Document:

Q3 2001 Exhibit 10.8

GMAC Mortgage

 

 

August 6, 2001

Joseph Kennedy

President

E-Loan, Inc.

5875 Arnold Road

Dublin, CA 94568
RE:Warehouse Credit Agreement, as amended (the "Warehouse Credit
Agreement"), among Cooper River Funding Inc., as Lender ("CRF"), GE Capital
Mortgage Services, Inc., as Agent ("GECMSI") and E-Loan, Inc., as Borrower (the
".Borrower"), together with the other transaction documents related thereto or
executed by the Borrower in connection therewith, each as amended (the "Related
Documents"), including, without limitation, any and all corresponding Promissory
Notes, Warehouse Security Agreements, Guaranty and Surety Agreements, Support
Agreements, UCC-1 Financing Statements (or similar filings), Escrow Agreements
and Intercreditor Agreements. 

Ladies and Gentlemen:

Pursuant to an Asset Purchase Agreement (the "Purchase Agreement") to be
entered into among GMAC Mortgage Corporation, a Pennsylvania corporation, as
purchaser (the "Purchaser") and GECMSI and CRF, as sellers (collectively, the
"Sellers"), the Sellers plan to assign, and the Purchaser plans to assume,
certain warehouse loans of the Sellers, including the Warehouse Credit Agreement
and the Related Documents, on or around August 20, 2001 (the date upon which
such transfer is actually made, the "Closing Date").

The Borrower (the "Consentor") hereby agree as follows:

	Acknowledgment of and Consent to Assignment and Assumption. The
Consentor hereby acknowledges and consents to the transfer, grant, conveyance
and assignment by the Sellers to the Purchaser of all of the Sellers" right,
title and interest in, to and under the Warehouse Credit Agreement and the
Related Documents. The Consentor further acknowledges the assumption by the
Purchaser of all of the duties, obligations, undertakings and liabilities of the
Sellers to be performed under or with respect to the Warehouse Credit Agreement
and Related Documents, except as modified by the terms of this letter, on and
after-the Closing Date.

 

 

	Release of the Purchaser with Respect to Liabilities Prior to Closing
Date. The Consentor hereby releases the Purchaser and its directors,
officers, shareholders, agents and affiliates from any and all claims, demands,
actions, causes of action, debts, suits, contracts, controversies, agreements,
promises, damages, responsibilities, liabilities, and accounts of whatever kind,
nature, or description, direct or indirect, known or unknown, in law or in
equity, in contract or otherwise, which arise in connection with the Warehouse
Credit Agreement and the Related Documents based upon events that occurred prior
to the Closing Date.

	Release of Seller with Respect to Liabilities After the Closing Date.
The Consentor hereby releases the Sellers and their directors, officers,
shareholders, agents and affiliates from any and all claims, demands, actions,
causes of action, debts, suits, contracts, controversies, agreements, promises,
damages, responsibilities, liabilities, and accounts of whatever kind, nature,
or description, direct or indirect, known or unknown, in law or in equity, in
contract or otherwise, which arise in connection with claims arising out of or
in any way related to the Warehouse Credit Agreement and the Related Documents
based upon events occurring on or after the Closing Date.

	Amendments to Warehouse Credit Agreement and Related Documents. The
Consentor hereby agrees that on and after the Closing Date, the following
provisions contained in the Warehouse Credit Agreement and the Related Documents
shall be amended as follows:

	The rate of interest thereunder shall no longer be based upon Commercial
Paper issuances or the Commercial Paper Rate. Instead, the rate of interest
shall be based upon the Monthly Average LIBOR Rate (defined below).
Specifically, in Section 2.07 of the Warehouse Credit Agreement (or such other
section under Article II which is titled "Interest"), the term "Monthly Average
LIBOR Rate" shall be substituted for the term Commercial Paper Rate. "Monthly
Average LIBOR Rate" shall mean the average of all thirty (30) day LIBOR rates
quoted in any given month. "LIBOR Rate" means a rate of interest equal to the
London Interbank Offered Rate for US dollar deposits as quoted by Telerate,
Bloomberg or any other rate quoting service selected by Lender in its sole
discretion for an interest period of thirty (30) days.
	If the current expiry date of the Warehouse Credit Agreement and the Related
Documents occurs on or before November 1, 2001, the expiry date shall be
November 1, 2001.

	Terms of Warehouse Credit Agreement and the Related Documents to
Govern. Notwithstanding any prior course of dealing between the Consentor
and the Sellers, the Consentor hereby acknowledges that the terms of the
Warehouse Credit Agreement and the Related Documents, as amended by the terms of
this letter, shall solely govern the relationship between the Purchaser and the
Consentor. Subject to the provisions contained herein, Consentor hereby ratifies
and affirms the terms of the Warehouse Credit Agreement and the Related
Documents, including, without limitation, the representations, warranties and
covenants contained therein.

	Security Interests. The Consentor acknowledges that the Sellers shall
transfer and assign to the Purchaser their security interests in all property of
the Consentor held by the Sellers constituting collateral for the Consentor's
obligations under the Warehouse Credit Agreement and the Related Documents.

	Waiver. By its acknowledgment at the bottom of this letter, the
Consentor hereby waives any and all requirements contained in the Warehouse
Credit Agreement and the Related Documents, including, without limitation, any
notice requirement or consent rights (of Consentor or any third party) with
respect to the transfer of the Warehouse Credit Agreement and the Related
Documents contemplated by this letter.

	Further Assurances. At any time and from time to time, the Consentor
agrees, without further consideration, to take such actions and to execute and
deliver such documents as may be reasonably necessary to effectuate the purposes
hereof. Consentor hereby represents and warrants that it has obtained all
necessary consents and approvals required in connection with the execution,
delivery and performance of this Letter Agreement.

	Successors and Assigns. The Consentor's agreements hereunder shall be
binding upon the Consentor's successors and assigns and shall inure to the
benefit of the Consentor and the purchaser and their respective successors and
assigns. Consentor acknowledges that Purchaser tray assign this Agreement or the
Warehouse Credit Agreement and the Related Documents to its affiliates upon ten
(10) days notice to Consentor. Consentor may not assign this Agreement, the
Warehouse Credit Agreement or the Related Documents without the written consent
of Purchaser.

	Contingent Effectiveness. Consentor acknowledges and agrees that the
provisions of this Letter Agreement shall be void and of no force or effect
unless and until the Warehouse Credit Agreement and the Related Documents have
been assigned to Purchaser. Purchaser shall notify Borrower that the
transactions have been consummated by telephone or in writing.

 

Please confirm your acceptance of these terms , by executing the
acknowledgment set forth below.

	
 
	
Sincerely,

	
 
	
GMAC MORTGAGE CORPORATION

	
 
	
/s/ John Doulong

John Doulong

VP and General Manager

Warehouse Lending

	
 
	
/s/ Martin Schroeter

Martin Schroeter

Senior Vice President

Business Lending

AGREED AN ACKNOWLEDGED

As of this 10th day of August , 2001

E-Loan, Inc.

/s/ Steven M. Majerus

Name: Steven M. Majerus

Title: V.P. - Secondary MarketingQ3 2001 Exhibit 10.9

 

 

 

 

 

$50,000,000

 

 

WAREHOUSE CREDIT AGREEMENT

 

between

 

E-LOAN, INC., as Borrower,

 

and

 

GMAC BANK, as Lender

 

 

__________________________________

 

Dated as of November 1, 2001

 

__________________________________

TABLE OF CONTENTS

Page

Section 1.Definitions and Principles of
Construction.*
1.01Defined Terms.*

1.02Principles of Construction.*

Section 2.Amount and Terms of Credit.*
2.01Commitment.*

2.02Minimum Borrowing Amount.*

2.03Pledge of Collateral.*

2.04Request for Advance.*

2.05Disbursement of Funds.*

2.06Note.*

2.07Interest.*

Section 3.Fees.*
3.01Fees.*

Section 4.Prepayments; Payments.*
4.01Voluntary Prepayments.*

4.02Mandatory Prepayments.*

4.03Release of Collateral; Substitution.*

4.04Sale of Collateral to Investors.*

4.05Method and Place of Payment.*

4.06Net Payments.*

Section 5.Conditions Precedent.*
5.01Execution of Agreement; Note.*

5.02No Default; Representations and Warranties.*

5.03Request for Advance.*

5.04Opinion of Counsel.*

5.05Diligence.*

5.06Corporate Documents; Proceedings.*

5.07Financial Statements.*

5.08Mandatory Prepayment.*

5.09Warehouse Security Agreement.*

5.10No Adverse Change.*

5.11Insurance.*

5.12[Intentionally omitted]*

5.13Delivery of the Collateral.*

5.14Fees.*

5.15No Litigation.*

5.16Legal or Regulatory Proceedings.*

5.17[Intentionally omitted].*

5.18[Intentionally omitted]..*

5.19[Intentionally omitted]..*

5.20[Intentionally omitted]..*

Section 6.Representations, Warranties and
Agreements.*
6.01Corporate Status.*

6.02Corporate Power and Authority.*

6.03No Violation.*

6.04Governmental Approvals.*

6.05Financial Statements; Financial Condition;
Undisclosed Liabilities; etc.*

6.06Litigation.*

6.07True and Complete Disclosure.*

6.08Use of Proceeds; Margin Regulations.*

6.09Tax Returns and Payments.*

6.10Compliance with ERISA.*

6.11Capitalization.*

6.12Subsidiaries.*

6.13Compliance with Statutes, etc.*

6.14Investment Company Act.*

6.15No Burdensome Agreement.*

6.16Security Interests.*

6.17Registration.*

6.18Representations Relating to the Mortgage Loans.*

6.19Representations Relating to the Mortgage backed
Securities.*

6.20Insurance.*

6.21Title to Property.*

6.22No Recourse Sales.*

6.23Fictitious Names.*

Section 7.Affirmative Covenants.*
7.01Information Covenants.*

7.02Books, Records and Inspections.*

7.03Maintenance of Property, Insurance.*

7.04Corporate Franchises.*

7.05Compliance with Statutes, etc.*

7.06ERISA.*

7.07Performance of Obligations.*

7.08Mortgage Loans.*

7.09Payment of Taxes.*

7.10Corporate Separateness.*

7.11Collateral.*

7.12Portfolio Hedging Arrangements.*

7.13Borrowing Base Valuation Reports.*

Section 8.Negative Covenants.*
8.01Liens.*

8.02[Intentionally omitted]..*

8.03Dividends.*

8.04[Intentionally omitted]*

8.05Advances, Investments and Loans.*

8.06Transactions with Affiliates.*

8.07Capital Expenditures.*

8.08Maximum Adjusted Leverage Ratio.*

8.09Minimum Adjusted Tangible Net Worth.*

8.10[Intentionally omitted]*

8.11Modifications of Certificate of Incorporation, By-
Laws, Certain Other Agreements and Collateral.*

8.12Limitation on Restrictions on Subsidiary Dividends
and Other Distributions.*

8.13Limitation on Issuances of Capital Stock by
Subsidiaries.*

8.14Business.*

8.15Portfolio Aging.*

8.16Minimum Current Ratio.*

Section 9.Events of Default.*
9.01Payments.*

9.02Representations, etc.*

9.03Covenants.*

9.04Default Under Other Agreements.*

9.05Default Under Agreements With Lender.*

9.06Bankruptcy, etc.*

9.07ERISA.*

9.08Warehouse Security Agreement.*

9.09[Intentionally omitted]*

9.10Management.*

9.11Judgments.*

9.12Material Adverse Change.*

9.13Default Not a Condition of a 120-Day Demand.*

Section 10.INTENTIONALLY OMITTED.*

Section 11.Miscellaneous.*
11.01Payment of Expenses; Indemnity.*

11.02Notices.*

11.03Benefit of Agreement.*

11.04Remedies Cumulative.*

11.05Calculations; Computations.*

11.06Governing Law; Submission to Jurisdiction;
Venue.*

11.07No Proceedings.*

11.08Counterparts.*

11.09Effectiveness.*

11.10Headings Descriptive.*

11.11Amendment or Waiver.*

11.12Survival.*

11.13Waiver of Jury Trial.*

 

 

 

	
SCHEDULES:
	
 
	
 

	
 
	
 
	
 

	
SCHEDULE 6.11
	
-
	
CAPITALIZATION

	
SCHEDULE 6.12
	
-
	
LIST OF SUBSIDIARIES

	
SCHEDULE 7.01(p)
	
-
	
CREDIT PACKAGE DOCUMENTS (LIST OF DOCUMENTS TO BE DELIVERED
WITH RESPECT TO A PLEDGED MORTGAGE)

	
SCHEDULE 8.04(ii)
	
-
	
EXISTING INDEBTEDNESS

	
SCHEDULE 8.06
	
-
	
LIST OF AFFILIATED APPRAISERS OR TITLE AGENTS

	
 
	
 
	
 

	
EXHIBITS
	
 
	
 

	
 
	
 
	
 

	
EXHIBIT A-1
	
-
	
FORM OF PLEDGE OF COLLATERAL 

	
EXHIBIT A-2
	
-
	
FORM OF REQUEST FOR ADVANCE BY CHECK

	
EXHIBIT A-3
	
-
	
FORM OF REQUEST FOR ADVANCE BY WIRE

	
EXHIBIT B-1
	
-
	
FORM OF WET ADVANCE DISBURSEMENT INSTRUCTION

	
EXHIBIT B-2
	
-
	
FORM OF BORROWER'S WET ADVANCE DISBURSEMENT INSTRUCTION

	
EXHIBIT C
	
-
	
[INTENTIONALLY OMITTED]

	
EXHIBIT D
	
-
	
FORM OF NOTE

	
EXHIBIT E
	
-
	
FORM OF OPINION OF SPECIAL COUNSEL FOR THE BORROWER

	
EXHIBIT F-1
	
-
	
FORM OF OFFICERS' CERTIFICATE FOR BORROWER

	
EXHIBIT F-2
	
-
	
FORM OF OWNERS' AND OFFICERS' CERTIFICATION

	
EXHIBIT G
	
-
	
CREDIT SCORES

	
EXHIBIT H
	
-
	
[INTENTIONALLY OMITTED]

	
EXHIBIT I
	
-
	
FORM OF WAREHOUSE SECURITY AGREEMENT

	
EXHIBIT J
	
-
	
[Intentionally omitted]

	
EXHIBIT K
	
-
	
[Intentionally omitted].

	
EXHIBIT L
	
-
	
FORM OF INTERCREDITOR AGREEMENT

 

WAREHOUSE CREDIT AGREEMENT

WAREHOUSE CREDIT AGREEMENT (as modified, supplemented or
amended from time to time, this "Agreement"), dated as of November 1, 2001,
between E-LOAN, INC., a Delaware corporation (the "Borrower") and GMAC Bank, a
federal savings bank (the "Lender").

W I T N E S S E T H :

WHEREAS, subject to and upon the terms and conditions herein
set forth, the Lender is willing to make available to the Borrower the credit
facilities provided for herein;

NOW, THEREFORE, IT IS AGREED:

	Definitions and Principles of
Construction.

	Defined Terms. 

As used in this Agreement, the following terms shall have the
following meanings (such meanings to be equally applicable to both the singular
and plural forms of the terms defined):

"Adjusted Leverage Ratio" shall mean, as to any
Person, the ratio of the Consolidated Liabilities of such Person to the Adjusted
Tangible Net Worth of such Person.

"Adjusted Tangible Net Worth" shall mean, as to any
Person, (x) the sum of, without duplication, the Consolidated Net Worth of such
Person and its Subsidiaries, plus an amount equal to 0% of the aggregate
principal amount of the Servicing Portfolio of such Person, plus the principal
amount of any Indebtedness that is subordinated to the payment of the
Obligations on such terms as are acceptable to the Lender and that does not
permit or require any principal payment in respect thereof prior to the Expiry
Date in effect from time to time, less (y) the sum of (i) the amount of all
intangible items, including, without limitation, goodwill, franchises, licenses,
patents, trademarks, trade names, copyrights, service marks, brand names, write-
ups of assets and purchased, capitalized or excess servicing, (ii) all
receivables from any officer, director or Affiliate of the Borrower, (iii) all
unpaid stock subscriptions, (iv) the Contingent Obligations of such Person as
determined by the Lender and (v) any other assets determined by the Lender in
its reasonable discretion.

"Advance" shall have the meaning provided in Section
2.01.

"Advance Account" shall mean the depositary account of
the Borrower designated by the Borrower by written notice to the Lender.

"Affiliate" shall mean, as to any Person, any other
Person (other than an individual) directly or indirectly controlling, controlled
by, or under direct or indirect common control with, such Person;
provided, however, that for purposes of Section 8.06, an Affiliate
of the Borrower shall include any Person that directly or indirectly owns more
than 5% of the Borrower and any officer or director of the Borrower or any such
Person. A Person shall be deemed to control another Person if such Person
possesses, directly or indirectly, the power to direct or cause the direction of
the management and policies of such other Person, whether through the ownership
of voting securities, by contract or otherwise.

"Bankruptcy Code" shall mean Title 11 of the United
States Code entitled "Bankruptcy," as now or hereafter in effect, or any
successor thereto.

"Borrower's Wet Advance Disbursement Instruction"
shall have the meaning provided in Section 2.05.

"Borrowing Base" shall mean, as of any date, an amount
that is the sum of the following, with respect to all Eligible Mortgage Loans,
Eligible Nonconforming Mortgage Loans and Liquid Assets pledged to the Lender as
of such date: (1) the sum for all Conforming Loans that are Committed Mortgage
Loans and are the subject of an Interest Rate Commitment of the product of (x)
the Mortgage Loan Aging Percentage with respect to such Mortgage Loan and (y)
100% of the Market Value of such Mortgage Loan, (2) the sum for all other
Conforming Loans that are Committed Mortgage Loans of the product of (x) the
Mortgage Loan Aging Percentage with respect to such Mortgage Loan and (y) 99% of
the Market Value of such Mortgage Loan, (3) the sum for all Jumbo Loans (each of
which shall be a Committed Mortgage Loan) which are the subject of an Interest
Rate Commitment of the product of (x) the Mortgage Loan Aging Percentage with
respect to such Mortgage Loan and (y) 100% of the Market Value of such Mortgage
Loan, (4) the sum for all other Jumbo Loans (each of which shall be a Committed
Mortgage Loan) of the product of (x) the Mortgage Loan Aging Percentage with
respect to such Mortgage Loan and (y) 99% of the Market Value of such Mortgage
Loan, (5) the sum for all Mortgage Loans that are FHA Loans, VA Loans or State
Loans of the product of (x) the Mortgage Loan Aging Percentage with respect to
such Mortgage Loan and (y) 99% of the Market Value of such Mortgage Loan, (6) 0%
of the Market Value of each Mortgage-backed Security, (7) an amount equal to the
aggregate principal amount of the Liquid Assets, (8) the sum for all Credit A-
Loans of the product of (x) the Nonconforming Mortgage Loan Aging Percentage
with respect to such Mortgage Loan and (y) 99% of the Market Value of such
Mortgage Loan, (9) the sum for all Credit B Loans of the product of (x) the
Nonconforming Mortgage Loan Aging Percentage with respect to such Mortgage Loan
and (y) 99% of the Market Value of such Mortgage Loan, (10) the sum for all
Credit C Loans of the product of (x) the Nonconforming Mortgage Loan Aging
Percentage with respect to such Mortgage Loan and (y) 98% of the Market Value of
such Mortgage Loan and (11) the sum for all Credit D Loans of the product of (x)
the Nonconforming Mortgage Loan Aging Percentage with respect to such Mortgage
Loan and (y) 0% of the Market Value of such Mortgage Loan.

"Borrowing Base Valuation Report" shall have the
meaning provided in Section 7.13.

"Business Day" shall mean any day except Saturday,
Sunday and any day which shall be in Greenville, Delaware, a legal holiday or a
day on which banking institutions are authorized or required by law or other
government action to close.

"Cash Equivalents" means (i) securities with
maturities of sixty days or less from the date of acquisition issued or fully
guaranteed or insured by the United States Government or any agency thereof,
(ii) certificates of deposit, eurodollar time deposits, overnight bank deposits,
bankers' acceptances and repurchase agreements of any commercial bank whose
short-term obligations are rated "A-1" by S&P and, if rated by Moody's, "P-
1" by Moody's and, if rated by Fitch, "F-1" by Fitch, having maturities of sixty
days or less from the date of acquisition, (iii) commercial paper having
maturities of sixty days or less from the date of acquisition, rated at least
"A-1" by S&P or "P-1" by Moody's and, if rated by Fitch, "F-1" by Fitch,
(iv) money market funds rated at least "AAAm" or "AAA-G" by S&P or "P-1" by
Moody's and, if rated by Fitch, "AAA" by Fitch, and (v) repurchase agreements
with counterparties whose short-term obligations are rated at least "A-1" by
S&P or "P-1" by Moody's and, if rated by Fitch, "F-1" with a term of sixty
days or less.

"Code" shall mean the Internal Revenue Code of 1986,
as amended from time to time.

"Collateral" shall mean all "Collateral" as defined in
the Warehouse Security Agreement.

"Collateral Documents" shall mean, as to a Mortgage
Loan which has been or is to be pledged to the Lender as Collateral, the
following documents and instruments:

	The original Mortgage Note executed with respect to such
Mortgage Loan by a third party in favor of the Borrower (or properly endorsed to
the Borrower if purchased or acquired by the Borrower) and endorsed in blank by
the Borrower;

	The original recorded Mortgage securing such Mortgage
Note or a copy of the original Mortgage securing such Mortgage Note, certified
by the Borrower or a title company or escrow company reasonably satisfactory to
the Lender to be a true copy of the original instrument submitted for
recording;

	If the Mortgage Note was purchased by the Borrower, an
original properly recorded assignment of the related Mortgage to the Borrower or
a copy of such assignment certified by the Borrower or a title or escrow company
reasonably satisfactory to the Lender to be a true copy of the original
instrument submitted for recording and a certified copy of each intervening
assignment of such Mortgage, if any;

	An assignment of the Mortgage by the Borrower to the
Lender fully completed and in recordable form. If appropriate filing and
recording information regarding the Mortgage has not been inserted into the
assignment, the Borrower hereby authorizes the Lender to insert such
information, when available. Such assignment shall not be filed for recordation
unless the Lender shall in good faith deem such action necessary to further
secure any Advances, in which case the Lender may file of record any or all such
assignments. The Borrower shall immediately reimburse the Lender for any and all
costs and expenses incurred by the Lender in connection with such recordation;

	A closing protection letter executed by an authorized
representative of a title insurance company or escrow company reasonably
satisfactory to the Lender stating that the closing agent with respect to such
Mortgage Loan is an authorized agent of such title insurance company or escrow
company; 

and

	Such other documents as the Lender may reasonably require
from time to time, including, without limitation, a copy of any Purchase
Commitment or Master Commitment relating to the Mortgage Loan.

"Collateral Value" shall mean, at any time, with
respect to a Mortgage Loan, or a Mortgage backed Security, the amount resulting
from that part of the calculation of the Borrowing Base at such time that
relates to such Mortgage Loan or Mortgage backed Security.

"Combined Loan-to-Value Ratio" shall mean, as to any
Mortgage Loan, the ratio expressed as a percentage that the sum of the original
principal balance of such Mortgage Loan and the then current principal balance
of any related first priority mortgage bears to the appraised value of the
related mortgaged property at the time such Mortgage Loan was originated.

"Commitment" shall mean the obligation of the Lender
to make Advances in an aggregate principal amount outstanding at any time not to
exceed $15,000,000.

"Committed Mortgage Loans" shall mean all Mortgage
Loans pledged to the Lender pursuant to the terms of this Agreement and of the
Warehouse Security Agreement (i) which satisfy all of the requirements of any
Purchase Commitment or are covered by a Hedging Contract, (ii) which could be
delivered under any such Purchase Commitment, and (iii) which, in respect of all
Mortgage Loans of a particular type and yield, do not in the aggregate have a
principal amount in excess of the sum of (A) the aggregate then remaining amount
of all Purchase Commitments the requirements of which are satisfied by Mortgage
Loans of such type and yield owned by the Borrower plus (B) the aggregate amount
of all Hedging Contracts that cover Mortgage Loans of such type and yield owned
by the Borrower.

"Conforming Loan" shall mean a Mortgage Loan (other
than a VA Loan, an FHA Loan or a State Loan) that is underwritten in conformity
with FHLMC or FNMA underwriting standards and is otherwise eligible for purchase
by FNMA or FHLMC.

"Consolidated Liabilities" shall mean, as to any
Person, the liabilities of such Person and its Subsidiaries determined on a
consolidated basis and in accordance with GAAP, applied on a consistent basis,
and shall include in any event the Contingent Obligations of such Person and its
Subsidiaries.

"Consolidated Net Worth" shall mean, as to any Person,
the Net Worth of such Person and its Subsidiaries determined on a consolidated
basis and in accordance with GAAP, applied on a consistent basis.

"Consolidated Subsidiaries" shall mean, as to any
Person, all Subsidiaries of such Person which are or are required to be
consolidated with such Person for financial reporting purposes in accordance
with GAAP.

"Contingent Obligation" shall mean, as to any Person,
any obligation of such Person arising from an existing condition or situation
that involves uncertainty as to outcome and that will be resolved by the
occurrence or nonoccurrence of some future event, including but not limited to
any obligation of such Person guaranteeing or intended to guarantee any
Indebtedness, leases, dividends or other obligations ("primary obligations") of
any other Person (the "primary obligor") in any manner, whether directly or
indirectly; provided, however, that the term Contingent Obligation shall not
include endorsements of instruments for deposit or collection in the ordinary
course of business. The amount of any Contingent Obligation shall be deemed to
be an amount equal to the stated or determinable amount of the primary
obligation in respect of which such Contingent Obligation is made or, if not
stated or determinable, the maximum reasonably anticipated liability in respect
thereof (assuming such Person is required to perform thereunder) as determined
by the Lender.

"Credit A- Loan" shall mean a Mortgage Loan (other
than a Mortgage Loan that satisfies all the requirements of an Eligible Mortgage
Loan) the obligor of which has a Credit Score as described on Exhibit G
hereto.

"Credit B Loan" shall mean a Mortgage Loan (other than
a Mortgage Loan that satisfies all the requirements of an Eligible Mortgage
Loan) the obligor of which has a Credit Score as described on Exhibit G
hereto.

"Credit C Loan" shall mean a Mortgage Loan (other than
a Mortgage Loan that satisfies all the requirements of an Eligible Mortgage
Loan) the obligor of which has a Credit Score as described on Exhibit G
hereto.

"Credit D Loan" shall mean a Mortgage Loan (other than
a Mortgage Loan that satisfies all the requirements of an Eligible Mortgage
Loan) the obligor of which has a Credit Score as described on Exhibit G
hereto.

"Credit Documents" shall mean this Agreement, the
Note, the Warehouse Security Agreement and any other document or agreement
executed in connection herewith.

"Credit Package Documents" shall have the meaning
provided in Section 7.01(p).

"Credit Score" shall mean the numeric consumer credit
score developed by Fair Isaac & Co., Inc. and referred to as a "FICO
Score".

"Current Ratio" shall mean, as to any Person, the
ratio of current assets to current liabilities, as determined in accordance with
GAAP, applied on a consistent basis.

"Custodian" shall mean, with respect to any Investor,
any financial institution selected by such Investor to act as a custodian for
Mortgage Loans acquired or to be acquired by such Investor; provided that such
financial institution has been approved by the Lender and meets all applicable
requirements of such Investor to act as such custodian.

"Default" shall mean any event, act or condition which
with notice or lapse of time, or both, would constitute an Event of Default.

"Effective Date" shall have the meaning provided in
Section 11.09.

"Eligible Mortgage Loan" shall mean at the time of the
determination thereof (a) a Mortgage Loan, which at such time (i) is pledged as
Collateral pursuant to the terms of this Agreement and of the Warehouse Security
Agreement and is not pledged as security for any Indebtedness owing to, or
otherwise subject to a Lien for the benefit of, any person other than the
Lender, (ii) is a First Mortgage Loan, (iii) is, without duplication, a
Conforming Loan, a Jumbo Loan, an FHA Loan, a VA Loan or a State Loan, (iv) is
subject to a Purchase Commitment or covered by a Hedging Contract or is a
Mortgage Loan that bears interest at an adjustable rate and is covered by a
Master Commitment, (v) in the case of a Mortgage Loan that is not subject to a
Wet Advance, has an Origination Date that is less than 180 calendar days prior
to such time, (vi) in the case of a Mortgage Loan that is subject to a Wet
Advance, has an Origination Date that is not more than five Business Days prior
to such time and (vii) has a Combined Loan-to-Value Ratio of 100% or less,
excluding in all such cases, however, any Mortgage Loan about which any of the
representations, warranties and agreements contained in Section 6.18 is not true
and correct; provided that, in the case of a Mortgage Loan (other than a
State Loan), the interest rate on such Mortgage Loan was, as of the date on
which such interest rate was set or established, at least equal to the then
current market rate of interest for mortgage loans of the same type as
determined by the Lender; or (b) a Mortgage backed Security which at such time
(i) is subject to a Purchase Commitment, (ii) is pledged as Collateral pursuant
to the terms of this Agreement and of the Warehouse Security Agreement and (iii)
was issued by FNMA, FHLMC or GNMA not more than 60 calendar days prior to such
time. 

"Eligible Nonconforming Mortgage Loan" shall mean at
the time of the determination thereof, a Mortgage Loan, which at such time (i)
is pledged as Collateral pursuant to the terms of this Agreement and of the
Warehouse Security Agreement and is not pledged as security for any Indebtedness
owing to, or otherwise subject to a Lien for the benefit of, any person other
than the Lender, (ii) is, without duplication, a First Mortgage Loan or a Second
Mortgage Loan, (iii) is subject to a Purchase Commitment, (iv) has and has had
no delinquency with respect to any payment due thereunder, (v) has no
deficiencies in respect of the documentation therefor, (vi) is, without
duplication, a Credit A- Loan, a Credit B Loan, a Credit C Loan or a Credit D
Loan, (vii) in the case of a Mortgage Loan that is not subject to a Wet Advance,
has an Origination Date that is less than 20 calendar days prior to such time,
(viii) in the case of a Mortgage Loan that is subject to a Wet Advance, has an
Origination Date that is not more than five Business Days prior to such time and
(ix) has a Combined Loan-to-Value Ratio of 100% or less, excluding in all such
cases, however any Mortgage Loan about which any of the representations,
warranties and agreements contained in Section 6.18 is not true and correct;
provided that the interest rate on such Mortgage Loan was, as of the date on
which such interest rate was set or established, at least equal to the then
current market rate of interest for mortgage loans of the same type as
determined by the Lender.

"ERISA" shall mean the Employee Retirement Income
Security Act of 1974, as amended from time to time, and the regulations
promulgated and rulings issued thereunder. 

"ERISA Affiliate" shall mean any person (as defined in
Section 3(9) of ERISA) which together with the Borrower or any of its
Subsidiaries would be a member of the same "controlled group" within the meaning
of Section 414(b), (m), (c) and (o) of the Code.

"Event of Default" shall have the meaning provided in
Section 9.

"Existing Indebtedness" shall have the meaning
provided in Section 8.04(ii).

"Expiry Date" shall mean the earlier of (i) March 31,
2002 as such date may be extended upon mutual agreement between the Borrower and
the Lender from time to time, and (ii) the date that is 120 days after the date
on which the Lender shall have given the Borrower the notice referred to in
Section 9.13 hereof. 

"Fees" shall mean all fees and expenses required to be
paid by the Borrower pursuant to Section 3.01.

"FHA" shall mean the Federal Housing Administration or
any successor thereto.

"FHA Loan" shall mean a Mortgage Loan which (i) is
eligible for insurance by FHA and (ii) is so insured or is subject to a current
binding and enforceable commitment for such insurance pursuant to the provisions
of the National Housing Act, as now in effect and as may be hereafter amended
from time to time, and is otherwise eligible for inclusion in a GNMA Mortgage
backed Security pool.

"FHLMC" shall mean the Federal Home Loan Mortgage
Corporation or any successor thereto.

"First Mortgage Loan" shall mean a Mortgage Loan that
is underwritten in conformity with underwriting standards approved by the
applicable Investor and is secured by a first priority Mortgage.

"Fitch" shall mean Fitch IBCA, Inc.

"FNMA" shall mean the Federal National Mortgage
Association or any successor thereto.

"GAAP" shall mean generally accepted accounting
principles set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as may be approved by a significant
segment of the accounting profession, which are applicable to the circumstances
as of the date of determination.

"GNMA" shall mean the Governmental National Mortgage
Association or any successor thereto.

"Hedging Contract" shall mean a written contractual
arrangement designed to provide protection against fluctuations in interest
rates with respect to Mortgage Loans and commitments made to prospective
Mortgage Loan obligors to extend Mortgage Loans at specified rates of interest,
in each case in accordance with guidelines acceptable to the Lender.

"HUD" shall mean the Department of Housing and Urban
Development or any successor thereto.

"Indebtedness" shall mean, as to any Person, without
duplication, (i) all indebtedness (including principal, interest, fees and
charges) of such Person for borrowed money or for the deferred purchase price of
property or services, (ii) the face amount of all letters of credit issued for
the account of such Person and all drafts drawn thereunder, (iii) all
liabilities secured by any Lien on any property owned by such Person, whether or
not such liabilities have been assumed by such Person, (iv) the aggregate amount
required in accordance with GAAP to be capitalized under leases under which such
Person is the lessee and (v) all Contingent Obligations of such Person.

"Initial Borrowing Date" shall mean the date on which
the initial incurrence of Advances occurs.

"Insolvency Event" shall mean, with respect to any
Person, the occurrence of any of the following events: (i) such Person shall
become insolvent or generally fail to pay, or admit in writing its inability to
pay, its debts as they become due, or shall voluntarily commence any proceeding
or file any petition under any bankruptcy, insolvency or similar law or seeking
dissolution, liquidation or reorganization or the appointment of a receiver,
trustee, custodian, conservator or liquidator for itself or a substantial
portion of its property, assets or business or to effect a plan or other
arrangement with its creditors, or shall file any answer admitting the
jurisdiction of the court and the material allegations of an involuntary
petition filed against it in any bankruptcy, insolvency or similar proceeding,
or shall be adjudicated bankrupt, or shall make a general assignment for the
benefit of creditors, or such Person, or a substantial part of its property,
assets or business, shall be subject to, consent to or acquiesce in the
appointment of a receiver, trustee, custodian, conservator or liquidator for
itself or a substantial portion of its property, assets or business; (ii)
corporate action shall be taken by such Person for the purpose of effectuating
any of the foregoing; (iii) an order for relief shall be entered in a case under
the Bankruptcy Code in which such Person is a debtor; or (iv) involuntary
proceedings or an involuntary petition shall be commenced or filed against such
Person under any bankruptcy, insolvency or similar law or seeking the
dissolution, liquidation or reorganization of such Person or the appointment of
a receiver, trustee, custodian, conservator or liquidator for such Person or of
a substantial part of the property, assets or business of such Person, or any
writ, order, judgment, warrant of attachment, execution or similar process shall
be issued or levied against a substantial part of the property, assets or
business of such Person, and such proceeding or petition shall not be dismissed,
or such execution or similar process shall not be released, vacated or fully
bonded, within sixty (60) days after commencement, filing or levy, as the case
may be.

"Interest Rate Commitment" shall mean a commitment
whereby the Borrower agrees to deliver a Mortgage Loan to GMAC Bank, as
investor, according to the terms of a Purchase Commitment and GMAC Bank agrees
to a specified interest rate and purchase price for a designated length of
time.

"Investor" shall mean FHLMC, FNMA, GNMA or any
financial institution, broker, dealer, institutional investor or state agency or
instrumentality approved by the Lender.

"Jumbo Loan" shall mean a Mortgage Loan (other than an
FHA Loan, a VA Loan, or a State Loan) that is underwritten in accordance with
standards approved by the Lender that are generally comparable to the standards
established by FNMA or FHLMC in all respects other than the original principal
amount of the Mortgage Loan and that were established by an Investor (other than
FHLMC, FNMA or GNMA). 

"LIBOR Rate" shall mean a rate of interest equal to
the London Interbank Offered Rate for U. S. dollar deposits for an interest
period of one month as quoted or published by Telerate, Bloomberg or any other
rate quoting service, selected by Lender in its sole discretion for any day
during a given month. 

"Lien" shall mean any mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other),
preference, priority or other security agreement of any kind or nature
whatsoever (including, without limitation, any conditional sale or other title
retention agreement, any financing or similar statement or notice filed under
the UCC or any other similar recording or notice statute, and any lease having
substantially the same effect as any of the foregoing).

"Liquid Assets" shall mean (i) certificates of deposit
of any commercial bank whose short-term obligations are rated "A-1+" by S&P
and, if rated by Moody's, "P-1" by Moody's and, if rated by Fitch, "F-1+" by
Fitch having maturities of 60 days or less from the date of acquisition and (ii)
securities issued or fully guaranteed or insured by the United States Government
or any agency thereof having maturities of 60 days or less from the date of
acquisition.

"Margin Stock" shall have the meaning provided in
Regulation U of the Board of Governors of the Federal Reserve System.

"Market Value" shall mean as of any date at which the
amount thereof is to be determined, (i) as to any Mortgage backed Security, the
purchase price therefor (exclusive of any accrued interest included in such
purchase price) under the Purchase Commitment with respect thereto; and (ii) as
to any Mortgage Loan an amount equal to the lower of (A) an amount equal to (1)
with respect to a Mortgage Loan that was funded directly by the Borrower to the
obligor thereunder, the outstanding principal amount of such Mortgage Loan or
(2) with respect to a Mortgage Loan that was purchased by the Borrower, the
lesser of (x) the purchase price paid by the Borrower therefor (exclusive of any
accrued interest or servicing release premium included in such purchase price)
and (y) the outstanding principal amount of such Mortgage Loan, as applicable,
(B) the amount determined by the Lender, in its reasonable discretion, as the
price (exclusive of any accrued interest that would be included in such price)
at which such Mortgage Loan could on the date of such determination be sold in
the secondary market to a bona fide investor in an arm's-length transaction and
(C) the price at which an Investor has committed to purchase such Mortgage
Loan.

"Master Commitment" shall mean a written master
commitment or any other written commitment, on general terms and conditions
approved by the Lender, from an Investor to purchase from the Borrower from time
to time up to a specified dollar amount of Mortgage Loans without specification
of the yield or purchase price of each such Mortgage Loan.

"Monthly Average LIBOR Rate" shall mean the average of
all LIBOR rates quoted in any given month.

"Moody's" shall mean Moody's Investors Service,
Inc.

"Mortgage" shall mean a first or second mortgage,
first or second deed of trust, first or second deed to secure debt or other
first or second security device which is customary and serves the same function
as a mortgage under the law and practice in the jurisdiction in which the
premises subject to the mortgage are located. For all Mortgage Loans secured by
premises located in states in which it is customary to use deeds of trust or
security deeds as the security device, a deed of trust or security deed, as the
case may be, shall be used as the security device. Mortgages shall, unless the
Lender shall otherwise approve, be on forms acceptable to FNMA, GNMA or FHLMC.

"Mortgage backed Securities" shall mean securities
that are (A)(i) issued in accordance with guidelines established by GNMA, FNMA
or FHLMC, (ii) guaranteed as to payment by GNMA, FNMA or FHLMC in accordance
with the guidelines established by such entities and (iii) secured by a pool of
Mortgage Loans originally included as Eligible Mortgage Loans hereunder, or
which would have otherwise satisfied the requirements for Eligible Mortgage
Loans if such Mortgage Loans had been pledged to the Lender pursuant to the
terms of this Agreement and of the Warehouse Security Agreement, (B) subject to
a Purchase Commitment and (C) issued in book entry form. 

"Mortgage Bankers' Reporting Forms" shall have the
meaning provided in Section 7.01(o).

"Mortgage Loan" shall mean a loan evidenced by a
Mortgage Note and secured by a Mortgage encumbering a completed one to four
family residential property (including, without limitation, condominium units
and excluding cooperative ownership interests).

"Mortgage Loan Aging Percentage" shall mean, as of any
date, with respect to any Eligible Mortgage Loan, (i) 100% if such Mortgage Loan
has an Origination Date that is less than 90 days prior to such date, (ii) 75%
if such Mortgage Loan has an Origination Date that is less than 120 days and
more than 89 days prior to such date, (iii) 50% if such Mortgage Loan has an
Origination Date that is less than 150 days and more than 119 days prior to such
date, (iv) 25% if such Mortgage Loan has an Origination Date that is less than
180 days and more than 149 days prior to such date and (v) 0% if such Mortgage
Loan has an Origination Date that is 180 or more days prior to such date. 

"Mortgage Note" shall mean a promissory note executed
by a competent party which is secured by a Mortgage.

"Net Worth" shall mean, as to any Person, the sum of
(i) its capital stock, capital in excess of par or stated value of shares of its
capital stock, retained earnings and any other account which, in accordance with
GAAP, constitutes stockholder equity less (ii) any treasury stock, any unpaid
stock subscriptions and any subordinated or other loans from stockholders, in
each case to the extent included in clause (i).

"Nonconforming Commitment" shall have the meaning
provided in Section 2.01. 

"Nonconforming Mortgage Loan Aging Percentage" shall
mean, as of any date, with respect to any Eligible Nonconforming Mortgage Loan,
(i) 100% if such Mortgage Loan has an Origination Date that is less than 60 days
prior to such date, (ii) 50% if such Mortgage Loan has an Origination Date that
is less than 90 days and more than 59 days prior to such date and (iii) 0% if
such Mortgage Loan has an Origination Date that is 90 days or more prior to such
date.

"Note" shall have the meaning provided in Section
2.06.

"Obligations" shall mean all amounts owing to the
Lender pursuant to the terms of this Agreement and any other Credit
Document.

"Office" shall mean the office of the Lender located
at 100 Century Parkway, Mt. Laurel, NJ 08054 or such other address as the Lender
may specify from time to time in a written notice to the Borrower and the
Lender.

"Origination Date" shall mean, with respect to any
Mortgage Loan, the date such Mortgage Loan was funded to the obligor
thereon.

"PBGC" shall mean the Pension Benefit Guaranty
Corporation established pursuant to Section 4002 of ERISA or any successor
thereto.

"Person" shall mean any individual, partnership, joint
venture, firm, corporation, association, trust or other enterprise or any
government or political subdivision or any agency, department or instrumentality
thereof. 

"Plan" shall mean any multiemployer plan or single-
employer plan as defined in Section 4001 of ERISA, which is maintained or
contributed to by (or to which there is an obligation to contribute of), or at
any time during the five calendar years preceding the date of this Agreement was
maintained or contributed to by (or to which there is an obligation to
contribute of), the Borrower or by a Subsidiary of the Borrower or an ERISA
Affiliate. 

"Purchase Commitment" shall mean a current binding and
enforceable written commitment (or contract for purchase) from an Investor to
purchase from the Borrower Mortgage Loans or Mortgage backed Securities of a
particular type and yield owned by the Borrower at a committed price, which
commitment shall at all times be subject to approval by the Lender as to terms
and conditions. 

"Reportable Event" shall mean an event described in
Section 4043(b) of ERISA with respect to a Plan as to which the 30-day notice
requirement has not been waived by the PBGC.

"Request for Advance" shall have the meaning provided
in Section 2.04.

"S&P" shall mean Standard & Poor's
Corporation.

"Second Mortgage Loan" shall mean a Mortgage Loan that
is underwritten in conformity with underwriting standards approved by the
applicable Investor and is secured by a second priority Mortgage.

"Servicing Portfolio" shall mean, as to any Person,
all Mortgage Loans the servicing or subservicing rights for which are owned by
such Person and with respect to which such Person functions as the servicing
institution.

"State Loan" shall mean a Mortgage Loan that is (i)
underwritten in conformity with underwriting standards that are established by a
state agency or instrumentality and approved by the Lender and (ii) subject to a
Purchase Commitment from such state agency or instrumentality.

"Subsidiary" shall mean, as to any Person, (i) any
corporation more than 50% of whose stock of any class or classes having by the
terms thereof ordinary voting power to elect a majority of the directors of such
corporation (irrespective of whether or not at the time stock of any class or
classes of such corporation shall have or might have voting power by reason of
the happening of any contingency) is at the time owned by such Person and/or one
or more Subsidiaries of such Person and (ii) any partnership, association, joint
venture or other entity in which such Person and/or one or more Subsidiaries of
such Person has (A) more than a 50% equity interest at the time or (B) an
interest satisfying the provisions of clause (i) hereof in any general partner
of any limited partnership or joint venture.

"Taxes" shall have the meaning provided in Section
11.01(e).

"UCC" shall mean the Uniform Commercial Code as from
time to time in effect in Delaware or any other relevant jurisdiction, as
applicable.

"Unfunded Current Liability" of any Plan means the
amount, if any, by which the present value of the accrued benefits under the
Plan as of the close of its most recent plan year, determined in accordance with
GAAP, based upon the actuarial assumptions used by the Plan's actuary in the
most recent annual valuation of the Plan, exceeds the fair market value of the
assets allocable thereto, determined in accordance with Section 412 of the
Code.

"VA" shall mean the Veterans Administration or any
successor thereto.

"VA Loan" shall mean a Mortgage Loan which is eligible
for guarantee by VA and is either so guaranteed or is subject to a current
binding and enforceable commitment for such guarantee pursuant to the provisions
of the Servicemen's Readjustment Act, as now in effect and as may be hereafter
amended from time to time, and is otherwise eligible for inclusion in a GNMA
Mortgage backed Security pool.

"Warehouse Payment Account" shall mean the segregated
direct deposit account number 00377975 maintained by the Lender pursuant to
Sections 4.04 and 4.05 of this Agreement. 

"Warehouse Security Agreement" shall have the meaning
provided in Section 5.09.

"Wet Advance" shall mean an Advance made by the Lender
against the pledge of Eligible Mortgage Loans or Eligible Nonconforming Mortgage
Loans with respect to which the Borrower has delivered to the Lender a Request
for Advance in accordance with Section 2.04 in lieu of the delivery of the
Mortgage Note related thereto; provided, however, that from and after the date
on which the Mortgage Note with respect to any such Mortgage Loan is received by
the Lender, such Advance shall cease to be a Wet Advance.

"Wet Advance Disbursement Instruction" shall have the
meaning provided in Section 2.05.

"Wholly-Owned Subsidiary" shall mean, as to any
Person, (i) any corporation 100% of whose capital stock is at the time owned by
such Person and/or one or more Wholly-Owned Subsidiaries of such Person and (ii)
any partnership, association, joint venture or other entity in which such Person
and/or one or more Wholly-Owned Subsidiaries of such Person has a 100% equity
interest at such time.

	Principles of Construction. 

	All references to sections, schedules and exhibits are to
sections, schedules and exhibits in or to this Agreement unless otherwise
specified. The words "hereof," "herein," "hereto" and "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement.

	All accounting terms not specifically defined herein
shall be construed in accordance with GAAP in conformity with those used in the
preparation of the financial statements referred to in Section
6.05(a).

	Amount and Terms of Credit.

	Commitment. 

Subject to and upon the terms and conditions set forth
herein, the Lender agrees, at any time and from time to time prior to the Expiry
Date (or such earlier date as the Commitment shall have been terminated pursuant
to the terms hereof), to make an advance or advances (each an "Advance" and,
collectively, the "Advances") to the Borrower, which Advance: (i) shall be made
at any time and from time to time in accordance with the terms hereof on and
after the Effective Date and prior to the Expiry Date; (ii) shall bear interest
as provided in Section 2.07; (iii) may be prepaid and reborrowed in accordance
with the provisions hereof; and (iv) shall be made against the pledge by the
Borrower of Eligible Mortgage Loans, Eligible Nonconforming Mortgage Loans or
Liquid Assets as Collateral for such Advance as provided herein and in the
Warehouse Security Agreement; provided, however, that (1) the
aggregate principal amount of Advances outstanding at any time shall not exceed
the lesser of (x) the Commitment and (y) the Borrowing Base, at such time, (2)
the aggregate principal amount of Advances outstanding at any time
secured by Mortgage backed Securities shall not exceed 0% of the Commitment, (3)
the aggregate principal amount of Wet Advances outstanding at any time shall not
exceed 30% of the Commitment, (4) the aggregate principal amount of Advances
outstanding at any time secured by Jumbo Loans shall not exceed 75% of the
Commitment, (5) the aggregate principal amount of Advances outstanding at any
time secured by Eligible Nonconforming Mortgage Loans shall not exceed
$1,500,000 (the "Nonconforming Commitment"), (6) the aggregate principal amount
of Advances outstanding at any time secured by Credit A- Loans shall not exceed
100% of the Nonconforming Commitment, (7) the aggregate principal amount of
Advances outstanding at any time secured by Credit B Loans shall not exceed 100%
of the Nonconforming Commitment, (8) the aggregate principal amount of Advances
outstanding at any time secured by Credit C Loans shall not exceed 50% of the
Nonconforming Commitment and (9) the aggregate principal amount of Advances
outstanding at any time secured by Credit D Loans shall not exceed 0% of the
Nonconforming Commitment.

	Minimum Borrowing Amount. 

The principal amount of each Advance shall not be less than
$500.

	Pledge of Collateral. 

Whenever the Borrower desires to pledge a Mortgage Loan or
Mortgage Backed Security to the Lender, it shall deliver to the Lender at its
office a pledge of Collateral substantially in the form of Exhibit A-1 (the
"Pledge of Collateral"). Each Pledge of Collateral: (i) shall be appropriately
completed by an authorized employee of the Borrower to describe the Collateral
to be pledged; and (ii) shall have attached thereto each of the Collateral
Documents required in the Pledge of Collateral, including, without limitation,
in the case of a Mortgage Loan with respect to which a Wet Advance is being
requested in accordance with Section 2.04, an assignment by the Borrower to the
Lender of the related Mortgage fully completed and in recordable form.

	Request for Advance. 

Whenever the Borrower desires to incur an Advance hereunder,
it shall deliver to the Lender at its Office a request for Advance substantially
in the form of Exhibit A-2 or Exhibit A-3, as applicable (the "Request for
Advance") not later than the close of business on the Business Day prior to the
proposed date of such Advance; provided, however, that before submitting a
request for an Advance to be secured by a Mortgage Loan with an outstanding
principal amount in excess of $650,000, the Borrower shall have obtained the
prior approval of the Lender. Each Request for Advance: (i) shall be
appropriately completed by an authorized employee of the Borrower to specify the
aggregate principal amount of the Advance or Wet Advance to be made and the
proposed date of such Advance (which shall be a Business Day); and (ii) shall,
in the case of a Wet Advance, include instructions with respect to the
disbursement of such Wet Advance. 

	Disbursement of Funds. 

	No later than 3:00 P.M. E.S.T. on the date specified in
the Request for Advance with respect to any Advance other than a Wet Advance,
the Lender may, at its option, make available to the Borrower the amount of such
Advance requested to be made on such date by wire transfer of funds to the
Borrower's Advance Account. 

	No later than 3:00 P.M. E.S.T. on the date specified in
the Request for Advance with respect to any Wet Advance, the Lender shall
disburse the amount of such Wet Advance directly to the appropriate title
company, escrow agent or closing agent, by cashier's check or wire transfer in
accordance with the instructions set forth in the related Request for Advance,
the Lender's customary practice and the requirements of applicable law.

	In the event that a Wet Advance is disbursed by a
cashier's check sent by the Lender or the Lender's bank to the appropriate title
company, escrow agent or closing agent, the Lender shall disburse the amount of
such Wet Advance under cover of an instruction letter substantially in the form
of Exhibit B-1 (a "Wet Advance Disbursement Instruction"). In the event that a
Wet Advance is to be disbursed by wire transfer or by a cashier's check printed
at the Borrower's office and sent by the Borrower to the appropriate title
company, escrow agent or closing agent, the Borrower shall deliver to the
appropriate title company, escrow agent or closing agent an instruction letter
substantially in the form of Exhibit B-2 (a "Borrower's Wet Advance Disbursement
Instruction"). Upon the request of the Lender, the Borrower shall deliver to the
Lender a copy of any Borrower's Wet Advance Disbursement Instruction delivered
by the Borrower.

	Note. 

The Borrower's obligation to pay the principal of, and
interest on, all Advances made to it by the Lender shall be evidenced by a
promissory note substantially in the form of Exhibit D (the "Note"). The Note
shall (i) be executed by the Borrower, (ii) be payable to the order of the
Lender and be dated on or prior to the Initial Borrowing Date, (iii) be in a
stated principal amount equal to the Commitment and be payable in the aggregate
principal amount of the Advances evidenced thereby, (iv) mature, with respect to
each Advance evidenced thereby, on the Expiry Date, (v) bear interest as
provided in Section 2.07, (vi) be subject to mandatory prepayment as provided in
Section 4.02 and (vii) be entitled to the benefits of this Agreement and the
other Credit Documents. The Lender will note on its internal records the amount
of each Advance made by it and each payment in respect thereof and will prior to
any transfer of the Note endorse on the reverse side thereof the outstanding
principal amount of Advances evidenced thereby. Failure to make any such
notation shall not affect the Borrower's obligations in respect of such
Advances.

	Interest. 

	The Borrower agrees to pay interest in respect of the
outstanding principal amount of the Advances from the date the proceeds thereof
are made available to the Borrower until the maturity thereof (whether by
acceleration or otherwise) (i) with respect to Advances secured by Eligible
Mortgage Loans, at a rate per annum equal to 2.00% in excess of the Monthly
Average LIBOR Rate in effect from time to time and (ii) with respect to Advances
secured by Eligible Nonconforming Mortgage Loans, at a rate per annum equal to
2.25% in excess of the Monthly Average LIBOR Rate in effect from time to time;
provided, however, that with respect to any Advance which is disbursed by
cashier's check, which Advance has been outstanding for less than sixteen days
(16), the applicable rate of interest, calculated in accordance with the
provisions of this Section 2.07(a), shall be reduced by .50%. 

	Overdue principal and, to the extent permitted by law,
overdue interest, and any other overdue amount payable by the Borrower
hereunder, shall bear interest at a rate per annum equal to 4% per annum in
excess of the rate specified in clause (a) above in effect from time to time;
provided, however, that no Advance shall bear interest at a rate in excess of
the maximum rate permitted by applicable law.

	Accrued (and theretofore unpaid) interest shall be
payable in respect of the Advances (i) monthly in arrears on the fifth Business
Day of each calendar month with respect to interest accrued during the preceding
calendar month, (ii) on any prepayment which reduces the outstanding Advances to
zero, (iii) at maturity (whether by acceleration, demand or otherwise) and (iv)
after such maturity, on demand. The Lender shall provide the Borrower with a
notice setting forth the interest accrued with respect to each calendar month
not later than the third Business Day following the end of such calendar
month.

	Fees.

	Fees. 

	The Borrower shall pay the Lender an administration fee
(the "Administration Fee") with respect to each calendar month during the term
of this Agreement in an amount equal to the sum of $20.00 for each Mortgage Loan
pledged as Collateral for the first time during such calendar month. In
addition, the Borrower shall pay all administrative costs of the Lender in
connection with the making of an Advance and the handling of Collateral,
including, but not limited to, the costs of overnight and express delivery,
cashier's checks and wire transfers. The Administration Fee and administrative
costs with respect to each calendar month will be due and payable on the fifth
Business Day following the end of such calendar month.

	The Lender shall provide the Borrower with a notice
setting forth the Administration Fee accrued and the administrative costs with
respect to each calendar month not later than the third Business Day following
the end of such calendar month.

	Prepayments; Payments.

	Voluntary Prepayments. 

The Borrower shall have the right to prepay the Advances,
without premium or penalty, in whole or in part from time to time on the
following terms and conditions: (i) the Borrower shall give the Lender at its
Office notice of its intent to prepay not later than 2:00 p.m. E.S.T. at least
one Business Day prior to the date of such prepayment; provided, however, that
with respect to any prepayment of an amount in excess of 30% of the Advances
then outstanding, the Borrower shall give the Lender notice of its intent to
prepay at least 5 Business Days prior to the date of such prepayment, and (ii)
the amount of such prepayment shall be at least $10,000.

	Mandatory Prepayments. 

Except as set forth in Section 4.03(b), a prepayment of
Advances shall be required, without notice or demand of any kind to the
Borrower, as follows:

	if on any date the aggregate principal amount of Advances
outstanding (after giving effect to all other repayments thereof on such date)
exceeds the lesser of (x) the Commitment or (y) the Borrowing Base, as then in
effect, the Borrower shall immediately prepay the principal of Advances in an
aggregate amount equal to such excess;

	if on any date the aggregate principal amount outstanding
of Advances secured by Mortgage backed Securities exceeds 0% of the Commitment,
the Borrower shall immediately prepay the principal of Advances secured by
Mortgage backed Securities in an aggregate amount equal to such excess;

	if on any date the aggregate principal amount outstanding
of Wet Advances exceeds 30% of the Commitment, the Borrower shall immediately
prepay the principal of Wet Advances in an aggregate amount equal to such
excess;

	if on any date the aggregate principal amount outstanding
of Advances secured by Jumbo Loans exceeds 75% of the Commitment, the Borrower
shall immediately prepay the principal of Advances secured by Jumbo Loans in an
aggregate amount equal to such excess;

	if (i) 60 calendar days shall have elapsed from the date
of first issuance of a Mortgage backed Security in respect of which an Advance
has been made hereunder, and (ii) such Mortgage backed Security has not been
sold by the Borrower and paid for by an Investor and (iii) the Advances secured
by such Mortgage backed Security have not been prepaid pursuant to any other
clause of this Section 4.02, the Borrower shall immediately prepay the principal
of Advances in an aggregate amount equal to the Collateral Value of such
Mortgage backed Security;

	if the Lender shall have notified the Borrower or the
Borrower otherwise becomes aware that any Mortgage Loan or Mortgage backed
Security originally included as an Eligible Mortgage Loan or an Eligible
Nonconforming Mortgage Loan no longer constitutes an Eligible Mortgage Loan or
an Eligible Nonconforming Mortgage Loan pursuant to the terms and standards set
forth herein and in the Warehouse Security Agreement, the Borrower shall
immediately prepay the principal of Advances in an aggregate amount equal to the
Collateral Value of such Mortgage Loan or Mortgage backed Security;

	if a Mortgage Loan or a Mortgage backed Security in
respect of which an Advance has been made hereunder is sold, the Borrower shall
on the date of settlement for such sale prepay the principal of Advances in an
aggregate amount equal to the Collateral Value of such Mortgage Loan or Mortgage
backed Security;

	if 21 calendar days shall have elapsed from the date a
Mortgage Loan is sent from the Lender to an Investor or the Custodian for an
Investor as provided in Section 4.04 and in the Warehouse Security Agreement and
such Mortgage Loan has neither been redelivered to the Lender nor purchased
pursuant to the letter of transmittal delivered therewith, the form of which
shall be that customarily used by the Lender or, if appropriate, the form
required by FNMA or FHLMC, the Borrower shall immediately prepay the principal
of Advances in an aggregate amount equal to the Collateral Value of such
Mortgage Loan;

	if 14 calendar days shall have elapsed from the date on
which the Borrower is requested by the Lender to obtain a substantially
corrected or completed copy of any material document in connection with any
Mortgage Loan or Mortgage backed Security and the same shall not have been
delivered to the Lender with the appropriate completion or correction, the
Borrower shall immediately prepay the principal of Advances in an aggregate
amount equal to the Collateral Value of such Mortgage Loan or Mortgage backed
Security;

	if (1) there shall be a default in the payment of
principal or interest by the obligor under (x) an Eligible Mortgage Loan in
respect of which an Advance has been made hereunder and such default shall be
continuing for 60 days or more or (y) a Mortgage backed Security in respect of
which an Advance has been made hereunder and such default shall be continuing
for 3 Business Days or more or (z) an Eligible Nonconforming Mortgage Loan in
respect of which an Advance has been made hereunder and such default shall be
continuing for 60 days or more, (2) an Insolvency Event shall occur in respect
of an obligor on any Mortgage Loan in respect of which an Advance has been made
hereunder or (3) foreclosure or similar proceedings shall be commenced in
respect of the premises which secure any Mortgage Loan in respect of which an
Advance has been made hereunder, the Borrower shall immediately prepay the
principal of Advances in an aggregate amount equal to the Collateral Value of
such Mortgage Loan or Mortgage backed Security;

	if the Mortgage Loan to be funded with the proceeds of
any Wet Advance is not funded on the date of such Wet Advance, the Borrower
shall immediately prepay the full principal amount of such Wet Advance;

	if the Mortgage Note in respect of any Mortgage Loan
securing a Wet Advance is not delivered to the Lender within five Business Days
following the date on which such Wet Advance was made, the Borrower shall
immediately prepay the full principal amount of such Wet Advance;

	if on any date the aggregate principal amount of Advances
outstanding at any time secured by Eligible Nonconforming Mortgage Loans exceeds
the Nonconforming Commitment then in effect, the Borrower shall immediately
prepay the principal of Advances in an aggregate amount equal to such
excess;

	if on any date the aggregate principal amount of Advances
secured by Credit A- Loans exceeds 100% of the Nonconforming Commitment, the
Borrower shall immediately prepay the principal of Advances secured by Credit A-
Loans in an aggregate amount equal to such excess;

	if on any date the aggregate principal amount of Advances
secured by Credit B Loans exceeds 100% of the Nonconforming Commitment, the
Borrower shall immediately prepay the principal of Advances secured by Credit B
Loans in an aggregate amount equal to such excess;

	if on any date the aggregate principal amount of Advances
secured by Credit C Loans exceeds 50% of the Nonconforming Commitment, the
Borrower shall immediately prepay the principal of Advances secured by Credit C
Loans in an aggregate amount equal to such excess; and

	if on any date the aggregate principal amount of Advances
secured by Credit D Loans exceeds 0% of the Nonconforming Commitment, the
Borrower shall immediately prepay the principal of Advances secured by Credit D
Loans in an aggregate amount equal to such excess.

	Release of Collateral; Substitution.

	So long as no Default or Event of Default has occurred
and is continuing or would result therefrom, upon the Borrower's request
therefor accompanied by a prepayment by the Borrower of Advances in an amount
sufficient to cause the amount of Advances outstanding to be less than or equal
to the Borrowing Base (calculated without reference to any Collateral which the
Borrower requests be released from the Lien granted pursuant to the Warehouse
Security Agreement) and a deposit by the Borrower of such amount as the Lender
shall reasonably designate as a reserve for application to any fees, accrued
interest or breakage costs payable with respect to the calendar month in which
such prepayment occurs, the Lender shall, within one Business Day after the
later of the receipt of such request or such prepayment and deposit, release
from the Lien granted pursuant to the Warehouse Security Agreement and deliver
to the Borrower in accordance with the terms of the Warehouse Security Agreement
(i) the Collateral corresponding to such Mortgage Loan(s) or Mortgage backed
Securit(ies) and (ii) the Collateral Documents pertaining thereto.

	So long as no Default or Event of Default has occurred
and is continuing in lieu of any required pre-payment of principal pursuant to
Section 4.02, the Borrower may, subject to the terms and conditions hereof and
the prior consent of the Lender, substitute and pledge additional Eligible
Mortgage Loans and/or Eligible Nonconforming Mortgage Loans (together with all
required Collateral Documents with respect thereto) having an aggregate
Collateral Value in an amount such that immediately after giving effect to such
substitution or addition, such prepayment is no longer required.

	Sale of Collateral to Investors.

	The Lender shall arrange, in accordance with the
provisions of the Warehouse Security Agreement, for the delivery of Mortgage
Loans pledged to the Lender to an Investor (or such Investor's Custodian)
pursuant to a Purchase Commitment for examination and purchase thereof by such
Investor; provided, however, that prior thereto the Lender shall have received
from the Borrower one Business Day's prior written notice describing the
Mortgage Loan(s) to be delivered and the shipping or wiring instructions
therefor, such notice executed by an authorized employee of the Borrower and
identifying the Investor and the price which such Investor has agreed to pay for
such Collateral and/or the Mortgage backed Security that is to be issued against
the delivery and release of such Collateral.

	The Lender shall release Collateral consisting of
Mortgage-backed Securities to the Investor under the related Purchase Commitment
on the settlement date specified in such Purchase Commitment by book-entry
transfer of such Mortgage-backed Securities to the account of such Investor
against the wire transfer to the account of the Lender of the full purchase
price specified in such Purchase Commitment; provided that (i) the Lender
shall have received from the Investor or the Borrower appropriate instructions
with respect to such delivery, transfer and payment and (ii) the Borrower shall
have made all deposits (if any) required in connection therewith pursuant to
Section 4.04(c) below. 

	The Borrower shall make a deposit in immediately
available funds into the Warehouse Payment Account by 4:00 p.m. E.S.T. on the
Business Day on which the release of the Lender's security interest in such
Mortgage Loan or Mortgage backed Securities is scheduled to occur pursuant to
the purchase by an Investor under a Purchase Commitment, in an amount equal to
the amount by which the aggregate amount of Advances outstanding exceeds the
Borrowing Base (calculated without reference to any such Mortgage Loan or
Mortgage backed Security).

	Each delivery of Collateral pursuant to this Section 4.04
shall be accompanied by a bailee letter in accordance with the requirements of
the Warehouse Security Agreement. All payments in respect of such Collateral so
purchased shall not be deemed received by the Lender until such funds constitute
"immediately available" funds in the Warehouse Payment Account or such Mortgage
backed Securities have been credited to the account of the Lender. For purposes
hereof, confirmation of receipt of wired funds shall constitute "immediately
available" funds.

	In the event that the Borrower has entered into an
agreement which provides for the sale by the Borrower to an Investor of the
rights to service any Mortgage Loan (which sale is separate from the sale of
such Mortgage Loan) pledged to the Lender pursuant to the terms of this
Agreement and the Warehouse Security Agreement, the Borrower shall provide such
Investor with written notice (in a form satisfactory to the Lender) that the
payment for such servicing rights shall be made directly to the Lender for the
account of the Lender.

	The Borrower shall deliver to the Lender, on or prior to
10:30 a.m. on the Business Day following receipt by the Lender of payment from
an Investor for Mortgage Loans (or the right to service Mortgage Loans) or
Mortgage backed Securities, notice designating the Mortgage Loans or Mortgage
backed Securities to which such payment applies. An amount equal to the funds
transferred to the Lender in respect of Mortgage Loans (or the right to service
Mortgage Loans) or Mortgage backed Securities purchased by an Investor (whether
such funds were transferred by the Borrower pursuant to Section 4.04(c) or by
the Investor pursuant to Sections 4.04(b), 4.04(d) or 4.04(e)) shall be applied
by the Lender as a prepayment of Advances.

	Method and Place of Payment. 

Except as otherwise specifically provided herein, all
payments under this Agreement and the Note shall be made to the Lender for the
account of the Lender not later than 2:00 p.m. E.S.T. on the date when due and
shall be made in immediately available funds for deposit to the Warehouse
Payment Account. Any payment received after 2:00 p.m. E.S.T. on any Business Day
shall be treated as being received on the next succeeding Business Day. Whenever
any payment to be made hereunder or under the Note shall be stated to be due on
a day which is not a Business Day, the due date thereof shall be extended to the
next succeeding Business Day and, with respect to payments of principal,
interest, fees and penalties shall be payable at the rate otherwise applicable.
The Borrower hereby authorizes the Lender, with prior notice to the Borrower by
the Lender, to deduct from each Advance to be made hereunder, all amounts due
and owing to the Lender or Lender including interest, penalties, fees or
mandatory prepayments.

	Net Payments. 

All payments made by or on behalf of the Borrower hereunder
will be made without setoff, counter-claim or other defense.

	Conditions Precedent.

The obligation of the Lender to make each Advance to the
Borrower hereunder is subject, at the time of the making of each such Advance
(except as hereinafter indicated), to the satisfaction of the following
conditions: 

	Execution of Agreement; Note. 

On or prior to the Initial Borrowing Date, (i) the Effective
Date shall have occurred and (ii) there shall have been delivered to the Lender
the Note executed by the Borrower in the amount, maturity and as otherwise
provided herein.

	No Default; Representations and
Warranties. 

At the time of the making of each Advance and also after
giving effect thereto (i) there shall exist no Default or Event of Default, and
(ii) all representations and warranties contained herein and in the other Credit
Documents shall be true and correct in all material respects with the same
effect as though such representations and warranties had been made on and as of
the date of such Advance.

	Request for Advance. 

Prior to the making of each Advance, the Lender shall have
received a Request for Advance with respect thereto meeting the requirements of
Section 2.04.

	Opinion of Counsel. 

On the Initial Borrowing Date, the Lender shall have received
from outside counsel for the Borrower (who shall be reasonably satisfactory to
the Lender) an opinion addressed to the Lender and dated the Initial Borrowing
Date covering the matters set forth in Exhibit E and such other matters incident
to the transactions contemplated herein as the Lender may reasonably
request.

	Diligence. 

On or prior to the Initial Borrowing Date, the Lender shall
have satisfactorily completed its due diligence review of the Borrower's
operations, business, financial condition and underwriting and origination of
Mortgage Loans.

	Corporate Documents; Proceedings.

	On the Initial Borrowing Date, the Lender shall have
received a certificate, dated the Initial Borrowing Date, signed by the
President or any Vice President of the Borrower, and attested to by the
Secretary or any Assistant Secretary of the Borrower, substantially in the form
of Exhibit F-1 and with appropriate insertions, together with copies of the
Certificate of Incorporation and By-Laws of the Borrower, the resolutions of the
Borrower referred to in such certificate and a good-standing certificate from
the Secretary of State of the jurisdiction of incorporation of the
Borrower.

	All corporate and legal proceedings and all instruments
and agreements in connection with the transactions contemplated in this
Agreement and the other Credit Documents shall be reasonably satisfactory in
form and substance to the Lender, and the Lender shall have received all
information and copies of all documents and papers, including records of
corporate proceedings and governmental approvals, if any, which the Lender
reasonably may have requested in connection therewith, such documents and papers
where appropriate to be certified by proper corporate or governmental
authorities.

	Financial Statements. 

On or prior to the Initial Borrowing Date, the Lender shall
have received (i) the consolidated and consolidating balance sheets of the
Borrower and its Consolidated Subsidiaries for each of the three fiscal years
most recently ended and the related statements of income and retained earnings
and statements of cash flows of the Borrower and its Consolidated Subsidiaries
for each of such three fiscal years, in each case certified by an independent
certified public accountant reasonably acceptable to the Lender and prepared in
accordance with GAAP consistently applied, together with any "management
letters" detailing any "material weaknesses in internal controls" (as defined by
the Financial Accounting Standards Board) noted by such accountants for such
period and (ii) copies of any uniform single audit reports in respect of the
Borrower required or requested by FNMA or FHLMC, any audits or financial reports
in respect of the Borrower completed or requested by HUD, GNMA, FNMA, FHLMC or
any other governmental agency or Investor and any Mortgage Bankers' Reporting
Forms prepared by the Borrower, in each case during the three years preceding
the date hereof.

	Mandatory Prepayment. 

After giving effect to the proposed Advance, no prepayment
would be required pursuant to Section 4.02.

	Warehouse Security Agreement. 

The Borrower shall have duly authorized, executed and
delivered a Warehouse Security Agreement substantially in the form of Exhibit I
(as modified, supplemented or amended from time to time, the "Warehouse Security
Agreement") covering all of the Borrower's present and future Collateral,
together with:

	acknowledgment copies of proper financing statements
(Form UCC-1) duly filed under the UCC of each jurisdiction as may be necessary
or, in the opinion of the Lender, desirable to perfect the security interests
purported to be created by the Warehouse Security Agreement;

	certified copies of "Requests for Information or Copies"
(Form UCC-11), or equivalent reports, listing the financing statements referred
to in clause (a) above and all other effective financing statements that name
the Borrower as debtor and that are filed in the jurisdictions referred to in
said clause (a), together with copies of such other financing statements (none
of which shall cover the Collateral, except to the extent evidencing Liens
permitted pursuant to Section 8.01); and

	evidence of the completion of all other recordings and
filings of, or with respect to, the Warehouse Security Agreement and the taking
of all other actions as may be necessary or, in the opinion of the Lender,
desirable to perfect the security interests purported to be created by the
Warehouse Security Agreement.

	No Adverse Change. 

Since April 30, 1998 there shall have been no material
adverse change in the operations, business, property, assets or financial
condition or prospects of the Borrower.

	Insurance. 

On or prior to the Initial Borrowing Date, the Lender shall
have received from the Borrower, a copy of a fidelity bond and policy of
insurance containing errors and omissions coverage and such other insurance as
the Lender shall require, each of which policies, where applicable, shall be in
such form, with such companies and in such amounts as are in accordance with the
Lender's requirements and shall name the Lender as loss payees and certificate
holders.

	[Intentionally omitted]

	Delivery of the
Collateral. 

Prior to the making of an Advance, the Lender shall have
received (a) if such Advance is to be made in respect of Mortgage Loans and is
not to be a Wet Advance, the Collateral Documents relating to the Mortgage Loans
pledged to secure such Advance; (b) if such Advance is to be a Wet Advance, a
duly executed assignment by the Borrower to the Lender of the related Mortgage
fully completed and in recordable form, a copy of the Purchase Commitment or the
Master Commitment, if applicable, and satisfactory confirmation that the
Collateral Documents relating thereto are to be delivered to an escrow agent,
closing agent or title company acceptable to the Lender with instructions that
such Collateral Documents are to be delivered directly to the Lender; or (c) if
such Advance is to be made in respect of Mortgage backed Securities, copies of
the applicable mortgage schedules and FNMA, FHLMC or GNMA delivery schedules,
the confirmed trade ticket and satisfactory confirmation of the Lender's
interest in such Mortgage backed Securities. 

	Fees. 

Prior to the making of an Advance, the Borrower shall have
paid all Fees then due and payable to the Lender.

	No Litigation. 

There shall be no judgment, order, injunction or other
restraint which shall prohibit or impose, and no litigation pending or
threatened against or affecting the Borrower or any of its Subsidiaries which,
in the opinion of the Lender, would prohibit or result in the imposition of
materially adverse conditions upon, the financing contemplated hereby, or
otherwise have a material adverse effect on the business, operations, property,
assets, condition (financial or otherwise) or prospects of the Borrower or any
of its Subsidiaries.

	Legal or Regulatory Proceedings.

On or prior to the Initial Borrowing Date, the Borrower shall
have delivered to the Lender certificates of the principal shareholders and
senior officers of the Borrower, in substantially the form of Exhibit F-2, with
respect to certain legal and regulatory proceedings relating to such
persons.

	[Intentionally omitted] 

	[Intentionally omitted] 

	[Intentionally omitted].

	[Intentionally omitted].

The acceptance of the benefits of each Advance shall
constitute a representation and warranty by the Borrower to the Lender that all
the conditions specified in Sections 5.02, 5.08, 5.10 and 5.15 exist as of that
time. All of the Note, certificates and other documents and papers referred to
in this Section 5, unless otherwise specified, shall be delivered to the Lender
at the Office for the account of the Lender and shall be reasonably satisfactory
in form and substance to the Lender.

	Representations, Warranties and
Agreements. 

In order to induce the Lender to enter into this Agreement
and to make the Advances, the Borrower makes the following representations,
warranties and agreements as of the Effective Date, all of which shall survive
the execution and delivery of this Agreement and the Note and the making of the
Advances (with the execution and delivery of this Agreement and the making of
each Advance thereafter being deemed to constitute a representation and warranty
that the matters as specified in this Section 6 are true and correct in all
respects on and as of the date hereof and as of the date of such Advance, unless
stated to relate to a specific earlier date):

	Corporate Status. 

Each of the Borrower and its Subsidiaries (i) is a duly
organized and validly existing corporation in good standing under the laws of
the jurisdiction of its incorporation, (ii) has the power and authority to own
its property and assets and to transact the business in which it is engaged and
(iii) is duly qualified as a foreign corporation and in good standing in each
jurisdiction where the ownership, leasing or operation of property or the
conduct of its business requires such qualification, except where the failure to
be so qualified would not have a material adverse effect on the business and
operations of the Borrower.

	Corporate Power and Authority. 

The Borrower has the corporate power to execute, deliver and
perform the terms and provisions of each of the Credit Documents and has taken
all necessary corporate action to authorize the execution, delivery and
performance by it of each of such Credit Documents. The Borrower has duly
executed and delivered each of the Credit Documents, and each of such Credit
Documents constitutes its legal, valid and binding obligation enforceable in
accordance with its terms, subject to the effect of applicable bankruptcy and
other similar laws affecting the rights of creditors generally and the effect of
equitable principles whether applied in an action at law or a suit in
equity.

	No Violation. 

Neither the execution, delivery or performance by the
Borrower of the Credit Documents, nor compliance by it with the terms and
provisions thereof, (i) will contravene any provision of any law, statute, rule
or regulation or any order, writ, injunction or decree of any court or
governmental instrumentality, (ii) will conflict or be inconsistent with or
result in any breach of any of the material terms, covenants, conditions or
provisions of, or constitute a material default under, or result in the creation
or imposition of (or the obligation to create or impose) any Lien other than a
Lien permitted pursuant to Section 8.01 upon any of the property or assets of
the Borrower pursuant to the terms of any indenture, mortgage, deed of trust,
credit agreement, loan agreement or any other agreement, contract or instrument
to which the Borrower is a party or by which it or any of its property or assets
is bound or to which it may be subject or (iii) will violate any provision of
the certificate of incorporation or by-laws of the Borrower.

	Governmental Approvals. 

No order, consent, approval, license, authorization or
validation of, or filing, recording or registration with (except as have been
obtained or made prior to the Effective Date), or exemption by, any governmental
or public body or authority, or any subdivision thereof, is required to
authorize, or is required in connection with, (i) the execution, delivery and
performance of any Credit Document or (ii) the legality, validity, binding
effect or enforceability of any such Credit Document.

	Financial Statements; Financial Condition; Undisclosed
Liabilities; etc. 

	The consolidated and consolidating balance sheet of the
Borrower and its Consolidated Subsidiaries and the related consolidated and
consolidating statements of income and retained earnings and statements of cash
flows of the Borrower and its Consolidated Subsidiaries furnished to the Lender
in accordance with Section 5.07 hereof present fairly the consolidated and
consolidating financial condition of the Borrower and its Consolidated
Subsidiaries at the dates of such balance sheets and the consolidated and
consolidating results of the operations of the Borrower and its Consolidated
Subsidiaries for the fiscal periods covered by such statements of income and
retained earnings and statements of cash flows. All such financial statements
have been prepared in accordance with GAAP consistently applied. Since April 30, 1998 there has not been any material adverse
change in the business, operations, property, assets, condition (financial or
otherwise) or prospects of the Borrower.

	Except as fully reflected on the financial statements
referred to in Section 6.05(a), there will be as of the Effective Date no
liabilities or obligations with respect to the Borrower or any of its
Subsidiaries of any nature whatsoever (whether absolute, accrued, contingent or
otherwise and whether or not due) which, either individually or in the
aggregate, would be material to the Borrower or to the Borrower and its
Subsidiaries taken as a whole. 

	Litigation. 

There are no actions, suits or proceedings pending or
threatened (i) with respect to any Credit Document or (ii) that could materially
and adversely affect the business, operations, property, assets, condition
(financial or otherwise) or prospects of the Borrower.

	True and Complete Disclosure. 

All factual information (taken as a whole) heretofore or
contemporaneously furnished by or on behalf of the Borrower to the Lender
(including, without limitation, all information contained in the Credit
Documents) for purposes of or in connection with this Agreement, the Warehouse
Security Agreement or any transaction contemplated herein or therein is, and all
other such factual information (taken as a whole) hereafter furnished by or on
behalf of the Borrower to the Lender will be, true and accurate in all material
respects on the date furnished to the Lender and not incomplete by omitting to
state any fact necessary to make such information (taken as a whole) not
misleading in any material respect at such time in light of the circumstances
under which such information was provided.

	Use of Proceeds; Margin Regulations.

All proceeds of each Advance will be used by the Borrower for
the financing of the Borrower's mortgage lending business; provided that no part
of the proceeds of any Advance will be used by the Borrower to purchase or carry
any Margin Stock or to extend credit to others for the purpose of purchasing or
carrying any Margin Stock, and provided further, that no part of the proceeds of
any Advance will be used by the Borrower to repay any indebtedness owed to any
lender including, any Affiliates of Lender. Neither the making of any Advance
nor the use of the proceeds thereof will violate or be inconsistent with the
provisions of Regulation G, T, U or X of the Board of Governors of the Federal
Reserve System.

	Tax Returns and Payments. 

The Borrower and each of its Subsidiaries has filed all tax
returns required to be filed by it and has paid all income taxes payable by it
which have become due pursuant to such tax returns and all other taxes and
assessments payable by it which have become due, other than those not yet
delinquent and except for those contested in good faith and for which adequate
reserves have been established. The Borrower and each of its Subsidiaries has
paid, or has provided adequate reserves (in the good faith judgment of the
management of the Borrower or such Subsidiary, as the case may be) for the
payment of, all federal, state and foreign income taxes applicable for all prior
fiscal years and for the current fiscal year to the date hereof.

	Compliance with ERISA. 

Each Plan is in substantial compliance with ERISA and the
Code; no Reportable Event has occurred with respect to a Plan; no Plan is
insolvent or in reorganization, no Plan has an Unfunded Current Liability, and
no Plan has an accumulated or waived funding deficiency or permitted decreases
in its funding standard account within the meaning of Section 412 of the Code;
neither the Borrower nor any ERISA Affiliate of the Borrower has incurred any
material liability to or on account of a Plan pursuant to Section 409, 502(i),
502(1), 515, 4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or Section 4971 or
4975 of the Code or expects to incur any liability under any of the foregoing
sections on account of the termination of, participation in or contributions to
any such Plan; no proceedings have been instituted to terminate any Plan; no
condition exists which presents a material risk to the Borrower or any ERISA
Affiliate of incurring a liability to or on account of a Plan pursuant to the
foregoing provisions of ERISA and the Code; no Lien imposed under the Code or
ERISA on the assets of the Borrower exists or is likely to arise on account of
any Plan; and the Borrower may terminate contributions to any other employee
benefit plans maintained by it without incurring any material liability to any
Person interested therein.

	Capitalization. 

Set forth on Schedule 6.11 is an accurate and complete list
of all Persons who own 5% or more of the voting stock of the Borrower, together
with the percentage ownership of each. All outstanding shares of the Borrower's
capital stock have been duly and validly issued, are fully paid and non-
assessable. The Borrower does not have outstanding any securities convertible
into or exchangeable for its capital stock or outstanding any rights to
subscribe for or to purchase, or any options for the purchase of, or any
agreements providing for the issuance (contingent or otherwise) of, or any
calls, commitments or claims of any character relating to, its capital stock
except as set forth on Schedule 6.11 hereto. 

	Subsidiaries. 

Set forth on Schedule 6.12 is an accurate and complete list
of all Subsidiaries of the Borrower and the percentage ownership by the Borrower
in each such Subsidiary on the Effective Date, together with a brief description
of the business of each such Subsidiary. 

	Compliance with Statutes, etc. 

The Borrower and each of its Subsidiaries is in compliance
with all applicable statutes, regulations and orders of, and all applicable
restrictions imposed by, all governmental bodies, domestic or foreign, in
respect of the conduct of its business and the ownership of its property,
including, without limitation, any state licensing laws, except such
noncompliances as would not (i) in the aggregate, have a material adverse effect
on the business, operations, property, assets, condition (financial or
otherwise) or prospects of the Borrower and (ii) affect in any respect the
validity or enforceability of any Credit Document or the Lender's rights in the
Collateral.

	Investment Company Act. 

Neither the Borrower nor any Subsidiary of the Borrower is an
"investment company" within the meaning of the Investment Company Act of 1940,
as amended.

	No Burdensome Agreement. 

Neither the Borrower nor any Subsidiary is a party to any
indenture, loan or credit agreement or any lease or other agreement or
instrument or subject to any charter or corporate restriction which by its terms
would have a material adverse effect on the business, condition (financial or
otherwise), operations or properties of the Borrower or such Subsidiary or on
the ability of the Borrower to carry out its obligations under the Note or the
other Credit Documents to which it is a party.

	Security Interests. 

The Warehouse Security Agreement creates, as security for the
Obligations, valid and enforceable security interests in and Liens on all of the
Collateral in favor of the Lender on behalf of the Lender which are perfected
and superior and prior to the rights of all third Persons and subject to no
other Liens (other than Liens permitted pursuant to Section 8.01). The Borrower
has, or will have at the time of pledge thereof, good and marketable title to
all of the Collateral, free and clear of all Liens except those described in the
preceding sentence.

	Registration. 

The Borrower currently is, and will be at all times at which
any Advance is outstanding hereunder, licensed, registered, approved, qualified
or otherwise authorized in good standing to the extent required under applicable
law, as a mortgage banker, mortgage broker, real estate broker, servicer of
mortgage loans or otherwise in each jurisdiction in which the conduct of its
business requires such licensing, registration, approval, qualification or other
authorization, including, without limitation, as applicable, as a (i) GNMA
approved seller and/or servicer of Mortgage Loans and issuer of Mortgage backed
Securities guaranteed by GNMA, (ii) FNMA approved seller and/or servicer of
Mortgage Loans, eligible to originate, purchase, hold, sell and service Mortgage
Loans to be sold to FNMA, (iii) FHLMC approved seller and/or servicer of
Mortgage Loans, eligible to originate, purchase, hold, sell and service Mortgage
Loans to be sold to FHLMC, (iv) lender in good standing under the VA loan
guaranty program eligible to originate, purchase, hold, sell and service VA
Loans, (v) HUD approved lender, eligible to originate, purchase, hold, sell and
service FHA Loans and (vi) licensed mortgage banker in each state in which it
originates Mortgage Loans. To the best of the Borrower's knowledge, all
appraisers providing services in connection with the origination of Mortgage
Loans by the Borrower have all licenses, registrations, approvals and
qualifications required by all applicable laws or regulations.

	Representations Relating to the Mortgage
Loans. 

	At all times during which a Mortgage Loan is pledged as
Collateral for Advances hereunder, such Mortgage Loan will (i) be an FHA Loan, a
VA Loan, a Conforming Loan, a Jumbo Loan, a State Loan, a Credit A- Loan, a
Credit B Loan, a Credit C Loan or a Credit D Loan; (ii) be an Eligible Mortgage
Loan or an Eligible Nonconforming Mortgage Loan and be free of any default and
the Borrower will have had no notice of any event which has occurred which may,
with the passage of time or the giving of notice, or both, become a default;
(iii) comply with the terms of this Agreement and with the relevant Purchase
Commitment and/or Master Commitment, if any; (iv) be a legal, valid and binding
obligation of the mortgagor and the mortgagee thereunder enforceable in
accordance with its terms and subject to no offset, defense or counterclaim,
obligating such mortgagor to make the payments specified therein, and each FHA
Loan and each VA Loan will be fully eligible for, and the Borrower will have
complied with all applicable requirements of law, rule or regulation in respect
of, FHA insurance or VA guaranty, respectively; (v) if such Mortgage Loan is an
Eligible Nonconforming Mortgage Loan, be subject to a Purchase Commitment, or if
such Mortgage Loan is an Eligible Mortgage Loan, be subject to a Purchase
Commitment or Hedging Contract or, if it is a Mortgage Loan that bears interest
at an adjustable rate, a Master Commitment which Purchase Commitment or Master
Commitment is a legal, valid and binding obligation of the Investor party
thereto, is enforceable against such Investor in accordance with its terms
(subject to the effect of applicable bankruptcy and other similar laws affecting
the rights of creditors generally and the effect of equitable principles whether
applied in an action at law or a suit in equity), and, except as is otherwise
notified in writing by the Borrower to the Lender, permits the assignment
thereof to the Lender; (vi) be owned by the Borrower and be subject to no Lien
or claim whatsoever, either legal or equitable, other than that granted to the
Lender; (vii) be fully disbursed, the final disbursement to the mortgagor in
connection therewith having been made no more than 30 days prior to the date of
pledge if such disbursement was made by the Borrower (unless such Mortgage Loan
is delivered as Collateral securing the initial Advance made to the Borrower
hereunder); (viii) not be modified (except as to correction of clerical or
scrivener errors), amended, superseded or otherwise subject to any other
agreement or contract of any kind with the relevant mortgagor under such
Mortgage Loan except to the extent such amendment, modification or other
agreement or contract has been disclosed in writing to the Lender by the
Borrower at the time of the pledge and does not affect the salability of such
Mortgage Loan pursuant to any applicable Master Commitment or Purchase
Commitment; (ix) be a valid first or second lien on the mortgaged premises
subject thereto; (x) if required by the Investor, have a title insurance policy
or binder, in ALTA form satisfactory to the Lender insuring the priority of the
Borrower's first or second lien therein subject only to (1) the lien of the
related first mortgage, if any, (2) the lien of current real property taxes and
assessments, (3) covenants, conditions and restrictions, rights of way,
easements and other matters of public record as of the date of recording of the
related mortgage or deed of trust, such exceptions appearing of record being
acceptable to mortgage lending institutions generally in the area wherein the
property subject thereto is located and (4) other matters to which like
properties are commonly subject which do not materially interfere with the
benefits of the security intended to be provided by the related mortgage or deed
of trust and (xi) not have been selected for pledge hereunder utilizing
procedures, other than those necessary to comply with the representations and
warranties set forth herein, which are adverse to the interests of the
Lender.

	At the time of the pledge of each Mortgage Loan, the
Borrower will have received with respect to each such Mortgage Loan (i) a hazard
insurance policy with a standard mortgagee clause in a form satisfactory to the
Lender and with extended coverage in an amount which is at least equal to the
maximum insurable value of the improvements securing such Mortgage Loan from
time to time or the principal balance owing on such Mortgage Loan, whichever is
less and (ii) a policy, or other satisfactory evidence, of flood insurance or
satisfactory documentation to demonstrate that the mortgaged premises are not
located in a special flood hazard area. Such documentation will be retained in
the Borrower's files relating to such Mortgage Loan.

	With respect to each Mortgage Loan pledged to the Lender,
the Borrower has fully complied with, and will fully comply with, or the
original mortgagee thereof has fully complied with and will fully comply with,
(A) all applicable state and federal laws and regulations, including but not
limited to (i) the Real Estate Settlement Procedures Act of 1974, (ii) the Equal
Credit Opportunity Act, (iii) the Federal Truth in Lending Act and Regulation Z
of the Board of Governors of the Federal Reserve System, (iv) any laws requiring
persons providing appraisals of property values to be properly licensed, and (v)
all other usury, disclosure, consumer credit protection or truth-in-lending laws
which may apply, and in each such case with all regulations promulgated in
connection therewith as the same may be from time to time amended and will
maintain sufficient documentary evidence in its file to substantiate such
compliance (including, without limitation, delivery of all necessary disclosure
statements) and (B) all of the terms and provisions of such Mortgage Loan and of
any contractual escrow arrangements applicable thereto.

	Representations Relating to the Mortgage backed
Securities. 

At the time a Mortgage backed Security is pledged as
Collateral, such Mortgage backed Security will be (i) an Eligible Mortgage Loan
free of any default, (ii) subject to a Purchase Commitment which is a legal,
valid and binding obligation of the Investor party thereto, is enforceable
against such Investor in accordance with its terms, permits the assignment
thereof to the Lender and may be enforced against such Investor by the Lender,
(iii) comply with all of the terms of such Purchase Commitment, (iv) a legal,
valid and binding obligation of the issuer thereof enforceable in accordance
with its terms, and (v) subject to no Lien or claim whatsoever, either legal or
equitable, other than that granted to the Lender and the interest of the
Investor under the related Purchase Commitment.

	Insurance. 

The Borrower has blanket fidelity bond coverage and errors
and omissions insurance coverage in such form, with such companies and in such
amounts as are in accordance with standards and requirements satisfactory to the
applicable Investor and Lender.

	Title to Property. 

The Borrower has good and marketable title to all of its
property, the value of which is included in the financial statements delivered
pursuant hereto, subject to no Liens, encumbrances or claims other than those
disclosed on such financial statements.

	No Recourse Sales. 

No commitment or other contractual arrangement pursuant to
which the Borrower has sold or currently has a right to sell Mortgage Loans to a
third party provides for any recourse to the Borrower except in the event of a
breach of representations or warranties made in connection with such sale.

	Fictitious Names. 

Neither the Borrower nor any Subsidiary of the Borrower
operates or does business under any assumed, trade or fictitious name.

	Affirmative Covenants.

The Borrower covenants and agrees that as of the Effective
Date, and thereafter for so long as this Agreement is in effect and until the
Commitment has terminated, the Note is no longer outstanding and the Advances,
together with interest, Fees and all other Obligations, are paid in full:

	Information Covenants. 

The Borrower will furnish to the Lender (unless otherwise
indicated):

	Monthly Financial Statements. Within 30 days after
the close of each monthly accounting period of the Borrower, the consolidated
statements of financial condition of the Borrower and its Consolidated
Subsidiaries as at the end of such period, and the related consolidated
statements of income and retained earnings and statements of cash flows for such
period and for the elapsed portion of the fiscal year ended with the last day of
such period, setting forth comparative figures for the related periods in the
prior fiscal year, all of which shall be in form and substance satisfactory to
the Lender and certified as to fairness of presentation by the Chief Financial
Officer of the Borrower, subject to normal year-end audit adjustments and
accompanied by a certificate from such financial officer to the effect that no
Default or Event of Default has occurred and is continuing, and a statement as
to the beneficial ownership of all of the issued and outstanding capital stock
of the Borrower as at the end of such period, certified as accurate by such
financial officer.

	Annual Financial Statements. Within 90 days after
the close of each fiscal year of the Borrower, the consolidated and
consolidating statements of financial condition of the Borrower and its
Consolidated Subsidiaries as at the end of such fiscal year, and the related
consolidated and consolidating statements of income and retained earnings and
statements of cash flows for such fiscal year, in form and substance
satisfactory to the Lender and setting forth comparative figures for the
preceding fiscal year and certified, in the case of the consolidated financial
statements, by independent certified public accountants reasonably acceptable to
the Lender, together with a report of such accounting firm stating that its
regular audit of the financial statements of the Borrower was conducted in
accordance with generally accepted auditing standards.

	Management Letters. Promptly, and in no event
later than five days, after receipt by the Borrower thereof, a copy of any
"management letter" received by the Borrower from its certified public
accountants detailing any "material weaknesses in internal control" noted by
such accountants (as defined by the Financial Accounting Standards
Board).

	Officer's Certificates. At the time of the
delivery of the financial statements provided for in Section 7.01(a) and (b), a
certificate of the Chief Financial Officer of the Borrower to the effect that,
to the best of his knowledge, no Default or Event of Default has occurred and is
continuing or, if any Default or Event of Default has occurred and is
continuing, specifying the nature and extent thereof and any actions taken or
proposed to be taken to cure any such Default or Event of Default, which
certificate shall set forth the calculations required to establish whether the
Borrower was in compliance with the provisions of Sections 8.08 and 8.09, at the
end of such month or fiscal year, as the case may be. 

	Notice of Default. Promptly (and in no event later
than five days following the occurrence thereof), notice of (i) the occurrence
of any event which constitutes a Default or Event of Default, detailing the
nature of such Default or Event of Default and any actions taken or proposed to
be taken to cure such Default or Event of Default, (ii) the commencement of any
action, suit or proceeding against the Borrower or any of its Subsidiaries
before any court, arbitrator or governmental department, commission, board,
bureau, agency or instrumentality which (A) could result in liability or loss of
$250,000 or more, in excess of any applicable insurance coverage to the Borrower
or such Subsidiary, as the case may be, or (B) would otherwise materially
adversely affect the management or the condition or operations (financial or
otherwise) of the Borrower or any of its Subsidiaries, (iii) any change in any
of the President, Chief Executive Officer, Chief Financial Officer or Director
of Mortgage Banking Operations of the Borrower, or (iv) any loss or any
threatened loss known to the Borrower of any authorization, qualification,
license or permit issued by any governmental or regulatory authority to the
Borrower or any of its Subsidiaries the loss of which could have a material
adverse effect upon the financial condition or business of the Borrower or any
of its Subsidiaries.

	Reports Relating to Collateral. In respect of the
Collateral, bi-weekly or more frequently as Lender may, from time to time,
request a position valuation report from the Borrower in a form acceptable to
the Lender (the "Position Valuation Report"). 

	Monthly Servicing Reports. Within 30 days after
the close of each calendar month in which the Borrower owns a Servicing
Portfolio, a consolidated report of the Borrower providing a summary, for all
Mortgage Loans the servicing rights to which are owned by the Borrower,
regardless of whether such Mortgage Loans are pledged to the Lender, of (i) the
entities that own such Mortgage Loans, (ii) the original terms of such Mortgage
Loans and whether such Mortgage Loans bear interest at a fixed rate or an
adjustable rate, (iii) the weighted average interest rate and the weighted
average net servicing fee with respect to such Mortgage Loans, (iv) whether any
such Mortgage Loans were sold by the Borrower with recourse and the nature of
such recourse, (v) which of such Mortgage Loans (A) are current and in good
standing, (B) are more than 30, 60 or 90 days past due, respectively, (C) are
the subject of pending litigation, bankruptcy or foreclosure proceedings, and
(D) have been converted (through foreclosure or other proceedings in lieu
thereof) by the Borrower into real estate owned by the Borrower, and (vi) any
reserves established by the Borrower for losses in respect of delinquent
Mortgage Loans or real estate owned by the Borrower. 

	Other Reports and Filings. Promptly, and in any
event within 10 days following the filing thereof, copies of all financial
information, proxy materials and other information and reports, if any, which
the Borrower shall file with the Securities and Exchange Commission or any
governmental agencies substituted therefor.

	Servicing Transactions. (i) Promptly, and in any
event within 10 days following the execution thereof, copies of any agreements
executed by the Borrower which provide for the sale by the Borrower to an
Investor of the rights to service any Mortgage Loan, which sale is separate from
the sale of the related Mortgage Loan, pledged to the Lender pursuant to the
terms of this Agreement and the Warehouse Security Agreement and (ii) written
notice not less than 10 days prior to any purchase or sale of mortgage servicing
rights or any other transaction which would result in greater than a 10 percent
increase or decrease in the aggregate unpaid principal balance of all Mortgage
Loans included in the Servicing Portfolio of the Borrower.

	Leases. Written notice not less than 10 days prior
to any agreement to rent or lease any real or personal property which would
result in aggregate payments thereunder by the Borrower (including, without
limitation, any property taxes paid as additional rent or lease payments) in
excess of $250,000.

	Capital Expenditures. Written notice not less than
10 days prior to any agreement by the Borrower pursuant to which the Borrower
intends to make any expenditure for fixed or capital assets (including, without
limitation, expenditures for maintenance and repairs which should be capitalized
in accordance with GAAP and including capitalized lease obligations) which will
exceed $250,000.

	[Intentionally omitted]

	Commitment Default. Notice within two (2) Business
Days of any default under, or of the termination, invalidation or cancellation
of, any Purchase Commitment or Master Commitment relating to any Mortgage Loan
or Mortgage backed Security constituting Collateral.

	Collateral Servicing Report. Within five (5)
Business Days after the end of each calendar month, a report detailing the
identities of the entities other than the Borrower, if any, servicing any
Mortgage Loans pledged as Collateral hereunder or which secure a Mortgage backed
Security pledged as Collateral hereunder. 

	Other Information. Promptly, and in any event
within five (5) Business Days after the Borrower's receipt or filing thereof,
(i) copies of any notices or information given to or received from the holders
of any Indebtedness of the Borrower relating to any actual or alleged default,
demand for payment or acceleration of payment, or from the PBGC or the United
States Department of Labor in connection with any matter arising with respect to
ERISA, (ii) copies of all audits completed by HUD, GNMA, FNMA, FHLMC or any
other governmental agency or Investor with respect to the Borrower, (iii) all
Mortgage Bankers' Financial Reporting Form Statement of Condition (designated as
FHLMC Form 1055 and FNMA Form 1002, respectively, and any successor thereto or
replacement thereof) (the "Mortgage Bankers' Reporting Forms") filed by the
Borrower with FHLMC or FNMA, (iv) copies of any uniform single audit reports
required or requested by FNMA or FHLMC, (v) copies of any performance and
feedback reports received by the Borrower from an Investor, and (vi) such other
information or documents (financial or otherwise) as the Lender may reasonably
request.

	Credit Package Documents. Promptly upon the
written request by the Lender, to the extent available, each of the documents
listed in Schedule 7.01(p) (collectively, the "Credit Package Documents"), as
applicable.

	Books, Records and Inspections.

The Borrower will, and will cause each of its Subsidiaries
to, keep proper books of record and account in which full, true and correct
entries in conformity with GAAP and all requirements of law shall be made of all
dealings and transactions in relation to its business and activities. The
Borrower will, and will cause each of its Subsidiaries to, permit officers and
designated representatives of the Lender to visit and inspect any of the
properties of the Borrower or such Subsidiary, and to examine the books of
record and account of the Borrower or such Subsidiary and discuss the affairs,
finances and accounts of the Borrower or such Subsidiary with, and be advised as
to the same by, its and their officers, employees and independent accountants,
all at such reasonable times and intervals and to such extent as the Lender may
request. Any such inspection and/or examination may include an audit by the
Lender of the servicing of the Collateral and the Borrower's Servicing Portfolio
and such procedures as the Lender deems appropriate to confirm the reporting of
Mortgage Loan balances. 

	Maintenance of Property, Insurance.

The Borrower will, and will cause each of its Subsidiaries
to, (i) keep all property necessary for the operation of its business in good
working order and condition, (ii) except as otherwise provided in clause (iii)
below, maintain with financially sound and reputable insurance companies
insurance in at least such amounts and against at least such risks as are
customarily insured against by companies in the same or similar business, (iii)
maintain fidelity bond coverage and errors and omissions insurance coverage in
accordance with standards and requirements reasonably satisfactory to the
applicable Investor and Lender and (iv) furnish to the Lender, upon written
request, full information as to the insurance carried. The provisions of this
Section 7.03 shall be deemed to be supplemental to, but not duplicative of, the
provisions of any of the security documents that require the maintenance of
insurance.

	Corporate Franchises. 

The Borrower will, and will cause each of its Subsidiaries
to, do or cause to be done, all things necessary to preserve and keep in full
force and effect its existence and its material rights, franchises,
qualifications, licenses, permits and patents; provided, however, that nothing
in this Section 7.04 shall prevent the withdrawal by the Borrower or any of its
Subsidiaries of its qualification as a foreign corporation in any jurisdiction
where such withdrawal could not have a material adverse effect on the business,
operations, property, assets, condition (financial or otherwise) or prospects of
the Borrower or such Subsidiary.

	Compliance with Statutes, etc. 

The Borrower will, and will cause each of its Subsidiaries
and will use commercially reasonable efforts to cause each appraiser,
correspondent, broker or other service provider that participates with the
Borrower in the origination or servicing of Mortgage Loans to, comply with all
applicable statutes, regulations and orders of, and all applicable restrictions
imposed by, all governmental bodies, domestic or foreign, in respect of the
conduct of its business and the ownership of its property (including applicable
statutes, regulations, orders and restrictions relating to (1) licensing or
registration (as described in Section 6.17 hereof) and (2) environmental
standards and controls), except such noncompliances as could not (i) adversely
affect in any manner the legality, validity or enforceability of any Mortgage
Loan, Mortgage backed Security, Purchase Commitment or Hedging Contract or (ii)
in the aggregate, have a material adverse effect on the business, operations,
property, assets, condition (financial or otherwise) or prospects of the
Borrower or the Borrower and its Subsidiaries taken as a whole.

	ERISA. 

As soon as possible and, in any event, within ten (10) days
after the Borrower or any of its Subsidiaries or ERISA Affiliates knows or has
reason to know any of the following, the Borrower will deliver to the Lender a
certificate of the Chief Financial Officer of the Borrower setting forth details
as to such occurrence and such action, if any, which the Borrower, such
Subsidiary or such ERISA Affiliate is required or proposes to take, together
with any notices required or proposed to be given to or filed with or by the
Borrower, such Subsidiary, such ERISA Affiliate, the PBGC, a Plan participant or
the Plan administrator with respect thereto: that a Reportable Event has
occurred; that an accumulated funding deficiency has been incurred or an
application may be or has been made to the Secretary of the Treasury for a
waiver or modification of the minimum funding standard (including any required
installment payments) or an extension of any amortization period under Section
412 of the Code with respect to a Plan; that a Plan has been or may be
terminated, reorganized, partitioned or declared insolvent under Title IV of
ERISA; that a Plan has an Unfunded Current Liability giving rise to a Lien under
ERISA; that proceedings may be or have been instituted to terminate a Plan; that
a proceeding has been instituted pursuant to Section 515 of ERISA to collect a
delinquent contribution to a Plan; or that the Borrower, any of its Subsidiaries
or ERISA Affiliates will or may incur any liability (including any contingent or
secondary liability) to or on account of the termination of or withdrawal from a
Plan under Section 4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or with respect
to a Plan under Section 4971 or 4975 of the Code or Section 409, 502(i) or
502(1) of ERISA. The Borrower will deliver to the Lender a complete copy of the
annual report (Form 5500) of each Plan required to be filed with the Internal
Revenue Service. In addition to any certificates or notices delivered to the
Lender pursuant to the first sentence hereof, copies of annual reports and any
other notices received by the Borrower or any of its Subsidiaries required to be
delivered to the Lender hereunder shall be delivered to the Lender no later than
ten (10) days after the later of the date such report or notice has been filed
with the Internal Revenue Service or the PBGC, given to Plan participants or
received by the Borrower or such Subsidiary.

	Performance of Obligations. 

The Borrower will, and will cause each of its Subsidiaries
to, perform all of its obligations under the terms of each mortgage, indenture,
security agreement and other debt instrument by which it is bound, except such
non-performances as could not in the aggregate, have a material adverse effect
on the business, operations, property, assets, condition (financial or
otherwise) or prospects of the Borrower or of the Borrower and its Subsidiaries
taken as a whole.

	Mortgage Loans. 

	The Borrower will not modify or waive any term of any
pledged Mortgage Loan or release any security or obligor, if as a result thereof
such Mortgage Loan would become, nor cause, through any activity or inactivity,
a Mortgage Loan to become, ineligible for FHA insurance or VA guaranty, if
applicable, or for purchase in accordance with the relevant Master Commitment or
Purchase Commitment. The Borrower will notify the Lender of (i) any payment
default in respect of any pledged Collateral which has continued for 30 days, 60
days or 90 days, respectively, (ii) the occurrence of an Insolvency Event of
which the Borrower has knowledge in respect of an obligor on any Mortgage Loan
pledged as Collateral, (iii) the commencement of foreclosure or similar
proceedings in respect of the premises which secure any Mortgage Loan pledged as
Collateral and (iv) any other material default in any other term of any pledged
Collateral, such notice to be delivered not later than three (3) Business Days
following the occurrence thereof in the case of an event specified in clauses
(i) or (iii) and promptly upon the Borrower's receiving notice or otherwise
becoming aware thereof in the case of an event specified in clauses (ii) or
(iv).

	All FHA Loans, and VA Loans will comply in all respects
with all applicable requirements for purchase under the applicable GNMA or FNMA
standard form of selling contract for FHA insured and VA guaranteed loans and
any supplement thereto then in effect. All Conforming Mortgage Loans will comply
in all respects with all applicable requirements for purchase under the
applicable FNMA or FHLMC selling contract for Mortgage Loans of such type and
any supplement thereto then in effect. All Jumbo Loans will comply in all
respects with all applicable requirements for purchase under any Purchase
Commitment relating thereto. All State Loans will comply in all respects with
all applicable requirements for purchase by the state agency or instrumentality
that issued a Purchase Commitment in respect thereof. All Eligible Nonconforming
Mortgage Loans will comply in all respects with all applicable requirements for
purchase under any Purchase Commitment relating thereto. All Mortgage Loans will
be serviced and administered in accordance with all requirements of any Investor
that has issued a Purchase Commitment or a Master Commitment applicable
thereto.

	Payment of Taxes. 

The Borrower will pay and discharge all taxes, assessments
and governmental charges or liens imposed upon the Borrower or upon the
Borrower's income or profits, or upon any properties belonging to the Borrower,
prior to the date on which any penalties attach thereto, and all lawful claims
which, if unpaid, might become a Lien upon any such property.

	Corporate Separateness. 

The Borrower will, and will cause each of its Subsidiaries
to, take such actions as are necessary to keep its operations and the operations
of each of its Subsidiaries separate and apart from each of the other's,
including, without limitation, insuring that all customary formalities regarding
the corporate existence of the Borrower and each such Subsidiary, including
holding regular meetings and maintenance of its current minute books, are
followed.

	Collateral. 

The Borrower will (a) warrant and defend the right, title and
interest of the Lender in and to the Collateral against the claims and demands
of all persons whomsoever; (b) service, or cause to be serviced, all Mortgage
Loans in accordance with the requirements of the issuers of Master Commitments
and Purchase Commitments covering the same and all applicable FHA and VA
requirements (including without limitation taking all actions necessary to
enforce the obligations of the obligors under such Mortgage Loans) and service,
or cause to be serviced, all Mortgage Loans backing Mortgage backed Securities
in accordance with applicable governmental requirements and the requirements of
issuers of Purchase Commitments covering the same; (c) hold all escrow funds
collected in respect of Mortgage Loans and mortgage loans backing Mortgage
backed Securities in trust, without commingling the same with non-custodial
funds, and apply the same for the purposes for which such funds were collected;
(d) comply in all respects with the terms and conditions of all Master
Commitments and Purchase Commitments, and all extensions, renewals and
modifications or substitutions thereof or thereto, and deliver or cause to be
delivered to the applicable Investor the Mortgage Loans and Mortgage backed
Securities to be sold under each Purchase Commitment not later than three (3)
Business Days prior to the expiration hereof; and (e) maintain, and, upon
request, shall make available to the Lender the originals, or copies in any case
where the original has been delivered to the Lender or to an Investor, of its
Mortgage Notes, Mortgages, Purchase Commitments, Master Commitments, Hedging
Contracts and all related Mortgage Loan documents and instruments, and all
files, surveys, certificates, correspondence, appraisals, computer programs,
tapes, discs, cards, accounting records and other information and data relating
to the Collateral.

	Portfolio Hedging Arrangements.

The Borrower will enter into and maintain from time to time
Hedging Contracts with respect to Mortgage Loans held by it and commitments made
by it to prospective Mortgage Loan obligors to extend Mortgage Loans at
specified rates of interest. 

	Borrowing Base Valuation Reports.

The Lender will prepare and deliver to the Borrower weekly,
or more frequently as the Lender may from time to time determine, a report with
respect to all Eligible Mortgage Loans, Eligible Nonconforming Mortgage Loans
and Liquid Assets pledged to the Lender as of such date (a "Borrowing Base
Valuation Report"). Unless the Borrower shall, within 48 hours after receiving
any such Borrowing Base Valuation Report, notify the Lender that the Borrower
disagrees with the information contained therein, the Borrower shall be deemed
to have certified to the Lender that, as of the date of the Borrowing Base
Valuation Report: (a) the calculations contained therein are accurate and have
been prepared in accordance with the terms and conditions of the Warehouse
Credit Agreement; and (b) no prepayment is required under the terms of Section
4.02 of the Warehouse Credit Agreement.

	Negative Covenants.

The Borrower covenants and agrees that as of the Effective
Date, and thereafter for so long as this Agreement is in effect and until the
Commitment has terminated, the Note is no longer outstanding and the Advances,
together with interest, Fees and all other Obligations, are paid in full,
without the prior written consent of the Lender:

	Liens. 

The Borrower will not, and will not permit any of its
Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with
respect to (i) any Collateral, or (ii) any right of the Borrower or any of its
Subsidiaries to service Mortgage Loans; provided that the provisions of this
Section 8.01 shall not prevent the creation, incurrence, assumption or existence
of:

	Liens for taxes not yet due, or Liens for taxes being
contested in good faith and by appropriate proceedings for which adequate
reserves have been established;

	Liens created pursuant to the Warehouse Security
Agreement; and

	Liens in favor of FNMA, GNMA or FHLMC on the right of the
Borrower to service Mortgage Loans sold to such agencies.

	[Intentionally omitted]. 

	Dividends. 

	Upon the occurrence and during the continuance of any
Default or Event of Default (determined after giving effect to any proposed
action of the Borrower), the Borrower will not, and will not permit any of its
Subsidiaries to, declare or pay any dividends, or return any capital, to its
stockholders or authorize or make any other distribution, payment or delivery of
property or cash to its stockholders as such, or redeem, retire, purchase or
otherwise acquire, directly or indirectly, for a consideration, any shares of
any class of its capital stock now or hereafter outstanding (or any options or
warrants issued by the Borrower or by such Subsidiary with respect to its
capital stock), or set aside any funds for any of the foregoing purposes, or
permit any of its Subsidiaries to purchase or otherwise acquire for a
consideration any shares of any class of the capital stock of the Borrower or
such Subsidiary now or hereafter outstanding (or any options or warrants issued
by the Borrower or such Subsidiary with respect to its capital stock), except
that any Subsidiary may pay dividends to the Borrower or to any Wholly-Owned
Subsidiary of the Borrower.

	The Borrower will not at any time declare or pay any
dividends, or return any capital, to its stockholders or authorize or make any
other distribution, payment or delivery of property or cash to its stockholders
as such, or redeem, retire, purchase or otherwise acquire, directly or
indirectly, for a consideration, any shares of any class of its capital stock
now or hereafter outstanding (or any options or warrants issued by the Borrower
with respect to its capital stock), or set aside any funds for any of the
foregoing purposes, or permit any of its Subsidiaries to purchase or otherwise
acquire for a consideration any shares of any class of the capital stock of the
Borrower now or hereafter outstanding (or any options or warrants issued by the
Borrower with respect to its capital stock), or pay any special distributions or
bonuses not in the ordinary course of business to any officer or employee that
owns capital stock of the Borrower, if after giving effect thereto the Adjusted
Tangible Net Worth of the Borrower would be less than the amount required by
Section 8.09 hereof.

	[Intentionally omitted]

	Advances, Investments and Loans. 

The Borrower will not, and will not permit any of its
Subsidiaries to, lend money or credit or make advances to any Person, or
purchase or acquire any stock, obligations or securities of, or any other
interest in, or make any capital contribution to, any other Person, except
for:

	Mortgage Loans or other loans extended in the ordinary
course of the Borrower's or any Subsidiary's mortgage banking business;
or

	cash, Cash Equivalents and Mortgage backed
Securities.

	Transactions with Affiliates. 

The Borrower will not, and will not permit any of its
Subsidiaries to, enter into any transaction or series of related transactions,
whether or not in the ordinary course of business, with any Affiliate of the
Borrower, other than on terms and conditions substantially as favorable to the
Borrower or such Subsidiary as would be obtainable by the Borrower or such
Subsidiary at the time in a comparable arm's-length transaction with a Person
other than an Affiliate; provided, however, that the Borrower will not, and will
not permit any of its Subsidiaries to:

	use, furnish, or rely upon an insurance policy (including
but not limited to title insurance and hazard insurance) underwritten by or
issued by any Affiliate of the Borrower;

	use, furnish, or rely upon an appraisal issued by any
Affiliate or by any Person controlled by any Affiliate of the Borrower except
with respect to FHA Loans, VA Loans or State Loans; or

	pledge any Mortgage Loan to the Lender under which the
Borrower or any Affiliate thereof is a mortgagor or guarantor for such Mortgage
Loan.

	Capital Expenditures. 

The Borrower will not, and will not permit any of its
Subsidiaries to, make any expenditure for fixed or capital assets (including,
without limitation, expenditures for maintenance and repairs which should be
capitalized in accordance with GAAP and including capitalized lease obligations)
other than such expenditures made in the ordinary course of such Person's
business in an amount not in excess of $250,000.

	Maximum Adjusted Leverage Ratio.

The Borrower will not permit its Adjusted Leverage Ratio at
any time during any fiscal year to be greater than 15 to 1.

	Minimum Adjusted Tangible Net Worth.

The Borrower will not permit its Adjusted Tangible Net Worth
at any time during any fiscal year to be less than $1,500,000.

	[Intentionally omitted]

	Modifications of Certificate of Incorporation, By-Laws,
Certain Other Agreements and Collateral. 

The Borrower will not, without prior written notice to
the Lender, amend, modify or change its certificate of incorporation (including,
without limitation, by the filing or modification of any certificate of
designation) or by-laws, or any agreement entered into by it, with respect to
its capital stock, or enter into any new agreement with respect to its capital
stock. The Borrower will not, without the prior written consent of the Lender,
amend, modify or waive any of the terms of, or settle or compromise any claim
with respect to, any Collateral or any Collateral Document.

	Limitation on Restrictions on Subsidiary Dividends and
Other Distributions. 

The Borrower will not, and will not permit any of its
Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to
exist or become effective any encumbrance or restriction on the ability of any
such Subsidiary to (a) pay dividends or make any other distributions on its
capital stock or any other interest or participation in its profits owned by the
Borrower or any Subsidiary of the Borrower, or pay any Indebtedness owed to the
Borrower or any Subsidiary of the Borrower, (b) make loans or advances to the
Borrower or (c) transfer any of its properties or assets to the Borrower, except
for such encumbrances or restrictions existing under or by reasons of (i)
applicable law, (ii) this Agreement and (iii) customary provisions restricting
subletting or assignment of any lease governing a leasehold interest of the
Borrower or any Subsidiary of the Borrower.

	Limitation on Issuances of Capital Stock by
Subsidiaries. 

The Borrower will not permit any of its Subsidiaries to issue
any capital stock (including by way of sales of treasury stock) or any options
or warrants to purchase, or securities convertible into, capital stock, except
for (i) transfers and replacements of then outstanding shares of capital stock
and (ii) any issuance of shares after which the Borrower continues to own or
control, directly or indirectly, in the aggregate fifty-one percent (51%) or
more of the voting capital stock of such Subsidiary.

	Business. 

The Borrower will not, and will not permit any of its
Subsidiaries to, without the prior written consent of the Lender (which consent
shall not be unreasonably withheld), engage (directly or indirectly) in any
business other than the business in which the Borrower or such Subsidiary,
respectively, is engaged on the Effective Date.

	Portfolio Aging. 

The Borrower will not at any time permit the aggregate
principal amount of the Eligible Mortgage Loans then pledged as Collateral that
have an Origination Date that is more than 60 days prior to such time, to exceed
0% of the aggregate principal amount of all Eligible Mortgage Loans that are
pledged as Collateral at such time and will not at any time permit the aggregate
principal amount of the Eligible Nonconforming Mortgage Loans then pledged as
Collateral that have an Origination Date that is more than 60 days prior to such
time to exceed 0% of the aggregate principal amount of all Eligible
Nonconforming Mortgage Loans that are pledged as Collateral at such time.

	Minimum Current Ratio. 

The Borrower will not permit its Current Ratio to be less
than 1.0 to 1.0 at any time during any fiscal year.

	Events of Default.

Upon the occurrence of any of the following specified events
(each an "Event of Default"):

	Payments. 

The Borrower shall (i) default in the payment when due of any
principal of any Advance or (ii) default, and such default shall continue
unremedied for 3 or more days, in the payment when due of any interest on any
Advance or any Fees or any other amount owing hereunder or under any Credit
Document; or

	Representations, etc. 

Any representation, warranty or statement made or deemed made
by the Borrower herein or in any other Credit Document or in any certificate
delivered pursuant hereto or thereto or to the Lender as part of the Lender's
due diligence review of the Borrower shall prove to be untrue in any material
respect on the date as of which made or deemed made; or

	Covenants. 

The Borrower shall (i) default in the due performance or
observance by it of any term, covenant or agreement contained in Sections
7.01(e), 7.04, 7.05, 7.06, 7.07, 7.08 or 8 or (ii) default in the due
performance or observance by it of any term, covenant or agreement contained in
this Agreement (other than those referred to in Sections 9.01 and 9.02 and
clause (i) of this Section 9.03) and such default shall continue unremedied for
a period of 15 days; or

	Default Under Other Agreements.

	The Borrower or any of its Subsidiaries shall (i) default
in any payment of any Indebtedness pursuant to which the Borrower is obligated
in any manner in an amount in excess of $250,000 (other than the Obligations)
beyond the period of grace (not to exceed 30 days), if any, provided in the
instrument or agreement under which such Indebtedness was created or (ii)
default in the observance or performance of any agreement or condition relating
to any such Indebtedness (other than the Obligations) or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other
event shall occur or condition exist, the effect of which default or other event
or condition is to cause, or to permit the holder or holders of such
Indebtedness (or a trustee or agent on behalf of such holder or holders) to
cause (determined without regard to whether any notice is required), any such
Indebtedness to become due prior to its stated maturity; or (b) any Indebtedness
(other than the Obligations) of the Borrower or any Indebtedness of its
Subsidiaries pursuant to which the Borrower is obligated in any manner shall be
declared to be due and payable, or required to be prepaid other than by a
regularly scheduled required prepayment or as a mandatory prepayment (unless
such required prepayment or mandatory prepayment results from a default
thereunder or an event of the type that constitutes an Event of Default), prior
to the stated maturity thereof; or

	Default Under Agreements With Lender.

The Borrower, or any of its Subsidiaries, shall default under
any contract, agreement or arrangement between the Borrower, or such Subsidiary,
and the Lender or any Affiliate of the Lender, or the Borrower or such
Subsidiary shall terminate, for any reason whatsoever (other than the failure of
any such Mortgage Loan to be funded to the obligor thereunder), any commitment
of the Lender or any Affiliate of the Lender to purchase Mortgage Loans
originated or owned by the Borrower or such Subsidiary; or

	Bankruptcy, etc. 

An Insolvency Event shall occur with respect to the Borrower
or any of its Subsidiaries ; or

	ERISA. 

Any Plan shall fail to satisfy the minimum funding standard
required for any plan year or part thereof or a waiver of such standard or
extension of any amortization period is sought or granted under Section 412 of
the Code, any Plan is, shall have been or is likely to be terminated or the
subject of termination proceeding under ERISA, any Plan shall have an Unfunded
Current Liability, or the Borrower or any of its Subsidiaries or ERISA
Affiliates has incurred or is likely to incur a liability to or on account of a
Plan under Section 409, 501(i), 501(1), 515, 4062, 4063, 4064, 4069, 4201 or
4204 of ERISA or Section 4971 or 4975 of the Code, and there shall result from
any such event or events the imposition of a Lien upon the assets of the
Borrower or any of its Subsidiaries, the granting of a security interest, or a
liability or a material risk of incurring a liability to the PBGC or a Plan or a
trustee appointed under ERISA or a penalty under Section 4971 of the Code, which
lien, security interest, liability or penalty, singly or in the aggregate
exceeds $100,000; or

	Warehouse Security Agreement. 

The Warehouse Security Agreement or any provision thereof
shall cease to be in full force and effect, or shall cease to give the Lender
the Liens, rights, powers and privileges purported to be created thereby, or the
Borrower shall default in the due performance or observance of any term,
covenant or agreement on its part to be performed or observed pursuant to the
Warehouse Security Agreement; or

	[Intentionally omitted]

	Management. 

Steven M. Majerus shall cease to be actively involved in the
management of the Borrower and its Subsidiaries with substantially the same
duties as currently performed and, within 90 days thereafter, the Borrower shall
have failed to replace such individual with a substitute reasonably satisfactory
to the Lender, based on such individual's experience and background in mortgage
banking; or

	Judgments. 

One or more judgments or decrees shall be entered against the
Borrower or any of its Subsidiaries involving in the aggregate for the Borrower
and its Subsidiaries a liability (not paid or fully covered by insurance) of
$100,000 or more, and all such judgments or decrees shall not have been vacated,
discharged or stayed or bonded pending appeal within 30 days after the entry
thereof; or

	Material Adverse Change. 

A material adverse change shall occur in the financial
condition, operations or prospects of the Borrower or any of its Subsidiaries ;
or any material adverse action shall be taken by any state or federal regulatory
body or any court against the Borrower or any of its Subsidiaries which may
result in the loss of any agreement, permit or license of the Borrower or any of
its Subsidiaries, or otherwise limit the business or operations of the Borrower
or any of its Subsidiaries which loss or limitation would have a material
adverse effect on the financial condition, operations or prospects of the
Borrower; 

then, and in any such event, and at any time thereafter, if
any Event of Default shall then be continuing, the Lender may, by written notice
to the Borrower, take any or all of the following actions, without prejudice to
the rights of the Lender or the holder of the Note to enforce its claims against
the Borrower (provided, that, if an Event of Default specified in Section 9.06
shall occur with respect to the Borrower, the result which would occur upon the
giving of written notice by the Lender to the Borrower as specified in clauses
(i) and (ii) below shall occur automatically without the giving of any such
notice): (i) declare the Commitment terminated, whereupon the Commitment of the
Lender shall forthwith terminate immediately and any Fees shall forthwith become
due and payable without any other notice of any kind; and (ii) declare the
principal of and any accrued interest in respect of all Advances and all
Obligations to be, whereupon the same shall become, forthwith due and payable
without presentment, demand, protest or other notice of any kind, all of which
are hereby waived by the Borrower.

	Default Not a Condition of a 120-Day
Demand. 

Notwithstanding any of the other terms of this Agreement,
including, without limitation, the preceding provisions of this Section 9, the
Lender shall have the right to demand payment of the outstanding Advances at any
time, upon 120 days' prior written notice to the Borrower, whether or not any
Default or Event of Default exists or the Expiry Date has occurred.

	INTENTIONALLY OMITTED. 

	Miscellaneous.

	Payment of Expenses; Indemnity.

	Whether or not the transactions contemplated hereby are
consummated, in addition to the rights of indemnification granted to the
Indemnified Parties under Section 11.01(c) hereof, the Borrower agrees to pay on
demand all costs and expenses in connection with the preparation, execution,
delivery, modification, amendment, administration and monitoring of the Credit
Documents and the other documents to be delivered thereunder (including the
costs in respect of the perfection and maintenance of the security interests and
conducting due diligence with respect to the Borrower and its business),
including, without limitation, the fees and out-of-pocket expenses of counsel
for the Lender, and of local counsel who may be retained by the Lender, with
respect thereto and with respect to advising the Lender as to their rights and
remedies under the Credit Documents, and including all reasonable costs and
expenses in connection with the servicing and liquidation of the Collateral. The
Borrower further agrees to pay on demand all costs and expenses, if any
(including, without limitation, reasonable counsel fees and expenses), in
connection with the enforcement (whether through negotiations, workout, legal
proceedings or otherwise) of the Credit Documents and the other documents to be
delivered thereunder, including, without limitation, reasonable counsel fees and
expenses in connection with the enforcement of rights under this Section
11.01(a).

	Intentionally Omitted.

	Without limiting any other rights which the Lender or any
Affiliate of any thereof, as well as their respective directors, officers,
employees and agents (each, an "Indemnified Party") may have hereunder or under
applicable law, the Borrower hereby agrees to indemnify each Indemnified Party
from and against any and all claims, losses, damages, expenses and liabilities
(including reasonable attorneys' fees) (all of the foregoing being collectively
referred to as "Indemnified Amounts") arising out of, relating to or resulting
from this Agreement or any Credit Documents, any Mortgage Loan, Mortgage backed
Security or other Collateral or the use of any proceeds of Advances, excluding,
however, Indemnified Amounts to the extent (i) resulting from gross negligence
or willful misconduct (as determined by a final judgment of a court of competent
jurisdiction) on the part of such Indemnified Party or any Affiliate of such
Indemnified Party which directly or indirectly controls, is controlled by or is
under common control with such Indemnified Party or is a director or officer of
such Indemnified Party or of an Affiliate of such Indemnified Party or (ii)
resulting from negligence (as determined by a final judgment of a court of
competent jurisdiction) on the part of such Indemnified Party or any Affiliate
of such Indemnified Party which directly or indirectly controls, is controlled
by or is under common control with such Indemnified Party or is a director or
officer of such Indemnified Party or of an Affiliate of such Indemnified Party,
which negligence directly and proximately results in the loss of a Mortgage
Note, the receipt of which Mortgage Note was previously acknowledged in writing
by such Indemnified Party and the loss of which Mortgage Note cannot be
mitigated by the cooperative efforts of the Borrower and the Indemnified Party.
Without limiting or being limited by the foregoing, the Borrower shall pay on
demand to each Indemnified Party any and all amounts necessary to indemnify such
Indemnified Party from and against any and all Indemnified Amounts relating to
or resulting from:

	the making of an Advance secured by a pledge of a
Mortgage Loan or Mortgage backed Security which is not at the date of the
creation of such security interest an Eligible Mortgage Loan or an Eligible
Nonconforming Mortgage Loan or which thereafter ceases to be an Eligible
Mortgage Loan or an Eligible Nonconforming Mortgage Loan;

	reliance on any representation or warranty or statement
made or deemed made by the Borrower (or any of its officers) under or in
connection with any Credit Document which shall have been incorrect when
made;

	the failure by the Borrower to comply with any applicable
law, rule or regulation with respect to any Collateral, or the nonconformity of
any Collateral with any such applicable law, rule or regulation;

	the failure to vest in the Lender under the Warehouse
Security Agreement a valid first priority security interest in the Mortgage
Loans, the Mortgage backed Securities and the other Collateral, except as
otherwise permitted by this Agreement;

	the failure to have filed, or any delay in filing,
financing statements or other similar instruments or documents under the UCC of
any applicable jurisdiction or other applicable laws with respect to any
Collateral, whether at the time of any Advance or at any subsequent time;

	any breach or violation, or alleged violation, of federal
or state securities laws;

	any investigation, litigation or proceeding related to
this Agreement or, any other Credit Document or the use of proceeds of Advances
or in respect of any Mortgage Loan or other Collateral;

	the loss, misplacement or destruction of any cashier's
check issued by the Lender in respect of any Advance after receipt of such check
by the closing agent, escrow agent, title company, attorney or any other
authorized party identified in the Request for Advance relating to such Advance,
it being understood and agreed that, notwithstanding the indemnity under this
Section 11.01(c)(viii) or any such loss, misplacement or destruction, the funds
represented by any such lost, misplaced or destroyed cashier's check shall
constitute an Advance hereunder; and

	the making of any wire transfer to an incorrect account
or in an incorrect amount in accordance with instructions received from the
Borrower, it being understood and agreed that, notwithstanding the indemnity
under this Section 11.01(c)(ix), the funds represented by any such wire shall
constitute an Advance hereunder. 

	If after the date hereof due to either (i) the
effectiveness or introduction of, or any change in, or any change in the
interpretation of, any law or regulation by any court or administrative or
governmental authority charged with administration thereof or (ii) compliance
with any guideline or request from any central bank or other governmental
authority or official (whether or not having the force of law and including, in
any event, any law, regulation or interpretation with respect to capital
adequacy or request in connection with any of the foregoing), there shall be an
increase in the cost to the Lender of making, funding or maintaining any Advance
or the Commitment hereunder or the Lender shall be required to make a payment
calculated by reference to the principal of, or interest on, any Advance made by
it or the Commitment (other than any such increased cost, reduction in the
amount receivable, or payment required to be made resulting from the imposition
or an increase in the rate of any Taxes unless such Taxes are payable by the
Borrower under Section 11.01(e) or there shall be an increase in the amount of
capital required or expected to be maintained by the Lender or any corporation
controlling the Lender and the Lender reasonably determines that the amount of
such capital is increased by or based upon the existence of the Lender's
agreement, in its discretion, to make or maintain Advances hereunder and other
similar agreements and facilities), then the Borrower shall, from time to time,
upon demand by the Lender, immediately pay to the Lender additional amounts
sufficient to compensate the Lender for any such increased cost or increase in
capital (to the extent the Lender reasonably determines such increase in capital
to be allocable to the existence of the Lender's agreements hereunder). A
certificate of an officer of the Lender as to such amounts (and the calculation
thereof) submitted to the Borrower shall be conclusive and binding for all
purposes, absent manifest error.

	Promptly upon (and in no event later than ten (10) days
following) notice from the Lender to the Borrower, the Borrower agrees to pay,
prior to the date on which penalties attach thereto, all present and future
income, stamp and other taxes, levies, or costs and charges whatsoever imposed,
assessed, levied or collected on or in respect of an Advance and/or the
recording, registration, notarization or other formalization of an Advance or
the execution and delivery or otherwise with respect to the Agreement or the
other Credit Documents and/or any payments of principal, interest or other
amounts made on or in respect of an Advance (all such taxes, levies, costs and
charges being herein collectively called "Taxes"); provided that Taxes shall not
include taxes imposed on or measured by the overall net income or receipts of
the Lender by the United States of America or any political subdivision or
taxing authority thereof or therein. The Borrower agrees to also pay such
additional amounts equal to increases in taxes payable by the Lender described
in the foregoing proviso, which increases arise solely from the receipt by the
Lender of payments made by the Borrower described in the immediately preceding
sentence of this Section 11.01(e). Promptly (and in no event later than 10 days)
after the date on which payment of any such Tax is due pursuant to applicable
law, the Borrower will, at the request of the Lender, furnish to the Lender
evidence, in form and substance satisfactory to the Lender, that the Borrower
has met its obligation under this Section 11.01(e). The Borrower agrees to
indemnify the Lender against, and reimburse the Lender on demand for, any Taxes,
as reasonably determined by the Lender in good faith. The Lender shall provide
the Borrower with appropriate receipts for any payments or reimbursements made
by the Borrower pursuant to this Section 11.01(e).

	Notwithstanding anything to the contrary provided herein,
the maximum aggregate amount that the Borrower shall be obligated to pay to the
Lender or to any Indemnified Party pursuant to the provisions of Sections
11.01(b), (d) and (e) shall be $250,000.

	Notices. 

Except as otherwise expressly provided herein, all notices
and other communications provided for hereunder shall be in writing (including
telegraphic, telex, telecopier or cable communication) and mailed, telegraphed,
telexed, telecopied, cabled or delivered: if to the Borrower, the Lender, at its
address specified opposite its signature below, or at such other address as
shall be designated by such party in a written notice to the other parties
hereto. All such notices and communications shall, when mailed, telegraphed,
telecopied or sent by overnight courier, be effective when deposited in the
mails, delivered to the telegraph company or overnight courier, as the case may
be, or sent by telecopier, except that notices and communications given to the
Lender pursuant to this Section shall not be effective until received by the
Lender, as the case may be, at the following addresses:

	
To:
	
GMAC Bank
	
 
	
with a copy to:
	
GMAC Residential Holding Corp.

	
 
	
3710 Kennett Pike
	
 
	
 
	
100 Witmer Road

	
 
	
Greenville, DE 18907
	
 
	
 
	
Horsham, PA 19044

	
 
	
Attn: Chief Operating Officer
	
 
	
 
	
Attn: General Counsel

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
GMAC Bank

	
 
	
 
	
 
	
and
	
100 Century Parkway

	
 
	
 
	
 
	
 
	
Mt. Laurel, NJ 08054

	
 
	
 
	
 
	
 
	
Attn: John Doulong

	Benefit of Agreement. 

This Agreement shall be binding upon and inure to the benefit
of and be enforceable by the respective successors and assigns of the parties
hereto; provided, however, that the Borrower may not assign or transfer any of
its rights or obligations hereunder without the prior written consent of the
Lender. The Lender may at any time assign any of its rights and obligations
hereunder or under the Note.

	Remedies Cumulative. 

No failure or delay on the part of the Lender or the holder
of the Note in exercising any right, power or privilege hereunder or under any
other Credit Document and no course of dealing between the Borrower and the
Lender or the holder of the Note shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, power or privilege hereunder or
under any other Credit Document preclude any other or further exercise thereof
or the exercise of any other right, power or privilege hereunder or thereunder.
The rights, powers and remedies herein or in any other Credit Document expressly
provided are cumulative and not exclusive of any rights, powers or remedies
which the Lender or the holder of the Note would otherwise have. No notice to or
demand on the Borrower in any case shall entitle the Borrower to any other or
further notice or demand in similar or other circumstances or constitute a
waiver of the rights of the Lender or the holder of the Note to any other or
further action in any circumstances without notice or demand.

	Calculations; Computations. 

	The financial statements to be furnished to the Lender
pursuant hereto shall be made and prepared in accordance with GAAP consistently
applied throughout the periods involved (except as set forth in the notes
thereto or as otherwise disclosed in writing by the Borrower to the Lender);
provided that, except as otherwise specifically provided herein, all
computations determining compliance with Section 8 shall utilize accounting
principles and policies in conformity with those used to prepare the historical
financial statements referred to in Section 6.05(a).

	All computations of interest and the Fees hereunder shall
be made on the basis of a year of 360 days for the actual number of days
occurring in the period for which such interest or fees are
payable.

	Governing Law; Submission to Jurisdiction;
Venue. 

	This Agreement and the other Credit Documents and the
rights and obligation of the parties hereunder and thereunder shall be construed
in accordance with and be governed by the law of the State of Delaware, without
regard to principles of conflicts of laws. Any legal action or proceeding
against the Borrower with respect to this Agreement or any other Credit Document
may be brought in the courts of the State of Delaware located in New Castle
County or in the United States Federal courts located in New Castle County, and,
by execution and delivery of this Agreement, the Borrower hereby irrevocably
accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts.

	The Borrower hereby irrevocably waives any objection
which it may now or hereafter have to the laying of venue of any of the
aforesaid actions or proceedings arising out of or in connection with this
Agreement or any other Credit Document brought in the courts referred to in
clause (a) above and hereby further irrevocably waives and agrees not to plead
or claim in any such court that any such action or proceeding brought in any
such court has been brought in an inconvenient forum.

	No Proceedings. 

The Borrower hereby covenants and agrees that it will not
institute against, or join any other Person in instituting against, the Lender,
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or other similar proceeding under the laws of the United States or
any state of the United States.

	Counterparts. 

This Agreement may be executed in any number of counterparts
and by the different parties hereto on separate counterparts, each of which when
so executed and delivered shall be an original, but all of which shall together
constitute one and the same instrument. A set of counterparts executed by all
the parties hereto shall be lodged with the Borrower and the Lender.

	Effectiveness. 

This Agreement shall become effective on the date (the
"Effective Date") on which the Borrower, and the Lender shall have signed a copy
hereof (whether the same or different copies) and shall have delivered the same
to the Lender at its Office.

	Headings Descriptive. 

The headings of the several sections and subsections of this
Agreement are inserted for convenience only and shall not in any way affect the
meaning or construction of any provision of this Agreement.

	Amendment or Waiver. 

Neither this Agreement nor any other Credit Document nor any
terms hereof or thereof may be changed, waived, discharged or terminated unless
such change, waiver, discharge or termination is in writing signed by the Lender
and the Borrower.

	Survival. 

All indemnities set forth herein including, without
limitation, in Section 11.01 shall survive the execution and delivery of this
Agreement and the Note and the making and repayment of the Advances.

	Waiver of Jury Trial. 

THE LENDER AND THE BORROWER EACH HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT EACH OF THEM MAY HAVE TO A TRIAL
BY JURY OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, THE NOTE AND ANY
AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF
ANY PARTY RELATING HERETO OR THERETO. THIS PROVISION IS A MATERIAL INDUCEMENT
FOR THE LENDER TO ENTER INTO THIS AGREEMENT

IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized officers to execute and deliver this Agreement as of the date first
above written. 

	
Address:
	
E-LOAN, INC.

	
5875 Arnold Road
	
 

	
Dublin, CA 94568
	
 

	
Attention: Steven M. Majerus
	
By:___________________________

	
Facsimile No.: (925) 556-2614
	
Title:

	
 
	
 

	
 
	
 

	
GMAC Bank
	
GMAC Bank

	
100 Witmer Road
	
 

	
Horsham, PA 19044
	
 

	
Attn: Legal Department
	
By:___________________________

	
 
	
Title: 

	
 
	
 

	
 
	
 

SCHEDULE 6.11

Capitalization

[SCHEDULE 6.12]

[List of Subsidiaries]

None.

 

SCHEDULE 7.01(p)

Credit Package Documents

(List of Documents to be Delivered

With Respect to a Pledged Mortgage)

 

	Original Mortgage Note, endorsed in blank.

	Original of the security instrument securing the Mortgage
Note (Mortgage or Deed of Trust) or a copy thereof certified by the Borrower,
the title company or the escrow company to be a true copy of the original
instrument submitted for recording.

	Copies of intermediate assignments (if any) with
photocopied or conformed signatures certified by the Borrower, the title company
or the escrow company to be a true copy of the original instrument.

	Original assignment of security instrument in favor of
the Lender, in recordable form.

	Title Binder containing either the original ALTA 1970 or
1987 loan policy of title insurance or a "marked-up" commitment to issue such a
policy or other evidence that such policy will be issued.

	A copy of the Purchase Commitment or the Master
Commitment, as applicable.

	Certificate of casualty or hazard insurance naming the
Borrower as the loss payee.

	Certificate of flood insurance naming the Borrower as
loss payee, or written certification that flood insurance is not
required.

	A copy of the mortgage insurance. 

	A copy of the credit report or credit information on the
maker of the Mortgage Note.

	HUD-1 or other settlement or closing statements.

	Truth in Lending (Regulation Z) Disclosure
Statement.

	Appraisal of the real property.

 

 

 

*Documents currently required
SCHEDULE 8.04(ii)

 

Existing Indebtedness

[SCHEDULE 8.06]

[List of Affiliated Appraisers

or Title Agents]

 

 

EXHIBIT A-1

 

[FORM OF PLEDGE OF COLLATERAL]

Pledge of Collateral

	
GMAC Bank

3710 Kennet Pike

Greenville, DE 18907
	FROM:Borrower's Name

Borrower's Address

_________________________________________

_________________________________________

Attention:_________________________________

Phone:______________Fax: _____________

Date: ____________________, 200 __

	
Customer Number: 0000 
	
Mortgage Loan Number: _____________

	
 

	
Mortgagor's
Name:_________________________________________________________

	
Property
Address:_________________________________________________________

	
Reference is made to the Warehouse Credit
Agreement, dated as of October __, 2001 (as amended from time to time, the
"Warehouse Credit Agreement", the terms defined therein being used herein as
therein defined), among the undersigned, as borrower, and GMAC Bank, as
Lender.

	
Loan Type: (check appropriate boxes)

	
Dry
	

	Conforming

	

	
Nonconforming
	

	
Credit A - Loan

	
Wet
	

	Jumbo

	

	
 
	

	
Credit B - Loan

	
 
	
 
	
 
	
 
	
 
	

	
Credit C - Loan

	
 
	
 
	Government

	

	
FHA
	

	
Credit D - Loan

	
Refinance
	

	
 
	

	
VA
	
 
	
 

	
Purchase
	

	State Program

	

	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
First Mortgage
	

	Committed

	

	
 
	
 
	
 

	
Second Mortgage
	

	
 
	
 
	
 
	
 
	
 

	
Loan Information:
	
 
	
 
	
 

	
Note Amount:
	
_____________________
	
LTV:
	
_____________________

	
Interest Rate:
	
_____________________
	
FICO Score:
	
_____________________

	
Discount/Premium:
	
_____________________
	
 
	
 

	
Mortgage Date:
	
_____________________
	
 
	
 

	
Term:
	
_____________________
	
 
	
 

	
Investor Name:
	
__________________________________________

	Takeout Price:

	
_____________________

	Expiration Date:

	
_____________________

	Commitment No.:

	
_____________________

 

 

 

In connection with the above Mortgage Loan, enclosed herewith are the
required collateral documents that are being pledged to you, as Lender as set
forth below.

	

	
Original Assignment of Mortgage or deed of trust by the borrower
to GMAC Bank, as Lender, in recordable form

	

	
Closing protection letter

	

	
A copy of the Purchase Commitment/Master Commitment (if
applicable)

	

	
Evidence of the Credit Score of the obligor of the Mortgage Note

	

	
*Original executed Mortgage Note endorsed in blank (interim
endorsement, if applicable)

	

	
*True copy of Mortgage or deed of trust certified by closing
agent/title company

	

	
*Certified true copy of intervening assignment(s) (if
any)

	

	
*Marked up copy of title binder

*These documents are not required for a Wet Advance
disbursement but must be received [directly from the settlement agent] within
five (5) business days after date of settlement.

Additionally, we hereby certify that:

	In connection with the Mortgage Loan described above, we
have caused or, in the case of a Wet Advance, will cause the security instrument
to be recorded in the official real property records of the county where the
property is located. The assignment of the security instrument, when required,
will be recorded immediately upon receipt of the recording information for the
security instrument.

	We have caused or, in the case of a Wet Advance, will
cause to be issued a mortgage title insurance policy insuring a valid first or
second lien, as applicable.

[NAME OF BORROWER]

 
By:

Borrower's Authorized Signature

 

EXHIBIT A-2

[FORM OF REQUEST FOR ADVANCE]

Request for Advance by Check

	
Borrower's Name:
	
_________________________________
	
Date: _______________, 200__

	
Borrower's Address:
	
_________________________________
	
 

	
 
	
_________________________________
	
 

	
Ladies and Gentlemen:

The undersigned refers to the Warehouse Credit Agreement,
dated as of October __, 2001 (as amended from time to time, the "Warehouse
Credit Agreement", the terms defined therein being used herein as therein
defined), between the undersigned, as borrower, and GMAC Bank as Lender, and
hereby gives you notice, irrevocably, pursuant to Section 2.04 of the Warehouse
Credit Agreement, that the undersigned hereby requests an Advance under the
Warehouse Credit Agreement, and in that connection sets forth below the
information relating to such Advance as required by Section 2.04 of the
Warehouse Credit Agreement. The representations and warranties contained in the
Credit Documents (as such term is defined in the Warehouse Credit Agreement) are
true and correct, both before and after giving effect to the Advance requested
hereby as though made on and as of such date.

	
Customer No.:
	
_____________________
	
Requested Advance Amount: _________________

(minimum $500)

	
Purpose of Advance:
	

	
Loan No._____________
	

	
Interest
	

	
Other: _______________

	
Advance Date:
	
___________________

	
Method of Advance:

	
Wire Transfer
	

	
Draft No. ________________________
	

	
Cashier's Check
	

	
 
	
 

	
Disbursement Information (if advance is by cashier's
check):
	
 

	
Payee Name (Title Co./Atty.):
	

	
Address:
	

	
City/State/Zip:
	

	
Attention:
	

	
Phone:
	

	
Fax:
	

	
Disbursement Information (if advance is by
wire):
	
 

	
Bank 1 Name:
	

	
City/State:
	

	
ABA#:
	

	
Attention:
	

	
Bank 2 Name:
	

	
City/State:
	

	
Account #:
	

	
Attention:
	

	
Beneficiary Acct. Title:
	

	
City/State:
	

	
Account #:
	

	
Reference Information:
	

	
Phone:
	

	
Fax:
	

[NAME OF BORROWER]

 
By:

Borrower's Authorized Signature

EXHIBIT A-3

[FORM OF REQUEST FOR ADVANCE]

Request for Advance by Wire

	
Borrower's Name:
	
_________________________________
	
Date: _______________, 200__

	
Borrower's Address:
	
_________________________________
	
 

	
 
	
_________________________________
	
 

	
Ladies and Gentlemen:

The undersigned refers to the Warehouse Credit Agreement,
dated as of October __, 2001 (as amended from time to time, the "Warehouse
Credit Agreement", the terms defined therein being used herein as therein
defined), between the undersigned, as borrower, and GMAC Bank as Lender, and
hereby gives you notice, irrevocably, pursuant to Section 2.04 of the Warehouse
Credit Agreement, that the undersigned hereby requests an Advance under the
Warehouse Credit Agreement, and in that connection sets forth below the
information relating to such Advance as required by Section 2.04 of the
Warehouse Credit Agreement. The representations and warranties contained in the
Credit Documents (as such term is defined in the Warehouse Credit Agreement) are
true and correct, both before and after giving effect to the Advance requested
hereby as though made on and as of such date.

	
Customer No.:
	
_____________________
	
Requested Advance Amount: _________________

(minimum $500)

	
Purpose of Advance:
	

	
Loan No._____________
	

	
Interest
	

	
Other: _______________

	
Borrower's Name:
	
_____________________________

	
Advance Date:
	
_____________________________

	
Disbursement Information:
	
 

	
Bank One:
	

	
Name:
	

	
City/State:
	

	
ABA#:
	

	
Attention:
	

	
Bank Two: (if Applicable)
	

	
Name:
	

	
City/State:
	

	
Account #:
	

	
Attention:
	

	
Beneficiary Acct. Title:
	

	
City/State:
	

	
Account #:
	

	
Reference Information:
	

	
Phone:
	

	
Fax:
	

 
[NAME OF BORROWER]

 
By:

Borrower's Authorized Signature

	
 
	
GMAC Bank use only
	
 

	
 
	
 

	
Approvals:
	
___________________________
	
_______________________________

	
 
	
 
	
 

	
 
	
Treasury Desk use only
	
 

	
 
	
 

	
Repetitive No.: 
	
Wire No. & Date:

	
Initials: 
	
 

	
GL# 
	
Cost Center:

	
 
	
 

 

EXHIBIT B-1

 

[FORM OF WET ADVANCE

DISBURSEMENT INSTRUCTION]
Date

Closing Agent/Title Company

Street

City, State, Zip
Re:Name of Mortgagor

Address

City, State, Zip

Loan No. 

Dear Settlement Agent/Attorney:

We have been informed by ____________________________ (the
"Mortgage Banker") that you will act as closing/settlement agent with respect to
the above referenced mortgage loan scheduled for settlement on
______________________________.

You have received a check (the "Funds") which represents the
proceeds of a warehouse advance against the above mortgage loan which has been
pledged as collateral to GMAC Bank, as Lender. You are hereby authorized to
disburse the Funds only if the following conditions are met:

	The original mortgage note executed by the borrower must
be endorsed by the lender in blank.

	The original mortgage note, together with the following
documents, must be returned by you directly to our office (and not
to the Mortgage Banker) for receipt no later than the third business day
following settlement:

Copy of security instrument (mortgage or deed of trust) certified by your
office

Copy of marked up title binder

Copy of intervening assignment of mortgage (if applicable) certified by your
office 

Your disbursement of the Funds will indicate your acceptance
of these conditions and your agreement to act as our bailee and agent for the
documents related to the above referenced mortgage loan while they remain in
your possession.

Please forward all of the above-referenced documents via
Federal Express to the following address:

GMAC Bank

Warehouse Lending

100 Century Parkway

Mt. Laurel, NJ 08054

Attn: John Doulong

If you cannot comply with these conditions, you shall not
disburse the Funds and you shall return the Funds immediately to the above
address. Any questions or concerns should be referred to ___________________ at
(___) ____- _____.

Thank you for your assistance.

Sincerely,

GMAC BANK, as Lender

 

By: _____________________

Name:________________

Title: __________________

 

EXHIBIT B-2

 

[FORM OF BORROWER'S WET ADVANCE

DISBURSEMENT INSTRUCTION]

Date

Closing Agent/Title Company

Street

City, State, Zip

Re:Name of Mortgagor

Address

City, State, Zip

Loan No. 

Dear Closing Agent / Title Company:

We have informed GMAC Bank ("Lender") that you will act as
closing/settlement agent with respect to the above referenced mortgage loan
scheduled for settlement on ______________________________.

You will receive a wire transfer or a cashier's check (the
"Funds") which represents the proceeds of a warehouse advance against the above
mortgage loan which has been pledged as collateral to Lender under a warehouse
credit agreement. You are hereby authorized to disburse the Funds only if the
following conditions are met:

	The original mortgage note executed by the borrower must
be endorsed by the lender in blank.

	The original mortgage note, together with the following
documents, must be returned by you directly to Lender's office (and
not to our office) for receipt no later than the third business day
following settlement:

Copy of security instrument (mortgage or deed of trust) certified by your
office

Copy of marked up title binder 

Copy of intervening assignment of mortgage (if applicable) certified by your
office 

Your disbursement of the Funds will indicate your acceptance
of these conditions and your agreement to act as Lender's bailee and agent for
the documents related to the above referenced mortgage loan while they remain in
your possession.

Please forward all of the above-referenced documents via
Federal Express to the following address:

GMAC Bank

Warehouse Lending

100 Century Parkway

Mt. Laurel, NJ 08054

Attn: John Doulong

All other closing documents are to be returned to [NAME OF
BORROWER], at the following address:

_________________________________

_________________________________

_________________________________

If you cannot comply with these conditions, you shall not
disburse the Funds and you shall return the Funds immediately. Funds disbursed
to you by cashier's check shall be returned by sending the cashier's check, via
Federal Express, to Lender's address listed above. Funds disbursed to you by
wire shall be returned, as per the following wire instructions:

Bank:GMAC Bank

ABA #: 

Acct. Title: 

Account #: 

Attention: 

Reference: [Borrower, mortgagor's name]

Any questions should be referred to ___________________ at
(___) ____- _____.

Thank you for your assistance.

Sincerely,

[BORROWER]

 

By:

Title

EXHIBIT D

 

[FORM OF NOTE]

NOTE

U.S. $ _____________________________, ________ 

__________ __, 2001 

FOR VALUE RECEIVED, E-LOAN, INC., a corporation organized and
existing under the laws of Delaware (the "Borrower"), hereby promises to pay to
the order of GMAC Bank, a federal savings bank (the "Lender"), in lawful money
of the United States of America in immediately available funds on the Expiry
Date (as defined in the Warehouse Credit Agreement) the principal sum of
_____________ United States Dollars ($____________), or, if less, the aggregate
unpaid principal amount of all Advances (as defined in the Warehouse Credit
Agreement) made by the Lender to the Borrower pursuant to the Warehouse Credit
Agreement.

The Borrower promises also to pay interest on the unpaid
principal amount of each Advance from the date such Advance is made until paid
in full, at the interest rates, and at the times, as specified in the Warehouse
Credit Agreement.

This Note is the Note referred to in the Warehouse Credit
Agreement, dated as of _________ ___, 200__ (the "Warehouse Credit Agreement"),
among the Borrower and the Lender and is entitled to the benefits thereof. This
Note is secured by the Warehouse Security Agreement.

This Note is subject to mandatory prepayment as provided in
Section 4.02 of the Warehouse Credit Agreement and, in case an Event of Default
(as defined in the Warehouse Credit Agreement) shall occur and be continuing,
the principal of and accrued interest on this Note may be declared to be due and
payable in the manner and with the effect provided in the Warehouse Credit
Agreement.

The Borrower hereby waives diligence, presentment, protest,
demand or notice of every kind in connection with this Note.

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF DELAWARE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS
OF LAWS.

E-LOAN, INC.

 

By:

Name:

Title:

 

EXHIBIT E

 

[FORM OF OPINION OF SPECIAL

COUNSEL FOR THE BORROWER]

____________ ___, 2001

[Initial Borrowing Date]

GMAC BANK

3710 Kennett Pike

Greenville, DE 18907

Ladies and Gentlemen:

We have acted as special counsel for E-Loan, Inc, a
corporation organized and existing under the laws of Delaware (the "Borrower"),
Christian A. Larsen and Janina D. Pawlowski (each a "Guarantor" and collectively
the "Guarantors") in connection with the following documents (collectively, the
"Credit Documents"):

	the Warehouse Credit Agreement, dated as of ___________
___, 200_ (the "Warehouse Credit Agreement"), among the Borrower and GMAC Bank,
a federal savings bank ("Lender");

	the Note, dated _________, 200__, executed and delivered
by the Borrower; 

	the Warehouse Security Agreement, dated as
of_____________ ___, 200__, between the Borrower and Lender;

	[the Guaranty and Surety Agreement dated as of
___________, 200__ (the "Guaranty") given by the Guarantor[s] for the benefit of
the Lender; and

	the Support Agreement dated as of _________, 200__ (the
"Support Agreement") given by [the Guarantors] for the benefit of the
Lender].

This opinion is delivered to you pursuant to Section 5.04 of
the Warehouse Credit Agreement. Terms used herein which are defined in the
Warehouse Credit Agreement shall have the respective meanings set forth in the
Warehouse Credit Agreement, unless otherwise defined herein.

In connection with this opinion, we have examined the
originals, or certified, conformed or reproduction copies, of all records,
agreements, instruments and documents as we have deemed relevant or necessary as
the basis for the opinions hereinafter expressed. In stating our opinion, we
have assumed the genuineness of all signatures on original or certified copies,
the authenticity of documents submitted to us as originals and the conformity to
original or certified copies of all copies submitted to us as certified or
reproduction copies.

We have assumed, for purposes of the opinions expressed
herein, that the parties to the Credit Documents other than the Borrower [and
the Guarantors] have the power and authority to enter into and perform each of
the Credit Documents and that each of the Credit Documents has been duly
authorized, executed and delivered by each such other party.

Based upon the foregoing, and subject to the limitations set
forth herein, we are of the opinion that:

	Each of the Borrower and its Subsidiaries [and
each Guarantor] (i) is a duly organized and validly existing corporation in good
standing under the laws of the jurisdiction of its incorporation, (ii) has the
power and authority to own its property and assets and to transact the business
in which it is engaged and (iii) is duly qualified as a foreign corporation and
in good standing in each jurisdiction where the ownership, leasing or operation
of property or the conduct of its business requires such qualification.

	The Borrower has the corporate power to execute, deliver
and perform the terms and provisions of each of the Credit Documents and has
taken all necessary corporate action to authorize the execution, delivery and
performance by it of each such Credit Document. The Borrower has duly executed
and delivered each of the Credit Documents, and each such Credit Document
constitutes its legal, valid and binding obligation enforceable in accordance
with its terms, except as the enforceability thereof may be limited by
applicable bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors' rights generally and by general
equitable principles (regardless of whether the issue of enforceability is
considered in a proceeding in equity or at law). [Each Guarantor has the
[corporate] power to execute, deliver and perform the terms and provisions of
the Guaranty and the Support Agreement and has taken all necessary [corporate]
action to authorize the execution, delivery and performance by it, him or her of
the Guaranty and the Support Agreement. Each Guarantor has duly executed and
delivered the Guaranty and the Support Agreement, and the Guaranty and the
Support Agreement constitute the legal, valid and binding obligation of each
Guarantor, enforceable in accordance with their terms, except as the
enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of creditors'
rights generally and by general equitable principles (regardless of whether the
issue of enforceability is considered in a proceeding in equity or at law).]

	Neither the execution, delivery or performance by the
Borrower [or any Guarantor, as the case may be,] of the Credit Documents, nor
compliance by it [or him or her] with the terms and provisions thereof, (i) will
contravene any provision of law, statute, rule or regulation (including, without
limitation, Regulations G, T, U and X of the Board of Governors of the Federal
Reserve System) or, to the best of our knowledge after due inquiry, any order,
writ, injunction or decree of any court or governmental instrumentality, (ii)
will conflict or be inconsistent with or result in any breach of any of the
material terms, covenants, conditions or provisions of, or constitute a default
under, or result in the creation or imposition of (or the obligation to create
or impose) any Lien upon any of the property or assets of the Borrower [or such
Guarantor] pursuant to the terms of any indenture, mortgage, deed of trust,
credit agreement, loan agreement or any other agreement, contract or instrument
of which we are aware to which the Borrower [or such Guarantor] is a party or by
which it [or he or she] or any of its [or his or her] property or assets is
bound or to which it [or he or she] may be subject or (iii) will violate any
provision of the Certificate of Incorporation or By-Laws of the Borrower [or any
Guarantor].

	No order, consent, approval, license, authorization or
validation of, or filing, recording or registration with (except as have been
obtained or made prior to the Effective Date), or exemption by, any governmental
or public body or authority, or any subdivision thereof, is required to
authorize, or is required in connection with, (i) the execution, delivery and
performance of any Credit Document or (ii) the legality, validity, binding
effect or enforceability of any such Credit Document. 

	To the best of our knowledge after due inquiry, there are
no actions, suits or proceedings pending or threatened (i) with respect to any
Credit Document or (ii) that could materially and adversely affect the business,
operations, property, assets, condition (financial or otherwise) or prospects of
the Borrower.

	Neither the Borrower nor any of its Subsidiaries is an
"investment company" within the meaning of the Investment Company Act of 1940,
as amended.

	The Borrower possesses all licenses, permits and other
governmental authorizations or approvals issued or granted by any federal, state
or local governmental body, or any agency thereof, necessary to permit the
Borrower to conduct its mortgage origination, acquisition, servicing and selling
business, as the case may be, as it is now being conducted, and all material
licenses, permits and authorizations otherwise relating to its business. Each
such license, permit or authorization is in good standing and there is no
proceeding pending or, to the best of our knowledge after due inquiry,
threatened to revoke or limit any of them or impose any penalty or other
disciplinary sanction in connection with any of them.

	The execution and delivery of the Warehouse Security
Agreement by the Borrower is effective to create a valid and enforceable
security interest in favor of the Lender in the Collateral and the Proceeds
thereof.

	The Lender will have a valid and duly perfected first
priority security interest, without further requirements for perfection or
preservation of such perfection, in (i) the Mortgage Notes pledged as Collateral
upon the delivery thereof to the Lender pursuant to the Warehouse Credit
Agreement and the Warehouse Security Agreement and (ii) all cash constituting
proceeds of the Collateral for not more than 10 days after the receipt of such
proceeds by the Borrower and thereafter if delivered to the Lender within such
period.

	The Lender will have a valid and duly perfected first
priority security interest, without further requirements for perfection or
preservation of such perfection, in the Mortgage-backed Securities pledged as
Collateral upon (a) the registration of such Mortgage-backed Securities in the
name of Lender, and (b) the registration on the books of Lender of the interest
of the Lender in such Mortgage-backed Securities and confirmation to the Lender
of such registration.

	The Lender on behalf of the Lender will have a valid and
duly perfected first priority security interest in the Collateral (other than
the Mortgage Notes and the Mortgage-backed Securities), including, without
limitation, the Purchase Commitments and the Master Commitments, without further
requirements for perfection or preservation of such perfection, upon the proper
filing of Form UCC-1 financing statements in the form attached hereto with the
following filing offices: ____________________ and ____________________.

 

Very truly yours,

 

EXHIBIT F-1

 

[FORM OF OFFICERS' CERTIFICATE FOR BORROWER]

[INSERT NAME OF BORROWER]

Officers' Certificate

I, the undersigned, ____________ [President/Vice-
President] of ____________________ [INSERT NAME OF BORROWER], a corporation
organized and existing under the laws of ______________ ("the Borrower"), DO
HEREBY CERTIFY that:

	This Certificate is furnished pursuant to Section
5.06 of the Warehouse Credit Agreement, dated as of __________ __, 200_, between
the Borrower and GMAC Bank, as Lender (such Warehouse Credit Agreement, as in
effect on the date of this Certificate, being herein called the "Warehouse
Credit Agreement"). Unless otherwise defined herein capitalized terms used in
this Certificate have the meanings assigned to those terms in the Warehouse
Credit Agreement.

	The persons named below have been duly elected, have duly
qualified as and at all times since _____________ (to and including the date
hereof) have been officers of the Borrower, holding the respective offices below
set opposite their names, and the signatures below set opposite their names are
their genuine signatures.

	
Name
	
Office
	
Signature

	
__________________
	
__________________
	
__________________

	
__________________
	
__________________
	
__________________

	
__________________
	
__________________
	
__________________

	Attached hereto as Exhibit A is a copy of the Certificate
of Incorporation of the Borrower as filed in the Office of _________________ on
________, 19__, together with all amendments thereto adopted through the date
hereof. No action has been taken by the Borrower, its shareholders, directors or
officers in contemplation of the liquidation or dissolution of the
Borrower.

	Attached hereto as Exhibit B is a true and correct copy
of the By-Laws of the Borrower, together with all amendments thereto adopted
through the date hereof, which By-Laws as amended to date are in full force and
effect.

	Attached hereto as Exhibit C is a true and correct copy
of resolutions duly adopted by the Board of Directors of the Borrower at a
meeting on ______________, at which a quorum was present and acting throughout,
which resolutions have not been revoked, modified, amended or rescinded and are
still in full force and effect. Except as attached hereto as Exhibit C, no
resolutions have been adopted by the Board of Directors of the Borrower which
deal with the execution, delivery or performance of any of the Credit
Documents.

	Attached hereto as Exhibit D is a good standing
certificate from the Secretary of State of the jurisdiction of incorporation of
the Borrower.

	On the date hereof, the representations and warranties
contained in Section 6 of the Warehouse Credit Agreement are true and correct,
both before and after giving effect to each Advance to be made on the date
hereof and the application of the proceeds thereof.

	On the date hereof, no Default or Event of Default has
occurred and is continuing or would result from the Advances to be made on the
date hereof or from the application of the proceeds thereof.

	I know of no proceeding for the dissolution or
liquidation of the Borrower or threatening its existence.

IN WITNESS WHEREOF, I have hereunto set my hand this ____ day
of _____________, 200_.

[NAME OF BORROWER]

 

Name:

Title:

 

I, the undersigned, _________________ [Secretary/ Assistant
Secretary] of the Borrower, DO HEREBY CERTIFY that:

	[Insert name of Person making the above
certifications] is the duly elected and qualified ___________ of the Borrower
and the signature above is [his] [her] genuine signature.

	The certifications made by [name] in items 2, 3, 4, 5 and
6 above are true and correct.

	I know of no proceeding for the dissolution or
liquidation of the Borrower or threatening its existence.

IN WITNESS WHEREOF, I have hereunto set my hand this ____ day
of ____________, 200_.

[NAME OF BORROWER]

 

______________________________

Name:

Title:

 

EXHIBIT F-2

 

CERTIFICATION OF PRINCIPAL OWNERS AND

SENIOR OFFICERS REGARDING DEBARMENT, SUSPENSION,

AND OTHER RESPONSIBILITY MATTERS

	Except as set forth on Annex A attached
hereto, the undersigned certifies to the best of his or her knowledge and
belief, that (s)he or any entity, or any predecessor or successor in interest to
such entity, for which (s)he is or was a senior officer, stockholder or
partner:

	Is not presently, or has not within a ten-year period
preceding this certification been, debarred, suspended, on probation, declared
ineligible, or voluntarily excluded (or proposed for any of the above) from, or
otherwise in any way limited in, participating in governmental programs by any
Federal department or agency or instrumentality;

	Has not within a ten year period preceding this
Certification been convicted of, had a civil or administrative judgment rendered
against it, been subject to administrative sanctions, or otherwise entered into
a settlement agreement or consent decree, for (i) commission of fraud or a
criminal offense in connection with obtaining, attempting to obtain, or
performing a public (Federal, State or local) transaction or contract under a
public transaction; (ii) commission of embezzlement, theft, forgery, bribery,
falsification or destruction of records; (iii) making false statements; or (iv)
material violation of any statute, regulation or rule relating to the sale of
residential real property or the extension of credit; and

	Is not presently indicted for or otherwise criminally,
civilly or administratively charged by a governmental entity (Federal, State or
local) with commission of any of the offenses enumerated in paragraph (1)(b) of
this certification.

	Except as set forth on Annex A attached hereto, the
undersigned certifies to the best of his or her knowledge and belief, that no
license, permit, approval, qualification or registration to engage in the
business of mortgage origination or mortgage lending issued by any state or
federal regulatory authority or mortgage insurance company to any entity for
which (s)he is or was a senior officer, stockholder or partner, ever has been
revoked, suspended, denied or in any way impaired.

WITNESS MY HAND this ____ day of ________, 200_.

 

 
By:

Name:

Title:

ANNEX A

EXCEPTIONS TO CERTIFICATIONS

 

 

EXHIBIT G

 

 

 

 

CREDIT SCORES

 

 

 

 

TYPE OF MORTGAGE LOAN FICO SCORE

Credit A- Loan 641 and above

Credit B Loan590-640

Credit C Loan550-589

Credit D Loan500-549

Eligible HELOC620 and above

EXHIBIT H

 

[INTENTIONALLY DELETED]

 

 

EXHIBIT I

 

FORM OF WAREHOUSE SECURITY AGREEMENT

 

 

EXHIBIT J

 

 

[INTENTIONALLY DELETED]

 

 

EXHIBIT K

 

 

[INTENTIONALLY DELETED]

 

 

EXHIBIT L

 

 

FORM OF INTERCREDITOR AGREEMENT

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