Document:

c50186_10-8.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EXHIBIT 10.8

EMPLOYMENT AGREEMENT

      This AGREEMENT (the “Agreement”) is made as of the date signed (the “Effective Date”), by and between Sales Strategies Inc., a New Jersey corporation ("Employer") with its headquarters located in Boulder,
Colorado (the “Employer”), and Thomas G. Kunigonis, Jr. (the “Executive”). In consideration of the mutual covenants contained in this Agreement, the Employer and the Executive agree as follows: 

     1. Employment. The Employer agrees to employ the Executive and the Executive agrees to be employed by the Employer on the terms and
conditions set forth in this Agreement. 

     2. Capacity;
Location. The Executive shall serve the Employer
as President. In his capacity as President, Executive
will report to the President (the "President ") of Incentra Solutions, Inc.,
a Nevada corporation, the parent corporation of Employer ("Parent"), and shall
be responsible for Employer's  overall operations activities subject to the direction
of the President. In such capacity, the Executive shall perform such services
and duties in connection with the business, affairs and operations of the Employer
as may be assigned or delegated  to the Executive from time to time by or under
the authority of the President. Executive’s employment with Employer will
be based in Employer’s Metuchen, New Jersey, offices; provided,
that Employee may be required from time to time to travel in connection with
Employer’s business needs. 

     3. Term. The term of this Agreement shall be three (3) years unless otherwise terminated in accordance with its provisions. 

     4. Compensation and Benefits. The regular compensation and benefits payable to the Executive under this Agreement shall be as follows:

     (a) Salary. For all services rendered by the Executive under this Agreement, the Employer shall pay the
Executive a salary (the “Salary”) at the  annual rate of  Three Hundred Thirty-Three Thousand
Dollars ($333,000.00), subject to increase from time to time in the discretion of the Employer. The Salary shall be payable in periodic installments in accordance with the Employer’s usual practice for its senior executives.

     (b) Regular Benefits. The Executive shall be entitled to health insurance benefits from
Employer, and shall also be entitled to participate in any employee benefit plans, life insurance plans, disability income plans, retirement 

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plans, expense reimbursement plans and other benefit plans which the Employer may from time to time have in effect for all or most of its executive management employees. Such participation shall be subject to the terms of the
applicable plan documents, generally applicable policies of the Employer, applicable law and the discretion of the Employer or any administrative or other committee provided for in or contemplated by any such plan. Except with respect to the
aforementioned health insurance benefits, nothing contained in this Agreement shall be construed to create any obligation on the part of the Employer to establish any such plan or to maintain the effectiveness of any such plan which may be in effect
from time to time. 

     (c) Vacation. The Executive shall be entitled to four (4) weeks of vacation per calendar year. 

     (d) Taxation of Payments and Benefits. The Employer shall undertake to make deductions, withholdings and tax reports with respect to payments
and benefits under this Agreement to the extent that it reasonably and in good faith believes that it is required to make such deductions, withholdings and tax reports. Payments under this Agreement shall be in amounts net of any such deductions or
withholdings. Nothing in this Agreement shall be construed to require the Employer to make any payments to compensate the Executive for any adverse tax effect associated with any payments or benefits or for any deduction or withholding from any
payment or benefit. 

     (e) Expenses. The Employer shall reimburse the Executive for all reasonable and necessary business related travel expenses incurred or paid
by the Executive in performing his duties under this Agreement and which are consistent with applicable policies of the Employer. All payments for reimbursement of such expenses shall be made upon presentation by the Executive of expense statements
or vouchers and such other supporting information as the Employer may from time to time reasonably request. 

     (f) Stock Options. Executive shall also be eligible for participation in Employer’s Parent's Stock Option Plan, and Executive shall be
entitled to receive stock options pursuant to the terms of option agreements. 

      (g) Exclusivity of Salary and Benefits. The Executive shall not be entitled to any payments or benefits other than those provided under this
Agreement. 

     5. Extent of Service. During the Executive’s employment under this Agreement, the Executive shall devote the Executive’s full
business time, best efforts and business judgment, skill and knowledge to the advancement of the Employer’s interests and to the discharge of the Executive’s duties and responsibilities under this Agreement. The Executive shall not engage
in any other business activity, except as may be approved

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by the Employer; provided, that nothing in this Agreement shall be construed as preventing the Executive from: 

     (a) investing the Executive’s assets in any Employer or other entity in a manner not prohibited by Section 7(d) and in such form or manner as shall not require any material activities on the
Executive’s part in connection with the operations or affairs of the companies or other entities in which such investments are made; or 

     (b) engaging in religious, charitable or other community or non-profit activities that do not impair the Executive’s ability to fulfill the Executive’s duties and responsibilities under this
Agreement. 

     6. Termination. The Executive’s employment under this Agreement shall terminate under the following circumstances set forth in this
Section 6. 

     (a) Termination by the Employer for Cause. The Executive’s employment under this Agreement may be terminated for “Cause”
without further liability on the part of the Employer, effective immediately upon a vote of the managers of the Employer and written notice to the Executive. Only the following shall constitute “Cause” for such termination: 

     (i) dishonest or fraudulent statements or acts of the Executive with respect to the Employer or any affiliate of the Employer;

     (ii) the Executive’s conviction of, or entry of a plea of guilty or nolo contendere for, (A) a felony or (B) any misdemeanor (excluding minor traffic violations) involving moral turpitude,
deceit, dishonesty or fraud; 

      (iii) gross negligence, willful misconduct or insubordination of the Executive with respect to the Employer or any affiliate of the Employer; or 

     (iv) material breach by the Executive of any of the Executive’s obligations under this Agreement; provided, however, that any such breach shall not be deemed Cause hereunder unless and until
Executive shall have received from Employer or the President written notice of the breach and had an opportunity to cure such breach, and thereafter such breach shall only be deemed Cause if not cured within thirty (30) days of Executive’s
receipt of such written notice. 

      (b) Termination by the Executive. The Executive’s employment under this Agreement may be terminated unilaterally by the Executive by
written notice to Employer at least thirty (30) days prior to such termination. 

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     (c) Termination by Executive For Good Reason. The Executive may, at his option, terminate Executive's employment for “Good Reason”
by giving a notice of termination to Employer in the event that: (i) there is a failure of Employer (or successor employer) to promptly pay Executive’s salary or additional compensation or benefits hereunder in accordance with this Agreement in
any material respect, (ii) Executive is assigned duties substantially inconsistent with his title without Executive's prior written consent, (iii) Executive’s principal place of employment is assigned to a geographic location not agreed to by
Executive, or (iv) any other material violation or breach by Employer of this Agreement. It shall also be considered Good Reason for termination by Executive if, in the event of a Change of Control (as hereinafter defined), any successor employer
fails to fully assume Employer’s obligations under this Agreement. For the purposes of this Agreement, a “Change of Control” shall mean the occurrence of any of the following events: (A) a dissolution or liquidation of the Employer;
(B) a sale or other disposition of all or substantially all of the Employer’s assets; (C) a merger or consolidation involving the Employer in which stockholders of the Employer immediately prior to such transaction do not own a majority of the
voting power of the Employer or its successor immediately after such transaction; or (D) a sale or other transfer of capital stock of Employer in one or a series of related transactions whereby an individual or “group” (as such term is
used in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) which did not previously have direct or indirect “control” (as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended) of
Employer acquires such control. 

     (d) Termination by the Employer Without Cause. Subject to the payment of Termination Benefits pursuant to Section 6(e), the Executive’s
employment under this Agreement may be terminated by the Employer without Cause upon written notice to the Executive (a termination “Without Cause”). 

      (e) Certain Termination Benefits. Unless otherwise specifically provided in this Agreement or otherwise required by law, all compensation
and benefits payable to the Executive under this Agreement shall terminate on the date of termination of the Executive’s employment under this Agreement, if and only if such termination is consistent with termination For Cause under Section
6(a), or unilateral termination by the Executive under Section 6(b) above. In the event of termination of the Executive’s employment with the Employer is for Good Reason pursuant to Section 6(c) or Without Cause pursuant to Section 6(d) above,
the Employer shall provide to the Executive the following termination benefits (“Termination Benefits”): 

     (i) payment of the Executive’s Salary at the rate then in effect pursuant to Section 4(a) for the period from the date of termination until the date on which the term of this Agreement expires as
indicated in paragraph 3 hereof; provided, however, that in no event shall the payment to Executive hereunder constitute less than twelve (12) months of 

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Executive’s then current Salary, regardless of the remaining term of this Agreement; and 

     (ii) continuation of group health plan benefits to the extent authorized by and consistent with 29 U.S.C. § 1161 et seq. (commonly known
as “COBRA”), with the cost of the regular premium for such benefits shared in the same relative proportion by the Employer and the Executive as in effect on the date of termination for twelve (12) months and at a cost of 102% of premium
provided under COBRA, for up to an additional six (6) months. 

          Notwithstanding the foregoing, nothing in this Section 6(e) shall be construed to affect the Executive’s right to receive COBRA continuation entirely at the Executive’s own cost to the
extent that the Executive may continue to be entitled to COBRA continuation after the Executive’s right to cost sharing under Section 6(d)(ii) ceases.

          (f) Disability. If the Executive shall be disabled so as to be unable to perform the essential functions of the Executive’s then
existing position or positions under this Agreement with reasonable accommodation, the Employer may remove the Executive from any responsibilities and/or reassign the Executive to another position with the Employer during the period of such
disability. Notwithstanding any such removal or reassignment, the Executive shall continue to receive all payments and benefits contemplated under this Agreement the same as if the Executive employment with Employer was terminated Without Cause (in
which case Executive would receive all Termination Benefits, less any disability pay or sick pay benefits to which the Executive may be entitled under the Employer’s policies). If any question shall arise as to whether during any period the
Executive is disabled so as to be unable to perform the essential functions of the Executive’s then existing position or positions with reasonable accommodation, the Executive may, and at the request of the Employer shall, submit to the
Employer a certification in reasonable detail by a physician selected by the Employer to whom the Executive or the Executive’s guardian has no reasonable objection as to whether the Executive is so disabled or how long such disability is
expected to continue, and such certification shall for the purposes of this Agreement be conclusive of the issue. The Executive shall cooperate with any reasonable request of the physician in connection with such certification. If such question
shall arise and the Executive shall fail to submit such certification, the Employer’s determination of such issue shall be binding on the Executive. Nothing in this Section 6(f) shall be construed to waive the Executive’s rights, if any,
under existing law including, without limitation, the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities Act, 42 U.S.C. §12101
et seq.

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     7. Confidential Information, Noncompetition and
Cooperation.

     (a) Confidential Information. As used in this Agreement, “Confidential Information” means information belonging to the Employer which is of value to the Employer in the course of conducting its business and the disclosure of which could result in a competitive or other
disadvantage to the Employer. Confidential Information includes, without limitation, financial information, reports, and forecasts; inventions, improvements and other intellectual property; trade secrets; know-how; designs, processes or formulae;
software; market or sales information or plans; customer lists; and business plans, prospects and opportunities (such as possible acquisitions or dispositions of businesses or facilities) which have been discussed or considered by the management of
the Employer. Confidential Information includes information developed by the Executive in the course of the Executive’s employment by the Employer, as well as other information to which the Executive may have access in connection with the
Executive’s employment. Confidential Information also includes the confidential information of others with which the Employer has a business relationship. Notwithstanding the foregoing, Confidential Information does not include information in
the public domain, unless due to breach of the Executive’s duties under Section 7(b). 

     (b) Confidentiality. The Executive understands and agrees that the Executive’s employment creates a relationship of confidence and trust
between the Executive and the Employer with respect to all Confidential Information. At all times, both during the Executive’s employment with the Employer and after its termination, the Executive will keep in confidence and trust all such
Confidential Information, and will not use or disclose any such Confidential Information without the written consent of the Employer, except as may be necessary in the ordinary course of performing the Executive’s duties to the Employer.

     (c) Documents, Records, etc. All documents, records, data, apparatus, equipment and other physical property, whether or not pertaining to
Confidential Information, which are furnished to the Executive by the Employer or are produced by the Executive in connection with the Executive’s employment will be and remain the sole property of the Employer. The Executive will return to the
Employer all such materials and property as and when requested by the Employer. In any event, the Executive will return all such materials and property immediately upon termination of the Executive’s employment for any reason. The Executive
will not retain with the Executive any such material or property or any copies thereof after such termination. 

     (d) Noncompetition and Nonsolicitation. Without the prior written consent of Employer, during the period that Executive is employed by
Employer and for five (5) years thereafter, the Executive (i) will not, directly or indirectly, whether as owner, partner, shareholder, consultant, agent, employee, co-venturer or otherwise, engage, participate, assist or invest in any Competing
Business (as 

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hereinafter defined); (ii) will refrain from directly or indirectly employing, attempting to employ, recruiting or otherwise soliciting, inducing or influencing any person to leave employment with the Employer; and (iii) will
refrain from soliciting or encouraging any customer or supplier to terminate or otherwise modify adversely its business relationship with the Employer. The Executive understands that the restrictions set forth in this Section 7(d) are intended to
protect the Employer’s interest in its Confidential Information and established employee, customer and supplier relationships and goodwill, and agrees that such restrictions are reasonable and appropriate for this purpose. The Executive’s
obligation to keep the Confidential Information confidential expires at the same time as indicated in the first sentence of this subparagraph (d). For purposes of this Agreement, the term “Competing Business” shall mean any business that
provides or intends to provide the same or similar types of services or products as those provided by Employer, its parent company, or any of such parent company's subsidiaries during Executive's employment with the Company in any geographic area
then served by Employer, Employer's parent company, or any of such parent company's subsidiaries. Notwithstanding the foregoing, the Executive may own up to two percent (2%) of the outstanding stock of a publicly held corporation. 

     (e) Third-Party Agreements and Rights. The Executive hereby confirms that the Executive is not bound by the terms of any agreement with any
previous employer or other party which restricts in any way the Executive’s use or disclosure of information or the Executive’s engagement in any business. The Executive represents to the Employer that the Executive’s execution of
this Agreement, the Executive’s employment with the Employer and the performance of the Executive’s proposed duties for the Employer will not violate any obligations the Executive may have to any such previous employer or other party. In
the Executive’s work for the Employer, the Executive will not disclose or make use of any information in violation of any agreements with or rights of any such previous employer or other party, and the Executive will not bring to the premises
of the Employer any copies or other tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party. 

     (f) Litigation and Regulatory Cooperation. During and after the Executive’s employment, the Executive shall cooperate fully with the
Employer in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Employer which relate to events or occurrences that transpired while the Executive was employed by the
Employer. The Executive’s full cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Employer
at mutually convenient times. During and after the Executive’s employment, the Executive also shall cooperate fully with the Employer in connection with any investigation or review of any federal, state or local regulatory authority as any such
investigation or review relates to events or occurrences that transpired while 

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the Executive was employed by the Employer. The Employer shall reimburse the Executive for any reasonable out-of-pocket expenses incurred in connection with the Executive’s performance of obligations pursuant to this Section
7(f) and shall pay the Executive for his time at his annual salary rate in effect at the time of the termination of his employment. 

     (g) Injunction. The Executive agrees that it would be difficult to measure any damages caused to the Employer which might result from any
breach by the Executive of the promises set forth in this Section 7, and that in any event money damages would be an inadequate remedy for any such breach. Accordingly, subject to Section 8 of this Agreement, the Executive agrees that if the
Executive breaches, or proposes to breach, any portion of this Agreement, the Employer shall be entitled, in addition to all other remedies that it may have, to an injunction or other appropriate equitable relief to restrain any such breach without
showing or proving any actual monetary yet sustained by Employer. 

     8. Arbitration of Disputes. Any controversy or claim arising out of or relating to this Agreement or the breach thereof or otherwise arising
out of the Executive’s employment or the termination of that employment (including, without limitation, any claims of unlawful employment discrimination whether based on age or otherwise) shall, to the fullest extent permitted by law, be
settled by arbitration in any forum and form agreed upon by the parties or, in the absence of such an agreement, under the auspices of the American Arbitration Association (“AAA”) in Denver, Colorado, in accordance with the Employment
Dispute Resolution Rules of the AAA, including, but not limited to, the rules and procedures applicable to the selection of arbitrators. In the event that any person or entity other than the Executive or the Employer may be a party with regard to
any such controversy or claim, such controversy or claim shall be submitted to arbitration subject to such other person or entity’s agreement. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction
thereof. This Section 8 shall be specifically enforceable. Notwithstanding the foregoing, this Section 8 shall not preclude either party from pursuing a court action for the sole purpose of obtaining a temporary restraining order or a preliminary
injunction in circumstances in which such relief is appropriate; provided, that any other relief shall be pursued through an arbitration proceeding pursuant to this Section 8. 

     9. Consent to Jurisdiction. To the extent that any court action is permitted consistent with or to enforce Section 8 of this Agreement, the
parties hereby consent to the jurisdiction of the courts of the State of Colorado. Accordingly, with respect to any such court action, the Executive and Employer both (a) submit to the personal jurisdiction of such courts; (b) consent to service of
process; and (c) waive any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process. 

     10. Integration. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes
all prior agreements between the parties with respect to any related subject matter. 

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     11. Assignment; Successors and Assigns, etc. Neither the Employer nor the Executive may make any assignment of this Agreement or any interest
herein, by operation of law or otherwise, without the prior written consent of the other party; provided, that the Employer may assign its rights under this Agreement without the consent of
the Executive in the event that the Employer shall effect a reorganization, consolidate with or merge into any other corporation, partnership, organization or other entity, or transfer all or substantially all of its properties or assets to any
other corporation, partnership, organization or other entity. This Agreement shall inure to the benefit of and be binding upon the Employer and the Executive, their respective successors, executors, administrators, heirs and permitted assigns.

     12. Enforceability. If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of
this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is
so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 

     13. Waiver. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of any
party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent
breach. 

     14. Notices. Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and
delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to the Executive at the last address the Executive has filed in writing with the Employer
or, in the case of the Employer, at 1140 Pearl Street, Boulder, CO 80302, ATTN: Thomas P. Sweeney III, and shall be effective on the date of delivery in person or by courier or three (3) days after the date mailed. 

     15. Amendment. This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly authorized
representative of the Employer. 

     16. Governing Law. This is an Illinois contract and shall be construed under and be governed in all respects by the laws of the State of
Colorado, without giving effect to the conflict of laws principles of such State. 

     17. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be taken
to be an original; but such counterparts shall together constitute one and the same document. 

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IN WITNESS WHEREOF, this Agreement has been executed by the Employer and by the Executive as of the ___ day of August 2007. 

SALES STRATEGIES INC.

By: _______________________ 

Name: Thomas P. Sweeney III

Title: Chief Executive Officer

EXECUTIVE:

__________________________

Thomas G. Kunigonis, Jr.

10Ex. 10.1

                RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.,

                                    Company,

                        RESIDENTIAL FUNDING COMPANY, LLC,

                                Master Servicer,

                                       and

                         U.S. BANK NATIONAL ASSOCIATION,

                                     Trustee

                               SERIES SUPPLEMENT,

                           DATED AS OF AUGUST 1, 2007

                                       TO

                                STANDARD TERMS OF

                         POOLING AND SERVICING AGREEMENT

                            DATED AS OF JULY 1, 2007

                       Mortgage Pass-Through Certificates

                                 Series 2007-S8

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ARTICLE I             DEFINITIONS................................................................................4

         Section 1.01          Definitions.......................................................................4

         Section 1.02          Use of Words and Phrases.........................................................27

ARTICLE II            ARTICLE II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES................28

         Section 2.01          Conveyance of Mortgage Loans.....................................................28

         Section 2.02          Acceptance by Trustee.  (See Section 2.02 of the Standard Terms).................28

         Section 2.03          Representations, Warranties and Covenants of the Master Servicer and the
                               Company..........................................................................28

         Section 2.04          Representations and Warranties of Residential Funding.  (See Section 2.04
                               of the Standard Terms)...........................................................31

         Section 2.05          Execution and Authentication of Class R-I Certificates...........................31

         Section 2.06          Conveyance of Uncertificated REMIC I Regular Interests; Acceptance by the
                               Trustee..........................................................................32

         Section 2.07          Issuance of Certificates Evidencing Interest in REMIC II.........................32

         Section 2.08          Purposes and Powers of the Trust.  (See Section 2.08 of the Standard
                               Terms)...........................................................................32

         Section 2.09          Agreement Regarding Ability to Disclose..........................................32

ARTICLE III           ADMINISTRATION AND SERVICING OF MORTGAGE LOANS............................................33

         Section 3.01          Master Servicer to Act as Servicer.  (See Section 3.01 of the Standard
                               Terms)...........................................................................33

         Section 3.02          Subservicing Agreements Between Master Servicer and Subservicers;
                               Enforcement of Subservicers' and Sellers' Obligations............................33

         Section 3.03          Successor Subservicers.  (See Section 3.03 of the Standard Terms)................34

         Section 3.04          Liability of the Master Servicer.  (See Section 3.04 of the Standard
                               Terms)...........................................................................34

         Section 3.05          No Contractual Relationship Between Subservicer and Trustee or
                               Certificateholders.  (See Section 3.05 of the Standard Terms)....................34

         Section 3.06          Assumption or Termination of Subservicing Agreements by Trustee.  (See
                               Section 3.06 of the Standard Terms)..............................................34

         Section 3.07          Collection of Certain Mortgage Loan Payments; Deposits to Custodial
                               Account..........................................................................34
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         Section 3.08          Subservicing Accounts; Servicing Accounts.  (See Section 3.08 of the
                               Standard Terms)..................................................................36

         Section 3.09          Access to Certain Documentation and Information Regarding the Mortgage
                               Loans.  (See Section 3.09 of the Standard Terms).................................36

         Section 3.10          Permitted Withdrawals from the Custodial Account.  (See Section 3.10 of
                               the Standard Terms)..............................................................36

         Section 3.11          Maintenance of the Primary Insurance Policies; Collections Thereunder.
                               (See Section 3.11 of the Standard Terms).........................................36

         Section 3.12          Maintenance of Fire Insurance and Omissions and Fidelity Coverage.  (See
                               Section 3.12 of the Standard Terms)..............................................36

         Section 3.13          Enforcement of Due-on-Sale Clauses; Assumption and Modification
                               Agreements; Certain Assignments.  (See Section 3.13 of the Standard Terms).......36

         Section 3.14          Realization Upon Defaulted Mortgage Loans.  (See Section 3.14 of the
                               Standard Terms)..................................................................36

         Section 3.15          Trustee to Cooperate; Release of Custodial Files.  (See Section 3.15 of
                               the Standard Terms)..............................................................36

         Section 3.16          Servicing and Other Compensation; Compensating Interest..........................36

         Section 3.17          Reports to the Trustee and the Company.  (See Section 3.17 of the
                               Standard Terms)..................................................................37

         Section 3.18          Annual Statement as to Compliance.  (See Section 3.18 of the Standard
                               Terms)...........................................................................37

         Section 3.19          Annual Independent Public Accountants' Servicing Report.  (See Section
                               3.19 of the Standard Terms)......................................................37

         Section 3.20          Rights of the Company in Respect of the Master Servicer.  (See Section
                               3.20 of the Standard Terms)......................................................37

         Section 3.21          Administration of Buydown Funds.  (See Section 3.21 of the Standard Terms).......37

         Section 3.22          Advance Facility.  (See Section 3.22 of the Standard Terms)......................37

ARTICLE IV            PAYMENTS TO CERTIFICATEHOLDERS............................................................38

         Section 4.01          Certificate Account.  (See Section 4.01 of the Standard Terms)...................38

         Section 4.02          Distributions....................................................................38

         Section 4.03          Statements to Certificateholders; Statements to Rating Agencies; Exchange
                               Act Reporting.  (See Section 4.03 of the Standard Terms) and Exhibit
                               Three hereto)....................................................................46
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         Section 4.04          Distribution of Reports to the Trustee and the Company; Advances by the
                               Master Servicer.  (See Section 4.04 of the Standard Terms).......................46

         Section 4.05          Allocation of Realized Losses....................................................47

         Section 4.06          Reports of Foreclosures and Abandonment of Mortgaged Property.  (See
                               Section 4.06 of the Standard Terms)..............................................49

         Section 4.07          Optional Purchase of Defaulted Mortgage Loans.  (See Section 4.07 of the
                               Standard Terms)..................................................................49

         Section 4.08          Surety Bond.  (See Section 4.08 of the Standard Terms)...........................49

         Section 4.09          Class P Reserve Account..........................................................49

ARTICLE V                                                                                                       50

ARTICLE VI            THE COMPANY AND THE MASTER SERVICER (SEE ARTICLE VI OF THE STANDARD TERMS)................54

ARTICLE VII           DEFAULT (SEE ARTICLE VII OF THE STANDARD TERMS)...........................................55

ARTICLE VIII          CONCERNING THE TRUSTEE (SEE ARTICLE VIII OF THE STANDARD TERMS)...........................56

ARTICLE IX            TERMINATION OR OPTIONAL PURCHASE OF ALL CERTIFICATES
                      (SEE ARTICLE IX OF THE STANDARD TERMS)....................................................57

ARTICLE X             REMIC PROVISIONS..........................................................................58

         Section 10.01         REMIC Administration.  (See Section 10.01 of the Standard Terms).................58

         Section 10.02         Master Servicer; REMIC Administrator and Trustee Indemnification.  (See
                               Section 10.02 of the Standard Terms).............................................58

         Section 10.03         Designation of REMIC(s)..........................................................58

         Section 10.04         Distributions on the Uncertificated REMIC I Regular Interests,
                               Uncertificated REMIC II Regular Interests and Uncertificated REMIC II
                               Regular Interests Z..............................................................58

         Section 10.05         Compliance with Withholding Requirements.........................................61

ARTICLE XI            MISCELLANEOUS PROVISIONS..................................................................62

         Section 11.01         Amendment.  (See Section 11.01 of the Standard Terms)............................62

         Section 11.02         Recordation of Agreement, Counterparts.  (See Section 11.02 of the
                               Standard Terms)..................................................................62
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         Section 11.03         Limitation on Rights of Certificateholders.  (See Section 11.03 of the
                               Standard Terms)..................................................................62

         Section 11.04         Governing Laws.  (See Section 11.04 of the Standard Terms).......................62

         Section 11.05         Notices..........................................................................62

         Section 11.06         Required Notices to Rating Agency and Subservicer.  (See Section 11.06 of
                               the Standard Terms)..............................................................63

         Section 11.07         Severability of Provisions.  (See Section 11.07 of the Standard Terms)...........63

         Section 11.08         Supplemental Provisions for Resecuritization.  (See Section 11.08 of the
                               Standard Terms)..................................................................63

         Section 11.09         Allocation of Voting Rights......................................................63

         Section 11.10         No Petition.  (See Section 11.10 of the Standard Terms)..........................63

ARTICLE XII           COMPLIANCE WITH REGULATION AB (SEE
                      ARTICLE XII OF THE STANDARD TERMS)........................................................64
</TABLE>

                                      -iv-
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
EXHIBITS
--------
<S>                   <C>
Exhibit One-I:        Mortgage Loan Schedule (Group I Loans)
Exhibit One-II:       Mortgage Loan Schedule (Group II Loans)
Exhibit Two-I:        Schedule of Discount Fractions for Group I Loans
Exhibit Two-II:       Schedule of Discount Fractions for Group II Loans
Exhibit Three:        Information to be Included in Monthly Distribution Date Statement
Exhibit Four:         Standard Terms of Pooling and Servicing Agreement dated as
                      of  July 1, 2007
</TABLE>

                                      -v-

<PAGE>

     This is a Series  Supplement,  dated as of  August  1,  2007  (the  "SERIES
SUPPLEMENT"), to the Standard Terms of Pooling and Servicing Agreement, dated as
of July 1, 2007 and attached as Exhibit Four hereto (the  "STANDARD  TERMS" and,
together with this Series Supplement,  the "POOLING AND SERVICING  AGREEMENT" or
"AGREEMENT"),  among  RESIDENTIAL  FUNDING  MORTGAGE  SECURITIES I, INC., as the
company  (together with its permitted  successors and assigns,  the  "COMPANY"),
RESIDENTIAL  FUNDING  COMPANY,  LLC,  as  master  servicer  (together  with  its
permitted successors and assigns, the "MASTER SERVICER"), and U.S. BANK NATIONAL
ASSOCIATION, as Trustee (together with its permitted successors and assigns, the
"TRUSTEE").

                              PRELIMINARY STATEMENT

     The   Company   intends   to  sell   Mortgage   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.  As  provided  herein,  the REMIC  Administrator  will make an
election  to  treat  the  entire  segregated  pool of  assets  described  in the
definition of Trust Fund, and subject to this Agreement  (including the Mortgage
Loans but excluding the Initial Monthly Payment Fund and amounts,  including the
prepayment charges, to which the Class P Certificates are entitled), as two real
estate  mortgage  investment  conduits  (each a "REMIC") for federal  income tax
purposes.

     The terms and provisions of the Standard Terms are hereby  incorporated  by
reference  herein as though set forth in full  herein.  If any term or provision
contained  herein shall  conflict  with or be  inconsistent  with any  provision
contained  in the  Standard  Terms,  the terms  and  provisions  of this  Series
Supplement  shall govern.  Any  cross-reference  to a section of the Pooling and
Servicing  Agreement,  to the extent the terms of the Standard  Terms and Series
Supplement conflict with respect to that section,  shall be a cross-reference to
the  related  section  of the  Series  Supplement.  All  capitalized  terms  not
otherwise  defined  herein  shall have the  meanings  set forth in the  Standard
Terms. The Pooling and Servicing  Agreement shall be dated as of the date of the
Series Supplement.

     The following table sets forth the designation,  type,  Pass-Through  Rate,
aggregate Initial Certificate Principal Balance,  Maturity Date, initial ratings
and certain features for each Class of Certificates  comprising the interests in
the Trust Fund created hereunder.

<PAGE>

<TABLE>
<CAPTION>
                               AGGREGATE
                                INITIAL
                   PASS-      CERTIFICATE
                  THROUGH      PRINCIPAL                                              MATURITY                          MINIMUM
  DESIGNATION      RATE         BALANCE                FEATURES(1)                      DATE          S&P/FITCH     DENOMINATIONS(2)
  -----------     -------     -----------              -----------                    --------        ---------     ----------------
<S>             <C>        <C>             <C>                                    <C>                 <C>            <C>
  Class I-A-1      6.00%      $393,148,400        Super Senior/Fixed Rate          September 2037      AAA/AAA        $100,000.00
  Class I-A-2      6.00%      $15,980,600        Senior Support/Fixed Rate         September 2037      AAA/AAA        $100,000.00
 Class II-A-1      5.50%      $57,862,300         Super Senior/Fixed Rate          September 2022      AAA/AAA        $100,000.00
 Class II-A-2      5.50%       $2,349,700        Senior Support/Fixed Rate         September 2022      AAA/AAA        $100,000.00
  Class I-A-P      0.00%       $1,038,900          Senior/Principal Only           September 2037      AAA/AAA        $100,000.00
                 Variable
  Class I-A-V    Rate(3)       Notional(4)   Senior/Interest Only/Variable Rate    September 2037      AAA/AAA       $2,000,000.00
 Class II-A-P      0.00%        $95,189            Senior/Principal Only           September 2022      AAA/AAA        $100,000.00
                 Variable
 Class II-A-V     Rate(4)      Notional(5)   Senior/Interest Only/Variable Rate    September 2022      AAA/AAA       $2,000,000.00
   Class R-I       6.00%          $100           Senior/Residual/Fixed Rate        September 2037      AAA/AAA            (5)
  Class R-II       5.50%          $100           Senior/Residual/Fixed Rate        September 2037      AAA/AAA            (5)
                 Variable
   Class M-1     Rate(6)       $8,065,400         Mezzanine/Variable Rate          September 2037       AA/AA         $100,000.00
                 Variable
   Class M-2      Rate(6)      $3,421,600         Mezzanine/Variable Rate          September 2037        A/A          $250,000.00
                 Variable
   Class M-3      Rate(6)      $2,199,700         Mezzanine/Variable Rate          September 2037      BBB/BBB        $250,000.00
    Class P        0.00%          $100            Senior/Prepayment Charge         September 2037      AAA/AAA          $100.00
                 Variable
   Class B-1      Rate(6)      $1,955,200        Subordinate/Variable Rate         September 2037       BB/BB         $250,000.00
                 Variable
</TABLE>

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

     (1)  The  Certificates,  other  than the Class B and  Class R  Certificates
          shall be Book-Entry  Certificates.  The Class B  Certificates  and the
          Class R  Certificates  shall be  delivered  to the holders  thereof in
          physical form.

     (2)  The  Certificates,  other  than  the  Class R  Certificates,  shall be
          issuable  in  minimum  dollar  denominations  as  indicated  above (by
          Certificate  Principal  Balance or Notional Amount, as applicable) and
          integral  multiples  of $1 (or  $1,000 in the case of the  Class  B-1,
          Class B-2 and Class B-3  Certificates) in excess thereof,  except that
          one  Certificate  of any of the  Class  B-1,  Class  B-2 and Class B-3
          Certificates that contain an uneven multiple of $1,000 shall be issued
          in a denomination equal to the sum of the related minimum denomination
          set forth above and such uneven  multiple for such Class or the sum of
          such denomination and an integral multiple of $1,000.

     (3)  The  initial  Pass-Through  Rate on the Class  I-A-V  Certificates  is
          0.3727%  and  the  initial  Pass-Through  Rate  on  the  Class  II-A-V
          Certificates is 0.3080%.

     (4)  The Class I-A-V Certificates and Class II-A-V Certificates each do not
          have a certificate  principal balance.  For the purpose of calculating
          interest payments, interest will accrue on a notional amount equal to,
          in the case of Class I-A-V Certificate, the aggregate stated principal
          balance of the  mortgage  loans in loan  group I,  which is  initially
          equal to approximately  $426,148,718,  and in the case of Class II-A-V
          Certificates,  the aggregate stated principal  balance of the mortgage
          loans in loan  group II,  which is  initially  equal to  approximately
          $62,657,115.

     (5)  The Class R Certificates shall be issuable in minimum denominations of
          not less than a 20% Percentage Interest;  PROVIDED,  HOWEVER, that one
          Class R Certificate  will be issuable to  Residential  Funding as "tax
          matters  person"  pursuant  to Section  10.01(c)  and (e) in a minimum
          denomination  representing  a  Percentage  Interest  of not less  than
          0.01%.

     (6)  The  pass-through  rate  on the  Class  M  Certificates  and  Class  B
          Certificates  is equal to the weighted  average of 6.00% per annum and
          5.50% per annum,  weighted on the basis of the portion of loan group I
          and  loan  group  II,   respectively,   represented  by  the  Class  M
          Certificates and Class B Certificates.  The  pass-through  rate on the
          Class M  Certificates  and Class B  Certificates  with  respect to the
          initial interest accrual period is approximately 5.93590% per annum.

                                      -2-
<PAGE>

<TABLE>
<CAPTION>
                               AGGREGATE
                                INITIAL
                   PASS-      CERTIFICATE
                  THROUGH      PRINCIPAL                                              MATURITY                          MINIMUM
  DESIGNATION      RATE         BALANCE                FEATURES(1)                      DATE          S&P/FITCH     DENOMINATIONS(2)
  -----------     -------     -----------              -----------                    --------        ---------     ----------------
<S>             <C>        <C>             <C>                                    <C>                 <C>            <C>

   Class B-2      Rate(7)      $1,710,800        Subordinate/Variable Rate         September 2037       B/NA          $250,000.00
                 Variable
   Class B-3      Rate(7)       $977,743         Subordinate/Variable Rate         September 2037       NA/NA         $250,000.00
</TABLE>

     The Group I Loans have an  aggregate  principal  balance as of the  Cut-off
Date of $426,148,718.  The Group II Loans have an aggregate principal balance as
of the  Cut-off  Date of  $62,657,115.  The  Mortgage  Loans  have an  aggregate
principal balance as of the Cut-off Date of $488,805,833.

     In consideration of the mutual agreements  herein  contained,  the Company,
the Master Servicer and the Trustee agree as follows:

                                      -3-
<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  meanings  specified  in this
Article.

     ACCRUED CERTIFICATE INTEREST: With respect to each Distribution Date, as to
any  Class  or  Subclass  of   Certificates   (other  than  any  Principal  Only
Certificates),  interest  accrued during the related  Interest Accrual Period at
the related  Pass-Through Rate on the Certificate  Principal Balance or Notional
Amount thereof  immediately prior to such Distribution Date. Accrued Certificate
Interest will be calculated on the basis of a 360-day year, consisting of twelve
30-day  months.  In each  case  Accrued  Certificate  Interest  on any  Class or
Subclass of Certificates will be reduced by the amount of:

     (i)    Prepayment  Interest  Shortfalls  (to the  extent  not offset by the
            Master Servicer with a payment of Compensating  Interest as provided
            in SECTION 4.01 of the Standard Terms),

     (ii)   the interest  portions of Realized Losses,  including Excess Special
            Hazard Losses,  Excess Fraud Losses,  Excess  Bankruptcy  Losses and
            Extraordinary Losses, not allocated through subordination;

     (iii)  the interest  portion of any Advances that were made with respect to
            delinquencies  that were ultimately  determined to be Excess Special
            Hazard  Losses,  Excess Fraud Losses,  Excess  Bankruptcy  Losses or
            Extraordinary Losses; and

     (iv)   any other  interest  shortfalls  not  covered  by the  subordination
            provided  by the  Class M  Certificates  and  Class B  Certificates,
            including  interest  that  is not  collectible  from  the  Mortgagor
            pursuant to the Relief Act, all allocated as described below.

The Class I-A Percentage of these  reductions  with respect to the Group I Loans
will be allocated  among the Holders of the Group I Senior  Certificates,  other
than the Class P and Class I-A-P  Certificates,  in proportion to the amounts of
Accrued Certificate  Interest that would have been payable to those Certificates
from the Group I Loans on that  Distribution  Date absent such  reductions.  The
Class II-A  Percentage  of these  reductions  with respect to the Group II Loans
will be allocated among the Holders of the Group II Senior  Certificates,  other
than the Class  II-A-P  Certificates,  in  proportion  to the amounts of Accrued
Certificate Interest that would have been payable to those Certificates from the
Group II Loans on that Distribution  Date absent such reductions.  The remainder
of  these  reductions  will  be  allocated  among  the  Holders  of the  Class M
Certificates  and the  Class B  Certificates  in  proportion  to the  respective
amounts of Accrued  Certificate  Interest  that would have been  payable on that
Distribution Date absent these reductions.  In the case of each Class of Class A
Certificates (other than the Principal-Only Certificates),  Class M Certificates
and Class B  Certificates,  Accrued  Certificate  Interest on that Class will be
further reduced by the interest  portion  (adjusted to the Net Mortgage Rate) of

                                      -4-
<PAGE>

Realized Losses that are allocated solely to such Class of Class A Certificates,
Class M Certificates or Class B Certificates pursuant to SECTION 4.05.

     AGGREGATE  AVAILABLE  DISTRIBUTION  AMOUNT:  With respect to a Distribution
Date,  the sum of the  Available  Distribution  Amounts for both Loan Groups for
such Distribution Date.

     AGGREGATE  CLASS A-P  PRINCIPAL  DISTRIBUTION  AMOUNT:  With  respect  to a
Distribution Date, the sum of the Class A-P Principal  Distribution  Amounts for
both Loan Groups for such Distribution Date.

     AGGREGATE  SENIOR  INTEREST   DISTRIBUTION   AMOUNT:   With  respect  to  a
Distribution Date, the sum of the Senior Interest  Distribution Amounts for both
Loan Groups for such Distribution Date.

     AGGREGATE  SENIOR  PRINCIPAL   DISTRIBUTION   AMOUNT:  With  respect  to  a
Distribution Date, the sum of the Senior Principal Distribution Amounts for both
Loan Groups for such Distribution Date.

     BANKRUPTCY  AMOUNT:  As of any date of  determination  prior  to the  first
anniversary  of the Cut-off Date, an amount equal to the excess,  if any, of (A)
$175,816, over (B) the aggregate amount of Bankruptcy Losses allocated solely to
one or more specific  Classes of Certificates in accordance with SECTION 4.05 of
this Series  Supplement.  As of any date of  determination on or after the first
anniversary of the Cut-off Date, an amount equal to the excess, if any, of:

          (1) the lesser of (a) the Bankruptcy Amount calculated as of the close
     of business  on the  Business  Day  immediately  preceding  the most recent
     anniversary of the Cut-off Date  coinciding  with or preceding such date of
     determination  (or, if such date of  determination is an anniversary of the
     Cut-off  Date,  the  Business  Day  immediately   preceding  such  date  of
     determination)   (for   purposes   of  this   definition,   the   "RELEVANT
     ANNIVERSARY") and (b) the greater of:

               (A) the  greater  of (i)  0.0006  times the  aggregate  principal
          balance  of all the  Mortgage  Loans  in the  Mortgage  Pool as of the
          Relevant Anniversary (other than Additional  Collateral Loans, if any)
          having a Loan-to-Value Ratio at origination which exceeds 75% and (ii)
          $175,816; and

               (B) the greater of (i) the product of (x) an amount  equal to the
          largest  difference in the related Monthly Payment for any Non-Primary
          Residence Loan  remaining in the Mortgage Pool (other than  Additional
          Collateral Loans, if any) which had an original Loan-to-Value Ratio of
          80% or greater that would result if the Net Mortgage  Rate thereof was
          equal to the weighted  average (based on the principal  balance of the
          Mortgage  Loans as of the  Relevant  Anniversary)  of the Net Mortgage
          Rates of all Mortgage Loans as of the Relevant  Anniversary less 1.25%
          per annum, (y) a number equal to the weighted  average  remaining term
          to maturity,  in months, of all Non-Primary  Residence Loans remaining
          in the Mortgage Pool as of the Relevant Anniversary,  and (z) one plus
          the  quotient  of  the  number  of  all  Non-Primary  Residence  Loans
          remaining in the Mortgage Pool

                                      -5-
<PAGE>

     divided by the total number of  Outstanding  Mortgage Loans in the Mortgage
     Pool as of the Relevant Anniversary, and (ii) $175,816,

          over

          (2) the aggregate amount of Bankruptcy  Losses allocated solely to one
     or more specific  Classes of  Certificates  in accordance with SECTION 4.05
     since the Relevant Anniversary.

     The  Bankruptcy  Amount  may be  further  reduced  by the  Master  Servicer
(including  accelerating the manner in which such coverage is reduced)  PROVIDED
that prior to any such  reduction,  the Master Servicer shall (i) obtain written
confirmation  from each Rating Agency that such  reduction  shall not reduce the
rating  assigned to any Class of  Certificates  by such Rating  Agency below the
lower of the then-current  rating or the rating assigned to such Certificates as
of the  Closing  Date by such  Rating  Agency  and (ii)  provide  a copy of such
written confirmation to the Trustee.

     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, the State of Michigan,
the  State of  California,  the  State  of  Illinois  or the  City of St.  Paul,
Minnesota (and such other state or states in which the Custodial  Account or the
Certificate  Account are at the time  located) are required or authorized by law
or executive order to be closed.

     CERTIFICATE: Any Class A, Class M, Class B, Class P or Class R Certificate.

     CERTIFICATE   ACCOUNT:   The  separate  account  or  accounts  created  and
maintained  pursuant  to SECTION  4.01 of the  Standard  Terms,  which  shall be
entitled  "U.S.  Bank  National  Association,  as  trustee,  in  trust  for  the
registered holders of Residential  Funding Mortgage Securities I, Inc., Mortgage
Pass-Through  Certificates,  Series  2007-S8"  and  which  must  be an  Eligible
Account.

     CERTIFICATE  GROUP:  With  respect  to (i) Loan Group I, the Group I Senior
Certificates; and (ii) Loan Group II, the Group II Senior Certificates.

     CERTIFICATE PRINCIPAL BALANCE: With respect to each Certificate (other than
any Interest Only  Certificate),  on any date of determination,  an amount equal
to:

     (i)    the Initial  Certificate  Principal  Balance of such  Certificate as
            specified on the face thereof, plus

     (ii)   any Subsequent Recoveries added to the Certificate Principal Balance
            of such Certificate pursuant to SECTION 4.02, minus

     (iii)  the sum of (x) the aggregate of all amounts  previously  distributed
            with respect to such  Certificate (or any  predecessor  Certificate)
            and  applied to reduce the  Certificate  Principal  Balance  thereof
            pursuant to SECTION  4.02(A) and (Y) the aggregate of all reductions
            in  Certificate   Principal  Balance  deemed  to  have  occurred  in
            connection with Realized  Losses which were previously  allocated to
            such  Certificate  (or  any  predecessor  Certificate)  pursuant  to
            SECTION 4.05;

                                      -6-
<PAGE>

provided,  that the  Certificate  Principal  Balance of the Class of Subordinate
Certificates with the Lowest Priority at any given time shall be further reduced
by an amount equal to the  Percentage  Interest  evidenced  by such  Certificate
multiplied  by the  excess,  if  any,  of (A)  the  then  aggregate  Certificate
Principal  Balance of all Classes of Certificates  then outstanding over (B) the
then aggregate Stated Principal Balance of the Mortgage Loans.

     CLASS A CERTIFICATE: Any Class I-A or Class II-A Certificate

     CLASS A-P CERTIFICATES:  The Class I-A-P Certificates,  which relate to and
are payable from the Group I Loans, and Class II-A-P Certificates,  which relate
to and are payable from the Group II Loans.

     CLASS A-P COLLECTION SHORTFALL: With respect to the Cash Liquidation or REO
Disposition  of a Discount  Mortgage Loan,  any  Distribution  Date and any Loan
Group,  the extent to which the amount described in clause (C) of the definition
of Class A-P Principal  Distribution Amount for such Loan Group is less than the
amount described in clause (C)(1) of such definition.

     CLASS A-P PRINCIPAL  DISTRIBUTION  AMOUNT: With respect to any Distribution
Date and each Loan Group, an amount equal to the aggregate of:

          (A) the related  Discount  Fraction of the  principal  portion of each
     Monthly  Payment on each  Discount  Mortgage Loan in the related Loan Group
     due during the related Due Period,  whether or not  received on or prior to
     the  related  Determination  Date,  minus  the  Discount  Fraction  of  the
     principal portion of any related Debt Service Reduction which together with
     other  Bankruptcy   Losses  on  the  related  Mortgage  Loans  exceeds  the
     Bankruptcy Amount for that Loan Group;

          (B) the  related  Discount  Fraction of the  principal  portion of all
     unscheduled  collections on each Discount Mortgage Loan in the related Loan
     Group  received  during  the  preceding  calendar  month or, in the case of
     Principal  Prepayments in Full, during the related Prepayment Period (other
     than  amounts  received  in  connection  with  a  Cash  Liquidation  or REO
     Disposition of a Discount Mortgage Loan in the related Loan Group described
     in  CLAUSE  (C)   below),   including   Principal   Prepayments   in  Full,
     Curtailments,  Subsequent  Recoveries  and  repurchases  (including  deemed
     repurchases  under  SECTION  3.07(B)  of the  Standard  Terms) of  Discount
     Mortgage Loans in the related Loan Group (or, in the case of a substitution
     of a Deleted Mortgage Loan in the related Loan Group, the Discount Fraction
     of the  amount of any  shortfall  deposited  in the  Custodial  Account  in
     connection with such substitution);

          (C) in connection  with the Cash  Liquidation or REO  Disposition of a
     Discount Mortgage Loan in the related Loan Group that did not result in any
     Excess Special Hazard Losses, Excess Fraud Losses, Excess Bankruptcy Losses
     or  Extraordinary  Losses,  an  amount  equal  to the  lesser  of  (1)  the
     applicable  Discount  Fraction  of the  Stated  Principal  Balance  of such
     Discount  Mortgage Loan immediately prior to such Distribution Date and (2)
     the aggregate  amount of the collections on such Discount  Mortgage Loan to
     the extent applied as recoveries of principal;

                                      -7-
<PAGE>

          (D) any amounts  allocable to principal for the related Loan Group for
     any previous  Distribution Date (calculated pursuant to CLAUSES (A) through
     (C) above) that remain undistributed; and

          (E) the amount of the related Class A-P Collection Shortfalls for such
     Distribution Date and Loan Group and the amount of any Class A-P Collection
     Shortfalls  remaining unpaid for all previous  Distribution Dates, but only
     to the extent of the  Eligible  Funds for the  related  Loan Group for such
     Distribution Date; minus

          (F) the Discount Fraction of the related Capitalization  Reimbursement
     Amount for the  related  Loan  Group for such  Distribution  Date,  if any,
     related to each Discount Mortgage Loan in the related Loan Group.

     CLASS A-V CERTIFICATES:  The Class I-A-V Certificates,  which relate to and
are payable from the Group I Loans, and Class II-A-V Certificates,  which relate
to and are payable from the Group II Loans.

     CLASS I-A  CERTIFICATES:  Any one of the Class I-A-1,  Class  I-A-2,  Class
I-A-P or Class I-A-V Certificates,  executed by the Trustee and authenticated by
the  Certificate  Registrar  substantially  in the form  annexed to the Standard
Terms as Exhibit A.

     CLASS I-A PERCENTAGE: With respect to any Distribution Date, the percentage
equal to the  aggregate  Certificate  Principal  Balance  of the  Group I Senior
Certificates, other than the Class I-A-P Certificates, immediately prior to that
Distribution  Date divided by the aggregate Stated  Principal  Balance of all of
the Mortgage  Loans (or related REO  Properties) in Loan Group I, other than the
Discount  Fraction of the Discount  Mortgage Loans in Loan Group I,  immediately
prior to that  Distribution  Date. The Class I-A Percentage will initially equal
approximately 96.24% and will in no event exceed 100%.

     CLASS II-A CERTIFICATES:  Any one of the Class II-A-1,  Class II-A-2, Class
II-A-P and Class II-A-V Certificates,  executed by the Trustee and authenticated
by the Certificate  Registrar  substantially in the form annexed to the Standard
Terms as Exhibit A.

     CLASS  II-A  PERCENTAGE:   With  respect  to  any  Distribution  Date,  the
percentage equal to the aggregate  Certificate Principal Balance of the Group II
Senior Certificates, other than the Class II-A-P Certificates, immediately prior
to that  Distribution  Date divided by the aggregate Stated Principal Balance of
all of the Mortgage  Loans (or related REO  Properties)  in Loan Group II, other
than the  Discount  Fraction of the  Discount  Mortgage  Loans in Loan Group II,
immediately  prior to that  Distribution  Date. The Class II-A  Percentage  will
initially equal approximately 96.24% and will in no event exceed 100%.

     CLASS P CERTIFICATE:  Any one of the Class P  Certificates  executed by the
Trustee and authenticated by the Certificate Registrar substantially in the form
annexed  to the  Standard  Terms as  Exhibit  C-1 and  evidencing  a  percentage
interest in any Prepayment Charges.

     CLASS P RESERVE  ACCOUNT:  The account  established  and  maintained by the
Trustee pursuant to SECTION 4.09 hereof. The Class P Reserve Account will not be
part of any REMIC hereunder.

                                      -8-
<PAGE>

     CLASS R CERTIFICATE: Any one of the Class R-I and Class R-II Certificates.

     CLASS R-I CERTIFICATE:  Any one of the Class R-I  Certificates  executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form  annexed to the  Standard  Terms as Exhibit D and  evidencing  an  interest
designated  as a  "residual  interest"  in  REMIC I for  purposes  of the  REMIC
Provisions.

     CLASS R-II CERTIFICATE:  Any one of the Class R-II Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form  annexed to the  Standard  Terms as Exhibit D and  evidencing  an  interest
designated  as a  "residual  interest"  in REMIC II for  purposes  of the  REMIC
Provisions.

     CLOSING DATE: August 24, 2007.

     CORPORATE TRUST OFFICE: The principal office of the Trustee 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  U.S.  Bank  National  Association,   EP-MN-WS3D,  60
Livingston   Avenue,   St.  Paul,   Minnesota   55107,   Attention:   Structured
Finance/RFMSI 2007-S8.

     CREDIT SUPPORT  DEPLETION  DATE: The first  Distribution  Date on which the
aggregate  Certificate  Principal  Balance of the Class M  Certificates  and the
Class B Certificates have been reduced to zero.

     CUT-OFF DATE: August 1, 2007.

     DETERMINATION  DATE:  With  respect to any  Distribution  Date,  the second
Business Day prior to such Distribution Date.

     DISCOUNT  FRACTION:  With respect to each  Discount  Mortgage  Loan in Loan
Group I, a fraction  expressed as a percentage,  the numerator of which is 6.00%
minus the Net Mortgage Rate for such Discount  Mortgage Loan and the denominator
of which is 6.00%.  The Class  I-A-P  Certificates  will be entitled to payments
based on the Discount  Fraction of the Discount  Mortgage Loans in Loan Group I.
With  respect  to each  Discount  Mortgage  Loan in Loan  Group  II, a  fraction
expressed  as a  percentage,  the  numerator  of which is  5.50%  minus  the Net
Mortgage Rate for such Discount  Mortgage Loan and the  denominator  of which is
5.50%. The Class II-A-P  Certificates  will be entitled to payments based on the
Discount Fraction of the Discount Mortgage Loans in Loan Group II.

     DISCOUNT MORTGAGE LOAN: With respect to (i) Loan Group I, any Mortgage Loan
with a Net  Mortgage  Rate less that  6.00% per annum or (ii) Loan Group II, any
Mortgage Loan with a Net Mortgage Rate less than 5.50% per annum.

     DISCOUNT NET MORTGAGE  RATE:  With respect to Loan Group I, 6.00% per annum
and, with respect to Loan Group II, 5.50% per annum.

     DUE PERIOD:  With respect to each  Distribution Date and any Mortgage Loan,
the calendar month of such Distribution Date.

                                      -9-
<PAGE>

     ELIGIBLE FUNDS:  With respect to any Distribution  Date and Loan Group, the
portion, if any, of (a) the Available Distribution Amount for such Loan Group or
Aggregate Available Distribution Amount, as applicable,  over (b) the sum of (i)
the  aggregate  amount of Accrued  Certificate  Interest on the  related  Senior
Certificates or Aggregate Senior Interest  Distribution  Amount,  as applicable,
(ii) the  related  Senior  Principal  Distribution  Amount or  Aggregate  Senior
Principal  Distribution Amount, as applicable (both determined without regard to
SECTION  4.02(A)(II)(Z)(F)  of this Series Supplement),  (iii) the related Class
A-P Principal  Distribution Amount or Aggregate Class A-P Principal Distribution
Amount,  as  applicable  (both  determined  without  regard to clause (E) of the
definition  of Class A-P Principal  Distribution  Amount) and (iv) the aggregate
amount of Accrued  Certificate  Interest on the Class M, Class B-1 and Class B-2
Certificates,  as  applicable.  In the event  there  are  Class  A-P  Shortfalls
remaining for both Loan Groups on any Distribution Date, the Eligible Funds will
be allocated to each Loan Group,  pro rata,  based on the aggregate unpaid Class
A-P Shortfalls for each Loan Group.

     EXCESS  BANKRUPTCY  LOSSES:  Bankruptcy  Losses in  excess  of the  related
Bankruptcy Amount.

     EXCESS  FRAUD  LOSSES:  Fraud  Losses in excess of the  related  Fraud Loss
Amount.

     EXCESS  SPECIAL  HAZARD  LOSSES:  Special  Hazard  Losses  in excess of the
related Special Hazard Amount.

     EXCESS SUBORDINATE  PRINCIPAL AMOUNT: With respect to any Distribution Date
and each Loan Group, on which the aggregate Certificate Principal Balance of the
Class of  Subordinate  Certificates  issued in connection  with the related Loan
Group, then outstanding with the Lowest Priority is to be reduced to zero and on
which Realized Losses are to be allocated to such class or classes,  the excess,
if any, of (i) the amount that would  otherwise be  distributable  in respect of
principal on such class or classes of  Certificates  on such  Distribution  Date
over (ii) the excess, if any, of the aggregate  Certificate Principal Balance of
such class or classes of  Certificates  immediately  prior to such  Distribution
Date over the  aggregate  amount of  Realized  Losses  to be  allocated  to such
classes  of  Certificates  on such  Distribution  Date as  reduced by any amount
calculated  pursuant  to clause  (E) of the  definition  of Class A-P  Principal
Distribution  Amount. The Excess Subordinate  Principal Amount will be allocated
among the Loan  Groups,  on a pro rata  basis,  based on the amount of  Realized
Losses on the Mortgage Loans in each Loan Group allocated to the Certificates on
that Distribution Date.

     FRAUD LOSS AMOUNT: As of any date of determination  after the Cut-off Date,
an amount equal to: (X) prior to the second  anniversary of the Cut-off Date, an
amount equal to 1.00% of the aggregate  outstanding  principal balance of all of
the Mortgage  Loans as of the Cut-off Date minus the  aggregate  amount of Fraud
Losses  allocated  solely to one or more  specific  Classes of  Certificates  in
accordance with SECTION 4.05 of this Series Supplement since the Cut-off Date up
to such date of determination and (Y) from the third to the fifth anniversary of
the Cut-off Date, an amount equal to (1) the lesser of (a) the Fraud Loss Amount
as of the most  recent  anniversary  of the  Cut-off  Date and (b)  0.50% of the
aggregate  outstanding  principal balance of all of the Mortgage Loans as of the
most recent  anniversary  of the Cut-off Date minus (2) the aggregate  amount of
Fraud Losses allocated solely to one or more specific Classes of Certificates in
accordance  with  SECTION 4.05 of this Series  Supplement  since the most recent
anniversary of the Cut-off Date up to such date of  determination.  On and after
the fifth anniversary of the

                                      -10-
<PAGE>

Cut-off Date, the Fraud Loss Amount shall be zero.

     The Fraud  Loss  Amount  may be  further  reduced  by the  Master  Servicer
(including  accelerating the manner in which such coverage is reduced)  PROVIDED
that prior to any such  reduction,  the Master Servicer shall (i) obtain written
confirmation  from each Rating Agency that such  reduction  shall not reduce the
rating  assigned to any Class of  Certificates  by such Rating  Agency below the
lower of the then-current  rating or the rating assigned to such Certificates as
of the  Closing  Date by such  Rating  Agency  and (ii)  provide  a copy of such
written confirmation to the Trustee.

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

     GROUP I SENIOR  CERTIFICATES:  The Class I-A-1,  Class I-A-2,  Class I-A-V,
Class I-A-P, Class P and Class R-I Certificates, which relate to and are payable
from the Group I Loans.

     GROUP I SUBORDINATE COMPONENT: On any date of determination,  the excess of
the aggregate Stated Principal Balance of the Group I Loans as of such date over
the aggregate  Certificate  Principal Balance of the Group I Senior Certificates
(other than the Interest Only Certificates) then outstanding.

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

     GROUP II SENIOR CERTIFICATES: The Class II-A-1, Class II-A-2, Class II-A-P,
Class II-A-V and Class R-II  Certificates,  which relate to and are payable from
the Group II Loans.

     GROUP II SUBORDINATE COMPONENT: On any date of determination, the excess of
the  aggregate  Stated  Principal  Balance of the Group II Loans as of such date
over  the  aggregate  Certificate  Principal  Balance  of the  Group  II  Senior
Certificates (other than the Interest Only Certificates) then outstanding.

     INITIAL   MONTHLY  PAYMENT  FUND:  With  respect  to  the  Group  I  Loans,
$110,451.21  representing  scheduled principal  amortization and interest at the
Net Mortgage  Rate during the month of August 2007,  for those Group I Loans for
which the Trustee  will not be entitled to receive  such  payment in  accordance
with the definition of "Trust Fund".  The Initial  Monthly Payment fund will not
be part of any REMIC.

     INITIAL  NOTIONAL AMOUNT:  With respect to any Class I-A-V  Certificates or
Subclass  thereof issued pursuant to SECTION 5.01(C) of the Standard Terms,  the
aggregate  Cut-off Date Principal  Balance of the Mortgage Loans relating to the
Uncertificated   REMIC  I  Regular  Interests  Z1,  and   correspondingly,   the
Uncertificated  REMIC II Regular  Interests Z1,  corresponding  to such Class or
Subclass on such date. With respect to any Class II-A-V Certificates or Subclass
thereof issued pursuant to SECTION 5.01(C) of the Standard Terms,  the aggregate
Cut-off  Date   Principal   Balance  of  the  Mortgage  Loans  relating  to  the
Uncertificated   REMIC  I  Regular  Interests  Z2,  and   correspondingly,   the
Uncertificated  REMIC II Regular  Interests Z2,  corresponding  to such Class or
Subclass on such date.

                                      -11-
<PAGE>

     INITIAL  SUBORDINATE  CLASS  PERCENTAGE:  With  respect  to each  Class  of
Subordinate  Certificates,  an amount  which is equal to the  initial  aggregate
Certificate Principal Balance of such Class of Subordinate  Certificates divided
by the aggregate  Stated  Principal  Balance of all the Mortgage Loans as of the
Cut-off Date as follows:

         Class M-1:  1.65%          Class B-1: 0.40%
         Class M-2:  0.70%          Class B-2: 0.35%
         Class M-3:  0.45%          Class B-3: 0.20%

     INTEREST ACCRUAL PERIOD:  With respect to any Class of Certificates and any
Distribution  Date,  the  calendar  month  preceding  the  month in  which  such
Distribution Date occurs.

     INTEREST  ONLY  CERTIFICATES:  Any one of the Class A-V  Certificates.  The
Interest Only Certificates will have no Certificate Principal Balance.

     LOAN GROUP: Either of Loan Group I or Loan Group II.

     LOAN GROUP I: The group of Mortgage Loans comprised of the Group I Loans.

     LOAN GROUP II: The group of Mortgage Loans comprised of the Group II Loans.

     MATURITY  DATE:  With  respect to  Certificates  in the  Certificate  Group
related to Loan Group I, the  Distribution  Date in September 2037, which is the
Distribution  Date in the  month  immediately  following  the  latest  scheduled
maturity date of any Mortgage Loan in Loan Group I. With respect to Certificates
in the  Certificate  Group  related to Loan Group II, the  Distribution  Date in
September  2022,  which  is the  Distribution  Date  immediately  in  the  month
following the latest scheduled  maturity date of any Mortgage Loan in Loan Group
II.

     MORTGAGE LOAN  SCHEDULE:  The list or lists of the Mortgage  Loans attached
hereto as Exhibit One-I (with respect to Loan Group I) and Exhibit  One-II (with
respect to Loan Group II) (in each case, as amended from time to time to reflect
the addition of Qualified  Substitute Mortgage Loans), which list or lists shall
set forth the following information as to each Mortgage Loan in the related Loan
Group:

     (a)  the Mortgage Loan identifying number ("RFC LOAN #");
     (b)  the maturity of the Mortgage Note ("MATURITY DATE");
     (c)  the Mortgage Rate ("ORIG RATE");
     (d)  the Subservicer pass-through rate ("CURR NET");
     (e)  the Net Mortgage Rate ("NET MTG RT");
     (f)  the Pool Strip Rate ("STRIP");
     (g)  the  initial  scheduled  monthly  payment of  principal,  if any,  and
          interest ("ORIGINAL P & I");
     (h)  the Cut-off Date Principal Balance ("PRINCIPAL BAL");
     (i)  the Loan-to-Value Ratio at origination ("LTV");
     (j)  the rate at which the  Subservicing  Fee accrues  ("SUBSERV  FEE") and
          at which the Servicing Fee accrues ("MSTR SERV FEE");
     (k)  a code "T," "BT" or "CT"  under the column  "LN  FEATURE,"  indicating
          that the Mortgage Loan is secured by a second or vacation residence;

                                      -12-
<PAGE>

     (l)  a code "N" under the column "OCCP CODE,"  indicating that the Mortgage
          Loan is secured by a non-owner occupied residence; and
     (m)  a code "Y" under the column "PREPAY PENALTY IND,"  indicating that the
          Mortgage Loan is a Prepayment Charge Loan.

Such schedule may consist of multiple reports that collectively set forth all of
the information required.

     NON-DISCOUNT  MORTGAGE  LOAN:  The  Mortgage  Loans other than the Discount
Mortgage Loans.

     NOTIONAL  AMOUNT:  As of any  Distribution  Date with  respect to any Class
I-A-V Certificates, an amount equal to the aggregate Stated Principal Balance of
the Group I Loans as of the day  immediately  preceding such  Distribution  Date
(or, with respect to the initial  Distribution Date, at the close of business on
the Cut-off Date). For federal income tax purposes, as of any Distribution Date,
with respect to any Class I-A-V Certificates or Subclass thereof issued pursuant
to SECTION 5.01(C) of the Standard Terms, the aggregate Stated Principal Balance
of the  Group I  Loans  corresponding  to the  Uncertificated  REMIC  I  Regular
Interests Z1, and correspondingly, the Uncertificated REMIC II Regular Interests
Z1, corresponding to such Class or Subclass as of the day immediately  preceding
such  Distribution Date (or, with respect to the initial  Distribution  Date, at
the close of business on the Cut-off  Date).  As of any  Distribution  Date with
respect  to any Class  II-A-V  Certificates,  an amount  equal to the  aggregate
Stated  Principal  Balance  of the  Group  II  Loans  as of the day  immediately
preceding such Distribution  Date (or, with respect to the initial  Distribution
Date,  at the close of  business on the Cut-off  Date).  For federal  income tax
purposes,  as of  any  Distribution  Date,  with  respect  to any  Class  II-A-V
Certificates  or Subclass  thereof  issued  pursuant  to SECTION  5.01(C) of the
Standard Terms,  the aggregate  Stated  Principal  Balance of the Group II Loans
corresponding  to  the   Uncertificated   REMIC  I  Regular  Interests  Z2,  and
correspondingly, the Uncertificated REMIC II Regular Interests Z2, corresponding
to such Class or Subclass as of the day immediately  preceding such Distribution
Date  (or,  with  respect  to the  initial  Distribution  Date,  at the close of
business on the Cut-off Date).

     PASS-THROUGH RATE: With respect to the Class A Certificates (other than the
Class  A-V  Certificates  and  the  Principal  Only  Certificates)  and  Class R
Certificates  and any  Distribution  Date,  the per annum rates set forth in the
Preliminary   Statement  hereto.  With  respect  to  each  Class  of  Class  A-V
Certificates  (other than any Subclass  thereof) and any Distribution Date other
than the  initial  Distribution  Date,  a rate  equal to the  weighted  average,
expressed as a percentage,  of the Pool Strip Rates of all Mortgage Loans in the
related Loan Group as of the Due Date in the related Due Period, weighted on the
basis of the respective Stated Principal  Balances of such Mortgage Loans in the
related Loan Group as of the day immediately  preceding such Distribution  Date.
With respect to the Class I-A-V  Certificates and the Class II-A-V  Certificates
and the initial  Distribution  Date, the Pass-Through Rates are equal to 0.3727%
and 0.3080% per annum, respectively. With respect to any Subclass of Class I-A-V
Certificates  and any Distribution  Date, a rate equal to the weighted  average,
expressed  as a  percentage,  of the  Pool  Strip  Rates  of all  Group  I Loans
corresponding to the  Uncertificated  REMIC I Regular Interests Z1 corresponding
to the Uncertificated REMIC II Regular Interests Z1 represented by such Subclass
as of the Due Date in the  related  Due  Period,  weighted  on the  basis of the
respective

                                      -13-
<PAGE>

Stated  Principal  Balances  of such  Group I  Loans  as of the day  immediately
preceding such  Distribution  Date (or with respect to the initial  Distribution
Date,  at the close of  business  on the  Cut-Off  Date).  With  respect  to any
Subclass of Class II-A-V Certificates and any Distribution Date, a rate equal to
the weighted average,  expressed as a percentage, of the Pool Strip Rates of all
Group II Loans corresponding to the Uncertificated  REMIC I Regular Interests Z2
corresponding to the Uncertificated REMIC II Regular Interests Z2 represented by
such  Subclass as of the Due Date in the  related  Due  Period,  weighted on the
basis of the respective  Stated Principal  Balances of such Group II Loans as of
the day  immediately  preceding such  Distribution  Date (or with respect to the
initial  Distribution  Date, at the close of business on the Cut-Off Date).  The
Principal Only  Certificates  and the Class P Certificates  have no Pass-Through
Rate and are not entitled to Accrued Certificate Interest. The Pass-Through Rate
on the  Class  M  Certificates  and  Class  B  Certificates  as of any  date  of
determination  is equal to the weighted average of 6.00% per annum and 5.50% per
annum  weighted on the basis of the Group I  Subordinate  Component and Group II
Subordinate  Component,  respectively,  as of such  date of  determination.  For
federal  income tax  purposes,  however,  the  Pass-Through  Rate on the Class M
Certificates and Class B Certificates for any Distribution  Date is expressed as
a  per  annum  rate  equal  to  the  weighted  average  of  the   Uncertificated
Pass-Through Rates applicable to Uncertificated REMIC I Regular Interest I-X and
Uncertificated  REMIC I  Regular  Interest  II-X  weighted  on the  basis of the
Uncertificated  Principal Balances of each such  Uncertificated  REMIC I Regular
Interest immediately  preceding such Distribution Date. The Pass-Through Rate on
the Class M Certificates  and Class B  Certificates  with respect to the initial
Interest Accrual Period is approximately 5.93590% per annum.

     POOL  STRIP  RATE:  The pool strip rate on any Group I Loan is equal to its
Net Mortgage Rate minus 6.00%,  but not less than 0.00%.  The pool strip rate on
any Group II loan is equal to its Net Mortgage  Rate minus  5.50%,  but not less
than 0.00%.

     PREPAYMENT  ASSUMPTION:  With  respect  to each Loan  Group,  a  prepayment
assumption of 300% of the prepayment speed assumption,  used for determining the
accrual of  original  issue  discount  and market  discount  and  premium on the
related  Certificates  for federal  income tax purposes.  The  prepayment  speed
assumption  assumes a constant rate of prepayment of Mortgage  Loans of 0.2% per
annum of the then outstanding principal balance of the related Mortgage Loans in
the first month of the life of such Mortgage Loans,  increasing by an additional
0.2% per  annum in each  succeeding  month  until  the  thirtieth  month,  and a
constant 6% per annum rate of prepayment  thereafter for the life of the related
Mortgage Loans.

     PREPAYMENT CHARGE LOAN: Any Mortgage Loan for which a Prepayment Charge may
be assessed and to which such  Prepayment  Charge the Class P  Certificates  are
entitled, as indicated on the Mortgage Loan Schedule.

     PREPAYMENT DISTRIBUTION  PERCENTAGE:  With respect to any Distribution Date
and each Class of Subordinate  Certificates,  under the applicable circumstances
set forth below, the respective percentages set forth below:

     (i)    For  any  Distribution  Date  prior  to  the  Distribution  Date  in
            September  2012 (unless the  Certificate  Principal  Balances of the
            Senior  Certificates  (other than the Class A-P  Certificates)  have
            been reduced to zero), 0%.

     (ii)   For any Distribution Date for which CLAUSE (I) above does not apply,
            and on which any Class of  Subordinate  Certificates  is outstanding
            with a Certificate Principal Balance greater than zero:

                                      -14-
<PAGE>

                  (a) in the  case  of the  Class  of  Subordinate  Certificates
            then  outstanding  with the Highest Priority and each other Class of
            Subordinate   Certificates   for   which  the   related   Prepayment
            Distribution Trigger has been satisfied, a fraction,  expressed as a
            percentage,  the  numerator  of which is the  Certificate  Principal
            Balance  of  such  Class  immediately  prior  to such  date  and the
            denominator  of  which  is  the  sum of  the  Certificate  Principal
            Balances  immediately  prior  to  such  date  of (1)  the  Class  of
            Subordinate  Certificates then outstanding with the Highest Priority
            and (2) all other Classes of Subordinate  Certificates for which the
            respective Prepayment Distribution Triggers have been satisfied; and

                  (b)  in   the   case   of  each  other  Class  of  Subordinate
            Certificates for which the Prepayment Distribution Triggers have not
            been satisfied, 0%; and

     (iii)  Notwithstanding  the foregoing,  if the application of the foregoing
            percentages on any Distribution  Date as provided in SECTION 4.02 of
            this Series Supplement  (determined without regard to the proviso to
            the definition of "Subordinate Principal Distribution Amount") would
            result in a  distribution  in respect of  principal  of any Class or
            Classes of  Subordinate  Certificates  in an amount greater than the
            remaining  Certificate  Principal Balance thereof (any such class, a
            "MATURING CLASS"), then: (a) the Prepayment  Distribution Percentage
            of each  Maturing  Class  shall be  reduced  to a level  that,  when
            applied as described  above,  would exactly  reduce the  Certificate
            Principal  Balance  of  such  Class  to  zero;  (b)  the  Prepayment
            Distribution   Percentage   of  each  other  Class  of   Subordinate
            Certificates  (any such  Class,  a  "NON-MATURING  CLASS")  shall be
            recalculated  in accordance  with the  provisions in paragraph  (ii)
            above,  as if the  Certificate  Principal  Balance of each  Maturing
            Class had been reduced to zero (such percentage as recalculated, the
            "RECALCULATED  PERCENTAGE");  (c) the total amount of the reductions
            in the Prepayment Distribution  Percentages of the Maturing Class or
            Classes  pursuant to CLAUSE (A) of this  sentence,  expressed  as an
            aggregate  percentage,  shall be  allocated  among the  Non-Maturing
            Classes in proportion to their respective  Recalculated  Percentages
            (the  portion  of  such  aggregate  reduction  so  allocated  to any
            Non-Maturing  Class,  the  "ADJUSTMENT  PERCENTAGE");  and  (d)  for
            purposes of such  Distribution  Date,  the  Prepayment  Distribution
            Percentage of each  Non-Maturing  Class shall be equal to the sum of
            (1) the Prepayment  Distribution  Percentage thereof,  calculated in
            accordance  with the  provisions  in paragraph  (ii) above as if the
            Certificate  Principal  Balance of each Maturing  Class had not been
            reduced to zero, plus (2) the related Adjustment Percentage.

     PRINCIPAL  ONLY  CERTIFICATES:  Any  one of  the  Class  A-P  Certificates.

     RECORD  DATE:  With  respect  to each  Distribution  Date and each Class of
Certificates,  the close of business on the last  Business Day of the month next
preceding the month in which the related Distribution Date occurs.

                                      -15-
<PAGE>

     RELATED CLASSES: As to any Uncertificated REMIC II Regular Interests Z, the
Class A-V Certificates or Subclass thereof issued pursuant to SECTION 5.01(C) of
the Standard Terms representing the Uncertificated  REMIC II Regular Interests Z
corresponding to such Uncertificated REMIC II Regular Interests Z.

     REMIC  I: The  segregated  pool of  assets  with  respect  to which a REMIC
election is to be made, consisting of:

     (i)    the Mortgage  Loans and the related  Mortgage  Files and  collateral
            securing such Mortgage Loans,

     (ii)   all payments and  collections  in respect of the Mortgage  Loans due
            after the Cut-off Date (other than Monthly Payments due in the month
            of the Cut-off Date, amounts in the Initial Monthly Payment Fund and
            amounts,  including  the  prepayment  charges,  to which the Class P
            Certificates  are  entitled) as shall be on deposit in the Custodial
            Account or in the Certificate Account and identified as belonging to
            the Trust Fund,

     (iii)  property  which  secured a Mortgage Loan and which has been acquired
            for the benefit of the  Certificateholders by foreclosure or deed in
            lieu of foreclosure,

     (iv)   the hazard insurance  policies and Primary  Insurance  Policies,  if
            any, related to the Mortgage Loans, and

     (v)    all proceeds of clauses (i) through (iv) above.

     REMIC I CERTIFICATES: The Class R-I Certificates.

     REMIC I SUBORDINATE  BALANCE RATIO: The ratio among the principal  balances
of  each of the  Uncertificated  REMIC  I  Regular  Interests  ending  with  the
designation "X," equal to the ratio among: (1) the Group I Subordinate Component
and (2) the Group II Subordinate Component.

     REMIC II:  The segregated pool of assets  consisting of the  Uncertificated
REMIC I Regular Interests, with respect to which a separate REMIC election is to
be made.

     REMIC II CERTIFICATES: The Class R-II Certificates.

     SENIOR   ACCELERATED   DISTRIBUTION   PERCENTAGE:   With   respect  to  any
Distribution  Date occurring on or prior to the 60th  Distribution  Date and any
Loan Group, 100%. With respect to any Distribution Date thereafter and such Loan
Group, as follows:

     (i)    for any Distribution Date after the 60th Distribution Date but on or
            prior to the 72nd  Distribution  Date, the related Senior Percentage
            for  such  Distribution  Date  plus 70% of the  related  Subordinate
            Percentage for such Distribution Date;

     (ii)   for any Distribution Date after the 72nd Distribution Date but on or
            prior to the 84th  Distribution  Date, the related Senior Percentage
            for  such  Distribution  Date  plus 60% of the  related  Subordinate
            Percentage for such Distribution Date;

     (iii)  for any Distribution Date after the 84th Distribution Date but on or
            prior to the 96th  Distribution  Date, the related Senior Percentage
            for  such  Distribution  Date  plus 40% of the  related  Subordinate
            Percentage for such Distribution Date;

                                      -16-
<PAGE>

     (iv)   for any Distribution Date after the 96th Distribution Date but on or
            prior to the 108th  Distribution Date, the related Senior Percentage
            for  such  Distribution  Date  plus 20% of the  related  Subordinate
            Percentage for such Distribution Date; and

     (v)    for any Distribution Date thereafter,  the related Senior Percentage
            for such Distribution Date;

PROVIDED, HOWEVER,

     (i)    that any scheduled reduction to the Senior Accelerated  Distribution
            Percentage for either Loan Group  described above shall not occur as
            of any Distribution Date unless either:

          (a)(1)(X) the outstanding  principal  balance of the Mortgage Loans in
     both Loan Groups delinquent 60 days or more (including Mortgage Loans which
     are in foreclosure,  have been foreclosed or otherwise liquidated,  or with
     respect  to which the  Mortgagor  is in  bankruptcy  and any REO  Property)
     averaged  over  the last  six  months,  as a  percentage  of the  aggregate
     outstanding Certificate Principal Balance of the Subordinate  Certificates,
     is less than 50% or (Y) the outstanding principal balance of Mortgage Loans
     in both Loan Groups  delinquent 60 days or more  (including  Mortgage Loans
     which are in foreclosure,  have been foreclosed or otherwise liquidated, or
     with respect to which the Mortgagor is in bankruptcy  and any REO Property)
     averaged  over  the last  six  months,  as a  percentage  of the  aggregate
     outstanding  principal  balance of all  Mortgage  Loans in both Loan Groups
     averaged  over the last six  months,  does not  exceed 2% and (2)  Realized
     Losses  on the  Mortgage  Loans  in  both  Loan  Groups  to date  for  such
     Distribution Date if occurring during the sixth, seventh,  eighth, ninth or
     tenth year (or any year  thereafter)  after the Closing  Date are less than
     30%,  35%,  40%,  45%  or  50%,  respectively,  of the  sum of the  Initial
     Certificate Principal Balances of the Subordinate Certificates; or

          (b)(1) the outstanding principal balance of the Mortgage Loans in both
     Loan Groups delinquent 60 days or more (including  Mortgage Loans which are
     in  foreclosure,  have been  foreclosed  or otherwise  liquidated,  or with
     respect  to which the  Mortgagor  is in  bankruptcy  and any REO  Property)
     averaged  over  the last  six  months,  as a  percentage  of the  aggregate
     outstanding  principal  balance of all  Mortgage  Loans in both Loan Groups
     averaged  over the last six  months,  does not  exceed 4% and (2)  Realized
     Losses  on the  Mortgage  Loans  in  both  Loan  Groups  to date  for  such
     Distribution Date, if occurring during the sixth, seventh, eighth, ninth or
     tenth year (or any year  thereafter)  after the Closing  Date are less than
     10%,  15%,  20%,  25%  or  30%,  respectively,  of the  sum of the  Initial
     Certificate Principal Balances of the Subordinate Certificates; and

     (ii) that for any Distribution  Date on which the related Senior Percentage
          is greater than the related Senior  Percentage as of the Closing Date,
          the  related  Senior  Accelerated  Distribution  Percentage  for  such
          Distribution Date shall be 100%.

                                      -17-
<PAGE>

Notwithstanding the foregoing,  upon the reduction of the Certificate  Principal
Balances  of the Senior  Certificates  related to a Loan Group  (other  than the
related  Class  A-P  Certificates)  to  zero,  the  related  Senior  Accelerated
Distribution Percentage shall thereafter be 0%.

     SENIOR CERTIFICATE:  Any one of the Group I Senior Certificates or Group II
Senior   Certificates,   executed  by  the  Trustee  and  authenticated  by  the
Certificate Registrar substantially in the form annexed to the Standard Terms as
Exhibit A (Class A), Exhibit D (Class R) and Exhibit C-1 (Class P).

     SENIOR INTEREST  DISTRIBUTION AMOUNT: With respect to any Distribution Date
and Loan  Group,  the  amount of Accrued  Certificate  Interest  required  to be
distributed from the related Available Distribution Amount to the Holders of the
related Senior Certificates for that Distribution Date.

     SENIOR  PERCENTAGE:  The Class I-A Percentage or Class II-A Percentage,  as
applicable.

     SENIOR PRINCIPAL  DISTRIBUTION AMOUNT: As to any Distribution Date and Loan
Group,  the lesser of (a) the  balance  of the  related  Available  Distribution
Amount   remaining  after  the  distribution  of  all  amounts  required  to  be
distributed pursuant to SECTION 4.02(a)(i) and SECTION 4.02(a)(ii)(X) (excluding
any amount  distributable  pursuant to clause (E) of the definition of Class A-P
Principal  Distribution  Amount) (or, on or after the Credit  Support  Depletion
Date,  the  amount   required  to  be  distributed  to  the  related  Class  A-P
Certificateholders  pursuant to SECTION 4.02(e)),  in each case, for the related
Loan Group,  and (b) the sum of the amounts  required to be  distributed  to the
Senior  Certificateholders of the related Certificate Group on such Distribution
Date pursuant to SECTION 4.02(a)(ii)(Z).

     SPECIAL  HAZARD  AMOUNT:  As of any  Distribution  Date, an amount equal to
$4,888,058  minus the sum of (i) the aggregate  amount of Special  Hazard Losses
allocated  solely to one or more specific  Classes of Certificates in accordance
with SECTION 4.05 of this Series  Supplement and (ii) the Adjustment  Amount (as
defined below) as most recently calculated.  For each anniversary of the Cut-off
Date, the Adjustment  Amount shall be equal to the amount,  if any, by which the
amount  calculated in accordance  with the preceding  sentence  (without  giving
effect to the deduction of the Adjustment Amount for such  anniversary)  exceeds
the greater of (A) the greatest of (i) twice the outstanding  principal  balance
of the  Mortgage  Loan in the  Trust  Fund  which  has the  largest  outstanding
principal   balance  on  the  Distribution   Date  immediately   preceding  such
anniversary,  (ii) the product of 1.00% multiplied by the outstanding  principal
balance of all Mortgage Loans on the  Distribution  Date  immediately  preceding
such anniversary and (iii) the aggregate  outstanding  principal  balance (as of
the immediately preceding Distribution Date) of the Mortgage Loans in any single
five-digit California zip code area with the largest amount of Mortgage Loans by
aggregate  principal  balance as of such anniversary (B) the greatest of (i) the
product of 0.50% multiplied by the outstanding principal balance of all Mortgage
Loans on the Distribution Date immediately preceding such anniversary multiplied
by a fraction,  the  numerator  of which is equal to the  aggregate  outstanding
principal balance (as of the immediately preceding  Distribution Date) of all of
the  Mortgage  Loans  secured by  Mortgaged  Properties  located in the State of
California  divided by the aggregate  outstanding  principal  balance (as of the
immediately preceding Distribution Date) of all of the Mortgage Loans, expressed
as a percentage,  and the  denominator  of which is equal to 33.1% (equal to the

                                      -18-
<PAGE>

percentage of Mortgage Loans initially secured by Mortgaged  Properties  located
in the State of California) and (ii) the aggregate outstanding principal balance
(as of the immediately preceding Distribution Date) of the largest Mortgage Loan
secured by a Mortgaged Property located in the State of California.

     The Special  Hazard  Amount may be further  reduced by the Master  Servicer
(including  accelerating the manner in which coverage is reduced)  PROVIDED that
prior to any such  reduction,  the  Master  Servicer  shall (i)  obtain  written
confirmation  from each Rating Agency that such  reduction  shall not reduce the
rating  assigned to any Class of  Certificates  by such Rating  Agency below the
lower of the then-current  rating or the rating assigned to such Certificates as
of the  Closing  Date by such  Rating  Agency  and (ii)  provide  a copy of such
written confirmation to the Trustee.

     SUBORDINATE PRINCIPAL DISTRIBUTION AMOUNT: With respect to any Distribution
Date and Loan Group and each Class of Subordinate  Certificates,  (a) the sum of
the  following:  (i) such  Class's  pro  rata  share,  based on the  Certificate
Principal Balance of each Class of Subordinate certificates then outstanding, of
the aggregate of the amounts  calculated  (without  giving effect to the related
Senior  Percentages) for such Distribution Date for the related Loan Group under
CLAUSES (1), (2) and (3) of SECTION  4.02(a)(ii)(Z)(A) of this Series Supplement
to the extent not payable to the Senior Certificates; (ii) such Class's PRO RATA
share,  based on the Certificate  Principal Balance of each Class of Subordinate
Certificates then outstanding, of the principal collections described in SECTION
4.02(a)(ii)(Z)(B)(b)  of this  Series  Supplement  for the  related  Loan  Group
(without   giving  effect  to  the  related  Senior   Accelerated   Distribution
Percentages) to the extent such collections are not otherwise distributed to the
related  Senior  Certificates;  (iii) the product of (x) the related  Prepayment
Distribution  Percentage  and (y) the aggregate of all Principal  Prepayments in
Full received in the related Prepayment Period and Curtailments  received in the
preceding  calendar  month for the  related  Loan Group  (other than the related
Discount  Fraction of such Principal  Prepayments in Full and Curtailments  with
respect to a  Discount  Mortgage  Loan) to the extent not  payable to the Senior
Certificates;  (iv) if such Class is the Class of Subordinate  Certificates with
the Highest Priority,  any Excess  Subordinate  Principal Amount for the related
Loan Group for such Distribution Date not paid to the Senior  Certificates;  and
(v) any amounts  described in CLAUSES (i), (ii) and (iii) as determined  for any
previous  Distribution  Date, that remain  undistributed to the extent that such
amounts are not  attributable  to Realized Losses which have been allocated to a
Class of Subordinate  Certificates  minus (b) the sum of (i) with respect to the
Class  of  Subordinate   Certificates  with  the  Lowest  Priority,  any  Excess
Subordinate   Principal  Amount  for  such  Distribution   Date;  and  (ii)  the
Capitalization  Reimbursement  Amount for such Loan Group and Distribution Date,
other than the related  Discount  Fraction of any portion of that amount related
to each  Discount  Mortgage  Loan in the  related  Loan Group,  multiplied  by a
fraction,  the  numerator  of which is the  Subordinate  Principal  Distribution
Amount for such Class of Subordinate Certificates, without giving effect to this
CLAUSE  (B)(II),  and the  denominator  of  which  is the  sum of the  principal
distribution  amounts for all Classes of  Certificates  other than the Class A-P
Certificates,  without giving effect to any  reductions  for the  Capitalization
Reimbursement Amount.

     TRUST FUND: The segregated pool of assets consisting of:

                                      -19-
<PAGE>

     (i)    the Mortgage  Loans and the related  Mortgage  Files and  collateral
            securing such Mortgage Loans,

     (ii)   all payments on and collections in respect of the Mortgage Loans due
            after the Cut-off Date (other than Monthly Payments due in the month
            of the Cut-off Date) as shall be on deposit in the Custodial Account
            or in the  Certificate  Account and  identified  as belonging to the
            Trust Fund but not  including  amounts  on  deposit  in the  Initial
            Monthly Payment Fund,

     (iii)  property that secured a Mortgage Loan and that has been acquired for
            the benefit of the Certificateholders by foreclosure or deed in lieu
            of foreclosure,

     (iv)   the hazard insurance  policies and Primary  Insurance  Policies,  if
            any,

     (v)    the Initial Monthly Payment Fund, and

     (vi)   all proceeds of CLAUSES (i) through (v) above.

     UNCERTIFICATED  ACCRUED INTEREST:  With respect to each Distribution  Date,
(i)  as to  each  Uncertificated  REMIC  I  Regular  Interest  other  than  each
Uncertificated  REMIC I  Regular  Interest  Z, an  amount  equal to one  month's
interest at the related  Uncertificated  Pass-Through Rate on the Uncertificated
Principal Balance of such Uncertificated REMIC I Regular Interest and (ii) as to
the  Uncertificated  REMIC I  Regular  Interest  Z and  Uncertificated  REMIC II
Regular  Interest Z, an amount  equal to one month's  interest at the Pool Strip
Rate of the related Mortgage Loan on the principal balance of such Mortgage Loan
reduced by such regular  interest's  pro-rata share of any  prepayment  interest
shortfalls or other  reductions  of interest  allocable to the related Class A-V
Certificates.

     UNCERTIFICATED   PASS-THROUGH   RATE:   With   respect   to   each  of  the
Uncertificated REMIC I Regular Interests,  other than the Uncertificated REMIC I
Regular  Interests  Z,  the  per  annum  rate  specified  in the  definition  of
Uncertificated  REMIC I Regular  Interests.  With respect to the  Uncertificated
REMIC I Regular Interest Z and  Uncertificated  REMIC II Regular Interest Z, the
Pool  Strip  Rate  for the  related  Mortgage  Loan,  and with  respect  to each
Uncertificated  REMIC  II  Regular  Interests  Z,  100%  of  the  Uncertificated
Pass-Through Rate on the related  identically  numbered  Uncertificated  REMIC I
Regular Interests Z.

     UNCERTIFICATED PRINCIPAL BALANCE: With respect to each Uncertificated REMIC
I Regular Interest,  other than the Uncertificated  REMIC I Regular Interests Z,
as defined in the definition of Uncertificated REMIC I Regular Interest.

     UNCERTIFICATED REMIC I REGULAR INTEREST  DISTRIBUTION AMOUNTS: With respect
to each Uncertificated  REMIC I Regular Interest,  other than the Uncertificated
REMIC I Regular Interests Z, the amount specified as the Uncertificated  REMIC I
Regular Interest  Distribution  Amount with respect thereto in the definition of
Uncertificated  REMIC I Regular  Interests.  With respect to the  Uncertificated
REMIC I Regular  Interests  Z, the  Uncertificated  REMIC I Regular  Interests Z
Distribution Amount.

                                      -20-
<PAGE>

     UNCERTIFICATED  REMIC  I  REGULAR  INTERESTS:  The  Uncertificated  REMIC I
Regular  Interests Z together with the interests  identified in the table below,
each  representing an undivided  beneficial  ownership  interest in REMIC I, and
having the following characteristics:

     1.   The principal balance from time to time of each Uncertificated REMIC I
          Regular  Interest  identified  in the table  below shall be the amount
          identified  as the Initial  Principal  Balance  thereof in such table,
          minus the sum of (x) the  aggregate of all amounts  previously  deemed
          distributed  with  respect to such  interest and applied to reduce the
          Uncertificated  Principal Balance thereof pursuant to SECTION 10.04(c)
          and (y) the  aggregate  of all  reductions  in  Certificate  Principal
          Balance  deemed to have  occurred in connection  with Realized  Losses
          that were previously deemed allocated to the Uncertificated  Principal
          Balance of such  Uncertificated  REMIC I Regular Interest  pursuant to
          SECTION 10.04(c),  which equals the aggregate principal balance of the
          Classes of Certificates  identified as related to such  Uncertificated
          REMIC I Regular Interest in such table.

     2.   The Uncertificated  Pass-Through Rate for each Uncertificated  REMIC I
          Regular Interest  identified in the table below shall be the per annum
          rate set forth in the Pass-Through Rate column of such table.

     3.   The Uncertificated  REMIC I Regular Interest  Distribution  Amount for
          each  Uncertificated  REMIC I Regular Interest identified in the table
          below  shall  be,  for  any  Distribution   Date,  the  amount  deemed
          distributed  with  respect  to such  Uncertificated  REMIC  I  Regular
          Interest  on such  Distribution  Date  pursuant to the  provisions  of
          SECTION 10.04(a).

                                      -21-
<PAGE>

--------------------------- ---------------------- -------------------------
  Uncertificated REMIC I      Pass-Through Rate       Initial Principal
    Regular Interests                                      Balance
--------------------------- ---------------------- -------------------------
           I-X                      6.00%                   $1,598
--------------------------- ---------------------- -------------------------
           I-Y                      6.00%                  $42,615
--------------------------- ---------------------- -------------------------
          I-ZZZ                     6.00%                $425,065,405
--------------------------- ---------------------- -------------------------
           II-X                     5.50%                    $235
--------------------------- ---------------------- -------------------------
           II-Y                     5.50%                   $6,265
--------------------------- ---------------------- -------------------------
          II-ZZZ                    5.50%                $62,555,426
--------------------------- ---------------------- -------------------------
         I-A-P-L                    0.00%                 $1,038,900
--------------------------- ---------------------- -------------------------
         I-A-P-L                    0.00%                  $95,189
--------------------------- ---------------------- -------------------------

     UNCERTIFICATED  REMIC I  REGULAR  INTERESTS  Z  DISTRIBUTION  AMOUNT:  With
respect  to  any  Distribution  Date,  the  sum  of  the  amounts  deemed  to be
distributed  on  the  Uncertificated  REMIC  I  Regular  Interests  Z  for  such
Distribution Date pursuant to SECTION 10.04(a).

     UNCERTIFICATED  REMIC I REGULAR  INTERESTS  Z:  Each of the  Uncertificated
REMIC I Regular Interests Z1 and Uncertificated REMIC I Regular Interests Z2.

     UNCERTIFICATED REMIC I REGULAR INTERESTS Z1: Each of the 734 uncertificated
partial  undivided   beneficial   ownership   interests  in  REMIC  I,  numbered
sequentially  from 1 to 734,  each relating to the  particular  Mortgage Loan in
Loan Group I identified by such sequential number on the Mortgage Loan Schedule,
each having no principal  balance,  and each bearing  interest at the respective
Pool Strip Rate on the Stated Principal Balance of the related Mortgage Loan.

     UNCERTIFICATED REMIC I REGULAR INTERESTS Z2: Each of the 115 uncertificated
partial  undivided   beneficial   ownership   interests  in  REMIC  I,  numbered
sequentially  from 1 to 115,  each relating to the  particular  Mortgage Loan in
Loan  Group  II  identified  by such  sequential  number  on the  Mortgage  Loan
Schedule,  each having no principal  balance,  and each bearing  interest at the
respective  Pool  Strip  Rate on the Stated  Principal  Balance  of the  related
Mortgage Loan.

     UNCERTIFICATED  REMIC II REGULAR  INTERESTS  Z: Each of the  Uncertificated
REMIC II Regular Interests Z1 and Uncertificated REMIC II Regular Interests Z2.

     UNCERTIFICATED   REMIC  II   REGULAR   INTERESTS   Z1:   Each  of  the  734
uncertificated  partial  undivided  beneficial  ownership  interests in REMIC II
numbered  sequentially from 1 to 734, each relating to the identically  numbered
Uncertificated  REMIC I Regular Interests Z1, each having

                                      -22-
<PAGE>

no principal  balance,  and each bearing  interest at the respective  Pool Strip
Rate on the Stated Principal Balance of the related Mortgage Loan.

     UNCERTIFICATED   REMIC  II   REGULAR   INTERESTS   Z2:   Each  of  the  115
uncertificated  partial  undivided  beneficial  ownership  interests in REMIC II
numbered  sequentially from 1 to 115, each relating to the identically  numbered
Uncertificated  REMIC I Regular Interests Z2, each having no principal  balance,
and each  bearing  interest  at the  respective  Pool  Strip  Rate on the Stated
Principal Balance of the related Mortgage Loan.

     UNCERTIFICATED  REMIC II REGULAR  INTERESTS  Z  DISTRIBUTION  AMOUNT:  With
respect  to  any  Distribution  Date,  the  sum  of  the  amounts  deemed  to be
distributed  on  the  Uncertificated  REMIC  II  Regular  Interests  Z for  such
Distribution Date pursuant to SECTION 10.04.

     UNCERTIFICATED REMIC II REGULAR INTEREST DISTRIBUTION AMOUNTS: With respect
to the Uncertificated  REMIC II Regular Interests Z, the Uncertificated REMIC II
Regular Interests Z Distribution Amount.

     UNCERTIFICATED  REMIC REGULAR INTEREST:  Any of the Uncertificated  REMIC I
Regular Interests or Uncertificated REMIC II Regular Interests Z.

     UNDERWRITER: Residential Funding Securities, LLC.

     Section 1.02 USE OF WORDS AND PHRASES.

     "Herein," "hereby,"  "hereunder," "hereof,"  "hereinbefore,"  "hereinafter"
and other  equivalent  words refer to the Pooling and  Servicing  Agreement as a
whole. All references herein to Articles, Sections or Subsections shall mean the
corresponding  Articles,  Sections and  Subsections in the Pooling and Servicing
Agreement.  The  definitions  set forth herein include both the singular and the
plural.

     References  in the Pooling and  Servicing  Agreement to  "interest"  on and
"principal"  of the  Mortgage  Loans  shall  mean,  with  respect  to the Sharia
Mortgage Loans,  amounts in respect profit  payments and  acquisition  payments,
respectively.

                                      -23-
<PAGE>

                                   ARTICLE II

                    ARTICLE II CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

Section 2.01      CONVEYANCE OF MORTGAGE LOANS.

(a) (See Section 2.01(a) of the Standard Terms)

(b) (See Section 2.01(b) of the Standard Terms)

(c) (See Section 2.01(c) of the Standard Terms)

(d) (See Section 2.01(d) of the Standard Terms)

(e) (See Section 2.01(e) of the Standard Terms)

(f) (See Section 2.01(f) of the Standard Terms)

(g) (See Section 2.01(g) of the Standard Terms)

(h) (See Section 2.01(h) of the Standard Terms)

Section 2.02  ACCEPTANCE BY TRUSTEE. (See Section 2.02 of the Standard Terms)

Section 2.03  REPRESENTATIONS,  WARRANTIES AND COVENANTS OF THE MASTER  SERVICER
              AND THE COMPANY.

     (a) For  representations,  warranties and covenants of the Master Servicer,
see SECTION 2.03(A) of the Standard Terms.

     (b) The  Company  hereby  represents  and  warrants  to the Trustee for the
benefit of  Certificateholders  that as of the Cut-off  Date (or,  if  otherwise
specified below, as of the date so specified):

          (i) No  Group I Loan is 30 to 59 days  Delinquent  in the  payment  of
     principal  and interest as of the Cut-Off Date and no Group I Loan has been
     30 or more days  Delinquent in payment of principal and interest  since its
     origination.  No Group II Loan is 30 or more days Delinquent in the payment
     of  principal  and interest as of the Cut-off Date and no Group II Loan has
     been 30 or more days  Delinquent in payment of principal and interest since
     its origination.

          (ii) The  information  set forth in Exhibit  One-I and Exhibit  One-II
     hereto with respect to each  Mortgage  Loan or the Mortgage  Loans,  as the
     case may be, is true and  correct in all  material  respects at the date or
     dates respecting which such information is furnished;

          (iii) The  Mortgage  Loans are  fully-amortizing  (subject to interest
     only periods, if applicable),  fixed-rate mortgage loans with level Monthly
     Payments due, with respect

                                      -24-
<PAGE>

     to a majority  of the  Mortgage  Loans,  on the first day of each month and
     terms to maturity at origination or modification of not more than 30 years,
     in the case of Group I Loans, and 15 years, in the case of Group II Loans;

          (iv) Except with respect to  approximately  0.2% of Group I Loans,  to
     the best of the  Company's  knowledge,  with  respect to all of the Group I
     Loans and Group II Loans,  if a Mortgage  Loan is  secured  by a  Mortgaged
     Property with a  Loan-to-Value  Ratio at  origination in excess of 80%, (i)
     any such Group I Loan is the  subject of a Primary  Insurance  Policy  that
     insures  that (a) at  least  30% of the  Stated  Principal  Balance  of the
     Mortgage Loan at origination if the  Loan-to-Value  Ratio is between 95.00%
     and 90.01%, (b) at least 25% of such balance if the Loan-to-Value  Ratio is
     between  90.00%  and  85.01%,  and (c) at least 12% of such  balance if the
     Loan-to-Value Ratio is between 85.00% and 80.01% and (ii) any such Group II
     Loan is the subject of a Primary  Insurance Policy that insures that (a) at
     least  25%  of  the  Stated  Principal  Balance  of the  Mortgage  Loan  at
     origination if the Loan-to-Value Ratio is between 95.00% and 90.01%, (b) at
     least 12% of such balance if the Loan-to-Value  Ratio is between 90.00% and
     85.01%,  and (c) at least 6% of such balance if the Loan-to-Value  Ratio is
     between  85.00% and 80.01%.  To the best of the Company's  knowledge,  each
     such Primary  Insurance  Policy is in full force and effect and the Trustee
     is entitled to the benefits thereunder;

          (v) The  issuers  of the  Primary  Insurance  Policies  are  insurance
     companies whose  claims-paying  abilities are currently  acceptable to each
     Rating Agency;

          (vi) No more than 0.7% of the Group I Loans by aggregate  Cut-off Date
     Principal  Balance are secured by Mortgaged  Properties  located in any one
     zip code area in the State of California and no more than 0.6% of the Group
     I Loans  by  aggregate  Cut-off  Date  Principal  Balance  are  secured  by
     Mortgaged  Properties located in any one zip code area outside the State of
     California;  no more than 2.4% of the Group II Loans by  aggregate  Cut-off
     Date Principal Balance are secured by Mortgaged  Properties  located in any
     one zip code area in the State of  California  and no more than 1.8% of the
     Group II Loans by aggregate  Cut-off Date Principal  Balance are secured by
     Mortgaged  Properties located in any one zip code area outside the State of
     California;

          (vii) The  improvements  upon the  Mortgaged  Properties  are  insured
     against  loss by fire and other  hazards as required by the Program  Guide,
     including  flood  insurance if required under the National Flood  Insurance
     Act of 1968,  as amended.  The Mortgage  requires the Mortgagor to maintain
     such casualty insurance at the Mortgagor's  expense, and on the Mortgagor's
     failure  to do so,  authorizes  the  holder of the  Mortgage  to obtain and
     maintain   such   insurance  at  the   Mortgagor's   expense  and  to  seek
     reimbursement therefore from the Mortgagor;

          (viii)  Immediately  prior to the  assignment of the Mortgage Loans to
     the Trustee, the Company had good title to, and was the sole owner of, each
     Mortgage Loan free and clear of any pledge,  lien,  encumbrance or security
     interest (other than rights to servicing and related compensation) and such
     assignment validly transfers ownership of the Mortgage Loans to the Trustee
     free and clear of any pledge, lien, encumbrance or security interest;

                                      -25-
<PAGE>

          (ix) No more than  40.48% of the  Group I Loans by  aggregate  Cut-off
     Date Principal Balance were underwritten under a reduced loan documentation
     program;  no more than  33.75% of the Group II Loans by  aggregate  Cut-off
     Date Principal Balance were underwritten under a reduced loan documentation
     program;

          (x) Each Mortgagor represented in its loan application with respect to
     the  related   Mortgage   Loan  that  the  Mortgaged   Property   would  be
     owner-occupied  and therefore  would not be an investor  property as of the
     date of origination of such Mortgage Loan. No Mortgagor is a corporation or
     a partnership;

          (xi) None of the Mortgage Loans are Buydown Mortgage Loans;

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

          (xiii) A policy of title  insurance was effective as of the closing of
     each  Mortgage  Loan and is valid and binding and remains in full force and
     effect,  unless the Mortgaged  Properties  are located in the State of Iowa
     and an attorney's certificate has been provided as described in the Program
     Guide;

          (xiv) No more than 0.2% of the Group I Loans are Cooperative Loans and
     none of the Group II Loans are Cooperative Loans;

          (xv) Except  with  respect to  approximately  2.4% the Group II Loans,
     none of the Mortgage Loans were originated  under a "streamlined"  Mortgage
     Loan  program  (through  which no new or updated  appraisals  of  Mortgaged
     Properties are obtained in connection  with the refinancing  thereof),  the
     related  Seller has  represented  that  either (a) the value of the related
     Mortgaged  Property as of the date the Mortgage Loan was originated was not
     less than the appraised  value of such property at the time of  origination
     of the  refinanced  Mortgage  Loan or (b) the  Loan-to-Value  Ratio  of the
     Mortgage Loan as of the date of  origination of the Mortgage Loan generally
     meets the Company's underwriting guidelines;

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

          (xvii) None of the  Mortgage  Loans  contains in the related  Mortgage
     File a Destroyed Mortgage Note; and

          (xviii)  None  of the  Mortgage  Loans  are  Pledged  Asset  Loans  or
     Additional Collateral Loans.

It is understood and agreed that the representations and warranties set forth in
this SECTION 2.03(b) shall survive delivery of the respective Custodial Files to
the Trustee or the Custodian.

     Upon discovery by any of the Company, the Master Servicer,  the Trustee, or
the Custodian of a breach of any of the representations and warranties set forth
in this SECTION 2.03(b) that  materially and adversely  affects the interests of
the  Certificateholders  in any

                                      -26-
<PAGE>

Mortgage  Loan,  the party  discovering  such breach  shall give prompt  written
notice to the other parties (any Custodian  being so obligated under a Custodial
Agreement);   PROVIDED,   HOWEVER,  that  in  the  event  of  a  breach  of  the
representation  and  warranty  set  forth in  SECTION  2.03(b)(xii),  the  party
discovering  such breach shall give such notice  within five days of  discovery.
Within 90 days of its discovery or its receipt of notice of breach,  the Company
shall either (i) cure such breach in all material respects or (ii) purchase such
Mortgage  Loan from the Trust Fund at the  Purchase  Price and in the manner set
forth in SECTION 2.02 of the Standard  Terms;  PROVIDED  that the Company  shall
have the option to substitute a Qualified  Substitute Mortgage Loan or Loans for
such Mortgage Loan if such  substitution  occurs within two years  following the
Closing  Date;  PROVIDED that if the omission or defect would cause the Mortgage
Loan to be other than a "qualified mortgage" as defined in Section 860G(a)(3) of
the Code,  any such cure or  repurchase  must occur within 90 days from the date
such  breach was  discovered.  Any such  substitution  shall be  effected by the
Company  under the same terms and  conditions as provided in SECTION 2.04 of the
Standard Terms for  substitutions by Residential  Funding.  It is understood and
agreed that the  obligation of the Company to cure such breach or to so purchase
or  substitute  for any Mortgage Loan as to which such a breach has occurred and
is continuing shall constitute the sole remedy  respecting such breach available
to the  Certificateholders  or the Trustee on behalf of the  Certificateholders.
Notwithstanding  the  foregoing,  the  Company  shall  not be  required  to cure
breaches  or  purchase  or  substitute  for  Mortgage  Loans as provided in this
SECTION  2.03(b) if the  substance of the breach of a  representation  set forth
above also constitutes fraud in the origination of the Mortgage Loan.

     Section 2.04  REPRESENTATIONS AND WARRANTIES OF RESIDENTIAL  FUNDING.  (See
                   Section 2.04 of the Standard Terms)

     Section 2.05  EXECUTION AND AUTHENTICATION OF CLASS R-I CERTIFICATES.

     The Trustee acknowledges the assignment to it of the Mortgage Loans and the
delivery of the Custodial  Files to it, or any Custodian on its behalf,  subject
to any exceptions noted,  together with the assignment to it of all other assets
included  in  the  Trust  Fund,   receipt  of  which  is  hereby   acknowledged.
Concurrently with such delivery and in exchange therefore, the Trustee, pursuant
to the written request of the Company  executed by an officer of the Company has
executed and caused to be  authenticated  and  delivered to or upon the order of
the  Company  the Class  R-I  Certificates  in  authorized  denominations  which
together  with  the  Uncertificated  REMIC I  Regular  Interests,  evidence  the
beneficial interest in REMIC I.

     Section  2.06  CONVEYANCE  OF  UNCERTIFICATED  REMIC I  REGULAR  INTERESTS;
                    ACCEPTANCE BY THE TRUSTEE.

     The Company,  as of the Closing Date, and  concurrently  with the execution
and delivery hereof,  does hereby assign without  recourse all the right,  title
and  interest  of the  Company  in and to the  Uncertificated  REMIC  I  Regular
Interests  to the  Trustee  for the  benefit  of the  Holders  of each  Class of
Certificates   (other  than  the  Class  R-I   Certificates   and  the  Class  P
Certificates).  The Trustee  acknowledges  receipt of the Uncertificated REMIC I
Regular Interests and declares that it holds and will hold the same in trust for
the exclusive use and benefit of all present and future Holders of each Class of
Certificates   (other  than  the  Class  R-I

                                      -27-
<PAGE>

Certificates  and the Class P  Certificates).  The rights of the Holders of each
Class of  Certificates  (other than the Class R-I  Certificates  and the Class P
Certificates) to receive  distributions from the proceeds of REMIC II in respect
of such Classes,  and all ownership  interests of the Holders of such Classes in
such distributions shall be as set forth in this Agreement.

     Section 2.07 ISSUANCE OF CERTIFICATES EVIDENCING INTEREST IN REMIC II.

     The Trustee acknowledges the assignment to it of the Uncertificated REMIC I
Regular  Interests  and,  concurrently  therewith  and  in  exchange  therefore,
pursuant  to the written  request of the  Company  executed by an officer of the
Company,  the Trustee has executed and caused to be authenticated  and delivered
to or upon the order of the Company, all Classes of Certificates (other than the
Class  R-I   Certificates   and  the  Class  P   Certificates)   in   authorized
denominations, which evidence the beneficial interest in the entire REMIC II.

     Section 2.08  PURPOSES  AND POWERS OF THE TRUST.  (See  Section 2.08 of the
                   Standard Terms).

     Section 2.09 AGREEMENT REGARDING ABILITY TO DISCLOSE.

     The  Company,   the  Master   Servicer  and  the  Trustee   hereby   agree,
notwithstanding any other express or implied agreement to the contrary, that any
and all Persons,  and any of their respective  employees,  representatives,  and
other agents may disclose,  immediately upon commencement of discussions, to any
and all Persons,  without  limitation  of any kind,  the tax  treatment  and tax
structure of the transaction  and all materials of any kind (including  opinions
or other tax  analyses)  that are  provided to any of them  relating to such tax
treatment  and tax  structure.  For purposes of this  paragraph,  the terms "tax
treatment"  and "tax  structure"  are  defined  under  Treasury  Regulation  ss.
1.6011-4(c).

                                      -28-
<PAGE>

                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

     Section 3.01 MASTER  SERVICER TO ACT AS SERVICER.  (See Section 3.01 of the
                  Standard Terms)

     Section  3.02   SUBSERVICING   AGREEMENTS   BETWEEN  MASTER   SERVICER  AND
                     SUBSERVICERS;  ENFORCEMENT  OF  SUBSERVICERS'  AND SELLERS'
                     OBLIGATIONS.

     (a) The Master  Servicer  may  continue in effect  Subservicing  Agreements
entered into by Residential  Funding and Subservicers prior to the execution and
delivery of this Agreement,  and may enter into new Subservicing Agreements with
Subservicers,  for  the  servicing  and  administration  of all or  some  of the
Mortgage Loans. Each Subservicer shall be either (i) an institution the accounts
of which are  insured by the FDIC or (ii)  another  entity  that  engages in the
business of originating or servicing mortgage loans, and in either case shall be
authorized  to  transact  business  in the state or states in which the  related
Mortgaged  Properties  it is to  service  are  situated,  if and  to the  extent
required by applicable law to enable the  Subservicer to perform its obligations
hereunder and under the  Subservicing  Agreement,  and in either case shall be a
Freddie Mac,  Fannie Mae or HUD approved  mortgage  servicer.  In addition,  any
Subservicer  of a  Mortgage  Loan  insured  by the FHA  must be an  FHA-approved
servicer,  and any Subservicer of a Mortgage Loan guaranteed by the VA must be a
VA-approved  servicer.  Each Subservicer of a Mortgage Loan shall be entitled to
receive and retain,  as provided in the related  Subservicing  Agreement  and in
SECTION 3.07 of the Standard Terms,  the related  Subservicing Fee from payments
of interest received on such Mortgage Loan after payment of all amounts required
to be remitted to the Master  Servicer in respect of such Mortgage Loan. For any
Mortgage Loan that is a Nonsubserviced  Mortgage Loan, the Master Servicer shall
be entitled to receive and retain an amount equal to the  Subservicing  Fee from
payments of interest. Unless the context otherwise requires,  references in this
Agreement  to actions  taken or to be taken by the Master  Servicer in servicing
the Mortgage  Loans include  actions  taken or to be taken by a  Subservicer  on
behalf of the Master  Servicer.  Each  Subservicing  Agreement will be upon such
terms and  conditions as are generally  required by,  permitted by or consistent
with the Program Guide and are not  inconsistent  with this Agreement and as the
Master Servicer and the Subservicer have agreed; PROVIDED that, the Subservicing
Agreement between the Master Servicer and Wells Fargo, if any, will be upon such
terms and  conditions as are  consistent  with this  Agreement and as the Master
Servicer and the Subservicer  have agreed,  which may not be consistent with the
Program  Guide.  With the approval of the Master  Servicer,  a  Subservicer  may
delegate  its  servicing   obligations  to  third-party   servicers,   but  such
Subservicer will remain obligated under the related Subservicing Agreement.  The
Master  Servicer  and a  Subservicer  may enter  into  amendments  thereto  or a
different form of Subservicing  Agreement,  and the form referred to or included
in the Program Guide is merely  provided for information and shall not be deemed
to limit in any respect the discretion of the Master Servicer to modify or enter
into  different  Subservicing  Agreements;  PROVIDED,  HOWEVER,  that  any  such
amendments  or  different  forms  shall be  consistent  with and not violate the
provisions of either this Agreement or the Program Guide in a manner which would
materially  and adversely  affect the interests of the  Certificateholders.  The
Program  Guide and any other  Subservicing  Agreement  entered  into between the

                                      -29-
<PAGE>

Master Servicer and any Subservicer  shall require the Subservicer to accurately
and fully report its borrower credit files to each of the Credit Repositories in
a timely manner.

     (b) (See Section 3.02(b) of the Standard Terms)

     Section 3.03  SUCCESSOR  SUBSERVICERS.  (See  Section  3.03 of the Standard
                   Terms)

     Section 3.04  LIABILITY  OF THE MASTER  SERVICER.  (See Section 3.04 of the
                   Standard Terms)

     Section 3.05  NO  CONTRACTUAL  RELATIONSHIP BETWEEN SUBSERVICER AND TRUSTEE
                   OR CERTIFICATEHOLDERS. (See  Section  3.05  of  the  Standard
                   Terms)

     Section 3.06  ASSUMPTION  OR  TERMINATION  OF  SUBSERVICING  AGREEMENTS  BY
                   TRUSTEE. (See Section 3.06 of the Standard Terms)

     Section 3.07  COLLECTION  OF CERTAIN  MORTGAGE LOAN  PAYMENTS;  DEPOSITS TO
                   CUSTODIAL ACCOUNT.

     (a) (See Section 3.07(a) of the Standard Terms)

     (b) The Master Servicer shall establish and maintain a Custodial Account in
which the Master  Servicer  shall  deposit or cause to be  deposited  within two
Business  Days  of  receipt  by  the  Master   Servicer,   except  as  otherwise
specifically provided herein, the following payments and collections remitted by
Subservicers  or received by it in respect of the Mortgage  Loans  subsequent to
the  Cut-off  Date  (other  than in respect of  principal  and  interest  on the
Mortgage Loans due on or before the Cut-off Date):

            (i) All  payments  on  account  of  principal,  including  Principal
     Prepayments   made by  Mortgagors  on the Mortgage  Loans and the principal
     component of  any  Subservicer  Advance or of any REO Proceeds  received in
     connection  with an REO Property for which an REO Disposition has occurred;

            (ii) All  payments on account of interest at the  Adjusted  Mortgage
     Rate  on the  Mortgage  Loans,  including  Buydown  Funds,  if any, and the
     interest   component  of any  Subservicer  Advance  or of any REO  Proceeds
     received  in connection  with an REO Property for which an REO  Disposition
     has occurred;

            (iii)  Insurance  Proceeds,  Subsequent  Recoveries and  Liquidation
     Proceeds (net of any related expenses of the Subservicer);

            (iv) All  proceeds  of any  Mortgage  Loans  purchased  pursuant  to
     Section   2.02,  2.03,  2.04,  4.07 or 9.01 and all amounts  required to be
     deposited  in connection with the  substitution  of a Qualified  Substitute
     Mortgage Loan pursuant to Section 2.03 or 2.04;

            (v)  Any  amounts  required  to be  deposited  pursuant  to  Section
     3.07(c), 3.08(b) or 3.21;

                                      -30-
<PAGE>

            (vi) All amounts  transferred  from the  Certificate  Account to the
     Custodial Account in accordance with Section 4.02(a);

            (vii) Any amounts  realized by the  Subservicer  and received by the
     Master Servicer in respect of any Additional Collateral; and

            (viii) Any  amounts  received  by the Master  Servicer in respect of
     Pledged Assets.

     The foregoing  requirements  for deposit in the Custodial  Account shall be
exclusive,  it being understood and agreed that, without limiting the generality
of the foregoing, payments on the Mortgage Loans which are not part of the Trust
Fund  (consisting  of  payments  in respect of  principal  and  interest  on the
Mortgage Loans due on or before the Cut-off Date) and payments or collections in
the  nature  of late  payment  charges  or  assumption  fees may but need not be
deposited  by the Master  Servicer in the  Custodial  Account.  In the event any
amount not required to be deposited in the  Custodial  Account is so  deposited,
the Master  Servicer  may at any time  withdraw  such amount from the  Custodial
Account, any provision herein to the contrary notwithstanding.  Amounts received
by the Master Servicer in connection  with Prepayment  Charges on the Prepayment
Charge Loans shall be remitted by the Master Servicer,  upon receipt thereof, to
the Trustee and shall be deposited by the Trustee,  upon the receipt thereof and
written  direction with respect thereto,  into the Class P Reserve Account.  The
Custodial  Account  may  contain  funds that  belong to one or more trust  funds
created  for  mortgage  pass-through  certificates  of other  Series but may not
contain funds relating to the Mortgage Loans that are not included in such trust
funds. Notwithstanding such commingling of funds, the Master Servicer shall keep
records that  accurately  reflect the funds on deposit in the Custodial  Account
that have been identified by it as being attributable to the Mortgage Loans.

     With respect to Insurance Proceeds,  Liquidation Proceeds, REO Proceeds and
the  proceeds of the purchase of any Mortgage  Loan  pursuant to Sections  2.02,
2.03,  2.04 and 4.07  received in any calendar  month,  the Master  Servicer may
elect to treat such amounts as included in the Available Distribution Amount for
the Distribution Date in the month of receipt, but is not obligated to do so. If
the Master Servicer so elects, such amounts will be deemed to have been received
(and any related Realized Loss shall be deemed to have occurred) on the last day
of the month prior to the receipt thereof.

     (c) (See Section 3.07(c) of the Standard Terms)

     (d) (See Section 3.07(d) of the Standard Terms)

     (e)  Notwithstanding  Section 3.07(a),  The Master Servicer shall not waive
(or  permit a  Subservicer  to waive)  any  Prepayment  Charge  unless:  (i) the
enforceability  thereof  shall  have been  limited  by  bankruptcy,  insolvency,
moratorium,  receivership  and other similar laws relating to creditors'  rights
generally,  (ii) the  enforcement  thereof is  illegal,  or any local,  state or
federal  agency  has  threatened  legal  action  if the  prepayment  penalty  is
enforced,  (iii) the  collectability  thereof  shall  have been  limited  due to
acceleration  in connection with a foreclosure or other  involuntary  payment or
(iv) such waiver is standard and customary in servicing  similar  Mortgage Loans
and relates to a default or a reasonably  foreseeable  default and would, in the
reasonable

                                      -31-
<PAGE>

judgment of the Master Servicer, maximize recovery of total proceeds taking into
account the value of such Prepayment Charge and the related Mortgage Loan. In no
event will the Master  Servicer waive a Prepayment  Charge in connection  with a
refinancing  of a Mortgage Loan that is not related to a default or a reasonably
foreseeable  default.  If a Prepayment  Charge is waived,  but does not meet the
standards  described above, then the Master Servicer is required to deposit into
the Class P Reserve Account the amount of such waived  Prepayment  Charge at the
time that the amount  prepaid on the  related  Mortgage  Loan is  required to be
deposited into the Custodial  Account.  Notwithstanding  any other provisions of
this  Agreement,  any  payments  made by the Master  Servicer  in respect of any
waived  Prepayment  Charges  pursuant to this Section shall be deemed to be paid
outside of the Trust Fund and not part of any REMIC.

     Section 3.08 SUBSERVICING ACCOUNTS;  SERVICING ACCOUNTS.  (See Section 3.08
                  of the Standard Terms)

     Section 3.09 ACCESS TO CERTAIN  DOCUMENTATION AND INFORMATION REGARDING THE
                  MORTGAGE LOANS. (See Section 3.09 of the Standard Terms)

     Section 3.10 PERMITTED WITHDRAWALS FROM THE CUSTODIAL ACCOUNT. (See Section
                  3.10 of the Standard Terms)

     Section 3.11 MAINTENANCE  OF THE PRIMARY  INSURANCE  POLICIES;  COLLECTIONS
                  THEREUNDER. (See Section 3.11 of the Standard Terms)

     Section 3.12 MAINTENANCE  OF  FIRE  INSURANCE  AND  OMISSIONS  AND FIDELITY
                  COVERAGE. (See Section 3.12 of the Standard Terms)

     Section 3.13 ENFORCEMENT    OF    DUE-ON-SALE    CLAUSES;   ASSUMPTION  AND
                  MODIFICATION   AGREEMENTS;   CERTAIN Assignments. (See Section
                  3.13 of the Standard Terms)

     Section 3.14 REALIZATION UPON DEFAULTED  MORTGAGE LOANS.  (See Section 3.14
                  of the Standard Terms)

     Section 3.15 TRUSTEE TO COOPERATE; RELEASE OF CUSTODIAL FILES. (See Section
                  3.15 of the Standard Terms)

     Section 3.16 SERVICING AND OTHER COMPENSATION; COMPENSATING INTEREST.

          (a) (See Section 3.16(a) of the Standard Terms)

          (b) Additional servicing  compensation in the form of assumption fees,
     late payment charges, investment income on amounts in the Custodial Account
     or the  Certificate  Account or  otherwise  (but not  including  Prepayment
     Charges) shall be retained by the Master Servicer or the Subservicer to the
     extent provided  herein,  subject to clause (e) below.  Prepayment  Charges
     shall be  deposited  into the Class P Reserve  Account and shall be paid on
     each Distribution Date to the Holders of the Class P Certificates.

                                      -32-
<PAGE>

          (c) (See Section 3.16(c) of the Standard Terms)

          (d) (See Section 3.16(d) of the Standard Terms)

          (e) (See Section 3.16(e) of the Standard Terms)

     Section 3.17 REPORTS TO THE TRUSTEE AND THE  COMPANY.  (See Section 3.17 of
                  the Standard Terms)

     Section 3.18 ANNUAL  STATEMENT AS TO  COMPLIANCE.  (See Section 3.18 of the
                  Standard Terms)

     Section 3.19 ANNUAL INDEPENDENT PUBLIC ACCOUNTANTS'  SERVICING REPORT. (See
                  Section 3.19 of the Standard Terms)

     Section 3.20 RIGHTS OF THE COMPANY IN RESPECT OF THE MASTER SERVICER.  (See
                  Section 3.20 of the Standard Terms)

     Section 3.21 ADMINISTRATION  OF BUYDOWN  FUNDS.  (See  Section 3.21 of the
                  Standard Terms)

     Section 3.22 ADVANCE FACILITY. (See Section 3.22 of the Standard Terms)

                                      -33-
<PAGE>

                                   ARTICLE IV

                                   PAYMENTS TO
                               CERTIFICATEHOLDERS

     Section 4.01 CERTIFICATE ACCOUNT. (See Section 4.01 of the Standard Terms)

     Section 4.02 DISTRIBUTIONS.

     (a) On each  Distribution  Date,  (x) the Master  Servicer on behalf of the
Trustee or (y) the Paying Agent appointed by the Trustee,  shall  distribute (I)
to the Master Servicer or a sub-servicer, in the case of a distribution pursuant
to SECTION  4.02(A)(III)  below,  the amount  required to be  distributed to the
Master Servicer or a sub-servicer  pursuant to SECTION  4.02(a)(iii)  below, and
(II) to each  Certificateholder  of record  on the next  preceding  Record  Date
(other than as provided in SECTION 9.01 of the  Standard  Terms  respecting  the
final distribution), either (1) in immediately available funds (by wire transfer
or otherwise) to the account of such Certificateholder at a bank or other entity
having  appropriate  facilities  therefore,  if  such  Certificateholder  has so
notified the Master  Servicer or the Paying Agent, as the case may be, or (2) if
such  Certificateholder  has not so notified  the Master  Servicer or the Paying
Agent by the  Record  Date,  by check  mailed to such  Certificateholder  at the
address  of  such  Holder   appearing   in  the   Certificate   Register,   such
Certificateholder's  share  (which  share  (A)  with  respect  to each  Class of
Certificates  (other than any Subclass of the Class A-V Certificates),  shall be
based on the aggregate of the Percentage  Interests  represented by Certificates
of the applicable  Class held by such Holder or (B) with respect to any Subclass
of the Class A-V Certificates, shall be equal to the amount (if any) distributed
pursuant to SECTION  4.02(a)(i)  below to each Holder of a Subclass  thereof) of
the  following  amounts,  in the  following  order of  priority  (subject to the
provisions of SECTION 4.02(b), (c), (d), (e) and (f) below), in each case to the
extent of the  related  Available  Distribution  Amount  remaining,  and further
subject to the  provisions  of  SECTION  4.02(a)(ii)(Y)  below  with  respect to
Prepayment  Charges, to the extent of Prepayment Charges on deposit in the Class
P Reserve Account:

          (i) (X) from the  Available  Distribution  Amount  related to the Loan
     Group I, to the holders of the Group I Senior  Certificates (other than the
     Class I-A-P  Certificates and the Class P Certificates) on a PRO RATA basis
     based on the Accrued Certificate Interest payable on such Certificates with
     respect to such Distribution Date, the Accrued Certificate Interest on such
     Classes of Certificates  (or Subclasses,  if any, with respect to the Class
     I-A-V   Certificates)  for  such   Distribution   Date,  plus  any  Accrued
     Certificate   Interest   thereon   remaining   unpaid  from  any   previous
     Distribution Date, except as provided in the last paragraph of this SECTION
     4.02(a); and

          (Y) from the Available  Distribution  Amount related to the Loan Group
     II, to the  holders  of the Group II Senior  Certificates  (other  than the
     Class  II-A-P  Certificates)  on a PRO  RATA  basis  based  on the  Accrued
     Certificate  Interest  payable on such  Certificates  with  respect to such
     Distribution  Date,  the Accrued  Certificate  Interest on such  Classes of
     Certificates  (or  Subclasses,  if any,  with  respect to the Class  II-A-V
     Certificates) for such Distribution Date, plus any

                                      -34-
<PAGE>

     Accrued  Certificate  Interest  thereon  remaining unpaid from any previous
     Distribution Date, except as provided in the last paragraph of this SECTION
     4.02(a);

          (ii)  (X)  to  the  Class  I-A-P   Certificates   from  the  Available
     Distribution  Amount from Loan Group I and to the Class II-A-P Certificates
     from the  Available  Distribution  Amount from Loan Group II, the Class A-P
     Principal  Distribution  Amount  for the  related  Loan  Group,  until  the
     Certificate  Principal  Balance of the related Class A-P  Certificates  has
     been reduced to zero;

          (Y) to the Class P Certificates,  the Prepayment Charges on deposit in
     the Class P Reserve Account; and

          (Z) to the  Senior  Certificates  (other  than the  related  Class A-P
     Certificates) of each Certificate  Group,  from the Available  Distribution
     Amount for the related Loan Group in the  priorities  and amounts set forth
     in SECTIONS 4.02(b) through 4.02(f),  the sum of the following  (applied to
     reduce the Certificate  Principal Balances of such Senior Certificates,  as
     applicable):

          (A) the related Senior  Percentage for such Distribution Date and Loan
     Group, as applicable, times the sum of the following:

                    (1) the principal portion of each Monthly Payment due during
               the related Due Period on each  Outstanding  Mortgage Loan in the
               related Loan Group (other than the related  Discount  Fraction of
               the principal  portion of such payment with respect to a Discount
               Mortgage Loan, if any, in the related Loan Group), whether or not
               received on or prior to the related Determination Date, minus the
               principal  portion of any Debt Service  Reduction (other than the
               related Discount  Fraction of the principal  portion of such Debt
               Service  Reductions with respect to each Discount  Mortgage Loan,
               if any)  which  together  with  other  Bankruptcy  Losses  on the
               Mortgage  Loans in the  related  Loan Group  exceeds  the related
               Bankruptcy Amount;

                    (2) the Stated Principal Balance of any Mortgage Loan in the
               related  Loan Group  repurchased  during the  preceding  calendar
               month (or deemed to have been so repurchased  in accordance  with
               SECTION 3.07(b) of the Standard Terms) pursuant to SECTIONS 2.02,
               2.03,  2.04 or 4.07 and the amount of any shortfall  deposited in
               the Custodial  Account in connection  with the  substitution of a
               Deleted  Mortgage  Loan in the  related  Loan Group  pursuant  to
               SECTION 2.03 or 2.04 during the preceding  calendar  month (other
               than the  related  Discount  Fraction  of such  Stated  Principal
               Balance or shortfall with respect to each Discount Mortgage Loan,
               if any); and

                                      -35-
<PAGE>

                    (3)  the   principal   portion  of  all  other   unscheduled
               collections  (other  than  Principal   Prepayments  in  Full  and
               Curtailments  and  amounts  received  in  connection  with a Cash
               Liquidation  or REO  Disposition  of a Mortgage Loan described in
               SECTION  4.02(a)(ii)(Z)(B)  of this Series Supplement,  including
               without limitation  Insurance Proceeds,  Liquidation Proceeds and
               REO Proceeds)  with respect to the related Loan Group,  including
               Subsequent  Recoveries  received  during the  preceding  calendar
               month (or  deemed to have been so  received  in  accordance  with
               SECTION  3.07(b) of the Standard  Terms) to the extent applied by
               the Master  Servicer as  recoveries  of  principal of the related
               Mortgage  Loan  pursuant to SECTION  3.14 of the  Standard  Terms
               (other  than  the  related  Discount  Fraction  of the  principal
               portion of such  unscheduled  collections,  with  respect to each
               Discount Mortgage Loan, if any, in the related Loan Group);

                    (B) with respect to each  Mortgage  Loan in the related Loan
               Group for which a Cash Liquidation or a REO Disposition  occurred
               during  the  preceding  calendar  month  (or was  deemed  to have
               occurred during such period in accordance with SECTION 3.07(b) of
               the  Standard  Terms) and did not  result in any  Excess  Special
               Hazard Losses,  Excess Fraud Losses,  Excess Bankruptcy Losses or
               Extraordinary  Losses,  an amount  equal to the lesser of (a) the
               related Senior  Percentage for such  Distribution  Date times the
               Stated  Principal  Balance of such  Mortgage Loan (other than the
               related Discount Fraction of such Stated Principal Balance,  with
               respect  to each  Discount  Mortgage  Loan)  and (b) the  related
               Senior Accelerated  Distribution Percentage for such Distribution
               Date times the related unscheduled collections (including without
               limitation  Insurance  Proceeds,  Liquidation  Proceeds  and  REO
               Proceeds)  to the  extent  applied  by  the  Master  Servicer  as
               recoveries of principal of the related  Mortgage Loan pursuant to
               SECTION 3.14 of the  Standard  Terms (in each case other than the
               portion  of  such  unscheduled  collections,  with  respect  to a
               Discount Mortgage Loan,  included in clause (C) of the definition
               of  Class  A-P  Principal  Distribution  Amount  in  this  Series
               Supplement);

                    (C) the related Senior Accelerated  Distribution  Percentage
               for such  Distribution  Date times the aggregate of all Principal
               Prepayments  in Full  with  respect  to the  related  Loan  Group
               received in the related  Prepayment  Period and Curtailments with
               respect to the  related  Loan  Group  received  in the  preceding

                                      -36-
<PAGE>

               calendar month (other than the related Discount  Fraction of such
               Principal  Prepayments in Full and Curtailments,  with respect to
               each Discount Mortgage Loan in the related Loan Group);

                    (D)  any  Excess  Subordinate   Principal  Amount  for  such
               Distribution Date with respect to such Loan Group;

                    (E) any amounts to be  allocated  to the related  Loan Group
               from the other Loan Group  pursuant  to the second  paragraph  of
               SECTION 4.02(d) of this Series Supplement; and

                    (F) any amounts  described in  subsection  (ii)(Z),  CLAUSES
               (a), (b), (c) and (e) of this SECTION 4.02(a),  as determined for
               any  previous   Distribution  Date,  which  remain  unpaid  after
               application of amounts  previously  distributed  pursuant to this
               CLAUSE (f) to the extent that such  amounts are not  attributable
               to Realized  Losses which have been allocated to the  Subordinate
               Certificates; minus

                    (G) the related Capitalization Reimbursement Amount for such
               Distribution  Date, other than the related  Discount  Fraction of
               any  portion of that  amount  related to each  Discount  Mortgage
               Loan,  if  any,  in  the  related  Loan  Group,  multiplied  by a
               fraction,  the numerator of which is the related Senior Principal
               Distribution  Amount,  without  giving effect to this CLAUSE (g),
               and  the  denominator  of  which  is the  sum  of  the  principal
               distribution  amounts  for all  Classes of  related  Certificates
               other than the related Class A-P  Certificates,  payable from the
               Available  Distribution Amount for the related Loan Group without
               giving effect to any  reductions  for the related  Capitalization
               Reimbursement Amount;

          (iii)  if  the  Certificate  Principal  Balances  of  the  Subordinate
     Certificates  have not been  reduced to zero,  to the Master  Servicer or a
     Sub-Servicer,  by remitting  for deposit to the Custodial  Account,  to the
     extent of and in  reimbursement  for any Advances or Sub-Servicer  Advances
     previously  made with  respect to any Mortgage  Loan or REO Property  which
     remain  unreimbursed in whole or in part following the Cash  Liquidation or
     REO  Disposition  of such  Mortgage  Loan or REO  Property,  minus any such
     Advances  that were made with  respect  to  delinquencies  that  ultimately
     constituted  Excess  Special  Hazard  Losses,  Excess Fraud Losses,  Excess
     Bankruptcy Losses or Extraordinary Losses;

          (iv)  to the  Holders  of the  Class  M-1  Certificates,  the  Accrued
     Certificate  Interest thereon for such Distribution  Date, plus any Accrued
     Certificate   Interest   thereon   remaining   unpaid  from  any   previous
     Distribution Date, except as provided below;

          (v) to the Holders of the Class M-1  Certificates,  an amount equal to
     (x) the  Subordinate  Principal  Distribution  Amount  for  such  Class  of
     Certificates for each Loan Group for such Distribution  Date, minus (y) the
     amount of any Class A-P Collection  Shortfalls for each Loan Group for such
     Distribution Date or remaining unpaid for all

                                      -37-
<PAGE>

     previous  Distribution  Dates, to the extent the amounts available pursuant
     to CLAUSE (X) of SECTIONS 4.02(a)(vii),  (ix), (xi), (xiii), (xiv) and (xv)
     of this Series Supplement are insufficient therefore,  applied in reduction
     of the Certificate Principal Balance of the Class M-1 Certificates;

          (vi)  to the  Holders  of the  Class  M-2  Certificates,  the  Accrued
     Certificate  Interest thereon for such Distribution  Date, plus any Accrued
     Certificate   Interest   thereon   remaining   unpaid  from  any   previous
     Distribution Date, except as provided below;

          (vii) to the Holders of the Class M-2 Certificates, an amount equal to
     (x) the  Subordinate  Principal  Distribution  Amount  for  such  Class  of
     Certificates for each Loan Group for such Distribution  Date, minus (y) the
     amount of any Class A-P Collection  Shortfalls for each Loan Group for such
     Distribution Date or remaining unpaid for all previous  Distribution Dates,
     to the extent the  amounts  available  pursuant  to CLAUSE (X) of  SECTIONS
     4.02(a)(ix),  (xi),  (xiii),  (xiv) and (xv) of this Series  Supplement are
     insufficient  therefore,  applied in reduction of the Certificate Principal
     Balance of the Class M-2 Certificates;

          (viii)  to the  Holders  of the Class M-3  Certificates,  the  Accrued
     Certificate  Interest thereon for such Distribution  Date, plus any Accrued
     Certificate   Interest   thereon   remaining   unpaid  from  any   previous
     Distribution Date, except as provided below;

          (ix) to the Holders of the Class M-3 Certificates,  an amount equal to
     (x) the  Subordinate  Principal  Distribution  Amount  for  such  Class  of
     Certificates for each Loan Group for such  Distribution  Date minus (y) the
     amount of any Class A-P Collection  Shortfalls for each Loan Group for such
     Distribution Date or remaining unpaid for all previous  Distribution Dates,
     to the extent the  amounts  available  pursuant  to CLAUSE (x) of  SECTIONS
     4.02(a)(xi),   (xiii),  (xiv)  and  (xv)  of  this  Series  Supplement  are
     insufficient  therefore,  applied in reduction of the Certificate Principal
     Balance of the Class M-3 Certificates;

          (x)  to the  Holders  of  the  Class  B-1  Certificates,  the  Accrued
     Certificate  Interest thereon for such Distribution  Date, plus any Accrued
     Certificate   Interest   thereon   remaining   unpaid  from  any   previous
     Distribution Date, except as provided below;

          (xi) to the Holders of the Class B-1 Certificates,  an amount equal to
     (x) the  Subordinate  Principal  Distribution  Amount  for  such  Class  of
     Certificates for each Loan Group for such  Distribution  Date minus (y) the
     amount of any Class A-P Collection  Shortfalls for each Loan Group for such
     Distribution Date or remaining unpaid for all previous  Distribution Dates,
     to the extent the  amounts  available  pursuant  to CLAUSE (x) of  SECTIONS
     4.02(a)(xiii),  (xiv) and (xv) of this Series  Supplement are  insufficient
     therefore, applied in reduction of the Certificate Principal Balance of the
     Class B-1 Certificates;

          (xii) to the  Holders  of the  Class  B-2  Certificates,  the  Accrued
     Certificate  Interest thereon for such Distribution  Date, plus any Accrued
     Certificate   Interest   thereon   remaining   unpaid  from  any   previous
     Distribution Date, except as provided below;

                                      -38-
<PAGE>

          (xiii) to the Holders of the Class B-2  Certificates,  an amount equal
     to (x) the  Subordinate  Principal  Distribution  Amount  for such Class of
     Certificates for each Loan Group for such  Distribution  Date minus (y) the
     amount of any Class A-P Collection  Shortfalls for each Loan Group for such
     Distribution Date or remaining unpaid for all previous  Distribution Dates,
     to the extent the  amounts  available  pursuant  to CLAUSE (x) of  SECTIONS
     4.02(a)(xiv) and (xv) of this Series Supplement are insufficient therefore,
     applied in reduction of the Certificate  Principal Balance of the Class B-2
     Certificates;

          (xiv) to the Holders of the Class B-3 Certificates, an amount equal to
     (x) the Accrued  Certificate  Interest thereon for such Distribution  Date,
     plus any Accrued  Certificate  Interest  thereon  remaining unpaid from any
     previous  Distribution Date, except as provided below, minus (y) the amount
     of any  Class  A-P  Collection  Shortfalls  for each  Loan  Group  for such
     Distribution Date or remaining unpaid for all previous  Distribution Dates,
     to the  extent  the  amounts  available  pursuant  to CLAUSE (x) of Section
     4.02(a)(xv) of this Series Supplement are insufficient therefore;

          (xv) to the Holders of the Class B-3 Certificates,  an amount equal to
     (x) the  Subordinate  Principal  Distribution  Amount  for  such  Class  of
     Certificates for each Loan Group for such  Distribution  Date minus (y) the
     amount of any Class A-P Collection  Shortfalls for each Loan Group for such
     Distribution Date or remaining unpaid for all previous  Distribution Dates,
     applied in reduction of the Certificate  Principal Balance of the Class B-3
     Certificates;

          (xvi)  to the  Senior  Certificates  in a  Certificate  Group,  in the
     priority set forth in SECTION 4.02(b), (c), (d), (e) and (f) of this Series
     Supplement,  the portion, if any, of the Available Distribution Amounts for
     the related Loan Group remaining after the foregoing distributions, applied
     to reduce the Certificate  Principal Balances of such Senior  Certificates,
     but in no event  more than the  aggregate  of the  outstanding  Certificate
     Principal  Balances  of  each  such  Class  of  Senior  Certificates,   and
     thereafter,  to each Class of  Subordinate  Certificates  then  outstanding
     beginning  with such Class with the  Highest  Priority,  any portion of the
     related  Available  Distribution  Amount remaining after the related Senior
     Certificates have been retired, applied to reduce the Certificate Principal
     Balance of each such  Class of  Subordinate  Certificates,  but in no event
     more than the outstanding  Certificate Principal Balance of each such Class
     of Subordinate Certificates; and

          (xvii) to the Class R-II  Certificates,  the  balance,  if any, of the
     Available Distribution Amount for each Loan Group.

     Notwithstanding  the foregoing,  on any Distribution  Date, with respect to
the Class of Subordinate Certificates outstanding on such Distribution Date with
the Lowest Priority, or in the event the Subordinate  Certificates are no longer
outstanding,  the Senior  Certificates,  Accrued  Certificate  Interest  thereon
remaining unpaid from any previous  Distribution Date will be distributable only
to the extent  that (1) a  shortfall  in the  amounts  available  to pay Accrued
Certificate  Interest on any Class of Certificates results from an interest rate
reduction  in  connection  with a  Servicing  Modification,  or (2) such  unpaid
Accrued Certificate Interest was attributable to interest shortfalls relating to
the  failure  of the  Master  Servicer  to make  any

                                      -39-
<PAGE>

required Advance,  or the determination by the Master Servicer that any proposed
Advance would be a  Nonrecoverable  Advance with respect to the related Mortgage
Loan where such Mortgage Loan has not yet been the subject of a Cash Liquidation
or REO Disposition or the related Liquidation  Proceeds,  Insurance Proceeds and
REO Proceeds have not yet been distributed to the Certificateholders.

     (b) On  each  Distribution  Date  occurring  prior  to the  Credit  Support
Depletion Date, the Senior Principal  Distribution Amount for Loan Group I shall
be distributed in the following manner and priority:

          (i)  FIRST,  to the Class  R-I  Certificates,  until  the  Certificate
     Principal Balance thereof has been reduced to zero;

          (ii)  SECOND,  to the  Class P  Certificates,  until  the  Certificate
     Principal Balance thereof has been reduced to zero; and

          (iii)  THIRD,  to the Class  I-A-1 and Class I-A-2  Certificates,  pro
     rata, in accordance with their respective  Certificate  Principal  Balance,
     until the Certificate Principal Balances thereof have been reduced to zero.

     (c) On  each  Distribution  Date  occurring  prior  to the  Credit  Support
Depletion Date, the Senior Principal Distribution Amount for Loan Group II shall
be distributed in the following manner and priority:

          (i)  FIRST,  to the Class  R-II  Certificates,  until the  Certificate
     Principal Balance thereof has been reduced to zero; and

          (ii) SECOND,  to the Class II-A-1 and Class II-A-2  Certificates,  pro
     rata, in accordance with their respective  Certificate  Principal  Balance,
     until the Certificate Principal Balances thereof have been reduced to zero.

     (d) On any Distribution  Date prior to the occurrence of the Credit Support
Depletion  Date that occurs  after the  reduction of the  aggregate  Certificate
Principal  Balance of the Senior  Certificates of any Certificate Group to zero,
the  outstanding  Senior  Certificates  of the other  Certificate  Group will be
entitled to receive 100% of the mortgagor  prepayments  on the Mortgage Loans in
the Loan Group related to Senior  Certificates  that have been fully paid.  Such
amounts allocated to Senior Certificates shall be treated as part of the related
Available  Distribution  Amount and  distributed  as part of the related  Senior
Principal  Distribution  Amount in accordance  with the  priorities set forth in
SECTION  4.02(B)  and  SECTION  4.02(C),  as  applicable,  in  reduction  of the
Certificate Principal Balances thereof. Notwithstanding the foregoing, remaining
Senior Certificates will not be entitled to receive mortgagor prepayments on the
Mortgage  Loans in a Loan Group  related to Senior  Certificates  that have been
fully paid if the  following  two  conditions  are  satisfied:  (1) the weighted
average  of  the   Subordinate   Percentages  for  both  Loan  Groups  for  such
Distribution Date, weighted on the basis of the Stated Principal Balances of the
Mortgage  Loans in the related  Loan Group,  is at least two times the  weighted
average of the initial Subordinate Percentages for both Loan Groups,  calculated
on that basis and (2) the outstanding principal balance of the Mortgage Loans in
both Loan Groups  delinquent  60 days or more averaged over the last six months,
as a percentage of the aggregate outstanding

                                      -40-
<PAGE>

Certificate   Principal  Balance  of  the  Class  M  Certificates  and  Class  B
Certificates, is less than 50%.

     On any  Distribution  Date prior to the Credit  Support  Depletion  Date on
which the aggregate  Certificate Principal Balance of the Senior Certificates of
any Certificate  Group is greater than the aggregate Stated Principal Balance of
the Mortgage Loans in the related Loan Group in each case after giving effect to
distributions  to be made on such  Distribution  Date, (1) 100% of the mortgagor
prepayments  allocable to the Class M Certificates  and Class B Certificates  on
the  Mortgage  Loans  in the  other  Loan  Group  will  be  distributed  to such
undercollateralized  Senior  Certificates  in accordance with the priorities set
forth in SECTION 4.02(b) and SECTION 4.02(c), as applicable, in reduction of the
Certificate   Principal  Balances  thereof,   until  the  aggregate  Certificate
Principal  Balance of such  certificates  equals the aggregate  Stated Principal
Balance of the Mortgage  Loans in the related Loan Group and (2) an amount equal
to one month's interest at a rate of 6.00% per annum in the case of Loan Group I
and  5.50%  per  annum  in the  case  of Loan  Group  II on the  amount  of such
difference will be distributed, pro rata, from the Available Distribution Amount
for the other Loan Group  otherwise  allocable to the Class M  Certificates  and
Class B Certificates,  based on such amounts otherwise  allocable to the Class M
Certificates  and Class B  Certificates,  as  follows:  first to pay any  unpaid
interest  on  such  undercollateralized  Senior  Certificates  and  then  to pay
principal on those  certificates  in accordance with the priorities set forth in
SECTION 4.02(b) and SECTION 4.02(c), as applicable.

     (e) On or after the  occurrence  of the related  Credit  Support  Depletion
Date, all priorities  relating to  distributions as described in SECTION 4.02(B)
and (C) of this  Series  Supplement  in  respect of  principal  among the Senior
Certificates in the related  Certificate Group (other than the related Class A-P
Certificates)  will be  disregarded,  and (i) an  amount  equal to the Class A-P
Principal Distribution Amount for the related Loan Group shall be distributed to
the  Class A-P  Certificates  in that  Certificate  Group,  and (ii) the  Senior
Principal  Distribution Amount for the related Loan Group will be distributed to
the remaining Senior  Certificates in the related  Certificate Group (other than
the related Class A-P Certificates) PRO RATA in accordance with their respective
outstanding Certificate Principal Balances.

     (f)  After the  reduction  of the  Certificate  Principal  Balances  of all
Classes of Senior  Certificates  of a Certificate  Group (other than the related
Class  A-P  Certificates)  to zero  but  prior  to the  related  Credit  Support
Depletion  Date,  such Senior  Certificates  (other  than the related  Class A-P
Certificates) will be entitled to no further  distributions of principal thereon
and the applicable  Available  Distribution Amount will be distributed solely to
the  holders  of the  related  Class A-P  Certificates,  the  related  Class A-V
Certificates,  and  the  Subordinate  Certificates,  in each  case as  described
herein.

     (g) In  addition  to  the  foregoing  distributions,  with  respect  to any
Subsequent  Recoveries,  the Master  Servicer  shall deposit such funds into the
Custodial  Account  pursuant to SECTION  3.07(B)(III) of the Standard Terms. If,
after taking into account such Subsequent  Recoveries,  the amount of a Realized
Loss is reduced,  the amount of such  Subsequent  Recoveries  will be applied to
increase  the  Certificate   Principal  Balance  of  the  Class  of  Subordinate
Certificates  with the Highest  Priority to which  Realized  Losses,  other than
Excess Bankruptcy Losses,  Excess Fraud Losses, Excess Special Hazard Losses and
Extraordinary

                                      -41-
<PAGE>

Losses, have been allocated,  but not by more than the amount of Realized Losses
previously allocated to that Class of Certificates pursuant to SECTION 4.05. The
amount of any remaining  Subsequent  Recoveries  will be applied to increase the
Certificate  Principal  Balance of the Class of Certificates with the next Lower
Priority,  up to the amount of such Realized Losses previously allocated to that
Class of  Certificates  pursuant  to  SECTION  4.05.  Any  remaining  Subsequent
Recoveries will in turn be applied to increase the Certificate Principal Balance
of the Class of  Certificates  with the next Lower  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  payment in respect of Accrued  Certificate  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.

     (h) Each  distribution  with respect to a Book-Entry  Certificate  shall be
paid to the Depository,  as Holder thereof,  and the Depository  shall be solely
responsible for crediting 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.  None  of the  Trustee,  the
Certificate  Registrar,  the  Company  or the  Master  Servicer  shall  have any
responsibility  therefore except as otherwise provided by this Series Supplement
or applicable law.

     (i) Except as otherwise  provided in SECTION 9.01 of the Standard Terms, if
the Master Servicer  anticipates that a final  distribution  with respect to any
Class of  Certificates  will be made on a future  Distribution  Date, the Master
Servicer shall, no later than 40 days prior to such final  distribution,  notify
the Trustee and the Trustee  shall,  not earlier than the 15th day and not later
than  the  25th  day of the  month  next  preceding  the  month  of  such  final
distribution,  distribute,  or cause to be  distributed  to each  Holder of such
Class of  Certificates a notice to the effect that: (i) the Trustee  anticipates
that the final  distribution  with respect to such Class of Certificates will be
made on such  Distribution Date but only upon presentation and surrender of such
Certificates at the office of the Trustee or as otherwise specified therein, and
(ii) no interest shall accrue on such Certificates from and after the end of the
related Interest Accrual Period. In the event that  Certificateholders  required
to  surrender  their  Certificates  pursuant to SECTION  9.01(c) of the Standard
Terms do not surrender their  Certificates for final  cancellation,  the Trustee
shall  cause  funds  distributable  with  respect  to  such  Certificates  to be
withdrawn from the Certificate Account and credited to a separate escrow account
for the benefit of such Certificateholders as provided in SECTION 9.01(D) of the
Standard Terms.

     Section  4.03  STATEMENTS  TO  CERTIFICATEHOLDERS;   STATEMENTS  TO  RATING
                    AGENCIES;  EXCHANGE ACT  REPORTING. (See Section 4.03 of the
                    Standard Terms) and Exhibit Three hereto)

     Section  4.04  DISTRIBUTION  OF REPORTS  TO THE  TRUSTEE  AND THE  COMPANY;
                    ADVANCES BY THE MASTER  SERVICER. (See  Section  4.04 of the
                    Standard Terms)

                                      -42-
<PAGE>

     Section  4.05  ALLOCATION OF REALIZED LOSSES.

     Prior to each  Distribution  Date, the Master  Servicer shall determine the
total  amount  of  Realized  Losses,   if  any,  that  resulted  from  any  Cash
Liquidation, Servicing Modification, Debt Service Reduction, Deficient Valuation
or REO Disposition that occurred during the related Prepayment Period or, in the
case of a Servicing  Modification  that  constitutes a reduction of the interest
rate on a Mortgage Loan, the amount of the reduction in the interest  portion of
the  Monthly  Payment  due during the  related  Due  Period.  The amount of each
Realized  Loss shall be  evidenced  by an  Officers'  Certificate.  All Realized
Losses, other than Excess Special Hazard Losses,  Extraordinary  Losses,  Excess
Bankruptcy Losses or Excess Fraud Losses, shall be allocated as follows:  first,
to the Class B-3 Certificates  until the Certificate  Principal  Balance thereof
has been  reduced  to zero;  second,  to the  Class B-2  Certificates  until the
Certificate  Principal  Balance thereof has been reduced to zero;  third, to the
Class B-1 Certificates until the Certificate  Principal Balance thereof has been
reduced to zero;  fourth,  to the Class M-3  Certificates  until the Certificate
Principal  Balance  thereof has been  reduced to zero;  fifth,  to the Class M-2
Certificates until the Certificate Principal Balance thereof has been reduced to
zero;  sixth,  to the Class M-1  Certificates  until the  Certificate  Principal
Balance thereof has been reduced to zero; and, thereafter,  if any Realized Loss
is on a Discount  Mortgage  Loan,  to the related Class A-P  Certificates  in an
amount equal to the related Discount  Fraction of the principal  portion thereof
until the Certificate  Principal Balance of such Class A-P Certificates has been
reduced to zero,  and the  remainder  of such  Realized  Losses on the  Discount
Mortgage  Loans in the related Loan Group and the entire amount of such Realized
Losses  on  Non-Discount  Mortgage  Loans  in the  related  Loan  Group  will be
allocated  (i) among all the Group I Senior  Certificates  other  than the Class
I-A-P  Certificates  (in the case of a Realized  Loss on a Group I loan) and, in
the  case of the  interest  portion  of such  Realized  Loss,  the  Class  I-A-V
Certificates  (in the case of a  Realized  Loss on a Group I Loan) on a PRO RATA
basis; provided,  however, that Realized Losses otherwise allocable to the Class
I-A-1 Certificates will be allocated to the Class I-A-2 Certificates,  until the
Certificate  Principal Balance of the Class I-A-2  Certificates has been reduced
to zero and (ii)  among all of the Group II Senior  Certificates  other than the
Class II-A-P  Certificates  (in the case of a Realized  Loss on a Group II loan)
and, in the case of the interest  portion of such  Realized  Loss,  Class II-A-V
Certificates  (in the case of a Realized  Loss on a Group II Loan) on a PRO RATA
basis, as described  below;  provided,  however,  that Realized Losses otherwise
allocable to the Class II-A-1 Certificates will be allocated to the Class II-A-2
Certificates,  until the  Certificate  Principal  Balance  of the  Class  II-A-2
Certificates has been reduced to zero.

     The  principal  portion  of  any  Excess  Special  Hazard  Losses,   Excess
Bankruptcy  Losses,  Excess  Fraud Losses and  Extraordinary  Losses on Discount
Mortgage  Loans will be allocated to the related  Class A-P  Certificates  in an
amount equal to the related Discount Fraction thereof.  The Class I-A Percentage
or Class II-A  Percentage  (as  applicable)  of the  remainder of the  principal
portion of such losses on Discount  Mortgage  Loans and the Class I-A Percentage
or Class II-A  Percentage (as  applicable) of the entire amount of the principal
portion of such losses on  Non-Discount  Mortgage Loans will be allocated to (i)
the Group I Senior Certificates (other than the Class I-A-P Certificates and the
Class I-A-V  Certificates),  on a pro rata basis (in the case of a Realized Loss
on a Group I Loan),  and (ii) the Group II Senior  Certificates  (other than the
Class  II-A-P  Certificates  and the Class II-A-V  Certificates),  on a pro rata
basis (in the case of a Realized Loss on a Group II Loan).  The remainder of the
principal  portion of such losses on Discount  Mortgage  Loans and  Non-Discount
Mortgage  Loans  will be  allocated  to the  Class M

                                      -43-
<PAGE>

Certificates  and Class B Certificates on a pro rata basis. The interest portion
of such  losses  will be  allocated  to all of the  Certificates  in the related
Certificate Group, on a pro rata basis based on the Accrued Certificate Interest
thereon  payable  from  the  related  Loan  Group  in  respect  of  the  related
Distribution Date.

     On any  Distribution  Date,  Realized Losses will be allocated as set forth
herein after distributions of principal on the Certificates as set forth herein.

     As used  herein,  an  allocation  of a Realized  Loss on a "PRO RATA basis"
among two or more specified Classes of Certificates means an allocation on a PRO
RATA  basis,  among the  various  Classes  so  specified,  to each such Class of
Certificates  on the  basis  of their  then  outstanding  Certificate  Principal
Balances prior to giving effect to distributions to be made on such Distribution
Date in the case of the  principal  portion of a  Realized  Loss or based on the
Accrued  Certificate  Interest  thereon  payable  from the related Loan Group in
respect of such Distribution  Date (without regard to any Compensating  Interest
allocated  to the  Available  Distribution  Amount of such  Loan  Group for such
Distribution  Date) in the  case of an  interest  portion  of a  Realized  Loss;
PROVIDED that no such reduction shall reduce the aggregate Certificate Principal
Balance of the Certificates in the Certificate  Group related to Loan Group I or
Loan Group II, as applicable,  below the aggregate Stated  Principal  Balance of
the Mortgage  Loans in the related Loan Group.  Any  allocation of the principal
portion  of  Realized  Losses  (other  than  Debt  Service  Reductions)  to  the
Subordinate Certificates then outstanding with the Lowest Priority shall be made
by  operation  of the  definition  of  "Certificate  Principal  Balance"  and by
operation of the  provisions  of SECTION  4.02(A).  Allocations  of the interest
portions of Realized  Losses (other than any interest rate  reduction  resulting
from a  Servicing  Modification)  shall be made in  proportion  to the amount of
Accrued  Certificate  Interest and by operation  of the  definition  of "Accrued
Certificate  Interest" and by operation of the  provisions  of SECTION  4.02(A).
Allocations  of the  interest  portion  of a  Realized  Loss  resulting  from an
interest rate  reduction in connection  with a Servicing  Modification  shall be
made by operation  of the  provisions  of SECTION  4.02(a).  Allocations  of the
principal  portion of Debt Service  Reductions shall be made by operation of the
provisions  of  SECTION  4.02(a).  All  Realized  Losses  and all  other  losses
allocated  to a Class of  Certificates  hereunder  will be  allocated  among the
Certificates of such Class in proportion to the Percentage  Interests  evidenced
thereby; PROVIDED that if any Subclasses of the Class A-V Certificates have been
issued pursuant to SECTION  5.01(c) of the Standard Terms,  such Realized Losses
and other  losses  allocated  to the Class A-V  Certificates  shall be allocated
among  such  Subclasses  in  proportion  to the  respective  amounts  of Accrued
Certificate  Interest payable on such Distribution Date that would have resulted
absent such reductions.

                                      -44-
<PAGE>

     Section 4.06 REPORTS OF FORECLOSURES AND ABANDONMENT OF MORTGAGED PROPERTY.
                  (See Section 4.06 of the Standard Terms)

     Section 4.07 OPTIONAL  PURCHASE OF DEFAULTED  MORTGAGE LOANS.  (See Section
                  4.07 of the Standard Terms)

     Section 4.08 Surety BOND. (See Section 4.08 of the Standard Terms)

     Section 4.09 CLASS P RESERVE ACCOUNT.

     (a) The Trustee shall  establish a Class P Reserve Account on behalf of the
Holders  of the Class P  Certificates.  The Class P Reserve  Account  must be an
Eligible Account. The Class P Reserve Account shall be entitled "Class P Reserve
Account, U.S. Bank National  Association,  as Trustee for the benefit of Holders
of  Residential  Funding  Mortgage  Securities  I, Inc.,  Mortgage  Asset-Backed
Pass-Through Certificates, Series 2007-S8," (the "Class P Reserve Account"). All
amounts received by the Master Servicer in connection with Prepayment Charges on
the Prepayment  Charge Loans shall be deposited by the Master  Servicer into the
Class P Reserve  Account upon receipt  thereof.  Funds on deposit in the Class P
Reserve  Account  shall be held in trust by the  Trustee  for the  Holder of the
Class P Certificates. Amounts on deposit in the Class P Reserve Account shall be
held and remain uninvested, and the Trustee shall have no liability for interest
or other compensation  therein.  The Class P Reserve Account shall not be a part
of any REMIC hereunder.

     (b) On each Distribution Date, the Master Servicer on behalf of the Trustee
(or the Paying Agent appointed by the Trustee) shall withdraw the amount then on
deposit  in the Class P  Reserve  Account  representing  Prepayment  Charges  in
respect of the Prepayment Charge Loans received after the immediately  preceding
Distribution  Date,  and  distribute  such amounts to the Holders of the Class P
Certificates in accordance with Section 4.02(a)(ii)(Y).

                                      -45-
<PAGE>

                                   ARTICLE V

                                THE CERTIFICATES
                      (SEE ARTICLE V OF THE STANDARD TERMS)

                                      -46-
<PAGE>

                                   ARTICLE VI

                       THE COMPANY AND THE MASTER SERVICER
                     (SEE ARTICLE VI OF THE STANDARD TERMS)

                                      -47-
<PAGE>

                                  ARTICLE VII

                                     DEFAULT
                     (SEE ARTICLE VII OF THE STANDARD TERMS)

                                      -48-
<PAGE>

                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE
                    (SEE ARTICLE VIII OF THE STANDARD TERMS)

                                      -49-
<PAGE>

                                   ARTICLE IX

              TERMINATION OR OPTIONAL PURCHASE OF ALL CERTIFICATES
                     (SEE ARTICLE IX OF THE STANDARD TERMS)

                                      -50-
<PAGE>

                                   ARTICLE X

                                REMIC PROVISIONS

     Section  10.01 REMIC ADMINISTRATION.  (See  Section  10.01 of the  Standard
                    Terms)

     Section  10.02 MASTER    SERVICER;   REMIC    ADMINISTRATOR   AND   TRUSTEE
                    INDEMNIFICATION.  (See  Section 10.02 of the Standard Terms)

     Section  10.03 DESIGNATION OF REMIC(S).

     The REMIC  Administrator will make an election to treat the segregated pool
of assets  described  in the  definition  of REMIC I (as  defined  herein),  and
subject to this  Agreement  (including  the  Mortgage  Loans but  excluding  the
Initial Monthly Payment Fund and amounts,  including the prepayment  charges, to
which the Class P Certificates are entitled), as a REMIC ("REMIC I") for federal
income tax purposes.  The REMIC Administrator will make an election to treat the
segregated  pool of  assets  consisting  of the  Uncertificated  REMIC I Regular
Interests,  and subject to this  Agreement,  as a REMIC ("REMIC II") for federal
income tax purposes.

     The Uncertificated REMIC I Regular Interests will be "regular interests" in
REMIC I and the  Class  R-I  Certificates  will be the sole  class of  "residual
interests"  in REMIC I for purposes of the REMIC  Provisions  (as defined in the
Standard Terms).

     The Class I-A-1,  Class I-A-2,  Class II-A-1,  Class  II-A-2,  Class I-A-V,
Class I-A-P, Class II-A-V,  Class II-A-P, Class M-1, Class M-2, Class M-3, Class
B-1, Class B-2 and Class B-3 Certificates,  the Uncertificated  REMIC II Regular
Interests Z1 and Uncertificated  REMIC II Regular Interest Z2, the rights in and
to which will be  represented  by the related  Class A-V  Certificates,  will be
"regular interests" in the REMIC II, and the Class R-II Certificates will be the
sole class of "residual  interests" therein for purposes of the REMIC Provisions
(as defined in the Standard  Terms) under  federal  income tax law. On and after
the date of issuance of any Subclass of related Class A-V Certificates  pursuant
to SECTION 5.01(c) of the Standard  Terms,  any such Subclass will represent the
related  Uncertificated REMIC II Regular Interests Z1 or Uncertificated REMIC II
Regular  Interests  Z2, as  applicable,  specified by the initial  Holder of the
related  Class  A-V  Certificates   pursuant  to  said  Section.   The  Class  P
Certificates will not represent ownership of an interest in any REMIC.

     Section  10.04   DISTRIBUTIONS  ON  THE  UNCERTIFICATED   REMIC  I  REGULAR
                      INTERESTS, UNCERTIFICATED REMIC II REGULAR INTERESTS   AND
                      UNCERTIFICATED REMIC II REGULAR INTERESTS Z.

     (a) On each  Distribution Date the Trustee shall be deemed to distribute to
itself, as the holder of the Uncertificated REMIC I Regular Interests and to the
holder of the Class R-I  Certificate,  Uncertificated  Accrued  Interest  on the
Uncertificated  REMIC I Regular  Interests and Class R-I Certificate,  PRO RATA,
for such  Distribution  Date, plus any  Uncertificated  Accrued Interest thereon
remaining unpaid from any previous Distribution Date.

                                      -51-
<PAGE>

     (b) Distributions of principal from the Group I Loans shall be deemed to be
made to the Class R-I Certificate,  until the principal balance of the Class R-I
Certificate has been reduced to zero.

     (c) Distributions of principal from the Loan Groups shall then be deemed to
be made to the related  Uncertificated REMIC I Regular Interests first, so as to
keep the  Uncertificated  Principal Balance of each such related  Uncertificated
REMIC I Regular  Interest  ending with the designation "Y" equal to 0.01% of the
aggregate  Stated  Principal  Balance of the Mortgage  Loans in the related Loan
Group;  second,  so as to  keep  the  principal  balance  of each  such  related
Uncertificated REMIC I Regular Interest ending with the designation "X" equal to
0.01%  of the  Group  I  Subordinate  Component  or  the  Group  II  Subordinate
Component,  as the  case may be  (except  that if on any  Distribution  Date the
Subordinate  Component  for any Loan  Group  is  greater  than  the  Subordinate
Component  for such Loan Group on the  preceding  Distribution  Date,  the least
amount of  principal  shall be  distributed  to  Uncertificated  REMIC I Regular
Interests  I-X and II-X  such  that the  REMIC I  Subordinate  Balance  Ratio is
maintained);  and third,  any remaining  principal  shall be  distributed to the
related  Uncertificated  REMIC I Regular  Interest ZZZ.  Realized  Losses on the
Mortgage Loans shall be applied after all  distributions  have been made on each
Distribution Date first, so as to keep the  Uncertificated  Principal Balance of
each  Uncertificated  REMIC I Regular  Interest  ending with the designation "Y"
equal to 0.01% of the aggregate Stated  Principal  Balance of the Mortgage Loans
in the related Loan Group;  second,  Realized  Losses shall be applied after all
distributions  have  been  made on each  Distribution  Date,  so as to keep  the
principal  balance of each  Uncertificated  REMIC I Regular Interest ending with
the designation  "X" equal to 0.01% of the Group I Subordinate  Component or the
Group  II  Subordinate  Component,  as the case  may be  (except  that if on any
Distribution  Date the  Subordinate  Component for any Group of Loans is greater
than  the  Subordinate  Component  for such  Group  of  Loans  on the  preceding
Distribution  Date,  the least  amount of  Realized  Losses  shall be applied to
Uncertificated  REMIC I  Regular  Interests  I-X and II-X  such that the REMIC I
Subordinate  Balance Ratio is  maintained);  and third,  the remaining  Realized
Losses shall be allocated to the related Uncertificated REMIC I Regular Interest
ZZZ.

                                      -52-
<PAGE>

     (d) In  determining  from  time to time the  amounts  distributable  on the
Uncertificated REMIC I Regular Interests, Realized Losses allocated to the REMIC
II Regular  Interests shall be deemed  allocated to the  Uncertificated  REMIC I
Regular Interests  corresponding to the related Loan Group in which the Realized
Loss has occurred.

     (e) Notwithstanding the deemed  distributions on the Uncertificated REMIC I
Regular Interests  described in this SECTION 10.04,  distributions of funds from
the Certificate Account shall be made only in accordance with SECTION 4.02.

     Section 10.05 COMPLIANCE WITH WITHHOLDING REQUIREMENTS.

     Notwithstanding  any other provision of this Agreement,  the Trustee or any
Paying  Agent,  as  applicable,   shall  comply  with  all  federal  withholding
requirements  respecting payments to  Certificateholders,  including interest or
original  issue  discount  payments or advances  thereof that the Trustee or any
Paying Agent, as applicable,  reasonably believes are applicable under the Code.
The consent of Certificateholders shall not be required for such withholding. In
the event the Trustee or any Paying  Agent,  as  applicable,  does  withhold any
amount from interest or original issue discount  payments or advances thereof to
any Certificateholder pursuant to federal withholding requirements,  the Trustee
or any Paying Agent,  as applicable,  shall indicate the amount withheld to such
Certificateholder pursuant to the terms of such requirements.

                                      -53-
<PAGE>

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

     Section 11.01 AMENDMENT. (See Section 11.01 of the Standard Terms)

     Section 11.02 RECORDATION OF AGREEMENT, COUNTERPARTS. (See Section 11.02 of
                   the Standard Terms)

     Section 11.03 LIMITATION  ON RIGHTS  OF  CERTIFICATEHOLDERS.  (See  Section
                   11.03 of the Standard Terms)

     Section 11.04 GOVERNING LAWS. (See Section 11.04 of the Standard Terms)

     Section 11.05 NOTICES.

All  demands and  notices  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 (except for notices to the Trustee which shall be deemed to have
been duly  given  only  when  received),  to the  appropriate  address  for each
recipient  listed in the table below or, in each case, such other address as may
hereafter be furnished  in writing to the Master  Servicer,  the Trustee and the
Company, as applicable:

               Recipient                       Address
               ---------                       -------
Company                            8400 Normandale Lake Boulevard
                                   Suite 250, Minneapolis, Minnesota 55437,
                                   Attention: President

Master Servicer                    2255 N. Ontario Street, Suite 400
                                   Burbank, California 91504-2130,
                                   Attention: Managing Director/Master Servicing

Trustee                            U.S. Bank National Association
                                   Mail Code: EP-MN-WS3D
                                   60 Livingston Avenue
                                   St. Paul, Minnesota 55107-2292
                                   Attention: Structured Finance/RFMSI
                                   2007-S8

Fitch Ratings                      One State Street Plaza
                                   New York, New York  10004

Standard & Poor's                  55 Water Street
                                   New York, New York 10041

Any notice  required or permitted to be mailed to a  Certificateholder  shall be
given by first class  mail,  postage  prepaid,  at the address of such Holder as
shown  in the  Certificate  Register.  Any  notice  so  mailed  within  the time
prescribed in this Agreement  shall be  conclusively  presumed to have been duly
given, whether or not the Certificateholder receives such notice.

                                      -54-
<PAGE>

     Section 11.06  REQUIRED  NOTICES  TO RATING  AGENCY AND  SUBSERVICER.  (See
                    Section 11.06 of the Standard Terms)

     Section 11.07  SEVERABILITY  OF  PROVISIONS.  (See   Section  11.07  of the
                    Standard Terms)

     Section 11.08  SUPPLEMENTAL PROVISIONS FOR  RESECURITIZATION.  (See Section
                    11.08 of the Standard Terms)

     Section 11.09  ALLOCATION OF VOTING RIGHTS.

     97.0%  of  all  Voting   Rights  shall  be  allocated   among   Holders  of
Certificates,  other  than  the  Interest  Only  Certificates  and  the  Class R
Certificates, in proportion to the outstanding Certificate Principal Balances of
their  respective  Certificates,  1.0% of all Voting  Rights  shall be allocated
among the Holders of the Class  I-A-V  Certificates,  1.0% of all Voting  Rights
shall be allocated among the Holders of the Class II-A-V  Certificates  and 0.5%
and 0.5% of all Voting Rights shall be allocated  among the Holders of the Class
R-I  and  Class  R-II  Certificates,  respectively,  in  accordance  with  their
respective Percentage Interests.

     Section 11.10  NO PETITION. (See Section 11.10 of the Standard Terms).

                                      -55-
<PAGE>

                                  ARTICLE XII

                       COMPLIANCE WITH REGULATION AB (SEE
                       ARTICLE XII OF THE STANDARD TERMS)

                                      -56-
<PAGE>

     IN WITNESS WHEREOF,  the Company,  the Master Servicer and the Trustee have
caused their names to be signed hereto by their  respective  officers  thereunto
duly  authorized  and their  respective  seals,  duly  attested,  to be hereunto
affixed, all as of the day and year first above written.

[Seal]                                          RESIDENTIAL FUNDING MORTGAGE
                                                     SECURITIES I, INC.

Attest:                                         By:
        ------------------------------------       -----------------------------
Name:  Marguerite Steffes                       Name:  Heather Anderson
Title: Vice President                           Title: Vice President

[Seal]                                          RESIDENTIAL FUNDING COMPANY, LLC

Attest:                                         By:
        ------------------------------------       -----------------------------
Name:  Heather Anderson                         Name:  Marguerite Steffes
Title: Associate                                Title: Associate

[Seal]                                          U.S. BANK NATIONAL ASSOCIATION,
                                                AS TRUSTEE

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

<PAGE>

STATE OF MINNESOTA )
                   ) ss.:
COUNTY OF HENNEPIN )

     On the _____ day of August, 2007 before me, a notary public in and for said
State, personally appeared Heather Anderson,  known to me to be a Vice President
of Residential Funding Mortgage Securities I, Inc., one of the corporations that
executed  the  within  instrument,  and also  known to me to be the  person  who
executed  it on behalf of said  corporation,  and  acknowledged  to me that such
corporation executed the within instrument.

     IN WITNESS  WHEREOF,  I have  hereunto  set my hand and affixed my official
seal the day and year in this certificate first above written.

                                  Notary Public

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

[Notarial Seal]

<PAGE>

STATE OF MINNESOTA )
                   ) ss.:
COUNTY OF HENNEPIN )

     On the ____ day of August,  2007 before me, a notary public in and for said
State, personally appeared Marguerite Steffes, known to me to be an Associate of
Residential  Funding Company,  LLC, one of the limited liability  companies 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.

                                  Notary Public

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

[Notarial Seal]

<PAGE>

STATE OF MINNESOTA )
                   ) ss.:
COUNTY OF RAMSEY   )

     On the ___ day of August,  2007 before me, a notary  public in and for said
State,  personally  appeared  _________________________,  known  to  me to be an
_________________________  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  national  banking  association  and
acknowledged to me that such national  banking  association  executed the within
instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                  Notary Public

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

[Notarial Seal]

<PAGE>

                                  EXHIBIT ONE-I

                             MORTGAGE LOAN SCHEDULE

                                  GROUP I LOANS

                    (Available from the Company upon request)

                                  EXHIBIT ONE-I

<PAGE>

                                 EXHIBIT ONE-II

                             MORTGAGE LOAN SCHEDULE

                                 GROUP II LOANS

                    (Available from the Company upon request)

                                 EXHIBIT ONE-II

<PAGE>

                                  EXHIBIT TWO-I

                         SCHEDULE OF DISCOUNT FRACTIONS

                                FOR GROUP I LOANS

                    (Available from the Company upon request)

                                  EXHIBIT TWO-I

<PAGE>

                                 EXHIBIT TWO-II

                       SCHEDULE OF DISCOUNT FRACTIONS FOR

                                 GROUP II LOANS

                    (Available from the Company upon request)

                                 EXHIBIT TWO-II

<PAGE>

                                  EXHIBIT THREE

                          INFORMATION TO BE INCLUDED IN
                       MONTHLY DISTRIBUTION DATE STATEMENT

     (i) the applicable Record Date, Determination Date and Distribution Date;

     (ii) the aggregate amount of payments received with respect to the Mortgage
Loans, including prepayment amounts;

     (iii) the Servicing Fee and Subservicing Fee payable to the Master Servicer
and the Subservicer;

     (iv) the amount of any other fees or expenses  paid and the identity of the
party receiving such fees or expenses;

     (v) (a) the amount of such distribution to the  Certificateholders  of such
Class applied to reduce the Certificate  Principal Balance thereof,  and (b) the
aggregate amount included therein representing Principal Prepayments;

     (vi)  the  amount  of  such  distribution  to  Holders  of  such  Class  of
Certificates allocable to interest;

     (vii) if the  distribution  to the Holders of such Class of Certificates is
less than the full amount that would be  distributable  to such Holders if there
were sufficient funds available therefor, the amount of the shortfall;

     (viii)  the  aggregate  Certificate  Principal  Balance  of each  Class  of
Certificates  before and after giving effect to the amounts  distributed on such
Distribution Date, separately  identifying any reduction thereof due to Realized
Losses other than pursuant to an actual distribution of principal;

     (ix) for each Loan Group, the weighted  average  remaining term to maturity
of the Mortgage  Loans after giving  effect to the amounts  distributed  on such
Distribution Date;

     (x) for  each  Loan  Group,  the  weighted  average  Mortgage  Rates of the
Mortgage  Loans  after  giving  effect  to  the  amounts   distributed  on  such
Distribution Date;

     (xi) if  applicable,  the  Special  Hazard  Amount,  Fraud Loss  Amount and
Bankruptcy  Amount as of the close of  business on the  applicable  Distribution
Date;

     (xii) for each Loan Group, the number and Stated  Principal  Balance of the
Mortgage  Loans after  giving  effect to the  distribution  of principal on such
Distribution  Date and the number of Mortgage  Loans at the beginning and end of
the preceding Due Period;

     (xiii)  for each  Loan  Group,  on the  basis of the  most  recent  reports
furnished to it by  Sub-Servicers,  the number and Stated Principal  Balances of
Mortgage  Loans that are Delinquent

                                 EXHIBIT THREE-I

<PAGE>

(A) 30-59 days, (B) 60-89 days and (C) 90 or more days and the number and Stated
Principal Balance of Mortgage Loans that are in foreclosure;

     (xiv) for each Loan Group, the aggregate amount of Realized Losses for such
Distribution Date;

     (xv) the  amount,  terms and  general  purpose of any Advance by the Master
Servicer pursuant to SECTION 4.04 of the Standard Terms;

     (xvi) any material modifications, extensions or waivers to the terms of the
Mortgage Loans during the Due Period or that have  cumulatively  become material
over time;

     (xvii) any material breaches of Mortgage Loan representations or warranties
or covenants in the Agreement.

     (xviii) the related Subordinate Principal Distribution Amount;

     (xix)  in the  aggregate  and for  each  Loan  Group,  the  number,  Stated
Principal Balance and actual principal balance of REO Properties;

     (xx) the aggregate Accrued  Certificate  Interest remaining unpaid, if any,
for each Class of Certificates,  after giving effect to the distribution made on
such Distribution Date;

     (xxi)  the  Pass-Through  Rate  with  respect  to each  Class of Class  A-V
Certificates;

     (xxii) the  Notional  Amount with  respect to each class of  Interest  Only
Certificates;

     (xxiii) the occurrence of the Credit Support Depletion Date;

     (xxiv) the Senior Accelerated  Distribution  Percentages applicable to such
distribution;

     (xxv) the Senior  Percentages  and  Subordinate  Class  Percentage for such
Distribution Date;

     (xxvi) in the  aggregate and for each Loan Group,  the aggregate  amount of
any recoveries on previously foreclosed loans; and

     (xxvii) payment made from the Class P Reserve Account on such  Distribution
Date and the balance of the Class P Reserve  Account after giving effect to such
amounts.

In the case of information furnished pursuant to CLAUSES (v) and (vi) above, the
amounts  shall be expressed  as a dollar  amount per  Certificate  with a $1,000
denomination.

The    Trustee's    internet    website    will    initially   be   located   at
http://www.usbank.com/mbs.  To receive  this  statement  via first  class  mail,
telephone the Trustee at 1 (800) 934-6802.

                                EXHIBIT THREE-2

<PAGE>

                                  EXHIBIT FOUR

                     STANDARD TERMS OF POOLING AND SERVICING
                       AGREEMENT DATED AS OF JULY 1, 2007

[See Standard Terms of Pooling and Servicing Agreement at [Tab 5] of the closing
set]

                                 EXHIBIT FOUR-I

<PAGE>

================================================================================

                                STANDARD TERMS OF
                         POOLING AND SERVICING AGREEMENT

                            Dated as of July 1, 2007

                 Residential Funding Mortgage Securities I, Inc.

                       Mortgage Pass-Through Certificates

================================================================================

<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE

ARTICLE I     DEFINITIONS......................................................1

    Section 1.01    Definitions................................................1

    Section 1.02    Use of Words and Phrases..................................33

ARTICLE II    CONVEYANCE OF MORTGAGE LOANS;  ORIGINAL
              ISSUANCE OF CERTIFICATES........................................34

    Section 2.01    Conveyance of Mortgage Loans..............................34

    Section 2.02    Acceptance by Trustee.....................................41

    Section 2.03    Representations, Warranties and Covenants of the
                    Master Servicer and the Company...........................42

    Section 2.04    Representations and Warranties of Residential Funding.....44

    Section 2.05    Execution and Authentication of Certificates/Issuance
                    of Certificates Evidencing Interests in REMIC I...........46

    Section 2.06    Conveyance of Uncertificated REMIC I and REMIC II
                    Regular Interests; Acceptance by the Trustee..............46

    Section 2.07    Issuance of Certificates Evidencing Interests in
                    REMIC II..................................................46

    Section 2.08    Purposes and Powers of the Trust..........................46

ARTICLE III   ADMINISTRATION AND SERVICING OF MORTGAGE LOANS..................47

    Section 3.01    Master Servicer to Act as Servicer........................47

    Section 3.02    Subservicing Agreements Between Master Servicer and
                    Subservicers; Enforcement of Subservicers' and
                    Sellers' Obligations......................................49

    Section 3.03    Successor Subservicers....................................50

    Section 3.04    Liability of the Master Servicer..........................50

    Section 3.05    No Contractual Relationship Between Subservicer and
                    Trustee or Certificateholders.............................51

    Section 3.06    Assumption or Termination of Subservicing Agreements
                    by Trustee................................................51

    Section 3.07    Collection of Certain Mortgage Loan Payments;
                    Deposits to Custodial Account.............................51

    Section 3.08    Subservicing Accounts; Servicing Accounts.................54

    Section 3.09    Access to Certain Documentation and Information
                    Regarding the Mortgage Loans..............................56

    Section 3.10    Permitted Withdrawals from the Custodial Account..........56

                                       i
<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

                                                                            PAGE

    Section 3.11    Maintenance of the Primary Insurance Policies;
                    Collections Thereunder....................................58

    Section 3.12    Maintenance of Fire Insurance and Omissions and
                    Fidelity Coverage.........................................59

    Section 3.13    Enforcement of Due-on-Sale Clauses; Assumption and
                    Modification Agreements; Certain Assignments..............60

    Section 3.14    Realization Upon Defaulted Mortgage Loans.................62

    Section 3.15    Trustee to Cooperate; Release of Custodial Files..........66

    Section 3.16    Servicing and Other Compensation; Compensating Interest...67

    Section 3.17    Reports to the Trustee and the Company....................68

    Section 3.18    Annual Statement as to Compliance and Servicing
                    Assessment................................................68

    Section 3.19    Annual Independent Public Accountants' Servicing Report...69

    Section 3.20    Rights of the Company in Respect of the Master Servicer...69

    Section 3.21    Administration of Buydown Funds...........................70

    Section 3.22    Advance Facility..........................................70

ARTICLE IV    PAYMENTS TO CERTIFICATEHOLDERS..................................74

    Section 4.01    Certificate Account.......................................74

    Section 4.02    Distributions.............................................75

    Section 4.03    Statements to Certificateholders; Statements to Rating
                    Agencies; Exchange Act Reporting..........................75

    Section 4.04    Distribution of Reports to the Trustee and the Company;
                    Advances by the Master Servicer...........................77

    Section 4.05    Allocation of Realized Losses.............................79

    Section 4.06    Reports of Foreclosures and Abandonment of
                    Mortgaged Property........................................79

    Section 4.07    Optional Purchase of Defaulted Mortgage Loans.............79

    Section 4.08    Surety Bond...............................................80

ARTICLE V     THE CERTIFICATES................................................80

    Section 5.01    The Certificates..........................................80

    Section 5.02    Registration of Transfer and Exchange of Certificates.....83

    Section 5.03    Mutilated, Destroyed, Lost or Stolen Certificates.........89

    Section 5.04    Persons Deemed Owners.....................................89

                                       ii
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                                TABLE OF CONTENTS
                                  (continued)

                                                                            PAGE

    Section 5.05    Appointment of Paying Agent...............................90

    Section 5.06    U.S.A. Patriot Act Compliance.............................90

    Section 5.07    Exchangeable Certificates.................................90

ARTICLE VI    THE COMPANY AND THE MASTER SERVICER.............................90

    Section 6.01    Respective Liabilities of the Company and the
                    Master Servicer...........................................90

    Section 6.02    Merger or Consolidation of the Company or the Master
                    Servicer; Assignment of Rights and Delegation of
                    Duties by Master Servicer.................................91

    Section 6.03    Limitation on Liability of the Company, the Master
                    Servicer and Others.......................................92

    Section 6.04    Company and Master Servicer Not to Resign.................92

ARTICLE VII   DEFAULT.........................................................93

    Section 7.01    Events of Default.........................................93

    Section 7.02    Trustee or Company to Act; Appointment of Successor.......95

    Section 7.03    Notification to Certificateholders........................96

    Section 7.04    Waiver of Events of Default...............................96

ARTICLE VIII  CONCERNING THE TRUSTEE..........................................97

    Section 8.01    Duties of Trustee.........................................97

    Section 8.02    Certain Matters Affecting the Trustee.....................98

    Section 8.03    Trustee Not Liable for Certificates or Mortgage Loans....100

    Section 8.04    Trustee May Own Certificates.............................100

    Section 8.05    Master Servicer to Pay Trustee's Fees and Expenses;
                    Indemnification..........................................100

    Section 8.06    Eligibility Requirements for Trustee.....................101

    Section 8.07    Resignation and Removal of the Trustee...................102

    Section 8.08    Successor Trustee........................................103

    Section 8.09    Merger or Consolidation of Trustee.......................103

    Section 8.10    Appointment of Co-Trustee or Separate Trustee............104

    Section 8.11    Appointment of Custodians................................105

    Section 8.12    Appointment of Office or Agency..........................105

ARTICLE IX    TERMINATION OR OPTIONAL PURCHASE OF ALL CERTIFICATES...........105

                                       iii
<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

                                                                            PAGE

    Section 9.01    Optional Purchase by the Master Servicer of All
                    Certificates; Termination Upon Purchase by the Master
                    Servicer or Liquidation of All Mortgage Loans............105

    Section 9.02    Additional Termination Requirements......................109

    Section 9.03    Termination of Multiple REMICs...........................110

ARTICLE X     REMIC PROVISIONS...............................................110

    Section 10.01   REMIC Administration.....................................110

    Section 10.02   Master Servicer, REMIC Administrator and Trustee
                    Indemnification..........................................114

    Section 10.03   Designation of REMIC(s)..................................114

    Section 10.04   Distributions on the Uncertificated REMIC I and
                    REMIC II Regular Interests...............................114

    Section 10.05   Compliance with Withholding Requirements.................114

ARTICLE XI    MISCELLANEOUS PROVISIONS.......................................115

    Section 11.01   Amendment................................................115

    Section 11.02   Recordation of Agreement; Counterparts...................117

    Section 11.03   Limitation on Rights of Certificateholders...............118

    Section 11.04   Governing Law............................................118

    Section 11.05   Notices..................................................119

    Section 11.06   Required Notices to Rating Agency and Subservicer........119

    Section 11.07   Severability of Provisions...............................120

    Section 11.08   Supplemental Provisions for Resecuritization.............120

    Section 11.09   Allocation of Voting Rights..............................120

    Section 11.10   No Petition..............................................120

ARTICLE XII   COMPLIANCE WITH REGULATION AB..................................121

    Section 12.01   Intent of Parties; Reasonableness........................121

    Section 12.02   Additional Representations and Warranties of the
                    Trustee..................................................121

    Section 12.03   Information to be Provided by the Trustee................122

    Section 12.04   Report on Assessment of Compliance and Attestation.......122

    Section 12.05   Indemnification; Remedies................................123

                                       iv

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

EXHIBITS

Exhibit A:        Form of Class A Certificate
Exhibit A-I:      Form of Class X Certificate
Exhibit B:        Form of Class M Certificate
Exhibit C:        Form of Class B Certificate
Exhibit C-I:      Form of Class P Certificate
Exhibit C-II:     Form of Class SB Certificate
Exhibit D:        Form of Class R Certificate
Exhibit E:        Form of Seller/Servicer Contract
Exhibit F:        Forms of Request for Release
Exhibit G-1:      Form of Transfer Affidavit and Agreement
Exhibit G-2:      Form of Transferor Certificate
Exhibit H:        Form of Investor Representation Letter
Exhibit I:        Form of Transferor Representation Letter
Exhibit J:        Form of Rule 144A Investment Representation Letter
Exhibit K:        Text of Amendment to Pooling and Servicing Agreement Pursuant
                  to  Section 11.01(e) for  a Limited Guaranty
Exhibit L:        Form of Limited Guaranty
Exhibit M:        Form of Lender Certification for Assignment of Mortgage Loan
Exhibit N:        Request for Exchange Form
Exhibit O:        Form of Form 10-K Certification
Exhibit P:        Form of Back-Up Certification to Form 10-K Certificate
Exhibit Q:        Information to be Provided by the Master Servicer to the
                  Rating  Agencies  Relating to Reportable Modified Mortgage
                  Loans
Exhibit R:        Servicing Criteria
Exhibit S:        Form of Exchange Notice

<PAGE>

     This is the Standard Terms of Pooling and Servicing Agreement,  dated as of
July 1, 2007 (the  "Standard  Terms",  and as  incorporated  by reference into a
Series  Supplement  dated as of the date  specified  therein,  the  "Pooling and
Servicing  Agreement"  or  "Agreement"),   among  RESIDENTIAL  FUNDING  MORTGAGE
SECURITIES I, INC., as the company  (together with its permitted  successors and
assigns,  the "Company"),  RESIDENTIAL FUNDING COMPANY,  LLC, as master servicer
(together with its permitted successors and assigns, the "Master Servicer"), and
the  trustee  named  in the  applicable  Series  Supplement  (together  with its
permitted successors and assigns, the "Trustee").

                             PRELIMINARY STATEMENT:

     The Company  intends to sell  certain  mortgage  pass-through  certificates
(collectively,  the  "Certificates"),  to be  issued  under  each  Agreement  in
multiple  classes,  which in the aggregate  will evidence the entire  beneficial
ownership interest in the Mortgage Loans.

     In consideration of the mutual agreements  herein  contained,  the Company,
the Master Servicer and the Trustee agree as follows:

                                    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  meanings  specified  in this
Article.

     ACCRETION TERMINATION DATE:  As defined in the Series Supplement.

     ACCRUAL CERTIFICATES:  As defined in the Series Supplement.

     ACCRUED CERTIFICATE INTEREST: With respect to each Distribution Date, as to
any  Class  or  Subclass  of   Certificates   (other  than  any  Principal  Only
Certificates),  interest  accrued during the related  Interest Accrual Period at
the related  Pass-Through Rate on the Certificate  Principal Balance or Notional
Amount thereof  immediately prior to such Distribution Date. Accrued Certificate
Interest will be calculated on the basis of a 360-day year, consisting of twelve
30-day  months.  In each  case  Accrued  Certificate  Interest  on any  Class or
Subclass of Certificates will be reduced by the amount of:

            (i)   Prepayment  Interest  Shortfalls on all Mortgage  Loans or, if
                  the Mortgage Pool is comprised of two or more Loan Groups,  on
                  the  Mortgage  Loans in the related  Loan Group (to the extent
                  not  offset  by  the  Master   Servicer   with  a  payment  of
                  Compensating Interest as PROVIDED in Section 4.01),

<PAGE>

           (ii)   the interest  portion  (adjusted to the Net Mortgage  Rate (or
                  the  Modified  Net  Mortgage  Rate in the  case of a  Modified
                  Mortgage  Loan)) of Realized  Losses on all Mortgage Loans or,
                  if the Mortgage  Pool is comprised of two or more Loan Groups,
                  on the  Mortgage  Loans in the related  Loan Group  (including
                  Excess  Special  Hazard  Losses,  Excess Fraud Losses,  Excess
                  Bankruptcy  Losses and  Extraordinary  Losses)  not  allocated
                  solely  to  one  or  more  specific  Classes  of  Certificates
                  pursuant to Section 4.05,

          (iii)   the interest portion of Advances that were (A) previously made
                  with  respect  to a  Mortgage  Loan  or  REO  Property  on all
                  Mortgage Loans or, if the Mortgage Pool is comprised of two or
                  more Loan Groups,  on the  Mortgage  Loans in the related Loan
                  Group,   which  remained   unreimbursed   following  the  Cash
                  Liquidation  or REO  Disposition  of such Mortgage Loan or REO
                  Property or (B) made with respect to  delinquencies  that were
                  ultimately  determined  to be Excess  Special  Hazard  Losses,
                  Excess Fraud Losses, Excess Bankruptcy Losses or Extraordinary
                  Losses  on all  Mortgage  Loans or,  if the  Mortgage  Pool is
                  comprised of two or more Loan Groups, on the Mortgage Loans in
                  the related Loan Group, and

           (iv)   any other interest shortfalls not covered by the subordination
                  PROVIDED by the related Class M Certificates and related Class
                  B  Certificates,  including  interest that is not  collectible
                  from the Mortgagor pursuant to the Relief Act,

with  all  such  reductions  allocated  (A)  among  all of the  Certificates  in
proportion to their respective amounts of Accrued  Certificate  Interest payable
on such  Distribution Date absent such reductions or (B) if the Mortgage Pool is
comprised  of two or more Loan Groups,  the related  Senior  Percentage  of such
reductions among the related Senior Certificates in proportion to the amounts of
Accrued  Certificate  Interest  payable  from  the  related  Loan  Group on such
Distribution Date absent such reductions,  with the remainder of such reductions
allocated among the holders of the related Class M Certificates  and the related
Class B  Certificates  in  proportion  to their  respective  amounts  of Accrued
Certificate  Interest payable on such  Distribution Date absent such reductions.
In  addition  to that  portion  of the  reductions  described  in the  preceding
sentence that are allocated to any Class of Class B Certificates or any Class of
Class M  Certificates,  Accrued  Certificate  Interest  on each Class of Class B
Certificates  or each  Class  of Class M  Certificates  will be  reduced  by the
interest portion (adjusted to the Net Mortgage Rate) of Realized Losses that are
allocated  solely to such Class of Class B Certificates or such Class of Class M
Certificates pursuant to Section 4.05.

         ADDENDUM  AND  ASSIGNMENT   AGREEMENT:   The  Addendum  and  Assignment
Agreement, dated as of January 31, 1995, between MLCC and the Master Servicer.

         ADDITIONAL  COLLATERAL:  Any of the following  held, in addition to the
related  Mortgaged  Property,  as security for a Mortgage  Loan:  (i) all money,
securities,  security  entitlements,   accounts,  general  intangibles,  payment
rights,  instruments,  documents,  deposit  accounts,  certificates  of deposit,
commodities  contracts  and other  investment  property  and other  property  of
whatever kind or description now existing or hereafter acquired which is pledged
as  security  for  the  repayment  of  such  Mortgage  Loan,  (ii)   third-party
guarantees,  and (A) all money,  securities,  security  entitlements,  accounts,
general intangibles,  payment rights, instruments,

                                       -2-
<PAGE>

documents, deposit accounts,  certificates of deposit, commodities contracts and
other investment property and other property of whatever kind or description now
existing or hereafter acquired which is pledged as collateral for such guarantee
or (B) any mortgaged  property  securing the performance of such  guarantee,  or
(iii) such other collateral as may be set forth in the Series Supplement.

     ADDITIONAL  COLLATERAL  LOAN:  Each  Mortgage  Loan  that is  supported  by
Additional Collateral.

     ADJUSTED  MORTGAGE RATE:  With respect to any Mortgage Loan and any date of
determination,  the Mortgage Rate borne by the related  Mortgage Note,  less the
rate at which the related Subservicing Fee accrues.

     ADVANCE:  As to any Mortgage Loan, any advance made by the Master Servicer,
pursuant to Section 4.04.

     ADVANCE FACILITY: As defined in Section 3.22.

     ADVANCE FACILITY NOTICE: As defined in Section 3.22.

     ADVANCE FACILITY TRUSTEE: As defined in Section 3.22.

     ADVANCING PERSON: As defined in Section 3.22.

     ADVANCE    REIMBURSEMENT    AMOUNTS:    As   defined   in   Section   3.22.

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

     AMBAC:  Ambac  Assurance  Corporation  (formerly  known as AMBAC  Indemnity
Corporation).

     AMOUNT HELD FOR FUTURE DISTRIBUTION:  As to any Distribution Date and, with
respect to any Mortgage Pool that is comprised of two or more Loan Groups,  each
Loan Group, the total of the amounts held in the Custodial  Account at the close
of business on the preceding  Determination  Date on account of (i)  Liquidation
Proceeds, Subsequent Recoveries, Insurance Proceeds, Curtailments, Mortgage Loan
purchases  made pursuant to Section 2.02,  2.03,  2.04 or 4.07 and Mortgage Loan
substitutions  made  pursuant  to Section  2.03 or 2.04  received or made in the
month of such Distribution Date (other than such Liquidation Proceeds, Insurance
Proceeds and purchases of Mortgage Loans that the Master  Servicer has deemed to
have been received in the preceding month in accordance  with Section  3.07(b)),
and Principal  Prepayments in Full made after the related Prepayment Period, and
(ii) payments which represent  early receipt of scheduled  payments of principal
and interest due on a date or dates subsequent to the related Due Date.

                                      -3-
<PAGE>

     APPRAISED  VALUE:  As to any  Mortgaged  Property,  the  lesser  of (i) the
appraised value of such Mortgaged  Property based upon the appraisal made at the
time of the  origination of the related  Mortgage Loan, and (ii) the sales price
of the Mortgaged  Property at such time of origination,  except in the case of a
Mortgaged  Property  securing a refinanced or modified Mortgage Loan as to which
it is  either  the  appraised  value  determined  above or the  appraised  value
determined in an appraisal at the time of  refinancing or  modification,  as the
case may be.

     ASSIGNED  CONTRACTS:  With  respect to any Pledged  Asset Loan:  the Credit
Support Pledge Agreement; the Funding and Pledge Agreement, among GMAC Mortgage,
LLC, National Financial  Services  Corporation and the Mortgagor or other person
pledging  the related  Pledged  Assets;  the  Additional  Collateral  Agreement,
between  GMAC  Mortgage,  LLC and the  Mortgagor  or other  person  pledging the
related  Pledged  Assets;  or such  other  contracts  as may be set forth in the
Series Supplement.

     ASSIGNMENT: An assignment of the Mortgage, notice of transfer or equivalent
instrument,  in recordable  form,  sufficient under the laws of the jurisdiction
wherein the related Mortgaged  Property is located to reflect of record the sale
of the Mortgage Loan to the Trustee for the benefit of Certificateholders, which
assignment,  notice of transfer or equivalent  instrument  may be in the form of
one  or  more  blanket  assignments  covering  Mortgages  secured  by  Mortgaged
Properties located in the same county, if permitted by law and accompanied by an
Opinion of Counsel to that effect.

     ASSIGNMENT AGREEMENT:  The Assignment and Assumption  Agreement,  dated the
Closing  Date,  between  Residential  Funding  and the  Company  relating to the
transfer and assignment of the Mortgage Loans.

     ASSIGNMENT AGREEMENT AND AMENDMENT OF SECURITY INSTRUMENT:  With respect to
a Sharia  Mortgage  Loan,  the  agreement  between the consumer and the co-owner
pursuant  to which all of the  co-owner's  interest as a  beneficiary  under the
related Sharia Mortgage Loan Security  Instrument and the co-owner's interest in
the related Mortgaged Property is conveyed to a subsequent owner, which may take
the form of an "Assignment  Agreement" and an "Amendment of Security Instrument"
or  an  "Assignment  Agreement  and  Amendment  of  Security   Instrument",   as
applicable.

     ASSIGNMENT OF PROPRIETARY  LEASE:  With respect to a Cooperative  Loan, the
assignment of the related Cooperative Lease from the Mortgagor to the originator
of the Cooperative Loan.

     AVAILABLE  DISTRIBUTION  AMOUNT:  As to any  Distribution  Date  and,  with
respect to any Mortgage  Pool  comprised  of two or more Loan Groups,  each Loan
Group, an amount equal to (a) the sum of (i) the amount relating to the Mortgage
Loans on deposit in the  Custodial  Account as of the close of  business  on the
immediately preceding  Determination Date, including any Subsequent  Recoveries,
and  amounts   deposited  in  the  Custodial  Account  in  connection  with  the
substitution  of Qualified  Substitute  Mortgage  Loans,  (ii) the amount of any
Advance made on the  immediately  preceding  Certificate  Account  Deposit Date,
(iii) any amount deposited in the Certificate Account on the related Certificate
Account Deposit Date pursuant to the second paragraph of Section  3.12(a),  (iv)
any amount deposited in the Certificate Account pursuant to Section 4.07 and any
amounts  deposited in the Custodial  Account  pursuant to Section 9.01,

                                      -4-
<PAGE>

(v) any amount that the Master  Servicer is not  permitted to withdraw  from the
Custodial Account or the Certificate  Account pursuant to Section 3.16(e),  (vi)
any amount  received  by the  Trustee  pursuant to the Surety Bond in respect of
such  Distribution Date and (vii) the proceeds of any Pledged Assets received by
the Master  Servicer,  reduced by (b) the sum as of the close of business on the
immediately  preceding  Determination  Date of (x) the  Amount  Held for  Future
Distribution,  and (y) amounts  permitted to be withdrawn by the Master Servicer
from the Custodial  Account in respect of the Mortgage Loans pursuant to clauses
(ii)-(x),  inclusive,  of  Section  3.10(a).  Such  amount  shall be  determined
separately for each Loan Group. Additionally,  with respect to any Mortgage Pool
that is  comprised  of two or more  Loan  Groups,  if on any  Distribution  Date
Compensating  Interest  provided  pursuant  to  Section  3.16(e)  is  less  than
Prepayment Interest Shortfalls incurred on the Mortgage Loans in connection with
Principal  Prepayments in Full received during the related Prepayment Period and
Curtailments made in the prior calendar month, such Compensating  Interest shall
be allocated on such Distribution Date to the Available  Distribution Amount for
each Loan Group on a pro rata basis in accordance with the respective amounts of
such Prepayment  Interest Shortfalls incurred on the Mortgage Loans in such Loan
Group in respect of such Distribution Date.

     BANKRUPTCY CODE: The Bankruptcy Code of 1978, as amended.

     BANKRUPTCY  LOSS: With respect to any Mortgage Loan, a Deficient  Valuation
or Debt Service Reduction; PROVIDED, HOWEVER, that neither a Deficient Valuation
nor a Debt Service Reduction shall be deemed a Bankruptcy Loss hereunder so long
as the Master  Servicer  has  notified  the  Trustee in writing  that the Master
Servicer is diligently  pursuing any remedies that may exist in connection  with
the  representations and warranties made regarding the related Mortgage Loan and
either (A) the related  Mortgage  Loan is not in default with regard to payments
due  thereunder or (B)  delinquent  payments of principal and interest under the
related  Mortgage  Loan  and  any  premiums  on any  applicable  primary  hazard
insurance  policy and any related  escrow  payments in respect of such  Mortgage
Loan  are  being  advanced  on a  current  basis  by the  Master  Servicer  or a
Subservicer, in either case without giving effect to any Debt Service Reduction.

     BOOK-ENTRY  CERTIFICATE:  Any  Certificate  registered  in the  name of the
Depository or its nominee,  and designated as such in the Preliminary  Statement
to the Series Supplement.

     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, the State of Michigan,
the State of  California , the State of Illinois or the State of Minnesota  (and
such other  state or states in which the  Custodial  Account or the  Certificate
Account are at the time  located) are required or authorized by law or executive
order to be closed.

     BUYDOWN  FUNDS:  Any  amount  contributed  by  the  seller  of a  Mortgaged
Property, the Company or other source in order to enable the Mortgagor to reduce
the payments  required to be made from the Mortgagor's  funds in the early years
of a  Mortgage  Loan.  Buydown  Funds  are not part of the Trust  Fund  prior to
deposit into the Custodial or Certificate Account.

     BUYDOWN  MORTGAGE LOAN: Any Mortgage Loan as to which a specified amount of
interest  is paid out of  related  Buydown  Funds in  accordance  with a related
buydown agreement.

                                      -5-
<PAGE>

     CAPITALIZATION  REIMBURSEMENT AMOUNT: As to any Distribution Date and, with
respect to any Mortgage  Pool  comprised  of two or more Loan Groups,  each Loan
Group,  the amount of  Advances  or  Servicing  Advances  that were added to the
Stated  Principal  Balance of all  Mortgage  Loans or, if the  Mortgage  Pool is
comprised of two or more Loan Groups,  on the Mortgage Loans in the related Loan
Group,  during the prior calendar month and reimbursed to the Master Servicer or
Subservicer  on  or  prior  to  such   Distribution  Date  pursuant  to  Section
3.10(a)(vii),  plus the related  Capitalization  Reimbursement  Shortfall Amount
remaining  unreimbursed  from any prior  Distribution Date and reimbursed to the
Master Servicer or Subservicer on or prior to such Distribution Date.

     CAPITALIZATION  REIMBURSEMENT SHORTFALL AMOUNT: As to any Distribution Date
and,  with  respect to any Mortgage  Pool  comprised of two or more Loan Groups,
each Loan  Group,  the  amount,  if any,  by which the  amount  of  Advances  or
Servicing  Advances  that were  added to the  Stated  Principal  Balance  of all
Mortgage  Loans  (or,  if the  Mortgage  Pool is  comprised  of two or more Loan
Groups,  on the Mortgage  Loans in the related Loan Group)  during the preceding
calendar  month exceeds the amount of principal  payments on the Mortgage  Loans
included in the  Available  Distribution  Amount (or,  if the  Mortgage  Pool is
comprised  of two or more Loan  Groups,  Available  Distribution  Amount for the
related Loan Group) for that Distribution Date.

     CALL RIGHTS: As defined in Section 9.01(f).

     CASH LIQUIDATION:  As to any defaulted  Mortgage Loan other than a Mortgage
Loan as to which an REO  Acquisition  occurred,  a  determination  by the Master
Servicer that it has received all Insurance Proceeds,  Liquidation  Proceeds and
other payments or cash recoveries  which the Master  Servicer  reasonably and in
good faith expects to be finally recoverable with respect to such Mortgage Loan.

     CERTIFICATE ACCOUNT DEPOSIT DATE: As to any Distribution Date, the Business
Day prior thereto.

     CERTIFICATEHOLDER  OR HOLDER:  The Person in whose  name a  Certificate  is
registered  in  the  Certificate  Register,  and,  in  respect  of  any  Insured
Certificates,  the  Certificate  Insurer to the extent of  Cumulative  Insurance
Payments,  except that  neither a  Disqualified  Organization  nor a  Non-United
States  Person shall be a holder of a Class R  Certificate  for purposes  hereof
and, solely for the purpose of giving any consent or direction  pursuant to this
Agreement, any Certificate, other than a Class R Certificate,  registered in the
name of the Company,  the Master  Servicer or any  Subservicer  or any Affiliate
thereof shall be deemed not to be  outstanding  and the  Percentage  Interest or
Voting Rights  evidenced  thereby shall not be taken into account in determining
whether the requisite amount of Percentage  Interests or Voting Rights necessary
to effect any such consent or direction has been obtained. All references herein
to "Holders" or  "Certificateholders"  shall  reflect the rights of  Certificate
Owners as they may  indirectly  exercise such rights  through the Depository and
participating members thereof,  except as otherwise specified herein;  PROVIDED,
HOWEVER,  that the  Trustee  shall be  required  to  recognize  as a "Holder" or
"Certificateholder" only the Person in whose name a Certificate is registered in
the Certificate Register.

     CERTIFICATE INSURER: As defined in the Series Supplement.

                                      -6-
<PAGE>

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

     CERTIFICATE PRINCIPAL BALANCE: With respect to each Certificate (other than
any Interest Only  Certificate),  on any date of determination,  an amount equal
to:

            (i)   the Initial Certificate  Principal Balance of such Certificate
                  as specified on the face thereof, plus

           (ii)   any Subsequent  Recoveries added to the Certificate  Principal
                  Balance of such Certificate pursuant to Section 4.02, plus

          (iii)   in the case of each  Accrual  Certificate,  an amount equal to
                  the  aggregate  Accrued  Certificate  Interest  added  to  the
                  Certificate  Principal  Balance  thereof prior to such date of
                  determination, minus

           (iv)   the  sum of  (x)  the  aggregate  of  all  amounts  previously
                  distributed   with  respect  to  such   Certificate   (or  any
                  predecessor Certificate) and applied to reduce the Certificate
                  Principal  Balance thereof pursuant to Section 4.02(a) and (y)
                  the  aggregate  of all  reductions  in  Certificate  Principal
                  Balance  deemed to have occurred in  connection  with Realized
                  Losses which were previously allocated to such Certificate (or
                  any predecessor Certificate) pursuant to Section 4.05;

provided,  that the  Certificate  Principal  Balance of the Class of Subordinate
Certificates with the Lowest Priority at any given time shall be further reduced
by an amount equal to the  Percentage  Interest  evidenced  by such  Certificate
multiplied  by the  excess,  if  any,  of (A)  the  then  aggregate  Certificate
Principal  Balance of all Classes of Certificates  then outstanding over (B) the
then aggregate Stated Principal Balance of the Mortgage Loans.

     CERTIFICATE REGISTER AND CERTIFICATE REGISTRAR: The register maintained and
the registrar appointed pursuant to Section 5.02.

     CLASS: Collectively,  all of the Certificates bearing the same designation.
The initial Class A-V  Certificates  and any Subclass thereof issued pursuant to
Section 5.01(c) shall be a single Class for purposes of this Agreement.

     CLASS A-P CERTIFICATE:  Any one of the  Certificates  designated as a Class
A-P Certificate.

     CLASS A-P COLLECTION SHORTFALL: With respect to the Cash Liquidation or REO
Disposition of a Discount Mortgage Loan, any Distribution Date and, with respect
to any Mortgage Pool comprised of two or more Loan Groups,  any Loan Group,  the
excess of the amount described in Section 4.02(b)(i)(C)(1) (for the related Loan
Group, if applicable) over the amount described in Section 4.02(b)(i)(C)(2).

     CLASS A-P PRINCIPAL DISTRIBUTION AMOUNT: As defined in Section 4.02.

                                      -7-
<PAGE>

     CLASS A-V CERTIFICATE:  Any one of the  Certificates  designated as a Class
A-V Certificate, including any Subclass thereof.

     CLASS B CERTIFICATE:  Any one of the Certificates designated as a Class B-1
Certificate, Class B-2 Certificate or Class B-3 Certificate.

     CLASS M CERTIFICATE:  Any one of the Certificates designated as a Class M-1
Certificate, Class M-2 Certificate or Class M-3 Certificate.

     CLASS P CERTIFICATE:  Any one of the  Certificates  designated as a Class P
Certificate.

     CLASS SB CERTIFICATE:  Any one of the Certificates designated as a Class SB
Certificate.

     CLASS X CERTIFICATE:  Any one of the  Certificates  designated as a Class X
Certificate.

     CLOSING DATE: As defined in the Series Supplement.

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

     COMBINED  COLLATERAL  LLC:  Combined  Collateral  LLC, a  Delaware  limited
liability company.

     COMMISSION: The Securities and Exchange Commission.

     COMPENSATING  INTEREST:  With respect to any  Distribution  Date, and, with
respect to any Mortgage  Pool  comprised  of two or more Loan Groups,  each Loan
Group,  an  amount  equal  to  Prepayment  Interest  Shortfalls  resulting  from
Principal   Prepayments  in  Full  during  the  related  Prepayment  Period  and
Curtailments  during the prior  calendar  month and  included  in the  Available
Distribution  Amount for such Loan Group on such Distribution Date, but not more
than the lesser of (a) one-twelfth of 0.125% of the Stated Principal  Balance of
the  Mortgage  Loans or, if the  Mortgage  Pool is comprised of two or more Loan
Groups, the Mortgage Loans in the related Loan Group immediately  preceding such
Distribution  Date and (b) the sum of the  Servicing Fee and all income and gain
on amounts held in the Custodial Account and the Certificate Account and payable
to the Certificateholders with respect to the Mortgage Loans or, if the Mortgage
Pool is comprised of two or more Loan Groups,  the Mortgage Loans in the related
Loan  Group and such  Distribution  Date;  provided  that for  purposes  of this
definition  the  amount of the  Servicing  Fee will not be reduced  pursuant  to
Section 7.02(a) except as may be required  pursuant to the last sentence of such
paragraph.

     COOPERATIVE:  A  private,  cooperative  housing  corporation  which owns or
leases land and all or part of a building or  buildings,  including  apartments,
spaces used for commercial  purposes and common areas therein and whose board of
directors authorizes, among other things, the sale of Cooperative Stock.

     COOPERATIVE APARTMENT:  A dwelling unit in a multi-dwelling  building owned
or leased by a Cooperative,  which unit the Mortgagor has an exclusive  right to
occupy pursuant to the terms of a proprietary lease or occupancy agreement.

                                      -8-
<PAGE>

     COOPERATIVE  LEASE:  With respect to a Cooperative  Loan,  the  proprietary
lease or occupancy agreement with respect to the Cooperative  Apartment occupied
by the Mortgagor and relating to the related  Cooperative  Stock, which lease or
agreement  confers an exclusive right to the holder of such Cooperative Stock to
occupy such apartment.

     COOPERATIVE  LOANS:  Any  of  the  Mortgage  Loans  made  in  respect  of a
Cooperative  Apartment,  evidenced  by a  Mortgage  Note  and  secured  by (i) a
Security  Agreement,  (ii) the related  Cooperative Stock Certificate,  (iii) an
assignment of the Cooperative  Lease, (iv) financing  statements and (v) a stock
power (or other  similar  instrument),  and  ancillary  thereto,  a  recognition
agreement  between the Cooperative  and the originator of the Cooperative  Loan,
each of which was  transferred  and assigned to the Trustee  pursuant to Section
2.01 and are from time to time held as part of the Trust Fund.

     COOPERATIVE   STOCK:  With  respect  to  a  Cooperative  Loan,  the  single
outstanding class of stock,  partnership  interest or other ownership instrument
in the related Cooperative.

     COOPERATIVE  STOCK  CERTIFICATE:  With respect to a Cooperative  Loan,  the
stock certificate or other instrument evidencing the related Cooperative Stock.

     CREDIT REPOSITORY: Equifax, Transunion and Experian, or their successors in
interest.

     CREDIT SUPPORT  DEPLETION  DATE: The first  Distribution  Date on which the
Certificate Principal Balances of the Subordinate Certificates have been reduced
to zero.

     CREDIT SUPPORT PLEDGE AGREEMENT: The Credit Support Pledge Agreement, dated
as of November 24, 1998, among the Master Servicer, GMAC Mortgage, LLC, Combined
Collateral  LLC and The First  National  Bank of Chicago  (now known as JPMorgan
Chase Bank, N.A.), as custodian.

     CUMULATIVE INSURANCE PAYMENTS: As defined in the Series Supplement.

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

     CUSTODIAL ACCOUNT: The custodial account or accounts created and maintained
pursuant to Section 3.07 in the name of a depository  institution,  as custodian
for the holders of  Residential  Funding  Mortgage  Securities I, Inc.  mortgage
asset-backed pass-through certificates issued by the Company in series from time
to time,  into which the amounts set forth in Section  3.07 shall be  deposited.
Any such account or accounts shall be an Eligible Account.

     CUSTODIAL  AGREEMENT:  An  agreement  that may be  entered  into  among the
Company, the Master Servicer,  the Trustee and a Custodian pursuant to which the
Custodian will hold certain  documents  relating to the Mortgage Loans on behalf
of the Trustee.

     CUSTODIAL  FILE:  Any mortgage  loan  document in the Mortgage File that is
required to be delivered to the Trustee or Custodian pursuant to Section 2.01(b)
of this Agreement.

     CUSTODIAN: A custodian appointed pursuant to a Custodial Agreement.

                                      -9-
<PAGE>

     CUT-OFF  DATE  PRINCIPAL  BALANCE:  As to any  Mortgage  Loan,  the  unpaid
principal  balance  thereof  at the  Cut-off  Date  after  giving  effect to all
installments  of principal  due on or prior  thereto (or due during the month of
the Cut-Off Date), whether or not received.

     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
constituting a Deficient  Valuation or any reduction that results in a permanent
forgiveness of principal.

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

     DEFINITIVE   CERTIFICATE:   Any   Certificate   other  than  a   Book-Entry
Certificate.

     DELETED  MORTGAGE  LOAN: A Mortgage  Loan replaced or to be replaced with a
Qualified Substitute Mortgage Loan.

     DELINQUENT:  As used herein, a Mortgage Loan is considered to be: "30 to 59
days" or "30 or more days"  delinquent  when a payment due on any  scheduled due
date  remains  unpaid  as of the  close of  business  on the last  business  day
immediately  prior to the next following  monthly  scheduled due date; "60 to 89
days" or "60 or more days"  delinquent  when a payment due on any  scheduled due
date  remains  unpaid  as of the  close of  business  on the last  business  day
immediately prior to the second following monthly scheduled due date; and so on.
The  determination  as to whether a Mortgage Loan falls into these categories is
made as of the close of business  on the last  business  day of each month.  For
example, a Mortgage Loan with a payment due on July 1 that remained unpaid as of
the close of  business on July 31 would then be  considered  to be 30 to 59 days
delinquent.  Delinquency  information  as of the Cut-off Date is determined  and
prepared as of the close of business on the last business day immediately  prior
to the Cut-off Date.

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

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

     DESTROYED  MORTGAGE  NOTE:  A  Mortgage  Note the  original  of  which  was
permanently lost or destroyed and has not been replaced.

                                      -10-
<PAGE>

     DESTROYED OBLIGATION TO PAY: An Obligation to Pay the original of which was
permanently lost or destroyed and has not been replaced.

     DETERMINATION DATE: As defined in the Series Supplement.

     DISCOUNT  FRACTION:  With  respect  to each  Discount  Mortgage  Loan,  the
fraction  expressed as a percentage,  the numerator of which is the Discount Net
Mortgage Rate minus the Net Mortgage Rate (or the initial Net Mortgage Rate with
respect to any Discount Mortgage Loans as to which the Mortgage Rate is modified
pursuant to 3.07(a)) for such Mortgage Loan and the  denominator of which is the
Discount Net Mortgage Rate. The Discount  Fraction with respect to each Discount
Mortgage Loan is set forth as an exhibit attached to the Series Supplement.

     DISCOUNT  MORTGAGE  LOAN:  Any Mortgage Loan having a Net Mortgage Rate (or
the initial Net Mortgage  Rate) of less than the Discount Net Mortgage  Rate per
annum and any Mortgage  Loan deemed to be a Discount  Mortgage  Loan pursuant to
the definition of Qualified Substitute Mortgage Loan.

     DISCOUNT NET MORTGAGE RATE: As defined in the Series Supplement.

     DISQUALIFIED  ORGANIZATION:  Any  organization  defined as a  "disqualified
organization"  under  Section  860E(e)(5)  of the  Code,  and  if not  otherwise
included,  any of the following:  (i) the United States,  any State or political
subdivision  thereof,  any  possession  of the United  States,  or any agency or
instrumentality of any of the foregoing (other than an instrumentality  which is
a  corporation  if all of its  activities  are  subject  to tax and,  except for
Freddie  Mac, a  majority  of its board of  directors  is not  selected  by such
governmental unit), (ii) a foreign government,  any international  organization,
or any agency or instrumentality of any of the foregoing, (iii) any organization
(other than certain farmers' cooperatives  described in Section 521 of the Code)
which is exempt from the tax imposed by Chapter 1 of the Code (including the tax
imposed by Section 511 of the Code on unrelated  business taxable income),  (iv)
rural electric and telephone  cooperatives described in Section 1381(a)(2)(C) of
the Code, (v) any "electing large  partnership," as defined in Section 775(a) of
the Code and (vi) any other Person so  designated  by the Trustee  based upon an
Opinion  of  Counsel  that the  holding of an  Ownership  Interest  in a Class R
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 a liability  for any  federal  tax  imposed  under the Code that would not
otherwise be imposed but for the Transfer of an Ownership  Interest in a Class R
Certificate   to  such  Person.   The  terms   "United   States",   "State"  and
"international  organization"  shall have the meanings set forth in Section 7701
of the Code or successor provisions.

     DISTRIBUTION  DATE:  The  25th  day of any  month  beginning  in the  month
immediately  following the month of the initial issuance of the Certificates or,
if such 25th day is not a Business Day, the Business Day  immediately  following
such 25th day.

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

     DUE PERIOD: With respect to any Distribution Date, the one-month period set
forth in the Series Supplement.

                                      -11-
<PAGE>

     ELIGIBLE ACCOUNT:  An account that is any of the following:  (i) maintained
with a depository  institution the debt  obligations of which have been rated by
each Rating Agency in its highest rating  available,  or (ii) in the case of the
Custodial Account, a trust account or accounts maintained in the corporate trust
department  of U.S.  Bank  National  Association,  or  (iii)  in the case of the
Certificate  Account,  a trust  account or accounts  maintained in the corporate
trust department of the Trustee,  or (iv) an account or accounts of a depository
institution  acceptable  to each Rating  Agency (as evidenced in writing by each
Rating  Agency  that use of any such  account  as the  Custodial  Account or the
Certificate  Account  will  not  reduce  the  rating  assigned  to any  Class of
Certificates by such Rating Agency below the lower of the then-current rating or
the rating  assigned to such  Certificates as of the Closing Date by such Rating
Agency);  provided that, if Standard & Poor's is a Rating  Agency,  such account
shall be rated A-2 or above by Standard & Poor's and, if such account shall have
its rating  downgraded  below A-2 by  Standard & Poor's,  such  account  will be
replaced.

     EVENT OF DEFAULT: As defined in Section 7.01.

     EXCESS  BANKRUPTCY  LOSS: Any Bankruptcy  Loss, or portion  thereof,  which
exceeds the then applicable Bankruptcy Amount.

     EXCESS FRAUD LOSS:  Any Fraud Loss, or portion  thereof,  which exceeds the
then applicable Fraud Loss Amount.

     EXCESS SPECIAL  HAZARD LOSS:  Any Special Hazard Loss, or portion  thereof,
that exceeds the then applicable Special Hazard Amount.

     EXCESS SUBORDINATE  PRINCIPAL AMOUNT: With respect to any Distribution Date
on which the aggregate Certificate Principal Balance of the Class of Subordinate
Certificates, then outstanding with the Lowest Priority is to be reduced to zero
and on which Realized  Losses are to be allocated to such class or classes,  the
excess,  if any,  of (i) the amount that would  otherwise  be  distributable  in
respect  of  principal  on  such  class  or  classes  of  Certificates  on  such
Distribution  Date over (ii) the excess,  if any, of the  aggregate  Certificate
Principal Balance of such class or classes of Certificates  immediately prior to
such  Distribution  Date  over the  aggregate  amount of  Realized  Losses to be
allocated to such classes of Certificates on such  Distribution  Date as reduced
by any amount calculated pursuant to Section 4.02(b)(i)(E).  With respect to any
Mortgage  Pool  that  is  comprised  of two or  more  Loan  Groups,  the  Excess
Subordinate  Principal Amount will be allocated between each Loan Group on a pro
rata basis in accordance with the amount of Realized Losses attributable to each
Loan Group and allocated to the Certificates on such Distribution Date.

     EXCHANGE ACT: The Securities and Exchange Act of 1934, as amended.

     EXTRAORDINARY  EVENTS:  Any of the following  conditions  with respect to a
Mortgaged  Property  (or, with respect to a Cooperative  Loan,  the  Cooperative
Apartment)  or Mortgage  Loan  causing or  resulting  in a loss which causes the
liquidation of such Mortgage Loan:

     (a) losses that are of  the type that would be covered by the fidelity bond
and the errors and omissions insurance policy required to be maintained pursuant
to Section 3.12(b) but are in excess of the coverage maintained thereunder;

                                      -12-
<PAGE>

     (b) nuclear reaction or nuclear radiation or radioactive contamination, all
whether controlled or uncontrolled, and whether such loss be direct or indirect,
proximate  or  remote or be in whole or in part  caused  by,  contributed  to or
aggravated  by a peril covered by the  definition  of the term  "Special  Hazard
Loss";

     (c) hostile or warlike action in time of peace or war,  including action in
hindering,  combating  or  defending  against an actual,  impending  or expected
attack:

          1.   by any government or sovereign  power, de jure or de facto, or by
               any authority maintaining or using military, naval or air forces;
               or

          2.   by military, naval or air forces; or

          3.   by an agent of any such government, power, authority or forces;

     (d) any weapon of war employing atomic fission or radioactive force whether
in time of peace or war; or

     (e) insurrection, rebellion, revolution, civil war, usurped power or action
taken by  governmental  authority in hindering,  combating or defending  against
such  an  occurrence,   seizure  or  destruction  under  quarantine  or  customs
regulations,  confiscation  by order of any government or public  authority;  or
risks of contraband or illegal transportation or trade.

     EXTRAORDINARY  LOSSES:  Any loss  incurred on a Mortgage  Loan caused by or
resulting from an Extraordinary Event.

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

     FDIC: Federal Deposit Insurance Corporation or any successor thereto.

     FINAL   DISTRIBUTION  DATE:  The  Distribution  Date  on  which  the  final
distribution  in respect of the  Certificates  will be made  pursuant to Section
9.01, which Final  Distribution  Date shall in no event be later than the end of
the 90-day liquidation period described in Section 9.02.

     FITCH: Fitch Ratings or its successor in interest.

     FORECLOSURE  PROFITS: As to any Distribution Date or related  Determination
Date and any  Mortgage  Loan,  the  excess,  if any,  of  Liquidation  Proceeds,
Insurance Proceeds and REO Proceeds (net of all amounts  reimbursable  therefrom
pursuant  to  Section  3.10(a)(ii))  in  respect  of each  Mortgage  Loan or REO
Property for which a Cash Liquidation or REO Disposition occurred in the related
Prepayment  Period over the sum of the unpaid principal balance of such Mortgage
Loan  or REO  Property  (determined,  in the  case  of an  REO  Disposition,  in
accordance  with Section 3.14) plus accrued and unpaid  interest at the Mortgage
Rate on such unpaid  principal  balance from the Due Date to which  interest was
last paid by the Mortgagor to the first day of the month  following the month in
which such Cash Liquidation or REO Disposition occurred.

                                      -13-
<PAGE>

     FORM 10-K CERTIFICATION: As defined in Section 4.03(f).

     FRAUD LOSSES: Realized Losses on Mortgage Loans as to which there was fraud
in the origination of such Mortgage Loan.

     FREDDIE  MAC:   Federal  Home  Loan  Mortgage   Corporation,   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 Certificate  Principal Balance greater than
zero, with the earliest  priority for payments  pursuant to Section 4.02(a),  in
the following  order:  Class M-1, Class M-2, Class M-3, Class B-1, Class B-2 and
Class B-3 Certificates.

     INDEPENDENT:  When used with respect to any specified Person,  means such a
Person who (i) is in fact  independent of the Company,  the Master  Servicer and
the Trustee,  or any Affiliate thereof,  (ii) does not have any direct financial
interest or any material indirect financial interest in the Company,  the Master
Servicer or the Trustee or in an Affiliate  thereof,  and (iii) is not connected
with the Company,  the Master  Servicer or the Trustee as an officer,  employee,
promoter,  underwriter,  trustee, partner, director or person performing similar
functions.

     INITIAL  CERTIFICATE  PRINCIPAL  BALANCE:  With  respect  to each  Class of
Certificates, the Certificate Principal Balance of such Class of Certificates as
of the Cut-off Date, as set forth in the Series Supplement.

     INITIAL MONTHLY PAYMENT FUND: An amount  representing  scheduled  principal
amortization and interest at the Net Mortgage Rate for the Due Date in the first
Due Period  commencing  subsequent to the Cut-off Date for those  Mortgage Loans
for which the Trustee will not be entitled to receive such payment,  and as more
specifically defined in the Series Supplement.

     INITIAL NOTIONAL AMOUNT:  With respect to any Class or Subclass of Interest
Only  Certificates,  the amount  initially  used as the principal  basis for the
calculation of any interest payment amount, as more specifically  defined in the
Series Supplement.

     INITIAL SUBORDINATE CLASS PERCENTAGE: As defined in the Series Supplement.

     INSURANCE PROCEEDS: Proceeds paid in respect of the Mortgage Loans pursuant
to any Primary Insurance Policy or any other related insurance policy covering a
Mortgage  Loan  (excluding  any  Certificate  Policy  (as  defined in the Series
Supplement)), to the extent such proceeds are payable to the mortgagee under the
Mortgage,  any  Subservicer,  the Master  Servicer  or the  Trustee  and are not
applied to the restoration of the related  Mortgaged  Property (or, with respect
to a Cooperative  Loan,  the related  Cooperative  Apartment) or released to the
Mortgagor in  accordance  with the  procedures  that the Master  Servicer  would
follow in servicing mortgage loans held for its own account.

     INSURER:  Any named  insurer  under  any  Primary  Insurance  Policy or any
successor thereto or the named insurer in any replacement policy.

                                      -14-
<PAGE>

     INTEREST ACCRUAL PERIOD: As defined in the Series Supplement.

     INTEREST  ONLY  CERTIFICATES:  A Class  or  Subclass  of  Certificates  not
entitled  to  payments  of  principal,  and  designated  as such  in the  Series
Supplement.  The Interest Only Certificates  will have no Certificate  Principal
Balance.

     INTERIM CERTIFICATION: As defined in Section 2.02.

     JUNIOR CERTIFICATEHOLDER: The Holder of not less than 95% of the Percentage
Interests of the Junior Class of Certificates.

     JUNIOR  CLASS  OF  CERTIFICATES:  The  Class  of  Subordinate  Certificates
outstanding  as of the date of the  repurchase  of a Mortgage  Loan  pursuant to
Section 4.07 herein that has the Lowest Priority.

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

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

     LOAN GROUP: Any group of Mortgage Loans designated as a separate loan group
in the Series Supplement.  The Certificates  relating to each Loan Group will be
designated in the Series Supplement. If the Mortgage Pool is comprised of two or
more Loan Groups, any of such Loan Groups.

     LOAN-TO-VALUE  RATIO:  As  of  any  date,  the  fraction,  expressed  as  a
percentage,  the  numerator  of which is the  current  principal  balance of the
related Mortgage Loan at the date of determination  and the denominator of which
is the Appraised Value of the related Mortgaged Property.

     LOWER  PRIORITY:  As  of  any  date  of  determination  and  any  Class  of
Subordinate  Certificates,  any other  Class of  Subordinate  Certificates  then
outstanding with a Certificate  Principal  Balance greater than zero, with later
priority for payments pursuant to Section 4.02(a).

     LOWEST PRIORITY: As of any date of determination,  the Class of Subordinate
Certificates  then outstanding with the latest priority for payments pursuant to
Section 4.02(a),  in the following order: Class B-3, Class B-2, Class B-1, Class
M-3, Class M-2 and Class M-1 Certificates.

                                      -15-
<PAGE>

     MATURITY DATE: The latest  possible  maturity date,  solely for purposes of
Section   1.860G-1(a)(4)(iii)   of  the  Treasury  regulations,   by  which  the
Certificate  Principal  Balance of each Class of  Certificates  (other  than the
Interest Only Certificates which have no Certificate Principal Balance) and each
Uncertificated REMIC Regular Interest would be reduced to zero, as designated in
the Series Supplement.

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

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

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

     MLCC: Merrill Lynch Credit Corporation, or its successor in interest.

     MODIFIED  MORTGAGE  LOAN:  Any Mortgage Loan that has been the subject of a
Servicing Modification.

     MODIFIED  MORTGAGE  RATE:  As to any Mortgage Loan that is the subject of a
Servicing Modification,  the Mortgage Rate minus the rate per annum by which the
Mortgage Rate on such Mortgage Loan was reduced.

     MODIFIED NET MORTGAGE  RATE: As to any Mortgage Loan that is the subject of
a  Servicing  Modification,  the Net  Mortgage  Rate minus the rate per annum by
which the Mortgage Rate on such Mortgage Loan was reduced.

     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  PAYMENT:  With respect to any  Mortgage  Loan  (including  any REO
Property) and any Due Date, the payment of principal and interest due thereon in
accordance with the amortization  schedule at the time applicable thereto (after
adjustment,  if any, for  Curtailments  and for Deficient  Valuations  occurring
prior to such Due Date but before any adjustment to such  amortization  schedule
by reason of any  bankruptcy,  other  than a  Deficient  Valuation,  or  similar
proceeding or any  moratorium  or similar  waiver or grace period and before any
Servicing Modification that constitutes a reduction of the interest rate on such
Mortgage Loan).

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

     MORTGAGE:  With respect to each  Mortgage  Note related to a Mortgage  Loan
which is not a Cooperative Loan, the mortgage, deed of trust or other comparable
instrument  creating  a first  lien on an  estate  in fee  simple  or  leasehold
interest  in real  property  securing  a  Mortgage  Note.  With  respect to each
Obligation to Pay related to a Sharia  Mortgage Loan,  the Sharia  Mortgage Loan
Security Instrument.

                                      -16-
<PAGE>

     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 LOANS:  Such of the mortgage loans,  including any Sharia Mortgage
Loans,  transferred and assigned to the Trustee pursuant to Section 2.01 as from
time to time are held or  deemed  to be held as a part of the  Trust  Fund,  the
Mortgage Loans  originally so held being identified in the initial Mortgage Loan
Schedule, and Qualified Substitute Mortgage Loans held or deemed held as part of
the  Trust  Fund  including,  without  limitation,  (i)  with  respect  to  each
Cooperative Loan, the related Mortgage Note, Security  Agreement,  Assignment of
Proprietary Lease, Cooperative Stock Certificate, Cooperative Lease and Mortgage
File and all rights  appertaining  thereto,  (ii) with  respect  to each  Sharia
Mortgage  Loan,  the related  Obligation to Pay,  Sharia  Mortgage Loan Security
Instrument,  Sharia Mortgage Loan Co-Ownership  Agreement,  Assignment Agreement
and  Amendment  of  Security   Instrument  and  Mortgage  File  and  all  rights
appertaining  thereto and (iii) with respect to each  Mortgage Loan other than a
Cooperative Loan or a Sharia Mortgage Loan, each related Mortgage Note, Mortgage
and Mortgage File and all rights appertaining thereto.

     MORTGAGE LOAN SCHEDULE: As defined in the Series Supplement.

     MORTGAGE  NOTE:   The  originally   executed  note  or  other  evidence  of
indebtedness  evidencing the  indebtedness of a Mortgagor under a Mortgage Loan,
together with any  modification  thereto.  With respect to each Sharia  Mortgage
Loan, the related Obligation to Pay.

     MORTGAGE POOL: The pool of mortgage  loans,  including all Loan Groups,  if
any, consisting of the Mortgage Loans.

     MORTGAGE  RATE:  As to any Mortgage  Loan,  the interest  rate borne by the
related  Mortgage  Note,  or any  modification  thereto  other than a  Servicing
Modification. As to any Sharia Mortgage Loan, the profit factor described in the
related  Obligation to Pay, or any  modification  thereto other than a Servicing
Modification.

     MORTGAGED  PROPERTY:  The underlying real property securing a Mortgage Loan
or,  with  respect to a  Cooperative  Loan,  the related  Cooperative  Lease and
Cooperative Stock.

     MORTGAGOR:  The  obligor on a Mortgage  Note,  or with  respect to a Sharia
Mortgage Loan, the consumer on an Obligation to Pay.

     NET MORTGAGE  RATE: As to each Mortgage  Loan, a per annum rate of interest
equal to the  Adjusted  Mortgage  Rate  less  the per  annum  rate at which  the
Servicing Fee is calculated.

     NON-DISCOUNT MORTGAGE LOAN: A Mortgage Loan that is not a Discount Mortgage
Loan.

     NON-PRIMARY  RESIDENCE  LOANS:  The Mortgage Loans designated as secured by
second or vacation  residences,  or by  non-owner  occupied  residences,  on the
Mortgage Loan Schedule.

     NON-UNITED STATES PERSON: Any Person other than a United States Person.

                                      -17-
<PAGE>

     NONRECOVERABLE  ADVANCE: Any Advance previously made or proposed to be made
by the Master  Servicer or Subservicer in respect of a Mortgage Loan (other than
a Deleted  Mortgage  Loan)  which,  in the good  faith  judgment  of the  Master
Servicer,  will not,  or,  in the case of a  proposed  Advance,  would  not,  be
ultimately  recoverable  by the Master  Servicer from related Late  Collections,
Insurance Proceeds,  Liquidation Proceeds,  REO Proceeds or amounts reimbursable
to the Master Servicer  pursuant to Section  4.02(a) hereof.  To the extent that
any Mortgagor is not obligated  under the related  Mortgage  documents to pay or
reimburse  any  portion of any  Servicing  Advances  that are  outstanding  with
respect  to the  related  Mortgage  Loan as a result of a  modification  of such
Mortgage Loan by the Master  Servicer,  which forgives  amounts which the Master
Servicer  or  Subservicer  had  previously  advanced,  and the  Master  Servicer
determines that no other source of payment or reimbursement for such advances is
available to it, such Servicing  Advances  shall be deemed to be  Nonrecoverable
Advances.  The  determination  by  the  Master  Servicer  that  it  has  made  a
Nonrecoverable   Advance  or  that  any  proposed  Advance  would  constitute  a
Nonrecoverable Advance, shall be evidenced by an Officers' Certificate delivered
to the Company, the Trustee and any Certificate Insurer.

     NONSUBSERVICED  MORTGAGE  LOAN:  Any  Mortgage  Loan  that,  at the time of
reference thereto, is not subject to a Subservicing Agreement.

     NOTIONAL  AMOUNT:  With  respect to any Class or Subclass of Interest  Only
Certificates,  an amount used as the principal  basis for the calculation of any
interest payment amount, as more specifically defined in the Series Supplement.

     OBLIGATION  TO PAY: The  originally  executed  obligation to pay or similar
agreement  evidencing  the  obligation of the consumer  under a Sharia  Mortgage
Loan, together with any modification thereto.

     OFFICERS'  CERTIFICATE:  A certificate signed by the Chairman of the Board,
the President or a Vice President or Assistant Vice President,  or a Director or
Managing Director, and by the Treasurer,  the Secretary, or one of the Assistant
Treasurers or Assistant  Secretaries of the Company or the Master  Servicer,  as
the case may be, and delivered to the Trustee, as required by this Agreement.

     OPINION OF COUNSEL:  A written opinion of counsel acceptable to the Trustee
and the  Master  Servicer,  who may be  counsel  for the  Company  or the Master
Servicer, provided that any opinion of counsel (i) referred to in the definition
of  "Disqualified  Organization"  or (ii) relating to the  qualification  of any
REMIC formed under the Series Supplement or compliance with the REMIC Provisions
must, unless otherwise specified, be an opinion of Independent counsel.

     OUTSTANDING  MORTGAGE LOAN: As to any Due Date, a Mortgage Loan  (including
an REO  Property)  which was not the subject of a Principal  Prepayment in Full,
Cash  Liquidation or REO  Disposition  and which was not  purchased,  deleted or
substituted  for prior to such Due Date pursuant to Section 2.02,  2.03, 2.04 or
4.07.

     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.

                                      -18-
<PAGE>

     PASS-THROUGH RATE: As defined in the Series Supplement.

     PAYING AGENT:  The Trustee or any successor  Paying Agent  appointed by the
Trustee.

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

     PERMITTED INVESTMENTS: One or more of the following:

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

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

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

                                      -19-
<PAGE>

     (iv)   commercial paper and demand notes (having original maturities of not
            more than 365 days) of any corporation  incorporated  under the laws
            of the  United  States  or any  state  thereof  which on the date of
            acquisition  has been  rated by each  Rating  Agency in its  highest
            short-term  rating  available;  PROVIDED that such commercial  paper
            shall have a remaining maturity of not more than 30 days;

      (v)   a money  market  fund or a qualified  investment  fund rated by each
            Rating Agency in its highest long-term rating available; and

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

PROVIDED,  HOWEVER,  no  instrument  shall  be  a  Permitted  Investment  if  it
represents,  either (1) the right to receive only interest payments with respect
to the underlying debt instrument or (2) the right to receive both principal and
interest  payments derived from  obligations  underlying such instrument and the
principal and interest payments with respect to such instrument  provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying
obligations.  References  herein to the highest  rating  available  on unsecured
long-term debt shall mean AAA in the case of Standard & Poor's and Fitch and Aaa
in the case of Moody's, and references herein to the highest rating available on
unsecured commercial paper and short-term debt obligations shall mean A-1 in the
case of Standard & Poor's, P-1 in the case of Moody's and either A-1 by Standard
&  Poor's,  P-1 by  Moody's  or F-1 by  Fitch in the  case of  Fitch;  provided,
however,  that any Permitted  Investment  that is a short-term  debt  obligation
rated A-1 by Standard & Poor's must satisfy the following additional conditions:
(i) the total amount of debt from A-1 issuers must be limited to the  investment
of  monthly   principal  and  interest   payments   (assuming  fully  amortizing
collateral);  (ii) the total amount of A-1  investments  must not represent more
than 20% of the  aggregate  outstanding  Certificate  Principal  Balance  of the
Certificates  and  each  investment  must  not  mature  beyond  30  days;  (iii)
investments in A-1 rated  securities are not eligible for the Reserve Fund; (iv)
the terms of the debt must have a predetermined fixed dollar amount of principal
due at maturity that cannot vary; and (v) if the  investments  may be liquidated
prior to their maturity or are being relied on to meet a certain yield, interest
must be tied to a single interest rate index plus a single fixed spread (if any)
and must move  proportionately  with that index. Any Permitted Investment may be
held by or through the Trustee or its Affiliates.

     PERMITTED TRANSFEREE: Any Transferee of a Class R Certificate, other than a
Disqualified Organization or Non-United States Person.

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

                                      -20-
<PAGE>

     PLEDGED AMOUNT: With respect to any Pledged Asset Loan, the amount of money
remitted to Combined  Collateral  LLC, at the direction of or for the benefit of
the related Mortgagor.

     PLEDGED ASSET LOAN:  Any Mortgage Loan  supported by Pledged Assets or such
other collateral,  other than the related Mortgaged  Property,  set forth in the
Series Supplement.

     PLEDGED ASSETS:  With respect to any Mortgage Loan, all money,  securities,
security entitlements,  accounts, general intangibles,  instruments,  documents,
certificates of deposit, commodities contracts and other investment property and
other  property of whatever kind or description  pledged by Combined  Collateral
LLC as  security  in  respect of any  Realized  Losses in  connection  with such
Mortgage Loan up to the Pledged  Amount for such Mortgage  Loan, and any related
collateral,  or  such  other  collateral  as  may  be set  forth  in the  Series
Supplement.

     PLEDGED ASSET  MORTGAGE  SERVICING  AGREEMENT:  The Pledged Asset  Mortgage
Servicing  Agreement,  dated as of February 28, 1996 between MLCC and the Master
Servicer.

     POOLING AND SERVICING  AGREEMENT OR AGREEMENT:  With respect to any Series,
this Standard Terms together with the related Series Supplement.

     POOL STATED PRINCIPAL  BALANCE:  As to any Distribution Date, the aggregate
of the Stated Principal Balances of each Mortgage Loan.

     POOL STRIP RATE: With respect to each Mortgage Loan, a per annum rate equal
to the excess of (a) the Net Mortgage  Rate of such  Mortgage  Loan over (b) the
Discount Net Mortgage Rate (but not less than 0.00%) per annum.

     PREPAYMENT  DISTRIBUTION TRIGGER: With respect to any Distribution Date and
any Class of Subordinate Certificates (other than the Class M-1 Certificates), a
test that shall be satisfied if the fraction  (expressed as a percentage)  equal
to the sum of the Certificate Principal Balances of such Class and each Class of
Subordinate Certificates with a Lower Priority than such Class immediately prior
to such  Distribution  Date divided by the aggregate Stated Principal Balance of
all of the Mortgage Loans (or related REO Properties)  immediately prior to such
Distribution  Date is greater  than or equal to the sum of the  related  Initial
Subordinate Class Percentages of such Classes of Subordinate Certificates.

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

                                      -21-
<PAGE>

     PREPAYMENT PERIOD: As to any Distribution Date and Principal  Prepayment in
Full,  the period  commencing on the 16th day of the month prior to the month in
which that  Distribution  Date occurs and ending on the 15th day of the month in
which such Distribution Date occurs.

     PRIMARY  INSURANCE  POLICY:   Each  primary  policy  of  mortgage  guaranty
insurance or any replacement policy therefor referred to in Section  2.03(b)(iv)
and (v).

     PRINCIPAL  ONLY  CERTIFICATES:  A Class of  Certificates  not  entitled  to
payments of interest,  and more  specifically  designated  as such in the Series
Supplement.

     PRINCIPAL  PREPAYMENT:  Any  payment of  principal  or other  recovery on a
Mortgage Loan,  including a recovery that takes the form of Liquidation Proceeds
or Insurance  Proceeds,  which is received in advance of its  scheduled Due Date
and is not  accompanied  by an  amount  as to  interest  representing  scheduled
interest  on such  payment  due on any  date or dates  in any  month  or  months
subsequent to the month of prepayment.

     PRINCIPAL  PREPAYMENT  IN FULL:  Any  Principal  Prepayment  of the  entire
principal balance of a Mortgage Loan that is made by the Mortgagor.

     PROGRAM  GUIDE:  Collectively,  the Client Guide and the Servicer Guide for
Residential  Funding's  mortgage loan purchase and conduit servicing program and
all supplements  and amendments  thereto  published by Residential  Funding from
time to time.

     PURCHASE  PRICE:  With  respect  to any  Mortgage  Loan  (or REO  Property)
required to be or  otherwise  purchased  on any date  pursuant to Section  2.02,
2.03,  2.04 or  4.07,  an  amount  equal  to the sum of (i)  100% of the  Stated
Principal Balance thereof plus the principal portion of any related unreimbursed
Advances  and (ii) unpaid  accrued  interest at the Adjusted  Mortgage  Rate (or
Modified Net Mortgage Rate plus the rate per annum at which the Servicing Fee is
calculated in the case of a Modified Mortgage Loan) (or at the Net Mortgage Rate
(or Modified Net Mortgage Rate in the case of a Modified  Mortgage  Loan) in the
case of a purchase made by the Master Servicer) on the Stated Principal  Balance
thereof  to the Due Date in the Due  Period  related  to the  Distribution  Date
occurring  in the month  following  the month of  purchase  from the Due Date to
which interest was last paid by the Mortgagor.

     QUALIFIED   SUBSTITUTE  MORTGAGE  LOAN:  A  Mortgage  Loan  substituted  by
Residential  Funding or the Company for a Deleted  Mortgage  Loan which must, on
the  date  of  such  substitution,  as  confirmed  in an  Officers'  Certificate
delivered to the Trustee, with a copy to the Custodian,

      (i)   have  an  outstanding  principal  balance,  after  deduction  of the
            principal  portion  of the  monthly  payment  due in  the  month  of
            substitution  (or in the  case of a  substitution  of more  than one
            Mortgage Loan for a Deleted Mortgage Loan, an aggregate  outstanding
            principal  balance,  after  such  deduction),  not in  excess of the
            Stated Principal Balance of the Deleted Mortgage Loan (the amount of
            any  shortfall  to  be  deposited  by  Residential  Funding  in  the
            Custodial Account in the month of substitution);

                                      -22-
<PAGE>

     (ii)   have a Mortgage  Rate and a Net Mortgage  Rate no lower than and not
            more  than 1% per  annum  higher  than  the  Mortgage  Rate  and Net
            Mortgage Rate, respectively,  of the Deleted Mortgage Loan as of the
            date of substitution;

    (iii)   have a  Loan-to-Value  Ratio at the time of  substitution  no higher
            than that of the Deleted Mortgage Loan at the time of substitution;

     (iv)   have a remaining  term to stated  maturity not greater than (and not
            more than one year less than) that of the Deleted Mortgage Loan;

      (v)   comply with each  representation  and warranty set forth in Sections
            2.03 and 2.04 hereof and Section 4 of the Assignment Agreement; and

     (vi)   have a Pool Strip Rate equal to or greater  than that of the Deleted
            Mortgage Loan.

Notwithstanding  any other provisions  herein, (x) with respect to any Qualified
Substitute  Mortgage Loan  substituted  for a Deleted  Mortgage Loan which was a
Discount Mortgage Loan, such Qualified  Substitute Mortgage Loan shall be deemed
to be a  Discount  Mortgage  Loan and to have a Discount  Fraction  equal to the
Discount  Fraction  of the Deleted  Mortgage  Loan and (y) in the event that the
"Pool  Strip  Rate" of any  Qualified  Substitute  Mortgage  Loan as  calculated
pursuant to the  definition  of "Pool Strip Rate" is greater than the Pool Strip
Rate of the related Deleted Mortgage Loan

      (i)   the Pool Strip Rate of such Qualified Substitute Mortgage Loan shall
            be equal to the Pool Strip Rate of the related Deleted Mortgage Loan
            for purposes of calculating the  Pass-Through  Rate on the Class A-V
            Certificates and

     (ii)   the  excess  of the Pool  Strip  Rate on such  Qualified  Substitute
            Mortgage  Loan as  calculated  pursuant to the  definition  of "Pool
            Strip Rate" over the Pool Strip Rate on the related Deleted Mortgage
            Loan  shall be  payable  to the  Class R  Certificates  pursuant  to
            Section 4.02 hereof.

     RATING AGENCY:  Each of the statistical credit rating agencies specified in
the Preliminary Statement of the Series Supplement. If any agency or a successor
is no longer in  existence,  "Rating  Agency" shall be such  statistical  credit
rating agency, or other comparable Person,  designated by the Company, notice of
which designation shall be given to the Trustee and the Master Servicer.

     REALIZED LOSS: With respect to each Mortgage Loan (or REO Property):

     (a) as to which a Cash  Liquidation  or REO  Disposition  has occurred,  an
amount  (not less than zero)  equal to (i) the Stated  Principal  Balance of the
Mortgage  Loan  (or REO  Property)  as of the  date of Cash  Liquidation  or REO
Disposition,  plus (ii) interest (and REO Imputed  Interest,  if any) at the Net
Mortgage  Rate from the Due Date as to which  interest was last paid or advanced
to  Certificateholders  up to the  Due  Date in the Due  Period  related  to the
Distribution  Date on which such  Realized  Loss will be  allocated  pursuant to
Section  4.05 on the  Stated  Principal  Balance of such  Mortgage  Loan (or REO
Property)  outstanding during each Due Period that such interest was not paid or
advanced,  minus (iii) the proceeds,  if any, received

                                      -23-
<PAGE>

during the month in which such Cash Liquidation (or REO  Disposition)  occurred,
to the extent  applied as recoveries of interest at the Net Mortgage Rate and to
principal of the Mortgage Loan, net of the portion  thereof  reimbursable to the
Master Servicer or any Subservicer with respect to related  Advances,  Servicing
Advances or other  expenses as to which the Master  Servicer or  Subservicer  is
entitled  to  reimbursement  thereunder  but  which  have  not  been  previously
reimbursed,

     (b) which is the subject of a Servicing Modification, (i) (1) the amount by
which the interest portion of a Monthly Payment or the principal balance of such
Mortgage  Loan was reduced or (2) the sum of any other  amounts  owing under the
Mortgage Loan that were forgiven and that constitute Servicing Advances that are
reimbursable to the Master  Servicer or a Subservicer,  and (ii) any such amount
with  respect to a Monthly  Payment that was or would have been due in the month
immediately  following the month in which a Principal Prepayment or the Purchase
Price of such Mortgage Loan is received or is deemed to have been received,

     (c) which has become the subject of a Deficient  Valuation,  the difference
between the principal balance of the Mortgage Loan outstanding immediately prior
to such  Deficient  Valuation and the principal  balance of the Mortgage Loan as
reduced by the Deficient Valuation, or

     (d) which has become the object of a Debt Service Reduction,  the amount of
such Debt Service Reduction.

Notwithstanding  the above,  neither a Deficient  Valuation  nor a Debt  Service
Reduction  shall be  deemed a  Realized  Loss  hereunder  so long as the  Master
Servicer  has  notified  the  Trustee in writing  that the  Master  Servicer  is
diligently  pursuing  any  remedies  that  may  exist  in  connection  with  the
representations  and  warranties  made  regarding the related  Mortgage Loan and
either (A) the related  Mortgage  Loan is not in default with regard to payments
due  thereunder or (B)  delinquent  payments of principal and interest under the
related  Mortgage  Loan  and  any  premiums  on any  applicable  primary  hazard
insurance  policy and any related  escrow  payments in respect of such  Mortgage
Loan  are  being  advanced  on a  current  basis  by the  Master  Servicer  or a
Subservicer, in either case without giving effect to any Debt Service Reduction.

To the extent the Master Servicer receives Subsequent Recoveries with respect to
any Mortgage Loan, the amount of the Realized Loss with respect to that Mortgage
Loan will be reduced to the extent  such  recoveries  are  applied to reduce the
Certificate  Principal  Balance of any Class of Certificates on any Distribution
Date.

     RECORD DATE: With respect to each Distribution  Date, the close of business
on the last  Business  Day of the month  next  preceding  the month in which the
related Distribution Date occurs.

     REGULAR  CERTIFICATE:  Any  of  the  Certificates  other  than  a  Class  R
Certificate.

                                      -24-
<PAGE>

     REGULATION AB: Subpart 229.1100 - Asset Backed Securities  (Regulation AB),
17 C.F.R. ss.ss.229.1100-229.1123, as such may be amended from time to time, and
subject to such  clarification  and  interpretation as have been provided by the
Commission in the adopting  release  (Asset-Backed  Securities,  Securities  Act
Release No.  33-8518,  70 Fed. Reg.  1,506,  1,531  (January 7, 2005)) or by the
staff of the  Commission,  or as may be provided by the  Commission or its staff
from time to time.

     REIMBURSEMENT AMOUNTS: As defined in Section 3.22.

     RELIEF ACT: The Servicemembers  Civil Relief Act or similar  legislation or
regulations as in effect from time to time.

     RELIEF ACT SHORTFALLS:  Shortfalls in interest  payable by a Mortgagor that
are not collectible from the Mortgagor pursuant to the Relief Act.

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

     REMIC  ADMINISTRATOR:  Residential  Funding  Company,  LLC. If  Residential
Funding Company, LLC is found by a court of competent  jurisdiction to no longer
be able to fulfill its obligations as REMIC  Administrator  under this Agreement
the  Master  Servicer  or  Trustee  acting as Master  Servicer  shall  appoint a
successor REMIC Administrator,  subject to assumption of the REMIC Administrator
obligations under this Agreement.

     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 temporary
and final regulations (or, to the extent not inconsistent with such temporary or
final  regulations,  proposed  regulations) and published  rulings,  notices and
announcements  promulgated  thereunder,  as the  foregoing may be in effect from
time to time.

     REO  ACQUISITION:  The  acquisition by the Master Servicer on behalf of the
Trustee for the benefit of the  Certificateholders  of any REO Property pursuant
to Section 3.14.

     REO  DISPOSITION:  As to any REO Property,  a  determination  by the Master
Servicer that it has received all Insurance Proceeds,  Liquidation Proceeds, REO
Proceeds and other payments and recoveries  (including proceeds of a final sale)
which the Master  Servicer  expects to be finally  recoverable  from the sale or
other disposition of the REO Property.

     REO IMPUTED  INTEREST:  As to any REO Property,  for any period,  an amount
equivalent to interest (at the Net Mortgage Rate that would have been applicable
to the related  Mortgage Loan had it been  outstanding) on the unpaid  principal
balance of the  Mortgage  Loan as of the date of  acquisition  thereof  for such
period.

     REO  PROCEEDS:  Proceeds,  net of expenses,  received in respect of any REO
Property (including, without limitation, proceeds from the rental of the related
Mortgaged  Property  or,  with  respect  to  a  Cooperative  Loan,  the  related
Cooperative  Apartment)  which  proceeds are  required to be deposited  into the
Custodial Account only upon the related REO Disposition.

                                      -25-
<PAGE>

     REO PROPERTY:  A Mortgaged Property acquired by the Master Servicer through
foreclosure  or deed  in lieu of  foreclosure  in  connection  with a  defaulted
Mortgage Loan.

     REPORTABLE  MODIFIED  MORTGAGE  LOAN:  Any Mortgage  Loan that (i) has been
subject to an interest rate reduction, (ii) has been subject to a term extension
or (iii) has had amounts owing on such Mortgage Loan  capitalized by adding such
amount to the Stated Principal Balance of such Mortgage Loan; PROVIDED, HOWEVER,
that a  Mortgage  Loan  modified  in  accordance  with  clause  (i)  above for a
temporary  period  shall  not be a  Reportable  Modified  Mortgage  Loan if such
Mortgage Loan has not been  delinquent in payments of principal and interest for
six months since the date of such  modification  if that interest rate reduction
is not made permanent thereafter.

     REQUEST FOR RELEASE: A request for release, the forms of which are attached
as  Exhibit F hereto,  or an  electronic  request  in a form  acceptable  to the
Custodian.

     REQUIRED INSURANCE POLICY: With respect to any Mortgage Loan, any insurance
policy  which  is  required  to be  maintained  from  time  to time  under  this
Agreement, the Program Guide or the related Subservicing Agreement in respect of
such Mortgage Loan.

     REQUIRED  SURETY  PAYMENT:  With respect to any Additional  Collateral Loan
that becomes a Liquidated Mortgage Loan, the lesser of (i) the principal portion
of the Realized Loss with respect to such Mortgage Loan and (ii) the excess,  if
any, of (a) the amount of Additional  Collateral  required at  origination  with
respect  to  such  Mortgage  Loan  over  (b) the net  proceeds  realized  by the
Subservicer from the related Additional Collateral.

     RESIDENTIAL FUNDING:  Residential Funding Company,  LLC, a Delaware limited
liability  company,  in its  capacity  as  seller of the  Mortgage  Loans to the
Company and not in its capacity as Master Servicer, and any successor thereto.

     RESPONSIBLE OFFICER:  When used with respect to the Trustee, any officer of
the  Corporate  Trust  Department  of the  Trustee,  including  any Senior  Vice
President,  any Vice  President,  any Assistant  Vice  President,  any Assistant
Secretary, any Trust Officer or Assistant Trust Officer, or any other officer of
the Trustee customarily  performing  functions similar to those performed by any
of the above designated  officers to whom, with respect to a particular  matter,
such  matter  is  referred,  in each  case with  direct  responsibility  for the
administration of the Agreements.

     RETAIL  CERTIFICATES:  A Senior  Certificate,  if any,  offered  in smaller
minimum denominations than other Senior Certificates,  and designated as such in
the Series Supplement.

     SCHEDULE OF DISCOUNT  FRACTIONS:  The schedule  setting  forth the Discount
Fractions with respect to the Discount Mortgage Loans, attached as an exhibit to
the Series Supplement.

     SECURITIZATION  TRANSACTION:  Any  transaction  involving  a sale or  other
transfer  of  mortgage  loans  directly or  indirectly  to an issuing  entity in
connection with an issuance of publicly  offered or privately  placed,  rated or
unrated mortgage-backed securities.

     SECURITY  AGREEMENT:  With respect to a  Cooperative  Loan,  the  agreement
creating  a  security  interest  in  favor  of the  originator  in  the  related
Cooperative Stock.

                                      -26-
<PAGE>

     SELLER: As to any Mortgage Loan, a Person, including any Subservicer,  that
executed a Seller's Agreement applicable to such Mortgage Loan.

     SELLER'S  AGREEMENT:  An agreement for the origination and sale of Mortgage
Loans generally in the form of the Seller  Contract  referred to or contained in
the  Program  Guide,  or in such other form as has been  approved  by the Master
Servicer and the Company,  each  containing  representations  and  warranties in
respect of one or more Mortgage Loans  consistent in all material  respects with
those set forth in the Program Guide.

     SENIOR   ACCELERATED   DISTRIBUTION   PERCENTAGE:   With   respect  to  any
Distribution  Date occurring on or prior to the 60th Distribution Date and, with
respect to any Mortgage  Pool  comprised  of two or more Loan  Groups,  any Loan
Group,  100%. With respect to any Distribution Date thereafter and any such Loan
Group, if applicable, as follows:

      (i)   for any Distribution Date after the 60th Distribution Date but on or
            prior to the 72nd  Distribution  Date, the related Senior Percentage
            for  such  Distribution  Date  plus 70% of the  related  Subordinate
            Percentage for such Distribution Date;

     (ii)   for any Distribution Date after the 72nd Distribution Date but on or
            prior to the 84th  Distribution  Date, the related Senior Percentage
            for  such  Distribution  Date  plus 60% of the  related  Subordinate
            Percentage for such Distribution Date;

    (iii)   for any Distribution Date after the 84th Distribution Date but on or
            prior to the 96th  Distribution  Date, the related Senior Percentage
            for  such  Distribution  Date  plus 40% of the  related  Subordinate
            Percentage for such Distribution Date;

     (iv)   for any Distribution Date after the 96th Distribution Date but on or
            prior to the 108th  Distribution Date, the related Senior Percentage
            for  such  Distribution  Date  plus 20% of the  related  Subordinate
            Percentage for such Distribution Date; and

      (v)   for any Distribution Date thereafter, the Senior Percentage for such
            Distribution Date;

PROVIDED, HOWEVER,

      (i)   that any scheduled reduction to the Senior Accelerated  Distribution
            Percentage  described  above shall not occur as of any  Distribution
            Date unless either

            (a)(1)(X) the  outstanding  principal  balance of the Mortgage Loans
      delinquent  60  days  or  more  (including  Mortgage  Loans  which  are in
      foreclosure, have been foreclosed or otherwise liquidated, or with respect
      to which the  Mortgagor is in bankruptcy  and any REO  Property)  averaged
      over the last six months,  as a percentage  of the  aggregate  outstanding
      Certificate  Principal  Balance of the Subordinate  Certificates,  is less
      than  50% or (Y) the  outstanding  principal  balance  of  Mortgage  Loans
      delinquent  60  days  or  more  (including  Mortgage  Loans  which  are in
      foreclosure, have been foreclosed or otherwise liquidated, or with respect
      to which the  Mortgagor is in bankruptcy  and any REO  Property)  averaged
      over the last six months,  as a percentage  of the  aggregate  outstanding
      principal balance of all Mortgage Loans averaged over the last six months,

                                      -27-
<PAGE>

      does not exceed 2% and (2) Realized  Losses on the Mortgage  Loans to date
      for such Distribution Date if occurring during the sixth, seventh, eighth,
      ninth or tenth year (or any year  thereafter)  after the Closing  Date are
      less than  30%,  35%,  40%,  45% or 50%,  respectively,  of the sum of the
      Initial Certificate Principal Balances of the Subordinate Certificates or

            (b)(1)  the   outstanding   principal   balance  of  Mortgage  Loans
      delinquent  60  days  or  more  (including  Mortgage  Loans  which  are in
      foreclosure, have been foreclosed or otherwise liquidated, or with respect
      to which the  Mortgagor is in bankruptcy  and any REO  Property)  averaged
      over the last six months,  as a percentage  of the  aggregate  outstanding
      principal balance of all Mortgage Loans averaged over the last six months,
      does not exceed 4% and (2) Realized  Losses on the Mortgage  Loans to date
      for such  Distribution  Date,  if  occurring  during the  sixth,  seventh,
      eighth,  ninth or tenth year (or any year  thereafter)  after the  Closing
      Date are less than 10%, 15%, 20%, 25% or 30%, respectively,  of the sum of
      the   Initial   Certificate   Principal   Balances   of  the   Subordinate
      Certificates, and

     (ii)   that for any  Distribution  Date on which the Senior  Percentage  is
            greater  than the Senior  Percentage  as of the  Closing  Date,  the
            Senior  Accelerated  Distribution  Percentage for such  Distribution
            Date shall be 100%,  or, if the Mortgage Pool is comprised of two or
            more Loan Groups,  for any  Distribution  Date on which the weighted
            average of the Senior  Percentages for each Loan Group,  weighted on
            the basis of the Stated Principal  Balances of the Mortgage Loans in
            the related Loan Group,  exceeds the weighted average of the initial
            Senior  Percentages  (calculated on such basis) for each Loan Group,
            each of the Senior  Accelerated  Distribution  Percentages  for such
            Distribution Date will equal 100%.

Notwithstanding the foregoing,  upon the reduction of the Certificate  Principal
Balances  of  the  related  Senior   Certificates  (other  than  the  Class  A-P
Certificates,  if any) to zero,  the  related  Senior  Accelerated  Distribution
Percentage shall thereafter be 0%.

     SENIOR CERTIFICATE: As defined in the Series Supplement.

     SENIOR PERCENTAGE: As defined in the Series Supplement.

     SENIOR SUPPORT  CERTIFICATE:  A Senior Certificate that provides additional
credit  enhancement  to  certain  other  classes  of  Senior   Certificates  and
designated as such in the Preliminary Statement of the Series Supplement.

     SERIES: All of the Certificates  issued pursuant to a Pooling and Servicing
Agreement and bearing the same series designation.

     SERIES  SUPPLEMENT:  The  agreement  into  which  this  Standard  Terms  is
incorporated and pursuant to which,  together with this Standard Terms, a Series
of Certificates is issued.

     SERVICING ACCOUNTS: The account or accounts created and maintained pursuant
to Section 3.08.

                                      -28-
<PAGE>

     SERVICING ADVANCES: All customary, reasonable and necessary "out of pocket"
costs and expenses  incurred in connection with a default,  delinquency or other
unanticipated  event by the Master  Servicer or a Subservicer in the performance
of its servicing obligations, including, but not limited to, the cost of (i) the
preservation,  restoration  and  protection  of a  Mortgaged  Property  or, with
respect to a  Cooperative  Loan,  the related  Cooperative  Apartment,  (ii) any
enforcement  or judicial  proceedings,  including  foreclosures,  including  any
expenses  incurred  in  relation  to any such  proceedings  that result from the
Mortgage Loan being  registered  on the MERS System,  (iii) the  management  and
liquidation of any REO Property,  (iv) any mitigation procedures  implemented in
accordance  with Section 3.07, and (v)  compliance  with the  obligations  under
Sections 3.01, 3.08, 3.12(a) and 3.14, including,  if the Master Servicer or any
Affiliate  of the Master  Servicer  provides  services  such as  appraisals  and
brokerage services that are customarily provided by Persons other than servicers
of mortgage loans, reasonable compensation for such services.

     SERVICING ADVANCE REIMBURSEMENT AMOUNTS: As defined in Section 3.22.

     SERVICING CRITERIA:  The "servicing  criteria" set forth in Item 1122(d) of
Regulation AB, as such may be amended from time to time.

     SERVICING FEE: With respect to any Mortgage Loan and Distribution Date, the
fee  payable  monthly to the  Master  Servicer  in  respect of master  servicing
compensation  that accrues at an annual rate  designated  on the  Mortgage  Loan
Schedule as the "MSTR SERV FEE" for such Mortgage  Loan, as may be adjusted with
respect to successor Master Servicers as PROVIDED in Section 7.02.

     SERVICING  MODIFICATION:  Any  reduction  of the  interest  rate  on or the
outstanding  principal  balance of a Mortgage  Loan,  any extension of the final
maturity date of a Mortgage Loan, and any increase to the outstanding  principal
balance of a  Mortgage  Loan by adding to the Stated  Principal  Balance  unpaid
principal and interest and other amounts owing under the Mortgage  Loan, in each
case pursuant to a  modification  of a Mortgage Loan that is in default,  or for
which,  in  the  judgment  of  the  Master   Servicer,   default  is  reasonably
foreseeable, in accordance with Section 3.07(a).

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

     SHARIA  MORTGAGE  LOAN:  A  declining  balance  co-ownership   transaction,
structured so as to comply with Islamic religious law.

     SHARIA MORTGAGE LOAN CO-OWNERSHIP AGREEMENT: The agreement that defines the
relationship  between the consumer  and  co-owner  and the  parties'  respective
rights under a Sharia  Mortgage Loan,  including  their  respective  rights with
respect to the indicia of ownership of the related Mortgaged Property.

                                      -29-
<PAGE>

     SHARIA MORTGAGE LOAN SECURITY INSTRUMENT: The mortgage, security instrument
or other comparable  instrument creating a first lien on an estate in fee simple
or leasehold interest in real property securing an Obligation to Pay.

     SPECIAL  HAZARD LOSS:  Any  Realized  Loss not in excess of the cost of the
lesser of repair or replacement  of a Mortgaged  Property (or, with respect to a
Cooperative Loan, the related Cooperative  Apartment) suffered by such Mortgaged
Property  (or  Cooperative  Apartment)  on  account  of  direct  physical  loss,
exclusive  of (i) any  loss of a type  covered  by a  hazard  policy  or a flood
insurance policy required to be maintained in respect of such Mortgaged Property
pursuant  to Section  3.12(a),  except to the extent of the portion of such loss
not covered as a result of any coinsurance  provision and (ii) any Extraordinary
Loss.

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

     STATED PRINCIPAL BALANCE:  With respect to any Mortgage Loan or related REO
Property,  at any given  time,  (i) the sum of (a) the  Cut-off  Date  Principal
Balance of the Mortgage  Loan plus (b) any amount by which the Stated  Principal
Balance of the Mortgage Loan is increased pursuant to a Servicing  Modification,
minus (ii) the sum of (a) the principal portion of the Monthly Payments due with
respect to such  Mortgage  Loan or REO  Property  during each Due Period  ending
prior to the most recent  Distribution  Date which were received or with respect
to which an Advance was made, and (b) all Principal  Prepayments with respect to
such  Mortgage Loan or REO Property,  and all  Insurance  Proceeds,  Liquidation
Proceeds  and REO  Proceeds,  to the extent  applied by the Master  Servicer  as
recoveries  of  principal in  accordance  with Section 3.14 with respect to such
Mortgage Loan or REO Property,  in each case which were distributed  pursuant to
Section  4.02 on any  previous  Distribution  Date,  and (c) any  Realized  Loss
allocated  to   Certificateholders   with  respect   thereto  for  any  previous
Distribution Date.

     SUCCESSOR MASTER SERVICER: As defined in Section 3.22.

     SUBCLASS: With respect to the Class A-V Certificates,  any Subclass thereof
issued  pursuant  to Section  5.01(c).  Any such  Subclass  will  represent  the
Uncertificated  Class A-V REMIC Regular  Interest or Interests  specified by the
initial Holder of the Class A-V Certificates pursuant to Section 5.01(c).

     SUBORDINATE  CERTIFICATE:  Any one of the Class M  Certificates  or Class B
Certificates,  executed  by the  Trustee and  authenticated  by the  Certificate
Registrar  substantially  in the form annexed hereto as Exhibit B and Exhibit C,
respectively.

     SUBORDINATE CLASS PERCENTAGE: With respect to any Distribution Date and any
Class of Subordinate Certificates,  a fraction,  expressed as a percentage,  the
numerator of which is the aggregate  Certificate Principal Balance of such Class
of Subordinate  Certificates  immediately prior to such date and the denominator
of which is the aggregate Stated Principal  Balance of all of the Mortgage Loans
(or related REO Properties)  (other than the related  Discount  Fraction of each
Discount Mortgage Loan) immediately prior to such Distribution Date.

                                      -30-
<PAGE>

     SUBORDINATE  PERCENTAGE:  As of any Distribution  Date and, with respect to
any Mortgage  Pool  comprised of two or more Loan Groups,  any Loan Group,  100%
minus the related Senior Percentage as of such Distribution Date.

     SUBSEQUENT RECOVERIES: As of any Distribution Date, amounts received by the
Master Servicer (net of any related expenses permitted to be reimbursed pursuant
to  Section  3.10) or  surplus  amounts  held by the  Master  Servicer  to cover
estimated expenses (including,  but not limited to, recoveries in respect of the
representations  and  warranties  made by the  related  Seller  pursuant  to the
applicable  Seller's  Agreement and assigned to the Trustee  pursuant to Section
2.04)  specifically  related to a Mortgage  Loan that was the  subject of a Cash
Liquidation or an REO Disposition  prior to the related  Prepayment  Period that
resulted in a Realized Loss.

     SUBSERVICED MORTGAGE LOAN: Any Mortgage Loan that, at the time of reference
thereto, is subject to a Subservicing Agreement.

     SUBSERVICER:  Any Person with whom the Master  Servicer  has entered into a
Subservicing Agreement and who generally satisfied the requirements set forth in
the Program Guide in respect of the  qualification  of a  Subservicer  as of the
date of its approval as a Subservicer by the Master Servicer.

     SUBSERVICER ADVANCE:  Any delinquent  installment of principal and interest
on a Mortgage  Loan which is  advanced by the  related  Subservicer  (net of its
Subservicing Fee) pursuant to the Subservicing Agreement.

     SUBSERVICING ACCOUNT: An account established by a Subservicer in accordance
with Section 3.08.

     SUBSERVICING  AGREEMENT:  The written  contract between the Master Servicer
and any Subservicer relating to servicing and administration of certain Mortgage
Loans as  provided  in  Section  3.02,  generally  in the  form of the  servicer
contract  referred to or contained in the Program Guide or in such other form as
has been  approved  by the Master  Servicer  and the  Company.  With  respect to
Additional  Collateral  Loans  subserviced by MLCC, the  Subservicing  Agreement
shall also include the Addendum and  Assignment  Agreement and the Pledged Asset
Mortgage Servicing Agreement. With respect to any Pledged Asset Loan subserviced
by GMAC  Mortgage,  LLC,  the  Addendum and  Assignment  Agreement,  dated as of
November 24, 1998,  between the Master Servicer and GMAC Mortgage,  LLC, as such
agreement may be amended from time to time.

     SUBSERVICING  FEE: As to any Mortgage Loan, the fee payable  monthly to the
related  Subservicer (or, in the case of a Nonsubserviced  Mortgage Loan, to the
Master Servicer) in respect of subservicing and other  compensation that accrues
at an annual rate equal to the excess of the Mortgage  Rate borne by the related
Mortgage  Note over the rate per annum  designated on the Mortgage Loan Schedule
as the "CURR NET" for such Mortgage Loan.

     SUCCESSOR MASTER SERVICER: As defined in Section 3.22.

     SURETY:  Ambac, or its successors in interest,  or such other surety as may
be identified in the Series Supplement.

                                      -31-
<PAGE>

     SURETY BOND: The Limited Purpose Surety Bond (Policy No.  AB0039BE),  dated
February 28, 1996 in respect to Mortgage Loans originated by MLCC, or the Surety
Bond (Policy No.  AB0240BE),  dated March 17, 1999 in respect to Mortgage  Loans
originated by Novus Financial Corporation,  in each case issued by Ambac for the
benefit of certain  beneficiaries,  including the Trustee for the benefit of the
Holders of the Certificates, but only to the extent that such Surety Bond covers
any Additional  Collateral Loans, or such other Surety Bond as may be identified
in the Series Supplement.

     TAX RETURNS: The federal income tax return on Internal Revenue Service Form
1066, U.S. Real Estate Mortgage Investment Conduit Income Tax Return,  including
Schedule Q  thereto,  Quarterly  Notice to  Residual  Interest  Holders of REMIC
Taxable Income or Net Loss  Allocation,  or any successor  forms, to be filed on
behalf  of any REMIC  formed  under the  Series  Supplement  and 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.

     TRANSACTION PARTY: As defined in Section 12.02(a).

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

     TRANSFEREE:  Any Person who is acquiring by Transfer any Ownership Interest
in a Certificate.

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

     TRUST FUND: The segregated pool of assets consisting of:

      (i)   the Mortgage  Loans and the related  Mortgage  Files and  collateral
            securing such Mortgage Loans,

     (ii)   all payments on and collections in respect of the Mortgage Loans due
            after the Cut-off Date (other than Monthly Payments due in the month
            of the Cut-Off Date) as shall be on deposit in the Custodial Account
            or in the  Certificate  Account and  identified  as belonging to the
            Trust  Fund,   including  the  proceeds  from  the   liquidation  of
            Additional  Collateral for any Additional Collateral Loan or Pledged
            Assets for any Pledged  Asset  Loan,  but not  including  amounts on
            deposit in the Initial Monthly Payment Fund,

    (iii)   property that secured a Mortgage Loan and that has been acquired for
            the benefit of the Certificateholders by foreclosure or deed in lieu
            of foreclosure,

     (iv)   the hazard insurance  policies and Primary  Insurance  Policies,  if
            any, the Pledged Assets with respect to each Pledged Asset Loan, and
            the interest in the Surety Bond  transferred to the Trustee pursuant
            to Section 2.01,

                                      -32-
<PAGE>

      (v)   the Initial Monthly Payment Fund, and

     (vi)   all proceeds of clauses (i) through (v) above.

     TRUSTEE INFORMATION: As specified in Section 12.05(a)(i)(A).

     UNDERWRITER: As defined in the Series Supplement.

     UNINSURED CAUSE: Any cause of damage to property subject to a Mortgage such
that the complete  restoration of such property is not fully reimbursable by the
hazard insurance policies.

     UNITED  STATES  PERSON:  A citizen  or  resident  of the United  States,  a
corporation,  partnership  or other entity created or organized in, or under the
laws  of,  the  United  States,  provided  that,  for  purposes  solely  of  the
restrictions  on the transfer of residual  interests,  no  partnership  or other
entity  treated as a partnership  for United States  federal income tax purposes
shall be treated  as a United  States  Person  unless  all  persons  that own an
interest in such partnership either directly or through any entity that is not a
corporation  for United States  federal  income tax purposes are required by the
applicable  operating agreement to be United States Persons,  any state thereof,
or the District of Columbia (except in the case of a partnership,  to the extent
provided in Treasury  regulations) or any political  subdivision  thereof, or an
estate that is described in Section  7701(a)(30)(D) of the Code, or a trust that
is described in Section 7701(a)(30)(E) of the Code.

     U.S.A.  PATRIOT  ACT:  Uniting  and  Strengthening   America  by  Providing
Appropriate Tools to Intercept and Obstruct Terrorism Act of 2001, as amended.

     VOTING RIGHTS:  The portion of the voting rights of all of the Certificates
which is allocated  to any  Certificate,  and more  specifically  designated  in
Article XI of the Series Supplement.

     Section 1.02   Use of Words and Phrases.

     "Herein," "hereby,"  "hereunder," 'hereof,"  "hereinbefore,"  "hereinafter"
and other  equivalent  words refer to the Pooling and  Servicing  Agreement as a
whole. All references herein to Articles, Sections or Subsections shall mean the
corresponding  Articles,  Sections and  Subsections in the Pooling and Servicing
Agreement.  The  definitions  set forth herein include both the singular and the
plural.

     References  in the Pooling and  Servicing  Agreement to  "interest"  on and
"principal"  of the  Mortgage  Loans  shall  mean,  with  respect  to the Sharia
Mortgage Loans,  amounts in respect profit  payments and  acquisition  payments,
respectively.

                                      -33-
<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

     Section 2.01   Conveyance of Mortgage Loans.

     (a) The Company,  concurrently with the execution and delivery hereof, does
hereby assign to the Trustee for the benefit of the  Certificateholders  without
recourse all the right, title and interest of the Company in and to the Mortgage
Loans,  including all interest and principal  received on or with respect to the
Mortgage  Loans after the Cut-off  Date (other than  payments of  principal  and
interest  due on the  Mortgage  Loans in the  month  of the  Cut-off  Date).  In
connection with such transfer and assignment, the Company does hereby deliver to
the Trustee the  Certificate  Policy (as defined in the Series  Supplement),  if
any, for the benefit of the Holders of such insured  Certificates.  The Company,
the Master  Servicer  and the  Trustee  agree that it is not  intended  that any
mortgage  loan be included in the Trust that is (i) a  "High-Cost  Home Loan" as
defined in the New Jersey Home Ownership Act effective November 27, 2003, (ii) a
"High-Cost  Home Loan" as defined in the New  Mexico  Home Loan  Protection  Act
effective  January 1, 2004, (iii) a "High Cost Home Mortgage Loan" as defined in
the  Massachusetts  Predatory Home  Practices Act effective  November 7, 2004 or
(iv) a "High-Cost  Home Loan" as defined in the Indiana  House  Enrolled Act No.
1229, effective as of January 1, 2005.

     (b) In  connection  with such  assignment,  except as set forth in  Section
2.01(c) and subject to Section 2.01(d) below, the Company does hereby:

          (I) with  respect to each  Mortgage  Loan so  assigned  (other  than a
     Cooperative  Loan or a Sharia  Mortgage  Loan)  (1) in the case of all such
     Mortgage  Loans,  deliver to and deposit  with the Master  Servicer  (or an
     Affiliate of the Master  Servicer)  each of the  documents  or  instruments
     described  in clause  (ii) below (and the  Master  Servicer  shall hold (or
     cause such  Affiliate to hold) such  documents or  instruments in trust for
     the use and benefit of all present and future Certificateholders), (2) with
     respect to each MOM Loan, deliver to, and deposit with, the Trustee,  or to
     and with one or more  Custodians  on  behalf  of the  Trustee,  as the duly
     appointed agent or agents of the Trustee for such purpose, the documents or
     instruments  described  in clauses (i) and (v) below,  (3) with  respect to
     each  Mortgage Loan that is not a MOM Loan but is registered on the MERS(R)
     System,  deliver to, and deposit with,  the Trustee,  or to and with one or
     more Custodian on behalf of the Trustees,  as the duly  appointed  agent or
     agents of the  Trustee  for such  purpose,  the  documents  or  instruments
     described  in clauses  (i),  (iv) and (v) below,  (4) with  respect to each
     Mortgage  Loan that is not a MOM Loan and is not  registered on the MERS(R)
     System,  deliver to, and deposit with,  the Trustee,  or to and with one or
     more  Custodians on behalf of the Trustee,  as the duly appointed  agent or
     agents of the  Trustee  for such  purpose,  the  documents  or  instruments
     described in clauses (i), (iii),  (iv) and (v) below,  and (5) with respect
     to each Cooperative  Loan and Sharia Mortgage Loan,  deliver to and deposit
     with the  Trustee,  or to the  Custodian  on  behalf  of the  Trustee,  the
     documents and instruments described in clause (II) and clause (III) below:

                                      -34-
<PAGE>

          (i) The original Mortgage Note, endorsed without recourse to the order
     of the  Trustee  and showing an  unbroken  chain of  endorsements  from the
     originator  thereof  to the Person  endorsing  it to the  Trustee,  or with
     respect to any Destroyed  Mortgage  Note,  an original lost note  affidavit
     from the related  Seller or Residential  Funding  stating that the original
     Mortgage Note was lost, misplaced or destroyed, together with a copy of the
     related Mortgage Note.

          (ii) The  original  Mortgage,  noting the  presence  of the MIN of the
     Mortgage Loan and language  indicating that the Mortgage Loan is a MOM Loan
     if the Mortgage Loan is a MOM Loan,  with  evidence of recording  indicated
     thereon or a copy of the  Mortgage  with  evidence of  recording  indicated
     thereon.

          (iii) The  original  Assignment  of the  Mortgage to the Trustee  with
     evidence of recording  indicated  thereon or a copy of such assignment with
     evidence of recording indicated thereon.

          (iv) The original  recorded  assignment or assignments of the Mortgage
     showing  an  unbroken  chain of title  from the  originator  thereof to the
     Person  assigning it to the Trustee (or to MERS,  if the  Mortgage  Loan is
     registered  on the  MERS(R)  System and noting the  presence of a MIN) with
     evidence of  recordation  noted thereon or attached  thereto,  or a copy of
     such  assignment or  assignments of the Mortgage with evidence of recording
     indicated thereon.

          (v)  The  original  of  each  modification,  assumption  agreement  or
     preferred loan agreement,  if any, relating to such Mortgage Loan or a copy
     of each modification, assumption agreement or preferred loan agreement.

(II) with respect to each Cooperative Loan so assigned:

          (vi) The original  Mortgage  Note,  endorsed  without  recourse to the
     order of the Trustee and showing an unbroken chain of endorsements from the
     originator  thereof  to the Person  endorsing  it to the  Trustee,  or with
     respect to any Destroyed  Mortgage  Note,  an original lost note  affidavit
     from the related  Seller or Residential  Funding  stating that the original
     Mortgage Note was lost, misplaced or destroyed, together with a copy of the
     related Mortgage Note.

          (vii) A counterpart  of the  Cooperative  Lease and the  Assignment of
     Proprietary   Lease  to  the  originator  of  the  Cooperative   Loan  with
     intervening  assignments  showing  an  unbroken  chain of title  from  such
     originator  to  the  Trustee  or a  copy  of  such  Cooperative  Lease  and
     Assignment of Proprietary Lease and copies of such intervening assignments.

          (viii) The related  Cooperative  Stock  Certificate,  representing the
     related  Cooperative  Stock pledged with respect to such Cooperative  Loan,
     together with an undated stock power (or other similar instrument) executed
     in blank or copies thereof.

          (ix) The  original  recognition  agreement by the  Cooperative  of the
     interests of the mortgagee with respect to the related  Cooperative Loan or
     a copy thereof.

                                      -35-
<PAGE>

          (x) The Security Agreement or a copy thereof.

          (xi)  Copies  of the  original  UCC-1  financing  statement,  and  any
     continuation  statements,  filed by the originator of such Cooperative Loan
     as secured party, each with evidence of recording  thereof,  evidencing the
     interest of the originator under the Security  Agreement and the Assignment
     of Proprietary Lease.

          (xii) Copies of the filed UCC-3  assignments of the security  interest
     referenced in clause (vi) above showing an unbroken chain of title from the
     originator  to the  Trustee,  each  with  evidence  of  recording  thereof,
     evidencing the interest of the originator under the Security  Agreement and
     the Assignment of Proprietary Lease.

          (xiii) An executed assignment of the interest of the originator in the
     Security  Agreement,  Assignment of Proprietary  Lease and the  recognition
     agreement  referenced  in clause (iv) above,  showing an unbroken  chain of
     title from the originator to the Trustee or a copy thereof.

          (xiv) The  original  of each  modification,  assumption  agreement  or
     preferred loan agreement,  if any,  relating to such  Cooperative Loan or a
     copy  of  each  modification,   assumption   agreement  or  preferred  loan
     agreement.

          (xv) A duly completed  UCC-1  financing  statement  showing the Master
     Servicer  as  debtor,  the  Company  as  secured  party and the  Trustee as
     assignee and a duly completed UCC-1 financing statement showing the Company
     as debtor and the Trustee as secured party,  each in a form  sufficient for
     filing, evidencing the interest of such debtors in the Cooperative Loans or
     a copy thereof.

and (III) with respect to each Sharia Mortgage Loan so assigned:

          (xvi) The original  Obligation to Pay,  endorsed  without  recourse in
     blank or to the order of the  Trustee  and  showing  an  unbroken  chain of
     endorsements from the originator  thereof to the Person endorsing it to the
     Trustee,  or with respect to any  Destroyed  Obligation to Pay, an original
     affidavit from the related Seller or Residential  Funding  stating that the
     original Obligation to Pay was lost, misplaced or destroyed,  together with
     a copy of the related Obligation to Pay.

          (xvii) The original  Sharia  Mortgage Loan Security  Instrument,  with
     evidence of recording  indicated  thereon or a copy of the Sharia  Mortgage
     Loan Security Instrument with evidence of recording indicated thereon.

          (xviii) An original  Assignment and Amendment of Security  Instrument,
     assigned to the Trustee with evidence of recording  indicated  thereon or a
     copy of such Assignment and Amendment of Security  Instrument with evidence
     of recording indicated thereon.

                                      -36-
<PAGE>

          (xix) The original  recorded  assignment or  assignments of the Sharia
     Mortgage Loan Security  Instrument  showing an unbroken chain of title from
     the  originator  thereof to the Person  assigning  it to the  Trustee  with
     evidence of  recordation  noted thereon or attached  thereto,  or a copy of
     such  assignment  or  assignments  of the  Sharia  Mortgage  Loan  Security
     Instrument with evidence of recording indicated thereon.

          (xx) The original  Sharia  Mortgage Loan  Co-Ownership  Agreement with
     respect  to the  related  Sharia  Mortgage  Loan or a copy  of such  Sharia
     Mortgage Loan Co-Ownership Agreement.

          (xxi) The original of each  modification or assumption  agreement,  if
     any,  relating to such Sharia Mortgage Loan or a copy of each  modification
     or assumption agreement.

     (c) The Company may, in lieu of  delivering  the original of the  documents
set forth in Sections  2.01(b)(I)  (iii),  (iv) and (v),  Sections  (b)(II)(ii),
(iv), (vii), (ix) and (x) and Sections  2.01(b)(III)(ii),  (iii),  (iv), (v) and
(vi) (or copies  thereof as permitted by Section  2.01(b)) to the Trustee or the
Custodian or Custodians on behalf of the Trustee,  deliver such documents to the
Master Servicer,  and the Master Servicer shall hold such documents in trust for
the use and benefit of all present and future Certificateholders until such time
as is set forth in the next sentence.  Within thirty Business Days following the
earlier  of (i)  the  receipt  of the  original  of  all  of  the  documents  or
instruments  set  forth in  Sections  2.01(b)(I)(iii),  (iv)  and (v),  Sections
(b)(II)(ii),  (iv),  (vii), (ix) and (x) and Sections  2.01(b)(III)(ii),  (iii),
(iv), (v) and (vi) (or copies  thereof) for any Mortgage Loan and (ii) a written
request by the Trustee to deliver those  documents with respect to any or all of
the Mortgage Loans then being held by the Master  Servicer,  the Master Servicer
shall  deliver a complete set of such  documents to the Trustee or the Custodian
or Custodians that are the duly appointed agent or agents of the Trustee.

     (d)  Notwithstanding  the provisions of Section 2.01(c), in connection with
any Mortgage  Loan, if the Company  cannot deliver the original of the Mortgage,
any assignment,  modification,  assumption agreement or preferred loan agreement
(or copy  thereof as permitted by Section  2.01(b))  with  evidence of recording
thereon  concurrently  with the execution and delivery of this Agreement because
of (i) a delay  caused by the  public  recording  office  where  such  Mortgage,
assignment,  modification,  assumption  agreement or preferred loan agreement as
the case may be,  has been  delivered  for  recordation,  or (ii) a delay in the
receipt of certain information necessary to prepare the related assignments, the
Company shall deliver or cause to be delivered to the Trustee or the  respective
Custodian  on  behalf  of the  Trustee  a copy  of  such  Mortgage,  assignment,
modification, assumption agreement or preferred loan agreement.

     The Company  (i) shall  promptly  cause to be  recorded in the  appropriate
public office for real  property  records the  Assignment  referred to in clause
(I)(iii)  of Section  2.01(b),  except (a) in states  where,  in the  opinion of
counsel  acceptable to the Master  Servicer,  such  recording is not required to
protect the  Trustee's  interests in the Mortgage  Loan against the claim of any
subsequent  transferee  or any  successor  to or  creditor of the Company or the
originator of such 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,  (ii) shall
promptly  cause to be filed  the  Form  UCC-3  assignment  and

                                      -37-
<PAGE>

UCC-1   financing   statement   referred  to  in  clauses   (II)(vii)  and  (x),
respectively,  of Section  2.01(b) and (iii) shall promptly cause to be recorded
in the  appropriate  public  recording  office  for real  property  records  the
Assignment  Agreement and Amendment of Security Instrument referred to in clause
(III)(iii)  of Section  2.01(b).  If any  Assignment,  Assignment  Agreement and
Amendment of Security  Instrument,  Form UCC-3 or Form UCC-1, as applicable,  is
lost or returned  unrecorded to the Company because of any defect  therein,  the
Company  shall  prepare  a  substitute  Assignment,   Assignment  Agreement  and
Amendment of Security  Instrument,  Form UCC-3 or Form UCC-1, as applicable,  or
cure such defect,  as the case may be, and cause such  Assignment  or Assignment
Agreement and Amendment of Security Instrument to be recorded in accordance with
this paragraph.  The Company shall promptly  deliver or cause to be delivered to
the applicable Person described in Section 2.01(b) such Assignment or substitute
Assignment or Assignment  Agreement and Amendment of Security Instrument or Form
UCC-3 or Form UCC-1,  as  applicable,  (or copy thereof)  recorded in connection
with this paragraph,  with evidence of recording  indicated  thereon at the time
specified in Section  2.01(c).  In connection  with its servicing of Cooperative
Loans, the Master Servicer will use its best efforts to file timely continuation
statements  with regard to each financing  statement and assignment  relating to
Cooperative  Loans as to which the  related  Cooperative  Apartment  is  located
outside of the State of New York.

     If the  Company  delivers  to the  Trustee  or  Custodian  on behalf of the
Trustee any Mortgage Note, Obligation to Pay, Assignment Agreement and Amendment
of Security Instrument or Assignment of Mortgage in blank, the Company shall, or
shall cause the Custodian to,  complete the  endorsement  of the Mortgage  Note,
Obligation to Pay, Assignment Agreement and Amendment of Security Instrument and
the  Assignment of Mortgage in the name of the Trustee in  conjunction  with the
Interim Certification issued by the Custodian, as contemplated by Section 2.02.

     Any of the  items  set  forth in  Sections  2.01(b)(II)(vi)  and  (vii) and
Sections  2.01(b)(III)(ii),  (iii),  and (iv)  that may be  delivered  as a copy
rather than the original may be delivered to the Trustee or the Custodian.

     In connection  with the  assignment of any Mortgage Loan  registered on the
MERS(R) System,  the Company further agrees that it will cause, at the Company's
own expense,  within 30 Business Days after the Closing Date, the MERS(R) System
to indicate  that such  Mortgage  Loans have been assigned by the Company to the
Trustee   in   accordance   with  this   Agreement   for  the   benefit  of  the
Certificateholders  by including  (or  deleting,  in the case of Mortgage  Loans
which are  repurchased in accordance with this Agreement) in such computer files
(a) the code in the field which identifies the specific Trustee and (b) the code
in the field "Pool Field" which identifies the series of the Certificates issued
in connection with such Mortgage Loans.  The Company further agrees that it will
not, and will not permit the Master  Servicer to, and the Master 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.

                                      -38-
<PAGE>

     (e) Residential Funding hereby assigns to the Trustee its security interest
in and to any  Additional  Collateral  or Pledged  Assets,  its right to receive
amounts due or to become due in respect of any Additional  Collateral or Pledged
Assets  pursuant  to the  related  Subservicing  Agreement  and  its  rights  as
beneficiary under the Surety Bond in respect of any Additional Collateral Loans.
With  respect  to  any  Additional   Collateral  Loan  or  Pledged  Asset  Loan,
Residential Funding shall cause to be filed in the appropriate  recording office
a UCC-3  statement  giving  notice of the  assignment  of the  related  security
interest to the Trust Fund and shall  thereafter  cause the timely filing of all
necessary continuation statements with regard to such financing statements.

     (f) It is intended that the conveyance by the Company to the Trustee of the
Mortgage  Loans as provided for in this  Section 2.01 be and the  Uncertificated
REMIC Regular Interests,  if any (as provided for in Section 2.06), be construed
as a  sale  by the  Company  to  the  Trustee  of the  Mortgage  Loans  and  any
Uncertificated    REMIC    Regular    Interests   for   the   benefit   of   the
Certificateholders.  Further,  it is not intended that such conveyance be deemed
to be a pledge  of the  Mortgage  Loans  and any  Uncertificated  REMIC  Regular
Interests by the Company to the Trustee to secure a debt or other  obligation of
the Company. However, if the Mortgage Loans and any Uncertificated REMIC Regular
Interests are held to be property of the Company or of Residential  Funding,  or
if for any reason this Agreement is held or deemed to create a security interest
in the Mortgage Loans and any Uncertificated REMIC Regular Interests, then it is
intended  that (a) this  Agreement  shall be a  security  agreement  within  the
meaning of  Articles  8 and 9 of the New York  Uniform  Commercial  Code and the
Uniform Commercial Code of any other applicable jurisdiction; (b) the conveyance
provided  for in Section  2.01 shall be deemed to be, and hereby is, (1) a grant
by the  Company to the Trustee of a security  interest  in all of the  Company's
right (including the power to convey title thereto), title and interest, whether
now owned or  hereafter  acquired,  in and to any and all  general  intangibles,
payment intangibles,  accounts,  chattel paper, instruments,  documents,  money,
deposit accounts,  certificates of deposit, goods, letters of credit, advices of
credit  and  investment   property  and  other  property  of  whatever  kind  or
description  now existing or hereafter  acquired  consisting of, arising from or
relating to any of the  following:  (A) the Mortgage  Loans,  including (i) with
respect to each Cooperative Loan, the related Mortgage Note, Security Agreement,
Assignment of Proprietary  Lease,  Cooperative Stock Certificate and Cooperative
Lease,  (ii) with  respect to each Sharia  Mortgage  Loan,  the  related  Sharia
Mortgage Loan Security Instrument,  Sharia Mortgage Loan Co-Ownership Agreement,
Obligation to Pay and Assignment Agreement and Amendment of Security Instrument,
(iii) with  respect to each  Mortgage  Loan other than a  Cooperative  Loan or a
Sharia  Mortgage  Loan,  the related  Mortgage Note and  Mortgage,  and (iv) any
insurance policies and all other documents in the related Mortgage File, (B) all
amounts  payable  pursuant to the Mortgage  Loans in  accordance  with the terms
thereof,  (C) any Uncertificated REMIC Regular Interests and (D) all proceeds of
the  conversion,   voluntary  or  involuntary,   of  the  foregoing  into  cash,
instruments,  securities or other  property,  including  without  limitation all
amounts  from time to time held or  invested in the  Certificate  Account or the
Custodial Account, whether in the form of cash, instruments, securities or other
property  and (2) an  assignment  by the Company to the Trustee of any  security
interest in any and all of Residential  Funding's right  (including the power to
convey  title  thereto),  title and  interest,  whether  now owned or  hereafter
acquired, in and to the property described in the foregoing clauses (1)(A), (B),
(C) and (D)  granted by  Residential  Funding  to the  Company  pursuant  to the
Assignment Agreement; (c) the possession by the Trustee, the Custodian on behalf
of the Trustee or any other agent of the Trustee of Mortgage

                                      -39-
<PAGE>

Notes or such other items of property as constitute instruments,  money, payment
intangibles,  negotiable documents,  goods, deposit accounts, letters of credit,
advices of credit, investment property, certificated securities or chattel paper
shall be deemed to be  "possession  by the secured  party," or  possession  by a
purchaser  or a  person  designated  by such  secured  party,  for  purposes  of
perfecting the security interest  pursuant to the Minnesota  Uniform  Commercial
Code and the Uniform Commercial Code of any other applicable  jurisdiction as in
effect (including, without limitation, Sections 8-106, 9-313 and 9-106 thereof);
and (d)  notifications  to persons holding such property,  and  acknowledgments,
receipts or  confirmations  from persons holding such property,  shall be deemed
notifications to, or acknowledgments, receipts or confirmations from, securities
intermediaries, bailees or agents of, or persons holding for (as applicable) the
Trustee for the purpose of perfecting  such security  interest under  applicable
law.

     The Company and, at the Company's  direction,  Residential  Funding and the
Trustee  shall,  to  the  extent  consistent  with  this  Agreement,  take  such
reasonable  actions as may be necessary to ensure that, if this  Agreement  were
determined  to  create  a  security   interest  in  the  Mortgage   Loans,   any
Uncertificated  REMIC Regular Interests and the other property  described above,
such security  interest would be determined to be a perfected  security interest
of first priority under applicable law and will be maintained as such throughout
the term of this  Agreement.  Without  limiting the generality of the foregoing,
the Company shall prepare and deliver to the Trustee not less than 15 days prior
to any filing date and, the Trustee shall forward for filing,  or shall cause to
be forwarded for filing, at the expense of the Company, all filings necessary to
maintain the  effectiveness of any original filings  necessary under the Uniform
Commercial  Code as in effect  in any  jurisdiction  to  perfect  the  Trustee's
security interest in or lien on the Mortgage Loans and any Uncertificated  REMIC
Regular  Interests,  as evidenced by an  Officers'  Certificate  of the Company,
including  without  limitation (x) continuation  statements,  and (y) such other
statements  as may be  occasioned  by (1) any  change  of  name  of  Residential
Funding, the Company or the Trustee (such preparation and filing shall be at the
expense of the Trustee,  if occasioned by a change in the Trustee's  name),  (2)
any change of location of the place of business or the chief executive office of
Residential  Funding  or the  Company,  (3)  any  transfer  of any  interest  of
Residential  Funding or the Company in any Mortgage  Loan or (4) any transfer of
any interest of Residential  Funding or the Company in any Uncertificated  REMIC
Regular Interest.

     (g) The  Master  Servicer  hereby  acknowledges  the  receipt  by it of the
Initial  Monthly  Payment  Fund.  The Master  Servicer  shall hold such  Initial
Monthly  Payment  Fund in the  Custodial  Account and shall  include the related
Initial  Monthly  Payment  Fund in the  Available  Distribution  Amount  for the
Mortgage  Loans or, with respect to any Mortgage  Pool  comprised of two or more
Loan Groups, the Mortgage Loans in each Loan Group, for the initial Distribution
Date.  Notwithstanding  anything  herein to the  contrary,  the Initial  Monthly
Payment Fund shall not be an asset of any REMIC.  To the extent that the Initial
Monthly Payment Fund constitutes a reserve fund for federal income tax purposes,
(1) it shall be an outside  reserve  fund and not an asset of any REMIC,  (2) it
shall be owned by the Seller  and (3)  amounts  transferred  by any REMIC to the
Initial  Monthly  Payment Fund shall be treated as  transferred to the Seller or
any  successor,  all within the meaning of Section  1.860G-2(h)  of the Treasury
Regulations.

                                      -40-
<PAGE>

     (h) The Company agrees that the sale of each Pledged Asset Loan pursuant to
this Agreement will also constitute the assignment, sale, setting-over, transfer
and  conveyance to the Trustee,  without  recourse (but subject to the Company's
covenants,  representations and warranties specifically provided herein), of all
of the Company's  obligations and all of the Company's right, title and interest
in, to and under,  whether now  existing or  hereafter  acquired as owner of the
Mortgage  Loan with  respect to all money,  securities,  security  entitlements,
accounts, general intangibles,  instruments, documents, certificates of deposit,
commodities  contracts,  and other  investment  property  and other  property of
whatever kind or  description  consisting of, arising from or related to (i) the
Assigned Contracts, (ii) all rights, powers and remedies of the Company as owner
of such  Mortgage  Loan  under or in  connection  with the  Assigned  Contracts,
whether arising under the terms of such Assigned  Contracts,  by statute, at law
or in equity,  or otherwise arising out of any default by the Mortgagor under or
in connection with the Assigned Contracts,  including all rights to exercise any
election  or  option  or to make any  decision  or  determination  or to give or
receive any notice, consent,  approval or waiver thereunder,  (iii) all security
interests  in and lien of the  Company  as owner  of such  Mortgage  Loan in the
Pledged  Amounts and all money,  securities,  security  entitlements,  accounts,
general   intangibles,   instruments,   documents,   certificates   of  deposit,
commodities  contracts,  and other  investment  property  and other  property of
whatever  kind or  description  and all cash and non-cash  proceeds of the sale,
exchange,  or  redemption  of,  and all stock or  conversion  rights,  rights to
subscribe,  liquidation  dividends or preferences,  stock  dividends,  rights to
interest, dividends, earnings, income, rents, issues, profits, interest payments
or  other  distributions  of cash or  other  property  that is  credited  to the
Custodial  Account,  (iv)  all  documents,  books  and  records  concerning  the
foregoing  (including  all computer  programs,  tapes,  disks and related  items
containing  any such  information)  and (v) all  insurance  proceeds  (including
proceeds  from the  Federal  Deposit  Insurance  Corporation  or the  Securities
Investor  Protection  Corporation or any other insurance  company) of any of the
foregoing  or  replacements  thereof  or  substitutions  therefor,  proceeds  of
proceeds and the  conversion,  voluntary  or  involuntary,  of any thereof.  The
foregoing transfer,  sale,  assignment and conveyance does not constitute and is
not intended to result in the creation,  or an assumption by the Trustee, of any
obligation of the Company,  or any other person in  connection  with the Pledged
Assets or under any  agreement or  instrument  relating  thereto,  including any
obligation to the Mortgagor, other than as owner of the Mortgage Loan.

Section 2.02   ACCEPTANCE BY TRUSTEE.

     The Trustee  acknowledges  receipt  (or,  with  respect to  Mortgage  Loans
subject  to  a  Custodial  Agreement,   and  based  solely  upon  a  receipt  or
certification executed by the Custodian,  receipt by the respective Custodian as
the duly appointed agent of the Trustee) of the documents referred to in Section
2.01(b)(I)(i)  and Section  2.01(b)(II)(i),  (iii),  (v),  (vi) and (viii) above
(except that for purposes of such  acknowledgment  only, a Mortgage  Note may be
endorsed in blank) and declares that it, or a Custodian as its agent,  holds and
will hold such  documents  and the other  documents  constituting  a part of the
Custodial Files delivered to it, or a Custodian as its agent,  and the rights of
Residential  Funding with respect to any Pledged Assets,  Additional  Collateral
and the Surety Bond  assigned to the Trustee  pursuant to Section 2.01, in trust
for the use and  benefit  of all  present  and  future  Certificateholders.  The
Trustee or  Custodian  (such  Custodian  being so  obligated  under a  Custodial
Agreement)  agrees,  for the  benefit  of  Certificateholders,  to  review  each
Custodial File delivered to it pursuant to

                                      -41-
<PAGE>

Section  2.01(b)  within 45 days after the Closing  Date to  ascertain  that all
required  documents  (specifically as set forth in Section  2.01(b)),  have been
executed and  received,  and that such  documents  relate to the Mortgage  Loans
identified  on the  Mortgage  Loan  Schedule,  as  supplemented,  that have been
conveyed  to it, and to  deliver  to the  Trustee a  certificate  (the  "Interim
Certification")  to the  effect  that all  documents  required  to be  delivered
pursuant to Section  2.01(b) above have been executed and received and that such
documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule,
except  for any  exceptions  listed  on  Schedule  A  attached  to such  Interim
Certification. Upon delivery of the Custodial Files by the Company or the Master
Servicer,  the Trustee shall  acknowledge  receipt (or, with respect to Mortgage
Loans  subject to a  Custodial  Agreement,  and based  solely  upon a receipt or
certification executed by the Custodian,  receipt by the respective Custodian as
the duly appointed agent of the Trustee) of the documents referred to in Section
2.01(c) above.

     If the Custodian,  as the Trustee's agent,  finds any document or documents
constituting a part of a Custodial File to be missing or defective,  the Trustee
shall  promptly  so notify the Master  Servicer  and the  Company.  Pursuant  to
Section 2.3 of the Custodial  Agreement,  the  Custodian  will notify the Master
Servicer, the Company and the Trustee of any such omission or defect found by it
in respect of any Custodial  File held by it in respect of the items reviewed by
it pursuant to the Custodial  Agreement.  If such omission or defect  materially
and  adversely  affects  the  interests  of the  Certificateholders,  the Master
Servicer shall promptly  notify  Residential  Funding of such omission or defect
and request that  Residential  Funding  correct or cure such  omission or defect
within 60 days from the date the Master  Servicer was notified of such  omission
or defect and, if Residential  Funding does not correct or cure such omission or
defect within such period, the Master Servicer shall require Residential Funding
to purchase such Mortgage Loan from the Trust Fund at its Purchase  Price within
90 days from the date the Master  Servicer  was  notified  of such  omission  or
defect; provided that if the omission or defect would cause the Mortgage Loan to
be other than a  "qualified  mortgage" as defined in Section  860G(a)(3)  of the
Code,  any such cure or repurchase  must occur within 90 days from the date such
breach was  discovered.  The Purchase  Price for any such Mortgage Loan shall be
deposited  by the Master  Servicer in the  Custodial  Account  maintained  by it
pursuant  to  Section  3.07  and,   upon  receipt  by  the  Trustee  of  written
notification of such deposit signed by a Servicing Officer, the Master Servicer,
the Trustee or any Custodian,  as the case may be, shall release the contents of
any related  Mortgage File in its  possession to the owner of such Mortgage Loan
(or such  owner's  designee)  and the Trustee  shall  execute  and deliver  such
instruments of transfer or assignment  prepared by the Master Servicer,  in each
case without recourse,  as shall be necessary to vest in Residential  Funding or
its designee any Mortgage  Loan released  pursuant  hereto and  thereafter  such
Mortgage Loan shall not be part of the Trust Fund.  It is understood  and agreed
that the obligation of  Residential  Funding to so cure or purchase any Mortgage
Loan as to which a material and adverse  defect in or omission of a  constituent
document  exists  shall  constitute  the sole remedy  respecting  such defect or
omission  available  to  Certificateholders  or the  Trustee  on  behalf  of the
Certificateholders.

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

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

                                      -42-
<PAGE>

          (i) The Master Servicer is a limited liability company duly organized,
     validly existing and in good standing under the laws governing its creation
     and existence  and is or will be in compliance  with the laws of each state
     in which any  Mortgaged  Property  is located to the  extent  necessary  to
     ensure the  enforceability  of each Mortgage  Loan in  accordance  with the
     terms of this Agreement;

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

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

          (iv) The Master  Servicer is not in default  with respect to any order
     or decree of any court or any order,  regulation  or demand of any federal,
     state,   municipal  or  governmental   agency,  which  default  might  have
     consequences  that would  materially  and  adversely  affect the  condition
     (financial or other) or operations of the Master Servicer or its properties
     or might have  consequences  that  would  materially  adversely  affect its
     performance hereunder;

          (v) No litigation is pending or, to the best of the Master  Servicer's
     knowledge,  threatened against the Master Servicer which would prohibit its
     entering  into this  Agreement or  performing  its  obligations  under this
     Agreement;

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

          (vii) No information,  certificate of an officer,  statement furnished
     in writing or report delivered to the Company, any Affiliate of the Company
     or the Trustee by the Master  Servicer will, to the knowledge of the Master
     Servicer,  contain  any  untrue  statement  of a  material  fact  or omit a
     material fact necessary to make the information,  certificate, statement or
     report not misleading;

          (viii)  The Master  Servicer  has  examined  each  existing,  and will
     examine each new,  Subservicing  Agreement  and is or will be familiar with
     the terms thereof.  The terms of each existing  Subservicing  Agreement and
     each  designated  Subservicer are acceptable to the Master Servicer and any
     new  Subservicing  Agreements  will comply with the  provisions  of Section
     3.02; and

                                      -43-
<PAGE>

          (ix) The Master  Servicer  is 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.

     It is understood  and agreed that the  representations  and  warranties set
     forth in this Section  2.03(a)  shall  survive  delivery of the  respective
     Custodial Files to the Trustee or any Custodian.

     Upon discovery by either the Company,  the Master Servicer,  the Trustee or
any  Custodian of a breach of any  representation  or warranty set forth in this
Section  2.03(a) which  materially  and  adversely  affects the interests of the
Certificateholders in any Mortgage Loan, the party discovering such breach shall
give  prompt  written  notice  to the  other  parties  (any  Custodian  being so
obligated under a Custodial  Agreement).  Within 90 days of its discovery or its
receipt of notice of such breach, the Master Servicer shall either (i) cure such
breach in all  material  respects or (ii) to the extent that such breach is with
respect to a Mortgage  Loan or a related  document,  purchase such Mortgage Loan
from the Trust Fund at the Purchase Price and in the manner set forth in Section
2.02;  provided  that if the omission or defect would cause the Mortgage Loan to
be other than a  "qualified  mortgage" as defined in Section  860G(a)(3)  of the
Code,  any such cure or repurchase  must occur within 90 days from the date such
breach was discovered. The obligation of the Master Servicer to cure such breach
or to so purchase such Mortgage Loan shall constitute the sole remedy in respect
of a breach of a  representation  and warranty set forth in this Section 2.03(a)
available   to  the   Certificateholders   or  the  Trustee  on  behalf  of  the
Certificateholders.

     (b)  Representations  and warranties relating to the Mortgage Loans are set
forth in Section 2.03(b) of the Series Supplement.

     Section 2.04   Representations and Warranties of Residential Funding.

     The  Company,  as  assignee of  Residential  Funding  under the  Assignment
Agreement,  hereby assigns to the Trustee for the benefit of  Certificateholders
all of its right, title and interest in respect of the Assignment  Agreement (to
the  extent  assigned  to the  Company  pursuant  to the  Assignment  Agreement)
applicable to a Mortgage Loan.  Insofar as the Assignment  Agreement  relates to
the  representations  and warranties made by Residential  Funding or the related
Seller in respect of such Mortgage Loan and any remedies provided thereunder for
any  breach  of such  representations  and  warranties,  such  right,  title and
interest may be enforced by the Master Servicer on behalf of the Trustee and the
Certificateholders.  Upon the discovery by the Company, the Master Servicer, the
Trustee  or  any  Custodian  of a  breach  of any  of  the  representations  and
warranties made in the Assignment Agreement (which, for purposes hereof, will be
deemed to include any other cause giving rise to a repurchase  obligation  under
the Assignment  Agreement) in respect of any Mortgage Loan which  materially and
adversely affects the interests of the Certificateholders in such Mortgage Loan,
the party  discovering such breach shall give prompt written notice to the other
parties (any  Custodian  being so obligated  under a Custodial  Agreement).  The
Master  Servicer shall promptly  notify  Residential  Funding of such breach and
request  that  Residential  Funding  either (i) cure such breach in all material
respects  within 90 days from the date the Master  Servicer was notified of such
breach or (ii)  purchase  such Mortgage Loan from the Trust Fund at the Purchase
Price and in the manner set forth in

                                      -44-
<PAGE>

Section  2.02;  provided  that  Residential  Funding  shall  have the  option to
substitute a Qualified  Substitute Mortgage Loan or Loans for such Mortgage Loan
if such  substitution  occurs  within  two years  following  the  Closing  Date;
provided  that if the breach  would cause the  Mortgage  Loan to be other than a
"qualified  mortgage"  as defined in Section  860G(a)(3)  of the Code,  any such
cure,  repurchase  or  substitution  must occur within 90 days from the date the
breach was discovered.  If the breach of  representation  and warranty that gave
rise to the  obligation  to repurchase or substitute a Mortgage Loan pursuant to
Section 4 of the Assignment  Agreement was the  representation  and warranty set
forth in clause  (xii) or  (xxxviii)  of  Section  4  thereof,  then the  Master
Servicer  shall  request  that  Residential  Funding  pay  to  the  Trust  Fund,
concurrently  with and in addition  to the  remedies  provided in the  preceding
sentence, an amount equal to any liability, penalty or expense that was actually
incurred  and paid out of or on  behalf  of the Trust  Fund,  and that  directly
resulted from such breach, or if incurred and paid by the Trust Fund thereafter,
concurrently with such payment.  In the event that Residential Funding elects to
substitute a Qualified  Substitute Mortgage Loan or Loans for a Deleted Mortgage
Loan  pursuant to this Section  2.04,  Residential  Funding shall deliver to the
Trustee or the Custodian for the benefit of the Certificateholders  with respect
to such Qualified Substitute Mortgage Loan or Loans, the original Mortgage Note,
the  Mortgage,  an  Assignment  of the Mortgage in  recordable  form if required
pursuant  to  Section  2.01,  and such other  documents  and  agreements  as are
required by Section 2.01, with the Mortgage Note endorsed as required by Section
2.01. No substitution will be made in any calendar month after the Determination
Date for such month.  Monthly Payments due with respect to Qualified  Substitute
Mortgage Loans in the month of substitution  shall not be part of the Trust Fund
and will be retained by the Master  Servicer and remitted by the Master Servicer
to Residential  Funding on the next succeeding  Distribution Date. For the month
of  substitution,  distributions  to the  Certificateholders  will  include  the
Monthly  Payment due on a Deleted  Mortgage  Loan for such month and  thereafter
Residential  Funding shall be entitled to retain all amounts received in respect
of such Deleted  Mortgage Loan.  The Master  Servicer shall amend or cause to be
amended the Mortgage  Loan  Schedule,  and, if the Deleted  Mortgage  Loan was a
Discount Mortgage Loan, the Schedule of Discount  Fractions,  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
Master  Servicer shall deliver the amended  Mortgage Loan Schedule,  and, if the
Deleted  Mortgage Loan was a Discount  Mortgage  Loan,  the amended  Schedule of
Discount  Fractions,  to the  Trustee.  Upon such  substitution,  the  Qualified
Substitute  Mortgage  Loan or  Loans  shall  be  subject  to the  terms  of this
Agreement and the related  Subservicing  Agreement in all respects,  Residential
Funding shall be deemed to have made the  representations  and  warranties  with
respect to the  Qualified  Substitute  Mortgage  Loan  contained  in the related
Assignment Agreement, and the Company and the Master Servicer shall be deemed to
have made with respect to any Qualified Substitute Mortgage Loan or Loans, as of
the date of  substitution,  the  covenants,  representations  and warranties set
forth in this  Section  2.04,  in  Section  2.03  hereof and in Section 4 of the
Assignment  Agreement,  and the Master Servicer shall be obligated to repurchase
or  substitute  for  any  Qualified  Substitute  Mortgage  Loan  as to  which  a
Repurchase Event (as defined in the Assignment  Agreement) has occurred pursuant
to Section 4 of the Assignment Agreement.

                                      -45-
<PAGE>

     In connection  with the  substitution  of one or more Qualified  Substitute
Mortgage Loans for one or more Deleted  Mortgage Loans, the Master Servicer will
determine  the amount (if any) by which the aggregate  principal  balance of all
such Qualified  Substitute Mortgage Loans as of the date of substitution is less
than the aggregate Stated  Principal  Balance of all such Deleted Mortgage Loans
(in each case after application of the principal portion of the Monthly Payments
due  in  the  month  of   substitution   that  are  to  be  distributed  to  the
Certificateholders  in the month of  substitution).  Residential  Funding  shall
deposit the amount of such  shortfall  into the Custodial  Account on the day of
substitution, without any reimbursement therefor. Residential Funding shall give
notice  in  writing  to the  Trustee  of  such  event,  which  notice  shall  be
accompanied by an Officers'  Certificate as to the calculation of such shortfall
and  (subject to Section  10.01(f))  by 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)(1) of the Code or on "contributions  after
the startup date" under Section 860G(d)(1) of the Code or (b) any portion of any
REMIC  to  fail  to  qualify  as  such  at any  time  that  any  Certificate  is
outstanding.

     It is understood and agreed that the  obligation of Residential  Funding to
cure such breach or purchase or to  substitute  for,  such  Mortgage  Loan as to
which such a breach has occurred and is  continuing  and to make any  additional
payments required under the Assignment  Agreement in connection with a breach of
the  representation  and  warranty  in clause  (xii) or  (xxxviii)  of Section 4
thereof shall constitute the sole remedy respecting such breach available to the
Certificateholders or the Trustee on behalf of Certificateholders. If the Master
Servicer is Residential  Funding,  then the Trustee shall also have the right to
give the notification  and require the purchase or substitution  PROVIDED for in
the second preceding paragraph in the event of such a breach of a representation
or  warranty  made  by  Residential  Funding  in the  Assignment  Agreement.  In
connection  with the purchase of or  substitution  for any such Mortgage Loan by
Residential  Funding, the Trustee shall assign to Residential Funding all of the
Trustee's  right,  title and  interest  in respect of the  Assignment  Agreement
applicable to such Mortgage Loan.

     Section 2.05   Execution  and  Authentication  of Certificates/Issuance  of
Certificates Evidencing Interests in REMIC I

     As provided in Section 2.05 of the Series Supplement.

     Section  2.06  Conveyance  of  Uncertificated  REMIC I and REMIC II Regular
Interests; Acceptance by the Trustee

     As PROVIDED in Section 2.06 of the Series Supplement.

     Section 2.07   Issuance of Certificates Evidencing Interests in REMIC II

     As PROVIDED in Section 2.07 of the Series Supplement.

     Section 2.08   Purposes and Powers of the Trust

     The  purpose  of the  trust,  as  created  hereunder,  is to  engage in the
following activities:

     (a) to sell the  Certificates  to the Company in exchange  for the Mortgage
Loans;

                                      -46-
<PAGE>

     (b) to enter into and perform its obligations under this Agreement;

     (c)  to  engage  in  those  activities  that  are  necessary,  suitable  or
convenient to accomplish  the foregoing or are  incidental  thereto or connected
therewith; and

     (d)  subject to  compliance  with this  Agreement,  to engage in such other
activities as may be required in connection with  conservation of the Trust Fund
and the making of distributions to the Certificateholders.

     The trust is hereby  authorized  to  engage  in the  foregoing  activities.
Notwithstanding  the provisions of Section 11.01,  the trust shall not engage in
any  activity  other  than in  connection  with the  foregoing  or other than as
required or authorized by the terms of this Agreement  while any  Certificate is
outstanding,  and this Section  2.08 may not be amended,  without the consent of
the  Certificateholders  evidencing a majority of the aggregate Voting Rights of
the Certificates.

                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

     Section 3.01   Master Servicer to Act as Servicer.

     (a) The Master  Servicer shall service and administer the Mortgage Loans in
accordance with the terms of this Agreement and the respective  Mortgage Loans ,
following such procedures as it would employ in its good faith business judgment
and which are normal and usual in its general mortgage servicing activities, and
in the case of the Mortgage Loans being subserviced by Wells Fargo, if any, such
procedures that comply with applicable federal, state and local law and that are
in accordance with accepted  mortgage  servicing  practices of prudent  mortgage
lending  institutions which service loans of the same type as the Mortgage Loans
in the  jurisdiction  in which the related  Mortgaged  Property is located,  and
shall have full power and  authority,  acting alone or through  Subservicers  as
provided in Section 3.02,  to do any and all things which it may deem  necessary
or desirable in  connection  with such  servicing  and  administration.  Without
limiting the generality of the foregoing, the Master Servicer in its own name or
in the name of a Subservicer  is hereby  authorized and empowered by the Trustee
when the Master  Servicer or the  Subservicer,  as the case may be,  believes it
appropriate  in its best  judgment,  to execute  and  deliver,  on behalf of the
Certificateholders  and the Trustee or any of them,  any and all  instruments of
satisfaction or cancellation,  or of partial or full release or discharge, or of
consent to assumption or modification in connection with a proposed  conveyance,
or of  assignment  of any  Mortgage  and Mortgage  Note in  connection  with the
repurchase  of a Mortgage  Loan and all other  comparable  instruments,  or with
respect to the  modification  or  re-recording  of a Mortgage for the purpose of
correcting the Mortgage,  the subordination of the lien of the Mortgage in favor
of a public utility company or government  agency or unit with powers of eminent
domain,  the  taking  of a  deed  in  lieu  of  foreclosure,  the  commencement,
prosecution  or  completion  of  judicial  or  non-judicial   foreclosure,   the
conveyance of a Mortgaged  Property to the related  Insurer,  the acquisition of
any property  acquired by  foreclosure  or deed in lieu of  foreclosure,  or the
management,  marketing and conveyance of any property acquired by foreclosure or
deed in lieu of foreclosure  with respect to

                                      -47-
<PAGE>

the Mortgage  Loans and with  respect to the  Mortgaged  Properties.  The Master
Servicer  further is authorized  and empowered by the Trustee,  on behalf of the
Certificateholders  and  the  Trustee,  in its own  name  or in the  name of the
Subservicer,  when the Master 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 expenses  incurred in connection  with the actions
described in the  preceding  sentence  shall be borne by the Master  Servicer in
accordance with Section 3.16(c), with no right of reimbursement;  PROVIDED, that
if, as a result of MERS discontinuing or becoming unable to continue  operations
in connection with the MERS System,  it becomes necessary to remove any Mortgage
Loan from  registration  on the MERS System and to arrange for the assignment of
the  related  Mortgages  to the  Trustee,  then any  related  expenses  shall be
reimbursable to the Master Servicer.  Notwithstanding the foregoing,  subject to
Section  3.07(a),  the Master  Servicer shall not permit any  modification  with
respect to 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 3.13(d) hereof)
and cause any REMIC formed under the Series  Supplement  to fail to qualify as a
REMIC under the Code.  The Trustee  shall  furnish the Master  Servicer with any
powers of attorney and other  documents  necessary or  appropriate to enable the
Master Servicer to service and administer the Mortgage Loans.  The Trustee shall
not be liable for any action  taken by the Master  Servicer  or any  Subservicer
pursuant  to such  powers  of  attorney.  In  servicing  and  administering  any
Nonsubserviced  Mortgage  Loan,  the Master  Servicer  shall,  to the extent not
inconsistent  with this  Agreement,  comply with the Program Guide as if it were
the  originator of such Mortgage Loan and had retained the servicing  rights and
obligations in respect thereof.  In connection with servicing and  administering
the Mortgage Loans, the Master Servicer and any Affiliate of the Master Servicer
(i) may perform services such as appraisals and brokerage  services that are not
customarily  provided by servicers of mortgage  loans,  and shall be entitled to
reasonable  compensation  therefor in accordance with Section 3.10 and (ii) may,
at its own discretion and on behalf of the Trustee, obtain credit information in
the form of a "credit score" from a credit repository.

     (b) All  costs  incurred  by the  Master  Servicer  or by  Subservicers  in
effecting the timely payment of taxes and assessments on the properties  subject
to the  Mortgage  Loans  shall  not,  for the  purpose  of  calculating  monthly
distributions to the Certificateholders,  be added to the amount owing under the
related Mortgage Loans,  notwithstanding that the terms of such Mortgage Loan so
permit,  and such costs shall be recoverable to the extent  permitted by Section
3.10(a)(ii).

                                      -48-
<PAGE>

     (c) The Master Servicer may enter into one or more agreements in connection
with the offering of pass-through  certificates  evidencing  interests in one or
more of the  Certificates  providing  for the payment by the Master  Servicer of
amounts received by the Master Servicer as servicing  compensation hereunder and
required to cover certain Prepayment  Interest Shortfalls on the Mortgage Loans,
which payment obligation will thereafter be an obligation of the Master Servicer
hereunder.

     Section  3.02   Subservicing   Agreements   Between  Master   Servicer  and
Subservicers; Enforcement of Subservicers' and Sellers' Obligations

     (a) The Master  Servicer  may  continue in effect  Subservicing  Agreements
entered into by Residential  Funding and Subservicers prior to the execution and
delivery of this Agreement,  and may enter into new Subservicing Agreements with
Subservicers,  for  the  servicing  and  administration  of all or  some  of the
Mortgage Loans. Each Subservicer of a Mortgage Loan shall be entitled to receive
and retain,  as provided in the related  Subservicing  Agreement  and in Section
3.07, the related  Subservicing  Fee from payments of interest  received on such
Mortgage Loan after payment of all amounts required to be remitted to the Master
Servicer  in respect of such  Mortgage  Loan.  For any  Mortgage  Loan that is a
Nonsubserviced  Mortgage Loan, the Master  Servicer shall be entitled to receive
and retain an amount equal to the  Subservicing  Fee from  payments of interest.
Unless the context otherwise  requires,  references in this Agreement to actions
taken or to be taken by the Master  Servicer in  servicing  the  Mortgage  Loans
include  actions taken or to be taken by a  Subservicer  on behalf of the Master
Servicer.  Each Subservicing Agreement will be upon such terms and conditions as
are  generally   required  or  permitted  by  the  Program  Guide  and  are  not
inconsistent  with this Agreement and as the Master Servicer and the Subservicer
have agreed. A representative form of Subservicing Agreement is attached to this
Agreement as Exhibit E. With the approval of the Master Servicer,  a Subservicer
may  delegate its  servicing  obligations  to  third-party  servicers,  but such
Subservicer will remain obligated under the related Subservicing Agreement.  The
Master  Servicer  and a  Subservicer  may enter  into  amendments  thereto  or a
different form of Subservicing  Agreement,  and the form referred to or included
in the Program Guide is merely  provided for information and shall not be deemed
to limit in any respect the discretion of the Master Servicer to modify or enter
into  different  Subservicing  Agreements;  PROVIDED,  HOWEVER,  that  any  such
amendments  or  different  forms  shall be  consistent  with and not violate the
provisions of either this Agreement or the Program Guide in a manner which would
materially  and adversely  affect the interests of the  Certificateholders.  The
Program  Guide and any other  Subservicing  Agreement  entered  into between the
Master Servicer and any Subservicer  shall require the Subservicer to accurately
and fully report its borrower credit files to each of the Credit Repositories in
a timely manner.

     (b) As part of its servicing activities hereunder, the Master Servicer, for
the  benefit  of the  Trustee  and the  Certificateholders,  shall  use its best
reasonable  efforts to enforce the  obligations  of each  Subservicer  under the
related  Subservicing  Agreement  and of each Seller under the related  Seller's
Agreement  insofar as the Company's  rights with respect to such  obligation has
been assigned to the Trustee hereunder,  to the extent that the  non-performance
of any such Seller's  obligation  would have a material and adverse  effect on a
Mortgage  Loan,  including,  without  limitation,  the  obligation to purchase a
Mortgage  Loan on account of  defective  documentation,  as described in Section
2.02, or on account of a breach of a representation or warranty, as described in
Section  2.04.  Such  enforcement,  including,  without

                                      -49-
<PAGE>

limitation,  the  legal  prosecution  of  claims,  termination  of  Subservicing
Agreements  or Seller's  Agreements,  as  appropriate,  and the pursuit of other
appropriate  remedies,  shall be in such form and  carried out to such an extent
and at such time as the Master  Servicer would employ in its good faith business
judgment  and  which are  normal  and usual in its  general  mortgage  servicing
activities.  The Master Servicer shall pay the costs of such  enforcement at its
own expense,  and shall be reimbursed  therefor only (i) from a general recovery
resulting  from such  enforcement  to the  extent,  if any,  that such  recovery
exceeds all amounts due in respect of the related  Mortgage  Loan or (ii) from a
specific recovery of costs, expenses or attorneys fees against the party against
whom such  enforcement  is directed.  For purposes of  clarification  only,  the
parties  agree that the  foregoing is not  intended to, and does not,  limit the
ability of the Master  Servicer to be reimbursed  for expenses that are incurred
in connection  with the  enforcement of a Seller's  obligations  (insofar as the
Company's rights with respect to such Seller's obligations have been assigned to
the Trustee hereunder) and are reimbursable pursuant to Section 3.10(a)(viii).

     Section 3.03   Successor Subservicers

     The  Master  Servicer  shall be  entitled  to  terminate  any  Subservicing
Agreement  that may exist in  accordance  with the terms and  conditions of such
Subservicing  Agreement and without any limitation by virtue of this  Agreement;
PROVIDED,  HOWEVER,  that  in the  event  of  termination  of  any  Subservicing
Agreement by the Master Servicer or the  Subservicer,  the Master Servicer shall
either act as servicer of the related Mortgage Loan or enter into a Subservicing
Agreement with a successor  Subservicer  which will be bound by the terms of the
related  Subservicing  Agreement.  If the Master  Servicer or any  Affiliate  of
Residential  Funding  acts as  servicer,  it will not assume  liability  for the
representations  and  warranties of the  Subservicer  which it replaces.  If the
Master  Servicer   enters  into  a  Subservicing   Agreement  with  a  successor
Subservicer,  the  Master  Servicer  shall use  reasonable  efforts  to have the
successor  Subservicer assume liability for the  representations  and warranties
made by the terminated Subservicer in respect of the related Mortgage Loans and,
in the event of any such  assumption  by the successor  Subservicer,  the Master
Servicer may, in the exercise of its business  judgment,  release the terminated
Subservicer from liability for such representations and warranties.

     Section 3.04   Liability of the Master Servicer

     Notwithstanding any Subservicing  Agreement,  any of the provisions of this
Agreement relating to agreements or arrangements  between the Master Servicer or
a Subservicer  or reference to actions taken through a Subservicer or otherwise,
the Master  Servicer  shall remain  obligated  and liable to the Trustee and the
Certificateholders  for the servicing and administering of the Mortgage Loans in
accordance  with the  provisions  of Section  3.01  without  diminution  of such
obligation   or  liability  by  virtue  of  such   Subservicing   Agreements  or
arrangements or by virtue of indemnification from the Subservicer or the Company
and to the same extent and under the same terms and  conditions as if the Master
Servicer alone were servicing and  administering  the Mortgage Loans. The Master
Servicer  shall be entitled to enter into any agreement  with a  Subservicer  or
Seller for  indemnification of the Master Servicer and nothing contained in this
Agreement shall be deemed to limit or modify such indemnification.

                                      -50-
<PAGE>

     Section 3.05   No Contractual Relationship Between Subservicer and Trustee
or Certificateholders

     Any  Subservicing  Agreement  that  may  be  entered  into  and  any  other
transactions or services  relating to the Mortgage Loans involving a Subservicer
in its capacity as such and not as an  originator  shall be deemed to be between
the  Subservicer  and  the  Master  Servicer  alone  and  the  Trustee  and  the
Certificateholders shall not be deemed parties thereto and shall have no claims,
rights,  obligations,  duties or liabilities  with respect to the Subservicer in
its  capacity  as such  except  as set  forth in  Section  3.06.  The  foregoing
provision  shall  not in any way  limit a  Subservicer's  obligation  to cure an
omission or defect or to  repurchase  a Mortgage  Loan as referred to in Section
2.02 hereof.

     Section 3.06   Assumption  or  Termination  of Subservicing  Agreements  by
Trustee

     (a) If the  Master  Servicer  shall for any  reason no longer be the master
servicer (including by reason of an Event of Default), the Trustee, its designee
or its successor shall thereupon assume all of the rights and obligations of the
Master  Servicer  under each  Subservicing  Agreement that may have been entered
into. The Trustee,  its designee or the successor servicer for the Trustee shall
be deemed to have assumed all of the Master  Servicer's  interest therein and to
have replaced the Master  Servicer as a party to the  Subservicing  Agreement to
the same  extent  as if the  Subservicing  Agreement  had been  assigned  to the
assuming party except that the Master  Servicer shall not thereby be relieved of
any liability or obligations under the Subservicing Agreement.

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

     Section 3.07   Collection of Certain  Mortgage Loan  Payments;  Deposits to
Custodial Account

     (a) The Master  Servicer  shall  make  reasonable  efforts  to collect  all
payments  called for under the terms and provisions of the Mortgage  Loans,  and
shall, to the extent such procedures shall be consistent with this Agreement and
the terms and provisions of any related Primary  Insurance  Policy,  follow such
collection procedures as it would employ in its good faith business judgment and
which  are  normal  and  usual in its  general  mortgage  servicing  activities.
Consistent  with the  foregoing,  the Master  Servicer may in its discretion (i)
waive any late payment  charge or any prepayment  charge or penalty  interest in
connection  with the  prepayment of a Mortgage Loan and (ii) extend the Due Date
for  payments  due on a Mortgage  Loan in  accordance  with the  Program  Guide;
PROVIDED,  HOWEVER, that the Master Servicer shall first determine that any such
waiver  or  extension  will not  impair  the  coverage  of any  related  Primary
Insurance  Policy  or  materially  adversely  affect  the  lien  of the  related
Mortgage.  Notwithstanding  anything in this Section to the contrary, the Master
Servicer  or any  Subservicer  shall not enforce  any  prepayment  charge to the
extent that such  enforcement  would violate any applicable law. In the event of
any such  arrangement,  the Master  Servicer  shall make timely  advances on the

                                      -51-
<PAGE>

related  Mortgage  Loan  during  the  scheduled  period in  accordance  with the
amortization  schedule of such  Mortgage  Loan without  modification  thereof by
reason of such  arrangements  unless  otherwise  agreed to by the Holders of the
Classes  of  Certificates  affected  thereby;  PROVIDED,  HOWEVER,  that no such
extension shall be made if any such advance would be a  Nonrecoverable  Advance.
Consistent with the terms of this Agreement, the Master 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 Master 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 Master Servicer may not
modify  materially  or permit  any  Subservicer  to modify  any  Mortgage  Loan,
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
prepayments to the extent that such  reamortization is not inconsistent with the
terms of the Mortgage  Loan),  capitalize any amounts owing on the Mortgage Loan
by adding such amount to the outstanding principal balance of the Mortgage Loan,
or extend the final  maturity date of such Mortgage  Loan,  unless such Mortgage
Loan is in default or, in the judgment of the Master  Servicer,  such default is
reasonably foreseeable;  PROVIDED,  FURTHER, that (1) no such modification shall
reduce the interest  rate on a Mortgage Loan below the sum of the rates at which
the  Servicing Fee and the  Subservicing  Fee with respect to such Mortgage Loan
accrues plus the rate at which the premium paid to the Certificate  Insurer,  if
any, accrues, and (2) the final maturity date for any Mortgage Loan shall not be
extended beyond the Maturity Date. In addition,  any amounts owing on a Mortgage
Loan added to the  outstanding  principal  balance of such Mortgage Loan must be
fully  amortized over the remaining term of such Mortgage Loan, and such amounts
may be added to the outstanding  principal  balance of a Mortgage Loan only once
during the life of such  Mortgage  Loan.  Also,  the  addition  of such  amounts
described in the preceding  sentence shall be implemented in accordance with the
Program  Guide  and may be  implemented  only by  Subservicers  that  have  been
approved  by the  Master  Servicer  for such  purpose.  In  connection  with any
Curtailment  of a  Mortgage  Loan,  the  Master  Servicer,  to  the  extent  not
inconsistent with the terms of the Mortgage Note and local law and practice, may
permit the  Mortgage  Loan to be  reamortized  such that the Monthly  Payment is
recalculated  as an  amount  that  will  fully  amortize  the  remaining  Stated
Principal  Balance  thereof by the original  Maturity Date based on the original
Mortgage Rate; provided,  that such re-amortization shall not be permitted if it
would  constitute  a  reissuance  of the  Mortgage  Loan for federal  income tax
purposes,  except if such reissuance is described in Treasury Regulation Section
1.860G-2(b)(3).

     (b) The Master Servicer shall establish and maintain a Custodial Account in
which the Master  Servicer  shall  deposit or cause to be  deposited  within two
Business  Days  of  receipt  by  the  Master   Servicer,   except  as  otherwise
specifically provided herein, the following payments and collections remitted by
Subservicers  or received by it in respect of the Mortgage  Loans  subsequent to
the  Cut-off  Date  (other  than in respect of  principal  and  interest  on the
Mortgage Loans due on or before the Cut-off Date):

                                      -52-
<PAGE>

          (i)  All  payments  on  account  of  principal,   including  Principal
     Prepayments  made by  Mortgagors  on the Mortgage  Loans and the  principal
     component of any  Subservicer  Advance or of any REO  Proceeds  received in
     connection with an REO Property for which an REO Disposition has occurred;

          (ii) All payments on account of interest at the Adjusted Mortgage Rate
     on the Mortgage  Loans,  including  Buydown Funds, if any, and the interest
     component of any  Subservicer  Advance or of any REO  Proceeds  received in
     connection with an REO Property for which an REO Disposition has occurred;

          (iii)  Insurance  Proceeds,   Subsequent  Recoveries  and  Liquidation
     Proceeds (net of any related expenses of the Subservicer);

          (iv) All proceeds of any Mortgage Loans purchased  pursuant to Section
     2.02,  2.03, 2.04, 4.07 or 9.01 and all amounts required to be deposited in
     connection with the  substitution of a Qualified  Substitute  Mortgage Loan
     pursuant to Section 2.03 or 2.04;

          (v) Any amounts required to be deposited  pursuant to Section 3.07(c),
     3.08(b) or 3.21;

          (vi) All  amounts  transferred  from the  Certificate  Account  to the
     Custodial Account in accordance with Section 4.02(a);

          (vii) Any amounts  realized  by the  Subservicer  and  received by the
     Master Servicer in respect of any Additional Collateral; and

          (viii)  Any  amounts  received  by the Master  Servicer  in respect of
     Pledged Assets.

     The foregoing  requirements  for deposit in the Custodial  Account shall be
exclusive,  it being understood and agreed that, without limiting the generality
of the foregoing, payments on the Mortgage Loans which are not part of the Trust
Fund  (consisting  of  payments  in respect of  principal  and  interest  on the
Mortgage Loans due on or before the Cut-off Date) and payments or collections in
the nature of prepayment  charges or late payment charges or assumption fees may
but need not be deposited by the Master  Servicer in the Custodial  Account.  In
the event any amount not required to be deposited in the Custodial Account is so
deposited,  the Master  Servicer may at any time  withdraw  such amount from the
Custodial  Account,  any provision herein to the contrary  notwithstanding.  The
Custodial  Account  may  contain  funds that  belong to one or more trust  funds
created  for  mortgage  pass-through  certificates  of other  Series but may not
contain  funds  relating to mortgage  loans that are not  included in such trust
funds. Notwithstanding such commingling of funds, the Master Servicer shall keep
records that  accurately  reflect the funds on deposit in the Custodial  Account
that have been identified by it as being attributable to the Mortgage Loans.

                                      -53-
<PAGE>

     With respect to Insurance Proceeds,  Liquidation Proceeds, REO Proceeds and
the  proceeds of the purchase of any Mortgage  Loan  pursuant to Sections  2.02,
2.03,  2.04 and 4.07  received in any calendar  month,  the Master  Servicer may
elect to treat such amounts as included in the Available Distribution Amount for
the Distribution Date in the month of receipt, but is not obligated to do so. If
the Master Servicer so elects, such amounts will be deemed to have been received
(and any related Realized Loss shall be deemed to have occurred) on the last day
of the month prior to the receipt thereof.

     (c) The Master Servicer shall use its best efforts to cause the institution
maintaining the Custodial  Account to invest the funds in the Custodial  Account
attributable to the Mortgage Loans in Permitted  Investments  which shall mature
not later than the  Certificate  Account Deposit Date next following the date of
such investment (with the exception of the Amount Held for Future  Distribution)
and which shall not be sold or disposed of prior to their maturities. All income
and gain  realized  from any such  investment  shall be for the  benefit  of the
Master Servicer as additional servicing compensation and shall be subject to its
withdrawal  or order from time to time.  The amount of any  losses  incurred  in
respect of any such  investments  attributable  to the  investment of amounts in
respect of the Mortgage Loans shall be deposited in the Custodial Account by the
Master Servicer out of its own funds  immediately as realized  without any right
of reimbursement.

     (d) The Master Servicer shall give notice to the Trustee and the Company of
any change in the  location of the  Custodial  Account  and the  location of the
Certificate Account prior to the use thereof.

     Section 3.08   Subservicing Accounts; Servicing Accounts

     (a) In those  cases  where a  Subservicer  is  servicing  a  Mortgage  Loan
pursuant  to a  Subservicing  Agreement,  the Master  Servicer  shall  cause the
Subservicer,  pursuant to the Subservicing  Agreement, to establish and maintain
one or more Subservicing Accounts which shall be an Eligible Account or, if such
account is not an Eligible Account,  shall generally satisfy the requirements of
the Program Guide and be otherwise  acceptable  to the Master  Servicer and each
Rating  Agency.  The  Subservicer  will be required  thereby to deposit into the
Subservicing  Account on a daily basis , or with respect to the Mortgage  Loans,
subserviced by Wells Fargo, if any, within two (2) Business Days of receipt, all
proceeds of Mortgage Loans received by the  Subservicer,  less its  Subservicing
Fees and  unreimbursed  advances and  expenses,  to the extent  permitted by the
Subservicing  Agreement. If the Subservicing Account is not an Eligible Account,
the Master  Servicer  shall be deemed to have  received such monies upon receipt
thereof by the Subservicer.  The Subservicer shall not be required to deposit in
the  Subservicing  Account  payments or  collections in the nature of prepayment
charges or late charges or assumption  fees. On or before the date  specified in
the Program Guide, but in no event later than the Determination Date, the Master
Servicer shall cause the Subservicer, pursuant to the Subservicing Agreement, to
remit to the Master Servicer for deposit in the Custodial Account all funds held
in the Subservicing  Account with respect to each Mortgage Loan serviced by such
Subservicer  that are  required  to be  remitted  to the  Master  Servicer.  The
Subservicer will also be required,  pursuant to the Subservicing  Agreement,  to
advance on such  scheduled  date of  remittance  amounts  equal to any scheduled
monthly installments of principal and interest less its Subservicing Fees on any
Mortgage  Loans for which  payment  was not  received by the

                                      -54-
<PAGE>

Subservicer.  This obligation to advance with respect to each Mortgage Loan will
continue up to and including the first of the month  following the date on which
the related  Mortgaged  Property is sold at a foreclosure sale or is acquired by
the Trust Fund by deed in lieu of  foreclosure  or otherwise.  All such advances
received  by the  Master  Servicer  shall  be  deposited  promptly  by it in the
Custodial Account.

     (b) The  Subservicer  may also be  required,  pursuant to the  Subservicing
Agreement,  to remit to the Master Servicer for deposit in the Custodial Account
interest at the Adjusted  Mortgage  Rate (or Modified Net Mortgage Rate plus the
rate per annum at which the  Servicing  Fee  accrues  in the case of a  Modified
Mortgage Loan) on any Curtailment  received by such  Subservicer in respect of a
Mortgage Loan from the related  Mortgagor during any month that is to be applied
by the  Subservicer  to reduce  the  unpaid  principal  balance  of the  related
Mortgage Loan as of the first day of such month, from the date of application of
such Curtailment to the first day of the following month.

     (c) In addition to the Custodial Account and the Certificate  Account,  the
Master Servicer shall for any Nonsubserviced  Mortgage Loan, and shall cause the
Subservicers  for Subserviced  Mortgage Loans to,  establish and maintain one or
more Servicing  Accounts and deposit and retain therein all collections from the
Mortgagors   (or  advances  from   Subservicers)   for  the  payment  of  taxes,
assessments,  hazard insurance premiums,  Primary Insurance Policy premiums,  if
applicable,  or  comparable  items  for  the  account  of the  Mortgagors.  Each
Servicing Account shall satisfy the requirements for a Subservicing Account and,
to the extent  permitted by the Program  Guide or as is otherwise  acceptable to
the Master Servicer, may also function as a Subservicing Account. Withdrawals of
amounts  related to the Mortgage  Loans from the Servicing  Accounts may be made
only to effect timely payment of taxes, assessments,  hazard insurance premiums,
Primary  Insurance  Policy  premiums,  if applicable,  or comparable  items,  to
reimburse the Master Servicer or Subservicer out of related  collections for any
payments made  pursuant to Sections 3.11 (with respect to the Primary  Insurance
Policy)  and  3.12(a)  (with  respect  to  hazard  insurance),  to refund to any
Mortgagors  any sums as may be  determined to be overages,  to pay interest,  if
required,  to Mortgagors  on balances in the  Servicing  Account or to clear and
terminate  the  Servicing  Account  at the  termination  of  this  Agreement  in
accordance with Section 9.01 or in accordance with the Program Guide. As part of
its servicing  duties,  the Master Servicer shall,  and the  Subservicers  will,
pursuant to the  Subservicing  Agreements,  be required to pay to the Mortgagors
interest on funds in this account to the extent required by law.

     (d) The Master  Servicer  shall  advance  the  payments  referred to in the
preceding  subSection  that are not timely paid by the Mortgagors or advanced by
the  Subservicers on the date when the tax, premium or other cost for which such
payment is  intended  is due,  but the Master  Servicer  shall be required so to
advance only to the extent that such advances, in the good faith judgment of the
Master  Servicer,  will be recoverable  by the Master  Servicer out of Insurance
Proceeds, Liquidation Proceeds or otherwise.

                                      -55-
<PAGE>

     Section 3.09   Access to Certain  Documentation and Information Regarding
the Mortgage Loans

     If compliance  with this Section 3.09 shall make any Class of  Certificates
legal for investment by federally  insured  savings and loan  associations,  the
Master  Servicer shall provide,  or cause the  Subservicers  to provide,  to the
Trustee, the Office of Thrift Supervision or the FDIC and the supervisory agents
and examiners thereof access to the  documentation  regarding the Mortgage Loans
required by applicable  regulations  of the Office of Thrift  Supervision,  such
access being afforded without charge but only upon reasonable request and during
normal  business  hours at the offices  designated by the Master  Servicer.  The
Master  Servicer  shall  permit  such  representatives  to  photocopy  any  such
documentation  and  shall  provide  equipment  for  that  purpose  at  a  charge
reasonably approximating the cost of such photocopying to the Master Servicer.

     Section 3.10   Permitted Withdrawals from the Custodial Account

     (a) The Master  Servicer  may, from time to time as provided  herein,  make
withdrawals from the Custodial Account of amounts on deposit therein pursuant to
Section  3.07 that are  attributable  to the  Mortgage  Loans for the  following
purposes:

          (i) to make deposits into the  Certificate  Account in the amounts and
     in the manner provided for in Section 4.01;

          (ii) to reimburse  itself or the related  Subservicer  for  previously
     unreimbursed  Advances,  Servicing Advances or other expenses made pursuant
     to Sections 3.01, 3.07(a),  3.08, 3.11, 3.12(a), 3.14 and 4.04 or otherwise
     reimbursable pursuant to the terms of this Agreement, such withdrawal right
     being limited to amounts received on the related Mortgage Loans (including,
     for this purpose,  REO Proceeds,  Insurance Proceeds,  Liquidation Proceeds
     and proceeds from the purchase of a Mortgage Loan pursuant to Section 2.02,
     2.03,  2.04, 4.07 or 9.01) which represent (A) Late  Collections of Monthly
     Payments  for which any such  advance  was made in the case of  Subservicer
     Advances or Advances pursuant to Section 4.04 and (B) recoveries of amounts
     in  respect  of which  such  advances  were  made in the case of  Servicing
     Advances;

          (iii) to pay to itself or the related  Subservicer  (if not previously
     retained by such  Subservicer)  out of each payment  received by the Master
     Servicer  on account of  interest  on a Mortgage  Loan as  contemplated  by
     Sections  3.14 and 3.16, an amount equal to that  remaining  portion of any
     such payment as to interest (but not in excess of the Servicing Fee and the
     Subservicing Fee, if not previously  retained) which,  when deducted,  will
     result in the remaining  amount of such interest  being interest at the Net
     Mortgage  Rate (or  Modified  Net  Mortgage  Rate in the case of a Modified
     Mortgage Loan) on the amount specified in the amortization  schedule of the
     related Mortgage Loan as the principal  balance thereof at the beginning of
     the period  respecting  which such interest was paid after giving effect to
     any previous Curtailments;

                                      -56-
<PAGE>

          (iv)  to  pay to  itself  as  additional  servicing  compensation  any
     interest or investment income earned on funds and other property  deposited
     in or credited  to the  Custodial  Account  that it is entitled to withdraw
     pursuant to Section 3.07(c);

          (v)  to  pay  to  itself  as  additional  servicing  compensation  any
     Foreclosure  Profits and any amounts paid by a Mortgagor in connection with
     a Principal Prepayment in Full in respect of interest for any period during
     the  calendar  month in which such  Principal  Prepayment  in Full is to be
     distributed to the Certificateholders;

          (vi) to pay to itself, a Subservicer,  a Seller,  Residential Funding,
     the  Company  or any other  appropriate  Person,  as the case may be,  with
     respect to each Mortgage Loan or property  acquired in respect thereof that
     has been purchased or otherwise transferred pursuant to Section 2.02, 2.03,
     2.04,  4.07 or 9.01,  all amounts  received  thereon and not required to be
     distributed to the  Certificateholders  as of the date on which the related
     Stated Principal Balance or Purchase Price is determined;

          (vii)  to  reimburse  itself  or  the  related   Subservicer  for  any
     Nonrecoverable Advance or Advances in the manner and to the extent provided
     in  subSection  (c) below,  and any Advance or  Servicing  Advance  made in
     connection  with a modified  Mortgage  Loan that is in  default  or, in the
     judgment of the Master Servicer, default is reasonably foreseeable pursuant
     to Section  3.07(a),  to the extent the amount of the Advance or  Servicing
     Advance was added to the Stated Principal Balance of the Mortgage Loan in a
     prior calendar  month,  or any Advance  reimbursable to the Master Servicer
     pursuant to Section 4.02(a);

          (viii) to reimburse itself or the Company for expenses incurred by and
     reimbursable to it or the Company pursuant to Sections 3.01(a), 3.11, 3.13,
     3.14(c),  6.03,  10.01 or otherwise,  or in connection with  enforcing,  in
     accordance   with  this   Agreement,   any   repurchase,   substitution  or
     indemnification  obligation  of any Seller  (other than an Affiliate of the
     Company) pursuant to the related Seller's Agreement;

          (ix) to reimburse  itself for  Servicing  Advances  expended by it (a)
     pursuant to Section 3.14 in good faith in connection  with the  restoration
     of property  damaged by an Uninsured  Cause, and (b) in connection with the
     liquidation  of a Mortgage  Loan or  disposition  of an REO Property to the
     extent not  otherwise  reimbursed  pursuant to clause (ii) or (viii) above;
     and

          (x) to withdraw any amount deposited in the Custodial Account that was
     not required to be deposited therein pursuant to Section 3.07; and

          (xi) to reimburse or pay any  Subservicer  any such amounts as are due
     thereto  under  the  applicable  Subservicing  Agreement  and have not been
     retained  by or paid to the  Subservicer,  to the  extent  provided  in the
     related Subservicing Agreement.

                                      -57-
<PAGE>

     (b) Since, in connection with withdrawals  pursuant to clauses (ii), (iii),
(v)  and  (vi),  the  Master  Servicer's   entitlement  thereto  is  limited  to
collections  or other  recoveries  on the  related  Mortgage  Loan,  the  Master
Servicer  shall keep and maintain  separate  accounting,  on a Mortgage  Loan by
Mortgage  Loan basis,  for the purpose of  justifying  any  withdrawal  from the
Custodial Account pursuant to such clauses.

     (c) The  Master  Servicer  shall be  entitled  to  reimburse  itself or the
related  Subservicer for any advance made in respect of a Mortgage Loan that the
Master Servicer determines to be a Nonrecoverable Advance by withdrawal from the
Custodial  Account of amounts on deposit  therein  attributable  to the Mortgage
Loans  on any  Certificate  Account  Deposit  Date  succeeding  the date of such
determination.  Such  right of  reimbursement  in  respect  of a  Nonrecoverable
Advance  relating to an Advance pursuant to Section 4.04 on any such Certificate
Account  Deposit Date shall be limited to an amount not exceeding the portion of
such  advance  previously  paid  to  Certificateholders   (and  not  theretofore
reimbursed to the Master Servicer or the related Subservicer).

     Section 3.11   Maintenance of the Primary Insurance  Policies;  Collections
Thereunder

     (a) The Master  Servicer shall not take, or permit any Subservicer to take,
any action  which would  result in  non-coverage  under any  applicable  Primary
Insurance  Policy of any loss which,  but for the actions of the Master Servicer
or Subservicer,  would have been covered  thereunder.  To the extent coverage is
available,  the Master Servicer shall keep or cause to be kept in full force and
effect each such Primary  Insurance  Policy until the  principal  balance of the
related Mortgage Loan secured by a Mortgaged  Property is reduced to 80% or less
of  the  Appraised  Value  in  the  case  of  such  a  Mortgage  Loan  having  a
Loan-to-Value  Ratio at origination in excess of 80%, provided that such Primary
Insurance  Policy  was in  place as of the  Cut-off  Date  and the  Company  had
knowledge  of such  Primary  Insurance  Policy.  The  Master  Servicer  shall be
entitled to cancel or permit the discontinuation of any Primary Insurance Policy
as to any Mortgage Loan, if the Stated Principal Balance of the Mortgage Loan is
reduced  below an  amount  equal to 80% of the  appraised  value of the  related
Mortgaged  Property as  determined  in any  appraisal  thereof after the Closing
Date,  or if the  Loan-to-Value  Ratio  is  reduced  below  80% as a  result  of
principal  payments on the Mortgage  Loan after the Closing  Date.  In the event
that the Company  gains  knowledge  that as of the Closing Date, a Mortgage Loan
had a Loan-to-Value Ratio at origination in excess of 80% and is not the subject
of a Primary  Insurance  Policy (and was not  included in any  exception  to the
representation in Section 2.03(b)(iv)) and that such Mortgage Loan has a current
Loan-to-Value  Ratio in excess  of 80% then the  Master  Servicer  shall use its
reasonable  efforts to obtain and  maintain  a Primary  Insurance  Policy to the
extent  that such a policy is  obtainable  at a  reasonable  price.  The  Master
Servicer shall not cancel or refuse to renew any such Primary  Insurance  Policy
applicable to a  Nonsubserviced  Mortgage  Loan,  or consent to any  Subservicer
canceling or refusing to renew any such Primary Insurance Policy applicable to a
Mortgage  Loan  subserviced  by it, that is in effect at the date of the initial
issuance  of the  Certificates  and is  required  to be kept in force  hereunder
unless the replacement Primary Insurance Policy for such canceled or non-renewed
policy is maintained with an insurer whose  claims-paying  ability is acceptable
to each Rating  Agency for mortgage  pass-through  certificates  having a rating
equal to or better  than the  lower of the  then-current  rating  or the  rating
assigned to the Certificates as of the Closing Date by such Rating Agency.

                                      -58-
<PAGE>

     (b) In connection with its activities as administrator  and servicer of the
Mortgage  Loans,  the Master  Servicer agrees to present or to cause the related
Subservicer to present,  on behalf of the Master Servicer,  the Subservicer,  if
any, the Trustee and Certificateholders, claims to the related Insurer under any
Primary Insurance Policies, in a timely manner in accordance with such policies,
and,  in this  regard,  to take or cause to be taken such  reasonable  action as
shall be  necessary  to permit  recovery  under any Primary  Insurance  Policies
respecting  defaulted  Mortgage  Loans.  Pursuant to Section 3.07, any Insurance
Proceeds  collected  by or  remitted  to the Master  Servicer  under any Primary
Insurance  Policies  shall be deposited  in the  Custodial  Account,  subject to
withdrawal pursuant to Section 3.10.

     Section 3.12   Maintenance of Fire  Insurance  and  Omissions  and Fidelity
Coverage

     (a) The Master Servicer shall cause to be maintained for each Mortgage Loan
(other than a Cooperative  Loan) fire  insurance  with  extended  coverage in an
amount  which is equal to the  lesser  of the  principal  balance  owing on such
Mortgage  Loan  or 100  percent  of the  insurable  value  of the  improvements;
PROVIDED,  HOWEVER,  that such coverage may not be less than the minimum  amount
required to fully compensate for any loss or damage on a replacement cost basis.
To the extent it may do so without breaching the related Subservicing Agreement,
the Master  Servicer  shall  replace  any  Subservicer  that does not cause such
insurance, to the extent it is available, to be maintained.  The Master Servicer
shall also cause to be maintained on property acquired upon foreclosure, or deed
in lieu of  foreclosure,  of any Mortgage Loan (other than a Cooperative  Loan),
fire  insurance  with extended  coverage in an amount which is at least equal to
the  amount  necessary  to avoid  the  application  of any  co-insurance  clause
contained in the related hazard insurance policy.  Pursuant to Section 3.07, any
amounts  collected by the Master  Servicer  under any such policies  (other than
amounts to be  applied to the  restoration  or repair of the  related  Mortgaged
Property  or property  thus  acquired or amounts  released to the  Mortgagor  in
accordance with the Master  Servicer's  normal  servicing  procedures)  shall be
deposited in the Custodial  Account,  subject to withdrawal  pursuant to Section
3.10. Any cost incurred by the Master Servicer in maintaining any such insurance
shall  not,  for  the  purpose  of  calculating  monthly  distributions  to  the
Certificateholders,  be added to the  amount  owing  under  the  Mortgage  Loan,
notwithstanding  that the terms of the Mortgage Loan so permit. Such costs shall
be  recoverable  by the Master  Servicer  out of related  late  payments  by the
Mortgagor or out of Insurance  Proceeds and  Liquidation  Proceeds to the extent
permitted by Section  3.10.  It is  understood  and agreed that no earthquake or
other  additional  insurance is to be required of any Mortgagor or maintained on
property  acquired  in respect of a Mortgage  Loan other than  pursuant  to such
applicable  laws and  regulations  as shall at any time be in force and as shall
require such additional insurance. Whenever the improvements securing a Mortgage
Loan (other than a Cooperative  Loan) are located at the time of  origination of
such Mortgage  Loan in a federally  designated  special  flood hazard area,  the
Master  Servicer  shall cause flood  insurance  (to the extent  available) to be
maintained in respect thereof.  Such flood insurance shall be in an amount equal
to the lesser of (i) the amount required to compensate for any loss or damage to
the Mortgaged  Property on a replacement  cost basis and (ii) the maximum amount
of such  insurance  available  for the  related  Mortgaged  Property  under  the
national flood insurance program (assuming that the area in which such Mortgaged
Property is located is participating in such program).

                                      -59-
<PAGE>

     If the Master  Servicer  shall obtain and maintain a blanket fire insurance
policy with  extended  coverage  insuring  against  hazard  losses on all of the
Mortgage  Loans,  it  shall   conclusively  be  deemed  to  have  satisfied  its
obligations as set forth in the first sentence of this Section 3.12(a), it being
understood and agreed that such policy may contain a deductible clause, in which
case the Master  Servicer  shall,  in the event  that there  shall not have been
maintained on the related  Mortgaged  Property a policy complying with the first
sentence  of this  Section  3.12(a) and there shall have been a loss which would
have been covered by such policy,  deposit in the Certificate Account the amount
not  otherwise  payable  under the  blanket  policy  because of such  deductible
clause. Any such deposit by the Master Servicer shall be made on the Certificate
Account  Deposit Date next preceding the  Distribution  Date which occurs in the
month  following  the month in which  payments  under any such policy would have
been deposited in the Custodial  Account.  In connection  with its activities as
administrator  and servicer of the Mortgage Loans, the Master Servicer agrees to
present,  on behalf of itself,  the Trustee and the  Certificateholders,  claims
under any such blanket policy.

The Master  Servicer  shall  obtain and  maintain at its own expense and keep in
full force and effect  throughout the term of this Agreement a blanket  fidelity
bond and an errors and omissions insurance policy covering the Master Servicer's
officers and employees and other persons acting on behalf of the Master Servicer
in connection with its activities  under this Agreement.  The amount of coverage
shall be at least equal to the coverage  that would be required by Fannie Mae or
Freddie Mac,  whichever is greater,  with respect to the Master  Servicer if the
Master Servicer were servicing and  administering  the Mortgage Loans for Fannie
Mae or Freddie  Mac.  In the event that any such bond or policy  ceases to be in
effect, the Master Servicer shall obtain a comparable replacement bond or policy
from an issuer or insurer, as the case may be, meeting the requirements, if any,
of the  Program  Guide and  acceptable  to the  Company.  Coverage of the Master
Servicer under a policy or bond obtained by an Affiliate of the Master  Servicer
and  providing the coverage  required by this Section  3.12(b) shall satisfy the
requirements of this Section 3.12(b).

     Section  3.13   Enforcement   of   Due-on-Sale   Clauses;   Assumption  and
Modification Agreements; Certain Assignments

     (a) When any Mortgaged  Property is conveyed by the  Mortgagor,  the Master
Servicer or  Subservicer,  to the extent it has  knowledge  of such  conveyance,
shall enforce any due-on-sale clause contained in any Mortgage Note or Mortgage,
to the extent permitted under applicable law and governmental  regulations,  but
only to the extent that such enforcement will not adversely affect or jeopardize
coverage under any Required Insurance Policy. Notwithstanding the foregoing:

          (i) the Master  Servicer  shall not be deemed to be in  default  under
     this  Section  3.13(a) by reason of any  transfer or  assumption  which the
     Master Servicer is restricted by law from preventing; and

                                      -60-
<PAGE>

          (ii) if the Master Servicer  determines  that it is reasonably  likely
     that any Mortgagor will bring, or if any Mortgagor does bring, legal action
     to declare invalid or otherwise avoid  enforcement of a due-on-sale  clause
     contained in any Mortgage Note or Mortgage,  the Master  Servicer shall not
     be required to enforce the due-on-sale clause or to contest such action.

     (b) Subject to the Master Servicer's duty to enforce any due-on-sale clause
to the  extent set forth in Section  3.13(a),  in any case in which a  Mortgaged
Property  is to be conveyed  to a Person by a  Mortgagor,  and such Person is to
enter into an assumption or modification agreement or supplement to the Mortgage
Note  or  Mortgage  which  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 Master Servicer is authorized,  subject
to the requirements of the sentence next following,  to execute and deliver,  on
behalf of the  Trustee,  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;  PROVIDED,  HOWEVER,  none of
such terms and requirements  shall either (i) both (A) constitute a "significant
modification"  effecting an exchange or  reissuance  of such Mortgage Loan under
the REMIC  Provisions  and (B) cause any portion of any REMIC  formed  under the
Series  Supplement  to fail to qualify as a REMIC  under the Code or (subject to
Section  10.01(f)),   result  in  the  imposition  of  any  tax  on  "prohibited
transactions" or (ii) constitute  "contributions"  after the start-up date under
the REMIC  Provisions.  The Master  Servicer  shall  execute  and  deliver  such
documents only if it reasonably  determines  that (i) its execution and delivery
thereof will not conflict  with or violate any terms of this  Agreement or cause
the unpaid  balance and interest on the  Mortgage  Loan to be  uncollectible  in
whole or in part,  (ii) any  required  consents of insurers  under any  Required
Insurance Policies have been obtained and (iii) subsequent to the closing of the
transaction  involving  the  assumption  or transfer (A) the Mortgage  Loan will
continue  to be secured by a first  mortgage  lien  pursuant to the terms of the
Mortgage,  (B) such transaction will not adversely affect the coverage under any
Required Insurance Policies,  (C) the Mortgage Loan will fully amortize over the
remaining term thereof, (D) no material term of the Mortgage Loan (including the
interest  rate on the  Mortgage  Loan) will be altered  nor will the term of the
Mortgage  Loan be  changed  and (E) if the  seller/transferor  of the  Mortgaged
Property is to be released  from  liability on the Mortgage  Loan,  such release
will  not  (based  on  the  Master   Servicer's  or  Subservicer's   good  faith
determination)  adversely affect the  collectability  of the Mortgage Loan. Upon
receipt of appropriate  instructions from the Master Servicer in accordance with
the  foregoing,  the Trustee shall execute any  necessary  instruments  for such
assumption  or  substitution  of  liability as directed in writing by the Master
Servicer.  Upon the closing of the transactions  contemplated by such documents,
the Master  Servicer shall cause the originals or true and correct copies of the
assumption agreement, the release (if any), or the modification or supplement to
the Mortgage  Note or Mortgage to be  delivered to the Trustee or the  Custodian
and deposited  with the Mortgage File for such Mortgage  Loan. Any fee collected
by the  Master  Servicer  or  such  related  Subservicer  for  entering  into an
assumption or substitution of liability agreement will be retained by the Master
Servicer or such Subservicer as additional servicing compensation.

                                      -61-
<PAGE>

     (c) The Master  Servicer  or the related  Subservicer,  as the case may be,
shall be entitled to approve a request from a Mortgagor for a partial release of
the related Mortgaged Property,  the granting of an easement thereon in favor of
another Person,  any alteration or demolition of the related Mortgaged  Property
(or,  with respect to a Cooperative  Loan,  the related  Cooperative  Apartment)
without  any  right  of  reimbursement  or  other  similar  matters  if  it  has
determined, exercising its good faith business judgment in the same manner as it
would if it were the owner of the related  Mortgage Loan, that the security for,
and the timely  and full  collectability  of,  such  Mortgage  Loan would not be
adversely  affected  thereby and that any portion of any REMIC  formed under the
Series  Supplement  would not fail to  continue  to qualify as a REMIC under the
Code as a result  thereof  and  (subject  to  Section  10.01(f))  that no tax on
"prohibited  transactions"  or  "contributions"  after the  startup day would be
imposed on any such REMIC as a result  thereof.  Any fee collected by the Master
Servicer  or the  related  Subservicer  for  processing  such a request  will be
retained by the Master  Servicer or such  Subservicer  as  additional  servicing
compensation.

     (d) Subject to any other applicable terms and conditions of this Agreement,
the Trustee and Master  Servicer  shall be entitled to approve an  assignment in
lieu of  satisfaction  with respect to any Mortgage  Loan,  provided the obligee
with respect to such Mortgage Loan following such proposed  assignment  provides
the Trustee and Master Servicer with a "Lender  Certification  for Assignment of
Mortgage  Loan" in the form attached  hereto as Exhibit M, in form and substance
satisfactory to the Trustee and Master  Servicer,  providing the following:  (i)
that the substance of the assignment is, and is intended to be, a refinancing of
such  Mortgage;  (ii) that the Mortgage Loan  following the proposed  assignment
will have a rate of  interest at least 0.25  percent  below or above the rate of
interest on such Mortgage Loan prior to such proposed assignment; and (iii) that
such  assignment  is at the request of the borrower  under the related  Mortgage
Loan. Upon approval of an assignment in lieu of satisfaction with respect to any
Mortgage Loan, the Master  Servicer shall receive cash in an amount equal to the
unpaid  principal  balance of and accrued interest on such Mortgage Loan and the
Master  Servicer shall treat such amount as a Principal  Prepayment in Full with
respect to such Mortgage Loan for all purposes hereof.

     Section 3.14   Realization Upon Defaulted Mortgage Loans

     (a) The  Master  Servicer  shall  foreclose  upon or  otherwise  comparably
convert  (which may include an REO  Acquisition)  the  ownership  of  properties
securing such of the Mortgage  Loans as come into and continue in default and as
to which no satisfactory  arrangements  can be made for collection of delinquent
payments pursuant to Section 3.07.  Alternatively,  the Master Servicer may take
other  actions in respect of a defaulted  Mortgage  Loan,  which may include (i)
accepting  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 permitting 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 a
sale of the Mortgaged  Property),  (ii)  arranging for a repayment plan or (iii)
agreeing to a modification  in accordance  with Section 3.07. In connection with
such  foreclosure  or other  conversion or action,  the Master  Servicer  shall,
consistent  with Section 3.11,  follow such practices and procedures as it shall
deem  necessary  or  advisable,  as shall be  normal  and  usual in its  general
mortgage  servicing  activities  and as shall be  required or  permitted  by the
Program

                                      -62-
<PAGE>

Guide,  as applicable;  provided that the Master Servicer shall not be liable in
any respect  hereunder if the Master  Servicer is acting in connection  with any
such  foreclosure  or other  conversion in a manner that is consistent  with the
provisions  of this  Agreement.  The  Master  Servicer,  however,  shall  not be
required  to  expend  its own  funds  or incur  other  reimbursable  charges  in
connection  with  any  foreclosure,   or  attempted  foreclosure  which  is  not
completed,  or towards the restoration of any property unless it shall determine
(i) that such  restoration  and/or  foreclosure  will  increase  the proceeds of
liquidation  of the  Mortgage  Loan to  Holders of  Certificates  of one or more
Classes after reimbursement to itself for such expenses or charges and (ii) that
such expenses or charges will be recoverable to it through Liquidation Proceeds,
Insurance Proceeds, or REO Proceeds (respecting which it shall have priority for
purposes of  withdrawals  from the Custodial  Account  pursuant to Section 3.10,
whether or not such expenses and charges are actually  recoverable  from related
Liquidation Proceeds,  Insurance Proceeds or REO Proceeds). In the event of such
a determination  by the Master Servicer  pursuant to this Section  3.14(a),  the
Master Servicer shall be entitled to  reimbursement  of such amounts pursuant to
Section 3.10.

     In  addition  to the  foregoing,  the  Master  Servicer  shall use its best
reasonable  efforts to realize upon any  Additional  Collateral  for such of the
Additional Collateral Loans as come into and continue in default and as to which
no satisfactory  arrangements can be made for collection of delinquent  payments
pursuant to Section 3.07; PROVIDED that the Master Servicer shall not, on behalf
of the Trustee, obtain title to any such Additional Collateral as a result of or
in lieu of the disposition  thereof or otherwise;  and PROVIDED further that (i)
the Master Servicer shall not proceed with respect to such Additional Collateral
in any manner  that would  impair the  ability to recover  against  the  related
Mortgaged  Property,  and (ii) the Master  Servicer  shall  proceed with any REO
Acquisition in a manner that preserves the ability to apply the proceeds of such
Additional  Collateral  against amounts owed under the defaulted  Mortgage Loan.
Any proceeds realized from such Additional  Collateral (other than amounts to be
released to the Mortgagor or the related guarantor in accordance with procedures
that the  Master  Servicer  would  follow in  servicing  loans  held for its own
account,  subject  to the terms  and  conditions  of the  related  Mortgage  and
Mortgage  Note  and to the  terms  and  conditions  of any  security  agreement,
guarantee  agreement,  mortgage or other agreement  governing the disposition of
the proceeds of such Additional  Collateral) shall be deposited in the Custodial
Account,  subject to  withdrawal  pursuant to Section  3.10.  Any other  payment
received by the Master Servicer in respect of such Additional  Collateral  shall
be deposited in the Custodial Account subject to withdrawal  pursuant to Section
3.10.

     For so long as the Master  Servicer is the Master Servicer under the Credit
Support Pledge  Agreement and any of the Mortgage Loans and Pledged Asset Loans,
the Master  Servicer  shall  perform its  obligations  under the Credit  Support
Pledge  Agreement in accordance  with such  agreement and in a manner that is in
the best interests of the Certificateholders. Further, the Master Servicer shall
use its best  reasonable  efforts to realize upon any Pledged Assets for such of
the Pledged  Asset Loans as come into and continue in default and as to which no
satisfactory  arrangements  can be made for  collection of  delinquent  payments
pursuant to Section 3.07; provided that the Master Servicer shall not, on behalf
of the Trustee,  obtain  title to any such  Pledged  Assets as a result of or in
lieu of the disposition thereof or otherwise;  and provided further that (i) the
Master  Servicer  shall not proceed with  respect to such Pledged  Assets in any
manner that would  impair the ability to recover  against the related  Mortgaged
Property, and

                                      -63-
<PAGE>

(ii) the Master Servicer shall proceed with any REO Acquisition in a manner that
preserves  the ability to apply the  proceeds  of such  Pledged  Assets  against
amounts owed under the defaulted  Mortgage Loan. Any proceeds realized from such
Pledged  Assets  (other  than  amounts to be released  to the  Mortgagor  or the
related  guarantor in accordance  with procedures that the Master Servicer would
follow in  servicing  loans held for its own  account,  subject to the terms and
conditions  of the  related  Mortgage  and  Mortgage  Note and to the  terms and
conditions of any security  agreement,  guarantee  agreement,  mortgage or other
agreement  governing  the  disposition  of the proceeds of such Pledged  Assets)
shall be deposited in the Custodial Account,  subject to withdrawal  pursuant to
Section 3.10.  Any other payment  received by the Master  Servicer in respect of
such  Pledged  Assets shall be deposited  in the  Custodial  Account  subject to
withdrawal pursuant to Section 3.10.

     Concurrently  with the  foregoing,  the  Master  Servicer  may  pursue  any
remedies that may be available in connection  with a breach of a  representation
and warranty with respect to any such Mortgage Loan in accordance  with Sections
2.03 and 2.04.  However,  the Master  Servicer  is not  required  to continue to
pursue both foreclosure (or similar remedies) with respect to the Mortgage Loans
and remedies in connection with a breach of a representation and warranty if the
Master Servicer determines in its reasonable  discretion that one such remedy is
more likely to result in a greater  recovery as to the Mortgage  Loan.  Upon the
occurrence of a Cash  Liquidation or REO  Disposition,  following the deposit in
the Custodial Account of all Insurance Proceeds,  Liquidation Proceeds and other
payments and recoveries  referred to in the definition of "Cash  Liquidation" or
"REO  Disposition,"  as  applicable,  upon  receipt  by the  Trustee  of written
notification of such deposit signed by a Servicing  Officer,  the Trustee or any
Custodian,  as the case may be, shall release to the Master Servicer the related
Custodial  File and the Trustee  shall execute and deliver such  instruments  of
transfer or  assignment  prepared by the Master  Servicer,  in each case without
recourse,  as shall be necessary to vest in the Master Servicer or its designee,
as the case may be, the related Mortgage Loan, and thereafter such Mortgage Loan
shall not be part of the Trust Fund.  Notwithstanding the foregoing or any other
provision of this  Agreement,  in the Master  Servicer's  sole  discretion  with
respect  to any  defaulted  Mortgage  Loan or REO  Property  as to either of the
following provisions, (i) a Cash Liquidation or REO Disposition may be deemed to
have occurred if substantially all amounts expected by the Master Servicer to be
received in connection with the related defaulted  Mortgage Loan or REO Property
have been  received,  and (ii) for  purposes  of  determining  the amount of any
Liquidation Proceeds,  Insurance Proceeds, REO Proceeds or any other unscheduled
collections  or the amount of any Realized  Loss,  the Master  Servicer may take
into account minimal amounts of additional  receipts  expected to be received or
any  estimated  additional  liquidation  expenses  expected  to be  incurred  in
connection with the related defaulted Mortgage Loan or REO Property.

     (b) If title to any Mortgaged  Property is acquired by the Trust Fund as an
REO  Property  by  foreclosure  or by deed in lieu of  foreclosure,  the deed or
certificate  of sale shall be issued to the  Trustee or to its nominee on behalf
of  Certificateholders.  Notwithstanding  any  such  acquisition  of  title  and
cancellation  of the related  Mortgage Loan,  such REO Property shall (except as
otherwise expressly provided herein) be considered to be an Outstanding Mortgage
Loan held in the Trust Fund until such time as the REO  Property  shall be sold.
Consistent with the foregoing for purposes of all calculations hereunder so long
as such REO Property shall be considered to be an  Outstanding  Mortgage Loan it
shall be assumed that,  notwithstanding  that the indebtedness  evidenced by the
related  Mortgage  Note shall have been  discharged,  such

                                      -64-
<PAGE>

Mortgage Note and the related amortization schedule in effect at the time of any
such acquisition of title (after giving effect to any previous  Curtailments and
before any adjustment  thereto by reason of any bankruptcy or similar proceeding
or any moratorium or similar waiver or grace period) remain in effect.

     (c) If the Trust Fund  acquires  any REO Property as aforesaid or otherwise
in connection with a default or imminent  default on a Mortgage Loan, the Master
Servicer on behalf of the Trust Fund shall  dispose of such REO Property as soon
as   practicable,   giving   due   consideration   to  the   interests   of  the
Certificateholders,  but in all cases  within three full years after the taxable
year of its acquisition by the Trust Fund for purposes of Section  860G(a)(8) of
the Code (or such shorter  period as may be  necessary  under  applicable  state
(including  any state in which such  property  is located)  law to maintain  the
status of any portion of any REMIC formed under the Series Supplement as a REMIC
under  applicable state law and avoid taxes resulting from such property failing
to be foreclosure property under applicable state law) or, at the expense of the
Trust Fund, request, more than 60 days before the day on which such grace period
would  otherwise  expire,  an extension  of such grace period  unless the Master
Servicer  (subject  to Section  10.01(f))  obtains for the Trustee an Opinion of
Counsel,  addressed to the Trustee and the Master  Servicer,  to the effect that
the  holding by the Trust Fund of such REO  Property  subsequent  to such period
will not  result in the  imposition  of taxes on  "prohibited  transactions"  as
defined in Section  860F of the Code or cause any REMIC  formed under the Series
Supplement to fail to qualify as a REMIC (for federal (or any  applicable  State
or  local)  income  tax  purposes)  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 Master
Servicer shall be entitled to be reimbursed  from the Custodial  Account for any
costs  incurred in  obtaining  such  Opinion of Counsel,  as provided in Section
3.10.  Notwithstanding  any other provision 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 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
Section 860G(c) of the Code,  unless the Master Servicer has agreed to indemnify
and hold  harmless  the Trust Fund with  respect to the  imposition  of any such
taxes.

     (d) The proceeds of any Cash  Liquidation,  REO  Disposition or purchase or
repurchase of any Mortgage Loan pursuant to the terms of this Agreement, as well
as any recovery (other than Subsequent  Recoveries)  resulting from a collection
of Liquidation Proceeds,  Insurance Proceeds or REO Proceeds, will be applied in
the following order of priority:  first, to reimburse the Master Servicer or the
related  Subservicer in accordance with Section  3.10(a)(ii) and, in the case of
Wells Fargo as a Subservicer,  if applicable,  to reimburse such Subservicer for
any Subservicing Fees payable therefrom;  second, to the  Certificateholders  to
the extent of accrued and unpaid  interest on the Mortgage Loan, and any related
REO Imputed  Interest,  at the Net  Mortgage  Rate (or the Modified Net Mortgage
Rate in the case of a Modified  Mortgage  Loan),  to the Due Date in the related
Due  Period  prior to the  Distribution  Date on which  such  amounts  are to be
distributed;  third, to the Certificateholders as a recovery of principal on the
Mortgage Loan (or REO Property);  fourth, to all Servicing Fees and Subservicing
Fees payable  therefrom (and the Master Servicer and the Subservicer  shall have
no claims for any  deficiencies  with respect to such fees which result from the
foregoing allocation); and fifth, to Foreclosure Profits.

                                      -65-
<PAGE>

     (e) In the  event  of a  default  on a  Mortgage  Loan one or more of whose
obligors is not a United States Person,  in connection  with any  foreclosure or
acquisition  of a deed in  lieu  of  foreclosure  (together,  "foreclosure")  in
respect of such Mortgage Loan, the Master  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 such
Mortgage Loan.

     Section 3.15   Trustee to Cooperate; Release of Custodial Files

     (a) Upon  becoming  aware of the payment in full of any Mortgage  Loan,  or
upon the receipt by the Master  Servicer of a notification  that payment in full
will be escrowed in a manner  customary for such purposes,  the Master  Servicer
will immediately  notify the Trustee (if it holds the related Custodial File) or
the Custodian by a  certification  of a Servicing  Officer (which  certification
shall  include a  statement  to the effect  that all  amounts  received or to be
received in  connection  with such payment which are required to be deposited in
the  Custodial  Account  pursuant  to  Section  3.07  have  been  or  will be so
deposited),  substantially in one of the forms attached hereto as Exhibit F, or,
in the case of the Custodian,  an electronic request in a form acceptable to the
Custodian,  requesting delivery to it of the Custodial File. Within two Business
Days of receipt of such certification and request, the Trustee shall release, or
cause the  Custodian  to  release,  the  related  Custodial  File to the  Master
Servicer.  The Master  Servicer  is  authorized  to execute  and  deliver to the
Mortgagor  the  request for  reconveyance,  deed of  reconveyance  or release or
satisfaction of mortgage or such instrument  releasing the lien of the Mortgage,
together  with the  Mortgage  Note with,  as  appropriate,  written  evidence of
cancellation  thereon  and to cause the  removal  from the  registration  on the
MERS(R)  System of such  Mortgage 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. No expenses incurred
in connection with any instrument of satisfaction or deed of reconveyance  shall
be chargeable to the Custodial Account or the Certificate Account.

     (b) From time to time as is appropriate for the servicing or foreclosure of
any Mortgage  Loan, the Master  Servicer shall deliver to the Custodian,  with a
copy to the Trustee,  a certificate of a Servicing Officer  substantially in one
of the forms attached as Exhibit F hereto, or, in the case of the Custodian,  an
electronic  request  in a form  acceptable  to the  Custodian,  requesting  that
possession of all, or any document  constituting  part of, the Custodial File be
released to the Master Servicer and certifying as to the reason for such release
and that such release will not  invalidate  any insurance  coverage  provided in
respect of the Mortgage Loan under any Required  Insurance Policy.  Upon receipt
of the foregoing,  the Trustee shall deliver, or cause the Custodian to deliver,
the Custodial File or any document  therein to the Master  Servicer.  The Master
Servicer shall cause each Custodial File or any document  therein so released to
be returned to the Trustee,  or the  Custodian as agent for the Trustee when the
need therefor by the Master  Servicer no longer exists,  unless (i) the Mortgage
Loan has been liquidated and the Liquidation  Proceeds  relating to the Mortgage
Loan have been deposited in the Custodial  Account or (ii) the Custodial File or
such  document  has been  delivered  directly  or

                                      -66-
<PAGE>

through a  Subservicer  to an attorney,  or to a public  trustee or other public
official as required by law, for purposes of initiating or pursuing legal action
or other  proceedings  for the  foreclosure  of the  Mortgaged  Property  either
judicially or non-judicially,  and the Master Servicer has delivered directly or
through a  Subservicer  to the  Trustee a  certificate  of a  Servicing  Officer
certifying as to the name and address of the Person to which such Custodial File
or such document was delivered and the purpose or purposes of such delivery.  In
the event of the  liquidation  of a Mortgage Loan, the Trustee shall deliver the
Request for Release with respect  thereto to the Master Servicer upon deposit of
the related Liquidation Proceeds in the Custodial Account.

     (c) The  Trustee or the  Master  Servicer  on the  Trustee's  behalf  shall
execute and deliver to the Master Servicer,  if necessary,  any court pleadings,
requests for trustee's sale or other  documents  necessary to the foreclosure or
trustee's sale in respect of a Mortgaged Property or to any legal action brought
to obtain judgment  against any Mortgagor on the Mortgage Note or Mortgage or to
obtain a  deficiency  judgment,  or to  enforce  any  other  remedies  or rights
PROVIDED by the Mortgage  Note or Mortgage or  otherwise  available at law or in
equity.  Together  with such  documents or pleadings (if signed by the Trustee),
the Master  Servicer  shall deliver to the Trustee a certificate  of a Servicing
Officer  requesting  that such pleadings or documents be executed by the Trustee
and  certifying  as to the reason such  documents or pleadings  are required and
that the execution and delivery  thereof by the Trustee will not  invalidate any
insurance  coverage  under  any  Required  Insurance  Policy  or  invalidate  or
otherwise affect the lien of the Mortgage,  except for the termination of such a
lien upon completion of the foreclosure or trustee's sale.

     Section 3.16   Servicing and Other Compensation; Compensating Interest

     (a) The Master  Servicer,  as  compensation  for its activities  hereunder,
shall be entitled to receive on each  Distribution Date the amounts provided for
by clauses (iii),  (iv), (v) and (vi) of Section 3.10(a),  subject to clause (e)
below. The amount of servicing  compensation  provided for in such clauses shall
be accounted for on a Mortgage  Loan-by-Mortgage  Loan basis.  In the event that
Liquidation  Proceeds,  Insurance  Proceeds  and REO  Proceeds  (net of  amounts
reimbursable  therefrom  pursuant to Section  3.10(a)(ii))  in respect of a Cash
Liquidation  or REO  Disposition  exceed  the unpaid  principal  balance of such
Mortgage  Loan plus  unpaid  interest  accrued  thereon  (including  REO Imputed
Interest)  at a per annum rate equal to the  related Net  Mortgage  Rate (or the
Modified Net Mortgage Rate in the case of a Modified  Mortgage Loan), the Master
Servicer  shall be entitled to retain  therefrom and to pay to itself and/or the
related   Subservicer,   any  Foreclosure  Profits  and  any  Servicing  Fee  or
Subservicing Fee considered to be accrued but unpaid.

     (b) Additional  servicing  compensation in the form of prepayment  charges,
assumption  fees,  late  payment  charges,  investment  income on amounts in the
Custodial  Account or the Certificate  Account or otherwise shall be retained by
the Master Servicer or the Subservicer to the extent provided herein, subject to
clause (e) below.

                                      -67-
<PAGE>

     (c) The Master  Servicer shall be required to pay, or cause to be paid, all
expenses  incurred by it in connection with its servicing  activities  hereunder
(including  payment of premiums for the Primary Insurance  Policies,  if any, to
the extent such premiums are not required to be paid by the related  Mortgagors,
and the fees and  expenses of the Trustee  and any  Custodian)  and shall not be
entitled to reimbursement  therefor except as specifically  PROVIDED in Sections
3.10 and 3.14.

     (d) The Master Servicer's right to receive  servicing  compensation may not
be transferred in whole or in part except in connection with the transfer of all
of its  responsibilities  and  obligations  of the  Master  Servicer  under this
Agreement.

     (e)  Notwithstanding  any other provision  herein,  the amount of servicing
compensation  that the Master  Servicer  shall be  entitled  to receive  for its
activities  hereunder for the period ending on each  Distribution  Date shall be
reduced  (but not below zero) by an amount  equal to  Compensating  Interest (if
any) for such  Distribution  Date.  Such reduction  shall be applied during such
period as follows:  first, to any Servicing Fee or Subservicing Fee to which the
Master Servicer is entitled pursuant to Section  3.10(a)(iii) and second, to any
income or gain  realized  from any  investment  of funds  held in the  Custodial
Account or the  Certificate  Account to which the Master  Servicer  is  entitled
pursuant to Sections 3.07(c) or 4.01(b), respectively. In making such reduction,
the Master  Servicer (i) will not withdraw from the  Custodial  Account any such
amount  representing  all or a  portion  of the  Servicing  Fee to  which  it is
entitled  pursuant to Section  3.10(a)(iii)  and (ii) will not withdraw from the
Custodial Account or Certificate Account any such amount to which it is entitled
pursuant to Section 3.07(c) or 4.01(b).

     Section 3.17   Reports to the Trustee and the Company

     Not later than  fifteen  days after it receives a written  request from the
Trustee or the Company, the Master Servicer shall forward to the Trustee and the
Company a statement,  certified by a Servicing Officer, setting forth the status
of the Custodial  Account as of the close of business on such  Distribution Date
as it relates to the Mortgage Loans and showing,  for the period covered by such
statement,  the  aggregate  of deposits  in or  withdrawals  from the  Custodial
Account in respect of the Mortgage Loans for each category of deposit  specified
in Section 3.07 and each category of withdrawal specified in Section 3.10.

     Section 3.18   Annual Statement as to Compliance and Servicing Assessment

     The Master  Servicer  will  deliver to the  Company,  the  Trustee  and any
Certificate Insurer on or before the earlier of (a) March 31 of each year or (b)
with respect to any calendar  year during which the  Company'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,  the date on which the 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, a servicer compliance statement, signed
by an authorized officer of the Master Servicer,  as described in Items 1122(a),
1122(b) and 1123 of Regulation AB, to the effect that:

     (i) A review of the  Master  Servicer's  activities  during  the  reporting
period  and of its  performance  under this  Agreement  has been made under such
officer's supervision.

                                      -68-
<PAGE>

     (ii) To the best of such  officer's  knowledge,  based on such review,  the
Master Servicer has fulfilled all of its obligations under this Agreement in all
material  respects  throughout  the  reporting  period  or,  if there has been a
failure to fulfill any such obligation in any material respect,  specifying each
such failure known to such officer and the nature and status thereof.

     The Master  Servicer shall use  commercially  reasonable  efforts to obtain
from all other parties  participating  in the servicing  function any additional
certifications  required  under Item 1122 and Item 1123 of  Regulation AB to the
extent required to be included in a Report on Form 10-K; provided, however, that
a failure  to obtain  such  certifications  shall not be a breach of the  Master
Servicer's  duties  hereunder  if  any  such  party  fails  to  deliver  such  a
certification.

     Section 3.19   Annual Independent Public Accountants' Servicing Report

     On or before the  earlier of (a) March 31 of each year or (b) with  respect
to any calendar  year during which the  Company'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,  the date on which the 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,  the Master Servicer at its expense shall cause a
firm of independent public  accountants,  which shall be members of the American
Institute of  Certified  Public  Accountants,  to furnish to the Company and the
Trustee  the  attestation  required  under  Item  1122(b) of  Regulation  AB. In
rendering  such  statement,  such firm may rely,  as to matters  relating to the
direct servicing of mortgage loans by Subservicers,  upon comparable  statements
for examinations  conducted by independent public  accountants  substantially in
accordance  with standards  established  by the American  Institute of Certified
Public Accountants  (rendered within one year of such statement) with respect to
such Subservicers.

     Section 3.20   Rights of the Company in Respect of the Master Servicer

     The Master  Servicer  shall afford the  Company,  upon  reasonable  notice,
during  normal  business  hours access to all records  maintained  by the Master
Servicer  in  respect  of its rights  and  obligations  hereunder  and access to
officers of the Master Servicer responsible for such obligations.  Upon request,
the Master  Servicer  shall  furnish the Company with its most recent  financial
statements and such other information as the Master Servicer possesses regarding
its business,  affairs,  property and  condition,  financial or  otherwise.  The
Master   Servicer  shall  also  cooperate  with  all  reasonable   requests  for
information  including,  but not limited to, notices, tapes and copies of files,
regarding  itself,  the Mortgage  Loans or the  Certificates  from any Person or
Persons identified by the Company or Residential  Funding.  The Company may, but
is not obligated to, enforce the  obligations of the Master  Servicer  hereunder
and may, but is not obligated to, perform,  or cause a designee to perform,  any
defaulted  obligation of the Master Servicer hereunder or exercise the rights of
the Master  Servicer  hereunder;  provided that the Master Servicer shall not be
relieved of any of its  obligations  hereunder by virtue of such  performance by
the Company or its designee.  The Company shall not have any  responsibility  or
liability  for any action or failure  to act by the Master  Servicer  and is not
obligated  to  supervise  the  performance  of the  Master  Servicer  under this
Agreement or otherwise.

                                      -69-
<PAGE>

     Section 3.21   Administration of Buydown Funds

     (a)  With  respect  to any  Buydown  Mortgage  Loan,  the  Subservicer  has
deposited  Buydown  Funds in an account that  satisfies the  requirements  for a
Subservicing  Account (the "Buydown  Account").  The Master Servicer shall cause
the  Subservicing  Agreement to require that upon receipt from the  Mortgagor of
the amount due on a Due Date for each Buydown  Mortgage  Loan,  the  Subservicer
will withdraw from the Buydown Account the predetermined amount that, when added
to the  amount  due on such date from the  Mortgagor,  equals  the full  Monthly
Payment  and  transmit  that  amount  in  accordance   with  the  terms  of  the
Subservicing  Agreement to the Master Servicer together with the related payment
made by the Mortgagor or advanced by the Subservicer.

     (b) If the  Mortgagor on a Buydown  Mortgage  Loan prepays such loan in its
entirety  during  the period  (the  "Buydown  Period")  when  Buydown  Funds are
required to be applied to such Buydown  Mortgage Loan, the Subservicer  shall be
required to  withdraw  from the  Buydown  Account  and remit any  Buydown  Funds
remaining  in the  Buydown  Account  in  accordance  with  the  related  buydown
agreement.  The amount of Buydown Funds which may be remitted in accordance with
the related  buydown  agreement may reduce the amount required to be paid by the
Mortgagor  to fully  prepay the related  Mortgage  Loan.  If the  Mortgagor on a
Buydown  Mortgage Loan defaults on such Mortgage Loan during the Buydown  Period
and the property  securing such Buydown Mortgage Loan is sold in the liquidation
thereof  (either by the Master Servicer or the insurer under any related Primary
Insurance  Policy),  the  Subservicer  shall be required  to  withdraw  from the
Buydown  Account the Buydown Funds for such Buydown  Mortgage Loan still held in
the Buydown Account and remit the same to the Master Servicer in accordance with
the terms of the Subservicing Agreement for deposit in the Custodial Account or,
if  instructed  by the Master  Servicer,  pay to the  insurer  under any related
Primary  Insurance  Policy if the  Mortgaged  Property  is  transferred  to such
insurer  and such  insurer  pays all of the loss  incurred  in  respect  of such
default.  Any amount so remitted  pursuant  to the  preceding  sentence  will be
deemed to reduce the amount owed on the Mortgage Loan.

     Section 3.22   Advance Facility

     (a) The Master  Servicer is hereby  authorized to enter into a financing or
other facility (any such arrangement, an "Advance Facility") under which (1) the
Master  Servicer  sells,  assigns or pledges  to another  Person (an  "Advancing
Person") the Master  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 the Master
Servicer pursuant to this Agreement. No consent of the Company, the Trustee, the
Certificateholders  or any other  party  shall be  required  before  the  Master
Servicer may enter into an Advance  Facility.  Notwithstanding  the existence of
any Advance  Facility  under which an Advancing  Person  agrees to fund Advances
and/or Servicing  Advances on the Master Servicer's  behalf, the Master Servicer
shall remain obligated pursuant to this Agreement to make Advances and Servicing
Advances  pursuant to and as required by this Agreement.  If the Master Servicer
enters into an Advance Facility,  and for so long as an Advancing Person remains
entitled to receive  reimbursement  for any  Advances  including  Nonrecoverable
Advances ("Advance  Reimbursement  Amounts") and/or Servicing Advances including
Nonrecoverable  Advances ("Servicing Advance Reimbursement Amounts" and together
with Advance

                                      -70-
<PAGE>

Reimbursement Amounts, "Reimbursement Amounts") (in each case to the extent such
type  of  Reimbursement  Amount  is  included  in  the  Advance  Facility),   as
applicable,  pursuant to this Agreement, then the Master Servicer shall identify
such Reimbursement Amounts consistent with the reimbursement rights set forth in
Section 3.10(a)(ii) and (vii) and remit such Reimbursement Amounts in accordance
with  this  Section  3.22 or  otherwise  in  accordance  with the  documentation
establishing  the  Advance  Facility to such  Advancing  Person or to a trustee,
agent or custodian (an "Advance Facility Trustee")  designated by such Advancing
Person  in an  Advance  Facility  Notice  described  below in  Section  3.22(b).
Notwithstanding  the  foregoing,  if so  required  pursuant  to the terms of the
Advance Facility,  the Master Servicer may direct, and if so directed in writing
the  Trustee  is hereby  authorized  to and shall  pay to the  Advance  Facility
Trustee the Reimbursement Amounts identified pursuant to the preceding sentence.
An Advancing  Person whose  obligations  hereunder are limited to the funding of
Advances  and/or   Servicing   Advances  shall  not  be  required  to  meet  the
qualifications of a Master Servicer or a Subservicer pursuant to Section 3.02(a)
or  6.02(c)  hereof  and  shall not be deemed  to be a  Subservicer  under  this
Agreement.  Notwithstanding  anything to the contrary herein,  in no event shall
Advance  Reimbursement  Amounts or Servicing  Advance  Reimbursement  Amounts be
included   in   the   Available    Distribution   Amount   or   distributed   to
Certificateholders.

     (b) If the Master  Servicer  enters into an Advance  Facility and makes the
election  set forth in Section  3.22(a),  the Master  Servicer  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 an Advance
Facility Trustee  designated in the Advance Facility Notice. An Advance Facility
Notice  may only be  terminated  by the joint  written  direction  of the Master
Servicer  and the related  Advancing  Person (and any related  Advance  Facility
Trustee).

     (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 the Master  Servicer would be permitted to reimburse  itself in accordance
with Section  3.10(a)(ii) and (vii) hereof,  assuming the Master Servicer or the
Advancing Person had made the related  Advance(s)  and/or Servicing  Advance(s).
Notwithstanding   the  foregoing,   except  with  respect  to  reimbursement  of
Nonrecoverable  Advances as set forth in Section 3.10(c) of this  Agreement,  no
Person  shall be entitled  to  reimbursement  from funds held in the  Collection
Account  for  future  distribution  to   Certificateholders   pursuant  to  this
Agreement.  Neither the Company nor the Trustee shall have any duty or liability
with  respect to the  calculation  of any  Reimbursement  Amount,  nor shall the
Company  or the  Trustee  have  any  responsibility  to  track  or  monitor  the
administration  of the  Advance  Facility  and the  Company  shall  not have any
responsibility to track, monitor or verify the payment of Reimbursement  Amounts
to the related Advancing Person or Advance Facility Trustee. The Master Servicer
shall  maintain  and  provide  to  any  Successor  Master  Servicer  a  detailed
accounting on a loan-by-loan  basis as to amounts advanced by, sold,  pledged or
assigned to, and  reimbursed  to any  Advancing  Person.  The  Successor  Master
Servicer  shall be  entitled  to rely on any such  information  provided  by the
Master  Servicer and the Successor  Master  Servicer shall not be liable for any
errors in such information.

                                      -71-
<PAGE>

     (d) Upon the  direction of and at the expense of the Master  Servicer,  the
Trustee  agrees  to  execute  such  acknowledgments,   certificates,  and  other
documents  provided by the Master  Servicer and reasonably  satisfactory  to the
Trustee  recognizing the interests of any Advancing  Person or Advance  Facility
Trustee in such  Reimbursement  Amounts as the Master  Servicer  may cause to be
made subject to Advance Facilities pursuant to this Section 3.22, and such other
documents  in  connection  with  such  Advance  Facility  as may  be  reasonably
requested from time to time by any Advancing  Person or Advance Facility Trustee
and reasonably satisfactory to the Trustee.

     (e)  Reimbursement  Amounts  collected  with respect to each  Mortgage Loan
shall 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, subject to the qualifications set forth below:

          (i) Any successor Master Servicer to Residential Funding (a "Successor
     Master  Servicer")  and the Advancing  Person or Advance  Facility  Trustee
     shall be required to apply all amounts  available in  accordance  with this
     Section 3.22(e) to the reimbursement of Advances and Servicing  Advances in
     the  manner  provided  for  herein;  provided,   however,  that  after  the
     succession  of a  Successor  Master  Servicer,  (A) to the extent  that any
     Advances or Servicing Advances with respect to any particular Mortgage Loan
     are  reimbursed  from  payments  or  recoveries,  if any,  from the related
     Mortgagor,  and Liquidation  Proceeds or Insurance  Proceeds,  if any, with
     respect to that Mortgage Loan,  reimbursement  shall be made, first, to the
     Advancing  Person or Advance Facility Trustee in respect of Advances and/or
     Servicing  Advances  related  to that  Mortgage  Loan to the  extent of the
     interest  of the  Advancing  Person or  Advance  Facility  Trustee  in such
     Advances  and/or  Servicing  Advances,  second to the  Master  Servicer  in
     respect of Advances and/or Servicing Advances related to that Mortgage Loan
     in excess  of those in which  the  Advancing  Person  or  Advance  Facility
     Trustee Person has an interest, and third, to the Successor Master Servicer
     in respect of any other Advances and/or Servicing  Advances related to that
     Mortgage  Loan,  from  such  sources  as  and  when   collected,   and  (B)
     reimbursements of Advances and Servicing  Advances that are  Nonrecoverable
     Advances shall be made pro rata to the Advancing Person or Advance Facility
     Trustee,  on the one hand, and any such Successor Master  Servicer,  on the
     other  hand,  on  the  basis  of  the  respective   aggregate   outstanding
     unreimbursed  Advances  and  Servicing  Advances  that  are  Nonrecoverable
     Advances owed to the Advancing  Person,  Advance Facility Trustee or Master
     Servicer  pursuant  to this  Agreement,  on the  one  hand,  and  any  such
     Successor  Master  Servicer,  on the other hand,  and without regard to the
     date on which any such Advances or Servicing Advances shall have been made.
     In the event that, as a result of the FIFO allocation made pursuant to this
     Section  3.22(e),  some  or  all  of a  Reimbursement  Amount  paid  to the
     Advancing  Person or  Advance  Facility  Trustee  relates  to  Advances  or
     Servicing  Advances  that  were  made by a Person  other  than  Residential
     Funding or the  Advancing  Person or  Advance  Facility  Trustee,  then the
     Advancing Person or Advance Facility Trustee shall be required to remit any
     portion of such Reimbursement Amount to the Person entitled to such portion
     of such  Reimbursement  Amount.  Without  limiting  the  generality  of the
     foregoing,  Residential  Funding shall remain  entitled to be reimbursed by
     the  Advancing  Person or Advance  Facility  Trustee for all  Advances  and
     Servicing Advances funded by Residential  Funding

                                      -72-
<PAGE>

     to the extent the related Reimbursement Amount(s) have not been assigned or
     pledged  to  an  Advancing   Person  or  Advance  Facility   Trustee.   The
     documentation  establishing any Advance Facility shall require  Residential
     Funding to  provide to the  related  Advancing  Person or Advance  Facility
     Trustee loan by loan information with respect to each Reimbursement  Amount
     distributed to such Advancing  Person or Advance  Facility  Trustee on each
     date of remittance  thereof to such  Advancing  Person or Advance  Facility
     Trustee, to enable the Advancing Person or Advance Facility Trustee to make
     the FIFO  allocation  of each  Reimbursement  Amount  with  respect to each
     Mortgage Loan.

          (ii) By way of illustration, and not by way of limiting the generality
     of the foregoing, if the Master Servicer resigns or is terminated at a time
     when the Master Servicer is a party to an Advance Facility, and is replaced
     by a Successor Master Servicer,  and the Successor Master Servicer directly
     funds  Advances or Servicing  Advances  with respect to a Mortgage Loan and
     does not assign or pledge the related  Reimbursement Amounts to the related
     Advancing  Person  or  Advance  Facility  Trustee,  then all  payments  and
     recoveries  received from the related  Mortgagor or received in the form of
     Liquidation   Proceeds  with  respect  to  such  Mortgage  Loan  (including
     Insurance  Proceeds  collected in  connection  with a  liquidation  of such
     Mortgage Loan) will be allocated  first to the Advancing  Person or Advance
     Facility Trustee until the related  Reimbursement  Amounts  attributable to
     such Mortgage  Loan that are owed to the Master  Servicer and the Advancing
     Person, which were made prior to any Advances or Servicing Advances made by
     the Successor Master Servicer, have been reimbursed in full, at which point
     the  Successor  Master  Servicer  shall be  entitled  to retain all related
     Reimbursement Amounts subsequently  collected with respect to that Mortgage
     Loan  pursuant to Section  3.10 of this  Agreement.  To the extent that the
     Advances or Servicing Advances are Nonrecoverable Advances to be reimbursed
     on an  aggregate  basis  pursuant to Section  3.10 of this  Agreement,  the
     reimbursement  paid in this manner  will be made pro rata to the  Advancing
     Person or Advance  Facility  Trustee,  on the one hand,  and the  Successor
     Master Servicer, on the other hand, as described in clause (i)(B) above.

     (f) The Master  Servicer  shall remain  entitled to be  reimbursed  for all
Advances and Servicing  Advances funded by the Master Servicer to the extent the
related rights to be reimbursed therefor have not been sold, assigned or pledged
to an Advancing Person.

     (g) Any  amendment to this  Section 3.22 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 3.22,  including  amendments to
add provisions  relating to a successor Master Servicer,  may be entered into by
the  Trustee,  the  Company and the Master  Servicer  without the consent of any
Certificateholder,  with written  confirmation  from each Rating Agency that the
amendment  will not result in the  reduction  of the ratings on any class of the
Certificates  below the lesser of the then  current or original  ratings on such
Certificates,  and an  opinion  of  counsel  as  required  by  Section  11.01(c)
notwithstanding  anything to the  contrary in Section  11.01 of or  elsewhere in
this Agreement.

                                      -73-
<PAGE>

     (h) Any rights of set-off that the Trust Fund,  the  Trustee,  the Company,
any Successor  Master  Servicer or any other Person might otherwise have against
the Master  Servicer under this  Agreement  shall not attach to any rights to be
reimbursed for Advances or Servicing Advances that have been sold,  transferred,
pledged, conveyed or assigned to any Advancing Person.

     (i) At any time when an Advancing Person shall have ceased funding Advances
and/or  Servicing  Advances  (as the case may be) and the  Advancing  Person  or
related  Advance  Facility  Trustee  shall have received  Reimbursement  Amounts
sufficient in the aggregate to reimburse all Advances and/or Servicing  Advances
(as the case may be) the right to  reimbursement  for which were assigned to the
Advancing  Person,  then upon the  delivery  of a written  notice  signed by the
Advancing  Person and the Master  Servicer  or its  successor  or assign) to the
Trustee  terminating  the  Advance  Facility  Notice  (the  "Notice of  Facility
Termination"),  the Master Servicer or its Successor Master Servicer shall again
be entitled to withdraw  and retain the related  Reimbursement  Amounts from the
Custodial Account pursuant to Section 3.10.

     (j) After  delivery  of any  Advance  Facility  Notice,  and until any such
Advance Facility Notice has been terminated by a Notice of Facility Termination,
this  Section 3.22 may not be amended or  otherwise  modified  without the prior
written consent of the related Advancing Person.

                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

     Section 4.01   Certificate Account

     (a) The  Master  Servicer  on behalf of the  Trustee  shall  establish  and
maintain a Certificate  Account in which the Master  Servicer  shall cause to be
deposited  on behalf of the Trustee on or before 2:00 P.M. New York time on each
Certificate Account Deposit Date by wire transfer of immediately available funds
an amount  equal to the sum of (i) any  Advance for the  immediately  succeeding
Distribution  Date,  (ii) any amount required to be deposited in the Certificate
Account pursuant to Section  3.12(a),  (iii) any amount required to be deposited
in the Certificate  Account pursuant to Section 3.16(e) or Section 4.07 and (iv)
all  other  amounts  constituting  the  Available  Distribution  Amount  for the
immediately succeeding Distribution Date.

     (b) The Trustee  shall,  upon  written  request  from the Master  Servicer,
invest or cause the institution  maintaining  the Certificate  Account to invest
the funds in the Certificate Account in Permitted Investments  designated in the
name of the  Trustee  for the  benefit of the  Certificateholders,  which  shall
mature or be payable on demand not later than the  Business  Day next  preceding
the  Distribution  Date next following the date of such investment  (except that
(i) any  investment in the  institution  with which the  Certificate  Account is
maintained may mature or be payable on demand on such Distribution Date and (ii)
any other  investment  may mature or be  payable on demand on such  Distribution
Date  if the  Trustee  shall  advance  funds  on such  Distribution  Date to the
Certificate   Account  in  the  amount  payable  on  such   investment  on  such

                                      -74-
<PAGE>

Distribution  Date,  pending  receipt  thereof to the extent  necessary  to make
distributions on the Certificates) and shall not be sold or disposed of prior to
maturity. Subject to Section 3.16(e), all income and gain realized from any such
investment  shall be for the benefit of the Master Servicer and shall be subject
to its withdrawal or order from time to time. The amount of any losses  incurred
in respect of any such investments shall be deposited in the Certificate Account
by the Master Servicer out of its own funds  immediately as realized without any
right of  reimbursement.  The Trustee or its Affiliates are permitted to receive
compensation that could be deemed to be in the Trustee's  economic self interest
for (i) serving as investment  adviser (with respect to investments made through
its Affiliates),  administrator,  shareholder servicing agent,  custodian or sub
custodian  with  respect  to certain of the  Permitted  Investments,  (ii) using
Affiliates to effect  transactions  in certain  Permitted  Investments and (iii)
effecting transactions in certain Permitted Investments.

     Section 4.02   Distributions

     As provided in Section 4.02 of the Series Supplement.

     Section 4.03   Statements  to  Certificateholders;   Statements  to  Rating
                    Agencies; Exchange Act Reporting

     (a) Concurrently with each distribution  charged to the Certificate Account
and with respect to each  Distribution Date the Master Servicer shall forward to
the Trustee and the Trustee  shall either  forward by mail or make  available to
each Holder and the Company,  via the Trustee's  internet  website,  a statement
(and at its option,  any additional  files containing the same information in an
alternative  format) setting forth information as to each Class of Certificates,
the  Mortgage  Pool and, if the  Mortgage  Pool is comprised of two or more Loan
Groups,  each Loan Group, to the extent applicable.  This statement will include
the information set forth in an exhibit to the Series  Supplement.  Such exhibit
shall set forth the Trustee's  internet  website  address  together with a phone
number.  The Trustee  shall mail to each  Holder  that  requests a paper copy by
telephone  a paper  copy via first  class  mail.  The  Trustee  may  modify  the
distribution  procedures set forth in this Section provided that such procedures
are no less  convenient  for the  Certificateholders.  The Trustee shall provide
prior   notification   to   the   Company,   the   Master   Servicer   and   the
Certificateholders  regarding  any such  modification.  In addition,  the Master
Servicer shall provide to any manager of a trust fund  consisting of some or all
of the Certificates,  upon reasonable request, such additional information as is
reasonably  obtainable by the Master  Servicer at no  additional  expense to the
Master  Servicer.  Also, at the request of a Rating Agency,  the Master Servicer
shall provide the information relating to the Reportable Modified Mortgage Loans
substantially  in the form  attached  hereto as Exhibit Q to such Rating  Agency
within a reasonable period of time; provided,  however, that the Master Servicer
shall not be  required  to provide  such  information  more than four times in a
calendar year to any Rating Agency.

                                      -75-
<PAGE>

     (b) Within a reasonable  period of time after it receives a written request
from a Holder of a  Certificate,  other than a Class R  Certificate,  the Master
Servicer shall prepare, or cause to be prepared,  and shall forward, or cause to
be  forwarded,  to each Person who at any time during the calendar  year was the
Holder  of a  Certificate,  other  than  a  Class  R  Certificate,  a  statement
containing the  information  set forth in clauses (v) and (vi) of the exhibit to
the Series  Supplement  referred to in subSection (a) above  aggregated for such
calendar  year or  applicable  portion  thereof  during  which such Person was a
Certificateholder.  Such  obligation of the Master  Servicer  shall be deemed to
have been  satisfied  to the extent that  substantially  comparable  information
shall be provided by the Master  Servicer  pursuant to any  requirements  of the
Code.

     (c) Within a reasonable  period of time after it receives a written request
from any Holder of a Class R Certificate,  the Master Servicer shall prepare, or
cause to be  prepared,  and shall  forward,  or cause to be  forwarded,  to each
Person  who at any time  during  the  calendar  year was the Holder of a Class R
Certificate,  a statement  containing  the applicable  distribution  information
provided  pursuant to this Section 4.03  aggregated  for such  calendar  year or
applicable  portion thereof during which such Person was the Holder of a Class R
Certificate. Such obligation of the Master Servicer shall be deemed to have been
satisfied  to the extent  that  substantially  comparable  information  shall be
provided by the Master Servicer pursuant to any requirements of the Code.

     (d) Upon the written request of any Certificateholder, the Master Servicer,
as   soon   as   reasonably   practicable,    shall   provide   the   requesting
Certificateholder with such information as is necessary and appropriate,  in the
Master  Servicer's  sole  discretion,  for  purposes  of  satisfying  applicable
reporting requirements under Rule 144A.

     (e) The Master  Servicer  shall, on behalf of the Company and in respect of
the Trust  Fund,  sign and cause to be filed with the  Commission  any  periodic
reports  required to be filed under the  provisions of the Exchange Act, and the
rules  and  regulations  of  the  Commission   thereunder   including,   without
limitation, reports on Form 10-K, Form 10-D and Form 8-K. In connection with the
preparation  and filing of such  periodic  reports,  the  Trustee  shall  timely
provide to the Master Servicer (I) a list of  Certificateholders as shown on the
Certificate  Register as of the end of each  calendar  year,  (II) copies of all
pleadings,  other legal process and any other documents  relating to any claims,
charges or complaints involving the Trustee, as trustee hereunder,  or the Trust
Fund that are received by a Responsible Officer of the Trustee,  (III) notice of
all  matters  that,  to the actual  knowledge  of a  Responsible  Officer of the
Trustee,  have been  submitted to a vote of the  Certificateholders,  other than
those matters that have been  submitted to a vote of the  Certificateholders  at
the  request  of the  Company  or the Master  Servicer,  and (IV)  notice of any
failure of the Trustee to make any  distribution  to the  Certificateholders  as
required pursuant to the Series Supplement.  Neither the Master Servicer nor the
Trustee shall have any liability with respect to the Master  Servicer's  failure
to properly prepare or file such periodic reports  resulting from or relating to
the  Master  Servicer's  inability  or failure  to obtain  any  information  not
resulting from the Master Servicer's own negligence or willful misconduct.

     (f) Any Form 10-K filed with the Commission in connection with this Section
4.03 shall include, with respect to the Certificates relating to such 10-K:

                                      -76-
<PAGE>

          (i) A  certification,  signed by the  senior  officer in charge of the
     servicing functions of the Master Servicer, in the form attached as Exhibit
     O  hereto  or  such  other  form as may be  required  or  permitted  by the
     Commission (the "Form 10-K Certification"), in compliance with Rules 13a-14
     and 15d-14  under the  Exchange Act and any  additional  directives  of the
     Commission.

          (ii) A report  regarding  its  assessment  of  compliance  during  the
     preceding calendar year with all applicable servicing criteria set forth in
     relevant Commission regulations with respect to mortgage-backed  securities
     transactions taken as a whole involving the Master Servicer that are backed
     by the same types of assets as those backing the  certificates,  as well as
     similar  reports on assessment  of  compliance  received from other parties
     participating in the servicing function as required by relevant  Commission
     regulations,  as  described in Item  1122(a) of  Regulation  AB. The Master
     Servicer shall obtain from all other parties participating in the servicing
     function any required assessments.

          (iii) With respect to each  assessment  report  described  immediately
     above, a report by a registered public accounting firm that attests to, and
     reports on, the  assessment  made by the asserting  party,  as set forth in
     relevant  Commission  regulations,  as described in  Regulation  1122(b) of
     Regulation AB and Section 3.19

          (iv) The  servicer  compliance  certificate  required to be  delivered
     pursuant Section 3.18.

     (g) In  connection  with the Form 10-K  Certification,  the  Trustee  shall
provide the Master Servicer with a back-up  certification  substantially  in the
form attached hereto as Exhibit P.

     (h) This  Section  4.03 may be amended in  accordance  with this  Agreement
without the consent of the Certificateholders.

     (i) The Trustee shall make available on the Trustee's internet website each
of the reports  filed with the  Commission  by or on behalf of the Company under
the Exchange Act upon delivery of such reports to the Trustee.

     Section 4.04   Distribution  of Reports  to the  Trustee  and the  Company;
                    Advances by the Master Servicer

     (a) Prior to the close of business on the  Determination  Date,  the Master
Servicer shall furnish a written statement to the Trustee,  any Paying Agent and
the  Company  (the  information  in  such  statement  to be  made  available  to
Certificateholders  and  any  Certificate  Insurer  by the  Master  Servicer  on
request)  setting  forth  (i) the  Available  Distribution  Amount  and (ii) the
amounts  required to be withdrawn from the Custodial  Account and deposited into
the  Certificate  Account  on the  immediately  succeeding  Certificate  Account
Deposit Date pursuant to clause (iii) of Section 4.01(a).  The  determination by
the Master  Servicer of such amounts shall,  in the absence of obvious error, be
presumptively  deemed to be correct for all purposes  hereunder  and the Trustee
shall be protected in relying  upon the same  without any  independent  check or
verification.

                                      -77-
<PAGE>

     (b) On or  before  2:00  P.M.  New York  time on each  Certificate  Account
Deposit Date, the Master  Servicer  shall either (i) deposit in the  Certificate
Account from its own funds, or funds received therefor from the Subservicers, an
amount equal to the Advances to be made by the Master Servicer in respect of the
related  Distribution  Date,  which shall be in an aggregate amount equal to the
aggregate  amount of  Monthly  Payments  (with  each  interest  portion  thereof
adjusted to the Net  Mortgage  Rate),  less the amount of any related  Servicing
Modifications,  Debt Service  Reductions or reductions in the amount of interest
collectable  from the Mortgagor  pursuant to the Relief Act, on the  Outstanding
Mortgage  Loans as of the  related Due Date,  which  Monthly  Payments  were not
received  as of the close of  business  as of the  related  Determination  Date;
provided that no Advance shall be made if it would be a Nonrecoverable  Advance,
(ii) withdraw  from amounts on deposit in the  Custodial  Account and deposit in
the  Certificate  Account  all  or a  portion  of the  Amount  Held  for  Future
Distribution  in discharge of any such  Advance,  or (iii) make  advances in the
form of any combination of (i) and (ii)  aggregating the amount of such Advance.
Any portion of the Amount Held for Future Distribution so used shall be replaced
by the Master Servicer by deposit in the Certificate  Account on or before 11:00
A.M. New York time on any future Certificate  Account Deposit Date to the extent
that  funds  attributable  to the  Mortgage  Loans  that  are  available  in the
Custodial  Account for deposit in the  Certificate  Account on such  Certificate
Account Deposit Date shall be less than payments to Certificateholders  required
to be made on the following  Distribution  Date.  The Master  Servicer  shall be
entitled  to use any  Advance  made by a  Subservicer  as  described  in Section
3.07(b)  that has been  deposited  in the  Custodial  Account on or before  such
Distribution Date as part of the Advance made by the Master Servicer pursuant to
this Section 4.04. The amount of any  reimbursement  pursuant to Section 4.02(a)
in respect of outstanding  Advances on any Distribution  Date shall be allocated
to specific Monthly Payments due but delinquent for previous Due Periods,  which
allocation shall be made, to the extent  practicable,  to Monthly Payments which
have been delinquent for the longest period of time. Such  allocations  shall be
conclusive for purposes of  reimbursement to the Master Servicer from recoveries
on related Mortgage Loans pursuant to Section 3.10.

     The  determination by the Master 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 Master Servicer
delivered to the Company and the Trustee.

     If the Master  Servicer  determines  as of the Business Day  preceding  any
Certificate  Account  Deposit  Date  that it will be unable  to  deposit  in the
Certificate  Account an amount equal to the Advance  required to be made for the
immediately succeeding Distribution Date, it shall give notice to the Trustee of
its inability to advance (such notice may be given by telecopy),  not later than
3:00 P.M.,  New York time, on such Business Day,  specifying the portion of such
amount  that it will be unable to  deposit.  Not later than 3:00 P.M.,  New York
time, on the Certificate Account Deposit Date the Trustee shall, unless by 12:00
Noon, New York time, on such day the Trustee shall have been notified in writing
(by  telecopy)  that the Master  Servicer  shall  have  directly  or  indirectly
deposited in the  Certificate  Account such portion of the amount of the Advance
as to which  the  Master  Servicer  shall  have  given  notice  pursuant  to the
preceding  sentence,  pursuant to Section 7.01,  (a) terminate all of the rights
and  obligations of the Master  Servicer under this Agreement in accordance with
Section 7.01 and (b) assume the rights and  obligations  of the Master  Servicer
hereunder,  including the  obligation to deposit in the  Certificate  Account an
amount equal to the Advance for the immediately succeeding Distribution Date.

                                      -78-
<PAGE>

     The Trustee  shall  deposit all funds it receives  pursuant to this Section
4.04 into the Certificate Account.

     Section 4.05   Allocation of Realized Losses

     As provided in Section 4.05 of the Series Supplement.

     Section 4.06  Reports of Foreclosures and Abandonment of Mortgaged Property

     The Master Servicer or the Subservicers shall file information returns with
respect to the receipt of mortgage  interests  received in a trade or  business,
the reports of foreclosures and  abandonments of any Mortgaged  Property and the
information returns relating to cancellation of indebtedness income with respect
to  any  Mortgaged  Property  required  by  Sections  6050H,  6050J  and  6050P,
respectively,  of the Code, and deliver to the Trustee an Officers'  Certificate
on or before  March 31 of each year  stating  that such reports have been filed.
Such reports  shall be in form and  substance  sufficient  to meet the reporting
requirements imposed by Sections 6050H, 6050J and 6050P of the Code.

     Section 4.07   Optional Purchase of Defaulted Mortgage Loans

     (a) With respect to any Mortgage  Loan which is delinquent in payment by 90
days or more,  the Master  Servicer  may, at its option,  purchase such Mortgage
Loan from the  Trustee  at the  Purchase  Price  therefor;  provided,  that such
Mortgage Loan that becomes 90 days or more delinquent  during any given calendar
quarter shall only be eligible for purchase  pursuant to this Section during the
period  beginning on the first Business Day of the following  calendar  quarter,
and ending at the close of business on the  second-to-last  Business Day of such
following calendar quarter; and provided, further, that such Mortgage Loan is 90
days or more delinquent at the time of repurchase.  Such option if not exercised
shall  not  thereafter  be  reinstated  as to  any  Mortgage  Loan,  unless  the
delinquency is cured and the Mortgage Loan thereafter  again becomes  delinquent
in payment by 90 days or more in a subsequent calendar quarter.

     (b) If at any time the Master  Servicer makes a payment to the  Certificate
Account  covering the amount of the Purchase  Price for such a Mortgage  Loan as
provided in clause (a) above, and the Master Servicer  provides to the Trustee a
certification  signed by a  Servicing  Officer  stating  that the amount of such
payment has been deposited in the  Certificate  Account,  then the Trustee shall
execute  the  assignment  of such  Mortgage  Loan at the  request  of the Master
Servicer  without recourse to the Master Servicer which shall succeed to all the
Trustee's  right,  title and  interest  in and to such  Mortgage  Loan,  and all
security and documents relative thereto.  Such assignment shall be an assignment
outright and not for  security.  The Master  Servicer  will  thereupon  own such
Mortgage, and all such security and documents, free of any further obligation to
the Trustee or the Certificateholders with respect thereto.

                                      -79-
<PAGE>

     If,  however,  the  Master  Servicer  shall  have  exercised  its  right to
repurchase  a Mortgage  Loan  pursuant  to this  Section  4.07 upon the  written
request of and with funds provided by the Junior Certificateholder and thereupon
transferred  such  Mortgage  Loan to the  Junior  Certificateholder,  the Master
Servicer shall so notify the Trustee in writing.

     Section 4.08   Surety Bond

     (a) If a Required  Surety  Payment is payable  pursuant  to the Surety Bond
with respect to any Additional  Collateral  Loan,  the Master  Servicer shall so
notify the  Trustee as soon as  reasonably  practicable  and the  Trustee  shall
promptly  complete the notice in the form of Attachment 1 to the Surety Bond and
shall  promptly  submit  such  notice to the  Surety  as a claim for a  Required
Surety.  The Master Servicer shall upon request assist the Trustee in completing
such  notice and shall  provide  any  information  requested  by the  Trustee in
connection therewith.

     (b) Upon receipt of a Required  Surety Payment from the Surety on behalf of
the Holders of  Certificates,  the Trustee shall  deposit such  Required  Surety
Payment in the  Certificate  Account and shall  distribute  such Required Surety
Payment,  or the proceeds thereof,  in accordance with the provisions of Section
4.02.

     (c) The Trustee shall (i) receive as  attorney-in-fact  of each Holder of a
Certificate  any Required  Surety  Payment from the Surety and (ii) disburse the
same to the Holders of such Certificates as set forth in Section 4.02.

                                   ARTICLE V

                                THE CERTIFICATES

     Section 5.01   The Certificates

     (a) The  Senior,  Class X,  Class M, Class B, Class P, Class SB and Class R
Certificates  shall be  substantially in the forms set forth in Exhibits A, A-I,
B, C, C-I,  C-II and D,  respectively,  or such other form or forms shall be set
forth in the Series  Supplement,  and shall,  on original issue, be executed and
delivered by the Trustee to the  Certificate  Registrar for  authentication  and
delivery to or upon the order of the Company  upon receipt by the Trustee or the
Custodian of the documents  specified in Section 2.01. The Certificates shall be
issuable in the minimum denominations designated in the Preliminary Statement to
the Series Supplement.

     The  Certificates  shall be executed by manual or  facsimile  signature  on
behalf of an authorized officer of the Trustee.  Certificates bearing the manual
or facsimile  signatures of individuals who were at any time the proper officers
of the Trustee shall bind the Trustee,  notwithstanding that such individuals or
any of them have ceased to hold such  offices  prior to the  authentication  and
delivery of such  Certificate  or did not hold such  offices at the date of such
Certificates.  No  Certificate  shall be  entitled  to any  benefit  under  this
Agreement, or be valid for any purpose, unless there appears on such Certificate
a certificate of  authentication  substantially  in the form provided for herein
executed by the Certificate Registrar by manual signature,  and such certificate
upon any Certificate shall be conclusive evidence,  and the only evidence,  that
such  Certificate  has been duly  authenticated  and  delivered  hereunder.  All
Certificates shall be dated the date of their authentication.

                                      -80-
<PAGE>

     (b) Except as provided below,  registration of Book-Entry  Certificates may
not be transferred by the Trustee  except to another  Depository  that agrees to
hold such  Certificates  for the  respective  Certificate  Owners with Ownership
Interests therein.  The Holders of the Book-Entry  Certificates shall hold their
respective  Ownership Interests in and to each of such Certificates  through the
book-entry facilities of the Depository and, except as provided below, shall not
be entitled to Definitive  Certificates in respect of such Ownership  Interests.
All transfers by Certificate Owners of their respective  Ownership  Interests in
the  Book-Entry  Certificates  shall be made in accordance  with the  procedures
established by the Depository  Participant or brokerage firm  representing  such
Certificate  Owner.  Each  Depository  Participant  shall transfer the Ownership
Interests  only  in  the  Book-Entry   Certificates  of  Certificate  Owners  it
represents or of brokerage  firms for which it acts as agent in accordance  with
the Depository's normal procedures.

     The  Trustee,  the Master  Servicer  and the Company  may for all  purposes
(including  the making of payments due on the  respective  Classes of Book-Entry
Certificates)  deal with the Depository as the authorized  representative of the
Certificate  Owners  with  respect  to  the  respective  Classes  of  Book-Entry
Certificates  for the purposes of  exercising  the rights of  Certificateholders
hereunder.  The rights of  Certificate  Owners  with  respect to the  respective
Classes of Book-Entry  Certificates shall be limited to those established by law
and agreements between such Certificate  Owners and the Depository  Participants
and brokerage firms representing such Certificate Owners.  Multiple requests and
directions  from,  and  votes  of,  the  Depository  as  Holder  of any Class of
Book-Entry  Certificates  with  respect to any  particular  matter  shall not be
deemed  inconsistent  if they are made with  respect  to  different  Certificate
Owners.  The Trustee may establish a reasonable  record date in connection  with
solicitations  of consents from or voting by  Certificateholders  and shall give
notice to the Depository of such record date.

     If with respect to any Book-Entry  Certificate  (i)(A) the Company  advises
the  Trustee  in writing  that the  Depository  is no longer  willing or able to
properly  discharge  its  responsibilities  as  Depository  with respect to such
Book-Entry  Certificate  and (B) the  Company  is unable  to locate a  qualified
successor, or (ii)(A) the Depositor at its option advises the Trustee in writing
that  it  elects  to  terminate  the  book-entry   system  for  such  Book-Entry
Certificate  through  the  Depositary  and (B) upon  receipt of notice  from the
Depository of the  Depositor's  election to terminate the book-entry  system for
such Book-Entry  Certificate,  the Depository  Participants  holding  beneficial
interests in such Book-Entry  Certificates  agree to initiate such  termination,
the Trustee shall notify all Certificate  Owner of such Book-Entry  Certificate,
through  the  Depository,  of  the  occurrence  of  any  such  event  and of the
availability  of Definitive  Certificates to Certificate  Owners  requesting the
same.  Upon  surrender  to the  Trustee of the  Book-Entry  Certificates  by the
Depository,  accompanied by  registration  instructions  from the Depository for
registration of transfer,  the Trustee shall execute,  authenticate  and deliver
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

                                      -81-
<PAGE>

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 Principal
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  Certificate Principal Balance of such
Class of Certificates by the amount of the Definitive Certificates.

     None of the Company, the Master Servicer or the Trustee shall be liable for
any  actions  taken  by  the  Depository  or  its  nominee,  including,  without
limitation,  any delay in delivery of any  instructions  required  under Section
5.01 and may  conclusively  rely on, and shall be  protected in relying on, such
instructions.  Upon the issuance of Definitive  Certificates the Trustee and the
Master  Servicer shall  recognize the Holders of the Definitive  Certificates as
Certificateholders hereunder.

     (c) If the Class A-V Certificates are Definitive Certificates, from time to
time Residential  Funding,  as the initial Holder of the Class A-V Certificates,
may exchange such Holder's  Class A-V  Certificates  for Subclasses of Class A-V
Certificates  to be issued  under this  Agreement  by  delivering a "Request for
Exchange"  substantially in the form attached hereto as Exhibit N executed by an
authorized  officer,  which  Subclasses,  in the  aggregate,  will represent the
Uncertificated Class A-V REMIC Regular Interests  corresponding to the Class A-V
Certificates  so surrendered  for exchange.  Any Subclass so issued shall bear a
numerical  designation  commencing with Class A-V-1 and continuing  sequentially
thereafter,  and will evidence ownership of the  Uncertificated  Class A-V REMIC
Regular Interest or Interests specified in writing by such initial Holder to the
Trustee.  The Trustee may  conclusively,  without any independent  verification,
rely  on,  and  shall  be  protected  in  relying  on,   Residential   Funding's
determinations  of  the   Uncertificated   Class  A-V  REMIC  Regular  Interests
corresponding  to any  Subclass,  the  Initial  Notional  Amount and the initial
Pass-Through  Rate on a Subclass as set forth in such  Request for  Exchange and
the Trustee  shall have no duty to  determine  if any  Uncertificated  Class A-V
REMIC Regular  Interest  designated on a Request for Exchange  corresponds  to a
Subclass  which has  previously  been issued.  Each  Subclass so issued shall be
substantially  in the form set forth in Exhibit A and shall,  on original issue,
be executed  and  delivered  by the  Trustee to the  Certificate  Registrar  for
authentication   and  delivery  in  accordance  with  Section   5.01(a).   Every
Certificate  presented or  surrendered  for exchange by the initial Holder shall
(if so required by the Trustee or the  Certificate  Registrar)  be duly endorsed
by, or be  accompanied  by a written  instrument  of  transfer  attached to such
Certificate  and shall be completed to the  satisfaction  of the Trustee and the
Certificate  Registrar  duly  executed  by, the  initial  Holder  thereof or his
attorney duly authorized in writing.  The  Certificates of any Subclass of Class
A-V  Certificates  may be transferred  in whole,  but not in part, in accordance
with the provisions of Section 5.02.

                                      -82-
<PAGE>

     Section 5.02   Registration of Transfer and Exchange of Certificates

     (a) The Trustee shall cause to be kept at one of the offices or agencies to
be appointed by the Trustee in accordance  with the provisions of Section 8.12 a
Certificate Register in which, subject 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.  The Trustee is
initially  appointed  Certificate  Registrar  for  the  purpose  of  registering
Certificates and transfers and exchanges of Certificates as herein provided. The
Certificate Registrar,  or the Trustee, shall provide the Master Servicer with a
certified list of Certificateholders as of each Record Date prior to the related
Determination Date.

     (b) Upon surrender for  registration  of transfer of any Certificate at any
office or agency of the Trustee  maintained for such purpose pursuant to Section
8.12 and,  in the case of any Class M, Class B, Class P or Class R  Certificate,
upon  satisfaction of the conditions set forth below,  the Trustee 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 a like
Class (or Subclass) and aggregate Percentage Interest.

     (c) At the option of the Certificateholders,  Certificates may be exchanged
for other Certificates of authorized denominations of a like Class (or Subclass)
and aggregate  Percentage  Interest,  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 and the Certificate Registrar
shall  authenticate  and  deliver  the  Certificates  of such  Class  which  the
Certificateholder  making the exchange is entitled to receive. Every Certificate
presented or  surrendered  for transfer or exchange shall (if so required by the
Trustee or the Certificate  Registrar) be duly endorsed by, or be accompanied by
a written  instrument  of transfer in form  satisfactory  to the Trustee and the
Certificate  Registrar duly executed by, the Holder thereof or his attorney duly
authorized in writing.

     (d) No transfer, sale, pledge or other disposition of a Class B Certificate
or Class P Certificate shall be made unless such transfer, sale, pledge or other
disposition is exempt from the  registration  requirements of the Securities Act
of 1933, as amended,  and any  applicable  state  securities  laws or is made in
accordance  with said Act and laws.  In the event that a  transfer  of a Class B
Certificate or Class P Certificate is to be made either (i)(A) the Trustee shall
require a written  Opinion of Counsel  acceptable  to and in form and  substance
satisfactory  to the  Trustee  and the Company  that such  transfer  may be made
pursuant to an  exemption,  describing  the  applicable  exemption and the basis
therefor, from said Act and laws or is being made pursuant to said Act and laws,
which Opinion of Counsel shall not be an expense of the Trustee,  the Company or
the Master Servicer (except that, if such transfer is made by the Company or the
Master  Servicer or any Affiliate  thereof,  the Company or the Master  Servicer
shall provide such Opinion of Counsel at their own expense);  provided that such
Opinion of Counsel will not be required in connection with the initial  transfer
of any such  Certificate by the Company or any Affiliate  thereof to the Company
or an Affiliate of the Company and (B) the Trustee shall require the  transferee
to execute a representation letter, substantially in the form of Exhibit H (with
respect to any Class B Certificate)  or Exhibit G-1 (with respect to any Class P
Certificate)  hereto,  and the Trustee shall require the transferor to execute a
representation  letter,  substantially  in the form of  Exhibit I  hereto,  each
acceptable  to and in form and  substance  satisfactory  to the

                                      -83-
<PAGE>

Company  and the  Trustee  certifying  to the  Company and the Trustee the facts
surrounding such transfer,  which representation letters shall not be an expense
of the Trustee, the Company or the Master Servicer; PROVIDED, HOWEVER, that such
representation  letters will not be required in connection  with any transfer of
any such  Certificate by the Company or any Affiliate  thereof to the Company or
an Affiliate of the Company,  and the Trustee shall be entitled to  conclusively
rely upon a representation  (which, upon the request of the Trustee,  shall be a
written representation) from the Company, of the status of such transferee as an
Affiliate  of  the  Company  or  (ii)  the  prospective  transferee  of  such  a
Certificate shall be required to provide the Trustee, the Company and the Master
Servicer  with an  investment  letter  substantially  in the form of  Exhibit  J
attached hereto (or such other form as the Company in its sole discretion  deems
acceptable), which investment letter shall not be an expense of the Trustee, the
Company or the Master Servicer,  and which investment  letter states that, among
other  things,  such  transferee  (A) is a  "qualified  institutional  buyer" as
defined  under Rule 144A,  acting for its own  account or the  accounts of other
"qualified  institutional  buyers" as defined under Rule 144A,  and (B) is aware
that the proposed  transferor intends to rely on the exemption from registration
requirements  under the  Securities Act provided by Rule 144A. The Holder of any
such  Certificate  desiring to effect any such transfer,  sale,  pledge or other
disposition shall, and does hereby agree to, indemnify the Trustee, the Company,
the Master Servicer and the Certificate Registrar against any liability that may
result if the transfer, sale, pledge or other disposition is not so exempt or is
not made in accordance with such federal and state laws.

     (e)  (i) In the  case  of any  Class  B,  Class  P,  Class  SB or  Class  R
Certificate presented for registration in the name of any Person, either (A) the
Trustee  shall  require  an Opinion  of  Counsel  acceptable  to and in form and
substance  satisfactory  to the Trustee,  the Company and the Master Servicer to
the effect that the  purchase  and holding of such Class B, Class P, Class SB or
Class R Certificate are permissible under applicable law, will not constitute or
result  in  any  non-exempt  prohibited  transaction  under  Section  406 of the
Employee  Retirement  Income  Security  Act of 1974,  as amended  ("ERISA"),  or
Section  4975  of  the  Code  (or   comparable   provisions  of  any  subsequent
enactments),  and will not  subject  the  Trustee,  the  Company  or the  Master
Servicer to any  obligation or liability  (including  obligations or liabilities
under ERISA or Section 4975 of the Code) in addition to those undertaken in this
Agreement,  which Opinion of Counsel shall not be an expense of the Trustee, the
Company  or the  Master  Servicer  or (B) the  prospective  Transferee  shall be
required to provide the  Trustee,  the  Company and the Master  Servicer  with a
certification  to the  effect  set  forth in  paragraph  six of  Exhibit H (with
respect to any Class B  Certificate)  or paragraph  fifteen of Exhibit G-1 (with
respect to any Class R, Class SB or Class P Certificate),  which the Trustee may
rely upon without further inquiry or investigation, or such other certifications
as the Trustee may deem  desirable or necessary in order to establish  that such
Transferee or the Person in whose name such registration is requested either (a)
is not an  employee  benefit  plan  or  other  plan  subject  to the  prohibited
transaction provisions of ERISA or Section 4975 of the Code (each, a "Plan"), or
any Person  (including,  without  limitation,  an  investment  manager,  a named
fiduciary or a trustee of any Plan) who is using plan assets, within the meaning
of the U.S.  Department of Labor  regulation  promulgated  at 29 C.F.R.  Section
2510.3-101,  as modified by Section  3(42) of ERISA,  of any Plan to effect such
acquisition  (each,  a  "Plan  Investor")  or (b) in the  case  of any  Class  B
Certificate,  the following conditions are satisfied:  (i) such Transferee is an
insurance  company,  (ii) the  source  of funds  used to  purchase  or hold such
Certificate (or any interest therein) is an "insurance  company general account"
(as defined in U.S.  Department of Labor Prohibited  Transaction Class Exemption
("PTCE")  95-60),  and (iii) the  conditions  set forth in Sections I and III of
PTCE 95-60 have been  satisfied  (each entity that  satisfies this clause (b), a
"Complying Insurance Company").

                                      -84-
<PAGE>

          (ii) Any  Transferee of a Class M  Certificate  will be deemed to have
     represented  by virtue of its purchase or holding of such  Certificate  (or
     any interest  therein)  that either (a) such  Transferee is not a Plan or a
     Plan  Investor,  (b) it has  acquired and is holding  such  Certificate  in
     reliance on Prohibited  Transaction  Exemption  ("PTE") 94-29, 59 Fed. Reg.
     14674 (March 29, 1994),  as most recently  amended by PTE 2007-05,  72 Fed.
     Reg. 13130 (March 20, 2007) (the "RFC Exemption"),  and that it understands
     that there are certain  conditions to the availability of the RFC Exemption
     including that such Certificate must be rated, at the time of purchase, not
     lower than "BBB-" (or its equivalent) by Standard & Poor's, Fitch, Moody's,
     DBRS Limited or DBRS, Inc. or (c) such Transferee is a Complying  Insurance
     Company.

          (iii) (A) If any Class M  Certificate  (or any  interest  therein)  is
     acquired  or held by any  Person  that  does  not  satisfy  the  conditions
     described in paragraph (ii) above, then the last preceding  Transferee that
     either (i) is not a Plan or a Plan Investor, (ii) acquired such Certificate
     in compliance  with the RFC  Exemption,  or (iii) is a Complying  Insurance
     Company  shall be restored,  to the extent  permitted by law, to all rights
     and  obligations  as Certificate  Owner thereof  retroactive to the date of
     such  Transfer of such Class M  Certificate.  The Trustee shall be under no
     liability to any Person for making any payments due on such  Certificate to
     such preceding Transferee.

               (B) (C) Any  purported  Certificate  Owner whose  acquisition  or
          holding  of any Class M  Certificate  (or any  interest  therein)  was
          effected in violation  of the  restrictions  in this  Section  5.02(e)
          shall indemnify and hold harmless the Company, the Trustee, the Master
          Servicer,  any  Subservicer,  each Underwriter and the Trust Fund from
          and  against  any and  all  liabilities,  claims,  costs  or  expenses
          incurred by such parties as a result of such acquisition or holding.

          (iv)  Any  Purchaser  of  an  allowable  combination  of  Exchangeable
     Certificates or Exchanged  Certificates  will be deemed to have represented
     by virtue of its purchase and holding of such Certificates (or any interest
     therein)  that either (a) it is not a Plan or a Plan Investor or (b) it has
     acquired and is holding such  Certificates in reliance on the RFC Exemption
     and  that  it  understands  that  there  are  certain   conditions  to  the
     availability of the RFC Exemption  including that such Certificates must be
     rated,  at the  time  of the  exchange,  not  lower  than  "BBB-"  (or  its
     equivalent)  by Standard & Poor's,  Fitch,  Moody's,  DBRS Limited or DBRS,
     Inc.

                                      -85-
<PAGE>

          (v) Any Purchaser of a combination  of  Exchangeable  Certificates  or
     Exchanged  Certificates that is not eligible for exemptive relief under the
     RFC Exemption will be deemed to have  represented by virtue of its purchase
     and holding of such  Certificates (or any interest therein) that either (a)
     it is  not a Plan  or a Plan  Investor;  (b)  it is a  Complying  Insurance
     Company;  or (c) it has  provided  the  Trustee  with an Opinion of Counsel
     acceptable to and in form and substance  satisfactory  to the Trustee,  the
     Company and the Master Servicer to the effect that the purchase and holding
     of such  Certificates  by or on behalf of those  entities  are  permissible
     under  applicable  law,  will not  constitute  or  result  in a  non-exempt
     prohibited  transaction  under  Section 406 of ERISA or Section 4975 of the
     Code (or comparable provisions of any subsequent enactments),  and will not
     subject the Trustee,  the Company and the Master Servicer to any obligation
     or liability  (including  obligations or liabilities under ERISA or Section
     4975 of the Code) in addition to those undertaken in this Agreement,  which
     Opinion of Counsel  shall not be an expense of the Trustee,  the Company or
     the Master Servicer.

     (f) (i) Each Person who has or who  acquires  any  Ownership  Interest in a
Class R Certificate  shall be deemed by the  acceptance or  acquisition  of such
Ownership Interest to have agreed to be bound by the following provisions and to
have  irrevocably  authorized the Trustee or its designee under clause  (iii)(A)
below to deliver  payments to a Person  other than such Person and to  negotiate
the terms of any mandatory  sale under clause  (iii)(B) below and to execute all
instruments of transfer and to do all other things  necessary in connection with
any such sale. The rights of each Person  acquiring any Ownership  Interest in a
Class R Certificate are expressly subject to the following provisions:

          (A) Each Person holding or acquiring any Ownership Interest in a Class
     R 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.

          (B) In connection with any proposed Transfer of any Ownership Interest
     in a Class R  Certificate,  the Trustee shall  require  delivery to it, and
     shall  not  register  the  Transfer  of any Class R  Certificate  until its
     receipt of, (I) an  affidavit  and  agreement (a  "Transfer  Affidavit  and
     Agreement,"  in the form attached  hereto as Exhibit G-1) from the proposed
     Transferee,  in form and  substance  satisfactory  to the Master  Servicer,
     representing  and  warranting,  among other things,  that it is a Permitted
     Transferee,  that it is not acquiring its Ownership Interest in the Class R
     Certificate  that is the  subject of the  proposed  Transfer  as a nominee,
     trustee or agent for any Person who is not a Permitted Transferee, that for
     so long as it retains its Ownership  Interest in a Class R Certificate,  it
     will  endeavor to remain a Permitted  Transferee,  and that it has reviewed
     the provisions of this Section  5.02(f) and agrees to be bound by them, and
     (II) a  certificate,  in the form attached  hereto as Exhibit G-2, from the
     Holder wishing to transfer the Class R  Certificate,  in form and substance
     satisfactory to the Master  Servicer,  representing  and warranting,  among
     other  things,  that no purpose of the  proposed  Transfer is to impede the
     assessment or collection of tax.

                                      -86-
<PAGE>

               (C)  Notwithstanding  the  delivery of a Transfer  Affidavit  and
          Agreement  by a proposed  Transferee  under  clause  (B)  above,  if a
          Responsible  Officer of the Trustee who is assigned to this  Agreement
          has actual  knowledge that the proposed  Transferee is not a Permitted
          Transferee,  no  Transfer  of  an  Ownership  Interest  in a  Class  R
          Certificate to such proposed Transferee shall be effected.

               (D) Each Person holding or acquiring any Ownership  Interest in a
          Class R  Certificate  shall agree (x) to require a Transfer  Affidavit
          and  Agreement  from any other Person to whom such Person  attempts to
          transfer its Ownership  Interest in a Class R Certificate  and (y) not
          to transfer its Ownership Interest unless it provides a certificate to
          the Trustee in the form attached hereto as Exhibit G-2.

               (E) Each Person  holding or acquiring an Ownership  Interest in a
          Class R  Certificate,  by  purchasing  an  Ownership  Interest in such
          Certificate,  agrees to give the Trustee  written  notice that it is a
          "pass-through   interest  holder"  within  the  meaning  of  Temporary
          Treasury  Regulations  Section  1.67-3T(a)(2)(i)(A)  immediately  upon
          acquiring an Ownership Interest in a Class R Certificate, if it is, or
          is holding an Ownership  Interest in a Class R  Certificate  on behalf
          of, a "pass-through interest holder."

     (ii) The Trustee  shall  register the  Transfer of any Class R  Certificate
only  if it  shall  have  received  the  Transfer  Affidavit  and  Agreement,  a
certificate of the Holder  requesting  such transfer in the form attached hereto
as Exhibit  G-2 and all of such other  documents  as shall have been  reasonably
required by the Trustee as a condition  to such  registration.  Transfers of the
Class R Certificates to Non-United States Persons and Disqualified Organizations
(as defined in Section 860E(e)(5) of the Code) are prohibited.

     (iii) (A) If any Disqualified Organization shall become a holder of a Class
R Certificate,  then the last preceding Permitted  Transferee shall be restored,
to the extent  permitted by law, to all rights and obligations as Holder thereof
retroactive  to the  date of  registration  of  such  Transfer  of such  Class R
Certificate.  If a Non-United  States  Person shall become a holder of a Class R
Certificate,  then the last preceding United States Person shall be restored, to
the extent  permitted by law, to all rights and  obligations  as Holder  thereof
retroactive  to the  date of  registration  of  such  Transfer  of such  Class R
Certificate.  If a transfer of a Class R Certificate is disregarded  pursuant to
the provisions of Treasury  Regulations  Section  1.860E-1 or Section  1.860G-3,
then the last preceding  Permitted  Transferee shall be restored,  to the extent
permitted by law, to all rights and obligations as Holder thereof retroactive to
the date of  registration  of such  Transfer  of such Class R  Certificate.  The
Trustee  shall be under no  liability  to any  Person  for any  registration  of
Transfer of a Class R Certificate  that is in fact not permitted by this Section
5.02(f) or for making any payments due on such Certificate to the holder thereof
or for taking any other action with respect to such holder under the  provisions
of this Agreement.

                                      -87-
<PAGE>

               (B) If any purported  Transferee shall become a Holder of a Class
          R Certificate in violation of the restrictions in this Section 5.02(f)
          and to the extent that the  retroactive  restoration  of the rights of
          the Holder of such Class R Certificate as described in clause (iii)(A)
          above  shall be  invalid,  illegal or  unenforceable,  then the Master
          Servicer  shall  have the right,  without  notice to the holder or any
          prior  holder  of such  Class R  Certificate,  to  sell  such  Class R
          Certificate  to a purchaser  selected  by the Master  Servicer on such
          terms as the Master  Servicer may choose.  Such  purported  Transferee
          shall  promptly  endorse  and  deliver  each  Class R  Certificate  in
          accordance  with  the  instructions  of  the  Master  Servicer.   Such
          purchaser  may be the Master  Servicer  itself or any Affiliate of the
          Master  Servicer.  The proceeds of such sale,  net of the  commissions
          (which may include  commissions  payable to the Master Servicer or its
          Affiliates),  expenses and taxes due, if any, shall be remitted by the
          Master Servicer to such purported Transferee. The terms and conditions
          of any sale under this clause (iii)(B) shall be determined in the sole
          discretion of the Master  Servicer,  and the Master Servicer shall not
          be liable to any  Person  having an  Ownership  Interest  in a Class R
          Certificate as a result of its exercise of such discretion.

          (iv) The  Master  Servicer,  on  behalf  of the  Trustee,  shall  make
     available, upon written request from the Trustee, all information necessary
     to compute any tax imposed (A) as a result of the  Transfer of an Ownership
     Interest  in a Class R  Certificate  to any  Person  who is a  Disqualified
     Organization,  including the information  regarding "excess  inclusions" of
     such Class R Certificates  required to be provided to the Internal  Revenue
     Service and certain Persons as described in Treasury  Regulations  Sections
     1.860D-1(b)(5)  and  1.860E-2(a)(5),  and (B) as a result of any  regulated
     investment  company,  real  estate  investment  trust,  common  trust fund,
     partnership, trust, estate or organization described in Section 1381 of the
     Code that holds an Ownership  Interest in a Class R  Certificate  having as
     among its  record  holders  at any time any  Person  who is a  Disqualified
     Organization. Reasonable compensation for providing such information may be
     required by the Master Servicer from such Person.

          (v) The  provisions  of this  Section  5.02(f) set forth prior to this
     clause (v) may be modified,  added to or  eliminated,  provided  that there
     shall have been delivered to the Trustee the following:

               (A) written  notification  from each Rating  Agency to the effect
          that the  modification,  addition to or elimination of such provisions
          will not cause  such  Rating  Agency  to  downgrade  its  then-current
          ratings,  if any,  of any  Class  of the  Senior,  Class M or  Class B
          Certificates below the lower of the then-current  rating or the rating
          assigned to such  Certificates  as of the Closing  Date by such Rating
          Agency; and

                                      -88-
<PAGE>

               (B) subject to Section 10.01(f),  an Officers' Certificate of the
          Master  Servicer  stating  that the Master  Servicer  has  received an
          Opinion of Counsel,  in form and substance  satisfactory to the Master
          Servicer, to the effect that such modification, addition to or absence
          of such  provisions  will not cause any  portion  of any REMIC  formed
          under the  Series  Supplement  to cease to qualify as a REMIC and will
          not  cause  (x) any  portion  of any REMIC  formed  under  the  Series
          Supplement to be subject to an entity-level tax caused by the Transfer
          of  any  Class  R  Certificate  to a  Person  that  is a  Disqualified
          Organization  or  (y) a  Certificateholder  or  another  Person  to be
          subject to a  REMIC-related  tax caused by the  Transfer  of a Class R
          Certificate to a Person that is not a Permitted Transferee.

     (g) No  service  charge  shall  be made for any  transfer  or  exchange  of
Certificates  of any  Class,  but  the  Trustee  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.

     (h) All  Certificates  surrendered  for  transfer  and  exchange  shall  be
destroyed by the Certificate Registrar.

     Section 5.03   Mutilated, Destroyed, Lost or Stolen Certificates

     If  (i)  any  mutilated  Certificate  is  surrendered  to  the  Certificate
Registrar,  or the Trustee and the  Certificate  Registrar  receive  evidence to
their  satisfaction of the destruction,  loss or theft of any  Certificate,  and
(ii) there is  delivered  to the  Trustee  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  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, Class and Percentage Interest but
bearing a number not contemporaneously outstanding. Upon the issuance of any new
Certificate  under this  Section,  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  and the  Certificate  Registrar)  connected  therewith.  Any  duplicate
Certificate  issued  pursuant to this  Section  shall  constitute  complete  and
indefeasible  evidence of ownership in the Trust Fund, as if originally  issued,
whether or not the lost,  stolen or destroyed  Certificate shall be found at any
time.

     Section 5.04   Persons Deemed Owners

     Prior to due  presentation of a Certificate  for  registration of transfer,
the Company,  the Master Servicer,  the Trustee,  any Certificate  Insurer,  the
Certificate  Registrar and any agent of the Company,  the Master  Servicer,  the
Trustee,  any  Certificate  Insurer or the  Certificate  Registrar may treat the
Person  in  whose  name  any  Certificate  is  registered  as the  owner of such
Certificate for the purpose of receiving  distributions pursuant to Section 4.02
and for all other purposes  whatsoever,  except as and to the extent provided in
the  definition  of  "Certificateholder,"  and neither the  Company,  the Master
Servicer,  the Trustee, any Certificate

                                      -89-
<PAGE>

Insurer,  the  Certificate  Registrar  nor any agent of the Company,  the Master
Servicer,  the Trustee,  any Certificate  Insurer or the  Certificate  Registrar
shall be  affected  by notice to the  contrary  except as  provided  in  Section
5.02(f).

     Section 5.05   Appointment of Paying Agent

     The  Trustee  may  appoint  a  Paying  Agent  for  the  purpose  of  making
distributions to the  Certificateholders  pursuant to Section 4.02. In the event
of any  such  appointment,  on or  prior to each  Distribution  Date the  Master
Servicer on behalf of the Trustee  shall  deposit or cause to be deposited  with
the Paying Agent a sum sufficient to make the payments to the Certificateholders
in the amounts and in the manner  provided for in Section  4.02,  such sum to be
held in trust for the benefit of the Certificateholders.

     The Trustee  shall  cause each  Paying  Agent to execute and deliver to the
Trustee an  instrument  in which such Paying  Agent shall agree with the Trustee
that such  Paying  Agent  will hold all sums held by it for the  payment  to the
Certificateholders in trust for the benefit of the  Certificateholders  entitled
thereto  until such sums shall be paid to such  Certificateholders.  Any sums so
held by such Paying Agent shall be held only in Eligible  Accounts to the extent
such sums are not distributed to the  Certificateholders  on the date of receipt
by such Paying Agent.

     Section 5.06   U.S.A. Patriot Act Compliance

     In order for it to comply with its duties under the U.S.A. Patriot Act, the
Trustee may obtain and verify certain information from the other parties hereto,
including but not limited to such parties' name,  address and other  identifying
information.

     Section 5.07   Exchangeable Certificates

     As provided in Section 5.07 of the Series Supplement.

                                   ARTICLE VI

                       THE COMPANY AND THE MASTER SERVICER

     Section 6.01  Respective Liabilities of the Company and the Master Servicer

     The  Company  and the Master  Servicer  shall each be liable in  accordance
herewith only to the extent of the  obligations  specifically  and  respectively
imposed upon and undertaken by the Company and the Master  Servicer  herein.  By
way of  illustration  and not  limitation,  the  Company  is not  liable for the
servicing  and  administration  of the  Mortgage  Loans,  nor is it obligated by
Section 7.01 or Section 10.01 to assume any  obligations of the Master  Servicer
or to appoint a designee  to assume such  obligations,  nor is it liable for any
other  obligation  hereunder that it may, but is not obligated to, assume unless
it elects to assume such obligation in accordance herewith.

                                      -90-
<PAGE>

     Section 6.02   Merger  or  Consolidation  of  the  Company  or  the  Master
                    Servicer;  Assignment of Rights and Delegation of Duties  by
                    Master Servicer

     (a) The Company and the Master  Servicer shall each keep in full effect its
existence,  rights and franchises as a corporation or limited liability company,
respectively,  under the laws of the state of its incorporation or formation, as
applicable,  and shall each obtain and preserve its qualification to do business
as a foreign  company in each  jurisdiction  in which such  qualification  is or
shall be necessary to protect the validity and enforceability of this Agreement,
the  Certificates  or any of the  Mortgage  Loans and to perform its  respective
duties under this Agreement.

     (b) Any Person into which the Company or the Master  Servicer may be merged
or converted or with which it may be consolidated,  or any Person resulting from
any  merger,  conversion  or  consolidation  to which the  Company or the Master
Servicer  shall be a party,  or any Person  succeeding  to the  business  of the
Company or the Master  Servicer,  shall be the  successor  of the Company or the
Master Servicer, as the case may be, hereunder,  without the execution or filing
of any  paper  or any  further  act on the  part of any of the  parties  hereto,
anything in this  Section  6.02(b) to the  contrary  notwithstanding;  PROVIDED,
HOWEVER,  that the successor or surviving Person to the Master Servicer shall be
qualified to service  mortgage loans on behalf of Fannie Mae or Freddie Mac; and
PROVIDED further that the Master Servicer (or the Company,  as applicable) shall
notify  each  Rating  Agency and the  Trustee  in  writing  of any such  merger,
conversion or consolidation at least 30 days prior to the effective date of such
event.

     (c) Notwithstanding  anything else in this Section 6.02 and Section 6.04 to
the contrary,  the Master Servicer may assign its rights and delegate its duties
and obligations  under this Agreement;  provided that the Person  accepting such
assignment  or  delegation  shall be a  Person  which is  qualified  to  service
mortgage   loans  on  behalf  of  Fannie  Mae  or  Freddie  Mac,  is  reasonably
satisfactory to the Trustee and the Company,  is willing to service the Mortgage
Loans and executes and delivers to the Company and the Trustee an agreement,  in
form and substance reasonably satisfactory to the Company and the Trustee, which
contains an  assumption by such Person of the due and punctual  performance  and
observance  of each  covenant  and  condition to be performed or observed by the
Master Servicer under this Agreement; provided further that each Rating Agency's
rating of the Classes of Certificates that have been rated in effect immediately
prior to such  assignment  and  delegation  will not be  qualified,  reduced  or
withdrawn  as a result of such  assignment  and  delegation  (as  evidenced by a
letter  to such  effect  from  each  Rating  Agency).  In the  case of any  such
assignment  and  delegation,  the Master  Servicer  shall be  released  from its
obligations  under this Agreement,  except that the Master Servicer shall remain
liable for all  liabilities  and  obligations  incurred by it as Master Servicer
hereunder  prior to the  satisfaction  of the conditions to such  assignment and
delegation set forth in the next preceding sentence. This Section 6.02 shall not
apply to any sale, transfer,  pledge or assignment by Residential Funding of the
Call Rights.

                                      -91-
<PAGE>

     Section 6.03   Limitation on Liability of the Company,  the Master Servicer
                    and Others

     Neither  the  Company,  the  Master  Servicer  nor  any of  the  directors,
officers,  employees  or agents of the Company or the Master  Servicer  shall be
under any liability to the Trust Fund or the  Certificateholders  for any action
taken or for refraining  from the taking of any action in good faith pursuant to
this  Agreement,  or for  errors  in  judgment;  PROVIDED,  HOWEVER,  that  this
provision shall not protect the Company,  the Master Servicer or any such Person
against any breach of warranties or  representations or covenants made herein or
any liability which would otherwise be imposed by reason of willful misfeasance,
bad  faith or gross  negligence  in the  performance  of  duties or by reason of
reckless disregard of obligations and duties hereunder.  The Company, the Master
Servicer  and any  director,  officer,  employee  or agent of the Company or the
Master  Servicer  may rely in good faith on any document of any kind prima facie
properly  executed and submitted by any Person  respecting  any matters  arising
hereunder. The Company, the Master Servicer and any director,  officer, employee
or agent of the Company or the Master Servicer shall be indemnified by the Trust
Fund 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 related to any specific Mortgage Loan
or  Mortgage  Loans  (except as any such  loss,  liability  or expense  shall be
otherwise  reimbursable  pursuant to this Agreement) and any loss,  liability or
expense incurred by reason of willful misfeasance, bad faith or gross negligence
in the  performance  of duties  hereunder or by reason of reckless  disregard of
obligations and duties hereunder.

     Neither the Company nor the Master  Servicer  shall be under any obligation
to  appear  in,  prosecute  or  defend  any  legal  or  administrative   action,
proceeding,  hearing or  examination  that is not  incidental to its  respective
duties  under this  Agreement  and which in its  opinion  may  involve it in any
expense or liability; PROVIDED, HOWEVER, that the Company or the Master Servicer
may  in its  discretion  undertake  any  such  action,  proceeding,  hearing  or
examination that it may deem necessary or desirable in respect to this Agreement
and the  rights  and  duties of the  parties  hereto  and the  interests  of the
Certificateholders  hereunder.  In such event,  the legal  expenses and costs of
such action,  proceeding,  hearing or  examination  and any liability  resulting
therefrom  shall be expenses,  costs and  liabilities of the Trust Fund, and the
Company and the Master Servicer shall be entitled to be reimbursed  therefor out
of amounts  attributable  to the  Mortgage  Loans on  deposit  in the  Custodial
Account as provided by Section 3.10 and, on the Distribution  Date(s)  following
such reimbursement,  the aggregate of such expenses and costs shall be allocated
in reduction of the Accrued Certificate  Interest on each Class entitled thereto
in the same  manner as if such  expenses  and  costs  constituted  a  Prepayment
Interest Shortfall.

     Section 6.04   Company and Master Servicer Not to Resign

     Subject to the  provisions  of Section  6.02,  neither  the Company nor the
Master  Servicer shall resign from its respective  obligations and duties hereby
imposed on it except upon  determination that its duties hereunder are no longer
permissible  under  applicable  law.  Any  such  determination   permitting  the
resignation  of the  Company or the Master  Servicer  shall be  evidenced  by an
Opinion of Counsel to such effect delivered to the Trustee.  No such resignation
by the Master  Servicer shall become  effective until the Trustee or a successor
servicer  shall  have  assumed  the  Master  Servicer's   responsibilities   and
obligations in accordance with Section 7.02.

                                      -92-
<PAGE>

                                   ARTICLE VII

                                     DEFAULT

     Section 7.01   Events of Default

     Event of Default,  wherever  used  herein,  means any one of the  following
events  (whatever  reason  for such  Event of  Default  and  whether it shall be
voluntary or  involuntary  or be effected by operation of law or pursuant to any
judgment,  decree or order of any court or any order,  rule or regulation of any
administrative or governmental body):

          (i) the  Master  Servicer  shall  fail to  distribute  or  cause to be
     distributed to the Holders of  Certificates  of any Class any  distribution
     required to be made under the terms of the  Certificates  of such Class and
     this Agreement and, in either case, such failure shall continue  unremedied
     for a period of 5 days  after the date upon  which  written  notice of such
     failure,  requiring  such failure to be remedied,  shall have been given to
     the  Master  Servicer  by the  Trustee  or  the  Company  or to the  Master
     Servicer,  the Company and the  Trustee by the Holders of  Certificates  of
     such Class evidencing  Percentage Interests  aggregating not less than 25%;
     or

          (ii) the  Master  Servicer  shall  fail to  observe  or perform in any
     material  respect any other of the  covenants or  agreements on the part of
     the Master Servicer  contained in the  Certificates of any Class or in this
     Agreement and such failure  shall  continue  unremedied  for a period of 30
     days  (except that such number of days shall be 15 in the case of a failure
     to pay the premium for any  Required  Insurance  Policy)  after the date on
     which written  notice of such  failure,  requiring the same to be remedied,
     shall have been given to the Master Servicer by the Trustee or the Company,
     or to the Master  Servicer,  the  Company and the Trustee by the Holders of
     Certificates  of any  Class  evidencing,  in the  case of any  such  Class,
     Percentage Interests aggregating not less than 25%; or

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

          (iv)  the  Master  Servicer  shall  consent  to the  appointment  of a
     conservator or receiver or liquidator in any  insolvency,  readjustment  of
     debt, marshalling of assets and liabilities,  or similar proceedings of, or
     relating   to,  the  Master   Servicer  or  of,  or  relating  to,  all  or
     substantially all of the property of the Master Servicer; or

                                      -93-
<PAGE>

          (v) the Master  Servicer  shall admit in writing its  inability to pay
     its debts  generally as they become due, file a petition to take  advantage
     of, or  commence a voluntary  case  under,  any  applicable  insolvency  or
     reorganization   statute,  make  an  assignment  for  the  benefit  of  its
     creditors, or voluntarily suspend payment of its obligations; or

          (vi) the Master Servicer shall notify the Trustee  pursuant to Section
     4.04(b) that it is unable to deposit in the  Certificate  Account an amount
     equal to the Advance.

     If an Event of Default  described in clauses  (i)-(v) 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,  either the Company or the Trustee may, and at the
direction  of Holders  of  Certificates  entitled  to at least 51% of the Voting
Rights,  the Trustee shall,  by notice in writing to the Master Servicer (and to
the Company if given by the Trustee or to the Trustee if given by the  Company),
terminate all of the rights and  obligations  of the Master  Servicer under this
Agreement and in and to the Mortgage Loans and the proceeds thereof,  other than
its rights as a Certificateholder hereunder. If an Event of Default described in
clause (vi) hereof  shall  occur,  the  Trustee  shall,  by notice to the Master
Servicer  and  the  Company,   immediately  terminate  all  of  the  rights  and
obligations  of the  Master  Servicer  under  this  Agreement  and in and to the
Mortgage  Loans  and  the  proceeds   thereof,   other  than  its  rights  as  a
Certificateholder  hereunder  as  provided in Section  4.04(b).  On or after the
receipt by the Master Servicer of such written  notice,  all authority and power
of the  Master  Servicer  under  this  Agreement,  whether  with  respect to the
Certificates  (other  than  as a  Holder  thereof)  or  the  Mortgage  Loans  or
otherwise, shall subject to Section 7.02 pass to and be vested in the Trustee or
the  Trustee's  designee  appointed  pursuant  to  Section  7.02;  and,  without
limitation,  the  Trustee is hereby  authorized  and  empowered  to execute  and
deliver, on behalf of the Master Servicer, as attorney-in-fact or otherwise, any
and all documents and other instruments,  and to do or accomplish all other acts
or things  necessary  or  appropriate  to effect the  purposes of such notice of
termination,  whether to complete the transfer and  endorsement or assignment of
the Mortgage  Loans and related  documents,  or otherwise.  The Master  Servicer
agrees to cooperate with the Trustee in effecting the  termination of the Master
Servicer's responsibilities and rights hereunder, including, without limitation,
the transfer to the Trustee or its designee for administration by it of all cash
amounts  which  shall at the time be credited  to the  Custodial  Account or the
Certificate  Account or  thereafter  be received  with  respect to the  Mortgage
Loans. No such  termination  shall release the Master Servicer for any liability
that it would  otherwise  have  hereunder  for any act or omission  prior to the
effective time of such termination.

     Notwithstanding any termination of the activities of Residential Funding in
its capacity as Master Servicer hereunder, Residential Funding shall be entitled
to receive,  out of any late  collection of a Monthly Payment on a Mortgage Loan
which was due prior to the notice terminating  Residential  Funding's rights and
obligations as Master  Servicer  hereunder and received after such notice,  that
portion to which  Residential  Funding  would  have been  entitled  pursuant  to
Sections  3.10(a)(ii),  (vi) and (vii) as well as its  Servicing  Fee in respect
thereof,  and any other amounts  payable to  Residential  Funding  hereunder the
entitlement to which arose prior to the termination of its activities hereunder.
Upon the termination of Residential Funding as

                                      -94-
<PAGE>

Master Servicer hereunder the Company shall deliver to the Trustee a copy of the
Program Guide.

     Section 7.02   Trustee or Company to Act; Appointment of Successor

     (a) On and  after  the time  the  Master  Servicer  receives  a  notice  of
termination pursuant to Section 7.01 or resigns in accordance with Section 6.04,
the Trustee or, upon notice to the Company and with the Company's consent (which
shall not be  unreasonably  withheld) a designee  (which meets the standards set
forth  below) of the  Trustee,  shall be the  successor  in all  respects to the
Master  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 Master
Servicer (except for the  responsibilities,  duties and liabilities contained in
Sections 2.02 and 2.03(a),  excluding the duty to notify related Subservicers or
Sellers as set forth in such Sections, and its obligations to deposit amounts in
respect of losses incurred prior to such notice or termination on the investment
of funds  in the  Custodial  Account  or the  Certificate  Account  pursuant  to
Sections  3.07(c) and  4.01(b) by the terms and  provisions  hereof);  PROVIDED,
HOWEVER,  that any failure to perform such duties or responsibilities  caused by
the  preceding  Master  Servicer's  failure to provide  information  required by
Section  4.04 shall not be  considered  a default by the Trustee  hereunder.  As
compensation  therefor,  the Trustee shall be entitled to all funds  relating to
the Mortgage Loans which the Master  Servicer would have been entitled to charge
to the Custodial  Account or the Certificate  Account if the Master Servicer had
continued to act  hereunder  and, in  addition,  shall be entitled to the income
from any Permitted  Investments  made with amounts  attributable to the Mortgage
Loans held in the Custodial Account or the Certificate  Account.  If the Trustee
has become the successor to the Master  Servicer in accordance with Section 6.04
or Section 7.01, then notwithstanding the above, the Trustee may, if it shall be
unwilling to so act, or shall, if it is unable to so act, appoint, or petition a
court of competent  jurisdiction to appoint,  any  established  housing and home
finance  institution,  which  is  also a  Fannie  Mae- or  Freddie  Mac-approved
mortgage servicing institution,  having a net worth of not less than $10,000,000
as the successor to the Master  Servicer  hereunder in the  assumption of all or
any part of the  responsibilities,  duties or liabilities of the Master Servicer
hereunder.  Pending appointment of a successor to the Master Servicer hereunder,
the Trustee shall become  successor to the Master Servicer and shall 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 Mortgage  Loans as it and such  successor  shall
agree;  PROVIDED,  HOWEVER, that no such compensation shall be in excess of that
permitted the initial Master Servicer hereunder.  The Company,  the Trustee, the
Custodian  and such  successor  shall  take such  action,  consistent  with this
Agreement,  as  shall be  necessary  to  effectuate  any  such  succession.  The
Servicing  Fee for any  successor  Master  Servicer  appointed  pursuant to this
Section 7.02 will be lowered with respect to those Mortgage Loans, if any, where
the Subservicing Fee accrues at a rate of less than 0.20% per annum in the event
that the successor Master Servicer is not servicing such Mortgage Loans directly
and it is necessary to raise the related Subservicing Fee to a rate of 0.20% per
annum in order to hire a Subservicer  with respect to such Mortgage  Loans.  The
Master  Servicer shall pay the reasonable  expenses of the Trustee in connection
with any servicing transition hereunder.

                                      -95-
<PAGE>

     (b) In  connection  with  the  termination  or  resignation  of the  Master
Servicer  hereunder,  either (i) the successor  Master  Servicer,  including the
Trustee if the Trustee is acting as successor Master  Servicer,  shall represent
and  warrant  that it is a member of MERS in good  standing  and shall  agree to
comply  in all  material  respects  with the  rules  and  procedures  of MERS in
connection  with the servicing of the Mortgage  Loans that are  registered  with
MERS, in which case the  predecessor  Master  Servicer shall  cooperate with the
successor  Master  Servicer in causing MERS to revise its records to reflect the
transfer of servicing to the successor  Master Servicer as necessary under MERS'
rules and regulations,  or (ii) the predecessor  Master Servicer shall cooperate
with the  successor  Master  Servicer in causing  MERS to execute and deliver an
assignment of Mortgage in recordable  form to transfer the Mortgage from MERS to
the Trustee and to execute and deliver such other  notices,  documents and other
instruments  as may be  necessary  or  desirable  to effect a  transfer  of such
Mortgage Loan or servicing of such  Mortgage  Loan on the MERS(R)  System to the
successor Master Servicer.  The predecessor  Master Servicer shall file or cause
to be  filed  any such  assignment  in the  appropriate  recording  office.  The
predecessor  Master  Servicer  shall  bear any and all  fees of  MERS,  costs of
preparing  any  assignments  of  Mortgage,  and fees and  costs  of  filing  any
assignments  of Mortgage  that may be required  under this  subSection  (b). The
successor  Master  Servicer  shall cause such  assignment to be delivered to the
Trustee or the Custodian  promptly upon receipt of the original with evidence of
recording  thereon or a copy certified by the public  recording  office in which
such assignment was recorded.

     Section 7.03   Notification to Certificateholders

     (a) Upon any such  termination  or appointment of a successor to the Master
Servicer,   the  Trustee  shall  give  prompt  written  notice  thereof  to  the
Certificateholders  at their respective  addresses  appearing in the Certificate
Register.

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

     Section 7.04   Waiver of Events of Default

     The Holders  representing  at least 66% of the Voting Rights  affected by a
default  or Event of  Default  hereunder  may  waive  such  default  or Event of
Default; PROVIDED,  HOWEVER, that (a) a default or Event of Default under clause
(i) of Section  7.01 may be waived  only by all of the  Holders of  Certificates
affected by such default or Event of Default and (b) no waiver  pursuant to this
Section 7.04 shall affect the Holders of Certificates in the manner set forth in
Section  11.01(b)(i)  or (ii).  Upon any such  waiver of a  default  or Event of
Default by the Holders  representing  the requisite  percentage of Voting Rights
affected by such  default or Event of Default,  such default or Event of Default
shall cease to exist and shall be deemed to have been remedied for every purpose
hereunder.  No such waiver shall extend to any  subsequent  or other  default or
Event of  Default or impair any right  consequent  thereon  except to the extent
expressly so waived.

                                      -96-
<PAGE>

                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

     Section 8.01   Duties of Trustee

     (a) The Trustee,  prior to the  occurrence of an Event of Default and after
the  curing  or  waiver  of all  Events  of  Default  which  may have  occurred,
undertakes to perform such duties and only such duties as are  specifically  set
forth in this Agreement. In case an Event of Default has occurred (which has not
been cured or waived),  the Trustee shall exercise such of the rights and powers
vested  in it by this  Agreement,  and use the same  degree of care and skill in
their  exercise  as  a  prudent   investor  would  exercise  or  use  under  the
circumstances in the conduct of such investor's own affairs.

     (b) 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.  The Trustee  shall notify the
Certificateholders  of any such documents which do not materially conform to the
requirements  of  this  Agreement  in the  event  that  the  Trustee,  after  so
requesting, does not receive satisfactorily corrected documents.

     The Trustee shall forward or cause to be forwarded in a timely  fashion the
notices, reports and statements required to be forwarded by the Trustee pursuant
to Sections 4.03,  4.06,  7.03 and 10.01.  The Trustee shall furnish in a timely
fashion to the Master  Servicer  such  information  as the Master  Servicer  may
reasonably  request  from time to time for the Master  Servicer  to fulfill  its
duties as set forth in this Agreement.  The Trustee covenants and agrees that it
shall perform its obligations hereunder in a manner so as to maintain the status
of any portion of any REMIC formed under the Series  Supplement as a REMIC under
the REMIC Provisions and (subject to Section 10.01(f)) to prevent the imposition
of any federal, state or local income,  prohibited transaction,  contribution or
other tax on the Trust  Fund to the  extent  that  maintaining  such  status and
avoiding  such taxes are  reasonably  within the  control of the Trustee and are
reasonably within the scope of its duties under this Agreement.

     (c) 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) Prior to the occurrence of an Event of Default, and after the
          curing  or  waiver  of all  such  Events  of  Default  which  may have
          occurred,   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

                                      -97-
<PAGE>

          to the  Trustee by the  Company or the  Master  Servicer  and which on
          their face, do not contradict the requirements of this Agreement;

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

               (iii) The Trustee shall not be personally  liable with respect to
          any action taken,  suffered or omitted to be taken by it in good faith
          in accordance  with the direction of  Certificateholders  of any Class
          holding  Certificates  which  evidence,  as to such Class,  Percentage
          Interests  aggregating  not less than 25% as to the time,  method  and
          place of conducting  any  proceeding  for any remedy  available to the
          Trustee,  or exercising any trust or power conferred upon the Trustee,
          under this Agreement;

               (iv) The  Trustee  shall not be  charged  with  knowledge  of any
          default (other than a default in payment to the Trustee)  specified in
          clauses  (i) and (ii) of  Section  7.01 or an Event of  Default  under
          clauses  (iii),  (iv) and (v) of  Section  7.01  unless a  Responsible
          Officer of the Trustee  assigned to and working in the Corporate Trust
          Office  obtains  actual  knowledge  of such  failure  or  event or the
          Trustee  receives  written  notice  of such  failure  or  event at its
          Corporate  Trust Office from the Master  Servicer,  the Company or any
          Certificateholder; and

               (v) Except to the extent  provided in Section  7.02, no provision
          in this Agreement  shall require the Trustee to expend or risk its own
          funds (including,  without  limitation,  the making of any Advance) or
          otherwise incur any personal financial liability in the performance of
          any of its duties as Trustee  hereunder,  or in the exercise of any of
          its rights or powers, if the Trustee shall have reasonable grounds for
          believing that repayment of funds or adequate  indemnity  against such
          risk or liability is not reasonably assured to it.

     (d) The Trustee shall timely pay, from its own funds, the amount of any and
all  federal,  state and local taxes  imposed on the Trust Fund or its assets or
transactions including, without limitation, (A) "prohibited transaction" penalty
taxes as defined in Section 860F of the Code,  if, when and as the same shall be
due and payable,  (B) any tax on contributions to a REMIC after the Closing Date
imposed  by  Section  860G(d)  of the Code and (C) any tax on "net  income  from
foreclosure  property"  as defined in Section  860G(c) of the Code,  but only if
such taxes  arise out of a breach by the Trustee of its  obligations  hereunder,
which breach constitutes negligence or willful misconduct of the Trustee.

     (e)  Notwithstanding  anything to the contrary  contained  herein or in any
related Custodial Agreement, in no event shall the Trustee have any liability in
respect of any actions or omissions of the  Custodian  herein or pursuant to any
related Custodial Agreement.

     Section 8.02   Certain Matters Affecting the Trustee

     (a) Except as otherwise provided in Section 8.01:

                                      -98-
<PAGE>

          (i) The  Trustee  may  rely  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;

          (ii) The Trustee may consult  with  counsel 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 Opinion of Counsel;

          (iii) The Trustee  shall be under no obligation to exercise any of the
     trusts 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 against the costs,  expenses and
     liabilities  which may be incurred  therein or thereby;  nothing  contained
     herein  shall,  however,  relieve the Trustee of the  obligation,  upon the
     occurrence of an Event of Default (which has not been cured or waived),  to
     exercise such of the rights and powers vested in it by this Agreement,  and
     to use the same  degree  of care and skill in their  exercise  as a prudent
     investor  would exercise or use under the  circumstances  in the conduct of
     such investor's own affairs;

          (iv) The Trustee shall not be personally  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 an Event of Default hereunder and after
     the curing or waiver of all Events of Default 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  document,  unless  requested  in  writing  so to do by Holders of
     Certificates  of  any  Class  evidencing,  as  to  such  Class,  Percentage
     Interests,  aggregating not less than 50%; 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
     expense or  liability  as a  condition  to so  proceeding.  The  reasonable
     expense of every such examination shall be paid by the Master Servicer,  if
     an Event of Default shall have occurred and is continuing, and otherwise by
     the Certificateholder requesting the investigation;

          (vi) 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 custodian or nominee, and the Trustee shall not be responsible
     for any misconduct or negligence on the part of, or for the supervision of,
     any such agent,  attorney,  custodian or nominee appointed with due care by
     it hereunder; and

                                      -99-
<PAGE>

          (vii) To the  extent  authorized  under  the Code and the  regulations
     promulgated  thereunder,  each  Holder  of a  Class  R  Certificate  hereby
     irrevocably  appoints and authorizes the Trustee to be its attorney-in-fact
     for  purposes of signing any Tax Returns  required to be filed on behalf of
     the Trust  Fund.  The  Trustee  shall  sign on behalf of the Trust Fund and
     deliver to the Master Servicer in a timely manner any Tax Returns  prepared
     by or on behalf of the Master Servicer that the Trustee is required to sign
     as determined by the Master Servicer pursuant to applicable federal,  state
     or local tax laws,  provided that the Master  Servicer shall  indemnify the
     Trustee for signing any such Tax Returns that contain errors or omissions.

     (b)  Following  the  issuance of the  Certificates,  the Trustee  shall not
accept any  contribution  of assets to the Trust Fund unless (subject to Section
10.01(f)) it shall have obtained or been furnished with an Opinion of Counsel to
the effect  that such  contribution  will not (i) cause any portion of any REMIC
formed  under the  Series  Supplement  to fail to qualify as a REMIC at any time
that any Certificates are outstanding or (ii) cause the Trust Fund to be subject
to any federal tax as a result of such contribution (including the imposition of
any federal tax on "prohibited  transactions"  imposed under Section  860F(a) of
the Code).

     Section 8.03   Trustee Not Liable for Certificates or Mortgage Loans

     The  recitals  contained  herein and in the  Certificates  (other  than the
execution of the  Certificates and relating to the acceptance and receipt of the
Mortgage  Loans) shall be taken as the  statements  of the Company or the Master
Servicer 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   (except  that  the
Certificates  shall be duly and  validly  executed  and  authenticated  by it as
Certificate  Registrar) or of any Mortgage Loan or related document,  or of MERS
or the MERS(R) System.  Except as otherwise  provided herein,  the Trustee shall
not be  accountable  for the use or  application  by the  Company  or the Master
Servicer of any of the Certificates or of the proceeds of such Certificates,  or
for the use or  application  of any  funds  paid to the  Company  or the  Master
Servicer in respect of the Mortgage  Loans or deposited in or withdrawn from the
Custodial  Account  or the  Certificate  Account  by the  Company  or the Master
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  with the  same  rights  it would  have if it were not
Trustee.

     Section 8.05   Master   Servicer  to  Pay  Trustee's   Fees  and  Expenses;
                    Indemnification

     (a) The Master Servicer  covenants and agrees to pay to the Trustee and any
co-trustee  from  time to time,  and the  Trustee  and any  co-trustee  shall be
entitled  to,  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 each of them 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 any co-trustee, and the Master Servicer will pay or
reimburse  the  Trustee  and any  co-trustee  upon  request  for all  reasonable
expenses, disbursements and advances

                                      -100-
<PAGE>

incurred or made by the Trustee or any co-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,  and the  expenses  incurred by the  Trustee or any  co-trustee  in
connection with the appointment of an office or agency pursuant to Section 8.12)
except  any  such  expense,  disbursement  or  advance  as may  arise  from  its
negligence or bad faith.

     (b) The Master  Servicer  agrees to indemnify  the Trustee for, and to hold
the Trustee harmless  against,  any loss,  liability or expense incurred without
negligence or willful  misconduct on its part,  arising out of, or in connection
with, the acceptance and  administration of the Trust Fund,  including the costs
and expenses (including  reasonable legal fees and expenses) of defending itself
against any claim in connection  with the exercise or  performance of any of its
powers or duties  under this  Agreement,  and the  Custodial  Agreement  and the
Master  Servicer  further  agrees to indemnify  the Trustee for, and to hold the
Trustee harmless against,  any loss,  liability or expense arising out of, or in
connection with, the provisions set forth in Section 2.01(a) hereof,  including,
without limitation,  all costs,  liabilities and expenses (including  reasonable
legal fees and  expenses) of  investigating  and  defending  itself  against any
claim, action or proceeding,  pending or threatened,  relating to the provisions
of such paragraph, provided that:

          (i) with respect to any such claim,  the Trustee  shall have given the
     Master  Servicer  written notice  thereof  promptly after the Trustee shall
     have actual knowledge thereof;

          (ii) while maintaining control over its own defense, the Trustee shall
     cooperate  and consult  fully with the Master  Servicer in  preparing  such
     defense; and

          (iii) notwithstanding  anything in this Agreement to the contrary, the
     Master  Servicer  shall not be liable  for  settlement  of any claim by the
     Trustee entered into without the prior consent of the Master Servicer which
     consent shall not be unreasonably withheld.

     No termination of this Agreement  shall affect the  obligations  created by
this Section  8.05(b) of the Master  Servicer to indemnify the Trustee under the
conditions and to the extent set forth herein.

     Notwithstanding the foregoing,  the indemnification  provided by the Master
Servicer in this Section 8.05(b) shall not pertain to (A) any loss, liability or
expense of the Trustee,  including  the costs and  expenses of defending  itself
against any claim,  incurred in connection with any actions taken by the Trustee
at the  direction  of the  Certificateholders  pursuant  to the  terms  of  this
Agreement  or (B) the extent the  Trustee is required  to  indemnify  the Master
Servicer pursuant to Section 12.05(a).

     Section 8.06   Eligibility Requirements for Trustee

     The Trustee  hereunder  shall at all times be a  corporation  or a national
banking  association  having its principal office in a state and city acceptable
to the Company and organized and doing  business under the laws of such state or
the United States of America, authorized under such

                                      -101-
<PAGE>

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 the short-term  rating of such  institution  shall be A-1 in
the case of Standard & Poor's if Standard & Poor's is a Rating  Agency.  If such
corporation or national banking  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 the
combined  capital  and  surplus  of such  corporation  shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so  published.  In case at any time the  Trustee  shall  cease to be eligible in
accordance  with the  provisions  of this  Section,  the  Trustee  shall  resign
immediately in the manner and with the effect specified in Section 8.07.

     Section 8.07   Resignation and Removal of the Trustee

     (a) The Trustee may at any time  resign and be  discharged  from the trusts
hereby  created by giving  written  notice thereof to the Company and the Master
Servicer. Upon receiving such notice of resignation,  the Company 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 have
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.

     (b) 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  Company,  or if at any time the Trustee  shall  become
incapable of acting, or shall be adjudged  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, then the Company may
remove the Trustee and 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.  In addition,  in the event that
the Company determines that the Trustee has failed (i) to distribute or cause to
be distributed to the  Certificateholders  any amount required to be distributed
hereunder, if such amount is held by the Trustee or its Paying Agent (other than
the Master  Servicer  or the  Company)  for  distribution  or (ii) to  otherwise
observe or perform in any material  respect any of its covenants,  agreements or
obligations  hereunder,  and such failure shall continue unremedied for a period
of 5 days (in respect of clause (i) above) or 30 days (in respect of clause (ii)
above),  other than any failure to comply with the provisions of Article XII, in
which  case no notice or grace  period  shall be  applicable)  after the date on
which written notice of such failure, requiring that the same be remedied, shall
have been given to the Trustee by the  Company,  then the Company may remove the
Trustee and  appoint a  successor  trustee by written  instrument  delivered  as
provided in the preceding  sentence.  In connection  with the  appointment  of a
successor trustee pursuant to the preceding  sentence,  the Company shall, on or
before the date on which any such  appointment  becomes  effective,  obtain from
each  Rating  Agency  written  confirmation  that  the  appointment  of any such
successor  trustee will not result in the  reduction of the ratings on any class
of the Certificates  below the lesser of the then current or original ratings on
such Certificates.

                                      -102-
<PAGE>

     (c) 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 instruments
shall be delivered  to the  Company,  one complete set to the Trustee so removed
and one complete set to the successor so appointed.

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

     Section 8.08   Successor Trustee

     (a) Any  successor  trustee  appointed  as provided  in Section  8.07 shall
execute,  acknowledge and deliver to the Company and to its 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  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  predecessor
trustee shall deliver to the successor  trustee all Custodial  Files and related
documents and statements held by it hereunder (other than any Custodial Files at
the time held by a  Custodian,  which  shall  become the agent of any  successor
trustee  hereunder),  and the Company,  the Master  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.

     (b) No  successor  trustee  shall  accept  appointment  as provided in this
Section unless at the time of such  acceptance  such successor  trustee shall be
eligible under the provisions of Section 8.06.

     (c) Upon  acceptance of appointment  by a successor  trustee as provided in
this Section,  the Company  shall mail notice of the  succession of such trustee
hereunder  to all Holders of  Certificates  at their  addresses  as shown in the
Certificate  Register.  If the Company  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 Company.

     Section 8.09   Merger or Consolidation of Trustee

     Any corporation or national banking  association into which the Trustee may
be merged or converted or with which it may be  consolidated  or any corporation
or  national  banking  association  resulting  from any  merger,  conversion  or
consolidation  to which the  Trustee  shall be a party,  or any  corporation  or
national banking association succeeding to the business of the Trustee, shall be
the successor of the Trustee  hereunder,  provided such  corporation or national
banking  association  shall be eligible  under the  provisions  of Section 8.06,
without the  execution  or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding.  The
Trustee  shall  mail  notice  of  any  such  merger  or   consolidation  to  the
Certificateholders at their address as shown in the Certificate Register.

                                      -103-
<PAGE>

     Section 8.10   Appointment of Co-Trustee or Separate Trustee

     (a)  Notwithstanding  any other  provisions  hereof,  at any time,  for the
purpose of meeting any legal  requirements of any jurisdiction in which any part
of the Trust Fund or property securing the same may at the time be located,  the
Master  Servicer and the Trustee  acting  jointly shall have the power and shall
execute and deliver all  instruments to appoint one or more Persons  approved by
the Trustee to act as co-trustee or  co-trustees,  jointly with the Trustee,  or
separate trustee or separate trustees, of all or any part of the Trust Fund, and
to vest in such Person or  Persons,  in such  capacity,  such title to the Trust
Fund, or any part thereof,  and, subject to the other provisions of this Section
8.10, such powers, duties, obligations, rights and trusts as the Master Servicer
and the Trustee may consider  necessary  or  desirable.  If the Master  Servicer
shall not have joined in such appointment within 15 days after the receipt by it
of a request so to do, or in case an Event of Default shall have occurred and be
continuing, the Trustee alone shall have the power to make such appointment.  No
co-trustee or separate trustee  hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 8.06 hereunder and no notice to
Holders  of  Certificates  of  the  appointment  of  co-trustee(s)  or  separate
trustee(s) shall be required under Section 8.08 hereof.

     (b) In the case of any  appointment  of a  co-trustee  or separate  trustee
pursuant  to this  Section  8.10 all  rights,  powers,  duties  and  obligations
conferred  or imposed  upon the Trustee  shall be  conferred or imposed upon and
exercised or performed by the Trustee,  and such separate  trustee or co-trustee
jointly,  except to the extent that under any law of any  jurisdiction  in which
any particular act or acts are to be performed  (whether as Trustee hereunder or
as successor to the Master Servicer hereunder), the Trustee shall be incompetent
or unqualified to perform such act or acts, in which event such rights,  powers,
duties and obligations  (including the holding of title to the Trust Fund or any
portion  thereof in any such  jurisdiction)  shall be exercised and performed by
such separate trustee or co-trustee at the direction of the Trustee.

     (c) 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.

     (d) 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.

                                      -104-
<PAGE>

     Section 8.11   Appointment of Custodians

     The Trustee may,  with the consent of the Master  Servicer and the Company,
or shall, at the direction of the Company and the Master  Servicer,  appoint one
or more Custodians who are not Affiliates of the Company, the Master Servicer or
any  Seller to hold all or a  portion  of the  Custodial  Files as agent for the
Trustee,  by entering into a Custodial  Agreement.  Subject to Article VIII, the
Trustee agrees to comply with the terms of each Custodial Agreement with respect
to the Custodial  Files and to enforce the terms and provisions  thereof against
the Custodian for the benefit of the Certificateholders. Each Custodian shall be
a depository  institution  subject to supervision by federal or state authority,
shall have a combined  capital and surplus of at least  $15,000,000 and shall be
qualified  to do business in the  jurisdiction  in which it holds any  Custodial
File.  Each Custodial  Agreement,  with respect to the Custodial  Files,  may be
amended  only as  provided  in  Section  11.01.  The  Trustee  shall  notify the
Certificateholders of the appointment of any Custodian (other than the Custodian
appointed as of the Closing Date) pursuant to this Section 8.11.

     Section 8.12   Appointment of Office or Agency

     The Trustee will  maintain an office or agency in the United  States at the
address  designated in Section 11.05 of the Series Supplement where Certificates
may be surrendered for  registration  of transfer or exchange.  The Trustee will
maintain  an  office  at the  address  stated  in  Section  11.05 of the  Series
Supplement  where  notices and demands to or upon the Trustee in respect of this
Agreement may be served.

                                   ARTICLE IX

              TERMINATION OR OPTIONAL PURCHASE OF ALL CERTIFICATES

     Section 9.01   Optional   Purchase   by   the   Master   Servicer   of  All
                    Certificates;   Termination  Upon  Purchase  by  the  Master
                    Servicer or Liquidation of All Mortgage Loans

     (a)   Subject   to   Section   9.02,   the   respective   obligations   and
responsibilities  of the Company,  the Master  Servicer and the Trustee  created
hereby in respect of the Certificates  (other than the obligation of the Trustee
to make certain payments after the Final Distribution Date to Certificateholders
and the  obligation of the Company to send certain  notices as  hereinafter  set
forth) shall  terminate upon the last action required to be taken by the Trustee
on the Final Distribution Date pursuant to this Article IX following the earlier
of:

          (i) the  later  of the  final  payment  or other  liquidation  (or any
     Advance with respect  thereto) of the last Mortgage  Loan  remaining in the
     Trust Fund or the disposition of all property  acquired upon foreclosure or
     deed in lieu of foreclosure of any Mortgage Loan, or

                                      -105-
<PAGE>

          (ii) the purchase by the Master Servicer of all Mortgage Loans and all
     property  acquired in respect of any Mortgage  Loan  remaining in the Trust
     Fund at a price  equal  to 100% of the  unpaid  principal  balance  of each
     Mortgage  Loan or, if less than such  unpaid  principal  balance,  the fair
     market value of the related underlying  property of such Mortgage Loan with
     respect to Mortgage  Loans as to which title has been acquired if such fair
     market  value is less  than such  unpaid  principal  balance  on the day of
     repurchase plus accrued  interest thereon at the Mortgage Rate (or Modified
     Mortgage Rate in the case of any Modified  Mortgage Loan) from the Due Date
     to which interest was last paid by the Mortgagor to, but not including, the
     first  day of the  month in which  such  repurchase  price is  distributed,
     provided, however, that in no event shall the trust created hereby continue
     beyond (i) the Maturity  Date or (ii) the  expiration  of 21 years from the
     death of the last survivor of the  descendants  of Joseph P.  Kennedy,  the
     late  ambassador of the United States to the Court of St. James,  living on
     the date hereof and  provided  further  that the  purchase  price set forth
     above shall be  increased  as is  necessary,  as  determined  by the Master
     Servicer,  to avoid  disqualification  of any  portion of any REMIC  formed
     under the Series  Supplement  as a REMIC.  The  purchase  price paid by the
     Master  Servicer shall also include any amounts owed by the Master Servicer
     pursuant  to  Section  4 of the  Assignment  Agreement  in  respect  of any
     liability,   penalty  or  expense  that  resulted  from  a  breach  of  the
     representation  and warranty set forth in clause (xii) or (xxxviii) of such
     Section that remain unpaid on the date of such purchase.

     The right of the Master  Servicer to  purchase  all the assets of the Trust
Fund pursuant to clause (ii) above is conditioned upon the Pool Stated Principal
Balance  as  of  the  Final   Distribution  Date,  prior  to  giving  effect  to
distributions to be made on such Distribution  Date, being less than ten percent
of the Cut-off Date Principal  Balance of the Mortgage  Loans.  If such right is
exercised  by the Master  Servicer,  the Master  Servicer  shall be  entitled to
reimbursement for the full amount of any unreimbursed  Advances theretofore made
by it with respect to the Mortgage  Loans pursuant to Section 3.10. In addition,
the Master Servicer shall provide to the Trustee the  certification  required by
Section 3.15 and the Trustee and any Custodian shall, promptly following payment
of the  purchase  price,  release to the Master  Servicer  the  Custodial  Files
pertaining to the Mortgage Loans being purchased.

     In addition to the foregoing,  on any  Distribution  Date on which the Pool
Stated Principal Balance,  prior to giving effect to distributions to be made on
such  Distribution  Date, is less than ten percent of the Cut off Date Principal
Balance of the Mortgage Loans,  the Master Servicer shall have the right, at its
option, to purchase the Certificates in whole, but not in part, at a price equal
to the outstanding  Certificate  Principal Balance of such Certificates plus the
sum of Accrued  Certificate  Interest  thereon for the related  Interest Accrual
Period and any previously unpaid Accrued Certificate Interest.

     (b) The Master Servicer shall give the Trustee not less than 40 days' prior
notice of the  Distribution  Date on which the Master Servicer  anticipates that
the final distribution will be made to  Certificateholders  (whether as a result
of the  exercise by  Residential  Funding of its right to purchase the assets of
the Trust Fund or otherwise) or on which the Master  Servicer  anticipates  that
the  Certificates  will be purchased (as a result of the exercise by Residential
Funding of its right to purchase the  outstanding  Certificates).  Notice of any
termination,  specifying the anticipated Final Distribution Date (which shall be
a date that would otherwise be

                                      -106-
<PAGE>

a  Distribution  Date) upon which the  Certificateholders  may  surrender  their
Certificates  to the Trustee (if so required by the terms hereof) for payment of
the  final  distribution  and  cancellation  or notice  of any  purchase  of the
outstanding  Certificates  shall be given  promptly by the Master  Servicer  (if
Residential  Funding is exercising its right to purchase the assets of the Trust
Fund or to purchase  the  outstanding  Certificates),  or by the Trustee (in any
other case) by letter.  Such notice shall be prepared by the Master Servicer (in
the case of Residential  Funding  exercising its right to purchase the assets of
the Trust Fund or to purchase the outstanding  Certificates)  or the Trustee (in
any other case) and mailed by the Trustee to the  Certificateholders not earlier
than the 15th day and not later  than the 25th day of the month  next  preceding
the month of such final distribution specifying:

          (i) the anticipated  Final  Distribution Date upon which final payment
     of the  Certificates  is  anticipated  to be  made  upon  presentation  and
     surrender of  Certificates  at the office or agency of the Trustee  therein
     designated where required pursuant to this Agreement or, in the case of the
     purchase  by the  Master  Servicer  of the  outstanding  Certificates,  the
     Distribution Date on which such purchase is to be made,

          (ii) the  amount  of any  such  final  payment,  or in the case of the
     purchase of the  outstanding  Certificates,  the purchase  price, in either
     case, if known, and

          (iii) that the Record Date otherwise  applicable to such  Distribution
     Date is not applicable and that payment will be made only upon presentation
     and  surrender of the  Certificates  at the office or agency of the Trustee
     therein specified.

     If the Master Servicer is obligated to give notice to Certificateholders as
aforesaid,  it shall give such notice to the  Certificate  Registrar at the time
such  notice is given to  Certificateholders  and,  if  Residential  Funding  is
exercising  its rights to purchase  the  outstanding  Certificates,  Residential
Funding  shall give such notice to each Rating Agency at the time such notice is
given to Certificateholders.  As a result of the exercise by Residential Funding
of its  right to  purchase  the  assets  of the  Trust  Fund or the  outstanding
Certificates,  Residential Funding shall deposit in the Custodial Account before
the Final  Distribution  Date in immediately  available funds an amount equal to
the purchase price for the assets of the Trust Fund, computed as provided above.

     (c)  Upon   presentation   and  surrender  of  the   Certificates   by  the
Certificateholders  thereof  in  connection  with the  exercise  by  Residential
Funding of its right to purchase the Certificates,  the Trustee shall distribute
to the  Certificateholders on the Final Distribution Date the respective amounts
determined in accordance with Section 4.02. Notwithstanding the reduction of the
Certificate Principal Balance of any Class of Subordinate  Certificates to zero,
such Class will be outstanding hereunder until the termination of the respective
obligations  and  responsibilities  of the Company,  the Master Servicer and the
Trustee hereunder in accordance with Article IX.

                                      -107-
<PAGE>

     (d) If any  Certificateholders  shall not surrender their  Certificates for
final payment and cancellation on or before the Final  Distribution  Date (if so
required by the terms hereof), the Trustee shall on such date cause all funds in
the   Certificate   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 Master  Servicer  (if  Residential
Funding  exercised  its right to purchase the assets of the Trust Fund),  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 six months after the
second notice any Certificate  shall not have been surrendered for cancellation,
the Trustee shall take  appropriate  steps as directed by the Master Servicer to
contact  the  remaining   Certificateholders   concerning   surrender  of  their
Certificates.  The costs and expenses of  maintaining  the escrow account and of
contacting  Certificateholders  shall be paid out of the assets  which remain in
the  escrow  account.  If  within  nine  months  after  the  second  notice  any
Certificates shall not have been surrendered for cancellation, the Trustee shall
pay to the Master Servicer all amounts  distributable to the holders thereof and
the Master Servicer shall thereafter hold such amounts until distributed to such
Holders. No interest shall accrue or be payable to any  Certificateholder on any
amount held in the escrow account or by the Master  Servicer as a result of such
Certificateholder's  failure to surrender its  Certificate(s)  for final payment
thereof in accordance with this Section 9.01.

     (e) If any  Certificateholders  do not surrender  their  Certificates on or
before the Distribution Date on which a purchase of the outstanding Certificates
is to be made,  the Trustee  shall on such date cause all funds in the Custodial
Account deposited therein by Residential  Funding pursuant to Section 9.01(b) to
be  withdrawn  therefrom  and  deposited  in a separate  escrow  account for the
benefit of such Certificateholders,  and the Master Servicer shall give a second
written notice to such  Certificateholders  to surrender their  Certificates for
payment of the purchase  price  therefor.  If within six months after the second
notice any Certificate  shall not have been  surrendered for  cancellation,  the
Trustee  shall take  appropriate  steps as  directed  by the Master  Servicer to
contact  the  Holders  of  such  Certificates   concerning  surrender  of  their
Certificates.  The costs and expenses of  maintaining  the escrow account and of
contacting  Certificateholders  shall be paid out of the assets  which remain in
the  escrow  account.  If  within  nine  months  after  the  second  notice  any
Certificates shall not have been surrendered for cancellation in accordance with
this  Section  9.01,  the Trustee  shall pay to the Master  Servicer all amounts
distributable  to the Holders thereof and the Master  Servicer shall  thereafter
hold such amounts until distributed to such Holders. No interest shall accrue or
be payable to any  Certificateholder on any amount held in the escrow account or
by the  Master  Servicer  as a result  of such  Certificateholder's  failure  to
surrender its  Certificate(s)  for payment in accordance with this Section 9.01.
Any  Certificate  that is not  surrendered on the  Distribution  Date on which a
purchase  pursuant to this Section 9.01 occurs as provided  above will be deemed
to have been  purchased  and the Holder as of such date will have no rights with
respect  thereto  except to receive the purchase  price therefor minus any costs
and expenses associated with such escrow account and notices allocated thereto.

                                      -108-
<PAGE>

     (f) All rights of  Residential  Funding to purchase the assets of the Trust
Fund, or to purchase specified classes of Certificates,  as set forth in Section
9.01(a) are referred to in this Agreement as the "Call Rights".  Notwithstanding
any other provision of this Agreement,  Residential Funding shall have the right
to sell, transfer, pledge or otherwise assign the Call Rights at any time to any
Person. Upon written notice by Residential Funding to the Trustee and the Master
Servicer of any such assignment of the Call Rights to any assignee,  the Trustee
and the Master  Servicer  shall be obligated to recognize  such  assignee as the
holder  of the Call  Rights.  Such  entity,  if not  Residential  Funding  or an
affiliate,  shall be deemed to  represent,  at the time of such sale,  transfer,
pledge or other  assignment,  that one of the following will be, and at the time
the Call Right is exercised is, true and correct:  (i) the exercise of such Call
Right shall not result in a non-exempt prohibited  transaction under Section 406
of ERISA or Section 4975 of the Code (including by reason of U.S.  Department of
Labor ("DOL")  Prohibited  Transaction  Class Exemption  ("PTCE") 75-1 (Part I),
84-14, 90-1, 91-38,  95-60 or 96-23 or other applicable  exemption) or (ii) such
entity  is (A) not a party  in  interest  under  Section  3(14)  of  ERISA  or a
disqualified  person under  Section  4975(e)(2)  of the Code with respect to any
employee  benefit  plan  subject to Section 406 of ERISA or any plan  subject to
Section 4975 of the Code (other than an employee  benefit plan or plan sponsored
or  maintained by the entity,  provided that no assets of such employee  benefit
plan or plan are invested or deemed to be invested in the  Certificates) and (B)
not  a  "benefit  plan  investor"  as  described  in  DOL   regulation   Section
2510.3-101(f)(2) and as modified by Section 3(42) of ERISA. If any such assignee
of the Call  Right is  unable  to  exercise  such  Call  Right by  reason of the
preceding  sentence,  then  the  Call  Right  shall  revert  to the  immediately
preceding assignor of such Call Right subject to the rights of any secured party
therein.

     Section 9.02   Additional Termination Requirements

     (a) Each  REMIC  that  comprises  the Trust  Fund  shall be  terminated  in
accordance  with the  following  additional  requirements,  unless  (subject  to
Section  10.01(f)) the Trustee and the Master  Servicer have received an Opinion
of Counsel  (which Opinion of Counsel shall not be an expense of the Trustee) to
the effect that the  failure of each such REMIC to comply with the  requirements
of this Section 9.02 will not (i) result in the  imposition on the Trust Fund of
taxes on "prohibited transactions," as described in Section 860F of the Code, or
(ii)  cause any such  REMIC to fail to  qualify  as a REMIC at any time that any
Certificate is outstanding:

          (i) The Master  Servicer shall establish a 90-day  liquidation  period
     for each such REMIC and specify the first day of such period in a statement
     attached  to the  Trust  Fund's  final  Tax  Return  pursuant  to  Treasury
     regulations Section 1.860F-1. The Master Servicer also shall satisfy all of
     the requirements of a qualified  liquidation for a REMIC under Section 860F
     of the Code and regulations thereunder;

          (ii) The Master Servicer shall notify the Trustee at the  commencement
     of such 90-day liquidation period and, at or prior to the time of making of
     the final payment on the Certificates,  the Trustee shall sell or otherwise
     dispose of all of the remaining assets of the Trust Fund in accordance with
     the terms hereof; and

                                      -109-
<PAGE>

          (iii) If Residential Funding or the Company is exercising its right to
     purchase the assets of the Trust Fund,  Residential  Funding shall,  during
     the 90-day  liquidation  period  and at or prior to the Final  Distribution
     Date, purchase all of the assets of the Trust Fund for cash.

     (b)  Each  Holder  of a  Certificate  and the  Trustee  hereby  irrevocably
approves  and appoints the Master  Servicer as its  attorney-in-fact  to adopt a
plan of complete  liquidation for each REMIC at the expense of the Trust Fund in
accordance with the terms and conditions of this Agreement.

     Section 9.03   Termination of Multiple REMICs

     If the REMIC Administrator makes two or more separate REMIC elections,  the
applicable  REMIC shall be terminated  on the earlier of the Final  Distribution
Date and the date on which it is deemed to receive the last deemed distributions
on the related  Uncertificated REMIC Regular Interests and the last distribution
due on the Certificates is made.

                                   ARTICLE X

                                REMIC PROVISIONS

     Section 10.01  REMIC Administration

     (a) The REMIC  Administrator shall make an election to treat the Trust Fund
as one or more REMICs under the Code and, if necessary,  under  applicable state
law.  The assets of each such REMIC will be set forth in the Series  Supplement.
Such  election  will be made on Form 1066 or other  appropriate  federal  tax or
information return (including Form 8811) or any appropriate state return for the
taxable  year  ending  on the  last  day of  the  calendar  year  in  which  the
Certificates  are issued.  For the purposes of each REMIC election in respect of
the Trust Fund,  Certificates  and  interests to be  designated  as the "regular
interests"  and the sole class of "residual  interests" in the REMIC will be set
forth in Section 10.03 of the Series Supplement. The REMIC Administrator and the
Trustee shall not permit the creation of any "interests"  (within the meaning of
Section  860G of the Code) in any REMIC  elected  in  respect  of the Trust Fund
other than the "regular interests" and "residual interests" so designated.

     (b) The Closing Date is hereby designated as the "startup day" of the Trust
Fund within the meaning of Section 860G(a)(9) of the Code.

     (c) The REMIC Administrator shall hold a Class R Certificate representing a
0.01%  Percentage  Interest each Class of the Class R Certificates  and shall be
designated as "the tax matters  person" with respect to each REMIC in the manner
provided under Treasury regulations Section 1.860F-4(d) and Treasury regulations
Section 301.6231(a)(7)-1.  The REMIC Administrator, as tax matters person, shall
(i) act on behalf of each REMIC in  relation  to any tax  matter or  controversy
involving the Trust Fund and (ii) represent the Trust Fund in any

                                      -110-
<PAGE>

administrative or judicial proceeding relating to an examination or audit by any
governmental  taxing  authority  with  respect  thereto.   The  legal  expenses,
including without  limitation  attorneys' or accountants' fees, and costs of any
such proceeding and any liability  resulting  therefrom shall be expenses of the
Trust  Fund and the  REMIC  Administrator  shall be  entitled  to  reimbursement
therefor out of amounts  attributable  to the  Mortgage  Loans on deposit in the
Custodial  Account as provided by Section  3.10 unless such legal  expenses  and
costs are incurred by reason of the REMIC  Administrator's  willful misfeasance,
bad faith or gross  negligence.  If the  REMIC  Administrator  is no longer  the
Master Servicer  hereunder,  at its option the REMIC  Administrator may continue
its duties as REMIC Administrator and shall be paid reasonable  compensation not
to exceed  $3,000 per year by any  successor  Master  Servicer  hereunder for so
acting as the REMIC Administrator.

     (d) The REMIC  Administrator  shall  prepare or cause to be prepared all of
the Tax Returns  that it  determines  are  required  with  respect to each REMIC
created hereunder and deliver such Tax Returns in a timely manner to the Trustee
and the  Trustee  shall sign and file such Tax Returns in a timely  manner.  The
expenses of  preparing  such returns  shall be borne by the REMIC  Administrator
without any right of reimbursement  therefor.  The REMIC Administrator agrees to
indemnify  and hold  harmless  the Trustee  with respect to any tax or liability
arising  from the  Trustee's  signing  of Tax  Returns  that  contain  errors or
omissions.  The Trustee and Master  Servicer  shall  promptly  provide the REMIC
Administrator with such information as the REMIC  Administrator may from time to
time request for the purpose of enabling the REMIC  Administrator to prepare Tax
Returns.

     (e) The REMIC  Administrator shall provide (i) to any Transferor of a Class
R Certificate  such  information as is necessary for the  application of any tax
relating  to the  transfer of a Class R  Certificate  to any Person who is not a
Permitted Transferee,  (ii) to the Trustee, and the Trustee shall forward to the
Certificateholders,  such  information or reports as are required by the Code or
the REMIC  Provisions  including  reports  relating to interest,  original issue
discount and market  discount or premium (using the Prepayment  Assumption)  and
(iii) to the Internal  Revenue  Service the name,  title,  address and telephone
number of the person who will serve as the representative of each REMIC.

     (f) The Master Servicer and the REMIC Administrator shall take such actions
and shall  cause  each  REMIC  created  hereunder  to take such  actions  as are
reasonably within the Master Servicer's or the REMIC Administrator's control and
the scope of its duties more specifically set forth herein as shall be necessary
or  desirable  to  maintain  the status of each REMIC as a REMIC under the REMIC
Provisions  (and the  Trustee  shall  assist the Master  Servicer  and the REMIC
Administrator, to the extent reasonably requested by the Master Servicer and the
REMIC  Administrator to do so). The Master Servicer and the REMIC  Administrator
shall not knowingly or  intentionally  take any action,  cause the Trust Fund to
take any  action  or fail to take (or fail to  cause  to be  taken)  any  action
reasonably within their respective control that, under the REMIC Provisions,  if
taken or not taken,  as the case may be,  could (i)  endanger  the status of any
portion  of any REMIC  formed  under the  Series  Supplement  as a REMIC or (ii)
result in the imposition of a tax upon any such REMIC (including but not limited
to the tax on prohibited  transactions  as defined in Section  860F(a)(2) of the
Code and the tax on contributions to a REMIC set forth in Section 860G(d) of the
Code)  (either  such  event,  in the  absence  of an  Opinion  of Counsel or the
indemnification referred to in this sentence, an

                                      -111-
<PAGE>

"Adverse REMIC Event") unless the Master Servicer or the REMIC Administrator, as
applicable,  has  received  an Opinion of Counsel  (at the  expense of the party
seeking to take such action or, if such party fails to pay such expense, and the
Master  Servicer or the REMIC  Administrator,  as  applicable,  determines  that
taking  such  action  is in  the  best  interest  of  the  Trust  Fund  and  the
Certificateholders,  at the  expense of the Trust  Fund,  but in no event at the
expense of the Master Servicer,  the REMIC  Administrator or the Trustee) to the
effect that the contemplated action will not, with respect to each REMIC created
hereunder,  endanger  such  status or,  unless the  Master  Servicer,  the REMIC
Administrator or both, as applicable,  determine in its or their sole discretion
to indemnify the Trust Fund against the imposition of such a tax,  result in the
imposition of such a tax.  Wherever in this Agreement a contemplated  action may
not be taken because the timing of such action might result in the imposition of
a tax on the Trust Fund, or may only be taken  pursuant to an Opinion of Counsel
that such  action  would not  impose a tax on the Trust  Fund,  such  action may
nonetheless be taken provided that the indemnity given in the preceding sentence
with respect to any taxes that might be imposed on the Trust Fund has been given
and  that all  other  preconditions  to the  taking  of such  action  have  been
satisfied. The Trustee shall not take or fail to take any action (whether or not
authorized   hereunder)   as  to  which  the  Master   Servicer   or  the  REMIC
Administrator,  as applicable, has advised it in writing that it has received an
Opinion of Counsel to the effect  that an Adverse  REMIC  Event could occur with
respect to such action. In addition,  prior to taking any action with respect to
any REMIC created  hereunder or any related assets thereof,  or causing any such
REMIC to take any action,  which is not expressly  permitted  under the terms of
this  Agreement,  the Trustee will consult with the Master Servicer or the REMIC
Administrator,  as  applicable,  or its  designee,  in writing,  with respect to
whether such action could cause an Adverse  REMIC Event to occur with respect to
any such REMIC, and the Trustee shall not take any such action or cause any such
REMIC to take any such  action  as to which  the  Master  Servicer  or the REMIC
Administrator,  as  applicable,  has advised it in writing that an Adverse REMIC
Event  could  occur.  The  Master  Servicer  or  the  REMIC  Administrator,   as
applicable,  may consult with counsel to make such written advice,  and the cost
of same shall be borne by the party  seeking  to take the  action not  expressly
permitted  by this  Agreement,  but in no event  at the  expense  of the  Master
Servicer  or the REMIC  Administrator.  At all times as may be  required  by the
Code, the Master Servicer will to the extent within its control and the scope of
its duties more specifically set forth herein, maintain substantially all of the
assets of each REMIC created  hereunder as  "qualified  mortgages" as defined in
Section 860G(a)(3) of the Code and "permitted investments" as defined in Section
860G(a)(5) of the Code.

     (g) In the event that any tax is imposed on  "prohibited  transactions"  of
any REMIC  created  hereunder as defined in Section  860F(a)(2)  of the Code, on
"net income from  foreclosure  property" of any such REMIC as defined in Section
860G(c) of the Code,  on any  contributions  to any such REMIC after the Startup
Day  therefor  pursuant  to  Section  860G(d)  of the Code,  or any other tax is
imposed  by the Code or any  applicable  provisions  of state or local tax laws,
such tax shall be charged (i) to the Master Servicer,  if such tax arises out of
or results from a breach by the Master Servicer of any of its obligations  under
this Agreement or the Master Servicer has in its sole  discretion  determined to
indemnify  the Trust Fund  against such tax,  (ii) to the  Trustee,  if such tax
arises out of or results from a breach by the Trustee of any of its  obligations
under  this  Article  X, or (iii)  otherwise  against  amounts on deposit in the
Custodial  Account as provided by Section 3.10 and on the  Distribution  Date(s)
following such reimbursement the aggregate of such

                                      -112-
<PAGE>

taxes shall be allocated in  reduction  of the Accrued  Certificate  Interest on
each Class  entitled  thereto in the same manner as if such taxes  constituted a
Prepayment Interest Shortfall.

     (h) The  Trustee and the Master  Servicer  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 or as  otherwise  may be
required by the REMIC Provisions.

     (i) Following the Startup Day,  neither the Master Servicer nor the Trustee
shall accept any  contributions of assets to any REMIC created  hereunder unless
(subject to Section  10.01(f))  the Master  Servicer and the Trustee  shall have
received an Opinion of Counsel (at the expense of the party seeking to make such
contribution) to the effect that the inclusion of such assets in such REMIC will
not  cause  the  REMIC  to fail to  qualify  as a REMIC  at any  time  that  any
Certificates  are  outstanding  or subject  the REMIC to any tax under the REMIC
Provisions or other  applicable  provisions  of federal,  state and local law or
ordinances.

     (j) Neither the Master  Servicer nor the Trustee shall  (subject to Section
10.01(f)) enter into any  arrangement by which any REMIC created  hereunder will
receive a fee or other  compensation  for  services nor permit any such REMIC to
receive any income from assets other than  "qualified  mortgages"  as defined in
Section 860G(a)(3) of the Code or "permitted  investments" as defined in Section
860G(a)(5) of the Code.

     (k) Solely for the purposes of Section  1.860G-1(a)(4)(iii) of the Treasury
Regulations,  the  "latest  possible  maturity  date" by which  the  Certificate
Principal  Balance of each Class of  Certificates  (other than the Interest Only
Certificates)  representing a regular  interest in the applicable  REMIC and the
Uncertificated  Principal Balance of each Uncertificated  REMIC Regular Interest
(other than each  Uncertificated  REMIC Regular Interest  represented by a Class
A-V  Certificate,  if any) and the rights to the Interest Only  Certificates and
Uncertificated  REMIC Regular Interest  represented by any Class A-V Certificate
would be  reduced to zero is the  Maturity  Date for each such  Certificate  and
Interest.

     (l) Within 30 days after the Closing Date,  the REMIC  Administrator  shall
prepare  and file with the  Internal  Revenue  Service  Form 8811,  "Information
Return for Real  Estate  Mortgage  Investment  Conduits  (REMIC)  and Issuers of
Collateralized Debt Obligations" for each REMIC created hereunder.

     (m) Neither the Trustee nor the Master  Servicer shall sell,  dispose of or
substitute  for any of the Mortgage  Loans  (except in  connection  with (i) the
default,  imminent default or foreclosure of a Mortgage Loan,  including but not
limited to, the acquisition or sale of a Mortgaged  Property acquired by deed in
lieu of foreclosure,  (ii) the bankruptcy of any REMIC created hereunder,  (iii)
the  termination  of any such REMIC  pursuant to Article IX of this Agreement or
(iv) a  purchase  of  Mortgage  Loans  pursuant  to  Article  II or III of  this
Agreement) nor acquire any assets for any such REMIC, nor sell or dispose of any
investments  in the Custodial  Account or the  Certificate  Account for gain nor
accept any  contributions to any such REMIC after the Closing Date unless it has
received  an Opinion of Counsel  that such sale,  disposition,  substitution  or
acquisition will not (a) affect adversely the status of such REMIC as a REMIC or
(b)  unless  the  Master  Servicer  has  determined  in its sole  discretion  to
indemnify the

                                      -113-
<PAGE>

Trust  Fund  against  such  tax,  cause  such  REMIC to be  subject  to a tax on
"prohibited transactions" or "contributions" pursuant to the REMIC Provisions.

     Section 10.02  Master    Servicer,    REMIC   Administrator   and   Trustee
                    Indemnification

     (a) The Trustee agrees to indemnify the Trust Fund, the Company,  the REMIC
Administrator and the Master Servicer for any taxes and costs including, without
limitation,  any  reasonable  attorneys fees imposed on or incurred by the Trust
Fund,  the  Company  or the  Master  Servicer,  as a result  of a breach  of the
Trustee's covenants set forth in Article VIII or this Article X.

     (b) The  REMIC  Administrator  agrees to  indemnify  the  Trust  Fund,  the
Company, the Master Servicer and the Trustee for any taxes and costs (including,
without  limitation,  any reasonable  attorneys' fees) imposed on or incurred by
the Trust Fund, the Company,  the Master Servicer or the Trustee, as a result of
a breach of the REMIC Administrator's covenants set forth in this Article X with
respect to compliance with the REMIC Provisions,  including without  limitation,
any penalties  arising from the Trustee's  execution of Tax Returns  prepared by
the REMIC  Administrator  that contain errors or omissions;  PROVIDED,  HOWEVER,
that such liability will not be imposed to the extent such breach is a result of
an error or omission in information  provided to the REMIC  Administrator by the
Master Servicer in which case Section 10.02(c) will apply.

     (c) The Master  Servicer  agrees to indemnify the Trust Fund,  the Company,
the REMIC  Administrator  and the  Trustee  for any taxes and costs  (including,
without  limitation,  any reasonable  attorneys' fees) imposed on or incurred by
the Trust Fund, the Company, the REMIC Administrator or the Trustee, as a result
of a breach of the Master Servicer's covenants set forth in this Article X or in
Article III with  respect to  compliance  with the REMIC  Provisions,  including
without  limitation,  any penalties arising from the Trustee's  execution of Tax
Returns prepared by the Master Servicer that contain errors or omissions.

     Section 10.03  Designation of REMIC(s)

     As provided in Section 10.03 of the Series Supplement.

     Section 10.04  Distributions  on the  Uncertificated  REMIC I and REMIC II
                    Regular Interests

     As provided in Section 10.04 of the Series Supplement.

     Section 10.05  Compliance with Withholding Requirements

     As provided in Section 10.05 of the Series Supplement.

                                      -114-
<PAGE>

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

     Section 11.01  Amendment

     (a) This  Agreement or any Custodial  Agreement may be amended from time to
time by the Company, the Master Servicer and the Trustee, without the consent of
any of the Certificateholders:

          (i) to cure any ambiguity,

          (ii) to correct or supplement any provisions herein or therein,  which
     may be  inconsistent  with any other  provisions  herein or  therein  or to
     correct any error,

          (iii) to modify,  eliminate  or add to any of its  provisions  to such
     extent as shall be necessary or desirable to maintain the  qualification of
     the Trust Fund as a REMIC at all times that any  Certificate is outstanding
     or to avoid or minimize the risk of the  imposition of any tax on the Trust
     Fund  pursuant  to the Code that would be a claim  against  the Trust Fund,
     provided  that the Trustee has received an Opinion of Counsel to the effect
     that  (A)  such  action  is  necessary   or  desirable  to  maintain   such
     qualification  or to avoid or minimize  the risk of the  imposition  of any
     such tax and (B) such  action  will not  adversely  affect in any  material
     respect the interests of any Certificateholder,

          (iv) to change the timing and/or nature of deposits into the Custodial
     Account  or the  Certificate  Account  or to  change  the name in which the
     Custodial Account is maintained,  provided that (A) the Certificate Account
     Deposit Date shall in no event be later than the related Distribution Date,
     (B) such change shall not, as evidenced by an Opinion of Counsel, adversely
     affect in any material respect the interests of any  Certificateholder  and
     (C) such change shall not result in a reduction  of the rating  assigned to
     any Class of Certificates below the lower of the then-current rating or the
     rating  assigned to such  Certificates as of the Closing Date, as evidenced
     by a letter from each Rating Agency to such effect,

          (v) to modify,  eliminate or add to the provisions of Section  5.02(f)
     or  any  other  provision  hereof  restricting  transfer  of  the  Class  R
     Certificates, by virtue of their being the "residual interests" in a REMIC,
     provided  that (A) such change  shall not result in reduction of the rating
     assigned  to  any  such  Class  of  Certificates  below  the  lower  of the
     then-current  rating or the rating assigned to such  Certificates as of the
     Closing  Date,  as  evidenced  by a letter from each Rating  Agency to such
     effect,  and (B) such change  shall not (subject to Section  10.01(f)),  as
     evidenced by an Opinion of Counsel (at the expense of the party  seeking so
     to  modify,  eliminate  or add such  provisions),  cause any REMIC  created
     hereunder or any of the  Certificateholders  (other than the transferor) to
     be subject to a federal  tax caused by a transfer to a Person that is not a
     Permitted Transferee,

                                      -115-
<PAGE>

          (vi) to make any other provisions with respect to matters or questions
     arising under this Agreement or such Custodial Agreement which shall not be
     materially  inconsistent  with the provisions of this  Agreement,  provided
     that such  action  shall  not,  as  evidenced  by an  Opinion  of  Counsel,
     adversely   affect  in  any   material   respect  the   interests   of  any
     Certificateholder, or

          (vii) to amend any provision herein or therein that is not material to
     any of the Certificateholders.

     (b) This Agreement or any Custodial Agreement may also be amended from time
to time by the Company,  the Master Servicer and the Trustee with the consent of
the Holders of Certificates evidencing in the aggregate not less than 66% of the
Percentage Interests of each Class of Certificates with a Certificate  Principal
Balance  greater  than zero  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 such  Custodial  Agreement or of modifying in any manner the
rights of the Holders of Certificates of such Class; PROVIDED,  HOWEVER, that no
such amendment shall:

          (i)  reduce in any  manner  the  amount  of, or delay the  timing  of,
     payments which are required to be distributed  on any  Certificate  without
     the consent of the Holder of such Certificate,

          (ii) reduce the aforesaid  percentage of Certificates of any Class the
     Holders of which are required to consent to any such amendment, in any such
     case without the consent of the Holders of all  Certificates  of such Class
     then outstanding.

     (c) 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  (subject to Section  10.01(f) and at the expense
of the party seeking such  amendment)  to the effect that such  amendment or the
exercise of any power granted to the Master Servicer, the Company or the Trustee
in accordance with such amendment is permitted  hereunder and will not result in
the  imposition  of a federal  tax on the Trust Fund or cause any REMIC  created
under the Series  Supplement  to fail to qualify as a REMIC at any time that any
Certificate is outstanding.

     (d) Promptly  after the  execution of any such  amendment the Trustee shall
furnish written notification of the substance of such amendment to the Custodian
and each  Certificateholder.  It  shall  not be  necessary  for the  consent  of
Certificateholders  under this Section 11.01 to approve the  particular  form of
any proposed amendment, but it shall be sufficient if such consent shall approve
the substance  thereof.  The manner of obtaining such consents and of evidencing
the  authorization  of the  execution  thereof  by  Certificateholders  shall be
subject to such reasonable regulations as the Trustee may prescribe.

                                      -116-
<PAGE>

     (e) The Company shall have the option,  in its sole  discretion,  to obtain
and  deliver  to  the  Trustee  any  corporate  guaranty,   payment  obligation,
irrevocable  letter  of  credit,   surety  bond,  insurance  policy  or  similar
instrument or a reserve  fund,  or any  combination  of the  foregoing,  for the
purpose of protecting the Holders of the Class B Certificates against any or all
Realized Losses or other  shortfalls.  Any such instrument or fund shall be held
by the Trustee for the benefit of the Class B Certificateholders,  but shall not
be and shall not be deemed to be under any  circumstances  included in the Trust
Fund. To the extent that any such instrument or fund  constitutes a reserve fund
for federal income tax purposes, (i) any reserve fund so established shall be an
outside  reserve fund and not an asset of the Trust Fund,  (ii) any such reserve
fund shall be owned by the Company,  and (iii) amounts  transferred by the Trust
Fund to any such  reserve  fund shall be treated as amounts  distributed  by the
Trust Fund to the Company or any  successor,  all within the meaning of Treasury
Regulations  Section  1.860G-2(h)  as  it  reads  as of  the  Cut-off  Date.  In
connection with the provision of any such instrument or fund, this Agreement and
any provision hereof may be modified,  added to, deleted or otherwise amended in
any manner  that is  related or  incidental  to such  instrument  or fund or the
establishment or  administration  thereof,  such amendment to be made by written
instrument  executed or  consented  to by the Company but without the consent of
any  Certificateholder  and without  the  consent of the Master  Servicer or the
Trustee being  required  unless any such  amendment  would impose any additional
obligation  on, or  otherwise  adversely  affect  the  interests  of the  Senior
Certificateholders,  the Class M Certificateholders,  the Master Servicer or the
Trustee,  as applicable;  provided that the Company obtains  (subject to Section
10.01(f))  an Opinion of Counsel  (which  need not be an opinion of  Independent
counsel)  to the effect that any such  amendment  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)(1) of the Code or
on "contributions  after the startup date" under Section  860G(d)(1) of the Code
and (b) any REMIC  created  hereunder  to fail to qualify as a REMIC at any time
that any  Certificate  is  outstanding.  In the event that the Company elects to
provide such  coverage in the form of a limited  guaranty  provided by GMAC LLC,
the Company may elect that the text of such amendment to this Agreement shall be
substantially  in  the  form  attached  hereto  as  Exhibit  K  (in  which  case
Residential  Funding's  Subordinate  Certificate Loss Obligation as described in
such exhibit  shall be  established  by  Residential  Funding's  consent to such
amendment) and that the limited  guaranty shall be executed in the form attached
hereto  as  Exhibit  K,  with  such  changes  as the  Company  shall  deem to be
appropriate;  it being understood that the Trustee has reviewed and approved the
content of such forms and that the  Trustee's  consent  or  approval  to the use
thereof is not required.

     Section 11.02  Recordation of Agreement; Counterparts

     (a) To the extent permitted by applicable law, this Agreement is subject to
recordation in all appropriate  public offices for real property  records in all
the  counties  or other  comparable  jurisdictions  in  which  any or all of the
properties  subject to the Mortgages are situated,  and in any other appropriate
public  recording  office or elsewhere,  such  recordation to be effected by the
Master Servicer and at its expense on direction by the Trustee  (pursuant to the
request  of  Holders  of  Certificates  entitled  to at least 25% of the  Voting
Rights),  but only upon  direction  accompanied  by an Opinion of Counsel to the
effect that such recordation  materially and beneficially  affects the interests
of the Certificateholders.

                                      -117-
<PAGE>

     (b) For the purpose of  facilitating  the  recordation of this Agreement as
herein  provided  and  for  other  purposes,  this  Agreement  may  be  executed
simultaneously in any number of counterparts,  each of which  counterparts shall
be deemed to be an original,  and such counterparts shall constitute but one and
the same instrument.

     Section 11.03  Limitation on Rights of Certificateholders

     (a) The death or incapacity of any  Certificateholder  shall not operate to
terminate this Agreement or the Trust Fund, nor entitle such Certificateholder's
legal  representatives  or heirs to claim an accounting or to take any action or
proceeding  in any court for a partition  or winding up of the Trust  Fund,  nor
otherwise  affect the rights,  obligations and liabilities of any of the parties
hereto.

     (b) No Certificateholder  shall have any right to vote (except as expressly
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  person by reason of any action  taken by the  parties  to this  Agreement
pursuant to any provision hereof.

     (c) No Certificateholder shall have any right by virtue of any provision of
this  Agreement to institute any suit,  action or proceeding in equity or at law
upon or under or with respect to this Agreement,  unless such Holder  previously
shall  have  given  to the  Trustee  a  written  notice  of  default  and of the
continuance  thereof, as hereinbefore  provided,  and unless also the Holders of
Certificates  of any Class  evidencing in the aggregate not less than 25% of the
related Percentage Interests of such Class, shall have made written request upon
the Trustee to institute  such  action,  suit or  proceeding  in its own name as
Trustee  hereunder  and  shall  have  offered  to the  Trustee  such  reasonable
indemnity as it may require  against the costs,  expenses and  liabilities to be
incurred therein or thereby,  and the Trustee,  for 60 days after its receipt of
such notice, request and offer of indemnity,  shall have neglected or refused to
institute any such action,  suit or proceeding it 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
of any  Class  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  of such Class or any other Class, 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  Certificateholders  of such Class
or all Classes,  as the case may be. 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

     This agreement and the  Certificates  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.

                                      -118-
<PAGE>

     Section 11.05  Notices

     As provided in Section 11.05 of the Series Supplement.

     Section 11.06  Required Notices to Rating Agency and Subservicer

     The Company,  the Master Servicer or the Trustee, as applicable,  shall (i)
notify each Rating  Agency and the  Subservicer  at such time as it is otherwise
required  pursuant to this  Agreement to give notice of the occurrence of any of
the events described in CLAUSE (a), (b), (c), (d), (g), (h), (i) or (j) below or
(ii)  provide  a copy to each  Rating  Agency  and  Subservicer  at such time as
otherwise  required to be  delivered  pursuant to this  Agreement  of any of the
statements described in CLAUSES (e) and (f) below:

     (a) a material change or amendment to this Agreement,

     (b) the occurrence of an Event of Default,

     (c) the  termination  or  appointment  of a  successor  Master  Servicer or
Trustee or a change in the majority ownership of the Trustee,

     (d) the filing of any claim under the Master  Servicer's  blanket  fidelity
bond and the errors and omissions  insurance  policy required by SECTION 3.12 or
the cancellation or modification of coverage under any such instrument,

     (e) the statement  required to be delivered to the Holders of each Class of
Certificates pursuant to SECTION 4.03,

     (f) the statements  required to be delivered  pursuant to SECTIONS 3.18 and
3.19,

     (g) a change in the location of the  Custodial  Account or the  Certificate
Account,

     (h) the occurrence of any monthly cash flow shortfall to the Holders of any
Class of Certificates  resulting from the failure by the Master Servicer to make
an Advance pursuant to SECTION 4.04,

     (i) the occurrence of the Final Distribution Date, and

     (j) the repurchase of or substitution for any Mortgage Loan,

     PROVIDED,  HOWEVER,  that with respect to notice of the  occurrence  of the
events  described in CLAUSES (d), (g) or (h) above,  the Master  Servicer  shall
provide prompt  written notice to each Rating Agency and the  Subservicer of any
such event known to the Master Servicer.

                                      -119-
<PAGE>

     Section 11.07  Severability of Provisions

     If any one or more of the  covenants,  agreements,  provisions  or terms of
this  Agreement  shall be for any  reason  whatsoever  held  invalid,  then such
covenants,  agreements,  provisions or terms shall be deemed  severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or  enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

     Section 11.08  Supplemental Provisions for Resecuritization

     This Agreement may be  supplemented  by means of the addition of a separate
Article hereto (a "Supplemental  Article") for the purpose of resecuritizing any
of the Certificates issued hereunder,  under the following  circumstances.  With
respect to any Class or Classes of Certificates issued hereunder, or any portion
of any such  Class,  as to which the  Company or any of its  Affiliates  (or any
designee thereof) is the registered Holder (the  "Resecuritized  Certificates"),
the  Company  may  deposit  such  Resecuritized  Certificates  into a new REMIC,
grantor trust or custodial arrangement (a "Restructuring Vehicle") to be held by
the Trustee  pursuant to a Supplemental  Article.  The instrument  adopting such
Supplemental  Article shall be executed by the Company,  the Master Servicer and
the Trustee;  provided,  that neither the Master  Servicer nor the Trustee shall
withhold  their  consent  thereto  if their  respective  interests  would not be
materially  adversely  affected  thereby.  To the  extent  that the terms of the
Supplemental  Article do not in any way affect any  provisions of this Agreement
as to any of the Certificates  initially issued  hereunder,  the adoption of the
Supplemental Article shall not constitute an "amendment" of this Agreement.

     Each Supplemental Article shall set forth all necessary provisions relating
to  the  holding  of  the  Resecuritized   Certificates  by  the  Trustee,   the
establishment of the  Restructuring  Vehicle,  the issuing of various classes of
new certificates by the  Restructuring  Vehicle and the distributions to be made
thereon,  and any  other  provisions  necessary  for the  purposes  thereof.  In
connection  with each  Supplemental  Article,  the Company  shall deliver to the
Trustee an Opinion of Counsel to the effect that (i) the  Restructuring  Vehicle
will qualify as a REMIC,  grantor  trust or other entity not subject to taxation
for  federal  income tax  purposes  and (ii) the  adoption  of the  Supplemental
Article will not endanger the status of the Trust Fund as a REMIC or (subject to
Section  10.01(f))  result  in the  imposition  of a tax  upon  the  Trust  Fund
(including but not limited to the tax on prohibited  transactions  as defined in
Section  860F(a)(2) of the Code and the tax on  contributions  to a REMIC as set
forth in Section 860G(d) of the Code).

     Section 11.09  Allocation of Voting Rights

     As provided in Section 11.09 of the Series Supplement.

     Section 11.10  No Petition

     The  Company,  Master  Servicer  and the  Trustee,  by  entering  into this
Agreement,  and each  Certificateholder,  by  accepting  a  Certificate,  hereby
covenant  and agree that they will not at any time  institute  against the Trust
Fund,  or join  in any  institution  against  the  Trust  Fund,  any  bankruptcy
proceedings  under any United States federal or state  bankruptcy or similar law
in  connection  with any  obligation  with respect to the  Certificates  or this
Agreement.

                                      -120-
<PAGE>

                                  ARTICLE XII

                          COMPLIANCE WITH REGULATION AB

     Section 12.01  Intent of Parties; Reasonableness

     The Company, the Trustee and the Master Servicer acknowledge and agree that
the purpose of this Article XII is to facilitate  compliance by the Company with
the  provisions  of  Regulation  AB and  related  rules and  regulations  of the
Commission.  The Company  shall not  exercise  its right to request  delivery of
information  or other  performance  under  these  provisions  other than in good
faith,  or for  purposes  other than  compliance  with the  Securities  Act, the
Exchange  Act  and  the  rules  and  regulations  of the  Commission  under  the
Securities Act and the Exchange Act. Each of the Master Servicer and the Trustee
acknowledges  that  interpretations  of the  requirements  of  Regulation AB may
change  over  time,  whether  due  to  interpretive  guidance  provided  by  the
Commission or its staff,  consensus among  participants  in the  mortgage-backed
securities markets,  advice of counsel, or otherwise,  and agrees to comply with
reasonable  requests  made  by  the  Company  in  good  faith  for  delivery  of
information under these provisions on the basis of evolving  interpretations  of
Regulation  AB.  Each of the Master  Servicer  and the Trustee  shall  cooperate
reasonably  with the  Company to deliver to the  Company  (including  any of its
assignees  or  designees),   any  and  all  disclosure,   statements,   reports,
certifications,  records and any other information  necessary in the reasonable,
good faith determination of the Company to permit the Company to comply with the
provisions of Regulation AB.

     Section 12.02  Additional Representations and Warranties of the Trustee

     (a) The Trustee  shall be deemed to represent and warrant to the Company as
of the date  hereof and on each date on which  information  is  provided  to the
Company under  Sections  12.01,  12.02(b) or 12.03 that,  except as disclosed in
writing  to the  Company  prior to such  date:  (i) it is not  aware and has not
received  notice  that any  default,  early  amortization  or other  performance
triggering event has occurred as to any other Securitization  Transaction due to
any default of the Trustee; (ii) there are no aspects of its financial condition
that  could  have a  material  adverse  effect on the  performance  by it of its
trustee obligations under this Agreement or any other Securitization Transaction
as to which it is the trustee; (iii) there are no material legal or governmental
proceedings  pending  (or known to be  contemplated)  against  it that  would be
material to Certificateholders;  (iv) there are no relationships or transactions
(as  described  in Item 1119(b) of  Regulation  AB) relating to the Trustee with
respect to the  Company  or any  sponsor,  issuing  entity,  servicer,  trustee,
originator,  significant  obligor,  enhancement  or  support  provider  or other
material  transaction  party (as each of such terms are used in  Regulation  AB)
relating to the  Securitization  Transaction  contemplated by the Agreement,  as
identified  by the  Company to the  Trustee in  writing as of the  Closing  Date
(each, a "Transaction  Party") that are outside the ordinary  course of business
or on terms other than would be obtained in an arm's length  transaction with an
unrelated third party, apart from the Securitization  Transaction,  and that are
material  to the  investors'  understanding  of the  Certificates;  and  (v) the
Trustee is not an affiliate (as  contemplated  by Item 1119(a) of Regulation AB)
of any Transaction  Party. The Company shall notify the Trustee of any change in
the identity of a Transaction Party after the Closing Date.

                                      -121-
<PAGE>

     (b) If so requested by the Company on any date  following the Closing Date,
the Trustee shall, within five Business Days following such request,  confirm in
writing  the  accuracy  of the  representations  and  warranties  set  forth  in
paragraph (a) of this Section or, if any such representation and warranty is not
accurate as of the date of such  confirmation,  provide the pertinent  facts, in
writing,  to the Company.  Any such request from the Company  shall not be given
more than once each calendar quarter, unless the Company shall have a reasonable
basis for a determination that any of the representations and warranties may not
be accurate.

     Section 12.03  Information to be Provided by the Trustee

     For so  long as the  Certificates  are  outstanding,  for  the  purpose  of
satisfying  the  Company's  reporting  obligation  under the  Exchange  Act with
respect to any class of Certificates, the Trustee shall provide to the Company a
written  description of (a) any litigation or governmental  proceedings  pending
against  the  Trustee  as of the last day of each  calendar  month that would be
material to  Certificateholders,  and (b) any affiliations or relationships  (as
described in Item 1119 of Regulation AB) that develop following the Closing Date
between the Trustee and any  Transaction  Party of the type described in Section
12.02(a)(iv)  or  12.02(a)(v)  as of the last  day of each  calendar  year.  Any
descriptions  required with respect to legal proceedings,  as well as updates to
previously  provided  descriptions,  under this Section  12.03 shall be given no
later than five  Business  Days prior to the  Determination  Date  following the
month in which the  relevant  event  occurs,  and any notices  and  descriptions
required with respect to affiliations, as well as updates to previously provided
descriptions,  under this Section  12.03 shall be given no later than January 31
of the calendar year following the year in which the relevant  event occurs.  As
of the date the  Company or Master  Servicer  files each Report on Form 10-D and
Report on Form 10-K with respect to the Certificates, the Trustee will be deemed
to represent and warrant that any information previously provided by the Trustee
under this  Article XII is  materially  correct  and does not have any  material
omissions  unless the Trustee has  provided an update to such  information.  The
Company  will allow the  Trustee to review any  disclosure  relating to material
litigation  against  the  Trustee  prior  to  filing  such  disclosure  with the
Commission  to the extent the Company  changes the  information  provided by the
Trustee.

     Section 12.04  Report on Assessment of Compliance and Attestation

     On or before March 15 of each calendar year, the Trustee shall:

     (a)  deliver  to the  Company a report  (in form and  substance  reasonably
satisfactory  to the Company)  regarding the Trustee's  assessment of compliance
with the applicable Servicing Criteria during the immediately preceding calendar
year,  as required  under Rules  13a-18 and 15d-18 of the  Exchange Act and Item
1122 of Regulation  AB. Such report shall be addressed to the Company and signed
by an authorized officer of the Trustee, and shall address each of the Servicing
Criteria specified on Exhibit R hereto; and

     (b) deliver to the Company a report of a registered  public accounting firm
reasonably  acceptable  to the  Company  that  attests  to, and  reports on, the
assessment  of  compliance  made by the  Trustee and  delivered  pursuant to the
preceding  paragraph.  Such  attestation  shall  be  in  accordance  with  Rules
1-02(a)(3)  and  2-02(g)  of  Regulation  S-X under the  Securities  Act and the
Exchange Act.

                                      -122-
<PAGE>

     Section 12.05  Indemnification; Remedies

     (a) The Trustee shall indemnify the Company, each affiliate of the Company,
the  Master  Servicer  and  each  affiliate  of the  Master  Servicer;  and  the
respective present and former directors,  officers, employees and agents of each
of the  foregoing,  and shall hold each of them  harmless  from and  against any
losses,  damages,  penalties,  fines,  forfeitures,  legal fees and expenses and
related  costs,  judgments,  and any other costs,  fees and expenses that any of
them may sustain arising out of or based upon:

         (i) (A) any untrue statement of a material fact contained or alleged to
     be  contained  in  any  information,  report,  certification,  accountants'
     attestation  or other  material  provided  under this  Article XII by or on
     behalf of the Trustee (collectively, the "Trustee Information"), or (B) the
     omission or alleged omission to state in the Trustee Information a material
     fact required to be stated in the Trustee Information or necessary in order
     to make the statements  therein,  in the light of the  circumstances  under
     which they were made, not misleading; or

         (ii) any  failure by the Trustee to deliver  any  information,  report,
     certification  or other  material  when and as required  under this Article
     XII,  other  than a failure  by the  Trustee  to  deliver  an  accountants'
     attestation.

     (b) In the case of any failure of  performance  described in clause (ii) of
Section 12.05(a),  the Trustee shall (i) promptly  reimburse the Company for all
costs  reasonably  incurred by the  Company in order to obtain the  information,
report, certification,  accountants' attestation or other material not delivered
as required by the Trustee and (ii)  cooperate  with the Company to mitigate any
damages that may result from such failure.

     (c) The Company and the Master Servicer shall  indemnify the Trustee,  each
affiliate  of the Trustee or each Person who  controls  the Trustee  (within the
meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act);
and the respective present and former directors,  officers, employees and agents
of the  Trustee,  and shall  hold each of them  harmless  from and  against  any
losses,  damages,  penalties,  fines,  forfeitures,  legal fees and expenses and
related  costs,  judgments,  and any other costs,  fees and expenses that any of
them may  sustain  arising  out of or based upon (i) any untrue  statement  of a
material fact contained or alleged to be contained in any  information  provided
under  this  Agreement  by or on behalf of the  Company or Master  Servicer  for
inclusion  in  any  report  filed  with   Commission   under  the  Exchange  Act
(collectively,  the "RFC Information"), or (ii) the omission or alleged omission
to state in the RFC Information a material fact required to be stated in the RFC
Information or necessary in order to make the statements  therein,  in the light
of the circumstances  under which they were made, not misleading;  provided,  by
way of  clarification,  that clause (ii) of this  paragraph  shall be  construed
solely by  reference  to the RFC  Information  and not to any other  information
communicated in connection with a sale or purchase of securities, without regard
to whether the RFC Information or any portion thereof is presented together with
or separately from such other information.

                                      -123-
<PAGE>

     (d)  Notwithstanding  any  provision in this Section 12.05 to the contrary,
the parties agree that none of the Trustee,  the Company or the Master  Servicer
shall  be  liable  to the  other  for  any  consequential  or  punitive  damages
whatsoever,   whether  in  contract,   tort  (including  negligence  and  strict
liability), or any other legal or equitable principle;  provided,  however, that
such limitation  shall not be applicable with respect to third party claims made
against a party.

                                      -124-
<PAGE>

                                    EXHIBIT A

     FORM OF CLASS A CERTIFICATE, [PRINCIPAL ONLY/CLASS A-P] CERTIFICATE
     AND [INTEREST ONLY/CLASS A-V] CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986 (THE "CODE").

     [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.]

     [THIS CERTIFICATE IS AN [EXCHANGEABLE] [EXCHANGED] CERTIFICATE AS DESCRIBED
IN  THE  POOLING  AND   SERVICING   AGREEMENT  AND  MAY  BE  EXCHANGED  FOR  THE
[EXCHANGEABLE]   [EXCHANGED]   CERTIFICATE  OR   CERTIFICATES   IN  THE  RELATED
COMBINATION GROUP.]

                                   EXHIBIT A-1

<PAGE>

Certificate No. [____]       [____]% [Adjustable] [Variable] Pass-Through Rate
                             [based on a Notional Amount]

Class [A-___] Senior         Percentage Interest: ____%

Date of Pooling and          Aggregate Initial [Certificate Principal Balance]
Servicing Agreement          [Interest Only/Class A-V] [Notional Amount]
and Cut-off Date:            [Subclass Notional Amount] of the Class [A-___]
[______________]             Certificates: $________

First Distribution Date:     [Initial] [Certificate Principal Balance] [Interest
[______________]             Only/Class A-V] [Subclass] [Notional Amount] of
                             this Certificate:
                             $[--------------]

Master Servicer:
Residential Funding
Company, LLC

[Assumed] [Scheduled]
Final Distribution Date:     CUSIP
[______________]             [______________]

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                 SERIES ________

          evidencing  a  percentage   interest  in  the  distributions
          allocable to the Class [A-___]  Certificates with respect to
          a Trust Fund consisting  primarily of a pool of conventional
          one- to four-family fixed interest rate first mortgage loans
          formed and sold by RESIDENTIAL  FUNDING MORTGAGE  SECURITIES
          I, INC.

     This  Certificate  is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Funding Mortgage
Securities I, Inc., the Master  Servicer,  the Trustee referred to below or GMAC
Mortgage Group, LLC or any of their affiliates. Neither this Certificate nor the
underlying  Mortgage Loans are guaranteed or insured by any governmental  agency
or  instrumentality or by Residential  Funding Mortgage  Securities I, Inc., the
Master  Servicer,  the  Trustee  or GMAC  Mortgage  Group,  LLC or any of  their
affiliates.  None of the Company, the Master Servicer,  GMAC Mortgage Group, LLC
or any of  their  affiliates  will  have  any  obligation  with  respect  to any
certificate  or other  obligation  secured by or payable  from  payments  on the
Certificates.

     This certifies that _____________ is the registered owner of the Percentage
Interest  evidenced  by this  Certificate  [(obtained  by dividing  the [Initial
Certificate  Principal  Balance]  [Initial  [Interest  Only/Class  A-V] Notional
Amount] of this  Certificate  by the aggregate  [Initial  Certificate  Principal
Balance  of all  Class  A-  Certificates]  [Initial  [Interest  Only/Class  A-V]
Notional  Amounts  of all  [Interest  Only/Class  A-V]  Certificates],  both  as
specified  above)]  in  certain  distributions  with  respect  to the Trust Fund
consisting  primarily  of  an  interest  in  a  pool  of  conventional  one-  to
four-family  fixed interest rate first  mortgage  loans (the "Mortgage  Loans"),

                                   EXHIBIT A-2

<PAGE>

formed and sold by Residential Funding Mortgage Securities I, Inc.  (hereinafter
called the  "Company,"  which  term  includes  any  successor  entity  under the
Agreement  referred to below).  The Trust Fund was created  pursuant to a Series
Supplement,  dated as  specified  above,  to the  Standard  Terms of Pooling and
Servicing  Agreement dated as of  ________________  (together,  the "Pooling and
Servicing  Agreement" or the "Agreement") among the Company, the Master Servicer
and  _______________,  as trustee (the  "Trustee"),  a summary of certain of the
pertinent provisions of which is set forth hereafter.  To the extent not defined
herein,  the  capitalized  terms used herein have the  meanings  assigned in the
Agreement.  This  Certificate  is issued  under  and is  subject  to the  terms,
provisions  and conditions of the  Agreement,  to which  Agreement the Holder of
this  Certificate by virtue of the  acceptance  hereof assents and by which such
Holder is bound.

     Pursuant to the terms of the Agreement,  a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of  business  on the last day (or if such last day is not a Business  Day,
the Business Day immediately  preceding such last day) of the month  immediately
preceding the month of such distribution (the "Record Date"), from the [related]
Available  Distribution  Amount  in an  amount  equal  to  the  product  of  the
Percentage  Interest  evidenced by this Certificate and the amount [(of interest
and  principal,  if any)]  required  to be  distributed  to  Holders of Class A-
Certificates on such Distribution Date. [the [Interest  Only/Class A-V] Notional
Amount  of  the  [Interest  Only/Class  A-V]  Certificates  as of  any  date  of
determination is equal to the aggregate stated Principal Balance of the Mortgage
Loans corresponding to the uncertificated REMIC regular interests represented by
such [Interest Only/Class A-V] Certificates.]

     Distributions  on  this  Certificate  will  be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

     Notwithstanding  the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that purpose.  [The [Initial  Certificate  Principal Balance]
[Initial  [Interest  Only/Class A-V] Notional Amount] of this Certificate is set
forth above.] [The Certificate  Principal  Balance hereof will be reduced to the
extent of distributions allocable to principal and any Realized Losses allocable
hereto.]

     This Certificate is one of a duly authorized  issue of Certificates  issued
in several  Classes  designated  as Mortgage  Pass-Through  Certificates  of the
Series specified hereon (herein collectively called the "Certificates").

                                   EXHIBIT A-3

<PAGE>

     The Certificates are limited in right of payment to certain collections and
recoveries  respecting the Mortgage Loans,  all as more  specifically  set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

     As provided in the Agreement, withdrawals from the Custodial Account and/or
the  Certificate  Account created for the benefit of  Certificateholders  may be
made  by the  Master  Servicer  from  time  to  time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the Company  and the Master  Servicer  of  advances  made,  or
certain expenses incurred, by either of them.

     The  Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Company,  the  Master  Servicer  and  the  Trustee  and the  rights  of the
Certificateholders  under the  Agreement at any time by the Company,  the Master
Servicer  and the  Trustee  with the  consent  of the  Holders  of  Certificates
evidencing in the aggregate not less than 66.6% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

     As provided in the Agreement and subject to certain limitations therein set
forth,  the  transfer of this  Certificate  is  registrable  in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies appointed by the Trustee

     , 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 authorized  denominations  evidencing the same Class and aggregate Percentage
Interest will be issued to the designated transferee or transferees.

     The  Certificates  are issuable  only as  registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service  charge  will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

                                   EXHIBIT A-4

<PAGE>

     [This Certificate is an [Exchangeable] [Exchanged] Certificate as described
in  the  Pooling  and   Servicing   Agreement  and  may  be  exchanged  for  the
[Exchangeable]   [Exchanged]   Certificate  or   Certificates   in  the  related
Combination Group specified in the Pooling and Servicing  Agreement,  subject to
certain terms and  conditions  specified  therein,  including the payment to the
Trustee of a fee of $10,000 with respect to each exchange.  This  [Exchangeable]
[Exchanged]  Certificate  may be exchanged  for the  [Exchangeable]  [Exchanged]
Certificate or Certificates in the related Combination Group only on the days of
each month specified in the Pooling and Servicing Agreement.]

     The Company, the Master Servicer, the Trustee and the Certificate Registrar
and  any  agent  of  the  Company,  the  Master  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 neither the Company,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

     This Certificate  shall be governed by and construed in accordance with the
laws of the State of New York.

     The obligations created by the Agreement in respect of the Certificates and
the  Trust  Fund  created   thereby   shall   terminate   upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan [in the related
Loan Group] subject  thereto or the  disposition  of all property  acquired upon
foreclosure  or deed in lieu of  foreclosure  of any Mortgage  Loan and (ii) the
purchase by the Master  Servicer from the Trust Fund of all  remaining  Mortgage
Loans [in the related Loan Group] and all  property  acquired in respect of such
Mortgage Loans,  thereby  effecting early  retirement of the  Certificates.  The
Agreement permits,  but does not require, the Master Servicer to (i) purchase at
a price determined as provided in the Agreement all remaining Mortgage Loans [in
the related  Loan Group] and all  property  acquired in respect of any  Mortgage
Loan  or  (ii)  purchase  in  whole,  but  not in  part,  all  of the  [related]
Certificates from the Holders thereof;  provided,  that any such option may only
be exercised if the Pool Stated Principal  Balance of the Mortgage Loans [in the
related Loan Group] as of the  Distribution  Date upon which the proceeds of any
such  purchase  are  distributed  is less than ten percent of the  Cut-off  Date
Principal Balance of the Mortgage Loans Group [in the related Loan Group].

     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.

     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.

                                   EXHIBIT A-5

<PAGE>

     IN WITNESS  WHEREOF,  the Trustee has caused  this  Certificate  to be duly
executed.

     Dated:                                    [TRUSTEE],
           ------------------------------

                                               as Trustee

                                               By:
                                                  ------------------------------
                                               Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

     This  is  one  of  the  Class  [A-  ]  Certificates   referred  to  in  the
within-mentioned Agreement.

                                               [TRUSTEE],
                                               as Certificate Registrar

                                               By:
                                                  ------------------------------
                                               Authorized Signatory

                                   EXHIBIT A-6

<PAGE>

                                   ASSIGNMENT

     FOR  VALUE  RECEIVED,   the  undersigned  hereby  sell(s),   assign(s)  and
transfer(s)  unto (Please print or typewrite name and address  including  postal
zip code of assignee) a  Percentage  Interest  evidenced by the within  Mortgage
Pass-Through  Certificate and hereby  authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

     I (We) further direct the Certificate  Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

     Dated:
           -----------------------------   -------------------------------------
                                           Signature by or on behalf of assignor

                                           -------------------------------------
                                           Signature Guaranteed

                            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.

                                   EXHIBIT A-7

<PAGE>

                                   EXHIBIT A-1

                           FORM OF CLASS X 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.

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.

                                 EXHIBIT A-1-1

<PAGE>

Certificate No. ____                       Variable Pass-Through Rate
Class X Senior

Date of Pooling and Servicing Agreement    Percentage Interest: 100%
and Cut-off Date: __________ 1, ____

Master Servicer:                           Aggregate Initial Notional Amount of
Residential Funding Company, LLC           the Class X Certificates: $__________

First Distribution Date:                   Initial Notional Amount of this
__________ 25, ____                        Certificate: $_____________

Assumed Final Distribution Date:           CUSIP ________
-------------

                 MORTGAGE ASSET-BACKED PASS-THROUGH CERTIFICATE
                                SERIES ____-____

          Evidencing  a  percentage   interest  in  the  distributions
          allocable  to the Class X  Certificates  with  respect  to a
          Trust Fund consisting  primarily of a pool of  [conventional
          one- to four-family residential,  adjustable-rate first lien
          mortgage  loans]  formed  and  sold by  RESIDENTIAL  FUNDING
          MORTGAGE SECURITIES I, INC.

     This  Certificate  is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Funding Mortgage
Securities I, Inc., the Master  Servicer,  the Trustee referred to below or GMAC
Mortgage Group, LLC or any of their affiliates. Neither this Certificate nor the
underlying  Mortgage Loans are guaranteed or insured by any governmental  agency
or  instrumentality or by Residential  Funding Mortgage  Securities I, Inc., the
Master  Servicer,  the  Trustee  or GMAC  Mortgage  Group,  LLC or any of  their
affiliates.  None of the Company, the Master Servicer,  GMAC Mortgage Group, LLC
or any of  their  affiliates  will  have  any  obligation  with  respect  to any
certificate  or other  obligation  secured by or payable  from  payments  on the
Certificates.

     This certifies that  _________________________  is the registered  owner of
the Percentage Interest evidenced by this Certificate  (obtained by dividing the
Initial Notional Amount of this Certificate by the Aggregate  Notional Amount of
all Class X Certificates, both as specified above) in certain distributions with
respect to the Trust  Fund  consisting  primarily  of an  interest  in a pool of
[conventional  one-  to  four-family  residential,  adjustable-rate  first  lien
mortgage loans] (the "Mortgage Loans"),  formed and sold by Residential  Funding
Mortgage  Securities  I, Inc.  (hereinafter  called  the  "Company,"  which term
includes any successor entity under the Agreement  referred to below). The Trust
Fund  was  created  pursuant  to a  Pooling  and  Servicing  Agreement  dated as
specified  above (the  "Agreement")  among the Company,  the Master Servicer and
________________________,  as trustee (the  "Trustee"),  a summary of certain of
the  pertinent  provisions  of which is set forth  hereafter.  To the extent not
defined

                                 EXHIBIT A-1-2
<PAGE>

herein,  the  capitalized  terms used herein have the  meanings  assigned in the
Agreement.  This  Certificate  is issued  under  and is  subject  to the  terms,
provisions  and conditions of the  Agreement,  to which  Agreement the Holder of
this  Certificate by virtue of the  acceptance  hereof assents and by which such
Holder is bound.

     Pursuant to the terms of the Agreement,  a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of  business  on the last day (or if such last day is not a Business  Day,
the Business Day immediately  preceding such last day) of the month  immediately
preceding the month of such distribution (the "Record Date"), from the Available
Distribution Amount in an amount equal to the product of the Percentage Interest
evidenced  by this  Certificate  and the amount  required to be  distributed  to
Holders  of  Class  X  Certificates  on  such  Distribution  Date.  The  Class X
Certificates have no Certificate Principal Balance.

     Distributions  on  this  Certificate  will  be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

     Notwithstanding  the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that purpose. The Initial Notional Amount of this Certificate
is set forth above.

     This Certificate is one of a duly authorized  issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

     The Certificates are limited in right of payment to certain collections and
recoveries  respecting the Mortgage Loans,  all as more  specifically  set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

     As provided in the Agreement, withdrawals from the Custodial Account and/or
the  Certificate  Account created for the benefit of  Certificateholders  may be
made  by the  Master  Servicer  from  time  to  time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the Company  and the Master  Servicer  of  advances  made,  or
certain expenses incurred, by either of them.

                                 EXHIBIT A-1-3
<PAGE>

     The  Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Company,  the  Master  Servicer  and  the  Trustee  and the  rights  of the
Certificateholders  under the  Agreement at any time by the Company,  the Master
Servicer  and the  Trustee  with the  consent  of the  Holders  of  Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

     As provided in the Agreement and subject to certain limitations therein set
forth,  the  transfer of this  Certificate  is  registrable  in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee,  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 authorized  denominations  evidencing
the  same  Class  and  aggregate  Percentage  Interest  will  be  issued  to the
designated transferee or transferees.

     The  Certificates  are issuable  only as  registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service  charge  will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     The Company, the Master Servicer, the Trustee and the Certificate Registrar
and  any  agent  of  the  Company,  the  Master  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 neither the Company,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

     This Certificate  shall be governed by and construed in accordance with the
laws of the State of New York.

                                 EXHIBIT A-1-4
<PAGE>

     The obligations created by the Agreement in respect of the Certificates and
the  Trust  Fund  created   thereby   shall   terminate   upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any Mortgage  Loan and (ii) the purchase by the Master  Servicer
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans,  thereby  effecting  early  retirement  of the
Certificates.  The Agreement permits,  but does not require, the Master Servicer
to (i) purchase at a price determined as provided in the Agreement all remaining
Mortgage Loans and all property acquired in respect of any Mortgage Loan or (ii)
purchase in whole,  but not in part,  all of the  Certificates  from the Holders
thereof; provided, that any such option may only be exercised if the Pool Stated
Principal  Balance of the Mortgage Loans as of the Distribution  Date upon which
the proceeds of any such  purchase are  distributed  is less than ten percent of
the Cut-off Date Principal Balance of the Mortgage Loans.

     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.

     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.

                                 EXHIBIT A-1-5
<PAGE>

     IN WITNESS  WHEREOF,  the Trustee has caused  this  Certificate  to be duly
executed.

Dated:                                       [--------------------------------],
                                                         as Trustee

                                             By:
                                                --------------------------------
                                                      Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

     This is one of the Class X Certificates referred to in the within-mentioned
Agreement.

                                             [--------------------------------],
                                                  as Certificate Registrar

                                             By:
                                                --------------------------------
                                                     Authorized Signatory

                                 EXHIBIT A-1-6
<PAGE>

                                   ASSIGNMENT

     FOR  VALUE  RECEIVED,   the  undersigned  hereby  sell(s),   assign(s)  and
transfer(s) unto

(Please  print  or  typewrite  name and  address  including  postal  zip code of
assignee) a Percentage  Interest  evidenced by the within Mortgage  Asset-Backed
Pass-Through  Certificate and hereby  authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

     I (We) further direct the Certificate  Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:
                                      -------------------------------------

                                           -------------------------------------
                                           Signature by or on behalf of assignor

                                           -------------------------------------
                                           Signature Guaranteed
Dated:

                            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.

                                 EXHIBIT A-1-7
<PAGE>

                                    EXHIBIT B

                           FORM OF CLASS M CERTIFICATE

     THIS  CERTIFICATE  IS  SUBORDINATED  IN RIGHT OF PAYMENT  TO THE  [RELATED]
SENIOR  CERTIFICATES  [CLASS M-1  CERTIFICATES]  [AND CLASS M-2 CERTIFICATES] AS
DESCRIBED IN THE AGREEMENT (AS DEFINED BELOW).

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986 (THE "CODE").

     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.

     ANY TRANSFEREE OF THIS  CERTIFICATE  WILL BE DEEMED TO HAVE  REPRESENTED BY
VIRTUE OF ITS PURCHASE OR HOLDING OF SUCH  CERTIFICATE (OR ANY INTEREST  HEREIN)
THAT EITHER (A) SUCH  TRANSFEREE  IS NOT AN EMPLOYEE  BENEFIT PLAN OR OTHER PLAN
SUBJECT TO THE  PROHIBITED  TRANSACTION  PROVISIONS  OF THE EMPLOYEE  RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED  ("ERISA"),  OR SECTION 4975 OF THE CODE
(EACH, A "PLAN"), OR ANY PERSON (INCLUDING,  WITHOUT  LIMITATION,  AN INVESTMENT
MANAGER,  A NAMED  FIDUCIARY OR A TRUSTEE OF ANY PLAN) WHO IS USING PLAN ASSETS,
WITHIN THE MEANING OF THE U.S. DEPARTMENT OF LABOR REGULATION  PROMULGATED AT 29
C.F.R. ss. 2510.3-101, AS MODIFIED BY SECTION 3(42) OF ERISA, OF ANY PLAN (EACH,
A "PLAN  INVESTOR")  TO EFFECT  SUCH  ACQUISITION,  (B) IT HAS  ACQUIRED  AND IS
HOLDING THIS  CERTIFICATE  IN RELIANCE ON U.S.  DEPARTMENT  OF LABOR  PROHIBITED
TRANSACTION  EXEMPTION  ("PTE") 94-29,  59 FED. REG. 14674 (MARCH 29, 1994),  AS
MOST RECENTLY AMENDED BY PTE 2002-41,  67 FED. REG. 54487 (AUGUST 22, 2002) (THE
"RFC EXEMPTION"),  AND THAT IT UNDERSTANDS THAT THERE ARE CERTAIN  CONDITIONS TO
THE  AVAILABILITY OF THE RFC EXEMPTION  INCLUDING THAT SUCH  CERTIFICATE MUST BE
RATED,  AT THE TIME OF PURCHASE,  NOT LOWER THAN "BBB-" (OR ITS  EQUIVALENT)  BY
STANDARD & POOR'S,  FITCH OR MOODY'S OR (C)(I) THE  TRANSFEREE  IS AN  INSURANCE
COMPANY,  (II) THE SOURCE OF FUNDS USED TO PURCHASE OR HOLD THE  CERTIFICATE (OR
ANY

                                  EXHIBIT B-1
<PAGE>

INTEREST  HEREIN) IS AN "INSURANCE  COMPANY GENERAL ACCOUNT" (AS DEFINED IN U.S.
DEPARTMENT OF LABOR PROHIBITED  TRANSACTION CLASS EXEMPTION ("PTCE") 95-60), AND
(III) THE  CONDITIONS  SET FORTH IN  SECTIONS  I AND III OF PTCE 95-60 HAVE BEEN
SATISFIED  (EACH ENTITY THAT SATISFIES  THIS CLAUSE (C), A "COMPLYING  INSURANCE
COMPANY").

     IF THIS  CERTIFICATE  (OR  ANY  INTEREST  HEREIN)  IS  ACQUIRED  OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH,  THEN THE LAST PRECEDING
TRANSFEREE  THAT EITHER (A) IS NOT A PLAN OR A PLAN INVESTOR,  (B) ACQUIRED SUCH
CERTIFICATE IN COMPLIANCE WITH THE RFC EXEMPTION OR (C) IS A COMPLYING INSURANCE
COMPANY  SHALL BE  RESTORED,  TO THE EXTENT  PERMITTED BY LAW, TO ALL RIGHTS AND
OBLIGATIONS  AS  CERTIFICATE  OWNER  THEREOF  RETROACTIVE  TO THE  DATE  OF SUCH
TRANSFER OF THIS  CERTIFICATE.  THE TRUSTEE  SHALL BE UNDER NO  LIABILITY TO ANY
PERSON  FOR  MAKING  ANY  PAYMENTS  DUE ON THIS  CERTIFICATE  TO SUCH  PRECEDING
TRANSFEREE.

     ANY  PURPORTED  CERTIFICATE  OWNER  WHOSE  ACQUISITION  OR  HOLDING OF THIS
CERTIFICATE  (OR  ANY  INTEREST   HEREIN)  WAS  EFFECTED  IN  VIOLATION  OF  THE
RESTRICTIONS  IN SECTION  5.02(e) OF THE POOLING AND SERVICING  AGREEMENT  SHALL
INDEMNIFY AND HOLD HARMLESS THE COMPANY, THE TRUSTEE,  THE MASTER SERVICER,  ANY
SUBSERVICER,  AND THE  TRUST  FUND  FROM AND  AGAINST  ANY AND ALL  LIABILITIES,
CLAIMS,  COSTS  OR  EXPENSES  INCURRED  BY  SUCH  PARTIES  AS A  RESULT  OF SUCH
ACQUISITION OR HOLDING.

                                  EXHIBIT B-2
<PAGE>

Certificate No. [____]            [____]% Pass-Through Rate

Class [M-___] Subordinate

Date of Pooling and               Principal Balance of the Class M Certificates:
Servicing Agreement and           $_______________
Cut-off Date:
[______________]

First Distribution Date:          Initial Certificate Principal Balance of this
[______________]                  Certificate:
                                  $[______________]

Master Servicer:
Residential Funding Company, LLC

[Assumed] [Schedule] Final
Distribution Date:                CUSIP
[______________]                  [______________]

                       MORTGAGE PASS-THROUGH CERTIFICATE,
                                 SERIES ________

                  evidencing   a  percentage   interest  in  any   distributions
                  allocable to the Class M-___  Certificates with respect to the
                  Trust Fund consisting primarily of a pool of conventional one-
                  to four-family fixed interest rate first mortgage loans formed
                  and sold by RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

     This  Certificate  is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Funding Mortgage
Securities I, Inc., the Master  Servicer,  the Trustee referred to below or GMAC
Mortgage Group, LLC or any of their affiliates. Neither this Certificate nor the
underlying  Mortgage Loans are guaranteed or insured by any governmental  agency
or  instrumentality or by Residential  Funding Mortgage  Securities I, Inc., the
Master  Servicer,  the  Trustee  or GMAC  Mortgage  Group,  LLC or any of  their
affiliates.  None of the Company, the Master Servicer,  GMAC Mortgage Group, LLC
or any of  their  affiliates  will  have  any  obligation  with  respect  to any
certificate  or other  obligation  secured by or payable  from  payments  on the
Certificates.

     This  certifies that is the  registered  owner of the  Percentage  Interest
evidenced by this  Certificate  (obtained by dividing the Certificate  Principal
Balance of this Certificate by the aggregate  Certificate  Principal  Balance of
all Class M-___ Certificates,  both as specified above) in certain distributions
with respect to a Trust Fund consisting primarily of a pool of conventional one-
to four-family fixed interest rate first mortgage loans (the "Mortgage  Loans"),
formed and sold by Residential Funding Mortgage Securities I, Inc.  (hereinafter
called the  "Company,"  which  term  includes  any  successor  entity  under the
Agreement  referred to below).  The Trust Fund was created  pursuant to a Series
Supplement,  dated as  specified  above,  to the  Standard  Terms of Pooling and
Servicing  Agreement dated as of  ________________  (together,  the "Pooling and
Servicing Agreement" or the "Agreement") among the Company, the Master

                                  EXHIBIT B-3
<PAGE>

Servicer and ___________,  as trustee (the  "Trustee"),  a summary of certain of
the  pertinent  provisions  of which is set forth  hereafter.  To the extent not
defined herein,  the capitalized terms used herein have the meanings assigned in
the  Agreement.  This  Certificate  is issued under and is subject to the terms,
provisions  and conditions of the  Agreement,  to which  Agreement the Holder of
this  Certificate by virtue of the  acceptance  hereof assents and by which such
Holder is bound.

     Pursuant to the terms of the Agreement,  a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of  business  on the last day (or if such last day is not a Business  Day,
the Business Day immediately  preceding such last day) of the month  immediately
preceding the month of such distribution (the "Record Date"), from the [related]
Available  Distribution  Amount  in an  amount  equal  to  the  product  of  the
Percentage  Interest  evidenced by this  Certificate and the amount (of interest
and  principal,  if any)  required to be  distributed  to Holders of Class M-___
Certificates on such Distribution Date.

     Distributions  on  this  Certificate  will  be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

     Notwithstanding  the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that purpose.  The Initial  Certificate  Principal Balance of
this  Certificate is set forth above. The Certificate  Principal  Balance hereof
will be reduced to the extent of the  distributions  allocable to principal  and
any Realized Losses allocable hereto.

     As described  above,  any transferee of this  Certificate will be deemed to
have  represented by virtue of its purchase or holding of this  Certificate  (or
any  interest  herein) that either (a) such  transferee  is not a Plan or a Plan
Investor, (b) it has acquired and is holding this Certificate in reliance on the
RFC Exemption and that it understands  that there are certain  conditions to the
availability of the RFC Exemption including that this Certificate must be rated,
at the time of purchase, not lower than "BBB-" (or its equivalent) by Standard &
Poor's, Fitch or Moody's or (c) the transferee is a Complying Insurance Company.
In addition,  any purported  Certificate  Owner whose  acquisition or holding of
this  Certificate  (or any  interest  herein) was  effected in  violation of the
restrictions  in  Section  5.02(e) of the  Agreement  shall  indemnify  and hold
harmless the Company, the Trustee, the Master Servicer, any Subservicer, and the
Trust Fund from and against any and all liabilities,  claims,  costs or expenses
incurred by such parties as a result of such acquisition or holding.

     This Certificate is one of a duly authorized  issue of Certificates  issued
in several  Classes  designated  as Mortgage  Pass-Through  Certificates  of the
Series specified hereon (herein collectively called the "Certificates").

                                  EXHIBIT B-4
<PAGE>

     The Certificates are limited in right of payment to certain collections and
recoveries  respecting the Mortgage Loans,  all as more  specifically  set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

     As provided in the Agreement, withdrawals from the Custodial Account and/or
the  Certificate  Account created for the benefit of  Certificateholders  may be
made  by the  Master  Servicer  from  time  to  time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the Company  and the Master  Servicer  of  advances  made,  or
certain expenses incurred, by either of them.

     The  Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Company,  the  Master  Servicer  and  the  Trustee  and the  rights  of the
Certificateholders  under the  Agreement at any time by the Company,  the Master
Servicer  and the  Trustee  with the  consent  of the  Holders  of  Certificates
evidencing in the aggregate not less than 66.6% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

     As provided in the Agreement and subject to certain limitations therein set
forth,  the  transfer of this  Certificate  is  registrable  in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee,  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 authorized  denominations  evidencing
the  same  Class  and  aggregate  Percentage  Interest  will  be  issued  to the
designated transferee or transferees.

     The  Certificates  are issuable  only as  registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service  charge  will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

                                  EXHIBIT B-5
<PAGE>

     The Company, the Master Servicer, the Trustee and the Certificate Registrar
and  any  agent  of  the  Company,  the  Master  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 neither the Company,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

     This Certificate  shall be governed by and construed in accordance with the
laws of the State of New York.

     The obligations created by the Agreement in respect of the Certificates and
the  Trust  Fund  created   thereby   shall   terminate   upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan [in the related
Loan Group] subject  thereto or the  disposition  of all property  acquired upon
foreclosure  or deed in lieu of  foreclosure  of any Mortgage  Loan and (ii) the
purchase by the Master  Servicer from the Trust Fund of all  remaining  Mortgage
Loans [in the related Loan Group] and all  property  acquired in respect of such
Mortgage Loans,  thereby  effecting early  retirement of the  Certificates.  The
Agreement permits,  but does not require, the Master Servicer to (i) purchase at
a price determined as provided in the Agreement all remaining Mortgage Loans [in
the related  Loan Group] and all  property  acquired in respect of any  Mortgage
Loan  or  (ii)  purchase  in  whole,  but  not in  part,  all  of the  [related]
Certificates from the Holders thereof;  provided,  that any such option may only
be exercised if the Pool Stated Principal  Balance of the Mortgage Loans [in the
related Loan Group] as of the  Distribution  Date upon which the proceeds of any
such  purchase  are  distributed  is less than ten percent of the  Cut-off  Date
Principal Balance of the Mortgage Loans Group [in the related Loan Group].

     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.

                                  EXHIBIT B-6
<PAGE>

     IN WITNESS  WHEREOF,  the Trustee has caused  this  Certificate  to be duly
executed.

     Dated:                                  [TRUSTEE],
           ----------------

                                             as Trustee

                                             By:
                                                --------------------------------
                                             Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

     This  is  one  of  the  Class  [M-  ]  Certificates   referred  to  in  the
within-mentioned Agreement.

                                             [TRUSTEE],
                                             as Certificate Registrar

                                             By:
                                                --------------------------------
                                             Authorized Signatory

                                  EXHIBIT B-7
<PAGE>

                                   ASSIGNMENT

     FOR  VALUE  RECEIVED,   the  undersigned  hereby  sell(s),   assign(s)  and
transfer(s)  unto (Please print or typewrite name and address  including  postal
zip code of assignee) a  Percentage  Interest  evidenced by the within  Mortgage
Pass-Through  Certificate and hereby  authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

     I (We) further direct the Certificate  Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

     Dated:
           -----------------------------   -------------------------------------
                                           Signature by or on behalf of assignor

                                           -------------------------------------
                                           Signature Guaranteed

                            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.

                                  EXHIBIT B-8

<PAGE>

                                    EXHIBIT C

                           FORM OF CLASS B CERTIFICATE

     THIS  CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE RELATED SENIOR
CERTIFICATES  AND THE RELATED  CLASS M  CERTIFICATES  [AND CLASS B-1] [CLASS B-2
CERTIFICATES] DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

     THIS  CERTIFICATE  HAS NOT  BEEN  AND  WILL  NOT BE  REGISTERED  UNDER  THE
SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR  TRANSFERRED  UNLESS IT IS REGISTERED  PURSUANT TO SUCH ACT AND
LAWS  OR  IS  SOLD  OR  TRANSFERRED  IN  TRANSACTIONS   WHICH  ARE  EXEMPT  FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT.

     NO TRANSFER OF THIS CERTIFICATE (OR ANY INTEREST HEREIN) MAY BE MADE TO ANY
PERSON,  UNLESS THE TRANSFEREE PROVIDES THE TRUSTEE,  THE COMPANY AND THE MASTER
SERVICER  WITH EITHER (A) A  CERTIFICATION  PURSUANT  TO SECTION  5.02(e) OF THE
AGREEMENT OR (B) AN OPINION OF COUNSEL  ACCEPTABLE  TO AND IN FORM AND SUBSTANCE
SATISFACTORY  TO THE TRUSTEE,  THE COMPANY AND THE MASTER SERVICER TO THE EFFECT
THAT  THE  PURCHASE  AND  HOLDING  OF  THIS  CERTIFICATE  IS  PERMISSIBLE  UNDER
APPLICABLE  LAW,WILL  NOT  CONSTITUTE  OR  RESULT  IN  A  NON-EXEMPT  PROHIBITED
TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF
1974,  AS AMENDED  ("ERISA"),  OR SECTION 4975 OF THE  INTERNAL  REVENUE CODE OF
1986,  AS AMENDED  (THE  "CODE") (OR  COMPARABLE  PROVISIONS  OF ANY  SUBSEQUENT
ENACTMENTS) AND WILL NOT SUBJECT THE TRUSTEE, THE COMPANY OR THE MASTER SERVICER
TO ANY OBLIGATION OR LIABILITY  (INCLUDING  OBLIGATIONS  AND  LIABILITIES  UNDER
ERISA OR  SECTION  4975 OF THE  CODE) IN  ADDITION  TO THOSE  UNDERTAKEN  IN THE
AGREEMENT,  WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE
COMPANY OR THE MASTER SERVICER.

                                  EXHIBIT C-1

<PAGE>

<TABLE>
<S>                                                        <C>
Certificate No. [____]                                     [____]% Pass-Through Rate

Class [B-___] Subordinate

Date of Pooling and Servicing Agreement                    Principal Balance of the Class B-___
and Cut-off Date:                                          Certificates as of the Cut-off Date: $________
[______________]

First Distribution Date:                                   Initial Certificate Principal Balance of this
[______________]                                           Certificate:
                                                           $[______________]
Master Servicer:
Residential Funding Company, LLC

Assumed Final Distribution Date:                           CUSIP
[______________]                                           [______________]
</TABLE>

                       MORTGAGE PASS-THROUGH CERTIFICATE,
                                 SERIES _______

     evidencing a percentage interest in the distributions allocable to the
     Class  B-___  Certificates  with  respect to a Trust  Fund  consisting
     primarily of a pool of conventional one- to four-family fixed interest
     rate  first  mortgage  loans  formed and sold by  RESIDENTIAL  FUNDING
     MORTGAGE SECURITIES I, INC.

     This  Certificate  is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Funding Mortgage
Securities I, Inc., the Master  Servicer,  the Trustee referred to below or GMAC
Mortgage Group, LLC or any of their affiliates. Neither this Certificate nor the
underlying  Mortgage Loans are guaranteed or insured by any governmental  agency
or  instrumentality or by Residential  Funding Mortgage  Securities I, Inc., the
Master  Servicer,  the  Trustee  or GMAC  Mortgage  Group,  LLC or any of  their
affiliates.  None of the Company, the Master Servicer,  GMAC Mortgage Group, LLC
or any of  their  affiliates  will  have  any  obligation  with  respect  to any
certificate  or other  obligation  secured by or payable  from  payments  on the
Certificates.

     This certifies that  _______________________ is the registered owner of the
Percentage  Interest  evidenced  by this  Certificate  (obtained by dividing the
Initial  Certificate  Principal  Balance of this  Certificate  by the  aggregate
Initial Certificate  Principal Balance of all Class B-___ Certificates,  both as
specified  above) in  certain  distributions  with  respect  to the  Trust  Fund
consisting  primarily  of  an  interest  in  a  pool  of  conventional  one-  to
four-family  fixed interest rate first  mortgage  loans (the "Mortgage  Loans"),
formed and sold by Residential Funding Mortgage Securities I, Inc.  (hereinafter
called the  "Company,"  which  term  includes  any  successor  entity  under the
Agreement  referred to below).  The Trust Fund was created  pursuant to a Series
Supplement,  dated as  specified  above,  to the  Standard  Terms of Pooling and
Servicing  Agreement dated as of  ________________  (together,  the "Pooling and
Servicing  Agreement" or the "Agreement") among the Company, the Master Servicer
and  ___________,  as  trustee  (the  "Trustee"),  a summary  of  certain of the
pertinent provisions of which is set forth

                                  EXHIBIT C-2

<PAGE>

hereafter.  To the extent not defined herein,  the capitalized terms used herein
have the meanings  assigned in the Agreement.  This  Certificate is issued under
and is subject to the terms,  provisions  and  conditions of the  Agreement,  to
which  Agreement  the  Holder of this  Certificate  by virtue of the  acceptance
hereof assents and by which such Holder is bound.

     Pursuant to the terms of the Agreement,  a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately  following (the  "Distribution  Date"),  commencing on the first
Distribution  Date specified above, to the Person in whose name this Certificate
is  registered  at the close of business on the last day (or if such last day is
not a Business Day, the Business Day immediately preceding such last day) of the
month next preceding the month of such  distribution  (the "Record Date"),  from
the [related] Available Distribution Amount in an amount equal to the product of
the  Percentage  Interest  evidenced  by this  Certificate  and the  amount  (of
interest and principal, if any) required to be distributed to Holders of Class B
Certificates on such Distribution Date.

     Distributions  on  this  Certificate  will  be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

     Notwithstanding  the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that purpose.  The Initial  Certificate  Principal Balance of
this  Certificate is set forth above. The Certificate  Principal  Balance hereof
will be reduced to the extent of the  distributions  allocable to principal  and
any Realized Losses allocable hereto.

     No transfer of this Class B  Certificate  will be made unless such transfer
is exempt from the  registration  requirements of the Securities Act of 1933, as
amended,  and any applicable state securities laws or is made in accordance with
said Act and laws.  In the event  that such a  transfer  is to be made,  (i) the
Trustee or the Company may  require an opinion of counsel  acceptable  to and in
form and  substance  satisfactory  to the  Trustee  and the  Company  that  such
transfer is exempt (describing the applicable  exemption and the basis therefor)
from  or is  being  made  pursuant  to  the  registration  requirements  of  the
Securities Act of 1933, as amended,  and of any applicable  statute of any state
and (ii) the transferee shall execute an investment letter in the form described
by Section  5.02(e) of the Agreement.  The Holder hereof desiring to effect such
transfer shall,  and does hereby agree to,  indemnify the Trustee,  the Company,
the  Master  Servicer  and the  Certificate  Registrar  acting  on behalf of the
Trustee  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.

     As  described  above,  no transfer  of this  Certificate  (or any  interest
herein) shall be made unless the  transferee  provides the Trustee,  the Company
and the Master  Servicer  with  either (a) a  certification  pursuant to Section
5.02(e)  of the  Agreement  stating  that  either (i) the  transferee  is not an
employee benefit or other plan subject to the prohibited  transaction provisions
of ERISA or Section 4975 of the Code (each, a "Plan"), or any Person (including,
without limitation, an investment manager, a named fiduciary or a trustee of any
Plan) who is using plan  assets,  within

                                  EXHIBIT C-3

<PAGE>

the meaning of the U.S. Department of Labor regulation  promulgated at 29 C.F.R.
ss.  2510.3-101,  as modified by Section  3(42) of ERISA,  of any Plan (each,  a
"Plan  Investor")  to  effect  such  acquisition  or (ii) the  transferee  is an
insurance company, the source of funds used to purchase or hold such Certificate
(or any interest therein) is an "insurance  company general account" (as defined
in U.S.  Department of Labor  Prohibited  Transaction  Class Exemption  ("PTCE")
95-60)  and the  conditions  set forth in  Sections I and III of PTCE 95-60 have
been  satisfied,  or (b) an  opinion of  counsel  acceptable  to and in form and
substance  satisfactory  to the Trustee,  the Company and the Master Servicer to
the effect that the  purchase  and holding of this  Certificate  is  permissible
under  applicable law, will not constitute or result in a non-exempt  prohibited
transaction  under  Section  406 of  ERISA  or  Section  4975  of the  Code  (or
comparable  provisions of any subsequent  enactments),  and will not subject the
Trustee,  the Company or the Master  Servicer  to any  obligation  or  liability
(including  obligations or liabilities  under ERISA or Section 4975 of the Code)
in addition to those undertaken in the Agreement, which opinion of counsel shall
not be an expense of the Trustee, the Company or the Master Servicer.

     This Certificate is one of a duly authorized  issue of Certificates  issued
in several  Classes  designated  as Mortgage  Pass-Through  Certificates  of the
Series specified hereon (herein collectively called the "Certificates").

     The Certificates are limited in right of payment to certain collections and
recoveries  respecting the Mortgage Loans,  all as more  specifically  set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

     As provided in the Agreement, withdrawals from the Custodial Account and/or
the  Certificate  Account created for the benefit of  Certificateholders  may be
made  by the  Master  Servicer  from  time  to  time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the Company  and the Master  Servicer  of  advances  made,  or
certain expenses incurred, by either of them.

     The  Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Company,  the  Master  Servicer  and  the  Trustee  and the  rights  of the
Certificateholders  under the  Agreement at any time by the Company,  the Master
Servicer  and the  Trustee  with the  consent  of the  Holders  of  Certificates
evidencing in the aggregate not less than 66.6% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

                                  EXHIBIT C-4

<PAGE>

     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,  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 authorized  denominations  evidencing
the  same  Class  and  aggregate  Percentage  Interest  will  be  issued  to the
designated transferee or transferees.

     The  Certificates  are issuable  only as  registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service  charge  will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     The Company, the Master Servicer, the Trustee and the Certificate Registrar
and  any  agent  of  the  Company,  the  Master  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 neither the Company,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

     This Certificate  shall be governed by and construed in accordance with the
laws of the State of New York.

     The obligations created by the Agreement in respect of the Certificates and
the  Trust  Fund  created   thereby   shall   terminate   upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan [in the related
Loan Group] subject  thereto or the  disposition  of all property  acquired upon
foreclosure  or deed in lieu of  foreclosure  of any Mortgage  Loan and (ii) the
purchase by the Master  Servicer from the Trust Fund of all  remaining  Mortgage
Loans [in the related Loan Group] and all  property  acquired in respect of such
Mortgage Loans,  thereby  effecting early  retirement of the  Certificates.  The
Agreement permits,  but does not require, the Master Servicer to (i) purchase at
a price determined as provided in the Agreement all remaining Mortgage Loans [in
the related  Loan Group] and all  property  acquired in respect of any  Mortgage
Loan  or  (ii)  purchase  in  whole,  but  not in  part,  all  of the  [related]
Certificates from the Holders thereof;  provided,  that any such option may only
be exercised if the Pool Stated Principal  Balance of the Mortgage Loans [in the
related Loan Group] as of the  Distribution  Date upon which the proceeds of any
such  purchase  are  distributed  is less than ten percent of the  Cut-off  Date
Principal Balance of the Mortgage Loans Group [in the related Loan Group].

     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.

                                  EXHIBIT C-5

<PAGE>

     IN WITNESS  WHEREOF,  the Trustee has caused  this  Certificate  to be duly
executed.

         Dated: _____________________________            [TRUSTEE],

                                                         as Trustee

                                                         By:____________________

                                                         Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

     This  is  one  of  the  Class  [B-  ]  Certificates   referred  to  in  the
within-mentioned Agreement.

                                   [TRUSTEE],
                                   as Certificate Registrar

                                   By:_________________________________________
                                                 Authorized Signatory

                                  EXHIBIT C-6

<PAGE>

                                   ASSIGNMENT

     FOR  VALUE  RECEIVED,   the  undersigned  hereby  sell(s),   assign(s)  and
transfer(s)  unto (Please print or typewrite name and address  including  postal
zip code of assignee) a  Percentage  Interest  evidenced by the within  Mortgage
Pass-Through  Certificate and hereby  authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

     I (We) further direct the Certificate  Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

     Dated:________________________     _____________________________________
                                        Signature by or on behalf of assignor

                                        Signature Guaranteed

                           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.

                                  EXHIBIT C-7

<PAGE>

                                   EXHIBIT C-I

                           FORM OF CLASS P CERTIFICATE

     THIS  CERTIFICATE  HAS NOT  BEEN  AND  WILL  NOT BE  REGISTERED  UNDER  THE
SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR  TRANSFERRED  UNLESS IT IS REGISTERED  PURSUANT TO SUCH ACT AND
LAWS  OR  IS  SOLD  OR  TRANSFERRED  IN  TRANSACTIONS   WHICH  ARE  EXEMPT  FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT.

     NO TRANSFER OF THIS CERTIFICATE (OR ANY INTEREST HEREIN) MAY BE MADE TO ANY
PERSON,  UNLESS THE TRANSFEREE PROVIDES THE TRUSTEE,  THE COMPANY AND THE MASTER
SERVICER  WITH EITHER (A) A  CERTIFICATION  PURSUANT  TO SECTION  5.02(e) OF THE
AGREEMENT OR (B) AN OPINION OF COUNSEL  ACCEPTABLE  TO AND IN FORM AND SUBSTANCE
SATISFACTORY  TO THE TRUSTEE,  THE COMPANY AND THE MASTER SERVICER TO THE EFFECT
THAT  THE  PURCHASE  AND  HOLDING  OF  THIS  CERTIFICATE  IS  PERMISSIBLE  UNDER
APPLICABLE  LAW,  WILL NOT  CONSTITUTE  OR  RESULT  IN A  NON-EXEMPT  PROHIBITED
TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF
1974,  AS AMENDED  ("ERISA"),  OR SECTION 4975 OF THE  INTERNAL  REVENUE CODE OF
1986,  AS AMENDED  (THE  "CODE") (OR  COMPARABLE  PROVISIONS  OF ANY  SUBSEQUENT
ENACTMENTS) AND WILL NOT SUBJECT THE TRUSTEE, THE COMPANY OR THE MASTER SERVICER
TO ANY OBLIGATION OR LIABILITY  (INCLUDING  OBLIGATIONS  AND  LIABILITIES  UNDER
ERISA OR  SECTION  4975 OF THE  CODE) IN  ADDITION  TO THOSE  UNDERTAKEN  IN THE
AGREEMENT,  WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE
COMPANY OR THE MASTER SERVICER.

                                  EXHIBIT C-I-1

<PAGE>

<TABLE>
<S>                                                        <C>
Certificate No. [____]                                     [  ] Prepayment Charge

Class P Prepayment Charge [  ]

Date of Pooling and Servicing Agreement                    Aggregate Certificate Principal Balance of the Class P
and Cut-off Date:                                          Certificates as of the Cut-off Date: $0.00
[______________]

First Distribution Date:                                   Initial Certificate Principal Balance of this
[______________]                                           Certificate:
                                                           $[______________]

Master Servicer:                                           Percentage Interest of this Certificate: 100%
Residential Funding Company, LLC

Assumed Final Distribution Date:                           CUSIP
[______________]                                           [______________]
</TABLE>

                       MORTGAGE PASS-THROUGH CERTIFICATE,
                                 SERIES _______

        evidencing   a  percentage   interest  in  the   distributions
        allocable to the Class P Certificates  with respect to a Trust
        Fund consisting  primarily of a pool of  conventional  one- to
        four-family  fixed  interest rate first  mortgage loans formed
        and sold by RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

     This  Certificate  is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Funding Mortgage
Securities I, Inc., the Master  Servicer,  the Trustee referred to below or GMAC
Mortgage Group, LLC or any of their affiliates. Neither this Certificate nor the
underlying  Mortgage Loans are guaranteed or insured by any governmental  agency
or  instrumentality or by Residential  Funding Mortgage  Securities I, Inc., the
Master  Servicer,  the  Trustee  or GMAC  Mortgage  Group,  LLC or any of  their
affiliates.  None of the Company, the Master Servicer,  GMAC Mortgage Group, LLC
or any of  their  affiliates  will  have  any  obligation  with  respect  to any
certificate  or other  obligation  secured by or payable  from  payments  on the
Certificates.

     This certifies that  _______________________ is the registered owner of the
Percentage  Interest  evidenced  by this  Certificate  (obtained by dividing the
Initial  Certificate  Principal  Balance of this  Certificate  by the  aggregate
Initial  Certificate  Principal  Balance  of all Class P  Certificates,  both as
specified  above) in  certain  distributions  with  respect  to the  Trust  Fund
consisting  primarily  of  an  interest  in  a  pool  of  conventional  one-  to
four-family  fixed interest rate first  mortgage  loans (the "Mortgage  Loans"),
formed and sold by Residential Funding Mortgage Securities I, Inc.  (hereinafter
called the  "Company,"  which  term  includes  any  successor  entity  under the
Agreement  referred to below).  The Trust Fund was created  pursuant to a Series
Supplement,  dated as  specified  above,  to the  Standard  Terms of Pooling and
Servicing  Agreement dated as of  ________________  (together,  the "Pooling and
Servicing  Agreement" or the "Agreement") among the Company, the Master Servicer
and  ___________,  as  trustee  (the  "Trustee"),  a summary  of  certain of the
pertinent provisions of which is set forth hereafter.  To

                                  EXHIBIT C-I-2

<PAGE>

the extent not  defined  herein,  the  capitalized  terms used  herein  have the
meanings  assigned in the  Agreement.  This  Certificate  is issued under and is
subject to the terms,  provisions  and  conditions  of the  Agreement,  to which
Agreement  the Holder of this  Certificate  by virtue of the  acceptance  hereof
assents and by which such Holder is bound.

     Pursuant to the terms of the Agreement,  a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately  following (the  "Distribution  Date"),  commencing on the first
Distribution  Date specified above, to the Person in whose name this Certificate
is  registered  at the close of business on the last day (or if such last day is
not a Business Day, the Business Day immediately preceding such last day) of the
month next preceding the month of such  distribution  (the "Record Date"),  from
the [related] Available Distribution Amount in an amount equal to the product of
the  Percentage  Interest  evidenced  by this  Certificate  and the  amount  (of
interest and principal, if any) required to be distributed to Holders of Class P
Certificates on such Distribution Date.

     Distributions  on  this  Certificate  will  be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

     Notwithstanding  the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that purpose.

     No transfer of this Class P  Certificate  will be made unless such transfer
is exempt from the  registration  requirements of the Securities Act of 1933, as
amended,  and any applicable state securities laws or is made in accordance with
said Act and laws.  In the event  that such a  transfer  is to be made,  (i) the
Trustee or the Company may  require an opinion of counsel  acceptable  to and in
form and  substance  satisfactory  to the  Trustee  and the  Company  that  such
transfer is exempt (describing the applicable  exemption and the basis therefor)
from  or is  being  made  pursuant  to  the  registration  requirements  of  the
Securities Act of 1933, as amended,  and of any applicable  statute of any state
and (ii) the transferee shall execute an investment letter in the form described
by the Agreement.  The Holder hereof desiring to effect such transfer shall, and
does hereby agree to,  indemnify the Trustee,  the Company,  the Master Servicer
and the  Certificate  Registrar  acting  on behalf of the  Trustee  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.

     As  described  above,  no transfer  of this  Certificate  (or any  interest
herein) shall be made unless the  transferee  provides the Trustee,  the Company
and the Master  Servicer  with  either (a) a  certification  pursuant to Section
5.02(e) of the Agreement  stating that the transferee is not an employee benefit
or other  plan  subject to the  prohibited  transaction  provisions  of ERISA or
Section 4975 of the Code (each,  a "Plan"),  or any Person  (including,  without
limitation,  an insurance company  investing its general account,  an investment
manager,  a named  fiduciary or a trustee of any Plan) who is using plan assets,
within the meaning of the U.S. Department of Labor regulation  promulgated at 29
C.F.R. ss. 2510.3-101, as modified by Section 3(42) of ERISA, of any Plan (each,
a "Plan  Investor")  to effect  such  acquisition,  or (b) an opinion of counsel
acceptable to and in form and substance satisfactory to the Trustee, the Company
and the

                                  EXHIBIT C-I-3

<PAGE>

Master Servicer to the effect that the purchase and holding of this  Certificate
is  permissible  under  applicable  law,  will not  constitute  or  result  in a
non-exempt prohibited  transaction under Section 406 of ERISA or Section 4975 of
the Code (or comparable provisions of any subsequent  enactments),  and will not
subject the Trustee,  the Company or the Master  Servicer to any  obligation  or
liability  (including  obligations or liabilities under ERISA or Section 4975 of
the Code) in addition to those  undertaken  in the  Agreement,  which opinion of
counsel  shall not be an  expense  of the  Trustee,  the  Company  or the Master
Servicer.

     This Certificate is one of a duly authorized  issue of Certificates  issued
in several  Classes  designated  as Mortgage  Pass-Through  Certificates  of the
Series specified hereon (herein collectively called the "Certificates").

     The Certificates are limited in right of payment to certain collections and
recoveries  respecting the Mortgage Loans,  all as more  specifically  set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

     As provided in the Agreement, withdrawals from the Custodial Account and/or
the  Certificate  Account created for the benefit of  Certificateholders  may be
made  by the  Master  Servicer  from  time  to  time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the Company  and the Master  Servicer  of  advances  made,  or
certain expenses incurred, by either of them.

     The  Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Company,  the  Master  Servicer  and  the  Trustee  and the  rights  of the
Certificateholders  under the  Agreement at any time by the Company,  the Master
Servicer  and the  Trustee  with the  consent  of the  Holders  of  Certificates
evidencing in the aggregate not less than 66.6% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

     As provided in the Agreement and subject to certain limitations therein set
forth,  the  transfer of this  Certificate  is  registrable  in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee,  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 authorized  denominations  evidencing
the  same  Class  and  aggregate  Percentage  Interest  will  be  issued  to the
designated transferee or transferees.

                                  EXHIBIT C-I-4

<PAGE>

     The  Certificates  are issuable  only as  registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service  charge  will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     The Company, the Master Servicer, the Trustee and the Certificate Registrar
and  any  agent  of  the  Company,  the  Master  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 neither the Company,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

     This Certificate  shall be governed by and construed in accordance with the
laws of the State of New York.

     The obligations created by the Agreement in respect of the Certificates and
the  Trust  Fund  created   thereby   shall   terminate   upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan [in the related
Loan Group] subject  thereto or the  disposition  of all property  acquired upon
foreclosure  or deed in lieu of  foreclosure  of any Mortgage  Loan and (ii) the
purchase by the Master  Servicer from the Trust Fund of all  remaining  Mortgage
Loans [in the related Loan Group] and all  property  acquired in respect of such
Mortgage Loans,  thereby  effecting early  retirement of the  Certificates.  The
Agreement permits,  but does not require, the Master Servicer to (i) purchase at
a price determined as provided in the Agreement all remaining Mortgage Loans [in
the related  Loan Group] and all  property  acquired in respect of any  Mortgage
Loan  or  (ii)  purchase  in  whole,  but  not in  part,  all  of the  [related]
Certificates from the Holders thereof;  provided,  that any such option may only
be exercised if the Pool Stated Principal  Balance of the Mortgage Loans [in the
related Loan Group] as of the  Distribution  Date upon which the proceeds of any
such  purchase  are  distributed  is less than ten percent of the  Cut-off  Date
Principal Balance of the Mortgage Loans Group [in the related Loan Group].

     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.

                                  EXHIBIT C-I-5

<PAGE>

     IN WITNESS  WHEREOF,  the Trustee has caused  this  Certificate  to be duly
executed.

     Dated:______________________________               [TRUSTEE],

                                                        as Trustee

                                                        By:_____________________

                                                        Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

     This is one of the Class P Certificates referred to in the within-mentioned
Agreement.

                                   [TRUSTEE],
                                   as Certificate Registrar

                                   By:_________________________________________
                                   Authorized Signatory

                                  EXHIBIT C-I-6

<PAGE>

                                   ASSIGNMENT

     FOR  VALUE  RECEIVED,   the  undersigned  hereby  sell(s),   assign(s)  and
transfer(s)  unto (Please print or typewrite name and address  including  postal
zip code of assignee) a  Percentage  Interest  evidenced by the within  Mortgage
Pass-Through  Certificate and hereby  authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

     I (We) further direct the Certificate  Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

     Dated:____________________            _____________________________________
                                           Signature by or on behalf of assignor

                                           Signature Guaranteed

                            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.

                                  EXHIBIT C-I-7

<PAGE>

                                  EXHIBIT C-II

                        FORM OF CLASS SB-[ ] CERTIFICATE

     THIS  CERTIFICATE  IS  SUBORDINATED  IN  RIGHT  OF  PAYMENT  TO THE  SENIOR
CERTIFICATES,  THE CLASS M-1, CLASS M-2, CLASS M-3, [CLASS M-4, CLASS M-5, CLASS
M-6, CLASS M-7, CLASS M-8, CLASS M-9 AND CLASS M-10]  CERTIFICATES  AS DESCRIBED
IN THE AGREEMENT (AS DEFINED 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").  COUPLED WITH INTERESTS IN THE SWAP AGREEMENT AND
THE SB-AM SWAP AGREEMENT.

     THIS  CERTIFICATE  HAS NOT  BEEN  AND  WILL  NOT BE  REGISTERED  UNDER  THE
SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR  TRANSFERRED  UNLESS IT IS REGISTERED  PURSUANT TO SUCH ACT AND
LAWS  OR  IS  SOLD  OR  TRANSFERRED  IN  TRANSACTIONS   WHICH  ARE  EXEMPT  FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE  WITH THE  PROVISIONS  OF SECTION  5.02 OF THE POOLING AND  SERVICING
AGREEMENT (THE "AGREEMENT").

     NO TRANSFER OF THIS CERTIFICATE (OR ANY INTEREST HEREIN) MAY BE MADE TO ANY
PERSON,  UNLESS THE TRANSFEREE PROVIDES THE TRUSTEE,  THE COMPANY AND THE MASTER
SERVICER  WITH EITHER (A) A  CERTIFICATION  PURSUANT  TO SECTION  5.02(e) OF THE
AGREEMENT OR (B) AN OPINION OF COUNSEL  ACCEPTABLE  TO AND IN FORM AND SUBSTANCE
SATISFACTORY  TO THE TRUSTEE,  THE COMPANY AND THE MASTER SERVICER TO THE EFFECT
THAT  THE  PURCHASE  AND  HOLDING  OF  THIS  CERTIFICATE  IS  PERMISSIBLE  UNDER
APPLICABLE  LAW,  WILL NOT  CONSTITUTE  OR  RESULT  IN A  NON-EXEMPT  PROHIBITED
TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF
1974,  AS  AMENDED  ("ERISA"),  OR  SECTION  4975  OF THE  CODE  (OR  COMPARABLE
PROVISIONS OF ANY SUBSEQUENT  ENACTMENTS) AND WILL NOT SUBJECT THE TRUSTEE,  THE
COMPANY  OR THE  MASTER  SERVICER  TO ANY  OBLIGATION  OR  LIABILITY  (INCLUDING
OBLIGATIONS AND LIABILITIES UNDER ERISA OR SECTION 4975 OF THE CODE) IN ADDITION
TO THOSE  UNDERTAKEN IN THE AGREEMENT,  WHICH OPINION OF COUNSEL SHALL NOT BE AN
EXPENSE OF THE TRUSTEE, THE COMPANY OR THE MASTER SERVICER.

                                  EXHIBIT C-II-1

<PAGE>

<TABLE>
<S>                                                        <C>
Class SB-[ ] Subordinate                                   Certificate No. ___

Date of Pooling and Servicing Agreement                    Percentage Interest: ________%
and Cut-off Date:
[_______ 1, _______]

First Distribution Date:                                   Aggregate Initial Notional Principal Balance of the
[_______ 25, _______]                                      Class SB-[  ] Certificates: $_________

Master Servicer:                                           Initial Notional Balance of this Class SB-2
Residential Funding Company, LLC                           Certificate: $________

Maturity Date:                                             CUSIP
[______ 25, ________]                                      [______________]
</TABLE>

                       MORTGAGE PASS-THROUGH CERTIFICATE,
                                 SERIES _______

         evidencing   a  percentage   interest  in  the   distributions
         allocable to the Class SB-[ ]  Certificates  with respect to a
         Trust  Fund  consisting  primarily  of  a  pool  of  [one-  to
         four-family  residential,  hybrid  adjustable-rate  first lien
         mortgage loans with a negative  amortization  feature]  formed
         and sold by RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

     This  Certificate  is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Funding Mortgage
Securities I, Inc., the Master  Servicer,  the Trustee referred to below or GMAC
Mortgage Group, LLC or any of their affiliates. Neither this Certificate nor the
underlying  Mortgage Loans are guaranteed or insured by any governmental  agency
or  instrumentality or by Residential  Funding Mortgage  Securities I, Inc., the
Master  Servicer,  the  Trustee  or GMAC  Mortgage  Group,  LLC or any of  their
affiliates.  None of the Company, the Master Servicer,  GMAC Mortgage Group, LLC
or any of  their  affiliates  will  have  any  obligation  with  respect  to any
certificate  or other  obligation  secured by or payable  from  payments  on the
Certificates.

     This certifies that [ ] is the registered owner of the Percentage  Interest
evidenced by this Certificate in certain distributions with respect to the Trust
Fund  consisting  primarily  of an interest in a pool of  [conventional  one- to
four-family fix interest rate first lien mortgage loans] (the "Mortgage Loans"),
sold by Residential Funding Mortgage Securities I, Inc.  (hereinafter called the
"Company," which term includes any successor entity under the Agreement referred
to below).  The Trust  Fund was  created  pursuant  to a Pooling  and  Servicing
Agreement  dated as specified  above (the  "Agreement")  among the Company,  the
Master  Servicer and  _____________,  as trustee (the  "Trustee"),  a summary of
certain of the  pertinent  provisions  of which is set forth  hereafter.  To the
extent not defined herein,  the capitalized  terms used herein have the meanings
assigned in the  Agreement.  This  Certificate is issued under and is subject to
the terms,  provisions and conditions of the Agreement,  to which  Agreement the
Holder of this  Certificate by virtue of the acceptance  hereof,  assents and by
which such Holder is bound.

                                  EXHIBIT C-II-2

<PAGE>

     Pursuant to the terms of the Agreement,  a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of business on the last  Business Day of the month  immediately  preceding
the  month  of  such  distribution  (the  "Record  Date"),  from  the  Available
Distribution Amount in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount of interest and principal,  if any,
required  to be  distributed  to Holders of Class  SB-[ ]  Certificates  on such
Distribution Date.

     Distributions  on  this  Certificate  will  be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

     Notwithstanding  the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the  Trustee  for that  purpose.  The  Notional  Amount of this  Class SB-[ ]
Certificate as of any date of  determination  will be calculated as described in
the  Agreement.  This Class  SB-[ ]  Certificate  will  accrue  interest  at the
Pass-Through  Rate on the  Notional  Amount as indicated  in the  definition  of
Accrued  Certificate  Interest in the  Agreement.  This Class SB-[ ] Certificate
will not accrue interest on its Certificate Principal Balance.

     No  transfer  of this Class SB-[ ]  Certificate  will be made  unless  such
transfer is exempt from the  registration  requirements of the Securities Act of
1933,  as  amended,  and  any  applicable  state  securities  laws or is made in
accordance  with said Act and laws.  In the event that such a transfer  is to be
made,  (i) the  Trustee  or the  Company  may  require  an  opinion  of  counsel
acceptable  to and in form and  substance  satisfactory  to the  Trustee and the
Company that such transfer is exempt  (describing  the applicable  exemption and
the  basis  therefor)  from  or is  being  made  pursuant  to  the  registration
requirements  of the Securities  Act of 1933, as amended,  and of any applicable
statute of any state and (ii) the transferee shall execute an investment  letter
in the form  described by the  Agreement.  The Holder hereof  desiring to effect
such  transfer  shall,  and does hereby agree to,  indemnify  the  Trustee,  the
Company,  the Master Servicer and the Certificate  Registrar acting on behalf of
the Trustee  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.

     As  described  above,  no transfer  of this  Certificate  (or any  interest
herein) shall be made unless the  transferee  provides the Trustee,  the Company
and the Master  Servicer  with  either (a) a  certification  pursuant to Section
5.02(e) of the Agreement  stating that the transferee is not an employee benefit
or other  plan  subject to the  prohibited  transaction  provisions  of ERISA or
Section 4975 of the Code (each,  a "Plan"),  or any Person  (including,  without
limitation,  an insurance company  investing its general account,  an investment
manager,  a named  fiduciary or a trustee of any Plan) who is using plan assets,
within the meaning of the U.S. Department of Labor regulation  promulgated at 29
C.F.R. ss. 2510.3-101, as modified by Section 3(42) of ERISA, of any Plan (each,
a "Plan  Investor")  to effect  such  acquisition,  or (b) an opinion of counsel
acceptable to and in form and substance satisfactory to the Trustee, the Company
and the

                                  EXHIBIT C-II-3

<PAGE>

Master Servicer to the effect that the purchase and holding of this  Certificate
is  permissible  under  applicable  law,  will not  constitute  or  result  in a
non-exempt prohibited  transaction under Section 406 of ERISA or Section 4975 of
the Code (or comparable provisions of any subsequent  enactments),  and will not
subject the Trustee,  the Company or the Master  Servicer to any  obligation  or
liability  (including  obligations or liabilities under ERISA or Section 4975 of
the Code) in addition to those  undertaken  in the  Agreement,  which opinion of
counsel  shall not be an  expense  of the  Trustee,  the  Company  or the Master
Servicer.

     This Certificate is one of a duly authorized  issue of Certificates  issued
in several  Classes  designated  as Mortgage  Pass-Through  Certificates  of the
Series specified hereon (herein collectively called the "Certificates").

     The Certificates are limited in right of payment to certain collections and
recoveries  respecting the Mortgage Loans,  all as more  specifically  set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

     As provided in the Agreement, withdrawals from the Custodial Account and/or
the  Certificate  Account created for the benefit of  Certificateholders  may be
made  by the  Master  Servicer  from  time  to  time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the Company  and the Master  Servicer  of  advances  made,  or
certain expenses incurred, by either of them.

     The  Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Company,  the  Master  Servicer  and  the  Trustee  and the  rights  of the
Certificateholders  under the  Agreement  from time to time by the Company,  the
Master  Servicer and the Trustee with the consent of the Holders of Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

     As provided in the Agreement and subject to certain limitations therein set
forth,  the  transfer of this  Certificate  is  registrable  in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee,  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 authorized  denominations  evidencing
the  same  Class  and  aggregate  Percentage  Interest  will  be  issued  to the
designated transferee or transferees.

                                  EXHIBIT C-II-4

<PAGE>

     The  Certificates  are issuable  only as  registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service  charge  will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     The Company, the Master Servicer,  the Trustee,  the Certificate  Registrar
and  any  agent  of  the  Company,  the  Master  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 neither the Company,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

     This Certificate  shall be governed by and construed in accordance with the
laws of the State of New York.

     The obligations created by the Agreement in respect of the Certificates and
the  Trust  Fund  created   thereby   shall   terminate   upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage  Loan, and (ii) the purchase by the Master  Servicer
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans,  thereby  effecting  early  retirement  of the
Certificates.  The Agreement permits,  but does not require, the Master Servicer
(i) to  purchase,  at a price  determined  as  provided  in the  Agreement,  all
remaining  Mortgage  Loans and all property  acquired in respect of any Mortgage
Loan or (ii) to purchase in whole, but not in part, all of the Certificates from
the Holders thereof, provided, that any such option may only be exercised if the
Stated Principal Balance before giving effect to the distributions to be made on
such  Distribution  Date of the Mortgage Loans, as of the Distribution Date upon
which the proceeds of any such purchase are distributed is less than ten percent
of the Cut-off Date Principal Balance of the Mortgage Loans.

     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.

                            [Signature Page Follows]

                                  EXHIBIT C-II-5

<PAGE>

     IN WITNESS  WHEREOF,  the Trustee has caused  this  Certificate  to be duly
executed.

     Dated: _____________________________               [TRUSTEE],

                                                        as Trustee

                                                        By:_____________________

                                                        Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

     This  is  one  of  the  Class  SB-[  ]  Certificates  referred  to  in  the
within-mentioned Agreement.

                                   [TRUSTEE],
                                   as Certificate Registrar

                                   By:_________________________________________
                                   Authorized Signatory

                                  EXHIBIT C-II-6

<PAGE>

                                   ASSIGNMENT

     FOR  VALUE  RECEIVED,   the  undersigned  hereby  sell(s),   assign(s)  and
transfer(s)  unto (Please print or typewrite name and address  including  postal
zip code of assignee) a  Percentage  Interest  evidenced by the within  Mortgage
Pass-Through  Certificate and hereby  authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

     I (We) further direct the Certificate  Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

     Dated:________________________        _____________________________________
                                           Signature by or on behalf of assignor

                                           Signature Guaranteed

                            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.

                                  EXHIBIT C-II-7

<PAGE>

                                    EXHIBIT D

                           FORM OF CLASS R CERTIFICATE

     THIS  CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED  STATES
PERSON OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

     SOLELY  FOR  U.S.  FEDERAL  INCOME  TAX  PURPOSES,  THIS  CERTIFICATE  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 (THE "CODE").

     NO TRANSFER OF THIS CERTIFICATE (OR ANY INTEREST HEREIN) MAY BE MADE TO ANY
PERSON,  UNLESS THE TRANSFEREE PROVIDES THE TRUSTEE,  THE COMPANY AND THE MASTER
SERVICER  WITH EITHER (A) A  CERTIFICATION  PURSUANT  TO SECTION  5.02(e) OF THE
AGREEMENT OR (B) AN OPINION OF COUNSEL  ACCEPTABLE  TO AND IN FORM AND SUBSTANCE
SATISFACTORY  TO THE TRUSTEE,  THE COMPANY AND THE MASTER SERVICER TO THE EFFECT
THAT  THE  PURCHASE  AND  HOLDING  OF  THIS  CERTIFICATE  IS  PERMISSIBLE  UNDER
APPLICABLE  LAW,  WILL NOT  CONSTITUTE  OR  RESULT  IN A  NON-EXEMPT  PROHIBITED
TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF
1974,  AS  AMENDED  ("ERISA"),  OR  SECTION  4975  OF THE  CODE  (OR  COMPARABLE
PROVISIONS OF ANY SUBSEQUENT  ENACTMENTS) AND WILL NOT SUBJECT THE TRUSTEE,  THE
COMPANY  OR THE  MASTER  SERVICER  TO ANY  OBLIGATION  OR  LIABILITY  (INCLUDING
OBLIGATIONS AND LIABILITIES UNDER ERISA OR SECTION 4975 OF THE CODE) IN ADDITION
TO THOSE  UNDERTAKEN IN THE AGREEMENT,  WHICH OPINION OF COUNSEL SHALL NOT BE AN
EXPENSE OF THE TRUSTEE, THE COMPANY OR THE MASTER SERVICER.

     ANY RESALE,  TRANSFER OR OTHER  DISPOSITION OF THIS CERTIFICATE MAY BE MADE
ONLY IF THE  PROPOSED  TRANSFEREE  PROVIDES A TRANSFER  AFFIDAVIT  TO THE MASTER
SERVICER AND THE TRUSTEE THAT (1) SUCH  TRANSFEREE IS NOT (A) THE UNITED STATES,
ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION OF THE UNITED STATES,
OR  ANY  AGENCY  OR  INSTRUMENTALITY  OF ANY OF THE  FOREGOING  (OTHER  THAN  AN
INSTRUMENTALITY  WHICH IS A CORPORATION  IF ALL OF ITS ACTIVITIES ARE SUBJECT TO
TAX AND EXCEPT FOR  FREDDIE  MAC, A MAJORITY  OF ITS BOARD OF  DIRECTORS  IS NOT
SELECTED BY SUCH GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL
ORGANIZATION,  OR ANY AGENCY OR INSTRUMENTALITY OF EITHER OF THE FOREGOING,  (C)
ANY ORGANIZATION (OTHER THAN CERTAIN FARMERS' COOPERATIVES  DESCRIBED IN SECTION
521 OF THE CODE)  WHICH IS EXEMPT  FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS  SUCH  ORGANIZATION  IS SUBJECT TO THE TAX  IMPOSED BY SECTION 511 OF THE
CODE (INCLUDING THE TAX IMPOSED BY SECTION 511 OF THE CODE ON UNRELATED BUSINESS
TAXABLE  INCOME),  (D) RURAL  ELECTRIC

                                  EXHIBIT D-1

<PAGE>

AND  TELEPHONE COOPERATIVES  DESCRIBED IN  SECTION 1381(A) (2) (C)  OF THE CODE,
(E) AN ELECTING  LARGE  PARTNERSHIP  UNDER SECTION  775(A) OF THE CODE (ANY SUCH
PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), (C), (D) OR (E) BEING HEREIN
REFERRED TO AS A "DISQUALIFIED ORGANIZATION"), OR (F) AN AGENT OF A DISQUALIFIED
ORGANIZATION,  (2) NO PURPOSE OF SUCH  TRANSFER IS TO IMPEDE THE  ASSESSMENT  OR
COLLECTION  OF  TAX  AND  (3)  SUCH  TRANSFEREE   SATISFIES  CERTAIN  ADDITIONAL
CONDITIONS  RELATING TO THE  FINANCIAL  CONDITION  OF THE  PROPOSED  TRANSFEREE.
NOTWITHSTANDING  THE  REGISTRATION IN THE CERTIFICATE  REGISTER OR ANY TRANSFER,
SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED  ORGANIZATION OR
AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE
OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE
A CERTIFICATEHOLDER  FOR ANY PURPOSE HEREUNDER,  INCLUDING,  BUT NOT LIMITED TO,
THE  RECEIPT  OF  DISTRIBUTIONS  ON  THIS  CERTIFICATE.   EACH  HOLDER  OF  THIS
CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE  SHALL BE DEEMED TO HAVE CONSENTED
TO THE PROVISIONS OF THIS PARAGRAPH.

                                  EXHIBIT D-2

<PAGE>

<TABLE>
<S>                                                        <C>
Certificate No. [____]                                     [____]% Pass-Through Rate

Class [R-___] Senior

Date of Pooling and Servicing Agreement                    Aggregate Initial Certificate Principal Balance of the
and Cut-off Date:                                          Class R-___ Certificates: $100.00
[______________]

First Distribution Date:                                   Initial Certificate Principal Balance of this
[______________]                                           Certificate:
                                                           $[______________]

Master Servicer:                                           Percentage Interest: _____%
Residential Funding Company, LLC

Assumed Final Distribution Date:                           CUSIP
[______________]                                           [______________]
</TABLE>

                       MORTGAGE PASS-THROUGH CERTIFICATE,
                                 SERIES _______

         evidencing   a  percentage   interest  in  the   distributions
         allocable to the Class R[-__]  Certificates  with respect to a
         Trust Fund consisting primarily of a pool of conventional one-
         to four-family fixed interest rate first mortgage loans formed
         and sold by RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

     This  Certificate  is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Funding Mortgage
Securities I, Inc., the Master  Servicer,  the Trustee referred to below or GMAC
Mortgage Group, LLC or any of their affiliates. Neither this Certificate nor the
underlying  Mortgage Loans are guaranteed or insured by any governmental  agency
or  instrumentality or by Residential  Funding Mortgage  Securities I, Inc., the
Master  Servicer,  the  Trustee  or GMAC  Mortgage  Group,  LLC or any of  their
affiliates.  None of the Company, the Master Servicer,  GMAC Mortgage Group, LLC
or any of  their  affiliates  will  have  any  obligation  with  respect  to any
certificate  or other  obligation  secured by or payable  from  payments  on the
Certificates.

     This  certifies that is the  registered  owner of the  Percentage  Interest
evidenced by this  Certificate  (obtained  by dividing  the Initial  Certificate
Principal  Balance of this  Certificate  by the  aggregate  Initial  Certificate
Principal Balance of all Class R[-__] Certificates,  both as specified above) in
certain  distributions with respect to the Trust Fund consisting primarily of an
interest in a pool of conventional one- to four-family fixed interest rate first
mortgage loans (the "Mortgage  Loans"),  formed and sold by Residential  Funding
Mortgage  Securities  I, Inc.  (hereinafter  called  the  "Company,"  which term
includes any successor entity under the Agreement  referred to below). The Trust
Fund was created pursuant to a Series  Supplement,  dated as specified above, to
the   Standard   Terms  of  Pooling  and   Servicing   Agreement   dated  as  of
________________  (together,  the  "Pooling  and  Servicing  Agreement"  or  the
"Agreement") among the Company, the Master Servicer and ___________,  as trustee
(the  "Trustee"),  a summary of certain of the pertinent  provisions of which is
set forth  hereafter.  To

                                  EXHIBIT D-3

<PAGE>

the extent not  defined  herein,  the  capitalized  terms used  herein  have the
meanings  assigned in the  Agreement.  This  Certificate  is issued under and is
subject to the terms,  provisions  and  conditions  of the  Agreement,  to which
Agreement  the Holder of this  Certificate  by virtue of the  acceptance  hereof
assents and by which such Holder is bound.

     Pursuant to the terms of the Agreement,  a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of  business  on the last day (or if such last day is not a Business  Day,
the Business Day immediately  preceding such last day) of the month  immediately
preceding the month of such distribution (the "Record Date"), from the [related]
Available  Distribution  Amount  in an  amount  equal  to  the  product  of  the
Percentage  Interest  evidenced by this  Certificate and the amount (of interest
and  principal,  if any)  required  to be  distributed  to  Holders  of  Class R
Certificates on such Distribution Date.

     Each Holder of this  Certificate  will be deemed to have agreed to be bound
by the  restrictions  set forth in the  Agreement  to the  effect  that (i) each
person holding or acquiring any Ownership Interest in this Certificate must be a
United  States  Person and a  Permitted  Transferee,  (ii) the  transfer  of any
Ownership  Interest in this Certificate will be conditioned upon the delivery to
the Trustee of,  among other  things,  an  affidavit  to the effect that it is a
United States Person and Permitted Transferee,  (iii) any attempted or purported
transfer of any  Ownership  Interest in this  Certificate  in  violation of such
restrictions  will be  absolutely  null and void and will  vest no rights in the
purported  transferee,  and (iv) if any person other than a United States Person
and a Permitted  Transferee  acquires any Ownership Interest in this Certificate
in violation of such restrictions,  then the Company will have the right, in its
sole  discretion and without notice to the Holder of this  Certificate,  to sell
this Certificate to a purchaser selected by the Company,  which purchaser may be
the Company,  or any affiliate of the Company,  on such terms and  conditions as
the Company may choose.

     Notwithstanding  the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that purpose.  The Initial  Certificate  Principal Balance of
this  Certificate is set forth above. The Certificate  Principal  Balance hereof
will be reduced to the extent of  distributions  allocable to principal  and any
Realized  Losses  allocable  hereto.   Notwithstanding   the  reduction  of  the
Certificate  Principal  Balance  hereof to zero,  this  Certificate  will remain
outstanding  under the  Agreement  and the  Holder  hereof  may have  additional
obligations with respect to this Certificate, including tax liabilities, and may
be entitled to certain additional  distributions  hereon, in accordance with the
terms and provisions of the Agreement.

     As  described  above,  no transfer  of this  Certificate  (or any  interest
herein) shall be made unless the  transferee  provides the Trustee,  the Company
and the Master  Servicer  with  either (a) a  certification  pursuant to Section
5.02(e) of the Agreement  stating that the transferee is not an employee benefit
or other  plan  subject to the  prohibited  transaction  provisions  of ERISA or
Section 4975 of the Code (each,  a "Plan"),  or any Person  (including,  without
limitation,  an insurance company  investing its general account,  an investment
manager,  a named  fiduciary or a trustee of any Plan) who is using plan assets,
within the meaning of the U.S. Department of Labor regulation  promulgated at 29
C.F.R. ss. 2510.3-101, as modified by Section 3(42) of

                                  EXHIBIT D-4

<PAGE>

ERISA, of any Plan  (each, a "Plan Investor")  to effect  such  acquisition,  or
(b) an opinion of counsel  acceptable to and in form and substance  satisfactory
to the  Trustee,  the  Company  and the Master  Servicer  to the effect that the
purchase and holding of this  Certificate is permissible  under  applicable law,
will not  constitute  or result in a  non-exempt  prohibited  transaction  under
Section 406 of ERISA or Section 4975 of the Code (or  comparable  provisions  of
any subsequent enactments), and will not subject the Trustee, the Company or the
Master  Servicer  to any  obligation  or  liability  (including  obligations  or
liabilities  under  ERISA or  Section  4975 of the  Code) in  addition  to those
undertaken in the Agreement, which opinion of counsel shall not be an expense of
the Trustee, the Company or the Master Servicer.

     This Certificate is one of a duly authorized  issue of Certificates  issued
in several  Classes  designated  as Mortgage  Pass-Through  Certificates  of the
Series specified hereon (herein collectively called the "Certificates").

     The Certificates are limited in right of payment to certain collections and
recoveries  respecting the Mortgage Loans,  all as more  specifically  set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

     As provided in the Agreement, withdrawals from the Custodial Account and/or
the  Certificate  Account created for the benefit of  Certificateholders  may be
made  by the  Master  Servicer  from  time  to  time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the Company  and the Master  Servicer  of  advances  made,  or
certain expenses incurred, by either of them.

     The  Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Company,  the  Master  Servicer  and  the  Trustee  and the  rights  of the
Certificateholders  under the  Agreement at any time by the Company,  the Master
Servicer  and the  Trustee  with the  consent  of the  Holders  of  Certificates
evidencing in the aggregate not less than 66.6% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

     As provided in the Agreement and subject to certain limitations therein set
forth,  the  transfer of this  Certificate  is  registrable  in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee,  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 authorized  denominations  evidencing
the  same  Class  and  aggregate  Percentage  Interest  will  be  issued  to the
designated transferee or transferees.

                                  EXHIBIT D-5

<PAGE>

     The  Certificates  are issuable  only as  registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service  charge  will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     The Company, the Master Servicer, the Trustee and the Certificate Registrar
and  any  agent  of  the  Company,  the  Master  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 neither the Company,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

     This Certificate  shall be governed by and construed in accordance with the
laws of the State of New York.

     The obligations created by the Agreement in respect of the Certificates and
the  Trust  Fund  created   thereby   shall   terminate   upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan [in the related
Loan Group] subject  thereto or the  disposition  of all property  acquired upon
foreclosure  or deed in lieu of  foreclosure  of any Mortgage  Loan and (ii) the
purchase by the Master  Servicer from the Trust Fund of all  remaining  Mortgage
Loans [in the related Loan Group] and all  property  acquired in respect of such
Mortgage Loans,  thereby  effecting early  retirement of the  Certificates.  The
Agreement permits,  but does not require, the Master Servicer to (i) purchase at
a price determined as provided in the Agreement all remaining Mortgage Loans [in
the related  Loan Group] and all  property  acquired in respect of any  Mortgage
Loan  or  (ii)  purchase  in  whole,  but  not in  part,  all  of the  [related]
Certificates from the Holders thereof;  provided,  that any such option may only
be exercised if the Pool Stated Principal  Balance of the Mortgage Loans [in the
related Loan Group] as of the  Distribution  Date upon which the proceeds of any
such  purchase  are  distributed  is less than ten percent of the  Cut-off  Date
Principal Balance of the Mortgage Loans Group [in the related Loan Group].

         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.

         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.

                                  EXHIBIT D-6

<PAGE>

     IN WITNESS  WHEREOF,  the Trustee has caused  this  Certificate  to be duly
executed.

     Dated:_____________________________                  [TRUSTEE],

                                                          as Trustee

                                                          By:___________________

                                                          Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

         This  is  one  of  the  Class  [R- ]  Certificates  referred  to in the
within-mentioned Agreement.

                                   [TRUSTEE],
                                   as Certificate Registrar

                                   By:_________________________________________
                                   Authorized Signatory

                                  EXHIBIT D-7

<PAGE>

                                   ASSIGNMENT

     FOR  VALUE  RECEIVED,   the  undersigned  hereby  sell(s),   assign(s)  and
transfer(s)  unto (Please print or typewrite name and address  including  postal
zip code of assignee) a  Percentage  Interest  evidenced by the within  Mortgage
Pass-Through  Certificate and hereby  authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

     I (We) further direct the Certificate  Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

     Dated:__________________________     _____________________________________
                                          Signature by or on behalf of assignor

                                          Signature Guaranteed

                            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.

                                  EXHIBIT D-8

<PAGE>

                                    EXHIBIT E

                        FORM OF SELLER/SERVICER CONTRACT

     This Seller/Servicer Contract (as may be amended, supplemented or otherwise
modified from time to time, this "Contract") is made this day of  _____________,
20__,  by and between  Residential  Funding  Company,  LLC, its  successors  and
assigns ("Residential  Funding") and (the  "Seller/Servicer," and, together with
Residential Funding, the "parties" and each, individually, a "party").

     WHEREAS, the Seller/Servicer desires to sell Loans to, and/or service Loans
for, Residential Funding, and Residential Funding desires to purchase Loans from
the  Seller/Servicer  and/or  have the  Seller/Servicer  service  various of its
Loans, pursuant to the terms of this Contract and the Residential Funding Seller
and Servicer Guides incorporated herein by reference,  as amended,  supplemented
or otherwise modified, from time to time (together, the "Guides").

     NOW, THEREFORE, in consideration of the premises, and the terms, conditions
and agreements set forth below, the parties agree as follows:

INCORPORATION OF GUIDES BY REFERENCE.

     The Seller/Servicer  acknowledges that it has received and read the Guides.
All provisions of the Guides are  incorporated by reference into and made a part
of this Contract, and shall be binding upon the parties; provided, however, that
the Seller/Servicer  shall be entitled to sell Loans to and/or service Loans for
Residential  Funding only if and for so long as it shall have been authorized to
do so by Residential Funding in writing.  Specific reference in this Contract to
particular  provisions of the Guides and not to other  provisions  does not mean
that those provisions of the Guides not specifically  cited in this Contract are
not applicable. All terms used herein shall have the same meanings as such terms
have in the Guides, unless the context clearly requires otherwise.

AMENDMENTS.

     This  Contract may not be amended or modified  orally,  and no provision of
this  Contract  may be waived or amended  except in writing  signed by the party
against whom  enforcement  is sought.  Such a written  waiver or amendment  must
expressly  reference this Contract.  However,  by their terms, the Guides may be
amended or  supplemented  by  Residential  Funding  from time to time.  Any such
amendment(s) to the Guides shall be binding upon the parties hereto.

REPRESENTATIONS AND WARRANTIES.

     A. Reciprocal Representations and Warranties.

     The Seller/Servicer and Residential Funding each represents and warrants to
the other that as of the date of this Contract:

                                  EXHIBIT E-1

<PAGE>

(1) Each party is duly organized,  validly existing,  and in good standing under
the laws of its jurisdiction of organization,  is qualified, if necessary, to do
business and in good standing in each jurisdiction in which it is required to be
so  qualified,  and has the  requisite  power and  authority  to enter into this
Contract and all other agreements which are contemplated by this Contract and to
carry out its  obligations  hereunder  and under the Guides and under such other
agreements.

(2) This Contract has been duly authorized, executed and delivered by each party
and constitutes a valid and legally binding  agreement of each party enforceable
in accordance with its terms.

(3) There is no action,  proceeding or investigation pending or threatened,  and
no basis  therefor is known to either  party,  that could affect the validity or
prospective validity of this Contract.

(4) Insofar as its capacity to carry out any  obligation  under this Contract is
concerned,   neither  party  is  in  violation  of  any  charter,   articles  of
incorporation,  bylaws,  certificates of formation,  limited  liability  company
agreement, mortgage, indenture,  indebtedness,  agreement, instrument, judgment,
decree,  order,  statute, rule or regulation and none of the foregoing adversely
affects its capacity to fulfill any of its obligations under this Contract.  Its
execution  of, and  performance  pursuant to, this Contract will not result in a
violation of any of the foregoing.

     B. Seller/Servicer's Representations, Warranties and Covenants.

     In addition to the  representations,  warranties  and covenants made by the
Seller/Servicer   pursuant  to  subparagraph   (a)  of  this  paragraph  3,  the
Seller/Servicer makes the representations, warranties and covenants set forth in
the Guides  and,  upon  request,  agrees to deliver to  Residential  Funding the
certified  Resolution of Board of Directors  which  authorizes the execution and
delivery of this Contract.

REMEDIES OF RESIDENTIAL FUNDING.

     If an Event of Seller Default or an Event of Servicer  Default shall occur,
Residential  Funding may, at its option,  exercise one or more of those remedies
set forth in the Guides.

SELLER/SERVICER'S STATUS AS INDEPENDENT CONTRACTOR.

     At no time  shall  the  Seller/Servicer  represent  that it is acting as an
agent of Residential Funding. The Seller/Servicer shall, at all times, act as an
independent contractor.

PRIOR AGREEMENTS SUPERSEDED.

     This  Contract  restates,  amends and  supersedes  any and all prior Seller
Contracts or Servicer Contracts between the parties except that any subservicing
agreement  executed by the  Seller/Servicer in connection with any loan-security
exchange transaction shall not be affected.

                                  EXHIBIT E-2

<PAGE>

ASSIGNMENT.

     This Contract may not be assigned or  transferred,  in whole or in part, by
the  Seller/Servicer  without the prior written consent of Residential  Funding.
Residential  Funding may sell,  assign,  convey,  hypothecate,  pledge or in any
other way transfer,  in whole or in part, without restriction,  its rights under
this Contract and the Guides with respect to any Commitment or Loan.

NOTICES.

     All notices, requests, demands or other communications that are to be given
under this Contract shall be in writing,  addressed to the  appropriate  parties
and sent by  telefacsimile  or by  overnight  courier or by United  States mail,
postage prepaid,  to the addresses and  telefacsimile  numbers  specified below.
However, another name, address and/or telefacsimile number may be substituted by
the  Seller/Servicer  pursuant  to the  requirements  of  this  paragraph  8, or
Residential Funding pursuant to an amendment to the Guides.

If to Residential  Funding,  notices must be sent to the appropriate  address or
telefacsimile number specified in the Guides.

If to the Seller/Servicer, notice must be sent to:

     Attention:
     Telefacsimile Number: (_____) _____-_________

JURISDICTION AND VENUE.

     Each of the parties irrevocably submits to the jurisdiction of any state or
federal court located in Hennepin County,  Minnesota,  over any action,  suit or
proceeding  to enforce or defend any right  under  this  Contract  or  otherwise
arising from any loan sale or servicing relationship existing in connection with
this  Contract,  and each of the parties  irrevocably  agrees that all claims in
respect of any such  action or  proceeding  may be heard or  determined  in such
state or federal court. Each of the parties irrevocably waives the defense of an
inconvenient  forum to the  maintenance of any such action or proceeding and any
other  substantive or procedural  rights or remedies it may have with respect to
the maintenance of any such action or proceeding in any such forum.  Each of the
parties agrees that a final  judgment in any such action or proceeding  shall be
conclusive and may be enforced in any other jurisdiction by suit on the judgment
or in any other manner  provided by law. Each of the parties  further agrees not
to institute  any legal  actions or  proceedings  against the other party or any
director,  officer,  employee,  attorney,  agent or property of the other party,
arising  out of or  relating  to  this  Contract  in any  court  other  than  as
hereinabove specified in this paragraph 9.

                                  EXHIBIT E-3

<PAGE>

MISCELLANEOUS.

     This Contract,  including all documents  incorporated by reference  herein,
constitutes the entire  understanding  between the parties hereto and supersedes
all other agreements, covenants, representations, warranties, understandings and
communications between the parties, whether written or oral, with respect to the
transactions  contemplated by this Contract.  All paragraph  headings  contained
herein  are for  convenience  only and  shall not be  construed  as part of this
Contract.  Any provision of this Contract that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining portions
hereof or affecting  the  validity or  enforceability  of such  provision in any
other jurisdiction,  and, to this end, the provisions hereof are severable. This
Contract  shall be governed by, and construed  and enforced in accordance  with,
applicable federal laws and the laws of the State of Minnesota.

                                  EXHIBIT E-4

<PAGE>

     IN WITNESS WHEREOF, the duly authorized officers of the Seller/Servicer and
Residential Funding have executed this  Seller/Servicer  Contract as of the date
first above written.

<TABLE>
<S>                                             <C>
ATTEST:                                         SELLER/SERVICER
[Corporate Seal]                                (Name of Seller/Servicer)

By:___________________________________          By:_____________________________________
           (Signature)                                         (Signature)

By:___________________________________          By:_____________________________________
             (Typed Name)                                      (Typed Name)

Title:________________________________          Title:__________________________________

________________________________________________________________________________________

ATTEST:                                               RESIDENTIAL FUNDING COMPANY, LLC
[Corporate Seal]

By:___________________________________          By:_____________________________________
           (Signature)                                         (Signature)

By:                                             By:

Title:                                          Title:
</TABLE>

                                  EXHIBIT E-5

<PAGE>

                                    EXHIBIT F

                          FORMS OF REQUEST FOR RELEASE

DATE:
TO:
RE:      REQUEST FOR RELEASE OF DOCUMENTS

In connection with the  administration of the pool of Mortgage Loans held by you
for the  referenced  pool,  we request  the  release of the  Mortgage  Loan File
described below.

Series Supplement, to the Standard Terms of Pooling and Servicing Agreement,

Dated:
Series#:
Account#:
Pool#:
Loan#:
Borrower Name(s):

Reason for Document Request:        (circle one)

         Mortgage Loan Prepaid in Full      Mortgage Loan Repurchased

"We hereby  certify  that all amounts  received or to be received in  connection
with such  payments  which are required to be deposited  have been or will be so
deposited as provided in the Pooling and Servicing Agreement."

Residential Funding Company, LLC

Authorized Signature
*******************************************************************************

TO  CUSTODIAN/TRUSTEE:  Please acknowledge this request, and check off documents
being  enclosed  with a copy of this form.  You should retain this form for your
files in accordance with the terms of the Pooling and Servicing Agreement.

Enclosed Documents:  [ ] Promissory Note
                     [ ] Primary Insurance Policy
                     [ ] Mortgage or Deed of Trust
                     [ ] Assignment(s) of Mortgage or Deed of Trust
                     [ ] Title Insurance Policy
                     [ ] Other:

Name:
Title:
Date:

                                  EXHIBIT F-1

<PAGE>

                                   EXHIBIT G-1

                    FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

STATE OF )
         ) ss.:
COUNTY OF)

     [NAME OF OFFICER], being first duly sworn, deposes and says:

     1. That he is [Title of Officer] of [Name of Owner]  (record or  beneficial
owner of the Mortgage Pass-Through  Certificates,  Series _______,  Class R[-__]
(the  "Owner")),  a  [savings  institution]  [corporation]  duly  organized  and
existing  under the laws of [the State of ] [the  United  States],  on behalf of
which he makes this affidavit and agreement.

     2. That the Owner (i) is not and will not be a "disqualified  organization"
or an electing large  partnership as of [date of transfer] within the meaning of
Sections 860E(e)(5) and 775, respectively, of the Internal Revenue Code of 1986,
as amended (the "Code") or an electing large partnership under Section 775(a) of
the Code,  (ii) will endeavor to remain other than a  disqualified  organization
for  so  long  as  it  retains  its  ownership  interest  in  the  Class  R[-__]
Certificates,  and (iii) is acquiring the Class R[-__]  Certificates for its own
account  or for the  account of another  Owner  from  which it has  received  an
affidavit and  agreement in  substantially  the same form as this  affidavit and
agreement.  (For this purpose, a "disqualified  organization"  means an electing
large partnership under Section 775 of the Code, the United States, any state or
political  subdivision  thereof,  any  agency or  instrumentality  of any of the
foregoing  (other than an  instrumentality  all of the  activities  of which are
subject to tax and,  except for the Federal Home Loan  Mortgage  Corporation,  a
majority of whose board of directors  is not  selected by any such  governmental
entity) or any foreign government,  international  organization or any agency or
instrumentality of such foreign  government or organization,  any rural electric
or telephone  cooperative,  or any  organization  (other than  certain  farmers'
cooperatives)  that is  generally  exempt  from  federal  income tax unless such
organization is subject to the tax on unrelated business taxable income).

     3.  That the  Owner  is aware  (i) of the tax  that  would  be  imposed  on
transfers of Class R[-__] Certificates to disqualified organizations or electing
large  partnerships,  under the Code,  that  applies to all  transfers  of Class
R[-__]  Certificates  after March 31,  1988;  (ii) that such tax would be on the
transferor  (or, with respect to transfers to electing  large  partnerships,  on
each such  partnership),  or, if such transfer is through an agent (which person
includes a broker, nominee or middleman) for a disqualified organization, on the
agent;  (iii) that the person  (other than with respect to transfers to electing
large partnerships)  otherwise liable for the tax shall be relieved of liability
for the tax if the  transferee  furnishes to such person an  affidavit  that the
transferee is not a disqualified organization and, at the time of transfer, such
person does not have actual knowledge that the affidavit is false; and (iv) that
the Class R[-__] Certificates may be "noneconomic residual interests" within the
meaning of Treasury  regulations  promulgated  pursuant to the Code and that the
transferor of a noneconomic  residual  interest will remain liable

                                 EXHIBIT G-1-1

<PAGE>

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.

     4. That the Owner is aware of the tax  imposed on a  "pass-through  entity"
holding  Class  R[-__]  Certificates  if either  the  pass-through  entity is an
electing  large  partnership  under  Section  775 of the  Code or if at any time
during the taxable year of the pass-through  entity a disqualified  organization
is the record holder of an interest in such entity.  (For this purpose,  a "pass
through  entity"  includes  a  regulated   investment  company,  a  real  estate
investment  trust or common  trust fund,  a  partnership,  trust or estate,  and
certain cooperatives.)

     5. The Owner is either  (i)  a  citizen or  resident  of the United States,
(ii) a  corporation,  partnership  or other entity treated as a corporation or a
partnership for U.S.  federal income tax purposes and created or organized in or
under the laws of the  United  States,  any state  thereof  or the  District  of
Columbia (other than a partnership that is not treated as a United States person
under any applicable Treasury regulations), (iii) an estate that is described in
Section 7701(a)(30)(D) of the Code, or (iv) a trust that is described in Section
7701(a)(30)(E) of the Code.

     6. The  Owner  hereby   agrees  that  it will  not cause  income  from  the
Class  R[-__]   Certificates  to  be   attributable   to  a  foreign   permanent
establishment  or fixed base  (within  the meaning of an  applicable  income tax
treaty) of the Owner of another United States taxpayer.

     7. That the Owner is aware that the Trustee  will not register the transfer
of any Class R[- __]  Certificates  unless the transferee,  or the  transferee's
agent,  delivers  to it an  affidavit  and  agreement,  among other  things,  in
substantially the same form as this affidavit and agreement. The Owner expressly
agrees  that it will not  consummate  any such  transfer if it knows or believes
that any of the  representations  contained in such  affidavit and agreement are
false.

     8. That the Owner has  reviewed the  restrictions  set forth on the face of
the Class  R[-__]  Certificates  and the  provisions  of Section  5.02(f) of the
Pooling and Servicing  Agreement under which the Class R[-__]  Certificates were
issued (in  particular,  clause  (iii)(A) and (iii)(B) of Section  5.02(f) which
authorize  the Trustee to deliver  payments to a person other than the Owner and
negotiate  a  mandatory  sale by the  Trustee in the event the Owner  holds such
Certificates in violation of Section 5.02(f)).  The Owner expressly agrees to be
bound by and to comply with such restrictions and provisions.

     9. That the Owner consents to any additional  restrictions  or arrangements
that shall be deemed necessary upon advice of counsel to constitute a reasonable
arrangement  to ensure that the Class  R[-__]  Certificates  will only be owned,
directly or indirectly, by an Owner that is not a disqualified organization.

     10. The Owner's Taxpayer Identification Number is ________________.

     11.  This  affidavit  and  agreement  relates  only  to  the  Class  R[-__]
Certificates  held by the Owner and not to any other  holder of the Class R[-__]
Certificates. The Owner understands that the liabilities described herein relate
only to the Class R[-__] Certificates.

                                  EXHIBIT G-1-2

<PAGE>

     12.  That no purpose of the Owner  relating  to the  transfer of any of the
Class R[-__] Certificates by the Owner is or will be to impede the assessment or
collection of any tax; in making this  representation,  the Owner  warrants that
the Owner is familiar  with (i)  Treasury  Regulation  Section  1.860E-1(c)  and
recent amendments thereto,  effective as of July 19, 2002, and (ii) the preamble
describing the adoption of the amendments to such regulation,  which is attached
hereto as Exhibit 1.

     13. That the Owner has no present  knowledge or expectation that it will be
unable  to  pay  any  United  States  taxes  owed  by it so  long  as any of the
Certificates remain outstanding.  In this regard, the Owner hereby represents to
and for the  benefit  of the  person  from whom it  acquired  the  Class  R[-__]
Certificate  that the Owner  intends to pay taxes  associated  with holding such
Class R[- __]  Certificate as they become due, fully  understanding  that it may
incur tax  liabilities in excess of any cash flows generated by the Class R[-__]
Certificate.

     14. That the Owner has no present  knowledge  or  expectation  that it will
become insolvent or subject to a bankruptcy proceeding for so long as any of the
Class R[-__] Certificates remain outstanding.

     15. (a) The Owner is not an employee  benefit plan or other plan subject to
the prohibited transaction provisions of the Employee Retirement Income Security
Act of 1974, as amended ("ERISA"), or Section 4975 of the Code (each, a "Plan"),
or any Person (including, without limitation, an insurance company investing its
general account,  an investment  manager,  a named fiduciary or a trustee of any
Plan) who is using plan  assets,  within the meaning of the U.S.  Department  of
Labor regulation promulgated at 29 C.F.R. ss. 2510.3-101, as modified by Section
3(42)  of  ERISA,  of  any  Plan  (each,  a  "Plan  Investor")  to  effect  such
acquisition; or

     (b) The Owner has provided the Trustee, the Company and the Master Servicer
with an opinion of counsel acceptable to and in form and substance  satisfactory
to the  Trustee,  the  Company  and the Master  Servicer  to the effect that the
purchase and holding of Certificates is permissible  under  applicable law, will
not constitute or result in any non-exempt prohibited  transaction under Section
406 of  ERISA or  Section  4975 of the Code  (or  comparable  provisions  of any
subsequent  enactments)  and will not  subject the  Trustee,  the Company or the
Master  Servicer  to any  obligation  or  liability  (including  obligations  or
liabilities  under  ERISA or  Section  4975 of the  Code) in  addition  to those
undertaken  in the Pooling and  Servicing  Agreement,  which  opinion of counsel
shall not be an expense of the Trustee, the Company or the Master Servicer.

     In addition,  the Owner hereby  certifies,  represents and warrants to, and
covenants  with,  the  Company,  the  Trustee and the Master  Servicer  that the
Purchaser  will not transfer such  Certificates  to any  transferee  unless such
transferee meets the requirements set forth in either (a) or (b) above.

     Capitalized  terms used but not  defined  herein  shall  have the  meanings
assigned in the Pooling and Servicing Agreement.

                                  EXHIBIT G-1-3

<PAGE>

     IN WITNESS WHEREOF,  the Owner has caused this instrument to be executed on
its behalf,  pursuant to the authority of its Board of Directors,  by its [Title
of Officer]  and its  corporate  seal to be hereunto  attached,  attested by its
[Assistant] Secretary, this day of _____,___ 200__.

                                      [NAME OF OWNER]

                                      By:______________________________________
                                      [Name of Officer]
                                      [Title of Officer]
[Corporate Seal]

ATTEST:

________
[Assistant] Secretary

     Personally  appeared before me the above-named [Name of Officer],  known or
proved to me to be the same person who executed the foregoing  instrument and to
be the [Title of Officer] of the Owner,  and acknowledged to me that he executed
the same as his free act and deed and the free act and deed of the Owner.

     Subscribed and sworn before me this ___ day of ________, 200 __.

                           NOTARY PUBLIC

                           COUNTY OF___________________________________________

                           STATE OF____________________________________________

                           My Commission expires the __ day of _____, 20__.

                                  EXHIBIT G-1-4

<PAGE>

                                    EXHIBIT 1

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 9004]
RIN 1545-AW98

Real Estate Mortgage Investment Conduits

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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

SUMMARY:  This  document  contains  final  regulations  relating  to safe harbor
transfers of noneconomic  residual interests in real estate mortgage  investment
conduits (REMICs).  The final regulations provide additional  limitations on the
circumstances under which transferors may claim safe harbor treatment.

DATES:   Effective  Date:  These   regulations  are  effective  July  19,  2002.
Applicability Date: For dates of applicability, see Sec. 1.860E-(1)(c)(10).

FOR FURTHER  INFORMATION  CONTACT:  Courtney Shepardson at (202) 622-3940 (not a
toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

     The  collection  of  information  in this final rule has been reviewed and,
pending  receipt and  evaluation of public  comments,  approved by the Office of
Management  and Budget (OMB) under 44 U.S.C.  3507 and assigned  control  number
1545-1675.

     The    collection   of    information    in    this    regulation   is   in
Sec.  1.860E-1(c)(5)(ii).  This  information  is  required  to enable the IRS to
verify that a taxpayer is complying with the conditions of this regulation.  The
collection of information is mandatory and is required.  Otherwise, the taxpayer
will not  receive  the  benefit of safe  harbor  treatment  as  provided  in the
regulation.   The  likely   respondents  are  businesses  and  other  for-profit
institutions.

                                  EXHIBIT G-1-5

<PAGE>

     Comments on the collection of  information  should be sent to the Office of
Management  and Budget,  Attn:  Desk Officer for the Department of the Treasury,
Office of Information and Regulatory Affairs, Washington, DC, 20503, with copies
to  the  Internal  Revenue  Service,   Attn:  IRS  Reports  Clearance   Officer,
W:CAR:MP:FP:S,  Washington,  DC 20224. Comments on the collection of information
should be received by September 17, 2002.  Comments are  specifically  requested
concerning:

     Whether  the   collection  of  information  is  necessary  for  the  proper
performance of the functions of the Internal Revenue Service,  including whether
the information will have practical utility;

     The accuracy of the  estimated  burden  associated  with the  collection of
information (see below);

     How the quality,  utility,  and clarity of the  information to be collected
may be enhanced;

     How the burden of  complying  with the  collection  of  information  may be
minimized,  including through the application of automated collection techniques
or other forms of information technology; and

     Estimates of capital or start-up costs and costs of operation, maintenance,
and purchase of service to provide information.

     An agency  may not  conduct or  sponsor,  and a person is not  required  to
respond to, a  collection  of  information  unless it  displays a valid  control
number assigned by the Office of Management and Budget.

     The  estimated  total  annual  reporting  burden is 470 hours,  based on an
estimated  number of respondents  of 470 and an estimated  average annual burden
hours per respondent of one hour.

     Books or records  relating to a collection of information  must be retained
as long as their  contents  may become  material  in the  administration  of any
internal  revenue law.  Generally,  tax returns and tax return  information  are
confidential, as required by 26 U.S.C. 6103.

Background

     This document contains final regulations  regarding the proposed amendments
to 26 CFR part 1 under  Section  860E of the Internal  Revenue Code (Code).  The
regulations  provide the circumstances under which a transferor of a noneconomic
REMIC  residual   interest   meeting  the   investigation   and   representation
requirements  may avail  itself  of the safe  harbor by  satisfying  either  the
formula test or the asset test.

     Final regulations governing REMICs, issued in 1992, contain rules governing
the transfer of noneconomic REMIC residual interests.  In general, a transfer of
a  noneconomic  residual  interest  is  disregarded  for all tax  purposes  if a
significant purpose of the transfer is to

[[Page 47452]]

                                  EXHIBIT G-1-6

<PAGE>

enable the  transferor to impede the  assessment or collection of tax. A purpose
to impede the assessment or collection of tax (a wrongful purpose) exists if the
transferor,  at the time of the transfer,  either knew or should have known that
the transferee would be unwilling or unable to pay taxes due on its share of the
REMIC's taxable income.

     Under  a safe  harbor,  the  transferor  of a  REMIC  noneconomic  residual
interest  is presumed  not to have a wrongful  purpose if two  requirements  are
satisfied:  (1)  the  transferor  conducts  a  reasonable  investigation  of the
transferee's  financial condition (the investigation  requirement);  and (2) the
transferor  secures a representation  from the transferee to the effect that the
transferee  understands the tax  obligations  associated with holding a residual
interest and intends to pay those taxes (the representation requirement).

     The  IRS  and  Treasury  have  been  concerned  that  some  transferors  of
noneconomic  residual  interests  claim they  satisfy  the safe  harbor  even in
situations  where the economics of the transfer  clearly indicate the transferee
is unwilling or unable to pay the tax associated with holding the interest.  For
this  reason,  on  February 7, 2000,  the IRS  published in the Federal Register
(65 FR 5807) a notice  of  proposed  rulemaking  (REG-100276-97;  REG-122450-98)
designed to clarify the safe  harbor by adding the  "formula  test," an economic
test.  The  proposed  regulation  provides  that the safe harbor is  unavailable
unless the present value of the  anticipated  tax  liabilities  associated  with
holding the residual  interest does not exceed the sum of: (1) The present value
of any  consideration  given to the transferee to acquire the interest;  (2) the
present value of the expected future distributions on the interest;  and (3) the
present  value of the  anticipated  tax  savings  associated  with  holding  the
interest as the REMIC generates losses.

     In January 2001, the IRS published Rev. Proc.  2001-12 (2001-3 I.R.B.  335)
to set forth an alternative  safe harbor that taxpayers  could use while the IRS
and the  Treasury  considered  comments on the proposed  regulations.  Under the
alternative safe harbor, if a transferor meets the investigation requirement and
the representation  requirement but the transfer fails to meet the formula test,
the transferor  may invoke the safe harbor if the  transferee  meets a two-prong
test (the asset test). A transferee generally meets the first prong of this test
if, at the time of the transfer, and in each of the two years preceding the year
of  transfer,  the  transferee's  gross  assets  exceed $100 million and its net
assets exceed $10 million. A transferee generally meets the second prong of this
test if it is a  domestic,  taxable  corporation  and agrees in  writing  not to
transfer  the  interest  to any person  other  than  another  domestic,  taxable
corporation that also satisfies the requirements of the asset test. A transferor
cannot rely on the asset test if the  transferor  knows,  or has reason to know,
that the  transferee  will not comply  with its written  agreement  to limit the
restrictions on subsequent transfers of the residual interest.

     Rev.  Proc.  2001-12  provides that the asset test fails to be satisfied in
the case of a transfer or  assignment of a  noneconomic  residual  interest to a
foreign  branch of an  otherwise  eligible  transferee.  If such a  transfer  or
assignment  were  permitted,  a corporate  taxpayer might seek to claim that the
provisions of an applicable  income tax treaty would resource  excess  inclusion
income as foreign  source  income,  and that,  as a  consequence,  any U.S.  tax
liability attributable to the excess inclusion income could be offset by foreign
tax credits.  Such a claim would impede the assessment or collection of U.S. tax
on excess inclusion income,  contrary to the

                                  EXHIBIT G-1-7

<PAGE>

congressional  purpose  of  assuring  that such  income  will be  taxable in all
events. See, e.g., sections 860E(a)(1), (b), (e) and 860G(b) of the Code.

     The Treasury and the IRS have learned that certain  taxpayers  transferring
noneconomic residual interests to foreign branches have attempted to rely on the
formula  test to obtain  safe  harbor  treatment  in an  effort  to  impede  the
assessment or collection of U.S. tax on excess  inclusion  income.  Accordingly,
the  final  regulations  provide  that if a  noneconomic  residual  interest  is
transferred  to a  foreign  permanent  establishment  or  fixed  base  of a U.S.
taxpayer,  the transfer is not eligible for safe harbor  treatment  under either
the asset  test or the  formula  test.  The  final  regulations  also  require a
transferee  to  represent  that it will not cause  income  from the  noneconomic
residual  interest to be attributable to a foreign  permanent  establishment  or
fixed base.

     Section 1.860E-1(c)(8) provides computational rules that a taxpayer may use
to  qualify  for  safe  harbor   status   under  the   formula   test.   Section
1.860E-1(c)(8)(i)  provides that the transferee is presumed to pay tax at a rate
equal to the highest rate of tax specified in Section 11(b).  Some  commentators
were  concerned that this presumed rate of taxation was too high because it does
not take into  consideration  taxpayers  subject to the alternative  minimum tax
rate. In light of the comments received,  this provision has been amended in the
final regulations to allow certain transferees that compute their taxable income
using the alternative  minimum tax rate to use the alternative  minimum tax rate
applicable to corporations.

     Additionally,  Sec. 1.860E-1(c)(8)(iii) provides that the present values in
the  formula  test  are to be  computed  using  a  discount  rate  equal  to the
applicable  Federal  short-term  rate prescribed by Section  1274(d).  This is a
change  from  the  proposed   regulation  and  Rev.  Proc.   2001-12.  In  those
publications  the  provision  stated that "present  values are computed  using a
discount rate equal to the applicable Federal rate prescribed in Section 1274(d)
compounded  semiannually"  and that "[a] lower  discount rate may be used if the
transferee can demonstrate that it regularly borrows, in the course of its trade
or  business,  substantial  funds at such  lower  rate from an  unrelated  third
party." The IRS and the Treasury  Department  have learned  that,  based on this
provision,  certain taxpayers have been attempting to use unrealistically low or
zero interest rates to satisfy the formula test,  frustrating  the intent of the
test.  Furthermore,  the  Treasury  Department  and the IRS believe  that a rule
allowing  for a rate  other than a rate based on an  objective  index  would add
unnecessary complexity to the safe harbor. As a result, the rule in the proposed
regulations  that  permits a transferee  to use a lower  discount  rate,  if the
transferee can demonstrate that it regularly  borrows  substantial funds at such
lower rate, is not included in the final regulations; and the Federal short-term
rate  has  been  substituted  for  the  applicable  Federal  rate.  To  simplify
taxpayers' computations, the final regulations allow use of any of the published
short-term  rates,  provided  that  the  present  values  are  computed  with  a
corresponding  period  of  compounding.  With the  exception  of the  provisions
relating to transfers to foreign  branches,  these  changes  generally  have the
proposed  applicability  date of February 4, 2000,  but  taxpayers may choose to
apply the interest  rate formula set forth in the proposed  regulation  and Rev.
Proc. 2001-12 for transfers occurring before August 19, 2002.

 [[Page 47453]]

Effect on Other Documents

                                  EXHIBIT G-1-8

<PAGE>

     Rev.  Proc.  2001-12  (2001-3  I.R.B.  335) is obsolete  for  transfers  of
noneconomic residual interests in REMICs occurring on or after August 19, 2002.

Special Analyses

     It is hereby  certified that these  regulations will not have a significant
economic impact on a substantial number of small entities. This certification is
based  on the  fact  that it is  unlikely  that a  substantial  number  of small
entities will hold REMIC residual interests. Therefore, a Regulatory Flexibility
Analysis  under  the  Regulatory  Flexibility  Act (5 U.S.C.  chapter  6) is not
required.  It  has  been  determined  that  this  Treasury  decision  is  not  a
significant regulatory action as defined in Executive Order 12866.  Therefore, a
regulatory assessment is not required. It also has been determined that sections
553(b) and 553(d) of the  Administrative  Procedure Act (5 U.S.C.  chapter 5) do
not apply to these regulations.

Drafting Information

     The principal author of these regulations is Courtney Shepardson.  However,
other  personnel  from the IRS and  Treasury  Department  participated  in their
development.

List of Subjects

26 CFR Part 1

     Income taxes, Reporting and record keeping requirements.

26 CFR Part 602

     Reporting and record keeping requirements.

Adoption of Amendments to the Regulations

     Accordingly, 26 CFR parts 1 and 602 are amended as follows:

PART 1--INCOME TAXES

     Paragraph 1. The authority citation for part 1 continues to read in part as
follows:

     Authority: 26 U.S.C. 7805***

                                  EXHIBIT G-1-9

<PAGE>

                                   EXHIBIT G-2

                         FORM OF TRANSFEROR CERTIFICATE

__________ , 20__

Residential Funding Mortgage Securities I, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

[Trustee]

Attention: Residential Funding Company, LLC Series _______

              Re:    Mortgage Pass-Through Certificates,
                     Series ________, Class R[-__]

Ladies and Gentlemen:

     This  letter  is  delivered  to you in  connection  with  the  transfer  by
________________  (the "Seller") to  _____________________  (the "Purchaser") of
$______________  Initial Certificate  Principal Balance of Mortgage Pass-Through
Certificates,  Series ________,  Class R[-__] (the "Certificates"),  pursuant to
Section  5.02 of the Series  Supplement,  dated as of  ________________,  to the
Standard Terms of Pooling and Servicing  Agreement dated as of  ________________
(together,  the "Pooling and Servicing  Agreement")  among  Residential  Funding
Mortgage  Securities I, Inc.,  as seller (the  "Company"),  Residential  Funding
Company,  LLC, as master servicer,  and __________,  as trustee (the "Trustee").
All terms used herein and not  otherwise  defined  shall have the  meanings  set
forth in the Pooling  and  Servicing  Agreement.  The Seller  hereby  certifies,
represents  and warrants  to, and  covenants  with,  the Company and the Trustee
that:

     1. No purpose of the Seller  relating to the transfer of the Certificate by
the Seller to the Purchaser is or will be to impede the assessment or collection
of any tax.

     2. The Seller  understands  that the Purchaser has delivered to the Trustee
and the Master Servicer a transfer  affidavit and agreement in the form attached
to the Pooling and Servicing  Agreement as Exhibit G-1. The Seller does not know
or believe that any representation contained therein is false.

                                   EXHIBIT G-2-1

<PAGE>

     3.  The  Seller  has at the time of the  transfer  conducted  a  reasonable
investigation  of the financial  condition of the Purchaser as  contemplated  by
Treasury  Regulations  Section  1.860E-1(c)(4)(i)  and,  as  a  result  of  that
investigation,  the Seller has  determined  that the Purchaser has  historically
paid its debts as they  become  due and has  found no  significant  evidence  to
indicate  that the  Purchaser  will not continue to pay its debts as they become
due in the future.  The Seller  understands  that the transfer of a Class R[-__]
Certificate  may not be respected for United States income tax purposes (and the
Seller may  continue  to be liable for United  States  income  taxes  associated
therewith) unless the Seller has conducted such an investigation.

     4. The Seller has no actual  knowledge that the proposed  Transferee is not
both a United States Person and a Permitted Transferee.

                                    Very truly yours,

                                    ____________________________________________
                                    (Seller)

                                    By:_________________________________________
                                    Name:
                                    Title:

                                   EXHIBIT G-2-2

<PAGE>

                                    EXHIBIT H

                     FORM OF INVESTOR REPRESENTATION LETTER

______________ , 20___

Residential Funding Mortgage Securities I, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, MN 55437

[Trustee]

Residential Funding Company, LLC
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, MN 55437

Attention:  Residential Funding Company, LLC Series ________

               RE:   Mortgage Pass-Through Certificates,
                     Series ________, [Class B- ]

Ladies and Gentlemen:

     _________________-    (the   "Purchaser")    intends   to   purchase   from
_________________  (the "Seller")  $_____________  Initial Certificate Principal
Balance of  Mortgage  Pass-Through  Certificates,  Series  ________,  Class (the
"Certificates"),   issued  pursuant  to  the  Series  Supplement,  dated  as  of
________________, to the Standard Terms of Pooling and Servicing Agreement dated
as of ________________  (together,  the "Pooling and Servicing Agreement") among
Residential  Funding  Mortgage  Securities I, Inc.,  as seller (the  "Company"),
Residential  Funding Company,  LLC, as master servicer (the "Master  Servicer"),
and  _____________,  as trustee (the  "Trustee").  All terms used herein and not
otherwise defined shall have the meanings set forth in the Pooling and Servicing
Agreement.  The  Purchaser  hereby  certifies,  represents  and warrants to, and
covenants with, the Company, the Trustee and the Master Servicer that:

     1. The Purchaser  understands that (a) the  Certificates  have not been and
will not be registered or qualified under the Securities Act of 1933, as amended
(the "Act") or any state  securities  law, (b) the Company is not required to so
register or qualify the Certificates, (c) the Certificates may be resold only if
registered  and  qualified  pursuant to the  provisions  of the Act or any state
securities law, or if an exemption from such  registration and  qualification is
available,  (d)  the  Pooling  and  Servicing  Agreement  contains  restrictions
regarding the transfer of the Certificates and (e) the Certificates  will bear a
legend to the foregoing effect.

                                   EXHIBIT H-1

<PAGE>

     2. The  Purchaser is  acquiring  the  Certificates  for its own account for
investment  only  and not  with a view to or for  sale in  connection  with  any
distribution  thereof in any manner that would violate the Act or any applicable
state securities laws.

     3. The Purchaser is (a) a substantial, sophisticated institutional investor
having such knowledge and experience in financial and business matters,  and, in
particular,  in such matters related to securities  similar to the Certificates,
such that it is capable of evaluating  the merits and risks of investment in the
Certificates,  (b) able to bear the economic risks of such an investment and (c)
an "accredited  investor" within the meaning of Rule 501(a) promulgated pursuant
to the Act.

     4. The Purchaser has been  furnished  with,  and has had an  opportunity to
review  (a) [a copy of the  Private  Placement  Memorandum,  dated  ___________,
20___,  relating to the  Certificates  (b)] a copy of the Pooling and  Servicing
Agreement and [b] [c] such other information  concerning the  Certificates,  the
Mortgage  Loans and the Company as has been  requested by the Purchaser from the
Company or the Seller and is  relevant to the  Purchaser's  decision to purchase
the  Certificates.  The Purchaser has had any questions arising from such review
answered by the Company or the Seller to the satisfaction of the Purchaser.  [If
the  Purchaser did not purchase the  Certificates  from the Seller in connection
with the initial  distribution of the  Certificates and was provided with a copy
of the Private Placement Memorandum (the "Memorandum")  relating to the original
sale (the "Original  Sale") of the  Certificates  by the Company,  the Purchaser
acknowledges  that such  Memorandum  was provided to it by the Seller,  that the
Memorandum  was prepared by the Company  solely for use in  connection  with the
Original  Sale and the Company did not  participate  in or facilitate in any way
the  purchase of the  Certificates  by the  Purchaser  from the Seller,  and the
Purchaser  agrees  that it will look solely to the Seller and not to the Company
with  respect  to any  damage,  liability,  claim  or  expense  arising  out of,
resulting from or in connection with (a) error or omission,  or alleged error or
omission,  contained in the Memorandum,  or (b) any information,  development or
event arising after the date of the Memorandum.]

     5. The  Purchaser  has not and will  not nor has it  authorized  or will it
authorize  any  person to (a)  offer,  pledge,  sell,  dispose  of or  otherwise
transfer any  Certificate,  any interest in any Certificate or any other similar
security to any person in any manner,  (b) solicit any offer to buy or to accept
a pledge, disposition of other transfer of any Certificate,  any interest in any
Certificate  or any other similar  security  from any person in any manner,  (c)
otherwise approach or negotiate with respect to any Certificate, any interest in
any Certificate or any other similar security with any person in any manner, (d)
make any general  solicitation  by means of general  advertising or in any other
manner or (e) take any other  action,  that (as to any of (a) through (e) above)
would  constitute a distribution  of any  Certificate  under the Act, that would
render the disposition of any Certificate a violation of Section 5 of the Act or
any state  securities law, or that would require  registration or  qualification
pursuant thereto.  The Purchaser will not sell or otherwise  transfer any of the
Certificates,  except in  compliance  with the  provisions  of the  Pooling  and
Servicing Agreement.

                                   EXHIBIT H-2

<PAGE>

     6. The Purchaser

     (a) is not an employee benefit plan or other plan subject to the prohibited
transaction  provisions 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")  (each,  a  "Plan"),  or any Person  (including,  without
limitation,  an investment  manager, a named fiduciary or a trustee of any Plan)
who is using plan  assets,  within the meaning of the U.S.  Department  of Labor
("DOL")  regulation  promulgated  at 29 C.F.R.  ss.  2510.3-101,  as modified by
Section 3(42) of ERISA,  of any Plan (each, a "Plan  Investor"),  to effect such
acquisition;

     (b) is an insurance  company,  the source of funds used to purchase or hold
the  Certificate  (or any interest  therein) is an  "insurance  company  general
account" (as defined in DOL  Prohibited  Transaction  Class  Exemption  ("PTCE")
95-60),  and the  conditions  set forth in Sections I and III of PTCE 95-60 have
been satisfied; or

     (c) has provided the Trustee,  the Company and the Master  Servicer with an
opinion of counsel  acceptable to and in form and substance  satisfactory to the
Trustee, the Company and the Master Servicer to the effect that the purchase and
holding of the  Certificates  is  permissible  under  applicable  law,  will not
constitute or result in a non-exempt prohibited transaction under Section 406 of
ERISA or Section 4975 of the Code (or  comparable  provisions of any  subsequent
enactments),  and will not  subject  the  Trustee,  the  Company  or the  Master
Servicer to any  obligation or liability  (including  obligations or liabilities
under ERISA or Section 4975 of the Code) in addition to those  undertaken in the
Pooling  and  Servicing  Agreement,  which  opinion of  counsel  shall not be an
expense of the Trustee, the Company or the Master Servicer.

     In addition,  the Purchaser hereby  certifies,  represents and warrants to,
and covenants  with, the Company,  the Trustee and the Master  Servicer that the
Purchaser  will not transfer such  Certificates  to any  transferee  unless such
transferee meets the requirements set forth in either (a), (b) or (c) above.

                                     Very truly yours,

                                     By:________________________________________
                                     Name:
                                     Title:

                                   EXHIBIT H-3

<PAGE>

                                    EXHIBIT I

                    FORM OF TRANSFEROR REPRESENTATION LETTER

_________, 20___

Residential Funding Mortgage Securities I, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, MN 55437

[Trustee]

Attention:  Residential Funding Company, LLC Series ________

              Re:   Mortgage Pass-Through Certificates,
                    Series ________, [Class B-]

Ladies and Gentlemen:

     In  connection  with the sale by  ____________________  (the  "Seller")  to
____________________ (the "Purchaser") of __________________ Initial Certificate
Principal Balance of Mortgage Pass-Through Certificates,  Series ________, Class
(the  "Certificates"),  issued  pursuant to the Series  Supplement,  dated as of
________________, to the Standard Terms of Pooling and Servicing Agreement dated
as of ________________  (together,  the "Pooling and Servicing Agreement") among
Residential  Funding  Mortgage  Securities I, Inc.,  as seller (the  "Company"),
Residential Funding Company, LLC, as master servicer, and __________, as trustee
(the "Trustee").  The Seller hereby  certifies,  represents and warrants to, and
covenants with, the Company and the Trustee that:

     Neither  the  Seller  nor  anyone  acting on its  behalf  has (a)  offered,
pledged,  sold,  disposed  of or  otherwise  transferred  any  Certificate,  any
interest in any  Certificate or any other similar  security to any person in any
manner, (b) has solicited any offer to buy or to accept a pledge, disposition or
other transfer of any Certificate,  any interest in any Certificate or any other
similar security from any person in any manner, (c) has otherwise  approached or
negotiated with respect to any  Certificate,  any interest in any Certificate or
any other  similar  security  with any  person in any  manner,  (d) has made any
general  solicitation by means of general advertising or in any other manner, or
(e) has taken any other action,  that (as to any of (a) through (e) above) would
constitute a distribution of the  Certificates  under the Securities Act of 1933
(the "Act"), that would render the disposition of any Certificate a violation of
Section  5 of the  Act or any  state  securities  law,  or  that  would  require
registration or qualification  pursuant thereto. The Seller will not act, in any
manner set forth in the foregoing sentence with respect to any Certificate.  The
Seller has not and will not sell or otherwise  transfer any of the Certificates,
except in compliance with the provisions of the Pooling and Servicing Agreement.

                                   EXHIBIT I-1

<PAGE>

                                    Very truly yours,

                                    ____________________________________________
                                    (Seller)

                                    ____________________________________________
                                    By:
                                    Name:
                                    Title:

                                   EXHIBIT I-2

<PAGE>

                                    EXHIBIT J

                  [FORM OF RULE 144A INVESTMENT REPRESENTATION]

             Description of Rule 144A Securities, including numbers:

                     __________________________________

                     __________________________________

                     __________________________________

                     __________________________________

     The undersigned  seller,  as registered  holder (the "Seller"),  intends to
transfer the Rule 144A Securities  described above to the undersigned buyer (the
"Buyer").

     1. In connection  with such transfer and in accordance  with the agreements
pursuant  to which the Rule 144A  Securities  were  issued,  the  Seller  hereby
certifies  the  following  facts:  Neither  the Seller nor anyone  acting on its
behalf has offered, transferred, pledged, sold or otherwise disposed of the Rule
144A  Securities,  any interest in the Rule 144A Securities or any other similar
security to, or solicited any offer to buy or accept a transfer, pledge or other
disposition  of  the  Rule  144A  Securities,  any  interest  in the  Rule  144A
Securities  or any other  similar  security  from,  or otherwise  approached  or
negotiated  with respect to the Rule 144A  Securities,  any interest in the Rule
144A Securities or any other similar security with, any person in any manner, or
made any general  solicitation  by means of general  advertising or in any other
manner,  or taken any other action,  that would constitute a distribution of the
Rule 144A  Securities  under the  Securities  Act of 1933, as amended (the "1933
Act"),  or that  would  render the  disposition  of the Rule 144A  Securities  a
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than  the  Buyer  or  another  "qualified   institutional   buyer" as defined in
Rule 144A under the 1933 Act.

     2. The Buyer warrants and  represents  to, and covenants  with, the Seller,
the Trustee and the Master Servicer (as defined in the Series Supplement,  dated
as of ________________, to the Standard Terms of Pooling and Servicing Agreement
dated  as  of  ________________  (the  "Agreement")  among  Residential  Funding
Company, LLC as Master Servicer, Residential Funding Mortgage Securities I, Inc.
as  depositor  pursuant to Section  5.02 of the  Agreement  and  __________,  as
trustee, as follows:

     (a) The  Buyer  understands  that the Rule  144A  Securities  have not been
registered under the 1933 Act or the securities laws of any state.

     (b) The Buyer considers itself a substantial,  sophisticated  institutional
investor having such knowledge and experience in financial and business  matters
that it is capable of evaluating  the merits and risks of investment in the Rule
144A Securities.

     (c) The Buyer has been  furnished with all  information  regarding the Rule
144A  Securities  that it has  requested  from the  Seller,  the  Trustee or the
Servicer.

                                   EXHIBIT J-1

<PAGE>

     (d)  Neither  the  Buyer  nor  anyone  acting on its  behalf  has  offered,
transferred,  pledged,  sold or otherwise  disposed of the Rule 144A Securities,
any interest in the Rule 144A  Securities or any other  similar  security to, or
solicited any offer to buy or accept a transfer,  pledge or other disposition of
the Rule 144A Securities,  any interest in the Rule 144A Securities or any other
similar security from, or otherwise approached or negotiated with respect to the
Rule 144A  Securities,  any  interest in the Rule 144A  Securities  or any other
similar  security  with,  any  person  in  any  manner,   or  made  any  general
solicitation  by means of general  advertising or in any other manner,  or taken
any  other  action,  that  would  constitute  a  distribution  of the Rule  144A
Securities  under the 1933 Act or that would render the  disposition of the Rule
144A Securities a violation of Section 5 of the 1933 Act or require registration
pursuant  thereto,  nor will it act, nor has it  authorized or will it authorize
any person to act, in such manner with respect to the Rule 144A Securities.

     (e) The Buyer is a "qualified  institutional buyer" as that term is defined
in Rule  144A  under  the  1933 Act and has  completed  either  of the  forms of
certification to that effect attached hereto as Annex 1 or Annex 2. The Buyer is
aware that the sale to it is being made in reliance  on Rule 144A.  The Buyer is
acquiring the Rule 144A  Securities for its own account or the accounts of other
qualified  institutional buyers,  understands that such Rule 144A Securities may
be resold, pledged or transferred only (i) to a person reasonably believed to be
a qualified  institutional  buyer that  purchases for its own account or for the
account  of  a  qualified  institutional  buyer  to  whom  notice  is given that
the  resale,  pledge  or  transfer  is  being made in reliance on Rule 144A,  or
(ii) pursuant to another exemption from registration under the 1933 Act.

     3. The Buyer

     (a) is not an employee benefit plan or other plan subject to the prohibited
transaction  provisions 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")  (each,  a  "Plan"),  or any Person  (including,  without
limitation,  an investment  manager, a named fiduciary or a trustee of any Plan)
who is using plan  assets,  within the meaning of the U.S.  Department  of Labor
("DOL")  regulation  promulgated  at 29 C.F.R.  ss.  2510.3-101,  as modified by
Section 3(42) of ERISA,  of any Plan (each, a "Plan  Investor"),  to effect such
acquisition; or

     (b) in the case of any Class B Certificate,  is an insurance  company,  the
source of funds  used to  purchase  or hold the  Certificates  (or any  interest
therein) is an "insurance company general account" (as defined in DOL Prohibited
Transaction  Class Exemption  ("PTCE")  95-60),  and the conditions set forth in
Sections I and III PTCE 95-60 have been satisfied; or

     (c) has provided the Trustee,  the Company and the Master  Servicer with an
opinion of counsel  acceptable to and in form and substance  satisfactory to the
Trustee, the Company and the Master Servicer to the effect that the purchase and
holding of the  Certificates  is  permissible  under  applicable  law,  will not
constitute or result in any non-exempt prohibited  transaction under Section 406
of ERISA or Section 4975 of the Code (or comparable provisions of any subsequent
enactments) and will not subject the Trustee, the Company or the Master Servicer
to any obligation or liability (including obligations or liabilities under ERISA
or Section 4975 of the Code) in addition to those  undertaken in the Pooling and
Servicing  Agreement,  which  opinion of counsel  shall not be an expense of the
Trustee, the Company or the Master Servicer.

                                   EXHIBIT J-2

<PAGE>

     4. This  document  may be executed in one or more  counterparts  and by the
different  parties  hereto on  separate  counterparts,  each of  which,  when so
executed, shall be deemed to be an original; such counterparts,  together, shall
constitute one and the same document.

     IN WITNESS  WHEREOF,  each of the parties has executed  this document as of
the date set forth below.

     ____________________________                __________________________

     Print Name of Seller                        Print Name of Buyer

     By:________________________                 By:________________________

     Name:                                       Name:

     Title:                                      Title:

     Taxpayer Identification                     Taxpayer Identification:

     No.                                         No:

     Date:                                       Date:

                                   EXHIBIT J-3

<PAGE>

                                                            ANNEX 1 TO EXHIBIT J

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
             [For Buyers Other Than Registered Investment Companies]

     The   undersigned   hereby   certifies  as  follows in connection  with the
Rule 144A Investment Representation to which this Certification is attached:

     12. As indicated below,  the undersigned is the President,  Chief Financial
Officer, Senior Vice President or other executive officer of the Buyer.

     13. In connection  with  purchases by the Buyer,  the Buyer is a "qualified
institutional  buyer" as that term is defined in Rule 144A under the  Securities
Act of 1933  ("Rule  144A")  because (i) the Buyer  owned  and/or  invested on a
discretionary basis $ in securities (except for the excluded securities referred
to below) as of the end of the  Buyer's  most recent  fiscal  year (such  amount
being  calculated in accordance with Rule 144A) and (ii) the Buyer satisfies the
criteria in the category marked below.

___ CORPORATION, ETC. The Buyer is a corporation (other than a bank, savings and
loan  association or similar  institution),  Massachusetts  or similar  business
trust, partnership, or charitable organization described in Section 501(c)(3) of
the Internal Revenue Code.

___ BANK.  The Buyer (a) is a  national  bank or banking  institution  organized
under the laws of any State, territory or the District of Columbia, the business
of which is substantially  confined to banking and is supervised by the State or
territorial  banking  commission  or similar  official  or is a foreign  bank or
equivalent institution, and (b) has an audited net worth of at least $25,000,000
as demonstrated in its latest annual  financial  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.

___  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 underwritten by insurance companies and which is subject to supervision by
the  insurance  commissioner  or a  similar  official  or  agency  of a State or
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.

                                   EXHIBIT J-4

<PAGE>

___ ERISA  PLAN.  The Buyer is an  employee  benefit  plan within the meaning of
Title I of the Employee Retirement Income Security Act of 1974.

___ INVESTMENT ADVISER.  The Buyer is an investment adviser registered under the
Investment Advisers Act of 1940.

___ SBIC. The Buyer is a Small Business  Investment Company licensed by the U.S.
Small Business  Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958.

___ BUSINESS DEVELOPMENT COMPANY. The Buyer is a business development company as
defined in Section 202(a)(22) of the Investment Advisers Act of 1940.

___ TRUST  FUND.  The Buyer is a trust  fund  whose  trustee  is a bank or trust
company  and  whose  participants  are  exclusively  (a) plans  established  and
maintained  by  a  State,   its  political   subdivisions,   or  any  agency  or
instrumentality of the State or its political  subdivisions,  for the benefit of
its  employees,  or (b) employee  benefit plans within the meaning of Title I of
the Employee  Retirement  Income  Security Act of 1974,  but is not a trust fund
that includes as participants individual retirement accounts or H.R.10 plans.

     14. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer,  (ii) securities that are part of an
unsold  allotment  to or  subscription  by the Buyer,  if the Buyer is a dealer,
(iii) bank deposit notes and certificates of deposit,  (iv) loan participations,
(v) repurchase  agreements,  (vi)  securities  owned but subject to a repurchase
agreement and (vii) currency, interest rate and commodity swaps.

     15. For purposes of determining  the aggregate  amount of securities  owned
and/or invested on a discretionary  basis by the Buyer,  the Buyer used the cost
of such  securities  to the  Buyer  and did not  include  any of the  securities
referred to in the preceding  paragraph.  Further, in determining such aggregate
amount,  the Buyer may have included  securities  owned by  subsidiaries  of the
Buyer,  but only if such  subsidiaries  are  consolidated  with the Buyer in its
financial  statements  prepared in accordance with generally accepted accounting
principles  and if the  investments of such  subsidiaries  are managed under the
Buyer's direction.  However, such securities were not included if the Buyer is a
majority-owned,  consolidated  subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.

     16.  The  Buyer  acknowledges  that  it is  familiar  with  Rule  144A  and
understands  that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements  made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

     ____           ____        Will the  Buyer  be  purchasing  the  Rule 144A
     Yes            No          Securities only for the Buyer's own account?

                                   EXHIBIT J-5

<PAGE>

     17. If the answer to the foregoing question is "no", the Buyer agrees that,
in connection  with any purchase of securities sold to the Buyer for the account
of a third party (including any separate  account) in reliance on Rule 144A, the
Buyer will only  purchase for the account of a third party that at the time is a
"qualified  institutional  buyer"  within the meaning of Rule 144A. In addition,
the Buyer agrees that the Buyer will not purchase  securities  for a third party
unless the Buyer has  obtained a current  representation  letter from such third
party or taken other  appropriate  steps  contemplated  by Rule 144A to conclude
that  such  third  party   independently  meets  the  definition  of  "qualified
institutional buyer" set forth in Rule 144A.

     18. The Buyer will notify  each of the parties to which this  certification
is made of any changes in the  information and  conclusions  herein.  Until such
notice is given,  the Buyer's purchase of Rule 144A Securities will constitute a
reaffirmation of this certification as of the date of such purchase.

                                    ____________________________________________
                                    Print Name of Buyer

                                    By:_________________________________________
                                    Name:
                                    Title:

                                    Date:_______________________________________

                                   EXHIBIT J-6

<PAGE>

                                                            ANNEX 2 TO EXHIBIT J

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers That Are Registered Investment Companies]

     The  undersigned  hereby  certifies as follows in connection  with the Rule
144A Investment Representation to which this Certification is attached:

     19. As indicated below,  the undersigned is the President,  Chief Financial
Officer or Senior Vice  President  of the Buyer or, if the Buyer is a "qualified
institutional  buyer" as that term is defined in Rule 144A under the  Securities
Act of 1933  ("Rule  144A")  because  Buyer  is part of a Family  of  Investment
Companies (as defined below), is such an officer of the Adviser.

     20.  In  connection  with  purchases  by Buyer,  the Buyer is a  "qualified
institutional  buyer" as  defined in SEC Rule 144A  because  (i) the Buyer is an
investment  company  registered  under  the  Investment Company Act of 1940, and
(ii) as marked  below,  the Buyer  alone,  or the Buyer's  Family of  Investment
Companies,  owned at least  $100,000,000 in securities  (other than the excluded
securities  referred to below) as of the end of the Buyer's  most recent  fiscal
year. For purposes of determining the amount of securities owned by the Buyer or
the Buyer's  Family of Investment  Companies,  the cost of such  securities  was
used.

     The  Buyer  owned $ in  securities  (other  than  the  excluded  securities
referred  to below) as of the end of the Buyer's  most recent  fiscal year (such
amount being calculated in accordance with Rule 144A).

     The Buyer is part of a Family of  Investment  Companies  which owned in the
aggregate  $   _____________________in   securities  (other  than  the  excluded
securities  referred to below) as of the end of the Buyer's  most recent  fiscal
year (such amount being calculated in accordance with Rule 144A).

     21. 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).

     22. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated  with the Buyer or are part of the Buyer's Family of
Investment  Companies,  (ii)  bank  deposit  notes  and certificates of deposit,
(iii) loan participations,  (iv) repurchase agreements, (v) securities owned but
subject to a repurchase agreement and (vi) currency, interest rate and commodity
swaps.

     23. The Buyer is familiar with Rule 144A and  understands  that each of the
parties to which this  certification  is made are relying  and will  continue to
rely on the  statements  made 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.

                                   EXHIBIT J-7

<PAGE>

     24.  The  undersigned  will  notify  each  of the  parties  to  which  this
certification is made of any changes in the information and conclusions  herein.
Until such notice,  the Buyer's purchase of Rule 144A Securities will constitute
a reaffirmation of this  certification by the undersigned as of the date of such
purchase.

                                      __________________________________________
                                      Print Name of Buyer

                                      __________________________________________
                                      By:
                                      Name:
                                      Title:

                                      IF AN ADVISOR:

                                      __________________________________________
                                      Print Name of Buyer
                                      Date:_____________________________________

                                   EXHIBIT J-8

<PAGE>

                                    EXHIBIT K

                   [TEXT OF AMENDMENT TO POOLING AND SERVICING
                     AGREEMENT PURSUANT TO SECTION 11.01(e)
                             FOR A LIMITED GUARANTY]

                                  ARTICLE XIII
             SUBORDINATE CERTIFICATE LOSS COVERAGE; LIMITED GUARANTY

     Section 13.01.  SUBORDINATE  CERTIFICATE  LOSS  COVERAGE; LIMITED GUARANTY.
(a) Subject to subSection  (c) below,  prior to the later of the third  Business
Day prior to each  Distribution  Date or the  related  Determination  Date,  the
Master Servicer shall determine  whether it or any Sub-Servicer will be entitled
to any  reimbursement  pursuant to Section 4.02(a) on such Distribution Date for
Advances or Sub-Servicer  Advances  previously made, (which will not be Advances
or Sub-Servicer Advances that were made with respect to delinquencies which were
subsequently determined to be Excess Special Hazard Losses, Excess Fraud Losses,
Excess  Bankruptcy  Losses or  Extraordinary  Losses)  and,  if so,  the  Master
Servicer shall demand payment from Residential Funding of an amount equal to the
amount of any Advances or Sub-Servicer  Advances  reimbursed pursuant to Section
4.02(a),  to the extent such  Advances or  Sub-Servicer  Advances  have not been
included in the amount of the Realized Loss in the related  Mortgage  Loan,  and
shall distribute the same to the Class B  Certificateholders  in the same manner
as if such amount were to be distributed pursuant to Section 4.02(a).

     (b)  Subject  to  subSection  (c)  below,  prior to the  later of the third
Business Day prior to each Distribution Date or the related  Determination Date,
the Master  Servicer  shall  determine  whether any Realized  Losses (other than
Excess Special Hazard Losses,  Excess Bankruptcy Losses, Excess Fraud Losses and
Extraordinary  Losses)  will be allocated  to the Class B  Certificates  on such
Distribution  Date  pursuant to Section  4.05,  and, if so, the Master  Servicer
shall demand  payment from  Residential  Funding of the amount of such  Realized
Loss and shall distribute the same to the Class B Certificateholders in the same
manner as if such amount  were to be  distributed  pursuant to Section  4.02(a);
provided, however, that the amount of such demand in respect of any Distribution
Date shall in no event be greater than the sum of (i) the  additional  amount of
Accrued  Certificate  Interest  that  would  have  been  paid  for  the  Class B
Certificateholders  on such  Distribution  Date had such Realized Loss or Losses
not occurred plus (ii) the amount of the reduction in the Certificate  Principal
Balances  of the  Class B  Certificates  on such  Distribution  Date due to such
Realized  Loss or Losses.  Notwithstanding  such payment,  such Realized  Losses
shall be deemed to have been borne by the  Certificateholders  for  purposes  of
Section  4.05.  Excess  Special  Hazard  Losses,  Excess  Fraud  Losses,  Excess
Bankruptcy Losses and Extraordinary Losses allocated to the Class B Certificates
will not be covered by the Subordinate Certificate Loss Obligation.

                                   EXHIBIT K-1

<PAGE>

     (c) Demands for payments  pursuant to this  Section  shall be made prior to
the  later of the third  Business  Day  prior to each  Distribution  Date or the
related Determination Date by the Master Servicer with written notice thereof to
the Trustee.  The maximum amount that  Residential  Funding shall be required to
pay pursuant to this Section on any Distribution  Date (the "Amount  Available")
shall be equal to the lesser of (X) minus the sum of (i) all  previous  payments
made under  subsections  (a) and (b) hereof and (ii) all draws under the Limited
Guaranty made in lieu of such payments as described  below in subSection (d) and
(Y)  the  then  outstanding  Certificate  Principal  Balances  of  the  Class  B
Certificates,   or  such  lower  amount  as  may  be  established   pursuant  to
Section 13.02.  Residential  Funding's  obligations as described in this Section
are referred to herein as the "Subordinate Certificate Loss Obligation."

     (d) The Trustee will promptly notify GMAC LLC of any failure of Residential
Funding to make any payments  hereunder and shall demand payment pursuant to the
limited guaranty (the "Limited Guaranty"),  executed by GMAC LLC, of Residential
Funding's  obligation  to make payments  pursuant to this Section,  in an amount
equal to the lesser of (i) the Amount Available and (ii) such required payments,
by delivering  to GMAC LLC a written  demand for payment by wire  transfer,  not
later  than the  second  Business  Day prior to the  Distribution  Date for such
month, with a copy to the Master Servicer.

     (e) All payments made by  Residential  Funding  pursuant to this Section or
amounts  paid under the  Limited  Guaranty  shall be  deposited  directly in the
Certificate Account, for distribution on the Distribution Date for such month to
the Class B Certificateholders.

     (f)  The  Company  shall  have  the  option,  in its  sole  discretion,  to
substitute  for  either  or  both of the  Limited  Guaranty  or the  Subordinate
Certificate  Loss  Obligation  another  instrument  in the  form of a  corporate
guaranty,  an irrevocable  letter of credit, a surety bond,  insurance policy or
similar  instrument  or a reserve fund;  provided  that (i) the Company  obtains
(subject to the provisions of Section 10.01(f) as if the Company was substituted
for the Master Servicer solely for the purposes of such provision) an Opinion of
Counsel (which need not be an opinion of Independent counsel) to the effect that
obtaining such  substitute  corporate  guaranty,  irrevocable  letter of credit,
surety bond,  insurance  policy or similar  instrument  or reserve fund will not
cause  either (a) any  federal  tax to be imposed on the Trust  Fund,  including
without limitation,  any federal tax imposed on "prohibited  transactions" under
Section  860(F)(a)(1) of the Code or on  "contributions  after the startup date"
under Section  860(G)(d)(1) of the Code or (b) the Trust Fund to fail to qualify
as a REMIC at any time that any  Certificate  is  outstanding,  and (ii) no such
substitution  shall  be made  unless  (A) the  substitute  Limited  Guaranty  or
Subordinate  Certificate  Loss Obligation is for an initial amount not less than
the then  current  Amount  Available  and  contains  provisions  that are in all
material  respects  equivalent to the original  Limited  Guaranty or Subordinate
Certificate   Loss   Obligation   (including   that  no  portion  of  the  fees,
reimbursements  or other  obligations under any such instrument will be borne by
the Trust  Fund),  (B) the long  term debt  obligations  of any  obligor  of any
substitute  Limited Guaranty or Subordinate  Certificate Loss Obligation (if not
supported by the Limited Guaranty) shall be rated at least the lesser of (a) the
rating of the long term debt  obligations of GMAC LLC as of the date of issuance
of the Limited  Guaranty and (b) the rating of the long term debt obligations of
GMAC LLC at the date of such  substitution  and (C) the Company  obtains written
confirmation from each nationally recognized credit rating agency that rated the
Class B Certificates at the request of the Company that such substitution  shall
not lower the  rating on the Class B

                                   EXHIBIT K-2

<PAGE>

Certificates  below the lesser of (a) the  then-current  rating  assigned to the
Class B Certificates  by such rating agency and (b) the original rating assigned
to the Class B  Certificates  by such  rating  agency.  Any  replacement  of the
Limited  Guaranty or Subordinate  Certificate  Loss Obligation  pursuant to this
Section shall be accompanied  by a written  Opinion of Counsel to the substitute
guarantor  or obligor,  addressed to the Master  Servicer and the Trustee,  that
such substitute instrument  constitutes a legal, valid and binding obligation of
the substitute  guarantor or obligor,  enforceable in accordance with its terms,
and concerning  such other matters as the Master  Servicer and the Trustee shall
reasonably  request.  Neither the Company,  the Master  Servicer nor the Trustee
shall be  obligated  to  substitute  for or  replace  the  Limited  Guaranty  or
Subordinate Certificate Loss Obligation under any circumstance.

     Section 13.02. AMENDMENTS RELATING TO THE LIMITED GUARANTY. Notwithstanding
Sections 11.01 or 13.01: (i) the provisions of this Article XIII may be amended,
superseded or deleted, (ii) the Limited Guaranty or Subordinate Certificate Loss
Obligation may be amended, reduced or canceled, and (iii) any other provision of
this Agreement  which is related or incidental to the matters  described in this
Article  XIII may be amended in any manner;  in each case by written  instrument
executed or consented to by the Company and Residential  Funding but without the
consent of any  Certificateholder and without the consent of the Master Servicer
or the  Trustee  being  required  unless  any such  amendment  would  impose any
additional  obligation on, or otherwise  adversely  affect the interests of, the
Master Servicer or the Trustee,  as applicable;  provided that the Company shall
also obtain a letter from each nationally  recognized  credit rating agency that
rated the Class B Certificates  at the request of the Company to the effect that
such amendment, reduction, deletion or cancellation will not lower the rating on
the  Class B  Certificates  below  the  lesser  of (a) the  then-current  rating
assigned to the Class B Certificates  by such rating agency and (b) the original
rating  assigned to the Class B Certificates  by such rating agency,  unless (A)
the  Holder of 100% of the Class B  Certificates  is  Residential  Funding or an
Affiliate of Residential Funding, or (B) such amendment,  reduction, deletion or
cancellation is made in accordance with Section  11.01(e) and,  provided further
that the Company  obtains  (subject to the provisions of Section  10.01(f) as if
the Company was  substituted  for the Master Servicer solely for the purposes of
such provision),  in the case of a material amendment or supersession (but not a
reduction,  cancellation or deletion of the Limited  Guaranty or the Subordinate
Certificate  Loss  Obligation),  an  Opinion of  Counsel  (which  need not be an
opinion  of  Independent  counsel)  to the  effect  that any such  amendment  or
supersession  will not cause  either  (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)(1) of the Code or on "contributions  after
the startup date" under Section  860G(d)(1) of the Code or (b) the Trust Fund to
fail to qualify as a REMIC at any time that any  Certificate is  outstanding.  A
copy of any such  instrument  shall be  provided  to the  Trustee and the Master
Servicer  together with an Opinion of Counsel that such amendment  complies with
this Section 13.02.

                                   EXHIBIT K-3

<PAGE>

                                    EXHIBIT L

                           [FORM OF LIMITED GUARANTY]
                                LIMITED GUARANTY
                 RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
                       Mortgage Pass-Through Certificates
                                 Series ________

___________, 20____

[Trustee]

Attention: Residential Funding Company, LLC Series ________

Ladies and Gentlemen:

     WHEREAS,  Residential  Funding Company,  LLC, a Delaware limited  liability
company ("Residential  Funding"),  an indirect  wholly-owned  subsidiary of GMAC
LLC, a New York  corporation  ("GMAC"),  plans to incur certain  obligations  as
described   under  Section  13.01  of  the  Series   Supplement,   dated  as  of
________________, to the Standard Terms of Pooling and Servicing Agreement dated
as of ________________ (together, the "Servicing Agreement"),  among Residential
Funding  Mortgage  Securities I, Inc. (the "Company"),  Residential  Funding and
__________ (the  "Trustee") as amended by Amendment No.  thereto,  dated as of ,
with respect to the Mortgage  Pass-Through  Certificates,  Series  ________ (the
"Certificates"); and

     WHEREAS, pursuant to Section 13.01 of the Servicing Agreement,  Residential
Funding agrees to make payments to the Holders of the Class B Certificates  with
respect to certain  losses on the Mortgage  Loans as described in the  Servicing
Agreement; and

     WHEREAS,  GMAC desires to provide  certain  assurances  with respect to the
ability of  Residential  Funding to secure  sufficient  funds and  faithfully to
perform its Subordinate Certificate Loss Obligation;

     NOW  THEREFORE,  in  consideration  of the premises  herein  contained  and
certain  other good and valuable  consideration,  the receipt of which is hereby
acknowledged, GMAC agrees as follows:

     1.  PROVISION OF FUNDS.  (a) GMAC agrees to  contribute  and deposit in the
Certificate  Account on behalf of Residential  Funding (or otherwise  provide to
Residential  Funding, or to cause to be made available to Residential  Funding),
either  directly  or  through a  subsidiary,  in any case  prior to the  related
Distribution  Date,  such moneys as may be required   by   Residential   Funding
to perform its  Subordinate  Certificate  Loss  Obligation  when and as the same
arises  from time to time upon the  demand of the  Trustee  in  accordance  with
Section 13.01 of the Servicing Agreement.

                                   EXHIBIT L-1

<PAGE>

     (b) The agreement set forth in the preceding  clause (a) shall be absolute,
irrevocable and  unconditional and shall not be affected by the transfer by GMAC
or any other person of all or any part of its or their  interest in  Residential
Funding,  by  any  insolvency,   bankruptcy,  dissolution  or  other  proceeding
affecting  Residential  Funding or any other person,  by any defense or right of
counterclaim,  set-off  or  recoupment  that GMAC may have  against  Residential
Funding   or  any  other   person  or  by  any  other   fact  or   circumstance.
Notwithstanding  the  foregoing,  GMAC's  obligations  under  clause  (a)  shall
terminate  upon  the  earlier  of (x)  substitution  for this  Limited  Guaranty
pursuant to Section 13.01(f) of the Servicing Agreement,  or (y) the termination
of the Trust Fund pursuant to the Servicing Agreement.

     2.  WAIVER.  GMAC  hereby  waives  any  failure  or  delay  on the  part of
Residential  Funding,  the Trustee or any other person in asserting or enforcing
any  rights or in making  any  claims or demands  hereunder.  Any  defective  or
partial  exercise of any such  rights  shall not  preclude  any other or further
exercise  of  that  or  any  other  such  right.  GMAC  further  waives  demand,
presentment,  notice of default,  protest,  notice of  acceptance  and any other
notices with respect to this Limited Guaranty,  including,  without  limitation,
those of action or nonaction on the part of Residential Funding or the Trustee.

     3.  MODIFICATION,  AMENDMENT AND TERMINATION.  This Limited Guaranty may be
modified,  amended or terminated  only by the written  agreement of GMAC and the
Trustee and only if such  modification,  amendment or  termination  is permitted
under Section 13.02 of the Servicing  Agreement.  The  obligations of GMAC under
this  Limited  Guaranty  shall  continue  and  remain  in  effect so long as the
Servicing  Agreement is not modified or amended in any way that might affect the
obligations  of GMAC under  this  Limited  Guaranty  without  the prior  written
consent of GMAC.

     4. SUCCESSOR.  Except as otherwise expressly provided herein, the guarantee
herein set forth shall be binding upon GMAC and its respective successors.

     5.  GOVERNING  LAW. This Limited  Guaranty shall be governed by the laws of
the State of New York.

     6. AUTHORIZATION AND RELIANCE. GMAC understands that a copy of this Limited
Guaranty  shall be delivered to the Trustee in connection  with the execution of
Amendment  No. 1 to the  Servicing  Agreement  and GMAC  hereby  authorizes  the
Company  and the  Trustee  to rely on the  covenants  and  agreements  set forth
herein.

     7.  DEFINITIONS.  Capitalized  terms used but not otherwise  defined herein
shall have the meaning given them in the Servicing Agreement.

     8.  COUNTERPARTS.  This  Limited  Guaranty may be executed in any number of
counterparts,  each  of  which  shall  be  deemed  to be an  original  and  such
counterparts shall constitute but one and the same instrument.

                                   EXHIBIT L-2

<PAGE>

     IN WITNESS  WHEREOF,  GMAC has caused this Limited  Guaranty to be executed
and delivered by its respective officers thereunto duly authorized as of the day
and year first above written.

                                    GMAC LLC

                                    By:________________________________________
                                    Name:
                                    Title:
Acknowledged by:
[Trustee], as Trustee

By:_____________________________
Name:
Title:

RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

By:_____________________________
Name:
Title:

                                   EXHIBIT L-3

<PAGE>

                                    EXHIBIT M

          FORM OF LENDER CERTIFICATION FOR ASSIGNMENT OF MORTGAGE LOAN

_____________, 20______

Residential Funding Mortgage Securities I, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

[Trustee]

Attention: Residential Funding Company, LLC Series ________

               Re:   Mortgage Pass-Through Certificates, Series ________
                     Assignment of Mortgage Loan

Ladies and Gentlemen:

     This  letter is  delivered  to you in  connection  with the  assignment  by
___________   (the  "Trustee")  to   _____________________   (the  "Lender")  of
__________________(the  "Mortgage  Loan")  pursuant  to  Section  3.13(d) of the
Series  Supplement,  dated  as of  ________________,  to the  Standard  Terms of
Pooling and Servicing  Agreement  dated as of  ________________  (together,  the
"Pooling and Servicing Agreement") among Residential Funding Mortgage Securities
I, Inc., as seller (the "Company"),  Residential Funding Company, LLC, as master
servicer, and the Trustee. All terms used herein and not otherwise defined shall
have the meanings set forth in the Pooling and Servicing  Agreement.  The Lender
hereby  certifies,  represents  and warrants to, and covenants  with, the Master
Servicer and the Trustee that:

     (a) the  Mortgage  Loan is  secured  by  Mortgaged  Property  located  in a
jurisdiction  in which an  assignment  in lieu of  satisfaction  is  required to
preserve lien priority,  minimize or avoid mortgage recording taxes or otherwise
comply with, or facilitate a refinancing under, the laws of such jurisdiction;

     (b)  the  substance  of the  assignment  is,  and  is  intended  to  be,  a
refinancing  of such Mortgage Loan and the form of the  transaction is solely to
comply with, or facilitate the transaction under, such local laws;

     (c) the Mortgage Loan following the proposed assignment will be modified to
have a rate of  interest  at least  0.25  percent  below  or  above  the rate of
interest  on such  Mortgage  Loan prior to such  proposed  assignment;  and such
assignment is at the request of the borrower under the related Mortgage Loan.

                                   EXHIBIT M-1

<PAGE>

                                    Very truly yours,
                                    (Lender)

                                    By:________________________________________
                                    Name:
                                    Title:

                                   EXHIBIT M-2

<PAGE>

                                    EXHIBIT N

                          FORM OF REQUEST FOR EXCHANGE

[Date]

U.S. Bank National Association
U.S. Bank Corporate Trust Services
60 Livingston Avenue
EP-MN-WS3D
St. Paul, MN  55107-2292

               Re:   Residential Funding Mortgage Securities I, Inc.
                     Mortgage Pass-Through Certificates, Series [________]

     Residential  Funding  Company,  LLC,  as the  Holder of a ____%  Percentage
Interest of the [Class/Subclass] of Class A-V Certificates,  hereby requests the
Trustee  to  exchange  the  above-referenced  Certificates  for  the  Subclasses
referred to below:

     1.   Class   A-V    Certificates,    corresponding    to   the    following
          Uncertificated REMIC Regular Interests: [List numbers corresponding to
          the  related  loans  and  Pool  Strip  Rates  from the  Mortgage  Loan
          Schedule].  The  Initial  Subclass  Notional  Amount  and the  initial
          Pass-Through  Rate on the Class A-V Certificates  will be $___________
          and _____%, respectively.

     [2.  Repeat as appropriate.]

     The Subclasses  requested  above will represent in the aggregate all of the
Uncertificated REMIC Regular Interests represented by the Class A-V Certificates
surrendered for exchange.

     The  capitalized  terms used but not defined herein shall have the meanings
set forth in the Pooling and  Servicing  Agreement,  dated as of _______,  among
Residential  Funding Mortgage  Securities I, Inc.,  Residential Funding Company,
LLC and U.S. Bank National Association, as trustee.

                                   RESIDENTIAL FUNDING
                                   CORPORATION

                                   By:_________________________________________
                                   Name:
                                   Title:

                                   EXHIBIT N-1

<PAGE>

                                    EXHIBIT O

                         FORM OF FORM 10-K CERTIFICATION

     I, [identify the certifying individual], certify that:

     1. I have  reviewed  this  report on Form 10-K and all reports on Form 10-D
required   to  be  filed  in  respect of the  period  covered by this  report on
Form 10-K of the trust (the Exchange Act periodic  reports)  created pursuant to
the Pooling and Servicing  Agreement dated  __________ (the  "Agreement")  among
Residential  Funding Mortgage  Securities I, Inc.,  Residential Funding Company,
LLC (the "Master Servicer") and [Name of Trustee] (the "Trustee");

     2. Based on my knowledge,  Exchange Act periodic reports, taken as a whole,
do 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 with respect
to the period covered by this report;

     3. Based on my  knowledge,  all of the  distribution,  servicing  and other
information  required to be provided  under Form 10-D for the period  covered by
this report is included in the Exchange Act periodic reports;

     4. I am responsible  for reviewing the  activities  performed by the Master
Servicer  and based on my  knowledge  and the  compliance  review  conducted  in
preparing the servicer  compliance  statement required in this report under Item
1123 of  Regulation  AB and except as  disclosed  in the  Exchange  Act periodic
reports,  the Master Servicer has fulfilled its obligations under the Agreement;
and

     5. All of the reports on assessment of compliance  with servicing  criteria
for asset-backed  securities and their related attestation reports on assessment
of compliance with servicing criteria for asset-backed securities required to be
included  in this  report in  accordance  with Item  1122 of  Regulation  AB and
Exchange  Act Rules  13a-18 and 15d-18 have been  included as an exhibit to this
report,  except as otherwise disclosed in this report. Any material instances of
noncompliance  described in such  reports have been  disclosed in this report on
Form 10-K.

     In  giving  the  certifications  above,  I have  reasonably  relied  on the
information provided to me by the following unaffiliated parties: [the Trustee].

Date:____________

_________________________________*
[Signature]
Name:
Title:
* - to be signed by the senior  officer in charge of the servicing  functions of
the Master Servicer

                                   EXHIBIT O-1

<PAGE>

                                    EXHIBIT P

             FORM OF BACK-UP CERTIFICATION TO FORM 10-K CERTIFICATE

     The undersigned,  a Responsible  Officer of U.S. Bank National  Association
(the "Trustee") certifies that:

     1. The Trustee has performed all of the duties specifically  required to be
performed  by it  pursuant  to the  provisions  of  the  Pooling  and  Servicing
Agreement dated ____________ (the "Agreement") by and among Residential  Funding
Mortgage Securities I, Inc. (the "Company"),  Residential  Funding Company,  LLC
(the "Master  Servicer") and Trustee in accordance  with the standards set forth
therein.

     2. Based on my knowledge,  the list of  Certificateholders  as shown on the
Certificate Register as of the end of each calendar year that is provided by the
Trustee  pursuant to Section  4.03(f)(I)  of the Agreement is accurate as of the
last day of the 20___ calendar year.

     Capitalized terms used and not defined herein shall have the meanings given
such terms in the Agreement.

     IN  WITNESS   THEREOF,   I  have  duly  executed  this  certificate  as  of
____________, 20___.

                                    Name:______________________________________

                                    Title:_____________________________________

                                   EXHIBIT P-1

<PAGE>

                                    EXHIBIT Q

    INFORMATION TO BE PROVIDED BY THE MASTER SERVICER TO THE RATING AGENCIES
                 RELATING TO REPORTABLE MODIFIED MORTGAGE LOANS

Account number
Transaction Identifier
Unpaid Principal Balance prior to Modification
Next Due Date
Monthly Principal and Interest Payment
Total Servicing  Advances
Current Interest Rate
Original Maturity Date
Original Term to Maturity (Months)
Remaining Term to Maturity (Months)
Trial Modification Indicator
Mortgagor Equity Contribution
Total Servicer Advances
Trial Modification Terms (Months)
Trial Modification Start Date
Trial Modification End Date
Trial Modification Period Principal and Interest Payment
Trial Modification Interest Rate
Trial Modification Term
Rate Reduction Indicator
Interest Rate Post Modification
Rate Reduction Start Date
Rate Reduction End Date
Rate Reduction Term
Term Modified Indicator
Modified Amortization Period
Modified Final Maturity Date
Total Advances Written Off
Unpaid Principal Balance Written Off
Other Past Due Amounts Written Off
Write Off Date
Unpaid Principal Balance Post Write Off
Capitalization Indicator
Mortgagor Contribution
Total Capitalized Amount
Modification Close Date
Unpaid Principal Balance Post Capitalization Modification
Next Payment Due Date per Modification Plan
Principal and Interest Payment Post Modification
Interest Rate Post Modification
Payment Made Post Capitalization
Delinquency Status to Modification Plan

                                   EXHIBIT Q-1

<PAGE>

                                    EXHIBIT R

                               SERVICING CRITERIA

         The  assessment  of  compliance  to be delivered  by the Trustee  shall
address, at a minimum,  the criteria  identified below as "Applicable  Servicing
Criteria"

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                                                                           APPLICABLE SERVICING
                                   SERVICING CRITERIA                                            CRITERIA
-----------------------------------------------------------------------------------------------------------------
     REFERENCE                                     CRITERIA
-----------------------------------------------------------------------------------------------------------------
                        GENERAL SERVICING CONSIDERATIONS
-----------------------------------------------------------------------------------------------------------------
<S>                 <C>                                                                   <C>
                     Policies and procedures are instituted to monitor  any
                     performance or other triggers  and  events of  default in
1122(d)(1)(i)        accordance with the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
                     If any material servicing activities are  outsourced  to
                     third  parties,  policies and procedures are instituted to
                     monitor the third party's  performance  and compliance with
1122(d)(1)(ii)       such servicing activities.
-----------------------------------------------------------------------------------------------------------------
                     Any requirements in the transaction agreements to maintain
1122(d)(1)(iii)      a back-up servicer for the pool assets are maintained.
-----------------------------------------------------------------------------------------------------------------
                     A fidelity bond and errors and omissions  policy is in
                     effect on the party participating in the servicing function
                     throughout the reporting period in the amount of coverage
                     required by and otherwise in accordance  with the terms of
1122(d)(1)(iv)       the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
                                       CASH COLLECTION AND ADMINISTRATION
-----------------------------------------------------------------------------------------------------------------
                     Payments on pool assets are deposited into the  appropriate
                     custodial bank accounts and related bank clearing accounts        [X] (as to accounts
                     no more than two business days following receipt, or such          held by Trustee)
                     other number of days  specified  in the transaction
1122(d)(2)(i)        agreements.
-----------------------------------------------------------------------------------------------------------------
                     Disbursements made via  wire transfer on behalf of an
                     obligor or to an investor are made only by authorized             [X] (as to investors
1122(d)(2)(ii)       personnel.                                                               only)
-----------------------------------------------------------------------------------------------------------------
                     Advances of funds or guarantees regarding collections,
                     cash flows or distributions, and any interest or other
                     fees charged for such advances, are made, reviewed and
1122(d)(2)(iii)      approved as specified in the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
                     The related accounts for the transaction, such as cash
                     reserve accounts or accounts established as a form of
                     overcollateralization, are separately maintained (e.g., with      [X] (as to accounts
                     respect to commingling of cash) as set forth in the transaction     held by Trustee)
1122(d)(2)(iv)       agreements.
-----------------------------------------------------------------------------------------------------------------
                     Each custodial account is maintained at a federally
                     insured depository institution as set forth in the
                     transaction agreements. For purposes of this criterion,
                     "federally insured depository institution" with respect to
                     a foreign financial institution means a foreign financial
                     institution that meets the requirements of Rule 13k-1(b)(1)
1122(d)(2)(v)        of the Securities Exchange Act.
-----------------------------------------------------------------------------------------------------------------
                     Unissued checks are safeguarded so as to prevent
1122(d)(2)(vi)       unauthorized access.
-----------------------------------------------------------------------------------------------------------------
                     Reconciliations are prepared on a monthly basis for all
                     asset-backed securities related bank accounts, including
                     custodial accounts and related bank clearing accounts.
                     These reconciliations are (A) mathematically accurate; (B)
                     prepared within 30 calendar days after the bank statement
                     cutoff date, or such other number of days specified in the
                     transaction agreements; (C) reviewed and approved by
                     someone other than the person who prepared the
                     reconciliation; and (D) contain explanations for
                     reconciling items. These reconciling items are resolved
                     within 90 calendar days of their original identification,
                     or such other number of days specified in the transaction
1122(d)(2)(vii)      agreements.
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                  EXHIBIT R-1

<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                                                                           APPLICABLE SERVICING
                                   SERVICING CRITERIA                                            CRITERIA
-----------------------------------------------------------------------------------------------------------------
     REFERENCE                                     CRITERIA
-----------------------------------------------------------------------------------------------------------------
                                    INVESTOR REMITTANCES AND REPORTING
-----------------------------------------------------------------------------------------------------------------
<S>                 <C>                                                                        <C>
                     Reports to investors, including those to be filed with the
                     Commission, are maintained in accordance with the
                     transaction agreements and applicable Commission
                     requirements. Specifically, such reports (A) are prepared
                     in accordance with timeframes and other terms set forth in
                     the transaction agreements; (B) provide information
                     calculated in accordance with the terms specified in the
                     transaction agreements; (C) are filed with the Commission
                     as required by its rules and regulations; and (D) agree
                     with investors' or the trustee's records as to the total
                     unpaid principal balance and number of pool assets
1122(d)(3)(i)        serviced by the servicer.
-----------------------------------------------------------------------------------------------------------------
                     Amounts due to investors are allocated and remitted in accordance              [X]
                     with timeframes, distribution priority and other terms set forth in
1122(d)(3)(ii)       the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
                     Disbursements made to an investor are posted within two business
                     days to the servicer's investor records, or such other number of               [X]
1122(d)(3)(iii)      days specified in the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
                     Amounts remitted to investors per the investor reports                         [X]
                     agree with cancelled checks, or other form of payment, or
1122(d)(3)(iv)       custodial bank statements.
-----------------------------------------------------------------------------------------------------------------
                                          POOL ASSET ADMINISTRATION
-----------------------------------------------------------------------------------------------------------------
                     Collateral or security pool asset is maintained as
                     required by the transaction agreements or related asset
1122(d)(4)(i)        pool documents.
-----------------------------------------------------------------------------------------------------------------
                     Pool assets and related documents are safeguarded as required by
1122(d)(4)(ii)       the transaction agreements
-----------------------------------------------------------------------------------------------------------------
                     Any additions, removals or substitutions to the asset pool
                     are made, reviewed and approved in accordance with any
1122(d)(4)(iii)      conditions or requirements in the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
                     Payments on pool assets, including any payoffs, made in
                     accordance with the related pool asset documents are
                     posted to the servicer's obligor records maintained no
                     more than two business days after receipt, or such other
                     number of days specified in the transaction agreements,
                     and allocated to principal, interest or other items (e.g.,
                     escrow) in accordance with the related pool asset
1122(d)(4)(iv)       documents.
-----------------------------------------------------------------------------------------------------------------
                     The servicer's records regarding the pool assets agree with
                     the servicer's  records with respect to an obligor's unpaid
1122(d)(4)(v)        principal balance.
-----------------------------------------------------------------------------------------------------------------
                     Changes with respect to the terms or status of an obligor's
                     pool asset (e.g., loan modifications or re-agings) are
                     made, reviewed and approved by authorized personnel in
                     accordance with the transaction agreements and related pool
1122(d)(4)(vi)       asset documents.
-----------------------------------------------------------------------------------------------------------------
                     Loss mitigation or recovery actions (e.g., forbearance
                     plans, modifications and deeds in lieu of foreclosure,
                     foreclosures and repossessions, as applicable) are
                     initiated, conducted and concluded in accordance with the
                     timeframes or other requirements established by the
1122(d)(4)(vii)      transaction agreements.
-----------------------------------------------------------------------------------------------------------------
                     Records documenting collection efforts are maintained
                     during the period a pool asset is delinquent in accordance
                     with the transaction agreements. Such records are
                     maintained on at least a monthly basis, or such other
                     period specified in the transaction agreements, and
                     describe the entity's activities in monitoring delinquent
                     pool assets including, for example, phone calls, letters
                     and payment rescheduling plans in cases where delinquency
1122(d)(4)(viii)     is deemed temporary (e.g., illness or unemployment).
-----------------------------------------------------------------------------------------------------------------
                     Adjustments to interest rates or rates of return for pool
                     assets with variable rates are computed based on the
1122(d)(4)(ix)       related pool asset documents.
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                  EXHIBIT R-2

<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                                                                           APPLICABLE SERVICING
                                   SERVICING CRITERIA                                            CRITERIA
-----------------------------------------------------------------------------------------------------------------
     REFERENCE                                     CRITERIA
-----------------------------------------------------------------------------------------------------------------
<S>                 <C>                                                                        <C>
                     Regarding any funds held in trust for an obligor (such as
                     escrow accounts): (A) such funds are analyzed, in
                     accordance with the obligor's pool asset documents, on at
                     least an annual basis, or such other period specified in
                     the transaction agreements; (B) interest on such funds is
                     paid, or credited, to obligors in accordance with
                     applicable pool asset documents and state laws; and (C)
                     such funds are returned to the obligor within 30 calendar
                     days of full repayment of the related pool asset, or such
                     other number of days specified in the transaction
1122(d)(4)(x)        agreements.
-----------------------------------------------------------------------------------------------------------------
                     Payments made on behalf of an obligor (such as tax or
                     insurance payments) are made on or before the related
                     penalty or expiration dates, as indicated on the
                     appropriate bills or notices for such payments, provided
                     that such support has been received by the servicer at
                     least 30 calendar days prior to these dates, or such other
1122(d)(4)(xi)       number of days specified in the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
                     Any late payment penalties in connection with any payment
                     to be made on behalf of an obligor are paid from the
                     servicer's funds and not charged to the obligor, unless
                     the late payment was due to the obligor's error or
1122(d)(4)(xii)      omission.
-----------------------------------------------------------------------------------------------------------------
                     Disbursements made on behalf of an obligor are posted
                     within two business days to the obligor's records
                     maintained by the  servicer, or such other number of days
1122(d)(4)(xiii)     specified in the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
                     Delinquencies, charge-offs and uncollectible accounts are
                     recognized and recorded in accordance with the transaction
1122(d)(4)(xiv)      agreements.
-----------------------------------------------------------------------------------------------------------------
                     Any external enhancement or other support, identified in
                     Item 1114(a)(1) through (3) or Item 1115 of Regulation AB,               [X]
1122(d)(4)(xv)       is maintained as set forth in the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                  EXHIBIT R-3

<PAGE>

                                    EXHIBIT S

                             FORM OF EXCHANGE NOTICE
                             -----------------------

                        [CERTIFICATEHOLDER'S LETTERHEAD]

                                                                          [DATE]

U.S. Bank National Association
U.S. Bank Corporate Trust Services
60 Livingston Avenue
EP MN WS3D
St. Paul, MN  55107-2292

                  Re:

Ladies and Gentlemen:

     Pursuant to the terms of the Pooling and Servicing  Agreement (the "Pooling
and Servicing Agreement"),  dated as of [], between Residential Funding Company,
LLC, as master servicer,  Residential  Funding  Mortgage  Securities I, Inc., as
depositor,  and U.S. Bank National Association,  as trustee (the "Trustee"),  we
hereby present and surrender the Exchangeable [Exchanged] Certificates specified
on Annex I attached hereto (the  "Exchangeable  [Exchanged]  Certificates")  and
transfer,  assign,  set over and  otherwise  convey to the  Trustee,  all of our
right, title and interest in and to the Exchangeable  [Exchanged]  Certificates,
including all payments of interest  thereon  received  after [], in exchange for
the  Exchanged  [Exchangeable]  Certificates  specified  on  Schedule I attached
hereto (the "Exchanged [Exchangeable] Certificates").

We agree that upon such  exchange the portions of the  Exchangeable  [Exchanged]
Certificates  designated for exchange shall be deemed  cancelled and replaced by
the  Exchanged  [Exchangeable]  Certificates  issued in  exchange  therefor.  We
confirm that we have paid a fee to the Trustee in connection  with such exchange
equal to $10,000.

                                          Very truly yours,
                                          [NAME OF TRANSFEREE]

                                          By:________________________________
                                          Authorized Officer

                                          [MEDALLION STAMP GUARANTEE]

                                  EXHIBIT S-1

<PAGE>

Acknowledged by:

U.S. BANK NATIONAL ASSOCIATION,
as Trustee

By: _________________________________
Name:
Title:

By: _________________________________
Name:
Title:

                                  EXHIBIT S-2

<PAGE>

                              ANNEX I TO EXHIBIT S

                        INITIAL EXCHANGEABLE CERTIFICATES

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
    EXCHANGEABLE [EXCHANGED] CERTIFICATES         EXCHANGED [EXCHANGEABLE] CERTIFICATES
------------------------------------------------------------------------------------------------------------------------------
                    OUTSTANDING                                  INITIAL
                    CERTIFICATE                                CERTIFICATE
                     PRINCIPAL                                  PRINCIPAL
                     BALANCE OR                                 BALANCE OR                  CERTIFICATEHOLDER'S     PROPOSED
                      NOTIONAL                                   NOTIONAL                     DTC PARTICIPANT       EXCHANGE
  CERTIFICATE(S)       AMOUNT     CUSIP NUMBER  CERTIFICATE(S)    AMOUNT     CUSIP NUMBER         NUMBER              DATE
------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>          <C>             <C>            <C>          <C>             <C>                    <C>

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

------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                  EXHIBIT S-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]