            Collection Period: With respect to any Distribution Date, the period
from the second day of the month immediately preceding such Distribution Date to
and including the first day of the month of such Distribution Date.

            Combined Loan-to-Value Ratio: With respect to any Mortgage Loan and
as of any date of determination, the fraction (expressed as a percentage) the
numerator of which is the sum of (i) original principal balance of the related
Mortgage Loan at such date of determination and (ii) the unpaid principal
balance of the related First Mortgage Loan as of the date of origination of that
Mortgage Loan and the denominator of which is (a) with respect to a refinanced
Mortgage Loan, the Appraised Value of the related Mortgaged Property at
origination and (b) with respect to all other Mortgage Loans, the lesser of (i)
the Appraised Value of the related Mortgage Property at origination and (ii) the
purchase price of the related Mortgaged Property.

            Compensating Interest Payment: For any Distribution Date, an amount
to be paid by the Servicer for such Distribution Date, equal to the lesser of
(i) an amount equal to one half of the monthly Servicing Fee Rate on the
Mortgage Loans otherwise payable to the Servicer on such Distribution Date
(prior to giving effect to any Scheduled Payments due on the Mortgage Loans on
such Due Date) and (ii) the aggregate Prepayment Interest Shortfall for the
Mortgage Loans relating to Principal Prepayments received during the related
Prepayment Period.

            Corporate Trust Office: The designated office of the Trustee in the
State of New York at which at any particular time its corporate trust business
with respect to this Agreement shall be administered, which office at the date
of the execution of this Agreement is located at 4 New York Plaza, 6th Floor,
New York, New York 10004-2477, Attention: Institutional Trust Services/Global
Debt: Home Equity Mortgage Trust-2004-5.

            Corresponding Certificate: Corresponding Certificate: With respect
to (i) REMIC 2 Regular Interest MTI-P, (ii) REMIC 2 Regular Interest MTI-R,
(iii) REMIC 2 Regular Interest MTI-A-1, (iv) REMIC 2 Regular Interest MTI-A-2,
(v) REMIC 2 Regular Interest MTI-M-1, (vi) REMIC 2 Regular Interest MTI-M-2,
(vii) REMIC 2 Regular Interest MTI-B-1, (viii) REMIC 2 Regular Interest MTI-B-2
and (ix) REMIC 3 Regular Interest MTI-B-3, the (i) Class P Certificates, (ii)
Class A-R Certificates, (iii) Class A-1 Certificates, (iv) Class A-2
Certificates, (v) Class M-1 Certificates, (vi) Class M-2 Certificates, (vii)
Class B-1 Certificates, (viii) Class B-2 Certificates and (ix) Class B-3
Certificates, respectively.

                                       8
<PAGE>

            Corresponding Uncertificated Interest: With respect to (i) REMIC 1
Regular Interest LTI-P and (ii) REMIC 1 Regular Interest LTI-R, (i) REMIC 2
Regular Interest MTI-P and (ii) REMIC 2 Regular Interest MTI-R, respectively.

            Credit Insurance Policy: The credit insurance policy provided by the
Credit Insurance Provider with respect to the Old Republic Covered Loans having
an initial amount of coverage equal to $14,984,160.00, and including any and all
related endorsements, copies of which are attached hereto as Exhibit BB-1, or
any replacement obtained by the Servicer pursuant to Section 3.22 hereof.

            Credit Insurance Provider: Old Republic Insurance Company, or any
successor thereto or the named insurer in any replacement policy obtained by the
Servicer pursuant to Section 3.22 hereof.

            Credit Insurance Provider Fee: The amount payable to the Credit
Insurance Provider in order to obtain coverage provided under the Credit
Insurance Policy, such amount being, as to each Old Republic Covered Loan and
any Distribution Date, an amount equal to one-twelfth of the related Credit
Insurance Provider Fee Rate on the Net Proceeds (as defined in the Credit
Insurance Policy) of the Old Republic Covered Loan.

            Credit Insurance Provider Fee Rate: 1.32% per annum.

            Credit Risk Manager: The Murrayhill Company, a Colorado corporation.

            Credit Risk Management Agreement: The agreement between Wilshire and
the Credit Risk Manager dated as of October 28, 2004.

            Credit Risk Manager Fee: As to each Mortgage Loan and any
Distribution Date, an amount equal to one month's interest at the Credit Risk
Manager Fee Rate on the Stated Principal Balance of such Mortgage Loan as of the
Due Date in the month of such Distribution Date (prior to giving effect to any
Scheduled Payments due on such Mortgage Loan on such Due Date).

            Credit Risk Manager Fee Rate: 0.0175% per annum.

            CSFB: Credit Suisse First Boston LLC, a Delaware limited liability
company, and its successors and assigns.

            Cumulative Loss Event: For any Distribution Date, a Cumulative Loss
Event is occurring if Cumulative Net Realized Losses on the Mortgage Loans, plus
the amount by which the total available coverage under the Credit Insurance
Policy has been reduced as of such date, equal or exceed the percentage of the
Aggregate Collateral Balance as of the Cut-off Date for that Distribution Date
as specified below:

                                       9
<PAGE>

<TABLE>
<CAPTION>
            Distribution Date                             Percentage of Aggregate Collateral Balance
---------------------------------------    ------------------------------------------------------------------------
<S>                                        <C>
November 2004 - October 2007...........                                      N.A.
November 2007 - October 2008...........     6.25% for the first month, plus an additional 1/12th of 2.50% for each
                                                                       month thereafter
November 2008 - October 2009...........     8.75% for the first month, plus an additional 1/12th of 0.75% for each
                                                                       month thereafter
November 2009 - October 2010...........     9.50% for the first month, plus an additional 1/12th of 0.50% for each
                                                                       month thereafter
November 2010 - October 2011...........    10.00% for the first month, plus an additional 1/12th of 0.50% for each
                                                                       month thereafter
November 2011 and thereafter...........                                     10.50%
</TABLE>

            Cumulative Net Realized Losses: As to any date of determination the
aggregate amount of Realized Losses as reduced by any Net Recoveries received on
Charged Off Loans.

            Current Interest: For any Class of Certificates and Distribution
Date, the amount of interest accruing at the applicable Pass-Through Rate on the
related Class Principal Balance, or Notional Amount, as applicable, of such
Class during the related Interest Accrual Period; provided, that if and to the
extent that on any Distribution Date the Interest Remittance Amount is less than
the aggregate distributions required pursuant to Section 4.02(b)(i)A-F without
regard to this proviso, then the Current Interest on each such Class will be
reduced, on a pro rata basis in proportion to the amount of Current Interest for
each Class without regard to this proviso, by the lesser of (i) the amount of
the deficiency described above in this proviso and (ii) the related Interest
Shortfall for such Distribution Date.

            Curtailment: Any payment of principal on a Mortgage Loan, made by or
on behalf of the related Mortgagor, other than a Scheduled Payment, a prepaid
Scheduled Payment or a Payoff, which is applied to reduce the outstanding Stated
Principal Balance of the Mortgage Loan.

            Custodial Agreement: The agreement, among the Trustee, the Custodian
and the Depositor providing for the safekeeping of any documents or instruments
referred to in Section 2.01 on behalf of the Certificateholders, attached hereto
as Exhibit R.

            Custodian: LaSalle Bank National Association, a national banking
association, or any successor custodian appointed pursuant to the terms of the
Custodial Agreement. Each Custodian so appointed shall act as agent on behalf of
the Trustee, and shall be compensated by the Depositor. The Trustee shall remain
at all times responsible under the terms of this Agreement, notwithstanding the
fact that certain duties have been assigned to a Custodian.

            Cut-off Date: For any Mortgage Loan, other than a Subsequent
Mortgage Loan, October 1, 2004. For any Subsequent Mortgage Loan, the applicable
Subsequent Transfer Date.

            Cut-off Date Principal Balance: As to any Mortgage Loan, the Stated
Principal Balance thereof as of the close of business on the Cut-off Date.

                                       10
<PAGE>

            Defective Mortgage Loan: Any Mortgage Loan which is required to be
repurchased pursuant to Section 2.02 or 2.03.

            Deferred Amount: For any Class of Class M or Class B Certificates
and any Distribution Date, will equal the amount by which (x) the aggregate of
the Applied Loss Amounts previously applied in reduction of the Class Principal
Balance thereof exceeds (y) the sum of (i) the aggregate of amounts previously
paid in reimbursement thereof and (ii) the amount of the increase in the related
Class Principal Balance due to the receipt of Net Recoveries as provided in
Section 4.02(vii).

            Definitive Certificates: Any Certificate issued in lieu of a
Book-Entry Certificate pursuant to Section 5.02(e).

            Deleted Mortgage Loan: As defined in Section 2.03.

            Delinquency Rate: For any month, a fraction, expressed as a
percentage, the numerator of which is the aggregate outstanding principal
balance of all Mortgage Loans 60 or more days delinquent (including all
foreclosures and REO Properties) as of the close of business on the last day of
such month, and the denominator of which is the Aggregate Collateral Balance as
of the close of business on the last day of such month.

            Denomination: With respect to each Certificate, the amount set forth
on the face thereof as the "Initial Certificate Balance of this Certificate" or
the "Initial Notional Amount of this Certificate" or, if neither of the
foregoing, the Percentage Interest appearing on the face thereof.

            Depositor: Credit Suisse First Boston Mortgage Securities Corp., a
Delaware corporation, or its successor in interest.

            Depository: The initial Depository shall be The Depository Trust
Company, the nominee of which is CEDE & Co., as the registered Holder of the
Book-Entry Certificates. The Depository shall at all times be a "clearing
corporation" as defined in Section 8-102(3) of the Uniform Commercial Code of
the State of New York.

            Depository Participant: A broker, dealer, bank or other financial
institution 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: As to any Distribution Date, the second Business
Day immediately following the 15th day of the month of such Distribution Date.

            Distribution Date: The 25th day of each month or if such day is not
a Business Day, the first Business Day thereafter, commencing in November 2004.

            DLJMC: DLJ Mortgage Capital, Inc., a Delaware corporation, and its
successors and assigns.

                                       11
<PAGE>

            Due Date: With respect to any Distribution Date and any Mortgage
Loan, the day during the related Due Period on which the Scheduled Payment is
due.

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

            Eligible Account: Either (i) an account or accounts maintained with
a federal or state chartered depository institution or trust company acceptable
to the Rating Agencies or (ii) an account or accounts the deposits in which are
insured by the FDIC to the limits established by such corporation, provided that
any such deposits not so insured shall be maintained in an account at a
depository institution or trust company whose commercial paper or other short
term debt obligations (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 obligations of such holding company) have been
rated by Moody's and Fitch in its highest short-term rating category and by S&P
at least "A-1+", or (iii) a segregated trust account or accounts (which shall be
a "special deposit account") maintained with the Trustee or any other federal or
state chartered depository institution or trust company, acting in its fiduciary
capacity, in a manner acceptable to the Trustee and the Rating Agencies.
Eligible Accounts may bear interest.

            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 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; or obligations fully
      guaranteed by, the United States of America; Freddie Mac, Fannie Mae, the
      Federal Home Loan Banks or any agency or instrumentality of the United
      States of America rated AA or higher by the Rating Agencies;

            (ii) federal funds, demand and time deposits in, certificates of
      deposits of, or bankers' acceptances issued by, any depository institution
      or trust company incorporated or organized 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, so long as at the
      time of such investment or 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
      obligations of such holding company) are rated in one of two of the
      highest ratings by each of the Rating Agencies, and the long-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 long-term debt obligations of such
      holding company) are rated in one of two of the highest ratings, by each
      of the Rating Agencies;

                                       12
<PAGE>

            (iii) repurchase obligations with a term not to exceed 30 days with
      respect to any security described in clause (i) above and entered into
      with a depository institution or trust company (acting as a principal)
      rated "A" or higher by Moody's, "A-1" or higher by S&P and "F-1" or higher
      by Fitch; provided, however, that collateral transferred pursuant to such
      repurchase obligation must be of the type described in clause (i) above
      and must (A) be valued daily at current market price plus accrued
      interest, (B) pursuant to such valuation, be equal, at all times, to 105%
      of the cash transferred by the Trustee in exchange for such collateral,
      and (C) be delivered to the Trustee or, if the Trustee is supplying the
      collateral, an agent for the Trustee, in such a manner as to accomplish
      perfection of a security interest in the collateral by possession of
      certificated securities;

            (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 has a long-term unsecured debt rating in the
      highest available rating category of each of the Rating Agencies at the
      time of such investment;

            (v) commercial paper having an original maturity of less than 365
      days and issued by an institution having a short-term unsecured debt
      rating in the highest available rating category of Moody's and Fitch and
      rated "A-1+" by S&P at the time of such investment;

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

            (vii) which may be 12b-1 funds as contemplated under the rules
      promulgated by the Securities and Exchange Commission under the Investment
      Company Act of 1940) having ratings in the highest available rating
      category of Moody's and Fitch and or "AAAm" or "AAAm-G" by S&P at the time
      of such investment (any such money market funds which provide for demand
      withdrawals being conclusively deemed to satisfy any maturity requirements
      for Eligible Investments set forth herein) including money market funds of
      the Servicer or the Trustee and any such funds that are managed by the
      Servicer or the Trustee or their respective Affiliates or for the Servicer
      or the Trustee or any Affiliate of either acts as advisor, as long as such
      money market funds satisfy the criteria of this subparagraph (vii); and

            (viii) such other investments the investment in which will not, as
      evidenced by a letter from each of the Rating Agencies, result in the
      downgrading or withdrawal of the Ratings of the Certificates.

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

                                       13
<PAGE>

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.

            ERISA: The Employee Retirement Income Security Act of 1974, as
amended.

            ERISA-Restricted Certificates: As specified in the Preliminary
Statement.

            Escrow Account: The separate account or accounts created and
maintained by the Servicer pursuant to Section 3.06.

            Escrow Mortgage Loan: Any Mortgage Loan for which the Servicer has
established an Escrow Account for items constituting Escrow Payments.

            Escrow Payments: With respect to any Mortgage Loan, the amounts
constituting ground rents, taxes, mortgage insurance premiums, fire and hazard
insurance premiums, and any other payments required to be escrowed by the
Mortgagor with the mortgagee pursuant to the Mortgage, applicable law or any
other related document.

            Event of Default: As defined in Section 7.01.

            Excess Cashflow Loss Payment: As defined in Section 4.02(b)(iv)(A).

            Expense Fees: As to each Mortgage Loan, the sum of the related
Servicing Fee, the Credit Risk Manager Fee, the Credit Insurance Provider Fee
(if applicable) and the Trustee Fee.

            Expense Fee Rate: As to each Mortgage Loan, the sum of the related
Servicing Fee Rate, the Credit Risk Manager Fee Rate, the Credit Insurance
Provider Fee Rate (if applicable) and the Trustee Fee Rate.

            Fair Market Value: The fair market value of all of the property of
the Trust, as agreed upon between the Optional Termination Holder and a majority
of the Holders of the Class A-RL Certificates; provided, however, that if the
Optional Termination Holder and a majority of the Holders of the Class A-RL
Certificates do not agree upon the fair market value of all the property of the
Trust, the Trustee shall solicit, or cause the solicitation of, good faith bids
for all of the property of the Trust until it has received three bids from
institutions that are regular purchasers and/or sellers in the secondary market
of residential whole mortgage loans similar to the Mortgage Loans, and the Fair
Market Value shall be equal to the highest of such three bids.

            Fannie Mae: Fannie Mae, a federally chartered and privately owned
corporation organized and existing under the Federal National Mortgage
Association Charter Act, or any successor thereto.

            Fannie Mae Guides: The Fannie Mae Sellers' Guide and the Fannie Mae
Servicers' Guide and all amendments or additions thereto.

                                       14
<PAGE>

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

            FIRREA: The Financial Institutions Reform, Recovery and Enforcement
Act of 1989.

            First Mortgage Loan: A Mortgage Loan that is secured by a first lien
on the Mortgaged Property securing the related Mortgage Note.

            Fitch: Fitch, Inc., or any successor thereto.

            Foreclosure Restricted Loan: Any Mortgage Loan that is 60 or more
days delinquent as of the Closing Date, unless such Mortgage Loan has become
current for three consecutive Scheduled Payments after the Closing Date.

            Freddie Mac: Freddie Mac, a corporate instrumentality of the United
States created and existing under Title III of the Emergency Home Finance Act of
1970, as amended, or any successor thereto.

            Highest Priority: As of any date of determination, the Class of
Subordinate Certificates then outstanding with a Class Principal Balance greater
than zero, with the highest priority for payments pursuant to Section 4.02, in
the following order of decreasing priority: Class M-1, Class M-2, Class B-1,
Class B-2 and Class B-3 Certificates.

            Initial Mortgage Loan: A Mortgage Loan conveyed to the Trust on the
Closing Date pursuant to this Agreement as identified on the Mortgage Loan
Schedule delivered to the Trustee on the Closing Date.

            Initial Mortgage Loan Net WAC Rate: A per annum rate equal to the
weighted average of the Net Mortgage Rates of the Initial Mortgage Loans.

            Indirect Participant: A broker, dealer, bank or other financial
institution or other Person that clears through or maintains a custodial
relationship with a Depository Participant.

            Insurance Proceeds: Proceeds due under the Credit Insurance Policy,
and proceeds paid under any other Insurance Policy covering a Mortgage Loan to
the extent the proceeds are not (i) applied to the restoration of the related
Mortgaged Property, (ii) applied to the satisfaction of any related First
Mortgage Loan or (iii) released to the Mortgagor in accordance with the
procedures that the Servicer would follow in servicing mortgage loans held for
its own account.

            Interest Accrual Period: With respect to each Distribution Date, (i)
with respect to the Class B-1, Class B-2, Class B-3, Class A-R, Class A-RL,
Class P and, Class X-1 Certificates, the calendar month prior to the month of
such Distribution Date, (ii) with respect to the Class A- 1, Class A-2, Class
M-1 and Class M-2 Certificates, the one-month period commencing on the
immediately preceding Distribution Date (or the Closing Date, in the case of the
first Distribution Date) and ending on the day immediately preceding the related
Distribution Date.

                                       15
<PAGE>

            Interest Remittance Amount: For any Distribution Date, an amount
equal to the sum of (1) all interest collected (other than Payaheads, if
applicable) or advanced in respect of Scheduled Payments on the Mortgage Loans
during the related Due Period, the interest portion of Payaheads previously
received and intended for application in the related Due Period and the interest
portion of all Payoffs and Curtailments received on the Mortgage Loans during
the related Prepayment Period, less (x) the Expense Fee with respect to such
Mortgage Loans and (y) unreimbursed Advances and other amounts due to the
Servicer or the Trustee with respect to such Mortgage Loans, to the extent
allocable to interest, (2) all Compensating Interest Payments paid by the
Servicer with respect to such Distribution Date, (3) the portion of any
Substitution Adjustment Amount or Repurchase Price paid with respect to such
Mortgage Loans during the calendar month immediately preceding the Distribution
Date allocable to interest, (4) all Liquidation Proceeds, Net Recoveries and any
Insurance Proceeds and other recoveries (net of unreimbursed Advances, Servicing
Advances and expenses, to the extent allocable to interest, and unpaid Servicing
Fees) collected with respect to the Mortgage Loans during the prior calendar
month, to the extent allocable to interest and (5) any amounts withdrawn from
the Capitalized Interest Account to pay interest on the Certificates with
respect to such Distribution Date

            Interest Shortfall: For any Distribution Date, the aggregate
shortfall, if any, in collections of interest for the previous month (adjusted
to the related Net Mortgage Rate) on Mortgage Loans resulting from (a) Principal
Prepayments received during the related Prepayment Period to the extent not
covered by Compensating Interest, (b) payments received under the Credit
Insurance Policy during the related Prepayment Period and (c) Relief Act
Reductions.

            Last Scheduled Distribution Date: With respect to each Class of
Certificates, the Distribution Date in February 2035.

            Latest Possible Maturity Date: Solely for purposes of satisfying
Treasury regulation Section 1.860G-1(a)(4)(iii), the "latest possible maturity
date" of all interests created in REMIC 1, REMIC 2 and REMIC 3 shall be February
25, 2035.

            LIBOR: For any Interest Accrual Period other than the first Interest
Accrual Period, the rate for United States dollar deposits for one month which
appears on the Dow Jones Telerate Screen Page 3750 as of 11:00 A.M., London,
England time, on the second LIBOR Business Day prior to the first day of such
Interest Accrual Period. With respect to the first Interest Accrual Period, the
rate for United States dollar deposits for one month which appears on the Dow
Jones Telerate Screen Page 3750 as of 11:00 A.M., London, England time, two
LIBOR Business Days prior to the Closing Date. 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, such other service for displaying LIBOR or
comparable rates as may be reasonably selected by the Trustee), the rate will be
the Reference Bank Rate. If no such quotations can be obtained and no Reference
Bank Rate is available, LIBOR will be the LIBOR applicable to the Interest
Accrual Period preceding the next applicable Distribution Date.

                                       16
<PAGE>

            LIBOR Business Day: Any day other than (i) a Saturday or a Sunday or
(ii) a day on which banking institutions in the State of New York or in the city
of London, England are required or authorized by law to be closed.

            Liquidated Mortgage Loan: With respect to any Distribution Date, a
defaulted Mortgage Loan (including any REO Property) which was liquidated or for
which payments under the related private mortgage insurance policy, hazard
insurance policy or any condemnation proceeds were received, in the calendar
month preceding the month of such Distribution Date and as to which the Servicer
has determined (in accordance with this Agreement) that it has received all
amounts it expects to receive in connection with the liquidation of such
Mortgage Loan, including the final disposition of the related REO Property.

            Liquidation Proceeds: Amounts, including Insurance Proceeds,
received in connection with the partial or complete liquidation of defaulted
Mortgage Loans, whether through trustee's sale, foreclosure sale or similar
disposition or amounts received in connection with any condemnation or partial
release of a Mortgaged Property and any other proceeds received in connection
with an REO Property, in each case, which, for the avoidance of doubt, is
remaining after, or not otherwise required to be applied to, the satisfaction of
any related First Mortgage Loan, less the sum of related unreimbursed Expense
Fees, Servicing Advances, Advances and reasonable out-of-pocket expenses.

            Majority in Interest: As to any Class of Regular Certificates or the
Class X-2 Certificates, the Holders of Certificates of such Class evidencing, in
the aggregate, at least 51% of the Percentage Interests evidenced by all
Certificates of such Class.

            Marker Rate: With respect to the Class X-1 Certificates 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 REMIC 2 Regular Interests
MTI-A-1, MTI-A-2, MTI-M-1, MTI-M-2, MTI-B-1, MTI-B-2, MTI-B-3 and MTI-ZZ, with
the rates on the REMIC 2 Regular Interests MTI-A-1, MTI-A-2, MTI-M-1 and MTI-M-2
subject to a cap, for the purpose of this calculation, equal to the lesser of
(A) LIBOR plus the Certificate Margin for the Corresponding Certificate and (B)
the REMIC 2 Net WAC Rate, with the rate on the REMIC 2 Regular Interest MTI-B-1
subject to a cap, for purposes of this calculation, equal to the lesser of (A)
5.750% per annum on or prior to the Optional Termination Date and 6.250% per
annum after the Optional Termination Date and (B) the REMIC 2 Net WAC Rate, with
the rate on the REMIC 2 Regular Interest MTI-B-2 subject to a cap, for purposes
of this calculation, equal to the lesser of (A) 5.880% per annum on or prior to
the Optional Termination Date and 6.380% per annum after the Optional
Termination Date and (B) the REMIC 2 Net WAC Rate, with the rate on the REMIC 2
Regular Interest MTI-B-3 subject to a cap, for purposes of this calculation,
equal to the lesser of (A) 6.920% per annum on or prior to the Optional
Termination Date and 7.420% per annum after the Optional Termination Date and
(B) the REMIC 2 Net WAC Rate and with the rate on the REMIC 2 Regular Interest
MTI-ZZ subject to a cap, for the purpose of this calculation, equal to zero.

                                       17
<PAGE>

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

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

            MERS(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.

            Monthly Excess Cashflow: For any Distribution Date, an amount equal
to the sum of (1) the Monthly Excess Interest and (2) the Overcollateralization
Release Amount, if any, for such date.

            Monthly Excess Interest: As to any Distribution Date, the sum of (A)
the Interest Remittance Amount remaining after the application of payments
pursuant to clauses A. through G. of Section 4.02(b)(i) plus (B) the Principal
Payment Amount remaining after the application of payments pursuant to clauses
A. through G. of Section 4.02(b)(ii) or (iii).

            Monthly Statement: The statement delivered to the Certificateholders
pursuant to Section 4.06.

            Moody's: Moody's Investors Service, Inc., or any successor thereto.
For purposes of Section 10.05(b) the address for notices to Moody's shall be
Moody's Investors Service, Inc., 99 Church Street, New York, New York 10007,
Attention: Residential Pass-Through Monitoring, or such other address as Moody's
may hereafter furnish to the Depositor, the Servicer and the Trustee.

            Mortgage: The mortgage, deed of trust or other instrument creating a
first or second lien on an estate in fee simple or leasehold interest in real
property securing a Mortgage Note.

            Mortgage File: The Mortgage documents listed in Section 2.01(b)
hereof pertaining to a particular Initial Mortgage Loan or Subsequent Mortgage
Loan and any additional documents delivered to the Trustee to be added to the
Mortgage File pursuant to this Agreement.

            Mortgage Loans: Such of the mortgage loans transferred and assigned
to the Trustee pursuant to the provisions hereof as from time to time are held
as a part of the Trust Fund (including any REO Property), the mortgage loans so
held being identified in the Mortgage

                                       18
<PAGE>

Loan Schedule, notwithstanding foreclosure or other acquisition of title of the
related Mortgaged Property.

            Mortgage Loan Purchase Price: The price, calculated as set forth in
Section 9.01, to be paid in connection with the purchase of the Trust Collateral
by the Auction Purchaser.

            Mortgage Loan Schedule: The Mortgage Loan Schedule which will list
the Mortgage Loans (as from time to time amended by the Seller to reflect the
addition of Qualified Substitute Mortgage Loans and the purchase of Mortgage
Loans pursuant to Section 2.01(f), 2.02 or 2.03) transferred to the Trustee as
part of the Trust Fund and from time to time subject to this Agreement, attached
hereto as Schedule I, setting forth the following information with respect to
each Mortgage Loan:

            (i) the Mortgage Loan identifying number;

            (ii) [reserved];

            (iii) the zip code of the Mortgaged Property;

            (iv) a code indicating the type of Mortgaged Property and the
      occupancy status.

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

            (vi) the Combined Loan-to-Value Ratio at origination;

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

            (viii) the stated maturity date;

            (ix) the amount of the Scheduled Payment as of the Cut-off Date;

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

            (xi) the principal balance of the Mortgage Loan as of the close of
      business on the Cut-off Date, after deduction of payments of principal due
      on or before the Cut-off Date whether or not collected;

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

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

            (xiv) the Originator of the related Mortgage Loan;

                                       19
<PAGE>

            (xv) the Servicing Fee Rate;

            (xvi) the related sub-servicer;

            (xvii) a code indicating whether a Mortgage Loan is subject to a
      Prepayment Charge;

            (xviii) the amount of the Prepayment Charge with respect to each
      Mortgage Loan and a code identifying whether such Prepayment Charge is
      related to a Curtailment or Payoff;

            (xix) whether such Mortgage Loan is a Balloon Loan;

            (xx) a code indicating whether the Mortgage Loan is a MERS Mortgage
      Loan and, if so, its corresponding MIN; and

            (xxi) whether such Mortgage Loan is an Old Republic Covered Loan.

            With respect to the Mortgage Loans in the aggregate, each, the
Mortgage Loan Schedule shall set forth the following information, as of the
Cut-off Date:

            (i) the number of Mortgage Loans; and

            (ii) the current aggregate principal balance of the Mortgage Loans
as of the close of business on the Cut-off Date, after deduction of payments of
principal due on or before the Cut-off Date whether or not collected.

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

            Mortgage Rate: The annual fixed rate of interest borne by a Mortgage
Note.

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

            Mortgagor: The obligor(s) on a Mortgage Note.

            Net Excess Spread: With respect to any Distribution Date and Loan, a
fraction, expressed as a percentage, the numerator of which is equal to the
excess of (x) the aggregate Stated Principal Balance for such Distribution Date
of the Mortgage Loans, multiplied by the weighted average Net Mortgage Rate of
such Mortgage Loans over (y) the Interest Remittance Amount for such
Distribution Date, and the denominator of which is an amount equal to the
aggregate Stated Principal Balance for such Distribution Date of the Mortgage
Loans, multiplied by the actual number of days elapsed in the related Interest
Accrual Period divided by 360.

            Net Funds Cap: As to any Distribution Date, will be a per annum rate
equal to (a) a fraction, expressed as a percentage, (a) the numerator of which
is (1) the amount of interest

                                       20
<PAGE>

accrued on the Mortgage Loans for such date, minus (2) the Expense Fee, and (b)
the denominator of which is the product of (i) the Aggregate Collateral Balance
immediately preceding such Distribution Date (or as of the Cut-off Date in the
case of the first Distribution Date), multiplied by (ii)(x) in the case of the
Class B-1, Class B-2, Class B-3, Class A-R, Class A-RL and Class P Certificates,
1/12 and (y) in the case of the Class A-1, Class A-2, Class M-1 and Class M-2
Certificates, the actual number of days in the related Interest Accrual Period
divided by 360. For federal income tax purposes, however, as to any Distribution
Date will be the equivalent of the foregoing, expressed as a per annum rate
equal to the weighted average of the Uncertificated Pass-Through Rates on the
REMIC 2 Regular Interests (other than the REMIC 2 Regular Interest MTI-P and the
REMIC 2 Regular Interest MTI-R) multiplied by (in the case of the Class A-1,
Class A-2, Class M-1 and Class M-2 Certificates) 30 divided by the actual number
of days in the related Interest Accrual Period.

            Net Mortgage Rate: As to each Mortgage Loan, and at any time, the
per annum rate equal to the Mortgage Rate less the related Expense Fee Rate.

            Net Prepayment Interest Shortfalls: As to any Distribution Date, the
amount, if any, by which the aggregate of Prepayment Interest Shortfalls during
the Prepayment Period exceeds the Compensating Interest Payment for such
Distribution Date.

            Net Recovery: Any proceeds received by the Servicer on a delinquent
or Charged Off Loan (including any Liquidation Proceeds received on a Charged
Off Loan), net of any Servicing Fee, Ancillary Income and any other related
expenses.

            Nonrecoverable Advance: Any portion of an Advance or Servicing
Advance previously made or proposed to be made by the Servicer that, in the good
faith judgment of the Servicer, will not be ultimately recoverable by the
Servicer from the related Mortgagor, related Liquidation Proceeds or otherwise.

            Notional Amount: The Class X-1 Notional Amount.

            Notional Amount Certificates: As specified in the Preliminary
Statement.

            Offered Certificates: As specified in the Preliminary Statement.

            Officer's Certificate: A certificate signed by the Chairman of the
Board or the Vice Chairman of the Board or the President or a Vice President or
an Assistant Vice President or the Treasurer or the Secretary or one of the
Assistant Treasurers or Assistant Secretaries of the Servicer or the Depositor,
and delivered to the Depositor or the Trustee, as the case may be, as required
by this Agreement.

            Old Republic Covered Loan: A Mortgage Loan for which coverage is
available under the Credit Insurance Policy, as indicated on the Mortgage Loan
Schedule.

            Opinion of Counsel: A written opinion of counsel, who may be counsel
for the Depositor or the Servicer, including in-house counsel, reasonably
acceptable to the Trustee;

                                       21
<PAGE>

provided, however, that with respect to the interpretation or application of the
REMIC Provisions, such counsel must (i) in fact be independent of the Depositor
and the Servicer, (ii) not have any material direct financial interest in the
Depositor or the Servicer or in any affiliate of either, and (iii) not be
connected with the Depositor or the Servicer as an officer, employee, promoter,
underwriter, trustee, partner, director or person performing similar functions.

            Optional Termination: The termination of the trust created hereunder
in connection with the purchase of the Mortgage Loans pursuant to Section 9.01.

            Optional Termination Date: The first date on which the Optional
Termination may be exercised.

            Optional Termination Holder: Wilshire, as Servicer, or any successor
servicer appointed by the Seller, so long as the Seller is the owner of the
servicing rights.

            OTS: The Office of Thrift Supervision.

            Outsourcer: As defined in Section 3.02.

            Outstanding: With respect to the Certificates as of any date of
determination, all Certificates theretofore executed and authenticated under
this Agreement except: (i) Certificates theretofore canceled by the Trustee or
delivered to the Trustee for cancellation; and (ii) Certificates in exchange for
which or in lieu of which other Certificates have been executed and delivered by
the Trustee pursuant to this Agreement.

            Outstanding Mortgage Loan: As of any Due Date, a Mortgage Loan with
a Stated Principal Balance greater than zero which was not the subject of a
Payoff prior to such Due Date and which did not become a Liquidated Mortgage
Loan or Charged Off Loan prior to such Due Date.

            Overcollateralization Amount: For any Distribution Date, an amount
equal to the amount, if any, by which (x) the Aggregate Collateral Balance for
such Distribution Date exceeds (y) the aggregate Class Principal Balance of the
Certificates after giving effect to payments on such Distribution Date.

            Overcollateralization Release Amount: For any Distribution Date, an
amount equal to the lesser of (x) the Principal Remittance Amount for such
Distribution Date and (y) the amount, if any, by which (1) the
Overcollateralization Amount for such date, calculated for this purpose on the
basis of the assumption that 100% of the aggregate of the Principal Remittance
Amount and Excess Cashflow Loss Payment for such date is applied on such date in
reduction of the aggregate of the Class Principal Balances of the Certificates
(to an amount not less than zero), exceeds (2) the Targeted
Overcollateralization Amount for such date.

            Overfunded Interest Amount: With respect to any Subsequent Transfer
Date and the Subsequent Mortgage Loans, the excess of (A) the amount on deposit
in the Capitalized Interest Account on such date over (B) the excess of (i) the
amount of interest accruing at (x) the

                                       22
<PAGE>

assumed weighted average Pass-Through Rates of the Senior Certificates
multiplied by (y) the Pre-Funding Amount outstanding at the end of the related
Due Period for the total number of days remaining through the end of the
Interest Accrual Periods ending (a) November 26, 2004, (b) December 27, 2004 and
(c) January 25, 2004 over (ii) one month of investment earnings on the amount on
deposit in the Capitalized Interest Account on such date at an annual rate of
1.55%. The assumed weighted average Pass-Through Rate of the Senior Certificates
will be calculated assuming LIBOR is 1.91% for any Subsequent Transfer Date for
the Subsequent Mortgage Loans prior to the November 2004 Distribution Date,
2.31% for any Subsequent Transfer Date for the Subsequent Mortgage Loans prior
to the December 2004 Distribution Date and 2.71% for any Subsequent Transfer
Date for the Subsequent Mortgage Loans prior to the January 2005 Distribution
Date.

            Ownership Interest: As to any Residual 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.

            Par Value: As defined in Section 9.01 hereof; provided that the "Par
Value" for any Auction Date shall also include the auction expenses of the
Trustee (which auction expenses shall not exceed $25,000).

            Pass-Through Rate: With respect to the Class A-1, Class A-2, Class
A-R, Class A-RL, Class P, Class M-1, Class M-2, Class B-1, Class B-2 and Class
B-3 Certificates, the Class A-1 Pass-Through Rate, Class A-2 Pass-Through Rate,
Class A-R Pass-Through Rate, Class A-RL Pass-Through Rate, Class P Pass-Through
Rate, Class M-1 Pass-Through Rate, Class M-2 Pass-Through Rate, Class B-1
Pass-Through Rate, Class B-2 Pass-Through Rate and Class B-3 Pass-Through Rate.

With respect to the Class X-1 Certificates and any Distribution Date, a per
annum rate equal to the percentage equivalent of a fraction, the numerator of
which is the sum of the amounts calculated pursuant to clauses (A) through (I)
below, and the denominator of which is the aggregate of the Uncertificated
Principal Balances of REMIC 2 Regular Interest MTI-AA, REMIC 2 Regular Interest
MTI-A-1, REMIC 2 Regular Interest MTI-A-2, REMIC 2 Regular Interest MTI-M-1,
REMIC 2 Regular Interest MTI-M-2, REMIC 2 Regular Interest MTI-B-1, REMIC 2
Regular Interest MTI-B-2, REMIC 2 Regular Interest MTI-B-3 and REMIC 2 Regular
Interest MTI-ZZ. For purposes of calculating the Pass-Through Rate for the Class
X-1 Certificates, the numerator is equal to the sum of the following components:

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

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

                                       23
<PAGE>

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

            (D) the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
Interest MTI-M-1 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-M-1;

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

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

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

            (H) the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
Interest MTI-B-3 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-B-3; and

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

            Payahead: Any Scheduled Payment intended by the related Mortgagor to
be applied in a Due Period subsequent to the Due Period in which such payment
was received.

            Payoff: Any payment of principal on a Mortgage Loan equal to the
entire outstanding Stated Principal Balance of such Mortgage Loan, if received
in advance of the last scheduled Due Date for such Mortgage Loan and accompanied
by an amount of interest equal to accrued unpaid interest on the Mortgage Loan
to the date of such payment-in-full.

            Percentage Interest: As to any Certificate, the percentage interest
evidenced thereby in distributions required to be made on the related Class,
such percentage interest being set forth on the face thereof or equal to the
percentage obtained by dividing the Denomination of such Certificate by the
aggregate of the Denominations of all Certificates of the same Class.

            Permitted Transferee: Any person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality of
any of the foregoing, (ii) a foreign government, International Organization or
any agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code)
which is exempt from tax imposed by Chapter 1 of the Code (including the tax

                                       24
<PAGE>

imposed by section 511 of the Code on unrelated business taxable income) on any
excess inclusions (as defined in section 860E(c)(1) of the Code) with respect to
any Residual Certificate, (iv) rural electric and telephone cooperatives
described in section 1381(a)(2)(C) of the Code, (v) a Person that is not a
United States Person, and (vi) a Person designated as a non-Permitted Transferee
by the Depositor based upon an Opinion of Counsel that the Transfer of an
Ownership Interest in a Residual Certificate to such Person may cause any REMIC
created hereunder to fail to qualify as a REMIC at any time that the
Certificates are outstanding. The terms "United States," "State" and
"International Organization" shall have the meanings set forth in section 7701
of the Code or successor provisions. A corporation will not be treated as an
instrumentality of the United States or of any State or political subdivision
thereof for these purposes if all of its activities are subject to tax and, with
the exception of Freddie Mac, a majority of its board of directors is not
selected by such government unit.

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

            Physical Certificates: As specified in the Preliminary Statement.

            Pre-Funding Account: The separate Eligible Account created and
maintained by the Trustee with respect to the Mortgage Loans pursuant to Section
3.05(f) in the name of the Trustee for the benefit of the Certificateholders and
designated "JPMorgan Chase Bank, in trust for registered holders of Home Equity
Mortgage Pass-Through Certificates, Series 2004-5." Funds in the Pre-Funding
Account shall be held in trust for the Certificateholders for the uses and
purposes set forth in this Agreement and shall not be a part of any REMIC
created hereunder; provided, however, that any investment income earned from
Eligible Investments made with funds in the Pre-Funding Account shall be for the
account of the Depositor.

            Pre-Funding Amount: The amount deposited in the Pre-Funding Account
on the Closing Date, which shall equal $33,177,827.84.

            Pre-Funding Period: the period from the Closing Date until the
earliest of (i) the date on which the amount on deposit in the Pre-Funding
Account is reduced to zero, (ii) the date on which an Event of Default occurs or
(iii) January 24, 2004.

            Prepayment Charge: With respect to any Mortgage Loan, any charge
required to be paid if the Mortgagor prepays such Mortgage Loan as provided in
the related Mortgage Note or Mortgage.

            Prepayment Interest Shortfall: As to any Mortgage Loan, Distribution
Date and Principal Prepayment, other than Principal Prepayments in full that
occur during the portion of the Prepayment Period that is in the same calendar
month as the Distribution Date, the difference between (i) one full month's
interest at the applicable Mortgage Rate (giving effect to any applicable Relief
Act Reduction), as reduced by the Expense Fee Rate, on the Stated Principal
Balance of such Mortgage Loan immediately prior to such Principal Prepayment and
(ii) the

                                       25
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amount of interest actually received that accrued during the month immediately
preceding such Distribution Date or, with respect to any Mortgage Loan with a
Due Date other than the first of the month, the amount of interest actually
received that accrued during the one-month period immediately preceding the Due
Date following the Principal Prepayment, with respect to such Mortgage Loan in
connection with such Principal Prepayment.

            Prepayment Period: With respect to each Distribution Date (other
than the November 2004 Distribution Date), each Mortgage Loan and each Payoff,
the related "Prepayment Period" will be the 15th of the month preceding the
month in which the related Distribution Date occurs through the 14th of the
month in which the related Distribution Date occurs. With respect to the
November 2004 Distribution Date and each Payoff, the related "Prepayment Period"
will be October 1, 2004 through November 14, 2004. With respect to each
Distribution Date, each Mortgage Loan and each Curtailment, the related
"Prepayment Period" will be the calendar month preceding the month in which the
related Distribution Date occurs.

            Principal Payment Amount: For any Distribution Date, an amount equal
to the Principal Remittance Amount plus any Excess Cashflow Loss Payment for
such date, minus the Overcollateralization Release Amount, if any, for such
date.

            Principal Remittance Amount: For any Distribution Date, an amount
equal to the sum of (1) all principal collected (other than Payaheads) or
advanced in respect of Scheduled Payments on the Mortgage Loans during the
related Due Period (less unreimbursed Advances, Servicing Advances and other
amounts due to the Servicer and the Trustee with respect to the Mortgage Loans,
to the extent allocable to principal) and the principal portion of Payaheads
previously received and intended for application in the related Due Period, (2)
all Principal Prepayments on the Mortgage Loans received during the related
Prepayment Period, (3) the outstanding principal balance of each Mortgage Loan
that was repurchased by the Seller, the Optional Termination Holder or the
Majority in Interest Class X-2 Certificateholder during the calendar month
immediately preceding such Distribution Date, (4) the portion of any
Substitution Adjustment Amount paid with respect to any Deleted Mortgage Loans
during the calendar month immediately preceding such Distribution Date allocable
to principal, (5) all Liquidation Proceeds, and any Insurance Proceeds and other
recoveries (net of unreimbursed Advances, Servicing Advances and other expenses,
to the extent allocable to principal) and Net Recoveries collected with respect
to the Mortgage Loans during the prior calendar month, to the extent allocable
to principal and (6) with respect to the Distribution Date in January 2005, the
amount remaining in the Pre-Funding Account at the end of the Pre-Funding
Period.

            Principal Prepayment: Any payment of principal on a Mortgage Loan
which constitutes a Payoff or Curtailment.

            Prospectus Supplement: The Prospectus Supplement dated October 26,
2004 relating to the Offered Certificates.

            PUD: Planned Unit Development.

                                       26
<PAGE>

            Qualified Insurer: A mortgage guaranty insurance company duly
qualified as such under the laws of the state of its principal place of business
and each state having jurisdiction over such insurer in connection with the
insurance policy issued by such insurer, duly authorized and licensed in such
states to transact a mortgage guaranty insurance business in such states and to
write the insurance provided by the insurance policy issued by it, approved as a
Fannie Mae- or Freddie Mac-approved mortgage insurer or having a claims paying
ability rating of at least "AA" or equivalent rating by at least two nationally
recognized statistical rating organizations. Any replacement insurer with
respect to a Mortgage Loan must have at least as high a claims paying ability
rating as the insurer it replaces had on the Closing Date. Any replacement
insurer with respect to the Credit Insurance Policy must be acceptable to the
Rating Agencies as evidenced by written acknowledgment from each Rating Agency
that such replacement will not cause a reduction, withdrawal or cancellation of
the ratings of the Certificates.

            Qualified Substitute Mortgage Loan: A Mortgage Loan substituted by
the Seller for a Deleted Mortgage Loan which must, on the date of such
substitution, as confirmed in a Request for Release, substantially in the form
of Exhibit M (i) have a Stated Principal Balance, after deduction of the
principal portion of the Scheduled 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 principal balance), not in excess of, and not more
than 10% less than the Stated Principal Balance of the Deleted Mortgage Loan;
(ii) be accruing interest at a rate no lower than and not more than 1% per annum
higher than, that of the Deleted Mortgage Loan; (iii) have a Combined
Loan-to-Value Ratio no higher than that of the Deleted Mortgage Loan; (iv) have
a remaining term to maturity no greater than (and not more than one year less
than that of) the Deleted Mortgage Loan; and (v) comply with each representation
and warranty set forth in Section 2.03(f).

            Rating Agency: S&P and Moody's. If either such organization or a
successor is no longer in existence, "Rating Agency" shall be such nationally
recognized statistical rating organization, or other comparable Person, as is
designated by the Depositor, notice of which designation shall be given to the
Trustee and the Servicer. References herein to a given rating or rating category
of a Rating Agency shall mean such rating category without giving effect to any
modifiers.

            Ratings: As of any date of determination, the ratings, if any, of
the Certificates as assigned by the Rating Agencies.

            Realized Loss: With respect to each Liquidated Mortgage Loan, an
amount (not less than zero or greater than the Stated Principal Balance of the
Mortgage Loan) as of the date of such liquidation, equal to (i) the Stated
Principal Balance of the Liquidated Mortgage Loan as of the date of such
liquidation, plus (ii) interest at the Net Mortgage Rate from the related Due
Date as to which interest was last paid or advanced (and not reimbursed) to the
related Certificateholders up to the related Due Date in the month in which
Liquidation Proceeds are required to be distributed on the Stated Principal
Balance of such Liquidated Mortgage Loan from time to time, minus (iii) the
Liquidation Proceeds, if any, received during the month in which such
liquidation occurred, to the extent applied as recoveries of interest at the Net

                                       27
<PAGE>

Mortgage Rate and to principal of the Liquidated Mortgage Loan. Any Charged Off
Loan will give rise to a Realized Loss (calculated as if clause (iii) of the
previous sentence is equal to zero) at the time it is charged off, as described
in Section 3.11(a)(iii) hereof.

            If the Servicer receives Net Recoveries with respect to any Charged
Off Loan, the amount of the Realized Loss with respect to that Charged Off Loan
will be reduced to the extent such recoveries are applied to principal
distributions on any Distribution Date.

            Record Date: With respect to the Certificates (other than the Class
A-1, Class A-2, Class M-1 and Class M-2 Certificates which are Book-Entry
Certificates) and any Distribution Date, the close of business on the last
Business Day of the month preceding the month in which such applicable
Distribution Date occurs. With respect to the Class A-1, Class A-2, Class M-1
and Class M-2 Certificates which are Book-Entry Certificates and any
Distribution Date, the close of business on the Business Day preceding such
Distribution Date.

            Reference Bank Rate: With respect to any Interest Accrual Period, as
follows: the arithmetic mean (rounded upwards, if necessary, to the nearest one
sixteenth of a percent) of the offered rates for United States dollar deposits
for one month which are offered by the Reference Banks as of 11:00 A.M., London,
England time, on the second LIBOR Business Day prior to the first day of such
Interest Accrual Period to prime banks in the London interbank market for a
period of one month in amounts approximately equal to the aggregate Class
Principal Balance of the LIBOR Certificates; provided that at least two such
Reference Banks provide such rate. If fewer than two offered rates appear, the
Reference Bank Rate will be the arithmetic mean of the rates quoted by one or
more major banks in New York City, selected by the Trustee, as of 11:00 a.m.,
New York 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 Class
Principal Balance of the LIBOR Certificates. If no such quotations can be
obtained, the Reference Bank Rate shall be LIBOR applicable to the preceding
Distribution Date; provided however, that if, under the priorities indicated
above, LIBOR for a Distribution Date would be based on LIBOR for the previous
Payment Date for the third consecutive Distribution Date, the Trustee shall
select an alternative comparable index over which the Trustee has no control,
used for determining one-month Eurodollar lending rates that is calculated and
published or otherwise made available by an independent party.

            Reference Banks: Barclays Bank PLC, National Westminster Bank and
Abbey National PLC.

            Regular Certificates: As specified in the Preliminary Statement.

            Released Loan: Any Charged Off Loan that is released by Wilshire to
the Class X-2 Certificateholders pursuant to Section 3.11(a), generally on the
date that is six months after the date on which Wilshire begins using Wilshire
Special Servicing on such Charged Off Loans. Any Released Loan will no longer be
an asset of any REMIC or the Trust Fund.

                                       28
<PAGE>

            Relief Act: The Servicemembers Civil Relief Act or any similar state
law or regulation.

            Relief Act Reductions: With respect to any Distribution Date and any
Mortgage Loan as to which there has been a reduction in the amount of interest
or principal collectible thereon (attributable to any previous month) as a
result of the application of the Relief Act or similar state law or regulation,
the amount, if any, by which (i) interest and/or principal collectible on such
Mortgage Loan for the most recently ended calendar month is less than (ii)
interest and/or principal accrued thereon for such month pursuant to the
Mortgage Note.

            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, constituting
the primary trust created hereby and to be administered hereunder, with respect
to which a REMIC election is to be made consisting of: (i) such Mortgage Loans
as from time to time are subject to this Agreement (other than any Prepayment
Charges), together with the Mortgage Files relating thereto, and together with
all collections thereon and proceeds thereof, (ii) any REO Property, together
with all collections thereon and proceeds thereof, (iii) the Credit Insurance
Policy, (iv) the Trustee's rights with respect to the Mortgage Loans under all
insurance policies, including any Primary Insurance Policy, required to be
maintained pursuant to this Agreement and any proceeds thereof and, (v) the
Collection Account and the Certificate Account (subject to the last sentence of
this definition) and such assets that are deposited therein from time to time
and any investments thereof. Notwithstanding the foregoing, however, a REMIC
election will not be made with respect to the Pre-Funding Account or the
Capitalized Interest Account.

            REMIC 1 Regular Interest LTI-1: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTI-1 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.

            REMIC 1 Regular Interest LTI-PF: One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a Regular Interest in REMIC 1. REMIC 1 Regular Interest LTI-PF
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.

            REMIC 1 Regular Interest LTI-P: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTI-P 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

                                       29
<PAGE>

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.

            REMIC 1 Regular Interest LTI-R: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTI-R 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.

            REMIC 1 Regular Interests: REMIC 1 Regular Interest LTI-1, LTI-PF,
LTI-P and LTI-R.

            REMIC 2: The segregated pool of assets consisting of all of the
REMIC 1 Regular Interests conveyed in the trust to the Trustee, for the benefit
of the Holders of the REMIC 2 Regular Interests and the Class A-R Certificates
(in respect 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) the aggregate
Stated 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 MT-AA minus the Marker Rate, divided by (b) 12.

            REMIC 2 Net WAC Rate: With respect to any Distribution Date, a per
annum rate equal to the weighted average of the Uncertificated REMIC 1
Pass-Through Rates on the REMIC 1 Regular Interest LTI-1 and REMIC 1 Regular
Interest LTI-1PF, weighted on the basis of such respective Uncertificated
Principal Balances thereof immediately preceding such Distribution Date.

            REMIC 2 Overcollateralization Amount: With respect to any date of
determination, (i) 1% of the aggregate Uncertificated Principal Balances of the
REMIC 2 Regular Interests minus (ii) the aggregate Uncertificated Principal
Balances of REMIC 2 Regular Interests MTI-A-1, MTI-A-2, MTI-M-1, MTI-M-2,
MTI-B-1, MTI-B-2, MTI-B-3, MTI-R and MTI-P, in each case as of such date of
determination.

            REMIC 2 Principal Loss Allocation Amount: With respect to any
Distribution Date, an amount equal to the product of (i) the aggregate Stated
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 Uncertificated Principal Balance of REMIC 2 Regular Interests MTI-A-1,
MTI-A-2, MTI-M-1, MTI-M-2, MTI-B-1, MTI-B-2 and MTI-B-3 and the denominator of
which is the aggregate Uncertificated Principal Balance of REMIC 2 Regular
Interests MTI-A-1, MTI-A-2, MTI-M-1, MTI-M-2, MTI-B-1, MTI-B-2, MTI-B-3 and
MTI-ZZ.

                                       30
<PAGE>

            REMIC 2 Regular Interest MTI-AA: One of the separate
non-certificated beneficial ownership interests in REMIC 2 issued hereunder and
designated as a Regular Interest in REMIC 2. REMIC 2 Regular Interest MTI-AA
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,
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 MTI-A-1: One of the separate
non-certificated beneficial ownership interests in REMIC 2 issued hereunder and
designated as a Regular Interest in REMIC 2. REMIC 2 Regular Interest MTI-A-1
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,
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 MTI-A-2: One of the separate
non-certificated beneficial ownership interests in REMIC 2 issued hereunder and
designated as a Regular Interest in REMIC 2. REMIC 2 Regular Interest MTI-A-2
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,
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 MTI-M-1: One of the separate
non-certificated beneficial ownership interests in REMIC 2 issued hereunder and
designated as a Regular Interest in REMIC 2. REMIC 2 Regular Interest MTI-M-1
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,
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 MTI-M-2: One of the separate
non-certificated beneficial ownership interests in REMIC 2 issued hereunder and
designated as a Regular Interest in REMIC 2. REMIC 2 Regular Interest MTI-M-2
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,
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 MTI-B-1: One of the separate
non-certificated beneficial ownership interests in REMIC 2 issued hereunder and
designated as a Regular Interest in REMIC 2. REMIC 2 Regular Interest MTI-B-1
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,
subject to the terms and conditions hereof, in an aggregate amount

                                       31
<PAGE>

equal to its initial Uncertificated Principal Balance as set forth in the
Preliminary Statement hereto.

            REMIC 2 Regular Interest MTI-B-2: One of the separate
non-certificated beneficial ownership interests in REMIC 2 issued hereunder and
designated as a Regular Interest in REMIC 2. REMIC 2 Regular Interest MTI-B-2
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,
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 MTI-B-3: One of the separate
non-certificated beneficial ownership interests in REMIC 2 issued hereunder and
designated as a Regular Interest in REMIC 2. REMIC 2 Regular Interest MTI-B-3
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,
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 MTI-P: One of the separate non-certificated
beneficial ownership interests in REMIC 2 issued hereunder and designated as a
Regular Interest in REMIC 2. REMIC 2 Regular Interest MTI-P 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, 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 MTI-R: One of the separate non-certificated
beneficial ownership interests in REMIC 2 issued hereunder and designated as a
Regular Interest in REMIC 2. REMIC 2 Regular Interest MTI-R 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, 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 MTI-ZZ: One of the separate
non-certificated beneficial ownership interests in REMIC 2 issued hereunder and
designated as a Regular Interest in REMIC 2. REMIC 2 Regular Interest MTI-ZZ
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,
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 MTI-ZZ Maximum Interest Deferral Amount:
With respect to any Distribution Date, the excess of (i) REMIC 2 Uncertificated
Accrued Interest calculated with the Uncertificated Pass-Through Rate for REMIC
2 Regular Interest MTI-ZZ and an Uncertificated Principal Balance equal to the
excess of (x) the Uncertificated Principal

                                       32
<PAGE>

Balance of REMIC 2 Regular Interest MTI-ZZ over (y) the REMIC 2
Overcollateralization Amount, in each case for such Distribution Date, over (ii)
the sum of REMIC 2 Uncertificated Accrued Interest on REMIC 2 Regular Interests
MTI-A-1, MTI-A-2, MTI-M-1, MTI-M-2, MTI-B-1, MTI-B-2 and MTI-B-3, with the rates
on REMIC 2 Regular Interests MTI-A-1, MTI-A-2, MTI-M-1 and MTI-M-2 subject to a
cap equal to the lesser of (A) LIBOR plus the Certificate Margin relating to the
Corresponding Uncertificated Interest and (B) the REMIC 2 Net WAC Rate for the
purpose of this calculation for such Distribution Date, with the rate on the
REMIC 2 Regular Interest MTI-B-1 subject to a cap, for purposes of this
calculation, equal to the lesser of (A) 5.750% per annum on or prior to the
Optional Termination Date and 6.250% per annum after the Optional Termination
Date and (B) the REMIC 2 Net WAC Rate, with the rate on the REMIC 2 Regular
Interest MTI-B-2 subject to a cap, for purposes of this calculation, equal to
the lesser of (A) 5.880% per annum on or prior to the Optional Termination Date
and 6.380% per annum after the Optional Termination Date and (B) the REMIC 2 Net
WAC Rate, with the rate on the REMIC 2 Regular Interest MTI-B-3 subject to a
cap, for purposes of this calculation, equal to the lesser of (A) 6.920% per
annum on or prior to the Optional Termination Date and 7.420% per annum after
the Optional Termination Date and (B) the REMIC 2 Net WAC Rate and with the rate
on the REMIC 2 Regular Interest MTI-ZZ subject to a cap, for the purpose of this
calculation, equal to zero.

            REMIC 2 Regular Interests: REMIC 2 Regular Interest MTI-AA, REMIC 2
Regular Interest MTI-A-1, REMIC 2 Regular Interest MTI-A-2, REMIC 2 Regular
Interest MTI-M-1, REMIC 2 Regular Interest MTI-M-2, REMIC 2 Regular Interest
MTI-B-1, REMIC 2 Regular Interest MTI-B-2, REMIC 2 Regular Interest MTI-B-3,
REMIC 2 Regular Interest MTI-ZZ, REMIC 2 Regular Interest MTI-P and REMIC 2
Regular Interest MTI-R.

            REMIC 2 Targeted Overcollateralization Amount: 1% of the Targeted
Overcollateralization Amount.

            REMIC 3: The segregated pool of assets consisting of all of the
REMIC 2 Regular Interests conveyed in the trust to the Trustee, for the benefit
of the Holders of the Regular Certificates and the Class A-R Certificates (in
respect of the Class R-3 Interest), and all amounts deposited therein, with
respect to which a separate REMIC election is to be made.

            REMIC 3 Regular Interests: The Regular Certificates.

            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 regulations promulgated thereunder, as the foregoing may be in effect from
time to time.

            REMIC Regular Interests: The REMIC 1 Regular Interests, REMIC 2
Regular Interests and the Regular Certificates.

                                       33
<PAGE>

            REO Property: A Mortgaged Property acquired by the Trust Fund
through foreclosure or deed-in-lieu of foreclosure in connection with a
defaulted Mortgage Loan and, for the avoidance of doubt, following the
satisfaction of any related First Mortgage Loan.

            Repurchase Price: With respect to any Mortgage Loan required to be
purchased by the Seller pursuant to this Agreement or purchased at the option of
the Majority in Interest Holder of the Class X-2 Certificates pursuant to this
Agreement, an amount equal to the sum of (i) 100% of the unpaid principal
balance of the Mortgage Loan on the date of such purchase, (ii) accrued unpaid
interest thereon at the applicable Mortgage Rate from the date through which
interest was last paid by the Mortgagor to the Due Date in the month in which
the Repurchase Price is to be distributed to Certificateholders, (iii) any
unreimbursed Servicing Advances and (iv) any costs and damages actually incurred
and paid by or on behalf of the Trust (including, but not limited to late fees)
in connection with any breach of the representation and warranty set forth in
clause (xx) of Schedule IV hereto as the result of a violation of a predatory or
abusive lending law applicable to such Mortgage Loan.

            Request for Release: The Request for Release submitted by the
Servicer to the Trustee, substantially in the form of Exhibit M.

            Required Insurance Policy: With respect to any Mortgage Loan, any
insurance policy that is required to be maintained from time to time under this
Agreement.

            Residual Certificates: As specified in the Preliminary Statement.

            Responsible Officer: When used with respect to the Trustee, any Vice
President, any Assistant Vice President, any Assistant Secretary, any Trust
Officer or any other officer of the Trustee customarily performing functions
similar to those performed by any of the above designated officers and also to
whom, with respect to a particular matter, such matter is referred because of
such officer's knowledge of and familiarity with the particular subject and who
shall have direct responsibility for the administration of this Agreement.

            Rolling Three Month Delinquency Rate: For any Distribution Date will
be the fraction, expressed as a percentage, equal to the average of the
Delinquency Rates for each of the three (or one and two, in the case of the
first and second Distribution Dates, respectively) immediately preceding months.

            SAIF: The Savings Association Insurance Fund, or any successor
thereto.

            S&P: Standard & Poor's, a division of The McGraw-Hill Companies,
Inc. For purposes of Section 10.05(b) the address for notices to S&P shall be
Standard & Poor's, 55 Water Street, New York, New York 10004, Attention:
Mortgage Surveillance Monitoring, or such other address as S&P may hereafter
furnish to the Depositor, the Servicer and the Trustee.

            Scheduled Payment: The scheduled monthly payment on a Mortgage Loan
due on any Due Date allocable to principal and/or interest on such Mortgage Loan
pursuant to the terms of the related Mortgage Note, as reduced by any Relief Act
Reductions.

                                       34
<PAGE>

            Second Mortgage Loan: A Mortgage Loan that is secured by a second
lien on the Mortgaged Property securing the related Mortgage Note.

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

            Seller: DLJ Mortgage Capital, Inc.

            Senior Certificates: As specified in the Preliminary Statement.

            Senior Enhancement Percentage: For any Distribution Date, the
fraction, expressed as a percentage, the numerator of which is the sum of the
aggregate Class Principal Balance of the Class M-1, Class M-2, Class B-1, Class
B-2 and Class B-3 Certificates and the Overcollateralization Amount (which, for
purposes of this definition only, shall not be less than zero), in each case
after giving effect to payments on such Distribution Date (assuming no Trigger
Event is in effect), and the denominator of which is the Aggregate Collateral
Balance for such Distribution Date.

            Senior Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event is not in effect with
respect to such Distribution Date, will be the amount, if any, by which (x) the
aggregate Class Principal Balance of the Class A-1, Class A-2, Class P, Class
A-R and Class A-RL Certificates immediately prior to such Distribution Date
exceeds (y) the lesser of (A) the product of (i) 51.50% and (ii) the Aggregate
Collateral Balance for such Distribution Date and (B) the amount, if any, by
which (i) the Aggregate Collateral Balance for such Distribution Date exceeds
(ii) 0.50% of the Aggregate Collateral Balance as of the Cut-off Date.

            Servicer: Wilshire, or its successors in interest, or any successor
servicer appointed as provided herein.

            Servicer Employee: As defined in Section 3.18.

            Servicer Cash Remittance Date: With respect to each Distribution
Date, the Business Day immediately preceding such Distribution Date.

            Servicer Data Remittance Date: With respect to each Distribution
Date, the second Business Day immediately following the 15th day of the month of
such Distribution Date.

            Servicing Advance: All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in the performance by the Servicer of its
servicing obligations, including, but not limited to, the cost (including
reasonable attorneys' fees and disbursements) of (i) the inspection,
preservation, restoration and protection of a Mortgaged Property, (ii) any
expenses reimbursable to the Servicer pursuant to Section 3.11 and any
enforcement or judicial proceedings, including foreclosures, and 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 default management and similar

                                       35
<PAGE>

services, appraisal services and real estate broker services); (iv) any expenses
incurred by the Servicer in connection with obtaining an environmental
inspection or review pursuant to Section 3.11(a)(v) and (vi); (v) compliance
with the obligations under Section 3.01, 3.09 and 3.11(b); (vi) the cost of
obtaining any broker's price opinion in accordance with Section 3.11 hereof;
(vii) the costs of obtaining an Opinion of Counsel pursuant to Section 3.11(c)
hereof; (viii) expenses incurred in connection with any instrument of
satisfaction or deed of reconveyance as described in Section 3.12 hereof; and
(ix) expenses incurred in connection with the recordation of Assignments of
Mortgage.

            Servicing Fee: As to each Mortgage Loan and any Distribution Date,
an amount equal to one month's interest at the Servicing Fee Rate on the Stated
Principal Balance of such Mortgage Loan as of the Due Date in the month of such
Distribution Date (prior to giving effect to any Scheduled Payments due on such
Mortgage Loan on such Due Date), subject to reduction as provided in Section
3.05(b)(vi).

            Servicing Fee Rate: As to each Mortgage Loan, 0.50% per annum.

            Servicing Officer: Any representative of the 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 Servicer on the Closing Date pursuant to this Agreement, as
such list may from time to time be amended.

            Significant Net Recoveries: With respect to a defaulted Mortgage
Loan, a determination by the Servicer that either (A) the potential Net
Recoveries are anticipated to be greater than or equal to the sum of (i) the
total indebtedness of the senior lien on the related Mortgaged Property and (ii)
$10,000 (after anticipated expenses and attorneys' fees) or (B) the related
Mortgagor has shown a willingness and ability to pay over the previous six
months.

            Startup Day: October 28, 2004.

            Stated Principal Balance: As to any Mortgage Loan and Due Date, the
unpaid principal balance of such Mortgage Loan as of such Due Date as specified
in the amortization schedule at the time relating thereto (before any adjustment
to such amortization schedule by reason of any moratorium or similar waiver or
grace period) after giving effect to any previous Curtailments and Liquidation
Proceeds allocable to principal (other than with respect to any Liquidated
Mortgage Loan) and to the payment of principal due on such Due Date and
irrespective of any delinquency in payment by the related Mortgagor; provided,
however, for purposes of calculating the Servicing Fee and the Trustee Fee, the
Stated Principal Balance of any REO will be the unpaid principal balance
immediately prior to foreclosure.

            Stepdown Date: The date occurring on the later of (x) the
Distribution Date in November 2007 and (y) the first Distribution Date on which
the Senior Enhancement Percentage (calculated for this purpose after giving
effect to payments or other recoveries in respect of the Mortgage Loans during
the related Due Period but before giving effect to payments on the Certificates
on such Distribution Date) is greater than or equal to 48.50%.

                                       36
<PAGE>

            Subordinate Certificates: As specified in the Preliminary Statement.

            Subsequent Mortgage Loan: Any Mortgage Loan other than an Initial
Mortgage Loan conveyed to the Trust Fund pursuant to Section 2.01 hereof and to
a Subsequent Transfer Agreement, which Mortgage Loan shall be listed on the
revised Mortgage Loan Schedule delivered pursuant to this Agreement and on
Schedule A to such Subsequent Transfer Agreement. When used with respect to a
single Subsequent Transfer Date, Subsequent Mortgage Loan shall mean a
Subsequent Mortgage Loan conveyed to the Trust on that Subsequent Transfer Date.

            Subsequent Mortgage Loan Interest: Any amount constituting an
Interest Remittance Amount (other than an amount withdrawn from the related
Capitalized Interest Account pursuant to clause (5) of the definition of
"Interest Remittance Amount") received or advanced with respect to a Subsequent
Mortgage Loan during the Due Periods relating to the November 2004, December
2004 or January 2005 Distribution Dates, but only to the extent of the excess of
such amount over the amount of interest accruing on such Subsequent Mortgage
Loan during the related period at a per annum rate equal to 2.29%, 2.81% and
3.28%, respectively. The Subsequent Mortgage Loan Interest shall not be an asset
of any REMIC.

            Subsequent Transfer Agreement: A Subsequent Transfer Agreement
substantially in the form of Exhibit N hereto, executed and delivered by the
Servicer, the Depositor, the Seller and the Trustee as provided in Section 2.01
hereof.

            Subsequent Transfer Date: For any Subsequent Transfer Agreement, the
date the related Subsequent Mortgage Loans are transferred to the Trust Fund
pursuant to the related Subsequent Transfer Agreement.

            Subservicer: Any Subservicer which is subservicing the Mortgage
Loans pursuant to a Subservicing Agreement. Any subservicer shall meet the
qualifications set forth in Section 3.02.

            Subservicing Agreement: An agreement between the Servicer and a
Subservicer for the servicing of the Mortgage Loans.

            Substitution Adjustment Amount: As defined in Section 2.03.

            Targeted Overcollateralization Amount: For any Distribution Date
prior to the Stepdown Date, 3.00% of the Aggregate Collateral Balance as of the
Cut-off Date; with respect to any Distribution Date on or after the Stepdown
Date and with respect to which a Trigger Event is not in effect, the greater of
(a) 6.00% of the Aggregate Collateral Balance for such Distribution Date, or (b)
0.50% of the Aggregate Collateral Balance as of the Cut-off Date; with respect
to any Distribution Date on or after the Stepdown Date with respect to which a
Trigger Event is in effect and is continuing, the Targeted Overcollateralization
Amount for the Distribution Date immediately preceding such Distribution Date.
Upon (x) written direction by the Majority in Interest Holder of the Class X-1
Certificates and (y) the issuance by an affiliate

                                       37
<PAGE>

of the Depositor of a credit enhancement contract in favor of REMIC 1 which is
satisfactory to the Rating Agencies and (z) receipt by the Trustee of an Opinion
of Counsel, which opinion shall not be an expense of the Trustee or the Trust
Fund, but shall be at the expense of the Majority in Interest Holder of the
Class X-1 Certificates, to the effect that such credit enhancement contract will
not cause the imposition of any federal tax on the Trust Fund or the
Certificateholders or cause REMIC 1, REMIC 2 and REMIC 3 to fail to qualify as a
REMIC at any time that any Certificates are outstanding, the Targeted
Overcollateralization Amount shall be reduced to the level approved by the
Rating Agencies as a result of such credit enhancement contract. Any credit
enhancement contract referred to in the previous sentence shall be
collateralized by cash or mortgage loans, provided that (i) the aggregate Stated
Principal Balance of the mortgage loans collateralizing any such credit
enhancement contract shall not be less than the excess, if any, of (x) the
initial Targeted Overcollateralization Amount over (y) the then-current
Overcollateralization Amount and (ii) the issuance of any credit enhancement
contract supported by mortgage loans shall not result in a downgrading of the
ratings assigned by the Rating Agencies.

            Tax Matters Person: The person designated as "tax matters person" in
the manner provided under Treasury regulation ss. 1.860F-4(d) and temporary
Treasury regulation ss. 301.6231(a)(7)-1T.

            Transfer: Any direct or indirect transfer or sale of any Ownership
Interest in a Residual Certificate.

            Trigger Event: A Trigger Event will be in effect for any
Distribution Date on or after the Stepdown Date if (a) the Rolling Three Month
Delinquency Rate as of the last day of the related Due Period equals or exceeds
16.50% of the Senior Enhancement Percentage for such Distribution Date or (ii) a
Cumulative Loss Event is occurring. The Trigger Event may be amended by the
parties hereto in the future with the consent of the Rating Agencies.

            Trust Collateral: As defined in Section 9.01(c).

            Trust Fund: Collectively, the assets of REMIC 1, REMIC 2, REMIC 3,
the Pre-Funding Account, the Capitalized Interest Account and the Subsequent
Mortgage Loan Interest.

            Trustee: JPMorgan Chase Bank and its successors and, if a successor
trustee is appointed hereunder, such successor.

            Trustee Fee: As to each Mortgage Loan and any Distribution Date, an
amount equal to one month's interest at the Trustee Fee Rate on the Stated
Principal Balance of such Mortgage Loan as of the Due Date in the month of such
Distribution Date (prior to giving effect to any Scheduled Payments due on such
Mortgage Loan on such Due Date).

            Trustee Fee Rate: With respect to any Distribution Date, 0.0100% per
annum.

            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

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<PAGE>

Pass-Through Rate on the Uncertificated Principal Balance of such REMIC Regular
Interest. In each case, Uncertificated Accrued Interest will be reduced by any
Net Prepayment Interest Shortfalls and Relief Act Reductions (allocated to such
REMIC Regular Interests based on the priorities set forth in Section 1.03).

            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 of such REMIC Regular Interest. In each case, Uncertificated Accrued
Interest will be reduced by any Net Prepayment Interest Shortfalls and Relief
Act Reductions (allocated to such REMIC Regular Interests based on the
priorities set forth in Section 1.03).

            Uncertificated Principal Balance: With respect to each REMIC Regular
Interest, the amount of such REMIC Regular Interest outstanding as of any date
of determination. As of the Closing Date, the Uncertificated Principal Balance
of each 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 REMIC
Regular Interest shall be reduced by all distributions of principal made on such
REMIC Regular Interest on such Distribution Date pursuant to Section 4.07 and,
if and to the extent necessary and appropriate, shall be further reduced on such
Distribution Date by Realized Losses as provided in Section 4.05(b) , and the
Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-ZZ shall be
increased by interest deferrals as provided in Section 4.07. The Uncertificated
Principal Balance of each REMIC Regular Interest that has an Uncertificated
Principal Balance shall never be less than zero.

            Uncertificated REMIC 1 Pass-Through Rate: With respect to each REMIC
1 Regular Interest (other than REMIC 1 Regular Interest LTI-1PF) and the
Interest Accrual Periods in November 2004, December 2004 and January 2005, a per
annum rate equal to the Initial Mortgage Loan Net WAC Rate; with respect to
REMIC 1 Regular Interest LTI-1PF and the Interest Accrual Periods in (a)
November 2004, (b) December 2004 and (c) January 2005, a per annum rate equal to
(a) 2.29%, (b) 2.81% and (c) 3.28%; and with respect to each REMIC 1 Regular
Interest and each Interest Accrual Period thereafter, the weighted average of
the Net Mortgage Rates on the Mortgage Loans.

            Uncertificated REMIC 2 Pass-Through Rate: For any Distribution Date,
with respect to REMIC 2 Regular Interest MTI-AA, REMIC 2 Regular Interest
MTI-A-1, REMIC 2 Regular Interest MTI-A-2, REMIC 2 Regular Interest MTI-M-1,
REMIC 2 Regular Interest MTI-M-2, REMIC 2 Regular Interest MTI-B-1, REMIC
Regular Interest B-2, REMIC Regular Interest B-3 and REMIC 2 Regular Interest
MTI-ZZ, the REMIC 2 Net WAC Rate, and for any Distribution Date with respect to
REMIC 2 Regular Interest MT-P and REMIC 2 Regular Interest MT-R, in November
2004, December 2004 and January 2005, the Initial Mortgage Loan Net WAC, and for
any Distribution Date thereafter, the REMIC 2 Net WAC Rate.

                  Uncertificated Principal Balance: With respect to each REMIC
Regular Interest, the amount of such REMIC Regular Interest outstanding as of
any date of determination. As of

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<PAGE>

the Closing Date, the Uncertificated Principal Balance of each 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 REMIC Regular Interest shall be reduced
by all distributions of principal made on such REMIC Regular Interest on such
Distribution Date pursuant to Section 4.07 and, if and to the extent necessary
and appropriate, shall be further reduced on such Distribution Date by Realized
Losses as provided in Section 4.05(b), and the Uncertificated Principal Balances
of REMIC 1 Regular Interest LTI-PF shall be increased, pro rata, by interest
deferrals as provided in Section 4.07. The Uncertificated Principal Balance of
each REMIC Regular Interest that has an Uncertificated Principal Balance shall
never be less than zero.

            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 A-R Certificates and Class A-RL 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 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, which have not yet been issued, 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 the
Certificates that is allocated to any Certificate for purposes of the voting
provisions of this Agreement. At all times during the term of this Agreement,
98% of all Voting Rights shall be allocated among the Class A-1, Class A-2,
Class M-1, Class M-2, Class B-1, Class B-2 and Class B-3 Certificates. The
portion of such 98% Voting Rights allocated to the Class A-1, Class A-2, Class
M-1, Class M-2, Class B-1, Class B-2 and Class B-3 Certificates shall be based
on the fraction, expressed as a percentage, the numerator of which is the
aggregate Class Principal Balance then outstanding and the denominator of which
is the Class Principal Balance of all such Classes then outstanding. The Class P
Certificates and Class X-1 Certificates shall each be allocated 1% of the Voting
Rights. Voting Rights shall be allocated among the Certificates within each such
Class (other than the Class P Certificates and Class X-1 Certificates, which
each have only one certificate) in accordance with their respective Percentage
Interests. The Class X-2, Class A-R and Class A-RL Certificates shall have no
Voting Rights.

            Wilshire: Wilshire Credit Corporation.

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<PAGE>

            Wilshire Special Servicing: With regard to any Charged Off Loans,
the servicing of such Charged Off Loans using specialized collection procedures
(including foreclosure, if appropriate) to maximize recoveries.

            SECTION 1.02 Interest Calculations.

            The calculation of the Trustee Fee, the Servicing Fee, the Credit
Risk Manager Fee, the Credit Insurance Provider Fee and interest on the Class
B-1, Class B-2, Class B-3, Class P, Class A-R, Class A-RL and Class X-1
Certificates and on the related Uncertificated Interests shall be made on the
basis of a 360-day year consisting of twelve 30-day months. The calculation of
interest on the Class A-1, Class A-2, Class M-1 and Class M-2 Certificates and
the related Uncertificated Interests shall be made on the basis of a 360-day
year and the actual number of days elapsed in the related Interest Accrual
Period. All dollar amounts calculated hereunder shall be rounded to the nearest
penny with one-half of one penny being rounded down.

            SECTION 1.03 Allocation of Certain Interest Shortfalls.

            For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC 1 Regular Interests for any Distribution Date, the
aggregate amount of any Prepayment Interest Shortfalls (net of any Compensating
Interest Payment) and any Relief Act Reductions incurred in respect of the
Mortgage Loans for any Distribution Date shall be allocated first to REMIC 1
Regular Interests LTI-1 and LTI-PF and then to REMIC 1 Regular Interests LTI-P
and LTI-R, in each case to the extent of one month's interest at the then
applicable respective Uncertificated REMIC 1 Pass-Through Rate on the respective
Uncertificated Principal Balance of each such Uncertificated REMIC 1 Regular
Interest; provided, however, that with respect to the first three Distribution
Dates, such amounts relating to the Initial Mortgage Loans shall be allocated to
REMIC 1 Regular Interest LTI-1 and such amounts relating to the Subsequent
Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT-PF.

            For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC 2 Regular Interests for any Distribution Date, any
Prepayment Interest Shortfalls (to the extent not covered by Compensating
Interest) relating to the Mortgage Loans for any Distribution Date shall be
allocated in the same priority, and to the same extent, as that allocated to the
Corresponding Certificates.

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<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                         REPRESENTATIONS AND WARRANTIES

            SECTION 2.01 Conveyance of Mortgage Loans.

            (a) The Depositor, concurrently with the execution and delivery
hereof, hereby sells, transfers, assigns, sets over and otherwise conveys to the
Trustee in trust for the benefit of the Certificateholders, without recourse,
all (i) the right, title and interest of the Depositor (which does not include
servicing rights) in and to each Initial Mortgage Loan, including all interest
and principal received or receivable on or with respect to such Initial Mortgage
Loans after the Cut-off Date and all interest and principal payments on the
Initial Mortgage Loans received prior to the Cut-off Date in respect of
installments of interest and principal due thereafter, but not including
payments of principal and interest due and payable on the Initial Mortgage Loans
on or before the Cut-off Date (other than the rights of the Servicer to service
the Mortgage Loans in accordance with this Agreement), (ii) the Depositor's
rights under the Assignment Agreement (iii) any such amounts as may be deposited
into and held by the Trustee in the Pre-Funding Account and the Capitalized
Interest Account and (iv) all proceeds of any of the foregoing. In addition, on
or prior to the Closing Date, the Depositor shall cause the Credit Insurance
Provider to deliver the Credit Insurance Policy to the Trustee.

            (b) In connection with the transfer and assignment set forth in
clause (a) above, the Depositor has delivered or caused to be delivered to the
Trustee or its designated agent, the Custodian, for the benefit of the
Certificateholders, the documents and instruments with respect to each Mortgage
Loan as assigned:

            (i) the original Mortgage Note of the Mortgagor in the name of the
      Trustee or endorsed "Pay to the order of ________________ without
      recourse" and signed in the name of the last named endorsee by an
      authorized officer, together with all intervening endorsements showing a
      complete chain of endorsements from the originator of the related Mortgage
      Loan to the last endorsee or with respect to any Lost Mortgage Note (as
      such term is defined in the Pooling and Servicing Agreement), a lost note
      affidavit stating that the original Mortgage Note was lost or destroyed,
      together with a copy of such Mortgage Note;

            (ii) for each Mortgage Loan that is not a MERS Mortgage Loan, the
      original Mortgage bearing evidence that such instruments have been
      recorded in the appropriate jurisdiction where the Mortgaged Property is
      located as determined by DLJMC (or, in lieu of the original of the
      Mortgage or the assignment thereof, a duplicate or conformed copy of the
      Mortgage or the instrument of assignment, if any, together with a
      certificate of receipt from the Seller or the settlement agent who handled
      the closing of the Mortgage Loan, certifying that such copy or copies
      represent true and correct copy(ies) of the original(s) and that such
      original(s) have been or are currently submitted to be

                                       42
<PAGE>

      recorded in the appropriate governmental recording office of the
      jurisdiction where the Mortgaged Property is located) or a certification
      or receipt of the recording authority evidencing the same and in the case
      of each MERS Mortgage Loan, the original Mortgage, noting the presence of
      the MIN of the related Mortgage Loan and either language indicating that
      the Mortgage Loan is a MOM Loan if 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 or a copy of the Mortgage certified by the public recording office
      in which such Mortgage has been recorded;

            (iii) for each Mortgage Loan that is not a MERS Mortgage Loan, the
      original Assignment of Mortgage, in blank, which assignment appears to be
      in form and substance acceptable for recording and, in the event that the
      related Seller acquired the Mortgage Loan in a merger, the assignment must
      be by "[Seller], successor by merger to [name of predecessor]", and in the
      event that the Mortgage Loan was acquired or originated by the related
      Seller while doing business under another name, the assignment must be by
      "[Seller], formerly known as [previous name]";

            (iv) for each Mortgage Loan, at any time that such Mortgage Loan is
not a MERS Mortgage Loan, the originals of all intervening Assignments of
Mortgage not included in (iii) above showing a complete chain of assignment from
the originator of such Mortgage Loan to the Person assigning the Mortgage to the
Trustee, including any warehousing assignment, with evidence of recording on
each such Assignment of Mortgage (or, in lieu of the original of any such
intervening assignment, a duplicate or conformed copy of such intervening
assignment together with a certificate of receipt from the related Seller or the
settlement agent who handled the closing of the Mortgage Loan, certifying that
such copy or copies represent true and correct copy(ies) of the original(s) and
that such original(s) have been or are currently submitted to be recorded in the
appropriate governmental recording office of the jurisdiction where the
Mortgaged Property is located) or a certification or receipt of the recording
authority evidencing the same;

            (v) an original of any related security agreement (if such item is a
      document separate from the Mortgage) and the originals of any intervening
      assignments thereof showing a complete chain of assignment from the
      originator of the related Mortgage Loan to the last assignee;

            (ii) an original assignment of any related security agreement (if
      such item is a document separate from the Mortgage) executed by the last
      assignee in blank;

            (vii) the originals of any assumption, modification, extension or
      guaranty agreement with evidence of recording thereon, if applicable (or,
      in lieu of the original of any such agreement, a duplicate or conformed
      copy of such agreement together with a certificate of receipt from the
      related Seller or the settlement agent who handled the closing of the
      Mortgage Loan, certifying that such copy(ies) represent true and correct

                                       43
<PAGE>

      copy(ies) of the original(s) and that such original(s) have been or are
      currently submitted to be recorded in the appropriate governmental
      recording office of the jurisdiction where the Mortgaged Property is
      located), or a certification or receipt of the recording authority
      evidencing the same;

            (viii) if the Mortgage Note or Mortgage or any other document or
      instrument relating to the Mortgage Loan has been signed by a person on
      behalf of the Mortgagor, the original power of attorney or other
      instrument that authorized and empowered such person to sign bearing
      evidence that such instrument has been recorded, if so required, in the
      appropriate jurisdiction where the Mortgaged Property is located as
      determined by DLJMC (or, in lieu thereof, a duplicate or conformed copy of
      such instrument, together with a certificate of receipt from the related
      Seller or the settlement agent who handled the closing of the Mortgage
      Loan, certifying that such copy(ies) represent true and complete
      copy(ies)of the original(s) and that such original(s) have been or are
      currently submitted to be recorded in the appropriate governmental
      recording office of the jurisdiction where the Mortgaged Property is
      located) or a certification or receipt of the recording authority
      evidencing the same; and

            (ix) in the case of the First Mortgage Loans, the original mortgage
      title insurance policy, or if such mortgage title insurance policy has not
      yet been issued, an original or copy of a marked-up written commitment or
      a pro forma title insurance policy marked as binding and countersigned by
      the title insurance company or its authorized agent either on its face or
      by an acknowledged closing instruction or escrow letter.

            In the event the Seller delivers to the Trustee certified copies of
any document or instrument set forth in 2.01(b) because of a delay caused by the
public recording office in returning any recorded document, the Seller shall
deliver to the Trustee, within 60 days of the Closing Date, an Officer's
Certificate which shall (i) identify the recorded document, (ii) state that the
recorded document has not been delivered to the Trustee due solely to a delay
caused by the public recording office, and (iii) state the amount of time
generally required by the applicable recording office to record and return a
document submitted for recordation.

            In the event that in connection with any Mortgage Loan the Depositor
cannot deliver (a) the original recorded Mortgage, (b) all interim recorded
assignments or (c) the lender's title policy (together with all riders thereto)
satisfying the requirements set forth above, concurrently with the execution and
delivery hereof because such document or documents have not been returned from
the applicable public recording office in the case of clause (a) or (b) above,
or because the title policy has not been delivered to the Seller or the
Depositor by the applicable title insurer in the case of clause (c) above, the
Depositor shall promptly deliver to the Trustee, in the case of clause (a) or
(b) above, such original Mortgage or such interim assignment, as the case may
be, with evidence of recording indicated thereon upon receipt thereof from the
public recording office, or a copy thereof, certified, if appropriate, by the
relevant recording office and in the case of clause (c) above, if such lender's
title policy is received by the Depositor, upon receipt thereof.

                                       44
<PAGE>

            As promptly as practicable subsequent to such transfer and
assignment, and in any event, within thirty (30) days thereafter, the Trustee
shall (at the Seller's expense) (i) affix the Trustee's name to each Assignment
of Mortgage, as the assignee thereof, (ii) cause such assignment to be in proper
form for recording in the appropriate public office for real property records
within thirty (30) days after receipt thereof and (iii) cause to be delivered
for recording in the appropriate public office for real property records the
assignments of the Mortgages to the Trustee, except that, with respect to any
assignment of a Mortgage as to which the Trustee has not received the
information required to prepare such assignment in recordable form, the
Trustee's obligation to do so and to deliver the same for such recording shall
be as soon as practicable after receipt of such information and in any event
within thirty (30) days after the receipt thereof, and the Trustee need not
cause to be recorded (a) any assignment referred to in clause (iii) above which
relates to a Mortgage Loan in any jurisdiction under the laws of which, as
evidenced by an Opinion of Counsel delivered to the Trustee (at the Depositor's
expense, provided such expense has been previously approved by the Depositor in
writing) within 180 days of the Closing Date, acceptable to the Rating Agencies,
the recordation of such assignment is not necessary to protect the Trustee's and
the Certificateholders' interest in the related Mortgage Loan or (b) if MERS is
identified on the Mortgage or on a properly recorded assignment of the Mortgage
as the mortgagee of record solely as nominee for the Seller and its successors
and assigns.

            In connection with the assignment of any Mortgage Loan registered on
the MERS(R) System, the Depositor further agrees that it will cause, at the
Depositor's own expense, on or prior to the Closing Date, the MERS(R) System to
indicate that such Mortgage Loans have been assigned by the Depositor 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 "[IDENTIFY TRUSTEE SPECIFIC CODE]" in the field "[IDENTIFY THE
FIELD NAME FOR TRUSTEE]" which identifies the Trustee and (b) the code
"[IDENTIFY SERIES SPECIFIC CODE NUMBER]" in the field "Pool Field" which
identifies the series of the Certificates issued in connection with such
Mortgage Loans. The Depositor further agrees that it will not, and will not
permit the Servicer to, and the Servicer agrees that it will not, 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.

            (c) The Trustee is authorized to appoint any bank or trust company
approved by the Depositor as Custodian of the documents or instruments referred
to in this Section 2.01, and to enter into a Custodial Agreement for such
purpose and any documents delivered thereunder shall be delivered to the
Custodian and any Officer's Certificates delivered with respect thereto shall be
delivered to the Trustee and the Custodian.

            (d) It is the express intent of the parties to this Agreement that
the conveyance of the Mortgage Loans by the Depositor to the Trustee as provided
in this Section 2.01 be, and be construed as, a sale of the Mortgage Loans by
the Depositor to the Trustee. It is, further, not the intention of the parties
to this Agreement that such conveyance be deemed a pledge of the

                                       45
<PAGE>
Mortgage Loans by the Depositor to the Trustee to secure a debt or other
obligation of the Depositor. However, in the event that, notwithstanding the
intent of the parties to this Agreement, the Mortgage Loans are held to be the
property of the Depositor, or if for any other reason this Agreement is held or
deemed to create a security interest in the Mortgage Loans then (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; (b) the conveyance
provided for in this Section 2.01 shall be deemed to be a grant by the Depositor
to the Trustee for the benefit of the Certificateholders of a security interest
in all of the Depositor's right, title and interest in and to the Mortgage Loans
and all amounts payable to the holders of the Mortgage Loans in accordance with
the terms thereof and all proceeds of the conversion, voluntary or involuntary,
of the foregoing into cash, instruments, securities or other property, including
without limitation all amounts, other than investment earnings, from time to
time held or invested in the Certificate Account, whether in the form of cash,
instruments, securities or other property; (c) the possession by the Trustee or
any Custodian of such items of property and such other items of property as
constitute instruments, money, negotiable documents or chattel paper shall be
deemed to be "in possession by the secured party" for purposes of perfecting the
security interest pursuant to Section 9-305 of the New York Uniform Commercial
Code; 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 benefit of the Certificateholders for the purpose of perfecting such
security interest under applicable law (except that nothing in this clause (e)
shall cause any person to be deemed to be an agent of the Trustee for any
purpose other than for perfection of such security interests unless, and then
only to the extent, expressly appointed and authorized by the Trustee in
writing). The Depositor and the Trustee, upon directions from the Depositor,
shall, to the extent consistent with this Agreement, take such actions as may be
necessary to ensure that, if this Agreement were deemed to create a security
interest in the Mortgage Loans, such security interest would be deemed to be a
perfected security interest of first priority under applicable law and will be
maintained as such throughout the term of this Agreement.

            (e) The Depositor hereby sells, transfers, assigns, sets over and
otherwise conveys to the Trustee in trust for the benefit of the
Certificateholders, without recourse, all right, title and interest in such
Subsequent Mortgage Loans (which does not include servicing rights), including
all interest and principal due on or with respect to such Subsequent Mortgage
Loans on or after the related Subsequent Transfer Date and all interest and
principal payments on such Subsequent Mortgage Loans received prior to the
Subsequent Transfer Date in respect of installments of interest and principal
due thereafter, but not including principal and interest due on such Subsequent
Mortgage Loans prior to the related Subsequent Transfer Date, any insurance
policies in respect of such Subsequent Mortgage Loans and all proceeds of any of
the foregoing.

            (f) Upon one Business Day's prior written notice to the Trustee, the
Servicer and the Rating Agencies, on any Business Day during the Pre-Funding
Period designated by the Depositor, the Depositor, DLJMC, the Servicer and the
Trustee shall complete, execute and deliver a Subsequent Transfer Agreement so
long as no Rating Agency has provided notice that

                                       46
<PAGE>

the execution and delivery of such Subsequent Transfer Agreement will result in
a reduction or withdrawal of the ratings assigned to the Certificates.

            The transfer of Subsequent Mortgage Loans and the other property and
rights relating to them on a Subsequent Transfer Date is subject to the
satisfaction of each of the following conditions:

            (i) each Subsequent Mortgage Loan conveyed on such Subsequent
      Transfer Date satisfies the representations and warranties applicable to
      it under this Agreement as of the applicable Subsequent Transfer Date;
      provided, however, that with respect to a breach of a representation and
      warranty with respect to a Subsequent Mortgage Loan, the obligation under
      Section 2.03(f) of this Agreement of the Seller to cure, repurchase or
      replace such Subsequent Mortgage Loan shall constitute the sole remedy
      against the Seller respecting such breach available to Certificateholders,
      the Depositor or the Trustee;

            (ii) the Trustee and the Rating Agencies are provided with an
      Opinion of Counsel or Opinions of Counsel, at the expense of the
      Depositor, stating that each REMIC in the Trust Fund is and shall continue
      to qualify as a REMIC following the transfer of the Subsequent Mortgage
      Loans, to be delivered as provided pursuant to Section 2.01(g);

            (iii) the Rating Agencies and the Trustee are provided with an
      Opinion of Counsel or Opinions of Counsel, at the expense of the
      Depositor, confirming that the transfer of the Subsequent Mortgage Loans
      conveyed on such Subsequent Transfer Date is a true sale, to be delivered
      as provided pursuant to Section 2.01(g);

            (iv) the execution and delivery of such Subsequent Transfer
      Agreement or conveyance of the related Subsequent Mortgage Loans does not
      result in a reduction or withdrawal of any ratings assigned to the
      Certificates by the Rating Agencies;

            (v) no Subsequent Mortgage Loan conveyed on such Subsequent Transfer
      Date is 30 or more days contractually delinquent as of such date;

            (vi) the remaining term to stated maturity of such Subsequent
      Mortgage Loan does not exceed 30 years for fully amortizing loans or 15
      years for balloon loans;

            (vii) such Subsequent Mortgage Loan does not have a Net Mortgage
      Rate less than 3.90% per annum;

            (viii) the Depositor shall have deposited in the Collection Account
      all principal and interest collected with respect to the related
      Subsequent Mortgage Loans on or after the related Subsequent Transfer
      Date;

            (ix) such Subsequent Mortgage Loan does not have a Combined
      Loan-to-Value Ratio greater than 100.00%;

                                       47
<PAGE>

            (x) such Subsequent Mortgage Loan has a principal balance not
      greater than $350,000;

            (xi) no Subsequent Mortgage Loan shall have a final maturity date
      after January 1, 2035;

            (xii) such Subsequent Mortgage Loan is secured by a first or second
      lien;

            (xiii) such Subsequent Mortgage Loan is otherwise acceptable to the
      Rating Agencies;

            (xiv) [reserved];

            (xv) following the conveyance of such Subsequent Mortgage Loans on
      such Subsequent Transfer Date the characteristics of the Mortgage Loans
      (based on the Initial Mortgage Loans as of the Cut-off Date and the
      Subsequent Mortgage Loans as of their related Subsequent Transfer Date)
      will be as follows:

            A. a weighted average Mortgage Rate of at least 9.40% per annum;

            B. a weighted average remaining term to stated maturity of less than
      220 months;

            C. a weighted average Combined Loan-to-Value Ratio of not more than
      98.14%;

            D. a weighted average credit score of at least 689;

            E. no more than 85.00% of the Mortgage Loans by aggregate Cut-off
      Date Principal Balance are balloon loans;

            F. no more than 40.00% of the Mortgage Loans by aggregate Cut-off
      Date Principal Balance are concentrated in one state; and

            G. no more than 14.27% of the Mortgage Loans by aggregate Cut-off
      Date Principal Balance relate to non-owner occupied properties;

            (xvi) neither the Seller nor the Depositor shall be insolvent or
      shall be rendered insolvent as a result of such transfer;

            (xvii) no Event of Default has occurred hereunder; and

            (xviii) the Depositor shall have delivered to the Trustee an
      Officer's Certificate confirming the satisfaction of each of these
      conditions precedent.

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<PAGE>

Subsequent Mortgage Loans with an aggregate principal balance of at least
$12,917,316 (as of the related Subsequent Transfer Date), to the extent
transferred to the Trust, will meet the eligibility criteria for coverage under
the Credit Insurance Policy.

            (g) Upon (1) delivery to the Trustee by the Depositor of the
Opinions of Counsel referred to in Sections 2.01(f)(ii) and (iii), (2) delivery
to the Trustee by the Depositor of a revised Mortgage Loan Schedule reflecting
the Subsequent Mortgage Loans conveyed on such Subsequent Transfer Date and the
related Subsequent Mortgage Loans and (3) delivery to the Trustee by the
Depositor of an Officer's Certificate confirming the satisfaction of each of the
conditions precedent set forth in Section 2.01(f), the Trustee shall remit to
the Depositor the Aggregate Subsequent Transfer Amount related to the Subsequent
Mortgage Loans transferred by the Depositor on such Subsequent Transfer Date
from funds in the Pre-Funding Account.

            The Trustee shall not be required to investigate or otherwise verify
compliance with the conditions set forth in the preceding paragraph, except for
its own receipt of documents specified above, and shall be entitled to rely on
the required Officer's Certificate.

            SECTION 2.02 Acceptance by the Trustee.

            The Trustee acknowledges receipt by the Custodian of the documents
identified in the Initial Certification in the form annexed hereto as Exhibit G
and declares that the Custodian on its behalf hold and will hold the documents
delivered to the Custodian constituting the Mortgage Files, and that it or the
Custodian holds or will hold such other assets as are included in the Trust
Fund, in trust for the exclusive use and benefit of all present and future
Certificateholders. The Trustee acknowledges that it will maintain possession
through the Custodian of the Mortgage Notes in the State of Texas or the State
of Illinois, as directed by the Seller, unless otherwise permitted by the Rating
Agencies.

            The Custodian is required under the Custodial Agreement to execute
and deliver on the Closing Date to the Depositor, the Seller, the Trustee and
the Servicer an Initial Certification in the form annexed hereto as Exhibit G.
Based on its review and examination, and only as to the documents identified in
such Initial Certification, pursuant to the Custodial Agreement, the Custodian
will acknowledge that such documents appear regular on their face and relate to
such Mortgage Loan. Neither the Trustee nor the Custodian 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 in the real estate records or that they are other than what they
purport to be on their face.

            Not later than 90 days after the Closing Date, the Custodian is
required to deliver to the Depositor, the Seller, the Trustee and the Servicer a
Final Certification in the form annexed hereto as Exhibit H, with any applicable
exceptions noted thereon.

            If, in the course of such review, the Custodian finds any document
constituting a part of a Mortgage File which does not meet the requirements of
Section 2.01, pursuant to the

                                       49
<PAGE>

Custodial Agreement, the Custodian will list such as an exception in the Final
Certification; provided, however, that neither the Trustee nor the Custodian
shall make any determination as to whether (i) any endorsement is sufficient to
transfer all right, title and interest of the party so endorsing, as noteholder
or assignee thereof, in and to that Mortgage Note or (ii) any assignment is in
recordable form or is sufficient to effect the assignment of and transfer to the
assignee thereof under the mortgage to which the assignment relates.

            The Seller shall promptly correct or cure such defect within 120
days from the date it was so notified of such defect and, if the Seller does not
correct or cure such defect within such period and such defect materially and
adversely affects the interests of the Certificateholders in the related
Mortgage Loan, the Seller shall either (a) substitute for the related Mortgage
Loan a Qualified Substitute Mortgage Loan, which substitution shall be
accomplished in the manner and subject to the conditions set forth in Section
2.03, or (b) purchase such Mortgage Loan from the Trustee within 120 days from
the date the Seller was notified of such defect in writing at the Repurchase
Price of such Mortgage Loan; provided, however, that in no event shall such
substitution or repurchase occur more than 540 days from the Closing Date,
except that if the substitution or repurchase of a Mortgage Loan pursuant to
this provision is required by reason of a delay in delivery of any documents by
the appropriate recording office, then such substitution or repurchase shall
occur within 720 days from the Closing Date; and further provided, that the
Seller shall have no liability for recording any Assignment of Mortgage in favor
of the Trustee or for the Trustee's failure to record such Assignment of
Mortgage, and the Seller shall not be obligated to repurchase or cure any
Mortgage Loan solely as a result of the Trustee's failure to record such
Assignment of Mortgage. The Trustee shall deliver written notice to each Rating
Agency within 360 days from the Closing Date indicating each Mortgage Loan (a)
the Assignment of Mortgage which has not been returned by the appropriate
recording office or (b) as to which there is a dispute as to location or status
of such Mortgage Loan. Such notice shall be delivered every 90 days thereafter
until the Assignment of Mortgage for the related Mortgage Loan is returned to
the Trustee or the dispute as to location or status has been resolved. Any such
substitution pursuant to (a) above shall not be effected prior to the delivery
to the Trustee of the Opinion of Counsel required by Section 2.05 hereof, if
any, and any substitution pursuant to (a) above shall not be effected prior to
the additional delivery to the Trustee of a Request for Release substantially in
the form of Exhibit M. No substitution is permitted to be made in any calendar
month after the Determination Date for such month. The Repurchase Price for any
such Mortgage Loan shall be deposited by the Seller in the Certificate Account
on or prior to the Business Day immediately preceding such Distribution Date in
the month following the month of repurchase and, upon receipt of such deposit
and certification with respect thereto in the form of Exhibit M hereto, the
Trustee shall release the related Mortgage File to the Seller and shall execute
and deliver at such entity's request such instruments of transfer or assignment
prepared by such entity, in each case without recourse, as shall be necessary to
vest in such entity, or a designee, the Trustee's interest in any Mortgage Loan
released pursuant hereto. In furtherance of the foregoing, if the Seller is not
a member of MERS and repurchases a Mortgage Loan which is registered on the
MERS(R) System, the Seller, at its own expense and without any right of
reimbursement, shall cause MERS to execute and deliver an assignment of the
Mortgage in recordable form to transfer the Mortgage

                                       50
<PAGE>

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.

            Pursuant to the Custodial Agreement, the Custodian is required to
execute and deliver on the Subsequent Transfer Date to the Depositor, the
Seller, the Trustee and the Servicer an Initial Certification in the form
annexed hereto as Exhibit G. Based on its review and examination, and only as to
the documents identified in such Initial Certification, the Custodian shall
acknowledge that such documents appear regular on their face and relate to such
Subsequent Mortgage Loan. Neither the Trustee nor the Custodian shall be under a
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 in the real estate records or that they are other than what they
purport to be on their face.

            Pursuant to the Custodial Agreement, not later than 90 days after
the end of the Pre-Funding Period, the Custodian is required to deliver to the
Depositor, the Seller, the Trustee and the Servicer a Final Certification with
respect to the Subsequent Mortgage Loans in the form annexed hereto as Exhibit H
with any applicable exceptions noted thereon.

            If, in the course of such review of the Mortgage Files relating to
the Subsequent Mortgage Loans, the Custodian finds any document constituting a
part of a Mortgage File which does not meet the requirements of Section 2.01,
pursuant to the Custodial Agreement, the Custodian will be required to list such
as an exception in the Final Certification; provided, however that neither the
Trustee nor the Custodian shall make any determination as to whether (i) any
endorsement is sufficient to transfer all right, title and interest of the party
so endorsing, as noteholder or assignee thereof, in and to that Mortgage Note or
(ii) any assignment is in recordable form or is sufficient to effect the
assignment of and transfer to the assignee thereof under the mortgage to which
the assignment relates. The Seller shall cure any such defect or repurchase or
substitute for any such Mortgage Loan in accordance with Section 2.02(a).

            It is understood and agreed that the obligation of the Seller to
cure, substitute for or to repurchase any Mortgage Loan which does not meet the
requirements of Section 2.01 shall constitute the sole remedy respecting such
defect available to the Trustee, the Depositor and any Certificateholder against
the Seller.

            The Trustee shall pay to the Custodian from time to time reasonable
compensation for all services rendered by it hereunder or under the Custodial
Agreement, and the Trustee shall 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 or the
Custodial Agreement, except any such expense, disbursement or advance as may
arise from its negligence or bad faith.

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<PAGE>

            SECTION 2.02 Representations and Warranties of the Seller and
Servicer.

            (a) The Seller hereby makes the representations and warranties
applicable to it set forth in Schedule II hereto, and by this reference
incorporated herein, to the Depositor and the Trustee, as of the Closing Date,
or if so specified therein, as of the Cut-off Date or such other date as may be
specified.

            (b) Wilshire, in its capacity as Servicer, hereby makes the
representations and warranties applicable to it set forth in Schedule III
hereto, and by this reference incorporated herein, to the Depositor and the
Trustee, as of the Closing Date, or if so specified therein, as of the Cut-off
Date or such other date as may be specified.

            (c) Wilshire, in its capacity as Servicer, will use its reasonable
efforts to become a member of MERS in good standing, and will 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.

            (d) The Seller hereby makes the representations and warranties set
forth in Schedule IV as applicable hereto, and by this reference incorporated
herein, to the Trustee, as of the Closing Date, or the Subsequent Transfer Date,
as applicable, or if so specified therein, as of the Cut-off Date or such other
date as may be specified.

            (e) Upon discovery by any of the parties hereto of a breach of a
representation or warranty made pursuant to Section 2.03(d) that materially and
adversely affects the interests of the Certificateholders in any Mortgage Loan,
the party discovering such breach shall give prompt notice thereof to the other
parties. The Seller hereby covenants that within 120 days of the earlier of its
discovery or its receipt of written notice from any party of a breach of any
representation or warranty made by it pursuant to Section 2.03(d) which
materially and adversely affects the interests of the Certificateholders in any
Mortgage Loan sold by the Seller to the Depositor, it shall cure such breach in
all material respects, and if such breach is not so cured, shall, (i) if such
120-day period expires prior to the second anniversary of the Closing Date,
remove such Mortgage Loan (a "Deleted Mortgage Loan") from the Trust Fund and
substitute in its place a Qualified Substitute Mortgage Loan, in the manner and
subject to the conditions set forth in this Section; or (ii) repurchase the
affected Mortgage Loan from the Trustee at the Repurchase Price in the manner
set forth below; provided, however, that any such substitution pursuant to (i)
above shall not be effected prior to the delivery to the Trustee of the Opinion
of Counsel required by Section 2.05 hereof, if any, and any such substitution
pursuant to (i) above shall not be effected prior to the additional delivery to
the Trustee of a Request for Release substantially in the form of Exhibit M and
the Mortgage File for any such Qualified Substitute Mortgage Loan. The Seller
shall promptly reimburse the Trustee for any actual out-of-pocket expenses
reasonably incurred by the Trustee in respect of enforcing the remedies for such
breach. With respect to any representation and warranties described in this
Section which are made to the best of a Seller's knowledge if it is discovered
by the Depositor, the Seller or the Trustee that the substance of such
representation and warranty is inaccurate and such inaccuracy materially and
adversely affects the value of the related Mortgage Loan or the interests of the

                                       52
<PAGE>

Certificateholders therein, notwithstanding the Seller's lack of knowledge with
respect to the substance of such representation or warranty, such inaccuracy
shall be deemed a breach of the applicable representation or warranty.

            With respect to any Qualified Substitute Mortgage Loan or Loans, the
Seller shall deliver to the Trustee for the benefit of the Certificateholders
the Mortgage Note, the Mortgage, the related assignment of the Mortgage, and
such other documents and agreements as are required by Section 2.01(b), with the
Mortgage Note endorsed and the Mortgage assigned as required by Section 2.01. No
substitution is permitted to be made in any calendar month after the
Determination Date for such month. Scheduled Payments due with respect to
Qualified Substitute Mortgage Loans in the month of substitution shall not be
part of the Trust Fund and will be retained by the Seller on the next succeeding
Distribution Date. For the month of substitution, distributions to
Certificateholders will include the monthly payment due on any 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 Seller shall
amend 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 Seller shall deliver the
amended Mortgage Loan Schedule to the Trustee. Upon such substitution, 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 with
respect to such Qualified Substitute Mortgage Loan or Loans, as of the date of
substitution, the representations and warranties made pursuant to Section
2.03(e) with respect to such Mortgage Loan. Upon any such substitution and the
deposit to the Certificate Account of the amount required to be deposited
therein in connection with such substitution as described in the following
paragraph, the Trustee shall release the Mortgage File held for the benefit of
the Certificateholders relating to such Deleted Mortgage Loan to the Seller and
shall execute and deliver at the Seller's direction such instruments of transfer
or assignment prepared by the Seller, in each case without recourse, as shall be
necessary to vest title in the Seller, or its designee, the Trustee's interest
in any Deleted Mortgage Loan substituted for pursuant to this Section 2.03.

            For any month in which the Seller substitutes one or more Qualified
Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the Trustee
shall 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 (after application of the scheduled principal portion of the monthly
payments due in the month of substitution). The amount of such shortage (the
"Substitution Adjustment Amount") plus an amount equal to the sum of (i) the
aggregate of any unreimbursed Advances with respect to such Deleted Mortgage
Loans and (ii) any costs and damages actually incurred and paid by or on behalf
of the Trust in connection with any breach of the representation and warranty
set forth in Schedule III(xx) as the result of a violation of a predatory or
abusive lending law applicable to such Mortgage Loan shall be deposited in the
Certificate Account by the Seller on or before the Business Day immediately
preceding the Distribution Date in the month succeeding the calendar month
during which the related Mortgage Loan became required to be repurchased or
replaced hereunder.

                                       53
<PAGE>

            In the event that the Seller shall have repurchased a Mortgage Loan,
the Repurchase Price therefor shall be deposited in the Certificate Account on
or before the Business Day immediately preceding the Distribution Date in the
month following the month during which the Seller became obligated hereunder to
repurchase or replace such Mortgage Loan and upon such deposit of the Repurchase
Price, the delivery of the Opinion of Counsel if required by Section 2.05 and
receipt of a Request for Release in the form of Exhibit M hereto, the Trustee
shall release the related Mortgage File held for the benefit of the
Certificateholders to such Person, and the Trustee shall execute and deliver at
such Person's direction such instruments of transfer or assignment prepared by
such Person, in each case without recourse, as shall be necessary to transfer
title from the Trustee. It is understood and agreed that the obligation under
this Agreement of any Person to cure, repurchase or substitute any Mortgage Loan
as to which a breach has occurred and is continuing shall constitute the sole
remedy against such Persons respecting such breach available to
Certificateholders, the Depositor or the Trustee on their behalf.

            The representations and warranties made pursuant to this Section
2.03 shall survive delivery of the respective Mortgage Files to the Trustee for
the benefit of the Certificateholders.

            SECTION 2.03 Representations and Warranties of the Depositor as to
                         the Mortgage Loans.

            The Depositor hereby represents and warrants to the Trustee with
respect to the Mortgage Loans that, as of the Closing Date, assuming good title
has been conveyed to the Depositor, the Depositor had good title to the Mortgage
Loans and Mortgage Notes, and did not encumber the Mortgage Loans during its
period of ownership thereof, other than as contemplated by the Agreement.

            It is understood and agreed that the representations and warranties
set forth in this Section 2.04 shall survive delivery of the Mortgage Files to
the Trustee.

            SECTION 2.04 Delivery of Opinion of Counsel in Connection with
                         Substitutions.

            Notwithstanding any contrary provision of this Agreement, no
substitution pursuant to Section 2.02 shall be made more than 120 days after the
Closing Date unless the Seller delivers to the Trustee an Opinion of Counsel,
which Opinion of Counsel shall not be at the expense of either the Trustee or
the Trust Fund, addressed to the Trustee, to the effect that such substitution
will not (i) result in the imposition of the tax on "prohibited transactions" on
the Trust Fund or contributions after the Startup Date, as defined in Sections
860F(a)(2) and 860G(d) of the Code, respectively, or (ii) cause any REMIC
created hereunder to fail to qualify as a REMIC at any time that any
Certificates are outstanding.

                                       54
<PAGE>

            SECTION 2.05 Execution and Delivery of Certificates.

            The Trustee (or the Custodian) acknowledges receipt of the items
described in Section 2.02 of this Agreement and the documents identified in the
Initial Certification in the form annexed hereto as Exhibit G and, concurrently
with such receipt, has executed and delivered to or upon the order of the
Depositor, the Certificates in authorized denominations evidencing directly or
indirectly the entire ownership of the Trust Fund. The Trustee agrees to hold
the Trust Fund and exercise the rights referred to above for the benefit of all
present and future Holders of the Certificates and to perform the duties set
forth in this Agreement to the best of its ability, to the end that the
interests of the Holders of the Certificates may be adequately and effectively
protected.

            SECTION 2.06 REMIC Matters.

            The Preliminary Statement sets forth the designations and "latest
possible maturity date" for federal income tax purposes of all interests created
hereby. The "Startup Day" for purposes of the REMIC Provisions shall be the
Closing Date. The REMIC 1 Regular Interests shall be designated as the "regular
interests" in REMIC 1. The REMIC 2 Regular Interests shall be designated as the
"regular interests" in REMIC 2. The Class A-1, Class A-2, Class M-1, Class M-2,
Class B-1, Class B-2, Class B-3, Class P and Class X-1 Certificates shall be
designated as the "regular interests" in REMIC 3. The Class A-RL Certificates
will constitute the sole class of residual interests in REMIC 1 and the Class
A-R Certificates will represent beneficial ownership of two residual interests,
Class R-2 Interest and Class R-3 Interest, each of which will constitute the
sole class of residual interests in each of REMIC 2 and REMIC 3, respectively.
The Trustee shall not permit the creation of any "interests" (within the meaning
of Section 860G of the Code) in REMIC 1, REMIC 2 or REMIC 3 other than the
Certificates, the REMIC 1 Regular Interests or the REMIC 2 Regular Interests.
The "tax matters person" with respect to each of REMIC 1, REMIC 2 and REMIC 3
shall be the Holder of the Class A-R Certificate and Class A-RL Certificate at
any time holding the largest Percentage Interest thereof in the manner provided
under Treasury regulations section 1.860F-4(d) and Treasury regulations section
301.6231(a)(7)-1. The fiscal year for each REMIC shall be the calendar year. In
addition, the Class X-1 Certificateholders shall be deemed to have entered into
a contractual arrangement with the Class A-R Certificateholders or Class A-RL
Certificateholders whereby the Class A-R Certificateholders or Class A-RL
Certificateholders agree to pay to the Class X-1 Certificateholders on each
Distribution Date amounts that would, in the absence of such contractual
agreement, be distributable with respect to the residual interest in REMIC 1,
REMIC 2, and REMIC 3 pursuant to Section 4.02(b)(iv)(N) (which amounts are
expected to be zero).

            SECTION 2.07 Covenants of the Servicer.

            The Servicer shall comply in the performance of its obligations
under this Agreement with all reasonable rules and requirements of the Credit
Insurance Provider as set forth in the Credit Insurance Policy.

                                       55
<PAGE>
            The Servicer hereby covenants to the Depositor and the Trustee that
no written information, certificate of an officer, statement furnished in
writing or written report prepared by the Servicer and delivered to the
Depositor, any affiliate of the Depositor or the Trustee and prepared by the
Servicer pursuant to this Agreement will contain any untrue statement of a
material fact.

            SECTION 2.08 Conveyance of REMIC Regular Interests and Acceptance of
                         REMIC 1, REMIC 2 and REMIC 3 by the Trustee; Issuance
                         of Certificates.

            (a) The Depositor, 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 Depositor
in and to the REMIC 1 Regular Interests for the benefit of the Holder of the
REMIC 2 Regular Interests and the Holders of the Class R-2 Interest. The Trustee
acknowledges receipt of the REMIC 1 Regular Interests (each of which is
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 Holder 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.

            (b) The Depositor, 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 Depositor
in and to the REMIC 2 Regular Interests for the benefit of the Holders of the
Regular Certificates and the Class R-3 Interest. The Trustee acknowledges
receipt of the REMIC 2 Regular Interests (each of which is uncertificated) 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 and of the Class R-3
Interest. The interests evidenced by the Class R-3 Interest, together with the
REMIC 3 Regular Interests, constitute the entire beneficial ownership interest
in REMIC 3.

            (c) In exchange for the REMIC 2 Regular Interests and, concurrently
with the assignment to the Trustee thereof, pursuant to the written request of
the Depositor executed by an officer of the Depositor, the Trustee has executed,
authenticated and delivered to or upon the order of the Depositor, the Regular
Certificates in authorized denominations evidencing (together with the Class R-3
Interest) the entire beneficial ownership interest in REMIC 3.

            (d) Concurrently with (i) the assignment and delivery to the Trustee
of REMIC 1 (including the Residual Interest therein represented by the Class
A-RL Certificates) and the acceptance by the Trustee thereof, pursuant to
Section 2.01, Section 2.02 and Section 2.09(a); and (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 Section 2.09(b); and (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 by the Trustee thereof, pursuant to
Section 2.09(c), the Trustee, pursuant to the written request of the Depositor
executed by an officer of the Depositor, has executed, authenticated and
delivered

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<PAGE>

to or upon the order of the Depositor, the Class A-RL and the Class A-R
Certificates in authorized denominations evidencing the Class R-2 Interest and
the Class R-3 Interest.

                                       57
<PAGE>

                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

            SECTION 3.01 Servicer to Service Mortgage Loans.

            For and on behalf of the Certificateholders, the Servicer shall
service and administer the Mortgage Loans in accordance with the terms of this
Agreement and with Accepted Servicing Practices. Notwithstanding anything in
this Agreement, any Subservicing Agreement or the Credit Risk Management
Agreement to the contrary, Wilshire shall not have any duty or obligation to
enforce the Credit Risk Management Agreement or to supervise, monitor or oversee
the activities of the Credit Risk Manager under the Credit Risk Management
Agreement with respect to any action taken or not taken by Wilshire pursuant to
a recommendation of the Credit Risk Manager. In connection with such servicing
and administration, the Servicer shall have full power and authority, acting
alone and/or through Subservicers as provided in Section 3.02 hereof, to do or
cause to be done any and all things that it may deem necessary or desirable in
connection with such servicing and administration, including but not limited to,
the power and authority, subject to the terms hereof (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
(but only in the manner provided in this Agreement), (iii) to collect any
Insurance Proceeds and other Liquidation Proceeds, and (iv) to effectuate
foreclosure or other conversion of the ownership of the Mortgaged Property
securing any Mortgage Loan; provided that the Servicer shall not take any action
that is materially inconsistent with or materially prejudices the interests of
the Trust Fund or the Certificateholders in any Mortgage Loan or the rights and
interests of the Depositor, the Trustee or the Certificateholders under this
Agreement unless such action is specifically called for by the terms hereof. The
Trustee will provide a limited power of attorney to the Servicer, prepared by
the Servicer and reasonably acceptable to the Trustee, to permit the Servicer to
act on behalf of the Trustee under this Agreement. The Servicer hereby
indemnifies the Trustee for all costs and expenses incurred by the Trustee in
connection with the negligent or willful misuse of such power of attorney. The
Servicer shall represent and protect the interests of the Trust Fund in the same
manner as it protects its own interests in mortgage loans in its own portfolio
in any claim, proceeding or litigation regarding a Mortgage Loan. The Servicer
further is hereby authorized and empowered in its own name or in the name of the
Subservicer, when the Servicer or the Subservicer, as the case may be, believes
it is appropriate in its best judgment to register any Mortgage Loan on the
MERS(R) System, or cause the removal from the registration of any Mortgage Loan
on the MERS(R) System, to execute and deliver, on behalf of the Trustee and the
Certificateholders or any of them, any and all instruments of assignment and
other comparable instruments with respect to such assignment or re-recording of
a Mortgage in the name of MERS, solely as nominee for the Trustee and its
successors and assigns. Any reasonable expenses incurred in connection with the
actions described in the preceding sentence or as a result of MERS discontinuing
or becoming unable to continue operations in connection with the

                                       58
<PAGE>

MERS(R) System, shall be reimbursable by the Trust Fund to the Servicer.
Notwithstanding the foregoing, subject to Section 3.05(a), the Servicer shall
not make or permit any modification, waiver or amendment of any Mortgage Loan
that would both constitute a sale or exchange of such Mortgage Loan within the
meaning of Section 1001 of the Code and any proposed, temporary or final
regulations promulgated thereunder (other than in connection with a proposed
conveyance or assumption of such Mortgage Loan that is treated as a Principal
Prepayment in Full pursuant to Section 3.10 hereof) which would cause any of
REMIC 1 , REMIC 2 or REMIC 3 to fail to qualify as a REMIC. Without limiting the
generality of the foregoing, the Servicer, in its own name or in the name of the
Depositor and the Trustee, is hereby authorized and empowered by the Depositor
and the Trustee, when the Servicer believes it appropriate in its reasonable
judgment, to execute and deliver, on behalf of the Trustee, the Depositor, the
Certificateholders or any of them, any and all instruments of satisfaction or
cancellation, or of partial or full release or discharge and all other
comparable instruments, with respect to the Mortgage Loans, and with respect to
the Mortgaged Properties held for the benefit of the Certificateholders. The
Servicer shall prepare and deliver to the Depositor and/or the Trustee such
documents requiring execution and delivery by either or both of them as are
necessary or appropriate to enable the Servicer to service and administer the
Mortgage Loans to the extent that the Servicer is not permitted to execute and
deliver such documents pursuant to the preceding sentence. Upon receipt of such
documents and a written request signed by an authorized officer, the Depositor
and/or the Trustee shall execute such documents and deliver them to the
Servicer.

            In accordance with the standards of the preceding paragraph, the
Servicer shall advance or cause to be advanced funds as necessary for the
purpose of effecting the payment of taxes and assessments on any Mortgaged
Property (to the extent the Servicer has been notified that such taxes or
assessments have not paid by the related Mortgagor or the owner or the servicer
of the related First Mortgage Loan), which advances shall be reimbursable in the
first instance from related collections from the Mortgagors pursuant to Section
3.06, and further as provided in Section 3.08; provided, however, that the
Servicer shall be required to advance only to the extent that such advances, in
the good faith judgment of the Servicer, will be recoverable by the Servicer out
of Insurance Proceeds, Liquidation Proceeds, or otherwise out of the proceeds of
the related Mortgage Loan; and provided, further, that such payments shall be
advanced within such time period required to avoid the loss of the Mortgaged
Property by foreclosure of a tax or other lien. The costs incurred by the
Servicer, if any, in effecting the timely payments of taxes and assessments on
the Mortgaged Properties and related insurance premiums shall not, for the
purpose of calculating monthly distributions to the Certificateholders, be added
to the Stated Principal Balances of the related Mortgage Loans, notwithstanding
that the terms of such Mortgage Loans so permit.

            Subject to the provisions of the first paragraph of this Section,
the Trustee shall execute, at the written request of the Servicer, and furnish
to the Servicer and any Subservicer such documents as are necessary or
appropriate to enable the Servicer or any Subservicer to carry out their
servicing and administrative duties hereunder, and the Trustee hereby grants to
the Servicer a power of attorney, to be completed in the form of Exhibit AA
hereto, to carry out such

                                       59
<PAGE>

duties. The Trustee shall not be liable for the actions of the Servicer or any
Subservicers under such powers of attorney.

            If the Mortgage relating to a Mortgage Loan had a lien senior to the
Mortgage Loan on the related Mortgaged Property as of the Cut-off Date, then the
Servicer, in such capacity, may consent to the refinancing of the prior senior
lien, provided that the following requirements are met:

            (i) the resulting Combined Loan-to-Value Ratio of such Mortgage Loan
      is no higher than the Combined Loan-to-Value Ratio prior to such
      refinancing; and

            (ii) the interest rate, or, in the case of an adjustable rate
      existing senior lien, the maximum interest rate, for the loan evidencing
      the refinanced senior lien is no more than 2.0% higher than the interest
      rate or the maximum interest rate, as the case may be, on the loan
      evidencing the existing senior lien immediately prior to the date of such
      refinancing; and

            (iii) the loan evidencing the refinanced senior lien is not subject
      to negative amortization.

            With respect to the Mortgage Loans, the Servicer agrees that, with
respect to the Mortgagors of such Mortgage Loans, the Servicer shall furnish, in
accordance with the Fair Credit Reporting Act and its implementing regulations,
accurate and complete information on its borrower credit files to Equifax,
Experian and Trans Union Credit Information Company on a monthly basis.

            SECTION 3.02 Subservicing; Enforcement of the Obligations of
                         Subservicers.

            (a) The Mortgage Loans may be subserviced by a Subservicer on behalf
of the Servicer in accordance with the servicing provisions of this Agreement,
provided that the Subservicer is an approved Fannie Mae or Freddie Mac
seller/servicer in good standing. The Servicer may perform any of its servicing
responsibilities hereunder or may cause the Subservicer to perform any such
servicing responsibilities on its behalf, but the use by the Servicer of the
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 the Subservicer as fully as if such acts and omissions were those of the
Servicer. The Servicer shall pay all fees and expenses of any Subservicer
engaged by the Servicer from its own funds.

            Notwithstanding the foregoing, the Servicer shall be entitled to
outsource one or more separate servicing functions to a Person (each, an
"Outsourcer") that does not meet the eligibility requirements for a Subservicer,
so long as such outsourcing does not constitute the delegation of the Servicer's
obligation to perform all or substantially all of the servicing of the related
Mortgage Loans to such Outsourcer. In such event, the use by the Servicer of any
such Outsourcer shall not release the Servicer from any of its obligations
hereunder and the Servicer

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<PAGE>

shall remain responsible hereunder for all acts and omissions of such Outsourcer
as fully as if such acts and omissions were those of the Servicer, and the
Servicer shall pay all fees and expenses of the Outsourcer from the Servicer's
own funds.

            (b) At the cost and expense of the Servicer, without any right of
reimbursement from the Depositor, Trustee, the Trust Fund, or the Collection
Account, the Servicer shall be entitled to terminate the rights and
responsibilities of its Subservicer and arrange for any servicing
responsibilities to be performed by a successor Subservicer meeting the
requirements set forth in Section 3.02(a), provided, however, that nothing
contained herein shall be deemed to prevent or prohibit the Servicer, at the
Servicer's option, from electing to service the related Mortgage Loans itself.
In the event that the Servicer's responsibilities and duties under this
Agreement are terminated pursuant to Section 7.01, and if requested to do so by
the Trustee, the Servicer shall at its own cost and expense terminate the rights
and responsibilities of its Subservicer as soon as is reasonably possible. The
Servicer shall pay all fees, expenses or penalties necessary in order to
terminate the rights and responsibilities of its Subservicer from the Servicer's
own funds without any right of reimbursement from the Depositor, Trustee, the
Trust Fund, or the Collection Account.

            (c) Notwithstanding any of the provisions of this Agreement relating
to agreements or arrangements between the Servicer and its Subservicer, the
Servicer and its Outsourcer, or any reference herein to actions taken through
the Subservicer, the Outsourcer, or otherwise, the Servicer shall not be
relieved of its obligations to the Depositor, Trustee or Certificateholders 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 its Subservicer and Outsourcer
for indemnification of the Servicer or Outsourcer, as applicable, by such
Subservicer and nothing contained in this Agreement shall be deemed to limit or
modify such indemnification.

            For purposes of this Agreement, the Servicer shall be deemed to have
received any collections, recoveries or payments with respect to the related
Mortgage Loans that are received by a related Subservicer or Outsourcer, as
applicable, regardless of whether such payments are remitted by the Subservicer
or Outsourcer, as applicable, to the Servicer.

            Any Subservicing Agreement and any other transactions or services
relating to the Mortgage Loans involving a Subservicer or an Outsourcer shall be
deemed to be between the Subservicer or an Outsourcer, and the Servicer alone,
and the Depositor and the Trustee shall have no obligations, duties or
liabilities with respect to a Subservicer including no obligation, duty or
liability of the Depositor and Trustee or the Trust Fund to pay a Subservicer's
fees and expenses.

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<PAGE>

            SECTION 3.03 [Reserved].

            SECTION 3.04 Trustee to Act as Servicer.

            (a) In the event that the Servicer shall for any reason no longer be
the Servicer hereunder (including by reason of an Event of Default), the Trustee
or its successor shall thereupon assume all of the rights and obligations of the
Servicer hereunder arising thereafter (except that the Trustee shall not be (i)
liable for losses of the Servicer pursuant to Section 3.09 hereof or any acts or
omissions of the related predecessor Servicer hereunder, (ii) obligated to make
Advances if it is prohibited from doing so by applicable law or (iii) deemed to
have made any representations and warranties of the Servicer hereunder). Any
such assumption shall be subject to Section 7.02 hereof.

            The Servicer shall, upon request of the Trustee, but at the expense
of the Servicer, deliver to the assuming party all documents and records
relating to each Subservicing Agreement or substitute Subservicing Agreement and
the Mortgage Loans then being serviced thereunder and hereunder by the Servicer
and an accounting of amounts collected or held by it and otherwise use its best
efforts to effect the orderly and efficient transfer of the substitute
Subservicing Agreement to the assuming party.

            (b) [reserved]

            SECTION 3.05 Collection of Mortgage Loans; Collection Accounts;
                         Certificate Account; Pre-Funding Account; Capitalized
                         Interest Account.

            (a) Continuously from the date hereof until the principal and
interest on all Mortgage Loans have been paid in full or such Mortgage Loans
have become Liquidated Mortgage Loans, the Servicer shall proceed in accordance
with Accepted Servicing Practices to collect all payments due under each of the
Mortgage Loans when the same shall become due and payable to the extent
consistent with this Agreement and, consistent with such standard, with respect
to Escrow Mortgage Loans, the Servicer shall ascertain and estimate Escrow
Payments and all other charges that will become due and payable with respect to
the Mortgage Loans and the Mortgaged Properties, 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. Consistent with the terms of this
Agreement, the Servicer may also 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 in the Servicer's
determination such waiver, modification, postponement or indulgence is not
materially adverse to the interests of the Certificateholders (taking into
account any estimated Realized Loss that might result absent such action);
provided, however, that the Servicer may not modify materially or permit any
Subservicer to modify any Mortgage Loan (unless such Mortgage Loan is in default
or, in the judgment of the Servicer, such default is reasonably foreseeable),
including without limitation any modification that would change the Mortgage
Rate, forgive the payment of any principal or interest (unless in connection
with the liquidation of the related Mortgage Loan or except in connection with
Principal

                                       62
<PAGE>

Prepayments to the extent that such reamortization is not inconsistent with the
terms of the Mortgage Loan), increase the principal balance, or extend the final
maturity date of such Mortgage Loan, and, provided however, that in no event
shall such modification reduce the interest rate on a Mortgage Loan below the
rate at which the Servicing Fee with respect to such Mortgage Loan accrues,
provided, further, no such modification will be granted without the prior
consent of the Credit Insurance Provider if so required in the Credit Insurance
Policy and provided, further, that any such waiver, modification, postponement
or indulgence granted to a Mortgagor by the Servicer in connection with its
servicing of the related First Mortgage Loan shall not be considered relevant to
a determination of whether the Servicer has acted consistently with the terms
and standards of this Agreement, so long as in the Servicer's determination such
action is not materially adverse to the interests of the Certificateholders. In
the event of any such arrangement that permits the deferment of principal and
interest payment on any Mortgage Loan, the Servicer shall make Advances on the
related Mortgage Loan in accordance with the provisions of Section 4.01 during
the scheduled period in accordance with the amortization schedule of such
Mortgage Loan without modification thereof by reason of such arrangements. The
Servicer shall not be required to institute or join in litigation with respect
to collection of any payment (whether under a Mortgage, Mortgage Note or
otherwise or against any public or governmental authority with respect to a
taking or condemnation) if it reasonably believes that enforcing the provision
of the Mortgage or other instrument pursuant to which such payment is required
is prohibited by applicable law.

            (b) The Servicer shall segregate and hold all funds collected and
received pursuant to a Mortgage Loan separate and apart from any of its own
funds and general assets and shall establish and maintain one or more Collection
Accounts, each of which shall be an Eligible Account, titled "[Servicer's name],
in trust for the Holders of Credit Suisse First Boston Mortgage Securities
Corp., Home Equity Mortgage Pass-Through Certificates, Series 2004-5" or, if
established and maintained by a Subservicer on behalf of the Servicer,
"[Subservicer's name], in trust for [Servicer's name]" or "[Subservicer's name],
as agent, trustee and/or bailee of principal and interest custodial account for
[Servicer's name], its successors and assigns, for various owners of interest in
[Servicer's name] mortgage-backed pools". Any funds deposited in a Collection
Account shall at all times be either invested in Eligible Investments or shall
be fully insured to the full extent permitted under applicable law. Funds
deposited in a Collection Account may be drawn on by the Servicer in accordance
with Section 3.08.

            The Servicer shall deposit in the Collection Account within two
Business Days of receipt and retain therein, the following collections remitted
by Subservicers or payments received by the Servicer and payments made by the
Servicer subsequent to the Cut-off Date, other than Scheduled Payments due on or
before the Cut-off Date:

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

            (ii) all payments on account of interest on the Mortgage Loans
      adjusted to the per annum rate equal to the Mortgage Rate reduced by the
      related Servicing Fee Rate;

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<PAGE>

            (iii) all Liquidation Proceeds on the Mortgage Loans;

            (iv) all Insurance Proceeds (including payments made by the Credit
      Insurance Provider under the Credit Insurance Policy) on the Mortgage
      Loans including amounts required to be deposited pursuant to Section 3.09
      (other than proceeds to be held in the Escrow Account and applied to the
      restoration or repair of the Mortgaged Property or released to the
      Mortgagor in accordance with Section 3.09);

            (v) all Advances made by the Servicer pursuant to Section 4.01;

            (vi) with respect to each Principal Prepayment on the Mortgage
      Loans, the Compensating Interest Payment, if any, for the related
      Prepayment Period;

            (vii) any amounts required to be deposited by the Servicer in
      respect of net monthly income from REO Property pursuant to Section 3.11;
      and

            (viii) any other amounts required to be deposited hereunder
      including all collected Prepayment Charges.

            The foregoing requirements for deposit into each Collection Account
shall be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, Ancillary Income need not be deposited by the
Servicer into such Collection Account. In addition, notwithstanding the
provisions of this Section 3.05, the Servicer may deduct from amounts received
by it, prior to deposit to the applicable Collection Account, any portion of any
Scheduled Payment representing the applicable Servicing Fee. In the event that
the Servicer shall remit any amount not required to be remitted, it may at any
time withdraw or direct the institution maintaining the related Collection
Account to withdraw such amount from such Collection Account, any provision
herein to the contrary notwithstanding. Such withdrawal or direction may be
accomplished by delivering written notice thereof to the Trustee or such other
institution maintaining such Collection Account which describes the amounts
deposited in error in such Collection Account. The Servicer shall maintain
adequate records with respect to all withdrawals made by it pursuant to this
Section. All funds deposited in a Collection Account shall be held in trust for
the Certificateholders until withdrawn in accordance with Section 3.08.

            (c) On or prior to the Closing Date, the Trustee shall establish and
maintain, on behalf of the Certificateholders, the Certificate Account. The
Trustee shall, promptly upon receipt, deposit in the Certificate Account and
retain therein the following:

            (i) the aggregate amount remitted by the Servicer to the Trustee
      pursuant to Section 3.08(viii);

            (ii) any amount deposited by the Trustee pursuant to Section 3.05(d)
      in connection with any losses on Eligible Investments; and

            (iii) any other amounts deposited hereunder which are required to be
      deposited in the Certificate Account.

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<PAGE>

            In the event that the Servicer shall remit to the Trustee any amount
not required to be remitted, it may at any time direct the Trustee to withdraw
such amount from the Certificate Account, any provision herein to the contrary
notwithstanding. Such direction may be accomplished by delivering an Officer's
Certificate to the Trustee which describes the amounts deposited in error in the
Certificate Account. All funds deposited in the Certificate Account shall be
held by the Trustee in trust for the Certificateholders until disbursed in
accordance with this Agreement or withdrawn in accordance with Section 3.08(b).
In no event shall the Trustee incur liability for withdrawals from the
Certificate Account at the direction of the Servicer.

            (d) Each institution at which a Collection Account, the Certificate
Account or the Pre-Funding Account is maintained shall either hold such funds on
deposit uninvested or shall invest the funds therein as directed in writing by
the Servicer (in the case of a Collection Account), the Trustee (in the case of
the Certificate Account) or the Depositor (in the case of the Pre-Funding
Account), in Eligible Investments, which shall mature not later than (i) in the
case of a Collection Account, the second Business Day immediately preceding the
related Distribution Date and (ii) in the case of the Certificate Account and
the Pre-Funding Account, the Business Day immediately preceding the Distribution
Date and, in each case, shall not be sold or disposed of prior to its maturity.
All income and gain net of any losses realized from any such balances or
investment of funds on deposit in a Collection Account shall be for the benefit
of the Servicer as servicing compensation and shall be remitted to it monthly as
provided herein. The amount of any realized losses in a Collection Account
incurred in any such account in respect of any such investments shall promptly
be deposited by the Servicer in the related Collection Account. The Trustee in
its fiduciary capacity shall not be liable for the amount of any loss incurred
in respect of any investment or lack of investment of funds held in a Collection
Account or the Pre-Funding Account. All income and gain net of any losses
realized from any such investment of funds on deposit in the Certificate Account
shall be for the benefit of the Trustee as compensation and shall be remitted to
it monthly as provided herein. The amount of any realized losses in the
Certificate Account incurred in any such account in respect of any such
investments shall promptly be deposited by the Trustee in the Certificate
Account. All income and gain net of any losses realized from any such balances
or investment of funds on deposit in the Pre-Funding Account shall be for the
benefit of the Depositor and shall be remitted to it monthly.

            (e) The Servicer shall give notice to the Trustee, the Seller, each
Rating Agency and the Depositor of any proposed change of the location of the
related Collection Account prior to any change thereof. The Trustee shall give
notice to the Servicer, the Seller, each Rating Agency and the Depositor of any
proposed change of the location of the Certificate Account prior to any change
thereof.

            (f) The Trustee shall establish and maintain, on behalf of the
Certificateholders, the Pre-Funding Account. On the Closing Date, the Depositor
shall remit the Pre-Funding Amount to the Trustee for deposit in the Pre-Funding
Account. On each Subsequent Transfer Date, upon satisfaction of the conditions
for such Subsequent Transfer Date set forth in Section 2.01(f), with respect to
the related Subsequent Transfer Agreement, the

                                       65
<PAGE>

Trustee shall remit to the Depositor the applicable Aggregate Subsequent
Transfer Amount as payment of the purchase price for the related Subsequent
Mortgage Loans.

            If any funds remain in the Pre-Funding Account on January 24, 2005,
to the extent they represent interest earnings on the amounts originally
deposited into the Pre-Funding Account, the Trustee shall distribute them to the
order of the Depositor. The remaining funds in the Pre-Funding Account shall be
transferred to the Certificate Account to be included as part of principal
distributions to the Certificates, in accordance with the priorities set forth
herein, on the January 2005 Distribution Date.

            (g) The Trustee shall establish and maintain, on behalf of the
Certificateholders, the Capitalized Interest Account. On the Closing Date, the
Depositor shall remit the Capitalized Interest Deposit to the Trustee for
deposit in the Capitalized Interest Account. On the Business Day prior to each
of the November 2004, December 2004 and January 2005 Distribution Dates, the
Trustee shall transfer from each Capitalized Interest Account to the Certificate
Account an amount equal to the Capitalized Interest Requirement for such
Distribution Date. On each of the November 2004 and December 2004 Distribution
Dates, the Overfunded Interest Amount shall be withdrawn from the Capitalized
Interest Account and paid to the Depositor. Any funds remaining in the
Capitalized Interest Account immediately after the January 2005 Distribution
Date shall be paid to the Depositor.

            SECTION 3.06 Establishment of and Deposits to Escrow Accounts;
                         Permitted Withdrawals from Escrow Accounts; Payments
                         of Taxes, Insurance and Other Charges.

            (a) To the extent required by the related Mortgage Note and not in
violation of current law, the Servicer shall segregate and hold all funds
collected and received pursuant to a Mortgage Loan constituting Escrow Payments
separate and apart from any of its own funds and general assets and shall
establish and maintain one or more Escrow Accounts, each of which shall be an
Eligible Account, titled, "[Servicer's name], in trust for "Credit Suisse First
Boston Mortgage Securities Corp., Home Equity Mortgage Pass-Through
Certificates, Series 2004-5 and various mortgagors" or, if established and
maintained by a Subservicer on behalf of the Servicer, "[Subservicer's name], in
trust for [Servicer's name]" or "[Subservicer's name], as agent, trustee and/or
bailee of taxes and insurance custodial account for [Servicer's name], its
successors and assigns, for various owners of interest in [Servicer's name]
mortgage-backed pools". Funds deposited in the Escrow Account may be drawn on by
the Servicer in accordance with Section 3.06(b). The creation of any Escrow
Account shall be evidenced by a certification in the form of Exhibit P-1 hereto,
in the case of an account established with the Servicer, or by a letter
agreement in the form of Exhibit P-2 hereto, in the case of an account held by a
depository other than the Servicer. A copy of such certification shall be
furnished to the Depositor and Trustee.

            (b) The Servicer shall deposit in its Escrow Account or Accounts on
a daily basis within one Business Day of receipt and retain therein:

                                       66
<PAGE>

            (i) all Escrow Payments collected on account of the related Mortgage
      Loans, for the purpose of effecting timely payment of any such items as
      required under the terms of this Agreement; and

            (ii) all amounts representing Insurance Proceeds which 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(c). The Servicer shall be entitled to retain any interest paid on
funds deposited in the related Escrow Account by the depository institution,
other than interest on escrowed funds required by law to be paid to the
Mortgagor. To the extent required by law, the Servicer shall pay interest on
escrowed funds to the Mortgagor notwithstanding that the Escrow Account may be
non-interest bearing or that interest paid thereon is insufficient for such
purposes.

            (c) Withdrawals from the Escrow Account or Accounts may be made by
the Servicer only:

            (i) to effect timely payments of ground rents, taxes, assessments,
      water rates, mortgage insurance premiums, condominium charges, fire and
      hazard insurance premiums or other items constituting Escrow Payments for
      the related Mortgage;

            (ii) to reimburse the Servicer for any Servicing Advances made by
      the Servicer pursuant to this Agreement with respect to a related Mortgage
      Loan, but only from amounts received on the related Mortgage Loan which
      represent late collections of Escrow Payments thereunder;

            (iii) to refund to any Mortgagor any funds found to be in excess of
      the amounts required under the terms of the related Mortgage Loan;

            (iv) for transfer to the related Collection Account to reduce the
      principal balance of the related Mortgage Loan in accordance with the
      terms of the related Mortgage and Mortgage Note;

            (v) for application to restore or repair of the related Mortgaged
      Property in accordance with the procedures outlined in Section 3.09;

            (vi) to pay to the Servicer, or any Mortgagor to the extent required
      by law, any interest paid on the funds deposited in such Escrow Account;

            (vii) to clear and terminate such Escrow Account on the termination
      of this Agreement; and

            (viii) to remove funds inadvertently placed in the Escrow Account by
      the Servicer.

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            SECTION 3.07 Access to Certain Documentation and Information
                         Regarding the Mortgage Loans; Inspections.

            (a) The Servicer shall afford the Depositor and the Trustee
reasonable access to all records and documentation regarding the Mortgage Loans
and all accounts, insurance information and other matters relating to this
Agreement, such access being afforded without charge, but only upon reasonable
request and during normal business hours at the office designated by the
Servicer.

            (b) The Servicer shall inspect the Mortgaged Properties as often as
deemed necessary by the Servicer in the Servicer's sole discretion, to assure
itself that the value of such Mortgaged Property is being preserved. In
addition, if any Mortgage Loan is more than 60 days delinquent, the Servicer
shall conduct subsequent inspections in accordance with Accepted Servicing
Practices or as may be required by the primary mortgage guaranty insurer. The
Servicer shall keep a written or electronic report of each such inspection.

            SECTION 3.08 Permitted Withdrawals from the Collection Accounts and
                         Certificate Account.

            The Servicer may (and in the case of clause (viii) below, shall)
from time to time make withdrawals from the related Collection Account for the
following purposes:

            (i) to pay to the Servicer (to the extent not previously retained by
      the Servicer) the servicing compensation to which it is entitled pursuant
      to Section 3.14, and to pay to the Servicer, as additional servicing
      compensation, earnings on or investment income with respect to funds in or
      credited to such Collection Account;

            (ii) to reimburse the Servicer for unreimbursed Advances made by it,
      such right of reimbursement pursuant to this subclause (ii) being limited
      to amounts received on the Mortgage Loan(s) in respect of which any such
      Advance was made (including late recoveries of payments, Liquidation
      Proceeds and Insurance Proceeds, amounts representing proceeds of other
      insurance policies, if any, covering the related Mortgaged Property,
      rental and other income from REO Property and proceeds of any purchase or
      repurchase of the related Mortgage Loan to the extent deposited in the
      Collection Account);

            (iii) to reimburse the Servicer for any Nonrecoverable Advance;

            (iv) to reimburse the Servicer for (A) unreimbursed Servicing
      Advances, the Servicer's right to reimbursement pursuant to this clause
      (A) with respect to any Mortgage Loan being limited to amounts received on
      such Mortgage Loan which represent late payments of principal and/or
      interest (including, without limitation, Liquidation Proceeds and
      Insurance Proceeds, amounts representing proceeds of other insurance
      policies, if any, covering the related Mortgaged Property, rental and
      other income from REO Property and proceeds of any purchase or repurchase
      of the related

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      Mortgage Loan with respect to such Mortgage Loan) respecting which any
      such advance was made and (B) for unpaid Servicing Fees as provided in
      Section 3.11;

            (v) to pay to the purchaser, with respect to each Mortgage Loan or
      property acquired in respect thereof that has been purchased pursuant to
      Section 2.02, 2.03 or 3.11, all amounts received thereon after the date of
      such purchase;

            (vi) to reimburse the Servicer or the Depositor for expenses
      incurred by any of them and reimbursable pursuant to Section 6.03 hereof;

            (vii) to withdraw any amount deposited in such Collection Account
      and not required to be deposited therein;

            (viii) on or prior to the Servicer Cash Remittance Date, to withdraw
      an amount equal to the Available Funds (other than clauses (vi) and (vii)
      thereof) plus any related Expense Fees (other than the Servicing Fee) for
      such Distribution Date and any Prepayment Charges received in respect of
      the Mortgage Loans, subject to the collection of funds included in the
      definition of "Available Funds" and remit such amount to the Trustee for
      deposit in the Certificate Account;

            (ix) to clear and terminate such Collection Account upon termination
      of this Agreement pursuant to Section 9.01 hereof; and

            (x) to invest funds in certain Eligible Investments and to transfer
      funds to another Eligible Account.

            The Servicer shall keep and maintain separate accounting, on a
Mortgage Loan basis for the purpose of justifying any withdrawal from the
Collection Account pursuant to such subclauses (i), (ii), (iv) and (v). Prior to
making any withdrawal from a Collection Account pursuant to subclause (iii), the
Servicer shall deliver to the Trustee a certificate of a Servicing Officer
indicating the amount of any previous Advance determined by the Servicer to be a
Nonrecoverable Advance and identifying the related Mortgage Loans(s), and their
respective portions of such Nonrecoverable Advance.

            The Trustee shall withdraw funds from the Certificate Account for
distributions to the Certificateholders, the Credit Insurance Provider and the
Credit Risk Manager, if applicable, in the manner specified in this Agreement
(and to withhold from the amounts so withdrawn, the amount of any taxes that it
is authorized to withhold pursuant to the last paragraph of Section 8.11). In
addition, the Trustee may from time to time make withdrawals from the
Certificate Account for the following purposes:

            (i) to pay to itself the Trustee Fee and any investment income
      earned for the related Distribution Date;

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            (ii) to withdraw and return to the Servicer for deposit to the
      Collection Account any amount deposited in the Certificate Account and not
      required to be deposited therein; and

            (iii) to clear and terminate the Certificate Account upon
      termination of this Agreement pursuant to Section 9.01 hereof.

            SECTION 3.09 Maintenance of Hazard Insurance and Mortgage Impairment
                         Insurance; Claims; Restoration of Mortgaged Property.

            The Servicer shall obtain and maintain a blanket policy insuring
against losses arising from fire and hazards covered under extended coverage on
all of the related Mortgage Loans, which policy shall provide coverage in an
amount equal to the amount at least 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) an
amount such that the proceeds of such policy shall be sufficient to prevent the
Mortgagor and/or the mortgagee from becoming co-insurer. Any amounts collected
by the Servicer under any such policy relating to a Mortgage Loan (for the
avoidance of doubt, remaining after application of any such amounts to any
related First Mortgage Loan) shall be deposited in the related Collection
Account subject to withdrawal pursuant to Section 3.08. Such policy may contain
a deductible clause, in which case, in the event that there shall not have been
maintained on the related Mortgaged Property a standard hazard insurance policy,
and there shall have been a loss which would have been covered by such policy,
the Servicer shall deposit in the related Collection Account at the time of such
loss the amount not otherwise payable under the blanket policy because of such
deductible clause which is in excess of a deductible under a standard hazard
insurance policy, such amount to be deposited from the Servicer's funds, without
reimbursement therefor. Upon request of the Trustee, the Servicer shall cause to
be delivered to the Trustee 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 Trustee. In
connection with its activities as Servicer of the Mortgage Loans, the Servicer
agrees to present, on behalf of itself, the Depositor, and the Trustee for the
benefit of the Certificateholders, claims under any such blanket policy.

            Pursuant to Section 3.05, any amounts collected by the Servicer
under any such policies (other than amounts to be deposited in the related
Escrow Account and applied to the restoration or repair of the related Mortgaged
Property, or property acquired in liquidation of the Mortgage Loan, or to be
released to the Mortgagor, in accordance with the Servicer's normal servicing
procedures) shall be deposited in the related Collection Account (subject to
withdrawal pursuant to Section 3.08). Any costs incurred by the Servicer in
maintaining such insurance shall be recoverable by the Servicer as a Servicing
Advance out of payments by the related Mortgagor or out of Insurance Proceeds or
Liquidation Proceeds. Notwithstanding anything to the contrary in this
paragraph, the Servicer shall be required to pay the costs of maintaining any
insurance contemplated by this Section 3.09 only to the extent that such
advances, in the good faith judgment of the Servicer, will be recoverable.

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            The Servicer need not obtain the approval of the Trustee prior to
releasing any Insurance Proceeds to the Mortgagor to be applied to the
restoration or repair of the Mortgaged Property if such release is in accordance
with Accepted Servicing Practices. At a minimum, the Servicer shall comply with
the following conditions in connection with any such release of Insurance
Proceeds in excess of $10,000:

            (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; and

            (iii) pending repairs or restoration, the Servicer shall place the
      Insurance Proceeds in the related Escrow Account, if any.

            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 Trustee.

            SECTION 3.10 Enforcement of Due-on-Sale Clauses; Assumption
                         Agreements.

            The Servicer shall use its best efforts to enforce any "due-on-sale"
provision contained in any related Mortgage or Mortgage Note and to deny
assumption by the person to whom the Mortgaged Property has been or is about to
be sold whether by absolute conveyance or by contract of sale, and whether or
not the Mortgagor remains liable on the Mortgage and the Mortgage Note. When the
Mortgaged Property has been conveyed by the Mortgagor, the Servicer shall, to
the extent it has knowledge of such conveyance, exercise its rights to
accelerate the maturity of such Mortgage Loan under the "due-on-sale" clause
applicable thereto, provided, however, that the Servicer shall not exercise such
rights if prohibited by law from doing so or if the exercise of such rights
would impair or threaten to impair any recovery under the related Primary
Insurance Policy, if any or, if consistent with Accepted Servicing Practices,
the Servicer believes the collections and other recoveries in respect of such
Mortgage Loans could reasonably be expected to be maximized if the Mortgage Loan
were not accelerated.

            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 the last sentence of the preceding paragraph apply, the Servicer shall
enter into (i) an assumption and modification agreement with the person to whom
such property has been conveyed, pursuant to which such person becomes liable
under the Mortgage Note and the original Mortgagor remains liable thereon or
(ii) in the event the Servicer is unable under applicable law to require that
the original Mortgagor remain liable under the Mortgage Note and the Servicer
has the prior consent of the primary mortgage guaranty insurer, a substitution
of liability agreement with the purchaser of the Mortgaged Property pursuant to
which the original Mortgagor is released from liability and the purchaser of the
Mortgaged Property is substituted as Mortgagor and becomes liable under the

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Mortgage Note. Notwithstanding the foregoing, the Servicer shall not be deemed
to be in default under this Section by reason of any transfer or assumption
which the Servicer reasonably believes it is restricted by law from preventing,
for any reason whatsoever. In connection with any such assumption, no material
term of the Mortgage Note, including without limitation, the Mortgage Rate borne
by the related Mortgage Note, the term of the Mortgage Loan or the outstanding
principal amount of the Mortgage Loan shall be changed.

            Subject to the Servicer's duty to enforce any due-on-sale clause to
the extent set forth in this Section 3.10, in any case in which a Mortgaged
Property has been conveyed to a Person by a Mortgagor, and such Person is to
enter into an assumption agreement or modification agreement or supplement to
the Mortgage Note or Mortgage that requires the signature of the Trustee, or if
an instrument of release signed by the Trustee is required releasing the
Mortgagor from liability on the Mortgage Loan, the Servicer shall prepare and
deliver or cause to be prepared and delivered to the Trustee for signature and
shall direct, in writing, the Trustee to execute the assumption agreement with
the Person to whom the Mortgaged Property is to be conveyed and such
modification agreement or supplement to the Mortgage Note or Mortgage or other
instruments as are reasonable or necessary to carry out the terms of the
Mortgage Note or Mortgage or otherwise to comply with any applicable laws
regarding assumptions or the transfer of the Mortgaged Property to such Person.
In connection with any such assumption, no material term of the Mortgage Note
may be changed. Together with each such substitution, assumption or other
agreement or instrument delivered to the Trustee for execution by it, the
Servicer shall deliver an Officer's Certificate signed by a Servicing Officer
stating that the requirements of this Section 3.10 have been met in connection
therewith. The Servicer shall notify the Trustee that any such substitution or
assumption agreement has been completed by forwarding to the Trustee the
original of such substitution or assumption agreement, which in the case of the
original 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. Any fee collected
by the Servicer for entering into an assumption, modification or substitution of
liability agreement will be retained by the Servicer as additional servicing
compensation.

            SECTION 3.11 Realization Upon Defaulted Mortgage Loans; Repurchase
                         of Certain Mortgage Loans.

            (a) (i) The Servicer shall use reasonable efforts to foreclose upon
or otherwise comparably convert the ownership of properties securing such of the
related Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments.
With respect to such of the Mortgage Loans as come into and continue in default,
the Servicer will decide whether to (i) foreclose upon the Mortgaged Properties
securing such Mortgage Loans, (ii) write off the unpaid principal balance of the
Mortgage Loans as bad debt, (iii) take a deed in lieu of foreclosure, (iv)
accept a short sale (a payoff of the Mortgage Loan for an amount less than the
total amount contractually owed in order to facilitate a sale of the Mortgaged
Property by the Mortgagor) or permit a short refinancing (a payoff of the
Mortgage Loan for an amount less than the total amount contractually owed in
order to facilitate refinancing transactions by the Mortgagor not involving

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a sale of the Mortgaged Property), (v) arrange for a repayment plan, or (vi)
agree to a modification in accordance with this Agreement. In connection with
such decision, the Servicer shall take such action as (i) the Servicer would
take under similar circumstances with respect to a similar mortgage loan held
for its own account for investment, (ii) shall be consistent with Accepted
Servicing Practices, (iii) the Servicer shall determine consistently with
Accepted Servicing Practices to be in the best interest of the Trustee and
Certificateholders, provided, that actions taken by the Servicer in connection
with its servicing of the related First Mortgage Loan shall not be considered
relevant to a determination of whether the Servicer has met the standard set
forth in this clause (iii), so long as in the Servicer's determination such
action is not materially adverse to the interests of the Certificateholders and
(iv) is consistent with the requirements of the insurer under any Required
Insurance Policy and the Credit Insurance Provider under the Credit Insurance
Policy; provided, however, that the Servicer shall not be required to expend its
own funds in connection with any foreclosure or towards the restoration of any
property unless it shall determine in its sole discretion (i) that such
restoration and/or foreclosure will increase the proceeds of liquidation of the
related Mortgage Loan after reimbursement to itself of such expenses and (ii)
that such expenses will be recoverable to it through Liquidation Proceeds
(respecting which it shall have priority for purposes of withdrawals from the
related Collection Account). The Servicer shall be responsible for all other
costs and expenses incurred by it in any such proceedings; provided, however,
that it shall be entitled to reimbursement thereof from the liquidation proceeds
with respect to the related Mortgaged Property, as provided in the definition of
Liquidation Proceeds and as provided in Section 3.08(iv)(A).

            (ii) Notwithstanding anything to the contrary contained in this
      Agreement, with respect to any Mortgage Loan (x) that is not an Old
      Republic Covered Loan or (y) for which coverage under the Credit Insurance
      Policy is no longer available that is one hundred twenty (120) days
      delinquent, the Servicer shall obtain a broker's price opinion with
      respect to the related Mortgaged Property and shall use all reasonable
      efforts to obtain a total indebtedness balance (including, but not limited
      to, unpaid principal, interest, escrows, taxes and expenses) for any
      related senior lien. The cost of obtaining any such broker's price opinion
      shall be reimbursable to the Servicer as a Servicing Advance pursuant to
      Section 3.08(iii) or (iv). After obtaining the related broker's price
      opinion, the Servicer will determine whether any Significant Net Recovery
      is possible through foreclosure proceedings or other liquidation of the
      related Mortgaged Property. If the Servicer determines that (x) no
      Significant Net Recovery is possible or (y) the potential Net Recoveries
      are anticipated to be an amount, determined by the Servicer in its good
      faith judgment and in light of other mitigating circumstances, that is
      insufficient to warrant proceeding through foreclosure or other
      liquidation of the related Mortgaged Property, it may, at its discretion,
      charge off such delinquent Mortgage Loan in accordance with subsections
      (a)(iii) and (a)(iv) below.

            (iii) With respect to any Mortgage Loan (x) that is not an Old
      Republic Covered Loan or (y) for which coverage under the Credit Insurance
      Policy is no longer available, if the Servicer determines based on the
      broker's price opinion obtained under paragraph (a)(ii) above and other
      relevant considerations that (x) no Significant Net Recovery is possible
      through foreclosure proceedings or other liquidation of the related
      Mortgaged Property or (y) the potential Net

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<PAGE>

      Recoveries are anticipated to be an amount, determined by the Servicer in
      its good faith judgment and in light of other mitigating circumstances,
      that is insufficient to warrant proceeding through foreclosure or other
      liquidation of the related Mortgaged Property, it will be obligated to
      charge off the related Mortgage Loan at the time such Mortgage Loan
      becomes 180 days delinquent. Once a Mortgage Loan has been charged off,
      the Servicer will discontinue making Advances, the Servicer will not be
      entitled to any additional servicing compensation (except as described in
      paragraphs(a)(ii) or (a)(iv) of this Section 3.11), the Charged Off Loan
      will give rise to a Realized Loss, and the Servicer will follow the
      procedures described in paragraph (a)(iv) below. If the Servicer
      determines that (x) a Significant Net Recovery is possible through
      foreclosure proceedings or other liquidation of the Mortgaged Property and
      (y) the potential Net Recoveries are anticipated to be an amount,
      determined by the Servicer in its good faith judgment and in light of
      other mitigating circumstances, that is sufficient to warrant proceeding
      through foreclosure or other liquidation of the related Mortgaged
      Property, the Servicer may continue to make Advances or Servicing Advances
      on the related Mortgage Loan that has become 180 days delinquent and, will
      notify the Credit Risk Manager of that decision.

            (iv) Any Mortgage Loan that becomes a Charged Off Loan may continue
      to be serviced by Wilshire for the Certificateholders using Wilshire
      Special Servicing. Wilshire will accrue, but not be entitled to any
      Servicing Fees and reimbursement of expenses in connection with such
      Charged Off Loans, except to the extent of funds available from the
      aggregate amount of recoveries on all Charged Off Loans. Such aggregate
      recovery amounts on Charged Off Loans shall be paid to Wilshire first, as
      reimbursement of any outstanding and unpaid expenses, and second, as any
      accrued and unpaid Servicing Fees. Wilshire will only be entitled to
      previously accrued Servicing Fees and expenses on any such Charged Off
      Loans. Wilshire will not be entitled to receive any future unaccrued
      Servicing Fees or expenses from collections on such Charged Off Loans. Any
      Charged Off Loan serviced by Wilshire using Wilshire Special Servicing
      shall be so serviced until the Release Date described below. Any Net
      Recoveries on such Charged Off Loans received prior to the Release Date
      will be included in Available Funds.

            On the date (the "Release Date") which is no more than six months
after the date on which Wilshire begins servicing any Charged Off Loans using
Wilshire Special Servicing, unless specific Net Recoveries are anticipated by
Wilshire on a particular Charged Off Loan (in which case the Release Date will
be delayed until all such specific anticipated Net Recoveries are received),
such Charged Off Loan will be released from the Trust Fund, will no longer be an
asset of any REMIC, and will be transferred to the Class X-2 Certificateholders,
without recourse, and thereafter (i) those Holders will be entitled to any
amounts subsequently received in respect of any such Released Loans, (ii) the
Majority in Interest Class X-2 Certificateholder may designate any servicer to
service any such Released Loan and (iii) the Majority in Interest Class X-2
Certificateholder may sell any such Released Loan to a third party.
Notwithstanding the previous sentence, if at any time after a Mortgage Loan has
been Charged Off and prior to six

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months after the date on which Wilshire begins servicing such Charged Off Loan
using Wilshire Special Servicing, Wilshire determines that there will not be any
Net Recoveries on such Charged Off Loan under any circumstances, Wilshire may
release such Charged Off Loan to the Majority in Interest Class X-2
Certificateholder in accordance with the provisions set forth in the previous
sentence.

            Notwithstanding the foregoing, the procedures described above in
this subsection 3.11(a)(iv) relating to the treatment of Charged Off Loans may
be modified at any time at the discretion of the Majority in Interest Class X-1
Certificateholder, with the consent of Wilshire, which consent shall not be
unreasonably withheld; provided, however, that in no event shall the Majority in
Interest Class X-1 Certificateholder change the fee structure relating to
Charged Off Loans in a manner that would cause fees to be paid to Wilshire other
than from recoveries on Charged Off Loans.

            The Trustee shall track collections received by Wilshire on any
Charged Off Loans based upon loan level data provided to the Trustee by Wilshire
on each Servicer Data Remittance Date in a report in the form of Exhibit U
hereto, identifying the Charged Off Loans as of the related Due Period that
Wilshire will continue to service until the related Release Date using Wilshire
Special Servicing. On each Distribution Date, the Trustee shall verify, based on
the recovery and expense information provided by Wilshire on the related
Servicer Data Remittance Date, (i) the aggregate amount of accrued and unpaid
Servicing Fees to be paid to Wilshire and expenses to be reimbursed to Wilshire
on such Charged Off Loans as of the related Due Period and (ii) the amount of
Net Recoveries on such Charged Off Loans for such Distribution Date. The Trustee
shall be entitled to rely, without independent verification, on the loan level
data provided by Wilshire that identifies the recovery amounts and the
outstanding and unpaid expenses on any Charged Off Loan in order to verify the
amount in clause (ii) of the previous sentence. The Trustee will be responsible
for independently verifying the aggregate amount of accrued and unpaid Servicing
Fees described in clause (i) of the second preceding sentence to be paid to
Wilshire.

            (v) Notwithstanding anything to the contrary contained in this
      Agreement, 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 Trustee otherwise requests, an
      environmental inspection or review of such Mortgaged Property conducted by
      a qualified inspector shall be arranged for by the Servicer. Upon
      completion of the inspection, the Servicer shall promptly provide the
      Trustee with a written report of environmental inspection. It is
      understood by the parties hereto that any cost related to such inspection
      shall be advanced by the Servicer and will be deemed a Servicing Advance
      in accordance with the provisions of Section 3.08 hereof.

            (vi) In the event 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 if the estimated costs of the environmental
      clean up, as estimated in the environmental

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      inspection report, together with the Servicing Advances made by the
      Servicer and the estimated costs of foreclosure or acceptance of a deed in
      lieu of foreclosure exceeds the estimated value of the Mortgaged Property.
      If however, the aggregate of such clean up and foreclosure costs and
      Servicing Advances are less than or equal to the estimated value of the
      Mortgaged Property, then the Servicer may, in its reasonable judgment and
      in accordance with Accepted Servicing Practices, choose to proceed with
      foreclosure or acceptance of a deed in lieu of foreclosure and the
      Servicer shall be reimbursed for all reasonable costs associated with such
      foreclosure or acceptance of a deed in lieu of foreclosure and any related
      environmental clean up costs, as applicable, from the related Liquidation
      Proceeds, or if the Liquidation Proceeds are insufficient to fully
      reimburse the Servicer, the Servicer shall be entitled to be reimbursed
      from amounts in the related Collection Account pursuant to Section 3.08
      hereof. In the event the Servicer does not proceed with foreclosure or
      acceptance of a deed in lieu of foreclosure pursuant to the first sentence
      of this paragraph, the Servicer shall be reimbursed for all Servicing
      Advances made with respect to the related Mortgaged Property from the
      related Collection Account pursuant to Section 3.08 hereof, the Servicer
      shall have no further obligation to service such Mortgage Loan under the
      provisions of this Agreement.

            (b) With respect to any REO Property, the deed or certificate of
sale shall be taken in the name of JPMorgan Chase Bank (or in the case of a
successor trustee, the name of such successor trustee), the Trustee for the
benefit of the Certificateholders of Home Equity Mortgage Trust Series 2004-5,
or its nominee, on behalf of the Certificateholders. The Trustee's name shall be
placed on the title to such REO Property solely as the Trustee hereunder and not
in its individual capacity. Pursuant to its efforts to sell such REO Property,
the Servicer shall in accordance with Accepted Servicing Practices manage,
conserve, protect and operate each REO Property 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 the REO Property in
the same manner that it manages, conserves, protects and operates other
foreclosed property for its own account, and in the same manner that similar
property in the same locality as the REO Property is managed. The Servicer may
rent such property, as the Servicer deems to be in the best interest of the
Trustee and the Certificateholders for the period prior to the sale of such REO
Property on such terms and conditions and for such periods as the Servicer deems
to be in the best interest of the Trustee and the Certificateholders. The
Servicer shall furnish to the Trustee on or before each Distribution Date a
statement with respect to any REO Property covering the liquidation thereof
during the previous calendar month. That statement shall be accompanied by such
other information as the Trustee shall reasonably request and which is necessary
to enable the Trustee to comply with the reporting requirements of the REMIC
Provisions. The net monthly rental income, if any, from such REO Property shall
be deposited in the related Collection Account no later than the close of
business on each Determination Date. The Servicer shall perform the tax
reporting and withholding required by Sections 1445 and 6050J of the Code with
respect to foreclosures and abandonments, the tax reporting required by Section
6050H of the Code with respect to the receipt of mortgage interest from
individuals and any tax reporting required by Section 6050P of the Code with
respect to the cancellation of indebtedness by certain financial entities, by
preparing such tax and information returns as may be required, in the form
required, and delivering the same to the Trustee for filing.

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            To the extent consistent with Accepted Servicing Practices, the
Servicer shall also maintain on each REO Property fire and hazard insurance with
extended coverage in amount which is equal to the outstanding principal balance
of the related Mortgage Loan (as reduced by any amount applied as a reduction of
principal at the time of acquisition of the REO Property), liability insurance
and, to the extent required and available under the Flood Disaster Protection
Act of 1973, as amended, flood insurance in the amount required above. Any costs
incurred by the Servicer in maintaining such insurance shall be recoverable by
the Servicer as a Servicing Advance out of payments by the related Mortgagor or
out of Insurance Proceeds or Liquidation Proceeds. Notwithstanding anything to
the contrary in this paragraph, the Servicer shall be required to pay the costs
of maintaining any insurance contemplated by this Section 3.11(b) only to the
extent that such advances, in the good faith judgment of the Servicer, will be
recoverable.

            (c) In the event that the Trust Fund acquires any Mortgaged Property
as aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Servicer shall dispose of such Mortgaged Property prior to
three years after the end of the calendar year of its acquisition by the Trust
Fund unless (i) the Trustee shall have been supplied with an Opinion of Counsel
to the effect that the holding by the Trust Fund of such Mortgaged Property
subsequent to such three-year period will not result in the imposition of taxes
on "prohibited transactions" of any REMIC hereunder as defined in section 860F
of the Code or cause any REMIC hereunder to fail to qualify as a REMIC at any
time that any Certificates are outstanding, in which case the Trust Fund 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 extension period. The
Servicer shall be entitled to be reimbursed from the Collection Account, as a
Servicing Advance, for any costs incurred in obtaining such Opinion of Counsel.
Notwithstanding any other provision of this Agreement, no Mortgaged Property
acquired by the Trust Fund shall be rented (or allowed to continue to be rented)
or otherwise used for the production of income by or on behalf of the Trust Fund
in such a manner or pursuant to any terms that would (i) cause such Mortgaged
Property to fail to qualify as "foreclosure property" within the meaning of
section 860G(a)(8) of the Code or (ii) subject any REMIC hereunder to the
imposition of any federal, state or local income taxes on the income earned from
such Mortgaged Property under Section 860G(c) of the Code or otherwise, unless
the Servicer has agreed to indemnify and hold harmless the Trust Fund with
respect to the imposition of any such taxes.

            In the event of a default on a Mortgage Loan one or more of whose
obligor is not a United States Person, as that term is defined in Section
7701(a)(30) of the Code, in connection with any foreclosure or acquisition of a
deed in lieu of foreclosure (together, "foreclosure") in respect of such
Mortgage Loan, the Servicer will cause compliance with the provisions of
Treasury Regulation Section 1.1445-2(d)(3) (or any successor thereto) necessary
to assure that no withholding tax obligation arises with respect to the proceeds
of such foreclosure except to the extent, if any, that proceeds of such
foreclosure are required to be remitted to the obligors on the Mortgage Loan.

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            (d) The decision of the Servicer to foreclose on a defaulted
Mortgage Loan shall be subject to a determination by the Servicer that the
proceeds of such foreclosure would exceed the costs and expenses of bringing
such a proceeding. The income earned from the management of any REO Properties,
net of reimbursement to the Servicer for expenses incurred (including any
property or other taxes) in connection with such management and net of
applicable accrued and unpaid Servicing Fees, and unreimbursed Advances and
Servicing Advances, shall be applied to the payment of principal and interest on
the related defaulted Mortgage Loans (with interest accruing as though such
Mortgage Loans were still current) and all such income shall be deemed, for all
purposes in this Agreement, to be payments on account of principal and interest
on the related Mortgage Notes and shall be deposited into the related Collection
Account. To the extent the net income received during any calendar month is in
excess of the amount attributable to amortizing principal and accrued interest
at the related Mortgage Rate on the related Mortgage Loan for such calendar
month, such excess shall be considered to be a partial prepayment of principal
of the related Mortgage Loan.

            Wilshire shall not acquire any Mortgaged Property on behalf of any
REMIC created hereunder in connection with a default or imminent default on a
Foreclosure Restricted Loan, if acquiring title to the Mortgaged Property
underlying the loan would cause the adjusted basis, for federal income tax
purposes, of these Mortgaged Properties owned by the related REMIC after
foreclosure, along with any other assets owned by the related REMIC other than
"qualified mortgages" and "permitted investments" within the meaning of Section
860G of the Code, to exceed 0.75% of the adjusted basis of the assets of the
related REMIC. If the adjusted basis of such Mortgaged Properties in
foreclosure, along with any other assets owned by the related REMIC, other than
"qualified mortgages" and "permitted investments" with the meaning of Section
860G of the Code, exceed 1.0% of the adjusted basis of the assets of the related
REMIC immediately after the distribution of principal and interest on any
Distribution Date, Wilshire will dispose of enough of such Mortgaged Properties
in foreclosure, for cash or otherwise, so that the adjusted basis of such
Mortgaged Properties in foreclosure, along with any other assets owned by the
related REMIC, other than "qualified mortgages" and "permitted investments"
within the meaning of Section 860G of the Code, will be less than 1.0% of the
adjusted basis of the assets of the related REMIC.

            (e) The proceeds from any liquidation of a Mortgage Loan, as well as
any income from an REO Property, if applicable, will be applied in the following
order of priority: first, to reimburse the Servicer for any related unreimbursed
Servicing Advances and Servicing Fees; second, to reimburse the Servicer for any
unreimbursed Advances; third, to reimburse the related Collection Account for
any Nonrecoverable Advances (or portions thereof) that were previously withdrawn
by the Servicer pursuant to Section 3.08(iii) that related to such Mortgage
Loan; fourth, to accrued and unpaid interest (to the extent no Advance has been
made for such amount or any such Advance has been reimbursed) on the Mortgage
Loan or related REO Property, at the per annum rate equal to the related
Mortgage Rate reduced by the related Servicing Fee Rate, to the Due Date
occurring in the month in which such amounts are required to be distributed; and
fifth, as a recovery of principal of the Mortgage Loan. Excess proceeds, if any,
from the liquidation of a Liquidated Mortgage Loan will be retained by the
Servicer as additional servicing compensation pursuant to Section 3.14.

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            (f) [reserved].

            (g) The Majority in Interest Class X-2 Certificateholder, at its
option, may (but is not obligated to) repurchase from the Trust Fund, (a) any
related Mortgage Loan that is delinquent in payment by three or more Scheduled
Payments or (b) any related Mortgage Loan with respect to which there has been
initiated legal action or other proceedings for the foreclosure of the related
Mortgaged Property either judicially or non-judicially. If it elects to make any
such repurchase, the Majority in Interest Class X-2 Certificateholder shall
repurchase such Mortgage Loan with its own funds at a price equal to the
Repurchase Price for such Mortgage Loan. The Majority in Interest Class X-2
Certificateholder may designate any servicer to service any such Mortgage Loan
purchased from the Trust.

            SECTION 3.12 Trustee to Cooperate; Release of Mortgage Files.

            Upon the payment in full of any Mortgage Loan, or the receipt by the
Servicer of a notification that payment in full will be escrowed in a manner
customary for such purposes, the Servicer will immediately notify the Trustee
(or the Custodian, as the case may be) by delivering, or causing to be delivered
a "Request for Release" substantially in the form of Exhibit M. Upon receipt of
such request, the Trustee (or the Custodian, as the case may be) shall within
three Business Days release the related Mortgage File to the Servicer, and the
Trustee shall within three Business Days of the Servicer's direction execute and
deliver to the Servicer the request for reconveyance, deed of reconveyance or
release or satisfaction of mortgage or such instrument releasing the lien of the
Mortgage in each case provided by the Servicer, together with the Mortgage Note
with written evidence of cancellation thereon. The Servicer is authorized to
cause the removal from the registration on the MERS(R) System of such Mortgage,
if applicable, and to execute and deliver, on behalf of the Trustee and the
Certificateholders or any of them, any and all instruments of satisfaction or
cancellation or of partial or full release. Expenses incurred in connection with
any instrument of satisfaction or deed of reconveyance shall be chargeable to
the related Mortgagor to the extent permitted by law and otherwise shall
constitute a Servicing Advance. From time to time and as shall be appropriate
for the servicing or foreclosure of any Mortgage Loan, including for such
purpose, collection under any policy of flood insurance, any fidelity bond or
errors or omissions policy, or for the purposes of effecting a partial release
of any Mortgaged Property from the lien of the Mortgage or the making of any
corrections to the Mortgage Note or the Mortgage or any of the other documents
included in the Mortgage File, the Trustee shall, within three Business Days of
delivery to the Trustee (or the Custodian, as the case may be) of a Request for
Release in the form of Exhibit M signed by a Servicing Officer, release the
Mortgage File to the Servicer. Subject to the further limitations set forth
below, the Servicer shall cause the Mortgage File or documents so released to be
returned to the Trustee (or the Custodian, as the case may be) when the need
therefor by the Servicer no longer exists, unless the Mortgage Loan is
liquidated and the proceeds thereof are deposited in the related Collection
Account, in which case the Servicer shall deliver to the Trustee (or the
Custodian, as the case may be) a Request for Release in the form of Exhibit M,
signed by a Servicing Officer.

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            If the Servicer at any time seeks to initiate a foreclosure
proceeding in respect of any Mortgaged Property as authorized by this Agreement,
the Servicer shall, if applicable, deliver or cause to be delivered to the
Trustee, for signature, as appropriate, any court pleadings, requests for
trustee's sale or other documents (which, if acceptable by the related court,
may be copies) necessary to effectuate such foreclosure or any legal action
brought to obtain judgment against the Mortgagor on the Mortgage Note or the
Mortgage or to obtain a deficiency judgment or to enforce any other remedies or
rights provided by the Mortgage Note or the Mortgage or otherwise available at
law or in equity.

            SECTION 3.13 Documents, Records and Funds in Possession of the
                         Servicer to be Held for the Trustee.

            Notwithstanding any other provisions of this Agreement, the Servicer
shall transmit to the Trustee as required by this Agreement all documents and
instruments in respect of a Mortgage Loan coming into the possession of the
Servicer from time to time required to be delivered to the Trustee pursuant to
the terms hereof and shall account fully to the Trustee for any funds received
by the Servicer or which otherwise are collected by the Servicer as Liquidation
Proceeds or Insurance Proceeds in respect of any Mortgage Loan. All Mortgage
Files and funds collected or held by, or under the control of, the Servicer in
respect of any Mortgage Loans, whether from the collection of principal and
interest payments or from Liquidation Proceeds, including but not limited to,
any funds on deposit in a Collection Account, shall be held by the Servicer for
and on behalf of the Trustee and shall be and remain the sole and exclusive
property of the Trustee, subject to the applicable provisions of this Agreement.
The Servicer also agrees that it shall not create, incur or subject any Mortgage
File or any funds that are deposited in the related Collection Account,
Certificate Account or any related Escrow Account, or any funds that otherwise
are or may become due or payable to the Trustee for the benefit of the
Certificateholders, to any claim, lien (other than the lien of a related First
Mortgage Loan), security interest, judgment, levy, writ of attachment or other
encumbrance, or assert by legal action or otherwise any claim or right of setoff
against any Mortgage File or any funds collected on, or in connection with, a
Mortgage Loan, except, however, that the Servicer shall be entitled to set off
against and deduct from any such funds any amounts that are properly due and
payable to the Servicer under this Agreement.

            SECTION 3.14 Servicing Fee.

            As compensation for its services hereunder, the Servicer shall be
entitled to withdraw from the Collection Account or to retain from interest
payments on the related Mortgage Loans the amount of its Servicing Fee for each
Mortgage Loan, less any amounts in respect of its Servicing Fee payable by the
Servicer pursuant to Section 3.05(b)(vi). The Servicing Fee is limited to, and
payable solely from, the interest portion of such Scheduled Payments collected
by the Servicer or as otherwise provided in Section 3.08.

            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
(including the payment of any expenses

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incurred in connection with any Subservicing Agreement entered into pursuant to
Section 3.02) and shall not be entitled to reimbursement thereof except as
specifically provided for in this Agreement.

            SECTION 3.15 Access to Certain Documentation.

            The Servicer shall provide to the OTS and the FDIC and to comparable
regulatory authorities supervising Holders of Subordinate Certificates and the
examiners and supervisory agents of the OTS, the FDIC and such other
authorities, access to the documentation regarding the related Mortgage Loans
required by applicable regulations of the OTS and the FDIC. Such access shall be
afforded without charge, but only upon reasonable and prior written request and
during normal business hours at the offices designated by the Servicer. Nothing
in this Section shall limit the obligation of the Servicer to observe any
applicable law prohibiting disclosure of information regarding the Mortgagors
and the failure of the Servicer to provide access as provided in this Section as
a result of such obligation shall not constitute a breach of this Section.
Nothing in this Section 3.15 shall require the Servicer to collect, create,
collate or otherwise generate any information that it does not generate in its
usual course of business.

            SECTION 3.16 Annual Statement as to Compliance.

            Not later than the earlier of (a) March 15 of each calendar year
(other than the calendar year during which the Closing Date occurs) or (b) with
respect to any calendar year during which the Depositor's annual report on Form
10-K is required to be filed in accordance with the Exchange Act and the rules
and regulations of the Commission, 15 calendar days before the date on which the
Depositor's annual report on Form 10-K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission (or, in
each case, if such day is not a Business Day, the immediately preceding Business
Day), the Servicer shall deliver to the Depositor, the Rating Agencies and the
Trustee an Officer's Certificate stating, as to the signer thereof, that (i) a
review of the activities of the Servicer during the preceding calendar year and
of the performance of the Servicer under this Agreement 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 obligations under this
Agreement throughout such year, or, if there has been a default in the
fulfillment of any such 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 3.17 Annual Independent Public Accountants' Servicing
                         Statement; Financial Statements.

            Not later than the earlier of (a) March 15 of each calendar year
(other than the calendar year during which the Closing Date occurs) or (b) with
respect to any calendar year during which the Depositor's annual report on Form
10-K is required to be filed in accordance with the Exchange Act and the rules
and regulations of the Commission, 15 calendar days before the date on which the
Depositor's annual report on Form 10-K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission (or, in
each

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case, if such day is not a Business Day, the immediately preceding Business
Day), the Servicer at its expense shall cause a nationally or regionally
recognized firm of independent public accountants (who may also render other
services to the Servicer, the Seller or any affiliate thereof) which is a member
of the American Institute of Certified Public Accountants to furnish a statement
to the Trustee and the Depositor to the effect that such firm has examined
certain documents and records relating to the servicing of mortgage loans which
the Servicer is servicing, which may include the related Mortgage Loans or
similar mortgage loans, and that, on the basis of such examination, conducted
substantially in compliance with the Uniform Single Attestation Program for
Mortgage Bankers or the Audit Guide for HUD Approved Title II Approved
Mortgagees and Loan Correspondent Programs, nothing has come to their attention
which would indicate that such servicing has not been conducted in compliance
with Accepted Servicing Practices, except for (a) such exceptions as such firm
shall believe to be immaterial, and (b) such other exceptions as shall be set
forth in such statement. In addition, the Servicer shall disclose to such firm
all significant deficiencies relating to the Servicer's compliance with the
minimum servicing standards set forth in this Agreement. In rendering such
statement, such firm may rely, as to matters relating to direct servicing of
mortgage loans by Subservicers, upon comparable statements for examinations
conducted substantially in compliance with the Uniform Single Attestation
Program for Mortgage Bankers or the Audit Guide for HUD Approved Title II
Approved Mortgagees and Loan Correspondent Programs (rendered within one year of
such statement) of independent public accountants with respect to the related
Subservicer. Copies of such statement shall be provided by the Trustee to any
Certificateholder upon request at the Servicer's expense, provided such
statement is delivered by the Servicer to the Trustee.

            SECTION 3.18 Maintenance of Fidelity Bond and Errors and Omissions
                         Insurance.

            The Servicer shall maintain with responsible companies, at its own
expense, a blanket Fidelity Bond and an Errors and Omissions Insurance Policy,
with broad coverage on all officers, employees or other persons acting in any
capacity requiring such persons to handle funds, money, documents or papers
relating to the related Mortgage Loans ("Servicer Employees"). The amount of
coverage under any such Fidelity Bond and Errors and Omissions Insurance Policy
shall be at least equal to the coverage maintained by the Servicer in order to
be acceptable to Fannie Mae or Freddie Mac to service loans for it or otherwise
in an amount as is commercially available at a cost that is generally not
regarded as excessive by industry standards. No provision of this Section 3.18
requiring such Fidelity Bond and Errors and Omissions Insurance Policy shall
diminish or relieve the Servicer from its duties and obligations as set forth in
this Agreement. The minimum coverage under any such bond and insurance policy
shall be at least equal to the corresponding amounts required by Fannie Mae.
Upon the request of the Trustee, the Servicer shall cause to be delivered to the
Trustee a certificate of insurance of the insurer and the surety including a
statement from the surety and the insurer that such fidelity bond and insurance
policy shall in no event be terminated or materially modified without 30 days'
prior written notice to the Trustee.

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            SECTION 3.19 Duties of the Credit Risk Manager.

            The Depositor appoints The Murrayhill Company as Credit Risk
Manager. For and on behalf of the Depositor, and the Trustee, the Credit Risk
Manager will provide the Depositor with reports and recommendations concerning
Mortgage Loans that are past due, as to which there has been commencement of
foreclosure, as to which there has been forbearance in exercise of remedies
which are in default, as to which obligor is the subject of bankruptcy,
receivership, or an arrangement of creditors, or as to which have become REO
Properties. Such reports and recommendations will be based upon information
provided to the Credit Risk Manager pursuant to the Credit Risk Management
Agreement and the Credit Risk Manager shall look solely to the Servicer for all
information and data (including loss and delinquency information and data) and
loan level information and data relating to the servicing of the Mortgage Loans.
Upon receipt of notice from the Credit Insurance Provider with respect to any
claim rejected by the Credit Insurance Provider (the "Claims Report") under the
Credit Insurance Policy, the Credit Risk Manager shall review any such rejected
claim and shall make a recommendation, based on the information provided by the
Credit Insurance Provider, as to whether the claim was rejected due to the
Servicer's failure to comply with the terms of the Credit Insurance Policy or
the claims-filing procedures of the Credit Insurance Provider. The Credit Risk
Manager shall promptly notify the Depositor, the Seller, the Servicer and the
Trustee with written information regarding such recommendation and the basis of
such recommendation along with the related Claims Report. If the Credit Risk
Manager is no longer able to perform its duties hereunder, the Depositor shall
terminate the Credit Risk Manager and cause the appointment of a successor
Credit Risk Manager. Upon any termination of the Credit Risk Manager or the
appointment of a successor Credit Risk Manager, the Depositor shall give written
notice thereof to the Seller, the Servicer, the Trustee and each Rating Agency.
Notwithstanding the foregoing, the termination of the Credit Risk Manager
pursuant to this Section 3.19 shall not become effective until the appointment
of a successor Credit Risk Manager.

            SECTION 3.20 Limitation Upon Liability of the Credit Risk Manager.

            Neither the Credit Risk Manager, nor any of the directors, officers,
employees or agents of the Credit Risk Manager, shall be under any liability to
the Trustee, the Certificateholders or the Depositor for any action taken or for
refraining from the taking of any action in good faith pursuant to this
Agreement, in reliance upon information provided by the Servicer under the
Credit Risk Management Agreement or of errors in judgment; provided, however,
that this provision shall not protect the Credit Risk Manager or any such person
against liability that would otherwise be imposed by reason of willful
malfeasance, bad faith or gross negligence in its performance of its duties
under this Agreement or the Credit Risk Manager Agreement. The Credit Risk
Manager and any director, officer, employee or agent of the Credit Risk Manager
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, and may
rely in good faith upon the accuracy of information furnished by the Servicer
pursuant to the Credit Risk Management Agreement in the performance of its
duties thereunder and hereunder.

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            SECTION 3.21 Advance Facility.

            (a) Wilshire is hereby authorized to enter into a financing or other
facility (any such arrangement, an "Advance Facility") under which (1) Wilshire
assigns or pledges to another Person (an "Advancing Person") the Servicer's
rights under this Agreement to be reimbursed for any Advances or Servicing
Advances and/or (2) an Advancing Person agrees to fund some or all Advances
and/or Servicing Advances required to be made by Wilshire pursuant to this
Agreement. No consent of the Trustee, Certificateholders or any other party is
required before Wilshire may enter into an Advance Facility; provided, however,
that the consent of the Trustee (which consent shall not be unreasonably
withheld) shall be required before Wilshire may cause to be outstanding at one
time more than one Advance Facility with respect to Advances or more than one
Advance Facility with respect to Servicing Advances. Notwithstanding the
existence of any Advance Facility under which an Advancing Person agrees to fund
Advances and/or Servicing Advances on the Servicer's behalf, Wilshire shall
remain obligated pursuant to this Agreement to make Advances and Servicing
Advances pursuant to and as required by this Agreement, and shall not be
relieved of such obligations by virtue of such Advance Facility. If Wilshire
enters into an Advance Facility, and for so long as an Advancing Person remains
entitled to receive reimbursement for any Advances or Servicing Advances
outstanding and previously unreimbursed pursuant to this Agreement, then
Wilshire may elect by providing written notice to the Trustee not to be
permitted to reimburse itself for Advances and/or Servicing Advances, as
applicable, pursuant to Section 3.08 of this Agreement, but following any such
election Wilshire shall be required to include amounts collected that would
otherwise be retained by Wilshire to reimburse it for previously unreimbursed
Advances ("Advance Reimbursement Amounts") and/or previously unreimbursed
Servicing Advances ("Servicing Advance Reimbursement Amounts" and together with
Advance Reimbursement Amounts, "Reimbursement Amounts") (in each case to the
extent such type of Reimbursement Amount is included in the Advance Facility) in
the remittance to the Trustee made pursuant to this Agreement to the extent of
amounts on deposit in the Collection Account on the related Servicer Cash
Remittance Date. Notwithstanding anything to the contrary herein, in no event
shall Advance Reimbursement Amounts or Servicing Advance Reimbursement Amounts
be included in Interest Remittance Amounts or Principal Remittance Amounts or
distributed to Certificateholders. Wilshire, if making the election set forth
herein, shall report to the Trustee the portions of the Reimbursement Amounts
that consist of Advance Reimbursement Amounts and Servicing Advance
Reimbursement Amounts, respectively.

            (b) If Wilshire enters into an Advance Facility and makes the
election set forth in Section 3.21(a), Wilshire and the related Advancing Person
shall deliver to the Trustee a written notice and payment instruction (an
"Advance Facility Notice"), providing the Trustee with written payment
instructions as to where to remit Advance Reimbursement Amounts and/or Servicing
Advance Reimbursement Amounts (each to the extent such type of Reimbursement
Amount is included within the Advance Facility) on subsequent Distribution
Dates. The payment instruction shall require the applicable Reimbursement
Amounts to be distributed to the Advancing Person or to a trustee or custodian
(an "Advance Facility Trustee") designated in the Advance Facility Notice. An
Advance Facility Notice may only be terminated by the joint written direction of
Wilshire and the related Advancing Person (and any related Advance Facility

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Trustee); provided, however, that the provisions of this Section 3.21 shall
cease to be applicable when all Advances and Servicing Advances funded by an
Advancing Person, and when all Advances and Servicing Advances (the rights to be
reimbursed for which have been assigned or pledged to an Advancing Person), have
been repaid to the related Advancing Person in full.

            (c) Reimbursement Amounts shall consist solely of amounts in respect
of Advances and/or Servicing Advances made with respect to the Mortgage Loans
for which Wilshire would be permitted to reimburse itself in accordance with
Section 3.08(ii), (iii) and (iv) hereof, assuming Wilshire had made the related
Advance(s) and/or Servicing Advance(s). Notwithstanding the foregoing, no Person
shall be entitled to reimbursement from funds held in the Collection Account for
future distribution to Certificateholders pursuant to the provisions of Section
4.01. The Trustee shall not have any duty or liability with respect to the
calculation of any Reimbursement Amount and shall be entitled to rely without
independent investigation on the Advance Facility Notice and on the Servicer's
report of the amount of Advance Reimbursement Amounts and Servicing Advance
Reimbursement Amounts that were included in the remittance from Wilshire to the
Trustee pursuant to Section 3.08(viii). Wilshire shall maintain and provide to
any successor Servicer a detailed accounting on a loan-by-loan basis as to
amounts advanced by, pledged or assigned to, and reimbursed to any Advancing
Person. The successor Servicer shall be entitled to rely on any such information
provided by Wilshire and the successor Servicer shall not be liable for any
errors in such information.

            (d) An Advancing Person who receives an assignment or pledge of the
rights to be reimbursed for Advances and/or Servicing Advances, and/or whose
obligations hereunder are limited to the funding of Advances and/or Servicing
Advances shall not be required to meet the criteria for qualification of a
Subservicer set forth in Section 3.02 hereof.

            (e) With respect to any Advance Facility pursuant to which Wilshire
has made the election set forth in Section 3.21(a), the documentation
establishing any Advance Facility shall require that Reimbursement Amounts
distributed with respect to each Mortgage Loan be allocated to outstanding
unreimbursed Advances or Servicing Advances (as the case may be) made with
respect to that Mortgage Loan on a "first-in, first-out" (FIFO) basis. Such
documentation shall also require Wilshire to provide to the related Advancing
Person or Advance Facility Trustee loan-by-loan information with respect to each
Reimbursement Amount distributed by the Trustee to such Advancing Person or
Advance Facility Trustee on each Distribution Date, to enable the Advancing
Person or Advance Facility Trustee to make the FIFO allocation of each
Reimbursement Amount with respect to each Mortgage Loan. Wilshire shall remain
entitled to be reimbursed by the Advancing Person or Advance Facility Trustee
for all Advances and Servicing Advances funded by Wilshire to the extent the
related rights to be reimbursed therefor have not been assigned or pledged to an
Advancing Person.

            (f) If Wilshire enters into an Advance Facility, Wilshire shall
indemnify the Trustee and the Trust and any successor Servicer, as applicable,
from and against any claims, losses, liabilities or damages resulting from any
claim by the related Advancing Person, except to the extent that such claim,
loss, liability or damage resulted from or arose out of negligence, recklessness
or willful misconduct on the part of the successor Servicer or the Trustee, or
failure

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by the successor Servicer or the Trustee to remit funds as required by Section
3.21(b). Any amendment to this Section 3.21 or to any other provision of this
Agreement that may be necessary or appropriate to effect the terms of an Advance
Facility as described generally in this Section 3.21, including amendments to
add provisions relating to a successor Servicer, may be entered into by the
Trustee, the Seller and Wilshire without the consent of any Certificateholder
notwithstanding anything to the contrary in Section 10.01 of or elsewhere in
this Agreement.

            SECTION 3.22 Maintenance of Credit Insurance Policy.

            The Servicer shall exercise its commercially reasonable efforts to
maintain and keep the Credit Insurance Policy in full force and effect
throughout the term of this Agreement, unless coverage thereunder has been
exhausted through payment of claims. The Trustee shall pay on each Distribution
Date in accordance with Section 4.02(a) the Credit Insurance Provider Fee from
amounts on deposit in the Certificate Account.

            In the event that Credit Insurance Policy is canceled or terminated
for any reason, or the claims-paying ability rating of the Credit Insurance
Provider is reduced below investment grade by both of the Rating Agencies, the
Servicer shall use its commercially reasonable efforts to obtain a replacement
Credit Insurance Policy from a Qualified Insurer that is acceptable to each
Rating Agency. Any such replacement policy will provide for an amount of
coverage equal to the then remaining coverage amount of the Credit Insurance
Policy, provided, however, that if the premium cost of the replacement policy
exceeds the premium cost of the Credit Insurance Policy, the coverage amount of
the replacement policy shall be reduced so that the premium cost therefore will
not exceed 100% of the premium cost of the Credit Insurance Policy.
Alternatively, at its option, the Depositor may provide other credit enhancement
acceptable to each Rating Agency, but is under no obligation to do so. In the
event that the claims-paying ability rating of the Credit Insurance Provider is
reduced to below investment grade by both of the Rating Agencies, upon receipt
by the Trustee of written notice of such downgrade of the Certificates and
written instruction from the Depositor, the Credit Insurance Policy shall be
canceled by the Trustee and the Credit Insurance Provider will not be entitled
to receive any additional premium payments after the related cancellation.

            In connection with its activities as administrator and servicer of
the Mortgage Loans, the Servicer agrees to file, on behalf of itself, the
Trustee, the Depositor and the Certificateholders claims and provide notices and
other information to the Credit Insurance Policy in a timely fashion in
accordance with the terms of the Credit Insurance Policy and, in this regard, to
take such action as reasonably shall be necessary to permit recovery under the
Credit Insurance Policy respecting a defaulted Old Republic Covered Loan. Any
amounts collected by the Servicer under the Credit Insurance Policy shall be
deposited in the Collection Account pursuant to Section 3.05. The Servicer shall
comply will all applicable terms of the Credit Insurance Policy and the
claims-filing procedures of the Credit Insurance Provider, to the extent
necessary to avoid any adjustments to claims paid under the Credit Insurance
Policy.

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                                   ARTICLE IV

                                DISTRIBUTIONS AND
                            ADVANCES BY THE SERVICER

            SECTION 4.01 Advances by the Servicer.

            The Servicer shall deposit in a Collection Account an amount equal
to all Scheduled Payments (with interest at the Mortgage Rate less the Servicing
Fee Rate) which were due but not received on the related Mortgage Loans during
the applicable Due Period; provided however, that with respect to any Balloon
Loan that is delinquent on its maturity date, the Servicer will not be required
to advance the related balloon payment but will be required to continue to make
Advances in accordance with this Section 4.01 with respect to such Balloon Loan
in an amount equal to an assumed scheduled payment that would otherwise be due
based on the original amortization schedule for that Mortgage Loan (with
interest at the Mortgage Rate less the Servicing Fee Rate). The Servicer's
obligation to make such Advances as to any related Mortgage Loan will continue
through the last Scheduled Payment due prior to the payment in full of such
Mortgage Loan, or through the date that the related Mortgaged Property has, in
the judgment of the Servicer, been completely liquidated; provided however, that
such obligation with respect to any Mortgage Loan shall cease if the Servicer
determines, in its reasonable opinion, that Advances with respect to such
Mortgage Loan are Nonrecoverable Advances; provided that the Servicer will be
required to make Advances until the earlier of (i) (x) if the Mortgage Loan is
an Old Republic Covered Loan and coverage under the Credit Insurance Policy is
available, through the earlier of (A) liquidation of the related Mortgaged
Property and (B) receipt of a payment with respect to such Mortgage Loan under
the Credit Insurance Policy and (y) if the Mortgage Loan is not an Old Republic
Covered Loan or if coverage under the Credit Insurance Policy is not available,
through the time at which the related Mortgage Loan becomes 120 days delinquent
or (ii) the time at which the Servicer determines that such Advances with
respect to such Mortgage Loan are Nonrecoverable Advances. In the event that the
Servicer determines that any such Advances are Nonrecoverable Advances, the
Servicer shall provide the Trustee with a certificate signed by a Servicing
Officer evidencing such determination.

            If an Advance is required to be made hereunder, the Servicer shall
on the second Business Day immediately preceding the Distribution Date
immediately following the related Determination Date either (i) deposit in the
Collection Account from its own funds an amount equal to such Advance, (ii)
cause to be made an appropriate entry in the records of the Collection Account
that funds in such account being held for future distribution or withdrawal have
been, as permitted by this Section 4.01, used by the Servicer to make such
Advance or (iii) make Advances in the form of any combination of clauses (i) and
(ii) aggregating the amount of such Advance. Any such funds being held in a
Collection Account for future distribution and so used shall be replaced by the
Servicer from its own funds by deposit in such Collection Account on or before
any future Distribution Date in which such funds would be due. The Servicer
shall

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be entitled to be reimbursed from the Collection Account for all Advances of its
own funds made pursuant to this Section as provided in Section 3.08.

            SECTION 4.02 Priorities of Distribution.

            (a) On each Distribution Date, prior to making distributions to the
holders of the Certificates, the Trustee first, shall pay itself the Trustee's
Fee for such Distribution Date, second, shall pay the Credit Risk Manager the
Credit Risk Manager Fee and third, shall remit to the Credit Insurance Provider
the Credit Insurance Provider Fee for such Distribution Date.

            (b) With respect to the Available Funds, including any funds
received from the Credit Insurance Policy, on each Distribution Date, the
Trustee shall withdraw such Available Funds from the Certificate Account and
based on the information provided to it by the Servicer, apply such funds to
distributions on the Certificates in the following order and priority and, in
each case, to the extent of such Available Funds remaining:

            (i) On each Distribution Date, the Trustee shall distribute the
      Interest Remittance Amount for such date in the following order of
      priority:

            A.    to the Senior Certificates, pro rata, Current Interest and any
                  Carryforward Interest, as applicable, for each such Class and
                  such Distribution Date;

            B.    to the Class M-1 Certificates, Current Interest and any
                  Carryforward Interest for such Class and such Distribution
                  Date;

            C.    to the Class M-2 Certificates, Current Interest and any
                  Carryforward Interest for such Class and such Distribution
                  Date;

            D.    to the Class B-1 Certificates, Current Interest and any
                  Carryforward Interest for such Class and such Distribution
                  Date;

            E.    to the Class B-2 Certificates, Current Interest and any
                  Carryforward Interest for such Class and such Distribution
                  Date;

            F.    to the Class B-3 Certificates, Current Interest and any
                  Carryforward Interest for such Class and such Distribution
                  Date;

            G.    on the Distribution Dates occurring in November 2004, December
                  2004 and January 2005, to the Depositor an amount equal to the
                  amount received during the related Due Period which
                  constitutes Subsequent Mortgage Loan Interest; and

            H.    for application in the same manner as the Monthly Excess
                  Cashflow for such Distribution Date as provided in clause (iv)
                  of this Section 4.02(b), any Interest Remittance Amount
                  remaining after application pursuant to clauses A. through G.
                  above.

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            (ii) On each Distribution Date (a) prior to the Stepdown Date or (b)
      with respect to which a Trigger Event has occurred, the Trustee shall
      distribute the Principal Payment Amount for such date in the following
      order of priority:

            A.    commencing on the Distribution Date in January 2010, to the
                  Class P Certificates, until the Class Principal Balance of
                  such class has been reduced to zero;

            B.    first to the Class A-R Certificates and Class A-RL
                  Certificates, concurrently on a pro rata basis, based on their
                  respective Class Principal Balances, until the Class Principal
                  Balance of each such Class has been reduced to zero, and then
                  sequentially, to the Class A-1 Certificates and Class A-2
                  Certificates, in that order, in each case until the Class
                  Principal Balance thereof has been reduced to zero;

            C.    to the Class M-1 Certificates, until the Class Principal
                  Balance of such Class has been reduced to zero;

            D.    to the Class M-2 Certificates, until the Class Principal
                  Balance of such Class has been reduced to zero;

            E.    to the Class B-1 Certificates, until the Class Principal
                  Balance of such Class has been reduced to zero;

            F.    to the Class B-2 Certificates, until the Class Principal
                  Balance of such Class has been reduced to zero;

            G.    to the Class B-3 Certificates, until the Class Principal
                  Balance of such Class has been reduced to zero; and

            H.    for application in the same manner as the Monthly Excess
                  Cashflow for such Distribution Date, as provided in clause
                  (iv) of this Section 4.02(b), any Principal Payment Amount
                  remaining after application pursuant to clauses A. through G.
                  above.

            (iii) On each Distribution Date (a) on or after the Stepdown Date
      and (b) with respect to which a Trigger Event has not occurred, the
      Trustee shall distribute the Principal Payment Amount for such date in the
      following order of priority:

            A.    commencing on the Distribution Date in January 2010 or
                  thereafter, to the Class P Certificates, until the Class
                  Principal Balance of such Class has been reduced to zero;

            B.    to the Class A-1 Certificates and Class A-2 Certificates, the
                  Senior Principal Payment Amount for such Distribution Date,
                  distributed sequentially to the Class A-1 Certificates and
                  Class A-2 Certificates, in

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                  that order, in each case until the Class Principal Balance
                  thereof has been reduced to zero;

            C.    to the Class M-1 Certificates, the Class M-1 Principal Payment
                  Amount for such Distribution Date, until the Class Principal
                  Balance of such Class has been reduced to zero;

            D.    to the Class M-2 Certificates, the Class M-2 Principal Payment
                  Amount for such Distribution Date, until the Class Principal
                  Balance of such Class has been reduced to zero;

            E.    to the Class B-1 Certificates, the Class B-1 Principal Payment
                  Amount for such distribution date, until the Class Principal
                  Balance of such class has been reduced to zero;

            F.    to the Class B-2 Certificates, the Class B-2 Principal Payment
                  Amount for such Distribution Date, until the Class Principal
                  Balance of such Class has been reduced to zero;

            G.    to the Class B-3 Certificates, the Class B-3 Principal Payment
                  Amount for such Distribution Date, until the Class Principal
                  Balance of such Class has been reduced to zero;

            H.    for application as part of Monthly Excess Cashflow for such
                  Distribution Date, as provided in clause (iv) of this Section
                  4.02(b), any Principal Payment Amount remaining after
                  application pursuant to clauses A. through G. above.

            (iv) On each Distribution Date, the Trustee shall distribute the
      Monthly Excess Cashflow for such date in the following order of priority:

            A.    an amount equal to the aggregate Realized Losses on the
                  Mortgage Loans incurred during the related Collection Period,
                  such amount to be added to the Principal Payment Amount and
                  distributed as set forth above in Section 4.02(b)(ii) and
                  (iii) (any such amount, an "Excess Cashflow Loss Payment");

            B.    on the Distribution Date in November 2004, an amount equal to
                  the Monthly Excess Cashflow remaining after the distribution
                  in clause (iv)A. above to the Class X-1 Certificates;

            C.    (I)   except for the first Distribution Date, until the
                        Overcollateralization Amount equals the Targeted
                        Overcollateralization Amount for such date, on each
                        Distribution Date (a) prior to the Stepdown Date or (b)
                        with respect to which a Trigger Event has occurred, to
                        the extent of Monthly Excess

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                        Interest for such Distribution Date, to fund any
                        principal distributions to the Class A-1, Class A-2,
                        Class A-R, Class A-RL, Class P, Class M-1, Class M-2,
                        Class B-1, Class B-2 and Class B-3 Certificates required
                        to be made on such Distribution Date set forth above in
                        clause (ii) above, after giving effect to the
                        distribution of the Principal Payment Amount for such
                        Distribution Date, in accordance with the priorities set
                        forth therein.

                  (II)  on each Distribution Date on or after the Stepdown Date
                        and with respect to which a Trigger Event has not
                        occurred, to fund any principal distributions to the
                        Class A-1, Class A-2, Class A-R, Class A-RL, Class P,
                        Class M-1, Class M-2, Class B-1, Class B-2 and Class B-3
                        Certificates required to be made on such Distribution
                        Date set forth above in clause (iii) above, after giving
                        effect to the distribution of the Principal Payment
                        Amount for such Distribution Date, in accordance with
                        the priorities set forth therein;

            D.    to the Class M-1 Certificates, any Deferred Amount for such
                  Class, with interest thereon at the Pass-Through Rate for such
                  Class;

            E.    to the Class M-2 Certificates, any Deferred Amount for such
                  Class, with interest thereon at the Pass-Through Rate for such
                  Class;

            F.    to the Class B-1 Certificates, any Deferred Amount for such
                  Class, with interest thereon at the Pass-Through Rate for such
                  Class;

            G.    to the Class B-2 Certificates, any Deferred Amount for such
                  Class, with interest thereon at the Pass-Through Rate for such
                  Class;

            H.    to the Class B-3 Certificates, any Deferred Amount for such
                  Class, with interest thereon at the Pass-Through Rate for such
                  Class;

            I.    to the Class X-1 Certificate, the Class X-1 Distributable
                  Amount for such Distribution Date reduced by amounts
                  distributed pursuant to clause L. of Section 4.02(b)(i) for
                  such Distribution Date, the amount of any
                  Overcollateralization Release Amount for such Distribution
                  Date and, for any Distribution Date on or after which the
                  aggregate Class Principal Balance of the Regular Certificates
                  has been reduced to zero, the Overcollateralization Amount;
                  and

            J.    to the Class A-R Certificate or Class A-RL Certificate, as
                  applicable, any remaining amount; provided, however that any
                  amount that would be distributable pursuant to this priority
                  J. shall not

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                  be paid with respect to the Class A-R Certificate or Class
                  A-RL Certificates, as applicable, but shall be paid instead
                  with respect to the Class X-1 Certificates pursuant to a
                  contract that exists under this Agreement between the Class
                  A-R Certificateholders or Class A-RL Certificateholders and
                  the Class X-1 Certificateholders.

            (v) On each Distribution Date, the Trustee shall distribute to the
      Holder of the Class P Certificate, the aggregate of all Prepayment Charges
      collected during the preceding Prepayment Period.

            (vi) [reserved]

            (vii) On each Distribution Date, following the foregoing
      distributions, an amount equal to the amount of Net Recoveries included in
      the Available Funds for such Distribution Date shall be applied to
      increase the Class Principal Balance of the Class of Certificates with the
      Highest Priority up to the extent of such Realized Losses previously
      allocated to that Class of Certificates pursuant to Section 4.05. An
      amount equal to the amount of any remaining Net Recoveries shall be
      applied to increase the Class Principal Balance of the Class of
      Certificates with the next Highest Priority, up to the amount of such
      Realized Losses previously allocated to that Class of Certificates
      pursuant to Section 4.05, and so on. Holders of such Certificates will not
      be entitled to any distribution in respect of interest on the amount of
      such increases for any Interest Accrual Period preceding the Distribution
      Date on which such increase occurs. Any such increases shall be applied to
      the Class Principal Balance of each Certificate of such Class in
      accordance with its respective Percentage Interest.

            SECTION 4.03 [Reserved]

            SECTION 4.04 [Reserved]

            SECTION 4.05 Allocation of Realized Losses.

            On each Distribution Date, the Trustee shall determine the total of
the Applied Loss Amount, if any, for such Distribution Date. The Applied Loss
Amount for any Distribution Date shall be applied by reducing the Class
Principal Balance of each Class of Subordinate Certificates beginning with the
Class of Subordinate Certificates then outstanding with the lowest relative
payment priority, in each case until the respective Class Principal Balance
thereof is reduced to zero. Any Applied Loss Amount allocated to a Class of
Subordinate Certificates shall be allocated among the Subordinate Certificates
of such Class in proportion to their respective Percentage Interests.

            All Realized Losses on the Mortgage Loans shall be allocated on each
Distribution Date to the following REMIC 1 Regular Interests: first, to REMIC 1
Regular Interests LTI-1 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC 1 Regular Interest LTI-PF until the
Uncertificated Principal Balance thereof has been reduced to zero, however, that
with respect to the first three Distribution Dates, Realized Losses

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relating to the Initial Mortgage Loans shall be allocated to REMIC 1 Regular
Interest LTI-1 and Realized Losses relating to the Subsequent Mortgage Loans
shall be allocated to REMIC 1 Regular Interest LTI-PF until the Uncertificated
Principal Balance thereof has been reduced to zero. All Realized Losses on the
REMIC 1 Regular Interests LTI-1 and LTI-PF shall be deemed to have been
allocated to the following REMIC 2 Regular Interests in the specified
percentages, as follows: first to Uncertificated Accrued Interest payable to the
REMIC 2 Regular Interests MTI-AA and MTI-ZZ up to an aggregate amount equal to
the excess of (a) the REMIC 2 Interest Loss Allocation Amount over (b)
Prepayment Interest Shortfalls (to the extent not covered by Compensating
Interest) relating to the Mortgage Loans for such Distribution Date, 98% and 2%,
respectively; second, to the Uncertificated Principal Balances of the REMIC 2
Regular Interests MTI-AA and MTI-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 MTI-AA, REMIC 2
Regular Interest MTI-B-3 and REMIC 2 Regular Interest MTI-ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 2 Regular
Interests MTI-B-3 have been reduced to zero; fourth, to the Uncertificated
Principal Balances of REMIC 2 Regular Interest MTI-AA, REMIC 2 Regular Interest
MTI-B-2 and REMIC 2 Regular Interest MTI-ZZ, 98%, 1% and 1%, respectively, until
the Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-B-2 has
been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2
Regular Interest MTI-AA, REMIC 2 Regular Interest MTI-B-1 and REMIC 2 Regular
Interest MTI-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of REMIC 2 Regular Interest MTI-B-1 has been reduced to zero;
sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest
MTI-AA, REMIC 2 Regular Interest MTI-M-2 and REMIC 2 Regular Interest MTI-ZZ,
98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of
REMIC 2 Regular Interest MTI-M-2 has been reduced to zero; and seventh, to the
Uncertificated Principal Balances of REMIC 2 Regular Interest MTI-AA, REMIC 2
Regular Interest MTI-M-1 and REMIC 2 Regular Interest MTI-ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 2 Regular
Interest MTI-M-1 has been reduced to zero.

            SECTION 4.06 Monthly Statements to Certificateholders.

            (a) Not later than each Distribution Date, the Trustee shall
prepare, and make available on the website maintained by the Trustee at
http://www.jpmorgan.com/sfr, a statement setting forth with respect to the
related distribution, the items listed on Exhibit V.

            Assistance in using the website can be obtained by calling the
Trustee's customer service desk at 877-722-1095. Parties that are unable to use
the website are entitled to have a paper copy mailed to them via first class
mail by written notice to the Trustee at its Corporate Trust Office. The
Trustee's responsibility for disbursing the above information to the
Certificateholders is limited to the availability, timeliness and accuracy of
the information derived from the Servicer. The foregoing information shall be
reported to the Trustee each month on or before the Servicer Data Remittance
Date.

            (b) Within a reasonable period of time after the end of each
calendar year, the Trustee shall cause to be furnished to each Person who at any
time during the calendar year was

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a Certificateholder, a statement containing the information set forth in, items
(i)(c), (i)(d), (i)(g), (i)(j), (i)(k), (ii)(c), (ii)(d), (ii)(g), (ii)(i),
(v)(d), (v)(e) and (v)(s) of Exhibit V aggregated for such calendar year or
applicable portion thereof during which such Person was a Certificateholder.
Such obligation of the Trustee shall be deemed to have been satisfied to the
extent that substantially comparable information shall be provided by the
Trustee pursuant to any requirements of the Code as from time to time in effect.

            SECTION 4.07 Distributions on the REMIC 1 Regular Interests and
REMIC 2 Regular Interests.

            (a) Distributions on the REMIC 1 Regular Interests.

            On each Distribution Date, the Trustee shall cause in the following
order of priority, the following amounts to be distributed by REMIC 1 to REMIC 2
on account of the REMIC 1 Regular Interests or withdrawn from the Distribution
Account and distributed to the holders of the Class A-RL Certificates, as the
case may be:

            (i) first, to the Holders of REMIC 1 Regular Interests LTI-P and
      LTI-R, in an amount equal to (x) the related Uncertificated Accrued
      Interest for such Distribution Date, plus (y) any amounts in respect
      thereof remaining unpaid from previous Distribution Dates and second, to
      Holders of Uncertificated REMIC 1 Regular Interests LTI-1 and LTI-PF an
      amount equal to (x) the related Uncertificated Accrued Interest for such
      Distribution Date, plus (y) any amounts in respect thereof remaining
      unpaid from previous Distribution Dates;

            (ii) to the Holders of REMIC 1 Regular Interests, in an amount equal
      to the remainder of the Available Funds for such Distribution Date after
      the distributions made pursuant to clause (i) above and, in the case of
      distributions made pursuant to Section 4.07(a)(ii)(b), the amount of any
      Prepayment Charges for such Distribution Date, allocated as follows:

                  (a) to the Holders of REMIC 1 Regular Interest LTI-R, an
            amount equal to the amount of principal distributed to the holder of
            the Corresponding Uncertificated Interest on such Distribution Date
            pursuant to Section 4.07(b)(ii)(a);

                  (b) to the Holders of REMIC 1 Regular Interest LTI-P, an
            amount equal to the amount distributed to the holder of the
            Corresponding Uncertificated Interest on such Distribution Date
            pursuant to Section 4.07(b)(ii)(b);

                  (c) to the Holders of REMIC 1 Regular Interest LTI-1, until
            the Uncertificated Principal Balance of Uncertificated REMIC 1
            Regular Interest LTI-1 is reduced to zero;

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<PAGE>

                  (d) to the Holders of REMIC 1 Regular Interest LTI-1PF, until
            the Uncertificated Principal Balance of REMIC 1 Regular Interest
            LTI-1PF is reduced to zero; and

            (iii) any remaining amount to the Holders of the Class A-RL
Certificates;

provided, however, that for the first three Distribution Dates, such amounts
constituting Available Funds relating to the Initial Mortgage Loans shall be
allocated to REMIC 1 Regular Interest LTI-1, and such amounts constituting
Available Funds relating to the Subsequent Mortgage Loans and shall be allocated
to REMIC 1 Regular Interest LT-1PF.

            (b) Distributions on the REMIC 2 Regular Interests.

            On each Distribution Date, the Trustee shall cause in the following
order of priority, the following amounts to be distributed by REMIC 2 to REMIC 3
on account of the REMIC 2 Regular Interests or withdrawn from the Distribution
Account and distributed to the holders of the Class A-R Certificates (in respect
of the Class R-2 Interest), as the case may be:

            (i) first, to the extent of the sum of Available Funds for such
      Distribution Date, to Holders of REMIC 2 Regular Interests MTI-AA,
      MTI-A-1, MTI-A-2, MTI-M-1, MTI-M-2, MTI-B-1, MTI-B-2, MTI-B-3, MTI-ZZ,
      MTI-P and MTI-R pro rata, in an amount equal to (A) the Uncertificated
      Accrued Interest for such Distribution Date, plus (B) any amounts in
      respect thereof remaining unpaid from previous Distribution Dates. Amounts
      payable as Uncertificated Accrued Interest in respect of REMIC 2 Regular
      Interest MTI-ZZ shall be reduced when the REMIC 2 Overcollateralization
      Amount is less than the REMIC 2 Overcollateralization Target Amount, by
      the lesser of (x) the amount of such difference and (y) the REMIC 2
      Regular Interest MTI-ZZ Maximum Interest Deferral Amount and such amount
      will be payable to the Holders of REMIC 2 Regular Interest MTI-A-1, REMIC
      2 Regular Interest MTI-A-2, REMIC 2 Regular Interest MTI-M-1, REMIC 2
      Regular Interest MTI-M-2, REMIC 2 Regular Interest MTI-B-1, REMIC 2
      Regular Interest MTI-B-2 and REMIC 2 Regular Interest MTI-B-3 in the same
      proportion as the amounts are allocated to the Corresponding
      Uncertificated Interest, pursuant to Section 4.07(c) herein, for each such
      REMIC 2 Regular Interest, and the Uncertificated Principal Balance of the
      REMIC 2 Regular Interest MTI-ZZ shall be increased by such amount;

            (ii) second, to the Holders of REMIC 2 Regular Interests, in an
      amount equal to the remainder of the Available Funds for such Distribution
      Date after the distributions made pursuant to clause (i) above and, in the
      case of distributions made pursuant to Section 4.07(b)(ii)(b), the amount
      of any Prepayment Charges for such Distribution Date, allocated as
      follows:

                  (a) to the Holders of REMIC 2 Regular Interest MTI-R, an
            amount equal to the amount of principal distributed to the holder of
            the Corresponding Certificate on such Distribution Date pursuant to
            Section 4.07(c); and

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<PAGE>

                  (b) to the Holders of REMIC 2 Regular Interest MTI-P, an
            amount equal to the amount of principal distributed to the holder of
            the Corresponding Certificate on such Distribution Date pursuant to
            Section 4.07(c); and

            (iii) third, to the Holders of REMIC 2 Regular Interests, in an
      amount equal to the remainder of the 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 MTI-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 Holders of REMIC 2
            Regular Interest MTI-A-1, MTI-A-2, MTI-M-1, MTI-M-2, MTI-B-1,
            MTI-B-2 and MTI-B-3, equal to 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 MTI-ZZ, 1.00% of such remainder, 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 A-R
            Certificates (in respect of the Class R-2 Interest).

            SECTION 4.08 [Reserved].

            SECTION 4.09 Prepayment Charges.

            Notwithstanding anything in this Agreement to the contrary, in the
event of a Principal Prepayment of a Mortgage Loan, the Servicer may not waive
any Prepayment Charge or portion thereof required by the terms of the related
Mortgage Note unless (i) the Mortgage Loan is in default or foreseeable default
and such waiver (a) is standard and customary in servicing similar mortgage
loans to the Mortgage Loans and (b) would, in the reasonable judgment of the
Servicer, maximize recovery of total proceeds taking into account the value of
such Prepayment Charge and the related Mortgage Loan or (ii)(A) the
enforceability thereof is limited (1) by bankruptcy, insolvency, moratorium,
receivership, or other similar law relating to creditors' rights generally or
(2) due to acceleration in connection with a foreclosure or other involuntary
payment, or (B) the enforceability is otherwise limited or prohibited by
applicable law. For the avoidance of doubt, the Servicer may waive a Prepayment
Charge in connection with a short sale or short payoff on a defaulted Mortgage
Loan. If the Servicer has waived all or a portion of a Prepayment Charge
relating to a Principal Prepayment, other than as provided above, the Servicer
shall deliver to the Trustee no later than the Business Day immediately
preceding the next Distribution Date, for deposit into the Certificate Account
the amount of such Prepayment Charge (or such portion thereof as had been
waived) for distribution in accordance

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with the terms of this Agreement; provided, however, the Servicer shall not have
any obligation to pay the amount of any uncollected Prepayment Charge under this
Section 4.09 if the Servicer did not have a copy of the related Mortgage Note,
the Servicer requested via email a copy of the same from the Trustee and the
Trustee failed to provide such a copy within two (2) Business Days of receipt of
such request. If the Servicer has waived all or a portion of a Prepayment Charge
for any reason, it shall promptly notify the Trustee thereof and shall include
such information in any monthly reports it provides the Trustee. Notwithstanding
any provision in this Agreement to the contrary, in the event the Prepayment
Charge payable under the terms of the Mortgage Note is different from the amount
of the Prepayment Charge set forth in the Mortgage Loan Schedule or other
information provided to the Servicer, the Servicer shall rely conclusively on
the Prepayment Charge as set forth under the terms of the Mortgage Note. To the
extent the Prepayment Charge payable under the terms of the Mortgage Note is
less than the amount of the Prepayment Charge set forth in the Mortgage Loan
Schedule or other information provided to the Servicer, the Servicer shall not
have any liability or obligation with respect to such difference, and in
addition shall not have any liability or obligation to pay the amount of any
uncollected Prepayment Charge if the failure to collect such amount is the
direct result of inaccurate or incomplete information on the Mortgage Loan
Schedule.

            SECTION 4.10 Servicer to Cooperate.

            The Servicer shall provide to the Trustee the information set forth
in Exhibit Z hereto in such form as the Trustee shall reasonably request with
respect to each Mortgage Loan no later than twelve noon on the Servicer Data
Remittance Date to enable the Trustee to calculate the amounts to be distributed
to each Class of Certificates and otherwise perform its distribution, accounting
and reporting requirements hereunder.

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                                   ARTICLE V

                                THE CERTIFICATES

            SECTION 5.01 The Certificates.

            The Certificates shall be substantially in the forms attached hereto
as exhibits. The Certificates shall be issuable in registered form, in the
minimum denominations, integral multiples in excess thereof (except that one
Certificate in each Class may be issued in a different amount which must be in
excess of the applicable minimum denomination) and aggregate denominations per
Class set forth in the Preliminary Statement.

            Subject to Section 9.02 respecting the final distribution on the
Certificates, on each Distribution Date the Trustee shall make distributions to
each Certificateholder of record on the preceding Record Date either (x) by wire
transfer in immediately available funds to the account of such holder at a bank
or other entity having appropriate facilities therefor, if (i) such Holder has
so notified the Trustee at least five Business Days prior to the related Record
Date and (ii) such Holder shall hold (A) a Notional Amount Certificate, (B) 100%
of the Class Principal Balance of any Class of Certificates or (C) Certificates
of any Class with aggregate principal Denominations of not less than $1,000,000
or (y) by check mailed by first class mail to such Certificateholder at the
address of such holder appearing in the Certificate Register.

            The Certificates shall be executed by manual or facsimile signature
on behalf of the Trustee by an authorized officer upon the written order of the
Depositor. Certificates bearing the manual or facsimile signatures of
individuals who were, at the time such signatures were affixed, authorized to
sign on behalf of the Trustee shall bind the Trustee, notwithstanding that such
individuals or any of them have ceased to be so authorized prior to the
countersignature and delivery of any such Certificates or did not hold such
offices at the date of such Certificate. No Certificate shall be entitled to any
benefit under this Agreement, or be valid for any purpose, unless countersigned
by the Trustee by manual signature, and such countersignature upon any
Certificate shall be conclusive evidence, and the only evidence, that such
Certificate has been duly executed and delivered hereunder. All Certificates
shall be dated the date of their countersignature. On the Closing Date, the
Trustee shall countersign the Certificates to be issued at the written direction
of the Depositor, or any affiliate thereof.

            The Depositor shall provide, or cause to be provided, to the Trustee
on a continuous basis, an adequate inventory of Certificates to facilitate
transfers.

            The Trustee shall have no obligation or duty to monitor, determine
or inquire as to compliance with any restriction or transfer imposed under
Article V of this Agreement or under applicable law with respect to any transfer
of any Certificate, or any interest therein, other than to require delivery of
the certification(s) and/or opinions of counsel described in Article V
applicable with respect to changes in registration of record ownership of
Certificates in the Certificate Register. The Trustee shall have no liability
for transfers, including transfers made

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through the book-entry facilities of the Depository or between or among
Depository Participants or beneficial owners of the Certificates made in
violation of applicable restrictions.

            SECTION 5.02 Certificate Register; Registration of Transfer and
Exchange of Certificates.

            (a) The Trustee shall maintain, or cause to be maintained in
accordance with the provisions of Section 5.06, a Certificate Register for the
Trust Fund in which, subject to the provisions of subsections (b) and (c) below
and to such reasonable regulations as it may prescribe, the Trustee shall
provide for the registration of Certificates and of transfers and exchanges of
Certificates as herein provided. Upon surrender for registration of transfer of
any Certificate, the Trustee shall execute and deliver, in the name of the
designated transferee or transferees, one or more new Certificates of the same
Class and aggregate Percentage Interest.

            At the option of a Certificateholder, Certificates may be exchanged
for other Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest upon surrender of the
Certificates to be exchanged at the office or agency of the Trustee. Whenever
any Certificates are so surrendered for exchange, the Trustee shall execute,
authenticate, and deliver the Certificates which the Certificateholder making
the exchange is entitled to receive. Every Certificate presented or surrendered
for registration of transfer or exchange shall be accompanied by a written
instrument of transfer in form satisfactory to the Trustee duly executed by the
holder thereof or his attorney duly authorized in writing.

            No service charge to the Certificateholders shall be made for any
registration of transfer or exchange of Certificates, but payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of Certificates may be required.

            All Certificates surrendered for registration of transfer or
exchange shall be canceled and subsequently disposed of by the Trustee in
accordance with the Trustee's customary procedures.

            (b) No transfer of a Private Certificate shall be made unless such
transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under said Act and such state securities laws. Except
in connection with any transfer of a Private Certificate by the Depositor to any
affiliate, in the event that a transfer is to be made in reliance upon an
exemption from the Securities Act and such laws, in order to assure compliance
with the Securities Act and such laws, the Certificateholder desiring to effect
such transfer and such Certificateholder's prospective transferee shall each
certify to the Trustee in writing the facts surrounding the transfer in
substantially the form set forth in Exhibit J (the "Transferor Certificate") and
(i) deliver a letter in substantially the form of either (A) Exhibit K (the
"Investment Letter") provided that all of the Class X Certificates of a Class
shall be transferred to one investor or the Depositor otherwise consents to such
transfer, or (B) Exhibit L (the "Rule 144A Letter") or (ii)

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there shall be delivered to the Trustee at the expense of the transferor an
Opinion of Counsel that such transfer may be made pursuant to an exemption from
the Securities Act. The Depositor shall provide to any Holder of a Private
Certificate and any prospective transferee designated by any such Holder,
information regarding the related Certificates and the Mortgage Loans and such
other information as shall be necessary to satisfy the condition to eligibility
set forth in Rule 144A(d)(4) for transfer of any such Certificate without
registration thereof under the Securities Act pursuant to the registration
exemption provided by Rule 144A. The Trustee and the Servicer shall cooperate
with the Depositor in providing the Rule 144A information referenced in the
preceding sentence, including providing to the Depositor such information
regarding the Certificates, the Mortgage Loans and other matters regarding the
Trust Fund as the Depositor shall reasonably request to meet its obligation
under the preceding sentence. Each Holder of a Private Certificate desiring to
effect such transfer shall, and does hereby agree to, indemnify the Trustee, the
Depositor, the Seller and the Servicer 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 an ERISA-Restricted Certificate shall be made unless
the Trustee shall have received either (i) a representation from the transferee
of such Certificate, acceptable to and in form and substance satisfactory to the
Trustee (in the event such Certificate is a Private Certificate or a Residual
Certificate, such requirement is satisfied only by the Trustee's receipt of a
representation letter from the transferee substantially in the form of Exhibit K
or Exhibit L, or Exhibit I, as applicable), to the effect that such transferee
is not an employee benefit plan or arrangement subject to Section 406 of ERISA
or a plan subject to Section 4975 of the Code, nor a person acting on behalf of
any such plan or arrangement nor using the assets of any such plan or
arrangement to effect such transfer or (ii) in the case of any such
ERISA-Restricted Certificate presented for registration in the name of an
employee benefit plan subject to ERISA, or a plan or arrangement subject to
Section 4975 of the Code (or comparable provisions of any subsequent
enactments), or a trustee of any such plan or any other person acting on behalf
of any such plan or arrangement or using such plan's or arrangement's assets, an
Opinion of Counsel satisfactory to the Trustee, which Opinion of Counsel shall
not be an expense of either the Trustee or the Trust Fund, addressed to the
Trustee for the benefit of the Trustee, the Depositor and the Servicer and on
which they may rely, to the effect that the purchase or holding of such
ERISA-Restricted Certificate will not result in the assets of the Trust Fund
being deemed to be "plan assets" and subject to the prohibited transaction
provisions of ERISA and the Code and will not subject the Trustee, the Depositor
or the Servicer to any obligation in addition to those expressly undertaken in
this Agreement or to any liability. Notwithstanding anything else to the
contrary herein, any purported transfer of an ERISA-Restricted Certificate to or
on behalf of an employee benefit plan subject to ERISA or to the Code without
the delivery to the Trustee of an Opinion of Counsel satisfactory to the Trustee
as described above shall be void and of no effect.

            To the extent permitted under applicable law (including, but not
limited to, ERISA), the Trustee shall be under no liability to any Person for
any registration of transfer of any ERISA-Restricted Certificate that is in fact
not permitted by this Section 5.02(b) or for making any payments due on such
Certificate to the Holder thereof or taking any other action with respect to
such Holder under the provisions of this Agreement so long as the transfer was
registered by the Trustee in accordance with the foregoing requirements.

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            (c) 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
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:

            (i) Each Person holding or acquiring any Ownership Interest in a
      Residual Certificate shall be a Permitted Transferee and shall promptly
      notify the Trustee of any change or impending change in its status as a
      Permitted Transferee.

            (ii) No Ownership Interest in a Residual Certificate may be
      registered on the Closing Date or thereafter transferred, and the Trustee
      shall not register the Transfer of any Residual Certificate unless, in
      addition to the certificates required to be delivered to the Trustee under
      subparagraph (b) above, the Trustee shall have been furnished with an
      affidavit (a "Transfer Affidavit") of the initial owner or the proposed
      transferee in the form attached hereto as Exhibit I.

            (iii) Each Person holding or acquiring any Ownership Interest in a
      Residual Certificate shall agree (A) to obtain a Transfer Affidavit from
      any other Person to whom such Person attempts to Transfer its Ownership
      Interest in a Residual Certificate, (B) to obtain a Transfer Affidavit
      from any Person for whom such Person is acting as nominee, trustee or
      agent in connection with any Transfer of a Residual Certificate and (C)
      not to Transfer its Ownership Interest in a Residual Certificate or to
      cause the Transfer of an Ownership Interest in a Residual Certificate to
      any other Person if it has actual knowledge that such Person is not a
      Permitted Transferee.

            (iv) Any attempted or purported Transfer of any Ownership Interest
      in a Residual Certificate in violation of the provisions of this Section
      5.02(c) shall be absolutely null and void and shall vest no rights in the
      purported Transferee. If any purported transferee shall become a Holder of
      a Residual Certificate in violation of the provisions of this Section
      5.02(c), then the last preceding Permitted Transferee shall be restored to
      all rights as Holder thereof retroactive to the date of registration of
      Transfer of such Residual Certificate. The Trustee shall be under no
      liability to any Person for any registration of Transfer of a Residual
      Certificate that is in fact not permitted by Section 5.02(b) and this
      Section 5.02(c) or for making any payments due on such Certificate to the
      Holder thereof or taking any other action with respect to such Holder
      under the provisions of this Agreement so long as the Transfer was
      registered after receipt of the related Transfer Affidavit and Transferor
      Certificate. The Trustee shall be entitled but not obligated to recover
      from any Holder of a Residual Certificate that was in fact not a Permitted
      Transferee at the time it became a Holder or, at such subsequent time as
      it became other than a Permitted Transferee, all payments made on such
      Residual Certificate at and after either such time. Any such payments so
      recovered by the Trustee shall be paid and delivered by the Trustee to the
      last preceding Permitted Transferee of such Certificate.

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            (v) The Depositor shall use its best efforts to make available, upon
      receipt of written request from the Trustee, all information necessary to
      compute any tax imposed under Section 860E(e) of the Code as a result of a
      Transfer of an Ownership Interest in a Residual Certificate to any Holder
      who is not a Permitted Transferee.

            The restrictions on Transfers of a Residual Certificate set forth in
this Section 5.02(c) shall cease to apply (and the applicable portions of the
legend on a Residual Certificate may be deleted) with respect to Transfers
occurring after delivery to the Trustee of an Opinion of Counsel, which Opinion
of Counsel shall not be an expense of the Trust Fund, the Trustee, the Seller or
the Servicer, to the effect that the elimination of such restrictions will not
cause the Trust Fund hereunder to fail to qualify as a REMIC at any time that
the Certificates are outstanding or result in the imposition of any tax on the
Trust Fund, a Certificateholder or another Person. Each Person holding or
acquiring any Ownership Interest in a Residual Certificate hereby consents to
any amendment of this Agreement which, based on an Opinion of Counsel furnished
to the Trustee, is reasonably necessary (a) to ensure that the record ownership
of, or any beneficial interest in, a Residual Certificate is not transferred,
directly or indirectly, to a Person that is not a Permitted Transferee and (b)
to provide for a means to compel the Transfer of a Residual Certificate which is
held by a Person that is not a Permitted Transferee to a Holder that is a
Permitted Transferee.

            (d) The preparation and delivery of all certificates and opinions
referred to above in this Section 5.02 in connection with transfer shall be at
the expense of the parties to such transfers.

            (e) Except as provided below, the Book-Entry Certificates shall at
all times remain registered in the name of the Depository or its nominee and at
all times: (i) registration of the Certificates may not be transferred by the
Trustee except to another Depository; (ii) the Depository shall maintain
book-entry records with respect to the Certificate Owners and with respect to
ownership and transfers of such Book-Entry Certificates; (iii) ownership and
transfers of registration of the Book-Entry Certificates on the books of the
Depository shall be governed by applicable rules established by the Depository;
(iv) the Depository may collect its usual and customary fees, charges and
expenses from its Depository Participants; (v) the Trustee shall deal with the
Depository, Depository Participants and indirect participating firms as
representatives of the Certificate Owners of the Book-Entry Certificates for
purposes of exercising the rights of holders under this Agreement, and requests
and directions for and votes of such representatives shall not be deemed to be
inconsistent if they are made with respect to different Certificate Owners; and
(vi) the Trustee may rely and shall be fully protected in relying upon
information furnished by the Depository with respect to its Depository
Participants and furnished by the Depository Participants with respect to
indirect participating firms and persons shown on the books of such indirect
participating firms as direct or indirect Certificate Owners.

            All transfers by Certificate Owners of 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 only transfer Book-Entry

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Certificates of Certificate Owners it represents or of brokerage firms for which
it acts as agent in accordance with the Depository's normal procedures.

            If (x) (i) the Depository or the Depositor advises the Trustee in
writing that the Depository is no longer willing or able to properly discharge
its responsibilities as Depository, and (ii) the Trustee or the Depositor is
unable to locate a qualified successor, (y) the Depositor, with the consent of
the Depository Participants, advises the Trustee in writing that it elects to
terminate the book-entry system through the Depository or (z) after the
occurrence of an Event of Default, Certificate Owners representing at least 51%
of the Certificate Balance of the Book-Entry Certificates together advise the
Trustee and the Depository through the Depository Participants in writing that
the continuation of a book-entry system through the Depository is no longer in
the best interests of the Certificate Owners, the Trustee shall notify all
Certificate Owners, through the Depository, of the occurrence of any such event
and of the availability of definitive, fully-registered Certificates (the
"Definitive Certificates") to Certificate Owners requesting the same. Upon
surrender to the Trustee of the related Class of Certificates by the Depository,
accompanied by the instructions from the Depository for registration, the
Trustee shall issue the Definitive Certificates.

            In addition, if an Event of Default has occurred and is continuing,
each Certificate Owner materially adversely affected thereby may at its option
request a Definitive Certificate evidencing such Certificate Owner's Percentage
Interest in the related Class of Certificates. In order to make such request,
such Certificate Owner shall, subject to the rules and procedures of the
Depository, provide the Depository or the related Depository Participant with
directions for the Trustee to exchange or cause the exchange of the Certificate
Owner's interest in such Class of Certificates for an equivalent Percentage
Interest in fully registered definitive form. Upon receipt by the Trustee of
instruction from the Depository directing the Trustee to effect such exchange
(such instructions to contain information regarding the Class of Certificates
and the Certificate Balance being exchanged, the Depository Participant account
to be debited with the decrease, the registered holder of and delivery
instructions for the Definitive Certificates and any other information
reasonably required by the Trustee), (i) the Trustee shall instruct the
Depository to reduce the related Depository Participant's account by the
aggregate Certificate Balance of the Definitive Certificates, (ii) the Trustee
shall execute, authenticate and deliver, in accordance with the registration and
delivery instructions provided by the Depository, a Definitive Certificate
evidencing such Certificate Owner's Percentage Interest in such Class of
Certificates and (iii) the Trustee shall execute and authenticate a new
Book-Entry Certificate reflecting the reduction in the aggregate Class Principal
Balance of such Class of Certificates by the amount of the Definitive
Certificates.

            None of the Seller, the Servicer, the Depositor or the Trustee shall
be liable for any delay in delivery of any instruction required under this
section and each may conclusively rely on, and shall be protected in relying on,
such instructions. The Depositor shall provide the Trustee with an adequate
inventory of certificates to facilitate the issuance and transfer of Definitive
Certificates. Upon the issuance of Definitive Certificates all references herein
to obligations imposed upon or to be performed by the Depository shall be deemed
to be imposed upon and performed by the Trustee, to the extent applicable with
respect to such Definitive

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Certificates and the Trustee shall recognize the Holders of the Definitive
Certificates as Certificateholders hereunder; provided that the Trustee shall
not by virtue of its assumption of such obligations become liable to any party
for any act or failure to act of the Depository.

            SECTION 5.03 Mutilated, Destroyed, Lost or Stolen Certificates.

            If (a) any mutilated Certificate is surrendered to the Trustee, or
the Trustee receives evidence to its satisfaction of the destruction, loss or
theft of any Certificate and (b) there is delivered to the Trustee such security
or indemnity as may be required by it to hold it harmless, then, in the absence
of notice to the Trustee that such Certificate has been acquired by a bona fide
purchaser, the Trustee shall execute, countersign and deliver, in exchange for
or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like Class, tenor and Percentage Interest. In connection with the
issuance of any new Certificate under this Section 5.03, the Trustee 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 Trustee) connected therewith. Any replacement
Certificate issued pursuant to this Section 5.03 shall constitute complete and
indefeasible evidence of ownership, 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 Servicer, the Trustee and any agent of the Servicer or the
Trustee may treat the Person in whose name any Certificate is registered as the
owner of such Certificate for the purpose of receiving distributions as provided
in this Agreement and for all other purposes whatsoever, and none of the
Servicer, the Trustee or any agent of the Servicer or the Trustee shall be
affected by any notice to the contrary.

            SECTION 5.05 Access to List of Certificateholders' Names and
Addresses.

            If three or more Certificateholders (a) request such information in
writing from the Trustee, (b) state that such Certificateholders desire to
communicate with other Certificateholders with respect to their rights under
this Agreement or under the Certificates, and (c) provide a copy of the
communication which such Certificateholders propose to transmit, or if the
Depositor or the Servicer shall request such information in writing from the
Trustee, then the Trustee shall, within ten Business Days after the receipt of
such request, provide the Depositor, the Servicer or such Certificateholders at
such recipients' expense the most recent list of the Certificateholders of such
Trust Fund held by the Trustee, if any. The Depositor and every
Certificateholder, by receiving and holding a Certificate, agree that the
Trustee shall not be held accountable by reason of the disclosure of any such
information as to the list of the Certificateholders hereunder, regardless of
the source from which such information was derived.

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            SECTION 5.06 Maintenance of Office or Agency.

            The Trustee will maintain or cause to be maintained at its expense
an office or offices or agency or agencies in New York, New York where
Certificates may be surrendered for registration of transfer or exchange. The
Trustee initially designates its Corporate Trust Office for such purposes. The
Trustee will give prompt written notice to the Certificateholders of any change
in such location of any such office or agency.

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                                   ARTICLE VI

                   THE DEPOSITOR, THE SELLER AND THE SERVICER

            SECTION 6.01 Respective Liabilities of the Depositor, the Sellers
                         and the Servicer.

            The Depositor, the Seller and the Servicer shall each be liable in
accordance herewith only to the extent of the obligations specifically and
respectively imposed upon and undertaken by them herein.

            SECTION 6.02 Merger or Consolidation of the Depositor, the Seller or
                         the Servicer.

            The Depositor, the Seller and the Servicer will each keep in full
effect its existence, rights and franchises as a corporation under the laws of
the United States or under the laws of one of the states thereof or as a
federally chartered savings bank organized under the laws of the United States
and will each 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 respective duties under this Agreement.
Notwithstanding the foregoing, the Seller or the Servicer may be merged or
consolidated into another Person in accordance with the following paragraph.

            Any Person into which the Depositor, the Seller or the Servicer may
be merged or consolidated, or any Person resulting from any merger or
consolidation to which the Depositor, the Seller or the Servicer shall be a
party, or any person succeeding to the business of the Depositor, the Seller or
the Servicer, shall be the successor of the Depositor, the Seller or the
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 with respect to a merger or consolidation of the Servicer shall
be an institution which is a Fannie Mae or Freddie Mac approved company in good
standing. In addition to the foregoing, there must be delivered to the Trustee a
letter from each of the Rating Agencies, to the effect that such merger,
conversion or consolidation of the Servicer will not result in a
disqualification, withdrawal or downgrade of the then current rating of any of
the Certificates.

            SECTION 6.03 Limitation on Liability of the Depositor, the Seller,
                         the Servicer and Others.

            None of the Depositor, the Seller, the Servicer nor any of the
directors, officers, employees or agents of the Depositor, the Seller or the
Servicer shall be under any liability to 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

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provision shall not protect the Depositor, the Seller, the Servicer or any such
Person against any breach of representations or warranties made by it herein or
protect the Depositor, the Seller, the Servicer or any such Person from any
liability which would otherwise be imposed by reasons of willful misfeasance,
bad faith or negligence in the performance of duties or by reason of reckless
disregard of obligations and duties hereunder. The Depositor, the Seller, the
Servicer and any director, officer, employee or agent of the Depositor, the
Seller or 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 Depositor, the Seller, the Trustee, the Servicer and any
director, officer, employee or agent of the Depositor, the Seller, the Trustee,
or the Servicer shall be indemnified by the Trust Fund out of the Collection
Account and held harmless against any loss, liability or expense incurred in
connection with any legal action relating to this Agreement or the Certificates,
other than any loss, liability or expense incurred by reason of willful
misfeasance, bad faith or negligence in the performance of its duties hereunder
or by reason of reckless disregard of obligations and duties hereunder. None of
the Depositor, the Seller or the Servicer shall be under any obligation to
appear in, prosecute or defend any legal action that is not incidental to its
respective duties hereunder and which in its opinion may involve it in any
expense or liability; provided, however, that any of the Depositor, the Seller
or the Servicer may in its discretion undertake any such action that it may deem
necessary or desirable in respect of this Agreement and the rights and duties of
the parties hereto and interests of the Trustee and the Certificateholders
hereunder. In such event, the legal expenses and costs of such action and any
liability resulting therefrom shall be expenses, costs and liabilities of the
Trust Fund, and the Depositor, the Seller and the Servicer shall be entitled to
be reimbursed therefor out of the Collection Account. The Servicer's right to
indemnity or reimbursement pursuant to this Section 6.03 shall survive the
resignation or termination of the Servicer as set forth herein.

            SECTION 6.04 Limitation on Resignation of the Servicer.

            (a) Subject to Section 6.04(b) below, the Servicer shall not resign
from the obligations and duties hereby imposed on it except (a)(i) upon
appointment, pursuant to the provisions of Section 7.02, of a successor servicer
which (x) has a net worth of not less than $10,000,000 and (y) is a Fannie Mae
or Freddie Mac approved company in good standing and (ii) receipt by the Trustee
of a letter from each Rating Agency that such a resignation and appointment will
not result in a qualification, withdrawal or downgrading of the then current
rating of any of the Certificates, or (b) upon determination that its duties
hereunder are no longer permissible under applicable law. Any such determination
under clause (b) permitting the resignation of the Servicer shall be evidenced
by an Opinion of Counsel to such effect delivered to the Trustee. No such
resignation shall become effective until the Trustee or a successor servicer
shall have assumed the Servicer's responsibilities, duties, liabilities and
obligations hereunder and the requirements of Section 7.02 have been satisfied.

            (b) Notwithstanding the foregoing, at the Seller's request, so long
as it is the owner of the servicing rights, Wilshire shall resign upon the
Seller's selection and appointment of a successor servicer; provided that the
Seller delivers to the Trustee the letter required by Section 6.04(a)(ii) above.

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                                  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 Servicer to make any deposit or payment
      required pursuant to this Agreement which continues unremedied for a
      period of one Business Day (or, in the case of any such failure to make
      any deposit or payment due to any outbreak or escalation of hostilities,
      declaration by the United States of a national emergency or war or other
      calamity or crisis or act of god, for a period of three Business Days)
      after the date upon which written notice of such failure, requiring the
      same to be remedied, shall have been given to the Servicer by the Trustee
      or the Depositor, or to the Servicer and the Trustee by the Holders of
      Certificates having not less than 25% of the Voting Rights evidenced by
      the Certificates; 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, which failure or breach (a)
      materially affects the rights of the Certificateholders and (b) continues
      unremedied for a period of 30 days after the date on which written notice
      of such failure or breach, requiring the same to be remedied, shall have
      been given to the Servicer by the Trustee or the Depositor, or to the
      Servicer and the Trustee by the Holders of Certificates having not less
      than 25% of the Voting Rights evidenced by the Certificates; or

            (iii) if a representation or warranty set forth in Section 2.03(b)
      hereof shall prove to be materially incorrect as of the time made in any
      respect that materially and adversely affects interests of the
      Certificateholders, and the circumstances or condition in respect of which
      such representation or warranty was incorrect shall not have been
      eliminated or cured, within 30 days (or, if such breach is not capable of
      being cured within 30 days and provided that the Servicer believes in good
      faith that such breach can be cured and is diligently pursuing the cure
      thereof, within 90 days) after the date on which written notice thereof
      shall have been given to the Servicer by the Trustee for the benefit of
      the Certificateholders or by the Depositor; or

            (iv) failure by the Servicer to maintain, if required, its license
      to do business in any jurisdiction where the related Mortgaged Property is
      located, to the extent such failure materially and adversely affects the
      ability of the Servicer to perform its obligations under this Agreement;
      or

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            (v) 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 consecutive days; or

            (vi) 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

            (vii) any failure of the Servicer to make any Advance, to the extent
      required under Section 4.01 in the manner and at the time required to be
      made from its own funds pursuant to this Agreement and after receipt of
      notice from the Trustee, which failure continues unremedied after the
      close of business on the Business Day immediately preceding the related
      Distribution Date; or

            (viii) the Servicer shall admit in writing its inability to pay its
      debts generally as they become due, file a petition to take advantage of
      or commence a voluntary case under, 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

            (ix) (a) either (I) the servicer rankings or ratings of the Servicer
      are downgraded two or more levels below the level in effect on the Closing
      Date by one or more of the Rating Agencies rating the Certificates or (II)
      the servicer rankings or ratings for the Servicer are downgraded to "below
      average" status by one or more of the Rating Agencies rating the
      Certificates or (b) one or more Classes of the Certificates are downgraded
      or placed on negative watch due in whole or in part to the performance or
      servicing of the Servicer.

            Other than an Event of Default resulting from a failure of the
Servicer to make any Advance, if an Event of Default described in clauses (i)
through (viii) 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
may, or at the direction of the Holders of Certificates evidencing not less than
51% of the Voting Rights evidenced by the Certificates, the Trustee shall by
notice in writing to the Servicer (with a copy to each Rating Agency), terminate
all of the rights and obligations of the Servicer under this Agreement and in
and to the related Mortgage Loans and the proceeds thereof, other than its
rights as a Certificateholder hereunder (and the rights to reimburse itself for
Advances and Servicing Advances previously made pursuant to this Agreement, the
right to accrued and unpaid Servicing Fees and the rights under Section 6.03
with respect to events occurring prior to such termination). If an Event of
Default results from the failure of the Servicer to make an Advance, the Trustee
shall prior to the Distribution Date occurring in the succeeding calendar month,
by notice in writing to the Servicer and the

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Depositor (with a copy to each Rating Agency), terminate all of the rights and
obligations of the Servicer under this Agreement prior to the Distribution Date
occurring in the succeeding calendar month and in and to the related Mortgage
Loans and the proceeds thereof, other than its rights as a Certificateholder
hereunder and the rights to reimburse itself for Advances and Servicing Advances
previously made pursuant to this Agreement, the right to accrued and unpaid
Servicing Fees and the rights under Section 6.03 with respect to events
occurring prior to such termination. If an Event of Default described in clause
(ix) of this Section occurs, the Trustee shall, at the direction of the Seller,
by notice in writing to the Servicer, terminate all of the rights and
obligations of the Servicer under this Agreement (other than its right to
reimburse itself for Advances and Servicing Advances previously made, as
provided in Section 3.08, the right to accrued and unpaid Servicing Fees and the
rights under Section 6.03 with respect to events occurring prior to such
termination) and shall appoint as successor Servicer the entity selected by the
Seller in accordance with Section 7.02; provided the Seller shall first furnish
to the Trustee a letter from each Rating Agency that the appointment of such
successor will not result in a downgrading of the rating of any of the
Certificates.

            Upon receipt by the Servicer of such written notice of termination,
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
Trustee or its nominee. Upon written request from the Trustee, the Servicer
shall prepare, execute and deliver to the successor entity designated by the
Trustee any and all documents and other instruments, place in such successor's
possession all related Mortgage Files, and do or cause to be done all other acts
or things necessary or appropriate to effect the purposes of such notice of
termination, including but not limited to the transfer and endorsement or
assignment of the Mortgage Loans and related documents, at the Servicer's sole
expense. The Servicer shall cooperate with the Trustee 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 Advances and
Servicing Advances and unpaid Servicing Fees which shall at the time be credited
by the Servicer to the Collection Account or Escrow Account or thereafter
received with respect to the Mortgage Loans. The Trustee, as successor Servicer,
shall thereupon make any Advance. The Trustee is hereby authorized and empowered
to execute and deliver, on behalf of the 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.

            SECTION 7.02 Trustee to Act; Appointment of Successor.

            On and after the time the Servicer receives a notice of termination
pursuant to Section 7.01 of this Agreement or the resignation of the Servicer
pursuant to Section 6.04, the Trustee shall, subject to and to the extent
provided herein, be the successor to the Servicer, but only in its capacity as
servicer under this Agreement, and not in any other, and the transactions set
forth herein and shall be subject to all the responsibilities, duties and
liabilities relating thereto placed on the Servicer by the terms and provisions
hereof and applicable law including the obligation to make Advances pursuant to
Section 4.01. As compensation therefor, the Trustee

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shall be entitled to all funds relating to the Mortgage Loans that the Servicer
would have been entitled to charge to the Collection Account, provided that the
terminated Servicer shall nonetheless be entitled to payment or reimbursement as
provided in Section 3.08 to the extent that such payment or reimbursement
relates to the period prior to termination of the Servicer. Notwithstanding the
foregoing, if the Trustee has become the successor to the Servicer in accordance
with Section 7.01, the Trustee may, if it shall be unwilling to so act, or
shall, if it is prohibited by applicable law from making Advances pursuant to
4.01 hereof, or if it is otherwise unable to so act, appoint, or petition a
court of competent jurisdiction to appoint, any established mortgage loan
servicing institution the appointment of which does not adversely affect the
then current rating of the Certificates by each Rating Agency, as the successor
to the Servicer hereunder in the assumption of all or any part of the
responsibilities, duties or liabilities of the Servicer hereunder. Any successor
to the Servicer shall be an institution which is a Fannie Mae or Freddie Mac
approved seller/servicer for first and second loans in good standing, which has
a net worth of at least $10,000,000, which is willing to service the related
Mortgage Loans and which executes and delivers to the Depositor and the Trustee
an agreement accepting such delegation and assignment, containing an assumption
by such Person of the rights, powers, duties, responsibilities, obligations and
liabilities of the Servicer (other than liabilities of the Servicer under
Section 6.03 hereof incurred prior to termination of the Servicer under Section
7.01 hereunder), with like effect as if originally named as a party to this
Agreement; provided that each Rating Agency acknowledges that its rating of the
Certificates in effect immediately prior to such assignment and delegation will
not be qualified, withdrawn or downgraded as a result of such assignment and
delegation. Pending appointment of a successor to the Servicer hereunder, the
Trustee, unless the Trustee is prohibited by law from so acting, shall, subject
to the limitations described herein, act in such capacity as hereinabove
provided. In connection with such appointment and assumption, the Trustee may
make such arrangements for the compensation of such successor out of payments on
the related Mortgage Loans as it and such successor shall agree; provided,
however, that no such compensation shall be in excess of the Servicing Fee. The
Trustee and such successor shall take such action, consistent with this
Agreement, as shall be necessary to effectuate any such succession. Neither the
Trustee nor any other successor servicer shall be deemed to be in default by
reason of any failure to make, or any delay in making, any distribution
hereunder or any portion thereof or any failure to perform, or any delay in
performing, any duties or responsibilities hereunder, in either case caused by
the failure of the Servicer to deliver or provide, or any delay in delivering or
providing, any cash, information, documents or records to it.

            In connection with the termination or resignation of the Servicer
hereunder, either (i) the successor servicer, including the Trustee if the
Trustee is acting as successor 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 Servicer shall cooperate with the successor Servicer in causing MERS
to revise its records to reflect the transfer of servicing to the successor
Servicer as necessary under MERS' rules and regulations, or (ii) the predecessor
Servicer shall cooperate with the successor 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,

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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 Servicer. The predecessor Servicer shall file or cause
to be filed any such assignment in the appropriate recording office. The
predecessor 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 subsection.

            Any successor to the Servicer shall give notice to the Mortgagors of
such change of servicer and shall, during the term of its service as servicer,
maintain in force the policy or policies that the Servicer is required to
maintain pursuant to this Agreement.

            SECTION 7.03 Notification to Certificateholders.

            (a) Upon any termination of or appointment of a successor to the
Servicer, the Trustee shall give prompt written notice thereof to
Certificateholders and to each Rating Agency.

            (b) Within 60 days after the occurrence of any Event of Default, the
Trustee shall transmit by mail to all Certificateholders notice of each such
Event of Default hereunder actually known to the Trustee, unless such Event of
Default shall have been cured or waived.

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                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

            SECTION 8.01 Duties of the Trustee.

            The Trustee, prior to the occurrence of an Event of Default and
after the curing of all Events of Default that may have occurred, shall
undertake to perform such duties and only such duties as are specifically set
forth in this Agreement. In case an Event of Default has occurred and remains
uncured, 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 person would exercise or use under the circumstances in the conduct
of such person's own affairs.

            The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee that are specifically required to be furnished pursuant to any
provision of this Agreement shall examine them to determine whether they are in
the form required by this Agreement; provided, however, that the Trustee shall
not be responsible for the accuracy or content of any such resolution,
certificate, statement, opinion, report, document, order or other instrument.

            No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act or its own willful misconduct; provided, however, that:

            (i) unless an Event of Default actually known to the Trustee shall
      have occurred and be continuing, the duties and obligations of the Trustee
      shall be determined solely by the express provisions of this Agreement,
      the Trustee shall not 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 and the Trustee 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 and conforming to the
      requirements of this Agreement which it believed in good faith to be
      genuine and to have been duly executed by the proper authorities
      respecting any matters arising hereunder;

            (ii) the Trustee shall not be liable for an error of judgment made
      in good faith by a Responsible Officer or Responsible Officers of the
      Trustee, unless it shall be finally proven that the Trustee was negligent
      in ascertaining the pertinent facts; and

            (iii) the Trustee shall not 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 Holders of Certificates evidencing not less than 25%
      of the Voting Rights of Certificates relating to the time, method and
      place of conducting any proceeding for any remedy available to the

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      Trustee, or exercising any trust or power conferred upon the Trustee under
      this Agreement.

            SECTION 8.02 Certain Matters Affecting the Trustee.

            Except as otherwise provided in Section 8.01:

            (i) the Trustee may request and conclusively rely upon and shall be
      protected in acting or refraining from acting 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 believed by it to be genuine
      and to have been signed or presented by the proper party or parties and
      the Trustee shall have no responsibility to ascertain or confirm the
      genuineness of any signature of any such party or parties;

            (ii) the Trustee may consult with counsel, financial advisers or
      accountants and the advice of any such counsel, financial advisers or
      accountants and any 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 with such advice
      or Opinion of Counsel;

            (iii) the Trustee shall not 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;

            (iv) the Trustee shall not 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 so to do by
      Holders of Certificates evidencing not less than 25% of the Voting Rights
      allocated to each Class of Certificates;

            (v) the Trustee may execute any of the trusts or powers hereunder or
      perform any duties hereunder either directly or by or through agents,
      affiliates, accountants or attorneys;

            (vi) the Trustee shall not be required to risk or expend its own
      funds or otherwise incur any financial liability in the performance of any
      of its duties or in the exercise of any of its rights or powers hereunder
      if it shall have reasonable grounds for believing that repayment of such
      funds or adequate indemnity against such risk or liability is not assured
      to it;

            (vii) the Trustee shall not be liable for any loss on any investment
      of funds pursuant to this Agreement (other than as issuer of the
      investment security);

            (viii) the Trustee shall not be deemed to have knowledge of an Event
      of Default until a Responsible Officer of the Trustee shall have received
      written notice thereof; and

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            (ix) the Trustee shall be under no obligation to exercise any of the
      trusts, rights or powers vested in it by 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 reasonable security or indemnity satisfactory
      to the Trustee against the costs, expenses and liabilities which may be
      incurred therein or thereby.

            SECTION 8.03 Trustee Not Liable for Certificates or Mortgage Loans.

            The recitals contained herein and in the Certificates shall be taken
as the statements of the Depositor or the Seller, as the case may be, and the
Trustee assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Agreement or of the
Certificates or of any Mortgage Loan or related document, or of MERS or the
MERS(R) System, other than with respect to the Trustee's execution and
countersignature of the Certificates. The Trustee shall not be accountable for
the use or application by the Depositor or the Servicer of any funds paid to the
Depositor or the Servicer in respect of the Mortgage Loans or deposited in or
withdrawn from the Collection Account by the Depositor or the Servicer.

            SECTION 8.04 Trustee May Own Certificates.

            The Trustee in its individual or any other capacity may become the
owner or pledgee of Certificates and may transact business with the Depositor,
the Seller, the Servicer and their affiliates, with the same rights as it would
have if it were not the Trustee.

            SECTION 8.05 Trustee's Fees and Expenses.

            The Trustee, as compensation for its activities hereunder, shall be
entitled to withdraw from the Certificate Account on each Distribution Date
prior to making distributions pursuant to Section 4.02 an amount equal to the
Trustee Fee for such Distribution Date. The Trustee and any director, officer,
employee or agent of the Trustee shall be indemnified by the Depositor and the
Servicer, to the extent such indemnity related to the failure of the Servicer to
perform its servicing obligations in accordance with this Agreement, and held
harmless against any loss, liability or expense (including reasonable attorney's
fees and expenses) (i) incurred in connection with any claim or legal action
relating to (a) this Agreement, (b) the Custodial Agreement, (c) the
Certificates, or (d) the performance of any of the Trustee's duties hereunder,
other than any loss, liability or expense incurred by reason of willful
misfeasance, bad faith or negligence in the performance of any of the Trustee's
duties hereunder or incurred by reason of any action of the Trustee taken at the
direction of the Certificateholders and (ii) resulting from any error in any tax
or information return prepared by the Servicer. Such indemnity shall survive the
termination of this Agreement or the resignation or removal of the Trustee
hereunder. Without limiting the foregoing, the Depositor covenants and agrees,
except as otherwise agreed upon in writing by the Depositor and the Trustee, and
except for any such expense, disbursement or advance as may arise from the
Trustee's negligence, bad faith or willful misconduct, to pay or

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reimburse the Trustee, for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any of the provisions of this
Agreement with respect to: (A) the reasonable compensation and the expenses and
disbursements of its counsel not associated with the closing of the issuance of
the Certificates, (B) the reasonable compensation, expenses and disbursements of
any accountant, engineer or appraiser that is not regularly employed by the
Trustee, to the extent that the Trustee must engage such persons to perform acts
or services hereunder and (C) printing and engraving expenses in connection with
preparing any Definitive Certificates. Except as otherwise provided herein, the
Trustee shall not be entitled to payment or reimbursement for any routine
ongoing expenses incurred by the Trustee in the ordinary course of its duties as
Trustee, Registrar or agent for the Tax Matters Person hereunder or for any
other expenses.

            SECTION 8.06 Eligibility Requirements for the Trustee and Custodian.

            The Trustee hereunder shall at all times be a corporation or
association organized and doing business under the laws of a state or the United
States of America, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $50,000,000, subject
to supervision or examination by federal or state authority and with a credit
rating which would not cause either of the Rating Agencies to reduce their
respective then current Ratings of the Certificates (or having provided such
security from time to time as is sufficient to avoid such reduction) as
evidenced in writing by each Rating Agency. If such corporation or association
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 8.06 the combined capital and surplus of such
corporation or association 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 shall cease to be eligible in accordance with the
provisions of this Section 8.06, the Trustee shall resign immediately in the
manner and with the effect specified in Section 8.07. The entity serving as
Trustee may have normal banking and trust relationships with the Depositor and
its affiliates or the Servicer and its affiliates; provided, however, that such
entity cannot be an affiliate of the Seller, the Depositor or the Servicer other
than the Trustee in its role as successor to the Servicer.

            SECTION 8.07 Resignation and Removal of the Trustee.

            The Trustee may at any time resign and be discharged from the trusts
hereby created by giving written notice of resignation to the Depositor, the
Seller, the Servicer and each Rating Agency not less than 60 days before the
date specified in such notice, when, subject to Section 8.08, such resignation
is to take effect, and acceptance by a successor trustee in accordance with
Section 8.08 meeting the qualifications set forth in Section 8.06. If no
successor trustee meeting such qualifications shall have been so appointed and
have accepted appointment within 30 days after the giving of such notice of
resignation or removal (as provided below), the resigning or removed Trustee may
petition any court of competent jurisdiction for the appointment of a successor
trustee.

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            If at any time the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.06 and shall fail to resign after written
request thereto by the Depositor, or if at any time the Trustee shall become
incapable of acting, or shall be adjudged as bankrupt or insolvent, or a
receiver of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, or a tax
is imposed with respect to the Trust Fund by any state in which the Trustee or
the Trust Fund is located and the imposition of such tax would be avoided by the
appointment of a different trustee, then the Depositor may remove the Trustee
and appoint a successor trustee by written instrument, in triplicate, one copy
of which shall be delivered to the Trustee, one copy to the Servicer and the
Seller and one copy to the successor trustee.

            The Holders of Certificates entitled to at least 51% of the Voting
Rights may at any time remove the Trustee and appoint a successor trustee by
written instrument or instruments, in triplicate, signed by such Holders or
their attorneys-in-fact duly authorized, one complete set of which shall be
delivered by the successor Trustee to the Servicer and the Seller, one complete
set to the Trustee so removed and one complete set to the successor so
appointed. Notice of any removal of the Trustee shall be given to each Rating
Agency by the successor trustee. All costs and expenses incurred by the Trustee
in connection with the removal of the Trustee without cause shall be reimbursed
to the Trustee from amounts on deposit in the Collection Account.

            Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 8.07 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 8.08.

            SECTION 8.08 Successor Trustee.

            Any successor trustee appointed as provided in Section 8.07 shall
execute, acknowledge and deliver to the Depositor and to its predecessor trustee
and the Servicer and the Seller an instrument accepting such appointment
hereunder and thereupon the resignation or removal of the predecessor trustee
shall become effective and such successor trustee, 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 Depositor, the Servicer and the predecessor trustee
shall execute and deliver such instruments and do such other things as may
reasonably be required for more fully and certainly vesting and confirming in
the successor trustee all such rights, powers, duties, and obligations.

            No successor trustee shall accept appointment as provided in this
Section 8.08 unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 8.06 and its appointment shall not
adversely affect the then current rating of the Certificates.

            Upon acceptance of appointment by a successor trustee as provided in
this Section 8.08, the Depositor shall mail notice of the succession of such
trustee hereunder to all Holders of

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Certificates. If the Depositor fails to mail such notice within 10 days after
acceptance of appointment by the successor trustee, the successor trustee shall
cause such notice to be mailed at the expense of the Depositor.

            SECTION 8.09 Merger or Consolidation of the Trustee.

            Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to the business of the Trustee, shall be the successor of
the Trustee hereunder, provided that such corporation shall be eligible under
the provisions of Section 8.06 without the execution or filing of any paper or
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 of this Agreement, 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 any Mortgage Note may at the
time be located, the 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 separate trustees, of all or any part of the
Trust Fund, and to vest in such Person or Persons, in such capacity and for the
benefit of the Certificateholders, such title to the Trust Fund or any part
thereof, whichever is applicable, and, subject to the other provisions of this
Section 8.10, such powers, duties, obligations, rights and trusts as the
Servicer and the Trustee may consider necessary or desirable. If the Servicer
shall not have joined in such appointment within 15 days after the receipt by it
of a request to do so, or in the case an Event of Default shall have occurred
and be continuing, the Trustee alone shall have the power to make such
appointment. No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor trustee under Section 8.06 and no
notice to Certificateholders of the appointment of any co-trustee or separate
trustee shall be required under Section 8.08.

            Every separate trustee and co-trustee shall, to the extent permitted
by law, be appointed and act subject to the following provisions and conditions:

            (i) To the extent necessary to effectuate the purposes of this
      Section 8.10, all rights, powers, duties and obligations conferred or
      imposed upon the Trustee shall be conferred or imposed upon and exercised
      or performed by the Trustee and such separate trustee or co-trustee
      jointly (it being understood that such separate trustee or co-trustee is
      not authorized to act separately without the Trustee joining in such act),
      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 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 applicable Trust Fund or any portion thereof in any such
      jurisdiction) shall be exercised and

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      performed singly by such separate trustee or co-trustee, but solely at the
      direction of the Trustee;

            (ii) No trustee hereunder shall be held personally liable by reason
      of any act or omission of any other trustee hereunder and such appointment
      shall not, and shall not be deemed to, constitute any such separate
      trustee or co-trustee as agent of the Trustee;

            (iii) The Trustee may at any time accept the resignation of or
      remove any separate trustee or co-trustee; and

            (iv) The Depositor, and not the Trustee, shall be liable for the
      payment of reasonable compensation, reimbursement and indemnification to
      any such separate trustee or co-trustee.

            Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the separate trustees and co-trustees, when
and 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 and a copy thereof given to the
Servicer and the Depositor.

            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.

            SECTION 8.11 Tax Matters.

            It is intended that the assets with respect to which the REMIC
elections are to be made, as set forth in the Preliminary Statement, shall
constitute, and that the conduct of matters relating to each such segregated
pool of assets shall be such as to qualify such assets as, a "real estate
mortgage investment conduit" as defined in and in accordance with the Trust Fund
Provisions. In furtherance of such intention, the Trustee covenants and agrees
that it shall act as agent (and the Trustee is hereby appointed to act as agent)
for the Tax Matters Person and on behalf of the Trust Fund and that in such
capacity it shall: (a) prepare and file, or cause to be prepared and filed, in a
timely manner, a U.S. Real Estate Mortgage Investment Conduit Income Tax Return
(Form 1066 or any successor form adopted by the Internal Revenue Service) and
prepare and file or cause to be prepared and filed with the Internal Revenue
Service and applicable state or local tax authorities income tax or information
returns for each taxable year

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with respect to each of REMIC 1, REMIC 2 and REMIC 3 containing such information
and at the times and in the manner as may be required by the Code or state or
local tax laws, regulations, or rules, and furnish or cause to be furnished to
Certificateholders the schedules, statements or information at such times and in
such manner as may be required thereby; (b) within thirty days of the Closing
Date, furnish or cause to be furnished to the Internal Revenue Service, on Forms
8811 or as otherwise may be required by the Code, the name, title, address, and
telephone number of the person that the holders of the Certificates may contact
for tax information relating thereto, together with such additional information
as may be required by such form, and update such information at the time or
times in the manner required by the Code; (c) make or cause to be made elections
that the assets of each of REMIC 1, REMIC 2 and REMIC 3 be treated as a REMIC on
the federal tax return for its first taxable year (and, if necessary, under
applicable state law); (d) prepare and forward, or cause to be prepared and
forwarded, to the Certificateholders and to the Internal Revenue Service and, if
necessary, state tax authorities, all information returns and reports as and
when required to be provided to them in accordance with the REMIC Provisions,
including without limitation, the calculation of any original issue discount
using the Prepayment Assumption; (e) provide information necessary for the
computation of tax imposed on the transfer of a Residual Certificate to a Person
that is not a Permitted Transferee, or an agent (including a broker, nominee or
other middleman) of a Non-Permitted Transferee, or a pass-through entity in
which a Non-Permitted Transferee is the record holder of an interest (the
reasonable cost of computing and furnishing such information may be charged to
the Person liable for such tax); (f) to the extent that they are under its
control, conduct matters relating to such assets at all times that any
Certificates are outstanding so as to maintain the status of REMIC 1, REMIC 2
and REMIC 3 as a REMIC under the REMIC Provisions; (g) not knowingly or
intentionally take any action or omit to take any action that would cause the
termination of the REMIC status of REMIC 1, REMIC 2 or REMIC 3; (h) pay, from
the sources specified in the fourth paragraph of this Section 8.11, the amount
of any federal or state tax, including prohibited transaction taxes as described
below, imposed on the Trust Fund prior to its termination when and as the same
shall be due and payable (but such obligation shall not prevent the Trustee or
any other appropriate Person from contesting any such tax in appropriate
proceedings and shall not prevent the Trustee from withholding payment of such
tax, if permitted by law, pending the outcome of such proceedings); (i) ensure
that federal, state or local income tax or information returns shall be signed
by the Trustee or such other person as may be required to sign such returns by
the Code or state or local laws, regulations or rules; (j) maintain records
relating to the Trust Fund, including but not limited to the income, expenses,
assets and liabilities thereof and the fair market value and adjusted basis of
the assets determined at such intervals as may be required by the Code, as may
be necessary to prepare the foregoing returns, schedules, statements or
information; and (k) as and when necessary and appropriate, represent the Trust
Fund in any administrative or judicial proceedings relating to an examination or
audit by any governmental taxing authority, request an administrative adjustment
as to any taxable year of the Trust Fund, enter into settlement agreements with
any governmental taxing agency, extend any statute of limitations relating to
any tax item of the Trust Fund, and otherwise act on behalf of the Trust Fund in
relation to any tax matter or controversy involving it.

            To the extent that they are under its control, the Servicer shall
conduct matters relating to the assets of each REMIC at all times that any
Certificates are outstanding so as to

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maintain the status of REMIC 1, REMIC 2 and REMIC 3 as a REMIC under the REMIC
Provisions. The Servicer shall not knowingly or intentionally take any action
that would cause the termination of the REMIC status of REMIC 1, REMIC 2 or
REMIC 3.

            In order to enable the Trustee to perform its duties as set forth
herein, the Depositor shall provide, or cause to be provided, to the Trustee
within ten (10) days after the Closing Date all information or data that the
Trustee requests in writing and determines to be relevant for tax purposes to
the valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flows of
the Certificates and the Mortgage Loans. Thereafter, the Depositor shall provide
to the Trustee promptly upon written request therefor any such additional
information or data that the Trustee may, from time to time, reasonably request
in order to enable the Trustee to perform its duties as set forth herein. The
Depositor hereby indemnifies the Trustee for any losses, liabilities, damages,
claims or expenses of the Trustee arising from any errors or miscalculations of
the Trustee that result from any failure of the Depositor to provide, or to
cause to be provided, accurate information or data to the Trustee on a timely
basis.

            In the event that any tax is imposed on "prohibited transactions" of
the Trust Fund as defined in Section 860F(a)(2) of the Code, on the "net income
from foreclosure property" of the Trust Fund as defined in Section 860G(c) of
the Code, on any contribution to the Trust Fund after the Startup Day pursuant
to Section 860G(d) of the Code, or any other tax is imposed, if not paid as
otherwise provided for herein, such tax shall be paid by (i) the Trustee, if any
such other tax arises out of or results from a breach by the Trustee of any of
its obligations under this Agreement, (ii) the Servicer or the Seller, in the
case of any such minimum tax, if such tax arises out of or results from a breach
by the Servicer or the Seller of any of their obligations under this Agreement
or (iii) the Seller, if any such tax arises out of or results from the Seller's
obligation to repurchase a related Mortgage Loan pursuant to Section 2.02 or
2.03 or (iv) in all other cases, or in the event that the Trustee, the Servicer
or Seller fails to honor its obligations under the preceding clauses (i), (ii)
or (iii), any such tax will be paid with amounts otherwise to be distributed to
the Certificateholders, as provided in Section 4.02.

            Neither the Servicer nor the Trustee shall enter into any
arrangement by which any of REMIC 1, REMIC 2 or REMIC 3 will receive a fee or
other compensation for services nor permit any of REMIC 1, REMIC 2 or REMIC 3 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 8.12 Commission Reporting.

            (a) The Trustee and the Servicer shall reasonably cooperate with the
Depositor in connection with the Trust's satisfying the reporting requirements
under the Exchange Act. The Trustee shall prepare on behalf of the Depositor any
Forms 8-K and 10-K customary for similar securities as required by the Exchange
Act and the rules and regulations of the Commission thereunder, and the
Depositor shall sign and the Trustee shall file (via EDGAR) such Forms on behalf
of the Depositor. The Depositor hereby grants to the Trustee a limited

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power of attorney to execute and file each such document on behalf of the
Depositor. Such power of attorney shall continue until the earlier of (i)
receipt by the Trustee from the Depositor of written termination of such power
of attorney and (ii) the termination of the Trust.

            (b) Each Form 8-K shall be filed by the Trustee within 15 days after
each Distribution Date, with a copy of the statement to the Certificateholders
for such Distribution Date as an exhibit thereto. Prior to March 31st of the
calendar year following the calendar year during which the Closing Date occurs
(or such earlier date as may be required by the Exchange Act and the rules and
regulations of the Commission), the Trustee shall file a Form 10-K, in substance
as required by applicable law or applicable Commission staff's interpretations.
Such Form 10-K shall include as exhibits, the Servicer's annual statement of
compliance described under Section 3.16 and the accountant's report described
under Section 3.17, in each case to the extent they have been timely delivered
to the Trustee. If they are not so timely delivered, the Trustee shall file an
amended Form 10-K including such documents as exhibits promptly after they are
delivered to the Trustee. The Trustee shall have no liability with respect to
any failure to properly or timely prepare or file such periodic reports
resulting from or relating to the Trustee's inability or failure to obtain any
information not resulting from its own negligence or willful misconduct. The
Form 10-K shall also include a certification in the form attached hereto as
Exhibit W (the "Depositor Certification"), which shall be signed by the senior
officer of the Depositor in charge of securitization. The Trustee shall have no
responsibility to file any items other than those specified in this Section
8.12.

            (c) Not later than 15 calendar days before the date on which the
Depositor's annual report on Form 10-K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission (or, if
such day is not a Business Day, the immediately preceding Business Day), the
Trustee shall sign a certification in the form attached hereto as Exhibit X (the
"Trustee Certification") for the benefit of the Depositor and its officers,
directors and affiliates regarding certain aspects of items 1 through 3 of the
Depositor Certification. In addition, the Trustee shall, subject to the
provisions of Section 8.01 and 8.02 hereof, indemnify and hold harmless the
Depositor and each Person, if any, who "controls" the Depositor within the
meaning of the Securities Act and its officers, directors and affiliates from
and against any losses, damages, penalties, fines, forfeitures, reasonable and
necessary legal fees and related costs, judgments and other costs and expenses
arising out of or based upon a breach of the Trustee's obligations under this
Section 8.12 or any inaccuracy made in the Trustee Certification. If the
indemnification provided for in this Section 8.12(c) is unavailable or
insufficient to hold harmless such Persons, then the Trustee shall contribute to
the amount paid or payable by such Persons as a result of the losses, claims,
damages or liabilities of such Persons in such proportion as is appropriate to
reflect the relative fault of the Depositor on the one hand and the Trustee on
the other. The Trustee acknowledges that the Depositor is relying on the
Trustee's performance of its obligations under this Section 8.12 in order to
perform its obligations under Section 8.12(b) above.

            (d) Not later than 15 calendar days before the date on which the
Depositor's annual report on Form 10-K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission (or, if
such day is not a Business Day, the immediately

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preceding Business Day), the Servicer will deliver to the Depositor and the
Trustee an Officer's Certificate for the prior calendar year in substantially
the form of Exhibit Y to this Agreement. The Servicer agrees to indemnify and
hold harmless the Depositor, the Trustee and each Person, if any, who "controls"
the Depositor or the Trustee within the meaning of the Securities Act and their
respective officers, directors and affiliates from and against any losses,
damages, penalties, fines, forfeitures, reasonable and necessary legal fees and
related costs, judgments and other costs, fees and expenses that such Person may
sustain arising out of third party claims based on (i) the failure of the
Servicer to deliver or caused to be delivered when required any Officer's
Certificate pursuant to this Section 8.12(d), or (ii) any material misstatement
or omission contained in any Officer's Certificate provided pursuant to this
Section 8.12(d). If an event occurs that would otherwise result in an
indemnification obligation under clauses (i) or (ii) above, but the
indemnification provided for in this Section 8.12(d) by the Servicer is
unavailable or insufficient to hold harmless such Persons, then the Servicer
shall contribute to the amount paid or payable by such Persons as a result of
the losses, claims, damages or liabilities of such Persons in such proportion as
is appropriate to reflect the relative fault of the Depositor or Trustee on the
one hand and the Servicer on the other. The Servicer acknowledges that the
Depositor and the Trustee are relying on the Servicer's performance of its
obligations under this Agreement in order to perform their respective
obligations under this Section 8.12.

            (e) Upon any filing with the Commission, the Trustee shall promptly
deliver to the Depositor a copy of any executed report, statement or
information.

            (f) If the Commission issues additional interpretative guidance or
promulgates additional rules or regulations, or if other changes in applicable
law occur, that would require the reporting arrangements, or the allocation of
responsibilities with respect thereto, described in this Section 8.12, to be
conducted differently than as described, the Depositor, Servicer and Trustee
will reasonably cooperate to amend the provisions of this Section 8.12 in order
to comply with such amended reporting requirements and such amendment of this
Section 8.12. Any such amendment shall be made in accordance with Section 10.01
without the consent of the Certificateholders, and may result in a change in the
reports filed by the Trustee on behalf of the Trust under the Exchange Act.
Notwithstanding the foregoing, the Depositor, Servicer and Trustee shall not be
obligated to enter into any amendment pursuant to this Section 8.12 that
adversely affects its obligations and immunities under this Agreement.

            (g) Prior to January 31 of the first year in which the Trustee is
able to do so under applicable law, the Trustee shall file a Form 15D Suspension
Notification with respect to the Trust.

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                                   ARTICLE IX

                                   TERMINATION

            SECTION 9.01 Termination upon Liquidation or Purchase of the
                         Mortgage Loans.

            Subject to Section 9.03, the rights, obligations and
responsibilities of the Depositor, the Seller, the Servicer and the Trustee
created hereunder with respect to the Trust Fund shall terminate upon the
earliest of:

            (a) the purchase by the Optional Termination Holder of all Mortgage
Loans (and REO Properties) remaining at the price equal to the greater of (I)
the sum of (A) 100% of the Aggregate Collateral Balance (other than in respect
of REO Property) plus one month's accrued interest thereon at the applicable
Mortgage Rate, (B) with respect to any REO Property, the lesser of (x) the
appraised value of any REO Property as determined by the higher of two
independent valuations completed by two independent companies selected by the
Depositor at the expense of the Depositor and (y) the Stated Principal Balance
of each Mortgage Loan related to any REO Property, in each case plus accrued and
unpaid interest thereon at the applicable Mortgage Rate and (C) any remaining
unreimbursed Advances, Servicing Advances and Servicing Fees payable to the
Servicer and any unreimbursed Advances (made by the Trustee as successor
Servicer), Trustee Fees and expenses payable to the Trustee (the sum of (A), (B)
and (C), collectively, the "Par Value") and (II) the Fair Market Value;

            (b) the later of (i) the maturity or other liquidation (or any
Advance with respect thereto) of the last Mortgage Loan remaining in the Trust
Fund and the disposition of all REO Property and (ii) the distribution to
Certificateholders of all amounts required to be distributed to them pursuant to
this Agreement; and

            (c) the purchase by the Auction Purchaser of all the Mortgage Loans
and all property acquired in respect of any remaining Mortgage Loan (the "Trust
Collateral"), in each case as described below.

            In no event shall the trusts created hereby continue beyond the
expiration of 21 years from the death of the survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof. The right to repurchase all Mortgage Loans
and REO Properties pursuant to clause (a) above shall be conditioned upon the
aggregate Stated Principal Balance of the Mortgage Loans and the appraised value
of the REO Properties at the time of any such repurchase, aggregating less than
ten percent of the Aggregate Collateral Balance as of the Cut-off Date.

            If the Optional Termination Holder has not exercised its purchase
option described above, on any Distribution Date on or after the date on which
the aggregate Stated

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Principal Balance of the Mortgage Loans and the appraised value of the REO
Properties at the time of the purchase is less than five percent of the
Aggregate Collateral Balance as of the Cut-off Date (the "Auction Date"), the
Trustee shall solicit, or cause to be solicited, good faith bids for the Trust
Collateral from at least three institutions that are regular purchasers and/or
sellers in the secondary market of residential whole mortgage loans similar to
the Mortgage Loans. If the Trustee receives at least three bids for the Trust
Collateral, and one of such bids is equal to or greater than the Par Value, the
Trustee shall sell the Trust Collateral to the highest bidder (the "Auction
Purchaser") at the price offered by the Auction Purchaser (the "Mortgage Loan
Purchase Price") and following such sale shall have no further liability or
responsibility therefor. If the Trustee receives less than three bids, or does
not receive any bid that is equal to or greater than the Par Value, the Trustee
shall continue conducting auctions every six months until the earlier of (a) the
completion of a successful auction and (b) the Optional Termination Holder
exercises its purchase option. Only expenses incurred by the Trustee in
connection with the solicitation of bids for a successful auction described in
this paragraph shall be payable to the Trustee, out of the Mortgage Loan
Purchase Price received in connection with such successful auction, as described
in Section 9.02 hereof; provided, however that any indemnification rights
available to the Trustee under this Agreement in connection with any auctions
will not be limited by this sentence.

            SECTION 9.02 Final Distribution on the Certificates.

            If on any Determination Date, the Trustee determines that there are
no Outstanding Mortgage Loans and no other funds or assets in the Trust Fund
other than the funds in the Collection Accounts and Certificate Account, the
Trustee shall promptly send a final distribution notice to each
Certificateholder. If the Optional Termination Holder above elects to terminate
the Trust Fund pursuant to Section 9.01 or the Auction Purchaser purchases the
Trust Collateral pursuant to Section 9.01, at least 20 days prior to the date
notice is to be mailed to the affected Certificateholders such Person shall
notify the Servicer and the Trustee of the date the Optional Termination Holder
or the Auction Purchaser intends to terminate the Trust Fund and of the
applicable repurchase price of the Mortgage Loans and REO Properties.

            Notice of any termination of the Trust Fund, specifying the
Distribution Date on which Certificateholders shall surrender their Certificates
for payment of the final distribution and cancellation, shall be given promptly
by the Trustee by letter to Certificateholders mailed not earlier than the 10th
day and not later than the 15th day of the month next preceding the month of
such final distribution. Any such notice shall specify (a) the Distribution Date
upon which final distribution on the Certificates will be made upon presentation
and surrender of Certificates at the office therein designated, (b) the amount
of such final distribution, (c) the location of the office or agency at which
such presentation and surrender must be made, and (d) that the Record Date
otherwise applicable to such Distribution Date is not applicable, distributions
being made only upon presentation and surrender of the Certificates at the
office therein specified. The Trustee shall give such notice to each Rating
Agency at the time such notice is given to Certificateholders.

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            Upon presentation and surrender of the Certificates, the Trustee
shall cause the final distribution to the Certificateholders of each Class on
the final Distribution Date to be made in accordance with the priorities of
Section 4.02. On the final Distribution Date, the Overcollateralization Amount
shall be distributed to the Class X-1 Certificates in accordance with Section
4.02(b)(iv)(I) hereof. Notwithstanding the foregoing, if the final Distribution
Date has occurred as a result of the Optional Termination Holder's purchase of
the Trust Fund pursuant to Section 9.01(a) or the purchase of the Trust
Collateral by the Auction Purchaser pursuant to Section 9.01(c), all amounts, if
any, in excess of the Par Value shall be distributed by the Trustee directly to
the Class A-RL Certificateholders. All amounts described in the definition of
"Par Value" payable to the Trustee shall be paid to the Trustee from the
proceeds of an optional termination or from the Mortgage Loan Purchase Price
received in connection with a successful auction, as applicable, prior to any
distributions to Certificateholders.

            In the event that any affected Certificateholders shall not
surrender Certificates for cancellation within six months after the date
specified in the above mentioned written notice, the Trustee shall give a second
written 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 the applicable
Certificates shall not have been surrendered for cancellation, the Trustee may
take appropriate steps, or may appoint an agent to take appropriate 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 a part of the Trust Fund. If within one year after the
second notice all Certificates shall not have been surrendered for cancellation,
the Class A-R Certificateholders and Class A-RL Certificateholders shall be
entitled to all unclaimed funds and other assets of the Trust Fund which remain
subject hereto and the Trustee shall be discharged from all further liability
with respect to the Certificates and this Agreement.

            SECTION 9.03 Additional Termination Requirements.

            (a) In the event that the Optional Termination Holder exercises its
purchase option with respect to the Mortgage Loans as provided in Section 9.01
or the Auction Purchaser purchases the Mortgage Loans pursuant to Section 9.01,
at such time as the Mortgage Loans are so purchased, the Trust Fund shall be
terminated in accordance with the following additional requirements, unless the
Trustee has been supplied with an Opinion of Counsel, at the expense of the
Depositor, to the effect that the failure to comply with the requirements of
this Section 9.03 will not (i) result in the imposition of taxes on "prohibited
transactions" on any REMIC as defined in Section 860F of the Code, or (ii) cause
REMIC 1, REMIC 2 and REMIC 3 to fail to qualify as a REMIC at any time that any
Certificates are outstanding:

                  (1)   Within 90 days prior to the final Distribution Date set
                        forth in the notice given by the Trustee under Section
                        9.02, the Depositor shall prepare and the Trustee, at
                        the expense of the Depositor, shall adopt a plan of
                        complete liquidation within the meaning of Section
                        860F(a)(4) of the Code which, as evidenced by an Opinion
                        of Counsel (which opinion shall not be an expense of the
                        Trustee, the

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                        Tax Matters Person or the Trust Fund), meets the
                        requirements of a qualified liquidation;

                  (2)   Within 90 days after the time of adoption of such a plan
                        of complete liquidation, the Trustee shall sell all of
                        the assets of the Trust Fund to the Depositor for cash
                        in accordance with Section 9.01; and

                              On the date specified for final payment of the
                        Certificates, the Trustee shall, after payment of any
                        unreimbursed Advances, Servicing Advances, Servicing
                        Fees or other fee compensation payable to the Servicer
                        pursuant to this Agreement, make final distributions of
                        principal and interest on the Certificates in accordance
                        with Section 4.02 and distribute or credit, or cause to
                        be distributed or credited, to the Holders of the
                        Residual Certificates all cash on hand after such final
                        payment (other than the cash retained to meet claims),
                        and the Trust Fund (and any REMIC) shall terminate at
                        that time.

            (b) The Trustee as agent for REMIC 1, REMIC 2 and REMIC 3 hereby
agrees to adopt and sign such a plan of complete liquidation upon the written
request of the Depositor, and the receipt of the Opinion of Counsel referred to
in Section 9.03(a)(1) and to take such other action in connection therewith as
may be reasonably requested by the Depositor.

            (c) By their acceptance of the Certificates, the Holders thereof
hereby authorize the Depositor to prepare and the Trustee to adopt and sign a
plan of complete liquidation.

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                                   ARTICLE X

                            MISCELLANEOUS PROVISIONS

            SECTION 10.01 Amendment.

            This Agreement may be amended from time to time by the Depositor,
the Servicer, the Seller and the Trustee without the consent of any of the
Certificateholders (i) to cure any ambiguity or mistake, (ii) to correct any
defective provision herein or to supplement any provision herein which may be
inconsistent with any other provision herein, (iii) to add to the duties of the
Depositor, the Seller or the Servicer, (iv) to add any other provisions with
respect to matters or questions arising hereunder or (v) to modify, alter,
amend, add to or rescind any of the terms or provisions contained in this
Agreement; provided that any action pursuant to clauses (iv) or (v) above shall
not, as evidenced by an Opinion of Counsel (which Opinion of Counsel shall not
be an expense of the Trustee or the Trust Fund, but shall be at the expense of
the party proposing such amendment), adversely affect in any material respect
the interests of any Certificateholder; provided, however, that no such Opinion
of Counsel shall be required if the Person requesting the amendment obtains a
letter from each Rating Agency stating that the amendment would not result in
the downgrading or withdrawal of the respective ratings then assigned to the
Certificates; it being understood and agreed that any such letter in and of
itself will not represent a determination as to the materiality of any such
amendment and will represent a determination only as to the credit issues
affecting any such rating. The Trustee, the Depositor, the Seller and the
Servicer also may at any time and from time to time amend this Agreement without
the consent of the Certificateholders to modify, eliminate or add to any of its
provisions to such extent as shall be necessary or helpful to (i) maintain the
qualification of REMIC 1, REMIC 2 and REMIC 3 as a REMIC under the Code, (ii)
avoid or minimize the risk of the imposition of any tax on the Trust Fund
pursuant to the Code that would be a claim at any time prior to the final
redemption of the Certificates or (iii) comply with any other requirements of
the Code, provided that the Trustee has been provided an Opinion of Counsel,
which opinion shall be an expense of the party requesting such opinion but in
any case shall not be an expense of the Trustee or the Trust Fund, to the effect
that such action is necessary or helpful to, as applicable, (i) maintain such
qualification, (ii) avoid or minimize the risk of the imposition of such a tax
or (iii) comply with any such requirements of the Code.

            This Agreement may also be amended from time to time by the
Depositor, the Servicer, the Seller and the Trustee with the consent of the
Holders of a Majority in Interest of each Class of Certificates affected thereby
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 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 clause (i), without the consent of the Holders of Certificates
of such Class evidencing, as to such Class, Percentage Interests

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aggregating 66%, or (iii) reduce the aforesaid percentages of Certificates the
Holders of which are required to consent to any such amendment, without the
consent of the Holders of all such Certificates then outstanding.

            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, which opinion shall not be an expense
of the Trustee or the Trust Fund, but shall be at the expense of the party
preparing such amendment, to the effect that such amendment will not cause the
imposition of any federal tax on the Trust Fund or the Certificateholders or
cause REMIC 1, REMIC 2 and REMIC 3 to fail to qualify as a REMIC at any time
that any Certificates are outstanding.

            Promptly after the execution of any amendment to this Agreement, the
Trustee shall furnish written notification of the substance or a copy of such
amendment to each Certificateholder if the consent of Certificateholders was
required and each Rating Agency.

            It shall not be necessary for the consent of Certificateholders
under this Section 10.01 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.

            Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel (which Opinion shall not be an
expense of the Trustee or the Trust Fund), satisfactory to the Trustee that (i)
such amendment is permitted and is not prohibited by this Agreement and that all
requirements for amending this Agreement have been complied with; and (ii)
either (A) the amendment does not adversely affect in any material respect the
interests of any Certificateholder or (B) the conclusion set forth in the
immediately preceding clause (A) is not required to be reached pursuant to this
Section 10.01.

            SECTION 10.02 Recordation of Agreement; Counterparts.

            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 Depositor at its expense, but only upon
direction by the Trustee 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.

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            SECTION 10.03 Governing Law.

            THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

            SECTION 10.04 [Reserved]

            SECTION 10.05 Notices.

            (a) The Trustee shall use its best efforts to promptly provide
notice to each Rating Agency with respect to each of the following of which it
has actual knowledge:

            (i) Any material change or amendment to this Agreement;

            (ii) The occurrence of any Event of Default that has not been cured;

            (iii) The resignation or termination of the Servicer or the Trustee
      and the appointment of any successor;

            (iv) The repurchase or substitution of Mortgage Loans pursuant to
      Sections 2.02 and 2.03; and

            (v) The final payment to Certificateholders.

            (b) In addition, the Trustee shall promptly furnish to each Rating
Agency copies of the following to the extent such items are in its possession:

            (i) Each report to Certificateholders described in Section 4.06 and
      3.19;

            (ii) Each annual statement as to compliance described in Section
      3.16;

            (iii) Each annual independent public accountants' servicing report
      described in Section 3.17; and

            (iv) Any notice of a purchase of a Mortgage Loan pursuant to Section
      2.02, 2.03 or 3.11.

            All directions, demands and notices hereunder shall be in writing
and shall be deemed to have been duly given when delivered to (a) in the case of
the Depositor and the Seller, Eleven Madison Avenue, 4th Floor, New York, New
York 10010, Attention: John P. Graham (with a copy to Credit Suisse First Boston
Mortgage Securities Corp., Eleven Madison Avenue, 4th Floor, New York, New York
10010, Attention: Office of the General Counsel), (b) in the

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case of the Trustee, the Corporate Trust Office or such other address as the
Trustee may hereafter furnish to the Depositor and the Servicer, (c) in the case
of Wilshire, 14523 SW Millikan Way, Suite 200, Beaverton, Oregon 97005
Attention: Jay Memmott, with a copy to Stoel Rives LLP, 900 SW Fifth, Portland,
Oregon 97204 Attention: Gary Barnum or such other address as may be hereafter
furnished in writing to the Depositor and the Trustee by the Servicer and (d) in
the case of each of the Rating Agencies, the address specified therefor in the
definition corresponding to the name of such Rating Agency. Notices to
Certificateholders shall be deemed given when mailed, first class postage
prepaid, to their respective addresses appearing in the Certificate Register.

            SECTION 10.06 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 10.07 Assignment.

            Notwithstanding anything to the contrary contained herein, except as
provided in Sections 6.02 and 6.04, this Agreement may not be assigned by the
Servicer without the prior written consent of the Trustee and Depositor;
provided, however, that neither the Depositor nor the Trustee shall consent to
any such assignment unless each Rating Agency has confirmed in writing that such
assignment will not cause a reduction or withdrawal of the ratings then assigned
by it to any Class of Certificates.

            SECTION 10.08 Limitation on Rights of Certificateholders.

            The death or incapacity of any Certificateholder shall not operate
to terminate this Agreement or the trust created hereby, nor entitle such
Certificateholder's legal representative or heirs to claim an accounting or to
take any action or commence any proceeding in any court for a petition or
winding up of the trust created hereby, or 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
provided 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 or by availing
itself of any provisions of this Agreement to institute any suit, action or
proceeding in equity or at law upon

                                      131
<PAGE>

or under or with respect to this Agreement, unless such Holder previously shall
have given to the Trustee a written notice of an Event of Default and of the
continuance thereof, as herein provided, and unless the Holders of Certificates
evidencing not less than 25% of the Voting Rights evidenced by the Certificates
shall also have made written request to 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 being understood and intended, and being 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 or by availing itself or themselves of any provisions of this
Agreement to affect, disturb or prejudice the rights of the Holders of any other
of the 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 common benefit of all Certificateholders.
For the protection and enforcement of the provisions of this Section 10.08, each
and every Certificateholder and the Trustee shall be entitled to such relief as
can be given either at law or in equity.

            SECTION 10.09 Certificates Nonassessable and Fully Paid.

            It is the intention of the Depositor that Certificateholders shall
not be personally liable for obligations of the Trust Fund, that the interests
in the Trust Fund represented by the Certificates shall be nonassessable for any
reason whatsoever, and that the Certificates, upon due authentication thereof by
the Trustee pursuant to this Agreement, are and shall be deemed fully paid.

            SECTION 10.10 Non-Solicitation

            From and after the date of this Agreement, each of the Depositor,
the Seller, the Servicer and the Trustee agrees that it will not take any action
or permit or cause any action to be taken by any of its agents or affiliates, or
by any independent contractors on any such party's behalf, to personally, by
telephone, by mail, or electronically by e-mail or through the internet or
otherwise, solicit the borrower or obligor under any Mortgage Loan to refinance
the Mortgage Loan, in whole or in part. Notwithstanding the foregoing, it is
understood and agreed that promotions undertaken by the Depositor, the Seller,
the Servicer or the Trustee or any affiliate of any such party that originates
mortgage loans in the normal course, which are directed to the general public at
large, or segments thereof, including, without limitation, mass mailings based
on commercially acquired mailing lists or newspaper, internet, company website,
radio and television advertisements shall not constitute solicitation under this
Section 10.10, provided, that no segment of the general public shall consist
primarily of the borrowers or obligors under the Mortgage Loans. None of the
Depositor, the Seller, the Servicer or the Trustee shall permit the sale of the
name of any Mortgagor or any list of names that consist primarily of the
Mortgages to any Person.

                                      132
<PAGE>

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

                                  CREDIT SUISSE FIRST BOSTON MORTGAGE
                                  SECURITIES CORP.,
                                  as Depositor

                                  By:      /s/ John P. Graham
                                           -------------------------------
                                  Name:    John P. Graham
                                  Title:   Vice President

                                  JPMORGAN CHASE BANK,
                                  as Trustee

                                  By:      /s/ Annete Marsula
                                           -------------------------------
                                  Name:    Annete Marsula
                                  Title:

                                  DLJ MORTGAGE CAPITAL, INC.,
                                  as Seller

                                  By:      /s/ Peter J. Sack
                                           -------------------------------
                                  Name:    Peter J. Sack
                                  Title:   Vice President

                                  WILSHIRE CREDIT CORPORATION,
                                  as Servicer

                                  By:      /s/ Heidi Peterson
                                           -------------------------------
                                  Name:    Heidi Peterson
                                  Title:   Vice President

                          [Notary pages to be attached]

<PAGE>

                                    EXHIBIT A

                          [FORM OF CLASS A CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

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").

                                      A-1
<PAGE>

Certificate No. [____]          Adjustable Pass-Through Rate
Cut-off Date:                   Initial Certificate Balance of this Certificate
October 1, 2004                 ("Denomination"):
                                $[_________________]
First Distribution Date:        Initial Certificate Balances of all Certificates
November 26, 2004               of this Class:
                                $[_________________]
Maturity Date:                  CUSIP: [_________________]
February 25, 2035

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                        Home Equity Mortgage Trust 2004-5
          Home Equity Mortgage Pass-Through Certificates, Series 2004-5
                                 Class [_______]

         evidencing a percentage interest in the distributions allocable to the
         Certificates of the above-referenced Class with respect to a Trust Fund
         consisting primarily of a pool of conventional mortgage loans (the
         "Mortgage Loans") secured by fixed rate, second lien residential
         mortgage loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance at any time may be less
than the Certificate Balance as set forth herein. This Certificate is payable
solely from the assets of the Trust and does not evidence an obligation of, or
an interest in, and is not guaranteed by the Depositor, the Seller, the Servicer
or the Trustee referred to below or any of their respective affiliates. This
Certificate and the Mortgage Loans are not guaranteed or insured by any
governmental agency or instrumentality.

         This certifies that [ ] is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the denomination of
this Certificate by the aggregate of the denominations of all Certificates of
the Class to which this Certificate belongs) in certain monthly distributions
with respect to a Trust Fund consisting primarily of the Mortgage Loans
deposited by Credit Suisse First Boston Mortgage Securities Corp. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as servicer ("Wilshire" or the "Servicer") and JPMorgan Chase Bank
as trustee (the "Trustee"). To the extent not defined herein, the capitalized
terms used herein have the meanings assigned to such terms 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.

                                      A-2
<PAGE>

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-3
<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October 28, 2004                      JPMORGAN CHASE BANK,
                                             as Trustee

                                             By:
                                                ------------------------------

Countersigned:

By:
   ---------------------------------
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                      A-4
<PAGE>

                                    EXHIBIT B

                        [FORM OF SUBORDINATE CERTIFICATE]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

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 IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS
DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

[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.]

                                      B-1
<PAGE>

Certificate No. [____]        [Adjustable  Pass-Through  Rate]  [  ____%
                              Pass-Through Rate]
Cut-off Date:                 Initial Certificate Balance of this Certificate
October 1, 2004               ("Denomination"):
                              $[_________________]
First Distribution Date:      Initial Certificate Balances of all Certificates
November 26, 2004             of this Class:
                              $[_________________]
Maturity Date:                CUSIP: [_________________]
February 25, 2035

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                        Home Equity Mortgage Trust 2004-5
          Home Equity Mortgage Pass-Through Certificates, Series 2004-5
                                 Class [_______]

         evidencing a percentage interest in the distributions allocable to the
         Certificates of the above-referenced Class with respect to a Trust Fund
         consisting primarily of a pool of conventional mortgage loans (the
         "Mortgage Loans") secured by fixed rate, second lien residential
         mortgage loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance at any time may be less
than the Certificate Balance as set forth herein. This Certificate is payable
solely from the assets of the Trust and does not evidence an obligation of, or
an interest in, and is not guaranteed by the Depositor, the Seller, the Servicer
or the Trustee referred to below or any of their respective affiliates. This
Certificate and the Mortgage Loans are not guaranteed or insured by any
governmental agency or instrumentality.

         This certifies that [__________] is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
denomination of this Certificate by the aggregate of the denominations of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions with respect to a Trust Fund consisting primarily of the Mortgage
Loans deposited by Credit Suisse First Boston Mortgage Securities Corp. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as servicer ("Wilshire" or the "Servicer") and JPMorgan Chase Bank
as trustee (the "Trustee"). To the extent not defined herein, the capitalized
terms used herein have the meanings assigned to such terms 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.

                                      B-2
<PAGE>

         No transfer of a Certificate of this Class shall be made except in
compliance with section 5.02 of the Pooling Servicing Agreement.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      B-3
<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October 28, 2004                          JPMORGAN CHASE BANK,
                                                 as Trustee

                                                 By:
                                                    -----------------------

Countersigned:

By
  ---------------------------------
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                      B-4
<PAGE>

                                    EXHIBIT C

                         [FORM OF RESIDUAL CERTIFICATE]

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL
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").

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE
WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE, OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. NOTWITHSTANDING ANYTHING ELSE TO
THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF
OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION
OF COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF
NO EFFECT.

                                      C-1
<PAGE>

Certificate No. [____]          Variable Pass-Through Rate
Cut-off Date:                   Initial Certificate Balance of this Certificate
October 1, 2004                 ("Denomination"):
                                $[_________________]

First Distribution Date:        Initial Certificate Balances of all Certificates
November 26, 2004               of this Class:
                                $[_________________]

Maturity Date:                  CUSIP: [_________________]
February 25, 2035

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                        Home Equity Mortgage Trust 2004-5
          Home Equity Mortgage Pass-Through Certificates, Series 2004-5
                                 Class [_______]

         evidencing the distributions allocable to the Class [A-R][A-RL]
         Certificates with respect to a Trust Fund consisting primarily of a
         pool of conventional mortgage loans (the "Mortgage Loans") secured by
         fixed rate, second lien residential mortgage loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance at any time may be less
than the Certificate Balance as set forth herein. This Certificate is payable
solely from the assets of the Trust and does not evidence an obligation of, or
an interest in, and is not guaranteed by the Depositor, the Seller, the Servicer
or the Trustee referred to below or any of their respective affiliates. This
Certificate and the Mortgage Loans are not guaranteed or insured by any
governmental agency or instrumentality.

         This certifies that [______________________] is the registered owner of
the Percentage Interest evidenced by this Certificate (obtained by dividing the
denomination of this Certificate by the aggregate of the denominations of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions with respect to a Trust Fund consisting primarily of the Mortgage
Loans deposited by Credit Suisse First Boston Mortgage Securities Corp. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as servicer ("Wilshire" or the "Servicer") and JPMorgan Chase Bank
as trustee (the "Trustee"). To the extent not defined herein, the capitalized
terms used herein have the meanings assigned to such terms 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.

                                      C-2
<PAGE>

         Any distribution of the proceeds of any remaining assets of the Trust
Fund will be made only upon presentment and surrender of this Class [A-R][A-RL]
Certificate at the Corporate Trust Office or the office or agency maintained by
the Trustee in New York, New York.

         No transfer of a Class [A-R][A-RL] Certificate shall be made unless the
Trustee shall have received either (i) a representation letter from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trustee, to the effect that such transferee is not an
employee benefit plan subject to Section 406 of ERISA or Section 4975 of the
Code, or a person acting on behalf of any such plan or arrangement or using the
assets of any such plan or arrangement to effect such transfer, which
representation letter shall not be an expense of the Trustee or the Trust Fund
or (ii) in the case of any such Class [A-R][A-RL] Certificate presented for
registration in the name of an employee benefit plan subject to ERISA, or
Section 4975 of the Code (or comparable provisions of any subsequent
enactments), or a trustee of any such plan or any other person acting on behalf
of any such plan or arrangement, or using such plan's or arrangement's assets,
an Opinion of Counsel addressed to the Trustee, for the benefit of the Trustee,
the Depositor and the Servicer and on which they may rely, and satisfactory to
the Trustee to the effect that the purchase or holding of such Class [A-R][A-RL]
Certificate will not result in the assets of the Trust Fund being deemed to be
"plan assets" and subject to the prohibited transaction provisions of ERISA and
the Code and will not subject the Trustee to any obligation in addition to those
undertaken in this Agreement, which Opinion of Counsel shall not be an expense
of the Trustee or the Trust Fund. Notwithstanding anything else to the contrary
herein, any purported transfer of a Class [A-R][A-RL] Certificate to or on
behalf of an employee benefit plan subject to ERISA or to the Code without the
Opinion of Counsel satisfactory to the Trustee as described above shall be void
and of no effect.

         Each Holder of this Class [A-R][A-RL] Certificate will be deemed to
have agreed to be bound by the restrictions of the Agreement, including but not
limited to the restrictions that (i) each person holding or acquiring any
Ownership Interest in this Class [A-R][A-RL] Certificate must be a Permitted
Transferee, (ii) no Ownership Interest in this Class [A-R][A-RL] Certificate may
be transferred without delivery to the Trustee of (a) a transfer affidavit of
the proposed transferee and (b) a transfer certificate of the transferor, each
of such documents to be in the form described in the Agreement, (iii) each
person holding or acquiring any Ownership Interest in this Class [A-R][A-RL]
Certificate must agree to require a transfer affidavit and to deliver a transfer
certificate to the Trustee as required pursuant to the Agreement, (iv) each
person holding or acquiring an Ownership Interest in this Class [A-R][A-RL]
Certificate must agree not to transfer an Ownership Interest in this Class
[A-R][A-RL] Certificate if it has actual knowledge that the proposed transferee
is not a Permitted Transferee and (v) any attempted or purported transfer of any
Ownership Interest in this Class [A-R][A-RL] Certificate in violation of such
restrictions will be absolutely null and void and will vest no rights in the
purported transferee.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      C-3
<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October 28, 2004                              JPMORGAN CHASE BANK,
                                                     as Trustee

                                                     By:
                                                        ----------------------

Countersigned:

By
-------------------------------------
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                      C-4
<PAGE>

                                    EXHIBIT D

                      [FORM OF NOTIONAL AMOUNT CERTIFICATE]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

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 IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS
DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.]

THIS CERTIFICATE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY
DISTRIBUTIONS IN RESPECT OF PRINCIPAL.

[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.]

                                      D-1
<PAGE>

Certificate No. [____]           Variable Interest Rate

Cut-off Date:                    Initial Notional Amount of this Certificate
October 1, 2004                  ("Denomination"):
                                 $[_________________]

First Distribution Date:         Initial Notional Amount of all Certificates of
November 26, 2004                this Class:
                                 $[_________________]

Maturity Date:                   CUSIP: [_________________]
February 25, 2035

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                    Home Equity Mortgage Trust Series 2004-5
          Home Equity Mortgage Pass-Through Certificates, Series 2004-5
                                    Class [ ]

         evidencing a percentage interest in the distributions allocable to the
         Certificates of the above-referenced Class with respect to a Trust Fund
         consisting primarily of a pool of conventional mortgage loans (the
         "Mortgage Loans") secured by fixed rate, second lien residential
         mortgage loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

         This Certificate is payable solely from the assets of the Trust and
does not evidence an obligation of, or an interest in, and is not guaranteed by
the Depositor, the Seller, the Servicer or the Trustee referred to below or any
of their respective affiliates. This Certificate and the Mortgage Loans are not
guaranteed or insured by any governmental agency or instrumentality.

         This certifies that ___________, is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
denomination of this Certificate by the aggregate of the denominations of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions with respect to a Trust Fund consisting primarily of the Mortgage
Loans deposited by Credit Suisse First Boston Mortgage Securities Corp. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as servicer ("Wilshire" or the "Servicer") and JPMorgan Chase Bank
as trustee (the "Trustee"). To the extent not defined herein, the capitalized
terms used herein have the meanings assigned to such terms 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.

                                      D-2
<PAGE>

         [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.]

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      D-3
<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October 28, 2004                          JPMORGAN CHASE BANK,
                                                 as Trustee

                                                 By:
                                                     ---------------------------

Countersigned:

By
   ------------------------------------
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

<PAGE>

                                    EXHIBIT E

                          [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.

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. NOTWITHSTANDING ANYTHING ELSE TO
THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF
OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION
OF COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF
NO EFFECT.

                                      E-1
<PAGE>

Certificate No. [____]         Variable Pass-Through Rate

Cut-off Date:                  Initial Certificate Balance of this Certificate
October 1, 2004                ("Denomination"):
                               $[_________________]

First Distribution Date:       Initial Certificate Balances of all Certificates
November 26, 2004              of this Class:
                               $[_________________]

Maturity Date:                 CUSIP: [_________________]
February 25, 2035

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                        Home Equity Mortgage Trust 2004-5
          Home Equity Mortgage Pass-Through Certificates, Series 2004-5
                                 Class [_______]

         evidencing a percentage interest in the distributions allocable to the
         Certificates of the above-referenced Class with respect to a Trust Fund
         consisting primarily of a pool of conventional mortgage loans (the
         "Mortgage Loans") secured by fixed rate, first and second lien
         residential mortgage loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance of this Class P
Certificate at any time may be less than the Initial Certificate Balance set
forth on the face hereof, as described herein. This Class P Certificate does not
evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Servicer or the Trustee referred to below or any of their
respective affiliates.

         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 Initial Class Principal
Balance) in certain distributions with respect to a Trust consisting primarily
of the Mortgage Loans deposited by Credit Suisse First Boston Mortgage
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of October 1, 2004 (the "Agreement") among the
Depositor, DLJ Mortgage Capital Inc., as seller ("DLJMC"), Wilshire Credit
Corporation as servicer ("Wilshire" or the "Servicer") and JPMorgan Chase Bank,
as trustee (the "Trustee"). To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement. This Class P
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Class P
Certificate by virtue of the acceptance hereof assents and by which such Holder
is bound.

                                      E-2
<PAGE>

         This Certificate does not have a pass-through rate and will be entitled
to distributions only to the extent set forth in the Agreement.

         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 Depositor 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 Depositor
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 Seller, the Servicer or the Depositor; or there shall be
delivered to the Trustee and the Depositor 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 Depositor 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 a Class P Certificate shall be made unless the Trustee
shall have received either (i) a representation letter from the transferee of
such Certificate, acceptable to and in form and substance satisfactory to the
Trustee, to the effect that such transferee is not an employee benefit plan
subject to Section 406 of ERISA or Section 4975 of the Code, or a person acting
on behalf of any such plan or arrangement or using the assets of any such plan
or arrangement to effect such transfer, which representation letter shall not be
an expense of the Trustee or the Trust Fund or (ii) in the case of any such
Class P Certificate presented for registration in the name of an employee
benefit plan subject to ERISA, or Section 4975 of the Code (or comparable
provisions of any subsequent enactments), or a trustee of any such plan or any
other person acting on behalf of any such plan or arrangement, or using such
plan's or arrangement's assets, an Opinion of Counsel addressed to the Trustee,
for the benefit of the Trustee, the Depositor and the Servicer and on which they
may rely, and satisfactory to the Trustee to the effect that the purchase or
holding of such Class P Certificate will not result in the assets of the Trust
Fund being deemed to be "plan assets" and subject to the prohibited transaction
provisions of ERISA and the Code and will not subject the Trustee to any
obligation in addition to those undertaken in this Agreement, which Opinion of
Counsel shall not be an expense of the Trustee or the Trust Fund.
Notwithstanding anything else to the contrary herein, any purported transfer of
a Class P Certificate to or on behalf of an employee benefit plan subject to
ERISA or to the Code without the Opinion of Counsel satisfactory to the Trustee
as described above shall be void and of no effect.

         Reference is hereby made to the further provisions of this Class P
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class P Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      E-3
<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October 28, 2004                            JPMORGAN CHASE BANK,
                                                   as Trustee

                                                   By:
                                                      --------------------------

Countersigned:

By
  ------------------------------
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                      E-4
<PAGE>

                                    EXHIBIT F

                        [FORM OF REVERSE OF CERTIFICATES]

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                        Home Equity Mortgage Trust 2004-5
          Home Equity Mortgage Pass-Through Certificates, Series 2004-5
                                 Class [_______]

         This Certificate is one of a duly authorized issue of Certificates
designated as Credit Suisse First Boston Mortgage Securities Corp., Mortgage
Pass-Through Certificates, of the Series specified on the face hereof (herein
collectively called the "Certificates"), and representing a beneficial ownership
interest in the Trust Fund created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Certificate Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         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 on the
first Distribution Date specified on the face hereof, to the Person in whose
name this Certificate is registered at the close of business on the applicable
Record Date in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount required to be distributed to
Holders of Certificates of the Class to which this Certificate belongs on such
Distribution Date pursuant to the Agreement. [The Record Date applicable to each
Distribution Date is the last Business Day of the month next preceding the month
of such Distribution Date.][The Record Date applicable to each Distribution Date
is the Business Day immediately preceding the related Distribution Date;
provided that if this Certificate is not a Book-Entry Certificate, then the
Record Date applicable to each Distribution Date is the last Business Day of the
month next preceding such Distribution Date.]

         Distributions on this Certificate shall be made by wire transfer of
immediately available funds to the account of the Holder hereof at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
shall have so notified the Trustee in writing at least five Business Days prior
to the related Record Date and such Certificateholder shall satisfy the
conditions to receive such form of payment set forth in the Agreement, or, if
not, by check mailed by first class mail to the address of such
Certificateholder appearing in the Certificate Register. The final distribution
on each Certificate will be made in like manner, but only upon presentment and
surrender of such Certificate at the Corporate Trust Office or such other
location specified in the notice to Certificateholders of such final
distribution.

                                      F-1
<PAGE>

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Seller and the Trustee with the consent of
the Holders of Certificates affected by such amendment evidencing the requisite
Percentage Interest, as provided in the Agreement. 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 therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the Corporate Trust Office or the office or agency maintained by the
Trustee in New York, New York, accompanied by a written instrument of transfer
in form satisfactory to the Trustee and the Certificate Registrar duly executed
by the holder hereof or such holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of the same Class in authorized
denominations and evidencing the same aggregate Percentage Interest in the Trust
Fund will be issued to the designated transferee or transferees.

         The Certificates are issuable only as registered Certificates without
coupons 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 the same Class in authorized denominations
and evidencing the same 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 Depositor, the Servicer, the Seller and the Trustee and any agent
of the Depositor or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and the Seller,
the Depositor, the Trustee, or any such agent shall be affected by any notice to
the contrary.

         On any Distribution Date on which the sum of the aggregate Stated
Principal Balance of the Mortgage Loans and the appraised value of the REO
Properties at the time of repurchase is less than 10% of the sum of the
Aggregate Collateral Balance of the Mortgage Loans as of the Cut-off Date, the
Optional Termination Holder will have the option to repurchase, in whole, from
the Trust Fund all remaining Mortgage Loans and REO Properties at a purchase
price determined as provided in the Agreement. If the Optional Termination
Holder does not exercise its option to purchase, on any Distribution Date on
which the sum of the aggregate Stated Principal Balance of the Mortgage Loans
and the appraised value of the REO Properties at the time of repurchase is less
than 10% of the sum of the Aggregate Collateral Balance of the Mortgage Loans as
of the Cut-off Date, the Trustee shall conduct an auction and upon satisfaction
of the conditions described in the Agreement, the Auction Purchaser shall
purchase

                                      F-2
<PAGE>

the Trust Collateral at a purchase price determined as provided in the
Agreement. In the event that no such optional termination occurs and no purchase
pursuant to an auction occurs, the obligations and responsibilities created by
the Agreement will terminate upon the later of the maturity or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in the
Trust Fund and the distribution to Certificateholders of all amounts required to
be distributed pursuant to the Agreement. In no event, however, will the trust
created by the Agreement continue beyond the expiration of 21 years from the
death of the last survivor of the descendants living at the date of the
Agreement of a certain person named in the Agreement.

         Any term used herein that is defined in the Agreement shall have the
meaning assigned in the Agreement, and nothing herein shall be deemed
inconsistent with that meaning.

                                      F-3
<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)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust Fund.

I (We) further direct the Trustee 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

                            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.

                                      F-4
<PAGE>

                                    EXHIBIT G

                   FORM OF INITIAL CERTIFICATION OF CUSTODIAN

                                October 28, 2004

Cut-off Date Principal Balance:
$_______________

JPMorgan Chase Bank,
as  Trustee, for the
Home Equity Mortgage Pass-Through Certificates, Series 2004-5
4 New York Plaza
New York, New York 10004-2697

         Re:      Custodial Agreement, dated as of October 1, 2004, between
                  JPMorgan Chase BANK, AS TRUSTEE AND LASALLE BANK NATIONAL
                  ASSOCIATION, AS CUSTODIAN

Ladies and Gentlemen:

         In accordance with the provisions of Section 4 of the above-referenced
Custodial Agreement, the undersigned, as the Custodian, hereby certifies as to
each Mortgage Loan in the Mortgage Loan Schedule that (i) it has received: the
original Mortgage Note and Assignment of Mortgage with respect to each Mortgage
Loan identified on the Mortgage Loan Schedule attached hereto as Exhibit A and
(ii) such Mortgage Note has been reviewed by it and appears regular on its face
and relates.

         The Custodian makes no representations as to: (i) the validity,
legality, enforceability, sufficiency, due authorization or genuineness of any
of the documents contained in each Custodial File or of any of the Mortgage
Loans or (ii) the collectability, insurability, effectiveness or suitability of
any such Mortgage Loan.

         The Custodian hereby confirms that it is holding each such Mortgage
Note and Assignment of Mortgage as agent and bailee of, and custodian for the
exclusive use and benefit, and subject to the sole direction, of the Trustee
pursuant to the terms and conditions of the Custodial Agreement.

         This Trust Receipt and Initial Certification is not divisible or
negotiable.

                                      G-1
<PAGE>

         The Custodian will accept and act on instructions with respect to the
Mortgage Loans subject hereto upon surrender of this Trust Receipt and Initial
Certification at its office at LaSalle Bank National Association: 2571 Busse
Road, Suite 200, Elk Grove, Illinois, 60007.

                                      G-2
<PAGE>

         Capitalized terms used herein shall have the meaning ascribed to them
in the Custodial Agreement.

                                               LASALLE BANK NATIONAL ASSOCIATION
                                               as Custodian

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

                                      G-3
<PAGE>

                                    EXHIBIT H

                    FORM OF FINAL CERTIFICATION OF CUSTODIAN

Trust Receipt #_________

Cut-off Date Principal Balance
$_____________

[To be addressed to the Trustee of record]

         Re:      Custodial Agreement, dated as of October 1, 2004, between
                  JPMorgan Chase BANK, AS TRUSTEE AND LASALLE BANK NATIONAL
                  ASSOCIATION, AS CUSTODIAN

Ladies and Gentlemen:

         In accordance with the provisions of Section 6 of the above-referenced
Custodial Agreement, the undersigned, as the Custodian, hereby certifies that as
to each Mortgage Loan listed on the Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or any Mortgage Loan listed on the attachment hereto)
it has reviewed the Custodial Files and has determined that (i) all documents
required to be delivered to it pursuant to Sections 2(i)-(ix) of the Custodial
Agreement are in its possession; (ii) such documents have been reviewed by it
and appear regular on their face and related to such Mortgage Loan; (iii) all
Assignments of Mortgage or intervening assignments of mortgage, as applicable,
have been submitted for recording in the jurisdictions in which recording is
necessary; and (iv) each Mortgage Note has been endorsed as provided in Section
2(ii) of the Custodial Agreement and each Mortgage has been assigned in
accordance with Section 2(iii) of the Custodial Agreement. The Custodian makes
no representations as to: (i) validity, legality, enforceability, sufficiency,
due authorization or genuineness of any of the documents contained in each
Custodial File or of any of the Mortgage Loans, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.

         The Custodian hereby confirms that it is holding each such Custodial
File as agent and bailee of, and custodian for the exclusion use and benefit,
and subject to the sole direction, of Trustee pursuant to the terms and
conditions of the Custodial Agreement.

         This Trust Receipt and Final Certification is not divisible or
negotiable.

         The Custodian will accept and act on instructions with respect to the
Mortgage Loans subject hereto upon surrender of this Trust Receipt and Final
Certification at its office at LaSalle Bank National Association: 2571 Busse
Road, Suite 200, Elk Grove, Illinois, 60007.

                                      H-1
<PAGE>

         Capitalized terms used herein shall have the meaning ascribed to them
in the Custodial Agreement.

                                             LASALLE BANK NATIONAL ASSOCIATION,
                                             as Custodian

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

                                      H-2
<PAGE>

                                    EXHIBIT I

                               TRANSFER AFFIDAVIT

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                        Home Equity Mortgage Trust 2004-5
          Home Equity Mortgage Pass-Through Certificates, Series 2004-5
                                 Class [_______]

STATE OF          )
                  ) ss.:
COUNTY OF         )

         The undersigned, being first duly sworn, deposes and says as follows:

         1. The undersigned is an officer of _______________, the proposed
Transferee of an Ownership Interest in a Class [A-R][A-RL] Certificate (the
"Certificate") issued pursuant to the Pooling and Servicing Agreement, (the
"Agreement"), relating to the above-referenced Series, among Credit Suisse First
Boston Mortgage Securities Corp. as depositor, DLJ Mortgage Capital, Inc. as
seller ("DLJMC"), Wilshire Credit Corporation as servicer ("Wilshire") and
JPMorgan Chase Bank as trustee (the "Trustee"). Capitalized terms used, but not
defined herein or in Exhibit 1 hereto, shall have the meanings ascribed to such
terms in the Agreement. The Transferee has authorized the undersigned to make
this affidavit on behalf of the Transferee.

         2. The Transferee is, as of the date hereof, and will be, as of the
date of the Transfer, a Permitted Transferee. The Transferee is acquiring its
Ownership Interest in the Certificate either (i) for its own account or (ii) as
nominee, trustee or agent for another Person and has attached hereto an
affidavit from such Person in substantially the same form as this affidavit. The
Transferee has no knowledge that any such affidavit is false.

         3. The Transferee has been advised of, and understands that (i) a tax
will be imposed on Transfers of the Certificate to Persons that are not
Permitted Transferees; (ii) such tax will be imposed on the transferor, or, if
such Transfer is through an agent (which includes a broker, nominee or
middleman) for a Person that is not a Permitted Transferee, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability for
the tax if the subsequent Transferee furnished to such Person an affidavit that
such subsequent Transferee is a Permitted Transferee and, at the time of
Transfer, such Person does not have actual knowledge that the affidavit is
false.

         4. The Transferee has been advised of, and understands that a tax will
be imposed on a "pass-through entity" holding the Certificate if at any time
during the taxable year of the pass-through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is a Permitted Transferee and the pass-through
entity does not have actual knowledge that such affidavit is false. (For this
purpose, a "pass-through entity" includes a regulated investment company, a real
estate investment trust or common trust fund, a

                                      I-1
<PAGE>

partnership, trust or estate, and certain cooperatives and, except as may be
provided in Treasury Regulations, persons holding interests in pass-through
entities as a nominee for another Person.)

         5. The Transferee has reviewed the provisions of Section 5.02(c) of the
Agreement (attached hereto as Exhibit 2 and incorporated herein by reference)
and understands the legal consequences of the acquisition of an Ownership
Interest in the Certificate including, without limitation, the restrictions on
subsequent Transfers and the provisions regarding voiding the Transfer and
mandatory sales. The Transferee expressly agrees to be bound by and to abide by
the provisions of Section 5.02(c) of the Agreement and the restrictions noted on
the face of the Certificate. The Transferee understands and agrees that any
breach of any of the representations included herein shall render the Transfer
to the Transferee contemplated hereby null and void.

         6. The Transferee agrees to require a Transfer Affidavit from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as EXHIBIT J to the Agreement (a "Transferor Certificate") to the
effect that such Transferee has no actual knowledge that the Person to which the
Transfer is to be made is not a Permitted Transferee.

         7. The Transferee does not have the intention to impede the assessment
or collection of any tax legally required to be paid with respect to the
Certificate.

         8. The Transferee's taxpayer identification number is [_____________].

         9. The Transferee is a United States Person.

         10. The Transferee is aware that the Certificate may be a "noneconomic
residual interest" within the meaning of proposed 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 to the
income on such residual interest, unless no significant purpose of the transfer
was to impede the assessment or collection of tax.

         11. The Transferee is (a) not an employee benefit plan that is subject
to ERISA or a plan that is subject to Section 4975 of the Code, and the
Transferee is not acting on behalf of such a plan or (b) an employee benefit
plan that is subject to ERISA or a plan that is subject to Section 4975 of the
Code, and the Transferee is not acting on behalf of such a plan and will provide
an Opinion of Counsel in accordance with the provisions of Agreement.

                                      * * *

                                      I-2
<PAGE>

         IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this _____ day of _____________, 20___.

                                           __________________________________
                                           Print Name of Transferee

                                           By: _______________________________
                                           Name:
                                           Title:

[Corporate Seal]

ATTEST:

______________________________
[Assistant] Secretary

         Personally appeared before me the above-named , known or proved to me
to be the same person who executed the foregoing instrument and to be the of the
Transferee, and acknowledged that he executed the same as his free act and deed
and the free act and deed of the Transferee.

         Subscribed and sworn before me this ______ day of _______________,
20___.

                                          _____________________________________
                                          NOTARY PUBLIC

                                          My Commission expires the _____ day of

                                          _________________, 20___.

                                      I-3
<PAGE>

                                    EXHIBIT 1
                                       to
                                    EXHIBIT I

Certain Definitions

         "Ownership Interest": As to any Residual 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.

         "Permitted Transferee": Any person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality of
any of the foregoing, (ii) a foreign government, International Organization or
any agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code)
which is exempt from tax imposed by Chapter 1 of the Code (including the tax
imposed by section 511 of the Code on unrelated business taxable income) on any
excess inclusions (as defined in section 860E(c)(1) of the Code) with respect to
any Residual Certificate, (iv) rural electric and telephone cooperatives
described in section 1381(a)(2)(C) of the Code, (v) a Person that is not a
United States Person, and (vi) a Person designated as a non-Permitted Transferee
by the Depositor based upon an Opinion of Counsel that the Transfer of an
Ownership Interest in a Residual Certificate to such Person may cause any REMIC
created hereunder to fail to qualify as a REMIC at any time that the
Certificates are outstanding. The terms "United States," "State" and
"International Organization" shall have the meanings set forth in section 7701
of the Code or successor provisions. A corporation will not be treated as an
instrumentality of the United States or of any State or political subdivision
thereof for these purposes if all of its activities are subject to tax and, with
the exception of Freddie Mac, a majority of its board of directors is not
selected by such government unit.

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

         "Transfer": Any direct or indirect transfer or sale of any Ownership
Interest in a Residual Certificate.

                                     I-1-1

<PAGE>

                                    EXHIBIT 2
                                       to
                                    EXHIBIT I

                        Section 5.02(c) of the Agreement
                        --------------------------------

         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
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:

         (i) Each Person holding or acquiring any Ownership Interest in a
Residual Certificate shall be a Permitted Transferee and shall promptly notify
the Trustee of any change or impending change in its status as a Permitted
Transferee.

         (ii) No Ownership Interest in a Residual Certificate may be registered
on the Closing Date or thereafter transferred, and the Trustee shall not
register the Transfer of any Residual Certificate unless, in addition to the
certificates required to be delivered to the Trustee under subparagraph (b)
above, the Trustee shall have been furnished with an affidavit (a "Transfer
Affidavit") of the initial owner or the proposed transferee in the form attached
hereto as Exhibit I.

         (iii) Each Person holding or acquiring any Ownership Interest in a
Residual Certificate shall agree (A) to obtain a Transfer Affidavit from any
other Person to whom such Person attempts to Transfer its Ownership Interest in
a Residual Certificate, (B) to obtain a Transfer Affidavit from any Person for
whom such Person is acting as nominee, trustee or agent in connection with any
Transfer of a Residual Certificate and (C) not to Transfer its Ownership
Interest in a Residual Certificate or to cause the Transfer of an Ownership
Interest in a Residual Certificate to any other Person if it has actual
knowledge that such Person is not a Permitted Transferee.

         (iv) Any attempted or purported Transfer of any Ownership Interest in a
Residual Certificate in violation of the provisions of this Section 5.02(c)
shall be absolutely null and void and shall vest no rights in the purported
Transferee. If any purported transferee shall become a Holder of a Residual
Certificate in violation of the provisions of this Section 5.02(c), then the
last preceding Permitted Transferee shall be restored to all rights as Holder
thereof retroactive to the date of registration of Transfer of such Residual
Certificate. The Trustee shall be under no liability to any Person for any
registration of Transfer of a Residual Certificate that is in fact not permitted
by Section 5.02(b) and this Section 5.02(c) or for making any payments due on
such Certificate to the Holder thereof or taking any other action with respect
to such Holder under the provisions of this Agreement so long as the Transfer
was registered after receipt of the related Transfer Affidavit and Transferor
Certificate. The Trustee shall be entitled but not obligated to recover from any
Holder of a Residual Certificate that was in fact not a Permitted Transferee at
the time it became a Holder or, at such subsequent time as it became other than
a Permitted Transferee, all payments made on such Residual Certificate at and
after either such time. Any such payments so recovered by the Trustee shall be
paid and delivered by the Trustee to the last preceding Permitted Transferee of
such Certificate.

                                     I-2-1

<PAGE>

         (v) The Depositor shall use its best efforts to make available, upon
receipt of written request from the Trustee, all information necessary to
compute any tax imposed under Section 860E(e) of the Code as a result of a
Transfer of an Ownership Interest in a Residual Certificate to any Holder who is
not a Permitted Transferee.

                  The restrictions on Transfers of a Residual Certificate set
forth in this Section 5.02(c) shall cease to apply (and the applicable portions
of the legend on a Residual Certificate may be deleted) with respect to
Transfers occurring after delivery to the Trustee of an Opinion of Counsel,
which Opinion of Counsel shall not be an expense of the Trust Fund, the Trustee,
the Seller or the Servicer, to the effect that the elimination of such
restrictions will not cause the Trust Fund hereunder to fail to qualify as a
REMIC at any time that the Certificates are outstanding or result in the
imposition of any tax on the Trust Fund, a Certificateholder or another Person.
Each Person holding or acquiring any Ownership Interest in a Residual
Certificate hereby consents to any amendment of this Agreement which, based on
an Opinion of Counsel furnished to the Trustee, is reasonably necessary (a) to
ensure that the record ownership of, or any beneficial interest in, a Residual
Certificate is not transferred, directly or indirectly, to a Person that is not
a Permitted Transferee and (b) to provide for a means to compel the Transfer of
a Residual Certificate which is held by a Person that is not a Permitted
Transferee to a Holder that is a Permitted Transferee.

                                     I-2-2

<PAGE>

                                    EXHIBIT J

                         FORM OF TRANSFEROR CERTIFICATE

__________, 200__

Credit Suisse First Boston Mortgage Securities Corp.
11 Madison Avenue, 4th Floor
New York, New York 10010
Attention: John Graham

JPMorgan Chase Bank
4 New York Plaza
New York, New York 10004

         Re:      Credit Suisse First Boston Mortgage Securities Corp., Home
                  Equity Mortgage Trust 2004-5 Home Equity Mortgage Pass-Through
                  Certificates, Series 2004-5, Class [___]
                  --------------------------------------------------------------

Ladies and Gentlemen:

         In connection with our disposition of the above Certificates we certify
that (a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act"), and are being disposed by us in
a transaction that is exempt from the registration requirements of the Act and
(b) we have not offered or sold any Certificates to, or solicited offers to buy
any Certificates from, any person, or otherwise approached or negotiated with
any person with respect thereto, in a manner that would be deemed, or taken any
other action which would result in, a violation of Section 5 of the Act.

                                                    Very truly yours,

                                                    ____________________________
                                                    Print Name of Transferor

                                                    By: ________________________
                                                    Authorized Officer

                                      J-1

<PAGE>

                                    EXHIBIT K

                    FORM OF INVESTMENT LETTER (NON-RULE 144A)

__________, 200__

Credit Suisse First Boston Mortgage Securities Corp.
11 Madison Avenue, 4th Floor
New York, New York 10010
Attention: John Graham

JPMorgan Chase Bank
4 New York Plaza
New York, New York 10004

         Re:      Credit Suisse First Boston Mortgage Securities Corp., Home
                  Equity Mortgage Trust 2004-5 Home Equity Mortgage Pass-Through
                  Certificates, Series 2004-5, Class [___]
                  --------------------------------------------------------------

Ladies and Gentlemen:

         In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we are an
insitutional "accredited investor," as defined in Regulation D under the Act,
and have such knowledge and experience in financial and business matters that we
are capable of evaluating the merits and risks of investments in the
Certificates, (c) we have had the opportunity to ask questions of and receive
answers from the Depositor concerning the purchase of the Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Certificates, (d) we are not an employee benefit plan
that is subject to the Employee Retirement Income Security Act of 1974, as
amended, or a plan or arrangement that is subject to Section 4975 of the
Internal Revenue Code of 1986, as amended, nor are we acting on behalf of any
such plan or arrangement nor are we using the assets of any such plan or
arrangement to effect such or we have provided the opinion letter set forth in
section 5.02 of the Pooling and Servicing Agreement, (f) we are acquiring the
Certificates for investment for our own account and not with a view to any
distribution of such Certificates (but without prejudice to our right at all
times to sell or otherwise dispose of the Certificates in accordance with clause
(h) below), (g) we have not offered or sold any Certificates to, or solicited
offers to buy any Certificates from, any person, or otherwise approached or
negotiated with any person with respect thereto, or taken any other action which
would result in a violation of Section 5 of the Act, and (h) we will not sell,
transfer or otherwise dispose of any Certificates unless (1) such sale, transfer
or other disposition is made pursuant to an effective registration statement
under the Act or is exempt from such registration requirements, and if
requested, we will at our expense provide an opinion of counsel satisfactory to
the addressees of this Certificate that such sale, transfer or other disposition
may be made pursuant to an exemption from the Act, (2) the purchaser or
transferee of such Certificate has executed and delivered to you a certificate
to substantially the same effect as this certificate, and (3) the

                                      K-1

<PAGE>

purchaser or transferee has otherwise complied with any conditions for transfer
set forth in the Pooling and Servicing Agreement.

                                                 Very truly yours,

                                                 _______________________________
                                                 Print Name of Transferee

                                                 By:____________________________
                                                 Authorized Officer

                                      K-2

<PAGE>

                                    EXHIBIT L

                            FORM OF RULE 144A LETTER

____________, 200__
Credit Suisse First Boston Mortgage Securities Corp.
11 Madison Avenue, 4th Floor
New York, New York 10010
Attention: John Graham

JPMorgan Chase Bank
4 New York Plaza
New York, New York 10004

         Re:      Credit Suisse First Boston Mortgage Securities Corp., Home
                  Equity Mortgage Trust 2004-5 Home Equity Mortgage Pass-Through
                  Certificates, Series 2004-5, Class [___]
                  --------------------------------------------------------------

Ladies and Gentlemen:

         In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) we are not an employee benefit plan that is
subject to the Employee Retirement Income Security Act of 1974, as amended, or a
plan or arrangement that is subject to Section 4975 of the Internal Revenue Code
of 1986, as amended, nor are we acting on behalf of any such plan or arrangement
nor using the assets of any such plan or arrangement to effect such acquisition,
(e) we have not, nor has anyone acting on our behalf offered, transferred,
pledged, sold or otherwise disposed of the Certificates, any interest in the
Certificates or any other similar security to, or solicited any offer to buy or
accept a transfer, pledge or other disposition of the Certificates, any interest
in the Certificates or any other similar security from, or otherwise approached
or negotiated with respect to the Certificates, any interest in the Certificates
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 Certificates
under the Act or that would render the disposition of the Certificates a
violation of Section 5 of the Act or require registration pursuant thereto, nor
will act, nor has authorized or will authorize any person to act, in such manner
with respect to the Certificates, (f) we are a "qualified institutional buyer"
as that term is defined in Rule 144A under the Act ("Rule 144A") and have
completed either of the forms of certification to that effect attached hereto as
Annex 1 or Annex 2, (g) we are aware that the sale to us is being made in

                                      L-1

<PAGE>

reliance on Rule 144A, and (h) we are acquiring the Certificates for our own
account or for resale pursuant to Rule 144A and further, understand that such
Certificates may be resold, pledged or transferred only (A) 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 (B) pursuant to another exemption from registration under the Act.

                                                Very truly yours,

                                                ________________________________
                                                Print Name of Transferee

                                                By:_____________________________
                                                Authorized Officer

                                      L-2

<PAGE>

ANNEX 1 TO EXHIBIT L

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

          [For Transferees Other Than Registered Investment Companies]

         The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

         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, as amended ("Rule 144A") because (i) the Buyer owned and/or
invested on a discretionary basis $___________1 in securities (except for the 1
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 of 1986, as
         amended.

         ___ 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 statements, 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, a copy of which is attached hereto.

         ___ Broker-dealer. The Buyer is a dealer registered pursuant to Section
         15 of the Securities Exchange Act of 1934.

         ___ Insurance Company. The Buyer is an insurance company whose primary
         and predominant business activity is the writing of insurance or the
         reinsuring of risks

----------
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.

                                     L-1-1

<PAGE>

         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 Advisor. The Buyer is an investment advisor registered
         under the Investment Advisors Act of 1940.

         ___ Small Business Investment Company. 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. Buyer is a business development
         company as defined in Section 202(a)(22) of the Investment Advisors Act
         of 1940.

         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) securities issued or guaranteed by the U.S. or any instrumentality
thereof, (iv) bank deposit notes and certificates of deposit, (v) loan
participations, (vi) repurchase agreements, (vii) securities owned but subject
to a repurchase agreement and (viii) 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, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. 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, as
amended.

         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.

                                     L-1-2

<PAGE>

         6. Until the date of purchase of the Rule 144A Securities, 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 the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                           ____________________________________
                                           Print Name of Buyer

                                           By:_________________________________
                                           Name:
                                           Title:

                                           Date:_______________________________

                                     L-1-3

<PAGE>

ANNEX 2 TO EXHIBIT L

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

           [For Transferees That are Registered Investment Companies]

         The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

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, as amended ("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, as amended 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,
         except (i) where the Buyer or the Buyer's Family of Investment
         Companies reports its securities holdings in its financial statements
         on the basis of their market value, and (ii) no current information
         with respect to the cost of those securities has been published. If
         clause (ii) in the preceding sentence applies, the securities may be
         valued at market.

         ___ 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) securities issued or guaranteed by
         the U.S. or any instrumentality thereof, (iii) bank deposit notes and
         certificates of deposit, (iv) loan participations, (v) repurchase

                                     L-2-1

<PAGE>

         agreements, (vi) securities owned but subject to a repurchase agreement
         and (vii) currency, interest rate and commodity swaps.

5.       The Buyer is familiar with Rule 144A and understands that the parties
         listed in the Rule 144A Transferee Certificate to which this
         certification relates are relying and will continue to rely on the
         statements made 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.       Until the date of purchase of the Certificates, the undersigned will
         notify the parties listed in the Rule 144A Transferee Certificate to
         which this certification relates of any changes in the information and
         conclusions herein. Until such notice is given, the Buyer's purchase of
         the Certificates will constitute a reaffirmation of this certification
         by the undersigned as of the date of such purchase.

                                             ___________________________________
                                              Print Name of Buyer or Adviser

                                             By:________________________________
                                             Name:
                                             Title:

                                             IF AN ADVISER:

                                             ___________________________________
                                             Print Name of Buyer

                                             Date:______________________________

                                     L-2-2

<PAGE>

                                    EXHIBIT M

                               REQUEST FOR RELEASE
                                  (for Trustee)

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                        Home Equity Mortgage Trust 2004-5
          Home Equity Mortgage Pass-Through Certificates, Series 2004-5

Loan Information
----------------

Name of Mortgagor:                          ____________________________________

Servicer
Loan No.:                                   ____________________________________

Trustee
-------

Name:

Address:                                    ____________________________________
                                            ____________________________________
                                            ____________________________________

Trustee
Mortgage File No.:

         The undersigned Servicer hereby acknowledges that it has received from
LaSalle Bank National Association, as Custodian for the Holders of Mortgage
Pass-Through Certificates, of the above-referenced Series, the documents
referred to below (the "Documents"). All capitalized terms not otherwise defined
in this Request for Release shall have the meanings given them in the Pooling
and Servicing Agreement (the "Pooling and Servicing Agreement") relating to the
above-referenced Series among Credit Suisse First Boston Mortgage Securities
Corp. as depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire
Credit Corporation as servicer ("Wilshire") and JPMorgan Chase Bank as trustee
(the "Trustee").

( )      Mortgage Note dated _____________________, _______, in the original
         principal sum of $___________________, made by ____________________.
         payable to, or endorsed to the order of, the Trustee.

( )      Mortgage recorded on ________________ as instrument no. ______________
         in the County Recorder's Office of the County of ___________________,
         State of ___________ in book/reel/docket _________________ of official
         records at page/image _____________.

( )      Deed of Trust recorded on _____________ as instrument no.
         ______________ in the County Recorder's Office of the County of
         _______________, State of ______________

                                      M-1

<PAGE>

         in book/reel/docket _____________________ of official records at
         page/image _________.

( )      Assignment of Mortgage or Deed of Trust to the Trustee, recorded on
         _________ as instrument no. ______________ in the County Recorder's
         Office of the County of ______, State of ________________ in
         book/reel/docket _______________ of official records at page/image
         _______________.

( )      Other documents, including any amendments, assignments or other
         assumptions of the Mortgage Note or Mortgage.

         ( ) ___________________________________________________________________

         ( ) ___________________________________________________________________

         ( ) ___________________________________________________________________

         ( ) ___________________________________________________________________

         The undersigned Servicer hereby acknowledges and agrees as follows:

                  (1) Such Servicer shall hold and retain possession of the
                  Documents in trust for the benefit of the Trustee, solely for
                  the purposes provided in the Agreement.

                  (2) Such Servicer shall not cause or knowingly permit the
                  Documents to become subject to, or encumbered by, any claim,
                  liens, security interest, charges, writs of attachment or
                  other impositions nor shall the Servicer, if applicable,
                  assert or seek to assert any claims or rights of setoff to or
                  against the Documents or any proceeds thereof.

                  (3) Such Servicer shall return each and every Document
                  previously requested from the Mortgage File to the Custodian
                  when the need therefor no longer exists, unless the Mortgage
                  Loan relating to the Documents has been liquidated and the
                  proceeds thereof have been remitted to the Certificate Account
                  and except as expressly provided in the Agreement.

                  (4) The Documents and any proceeds thereof, including any
                  proceeds of proceeds, coming into the possession or control of
                  such Servicer shall at all times be earmarked for the account
                  of the Custodian, and such Servicer shall keep the Documents
                  and any proceeds separate and distinct from all other property
                  in such Servicer's possession, custody or control.

                                                   [Servicer]

                                                   By__________________________
                                                   Its_________________________

Date: ____________, 20__

                                      M-2

<PAGE>

                                    EXHIBIT N

                      FORM OF SUBSEQUENT TRANSFER AGREEMENT

         THIS SUBSEQUENT TRANSFER AGREEMENT, dated as of _________ ___, 2004
(this "Subsequent Transfer Agreement"), among CREDIT SUISSE FIRST BOSTON
MORTGAGE SECURITIES CORP., a Delaware corporation, as depositor (the
"Depositor"), DLJ MORTGAGE CAPITAL, INC., a Delaware corporation, in its
capacity as seller under the Pooling and Servicing Agreement referred to below
(the "Seller"), WILSHIRE CREDIT CORPORATION, as servicer ("Wilshire" or the
"Servicer") and JPMORGAN CHASE BANK, a national banking association, as trustee
(the "Trustee");

         WHEREAS, the parties hereto are also among the parties to the Pooling
and Servicing Agreement among Credit Suisse First Boston Mortgage Securities
Corp., as depositor, Wilshire Credit Corporation, as servicer, DLJ Mortgage
Capital, Inc., as seller and JPMorgan Chase Bank, as trustee, dated as of August
1, 2004 (the "Pooling and Servicing Agreement"), in relation to the Home Equity
Mortgage Pass-Through Certificates, Series 2004-5;

         WHEREAS, Sections 2.01(f) of the Pooling and Servicing Agreement
provides for the parties hereto to enter into this Subsequent Transfer Agreement
in accordance with the terms and conditions of the Pooling and Servicing
Agreement;

         NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration the receipt and adequacy of which are hereby acknowledged
the parties hereto agree as follows:

         (i) The "Subsequent Transfer Date" with respect to this Subsequent
Transfer Agreement shall be ____________, 200__.

         (ii) The "Aggregate Subsequent Purchase Amount" with respect to this
Subsequent Transfer Agreement shall be $____________, provided, however, that
such amount shall not exceed the amount on deposit in the Pre-Funding Account.

         (iii) The Subsequent Mortgage Loans conveyed on the Subsequent Transfer
Date shall satisfy the pool characteristics for the Trust Fund identified in
Section 2.01(f) of the Pooling and Servicing Agreement.

         (iv) In case any provision of this Subsequent Transfer Agreement shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions or obligations shall not in any way be affected or
impaired thereby.

         (v) In the event of any conflict between the provisions of this
Subsequent Transfer Agreement and the Pooling and Servicing Agreement, the
provisions of the Pooling and Servicing Agreement shall prevail. Capitalized
terms used herein and not otherwise defined have the meanings in the Pooling and
Servicing Agreement.

         (vi) The Seller hereby sells, transfers, assigns, sets over and
otherwise conveys to the Trustee for the benefit of the Certificateholders,
without recourse, all right title and interest in the

                                      N-1

<PAGE>

Subsequent Mortgage Loans identified in Schedule A, including all interest and
principal due on or with respect to such Subsequent Mortgage Loans on or after
the Subsequent Cut-off Date and all interest and principal payments on such
Subsequent Mortgage Loans received prior to the Subsequent Cut-off Date in
respect of installments of interest and principal due thereafter, but not
including principal and interest due on such Subsequent Mortgage Loans prior to
the Subsequent Cut-off Date, any insurance policies in respect of such
Subsequent Mortgage Loans and all proceeds of any of the foregoing.

         (vii) This Subsequent Transfer Agreement shall be governed by, and
shall be construed and enforced in accordance with the laws of the State of New
York.

         (viii) The Subsequent Transfer Agreement may be executed in one or more
counterparts, each of which so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument.

                                      N-2

<PAGE>

                                   EXHIBIT O-1

                    FORM OF COLLECTION ACCOUNT CERTIFICATION

                           [                   ], 20__

         [Servicer's name] hereby certifies that it has established the account
described below as a Collection Account pursuant to Section 3.05 of the Pooling
and Servicing Agreement, dated as of October 1, 2004, among Credit Suisse First
Boston Mortgage Securities Corp. as depositor, DLJ Mortgage Capital, Inc. as
seller ("DLJMC"), Wilshire Credit Corporation as servicer ("Wilshire"), and
JPMorgan Chase Bank as trustee (the "Trustee").

Title of Account:          [Servicer's Name], in trust for the Holders of Credit
                           Suisse First Boston Mortgage Securities Corp., Home
                           Equity Mortgage Pass-Through Certificates, Series
                           2004-5.

Account Number: ______________

Address of officer or branch of the Company at which Account is maintained:

                           _________________________
                           _________________________
                           _________________________

                           Servicer's Name], AS SERVICER

                           By:__________________________

                           Name:________________________

                           Title:_______________________

                                     O-1-1

<PAGE>

                                   EXHIBIT O-2

                   FORM OF COLLECTION ACCOUNT LETTER AGREEMENT

                            [              ], 20__

To:      ___________________
         ___________________
         ___________________
         (the "Depository")

         As Servicer under the Pooling and Servicing Agreement, dated as of
August 1, 2004, among Credit Suisse First Boston Mortgage Securities Corp. as
depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as servicer ("Wilshire") and JPMorgan Chase Bank as trustee (the
"Trustee") (the "Agreement"), we hereby authorize and request you to establish
an account, as a Collection Account pursuant to Section 3.05 of the Agreement,
to be designated as "[Servicer's Name], in trust for the Holders of Credit
Suisse First Boston Mortgage Securities Corp., Home Equity Mortgage Pass-Through
Certificates, Series 2004-5." 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.

                                             [Servicer's Name], AS SERVICER

                                             By:____________________________

                                             Name:__________________________

                                             Title:_________________________

                                             Date:__________________________

                                     O-2-1

<PAGE>

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. The full amount deposited at any time in the account will be
insured up to applicable limits by the Federal Deposit Insurance Corporation
through the Bank Insurance Fund ("BIF") or the Savings Association Insurance
Fund ("SAIF").

                                                _______________________________
                                                Depository

                                                By:____________________________

                                                Name:__________________________

                                                Title:_________________________

                                                Date:__________________________

                                     O-2-2

<PAGE>

                                   EXHIBIT P-1

                      FORM OF ESCROW ACCOUNT CERTIFICATION

                                    [ ], 20__

         [Servicer's Name] hereby certifies that it has established the account
described below as an Escrow Account pursuant to Section 3.06 of the Pooling and
Servicing Agreement, dated as of October 1, 2004, among Credit Suisse First
Boston Mortgage Securities Corp. as depositor, DLJ Mortgage Capital, Inc. as
seller ("DLJMC"), Wilshire Credit Corporation as servicer ("Wilshire") and
JPMorgan Chase Bank as trustee (the "Trustee").

Title of Account:          "[Servicer's Name], in trust for Credit Suisse First
                           Boston Mortgage Securities Corp., Home Equity
                           Mortgage Trust 2004-5, Home Equity Mortgage
                           Pass-Through Certificates, Series 2004-5 and various
                           mortgagors"

Account Number:            _____________________________

Address of officer or branch of the Company at which Account is maintained:

                           ________________________
                           ________________________
                           ________________________

                           [Servicer's Name], AS SERVICER

                           By:_____________________

                           Name:___________________

                           Title:__________________

                                     P-1-1

<PAGE>

                                   EXHIBIT P-2

                     FORM OF ESCROW ACCOUNT LETTER AGREEMENT

                             [             ], 20__

To:      _________________
         _________________
         _________________
         (the "Depository")

         As Servicer under the Pooling and Servicing Agreement, dated as of
October 1, 2004, among Credit Suisse First Boston Mortgage Securities Corp. as
depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as servicer ("Wilshire") and JPMorgan Chase Bank as trustee (the
"Trustee") (the "Agreement"), we hereby authorize and request you to establish
an account, as an Escrow Account pursuant to Section 3.06 of the Agreement, to
be designated as "Credit Suisse First Boston Mortgage Securities Corp., Home
Equity Mortgage Trust 2004-5, Home Equity Mortgage Pass-Through Certificates,
Series 2004-5". 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.

[SERVICER'S NAME], AS SERVICER

By:________________________

Name:______________________

Title:_____________________

Date:______________________

                                     P-2-1

<PAGE>

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. The full amount deposited at any time in the account
will be insured up to applicable limits by the Federal Deposit Insurance
Corporation through the Bank Insurance Fund ("BIF") or the Savings Association
Insurance Fund ("SAIF").

_____________________
Depository

By:________________________

Name:______________________

Title:_____________________

Date:______________________

                                     P-2-2

<PAGE>

                                    EXHIBIT Q

                                   [RESERVED]

                                      Q-1

<PAGE>

                                    EXHIBIT R

                           FORM OF CUSTODIAL AGREEMENT

                            (Available Upon Request)

                                      R-1

<PAGE>

                                    EXHIBIT S

                                   [Reserved]

                                      S-1

<PAGE>

                                    EXHIBIT T

                                   [RESERVED]

                                      T-1

<PAGE>

                                    EXHIBIT U

                          CHARGED OFF LOAN DATA REPORT
                            (Available Upon Request)

                                      U-1

<PAGE>

                                    EXHIBIT V
                 FORM OF MONTHLY STATEMENT TO CERTIFICATEHOLDERS

         (i) with respect to each Class of Certificates which are not Notional
Amount Certificates and, unless otherwise stated, the related Distribution Date,

                  a. the initial Class Principal Balance of such Class as of the
Closing Date;

                  b. the Class Principal Balance of such Class before giving
effect to the distribution of principal and interest;

                  c. the amount of the related distribution on such Class
allocable to interest;

                  d. the amount of the related distribution on such Class
allocable to principal;

                  e. the sum of the principal and interest payable to such
Class;

                  f. the Realized Loss allocable to such Class;

                  g. the Carryforward Interest allocable to such Class;

                  h. the Class Principal Balance of such Class after giving
effect to the distribution of principal and interest;

                  i. the Pass-Through Rate for such Class;

                  j. [reserved];

                  k. any shortfall in principal allocable to such Class, if such
amount is greater than zero; and

                  l. any shortfall in interest allocable to such Class, if such
amount is greater than zero.

         (ii) with respect to each Class of Certificates which are Notional
Amount Certificates and, unless otherwise stated, the related Distribution Date,

                  a. the Notional Amount of such Class as of the Cut-off Date;

                  b. the Notional Amount of such Class before giving effect to
the distribution of interest;

                  c. the amount of the related distribution on such Class
allocable to interest;

                  d. the amount of the related distribution on such Class
allocable to principal;

                  e. the sum of the principal and interest payable to such
class;

                  f. the Realized Loss allocable to such Class;

                                      V-1

<PAGE>

                  g. the Deferred Interest allocable to such Class;

                  h. the Notional Amount of such Class after giving effect to
the distribution of interest;

                  i. the Pass-Through Rate for such Class; and

                  j. [reserved].

         (iii) with respect to a $1000 factor of the Initial Class Principal
Balance of each Class of Certificates which are not Notional Amount Certificates
and the related Distribution Date,

                  a. the CUSIP number assigned to such Class;

                  b. the Class Principal Balance of such Class factor prior to
giving effect to the distribution of principal and interest;

                  c. the amount of the related distribution allocable to
interest on such Class factor;

                  d. the amount of the related distribution allocable to
principal on such Class factor;

                  e. the sum of the principal and interest payable to such Class
factor; and

                  f. the Class Principal Balance of such Class factor after
giving effect to the distribution of principal and interest.

         (iv) with respect to a $1000 factor of the Initial Class Principal
Balance of each Class of Certificates which are Notional Amount Certificates and
the related Distribution Date,

                  a. the CUSIP number assigned to such Class;

                  b. the Notional Amount of such Class factor prior to giving
effect to the distribution of interest;

                  c. the amount of the related distribution allocable to
interest on such Class factor;

                  d. the amount of the related distribution allocable to
principal on such Class factor;

                  e. the sum of the principal and interest payable to such Class
factor; and

                  f. the Notional Amount of such Class factor after giving
effect to the distribution of interest.

         (v) with respect to the related Distribution Date,

                  a. the Principal Payment Amount or Principal Remittance
Amount;

                                      V-2
<PAGE>

                  b. the amount of Curtailments;

                  c. the amount of Curtailment interest adjustments;

                  d. the Scheduled Payment of principal;

                  e. the amount of Principal Prepayments;

                  f. the amount of principal as a result of repurchased Mortgage
Loans;

                  g. the Substitution Adjustment Amount;

                  h. the aggregate amount of scheduled interest prior to
reduction for fees;

                  i. the amount of Net Recoveries;

                  j. the amount of reimbursements of Nonrecoverable Advances
previously made;

                  k. the amount of recovery of reimbursements previously deemed
nonrecoverable;

                  l. the amount of net Liquidation Proceeds;

                  m. the amount of Insurance Proceeds;

                  n. the amount of any other distributions allocable to
principal;

                  o. the number of Mortgage Loans as of the first day of the
related Collection Period;

                  p. the aggregate Stated Principal Balance of the Mortgage
Loans as of the first day of the related Collection Period;

                  q. the number of Mortgage Loans as of the last day of the
related Collection Period;

                  r. the aggregate Stated Principal Balance of the Mortgage
Loans as of the last day of the related Collection Period;

                  s. the sum of the Servicing Fee, the Credit Risk Manager Fee
and the Trustee Fee ;

                  t. the amount of current Advances ;

                  u. the amount of outstanding Advances ;

                  v. the number and aggregate principal amounts of Mortgage
Loans delinquent (1) 31 to 60 days, (2) 61 to 90 days and (3) 91 days or more,
including delinquent bankrupt Mortgage Loans but excluding Mortgage Loans in
foreclosure and REO Property;

                                      V-3
<PAGE>

                  w. the number and aggregate principal amounts of Mortgage
Loans that are currently in bankruptcy, but not delinquent;

                  x. the number and aggregate principal amounts of Mortgage
Loans that are in foreclosure;

                  y. the Delinquency Rate, Rolling Three Month Delinquency Rate,
the Senior Enhancement Percentage and whether a Trigger Event is in effect ;

                  z. the number and aggregate principal amount of any REO
Properties as of the close of business on the Determination Date preceding such
Distribution Date;

                  aa. current Realized Losses;

                  bb. Cumulative Net Realized Losses and whether a Cumulative
Loss Event is occurring;

                  cc. the weighted average term to maturity of the Mortgage
Loans as of the close of business on the last day of the calendar month
preceding the related Distribution Date;

                  dd. the number of Mortgage Loans that have Prepayment
Penalties and for which prepayments were made during the related Collection
Period, as applicable;

                  ee. the aggregate principal balance of Mortgage Loans that
have Prepayment Penalties and for which prepayments were made during the related
Collection Period, as applicable;

                  ff. the aggregate amount of Prepayment Penalties collected
during the related Collection Period, as applicable;

                  gg. [reserved];

                  hh. The amount of any funds remaining in the Pre-Funding
Account as of such Distribution Date;

                  ii. the weighted average Net Mortgage Rate;

                  jj. the Net Excess Spread; and

                  kk. [reserved].

         (vi) with respect to the related Distribution Date,

                  a. the Targeted Overcollateralization Amount;

                  b. the Overcollateralization Amount;

                  c. the amount, if any, by which the Targeted
Overcollateralization Amount exceeds the Overcollateralization Amount;

                                      V-4
<PAGE>

                  d. the Overcollateralization Release Amount;

                  e. the Monthly Excess Interest; and

                  f. the amount of any payment to the Class X-1 Certificates.

                                      V-5
<PAGE>

                                    EXHIBIT W

                         FORM OF DEPOSITOR CERTIFICATION

               Re:         Credit Suisse First Boston Mortgage Securities Corp.
                           Home Equity Mortgage Trust 2004-5

         I, __________________________, certify that:

1. I have reviewed this annual report on Form 10-K, and all reports on Form 8-K
containing distribution and servicing reports filed in respect of periods
included in the year covered by this annual report, of Home Equity Mortgage
Trust 2004-5 (the "Trust");

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 information required to be prepared
by the Trustee based upon the servicing information required to be provided by
each Servicer under the Pooling and Servicing Agreement is included in these
reports;

4. Based on my knowledge and upon the annual compliance statements included in
the report and required to be delivered to the Trustee in accordance with the
terms of the Pooling and Servicing Agreement and based upon the review required
under the Pooling and Servicing Agreement, and except as disclosed in the
report, each Servicer has fulfilled its obligations under the Pooling and
Servicing Agreement; and

5. The reports disclose all significant deficiencies relating to each Servicer's
compliance with the minimum servicing standards based, in each case, 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 standard as set forth in the Pooling and Servicing Agreement, that is
included in these reports.

         In giving the certifications above, I have reasonably relied on the
information provided to me by the following unaffiliated parties: each Servicer
and the Trustee.

         Capitalized terms used but not defined herein have the meanings
ascribed to them in the Pooling and Servicing Agreement, dated October 1, 2004
(the "Pooling and Servicing Agreement"), among Credit Suisse First Boston
Mortgage Securities Corp., as depositor (the "Depositor"), DLJ Mortgage Capital,
Inc., as seller, Wilshire Credit Corporation, as servicer ("Wilshire") and
JPMorgan Chase Bank, as trustee (the "Trustee").

                                             ___________________________________
                                             [Name]
                                             [Title]
                                             [Date]

                                      W-1

<PAGE>

                                    EXHIBIT X

                          FORM OF TRUSTEE CERTIFICATION

         Re:      Credit Suisse First Boston Mortgage Securities Corp.
                  Home Equity Mortgage Trust 2004-5

         JPMorgan Chase Bank (the "Trustee") hereby certifies to Credit Suisse
First Boston Mortgage Securities Corp. (the "Depositor"), and each Person, if
any, who "controls" the Depositor within the meaning of the Securities Act of
1933, as amended, and its officers, directors and affiliates, and with the
knowledge and intent that they will rely upon this certification, that:

1. The Trustee has 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
Depositor relating to the above-referenced trust;

2. Based on the Trustee's knowledge, and assuming the accuracy and completeness
of the information supplied to the Trustee by each Servicer, the distribution
information in the distribution reports contained in all reports on Form 8-K
included in the year covered by the annual report on Form 10-K for fiscal year
[_____], 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 required by the
Pooling and Servicing Agreement to be included therein and 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 the Trustee's knowledge, the distribution information required to be
provided by the Trustee under the Pooling and Servicing Agreement is included in
these reports.

         Capitalized terms used but not defined herein have the meanings
ascribed to them in the Pooling and Servicing Agreement, dated October 1, 2004
(the "Pooling and Servicing Agreement"), among Credit Suisse First Boston
Mortgage Securities Corp., as depositor (the "Depositor"), DLJ Mortgage Capital,
Inc., as seller, Wilshire Credit Corporation, as servicer ("Wilshire") and
JPMorgan Chase Bank, as trustee (the "Trustee").

                                                JPMORGAN CHASE BANK,
                                                as Trustee

                                                By:_________________________
                                                [Name]
                                                [Title]
                                                [Date]

                                      X-1

<PAGE>

                                    EXHIBIT Y

                           FORM SERVICER CERTIFICATION

         Re:      Credit Suisse First Boston Mortgage Securities Corp.
                  Home Equity Mortgage Trust 2004-5

         I, ___________________________, a duly elected and acting officer of
[__________________] (the "Servicer"), certify pursuant to Section 8.12(d) of
the Pooling and Servicing Agreement to the Depositor, the Trustee and each
Person, if any, who "controls" the Depositor or the Trustee within the meaning
of the Securities Act of 1933, as amended, and their respective officers and
directors, with respect to the calendar year immediately preceding the date of
this Certificate (the "Relevant Year"), as follows":

1. For purposes of this Certificate, "Relevant Information" means the
information in the certificate provided pursuant to Section 3.16 of the Pooling
and Servicing Agreement (the "Annual Compliance Certificate") for the Relevant
Year and the information in all servicing reports required pursuant to the
Pooling and Servicing Agreement to be provided by the Servicer to the Trustee
during the Relevant Year (as such information is amended or corrected in writing
and delivered to the Trustee). Based on my knowledge, the Relevant Information,
taken as a whole, does not contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein which is necessary
to make the statements made therein, in light of the circumstances under which
such statements were made, not misleading as of the last day of the Relevant
Year;

2. The Relevant Information required to be provided to the Trustee under the
Pooling and Servicing Agreement has been provided to the Trustee;

3. I am responsible for reviewing the activities performed by the Servicer under
the Pooling and Servicing Agreement during the Relevant Year. Based upon the
review required under the Pooling and Servicing Agreement and except as
disclosed in the Annual Compliance Certificate or the accountants' statement
provided pursuant to Section 3.17 of the Pooling and Servicing Agreement, to the
best of my knowledge, the Servicer has fulfilled its obligations under the
Pooling and Servicing Agreement throughout the Relevant Year.

         Capitalized terms used but not defined herein have the meanings
ascribed to them in the Pooling and Servicing Agreement, dated October 1, 2004
(the "Pooling and Servicing Agreement"), among Credit Suisse First Boston
Mortgage Securities Corp., as depositor (the "Depositor"), DLJ Mortgage Capital,
Inc., as seller, Wilshire Credit Corporation, as servicer ("Wilshire") and
JPMorgan Chase Bank, as trustee (the "Trustee").

                                              [                               ],
                                              as Servicer
                                              -----------

                                              By:_______________________________
                                             [Name]
                                             [Title]

                                      Y-1

<PAGE>

                                    EXHIBIT Z

                INFORMATION TO BE PROVIDED BY SERVICER TO TRUSTEE

         The following information with respect to each Mortgage Loan will be
e-mailed by each Servicer to the Trustee in accordance with Section 4.10:

Servicer loan number
Trust loan number (if applicable)
Scheduled net interest
Scheduled principal
Curtailment applied
Curtailment adjustment
Mortgage Rate
Servicing Fee Rate
P&I payment
Beginning scheduled balance
Ending scheduled balance
Ending actual principal balance
Due Date
Prepayment in full principal
Prepayment in full net interest
Prepayment in full penalty
Delinquencies:
         1-30
         31-60
         61-90
         90+
Foreclosures
REO Properties
Loss amounts and loss types

                                      Z-1

<PAGE>

                                   EXHIBIT AA

                        FORM OF LIMITED POWER OF ATTORNEY

                            LIMITED POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that JPMorgan Chase Bank, a New York banking
corporation, having a place of business at 4 New York Plaza, 6th Floor, New
York, N.Y. 10004, as Trustee (and in no personal or other representative
capacity) under the Pooling and Servicing Agreement, dated as of October 1, 2004
(as amended, restated, supplemented or otherwise modified from time to time, the
"Agreement"; capitalized terms not defined herein have the definitions assigned
to such terms in the Agreement), relating to the Home Equity Mortgage
Pass-Through Certificates, Series 2004-5, hereby appoints [_______________], in
its capacity as a Servicer under the Agreement, as the Trustee's true and lawful
Special Attorney-in-Fact, in the Trustee's name, place and stead and for the
Trustee's benefit, but only in its capacity as Trustee aforesaid, to perform all
acts and execute all documents as may be customary, necessary and appropriate to
effectuate the following enumerated transactions in respect of any mortgage,
deed of trust, promissory note or real estate owned from time to time owned
(beneficially or in title, whether the Trustee is named therein as mortgagee or
beneficiary or has become mortgagee or beneficiary by virtue of endorsement,
assignment or other conveyance) or held by or registered to the Trustee
(directly or through custodians or nominees), or in respect of which the Trustee
has a security interest or other lien, all as provided under the applicable
Agreement and only to the extent the respective Trustee has an interest therein
under the Agreement, and in respect of which the Servicer is acting as servicer
pursuant to the Agreement (the "Mortgage Documents").

This appointment shall apply to the following enumerated transactions under the
Agreement only:

         1. The modification or re-recording of any Mortgage Document for the
purpose of correcting it to conform to the original intent of the parties
thereto or to correct title errors discovered after title insurance was issued
and where such modification or re-recording does not adversely affect the lien
under the Mortgage Document as insured.

         2. The subordination of the lien under a Mortgage Document to an
easement in favor of a public utility company or a state or federal agency or
unit with powers of eminent domain including, without limitation, the execution
of partial satisfactions/releases, partial reconveyances and the execution of
requests to trustees to accomplish same.

         3. The conveyance of the properties subject to a Mortgage Document to
the applicable mortgage insurer, or the closing of the title to the property to
be acquired as real estate so owned, or conveyance of title to real estate so
owned.

         4. The completion of loan assumption and modification agreements in
respect of Mortgage Documents.

         5. The full or partial satisfaction/release of a Mortgage Document or
full conveyance upon payment and discharge of all sums secured thereby,
including, without limitation, cancellation of the related note.

                                      AA-1

<PAGE>

         6. The assignment of any Mortgage Document, in connection with the
repurchase of the mortgage loan secured and evidenced thereby.

         7. The full assignment of a Mortgage Document upon payment and
discharge of all sums secured thereby in conjunction with the refinancing
thereof, including, without limitation, the assignment of the related note.

         8. With respect to a Mortgage Document, the foreclosure, the taking of
a deed in lieu of foreclosure, or the completion of judicial or non-judicial
foreclosure or termination, cancellation or rescission of any such foreclosure,
including, without limitation, any and all of the following acts:

         a.       the substitution of trustee(s) serving under a deed of trust,
                  in accordance with state law and the deed of trust;

         b.       the preparation and issuance of statements of breach or
                  non-performance;

         c.       the preparation and filing of notices of default and/or
                  notices of sale;

         d.       the cancellation/rescission of notices of default and/or
                  notices of sale;

         e.       the taking of a deed in lieu of foreclosure; and

         f.       the preparation and execution of such other documents and
                  performance of such other actions as may be necessary under
                  the terms of the Mortgage Document or state law to
                  expeditiously complete said transactions in paragraphs 8(a)
                  through 8(e), above.

         9. Demand, sue for, recover, collection and receive each and every sum
of money, debt, account and interest (which now is, or hereafter shall become
due and payable) belonging to or claimed by the Trustee under the Mortgage
Documents, and to use or take any lawful means for recovery thereof by legal
process or otherwise.

         10. Endorse on behalf of the Trustee all checks, drafts and/or
negotiable instruments made payable to the Trustee in respect of the Mortgage
Documents.

The Trustee gives the Special Attorney-in-Fact full power and authority to
execute such instruments and to do and perform all and every act and thing
necessary and proper to carry into effect the power or powers granted by this
Limited Power of Attorney, subject to the terms and conditions set forth in the
Agreement including the standard of care applicable to Servicer in the
Agreement, and hereby does ratify and confirm what such Special Attorney-in-Fact
shall lawfully do or cause to be done by authority hereof.

                                      AA-2

<PAGE>

IN WITNESS WHEREOF, the Trustee has caused its corporate name and seal to be
hereto signed and affixed and these presents to be acknowledged by its duly
elected and authorized officer this ___ day of ___ , 200_.

                                                 JPMORGAN CHASE BANK, as Trustee

                                                 By:___________________________
                                                 Name:
                                                 Title:

WITNESS:                                         WITNESS:

_______________________________                  _______________________________
Name:                                            Name:
Title:                                           Title:

STATE OF NEW YORK
                                    SS
COUNTY OF NEW YORK

         On ______________, 200_, before me, the undersigned, a Notary Public in
and for said state, personally appeared __________________, personally known to
me to be the person whose name is subscribed to the within instrument and to be
a duly authorized and acting Senior Vice President of JPMorgan Chase Bank, and
such person acknowledged to me that such person executed the within instrument
in such person's authorized capacity as a Senior Vice President of JPMorgan
Chase Bank, and that by such signature on the within instrument the entity upon
behalf of which such person acted executed the instrument.

         WITNESS my hand and official seal.

                                                     ___________________________
                                                     Notary Public

                                      AA-3

<PAGE>

                                   EXHIBIT BB

                             CREDIT INSURANCE POLICY

No. U 57
Renewal of
Policy No.____________________

                             CREDIT INSURANCE POLICY

                                  OLD REPUBLIC
                                INSURANCE COMPANY

                            GREENSBURG, PENNSYLVANIA
                                 A STOCK COMPANY
                        (hereinafter called the Company)

In consideration of the stipulations and provisions hereinafter set forth and of
the premium hereinafter specified, does insure

JP MORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST 2004-5 a
__________________ corporation organized under the laws of NEW YORK ,
hereinafter called the Assured, whose address is NEW YORK, NEW YORK , against
loss (only as herein defined and limited) due to Default by a Borrower from the
Assured in the repayment to the Assured of Loans evidenced by Eligible Notes,
reported to the Company and insured hereunder which were made to finance the
alteration, repair, conversion, improvement or modernization of real property.

This Policy shall be effective from the 1 day of OCTOBER , 200 4 , at 12:01
A.M., at the place of business of the Assured and shall remain in force
continuously until cancelled. The coverage afforded by this Policy shall attach
to a particular loan coincident with the actual disbursement by the Assured of
the Loan during such period.

The Assured shall pay the Company a premium calculated upon the entire term of
the Note at the rate of 1.10 % per annum of the net proceeds (as hereinafter
defined) of any Loan reported for insurance, which premium shall be payable
within 15 days after the close of the month in which the Loan is made or
purchased. In computing the premium, no charge shall be made for a factional
period of a month consisting of 15 days or less and a charge for a full month
shall be made for a fractional period of a month consisting of more than 15
days.

Loans shall be reported to the Company for insurance on the form prescribed by
the Company within 15 days after the close of the month in which the Loan is
made or purchased.

The Company's liability for loss with respect to any Insured Loan or Loans to an
individual Borrower who defaults to the Assured hereunder shall be limited to
five thousand dollars ($5,000.00) unless a higher limit is specifically approved
by the Company and is endorsed hereon. The Company's maximum cumulative
liability for Loss under this Policy is further limited to ten percent (l0%) of
the Aggregate net proceeds of loans insured hereunder made by the Assured during
the 12 month period immediately following the effective date of this Policy and
during each succeeding 12 month period in which this

                                      BB-1

<PAGE>

Policy is in full force and effect. The Company's maximum liability under this
Policy shall in no event exceed $14,984,160 during each such 12 month period.

This Policy is made and accepted subject to the foregoing provisions and
stipulations and those hereinafter stated which are hereby made part of this
Policy, together with such other provisions, stipulations and agreements as may
be added hereto, as provided in this Policy.

IN WITNESS WHEREOF, the Company has duly executed these presents; but this
Policy shall not be valid unless countersigned by a duly authorized
representative of the Company.

Countersigned this        22nd     day of          _____________________________

                 October _________, 2004                               President

OLD REPUBLIC INSURANCE COMPANY
                                                   _____________________________
                                                                       Secretary
By:__________________________________
        Authorized Representative

                                      BB-2

<PAGE>

                           PROVISIONS AND STIPULATIONS

1. DEFINITIONS

a. "Loan" means an advance of funds, or the purchase of an obligation, evidenced
by an Eligible Note, the proceeds of which have been or are to be used for the
alteration, repair, conversion, improvement or modernization of real property
located within the continental limits of the United States of America.
b. "Eligible Note" or "Note" means any written evidence of obligation, including
a note, bond, mortgage or indenture which:
(1) Bears the genuine signature of the Borrower and all other parties to the
instrument, is complete and regular on its face, and is valid and enforceable
against the Borrower; and
(2) Contains an acceleration clause which provides for acceleration of maturity
either automatically or at the option of the holder, in the event of default in
payment of any installment upon the due date thereof; and
(3) Contains payment and maturity requirements meeting the following
specifications: The Note shall be payable in approximately equal monthly
installments, the first of which shall fall due within six months and the last
within sixty months and 32 days from the date of the Note. If the principal
income of the Borrower is derived from a seasonal operation or business, the
Note may be made payable in installments corresponding with the seasonal
variation in Borrower's income shown on his application for credit; provided the
first installment is payable within twelve months of the date of the Note; and
further provided that the sum of installments to be paid in any year subsequent
to the first year shall not be greater than the proportion of the total debt
which is to be paid in the first year; and further provided that a token payment
is due in each off-season month; and
(4) Is for an amount such that the net proceeds, as defined below, of such
note plus the then unpaid net proceeds of any other loans insured by the Company
made by the Assured to the individual Borrower making the note are not in excess
of $5,000.00, except that specified notes for greater amounts may be insured
hereunder upon endorsement of this policy specifically insuring such notes.
c. "Borrower" means one, whether individual, partnership, corporation or other
legal entity, who applies for and receives a Loan, evidence by an Eligible Note,
and whose interest in the real property to be improved is:
(1) A fee title; (2) a life estate; (3) a leasehold estate having a fixed term
expiring after the maturity of the Note; or (4) an equitable interest under a
contract or deed of trust to create an interest in real property of the
character described in (1) (2) or (3). No such person shall be accepted by the
Assured as a Borrower if such person is past due more than fifteen days as to
the payment of an obligation owed the Assured or any obligation insured by the
Company or is past due more then thirty days as to the payment of any other
indebtedness evidenced by a note, bond or contract signed by such person and the
Assured through its usual credit investigation is placed on notice of such fact
or facts, unless other circumstances known to the Assured make a loan to such
person a credit risk acceptable to a prudent lender.
d. "Payment" or "Installment" means a deposit by the Borrower with the Assured
of funds which represent the full or partial repayment of a Loan according to
the terms of the Note evidencing such Loan.

                                      BB-3

<PAGE>

e. "Default" means the failure of the Borrower to make any payment to the
Assured at the time and in the manner and amount specified in the Note
evidencing the Loan.
f. "Date of Default" means the earliest date upon which an installment or
payment was due which was not paid by the Borrower according to the terms of the
Note.
g. "Loss" means the amount payable to the Assured by the Company as provided in
paragraph 5 hereof.
h. "Net Proceeds" means the amount of the loan actually made or the purchase
price of the note, exclusive of finance charges, fees, and other deductions.

2. CONDITIONS PRECEDENT TO RECOVERY

         Prior to making a Loan, the Assured shall obtain a dated credit
application fully executed by the Borrower. The credit application supplemented
by such other information as the Assured deems necessary, must, in the judgment
of the Assured, clearly show the Borrower to be solvent, with reasonable ability
to repay the Loan, and in other respects a reasonable credit risk. If, after the
Loan is made, the Assured discovers any material misstatements in the credit
application, or misuse of the proceeds of the Loan by the Borrower, the Assured
shall promptly report such discovery to the Company.

         The Assured shall exercise due diligence in disbursing proceeds of
loans in effecting collections and shall service its Loans in accordance with
acceptable practices of prudent lending institutions.

         All payments received on account of the Note, except late charges, must
be applied to the maturing installments in their order, except that any sum
received by the Assured in excess of three advanced monthly payments shall be
credited to the final installments in the absence of specific written
instructions from the Borrower to do otherwise.

         Claim may be made after Default provided written demand has been made
on the Borrower for the full unpaid balance of the Note. The Company reserves
the right to require the Assured to reduce the Note to judgment subject to the
limitations of the terms of the Note.

                                      BB-4

<PAGE>

3.       NOTICE OF DEFAULT AND FILING OF CLAIMS FOR LOSS

         Should a Default continue for a period of 90 days, notice thereof must
be filed with the Company monthly thereafter, on the form prescribed by the
Company until the Default is cured or a claim of Loss filed. A claim for Loss
may be filed as to an individual Loan at any time after Default but in no event
later than six months after Default unless the Company shall grant an extension
of the claim period in writing. Claims shall be filed on Proof of Loss forms
provided by the Company, which shall include an assignment of the Assured's
interest in the defaulted Note to the Company or such other person as may be
designated by the Company as assignee.

4.       PAYMENT OF LOSS

         All adjusted claims shall be paid or made good within thirty days after
presentation of satisfactory evidence of Loss to the Company.

5.       LIMIT OF LOSS

         In addition to the limitations heretofore set out, the Company shall be
obligated to pay hereunder only the full unpaid balance of the Note or of the
actual purchase price thereof, whichever is lesser, less the unearned discount
thereon, plus

a. uncollected earned interest to date of Default and interest at the rate of 4%
per annum from the date of Default to the date of presentation of Proof of Loss;
plus

b. uncollected court costs (including fees paid for issuing, serving and filing
summons); plus

c. attorneys' fees actually paid, not exceeding:

         (1) 25 percent of the amount collected by the attorney on the defaulted
Note provided the Assured does not waive its claim against the Borrower for such
fees; plus

         (2) $25.00 or 15 percent of the balance due on the Note, whichever is
the lesser, if a judgment is secured by suit, or $10.00 or 15 percent of the
balance due on the Note, whichever is the lesser, if a judgment is secured by
confession after default; plus

         (3) $50.00 plus 5 percent of the balance due on the Note as an
additional fee where the action is contested and judgment is obtained;

                                      BB-5

<PAGE>

         less any part of the foregoing amounts which the Assured has collected
from others, or which the Assured can collect from a reserve or holdback funds
in its hands.

         6. SUBROGATION

         In the event of any payment under this Policy, the Company shall be
subrogated to all of the Assured's rights of recovery against the Borrower and
any other person or organization liable under the terms of the defaulted Note
and against any reserve or holdback funds in its hands, and the Assured shall
execute and deliver at the request of the Company instruments and papers and do
whatever else is necessary to transfer, assign, and secure such rights. The
Assured shall do nothing after Loss to prejudice such rights, and the execution
by the Assured of a release or waiver of the right to collect the unpaid balance
of a Loan shall equally release the Company from any further obligation under
this Policy as to said Loan, anything in this Policy to the contrary
notwithstanding.

         7. TRANSFER OR PREPAYMENT OF LOANS REPORTED FOR INSURANCE

         All liability under this Policy with respect to any individual loan
shall terminate upon sale or transfer (including without limiting the generality
of application of this section, transfers pursuant to, or resulting from merger
or consolidation of the Assured with any other corporation or company) of such
loan, or the note evidencing same, to any transferee not holding a similar
Policy issued by the Company.

         Such sales or transfers may be made to a transferee holding a similar
Policy issued by the Company only with the prior written approval of the
Company. In the event of such a sale or transfer, the continuing liability of
the Company to the transferee with regard to the loan or loans sold or
transferred shall be ten percent of the aggregate unpaid balance of the net
proceeds of

                                      BB-6

<PAGE>

such loan or loans at the time of transfer or sale, and the aggregate limit of
liability of the Company to the Assured hereunder shall be reduced by an equal
amount.

         In no event will the Company refund any premium to the Assured upon the
sale or transfer of any loan or loans insured hereunder.

         Nothing contained herein shall be construed to prevent the pledging of
such loans, or the notes evidencing the same, as collateral security under a
bona fide loan agreement.

         In the event that the Borrower shall prepay an eligible loan for which
the required premium has been paid by the Assured to the Company, upon receipt
of a report of such prepayment and application for premium refund on the form
prescribed by the Company, the Company shall return to the Assured a premium
refund calculated according to the sum-of-the-digits method, and the aggregate
cumulative liability of the Company hereunder shall be reduced by ten percent of
the original net proceeds of said loan.

         8. REPORTS AND EXAMINATION

         The Company may at any time call upon the Assured for such reports as
it may deem necessary and may inspect the books or the Accounts of the Assured
as they pertain to the Loans reported for insurance hereunder. All Loans
reported to the Company for insurance hereunder shall be identified by methods
satisfactory to the Company on the records of the Assured.

         9. AMENDMENTS

         Notice to any agent or knowledge possessed by any agent or by any other
person shall not effect a waiver or a change in any part of this Policy or estop
the Company from asserting any right under the terms of this policy. The terms
of this Policy may be waived or changed only after written approval of the
Company and by an endorsement signed on behalf of the Company by its President,
Vice President or Secretary and countersigned by a duly authorized
representative of the Company.

                                      BB-7

<PAGE>

         10. MISREPRESENTATION AND FRAUD

         The Policy shall be void if the Assured has concealed or misrepresented
any material fact or circumstance concerning this insurance or the subject
thereof or in case of any fraud, attempted fraud or false swearing by the
Assured touching any matter relating to this insurance or the subject thereof
whether before or after a loss, or if the Assured shall make any claim which is
false or fraudulent either in amount or otherwise.

         11. OTHER INSURANCE

         If at the time of Loss or Default there is any other valid and
collectible insurance which would attach if this insurance had not been
effected, this insurance shall apply only as excess and in no event as
contributing insurance, and then only after all other insurance has been
exhausted.

         12. ASSIGNMENT OF POLICY

         This Policy shall be void if assigned or transferred without the
written consent of this Company, whether such transfer be voluntary or
involuntary.

         13. SUIT AGAINST COMPANY

         No suit, action or proceeding for the recovery of any claim under this
Policy shall be instituted or sustainable in any court of law or equity unless
Proof of Loss has been duly filed with respect thereto, and unless such suit,
action or proceeding be commenced within twelve months next after Default;
provided, however, that if by the laws of the State within which this Policy is
issued such limitation is invalid, then any such claims shall be void unless
such action, suit or proceedings be commenced within the shortest limit of time
permitted by the laws of such State to be fixed herein.

         14. CANCELLATION

         This Policy may be cancelled by the Assured by mailing to the Company
written notice stating when thereafter such cancellation shall be effective.
This Policy may be cancelled by the

                                      BB-8

<PAGE>

Company by mailing to the Assured at the address shown in this Policy or last
known address written notice stating when, not less than five days thereafter,
such cancellation shall be effective. The mailing of notice as aforesaid shall
be sufficient proof of notice and the effective date of cancellation stated in
the notice shall become the end of the policy period. Delivery of such written
notice either by the Assured or by the Company shall be equivalent to mailing.

         Cancellation of this Policy shall not affect the insurance privilege of
the Assured with respect to any loan previously reported for insurance.

         15. CONFORMITY TO STATUTE

         Terms of this Policy which are in conflict with the statutes of the
State wherein this Policy is issued are hereby amended to conform to such
statutes.

                                      BB-9

<PAGE>

                                   ENDORSEMENT
                                   -----------

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.

by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

                         PAYMENT APPLICATION ENDORSEMENT

         The sentence in Paragraph 3, Section 2, of the Provisions and
Stipulations of the policy reading:

All payments received on account of the Note, except late charges, must be
applied to the maturing installments in their order, except that any sum
received by the Assured in excess of three advanced monthly payments shall be
credited to the fatal installments in the absence of specific written
instructions from the Borrower to do otherwise.

         Is hereby amended by deleting the last half of the sentence so that it
reads as follows:

All payments received on account of the Note, except late charges, must be
applied to the maturing installments in their order in the absence of specific
written instructions from the Borrower to do otherwise.

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

                                     BB-10

<PAGE>

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                     BB-11

<PAGE>

                                   ENDORSEMENT
                                   -----------

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.

by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

                  It is understood and agreed that the word "default" in Section
                  13 shall be deleted and replaced with "Proof of Loss has been
                  filed."

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                     BB-12

<PAGE>

                                   ENDORSEMENT
                                   -----------

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.

by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

                  It is understood and agreed that the section sentence of
                  Section 9 shall be amended to read as follows:

"The terms of this Policy may be waived or changed only after written approval
of the Company and by an endorsement signed on behalf of the Company by its
President, Vice President or Secretary and countersigned by a duly authorized
representative of the Company. Such endorsement shall only be effective with
respect to Loans that are reported for insurance after the effective date of
that endorsement."

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                      B-13

<PAGE>

                                   ENDORSEMENT
                                   -----------

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.
by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

         It is hereby understood and agreed that Paragraph 5.a. is amended to
read as follows: "uncollected earned interest to the date of presentation of
Proof of Loss; plus"

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                      B-14

<PAGE>

                                   ENDORSEMENT

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.

by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

         This endorsement is issued in consideration of the Assured's request
for the change in the mode of premium permitted herein. 1. The third paragraph
of the first page of this policy is amended to read as follows:

         The Assured shall pay the Company a monthly premium calculated at a
rate of .110% on the unpaid balance outstanding at the beginning of every month
of any Loan reported for insurance. The premium shall be payable on the twenty
fifth day of every month in which there is an unpaid balance outstanding on a
Loan reported for insurance. The first premium payment shall be due on the date
upon which the Loan is reported for insurance.

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                     BB-15

<PAGE>

                                   ENDORSEMENT
                                   -----------

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.

by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

         This endorsement is issued in consideration of the Assured's request
for the change in the mode of premium permitted herein. 1. Section 7 entitled
"Transfer or Prepayment of Loans Reported for Insurance" is deleted and the
following is substituted therefor:

All liability under this Policy with respect to any individual loan shall
terminate upon sale or transfer (including, without limiting the generality of
application of this section, transfers pursuant to, or resulting from, merger or
consolidation of the Assured with any other corporation or company) of such
loan, or the note evidencing same, to any transferee not holding a similar
policy issued by the Company. In the event of such a sale or transfer, the
aggregate liability of the Company to the Assured hereunder shall be reduced by
ten percent of the original net proceeds of such loan or loans.

Such sales or transfers may be made to a transferee holding a similar Policy
issued by the Company only with the prior written approval of the Company. In
the event of such a sale or transfer, the continuing liability of the Company to
the transferee with regard to the loan or loans sold or transferred shall be ten
percent of the aggregate unpaid balance of the net proceeds of such loan or
loans at the time of transfer or sale, and the aggregate limit of liability of
the Company to the Assured hereunder shall be reduced by an equal amount. In the
event of approved sale or transfer, the Assured shall remain liable for all
monthly premium payments.

Nothing contained herein shall be construed to prevent the pledging of such
loans, or the notes evidencing the same, as collateral security under a bonafide
loan agreement.

2. The second paragraph of Section 14 entitled "Cancellation" is deleted, and
the following is substituted therefor:

Cancellation of this policy shall not affect the insurance coverage on loans
previously reported for insurance, and the Assured shall continue to remit
monthly premium payment with respect to all such loans.

3. All other provisions of the policy shall remain unchanged.

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

                                     BB-16

<PAGE>

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                     BB-17

<PAGE>

                                   ENDORSEMENT
                                   -----------

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.

by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

Notwithstanding any terms to the contrary in the Policy and each endorsement
thereto, Old Republic acknowledges that the duties and obligations of the
Assured under the Policy will be performed by the servicer of the loans and not
by the Assured, other than the duty to pay the premium which shall remain with
the Assured. Old Republic will treat such servicer as the Assured for all such
purposes under the Policy. The Assured shall remain the beneficiary of any
payments made by Old Republic under the Policy.

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                     BB-18

<PAGE>

                                   ENDORSEMENT
                                   -----------

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.

by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

It is understood and agreed that the following wording of the first sentence of
Section 6 "and against any reserve or holdback funds in its hands" is deleted.

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                     BB-19

<PAGE>

                                   ENDORSEMENT
                                   -----------

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.

by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

It is understood and agreed that the term "Loan" in item A under section 1,
Definitions, is hereby amended to mean an advance of funds, evidenced by an
Eligible Note, the proceeds of which have been or are to be used for any
purpose, located within the United States of America.

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                     BB-20

<PAGE>

                                   ENDORSEMENT
                                   -----------

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.

by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

it is understood and agreed that Section 1.c. of the Definitions is deleted and
replaced with "Borrower" means one, whether individual, partnership, corporation
or other legal entity, who applies for and receives a Loan evidenced by an
Eligible Note".

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                     BB-21

<PAGE>

                                   ENDORSEMENT
                                   -----------

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.

by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

It is hereby understood and agreed that Section 2 of the Provisions and
Stipulations of the Policy (CONDITIONS PRECEDENT TO RECOVERY) is amended to
waive the right of the Company to require the Assured to reduce a note to
judgment.

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                     BB-22

<PAGE>

                                   ENDORSEMENT
                                   -----------

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.

by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

It is Understood and agreed that Section 2 of the Provisions and Stipulations of
the Policy (CONDITIONS PRECEDENT TO RECOVERY) is amended to waive the right of
the Company to required the Assured to reduce a note to judgment.

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                     BB-23

<PAGE>

                                   ENDORSEMENT
                                   -----------

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.

by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

                                 LOAN LIMITATION

                             CREDIT INSURANCE POLICY

         The First sentence of the fifth paragraph of the policy is hereby
amended to read as follows:

"The Company's liability for loss with respect to the Insured Loan of any one
borrower shall be limited to Two Hundred Fifty Thousand Dollars ($250,000),
provided such Insured Loan meets all of the qualifications set forth in the
Company's 'Qualifying specifications for Guideline Underwriting' and Company
Sanctioned Guidelines in effect on the date of such Insured Loan, unless a
higher limit has been specifically approved by the Company and endorsed hereon."

                                  EXTENDED TERM

         The first sentence in 1.b.(3) of the provisions and Stipulations of the
policy is hereby amended to read as follows: "Contains payment and maturity
requirements meeting the following specifications: The Note shall be payable,
the first of which shall fall due within six months and the last within 360
months and 32 days from the date of the Note."

                                  ELIGIBLE NOTE

         The sentence in Paragraph 1.b.(4) of the Provisions and Stipulations is
hereby amended to read as follows: "Is for an amount equal to the net proceeds
of such note, as defined below, provided that the net proceeds of such note,
plus the then unpaid net proceeds of any other loans (a) which have been made by
the Assured to the same Borrower and which are insured by the Company do not
exceed Two Hundred Fifty Thousand Dollars ($250,000), and that (b) such note
meets all of the qualifications set forth in the Company's 'Qualifying
Specifications for Guideline Underwriting' in effect on the date of the Loan,
except that notes for greater amounts may be insured hereunder by endorsement to
this policy specifically identifying such notes."

                                      BB-24
<PAGE>

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                      BB-25
<PAGE>

                                   ENDORSEMENT
                                   -----------

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.

by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

It is understood and agreed that in Section 5, the wording starting with:

         "Less any part of the foregoing amounts which the Assured has collected
from others, or which the Assured can collect from a reserve or holdback funds
in its hands" is deleted and replaced with "unless agreed to by the Company"

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                      BB-26

<PAGE>

                                   ENDORSEMENT
                                   -----------

         This endorsement, effective October 1, 2004, forms a part of Policy No.
U 57 issued to JPMORGAN CHASE BANK AS TRUSTEE OF HOME EQUITY MORTGAGE TRUST
2004-5.

by OLD REPUBLIC INSURANCE COMPANY, GREENSBURG, PENNSYLVANIA

It is understood and agreed that Section 4 is deleted in its entirety and is
replaced with:

         "All Losses shall be paid within 30 days after presentation of
satisfactory evidence of Loss to the Company".

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF
THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THE POLICY OR ANY
ENDORSEMENT ATTACHED THERETO, EXCEPT AS HEREIN SET FORTH. THIS ENDORSEMENT SHALL
NOT BE VALID UNTIL COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE
COMPANY.

Attest:
___________________________                         __________________________
        President                                             Secretary

Countersigned at Chicago, Illinois this 26th day of October ______________, 2004

____________________________________________________________________, Authorized
Representative.

                                     BB-27

<PAGE>

                                   SCHEDULE I

                             MORTGAGE LOAN SCHEDULE

                            (Available Upon Request)

                                       I-1

<PAGE>

                                   SCHEDULE II

                     SELLER'S REPRESENTATIONS AND WARRANTIES

         (i) The Seller is a corporation duly organized, validly existing and in
good standing under the laws of the state of its incorporation;

         (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 Trustee, the
Servicer and the Depositor, 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); and

         (vi) there are no actions, litigation, suits or proceedings pending or
to the knowledge of the Seller, 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.

                                      II-1

<PAGE>

                                  SCHEDULE III

                     WILSHIRE REPRESENTATIONS AND WARRANTIES

         (i) Wilshire is a corporation duly organized, validly existing and in
good standing under the laws of the state of its incorporation;

         (ii) Wilshire 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 Wilshire of this Agreement have
been duly authorized by all necessary corporate action on the part of Wilshire;
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 Wilshire or its properties or the
certificate of incorporation or bylaws of Wilshire, except those conflicts,
breaches or defaults which would not reasonably be expected to have a material
adverse effect on Wilshire ability to enter into this Agreement and to
consummate the transactions contemplated hereby;

         (iv) This Agreement has been duly executed and delivered by Wilshire
and, assuming due authorization, execution and delivery by the Trustee, the
Seller and the Depositor, constitutes a valid and binding obligation of Wilshire
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

         (v) There are no actions, litigation, suits or proceedings pending or
to the knowledge of Wilshire, threatened against Wilshire before or by any
court, administrative agency, arbitrator or governmental body (a) with respect
to any of the transactions contemplated by this Agreement or (b) with respect to
any other matter which in the judgment of Wilshire if determined adversely to
Wilshire would reasonably be expected to materially and adversely affect
Wilshire's ability to perform its obligations under this Agreement, other than
as Servicer has previously advised Seller; and Wilshire 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.

                                     III-1

<PAGE>

                                   SCHEDULE IV

          REPRESENTATIONS AND WARRANTIES RELATING TO THE MORTGAGE LOANS

         DLJMC, in its capacity as Seller, hereby makes the representations and
warranties set forth in this Schedule IV to the Depositor and the Trustee, as of
the Closing Date, or the date specified herein, with respect to the Mortgage
Loans identified on Schedule I hereto.

         (i) The Seller or its affiliate is the sole owner of record and holder
of the Mortgage Loan and the indebtedness evidenced by the Mortgage Note.
Immediately prior to the transfer and assignment to the Depositor on the Closing
Date, the Mortgage Loan, including the Mortgage Note and the Mortgage, were not
subject to an assignment or pledge, and the Seller had good and marketable title
to and was the sole owner thereof and had full right to transfer and sell the
Mortgage Loan to the Depositor free and clear of any encumbrance, equity, lien,
pledge, charge, claim or security interest and has the full right and authority
subject to no interest or participation of, or agreement with, any other party,
to sell and assign the Mortgage Loan and following the sale of the Mortgage
Loan, the Depositor will own such Mortgage Loan free and clear of any
encumbrance, equity, participation interest, lien, pledge, charge, claim or
security interest.

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

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

         (iv) The Mortgage Loan complies with all the terms, conditions and
requirements of the originator's underwriting standards in effect at the time of
origination of such Mortgage Loan.

         (v) The information set forth in the Mortgage Loan Schedule, attached
to the Agreement as Schedule I, is complete, true and correct in all material
respects as of the Cut-off Date.

         (vi) With respect to any first lien Mortgage Loan, the related Mortgage
is a valid, subsisting, enforceable and perfected first lien on the Mortgaged
Property and, with respect to any second lien Mortgage Loan, the related
Mortgage is a valid, subsisting, enforceable and perfected second lien on the
Mortgaged Property, and all buildings on the Mortgaged Property and all
installations and mechanical, electrical, plumbing, heating and air conditioning
systems

                                      IV-1
<PAGE>

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

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

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

         (ix) The Mortgage Note and the Mortgage are not subject to any right of
rescission, set-off, counterclaim or defense, including, without limitation, the
defense of usury, nor will the operation of any of the terms of the Mortgage
Note or the Mortgage, or the exercise of any right thereunder, render the
Mortgage Note or Mortgage unenforceable, in whole or in part, or subject to any
right of rescission, set-off, counterclaim or defense, including the defense of
usury, and no such right of rescission, set-off, counterclaim or defense has
been asserted with respect thereto.

         (x) The Mortgaged Property is not subject to any material damage by
waste, fire, earthquake, windstorm, flood or other casualty. At origination of
the Mortgage Loan there was, and there currently is, no proceeding pending for
the total or partial condemnation of the Mortgaged Property.

         (xi) All improvements subject to the Mortgage which were considered in
determining the appraised value of the Mortgaged Property lie wholly within the
boundaries and building restriction lines of the Mortgaged Property (and wholly
within the project with respect to a condominium unit) and no improvements on
adjoining properties encroach upon the Mortgaged

                                      IV-2
<PAGE>

Property except those which are insured against by a title insurance policy and
all improvements on the property comply with all applicable zoning and
subdivision laws and ordinances.

         (xii) Seller has delivered or caused to be delivered to the Trustee or
the Custodian on behalf of the Trustee the original Mortgage bearing evidence
that such instruments have been recorded in the appropriate jurisdiction where
the Mortgaged Property is located as determined by the Seller (or, in lieu of
the original of the Mortgage or the assignment thereof, a duplicate or conformed
copy of the Mortgage or the instrument of assignment, if any, together with a
certificate of receipt from the Seller or the settlement agent who handled the
closing of the Mortgage Loan, certifying that such copy or copies represent true
and correct copy(ies) of the original(s) and that such original(s) have been or
are currently submitted to be recorded in the appropriate governmental recording
office of the jurisdiction where the Mortgaged Property is located) or a
certification or receipt of the recording authority evidencing the same.

         (xiii) The Mortgage File contains each of the documents specified in
Section 2.01(b) of the Agreement.

         (xiv) As of the Closing Date, each Mortgage Loan shall be serviced in
all material respects in accordance with the terms of the Agreement.

         (xv) All buildings or other customarily insured improvements upon the
Mortgaged Property are insured by an insurer acceptable under the FNMA Guides,
against loss by fire, hazards of extended coverage and such other hazards as are
provided for in the FNMA Guides or by FHLMC, as well as all additional
requirements set forth in this Agreement. All such standard hazard policies are
in full force and effect and on the date of origination contained a standard
mortgagee clause naming the Seller and its successors in interest and assigns as
loss payee and such clause is still in effect and all premiums due thereon have
been paid. If at the time of origination, the Mortgage Loan was required to have
flood insurance coverage in accordance with the Flood Disaster Protection Act of
1973, as amended, such Mortgage Loan is covered by a flood insurance policy
meeting the requirements of the current guidelines of the Federal Insurance
Administration which policy conforms to FNMA and FHLMC requirements, as well as
all additional requirements set forth in this Agreement. Such policy was issued
by an insurer acceptable under FNMA or FHLMC guidelines. The Mortgage obligates
the Mortgagor thereunder to maintain all such insurance at the Mortgagor's cost
and expense, and upon the Mortgagor's failure to do so, authorizes the holder of
the Mortgage to maintain such insurance at the Mortgagor's cost and expense and
to seek reimbursement therefor from the Mortgagor.

         (xvi) With respect to each Mortgage Loan that has a Prepayment Penalty
feature, each such Prepayment Penalty is enforceable and, at the time such
Mortgage Loan was originated, each Prepayment Penalty complied with applicable
federal, state and local law, subject to federal preemption where applicable.

         (xvii) As of the Cut-off Date, no Mortgage Loan is (a) a non-performing
loan (i.e. a mortgage loan that is more than 90 days delinquent); (b) a
re-performing loan (i.e. a mortgage loan that was more than 90 days delinquent
within the twelve month period preceding the Cut-off Date but is contractually
current); or (c) a sub-performing loan (i.e. a mortgage loan that is at least 30
days delinquent but subject to a payment plan or agreement pursuant to which the
Mortgagor is contractually current).

                                      IV-3
<PAGE>

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

         (xix) To the knowledge of the Seller, (i) no proceeds from any Mortgage
Loan were used to finance single-premium credit insurance policies, (ii) no
Mortgage Loan originated prior to October 1, 2002 will impose a Prepayment
Penalty for a term in excess of five years and no Mortgage Loan originated on or
after October 1, 2002 will impose a Prepayment Penalty for a term in excess of
three years, (iii) the related Servicer of each Mortgage Loan has fully
furnished, in accordance with the Fair Credit Reporting Act and its implementing
regulations, accurate and complete information on its borrower credit files to
Equifax, Experian and Trans Union Credit Information on a monthly basis, (iv)
the original principal balance of each Mortgage Loan is within Freddie Mac's
dollar amount for conforming one- to four-family mortgage loans and (v) no
Mortgage Loan secured by a Mortgaged Property located in the State of Georgia
was originated on or after October 1, 2002 and before March 7, 2003 and no
Mortgage Loan secured by Mortgaged Property located in the State of Georgia that
was originated on or after March 7, 2003 is a "high cost home loan" as defined
in the Georgia Fair Lending Act (HB 1361), as amended.

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

         (xxi) No Mortgage Loan is classified as (a) a "high cost mortgage loan"
under the Home Ownership and Equity Protection Act of 1994 or (b) a "high cost
home," "covered," "high cost," "high risk home" or "predatory" loan under any
other applicable state, federal or local law (or a similarly classified loan
using different terminology under a law imposing heightened regulatory scrutiny
or additional legal liability for residential mortgage loans having high
interest rates, points and/or fees).

         (xxii) No Mortgage Loan is a High Cost Loan or Covered Loan as such
terms are defined in Version 5.6 Revised; Appendix E of the Standard & Poor's
LEVELS(R) Glossary.

         (xxiii) Each Old Republic Covered Loan is eligible for coverage under
the Credit Insurance Policy as of the Closing Date.

         (xxiv) With respect to any Mortgage Loan originated on or after October
1, 2004, either (a) the related Mortgage and the related Mortgage Note does not
contain a mandatory arbitration clause (that is, a clause that requires the
related Mortgagor to submit to arbitration to resolve any dispute arising out of
or relating in any way to the Mortgage Loan) or (b) the related Mortgage and the
related Mortgage Note contained a mandatory arbitration clause as of the related
origination date and such clause has or will be waived by the originator or an
entity designated by the Seller in writing no later than sixty (60) days after
the related Closing Date which notice included or will include the following
language: "WE ARE HEREBY NOTIFYING YOU THAT THE MANDATORY ARBITRATION CLAUSE OF
YOUR LOAN, REQUIRING THAT YOU SUBMIT TO ARBITRATION TO RESOLVE ANY DISPUTE
ARISING OUT OF OR RELATING IN ANY WAY TO YOUR MORTGAGE LOAN, IS IMMEDIATELY NULL

                                      IV-4
<PAGE>

AND VOID. YOU ARE FREE TO CHOOSE TO EXERCISE ANY OF YOUR RIGHTS OR ENFORCE ANY
REMEDIES UNDER YOUR MORTGAGE LOAN THROUGH THE COURT SYSTEM." A copy of the
written notice referred to in the immediately preceding sentence, if applicable,
shall be retained in the related Mortgage File.

                                      IV-5================================================================================

                       CITIGROUP MORTGAGE LOAN TRUST INC.,
                                    Depositor

              CREDIT-BASED ASSET SERVICING AND SECURITIZATION LLC,
                                     Seller

                            LITTON LOAN SERVICING LP,
                                    Servicer

                                       and

                         U.S. BANK NATIONAL ASSOCIATION,
                                     Trustee

                         POOLING AND SERVICING AGREEMENT

                           Dated as of October 1, 2004

                                 2004-CB7 Trust

         C-BASS Mortgage Loan Asset-Backed Certificates, Series 2004-CB7

================================================================================

<PAGE>

<TABLE>
<CAPTION>
                                TABLE OF CONTENTS

                                                                                                               Page

                                    ARTICLE I

                                   DEFINITIONS

<S>                                                                                                            <C>
Section 1.01      Defined Terms...................................................................................8
Section 1.02      Accounting.....................................................................................58
Section 1.03      Allocation of Certain Interest Shortfalls......................................................58

                                   ARTICLE II

         CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES

Section 2.01      Conveyance of Mortgage Loans...................................................................60
Section 2.02      Acceptance by the Trustee......................................................................62
Section 2.03      Repurchase or Substitution of Mortgage Loans by the Seller.....................................63
Section 2.04      Representations and Warranties of the Seller with Respect to the Mortgage Loans................66
Section 2.05      Representations, Warranties and Covenants of the Servicer......................................67
Section 2.06      Representations and Warranties of the Depositor................................................69
Section 2.07      Representations and Warranties of the Seller...................................................70
Section 2.08      Covenants of the Seller........................................................................72
Section 2.09      Conveyance of REMIC 1 Regular Interests and Acceptance of REMIC 1 by the Trustee;
                  Issuance of Certificates.......................................................................73
Section 2.10      Conveyance of Class B-2 Interest and Acceptance of REMIC 3 by the Trustee; Issuance of
                  the Class B-2 Certificates.....................................................................73
Section 2.11      Conveyance of Class B-3 Interest and Acceptance of REMIC 4 by the Trustee; Issuance of
                  the Class B-3 Certificates.....................................................................74
Section 2.12      Conveyance of Class B-4 Interest and Acceptance of REMIC 5 by the Trustee; Issuance of
                  the Class B-4 Certificates.....................................................................74
Section 2.13      Conveyance of Class X/N Interest and Acceptance of REMIC 6 by the Trustee; Issuance of
                  the Class X/N Certificates.....................................................................75

                                   ARTICLE III

                 ADMINISTRATION AND SERVICING OF THE TRUST FUND

Section 3.01      Servicer to Act as Servicer....................................................................76
Section 3.02      Collection of Mortgage Loan Payments...........................................................78
Section 3.03      Realization Upon Defaulted Mortgage Loans......................................................78
Section 3.04      Collection Account and Distribution Account....................................................79
Section 3.05      Permitted Withdrawals From the Collection Account..............................................81
Section 3.06      Establishment of Escrow Accounts; Deposits in Escrow Accounts..................................82

                                      -i-
<PAGE>

Section 3.07      Permitted Withdrawals From Escrow Account......................................................82
Section 3.08      Payment of Taxes, Insurance and Other Charges; Collections Thereunder..........................83
Section 3.09      Transfer of Accounts...........................................................................83
Section 3.10      Maintenance of Hazard Insurance................................................................84
Section 3.11      Maintenance of Mortgage Impairment Insurance Policy............................................84
Section 3.12      Fidelity Bond, Errors and Omissions Insurance..................................................85
Section 3.13      Title, Management and Disposition of REO Property..............................................85
Section 3.14      Due-on-Sale Clauses; Assumption and Substitution Agreements....................................87
Section 3.15      Notification of Adjustments....................................................................88
Section 3.16      Optional Purchases of Mortgage Loans by Servicer...............................................88
Section 3.17      Trustee to Cooperate; Release of Files.........................................................89
Section 3.18      Servicing Compensation.........................................................................90
Section 3.19      Annual Statement as to Compliance..............................................................90
Section 3.20      Annual Independent Certified Public Accountants' Reports.......................................91
Section 3.21      Access to Certain Documentation and Information Regarding the Mortgage Loans...................91
Section 3.22      Commission Reporting...........................................................................92
Section 3.23      Obligations of the Servicer in Respect of Compensating Interest................................93
Section 3.24      Obligations of the Servicer in Respect of Mortgage Interest Rates and Monthly Payments.........94
Section 3.25      Investment of Funds in the Collection Account and the Distribution Account.....................94
Section 3.26      Liability of Servicer; Indemnification.........................................................95
Section 3.27      Reports of Foreclosure and Abandonment of Mortgaged Properties.................................96
Section 3.28      Protection of Assets...........................................................................96
Section 3.29      Net WAC Rate Carryover Reserve Account.........................................................96
Section 3.30      Advance Facility...............................................................................98

                                   ARTICLE IV

                                  FLOW OF FUNDS

Section 4.01      Interest Distributions........................................................................101
Section 4.02      Distributions of Principal and Monthly Excess Cashflow Amounts................................102
Section 4.03      Allocation of Losses..........................................................................109
Section 4.04      Method of Distribution........................................................................111
Section 4.05      Distributions on Book-Entry Certificates......................................................111
Section 4.06      Statements....................................................................................111
Section 4.07      Remittance Reports; Advances..................................................................114
Section 4.08      REMIC Distributions...........................................................................115

                                    ARTICLE V

                                THE CERTIFICATES

Section 5.01      The Certificates..............................................................................119
Section 5.02      Registration of Transfer and Exchange of Certificates.........................................119

                                      -ii-
<PAGE>

Section 5.03      Mutilated, Destroyed, Lost or Stolen Certificates.............................................124
Section 5.04      Persons Deemed Owners.........................................................................124
Section 5.05      Appointment of Paying Agent...................................................................125

                                   ARTICLE VI

                   THE SELLER, THE SERVICER AND THE DEPOSITOR

Section 6.01      Liability of the Seller, the Servicer and the Depositor.......................................126
Section 6.02      Merger or Consolidation of, or Assumption of the Obligations of, the Seller, the Servicer
                  or the Depositor..............................................................................126
Section 6.03      Limitation on Liability of the Servicer and Others............................................126
Section 6.04      Servicer Not to Resign........................................................................127
Section 6.05      Delegation of Duties..........................................................................128

                                   ARTICLE VII

                                     DEFAULT

Section 7.01      Servicer Events of Termination................................................................129
Section 7.02      Trustee to Act; Appointment of Successor......................................................131
Section 7.03      Waiver of Defaults............................................................................132
Section 7.04      Notification to Certificateholders............................................................132
Section 7.05      Survivability of Servicer Liabilities.........................................................132

                                  ARTICLE VIII

                                   THE TRUSTEE

Section 8.01      Duties of Trustee.............................................................................133
Section 8.02      Certain Matters Affecting the Trustee.........................................................134
Section 8.03      Trustee Not Liable for Certificates or Mortgage Loans.........................................136
Section 8.04      Trustee May Own Certificates..................................................................136
Section 8.05      Seller to Pay Trustee Fees and Expenses.......................................................137
Section 8.06      Eligibility Requirements for Trustee..........................................................137
Section 8.07      Resignation or Removal of Trustee.............................................................138
Section 8.08      Successor Trustee.............................................................................138
Section 8.09      Merger or Consolidation of Trustee............................................................139
Section 8.10      Appointment of Co-Trustee or Separate Trustee.................................................139
Section 8.11      Limitation of Liability.......................................................................140
Section 8.12      Trustee May Enforce Claims Without Possession of Certificates.................................141
Section 8.13      Suits for Enforcement.........................................................................141
Section 8.14      Waiver of Bond Requirement....................................................................141
Section 8.15      Waiver of Inventory, Accounting and Appraisal Requirement.....................................141
Section 8.16      Compliance with National Housing Act of 1934..................................................142

                                      -iii-
<PAGE>

                                   ARTICLE IX

                              REMIC ADMINISTRATION

Section 9.01      REMIC Administration..........................................................................143
Section 9.02      Prohibited Transactions and Activities........................................................145
Section 9.03      Indemnification with Respect to Certain Taxes and Loss of REMIC Status........................145

                                    ARTICLE X

                                   TERMINATION

Section 10.01     Termination...................................................................................147
Section 10.02     Additional Termination Requirements...........................................................148

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

Section 11.01     Amendment.....................................................................................150
Section 11.02     Recordation of Agreement; Counterparts........................................................151
Section 11.03     Limitation on Rights of Certificateholders....................................................151
Section 11.04     Governing Law; Jurisdiction...................................................................152
Section 11.05     Notices.......................................................................................152
Section 11.06     Severability of Provisions....................................................................153
Section 11.07     Article and Section References................................................................153
Section 11.08     Notice to the Rating Agencies.................................................................153
Section 11.09     Further Assurances............................................................................154
Section 11.10     Benefits of Agreement.........................................................................154
Section 11.11     Acts of Certificateholders....................................................................154

</TABLE>

                                      -iv-
<PAGE>

<TABLE>
<CAPTION>

EXHIBITS:

<S>                   <C>
Exhibit A-1           Form of Class AV-1 Certificates
Exhibit A-2           Form of Class AV-2A Certificates
Exhibit A-3           Form of Class AV-2B Certificates
Exhibit A-4           .Form of Class AV-2C Certificates
Exhibit A-5           Form of Class AF-1 Certificates
Exhibit A-6           Form of Class AF-2 Certificates
Exhibit A-7           Form of Class AF-3 Certificates
Exhibit A-8           Form of Class AF-4 Certificates
Exhibit A-9           Form of Class AF-5 Certificates
Exhibit B-1           Form of Class B-1 Certificates
Exhibit B-2           Form of Class B-2 Certificates
Exhibit B-3           Form of Class B-3 Certificates
Exhibit B-4           Form of Class B-4 Certificates
Exhibit C-1-1         Form of Class R Certificates
Exhibit C-1-2         Form of Class R-X Certificates
Exhibit C-2           Form of Class M-1 Certificates
Exhibit C-3           Form of Class M-2 Certificates
Exhibit C-4           Form of Class M-3 Certificates
Exhibit C-5           Form of Class X Certificates
Exhibit C-6           Form of Class N Certificates
Exhibit D             Mortgage Loan Schedule
Exhibit E             Form of Request for Release
Exhibit F-1           Form of Trustee's or Custodian's Initial Certification
Exhibit F-2           Form of Trustee's or Custodian's Final Certification
Exhibit F-3           Form of Receipt of Mortgage Note
Exhibit G             Mortgage Loan Purchase Agreement
Exhibit H             Form of Lost Note Affidavit
Exhibit I             Form of ERISA Representation
Exhibit J-1           Form of Investment Letter [Non-Rule 144A]
Exhibit J-2           Form of Investment Letter [Rule 144A]
Exhibit K             Form of Residual Certificate Transfer Affidavit
Exhibit L             Form of Transferor Certificate
Exhibit M             Monthly Information Provided by Servicer
Exhibit N             Form of Officer's Certificate with Respect to Prepayments
Exhibit O-1           Form of Certification to Be Provided by the Servicer with Form 10-K
Exhibit O-2           Form of Certification to Be Provided to the Servicer by the Trustee
Exhibit P             Form of Power of Attorney
Exhibit Q             Form of Cap Contracts

</TABLE>

<PAGE>

                  This Pooling and Servicing Agreement is dated as of October 1,
2004 (the "Agreement"), among CITIGROUP MORTGAGE LOAN TRUST INC., as depositor
(the "Depositor"), CREDIT-BASED ASSET SERVICING AND SECURITIZATION LLC, as
seller (the "Seller"), LITTON LOAN SERVICING LP, as servicer (the "Servicer")
and U.S. BANK NATIONAL ASSOCIATION, as trustee (the "Trustee").

                              PRELIMINARY STATEMENT

                  The Depositor 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 fifteen
Classes of Certificates, designated as (i) the Class AV-1 Certificates, the
Class AV-2A Certificates, the Class AV-2B Certificates, the Class AV-2C
Certificates, the Class AF-1 Certificates, the Class AF-2 Certificates, the
Class AF-3 Certificates, the Class AF-4 Certificates and the Class AF-5
Certificates, (ii) the Class M-1 Certificates, Class M-2 Certificates and the
Class M-3 Certificates, (iii) the Class B-1 Certificates, the Class B-2
Certificates, the Class B-3 Certificates and the Class B-4 Certificates, (iv)
the Class N Certificates, (v) the Class X Certificates and (vi) the Class R
Certificates and 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 Mortgage Loans and certain other
related assets subject to this Agreement (but exclusive of the Net WAC Rate
Carryover Reserve Account and the Cap Contracts) as a real estate investment
conduit (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 under federal income tax law. The following table irrevocably sets
forth the designation, the Uncertificated REMIC 1 Pass-Through Rate, the initial
Uncertificated Principal Balance, and solely 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                  LATEST POSSIBLE
       DESIGNATION               PASS-THROUGH RATE            UNCERTIFICATED BALANCE          MATURITY DATE(1)
       -----------               -----------------            ----------------------          ----------------
<S>     <C>                      <C>                           <C>                           <C>
          LT1AA                     Variable(2)                 $    235,358,890.15             November 2034
         LT1AV1                     Variable(2)                 $        687,045.00             November 2034
         LT1AV2A                    Variable(2)                 $        412,110.00             November 2034
         LT1AV2B                    Variable(2)                 $        143,035.00             November 2034
         LT1AV2C                    Variable(2)                 $        131,895.00             November 2034
         LT1AF1                  3.128% per annum               $        272,550.00             November 2034
         LT1AF2                  3.887% per annum               $        128,285.00             November 2034
         LT1AF3                  4.644% per annum               $         35,000.00             November 2034
         LT1AF4                  5.118% per annum               $         53,920.00             November 2034
         LT1AF5                  4.585% per annum               $         69,465.00             November 2034
          LT1M1                     Variable(2)                 $        138,090.00             November 2034
          LT1M2                     Variable(2)                 $        114,080.00             November 2034
          LT1M3                     Variable(2)                 $         31,220.00             November 2034
          LT1B1                     Variable(2)                 $         30,020.00             November 2034
          LT1B2                     Variable(2)                 $         26,415.00             November 2034
          LT1B3                     Variable(2)                 $         24,020.00             November 2034
          LT1B4                     Variable(2)                 $         37,225.00             November 2034
          LT1ZZ                     Variable(2)                 $      2,468,867.66             November 2034
         LT1SUB                     Variable(2)                 $          6,657.03             November 2034
         LT1GRP                     Variable(2)                 $         34,138.73             November 2034
         LT2SUB                     Variable(2)                 $          2,709.29             November 2034
         LT2GRP                     Variable(2)                 $         13,893.69             November 2034
          LT1XX                     Variable(2)                 $    240,104,734.05             November 2034
----------------
</TABLE>
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Mortgage Loan with the latest 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.

                                     - 2 -
<PAGE>

                                     REMIC 2
                                     -------

                  As provided herein, the Trustee shall 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 represents the sole
class of "residual interests" in REMIC 2 for purposes of the REMIC Provisions.
The following table sets forth the Class designation, Pass-Through Rate and
Original Class Certificate Principal Balance for each Class of Certificates or
REMIC 2 Regular Interests that represents one or more of the "regular interests"
in REMIC 2 created hereunder:
<TABLE>
<CAPTION>

                                                                  ORIGINAL CLASS
                                      PASS-THROUGH            CERTIFICATE PRINCIPAL           ASSUMED FINAL
      CLASS DESIGNATION                   RATE                       BALANCE                 MATURITY DATE(1)
      -----------------                   ----                       -------                 ----------------
<S>                               <C>                           <C>                        <C>
Class AV-1..................         Variable(2) (3)              $  137,409,000.00           November 2034
Class AV-2A.................         Variable(2) (3)              $   82,422,000.00           November 2034
Class AV-2B.................         Variable(2) (3)              $   28,607,000.00           November 2034
Class AV-2C.................         Variable(2) (3)              $   26,379,000.00           November 2034
Class AF-1..................       3.128% per annum(3)            $   54,510,000.00           November 2034
Class AF-2..................       3.887% per annum(3)            $   25,657,000.00           November 2034
Class AF-3..................       4.644% per annum(3)            $    7,000,000.00           November 2034
Class AF-4..................       5.118% per annum(3)            $   10,784,000.00           November 2034
Class AF-5..................       4.585% per annum(3)            $   13,893,000.00           November 2034
Class M-1...................         Variable(2) (3)              $   27,618,000.00           November 2034
Class M-2 ..................         Variable(2) (3)              $   22,816,000.00           November 2034
Class M-3...................         Variable(2) (3)              $    6,244,000.00           November 2034
Class B-1...................         Variable(2) (3)              $    6,004,000.00           November 2034
Class B-2 Interest..........         Variable(2) (3)              $    5,283,000.00           November 2034
Class B-3 Interest..........         Variable(2) (3)              $    4,804,000.00           November 2034
Class B-4 Interest..........         Variable(2) (3)              $    7,445,000.00           November 2034
Class X/N Interest .........         Variable(2) (3)              $   13,449,265.61(4)        November 2034
------------------

</TABLE>
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date following the maturity date for the
     Mortgage Loan with the latest maturity date has been designated as the
     "latest possible maturity date" for each Class of Certificates that
     represents one or more of the "regular interests" in REMIC 2.
(2)  Calculated in accordance with the definition of "Pass-Through Rate" herein.
(3)  Subject to increase and subject to a cap in accordance with the definition
     of "Pass-Through Rate" herein. (4) The Class X/N Interest will accrue
     interest at its variable Pass-Through Rate on the Notional Amount of the
     Class X/N Interest outstanding from time to time which shall equal the
     aggregate of the Uncertificated Principal Balances of the REMIC 1 Regular
     Interests. The Class X/N Interest will not accrue interest on its Class
     Certificate Principal Balance.
(4)  The Class X/N Interest will accrue interest at its variable Pass-Through
     Rate on the Notional Amount of the Class X/N Interest outstanding from time
     to time which shall equal the aggregate of the Uncertificated Principal
     Balances of the REMIC 1 Regular Interests. The Class X/N Interest will not
     accrue interest on its Class Certificate Principal Balance.

                                     - 3 -
<PAGE>

                                     REMIC 3
                                     -------

                  As provided herein, the Trustee shall make an election to
treat the segregated pool of assets consisting of the Class B-2 Interest 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 represents the sole class of
"residual interests" in REMIC 3 for purposes of the REMIC Provisions. The
following table sets forth the Class designation, Pass-Through Rate and Original
Class Certificate Principal Balance for the Class of Certificates that represent
the "regular interest" in REMIC 3 created hereunder:
<TABLE>
<CAPTION>

                                                                 ORIGINAL CLASS
                                      PASS-THROUGH            CERTIFICATE PRINCIPAL           ASSUMED FINAL
      CLASS DESIGNATION                   RATE                       BALANCE                MATURITY DATE(1)
      -----------------                   ----                       -------                ----------------
<S>                                   <C>                        <C>                        <C>
Class B-2...................          Variable(2)                $    5,283,000.00            November 2034
------------------
</TABLE>

(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date following the maturity date for the
     Mortgage Loan with the latest maturity date has been designated as the
     "latest possible maturity date" for the Class of Certificates that
     represent the "regular interest" in REMIC 3.
(2)  The Class B-2 Certificates will receive 100% of amounts received in respect
     of the Class B-2 Interest.

                                     - 4 -
<PAGE>

                                     REMIC 4
                                     -------

                  As provided herein, the Trustee shall make an election to
treat the segregated pool of assets consisting of the Class B-3 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 represents the sole class of
"residual interests" in REMIC 4 for purposes of the REMIC Provisions. The
following table sets forth the Class designation, Pass-Through Rate and Original
Class Certificate Principal Balance for the Class of Certificates that represent
the "regular interest" in REMIC 4 created hereunder:

<TABLE>
<CAPTION>
                                                                 ORIGINAL CLASS
                                      PASS-THROUGH            CERTIFICATE PRINCIPAL           ASSUMED FINAL
      CLASS DESIGNATION                   RATE                       BALANCE                MATURITY DATE(1)
      -----------------                   ----                       -------                ----------------
<S>                                   <C>                       <C>                           <C>
Class B-3...................          Variable(2)                $    4,804,000.00            November 2034
------------------

</TABLE>
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date following the maturity date for the
     Mortgage Loan with the latest maturity date has been designated as the
     "latest possible maturity date" for the Class of Certificates that
     represent the "regular interest" in REMIC 4.
(2)  The Class B-3 Certificates will receive 100% of amounts received in respect
     of the Class B-3 Interest.

                                     - 5 -
<PAGE>

                                     REMIC 5
                                     -------

                  As provided herein, the Trustee shall make an election to
treat the segregated pool of assets consisting of the Class B-4 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 represents the sole class of
"residual interests" in REMIC 5 for purposes of the REMIC Provisions. The
following table sets forth the Class designation, Pass-Through Rate and Original
Class Certificate Principal Balance for the Class of Certificates that represent
the "regular interest" in REMIC 5 created hereunder:
<TABLE>
<CAPTION>

                                                                  ORIGINAL CLASS
                                                              CERTIFICATE PRINCIPAL           ASSUMED FINAL
      CLASS DESIGNATION             PASS-THROUGH RATE                BALANCE                 MATURITY DATE(1)
      -----------------             -----------------                -------                 ----------------
<S>                                    <C>                       <C>                          <C>
Class B-4...................           Variable(2)                $    7,445,000.00           November 2034
------------------
</TABLE>
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date following the maturity date for the
     Mortgage Loan with the latest maturity date has been designated as the
     "latest possible maturity date" for the Class of Certificates that
     represent the "regular interest" in REMIC 5.
(2)  The Class B-4 Certificates will receive 100% of amounts received in respect
     of the Class B-4 Interest.

                                     - 6 -
<PAGE>

                                     REMIC 6

                  As provided herein, the Trustee shall make an election to
treat the segregated pool of assets consisting of the Class X/N 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 represents the sole class of
"residual interests" in REMIC 6 for purposes of the REMIC Provisions. The
following table sets forth (or describes) the Class designation, Pass-Through
Rate and Original Class Certificate Principal Balance for the Class of
Certificates that represent the "regular interest" in REMIC 6 created hereunder.
The Class X/N Certificates will not be certificated.

<TABLE>
<CAPTION>
                                                                 ORIGINAL CLASS
                                      PASS-THROUGH                 CERTIFICATE                ASSUMED FINAL
      CLASS DESIGNATION                   RATE                  PRINCIPAL BALANCE           MATURITY DATE(1)
      -----------------                   ----                  -----------------           ----------------
<S>                                   <C>                       <C>                          <C>
Class X/N...................          Variable(2)                $ 20,610,000.00              November 2034
------------------
</TABLE>
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date following the maturity date for the
     Mortgage Loan with the latest maturity date has been designated as the
     "latest possible maturity date" for the Class of Certificates that
     represent the "regular interest" in REMIC 6.
(2)  The Class X/N Certificates will receive 100% of amounts received in respect
     of the Class X/N Interest.

                  In addition to the above Certificates, the Trust Fund shall
issue two additional Classes of Certificates, designated as the Class N
Certificates and the Class X Certificates. For federal income tax purposes, in
the event that the beneficial ownership of the Class N Certificates and the
Class X Certificates is held by different investors for tax purposes, the
Trustee shall treat the Class N Certificates as debt of the Class X
Certificateholders for federal income tax purposes and shall not treat such
Class of Certificates as an interest in any REMIC created hereunder. In the
event that the beneficial ownership of the Class N Certificates and the Class X
Certificates is held by the same investor, the Trustee shall treat the Class N
Certificates as not having been issued for federal income tax purposes so that
the entire economic entitlement of the Class N Certificates and Class X
Certificates (excluding the Class X Certificates right to receive amounts from
the Net WAC Rate Carryover Reserve Account) will represent a "regular interest"
in REMIC 6. The following table irrevocably sets forth the designation, the
Pass-Through Rate, the Notional Amount for the Class N Certificates and the
Class X Certificates.
<TABLE>
<CAPTION>

                                                                                              ASSUMED FINAL
      CLASS DESIGNATION            PASS-THROUGH RATE             NOTIONAL AMOUNT              MATURITY DATE
      -----------------            -----------------             ---------------              -------------
<S>                                 <C>                          <C>                         <C>
Class N.....................        6.00% per annum              $ 20,610,000.00              November 2034
Class X.....................          Variable(1)                      N/A                    November 2034
------------------
</TABLE>
(1)  The Class X Certificates are entitled to all amounts remaining following
     distributions on the Class N Certificates in accordance with Section
     4.02(B)(II)(vi).

                                     - 7 -
<PAGE>

                                   ARTICLE I

                                   DEFINITIONS

Section 1.01      Defined Terms.

                  Whenever used in this Agreement or in the Preliminary
Statement, the following words and phrases, unless the context otherwise
requires, shall have the meanings specified in this Article. Unless otherwise
specified, interest on the Floating Rate Certificates will be calculated on the
basis of the actual number of days in the related Interest Accrual Period and a
360-day year. Interest on the Fixed Rate Certificates and the Class N
Certificates and the Class X Certificates will be calculated on the basis of a
360-day year consisting of twelve 30-day months.

                  "1933 Act":  The Securities Act of 1933, as amended.

                  "60+ Day Delinquent Loan": Each Mortgage Loan with respect to
which any portion of a Monthly Payment is, as of the last day of the prior
Collection Period, two months or more past due, each Mortgage Loan in
foreclosure, all REO Property and each Mortgage Loan for which the Mortgagor has
filed for bankruptcy after the Closing Date.

                  "Account": Either the Collection Account or the Distribution
Account.

                  "Accrued Certificate Interest": With respect to each
Distribution Date and each Class of Certificates and the Class B-2 Interest, the
Class B-3 Interest, the Class B-4 Interest and the Class X/N Interest, an amount
equal to the interest accrued at the applicable rate set forth or described
opposite such Class in the table in the Preliminary Statement during the related
Interest Accrual Period on the Certificate Principal Balance or uncertificated
Principal Balance (or Notional Amount) of such Class immediately prior to such
Distribution Date, reduced by such Class's Interest Percentage of Prepayment
Interest Shortfalls and Relief Act Interest Shortfalls for such Distribution
Date allocated to such Certificates as provided in Section 1.03 hereof.

                  "Adjustable-Rate Mortgage Loan": A Group I Mortgage Loan which
has a rate at which interest accrues that adjusts based on an Index plus a
related Gross Margin, as set forth and subject to the limitations in the related
Mortgage Note.

                  "Adjustment Date": With respect to each Adjustable-Rate
Mortgage Loan, each adjustment date on which the Mortgage Interest Rate of an
Adjustable-Rate Mortgage Loan may change pursuant to the related Mortgage Note.
The first Adjustment Date following the Cut-off Date as to each Adjustable-Rate
Mortgage Loan is set forth in the Mortgage Loan Schedule.

                  "Advance": As to any Actuarial Mortgage Loan or REO Property,
any advance made by the Servicer in respect of any Distribution Date pursuant to
Section 4.07.

                  "Advance Facility": As defined in Section 3.30 hereof.

                  "Advance Facility Notice":  As defined in Section 3.30 hereof.

                                     - 8 -
<PAGE>

                  "Advance Financing Person": As defined in Section 3.30 hereof.

                  "Advance Reimbursement Amounts": As defined in Section 3.30
hereof.

                  "Adverse REMIC Event":  As defined in Section 9.01(f) hereof.

                  "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.

                  "Agreement": This Pooling and Servicing Agreement and all
amendments and supplements hereto.

                  "Applicable Regulations": As to any Mortgage Loan, all
federal, state and local laws, statutes, rules and regulations applicable
thereto, including with respect to each FHA Loan, the FHA Regulations and the
related FHA Insurance Contract.

                  "Applied Realized Loss Amount": With respect to each
Distribution Date, the excess, if any, of (a) the aggregate Certificate
Principal Balance of the Class A Certificates and the Mezzanine Certificates
(after giving effect to all distributions on such Distribution Date) over (b)
the Pool Balance as of the end of the related Collection Period.

                  "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 of
record the sale of the Mortgage.

                  "Assumed Final Maturity Date": As to each Class of
Certificates, the date set forth as such in the Preliminary Statement.

                  "Available Funds": As to any Distribution Date, an amount
equal to the excess of (i) the sum of (a) the aggregate of the Monthly Payments
due during the related Collection Period and received by the Trustee one
Business Day prior to the related Distribution Date, (b) Liquidation Proceeds,
Insurance Proceeds, Principal Prepayments, Subsequent Recoveries, Substitution
Adjustment Amounts, the Purchase Price for any repurchased Mortgage Loan, the
Termination Price with respect to the termination of the Trust pursuant to
Section 10.01 hereof and other unscheduled recoveries of principal and interest
(excluding Prepayment Charges) in respect of the Mortgage Loans during the
related Prepayment Period, (c) the aggregate of any amounts received in respect
of an REO Property withdrawn from any REO Account and deposited in the
Collection Account for such Distribution Date, (d) any Compensating Interest for
such Distribution Date, and (e) the aggregate of any Advances made by the
Servicer for such Distribution Date over (ii) the sum of (a) amounts
reimbursable or payable to the Servicer pursuant to Section 3.05, (b) Stayed
Funds, (c) the Servicing Fee and (d) amounts deposited in the Collection Account
or the Distribution Account, as the case may be, in error.

                                     - 9 -
<PAGE>

                  "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.

                  "Bankruptcy Code": Title 11 of the United States Code, as
amended.

                  "Book-Entry Certificates": Any of the Certificates that shall
be registered in the name of the Depository or its nominee, the ownership of
which is reflected on the books of the Depository or on the books of a Person
maintaining an account with the Depository (directly, as a "Depository
Participant," or indirectly, as an indirect participant in accordance with the
rules of the Depository and as described in Section 5.02 hereof). On the Closing
Date, the Class A Certificates and the Mezzanine Certificates shall be
Book-Entry Certificates.

                  "Business Day": Any day other than a Saturday, a Sunday or a
day on which banking institutions in the State of Delaware, the State of New
York, the State of Texas or in the city in which the Corporate Trust Office of
the Trustee is located are authorized or obligated by law or executive order to
be closed.

                  "Cap Contracts": The interest rate corridors between U.S. Bank
National Association, as Trustee, and the counterparty thereunder, for the
benefit of the Holders of (i) the Group I Certificates, (ii) the Class AF-1
Certificates and (iii) the Mezzanine Certificates, collectively, forms of which
are attached hereto as Exhibit H.

                  "Certificate": Any Regular Certificate, Class N Certificate,
Class X Certificate or Residual Certificate.

                  "Certificate Custodian": Initially, U.S. Bank National
Association; thereafter any other Certificate Custodian acceptable to the
Depository and selected by the Trustee.

                  "Certificate Owner": With respect to each Book-Entry
Certificate, any beneficial owner thereof.

                  "Certificate Principal Balance": With respect to any Class of
Certificates (other than the Class N, Class X and Residual Certificates) and any
Distribution Date, the Original Class Certificate Principal Balance, reduced by
the sum of (i) all amounts actually distributed in respect of principal of such
Class on all prior Distribution Dates (taking into account any increases in the
Certificate Principal Balance thereof due to the receipt of any Subsequent
Recoveries as provided in Section 4.02) and (ii) Applied Realized Loss Amounts
allocated thereto. The Class N, Class X and Residual Certificates do not have a
Certificate Principal Balance. With respect to any Certificate (other than a
Class N, Class X or a Residual Certificate) of a Class and any Distribution
Date, the portion of the Certificate Principal Balance of such Class represented
by such Certificate equal to the product of the Percentage Interest evidenced by
such Certificate and the Certificate Principal Balance of such Class.

                                     - 10 -
<PAGE>

                  "Certificate Register" and "Certificate Registrar": The
register maintained and registrar appointed pursuant to Section 5.02 hereof.

                  "Certificateholder" or "Holder": The Person in whose name a
Certificate is registered in the Certificate Register, except that a
Disqualified Organization or non-U.S. Person shall not be a Holder of a Residual
Certificate for any purpose hereof.

                  "Class": Collectively, Certificates or REMIC Regular Interests
which have the same priority of payment and bear the same class designation and
the form of which is identical except for variation in the Percentage Interest
evidenced thereby.

                  "Class A Applied Realized Loss Amount": As to any Class of
Class A Certificates and as of any Distribution Date, the lesser of (x) the
Certificate Principal Balance thereof (after taking into account the
distribution of the Principal Remittance Amount and the Extra Principal
Distribution Amount, as applicable, on such Distribution Date, but prior to the
application of the Class A Applied Realized Loss Amount, if any, on such
Distribution Date) and (y) the excess of (i) the Applied Realized Loss Amount as
of such Distribution Date over (ii) the sum of the Class M-1 Applied Realized
Loss Amount, the Class M-2 Applied Realized Loss Amount, the Class M-3 Applied
Realized Loss Amount, the Class B-1 Applied Realized Loss Amount, the Class B-2
Applied Realized Loss Amount, the Class B-3 Applied Realized Loss Amount and the
Class B-4 Applied Realized Loss Amount, in each case as of such Distribution
Date.

                  "Class A Certificate": Any one of the Class AV-1 Certificates,
the Class AV-2A Certificates, the Class AV-2B Certificates, the Class AV-2C
Certificates, the Class AF-1 Certificates, the Class AF-2 Certificates, the
Class AF-3 Certificates, the Class AF-4 Certificates or the Class AF-5
Certificates.

                  "Class A Realized Loss Amortization Amount": As to any Class
of Class A Certificates and as of any Distribution Date, the lesser of (x) the
Unpaid Realized Loss Amount for such Class of Class A Certificates as of such
Distribution Date and (y) the excess of (i) the Monthly Excess Cashflow Amount
over (ii) the sum of the amounts described in Section 4.02(B)(II)(i) hereof, in
each case for such Distribution Date.

                  "Class AF-1 Certificate": Any one of the Certificates with an
"AF-1" designated on the face thereof substantially in the form annexed hereto
as Exhibit A-5, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                  "Class AF-1 Interest Carry Forward Amount": For any
Distribution Date, the Interest Carry Forward Amount for the Class AF-1
Certificates for such Distribution Date.

                  "Class AF-1 Pass-Through Rate": For each Distribution Date,
the lesser of (i) prior to the Optional Termination Date, 3.128% per annum and
on or after the Optional Termination Date, 3.628% per annum and (ii) the related
Rate Cap for such Distribution Date.

                  "Class AF-2 Certificate": Any one of the Certificates with an
"AF-2" designated on the face thereof substantially in the form annexed hereto
as Exhibit A-6, executed by the

                                     - 11 -
<PAGE>

Trustee on behalf of the Trust and authenticated and delivered by the
Certificate Registrar, representing the right to distributions as set forth
herein and therein.

                  "Class AF-2 Interest Carry Forward Amount": For the Interest
Accrual Period for any Distribution Date, the Interest Carry Forward Amount for
the Class AF-2 Certificates for such Distribution Date.

                  "Class AF-2 Pass-Through Rate": For each Distribution Date,
the lesser of (i) prior to the Optional Termination Date, 3.887% per annum and
on or after the Optional Termination Date, 4.387% per annum and (ii) the related
Rate Cap for such Distribution Date.

                  "Class AF-3 Certificate": Any one of the Certificates with an
"AF-3" designated on the face thereof substantially in the form annexed hereto
as Exhibit A-7, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                  "Class AF-3 Interest Carry Forward Amount": For the Interest
Accrual Period for any Distribution Date, the Interest Carry Forward Amount for
the Class AF-3 Certificates for such Distribution Date.

                  "Class AF-3 Pass-Through Rate": For each Distribution Date,
the lesser of (i) prior to the Optional Termination Date, 4.644% per annum and
on or after the Optional Termination Date, 5.144% per annum and (ii) the related
Rate Cap for such Distribution Date.

                  "Class AF-4 Certificate": Any one of the Certificates with an
"AF-4" designated on the face thereof substantially in the form annexed hereto
as Exhibit A-8, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                  "Class AF-4 Interest Carry Forward Amount": For the Interest
Accrual Period for any Distribution Date, the Interest Carry Forward Amount for
the Class AF-4 Certificates for such Distribution Date.

                  "Class AF-4 Pass-Through Rate": For each Distribution Date,
the lesser of (i) prior to the Optional Termination Date, 5.118% per annum and
on or after the Optional Termination Date, 5.618% per annum and (ii) the related
Rate Cap for such Distribution Date.

                  "Class AF-5 Certificate": Any one of the Certificates with an
"AF-5" designated on the face thereof substantially in the form annexed hereto
as Exhibit A-9, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                  "Class AF-5 Interest Carry Forward Amount": For the Interest
Accrual Period for any Distribution Date, the Interest Carry Forward Amount for
the Class AF-5 Certificates for such Distribution Date.

                                     - 12 -
<PAGE>

                  "Class AF-5 Pass-Through Rate": For each Distribution Date,
the lesser of (i) prior to the Optional Termination Date, 4.585% per annum and
on or after the Optional Termination Date, 5.085% per annum and (ii) the related
Rate Cap for such Distribution Date.

                  "Class AV-1 Certificate": Any one of the Certificates with an
"AV-1" designated on the face thereof substantially in the form annexed hereto
as Exhibit A-1, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                  "Class AV-1 Certificate Margin": For the Interest Accrual
Period for each Distribution Date (i) prior to the Optional Termination Date,
0.380% per annum, and (ii) on or after the Optional Termination Date, 0.760% per
annum.

                  "Class AV-1 Interest Carry Forward Amount": For the Interest
Accrual Period for any Distribution Date, the Interest Carry Forward Amount for
the Class AV-1 Certificates for such Distribution Date.

                  "Class AV-1 Pass-Through Rate": For each Distribution Date,
the lesser of (i) LIBOR as of the related LIBOR Determination Date, plus the
Class AV-1 Certificate Margin and (ii) the related Rate Cap for such
Distribution Date.

                  "Class AV-2A Certificate": Any one of the Certificates with an
"AV-2A" designated on the face thereof substantially in the form annexed hereto
as Exhibit A-2, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                  "Class AV-2A Certificate Margin": For the Interest Accrual
Period for each Distribution Date (i) prior to the Optional Termination Date,
0.180% per annum, and (ii) on or after the Optional Termination Date, 0.360% per
annum.

                  "Class AV-2A Interest Carry Forward Amount": For the Interest
Accrual Period for any Distribution Date, the Interest Carry Forward Amount for
the Class AV-2A Certificates for such Distribution Date.

                  "Class AV-2A Pass-Through Rate": For each Distribution Date,
the lesser of (i) LIBOR as of the related LIBOR Determination Date, plus the
Class AV-2A Certificate Margin and (ii) the related Rate Cap for such
Distribution Date.

                  "Class AV-2B Certificate": Any one of the Certificates with an
"AV-2B" designated on the face thereof substantially in the form annexed hereto
as Exhibit A-3, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                  "Class AV-2B Certificate Margin": For the Interest Accrual
Period for each Distribution Date (i) prior to the Optional Termination Date,
0.330% per annum, and (ii) on or after the Optional Termination Date, 0.660% per
annum.

                  "Class AV-2B Interest Carry Forward Amount": For the Interest
Accrual Period for any Distribution Date, the Interest Carry Forward Amount for
the Class AV-2B Certificates for such Distribution Date.

                  "Class AV-2B Pass-Through Rate": For each Distribution Date,
the lesser of (i) LIBOR as of the related LIBOR Determination Date, plus the
Class AV-2B Certificate Margin and (ii) the related Rate Cap for such
Distribution Date.

                                     - 13 -
<PAGE>

                  "Class AV-2C Certificate": Any one of the Certificates with an
"AV-2C" designated on the face thereof substantially in the form annexed hereto
as Exhibit A-2, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                  "Class AV-2C Certificate Margin": For the Interest Accrual
Period for each Distribution Date (i) prior to the Optional Termination Date,
0.520% per annum, and (ii) on or after the Optional Termination Date, 1.040% per
annum.

                  "Class AV-2C Interest Carry Forward Amount": For the Interest
Accrual Period for any Distribution Date, the Interest Carry Forward Amount for
the Class AV-2C Certificates for such Distribution Date.

                  "Class AV-2C Pass-Through Rate": For each Distribution Date,
the lesser of (i) LIBOR as of the related LIBOR Determination Date, plus the
Class AV-2C Certificate Margin and (ii) the related Rate Cap for such
Distribution Date.

                  "Class B Certificate": Any one of the Class B-1 Certificates,
the Class B-2 Certificates, the Class B-3 Certificates or the Class B-4
Certificates.

                  "Class B-1 Applied Realized Loss Amount": As to the Class B-1
Certificates and as of any Distribution Date, the lesser of (x) the Certificate
Principal Balance thereof (after taking into account the distribution of the
Principal Remittance Amount and the Extra Principal Distribution Amount on such
Distribution Date, but prior to the application of the Class B-1 Applied
Realized Loss Amount, if any, on such Distribution Date) and (y) the excess of
(i) the Applied Realized Loss Amount as of such Distribution Date over (ii) the
sum of the Class B-2 Applied Realized Loss Amount, the Class B-3 Applied
Realized Loss Amount and the Class B-4 Applied Realized Loss Amount, in each
case as of such Distribution Date.

                  "Class B-1 Certificate": Any one of the Certificates with a
"B-1" designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                  "Class B-1 Certificate Margin": For the Interest Accrual
Period for each Distribution Date (i) prior to the Optional Termination Date,
1.750% per annum, and (ii) on or after the Optional Termination Date, 2.625% per
annum.

                                     - 14 -
<PAGE>

                  "Class B-1 Pass-Through Rate": For each Distribution Date, the
lesser of (i) LIBOR as of the related LIBOR Determination Date, plus the Class
B-1 Certificate Margin and (ii) the related Rate Cap for such Distribution Date.

                  "Class B-1 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into
account distributions of principal on the Class A Certificates on such
Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account distributions of principal on the Class
M-1 Certificates on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account distributions
of principal on the Class M-2 Certificates on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M-3 Certificates (after taking into
account distributions of principal on the Class M-3 Certificates on such
Distribution Date) and (v) the Certificate Principal Balance of the Class B-1
Certificates immediately prior to such Distribution Date over (y) the lesser of
(A) the product of (i) 87.10% and (ii) the Pool Balance as of the last day of
the related Collection Period and (B) the Pool Balance as of the last day of the
related Collection Period minus the product of 0.50% and the Pool Balance on the
Cut-off Date, but in no event less than zero.

                  "Class B-1 Realized Loss Amortization Amount": As to the Class
B-1 Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class B-1 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(B)(II)(a) through (c) hereof, in each
case for such Distribution Date.

                  "Class B-2 Applied Realized Loss Amount": As to the Class B-2
Certificates and as of any Distribution Date, the lesser of (x) the Certificate
Principal Balance thereof (after taking into account the distribution of the
Principal Remittance Amount and the Extra Principal Distribution Amount on such
Distribution Date, but prior to the application of the Class B-2 Applied
Realized Loss Amount, if any, on such Distribution Date) and (y) the excess of
(i) the Applied Realized Loss Amount as of such Distribution Date over (ii) the
sum of the Class B-3 Applied Realized Loss Amount and the Class B-4 Applied
Realized Loss Amount, in each case as of such Distribution Date.

                  "Class B-2 Certificate": Any one of the Certificates with a
"B-2" designated on the face thereof substantially in the form annexed hereto as
Exhibit B-2, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                  "Class B-2 Certificate Margin": For the Interest Accrual
Period for each Distribution Date (i) prior to the Optional Termination Date,
1.900% per annum, and (ii) on or after the Optional Termination Date, 2.850% per
annum.

                  "Class B-2 Interest": An uncertificated interest in REMIC 2
held by the Trustee on behalf of the holders of the Class B-2 Certificates and
representing a regular interest in REMIC 2.

                                     - 15 -
<PAGE>

                  "Class B-2 Pass-Through Rate": For each Distribution Date, the
lesser of (i) LIBOR as of the related LIBOR Determination Date, plus the Class
B-2 Certificate Margin and (ii) the related Rate Cap for such Distribution Date.

                  "Class B-2 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into
account distributions of principal on the Class A Certificates on such
Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account distributions of principal on the Class
M-1 Certificates on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account distributions
of principal on the Class M-2 Certificates on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M-3 Certificates (after taking into
account distributions of principal on the Class M-3 Certificates on such
Distribution Date), (v) the Certificate Principal Balance of the Class B-1
Certificates (after taking into account distributions of principal on the Class
B-1 Certificates on such Distribution Date) and (vi) the Certificate Principal
Balance of the Class B-2 Certificates immediately prior to such Distribution
Date over (y) the lesser of (A) the product of (i) 89.30% and (ii) the Pool
Balance as of the last day of the related Collection Period and (B) the Pool
Balance as of the last day of the related Collection Period minus the product of
0.50% and the Pool Balance on the Cut-off Date, but in no event less than zero.

                  "Class B-2 Realized Loss Amortization Amount": As to the Class
B-2 Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class B-2 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(B)(II)(a) through (d) hereof, in each
case for such Distribution Date.

                  "Class B-3 Applied Realized Loss Amount": As to the Class B-3
Certificates and as of any Distribution Date, the lesser of (x) the Certificate
Principal Balance thereof (after taking into account the distribution of the
Principal Remittance Amount and the Extra Principal Distribution Amount on such
Distribution Date, but prior to the application of the Class B-3 Applied
Realized Loss Amount, if any, on such Distribution Date) and (y) the excess of
(i) the Applied Realized Loss Amount as of such Distribution Date over (ii) the
Class B-4 Applied Realized Loss Amount, in each case, as of such Distribution
Date.

                  "Class B-3 Certificate": Any one of the Certificates with a
"B-3" designated on the face thereof substantially in the form annexed hereto as
Exhibit B-3, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                  "Class B-3 Certificate Margin": For the Interest Accrual
Period for each Distribution Date (i) prior to the Optional Termination Date,
2.000% per annum, and (ii) on or after the Optional Termination Date, 3.000% per
annum.

                  "Class B-3 Interest": An uncertificated interest in REMIC 2
held by the Trustee on behalf of the holders of the Class B-3 Certificates and
representing a regular interest in REMIC 2.

                                     - 16 -
<PAGE>

                  "Class B-3 Pass-Through Rate": For each Distribution Date, the
lesser of (i) LIBOR as of the related LIBOR Determination Date, plus the Class
B-3 Certificate Margin and (ii) the related Rate Cap for such Distribution Date.

                  "Class B-3 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into
account distributions of principal on the Class A Certificates on such
Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account distributions of principal on the Class
M-1 Certificates on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account distributions
of principal on the Class M-2 Certificates on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M-3 Certificates (after taking into
account distributions of principal on the Class M-3 Certificates on such
Distribution Date), (v) the Certificate Principal Balance of the Class B-1
Certificates (after taking into account distributions of principal on the Class
B-1 Certificates on such Distribution Date), (vi) the Certificate Principal
Balance of the Class B-2 Certificates (after taking into account distributions
of principal on the Class B-2 Certificates on such Distribution Date) and (vi)
the Certificate Principal Balance of the Class B-3 Certificates immediately
prior to such Distribution Date over (y) the lesser of (A) the product of (i)
91.30% and (ii) the Pool Balance as of the last day of the related Collection
Period and (B) the Pool Balance as of the last day of the related Collection
Period minus the product of 0.50% and the Pool Balance on the Cut-off Date, but
in no event less than zero.

                  "Class B-3 Realized Loss Amortization Amount": As to the Class
B-3 Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class B-3 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(B)(II)(a) through (e) hereof, in each
case for such Distribution Date.

                  "Class B-4 Applied Realized Loss Amount": As to the Class B-4
Certificates and as of any Distribution Date, the lesser of (x) the Certificate
Principal Balance thereof (after taking into account the distribution of the
Principal Remittance Amount and the Extra Principal Distribution Amount on such
Distribution Date, but prior to the application of the Class B-4 Applied
Realized Loss Amount, if any, on such Distribution Date) and (y) the Applied
Realized Loss Amount as of such Distribution Date.

                  "Class B-4 Certificate": Any one of the Certificates with a
"B-4" designated on the face thereof substantially in the form annexed hereto as
Exhibit B-4, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                  "Class B-4 Certificate Margin": For the Interest Accrual
Period for each Distribution Date (i) prior to the Optional Termination Date,
2.000% per annum, and (ii) on or after the Optional Termination Date, 3.000% per
annum.

                                     - 17 -
<PAGE>

                  "Class B-4 Interest": An uncertificated interest in REMIC 2
held by the Trustee on behalf of the holders of the Class B-4 Certificates and
representing a regular interest in REMIC 2.

                  "Class B-4 Pass-Through Rate": For each Distribution Date, the
lesser of (i) LIBOR as of the related LIBOR Determination Date, plus the Class
B-4 Certificate Margin and (ii) the related Rate Cap for such Distribution Date.

                  "Class B-4 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into
account distributions of principal on the Class A Certificates on such
Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account distributions of principal on the Class
M-1 Certificates on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account distributions
of principal on the Class M-2 Certificates on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M-3 Certificates (after taking into
account distributions of principal on the Class M-3 Certificates on such
Distribution Date), (v) the Certificate Principal Balance of the Class B-1
Certificates (after taking into account distributions of principal on the Class
B-1 Certificates on such Distribution Date), (vi) the Certificate Principal
Balance of the Class B-2 Certificates (after taking into account distributions
of principal on the Class B-2 Certificates on such Distribution Date), (vii) the
Certificate Principal Balance of the Class B-3 Certificates (after taking into
account distributions of principal on the Class B-3 Certificates on such
Distribution Date) and (viii) the Certificate Principal Balance of the Class B-4
Certificates immediately prior to such Distribution Date over (y) the lesser of
(A) the product of (i) 94.40% and (ii) the Pool Balance as of the last day of
the related Collection Period and (B) the Pool Balance as of the last day of the
related Collection Period minus the product of 0.50% and the Pool Balance on the
Cut-off Date, but in no event less than zero.

                  "Class B-4 Realized Loss Amortization Amount": As to the Class
B-4 Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class B-4 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(B)(II)(a) through (f) hereof, in each
case for such Distribution Date.

                  "Class M Certificate": Any one of the Class M-1 Certificates,
the Class M-2 Certificates or the Class M-3 Certificates.

                  "Class M-1 Applied Realized Loss Amount": As to the Class M-1
Certificates and as of any Distribution Date, the lesser of (x) the Certificate
Principal Balance thereof (after taking into account the distribution of the
Principal Remittance Amount and the Extra Principal Distribution Amount on such
Distribution Date, but prior to the application of the Class M-1 Applied
Realized Loss Amount, if any, on such Distribution Date) and (y) the excess of
(i) the Applied Realized Loss Amount as of such Distribution Date over (ii) the
sum of the Class M-2 Applied Realized Loss Amount, the Class M-3 Applied
Realized Loss Amount, the Class B-1 Applied Realized Loss Amount, the Class B-2
Applied Realized Loss Amount, the Class B-3

                                     - 18 -
<PAGE>

Applied Realized Loss Amount and the Class B-4 Applied Realized Loss Amount, in
each case as of such Distribution Date.

                  "Class M-1 Certificate": Any one of the Certificates with an
"M-1" designated on the face thereof substantially in the form annexed hereto as
Exhibit C-2, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                  "Class M-1 Certificate Margin": For the Interest Accrual
Period for each Distribution Date (i) prior to the Optional Termination Date,
0.670% per annum, and (ii) on or after the Optional Termination Date, 1.005% per
annum.

                  "Class M-1 Pass-Through Rate": For each Distribution Date, the
lesser of (i) LIBOR as of the related LIBOR Determination Date, plus the Class
M-1 Certificate Margin and (ii) the related Rate Cap for such Distribution Date.

                  "Class M-1 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account
distributions of principal on the Class A Certificates 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
product of (i) 72.50% and (ii) the Pool Balance as of the last day of the
related Collection Period and (B) the Pool Balance as of the last day of the
related Collection Period minus the product of 0.50% and the Pool Balance on the
Cut-off Date, but in no event less than zero.

                  "Class M-1 Realized Loss Amortization Amount": As to the Class
M-1 Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class M-1 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(B)(II)(i) hereof, in each case for such
Distribution Date.

                  "Class M-2 Applied Realized Loss Amount": As to the Class M-2
Certificates and as of any Distribution Date, the lesser of (x) the Certificate
Principal Balance thereof (after taking into account the distribution of the
Principal Remittance Amount and the Extra Principal Distribution Amount on such
Distribution Date, but prior to the application of the Class M-2 Applied
Realized Loss Amount, if any, on such Distribution Date) and (y) the excess of
(i) the Applied Realized Loss Amount as of such Distribution Date over (ii) the
sum of the Class M-3 Applied Realized Loss Amount, the Class B-1 Applied
Realized Loss Amount, the Class B-2 Applied Realized Loss Amount, the Class B-3
Applied Realized Loss Amount and the Class B-4 Applied Realized Loss Amount, in
each case as of such Distribution Date.

                  "Class M-2 Certificate": Any one of the Certificates with an
"M-2" designated on the face thereof substantially in the form annexed hereto as
Exhibit C-3, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                                     - 19 -
<PAGE>

                  "Class M-2 Certificate Margin": For the Interest Accrual
Period for each Distribution Date (i) prior to the Optional Termination Date,
1.150% per annum, and (ii) on or after the Optional Termination Date, 1.725% per
annum.

                  "Class M-2 Pass-Through Rate": For each Distribution Date, the
lesser of (i) LIBOR as of the related LIBOR Determination Date, plus the Class
M-2 Certificate Margin and (ii) the related Rate Cap for such Distribution Date.

                  "Class M-2 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account
distributions of principal on the Class A Certificates on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account distributions of principal on the Class M-1
Certificates on such Distribution Date) and (iii) the Certificate Principal
Balance of the Class M-2 Certificates immediately prior to such Distribution
Date over (y) the lesser of (A) the product of (i) 82.00% and (ii) the Pool
Balance as of the last day of the related Collection Period and (B) the Pool
Balance as of the last day of the related Collection Period minus the product of
0.50% and the Pool Balance on the Cut-off Date, but in no event less than zero.

                  "Class M-2 Realized Loss Amortization Amount": As to the Class
M-2 Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class M-2 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(B)(II)(iii)(a) through (viii) hereof,
in each case for such Distribution Date.

                  "Class M-3 Applied Realized Loss Amount": As to the Class M-3
Certificates and as of any Distribution Date, the lesser of (x) the Certificate
Principal Balance thereof (after taking into account the distribution of the
Principal Remittance Amount and the Extra Principal Distribution Amount on such
Distribution Date, but prior to the application of the Class M-3 Applied
Realized Loss Amount, if any, on such Distribution Date) and (y) the excess of
(i) the Applied Realized Loss Amount as of such Distribution Date over (ii) the
sum of the Class B-1 Applied Realized Loss Amount, the Class B-2 Applied
Realized Loss Amount, the Class B-3 Applied Realized Loss Amount and the Class
B-4 Applied Realized Loss Amount, in each case as of such Distribution Date.

                  "Class M-3 Certificate": Any one of the Certificates with an
"M-3" designated on the face thereof substantially in the form annexed hereto as
Exhibit C-4, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Certificate Registrar, representing the right to
distributions as set forth herein and therein.

                  "Class M-3 Certificate Margin": For the Interest Accrual
Period for each Distribution Date (i) prior to the Optional Termination Date,
1.250% per annum, and (ii) on or after the Optional Termination Date, 1.875% per
annum.

                                     - 20 -
<PAGE>

                  "Class M-3 Pass-Through Rate": For each Distribution Date, the
lesser of (i) LIBOR as of the related LIBOR Determination Date, plus the Class
M-3 Certificate Margin and (ii) the related Rate Cap for such Distribution Date.

                  "Class M-3 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account
distributions of principal on the Class A Certificates on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account distributions of principal on the Class M-1
Certificates on such Distribution Date), (iii) the Certificate Principal Balance
of the Class M-2 Certificates (after taking into account distributions of
principal on the Class M-2 Certificates on such Distribution Date) and (iv) the
Certificate Principal Balance of the Class M-3 Certificates immediately prior to
such Distribution Date over (y) the lesser of (A) the product of (i) 84.60% and
(ii) the Pool Balance as of the last day of the related Collection Period and
(B) the Pool Balance as of the last day of the related Collection Period minus
the product of 0.50% and the Pool Balance on the Cut-off Date, but in no event
less than zero.

                  "Class M-3 Realized Loss Amortization Amount": As to the Class
M-3 Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class M-3 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(B)(II)(iii)(a) through (b) hereof, in
each case for such Distribution Date.

                  "Class N Certificate": Any one of the Class N Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit C-6, representing
the right to distributions as set forth herein and therein. The Class N
Certificates shall not represent an interest in any REMIC.

                  "Class R Certificate": The Class R Certificate executed by the
Trustee, and authenticated and delivered by the Certificate Registrar,
substantially in the form annexed hereto as Exhibit C-1-1 and evidencing the
ownership of the Class R-1 Interest and the Class R-2 Interest.

                  "Class R-X Certificate": The Class R-X Certificate executed by
the Trustee, and authenticated and delivered by the Certificate Registrar,
substantially in the form annexed hereto as Exhibit C-1-2 and evidencing the
ownership of the Class R-3 Interest, the Class R-4 Interest, the Class R-5
Interest and the Class R-6 Interest.

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

                  "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.

                                     - 21 -
<PAGE>

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

                  "Class X Certificate": Any one of the Class X Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit C-5, representing
the right to distributions as set forth herein and therein.

                  "Class X/N Certificate": An uncertificated certificate in
REMIC 5 held by the Trustee on behalf of the holders of the Class X and Class N
Certificates and representing a regular interest in REMIC 6.

                  "Class X/N Interest": An uncertificated interest in REMIC 2
held by the Trustee on behalf of the holders of the Class X and Class N
Certificates and representing a regular interest in REMIC 2.

                  "Class X Distributable Amount": With respect to any
Distribution Date, the excess of (i) the aggregate of amounts distributable on
the Class X/N Certificates for such Distribution Date, over (ii) the aggregate
of amounts distributable to the Class N Certificates pursuant to Section
4.02(B).

                  "Closing Date":  October 29, 2004.

                  "Code": The Internal Revenue Code of 1986, as it may be
amended from time to time.

                  "Collection Account": The account or accounts created and
maintained by the Servicer pursuant to Section 3.04, which shall be entitled
"Collection Account, Litton Loan Servicing LP, as Servicer for the Trust under
the Pooling and Servicing Agreement dated as of October 1, 2004 among Citigroup
Mortgage Loan Trust Inc., as Depositor, Credit-Based Asset Servicing and
Securitization LLC, as Seller, Litton Loan Servicing LP, as Servicer and U.S.
Bank National Association, as Trustee, in trust for registered Holders of
2004-CB7 Trust, C-BASS Mortgage Loan Asset-Backed Certificates, Series
2004-CB7," and which must be an Eligible Account.

                  "Collection Period": With respect to any Distribution Date,
the period from the second day of the calendar month preceding the month in
which such Distribution Date occurs through the first day of the month in which
such Distribution Date occurs.

                  "Combined Loan-to-Value Ratio": As of any date and Mortgage
Loan, the fraction, expressed as a percentage, the numerator of which is the
Principal Balance of the Mortgage Loan plus the principal balance of any related
senior mortgage loan, and the denominator of which is the Value of the related
Mortgaged Property.

                  "Compensating Interest":  As defined in Section 3.23 hereof.

                  "Condemnation Proceeds": All awards or settlements in respect
of a taking of a Mortgaged Property by exercise of the power of eminent domain
or condemnation.

                                     - 22 -
<PAGE>

                  "Conventional Mortgage Loan": Any Mortgage Loan that is not an
FHA Loan.

                  "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 in connection with this Agreement shall be
administered, which office at the date of the execution of this instrument is
located at 60 Livingston Avenue, St. Paul, Minnesota 55107, Attention:
Structured Finance, CMLT C-BASS 2004-CB7, or at such other address as the
Trustee may designate from time to time by notice to the Certificateholders, the
Depositor, the Servicer and the Seller.

                  "Corresponding Certificate": With respect to each REMIC 1
Regular Interest or REMIC II Regular Interest set forth below, the corresponding
Regular Certificate set forth in the table below:

        REMIC 1 REGULAR INTEREST                  REGULAR CERTIFICATE
                 LT1AV1                               Class AV-1
                 LT1AV2                               Class AV-2A
                 LT1AV3                               Class AV-2B
                 LT1AV4                               Class AV-2C
                 LTAF1                                Class AF-1
                 LTAF2                                Class AF-2
                 LTAF3                                Class AF-3
                 LTAF4                                Class AF-4
                 LTAF5                                Class AF-5
                 LT1M1                                 Class M-1
                 LT1M2                                 Class M-2
                 LT1M3                                 Class M-3
                 LT1B1                                 Class B-1
       LT1B2, Class B-2 Interest                       Class B-2
       LT1B3, Class B-3 Interest                       Class B-3
       LT1B4, Class B-4 Interest                       Class B-4
           Class X/N Interest                   Class X/N Certificates

                  "Custodial Agreement": The Custodial Agreement, dated as of
October 1, 2004, among the Trustee, the Servicer and the Custodian, as the same
may be amended or supplemented pursuant to the terms thereof.

                  "Custodian": The Bank of New York, a New York banking
corporation, or any successor custodian appointed pursuant to the terms of the
Custodial Agreement.

                  "Cut-off Date": October 1, 2004.

                  "Cut-off Date Principal Balance": With respect to any Mortgage
Loan, the unpaid principal balance thereof as of the Cut-off Date after
application of funds received or advanced on or before such date (or as of the
applicable date of substitution with respect to an Eligible Substitute Mortgage
Loan).

                                     - 23 -
<PAGE>

                  "DBRS": Dominion Bond Rating Service, Inc. and its successors,
and if such company shall for any reason no longer perform the functions of a
securities rating agency, "DBRS" shall be deemed to refer to any other
"nationally recognized statistical rating organization" as set forth on the most
current list of such organizations released by the Securities and Exchange
Commission.

                  "Debt Service Reduction": With respect to any Mortgage Loan, a
reduction in the scheduled Monthly Payment for such Mortgage Loan by a court of
competent jurisdiction in a proceeding under the Bankruptcy Code, except such a
reduction resulting from a Deficient Valuation.

                  "Defective Mortgage Loan": A Mortgage Loan replaced or to be
replaced by one or more Eligible Substitute Mortgage Loans.

                  "Deferred Interest": With respect to any Mortgage Loan
identified on the Mortgage Loan Schedule as having the possibility of negative
amortization, the current portion of interest not currently paid by the
Mortgagor that is added to the principal balance of such Mortgage Loan.

                  "Deficient Valuation": With respect to any Mortgage Loan, a
valuation of the related Mortgaged Property by a court of competent jurisdiction
in an amount less than the then outstanding principal balance of the Mortgage
Loan, which valuation results from a proceeding initiated under the Bankruptcy
Code.

                  "Definitive Certificates": As defined in Section 5.02(c)
hereof.

                  "Delinquent": Any Mortgage Loan, the Monthly Payment due on a
Due Date with respect to which such monthly payment is not made by the close of
business on the next scheduled Due Date for such Mortgage Loan.

                  "Depositor": Citigroup Mortgage Loan Trust Inc., a Delaware
corporation, or any successor in interest.

                  "Depository": The initial depository shall be The Depository
Trust Company, whose nominee is Cede & Co., or any other organization registered
as a "clearing agency" pursuant to Section 17A of the Securities Exchange Act of
1934, as amended. The Depository shall initially be the registered Holder of the
Book-Entry Certificates. The Depository shall at all times be a "clearing
corporation" as defined in Section 8-102(3) of the Uniform Commercial Code of
the State of New York.

                  "Depository Agreement": With respect to any Book-Entry
Certificates, the agreement among the Depositor, the Trustee and the initial
Depository, to be dated on or about the Closing Date.

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

                                     - 24 -
<PAGE>

                  "Determination Date": With respect to any Distribution Date,
the 10th day of the calendar month in which such Distribution Date occurs or, if
such 10th day is not a Business Day, the Business Day immediately preceding such
10th day.

                  "Directly Operate": With respect to any REO Property, the
furnishing or rendering of services to the tenants thereof, the management or
operation of such REO Property, the holding of such REO Property primarily for
sale to customers, the performance of any construction work thereon or any use
of such REO Property in a trade or business conducted by the Trust other than
through an Independent Contractor; provided, however, that the Trustee (or the
Servicer under this Agreement) shall not be considered to Directly Operate an
REO Property solely because the Trustee (or the Servicer under this Agreement)
establishes rental terms, chooses tenants, enters into or renews leases, deals
with taxes and insurance, or makes decisions as to repairs or capital
expenditures with respect to such REO Property.

                  "Disqualified Organization": A "disqualified organization"
under Section 860E of the Code, which as of the Closing Date is any of: (i) the
United States, any state or political subdivision thereof, any possession of the
United States, any foreign government, any international organization, or any
agency or instrumentality of any of the foregoing, (ii) 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, (iii) any organization described in
Section 1381(a)(2)(C) of the Code, or (iv) any other Person so designated by the
Trustee based upon an Opinion of Counsel provided by nationally recognized
counsel to the Trustee that the holding of an ownership interest in a Residual
Certificate by such Person may cause the Trust Fund or any Person having an
ownership interest in any Class of Certificates (other than such Person) to
incur 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. A corporation will not be treated as an
instrumentality of the United States or of any state or political subdivision
thereof if all of its activities are subject to tax and a majority of its board
of directors is not selected by a governmental unit. The term "United States,"
"state" and "international organization" shall have the meanings set forth in
Section 7701 of the Code.

                  "Distribution Account": The trust account or accounts created
and maintained by the Trustee pursuant to Section 3.04(b) which shall be
entitled "Distribution Account, U.S. Bank National Association, as Trustee, in
trust for the registered Holders of 2004-CB7 Trust, C-BASS Mortgage Loan
Asset-Backed Certificates, Series 2004-CB7" and which must be an Eligible
Account.

                  "Distribution Date": The 25th day of any calendar month, or if
such 25th day is not a Business Day, the Business Day immediately following such
25th day, commencing in November 2004.

                  "Distribution Information": The items calculated and reported
by the Trustee pursuant to Section 4.06(a)(i), (ii), (iii) and (xiv) through
(xxii) and any other information included in the Monthly Statement aggregated
and/or calculated by the Trustee from (a) information contained in the
Remittance Report or (b) other information furnished to the Trustee by the
Servicer pursuant to Section 4.07.

                                     - 25 -
<PAGE>

                   "Due Date": With respect to each Mortgage Loan and any
Distribution Date, the day of the calendar month in which such Distribution Date
occurs on which the Monthly Payment for such Mortgage Loan was due, exclusive of
any grace period.

                  "Eligible Account": Any of (i) an account or accounts
maintained with a federal or state chartered depository institution or trust
company the short-term unsecured debt obligations of which (or, in the case of a
depository institution or trust company that is the principal subsidiary of a
holding company, the short-term unsecured debt obligations of such holding
company) are rated "A-1" (or the equivalent) by each of the Rating Agencies at
the time any amounts are held on deposit therein, (ii) an account or accounts
the deposits in which are fully 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 delivered to the
Trustee and to each Rating Agency, the Certificateholders will have a claim with
respect to the funds in such account or a perfected first priority security
interest against such collateral (which shall be limited to Permitted
Investments) securing such funds that is superior to claims of any other
depositors or creditors of the depository institution with which such account is
maintained, (iii) a trust account or accounts maintained with the trust
department of a federal or state chartered depository institution, national
banking association or trust company acting in its fiduciary capacity or (iv) an
account otherwise acceptable to each Rating Agency without reduction or
withdrawal of their then current ratings of the Certificates as evidenced by a
letter from each Rating Agency to the Trustee. Eligible Accounts may bear
interest.

                  "Eligible Substitute Mortgage Loan": A mortgage loan
substituted for a Defective Mortgage Loan pursuant to the terms of this
Agreement which must, on the date of such substitution, (i) have an outstanding
principal balance, after application of all scheduled payments of principal and
interest due during or prior to the month of substitution, not in excess of, and
not more than 5% less than, the outstanding principal balance of the Defective
Mortgage Loan as of the Due Date in the calendar month during which the
substitution occurs, (ii) have a Mortgage Interest Rate, with respect to a
Fixed-Rate Mortgage Loan, not less than the Mortgage Interest Rate of the
Defective Mortgage Loan and not more than 1% in excess of the Mortgage Interest
Rate of such Defective Mortgage Loan, (iii) if an Adjustable-Rate Mortgage Loan,
have a Maximum Loan Rate not less than the Maximum Loan Rate for the Defective
Mortgage Loan, (iv) if an Adjustable-Rate Mortgage Loan, have a Minimum Loan
Rate not less than the Minimum Loan Rate of the Defective Mortgage Loan, (v) if
an Adjustable-Rate Mortgage Loan, have a Gross Margin equal to or greater than
the Gross Margin of the Defective Mortgage Loan, (vi) if an Adjustable-Rate
Mortgage Loan, have a next Adjustment Date not more than two months later than
the next Adjustment Date on the Defective Mortgage Loan, an Eligible Substitute
Mortgage Loan must have all Adjustment Dates occurring during the same Interest
Accrual Period during which Adjustment Dates occur with respect to the
substituted Mortgage Loan, (vii) have a remaining term to maturity not greater
than (and not more than one year less than) that of the Defective Mortgage Loan,
(viii) be current as of the date of substitution, (ix) have a Combined
Loan-to-Value Ratio as of the date of substitution equal to or lower than the
Combined Loan-to-Value Ratio of the Defective Mortgage Loan as of such date, (x)
have a risk grading determined by the Seller at least equal to the risk grading
assigned on the Defective Mortgage Loan, (xi) have been reunderwritten by the
Seller in accordance with the same underwriting criteria and guidelines as the
Defective Mortgage Loan and (xii) conform to each representation and warranty
set forth in Section 2.04 hereof applicable to the Defective Mortgage

                                     - 26 -
<PAGE>

Loan. In the event that one or more mortgage loans are substituted for one or
more Defective Mortgage Loans, the amounts described in clause (i) hereof shall
be determined on the basis of aggregate principal balances, the Mortgage
Interest Rates described in clause (ii) hereof shall be determined on the basis
of weighted average Mortgage Interest Rates, the risk gradings described in
clause (x) hereof shall be satisfied as to each such mortgage loan, the terms
described in clause (vii) hereof shall be determined on the basis of weighted
average remaining term to maturity, the Combined Loan-to-Value Ratios described
in clause (ix) hereof shall be satisfied as to each such mortgage loan and,
except to the extent otherwise provided in this sentence, the representations
and warranties described in clause (xii) hereof must be satisfied as to each
Eligible Substitute Mortgage Loan or in the aggregate, as the case may be.

                  "ERISA": The Employee Retirement Income Security Act of 1974,
as amended.

                  "ERISA Restricted Certificates": Any of the Mezzanine
Certificates, Class N, Class X and Residual Certificates.

                  "Escrow Account": The account or accounts created and
maintained pursuant to Section 3.06.

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

                  "Estate in Real Property": A fee simple estate in a parcel of
real property.

                  "Expense Fee Rate": The sum of (i) the Trustee Fee Rate and
(ii) the Servicing Fee Rate.

                  "Extended Period":  As defined in Section 9.04(b).

                  "Extra Principal Distribution Amount": As of any Distribution
Date, the lesser of (x) the Monthly Excess Cashflow Amount for such Distribution
Date and (y) the Overcollateralization Deficiency for such Distribution Date.

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

                  "FHA": The Federal Housing Administration, an agency within
HUD.

                  "FHA Approved Mortgagee": Those institutions which are
approved by FHA to act as servicer and mortgagee of record pursuant to FHA
Regulations.

                  "FHA Insurance Contract" or "FHA Insurance": The contractual
obligation of FHA respecting the insurance of an FHA Loan pursuant to the
National Housing Act, as amended.

                  "FHA Loan": A Mortgage Loan which is the subject of an FHA
Insurance Contract as evidenced by a Mortgage Insurance Certificate.

                                     - 27 -
<PAGE>

                  "FHA Regulations": Regulations promulgated by HUD under the
National Housing Act, codified in 24 Code of Federal Regulations, and other HUD
issuances relating to FHA Loans, including the related handbooks, circulars,
notices and mortgagee letters.

                  "Fidelity Bond": Shall have the meaning assigned thereto in
Section 3.12.

                  "Final Recovery Determination": With respect to any defaulted
Mortgage Loan or any REO Property (other than a Mortgage Loan or REO Property
purchased by the Seller or the Servicer pursuant to or as contemplated by
Section 2.03 or 10.01), 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, expects to be finally
recoverable in respect thereof have been so recovered. The Servicer shall
maintain records, prepared by a Servicing Officer, of each Final Recovery
Determination made thereby.

                  "Fitch": Fitch Ratings and its successors, and if such company
shall for any reason no longer perform the functions of a securities rating
agency, "Fitch" shall be deemed to refer to any other "nationally recognized
statistical rating organization" as set forth on the most current list of such
organizations released by the Securities and Exchange Commission.

                  "Fixed-Rate Mortgage Loan": A Group I Mortgage Loan or Group
II Mortgage Loan which has a constant annual rate at which interest accrues in
accordance with the provisions of the related Mortgage Note.

                  "Fixed Rate Certificates":  The Group II Certificates.

                  "Floating Rate Certificates": The Group I Certificates and the
Mezzanine Certificates.

                  "Foreclosure Price": The amount reasonably expected to be
received from the sale of the related Mortgaged Property net of any expenses
associated with foreclosure proceedings.

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

                  "Group I Certificates": The Class AV-1 Certificates, the Class
AV-2A Certificates, the Class AV-2B Certificates and the Class AV-2C
Certificates.

                  "Group I Enhancement Amount": As of any Distribution Date, an
amount equal to the excess of (x) the aggregate Principal Balance of the Group I
Mortgage Loans as of the last day of the related Collection Period over (y) the
aggregate Certificate Principal Balance of the Group I Certificates.

                  "Group I Interest Remittance Amount": As of any Determination
Date, the sum, without duplication, of (i) all interest due and collected or
advanced with respect to the related Collection Period on the Group I Mortgage
Loans (less the Servicing Fee, amounts available for

                                     - 28 -
<PAGE>

reimbursement of Advances and Servicing Advances pursuant to Section 3.05 and
expenses reimbursable pursuant to Section 6.03), (ii) all Compensating Interest
paid by the Servicer on such Determination Date with respect to the Group I
Mortgage Loans and (iii) the portion of any payment in connection with any
substitution, Purchase Price, Termination Price or Net Liquidation Proceeds
relating to interest with respect to the Group I Mortgage Loans received during
the related Prepayment Period.

                  "Group I Mortgage Loans": A Fixed-Rate Mortgage Loan or
Adjustable-Rate Mortgage Loan assigned to Loan Group I.

                  "Group I Principal Remittance Amount": With respect to any
Distribution Date, the sum (less amounts available for reimbursement of Advances
and Servicing Advances pursuant to Section 3.05 and expenses reimbursable
pursuant to Section 6.03) of: (i) each payment of principal on a Group I
Mortgage Loan due during the related Collection Period and received by the
Servicer on or prior to the related Determination Date, and any Advances with
respect thereto, (ii) all full and partial Principal Prepayments on the Group I
Mortgage Loans received by the Servicer during the related Prepayment Period,
(iii) the Net Liquidation Proceeds allocable to principal on the Group I
Mortgage Loans and any Subsequent Recoveries on the Group I Mortgage Loans
actually collected by the Servicer during the related Prepayment Period, (iv)
with respect to Defective Mortgage Loans in Loan Group I repurchased with
respect to such Prepayment Period, the portion of the Purchase Price allocable
to principal, (v) any Substitution Adjustment Amounts with respect to the Group
I Mortgage Loans received on or prior to the previous Determination Date and not
yet distributed and (vi) on the Distribution Date on which the Trust is to be
terminated in accordance with Section 10.01 hereof, that portion of the
Termination Price in respect of principal on the Group I Mortgage Loans.

                  "Group I Senior Excess Interest Amount": With respect to any
Distribution Date, an amount equal to the excess, if any, of (x) the Group I
Interest Remittance Amount multiplied by a fraction, the numerator of which is
the aggregate Certificate Principal Balance of the Group I Certificates
(immediately prior to such Distribution Date) and the denominator of which is
the Principal Balance of the Group I Mortgage Loans as of the last day of the
preceding Collection Period over (y) the sum of (i) the amount of any
distributions of interest pursuant to Section 4.01(II) and (ii) the portion
allocated to the Group I Senior Excess Interest Amount of the excess, if any, of
(a) the aggregate Accrued Certificate Interest for the Mezzanine Certificates
over (b) the Interest Remittance Amount multiplied by a fraction, the numerator
of which is the sum of the aggregate Certificate Principal Balance of the
Mezzanine Certificates (immediately prior to such Distribution Date) and the
Overcollateralization Amount and the denominator of which is the Principal
Balance of the Mortgage Loans as of the last day of the preceding Collection
Period. For purposes of the foregoing, the shortfall described in clause (y)(ii)
will be allocated in the following order: first, to the Group II Senior Excess
Interest Amount and second, to the Group I Senior Excess Interest Amount.

                  "Group I Senior Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the aggregate Certificate Principal Balance
of the Group I Certificates immediately prior to such Distribution Date over (y)
the lesser of (A) the product of (i) 61.00% and (ii) the Principal Balance of
the Group I Mortgage Loans as of the last day of the related Collection Period
and

                                     - 29 -
<PAGE>

(B) the Principal Balance of the Group I Mortgage Loans as of the last day of
the related Collection Period minus the product of (i) 0.50% and (ii) the
Principal Balance of the Group I Mortgage Loans on the Cut-off Date, but in no
event less than zero.

                  "Group I Targeted Enhancement Amount": With respect to any
Distribution Date (i) prior to the Stepdown Date, $66,570,337.45, (ii) on or
after the Stepdown Date and on which a Trigger Event is in effect, the Group I
Targeted Enhancement Amount for the immediately preceding Distribution Date and
(iii) on or after the Stepdown Date and on which a Trigger Event is not in
effect, an amount equal to the Group I Enhancement Amount assuming the entire
Group I Senior Principal Distribution Amount had been distributed in full.

                  "Group II Certificates": The Class AF-1 Certificates, the
Class AF-2 Certificates, the Class AF-3 Certificates, the Class AF-4
Certificates and the Class AF-5 Certificates.

                  "Group II Enhancement Amount": As of any Distribution Date, an
amount equal to the excess of (x) the aggregate Principal Balance of the Group
II Mortgage Loans as of the last day of the related Collection Period over (y)
the aggregate Certificate Principal Balance of the Group II Certificates.

                  "Group II Interest Remittance Amount": As of any Determination
Date, the sum, without duplication, of (i) all interest due and collected or
advanced with respect to the related Collection Period on the Group II Mortgage
Loans (less the Servicing Fee, amounts available for reimbursement of Advances
and Servicing Advances pursuant to Section 3.05 and expenses reimbursable
pursuant to Section 6.03), (ii) all Compensating Interest paid by the Servicer
on such Determination Date with respect to the Group II Mortgage Loans and (iii)
the portion of any payment in connection with any substitution, Purchase Price,
Termination Price or Net Liquidation Proceeds relating to interest with respect
to the Group II Mortgage Loans received during the related Prepayment Period.

                  "Group II Mortgage Loans": A Fixed-Rate Mortgage Loan assigned
to Loan Group II.

                  "Group II Principal Remittance Amount": With respect to any
Distribution Date, the sum (less amounts available for reimbursement of Advances
and Servicing Advances pursuant to Section 3.05 and expenses reimbursable
pursuant to Section 6.03) of: (i) each payment of principal on a Group II
Mortgage Loan due during the related Collection Period and received by the
Servicer on or prior to the related Determination Date, and any Advances with
respect thereto, (ii) all full and partial Principal Prepayments on the Group II
Mortgage Loans received by the Servicer during the related Prepayment Period,
(iii) the Net Liquidation Proceeds allocable to principal on the Group II
Mortgage Loans and any Subsequent Recoveries on the Group II Mortgage Loans
actually collected by the Servicer during the related Prepayment Period, (iv)
with respect to Defective Mortgage Loans in Loan Group II repurchased with
respect to such Prepayment Period, the portion of the Purchase Price allocable
to principal, (v) any Substitution Adjustment Amounts with respect to the Group
II Mortgage Loans received on or prior to the previous Determination Date and
not yet distributed and (vi) on the Distribution Date on which the Trust is to
be terminated in accordance with Section 10.01 hereof, that portion of the
Termination Price in respect of principal on the Group II Mortgage Loans.

                                     - 30 -
<PAGE>

                  "Group II Senior Excess Interest Amount": With respect to any
Distribution Date, an amount equal to the excess, if any, of (x) the Group II
Interest Remittance Amount multiplied by a fraction, the numerator of which is
the aggregate Certificate Principal Balance of the Group II Certificates
(immediately prior to such Distribution Date) and the denominator of which is
the Principal Balance of the Group II Mortgage Loans as of the last day of the
preceding Collection Period over (y) the sum of (i) the amount of any
distributions of interest pursuant to Section 4.01(I) and (ii) the portion
allocated to the Group II Senior Excess Interest Amount of the excess, if any,
of (a) the aggregate Accrued Certificate Interest for the Mezzanine Certificates
over (b) the Interest Remittance Amount multiplied by a fraction, the numerator
of which is the sum of the aggregate Certificate Principal Balance of the
Mezzanine Certificates (immediately prior to such Distribution Date) and the
Overcollateralization Amount and the denominator of which is the Principal
Balance of the Mortgage Loans as of the last day of the preceding Collection
Period. For purposes of the foregoing, the shortfall described in clause (y)(ii)
will be allocated in the following order: first, to the Group II Senior Excess
Interest Amount and second, to the Group I Senior Excess Interest Amount.

                  "Group II Senior Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the aggregate Certificate Principal Balance
of the Group II Certificates immediately prior to such Distribution Date over
(y) the lesser of (A) the product of (i) 61.00% and (ii) the Principal Balance
of the Group II Mortgage Loans as of the last day of the related Collection
Period and (B) the Principal Balance of the Group II Mortgage Loans as of the
last day of the related Collection Period minus the product of (i) 0.50% and
(ii) the Principal Balance of the Group II Mortgage Loans on the Cut-off Date,
but in no event less than zero.

                  "Group II Targeted Enhancement Amount": With respect to any
Distribution Date, (i) prior to the Stepdown Date, $27,092,928.16, (ii) on or
after the Stepdown Date and on which a Trigger Event is in effect, the Group II
Targeted Enhancement Amount for the immediately preceding Distribution Date and
(iii) on or after the Stepdown Date and on which a Trigger Event is not in
effect, an amount equal to the Group II Enhancement Amount assuming the entire
Group II Senior Principal Distribution Amount had been distributed in full.

                  "Highest Priority": As of any date of determination, the Class
of Mezzanine Certificates or Class A Certificates then outstanding with a
Certificate Principal Balance greater than zero, with the highest priority for
payments pursuant to Section 4.02, in the following order: Class A, Class M-1,
Class M-2, Class M-3, Class B-1, Class B-2, Class B-3 and Class B-4.

                  "HUD": The United States Department of Housing and Urban
Development, or any successor thereto and including the Federal Housing
Commissioner and the Secretary of Housing and Urban Development where
appropriate under the FHA Regulations.

                  "Independent": When used with respect to any specified Person,
any such Person who (i) is in fact independent of the Depositor, the Servicer
and their respective Affiliates, (ii) does not have any direct financial
interest in or any material indirect financial interest in the Depositor or the
Servicer or any Affiliate thereof, and (iii) is not connected with the Depositor
or the Servicer or any Affiliate thereof as an officer, employee, promoter,
underwriter, trustee, partner, director or Person performing similar functions;
provided, however, that a Person shall

                                     - 31 -
<PAGE>

not fail to be Independent of the Depositor or the Servicer or any Affiliate
thereof merely because such Person is the beneficial owner of 1% or less of any
Class of securities issued by the Depositor or the Servicer or any Affiliate
thereof, as the case may be.

                  "Independent Contractor": Either (i) any Person (other than
the Servicer) that would be an "independent contractor" with respect to the
Trust Fund within the meaning of Section 856(d)(3) of the Code if the Trust Fund
were a real estate investment trust (except that the ownership tests set forth
in that section shall be considered to be met by any Person that owns, directly
or indirectly, 35 percent or more of any Class of Certificates), so long as the
Trust Fund does not receive or derive any income from such Person and provided
that the relationship between such Person and the Trust Fund is at arm's length,
all within the meaning of Treasury Regulation Section 1.856-4(b)(5), or (ii) any
other Person (including the Servicer) if the Trustee has received an Opinion of
Counsel, which Opinion of Counsel shall be an expense of the Trust Fund, to the
effect that the taking of any action in respect of any REO Property by such
Person, subject to any conditions therein specified, that is otherwise herein
contemplated to be taken by an Independent Contractor will not cause such REO
Property to cease to qualify as "foreclosure property" within the meaning of
Section 860G(a)(8) of the Code (determined without regard to the exception
applicable for purposes of Section 860D(a) of the Code), or cause any income
realized in respect of such REO Property to fail to qualify as Rents from Real
Property.

                  "Index": With respect to each Adjustable-Rate Mortgage Loan
and with respect to each related Adjustment Date, the index as specified in the
related Mortgage Note.

                  "Initial Certificate Principal Balance": With respect to any
Certificate of a Class other than a Class N, Class X or Residual Certificate,
the amount designated "Initial Certificate Principal Balance" on the face
thereof.

                  "Initial Notional Amount": With respect to any Class N
Certificate, the amount designated "Initial Notional Amount" on the face
thereof.

                  "Insurance Proceeds": Proceeds of any title policy, hazard
policy or other insurance policy covering a Mortgage Loan, to the extent such
proceeds are not to be applied to the restoration of the related Mortgaged
Property or released to the Mortgagor in accordance with the procedures that the
Servicer would follow in servicing mortgage loans held for its own account,
subject to the terms and conditions of the related Mortgage Note and Mortgage.

                  "Interest Accrual Period": With respect to any Distribution
Date and (i) with respect to the Floating Rate Certificates, the period from the
preceding Distribution Date to the day prior to the current Distribution Date
(or, in the case of the first Distribution Date, the period from the Closing
Date through November 25, 2004), and (ii) with respect to the Fixed Rate
Certificates, the Class N Certificates and the Class X Certificates, the
calendar month immediately preceding the month in which such Distribution Date
occurs.

                  "Interest Carry Forward Amount": For any Class of Certificates
(other than the Class X and Residual Certificates) and any Distribution Date,
the sum of (a) the excess, if any, of the Accrued Certificate Interest and any
Interest Carry Forward Amount for the prior Distribution Date, over the amount
in respect of interest actually distributed on such Class on

                                     - 32 -
<PAGE>

such prior Distribution Date and (b) interest on such excess at the applicable
Pass-Through Rate (i) with respect to the Floating Rate Certificates, for the
actual number of days elapsed on the basis of a 360-day year since the prior
Distribution Date and (ii) with respect to the Fixed Rate Certificates, on the
basis of a 360-day year consisting of twelve 30-day months.

                  "Interest Percentage": With respect to any Class of
Certificates, the Class B-2 Interest, the Class B-3 Interest, the Class B-4
Interest and the Class X/N Interest and any Distribution Date, the ratio
(expressed as a decimal carried to six places) of the Accrued Certificate
Interest for such Class to the sum of the Accrued Certificate Interest for all
such Classes, in each case with respect to such Distribution Date.

                  "Interest Remittance Amount": For any Distribution Date, the
sum of (i) the Group I Interest Remittance Amount and (ii) the Group II Interest
Remittance Amount for such Distribution Date.

                  "Late Collections": With respect to any Mortgage Loan, all
amounts received subsequent to the Determination Date immediately following any
related Collection Period, whether as late payments of Monthly Payments or as
Insurance Proceeds, Liquidation Proceeds or otherwise, which represent late
payments or collections of principal and/or interest due (without regard to any
acceleration of payments under the related Mortgage and Mortgage Note) but
delinquent on a contractual basis for such Collection Period and not previously
recovered.

                  "LIBOR": With respect to the Floating Rate Certificates and
each Interest Accrual Period, the rate determined by the Trustee on the related
LIBOR Determination Date on the basis of the offered rate for one month United
States dollar deposits, as such rate appears on the Telerate Page 3750, as of
11:00 a.m. (London time) on such LIBOR Determination Date. If no such quotations
are available on an LIBOR Determination Date, LIBOR for the related Interest
Accrual Period will be established by the Trustee as follows:

                    (i) If on such LIBOR Determination Date two or more
               Reference Banks provide such offered quotations, LIBOR for the
               related Interest Accrual Period shall be the arithmetic mean of
               such offered quotations (rounded upwards if necessary to the
               nearest whole multiple of 0.001%);

                    (ii) If on such LIBOR Determination Date fewer than two
               Reference Banks provide such offered quotations, LIBOR for the
               related Interest Accrual Period shall be the arithmetic mean of
               the rates quoted by one or more major banks in New York City,
               selected by the Trustee after consultation with the Depositor, 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 Floating Rate Certificates; and

                    (iii) If no such quotations can be obtained, LIBOR for the
               related Interest Accrual Period shall be LIBOR for the prior
               Distribution Date.

                  "LIBOR Business Day": Any day on which banks in London,
England and The City of New York are open and conducting transactions in foreign
currency and exchange.

                                     - 33 -
<PAGE>

                  "LIBOR Determination Date": With respect to any Interest
Accrual Period for the Floating Rate Certificates, the second LIBOR Business Day
preceding the first day of such Interest Accrual Period.

                  "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 herein, as of the end of the related
Prepayment Period, that all Liquidation Proceeds and Insurance 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 Event": With respect to any Mortgage Loan, any of
the following events: (i) such Mortgage Loan is paid in full; (ii) a Final
Recovery Determination is made as to such Mortgage Loan; or (iii) such Mortgage
Loan is removed from the Trust Fund by reason of its being purchased, sold or
replaced pursuant to or as contemplated by Section 2.03 or Section 10.01. With
respect to any REO Property, either of the following events: (i) a Final
Recovery Determination is made as to such REO Property; or (ii) such REO
Property is removed from the Trust Fund by reason of its being sold or purchased
pursuant to Section 3.13 or Section 10.01.

                  "Liquidation Proceeds": The amount (other than amounts
received in respect of the rental of any REO Property prior to REO Disposition)
received by the Servicer in connection with (i) the taking of all or a part of a
Mortgaged Property by exercise of the power of eminent domain or condemnation or
(ii) the liquidation of a defaulted Mortgage Loan by means of a trustee's sale,
foreclosure sale or otherwise.

                  "Liquidation Report": The report with respect to a Liquidated
Mortgage Loan in such form and containing such information as is agreed to by
the Servicer and the Trustee.

                  "Loan Group": Either Loan Group I or Loan Group II, as the
context requires.

                  "Loan Group I": The Group I Mortgage Loans.

                  "Loan Group II": The Group II Mortgage Loans.

                  "Lockout Certificate Percentage": With respect to the Class
AF-5 Certificates and any Distribution Date, the percentage equal to the
Certificate Principal Balance of the Class AF-5 Certificates immediately prior
to such Distribution Date divided by the aggregate Certificate Principal Balance
of the Group II Certificates immediately prior to such Distribution Date.

                  "Lockout Distribution Percentage": With respect to the Class
AF-5 Certificates and any Distribution Date, the indicated percentage of the
Lockout Certificate Percentage for such Distribution Date:

                   Distribution Date Occurring In                    Percentage
                  -------------------------------------------------------------
                  November 2004 through October 2007                     0%
                  November 2007 through October 2009                    45%
                  November 2009 through October 2010                    80%
                  November 2010 through October 2011                    100%
                  November 2011 and thereafter                          300%

                                     - 34 -
<PAGE>

                  "Losses":  As defined in Section 9.03.

                  "Lost Note Affidavit": With respect to any Mortgage Loan as to
which the original Mortgage Note has been permanently lost 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 against any loss, cost or
liability resulting from the failure to deliver the original Mortgage Note) in
the form of Exhibit H hereto.

                  "Majority Certificateholders": The Holders of Certificates
evidencing at least 51% of the Voting Rights.

                  "Majority Class R Certificateholders": The Holders of Residual
Certificates evidencing at least a 51% Percentage Interest in the applicable
Class of Residual Certificates.

                  "Marker Rate": With respect to the Class X/N Interest and any
Distribution Date, a per annum rate equal to two (2) times the weighted average
of the Uncertificated REMIC 1 Pass-Through Rates for REMIC 1 Regular Interest
LT1AV1, REMIC 1 Regular Interest LT1AV2A, REMIC 1 Regular Interest LT1AV2B,
REMIC 1 Regular Interest LT1AV2C, REMIC 1 Regular Interest LT1AF1, REMIC 1
Regular Interest LT1AF2, REMIC 1 Regular Interest LT1AF3, REMIC 1 Regular
Interest LT1AF4, REMIC 1 Regular Interest LT1AF5, REMIC 1 Regular Interest
LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC 1
Regular Interest LT1B1, REMIC 1 Regular Interest LT1B2, REMIC 1 Regular Interest
LT1B3, REMIC 1 Regular Interest LT1B4 and REMIC 1 Regular Interest LT1ZZ, with
the rate on each such REMIC 1 Regular Interest (other than REMIC 1 Regular
Interest LT1ZZ) subject to a cap equal to the lesser of (i) (a) LIBOR as of the
related LIBOR Determination Date, plus the related Certificate Margin for the
Corresponding Certificate or (b) the fixed pass-through rate for the related
Corresponding Certificate, as applicable, and (ii) the related Rate Cap for such
Distribution Date, and with the rate on REMIC 1 Regular Interest LT1ZZ subject
to a cap of zero for the purpose of this calculation; provided, however, that
for this purpose, calculations of the Uncertificated REMIC 1 Pass-Through Rate
and the related caps with respect to REMIC 1 Regular Interest LT1AV1, REMIC 1
Regular Interest LTIAV2A, REMIC 1 Regular Interest LT1AV2B, REMIC 1 Regular
Interest LT1AV2B, REMIC 1 Regular Interest LT1AV2C, REMIC 1 Regular Interest
LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC I
Regular Interest LT1B1, REMIC 1 Regular Interest LT1B2, REMIC 1 Regular Interest
LT1B3 and REMIC 1 Regular Interest LT1B4 shall be multiplied by a fraction, the
numerator of which is the actual number of days elapsed in the related Interest
Accrual Period and the denominator of which is 30.

                  "Maximum Loan Rate": With respect to each Adjustable-Rate
Mortgage Loan, the percentage set forth in the related Mortgage Note as the
maximum Mortgage Interest Rate thereunder.

                  "Maximum LT1ZZ Uncertificated Accrued Interest Deferral
Amount": With respect to any Distribution Date, the excess of (a) accrued
interest at the Uncertificated REMIC 1 Pass-Through Rate applicable to REMIC 1
Regular Interest LT1ZZ for such Distribution Date

                                     - 35 -
<PAGE>

on a balance equal to the Uncertificated Principal Balance of REMIC 1 Regular
Interest LT1ZZ minus the REMIC 1 Overcollateralized Amount, in each case for
such Distribution Date, over (b) Uncertificated Accrued Interest on REMIC 1
Regular Interest LT1AV1, REMIC 1 Regular Interest LT1AV2A, REMIC 1 Regular
Interest LT1AV2B, REMIC 1 Regular Interest LT1AV2C, REMIC 1 Regular Interest
LT1AF1, REMIC 1 Regular Interest LT1AF2, REMIC 1 Regular Interest LT1AF3, REMIC
1 Regular Interest LT1AF4, REMIC 1 Regular Interest LT1AF5, REMIC 1 Regular
Interest LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3,
REMIC 1 Regular Interest LT1B1, REMIC 1 Regular Interest LT1B2, REMIC 1 Regular
Interest LT1B3 and REMIC 1 Regular Interest LT1B4 with the rate on each such
REMIC 1 Regular Interest subject to a cap equal to the lesser of (i) (a) LIBOR
as of the related LIBOR Determination Date, plus the related Certificate Margin
for the Corresponding Certificate or (b) the fixed pass-through rate for the
related Corresponding Certificate, as applicable, and (ii) the related Rate Cap
for such Distribution Date for the purpose of this calculation; provided,
however, that for this purpose, calculations of the Uncertificated REMIC 1
Pass-Through Rate and the related caps with respect to REMIC 1 Pass-Through Rate
and the related caps with respect to REMIC 1 Regular Interest LT1AV1, REMIC 1
Regular Interest LTIAV2A, REMIC 1 Regular Interest LT1AV2B, REMIC 1 Regular
Interest LT1AV2B, REMIC 1 Regular Interest LT1AV2C, REMIC 1 Regular Interest
LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC I
Regular Interest LT1B1, REMIC 1 Regular Interest LT1B2, REMIC 1 Regular Interest
LT1B3 and REMIC 1 Regular Interest LT1B4 shall be multiplied by a fraction, the
numerator of which is the actual number of days elapsed in the related Interest
Accrual Period and the denominator of which is 30.

                  "Mezzanine Certificates": Together, the Class M Certificates
and the Class B Certificates.

                  "Minimum Loan Rate": With respect to each Adjustable-Rate
Mortgage Loan, the percentage set forth in the related Mortgage Note as the
minimum Mortgage Interest Rate thereunder.

                  "Monthly Excess Cashflow Amount": The sum of (i) the Monthly
Excess Interest Amount and (ii) the Overcollateralization Release Amount.

                  "Monthly Excess Interest Amount": With respect to each
Distribution Date, the amount, if any, by which the Interest Remittance Amount
for such Distribution Date exceeds the aggregate amount distributed on such
Distribution Date pursuant to Section 4.01(I) through Section 4.01(III)(i)
through (vii).

                  "Monthly Payment": With respect to any Mortgage Loan, the
scheduled monthly payment of principal and interest on such Mortgage Loan which
is payable by the related Mortgagor from time to time under the related Mortgage
Note, determined: (a) after giving effect to (i) any Deficient Valuation and/or
Debt Service Reduction with respect to such Mortgage Loan and (ii) any reduction
in the amount of interest collectible from the related Mortgagor pursuant to the
Relief Act; (b) without giving effect to any extension granted or agreed to by
the Servicer pursuant to Section 3.01; and (c) on the assumption that all other
amounts, if any, due under such Mortgage Loan are paid when due.

                                     - 36 -
<PAGE>

                  "Monthly Statement": The statement prepared and distributed by
the Trustee pursuant to Section 4.06(a).

                  "Moody's": Moody's Investors Service, Inc. and its successors,
and if such company shall for any reason no longer perform the functions of a
securities rating agency, "Moody's" shall be deemed to refer to any other
"nationally recognized statistical rating organization" as set forth on the most
current list of such organizations released by the Securities and Exchange
Commission.

                  "Mortgage": The mortgage, deed of trust or other instrument
creating a first or second lien on, or first or second priority security
interest in, a Mortgaged Property securing a Mortgage Note.

                  "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.

                  "Mortgage Insurance Certificate": The certificate evidencing
an FHA Insurance Contract.

                  "Mortgage Interest Rate": With respect to each Mortgage Loan,
the annual rate at which interest accrues on such Mortgage Loan from time to
time in accordance with the provisions of the related Mortgage Note, which rate
(i) in the case of each Fixed-Rate Mortgage Loan shall remain constant at the
rate set forth in the Mortgage Loan Schedule as the Mortgage Interest Rate in
effect immediately following the Cut-off Date and (ii) in the case of each
Adjustable-Rate Mortgage Loan (A) as of any date of determination until the
first Adjustment Date following the Cut-off Date shall be the rate set forth in
the Mortgage Loan Schedule as the Mortgage Interest Rate in effect immediately
following the Cut-off Date and (B) as of any date of determination thereafter
shall be the rate as adjusted on the most recent Adjustment Date, to equal the
sum, rounded to the nearest 0.125% as provided in the Mortgage Note, of the
Index, determined as set forth in the related Mortgage Note, plus the related
Gross Margin subject to the limitations set forth in the related Mortgage Note.
With respect to each Mortgage Loan that becomes an REO Property, as of any date
of determination, the annual rate determined in accordance with the immediately
preceding sentence as of the date such Mortgage Loan became an REO Property.

                  "Mortgage Loan": Each mortgage loan transferred and assigned
to the Trustee pursuant to Section 2.01 or Section 2.03(d) as from time to time
held as a part of the Trust Fund, the Mortgage Loans so held being identified in
the Mortgage Loan Schedule.

                  "Mortgage Loan Purchase Agreement": The agreement between the
Seller and the Depositor, dated as of October 28, 2004, regarding the transfer
of the Mortgage Loans by the Seller to or at the direction of the Depositor.

                  "Mortgage Loan Schedule": As of any date (i) with respect to
the Mortgage Loans, the list of such Mortgage Loans included in the Trust Fund
on such date, separately identifying the Group I Mortgage Loans and the Group II
Mortgage Loans, attached hereto as

                                     - 37 -
<PAGE>

Exhibit D. The Mortgage Loan Schedule shall be prepared by the Seller and
shall set forth the following information with respect to each Mortgage Loan:

                  (1) the Seller's Mortgage Loan identifying number;

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

                  (3) the type of Residential Dwelling constituting the
         Mortgaged Property or a designation that the Mortgaged Property is a
         multi-family property;

                  (4) the occupancy status of the Mortgaged Property at
         origination;

                  (5) the original months to maturity;

                  (6) the date of origination;

                  (7) the first payment date;

                  (8) the stated maturity date;

                  (9) the stated remaining months to maturity;

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

                  (11) the Principal Balance of each Mortgage Loan as of the
         Cut-off Date;

                  (12) [reserved];

                  (13) the Mortgage Interest Rate of the Mortgage Loan as of the
         Cut-off Date;

                  (14) the current principal and interest payment of the
         Mortgage Loan as of the Cut-off Date;

                  (15) the contractual interest paid to date of the Mortgage
         Loan;

                  (16) if the Mortgage Loan is not owner-financed, the Combined
         Loan-to-Value Ratio at origination;

                  (17)  a code indicating the loan performance status of the
         Mortgage Loan as of the Cut-off Date;

                  (18) a code indicating whether the Mortgage Loan is a Simple
         Interest Mortgage Loan or an Actuarial Mortgage Loan;

                  (19) a code indicating whether the Mortgaged Property is in
         bankruptcy or in its forbearance period as of the Cut-off Date;

                  (20) a code indicating whether the Mortgage Loan is
         conventional or insured by the FHA;

                                     - 38 -
<PAGE>

                  (21) with respect to each Adjustable-Rate Mortgage Loan, a
         code indicating the Index that is associated with such Mortgage Loan,
         the Gross Margin, the Periodic Rate Cap, the Minimum Loan Rate, the
         Maximum Loan Rate, the first Adjustment Date immediately following the
         Cut-off Date, the rate adjustment frequency and the payment adjustment
         frequency;

                  (22) a code indicating whether the Mortgage Loan has a
         Prepayment Charge and the type of Prepayment Charge;

                  (23) a code indicating whether the Mortgage Loan is
         owner-financed;

                  (24) a code indicating whether the Mortgage Loan is subject to
         negative amortization; and

                  (25) a code indicating whether the Mortgage Loan is a second
         lien.

                  The Mortgage Loan Schedule shall set forth the following
information, as of the Cut-off Date, with respect to the Mortgage Loans in the
aggregate, for the Group I Mortgage Loans and for the Group II Mortgage Loans:
(1) the number of Mortgage Loans; (2) the current Principal Balance of the
Mortgage Loans; (3) the weighted average Mortgage Interest Rate of the Mortgage
Loans; and (4) the weighted average maturity of the Mortgage Loans. The Mortgage
Loan Schedule shall be amended from time to time by the Seller in accordance
with the provisions of this Agreement. With respect to any Eligible Substitute
Mortgage Loan, Cut-off Date shall refer to the related Cut-off Date for such
Mortgage Loan, determined in accordance with the definition of Cut-off Date
herein.

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

                  "Mortgage Pool": The pool of Mortgage Loans, identified on
Exhibit D from time to time, and any REO Properties acquired in respect thereof.

                  "Mortgaged Property": The underlying property securing a
Mortgage Loan, including any REO Property, consisting of an Estate in Real
Property improved by a Residential Dwelling or multi-family dwelling.

                  "Mortgagor":  The obligor 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 Mortgage Interest Rate": With respect to any Mortgage
Loan, the Mortgage Interest Rate borne by such Mortgage Loan minus the Expense
Fee Rate.

                                     - 39 -
<PAGE>

                  "Net WAC Rate Carryover Amount": For any Distribution Date and
any Class A Certificate or Mezzanine Certificate, the excess of (i) the amount
of interest accrued on such Certificate based on the related Pass-Through Rate
(without regard to the related Rate Cap), over (ii) the amount of interest
accrued on such Certificate based on the related Rate Cap, together with the
unpaid portion of any such excess from prior Distribution Dates (and interest
accrued thereon at the then applicable Pass-Through Rate (without regard to the
related Rate Cap) on such Certificate.

                  "Net WAC Rate Carryover Reserve Account": The reserve account
established and maintained pursuant to Section 3.29.

                  "New Lease": Any lease of REO Property entered into on behalf
of the Trust, including any lease renewed or extended on behalf of the Trust if
the Trust has the right to renegotiate the terms of such lease.

                  "Nonrecoverable Advance": Any Advance or Servicing Advance
previously made or proposed to be made in respect of a Mortgage Loan that, in
the good faith business judgment of the Servicer, will not or, in the case of a
proposed Advance or Servicing Advance, would not be ultimately recoverable from
Late Collections on such Mortgage Loan as provided herein.

                  "Notional Amount": Immediately prior to any Distribution Date,
with respect to the Class X/N Interest, the aggregate Uncertificated Principal
Balance of the REMIC 1 Regular Interests. With respect to the Class N
Certificates, an amount equal to the Original Class N Notional Amount reduced by
the aggregate distributions made to the Class N Certificates pursuant to Section
4.02(B)(II)(v).

                  "Offered Certificates": The Class A Certificates and the
Mezzanine Certificates (other than the Class B-2, Class B-3 and Class B-4
Certificates).

                  "Officers' Certificate": A certificate signed by the Chairman
of the Board, the Vice Chairman of the Board, the President or a vice president
(however denominated), or by the Treasurer, the Secretary, or one of the
assistant treasurers or assistant secretaries of the Servicer, the Seller or the
Depositor, as applicable.

                  "Opinion of Counsel": A written opinion of counsel, who may,
without limitation, be a salaried counsel for the Depositor or the Servicer
except that any opinion of counsel relating to (a) the qualification of any
REMIC as a REMIC or (b) compliance with the REMIC Provisions must be an opinion
of Independent counsel.

                  "Optional Termination Date": The first Distribution Date on
which the Servicer or an Affiliate of the Servicer may opt to terminate the
Mortgage Pool pursuant to Section 10.01.

                  "Original Class N Notional Amount": The Notional Amount of the
Class N Certificates on the Closing Date, as set forth opposite such Class in
the Preliminary Statement.

                  "Original Class Certificate Principal Balance": With respect
to each Class of Certificates, the Certificate Principal Balance thereof on the
Closing Date, as set forth opposite

                                     - 40 -
<PAGE>

such Class in the Preliminary Statement, except with respect to the Class N,
Class X and Residual Certificates, which have an Original Class Certificate
Principal Balance of zero.

                  "Overcollateralization Amount": As of any Distribution Date,
the excess of (x) the Pool Balance as of the last day of the immediately
preceding Collection Period over (y) the aggregate Certificate Principal Balance
of the Class A Certificates and the Mezzanine Certificates (after taking into
account all distributions of principal on such Distribution Date).

                  "Overcollateralization Deficiency": As of any Distribution
Date, the excess, if any, of (x) the Targeted Overcollateralization Amount for
such Distribution Date over (y) the Overcollateralization Amount for such
Distribution Date, calculated for this purpose after taking into account the
reduction on such Distribution Date of the aggregate Certificate Principal
Balance of the Class A Certificates and the Mezzanine Certificates resulting
from the distribution of the Principal Remittance Amount on such Distribution
Date, but prior to taking into account any Applied Realized Loss Amounts on such
Distribution Date.

                  "Overcollateralization Release Amount": With respect to any
Distribution Date after the Stepdown Date on which a Trigger Event is not in
effect, the lesser of (x) the Principal Remittance Amount for such Distribution
Date and (y) the excess, if any, of (i) the Overcollateralization Amount for
such Distribution Date (assuming that 100% of the Principal Remittance Amount is
applied as a principal distribution on the Class A Certificates and the
Mezzanine Certificates on such Distribution Date), over (ii) the Targeted
Overcollateralization Amount for 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": Any of the Class AV-1 Pass-Through Rate,
the Class AV-2A Pass-Through Rate, the Class AV-2B Pass-Through Rate, the Class
AV-2C Pass-Through Rate, the Class AF-1 Pass-Through Rate, the Class AF-2
Pass-Through Rate, the Class AF-3 Pass-Through Rate, the Class AF-4 Pass-Through
Rate, the Class AF-5 Pass-Through Rate, the Class M-1 Pass-Through Rate, the
Class M-2 Pass-Through Rate, the Class M-3 Pass-Through Rate, the Class B-1
Pass-Through Rate, the Class B-2 Pass-Through Rate, the Class B-3 Pass-Through
Rate and the Class B-4 Pass-Through Rate. With respect to the Class N
Certificates, the Pass-Through Rate is 10.00% per annum. With respect to the
Class X/N Interest and any Distribution Date, a per annum rate equal to the
percentage equivalent of a fraction, the numerator of which is the sum of the
amounts calculated pursuant to clauses (A) through (R) below, and the
denominator of which is the aggregate Uncertificated Principal Balance of REMIC
1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1AV1, REMIC 1 Regular
Interest LT1AV2A, REMIC 1 Regular Interest LT1AV2B, REMIC 1 Regular Interest
LT1AV2C, REMIC 1 Regular Interest LT1AF1, REMIC 1 Regular Interest LT1AF2, REMIC
1 Regular Interest LT1AF3, REMIC 1 Regular Interest LT1AF4, REMIC 1 Regular
Interest LT1AF5, REMIC 1 Regular Interest LT1M1, REMIC 1 Regular Interest LT1M2,
REMIC 1 Regular Interest LT1M3, REMIC 1 Regular Interest LT1B1, REMIC 1 Regular
Interest LT1B2, REMIC 1 Regular Interest LT1B3, REMIC 1 Regular Interest LT1B4
and REMIC 1 Regular

                                     - 41 -
<PAGE>

Interest LT1ZZ. For purposes of calculating the Pass-Through Rate for the Class
X/N Interest, the numerator is equal to the sum of the following components:

                  (A) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1AA minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1AA;

                  (B) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1AV1 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1AV1;

                  (C) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1AV2A minus the Marker Rate, applied to an amount equal to
the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1AV2A;

                  (D) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1AV2B minus the Marker Rate, applied to an amount equal to
the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1AV2B;

                  (E) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1AV2C minus the Marker Rate, applied to an amount equal to
the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1AV2C;

                  (F) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1AF1 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1AF1;

                  (G) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1AF2 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1AF2;

                  (H) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1AF3 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1AF3;

                  (I) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1AF4 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1AF4;

                  (J) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1AF5 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1AF5;

                  (K) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1M1 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M1;

                                     - 42 -
<PAGE>

                  (L) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1M2 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M2;

                  (M) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1M3 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M3;

                  (N) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1B1 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B1;

                  (O) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1B2 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B2;

                  (P) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1B3 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B3;

                  (Q) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1B4 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B4; and

                  (R) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1ZZ minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1ZZ.

                  "Paying Agent": Any paying agent appointed pursuant to Section
5.05.

                  "Percentage Interest": With respect to any Certificate (other
than a Class N, Class X or Residual Certificate), a fraction, expressed as a
percentage, the numerator of which is the Initial Certificate Principal Balance,
as the case may be, represented by such Certificate and the denominator of which
is the Original Class Certificate Principal Balance of the related Class. With
respect to a Class N Certificate, the undivided percentage interest obtained by
dividing the Initial Notional Amount evidenced by such Certificate by the
Original Class N Notional Amount. With respect to a Class X or Residual
Certificate, the portion of the Class evidenced thereby, expressed as a
percentage, as stated on the face of such Certificate; provided, however, that
the sum of all such percentages for each such Class totals 100%.

                  "Periodic Rate Cap": With respect to each Adjustable-Rate
Mortgage Loan and any Adjustment Date therefor, the fixed percentage set forth
in the related Mortgage Note, which is the maximum amount by which the Mortgage
Interest Rate for such Mortgage Loan may increase or decrease (without regard to
the Maximum Loan Rate or the Minimum Loan Rate) on such Adjustment Date from the
Mortgage Interest Rate in effect immediately prior to such Adjustment Date.

                                     - 43 -
<PAGE>

                  "Permitted Investments": Any one or more of the following
obligations or securities acquired at a purchase price of not greater than par,
regardless of whether issued or managed by the Depositor, the Servicer, the
Trustee or any of their respective Affiliates or for which an Affiliate of the
Trustee serves as an advisor:

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

                    (ii) (A) demand and time deposits in, certificates of
               deposit of, bankers' acceptances issued by or federal funds sold
               by any depository institution or trust company (including the
               Trustee or its agents acting in their respective commercial
               capacities) incorporated under the laws of the United States of
               America or any state thereof and subject to supervision and
               examination by federal and/or state authorities, so long as, at
               the time of such investment or contractual commitment providing
               for such investment, such depository institution or trust company
               or its ultimate parent has a short term uninsured debt rating in
               one of the two highest available rating categories of S&P (i.e.,
               A-1+ and A-1) and Moody's and the highest available rating
               category of Fitch and DBRS provided that each such investment has
               an original maturity of no more than 365 days and (B) any other
               demand or time deposit or deposit which is fully insured by the
               FDIC;

                    (iii) repurchase obligations with a term not to exceed 30
               days with respect to any security described in clause (i) above
               and entered into with a depository institution or trust company
               (acting as principal) rated A-1 or higher by S&P, Fitch and DBRS
               and rated A2 or higher by Moody's, provided, however, that
               collateral -------- ------- transferred pursuant to such
               repurchase obligation must be of the type described in clause (i)
               above and must (A) be valued daily at current market prices plus
               accrued interest or (B) pursuant to such valuation, be equal, at
               all times, to 105% of the cash transferred by the Trustee in
               exchange for such collateral and (C) be delivered to the Trustee
               or, if the Trustee is supplying the collateral, an agent for the
               Trustee, in such a manner as to accomplish perfection of a
               security interest in the collateral by possession of certificated
               securities;

                    (iv) securities bearing interest or sold at a discount that
               are issued by any corporation incorporated under the laws of the
               United States of America or any State thereof and that are rated
               by each Rating Agency in its highest long-term unsecured rating
               categories at the time of such investment or contractual
               commitment providing for such investment;

                                     - 44 -
<PAGE>

                    (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 30 days after the
               date of acquisition thereof) that is rated by each Rating Agency
               in its highest short-term unsecured debt rating available at the
               time of such investment;

                    (vi) units of money market funds registered under the
               Investment Company Act of 1940 including funds managed or advised
               by the Trustee or affiliates thereof having the highest rating
               category by the applicable Rating Agency; and

                    (vii) if previously confirmed in writing to the Trustee, any
               other demand, money market or time deposit, or any other
               obligation, security or investment, as may be acceptable to the
               Rating Agencies in writing as a permitted investment of funds
               backing securities having ratings equivalent to its highest
               initial rating of the Class A Certificates;

provided, that no instrument described hereunder shall evidence either the right
to receive (a) only interest with respect to the obligations underlying such
instrument or (b) both principal and interest payments derived from obligations
underlying such instrument and the interest and principal payments with respect
to such instrument provide a yield to maturity at par greater than 120% of the
yield to maturity at par of the underlying obligations.

                  "Permitted Transferee": Any transferee of a Residual
Certificate other than a Disqualified Organization or a non-U.S. Person.

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

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

                  "Prepayment Assumption": As set forth in the Prospectus
Supplement.

                  "Prepayment Charge": With respect to any Prepayment Period,
any prepayment premium, fee or charge payable by the a Mortgagor in connection
with any Principal Prepayment pursuant to the terms of the related Mortgage
Note.

                  "Prepayment Interest Shortfall": With respect to any
Distribution Date, for each Mortgage Loan that was during the related Prepayment
Period the subject of a Principal Prepayment in full that was applied by the
Servicer to reduce the outstanding principal balance of such loan on a date
preceding the related Due Date, an amount equal to interest at the applicable
Mortgage Interest Rate (net of the Servicing Fee Rate) on the amount of such
Principal Prepayment for the number of days commencing on the date on which the
prepayment is applied and ending on the last day of the related Prepayment
Period.

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

                  "Principal Balance": As to any Mortgage Loan and any day,
other than a Liquidated Mortgage Loan, the related Cut-off Date Principal
Balance, minus all collections credited against the principal balance of any
such Mortgage Loan and the principal portion of Advances plus, Deferred
Interest, if any. For purposes of this definition, a Liquidated Mortgage Loan
shall be deemed to have a Principal Balance equal to the Principal Balance of
the related Mortgage Loan as of the final recovery of related Liquidation
Proceeds and a Principal Balance

                                     - 45 -
<PAGE>

of zero thereafter. As to any REO Property and any day, the Principal Balance of
the related Mortgage Loan immediately prior to such Mortgage Loan becoming REO
Property minus any REO Principal Amortization received with respect thereto on
or prior to such day.

                  "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 the full
amount of scheduled interest due on any Due Date in any month or months
subsequent to the month of prepayment.

                  "Principal Remittance Amount": With respect to any
Distribution Date, the sum of (i) the Group I Principal Remittance Amount and
(ii) the Group II Principal Remittance Amount for such Distribution Date.

                  "Private Certificates": Any of the Class B-2, Class B-3, Class
B-4, Class N, Class X and Residual Certificates.

                  "Property Insurance Proceeds": Proceeds of any title policy,
hazard policy or other insurance policy covering a Mortgage Loan, to the extent
such proceeds are received by the Servicer and are not to be applied to the
restoration of the related Mortgaged Property or released to the Mortgagor in
accordance with the Servicer's servicing procedures, subject to the terms and
conditions of the related Mortgage Note and Mortgage.

                  "Prospectus Supplement": That certain Prospectus Supplement
dated October 28, 2004 relating to the public offering of the Offered
Certificates.

                  "Purchase Price": With respect to any Mortgage Loan or REO
Property to be purchased pursuant to or as contemplated by Section 2.03 or
10.01, and as confirmed by an Officers' Certificate from the Servicer to the
Trustee, an amount equal to the sum of (i) 100% of the Principal Balance thereof
as of the date of purchase (or such other price as provided in Section 10.01),
(ii) in the case of (x) a Mortgage Loan, accrued interest on such Principal
Balance at the applicable Mortgage Interest Rate in effect from time to time
from the Due Date as to which interest was last covered by a payment by the
Mortgagor or an Advance by the Servicer, which payment or Advance had as of the
date of purchase been distributed pursuant to Section 4.01 and Section 4.02,
through the end of the calendar month in which the purchase is to be effected,
and (y) an REO Property, its fair market value, determined in good faith by the
Servicer, (iii) any unreimbursed Servicing Advances and Advances and any unpaid
Servicing Fees allocable to such Mortgage Loan or REO Property, (iv) any amounts
previously withdrawn from the Collection Account in respect of such Mortgage
Loan or REO Property pursuant to Section 3.13, and (v) in the case of a Mortgage
Loan required to be purchased pursuant to Section 2.03, expenses reasonably
incurred or to be incurred by the Servicer or the Trustee in respect of the
breach or defect giving rise to the purchase obligation, including any costs and
damages incurred by the Trust Fund in connection with any violation by such loan
of any predatory or abusive lending law.

                  "Qualified Insurer": Any insurance company acceptable to
Fannie Mae or Freddie Mac.

                                     - 46 -
<PAGE>

                  "Rate Cap": With respect to the Group I Certificates and any
Distribution Date, a per annum rate equal to the product of (i) the average of
the Net Mortgage Interest Rates of the Group I Mortgage Loans, weighted on the
basis of the Principal Balances of the Group I Mortgage Loans as of the first
day of the related Collection Period (or, in the case of the first Distribution
Date, the Cut-off Date) and (ii) a fraction, the numerator of which is 30 and
the denominator of which is the actual number of days elapsed in the related
Interest Accrual Period. For federal income tax purposes, the economic
equivalent of such rate shall be expressed as the weighted average of the
Uncertificated REMIC 1 Pass-Through Rate on REMIC 1 Regular Interest LT1GRP,
weighted on the basis of the Uncertificated Principal Balance of such REMIC 1
Regular Interest.

                  With respect to the Class AF-1 Certificates and any
Distribution Date, a per annum rate equal to the product of (i) the average of
the Net Mortgage Interest Rates of the Group II Mortgage Loans, weighted on the
basis of the Principal Balances of the Group II Mortgage Loans as of the first
day of the related Collection Period (or, in the case of the first Distribution
Date, the Cut-off Date) and (ii) a fraction, the numerator of which is 30 and
the denominator of which is the actual number of days elapsed in the related
Interest Accrual Period. For federal income tax purposes, the economic
equivalent of such rate shall be expressed as the weighted average of the
Uncertificated REMIC 1 Pass-Through Rate on REMIC 1 Regular Interest LT2GRP,
weighted on the basis of the Uncertificated Principal Balance of such REMIC 1
Regular Interest.

                  With respect to the Group II Certificates (other than the
Class AF-1 Certificates) and any Distribution Date, a per annum rate equal to
the average of the Net Mortgage Interest Rates of the Group II Mortgage Loans,
weighted on the basis of the Principal Balances of the Group II Mortgage Loans
as of the first day of the related Collection Period (or, in the case of the
first Distribution Date, the Cut-off Date). For federal income tax purposes, the
economic equivalent of such rate shall be expressed as the weighted average of
the Uncertificated REMIC 1 Pass-Through Rate on REMIC 1 Regular Interest LT2SUB,
weighted on the basis of the Uncertificated Principal Balance of such REMIC 1
Regular Interest.

                  With respect to the Mezzanine Certificates and any
Distribution Date, a per annum rate equal to the product of (i) the average of
the Net Mortgage Interest Rates of the Mortgage Loans, weighted in proportion to
the results of subtracting from the aggregate Principal Balance of each Loan
Group the current Certificate Principal Balance of the related Class of Class A
Certificates, and (ii) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days elapsed in the related
Interest Accrual Period. For federal income tax purposes, the economic
equivalent of such rate shall be expressed as the weighted average of the
Uncertificated REMIC 1 Pass-Through Rates on (a) REMIC 1 Regular Interest
LT1SUB, subject to a cap and a floor equal to the Expense Fee Rates of the Group
I Mortgage Loans and (b) REMIC 1 Regular Interest LT2SUB, subject to a cap and a
floor equal to the Expense Fee Rates of the Group II Mortgage Loans, weighted on
the basis of the Uncertificated Principal Balance of each such REMIC 1 Regular
Interest.

                  "Rating Agency or Rating Agencies": Fitch, Moody's, S&P and
DBRS, or their respective successors. If such agencies or their successors are
no longer in existence, "Rating Agencies" shall be such nationally recognized
statistical rating organizations as set forth on the

                                     - 47 -
<PAGE>

most current list of such organizations released by the Securities and Exchange
Commission and designated by the Depositor, notice of which designation shall be
given to the Trustee and the Servicer.

                  "Realized Loss": With respect to a Liquidated Mortgage Loan,
the amount by which the remaining unpaid principal balance of the Mortgage Loan
exceeds the amount of Net Liquidation Proceeds applied to the principal balance
of the related Mortgage Loan.

                  "Realized Loss Amortization Amount": Any of the Class M-1
Realized Loss Amortization Amount, the Class M-2 Realized Loss Amortization
Amount, the Class M-3 Realized Loss Amortization Amount, the Class B-1 Realized
Loss Amortization Amount, the Class B-2 Realized Loss Amortization Amount, the
Class B-3 Realized Loss Amortization Amount and the Class B-4 Realized Loss
Amortization Amount.

                  "Record Date": With respect to the Floating Rate Certificates,
the Business Day immediately preceding such Distribution Date; provided,
however, that if any such Certificate becomes a Definitive Certificate, the
Record Date for such Certificate shall be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.
With respect to the Fixed Rate Certificates, the Class X Certificates, the Class
N Certificates and the Residual Certificates and the first Distribution Date,
the Closing Date, and with respect to each Distribution Date following the first
Distribution Date, the last Business Day of the month immediately preceding the
month in which the related Distribution Date occurs.

                  "Reference Banks": Those banks (i) with an established place
of business in London, England, (ii) not controlling, under the control of or
under common control with the Depositor or the Trustee, (iii) whose quotations
appear on the Telerate Page 3750 on the relevant LIBOR Determination Date and
(iv) which have been designated as such by the Trustee; provided, however, that
if fewer than two of such banks provide a LIBOR rate, then any leading banks
selected by the Trustee which are engaged in transactions in United States
dollar deposits in the international Eurocurrency market.

                  "Regular Certificate": Any of the Class A Certificates, the
Mezzanine Certificates and Class X/N Certificates.

                  "Related Documents": With respect to any Mortgage Loan, the
related Mortgage Note, Mortgage and other documents required by Section 2.01.

                  "Relief Act":  The Servicemembers Civil Relief Act.

                  "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 Collection Period as a result of the application of the Relief Act, the
amount by which (i) interest collectible on such Mortgage Loan during such
Collection Period is less than (ii) one month's interest on the Principal
Balance of such Mortgage Loan at the Mortgage Interest Rate for such Mortgage
Loan before giving effect to the application of the Relief Act.

                                     - 48 -
<PAGE>

                  "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,
constituting the primary trust created hereby and to be administered hereunder,
with respect to which a REMIC election is to be made consisting of: (i) such
Mortgage Loans as from time to time are subject to this Agreement, together with
the Mortgage Files relating thereto, and together with all collections thereon
and proceeds thereof, (ii) any REO Property, together with all collections
thereon and proceeds thereof, (iii) the Trustee's rights with respect to the
Mortgage Loans under all insurance policies, required to be maintained pursuant
to this Agreement and any proceeds thereof, (iv) the Depositor's rights under
the Mortgage Loan Purchase Agreement (including any security interest created
thereby) and (v) the Collection Account, the Distribution Account (subject to
the last sentence of this definition) and any REO Account and such assets that
are deposited therein from time to time and any investments thereof, together
with any and all income, proceeds and payments with respect thereto.
Notwithstanding the foregoing, however, a REMIC election will not be made with
respect to the Net WAC Rate Carryover Reserve Account or the Cap Contracts.

                  "REMIC 1 Interest Loss Allocation Amount": With respect to any
Distribution Date, an amount equal to (a) the product of (i) the sum of the
aggregate Principal Balance of the Mortgage Loans and related REO Properties
then outstanding and (ii) the Uncertificated REMIC 1 Pass-Through Rate for REMIC
1 Regular Interest LT1AA minus the Marker Rate, divided by (b) 12.

                  "REMIC 1 Marker Allocation Percentage": 50% of any amount
payable or loss attributable from the Mortgage Loans, which shall be allocated
to REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1AV1, REMIC 1
Regular Interest LT1AV2A, REMIC 1 Regular Interest LT1AV2A, REMIC 1 Regular
Interest LT1AV2C, REMIC 1 Regular Interest LT1AF1, REMIC 1 Regular Interest
LT1AF2, REMIC 1 Regular Interest LT1AF3, REMIC 1 Regular Interest LT1AF4, REMIC
1 Regular Interest LT1AF5, REMIC 1 Regular Interest LT1M1, REMIC 1 Regular
Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC 1 Regular Interest LT1B1,
REMIC 1 Regular Interest LT1B2, REMIC 1 Regular Interest LT1B3, REMIC 1 Regular
Interest LT1B4 and REMIC 1 Regular Interest LT1ZZ.

                  "REMIC 1 Overcollateralization Target Amount": 0.50% of the
Targeted Overcollateralization Amount.

                  "REMIC 1 Overcollateralized Amount": With respect to any date
of determination, (i) 0.50% of the aggregate Uncertificated Principal Balance of
the REMIC 1 Regular Interests minus (ii) the aggregate Uncertificated Principal
Balance of REMIC 1 Regular Interest LT1AV1, REMIC 1 Regular Interest LT1AV2A,
REMIC 1 Regular Interest LT1AV2B, REMIC 1 Regular Interest LT1AV2C, REMIC 1
Regular Interest LT1AF1, REMIC 1 Regular Interest LT1AF2, REMIC 1 Regular
Interest LT1AF3, REMIC 1 Regular Interest LT1AF4, REMIC 1 Regular Interest
LT1AF5, REMIC 1 Regular Interest LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1
Regular Interest LT1M3, REMIC 1 Regular Interest LT1B1, REMIC 1 Regular Interest
LT1B2, REMIC 1 Regular Interest LT1B3 and REMIC 1 Regular Interest LT1B4, in
each case as of such date of determination.

                                     - 49 -
<PAGE>

                  "REMIC 1 Principal 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) 1 minus a fraction, the numerator of which is two
times the aggregate Uncertificated Principal Balance of REMIC 1 Regular Interest
LT1AV1, REMIC 1 Regular Interest LT1AV2A, REMIC 1 Regular Interest LT1AV2B,
REMIC 1 Regular Interest LT1AV2C, REMIC 1 Regular Interest LT1AF1, REMIC 1
Regular Interest LT1AF2, REMIC 1 Regular Interest LT1AF3, REMIC 1 Regular
Interest LT1AF4, REMIC 1 Regular Interest LT1AF5, REMIC 1 Regular Interest
LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC 1
Regular Interest LT1B1, REMIC 1 Regular Interest LT1B2, REMIC 1 Regular Interest
LT1B3 and REMIC 1 Regular Interest LT1B4 and the denominator of which is the
aggregate Uncertificated Principal Balance REMIC 1 Regular Interest LT1AV1,
REMIC 1 Regular Interest LT1AV2A, REMIC 1 Regular Interest LT1AV2B, REMIC 1
Regular Interest LT1AV2C, REMIC 1 Regular Interest LT1AF1, REMIC 1 Regular
Interest LT1AF2, REMIC 1 Regular Interest LT1AF3, REMIC 1 Regular Interest
LT1AF4, REMIC 1 Regular Interest LT1AF5, REMIC 1 Regular Interest LT1M1, REMIC 1
Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC 1 Regular Interest
LT1B1, REMIC 1 Regular Interest LT1B2, REMIC 1 Regular Interest LT1B3, REMIC 1
Regular Interest LT1B4 and REMIC 1 Regular Interest LT1ZZ.

                  "REMIC 1 Regular Interests": Any of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a "regular interest" in REMIC I. Each REMIC I Regular Interest
shall accrue interest at the related REMIC I Remittance 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 Balance as set forth in the Preliminary Statement hereto. The
following is a list of each of the REMIC I Regular Interests: REMIC 1 Regular
Interest LT1AA, REMIC 1 Regular Interest LT1AV1, REMIC 1 Regular Interest
LT1AV2A, REMIC 1 Regular Interest LT1AFV2B, REMIC 1 Regular Interest LT1AV2C,
REMIC 1 Regular Interest LT1AF1, REMIC 1 Regular Interest LT1AF2, REMIC 1
Regular Interest LT1AF3, REMIC 1 Regular Interest LT1AF4, REMIC 1 Regular
Interest LT1AF5, REMIC 1 Regular Interest LT1M1, REMIC 1 Regular Interest LT1M2,
REMIC 1 Regular Interest LT1M3, REMIC 1 Regular Interest LT1B1, REMIC 1 Regular
Interest LT1B2, REMIC 1 Regular Interest LT1B3, REMIC 1 Regular Interest LT1B4,
REMIC 1 Regular Interest LT1SUB, REMIC 1 Regular Interest LT1GRP, REMIC 1
Regular Interest LT2SUB, REMIC 1 Regular Interest LT2GRP, REMIC 1 Regular
Interest LT1XX and REMIC 1 Regular Interest LT1ZZ.

                  "REMIC 1 Sub WAC Allocation Percentage": 50% of any amount
payable or loss attributable from the Mortgage Loans, which shall be allocated
to REMIC 1 Regular Interest LT1SUB, REMIC 1 Regular Interest LT1GRP, REMIC 1
Regular Interest LT2SUB, REMIC 1 Regular Interest LT2GRP and REMIC 1 Regular
Interest LT1XX.

                  "REMIC 1 Subordinated Balance Ratio": The ratio among the
Uncertificated Principal Balances of each REMIC 1 Regular Interest ending with
the designation "SUB,", equal to the ratio among, with respect to each such
REMIC 1 Regular Interest, the excess of (x) the aggregate Principal Balance of
the Mortgage Loans in the related Loan Group over (y) the current aggregate
Certificate Principal Balance of the Class A Certificates in the related Loan
Group.

                                     - 50 -
<PAGE>

                  "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 regular interests and the Class R Certificate (in respect
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 Regular Interests": The Class B-2 Interest, the Class
B-3 Interest, the Class B-4 Interest and the Class X/N Interest.

                  "REMIC 3": The segregated pool of assets consisting of the
Class B-2 Interest conveyed in trust to the Trustee, for the benefit of the
Holders of the Class B-2 Certificates and the Class R-X Certificate (in respect
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 4": The segregated pool of assets consisting of the
Class B-3 Interest conveyed in trust to the Trustee, for the benefit of the
Holders of the Class B-3 Certificates and the Class R-X Certificate (in respect
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 the
Class B-4 Interest conveyed in trust to the Trustee, for the benefit of the
Holders of the Class B-4 Certificates and the Class R-X Certificate (in respect
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 the
Class X/N Interest conveyed in trust to the Trustee, for the benefit of the
Holders of the Class N Certificates and the Class X Certificates and the Class
R-X Certificate (in respect 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 Provisions": Provisions of the federal income tax law
relating to real estate mortgage investment conduits which appear at Section
860A through 860G of Subchapter M of Chapter 1 of the Code, and related
provisions, and regulations and rulings promulgated thereunder, as the foregoing
may be in effect from time to time.

                  "REMIC Regular Interests": The REMIC 1 Regular Interests and
the REMIC 2 Regular Interests.

                  "Remittance Report": A report prepared by the Servicer and
delivered to the Trustee pursuant to Section 4.07, containing the information
attached hereto as Exhibit M.

                  "Rents from Real Property": With respect to any REO Property,
gross income of the character described in Section 856(d) of the Code.

                                     - 51 -
<PAGE>

                  "REO Disposition": The sale or other disposition of an REO
Property on behalf of the Trust Fund.

                  "REO Principal Amortization": With respect to any REO
Property, for any calendar month, the aggregate of all amounts received in
respect of such REO Property during such calendar month, whether in the form of
rental income, sale proceeds (including, without limitation, that portion of the
Termination Price paid in connection with a purchase of all of the Mortgage
Loans and REO Properties pursuant to Section 10.01 that is allocable to such REO
Property) or otherwise, net of any portion of such amounts (i) payable pursuant
to Section 3.13 in respect of the proper operation, management and maintenance
of such REO Property or (ii) payable or reimbursable to the Servicer pursuant to
Section 3.13 for unpaid Servicing Fees in respect of the related Mortgage Loan
and unreimbursed Servicing Advances and Advances in respect of such REO Property
or the related Mortgage Loan.

                  "REO Property": A Mortgaged Property acquired by the Servicer
on behalf of the Trust Fund through foreclosure or deed-in-lieu of foreclosure,
as described in Section 3.13.

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

                  "Residential Dwelling": Any one of the following: (i) a
one-family dwelling, (ii) a two- to four-family dwelling, (iii) a one-family
dwelling unit in a Fannie Mae eligible condominium project, (iv) a one-family
dwelling in a planned unit development, which is not a co-operative, or (v) a
mobile or manufactured home (as defined in 42 United States Code, Section
5402(6)).

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

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

                  "Responsible Officer": Any officer assigned to the Corporate
Trust Division (or any successor thereto) of the Trustee, including any Vice
President, Assistant Vice President, Trust Officer, any Assistant Secretary, any
trust officer or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and
in each case having direct responsibility for the administration of this
Agreement.

                  "S&P": Standard & Poor's, a division of The McGraw-Hill
Companies, Inc., and its successors, and if such company shall for any reason no
longer perform the functions of a securities rating agency, "S&P" shall be
deemed to refer to any other "nationally recognized statistical rating
organization" as set forth on the most current list of such organizations
released by the Securities and Exchange Commission.

                  "Seller": Credit-Based Asset Servicing and Securitization LLC,
or its successor in interest, in its capacity as seller under the Mortgage Loan
Purchase Agreement.

                  "Senior Enhancement Percentage": For any Distribution Date,
the percentage obtained by dividing (x) the sum of (i) the aggregate Certificate
Principal Balance of the

                                     - 52 -
<PAGE>

Mezzanine Certificates and (ii) the Overcollateralization Amount, in each case
before taking into account the distribution of the Principal Remittance Amount
and the Extra Principal Distribution Amount on such Distribution Date by (y) the
Pool Balance as of the last day of the related Collection Period.

                  "Senior Principal Distribution Amount": As of any Distribution
Date on or after the Stepdown Date and as long as a Trigger Event is not in
effect, the excess 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 product of (i) 61.00% and (ii) the Principal Balance of the
Mortgage Loans as of the last day of the related Collection Period and (B) the
Principal Balance of the Mortgage Loans as of the last day of the related
Collection Period minus the product of (i) 0.50% and (ii) the Principal Balance
of the Mortgage Loans on the Cut-off Date, but in no event less than zero. Any
distribution of the Group I Senior Principal Distribution Amount or the Group II
Senior Principal Distribution Amount to the Holders of the related Class of
Class A Certificates will be deemed to also be a distribution in respect of the
Senior Principal Distribution Amount but in no event will the Senior Principal
Distribution Amount be less than the sum of the Group I Senior Principal
Distribution Amount and the Group II Senior Principal Distribution Amount.

                  "Servicer": Litton Loan Servicing LP, a Delaware limited
partnership, or any successor servicer appointed as herein provided, in its
capacity as Servicer hereunder.

                  "Servicer Affiliate": A Person (i) controlling, controlled by
or under common control with the Servicer or which is 50% or more owned by the
Servicer and (ii) which is qualified to service residential mortgage loans.

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

                  "Servicer Remittance Date": With respect to any Distribution
Date, one Business Day prior to such Distribution Date.

                  "Servicing Advances": All customary, reasonable and necessary
"out of pocket" costs and expenses incurred by the Servicer in the performance
of its servicing obligations, including, but not limited to, the cost of (i) the
preservation, restoration and protection of the Mortgaged Property, (ii) any
enforcement or judicial proceedings, including foreclosures, (iii) the
management and liquidation of the REO Property, (iv) compliance with the
obligations under Section 3.08 and (v) rebating any points and fees that are to
be reimbursed to a Mortgagor due to a Principal Prepayment.

                  "Servicing Fee": With respect to each Mortgage Loan (including
each REO Property) and for any calendar month, an amount equal to one month's
interest (or in the event of any payment of interest which accompanies a
Principal Prepayment in full made by the Mortgagor during such calendar month,
interest for the number of days covered by such payment of interest) at the
Servicing Fee Rate on the same principal amount on which interest on such
Mortgage Loan accrues for such calendar month.

                  "Servicing Fee Rate": With respect to each Mortgage Loan,
0.50% per annum.

                                     - 53 -
<PAGE>

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

                  "Servicing Rights Pledgee": One or more lenders, selected by
the Servicer, to which the Servicer may pledge and assign all of its right,
title and interest in, to and under this Agreement, including Wachovia Bank,
National Association as the representative of certain lenders.

                  "Servicing Standard": Shall mean the standards set forth in
Section 3.01.

                  "Special Hazard Losses": Realized Losses that result from
direct physical damage to Mortgaged Properties caused by natural disasters and
other hazards (i) which are not covered by hazard insurance policies (such as
earthquakes) and (ii) for which claims have been submitted and rejected by the
related hazard insurer and any shortfall in insurance proceeds for partial
damage due to the application of the co-insurance clauses contained in hazard
insurance policies.

                  "Startup Day":  As defined in Section 9.01(b) hereof.

                  "Stayed Funds": Any payment required to be made under the
terms of the Certificates and this Agreement but which is not remitted by the
Servicer because the Servicer is the subject of a proceeding under the
Bankruptcy Code and the making of such remittance is prohibited by Section 362
of the Bankruptcy Code.

                  "Stepdown Date": The earlier to occur of (x) the Distribution
Date on which the aggregate Certificate Principal Balance of the Class A
Certificates is zero and (y) the later to occur of (A) the Distribution Date in
November 2007 and (B) the first Distribution Date on which the Senior
Enhancement Percentage is greater than or equal to 39.00%.

                  "Subordinate Principal Distribution Amount": The Class M-1
Principal Distribution Amount, Class M-2 Principal Distribution Amount, Class
M-3 Principal Distribution Amount, Class B-1 Principal Distribution Amount,
Class B-2 Principal Distribution Amount, Class B-3 Principal Distribution Amount
or Class B-4 Principal Distribution Amount, as applicable

                  "Subsequent Recoveries": As of any Distribution Date, amounts
received by the Servicer (net of any expenses permitted to be reimbursed
pursuant to Section 3.05) or surplus amounts held by the 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 Mortgage Loan that was the subject
of a Final Recover Determination or an REO Disposition prior to the related
Prepayment Period that resulted in a Realized Loss.

                  "Substitution Adjustment Amount": As defined in Section
2.03(d) hereof.

                                     - 54 -
<PAGE>

                  "Targeted Overcollateralization Amount": As of any
Distribution Date, (x) prior to the Stepdown Date, 2.80% of the aggregate
Cut-off Date Principal Balance of the Mortgage Loans, (y) on and after the
Stepdown Date provided that a Trigger Event is not in effect, the lesser of (i)
2.80% of the aggregate Cut-off Date Principal Balance of the Mortgage Loans and
(ii) the greater of (A) 5.60% of the Pool Balance as of the last day of the
related Collection Period and (B) 0.50% of the aggregate Cut-off Date Principal
Balance of the Mortgage Loans and (z) on or after the Stepdown Date and if a
Trigger Event is in effect, the Targeted Overcollateralization Amount for the
immediately preceding Distribution Date.

                  "Tax Matters Person": The tax matters person appointed
pursuant to Section 9.01(e) hereof.

                  "Tax Returns": The federal income tax returns 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 the REMIC Taxable Income or Net Loss Allocation, or any successor
forms, to be filed on behalf of the Trust for each of the eight REMICs created
pursuant to this Agreement 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.

                  "Telerate Page 3750": The display page currently so designated
on the Bridge Telerate Service (or such other page as may replace the Telerate
Page 3750 page on that service for the purpose of displaying London interbank
offered rates of major banks).

                  "Termination Price":  As defined in Section 10.01(a) hereof.

                  "Trigger Event": With respect to any Distribution Date a
Trigger Event is in effect, if (i) the three-month rolling average of 60+ Day
Delinquent Loans (divided by the aggregate Principal Balance of the Mortgage
Loans as of the last day of the previous calendar month) equals or exceeds
43.00% of the Senior Enhancement Percentage or (ii) the aggregate amount of
Realized Losses incurred since the Cut-off Date through the last day of the
related Collection Period (reduced by the amount of Subsequent Recoveries
received since the Cut-off Date through the last day of the related Collection
Period) divided by the initial Pool Balance exceeds the applicable percentages
set forth below with respect to such Distribution Date:

         DISTRIBUTION DATE OCCURRING IN               PERCENTAGE
         ------------------------------               ----------
      November 2006 through October 2007                 2.00%
      November 2007 through October 2008                 3.00%
      November 2008 through October 2009                 4.75%
      November 2009 through October 2010                 6.25%
      November 2010 and thereafter                       7.25%

                  "Trust":  2004-CB7 Trust, the trust created hereunder.

                  "Trust Fund": All of the assets of the Trust, which is the
trust created hereunder consisting of REMIC 1, REMIC 2, REMIC 3, REMIC 4, REMIC
5, REMIC 6, the CAP Contracts and the Net WAC Rate Carryover Reserve Account.

                                     - 55 -
<PAGE>

                  "Trustee": U.S. Bank National Association, a national banking
association, or any successor Trustee appointed as herein provided.

                  "Trustee Fee": With respect to any Distribution Date, the
product of (x) one twelfth of the Trustee Fee Rate and (y) the aggregate of the
Principal Balances of all Mortgage Loans as of the opening of business on the
first day of the related Collection Period.

                  "Trustee Fee Rate": With respect to any Distribution Date,
0.006% per annum.

                  "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 of such REMIC Regular Interest. In each case, Uncertificated
Accrued Interest will be reduced by any Prepayment Interest Shortfalls and
Relief Act Interest Shortfalls (allocated to such REMIC Regular Interests based
on their respective entitlements to interest irrespective of any Prepayment
Interest Shortfalls and Relief Act Interest Shortfalls for such Distribution
Date).

                  "Uncertificated Principal Balance": With respect to each REMIC
Regular Interest, the amount of such REMIC Regular Interest outstanding as of
any date of determination. As of the Closing Date, the Uncertificated Principal
Balance of each 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 REMIC
Regular Interest shall be reduced by all distributions of principal made on such
REMIC Regular Interest on such Distribution Date pursuant to Section 4.03 and,
if and to the extent necessary and appropriate, shall be further reduced on such
Distribution Date by Realized Losses as provided in Section 4.03, and the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1ZZ shall be
increased by interest deferrals as provided in Section 4.03. The Uncertificated
Principal Balance of each REMIC Regular Interest that has an Uncertificated
Principal Balance shall never be less than zero.

                  "Uncertificated REMIC 1 Pass-Through Rate": With respect to
REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1AV1, REMIC 1 Regular
Interest LT1AV2A, REMIC 1 Regular Interest LT1AV2B, REMIC 1 Regular Interest
LT1AV2C, REMIC 1 Regular Interest LT1AF1, REMIC 1 Regular Interest LT1AF2, REMIC
1 Regular Interest LT1AF3, REMIC 1 Regular Interest LT1AF4, REMIC 1 Regular
Interest LT1AF5, REMIC 1 Regular Interest LT1M1, REMIC 1 Regular Interest LT1M2,
REMIC 1 Regular Interest LT1M3, REMIC 1 Regular Interest LT1B1, REMIC 1 Regular
Interest LT1B2, REMIC 1 Regular Interest LT1B3, REMIC 1 Regular Interest LT1B4,
REMIC 1 Regular Interest LT1ZZ, REMIC 1 Regular Interest LT1SUB, REMIC 1 Regular
Interest LT2SUB and REMIC 1 Regular Interest LT1XX, the weighted average of the
Net Mortgage Interest Rates of the Mortgage Loans. With respect to REMIC 1
Regular Interest LT1GRP, the weighted average of the Net Mortgage Interest Rates
of the Group I Mortgage Loans. With respect REMIC 1 Regular Interest LT2GRP, the
weighted average of the Net Mortgage Interest Rates of the Group II Mortgage
Loans.

                  "Underwriters": Citigroup Global Markets Inc. and Greenwich
Capital Markets, Inc., as underwriters with respect to the Offered Certificates.

                                     - 56 -
<PAGE>

                  "United States Person" or "U.S. Person": (i) A citizen or
resident of the United States, (ii) a corporation, partnership or other entity
treated as a corporation or partnership for United States federal income tax
purposes organized in or under the laws of the United States or any state
thereof or the District of Columbia (unless, in the case of a partnership,
Treasury regulations provide otherwise) or (iii) an estate the income of which
is includible in gross income for United States tax purposes, regardless of its
source, or (iv) 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 United
States persons have authority to control all substantial decisions of the trust.
Notwithstanding the preceding sentence, to the extent provided in Treasury
regulations, certain Trusts in existence on August 20, 1996, and treated as
United States persons prior to such date, that elect to continue to be treated
as United States persons will also be a U.S. Person.

                  "Unpaid Realized Loss Amount": For any Class of Class A
Certificate or Mezzanine Certificate and as to any Distribution Date, the excess
of (x) the aggregate Applied Realized Loss Amounts applied with respect to such
Class for all prior Distribution Dates over (y) the aggregate Realized Loss
Amortization Amounts with respect to such Class for all prior Distribution Dates
and reduced by the amount of the increase in the related Certificate Principal
Balance due to the receipt of Subsequent Recoveries as provided in Section 4.02.

                  "Value": With respect to any Mortgaged Property, the value
thereof as determined by an independent appraisal made at the time of the
origination of the related Mortgage Loan or the sale price, if the appraisal is
not available; except that, with respect to any Mortgage Loan that is a purchase
money mortgage loan, the lesser of (i) the value thereof as determined by an
independent appraisal made at the time of the origination of such Mortgage Loan,
if any, and (ii) the sales price of the related Mortgaged Property.

                  "Voting Rights": The portion of the voting rights of all of
the Certificates which is allocated to any Certificate. The Voting Rights
allocated among Holders of the Offered Certificates and the Mezzanine
Certificates shall be 98%, and shall be allocated among each such Class
according to the fraction, expressed as a percentage, the numerator of which is
the aggregate Certificate Principal Balance of all the Certificates of such
Class then outstanding and the denominator of which is the aggregate Certificate
Principal Balance of all the Class A Certificates and the Mezzanine Certificates
then outstanding. The Voting Rights allocated to each such Class of Certificates
shall be allocated among all holders of each such Class in proportion to the
outstanding Certificate Principal Balance of such Certificates; provided,
however, that any Certificate registered in the name of the Servicer, the
Depositor, the Trustee or any of its respective affiliates shall not be included
in the calculation of Voting Rights; provided that only such Certificates as are
known by a Responsible Officer of the Trustee to be so registered will be so
excluded. The percentage of all the Voting Rights allocated among the Holders of
the Class X Certificate shall be 2%. The Class N and Residual Certificates shall
have no Voting Rights.

                  "Written Order to Authenticate": A written order by which the
Depositor directs the Trustee to execute, authenticate and deliver the
Certificates.

                                     - 57 -
<PAGE>

                  Section 1.02 Accounting.

                  Unless otherwise specified herein, for the purpose of any
definition or calculation, whenever amounts are required to be netted,
subtracted or added or any distributions are taken into account such definition
or calculation and any related definitions or calculations shall be determined
without duplication of such functions.

                  Section 1.03 Allocation of Certain Interest Shortfalls.

                  For purposes of calculating the amount of the Accrued
Certificate Interest for the Class A Certificates, the Mezzanine Certificates
and the Class X/N Interest for any Distribution Date, (1) the aggregate amount
of any Prepayment Interest Shortfalls and any Relief Act Interest Shortfalls
incurred in respect of the Mortgage Loans for any Distribution Date shall be
allocated first, among the Class X/N Interest on a PRO RATA basis based on, and
to the extent of, one month's interest at the then applicable Pass-Through Rate
on the Notional Amount thereof and, thereafter, among the Class A Certificates
and the Mezzanine 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 and (2)
the aggregate amount of any Realized Losses and Net WAC Rate Carryover Amounts
incurred for any Distribution Date shall be allocated among the Class X/N
Interest on a PRO RATA basis based on, and to the extent of, one month's
interest at the then applicable Pass-Through Rate on the Notional Amount
thereof.

                  For purposes of calculating the amount of Uncertificated
Accrued Interest for the REMIC 1 Regular Interests for any Distribution Date:

                  (A) the REMIC 1 Marker Allocation Percentage of the aggregate
amount of any Prepayment Interest Shortfalls and the REMIC 1 Marker Allocation
Percentage of the aggregate amount of any Relief Act Interest Shortfalls
incurred in respect of the Mortgage Loans for any Distribution Date shall be
allocated among REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LTAV1,
REMIC 1 Regular Interest LTAV2A, REMIC 1 Regular Interest LTAV2B, REMIC 1
Regular Interest LTAV2C, REMIC 1 Regular Interest LT1AF1, REMIC 1 Regular
Interest LT1AF2, REMIC 1 Regular Interest LT1AF3, REMIC 1 Regular Interest
LT1AF4, REMIC 1 Regular Interest LT1AF5, REMIC 1 Regular Interest LT1M1, REMIC 1
Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC 1 Regular Interest
LT1B1, REMIC 1 Regular Interest LTB2, REMIC 1 Regular Interest LT1B3, REMIC 1
Regular Interest LTB4 and REMIC I Regular Interest LT1ZZ PRO RATA based on, and
to the extent of, one month's interest at the then applicable respective
Uncertificated REMIC 1 Pass-Through Rate on the respective Uncertificated
Principal Balance of each such REMIC 1 Regular Interest; and

                  (B) the REMIC I Sub WAC Allocation Percentage of the aggregate
amount of any Prepayment Interest Shortfalls and the REMIC I Sub WAC Allocation
of the aggregate amount of any Percentage Relief Act Interest Shortfalls
incurred in respect of the Mortgage Loans for any Distribution Date shall be
allocated first, to Uncertificated Accrued Interest payable to REMIC 1 Regular
Interest LT1SUB, REMIC 1 Regular Interest LT1GRP, REMIC 1 Regular Interest
LT2SUB, REMIC 1 Regular Interest LT2GRP and REMIC 1 Regular Interest LT1XX, PRO
RATA based on, and to the extent of, one month's interest at the then

                                     - 58 -
<PAGE>

applicable respective Uncertificated REMIC 1 Pass-Through Rate on the respective
Uncertificated Principal Balance of each such REMIC 1 Regular Interest.

                  For purposes of calculating the amount of Uncertificated
Accrued Interest for the REMIC 1 Regular Interests for any Distribution Date,
the aggregate amount of any Prepayment Interest Shortfalls and any Relief Act
Interest Shortfalls incurred in respect of the Mortgage Loans for any
Distribution Date shall be allocated to the Class B-2 Interest to the extent
allocated to the Class B-2 Certificates, to the Class B-3 Interest to the extent
allocated to the Class B-3 Certificates, to the Class B-4 Interest to the extent
allocated to the Class B-4 Certificates and to the Class X/N Certificates to the
extent allocated to the Class X/N Interest.

                                     - 59 -
<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

                  Section 2.01 Conveyance of Mortgage Loans.

                  The Depositor, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey to the
Trustee, on behalf of the Trust, without recourse for the benefit of the
Certificateholders all the right, title and interest of the Depositor, including
any security interest therein for the benefit of the Depositor, in and to (i)
each Mortgage Loan identified on the Mortgage Loan Schedule, including the
related Cut-off Date Principal Balance, all interest accruing thereon after the
Cut-off Date and all collections in respect of interest and principal due after
the Cut-off Date; (ii) property which secured each such Mortgage Loan and which
has been acquired by foreclosure or deed in lieu of foreclosure; (iii) its
interest in any insurance policies in respect of the Mortgage Loans; (iv) all
proceeds of any of the foregoing; (v) the rights of the Depositor under the
Mortgage Loan Purchase Agreement and (vi) all other assets included or to be
included in the Trust Fund; provided, however, so long as the Servicer is an FHA
Approved Mortgagee, the Commissioner of HUD shall have no obligation to
recognize or deal with any person other than the Servicer with respect to FHA
Insurance. Such assignment includes all interest and principal due to the
Depositor or the Servicer after the Cut off Date with respect to the Mortgage
Loans.

                  In connection with such transfer and assignment, the Seller,
on behalf of the Depositor, does hereby deliver or cause to be delivered to, and
deposit with the Trustee, or its designated agent (the "Custodian"), the
following documents or instruments with respect to each Mortgage Loan (a
"Mortgage File") so transferred and assigned:

         (i)      the original Mortgage Note, endorsed either (A) in blank or
                  (B) in the following form: "Pay to the order of U.S. Bank
                  National Association, as Trustee--C-BASS Mortgage Loan
                  Asset-Backed Certificates, Series 2004-CB7, without recourse,"
                  or with respect to any lost Mortgage Note, an original Lost
                  Note Affidavit, together with a copy of the related Mortgage
                  Note;

         (ii)     the original Mortgage with evidence of recording thereon, and
                  the original recorded power of attorney, if the Mortgage was
                  executed pursuant to a power of attorney, with evidence of
                  recording thereon or, if such Mortgage or power of attorney
                  has been submitted for recording but has not been returned
                  from the applicable public recording office, has been lost or
                  is not otherwise available, a copy of such Mortgage or power
                  of attorney, as the case may be, certified to be a true and
                  complete copy of the original submitted for recording;

         (iii)    an original Assignment of Mortgage, in form and substance
                  acceptable for recording. The Mortgage shall be assigned
                  either (A) in blank or (B) to "U.S. Bank National Association,
                  as Trustee as Trustee--C-BASS Mortgage Loan Asset-Backed
                  Certificates, Series 2004-CB7, without recourse";

                                     - 60 -
<PAGE>

         (iv)     an original or a certified copy of any intervening assignment
                  of Mortgage showing a complete chain of assignments;

         (v)      the original or a certified copy of lender's title insurance
                  policy;

         (vi)     the original or copies of each assumption, modification,
                  written assurance or substitution agreement, if any; and

         (vii)    for each FHA Loan, the original Mortgage Insurance
                  Certificate.

                  If any of the documents referred to in Section 2.01(ii), (iii)
or (iv) above has as of the Closing Date been submitted for recording but either
(x) has not been returned from the applicable public recording office or (y) has
been lost or such public recording office has retained the original of such
document, the obligations of the Seller to deliver such documents shall be
deemed to be satisfied upon (1) delivery to the Trustee or the Custodian no
later than the Closing Date, of a copy of each such document certified by the
Seller in the case of (x) above or the applicable public recording office in the
case of (y) above to be a true and complete copy of the original that was
submitted for recording and (2) if such copy is certified by the Seller,
delivery to the Trustee or the Custodian, promptly upon receipt thereof of
either the original or a copy of such document certified by the applicable
public recording office to be a true and complete copy of the original. The
Seller shall deliver or cause to be delivered to the Trustee or the Custodian
promptly upon receipt thereof any other documents constituting a part of a
Mortgage File received with respect to any Mortgage Loan, including, but not
limited to, any original documents evidencing an assumption or modification of
any Mortgage Loan.

                  Upon discovery or receipt of notice of any materially
defective document in, or that a document is missing from, a Mortgage File, the
Seller shall have 120 days to cure such defect or 150 days following the Closing
Date, in the case of missing Mortgages or Assignments or deliver such missing
document to the Trustee or the Custodian. If the Seller does not cure such
defect or deliver such missing document within such time period, the Seller
shall either repurchase or substitute for such Mortgage Loan in accordance with
Section 2.03.

                  The Servicer shall cause the Assignments of Mortgage which
were delivered in blank to be completed and shall cause all Assignments referred
to in Section 2.01(iii) hereof and, to the extent necessary, in Section 2.01(iv)
hereof to be recorded. The Servicer shall be required to deliver such
assignments for recording within 30 days of the Closing Date. The Servicer shall
furnish the Trustee, or its designated agent, with a copy of each Assignment of
Mortgage submitted for recording. In the event that any such Assignment is lost
or returned unrecorded because of a defect therein, the Servicer 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.

                  In the event that any Assignments of Mortgage are not recorded
or are improperly recorded, the Servicer shall have no liability for its failure
to receive or act on notices not received related to such Assignment of
Mortgage.

                  In the event that any Mortgage Note is endorsed in blank as of
the Closing Date, promptly following the Closing Date the Servicer shall cause
to be completed such endorsements

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<PAGE>

in the following form: "Pay to the order of U.S. Bank National Association, as
Trustee--C-BASS Mortgage Loan Asset-Backed Certificates, Series 2004-CB7,
without recourse."

                  The Depositor herewith delivers to the Trustee executed copies
of the Mortgage Loan Purchase Agreement.

                  The parties hereto understand and agree that it is not
intended that any Mortgage Loan be included in the Trust that is a "High-Cost
Home Loan" as defined by the Homeownership and Equity Protection Act of 1994 or
any other applicable predatory or abusive lending laws.

                  Section 2.02 Acceptance by the Trustee.

                  The Trustee acknowledges the receipt of, subject to the
provisions of Section 2.01 and subject to the review described below and any
exceptions noted on the exception report described in the next paragraph below,
the documents referred to in Section 2.01 above and all other assets included in
the definition of "Trust Fund" and declares that it holds and will hold such
documents and the other documents delivered to it constituting a Mortgage File,
and that it holds or will hold all such assets and such other assets included in
the definition of "Trust Fund" in trust for the exclusive use and benefit of all
present and future Certificateholders.

                  The Trustee agrees to execute and deliver (or cause the
Custodian to execute and deliver) to the Depositor on or prior to the Closing
Date an acknowledgment of receipt of the original Mortgage Note (with any
exceptions noted), substantially in the form attached as Exhibit F-3 hereto.

                  The Trustee agrees, for the benefit of the Certificateholders,
to review (or cause the Custodian to review) each Mortgage File within 60 days
after the Closing Date (or, with respect to any document delivered after the
Startup Day, within 60 days of receipt and with respect to any Qualified
Substitute Mortgage, within 60 days after the assignment thereof) and to certify
(or cause the Custodian to certify) in substantially the form attached hereto as
Exhibit F-1 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 the exception report annexed thereto as not being covered by such
certification), (i) all documents required to be delivered to it pursuant to
Section 2.01 of this Agreement are in its possession, (ii) such documents have
been reviewed by it and have not been mutilated, damaged or torn and relate to
such Mortgage Loan, (iii) based on its examination and only as to the foregoing,
the information set forth in the Mortgage Loan Schedule that corresponds to
items (1), (2), (3), (5) (13) and (26) (but only as to whether the Mortgage Loan
as a Prepayment Charge) of the Mortgage Loan Schedule accurately reflects
information set forth in the Mortgage File, (iv) all Assignments of Mortgage or
intervening assignments of mortgage, as applicable, have been submitted for
recording and (v) each Mortgage Note has been endorsed as provided in Section
2.01(i) of this Agreement and each Mortgage has been assigned in accordance with
Section 2.01(iii) of this Agreement. It is herein acknowledged that, in
conducting such review, the Trustee (or the Custodian, as applicable) is under
no duty or obligation to inspect, review or examine any such documents,
instruments, certificates or other papers to determine that they are genuine,
enforceable, or

                                     - 62 -
<PAGE>

appropriate for the represented purpose or that they have actually been recorded
or that they are other than what they purport to be on their face.

                  Prior to the first anniversary date of this Agreement the
Trustee shall deliver (or cause the Custodian to deliver) to the Depositor and
the Servicer a final certification in the form annexed hereto as Exhibit F-2
evidencing the completeness of the Mortgage Files, with any applicable
exceptions noted thereon.

                  If in the process of reviewing the Mortgage Files and making
or preparing, as the case may be, the certifications referred to above, the
Trustee (or the Custodian, as applicable) finds any document or documents
constituting a part of a Mortgage File to be missing or defective in any
material respect, at the conclusion of its review the Trustee, upon its
notification by the Custodian, if applicable, shall so notify the Seller, the
Depositor and the Servicer. In addition, upon the discovery by the Seller,
Depositor, the Trustee or the Servicer (or upon receipt by the Trustee of
written notification of such breach) of a breach of any of the representations
and warranties made by the Seller in the related Mortgage Loan Purchase
Agreement in respect of any Mortgage Loan which materially adversely affects
such Mortgage Loan or the interests of the related Certificateholders in such
Mortgage Loan, the party discovering such breach shall give prompt written
notice to the other parties.

                  The Depositor and the Trustee intend that the assignment and
transfer herein contemplated constitute a sale of the Mortgage Loans and the
Related Documents, conveying good title thereto free and clear of any liens and
encumbrances, from the Depositor to the Trustee and that such property not be
part of the Depositor's estate or property of the Depositor in the event of any
insolvency by the Depositor. In the event that such conveyance is deemed to be,
or to be made as security for, a loan, the parties intend that the Depositor
shall be deemed to have granted and does hereby grant to the Trustee, on behalf
of the Trust, a first priority perfected security interest in all of the
Depositor's right, title and interest in and to the Mortgage Loans and the
Related Documents, and that this Agreement shall constitute a security agreement
under applicable law.

                  Section 2.03 Repurchase or Substitution of Mortgage Loans by
                               the Seller.

                  (a) Upon discovery or receipt of written notice of any
materially defective document in, or that a document is missing from, a Mortgage
File or of the breach by the Seller of any representation, warranty or covenant
under the Mortgage Loan Purchase Agreement or in Section 2.04 in respect of any
Mortgage Loan which materially adversely affects the value of such Mortgage Loan
or the interest therein of the Certificateholders, the Trustee (or the
Custodian, as applicable) shall promptly notify the Seller and the Servicer of
such defect, missing document or breach and request that the Seller deliver such
missing document or cure such defect or breach within 120 days or 150 days
following the Closing Date, in the case of missing Mortgages or Assignments from
the date the Seller was notified of such missing document, defect or breach, and
if the Seller does not deliver such missing document or cure such defect or
breach in all material respects during such period, the Trustee shall enforce
the Seller's obligation under the Mortgage Loan Purchase Agreement and inform
the Seller of its obligation to repurchase such Mortgage Loan from the Trust
Fund at the Purchase Price on or prior to the Determination Date following the
expiration of such 120 day period (subject to

                                     - 63 -
<PAGE>

Section 2.03(e)); provided that, in connection with any such breach that could
not reasonably have been cured within such 120 day or 150 day period, if the
Seller shall have commenced to cure such breach within such 120 day or 150 day
period, the Seller shall be permitted to proceed thereafter diligently and
expeditiously to cure the same within the additional period provided under the
Mortgage Loan Purchase Agreement. The Purchase Price for the repurchased
Mortgage Loan shall be deposited in the Collection Account, and the Trustee,
upon receipt of written certification from the Servicer of such deposit, shall
release to the Seller the related Mortgage File and shall execute and deliver
such instruments of transfer or assignment, in each case without recourse,
representation or warranty, as the Seller shall furnish to it and as shall be
necessary to vest in the Seller any Mortgage Loan released pursuant hereto and
the Trustee shall have no further responsibility with regard to such Mortgage
File. In lieu of repurchasing any such Mortgage Loan as provided above, the
Seller may cause such Mortgage Loan to be removed from the Trust Fund (in which
case it shall become a Defective Mortgage Loan) and substitute one or more
Eligible Substitute Mortgage Loans in the manner and subject to the limitations
set forth in Section 2.03(d). It is understood and agreed that the obligation of
the Seller to cure or to repurchase (or to substitute for) any Mortgage Loan as
to which a document is missing, a material defect in a constituent document
exists or as to which such a breach has occurred and is continuing shall
constitute the sole remedy against the Seller respecting such omission, defect
or breach available to the Trustee on behalf of the Certificateholders.

                  (b) [Reserved].

                  (c) Within 90 days of the earlier of discovery by the Servicer
or receipt of notice by the Servicer of the breach of any representation,
warranty or covenant of the Servicer set forth in Section 2.05 which materially
and adversely affects the interests of the Certificateholders in any Mortgage
Loan, the Servicer shall cure such breach in all material respects.

                  (d) Any substitution of Eligible Substitute Mortgage Loans for
Defective Mortgage Loans made pursuant to Section 2.03(a) must be effected prior
to the last Business Day that is within two years after the Closing Date. As to
any Defective Mortgage Loan for which the Seller substitutes an Eligible
Substitute Mortgage Loan or Loans, such substitution shall be effected by the
Seller delivering to the Trustee, for such Eligible Substitute Mortgage Loan or
Loans, the Mortgage Note, the Mortgage, the Assignment to the Trustee, and such
other documents and agreements, with all necessary endorsements thereon, as are
required by Section 2.01, together with an Officers' Certificate providing that
each such Eligible Substitute Mortgage Loan satisfies the definition thereof and
specifying the Substitution Adjustment Amount (as described below), if any, in
connection with such substitution. The Trustee shall acknowledge receipt for
such Eligible Substitute Mortgage Loan or Loans and, within ten Business Days
thereafter, shall review such documents as specified in Section 2.02 and deliver
(or cause the Custodian to deliver) to the Servicer, with respect to such
Eligible Substitute Mortgage Loan or Loans, a certification substantially in the
form attached hereto as Exhibit F-1, with any applicable exceptions noted
thereon. Within one year of the date of substitution, the Trustee shall deliver
(or cause the Custodian to deliver) to the Servicer a certification
substantially in the form of Exhibit F-2 hereto with respect to such Eligible
Substitute Mortgage Loan or Loans, with any applicable exceptions noted thereon.
Monthly Payments due with respect to Eligible Substitute Mortgage Loans in the
month of substitution are not part of the Trust Fund and will be

                                     - 64 -
<PAGE>

retained by the Seller. For the month of substitution, distributions to
Certificateholders will reflect the collections and recoveries in respect of
such Defective Mortgage Loan in the Collection Period preceding the month of
substitution and the Depositor or the Seller, as the case may be, shall
thereafter be entitled to retain all amounts subsequently received in respect of
such Defective Mortgage Loan. The Seller shall give or cause to be given written
notice to the Certificateholders that such substitution has taken place, shall
amend the Mortgage Loan Schedule to reflect the removal of such Defective
Mortgage Loan from the terms of this Agreement and the substitution of the
Eligible Substitute Mortgage Loan or Loans and shall deliver a copy of such
amended Mortgage Loan Schedule to the Trustee and the Custodian. Upon such
substitution, such Eligible Substitute Mortgage Loan or Loans shall constitute
part of the Mortgage Pool and shall be subject in all respects to the terms of
this Agreement and, in the case of a substitution effected by the Seller, the
Mortgage Loan Purchase Agreement, including, in the case of a substitution
effected by the Seller all applicable representations and warranties thereof
included in the Mortgage Loan Purchase Agreement and all applicable
representations and warranties thereof set forth in Section 2.04, in each case
as of the date of substitution.

                  For any month in which the Seller substitutes one or more
Eligible Substitute Mortgage Loans for one or more Defective Mortgage Loans, the
Servicer will determine the amount (the "Substitution Adjustment Amount"), if
any, by which the aggregate Purchase Price of all such Defective Mortgage Loans
exceeds the aggregate, as to each such Eligible Substitute Mortgage Loan, of the
principal balance thereof as of the date of substitution, together with one
month's interest on such principal balance at the applicable Net Mortgage
Interest Rate. On the date of such substitution, the Seller will deliver or
cause to be delivered to the Servicer for deposit in the Collection Account an
amount equal to the Substitution Adjustment Amount, if any, and the Trustee,
upon receipt of the related Eligible Substitute Mortgage Loan or Loans and
certification by the Servicer of such deposit, shall release to the Seller the
related Mortgage File or Files and shall execute and deliver such instruments of
transfer or assignment, in each case without recourse, representation or
warranty, as the Seller shall deliver to it and as shall be necessary to vest
therein any Defective Mortgage Loan released pursuant hereto.

                  In addition, the Seller shall obtain at its own expense and
deliver to the Trustee an Opinion of Counsel to the effect that such
substitution will not cause (a) any federal tax to be imposed on the Trust Fund,
including without limitation, any federal tax imposed on "prohibited
transactions" under Section 860F(a)(l) of the Code or on "contributions after
the startup date" under Section 860G(d)(l) of the Code, or (b) any REMIC to fail
to qualify as a REMIC at any time that any Certificate is outstanding. If such
Opinion of Counsel can not be delivered, then such substitution may only be
effected at such time as the required Opinion of Counsel can be given.

                  (e) Upon discovery by the Seller, the Servicer or the Trustee
that any Mortgage Loan does not constitute a "qualified mortgage" within the
meaning of Section 860G(a)(3) of the Code, the party discovering such fact shall
within two Business Days give written notice thereof to the other parties. In
connection therewith, the Seller shall repurchase or, subject to the limitations
set forth in Section 2.03(d), substitute one or more Eligible Substitute
Mortgage Loans for the affected Mortgage Loan within 90 days of the earlier of
discovery or receipt of such notice with respect to such affected Mortgage Loan.
In addition, upon discovery that a Mortgage Loan is defective in a manner that
would cause it to be a "defective obligation"

                                     - 65 -
<PAGE>

within the meaning of Treasury regulations relating to REMICs, the Seller shall
cure the defect or make the required purchase or substitution no later than 90
days after the discovery of the defect. Any such repurchase or substitution
shall be made in the same manner as set forth in Section 2.03(a), if made by the
Seller. The Trustee shall reconvey to the Seller the Mortgage Loan to be
released pursuant hereto in the same manner, and on the same terms and
conditions, as it would a Mortgage Loan repurchased for breach of a
representation or warranty.

                  Notwithstanding anything to the contrary contained herein, the
parties hereto acknowledge that the functions of the Trustee with respect to the
custody, acceptance, inspection and release of the Mortgage Files pursuant to
Sections 2.01, 2.02 and 2.03 and preparation and delivery of the certifications
in the form of Exhibit F-1, Exhibit F-2 and Exhibit F-3 shall be performed by
the Custodian pursuant to the terms and conditions of the Custodial Agreement.
The fees and expenses of the Custodian shall be paid by the Servicer.

                  Section 2.04 Representations and Warranties of the Seller with
Respect to the Mortgage Loans.

                  The Seller hereby represents and warrants to the Trustee for
the benefit of the Certificateholders and the Depositor that as of the Closing
Date or as of such other date specifically provided herein:

                  (a) The representations and warranties made by the Seller
pursuant to Section 3.01 of the Mortgage Loan Purchase Agreement are hereby
being made to the Trustee and are true and correct as of the Closing Date.

                  (b) Any written agreement between the Mortgagor in respect of
a Mortgage Loan and the Servicer modifying such Mortgagor's obligation to make
payments under the Mortgage Loan (such modified Mortgage Loan, a "Modified
Mortgage Loan") involved the application of the Seller's underwriting standards
or some assessment of the Mortgagor's ability to repay the Modified Mortgage
Loan.

                  With respect to the representations and warranties set forth
in this Section 2.04 that are made to the best of the Seller's knowledge or as
to which the Seller has no knowledge, if it is discovered by the Depositor, the
Seller, the Servicer, the Trustee or the Custodian that the substance of such
representation and warranty is inaccurate and such inaccuracy materially and
adversely affects the value of the related Mortgage Loan or the interest therein
of the Certificateholders then, notwithstanding the Seller's lack of knowledge
with respect to the substance of such representation and warranty being
inaccurate at the time the representation or warranty was made, such inaccuracy
shall be deemed a breach of the applicable representation or warranty.

                  Upon discovery by the Depositor, the Seller, the Servicer, the
Trustee or the Custodian of a breach of any of the representations and
warranties contained in this Section that materially and adversely affects the
value of any Mortgage Loan or the interest therein of the Certificateholders,
the party discovering the breach shall give prompt written notice to the others
and in no event later than two Business Days from the date of such discovery.
Within ninety days of its discovery or its receipt of notice of any such missing
or materially defective

                                     - 66 -
<PAGE>

documentation or any such breach of a representation or warranty, the Seller
shall promptly deliver such missing document or cure such defect or breach in
all material respects, or in the event such defect or breach cannot be cured,
the Seller shall repurchase the affected Mortgage Loan or cause the removal of
such Mortgage Loan from the Trust Fund and substitute for it one or more
Eligible Substitute Mortgage Loans, in either case, in accordance with Section
2.03.

                  It is understood and agreed that the representations and
warranties set forth in this Section 2.04 shall survive delivery of the Mortgage
Files to the Trustee and shall inure to the benefit of the Certificateholders
and the Depositor notwithstanding any restrictive or qualified endorsement or
assignment. It is understood and agreed that the obligations of the Seller set
forth in Section 2.03(a) to cure, substitute for or repurchase a Mortgage Loan
pursuant to the Mortgage Loan Purchase Agreement constitute the sole remedies
available to the Depositor and to the Certificateholders or to the Trustee on
their behalf respecting a breach of the representations and warranties contained
in this Section 2.04.

                  Section 2.05 Representations, Warranties and Covenants of the
Servicer.

                  The Servicer hereby represents, warrants and covenants to the
Trustee, for the benefit of the Certificateholders and to the Depositor that as
of the Closing Date or as of such date specifically provided herein:

                    (i) The Servicer is duly organized, validly existing, and in
               good standing under the laws of the jurisdiction of its formation
               and has all licenses necessary to carry on its business as now
               being conducted, except for such licenses, certificates and
               permits the absence of which, individually or in the aggregate,
               would not have a material adverse effect on the ability of the
               Servicer to conduct its business as it is presently conducted,
               and is licensed, qualified and in good standing in the states
               where the Mortgaged Property is located if the laws of such state
               require licensing or qualification in order to conduct business
               of the type conducted by the Servicer or to ensure the
               enforceability or validity of each Mortgage Loan; the Servicer
               has the 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, subject to applicable bankruptcy, insolvency,
               reorganization, moratorium or other similar laws affecting the
               enforcement of creditors' rights generally; 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;

                    (ii) The consummation of the transactions contemplated by
               this Agreement are in the ordinary course of business of the
               Servicer and will not result in the breach of any term or
               provision of the certificate of formation or the partnership
               agreement of the Servicer or result in the breach of any term or
               provision of, or conflict with or constitute a default under or
               result in the acceleration of any obligation under, any
               agreement, indenture or loan or credit agreement or other
               instrument to which the Servicer or its

                                     - 67 -
<PAGE>

               property is subject, or result in the violation of any law, rule,
               regulation, order, judgment or decree to which the Servicer or
               its property is subject;

                    (iii) The Servicer is an approved seller/servicer of
               conventional mortgage loans for Fannie Mae, and is an FHA
               Approved Mortgagee in good standing to service mortgages and has
               not been suspended as a mortgagee or servicer by the FHA and has
               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, and shall remain for as long as
               it is servicing the Mortgage Loans hereunder, in good standing as
               a FHA Approved Mortgagee and to service mortgage loans for HUD,
               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 HUD, Fannie Mae, Freddie
               Mac or FHA eligibility requirements or which would require
               notification to any of HUD, Fannie Mae, Freddie Mac or FHA;

                    (iv) This Agreement, and all documents and instruments
               contemplated hereby which are executed and delivered by the
               Servicer, constitute and will constitute valid, legal and binding
               obligations of the Servicer, enforceable in accordance with their
               respective terms, except as the enforcement thereof may be
               limited by applicable bankruptcy laws and general principles of
               equity;

                    (v) The Servicer does not believe, nor does it have any
               reason or cause to believe, that it cannot perform each and every
               covenant contained in this Agreement;

                    (vi) There is no action, suit, proceeding or investigation
               pending or, to its knowledge, threatened against the Servicer
               that, either individually 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 that would
               draw into question the validity or enforceability of this
               Agreement or of any action taken or to be taken in connection
               with the obligations of the Servicer contemplated herein, or that
               would be likely to impair materially the ability of the Servicer
               to perform under the terms of this Agreement;

                    (vii) No consent, approval 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 the consummation of the
               transactions contemplated by this Agreement, except for such
               consents, approvals, authorizations and orders, if any, that have
               been obtained;

                    (viii) Neither this Agreement nor any information,
               certificate of an officer, statement furnished in writing or
               report delivered to the Trustee by the Servicer in connection
               with the transactions contemplated hereby contains or will
               contain any untrue statement of a material fact or omits or will
               omit to state a material fact necessary in order to make the
               statements contained therein, in light of the circumstances under
               which they were made, not misleading; and

                                     - 68 -
<PAGE>

                    (ix) The Servicer has accurately and fully reported, and
               will continue to accurately and fully report, its borrower credit
               files to each of the credit repositories in a timely manner.

                  It is understood and agreed that the representations,
warranties and covenants set forth in this Section 2.05 shall survive delivery
of the Mortgage Files to the Trustee and shall inure to the benefit of the
Trustee, the Depositor and the Certificateholders. Upon discovery by any of the
Depositor, the Servicer, the Seller or the Trustee of a breach of any of the
foregoing representations, warranties and covenants which materially and
adversely affects the value of any Mortgage Loan or the interests therein of the
Certificateholders, the party discovering such breach shall give prompt written
notice (but in no event later than two Business Days following such discovery)
to the other parties hereto.

                  Section 2.06 Representations and Warranties of the Depositor.

                  The Depositor represents and warrants to the Trust and the
Trustee on behalf of the Certificateholders as follows:

                    (i) This Agreement constitutes a legal, valid and binding
               obligation of the Depositor, enforceable against the Depositor in
               accordance with its terms, except as enforceability may be
               limited by applicable bankruptcy, insolvency, reorganization,
               moratorium or other similar laws now or hereafter in effect
               affecting the enforcement of creditors' rights in general and
               except as such enforceability may be limited by general
               principles of equity (whether considered in a proceeding at law
               or in equity);

                    (ii) Immediately prior to the sale and assignment by the
               Depositor to the Trustee on behalf of the Trust of each Mortgage
               Loan, the Depositor had good and marketable title to each
               Mortgage Loan (insofar as such title was conveyed to it by the
               Seller) subject to no prior lien, claim, participation interest,
               mortgage, security interest, pledge, charge or other encumbrance
               or other interest of any nature;

                    (iii) As of the Closing Date, the Depositor has transferred
               all right, title interest in the Mortgage Loans to the Trustee on
               behalf of the Trust;

                    (iv) The Depositor has not transferred the Mortgage Loans to
               the Trustee on behalf of the Trust with any intent to hinder,
               delay or defraud any of its creditors;

                    (v) The Depositor has been duly incorporated and is validly
               existing as a corporation in good standing under the laws of the
               State of Delaware, with full corporate power and authority to own
               its assets and conduct its business as presently being conducted;

                    (vi) The Depositor is not in violation of its certificate of
               incorporation or by-laws or in default in the performance or
               observance of any material obligation, agreement, covenant or
               condition contained in any contract, indenture, mortgage, loan
               agreement, note, lease or other instrument to which the Depositor
               is a party or by which it or its properties may be bound, which
               default might result in any material adverse changes in the
               financial condition, earnings, affairs or business of the
               Depositor or which

                                     - 69 -
<PAGE>

               might materially and adversely affect the properties or assets,
               taken as a whole, of the Depositor;

                    (vii) The execution, delivery and performance of this
               Agreement by the Depositor, and the consummation of the
               transactions contemplated thereby, do not and will not result in
               a material breach or violation of any of the terms or provisions
               of, or, to the knowledge of the Depositor, constitute a default
               under, any indenture, mortgage, deed of trust, loan agreement or
               other agreement or instrument to which the Depositor is a party
               or by which the Depositor is bound or to which any of the
               property or assets of the Depositor is subject, nor will such
               actions result in any violation of the provisions of the articles
               of incorporation or by-laws of the Depositor or, to the best of
               the Depositor's knowledge without independent investigation, any
               statute or any order, rule or regulation of any court or
               governmental agency or body having jurisdiction over the
               Depositor or any of its properties or assets (except for such
               conflicts, breaches, violations and defaults as would not have a
               material adverse effect on the ability of the Depositor to
               perform its obligations under this Agreement);

                    (viii) To the best of the Depositor's knowledge without any
               independent investigation, no consent, approval, authorization,
               order, registration or qualification of or with any court or
               governmental agency or body of the United States or any other
               jurisdiction is required for the issuance of the Certificates, or
               the consummation by the Depositor of the other transactions
               contemplated by this Agreement, except such consents, approvals,
               authorizations, registrations or qualifications as (a) may be
               required under State securities or Blue Sky laws, (b) have been
               previously obtained or (c) the failure of which to obtain would
               not have a material adverse effect on the performance by the
               Depositor of its obligations under, or the validity or
               enforceability of, this Agreement; and

                    (ix) There are no actions, proceedings or investigations
               pending before or, to the Depositor's knowledge, threatened by
               any court, administrative agency or other tribunal to which the
               Depositor is a party or of which any of its properties is the
               subject: (a) which if determined adversely to the Depositor would
               have a material adverse effect on the business, results of
               operations or financial condition of the Depositor; (b) asserting
               the invalidity of this Agreement or the Certificates; (c) seeking
               to prevent the issuance of the Certificates or the consummation
               by the Depositor of any of the transactions contemplated by this
               Agreement, as the case may be; (d) which might materially and
               adversely affect the performance by the Depositor of its
               obligations under, or the validity or enforceability of, this
               Agreement.

                  Section 2.07 Representations and Warranties of the Seller.

                  The Seller hereby represents and warrants to the Trust and the
Trustee on behalf of the Certificateholders that as of the Closing Date or as of
such date specifically provided herein:

                    (i) The Seller is duly organized, validly existing and in
               good standing as a limited liability company under the laws of
               the State of Delaware and has the power and

                                     - 70 -
<PAGE>
               authority to own its assets and to transact the business in which
               it is currently engaged. The Seller is duly qualified to do
               business and is in good standing in each jurisdiction in which
               the character of the business transacted by it or properties
               owned or leased by it requires such qualification and in which
               the failure to so qualify would have a material adverse effect on
               (a) its business, properties, assets or condition (financial or
               other), (b) the performance of its obligations under this
               Agreement, (c) the value or marketability of the Mortgage Loans,
               or (d) its ability to foreclose on the related Mortgaged
               Properties.

                    (ii) The Seller has the power and authority to make,
               execute, deliver and perform this Agreement and to consummate all
               of the transactions contemplated hereunder and has taken all
               necessary action to authorize the execution, delivery and
               performance of this Agreement. When executed and delivered, this
               Agreement will constitute the Seller's legal, valid and binding
               obligations enforceable in accordance with its terms, except as
               enforcement of such terms may be limited by (1) bankruptcy,
               insolvency, reorganization, receivership, moratorium or similar
               laws affecting the enforcement of creditors' rights generally and
               by the availability of equitable remedies, (2) general equity
               principles (regardless of whether such enforcement is considered
               in a proceeding in equity or at law) or (3) public policy
               considerations underlying the securities laws, to the extent that
               such policy considerations limit the enforceability of the
               provisions of this Agreement which purport to provide
               indemnification from securities laws liabilities.

                    (iii) The Seller holds all necessary licenses, certificates
               and permits from all governmental authorities necessary for
               conducting its business as it is presently conducted, except for
               such licenses, certificates and permits the absence of which,
               individually or in the aggregate, would not have a material
               adverse effect on the ability of the Seller to conduct its
               business as it is presently conducted. It is not required to
               obtain the consent of any other party or any consent, license,
               approval or authorization from, or registration or declaration
               with, any governmental authority, bureau or agency in connection
               with the execution, delivery, performance, validity or
               enforceability of this Agreement, except for such consents,
               licenses, approvals or authorizations, or registrations or
               declarations as shall have been obtained or filed, as the case
               may be, prior to the Closing Date.

                    (iv) The execution, delivery and performance of this
               Agreement by the Seller will not conflict with or result in a
               breach of, or constitute a default under, any provision of any
               existing law or regulation or any order or decree of any court
               applicable to the Seller or any of its properties or any
               provision of its Limited Liability Company Agreement, or
               constitute a material breach of, or result in the creation or
               imposition of any lien, charge or encumbrance upon any of its
               properties pursuant to any mortgage, indenture, contract or other
               agreement to which it is a party or by which it may be bound.

                    (v) No certificate of an officer, written statement or
               report delivered pursuant to the terms hereof by the Seller
               contains any untrue statement of a material fact or omits to
               state any material fact necessary to make the certificate,
               statement or report not misleading.

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<PAGE>

                    (vi) The transactions contemplated by this Agreement are in
               the ordinary course of the Seller's business.

                    (vii) The Seller is not insolvent, nor will the Seller be
               made insolvent by the transfer of the Mortgage Loans to the
               Depositor, nor is the Seller aware of any pending insolvency.

                    (viii) The Seller is not in violation of, and the execution
               and delivery of this Agreement by it and its performance and
               compliance with the terms of this Agreement will not constitute a
               violation with respect to any order or decree of any court, or
               any order or regulation of any federal, state, municipal or
               governmental agency having jurisdiction, which violation would
               materially and adversely affect the Seller's condition (financial
               or otherwise) or operations or any of the Seller's properties, or
               materially and adversely affect the performance of any of its
               duties hereunder.

                    (ix) There are no actions or proceedings against, or
               investigations of, the Seller pending or, to its knowledge,
               threatened, before any court, administrative agency or other
               tribunal (i) that, if determined adversely, would prohibit the
               Seller from entering into this Agreement, (ii) seeking to prevent
               the consummation of any of the transactions contemplated by this
               Agreement or (iii) that, if determined adversely, would prohibit
               or materially and adversely affect the Seller's performance of
               any of its respective obligations under, or the validity or
               enforceability of, this Agreement.

                    (x) The Seller did not transfer the Mortgage Loans to the
               Depositor with any intent to hinder, delay or defraud any of its
               creditors.

                    (xi) The Seller acquired title to the Mortgage Loans in good
               faith, without notice of any adverse claims.

                    (xii) The transfer, assignment and conveyance of the
               Mortgage Notes and the Mortgages by the Seller to the Depositor
               are not subject to the bulk transfer laws or any similar
               statutory provisions in effect in any applicable jurisdiction.

                  Section 2.08 Covenants of the Seller.

                  (a) The Seller hereby covenants that except for the transfer
hereunder, the Seller will not sell, pledge, assign or transfer to any other
Person, or grant, create, incur, assume or suffer to exist any lien on any
Mortgage Loan, or any interest therein; the Seller will notify the Trustee, as
assignee of the Depositor, of the existence of any lien on any Mortgage Loan
immediately upon discovery thereof, and the Seller will defend the right, title
and interest of the Trust, as assignee of the Depositor, in, to and under the
Mortgage Loans, against all claims of third parties claiming through or under
the Seller; provided, however, that nothing in this Section 2.09 shall prevent
or be deemed to prohibit the Seller from suffering to exist upon any of the
Mortgage Loans any liens for municipal or other local taxes and other
governmental charges if such taxes or governmental charges shall not at the time
be due and payable or if the Seller shall currently be contesting the validity
thereof in good faith by appropriate proceedings and shall have set aside on its
books adequate reserves with respect thereto.

                                     - 72 -
<PAGE>

                  (b) The Seller hereby covenants that neither it nor any
Affiliate of the Seller will directly solicit any Mortgagor hereunder to
refinance the related Mortgage Loan. For the purposes of the foregoing, neither
the Seller nor any Affiliate of the Seller shall be deemed to directly solicit
any Mortgagor if the Seller responds to a request from a Mortgagor regarding a
refinancing or if the Mortgagor receives marketing materials which are generally
disseminated.

                  Section 2.09 Conveyance of REMIC 1 Regular Interests and
Acceptance of REMIC 1 by the Trustee; Issuance of Certificates.

                  (a) The Depositor, 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
Depositor in and to the assets described in the definition of REMIC 1 for the
benefit of the holders of the REMIC 1 Regular Interests (which are
uncertificated) and the Class R Certificates (in respect of the Class R-1
Interest). The Trustee acknowledges receipt of the assets described in the
definition 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 the Class R Certificates (in respect 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.

                  (b) The Depositor, 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
Depositor in and to the REMIC 1 Regular Interests for the benefit of the holders
of the Regular Certificates, the REMIC 2 Regular Interests (which are
uncertificated) and the Class R Certificates (in respect of the Class R-2
Interest). The Trustee acknowledges receipt of the REMIC 1 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, the REMIC 2 Regular
Interests and the Class R Certificates (in respect of the Class R-2 Interest).
The interests evidenced by the Class R-2 Interest, together with the
Certificates and the REMIC 2 Regular Interests, constitute the entire beneficial
ownership interest in REMIC 2.

                  (c) 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 and Section 2.02 and (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
Section 2.10(b), the Trustee, pursuant to the written request of the Depositor
executed by an officer of the Depositor, has executed, authenticated and
delivered to or upon the order of the Depositor, the Class R Certificates in
authorized denominations evidencing the Class R-1 Interest and the Class R-2
Interest, the Class A Certificates, the Class M-1 Certificates, the Class M-2
Certificates, the Class M-3 Certificates, the Class B-2 Interest, the Class B-3
Interest, the Class B-4 Interest and the Class X/N Interest.

                  Section 2.10 Conveyance of Class B-2 Interest and Acceptance
of REMIC 3 by the Trustee; Issuance of the Class B-2 Certificates.

                  (a) The Depositor, concurrently with the execution and
delivery hereof, does hereby transfer, assign, set over and otherwise convey in
trust to the Trustee without recourse all

                                     - 73 -
<PAGE>

the right, title and interest of the Depositor in and to the Class B-2 Interest
for the benefit of the holders of the Class B-2 Certificates. The Trustee
acknowledges receipt of the Class B-2 Interest (which is uncertificated) and
declares that it holds and will hold the same in trust for the exclusive use and
benefit of the holders of the Class B-2 Certificates. The Class R-3 Interest,
together with the Class B-2 Certificates, constitute the entire beneficial
ownership interest in REMIC 3.

                  (b) In exchange for the Class B-2 Interest and, concurrently
with the assignment to the Trustee thereof, pursuant to the written request of
the Depositor executed by an officer of the Depositor, the Trustee has executed,
authenticated and delivered to or upon the order of the Depositor, the Class B-2
Certificates in authorized denominations evidencing (together with the Class R-3
Interest) the entire beneficial ownership interest in REMIC 3.

                  (c) Concurrently with (i) 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 by the Trustee thereof, pursuant to
Section 2.10(b), the Trustee, pursuant to the written request of the Depositor
executed by an officer of the Depositor, has executed, authenticated and
delivered to or upon the order of the Depositor, the Class R-3 Interest.

                  Section 2.11 Conveyance of Class B-3 Interest and Acceptance
of REMIC 4 by the Trustee; Issuance of the Class B-3 Certificates.

                  (a) The Depositor, 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
Depositor in and to the Class B-3 Interest for the benefit of the holders of the
Class B-3 Certificates. The Trustee acknowledges receipt of the Class B-3
Interest (which is uncertificated) and declares that it holds and will hold the
same in trust for the exclusive use and benefit of the holders of the Class B-3
Certificates. The Class R-4 Interest, together with the Class B-3 Certificates,
constitute the entire beneficial ownership interest in REMIC 4.

                  (b) In exchange for the Class B-3 Interest and, concurrently
with the assignment to the Trustee thereof, pursuant to the written request of
the Depositor executed by an officer of the Depositor, the Trustee has executed,
authenticated and delivered to or upon the order of the Depositor, the Class B-3
Certificates in authorized denominations evidencing (together with the Class R-4
Interest) the entire beneficial ownership interest in REMIC 4.

                  (c) Concurrently with (i) the assignment and delivery to the
Trustee of REMIC 4 (including the Residual Interest therein represented by the
Class R-3 Interest) and the acceptance by the Trustee thereof, pursuant to
Section 2.11(b), the Trustee, pursuant to the written request of the Depositor
executed by an officer of the Depositor, has executed, authenticated and
delivered to or upon the order of the Depositor, the Class R-4 Interest.

                  Section 2.12 Conveyance of Class B-4 Interest and Acceptance
of REMIC 5 by the Trustee; Issuance of the Class B-4 Certificates.

                  (a) The Depositor, concurrently with the execution and
delivery hereof, does hereby transfer, assign, set over and otherwise convey in
trust to the Trustee without recourse all

                                     - 74 -
<PAGE>

the right, title and interest of the Depositor in and to the Class B-5 Interest
for the benefit of the holders of the Class B-4 Certificates. The Trustee
acknowledges receipt of the Class B-4 Interest (which is uncertificated) and
declares that it holds and will hold the same in trust for the exclusive use and
benefit of the holders of the Class B-4 Certificates. The Class R-5 Interest,
together with the Class B-4 Certificates, constitute the entire beneficial
ownership interest in REMIC 5.

                  (b) In exchange for the Class B-4 Interest and, concurrently
with the assignment to the Trustee thereof, pursuant to the written request of
the Depositor executed by an officer of the Depositor, the Trustee has executed,
authenticated and delivered to or upon the order of the Depositor, the Class B-4
Certificates in authorized denominations evidencing (together with the Class R-5
Interest) the entire beneficial ownership interest in REMIC 5.

                  (c) Concurrently with (i) 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
Section 2.12(b), the Trustee, pursuant to the written request of the Depositor
executed by an officer of the Depositor, has executed, authenticated and
delivered to or upon the order of the Depositor, the Class R-5 Interest.

                  Section 2.13 Conveyance of Class X/N Interest and Acceptance
of REMIC 6 by the Trustee; Issuance of the Class X/N Certificates.

                  (a) The Depositor, 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
Depositor in and to the Class X/N Interest for the benefit of the holders of the
Class X/N Certificates. The Trustee acknowledges receipt of the Class X/N
Interest (which is uncertificated) and declares that it holds and will hold the
same in trust for the exclusive use and benefit of the holders of the Class X/N
Certificates. The Class R-6 Interest, together with the Class X Certificates,
constitute the entire beneficial ownership interest in REMIC 6.

                  (b) Concurrently with (i) 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
Section 2.13(a), the Trustee, pursuant to the written request of the Depositor
executed by an officer of the Depositor, has executed, authenticated and
delivered to or upon the order of the Depositor, the Class R-6 Interest.

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<PAGE>

                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF THE TRUST FUND

                  Section 3.01 Servicer to Act as Servicer.

                  The Servicer, as independent contract servicer, shall service
and administer the Mortgage Loans in accordance with this Agreement and the
normal and usual standards of practice of prudent mortgage servicers, 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 including, in the case of FHA Loans, taking all actions that a
mortgagee is permitted or required to take by the FHA (the "Servicing
Standards").

                  Consistent with the terms of this Agreement, the Servicer may
waive, modify or vary any term of any Mortgage Loan or consent to the
postponement of strict compliance with any such term or in any manner grant
indulgence to any Mortgagor if in the Servicer's reasonable and prudent
determination such waiver, modification, postponement or indulgence is not
materially adverse to the Certificateholders; provided, however, that the
Servicer shall not make future advances and (unless the 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 (i) change the Mortgage Interest
Rate, defer or forgive the payment thereof of any principal or interest
payments, reduce the outstanding principal amount (except for actual payments of
principal) or extend the final maturity date with respect to such Mortgage Loan,
(ii) in the case of FHA Loans, affect the FHA Insurance Contract with respect to
such Mortgage Loan, (iii) affect adversely the status of any REMIC as a REMIC or
(iv) cause any REMIC to be subject to a tax on "prohibited transactions" or
"contributions" pursuant to the REMIC Provisions. Notwithstanding the foregoing,
the Servicer shall not permit any modification with respect to any Mortgage Loan
that would both (x) effect an exchange or reissuance of such Mortgage Loan under
Section 1.860G-2(b) of the Treasury Regulations 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. 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
Trustee, 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 Property. The Servicer shall
make all required Servicing Advances and shall service and administer the
Mortgage Loans in accordance with Applicable Regulations, and shall provide to
the Mortgagor any reports required to be provided to them thereby. If reasonably
required by the Servicer, the Trustee shall furnish the Servicer with a power of
attorney substantially in the form of Exhibit P hereto and other documents
necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties under this Agreement and the Trustee shall have no
liability with respect to any misuse of such power of attorney and shall be
indemnified by the Servicer for any costs, liabilities or expenses incurred by
the Trustee in connection therewith.

                                     - 76 -
<PAGE>

                  Notwithstanding anything in this Agreement to the contrary,
the Servicer shall be prohibited from foreclosing on any Mortgage Loan based on
the delinquency status thereof as of the Cut-off Date.

                  In servicing and administering FHA Loans, the Servicer shall
comply strictly with the National Housing Act and the FHA Regulations, and
administrative guidelines issued thereunder or pursuant thereto (insofar as the
same apply to any Mortgage Loan) and, to the extent permitted hereunder,
promptly discharge all of the obligations of the mortgagee thereunder and under
each Mortgage including the timely giving of notices, the essence hereof being
that the full benefits of each FHA Insurance Contract inure to the Trustee, on
behalf of the Certificateholders.

                  In servicing and administering the Mortgage Loans, the
Servicer shall employ procedures including collection procedures and exercise
the same care that it customarily employs and exercises in servicing and
administering mortgage loans for its own account giving due consideration to
accepted mortgage servicing practices of prudent lending institutions, the FHA
Insurance Contracts, where applicable, and the Certificateholders' reliance on
the Servicer.

                  The Servicer shall give prompt notice to the Trustee of any
action, of which the Servicer has actual knowledge, which action purports to (i)
assert a claim against the Trust Fund or (ii) assert jurisdiction over the Trust
Fund.

                  Notwithstanding anything in this Agreement to the contrary, in
the event of a Principal Prepayment in full of a Mortgage Loan, the Servicer may
not waive any Prepayment Charge or portion thereof required by the terms of the
related Mortgage Note unless (i) the Servicer determines that such waiver would
maximize recovery of Liquidation Proceeds for such Mortgage Loan, taking into
account the value of such Prepayment Charge, (ii) (A) the enforceability thereof
is limited (1) by bankruptcy, insolvency, moratorium, receivership, or other
similar law relating to creditors' rights generally or (2) due to acceleration
in connection with a foreclosure or other involuntary payment, or (B) the
enforceability is otherwise limited or prohibited by applicable law or (iii) the
Servicer has not been provided with information sufficient to enable it to
collect the Prepayment Charge. In the event of a Principal Prepayment in full
with respect to any Mortgage Loan, the Servicer shall deliver to the Trustee an
Officer's Certificate substantially in the form of Exhibit N no later than the
date on which the Servicer delivers the Remittance Report to the Trustee and the
Trustee will make such Officer's Certificate available on its website to the
Class X Certificateholders. If the Servicer has waived or does not collect all
or a portion of a Prepayment Charge relating to a Principal Prepayment in full
due to any action or omission of the Servicer, other than as provided above, the
Servicer shall, within 90 days of the date on which the Principal Prepayment in
full is remitted to the Trustee, deliver to the Trustee the amount of such
Prepayment Charge (or such portion thereof as had been waived for deposit) into
the Distribution Account for distribution in accordance with the terms of this
Agreement.

                  The Trustee shall make available on its website to the
Depositor and the owner of the Class N and Class X Certificates, on a monthly
basis, a statement setting forth the amounts received with respect to Prepayment
Charges.

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<PAGE>

                  Section 3.02 Collection of Mortgage Loan Payments.

                  Continuously from the date hereof until the principal and
interest on all Mortgage Loans are paid in full, the Servicer will diligently
collect all payments due under each Mortgage Loan when the same shall become due
and payable and shall, to the extent such procedures shall be consistent with
this Agreement and Applicable Regulations, follow such collection procedures as
it follows with respect to mortgage loans comparable to the Mortgage Loans and
held for its own account. Further, the Servicer will take special 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, will become due and payable to
that 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 Realization Upon Defaulted Mortgage Loans.

                  In the event that any payment due under any Conventional
Mortgage Loan is not paid when the same becomes due and payable, or in the event
the Mortgagor fails to perform any other covenant or obligation under the
Mortgage Loan and such failure continues beyond any applicable grace period, the
Servicer shall take such action as it shall deem to be in the best interest of
the Certificateholders. In the event that any payment due under any FHA Loan
becomes delinquent, the Servicer shall take all such actions as are in the best
interests of the Certificateholders and permitted under any applicable FHA loss
mitigation proceedings, including, but not limited to, requesting the FHA to
accept an assignment of such FHA Loan, and, upon the Servicer's determination
that foreclosure is in the best interest of the Certificateholders, commencing
foreclosure proceedings. With respect to any defaulted Mortgage Loan, the
Servicer shall have the right to review the status of the related forbearance
plan and, subject to the second paragraph of Section 3.01, may modify such
forbearance plan; including, extending the Mortgage Loan repayment date for a
period of one year or reducing the Mortgage Interest Rate up to 50 basis points.

                  In connection with a foreclosure or other conversion, the
Servicer shall exercise such rights and powers vested in it hereunder and use
the same degree of care and skill in its exercise as prudent mortgage servicers
would exercise or use under the circumstances in the conduct of their own
affairs and consistent with Applicable Regulations and the servicing standards
set forth in the Fannie Mae Guide, including, without limitation, advancing
funds for the payment of taxes and insurance premiums with respect to first lien
Mortgage Loans.

                  Notwithstanding the foregoing provisions of this Section 3.03,
with respect to any Mortgage Loan as to which the Servicer has received actual
notice of, or has actual knowledge of, the presence of any toxic or hazardous
substance on the related Mortgaged Property, the Servicer shall not either (i)
obtain title to such Mortgaged Property as a result of or in lieu of foreclosure
or otherwise, or (ii) otherwise acquire possession of, or take any other action
with respect to, such Mortgaged Property if, as a result of any such action, the
Trust Fund would be considered to hold title to, to be a mortgagee-in-possession
of, or to be an owner or operator of such Mortgaged Property within the meaning
of the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended from time to time, or any comparable law, unless the Servicer
has also previously determined, based on its reasonable judgment

                                     - 78 -
<PAGE>
and a prudent report prepared by a Person who regularly conducts environmental
audits using customary industry standards, that:

                  A. such Mortgaged Property is in compliance with applicable
environmental laws or, if not, that it would be in the best economic interest of
the Certificateholders to take such actions as are necessary to bring the
Mortgaged Property into compliance therewith; and

                  B. there are no circumstances present at such Mortgaged
Property relating to the use, management or disposal of any hazardous
substances, hazardous materials, hazardous wastes, or petroleum-based materials
for which investigation, testing, monitoring, containment, clean-up or
remediation could be required under any federal, state or local law or
regulation, or that if any such materials are present for which such action
could be required, that it would be in the best economic interest of the
Certificateholders to take such actions with respect to the affected Mortgaged
Property.

                  The cost of the environmental audit report contemplated by
this Section 3.03 shall be advanced by the Servicer, subject to the Servicer's
right to be reimbursed therefor from the Collection Account as provided in
Section 3.05(ii).

                  If the Servicer determines, as described above, that it is in
the best economic interest of the Certificateholders to take such actions as are
necessary to bring any such Mortgaged Property into compliance with applicable
environmental laws, or to take such action with respect to the containment,
clean-up or remediation of hazardous substances, hazardous materials, hazardous
wastes, or petroleum-based materials affecting any such Mortgaged Property, then
the Servicer shall take such action as it deems to be in the best economic
interest of the Certificateholders. The cost of any such compliance,
containment, cleanup or remediation shall be advanced by the Servicer, subject
to the Servicer's right to be reimbursed therefor from the Collection Account as
provided in Section 3.05(ii).

                  Section 3.04 Collection Account and Distribution Account.

                  (a) The Servicer shall segregate and hold all funds collected
and received pursuant to each Mortgage Loan separate and apart from any of its
own funds and general assets and shall establish and maintain one or more
Collection Accounts. Each Collection Account shall be an Eligible Account.

                  The Servicer shall deposit in the Collection Account on a
daily basis within two Business Days of receipt, and retain therein, the
following payments and collections received or made by it after the Cut-off Date
with respect to the Mortgage Loans:

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

                    (ii) all payments on account of interest on the Mortgage
               Loans adjusted to the Mortgage Interest Rate less the Servicing
               Fee Rate;

                    (iii) all proceeds from a Final Recovery Determination;

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<PAGE>

                    (iv) all Insurance Proceeds including amounts required to be
               deposited pursuant to Section 3.10, other than proceeds to be
               held in the Escrow Account and applied to the restoration or
               repair of the Mortgaged Property or released to the Mortgagor in
               accordance with the Servicer's normal servicing procedures, the
               loan documents or applicable law;

                    (v) all Condemnation Proceeds affecting any Mortgaged
               Property which are not released to the Mortgagor in accordance
               with the Servicer's normal servicing procedures, the loan
               documents or applicable law;

                    (vi) all Subsequent Recoveries; and

                    (vii) any amounts required to be deposited by the Servicer
               in connection with any REO Property pursuant to Section 3.13.

                  Any interest paid on funds deposited in the Collection
Account, subject to Section 3.25, shall accrue to the benefit of the Servicer
and the Servicer shall be entitled to retain and withdraw such interest from the
Collection Account pursuant to Section 3.05(v). The foregoing requirements for
deposit from the Collection Account shall be exclusive, it being understood and
agreed that, without limiting the generality of the foregoing, payments in the
nature of late payment charges, prepayment charges that are not Prepayment
Charges, and assumption fees need not be deposited by the Servicer in the
Collection Account.

                  (b) On behalf of the Trust Fund and the Trustee, the Trustee
shall establish and maintain one or more accounts (such account or accounts, the
"Distribution Account"), held in trust for the benefit of the
Certificateholders. On behalf of the Trust Fund, the Servicer shall deliver to
the Trustee in immediately available funds for deposit in the Distribution
Account by the close of business New York time on the Servicer Remittance Date,
that portion of the Available Funds (calculated without regard to the references
in the definition thereof to amounts that may be deposited to the Distribution
Account from a different source as provided herein) then on deposit in the
Collection Account.

                  (c) Funds in the Collection Account and the Distribution
Account may be invested in Permitted Investments in accordance with the
provisions set forth in Section 3.25. The Servicer shall give notice to the
Trustee of the location of the Collection Account maintained by it when
established and prior to any change thereof. The Trustee shall give notice to
the Servicer and the Depositor of the location of the Distribution Account when
established and prior to any change thereof.

                  (d) In the event the Servicer shall deliver to the Trustee for
deposit in the Distribution Account any amount not required to be deposited
therein, it may at any time request that the Trustee withdraw such amount from
the Distribution Account and remit to the Servicer any such amount, any
provision herein to the contrary notwithstanding. In addition, the Servicer
shall deliver to the Trustee from time to time for deposit, and the Trustee
shall so deposit, in the Distribution Account in respect of REMIC 1:

                    (i) any Advances, as required pursuant to Section 4.07;

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                    (ii) any Stayed Funds, as soon as permitted by the federal
               bankruptcy court having jurisdiction in such matters;

                    (iii) any Prepayment Charges or amounts in connection with
               the waiver of such Prepayment Charges, in each case required to
               be deposited pursuant to Section 3.01;

                    (iv) any amounts required to be deposited in the
               Distribution Account pursuant to Sections 2.03, 3.04, 3.15, 3.16,
               3.23 or 4.07; and

                    (v) any amounts required to be deposited by the Servicer
               pursuant to Section 3.11 in connection with the deductible clause
               in any blanket hazard insurance policy, such deposit being made
               from the Servicer's own funds, without reimbursement therefor.

                  (e) Promptly upon receipt of any Stayed Funds, whether from
the Servicer, a trustee in bankruptcy, or federal bankruptcy court or other
source, the Trustee shall notify the Servicer of such receipt and deposit such
funds in the Distribution Account, subject to withdrawal thereof as permitted
hereunder.

                  Section 3.05 Permitted Withdrawals From the Collection
Account.

                  The Servicer may, from time to time, withdraw from the
Collection Account for the following purposes:

                    (i) to remit to the Trustee for deposit in the Distribution
               Account the amounts required to be so remitted pursuant to
               Section 3.04(b) or permitted to be so remitted pursuant to the
               first sentence of Section 3.04(d);

                    (ii) to reimburse itself for (x) Advances and Servicing
               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 payments of (a) principal
               and/or interest respecting which any such Advance was made or (b)
               Condemnation Proceeds, Insurance Proceeds or Liquidation Proceeds
               respecting which any such Servicing Advance was made or (y) any
               unreimbursed Advances made pursuant to Section 4.07(b) to the
               extent of funds held in the Collection Account for future
               distribution that were not included in Available Funds for the
               preceding Distribution Date;

                    (iii) to reimburse itself for unreimbursed Servicing
               Advances, any unpaid Servicing Fees and for unreimbursed Advances
               to the extent that such amounts are deemed to be Nonrecoverable
               Advances, and to reimburse itself for such amounts to the extent
               that such amounts are nonrecoverable from the disposition of REO
               Property pursuant to Section 3.03 or Section 3.13 hereof;

                    (iv) to reimburse itself for any amounts paid pursuant to
               Section 3.03 (and not otherwise previously reimbursed);

                    (v) to pay to itself as servicing compensation (a) any
               interest earned on funds in the Collection Account (all such
               interest to be withdrawn monthly not later than each Servicer
               Remittance Date) and (b) the Servicing Fee from that portion of
               any payment or

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               recovery as to interest to a particular Mortgage Loan to the
               extent not retained pursuant to Section 3.04(ii);

                    (vi) to pay or reimburse itself or any other party for any
               amounts payable or paid pursuant to Section 3.26 or Section 6.03
               (and not otherwise previously reimbursed); and

                    (vii) to clear and terminate the Collection Account upon the
               termination of this Agreement.

                  The foregoing requirements for withdrawal from the Collection
Account shall be exclusive. In the event the Servicer shall deposit in the
Collection Account any amount not required to be deposited therein, it may at
any time withdraw such amount from the Collection Account, any provision herein
to the contrary notwithstanding.

                  Section 3.06 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, in the form of time deposit
or demand accounts. A copy of such letter agreement shall be furnished to the
Trustee upon request. The Escrow Account shall be an Eligible Account.

                  The Servicer shall deposit in the Escrow Account or Accounts
on a daily basis within two Business Days of receipt, and retain therein, (i)
all Escrow Payments collected on account of the Mortgage Loans, for the purpose
of effecting timely payment of any such items as required under the terms of
this Agreement, and (ii) all Insurance Proceeds which are to be applied to the
restoration or repair of any Mortgaged Property. The Servicer shall make
withdrawals therefrom only to effect such payments as are required under this
Agreement, and for such other purposes as shall be set forth in, or in
accordance with, Section 3.07. The Servicer shall be entitled to retain any
interest paid on funds deposited in the Escrow Account by the depository
institution other than interest on escrowed funds required by law to be paid to
the Mortgagor and, to the extent required by the related Mortgage Loan or
Applicable Regulations, the Servicer shall pay interest on escrowed funds to the
Mortgagor notwithstanding that the Escrow Account is non-interest bearing or
that interest paid thereon is insufficient for such purposes.

                  Section 3.07 Permitted Withdrawals From Escrow Account.

                  Withdrawals from the Escrow Account may be made by the
Servicer (i) to effect timely payments of ground rents, taxes, assessments,
water rates, fire, flood and hazard insurance premiums, 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 Late 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 Collection Account in
accordance with the terms of this Agreement, (v) for application to restoration
or repair of the Mortgaged Property, (vi) to pay to the Servicer, or to the
Mortgagor to the extent required by the related Mortgage Loan or Applicable
Regulations,

                                     - 82 -
<PAGE>

any interest paid on the funds deposited in the Escrow Account, (vii) to clear
and terminate the Escrow Account on the termination of this Agreement, (viii) to
transfer to the Collection Account any insurance proceeds, or (ix) in the case
of FHA Loans, for transfer to the Collection Account, fire and hazard insurance
proceeds and Escrow Payments with respect to any Mortgage Loan where the FHA has
directed application of such funds as a credit against the proceeds of the FHA
Insurance Contract. As part of its servicing duties, the Servicer shall pay to
the Mortgagor interest on funds in the Escrow Account, to the extent required by
the related Mortgage Loan or Applicable Regulations, 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.

                  In the event the Servicer shall deposit in the Escrow Account
any amount not required to be deposited therein, it may at any time withdraw
such amount from the Escrow Account, any provision herein to the contrary
notwithstanding.

                  Section 3.08 Payment of Taxes, Insurance and Other Charges;
Collections Thereunder.

                  With respect to each first lien 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 fire, flood 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. To the extent that a Mortgage does not
provide for Escrow Payments, the Servicer (i) shall determine whether any such
payments are made by the Mortgagor in a manner and at a time that is necessary
to avoid the loss of the Mortgaged Property due to a tax sale or the foreclosure
as a result of a tax lien and (ii) shall ensure that all insurance required to
be maintained on the Mortgaged Property pursuant to this Agreement is
maintained. If any such payment has not been made and the Servicer receives
notice of a tax lien with respect to the Mortgage Loan being imposed, the
Servicer will, to the extent required to avoid loss of the Mortgaged Property,
advance or cause to be advanced funds necessary to discharge such lien on the
Mortgaged Property. 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 Servicing Advances from its own funds to effect
such payments.

                  Section 3.09 Transfer of Accounts.

                  The Servicer may transfer the Collection Account or the Escrow
Account to a different depository institution from time to time. Upon such
transfer, the Servicer shall deliver to the Trustee and the Depositor, a
certification or letter agreement, as the case may be, as required pursuant to
Sections 3.04 and 3.06.

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                  Section 3.10 Maintenance of Hazard Insurance.

                  The Servicer shall cause to be maintained for each first lien
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 at
least equal to the lesser of (i) the amount necessary to fully compensate for
any damage or loss to the improvements which are a part of such property on a
replacement cost basis, (ii) the Principal Balance of the Mortgage Loan, in each
case in an amount not less than such amount as is necessary to prevent the
Mortgagor and/or the Mortgagee from becoming a co-insurer or (iii) the amount
required under applicable HUD/FHA regulations. If the Mortgaged Property is in
an area identified in the Federal Register by the Flood 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
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 Principal Balance of
the Mortgage Loan, (ii) the maximum insurable value of the improvements securing
such Mortgage Loan or (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 the REO Property for the benefit of the Certificateholders, (x)
fire and hazard insurance with extended coverage in an amount which is at least
equal to the replacement cost of the improvements which are a part of such
property, (y) public liability insurance and, (z) 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 the Escrow Account
and applied to the restoration or repair of the Mortgaged Property or REO
Property, or released to the Mortgagor in accordance with the Servicer's normal
servicing procedures, shall be deposited in the Collection Account, subject to
withdrawal pursuant to Section 3.05. It is understood and agreed that no
earthquake or other additional insurance is required to be maintained by the
Servicer or the Mortgagor or maintained on property acquired in respect of the
Mortgage Loan, other than pursuant to such Applicable 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 shall provide for at least thirty days prior written notice of
any cancellation, reduction in the amount of or material change in coverage to
the Servicer. The Servicer shall not interfere with the Mortgagor's freedom of
choice in selecting either his insurance carrier or agent, provided, however,
that the Servicer shall not accept any such insurance policies from insurance
companies unless such companies currently reflect a general policy rating of
B:VI or better in Best's Key Rating Guide and are licensed to do business in the
state wherein the property subject to the policy is located.

                  Section 3.11 Maintenance of Mortgage Impairment Insurance
Policy.

                  In the event that the Servicer shall obtain and maintain a
blanket policy issued by an insurer that has a general policy rating of B:VI or
better in Best's Key Rating Guide insuring against hazard losses on all of the
Mortgage Loans, then, to the extent such policy provides coverage in an amount
equal to the amount required pursuant to Section 3.10 and otherwise complies
with all other requirements of Section 3.10, it shall conclusively be deemed to
have satisfied its obligations as set forth in Section 3.10, it being understood
and agreed that such policy may contain a deductible clause, in which case the
Servicer shall, in the event that there

                                     - 84 -
<PAGE>

shall not have been maintained on the related Mortgaged Property or REO Property
a policy complying with Section 3.10, and there shall have been a loss which
would have been covered by such policy, deliver to the Trustee for deposit in
the Distribution Account the amount not otherwise payable under the blanket
policy because of such deductible clause, which amount shall not be reimbursable
to the Servicer from the Trust Fund. In connection with its activities as
servicer of the Mortgage Loans, the Servicer agrees to prepare and present, on
behalf of the Trustee, claims under any such blanket policy in a timely fashion
in accordance with the terms of such policy. Upon request of the Trustee, the
Servicer shall cause to be delivered to the Trustee 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 thirty days prior
written notice to the Trustee.

                  Section 3.12 Fidelity Bond, Errors and Omissions Insurance.

                  The Servicer shall maintain, at its own expense, a blanket
fidelity bond (the "Fidelity Bond") and an errors and omissions insurance
policy, with broad coverage with financially responsible companies on all
officers, employees or other persons acting in any capacity with regard to the
Mortgage Loans to handle funds, money, documents and papers relating to the
Mortgage Loans. The Fidelity Bond and errors and omissions insurance shall be in
the form of the Mortgage Banker's Blanket Bond and shall protect and insure the
Servicer against losses, including forgery, theft, embezzlement, fraud, errors
and omissions and negligent acts of such persons. Such Fidelity Bond shall also
protect and insure the Servicer against losses in connection with the failure to
maintain any insurance policies required pursuant to this Agreement and the
release or satisfaction of a Mortgage Loan without having obtained payment in
full of the indebtedness secured thereby. No provision of this Section 3.12
requiring the Fidelity Bond and errors and omissions insurance shall diminish or
relieve the Servicer from its duties and obligations as set forth in this
Agreement. The minimum coverage under any such bond and insurance policy shall
be at least equal to the corresponding amounts required by Fannie Mae in the
Fannie Mae MBS Selling and Servicing Guide or by Freddie Mac in the Freddie Mac
Servicer's Guide. Upon request of the Trustee, the Servicer shall cause to be
delivered to the requesting party a certified true copy of the Fidelity Bond and
errors and omissions insurance policy and a statement from the surety and the
insurer that such Fidelity Bond and errors and omissions insurance policy shall
in no event be terminated or materially modified without thirty days' prior
written notice to the Trustee.

                  Section 3.13 Title, Management and Disposition of REO
Property.

                  (a) In the event that title to a Mortgaged Property is
acquired in foreclosure or by deed in lieu of foreclosure, the deed or
certificate of sale shall be taken (pursuant to a limited power of attorney to
be provided by the Trustee to the Servicer) in the name of the Trustee, on
behalf of the Certificateholders, or in the event the Trustee 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 an attorney duly licensed to
practice law in the state where the REO Property is located. Any Person or
Persons holding such title other than the

                                     - 85 -
<PAGE>

Trustee shall acknowledge in writing that such title is being held as nominee
for the benefit of the Trustee.

                  (b) In the event that the Trust Fund acquires any REO Property
as aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Servicer shall dispose of such REO Property before the end of
the third calendar year beginning after the year of its acquisition by the Trust
Fund for purposes of Section 860G(a)(8) of the Code or, at the expense of the
Trust Fund, request from the Internal Revenue Service, more than 60 days before
the day on which the above-mentioned grace period would otherwise expire, an
extension of the above-mentioned grace period, unless the Servicer obtains an
Opinion of Counsel, addressed to the Servicer and the Trustee, to the effect
that the holding by the Trust Fund of such REO Property subsequent to such
period will not: (i) result in the imposition of any tax on "prohibited
transactions" as defined in Section 860F of the Code; or (ii) cause any REMIC
constituting any part of the Trust Fund to fail to qualify as a REMIC at any
time that any Certificates are outstanding, in which case the Trust Fund may
continue to hold such REO Property (subject to any conditions contained in such
Opinion of Counsel). The Servicer shall be entitled to be reimbursed from the
Collection Account for any costs incurred in obtaining such Opinion of Counsel,
as provided in Section 3.05.

                  Subject to compliance with applicable laws and regulations as
shall at any time be in force, and notwithstanding any other provisions of this
Agreement, no REO Property acquired by the Trust Fund shall be rented (or
allowed to continue to be rented) or otherwise used by or on behalf of the Trust
Fund 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 constituting part of
the Trust Fund 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 or 860G(c) of the Code, unless the Servicer has agreed to indemnify and
hold harmless the Trust Fund with respect to the imposition of any such taxes.

                  The Servicer shall manage, conserve, protect and operate each
REO Property for the Certificateholders and the Trust Fund solely for the
purpose of its prompt disposition and sale in a manner which does not cause such
REO Property to fail to qualify as "foreclosure property" within the meaning of
Section 860G(a)(8) of the Code or result in the receipt by the related REMIC of
any "income from non-permitted assets" within the meaning of Section
860F(a)(2)(B) of the Code, or any "net income from foreclosure property" which
is subject to taxation under the REMIC Provisions. 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 least annually thereafter. The
Servicer shall make or cause to be made a written report of each such
inspection. Such reports shall be retained in the Mortgage Servicing File and
copies thereof shall be forwarded by the Servicer to the Trustee upon request.
The Servicer shall attempt to sell the same (and may temporarily rent the same)
on such terms and conditions as the Servicer deems to be in the best interest of
the Certificateholders and the Trust Fund.

                  With respect to each REO Property, the Servicer shall account
separately for each REO Property with respect to all funds collected and
received in connection with the operation of such REO Property.

                                     - 86 -
<PAGE>

                  The Servicer shall deposit or cause to be deposited, on a
daily basis, within two Business Days of receipt, in the Collection Account, all
revenues received with respect to each REO Property and shall withdraw therefrom
funds necessary for the proper operation, management and maintenance of the
related REO Property, including the cost of maintaining any hazard insurance
pursuant to Section 3.10 hereof and the fees of any managing agent acting on
behalf of the Servicer.

                  The Servicer shall furnish to the Trustee, on each Servicer
Remittance Date, an operating statement for each REO Property covering the
operation of each REO Property for the previous month. Such operating statement
shall be accompanied by such other information as the Trustee shall reasonably
request.

                  The Servicer shall use its best efforts to dispose of the REO
Property as promptly as is practically consistent with protecting the
Certificateholders' interests.

                  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 Certificateholders. If as of the date title to any REO
Property was acquired by the Servicer there were outstanding unreimbursed
Servicing Advances with respect to the REO Property, the Servicer, upon an REO
Disposition of such REO Property, shall be entitled to reimbursement for any
related unreimbursed Servicing Advances from proceeds received in connection
with such REO Disposition. The proceeds from the REO Disposition, net of any
payment to the Servicer as provided above, shall be deposited in the Collection
Account for distribution on the succeeding Servicer Remittance Date in
accordance with Section 4.01 and Section 4.02.

                  Any REO Disposition shall be for cash only (unless changes in
the REMIC Provisions made subsequent to the Startup Day allow a sale for other
consideration and an Opinion of Counsel is obtained by the Servicer to the
effect that such sale shall not cause any REMIC constituting part of the Trust
Fund to fail to qualify as a REMIC).

                  Section 3.14 Due-on-Sale Clauses; Assumption and Substitution
Agreements.

                  When a Mortgaged Property has been or is about to be conveyed
by the Mortgagor, the Servicer shall, to the extent it has knowledge of such
conveyance or prospective conveyance, exercise its rights to accelerate the
maturity of the related Mortgage Loan under any "due-on-sale" clause contained
in the related Mortgage or Mortgage Note; provided, however, that the Servicer
shall not exercise any such right if the "due-on-sale" clause, in the reasonable
belief of the Servicer, is not enforceable under applicable law. An Opinion of
Counsel at the expense of the Servicer (which expense shall constitute a
Servicing Advance) delivered to the Trustee and the Depositor to the foregoing
effect shall conclusively establish the reasonableness of such belief. In such
event, the Servicer shall make reasonable efforts to enter into an assumption
and modification agreement with the Person to whom such property has been or is
about to be conveyed, pursuant to which such Person becomes liable under the
Mortgage Note and, unless prohibited by applicable law or the Mortgage, the
Mortgagor remains liable thereon. If the foregoing is not permitted under
applicable law, the Servicer is 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 Mortgagor and
becomes liable under the

                                     - 87 -
<PAGE>

Note. The Mortgage Loan, as assumed, shall conform in all respects to the
requirements, representations and warranties of this Agreement. The Servicer
shall notify the Trustee that any such assumption or substitution agreement has
been completed by forwarding to the Trustee (or the Custodian, as the case may
be) the original copy of such assumption or substitution agreement (indicating
the Mortgage File to which it relates) which copy shall be added by the Trustee
(or the Custodian, as the case may be) to the related Mortgage File and which
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. The
Servicer shall be responsible for recording any such assumption or substitution
agreements. In connection with any such assumption or substitution agreement,
the Monthly Payment on the related Mortgage Loan shall not be changed but shall
remain as in effect immediately prior to the assumption or substitution, the
stated maturity or outstanding principal amount of such Mortgage Loan shall not
be changed nor shall any required monthly payments of principal or interest be
deferred or forgiven. Any fee collected by the Servicer for consenting to any
such conveyance or entering into an assumption or substitution agreement shall
be retained by or paid to the Servicer as additional servicing compensation.

                  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 Mortgage Loan by operation of law or any assumption which the Servicer may be
restricted by law from preventing, for any reason whatsoever.

                  Section 3.15 Notification of Adjustments.

                  On each Adjustment Date, the Servicer shall make Mortgage
Interest Rate adjustments for each Adjustable-Rate Mortgage Rate Loan in
compliance with the requirements of the related Mortgage and Mortgage Note and
Applicable Regulations. The Servicer shall execute and deliver the notices
required by each Mortgage and Mortgage Note and Applicable Regulations regarding
Mortgage Interest Rate adjustments. The Servicer also shall provide timely
notification to the Trustee of all applicable data and information regarding
such Mortgage Interest Rate adjustments and the Servicer's methods of
implementing such Mortgage Interest Rate adjustments. Upon the discovery by the
Servicer or the Trustee that the Servicer has failed to adjust or has
incorrectly adjusted a Mortgage Interest Rate or a Monthly Payment pursuant to
the terms of the related Mortgage Note and Mortgage, the Servicer shall deliver
to the Trustee for deposit in the Distribution Account from its own funds the
amount of any interest loss caused thereby without reimbursement therefor;
provided, however, the Servicer shall be held harmless with respect to any
Mortgage Interest Rate adjustments made by any servicer prior to the Servicer.

                  Section 3.16 Optional Purchases of Mortgage Loans by Servicer.

                  The Servicer (or an affiliate of the Servicer) may, at its
option, repurchase a Mortgage Loan or REO Property which becomes 120 or more
days Delinquent or for which the Servicer has accepted a deed in lieu of
foreclosure, during the period commencing on the first day of the calendar
quarter succeeding the calendar quarter in which the Initial Delinquency Date
occurred with respect to such Mortgage Loan and ending on the last Business Day
of such

                                     - 88 -
<PAGE>

calendar quarter. If the Servicer (or an affiliate of the Servicer) does not
exercise its purchase right with respect to a Mortgage Loan during the period
specified in the preceding sentence, such Mortgage Loan shall thereafter again
become eligible for purchase pursuant to the preceding sentence only after the
Mortgage Loan ceases to be 120 days or more Delinquent and thereafter becomes
120 days Delinquent again. The "Initial Delinquency Date" of a Mortgage Loan
shall mean the date on which the Mortgage Loan first became 120 days Delinquent.
Prior to repurchase pursuant to this Section 3.16, the Servicer shall be
required to continue to make monthly advances pursuant to Section 4.07. The
Servicer shall not use any procedure in selecting Mortgage Loans to be
repurchased which is materially adverse to the interests of the
Certificateholders. The Servicer shall purchase such (i) delinquent Mortgage
Loan at a price equal to the Principal Balance of the Mortgage Loan plus accrued
interest thereon at the Mortgage Interest Rate from the date to which interest
has last been paid to the Trust Fund to the date of purchase plus any
unreimbursed Servicing Advances and Advances or (ii) REO Property at its fair
market value as determined in good faith by the Servicer. Any such repurchase of
a Mortgage Loan or REO Property pursuant to this Section 3.16 shall be
accomplished by delivery to the Trustee for deposit in the Distribution Account
of the amount of the purchase price. The Trustee shall immediately effectuate
the conveyance of such delinquent Mortgage Loan or REO Property to the Servicer
to the extent necessary, including the prompt delivery of all documentation to
the Servicer.

                  Section 3.17 Trustee to Cooperate; Release of Files.

                  (a) Upon the payment in full of any Mortgage Loan (including
any liquidation of such Mortgage Loan through foreclosure or otherwise, or the
receipt by the Servicer of a notification that payment in full will be escrowed
in a manner customary for such purposes), the Servicer shall deliver to the
Trustee (or the Custodian as the case may be) two executed copies of a completed
"Request for Release" in the form of Exhibit E. Upon receipt of such Request for
Release of Documents, the Trustee (or the Custodian as the case may be) shall
promptly release the related Mortgage File, in trust to (i) the Servicer, or
(ii) such other party identified in the related Request for Release. Upon any
such payment in full, or the receipt of such notification that such funds have
been placed in escrow, the Servicer shall direct the Trustee in writing to
execute an instrument of satisfaction (or assignment of Mortgage without
recourse) regarding the Mortgaged Property relating to such 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 payment in
full, it being understood and agreed that no expense incurred in connection with
such instrument of satisfaction or assignment, as the case may be, shall be
chargeable to the Collection Account. In lieu of executing any such satisfaction
or assignment, as the case may be, the Servicer may prepare and submit to the
Trustee a satisfaction (or assignment without recourse, if requested by the
Person or Persons entitled thereto) in form for execution by the Trustee with
all requisite information completed by the Servicer; in such event, the Trustee
shall execute and acknowledge such satisfaction or assignment, as the case may
be, and deliver the same with the related Mortgage File, as aforesaid.

                  (b) From time to time and as appropriate in the servicing of
any Mortgage Loan, including, without limitation, foreclosure or other
comparable conversion of a Mortgage Loan or collection under any insurance
policy relating to a Mortgage Loan, the Trustee shall (except in the case of the
payment or liquidation pursuant to which the related Mortgage File is

                                     - 89 -
<PAGE>

released to an escrow agent or an employee, agent or attorney of the Trustee),
upon written request of the Servicer and delivery to the Trustee (or the
Custodian, as the case may be) of two executed copies of a "Request for Release"
in the form of Exhibit E signed by a Servicing Officer, release the related
Mortgage File to the Servicer and shall execute such documents as shall be
necessary to the prosecution of any such proceedings, including, without
limitation, an assignment without recourse, representation or warranty of the
related Mortgage to the Servicer. Such receipt shall obligate the Servicer to
return the Mortgage File to the Trustee (or the Custodian, as the case may be)
when the need therefor by the Servicer no longer exists unless the Mortgage Loan
shall be liquidated, in which case, upon receipt of a Request for Release
evidencing such liquidation, the receipt shall be released by the Trustee (or
the Custodian, as the case may be) to the Servicer.

                  (c) Subject to Section 3.01, the Servicer shall have the right
to accept applications of Mortgagors for consent to (i) partial releases of
Mortgages, (ii) alterations, (iii) removal, demolition or division of properties
subject to Mortgages and (iv) second mortgage subordination agreements. No
application for approval shall be considered by the Servicer unless: (w) it has
received an Opinion of Counsel, addressed to the Trustee (which opinion shall
not be an expense of the Trustee or the Trust Fund) that such sale, disposition,
substitution, acquisition or contribution will not affect adversely the status
of any REMIC constituting part of the Trust Fund as a REMIC or cause any REMIC
constituting part of the Trust Fund to be subject to a tax on "prohibited
transactions" or "contributions" pursuant to the REMIC Provisions; (x) the
provisions of the related Note and Mortgage have been complied with; (y) the
Combined Loan-to-Value Ratio and debt-to-income ratio after any release does not
exceed the maximum Combined Loan-to-Value Ratio and debt-to-income ratio
established in accordance with the underwriting standards of the Mortgage Loans;
and (z) the lien priority of the related Mortgage is not affected. Upon receipt
by the Trustee of a Servicing Officer's certificate setting forth the action
proposed to be taken in respect of a particular Mortgage Loan and certifying
that the criteria set forth in the immediately preceding sentence have been
satisfied, the Trustee shall execute and deliver to the Servicer the consent or
partial release so requested by the Servicer. A proposed form of consent or
partial release, as the case may be, shall accompany any Servicing Officer's
certificate delivered by the Servicer pursuant to this paragraph.

                  Section 3.18 Servicing Compensation.

                  As compensation for its activities hereunder, the Servicer
shall be entitled to retain the amount of the Servicing Fee with respect to each
Mortgage Loan (including REO Properties). The Servicer shall be entitled to
retain additional servicing compensation in the form of release fees, bad check
charges, assumption fees, modification or extension fees, late payment charges,
customary real estate referral fees or any other service-related fees, Insurance
Proceeds and Liquidation Proceeds not required to be deposited in the Collection
Account and similar items, to the extent collected from Mortgagors.

                  Section 3.19 Annual Statement as to Compliance.

                  (a) The Servicer, at its own expense, will deliver to the
Trustee and the Depositor, not later than March 15th of each calendar year
commencing in 2005, a Servicing Officer's certificate stating, as to each signer
thereof, that (i) a review of the activities of the

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Servicer during such preceding calendar year (or such shorter period in the case
of the first such report) 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.

                  (b) Delivery of such reports, information and documents to the
Trustee is for informational purposes only and their receipt of such shall not
constitute constructive notice of any information contained therein or
determinable, from information contained therein, including the Servicer's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates).

                  Section 3.20 Annual Independent Certified Public Accountants'
Reports.

                  (a) Not later than March 15th of each calendar year commencing
in 2005, the Servicer, at its expense, shall cause a nationally recognized firm
of independent certified public accountants to furnish to the Trustee and the
Depositor a report stating that (i) it has obtained a letter of representation
regarding certain matters from the management of the Servicer which includes an
assertion that the Servicer has complied with certain minimum residential
mortgage loan servicing standards, identified in either the Uniform Single
Attestation Program for Mortgage Bankers established by the Mortgage Bankers
Association of America or the Audit Program for Mortgages serviced by Freddie
Mac, with respect to the servicing of residential mortgage loans during the most
recently completed calendar year and (ii) on the basis of an examination
conducted by such firm in accordance with standards established by the American
Institute of Certified Public Accountants, such representation is fairly stated
in all material respects, subject to such exceptions and other qualifications
that may be appropriate. Immediately upon receipt of such report, the Servicer
shall furnish a copy of such report to the Trustee, the Depositor and each
Rating Agency. Copies of such statement shall be provided by the Trustee to any
Certificateholder upon request at the Servicer's expense, provided that such
statement is delivered by the Servicer to the Trustee.

                  (b) Delivery of such reports, information and documents to the
Trustee is for informational purposes only and its receipt of such shall not
constitute constructive notice of any information contained therein or
determinable, from information contained therein, including the Servicer's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates).

                  Section 3.21 Access to Certain Documentation and Information
Regarding the Mortgage Loans.

                  The Servicer shall provide to the Trustee, Certificateholders
or Certificate Owners that are federally insured savings and loan associations,
the Office of Thrift Supervision, the FDIC and the supervisory agents and
examiners of each of the foregoing (which, in the case of supervisory agents and
examiners, may be required by applicable state and federal regulations) access
to the documentation regarding the Mortgage Loans, such access being afforded
without

                                     - 91 -
<PAGE>

charge but only upon reasonable request and during normal business hours at the
offices of the Servicer designated by it.

                  Section 3.22 Commission Reporting.

                  (a) The Trustee and the Servicer shall reasonably cooperate
with the Depositor in connection with satisfying the reporting requirements
under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The
Trustee shall prepare and file (via the Securities and Exchange Commission's
Electronic Data Gathering and Retrieval System) on behalf of the Trust Fund any
Forms 8-K and 10-K (and the Servicer shall sign any Form 10-K) customary for
similar securities as required by the Exchange Act and the Rules and Regulations
of the Securities and Exchange Commission thereunder.

                  (b) Each Form 8-K shall be filed by the Trustee within 15 days
after each Distribution Date, with a copy of the statement to the
Certificateholders for such Distribution Date as an exhibit thereto. Prior to
March 30th of each year (or such earlier date as may be required by the Exchange
Act and the Rules and Regulations of the Securities and Exchange Commission),
the Trustee shall file a Form 10-K, in substance as required by applicable law
or applicable Security and Exchange Commission staff's interpretations. Such
Form 10-K shall include as exhibits the Servicer's annual statement of
compliance described under Section 3.19 and the accountant's report described
under Section 3.20, in each case to the extent they have been timely delivered
to the Trustee. The Trustee shall have no liability with respect to (a) any
failure to properly prepare or file such periodic reports resulting from or
relating to the Trustee's inability or failure to obtain any information not
resulting from its own negligence, willful misconduct or bad faith or (b) any
inaccuracy in such periodic reports resulting from incorrect information
provided to the Trustee by the Servicer in a Remittance Report or otherwise. The
Form 10-K shall also include a certification in the form attached hereto as
Exhibit O-1 (the "Certification"), which shall be signed by the senior officer
of the Servicer in charge of servicing.

                  (c) In addition, the Trustee shall sign a certification (in
the form attached hereto as Exhibit O-2) for the benefit of the Servicer and its
officers, directors and Affiliates regarding certain aspects of the
Certification (the "Trustee Certification") (provided, however, that the Trustee
shall not undertake an analysis of the accountant's report attached as an
exhibit to the Form 10-K). Such certification shall be delivered to the Servicer
no later than the 20th day prior to the latest date on which the Form 10-K is
permitted to be filed, without regard to extension (or if such day is not a
Business Day, the immediately preceding Business Day) and the Servicer shall
deliver the Certification to be filed to the Trustee no later than the 10th day
prior to the latest date on which the Form 10-K is permitted to be filed,
without regard to extension (or if such day is not a Business Day, the
immediately preceding Business Day).

                  In addition, (i) the Trustee shall, subject to the provisions
of Sections 8.01 and 8.02 hereof, indemnify and hold harmless the Depositor, the
Servicer and each of its officers, directors and Affiliates from and against any
losses, damages, penalties, fines, forfeitures, reasonable and necessary legal
fees and related costs, judgments and other costs and expenses arising out of or
based upon (a) a breach of the Trustee's obligations under this Section 3.22(b),
(b) the Trustee's negligence, bad faith or willful misconduct in connection
therewith or (c) any

                                     - 92 -
<PAGE>

inaccuracy in the Trustee Certification and (ii) the Servicer shall indemnify
and hold harmless the Depositor, the Trustee and their respective officers,
directors and Affiliates from and against any actual losses, damages, penalties,
fines, forfeitures, reasonable and necessary legal fees and related costs,
judgments and other costs and expenses arising out of or based upon (a) the
failure of the Servicer to timely deliver the Certification or (b) any material
misstatement in the Certification. If the indemnification provided for herein is
unavailable or insufficient to hold harmless the Depositor, then (i) the Trustee
agrees that it shall contribute to the amount paid or payable by the Depositor
as a result of the losses, claims, damages or liabilities of the Depositor in
such proportion as is appropriate to reflect the relative fault of the Depositor
on the one hand and the Trustee on the other in connection with a breach of the
Trustee's obligations under this Section 3.22(b) or the Trustee's negligence,
bad faith or willful misconduct in connection therewith and (ii) the Servicer
agrees that it shall contribute to the amount paid or payable by the Depositor
as a result of the losses, claims, damages or liabilities of the Depositor in
such proportion as is appropriate to reflect the relative fault of the Depositor
on the one hand and the Servicer on the other in connection with a breach of the
Servicer's obligations under this Section 3.22(b) or the Servicer's negligence,
bad faith or willful misconduct in connection therewith.

                  (d) Upon any filing with the Securities and Exchange
Commission, the Trustee shall promptly deliver to the Depositor and the Servicer
a copy of any executed report, statement or information.

                  (e) Prior to January 30th of the first year in which the
Trustee is able to do so under applicable law, the Trustee shall file a Form 15
Suspension Notification with respect to the Trust Fund.

                  (f) To the extent that, following the Closing Date, the
Depositor certifies that reports and certifications differing from those
required under this Section 3.22 comply with the reporting requirements under
the Exchange Act, the Trustee and the Servicer hereby agree that they will
reasonably cooperate to amend the provisions of this Section 3.22 in order to
comply with such amended reporting requirements and such amendment of this
Section 3.22. Any such amendment may result in the reduction of the reports
filed by the Depositor under the Exchange Act. Notwithstanding the foregoing,
the parties hereto shall not be obligated to enter into any amendment pursuant
to this Section 3.22 that adversely affects its obligations and immunities under
this Agreement.

                  Section 3.23 Obligations of the Servicer in Respect of
Compensating Interest.

                  Not later than the close of business on each Servicer
Remittance Date, the Servicer shall deliver to the Trustee for deposit in the
Distribution Account an amount ("Compensating Interest") equal to the lesser of
(A) the aggregate of the Prepayment Interest Shortfalls on the Mortgage Loans
for the related Distribution Date resulting from Principal Prepayments in full
on the Mortgage Loans during the related Prepayment Period and (B) 50% of its
aggregate Servicing Fee received in the related Collection Period. Compensating
Interest shall be applied to offset any Prepayment Interest Shortfalls on the
Mortgage Loans. The Servicer shall not have the right to reimbursement for any
amounts remitted to the Trustee in respect of Compensating Interest. Such
amounts so remitted shall be included in the Available

                                     - 93 -
<PAGE>

Funds and distributed therewith on the next Distribution Date. The Servicer
shall not be obligated to pay Relief Act Interest Shortfalls.

                  Section 3.24 Obligations of the Servicer in Respect of
Mortgage Interest Rates and Monthly Payments.

                  In the event that a shortfall in any collection on or
liability with respect to any Mortgage Loan results from or is attributable to
adjustments to Mortgage Interest Rates, Monthly Payments or Principal Balances
that were made by the Servicer in a manner not consistent with the terms of the
related Mortgage Note and this Agreement, the Servicer, upon discovery or
receipt of notice thereof, immediately shall deliver to the Trustee for deposit
in the Distribution Account from its own funds the amount of any such shortfall
and shall indemnify and hold harmless the Trust Fund, the Trustee, the Depositor
and any successor servicer in respect of any such liability. Such indemnities
shall survive the termination or discharge of this Agreement.

                  Section 3.25 Investment of Funds in the Collection Account and
the Distribution Account.

                  (a) The Servicer may direct any depository institution
maintaining the Collection Account (for purposes of this Section 3.25, an
"Investment Account"), to invest the funds in such Investment Account in one or
more Permitted Investments bearing interest or sold at a discount, and maturing,
unless payable on demand, (i) no later than the Business Day immediately
preceding the date on which such funds are required to be withdrawn from such
account pursuant to this Agreement, if a Person other than the Trustee is the
obligor thereon, and (ii) no later than the date on which such funds are
required to be withdrawn from such account pursuant to this Agreement, if the
Trustee is the obligor thereon. All such Permitted Investments shall be held to
maturity, unless payable on demand. Any investment of funds in an Investment
Account shall be made in the name of the Trustee or the Servicer, as applicable
(in its capacity as such) or in the name of a nominee of the Trustee. The
Trustee shall be entitled to sole possession (except with respect to investment
direction of funds held in the Collection Account) over each such investment and
the income thereon, and any certificate or other instrument evidencing any such
investment shall be delivered directly to the Trustee or its agent, together
with any document of transfer necessary to transfer title to such investment to
the Trustee or its nominee. In the event amounts on deposit in an Investment
Account are at any time invested in a Permitted Investment payable on demand,
the Trustee shall at the direction of the Servicer:

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

                  (y) demand payment of all amounts due thereunder promptly upon
         determination by a Responsible Officer of the Trustee that such
         Permitted Investment would not constitute a Permitted Investment in
         respect of funds thereafter on deposit in the Investment Account.

                                     - 94 -
<PAGE>

                  (b) All income and gain realized from the investment of funds
in the Collection Account shall be for the benefit of the Servicer. The Servicer
shall deposit in the Collection Account the amount of any loss incurred in
respect of any such Permitted Investment made with funds in such account
immediately upon realization of such loss.

                  (c) Except as otherwise expressly provided in this Agreement,
if any default occurs in the making of a payment due under any Permitted
Investment, or if a default occurs in any other performance required under any
Permitted Investment, the Trustee may and, subject to Section 8.01 and Section
8.02(a)(v), upon the request of the Holders of Certificates representing more
than 50% of the Voting Rights allocated to any Class of Certificates, shall take
such action as may be appropriate to enforce such payment or performance,
including the institution and prosecution of appropriate proceedings.

                  The Trustee shall not in any way be held liable by reason of
any insufficiency in any Account held by the Trustee resulting from any
investment loss on any Permitted Investment included therein (except to the
extent that the Trustee is the obligor and has defaulted thereon).

                  Section 3.26 Liability of Servicer; Indemnification.

                  (a) Subject to clause (b) below and Section 6.03, the Servicer
(except the Trustee if it is required to succeed the Servicer hereunder)
indemnifies and holds the Trustee, the Seller, the Depositor and each
Certificateholder harmless against any and all claims, losses, penalties, fines,
forfeitures, reasonable legal fees and related costs, judgments, and any other
costs, fees and expenses that the Trustee, the Depositor and any
Certificateholder may sustain in any way related to the failure of the Servicer
to perform its duties and service the Mortgage Loans in compliance with the
Servicing Standards. The Servicer shall immediately notify the Trustee, the
Depositor and each Certificateholder if a claim is made that may result in such
claims, losses, penalties, fines, forfeitures, legal fees or related costs,
judgments, or any other costs, fees and expenses, and the Servicer shall assume
(with the consent of the Trustee) the defense of any such claim and pay all
expenses in connection therewith, including reasonable counsel fees, and
promptly pay, discharge and satisfy any judgment or decree which may be entered
against the Servicer, the Trustee, the Depositor and/or Certificateholder in
respect of such claim. The provisions of this Section 3.26 shall survive the
termination of this Agreement and the payment of the outstanding Certificates.

                  (b) None of the Depositor, the Seller, the Servicer, or any of
the directors, officers, employees or agents of the Depositor, the Seller or the
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 Depositor, the
Seller or the Servicer or any such Person against any breach of warranties or
representations made herein, or against any specific liability imposed on the
Servicer for a breach of the Servicing Standard, or against any liability which
would otherwise be imposed by reason of its respective willful misfeasance, bad
faith, fraud or negligence in the performance of its duties or by reasons of
negligent disregard of its respective obligations or duties hereunder.

                                     - 95 -
<PAGE>

                  The Depositor, the Servicer, the Seller and any director,
officer, employee or agent of the Depositor, the Seller or the Servicer, may
rely in good faith on any document of any kind which, prima facie, is properly
executed and submitted by any appropriate Person with respect to any matters
arising hereunder. The Depositor, the Servicer, the Seller, and any director,
officer, employee or agent of the Depositor, the Seller or the Servicer shall be
indemnified and held harmless by the Trust Fund against any loss, liability or
expense incurred in connection with any legal action relating to this Agreement
or the Certificates, other than any loss, liability or expense incurred in
connection with any legal action incurred by reason of its respective
misfeasance, bad faith, fraud or negligence, a breach of a representation or
warranty hereunder or (in the case of the Servicer) a breach of the Servicing
Standard in the performance of its respective duties or by reason of negligent
disregard of its respective obligations or duties hereunder. Neither the
Depositor, the Seller nor the Servicer shall be under any obligation to appear
in, prosecute or defend any legal action unless such action is related to its
respective duties under this Agreement and in its opinion does not expose it to
any expense or liability; provided, however, that the Depositor, the Seller or
the Servicer may in its discretion undertake any action related to its
obligations hereunder 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.

                  Section 3.27 Reports of Foreclosure and Abandonment of
Mortgaged Properties.

                  On or before the last day of February of each year beginning
in 2005, the Servicer shall file the reports of foreclosure and abandonment of
any Mortgaged Property required by Section 6050J of the Code with the Internal
Revenue Service and provide an Officer's Certificate certifying its compliance
with this Section 3.27 to the Trustee. The reports from the Servicer shall be in
form and substance sufficient to meet the reporting requirements imposed by such
Section 6050J.

                  Section 3.28 Protection of Assets.

                  (a) Except for transactions and activities entered into in
connection with the securitization that is the subject of this Agreement, the
Trust is not authorized and has no power to:

                  (1) borrow money or issue debt;

                  (2) merge with another entity, reorganize, liquidate or sell
assets; or

                  (3) engage in any business or activities.

(b) Each party to this Agreement agrees that it will not file an involuntary
bankruptcy petition against the Trustee or the Trust Fund or initiate any other
form of insolvency proceeding until after the Certificates have been paid.

                  Section 3.29 Net WAC Rate Carryover Reserve Account.

                  No later than the Closing Date, the Trustee shall establish
and maintain with itself a separate, segregated trust account titled, "Net WAC
Rate Carryover Reserve Account, U.S.

                                     - 96 -
<PAGE>

Bank National Association, as Trustee, in trust for the registered Holders of
2004-CB7 Trust, C-BASS Mortgage Loan Asset-Backed Certificates, Series 2004-CB7.

                  On each Distribution Date as to which there is a Net WAC Rate
Carryover Amount payable to the Offered Certificates and/or the Class B-4
Certificates, the Trustee has been directed by the Class X/N Certificateholders
to, and therefore shall, deposit into the Net WAC Rate Carryover Reserve Account
the amounts described in Section 4.02(B)(v) and (vi), rather than distributing
such amounts to the Class X/N Certificateholders. On each such Distribution
Date, the Trustee shall hold all such amounts for the benefit of the Holders of
the Class A Certificates and the Mezzanine Certificates, and shall distribute
such amounts to the Holders of the Class A Certificates and/or the Mezzanine
Certificates in the amounts and priorities set forth in Section 4.02(B).

                  For federal and state income tax purposes, the Class X/N
Certificateholders will be deemed to be the owners of the Net WAC Rate Carryover
Reserve Account and all amounts deposited into the Net WAC Rate Carryover
Reserve Account (other than amounts paid to the Net WAC Rate Carryover Reserve
Amount by the Cap Contracts) shall be treated as amounts distributed by REMIC 6
to the Holders of the Class X/N Certificates. Upon the termination of the Trust,
or the payment in full of the Offered Certificates and the Class B-2, Class B-3
and Class B-4 Certificates, all amounts remaining on deposit in the Net WAC Rate
Carryover Reserve Account shall be released by the Trust and distributed to the
Class X/N Certificateholders or their designees. The Net WAC Rate Carryover
Reserve Account shall be part of the Trust but not part of any REMIC and any
payments to the Holders of the Offered Certificates or the Class B-4
Certificates of Net WAC Rate Carryover Amounts shall not be payments with
respect to a "regular interest" in a REMIC within the meaning of Code Section
860(G)(a)(1).

                  By accepting a Class X/N Certificate, each Class X/N
Certificateholder hereby agrees to direct the Trustee, and the Trustee hereby is
directed, to deposit into the Net WAC Rate Carryover Reserve Account the amounts
described above on each Distribution Date as to which there is any Net WAC Rate
Carryover Amount rather than distributing such amounts to the Class X/N
Certificateholders. By accepting a Class X/N Certificate, each Class X/N
Certificateholder further agrees that such direction is given for good and
valuable consideration, the receipt and sufficiency of which is acknowledged by
such acceptance.

                  Amounts on deposit in the Net WAC Rate Carryover Reserve
Account shall remain uninvested.

                  For federal tax return and information reporting, the value of
the right of the (i) Group I Certificates, (ii) Group II Certificates, (iii)
Mezzanine Certificates (other than the Class B-2, Class B-3 and Class B-4
Certificates) and (iv) the Class B-2, Class B-3 and Class B-4 Certificates
Certificateholders to receive payments from the Net WAC Rate Carryover Reserve
Account in respect of any Net WAC Rate Carryover Amount shall be (i) $60,000.00,
(ii) $0.00, (iii) $70,000 and (iv) $0.00, respectively.

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<PAGE>

                  Section 3.30 Advance Facility.

                  (a) The Servicer is hereby authorized to enter into a
financing or other facility (any such arrangement, an "Advance Facility"), the
documentation for which complies with Section 3.30(e) below, under which (1) the
Servicer assigns or pledges its rights under this Agreement to be reimbursed for
any or all Advances and/or Servicing Advances to (i) a Person, which may be a
special-purpose bankruptcy-remote entity (an "SPV"), (ii) a Person, which may
simultaneously assign or pledge such rights to an SPV or (iii) a lender (a
"Lender"), which, in the case of any Person or SPV of the type described in
either of the preceding clauses (i) or (ii), may directly or through other
assignees and/or pledgees, assign or pledge such rights to a Person, which may
include a trustee acting on behalf of holders of debt instruments (any such
Person or any such Lender, an "Advance Financing Person"), and/or (2) an Advance
Financing Person agrees to fund all the Advances and/or Servicing Advances
required to be made by the Servicer pursuant to this Agreement. No consent of
the Trustee, Certificateholders or any other party shall be required before the
Servicer may enter into an Advance Facility nor shall the Trustee or the
Certificateholders be a third party beneficiary of any obligation of an Advance
Financing Person to the Servicer. Notwithstanding the existence of any Advance
Facility under which an Advance Financing Person agrees to fund Advances and/or
Servicing Advances, (A) the Servicer (i) shall remain obligated pursuant to this
Agreement to make Advances and/or Servicing Advances pursuant to and as required
by this Agreement and (ii) shall not be relieved of such obligations by virtue
of such Advance Facility and (B) neither the Advance Financing Person nor any
Servicer's Assignee (as hereinafter defined) shall have any right to proceed
against or otherwise contact any Mortgagor for the purpose of collecting any
payment that may be due with respect to any related Mortgage Loan or enforcing
any covenant of such Mortgagor under the related Mortgage Loan documents.

                  (b) If the Servicer enters into an Advance Facility, the
Servicer and the related Advance Financing Person shall deliver to the Trustee
at the address set forth in Section 11.05 hereof a written notice (an "Advance
Facility Notice"), stating (a) the identity of the Advance Financing Person and
(b) the identity of the Person (the "Servicer's Assignee") that will, subject to
Section 3.30(c) hereof, have the right to make withdrawals from the Collection
Account pursuant to Section 3.05 hereof to reimburse previously unreimbursed
Advances and/or Servicing Advances ("Advance Reimbursement Amounts"). Advance
Reimbursement Amounts (i) shall consist solely of amounts in respect of Advances
and/or Servicing Advances for which the Servicer would be permitted to reimburse
itself in accordance with Section 3.05 hereof, assuming the Servicer had made
the related Advance(s) and/or Servicing Advance(s) and (ii) shall not consist of
amounts payable to a successor Servicer in accordance with Section 3.05 hereof
to the extent permitted under Section 3.30(e) below.

                  (c) Notwithstanding the existence of an Advance Facility, the
Servicer, on behalf of the Advance Financing Person, shall be entitled to
receive reimbursements of Advances and/or Servicing Advances in accordance with
Section 3.05 hereof, which entitlement may be terminated by the Advance
Financing Person pursuant to a written notice to the Trustee in the manner set
forth in Section 11.05 hereof. Upon receipt of such written notice, the Servicer
shall no longer be entitled to receive reimbursement for any Advance
Reimbursement Amounts and the Servicer's Assignee shall immediately have the
right to receive from the Collection Account all Advance Reimbursement Amounts.
Notwithstanding the foregoing, and for the avoidance of

                                     - 98 -
<PAGE>

doubt, (i) the Servicer and/or the Servicer's Assignee shall only be entitled to
reimbursement of Advance Reimbursement Amounts hereunder pursuant to Section
3.05 of this Agreement and shall not otherwise be entitled to make withdrawals
of, or receive, Advance Reimbursement Amounts that shall be deposited in the
Distribution Account pursuant to Section 3.04(b) hereof, and (ii) none of the
Trustee or the Certificateholders shall have any right to, or otherwise be
entitled to, receive any Advance Reimbursement Amounts to which the Servicer or
Servicer's Assignee, as applicable, shall be entitled pursuant to Section 3.05
hereof. An Advance Facility may be terminated by the joint written direction of
the Servicer and the related Advance Financing Person. Written notice of such
termination shall be delivered to the Trustee in the manner set forth in Section
11.05 hereof. The Trustee shall have no duty or liability with respect to the
calculation of any Advance Reimbursement Amount and shall be entitled to rely
without independent investigation on the Advance Facility Notice and on such
Servicer's report of the amount of Advance Reimbursement Amounts and Servicing
Advance Reimbursement Amounts that were included in the remittance from such
Servicer to the Trustee pursuant to Section 4.07. Such Servicer shall maintain
and provide to any successor Servicer a detailed accounting on a loan-by-loan
basis as to amounts advanced by, pledged or assigned to, and reimbursed to any
Advance Financing Person. The successor Servicer shall be entitled to rely on
any such information provided by the predecessor Servicer, and the successor
Servicer shall not be liable for any errors in such information.

                  (d) [Reserved].

                  (e) As between a predecessor Servicer and its Advance
Financing Person, on the one hand, and a successor Servicer and its Advance
Financing Person, if any, on the other hand, Advance Reimbursement Amounts on a
loan-by-loan basis with respect to each Mortgage Loan as to which a Advance
and/or Servicing Advance shall have been made and be outstanding shall be
allocated on a "first-in, first out" basis. In the event the Servicer's Assignee
shall have received some or all of an Advance Reimbursement Amount related to
Advances and/or Servicing Advances that were made by a Person other than such
predecessor Servicer or its related Advance Financing Person in error, then such
Servicer's Assignee shall be required to remit any portion of such Advance
Reimbursement Amount to each Person entitled to such portion of such Advance
Reimbursement Amount. Without limiting the generality of the foregoing, the
Servicer shall remain entitled to be reimbursed by the Advance Financing Person
for all Advances and/or Servicing Advances funded by the Servicer to the extent
the related Advance Reimbursement Amounts have not been assigned or pledged to
such Advance Financing Person or Servicer's Assignee.

                  (f) For purposes of any certification of a Servicing Officer
of the Servicer made pursuant to Section 4.07(d), any Nonrecoverable Advance
referred to therein may have been made by the Servicer or any predecessor
Servicer. In making its determination that any Advance or Servicing Advance
theretofore made has become a Nonrecoverable Advance, the Servicer shall apply
the same criteria in making such determination regardless of whether such
Advance or Servicing Advance shall have been made by the Servicer or any
predecessor Servicer

                  (g) The Trustee shall not, as a result of the existence of any
Advance Facility, have any additional responsibility to track or monitor Advance
Reimbursement Amounts or any Advance Facility, and, except as expressly provided
in Section 3.30(c) above, is not and shall not

                                     - 99 -
<PAGE>
be obligated to make any payment with respect to any Advance Reimbursement
Amount. The Servicer hereby indemnifies the Trustee, the Trust Fund and any
successor Servicer, as applicable, from and against any claims, losses,
liabilities or damages resulting from any claim by the related Advancing Person,
except to the extent that such claim, loss, liability or damage resulted from or
arose out of negligence, recklessness or willful misconduct on the part of the
Trustee or the successor Servicer, or failure by the successor Servicer or the
Trustee to remit funds as required by this Agreement or the commission of an act
or omission to act by the successor Servicer or the Trustee, and the passage of
any applicable cure or grace period, such that a Servicer Event of Termination
under this Agreement occurs or such entity is subject to termination for cause
under this Agreement

                                     - 100 -
<PAGE>

                                   ARTICLE IV

                                  FLOW OF FUNDS

                  Section 4.01 Interest Distributions.

                  I. On each Distribution Date, the Trustee shall withdraw from
the Distribution Account the Group I Interest Remittance Amount and apply it in
the following order of priority (based upon the Mortgage Loan information
provided to it in the Remittance Report, upon which the Trustee may conclusively
rely):

                  (i) to the Trustee, the portion of the Trustee Fee related to
the Group I Mortgage Loans for such Distribution Date;

                  (ii) concurrently, to the Holders of the Group I Certificates,
on a PRO RATA basis based on the entitlement of each such Class, the applicable
Accrued Certificate Interest for such Distribution Date;

                  (iii) concurrently, to the Holders of the Group I
Certificates, on a PRO RATA basis based on the entitlement of each such Class,
the applicable Interest Carry Forward Amount for the Class AV-1 Certificates;

                  (iv) concurrently, to the Holders of the Group II
Certificates, on a PRO RATA basis based on the entitlement of each such Class,
the applicable Accrued Certificate Interest for such Classes for such
Distribution Date, to the extent remaining undistributed after the distribution
of the Group II Interest Remittance Amount as set forth in Section 4.01(II); and

                  (v) concurrently, to the Holders of the Group II Certificates,
on a PRO RATA basis based on the entitlement of each such Class, the applicable
Interest Carry Forward Amount for the Group II Certificates, to the extent
remaining undistributed after the distribution of the Group II Interest
Remittance Amount as set forth in Section 4.01(II).

                  II. On each Distribution Date, the Trustee shall withdraw from
the Distribution Account the Group II Interest Remittance Amount and apply it in
the following order of priority (based upon the Mortgage Loan information
provided to it in the Remittance Report, upon which the Trustee may conclusively
rely):

                  (i) to the Trustee, the portion of the Trustee Fee related to
the Group II Mortgage Loans for such Distribution Date;

                  (ii) concurrently, to the Holders of the Group II
Certificates, on a PRO RATA basis based on the entitlement of each such Class,
the applicable Accrued Certificate Interest for such Distribution Date;

                  (iii) concurrently, to the Holders of the Group II
Certificates, on a PRO RATA basis based on the entitlement of each such Class,
the applicable Interest Carry Forward Amount for the Group II Certificates;

                                    - 101 -
<PAGE>

                  (iv) concurrently, to the Holders of the Group I Certificates,
on a PRO RATA basis based on the entitlement of each such Class, the applicable
Accrued Certificate Interest for such Class for such Distribution Date, to the
extent remaining undistributed after the distribution of the Group I Interest
Remittance Amount as set forth in Section 4.01(I); and

                  (v) concurrently, to the Holders of the Group I Certificates,
on a PRO RATA basis based on the entitlement of each such Class, the applicable
Interest Carry Forward Amount for the Group I Certificates, to the extent
remaining undistributed after the distribution of the Group I Interest
Remittance Amount as set forth in Section 4.01(I).

                  III. On each Distribution Date, the Trustee shall withdraw
from the Distribution Account the remaining Interest Remittance Amount and apply
it in the following order of priority (based upon the Mortgage Loan information
provided to it in the Remittance Report, upon which the Trustee may conclusively
rely):

                    (i) to the Holders of the Class M-1 Certificates, the
               Accrued Certificate Interest thereon for such Distribution Date;

                    (ii) to the Holders of the Class M-2 Certificates, the
               Accrued Certificate Interest thereon for such Distribution Date;

                    (iii) to the Holders of the Class M-3 Certificates, the
               Accrued Certificate Interest thereon for such Distribution Date;

                    (iv) to the Holders of the Class B-1 Certificates, the
               Accrued Certificate Interest thereon for such Distribution Date;

                    (v) to the Holders of the Class B-2 Certificates, the
               Accrued Certificate Interest thereon for such Distribution Date;

                    (vi) to the Holders of the Class B-3 Certificates, the
               Accrued Certificate Interest thereon for such Distribution Date;

                    (vii) to the Holders of the Class B-4 Certificates, the
               Accrued Certificate Interest thereon for such Distribution Date;
               and

                    (viii) the amount, if any, of the Interest Remittance Amount
               remaining after application with respect to the priorities set
               forth above will be applied as described under Section 4.02(B)
               hereof.

                  With respect to any distributions to be made on the Class B-2
Certificates, the Class B-3 Certificates or the Class B-4 Certificates pursuant
to this Section 4.01, such distributions will be made first, on the Class B-2
Interest, the Class B-3 Interest or the Class B-4 Interest, as applicable, and
then, on the related Class of Certificates.

                  Section 4.02 Distributions of Principal and Monthly Excess
Cashflow Amounts.

                  (A) Distributions of Principal:

                                    - 102 -
<PAGE>

                  I. On each Distribution Date (a) prior to the Stepdown Date or
(b) on which a Trigger Event is in effect, distributions in respect of principal
to the extent of the Group I Principal Remittance Amount will be made to the
Holders of the Group I Certificates (allocated among the Group I Certificates in
the priority described below), until the Certificate Principal Balances thereof
have been reduced to zero.

                  II. On each Distribution Date (a) prior to the Stepdown Date
or (b) on which a Trigger Event is in effect, distributions in respect of
principal to the extent of the Group II Principal Remittance Amount will be made
to the Holders of the Group II Certificates (allocated among the Group II
Certificates in the priority described below), until the Certificate Principal
Balances thereof have been reduced to zero.

                  III. On each Distribution Date (a) prior to the Stepdown Date
or (b) on which a Trigger Event is in effect, distributions in respect of
principal to the extent of the Principal Remittance Amount remaining
undistributed for such Distribution Date will be made in the following amounts
and order of priority:

                  (i) if, following the distribution of the Group I Principal
Remittance Amount as set forth in Section 4.02(A)(I), the Group I Enhancement
Amount is less than the Group I Targeted Enhancement Amount, to the Holders of
the Group I Certificates (allocated among the Group I Certificates in the
priority described below), until the Group I Enhancement Amount is equal to the
Group I Targeted Enhancement Amount;

                  (ii) if, following the distribution of the Group II Principal
Remittance Amount as set forth in Section 4.02(A)(II), the Group II Enhancement
Amount is less than the Group II Targeted Enhancement Amount, to the Holders of
the Group II Certificates (allocated among the Group II Certificates in the
priority described below), until the Group II Enhancement Amount is equal to the
Group II Targeted Enhancement Amount;

                  (iii) to the Holders of the Group I Certificates (allocated
among the Group I Certificates in the priority described below) and the Group II
Certificates (allocated among the Group II Certificates in the priority
described below), in that order, until the Certificate Principal Balances
thereof have been reduced to zero; and

                  (iv) sequentially, to the Holders of the Class M-1, Class M-2,
Class M-3, Class B-1, Class B-2, Class B-3 and Class B-4 Certificates, in that
order, until the Certificate Principal Balances thereof have been reduced to
zero.

                  IV. On each Distribution Date (a) on or after the Stepdown
Date and (b) on which a Trigger Event is not in effect, distributions in respect
of principal to the extent of the Group I Principal Remittance Amount shall be
made to the Holders of the Group I Certificates (allocated among the Group I
Certificates in the priority described below) in an amount equal to the Group I
Senior Principal Distribution Amount, until the Certificate Principal Balances
thereof have been reduced to zero.

                  V. On each Distribution Date (a) on or after the Stepdown Date
and (b) on which a Trigger Event is not in effect, distributions in respect of
principal to the extent of the Group II Principal Remittance Amount shall be
made to the Holders of the Group II Certificates

                                    - 103 -
<PAGE>

(allocated among the Group II Certificates in the priority described below) in
an amount equal to the Group II Senior Principal Distribution Amount, until the
Certificate Principal Balances thereof have been reduced to zero.

                  VI. On each Distribution Date (a) on or after the Stepdown
Date and (b) on which a Trigger Event is not in effect, distributions in respect
of principal to the extent of the Principal Remittance Amount (as reduced by the
amount of Overcollateralization Release Amount, if any) remaining undistributed
for such Distribution Date shall be made in the following amounts and order of
priority:

                  (i) if, following the distribution of the Group I Principal
Remittance Amount as set forth in Section 4.02(A)(IV), any portion of the Group
I Senior Principal Distribution Amount remains undistributed, to the Holders of
the Group I Certificates (allocated among the Group I Certificates in the
priority described below), until the Group I Senior Principal Distribution
Amount has been distributed in full;

                  (ii) if, following the distribution of the Group II Principal
Remittance Amount as set forth in Section 4.02(A)(V), any portion of the Group
II Senior Principal Distribution Amount remains undistributed, to the Holders of
the Group II Certificates (allocated among the Group II Certificates in the
priority described below), until the Group II Senior Principal Distribution
Amount has been distributed in full;

                  (iii) to the Holders of the Group I Certificates (allocated
among the Group I Certificates in the priority described below) and the Group II
Certificates (allocated among the Group II Certificates in the priority
described below), in that order, until the Senior Principal Distribution Amount
has been distributed in full; and

                  (iv) sequentially, to the Holders of the Class M-1, Class M-2,
Class M-3, Class B-1, Class B-2, Class B-3 and Class B-4 Certificates, the
related Subordinate Principal Distribution Amount, until the Certificate
Principal Balances thereof have been reduced to zero.

                  With respect to the Group I Certificates, all principal
distributions shall be distributed concurrently, on a PRO RATA basis (based on
(i) the Certificate Principal Balance of the Class AV-1 Certificates and (ii)
the aggregate Certificate Principal Balance of the Class AV-2A, Class AV-2B and
Class AV-2C Certificates, respectively) to (a) the Class AV-1 Certificates and
(b) sequentially, to the Class AV-2A, Class AV-2B and Class AV-2C Certificates,
in that order, until their respective Certificate Principal Balances have been
reduced to zero; provided, however, on any Distribution Date on which the
aggregate Certificate Principal Balance of the Mezzanine Certificates and the
Overcollateralization Amount has been reduced to zero, notwithstanding anything
contained herein to the contrary, all distributions of principal to the Group II
Certificates will be distributed concurrently, on a PRO RATA basis based on the
Certificate Principal Balance of each such Class.

                  With respect to the Group II Certificates, all principal
distributions will be distributed first, to the Holders of the Class AF-5
Certificates, the Lockout Distribution Percentage of such principal
distributions, until the Certificate Principal Balance of the Class AF-5
Certificates has been reduced to zero and second, sequentially, to the Holders
of the Class

                                    - 104 -
<PAGE>

AF-1, Class AF-2, Class AF-3, Class AF-4 and Class AF-5 Certificates, in that
order, until their respective Certificate Principal Balances have been reduced
to zero; provided, however, on any Distribution Date on which the aggregate
Certificate Principal Balance of the Mezzanine Certificates and the
Overcollateralization Amount has been reduced to zero, notwithstanding anything
contained herein to the contrary, all distributions of principal to the Group I
Certificates will be distributed concurrently, on a PRO RATA basis based on the
Certificate Principal Balance of each such Class.

                  (B) On each Distribution Date, any Monthly Excess Cashflow
Amount shall be distributed, to the extent available, in the following order of
priority on such Distribution Date:

                  I. to the extent of the Extra Principal Distribution Amount:

                  (i) (A) if, on any Distribution Date prior to the Stepdown
Date or any Distribution Date after the Stepdown Date on which a Trigger Event
is in effect, following the distribution of the Principal Remittance Amount as
set forth in Section 4.02(A)(I) and Section 4.02(A)(III), the Group I
Enhancement Amount is less than the Group I Targeted Enhancement Amount, to the
Holders of the Group I Certificates (allocated among the Group I Certificates
the priority described under Section 4.02(A)), to the extent of the Group I
Senior Excess Interest Amount, until the Group I Enhancement Amount is equal to
the Group I Targeted Enhancement Amount and (B) if, on any Distribution Date
after the Stepdown Date on which a Trigger Event is not in effect, following the
distribution of the Principal Remittance Amount as set forth in Section
4.02(A)(IV) and Section 4.02(A)(VI), any portion of the Group I Senior Principal
Distribution Amount remains undistributed, to the Holders of the Group I
Certificates (allocated among the Group I Certificates the priority described
under Section 4.02(A)), to the extent of the Group I Senior Excess Interest
Amount, until the Group I Senior Principal Distribution Amount has been
distributed in full;

                  (ii) (A) if, on any Distribution Date prior to the Stepdown
Date or any Distribution Date after the Stepdown Date on which a Trigger Event
is in effect, following the distribution of the Principal Remittance Amount as
set forth in Section 4.02(A)(II) and Section 4.02(A)(III), the Group II
Enhancement Amount is less than the Group II Targeted Enhancement Amount, to the
Holders of the Group II Certificates (allocated among the Group II Certificates
in the priority described under Section 4.02(A)), to the extent of the Group II
Senior Excess Interest Amount, until the Group II Enhancement Amount is equal to
the Group II Targeted Enhancement Amount and (B) if, on any Distribution Date
after the Stepdown Date on which a Trigger Event is not in effect, following the
distribution of the Principal Remittance Amount as set forth in Section
4.02(A)(V) and Section 4.02(A)(VI), any portion of the Group II Senior Principal
Distribution Amount remains undistributed, to the Holders of the Group II
Certificates (allocated among the Group II Certificates in the priority
described under Section 4.02(A)), to the extent of the Group II Senior Excess
Interest Amount, until the Group II Senior Principal Distribution Amount has
been distributed in full;

                  (iii) (A) if, on any Distribution Date prior to the Stepdown
Date or any Distribution Date after the Stepdown Date on which a Trigger Event
is in effect, following the distribution of the Principal Remittance Amount as
set forth in Section 4.02(A)(I) and Section

                                    - 105 -
<PAGE>

4.02(A)(III) and the distribution in Section 4.02(B)(I)(i), the Group I
Enhancement Amount is less than the Group I Targeted Enhancement Amount, to the
Holders of the Group I Certificates (allocated among the Group I Certificates
the priority described under Section 4.02(A)), until the Group I Enhancement
Amount is equal to the Group I Targeted Enhancement Amount and (B) if, on any
Distribution Date after the Stepdown Date on which a Trigger Event is not in
effect, following the distribution of the Principal Remittance Amount as set
forth in Section 4.02(A)(IV) and Section 4.02(A)(VI) and the distribution in
Section 4.02(B)(I)(i), any portion of the Group I Senior Principal Distribution
Amount remains undistributed, to the Holders of the Group I Certificates
(allocated among the Group I Certificates the priority described under Section
4.02(A)) until the Group I Senior Principal Distribution Amount has been
distributed in full;

                  (iv) (A) if, on any Distribution Date prior to the Stepdown
Date or any Distribution Date after the Stepdown Date on which a Trigger Event
is in effect, following the distribution of the Principal Remittance Amount as
set forth in Section 4.02(A)(II) and Section 4.02(A)(III) and the distribution
in Section 4.02(B)(I)(ii) above, the Group II Enhancement Amount is less than
the Group II Targeted Enhancement Amount, to the Holders of the Group II
Certificates (allocated among the Group II Certificates in the priority
described under Section 4.02(A)), until the Group II Enhancement Amount is equal
to the Group II Targeted Enhancement Amount and (B) if, on any Distribution Date
after the Stepdown Date on which a Trigger Event is not in effect, following the
distribution of the Principal Remittance Amount as set forth in Section
4.02(A)(V) and Section 4.02(A)(VI) and the distribution in Section
4.02(B)(I)(ii), any portion of the Group II Senior Principal Distribution Amount
remains undistributed, to the Holders of the Group II Certificates (allocated
among the Group II Certificates in the priority described under Section
4.02(A)), until the Group II Senior Principal Distribution Amount has been
distributed in full;

                  (v) (A) on any Distribution Date prior to the Stepdown Date or
any Distribution Date after the Stepdown Date on which a Trigger Event is in
effect, to the Holders of the Group I Certificates (allocated among the Group I
Certificates in the priority described under Section 4.02(A)) and the Group II
Certificates (allocated among the Group II Certificates the priority described
under Section 4.02(A)), in that order, until the Certificate Principal Balances
thereof have been reduced to zero and (B) on any Distribution Date after the
Stepdown Date on which a Trigger Event is not in effect, to the Holders of the
Group I Certificates (allocated among the Group I Certificates in the priority
described under Section 4.02(A)) and the Group II Certificates (allocated among
the Group II Certificates the priority described under Section 4.02(A)), in that
order, until the Senior Principal Distribution Amount has been distributed in
full; and

                  (vi) (A) on any Distribution Date prior to the Stepdown Date
or any Distribution Date after the Stepdown Date on which a Trigger Event is in
effect, sequentially, to the Holders of the Class M-1, Class M-2, Class M-3,
Class B-1, Class B-2, Class B-3 and Class B-4 Certificates, in that order, until
the Certificate Principal Balances thereof have been reduced to zero and (B) if,
on any Distribution Date after the Stepdown Date on which a Trigger Event is not
in effect, following the distributions in Section 4.02(A)(VI), any portion of
the related Subordinate Principal Distribution Amount remains undistributed, to
the Holders of the Class M-1, Class M-2, Class M-3, Class B-1, Class B-2, Class
B-3 and Class B-4 Certificates, until the related Subordinate Principal
Distribution Amount has been distributed in full;

                                    - 106 -
<PAGE>

                  II. to the extent of any remaining Monthly Excess Cashflow
Amount:

                  (i) sequentially, to fund the Interest Carry Forward Amount
for the Class M-1, Class M-2, Class M-3, Class B-1, Class B-2, Class B-3 and
Class B-4 Certificates, in that order, if any;

                  (ii) to each Class of Class A Certificates, on a PRO RATA
basis based on the Certificate Principal Balance of each such Class (after
taking into account all distributions of principal to the Class A Certificates
on such Distribution Date), to fund the Class A Realized Loss Amortization
Amount for such Distribution Date;

                  (iii) sequentially, to fund (a) the Class M-1 Realized Loss
Amortization Amount, (b) Class M-2 Realized Loss Amortization Amount, (c) Class
M-3 Realized Loss Amortization Amount, (d) Class B-1 Realized Loss Amortization
Amount, (e) Class B-2 Realized Loss Amortization Amount, (f) Class B-3 Realized
Loss Amortization Amount and (g) Class B-4 Realized Loss Amortization Amount, in
that order, for such Distribution Date;

                  (iv) to the Net WAC Rate Carryover Reserve Account for
distribution to the Offered Certificates and the Mezzanine Certificates, the
aggregate amount of any Net WAC Rate Carryover Amount, after taking into account
amounts received under the Cap Contracts;

                  (v) from amounts distributed on the Class X/N Certificates, to
the Class N Certificates, (A) the Accrued Certificate Interest for the Class N
Certificates, (B) the unpaid Interest Carry Forward Amount for the Class N
Certificates and (C) any remaining Monthly Excess Cashflow Amount to reduce the
Class N Notional Amount, until the Class N Notional Amount has been reduced to
zero;

                  (vi) from amounts distributed on the Class X/N Certificates,
to the Class X Certificates, the Class X Distributable Amount for such
Distribution Date; and

                  (vii) any remaining amounts to the Holders of the Residual
Certificates (in respect of 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, as applicable).

                  Following the foregoing distributions, an amount equal to the
amount of Subsequent Recoveries deposited into the Collection Account pursuant
to Section 3.04(a) shall be applied to increase the Certificate Principal
Balance of the Class of Certificates with the Highest Priority up to the extent
of such Realized Losses previously allocated to that Class of Certificates
pursuant to Section 4.03. An amount equal to the amount of any remaining
Subsequent Recoveries shall be applied to increase the Certificate Principal
Balance of the Class of Certificates with the next Highest Priority, up to the
amount of such Realized Losses previously allocated to that Class of
Certificates pursuant to Section 4.03. Holders of such Certificates will not be
entitled to any distribution in respect of interest on the amount of such
increases for any Interest 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.

                                    - 107 -
<PAGE>

                  With respect to any distributions to be made on the Class B-2
Certificates, the Class B-3 Certificates, the Class B-4 Certificates, the Class
N Certificates or the Class X Certificates pursuant to this Section 4.02, such
distributions will be made first, on the Class B-2 Interest, the Class B-3
Interest, the Class B-4 Interest or the Class X/N Interest, as applicable, and
then, on the related Class of Certificates.

                  (C) On each Distribution Date, all Prepayment Charges
(including amounts deposited in connection with the full or partial waiver of
such Prepayment Charges pursuant to Section 3.01) shall be allocated to the
Class N Certificates in the priority set forth under Section 4.02(B)(xxix) for
so long as the Notional Amount of the Class N Certificates is greater than zero,
and to the Class X Certificates after the Class N Notional Amount has been
reduced to zero.

                  (D) On each Distribution Date, after making the distributions
of the Available Funds as set forth above, the Trustee will withdraw from the
Net WAC Rate Carryover Reserve Account, to the extent of amounts remaining on
deposit therein, the amount of any Net WAC Rate Carryover Amount for such
Distribution Date and distribute such amount in the following order of priority:

               (1) any amounts received by the Trustee in respect of the Cap
          Contract related to the Group I Certificates shall be distributed to
          the Group I Certificates, on a PRO RATA basis based on the Net WAC
          Rate Carryover Amount for each such Class, to the extent of the Net
          WAC Rate Carryover Amount for such Class for such Distribution Date;

               (2) any amounts received by the Trustee in respect of the Cap
          Contract related to the Class AF-1 Certificates shall be distributed
          to the Class AF-1 Certificates to the extent of the Net WAC Rate
          Carryover Amount for such Class for such Distribution Date;

               (3) any amounts received by the Trustee in respect of the Cap
          Contract related to the Mezzanine Certificates shall be distributed to
          the Mezzanine Certificates, on a PRO RATA basis based on the Net WAC
          Rate Carryover Amount for each such Class, to the extent of the Net
          WAC Rate Carryover Amount for each such Class for such Distribution
          Date;

               (4) any remaining amounts paid under the Cap Contracts (to the
          extent not distributed pursuant to (1), (2) or (3) above) and amounts
          deposited in the Net WAC Rate Carryover Reserve Account from the
          Monthly Excess Cashflow Amount shall be distributed as follows, in
          each case to the extent of the applicable Net WAC Rate Carryover
          Amount:

                           (a) concurrently, to each Class of Class A
                  Certificates, on a PRO RATA basis based on the Net WAC Rate
                  Carryover Amount for each such Class; and

                           (b) sequentially, to the Class M-1 Certificates, the
                  Class M-2 Certificates, the Class M-3 Certificates, the Class
                  B-1 Certificates, the Class B-2 Certificates, the Class B-3
                  Certificates and the Class B-4 Certificates, in that

                                    - 108 -
<PAGE>

                  order, to the extent of any remaining Net WAC Rate Carryover
                  Amount for such Class.

                  Section 4.03 Allocation of Losses.

                  (a) All Realized Losses on the Mortgage Loans allocated to any
Regular Certificate shall be allocated by the Trustee on each Distribution Date
as follows: first, to the Accrued Certificate Interest on the Class X/N Interest
as provided in Section 1.03 (after the allocation thereto of any Prepayment
Interest Shortfalls or Relief Act Interest Shortfalls as provided in Section
1.03); second, to the Overcollateralization Amount, until the
Overcollateralization Amount has been reduced to zero; third, to the Class B-4
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero; fourth, to the Class B-3 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates,
until the Certificate Principal Balance thereof has been reduced to zero; sixth,
to the Class B-1 Certificates, until the Certificate Principal Balance thereof
has been reduced to zero; seventh, to the Class M-3 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero; eighth, to the
Class M-2 Certificates, until the Certificate Principal Balance thereof has been
reduced to zero, ninth, to the Class M-1 Certificates, until the Certificate
Principal Balance thereof has been reduced to zero and tenth, to each Class of
Class A Certificates, on a PRO RATA basis based on the Certificate Principal
Balance of each such Class, until the Certificate Principal Balances thereof
have 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 A Certificate and
a Mezzanine Certificate on any Distribution Date shall be made by reducing the
Certificate Principal Balance thereof by the amount so allocated.

                  (b) (i) The REMIC 1 Marker Percentage of all Realized Losses
on the Mortgage Loans shall be allocated by the Trustee on each Distribution
Date to the following REMIC 1 Regular Interests in the specified percentages, as
follows: first, to Uncertificated Accrued Interest payable to REMIC 1 Regular
Interest LT1AA and REMIC 1 Regular Interest LT1ZZ up to an aggregate amount
equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively;
second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest
LT1AA and REMIC 1 Regular Interest LT1ZZ up to an aggregate amount equal to the
REMIC 1 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to
the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1
Regular Interest LT1B4 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 1 Regular
Interest LT1B4 has been reduced to zero; fourth, to the Uncertificated Principal
Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1B3 and
REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B3 has been
reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 1
Regular Interest LT1AA,

                                    - 109 -
<PAGE>

REMIC 1 Regular Interest LT1B2 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and
1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular
Interest LT1B2 has been reduced to zero; sixth to the Uncertificated Principal
Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1B1 and
REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B1 has been
reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1
Regular Interest LT1AA, REMIC 1 Regular Interest LT1M3 and REMIC 1 Regular
Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
Balance of REMIC 1 Regular Interest LT1M3 has been reduced to zero; eighth to
the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1
Regular Interest LT1M2 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 1 Regular
Interest LT1M2 has been reduced to zero; ninth to the Uncertificated Principal
Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1M1 and
REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M1 has been
reduced to zero and tenth, to the Uncertificated Principal Balances of REMIC 1
Regular Interest LT1AA, 98%, REMIC 1 Regular Interest LT1AV1, REMIC 1 Regular
Interest LT1AV2A, REMIC 1 Regular Interest LT1AV2B, REMIC 1 Regular Interest
LT1AV2C, REMIC 1 Regular Interest LT1AF1, REMIC 1 Regular Interest LT1AF2, REMIC
1 Regular Interest LT1AF3, REMIC 1 Regular Interest LT1AF4 and REMIC 1 Regular
Interest LT1AF5, 1% on a PRO RATA basis and REMIC 1 Regular Interest LT1ZZ, 1%,
respectively, until the Uncertificated Principal Balances of REMIC 1 Regular
Interest LT1AV1, REMIC 1 Regular Interest LT1AV2A, REMIC 1 Regular Interest
LT1AV2B, REMIC 1 Regular Interest LT1AV2C, REMIC 1 Regular Interest LT1AF1,
REMIC 1 Regular Interest LT1AF2, REMIC 1 Regular Interest LT1AF3, REMIC 1
Regular Interest LT1AF4 and REMIC 1 Regular Interest LT1AF5 have been reduced to
zero.

                  (ii) The REMIC 1 Sub WAC Allocation Percentage of all Realized
Losses shall be applied after all distributions have been made on each
Distribution Date first, so as to keep the Uncertificated Principal Balance of
each REMIC 1 Regular Interest ending with the designation "GRP" equal to 0.01%
of the aggregate Principal Balance of the Mortgage Loans in the related Loan
Group; second, to each REMIC 1 Regular Interest ending with the designation
"SUB," so that the Uncertificated Principal Balance of each such REMIC 1 Regular
Interest is equal to 0.01% of the excess of (x) the aggregate Principal Balance
of the Mortgage Loans in the related Loan Group over (y) the current Certificate
Principal Balance of the Class A Certificate in the related 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 1
Regular Interests such that the REMIC 1 Subordinated Balance Ratio is
maintained); and third, any remaining Realized Losses shall be allocated to
REMIC 1 Regular Interest LT1XX.

                  (c) Special Hazard Losses will be allocated as described
above, except that if the aggregate amount of such losses, as of any date of
determination, exceeds the greatest of (i) 1.0% of the Principal Balance of the
Mortgage Loans as of the Cut-off Date, (ii) two times the amount of the
Principal Balance of the largest Mortgage Loan as of the date of determination
and (iii) an amount equal to the current Principal Balances of the Mortgage
Loans in the largest zip-code concentration in the State of California as of the
date of determination, such excess losses will be allocated among all the
outstanding Classes of Certificates, including the Class B-2

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Interest, the Class B-3 Interest, the Class B-4 Interest and the Class X/N
Interest, PRO RATA, based on their respective Certificate Principal Balances or
Notional Amount, as applicable.

                  Section 4.04 Method of Distribution.

                  The Trustee shall make distributions in respect of a
Distribution Date to each Certificateholder of record on the related Record Date
(other than as provided in Section 10.01 respecting the final distribution), in
the case of Certificateholders of the Certificates, by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of such Certificates the aggregate initial Certificate
Principal Balance or Notional Amount of which is in excess of $5,000,000, or by
check mailed by first class mail to the address of the Person entitled thereto,
as such name and address shall appear on the Certificate Register, provided that
the Trustee may deduct a reasonable wire transfer fee from any payment made by
wire transfer. Distributions among Certificateholders shall be made in
proportion to the Percentage Interests evidenced by the Certificates held by
such Certificateholders.

                  Section 4.05 Distributions on Book-Entry Certificates.

                  Each distribution with respect to a Book-Entry Certificate
shall be paid to the Depository, which shall credit the amount of such
distribution to the accounts of its Depository Participants in accordance with
its normal procedures. Each Depository 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.
All such credits and disbursements with respect to a Book Entry Certificate are
to be made by the Depository and the Depository Participants in accordance with
the provisions of the Certificates. None of the Trustee, the Depositor, the
Servicer or the Seller shall have any responsibility therefor except as
otherwise provided by applicable law.

                  Section 4.06 Statements.

                  (a) On each Distribution Date, based, as applicable, on the
Mortgage Loan information contained in the Remittance Report, the Trustee shall
(i) prepare and forward by mail to each Holder of the Regular Certificates and
(ii) make available on its website at www.usbank.com/abs for access by each
Holder of the Regular Certificates, a statement as to the distributions made on
such Distribution Date:

               (i) the amount of the distribution made on such Distribution Date
          to the Holders of each Class of Certificates allocable to principal or
          reduction of Notional Amount, separately identified;

               (ii) the amount of the distribution made on such Distribution
          Date to the Holders of each Class of Certificates allocable to
          interest or Class X Distributable Amount, separately identified;

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               (iii) the Overcollateralization Amount, the Overcollateralization
          Release Amount, the Overcollateralization Deficiency and the
          Overcollateralization Target Amount as of such Distribution Date and
          the Monthly Excess Interest Amount and Monthly Excess Cashflow Amount
          for such Distribution Date;

               (iv) [reserved];

               (v) the aggregate amount of Advances for the related Collection
          Period;

               (vi) the Pool Balance at the close of business at the end of the
          related Collection Period;

               (vii) the number, weighted average remaining term to maturity and
          weighted average Mortgage Interest Rate of the Mortgage Loans as of
          the related Due Date;

               (viii) the number and aggregate unpaid Principal Balance of
          Mortgage Loans (a) 30 to 59 days past due on a contractual basis, (b)
          60 to 89 days past due on a contractual basis, (c) 90 or more days
          past due on a contractual basis, (d) as to which foreclosure
          proceedings have been commenced and (e) in bankruptcy as of the close
          of business on the last day of the calendar month preceding such
          Distribution Date;

               (ix) with respect to any Mortgage Loan that became an REO
          Property during the preceding calendar month, the loan number of such
          Mortgage Loan, the unpaid principal balance and the Principal Balance
          of such Mortgage Loan as of the date it became an REO Property;

               (x) the book value of any REO Property as of the close of
          business on the last Business Day of the calendar month preceding the
          Distribution Date, and, cumulatively, the total number and cumulative
          principal balance of all REO Properties as of the close of business of
          the last day of the preceding Collection Period;

               (xi) the aggregate amount of Principal Prepayments made during
          the related Prepayment Period;

               (xii) the aggregate amount of Prepayment Charges collected
          (including amounts deposited in connection with the full or partial
          waiver of such Prepayment Charges pursuant to Section 3.01) during the
          related Collection Period and the amounts thereof allocable to the
          Class N Certificates and the Class X Certificates;

               (xiii) the aggregate amount of Realized Losses incurred during
          the related Collection Period and the cumulative amount of Realized
          Losses;

               (xiv) the Certificate Principal Balance or Notional Amount, as
          applicable, of each Class of Certificates, after giving effect to the
          distributions, and allocations of Realized Losses or Applied Realized
          Loss Amounts, as applicable, made on such Distribution Date,
          separately identifying any reduction thereof due to allocations of
          Realized Losses or Applied Realized Loss Amounts;

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<PAGE>

               (xv) the Accrued Certificate Interest in respect of each Class of
          Class A Certificates and the Mezzanine Certificates for such
          Distribution Date, and the respective portions thereof, if any,
          remaining unpaid following the distributions made in respect of such
          Certificates on such Distribution Date and the amount of any Net WAC
          Rate Carryover Amounts;

               (xvi) the aggregate amount of any Prepayment Interest Shortfalls
          for such Distribution Date, to the extent not covered by payments by
          the Servicer pursuant to Section 3.23;

               (xvii) the amount of the Trustee Fee paid;

               (xviii) the Net WAC Rate Carryover Amounts distributed on such
          Distribution Date and the amounts remaining after giving effect to
          distributions thereof on such Distribution Date;

               (xix) any Overcollateralization Deficiency after giving effect to
          the distribution of principal on such Distribution Date;

               (xx) whether a Trigger Event has occurred and is continuing, and
          the cumulative Realized Losses, as a percentage of the original Pool
          Balance;

               (xxi) the Available Funds;

               (xxii) the rate at which interest accrues for each Class of
          Certificates for such Distribution Date;

               (xxiii) the Liquidation Report for such Distribution Date;

               (xxiv) the aggregate Principal Balance of Mortgage Loans
          purchased by the Servicer or Seller during the related Collection
          Period and indicating the Section of this Agreement requiring or
          allowing the purchase of each such Mortgage Loan; and

               (xxv) the aggregate Principal Balance of the Mortgage Loans
          repurchased by the Servicer (or an affiliate) during the related
          Collection Period in connection with Section 3.16.

                  The Trustee may fully rely upon and shall have no liability
with respect to information with respect to the Mortgage Loans provided by the
Servicer.

                  In the case of information furnished pursuant to subclauses
(i) through (iii) above, the amounts shall be expressed in a separate section of
the report as a dollar amount for each Class for each $1,000 original dollar
amount as of the Cut-off Date.

                  (b) Within a reasonable period of time after the end of each
calendar year, the Trustee shall furnish to each Person who at any time during
the calendar year was a Certificateholder of a Regular Certificate, if requested
in writing by such Person, such information as is reasonably necessary to
provide to such Person a statement containing the

                                    - 113 -
<PAGE>

information set forth in subclauses (i), (ii), (xv) and (xx) above, aggregated
for such calendar year or applicable portion thereof during which such Person
was a Certificateholder. Such obligation of the Trustee shall be deemed to have
been satisfied to the extent that substantially comparable information shall be
prepared and furnished by the Trustee to Certificateholders pursuant to any
requirements of the Code as are in force from time to time.

                  (c) On each Distribution Date, the Trustee shall forward to
the Residual Certificateholders a copy of the reports forwarded to the Regular
Certificateholders in respect of such Distribution Date with such other
information as the Trustee deems necessary or appropriate. Such obligation of
the Trustee shall be deemed to have been satisfied to the extent that
substantially comparable information shall be prepared and furnished to Residual
Certificateholders by the Trustee pursuant to any requirements of the Code as
from time to time in force.

                  Section 4.07 Remittance Reports; Advances.

                  (a) On the second Business Day following each Determination
Date but in no event less than four Business Days prior to the related
Distribution Date, the Servicer shall deliver to the Trustee by telecopy (or by
such other means as the Servicer and the Trustee may agree from time to time) a
Remittance Report with respect to the related Distribution Date. On the same
date, the Servicer shall forward to the Trustee by overnight mail a computer
readable magnetic tape or diskette or in such other medium as may be agreed
between the Servicer and the Trustee containing the information set forth in
such Remittance Report with respect to the related Distribution Date. Not later
than the close of business New York time on the Servicer Remittance Date, the
Servicer shall deliver or cause to be delivered to the Trustee in addition to
the information provided on the Remittance Report, such other information
reasonably available to it with respect to the Mortgage Loans as the Trustee may
reasonably request or order in order for the Trustee to perform the calculations
necessary to make the distributions contemplated by Section 4.01, 4.02 and 4.03
and to prepare the statements to Certificateholders contemplated by Section
4.06. The Trustee shall not be responsible to recompute, recalculate or verify
any information provided to it by the Servicer.

                  (b) The amount of Advances to be made by the Servicer for any
Distribution Date shall equal, subject to Section 4.07(d), (i) the aggregate
amount of Monthly Payments (net of the related Servicing Fee and other than the
portion of the Monthly Payment representing principal on any second lien
Mortgage Loan), due during the related Collection Period in respect of the
Actuarial Mortgage Loans, which Monthly Payments were delinquent on a
contractual basis as of the close of business on the related Determination Date
and (ii) with respect to each REO Property, which REO Property was acquired
during or prior to the related Prepayment Period and as to which such REO
Property an REO Disposition did not occur during the related Prepayment Period,
an amount equal to the excess, if any, of only the interest portion of the
Monthly Payments (net of the related Servicing Fee) that would have been due on
the related Due Date in respect of the related Mortgage Loans, over the net
income from such REO Property deposited in the Collection Account pursuant to
Section 3.13 for distribution on such Distribution Date. 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

                                    - 114 -
<PAGE>

payment that would have been due on the related Due Date based on the original
principal amortization schedule for the such Balloon Mortgage Loan.

                  On or before the close of business New York time on the
Servicer Remittance Date, the Servicer shall remit in immediately available
funds to the Trustee for deposit in the Distribution Account an amount equal to
the aggregate amount of Advances, if any, to be made in respect of the Mortgage
Loans and REO Properties for the related Distribution Date either (i) from its
own funds or (ii) from the Collection Account, to the extent of funds held
therein for future distribution (in which case it will cause to be made an
appropriate entry in the records of the Collection Account that amounts held for
future distribution have been, as permitted by this Section 4.07, used by the
Servicer in discharge of any such Advance) or (iii) in the form of any
combination of (i) and (ii) aggregating the total amount of Advances to be made
by the Servicer with respect to the Mortgage Loans and REO Properties. In
addition, the Servicer shall have the right to reimburse itself for any Advances
previously made from the Collection Account, to the extent of funds held therein
for future distribution. Any amounts held for future distribution and so used
shall be appropriately reflected in the Servicer's records and replaced by the
Servicer by deposit in the Collection Account on or before any future Servicer
Remittance Date to the extent that the Available Funds for the related
Distribution Date (determined without regard to Advances to be made on the
Servicer Remittance Date) shall be less than the total amount that would be
distributed to the Classes of Certificateholders pursuant to Section 4.01 and
4.02 on such Distribution Date if such amounts held for future distributions had
not been so used to make Advances. The Trustee will provide notice to the
Servicer by telecopy by the close of business on any Servicer Remittance Date in
the event that the amount remitted by the Servicer to the Trustee on such date
is less than the Advances required to be made by the Servicer for the related
Distribution Date, as set forth in the related Remittance Report.

                  (c) The obligation of the Servicer to make such Advances is
mandatory, notwithstanding any other provision of this Agreement but subject to
(d) below, and, with respect to any Mortgage Loan or REO Property, shall
continue until the earlier of such time as such Mortgage Loan is paid in full by
the Mortgagor or disposed of by the Trust, or until the recovery of all
Liquidation Proceeds thereon.

                  (d) Notwithstanding anything herein to the contrary, no
Advance or Servicing Advance shall be required to be made hereunder by the
Servicer if such Advance would, if made, constitute a Nonrecoverable Advance.
The determination by the Servicer that it has made a Nonrecoverable Advance or
that any proposed Advance, if made, would constitute a Nonrecoverable Advance,
shall be evidenced by an Officers' Certificate of the Servicer delivered to the
Depositor and the Trustee.

                  Section 4.08 REMIC Distributions.

                  (a) On each Distribution Date, the Trustee shall cause in the
following order of priority, the following amounts to be distributed by REMIC 1
to REMIC 2 on account of the REMIC 1 Regular Interests or withdrawn from the
Distribution Account and distributed to the Holders of the Class R Certificates
(in respect of the Class R-1 Interest), as the case may be:

                                    - 115 -
<PAGE>

               (i) to Holders of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular
          Interest LT1AV1, REMIC 1 Regular Interest LT1AV2A, REMIC 1 Regular
          Interest LT1AV2B, REMIC 1 Regular Interest LT1AV2C, REMIC 1 Regular
          Interest LT1AF1, REMIC 1 Regular Interest LT1AF2, REMIC 1 Regular
          Interest LT1AF3, REMIC 1 Regular Interest LT1AF4, REMIC 1 Regular
          Interest LT1AF5, REMIC 1 Regular Interest LT1M1, REMIC 1 Regular
          Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC 1 Regular
          Interest LT1B1, REMIC 1 Regular Interest LT1B2, REMIC 1 Regular
          Interest LT1B3, REMIC 1 Regular Interest LT1B4 and REMIC 1 Regular
          Interest LT1ZZ, PRO RATA, in an amount equal to (A) the Uncertificated
          Accrued Interest for such Distribution Date, plus (B) any amounts in
          respect thereof remaining unpaid from previous Distribution Dates.
          Amounts payable as Uncertificated Accrued Interest in respect of REMIC
          1 Regular Interest LT1ZZ shall be reduced and deferred when the REMIC
          1 Overcollateralized Amount is less than the REMIC 1
          Overcollateralization Target Amount, by the lesser of (x) the amount
          of such difference and (y) the Maximum LT1ZZ Uncertificated Accrued
          Interest Deferral Amount and such amount will be payable to the
          Holders of REMIC 1 Regular Interest LT1AV1, REMIC 1 Regular Interest
          LT1AV2A, REMIC 1 Regular Interest LT1AV2B, REMIC 1 Regular Interest
          LT1AV2C, REMIC 1 Regular Interest LT1AF1, REMIC 1 Regular Interest
          LT1AF2, REMIC 1 Regular Interest LT1AF3, REMIC 1 Regular Interest
          LT1AF4, REMIC 1 Regular Interest LT1AF5, REMIC 1 Regular Interest
          LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3,
          REMIC 1 Regular Interest LT1B1, REMIC 1 Regular Interest LT1B2, REMIC
          1 Regular Interest LT1B3 and REMIC 1 Regular Interest LT1B4 in the
          same proportion as the Overcollateralization Deficiency is allocated
          to the Corresponding Certificates and the Uncertificated Principal
          Balance of REMIC 1 Regular Interest LT1ZZ shall be increased by such
          amount;

               (ii) to Holders of REMIC 1 Regular Interest LT1SUB, REMIC 1
          Regular Interest LT1GRP, REMIC 1 Regular Interest LT2SUB, REMIC 1
          Regular Interest LT2GRP and REMIC 1 Regular Interest LT1XX, PRO RATA,
          in an amount equal to (A) the Uncertificated Accrued Interest for such
          Distribution Date, plus (B) any amounts in respect thereof remaining
          unpaid from previous Distribution Dates;

               (iii) to the Holders of REMIC 1 Regular Interests, in an amount
          equal to the remainder of the REMIC 1 Marker Allocation Percentage of
          Available Funds for such Distribution Date after the distributions
          made pursuant to clause (i) above, allocated as follows:

                           (a) 98.00% of such remainder to the Holders of REMIC
                  1 Regular Interest LT1AA until the Uncertificated Principal
                  Balance of such Uncertificated REMIC 1 Regular Interest is
                  reduced to zero;

                           (b) 2.00% of such remainder, first, to the Holders of
                  REMIC 1 Regular Interest LT1AV1, REMIC 1 Regular Interest
                  LT1AV2A, REMIC 1 Regular Interest LT1AV2B, REMIC 1 Regular
                  Interest LT1AV2C, REMIC 1 Regular Interest LT1AF1, REMIC 1
                  Regular Interest LT1AF2, REMIC 1 Regular Interest LT1AF3,
                  REMIC 1 Regular Interest LT1AF4, REMIC 1 Regular Interest
                  LT1AF5, REMIC 1 Regular Interest LT1M1, REMIC 1 Regular
                  Interest LT1M2,

                                    - 116 -
<PAGE>

                  REMIC 1 Regular Interest LT1M3, REMIC 1 Regular Interest
                  LT1B1, REMIC 1 Regular Interest LT1B2, REMIC 1 Regular
                  Interest LT1B3 and REMIC 1 Regular Interest LT1B4, in the
                  same proportion as principal payments are allocated to the
                  Corresponding Certificates, until the Uncertificated
                  Principal Balances of such REMIC 1 Regular Interests are
                  reduced to zero; and second, to the Holders of REMIC 1
                  Regular Interest LT1ZZ until the Uncertificated Principal
                  Balance of such REMIC 1 Regular Interest is reduced to zero;

provided, however, that (i) 98.00% and (ii) 2.00% of any principal payments that
are attributable to an Overcollateralization Release Amount shall be allocated
to Holders of (i) REMIC 1 Regular Interest LT1AA and (ii) REMIC 1 Regular
Interest LT1ZZ, respectively; and

               (iv) to the Holders of REMIC 1 Regular Interests, in an amount
          equal to the remainder of the REMIC 1 Sub WAC Allocation Percentage of
          Available Funds for such Distribution Date after the distributions
          made pursuant to clause (i) above, such that distributions of
          principal shall be deemed to be made to the REMIC 1 Regular Interests
          first, so as to keep the Uncertificated Principal Balance of each
          REMIC 1 Regular Interest ending with the designation "GRP" equal to
          0.01% of the aggregate Principal Balance of the Mortgage Loans in the
          related Loan Group; second, to each REMIC 1 Regular Interest ending
          with the designation "SUB," so that the Uncertificated Principal
          Balance of each such REMIC 1 Regular Interest is equal to 0.01% of the
          excess of (x) the aggregate Principal Balance of the Mortgage Loans in
          the related Loan Group over (y) the current Certificate Principal
          Balance of the Class A Certificate in the related 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 1 Regular Interests such that the REMIC 1
          Subordinated Balance Ratio is maintained); and third, any remaining
          principal to REMIC 1 Regular Interest LT1XX.

                  Notwithstanding the distributions pursuant to this Section
4.08, distribution of funds shall be made only in accordance with Section 4.01
and Section 4.02.

                  (b) On each Distribution Date, the Trustee shall cause in the
following order of priority, the following amounts to be distributed by REMIC 2
to REMIC 3 on account of the Class B-2 Interest or withdrawn from the
Distribution Account and distributed to the Holders of the Class R-X
Certificates (in respect of the Class R-3 Interest), as the case may be:

               (i) to the Holders of the Class B-2 Interest, in an amount equal
          to (A) the Accrued Certificate Interest for such Distribution Date,
          plus (B) any amounts in respect thereof remaining unpaid from previous
          Distribution Dates; and

               (ii) to the Holders of the Class B-2 Interest, until the
          Certificate Principal Balance of the Class B-2 Interest is reduced to
          zero.

                  (c) On each Distribution Date, the Trustee shall cause in the
following order of priority, the following amounts to be distributed by REMIC 2
to REMIC 4 on account of the Class B-3 Interest or withdrawn from the
Distribution Account and distributed to the Holders of the Class R-X
Certificates (in respect of the Class R-4 Interest), as the case may be:

                                    - 117 -
<PAGE>

               (i) to the Holders of the Class B-3 Interest, in an amount equal
          to (A) the Accrued Certificate Interest for such Distribution Date,
          plus (B) any amounts in respect thereof remaining unpaid from previous
          Distribution Dates; and

               (ii) to the Holders of the Class B-3 Interest, until the
          Certificate Principal Balance of the Class B-3 Interest is reduced to
          zero.

                  (d) On each Distribution Date, the Trustee shall cause in the
following order of priority, the following amounts to be distributed by REMIC 2
to REMIC 5 on account of the Class B-4 Interest or withdrawn from the
Distribution Account and distributed to the Holders of the Class R-X
Certificates (in respect of the Class R-5 Interest), as the case may be:

               (i) to the Holders of the Class B-4 Interest, in an amount equal
          to (A) the Accrued Certificate Interest for such Distribution Date,
          plus (B) any amounts in respect thereof remaining unpaid from previous
          Distribution Dates; and

               (ii) to the Holders of the Class B-4 Interest, until the
          Certificate Principal Balance of the Class B-4 Interest is reduced to
          zero.

                  (e) On each Distribution Date, the Trustee shall cause in the
following order of priority, the following amounts to be distributed by REMIC 2
to REMIC 6 on account of the Class X/N Interest or withdrawn from the
Distribution Account and distributed to the Holders of the Class R-X
Certificates (in respect of the Class R-6 Interest), as the case may be:

               (i) to the Holders of the Class X/N Interest, in an amount equal
          to (A) the Accrued Certificate Interest for such Distribution Date,
          plus (B) any amounts in respect thereof remaining unpaid from previous
          Distribution Dates; and

               (ii) to the Holders of the Class X/N Interest, until the
          Certificate Principal Balance of the Class X/N Interest is reduced to
          zero.

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<PAGE>

                                   ARTICLE V

                                THE CERTIFICATES

                  Section 5.01 The Certificates.

                  Each of the Class A Certificates, the Mezzanine Certificates,
the Class N Certificates, the Class X Certificates and the Residual Certificates
shall be substantially in the forms annexed hereto as exhibits, and shall, on
original issue, be executed by the Trustee and authenticated and delivered by
the Certificate Registrar to or upon the receipt of a Written Order to
Authenticate from the Depositor concurrently with the sale and assignment to the
Trustee of the Trust Fund. Each Class of the Class A Certificates and the
Mezzanine Certificates shall be initially evidenced by one or more Certificates
representing a Percentage Interest with a minimum dollar (or notional amount)
denomination of $25,000 and integral multiples of $1 in excess thereof. The
Class N, Class X and Residual Certificates are issuable only in minimum
Percentage Interests of 10%.

                  The Certificates shall be executed on behalf of the Trust by
manual or facsimile signature on behalf of the Trustee by a Responsible Officer.
Certificates bearing the manual or facsimile signatures of individuals who were,
at the time when such signatures were affixed, authorized to sign on behalf of
the Trustee shall bind the Trust, notwithstanding that such individuals or any
of them have ceased to be so authorized prior to the authentication and delivery
of such Certificates or did not hold such offices at the date of such
Certificate. No Certificate shall be entitled to any benefit under this
Agreement or be valid for any purpose, unless such Certificate shall have been
manually authenticated by the Certificate Registrar substantially in the form
provided for herein, and such authentication upon any Certificate shall be
conclusive evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder. All Certificates shall be dated the date
of their authentication. Subject to Section 5.02(c), the Class A Certificates
and the Mezzanine Certificates shall be Book-Entry Certificates. The Class N,
Class X and Residual Certificates shall not be Book-Entry Certificates but shall
be issued in fully registered certificate form.

                  Section 5.02 Registration of Transfer and Exchange of
Certificates.

                  (a) The Certificate Registrar shall cause to be kept at the
Corporate Trust Office of the Trustee a Certificate Register in which, subject
to such reasonable regulations as it may prescribe, the Certificate Registrar
shall provide for the registration of Certificates and of transfers and
exchanges of Certificates as herein provided. The Trustee shall initially serve
as Certificate Registrar for the purpose of registering Certificates and
transfers and exchanges of Certificates as herein provided. The Trustee as
Certificate Registrar shall be subject to the same standards of care,
limitations on liability and rights to indemnity as the Trustee, and the
provisions of Sections 8.01, 8.02, 8.03, 8.04, 8.05, 8.14, 8.15 and 8.16 shall
apply to the Certificate Registrar to the same extent as they apply to the
Trustee. Any Certificate Registrar appointed in accordance with this Section
5.02(a) may at any time resign by giving at least 30 days' advance written
notice of resignation to the Trustee, the Servicer and the Depositor, such
resignation to become effective upon appointment of a successor Certificate
Registrar.

                                    - 119 -
<PAGE>

                  Upon surrender for registration of transfer of any Certificate
at any office or agency of the Certificate Registrar maintained for such purpose
pursuant to the foregoing paragraph and, in the case of a Residual Certificate,
upon satisfaction of the conditions set forth below, the Trustee on behalf of
the Trust shall execute and the Certificate Registrar shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Certificates of the same aggregate Percentage Interest.

                  At the option of the Certificateholders, Certificates may be
exchanged for other Certificates in authorized denominations and the same
aggregate Percentage Interests, upon surrender of the Certificates to be
exchanged at any such office or agency. Whenever any Certificates are so
surrendered for exchange, the Trustee shall execute on behalf of the Trust and
the Certificate Registrar shall authenticate and deliver the Certificates which
the Certificateholder making the exchange is entitled to receive. Every
Certificate presented or surrendered for registration of transfer or exchange
shall (if so required by the Trustee or the Certificate Registrar) be duly
endorsed by, or be accompanied by a written instrument of transfer satisfactory
to the Trustee and the Certificate Registrar duly executed by, the Holder
thereof or his attorney duly authorized in writing.

                  (b) Upon original issuance, the Book-Entry Certificates shall
be issued in the form of one or more typewritten certificates, to be delivered
to the Depository, the initial Depository, by, or on behalf of, the Depositor;
or to, and deposited with the Certificate Custodian, on behalf of the
Depository, if directed to do so pursuant to instructions from the Depository.
Except as provided in paragraph (c) below, the Book-Entry Certificates shall at
all times remain registered in the name of the Depository or its nominee and at
all times: (i) registration of such Certificates may not be transferred by the
Trustee except to another Depository; (ii) the Depository shall maintain
book-entry records with respect to the Certificate Owners and with respect to
ownership and transfers of such Certificates; (iii) ownership and transfers of
registration of such Certificates on the books of the Depository shall be
governed by applicable rules established by the Depository; (iv) the Depository
may collect its usual and customary fees, charges and expenses from its
Depository Participants; (v) the Trustee shall for all purposes deal with the
Depository as representative of the Certificate Owners of the Certificates for
purposes of exercising the rights of Holders under this Agreement, and requests
and directions for and votes of such representative shall not be deemed to be
inconsistent if they are made with respect to different Certificate Owners; (vi)
the Trustee may rely and shall be fully protected in relying upon information
furnished by the Depository with respect to its Depository Participants and
furnished by the Depository Participants with respect to indirect participating
firms and Persons shown on the books of such indirect participating firms as
direct or indirect Certificate Owners; and (vii) the direct participants of the
Depository shall have no rights under this Agreement under or with respect to
any of the Certificates held on their behalf by the Depository, and the
Depository may be treated by the Trustee and its agents, employees, officers and
directors as the absolute owner of the Certificates for all purposes whatsoever.

                  All transfers by Certificate Owners of Book-Entry Certificates
shall be made in accordance with the procedures established by the Depository
Participant or brokerage firm representing such Certificate Owners. Each
Depository Participant shall only transfer Book Entry Certificates of
Certificate Owners that it represents or of brokerage firms for which it acts as
agent in accordance with the Depository's normal procedures. The parties hereto
are hereby

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authorized to execute a Letter of Representations with the Depository or take
such other action as may be necessary or desirable to register a Book-Entry
Certificate to the Depository.

                  (c) If (i)(x) the Depository or the Depositor advises the
Trustee in writing that the Depository is no longer willing or able to discharge
properly its responsibilities as Depository and (y) the Trustee or the Depositor
is unable to locate a qualified successor or (ii) after the occurrence of a
Servicer Event of Termination, the Certificate Owners of each Class of
Book-Entry Certificates representing Percentage Interests of such Classes
aggregating not less than 51% advises the Trustee and Depository through the
Financial Intermediaries and the Depository Participants in writing that the
continuation of a book-entry system through the Depository to the exclusion of
definitive, fully registered certificates (the "Definitive Certificates") to
Certificate Owners is no longer in the best interests of the Certificate Owners.
Upon surrender to the Certificate Registrar of the Book-Entry Certificates by
the Depository, accompanied by registration instructions from the Depository for
registration, the Trustee shall, at the Depositor's expense, in the case of (ii)
above, or the Seller's expense, in the case of (i) and (iii) above, execute on
behalf of the Trust and the Certificate Registrar shall authenticate the
Definitive Certificates. Neither the Depositor nor the Trustee shall be liable
for 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 Certificate Registrar, the Servicer,
any Paying Agent and the Depositor shall recognize the Holders of the Definitive
Certificates as Certificateholders hereunder.

                  (d) Except with respect to the initial transfer of the Private
Certificates by the Depositor, no transfer, sale, pledge or other disposition of
any Private Certificate shall be made unless such disposition is exempt from the
registration requirements of the Securities Act of 1933, as amended (the "1933
Act"), and any applicable state securities laws or is made in accordance with
the 1933 Act and laws. In the event of any such transfer, (i) unless such
transfer is made in reliance upon Rule 144A (as evidenced by the investment
letter delivered to the Certificate Registrar, in substantially the form
attached hereto as Exhibit J-2) under the 1933 Act, the Certificate Registrar
and the Depositor shall require a written Opinion of Counsel (which may be
in-house counsel) acceptable to and in form and substance reasonably
satisfactory to the Certificate Registrar and the Depositor that such transfer
may be made pursuant to an exemption, describing the applicable exemption and
the basis therefor, from the 1933 Act or is being made pursuant to the 1933 Act,
which Opinion of Counsel shall not be an expense of the Certificate Registrar or
the Depositor or (ii) the Certificate Registrar shall require the transferor to
execute a transferor certificate (in substantially the form attached hereto as
Exhibit L) and the transferee to execute an investment letter (in substantially
the form attached hereto as Exhibit J-1) acceptable to and in form and substance
reasonably satisfactory to the Depositor and the Certificate Registrar
certifying to the Depositor and the Certificate Registrar the facts surrounding
such transfer, which investment letter shall not be an expense of the
Certificate Registrar or the Depositor. The Holder of a Private Certificate
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Certificate Registrar and the Depositor 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 an ERISA Restricted Certificate shall be made
unless the Certificate Registrar shall have received either (i) a representation
from the transferee of such

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<PAGE>

Certificate, acceptable to and in form and substance satisfactory to the
Certificate Registrar and the Depositor, (such requirement is satisfied only by
the Certificate Registrar's receipt of a representation letter from the
transferee substantially in the form of Exhibit I hereto, as appropriate), to
the effect that such transferee is not an employee benefit plan or arrangement
subject to Section 406 of ERISA or a plan subject to Section 4975 of the Code,
nor a person acting on behalf of any such plan or arrangement nor using the
assets of any such plan or arrangement to effect such transfer or (ii) (except
in the case of a Residual, Class X or Class N Certificate) if the purchaser is
an insurance company, a representation that the purchaser is an insurance
company which is purchasing such Certificates with funds contained in an
"insurance company general account" (as such term is defined in Section V(e) of
Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60") and that the
purchase and holding of such Certificates are covered under Sections I and III
of PTCE 95-60 or (iii) (except in the case of a Residual Certificate) in the
case of any such ERISA Restricted Certificate presented for registration in the
name of an employee benefit plan subject to ERISA or a plan or arrangement
subject to Section 4975 of the Code (or comparable provisions of any subsequent
enactments), or a trustee of any such plan or any other person acting on behalf
of any such plan or arrangement or using such plan's or arrangement's assets, an
Opinion of Counsel satisfactory to the Certificate Registrar, to the effect that
the purchase and holding of such ERISA Restricted Certificate will not result in
a non-exempt prohibited transaction under ERISA and the Code and will not
subject the Servicer, the Trustee or the Certificate Registrar to any obligation
in addition to those expressly undertaken in this Agreement or to any liability.
For purposes of the preceding sentence, the representation in (i) or (ii) shall
be deemed to have been made to the Certificate Registrar by the acceptance by a
Certificate Owner of the beneficial interest in any such Class of ERISA
Restricted Certificates, unless the Certificate Registrar shall have received
from the transferee an alternative representation acceptable in form and
substance to the Depositor. Notwithstanding anything else to the contrary
herein, any purported transfer of an ERISA Restricted Certificate to or on
behalf of an employee benefit plan subject to ERISA in violation of this
paragraph as described above shall be void and of no effect.

                  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 appointed the Depositor or its designee as its attorney-in-fact
to negotiate the terms of any mandatory sale under clause (v) below and to
execute all instruments of transfer and to do all other things necessary in
connection with any such sale, and the rights of each Person acquiring any
Ownership Interest in a Residual Certificate are expressly subject to the
following provisions:

               (i) Each Person holding or acquiring any Ownership Interest in a
          Residual Certificate shall be a Permitted Transferee and shall
          promptly notify the Certificate Registrar of any change or impending
          change in its status as a Permitted Transferee.

               (ii) No Person shall acquire an Ownership Interest in a Residual
          Certificate unless such Ownership Interest is a PRO RATA undivided
          interest.

               (iii) In connection with any proposed transfer of any Ownership
          Interest in a Residual Certificate, the Certificate Registrar shall as
          a condition to registration of the

                                    - 122 -
<PAGE>

          transfer, require delivery to it, in form and substance satisfactory
          to it, of each of the following:

                  A. an affidavit in the form of Exhibit K hereto from the
proposed transferee to the effect that, among other things, such transferee is a
Permitted Transferee and 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; and

                  B. a covenant of the proposed transferee to the effect that
the proposed transferee agrees to be bound by and to abide by the transfer
restrictions applicable to the Residual Certificates.

               (iv) Any attempted or purported transfer of any Ownership
          Interest in a Residual Certificate in violation of the provisions of
          this Section shall be absolutely null and void and shall vest no
          rights in the purported transferee. If any purported transferee shall,
          in violation of the provisions of this Section, become a Holder of a
          Residual Certificate, then the prior Holder of such Residual
          Certificate that is a Permitted Transferee shall, upon discovery that
          the registration of transfer of such Residual Certificate was not in
          fact permitted by this Section, be restored to all rights as Holder
          thereof retroactive to the date of registration of transfer of such
          Residual Certificate. The Certificate Registrar 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 or for
          making any distributions due on such Residual Certificate to the
          Holder thereof or taking any other action with respect to such Holder
          under the provisions of this Agreement so long as the Certificate
          Registrar received the documents specified in clause (iii). The
          Trustee shall be entitled to recover from any Holder of a Residual
          Certificate that was in fact not a Permitted Transferee at the time
          such distributions were made all distributions made on such Residual
          Certificate. Any such distributions so recovered by the Trustee shall
          be distributed and delivered by the Trustee to the prior Holder of
          such Residual Certificate that is a Permitted Transferee.

               (v) If any Person other than a Permitted Transferee acquires any
          Ownership Interest in a Residual Certificate in violation of the
          restrictions in this Section, then the Certificate Registrar shall
          have the right but not the obligation, without notice to the Holder of
          such Residual Certificate or any other Person having an Ownership
          Interest therein, to notify the Depositor to arrange for the sale of
          such Residual Certificate. The proceeds of such sale, net of
          commissions (which may include commissions payable to the Depositor or
          its affiliates in connection with such sale), expenses and taxes due,
          if any, will be remitted by the Trustee to the previous Holder of such
          Residual Certificate that is a Permitted Transferee, except that in
          the event that the Trustee determines that the Holder of such Residual
          Certificate may be liable for any amount due under this Section or any
          other provisions of this Agreement, the Trustee may withhold a
          corresponding amount from such remittance as security for such claim.
          The terms and conditions of any sale under this clause (v) shall be
          determined in the sole discretion of the Trustee and it shall not be
          liable to any Person having an Ownership Interest in a Residual
          Certificate as a result of its exercise of such discretion.

                                    - 123 -
<PAGE>

               (vi) If any Person other than a Permitted Transferee acquires any
          Ownership Interest in a Residual Certificate in violation of the
          restrictions in this Section, then the Trustee will provide to the
          Internal Revenue Service, and to the persons specified in Sections
          860E(e)(3) and (6) of the Code, information needed to compute the tax
          imposed under Section 860E(e)(5) of the Code on transfers of residual
          interests to disqualified organizations. The Trustee shall be entitled
          to reasonable compensation for providing such information from the
          person to whom it is provided.

                  The foregoing provisions of this Section shall cease to apply
to transfers occurring on or after the date on which there shall have been
delivered to the Certificate Registrar, in form and substance satisfactory to
the Certificate Registrar, (i) written notification from each Rating Agency that
the removal of the restrictions on Transfer set forth in this Section will not
cause such Rating Agency to downgrade its rating of the Certificates and (ii) an
Opinion of Counsel to the effect that such removal will not cause any REMIC
hereunder to fail to qualify as a REMIC.

                  (e) No service charge shall be made for any registration of
transfer or exchange of Certificates of any Class, but the Certificate Registrar
may require payment of a sum sufficient to cover any tax or governmental charge
that may be imposed in connection with any transfer or exchange of Certificates.

                  All Certificates surrendered for registration of transfer or
exchange shall be cancelled by the Certificate Registrar and disposed of
pursuant to its standard procedures.

                  Section 5.03 Mutilated, Destroyed, Lost or Stolen
Certificates.

                  If (i) any mutilated Certificate is surrendered to the
Certificate Registrar or the Certificate Registrar receives evidence to its
satisfaction of the destruction, loss or theft of any Certificate and (ii) there
is delivered to the Trustee, the Depositor and the Certificate Registrar such
security or indemnity as may be required by them to save each of them harmless,
then, in the absence of notice to the Trustee or the Certificate Registrar that
such Certificate has been acquired by a bona fide purchaser, the Trustee shall
execute on behalf of the Trust, and the Certificate Registrar shall authenticate
and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
or stolen Certificate, a new Certificate of like tenor and Percentage Interest.
Upon the issuance of any new Certificate under this Section, the Trustee or the
Certificate Registrar 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 Trustee and the
Certificate Registrar) in connection therewith. Any duplicate Certificate issued
pursuant to this Section, shall constitute complete and indefeasible evidence of
ownership in the Trust, 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 Servicer, the Depositor, the Trustee, the Certificate
Registrar, any Paying Agent and any agent of the Servicer, the Depositor, the
Certificate Registrar, any Paying Agent or the Trustee may treat the Person,
including a Depository, in whose name any Certificate is registered as the owner
of such Certificate for the purpose of receiving distributions pursuant to

                                    - 124 -
<PAGE>

Section 4.01 and Section 4.02 and for all other purposes whatsoever, and none of
the Servicer, the Trust, the Trustee nor any agent of any of them shall be
affected by notice to the contrary.

                  Section 5.05 Appointment of Paying Agent.

                  The Paying Agent shall make distributions to
Certificateholders from the Distribution Account pursuant to Section 4.01 and
Section 4.02 and shall report the amounts of such distributions to the Trustee.
The duties of the Paying Agent may include the obligation (i) to withdraw funds
from the Collection Account pursuant to Section 3.05 and for the purpose of
making the distributions referred to above and (ii) to distribute statements and
provide information to Certificateholders as required hereunder. The Paying
Agent hereunder shall at all times be an entity duly incorporated and validly
existing under the laws of the United States of America or any state thereof,
authorized under such laws to exercise corporate trust powers and subject to
supervision or examination by federal or state authorities. The Paying Agent
shall initially be the Trustee. The Trustee may appoint a successor to act as
Paying Agent, which appointment shall be reasonably satisfactory to the
Depositor and the Rating Agencies. The Trustee as Paying Agent shall be subject
to the same standards of care, limitations on liability and rights to indemnity
as the Trustee, and the provisions of Sections 8.01, 8.02, 8.03, 8.04, 8.05,
8.14, 8.15 and 8.16 shall apply to the Paying Agent to the same extent as they
apply to the Trustee. Any Paying Agent appointed in accordance with this Section
5.02(a) may at any time resign by giving at least 30 days' advance written
notice of resignation to the Trustee, the Servicer and the Depositor, such
resignation to become effective upon appointment of a successor Paying Agent.

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                                   ARTICLE VI

                   THE SELLER, THE SERVICER AND THE DEPOSITOR

                  Section 6.01 Liability of the Seller, the Servicer and the
Depositor.

                  The Seller and the Servicer shall be liable in accordance
herewith only to the extent of the obligations specifically imposed upon and
undertaken by the Seller or Servicer, as the case may be, herein. The Depositor
shall be liable in accordance herewith only to the extent of the obligations
specifically imposed upon and undertaken by the Depositor.

                  Section 6.02 Merger or Consolidation of, or Assumption of the
Obligations of, the Seller, the Servicer or the Depositor.

                  Any entity into which the Seller, the Servicer or the
Depositor may be merged or consolidated, or any entity resulting from any
merger, conversion or consolidation to which the Seller, the Servicer or the
Depositor shall be a party, or any corporation succeeding to the business of the
Seller, the Servicer or the Depositor, shall be the successor of the Seller, the
Servicer or the Depositor, 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 Servicer shall satisfy all the requirements of Section 7.02 with
respect to the qualifications of a successor Servicer.

                  Section 6.03 Limitation on Liability of the Servicer and
Others.

                  Neither the Servicer, the Depositor nor any of the directors
or officers or employees or agents of the Servicer or the Depositor shall be
under any liability to the Trust or the Certificateholders for any action taken
or for refraining from the taking of any action by the Servicer in good faith
pursuant to this Agreement, or for errors in judgment; provided, however, that
this provision shall not protect the Servicer, the Depositor or any such Person
against any liability which would otherwise be imposed by reason of its willful
misfeasance, bad faith or gross negligence in the performance of duties of the
Servicer or the Depositor or by reason of its reckless disregard of its
obligations and duties of the Servicer or the Depositor hereunder; provided,
further, that this provision shall not be construed to entitle the Servicer to
indemnity in the event that amounts advanced by the Servicer to retire any
senior lien exceed Liquidation Proceeds (in excess of related liquidation
expenses) realized with respect to the related Mortgage Loan. The Servicer, the
Depositor and any director or officer or employee or agent of the Servicer or
the Depositor 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, the Depositor and any director or officer or employee
or agent of the Servicer or the Depositor shall be indemnified by the Trust and
held harmless against any loss, liability or expense incurred in connection with
any legal action relating to this Agreement or the Certificates, other than any
loss, liability or expense incurred by reason of its willful misfeasance, bad
faith or negligence in the performance of duties hereunder or by reason of its
reckless disregard of obligations and duties hereunder. The Servicer or the
Depositor may undertake any such action which it may deem necessary or desirable
in respect of this Agreement, and the rights and duties of the parties hereto
and the interests of the

                                    - 126 -
<PAGE>

Certificateholders hereunder. In such event, the reasonable legal expenses and
costs of such action and any liability resulting therefrom shall be expenses,
costs and liabilities of the Trust and the Servicer or the Depositor shall be
entitled to pay such expenses from the proceeds of the Trust or to be reimbursed
therefor pursuant to Section 3.05 upon presentation to the Trustee of
documentation of such expenses, costs and liabilities. The Servicer's right to
indemnity or reimbursement pursuant to this Section shall survive any
resignation or termination of the Servicer pursuant to Section 6.04 or 7.01 with
respect to any losses, expenses, costs or liabilities arising prior to such
resignation or termination (or arising from events that occurred prior to such
resignation or termination). This paragraph shall apply to the Servicer and the
Depositor solely in their capacities as Servicer and Depositor hereunder and in
no other capacities.

                  Section 6.04 Servicer Not to Resign.

                  Subject to the provisions of Section 7.01 and Section 6.02,
the Servicer shall not resign from the obligations and duties hereby imposed on
it except (i) upon determination that the performance of its obligations or
duties hereunder are no longer permissible under applicable law or are in
material conflict by reason of applicable law with any other activities carried
on by it or its subsidiaries or Affiliates, the other activities of the Servicer
so causing such a conflict being of a type and nature carried on by the Servicer
or its subsidiaries or Affiliates at the date of this Agreement or (ii) upon
satisfaction of the following conditions: (a) the Servicer has proposed a
successor servicer to the Trustee in writing and such proposed successor
servicer is reasonably acceptable to the Trustee; and (b) each Rating Agency
shall have delivered a letter to the Trustee prior to the appointment of the
successor servicer stating that the proposed appointment of such successor
servicer as Servicer hereunder will not result in the reduction or withdrawal of
the then current rating of the Regular Certificates or the ratings that are in
effect; provided, however, that no such resignation by the Servicer shall become
effective until such successor servicer or, in the case of (i) above, the
Trustee shall have assumed the Servicer's responsibilities and obligations
hereunder or the Trustee shall have designated a successor servicer in
accordance with Section 7.02. Any such resignation shall not relieve the
Servicer of responsibility for any of the obligations specified in Sections 7.01
and 7.02 as obligations that survive the resignation or termination of the
Servicer. Any such determination permitting the resignation of the Servicer
pursuant to clause (i) above shall be evidenced by an Opinion of Counsel to such
effect delivered to the Trustee. Any such determination permitting the
resignation of the Servicer shall be evidenced by an Opinion of Counsel to such
effect delivered to the Trustee.

                  The Trustee and the Depositor hereby specifically (i) consent
to the pledge and assignment by the Servicer of all the Servicer's right, title
and interest in, to and under this Agreement to the Servicing Rights Pledgee,
for the benefit of certain lenders, and (ii) provided that no Servicer Event of
Termination exists, agree that upon delivery to the Trustee by the Servicing
Rights Pledgee of a letter signed by the Servicer whereunder the Servicer shall
resign as Servicer under this Agreement, the Trustee shall appoint the Servicing
Rights Pledgee or its designee as successor Servicer, provided that at the time
of such appointment, the Servicing Rights Pledgee or such designee meets the
requirements of a successor Servicer pursuant to Section 7.02(a) and agrees to
be subject to the terms of this Agreement. If, pursuant to any provision hereof,
the duties of the Servicer are transferred to a successor, the entire amount of
the

                                    - 127 -
<PAGE>

Servicing Fee and other compensation payable to the Servicer pursuant hereto
shall thereafter be payable to such successor.

                  Section 6.05 Delegation of Duties.

                  In the ordinary course of business, the Servicer at any time
may delegate any of its duties hereunder to any Person, including any of its
Affiliates, who agrees to conduct such duties in accordance with standards
comparable to those set forth in Section 3.01. Such delegation shall not relieve
the Servicer of its liabilities and responsibilities with respect to such duties
and shall not constitute a resignation within the meaning of Section 6.04. The
Servicer shall provide the Trustee and the Rating Agencies with 60 days prior
written notice prior to the delegation of any of its duties to any Person other
than any of the Servicer's Affiliates or their respective successors and
assigns.

                                    - 128 -
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                                  ARTICLE VII

                                     DEFAULT

                  Section 7.01 Servicer Events of Termination.

                  (a) If any one of the following events ("Servicer Events of
Termination") shall occur and be continuing:

               (i) (A) The failure by the Servicer to make any Advance; or (B)
          any other failure by the Servicer to deposit in the Collection Account
          or Distribution Account any deposit 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
          shall have been given to the Servicer by the Trustee or by any Holder
          of a Regular Certificate evidencing at least 25% of the Voting Rights;
          or

               (ii) The failure by the Servicer to make any required Servicing
          Advance which failure continues unremedied for a period of 30 days, or
          the failure by the Servicer duly to observe or perform, in any
          material respect, any other covenants, obligations or agreements of
          the Servicer as set forth in this Agreement, which failure continues
          unremedied for a period of 30 days, after the date (A) on which
          written notice of such failure, requiring the same to be remedied,
          shall have been given to the Servicer by the Trustee or by any Holder
          of a Regular Certificate evidencing at least 25% of the Voting Rights
          or (B) actual knowledge of such failure by a Servicing Officer of the
          Servicer; or

               (iii) The entry against the Servicer of a decree or order by a
          court or agency or supervisory authority having jurisdiction in the
          premises for the appointment of a trustee, conservator, receiver or
          liquidator in any insolvency, conservatorship, receivership,
          readjustment of debt, marshalling of assets and liabilities or similar
          proceedings, or for the winding up or liquidation of its affairs, and
          the continuance of any such decree or order unstayed and in effect for
          a period of 60 days; or

               (iv) The Servicer shall voluntarily go into liquidation, consent
          to the appointment of a conservator or receiver or liquidator or
          similar person in any insolvency, readjustment of debt, marshalling 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 a decree or order of a court or agency or supervisory
          authority having jurisdiction in the premises for the appointment of a
          conservator, receiver, liquidator or similar person in any insolvency,
          readjustment of debt, marshalling of assets and liabilities or similar
          proceedings, or for the winding-up or liquidation of its affairs,
          shall have been entered against the Servicer and such decree or order
          shall have remained in force undischarged, unbonded or unstayed for a
          period of 60 days; or 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 or
          reorganization statute, make an assignment for the benefit of its
          creditors or voluntarily suspend payment of its obligations; or

                                    - 129 -
<PAGE>

               (v) The aggregate amount of cumulative Realized Losses incurred
          since the Cut-off Date through the last day of the related Collection
          Period divided by the initial Pool Balance exceeds the applicable
          percentages set forth below with respect to such Distribution Date:

                 DISTRIBUTION DATE OCCURRING IN                  PERCENTAGE
                 ------------------------------                  ----------
                November 2006 through October 2007                  3.75%
                November 2007 through October 2008                  4.20%
                November 2008 through October 2009                  6.00%
                November 2009 through October 2010                  7.50%
                November 2010 and thereafter                        9.00%

                  (b) Then, and in each and every such case, so long as a
Servicer Event of Termination shall not have been remedied within the applicable
grace period, (x) with respect solely to clause (i)(A) above, if such Advance is
not made by 2:00 P.M., New York time, on the Business Day immediately following
the Servicer Remittance Date, the Trustee may terminate all of the rights and
obligations of the Servicer under this Agreement and the Trustee, or a successor
servicer appointed in accordance with Section 7.02, shall immediately make such
Advance and assume, pursuant to Section 7.02, the duties of a successor Servicer
and (y) in the case of (i)(B), (ii), (iii), (iv) and (v) above, the Trustee
shall, at the direction of the Holders of each Class of Regular Certificates
evidencing Percentage Interests aggregating not less than 51%, by notice then
given in writing to the Servicer and the Trustee, terminate all of the rights
and obligations of the Servicer as servicer under this Agreement. Any such
notice to the Servicer shall also be given to each Rating Agency, the Depositor
and the Seller. On or after the receipt by the Servicer and the Trustee of such
written notice, all authority and power of the Servicer under this Agreement,
whether with respect to the Certificates 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 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 of each
Mortgage Loan and Related Documents or otherwise. The Servicer agrees to
cooperate with the Trustee (or the applicable successor Servicer) in effecting
the termination of the responsibilities and rights of the Servicer hereunder,
including, without limitation, the delivery to the successor Servicer of all
documents and records requested by it to enable it to assume the Servicer's
functions under this Agreement within ten Business Days subsequent to such
notice, the transfer within one Business Day subsequent to such notice to the
Trustee (or the applicable successor Servicer) for the administration by it of
all cash amounts that shall at the time be held by the Servicer and to be
deposited by it in the Collection Account, the Distribution Account, any REO
Account or any Escrow Account or that have been deposited by the Servicer in
such accounts or thereafter received by the Servicer with respect to the
Mortgage Loans or any REO Property received by the Servicer. All reasonable
costs and expenses (including attorneys' fees) incurred in connection with
transferring the servicing to the successor Servicer and amending this Agreement
to reflect such succession as Servicer pursuant to this Section shall be paid by
the predecessor Servicer (or if the predecessor Servicer is the Trustee, the
initial Servicer) upon presentation of reasonable documentation of such costs
and expenses.

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                  Section 7.02 Trustee to Act; Appointment of Successor.

                  (a) Within 90 days of the time the Servicer and the Trustee
receives a notice of termination or resignation pursuant to Section 7.01 or
6.04, the Trustee (or such other successor Servicer as is approved in accordance
with this Agreement) shall be the successor in all respects to the Servicer in
its capacity as servicer under this Agreement and the transactions set forth or
provided for herein and shall be subject to all the responsibilities, duties and
liabilities relating thereto placed on the Servicer by the terms and provisions
hereof arising on and after its succession. As compensation therefor, the
Trustee (or such other successor Servicer) shall be entitled to such
compensation as the Servicer would have been entitled to hereunder if no such
notice of termination had been given. Notwithstanding the above, (i) if the
Trustee is unwilling to act as successor Servicer or (ii) if the Trustee is
legally unable so to act, the Trustee shall appoint or petition a court of
competent jurisdiction to appoint, any established housing and home finance
institution, bank or other mortgage loan or home equity loan servicer having a
net worth of not less than $50,000,000 as the successor to the Servicer
hereunder in the assumption of all or any part of the responsibilities, duties
or liabilities of the Servicer hereunder; provided, that the appointment of any
such successor Servicer will not result in the qualification, reduction or
withdrawal of the ratings assigned to the Certificates or the ratings that are
in effect by the Rating Agencies as evidenced by a letter to such effect from
the Rating Agencies. Pending appointment of a successor to the Servicer
hereunder, unless the Trustee is prohibited by law from so acting, the Trustee
shall act in such capacity as hereinabove provided. In connection with such
appointment and assumption, the successor shall be entitled to receive
compensation out of payments on Mortgage Loans in an amount equal to the
compensation which the Servicer would otherwise have received pursuant to
Section 3.18 (or such other compensation as the Trustee and such successor shall
agree, not to exceed the Servicing Fee). The successor servicer shall be
entitled to withdraw from the Collection Account all costs and expenses
associated with the transfer of the servicing to the successor servicer. The
appointment of a successor servicer shall not affect any liability of the
predecessor Servicer which may have arisen under this Agreement prior to its
termination as Servicer to pay any deductible under an insurance policy pursuant
to Section 3.12 or to indemnify the parties indicated in Section 3.26 pursuant
to the terms thereof, nor shall any successor Servicer be liable for any acts or
omissions of the predecessor Servicer or for any breach by such Servicer of any
of its representations or warranties contained herein or in any related document
or agreement. The Trustee and such successor shall take such action, consistent
with this Agreement, as shall be necessary to effectuate any such succession.

                  In the event of a Servicer Event of Termination,
notwithstanding anything to the contrary above, the Trustee and the Depositor
hereby agree that upon delivery to the Trustee by the Servicing Rights Pledgee
of a letter signed by the Servicer within ten Business Days of when notification
of such event shall have been provided to the Trustee, whereunder the Servicer
shall resign as Servicer under this Agreement, the Servicing Rights Pledgee or
its designee shall be appointed as successor Servicer (provided that at the time
of such appointment the Servicing Rights Pledgee or such designee meets the
requirements of a successor Servicer set forth above) and the Servicing Rights
Pledgee agrees to be subject to the terms of this Agreement.

                  (b) Any successor, including the Trustee, to the Servicer as
servicer shall during the term of its service as servicer continue to service
and administer the Mortgage Loans

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<PAGE>

for the benefit of Certificateholders, and maintain in force a policy or
policies of insurance covering errors and omissions in the performance of its
obligations as Servicer hereunder and a Fidelity Bond in respect of its
officers, employees and agents to the same extent as the Servicer is so required
pursuant to Section 3.12.

                  Section 7.03 Waiver of Defaults.

                  The Majority Certificateholders may, on behalf of all
Certificateholders, waive any events permitting removal of the Servicer as
servicer pursuant to this Article VII, provided, however, that the Majority
Certificateholders may not waive a default in making a required distribution on
a Certificate without the consent of the Holder of such Certificate. Upon any
waiver of a past default, such default shall cease to exist and any Servicer
Event of Termination arising therefrom shall be deemed to have been remedied for
every purpose of this Agreement. No such waiver shall extend to any subsequent
or other default or impair any right consequent thereto except to the extent
expressly so waived. Notice of any such waiver shall be given by the Trustee to
the Rating Agencies.

                  Section 7.04 Notification to Certificateholders.

                  (a) On any termination or appointment of a successor the
Servicer pursuant to this Article VII or Section 6.04, the Trustee shall give
prompt written notice thereof to the Certificateholders at their respective
addresses appearing in the Certificate Register and each Rating Agency.

                  (b) No later than 60 days after the occurrence of any event
which constitutes or which, with notice or a lapse of time or both, would
constitute a Servicer Event of Termination for five Business Days after a
Responsible Officer of the Trustee becomes aware of the occurrence of such an
event, the Trustee shall transmit by mail to all Certificateholders notice of
such occurrence unless such default or Servicer Event of Termination shall have
been waived or cured. Such notice shall be given to the Rating Agencies promptly
after any such occurrence.

                  Section 7.05 Survivability of Servicer Liabilities.

                  Notwithstanding anything herein to the contrary, upon
termination of the Servicer hereunder, any liabilities of the Servicer which
accrued prior to such termination shall survive such termination.

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                                  ARTICLE VIII

                                   THE TRUSTEE

                  Section 8.01 Duties of Trustee.

                  The Trustee, prior to the occurrence of a Servicer Event of
Termination of which a Responsible Officer of the Trustee shall have actual
knowledge and after the curing of all Servicer Events of Termination which may
have occurred, undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement. If a Servicer Event of Termination has
occurred (which has not been cured) of which a Responsible Officer has actual
knowledge, 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 person would exercise or use under the circumstances in the conduct
of such person's own affairs.

                  The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee which are specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them to determine whether they
conform to the requirements of this Agreement; provided, however, that the
Trustee shall not be responsible for the accuracy or content of any resolution,
certificate, statement, opinion, report, document, order or other instrument
furnished by the Servicer, the Seller or the Depositor hereunder. If any such
instrument is found not to conform in any material respect to the requirements
of this Agreement, the Trustee shall notify the Certificateholders of such
instrument in the event that the Trustee, after so requesting, does not receive
a satisfactorily corrected instrument.

                  No provision of this Agreement shall be construed to relieve
the Trustee from liability for its own negligent action, its own negligent
failure to act or its own misconduct; provided, however, that:

               (i) prior to the occurrence of a Servicer Event of Termination,
          and after the curing of all such Servicer Events of Termination which
          may have occurred, the duties and obligations of the Trustee shall be
          determined solely by the express provisions of this Agreement, the
          Trustee shall not 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 and, in the absence of bad faith on the part of
          the Trustee, the Trustee 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 and conforming
          to the requirements of this Agreement;

               (ii) the Trustee shall not be liable for an error of judgment
          made in good faith by a Responsible Officer of the Trustee unless it
          shall be proved that the Trustee was negligent in ascertaining or
          investigating the facts related thereto;

               (iii) the Trustee shall not 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 Majority

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<PAGE>

          Certificateholders relating to the time, method and place of
          conducting any proceeding for any remedy available to the Trustee or
          exercising or omitting to exercise any trust or power conferred upon
          the Trustee under this Agreement; and

               (iv) the Trustee shall not be charged with knowledge of any
          failure by the Servicer to comply with the obligations of the Servicer
          referred to in clauses (i) and (ii) of Section 7.01(a) or any Servicer
          Event of Termination unless a Responsible Officer of the Trustee at
          the applicable Corporate Trust Office obtains actual knowledge of such
          failure or the Trustee receives written notice of such failure from
          the Servicer or the Majority Certificateholders. In the absence of
          such receipt of such notice, the Trustee may conclusively assume that
          there is no Servicer Event of Termination.

                  The Trustee shall not be required to expend or risk its own
funds or otherwise incur financial liability in the performance of any of its
duties hereunder, or in the exercise of any of its rights or powers, if there is
reasonable ground for believing that the repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it, and
none of the provisions contained in this Agreement shall in any event require
the Trustee to perform, or be responsible for the manner of performance of, any
of the obligations of the Servicer under this Agreement, except with respect to
the Trustee during such time, if any, as the Trustee shall be the successor to,
and be vested with the rights, duties, powers and privileges of, the Servicer in
accordance with the terms of this Agreement.

                  The Trustee shall not have any duty (A) to see any recording,
filing, or depositing of this Agreement or any agreement referred to herein or
any financing statement or continuation statement evidencing a security
interest, or to see to the maintenance of any such recording or filing or
depositing or to any rerecording, refiling or redepositing of any thereof, (B)
to see to any insurance or (C) to see to the payment or discharge of any tax,
assessment, or other governmental charge or any lien or encumbrance of any kind
owing with respect to, assessed or levied against, any part of the Trust Fund
other than from funds available in the Distribution Account.

                  Section 8.02 Certain Matters Affecting the Trustee.

                  (a) Except as otherwise provided in Section 8.01:

               (i) the Trustee may request and rely upon, and shall be protected
          in acting or refraining from acting upon, any resolution, Officer's
          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;

               (ii) the Trustee may consult with counsel and any 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 with such advice or Opinion
          of Counsel;

               (iii) the Trustee shall not be under any obligation to exercise
          any of the rights or powers vested in it by this Agreement, or to
          institute, conduct or defend any litigation

                                    - 134 -
<PAGE>

          hereunder or in relation hereto, at the request, order or direction of
          the Certificateholders pursuant to the provisions of this Agreement,
          unless such Certificateholders shall have offered to the Trustee
          reasonable security or indemnity against the costs, expenses and
          liabilities which may be incurred therein or thereby; the right of the
          Trustee to perform any discretionary act enumerated in this Agreement
          shall not be construed as a duty, and the Trustee shall not be
          answerable for other than its negligence or willful misconduct in the
          performance of any such act;

               (iv) the Trustee shall not 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;

               (v) prior to the occurrence of a Servicer Event of Termination
          and after the curing of all Servicer Events of Termination which may
          have occurred, the Trustee shall not 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 documents, unless
          requested in writing to do so by the Majority Certificateholder;
          provided, however, that if the payment within a reasonable time to the
          Trustee 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, not reasonably assured to the Trustee by the security
          afforded to it by the terms of this Agreement, the Trustee may require
          reasonable indemnity against such cost, expense or liability as a
          condition to such proceeding. The reasonable expense of every such
          examination shall be paid by the Servicer or, if paid by the Trustee,
          shall be reimbursed by the Servicer upon demand. Nothing in this
          clause (v) shall derogate from the obligation of the Servicer to
          observe any applicable law prohibiting disclosure of information
          regarding the Mortgagors;

               (vi) the Trustee shall not be accountable, shall have any
          liability or make any representation as to any acts or omissions
          hereunder of the Servicer until such time as the Trustee may be
          required to act as Servicer pursuant to Section 7.02;

               (vii) the Trustee may execute any of the trusts or powers
          hereunder or perform any duties hereunder either directly or by or
          through agents or attorneys or a custodian and the Trustee shall not
          be responsible for any misconduct or negligence on the part of any
          such agent, attorney or custodian appointed by it with due care; and

               (viii) the right of the Trustee to perform any discretionary act
          enumerated in this Agreement shall not be construed as a duty, and the
          Trustee shall not be answerable for other than its negligence or
          willful misconduct in the performance of such act.

                  (b) The Depositor hereby directs the Trustee to execute,
deliver and perform its obligations under the Cap Contracts on the Closing Date
and thereafter on behalf of the Holders of the Group I Certificates, the Class
AF-1 Certificates and the Mezzanine Certificates. The Seller, the Depositor, the
Servicer and the Holders of the Group I Certificates, the Class AF-1
Certificates and the Mezzanine Certificates by their acceptance of such
Certificates, acknowledge and agree that the Trustee shall execute, deliver and
perform its obligations under

                                    - 135 -
<PAGE>

the Cap Contracts and shall do so solely in its capacity as Trustee of the Trust
Fund and not in its individual capacity.

                  Section 8.03 Trustee Not Liable for Certificates or Mortgage
Loans.

                  The recitals contained herein and in the Certificates (other
than the authentication of the Trustee on the Certificates) shall be taken as
the statements of the Seller, and the Trustee assumes no responsibility for the
correctness of the same. The Trustee makes no representations as to the validity
or sufficiency of this Agreement or of the Certificates (other than the
signature of the Trustee and authentication of the Trustee on the Certificates)
or of any Mortgage Loan or Related Document. The Trustee shall not be
accountable for the use or application by the Servicer, or for the use or
application of any funds paid to the Servicer in respect of the Mortgage Loans
or deposited in or withdrawn from the Collection Account by the Servicer. The
Trustee shall not at any time have any responsibility or liability for or with
respect to the legality, validity and enforceability of any Mortgage or any
Mortgage Loan, or the perfection and priority of any Mortgage or the maintenance
of any such perfection and priority, or for or with respect to the sufficiency
of the Trust or its ability to generate the payments to be distributed to
Certificateholders under this Agreement, including, without limitation: the
existence, condition and ownership of any Mortgaged Property; the existence and
enforceability of any hazard insurance thereon (other than if the Trustee shall
assume the duties of the Servicer pursuant to Section 7.02); the validity of the
assignment of any Mortgage Loan to the Trustee or of any intervening assignment;
the completeness of any Mortgage Loan; the performance or enforcement of any
Mortgage Loan (other than if the Trustee shall assume the duties of the Servicer
pursuant to Section 7.02); the compliance by the Depositor, the Seller or the
Servicer with any warranty or representation made under this Agreement or in any
related document or the accuracy of any such warranty or representation prior to
the Trustee's receipt of notice or other discovery of any non-compliance
therewith or any breach thereof; any investment of monies by or at the direction
of the Servicer or any loss resulting therefrom, it being understood that the
Trustee shall remain responsible for any Trust property that it may hold in its
individual capacity; the acts or omissions of any of the Servicer (other than if
the Trustee shall assume the duties of the Servicer pursuant to Section 7.02),
or any Mortgagor; any action of the Servicer (other than if the Trustee shall
assume the duties of the Servicer pursuant to Section 7.02), taken in the name
of the Trustee; the failure of the Servicer to act or perform any duties
required of it as agent of the Trustee hereunder; or any action by the Trustee
taken at the instruction of the Servicer (other than if the Trustee shall assume
the duties of the Servicer pursuant to Section 7.02); provided, however, that
the foregoing shall not relieve the Trustee of its obligation to perform its
duties under this Agreement. The Trustee shall not have any responsibility for
filing any financing or continuation statement in any public office at any time
or to otherwise perfect or maintain the perfection of any security interest or
lien granted to it hereunder.

                  Section 8.04 Trustee May Own Certificates.

                  The Trustee in its individual or any other capacity may become
the owner or pledgee of Certificates with the same rights as it would have if it
were not Trustee and may transact any banking and trust business with the
Seller, the Servicer, the Depositor or their Affiliates.

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<PAGE>

                  Section 8.05 Seller to Pay Trustee Fees and Expenses.

                  The Trustee shall withdraw from the Distribution Account on
each Distribution Date and pay to itself its fees in an aggregate amount equal
to the Trustee Fee pursuant to Section 4.01 and, to the extent the sum of the
Group I Interest Remittance Amount and the Group II Interest Remittance Amount
is at any time insufficient for such purpose, the Seller shall pay such fees as
reasonable compensation (which shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust) 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 of the Trustee, and
the Seller will pay or reimburse the Trustee upon their request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee
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 such party's negligence or bad faith or which is
the responsibility of Certificateholders or the Trustee hereunder.
Notwithstanding any other provision of this Agreement, including Section 2.03(a)
and Section 2.04, to the contrary, the Seller covenants and agrees to indemnify
the Trustee and its respective officers, directors, employees and agents from,
and hold each of them harmless against, any and all losses, liabilities,
damages, claims or expenses incurred in connection with any legal action
relating to this Agreement, the Certificates or incurred in connection with the
administration of the Trust, other than with respect to a party, any loss,
liability or expense incurred by reason of willful misfeasance, bad faith or
negligence of such party in the performance of their respective duties hereunder
or by reason of such party's reckless disregard of obligations and duties
hereunder. Anything in this Agreement to the contrary notwithstanding, in no
event shall the Trustee be liable for special, indirect or consequential loss or
damage of any kind whatsoever (including but not limited to lost profits), even
if the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action. The Trustee and any director, officer,
employee or agent of the Trustee shall be indemnified, to the extent not paid by
the Seller pursuant to this Section, by the Trust Fund and held harmless against
any loss, liability or expense (not including expenses, disbursements and
advances incurred or made by the Trustee, in the ordinary course of the
Trustee's performance in accordance with the provisions of this Agreement)
incurred by the Trustee or such party arising out of or in connection with the
acceptance or administration of its duties under this Agreement, other than any
loss, liability or expense incurred by reason of willful misfeasance, bad faith
or negligence in the performance by the Trustee of its duties under this
Agreement or by reason of the reckless disregard of the Trustee's obligations
and duties under this Agreement. This section shall survive termination of this
Agreement or the resignation or removal of any Trustee hereunder.

                  Section 8.06 Eligibility Requirements for Trustee.

                  The Trustee hereunder shall at all times be a Department of
Housing and Urban Development and Federal Housing Administration approved
mortgagee, an entity duly organized and validly existing under the laws of the
United States of America or any state thereof, authorized under such laws to
exercise corporate trust powers, having a combined capital and surplus of at
least $50,000,000 and a minimum long-term debt rating of BBB by Fitch and S&P
and a long term debt rating of at least A1 or better by Moody's, and subject to
supervision or

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<PAGE>

examination by federal or state authority. If such entity 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 8.06, the combined capital and surplus of such entity shall be deemed to
be its combined capital and surplus as set forth in its most recent report of
condition so published. The principal office of the Trustee (other than the
initial Trustee) shall be in a state with respect to which an Opinion of Counsel
has been delivered to such Trustee at the time such Trustee is appointed Trustee
to the effect that the Trust will not be a taxable entity under the laws of such
state. In case at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section 8.06, the Trustee shall resign immediately
in the manner and with the effect specified in Section 8.07.

                  Section 8.07 Resignation or Removal of Trustee.

                  The Trustee may at any time resign and be discharged from the
trusts hereby created by giving written notice thereof to the Depositor, the
Servicer and each Rating Agency. Upon receiving such notice of resignation, the
Depositor shall promptly appoint a successor Trustee by written instrument, in
duplicate, one copy of which instrument shall be delivered to the resigning
Trustee and one copy to the successor Trustee. If no successor Trustee shall
have been so appointed and having accepted appointment within 30 days after the
giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor Trustee.

                  If at any time the Trustee 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 Depositor, or if at any time the Trustee shall
be legally unable to act, or shall be adjudged a bankrupt or insolvent, or a
receiver of the Trustee or of their property shall be appointed, or any public
officer shall take charge or control of the Trustee or of their property or
affairs for the purpose of rehabilitation, conservation or liquidation, then the
Depositor may remove the Trustee. If the Depositor or the Servicer removes the
Trustee under the authority of the immediately preceding sentence, the Depositor
shall promptly appoint a successor Trustee by written instrument, in duplicate,
one copy of which instrument shall be delivered to the Trustee so removed and
one copy to the successor Trustee.

                  The Majority Certificateholders may at any time remove the
Trustee by written instrument or instruments delivered to the Servicer, the
Depositor and the Trustee and any expenses incurred by the Trustee in connection
with such removal shall be reimbursed to it by the Majority Certificateholders
promptly upon demand therefor; the Depositor shall thereupon use its best
efforts to appoint a successor Trustee in accordance with this Section.

                  Any resignation or removal of the Trustee and appointment of a
successor Trustee pursuant to any of the provisions of this Section 8.07 shall
not become effective until acceptance of appointment by the successor Trustee as
provided in Section 8.08.

                  Section 8.08 Successor Trustee.

                  Any successor Trustee appointed as provided in Section 8.07
shall execute, acknowledge and deliver to the Depositor, the Rating Agencies,
the Servicer and to its

                                    - 138 -
<PAGE>

predecessor Trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor Trustee shall become
effective, and such successor Trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally
named as Trustee. The Depositor, the Servicer and the predecessor Trustee shall
execute and deliver such instruments and do such other things as may reasonably
be required for fully and certainly vesting and confirming in the successor
Trustee all such rights, powers, duties and obligations.

                  No successor Trustee shall accept appointment as provided in
this Section 8.08 unless at the time of such acceptance such successor Trustee
shall be eligible under the provisions of Section 8.06 and the appointment of
such successor Trustee shall not result in a downgrading of the Regular
Certificates by any Rating Agency, as evidenced by a letter from each Rating
Agency.

                  Upon acceptance of appointment by a successor Trustee as
provided in this Section 8.08, the successor Trustee shall mail notice of the
appointment of a successor Trustee hereunder to all Holders of Certificates at
their addresses as shown in the Certificate Register and to each Rating Agency.

                  Section 8.09 Merger or Consolidation of Trustee.

                  Any entity into which the Trustee may be merged or converted
or with which it may be consolidated, or any entity resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any entity
succeeding to the business of the Trustee, shall be the successor of the Trustee
hereunder, provided such entity shall be eligible under the provisions of
Section 8.06 and 8.08, 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 of this Agreement, at any
time, for the purpose of meeting any legal requirements of any jurisdiction in
which any part of the Trust or any Mortgaged Property may at the time be
located, the Depositor 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 separate trustees, of all or any part of the
Trust, and to vest in such Person or Persons, in such capacity and for the
benefit of the Certificateholders, such title to the Trust, or any part thereof,
and, subject to the other provisions of this Section 8.10, such powers, duties,
obligations, rights and trusts as the Servicer and the Trustee may consider
necessary or desirable. Any such co-trustee or separate trustee shall be subject
to the written approval of the Servicer. If the Servicer shall not have joined
in such appointment within 15 days after the receipt by it of a request so to
do, or in the case a Servicer Event of Termination shall have occurred and be
continuing, the Trustee alone shall have the power to make such appointment. No
co-trustee or separate trustee hereunder shall be required to meet the terms of
eligibility as a successor Trustee under Section 8.06, and no notice to
Certificateholders of the appointment of any co-trustee or separate trustee

                                    - 139 -
<PAGE>

shall be required under Section 8.08. The Servicer shall be responsible for the
fees of any co-trustee or separate trustee appointed hereunder.

                  Every separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

               (i) all rights, powers, duties and obligations conferred or
          imposed upon the Trustee shall be conferred or imposed upon and
          exercised or performed by the Trustee and such separate trustee or
          co-trustee jointly (it being understood that such separate trustee or
          co-trustee is not authorized to act separately without the Trustee
          joining in such act), 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 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 or any
          portion thereof in any such jurisdiction) shall be exercised and
          performed singly by such separate trustee or co-trustee, but solely at
          the direction of the Trustee;

               (ii) no trustee hereunder shall be held personally liable by
          reason of any act or omission of any other trustee hereunder; and

               (iii) the Servicer and the Trustee, acting jointly may at any
          time accept the resignation of or remove any separate trustee or
          co-trustee except that following the occurrence of a Servicer Event of
          Termination, the Trustee acting alone may accept the resignation or
          remove any separate trustee or co-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 and a
copy thereof given to the Depositor, the Rating Agencies and the Servicer.

                  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.

                  Section 8.11 Limitation of Liability.

                  The Certificates are executed by the Trustee, not in its
individual capacity but solely as Trustee of the Trust, in the exercise of the
powers and authority conferred and vested in it by this Agreement. Each of the
undertakings and agreements made on the part of the Trustee

                                    - 140 -
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in the Certificates is made and intended not as a personal undertaking or
agreement by the Trustee but is made and intended for the purpose of binding
only the Trust.

                  Section 8.12 Trustee May Enforce Claims Without Possession of
Certificates.

                  (a) All rights of action and claims under this Agreement or
the Certificates may be prosecuted and enforced by the Trustee without the
possession of any of the Certificates or the production thereof in any
proceeding relating thereto, and such proceeding instituted by the Trustee shall
be brought in its own name or in its capacity as Trustee for the benefit of all
Holders of such Certificates, subject to the provisions of this Agreement. Any
recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursement and advances of the Trustee, its agents and
counsel, be for the ratable benefit of the Certificateholders in respect of
which such judgment has been recovered.

                  (b) The Trustee shall afford the Seller, the Depositor, the
Servicer and each Certificateholder upon reasonable notice during normal
business hours, access to all records maintained by the Trustee in respect of
its duties hereunder and access to officers of the Trustee responsible for
performing such duties. The Trustee shall cooperate fully with the Seller, the
Servicer, the Depositor and such Certificateholder and shall make available to
the Seller, the Servicer, the Depositor and such Certificateholder for review
and copying at the expense of the party requesting such copies, such books,
documents or records as may be requested with respect to the Trustee's duties
hereunder. The Seller, the Depositor, the Servicer and the Certificateholders
shall not have any responsibility or liability for any action or failure to act
by the Trustee and are not obligated to supervise the performance of the Trustee
under this Agreement or otherwise.

                  Section 8.13 Suits for Enforcement.

                  In case a Servicer Event of Termination or other default by
the Servicer or the Seller hereunder shall occur and be continuing, the Trustee
may proceed to protect and enforce its rights and the rights of the
Certificateholders under this Agreement by a suit, action or proceeding in
equity or at law or otherwise, whether for the specific performance of any
covenant or agreement contained in this Agreement or in aid of the execution of
any power granted in this Agreement or for the enforcement of any other legal,
equitable or other remedy, as the Trustee, being advised by counsel, and subject
to the foregoing, shall deem most effectual to protect and enforce any of the
rights of the Trustee and the Certificateholders.

                  Section 8.14 Waiver of Bond Requirement.

                  The Trustee shall be relieved of, and each Certificateholder
hereby waives, any requirement of any jurisdiction in which the Trust, or any
part thereof, may be located that the Trustee post a bond or other surety with
any court, agency or body whatsoever.

                  Section 8.15 Waiver of Inventory, Accounting and Appraisal
Requirement.

                  The Trustee shall be relieved of, and each Certificateholder
hereby waives, any requirement of any jurisdiction in which the Trust, or any
part thereof, may be located that the

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Trustee file any inventory, accounting or appraisal of the Trust with any court,
agency or body at any time or in any manner whatsoever.

                  Section 8.16 Compliance with National Housing Act of 1934.

                  In performing its duties hereunder with respect to FHA Loans,
the Trustee shall comply with all requirements of the National Housing Act of
1934, as amended.

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                                   ARTICLE IX

                              REMIC ADMINISTRATION

                  Section 9.01 REMIC Administration.

                  (a) REMIC elections as set forth in the Preliminary Statement
shall be made by the Trustee on Form 1066 or other appropriate federal tax or
information return for the taxable year ending on the last day of the calendar
year in which the Certificates are issued. The regular interests and residual
interest in each REMIC shall be as designated in the Preliminary Statement.

                  (b) The Closing Date is hereby designated as the "Startup Day"
of each REMIC within the meaning of section 860G(a)(9) of the Code.

                  (c) The Servicer shall pay any and all tax related expenses
(not including taxes) of each REMIC, including but not limited to any
professional fees or expenses related to audits or any administrative or
judicial proceedings with respect to each REMIC that involve the Internal
Revenue Service or state tax authorities, but only to the extent that (i) such
expenses are ordinary or routine expenses, including expenses of a routine audit
but not expenses of litigation (except as described in (ii)); or (ii) such
expenses or liabilities (including taxes and penalties) are attributable to the
negligence or willful misconduct of the Servicer in fulfilling its duties
hereunder. The Servicer shall be entitled to reimbursement of expenses to the
extent provided in clause (i) above from the Collection Account.

                  (d) The Trustee shall prepare, sign and file, all of the
REMICs' federal and state tax and information returns as the direct
representative each REMIC created hereunder. The expenses of preparing and
filing such returns shall be borne by the Trustee.

                  (e) The Holder of the Residual Certificate at any time holding
the largest Percentage Interest thereof shall be the "tax matters person" as
defined in the REMIC Provisions (the "Tax Matters Person") with respect to each
REMIC and shall act as Tax Matters Person for each REMIC. The Trustee, as agent
for the Tax Matters Person, shall perform on behalf of each REMIC all reporting
and other tax compliance duties that are the responsibility of such REMIC 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, if required by the Code, the REMIC Provisions, or other such guidance,
the Trustee, as agent for the Tax Matters Person, shall provide (i) to the
Treasury or other governmental authority such information as is necessary for
the application of any tax relating to the transfer of a Residual Certificate to
any disqualified person or organization and (ii) to the Certificateholders such
information or reports as are required by the Code or REMIC Provisions. The
Trustee, as agent for the Tax Matters Person, shall represent each REMIC in any
administrative or judicial proceedings relating to an examination or audit by
any governmental taxing authority, request an administrative adjustment as to
any taxable year of any REMIC, enter into settlement agreements with any
government taxing agency, extend any statute of limitations relating to any item
of any REMIC and otherwise act on behalf of any REMIC in relation to any tax
matter involving the Trust.

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<PAGE>

                  (f) The Trustee, the Servicer and the Holders of Certificates
shall take any action or cause the REMIC to take any action necessary to create
or maintain the status of each REMIC as a REMIC under the REMIC Provisions and
shall assist each other as necessary to create or maintain such status. Neither
the Trustee, the Servicer nor the Holder of any Residual Certificate shall take
any action, cause any REMIC created hereunder 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 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
Code Section 860F(a)(2) and the tax on prohibited contributions set forth on
Section 860G(d) of the Code) (either such event, an "Adverse REMIC Event")
unless the Trustee and the Servicer have received an Opinion of Counsel (at the
expense of the party seeking to take such action) to the effect that the
contemplated action will not endanger such status or result in the imposition of
such a tax. In addition, prior to taking any action with respect to any REMIC
created hereunder or the assets therein, or causing such REMIC to take any
action, which is not expressly permitted under the terms of this Agreement, any
Holder of a Residual Certificate will consult with the Trustee and the Servicer,
or their respective designees, in writing, with respect to whether such action
could cause an Adverse REMIC Event to occur with respect to any REMIC, and no
such Person shall take any such action or cause any REMIC to take any such
action as to which the Trustee or the Servicer has advised it in writing that an
Adverse REMIC Event could occur.

                  (g) Each Holder of a Residual Certificate shall pay when due
any and all taxes imposed on each REMIC created hereunder by federal or state
governmental authorities. To the extent that such Trust taxes are not paid by a
Residual Certificateholder, the Trustee shall pay any remaining REMIC taxes out
of current or future amounts otherwise distributable to the Holder of the
Residual Certificate in the REMICs or, if no such amounts are available, out of
other amounts held in the Distribution Account, and shall reduce amounts
otherwise payable to Holders of regular interests in the related REMIC.

                  (h) The Trustee, as agent for the Tax Matters Person, shall,
for federal income tax purposes, maintain books and records with respect to each
REMIC created hereunder on a calendar year and on an accrual basis.

                  (i) No additional contributions of assets shall be made to any
REMIC created hereunder, except as expressly provided in this Agreement with
respect to Eligible Substitute Mortgage Loans.

                  (j) Neither the Trustee nor the Servicer shall enter into any
arrangement by which any REMIC created hereunder will receive a fee or other
compensation for services.

                  (k) On or before April 15th of each calendar year beginning in
2005, the Servicer shall deliver to the Trustee and each Rating Agency an
Officers' Certificate stating the Servicer's compliance with the provisions of
this Section 9.01.

                  (l) The Trustee will apply for an Employee Identification
Number from the Internal Revenue Service via a Form SS-4 or other acceptable
method for all tax entities and shall complete the Form 8811.

                                    - 144 -
<PAGE>

                  (m) For federal income tax purposes, in the event that the
beneficial ownership of the Class N Certificates and the Class X Certificates is
held by separate persons for tax purposes, the Trustee shall treat the Class N
Certificates as debt of the Class X Certificateholders for federal income tax
purposes and shall not treat such Class of Certificates as an interest in any
REMIC created hereunder. In the event that the beneficial ownership of the Class
N Certificates and the Class X Certificates is held by the same person, the
Trustee shall treat the Class N Certificates as not having been issued for
federal income tax purposes so that the entire economic entitlement of the Class
N Certificates and Class X Certificates (excluding the Class X Certificates
right to receive amounts from the Net WAC Rate Carryover Reserve Account) will
represent a "regular interest" in REMIC 6.

                  Section 9.02 Prohibited Transactions and Activities.

                  Neither the Seller, the Depositor, the Servicer nor the
Trustee shall sell, dispose of, or substitute for any of the Mortgage Loans,
except in a disposition pursuant to (i) the foreclosure of a Mortgage Loan, (ii)
the bankruptcy of the Trust Fund, (iii) the termination of any REMIC created
hereunder pursuant to Article X of this Agreement, (iv) a substitution pursuant
to Article II of this Agreement or (v) a repurchase of Mortgage Loans pursuant
to Article II of this Agreement, nor acquire any assets for any REMIC, nor sell
or dispose of any investments in the Distribution Account for gain, nor accept
any contributions to either REMIC after the Closing Date, unless it has received
an Opinion of Counsel (at the expense of the party causing such sale,
disposition, or substitution) that such disposition, acquisition, substitution,
or acceptance will not (a) affect adversely the status of any REMIC created
hereunder as a REMIC or of the interests therein other than the Residual
Certificates as the regular interests therein, (b) affect the distribution of
interest or principal on the Certificates, (c) result in the encumbrance of the
assets transferred or assigned to the Trust Fund (except pursuant to the
provisions of this Agreement) or (d) cause any REMIC created hereunder to be
subject to a tax on prohibited transactions or prohibited contributions pursuant
to the REMIC Provisions.

                  Section 9.03 Indemnification with Respect to Certain Taxes and
Loss of REMIC Status.

                  In the event that any REMIC 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
Certificates 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 Trustee, the Depositor 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 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 now or hereafter
existing at law or in equity. 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

                                    - 145 -
<PAGE>

herein, and (3) for any special or consequential damages to Certificateholders
(in addition to payment of principal and interest on the Certificates).

                                    - 146 -
<PAGE>

                                   ARTICLE X

                                   TERMINATION

                  Section 10.01 Termination.

                  (a) The respective obligations and responsibilities of the
Seller, the Servicer, the Depositor, the Trustee and the Certificate Registrar
created hereby (other than the obligation of the Trustee to make certain
payments to Certificateholders after the final Distribution Date and the
obligation of the Servicer to send certain notices as hereinafter set forth)
shall terminate upon notice to the Trustee upon the earliest of (i) the
Distribution Date on which the Certificate Principal Balance of each Class of
Certificates has been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, and (iii) the optional
purchase by the Servicer or an Affiliate of the Servicer of the Mortgage Loans
as described below. Notwithstanding the foregoing, in no event shall the trust
created hereby continue beyond 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.

                  The Servicer or an Affiliate of the Servicer may, at its
option, terminate the Mortgage Loans in the Trust Fund and retire the Class A
Certificates and the Mezzanine Certificates on the next succeeding Distribution
Date upon which the current Pool Balance is less than 10% of the Pool Balance of
the Mortgage Loans as of the Cut-off Date by purchasing all of the outstanding
(i) Mortgage Loans in the Trust Fund at a price equal to the sum of the
outstanding Principal Balance of the Mortgage Loans and except to the extent
previously advanced by the Servicer, accrued and unpaid interest thereon at the
weighted average of the Mortgage Interest Rates through the end of the
Collection Period preceding the final Distribution Date plus unreimbursed
Servicing Advances, Advances and any unpaid Servicing Fees allocable to such
Mortgage Loans and (ii) REO Properties in the Trust Fund at a price equal to
their fair market value as determined in good faith by the Servicer (the
"Termination Price").

                  In connection with any such purchase pursuant to the preceding
paragraph, the Servicer shall deliver to the Trustee for deposit in the
Distribution Account all amounts then on deposit in the Collection Account (less
amounts permitted to be withdrawn by the Servicer pursuant to Section 3.07),
which deposit shall be deemed to have occurred immediately following such
purchase.

                  Any such purchase shall be accomplished by delivery to the
Trustee for deposit into the Distribution Account as part of Available Funds on
the Determination Date before such Distribution Date of the Termination Price.

                  (b) Notice of any termination, specifying the Distribution
Date (which shall be a date that would otherwise be a Distribution Date) upon
which the Certificateholders may surrender their Certificates to the Trustee for
payment of the final distribution and cancellation, shall be given promptly by
the Trustee upon the Trustee receiving notice of such date from the Servicer, by
letter to the Certificateholders mailed not earlier than the 15th day of the
month preceding the month of such final distribution and not later than the 15th
day of the month of

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<PAGE>

such final distribution specifying (1) the Distribution Date upon which final
distribution of the Certificates will be made upon presentation and surrender of
such Certificates at the office or agency of the Trustee therein designated, (2)
the amount of any such final distribution and (3) that the Record Date otherwise
applicable to such Distribution Date is not applicable, distributions being made
only upon presentation and surrender of the Certificates at the office or agency
of the Trustee therein specified.

                  (c) Upon presentation and surrender of the Certificates, the
Trustee shall cause to be distributed to the Holders of the Certificates on the
Distribution Date for such final distribution, in proportion to the Percentage
Interests of their respective Class and to the extent that funds are available
for such purpose, an amount equal to the amount required to be distributed to
such Holders in accordance with the provisions of Sections 4.01 and Section 4.02
for such Distribution Date.

                  (d) In the event that all Certificateholders shall not
surrender their Certificates for final payment and cancellation on or before
such final Distribution Date, the Trustee shall promptly following such date
cause all funds in the Distribution Account not distributed in final
distribution to Certificateholders to be withdrawn therefrom and credited to the
remaining Certificateholders by depositing such funds in a separate escrow
account for the benefit of such Certificateholders, and the Servicer (if the
Servicer has exercised its right to purchase the Mortgage Loans) or the Trustee
(in any other case) shall give a second written notice to the remaining
Certificateholders, to surrender their Certificates for cancellation and receive
the final distribution with respect thereto. If within nine months after the
second notice all the Certificates shall not have been surrendered for
cancellation, the Residual Certificateholders shall be entitled to all unclaimed
funds and other assets which remain subject hereto and the Trustee upon transfer
of such funds shall be discharged of any responsibility for such funds, and such
Certificateholders shall look to the Residual Certificateholders for payment.

                  Section 10.02 Additional Termination Requirements.

                  (a) In the event that the Servicer exercises its purchase
option as provided in Section 10.01, the Trust shall be terminated in accordance
with the following additional requirements, unless the Trustee shall have been
furnished with an Opinion of Counsel to the effect that the failure of the Trust
to comply with the requirements of this Section will not (i) result in the
imposition of taxes on "prohibited transactions" of the Trust as defined in
Section 860F of the Code or (ii) cause any REMIC constituting part of the Trust
Fund to fail to qualify as a REMIC at any time that any Certificates are
outstanding:

               (i) The Trustee shall designate a date within 90 days prior to
          the final Distribution Date as the date of adoption of plans of
          complete liquidation of each REMIC and shall specify such date in the
          final federal income tax return of each REMIC;

               (ii) After the date of adoption of such plans of complete
          liquidation and at or prior to the final Distribution Date, the
          Trustee shall sell all of the assets of the Trust to the Servicer for
          cash; and

                                    - 148 -
<PAGE>

               (iii) At the time of the making of the final payment on the
          Certificates, the Trustee shall distribute or credit, or cause to be
          distributed or credited in the following order of priority (A) (i) to
          the Holders of the Class A Certificates and (ii) to the Class M-1,
          Class M- 2, Class M-3, Class B-1, Class B-2, Class B-3 and Class B-4
          Certificates, the related Certificate Principal Balance, as
          applicable, plus one month's interest thereon at the applicable
          Pass-Through Rate, (B) to the Class N and Class X Certificates in
          respect of the Class X/N Interest, the amount of any remaining Monthly
          Excess Cash Flow Amounts not previously distributed thereon, (C) to
          the remaining REMIC Regular Interests the amounts allocable thereto
          pursuant to Section 4.08 and (D) to the Class R and Class R-X
          Certificateholders, all cash on hand in respect of the related REMIC
          or REMICs after such payment (other than cash retained to meet claims)
          and the Trust shall terminate at such time.

                  (b) By their acceptance of Certificates, the Holders thereof
hereby agree to appoint the Trustee as their attorney in fact to: (i) designate
such date of adoption of plans of complete liquidation and (ii) to take such
other action in connection therewith as may be reasonably required to carry out
such plans of complete liquidation all in accordance with the terms hereof.

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<PAGE>

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

                  Section 11.01 Amendment.

                  This Agreement may be amended from time to time by the Seller,
the Depositor, the Servicer and the Trustee; and without the consent of the
Certificateholders, (i) to cure any ambiguity, (ii) to correct or supplement any
provisions herein which may be defective or inconsistent with any other
provisions herein, (iii) to amend the provisions of Section 3.22, (iv) to make
any other provisions with respect to matters or questions arising under this
Agreement, which shall not be inconsistent with the provisions of this Agreement
or (v) to comply with any rules of the Securities and Exchange Commission
promulgated following the date hereof which apply to the Certificates; provided,
however, that any such action listed in clause (i) through (iv) above shall not
adversely affect in any respect the interests of any Certificateholder, as
evidenced by (i) notice in writing to the Depositor, the Servicer and the
Trustee from the Rating Agencies that such action will not result in the
reduction or withdrawal of the rating of any outstanding Class of Certificates
with respect to which it is a Rating Agency, or (ii) an Opinion of Counsel
delivered to the Servicer and the Trustee.

                  In addition, this Agreement may be amended from time to time
by Seller, the Depositor, the Servicer and the Trustee, with the consent of the
Majority Certificateholders 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 or waiver shall (x) reduce in any manner the
amount of, or delay the timing of, payments on the Certificates which are
required to be made on any Certificate without the consent of the Holder of such
Certificate, (y) adversely affect in any material respect the interests of the
Holders of any Class of Certificates (as evidenced by (i) notice in writing to
the Depositor, the Servicer and the Trustee from the Rating Agencies that such
action will not result in the reduction or withdrawal of the rating of any
outstanding Class of Certificates with respect to which it is a Rating Agency,
or (ii) an Opinion of Counsel delivered to the Servicer and the Trustee) in a
manner other than as described in clause (x) above, without the consent of the
Holders of Certificates of such Class evidencing at least a 66% Percentage
Interest in such Class, or (z) reduce the percentage of Voting Rights required
by clause (y) above without the consent of the Holders of all Certificates of
such Class then outstanding. Upon approval of an amendment, a copy of such
amendment shall be sent to the Rating Agencies. Prior to the execution of any
amendment to this Agreement, the Trustee shall be entitled to receive and rely
upon an Opinion of Counsel (at the expense of the Person seeking such amendment)
stating that the execution of such amendment is authorized or permitted by this
Agreement. The Trustee may, but shall not be obligated to, enter into any such
amendment which affects the Trustee's own rights, duties or immunities under
this Agreement.

                  Notwithstanding any provision of this Agreement to the
contrary, the Trustee shall not consent to any amendment to this Agreement
unless it shall have first received an Opinion of Counsel, delivered by (and at
the expense of) the Person seeking such Amendment, to the effect that such
amendment will not result in the imposition of a tax on any REMIC constituting
part of the Trust Fund pursuant to the REMIC Provisions or cause any REMIC

                                    - 150 -
<PAGE>

constituting part of the Trust to fail to qualify as a REMIC at any time that
any Certificates are outstanding and that the amendment is being made in
accordance with the terms hereof.

                  Promptly after the execution of any such amendment the Trustee
shall furnish, at the expense of the Person that requested the amendment if such
Person is the Seller or the Servicer (but in no event at the expense of the
Trustee), otherwise at the expense of the Trust, a copy of such amendment and
the Opinion of Counsel referred to in the immediately preceding paragraph to the
Servicer and each Rating Agency.

                  It shall not be necessary for the consent of
Certificateholders under this Section 11.01 to approve the particular form of
any proposed amendment; instead 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.

                  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 Servicer at the expense of the Trust, but only upon direction of
Certificateholders, 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
together constitute but one and the same instrument.

                  Section 11.03 Limitation on Rights of Certificateholders.

                  The death or incapacity of any Certificateholder shall not (i)
operate to terminate this Agreement or the Trust, (ii) 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 of the
Trust, or (iii) otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them.

                  Except as expressly provided for herein, no Certificateholder
shall have any right to vote or in any manner otherwise control the operation
and management of the Trust, 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 person 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

                                    - 151 -
<PAGE>

respect to this Agreement, unless such Holder previously shall have given to the
Trustee a written notice of default and of the continuance thereof, as herein
provided, and unless also the Holders of Certificates entitled to at least 25%
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 15 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,
which priority or preference is not otherwise provided for herein, 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 11.03 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; Jurisdiction.

                  This Agreement shall be construed in accordance with the laws
of the State of New York, and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws (without
regard to the conflicts of laws provisions thereof). With respect to any claim
arising out of this Agreement, each party irrevocably submits to the exclusive
jurisdiction of the courts of the State of New York and the United States
District Court located in the Borough of Manhattan in The City of New York, and
each party irrevocably waives any objection which it may have at any time to the
laying of venue of any suit, action or proceeding arising out of or relating
hereto brought in any such courts, irrevocably waives any claim that any such
suit, action or proceeding brought in any such court has been brought in any
inconvenient forum and further irrevocably waives the right to object, with
respect to such claim, suit, action or proceeding brought in any such court,
that such court does not have jurisdiction over such party, provided that
service of process has been made by any lawful means.

                  Section 11.05 Notices.

                  All directions, demands and notices hereunder shall be in
writing and shall be deemed to have been duly given if personally delivered at
or mailed by first class mail, postage prepaid, or by express delivery service,
to (a) in the case of the Seller, Credit-Based Asset Servicing and
Securitization LLC, 335 Madison Avenue, 19th Floor, New York, New York,
Attention: Director - Mortgage Finance (telecopy number (212) 850-7760), or such
other address or telecopy number as may hereafter be furnished to the Depositor
and the Trustee in writing by the Seller, (b) in the case of the Trustee, U.S.
Bank National Association, 60 Livingston Avenue, EP-MN-WS3D, St. Paul, Minnesota
55107-2292, Attn: Structured Finance--Citigroup C-BASS 2004-CB7, or such other
address as may hereafter be furnished to the Depositor, the Seller and the
Servicer in writing by the Trustee, (c) in the case of the Depositor, Citigroup
Mortgage Loan Trust Inc., 390 Greenwich Street, 4th Floor, New York, New York
10013 Attention: Mortgage Finance, or such other address as may be furnished to
the

                                    - 152 -
<PAGE>

Seller, the Servicer and the Trustee in writing by the Depositor, and (d) in the
case of the Servicer, Litton Loan Servicing LP, 4828 Loop Central Drive,
Houston, Texas 77081, Attention: Janice McClure, or such other address as may be
furnished to the Seller, the Depositor and the Trustee in writing by the
Servicer. 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. Notice of any Servicer Event of
Termination shall be given by telecopy and by certified mail. Any notice so
mailed within the time prescribed in this Agreement shall be conclusively
presumed to have duly been given when mailed, whether or not the
Certificateholder receives such notice. A copy of any notice required to be
telecopied hereunder shall also be mailed to the appropriate party in the manner
set forth above.

                  Section 11.06 Severability of Provisions.

                  If any one or more of the covenants, agreements, provisions or
terms of this Agreement shall for any reason whatsoever be 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 Article and Section References.

                  All article and section references used in this Agreement,
unless otherwise provided, are to articles and sections in this Agreement.

                  Section 11.08 Notice to the Rating Agencies.

                  (a) Each of the Trustee and the Servicer shall be obligated to
use its best reasonable efforts promptly to provide notice to the Rating
Agencies with respect to each of the following of which a Responsible Officer of
the Trustee or the Servicer, as the case may be, has actual knowledge:

               (i) any material change or amendment to this Agreement;

               (ii) the occurrence of any Servicer Event of Termination that has
          not been cured or waived;

               (iii) the resignation or termination of the Servicer or the
          Trustee;

               (iv) the final payment to Holders of the Certificates of any
          Class;

               (v) any change in the location of any Account; and

               (vi) if the Trustee is acting as successor Servicer pursuant to
          Section 7.02 hereof, any event that would result in the inability of
          the Trustee to make Advances.

               (vii) In addition, the Servicer shall promptly furnish to each
          Rating Agency copies of the following:

                                    - 153 -
<PAGE>

                  (A) each annual statement as to compliance described in
Section 3.19 hereof;

                  (B) each annual independent public accountants' servicing
report described in Section 3.20 hereof; and

                  (C) each notice delivered pursuant to Section 7.01(a) hereof
which relates to the fact that the Servicer has not made an Advance.

                  Any such notice pursuant to this Section 11.08 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
Moody's Investors Service, Inc., 99 Church Street, New York, New York 10007,
Attention: Managing Director, Residential Mortgage-Backed Securities; Fitch
Ratings, One State Street Plaza, New York, New York 10004, Attention: Managing
Director, Residential Mortgage-Backed Securities; Standard & Poor's, a division
of The McGraw-Hill Companies, Inc., 55 Water Street, New York, New York 10041,
Attention: Mortgage Surveillance Group; and Dominion Bond Rating Service, Inc.,
55 Broadway, New York, New York 10006, Attention: Michael Nelson.

                  Section 11.09 Further Assurances.

                  Notwithstanding any other provision of this Agreement, neither
the Regular Certificateholders nor the Trustee shall have any obligation to
consent to any amendment or modification of this Agreement unless they have been
provided reasonable security or indemnity against their out-of-pocket expenses
(including reasonable attorneys' fees) to be incurred in connection therewith.

                  Section 11.10 Benefits of Agreement.

                  Nothing in this Agreement or in the Certificates, expressed or
implied, shall give to any Person, other than the Certificateholders and the
parties hereto and their successors hereunder, any benefit or any legal or
equitable right, remedy or claim under this Agreement.

                  Section 11.11 Acts of Certificateholders.

                  (a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Agreement to be given or taken
by the Certificateholders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Certificateholders in
person or by agent duly appointed in writing; and such action shall become
effective when such instrument or instruments are delivered to the Trustee, the
Seller and the Servicer. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the "act" of
the Certificateholders signing such instrument or instruments. Proof of
execution of any such instrument or of a writing appointing any such agent shall
be sufficient for any purpose of this Agreement and conclusive in favor of the
Trustee and the Trust, if made in the manner provided in this Section 11.11.

                  (b) The fact and date of the execution by any Person of any
such instrument or writing may be proved by the affidavit of a witness of such
execution or by the certificate of a

                                    - 154 -
<PAGE>

notary public or other officer authorized by law to take acknowledgments of
deeds, certifying that the individual signing such instrument or writing
acknowledged to him the execution thereof. Whenever such execution is by a
signer acting in a capacity other than his or her individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his
authority.

                  (c) Any request, demand, authorization, direction, notice,
consent, waiver or other action by any Certificateholder shall bind every future
Holder of such Certificate and the Holder of every Certificate issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof, in
respect of anything done, omitted or suffered to be done by the Trustee or the
Trust in reliance thereon, whether or not notation of such action is made upon
such Certificate.

                                    - 155 -
<PAGE>

                  IN WITNESS WHEREOF, the Seller, the Depositor, the 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.

                          CITIGROUP MORTGAGE LOAN TRUST INC., as Depositor

                          By:  /s/ Matthew R. Bollo
                              -------------------------------------------------
                          Name:    Matthew R. Bollo
                          Title:   Asst. Vice President

                          CREDIT-BASED ASSET SERVICING AND SECURITIZATION LLC,
                          as Seller

                          By: /s/ Stephanie Sparvero
                              -------------------------------------------------
                          Name:   Stephanie Sparvero
                          Title:  Vice President

                          LITTON LOAN SERVICING LP, as Servicer

                          By: /s/ Janice McClure
                              -------------------------------------------------
                          Name:   Janice McClure
                          Title:  Vice President

                          U.S. BANK NATIONAL
                          ASSOCIATION, as Trustee

                          By:  /s/ S. Christopherson
                              -------------------------------------------------
                          Name:    S. Christopherson
                          Title:   Vice President

<PAGE>

STATE OF NEW YORK          )
                           ) ss.:
COUNTY OF NEW YORK         )

                  On the 29th day of October, 2004 before me, a notary public in
and for said State, personally appeared Matthew R. Bollo, known to me to be an
Asst. Vice President of Citigroup Mortgage Loan Trust Inc., a Delaware
corporation 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/ Mirna Cardona
                              -------------------------------------------------
                                  Mirna Cardona
                                  Notary Public

                                  Commission Expires Sept. 13, 2008

<PAGE>

STATE OF NEW YORK          )
                           ) ss.:
COUNTY OF NEW YORK         )

                  On the 29th day of October 2004 before me, a notary public in
and for said State, personally appeared Stephanie Sparvero known to me to be a
Vice President of Credit-Based Asset Servicing and Securitization LLC, a limited
liability company that executed the within instrument, and also known to me to
be the person who executed it on behalf of said limited liability company, and
acknowledged to me that such limited liability company 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/ Geoffrey E. Hader
                              -------------------------------------------------
                                  Geoffrey E. Hader
                                  Notary Public

                                  Commission Expires Jan. 31, 2006

<PAGE>

STATE OF              )
STATE OF MINNESOTA    ) ss.:
COUNTY OF RAMSEY      )

                  On the 29th day of October 2004 before me, a notary public in
and for said State, personally appeared S. Christopherson, known to me to be a
Vice President of U.S. Bank 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.

                              /s/ Susan Burdick
                              -------------------------------------------------
                                  Susan Burdick
                                  Notary Public

                                  Commission Expires Jan. 31, 2006
<PAGE>

STATE OF TEXAS      )
                    ) ss.:
COUNTY OF HARRIS    )

                  On the 29th day of October 2004 before me, a notary public in
and for said State, personally appeared Janice McClure, known to me to be a Vice
President of Litton Loan Servicing LP, a Delaware limited partnership, that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said limited partnership, and acknowledged to me that
such limited partnership 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/ A. Millea
                              -------------------------------------------------
                                  A. Mille
                                  Notary Public- State of Texas

                                  Commission Expires Apr. 28, 2006

<PAGE>

                                   EXHIBIT A-1

                         FORM OF CLASS AV-1 CERTIFICATE

          UNLESS THIS  CERTIFICATE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO
          THE TRUSTEE OR ITS AGENT FOR  REGISTRATION OF TRANSFER,  EXCHANGE,  OR
          PAYMENT,  AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
          &  CO.  OR  IN  SUCH  OTHER  NAME  AS IS  REQUESTED  BY AN  AUTHORIZED
          REPRESENTATIVE  OF DTC (AND ANY  PAYMENT  IS MADE TO CEDE & CO.  OR TO
          SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE  OF
          DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
          BY OR TO ANY  PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
          HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  REPRESENTS
          BENEFICIAL  OWNERSHIP  OF  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") AND CERTAIN OTHER PROPERTY.

                                     A-1-1

<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2004-CB7, CLASS AV-1

evidencing  a  beneficial  ownership  interest  in a  portion  of a  Trust  Fund
consisting  primarily  of a pool  of  fixed-rate  and  adjustable-rate  one-  to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

Series 2004-CB7, Class AV-1             Original Class Certificate Principal
                                        Balance of the Class AV-1 Certificates
                                        as of the Closing
Pass-Through Rate: Variable             Date: $137,409,000.00

Date of Pooling and Servicing Agreement Initial Certificate Principal Balance:
and Cut-off Date: October 1, 2004       $137,409,000.00

First Distribution Date:                Servicer:  Litton Loan Servicing LP
November 26, 2004

No. 1                                   Trustee: U.S. Bank National Association

CUSIP: 17307G LE 6                      Closing Date:  October 29, 2004

          DISTRIBUTIONS  IN REDUCTION OF THE  CERTIFICATE  PRINCIPAL  BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING  CERTIFICATE  PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS  CERTIFICATE  DOES NOT  REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP  MORTGAGE LOAN TRUST INC., THE SERVICER,  THE TRUSTEE OR ANY
          OF THEIR AFFILIATES.  THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     A-1-2

<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original  Class  Certificate  Principal  Balance of the Class
AV-1  Certificates) in that certain  beneficial  ownership interest evidenced by
all the Class AV-1  Certificates in the Trust Fund created pursuant to a Pooling
and  Servicing  Agreement,  dated as specified  above (the  "Agreement"),  among
Citigroup  Mortgage Loan Trust Inc.  (hereinafter  called the "Depositor," which
term  includes any successor  entity under the  Agreement),  the  Servicer,  the
Seller and 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,  distributions 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 (a "Distribution  Date"),  commencing on the
first  Distribution  Date  specified  above,  to the  Person in whose  name this
Certificate  is  registered  on the  Business  Day  immediately  preceding  such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount  equal to the product of the  Percentage  Interest  evidenced  by this
Certificate  and the amount  required to be  distributed to the Holders of Class
AV-1 Certificates on such Distribution Date pursuant to the Agreement  provided,
however,  that if any Class AV-1 Certificate  becomes a Definitive  Certificate,
the Record Date for such  Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All  distributions  to  the  Holder  of  this  Certificate  under  the
Agreement  will be made or caused to be made by or on behalf of the  Trustee  by
wire  transfer  in  immediately  available  funds to the  account  of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing  at least five  Business  Days prior to the Record  Date  immediately
prior to such  Distribution  Date  and is the  registered  owner  of Class  AV-1
Certificates the aggregate Initial Certificate  Principal Balance of which is in
excess of  $5,000,000,  or by check mailed by first class mail to the address of
the  Person  entitled  thereto,  as such name and  address  shall  appear on the
Certificate  Register,  provided  that the  Certificate  Registrar  may deduct a
reasonable   wire  transfer  fee  from  any  payment  made  by  wire   transfer.
Notwithstanding  the above,  the final  distribution on this Certificate will be
made after due notice by the Trustee of the  pendency of such  distribution  and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class AV-1  Pass-Through  Rate on each Distribution Date will be a
rate per annum  equal to the  lesser of (i) the sum of one month  LIBOR plus the
Class  AV-1  Certificate  Margin  and  (ii)  the  related  Rate Cap for the such
Distribution  Date.  Interest will accrue on the Class AV-1 Certificates  during
each Interest Accrual Period at the Class AV-1 Pass-Through Rate.

                                     A-1-3

<PAGE>

          This  Certificate is one of a duly  authorized  issue of  Certificates
designated  as C-BASS  Mortgage  Loan  Asset-Backed  Certificates  of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class AV-1 Certificates.

          The Class AV-1 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.  As  provided  in the
Agreement,  withdrawals from the Collection Account and the Distribution Account
may be  made  from  time  to time  for  purposes  other  than  distributions  to
Certificateholders,  such purposes including  reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits,  with certain exceptions therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Depositor,  the Servicer,  the Trustee and the rights of the  Certificateholders
under the Agreement at any time by the  Depositor,  the Servicer and the Trustee
with the consent of the Holders of  Certificates  entitled to the Voting  Rights
identified in the agreement.  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 this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances,  without the consent of the Holders of any of the
Certificates.

          As  provided  in the  Agreement  and  subject to  certain  limitations
therein  set forth,  the  transfer of this  Certificate  is  registrable  in the
Certificate  Register upon surrender of this  Certificate  for  registration  of
transfer at the offices or agencies  appointed by the Trustee as provided in the
Agreement,  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  Certificate  Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing,  and thereupon one or more new Certificates
of the same Class in  authorized  denominations  evidencing  the same  aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The  Certificates  are issuable in fully  registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in  the  Agreement.  As  provided  in  the  Agreement  and  subject  to  certain
limitations   therein  set  forth,   Certificates   are   exchangeable  for  new
Certificates of the same Class in authorized  denominations  evidencing the same
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 of Certificates,  but the Certificate  Registrar may require payment
of a sum  sufficient to cover any tax or other  governmental  charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the  Depositor,  the Servicer,  the Trustee or the  Certificate
Registrar may treat the Person in whose name this  Certificate  is registered as
the owner hereof for all purposes, and none of the

                                     A-1-4

<PAGE>

Depositor,  the Servicer,  the Trustee,  the Certificate  Registrar nor any such
agent shall be affected by notice to the contrary.

          The  obligations  created by the  Agreement and the Trust Fund created
thereby 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  pursuant to
the  Agreement  following  the  earlier  of  (i)  the  final  payment  or  other
liquidation  (or any advance with  respect  thereto) of the last  Mortgage  Loan
remaining in the Trust Fund,  and (ii) the purchase by the party  designated  in
the Agreement at a price  determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits,  but does not require, the party designated in the
Agreement to purchase  from the Trust Fund all  Mortgage  Loans and all property
acquired in respect of any Mortgage  Loan at a price  determined  as provided in
the  Agreement.  The exercise of such right will effect early  retirement of the
Certificates;  however,  such right to  purchase  is  subject  to the  aggregate
Principal  Balance of the  Mortgage  Loans at the time of purchase  being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The  recitals  contained  herein shall be taken as  statements  of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of  authentication  hereon has been executed by
the Certificate  Registrar,  by manual signature,  this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-1-5

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                              U.S. BANK NATIONAL ASSOCIATION,
                              as Trustee

                              By:________________________________
                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                              U.S. BANK NATIONAL ASSOCIATION,
                              as Certificate Registrar

                              By:________________________________
                                       Authorized Signatory

Date of authentication: October  ___, 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations,  when used in the inscription on the face
of this  instrument,  shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  - as tenants in common       UNIF GIFT MIN ACT -  Custodian
                                                           ---------
                                                           (Cust) (Minor)
TEN ENT  - as tenants by the entireties                    under Uniform Gifts
                                                           to Minors Act

JT TEN   - as joint tenants with right of                 ________________
           of survivorship  and  not as                       (State)
           tenants in common

          Additional  abbreviations  may also be used  though  not in the  above
list.

                                   ASSIGNMENT

          FOR VALUE  RECEIVED,  the undersigned  hereby  sell(s),  assign(s) and
transfer(s) unto
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification  Number  of  assignee)
a  Percentage  Interest  equal  to  ____%
evidenced by the within  asset-backed  Certificate and hereby  authorize(s)  the
registration  of  transfer  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 Percentage  Interest 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-1-7

<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
_______________,        of,       if       mailed       by       check,       to
______________________________________________________________________________
This information is provided by ___________________________,  the assignee named
above, or ______________________________________, as its agent.

                                     A-1-8

<PAGE>

                                   EXHIBIT A-2

                         FORM OF CLASS AV-2A CERTIFICATE

UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN  AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION  ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER,  EXCHANGE,  OR PAYMENT,  AND ANY CERTIFICATE
ISSUED  IS  REGISTERED  IN THE NAME OF CEDE & CO.  OR IN SUCH  OTHER  NAME AS IS
REQUESTED  BY AN  AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT IS MADE TO
CEDE  &  CO.  OR  TO  SUCH  OTHER  ENTITY  AS  IS  REQUESTED  BY  AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

FOR U.S.  FEDERAL INCOME TAX PURPOSES,  THIS CERTIFICATE  REPRESENTS  BENEFICIAL
OWNERSHIP  OF  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") AND CERTAIN  OTHER
PROPERTY.

                                     A-2-1

<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                          SERIES 2004-CB7, CLASS AV-2A

evidencing  a  beneficial  ownership  interest  in a  portion  of a  Trust  Fund
consisting  primarily  of a pool  of  fixed-rate  and  adjustable-rate  one-  to
four-family  first and second lien  mortgage  loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

Series 2004-CB7, Class AV-2A            Original Class Certificate Principal
                                        Balance of the Class AV-2A Certificates
                                        as of the Closing
Pass-Through Rate: Variable             Date: $82,422,000.00

Date of Pooling and Servicing Agreement Initial Certificate Principal Balance:
and Cut-off Date: October 1, 2004       $82,422,000.00

First Distribution Date:                Servicer:  Litton Loan Servicing LP
November 26, 2004

No. 1                                   Trustee: U.S. Bank National Association

CUSIP: 17307G LF 6                      Closing Date:  October 29, 2004

          DISTRIBUTIONS  IN REDUCTION OF THE  CERTIFICATE  PRINCIPAL  BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING  CERTIFICATE  PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS  CERTIFICATE  DOES NOT  REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP  MORTGAGE LOAN TRUST INC., THE SERVICER,  THE TRUSTEE OR ANY
          OF THEIR AFFILIATES.  THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     A-2-2

<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original  Class  Certificate  Principal  Balance of the Class
AV-2A  Certificates) in that certain beneficial  ownership interest evidenced by
all the Class AV-2A Certificates in the Trust Fund created pursuant to a Pooling
and  Servicing  Agreement,  dated as specified  above (the  "Agreement"),  among
Citigroup  Mortgage Loan Trust Inc.  (hereinafter  called the "Depositor," which
term  includes any successor  entity under the  Agreement),  the  Servicer,  the
Seller and 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,  distributions 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 (a "Distribution  Date"),  commencing on the
first  Distribution  Date  specified  above,  to the  Person in whose  name this
Certificate  is  registered  on the  Business  Day  immediately  preceding  such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount  equal to the product of the  Percentage  Interest  evidenced  by this
Certificate  and the amount  required to be  distributed to the Holders of Class
AV-2A Certificates on such Distribution Date pursuant to the Agreement provided,
however,  that if any Class AV-2A Certificate becomes a Definitive  Certificate,
the Record Date for such  Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All  distributions  to  the  Holder  of  this  Certificate  under  the
Agreement  will be made or caused to be made by or on behalf of the  Trustee  by
wire  transfer  in  immediately  available  funds to the  account  of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing  at least five  Business  Days prior to the Record  Date  immediately
prior to such  Distribution  Date  and is the  registered  owner of Class  AV-2A
Certificates the aggregate Initial Certificate  Principal Balance of which is in
excess of  $5,000,000,  or by check mailed by first class mail to the address of
the  Person  entitled  thereto,  as such name and  address  shall  appear on the
Certificate  Register,  provided  that the  Certificate  Registrar  may deduct a
reasonable   wire  transfer  fee  from  any  payment  made  by  wire   transfer.
Notwithstanding  the above,  the final  distribution on this Certificate will be
made after due notice by the Trustee of the  pendency of such  distribution  and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class AV-2A  Pass-Through Rate on each Distribution Date will be a
rate per annum  equal to the  lesser of (i) the sum of one month  LIBOR plus the
Class  AV-2A  Certificate  Margin  and  (ii) the  related  Rate Cap for the such
Distribution Date.  Interest will accrue on the Class AV-2A Certificates  during
each Interest Accrual Period at the Class AV-2A Pass-Through Rate.

          This  Certificate is one of a duly  authorized  issue of  Certificates
designated  as C-BASS  Mortgage  Loan  Asset-Backed  Certificates  of the Series
specified on the face hereof

                                     A-2-3

<PAGE>

(herein called the "Certificates") and representing a Percentage Interest in the
Class AV-2A Certificates.

          The Class  AV-2A  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.  As  provided  in the
Agreement,  withdrawals from the Collection Account and the Distribution Account
may be  made  from  time  to time  for  purposes  other  than  distributions  to
Certificateholders,  such purposes including  reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits,  with certain exceptions therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Depositor,  the Servicer,  the Trustee and the rights of the  Certificateholders
under the Agreement at any time by the  Depositor,  the Servicer and the Trustee
with the consent of the Holders of  Certificates  entitled to the Voting  Rights
identified in the agreement.  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 this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances,  without the consent of the Holders of any of the
Certificates.

          As  provided  in the  Agreement  and  subject to  certain  limitations
therein  set forth,  the  transfer of this  Certificate  is  registrable  in the
Certificate  Register upon surrender of this  Certificate  for  registration  of
transfer at the offices or agencies  appointed by the Trustee as provided in the
Agreement,  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  Certificate  Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing,  and thereupon one or more new Certificates
of the same Class in  authorized  denominations  evidencing  the same  aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The  Certificates  are issuable in fully  registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in  the  Agreement.  As  provided  in  the  Agreement  and  subject  to  certain
limitations   therein  set  forth,   Certificates   are   exchangeable  for  new
Certificates of the same Class in authorized  denominations  evidencing the same
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 of Certificates,  but the Certificate  Registrar may require payment
of a sum  sufficient to cover any tax or other  governmental  charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the  Depositor,  the Servicer,  the Trustee or the  Certificate
Registrar may treat the Person in whose name this  Certificate  is registered as
the owner hereof for all purposes, and none of the Depositor,  the Servicer, the
Trustee,  the  Certificate  Registrar  nor any such agent  shall be  affected by
notice to the contrary.

                                     A-2-4

<PAGE>

          The  obligations  created by the  Agreement and the Trust Fund created
thereby 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  pursuant to
the  Agreement  following  the  earlier  of  (i)  the  final  payment  or  other
liquidation  (or any advance with  respect  thereto) of the last  Mortgage  Loan
remaining in the Trust Fund,  and (ii) the purchase by the party  designated  in
the Agreement at a price  determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits,  but does not require, the party designated in the
Agreement to purchase  from the Trust Fund all  Mortgage  Loans and all property
acquired in respect of any Mortgage  Loan at a price  determined  as provided in
the  Agreement.  The exercise of such right will effect early  retirement of the
Certificates;  however,  such right to  purchase  is  subject  to the  aggregate
Principal  Balance of the  Mortgage  Loans at the time of purchase  being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     A-2-5

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                              U.S. BANK NATIONAL ASSOCIATION,
                              as Trustee

                              By:________________________________
                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                              U.S. BANK NATIONAL ASSOCIATION,
                              as Certificate Registrar

                              By:________________________________
                                       Authorized Signatory

Date of authentication: October  ___, 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations,  when used in the inscription on the face
of this  instrument,  shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  - as tenants in common       UNIF GIFT MIN ACT -  Custodian
                                                           ---------
                                                           (Cust) (Minor)
TEN ENT  - as tenants by the entireties                    under Uniform Gifts
                                                           to Minors Act

JT TEN   - as joint tenants with right of                 ________________
           of survivorship  and  not as                       (State)
           tenants in common

          Additional  abbreviations  may also be used  though  not in the  above
list.

                                   ASSIGNMENT

          FOR VALUE  RECEIVED,  the undersigned  hereby  sell(s),  assign(s) and
transfer(s) unto
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification  Number  of  assignee)
a  Percentage  Interest  equal  to  ____%
evidenced by the within  asset-backed  Certificate and hereby  authorize(s)  the
registration  of  transfer  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 Percentage  Interest 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-2-7

<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-2-8

<PAGE>

                                   EXHIBIT A-3

                         FORM OF CLASS AV-2B CERTIFICATE

UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN  AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION  ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER,  EXCHANGE,  OR PAYMENT,  AND ANY CERTIFICATE
ISSUED  IS  REGISTERED  IN THE NAME OF CEDE & CO.  OR IN SUCH  OTHER  NAME AS IS
REQUESTED  BY AN  AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT IS MADE TO
CEDE  &  CO.  OR  TO  SUCH  OTHER  ENTITY  AS  IS  REQUESTED  BY  AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

FOR U.S.  FEDERAL INCOME TAX PURPOSES,  THIS CERTIFICATE  REPRESENTS  BENEFICIAL
OWNERSHIP  OF  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") AND CERTAIN  OTHER
PROPERTY.

                                     A-3-1

<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                          SERIES 2004-CB7, CLASS AV-2B

evidencing  a  beneficial  ownership  interest  in a  portion  of a  Trust  Fund
consisting  primarily  of a pool  of  fixed-rate  and  adjustable-rate  one-  to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

Series 2004-CB7, Class AV-2B            Original Class Certificate Principal
                                        Balance of the Class AV-2B Certificates
                                        as of the Closing
Pass-Through Rate: Variable             Date: $28607,000.00

Date of Pooling and Servicing Agreement Initial Certificate Principal Balance:
and Cut-off Date: October 1, 2004       $28,607,000.00

First Distribution Date:                Servicer:  Litton Loan Servicing LP
November 26, 2004

No. 1                                   Trustee: U.S. Bank National Association

CUSIP: 17307G LG 1                      Closing Date:  October 29, 2004

          DISTRIBUTIONS  IN REDUCTION OF THE  CERTIFICATE  PRINCIPAL  BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING  CERTIFICATE  PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS  CERTIFICATE  DOES NOT  REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP  MORTGAGE LOAN TRUST INC., THE SERVICER,  THE TRUSTEE OR ANY
          OF THEIR AFFILIATES.  THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     A-3-2

<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class
AV-2B Certificates) in that certain beneficial ownership interest evidenced by
all the Class AV-2B Certificates in the Trust Fund created pursuant to a Pooling
and Servicing Agreement, dated as specified above (the "Agreement"), among
Citigroup Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Servicer, the
Seller and 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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
AV-2B Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class AV-2B Certificate becomes a Definitive Certificate,
the Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class AV-2B
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class AV-2B Pass-Through Rate on each Distribution Date will be a
rate per annum equal to the lesser of (i) the sum of one month LIBOR plus the
Class AV-2B Certificate Margin and (ii) the related Rate Cap for the such
Distribution Date. Interest will accrue on the Class AV-2B Certificates during
each Interest Accrual Period at the Class AV-2B Pass-Through Rate.

         This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof

                                     A-3-3
<PAGE>

(herein called the "Certificates") and representing a Percentage Interest in the
Class AV-2B Certificates.

          The Class AV-2B 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the agreement. 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 this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
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 of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Servicer, the
Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

                                     A-3-4
<PAGE>

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-3-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                      Authorized Officer

                         CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Certificate Registrar

                                            By:________________________________
                                                    Authorized Signatory

Date of authentication: October  __, 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust) (Minor)
TEN ENT  -as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN   -as joint tenants with right                        ________________
          of survivorship and not as                             (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto ______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and
Taxpayer Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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-3-7
<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-3-8
<PAGE>

                                   EXHIBIT A-4

                         FORM OF CLASS AV-2C CERTIFICATE

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF 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") AND CERTAIN OTHER
PROPERTY.

                                     A-4-1
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                          SERIES 2004-CB7, CLASS AV-2C

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

<TABLE>
<S>                                            <C>
Series 2004-CB7, Class AV-2C                    Original Class Certificate Principal Balance of
                                                the Class AV-2C Certificates as of the Closing
Pass-Through Rate:  Variable                    Date: $26,379,000.00

Date of Pooling  and  Servicing  Agreement      Initial Certificate Principal Balance:
and  Cut-off Date: October 1, 2004              $26,379,000.00

First Distribution Date: November 26, 2004      Servicer:  Litton Loan Servicing LP

No. 1                                           Trustee: U.S. Bank National Association

CUSIP: 17307G LH 9                              Closing Date: October 29, 2004
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     A-4-2
<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class
AV-2C Certificates) in that certain beneficial ownership interest evidenced by
all the Class AV-2C Certificates in the Trust Fund created pursuant to a Pooling
and Servicing Agreement, dated as specified above (the "Agreement"), among
Citigroup Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Servicer, the
Seller and 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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
AV-2C Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class AV-2C Certificate becomes a Definitive Certificate,
the Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class AV-2C
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class AV-2C Pass-Through Rate on each Distribution Date will be a
rate per annum equal to the lesser of (i) the sum of one month LIBOR plus the
Class AV-2C Certificate Margin and (ii) the related Rate Cap for the such
Distribution Date. Interest will accrue on the Class AV-2C Certificates during
each Interest Accrual Period at the Class AV-2C Pass-Through Rate.

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof

                                     A-4-3
<PAGE>

(herein called the "Certificates") and representing a Percentage Interest in the
Class AV-2C Certificates.

          The Class AV-2C 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the agreement. 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 this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
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 of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Servicer, the
Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

                                     A-4-4
<PAGE>

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-4-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                    Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Certificate Registrar

                                            By:________________________________
                                                    Authorized Signatory

Date of authentication: October  __, 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust) (Minor)
TEN ENT  -as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN   -as joint tenants with right                        ________________
          of survivorship and not as                             (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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-4-7
<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-4-8
<PAGE>

                                   EXHIBIT A-5

                         FORM OF CLASS AF-1 CERTIFICATE

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
          THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
          PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
          & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
          REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
          SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
          DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
          BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
          HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS
          BENEFICIAL OWNERSHIP OF 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") AND CERTAIN OTHER PROPERTY.

                                     A-5-1
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2004-CB7, CLASS AF-1

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by CITIGROUP
MORTGAGE LOAN TRUST INC.

<TABLE>
<S>                                            <C>
Series 2004-CB7, Class AF-1                     Original Class Certificate Principal Balance of
                                                the Class AF-1 Certificates as of the Closing
Pass-Through Rate:  Variable                    Date: $ 54,510,000.00

Date of Pooling  and  Servicing  Agreement      Initial Certificate Principal Balance:
and  Cut-off Date: October 1, 2004              $ 54,510,000.00

First Distribution Date: November 26, 2004      Servicer:  Litton Loan Servicing LP

No. 1                                           Trustee: U.S. Bank National Association

CUSIP: 17307G LJ 5                              Closing Date: October 29, 2004
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     A-5-2
<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class
AF-1 Certificates) in that certain beneficial ownership interest evidenced by
all the Class AF-1 Certificates in the Trust Fund created pursuant to a Pooling
and Servicing Agreement, dated as specified above (the "Agreement"), among
Citigroup Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Servicer, the
Seller and 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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
AF-1 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class AF-1 Certificate becomes a Definitive Certificate,
the Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class AF-1
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class AF-1 Pass-Through Rate on each Distribution Date will be a
fixed rate per annum equal to 3.128%, subject to a rate cap and subject to
increase by 0.50% for each interest accrual period following the distribution
date on which the aggregate principal balance of the mortgage loans remaining in
the trust is reduced to less than 10% of the aggregate principal balance of the
mortgage loans as of the cut-off date. Interest will accrue on the Class AF-1
Certificates during each Interest Accrual Period at the Class AF-1 Pass-Through
Rate.

                                     A-5-3
<PAGE>

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class AF-1 Certificates.

          The Class AF-1 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the agreement. 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 this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
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 of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the

                                     A-5-4
<PAGE>

Depositor, the Servicer, the Trustee, the Certificate Registrar nor any such
agent shall be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-5-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Certificate Registrar

                                            By:________________________________
                                                    Authorized Signatory

Date of authentication: October  __, 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common          UNIF GIFT MIN ACT - Custodian
                                                            (Cust) (Minor)
TEN ENT  -as tenants by the entireties                      under Uniform Gifts
                                                            to Minors Act
JT TEN   -as joint tenants with right                       ________________
          of survivorship and not as                            (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s)
unto___________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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-5-7
<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-5-8
<PAGE>

                                   EXHIBIT A-6

                         FORM OF CLASS AF-2 CERTIFICATE

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
          THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
          PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
          & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
          REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
          SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
          DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
          BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
          HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS
          BENEFICIAL OWNERSHIP OF 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") AND CERTAIN OTHER PROPERTY.

                                     A-6-1
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2004-CB7, CLASS AF-2

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by CITIGROUP
MORTGAGE LOAN TRUST INC.

<TABLE>
<S>                                            <C>
Series 2004-CB7, Class AF-2                     Original Class Certificate Principal Balance of
                                                the Class AF-2 Certificates as of the Closing
Pass-Through Rate:  Fixed                       Date: $ 25,657,000.00

Date of Pooling  and  Servicing  Agreement      Initial Certificate Principal Balance:
and Cut-off Date: October 1, 2004               $ 25,657,000.00

First Distribution Date: November 26, 2004      Servicer:  Litton Loan Servicing LP

No. 1                                           Trustee: U.S. Bank National Association

CUSIP: 17307G LK 2                              Closing Date: October 29, 2004
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     A-6-2
<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class
AF-2 Certificates) in that certain beneficial ownership interest evidenced by
all the Class AF-2 Certificates in the Trust Fund created pursuant to a Pooling
and Servicing Agreement, dated as specified above (the "Agreement"), among
Citigroup Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Servicer, the
Seller and 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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
AF-2 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class AF-2 Certificate becomes a Definitive Certificate,
the Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class AF-2
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class AF-2 Pass-Through Rate on each Distribution Date will be a
fixed rate per annum equal to 3.887%, subject to a rate cap and subject to
increase by 0.50% for each interest accrual period following the distribution
date on which the aggregate principal balance of the mortgage loans remaining in
the trust is reduced to less than 10% of the aggregate principal balance of the
mortgage loans as of the cut-off date. Interest will accrue on the Class AF-2
Certificates during each Interest Accrual Period at the Class AF-2 Pass-Through
Rate.

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof

                                     A-6-3
<PAGE>

(herein called the "Certificates") and representing a Percentage Interest in the
Class AF-2 Certificates.

          The Class AF-2 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the agreement. 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 this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
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 of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Servicer, the
Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

                                     A-6-4
<PAGE>

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-6-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Certificate Registrar

                                            By:________________________________
                                                     Authorized Signatory

Date of authentication: October  __, 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust)(Minor)
TEN ENT  -as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN   -as joint tenants with right                        ________________
          of survivorship and not as                             (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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-6-7
<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-6-8
<PAGE>

                                   EXHIBIT A-7

                         FORM OF CLASS AF-3 CERTIFICATE

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
          THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
          PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
          & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
          REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
          SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
          DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
          BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
          HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS
          BENEFICIAL OWNERSHIP OF 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") AND CERTAIN OTHER PROPERTY.

                                     A-7-1
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2004-CB7, CLASS AF-3

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.
<TABLE>
<S>                                            <C>
Series 2004-CB7, Class AF-3                     Original Class Certificate Principal Balance of
                                                the Class AF-3 Certificates as of the Closing
Pass-Through Rate:  Fixed                       Date: $ 7,000,000.00

Date of Pooling and Servicing Agreement         Initial Certificate Principal Balance:
and Cut-off Date: October 1, 2004               $ 7,000,000.00

First Distribution Date: November 26, 2004      Servicer:  Litton Loan Servicing LP

No. 1                                           Trustee: U.S. Bank National Association

CUSIP: 17307G LL 0                              Closing Date: October 29, 2004
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     A-7-2
<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class
AF-3 Certificates) in that certain beneficial ownership interest evidenced by
all the Class AF-3 Certificates in the Trust Fund created pursuant to a Pooling
and Servicing Agreement, dated as specified above (the "Agreement"), among
Citigroup Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Servicer, the
Seller and 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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
AF-3 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class AF-3 Certificate becomes a Definitive Certificate,
the Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class AF-3
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class AF-3 Pass-Through Rate on each Distribution Date will be a
fixed rate per annum equal to 4.644%, subject to a rate cap and subject to
increase by 0.50% for each interest accrual period following the distribution
date on which the aggregate principal balance of the mortgage loans remaining in
the trust is reduced to less than 10% of the aggregate

                                     A-7-3
<PAGE>

principal balance of the mortgage loans as of the cut-off date. Interest will
accrue on the Class AF-3 Certificates during each Interest Accrual Period at the
Class AF-3 Pass-Through Rate.

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class AF-3 Certificates.

          The Class AF-3 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the agreement. 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 this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
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 of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any

                                     A-7-4
<PAGE>

tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Servicer, the
Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-7-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Certificate Registrar

                                            By:________________________________
                                                     Authorized Signatory

Date of authentication: October  __, 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust)(Minor)
TEN ENT  -as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN   -as joint tenants with right                        ________________
          of survivorship and not as                             (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto (Please print or typewrite name, address including postal zip
code, and Taxpayer Identification Number of assignee) a Percentage Interest
equal to ____% evidenced by the within asset-backed Certificate and hereby
authorize(s) the registration of transfer 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 Percentage Interest 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-7-7
<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-7-8
<PAGE>

                                   EXHIBIT A-8

                         FORM OF CLASS AF-4 CERTIFICATE

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
          THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
          PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
          & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
          REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
          SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
          DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
          BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
          HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS
          BENEFICIAL OWNERSHIP OF 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") AND CERTAIN OTHER PROPERTY.

                                     A-8-1
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2004-CB7, CLASS AF-4

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

<TABLE>
<S>                                            <C>
Series 2004-CB7, Class AF-4                     Original Class Certificate Principal Balance of
                                                the Class AF-4 Certificates as of the Closing
Pass-Through Rate:  Fixed                       Date: $ 10,784,000.00

Date of Pooling  and  Servicing  Agreement      Initial Certificate Principal Balance:
and  Cut-off Date: October 1, 2004              $ 10,784,000.00

First Distribution Date: November 26, 2004      Servicer:  Litton Loan Servicing LP

No. 1                                           Trustee: U.S. Bank National Association

CUSIP: 17307G LM 8                              Closing Date: October 29, 2004
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     A-8-2
<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class
AF-4 Certificates) in that certain beneficial ownership interest evidenced by
all the Class AF-4 Certificates in the Trust Fund created pursuant to a Pooling
and Servicing Agreement, dated as specified above (the "Agreement"), among
Citigroup Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Servicer, the
Seller and 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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
AF-4 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class AF-4 Certificate becomes a Definitive Certificate,
the Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class AF-4
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class AF-4 Pass-Through Rate on each Distribution Date will be a
fixed rate per annum equal to 5.118%, subject to a rate cap and subject to
increase by 0.50% for each interest accrual period following the distribution
date on which the aggregate principal balance of the mortgage loans remaining in
the trust is reduced to less than 10% of the aggregate principal balance of the
mortgage loans as of the cut-off date. Interest will accrue on the Class AF-4
Certificates during each Interest Accrual Period at the Class AF-4 Pass-Through
Rate.

                                     A-8-3
<PAGE>

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class AF-4 Certificates.

          The Class AF-4 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the agreement. 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 this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
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 of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

                                     A-8-4
<PAGE>

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Servicer, the
Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-8-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:________________________________
                                                 Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Certificate Registrar

                                        By:________________________________
                                                Authorized Signatory

Date of authentication: October  __, 2004

<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
Ithe face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

TEN COM  -as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust) (Minor)
TEN ENT  -as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN   -as joint tenants with right                        ________________
          of survivorship and not as                            (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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-8-7
<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-8-8
<PAGE>

                                   EXHIBIT A-9

                         FORM OF CLASS AF-5 CERTIFICATE

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
          THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
          PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
          & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
          REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
          SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
          DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
          BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
          HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS
          BENEFICIAL OWNERSHIP OF 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") AND CERTAIN OTHER PROPERTY.

                                     A-9-1
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2004-CB7, CLASS AF-5

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

<TABLE>
<S>                                            <C>
Series 2004-CB7, Class AF-5                     Original Class Certificate Principal Balance of
                                                the Class AF-5 Certificates as of the Closing Date: $
Pass-Through Rate:  Fixed                                 13,893,000.00

Date of Pooling and Servicing Agreement         Initial Certificate Principal Balance:
and  Cut-off  Date: October 1, 2004             $ 13,893,000.00

First Distribution Date: November 26, 2004      Servicer:  Litton Loan Servicing LP

No. 1                                           Trustee: U.S. Bank National Association

CUSIP: 17307G LN 6                              Closing Date: October 29, 2004
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     A-9-2
<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class
AF-5 Certificates) in that certain beneficial ownership interest evidenced by
all the Class AF-5 Certificates in the Trust Fund created pursuant to a Pooling
and Servicing Agreement, dated as specified above (the "Agreement"), among
Citigroup Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Servicer, the
Seller and 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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
AF-5 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class AF-5 Certificate becomes a Definitive Certificate,
the Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class AF-5
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class AF-5 Pass-Through Rate on each Distribution Date will be a
fixed rate per annum equal to 4.585%, subject to a rate cap and subject to
increase by 0.50% for each interest accrual period following the distribution
date on which the aggregate principal balance of the mortgage loans remaining in
the trust is reduced to less than 10% of the aggregate principal balance of the
mortgage loans as of the cut-off date. Interest will accrue on the Class AF-5
Certificates during each Interest Accrual Period at the Class AF-5 Pass-Through
Rate.

                                     A-9-3
<PAGE>

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class AF-5 Certificates.

          The Class AF-5 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the agreement. 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 this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
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 of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

                                     A-9-4
<PAGE>

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Servicer, the
Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-9-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:________________________________
                                                Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Certificate Registrar

                                        By:________________________________
                                                Authorized Signatory

Date of authentication: October  __, 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common          UNIF GIFT MIN ACT - Custodian
                                                            (Cust)(Minor)
TEN ENT  -as tenants by the entireties                      under Uniform Gifts
                                                            to Minors Act
JT TEN   -as joint tenants with right                       ________________
          of survivorship and not as                            (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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-9-7
<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-9-8

<PAGE>
                                   EXHIBIT B-1

                          FORM OF CLASS B-1 CERTIFICATE

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
          THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
          PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
          & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
          REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
          SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
          DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
          BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
          HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A
          CERTIFICATES AND THE MEZZANINE CERTIFICATES AS DESCRIBED IN THE
          POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS
          BENEFICIAL OWNERSHIP OF 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") AND CERTAIN OTHER PROPERTY.

                                     B-1-1
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2004-CB7, CLASS B-1

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

<TABLE>
<S>                                         <C>
Series 2004-CB7, Class B-1                   Original Class Certificate Principal Balance of
                                             the Class B-1 Certificates as of the Closing
Pass-Through Rate:  Variable                 Date: $ 6,004,000.00

Date of Pooling and  Servicing  Agreement    Initial Certificate Principal Balance:
and Cut-off Date:October 1, 2004             $ 6,004,000.00

First Distribution Date: November 26, 2004   Servicer:  Litton Loan Servicing LP

No. 1                                        Trustee: U.S. Bank National Association

CUSIP: 17307G LS 5                           Closing Date: October 29, 2004
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     B-1-2
<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class B-1
Certificates) in that certain beneficial ownership interest evidenced by all the
Class B-1 Certificates in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Servicer, the Seller and
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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
B-1 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class B-1 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class B-1
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class B-1 Pass-Through Rate on each Distribution Date will be a
rate per annum equal to the lesser of (i) the sum of one month LIBOR plus the
Class B-1 Certificate Margin and (ii) the related Rate Cap for such Distribution
Date. Interest will accrue on the Class B-1 Certificates during each Interest
Accrual Period at the Class B-1 Pass-Through Rate.

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof

                                     B-1-3
<PAGE>

(herein called the "Certificates") and representing a Percentage Interest in the
Class B-1 Certificates.

          The Class B-1 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          This certificate is subordinated in right of payment to the Class A
Certificates and the Class M Certificates as described in the Pooling and
Servicing Agreement referred to herein.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer, the Seller and
the Trustee with the consent of the Holders of Certificates entitled to the
Voting Rights identified in the agreement. 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 this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
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 of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

                                     B-1-4
<PAGE>

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Servicer, the
Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-1-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                             U.S. BANK NATIONAL ASSOCIATION,
                                             as Certificate Registrar

                                            By:________________________________
                                                     Authorized Signatory

Date of authentication: October  ___, 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common          UNIF GIFT MIN ACT - Custodian
                                                            (Cust) (Minor)
TEN ENT  -as tenants by the entireties                      under Uniform Gifts
                                                            to Minors Act
JT TEN   -as  joint tenants with right                      ________________
          of survivorship and not as                            (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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-1-7
<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.

                                     B-1-8
<PAGE>

                                   EXHIBIT B-2

                          FORM OF CLASS B-2 CERTIFICATE

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
          THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
          PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
          & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
          REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
          SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
          DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
          BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
          HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A
          CERTIFICATES, THE MEZZANINE CERTIFICATES AND THE CLASS B-1
          CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
          REFERRED TO HEREIN.

          EXCEPT AS PROVIDED IN SECTION 5.02(D) OF THE POOLING AND SERVICING
          AGREEMENT REFERRED TO HEREIN, THIS CERTIFICATE MAY NOT BE PURCHASED BY
          OR TRANSFERRED TO ANY PERSON THAT HAS NOT DELIVERED A REPRESENTATION
          LETTER STATING EITHER (A) THAT THE TRANSFEREE IS NOT AN EMPLOYEE
          BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT SUBJECT TO TITLE I OF THE
          EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"),
          OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
          "CODE"), (COLLECTIVELY, A "PLAN"), AND IS NOT ACTING ON BEHALF OF OR
          INVESTING THE ASSETS OF A PLAN OR (B) SUBJECT TO CERTAIN CONDITIONS
          SET FORTH IN THE POOLING AND SERVICING AGREEMENT, THAT THE SOURCE OF
          FUNDS USED TO PURCHASE THIS CERTIFICATE IS AN "INSURANCE COMPANY
          GENERAL ACCOUNT." EACH PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY
          INTEREST THEREIN SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS
          REQUIRED BY THE REPRESENTATION LETTER REFERRED TO IN THE PRECEDING
          SENTENCE, UNLESS SUCH PERSON SHALL HAVE PROVIDED SUCH REPRESENTATION
          LETTER REFERRED TO IN THE PRECEDING SENTENCE TO THE CERTIFICATE
          REGISTRAR. THE POOLING AND SERVICING AGREEMENT PROVIDES THAT ANY
          ATTEMPTED OR PURPORTED TRANSFER IN VIOLATION OF THESE TRANSFER
          RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY
          PURPORTED TRANSFEREE.

                                     B-2-1
<PAGE>

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS
          BENEFICIAL OWNERSHIP OF 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") AND CERTAIN OTHER PROPERTY.

                                     B-2-2
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2004-CB7, CLASS B-2

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.
<TABLE>
<S>                                            <C>
Series 2004-CB7, Class B-2                      Original Class Certificate Principal Balance of
                                                the Class B-2 Certificates as of the Closing
Pass-Through Rate:  Variable                    Date: $ 5,283,000.00

Date of Pooling and Servicing Agreement         Initial Certificate Principal Balance:
and Cut-off Date: October 1, 2004               $ 5,283,000.00

First Distribution Date: November 26, 2004      Servicer:  Litton Loan Servicing LP

No. 1                                           Trustee: U.S. Bank National Association

CUSIP: 17307G LT 3                              Closing Date: October 29, 2004
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     B-2-3
<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class B-2
Certificates) in that certain beneficial ownership interest evidenced by all the
Class B-2 Certificates in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Servicer, the Seller and
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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
B-2 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class B-2 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class B-2
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class B-2 Pass-Through Rate on each Distribution Date will be a
rate per annum equal to the lesser of (i) the sum of one month LIBOR plus the
Class B-2 Certificate Margin and (ii) the related Rate Cap for such Distribution
Date. Interest will accrue on the Class B-2 Certificates during each Interest
Accrual Period at the Class B-2 Pass-Through Rate.

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class B-2 Certificates.

                                     B-2-4
<PAGE>

          The Class B-2 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          This certificate is subordinated in right of payment to the Class A
Certificates, the Class M Certificates and the Class B-1 Certificates as
described in the Pooling and Servicing Agreement referred to herein.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer, the Seller and
the Trustee with the consent of the Holders of Certificates entitled to the
Voting Rights identified in the agreement. 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 this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
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 of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the

                                     B-2-5
<PAGE>

Depositor, the Servicer, the Trustee, the Certificate Registrar nor any such
agent shall be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-2-6
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:________________________________
                                           Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Certificate Registrar

                                        By:________________________________
                                                 Authorized Signatory

Date of authentication: October  ___, 2004

<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
Ithe face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

TEN COM  -as tenants in common          UNIF GIFT MIN ACT - Custodian
                                                            (Cust)(Minor)
TEN ENT  -as tenants by the entireties                      under Uniform Gifts
                                                            to Minors Act
JT TEN   -as joint tenants with right                       ________________
          of survivorship and not as                            (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto ______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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-2-8
<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-2-9
<PAGE>

                                   EXHIBIT B-3

                          FORM OF CLASS B-3 CERTIFICATE

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A
CERTIFICATES, THE MEZZANINE CERTIFICATES, THE CLASS B-1 CERTIFICATES AND THE
CLASS B-2 CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.

EXCEPT AS PROVIDED IN SECTION 5.02(D) OF THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN, THIS CERTIFICATE MAY NOT BE PURCHASED BY OR TRANSFERRED TO
ANY PERSON THAT HAS NOT DELIVERED A REPRESENTATION LETTER STATING EITHER (A)
THAT THE TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE"), (COLLECTIVELY, A "PLAN"), AND IS NOT ACTING ON
BEHALF OF OR INVESTING THE ASSETS OF A PLAN OR (B) SUBJECT TO CERTAIN CONDITIONS
SET FORTH IN THE POOLING AND SERVICING AGREEMENT, THAT THE SOURCE OF FUNDS USED
TO PURCHASE THIS CERTIFICATE IS AN "INSURANCE COMPANY GENERAL ACCOUNT." EACH
PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY INTEREST THEREIN SHALL BE DEEMED TO
HAVE MADE THE REPRESENTATIONS REQUIRED BY THE REPRESENTATION LETTER REFERRED TO
IN THE PRECEDING SENTENCE, UNLESS SUCH PERSON SHALL HAVE PROVIDED SUCH
REPRESENTATION LETTER REFERRED TO IN THE PRECEDING SENTENCE TO THE CERTIFICATE
REGISTRAR. THE POOLING AND SERVICING AGREEMENT PROVIDES THAT ANY ATTEMPTED OR
PURPORTED TRANSFER IN VIOLATION OF THESE TRANSFER RESTRICTIONS WILL BE NULL AND
VOID AND WILL VEST NO RIGHTS IN ANY PURPORTED TRANSFEREE.

                                     B-3-1
<PAGE>

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF 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") AND CERTAIN OTHER
PROPERTY.

                                     B-3-2
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2004-CB7, CLASS B-3

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

<TABLE>
<S>                                            <C>
Series 2004-CB7, Class B-3                      Original Class Certificate Principal Balance of
                                                the Class B-3 Certificates as of the Closing
Pass-Through Rate:  Variable                    Date: $ 4,804,000.00

Date of Pooling and Servicing Agreement and     Initial Certificate Principal Balance:
Cut-off Date: October 1, 2004                   $ 4,804,000.00

First Distribution Date: November 26, 2004      Servicer:  Litton Loan Servicing LP

No. 1                                           Trustee: U.S. Bank National Association

CUSIP: 17307G LU 0                              Closing Date: October 29, 2004
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     B-3-3
<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class B-3
Certificates) in that certain beneficial ownership interest evidenced by all the
Class B-3 Certificates in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Servicer, the Seller and
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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
B-3 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class B-3 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class B-3
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class B-3 Pass-Through Rate on each Distribution Date will be a
rate per annum equal to the lesser of (i) the sum of one month LIBOR plus the
Class B-3 Certificate Margin and (ii) the related Rate Cap for such Distribution
Date. Interest will accrue on the Class B-3 Certificates during each Interest
Accrual Period at the Class B-3 Pass-Through Rate.

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class B-3 Certificates.

                                     B-3-4
<PAGE>

          The Class B-3 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          This certificate is subordinated in right of payment to the Class A
Certificates, the Class M Certificates, the Class B-1 Certificates and the Class
B-2 Certificates as described in the Pooling and Servicing Agreement referred to
herein.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer, the Seller and
the Trustee with the consent of the Holders of Certificates entitled to the
Voting Rights identified in the agreement. 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 this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
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 of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the

                                     B-3-5
<PAGE>

Depositor, the Servicer, the Trustee, the Certificate Registrar nor any such
agent shall be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-3-6
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:________________________________
                                                  Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Certificate Registrar

                                        By:________________________________
                                                Authorized Signatory

Date of authentication: October  ___, 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust)(Minor)
TEN ENT  -as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN   -as joint tenants with right                        ________________
          of survivorship and not as                             (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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-3-8
<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-3-9
<PAGE>

                                   EXHIBIT B-4

                          FORM OF CLASS B-4 CERTIFICATE

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
          THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
          PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
          & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
          REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
          SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
          DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
          BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
          HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A
          CERTIFICATES, THE MEZZANINE CERTIFICATES, THE CLASS B-1 CERTIFICATES,
          THE CLASS B-2 CERTIFICATES AND THE CLASS B-3 CERTIFICATES AS DESCRIBED
          IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

          THIS CLASS B-4 CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER
          THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE
          SECURITIES LAWS OF ANY STATE. ANY RESALE, TRANSFER OR OTHER
          DISPOSITION OF THIS CERTIFICATE WITHOUT SUCH REGISTRATION OR
          QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION THAT DOES NOT REQUIRE
          SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE
          PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT
          REFERRED TO HEREIN.

          NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
          RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
          SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED
          EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS
          BENEFICIAL OWNERSHIP OF 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") AND CERTAIN OTHER PROPERTY.

                                     B-4-1
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES

                           SERIES 2004-CB7, CLASS B-4

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

<TABLE>
<S>                                            <C>
Series 2004-CB7, Class B-4                      Original Class Certificate Principal Balance of
                                                the Class B-4 Certificates as of the Closing
Pass-Through Rate:  Variable                    Date: $ 7,445,000.00

Date of Pooling and Servicing Agreement and     Initial Certificate Principal Balance:
Cut-off Date: October 1, 2004                   $ 7,445,000.00

First Distribution Date: November 26, 2004      Servicer:  Litton Loan Servicing LP

No. 1                                           Trustee: U.S. Bank National Association

CUSIP: 17307G LV 8                              Closing Date: October 29, 2004
</TABLE>

                                     B-4-2
<PAGE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class B-4
Certificates) in that certain beneficial ownership interest evidenced by all the
Class B-4 Certificates in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Servicer, the Seller and
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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
B-4 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class B-4 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class B-4
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class B-4 Pass-Through Rate on each Distribution Date will be a
rate per annum equal to the lesser of (i) the sum of one month LIBOR plus the
Class B-4 Certificate Margin and (ii) the related Rate Cap for such Distribution
Date. Interest will accrue on the Class B-4 Certificates during each Interest
Accrual Period at the Class B-4 Pass-Through Rate.

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class B-4 Certificates.

                                     B-4-3
<PAGE>

          The Class B-4 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          This certificate is subordinated in right of payment to the Class A
Certificates, the Class M Certificates, the Class B-1 Certificates, the Class
B-2 Certificates and the Class B-3 Certificates as described in the Pooling and
Servicing Agreement referred to herein.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer, the Seller and
the Trustee with the consent of the Holders of Certificates entitled to the
Voting Rights identified in the agreement. 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 this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification, the Certificate Registrar shall require, in order to assure
compliance with such laws, either (i) that the Certificateholder desiring to
effect the transfer and such Certificateholder's prospective transferee each
execute a representation letter in the form described by the Agreement
certifying to the Certificate Registrar the facts surrounding the transfer, or
(ii) that the Depositor and the Certificate Registrar shall require an Opinion
of

                                     B-4-4
<PAGE>

Counsel satisfactory to them that such transfer may be made without such
registration or qualification, which Opinion of Counsel shall not be an expense
of the Depositor, the Trustee or the Certificate Registrar, in their respective
capacities as such. None of the Depositor, the Certificate Registrar nor the
Trustee is obligated to register or qualify the Class of Certificates specified
on the face hereof under the 1933 Act or any other securities law or to take any
action not otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any such Certificateholder
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee, the Depositor, the Certificate Registrar and any Servicer 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 or any interest herein may be made to
employee benefit plans and certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and
collective investment funds and separate accounts in which such plans, accounts
or arrangements are invested that are subject to the fiduciary responsibility
provisions of ERISA and Section 4975 of the Code ("Plans") or any person who is
directly or indirectly purchasing this Certificate or interest herein on behalf
of, as named fiduciary of, as trustee of, or with assets of a Plan unless the
opinion letter in section 5.02 of the Pooling and Servicing Agreement is
provided.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Servicer, the
Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

                                     B-4-5
<PAGE>

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-4-6
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:________________________________
                                               Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Certificate Registrar

                                        By:________________________________
                                                Authorized Signatory

Date of authentication: October         , 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common          UNIF GIFT MIN ACT - Custodian
                                                            (Cust) (Minor)
TEN ENT  -as tenants by the entireties                      under Uniform Gifts
                                                            to Minors Act
JT TEN   -as joint tenants with right                       ________________
          of survivorship and not as                           (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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-4-7

<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.

                                      B-4-8
<PAGE>

                                  EXHIBIT C-1-1

                           FORM OF CLASS R CERTIFICATE

          THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES PERSON.

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS THE
          "RESIDUAL INTEREST" IN SIX SEPARATE "REAL ESTATE MORTGAGE INVESTMENT
          CONDUITS," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G
          AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
          "CODE").

          THIS CLASS R CERTIFICATE IS SUBORDINATE TO THE OFFERED CERTIFICATES
          AND THE CLASS B-4 CERTIFICATES OF THIS SERIES TO THE EXTENT DESCRIBED
          HEREIN AND IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

          THIS CLASS R CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS UNTIL SUCH
          TIME AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO
          HEREIN.

          THIS CLASS R CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER
          THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE
          SECURITIES LAWS OF ANY STATE. ANY RESALE, TRANSFER OR OTHER
          DISPOSITION OF THIS CERTIFICATE WITHOUT SUCH REGISTRATION OR
          QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION THAT DOES NOT REQUIRE
          SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE
          PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT
          REFERRED TO HEREIN.

          NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
          RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
          SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED
          EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

          ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CLASS R CERTIFICATE
          MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (1) AN AFFIDAVIT
          TO THE CERTIFICATE REGISTRAR THAT 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

                                    C-1-1-1
<PAGE>

          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
          HEREINAFTER REFERRED TO AS A "DISQUALIFIED ORGANIZATION"), OR (D) AN
          AGENT OF A DISQUALIFIED ORGANIZATION AND (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 CLASS R 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 A CLASS R CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE
          SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH
          AND THE PROVISIONS OF SECTION 5.02(D) OF THE POOLING AND SERVICING
          AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED
          ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS
          CLASS R CERTIFICATE.

                                    C-1-1-2
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                            SERIES 2004-CB7, CLASS R

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

<TABLE>
<S>                                            <C>
Series 2004-CB7, Class R                        Servicer:  Litton Loan Servicing LP

Date of Pooling and Servicing Agreement and     Trustee:  U.S. Bank National Association
Cut-off Date: October 1, 2004
                                                Closing Date: October 29, 2004
First Distribution Date: November 26, 2004

No. 1

Percentage Interest:  100%
</TABLE>

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                    C-1-1-3
<PAGE>

          This certifies that CMI Investors 2, LP is the registered owner of a
Percentage Interest set forth above in that certain beneficial ownership
interest evidenced by all the Class R Certificates in the Trust Fund created
pursuant to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Citigroup Mortgage Loan Trust Inc. (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Seller and 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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs or the Closing
Date, in the case of the first Distribution Date (the "Record Date"), from funds
in the Distribution Account in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to the Holders of Class R Certificates on such Distribution Date pursuant to the
Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class R
Certificates the aggregate Percentage Interest of which is in excess of a 66%
Percentage Interest of the Class R Certificates, or by check mailed by first
class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register, provided that the Certificate
Registrar may deduct a reasonable wire transfer fee from any payment made by
wire transfer. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
the Percentage Interest specified on the face hereof.

          The Class R 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                                    C-1-1-4
<PAGE>

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer and the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer, the Seller and
the Trustee with the consent of the Holders of Certificates entitled to the
Voting Rights identified in the agreement. 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 this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification, the Certificate Registrar shall require, in order to assure
compliance with such laws, either (i) that the Certificateholder desiring to
effect the transfer and such Certificateholder's prospective transferee each
execute a representation letter in the form described by the Agreement
certifying to the Certificate Registrar the facts surrounding the transfer, or
(ii) that the Depositor and the Certificate Registrar shall require an Opinion
of Counsel satisfactory to them that such transfer may be made without such
registration or qualification, which Opinion of Counsel shall not be an expense
of the Depositor, the Trustee or the Certificate Registrar, in their respective
capacities as such. None of the Depositor, the Certificate Registrar nor the
Trustee is obligated to register or qualify the Class of Certificates specified
on the face hereof under the 1933 Act or any other securities law or to take any
action not otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any such Certificateholder
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee, the Depositor, the Certificate Registrar and any Servicer 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.

                                    C-1-1-5
<PAGE>

          No transfer of this Certificate or any interest herein may be made to
employee benefit plans and certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and
collective investment funds and separate accounts in which such plans, accounts
or arrangements are invested that are subject to the fiduciary responsibility
provisions of ERISA and Section 4975 of the Code ("Plans") or any person who is
directly or indirectly purchasing this Certificate or interest herein on behalf
of, as named fiduciary of, as trustee of, or with assets of a Plan.

          The Holder of this Certificate, by its acceptance hereof, shall be
deemed for all purposes to have consented to the provisions of Section 5.02 of
the Agreement and to any amendment of the Agreement deemed necessary by counsel
of the Depositor to ensure that the transfer of this Certificate to any Person
other than a Permitted Transferee or any other Person will not cause the Trust
to cease to qualify as eight separate REMICs or cause the imposition of a tax
upon the Trust.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Servicer, the
Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                    C-1-1-6
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:________________________________
                                                  Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Certificate Registrar

                                        By:________________________________
                                                Authorized Signatory

Date of authentication: October        , 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common            UNIF GIFT MIN ACT -Custodian
                                                             (Cust) (Minor)
TEN ENT  -as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN   -as joint tenants with right                        ________________
          of survivorship and not as                             (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s)
unto___________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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

                                    C-1-1-8
<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.

                                    C-1-1-9
<PAGE>

                                  EXHIBIT C-1-2

                          FORM OF CLASS R-X CERTIFICATE

          THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES PERSON.

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS THE
          "RESIDUAL INTEREST" IN SIX SEPARATE "REAL ESTATE MORTGAGE INVESTMENT
          CONDUITS," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G
          AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
          "CODE").

          THIS CLASS R-X CERTIFICATE IS SUBORDINATE TO THE OFFERED CERTIFICATES,
          THE CLASS B-2 CERTIFICATES, THE CLASS B-3 CERTIFICATES AND THE CLASS
          B-4 CERTIFICATES OF THIS SERIES TO THE EXTENT DESCRIBED HEREIN AND IN
          THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

          THIS CLASS R-X CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS UNTIL SUCH
          TIME AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO
          HEREIN.

          THIS CLASS R-X CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER
          THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE
          SECURITIES LAWS OF ANY STATE. ANY RESALE, TRANSFER OR OTHER
          DISPOSITION OF THIS CERTIFICATE WITHOUT SUCH REGISTRATION OR
          QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION THAT DOES NOT REQUIRE
          SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE
          PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT
          REFERRED TO HEREIN.

          NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
          RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
          SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED
          EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

          ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CLASS R-X
          CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (1)
          AN AFFIDAVIT TO THE CERTIFICATE REGISTRAR THAT 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

                                    C-1-2-1
<PAGE>

          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 HEREINAFTER REFERRED TO AS A
          "DISQUALIFIED ORGANIZATION"), OR (D) AN AGENT OF A DISQUALIFIED
          ORGANIZATION AND (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 CLASS R-X 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 A CLASS R-X CERTIFICATE BY ACCEPTANCE OF THIS
          CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF
          THIS PARAGRAPH AND THE PROVISIONS OF SECTION 5.02(D) OF THE POOLING
          AND SERVICING AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A
          DISQUALIFIED ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL
          OWNERSHIP OF THIS CLASS R-X CERTIFICATE.

                                    C-1-2-2
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2004-CB7, CLASS R-X

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

<TABLE>
<S>                                            <C>
Series 2004-CB7, Class R-X                      Servicer:  Litton Loan Servicing LP

Date of Pooling and Servicing Agreement and     Trustee:  U.S. Bank National Association
Cut-off Date: October 1, 2004
                                                Closing Date: October 29, 2004
First Distribution Date: November 26, 2004

No. 1

Percentage Interest:  100%
</TABLE>

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                    C-1-2-3
<PAGE>

          This certifies that Saul I. Sanders is the registered owner of a
Percentage Interest set forth above in that certain beneficial ownership
interest evidenced by all the Class R-X Certificates in the Trust Fund created
pursuant to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Citigroup Mortgage Loan Trust Inc. (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Seller and 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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs or the Closing
Date, in the case of the first Distribution Date (the "Record Date"), from funds
in the Distribution Account in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to the Holders of Class R-X Certificates on such Distribution Date pursuant to
the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class R-X
Certificates the aggregate Percentage Interest of which is in excess of a 66%
Percentage Interest of the Class R-X Certificates, or by check mailed by first
class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register, provided that the Certificate
Registrar may deduct a reasonable wire transfer fee from any payment made by
wire transfer. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
the Percentage Interest specified on the face hereof.

          The Class R-X 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                                    C-1-2-4
<PAGE>

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer and the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer, the Seller and
the Trustee with the consent of the Holders of Certificates entitled to the
Voting Rights identified in the agreement. 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 this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification, the Certificate Registrar shall require, in order to assure
compliance with such laws, either (i) that the Certificateholder desiring to
effect the transfer and such Certificateholder's prospective transferee each
execute a representation letter in the form described by the Agreement
certifying to the Certificate Registrar the facts surrounding the transfer, or
(ii) that the Depositor and the Certificate Registrar shall require an Opinion
of Counsel satisfactory to them that such transfer may be made without such
registration or qualification, which Opinion of Counsel shall not be an expense
of the Depositor, the Trustee or the Certificate Registrar, in their respective
capacities as such. None of the Depositor, the Certificate Registrar nor the
Trustee is obligated to register or qualify the Class of Certificates specified
on the face hereof under the 1933 Act or any other securities law or to take any
action not otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any such Certificateholder
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee, the Depositor, the Certificate Registrar and any Servicer 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.

                                    C-1-2-5
<PAGE>

          No transfer of this Certificate or any interest herein may be made to
employee benefit plans and certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and
collective investment funds and separate accounts in which such plans, accounts
or arrangements are invested that are subject to the fiduciary responsibility
provisions of ERISA and Section 4975 of the Code ("Plans") or any person who is
directly or indirectly purchasing this Certificate or interest herein on behalf
of, as named fiduciary of, as trustee of, or with assets of a Plan unless the
opinion letter in Section 5.02 of the Pooling and Servicing Agreement is
provided.

          The Holder of this Certificate, by its acceptance hereof, shall be
deemed for all purposes to have consented to the provisions of Section 5.02 of
the Agreement and to any amendment of the Agreement deemed necessary by counsel
of the Depositor to ensure that the transfer of this Certificate to any Person
other than a Permitted Transferee or any other Person will not cause the Trust
to cease to qualify as eight separate REMICs or cause the imposition of a tax
upon the Trust.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Servicer, the
Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                    C-1-2-6
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:____________________________________
                                                   Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Certificate Registrar

                                        By:________________________________
                                                Authorized Signatory

Date of authentication: October        , 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust)(Minor)
TEN ENT  -as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN   -as joint tenants with right                        ________________
          of survivorship and not as                             (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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

                                    C-1-2-8
<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.

                                    C-1-2-9
<PAGE>

                                   EXHIBIT C-2

                          FORM OF CLASS M-1 CERTIFICATE

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
          THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
          PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
          & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
          REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
          SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
          DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
          BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
          HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A
          CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
          REFERRED TO HEREIN.

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS
          BENEFICIAL OWNERSHIP OF 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") AND CERTAIN OTHER PROPERTY.

                                     C-2-1
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2004-CB7, CLASS M-1

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

<TABLE>
<S>                                            <C>
Series 2004-CB7, Class M-1                      Original Class Certificate Principal Balance of
                                                the Class M-1 Certificates as of the Closing Date:
Pass-Through Rate:  Variable                    $ 27,618,000.00

Date of Pooling and Servicing Agreement and     Initial Certificate Principal Balance:
Cut-off Date: October 1, 2004                   $ 27,618,000.00

First Distribution Date: November 26, 2004      Servicer:  Litton Loan Servicing LP

No. 1                                           Trustee: U.S. Bank National Association

CUSIP: 17307G LP 1                              Closing Date: October 29, 2004
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     C-2-2
<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class M-1
Certificates) in that certain beneficial ownership interest evidenced by all the
Class M-1 Certificates in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Servicer, the Seller and
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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
M-1 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class M-1 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class M-1
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class M-1 Pass-Through Rate on each Distribution Date will be a
rate per annum equal to the lesser of (i) the sum of one month LIBOR plus the
Class M-1 Certificate Margin and (ii) the related Rate Cap for such Distribution
Date. Interest will accrue on the Class M-1 Certificates during each Interest
Accrual Period at the Class M-1 Pass-Through Rate.

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class M-1 Certificates.

                                     C-2-3
<PAGE>

          The Class M-1 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          This certificate is subordinated in right of payment to the Class A
Certificates as described in the Pooling and Servicing Agreement referred to
herein.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer, the Seller and
the Trustee with the consent of the Holders of Certificates entitled to the
Voting Rights identified in the agreement. 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 this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
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 of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Servicer, the
Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

                                     C-2-4
<PAGE>

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     C-2-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:________________________________
                                                Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Certificate Registrar

                                        By:________________________________
                                                 Authorized Signatory

Date of authentication: October  ___, 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust) (Minor)
TEN ENT  -as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN   -as  joint tenants with right                       ________________
          of survivorship and not as                             (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto ______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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

                                     C-2-7
<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.

                                     C-2-8
<PAGE>

                                   EXHIBIT C-3

                          FORM OF CLASS M-2 CERTIFICATE

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
          THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
          PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
          & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
          REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
          SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
          DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
          BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
          HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A
          CERTIFICATES AND THE CLASS M-1 CERTIFICATES AS DESCRIBED IN THE
          POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS
          BENEFICIAL OWNERSHIP OF 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") AND CERTAIN OTHER PROPERTY.

                                     C-3-1
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2004-CB7, CLASS M-2

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

<TABLE>
<S>                                            <C>
Series 2004-CB7, Class M-2                      Original Class Certificate Principal Balance of
                                                the Class M-2 Certificates as of the Closing
Pass-Through Rate:  Variable                    Date: $ 22,816,000.00

Date of Pooling and Servicing Agreement and     Initial Certificate Principal Balance:
Cut-off Date: October 1, 2004                   $ 22,816,000.00

First Distribution Date: November 26, 2004      Servicer:  Litton Loan Servicing LP

No. 1                                           Trustee: U.S. Bank National Association

CUSIP: 17307G LQ 9                              Closing Date: October 29, 2004
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     C-3-2
<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class M-2
Certificates) in that certain beneficial ownership interest evidenced by all the
Class M-2 Certificates in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Servicer, the Seller and
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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
M-2 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class M-2 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class M-2
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class M-2 Pass-Through Rate on each Distribution Date will be a
rate per annum equal to the lesser of (i) the sum of one month LIBOR plus the
Class M-2 Certificate Margin and (ii) the related Rate Cap for such Distribution
Date. Interest will accrue on the Class M-2 Certificates during each Interest
Accrual Period at the Class M-2 Pass-Through Rate.

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class M-2 Certificates.

                                     C-3-3
<PAGE>

          The Class M-2 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          This certificate is subordinated in right of payment to the Class A
Certificates and the Class M-1 Certificates as described in the Pooling and
Servicing Agreement referred to herein.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer, the Seller and
the Trustee with the consent of the Holders of Certificates entitled to the
Voting Rights identified in the agreement. 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 this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
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 of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the

                                     C-3-4
<PAGE>

Depositor, the Servicer, the Trustee, the Certificate Registrar nor any such
agent shall be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     C-3-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:________________________________
                                                Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Certificate Registrar

                                        By:________________________________
                                                Authorized Signatory

Date of authentication: October  ___, 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust)(Minor)
TEN ENT  -as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN   -as joint tenants with right                        ________________
          of survivorship and not as                             (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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

                                     C-3-7
<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.

                                     C-3-8
<PAGE>

                                   EXHIBIT C-4

                          FORM OF CLASS M-3 CERTIFICATE

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
          THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
          PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
          & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
          REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
          SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
          DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
          BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
          HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A
          CERTIFICATES, THE CLASS M-1 CERTIFICATES AND THE CLASS M-2
          CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
          REFERRED TO HEREIN.

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS
          BENEFICIAL OWNERSHIP OF 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") AND CERTAIN OTHER PROPERTY.

                                     C-4-1
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2004-CB7, CLASS M-3

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

<TABLE>
<S>                                            <C>
Series 2004-CB7, Class M-3                      Original Class Certificate Principal Balance of
                                                the Class M-3 Certificates as of the Closing
Pass-Through Rate:  Variable                    Date: $ 6,244,000.00

Date of Pooling and Servicing Agreement and     Initial Certificate Principal Balance:
Cut-off Date: October 1, 2004                   $ 6,244,000.00

First Distribution Date: November 26, 2004      Servicer:  Litton Loan Servicing LP

No. 1                                           Trustee: U.S. Bank National Association

CUSIP: 17307G LR 7                              Closing Date: October 29, 2004
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     C-4-2
<PAGE>

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class M-3
Certificates) in that certain beneficial ownership interest evidenced by all the
Class M-3 Certificates in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Servicer, the Seller and
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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
M-3 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class M-3 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class M-3
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

          The Class M-3 Pass-Through Rate on each Distribution Date will be a
rate per annum equal to the lesser of (i) the sum of one month LIBOR plus the
Class M-3 Certificate Margin and (ii) the related Rate Cap for such Distribution
Date. Interest will accrue on the Class M-3 Certificates during each Interest
Accrual Period at the Class M-3 Pass-Through Rate.

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class M-3 Certificates.

                                     C-4-3
<PAGE>

          The Class M-3 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          This certificate is subordinated in right of payment to the Class A
Certificates, the Class M-1 Certificates and the Class M-2 Certificates as
described in the Pooling and Servicing Agreement referred to herein.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer, the Seller and
the Trustee with the consent of the Holders of Certificates entitled to the
Voting Rights identified in the agreement. 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 this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
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 of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the

                                     C-4-4
<PAGE>

Depositor, the Servicer, the Trustee, the Certificate Registrar nor any such
agent shall be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     C-4-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:________________________________
                                                Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Certificate Registrar

                                        By:________________________________
                                                Authorized Signatory

Date of authentication: October  ___, 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common          UNIF GIFT MIN ACT - Custodian
                                                            (Cust) (Minor)
TEN ENT  -as tenants by the entireties                      under Uniform Gifts
                                                            to Minors Act
JT TEN   -as joint tenants with right                       ________________
          of survivorship and not as                            (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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

                                     C-4-7
<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.

                                     C-4-8
<PAGE>

                                   EXHIBIT C-5

                          FORM OF CLASS X CERTIFICATES

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A
          DIRECT OR INDIRECT BENEFICIAL INTEREST IN 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") AND IN CERTAIN OTHER PROPERTY.

          THIS CLASS X CERTIFICATE IS SUBORDINATE TO THE OFFERED CERTIFICATES,
          THE CLASS B-2 CERTIFICATES, THE CLASS B-3 CERTIFICATES AND THE CLASS
          B-4 CERTIFICATES OF THIS SERIES TO THE EXTENT DESCRIBED HEREIN AND IN
          THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

          THIS CLASS X CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS UNTIL SUCH
          TIME AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO
          HEREIN.

          THIS CLASS X CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER
          THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE
          SECURITIES LAWS OF ANY STATE. ANY RESALE, TRANSFER OR OTHER
          DISPOSITION OF THIS CERTIFICATE WITHOUT SUCH REGISTRATION OR
          QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION THAT DOES NOT REQUIRE
          SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE
          PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT
          REFERRED TO HEREIN.

          NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
          RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
          SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED
          EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

                                     C-5-1
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES

                            SERIES 2004-CB7, CLASS X

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.

<TABLE>
<S>                                                        <C>
Series 2004-CB7, Class X                                    Servicer:  Litton Loan Servicing LP

Date of Pooling and  Servicing  Agreement and Cut-off Date: Trustee:   U.S. Bank National Association
October 1, 2004
                                                            Closing Date: October 29, 2004
First Distribution Date: November 26, 2004

No. 1

Percentage Interest:  100%
</TABLE>

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          ASSET BACKED FUNDING CORPORATION, THE SERVICER, THE TRUSTEE OR ANY OF
          THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
          INSTRUMENTALITY OF THE UNITED STATES.

                                     C-5-2
<PAGE>

          This certifies that NIM I LLC is the registered owner of a Percentage
Interest set forth above in that certain beneficial ownership interest evidenced
by all the Class X Certificates in the Trust Fund created pursuant to a Pooling
and Servicing Agreement, dated as specified above (the "Agreement"), among
Citigroup Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Servicer, the
Seller and 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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs or the Closing
Date in the case of the first Distribution Date (the "Record Date"), from funds
in the Distribution Account in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to the Holders of Class X Certificates on such Distribution Date pursuant to the
Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class X
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of a 66% Percentage Interest of the Class X Certificates, or by check
mailed by first class mail to the address of the Person entitled thereto, as
such name and address shall appear on the Certificate Register, provided that
the Certificate Registrar may deduct a reasonable wire transfer fee from any
payment made by wire transfer. Notwithstanding the above, the final distribution
on this Certificate will be made after due notice by the Trustee of the pendency
of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose as
provided in the Agreement.

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
the Percentage Interest specified on the face hereof.

          The Class X 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                                     C-5-3
<PAGE>

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer, the Seller and
the Trustee with the consent of the Holders of Certificates entitled to the
Voting Rights identified in the agreement. 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 this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification, the Certificate Registrar shall require, in order to assure
compliance with such laws, either (i) that the Certificateholder desiring to
effect the transfer and such Certificateholder's prospective transferee each
execute a representation letter in the form described by the Agreement
certifying to the Certificate Registrar the facts surrounding the transfer, or
(ii) that the Depositor and the Certificate Registrar shall require an Opinion
of Counsel satisfactory to them that such transfer may be made without such
registration or qualification, which Opinion of Counsel shall not be an expense
of the Depositor, the Trustee or the Certificate Registrar, in their respective
capacities as such. None of the Depositor, the Certificate Registrar nor the
Trustee is obligated to register or qualify the Class of Certificates specified
on the face hereof under the 1933 Act or any other securities law or to take any
action not otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any such Certificateholder
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee, the Depositor, the Certificate Registrar and the Servicer 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.

                                     C-5-4
<PAGE>

          No transfer of this Certificate or any interest herein may be made to
employee benefit plans and certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and
collective investment funds and separate accounts in which such plans, accounts
or arrangements are invested that are subject to the fiduciary responsibility
provisions of ERISA and Section 4975 of the Code ("Plans") or any person who is
directly or indirectly purchasing this Certificate or interest herein on behalf
of, as named fiduciary of, as trustee of, or with assets of a Plan unless the
opinion letter in section 5.02 of the Pooling and Servicing Agreement is
provided.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer, the Trustee and the Certificate Registrar
and any agent of the Depositor, the Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Servicer, the
Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     C-5-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:________________________________
                                                Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Certificate Registrar

                                        By:________________________________
                                                Authorized Signatory

Date of authentication: October         , 2004

<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

TEN COM  -as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust)(Minor)
TEN ENT  -as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN   -as joint tenants with right                        ________________
          of survivorship and not as                             (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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

                                     C-5-7
<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.

                                     C-5-8
<PAGE>

                                   EXHIBIT C-6

                           FORM OF CLASS N CERTIFICATE

          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A
          DIRECT OR INDIRECT BENEFICIAL INTEREST IN 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") AND IN CERTAIN OTHER PROPERTY.

          THIS CLASS N CERTIFICATE IS SUBORDINATE TO THE OFFERED CERTIFICATES
          AND THE CLASS B-4 CERTIFICATES OF THIS SERIES TO THE EXTENT DESCRIBED
          HEREIN AND IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

          THIS CLASS N CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS UNTIL SUCH
          TIME AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO
          HEREIN.

          THIS CLASS N CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER
          THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE
          SECURITIES LAWS OF ANY STATE. ANY RESALE, TRANSFER OR OTHER
          DISPOSITION OF THIS CERTIFICATE WITHOUT SUCH REGISTRATION OR
          QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION THAT DOES NOT REQUIRE
          SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE
          PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT
          REFERRED TO HEREIN.

          NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
          RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
          SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED
          EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

                                     C-6-1
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES

                            SERIES 2004-CB7, CLASS N

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of fixed-rate and adjustable-rate one- to
four-family first and second lien mortgage loans formed and sold by

                       CITIGROUP MORTGAGE LOAN TRUST INC.
<TABLE>
<S>                                                 <C>
Series 2004-CB7, Class N                             Original Class N Notional Amount as of the
                                                     Closing Date: $13,449,265.61
Pass-Through Rate: 10.00 % per annum
                                                     Initial Notional Amount: $13,449,265.61
Date of Pooling  and  Servicing  Agreement  and
Cut-off Date: October 1, 2004                        Servicer:  Litton Loan Servicing LP

First Distribution Date:  November 26, 2004          Trustee:  U.S. Bank National Association

No. 1                                                Closing Date: October 29, 2004
</TABLE>

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          CITIGROUP MORTGAGE LOAN TRUST INC., THE SERVICER, THE TRUSTEE OR ANY
          OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY
          OR INSTRUMENTALITY OF THE UNITED STATES.

                                     C-6-2
<PAGE>

          This certifies that Citigroup Global Markets Inc. is the registered
owner of a Percentage Interest (obtained by dividing the Initial Notional Amount
of this Certificate by the Original Class N Notional Amount) in that certain
beneficial ownership interest evidenced by all the Class N Certificates in the
Trust Fund created pursuant to a Pooling and Servicing Agreement, dated as
specified above (the "Agreement"), among Citigroup Mortgage Loan Trust Inc.
(hereinafter called the "Depositor," which term includes any successor entity
under the Agreement), the Servicer, the Seller and 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, distributions 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 (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs or the Closing
Date in the case of the first Distribution Date (the "Record Date"), from funds
in the Distribution Account in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to the Holders of Class N Certificates on such Distribution Date pursuant to the
Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class N
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of a 66% Percentage Interest of the Class N Certificates, or by check
mailed by first class mail to the address of the Person entitled thereto, as
such name and address shall appear on the Certificate Register, provided that
the Certificate Registrar may deduct a reasonable wire transfer fee from any
payment made by wire transfer. Notwithstanding the above, the final distribution
on this Certificate will be made after due notice by the Trustee of the pendency
of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose as
provided in the Agreement.

          This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
the Percentage Interest specified on the face hereof.

          The Class N 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. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                                     C-6-3
<PAGE>

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee and the rights of the Certificateholders
under the Agreement at any time by the Depositor, the Servicer, the Seller and
the Trustee with the consent of the Holders of Certificates entitled to the
Voting Rights identified in the agreement. 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 this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, 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 Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification, the Certificate Registrar shall require, in order to assure
compliance with such laws, either (i) that the Certificateholder desiring to
effect the transfer and such Certificateholder's prospective transferee each
execute a representation letter in the form described by the Agreement
certifying to the Certificate Registrar the facts surrounding the transfer, or
(ii) that the Depositor and the Certificate Registrar shall require an Opinion
of Counsel satisfactory to them that such transfer may be made without such
registration or qualification, which Opinion of Counsel shall not be an expense
of the Depositor, the Trustee or the Certificate Registrar, in their respective
capacities as such. None of the Depositor, the Certificate Registrar nor the
Trustee is obligated to register or qualify the Class of Certificates specified
on the face hereof under the 1933 Act or any other securities law or to take any
action not otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any such Certificateholder
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee, the Depositor, the Certificate Registrar and the Servicer 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.

                                     C-6-4
<PAGE>

          No transfer of this Certificate or any interest herein may be made to
employee benefit plans and certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and
collective investment funds and separate accounts in which such plans, accounts
or arrangements are invested that are subject to the fiduciary responsibility
provisions of ERISA and Section 4975 of the Code ("Plans") or any person who is
directly or indirectly purchasing this Certificate or interest herein on behalf
of, as named fiduciary of, as trustee of, or with assets of a Plan unless the
opinion letter in section 5.02 of the Pooling and Servicing Agreement is
provided.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Certificate Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Servicer and the Trustee and the Certificate
Registrar and any agent of the Depositor, the Servicer, the Trustee or the
Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Servicer, the Trustee, the Certificate Registrar nor any such agent shall be
affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby 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 pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Principal Balance of the Mortgage Loans.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     C-6-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: October  ___, 2004

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:________________________________
                                                 Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Certificate Registrar

                                        By:________________________________
                                               Authorized Signatory

Date of authentication: October  ___, 2004

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  -as tenants in common          UNIF GIFT MIN ACT - Custodian
                                                            (Cust) (Minor)
TEN ENT  -as tenants by the entireties                      under Uniform Gifts
                                                            to Minors Act
JT TEN   -as joint tenants with right                       ________________
          of survivorship and not as                            (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer 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 Percentage Interest 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

                                     C-6-7
<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.

                                     C-6-8
<PAGE>

                                    EXHIBIT D

                             MORTGAGE LOAN SCHEDULE

                            (Available Upon Request)

                                      D-1
<PAGE>

                                    EXHIBIT E

                    FORM OF REQUEST FOR RELEASE OF DOCUMENTS

To:       U.S. Bank National Association
          60 Livingston Avenue
          EP-MN-WS3D
          St. Paul, Minnesota 55107-2292

                    Re:       Pooling and Servicing Agreement dated as of
                              October 1, 2004 amongCitigroup Mortgage Loan Trust
                              Inc., as depositor, Credit-Based Asset Servicing
                              and Securitization LLC, as seller, Litton Loan
                              Servicing LP, as servicer and U.S. Bank National
                              Association, as trustee

          All capitalized terms used herein shall have the means ascribed to
them in the Pooling and Servicing Agreement (the "Agreement") referenced above.

          In connection with the administration of the Mortgage Loans held by
you as Trustee pursuant to the Agreement, we request the release, and hereby
acknowledge receipt, of the Trustee'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:

                                      E-1
<PAGE>

                                  By:________________________
                                       (authorized signer)

                                  Issuer:

                                  Address:

Date:

Custodian

The Bank of New York

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

         Signature                                                     Date

Documents returned to Custodian:

         Custodian                                                     Date

                                      E-2
<PAGE>

                                   EXHIBIT F-1

             FORM OF TRUSTEE'S OR CUSTODIAN'S INITIAL CERTIFICATION

                             AVAILABLE UPON REQUEST

                                     F-1-1
<PAGE>

                                   EXHIBIT F-2

                      FORM OF TRUSTEE'S FINAL CERTIFICATION

                             AVAILABLE UPON REQUEST

                                     F-2-1
<PAGE>

                                   EXHIBIT F-3

                        FORM OF RECEIPT OF MORTGAGE NOTE

                          [BANK OF NEW YORK LETTERHEAD]

                            ACKNOWLEDGMENT OF RECEIPT

                                        October 29, 2004

U.S. Bank National Association,
as Trustee for C-BASS
Mortgage Loan Asset-Backed
Certificates, Series 2004-CB7
60 Livingston Ave, EP-MN-WS3D
St. Paul, Minnesota 55101-2292

          Re:       Custodial Agreement dated as of October 1, 2004 among U.S.
                    Bank National Association, as Trustee, Litton Loan Servicing
                    LP, as Servicer, and The Bank of New York, as Custodian

Ladies and Gentlemen:

          In accordance with the provisions of Section 4 of the above-referenced
Custodial Agreement, the undersigned, as the Custodian, hereby certifies as to
each Mortgage Loan in the Mortgage Schedule that (i) it has received the
original Mortgage Note with respect to each Mortgage Loan identified in the
Mortgage Loan Schedule attached hereto as Exhibit A and (ii) such Mortgage Note
has been reviewed by it and appears regular on its face and relates to such
Mortgage Loan. The Custodian makes no representations as to (i) the validity,
legality, enforceability, sufficiency, due authorization or genuineness of any
of the documents contained in each Custodial File or of any of the Mortgage
Loans or (ii) the collectability, insurability, effectiveness or suitability of
any such Mortgage Loan.

          The Custodian hereby confirms that it is holding each such Mortgage
Note as agent and bailee of, and custodian for the exclusive use and benefit,
and subject to the sole direction of the Trustee pursuant to the terms and
conditions of the Custodial Agreement.

          This Acknowledgment of Receipt is not divisible or negotiable.

          The Custodian will accept and act on instructions with respect to the
Mortgage Loans subject hereto upon surrender of this Trust Receipt and Initial
Certification at the office of the Subcustodian at Bank of New York Western
Trust Company, 700 South Flower Street, Suite 200, Los Angeles, California
90017, Attention: Reginald Carter.

          Capitalized terms used herein shall have the meaning ascribed tot hem
in the Custodial Agreement.

                                     F-3-1
<PAGE>

                                        THE BANK OF NEW YORK,
                                        as Custodian

                                        By: _________________________

                                     F-3-2
<PAGE>

                                    EXHIBIT G

                    FORM OF MORTGAGE LOAN PURCHASE AGREEMENT

                                      G-1

<PAGE>

================================================================================

                       CITIGROUP MORTGAGE LOAN TRUST INC.

                                  as Purchaser

                                       and

               CREDIT-BASED ASSET SERVICING AND SECURITIZATION LLC

                                    as Seller

                        MORTGAGE LOAN PURCHASE AGREEMENT

                  Fixed Rate and Adjustable Rate Mortgage Loans

                 Citigroup Mortgage Loan Trust, Series 2004-CB7
                 C-BASS Mortgage Loan Asset-Backed Certificates

                          Dated as of October 28, 2004

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               PAGE

<S>            <C>                 <C>                                                                          <C>
                                    ARTICLE I

                                   DEFINITIONS

   Section 1.01  Definitions......................................................................................1

                                   ARTICLE II

                SALE OF MORTGAGE LOANS; PAYMENT OF PURCHASE PRICE

   Section 2.01  Sale of Mortgage Loans...........................................................................2
   Section 2.02  Obligations of Seller Upon Sale..................................................................2
   Section 2.03  Payment of Purchase Price for the Mortgage Loans.................................................4

                                   ARTICLE III

               REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH

   Section 3.01  Seller Representations and Warranties Relating to the Mortgage Loans.............................5
   Section 3.02  Seller Representations and Warranties...........................................................15

                                   ARTICLE IV

                               SELLER'S COVENANTS

   Section 4.01  Covenants of the Seller.........................................................................18

                                    ARTICLE V

                  OPTIONAL PURCHASE OF DEFAULTED MORTGAGE LOANS

                                   ARTICLE VI

                                   TERMINATION

   Section 6.01  Termination.....................................................................................19
</TABLE>

                                       i
<PAGE>

                                   ARTICLE VII

                            MISCELLANEOUS PROVISIONS

<TABLE>
<S>             <C>                                                                                             <C>
   Section 7.01  Amendment.......................................................................................19
   Section 7.02  Governing Law...................................................................................19
   Section 7.03  Notices.........................................................................................19
   Section 7.04  Severability of Provisions......................................................................19
   Section 7.05  Counterparts....................................................................................20
   Section 7.06  Further Agreements..............................................................................20
   Section 7.07  Intention of the Parties........................................................................20
   Section 7.08  Successors and Assigns; Assignment of this Agreement............................................20
   Section 7.09  Survival........................................................................................21
</TABLE>

Schedule          Mortgage Loan Schedule

                                       ii
<PAGE>

          MORTGAGE LOAN PURCHASE AGREEMENT, dated as of October 28, 2004, (the
"AGREEMENT"), between CREDIT-BASED ASSET SERVICING AND SECURITIZATION LLC
("C-BASS" or the "SELLER") and CITIGROUP MORTGAGE LOAN TRUST INC. (the
"PURCHASER").

                              W I T N E S S E T H:

          WHEREAS, the Seller is the owner of either the notes or other evidence
of indebtedness (the "MORTGAGE NOTES") or other evidence of ownership so
indicated on Schedule I hereto, and the other documents or instruments
constituting the Mortgage File (collectively, the "MORTGAGE LOANS"); and

          WHEREAS, the Seller, as of the date hereof, owns the mortgages (the
"MORTGAGES") on the properties (the "MORTGAGED PROPERTIES") securing such
Mortgage Loans, including rights (a) to any property acquired by foreclosure or
deed in lieu of foreclosure or otherwise and (b) to the proceeds of any
insurance policies covering the Mortgage Loans or the Mortgaged Properties or
the obligors on the Mortgage Loans; and

          WHEREAS, the parties hereto desire that the Seller sell the Mortgage
Loans to the Purchaser and the Purchaser purchase the Mortgage Loans from the
Seller pursuant to the terms of this Agreement; and

          WHEREAS, pursuant to the terms of a Pooling and Servicing Agreement,
dated as of October 1, 2004 (the "POOLING AND SERVICING AGREEMENT"), among the
Seller as seller, the Purchaser, as depositor, Litton Loan Servicing LP
("Litton"), as servicer, and U.S. Bank National Association, as trustee (the
"Trustee"), the Purchaser will convey the Mortgage Loans to Citigroup Mortgage
Loan Trust, Series 2004-CB7.

                  NOW, THEREFORE, in consideration of the mutual covenants
herein contained, the parties hereto agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

          Section 1.01 DEFINITIONS. All capitalized terms used but not defined
herein and below shall have the meanings assigned thereto in the Pooling and
Servicing Agreement.

          "CUSTODIAN": A custodian acceptable to the Trustee, which may be the
Trustee and which shall not be the Seller or any affiliate of the Seller. The
initial Custodian shall be The Bank of New York.

          "INSURANCE AGREEMENT": With respect to any FHA Mortgage Loan, the
insurance contract issued by the FHA.

                                       1
<PAGE>

                                   ARTICLE II

                SALE OF MORTGAGE LOANS; PAYMENT OF PURCHASE PRICE

          Section 2.01 SALE OF MORTGAGE LOANS.

          (a) The Seller does hereby agree to and does hereby sell, assign, set
over, and otherwise convey to the Purchaser, without recourse, on the Closing
Date, all its right, title and interest, in and to (i) each Mortgage Loan and
the related Cut-off Date Principal Balance thereof, including any Related
Documents, (ii) all payments on or collections in respect of the Mortgage Loans
due after the Cut-off Date; (iii) property which secured such Mortgage Loan and
which has been acquired by foreclosure or deed in lieu of foreclosure; (iv) its
interest in any insurance policies in respect of the Mortgage Loans; and (v) all
proceeds of any of the foregoing.

          (b) The Seller, concurrently with the execution and delivery of this
Agreement does hereby sell, and in connection therewith hereby assigns to the
Purchaser, effective as of the Closing Date, without recourse, all proceeds of
the foregoing.

          Section 2.02 OBLIGATIONS OF SELLER UPON SALE.

          (a) In connection with any transfer pursuant to Section 2.01 hereof,
the Seller further agrees, at its own expense, on or prior to the Closing Date,
(x) to indicate in its books and records that the Mortgage Loans have been sold
to the Purchaser pursuant to this Agreement and (y) to deliver to the Purchaser
and the Trustee a computer file containing a true and complete list of all the
Mortgage Loans specifying, among other things, for each Mortgage Loan, as of the
Cut-off Date, its account number and Cut-off Date Principal Balance. Such file
(the "MORTGAGE LOAN SCHEDULE") which is included as Exhibit D to the Pooling and
Servicing Agreement, shall also be marked as Schedule I to this Agreement and is
hereby incorporated into and made a part of this Agreement.

          In connection with such transfer and assignment, the Seller, on behalf
of the Purchaser, does hereby deliver or cause to be delivered to, and deposit
with the Trustee, or its designated agent (the "Custodian"), the following
documents or instruments with respect to each Mortgage Loan (a "Mortgage File")
so transferred and assigned:

                    (i) the original Mortgage Note, endorsed either (A) in blank
          or (B) in the following form: "Pay to the order of U.S. Bank National
          Association, as Trustee, C-BASS Mortgage Loan Asset-Backed
          Certificates, Series 2004-CB7, without recourse," or with respect to
          any lost Mortgage Note, an original lost note affidavit, together with
          a copy of the related Mortgage Note;

                    (ii) the original Mortgage with evidence of recording
          thereon, and the original recorded power of attorney, if the Mortgage
          was executed pursuant to a power of attorney, with evidence of
          recording thereon or, if such Mortgage or power of attorney has been
          submitted for recording but has not been returned from the applicable
          public

                                       2
<PAGE>

          recording office, has been lost or is not otherwise available, a copy
          of such Mortgage or power of attorney, as the case may be, certified
          to be a true and complete copy of the original submitted for
          recording;

                    (iii) an original Assignment of Mortgage, in form and
          substance acceptable for recording. The Mortgage shall be assigned
          either (A) in blank or (B) to "U.S. Bank National Association, as
          Trustee, C-BASS Mortgage Loan Asset-Backed Certificates, Series
          2004-CB7, without recourse";

                    (iv) an original or a certified copy of any intervening
          assignment of Mortgage showing a complete chain of assignments;

                    (v) the original or a certified copy of lender's title
          insurance policy;

                    (vi) the original or copies of each assumption,
          modification, written assurance or substitution agreement, if any; and

                    (vii) for each FHA Loan, the original Mortgage Insurance
          Certificate.

          If any of the documents referred to in Section 2.02(ii), (iii) or (iv)
above has as of the Closing Date been submitted for recording but either (x) has
not been returned from the applicable public recording office or (y) has been
lost or such public recording office has retained the original of such document,
the obligations of the Seller to deliver such documents shall be deemed to be
satisfied upon (1) delivery to the Trustee or the Custodian no later than the
Closing Date, of a copy of each such document certified by the Seller in the
case of (x) above or the applicable public recording office in the case of (y)
above to be a true and complete copy of the original that was submitted for
recording and (2) if such copy is certified by the Seller, delivery to the
Trustee or the Custodian, promptly upon receipt thereof of either the original
or a copy of such document certified by the applicable public recording office
to be a true and complete copy of the original. The Seller shall deliver or
cause to be delivered to the Trustee or the Custodian promptly upon receipt
thereof any other documents constituting a part of a Mortgage File received with
respect to any Mortgage Loan, including, but not limited to, any original
documents evidencing an assumption or modification of any Mortgage Loan.

          Upon discovery or receipt of notice of any materially defective
document in, or that a document is missing from, a Mortgage File, the Seller
shall have 120 days to cure such defect or 150 days following the Closing Date,
in the case of missing Mortgages or Assignments or deliver such missing document
to the Trustee or the Custodian. If the Seller does not cure such defect or
deliver such missing document within such time period, the Seller shall either
repurchase or substitute for such Mortgage Loan in accordance with Section 3.01
hereof.

          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 Section 2.01.

                                       3
<PAGE>

          The parties hereto intend that the transaction set forth herein be a
sale by the Seller to the Purchaser of all the Seller's right, title and
interest in and to the Mortgage Loans and other property 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 all of the Seller's right,
title and interest in, to and under the Mortgage Loans and other property
described above, whether now existing or hereafter created, to secure all of the
Seller's obligations hereunder; and this Agreement shall constitute a security
agreement under applicable law. The Seller and the Purchaser shall, to the
extent consistent with this Agreement, take such actions as may be necessary to
ensure that, if this Agreement were deemed to create a security interest in the
Mortgage Loans, such security interest would be deemed to be a perfected
security interest of first priority under applicable law and will be maintained
as such throughout the term of this Agreement.

          (b) The Seller shall cause the Assignments of Mortgage which were
delivered in blank to be completed and shall cause all Assignments referred to
in Section 2.02(iii) hereof and, to the extent necessary, in Section 2.02(iv)
hereof to be recorded. The Seller shall be required to deliver such assignments
for recording within 30 days of the Closing Date. The Seller shall furnish the
Trustee, or its designated agent, with a copy of each assignment of Mortgage
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.

          In the event that any Mortgage Note is endorsed in blank as of the
Closing Date, promptly following the Closing Date the Seller shall cause to be
completed such endorsements in the following form: "Pay to the order of U.S.
Bank National Association, as Trustee--C-BASS Mortgage Loan Asset-Backed
Certificates, Series 2004-CB7, without recourse."

          Section 2.03 PAYMENT OF PURCHASE PRICE FOR THE MORTGAGE LOANS. In
consideration of the sale of the Mortgage Loans from the Seller to the Purchaser
on the Closing Date, the Purchaser agrees to pay to the Seller on the Closing
Date by transfer of immediately available funds, as directed by the Seller, an
amount equal to $453,452,154.49 in respect of the Mortgage Loans (the "PURCHASE
Price"), net of an expense reimbursement amount of $44,934.30 (the "EXPENSE
REIMBURSEMENT AMOUNT"), and to transfer to the Seller or its designee on the
Closing Date, (i) the Class B-2, Class B-3, Class B-4 and Residual Certificates
(collectively, the "Retained Certificates"). The Expense Reimbursement Amount
shall reimburse the Purchaser for the Purchaser's Securities and Exchange
Commission registration statement fees and the Purchaser's registration
statement administration fees allocable to the Trust. The Seller shall pay, and
be billed directly for, all expenses incurred by the Purchaser in connection
with the issuance of the Certificates, including, without limitation, printing
fees incurred in connection with the prospectus relating to the Certificates,
blue sky registration fees and expenses, fees and reasonable expenses of
Purchaser's counsel, fees of the rating agencies requested to rate the
Certificates, accountant's fees and expenses and the fees and expenses of the
Trustee and other out-of-pocket costs, if any. If the Purchaser shall determine
that the Expense Reimbursement

                                       4
<PAGE>

Amount is not sufficient to reimburse the Purchaser for all expenses incurred by
it that are subject to reimbursement by the Seller hereunder as described above,
the Seller shall promptly reimburse the Purchaser for such additional amounts
upon written notice by the Purchaser to the Seller.

                                  ARTICLE III

               REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH

          Section 3.01 SELLER REPRESENTATIONS AND WARRANTIES RELATING TO THE
MORTGAGE LOANS. The Seller hereby represents and warrants to the Purchaser, with
respect to the Mortgage Loans, that as of the Closing Date or as of such date
specifically provided herein:

          (a) The information set forth in the Mortgage Loan Schedule is
complete, true and correct as of the Cut-off Date.

          (b) There are no delinquent taxes, ground rents, water charges, sewer
rents, assessments, including assessments payable in future installments, or
other outstanding charges affecting the related Mortgaged Property.

          (c) The terms of the Mortgage Note and the Mortgage have not been
impaired, waived, altered or modified in any respect, except by written
instruments, recorded in the applicable public recording office if necessary to
maintain the lien priority of the Mortgage and the interests of the
Certificateholders, and which have been delivered to the Trustee; the substance
of any such waiver, alteration or modification has been approved by the title
insurer, to the extent required by the related policy, and is reflected on the
Mortgage Loan Schedule. No instrument of waiver, alteration or modification has
been executed, and no Mortgagor has been released, in whole or in part, except,
in connection with an assumption agreement approved by the title insurer, to the
extent required by the policy and, in the case of an FHA Loan, to the extent
required by the Insurance Agreement, and which assumption agreement has been
delivered to the Trustee and the terms of which are reflected in the Mortgage
Loan Schedule.

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

          (e) All buildings upon the 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 the Mortgaged Property
is located, pursuant to insurance policies conforming to the requirements of the
Pooling and Servicing Agreement. All such insurance policies contain a standard
mortgagee clause naming the Seller, its successors and

                                       5
<PAGE>

assigns as mortgagee and all premiums thereon have been paid. If upon
origination of the Mortgage Loan, the Mortgaged Property was in an area
identified on a Flood Hazard Map or Flood Insurance Rate Map issued by the
Federal Emergency Management Agency as having special flood hazards (and such
flood insurance has been made available) a flood insurance policy meeting the
requirements of the current guidelines of the Federal Insurance Administration
is in effect which policy conforms to the requirements of the Federal National
Mortgage Association ("FNMA") and the Federal Home Loan Mortgage Corporation
("FHLMC"). The Mortgage obligates the Mortgagor thereunder to maintain all such
insurance at the Mortgagor's cost and expense, and on the Mortgagor's failure to
do so, authorizes the holder of the Mortgage to maintain such insurance at the
Mortgagor's cost and expense and to seek reimbursement therefor from the
Mortgagor. All acts required to be performed to preserve the rights and remedies
of the Trustee in any such insurance policies have been performed, including,
without limitation, any necessary notifications of insurers and assignments of
policies or interests therein.

          (f) As of the date of origination of the Mortgage Loan, any and all
requirements of any federal, state or local law, including, without limitation,
usury, truth in lending, real estate settlement procedures, consumer credit
protection, equal credit opportunity or disclosure laws applicable to the
origination of the Mortgage Loans have been complied with. Any and all
requirements of any federal, state or local law, including, without limitation,
usury, truth in lending, real estate settlement procedures, consumer credit
protection, equal credit opportunity or disclosure laws applicable to the
servicing of the Mortgage Loans have been complied with.

          (g) The Mortgage has not been satisfied, canceled, subordinated (other
than with respect to second lien loans, the subordination to the first lien
loan) rescinded, in whole or in part, and the Mortgaged Property has not been
released from the lien of the Mortgage, in whole or in part, nor has any
instrument been executed that would effect any such satisfaction, cancellation,
subordination, rescission or release.

          (h) The Mortgage is a valid, existing and enforceable first or second
lien on the Mortgaged Property, including all improvements on the Mortgaged
Property subject only to (1) the lien of current real property taxes and
assessments not yet due and payable, (2) covenants, conditions and restrictions,
rights of way, easements and other matters of the public record as of the date
of recording being acceptable to mortgage lending institutions generally and, in
the case of FHA Loans, to the FHA, and specifically referred to in the lender's
title insurance policy delivered to the originator of the Mortgage Loan, (3)
other matters to which like properties are commonly subject which do not
materially interfere with the benefits of the security intended to be provided
by the Mortgage or the use, enjoyment, value or marketability of the related
Mortgaged Property and which may not in any way prevent realization of the
benefits of the related Insurance Agreement, if applicable and (4) with respect
to any second lien mortgage loan, the lien of the related first mortgage loan.
Any security agreement, chattel mortgage or equivalent document related to and
delivered in connection with the Mortgage Loan establishes and creates a valid,
existing and enforceable first or second lien and first or second priority

                                       6
<PAGE>

security interest on the property described therein and the Seller has full
right to sell and assign the same to the Purchaser.

          (i) The Mortgage Note and the related Mortgage are genuine and each is
the legal, valid and binding obligation of the maker thereof, enforceable in
accordance with its terms.

          (j) The proceeds of the Mortgage Loan have been fully disbursed to or
for the account of the Mortgagor and there is no obligation for the mortgagee to
advance additional funds thereunder and any and all requirements as to
completion of any on-site or off-site improvement and as to disbursements of any
escrow funds therefor have been complied with. All costs, fees and expenses
incurred in making or closing the Mortgage Loan and the recording of the
Mortgage have been paid, and the Mortgagor is not entitled to any refund of any
amounts paid or due to the mortgagee pursuant to the Mortgage Note or Mortgage.

          (k) Immediately prior to the transfer and assignment contemplated
herein, the Seller was the sole owner and holder of the Mortgage Loans and has
good and marketable title to each Mortgage Loan, free and clear of any and all
liens, pledges, charges, claims, participation interests, mortgages, security
interests or encumbrances or other interests of any nature and has full right
and authority to sell and assign the same.

          (l) Each Mortgage Loan is covered by an ALTA mortgagee title insurance
policy acceptable to FNMA or FHLMC, issued by a title insurer acceptable to (1)
FNMA and FHLMC, in the case of a conventional Mortgage Loan and (2) the FHA, in
the case of an FHA Loan, and qualified to do business in the jurisdiction where
the Mortgaged Property is located, insuring (subject to the exceptions contained
in (h)(1) and (2) above) the Seller, its successors and assigns as to the first
or second priority lien of the Mortgage in the original principal amount of the
Mortgage Loan and against any loss by reason of the invalidity or
unenforceability of the lien resulting from the provisions of the Mortgage
providing for adjustment in the mortgage interest rate and/or monthly payment
including any negative amortization thereunder. Additionally, such mortgagee
title insurance policy affirmatively insures ingress and egress to and from the
Mortgaged Property, and against encroachments by or upon the Mortgaged Property
or any interest therein. The Seller is the sole insured of such mortgagee title
insurance policy, and such lender's title insurance policy is in full force and
effect and will be in full force and effect upon the consummation of the
transactions contemplated by this Agreement. No claims have been made under such
mortgagee title insurance policy, and no prior holder of the related Mortgage,
including the Seller, has done, by act or omission, anything which would impair
the coverage of such mortgagee title insurance policy.

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

                                       7
<PAGE>

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

          (o) The Mortgage and related Mortgage Note contain customary and
enforceable provisions such as to render the rights and remedies of the holder
thereof adequate for the realization against the Mortgaged Property of the
benefits of the security provided thereby, including, (1) in the case of a
Mortgage designated as a deed of trust, by trustee's sale, and (2) otherwise by
judicial foreclosure. There is no homestead or other exemption available to the
Mortgagor which would interfere with the right to sell the Mortgaged Property at
a trustee's sale or the right to foreclose the Mortgage. The Mortgagor has not
notified the Seller and the Seller has no knowledge of any relief requested or
allowed to the Mortgagor under the Servicemembers Civil Relief Act of 1940, as
amended.

          (p) The Mortgage Note is not and has not been secured by any
collateral except the lien of the corresponding Mortgage on the Mortgaged
Property and the security interest of any applicable security agreement or
chattel mortgage.

          (q) 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.

          (r) No Mortgage Loan contains provisions pursuant to which monthly
payments are (1) paid or partially paid with funds deposited in any separate
account established by the Seller, the Mortgagor, or anyone on behalf of the
Mortgagor, (2) paid by any source other than the Mortgagor or (3) contains any
other similar provisions which may constitute a "buydown" provision. The
Mortgage Loan is not a graduated payment mortgage loan and the Mortgage Loan
does not have a shared appreciation or other contingent interest feature.

          (s) The Mortgage Note, the Mortgage, the Assignment and any other
documents required to be delivered with respect to each Mortgage Loan pursuant
to Section 2.02 hereof have been delivered to the Purchaser or its designee, all
in compliance with the specific requirements of Section 2.02 hereof.

          (t) If the residential dwelling on the Mortgaged Property is a
condominium unit or a unit in a planned unit development (other than a de
minimis planned unit development) such condominium or planned unit development
project meets FNMA's eligibility requirements.

          (u) None of the Mortgage Loans are secured by a leasehold estate or
constitute other than real property under applicable state law.

                                       8
<PAGE>

          (v) The rights with respect to each Mortgage Loan are assignable by
the Seller without the consent of any Person other than consents which will have
been obtained on or before the Closing Date.

          (w) The Mortgage Loans are not being transferred by the Seller with
any intent to hinder, delay or defraud any creditors of the Seller.

          (x) All parties which have had any interest in each Mortgage Loan,
whether as mortgagee, assignee, pledgee or otherwise, and including, without
limitation, the Seller, are (or during the period in which they held and
disposed such interest, were) in compliance with any and all applicable
licensing requirements of the laws of the state wherein the property securing
the Mortgage is located to the extent that any noncompliance thereunder would
affect the value or marketability of the Mortgage Loans.

          (y) To the best of Seller's knowledge, the Mortgaged Property is free
from any and all toxic or hazardous substances and there exists no violation of
any local, state or federal environmental law, rule or regulation.

          (z) The Mortgaged Property is free from material damage.

          (aa) Each Mortgage Loan has been serviced by the Servicer in
accordance with the terms thereof and Applicable Regulations.

          (bb) [Reserved]

          (cc) [Reserved]

          (dd) There is no proceeding pending for the total or partial
condemnation and no eminent domain proceedings pending affecting any Mortgaged
Property.

          (ee) There was no fraud involved in the origination of any Mortgage
Loan by the applicable mortgagee or Mortgagor, and to the best of the Seller's
knowledge, there was no fraud by the appraiser or any other party involved in
the origination of any such Mortgage Loan.

          (ff) Each mortgage file contains an appraisal of or a broker's price
opinion regarding the related Mortgaged Property indicating an appraised value
equal to the appraised value identified for such Mortgaged Property on the
Mortgage Loan Schedule. Each appraisal has been prepared on FNMA or FHLMC forms.

          (gg) No improvements on any Mortgaged Property encroach on adjoining
properties (and in the case of a condominium unit, such improvements are within
the project with respect to that unit), and no improvements on adjoining
properties encroach upon such Mortgaged Property unless there exists in the
applicable Mortgage File a title policy with endorsements which insure against
losses sustained by the insured as a result of such encroachments.

                                       9
<PAGE>

          (hh) Each Insurance Agreement is in full force and effect and will be
in full force and effect upon the consummation of the transactions contemplated
by this Agreement.

          (ii) With respect to escrow deposits, if any, all such payments are in
the possession of, or under the control of, the Servicer and there exists no
deficiencies in connection therewith for which customary arrangements for
repayment thereof have not been made. No escrow deposits or escrow advances or
other charges or payments due the Servicer have been capitalized under any
Mortgage or the related Note.

          (jj) No Mortgage Loan, other than a Bankruptcy Plan Mortgage Loan, is
subject to any pending bankruptcy or insolvency proceeding. To the Seller's best
knowledge, no material litigation or lawsuit relating to any Mortgage Loan is
pending.

          (kk) The Seller used no selection procedures that identified the
Mortgage Loans as being less desirable or valuable than other comparable
mortgage loans acquired by the Seller.

          (ll) The sale, transfer, assignment and conveyance of Mortgage Loans
by the Seller pursuant to this Agreement will not result in any tax, fee or
governmental charge (other than income taxes and related taxes) payable by the
Seller, the Depositor or the Trustee to any federal, state or local government
other than taxes which have or will be paid by the Seller as due ("TRANSFER
TAXES"). In the event that the Depositor or the Trustee receives actual notice
of any Transfer Taxes arising out of the transfer, assignment and conveyance of
the Mortgage Loans, other than any taxes to be paid by the creditor, on written
demand by the Depositor, or the Trustee, or upon the Seller's otherwise being
given notice thereof by the Depositor or the Trustee, the Seller shall pay, and
otherwise indemnify and hold the Depositor and the Trustee harmless, on an
after-tax basis, from and against any and all such Transfer Taxes (it being
understood that the Certificateholders, the Trustee and the Depositor shall have
no obligation to pay such Transfer Taxes).

          (mm) With respect to each Mortgage Loan that is a "mortgage" as such
term is defined in 15 U.S.C. 1602(aa), no obligor has or will have a claim or
defense under such Mortgage Loan as a result of a violation of the Home
Ownership and Equity Protection Act of 1994.

          (nn) With respect to the Mortgage Loans, the Mortgaged Properties
securing repayment of the related Mortgage Note, consists of a fee simple
interest in a single parcel or two contiguous parcels of real property (i)
improved by a (A) detached or semi-detached one-family dwelling, (B) detached or
semi-detached two-to four family dwelling, (C) one-family unit in a FNMA
eligible condominium project, (D) detached or semi-detached one-family dwelling
in a planned unit development, (E) multi-family dwelling or townhouse or (F)
mobile home or manufactured dwelling which constitutes real property or (ii)
unimproved by any residential dwelling.

                                       10
<PAGE>

          (oo) Except for the Mortgage Loans identified on the Mortgage Loan
Schedule as delinquent, there is no default, breach, violation or event of
acceleration existing under the Mortgage or the Mortgage Note and no event
which, with the passage of time or with notice and the expiration of any grace
or cure period, would constitute a default, breach, violation or event of
acceleration, and the Seller has not waived any default, breach, violation or
event of acceleration except, in the case of an FHA Loan, by written
instruments, and the substance of which waiver has been approved by the FHA to
the extent required by the applicable Insurance Agreement.

          (pp) The Seller has no actual knowledge that with respect to any
Mortgage Loan (1) the Servicer has sent a notice of default to the related
Mortgagor which the Servicer is currently seeking to enforce, or (2) any
foreclosure proceedings have been commenced or acceleration been declared which
is currently pending. The Seller is not transferring any Mortgage Loan to the
Purchaser with the intention or knowledge that the Purchaser or the Trust will
acquire the related Mortgaged Property.

          (qq) With respect to any Mortgage Loan that is secured by a second
lien on the related Mortgaged Property, either (i) no consent for the Mortgage
Loan is required by the holder of any related senior lien or (ii) such consent
has been obtained and is contained in the Mortgage File.

          (rr) In any case in which a Mortgage Loan is secured by a second lien
and a senior lien on the related Mortgaged Property provides for negative
amortization or deferred interest, the balance of such senior lien on the
related Mortgaged Property used to calculate the Combined Loan to Value Ratio
for the Mortgage Loan is based on the maximum amount of negative amortization
possible under such senior loan.

          (ss) With respect to a Mortgage Loan which is a second lien, as of the
date hereof, the Seller has not received a notice of default of a senior lien on
the related Mortgaged Property which has not been cured.

          (tt) No Mortgage Loan is delinquent (other than Mortgage Loans subject
to a bankruptcy plan or forbearance plan). The Seller has not waived any
default, breach, violation or event of acceleration, and the Seller has not
taken any action to waive any default, breach, violation or event of
acceleration, with respect to any Mortgage Loan.

          (uu) Each Mortgage Loan is a "qualified Mortgage" within the meaning
of Section 860 G(a)(3) of the Code.

          (vv) With respect to any Adjustable-Rate Mortgage Loan, all rate
adjustments have been performed in accordance with the terms of the related
Mortgage Note or subsequent modifications, if any.

          (ww) At the time of their origination, all FHA Loans conformed to HUD
origination guidelines.

                                       11
<PAGE>

          (xx) Each Mortgage Loan is directly secured by a Mortgage on a
residential property, and either (1) substantially all of the proceeds of the
Mortgage Loan were used to acquire, improve or protect the portion of the
residential property that consists of an interest in real property (within the
meaning of Treasury Regulations Sections 1.856-3(c) and 1.856-3(d)) and the
interest in real property was the only security for the Mortgage Loan as of the
Testing Date (as defined below), or (2) the fair market value of the interest in
real property which secures the Mortgage Loan was at least equal to 80% of the
principal amount of the Mortgage Loan (a) as of the Testing Date, or (b) as of
the Closing Date. For purposes of the previous sentence, (1) the fair market
value of the referenced interest in real property shall first be reduced by (a)
the amount of any lien on the interest in real property that is senior to the
Mortgage Loan, unless the Mortgage Loan includes both a first lien loan and a
second lien loan on the same Mortgaged Property, in which case the 80% test
shall be applied in the aggregate, and (b) a proportionate amount of any lien on
the interest in real property that is on a parity with the Mortgage Loan, and
(2) the "TESTING DATE" shall be the date on which the referenced Mortgage Loan
was originated unless (a) the Mortgage Loan was modified after the date of its
origination in a manner that would cause "significant modification" of the
Mortgage Loan within the meaning of Treasury Regulations Section 1.1001-3, and
(b) the "significant modification" did not occur at a time when the Mortgage
Loan was in default or when default with respect to the Mortgage Loan was
reasonably foreseeable.

          (yy) With respect to each Mortgage Loan that is a mobile or
manufactured housing unit, such unit is a "single family residence" within the
meaning of Section 25(e)(1) of the Code, and has a minimum of 400 square feet of
living space, a minimum width of 102 inches and is of a kind customarily used at
a fixed location.

          (zz) Any written agreement between the Mortgagor in respect of a
Mortgage Loan and the Servicer modifying such Mortgagor's obligation to make
payments under the Mortgage Loan (such modified Mortgage Loan, a "Modified
Mortgage Loan") involved some assessment of the Mortgagor's ability to repay the
Modified Mortgage Loan.

          (aaa) No Mortgage Loan is covered by the Home Ownership and Equity
Protection Act of 1994 ("HOEPA") and no Mortgage Loan is in violation of any
state law or ordinance similar to HOEPA.

          (bbb) No proceeds from any Mortgage Loan were used to finance
single-premium credit insurance policies.

          (ccc) No Mortgage Loan originated on or after October 1, 2002 will
impose a Prepayment Charge for a term in excess of three years. Any Mortgage
Loan originated prior to such date will not impose a Prepayment Charge in excess
of five years.

          (ddd) The Servicer has fully furnished and will continue to fully
furnish, in accordance with the Fair Credit Reporting Act and its implementing
regulations, accurate and complete information (e.g., favorable and unfavorable)
on its borrower credit files to Equifax,

                                       12
<PAGE>

Experian and Trans Union Credit Information Company (three of the credit
repositories), on a monthly basis.

          (eee) There is no Mortgage Loan in the Trust Fund that was originated
on or after October 1, 2002 and before March 7, 2003, which is secured by
property located in the State of Georgia.

          (fff) There is no Mortgage Loan in the Trust Fund that was originated
on or after March 7, 2003, which is a "high cost home loan" as defined under the
Georgia Fair Lending Act.

          (ggg) (a) No Mortgage Loan is classified as a high cost mortgage loan
under HOEPA; and (b) no Mortgage Loan in the Trust Fund is a "high cost home,"
"covered" (excluding home loans defined as "covered home loans" pursuant to
clause (1) of the definition of that term in the New Jersey Home Ownership
Security Act of 2002), "high risk home" or "predatory" loan under any other
applicable state, federal or local law (or a similarly classified loan using
different terminology under a law imposing heightened regulatory scrutiny or
additional legal liability for residential mortgage loans having high interest
rates, points and/or fees).

          (hhh) None of the Mortgage Loans are High Cost as defined by the
applicable predatory and abusive lending laws or any federal, state or local
law.

          (iii) No Mortgage Loans are subject to the Georgia Fair Lending act
("GFLA") effective from October 1, 2002 to March 6, 2003.

          (jjj) The Prepayment Charges included in the transaction are
enforceable and were originated in compliance with all federal, state and local
laws.

          (kkk) All Mortgage Loans were originated in compliance with all
applicable laws, including, but not limited to all applicable anti-predatory
lending laws.

          (lll) Information provided to the rating agencies, including the loan
level detail, is true and correct according to the rating agency requirements.

          (mmm) No Mortgage Loan is a High Cost Loan or a Covered Loan, as
applicable, as such terms are defined in Appendix E of the Standard & Poor's
Glossary For File Format For LEVELS(R) Version 5.6 Revised (attached hereto as
Exhibit 1), with the exception of any Mortgage Loan secured by property located
in the states of Kansas or West Virginia.

          With respect to the representations and warranties set forth in this
Section 3.01 that are made to the best of the Seller's knowledge or as to which
the Seller has no knowledge, if it is discovered by the Depositor, the Seller,
the Servicer or the Trustee, as set forth in Section 2.04 of the Pooling and
Servicing Agreement, that the substance of such representation and warranty is
inaccurate and such inaccuracy materially and adversely affects the value of the
related Mortgage Loan or the interest therein of the Purchaser or the
Purchaser's assignee, transferee or designee for the benefit of the
Certificateholders then, notwithstanding the Seller's lack of knowledge with
respect to the substance of such representation and warranty being inaccurate at
the time the representation or warranty was made, such inaccuracy shall be
deemed a breach of the applicable representation or warranty.

          Upon discovery by the Depositor, the Seller, the Servicer, the
Purchaser or any assignee, transferee or designee of the Purchaser of a breach
of any of the representations and warranties contained in this Article III or
Section 2.04 of the Pooling and Servicing Agreement that materially and
adversely affects the value of any Mortgage Loan or the interest therein of the
Purchaser or the Purchaser's assignee, transferee or designee for the benefit of
the Certificateholders, the party discovering the breach shall give prompt
written notice to the others and in no event later than two Business Days from
the date of such discovery. It is understood by the parties hereto that a breach
of the representations and warranties made in this Section 3.01(aaa), (bbb),
(ccc), (ddd), (eee), (fff) and (ggg) will be deemed to materially and adversely
affect the value of the related

                                       13
<PAGE>

Mortgage Loan or the interest therein of the Purchaser or the Purchaser's
assignee. Within 90 days of the earlier of its discovery or its receipt of
notice of any such breach of a representation or warranty, the Seller shall
promptly cure such breach in all material respects, or in the event such defect
or breach cannot be cured, the Seller shall repurchase the affected Mortgage
Loan or cause the removal of such Mortgage Loan from the Trust Fund and
substitute for it one or more Eligible Substitute Mortgage Loans, in either
case, in accordance with Section 2.03 of the Pooling and Servicing Agreement.

          Upon discovery or receipt of written notice by the Seller of any
materially defective document in, or that a document is missing from, a Mortgage
File, the Seller shall have 120 days to cure such defect or 150 days following
the Closing Date, in the case of missing Mortgages or Assignments (or within 90
days of the earlier of the Seller's discovery or receipt of notification if such
defect would cause the Mortgage Loan not to be a "qualified mortgage" for REMIC
purposes), or in the event such defect cannot be cured, the Seller shall
repurchase the affected Mortgage Loan or cause the removal of such Mortgage Loan
from the Trust Fund and substitute for it one or more Eligible Substitute
Mortgage Loans, in either case, within such time periods and in accordance with
Section 2.03 of the Pooling and Servicing Agreement.

          It is understood and agreed that the representations and warranties
set forth in this Section 3.01 shall survive delivery of the respective Mortgage
Files to the Trustee or its agent, on behalf of the Purchaser and shall inure to
the benefit of the Certificateholders notwithstanding any restrictive or
qualified endorsement or assignment.

          It is understood and agreed that the obligations of the Seller set
forth in this Section 3.01 to cure, repurchase or substitute for a defective
Mortgage Loan constitute the sole remedies of the Purchaser, the
Certificateholders or the Trustee on their behalf respecting a missing or
defective document or a breach of the representations or warranties contained in
this Section 3.01.

                                       14
<PAGE>

          Section 3.02 SELLER REPRESENTATIONS AND WARRANTIES. The Seller hereby
represents and warrants to the Purchaser that as of the Closing Date or as of
such date specifically provided herein:

          (i) The Seller is duly organized, validly existing and in good
standing as a limited liability company under the laws of the State of Delaware
and has the power and authority to own its assets and to transact the business
in which it is currently engaged. The Seller is duly qualified to do business
and is in good standing in each jurisdiction in which the character of the
business transacted by it or properties owned or leased by it requires such
qualification and in which the failure to so qualify would have a material
adverse effect on (a) its business, properties, assets or condition (financial
or other), (b) the performance of its obligations under this Agreement, (c) the
value or marketability of the Mortgage Loans, or (d) its ability to foreclose on
the related Mortgaged Properties.

          (ii) The Seller has the power and authority to make, execute, deliver
and perform this Agreement and to consummate all of the transactions
contemplated hereunder and has taken all necessary action to authorize the
execution, delivery and performance of this Agreement. When executed and
delivered, this Agreement will constitute the Seller's legal, valid and binding
obligations enforceable in accordance with its terms, except as enforcement of
such terms may be limited by (1) bankruptcy, insolvency, reorganization,
receivership, moratorium or similar laws affecting the enforcement of creditors'
rights generally and by the availability of equitable remedies, (2) general
equity principals (regardless of whether such enforcement is considered in a
proceeding in equity or at law) or (3) public policy considerations underlying
the securities laws, to the extent that such policy considerations limit the
enforceability of the provisions of this Agreement which purport to provide
indemnification from securities laws liabilities.

          (iii) The Seller holds all necessary licenses, certificates and
permits from all governmental authorities necessary for conducting its business
as it is presently conducted, except for such licenses, certificates and permits
the absence of which, individually or in the aggregate, would not have a
material adverse effect on the ability of the Seller to conduct its business as
it is presently conducted. It is not required to obtain the consent of any other
party or any consent, license, approval or authorization from, or registration
or declaration with, any governmental authority, bureau or agency in connection
with the execution, delivery, performance, validity or enforceability of this
Agreement, except for such consents, licenses, approvals or authorizations, or
registrations or declarations as shall have been obtained or filed, as the case
may be, prior to the Closing Date.

          (iv) The execution, delivery and performance of this Agreement by the
Seller will not conflict with or result in a breach of, or constitute a default
under, any provision of any existing law or regulation or any order or decree of
any court applicable to the Seller or any of its properties or any provision of
its Limited Liability Company Agreement, or constitute a material breach of, or
result in the creation or imposition of any lien, charge or encumbrance upon any
of

                                       15
<PAGE>

its properties pursuant to any mortgage, indenture, contract or other agreement
to which it is a party or by which it may be bound.

          (v) No certificate of an officer, written statement or report
delivered pursuant to the terms hereof by the Seller contains any untrue
statement of a material fact or omits to state any material fact necessary to
make the certificate, statement or report not misleading.

          (vi) The transactions contemplated by this Agreement are in the
ordinary course of the Seller's business.

          (vii) The Seller is not insolvent, nor will the Seller be made
insolvent by the transfer of the Mortgage Loans, nor is the Seller aware of any
pending insolvency.

          (viii) The Seller is not in violation of, and the execution and
delivery of this Agreement by it and its performance and compliance with the
terms of this Agreement will not constitute a violation with respect to any
order or decree of any court, or any order or regulation of any federal, state,
municipal or governmental agency having jurisdiction, which violation would
materially and adversely affect the Seller's condition (financial or otherwise)
or operations or any of the Seller's properties, or materially and adversely
affect the performance of any of its duties hereunder.

          (ix) There are no actions or proceedings against, or investigations
of, the Seller pending or, to its knowledge, threatened, before any court,
administrative agency or other tribunal (i) that, if determined adversely, would
prohibit the Seller from entering into this Agreement and the Pooling and
Servicing Agreement, (ii) seeking to prevent the consummation of any of the
transactions contemplated by this Agreement or (iii) that, if determined
adversely, would prohibit or materially and adversely affect the Seller's
performance of any of its respective obligations under, or the validity or
enforceability of, this Agreement and the Pooling and Servicing Agreement.

          (x) The Seller is not transferring the Mortgage Loans to the Purchaser
hereunder with any intent to hinder, delay or defraud any of its creditors.

          (xi) The Seller acquired title to the Mortgage Loans in good faith,
without notice of any adverse claims.

          (xii) The transfer, assignment and conveyance of the Mortgage Notes
and the Mortgages by the Seller pursuant to this Agreement are not subject to
the bulk transfer laws or any similar statutory provisions in effect in any
applicable jurisdiction.

          (xiii) The Seller understands that (a) the Retained Certificates have
not been and will not be registered or qualified under the Securities Act of
1933, as amended (the "SECURITIES ACT") or any state securities law, (b) the
Purchaser is not required to so register or qualify the Retained Certificates,
(c) the Retained 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

                                       16
<PAGE>

registration and qualification is available, (d) the Pooling and Servicing
Agreement contains restrictions regarding the transfer of the Retained
Certificates and (e) the Retained Certificates will bear a legend to the
foregoing effect.

          (xiv) The Seller is acquiring the Retained 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 Securities
Act or any applicable state securities laws.

          (xv) The Seller 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
Retained Certificates, such that it is capable of evaluating the merits and
risks of investment in the Retained 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 Securities Act.

          (xvi) The Seller has been furnished with such information concerning
the Retained Certificates and the Purchaser as has been requested by the Seller
from the Purchaser and is relevant to the Seller's decision to purchase the
Retained Certificates. The Seller has had any questions arising from such review
answered by the Purchaser to the satisfaction of the Seller.

          (xvii) The Seller 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 Retained Certificate, any interest in any Retained 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 Retained
Certificate, any interest in any Retained Certificate or any other similar
security from any person in any manner, (c) otherwise approach or negotiate with
respect to any Retained Certificate, any interest in any Retained 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 Retained Certificate under the Securities Act, that would
render the disposition of any Retained Certificate a violation of Section 5 of
the Securities Act or any state securities law, or that would require
registration or qualification pursuant thereto. The Seller will not sell or
otherwise transfer any of the Retained Certificates, except in compliance with
the provisions of the Pooling and Servicing Agreement.

          (xviii) The Seller is not an employee benefit plan or other retirement
arrangement subject to the Employee Retirement Income Security Act of 1974, as
amended ("ERISA"), or Section 4975 of the Internal Revenue Code of 1986, as
amended (the "Code"), (collectively, an "ERISA Plan"), and is not acting on
behalf of, as named fiduciary of, as trustee of, or investing the assets of an
ERISA Plan.

                                       17
<PAGE>

                                   ARTICLE IV

                               SELLER'S COVENANTS

                      Section 4.01 COVENANTS OF THE SELLER.

          (a) The Seller hereby covenants that except for the transfer
hereunder, the Seller will not sell, pledge, assign or transfer to any other
Person, or grant, create, incur, assume or suffer to exist any lien on any
Mortgage Loan, or any interest therein; the Seller will notify the Trustee, as
assignee of the Purchaser, of the existence of any lien on any Mortgage Loan
immediately upon discovery thereof, and the Seller will defend the right, title
and interest of the Trust, as assignee of the Purchaser, in, to and under the
Mortgage Loans, against all claims of third parties claiming through or under
the Seller; PROVIDED, HOWEVER, that nothing in this Section 4.01 shall prevent
or be deemed to prohibit the Seller from suffering to exist upon any of the
Mortgage Loans any liens for municipal or other local taxes and other
governmental charges if such taxes or governmental charges shall not at the time
be due and payable or if the Seller shall currently be contesting the validity
thereof in good faith by appropriate proceedings and shall have set aside on its
books adequate reserves with respect thereto.

          (b) The Seller hereby covenants that neither it nor any affiliate of
the Seller will directly solicit any Mortgagor hereunder to refinance the
related Mortgage Loan. For the purposes of the foregoing, neither the Seller nor
any affiliate of the Seller shall be deemed to directly solicit any Mortgagor if
the Seller responds to a request from a Mortgagor regarding a refinancing or if
the Mortgagor receives marketing materials which are generally disseminated.

                                   ARTICLE V

                  OPTIONAL PURCHASE OF DEFAULTED MORTGAGE LOANS

          (a) In accordance with the terms of Section 3.16 of the Pooling and
Servicing Agreement, as to any Mortgage Loan which is Delinquent in payment by
120 days or more or any REO Property, an Affiliate of the Seller may, at its
option, purchase such Mortgage Loan from the Trust Fund at the Purchase Price
for such Mortgage Loan provided that an Affiliate of the Seller may exercise the
purchase right during the period commencing on the first day of the calendar
quarter succeeding the calendar quarter in which the Initial Delinquency Date
occurred and ending on the last Business Day of such calendar quarter. The
"Initial Delinquency Date" of a Mortgage Loan shall mean the date on which the
Mortgage Loan first became 120 days Delinquent.

          (b) If an Affiliate of the Seller does not exercise the purchase right
with respect to a Mortgage Loan during the period specified in the preceding
paragraph, such Mortgage Loan shall thereafter again become eligible for
purchase pursuant to the preceding paragraph only after the Mortgage Loan ceases
to be 120 days or more Delinquent and thereafter becomes 120 day Delinquent
again.

                                       18
<PAGE>

                                   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 as provided in Section 8.01 of the Trust
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:

                  if to the Seller:

                  Credit-Based Asset Servicing and Securitization LLC
                  335 Madison Avenue
                  19th Floor
                  New York, New York  10017
                  Attention:  General Counsel

or such other address as may hereafter be furnished to the Purchaser in writing
by the Seller.

                  if to the Purchaser:

                  Citigroup Mortgage Loan Trust Inc.
                  390 Greenwich Street
                  New York, New York 10013
                  Attention: Mortgage Finance Group

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

                                       19
<PAGE>

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 COUNTERPARTS. This Agreement may be executed in one or
more counterparts 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 7.06 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 reasonable and appropriate to effectuate
the purposes of this Agreement or in connection with the issuance of any Series
of Certificates representing interests in the Mortgage Loans.

          Without limiting the generality of the foregoing, as a further
inducement for the Purchaser to purchase the Mortgage Loans from the Seller, the
Seller will cooperate with the Purchaser in connection with the sale of any of
the securities representing interests in the Mortgage Loans. In that connection,
the Seller will provide to the Purchaser any and all information and appropriate
verification of information, whether through letters of its auditors and counsel
or otherwise, as the Purchaser shall reasonably request and will provide to the
Purchaser such additional representations and warranties, covenants, opinions of
counsel, letters from auditors, and certificates of public officials or officers
of the Seller as are reasonably required in connection with such transactions
and the offering of investment grade securities rated by the Rating Agencies.

          Section 7.07 INTENTION OF THE PARTIES. It is the intention of the
parties that the Purchaser is purchasing, and the Seller is selling, the
Mortgage Loans rather than the pledging of the Mortgage Loans by the Seller to
secure a loan by the Purchaser to the Seller. Accordingly, the parties hereto
each intend to treat the transaction for Federal income tax purposes and all
other purposes as a sale by the Seller and a purchase by the Purchaser of the
Mortgage Loans. The Purchaser will have the right to review the Mortgage Loans
and the related Mortgage Files to determine the characteristics of the Mortgage
Loans which will affect the Federal income tax 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 7.08 SUCCESSORS AND ASSIGNS; ASSIGNMENT OF THIS AGREEMENT.
This Agreement shall bind and inure to the benefit of and be enforceable by the
Seller, the Purchaser and the Trustee. The obligations of the Seller under this
Agreement cannot be assigned or delegated to a third party without the consent
of the Purchaser and which consent shall be at the Purchaser's sole discretion,
except that the Purchaser acknowledges and agrees that the Seller may assign its
obligations hereunder to any Person into which the Seller is merged or any
corporation resulting from any merger, conversion or consolidation to which the
Seller is a party or any Person succeeding to the business of the Seller. The
parties hereto acknowledge that the Purchaser is acquiring the Mortgage Loans
for the purpose of contributing them to a trust that

                                       20
<PAGE>

will issue a series of certificates representing undivided interests in such
Mortgage Loans. 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 of all of the Purchaser's rights against the Seller pursuant to
this Agreement insofar as such rights relate to Mortgage Loans transferred to
the Trustee and to the enforcement or exercise of any right or remedy against
the Seller pursuant to this Agreement by the Trustee. Such enforcement of a
right or remedy by the Trustee shall have the same force and effect as if the
right or remedy had been enforced or exercised by the Purchaser directly.

          Section 7.09 SURVIVAL. The representations and warranties set forth in
Sections 3.01 and 3.02 hereof shall survive the purchase of the Mortgage Loans
hereunder.

                                       21
<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.

                                        CITIGROUP MORTGAGE LOAN TRUST
                                        INC.,
                                        as Purchaser

                                        By:____________________________________
                                        Name:
                                        Title:

                                        CREDIT-BASED ASSET SERVICING
                                        AND SECURITIZATION LLC, as Seller

                                        By:____________________________________
                                        Name:
                                        Title:

                                       22
<PAGE>

                                   SCHEDULE I

                             MORTGAGE LOAN SCHEDULE

<PAGE>

                                    EXHIBIT 1

<PAGE>

                                    EXHIBIT H

                           FORM OF LOST NOTE AFFIDAVIT

          Personally appeared before me the undersigned authority to administer
oaths, ______________________ who first being duly sworn deposes and says:
Deponent is ______________________ of ______________________________, successor
by merger to _________________________________________ ("Seller") and who has
personal knowledge of the facts set out in this affidavit.

          On ___________________, _________________________ did execute and
deliver a promissory note in the principal amount of $__________.

          That said note has been misplaced or lost through causes unknown and
is presently lost and unavailable after diligent search has been made. Seller's
records show that an amount of principal and interest on said note is still
presently outstanding, due, and unpaid, and Seller is still owner and holder in
due course of said lost note.

          Seller executes this Affidavit for the purpose of inducing U.S. Bank
National Association, as trustee on behalf of C-BASS Mortgage Loan Asset-Backed
Certificates, Series 2004-CB7, to accept the transfer of the above described
loan from Seller.

          Seller agrees to indemnify and hold harmless U.S. Bank National
Association, Citigroup Mortgage Loan Trust Inc., Citigroup Global Markets Inc.
and Greenwich Capital Markets, Inc. for any losses incurred by such parties
resulting from the above described promissory note has been lost or misplaced.

                                                  By:
                                                  Name:
                                                  Title:

                                      H-1
<PAGE>

STATE OF                   )
                           )        SS:
COUNTY OF                  )

          On this ____ day of _______ 20__, before me, a Notary Public, in and
for said County and State, appeared ________________________, who acknowledged
the extension of the foregoing and who, having been duly sworn, states that any
representations therein contained are true.

          Witness my hand and Notarial Seal this ____ day of _______ 20__.

          My commission expires .

                                      H-2
<PAGE>

                                    EXHIBIT I

                          FORM OF ERISA REPRESENTATION

U.S. Bank National Association
60 Livingston Avenue
EP-MN-WS3D
St. Paul, Minnesota 55107-2292

Citigroup Mortgage Loan Trust Inc.
390 Greenwich Street
New York, New York 10013

          Re:       C-BASS Mortgage Loan Asset-Backed Certificates, Series
                    2004-CB7

Ladies and Gentlemen:

          1. [The undersigned is the ______________________ of (the
"Transferee") a [corporation duly organized] and existing under the laws of
__________, on behalf of which he makes this affidavit.] [The undersigned,
___________________, is the transferee (the "Transferee").]

          2. The Transferee hereby acknowledges that under the terms of the
Pooling and Servicing Agreement (the "Agreement") among Citigroup Mortgage Loan
Trust Inc., as depositor (the "Depositor"), Credit-Based Asset Servicing and
Securitization LLC, as seller, Litton Loan Servicing LP, as servicer and U.S.
Bank National Association, as trustee (the "Trustee"), no transfer of the
ERISA-Restricted Certificates shall be permitted to be made to any person unless
the Depositor and the Certificate Registrar (as defined in the Agreement) have
received a certificate from such transferee in the form hereof.

          3. The Transferee either (x) (i) is not an employee benefit plan
subject to Section 406 or Section 407 of the Employee Retirement Income Security
Act of 1974, as amended ("ERISA"), or Section 4975 of the Internal Revenue Code
of 1986, as amended (the "Code"), the Trustee of any such plan or a person
acting on behalf of any such plan nor a person using the assets of any such plan
or (ii) (except in the case of the Residual, Class X or Class N Certificates) is
an insurance company which is purchasing such Certificates with funds contained
in an "insurance company general account" (as such term is defined in Section
V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60") and that the
purchase and holding of such Certificates are covered under Sections I and III
of PTCE 95-60 or (y) (except in the case of a Mezzanine or Residual Certificate)
shall deliver to the Certificate Registrar and the Depositor an opinion of
counsel (a "Benefit Plan Opinion") satisfactory to the Certificate Registrar,
and upon which the Certificate Registrar and the Depositor shall be entitled to
rely, to the effect that the purchase and holding of such Certificate by the
Transferee will not result in the assets of the Trust Fund being deemed to be
plan assets and subject to the prohibited transaction provisions of ERISA or the
Code and will not subject the Trustee, the Certificate Registrar or the
Depositor to any obligation in addition to those undertaken by such entities in
the Pooling and

                                      I-1
<PAGE>

Servicing Agreement, which opinion of counsel shall not be an expense of the
Trustee or the Depositor.

                                      I-2
<PAGE>

          Capitalized terms used but not defined herein shall have the meanings
ascribed to such terms in the Agreement.

          IN WITNESS WHEREOF, the Transferee has executed this certificate.

                                                       [Transferee]

                                              By:
                                              Name:
                                              Title:

                                      I-3
<PAGE>

J-1-2

                                   EXHIBIT J-1

                    FORM OF INVESTMENT LETTER [NON-RULE 144A]

                                                [DATE]

Citigroup Mortgage Loan Trust Inc.
390 Greenwich Street
New York, New York 10013

U.S. Bank National Association
60 Livingston Avenue
EP-MN-WS3D
St. Paul, Minnesota 55107-2292

          Re:       C-BASS Mortgage Loan Asset-Backed Certificates, Series
                    2004-CB7

Ladies and Gentlemen:

          In connection with our acquisition of the C-BASS Mortgage Loan
Asset-Backed Certificates, Series 2004-CB7 (the "Certificates"), we certify that
(a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) we are acquiring the Certificates for investment
for our own account and not with a view to any distribution of such Certificates
(but without prejudice to our right at all times to sell or otherwise dispose of
the Certificates in accordance with clause (g) below), (e) we agree that the
Certificates must be held indefinitely by us and we acknowledge that we are able
to bear the economic risk of investment in the Certificates, (f) we have not
offered or sold any Certificates to, or solicited offers to buy any Certificates
from, any person, or otherwise approached or negotiated with any person with
respect thereto, or taken any other action which would result in a violation of
Section 5 of the Act, (g) we will not sell, transfer or otherwise dispose of any
Certificates unless (1) such sale, transfer or other disposition is made
pursuant to an effective registration statement under the Act or is exempt from
such registration requirements, and if requested, we will at our expense provide
an opinion of counsel satisfactory to the addressees of this Certificate that
such sale, transfer or other disposition may be made pursuant to an exemption
from the Act, (2) the purchaser or transferee of such Certificate has executed
and delivered to you a certificate to substantially the same effect as this
certificate, and (3) the purchaser or transferee has otherwise complied with any
conditions for transfer set forth in the Pooling and Servicing Agreement and (h)
we acknowledge that the Certificates will bear a legend setting forth the
applicable restrictions on transfer.

                                     J-1-1
<PAGE>

                                               Very truly yours,

                                               [NAME OF TRANSFEREE]

                                               By:
                                                        Authorized Officer

                                     J-1-2
<PAGE>

                                   EXHIBIT J-2

                      FORM OF INVESTMENT LETTER [RULE 144A]

                                                  [DATE]

Citigroup Mortgage Loan Trust Inc.
390 Greenwich Street
New York, New York 10013

U.S. Bank National Association
60 Livingston Avenue
EP-MN-WS3D
St. Paul, Minnesota 55107-2292

          Re:       C-BASS Mortgage Loan Asset-Backed Certificates, Series
                    2004-CB7

Ladies and Gentlemen:

          In connection with our acquisition of the C-BASS Mortgage Loan
Asset-Backed Certificates, Series 2004-CB7 (the "Certificates"), we certify that
(a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have had the
opportunity to ask questions of and receive answers from the Depositor
concerning the purchase of the Certificates and all matters relating thereto or
any additional information deemed necessary to our decision to purchase the
Certificates, (c) we have not, nor has anyone acting on our behalf offered,
transferred, pledged, sold or otherwise disposed of the Certificates, any
interest in the Certificates or any other similar security to, or solicited any
offer to buy or accept a transfer, pledge or other disposition of the
Certificates, any interest in the Certificates or any other similar security
from, or otherwise approached or negotiated with respect to the Certificates,
any interest in the Certificates 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 Certificates under the Securities Act or that would render
the disposition of the Certificates a violation of Section 5 of the Securities
Act or require registration pursuant thereto, nor will act, nor has authorized
or will authorize any person to act, in such manner with respect to the
Certificates, (d) we are a "qualified institutional buyer" as that term is
defined in Rule 144A under the Securities Act and have completed either of the
forms of certification to that effect attached hereto as Annex 1 or Annex 2. We
are aware that the sale to us is being made in reliance on Rule 144A. We are
acquiring the Certificates for our own account or for resale pursuant to Rule
144A and further, understand that such Certificates 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 Securities Act.

                                     J-2-1
<PAGE>

                                              Very truly yours,

                                              [NAME OF TRANSFEREE]

                                              By:
                                                       Authorized Officer

                                     J-2-2
<PAGE>

                                                            ANNEX 1 TO EXHIBIT J

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees Other Than Registered Investment Companies]

          The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

          i. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

          ii. 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, as amended ("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 of 1986,
          as amended.

          ___ 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 statements, 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, a copy of which is attached
          hereto.

          ___ 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 $__________
in securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
invest on a discretionary basis at least $__________ in securities.

                                     J-2-3
<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 Advisor. The Buyer is an investment advisor registered
          under the Investment Advisors Act of 1940.

          ___ Small Business Investment Company. 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. Buyer is a business development
          company as defined in Section 202(a)(22) of the Investment Advisors
          Act of 1940.

          iii. 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) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iv) bank deposit notes and certificates of deposit,
(v) loan participations, (vi) repurchase agreements, (vii) securities owned but
subject to a repurchase agreement and (viii) currency, interest rate and
commodity swaps.

          iv. 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, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. 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, as
amended.

          v. 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

                                     J-2-4
<PAGE>

continue to rely on the statements made herein because one or more sales to the
Buyer may be in reliance on Rule 144A.

          vi. Until the date of purchase of the Rule 144A Securities, 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 the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                                  Print Name of Buyer

                                                  By:
                                                  Name:
                                                  Title:

                                                  Date:

                                     J-2-5
<PAGE>

                                                            ANNEX 2 TO EXHIBIT J

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [For Transferees That are Registered Investment Companies]

          The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

          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, as amended ("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, as
amended 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, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

          ___ 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) securities issued or guaranteed by
the U.S. or any instrumentality thereof, (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.

                                     J-2-6
<PAGE>

          5. The Buyer is familiar with Rule 144A and understands that the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates are relying and will continue to rely on the statements
made 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. Until the date of purchase of the Certificates, the undersigned
will notify the parties listed in the Rule 144A Transferee Certificate to which
this certification relates of any changes in the information and conclusions
herein. Until such notice is given, the Buyer's purchase of the Certificates
will constitute a reaffirmation of this certification by the undersigned as of
the date of such purchase.

                                              Print Name of Buyer or Adviser

                                              By:
                                              Name:
                                              Title:

                                              IF AN ADVISER:

                                              Print Name of Buyer

                                              Date:

                                     J-2-7
<PAGE>

                                    EXHIBIT K

                 FORM OF RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT

         C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2004-CB7

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

          The undersigned, being first duly sworn, deposes and says as follows:

          1. The undersigned is [an officer of] , the proposed Transferee of an
Ownership Interest in a [Class R and/or Class R-X Certificates] (the
"Certificates") issued pursuant to the Pooling and Servicing Agreement, (the
"Agreement"), relating to the above-referenced Certificates, among Citigroup
Mortgage Loan Trust Inc., as depositor, Credit-Based Asset Servicing and
Securitization LLC, as seller, Litton Loan Servicing LP, as servicer and U.S.
Bank National Association, as trustee. Capitalized terms used, but not defined
herein shall have the meanings ascribed to such terms in the Agreement. The
Transferee has authorized the undersigned to make this affidavit on behalf of
the Transferee.

          2. The Transferee is, as of the date hereof, and will be, as of the
date of the Transfer, a Permitted Transferee. The Transferee is acquiring its
Ownership Interest in the Certificates either (i) for its own account or (ii) as
nominee, trustee or agent for another Person and has attached hereto an
affidavit from such Person in substantially the same form as this affidavit. The
Transferee has no knowledge that any such affidavit is false.

          3. The Transferee has been advised of, and understands that (i) a tax
will be imposed on Transfers of the Certificates to Persons that are not
Permitted Transferees; (ii) such tax will be imposed on the transferor, or, if
such Transfer is through an agent (which includes a broker, nominee or
middleman) for a Person that is not a Permitted Transferee, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability for
the tax if the subsequent Transferee furnished to such Person an affidavit that
such subsequent Transferee is a Permitted Transferee and, at the time of
Transfer, such Person does not have actual knowledge that the affidavit is
false.

          4. The Transferee has been advised of, and understands that a tax will
be imposed on a "pass-through entity" holding the Certificates if at any time
during the taxable year of the pass-through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is a Permitted Transferee and the pass-through
entity does not have actual knowledge that such affidavit is false. (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 and, except as may be provided in Treasury Regulations,
persons holding interests in pass-through entities as a nominee for another
Person.)

                                      K-1
<PAGE>

          5. The Transferee has reviewed the provisions of Section 5.02(d) of
the Agreement and understands the legal consequences of the acquisition of an
Ownership Interest in the Certificates including, without limitation, the
restrictions on subsequent Transfers and the provisions regarding voiding the
Transfer and mandatory sales. The Transferee expressly agrees to be bound by and
to abide by the provisions of Section 5.02(d) of the Agreement and the
restrictions noted on the face of the Certificates. The Transferee understands
and agrees that any breach of any of the representations included herein shall
render the Transfer to the Transferee contemplated hereby null and void.

          6. The Transferee agrees to require a Transfer Affidavit from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in the
Certificates, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth in this Exhibit K to the Agreement (a "Transferor Certificate")
to the effect that such Transferee has no actual knowledge that the Person to
which the Transfer is to be made is not a Permitted Transferee.

          7. The Transferee does not have the intention to impede the assessment
or collection of any tax legally required to be paid with respect to the
Certificates.

          8. The Transferee's taxpayer identification number is .

          9. The Transferee is a U.S. Person as defined in Code Section
7701(a)(30).

          10. The Transferee is aware that the Certificates may be a
"noneconomic residual interest" within the meaning of proposed 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
to the income on such residual interest, unless no significant purpose of the
transfer was to impede the assessment or collection of tax.

          11. The Transferee is not an employee benefit plan that is subject to
ERISA or a plan that is subject to Section 4975 of the Code, nor are we acting
on behalf of such a plan.

                                      K-2
<PAGE>

                  IN WITNESS WHEREOF, the Transferee has caused this instrument
to be executed on its behalf, pursuant to authority of its Board of Directors,
by its duly authorized officer and its corporate seal to be hereunto affixed,
duly attested, this day of , 20 .

                                        [NAME OF TRANSFEREE]

                                        By:
                                        Name:
                                        Title:

[Corporate Seal]

ATTEST:

[Assistant] Secretary

          Personally appeared before me the above-named , known or proved to me
to be the same person who executed the foregoing instrument and to be the of the
Transferee, and acknowledged that he executed the same as his free act and deed
and the free act and deed of the Transferee.

          Subscribed and sworn before me this____ day of____ , 20__.

                                        NOTARY PUBLIC

                                        My Commission expires the      day

                                        of                 , 20  .
                                           ----------------    --

                                      K-3
<PAGE>

                                    EXHIBIT L

                         FORM OF TRANSFEROR CERTIFICATE

                                                [DATE]

U.S. Bank National Association
60 Livingston Avenue
EP-MN-WS3D
St. Paul, Minnesota 55107-2292

Citigroup Mortgage Loan Trust Inc.
390 Greenwich Street
New York, New York 10013

          Re:       C-BASS Mortgage Loan Asset-Backed Certificates, Series
                    2004-CB7

Ladies and Gentlemen:

          In connection with our disposition of the C-BASS Mortgage Loan
Asset-Backed Certificates, Series 2004-CB7 (the "Certificates"), we certify that
(a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act"), and are being disposed by us in
a transaction that is exempt from the registration requirements of the Act, (b)
we have not offered or sold any Certificates to, or solicited offers to buy any
Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, in a manner that would be deemed, or taken any
other action which would result in, a violation of Section 5 of the Act, (c) [in
the case of a Residual Certificate only] to the extent we are disposing of a
Class [R, or R-X] Certificate, we have no knowledge the Transferee is not a
Permitted Transferee and (d) [in the case of a Residual Certificate only] no
purpose of the proposed disposition of a Class [R, or R-X] Certificate is to
impede the assessment or collection of tax.

                                       Very truly yours,

                                       [TRANSFEROR]

                                       By: ______________________________
                                       Name:
                                       Title:

                                      L-1
<PAGE>

                                    EXHIBIT M

                    MONTHLY INFORMATION PROVIDED BY SERVICER

1.        With respect to the Mortgage Pool, the number and Principal Balances
          of all Mortgage Loans which were the subject of Principal Prepayments
          during the related Due Period.

2.        With respect to the Mortgage Pool, the amount of all curtailments
          which were received during the related Due Period.

3.        With respect to the Mortgage Pool, the aggregate amount of principal
          portion of all Monthly Payments received during the related Due
          Period.

4.        With respect to the Mortgage Pool, the amount of interest received on
          the Mortgage Loans during the related Due Period.

5.        With respect to the Mortgage Pool, the aggregate amount of the
          Advances made and recovered with respect to such Distribution Date.

6.        With respect to the Mortgage Pool, the delinquency and foreclosure
          information and the amount of Mortgage Loan Losses during the related
          Due Period.

7.        With respect to the Mortgage Pool, the weighted average maturity, the
          weighted average Mortgage Interest Rate and the weighted average Net
          Mortgage Interest Rate as of the last day of the Due Period preceding
          of the related Interest Accrual Period.

8.        The Servicing Fees paid and Servicing Fees accrued during the related
          Due Period.

9.        The amount of all payments or reimbursements to the Servicer paid or
          to be paid since the prior Distribution Date (or in the case of the
          first Distribution Date, since the Closing Date).

10.       The Pool Balance.

11.       With respect to the Mortgage Pool, the number of Mortgage Loans
          outstanding at the beginning and at the end of the related Due Period.

12.       The aggregate interest accrued on the Mortgage Loans at their
          respective Mortgage Interest Rates for the related Due Period.

13.       The amount deposited in the Collection Account which may not be
          withdrawn therefrom pursuant to an Order of a United States Bankruptcy
          Court of competent jurisdiction imposing a stay pursuant to Section
          362 of U.S. Bankruptcy Code.

14.       The aggregate Realized Losses since the Cut-off Date as of the end of
          the related Due Period.

15.       The LIBOR Carryover Amount for the Offered Certificates and the Class
          B-2, Class B-3 and the Class B-4 Certificates, if any, with respect to
          such Distribution Date.

                                      M-1
<PAGE>

16.       The Overcollateralized Amount, the Targeted Overcollateralization
          Amount and any Overcollateralization Deficiency, in each case after
          giving effect to distributions on such Distribution Date.

                                      M-2
<PAGE>

                                    EXHIBIT N

            FORM OF OFFICER'S CERTIFICATE WITH RESPECT TO PREPAYMENTS

                              Officer's Certificate
         C-BASS Mortgage Loan Asset-Backed Certificates, Series 2004-CB7

                                                     [DATE]

VIA FACSIMILE

U.S. Bank National Association, Trustee
60 Livingston Avenue
EP-MN-WS3D
St. Paul, Minnesota 55107-2292

          Re:       Prepayments

Dear Sir or Madam:

          __________________ hereby certifies that he/she is an officer of the
Servicer, holding the office set forth beneath his/her name and hereby further
certifies as follows:

                  With respect to the Mortgage Loans set forth in the attached
schedule:

          1.        A Principal Prepayment in full was received during the
                    related Collection Period;

          2.        Any prepayment penalty due under the terms of the Mortgage
                    Note with respect to such Principal Prepayment in full was
                    received from the mortgagor and deposited in the Collection
                    Account: ____ Yes ____ No

          3.        As to each Mortgage Loan so noted on the attached schedule,
                    all or part of the prepayment penalty required in connection
                    with the Principal Prepayment in full was waived based upon
                    (Circle one):

                    (i) the Servicer's determination that such waiver would
                    maximize recovery of Liquidation Proceeds for such Mortgage
                    Loan, taking into account the value of such prepayment
                    penalty, or

                    (ii)(A) the enforceability thereof be limited (1) by
                    bankruptcy insolvency, moratorium, receivership, or other
                    similar law relating to creditors' rights generally or (2)
                    due to acceleration in connection with a foreclosure or
                    other involuntary payment, or (B) the enforceability is
                    otherwise limited or prohibited by applicable law;

                                      N-1
<PAGE>

          4.        We certify that all amounts due in connection with the
                    waiver of a prepayment penalty inconsistent with number 3
                    above which are required to be deposited by the Servicer
                    pursuant to Section 3.01 of the Pooling and Servicing
                    Agreement, have been or will be so deposited.

          Capitalized terms used herein shall have the meanings ascribed to such
terms in the Pooling and Servicing Agreement, dated October 1, 2004, among
Citigroup Mortgage Loan Trust Inc., as depositor, Credit-Based Asset Servicing
and Securitization LLC, as seller, Litton Loan Servicing LP, as servicer and
U.S. Bank National Association, as trustee.

                                       LITTON LOAN SERVICING LP

                                       By:
                                       Name:
                                       Title:

                                      N-2
<PAGE>

                                   EXHIBIT O-1

       FORM OF CERTIFICATION TO BE PROVIDED BY THE SERVICER WITH FORM 10-K

                                  Certification

          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 Citigroup
Mortgage Loan Trust, Series 2004-CB7, C-BASS Mortgage Loan Asset-Backed
Certificates;

          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. Based on my knowledge and upon the annual compliance statement
included in the report and required to be delivered to the trustee in accordance
with the terms of the pooling and servicing, or similar, agreement, and except
as disclosed in the reports, the servicer has fulfilled its obligations under
the servicing 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: U.S. Bank
National Association.

                                      LITTON LOAN SERVICING LP

                                      By:____________________________________
                                      Name:
                                      Title:
                                      Date:

                                     O-1-1
<PAGE>

                                   EXHIBIT O-2

                           FORM OF CERTIFICATION TO BE
                       PROVIDED TO Servicer BY THE TRUSTEE

          Re:       C-BASS Mortgage Loan Asset-Backed Certificates, Series
                    2004-CB7

          I, [identify the certifying individual], certify to Litton Loan
Servicing LP (the "Servicer"), 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 Monthly Statements filed in
respect of periods included in the year covered by that annual report, of
Citigroup Mortgage Loan Trus, Inc. (the "Depositor") relating to the above
referenced trust;

          2. Subject to paragraph 4 hereof, based on my knowledge, the
Distribution Information in the Monthly Statements 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 Pooling and Servicing Agreement is included in
these reports.

          4. In compiling the Distribution Information and making the foregoing
certifications, the Trustee has relied upon information furnished to it by the
Servicer under the Pooling and Servicing Agreement. The Trustee shall have no
responsibility or liability for any inaccuracy in such reports resulting from
information so provided to it by the Servicer.

          Capitalized terms used but not defined herein have the meanings
ascribed to them in the Pooling and Servicing Agreement, dated October 1, 2004
(the "Pooling and Servicing Agreement"), among the Depositor, Credit-Based Asset
Servicing and Securitization LLC, as seller, the Servicer, and U.S. Bank
National Association, as trustee.

                                      U.S. BANK NATIONAL ASSOCIATION,
                                      as Trustee

                                      By:__________________________________
                                      Name:
                                      Title:
                                      Date:

                                     O-2-1
<PAGE>

                                    EXHIBIT P

                            FORM OF POWER OF ATTORNEY

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO
LITTON LOAN SERVICING LP
4828 Loop Central Drive
Houston, Texas 77081
Attn: _________________________________

                            LIMITED POWER OF ATTORNEY

          KNOW ALL MEN BY THESE PRESENTS, that U.S. Bank National Association,
having its principal place of business at 60 Livingston Avenue, St. Paul,
Minnesota 55107-2292, as Trustee (the "Trustee") pursuant to that Pooling and
Servicing Agreement among Citigroup Mortgage Loan Trust Inc. as depositor (the
"Depositor"), Litton Loan Servicing LP (the "Servicer"), Credit-Based Asset
Servicing and Securities LLC and the Trustee, dated as of October 1, 2004 (the
"Pooling and Servicing Agreement"), hereby constitutes and appoints the
Servicer, by and through the Servicer's officers, the Trustee's true and lawful
Attorney-in-Fact, in the Trustee's name, place and stead and for the Trustee's
benefit, in connection with all mortgage loans serviced by the Servicer pursuant
to the Pooling and Servicing Agreement for the purpose of performing all acts
and executing all documents in the name of the Trustee as may be customarily and
reasonably necessary and appropriate to effectuate the following enumerated
transactions in respect of any of the mortgages or deeds of trust (the
"Mortgages" and the "Deeds of Trust", respectively) and promissory notes secured
thereby (the "Mortgage Notes") for which the undersigned is acting as Trustee
for various certificateholders (whether the undersigned is named therein as
mortgagee or beneficiary or has become mortgagee by virtue of endorsement of the
Mortgage Note secured by any such Mortgage or Deed of Trust) and for which the
Servicer is acting as servicer, all subject to the terms of the Pooling and
Servicing Agreement.

          This appointment shall apply to the following enumerated transactions
only:

          1. The modification or re-recording of a Mortgage or Deed of Trust,
where said modification or re-recordings is for the purpose of correcting the
Mortgage or Deed of Trust to conform same to the original intent of the parties
thereto or to correct title errors discovered after such title insurance was
issued and said modification or re-recording, in either instance, does not
adversely affect the lien of the Mortgage or Deed of Trust as insured.

          2. The subordination of the lien of a Mortgage or Deed of Trust to an
easement in favor of a public utility company of a government agency or unit
with powers of eminent domain; this section shall include, without limitation,
the execution of partial satisfactions/releases, partial reconveyances or the
execution or requests to trustees to accomplish same.

                                      P-1
<PAGE>

          3. The conveyance of the properties to the mortgage insurer, or the
closing of the title to the property to be acquired as real estate owned, or
conveyance of title to real estate owned.

          4. The completion of loan assumption agreements.

          5. The full satisfaction/release of a Mortgage or Deed of Trust or
full conveyance upon payment and discharge of all sums secured thereby,
including, without limitation, cancellation of the related Mortgage Note.

          6. The assignment of any Mortgage or Deed of Trust and the related
Mortgage Note, in connection with the repurchase of the mortgage loan secured
and evidenced thereby.

          7. The full assignment of a Mortgage or Deed of Trust upon payment and
discharge of all sums secured thereby in conjunction with the refinancing
thereof, including, without limitation, the assignment of the related Mortgage
Note.

          8. With respect to a Mortgage or Deed of Trust, the foreclosure, the
taking of a deed in lieu of foreclosure, or the completion of judicial or
non-judicial foreclosure or termination, cancellation or rescission of any such
foreclosure, including, without limitation, any and all of the following acts:

                    a. the substitution of trustee(s) serving under a Deed of
          Trust, in accordance with state law and the Deed of Trust;

                    b. the preparation and issuance of statements of breach or
          non-performance;

                    c. the preparation and filing of notices of default and/or
          notices of sale;

                    d. the cancellation/rescission of notices of default and/or
          notices of sale;

                    e. the taking of a deed in lieu of foreclosure; and

                    f. the preparation and execution of such other documents and
          performance of such other actions as may be necessary under the terms
          of the Mortgage, Deed of Trust or state law to expeditiously complete
          said transactions in paragraphs 8.a. through 8.e., above.

          The undersigned gives said Attorney-in-Fact full power and authority
to execute such instruments and to do and perform all and every act and thing
necessary and proper to carry into effect the power or powers granted by or
under this Limited Power of Attorney as fully as the undersigned might or could
do, and hereby does ratify and confirm to all that said Attorney-in-Fact shall
lawfully do or cause to be done by authority hereof.

                                      P-2
<PAGE>

          Third parties without actual notice may rely upon the exercise of the
power granted under this Limited Power of attorney; and may be satisfied that
this Limited Power of Attorney shall continue in full force and effect and has
not been revoked unless an instrument of revocation has been made in writing by
the undersigned.

                                      P-3
<PAGE>

IN WITNESS WHEREOF, U.S. Bank National Association as Trustee pursuant to that
Pooling and Servicing Agreement among the Depositor, the Servicer, and the
Trustee, dated as of October 1, 2004 (Citigroup Mortgage Loan Trust, Series
2004-CB7, C-BASS Mortgage Loan Asset-Backed Certificates), has caused its
corporate seal to be hereto affixed and these presents to be signed and
acknowledged in its name and behalf by _______ its duly elected and authorized
Vice President this _____ day of ______, 200__.

                                   As Trustee for Citigroup Mortgage Loan Trust,
                 Series 2004-CB7, C-BASS Mortgage Loan Asset-Backed Certificates

                                           By __________________________________

STATE OF
         ----------------------------------------------

COUNTY OF
           ------------------------------------------

On ___________, 200__, before me, the undersigned, a Notary Public in and for
said state, personally appeared ___________, Vice President of U.S. Bank
National Association as Trustee for Citigroup Mortgage Loan Trust, Series
2004-CB7 C-BASS Mortgage Loan Asset-Backed Certificates, personally known to me
to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed that same in his/her authorized
capacity, and that by his/her signature on the instrument the entity upon behalf
of which the person acted and executed the instrument.

WITNESS my hand and official seal.
         (SEAL)
================================================================================
Notary Public
My      Commission              Expires         ________________________

<PAGE>

                                      P-4
<PAGE>

                                    EXHIBIT Q

                              FORM OF CAP CONTRACTS

                             AVAILABLE UPON REQUEST

                                      Q-1

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