Document:

Sale and Servicing Agreement

 Exhibit 10.1 
  
 EXECUTION VERSION 
  
 SALE AND SERVICING AGREEMENT 
  
 dated as of August 1, 2004 
  
 by and among 
  
 ACCREDITED MORTGAGE LOAN REIT TRUST, 
 as Seller, 
  
 ACCREDITED HOME LENDERS, INC., 
 as Sponsor and Master Servicer, 
  
 ACCREDITED MORTGAGE LOAN TRUST 2004-3, 
 as
Issuer, 
  
 COUNTRYWIDE HOME LOANS SERVICING LP, 
 as Backup Servicer, 
  
 and 
  
 DEUTSCHE BANK NATIONAL TRUST COMPANY, 
 as Indenture Trustee 

 TABLE OF CONTENTS 
  

					
	 	  	Page

	ARTICLE I	  	 
	DEFINITIONS	  	 
			
	 Section 1.01.
	 	Certain Defined Terms	  	1
	 Section 1.02.
	 	Provisions of General Application	  	2
		
	 ARTICLE II
 SALE AND CONVEYANCE OF THE MORTGAGE LOANS
	  	 
			
	 Section 2.01.
	 	Purchase and Sale of Mortgage Loans; Deposit of Derivatives	  	2
	 Section 2.02.
	 	Reserved	  	3
	 Section 2.03.
	 	Purchase Price	  	3
	 Section 2.04.
	 	Possession of Mortgage Files; Access to Mortgage Files	  	3
	 Section 2.05.
	 	Delivery of Mortgage Loan Documents	  	3
	 Section 2.06.
	 	Acceptance of the Trust Estate; Certain Substitutions; Certification by the Indenture Trustee	  	6
	 Section 2.07.
	 	Grant of Security Interest	  	8
	 Section 2.08.
	 	Further Action Evidencing Assignments	  	9
	 Section 2.09.
	 	Assignment of Agreement	  	9
		
	ARTICLE III	  	 
	REPRESENTATIONS, WARRANTIES AND COVENANTS	  	 
			
	 Section 3.01.
	 	Representations, Warranties and Covenants of the Master Servicer	  	10
	 Section 3.02.
	 	Representations, Warranties and Covenants of the Sponsor	  	11
	 Section 3.03.
	 	Representations, Warranties and Covenants of the Backup Servicer	  	13
	 Section 3.04.
	 	Representations, Warranties and Covenants of the Indenture Trustee	  	14
	 Section 3.05.
	 	Covenants and Representations of the Sponsor and Master Servicer Regarding Prepayment Charges	  	15
	 Section 3.06.
	 	Representations, Warranties and Covenants of the Seller	  	16
		
	ARTICLE IV	  	 
	THE MORTGAGE LOANS	  	 
			
	 Section 4.01.
	 	Representations and Warranties Concerning the Mortgage Loans	  	17
	 Section 4.02.
	 	Purchase and Substitution	  	26
		
	ARTICLE V	  	 
	ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS	  	 
			
	 Section 5.01.
	 	The Master Servicer	  	27
	 Section 5.02.
	 	Collection of Certain Mortgage Loan Payments; Collection Account	  	30
	 Section 5.03.
	 	Permitted Withdrawals from the Collection Account	  	32
	 Section 5.04.
	 	Hazard Insurance Policies; Property Protection Expenses	  	33

  

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	 Section 5.05.
	 	Assumption and Modification Agreements	  	34
	 Section 5.06.
	 	Realization Upon Defaulted Mortgage Loans	  	35
	 Section 5.07.
	 	Indenture Trustee to Cooperate	  	36
	 Section 5.08.
	 	Servicing Compensation; Payment of Certain Expenses by Master Servicer	  	37
	 Section 5.09.
	 	Annual Statement as to Compliance	  	37
	 Section 5.10.
	 	Annual Independent Public Accountants’ Servicing Report	  	38
	 Section 5.11.
	 	Access to Certain Documentation	  	38
	 Section 5.12.
	 	Maintenance of Fidelity Bond	  	38
	 Section 5.13.
	 	Subservicing Agreements Between the Master Servicer and Subservicer and Subservicers	  	38
	 Section 5.14.
	 	Reports to the Indenture Trustee; Collection Account Statements	  	40
	 Section 5.15.
	 	Optional Purchase of Defaulted Mortgage Loans	  	40
	 Section 5.16.
	 	Reports to be Provided by the Master Servicer and the Backup Servicer	  	40
	 Section 5.17.
	 	[Reserved]	  	42
	 Section 5.18.
	 	Delinquency Advances	  	42
	 Section 5.19.
	 	Indemnification; Third Party Claims	  	43
	 Section 5.20.
	 	Maintenance of Corporate Existence and Licenses; Merger or Consolidation of the Master Servicer and Backup Servicer	  	43
	 Section 5.21.
	 	Assignment of Agreement by Master Servicer and Backup Servicer; Master Servicer and Backup Servicer Not to Resign	  	43
	 Section 5.22.
	 	Periodic Filings with the Securities and Exchange Commission Additional Information	  	44
	 Section 5.23.
	 	Administrative Duties	  	45
		
	ARTICLE VI	  	 
	APPLICATION OF FUNDS	  	 
			
	Section 6.01.	 	Deposits to the Payment Account	  	46
	 Section 6.02.
	 	Collection of Money	  	46
	 Section 6.03.
	 	Application of Principal and Interest	  	46
	 Section 6.04.
	 	[Reserved]	  	46
	 Section 6.05.
	 	Compensating Interest	  	46
	 Section 6.06.
	 	[Reserved]	  	47
		
	ARTICLE VII	  	 
	SERVICER DEFAULT	  	 
			
	 Section 7.01.
	 	Servicer Events of Default	  	47
	 Section 7.02.
	 	Backup Servicer to Act: Appointment of Successor	  	50
	 Section 7.03.
	 	Waiver of Defaults	  	53
	 Section 7.04.
	 	[Reserved]	  	53
	 Section 7.05.
	 	[Reserved]	  	53
	 Section 7.06.
	 	[Reserved]	  	53
	 Section 7.07.
	 	[Reserved]	  	53

  

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	ARTICLE VIII	  	 
	TERMINATION	  	 
			
	Section 8.01.	  	Termination	  	54
	 Section 8.02.
	  	Additional Termination Requirements	  	55
	 Section 8.03.
	  	Accounting Upon Termination of Master Servicer	  	55
	 Section 8.04.
	  	Termination of Backup Servicer as Successor Master Servicer	  	55
		
	ARTICLE IX	  	 
	[RESERVED]	  	 
		
	ARTICLE X	  	 
	MISCELLANEOUS PROVISIONS	  	 
			
	Section 10.01.	  	Limitation on Liability	  	55
	 Section 10.02.
	  	Acts of Noteholders	  	56
	 Section 10.03.
	  	Amendment	  	57
	 Section 10.04.
	  	Recordation of Agreement	  	57
	 Section 10.05.
	  	Duration of Agreement	  	58
	 Section 10.06.
	  	Notices	  	58
	 Section 10.07.
	  	Severability of Provisions	  	58
	 Section 10.08.
	  	No Partnership	  	58
	 Section 10.09.
	  	Counterparts	  	58
	 Section 10.10.
	  	Successors and Assigns	  	59
	 Section 10.11.
	  	Headings	  	59
	 Section 10.12.
	  	No Petition	  	59
	 Section 10.13.
	  	Third Party Beneficiary	  	59
	 Section 10.14.
	  	Intent of the Parties	  	59
	 Section 10.15.
	  	GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL	  	59
			
	 Schedule I
	  	Mortgage Loan Schedule	  	 
	 Appendix I
	  	Defined Terms	  	 
		
	 	  	EXHIBITS
			
	 Exhibit A
	  	Contents of the Mortgage File	  	 
	 Exhibit B
	  	Indenture Trustee’s Acknowledgement of Receipt	  	 
	 Exhibit C
	  	Indenture Trustee’s Acknowledgement of Receipt	  	 
	 Exhibit D
	  	Initial Certification of Indenture Trustee	  	 
	 Exhibit E
	  	Final Certification of Indenture Trustee	  	 
	 Exhibit F
	  	Request for Release of Documents	  	 
	 Exhibit G
	  	AHL Officer’s Certificate	  	 

  

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 SALE AND SERVICING AGREEMENT, dated as of August 1, 2004 (this “Agreement”), by and
among ACCREDITED MORTGAGE LOAN REIT TRUST, a Maryland real estate investment trust, as seller (the “Seller”), ACCREDITED HOME LENDERS, INC., a California corporation, as sponsor (the “Sponsor”), ACCREDITED MORTGAGE
LOAN TRUST 2004-3, a Delaware statutory trust, as issuer (the “Trust”), ACCREDITED HOME LENDERS, INC., a California corporation, as master servicer (the “Master Servicer”), COUNTRYWIDE HOME LOANS SERVICING LP, a
Texas limited partnership, as backup servicer (the “Backup Servicer”), and DEUTSCHE BANK NATIONAL TRUST COMPANY, a national banking association, as indenture trustee (the “Indenture Trustee”). 
  
 W I T N E S S E T H 
  
 WHEREAS, the Sponsor has contributed the mortgage loans (the
“Mortgage Loans”) listed on Schedule I to this Agreement to the Seller, pursuant to the Contribution Agreement and Assignment, dated August 12, 2004, between the Sponsor and the Seller, (the “Contribution
Agreement”); 
  
 WHEREAS, the Seller desires to sell to
the Trust, and the Trust desires to purchase from the Seller, the Mortgage Loans; 
  
 WHEREAS, immediately after such purchase, the Trust will pledge such Mortgage Loans to the Indenture Trustee pursuant to the terms of an Indenture, dated as of August 1, 2004 (the “Indenture”),
between the Trust and the Indenture Trustee, and issue the Accredited Mortgage Loan Trust 2004-3, Asset-Backed Notes (the “Notes”); 
  
 WHEREAS, the Master Servicer has agreed to service the Mortgage Loans, which constitute the principal assets of the Trust; 
  
 WHEREAS, the Backup Servicer has agreed to act as backup servicer of the
Mortgage Loans, which constitute the principal assets of the Trust; 
  
 WHEREAS, the Indenture Trustee will hold the Mortgage Loans and certain other assets pledged to the Indenture Trustee pursuant to the Indenture; and 
  
 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the Seller, the Sponsor, the Trust, the Master Servicer, the
Backup Servicer and the Indenture Trustee hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.01. Certain Defined Terms. Capitalized terms used herein but
not defined herein shall have the meanings ascribed to such terms in Appendix I attached hereto. 
  

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 Section 1.02. Provisions of General Application. 
  
 (a) The terms defined herein and in Appendix I to the Indenture include the
plural as well as the singular. 
  
 (b) The words
“herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole. Unless otherwise noted, all references to Articles and Sections shall be deemed to refer to Articles and Sections
of this Agreement. 
  
 (c) Any reference to statutes are to be
construed as including all statutory provisions consolidating, amending or replacing the statute to which reference is made and all regulations promulgated pursuant to such statutes. 
  
 (d) All calculations of interest with respect to the Group I Notes provided for herein shall be on the basis of a 360-day
year comprised of twelve 30-day months. All calculations of interest with respect to the Group II Notes provided for herein shall be on the basis of a 360-day year and the actual number of days elapsed in the related Accrual Period. All calculations
of interest with respect to any Mortgage Loan provided for herein shall be made in accordance with the terms of the related Mortgage Note and Mortgage or, if such documents do not specify the basis upon which interest accrues thereon, on the basis
of a 360 day year consisting of twelve 30-day months, to the extent permitted by applicable law. 
  
 (e) Any Mortgage Loan payment is deemed to be received on the date such payment is actually received by the Master Servicer; provided,
however, that, for purposes of calculating payments on the Notes, prepayments with respect to any Mortgage Loan are deemed to be received on the date they are applied in accordance with Accepted Servicing Practices consistent with the terms
of the related Mortgage Note and Mortgage to reduce the outstanding Principal Balance of such Mortgage Loan on which interest accrues. 
  
 ARTICLE II 
  
 SALE AND CONVEYANCE OF THE MORTGAGE LOANS 
  
 Section 2.01. Purchase and Sale of Mortgage Loans; Deposit of Derivatives. 
  
 (a) The Sponsor hereby directs the Seller to sell, transfer, assign, set over and convey, and the Seller does hereby sell,
transfer, assign, set over and convey to the Trust, to be included as part of Sub-Trust 1 or Sub-Trust 2, as specified in the Mortgage Loan Schedule, in each case without recourse, but subject to the terms and provisions of this Agreement, all of
the right, title and interest of the Seller in and to the Mortgage Loans, including the Cut-Off Date Principal Balance of, and interest due on, such Mortgage Loans listed on Schedule I attached hereto, and all other assets included or to be included
in the Trust Estate. 
  
 (b) The Seller may cause the deposit of
derivatives at any time into the Accredited Mortgage Loan Trust 2004-3 and any such deposited derivatives shall become part of the Trust Estate. 
  

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 (c) The parties hereto understand and agree that it is not intended that any Mortgage Loan be included in
the Trust Fund that is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, effective as of November 27, 2003, or The Home Loan Protection Act of New Mexico, effective as of January 1, 2004. 
  
 Section 2.02. Reserved. 
  
 Section 2.03. Purchase Price. On the Closing Date, as full
consideration for the Seller’s sale of the Mortgage Loans to the Trust, the Underwriters, on behalf of the Trust, will deliver to, or at the direction of, the Seller an amount in cash equal to $974,040,654.04. Additionally, the Seller will
receive the Certificates issued by the Trust pursuant to the Trust Agreement. 
  
 Section 2.04. Possession of Mortgage Files; Access to Mortgage Files. 
  
 (a) Upon the receipt by the Seller, or its designee, of the purchase price for the Mortgage Loans set forth in Section 2.03 hereof, the ownership of each
Mortgage Note, each Mortgage and the contents of the Mortgage File related to each Mortgage Loan will be vested in the Trust, and will be pledged to the Indenture Trustee, for the benefit of the Noteholders. 
  
 (b) Pursuant to Section 2.05 hereof, the Seller has delivered, or caused to
be delivered the Indenture Trustee’s Mortgage File related to each Mortgage Loan to the Indenture Trustee. 
  
 (c) The Indenture Trustee will hold the Indenture Trustee’s Mortgage Files in trust pursuant to the terms of the Indenture for the benefit of all
present and future Noteholders. 
  
 (d) Consistent with the terms
of the Indenture, the Indenture Trustee shall afford the Seller, the Sponsor, the Trust, the Master Servicer and the Backup Servicer reasonable access to all records and documentation regarding the Mortgage Loans relating to this Agreement, such
access being afforded at customary charges, upon reasonable prior written request and during normal business hours at the offices of the Indenture Trustee. 
  
 (e) In the event that the Mortgage Loans are required to be recorded in accordance with the provisions of Section 2.05, no later than the fifth Business
Day of each fourth month, commencing in January 2005, the Indenture Trustee shall deliver to the Master Servicer a report dated as of the first day of such month, identifying those Mortgage Loans for which it has not yet received (i) an original
recorded Mortgage or a copy thereof certified to be true and correct by the public recording office in possession of such Mortgage or (ii) an original recorded Assignment of Mortgage to the Indenture Trustee and any required intervening Assignments
of Mortgage or a copy thereof certified to be a true and correct copy by the public recording office in possession of such Assignment of Mortgage. 
  
 Section 2.05. Delivery of Mortgage Loan Documents. (a) In connection with the transfer and assignment of the Mortgage Loans, the Seller shall, on
or before the Closing Date, deliver, or cause to be delivered, to the Indenture Trustee (as pledgee of the Trust pursuant to the Indenture), the following documents or instruments constituting the Indenture Trustee’s Mortgage File with respect
to each Mortgage Loan so transferred or assigned: 
  
 (i) the original Mortgage Note, endorsed without recourse in blank or to “Deutsche Bank National Trust Company, as Indenture Trustee under the Indenture dated as of August 1, 2004, Accredited Mortgage Loan Trust 2004-3” by the
Sponsor, including all intervening endorsements showing a complete chain of endorsement; 
  

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 (ii) the related original Mortgage with evidence of recording indicated thereon or a copy
thereof certified by the applicable recording office and if the Mortgage Loan is registered on the MERS System, such Mortgage or an assignment of the mortgage shall reflect MERS as the mortgagee of record and shall include the MIN for such Mortgage
Loan; 
  
 (iii) each intervening mortgage
assignment, with evidence of recording indicated thereon or if the original is not available, a copy thereof certified by the applicable recording office, if any, showing a complete chain of assignment from the originator of the related Mortgage
Loan to the Sponsor (or to MERS, if the Mortgage Loan is registered on the MERS System), and noting the presence of a MIN (if the Mortgage Loan is registered on the MERS System), which assignment may, at the Sponsor’s option, be combined with
the assignment referred to in subpart (iv) hereof, in which case it must be in recordable form, but need not have been previously recorded); 
  
 (iv) unless the Mortgage Loan is registered on the MERS System, a mortgage assignment in recordable form (which, if acceptable for
recording in the relevant jurisdiction as evidenced by an Opinion of Counsel addressed to the Indenture Trustee, may be included in a blanket assignment or assignments) of each Mortgage from the Sponsor to the Indenture Trustee; 
  
 (v) originals of all assumption, modification and
substitution agreements in those instances where the terms or provisions of a Mortgage or Mortgage Note have been modified or such Mortgage or Mortgage Note has been assumed (if any); and 
  
 (vi) an original title insurance policy or title opinion (or
(A) a copy of the title insurance policy or title opinion, or (B) the related binder, commitment or preliminary report, or copy thereof in which case the Sponsor hereby certifies that the original Mortgage has been delivered to the title insurance
company that issued such binder, commitment or preliminary report). 
  
 In instances where the original recorded Mortgage or any intervening mortgage assignment or a completed assignment of the Mortgage in recordable form cannot be delivered by the Sponsor to the Indenture Trustee prior to or concurrently with
the execution and delivery of this Agreement due to a delay in connection with recording, the Sponsor may: 
  
 (x) in lieu of delivering such original recorded Mortgage or intervening mortgage assignment, deliver to the Indenture Trustee, a copy
thereof and the Sponsor hereby certifies that the original Mortgage has been delivered to a title insurance company for recordation after receipt of its policy of title insurance or the related binder, commitment or preliminary report therefor; and

  

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 (y) with respect to clause (iv) above, in lieu of delivering the completed assignment in
recordable form, deliver to the Indenture Trustee, the assignment in recordable form, otherwise complete except for recording information. 
  
 The Indenture Trustee is hereby authorized and directed, upon an Event of Default and subject to subsection (b) below, with respect to each assignment described in
Section 2.05(a)(iv) hereof, to endorse such assignment as follows: “Deutsche Bank National Trust Company, as Indenture Trustee under the Indenture dated as of August 1, 2004, Accredited Mortgage Loan Trust 2004-3.” 
  
 (b) As promptly as practicable, but in any event within thirty (30) days from
the Closing Date, the Sponsor shall promptly submit, or cause to be submitted for recording in the appropriate public office for real property records, each assignment referred to in Section 2.05(a)(iv); provided, that the Sponsor need not cause to
be recorded any assignment which (i) is registered on the MERS System, or (ii) relates to a Mortgage Loan in any jurisdiction under the laws of which, as evidenced by an Opinion of Counsel delivered by the Sponsor (at the Sponsor’s expense) to
the Indenture Trustee, acceptable to the Rating Agencies, the recordation of such assignment is not necessary to protect the Indenture Trustee’s, the Noteholders’ and the Certificates’ interest in the related Mortgage Loan. The
Indenture Trustee, shall retain a copy of each assignment submitted for recording. In the event that any such assignment is lost or returned unrecorded because of a defect therein, the Sponsor shall promptly prepare a substitute assignment or cure
such defect, as the case may be, and thereafter the Sponsor shall submit each such assignment for recording. The costs relating to the delivery and recordation of the documents in connection with the Mortgage Loans as specified in this Article II
shall be borne by the Sponsor. With respect to Mortgage Loans (i) not registered on the MERS System, or (ii) not covered by an Opinion of Counsel described in this section 2.05(b) to the extent that assignments of mortgage have not been recorded
within one year after the Closing Date, the Seller shall, and if the Seller fails to, then the Sponsor shall be obligated to repurchase such Mortgage Loans in accordance with the provisions of Section 4.02. 
  
 In connection with the assignment of any Mortgage Loan registered on the MERS
System, promptly after the Closing Date, the Sponsor will cause, at its own expense, the MERS System to indicate that such Mortgage Loan has been assigned to the Indenture Trustee for the benefit of the Noteholders by entering (a) the Indenture
Trustee’s Org ID in the “Investor” field which identifies the Indenture Trustee and (b) in the “Pool” field a code which identifies the securitization serial number of the Notes issued in connection with such Mortgage Loans.
The Sponsor and the Master Servicer will not alter the entries referenced in this paragraph with respect to any such Mortgage Loan during the term of this Agreement unless and until such Mortgage Loan is repurchased or otherwise in accordance with
the terms of this Agreement. 
  
 (c) The Sponsor shall, within
five (5) Business Days after the receipt thereof, deliver, or cause to be delivered, to the Indenture Trustee: (i) the original recorded Mortgage and related power of attorney, if any, in those instances where a copy thereof certified by the Sponsor
was delivered to the Indenture Trustee; (ii) the original recorded assignment of Mortgage from the last endorsee to the Indenture Trustee, which, together with any intervening assignments of Mortgage, evidences a complete chain of assignment from
the originator of the Mortgage Loan to the Indenture Trustee, in those instances where copies of such assignments certified by the Sponsor were delivered to the Indenture Trustee; and (iii) the title insurance policy or title opinion required in
Section 2.05(a)(vi). 
  

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 Notwithstanding anything to the contrary contained in this Section 2.05, in those instances where the
public recording office retains the original Mortgage, power of attorney, if any, assignment or assignment of Mortgage after it has been recorded or such original has been lost, the Sponsor shall be deemed to have satisfied its obligations hereunder
upon delivery to the Indenture Trustee, of a copy of such Mortgage, power of attorney, if any, assignment or assignment of Mortgage certified by the public recording office to be a true copy of the recorded original thereof. 
  
 From time to time the Sponsor may forward, or cause to be forwarded, to the
Indenture Trustee, additional original documents evidencing any assumption or modification of a Mortgage Loan. 
  
 (d) All original documents relating to the Mortgage Loans that are not required to be delivered to the Indenture Trustee, pursuant to Section 2.05(a)
hereof are, and shall be, held by the Master Servicer, the Sponsor or the Seller, as the case may be, in trust for the benefit of the Indenture Trustee, on behalf of the Noteholders. In the event that any such original document is required pursuant
to the terms of this Section 2.05 to be a part of an Indenture Trustee’s Mortgage File, such document shall be delivered promptly to the Indenture Trustee. From and after the sale of the Mortgage Loans to the Trust pursuant hereto, to the
extent that the last assignee thereof retains title of record to any Mortgage Loans prior to the vesting of legal title in the Trust, such title shall be retained in trust for the Trust as the owner of the Mortgage Loans, and the Indenture Trustee,
as the pledgee of the Trust under the Indenture. In acting as custodian of any original document which is part of the Indenture Trustee’s Mortgage Files, the Master Servicer agrees further that it does not and will not have or assert any
beneficial ownership interest in the related Mortgage Loans or the Mortgage Files. Promptly upon the Master Servicer’s receipt of any such original document, the Master Servicer, on behalf of the Trust, shall mark conspicuously each such
original document, and its master data processing records with a legend evidencing that the Trust has purchased the related Mortgage Loan and all right and title thereto and interest therein, and pledged such Mortgage Loan and all right and title
thereto and interest therein to the Indenture Trustee, on behalf of the Noteholders. 
  
 Section 2.06. Acceptance of the Trust Estate; Certain Substitutions; Certification by the Indenture Trustee. (a) The Indenture Trustee is authorized and directed to, and agrees to, do the following: 
  
 (i) execute and deliver to the Seller, the Sponsor, the
Master Servicer and the Backup Servicer, on or prior to the Closing Date with respect to each Mortgage Loan transferred on such date, an acknowledgement of receipt, in the form attached as Exhibit C hereto, of the original Mortgage Note as
required to be included in the Indenture Trustee’s Mortgage File (with any exceptions noted) and declares that it will hold such documents and any amendments, replacements or supplements thereto, as well as any other assets included in the
definition of Trust Estate and delivered to the Indenture Trustee, subject to the conditions set forth in the Indenture, for the benefit of the Noteholders. 
  

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 (ii) to review (or cause to be reviewed) each Indenture Trustee’s Mortgage File
within sixty (60) days after the Closing Date (or, with respect to any Qualified Substitute Mortgage Loans, within sixty (60) days after receipt thereof), and to deliver to the Master Servicer, the Backup Servicer, the Seller and the Sponsor a
certification, in the form attached hereto as Exhibit D, to the effect that, except as otherwise noted, as to each Mortgage Loan listed in the related Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan
specifically identified in such certification as not covered by such certification), (i) all documents specified in Section 2.05(a)(i)-(iv) and (vi) are in its possession, (ii) each such document has been reviewed by it and appears, on its face, not
to have been mutilated, damaged, torn or otherwise physically altered (handwritten additions, changes or corrections shall not constitute physical alteration if they reasonably appear to have been initialed), appears regular on its face and relates
to such Mortgage Loan, and (iii) based on its examination and only as to the foregoing documents, the information set forth on the Mortgage Loan Schedule with respect to items (i), (ii) (with respect to property address only, excluding zip code),
(iii) and (vi) of the definition of “Mortgage Loan Schedule” accurately reflects the information set forth in the Indenture Trustee’s Mortgage File delivered on such date; providedhowever, no certification of the
Indenture Trustee shall constitute a determination by the Indenture Trustee of the proper form, adequacy or enforceability of any document included in the Indenture Trustee’s Mortgage File. 
  
 (iii) to review (or cause to be reviewed) each Indenture
Trustee’s Mortgage File within one hundred eighty (180) days after the Closing Date (or, with respect to any Qualified Substitute Mortgage Loans, within one hundred eighty (180) days after receipt thereof), and to deliver to the Master
Servicer, the Backup Servicer and the Sponsor a certification in the form attached hereto as Exhibit E to the effect that, except as otherwise noted, as to each Mortgage Loan listed in the related Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or any Mortgage Loan specifically identified in such certification as not covered by such certification), (i) all documents specified in Section 2.05(a)(i)-(iv) and (vi) are in its possession, (ii) each such document has
been reviewed by it and has not been mutilated, damaged, torn or otherwise physically altered (handwritten additions, changes or corrections shall not constitute physical alteration if they reasonably appear to be initialed by the Mortgagor),
appears regular on its face and relates to such Mortgage Loan, and (iii) based on its examination and only as to the foregoing documents, the information set forth in items (i), (ii) (with respect to property address only, excluding zip code), (iii)
and (vi) of the definition of “Mortgage Loan Schedule” accurately reflects the information set forth in the Indenture Trustee’s Mortgage File delivered on such date. 
  
 In performing any such review, the Indenture Trustee may conclusively rely on the Sponsor as to the purported genuineness of
any such document and any signature thereon. It is understood that the scope of the Indenture Trustee’s review of the Indenture Trustee’s Mortgage Files is limited solely to confirming that the documents listed in Section 2.05 have been
executed and received and relate to the Indenture Trustee’s Mortgage Files identified in the related Mortgage Loan Schedule. The Indenture Trustee shall be under no duty or obligation to inspect, review or examine any such documents,
instruments, certificates or other papers to determine that they are genuine, enforceable, or appropriate for the represented purpose or that they are other than what they purport to be on their face. 
  

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 (b) If the Indenture Trustee during the process of reviewing the Indenture Trustee’s Mortgage Files
finds any document constituting a part of a Indenture Trustee’s Mortgage File which is not executed, has not been received, is unrelated to the Mortgage Loan identified in the related Mortgage Loan Schedule, or does not conform to the
requirements of Section 2.05 or the description thereof as set forth in the related Mortgage Loan Schedule, the Indenture Trustee shall promptly so notify the Master Servicer, the Backup Servicer, and the Sponsor. Upon receipt of such notice
respecting such defect, the Seller and the Sponsor shall have a sixty (60) day period after such notice within which to correct or cure any such defect, or if the Master Servicer determines that the defect materially and adversely affects the value
of the related Mortgage Loan or the interest of the Noteholders in the related Mortgage Loan, to either (i) substitute in lieu of such Mortgage Loan a Qualified Substitute Mortgage Loan in the manner and subject to the conditions set forth in this
Section 2.06 or (ii) purchase such Mortgage Loan at a purchase price equal to the Loan Repurchase Price. Upon receipt by the Indenture Trustee of two copies of a certification, in the form attached hereto as Exhibit F, of a Servicing Officer
of such substitution or purchase and, in the case of a substitution, upon receipt by the Indenture Trustee, of the related Indenture Trustee’s Mortgage File, and the deposit of the Loan Repurchase Price, in the case of a purchase, or the
Substitution Adjustment, if any, in connection with a substitution, in the Collection Account, the Indenture Trustee shall release to the Master Servicer for release to the Seller or the Sponsor, as applicable, the related Indenture Trustee’s
Mortgage File and the Indenture Trustee shall execute, without recourse, and deliver such instruments of transfer furnished by the Seller or the Sponsor as may be necessary to transfer such Mortgage Loan to the Seller or the Sponsor, as applicable.

  
 Section 2.07. Grant of Security Interest. (a) It is
intended that the conveyance of the Mortgage Loans and other property by the Seller to the Trust as provided in this Article II be, and be construed for all purposes other than tax and accounting purposes as, a sale of the Mortgage Loans and such
other property by the Seller to the Trust. It is, for all purposes other than tax and accounting purposes further, not intended that such conveyance be deemed a pledge of the Mortgage Loans or such other property by the Seller to the Trust to secure
a debt or other obligation of the Seller. However, in the event that the Mortgage Loans or any of such other property are held to be property of the Seller, or if for any reason this Agreement is held or deemed to create a security interest in the
Mortgage Loans or any of such other property, then it is intended that: (i) this Agreement shall also be deemed to be a security agreement within the meaning of the Uniform Commercial Code; (ii) the conveyance provided for in this Article II shall
be deemed to be a grant by the Seller to the Trust of a security interest in all of the Seller’s right, title and interest in and to the Mortgage Loans and such other property and all amounts payable to the holders of the Mortgage Loans in
accordance with the terms thereof and all proceeds of the conversion, voluntary or involuntary, of the foregoing into cash, instruments, securities or other property, including, without limitation, all amounts from time to time held or invested in
the Accounts whether in the form of cash, instruments, securities or other property; (iii) the possession by the Indenture Trustee, of the Mortgage Notes and such other items of property as constitute instruments, money, negotiable documents or
chattel paper shall be deemed to be “possession by the secured party” for purposes of perfecting the security interest pursuant to the Uniform Commercial Code; and (iv) notifications to persons holding such 
  

 8 

 property, and acknowledgments, receipts or confirmations from persons holding such property, shall be deemed
notifications to, or acknowledgments, receipts or confirmations from financial intermediaries, bailees or agents, as applicable, of the Indenture Trustee for the purpose of perfecting such security interest under applicable law. The Seller, the
Sponsor, the Master Servicer, on behalf of the Trust and the Indenture Trustee, shall, to the extent consistent with this Agreement, take such actions as may be reasonably necessary to ensure that, if this Agreement were deemed to create a security
interest in the Mortgage Loans or any of such other property, such security interest would be deemed to be a perfected security interest of first priority under applicable law and will be maintained as such throughout the term of this Agreement.

  
 (b) The Seller, the Sponsor, the Master Servicer and the
Backup Servicer shall take no action inconsistent with the Trust’s ownership of the Trust Estate and each shall indicate or shall cause to be indicated in its records and records held on its behalf that ownership of each Mortgage Loan and the
other assets in the Trust Estate is vested in the Trust, as owner, and is pledged to the Indenture Trustee, for the benefit of the Noteholders pursuant to the terms of the Indenture. The Indenture Trustee is authorized to act, pursuant to the terms
of this Agreement for the benefit of the Noteholders and shall be authorized to act at the direction of such parties. In addition, the Seller, the Sponsor, the Master Servicer and the Backup Servicer shall respond to any inquiries from third parties
with respect to ownership of a Mortgage Loan or any other asset in the Trust Estate by stating that it is not the owner of such asset and that the Trust is the owner of such Mortgage Loan or other asset in the Trust Estate, which is pledged to the
Indenture Trustee, for the benefit of the Noteholders. 
  
 Section
2.08. Further Action Evidencing Assignments. (a) The Master Servicer agrees that, from time to time, at its expense, it shall cause the Sponsor or Seller, as the case may be, to, and each of the Sponsor and Seller agree that it shall,
promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or appropriate, or that the Master Servicer or the Indenture Trustee may reasonably request, in order to perfect, protect or more
fully evidence the transfer of ownership of the Mortgage Loans and other assets in the Trust Estate or to enable the Indenture Trustee, to exercise or enforce any of its rights hereunder. Without limiting the generality of the foregoing, the Master
Servicer, the Sponsor and the Seller shall, upon the request of the Master Servicer or the Indenture Trustee execute and file (or cause to be executed and filed) such real estate filings, financing or continuation statements, or amendments thereto
or assignments thereof, and such other instruments or notices, as may be necessary or appropriate. 
  
 (b) Each of the Sponsor and the Seller hereby grants to the Master Servicer, the Backup Servicer and the Indenture Trustee powers of attorney to execute
all documents on its behalf under this Agreement as may be necessary or desirable to effectuate the foregoing. 
  
 Section 2.09. Assignment of Agreement. The Sponsor, the Seller and the Master Servicer hereby acknowledge and agree that the Trust may assign its
interest under this Agreement to the Indenture Trustee, for the benefit of the Noteholders, as may be required to effect the purposes of the Indenture, without further notice to, or consent of, the Sponsor or the Master Servicer, and the Indenture
Trustee shall succeed to such of the rights of the Trust hereunder as shall be so assigned. The Trust shall, pursuant to the Indenture, assign all of its right, title and interest in and to the Mortgage Loans and its right to exercise the remedies
created 
  

 9 

 by Section 4.02 of this Agreement for breaches of the representations, warranties, agreements and covenants of the
Sponsor contained in Sections 3.02 and 4.01 of this Agreement, assign such right, title and interest to the Indenture Trustee, for the benefit of the Noteholders. The Sponsor agrees that, upon such assignment to the Indenture Trustee, such
representations, warranties, agreements and covenants will run to and be for the benefit of the Indenture Trustee and the Indenture Trustee may enforce, without joinder of the Sponsor or the Trust, the repurchase obligations of the Sponsor set forth
herein with respect to breaches of such representations, warranties, agreements and covenants. 
  
 ARTICLE III 
  
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
  
 Section 3.01. Representations, Warranties and Covenants of the Master Servicer. The Master Servicer hereby represents, warrants and covenants to the Indenture Trustee, the Seller, the Sponsor, the Trust, the Backup Servicer and the
Noteholders as of the Closing Date and during the term of this Agreement that: 
  
 (a) The Master Servicer is duly organized, validly existing and in good standing under the laws of its state of incorporation and has the power to own its assets and to transact the business in which it is currently
engaged. The Master Servicer is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which the character of the business transacted by it or properties owned or leased by it or the performance of its
obligations hereunder requires such qualification and in which the failure so to qualify could reasonably be expected to have a material adverse effect on the business, properties, assets, or condition (financial or other) of the Master Servicer or
the performance of its obligations hereunder. 
  
 (b) The Master
Servicer has the power and authority to make, execute, deliver and perform this Agreement and all of the transactions contemplated under this Agreement, and has taken all necessary corporate action to authorize the execution, delivery and
performance of this Agreement, and assuming the due authorization, execution and delivery hereof by the other parties hereto constitutes, or will constitute, the legal, valid and binding obligation of the Master Servicer, enforceable in accordance
with its terms, except as enforcement of such terms may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally, and by general equity principles (regardless
of whether such enforcement is considered in a proceeding in equity or at law). 
  
 (c) The Master Servicer is not required to obtain the consent of any other party or any consent, license, approval or authorization from, or registration or declaration with, any governmental authority, bureau or
agency which consent already has not been obtained in connection with the execution, delivery, performance, validity or enforceability of this Agreement, except such as have been obtained prior to the Closing Date. 
  
 (d) The execution, delivery and performance of this Agreement by the Master
Servicer will not violate any provision of any existing law or regulation or any order or decree of any court or the charter or bylaws of the Master Servicer, or constitute a breach of any mortgage, indenture, contract or other Agreement to which
the Master Servicer is a party or by which it may be bound. 
  

 10 

 (e) Except as set forth in the Prospectus Supplement under the heading “Risk Factors,”
there is no action, suit, proceeding or investigation pending or to Master Servicer’s knowledge threatened against the Master Servicer which, either in any one instance or in the aggregate, is, in the Master Servicer’s judgment, likely to
result in any material adverse change in the business, operations, financial condition, properties, or assets of the Master Servicer, or in any material impairment of the right or ability of the Master Servicer to carry on its business substantially
as now conducted, or in any material liability on the part of the Master Servicer, or which would draw into question the validity of this Agreement, the Notes, or the Mortgage Loans or of any action taken or to be taken in connection with the
obligations of the Master Servicer contemplated herein or therein, or which would be likely to impair materially the ability of the Master Servicer to perform its obligations hereunder. 
  
 (f) Neither this Agreement nor any statement, report, or other document furnished by the Master Servicer pursuant to this
Agreement or in connection with the transactions contemplated hereby, including, without limitation, the sale or placement of the Notes, contains any untrue material statement of fact provided by or on behalf of the Master Servicer or omits to state
a material fact necessary to make the statements provided by or on behalf of the Master Servicer contained herein or therein not misleading. 
  
 (g) The Master Servicer does not believe, nor does it have any reason or cause to believe, that it cannot perform each and every covenant contained in
this Agreement. 
  
 (h) The Master Servicer is not an
“investment company” or a company “controlled by an investment company,” within the meaning of the Investment Company Act of 1940, as amended. 
  
 (i) The Master Servicer shall take all necessary steps to maintain the Indenture Trustee’s perfection and priority in
the Mortgage Loans. 
  
 (j) The Master Servicer will fully
furnish, in accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information (i.e., favorable and unfavorable) on its borrower credit files to Equifax, Experian, and Trans Union Credit Information
Company (three of the credit repositories), on a monthly basis. 
  
 (k) The Master Servicer is a member of MERS in good standing, and will comply in all material respects with the rules and procedures of MERS in connection with the servicing of the Mortgage Loans that are registered with MERS. 

 
 It is understood and agreed that the representations, warranties and
covenants set forth in this Section 3.01 shall survive the delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and inure to the benefit of the Indenture Trustee. 
  

 11 

 Section 3.02. Representations, Warranties and Covenants of the Sponsor. The Sponsor hereby
represents, warrants and covenants to the Indenture Trustee, the Seller, the Trust, the Backup Servicer and the Master Servicer that as of the date of this Agreement or as of such date specifically provided herein: 
  
 (a) The Sponsor is a corporation duly organized, validly existing and in
good standing under the laws of the State of California. 
 (b) The Sponsor has the corporate power and authority to execute, deliver and
perform, and to enter into and consummate the transactions contemplated by this Agreement. 
  
 (c) This Agreement has been duly and validly authorized, executed and delivered by the Sponsor, all requisite corporate action having been taken, and, assuming the due authorization, execution and delivery hereof by
the other parties hereto, constitutes or will constitute the legal, valid and binding agreement of the Sponsor, enforceable against the Sponsor in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally, and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). 
  
 (d) No consent, approval, authorization or order of or registration or filing
with, or notice to, any governmental authority or court is required for the execution, delivery and performance of or compliance by the Sponsor with this Agreement or the consummation by the Sponsor of any of the transactions contemplated hereby,
except as have been made on or prior to the Closing Date. 
  
 (e)
None of the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby or thereby, or the fulfillment of or compliance with the terms and conditions of this Agreement, (i) conflicts or will conflict with or
results or will result in a breach of, or constitutes or will constitute a default or results or will result in an acceleration under (A) the articles of incorporation or bylaws of the Sponsor, or (B) of any term, condition or provision of any
material indenture, deed of trust, contract or other agreement or instrument to which the Sponsor or any of its subsidiaries is a party or by which it or any of its subsidiaries is bound; (ii) results or will result in a violation of any law, rule,
regulation, order, judgment or decree applicable to the Sponsor of any court or governmental authority having jurisdiction over the Sponsor or its subsidiaries; or (iii) results in the creation or imposition of any lien, charge or encumbrance which
would have a material adverse effect upon the Mortgage Loans or any documents or instruments evidencing or securing the Mortgage Loans. 
  
 (f) Except as set forth in the Prospectus Supplement under the heading “Risk Factors,” there are no actions, suits or proceedings before
or against or investigations of, the Sponsor pending, or to the knowledge of the Sponsor, threatened, before any court, administrative agency or other tribunal, and no notice of any such action, which, in the Sponsor’s reasonable judgment,
might materially and adversely affect the performance by the Sponsor of its obligations under this Agreement, or the validity or enforceability of this Agreement. 
  

 12 

 (g) The Sponsor is not in default with respect to any order or decree of any court or any order,
regulation or demand of any federal, state, municipal or governmental agency that may materially and adversely affect its performance hereunder. 
  
 It is understood and agreed that the representations, warranties and covenants set forth in this Section 3.02 may not be waived and shall survive delivery
of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the benefit of the Indenture Trustee. 
  
 Section 3.03. Representations, Warranties and Covenants of the Backup Servicer. The Backup Servicer hereby represents, warrants and covenants to
the Indenture Trustee, the Trust, the Master Servicer, the Seller and the Sponsor that as of the date of this Agreement: 
  
 (a) The Backup Servicer is a Texas limited partnership duly organized, validly existing and in good standing under the laws of the State of Texas.

  
 (b) The Backup Servicer has the limited partnership power and
authority to execute, deliver and perform, and to enter into and consummate transactions contemplated by this Agreement. 
  
 (c) This Agreement has been duly and validly authorized, executed and delivered by the Backup Servicer, all requisite limited partnership action having
been taken, and, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes or will constitute the legal, valid and binding agreement of the Backup Servicer, enforceable against the Backup Servicer in
accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally, and by general equity principles (regardless
of whether such enforcement is considered in a proceeding in equity or at law). 
  
 (d) No consent, approval, authorization or order of or registration or filing with, or notice to, any governmental authority or court is required for the execution, delivery and performance of or compliance by the
Backup Servicer with this Agreement or the consummation by the Backup Servicer of any of the transactions contemplated hereby, except as have been made on or prior to the Closing Date. 
  
 (e) None of the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby or
thereby, or the fulfillment of or compliance with the terms and conditions of this Agreement, (i) conflicts or will conflict with or results or will result in a breach of, or constitutes or will constitute a default or results or will result in an
acceleration under (A) the certificate of incorporation or bylaws of the Backup Servicer, or (B) of any term, condition or provision of any material indenture, deed of trust, contract or other agreement or instrument to which the Backup Servicer or
any of its subsidiaries is a party or by which it or any of its subsidiaries is bound; (ii) results or will result in a violation of any law, rule, regulation, order, judgment or decree applicable to the Backup Servicer of any court or governmental
authority having jurisdiction over the Backup Servicer or its subsidiaries; or (iii) results in the creation or imposition of any lien, charge or encumbrance which would have a material adverse effect upon the Mortgage Loans or any documents or
instruments evidencing or securing the Mortgage Loans; 
  

 13 

 (f) There are no actions, suits or proceedings before or against or investigations of, the Backup
Servicer pending, or to the knowledge of the Backup Servicer, threatened, before any court, administrative agency or other tribunal, and no notice of any such action, which, in the Backup Servicer’s reasonable judgment, might materially and
adversely affect the performance by the Backup Servicer of its obligations under this Agreement, or the validity or enforceability of this Agreement; and 
  
 (g) The Backup Servicer is not in default with respect to any order or decree of any court or any order, regulation or demand of any federal, state,
municipal or governmental agency that may materially and adversely affect its performance hereunder. 
  
 (h) The Backup Servicer is a member of MERS in good standing, and will comply in all material respects with the rules and procedures of MERS in connection
with the servicing of the Mortgage Loans that are registered with MERS. 
  
 It is understood and agreed that the representations, warranties and covenants set forth in this Section 3.03 shall survive delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the
benefit of the Indenture Trustee. 
  
 Section 3.04.
Representations, Warranties and Covenants of the Indenture Trustee. The Indenture Trustee hereby represents, warrants and covenants to the Backup Servicer, the Trust, the Master Servicer, the Seller and the Sponsor that as of the date of this
Agreement or as of such date specifically provided herein: 
  
 (a) The Indenture Trustee is a national banking association duly organized, validly existing and in good standing under the laws of the United States of America. 
  
 (b) The Indenture Trustee has the requisite power and authority to execute, deliver and perform, and to enter into and
consummate transactions contemplated by this Agreement. 
  
 (c)
This Agreement has been duly and validly authorized, executed and delivered by the Indenture Trustee, all requisite action having been taken, and, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes
or will constitute the legal, valid and binding agreement of the Indenture Trustee, enforceable against the Indenture Trustee in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting the rights of creditors generally, and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). 
  
 (d) No consent, approval, authorization or order of or registration or filing
with, or notice to, any governmental authority or court is required for the execution, delivery and performance of or compliance by the Indenture Trustee with this Agreement or the consummation by the Indenture Trustee of any of the transactions
contemplated hereby, except as have been made on or prior to the Closing Date; 
  

 14 

 (e) None of the execution and delivery of this Agreement, the consummation of the transactions
contemplated hereby or thereby, or the fulfillment of or compliance with the terms and conditions of this Agreement, (i) conflicts or will conflict with or results or will result in a breach of, or constitutes or will constitute a default or results
or will result in an acceleration under (A) the articles of association or bylaws of the Indenture Trustee, or (B) to the best of its knowledge, of any term, condition or provision of any material indenture, deed of trust, contract or other
agreement or instrument to which the Indenture Trustee is a party or by which it is bound; or (ii) results or will result in a violation of any statute, rule, regulation, order, judgment or decree applicable to the Indenture Trustee of any court or
governmental authority having jurisdiction over the Indenture Trustee or its subsidiaries which violation would materially and adversely affect the Indenture Trustee’s performance of its duties hereunder; and 
  
 (f) There are no actions, suits or proceedings before or against or
investigations of, the Indenture Trustee, pending or to the knowledge of the Indenture Trustee threatened, before any court, administrative agency or other tribunal, and no notice of any such action, which, in the Indenture Trustee’s reasonable
judgment, would materially and adversely affect the performance by the Indenture Trustee of its obligations under this Agreement, or the validity or enforceability of this Agreement. 
  
 It is understood and agreed that the representations, warranties and covenants set forth in this Section 3.04 shall survive
delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee. 
  
 Section 3.05. Covenants and Representations of the Sponsor and Master Servicer Regarding Prepayment Charges. 
  
 (a) The Master Servicer covenants that it will not waive any Prepayment Charge or part of a Prepayment Charge unless in connection with a Mortgage Loan
that is in default or for which a default is reasonably foreseeable. 
  
 (b) The Sponsor hereby represents and warrants that the information set forth in the Prepayment Charge Schedule is complete, true and correct in all material respects at the date or dates respecting which such information is furnished and
each Prepayment Charge is permissible and enforceable in accordance with its terms (except to the extent that the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to
creditors’ rights generally) under applicable law. 
  
 (c)
Upon discovery by the Sponsor or the Indenture Trustee of a breach of the foregoing, the party discovering such breach shall give prompt written notice to the other parties. Within 60 days of the earlier of discovery by the Master Servicer or
receipt of notice by the Master Servicer of breach, the Master Servicer shall cure such breach in all material respects. If the covenant made by the Master Servicer in clause (a) above is breached the Master Servicer must pay into the Collection
Account the amount of the waived Prepayment Charge. If the representation made by the Sponsor in clause (b) above is breached, the Sponsor must pay into the Collection Account the amount of the scheduled Prepayment Charge, less any amount previously
collected and paid by the Master Servicer into the Collection Account. The foregoing obligations of the Master Servicer and the Sponsor shall be the sole and exclusive remedies for a breach of this Section 3.05(a) or (b). 
  

 15 

 Section 3.06. Representations, Warranties and Covenants of the Seller. The Seller hereby
represents, warrants and covenants to the Indenture Trustee, the Trust, the Sponsor, the Backup Servicer and the Master Servicer that as of the date of this Agreement or as of such date specifically provided herein: 
  
 (a) The Seller is a Maryland real estate investment trust duly organized,
validly existing and in good standing under the laws of the State of Maryland. 
  
 (b) The Seller has the trust power and authority to convey the Mortgage Loans and to execute, deliver and perform, and to enter into and consummate the transactions contemplated by this Agreement. 
  
 (c) This Agreement has been duly and validly authorized, executed and
delivered by the Seller, all requisite corporate action having been taken, and, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes or will constitute the legal, valid and binding agreement of the
Seller, enforceable against the Seller in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally,
and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). 
  
 (d) No consent, approval, authorization or order of or registration or filing with, or notice to, any governmental authority or court is required for the
execution, delivery and performance of or compliance by the Seller with this Agreement or the consummation by the Seller of any of the transactions contemplated hereby, except as have been made on or prior to the Closing Date. 
  
 (e) None of the execution and delivery of this Agreement, the consummation of
the transactions contemplated hereby or thereby, or the fulfillment of or compliance with the terms and conditions of this Agreement, (i) conflicts or will conflict with or results or will result in a breach of, or constitutes or will constitute a
default or results or will result in an acceleration under (A) the certificate of trust or bylaws of the Seller, or (B) of any term, condition or provision of any material indenture, deed of trust, contract or other agreement or instrument to which
the Seller or any of its subsidiaries is a party or by which it or any of its subsidiaries is bound; (ii) results or will result in a violation of any law, rule, regulation, order, judgment or decree applicable to the Seller of any court or
governmental authority having jurisdiction over the Seller or its subsidiaries; or (iii) results in the creation or imposition of any lien, charge or encumbrance which would have a material adverse effect upon the Mortgage Loans or any documents or
instruments evidencing or securing the Mortgage Loans. 
  
 (f)
Except as set forth in the Prospectus Supplement under the heading “Risk Factors,” there are no actions, suits or proceedings before or against or investigations of, the Seller pending, or to the knowledge of the Seller, threatened,
before any court, administrative agency or other tribunal, and no notice of any such action, which, in the Seller’s reasonable judgment, might materially and adversely affect the performance by the Seller of its obligations under this
Agreement, or the validity or enforceability of this Agreement. 
  

 16 

 (g) The Seller is not in default with respect to any order or decree of any court or any order,
regulation or demand of any federal, state, municipal or governmental agency that may materially and adversely affect its performance hereunder. 
  
 (h) The Seller hereby covenants that it will file a federal income tax return for its taxable year ending December 31, 2004 on Internal Revenue Service
Form 1120 REIT on which the Seller elects to be taxed as a REIT. The Seller hereby represents that it has been organized in conformity with the requirements for qualification for taxation as a REIT and hereby covenants that it at all times the
Seller owns Trust Certificates, either directly, or indirectly through one or more Qualified REIT Subsidiaries, will conduct its operations so as to qualify as a REIT. If, at any time the Seller owns Trust Certificates, either directly, or
indirectly through one or more Qualified REIT Subsidiaries, the Seller determines that is has failed to qualify as a REIT, the Seller shall, within 30 days of such discovery, notify the Indenture Trustee of such failure. 
  
 It is understood and agreed that the representations, warranties and
covenants set forth in this Section 3.06 shall survive delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the benefit of the Indenture Trustee. 
  
 ARTICLE IV 
  
 THE MORTGAGE LOANS 
  
 Section 4.01. Representations and Warranties Concerning the Mortgage
Loans. The Sponsor makes the following representations and warranties to the Seller, the Master Servicer, the Backup Servicer, the Indenture Trustee and the Trust as to the Mortgage Loans on which the Trust relies in accepting the Mortgage Loans
in trust and executing the Notes. All uses and variations of the word “enforceable” in this Section 4.01, shall be deemed to be qualified as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity (whether considered in a proceeding or action in equity or at law). With respect to the representations and warranties stated in Sections
4.01(i), (r), (ddd), (eee) and (fff), the Sponsor makes such representations and warranties on behalf of itself and the Seller. Such representations, warranties and covenants are made or deemed to be made as of the Closing Date. 

 
 (a) The information with respect to each Mortgage Loan set forth in the
Mortgage Loan Schedule is true and correct as of the Cut-Off Date, based on Cut-Off Date Principal Balances. 
  
 (b) Each Mortgage Loan is being serviced either (i) through the Master Servicer or (ii) a Person controlling, controlled by or under common control with
the Master Servicer and qualified to service mortgage loans. 
  

 17 

 (c) Each Mortgage Loan was underwritten or reunderwritten pursuant to the Underwriting Guidelines which
conform in all material respects to the description thereof set forth in the Prospectus Supplement. 
  
 (d) All of the original or certified documentation required to be delivered to the Indenture Trustee pursuant to this Agreement (including all material
documents related thereto) with respect to each Mortgage Loan has been or will be delivered to the Indenture Trustee in accordance with the terms of this Agreement. Each of the documents and instruments specified to be included therein has been duly
executed and in due and proper form, and each such document or instrument is in a form generally acceptable to prudent mortgage lenders that regularly originate or purchase mortgage loans comparable to the Mortgage Loans for sale to prudent
investors in the secondary market that invest in mortgage loans such as the Mortgage Loans. 
  
 (e) [Reserved]. 
  
 (f) Each
Mortgaged Property is improved by a single (one to four) family residential dwelling, which may include condominiums, individual units in a planned unit development and townhouses but shall not include cooperatives. 
  
 (g) No Mortgage Loan had an LTV at origination in excess of 100%. 

 
 (h) Each Mortgage Loan is a valid, subsisting enforceable and perfected
first lien as identified on the Mortgage Loan Schedule on the Mortgaged Property and subject in all cases to the exceptions to title set forth in the title insurance policy, with respect to the related Mortgage Loan, which exceptions are generally
acceptable to banking institutions in connection with their regular mortgage lending activities, and such other exceptions to which similar properties are commonly subject and which do not individually, or in the aggregate, materially and adversely
affect the benefits of the security intended to be provided by such Mortgage. At the time each Mortgage Loan was originated, the originator was a mortgagee approved by the Secretary of Housing and Urban Development pursuant to Sections 203 and 211
of the National Housing Act or a savings and loan association, a savings bank, a commercial bank or similar banking institution which was supervised and examined by a federal or state authority or a mortgage banker or broker licensed or authorized
to do business in the jurisdiction in which the related Mortgaged Property is located, applying the same standards and procedures used by the Sponsor in originating Mortgage Loans directly. 
  
 (i) Immediately prior to the transfer and assignment of the Mortgage Loans to
the Seller pursuant to the Contribution Agreement, the Sponsor held good and marketable title to, and was the sole owner of each Mortgage Loan, subject to no liens, charges, mortgages or encumbrances or rights of others, except liens of third party
warehouse lenders that will be released simultaneously with the transfer and assignment contemplated herein; and immediately prior to the transfer and assignment herein contemplated, the Seller held good and marketable title to, and was the sole
owner of, each Mortgage Loan subject to no liens, charges, mortgages, encumbrances or rights of others except liens which will be released simultaneously with such transfer and assignment; and immediately upon the transfer and assignment herein
contemplated, the Indenture Trustee will hold good and marketable title to, and be the sole owner of, each Mortgage Loan subject to no liens, charges, mortgages, encumbrances or rights of others except liens which will be released simultaneously
with such transfer and assignment. 
  

 18 

 (j) There is no delinquent tax or assessment lien on any Mortgaged Property, and each Mortgaged Property
is free of substantial damage and is in good repair. 
  
 (k) There
is no valid and enforceable right of rescission, set-off, defense or counterclaim to any Mortgage Note or Mortgage, including the obligation of the related Mortgagor to pay the unpaid principal of or interest on such Mortgage Note or the defense of
usury, nor will the operation of any of the terms of the Mortgage Note or the Mortgage, or the exercise of any right thereunder, render either the Mortgage Note or the Mortgage unenforceable in whole or in part, or subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury, and no such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto. 
  
 (l) There is no mechanics’ lien or claim for work, labor or material affecting any Mortgaged Property which is or may
be a lien prior to, or equal with and no rights are outstanding that under the law gives rise to such liens, the lien of the related Mortgage except those which are insured against by any title insurance policy referred to in paragraph (n) below.

  
 (m) Each Mortgage Loan at the time it was made complied with,
and each Mortgage Loan at all times was serviced in compliance with, in each case, in all material respects, applicable local, state and federal laws and regulations, including, without limitation, the federal Truth-in-Lending Act and other consumer
protection laws, the Home Ownership and Equity Protection Act of 1994, real estate settlement procedure, usury, equal credit opportunity, disclosure and recording laws and all applicable predatory and abusive lending laws. 
  
 (n) With respect to each Mortgage Loan, a lender’s title insurance
policy, issued in standard California Land Title Association form or American Land Title Association form, or other form acceptable in a particular jurisdiction by a title insurance company authorized to transact business in the state in which the
related Mortgaged Property is situated, in an amount at least equal to the original Principal Balance of such Mortgage Loan insuring the mortgagee’s interest under the related Mortgage Loan as the holder of a valid first mortgage lien of record
on the real property described in the related Mortgage, as the case may be, subject only to exceptions of the character referred to in paragraph (h) above, was effective on the date of the origination of such Mortgage Loan, and, as of the Closing
Date such policy will be valid and inure to the benefit of the Indenture Trustee on behalf of the Noteholders. 
  
 (o) The improvements upon each Mortgaged Property are covered by a valid and existing hazard insurance policy (which may be a blanket policy of the type
described in this Agreement) with a generally acceptable carrier that provides for fire and extended coverage representing coverage not less than the least of (i) the outstanding Principal Balance of the related Mortgage Loan, (ii) the minimum
amount required to compensate for damage or loss on a replacement cost basis or (iii) the full insurable value of the Mortgaged Property. 
  
 (p) If any Mortgaged Property is in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards,
a flood 
  

 19 

 insurance policy (which may be a blanket policy of the type described in this Agreement) in a form meeting the
requirements of the current guidelines of the Federal Insurance Administration is in effect with respect to such Mortgaged Property with a generally acceptable carrier in an amount representing coverage not less than the least of (i) the outstanding
Principal Balance of the related Mortgage Loan (together, in the case of a second mortgage loan, with the outstanding principal balance of the first mortgage loan), (ii) the minimum amount required to compensate for damage or loss on a replacement
cost basis or (iii) the maximum amount of insurance that is available under the Flood Disaster Protection Act of 1973. 
  
 (q) Each Mortgage and Mortgage Note is the legal, valid and binding obligation of the maker thereof and is enforceable in accordance with its terms,
except only as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity (whether considered in a
proceeding or action in equity or at law), and all parties to each Mortgage Loan had full legal capacity to execute all documents relating to such Mortgage Loan and convey the estate therein purported to be conveyed. 
  
 (r) The Sponsor has directed and the Seller has caused to be performed any
and all acts required to be performed to preserve the rights and remedies of the Indenture Trustee in any Insurance Policies applicable to any Mortgage Loan delivered by the Sponsor or the Seller including, to the extent such Mortgage Loan is not
covered by a blanket policy described in this Agreement, any necessary notifications of insurers, assignments of policies or interests therein, and establishments of coinsured, joint loss payee and mortgagee rights in favor of the Indenture Trustee.

  
 (s) The Sponsor has caused or will have caused, within ten
days, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the original Mortgage Note and all subsequent assignments of the
original Mortgage, granted to the Indenture Trustee hereunder, subject to the provisions of Section 2.05(b) of this Agreement. 
  
 (t) The terms of each Mortgage Note and each Mortgage have not been impaired, altered, waived or modified in any respect, except by a written instrument
which has been recorded, if necessary, to protect the interest of the Noteholders and which has been delivered to the Indenture Trustee. 
  
 (u) The proceeds of each Mortgage Loan have been fully disbursed, and there is no obligation on the part of the mortgagee to make future advances
thereunder. All costs, fees and expenses incurred in making or closing or recording such Mortgage Loans were paid. 
  
 (v) Except as otherwise required by law or pursuant to the statute under which the related Mortgage Loan was made, the related Mortgage Note is not and
has not been secured by any collateral, pledged account or other security except the lien of the corresponding Mortgage. 
  
 (w) No Mortgage Loan was originated under a buydown plan. 
  

 20 

 (x) No Mortgage Loan provides for negative amortization, has a shared appreciation feature, or other
contingent interest feature. 
  
 (y) Each Mortgaged Property is
located in the state identified in the Mortgage Loan Schedule and consists of one or more parcels of real property with a residential dwelling erected thereon and that no residence or dwelling is a mobile home. 
  
 (z) Each Mortgage securing a Mortgage Note contains a provision for the
acceleration of the payment of the unpaid Principal Balance of the related Mortgage Loan in the event the related Mortgaged Property is sold without the prior consent of the mortgagee thereunder. 
  
 (aa) Any advances made after the date of origination of a Mortgage Loan but
prior to the Cut-Off Date, have been consolidated with the outstanding principal amount secured by the related Mortgage, and the secured principal amount, as consolidated, bears a single interest rate and single repayment term reflected on the
Mortgage Loan Schedule. The consolidated principal amount does not exceed the original principal amount of the related Mortgage Loan. No Mortgage Note permits or obligates the Seller, the Master Servicer, the Backup Servicer, the Sponsor or any
other Person to make future advances to the related Mortgagor at the option of the Mortgagor. 
  
 (bb) There is no proceeding pending or threatened for the total or partial condemnation of any Mortgaged Property, nor is such a proceeding currently occurring, and each Mortgaged Property is undamaged by waste, fire,
earthquake or earth movement, flood, tornado or other casualty, so as to affect adversely the value of the Mortgaged Property as security for the Mortgage Loan or the use for which the premises were intended. 
  
 (cc) All of the improvements which were included for the purposes of
determining the Appraised Value of any Mortgaged Property lie wholly within the boundaries and building restriction lines of such Mortgaged Property, and no improvements on adjoining properties encroach upon such Mortgaged Property, except as stated
in the related title insurance policy and affirmatively insured. 
  
 (dd) No improvement located on or being part of any Mortgaged Property is in violation of any applicable zoning law or regulation. As of the related date of origination, all inspections, licenses and certificates required to be made or
issued with respect to all occupied portions of each Mortgaged Property and, with respect to the use and occupancy of the same, including, but not limited to, certificates of occupancy and fire underwriting certificates, have been made or obtained
from the appropriate authorities and such Mortgaged Property is lawfully occupied under the applicable law. 
  
 (ee) With respect to each Mortgage constituting a deed of trust, a trustee, duly qualified under applicable law to serve as such, has been properly
designated and currently so serves and is named in such Mortgage, and no fees or expenses are or will become payable by the Sponsor, the Seller, or the Trust to the trustee under the deed of trust, except in connection with a trustee’s sale
after default by the related Mortgagor. 
  
 (ff) [Reserved].

  

 21 

 (gg) [Reserved]. 
  

(hh) Each Mortgage contains customary and enforceable provisions which render the rights and remedies of the holder thereof adequate for the
realization against the related Mortgaged Property of the benefits of the security, including (i) in the case of a Mortgage designated as a deed of trust, by trustee’s sale and (ii) otherwise by judicial foreclosure. There is no homestead or
other exemption available which materially interferes with the right to sell the related Mortgaged Property at a trustee’s sale or the right to foreclose the related Mortgage. 
  
 (ii) Except for fourteen Mortgage Loans with an aggregate principal balance of $2,645,102, which are delinquent, there is no
default, breach, violation or event of acceleration existing under any Mortgage or the related Mortgage Note and no event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default,
breach, violation or event of acceleration; and the Seller has not waived any default, breach, violation or event of acceleration. 
  
 (jj) No instrument of release or waiver has been executed in connection with any Mortgage Loan, and no Mortgagor has been released, in whole or in part.

  
 (kk) [Reserved]. 
  
 (ll) The Sponsor has no actual knowledge that there exists on any Mortgaged
Property any hazardous substances, hazardous wastes or solid wastes, as such terms are defined in the CERCLA, the Resource Conservation and Recovery Act of 1976, or other federal, state or local environmental legislation. 
  
 (mm) No action, error, omission, misrepresentation, negligence, fraud or
similar occurrence with respect to the origination of a Mortgage Loan has taken place on the part of any person, including, without limitation, the Mortgagor, any appraiser, any builder or developer, or any other party involved in the origination of
the Mortgage Loan or in the application of any insurance in relation to such Mortgage Loan. 
  
 (nn) The Sponsor has not solicited the Mortgagor in connection with any refinancing. 
  
 (oo) If the Mortgage Loan is an adjustable rate Mortgage Loan, all of the adjustments to the Mortgage Interest Rate, to the amount of the monthly payment,
and to the principal balance have been made in accordance with the terms of the related Mortgage Note. 
  
 (pp) The origination and collection practices used with respect to the Mortgage Loan have been in all respects legal, proper, prudent and customary in the
mortgage origination and servicing business. 
  
 (qq) An appraisal
of the related Mortgaged Property was made and signed, prior to the approval of the Mortgage Loan application, by a qualified appraiser who met the requirements of the Sponsor’s appraisal policy and procedures and who had no interest, direct or
indirect in the Mortgaged Property or in any loan made on the security thereof, whose compensation was not affected by the approval or disapproval of the Mortgage Loan. 
  

 22 

 (rr) The Mortgagor has received all disclosure materials required by applicable law with respect to the
making of adjustable rate mortgage loans; and if the Mortgage Loan is a refinanced Mortgage Loan, the Mortgagor has received all disclosure and rescission materials required by applicable law with respect to the making of a refinanced Mortgage Loan,
and evidence of such receipt is and will remain in the Master Servicer’s file. 
  
 (ss) If the residential dwelling on the Mortgaged Property is a condominium unit or a unit in a planned unit development (other than a de minimis planned unit development), such condominium or planned unit development
project meets the Sponsor’s eligibility requirements. 
  
 (tt) Except for 13 Mortgage Loans with a Principal Balance of $2,392,641, which are between 30 and 60 days delinquent, and one Mortgage Loan with a principal balance of $252,461, which was more than 60 days contractually delinquent, as of
the Cut-Off Date, none of the Mortgage Loans was more than 29 days contractually delinquent or had been dishonored. None of the Mortgage Loans have been thirty or more days delinquent more than one time in the twelve months preceding the Cut-Off
Date. 
  
 (uu) The Sponsor has not advanced funds, or induced,
solicited or knowingly received any advance of funds by a person other than the Mortgagor, directly or indirectly, for the payment of any amount required under the Mortgage Loan, except for interest prepaid upon the closing of the Mortgage Loan. No
Mortgage Loan contains any provision pursuant to which Monthly Payments are: (i) paid or partially paid with funds deposited in any separate account established by the Sponsor, the Mortgagor, or anyone on behalf of the Mortgagor or (ii) paid by any
source other than the Mortgagor. The Mortgage Loan is not deemed a graduated payment mortgage loan and the Mortgage Loan does not have a shared appreciation or other contingent interest feature. 
  
 (vv) No foreclosure proceedings are pending against the Mortgaged Property
and the Mortgage Loan is not subject to any pending bankruptcy or insolvency proceeding, and to the Sponsor’s best knowledge, no material litigation or material lawsuit relating to the Mortgage Loan is pending. 
  
 (ww) Principal payments on the Mortgage Loan commenced or will commence
within sixty days after the proceeds of the Mortgage Loan were disbursed. 
  
 (xx) With respect to escrow deposits, if any, all such payments are in the possession of, or under the control of, the Master Servicer and there exists no deficiencies in connection therewith for which customary
arrangements for repayment thereof have not been made or could be made. No escrow deposits or escrow advances or other charges or payments due the Master Servicer have been capitalized under any Mortgage or the related Mortgage Note. 
  
 (yy) With respect to the conveyance of the Mortgage Loans by the Sponsor to
the Seller, the Sponsor used no selection procedures that identified the Mortgage Loans as being less desirable or valuable than other comparable mortgage loans originated or acquired by the Sponsor. The Mortgage Loans are representative of the
Sponsor’s portfolio of fixed-rate or adjustable-rate mortgage loans, as applicable. With respect to the conveyance of the Mortgage 
  

 23 

 Loans pursuant to this Agreement, the Seller used no selection procedures that identified the Mortgage Loans as being
less desirable or valuable than other comparable mortgage loans originated or acquired by the Seller. The Mortgage Loans are representative of the Seller’s portfolio of fixed-rate or adjustable-rate mortgage loans, as applicable. 
  
 (zz) Each Mortgage Loan conforms, and all such Mortgage Loans in the
aggregate conform in all material respects to the description thereof set forth in the Prospectus Supplement. 
  
 (aaa) All requirements for the valid transfer of each Insurance Policy, including any assignments or notices required in each Insurance Policy, have been
satisfied. 
  
 (bbb) This Agreement creates a valid and continuing
security interest (as defined in the applicable UCC) in the Mortgage Loans in favor of the Indenture Trustee, which security interest is prior to all other liens, and is enforceable as such as against creditors of and purchasers from the Seller.

  
 (ccc) The Mortgage Loans constitute “instruments”
within the meaning of the applicable UCC. 
  
 (ddd) The Sponsor
received all consents and approvals required by the terms of the Mortgage Loans to the contribution of the Mortgage Loans pursuant to the Contribution Agreement to the Seller and the Seller has received all consents and approvals required by the
terms of the Mortgage Loans to the sale of the Mortgage Loans hereunder to the Owner Trustee and the subsequent pledge to the Indenture Trustee. 
  
 (eee) Other than the security interest granted to the Indenture Trustee pursuant to the Indenture, neither the Sponsor nor the Seller has pledged,
assigned, sold, granted a security interest in, or otherwise conveyed any of the Mortgage Loans. Neither the Sponsor nor the Seller has authorized the filing of nor is aware of any financing statements against the Sponsor or the Seller that include
a description of collateral covering the Mortgage Loans other than any financing statement relating to the security interest granted to the Indenture Trustee hereunder or that has been terminated. Neither the Sponsor nor the Seller is aware of any
judgment or tax lien filings affecting the Mortgage Loans against either the Seller or the Sponsor. 
  
 (fff) All financing statements filed or to be filed against the Sponsor or the Seller in favor of the Indenture Trustee in connection herewith describing
the Mortgage Loans contain a statement to the following effect: “A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Indenture Trustee.” 
  
 (ggg) None of the Mortgage Loans are classified as (a) “high cost”
loans under the Home Ownership and Equity Protection Act of 1994 or (b) “high cost,” “threshold,” “covered”, “predatory” or “abusive” loans under any other applicable state, federal or local law
(including without limitation any regulation or ordinance) (or a similarly classified loan using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high
interest rates, points and/or fees). 
  

 24 

 (hhh) No proceeds from any Mortgage Loan were used to finance single-premium credit insurance policies;

  
 (iii) No Mortgage Loan is a “High Cost Home Loan” or
“Covered Loan,” as applicable, (as such terms are defined in the then current Standard & Poor’s LEVELS Glossary which is now Version 5.6 Revised, Appendix E) and no Mortgage Loan originated on or after October 1, 2002 through
March 6, 2003 is governed by the Georgia Fair Lending Act. No Mortgage Loan that was originated on or after October 1, 2002 and before March 7, 2003, is secured by property located in the State of Georgia. There is no Mortgage Loan that was
originated on or after March 7, 2003 that is a “high cost home loan” as defined under the Georgia Fair Lending Act. 
  
 (jjj) No Mortgage Loan is secured by a leasehold interest, unless such leasehold interest extends 60 months beyond the stated maturity of the Mortgage
Note. 
  
 (kkk) There is no pending action or proceeding directly
involving the Mortgaged Property in which compliance with any environmental law, rule or regulation is an issue. Based upon customary and prudent residential mortgage industry underwriting standards, there is no violation of any environmental law,
rule or regulation with respect to the Mortgaged Property, and nothing further remains to be done to satisfy in full all requirements of each such law, rule or regulation constituting a prerequisite to use and enjoyment of said property. 

 
 (lll) The Mortgagor has not notified Accredited, and Accredited has no
knowledge of any relief requested or allowed to the Mortgagor under the Servicemembers Civil Relief Act or any similar state statute. 
  
 (mmm) No Mortgage Loan was made in connection with the construction (other than a “construct to perm” loan) or rehabilitation of a Mortgaged
Property or facilitating the trade in or exchange of a Mortgaged Property. 
  
 (nnn) Accredited has complied with all applicable anti money laundering laws and regulations, including without limitation the USA Patriot Act of 2001 (collectively, the “Anti-Money Laundering Laws”).

  
 (ooo) No Mortgage Loan imposes a Prepayment Charge for a term
in excess of five years. 
  
 (ppp) No Mortgage Loan is a
“High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, effective as of November 27, 2003, or the Home Loan Protection Act of New Mexico, effective as of January 1, 2004. 
  
 (qqq) With respect to the Mortgage Loans in Pool IIA, (i) no Mortgage Loan
imposes a Prepayment Charge for a term in excess of three years, (ii) the servicer for each Mortgage Loan has fully furnished, in accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information
(i.e., favorable and unfavorable) on its borrower credit files to Equifax, Experian, and Trans Union Credit Information Company (three of the credit repositories), on a monthly basis, (iii) no Mortgage Loan originated on or after August 1, 2004
requires the borrower to submit to arbitration to resolve any dispute arising 
  

 25 

 out of or relating in any way to the mortgage loan transaction and (iv) the original Principal Balance of each Mortgage
Loan was within Freddie Mac’s dollar amount limits for conforming one- to four-family mortgage loans, as follows: 
  

													
	 Number of Units

	  	Maximum Original Loan Amount of First Mortgage

	  	Continental United States or Puerto
Rico

	  	 Alaska, Guam, Hawaii or
 Virgin Islands

	  	2003 loan limit

	  	2004 loan limit

	  	2003 loan limit

	  	2004 loan limit

	 1
	  	$	322,700	  	$	333,700	  	$	484,050	  	$	500,550
	 2
	  	 	413,100	  	 	427,150	  	 	619,650	  	 	640,725
	 3
	  	 	499,300	  	 	516,300	  	 	748,950	  	 	774,450
	 4
	  	 	620,500	  	 	641,650	  	 	930,750	  	 	962,475

  
 It is understood and
agreed that the representations, warranties and covenants set forth in this Section 4.01 shall survive delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the benefit of the Indenture
Trustee on behalf of the Noteholders. 
  
 Section 4.02.
Purchase and Substitution. (a) It is understood and agreed that the representations and warranties set forth in Section 4.01 shall survive the transfer of the Mortgage Loans by the Seller to the Trust, the subsequent pledge thereof by the
Trust to the Indenture Trustee, for the benefit of the Noteholders, and the delivery of the Notes to the Noteholders, and shall continue in full force and effect, notwithstanding any restrictive or qualified endorsement on the Mortgage Notes and
notwithstanding subsequent termination of this Agreement. 
  
 (b) Upon discovery by the Seller, the Sponsor, the Master Servicer, the Indenture Trustee or a Noteholder of a breach of any of the representations and warranties in Section 4.01 which materially and adversely affects the value of any
Mortgage Loan, or which materially and adversely affects the interests of the Noteholders in the related Mortgage Loan, the party discovering such breach or failure shall promptly (and in any event within five (5) days of the discovery) give written
notice thereof to the others. Within sixty (60) days of the earlier of its discovery or its receipt of notice of any breach of a representation or warranty, the Seller shall, and if the Seller fails to, then the Sponsor shall (a) promptly cure such
breach in all material respects, (b) purchase such Mortgage Loan on a Servicer Remittance Date, in the manner and at the price specified in Section 2.06(b) and this Section 4.02, or (c) remove such Mortgage Loan from the Trust Estate (in which case
it shall become a Deleted Mortgage Loan) and substitute one or more Qualified Substitute Mortgage Loans in the manner specified in Section 2.06 and this Section 4.02. The Indenture Trustee shall deliver prompt written notice to the Rating Agencies
of any repurchase or substitution made pursuant to this Section 4.02 or Section 2.06(b). 
  
 (c) As to any Deleted Mortgage Loan for which the Seller or the Sponsor substitutes a Qualified Substitute Mortgage Loan or Loans, the Master Servicer shall cause the Seller or Sponsor to effect such substitution by
delivering to the Indenture Trustee a certification, in the form attached hereto as Exhibit F, executed by a Servicing Officer, and the documents described in Sections 2.05(a)(i)-(vi) for such Qualified Substitute Mortgage Loan or Loans.

  

 26 

 (d) The Master Servicer shall deposit in the Collection Account all payments received in connection with
such Qualified Substitute Mortgage Loan or Loans after the date of such substitution. Monthly Payments due with respect to Qualified Substitute Mortgage Loans in or before the Due Period in which the substitution occurs shall not be part of the
Trust Estate and will be retained by the Sponsor on the next succeeding Payment Date. For the Due Period in which the substitution occurs, distributions to Noteholders will include the Monthly Payment due on any Deleted Mortgage Loan for such Due
Period and thereafter the Sponsor shall be entitled to retain all amounts received in respect of such Deleted Mortgage Loan. The Master Servicer shall give written notice to the Backup Servicer, the Indenture Trustee that such substitution has taken
place and shall amend the Mortgage Loan Schedule to reflect the removal of such Deleted Mortgage Loan from the terms of this Agreement and the substitution of the Qualified Substitute Mortgage Loan or Loans. Upon such substitution, such Qualified
Substitute Mortgage Loan or Loans shall be subject to the terms of this Agreement in all respects. 
  
 (e) With respect to any Mortgage Loan that has been converted to an REO Mortgage Loan, all references in this Section 4.02 or Section 2.06 to
“Mortgage Loan” shall be deemed to also refer to the REO Mortgage Loan. With respect to any Mortgage Loan that the Seller and Sponsor are required to repurchase that is or becomes a Liquidated Mortgage Loan, in lieu of repurchasing such
Mortgage Loan, the Master Servicer shall deposit into the Payment Account, pursuant to Section 8.01 of the Indenture, an amount equal to the amount of the Liquidated Loan Loss, if any, incurred in connection with the liquidation of such Mortgage
Loan within the same time period in which the Master Servicer, Seller or Sponsor would have otherwise been required to repurchase such Mortgage Loan. 
  
 (f) It is understood and agreed that the obligations of the Seller and the Sponsor set forth in Sections 2.06 and 4.02 to cure, purchase or substitute for
a defective Mortgage Loan, or to indemnify as described in Section 4.02(g) constitute the sole remedies of the Indenture Trustee and the Noteholders respecting a breach of the representations and warranties of the Sponsor set forth in Section 4.01
of this Agreement. 
  
 (g) The Sponsor shall be obligated to
indemnify the Seller, the Indenture Trustee, the Trust, the Owner Trustee and the Noteholders for any third party claims arising out of a breach by the Sponsor of representations or warranties regarding the Mortgage Loans. 
  
 ARTICLE V 
  
 ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS 
  
 Section 5.01. The Master Servicer. (a) The Master Servicer shall
service and administer the Mortgage Loans in accordance with this Agreement and in accordance with Accepted Servicing Practices, and shall have full power and authority, acting alone, to do or cause to be done any and all things in connection with
such servicing and administration which it may deem necessary or desirable. 
  
 (b) The Master Servicer shall exercise its discretion consistent with Accepted Servicing Practices and the terms of this Agreement, with respect to the enforcement of defaulted Mortgage Loans in such manner as will
maximize the receipt of principal and interest with 
  

 27 

 respect thereto, including but not limited to the sale of such Mortgage Loan to a third party, the modification of such
Mortgage Loan, or foreclosure upon the related property with a Mortgage and disposition thereof. 
  
 (c) The duties of the Master Servicer shall include collecting and posting of all payments, responding to inquiries of Mortgagors or by federal, state or
local government authorities with respect to the Mortgage Loans, investigating delinquencies, reporting tax information to Mortgagors in accordance with its customary practices and accounting for collections and furnishing monthly and annual
statements to the Indenture Trustee with respect to distributions, paying Compensating Interest and making Delinquency Advances and Servicing Advances pursuant hereto. The Master Servicer shall follow its customary standards, policies and procedures
in performing its duties as Master Servicer. The Master Servicer shall cooperate with the Indenture Trustee and furnish to the Indenture Trustee with reasonable promptness information in its possession as may be necessary or appropriate to enable
the Indenture Trustee to perform its tax reporting duties hereunder. The Indenture Trustee shall furnish the Master Servicer, or the Backup Servicer with any powers of attorney and other documents as the Indenture Trustee shall deem necessary or
appropriate to enable the Master Servicer, and the Backup Servicer to carry out its servicing and administrative duties hereunder; provided, however, the Master Servicer, or the Backup Servicer shall prepare for and deliver to the Indenture Trustee
for its execution any such powers of attorney; provided, further, that the Indenture Trustee shall not be responsible for any misuse of any such power of attorney. Notwithstanding anything contained herein to the contrary, neither the Master
Servicer nor the Backup Servicer shall, without the Indenture Trustee’s written consent, other than routine foreclosure actions: (i) initiate any action, suit or proceeding directly relating to the servicing of the Mortgage Loan solely under
the Indenture Trustee’s name without indicating the Master Servicer’s or Backup Servicer’s, as applicable, representative capacity, (ii) initiate any other action, suit or proceeding not directly relating to the servicing of any
Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders or Certificateholders, or against the Seller for breaches of representations and warranties) solely under the Indenture Trustee’s name, (iii) engage
counsel to represent the Indenture Trustee in any action, suit or proceeding not directly related to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders or Certificateholders, or against
the Seller for breaches of representations and warranties, or (iv) prepare, execute or deliver any government filings, forms, permits, registrations or other documents or take any action with the intent to cause, and that actually causes, the
Indenture Trustee to be registered to do business in any state. 
  
 (d) [Reserved]. 
  
 (e) The Master Servicer shall, in
accordance with Accepted Servicing Practices, have the right to approve requests of Mortgagors for consent to (i) partial releases of Mortgage Loans and (ii) alterations, removal, demolition or division of Mortgaged Properties subject to Mortgage
Loans. No such request shall be approved by the Master Servicer unless: (x) the provisions of the related Mortgage Note have been complied with; (y) the LTV (which may, for this purpose, be determined at the time of any such action) after any
release does not exceed the LTV set forth for such Mortgage Loan in the Mortgage Loan Schedule; and (z) the lien priority, monthly payment, Mortgage Interest Rate or maturity date of the related Mortgage is not affected except in accordance with
Section 5.01(f); provided, however, that the foregoing requirements (x), (y) and (z) shall not apply to any such situation described in this paragraph if such situation results from any condemnation or easement activity by a
governmental entity. 
  

 28 

 (f) Notwithstanding anything else contained herein, the Master Servicer may not agree to a modification
or extension of any Mortgage Loan unless both (i) such Mortgage Loan is in default or a default thereon is reasonably foreseeable and (ii) such modification or extension would not result in the Master Servicer agreeing to modifications or extensions
on Mortgage Loans with Initial Pool Balances of the related Group or Pool of more than 5.0% of the Maximum Collateral Amount. In addition, the Master Servicer may not agree to more than (i) one modification or extension with respect to any
individual Mortgage Loan in a calendar year or (ii) three modifications or extensions of an individual Mortgage Loan during the life of such Mortgage Loan. 
  
 (g) [Reserved]. 
  
 (h) Without limiting the generality of the foregoing, but subject to Sections 5.05 and 5.06, the Master Servicer in its own name may be authorized and
empowered pursuant to a power of attorney executed and delivered by the Indenture Trustee to execute and deliver, and may be authorized and empowered by the Indenture Trustee, to execute and deliver, on behalf of itself, the Noteholders and the
Indenture Trustee or any of them, (i) any and all instruments of satisfaction or cancellation or of partial or full release or discharge and all other comparable instruments with respect to the Mortgage Loans and with respect to the Mortgaged
Properties, (ii) and to institute foreclosure proceedings or obtain a deed in lieu of foreclosure so as to effect ownership of any Mortgaged Property on behalf of the Indenture Trustee, and (iii) to hold title to any Mortgaged Property upon such
foreclosure or deed in lieu of foreclosure on behalf of the Indenture Trustee; provided, however, that Section 5.07(a) shall constitute a power of attorney from the Indenture Trustee to the Master Servicer to execute an instrument of
satisfaction (or assignment of mortgage without recourse) with respect to any Mortgage Loan paid in full (or with respect to which payment in full has been escrowed). Subject to Sections 5.05 and 5.06, the Indenture Trustee shall furnish the Master
Servicer with any powers of attorney and other documents as the Master Servicer shall reasonably request to enable the Master Servicer to carry out its servicing and administrative duties hereunder; provided, however, the Master Servicer shall
prepare for and deliver to the Indenture Trustee for its execution any such powers of attorney; provided, further, that the Indenture Trustee shall not be responsible for any misuse of any such power of attorney. Notwithstanding anything contained
herein to the contrary, neither the Master Servicer nor the Backup Servicer shall, without the Indenture Trustee’s written consent, other than routine foreclosure actions: (i) initiate any action, suit or proceeding directly relating to the
servicing of the Mortgage Loan solely under the Indenture Trustee’s name without indicating the Master Servicer’s or Backup Servicer’s, as applicable, representative capacity, (ii) initiate any other action, suit or proceeding not
directly relating to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders or Certificateholders, or against the Seller for breaches of representations and warranties) solely under the
Indenture Trustee’s name, (iii) engage counsel to represent the Indenture Trustee in any action, suit or proceeding not directly related to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against
Noteholders or Certificateholders, or against the Seller for breaches of representations and warranties, or (iv) prepare, execute or deliver any government filings, forms, permits, registrations or other documents or take any action with the intent
to cause, and that actually causes, the Indenture Trustee to be registered to do business in any state. 
  

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 (i) The Master Servicer shall give prompt notice to the Backup Servicer and the Indenture Trustee of any
action, of which the Master Servicer has actual knowledge, to (i) assert a claim against the Trust or (ii) assert jurisdiction over the Trust. 
  
 (j) Servicing Advances incurred by the Master Servicer in connection with the servicing of the Mortgage Loans (including any penalties in connection with
the payment of any taxes and assessments or other charges) on any Mortgaged Property shall be recoverable by the Master Servicer to the extent described herein. 
  

(k) The Master Servicer shall be entitled to rely, and shall be fully protected in relying, upon any promissory note, writing, resolution, notice,
consent, certificate, affidavit, letter, e-mail, cablegram, telegram, telecopy, telex or teletype message, statement, order or other document reasonably believed by it to be genuine and correct and to have been signed, sent or made by the proper
person or persons and upon advice and statements of legal counsel (including, without limitation, counsel to the Mortgagor(s)), independent accountants and other experts selected by the Master Servicer. 
  
 (l) The Master Servicer shall have no liability to the Seller, the Sponsor,
the Indenture Trustee, the Owner Trustee, any Noteholder or any other Person for any action taken, or for refraining from the taking of any action, in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that the
foregoing shall not apply to any breach of representations or warranties made by the Master Servicer herein, or to any specific liability imposed upon the Master Servicer pursuant to this Agreement or any liability that would otherwise be imposed
upon the Master Servicer by reason of its willful misconduct, bad faith or negligence in the performance of its duties hereunder or by reason of its failure to perform its obligations or duties hereunder. 
  
 (m) The Master Servicer further is authorized and empowered by the Indenture
Trustee, on behalf of the Noteholders and the Indenture Trustee, when the Master Servicer believes it is appropriate in its best judgment to register any Mortgage Loan on the MERS System, or cause the removal from the registration of any Mortgage
Loan on the MERS System, to execute and deliver, on behalf of the Indenture Trustee and the Noteholders or any of them, any and all instruments of assignment and other comparable instruments with respect to such assignment or re-recording of a
Mortgage in the name of MERS, solely as nominee for the Indenture Trustee and its successors and assigns. Any expenses incurred in connection with the actions described in the preceding sentence shall be reimbursable to the Master Servicer as
Servicing Advances. 
  
 Section 5.02. Collection of Certain
Mortgage Loan Payments; Collection Account. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Mortgage Loans, and shall, to the extent such procedures shall be
consistent with this Agreement, follow Accepted Servicing Practices. Consistent with the foregoing, the Master Servicer may in its discretion waive any assumption fees or other fees which may be collected in the ordinary course of servicing such
Mortgage Loans. 
  

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 (b) The Master Servicer shall establish and maintain, in the name of the Indenture Trustee, a segregated
account (the “Collection Account”), in trust for the benefit of the Noteholders. The Collection Account shall be established and maintained as an Eligible Account. 
  
 (c) The Master Servicer shall deposit in the Collection Account any amounts representing Monthly Payments on the Mortgage
Loans due or to be applied as of a date after the Cut-Off Date on each Business Day, not more than two Business Days after the date of collection, the following payments and collections received or made by it (other than in respect of monthly
payments of principal on and interest of the Mortgage Loans that were due on or before the related Cut-Off Date and Monthly Payments due on August 1, 2004): 
  
 (i) payments of interest on the Mortgage Loans including Prepayment Charges; 
  
 (ii) payments of principal of the Mortgage Loans, including
Principal Prepayments; 
  
 (iii) the Loan
Repurchase Price of Mortgage Loans repurchased pursuant to Sections 2.06(b) or 4.02; 
  
 (iv) the Substitution Adjustment received in connection with Mortgage Loans for which Qualified Substitute Mortgage Loans are received
pursuant to Sections 2.06 and 4.02; 
  
 (v) all
Net REO Proceeds; 
  
 (vi) all Net Liquidation
Proceeds; and 
  
 (vii) all Insurance Proceeds
(including, for this purpose, any amounts required to be deposited by the Master Servicer pursuant to Section 5.04 hereof). 
  
 It is understood that the Master Servicer need not deposit amounts representing fees, late payment charges or extension or other administrative charges
(other than Prepayment Charges) payable by Mortgagors, or amounts received by the Master Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items or foreclosure proceeds
to the extent payable to the related Mortgagor. 
  
 (d) The Master
Servicer shall invest any funds in the Collection Account in Permitted Investments, which shall mature not later than the Business Day next preceding the Servicer Remittance Date next following the date of such investment (except that any investment
held by the Indenture Trustee may mature on such Servicer Remittance Date) and shall not be sold or disposed of prior to its maturity. All net income and gain realized from any such investment shall be for the benefit of the Master Servicer and
shall be subject to its withdrawal or order on a Servicer Remittance Date. The Master Servicer shall deposit from its own funds the amount of any loss, to the extent not offset by investment income or earnings, in the Collection Account upon the
realization of such loss. 
  

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 Section 5.03. Permitted Withdrawals from the Collection Account. The Master Servicer may make
withdrawals from the Collection Account, on or prior to any Servicer Remittance Date, for the following purposes: 
  
 (a) to pay to the Sponsor amounts received in respect of any Defective Mortgage Loan purchased or substituted for by the Sponsor to the extent that the
payment of any such amounts on the Servicer Remittance Date upon which the proceeds of such purchase are paid would make the total amount distributed in respect of any such Mortgage Loan on such Servicer Remittance Date greater than the Loan
Repurchase Price or the Substitution Adjustment therefor; 
  
 (b)
to reimburse the Master Servicer for unreimbursed Delinquency Advances and unreimbursed Servicing Advances with respect to the Mortgage Loans for which it has made a Delinquency Advance or Servicing Advance, from late or deferred payments collected,
collections other than timely Monthly Payments, Liquidation Proceeds and/or the Loan Repurchase Price or Substitution Adjustment of or relating to such Mortgage Loans; 
  
 (c) to reimburse the Master Servicer for any Delinquency Advances and Servicing Advances determined in good faith to have
become Nonrecoverable Advances, such reimbursement to be made from any funds in the Collection Account; 
  
 (d) to withdraw any amount received from a Mortgagor that is recoverable and sought to be recovered as a voidable preference by a trustee in bankruptcy
pursuant to the Bankruptcy Code in accordance with a final, nonappealable order of a court having competent jurisdiction; 
  
 (e) to withdraw any funds deposited in the Collection Account that were not required to be deposited therein; 
  
 (f) to pay the Master Servicer the Servicing Compensation pursuant to Section
5.08 hereof to the extent not retained or paid; 
  
 (g) to pay the
Backup Servicer the Backup Servicing Fee pursuant to Section 5.08 hereof to the extent payments in respect of these amounts have not been previously retained or paid; 
  
 (h) without duplication, and solely out of amounts which are payable to a former master servicer pursuant to Section
7.02(g), to pay to the Backup Servicer, the Indenture Trustee or any successor master servicer amounts paid by them in connection with the transfer of the Master Servicer’s servicing obligations pursuant to Article VII hereof and required under
such Article VII to be borne by the Master Servicer; 
  
 (i) to
withdraw income on the Collection Account as provided in Section 5.02(d); and 
  
 (j) amounts deposited into the Collection Account in respect of late fees, assumption fees and similar fees (other than Prepayment Charges). 
  

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 The Master Servicer shall keep and maintain a separate accounting for each Mortgage Loan for the purpose
of accounting for withdrawals from the Collection Account pursuant to this Section 5.03. Furthermore, in the event that servicing has been transferred to the Backup Servicer, all reimbursements in respect of Servicer Advances and Delinquency
Advances shall be made on a first in, first out priority basis (i.e. the longest outstanding reimbursable Servicer Advance or Delinquency Advance will be reimbursed first). 
  
 Section 5.04. Hazard Insurance Policies; Property Protection Expenses. (a) The Master Servicer shall cause to be
maintained with respect to each Mortgage Loan a hazard insurance policy with a carrier licensed in the state in which the Mortgaged Property is located that provides for fire and extended coverage, and which provides for a recovery by the named
insured of insurance proceeds relating to such Mortgage Loan in an amount not less than the least of (i) the outstanding Principal Balance of the Mortgage Loan plus the outstanding principal balance of any mortgage loan senior to such Mortgage Loan,
but in no event shall such amount be less than is necessary to prevent the Mortgagor from becoming a coinsurer thereunder, (ii) the minimum amount required to compensate for loss or damage on a replacement cost basis and (iii) the full insurable
value of the related Mortgage Property. The Master Servicer shall also maintain on property acquired upon foreclosure, or by deed in lieu of foreclosure, hazard insurance with extended coverage in an amount which is at least equal to the lesser of
(i) the maximum insurable value from time to time of the improvements which are a part of such property or (ii) the sum of the Principal Balance of such Mortgage Loan and the principal balance of any mortgage loan senior to such Mortgage Loan at the
time of such foreclosure plus accrued interest and the good-faith estimate of the Master Servicer of related Liquidation Expenses to be incurred in connection therewith. Amounts collected by the Master Servicer under any such policies shall be
deposited in the Collection Account to the extent that they constitute Liquidation Proceeds or Insurance Proceeds. Each hazard insurance policy shall contain a standard mortgage clause naming the Master Servicer, its successors and assigns, as
mortgagee. The Master Servicer shall be under no obligation to require that any Mortgagor maintain earthquake (except as provided herein) or other additional insurance and shall be under no obligation itself to maintain any such additional insurance
on property acquired in respect of a Mortgage Loan, other than pursuant to such applicable laws and regulations as shall at any time be in force and as shall require such additional insurance. 
  
 (b) In the event that the Master Servicer shall obtain and maintain a blanket
policy with an insurer which satisfies the corresponding requirements of Fannie Mae or Freddie Mac, insuring against fire, flood and hazards of extended coverage on all of the Mortgage Loans, then, to the extent such policy names the Master Servicer
as loss payee and provides coverage in an amount equal to the aggregate unpaid Principal Balance on the Mortgage Loans without co-insurance, and otherwise complies with the requirements of this Section 5.04, the Master Servicer shall be deemed
conclusively to have satisfied its obligations with respect to fire and hazard insurance coverage under this Section 5.04, it being understood and agreed that such blanket policy may contain a deductible clause (payable by the Master Servicer), in
which case the Master Servicer shall, in the event that there shall not have been maintained on the related Mortgaged Property a policy complying with the preceding paragraph of this Section 5.04, and there shall have been a loss which would have
been covered by such policy, deposit in the Collection Account from the Master Servicer’s own funds the difference, if any, between the amount that would have been payable under a policy complying with the preceding paragraph of 
  

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 this Section 5.04 and the amount paid under such blanket policy. Upon the request of the Indenture Trustee, the Master
Servicer shall cause to be delivered to the Indenture Trustee, a certified true copy of such policy. 
  
 (c) If the Mortgage Loan at the time of origination relates to a Mortgaged Property in an area identified in the Federal Register by the Federal Emergency
Management Agency as having special flood hazards as designated to the Master Servicer by the Sponsor, the Master Servicer will cause to be maintained with respect thereto a flood insurance policy in a form meeting the requirements of the current
guidelines of the Federal Insurance Administration with a generally acceptable carrier in an amount representing coverage, and which provides for a recovery by the Master Servicer on behalf of the Trust of insurance proceeds relating to such
Mortgage Loan of not less than the least of (i) the outstanding Principal Balance of the related Mortgage Loan, plus the principal balance of the related first lien, if any, (ii) the minimum amount required to compensate for damage or loss on a
replacement cost basis and (iii) the maximum amount of insurance that is available under the Flood Disaster Protection Act of 1973. The Master Servicer shall indemnify the Trust out of the Master Servicer’s own funds for any loss to the Trust
resulting from the Master Servicer’s failure to maintain the insurance required by this Section. 
  
 Section 5.05. Assumption and Modification Agreements. When a Mortgaged Property has been or is about to be conveyed by the Mortgagor, the Master
Servicer shall, to the extent it has knowledge of such conveyance or prospective conveyance, exercise its rights to accelerate the maturity of the related Mortgage Loan under any “due-on-sale” clause contained in the related Mortgage or
Mortgage Note; provided, however, that the Master Servicer shall not exercise any such right if (i) the “due-on-sale” clause, in the reasonable belief of the Master Servicer, is not enforceable under applicable law or (ii)
the Master Servicer reasonably believes that to permit an assumption of the Mortgage Loan would not materially and adversely affect the interest of the Noteholders. In such event, the Master Servicer shall enter into an assumption and modification
agreement with the Person to whom such property has been or is about to be conveyed, pursuant to which such Person becomes liable under the Mortgage Note and, unless prohibited by applicable law or the mortgage documents, the Mortgagor remains
liable thereon. If the foregoing is not permitted under applicable law, the Master Servicer is authorized to enter into a substitution of liability agreement with such Person, pursuant to which the original Mortgagor is released from liability and
such Person is substituted as Mortgagor and becomes liable under the Mortgage Note. The Mortgage Loan, if assumed, shall conform in all respects to the requirements and representations and warranties of this Agreement. The Master Servicer shall
notify the Indenture Trustee that any applicable assumption or substitution agreement has been completed by forwarding to the Indenture Trustee the original copy of such assumption or substitution agreement, which copy shall be added by the
Indenture Trustee to the related Indenture Trustee’s Mortgage File and which shall, for all purposes, be considered a part of such Indenture Trustee’s Mortgage File to the same extent as all other documents and instruments constituting a
part thereof. The Master Servicer shall be responsible for promptly recording any such assumption or substitution agreements. In connection with any such assumption or substitution agreement, the required monthly payment on the related Mortgage Loan
shall not be changed but shall remain as in effect immediately prior to the assumption or substitution, the stated maturity or outstanding Principal Balance of such Mortgage Loan shall not be changed, the Mortgage Interest Rate shall not be changed
nor shall any required monthly payments of 
  

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 principal or interest be deferred or forgiven. Any fee collected by the Master Servicer for consenting to any such
conveyance or entering into an assumption or substitution agreement shall be retained by or paid to the Master Servicer as additional servicing compensation. 
  
 Notwithstanding the foregoing paragraph or any other provision of this Agreement, the Master Servicer shall not be deemed to be in default, breach or any
other violation of its obligations hereunder by reason of any assumption of a Mortgage Loan by operation of law or any assumption which the Master Servicer may be restricted by law from preventing, for any reason whatsoever. 
  
 Section 5.06. Realization Upon Defaulted Mortgage Loans. (a) The
Master Servicer shall foreclose upon or otherwise comparably effect the ownership on behalf of the Trust of Mortgaged Properties relating to defaulted Mortgage Loans as to which no satisfactory arrangements can be made for collection of Delinquent
payments and which the Sponsor has not purchased pursuant to Section 5.15, unless the Master Servicer reasonably believes that Net Liquidation Proceeds with respect to such Mortgage Loan would not be increased as a result of such foreclosure or
other action, in which case, such Mortgage Loan will be charged-off and will become a Liquidated Mortgage Loan. The Master Servicer shall have no obligation to purchase any Mortgaged Property at any foreclosure sale. In connection with such
foreclosure or other conversion, the Master Servicer shall exercise foreclosure procedures with the same degree of care and skill in their exercise or use, as it would ordinarily exercise or use under the circumstances in the conduct of their own
affairs. Any amounts including Liquidation Expenses, advanced by the Master Servicer in connection with such foreclosure or other action shall constitute Servicing Advances. 
  
 Pursuant to its efforts to sell any REO Property, the Master Servicer either itself or through an agent selected by the
Master Servicer shall manage, conserve, protect and operate such REO Property in the same manner and to such extent as is customary in the locality where such REO Property is located and may, incident to its conservation and protection of the
interests of the Master Servicer, rent the same, or any part thereof, as the Master Servicer deems to be in the best interest of the Trust for the period prior to the sale of such REO Property. The net income generated from the REO Property and the
proceeds from a sale of any REO Property shall be deposited in the Collection Account. 
  
 (b) If the Master Servicer has reason to believe that a Mortgaged Property which the Master Servicer is contemplating acquiring in foreclosure or by deed in lieu of foreclosure contains environmental or hazardous
waste risks known to the Master Servicer, the Master Servicer shall notify the Backup Servicer and the Indenture Trustee prior to acquiring the Mortgaged Property. The Master Servicer shall not institute foreclosure actions with respect to such a
property if it reasonably believes that such action would not be consistent with the Accepted Servicing Practices, and in no event shall the Master Servicer be required to manage, operate or take any other action with respect thereto which the
Master Servicer in good faith believes will result in “clean-up” or other liability under applicable law, unless the Master Servicer receives an indemnity acceptable to it in its sole discretion. 
  
 (c) The Master Servicer shall determine, with respect to each defaulted
Mortgage Loan, when it has recovered, whether through trustee’s sale, foreclosure sale or otherwise, all amounts if any it expects to recover from or on account of such defaulted Mortgage Loan, whereupon such Mortgage Loan shall become a
Liquidated Mortgage Loan. 
  

 35 

 (d) Net Foreclosure Profits, if any, shall be paid directly to the Sponsor. 
  
 (e) With respect to its obligations under this Section 5.06, the Master
Servicer shall take all such actions as it reasonably believes are consistent with Accepted Servicing Practices. 
  
 Section 5.07. Indenture Trustee to Cooperate. (a) Upon the payment in full of any Mortgage Loan or the receipt by the Master Servicer of a
notification that payment in full will be escrowed in a manner customary for such purposes, the Master Servicer shall deliver to the Indenture Trustee one copy of a Request for Release. Upon receipt of such copy of the Request for Release, the
Indenture Trustee shall promptly release the related Indenture Trustee’s Mortgage File, in trust to (i) the Master Servicer (ii) an escrow agent or (iii) any employee, agent or attorney of the Indenture Trustee, in each case pending its release
by the Master Servicer, such escrow agent or such employee, agent or attorney of the Indenture Trustee, as the case may be. Upon any such payment in full, or the receipt of such notification that such funds have been placed in escrow, the Master
Servicer is authorized to give, as attorney-in-fact for the Indenture Trustee and the mortgagee under the Mortgage which secured the Mortgage Note, an instrument of satisfaction (or assignment of Mortgage without recourse) regarding the Mortgaged
Property relating to such Mortgage, which instrument of satisfaction or assignment, as the case may be, shall be delivered to the Person or Persons entitled thereto against receipt therefor of payment in full, it being understood and agreed that no
expense incurred in connection with such instrument of satisfaction or assignment, as the case may be, shall be chargeable to the Collection Account. 
  
 (b) (i) From time to time and as appropriate in the servicing of any Mortgage Loan, including, without limitation, foreclosure or other comparable
conversion of a Mortgage Loan, the Indenture Trustee shall (except in the case of the payment or liquidation pursuant to which the related Indenture Trustee’s Mortgage File is released to an escrow agent or an employee, agent or attorney of the
Indenture Trustee), upon request of the Master Servicer and delivery to the Indenture Trustee of one copy of a Request for Release, release the related Indenture Trustee’s Mortgage File to the Master Servicer and shall execute such documents as
shall be necessary to the prosecution of any such proceedings, including, without limitation, an assignment without recourse of the related Mortgage to the Master Servicer. The Indenture Trustee shall complete in the name of the Indenture Trustee
any endorsement in blank on any Mortgage Note prior to releasing such Mortgage Note to the Master Servicer. Such receipt shall obligate the Master Servicer to return the Indenture Trustee’s Mortgage File to the Indenture Trustee when the need
therefor by the Master Servicer no longer exists unless the Mortgage Loan shall be liquidated, in which case, the Master Servicer shall deliver one copy of a Request for Release indicating such loan has been paid in full. 
  
 (ii) Each Request for Release may be delivered to the
Indenture Trustee (x) via mail or courier, (y) via facsimile or (z) by such other means, including, without limitation, electronic or computer readable medium, as the Master Servicer and the Indenture Trustee shall mutually agree. The Indenture
Trustee shall promptly release the related Indenture Trustee’s Mortgage File(s) within five (5) Business Days of receipt 
  

 36 

 of one copy of a properly completed Request for Release pursuant to clauses (x), (y) or (z) above or such
shorter period as may be agreed upon by the Master Servicer and the Indenture Trustee. Receipt of a Request for Release pursuant to clauses (x), (y) or (z) above shall be authorization to the Indenture Trustee to release such Indenture
Trustee’s Mortgage Files, provided the Indenture Trustee has determined that such Request for Release has been executed, with respect to clauses (x) or (y) above, or approved, with respect to clause (z) above, by a Servicing Officer of the
Master Servicer. If the Indenture Trustee is unable to release the Indenture Trustee’s Mortgage Files within the time frames previously specified, the Indenture Trustee shall immediately notify the Master Servicer, indicating the reason for
such delay, but in no event shall such notification be later than seven (7) Business Days after receipt of a Request for Release. If the Master Servicer, is required to pay penalties or damages due solely to the Indenture Trustee’s negligent
failure to release the related Indenture Trustee’s Mortgage File or the Indenture Trustee’s negligent failure to execute and release documents in a timely manner, the Indenture Trustee shall be liable for such penalties or damages.

  
 (c) No costs associated with the procedures described in this
Section 5.07 shall be an expense of the Trust or the Indenture Trustee and the Indenture Trustee shall have no liability or obligation whatsoever to pay or advance any such amounts, except for any penalties and damages as set forth in Section
5.07(b)(ii) above. 
  
 Section 5.08. Servicing Compensation;
Payment of Certain Expenses by Master Servicer. The Master Servicer shall be entitled to receive and retain, out of collections on the Mortgage Loans for each Due Period, as servicing compensation for such Due Period, an amount (the
“Servicing Fee”) equal to the product of one-twelfth of the Servicing Fee Rate and the aggregate Stated Principal Balance of the Mortgage Loans in each Loan Group as of the beginning of such Due Period. Additional servicing
compensation in the form of assumption fees, late payment charges or extension and other administrative charges (other than Prepayment Charges) shall be retained by the Master Servicer. The Master Servicer shall be required to pay all expenses
incurred by it in connection with its activities hereunder (including payment of all other fees and expenses not expressly stated hereunder to be payable by or from another source) and shall not be entitled to reimbursement therefor except as
specifically provided herein. 
  
 The Backup Servicer shall be
entitled to receive, an amount (the “Backup Servicing Fee”) equal to the product of one-twelfth of the Backup Servicing Fee Rate and the aggregate Stated Principal Balance of the Mortgage Loans in each Loan Group as of the beginning
of such Due Period, subject to a minimum of $2,000 per Collection Period, such amount to be paid pursuant to Section 8.01 of the Indenture. The Backup Servicer will also be entitled to an upfront fee of $7,500.00. 
  
 Section 5.09. Annual Statement as to Compliance. The Master Servicer
will deliver to the Backup Servicer, the Trust, the Indenture Trustee, the Rating Agencies and the Sponsor on or before March 15 of each year, beginning March 15, 2005, an Officer’s Certificate of the Master Servicer stating that (a) a review
of the activities of the Master Servicer during the preceding calendar year and of its performance under this Agreement has been made under such officer’s supervision and (b) to the best of such officer’s knowledge, based on such review,
the Master Servicer has fulfilled all its material obligations under this Agreement throughout such year, or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to such officer and the nature
and status thereof. 
  

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 Section 5.10. Annual Independent Public Accountants’ Servicing Report. On or before March 15
of each year, beginning March 15, 2005, the Master Servicer at its expense shall cause a firm of independent public accountants that is a member of the American Institute of Certified Public Accountants (who may also render other services to the
Master Servicer) to furnish a report to the Backup Servicer, the Trust, the Indenture Trustee, the Rating Agencies and the Sponsor to the effect that such firm has examined certain documents and records relating to the servicing of mortgage loans
under servicing agreements (including this Agreement) substantially similar to this Agreement, and that such examination, which has been conducted substantially in compliance with the Uniform Single Attestation Program for Mortgage Bankers or the
Audit Guide for Audits of HUD Approved Nonsupervised Mortgagees (to the extent that the procedures in such audit guide are applicable to the servicing obligations set forth in such agreements), has disclosed no items of noncompliance with the
provisions of this Agreement which, in the opinion of such firm, are material, except for such items of noncompliance as shall be set forth in such report. 
  
 Section 5.11. Access to Certain Documentation. The Master Servicer shall provide to the Backup Servicer, the Indenture Trustee, the FDIC and the
supervisory agents and examiners (as required in the latter case by applicable State and federal regulations) of each of the foregoing access to the documentation regarding the Mortgage Loans, such access being afforded without charge but only upon
reasonable request and during normal business hours at the offices of the Master Servicer designated by it. 
  
 Upon any change in the format of the computer tape maintained by the Master Servicer in respect of the Mortgage Loans, the Master Servicer shall deliver a
copy of such computer tape to the Indenture Trustee and the Backup Servicer and in addition shall provide a copy of such computer tape to the Indenture Trustee and the Backup Servicer at such other times as the Indenture Trustee may reasonably
request. 
  
 The Master Servicer shall keep confidential
(including from affiliates thereof) information concerning the Mortgage Loans, except as required by law. 
  
 Section 5.12. Maintenance of Fidelity Bond. The Master Servicer and the Backup Servicer shall each, during the term of its service as Master
Servicer and Backup Servicer, respectively, maintain in force a fidelity bond and errors and omissions insurance in respect of their respective officers, employees or agents. Such bond and insurance shall comply with the requirements from time to
time of Fannie Mae or Freddie Mac for Persons performing servicing for mortgage loans purchased by such association. 
  
 Section 5.13. Subservicing Agreements Between the Master Servicer and Subservicer and Subservicers. (a) The Master Servicer may enter into
subservicing agreements for any servicing and administration of Mortgage Loans with any institution which is in compliance with the laws of each state necessary to enable it to perform its obligations under such subservicing agreement. The Master
Servicer shall give notice to the Backup Servicer and the Indenture Trustee of the appointment of any subservicer and shall furnish to the Backup Servicer and the 
  

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 Indenture Trustee a copy of the subservicing agreement. The Master Servicer shall give notice to each Rating Agency of
the appointment of any subservicer. For purposes of this Agreement, the Master Servicer shall be deemed to have received payments on Mortgage Loans when any subservicer has received such payments. Any such subservicing agreement shall be consistent
with and not violate the provisions of this Agreement. 
  
 (b) The
Master Servicer may terminate any subservicing agreement in accordance with the terms and conditions of such subservicing agreement and thereafter directly service the related Mortgage Loans itself or enter into a subservicing agreement with a
successor subservicer that qualifies under Subsection (a) of this Section 5.13. The Master Servicer shall give notice to each Rating Agency of the termination of any subservicer and the appointment of any successor subservicer. 
  
 (c) The Master Servicer shall not be relieved of its obligations under this
Agreement notwithstanding any subservicing agreement or any of the provisions of this Agreement relating to agreements or arrangements between the Master Servicer and a subservicer or otherwise, and the Master Servicer shall be obligated to the same
extent and under the same terms and conditions as if it alone were servicing and administering the Mortgage Loans. The Master Servicer shall be entitled to enter into any agreement with a subservicer for indemnification of the Master Servicer by
such subservicer and nothing contained in such subservicing agreement shall be deemed to limit or modify this Agreement. The Trust shall not indemnify the Master Servicer for any losses due to the Master Servicer’s negligence. 
  
 (d) Any subservicing agreement and any other transactions or services
relating to the Mortgage Loans involving a subservicer shall be deemed to be between the subservicer and the Master Servicer alone and the Backup Servicer, the Indenture Trustee and the Noteholders shall not be deemed parties thereto and shall have
no claims, rights, obligations, duties or liabilities with respect to any Subservicer except as set forth in Subsection (e) of this Section 5.13 and the related Subservicing Agreement. 
  
 (e) Notwithstanding any contrary provision contained herein, in connection with the assumption of the responsibilities,
duties and liabilities and of the authority, power and rights of the Master Servicer hereunder by the Backup Servicer, the Indenture Trustee or any other successor master servicer pursuant to Section 7.02, it is understood and agreed that the Master
Servicer’s rights and obligations under any subservicing agreement then in force between the Master Servicer and a subservicer may be assumed or terminated (without cost) by the Backup Servicer, the Indenture Trustee or any other successor
master servicer at its option as successor to the Master Servicer. 
  
 The Master Servicer shall, upon request of the Backup Servicer or the Indenture Trustee, but at the expense of the Master Servicer, deliver to the assuming party documents and records relating to each subservicing agreement and an
accounting of amounts collected and held by it and otherwise use its best reasonable efforts to effect the orderly and efficient transfer of the subservicing agreements to the assuming party, without the payment of any fee by the Backup Servicer,
the Indenture Trustee, any Noteholders, notwithstanding any contrary provision in any subservicing agreement. 
  

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 Section 5.14. Reports to the Indenture Trustee; Collection Account Statements. Not later than
twenty-five (25) days after each Payment Date, the Master Servicer shall provide to the Indenture Trustee and the Backup Servicer a statement, certified by a Servicing Officer, setting forth the status of the Collection Account as of the close of
business on the last day of the Due Period preceding such Payment Date, stating that all payments required by this Agreement to be made by the Master Servicer on behalf of the Indenture Trustee have been made (or if any required payment has not been
made by the Master Servicer, specifying the nature and status thereof) and showing, for the period covered by such statement, the aggregate of deposits into and withdrawals from the Collection Account and the aggregate of deposits into the Payment
Account as specified in Section 6.01. Such statement shall also state the aggregate Stated Principal Balance and the aggregate unpaid principal balance of all the Mortgage Loans as of the close of business on the last day of the month preceding the
month in which such Payment Date occurs. 
  
 Section 5.15.
Optional Purchase of Defaulted Mortgage Loans. (a) The Seller, in its sole discretion, shall have the right to elect (by written notice sent to the Master Servicer and the Indenture Trustee), but shall not be obligated, to purchase for its
own account from the Trust any Mortgage Loan which is ninety (90) days or more Delinquent in the manner at the Loan Repurchase Price (except that the amount described in the definition of Loan Repurchase Price shall in no case be net of the
Servicing Fee and the Backup Servicing Fee). The purchase price for any Mortgage Loan purchased hereunder shall be deposited in the Collection Account and the Indenture Trustee, upon the Indenture Trustee’s receipt of written notice by the
Master Servicer of such deposit, shall release or cause to be released to the purchaser of such Mortgage Loan the related Indenture Trustee’s Mortgage File and shall execute and deliver such instruments of transfer or assignment prepared by the
purchaser of such Mortgage Loan, in each case without recourse, as shall be necessary to vest in the purchaser of such Mortgage Loan any Mortgage Loan released pursuant hereto and the purchaser of such Mortgage Loan shall succeed to all the
Indenture Trustee’s right, title and interest in and to such Mortgage Loan and all security and documents related thereto. Such assignment shall be an assignment outright and not for security. The purchaser of such Mortgage Loan shall thereupon
own such Mortgage Loan, and all security and documents, free of any further obligation to the Indenture Trustee or the Noteholders with respect thereto. 
  
 (b) After the Seller or its Affiliate has repurchased any Mortgage Loans which are 90 days or more Delinquent in an aggregate amount equal to 1% of the
Maximum Collateral Amount, then notwithstanding the foregoing, the Seller or its Affiliate may only exercise its option pursuant to this Section 5.15 with respect to the Mortgage Loan or Mortgage Loans (including REO Mortgage Loans) that have been
Delinquent for the longest period at the time of such repurchase. 
  

 40 

 Section 5.16. Reports to be Provided by the Master Servicer and the Backup Servicer. (a) By 3:00
p.m. eastern time on the second Business Day following the fifteenth (15th) day of each month (the “Servicer Reporting Date”), the Master Servicer shall deliver to the Indenture Trustee, the Backup Servicer, the Underwriter, Intex
and Bloomberg a Servicer Remittance Report for the related Servicer Remittance Date in an electronic format reporting on a loan-by-loan basis in such format as the Master Servicer and the Indenture Trustee may agree, and setting forth the following
information with respect to all Mortgage Loans as well as a break out as to each Loan Group as of the close of business on the last Business Day of the prior calendar month (except as otherwise provided in clause (v) below): 
  
 (i) the total number of Mortgage Loans and the Aggregate
Principal Balances thereof, together with the number, Aggregate Principal Balances of such Mortgage Loans and the percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans
to the Aggregate Principal Balance of all Mortgage Loans (A) 30-59 days Delinquent, (B) 60-89 days Delinquent and (C) 90 or more days Delinquent; 
  
 (ii) the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based on the Aggregate Principal Balances of the
Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans in foreclosure proceedings and the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based
on the Aggregate Principal Balances of the Mortgage Loans) of any such Mortgage Loans also included in any of the statistics described in the foregoing clause (i); 
  
 (iii) the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based on the Aggregate
Principal Balances of the Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans relating to Mortgagors in bankruptcy proceedings and the number, Aggregate Principal
Balances of all Mortgage Loans and percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of any such Mortgage Loans also included in any of the statistics described in the foregoing clause (i); 
  
 (iv) the number, Aggregate Principal Balances of all
Mortgage Loans and percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans relating to REO Properties and the
number, Aggregate Principal Balances of all Mortgage Loans and percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of any such Mortgage Loans also included in any of the statistics described in the foregoing clause (i);

  
 (v) the weighted average Mortgage Interest
Rate for the Mortgage Loans in Loan Group I and Loan Group II, in each case, as of the Due Date occurring in the Due Period related to such Payment Date; 
  
 (vi) the weighted average remaining term to stated maturity of all Mortgage Loans; 
  
 (vii) the book value of any REO Property; 
  
 (viii) the Cumulative Loan Loss Percentage and the Rolling
Six Month Delinquency Ratio as of the related Payment Date; 
  

 41 

 (ix) with respect to each Monthly Payment, the amount of such remittance allocable to
principal (including a separate breakdown of any Principal Prepayment, including the date of such prepayment, and any Prepayment Charges); 
  
 (x) with respect to each Monthly Payment, the amount of such remittance allocable to interest; 
  
 (xi) the number and the Aggregate Principal Balance of
Mortgage Loans repurchased pursuant to Section 5.15; and 
  
 (xii) such other loan level information as either the Indenture Trustee may reasonably request to enable it to prepare the Indenture Trustee’s Remittance Report. 
  
 (b) [Reserved]. 
  
 (c) In addition to the contingent obligations of the Backup Servicer under this Agreement, the Backup Servicer shall
establish and maintain a system of transaction accounting in regard to the Mortgage Loans substantially similar to that maintained by the Master Servicer and post to such system all information relating to the Mortgage Loans obtained by the Backup
Servicer pursuant to Section 5.16 and 5.18, to enable the Backup Servicer to perform the obligations of a successor master servicer immediately upon any termination or resignation of the Master Servicer. The Backup Servicer’s obligations
described in this Section 5.16(c) and its obligations pursuant to Section 7.02 shall be the only obligations of the Backup Servicer under this Agreement. All such obligations of the Backup Servicer are effective as of the date of this Agreement.

  
 Section 5.17. [Reserved]. 
  
 Section 5.18. Delinquency Advances. If, on any Servicer Remittance
Date, the Master Servicer determines that any Monthly Payments due during the related Due Period have not been received as of the end of the related Due Period, the Master Servicer shall determine the amount of any Delinquency Advance required to be
made with respect to the related Payment Date. The Master Servicer shall deliver, one (1) Business Day after such Servicer Remittance Date, a magnetic tape, diskette (or such other electronic medium used by the Master Servicer for such purpose) to
the Backup Servicer indicating the payment status of each Mortgage Loan as of the date which is two Business Days prior to such Servicer Remittance Date. The Master Servicer shall include in the amount to be deposited in the Payment Account on such
Servicer Remittance Date an amount equal to the Delinquency Advance, if any, which deposit may be made in whole or in part from funds in the Collection Account being held for future payment or withdrawal on or in connection with Payment Dates in
subsequent months, other than any such amounts which are voluntary Principal Prepayments in full. Any funds being held for future payment to Noteholders and so used shall be replaced by the Master Servicer from its own funds by deposit in the
Collection Account on or before the Business Day preceding any future Servicer Remittance Date to the extent that funds in the Collection Account on such Servicer Remittance Date shall be less than the Servicer Remittance Amount for such Payment
Date. 
  
 The Master Servicer shall designate on its records the
specific Mortgage Loans and related installments (or portions thereof) as to which such Delinquency Advance shall be deemed to have been made, such determination being conclusive for purposes of withdrawals from the Collection Account pursuant to
Section 5.03 hereof. 
  

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 Section 5.19. Indemnification; Third Party Claims. The Master Servicer agrees to indemnify and to
hold each of the Trust, the Owner Trustee, the Seller, the Sponsor, the Backup Servicer, the Indenture Trustee and each Noteholder harmless against any and all claims, losses, penalties, fines, forfeitures, legal fees and related costs, judgments,
and any other costs, fees and expenses (including attorneys’ fees and expenses) that the Trust, the Owner Trustee, the Seller, the Sponsor, the Backup Servicer, the Indenture Trustee and any Noteholder (or any director, officer, employee or
agent of the foregoing) may sustain in any way related to the failure of the Master Servicer to perform its duties and service the Mortgage Loans in compliance with the terms of this Agreement and the other Basic Documents and in connection with the
Indenture as provided in Section 6.16 thereof. Each indemnified party and the Master Servicer shall immediately notify the other indemnified parties if a claim is made by a third party with respect to this Agreement and the other Basic Documents and
the Master Servicer shall assume the defense of any such claim and pay all expenses in connection therewith, including reasonable counsel fees, and promptly pay, discharge and satisfy any judgment or decree which may be entered against the Trust,
the Owner Trustee, the Seller, the Sponsor, the Backup Servicer, the Master Servicer, the Indenture Trustee and/or a Noteholder (or any director, officer, employee or agent of the foregoing) in respect of such claim. The obligations of the Master
Servicer under this Section 5.19 arising prior to any resignation or termination of the Master Servicer hereunder shall survive the resignation or termination of the Master Servicer or the termination of this Agreement or the Indenture. 

 
 Section 5.20. Maintenance of Corporate Existence and Licenses; Merger
or Consolidation of the Master Servicer and Backup Servicer. (a) Each of the Master Servicer and the Backup Servicer will keep in full effect its existence, rights and franchises as a corporation, will obtain and preserve its qualification to do
business as a foreign corporation in each jurisdiction necessary to protect the validity and enforceability of this Agreement or any of the Mortgage Loans and to perform its duties under this Agreement and will otherwise operate its business so as
to cause the representations and warranties under Section 3.01 hereof to be true and correct at all times under this Agreement. 
  
 (b) Any corporation into which the Master Servicer or the Backup Servicer may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the Master Servicer or the Backup Servicer shall be a party, or any corporation succeeding to all or substantially all of the business of the Master Servicer or the Backup
Servicer, shall be the successor of the Master Servicer or the Backup Servicer, as applicable, hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto provided that, in the case of the
Master Servicer, such corporation meets the qualifications set forth in Section 7.02(b). The Master Servicer or the Backup Servicer, as applicable, shall send notice of any such merger or consolidation to the Owner Trustee, the Indenture Trustee and
the Master Servicer or the Backup Servicer, as applicable. 
  
 Section 5.21. Assignment of Agreement by Master Servicer and Backup Servicer; Master Servicer and Backup Servicer Not to Resign. Neither the Master Servicer nor the Backup 
  

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 Servicer shall assign this Agreement nor resign from the obligations and duties hereby imposed on it except upon the
determination that the Master Servicer’s or Backup Servicer’s duties hereunder are no longer permissible under applicable law and that such incapacity cannot be cured by the Master Servicer or the Backup Servicer, as applicable, without
incurring unreasonable expense. Any such determination that the Master Servicer’s or the Backup Servicer’s duties hereunder are no longer permissible under applicable law permitting the resignation of the Master Servicer or the Backup
Servicer, as applicable, shall be evidenced by a written Opinion of Counsel (who may be counsel for the Master Servicer or the Backup Servicer) to such effect delivered to the Indenture Trustee, the Trust, the Seller, the Sponsor and the Backup
Servicer or the Master Servicer, as applicable. No such resignation of the Master Servicer shall become effective until the Backup Servicer or a successor master servicer appointed in accordance with the terms of this Agreement has assumed the
Master Servicer’s responsibilities and obligations hereunder in accordance with Section 7.02. The Master Servicer or the Backup Servicer, as applicable, shall provide the Indenture Trustee and the Rating Agencies with 30 days’ prior
written notice of its intention to resign pursuant to this Section 5.21. 
  
 Section 5.22. Periodic Filings with the Securities and Exchange Commission Additional Information. 
  
 (a) The Indenture Trustee shall reasonably cooperate with the Master Servicer in connection with the satisfaction of the reporting requirements under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Indenture Trustee shall prepare on behalf of the Trust Fund any Forms 8-K and 10-K customary for similar securities as required by the Exchange Act and the Rules and
Regulations of the Securities and Exchange Commission (the “Commission”) thereunder, and shall file (via the Commission’s Electronic Data Gathering and Retrieval System) such Forms on behalf of the Master Servicer. The Master Servicer
hereby grants to the Indenture Trustee a limited power of attorney to execute and file each such Form 8-K but only to the extent no accompanying certification is required to be filed on behalf of the Master Servicer. Such power of attorney shall
continue until the earlier of (i) receipt by the Indenture Trustee from the Master Servicer of written termination of such power of attorney and (ii) termination of the Trust Fund. The Master Servicer shall execute the Form 10-Ks. The Indenture
Trustee shall have no liability with respect to any failure to properly prepare or file such periodic reports resulting from or relating to the Indenture Trustee’s inability or failure to obtain any information not resulting from its own
negligence or willful misconduct. 
  
 (b) Each Form 8-K shall be
filed by the Indenture Trustee within 15 days after each Payment Date, with a copy of the Indenture Trustee’s Remittance Report for such Payment Date as an exhibit thereto. Prior to March 30th of each year (or such earlier date as may be
required by the Exchange Act and the Rules and Regulations of the Commission) commencing with 2005, the Indenture Trustee shall file a Form 10-K, in substance as required by applicable law or the Commission’s staff interpretations. Such Form
10-K shall include as exhibits the Master Servicer’s annual statement of compliance described under Section 5.09 and the accountant’s report described under Section 5.10, in each case to the extent they have been timely delivered to the
Indenture Trustee. If they are not so timely delivered, the Indenture Trustee shall file the incomplete Form 10-K, together with a Form 12b-25, and thereafter shall file an amended Form 10-K including such documents as exhibits reasonably promptly
after they 
  

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 are delivered to the Indenture Trustee. The Indenture Trustee shall have no liability with respect to any failure to
properly prepare or file such periodic reports resulting from or relating to the Indenture Trustee’s inability or failure to obtain any information not resulting from its own negligence or willful misconduct. The Form 10-K shall also include a
certification in the form attached hereto as Exhibit G (the “Certification”), which shall be signed by the senior officer of the Master Servicer in charge of securitization. The Indenture Trustee shall prepare and deliver each Form
10-K to the Master Servicer for execution no later than March 20th of each year. The Master Servicer shall return the executed Form 10-K and the Certification to the Indenture Trustee for filing no later than March 25th of each year. 
  
 (c) The Master Servicer shall indemnify and hold harmless the Indenture
Trustee and its officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses arising out of or based upon a
breach of the Master Servicer’s obligations under this Section or the Sponsor’s negligence, bad faith or willful misconduct in connection therewith. 
  

(d) Upon any filing with the Commission, the Indenture Trustee shall promptly deliver to the Master Servicer a copy of any executed report, statement
or information. 
  
 (e) The Indenture Trustee shall prepare and
file a voluntary suspension of filing on Form 15 as soon as it is permitted to do so under the Exchange Act and the rules and regulations of the Commission. 
  
 Section 5.23. Administrative Duties. (a) Duties with Respect to the Basic Documents. The Master Servicer shall perform all its duties and
the duties of the Trust under the Basic Documents. In addition, the Master Servicer shall consult with the Owner Trustee as the Master Servicer deems appropriate regarding the duties of the Trust under the Basic Documents. The Master Servicer shall
monitor the performance of the Trust and shall advise the Owner Trustee when action is necessary to comply with the Trust’s duties under the Basic Documents. The Master Servicer shall prepare for execution by the Trust or shall cause the
preparation by other appropriate Persons of all such documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the Trust to prepare, file or deliver pursuant to the Basic Documents. In furtherance of the
foregoing, the Master Servicer shall take all necessary action that is the duty of the Trust to take pursuant to the Basic Documents. 
  
 (b) Duties with Respect to the Trust. In addition to the duties of the Master Servicer set forth in this Agreement or any of the Basic Documents,
the Master Servicer shall perform such calculations and shall prepare for execution by the Trust or the Owner Trustee or shall cause the preparation by other appropriate Persons of all such documents, reports, filings, instruments, certificates and
opinions as it shall be the duty of the Trust or the Owner Trustee to prepare, file or deliver pursuant to this Agreement or any of the Basic Documents or under state and federal tax and securities laws and shall take all appropriate action that it
is the duty of the Trust to take pursuant to this Agreement or any of the Basic Documents. In accordance with the directions of the Trust or the Owner Trustee, the Master Servicer shall administer, perform, or supervise the performance of such other
activities in connection with the Basic Documents as are not covered by any of the foregoing provisions and as are expressly requested by the Trust or the Owner Trustee and are reasonably within the capability of the Master Servicer. 
  

 45 

 In carrying out the foregoing duties under this Agreement, the Master Servicer may enter into
transactions with or otherwise deal with any of its Affiliates; provided, however, that the terms of any such transactions or dealings shall be in accordance with any directions received from the Trust and shall be, in the Master Servicer’s
opinion, no less favorable to the Trust in any material respect. 
  
 (c) Additional Information to be Furnished to the Issuer. The Master Servicer shall furnish to the Owner Trustee from time to time such additional information regarding the Trust or the Basic Documents as the Owner Trustee shall
reasonably request. The Master Servicer shall prepare, execute and deliver all certificates or other documents required to be delivered by the Issuer pursuant to the Sarbanes-Oxley Act of 2002 or the rules and regulations promulgated thereunder.

  
 ARTICLE VI 
  
 APPLICATION OF FUNDS 
  
 Section 6.01. Deposits to the Payment Account. By 12:00 noon (Eastern
Time) on each Servicer Remittance Date, the Master Servicer shall remit to the Indenture Trustee for deposit in the Payment Account, from funds on deposit in the Collection Account, an amount equal to the Servicer Remittance Amount with respect to
the related Payment Date, minus any portion thereof payable to the Master Servicer or the Backup Servicer pursuant to Section 5.03. 
  
 Section 6.02. Collection of Money. Except as otherwise expressly provided herein, the Indenture Trustee may demand payment or delivery of all money
and other property payable to or receivable by the Indenture Trustee pursuant to this Agreement, including all payments due on the Mortgage Loans in accordance with the respective terms and conditions of such Mortgage Loans and required to be paid
over to the Indenture Trustee by the Master Servicer. The Indenture Trustee shall hold all such money and property received by it, as part of the Trust Estate and shall apply it as provided in the Indenture. 
  
 Section 6.03. Application of Principal and Interest. In the event that
Net Liquidation Proceeds on a Liquidated Mortgage Loan are less than the Principal Balance of the related Mortgage Loan plus accrued interest thereon, or any Mortgagor makes a partial payment of any Monthly Payment due on a Mortgage Loan, such Net
Liquidation Proceeds or partial payment shall be applied to payment of the related Mortgage Note as provided therein, and if not so provided, first to interest accrued at the Mortgage Interest Rate and then to principal. 
  
 Section 6.04. [Reserved]. 
  
 Section 6.05. Compensating Interest. Not later than the Servicer
Remittance Date, the Master Servicer shall remit to the Indenture Trustee (without right to reimbursement therefor) for deposit into the Payment Account, an amount equal to, for all of the Mortgage Loans, the lesser of (a) the Prepayment Interest
Shortfalls for all of the Mortgage Loans for the related Payment Date resulting from Principal Prepayments in full during the related Prepayment Period and (b) its aggregate Servicing Fee with respect to all of the Mortgage Loans for the related Due
Period (the “Compensating Interest”). 
  

 46 

 Section 6.06. [Reserved] 
  
 ARTICLE VII 
  
 SERVICER DEFAULT 
  
 Section 7.01. Servicer Events of Default. (a) I. The following events shall each constitute a “Servicer Event of Default” hereunder:

  
 (i) any failure by the Master Servicer to
remit to the Indenture Trustee any payment required to be made by the Master Servicer under the terms of this Agreement (other than Servicing Advances covered by clause (ii) below and Delinquency Advances, which shall have no cure period), which
continues unremedied for one (1) Business Day after the date upon which notice of such failure, requiring the same to be remedied, shall have been given to the Master Servicer by the Indenture Trustee or to the Master Servicer and Indenture Trustee
by the Noteholders affected thereby evidencing Percentage Interests of at least 25%; provided however that any failed remittance cured within one Business Day of such failure shall include interest accrued at the Prime Rate (as set forth in the Wall
Street Journal) on the amount of such remittance from and including the date the remittance was required to be made to and including the date the remittance was actually made; 
  
 (ii) the failure by the Master Servicer to make any required Servicing Advance, which failure continues
unremedied for a period of thirty (30) days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Master Servicer by the Indenture Trustee or to the Master Servicer and the Indenture
Trustee by the Noteholders affected thereby evidencing Percentage Interests of at least 25%; 
  
 (iii) any failure on the part of the Master Servicer duly to observe or perform in any material respect any other of the covenants or
agreements on the part of the Master Servicer contained in this Agreement, or the failure of any representation and warranty made pursuant to Section 3.01(a) hereof to be true and correct which continues unremedied for a period of thirty (30) days
after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Master Servicer by the Indenture Trustee or to the Master Servicer and the Indenture Trustee by the Noteholders affected thereby
evidencing Percentage Interests of at least 25%; 
  
 (iv) a decree or order of a court or agency or supervisory authority having jurisdiction in an involuntary case under any present or future federal or state bankruptcy, insolvency or similar law or for the appointment of a conservator or
receiver or liquidation in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered against the Master Servicer and such decree
or order shall have remained in force, undischarged or unstayed for a period of ninety (90) days; 
  

 47 

 (v) the Master Servicer shall consent to the appointment of a conservator or receiver or
liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to the Master Servicer or of or relating to all or substantially all of the Master Servicer’s property; 

 
 (vi) the Master Servicer shall admit in writing its
inability generally to pay its debts as they become due, file a petition to take advantage of any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment of its
obligations; 
  
 (vii) if on any Payment Date the
Rolling Six Month Delinquency Ratio exceeds 14.0%; 
  
 (viii) if on any Payment Date, the Cumulative Loan Loss Percentage exceeds the following percentages on any Payment Date during the following periods: 
  

				
	 Payment Date Occurring During

	  	Percentage

	 
	 August 2004 - July 2006
	  	1.70	%
	 August 2006 - July 2007
	  	2.50	%
	 August 2007 - July 2008
	  	3.20	%
	 August 2008 and thereafter
	  	4.50	%

  
 (ix)
the occurrence of an Event of Default under the Indenture. 
  
 II.
The following events shall each constitute a “Backup Servicer Event of Default” hereunder: 
  
 (i) any failure on the part of the Backup Servicer duly to observe or perform in any material respect any other of the covenants or
agreements on the part of the Backup Servicer contained in this Agreement, or the failure of any representation and warranty made pursuant to Section 3.03(a) hereof to be true and correct which continues unremedied for a period of thirty (30) days
after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Backup Servicer by the Indenture Trustee or to the Backup Servicer and the Indenture Trustee by the Noteholders affected thereby
evidencing Percentage Interests of at least 25%; 
  
 (ii) a decree or order of a court or agency or supervisory authority having jurisdiction in an involuntary case under any present or future federal or state bankruptcy, insolvency or similar law or for the appointment of a conservator or
receiver or liquidation in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered against the Backup Servicer and such decree
or order shall have remained in force, undischarged or unstayed for a period of ninety (90) days; 
  

 48 

 (iii) the Backup Servicer shall consent to the appointment of a conservator or receiver
or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to the Backup Servicer or of or relating to all or substantially all of the Backup Servicer’s property; and

  
 (iv) the Backup Servicer shall admit in
writing its inability generally to pay its debts as they become due, file a petition to take advantage of any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment of its
obligations. 
  
 So long as a Servicer Event of Default shall have
occurred and not have been remedied: (x) with respect solely to Section 7.01(a)(I)(i), if such payment is in respect of Delinquency Advances or Compensating Interest owing by the Master Servicer and such payment is not made by 12:00 noon New York
time on the second Business Day prior to the applicable Payment Date, the Indenture Trustee, upon receipt of written notice or actual knowledge by a Responsible Officer of the Indenture Trustee of such failure, shall give immediate telephonic and
facsimile notice of such failure to a Servicing Officer of the Master Servicer and the Backup Servicer and the Indenture Trustee may, and upon request of the Holders representing more than 50% of the Note Principal Balance, shall, terminate all of
the rights and obligations of the Master Servicer under this Agreement, except for the Master Servicer’s indemnification obligation under Section 5.19, and the Backup Servicer, the Indenture Trustee (if it is the successor master servicer) or a
successor master servicer appointed in accordance with Section 7.02, shall immediately make such Delinquency Advance or payment of Compensating Interest as provided in Section 7.02 and assume, pursuant to Section 7.02 hereof, the duties of a
successor master servicer; (y) with respect to that portion of Section 7.01(a)(I)(i) not referred to in the preceding clause (x) and with respect to clauses (ii), (iii), (iv), (v), (vi) and (xii) of Section 7.01(a)(I) or clauses (i) through (iv) of
Section 7.01(a)(II), upon receipt of written notice or actual knowledge by a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall, but only at the direction of the Majority Noteholders, by notice in writing to the Master
Servicer, the Backup Servicer and a Responsible Officer of the Indenture Trustee, and in addition to whatever rights such Noteholders may have at law or equity to damages, including injunctive relief and specific performance, terminate all the
rights and obligations of the Master Servicer or Backup Servicer, as applicable, under this Agreement, except for the Master Servicer’s indemnification obligations under Section 5.19, and in and to the Mortgage Loans and the proceeds thereof,
as Master Servicer; and (z) with respect to clauses (vii)-(xi) of Section 7.01(a)(I), upon receipt of written notice or actual knowledge by a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall, after notice in writing to the
Master Servicer, the Backup Servicer and a Responsible Officer of the Indenture Trustee, terminate all the rights and obligations of the Master Servicer under this Agreement, except for the Master Servicer’s indemnification obligations under
Section 5.19, and in and to the Mortgage Loans and the proceeds thereof, as Master Servicer. Upon receipt by the Master Servicer of such written notice, all authority and power of the Master Servicer under this Agreement, whether with respect to the
Mortgage Loans or otherwise, shall, subject to Section 7.02, pass to and be vested in the Backup Servicer, or another successor master servicer, and the Backup Servicer or another successor master servicer is hereby authorized and empowered to
execute and deliver, on behalf of the Master Servicer, as attorney-in-fact or otherwise, at the expense of the Master Servicer, any and all documents and other instruments and do or cause to be done all other acts or things necessary or appropriate
to 
  

 49 

 effect the purposes of such notice of termination, including, but not limited to, the transfer and endorsement or
assignment of the Mortgage Loans and related documents. The Master Servicer agrees to cooperate (and to pay any related costs and expenses) with the Indenture Trustee and the Backup Servicer or another successor master servicer in effecting the
termination of the Master Servicer’s responsibilities and rights hereunder, including, without limitation, the transfer to the Backup Servicer or another successor master servicer, for administration by it of all amounts which shall at the time
be credited by the Master Servicer to the Collection Account or thereafter received with respect to the Mortgage Loans. The Indenture Trustee shall promptly notify the Rating Agencies of the occurrence of a Servicer Event of Default upon discovery
or receipt of notice by a Responsible Officer of the Indenture Trustee; provided, however, the Indenture Trustee shall not be obligated to monitor the Master Servicer’s compliance with the terms hereof or to determine the occurrence of any
Servicer Event of Default. 
  
 Section 7.02. Backup Servicer to
Act: Appointment of Successor. (a) (i) On and after the time the Master Servicer receives a notice of termination pursuant to Section 7.01, or the Indenture Trustee receives the resignation of the Master Servicer evidenced by an Opinion of
Counsel pursuant to Section 5.21, or the Master Servicer is removed as Master Servicer pursuant to this Article VII, in which event the Indenture Trustee shall promptly notify the Rating Agencies, and except as otherwise provided in this Section
7.02, the Backup Servicer (provided the Backup Servicer receives 20 days’ prior written notice) or another successor master servicer shall be the successor in all respects to the Master Servicer in its capacity as master servicer under this
Agreement and the transactions set forth or provided for in this Agreement, and shall be subject to all the responsibilities, restrictions, duties, liabilities and termination provisions relating thereto placed on the Master Servicer by the terms
and provisions of this Agreement. The Backup Servicer or another successor master servicer and the Indenture Trustee shall take such action, consistent with this Agreement, as shall be necessary to effect any such succession. If the Backup Servicer
or any other successor master servicer is acting as Master Servicer hereunder, it shall be subject to termination under Section 7.01 upon the occurrence or continuation of a Servicer Event of Default applicable to it as Master Servicer. The Backup
Servicer hereby agrees to act as successor master servicer pursuant to the terms of this Agreement upon the termination or resignation of the Master Servicer as provided in this Section 7.02, provided that the Backup Servicer receives all of the
necessary documents relating to the Mortgage Loans and computer records reflecting the status of the Mortgage Loans as of the date of such transfer of servicing. The Backup Servicer will not be obligated to incur any expenses or costs (including,
without limitation, legal fees and the preparation and recording of all intervening assignments of mortgage) in connection with the transfer of servicing of the Mortgage Loans to the Backup Servicer, or to compel the performance of any obligations
by any party to this Agreement. Any successor master servicer and the Backup Servicer prior to its becoming the successor master servicer shall not be liable for any actions, omissions or defaults of any master servicer prior to it or breaches of
representations and warranties of the master servicer prior to it. The Backup Servicer or any other successor master servicer, as successor master servicer, shall be obligated to pay Compensating Interest pursuant to Section 6.05 in any event and to
make Delinquency Advances pursuant to Section 5.18 unless, and only to the extent the Backup Servicer determines reasonably and in good faith that such advances would not be recoverable from the proceeds of the related Mortgage Loan pursuant to
Section 5.03, such determination to be evidenced by a certification of a Responsible Officer of the Backup Servicer delivered to the Indenture Trustee. Furthermore, the Backup Servicer shall not be obligated to 
  

 50 

 fund any resulting discrepancy or shortfall in the Collection Account. Upon the transfer of the servicing of the Mortgage
Loans, the Indenture Trustee shall provide the Backup Servicer with an officer’s certificate that contains: (i) a complete description of all Events of Default by the Master Servicer under the Agreement actually known by the Indenture Trustee
which have not been fully cured and (ii) confirmation that the Servicer Remittance Report and the reports described in Sections 5.09 and 5.10 have been timely filed by the Master Servicer with the Indenture Trustee. 
  
 (ii) In the event that the Backup Servicer is terminated or
resigns pursuant to this Agreement or otherwise becomes unable to perform its obligations under this Agreement, the Indenture Trustee will appoint a successor backup servicer in accordance with the provisions of this Section 7.02; provided, that any
successor backup servicer, shall satisfy the requirements set forth in Section 7.02(b) and shall be approved by the Rating Agencies. 
  
 (b) Any successor master servicer or successor backup servicer hereunder (other than the Indenture Trustee) shall be a housing and home finance
institution, bank or mortgage servicing institution which has been designated as an approved seller-servicer by Fannie Mae or Freddie Mac, having equity of not less than $5,000,000 as determined in accordance with GAAP, as the successor to the
Master Servicer or the Backup Servicer hereunder in the assumption of all or any part of the responsibilities, duties or liabilities of the Master Servicer or the Backup Servicer, as applicable, hereunder. 
  
 (c) In the event the Backup Servicer is the successor master servicer, it
shall be entitled to the same Servicing Compensation (including the Servicing Fee as adjusted pursuant to the definition thereof) and other funds pursuant to Section 5.08 hereof as the Master Servicer if the Master Servicer had continued to act as
master servicer hereunder, and shall continue to be entitled to the Backup Servicing Fee. 
  
 (d) The Indenture Trustee, the Backup Servicer and any successor master servicer or backup servicer shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession. The
Master Servicer agrees to cooperate with the Indenture Trustee, the Backup Servicer and any successor master servicer in effecting the termination of the Master Servicer’s servicing responsibilities and rights hereunder and shall promptly
provide the Indenture Trustee, the Backup Servicer or such successor master servicer, as applicable, at the Master Servicer’s cost and expense, all documents and records reasonably requested by it to enable it to assume the Master
Servicer’s functions hereunder and shall promptly also transfer to the Indenture Trustee, the Backup Servicer or such successor master servicer, as applicable, all amounts that then have been or should have been deposited in the Collection
Account by the Master Servicer or that are thereafter received with respect to the Mortgage Loans, including without limitation all Liquidation Proceeds and Insurance Proceeds, and payments of insurance deductible amounts by the Master Servicer
pursuant to Section 5.04(b) with respect to all insurance claims arising during the Master Servicer’s tenure. Any collections received by the Master Servicer after such removal or resignation shall be endorsed by it to the Backup Servicer or
(if the Backup Servicer is not the successor master servicer) to the Indenture Trustee and remitted directly to the Backup Servicer or the Indenture Trustee, as applicable (or, at the direction of the Indenture Trustee, to any other successor master
servicer). 
  

 51 

 Neither the Backup Servicer, the Indenture Trustee nor any other successor master servicer shall be held liable by reason
of any failure to make, or any delay in making, any payment hereunder or any portion thereof caused by (i) the failure of the Master Servicer to deliver, or any delay in delivering, cash, documents or records to it, or (ii) restrictions imposed by
any regulatory authority having jurisdiction over the Master Servicer hereunder. The Master Servicer shall not resign as Master Servicer until a successor master servicer has been appointed. 
  
 (e) In the event that the Master Servicer is terminated hereunder and no
Backup Servicer is obligated to act as successor master servicer and no other successor master servicer has been appointed hereunder, the Indenture Trustee may appoint a successor master servicer (which may be an affiliate of the Indenture Trustee)
or petition a court of competent jurisdiction to appoint a successor master servicer. Pending appointment of such a successor master servicer hereunder, the Indenture Trustee shall be the successor master servicer and act in such capacity; provided,
however, that the Indenture Trustee, in its capacity as successor master servicer pending appointment of another successor master servicer, (i) shall be obligated to make Delinquency Advances or Servicing Advances only to the extent that the
Indenture Trustee deems such advances to be recoverable, (ii) shall be obligated to make Compensating Interest payments in respect of any Payment Date only to the extent of any Servicing Fee received by the Indenture Trustee in respect of such
Payment Date, (iii) shall not be obligated to perform any other duties or obligations of the Master Servicer hereunder until the Indenture Trustee has received all master servicing records and files from the predecessor master servicer or backup
servicer and in no event later than 90 days following the termination of the Master Servicer; provided, however, the Indenture Trustee shall use its reasonable efforts to perform the duties and obligations of the Master Servicer prior to the end of
such 90 day period, (iv) shall not be obligated to perform any of the administrative duties specified in Section 5.23 hereof, and (v) shall be entitled to payment of all Servicing Compensation and the Backup Servicing Fee. In connection with any
appointment and assumption of duties of a successor master servicer, the Indenture Trustee may make such arrangements for the compensation of such successor master servicer out of payments on Mortgage Loans; provided, however, that such compensation
may not be in excess of that permitted the Master Servicer pursuant to Section 5.08, together with other Servicing Compensation and the Backup Servicing Fee. The Master Servicer, the Indenture Trustee and such successor Master Servicer shall take
such action, consistent with this Agreement, as shall be necessary to effectuate any such succession. 
  
 (f) In the event the Backup Servicer, the Indenture Trustee, or any successor master servicer incurs out-of-pocket expenses other than Servicing Advances
or Delinquency Advances in connection with the transfer of master servicing hereunder, which expenses are required to be borne by the Master Servicer hereunder, and such expenses are not promptly reimbursed by the Master Servicer or recoverable out
of amounts reimbursable to the Master Servicer out of the Collection Account, the Indenture Trustee shall make such reimbursement to the applicable party out of funds in the Payment Account on any Payment Date after all Payments to Noteholders on
such Payment Date have been made but before any distribution to the Certificateholders. The right of the Indenture Trustee to reimbursement from the Payment Account for any of the Indenture Trustee’s costs and expenses in connection with the
transfer of any master servicing hereunder shall be in addition to any rights of the Indenture Trustee to indemnification and reimbursement under the Indenture. 
  

 52 

 (g) In the event that the Master Servicer is terminated or resigns hereunder, and at such time the Master
Servicer has made unreimbursed Delinquency Advances or Servicing Advances out of its own funds, 
  
 (i) any such Delinquency Advances or Servicing Advances shall be allocated by the successor master servicer in whole or in part to
specific Mortgage Loans which are delinquent at the time of the transfer of master servicing, which allocation shall be based on loan-level accounts of the portion of each Delinquency Advance or Servicing Advance which has been funded by the Master
Servicer from its own funds consistently maintained by the former Master Servicer, or, if no such accounts exist, then in the successor master servicer’s discretion; 
  
 (ii) following the transfer of master servicing, the successor master servicer shall reimburse the former
Master Servicer for such Delinquency Advances and Servicing Advances in accordance with the allocations determined in accordance with clause (i) above only out of the proceeds of the Mortgage Loans to which they relate and otherwise subject to
Section 5.03, or, to the extent the successor master servicer determines any such Delinquency Advance or Servicing Advance to be a Nonrecoverable Advance, out of any funds in the Collection Account. 
  
 (h) In connection with the termination or resignation of the Master Servicer
hereunder, the successor Master Servicer shall represent and warrant that it is a member of MERS in good standing and shall agree to comply in all material respects with the rules and procedures of MERS in connection with the servicing of the
Mortgage Loans that are registered with MERS, in which case the predecessor Master Servicer shall cooperate with the successor Master Servicer in causing the MERS System to be revised to reflect the transfer of servicing to the successor Master
Servicer as necessary under MERS’ rules and regulations. 
  
 Section 7.03. Waiver of Defaults. The Majority Noteholders may, on behalf of all Noteholders, waive any events permitting removal of the Master Servicer as master servicer pursuant to this Article VII; provided,
however, that the Majority Noteholders may not waive a default in making a required payment on a Note without the consent of the Holder of such Note. Upon any waiver of a past default, such default shall cease to exist, and any Servicer Event
of Default arising therefrom shall be deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to any subsequent or other default or impair any right consequent thereto except to the extent expressly so waived.
Notice of any such waiver shall be given by the Indenture Trustee to the Rating Agencies. 
  
 Section 7.04. [Reserved]. 
  
 Section 7.05. [Reserved]. 
  
 Section 7.06. [Reserved].

  
 Section 7.07. [Reserved]. 
  

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 ARTICLE VIII 
  
 TERMINATION 
  
 Section 8.01. Termination. (a) Subject to Section 8.02, this Agreement shall terminate upon notice to the Indenture Trustee of either: (i) the
disposition of all funds with respect to the last Mortgage Loan and the remittance of all funds due hereunder and the payment of all amounts due and payable to the Indenture Trustee or (ii) mutual consent of the Owner Trustee, on behalf of the
Trust, at the direction of all the Certificateholders, the Indenture Trustee, the Master Servicer and all Noteholders in writing. 
  
 (b) In addition, subject to Section 8.02, the Sponsor may, at its sole option, cost and expense, terminate the Trust in accordance with the terms of
Section 10.01 of the Indenture. 
  
 (c) If on any date, the Master
Servicer determines that there are no outstanding Mortgage Loans and no other funds or assets in the Trust Estate other than funds in the Payment Account, the Master Servicer shall send a final payment notice promptly to the Indenture Trustee, who
shall forward notice to each Noteholder in accordance with Section 8.01(d). 
  
 (d) Notice of any termination, specifying the Payment Date upon which the Trust will terminate and the Noteholders shall surrender their Notes to the Indenture Trustee for final payment and cancellation, shall be
given promptly by the Master Servicer to the Indenture Trustee, who shall forward the notice by letter to Noteholders mailed during the month of such final payment before the Servicer Remittance Date in such month, specifying (i) the Payment Date
upon which final payment of the Notes will be made upon presentation and surrender of Notes at the office of the Indenture Trustee therein designated, (ii) the amount of any such final payment and (iii) that the Record Date otherwise applicable to
such Payment Date is not applicable, payments being made only upon presentation and surrender of the Notes at the office of the Indenture Trustee therein specified. 
  
 (e) In the event that all of the Noteholders do not surrender their Notes for cancellation within six (6) months after the
time specified in the above-mentioned written notice, the Indenture Trustee shall give a second written notice to the remaining Noteholders to surrender their Notes for cancellation and receive the final payment with respect thereto. If within six
(6) months after the second notice, all of the Notes shall not have been surrendered for cancellation, the Indenture Trustee may take appropriate steps, or may appoint an agent to take appropriate steps, to contact the remaining Noteholders
concerning surrender of their Notes and the cost thereof shall be paid out of the funds and other assets which remain subject hereto. If within nine (9) months after the second notice all the Notes shall not have been surrendered for cancellation,
the Certificateholders shall be entitled to all unclaimed funds and other assets which remain subject hereto and the Indenture Trustee upon transfer of such funds shall be discharged of any responsibility for such funds and the Noteholders shall
look only to the Certificateholders for payment. Such funds shall remain uninvested. 
  

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 Section 8.02. Additional Termination Requirements. By their acceptance of the Notes, the Holders
thereof hereby agree to appoint the Master Servicer as their attorney in fact to: (i) adopt a plan of complete liquidation (and the Noteholders hereby appoint the Indenture Trustee as their attorney in fact to sign such plan) as appropriate and (ii)
to take such other action in connection therewith as may be reasonably required to carry out such plan of complete liquidation all in accordance with the terms hereof. 
  
 Section 8.03. Accounting Upon Termination of Master Servicer. Upon termination of the Master Servicer, the Master
Servicer shall, at its expense: 
  
 (a) deliver to the successor
master servicer or, if none shall yet have been appointed, to the Indenture Trustee, the funds in any Account administered by the Master Servicer; 
  
 (b) deliver to the successor master servicer or, if none shall yet have been appointed, to the Indenture Trustee all Mortgage Files and related documents
and statements held by it hereunder and a Mortgage Loan portfolio computer tape (such delivery to take place within 24 hours if the successor master servicer is the Backup Servicer); 
  
 (c) deliver to the successor master servicer, or, if none shall yet have been appointed, to the Indenture Trustee a full
accounting of all funds, including a statement showing the Monthly Payments collected by it and a statement of monies held in trust by it for the payments or charges with respect to the Mortgage Loans; and 
  
 (d) execute and deliver such instruments and perform all acts reasonably
requested in order to effect the orderly and efficient transfer of servicing of the Mortgage Loans to the successor master servicer and to more fully and definitively vest in such successor all rights, powers, duties, responsibilities, obligations
and liabilities of the Master Servicer under this Agreement. 
  
 Section 8.04. Termination of Backup Servicer as Successor Master Servicer. In the event the Backup Servicer becomes the successor master servicer and is terminated for reasons other than the occurrence of a Servicer Event of Default,
then the Backup Servicer will be entitled to a release fee of $10.00 per Mortgage Loan (subject to a minimum of $5,000.00). 
  
 ARTICLE IX 
  
 [RESERVED] 
  
 ARTICLE X 
  
 MISCELLANEOUS PROVISIONS

  
 Section 10.01. Limitation on Liability. (a) None of
the Trust, the Owner Trustee, the Seller, the Sponsor, the Master Servicer, the Backup Servicer, the Indenture Trustee or any of the directors, officers, employees or agents of such Persons shall be under any liability to the Trust, the Noteholders
for any action taken, or for refraining from the taking of any action, in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that this 
  

 55 

 provision shall not protect the Trust, the Owner Trustee, the Seller, the Sponsor, the Master Servicer, the Backup
Servicer, the Indenture Trustee or any such Person against liability for any breach of warranties or representations made herein by such party, or against any specific liability imposed on each such party pursuant to this Agreement or against any
liability which would otherwise be imposed upon such party by reason of willful misfeasance, bad faith or negligence in the performance of duties or by reason of failure to perform its obligations or duties hereunder. The Trust, the Owner Trustee,
the Seller, the Sponsor, the Master Servicer, the Backup Servicer, the Indenture Trustee and any director, officer, employee or agent of such Person may rely in good faith on any document of any kind which, prima facie, is properly executed and
submitted by any appropriate Person respecting any matters arising hereunder. 
  
 (b) It is expressly understood and agreed by the parties hereto that (i) this Agreement is executed and delivered by U.S. Bank Trust National Association, not individually or personally but solely as Owner Trustee
under the Trust Agreement, in the exercise of the powers and authority conferred and vested in it under the Trust Agreement, (ii) each of the representations, undertakings and agreements herein made on the part of the Trust is made and intended not
as personal representations, undertakings and agreements by U.S. Bank Trust National Association but is made and intended for the purpose for binding only the Trust, (iii) nothing herein contained shall be construed as creating any liability on U.S.
Bank Trust National Association, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or
under the parties hereto and (iv) under no circumstances shall U.S. Bank Trust National Association be personally liable for the payment of any indebtedness or expenses of the Trust or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Trust under this Agreement or any other related documents. 
  
 Section 10.02. Acts of Noteholders. (a) Subject to Section 7.04 and except as otherwise specifically provided herein, whenever Noteholder action,
consent or approval is required under this Agreement, such action, consent or approval shall be deemed to have been taken or given on behalf of, and shall be binding upon, all Noteholders if the Majority Noteholders agree to take such action or give
such consent or approval. 
  
 (b) The death or incapacity of any
Noteholder shall not operate to terminate this Agreement or the Trust, nor entitle such Noteholder’s legal representatives or heirs to claim an accounting or to take any action or proceeding in any court for a partition or winding up of the
Trust, nor otherwise affect the rights, obligations and liabilities of the parties hereto or any of them. 
  
 (c) No Noteholder shall have any right to vote (except as expressly provided for herein) or in any manner otherwise control the operation and management
of the Trust, or the obligations of the parties hereto, nor shall anything herein set forth, or contained in the terms of the Notes, be construed so as to constitute the Noteholders from time to time as partners or members of an association; nor
shall any Noteholder be under any liability to any third person by reason of any action taken by the parties to this Agreement pursuant to any provision hereof. 
  

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 Section 10.03. Amendment. (a) This Agreement may be amended from time to time by the Owner
Trustee, on behalf of the Trust, the Master Servicer, the Seller, Sponsor, the Backup Servicer and the Indenture Trustee by written agreement, without notice to or consent of the Noteholders to cure any ambiguity, to correct or supplement any
provisions herein, to comply with any changes in the Code, or to make any other provisions with respect to matters or questions arising under this Agreement which shall not be inconsistent with the provisions of this Agreement; provided,
however, that such action shall not adversely affect in any material respect the interests of any Noteholder and will not prevent the Notes from being characterized as debt for United States federal income tax purposes or cause the Issuer to
be subject to federal income tax, as evidenced by (i) an Opinion of Counsel, at the expense of the party requesting the change, delivered to the Indenture Trustee to such effect or (ii) a letter from each Rating Agency confirming that such action
will not result in the reduction, qualification or withdrawal of the then-current ratings on the Notes. The Indenture Trustee shall give prompt written notice to the Rating Agencies of any amendment made pursuant to this Section 10.03. 

 
 (b) This Agreement may be amended from time to time by the Owner Trustee,
on behalf of the Trust, the Master Servicer, the Seller, the Sponsor, the Backup Servicer and the Indenture Trustee, with the consent of the Noteholders representing more than 50% of the outstanding Principal Balance of the Notes of each affected
Class and all of the Certificateholders; provided, however, that no such amendment shall reduce in any manner the amount of, or delay the timing of, payments received on Mortgage Loans which are required to be paid on any Class of
Notes without the consent of the Holders of such Class of Notes or reduce the percentage for the Holders of which are required to consent to any such amendment without the consent of the Holders of 100% of such Class of Notes affected thereby.

  
 (c) It shall not be necessary for the consent of Holders under
this Section 10.03 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent shall approve the substance thereof. 
  
 (d) In executing, or accepting the additional trusts created by, any supplemental indenture permitted by Article IX of the Indenture or the modifications
thereby of the trusts created by the Indenture, the Indenture Trustee shall be entitled to receive, and (subject to Section 6.01 of the Indenture) shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by the Indenture. The Indenture Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the Indenture Trustee’s own rights, duties or immunities under
the Indenture or otherwise. The Master Servicer, on behalf of the Trust, shall cause executed copies of any supplemental indentures to be delivered to the Rating Agencies. 
  
 Section 10.04. Recordation of Agreement. To the extent permitted by applicable law, this Agreement, or a memorandum
thereof if permitted under applicable law, is subject to recordation in all appropriate public offices for real property records in all of the counties or other comparable jurisdictions in which any or all of the properties subject to the Mortgages
are situated, and in any other appropriate public recording office or elsewhere, such recordation to be effected by the Master Servicer at the Noteholders’ expense on direction and at the expense of Majority Noteholders requesting such
recordation, but only when accompanied by an Opinion of Counsel to the effect that such recordation materially and beneficially affects the interests of the Noteholders or is necessary for the administration or servicing of the Mortgage Loans.

  

 57 

 Section 10.05. Duration of Agreement. This Agreement shall continue in existence and effect until
terminated as herein provided. 
  
 Section 10.06. Notices.
All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given when delivered to (i) in the case of the Master Servicer, Accredited Home Lenders, Inc., 15090 Avenue of Science, San Diego, California
92128, Attention: Director of Operations with a copy to General Counsel; (ii) in the case of the Backup Servicer, Countrywide Home Loans Servicing LP, 450 Countrywide Way, MS SV3-A, Simi Valley, California 93065; (iii) in the case of the Trust,
Accredited Mortgage Loan Trust 2004-3, c/o the Owner Trustee at its Corporate Trust Office, Attention: Corporate Trust Administration; (iv) in the case of the Indenture Trustee, Deutsche Bank National Trust Company, 1761 East St. Andrew Place, Santa
Ana, California 92705-4934 Attn: Trust Administration AC0403; (v) in the case of the Sponsor, Accredited Home Lenders, Inc., 15090 Avenue of Science, San Diego, California 92128, Attention: Investor Reporting; (vi) in the case of the Underwriter,
Lehman Brothers Inc., 745 Seventh Avenue, New York, New York 10019; (vii) in the case of Standard & Poor’s Rating Services, 55 Water Street, New York, New York 10004, Attention: Residential Mortgage Surveillance Group; (viii) in the case of
Moody’s Investors Service, Inc., 99 Church Street, New York, New York 10007, Attention: Keith Wofford; (ix) in the case of Fitch Ratings, One State Street Plaza, New York, New York 10004; (x) in the case of the Seller, Accredited Mortgage Loan
REIT Trust, 15090 Avenue of Science, San Diego, California 92128, Attention: General Counsel and (xi) in the case of the Noteholders, as set forth in the Note Register. Any such notices shall be deemed to be effective with respect to any party
hereto upon the receipt of such notice by such party, except that notices to the Noteholders shall be effective upon mailing or personal delivery. 
  
 Section 10.07. Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be held
invalid for any reason whatsoever, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other covenants, agreements, provisions or terms of this Agreement. 
  
 Section 10.08. No Partnership. Nothing herein contained shall be deemed or construed to create a co-partnership or joint venture between the parties hereto and the services of the Master Servicer shall be
rendered as an independent contractor and not as agent for the Noteholders. 
  
 Section 10.09. Counterparts. This Agreement may be executed in one or more counterparts and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed to be an
original; such counterparts, together, shall constitute one and the same agreement. 
  

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 Section 10.10. Successors and Assigns. This Agreement shall inure to the benefit of and be binding
upon the Trust, the Master Servicer, the Backup Servicer, the Seller, the Sponsor, the Indenture Trustee and the Noteholders and their respective successors and permitted assigns. 
  
 Section 10.11. Headings. The headings of the various sections of this Agreement have been inserted for convenience of
reference only and shall not be deemed to be part of this Agreement. 
  
 Section 10.12. No Petition. The Master Servicer and the Backup Servicer, by entering into this Agreement hereby covenant and agree, and the Noteholders, by the acceptance of their Notes are deemed to covenant and agree, that they
will not at any time institute against the Trust, or join in any institution against the Trust of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States Federal or state
bankruptcy law in connection with any obligations relating to the Certificates, the Notes, this Agreement or any of the other Basic Documents. 
  
 This Section 10.12 will survive for one year and one day following the termination of this Agreement. 
  
 Section 10.13. Third Party Beneficiary. The parties agree that the
Owner Trustee is intended and shall have all rights of a third-party beneficiary of this Agreement. 
  
 Section 10.14. Intent of the Parties. It is the intent of the parties hereto and Noteholders that, for federal income taxes, state and local income
or franchise taxes and other taxes imposed on or measured by income, the Notes be treated as debt. The parties to this Agreement and the Holder of each Note, by acceptance of its Note, and each Beneficial Owner thereof, agree to treat, and to take
no action inconsistent with the treatment of, the related Notes in accordance with the preceding sentence for purposes of federal income taxes, state and local income and franchise taxes and other taxes imposed on or measured by income. 

 
 Section 10.15. GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY
TRIAL. (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (AS OPPOSED TO CONFLICT OF LAWS PROVISIONS) OF THE STATE OF NEW YORK. 
  
 (b) THE TRUST, THE MASTER SERVICER, THE SELLER, THE SPONSOR, THE BACKUP SERVICER AND THE INDENTURE TRUSTEE HEREBY SUBMIT TO
THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY, AND EACH WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL
SUCH SERVICE OF PROCESS BE MADE BY REGISTERED MAIL DIRECTED TO THE ADDRESS SET FORTH IN SECTION 10.06 HEREOF AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN DEPOSITED IN THE U.S. MAILS, POSTAGE
PREPAID. THE TRUST, THE SELLER, THE SPONSOR, THE MASTER SERVICER, THE BACKUP SERVICER AND THE INDENTURE TRUSTEE EACH HEREBY WAIVE ANY OBJECTION BASED ON 
  

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 FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH
LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT. NOTHING IN THIS SECTION 10.15 SHALL AFFECT THE RIGHT OF THE TRUST, THE SELLER, THE SPONSOR, THE MASTER SERVICER, THE BACKUP SERVICER OR THE INDENTURE TRUSTEE TO SERVE LEGAL PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW OR AFFECT ANY OF THEIR RIGHTS TO BRING ANY ACTION OR PROCEEDING IN THE COURTS OF ANY OTHER JURISDICTION. 
  
 (c) THE TRUST, THE SELLER, THE SPONSOR, THE MASTER SERVICER, THE BACKUP SERVICER AND THE INDENTURE TRUSTEE EACH HEREBY WAIVES ANY RIGHT TO HAVE A JURY
PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE ARISING OUT OF, CONNECTED WITH, RELATED TO, OR IN CONNECTION WITH THIS AGREEMENT. INSTEAD, ANY DISPUTE WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

  
 [Remainder of Page Intentionally Left Blank] 
  

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

					
	 ACCREDITED HOME LENDERS, INC.,
 as Sponsor
and Master Servicer

		
	By:	 	 /s/ David E. Hertzel

	Name:	 	David E. Hertzel
	Title:	 	GC, AVP & Ass’t Sec’y
	
	ACCREDITED MORTGAGE LOAN TRUST 2004-3
		
	By:	 	U.S. BANK TRUST NATIONAL ASSOCIATION, not in its individual capacity, but solely as Owner Trustee under the Trust Agreement
			
	 	 	By:	 	 /s/ Nancie J. Arvin

	 	 	 Name:
	 	 Nancie J. Arvin

	 	 	Title:	 	Vice President
	
	ACCREDITED MORTGAGE LOAN REIT TRUST
as Seller
		
	By:	 	 /s/ Charles O. Ryan

	Name:	 	Charles O. Ryan
	Title:	 	Securitization Coordinator, AVP & Ass’t Sec’y
	
	DEUTSCHE BANK NATIONAL TRUST COMPANY,
as Indenture Trustee
		
	By:	 	 /s/ Eiko Akiyama

	Name:	 	Eiko Akiyama
	Title:	 	Associate
		
	By:	 	 /s/ Barbara Campbell

	Name:	 	Barbara Campbell
	Title:	 	Assistant Vice President

  

 61 

			
	 COUNTRYWIDE HOME LOANS SERVICING LP,
as Backup Servicer

		
	By:	 	 /s/ Tom Lin

	Name:	 	Tom Lin
	Title:	 	Senior Vice President

  
 [Signature Page
to Sale and Servicing Agreement] 
  

 62 

 SCHEDULE I 
  
 MORTGAGE LOAN SCHEDULE 
  
 [Delivered to the Sponsor, the Master Servicer, the Seller and the Trustee at the Closing] 
  

 A-1 

 APPENDIX I 
  
 DEFINED TERMS 
  
 [See Appendix I to Indenture] 

 EXHIBIT A 
  
 CONTENTS OF THE MORTGAGE FILE 
  
 With respect to each Mortgage Loan, the Mortgage File shall include each of the following items (copies to the extent the originals have been delivered to
the Indenture Trustee for the benefit of the Noteholders, pursuant to Section 2.05 of the Sale and Servicing Agreement), all of which shall be available for inspection by the Noteholders, to the extent required by applicable laws: 
  
 1. the original Mortgage Note, endorsed without recourse in blank from the
last endorsee thereof, including all intervening endorsements showing a complete chain of endorsement; 
  
 2. the related original Mortgage with evidence of recording indicated thereon or a copy thereof certified by the applicable recording office and if the
Mortgage Loan is registered on the MERS System, such Mortgage or an assignment of the Mortgage shall reflect MERS as the mortgagee of record and shall include the MIN for such Mortgage Loan; 
  
 3. each intervening mortgage assignment, with evidence of recording indicated
thereon or if the original is not available, a copy thereof certified by the applicable recording office, if any, showing a complete chain of assignment from the last assignee thereof of the related Mortgage Loan to the Sponsor (or to MERS, if the
Mortgage Loan is registered on the MERS System), and noting the presence of a MIN (if the Mortgage Loan is registered on the MERS System) (which assignment may, at the Sponsor’s option, be combined with the assignment referred to in subpart (4)
hereof, in which case it must be in recordable form, but need not have been previously recorded); 
  
 4. Unless the Mortgage Loan is recorded on the MERS System, a mortgage assignment in recordable form (which, if acceptable for recording in the relevant
jurisdiction as evidenced by an Opinion of Counsel addressed to the Indenture Trustee, may be included in a blanket assignment or assignments) of each Mortgage from the Sponsor to the Indenture Trustee; 
  
 5. originals of all assumption, modification and substitution agreements in
those instances where the terms or provisions of a Mortgage or Mortgage Note have been modified or such Mortgage or Mortgage Note has been assumed (if any); and 
  

6. an original title insurance policy or title opinion (or (A) a copy of the title insurance policy or title opinion, or (B) the related binder,
commitment or preliminary report, or copy thereof in which case the Sponsor hereby certifies that the original Mortgage has been delivered to the title insurance company that issued such binder, commitment or preliminary report). 
  
 In instances where the original recorded Mortgage or any intervening mortgage
assignment or a completed assignment of the Mortgage in recordable form cannot be delivered by the Sponsor to the Indenture Trustee prior to or concurrently with the execution and delivery of this Agreement, due to a delay in connection with
recording, the Sponsor may: 
  

 A-1 

 (a) with respect to item (3) above, in lieu of delivering such original recorded Mortgage or intervening
mortgage assignment, deliver to the Indenture Trustee, a copy thereof; provided, that the Sponsor certifies that the original Mortgage has been delivered to a title insurance company for recordation after receipt of its policy of title insurance or
the related binder, commitment or preliminary report; and 
  
 (b)
in lieu of delivering the completed assignment in recordable form, deliver to the Indenture Trustee, the assignment in recordable form, otherwise complete except for recording information. 
  

 A-2 

 EXHIBIT B 
  
 [RESERVED] 
  

 B-1 

 EXHIBIT C 
  
 INDENTURE TRUSTEE’S ACKNOWLEDGEMENT OF RECEIPT 
  
 August [    ], 2004 
  

			
	 Lehman Brothers Inc.
	 	 Accredited Home Lenders, Inc.

	 745 Seventh Avenue
	 	 15090 Avenue of Science

	 New York, New York 10019
	 	 San Diego, California 92128

		
	 Countrywide Home Loans Servicing LP
	 	 Accredited Mortgage Loan REIT Trust

	 4500 Park Granada, Mail Stop CH-143,
	 	 15090 Avenue of Science

	 Calabasas, California 91302
	 	 San Diego, California 92128

  

	 	Re:	Sale and Servicing Agreement, dated as of August 1, 2004 among Accredited Home Lenders, Inc., as Sponsor and Master Servicer, Accredited Mortgage Loan REIT Trust, as seller,
Accredited Mortgage Loan Trust 2004-3, Countrywide Home Loans Servicing LP, as Backup Servicer, and Deutsche Bank National Trust Company, as Indenture Trustee 

  
 Ladies and Gentlemen: 
  
 In accordance with Section 2.06(b)(i) of the above-captioned Sale and Servicing Agreement, the undersigned, as Indenture Trustee, hereby acknowledges
receipt by it in good faith without notice of adverse claims, subject to the provisions of Sections 2.04 and 2.05 of the Sale and Servicing Agreement (as such provisions relate to the Mortgage Loan), of, with respect to each Mortgage Loan, a
Mortgage File containing the original Mortgage Note, except with respect to the list of exceptions attached hereto, and based on its examination and only as to the foregoing, the information set forth in items (i), (ii) (with respect to property
address only, excluding zip code), (iii) and (vi) of the definition of the “Mortgage Loan Schedule” accurately reflects information set forth in the Mortgage Note, and declares that it holds and will hold such documents and the other
documents delivered to it constituting the Indenture Trustee’s Mortgage Files, and that it holds or will hold all such assets and such other assets included in the definition of “Trust Estate” that are delivered to it for the
exclusive use and benefit of all present and future Noteholders. 
  
 The Indenture Trustee has made no independent examination of any such documents beyond the review specifically required in the above-referenced Sale and Servicing Agreement. 

 The Indenture Trustee makes no representations as to: (i) the validity, legality, recordability, sufficiency, perfection,
priority, enforceability or genuineness of any such documents or any of the Mortgage Loans identified on the Mortgage Loan Schedule, or (ii) the collectability, insurability, effectiveness or suitability of any such Mortgage Loan. 
  
 The Mortgage Loan Schedule is attached to this Receipt. 
  
 Capitalized words and phrases used herein shall have the respective meanings
assigned to them in Appendix I to the Indenture, dated as of August 1, 2004, by and between Accredited Mortgage Loan Trust 2004-3 and the Indenture Trustee. 
  

			
	DEUTSCHE BANK NATIONAL TRUST COMPANY,
	as Indenture Trustee
		
	By:	 	  

	Name:	 	 
	Title:	 	 

 EXHIBIT D 
  
 INITIAL CERTIFICATION OF INDENTURE TRUSTEE 
  
                     , 2004

  

			
	Lehman Brothers Inc.	 	Accredited Home Lenders, Inc.
	745 Seventh Avenue	 	15090 Avenue of Science
	New York, New York 10019	 	San Diego, California 92128
		
	 Countrywide Home Loans Servicing LP,
 as Backup
Servicer
 4500 Park Granada, Mail Stop CH-143,
 Calabasas,
California 91302
	 	 Accredited Mortgage Loan REIT Trust
 15090 Avenue of
Science
 San Diego, California 92128

  

	 	Re:	Sale and Servicing Agreement, dated as of August 1, 2004 among Accredited Home Lenders, Inc., as Sponsor and Master Servicer, Accredited Mortgage Loan REIT Trust, as seller,
Accredited Mortgage Loan Trust 2004-3, Countrywide Home Loans Servicing LP, as Backup Servicer, and Deutsche Bank National Trust Company, as Indenture Trustee 

  
 Ladies and Gentlemen: 
  
 In accordance with the provisions of Section 2.06(b)(ii) of the above-referenced Sale and Servicing Agreement, the undersigned, as Indenture Trustee,
hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan listed on the attachment hereto), it has reviewed the documents delivered to it pursuant to Section
2.05(a) of the Sale and Servicing Agreement and has determined that, except as noted on the attachment hereto, (i) all documents required to be delivered to it pursuant to Section 2.05(a)(i)-(iv) and (vi) of the above-referenced Sale and Servicing
Agreement are in its possession, (ii) such documents have been reviewed by it and appear regular on their face and have not been mutilated, damaged, torn or otherwise physically altered (handwritten additions, changes or corrections do not
constitute physical alteration if they reasonably appear to have been initialed by the Mortgagor) and relates to such Mortgage Loan and (iii) based on its examination and only as to the foregoing documents, the information set forth in the Mortgage
Loan Schedule as to the information in clauses (i), (ii) (with respect to property address only, excluding zip code), (iii) and (vi) of the definition of “Mortgage Loan Schedule” respecting such Mortgage Loan accurately reflects the
information set forth in Indenture Trustee’s Mortgage File. The Indenture Trustee has made no independent examination of such documents beyond the review specifically required in the above-referenced Sale and Servicing Agreement. The Indenture
Trustee makes no representations as to: (x) the validity, legality, recordability, sufficiency, perfection, priority, enforceability or genuineness of any such documents contained in each or any of the Mortgage Loans identified on the Mortgage Loan
Schedule, or (y) the collectability, insurability, effectiveness or suitability of any such Mortgage Loan. 
  

 D-1 

 Capitalized words and phrases used herein shall have the respective meanings assigned to them in the
above-captioned Sale and Servicing Agreement. 
  

			
	DEUTSCHE BANK NATIONAL TRUST COMPANY,
	as Indenture Trustee
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  

 D-2 

 EXHIBIT E 
  
 FINAL CERTIFICATION OF INDENTURE TRUSTEE 
  
                     , 2004

  

			
	Lehman Brothers Inc.	 	Accredited Home Lenders, Inc.
	745 Seventh Avenue	 	15090 Avenue of Science
	New York, New York 10019	 	San Diego, California 92128
		
	 Countrywide Home Loans Servicing LP,
 as Backup
Servicer
 4500 Park Granada, Mail Stop CH-143,
 Calabasas,
California 91302
	 	 Accredited Mortgage Loan REIT Trust
 15090 Avenue of
Science
 San Diego, California 92128

  

	 	Re:	Sale and Servicing Agreement, dated as of August 1, 2004 among Accredited Home Lenders, Inc., as Sponsor and Master Servicer, Accredited Mortgage Loan REIT Trust, as seller,
Accredited Mortgage Loan Trust 2004-3, Countrywide Home Loans Servicing LP, as Backup Servicer, and Deutsche Bank National Trust Company, as Indenture Trustee 

  
 Ladies and Gentlemen: 
  
 In accordance with the provisions of Section 2.06(b)(iii) of the above-referenced Sale and Servicing Agreement, the undersigned, as Indenture Trustee,
hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan listed on the attachment hereto), it has reviewed the documents delivered to it pursuant to Section
2.05(a) of the Sale and Servicing Agreement and has determined that (i) all documents required to be delivered to it pursuant to Section 2.05(a)(i)-(iv) and (vi) of the above referenced Sale and Servicing Agreement are in its possession, (ii) such
documents have been reviewed by it and appear regular on their face and have not been mutilated, damaged, torn or otherwise physically altered (handwritten additions, changes or corrections do not constitute physical alteration if they reasonably
appear to have been initialed by the Mortgagor) and relates to such Mortgage Loan and (iii) based on its examination and only as to the foregoing documents, the information set forth in items (i), (ii) (with respect to property address only,
excluding zip code), (iii) and (vi) of the definition of the Mortgage Loan Schedule respecting such Mortgage Loan that can be determined from the face of such documents accurately reflects the information set forth in the Indenture Trustee’s
Mortgage File. The Indenture Trustee has made no independent examination of such documents beyond the review specifically required in the above-referenced Sale and Servicing Agreement. The Indenture Trustee makes no 
  

 E-1 

 representations as to: (x) the validity, legality, recordability, sufficiency, perfection, priority, enforceability or
genuineness of any such documents contained in each or any of the Mortgage Loans identified on the Mortgage Loan Schedule, or (y) the collectability, insurability, effectiveness or suitability of any such Mortgage Loan. 
  
 Capitalized words and phrases used herein shall have the respective meanings
assigned to them in the above-captioned Sale and Servicing Agreement. 
  

			
	DEUTSCHE BANK NATIONAL TRUST COMPANY,
	as Indenture Trustee
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  

 E-2 

 EXHIBIT F 
  
 REQUEST FOR RELEASE OF DOCUMENTS 
  

	To:	Deutsche Bank National Trust Company 

	 	1761 East St. Andrew Place 

	 	Santa Ana, California 92705 

	 	Attn: Trust Administration - AC0403 

  

	 	Re:	Sale and Servicing Agreement, dated as of August 1, 2004 among Accredited Home Lenders, Inc., as Sponsor and Master Servicer, Accredited Mortgage Loan REIT Trust, as seller,
Accredited Mortgage Loan Trust 2004-3, Countrywide Home Loans Servicing LP, as Backup Servicer, and Deutsche Bank National Trust Company, as Indenture Trustee (“Custodian/Indenture Trustee”) 

  
 In connection with the administration of the Mortgage Loans held by you as
Indenture Trustee for the Issuer pursuant to the above-captioned Sale and Servicing Agreement, we request the release, and hereby acknowledge receipt, of the Indenture Trustee’s Mortgage File for the Mortgage Loan described below, for the
reason indicated. 
  
 Mortgage Loan Number: 
  
 Mortgagor Name, Address & Zip Code: 
  
 Reason for Requesting Documents (check one): 
  

									
	________	  	1.	 	Mortgage Paid in Full	 	 	 	 
					
	________	  	2.	 	Foreclosure	 	 	 	 
					
	________	  	3.	 	Substitution	 	 	 	 
					
	________	  	4.	 	Other Liquidation (Repurchases, etc.)	 	 	 	 
					
	________	  	5.	 	Nonliquidation Reason:	 	Reason:	 	  

  
 Address to which
Indenture Trustee should 
  

					
	Deliver the Mortgage File: 	 	

	 	 	

	 	 	

			
	 	 	By:	 	  

	 	 	 	 	                                (authorized signer)
	 	 	Issuer:	 	  

	 	 	Address:	 	  

	 	 	 	 	  

			
	 	 	Date:	 	  

 EXHIBIT G 
  
 ACCREDITED HOME LENDERS, INC. 
 OFFICER’S CERTIFICATE 
  
 I,
                    , certify that: 
  

	1.	I have reviewed this annual report on Form 10-K, and all reports on Form 8-K containing distribution or servicing reports filed in respect of periods included in the year covered by
this annual report, of Accredited Mortgage Loan Trust 2004-3; 

  

	2.	Based on my knowledge, the information in these reports, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such statements were made, not misleading as of the last day of the period covered by this annual report; 

  

	3.	Based on my knowledge, the distribution or servicing information required to be provided to the trustee by the servicer under the pooling and servicing, or similar, agreement is
included in these reports; 

  

	4.	Based on my knowledge and upon the annual compliance statement included in the report and required to be delivered to the trustee in accordance with the terms of the pooling and
servicing, or similar, agreement, and except as disclosed in the reports, the servicer has fulfilled its obligations under the servicing agreement; and 

  

	5.	The reports disclose all significant deficiencies relating to the servicer’s compliance with the minimum servicing standards based upon the report provided by an independent
public accountant, after conducting a review in compliance with the Uniform Single Attestation Program for Mortgage Bankers or similar procedure, as set forth in the pooling and servicing, or similar, agreement that is included in these reports.

  
 In giving the certifications above, I have reasonably relied on
information provided to me by the following unaffiliated parties:                     . 
  
 Date: 
  

	
	
 Name:

	Title:WaMu 2004-CB3 PSA

EXHIBIT 4.1

EXECUTION VERSION

 

 

WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.,

as Depositor and Master Servicer

and

CITIBANK, N.A.,

as Trustee

and

CHRISTIANA BANK & TRUST COMPANY,

as Delaware Trustee

POOLING AND SERVICING AGREEMENT

$306,799,794.36

Washington Mutual Mortgage Securities Corp.

WaMu Mortgage Pass-Through Certificates

Series 2004-CB3

Cut-Off Date: August 1, 2004

 

 

TABLE OF CONTENTS

 

	
 

	
 

	
PAGE

 

	
ARTICLE I

	
 

	
5

	
Section 1.01.

	
Definitions

	
5

	
 

	
Aggregate Certificate Principal
Balance

	
5

	
 

	
Appraised Value

	
5

	
 

	
Assignment of Proprietary Lease

	
5

	
 

	
Authenticating Agent

	
5

	
 

	
Authorized Denomination

	
5

	
 

	
Bankruptcy Loss

	
5

	
 

	
Beneficial Holder

	
6

	
 

	
Benefit Plan Opinion

	
6

	
 

	
Book-Entry Certificates

	
6

	
 

	
Business Day

	
6

	
 

	
Buydown Agreement

	
6

	
 

	
Buydown Fund

	
6

	
 

	
Buydown Fund Account

	
6

	
 

	
Buydown Loan

	
7

	
 

	
Carry-Forward Subsequent Recoveries
Amount

	
7

	
 

	
Certificate

	
7

	
 

	
Certificate Account

	
7

	
 

	
Certificate Group

	
7

	
 

	
Certificateholder or Holder

	
7

	
 

	
Certificate Interest Rate

	
7

	
 

	
Certificate of Trust

	
8

	
 

	
Certificate Principal Balance

	
8

	
 

	
Certificate Register and Certificate
Registrar

	
8

	
 

	
Class

	
 

	
 

	
Class A Certificates

	
8

	
 

	
Class B Certificates

	
8

	
 

	
Class B Percentage

	
8

	
 

	
Class B-1 Certificates

	
8

	
 

	
Class B-2 Certificates

	
8

	
 

	
Class B-3 Certificates

	
8

	
 

	
Class B-4 Certificates

	
8

	
 

	
Class B-5 Certificates

	
9

	
 

	
Class B-6 Certificates

	
9

	
 

	
Class C-X Certificates

	
9

	
 

	
Class C-X Notional Amount

	
9

	
 

	
Class C-X-M Regular Interest

	
9

	
 

	
Class C-Y Principal Reduction
Amounts

	
9

	
 

	
Class C-Y Regular Interests

	
9

	
 

	
Class C-Y-1 Principal Distribution
Amount

	
9

	
 

	
Class C-Y-1 Regular Interest

	
9

 

 

i

 

TABLE OF CONTENTS

(continued)

 

	
 

	
 

	
PAGE

 

	
 

	
Class C-Y-2 Principal Distribution
Amount

	
9

	
 

	
Class C-Y-2 Regular Interest

	
9

	
 

	
Class C-Y-3 Principal Distribution
Amount

	
10

	
 

	
Class C-Y-3 Regular Interest

	
10

	
 

	
Class C-Z Principal Reduction
Amounts

	
10

	
 

	
Class C-Z Regular Interests

	
10

	
 

	
Class C-Z-1 Principal Distribution
Amount

	
10

	
 

	
Class C-Z-1 Regular Interest

	
10

	
 

	
Class C-Z-2 Principal Distribution
Amount

	
10

	
 

	
Class C-Z-2 Regular Interest

	
10

	
 

	
Class C-Z-3 Principal Distribution
Amount

	
10

	
 

	
Class C-Z-3 Regular Interest

	
11

	
 

	
Class I-A Certificates

	
11

	
 

	
Class I-P Certificates

	
11

	
 

	
Class I-P Fraction

	
11

	
 

	
Class I-P Mortgage Loan

	
11

	
 

	
Class I-P-M Regular Interest

	
11

	
 

	
Class II-A Certificates

	
11

	
 

	
Class III-A Certificates

	
11

	
 

	
Class III-P Certificates

	
11

	
 

	
Class III-P Fraction

	
11

	
 

	
Class III-P Mortgage Loan

	
11

	
 

	
Class III-P-M Regular Interest

	
11

	
 

	
Class IV-A Certificates

	
11

	
 

	
Class Notional Amount

	
11

	
 

	
Class P Certificates

	
11

	
 

	
Class P Fraction

	
12

	
 

	
Class P Mortgage Loan

	
12

	
 

	
Class P-M Regular Interests

	
12

	
 

	
Class Principal Balance

	
12

	
 

	
Class R Certificates

	
13

	
 

	
Class R Residual Interests

	
13

	
 

	
Class R-1 Residual Interest

	
13

	
 

	
Class R-2 Residual Interest

	
13

	
 

	
Class X Certificates

	
13

	
 

	
Class X-M Regular Interest

	
13

	
 

	
Clean-Up Call Percentage

	
13

 

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
 

	
 

	
PAGE

 

	
 

	
Clearing Agency

	
13

	
 

	
Closing Date

	
13

	
 

	
Code

	
13

	
 

	
Company

	
13

	
 

	
Compensating Interest

	
13

	
 

	
Cooperative

	
14

	
 

	
Cooperative Apartment

	
14

	
 

	
Cooperative Lease

	
14

	
 

	
Cooperative Loans

	
14

	
 

	
Cooperative Stock

	
14

	
 

	
Cooperative Stock Certificate

	
14

	
 

	
Corporate Trust Office

	
14

	
 

	
Corporation

	
14

	
 

	
Curtailment

	
14

	
 

	
Curtailment Shortfall

	
14

	
 

	
Custodial Account for P&I

	
15

	
 

	
Custodial Account for Reserves

	
15

	
 

	
Custodial Agreement

	
15

	
 

	
Custodian

	
15

	
 

	
Cut-Off Date

	
15

	
 

	
Definitive Certificates

	
16

	
 

	
Delaware Trustee

	
16

	
 

	
Depositary Agreement

	
16

	
 

	
Destroyed Mortgage Note

	
16

	
 

	
Determination Date

	
16

	
 

	
Disqualified Organization

	
16

	
 

	
Distribution Date

	
16

	
 

	
DTC

	
16

	
 

	
DTC Participant

	
16

	
 

	
Due Date

	
16

	
 

	
Eligible Institution

	
16

	
 

	
Eligible Investments

	
17

	
 

	
ERISA

	
18

	
 

	
ERISA Restricted Certificate

	
18

	
 

	
Event of Default

	
18

	
 

	
Excess Liquidation Proceeds

	
18

	
 

	
Excess Subsequent Recoveries

	
18

	
 

	
FDIC

	
18

	
 

	
FHA

	
18

	
 

	
Fannie Mae

	
19

	
 

	
Final Maturity Date

	
19

	
 

	
Fitch

	
19

	
 

	
Freddie Mac

	
19

 

 

iii

 

 

TABLE OF CONTENTS

(continued)

 

	
 

	
 

	
PAGE

 

	
 

	
Group I Certificates

	
19

	
 

	
Group I Loans

	
19

	
 

	
Group I Premium Rate Mortgage Loans

	
19

	
 

	
Group I Senior Liquidation Amount

	
19

	
 

	
Group I Senior Percentage

	
19

	
 

	
Group I Senior Prepayment Percentage, Group II
Senior Prepayment Percentage, Group III Senior Prepayment Percentage or Group IV Senior Prepayment Percentage

	
19

	
 

	
Group I Senior Principal Distribution
Amount

	
22

	
 

	
Group I Subordinate Percentage

	
22

	
 

	
Group I Subordinate Prepayment
Percentage

	
22

	
 

	
Group II Certificates

	
22

	
 

	
Group II Loans

	
22

	
 

	
Group II Premium Rate Mortgage Loans

	
22

	
 

	
Group II Senior Liquidation Amount

	
22

	
 

	
Group II Senior Percentage

	
22

	
 

	
Group II Senior Prepayment
Percentage

	
22

	
 

	
Group II Senior Principal Distribution
Amount

	
23

	
 

	
Group II Subordinate Balance

	
23

	
 

	
Group II Subordinate Percentage

	
23

	
 

	
Group II Subordinate Prepayment
Percentage

	
23

	
 

	
Group III Certificates

	
23

	
 

	
Group III Loans

	
23

	
 

	
Group III Premium Rate Mortgage
Loans

	
23

	
 

	
Group III Senior Liquidation Amount

	
23

	
 

	
Group III Senior Percentage

	
23

	
 

	
Group III Senior Prepayment
Percentage

	
23

	
 

	
Group III Senior Principal Distribution
Amount

	
23

	
 

	
Group III Subordinate Balance

	
24

	
 

	
Group III Subordinate Percentage

	
24

	
 

	
Group III Subordinate Prepayment
Percentage

	
24

	
 

	
Group IV Certificates

	
24

	
 

	
Group IV Loans

	
24

	
 

	
Group IV Premium Rate Mortgage Loans

	
24

	
 

	
Group IV Senior Liquidation Amount

	
24

	
 

	
Group IV Senior Percentage

	
24

	
 

	
Group IV Senior Prepayment
Percentage

	
24

	
 

	
Group IV Senior Principal Distribution
Amount

	
24

	
 

	
Group IV Subordinate Percentage

	
24

	
 

	
Group IV Subordinate Prepayment
Percentage

	
25

	
 

	
Groups I and Group IV Subordinate
Balance

	
25

	
 

	
Indirect DTC Participants

	
25

	
 

	
Initial Custodial Agreement

	
25

 

 

iv

 

 

 

TABLE OF CONTENTS

(continued)

 

	
 

	
 

	
PAGE

 

	
 

	
Initial Custodian

	
25

	
 

	
Insurance Proceeds

	
25

	
 

	
Interest Distribution Amount

	
25

	
 

	
Interest Transfer Amount

	
25

	
 

	
Investment Account

	
25

	
 

	
Investment Depository

	
26

	
 

	
Junior Subordinate Certificates

	
26

	
 

	
Last Scheduled Distribution Date

	
26

	
 

	
Lender

	
26

	
 

	
Liquidated Mortgage Loan

	
26

	
 

	
Liquidation Principal

	
26

	
 

	
Liquidation Proceeds

	
26

	
 

	
Loan Group

	
26

	
 

	
Loan Group I

	
26

	
 

	
Loan Group II

	
26

	
 

	
Loan Group III

	
26

	
 

	
Loan Group IV

	
26

	
 

	
Loan-to-Value Ratio

	
26

	
 

	
Lowest Class B Owner

	
27

	
 

	
Master Servicer

	
27

	
 

	
Master Servicer Business Day

	
27

	
 

	
Master Servicing Fee

	
27

	
 

	
MERS

	
27

	
 

	
MERS Loan

	
27

	
 

	
MERS® System

	
27

	
 

	
MIN

	
27

	
 

	
MOM Loan

	
27

	
 

	
Monthly P&I Advance

	
27

	
 

	
Monthly Payment

	
27

	
 

	
Moody’s

	
27

	
 

	
Mortgage

	
27

	
 

	
Mortgage File

	
28

	
 

	
Mortgage Interest Rate

	
30

	
 

	
Mortgage Loan Schedule

	
30

	
 

	
Mortgage Loans

	
31

	
 

	
Mortgage Note

	
31

	
 

	
Mortgage Pool

	
31

	
 

	
Mortgage Pool Assets

	
31

	
 

	
Mortgaged Property

	
31

	
 

	
Mortgagor

	
32

	
 

	
Nonrecoverable Advance

	
32

	
 

	
Non-U.S. Person

	
32

	
 

	
Notice Addresses

	
32

 

 

v

 

 

 

TABLE OF CONTENTS

(continued)

 

	
 

	
 

	
PAGE

 

	
 

	
OTS

	
32

	
 

	
Officer’s Certificate

	
32

	
 

	
Opinion of Counsel

	
32

	
 

	
Original Trust Agreement

	
32

	
 

	
Original Value

	
32

	
 

	
Overcollateralized Group

	
33

	
 

	
Ownership Interest

	
33

	
 

	
Pass-Through Entity

	
33

	
 

	
Pass-Through Rate

	
33

	
 

	
Paying Agent

	
33

	
 

	
Payoff

	
33

	
 

	
Payoff Earnings

	
33

	
 

	
Payoff Interest

	
33

	
 

	
Payoff Period

	
34

	
 

	
Percentage Interest

	
34

	
 

	
Permitted Transferee

	
34

	
 

	
Person

	
35

	
 

	
Prepaid Monthly Payment

	
35

	
 

	
Primary Insurance Policy

	
35

	
 

	
Principal Balance

	
35

	
 

	
Principal Payment

	
36

	
 

	
Principal Payment Amount

	
36

	
 

	
Principal Prepayment

	
36

	
 

	
Principal Prepayment Amount

	
36

	
 

	
Principal Transfer Amount

	
36

	
 

	
Prior Period

	
36

	
 

	
Prospectus

	
36

	
 

	
Purchase Obligation

	
36

	
 

	
Purchase Price

	
36

	
 

	
Qualified Insurer

	
37

	
 

	
Rating Agency

	
37

	
 

	
Ratings

	
37

	
 

	
Realized Loss

	
37

	
 

	
Recognition Agreement

	
39

	
 

	
Record Date

	
39

	
 

	
Regular Interests

	
39

	
 

	
Relief Act Shortfall

	
39

	
 

	
REMIC

	
40

	
 

	
REMIC Provisions

	
40

	
 

	
REMIC I

	
40

	
 

	
REMIC I Assets

	
40

	
 

	
REMIC I Available Distribution
Amount

	
40

	
 

	
REMIC I Distribution Amount

	
41

 

 

vi

 

 

 

TABLE OF CONTENTS

(continued)

 

	
 

	
 

	
PAGE

 

	
 

	
REMIC I Regular Interests

	
43

	
 

	
REMIC II

	
44

	
 

	
REMIC II Assets

	
44

	
 

	
REMIC II Available Distribution Amount

	
44

	
 

	
REMIC II Distribution Amount

	
44

	
 

	
REMIC II Regular Interests

	
50

	
 

	
Residual Certificates

	
50

	
 

	
Residual Distribution Amount

	
50

	
 

	
Responsible Officer

	
50

	
 

	
S&P

	
51

	
 

	
Secretary of State

	
51

	
 

	
Securities Act

	
51

	
 

	
Security Agreement

	
51

	
 

	
Selling and Servicing Contract

	
51

	
 

	
Senior Certificates

	
51

	
 

	
Senior Subordinate Certificates

	
51

	
 

	
Servicer

	
51

	
 

	
Servicing Fee

	
51

	
 

	
Servicing Officer

	
51

	
 

	
Special Primary Insurance Policy

	
52

	
 

	
Special Primary Insurance Premium

	
52

	
 

	
Statutory Trust Statute

	
52

	
 

	
Stripped Interest Rate

	
52

	
 

	
Subordinate Certificates

	
52

	
 

	
Subordinate Component Balance

	
52

	
 

	
Subordinate Liquidation Amount

	
52

	
 

	
Subordinate Percentage

	
52

	
 

	
Subordinate Principal Distribution
Amount

	
53

	
 

	
Subordinate Principal Prepayments Distribution
Amount

	
53

	
 

	
Subordination Level

	
54

	
 

	
Subsequent Recoveries

	
54

	
 

	
Substitute Mortgage Loan

	
54

	
 

	
Tax Matters Person

	
54

	
 

	
Termination Date

	
54

	
 

	
Termination Payment

	
55

	
 

	
Total Transfer Amount

	
55

	
 

	
Transfer

	
55

	
 

	
Transferee

	
55

	
 

	
Transferee Affidavit and Agreement

	
55

	
 

	
Trust

	
55

	
 

	
Trustee

	
55

	
 

	
Uncollected Interest

	
55

 

 

vii

 

 

 

TABLE OF CONTENTS

(continued)

 

	
 

	
 

	
PAGE

 

	
 

	
Uncompensated Interest Shortfall

	
55

	
 

	
Undercollateralized Group

	
56

	
 

	
Underwriter

	
56

	
 

	
Underwriting Standards

	
56

	
 

	
Uninsured Cause

	
56

	
 

	
U.S. Person

	
56

	
 

	
VA

	
57

	
 

	
Withdrawal Date

	
57

	
ARTICLE II

	
Creation of the Trust; Conveyance of the Mortgage Pool Assets, REMIC I
Regular Interests and REMIC II Regular Interests; REMIC Election and Designations;
Original Issuance of Certificates

	
57

	
Section 2.01.

	
Creation of the Trust

	
57

	
Section 2.02.

	
Restrictions on Activities of the
Trust

	
58

	
Section 2.03.

	
Separateness Requirements

	
59

	
Section 2.04.

	
Conveyance of Mortgage Pool Assets; Security
Interest

	
60

	
Section 2.05.

	
Delivery of Mortgage Files

	
61

	
Section 2.06.

	
REMIC Election for REMIC I

	
63

	
Section 2.07.

	
Acceptance by Trustee

	
64

	
Section 2.08.

	
Representations and Warranties of the Company
Concerning the Mortgage Loans

	
66

	
Section 2.09.

	
Acknowledgment of Transfer of Mortgage Pool
Assets

	
71

	
Section 2.10.

	
Conveyance of REMIC II Assets; Security
Interest

	
71

	
Section 2.11.

	
REMIC Election for REMIC II

	
72

	
Section 2.12.

	
Acknowledgement of Transfer of REMIC II Assets;
Authentication of Certificates

	
73

	
Section 2.13.

	
Legal Title

	
73

	
Section 2.14.

	
Compliance with ERISA Requirements

	
73

	
Section 2.15.

	
Additional Representation of the Company
Concerning the Mortgage Loans

	
74

	
ARTICLE III

	
Administration and Servicing of Mortgage Loans

	
74

	
Section 3.01.

	
The Company to Act as Master
Servicer

	
74

	
Section 3.02.

	
Custodial Accounts and Buydown Fund
Accounts

	
77

	
Section 3.03.

	
The Investment Account; Eligible
Investments

	
78

	
Section 3.04.

	
The Certificate Account

	
79

 

 

viii

 

 

 

TABLE OF CONTENTS

(continued)

 

	
 

	
 

	
PAGE

 

	
Section 3.05.

	
Permitted Withdrawals from the Certificate
Account, the Investment Account and Custodial Accounts for P&I and of Buydown Funds from the Buydown Fund Accounts

	
80

	
Section 3.06.

	
Maintenance of Primary Insurance Policies;
Collections Thereunder

	
82

	
Section 3.07.

	
Maintenance of Hazard Insurance

	
82

	
Section 3.08.

	
Enforcement of Due-on-Sale Clauses; Assumption
Agreements

	
83

	
Section 3.09.

	
Realization Upon Defaulted Mortgage
Loans

	
83

	
Section 3.10.

	
Trustee to Cooperate; Release of Mortgage
Files

	
85

	
Section 3.11.

	
Compensation to the Master Servicer and the
Servicers

	
86

	
Section 3.12.

	
Reports to the Trustee; Certificate Account
Statement

	
87

	
Section 3.13.

	
Annual Statement as to Compliance

	
87

	
Section 3.14.

	
Access to Certain Documentation and Information
Regarding the Mortgage Loans

	
87

	
Section 3.15.

	
Annual Independent Public Accountants’
Servicing Report

	
87

	
Section 3.16.

	
[Reserved.]

	
88

	
Section 3.17.

	
[Reserved.]

	
88

	
Section 3.18.

	
[Reserved.]

	
88

	
Section 3.19.

	
[Reserved.]

	
88

	
Section 3.20.

	
Assumption or Termination of Selling and
Servicing Contracts by Trustee

	
88

	
ARTICLE IV

	
Payments to Certificateholders; Payment of Expenses

	
88

	
Section 4.01.

	
Distributions to Holders of REMIC I Regular
Interests and Class R-1 Residual Interest

	
88

	
Section 4.02.

	
Advances by the Master Servicer; Distribution
Reports to the Trustee

	
89

	
Section 4.03.

	
Nonrecoverable Advances

	
90

	
Section 4.04.

	
Distributions to Certificateholders; Payment of
Special Primary Insurance Premiums

	
91

	
Section 4.05.

	
Statements to Certificateholders

	
92

	
ARTICLE V

	
The Certificates

	
92

	
Section 5.01.

	
The Certificates

	
92

 

 

ix

 

 

 

TABLE OF CONTENTS

(continued)

 

	
 

	
 

	
PAGE

 

	
Section 5.02.

	
Certificates Issuable in Classes; Distributions
of Principal and Interest; Authorized Denominations

	
99

	
Section 5.03.

	
Registration of Transfer and Exchange of
Certificates

	
99

	
Section 5.04.

	
Mutilated, Destroyed, Lost or Stolen
Certificates

	
100

	
Section 5.05.

	
Persons Deemed Owners

	
100

	
Section 5.06.

	
Temporary Certificates

	
100

	
Section 5.07.

	
Book-Entry for Book-Entry
Certificates

	
101

	
Section 5.08.

	
Notices to Clearing Agency

	
102

	
Section 5.09.

	
Definitive Certificates

	
102

	
Section 5.10.

	
Office for Transfer of Certificates

	
102

	
Section 5.11.

	
Nature of Certificates

	
103

	
ARTICLE VI

	
The Company and the Master Servicer

	
103

	
Section 6.01.

	
Liability of the Company and the Master
Servicer

	
103

	
Section 6.02.

	
Merger or Consolidation of the Company, or the
Master Servicer

	
103

	
Section 6.03.

	
Limitation on Liability of the Company, the
Master Servicer and Others

	
103

	
Section 6.04.

	
The Company and the Master Servicer not to
Resign

	
104

	
Section 6.05.

	
Trustee Access.

	
104

	
ARTICLE VII

	
Default

	
105

	
Section 7.01.

	
Events of Default

	
105

	
Section 7.02.

	
Trustee to Act; Appointment of
Successor

	
107

	
Section 7.03.

	
Notification to Certificateholders

	
108

	
ARTICLE VIII

	
Concerning the Trustees

	
109

	
Section 8.01.

	
Duties of Trustees

	
109

	
Section 8.02.

	
Certain Matters Affecting the
Trustees

	
110

	
Section 8.03.

	
Trustees Not Liable for Certificates or
Mortgage Loans

	
111

	
Section 8.04.

	
Trustees May Own Certificates

	
112

	
Section 8.05.

	
The Master Servicer to Pay Trustees’ Fees
and Expenses

	
112

	
Section 8.06.

	
Eligibility Requirements for
Trustees

	
112

	
Section 8.07.

	
Resignation and Removal of Trustees

	
112

 

 

x

 

 

 

TABLE OF CONTENTS

(continued)

 

	
 

	
 

	
PAGE

 

	
Section 8.08.

	
Successor Trustee

	
113

	
Section 8.09.

	
Merger or Consolidation of Trustee

	
114

	
Section 8.10.

	
Appointment of Co-Trustee or Separate
Trustee

	
114

	
Section 8.11.

	
Authenticating Agents

	
115

	
Section 8.12.

	
Paying Agents

	
116

	
Section 8.13.

	
Duties of Delaware
Trustee

	
116

	
Section 8.14.

	
Amendment to Certificate of Trust

	
117

	
Section 8.15.

	
Limitation of Liability

	
117

	
ARTICLE IX

	
Termination

	
117

	
Section 9.01.

	
Termination Upon Purchase by the Master
Servicer or Liquidation of All Mortgage Loans

	
117

	
Section 9.02.

	
Additional Termination Requirements

	
119

	
Section 9.03.

	
Trust Irrevocable

	
120

	
ARTICLE X

	
Miscellaneous Provisions

	
120

	
Section 10.01.

	
Amendment

	
120

	
Section 10.02.

	
Recordation of Agreement

	
121

	
Section 10.03.

	
Limitation on Rights of
Certificateholders

	
122

	
Section 10.04.

	
Access to List of Certificateholders

	
122

	
Section 10.05.

	
Governing Law

	
123

	
Section 10.06.

	
Notices

	
123

	
Section 10.07.

	
Severability of Provisions

	
123

	
Section 10.08.

	
Counterpart Signatures

	
123

	
Section 10.09.

	
Benefits of Agreement

	
123

	
Section 10.10.

	
Notices and Copies to Rating
Agencies

	
124

 

xi

TABLE OF CONTENTS

(continued)

 

 

Appendix 1   Definition of “Class C-Y Principal
Reduction Amounts”

Exhibit A   Form of Certificates (other than Class R
Certificates)

Exhibit B   Form of Class R Certificates

Exhibit C   Anti-Predatory Lending Categorization

Exhibit D   Mortgage Loan Schedule

Exhibit E   Selling And Servicing Contract

Exhibit F   Form of Transferor Certificate For Junior
Subordinate Certificates

Exhibit G   Form of Transferee’s Agreement For Junior
Subordinate Certificates

Exhibit H   Form of Additional Matter Incorporated Into The
Certificates

Exhibit I   Transferor Certificate

Exhibit J   Transferee Affidavit And Agreement

Exhibit K   [Reserved]

Exhibit L   Form of Investment Letter

Exhibit M   Form of Trustee’s Certification Pursuant to
Section 2.07

Exhibit N   Officer’s Certificate With Respect to ERISA
Matters Pursuant to Section 5.01(d)

Exhibit O   Officer’s Certificate With Respect to ERISA
Matters Pursuant to Section 5.01(g)

 

xii

 

This Pooling and Servicing Agreement, dated and effective as of August
1, 2004 (this “Agreement”), is executed by and among Washington Mutual Mortgage Securities Corp., as depositor
and Master Servicer (the “Company”), Citibank, N.A., a national banking association with a corporate trust
office at 111 Wall Street, 14th Floor, Zone 3, New York, New York 10005, as Trustee (the “Trustee”), and
Christiana Bank & Trust Company, as Delaware Trustee (the “Delaware Trustee”).  Capitalized terms used
in this Agreement and not otherwise defined have the meanings ascribed to such terms in Article I hereof.

PRELIMINARY STATEMENT

The Company at the Closing Date is the owner of the Mortgage Loans and
the other property being conveyed by it to the Trust. On the Closing Date, the Company will acquire the REMIC I Regular Interests
and the Class R-1 Residual Interest from the Trust as consideration for its transfer to the Trust of the Mortgage Loans and certain
other assets and will be the owner of the REMIC I Regular Interests and the Class R-1 Residual Interest.  Thereafter on the
Closing Date, the Company will acquire the Certificates (other than the Class R Certificates) and the Class R-2 Residual Interest
from the Trust as consideration for its transfer to the Trust of the REMIC I Regular Interests and will be the owner of the
Certificates.  The Company has duly authorized the execution and delivery of this Agreement to provide for (i) the conveyance
to the Trust of the Mortgage Loans and certain other assets, (ii) the issuance to the Company of the REMIC I Regular Interests and
the Class R-1 Residual Interest representing in the aggregate the entire beneficial interest in REMIC I, (iii) the conveyance to
the Trust of the REMIC I Regular Interests and (iv) the issuance to the Company of the Certificates, such Certificates (other than
the portion of the Class R Certificates representing ownership of the Class R-1 Residual Interest) representing in the aggregate
the entire beneficial interest in REMIC II. The Company is entering into this Agreement, and the Trustee and the Delaware Trustee
are each accepting the trust created hereby, for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged.

The Certificates issued hereunder, other
than the Junior Subordinate Certificates, have been offered for sale pursuant to a Prospectus, dated February 10, 2004, and a
Prospectus Supplement, dated August 20, 2004, of the Company (together, the “Prospectus”). The Junior
Subordinate Certificates have been offered for sale pursuant to a Private Placement Memorandum, dated August
24, 2004.  The Trust created hereunder is intended to be the “Trust” described in the
Prospectus and the Private Placement Memorandum and the Certificates are intended to be the “Certificates” described
therein. The following tables set forth the designation, type of interest, Certificate Interest Rate, initial Class Principal
Balance and Final Maturity Date for the REMIC I Regular Interests, the REMIC II Regular Interests, the Class R Residual Interests
and the Certificates:

 

1

  

	

REMIC I Interests

	
 

	

Class Designation for
each REMIC I Regular Interest and the Class R-1 Residual Interest

	
 

	
Type of Interest

	
 

	
Certificate Interest Rate (1)

	
 

	
Initial Class Principal Balance

	
 

	
Final Maturity Date*

	
Class C-Y-1

	
 

	

Regular

	
 

	
6.000%

	
 

	

 $ 71,426.14

	
 

	

October
2034

	
Class C-Y-2

	
 

	

Regular

	
 

	
6.500%

	
 

	

  57,076.87

	
 

	

October
2034

	
Class C-Y-3

	
 

	

Regular

	
 

	
5.500%

	
 

	

  23,145.74

	
 

	

October
2019

	
Class C-Z-1

	
 

	

Regular

	
 

	
6.000%

	
 

	

 142,780,853.72

	
 

	

October
2034

	
Class C-Z-2

	
 

	

Regular

	
 

	
6.500%

	
 

	

 115,570,281.47

	
 

	

October
2034

	
Class C-Z-3

	
 

	

Regular

	
 

	
5.500%

	
 

	

 46,268,328.42

	
 

	

October
2019

	
Class C-X-M

	
 

	

Regular

	
 

	
6.500%(2)

	
 

	

-----

	
 

	

October
2034

	
Class I-P-M

	
 

	

Regular

	
 

	
(3)

	
 

	

 1,338,698.65

	
 

	

October
2034

	
Class III-P-M

	
 

	

Regular

	
 

	
(3)

	
 

	

 689,884.07

	
 

	

October
2019

	
Class R-1†

	
 

	

Residual

	
 

	
5.500%

	
 

	

100.00

	
 

	

October
2034

	
 

	
 

	

 

	
 

	
 

	
 

	

 

	
 

	

 

	

*             The Distribution Date in the specified month,
which is the month following the month the latest maturing Mortgage Loan in the related Loan Group (or Loan Groups, as applicable)
matures. For federal income tax purposes, for each Class of REMIC I Regular and Residual Interests, the “latest possible
maturity date” shall be the Final Maturity Date.

	
 

	

†              The Class R-1 Residual Interest is
entitled to receive the applicable Residual Distribution Amount and any Excess Liquidation Proceeds.

	
 

	

(1)           Interest distributed to the REMIC I Regular Interests (other
than the Class P-M Regular Interests, which shall not be entitled to receive any distributions of interest) and the Class R-1
Residual Interest on each Distribution Date will have accrued at the applicable per annum Certificate Interest Rate on the
applicable Class Principal Balance or Class Notional Amount outstanding immediately before such Distribution Date.

	
 

	

(2)
          The Class C-X-M Regular Interest shall accrue interest on the Class C-X
Notional Amount.  The Class C-X-M Regular Interest shall not be entitled to receive any distributions of principal.

	
 

	

(3)
          The Class I-P-M Regular Interest and Class III-P-M Regular Interest shall
not be entitled to receive any distributions of interest.

	
 

										

 

As provided herein, with respect to REMIC I, the Company will cause an
election to be made on behalf of REMIC I to be treated for federal income tax purposes as a REMIC. The REMIC I Regular Interests
will be designated regular interests in REMIC I and the Class R-1 Residual Interest will be designated the sole class of residual
interest in REMIC I, for purposes of the REMIC Provisions.

 

2

 

REMIC II
Interests

	
 

	

 Class Designation for
each Class of Certificates and the Class R-2
Residual Interest

	
 

	
Type of Interest

	
 

	
Certificate Interest Rate (1)

	
 

	
Initial Class Principal Balance

	
 

	
Final Maturity Date*

	
 

	
Class I-A

	

 

	

Regular

	
 

	
6.000%

	
 

	
$  93,496,454.00

	
 

	

October
2034

	
 

	
Class II-A

	
 

	

Regular

	
 

	
6.500%

	
 

	
108,400,648.00

	
 

	

October
2034

	
 

	
Class III-A

	

 

	

Regular

	
 

	
5.500%

	
 

	
43,355,133.00

	
 

	

October
2034

	
 

	
Class IV-A

	

 

	

Regular

	
 

	
6.000%

	
 

	
40,343,889.00

	
 

	

October
2034

	
 

	
Class C-X

	
 

	

Regular

	
 

	
6.500%(2)

	
 

	

-----

	
 

	

October
2034

	
 

	
Class I-P

	

 

	

Regular

	
 

	
(3)

	
 

	
1,338,698.00

	
 

	

October
2034

	
 

	
Class III-P

	
 

	

Regular

	
 

	
(3)

	
 

	
689,884.00

	
 

	

October
2034

	
 

	
Class B-1

	
 

	

Regular

	
 

	
Variable(4)

	
 

	
8,130,000.00

	
 

	

October
2034

	
 

	
Class B-2

	
 

	

Regular

	
 

	
Variable(4)

	
 

	
3,681,000.00

	
 

	

October
2034

	
 

	
Class B-3

	
 

	

Regular

	
 

	
Variable(4)

	
 

	
2,147,000.00

	
 

	

October
2034

	
 

	
Class B-4

	
 

	

Regular

	
 

	
Variable(4)

	
 

	
2,147,000.00

	
 

	

October
2034

	
 

	
Class B-5

	
 

	

Regular

	
 

	
Variable(4)

	
 

	
1,840,000.00

	
 

	

October
2034

	
 

	
Class B-6

	
 

	

Regular

	
 

	
Variable(4)

	
 

	
1,229,988.36

	
 

	

October
2034

	
 

	
Class R-2 (5)

	
 

	

Residual

	
 

	

-----

	
 

	

-----

	
 

	

October
2034

	
 

	
 

	
 

	

 

	
 

	
 

	
 

	

 

	
 

	

 

	

*             The Distribution Date in the specified month,
which is the month following the month the latest maturing Mortgage Loan in the related Loan Group (or Loan Groups, as applicable)
matures. For federal income tax purposes, for each Class of REMIC II Regular and Residual Interests, the “latest possible
maturity date” shall be the Final Maturity Date.

	
 

	

(1)           Interest distributed on each Distribution Date to the
Certificates (other than the Class I-P and Class III-P Certificates, which shall not be entitled to receive any distributions of
interest) will have accrued at the applicable per annum Certificate Interest Rate on the applicable Class Principal Balance or
Class Notional Amount outstanding immediately before such Distribution Date.

	
 

	

(2)           The Class C-X Certificates shall accrue interest on the
Class C-X Notional Amount.  The Class C-X Certificates shall not be entitled to receive any distributions of
principal.

	
 

	

(3)           The Class I-P and Class III-P
Certificates shall not be entitled to receive any distributions of interest.

	
 

	

(4)           The Certificate Interest Rate for each
Class of the Class B Certificates shall equal, on any Distribution Date, the weighted average of the Certificate Interest Rates for
the Class C-Y-1, Class C-Y-2 and C-Y-3 Regular Interests.

	
 

	

(5)           The Class R‐2 Residual Interest shall be entitled to
receive the applicable Residual Distribution Amount.  The Class R‐2 Residual Interest shall not be entitled to receive
any distributions of interest or principal.

	
 

											

 

3

 

As provided herein, with respect to REMIC II, the Company will cause
an election to be made on behalf of REMIC II to be treated for federal income tax purposes as a REMIC. The Certificates (other than
the Class R Certificates) will be designated regular interests in REMIC II, and the Class R-2 Residual Interest will be designated
the sole class of residual interest in REMIC II, for purposes of the REMIC Provisions.  As of the Cut-Off Date, the Mortgage
Loans have an aggregate Principal Balance of $306,799,795.08 As of the Closing Date, the Certificates have an Aggregate Certificate
Principal Balance of $306,799,794.36.

In addition, the Trust will issue the Class R Certificates, which will
represent ownership of the Class R-1 and Class R-2 Residual Interests.

W I T N E S S E T H :

WHEREAS, the Company is a corporation duly organized and existing
under and by virtue of the laws of the State of Delaware and has full corporate power and authority to enter into this Agreement
and to undertake the obligations undertaken by it herein;

WHEREAS, the Trustee is a national banking association duly organized
and existing under the laws of the United States of America and has full power and authority to enter into this
Agreement;

WHEREAS, the Delaware Trustee is a banking corporation duly organized
and existing under the laws of the State of Delaware and has full power and authority to enter into this Agreement;

WHEREAS, prior to the execution and delivery hereof, the Company and
the Delaware Trustee have entered into the Original Trust Agreement, and the Delaware Trustee has filed the Certificate of
Trust;

WHEREAS, it is the intention of the Company, the Trustee and the
Delaware Trustee that the Trust created by this Agreement constitute a statutory trust under the Statutory Trust Statute, that this
Agreement constitute the governing instrument of the Trust, and that this Agreement amend and restate the Original Trust
Agreement;

WHEREAS, the Company is the owner of the Mortgage Loans identified in
the Mortgage Loan Schedule hereto having unpaid Principal Balances on the Cut-Off Date as stated therein; and

WHEREAS, the Company has been duly authorized to create the Trust to
(i) hold the Mortgage Loans and certain other property, (ii) issue the REMIC I Regular Interests and the Class R-1 Residual
Interest, (iii) hold the REMIC I Regular Interests and (iv) issue the Certificates.

 

4

 

 

NOW, THEREFORE, in order to declare the terms and conditions upon
which the REMIC I Regular Interests, the Class R Residual Interests and the Certificates are to be issued, and in consideration of
the premises and of the purchase and acceptance of the Certificates by the Holders thereof, the Company covenants and agrees with
the Trustee and the Delaware Trustee, for the equal and proportionate benefit of the respective Holders from time to time of the
REMIC I Regular Interests and the Certificates, as applicable, as follows:

ARTICLE
I

Section 1.01.         Definitions.

Whenever used in this Agreement, the following words and phrases,
unless the context otherwise requires, shall have the following meanings:

Aggregate Certificate Principal
Balance: At any given time, the sum of the then current Class Principal Balances of the
Certificates.

Appraised Value: The amount
set forth in an appraisal made by or for (a) the mortgage originator in connection with its origination of each Mortgage Loan
(including a Mortgage Loan originated to refinance mortgage debt), (b) with respect to a Mortgage Loan originated to refinance
mortgage debt, the originator of the mortgage debt that was refinanced or (c) the Servicer, at any time, in accordance with the
Selling and Servicing Contract.

Assignment of Proprietary Lease: With respect to a Cooperative Loan, the assignment or mortgage of the related Cooperative Lease from the Mortgagor to the
originator of the Cooperative Loan.

Authenticating Agent: Any
authenticating agent appointed by the Trustee pursuant to Section 8.11.

Authorized Denomination:
With respect to the Certificates (other than the Class X and Class R Certificates), an initial Certificate Principal Balance equal
to $25,000 and multiples of $1 in excess thereof, except that one Certificate of each Class of the Junior Subordinate Certificates
may be issued in an amount that is not an integral multiple of $1.  With respect to the Class X Certificates, a Class Notional
Amount as of the Cut-Off Date equal to $100,000 and multiples of $1 in excess thereof.  With respect to the Class R
Certificates, one Certificate with a Percentage Interest equal to 0.01% and one Certificate with a Percentage Interest equal to
99.99%.

Bankruptcy Loss: A loss on a
Mortgage Loan arising out of (i) a reduction in the scheduled Monthly Payment for such Mortgage Loan by a court of competent
jurisdiction in a case under the United States Bankruptcy Code, including, without limitation, any such reduction that results in a
permanent forgiveness of principal, or (ii) with respect to any Mortgage Loan, a valuation, by a court of competent jurisdiction in
a case under such Bankruptcy Code, of the related Mortgaged Property in an amount less than the then outstanding Principal Balance
of such Mortgage Loan.

 

5

 

Beneficial Holder: A Person
holding a beneficial interest in any Book-Entry Certificate as or through a DTC Participant or an Indirect DTC Participant or a
Person holding a beneficial interest in any Definitive Certificate.

Benefit Plan Opinion: With
respect to any Certificate presented for registration in the name of any Person, an Opinion of Counsel acceptable to and in form
and substance satisfactory to the Trustee and the Company to the effect that the purchase or holding of such Certificate is
permissible under applicable law, will not constitute or result in a non-exempt prohibited transaction under Section 406 of ERISA
or Section 4975 of the Code, and will not subject the Trust, the Trustee, the Delaware Trustee, the Master Servicer or the Company
to any obligation or liability (including obligations or liabilities under Section 406 of ERISA or Section 4975 of the Code) in
addition to those undertaken in this Agreement, which Opinion of Counsel shall not be an expense of the Trust, the Trustee, the
Delaware Trustee, the Master Servicer or the Company.

Book-Entry Certificates: The
Class A, Class X, Class P and Senior Subordinate Certificates, beneficial ownership and transfers of which shall be made through
book entries as described in Section 5.07.

Business Day: Any day other
than a Saturday, a Sunday, or a day on which banking institutions in Stockton, California, Chicago, Illinois, New York, New York,
Seattle, Washington or any city in which the Corporate Trust Office is located are authorized or obligated by law or executive
order to be closed.

Buydown Agreement: An
agreement between a Person and a Mortgagor pursuant to which such Person has provided a Buydown Fund.

Buydown Fund: A fund
provided by the originator of a Mortgage Loan or another Person with respect to a Buydown Loan which provides an amount sufficient
to subsidize regularly scheduled principal and interest payments due on such Buydown Loan for a period. Buydown Funds may be (i)
funded at the par values of future payment subsidies, or (ii) funded in an amount less than the par values of future payment
subsidies, and determined by discounting such par values in accordance with interest accruing on such amounts, in which event they
will be deposited in an account bearing interest. Buydown Funds may be held in a separate Buydown Fund Account or may be held in a
Custodial Account for P&I or a Custodial Account for Reserves and monitored by a Servicer.

Buydown Fund Account: A
separate account or accounts created and maintained pursuant to Section 3.02 (a) with the corporate trust department of the Trustee
or another financial institution approved by the Master Servicer, (b) within FDIC insured accounts (or other accounts with
comparable insurance coverage acceptable to the Rating Agencies) created, maintained and monitored by a Servicer or (c) in a
separate non-trust account without FDIC or other insurance in an Eligible Institution. Such account or accounts may be non-interest
bearing or may bear interest. In the event that a Buydown Fund Account is established pursuant to clause (b) of the preceding
sentence, amounts held in such Buydown Fund Account shall not exceed the level of deposit insurance coverage on such account;
accordingly, more than one Buydown Fund Account may be established.

 

6

 

 

Buydown Loan: A Mortgage
Loan for which the Mortgage Interest Rate has been subsidized through a Buydown Fund provided at the time of origination of such
Mortgage Loan.

Carry-Forward Subsequent Recoveries
Amount: For any Distribution Date and any Loan Group, the excess, if any, of (i) the
Subsequent Recoveries for such Distribution Date for such Loan Group over (ii) the amount by which the Class Principal Balance of
the Class of Subordinate Certificates with the lowest priority is increased in respect of Subsequent Recoveries for such Loan Group
on such Distribution Date pursuant to the definition of “Class Principal Balance” herein.

Certificate: Any one of the
Certificates issued pursuant to this Agreement, executed by the Trustee and authenticated by or on behalf of the Trustee hereunder
in substantially one of the forms set forth in Exhibit A and B hereto. The additional matter appearing in Exhibit H shall be deemed
incorporated into Exhibit A as though set forth at the end of such Exhibit.

Certificate Account: The
separate trust account created and maintained with the Trustee, the Investment Depository or any other bank or trust company
acceptable to the Rating Agencies which is incorporated under the laws of the United States or any state thereof pursuant to
Section 3.04, which account shall bear a designation clearly indicating that the funds deposited therein are held in trust for the
benefit of the Trust or any other account serving a similar function acceptable to the Rating Agencies. Funds in the Certificate
Account in respect of the Mortgage Loans in each of the Loan Groups and amounts withdrawn from the Certificate Account attributable
to each of such Loan Groups shall be accounted for separately. Funds in the Certificate Account may be invested in Eligible
Investments pursuant to Section 3.04(b) and reinvestment earnings thereon shall be paid to the Master Servicer as additional
servicing compensation. Funds deposited in the Certificate Account (exclusive of the Master Servicing Fee) shall be held in trust
for the Certificateholders and for the uses and purposes set forth in Section 2.01, Section 3.04, Section 3.05, Section 4.01,
Section 4.04 and Section 4.05.

Certificate Group: The Group
I Certificates, Group II Certificates, Group III Certificates or Group IV Certificates, as applicable.

Certificateholder or Holder:
With respect to the Certificates, the person in whose name a Certificate is registered in the Certificate Register, except that,
solely for the purposes of giving any consent pursuant to this Agreement, any Certificate registered in the name of the Company,
the Master Servicer or any affiliate thereof shall be deemed not to be outstanding and the Percentage Interest evidenced thereby
shall not be taken into account in determining whether the requisite percentage of Percentage Interests necessary to effect any
such consent has been obtained; provided, that the Trustee may conclusively rely upon an Officer’s Certificate to determine
whether any Person is an affiliate of the Company or the Master Servicer. With respect to the REMIC I Regular Interests, the owner
of the REMIC I Regular Interests, which as of the Closing Date shall be the Trust.

Certificate Interest Rate:
For each Class of Certificates and REMIC I Regular Interests, the per annum rate set forth as the Certificate Interest Rate for
such Class in the Preliminary Statement hereto.

 

7

 

 

Certificate of Trust: The
certificate of trust filed with respect to the Trust with the Secretary of State in accordance with Section 3810(a) of the
Statutory Trust Statute.

Certificate Principal Balance: For each Certificate of any Class, the portion of the related Class Principal Balance, if any, represented by such
Certificate.

Certificate Register and Certificate
Registrar: The register maintained and the registrar appointed, respectively, pursuant to Section
5.03.

Class: All REMIC I Regular
Interests or the Class R-1 Residual Interest having the same priority and rights to payments on the Mortgage Loans from the REMIC I
Available Distribution Amount, and all REMIC II Regular Interests or the Class R-2 Residual Interest having the same priority and
rights to payments on the REMIC I Regular Interests from the REMIC II Available Distribution Amount, as applicable, which REMIC I
Regular Interests, REMIC II Regular Interests and Class R Residual Interests, as applicable, shall be designated as a separate
Class, and which, in the case of the Certificates (including the Class R Certificates representing ownership of the Class R
Residual Interests), shall be set forth in the applicable forms of Certificates attached hereto as Exhibits A and B. Each Class of
REMIC I Regular Interests and the Class R-1 Residual Interest shall be entitled to receive the amounts allocated to such Class
pursuant to the definition of “REMIC I Distribution Amount” only to the extent of the REMIC I Available Distribution
Amount for such Distribution Date remaining after distributions in accordance with prior clauses of the definition of “REMIC
I Distribution Amount,” and each Class of REMIC II Regular Interests and the Class R-2 Residual Interest shall be entitled to
receive the amounts allocated to such Class pursuant to the definition of “REMIC II Distribution Amount” only to the
extent of the REMIC II Available Distribution Amount for such Distribution Date remaining after distributions in accordance with
prior clauses of the definition of “REMIC II Distribution Amount.”

Class A Certificates: The
Class I-A, Class II-A, Class III-A and Class IV-A Certificates.

Class B Certificates: The
Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates.

Class B Percentage: For any
date of determination, the aggregate Class Principal Balance of the Class B Certificates divided by the then outstanding aggregate
Principal Balance of the Mortgage Loans.

Class B-1 Certificates: The
Certificates designated as “Class B-1” on the face thereof in substantially the form attached hereto as Exhibit
A.

Class B-2 Certificates: The
Certificates designated as “Class B-2” on the face thereof in substantially the form attached hereto as Exhibit
A.

Class B-3 Certificates: The
Certificates designated as “Class B-3” on the face thereof in substantially the form attached hereto as Exhibit
A.

Class B-4 Certificates: The
Certificates designated as “Class B-4” on the face thereof in substantially the form attached hereto as Exhibit
A.

 

8

 

 

Class B-5 Certificates: The
Certificates designated as “Class B-5” on the face thereof in substantially the form attached hereto as Exhibit
A.

Class B-6 Certificates: The
Certificates designated as “Class B-6” on the face thereof in substantially the form attached hereto as Exhibit
A.

Class C-X Certificates: The
Certificates designated as “Class C-X” on the face thereof in substantially the form attached hereto as Exhibit
A.

Class C-X Notional Amount:
With respect to any Distribution Date, the product of (x) the aggregate scheduled principal balance, as of the second
preceding Due Date after giving effect to payments scheduled to be received as of such Due Date, whether or not received (and after
giving effect to Principal Prepayments, Monthly P&I Advances and the principal portion of Realized Losses applied prior to such
Due Date), or with respect to the initial Distribution Date, as of the Cut-Off Date, of the Group I Premium Rate Mortgage Loans,
the Group II Premium Rate Mortgage Loans, the Group III Premium Rate Mortgage Loans and the Group IV Premium Rate Mortgage Loans
and (y) a fraction, the numerator of which is the weighted average of the Stripped Interest Rates for the Group I Premium Rate
Mortgage Loans, the Group II Premium Rate Mortgage Loans, the Group III Premium Rate Mortgage Loans and the Group IV Premium Rate
Mortgage Loans as of such Due Date and the denominator of which is 6.500%.

Class C-X-M Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I Regular Interest and is entitled to
distributions as set forth herein.

Class C-Y Principal Reduction Amounts:  For any Distribution Date, the amounts by which the Class Principal Balances of the Class C-Y-1, Class
C-Y-2 and Class C-Y-3 Regular Interests, respectively, will be reduced on such Distribution Date by the allocation of Realized
Losses and the distribution of principal, determined as described in Appendix 1.

Class C-Y Regular Interests:
The Class C-Y-1, Class C-Y-2 and Class C-Y-3 Regular Interests.

Class C-Y-1 Principal Distribution
Amount:  For any Distribution Date, the excess, if any, of the Class C-Y-1 Principal
Reduction Amount for such Distribution Date over the principal portion of Realized Losses allocated to the Class C-Y-1 Regular
Interest on such Distribution Date.

Class C-Y-1 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I Regular Interest and is entitled to
distributions as set forth herein.

Class C-Y-2 Principal Distribution
Amount:  For any Distribution Date, the excess, if any, of the Class C-Y-2 Principal
Reduction Amount for such Distribution Date over the principal portion of Realized Losses allocated to the Class C-Y-2 Regular
Interest on such Distribution Date.

Class C-Y-2 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I Regular Interest and is entitled to
distributions as set forth herein.

 

9

 

 

Class C-Y-3 Principal Distribution
Amount:  For any Distribution Date, the excess, if any, of the Class C-Y-3 Principal
Reduction Amount for such Distribution Date over the principal portion of Realized Losses allocated to the Class C-Y-3 Regular
Interest on such Distribution Date.

Class C-Y-3 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I Regular Interest and is entitled to
distributions as set forth herein.

Class C-Z Principal Reduction Amounts: For any Distribution Date, the amounts by which the Class Principal Balances of the Class C-Z-1, Class C-Z-2 and Class
C-Z-3 Regular Interests, respectively, will be reduced on such Distribution Date by the allocation of Realized Losses and the
distribution of principal, which shall be in each case the excess of (A) the sum of (x) the excess of the REMIC I Available
Distribution Amount for the related Loan Group or Groups (i.e. the “related Loan Groups” for the Class C-Z-1 Regular
Interest are Loan Group I and Loan Group IV, the “related Loan Group” for the Class C-Z-2 Regular Interest is Loan
Group II, and the “related Loan Group” for the Class C-Z-3 Regular Interest is Loan Group III) over the sum of the
amounts thereof distributable (i) to the Class C-X-M Regular Interest, (ii) in the case of Loan Group I, to the Class I-P-M Regular
Interest and, in the case of Loan Group III, to the Class III-P-M Regular Interest, (iii) in respect of interest on such Class C-Z
Regular Interest and the related Class C-Y Regular Interest, (iv) to such Class C-Z Regular Interest and the related Class C-Y
Regular Interest pursuant to clause (d)(ii) of the definition of “REMIC I Distribution Amount” and (v) in the case of
Loan Group III, to the Class R-1 Residual Interest and (y) the amount of Realized Losses allocable to principal for the related
Loan Group or Groups (reduced, in the case of Loan Group I, by the amount allocable to the Class I-P-M Regular Interest and, in the
case of Loan Group III, by the amount allocable to the Class III-P-M Regular Interest) over (B) the Class C-Y Principal Reduction
Amount for the related Loan Group or Groups.

Class C-Z Regular Interests:
The Class C-Z-1, Class C-Z-2 and Class C-Z-3 Regular Interests.

Class C-Z-1 Principal Distribution
Amount: For any Distribution Date, the excess, if any, of the Class C-Z-1 Principal Reduction Amount for
such Distribution Date over the principal portion of Realized Losses allocated to the Class C-Z-1 Regular Interest on such
Distribution Date.

Class C-Z-1 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I Regular Interest and is entitled to
distributions as set forth herein.

Class C-Z-2 Principal Distribution
Amount: For any Distribution Date, the excess, if any, of the Class C-Z-2 Principal Reduction Amount for
such Distribution Date over the principal portion of Realized Losses allocated to the Class C-Z-2 Regular Interest on such
Distribution Date.

Class C-Z-2 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I Regular Interest and is entitled to
distributions as set forth herein.

Class C-Z-3 Principal Distribution
Amount: For any Distribution Date, the excess, if any, of the Class C-Z-3 Principal Reduction Amount for
such Distribution Date over the principal portion of Realized Losses allocated to the Class C-Z-3 Regular Interest on such
Distribution Date.

 

10

 

 

Class C-Z-3 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I Regular Interest and is entitled to
distributions as set forth herein.

Class I-A Certificates: The
Certificates designated as “Class I-A” on the face thereof in substantially the form attached hereto as Exhibit
A.

Class I-P Certificates: The
Certificates designated as “Class I-P” on the face thereof in substantially the form attached hereto as Exhibit
A.

Class I-P Fraction: For each
Class I-P Mortgage Loan, a fraction, the numerator of which is 6.000% less the Pass-Through Rate on such Class I-P Mortgage Loan
and the denominator of which is 6.000%.

Class I-P Mortgage Loan: Any
Group I Loan with a Pass-Through Rate of less than 6.000% per annum.

Class I-P-M Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I Regular Interest and is entitled to
distributions as set forth herein.

Class II-A Certificates: The
Certificates designated as “Class II-A” on the face thereof in substantially the form attached hereto as Exhibit
A.

Class III-A Certificates:
The Certificates designated as “Class III-A” on the face thereof in substantially the form attached hereto as Exhibit
A.

Class III-P Certificates:
The Certificates designated as “Class I-P” on the face thereof in substantially the form attached hereto as Exhibit
A.

Class III-P Fraction: For
each Class III-P Mortgage Loan, a fraction, the numerator of which is 5.500% less the Pass-Through Rate on such Class III-P
Mortgage Loan and the denominator of which is 5.500%.

Class III-P Mortgage Loan:
Any Group III Loan with a Pass-Through Rate of less than 5.500% per annum.

Class III-P-M Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I Regular Interest and is entitled to
distributions as set forth herein.

Class IV-A Certificates: The
Certificates designated as “Class IV-A” on the face thereof in substantially the form attached hereto as Exhibit
A.

Class Notional Amount: 
With respect to the Class C-X Certificates and the Class C-X-M Regular Interest, the related notional amount for such Class, as
specified herein (e.g., the “Class Notional Amount” for the Class C-X Certificates and the Class C-X-M Regular
Interest is the Class C-X Notional Amount).

Class P Certificates: The
Class I-P and Class III-P Certificates.

 

11

 

 

Class P Fraction: Any Class
I-P or Class III-P Fraction, as applicable.

Class P Mortgage Loan: Any
of the Class I-P or Class III-P Mortgage Loans.

Class P-M Regular Interests:
The Class I-P-M and Class III-P-M Regular Interests.

Class Principal Balance: For
any Class of Certificates, for any Class of REMIC I Regular Interests and for the Class R-1 Residual Interest, the applicable
initial Class Principal Balance therefor set forth in the Preliminary Statement hereto (or, in the case of the Class R
Certificates, the Class Principal Balance of the Class R-1 Residual Interest), corresponding to the rights of such Class in
payments of principal due to be passed through to the Certificateholders or the Holders of the REMIC I Regular Interests from
principal payments on the Mortgage Loans or the REMIC I Regular Interests, as applicable, as reduced from time to time by (x)
distributions of principal and (y) the portion of Realized Losses allocated to the Class Principal Balance of such Class pursuant
to the definition of “Realized Loss” (including amounts allocated as losses to the Class B Certificates pursuant to the
fourth paragraph of the definition of “Realized Loss”) with respect to a given Distribution Date. For any Distribution
Date, the reduction of the Class Principal Balance of any Class of Certificates and REMIC I Regular Interests pursuant to the
definition of “Realized Loss” shall be deemed effective after the determination and distribution of principal on such
Class pursuant to the definitions of “REMIC I Distribution Amount” and “REMIC II Distribution
Amount.”

Notwithstanding the foregoing, (A) any amounts distributed in respect
of principal losses pursuant to paragraph (e)(i) or (e)(ii) of the definition of “REMIC II Distribution Amount” shall
not cause a reduction in the Class Principal Balance of the Class P Certificates, (B) any amounts distributed in respect of
principal losses pursuant to paragraph (e)(xxi) of the definition of “REMIC II Distribution Amount” shall not cause a
reduction in the Class Principal Balances of the REMIC II Regular Interests, (C) any amounts distributed in respect of principal
losses pursuant to clause (d)(i) of the definition of “REMIC I Distribution Amount” shall not cause a reduction in the
Class Principal Balance of the Class P-M Regular Interests, (D) any amounts distributed in respect of principal losses pursuant to
clause (d)(ii) of the definition of “REMIC I Distribution Amount” shall not cause a reduction in the Class Principal
Balances of the REMIC I Regular Interests and (E) any amounts distributed to the REMIC I Regular Interests in respect of Subsequent
Recoveries shall not cause a reduction in the Class Principal Balances of the REMIC I Regular Interests.

In addition to the foregoing, on each Distribution Date, the Class
Principal Balance of the Class of Subordinate Certificates with the lowest priority then outstanding shall be increased by an
amount, for each Loan Group, equal to the lesser of (i) the Subsequent Recoveries for such Distribution Date for such Loan Group
and (ii) the amount of Realized Losses for Mortgage Loans in such Loan Group allocated to such Class on previous Distribution Dates
(the amount in this clause (ii) reduced by the amount, if any, by which such Class Principal Balance has been increased on prior
Distribution Dates pursuant to this paragraph in respect of Subsequent Recoveries for such Loan Group).

The Class Principal Balance for the Class I-A Certificates shall be
referred to as the “Class I-A Principal Balance,” the Class Principal Balance for the Class II-A Certificates shall be
referred to as the “Class II-A Principal Balance” and so on.  The Class Principal Balances for the Class C-X
Certificates and the Class C-X-M Regular Interest shall each be zero.

 

12

 

 

Class R Certificates: The
Certificates designated as “Class R” on the face thereof in substantially the form attached hereto as Exhibit B,
representing ownership of the Class R-1 and Class R-2 Residual Interests, each of which Class of Residual Interests has been
designated as the sole class of “residual interest” in REMIC I and REMIC II, respectively, pursuant to Section 2.06 and
Section 2.11, respectively, for purposes of Section 860G(a)(2) of the Code.

Class R Residual Interests:
The Class R-1 and Class R-2 Residual Interests (which shall be transferable only
as a unit evidenced by the Class R Certificates, in accordance with the
applicable provisions of Section 5.01).

Class R-1 Residual Interest: The uncertificated undivided beneficial interest in REMIC I which
has been designated as the single class of “residual interest” in REMIC I pursuant to Section 2.06.  The Class R-1
Residual Interest, together with the REMIC I Regular Interests, shall be deemed to be a separate series of beneficial interests in
the assets of the Trust consisting of the REMIC I Assets pursuant to Section 3806(b)(2) of the Statutory Trust Statute.

Class R-2 Residual Interest:
The uncertificated undivided beneficial interest in REMIC II which has been designated as the single class of “residual
interest” in REMIC II pursuant to Section 2.11.  The Class R-2 Residual Interest, together with the REMIC II Regular
Interests, shall be deemed to be a separate series of beneficial interests in the assets of the Trust consisting of the REMIC II
Assets pursuant to Section 3806(b)(2) of the Statutory Trust Statute.

Class X Certificates: The
Class C-X Certificates.

Class X-M Regular Interest:
The Class C-X-M Regular Interest.

Clean-Up Call Percentage:
5%.

Clearing Agency: An
organization registered as a “clearing agency” pursuant to Section 17A of the Securities Exchange Act of 1934, as
amended, which initially shall be DTC.

Closing Date: August 24, 2004, which is the date of settlement of the sale of the Certificates to the original
purchasers thereof.

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

Company: Washington Mutual
Mortgage Securities Corp., a Delaware corporation, or its
successor-in-interest.

Compensating Interest: For
any Distribution Date with respect to each Loan Group and the Mortgage Loans contained therein, the lesser of (i) the sum of (a)
the aggregate Master Servicing Fee payable with respect to such Loan Group on such Distribution Date, (b) the aggregate Payoff
Earnings with respect to such Loan Group for such Distribution Date and (c) the aggregate Payoff Interest with respect to such Loan
Group for such Distribution Date and (ii) the aggregate Uncollected Interest with respect to such Loan Group for such Distribution
Date.

 

13

 

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

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

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

Cooperative Loans:  Any
of the Mortgage Loans made in respect of a Cooperative Apartment, evidenced by a Mortgage Note and secured by (i) a Security
Agreement, (ii) the related Cooperative Stock Certificate, (iii) an assignment or mortgage of the Cooperative Lease, (iv) financing
statements and (v) a stock power (or other similar instrument), and ancillary thereto, a Recognition Agreement, each of which was
transferred and assigned to the Trust pursuant to Section 2.04.

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

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

Corporate Trust Office: The
corporate trust office of the Trustee, at which at any particular time its corporate trust business with respect to this Agreement
shall be administered, which office at the date of the execution of this Agreement is located at 111 Wall Street, 14th Floor, Zone
3, New York, New York 10005, Attention: Structured Finance Group, Washington Mutual 2004-CB3.

Corporation: Any Person
(other than an individual, partnership, joint venture or unincorporated organization) incorporated, associated, organized,
chartered or existing under the laws of any state or under the federal laws of the United States of America; provided, that
such Person have indefinite existence under the law of its domicile.

Cumulative Carry-Forward Subsequent Recoveries
Amount: For any Distribution Date, the sum of (i) the Carry-Forward Subsequent
Recoveries Amount for such Distribution Date and (ii) the Carry-Forward Subsequent Recoveries Amounts for prior Distribution Dates
to the extent such Carry-Forward Subsequent Recoveries Amounts have not been applied in reduction of Realized Losses on prior
Distribution Dates pursuant to the first paragraph of the definition of “Realized Loss” herein.

Curtailment: Any payment of
principal on a Mortgage Loan, made by or on behalf of the related Mortgagor, other than a Monthly Payment, a Prepaid Monthly
Payment or a Payoff, which is applied to reduce the outstanding principal balance of the Mortgage Loan. (Prepayment penalties are
not payments of principal and hence Curtailments do not include prepayment penalties.)

 

14

 

 

Curtailment Shortfall: For
any Distribution Date and for any Curtailment applied with a Monthly Payment in the Prior Period other than a Prepaid Monthly
Payment, an amount equal to one month’s interest on such Curtailment at the applicable Pass-Through Rate on such Mortgage
Loan.

Custodial Account for P&I: The Custodial Account for principal and interest established and maintained by each Servicer pursuant to its Selling and
Servicing Contract and caused by the Master Servicer to be established and maintained pursuant to Section 3.02 (a) with the
corporate trust department of the Trustee or another financial institution approved by the Master Servicer such that the rights of
the Master Servicer, the Trustee, the Trust, the Delaware Trustee and the Certificateholders thereto shall be fully protected
against the claims of any creditors of the applicable Servicer and of any creditors or depositors of the institution in which such
account is maintained, (b) within FDIC insured accounts (or other accounts with comparable insurance coverage acceptable to the
Rating Agencies) created, maintained and monitored by a Servicer or (c) in a separate non-trust account without FDIC or other
insurance in an Eligible Institution. In the event that a Custodial Account for P&I is established pursuant to clause (b) of
the preceding sentence, amounts held in such Custodial Account for P&I shall not exceed the level of deposit insurance coverage
on such account; accordingly, more than one Custodial Account for P&I may be established. Any amount that is at any time not
protected or insured in accordance with the first sentence of this definition of “Custodial Account for P&I” shall
promptly be withdrawn from such Custodial Account for P&I and be remitted to the Investment Account.

Custodial Account for Reserves: The Custodial Account for Reserves established and maintained by each Servicer pursuant to its Selling and Servicing Contract
and caused by the Master Servicer to be established and maintained pursuant to Section 3.02 (a) with the corporate trust department
of the Trustee or another financial institution approved by the Master Servicer such that the rights of the Master Servicer, the
Trust, the Trustee, the Delaware Trustee and the Certificateholders thereto shall be fully protected against the claims of any
creditors of the applicable Servicer and of any creditors or depositors of the institution in which such account is maintained, (b)
within FDIC insured accounts (or other accounts with comparable insurance coverage acceptable to the Rating Agencies) created,
maintained and monitored by a Servicer or (c) in a separate non-trust account without FDIC or other insurance in an Eligible
Institution. In the event that a Custodial Account for Reserves is established pursuant to clause (b) of the preceding sentence,
amounts held in such Custodial Account for Reserves shall not exceed the level of deposit insurance coverage on such account;
accordingly, more than one Custodial Account for Reserves may be established. Any amount that is at any time not protected or
insured in accordance with the first sentence of this definition of “Custodial Account for Reserves” shall promptly be
withdrawn from such Custodial Account for Reserves and be remitted to the Investment Account.

Custodial Agreement: The
agreement, if any, between the Trustee and a Custodian (or the Trustee, a Custodian and the Master Servicer) providing for the
safekeeping of the Mortgage Files on behalf of the Trust.

 

15

 

 

Custodian: A custodian which
is appointed by the Trustee with the consent of the Master Servicer, as provided in Article II hereof, pursuant to a Custodial
Agreement. Any Custodian so appointed shall act as agent on behalf of the Trustee.  The reasonable fees and expenses of the
Custodian shall be paid by the Master Servicer. The Trustee shall remain at all times responsible under the terms of this
Agreement, notwithstanding the fact that certain duties have been assigned to a Custodian.

Cut-Off Date: August 1, 2004.

Definitive Certificates:
Certificates in definitive, fully registered and certificated form.

DelawareTrustee: Christiana Bank & Trust Company, or its successor-in-interest as provided in Section
8.09, or any successor trustee appointed as herein provided.

Depositary Agreement: The
Letter of Representations, dated August 23, 2004 by and among DTC, the Trust and the
Trustee. The Trustee is authorized to enter into the Depositary Agreement on behalf of the Trust.

Destroyed Mortgage Note: A
Mortgage Note the original of which (or a portion of the original of which) was permanently lost or destroyed and has not been
replaced.

Determination Date: A day
not later than the 10th day preceding a related Distribution Date, as determined by the Master Servicer.

Disqualified Organization:  Any Person which is not a Permitted Transferee, but does not include any Pass-Through Entity which owns or holds a
Residual Certificate and of which a Disqualified Organization, directly or indirectly, may be a stockholder, partner or
beneficiary.

Distribution Date: With
respect to distributions on the REMIC I Regular Interests and the Certificates, the 25th day (or, if such 25th day is not a
Business Day, the Business Day immediately succeeding such 25th day) of each month, with the first such date being September 27, 2004.  The “related Due Date” for any Distribution Date is the Due
Date immediately preceding such Distribution Date.

DTC: The Depository Trust
Company.

DTC Participant: A broker,
dealer, bank, other financial institution or other Person for whom DTC effects book-entry transfers and pledges of securities
deposited with DTC.

Due Date: The day on which
the Monthly Payment for each Mortgage Loan is due.

Eligible Institution: An
institution having (i) the highest short-term debt rating, and one of the two highest long-term debt ratings of the Rating
Agencies, (ii) with respect to any Custodial Account for P&I and special Custodial Account for Reserves, an unsecured long-term
debt rating of at least one of the two highest unsecured long-term debt ratings of the Rating Agencies, (iii) with respect to any
Buydown Fund Account or Custodial Account which also serves as a Buydown Fund Account, the highest unsecured long-term debt rating
by the Rating Agencies, or (iv) the approval of the Rating Agencies. Such institution may be the Servicer if the applicable Selling
and Servicing Contract requires the Servicer to provide the Master Servicer with written notice on the Business Day following the
date on which the Servicer determines that such Servicer’s short-term debt and unsecured long-term debt ratings fail to meet
the requirements of the prior sentence.  Notwithstanding the foregoing, Washington Mutual Bank, FA shall be an “Eligible
Institution” if the following conditions are satisfied: (i) Washington Mutual Bank, FA is acting as Servicer, (ii) if
S&P is a Rating Agency as defined herein, the long-term unsecured debt obligations of Washington Mutual Bank, FA are rated no
lower than “A-” by S&P and the short-term unsecured debt obligations of Washington Mutual Bank, FA are rated no
lower than “A-2” by S&P, (iii) if Fitch is a Rating Agency as defined herein, the long-term unsecured debt
obligations of Washington Mutual Bank, FA are rated no lower than “A” by Fitch and the short-term unsecured debt
obligations of Washington Mutual Bank, FA are rated no lower than “F1” by Fitch and (iv) if Moody’s is a Rating
Agency as defined herein, the long-term unsecured debt obligations of Washington Mutual Bank, FA are rated no lower than
“A2” by Moody’s and the short-term unsecured debt obligations of Washington Mutual Bank, FA are rated no lower
than “P-1” by Moody’s; provided, that if the long-term or short-term unsecured debt obligations of Washington
Mutual Bank, FA are downgraded by any of the Rating Agencies to a rating lower than the applicable rating specified in this
sentence, Washington Mutual Bank, FA shall cease to be an “Eligible Institution” ten Business Days after notification
of such downgrade.

 

16

 

 

Eligible Investments: Any
one or more of the obligations or securities listed below in which funds deposited in the Investment Account, the Certificate
Account, the Custodial Account for P&I and the Custodial Account for Reserves may be invested:

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

(ii)                Repurchase agreements on obligations described in clause (i) of this definition of “Eligible Investments,”
provided that the unsecured obligations of the party (including the Trustee in its commercial capacity) agreeing to repurchase such
obligations have at the time one of the two highest short term debt ratings  of the Rating Agencies and provided that such
repurchaser’s unsecured long term debt has one of the two highest unsecured long term debt ratings of the Rating
Agencies;

(iii)               Federal funds, certificates of deposit, time deposits and bankers’ acceptances of any U.S. bank or trust company
incorporated under the laws of the United States or any state (including the Trustee in its commercial capacity), provided that the
debt obligations of such bank or trust company (or, in the case of the principal bank in a bank holding company system, debt
obligations of the bank holding company) at the date of acquisition thereof have one of the two highest short term debt ratings of
the Rating Agencies and unsecured long term debt has one of the two highest unsecured long term debt ratings of the Rating
Agencies;

(iv)              Obligations of, or obligations guaranteed by, any state of the United States or the District of Columbia, provided that such
obligations at the date of acquisition thereof shall have the highest long-term debt ratings available for such securities from the
Rating Agencies;

 

17

 

 

(v)                Commercial paper of any corporation incorporated under the laws of the United States or any state thereof, which on the
date of acquisition has the highest commercial paper rating of the Rating Agencies, provided that the corporation has unsecured
long term debt that has one of the two highest unsecured long term debt ratings of the Rating Agencies;

(vi)              Securities (other than stripped bonds or stripped coupons) bearing interest or sold at a discount that are issued by any
corporation incorporated under the laws of the United States or any state thereof and have the highest long-term unsecured rating
available for such securities from the Rating Agencies; provided, however, that securities issued by any such corporation will not
be investments to the extent that investment therein would cause the outstanding principal amount of securities issued by such
corporation that are then held as part of the Investment Account or the Certificate Account to exceed 20% of the aggregate
principal amount of all Eligible Investments then held in the Investment Account and the Certificate Account; and

(vii)             Units of
taxable money market funds (which may be 12b-1 funds, as contemplated under the rules promulgated by the Securities and Exchange
Commission under the Investment Company Act of 1940), which funds have the highest rating available for such securities from the
Rating Agencies or which have been designated in writing by the Rating Agencies as Eligible Investments;

provided, however, that such
obligation or security is held for a temporary period pursuant to Section 1.860G-2(g)(1) of the Treasury Regulations, and that such
period can in no event exceed thirteen months.

In no event shall an instrument be an Eligible Investment if such
instrument (a) evidences a right to receive only interest payments with respect to the obligations underlying such instrument or
(b) has been purchased at a price greater than the outstanding principal balance of such instrument.

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

ERISA Restricted Certificate: Any Senior Subordinate Certificate.

Event of Default: Any event
of default as specified in Section 7.01.

Excess Liquidation Proceeds:
With respect to any Distribution Date, the sum of (i) the excess, if any, of aggregate Liquidation Proceeds received during the
Prior Period over the amount that would have been received if Payoffs had been made with respect to such Mortgage Loans on the date
such Liquidation Proceeds were received and (ii) any Excess Subsequent Recoveries for any Loan Group for such Distribution
Date.

Excess Subsequent Recoveries: For any Distribution Date and any Loan Group, the excess, if any, of (i) amounts received by the Master Servicer during the
Prior Period (after deduction of amounts reimbursable under Section 3.05(a)(i) and (ii)) in connection with the liquidation of
defaulted Mortgage Loans in such Loan Group after such Mortgage Loans became Liquidated Mortgage Loans over (ii) the Subsequent
Recoveries for such Distribution Date for such Loan Group.

 

18

 

 

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

FHA: Federal Housing
Administration, or any successor thereto.

Fannie Mae: The entity
formerly known as the Federal National Mortgage Association, or any successor thereto.

Final Maturity Date:  With respect to each Class of the REMIC I Regular Interests and the Certificates, the date set forth in the
applicable table contained in the Preliminary Statement hereto.

Fitch:  Fitch Ratings, provided that at any time it be a Rating Agency.

Freddie Mac: The entity
formerly known as the Federal Home Loan Mortgage Corporation, or any successor thereto.

Group I Certificates: 
The Class I-A and Class I-P Certificates.

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

Group I Premium Rate Mortgage Loans: The Group I Loans having Pass-Through Rates greater than or equal to 6.000% per annum.

Group I Senior Liquidation Amount: For any Distribution Date, the sum of (A) the aggregate, for each Group I Loan which became a Liquidated Mortgage Loan
during the Prior Period, of the lesser of: (i) the Group I Senior Percentage of the Principal Balance of such Mortgage Loan
(exclusive of the Class I-P Fraction thereof, with respect to any Class I-P Mortgage Loan) and (ii) the Group I Senior Prepayment
Percentage of the Liquidation Principal with respect to such Mortgage Loan and (B) the Group I Senior Prepayment Percentage of any
Subsequent Recoveries for Loan Group I for such Distribution Date.

Group I Senior Percentage:
For any Distribution Date, the lesser of (i) 100% and (ii) the Class I-A Principal Balance divided by the aggregate Principal
Balance of the Group I Loans (exclusive of the Class I-P Fraction thereof, with respect to any Class I-P Mortgage Loan), in each
case immediately before such Distribution Date.

Group I Senior Prepayment Percentage, Group II Senior
Prepayment Percentage, Group III Senior Prepayment Percentage or Group IV Senior Prepayment Percentage:
For any Distribution Date, each of the Group I Senior Prepayment Percentage, the Group II Senior Prepayment Percentage, the Group
III Senior Prepayment Percentage and the Group IV Senior Prepayment Percentage shall equal 100%, unless (i) the Group I Senior
Percentage for such Distribution Date is less than or equal to the Group I Senior Percentage as of the Closing Date, the Group II
Senior Percentage for such Distribution Date is less than or equal to the Group II Senior Percentage as of the Closing Date, the
Group III Senior Percentage for such Distribution Date is less than or equal to the Group III Senior Percentage as of the Closing
Date, and the Group IV Senior Percentage for such Distribution Date is less than or equal to the Group IV Senior Percentage as of
the Closing Date, (ii) such Distribution Date occurs on or after the fifth anniversary of the first Distribution Date and (iii) the
following tests specified in clauses (a) through (h) are met with respect to each of Loan Group I, Loan Group II, Loan Group III
and Loan Group IV:

 

19

 

 

(a)           the mean aggregate Principal Balance as of the Distribution
Date in each of the immediately preceding six calendar months of the Group I Loans which were 60 or more days delinquent as of such
date (including Mortgage Loans in bankruptcy or foreclosure and Mortgaged Properties held by REMIC I) is less than or equal to 50%
of the Subordinate Component Balance for Loan Group I as of the current Distribution Date,

(b)           the mean aggregate Principal Balance as of the Distribution
Date in each of the immediately preceding six calendar months of the Group II Loans which were 60 or more days delinquent as of
such date (including Mortgage Loans in bankruptcy or foreclosure and Mortgaged Properties held by REMIC I) is less than or equal to
50% of the Subordinate Component Balance for Loan Group II as of the current Distribution Date,

(c)           the mean aggregate Principal Balance as of the Distribution
Date in each of the immediately preceding six calendar months of the Group III Loans which were 60 or more days delinquent as of
such date (including Mortgage Loans in bankruptcy or foreclosure and Mortgaged Properties held by REMIC I) is less than or equal to
50% of the Subordinate Component Balance for Loan Group III as of the current Distribution Date,

(d)           the mean aggregate Principal Balance as of the Distribution
Date in each of the immediately preceding six calendar months of the Group IV Loans which were 60 or more days delinquent as of
such date (including Mortgage Loans in bankruptcy or foreclosure and Mortgaged Properties held by REMIC I) is less than or equal to
50% of the Subordinate Component Balance for Loan Group IV as of the current Distribution Date,

(e)           cumulative Realized Losses on the Group I Loans allocated to
the Class B Certificates, as a percentage of the Subordinate Component Balance for Loan Group I as of the Closing Date, are less
than or equal to, for any Distribution Date (1) before the sixth anniversary of the first Distribution Date, 30%, (2) on or after
the sixth anniversary but before the seventh anniversary of the first Distribution Date, 35%, (3) on or after the seventh
anniversary but before the eighth anniversary of the first Distribution Date, 40%, (4) on or after the eighth anniversary but
before the ninth anniversary of the first Distribution Date, 45%, and (5) on or after the ninth anniversary of the first
Distribution Date, 50%,

 

20

 

 

(f)            cumulative Realized Losses on the Group II Loans
allocated to the Class B Certificates, as a percentage of the Subordinate Component Balance for Loan Group II as of the Closing
Date, are less than or equal to, for any Distribution Date (1) before the sixth anniversary of the first Distribution Date, 30%,
(2) on or after the sixth anniversary but before the seventh anniversary of the first Distribution Date, 35%, (3) on or after the
seventh anniversary but before the eighth anniversary of the first Distribution Date, 40%, (4) on or after the eighth anniversary
but before the ninth anniversary of the first Distribution Date, 45%, and (5) on or after the ninth anniversary of the first
Distribution Date, 50%,

(g)           cumulative Realized Losses on the Group III Loans allocated
to the Class B Certificates, as a percentage of the Subordinate Component Balance for Loan Group III as of the Closing Date, are
less than or equal to, for any Distribution Date (1) before the sixth anniversary of the first Distribution Date, 30%, (2) on or
after the sixth anniversary but before the seventh anniversary of the first Distribution Date, 35%, (3) on or after the seventh
anniversary but before the eighth anniversary of the first Distribution Date, 40%, (4) on or after the eighth anniversary but
before the ninth anniversary of the first Distribution Date, 45%, and (5) on or after the ninth anniversary of the first
Distribution Date, 50%, and

(h)           cumulative Realized Losses on the Group IV Loans allocated
to the Class B Certificates, as a percentage of the Subordinate Component Balance for Loan Group IV as of the Closing Date, are
less than or equal to, for any Distribution Date (1) before the sixth anniversary of the first Distribution Date, 30%, (2) on or
after the sixth anniversary but before the seventh anniversary of the first Distribution Date, 35%, (3) on or after the seventh
anniversary but before the eighth anniversary of the first Distribution Date, 40%, (4) on or after the eighth anniversary but
before the ninth anniversary of the first Distribution Date, 45%, and (5) on or after the ninth anniversary of the first
Distribution Date, 50%,

in which case the Group I Senior Prepayment
Percentage, the Group II Senior Prepayment Percentage, the Group III Senior Prepayment Percentage and the Group IV Senior
Prepayment Percentage shall be calculated as follows: (1) for any such Distribution Date on or after the fifth anniversary but
before the sixth anniversary of the first Distribution Date, the Group I Senior Percentage, the Group II Senior Percentage, the
Group III Senior Percentage or the Group IV Senior Percentage, as applicable, for such Distribution Date plus 70% of the
Subordinate Percentage for the related Loan Group for such Distribution Date; (2) for any such Distribution Date on or after the
sixth anniversary but before the seventh anniversary of the first Distribution Date, the Group I Senior Percentage, the Group II
Senior Percentage, the Group III Senior Percentage or the Group IV Senior Percentage, as applicable, for such Distribution Date
plus 60% of the Subordinate Percentage for the related Loan Group for such Distribution Date; (3) for any such Distribution Date on
or after the seventh anniversary but before the eighth anniversary of the first Distribution Date, the Group I Senior Percentage,
the Group II Senior Percentage, the Group III Senior Percentage or the Group IV Senior Percentage, as applicable, for such
Distribution Date plus 40% of the Subordinate Percentage for the related Loan Group for such Distribution Date; (4) for any such
Distribution Date on or after the eighth anniversary but before the ninth anniversary of the first Distribution Date, the Group I
Senior Percentage, the Group II Senior Percentage, the Group III Senior Percentage or the Group IV Senior Percentage, as
applicable, for such Distribution Date plus 20% of the Subordinate Percentage for the related Loan Group for such Distribution
Date; and (5) for any such Distribution Date thereafter, the Group I Senior Percentage, the Group II Senior Percentage, the Group
III Senior Percentage or the Group IV Senior Percentage, as applicable, for such Distribution Date.

 

21

 

 

If on any Distribution Date the allocation to the Group I, Group II,
Group III or Group IV Certificates of Principal Prepayments in the percentage required would reduce the aggregate Class Principal
Balance of such Certificates below zero, the Group I Senior Prepayment Percentage, the Group II Senior Prepayment Percentage, the
Group III Senior Prepayment Percentage or the Group IV Senior Prepayment Percentage, as applicable, for such Distribution Date
shall be limited to the percentage necessary to reduce the aggregate Class Principal Balance of such Regular Interests to
zero.  Notwithstanding the foregoing, however, on each Distribution Date, the Class I-P Certificates shall receive the
applicable Class I-P Fraction of all principal payments, including, without limitation, Principal Prepayments, received in respect
of each Class I-P Mortgage Loan, and the Class III-P Certificates shall receive the applicable Class III-P Fraction of all
principal payments, including, without limitation, Principal Prepayments, received in respect of each Class III-P Mortgage
Loan.

Group I Senior Principal Distribution
Amount: For any Distribution Date, an amount equal to the sum of (a) the Group I Senior Percentage of the
Principal Payment Amount for Loan Group I (exclusive of the portion thereof attributable to principal distributions to the Class
I-P Certificates pursuant to clauses (a)(i) of the definition of “REMIC II Distribution Amount”), (b) the Group I
Senior Prepayment Percentage of the Principal Prepayment Amount for Loan Group I (exclusive of the portion thereof attributable to
principal distributions to the Class I-P Certificates pursuant to clauses (a)(i) of the definition of “REMIC II Distribution
Amount”) and (c) the Group I Senior Liquidation Amount.

Group I Subordinate Percentage: For any Distribution Date, the excess of 100% over the Group I Senior Percentage for such date.

Group I Subordinate Prepayment
Percentage: For any Distribution Date, the excess of 100% over the Group I Senior Prepayment Percentage
for such Distribution Date; provided, however, that if the Class Principal Balance of the Class I-A Certificates has been
reduced to zero, then the Group I Subordinate Prepayment Percentage shall equal 100%.

Group II Certificates: 
The Class II-A Certificates.

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

Group II Premium Rate Mortgage Loans: The Group II Loans having Pass-Through Rates greater than or equal to 6.500% per annum.

Group II Senior Liquidation Amount: For any Distribution Date, the sum of (A) the aggregate, for each Group II Loan which became a Liquidated Mortgage Loan
during the Prior Period, of the lesser of: (i) the Group II Senior Percentage of the Principal Balance of such Mortgage Loan and
(ii) the Group II Senior Prepayment Percentage of the Liquidation Principal with respect to such Mortgage Loan and (B) the Group II
Senior Prepayment Percentage of any Subsequent Recoveries for Loan Group II for such Distribution Date.

 

22

 

 

Group II Senior Percentage:
For any Distribution Date, the lesser of (i) 100% and (ii) the Class II-A Principal Balance divided by the aggregate Principal
Balance of the Group II Loans, in each case immediately before such Distribution Date.

Group II Senior Prepayment Percentage: See the definition of “Group I Senior Prepayment Percentage, Group II Senior Prepayment Percentage, Group III
Senior Prepayment Percentage or Group IV Senior Prepayment Percentage.”

Group II Senior Principal Distribution
Amount: For any Distribution Date, an amount equal to the sum of (a) the Group II Senior Percentage of
the Principal Payment Amount for Loan Group II, (b) the Group II Senior Prepayment Percentage of the Principal Prepayment Amount
for Loan Group II and (c) the Group II Senior Liquidation Amount.

Group II Subordinate Balance: For any date of determination, an amount equal to the then outstanding aggregate Principal Balance of the Group II Loans
reduced by the Class Principal Balance of the Class II-A Certificates.

Group II Subordinate Percentage: For any Distribution Date, the excess of 100% over the Group II Senior Percentage for such date.

Group II Subordinate Prepayment
Percentage: For any Distribution Date, the excess of 100% over the Group II Senior Prepayment Percentage
for such Distribution Date; provided, however, that if the Class Principal Balance of the Class II-A Certificates has been
reduced to zero, then the Group II Subordinate Prepayment Percentage shall equal 100%.

Group III Certificates:  The Class III-A and Class III-P Certificates.

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

Group III Premium Rate Mortgage Loans: The Group III Loans having Pass-Through Rates greater than or equal to 5.500% per annum.

Group III Senior Liquidation Amount: For any Distribution Date, the sum of (A) the aggregate, for each Group III Loan which became a Liquidated Mortgage Loan
during the Prior Period, of the lesser of: (i) the Group III Senior Percentage of the Principal Balance of such Mortgage Loan
(exclusive of the Class III-P Fraction thereof, with respect to any Class III-P Mortgage Loan) and (ii) the Group III Senior
Prepayment Percentage of the Liquidation Principal with respect to such Mortgage Loan and (B) the Group III Senior Prepayment
Percentage of any Subsequent Recoveries for Loan Group III for such Distribution Date.

Group III Senior Percentage:
For any Distribution Date, the lesser of (i) 100% and (ii) the aggregate Class Principal Balance of the Class III-A and Residual
Certificates divided by the aggregate Principal Balance of the Group III Loans (exclusive of the Class III-P Fraction thereof, with
respect to any Class III-P Mortgage Loan), in each case immediately before such Distribution Date.

 

23

 

 

Group III Senior Prepayment Percentage: See the definition of “Group I Senior Prepayment Percentage, Group II Senior Prepayment Percentage, Group III
Senior Prepayment Percentage or Group IV Senior Prepayment Percentage.”

Group III Senior Principal Distribution
Amount: For any Distribution Date, an amount equal to the sum of (a) the Group III Senior Percentage of
the Principal Payment Amount for Loan Group III (exclusive of the portion thereof attributable to principal distributions to the
Class III-P Certificates pursuant to clauses (c)(i) of the definition of “REMIC II Distribution Amount”), (b) the Group
III Senior Prepayment Percentage of the Principal Prepayment Amount for Loan Group III (exclusive of the portion thereof
attributable to principal distributions to the Class III-P Certificates pursuant to clauses (c)(i) of the definition of
“REMIC II Distribution Amount”) and (c) the Group III Senior Liquidation Amount.

Group III Subordinate Balance:  For any date of determination, an amount equal to the then outstanding aggregate Principal Balance of the Group III
Loans reduced by the aggregate Class Principal Balance of the Class III-A, Class III-P and Residual Certificates.

Group III Subordinate Percentage: For any Distribution Date, the excess of 100% over the Group III Senior Percentage for such date.

Group III Subordinate Prepayment
Percentage: For any Distribution Date, the excess of 100% over the Group III Senior Prepayment Percentage
for such Distribution Date; provided, however, that if the aggregate Class Principal Balance of the Class III-A and Residual
Certificates has been reduced to zero, then the Group III Subordinate Prepayment Percentage shall equal 100%.

Group IV Certificates: 
The Class IV-A Certificates.

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

Group IV Premium Rate Mortgage Loans: The Group IV Loans having Pass-Through Rates greater than or equal to 6.000% per annum.

Group IV Senior Liquidation Amount: For any Distribution Date, the sum of (A) the aggregate, for each Group IV Loan which became a Liquidated Mortgage Loan
during the Prior Period, of the lesser of: (i) the Group IV Senior Percentage of the Principal Balance of such Mortgage Loan and
(ii) the Group IV Senior Prepayment Percentage of the Liquidation Principal with respect to such Mortgage Loan and (B) the Group IV
Senior Prepayment Percentage of any Subsequent Recoveries for Loan Group IV for such Distribution Date.

Group IV Senior Percentage:
For any Distribution Date, the lesser of (i) 100% and (ii) the Class IV-A Principal Balance divided by the aggregate Principal
Balance of the Group IV Loans, in each case immediately before such Distribution Date.

 

24

 

 

Group IV Senior Prepayment Percentage: See the definition of “Group I Senior Prepayment Percentage, Group II Senior Prepayment Percentage, Group III
Senior Prepayment Percentage or Group IV Senior Prepayment Percentage.”

Group IV Senior Principal Distribution
Amount: For any Distribution Date, an amount equal to the sum of (a) the Group IV Senior Percentage of
the Principal Payment Amount for Loan Group IV, (b) the Group IV Senior Prepayment Percentage of the Principal Prepayment Amount
for Loan Group IV and (c) the Group IV Senior Liquidation Amount.

Group IV Subordinate Percentage: For any Distribution Date, the excess of 100% over the Group IV Senior Percentage for such date.

Group IV Subordinate Prepayment
Percentage: For any Distribution Date, the excess of 100% over the Group IV Senior Prepayment Percentage
for such Distribution Date; provided, however, that if the Class Principal Balance of the Class IV-A Certificates has been
reduced to zero, then the Group IV Subordinate Prepayment Percentage shall equal 100%.

Groups I and Group IV Subordinate
Balance: For any date of determination, an amount equal to the then outstanding aggregate Principal
Balance of the Group I and Group IV Loans reduced by the Class Principal Balance of the Class I-A, Class IV-A and Class I-P
Certificates.

Indirect DTC Participants:
Entities such as banks, brokers, dealers or trust companies, that clear through or maintain a custodial relationship with a DTC
Participant, either directly or indirectly.

Initial Custodial Agreement:
The Custodial Agreement, dated the date hereof, among the Trustee, the Master Servicer and the Initial Custodian.

Initial Custodian: 
Washington Mutual Bank fsb, which has been designated by the Company to be appointed by the Trustee to act as Custodian, and whose
appointment has been approved by the Master Servicer.

Insurance Proceeds: Amounts
paid or payable by the insurer under any Primary Insurance Policy or any other insurance policy (including any replacement policy
permitted under this Agreement) covering any Mortgage Loan or Mortgaged Property, including, without limitation, any hazard
insurance policy required pursuant to Section 3.07, any title insurance policy required pursuant to Section 2.08 and any FHA
insurance policy or VA guaranty.

Interest Distribution Amount: For any Distribution Date, for any Class of REMIC I Regular Interests or Certificates and for the Class R-1 Residual
Interest, the amount of interest accrued during the Prior Period, at the related Certificate Interest Rate for such Class for such
Distribution Date, on the respective Class Principal Balance or Class Notional Amount immediately before such Distribution Date,
reduced by Uncompensated Interest Shortfall and the interest portion of Realized Losses allocated to such Class on such
Distribution Date pursuant to the definitions of “Uncompensated Interest Shortfall” and “Realized Loss,”
respectively.  The computation of interest accrued shall be made on the basis of a 360-day year of twelve 30-day months. 
The Interest Distribution Amounts for the Class P-M Regular Interests and the Class P Certificates shall equal zero.

 

25

 

 

Interest Transfer Amount: On
any Distribution Date for an Undercollateralized Group, an amount equal to one month’s interest on the applicable Principal
Transfer Amount at 6.000% per annum if the Undercollateralized Group is Loan Group I or Loan Group IV, at 6.500% per annum if the
Undercollateralized Group is Loan Group II and at 5.500% per annum if the Undercollateralized Group is Loan Group III, plus any
interest accrued on the Senior Certificates related to such Undercollateralized Group remaining unpaid from prior Distribution
Dates.

Investment Account: The
commingled account (which shall be commingled only with investment accounts related to series of pass-through certificates with a
class of certificates which has a rating equal to the highest of the Ratings of the Certificates) maintained by the Master Servicer
in the trust department of the Investment Depository pursuant to Section 3.03 and which bears a designation acceptable to the
Rating Agencies.

Investment Depository:
JPMorgan Chase Bank, or another bank or trust company designated from time to time by the Master Servicer. The Investment
Depository shall at all times be an Eligible Institution.

Junior Subordinate Certificates: The Class B-4, Class B-5 and Class B-6 Certificates.

Last Scheduled Distribution Date: With respect to any Class of Certificates, the Final Maturity Date for such Class; provided, however,
that with respect to the Class III-A, Class III-P and Class IV-A Certificates, the “Last Scheduled Distribution Date”
shall be the Distribution Date in October 2019.

Lender: An institution from
which the Company purchased any Mortgage Loans pursuant to a Selling and Servicing Contract.

Liquidated Mortgage Loan: A
Mortgage Loan (other than a Mortgage Loan with respect to which a Payoff has been made) for which the Master Servicer or the
applicable Servicer has determined in accordance with its customary servicing practices that it has received all amounts which it
expects to recover from or on account of such Mortgage Loan, whether from Insurance Proceeds, Liquidation Proceeds or otherwise.
For purposes of this definition, acquisition of a Mortgaged Property by the Trust shall not constitute final liquidation of the
related Mortgage Loan.

Liquidation Principal: The
principal portion of Liquidation Proceeds received with respect to each Mortgage Loan (exclusive of the portion thereof
attributable to distributions to the Class P Certificates pursuant to clauses (a)(i) and (c)(i) of the definition of “REMIC
II Distribution Amount”) which became a Liquidated Mortgage Loan (but not in excess of the principal balance thereof) during
the Prior Period.

Liquidation Proceeds:
Amounts after deduction of amounts reimbursable under Section 3.05(a)(i) and (ii) received and retained in connection with the
liquidation of defaulted Mortgage Loans, whether through foreclosure or otherwise, other than any Subsequent Recoveries.

Loan Group: Loan Group I,
Loan Group II, Loan Group III or Loan Group IV, as applicable.

 

26

 

 

Loan Group I: The group of
Mortgage Loans comprised of the Group I Loans.

Loan Group II: The group of
Mortgage Loans comprised of the Group II Loans.

Loan Group III: The group of
Mortgage Loans comprised of the Group III Loans.

Loan Group IV: The group of
Mortgage Loans comprised of the Group IV Loans.

Loan-to-Value Ratio: The
original principal amount of a Mortgage Loan divided by the Original Value; provided, however, that references to
“current Loan-to-Value Ratio” or “Loan-to-Value Ratio as of the Cut-Off Date” in Section 2.08 shall be
deemed to mean the then current Principal Balance of a Mortgage Loan divided by the Original Value.

Lowest Class B Owner: An
owner unaffiliated with the Company or the Master Servicer of (i) a 100% interest in the Class of Class B Certificates with the
lowest priority or (ii) a 100% interest in a class of securities representing such interest in such Class specified in clause (i)
above.

Master Servicer:  The
Company, or any successor thereto appointed as provided pursuant to Section 7.02, acting to service and administer the Mortgage
Loans pursuant to Section 3.01.

Master Servicer Business Day: Any day other than a Saturday, a Sunday, or a day on which banking institutions in Chicago, Illinois are authorized or
obligated by law or executive order to be closed.

Master Servicing Fee: The
fee charged by the Master Servicer for supervising the mortgage servicing and advancing certain expenses, equal to a per annum rate
set forth for each Mortgage Loan in Exhibit D on the outstanding Principal Balance of such Mortgage Loan, payable monthly from the
Certificate Account, the Investment Account or the Custodial Account for P&I.

MERS: Mortgage Electronic
Registration Systems, Inc., a Delaware corporation, or any successor thereto.

MERS Loan: Any Mortgage Loan
registered on the MERS® System for which MERS appears as the mortgagee of record on the Mortgage or on an assignment
thereof.

MERS® System: The system
of electronically recording transfers of Mortgages maintained by MERS.

MIN: The Mortgage
Identification Number for a MERS Loan.

MOM Loan: A Mortgage Loan
that was registered on the MERS® System at the time of origination thereof and for which MERS appears as the mortgagee of
record on the Mortgage.

Monthly P&I Advance: An
advance of funds by the Master Servicer pursuant to Section 4.02 or a Servicer pursuant to its Selling and Servicing Contract to
cover delinquent principal and interest installments.

 

27

 

 

Monthly Payment: The
scheduled payment of principal and interest on a Mortgage Loan (including any amounts due from a Buydown Fund, if any) which is due
on the related Due Date for such Mortgage Loan.

Moody’s: 
Moody’s Investors Service, Inc., provided that at any time it be a Rating Agency.

Mortgage: The mortgage, deed
of trust or other instrument securing a Mortgage Note.

Mortgage File: The following
documents or instruments with respect to each Mortgage Loan transferred and assigned by the Company pursuant to Section 2.04, (X)
with respect to each Mortgage Loan that is not a Cooperative Loan:

(i)                  The original Mortgage Note endorsed (A) in blank, without recourse, or (B) to “Citibank, N.A., as Trustee, without
recourse” or to “WaMu Mortgage Pass-Through Certificates Series 2004-CB3 Trust, without recourse” and all
intervening endorsements evidencing a complete chain of endorsements from the originator to the Trustee or the Trust, as
applicable, or, in the event of any Destroyed Mortgage Note, a copy or a duplicate original of the Mortgage Note (or portion
thereof, as applicable), together with an original lost note affidavit from the originator of the Mortgage Loan or the Company (or
any affiliate of the Company from which the Company acquired the Mortgage Loan), as applicable, stating that the original Mortgage
Note (or portion thereof, as applicable) was lost, misplaced or destroyed, together with a copy of the Mortgage Note (or portion
thereof, as applicable); provided, however, that in the event the Company acquired the Mortgage Loan from an affiliate of
the Company, then the Mortgage Note (or portion thereof, as applicable) need not be endorsed in blank or to Citibank, N.A. or the
Trust as provided above (but, if not so endorsed, shall be made payable to, or endorsed by the mortgagee named therein to, such
affiliate of the Company);

(ii)                The Buydown Agreement, if applicable;

(iii)               A Mortgage that is either

(1)           (x) the original recorded Mortgage with evidence of
recording thereon for the jurisdiction in which the Mortgaged Property is located (which original recorded Mortgage, in the case of
a MOM Loan, shall set forth the MIN and shall indicate that the Mortgage Loan is a MOM Loan), (y) unless the Mortgage Loan is a
MERS Loan, an original Mortgage assignment thereof duly executed and acknowledged in recordable form (A) in blank or (B) to
“Citibank, N.A., as Trustee,” or to “WaMu Mortgage Pass-Through Certificates Series 2004-CB3 Trust,” and
(z) unless the Mortgage Loan is a MOM Loan, recorded originals of all intervening assignments evidencing a complete chain of
assignment, from the originator to the name holder or the payee endorsing the related Mortgage Note (or, in the case of a MERS Loan
other than a MOM Loan, from the originator to MERS); or

 

28

 

 

(2)           (x) a copy (which may be in electronic form) of the Mortgage
(which Mortgage, in the case of a MOM Loan, shall set forth the MIN and shall indicate that the Mortgage Loan is a MOM Loan) which
represents a true and correct reproduction of the original Mortgage and which has either been certified (i) on the face thereof by
the public recording office in the appropriate jurisdiction in which the Mortgaged Property is located, or (ii) by the originator,
the related Lender or the escrow or title company which provided closing services in connection with such Mortgage Loan as a true
and correct copy the original of which has been sent for recordation, (y) unless the Mortgage Loan is a MERS Loan, an original
Mortgage assignment thereof duly executed and acknowledged in recordable form (A) in blank or (B) to “Citibank, N.A., as
Trustee,” or to “WaMu Mortgage Pass-Through Certificates Series 2004-CB3 Trust,” and (z) unless the Mortgage Loan
is a MOM Loan, true and correct copies, certified by the applicable county recorder or by the originator or Lender as described
above, of all intervening assignments evidencing a complete chain of assignment from the originator to the name holder or the payee
endorsing the related Mortgage Note (or, in the case of a MERS Loan other than a MOM Loan, from the originator to MERS);

provided, however, that in the event the Company acquired the Mortgage
Loan from an affiliate of the Company, then the Mortgage File need not include a Mortgage assignment executed in blank or to
Citibank, N.A. or the Trust as provided in clause (X)(iii)(1)(y) or (X)(iii)(2)(y) above, as applicable (but the Mortgage File
shall, unless the Mortgage Loan was originated by such affiliate of the Company, include an intervening Mortgage assignment to such
affiliate as provided in clause (X)(iii)(1)(z) or (X)(iii)(2)(z) above, as applicable); and

(iv)              For
any Mortgage Loan that has been modified or amended, the original instrument or instruments effecting such modification or
amendment;

and (Y) with respect to each Cooperative Loan:

(i)                  the original Mortgage Note endorsed (A) in blank, without recourse, or (B) to “Citibank, N.A., as Trustee, without
recourse” or to “WaMu Mortgage Pass-Through Certificates Series 2004-CB3 Trust, without recourse” and all
intervening endorsements evidencing a complete chain of endorsements, from the originator to the Trustee or the Trust, as
applicable, or, in the event of any Destroyed Mortgage Note, a copy or a duplicate original of the Mortgage Note (or portion
thereof, as applicable), together with an original lost note affidavit from the originator of the Cooperative Loan or the Company
(or any affiliate of the Company from which the Company acquired the Mortgage Loan), as applicable, stating that the original
Mortgage Note (or portion thereof, as applicable) was lost, misplaced or destroyed, together with a copy of the Mortgage Note (or
portion thereof, as applicable); provided, however, that in the event the Company acquired the Cooperative Loan from an
affiliate of the Company, then the Mortgage Note need not be endorsed in blank or to Citibank, N.A. or the Trust as provided above
(but, if not so endorsed, shall be made payable to, or endorsed by the originator or successor lender named therein to, such
affiliate of the Company);

 

29

 

 

(ii)                A counterpart of the Cooperative Lease and the Assignment of Proprietary Lease to the originator of the Cooperative
Loan;

(iii)               The related Cooperative Stock Certificate, representing the related Cooperative Stock pledged with respect to such Cooperative
Loan, together with an undated stock power (or other similar instrument) executed in blank;

(iv)              The
Recognition Agreement;

(v)                The Security Agreement;

(vi)              Copies of the original UCC financing statement, and any continuation statements, filed by the originator of such Cooperative
Loan as secured party, each with evidence of recording thereof, evidencing the interest of the originator under the Security
Agreement and the Assignment of Proprietary Lease;

(vii)             Copies of
the filed UCC assignments or amendments of the security interest referenced in clause (vi) above showing an unbroken chain of title
from the originator to the Trust, each with evidence of recording thereof, evidencing the interest of the assignee under the
Security Agreement and the Assignment of Proprietary Lease;

(viii)           An executed assignment
of the interest of the originator in the Security Agreement, the Assignment of Proprietary Lease and the Recognition Agreement,
showing an unbroken chain of title from the originator to the Trust; and

(ix)              For
any Cooperative Loan that has been modified or amended, the original instrument or instruments effecting such modification or
amendment;

provided, however, that in the event the
Company acquired the Cooperative Loan from an affiliate of the Company, then the Mortgage File need not include (1) a UCC
assignment or amendment of the security interest referenced in clause (Y)(vi) above to the Trust as provided in clause (Y)(vii)
above (but the Mortgage File shall, unless the Cooperative Loan was originated by such affiliate of the Company, include a UCC
assignment or amendment of such security interest to such affiliate) or (2) an assignment of the interest of the originator in the
Security Agreement, the Assignment of Proprietary Lease and the Recognition Agreement to the Trust as provided in clause (Y)(viii)
above (but the Mortgage File shall, unless the Cooperative Loan was originated by such affiliate of the Company, include an
assignment of such interest to such affiliate).

Mortgage Interest Rate: For
any Mortgage Loan, the per annum rate at which interest accrues on such Mortgage Loan pursuant to the terms of the related Mortgage
Note.

Mortgage Loan Schedule: The
schedule, as amended from time to time, of Mortgage Loans attached hereto as Exhibit D, which shall set forth as to each Mortgage
Loan the following, among other things:

(i)                  its loan number,

 

30

 

 

(ii)                the address of the Mortgaged Property,

(iii)               the name of the Mortgagor,

(iv)              the
Original Value of the property subject to the Mortgage,

(v)                the Principal Balance as of the Cut-Off Date,

(vi)              the
Mortgage Interest Rate, as of the Cut-Off Date, borne by the Mortgage Note,

(vii)             whether a
Primary Insurance Policy is in effect as of the Cut-Off Date, and, if so, whether such Primary Insurance Policy is a Special
Primary Insurance Policy,

(viii)           the maturity of the
Mortgage Note,

(ix)              the
Servicing Fee and the Master Servicing Fee,

(x)                its Loan Group, and

(xi)              whether it imposes penalties for early prepayments.

Mortgage Loans: The mortgage
loans and cooperative loans (if any) listed on the Mortgage Loan Schedule and transferred and assigned to the Trust pursuant
hereto. With respect to each Mortgage Loan that is a Cooperative Loan, “Mortgage Loan” shall include, but not be
limited to, the Mortgage Note, Security Agreement, Assignment of Proprietary Lease, Recognition Agreement, Cooperative Stock
Certificate and Cooperative Lease and, with respect to each Mortgage Loan other than a Cooperative Loan, “Mortgage
Loan” shall include, but not be limited to the Mortgage Note and the related Mortgage.

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

Mortgage Pool: All of the
Mortgage Loans.

Mortgage Pool Assets: (i)
The Mortgage Loans (including all Substitute Mortgage Loans) identified on the Mortgage Loan Schedule, and all rights pertaining
thereto, including the related Mortgage Notes, Mortgages, Cooperative Stock Certificates, Cooperative Leases, Security Agreements,
Assignments of Proprietary Lease, and Recognition Agreements, and all payments and distributions with respect to the Mortgage Loans
payable on and after the Cut-Off Date; (ii) the Certificate Account, the Investment Account, and all money, instruments,
investment property, and other property credited thereto, carried therein, or deposited therein (except amounts constituting the
Master Servicing Fee or the Servicing Fee); (iii) the Custodial Accounts for P&I, the Custodial Accounts for Reserves, any
Buydown Fund Account (to the extent of the amounts on deposit or other property therein attributable to the Mortgage Loans), and
all money, instruments, investment property, and other property credited thereto, carried therein, or deposited therein (except
amounts constituting the Master Servicing Fee or the Servicing Fee); (iv) all property that secured a Mortgage Loan and that has
been acquired by foreclosure or deed in lieu of foreclosure or, in the case of a Cooperative Loan, a similar form of conversion,
after the Cut-Off Date; and (v) each FHA insurance policy, Primary Insurance Policy, VA guaranty, and other insurance policy
related to any Mortgage Loan, and all amounts paid or payable thereunder and all proceeds thereof.

 

31

 

 

Mortgaged Property: With
respect to any Mortgage Loan, other than a Cooperative Loan, the real property, together with improvements thereto, and, with
respect to any Cooperative Loan, the related Cooperative Stock and Cooperative Lease, securing the indebtedness of the Mortgagor
under the related Mortgage Loan.  “Mortgaged Property” shall also refer to property which once secured the
indebtedness of a Mortgagor under the related Mortgage Loan but which was acquired by the Trust upon foreclosure or other
liquidation of such Mortgage Loan.

Mortgagor: The obligor on a
Mortgage Note.

Nonrecoverable Advance: With
respect to any Mortgage Loan, any advance which the Master Servicer shall determine to be a Nonrecoverable Advance pursuant to
Section 4.03 and which was, or is proposed to be, made by (i) the Master Servicer or (ii) a Servicer pursuant to its Selling and
Servicing Contract.

Non-U.S. Person: A Person
that is not a U.S. Person.

Notice Addresses: (a) In the
case of the Company, 75 North Fairway Drive, Vernon Hills, Illinois 60061, Attention: Master Servicing Department, with a copy to:
Washington Mutual Legal Department, 1201 Third Avenue, WMT 1706, Seattle, WA 98101, Attention: WMMSC, or such other address as may
hereafter be furnished to the Trustee in writing by the Company, (b) in the case of the Trustee, at its Corporate Trust Office, or
such other address as may hereafter be furnished to the Master Servicer in writing by the Trustee, (c) in the case of the
Delaware Trustee, 1314 King Street, Wilmington, DE  19801, or such other address as may hereafter be furnished to the Master
Servicer in writing by the Delaware Trustee, (d) in the case of the Trust, c/o Citibank, N.A., at the Corporate Trust Office,
or such other address as may hereafter be furnished to the Master Servicer in writing by the Trustee, (e) in the case of the
Certificate Registrar, at its Corporate Trust Office, or such other address as may hereafter be furnished to the Trustee in writing
by the Certificate Registrar, (f) in the case of S&P, 55 Water Street, 41st Floor, New York, New York 10041-0003,
Attention:  Frank Raiter, or such other address as may hereafter be furnished to the Trustee and Master Servicer in writing by
S&P and (g) in the case of Moody’s, 99 Church Street, New York, New York 10007, Attention:  Monitoring, or such
other address as may hereafter be furnished to the Trustee and Master Servicer in writing by Moody’s.

OTS: The Office of Thrift
Supervision, or any successor thereto.

Officer’s Certificate:
A certificate signed by the Chairman of the Board, the President, a Vice President, or the Treasurer of the Master Servicer and
delivered to the Trustee or the Delaware Trustee, as applicable.

Opinion of Counsel: A
written opinion of counsel, who shall be reasonably acceptable to the Trustee or the Delaware Trustee, as applicable, and who may
be counsel (including in-house counsel) for the Company or the Master Servicer.

 

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Original Trust Agreement:
The Trust Agreement, dated as of August 1, 2004, between the Company and the Delaware Trustee, providing for the creation of the
Trust.

Original Value: With respect
to any Mortgage Loan other than a Mortgage Loan originated for the purpose of refinancing an existing mortgage debt, the lesser of
(a) the Appraised Value (if any) of the Mortgaged Property at the time the Mortgage Loan was originated or (b) the purchase price
paid for the Mortgaged Property by the Mortgagor. With respect to a Mortgage Loan originated for the purpose of refinancing
existing mortgage debt, the Original Value shall be equal to the Appraised Value of the Mortgaged Property.

Overcollateralized Group:
Any of Loan Group I, Loan Group II, Loan Group III or Loan Group IV, if on any Distribution Date such Loan Group is not an
Undercollateralized Group and one or more of the other Loan Groups is an Undercollateralized Group.

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

Pass-Through Entity: 
Any regulated investment company, real estate investment trust, common trust fund, partnership, trust or estate, and any
organization to which Section 1381 of the Code applies.

Pass-Through Rate: For each
Mortgage Loan, a per annum rate equal to the Mortgage Interest Rate for such Mortgage Loan less the per annum percentage rates
related to each of (i) the Servicing Fee for such Mortgage Loan, (ii) the Master Servicing Fee for such Mortgage Loan and (iii) if
such Mortgage Loan was covered by a Special Primary Insurance Policy on the Closing Date (even if no longer so covered), the
applicable Special Primary Insurance Premium. For each Mortgage Loan, any calculation of monthly interest at such rate shall be
based upon annual interest at such rate (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid Principal
Balance of such Mortgage Loan divided by twelve, and any calculation of interest at such rate by reason of a Payoff shall be based
upon annual interest at such rate on the outstanding Principal Balance of such Mortgage Loan multiplied by a fraction, the
numerator of which is the number of days elapsed from the Due Date of the last scheduled payment of principal and interest to, but
not including, the date of such Payoff, and the denominator of which is (a) for Payoffs received on a Due Date, 360, and (b) for
all other Payoffs, 365.

Paying Agent: Any paying
agent appointed by the Trustee pursuant to Section 8.12.

Payoff: Any Mortgagor
payment of principal on a Mortgage Loan equal to the entire outstanding Principal Balance of such Mortgage Loan, if received in
advance of the last scheduled Due Date for such Mortgage Loan and accompanied by an amount of interest equal to accrued unpaid
interest on the Mortgage Loan to the date of such payment-in-full.  (Prepayment penalties are not payments of principal and
hence Payoffs do not include prepayment penalties.)

Payoff Earnings: For any
Distribution Date with respect to each Mortgage Loan on which a Payoff was received by the Master Servicer during the Payoff
Period, the aggregate of the interest earned by the Master Servicer from investment of each such Payoff from the date of receipt of
such Payoff until the Business Day immediately preceding the related Distribution Date (net of investment losses).

 

33

 

 

Payoff Interest: For any
Distribution Date with respect to a Mortgage Loan for which a Payoff was received on or after the first calendar day of the month
of such Distribution Date and before the 15th calendar day of such month, an amount of interest thereon at the applicable
Pass-Through Rate from the first day of the month of distribution through the day of receipt thereof; to the extent (together with
Payoff Earnings and the aggregate Master Servicing Fee) not required to be distributed as Compensating Interest on such
Distribution Date, Payoff Interest shall be payable to the Master Servicer as additional servicing compensation.

Payoff Period: For the first
Distribution Date, the period from the Cut-Off Date through August 14, 2004, inclusive; and for any Distribution Date thereafter,
the period from the 15th day of the Prior Period through the 14th day of the month of such Distribution Date, inclusive.

Percentage Interest: 
(a)  With respect to the right of each Certificate of a particular Class in the distributions allocated to such Class,
“Percentage Interest” shall mean the percentage equal to:

(i)                  with respect to any Certificate (other than the Residual and Class X Certificates), its Certificate Principal Balance
divided by the applicable Class Principal Balance;

(ii)                with respect to any Class X Certificate, the portion of the respective Class Notional Amount evidenced by such Certificate
divided by the respective Class Notional Amount; and

(iii)               with respect to any Residual Certificate, the percentage set forth on the face of such Certificate.

(b)           With
respect to the rights of each Certificate in connection with Sections 5.09, 7.01, 8.01(c), 8.02, 8.07, 10.01 and 10.03,
“Percentage Interest” shall mean the percentage equal to:

(i)                  with respect to any Certificate (other than the Class C-X and Residual Certificates), the product of (x) ninety-nine
percent (99%) and (y) its Certificate Principal Balance divided by the Aggregate Certificate Principal Balance of the Certificates;
provided, however, that the percentage in clause (x) above shall be increased by one percent (1%) upon the retirement of the
Class C-X Certificates;

(ii)                with respect to the Class C-X Certificate, one percent (1%) of such Certificate’s Percentage Interest as calculated
by paragraph (a)(ii) of this definition; and

(iii)               with respect to any Residual Certificate, zero.

Permitted Transferee: With
respect to the holding or ownership of any Residual Certificate, any Person other than (i) the United States, a State or any
political subdivision thereof, or any agency or instrumentality of any of the foregoing, (ii) a foreign government, International
Organization or any agency or instrumentality of either of the foregoing, (iii) an organization (except certain farmers’
cooperatives described in Code Section 521) which is exempt from the taxes imposed by Chapter 1 of the Code (unless such
organization is subject to the tax imposed by Section 511 of the Code on unrelated business taxable income), (iv) rural electric
and telephone cooperatives described in Code Section 1381(a)(2)(C), (v) any “electing large partnership” as defined in
Section 775(a) of the Code, (vi) any Person from whom the Trustee has not received an affidavit to the effect that it is not a
“disqualified organization” within the meaning of Section 860E(e)(5) of the Code, and (vii) any other Person so
designated by the Company based upon an Opinion of Counsel that the transfer of an Ownership Interest in a Residual Certificate to
such Person may cause REMIC I or REMIC II to fail to qualify as a REMIC at any time that the Certificates are outstanding. The
terms “United States,” “State” and “International Organization” shall have the meanings set
forth in Code Section 7701 or successor provisions. A corporation shall not be treated as an instrumentality of the United States
or of any State or political subdivision thereof if all of its activities are subject to tax, and, with the exception of the
Freddie Mac, a majority of its board of directors is not selected by such governmental unit.

 

34

 

 

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

Prepaid Monthly Payment: Any
Monthly Payment received prior to its scheduled Due Date, which is intended to be applied to a Mortgage Loan on its scheduled Due
Date and held in the related Custodial Account for P&I until the Withdrawal Date following its scheduled Due Date.

Primary Insurance Policy: A
policy of mortgage guaranty insurance, if any, on an individual Mortgage Loan or on pools of mortgage loans that include an
individual Mortgage Loan, providing coverage as required by Section 2.08(xi) (including any Special Primary Insurance
Policy).

Principal Balance: Except as
used in Sections 2.07, 3.09 and 9.01 and for purposes of the definition of Purchase Price, at the time of any determination, the
principal balance of a Mortgage Loan remaining to be paid at the close of business on the Cut‐Off Date, after application of
all scheduled principal payments due on or before the Cut‐Off Date, whether or not received, reduced by all amounts
distributed or (except when such determination occurs earlier in the month than the Distribution Date) to be distributed to
Certificateholders through the Distribution Date in the month of determination that are reported as allocable to principal of such
Mortgage Loan.

For purposes of the definition of Purchase Price and as used in
Sections 2.07, 3.09 and 9.01, at the time of any determination, the principal balance of a Mortgage Loan remaining to be paid at
the close of business on the Cut-Off Date, after deduction of all scheduled principal payments due on or before the Cut-Off Date,
whether or not received, reduced by all amounts distributed or to be distributed to Certificateholders through the Distribution
Date in the month of determination that are reported as allocable to principal of such Mortgage Loan.

 

35

 

 

In the case of a Substitute Mortgage Loan, “Principal
Balance” shall mean, at the time of any determination, the principal balance of such Substitute Mortgage Loan transferred to
the Trust, on the date of substitution, reduced by all amounts distributed or to be distributed to Certificateholders through the
Distribution Date in the month of determination that are reported as allocable to principal of such Substitute Mortgage
Loan.

The Principal Balance of a Mortgage Loan (including a Substitute
Mortgage Loan) shall not be adjusted solely by reason of any bankruptcy or similar proceeding or any moratorium or similar waiver
or grace period. Whenever a Realized Loss has been incurred with respect to a Mortgage Loan during a calendar month, the Principal
Balance of such Mortgage Loan shall be reduced by the amount of such Realized Loss as of the Due Date next following the end of
such calendar month.

Principal Payment: Any
payment of principal on a Mortgage Loan other than a Principal Prepayment.

Principal Payment Amount:
For any Distribution Date and for any Loan Group, the sum with respect to the Mortgage Loans in such Loan Group of (i) the
scheduled principal payments on the Mortgage Loans due on the related Due Date, (ii) the principal portion of proceeds received
with respect to any Mortgage Loan which was purchased or repurchased pursuant to a Purchase Obligation or as permitted by this
Agreement during the Prior Period and (iii) any other unscheduled payments of principal which were received with respect to any
Mortgage Loan during the Prior Period, other than Payoffs, Curtailments, Liquidation Principal and Subsequent
Recoveries.

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

Principal Prepayment Amount:
For any Distribution Date and for any Loan Group, the sum with respect to the Mortgage Loans in such Loan Group of (i) Curtailments
received during the Prior Period from such Mortgage Loans and (ii) Payoffs received during the Payoff Period from such Mortgage
Loans.

Principal Transfer Amount:
For any Distribution Date for each Undercollateralized Group, the excess, if any, of the aggregate Class Principal Balance of the
Class A Certificates related to such Undercollateralized Group over the aggregate Principal Balance of the Mortgage Loans in such
Loan Group (less the applicable Class P Fraction thereof with respect to any Class P Mortgage Loans in such Loan Group), in each
case immediately prior to such Distribution Date.

Prior Period: With respect
to any Distribution Date, the calendar month immediately preceding such Distribution Date.

Prospectus:  The
Prospectus, dated February 10, 2004, and the Prospectus Supplement, dated August 20, 2004, of the Company.

Purchase Obligation: An
obligation of the Company to repurchase Mortgage Loans under the circumstances and in the manner provided in Section 2.07 or
Section 2.08.

 

36

 

 

Purchase Price: With respect
to any Mortgage Loan to be purchased pursuant to a Purchase Obligation or pursuant to Section 3.01, an amount equal to the sum of
(i) the Principal Balance thereof, (ii) unpaid accrued interest thereon, if any, during the calendar month in which the date of
purchase occurs to the last day of such month at a rate equal to the applicable Pass-Through Rate and (iii) with respect to any
Mortgage Loan to be purchased pursuant to Section 2.08, any costs and damages incurred by the Trust in connection with any
violation by such Mortgage Loan of any predatory and abusive lending laws, to the extent such costs and damages result from a
breach of the representation and warranty made by the Company pursuant to clause (viii) of Section 2.08; provided,
however, that to the extent that such costs and damages constitute a set-off against the principal balance of the Mortgage
Loan, such costs and damages will not be paid pursuant to this clause (iii), and the amount paid pursuant to clause (i) above will
be calculated without regard to such set-off; provided, further, that no Mortgage Loan shall be purchased or
required to be purchased pursuant to Section 2.08, or more than two years after the Closing Date under Section 2.07, unless (a) the
Mortgage Loan to be purchased is in default, or default is in the judgment of the Company reasonably imminent, or (b) the Company,
at its expense, delivers to the Trustee an Opinion of Counsel addressed to the Trust and the Trustee to the effect that the
purchase of such Mortgage Loan will not give rise to a tax on a prohibited transaction, as defined in Section 860F(a) of the
Code.

Qualified Insurer: A
mortgage guaranty insurance company duly qualified as such under the laws of the states in which the Mortgaged Properties are
located if such qualification is necessary to issue the applicable insurance policy or bond, duly authorized and licensed in such
states to transact the applicable insurance business and to write the insurance provided by the Primary Insurance Policies and
approved as an insurer by the Master Servicer. A Qualified Insurer must have the rating required by the Rating Agencies.

Rating Agency: Initially,
each of S&P and Moody’s and thereafter, each nationally recognized statistical rating organization that has rated the
Certificates at the request of the Company, or their respective successors in interest.

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

Realized Loss: For any
Distribution Date, with respect to any Mortgage Loan which became a Liquidated Mortgage Loan during the related Prior Period, the
sum of (i) the principal balance of such Mortgage Loan remaining outstanding and the principal portion of Nonrecoverable Advances
actually reimbursed with respect to such Mortgage Loan (the principal portion of such Realized Loss), and (ii) the accrued interest
on such Mortgage Loan remaining unpaid and the interest portion of Nonrecoverable Advances actually reimbursed with respect to such
Mortgage Loan (the interest portion of such Realized Loss); provided, however, that for purposes of allocating
Realized Losses to the Certificates pursuant to this definition of “Realized Loss,” the aggregate principal portion of
Realized Losses for any Distribution Date for any Loan Group shall be reduced by the Cumulative Carry-Forward Subsequent Recoveries
Amount for such Distribution Date for such Loan Group. For any Distribution Date, with respect to any Mortgage Loan which is not a
Liquidated Mortgage Loan, the amount of the Bankruptcy Loss incurred with respect to such Mortgage Loan as of the related Due
Date.

 

37

 

 

Realized Losses on Group I, Group II, Group III and Group IV Loans
shall be allocated to the REMIC I Regular Interests as follows: (1) The interest portion of Realized Losses on Group I Loans
and Group IV Loans, if any, shall be allocated, first, to the Class C-X-M Regular Interest in an amount equal to the amount of such
losses allocated to the Class C-X Certificates pursuant to the third paragraph of this definition of “Realized Loss,”
in reduction of the amount of interest accrued but unpaid thereon, and, second, the remainder of such losses shall be allocated
between the Class C-Y-1 and Class C-Z-1 Regular Interests pro rata according to the amount of interest accrued but unpaid thereon,
in reduction thereof; (2) the interest portion of Realized Losses on Group II Loans, if any, shall be allocated, first, to the
Class C-X-M Regular Interest in an amount equal to the amount of such losses allocated to the Class C-X Certificates pursuant to
the third paragraph of this definition of “Realized Loss,” in reduction of the amount of interest accrued but unpaid
thereon, and, second, the remainder of such losses shall be allocated between the Class C-Y-2 and Class C-Z-2 Regular Interests pro
rata according to the amount of interest accrued but unpaid thereon, in reduction thereof; and (3) the interest portion of Realized
Losses on Group III Loans, if any, shall be allocated, first, to the Class C-X-M Regular Interest in an amount equal to the amount
of such losses allocated to the Class C-X Certificates pursuant to the third paragraph of this definition of “Realized
Loss,” in reduction of the amount of interest accrued but unpaid thereon, and, second, the remainder of such losses shall be
allocated between the Class C-Y-3 and Class C-Z-3 Regular Interests pro rata according to the amount of interest accrued but unpaid
thereon, in reduction thereof. Any interest portion of such Realized Losses in excess of the amount allocated pursuant to the
preceding sentence shall be treated as a principal portion of Realized Losses not attributable to any specific Mortgage Loan in
such Loan Group and allocated pursuant to the succeeding sentences.  The applicable Class P Fraction of any principal portion
of Realized Losses attributable to a Class P Mortgage Loan shall be alloated to the related Class P-M Regular Interst in reduction
of the Class Principal Balance thereof. The remainder of the principal portion of Realized Losses with respect to Loan Group I,
Loan Group II, Loan Group III and Loan Group IV shall be allocated to the REMIC I Regular Interests as follows: (1) The principal
portion of Realized Losses on Group I and Group IV Loans shall be allocated, first, to the Class C-Y-1 Regular Interest to the
extent of the Class C-Y-1 Principal Reduction Amount in reduction of the Class Principal Balance of such Regular Interest and,
second, the remainder, if any, of such principal portion of such Realized Losses shall be allocated to the Class C-Z-1 Regular
Interest in reduction of the Class Principal Balance thereof; (2) the principal portion of Realized Losses on Group II Loans shall
be allocated, first, to the Class C-Y-2 Regular Interest to the extent of the Class C-Y-2 Principal Reduction Amount in reduction
of the Class Principal Balance of such Regular Interest and, second, the remainder, if any, of such principal portion of such
Realized Losses shall be allocated to the Class C-Z-2 Regular Interest in reduction of the Class Principal Balance thereof; and (3)
the principal portion of Realized Losses on Group III Loans shall be allocated, first, to the Class C-Y-3 Regular Interest to the
extent of the Class C-Y-3 Principal Reduction Amount in reduction of the Class Principal Balance of such Regular Interest and,
second, the remainder, if any, of such principal portion of such Realized Losses shall be allocated to the Class C-Z-3 Regular
Interest in reduction of the Class Principal Balance thereof.

Realized Losses on Mortgage Loans in a Loan Group shall be allocated
among the  Certificates (i) for Realized Losses allocable to principal (a) first, to the Class B-6 Certificates, until the
Class B-6 Principal Balance has been reduced to zero, (b) second, to the Class B-5 Certificates, until the Class B-5 Principal
Balance has been reduced to zero, (c) third, to the Class B-4 Certificates, until the Class B-4 Principal Balance has been reduced
to zero, (d) fourth, to the Class B-3 Certificates, until the Class B-3 Principal Balance has been reduced to zero, (e) fifth, to
the Class B-2 Certificates, until the Class B-2 Principal Balance has been reduced to zero, (f) sixth, to the Class B-1
Certificates, until the Class B-1 Principal Balance has been reduced to zero, and (g) seventh, to the Class A Certificates related
to such Loan Group in reduction thereof; provided, however, that if the loss is recognized with respect to a Class I-P or
Class III-P Mortgage Loan, the applicable Class P Fraction of such loss shall first be allocated to the Class I-P or Class III-P
Certificates, as applicable, and the remainder of such loss shall be allocated as set forth above in  

 

38

 

 

this clause (i); and (ii) for
Realized Losses allocable to interest (a) first, to the Class B-6 Certificates, in reduction of accrued but unpaid interest thereon
and then in reduction of the Class B-6 Principal Balance, (b) second, to the Class B-5 Certificates, in reduction of accrued but
unpaid interest thereon and then in reduction of the Class B-5 Principal Balance, (c) third, to the Class B-4 Certificates, in
reduction of accrued but unpaid interest thereon and then in reduction of the Class B-4 Principal Balance, (d) fourth, to the Class
B-3 Certificates, in reduction of accrued but unpaid interest thereon and then in reduction of the Class B-3 Principal Balance, (e)
fifth, to the Class B-2 Certificates, in reduction of accrued but unpaid interest thereon and then in reduction of the Class B-2
Principal Balance, (f) sixth, to the Class B-1 Certificates, in reduction of accrued but unpaid interest thereon and then in
reduction of the Class B-1 Principal Balance, and (g) seventh, to the Class A and Class X Certificates related to such Loan Group,
pro rata according to accrued but unpaid interest on such Classes, in reduction thereof, and then to those related Class A
Certificates in reduction thereof.

For any Distribution Date, any amounts distributed to the Class P
Certificates pursuant to clauses (e)(i) and (e)(ii) of the definition of “REMIC II Distribution Amount” shall be
allocated as a loss to the most junior Class (or Classes) of Class B Certificates, until the Class Principal Balance thereof has
been reduced to zero.

On each Distribution Date, after giving effect to the principal
distributions and allocations of losses as provided in this Agreement (without regard to this paragraph), if the aggregate Class
Principal Balance of all outstanding Classes of Certificates (plus any Cumulative Carry-Forward Subsequent Recoveries Amount for
such Distribution Date for any Loan Group) exceeds the aggregate principal balance of the Mortgage Loans remaining to be paid at
the close of business on the Cut-Off Date, after deduction of (i) all principal payments due on or before the Cut-Off Date in
respect of each such Mortgage Loan whether or not paid, and (ii) all amounts of principal in respect of each Mortgage Loan that
have been received or advanced and included in the REMIC II Available Distribution Amount for the Group I, Group II, Group III and
Group IV Certificates and all losses in respect of each Mortgage Loan that have been allocated to the Certificates on such
Distribution Date or prior Distribution Dates, then such excess will be deemed a principal loss and will be allocated to the most
junior Class of Class B Certificates, in reduction of the Class Principal Balance thereof.

Recognition Agreement: With
respect to a Cooperative Loan, the recognition agreement between the Cooperative and the originator of such Cooperative
Loan.

Record Date: The last
Business Day of the month immediately preceding the month of the related Distribution Date.

 

39

 

 

Regular Interests: (i) With
respect to REMIC I, the REMIC I Regular Interests and (ii) with respect to REMIC II, the REMIC II Regular Interests.

Relief Act Shortfall: With
respect to a Loan Group, for any Distribution Date for any Mortgage Loan in such Loan Group with respect to which the
Servicemembers Civil Relief Act, formerly known as the Soldiers’ and Sailors’ Civil Relief Act of 1940, or any
comparable state legislation (collectively, the “Relief Act”), limits the amount of interest payable by the
related Mortgagor, an amount equal to one month’s interest on such Mortgage Loan at an annual interest rate equal to the
excess, if any, of (i) the annual interest rate otherwise payable by the Mortgagor on the related Due Date under the terms of the
related Mortgage Note over (ii) the annual interest rate payable by the Mortgagor on the related Due Date by application of the
Relief Act.

REMIC: A real estate
mortgage investment conduit, as such term is defined in the Code.

REMIC Provisions: Sections
860A through 860G of the Code, related Code provisions and regulations promulgated thereunder, as the foregoing may be in effect
from time to time.

REMIC I: The segregated pool
of assets of the Trust consisting of the REMIC I Assets, which shall be a REMIC pursuant to the Code, with respect to which a
separate REMIC election is to be made and the beneficial interests in which shall be the REMIC I Regular Interests and the Class
R-1 Residual Interest.

REMIC I Assets: All of the
Mortgage Pool Assets.

REMIC I Available Distribution Amount:  For each Loan Group for any Distribution Date, the sum of the following amounts with respect to the Mortgage Loans
in such Loan Group (together with, for the first Distribution Date, the amount deposited by the Company in the Certificate Account
pursuant to the last paragraph of Section 2.01):

(1)           the
total amount of all cash received by or on behalf of the Master Servicer with respect to such Mortgage Loans by the Determination
Date for such Distribution Date and not previously distributed, including Monthly P&I Advances made by Servicers, Liquidation
Proceeds and scheduled amounts of distributions from Buydown Funds respecting Buydown Loans, if any, except:

(a)           all scheduled payments of principal and interest collected
but due subsequent to such Distribution Date;

(b)           all Curtailments received after the Prior Period;

(c)           all Payoffs received after the Payoff Period immediately
preceding such Distribution Date (together with any interest payment received with such Payoffs to the extent that it represents
the payment of interest accrued on the Mortgage Loans for the period subsequent to the Prior Period), and interest which was
accrued and received on Payoffs received during the period from the 1st to the 14th day of the month of such Distribution Date,
which interest shall not be included in the calculation of the REMIC I Available Distribution Amount for any Distribution
Date;

 

40

 

 

(d)           Insurance Proceeds, Liquidation Proceeds and Subsequent
Recoveries received on such Mortgage Loans after the Prior Period;

(e)           all amounts in the Certificate Account which are due and
reimbursable to a Servicer or the Master Servicer pursuant to the terms of this Agreement;

(f)            the sum of the Master Servicing Fee and the Servicing
Fee for each such Mortgage Loan, and any Special Primary Insurance Premium payable on such Distribution Date with respect to such
Mortgage Loan; and

(g)           Excess Liquidation Proceeds;

(2)           the
sum, to the extent not previously distributed, of the following amounts, to the extent advanced or received, as applicable, by the
Master Servicer:

(a)           any Monthly P&I Advance made by the Master Servicer to
the Trustee with respect to such Distribution Date relating to such Mortgage Loans; and

(b)           Compensating Interest; and

(3)           the
total amount of any cash received during the Prior Period by the Trustee or the Master Servicer in respect of a Purchase Obligation
under Section 2.07 and Section 2.08 or any permitted purchase of such a Mortgage Loan.

REMIC I Distribution Amount:
For any Distribution Date, the REMIC I Available Distribution Amount shall be distributed to the REMIC I Regular Interests and the
Class R-1 Residual Interest in the following amounts and priority:

(a)           To the
extent of the REMIC I Available Distribution Amount for Loan Group I and Loan Group IV:

(i)                  first, to the Class I-P-M Regular Interest, the aggregate for all of the Class I-P Mortgage
Loans of the product for each Class I-P Mortgage Loan of the applicable Class I-P Fraction and the sum of (x) scheduled payments of
principal on such Class I-P Mortgage Loan due on or before the related Due Date in respect of which no distribution has been made
on any previous Distribution Date and which were received by the Determination Date, or which have been advanced as part of a
Monthly P&I Advance with respect to such Distribution Date, (y) the principal portion received in respect of such Class I-P
Mortgage Loan during the Prior Period of (1) Curtailments, (2) Insurance Proceeds, (3) the amount, if any, of the principal portion
of the Purchase Price paid pursuant to a Purchase Obligation or any purchase of a Mortgage Loan permitted hereunder and (4)
Liquidation Proceeds and (z) the principal portion of Payoffs received in respect of such Class I-P Mortgage Loan during the Payoff
Period;

(ii)                second, to the Class C-X-M, Class C-Y-1 and Class C-Z-1 Regular Interests, concurrently, the sum
of (x) the Interest Distribution Amounts for the Class C-Y-1 and Class C-Z-1 Regular Interests and (y) the portion of the Interest
Distribution Amount for the Class C-X-M Regular Interest derived from the Group I and Group IV Loans, in each case remaining unpaid
from previous Distribution Dates, pro rata according to their respective shares of such unpaid amounts;

 

141

 

 

(iii)               third, to the Class C-X-M, Class C-Y-1 and Class C-Z-1 Regular Interests, concurrently, the sum of (x) the Interest
Distribution Amounts for the Class C-Y-1 and Class C-Z-1 Regular Interests and (y) the portion of the Interest Distribution Amount
for the Class C-X-M Regular Interest derived from the Group I and Group IV Loans, in each case for the current Distribution Date,
pro rata according to their respective Interest Distribution Amounts (or portion thereof, as applicable); and

(iv)              fourth, to the Class C-Y-1 and Class C-Z-1 Regular Interests, the Class C-Y-1 Principal Distribution Amount and the Class C-Z-1
Principal Distribution Amount, respectively.

(b)           To the
extent of the REMIC I Available Distribution Amount for Loan Group II:

(i)            first, to the Class C-X-M,
Class C-Y-2 and Class C-Z-2 Regular Interests, concurrently, the sum of (x) the Interest Distribution Amounts for the Class C-Y-2
and Class C-Z-2 Regular Interests and (y) the portion of the Interest Distribution Amount for the Class C-X-M Regular Interest
derived from the Group II Loans, in each case remaining unpaid from previous Distribution Dates, pro rata according to their
respective shares of such unpaid amounts;

(ii)           second, to the Class C-X-M, Class C-Y-2 and Class C-Z-2
Regular Interests, concurrently, the sum of (x) the Interest Distribution Amounts for the Class C-Y-2 and Class C-Z-2 Regular
Interest and (y) the portion of the Interest Distribution Amount for the Class C-X-M Regular Interest derived from the Group II
Loans, in each case for the current Distribution Date, pro rata according to their respective Interest Distribution Amounts (or
portion thereof, as applicable); and

(iii)          third, to the Class C-Y-2 and Class C-Z-2 Regular Interests, the
Class C-Y-2 Principal Distribution Amount and the Class C-Z-2 Principal Distribution Amount, respectively.

(c)           To the
extent of the REMIC I Available Distribution Amount for Loan Group III:

(i)                  first, to the Class III-P-M Regular Interest, the aggregate for all of the Class III-P Mortgage
Loans of the product for each Class III-P Mortgage Loan of the applicable Class III-P Fraction and the sum of (x) scheduled
payments of principal on such Class III-P Mortgage Loan due on or before the related Due Date in respect of which no distribution
has been made on any previous Distribution Date and which were received by the Determination Date, or which have been advanced as
part of a Monthly P&I Advance with respect to such Distribution Date, (y) the principal portion received in respect of such
Class III-P Mortgage Loan during the Prior Period of (1) Curtailments, (2) Insurance Proceeds, (3) the amount, if any, of the
principal portion of the Purchase Price paid pursuant to a Purchase Obligation or any purchase of a Mortgage Loan permitted
hereunder and (4) Liquidation Proceeds and (z) the principal portion of Payoffs received in respect of such Class III-P Mortgage
Loan during the Payoff Period;

 

42

 

 

(ii)                second, to the Class C-X-M, Class C-Y-3 and Class C-Z-3 Regular Interests, concurrently, the sum of (x) the Interest
Distribution Amounts for the Class C-Y-3 and Class C-Z-3 Regular Interests and (y) the portion of the Interest Distribution Amount
for the Class C-X-M Regular Interest derived from the Group III Loans, in each case remaining unpaid from previous Distribution
Dates, pro rata according to their respective shares of such unpaid amounts;

(iii)               third, to the Class C-X-M, Class C-Y-3 and Class C-Z-3 Regular Interests, concurrently, the sum of (x) the Interest
Distribution Amounts for the Class C-Y-3 and Class C-Z-3 Regular Interests and (y) the portion of the Interest Distribution Amount
for the Class C-X-M Regular Interest derived from the Group III Loans, in each case for the current Distribution Date, pro rata
according to their respective Interest Distribution Amounts (or portion thereof, as applicable);

(iv)              fourth, to the Class R-1 Residual Interest, until the Class Principal Balance thereof has been reduced to zero;
and

(v)                fifth, to the Class C-Y-3 and Class C-Z-3 Regular Interests, the Class C-Y-3 Principal Distribution Amount and the Class
C-Z-3 Principal Distribution Amount, respectively.

(d)           To the
extent of the REMIC I Available Distribution Amounts for Loan Group I, Loan Group II, Loan Group III and Loan Group IV for such
Distribution Date remaining after payment of the amounts pursuant to paragraphs (a), (b) and (c) of this definition of “REMIC
I Distribution Amount”:

(i)                  first, to the Class I-P-M and Class III-P-M Regular Interests, the aggregate amount of any distributions to the Class I-P
or Class III-P Certificates, as applicable, pursuant to paragraphs (e)(i) and (e)(ii) of the definition of “REMIC II
Distribution Amount” on such Distribution Date; provided, however, that any amounts distributed pursuant to this
paragraph (d)(i) of this definition of “REMIC I Distribution Amount” shall not cause a reduction in the Class Principal
Balances of any of the Class P-M Regular Interests;

(ii)                second, to each Class of Class C-Y and Class C-Z Regular Interests, pro rata according to the amount of unreimbursed
Realized Losses allocable to principal previously allocated to each such Class, the aggregate amount of any distributions to the
Certificates pursuant to paragraph (e)(xxi) of the definition of “REMIC II Distribution Amount” on such Distribution
Date; provided, however, that any amounts distributed pursuant to this paragraph (d)(ii) of this definition of “REMIC
I Distribution Amount” shall not cause a reduction in the Class Principal Balances of any of the Class C-Y and Class C-Z
Regular Interests; and

(iii)               second, to the Class R-1 Residual Interest, the Residual Distribution Amount for the Class R-1 Residual Interest for such
Distribution Date.

REMIC I Regular Interests:
The Classes of undivided beneficial interests in REMIC I designated as “regular interests” in the table titled
“REMIC I Interests” in the Preliminary Statement hereto. The REMIC I Regular Interests, together with the Class R-1
Residual Interest, shall be deemed to be a separate series of beneficial interests in the assets of the Trust consisting of the
REMIC I Assets pursuant to Section 3806(b)(2) of the Statutory Trust Statute.

 

43

 

 

REMIC II: The segregated
pool of assets of the Trust consisting of the REMIC II Assets, which shall be a REMIC pursuant to the Code, with respect to which a
separate REMIC election is to be made, and the beneficial interests in which shall be the REMIC II Regular Interests and the Class
R-2 Residual Interest.

REMIC II Assets: The REMIC I
Regular Interests. 

REMIC II Available Distribution Amount: With respect to the Group I Certificates, on any Distribution Date, the aggregate of all distributions to the Class I-P
Regular Interest and the portions attributable to Group I Loans of all distributions to the Class C-X-M, Class C-Y-1 and Class
C-Z-1 Regular Interests (which amount shall be available for distributions to the Group I, Class C-X and Class B Certificates and
the Class R-2 Residual Interest as provided herein). With respect to the Group II Certificates, on any Distribution Date, the
aggregate of all distributions to the Class C-Y-2 and Class C-Z-2 Regular Interests and the portions attributable to Group II Loans
of all distributions to the Class C-X-M Regular Interest (which amount shall be available for distributions to the Group II, Class
C-X and Class B Certificates and the Class R-2 Residual Interest as provided herein). With respect to the Group III Certificates,
on any Distribution Date, the aggregate of all distributions to the Class III-P, Class C-Y-3 and Class C-Z-3 Regular Interests and
the portions attributable to Group III Loans of all distributions to the Class C-X-M Regular Interest (which amount shall be
available for distributions to the Group III, Class C-X and Class B Certificates and the Class R-2 Residual Interest as provided
herein). With respect to the Group IV Certificates, on any Distribution Date, the aggregate of the portions attributable to Group
IV Loans of all distributions to the Class C-X-M, Class C-Y-1 and Class C-Z-1 Regular Interests (which amount shall be available
for distributions to the Group IV, Class C-X and Class B Certificates and the Class R-2 Residual Interest as provided
herein).

REMIC II Distribution Amount: For any Distribution Date, the REMIC II Available Distribution Amount shall be distributed to the Certificates and the Class
R-2 Residual Interest in the following amounts and priority:

(a)           With
respect to the Class C-X and Group I Certificates, on any Distribution Date, to the extent of the REMIC II Available Distribution
Amount for the Group I Certificates for such Distribution Date:

(i)                  first, to the Class I-P Certificates, the aggregate for all Class I-P Mortgage Loans of the
product for each Class I-P Mortgage Loan of the applicable Class I-P Fraction and the sum of (x) scheduled payments of principal on
such Class I-P Mortgage Loan due on or before the related Due Date in respect of which no distribution has been made on any
previous Distribution Date and which were received by the Determination Date, or which have been advanced as part of a Monthly
P&I Advance with respect to such Distribution Date, (y) the principal portion received in respect of such Class I-P Mortgage
Loan during the Prior Period of (1) Curtailments, (2) Insurance Proceeds, (3) the amount, if any, of the principal portion of the
Purchase Price paid pursuant to a Purchase Obligation or any purchase of a Mortgage Loan permitted hereunder and (4) Liquidation
Proceeds and (z) the principal portion of Payoffs received in respect of such Class I-P Mortgage Loan during the Payoff
Period;

 

44

 

 

(ii)                second, to the Class I-A and Class C-X Certificates, concurrently, the sum of (x) the Interest
Distribution Amounts for the Class I-A Certificates and (y) the portion of the Interest Distribution Amount for the Class C-X
Certificates derived from the Group I Loans, in each case remaining unpaid from previous Distribution Dates, pro rata according to
their respective shares of such unpaid amounts;

(iii)               third, to the Class I-A and Class C-X Certificates, concurrently, the sum of (x) the Interest Distribution Amounts for the
Class I-A Certificates and (y) the portion of the Interest Distribution Amount for the Class C-X Certificates derived from the
Group I Loans, in each case for the current Distribution Date, pro rata according to their respective Interest Distribution
Amounts; and

(iv)              fourth, to the Class I-A Certificates, as principal, the Group I Senior Principal Distribution Amount, until the Class I-A
Principal Balance has been reduced to zero;

(b)           With
respect to the Class C-X and Group II Certificates, on any Distribution Date, to the extent of the REMIC II Available Distribution
Amount for the Group II Certificates for such Distribution Date:

(i)                  first, to the Class II-A and Class C-X Certificates, concurrently, the sum of (x) the Interest Distribution Amounts for
the Class II-A Certificates and (y) the portion of the Interest Distribution Amount for the Class C-X Certificates derived from the
Group II Loans, in each case remaining unpaid from previous Distribution Dates, pro rata according to their respective shares of
such unpaid amounts;

(ii)                second, to the Class II-A and Class C-X Certificates, concurrently, the sum of (x) the Interest Distribution Amounts for
the Class II-A Certificates and (y) the portion of the Interest Distribution Amount for the Class C-X Certificates derived from the
Group II Loans, in each case for the current Distribution Date, pro rata according to their respective Interest Distribution
Amounts; and

(iii)               third, to the Class II-A Certificates, as principal, the Group II Senior Principal Distribution Amount, until the Class II-A
Principal Balance has been reduced to zero;

(c)           With
respect to the Class C-X and Group III Certificates, to the extent of the REMIC II Available Distribution Amount for the Group III
Certificates for such Distribution Date:

(i)            first, to the Class III-P Certificates, the aggregate
for all Class III-P Mortgage Loans of the product for each Class III-P Mortgage Loan of the applicable Class III-P Fraction and the
sum of (x) scheduled payments of principal on such Class III-P Mortgage Loan due on or before the related Due Date in respect of
which no distribution has been made on any previous Distribution Date and which were received by the Determination Date, or which
have been advanced as part of a Monthly P&I Advance with respect to such Distribution Date, (y) the principal portion received
in respect of such Class III-P Mortgage Loan during the Prior Period of (1) Curtailments, (2) Insurance Proceeds, (3) the amount,
if any, of the principal portion of the Purchase Price paid pursuant to a Purchase Obligation or any purchase of a Mortgage Loan
permitted hereunder and (4) Liquidation Proceeds and (z) the principal portion of Payoffs received in respect of such Class III-P
Mortgage Loan during the Payoff Period;

 

45

 

 

(ii)           second, to the Class III-A and Class C-X Certificates,
concurrently, the sum of (x) the Interest Distribution Amounts for the Class III-A Certificates and (y) the portion of the Interest
Distribution Amount for the Class C-X Certificates derived from the Group III Loans, in each case remaining unpaid from previous
Distribution Dates, pro rata according to their respective shares of such unpaid amounts;

(iii)          third, to the Class III-A and Class C-X Certificates,
concurrently, the sum of (x) the Interest Distribution Amounts for the Class III-A Certificates and (y) the portion of the Interest
Distribution Amount for the Class C-X Certificates derived from the Group III Loans, in each case for the current Distribution
Date, pro rata according to their respective Interest Distribution Amounts; and

(iv)          fourth, to the Class III-A Certificates, as principal, the Group
III Senior Principal Distribution Amount, until the Class III-A Principal Balance has been reduced to zero (reduced, on the first
Distribution Date, by $100);

 

(d)           With
respect to the Class C-X and Group IV Certificates, to the extent of the REMIC II Available Distribution Amount for the Group IV
Certificates for such Distribution Date:

(i)                  first, to the Class IV-A and Class C-X Certificates, concurrently, the sum of (x) the Interest Distribution Amounts for
the Class IV-A Certificates and (y) the portion of the Interest Distribution Amount for the Class C-X Certificates derived from the
Group IV Loans, in each case remaining unpaid from previous Distribution Dates, pro rata according to their respective shares of
such unpaid amounts;

(ii)                second, to the Class IV-A and Class C-X Certificates, concurrently, the sum of (x) the Interest Distribution Amounts for
the Class IV-A Certificates and (y) the portion of the Interest Distribution Amount for the Class C-X Certificates derived from the
Group IV Loans, in each case for the current Distribution Date, pro rata according to their respective Interest Distribution
Amounts; and

(iii)               third, to the Class IV-A Certificates, as principal, the Group IV Senior Principal Distribution Amount, until the Class IV-A
Principal Balance has been reduced to zero; and

(e)           With
respect to the Group I, Group II, Group III, Group IV and Class B Certificates and the Class R-2 Residual Interest, on any
Distribution Date, to the extent of the REMIC II Available Distribution Amounts for the Group I, Group II, Group III and Group IV
Certificates for such Distribution Date remaining after the payment of the amounts pursuant to paragraphs (a), (b), (c) and (d) of
this definition of “REMIC II Distribution Amount”:

 

46

 

 

(i)            first, to the Class I-P and Class III-P Certificates,
to the extent of amounts otherwise available to pay the Subordinate Principal Distribution Amount (without regard to clause (B)(x)
of the definition thereof) on such Distribution Date and to the extent not paid to such Classes of Certificates on previous
Distribution Dates pursuant to clause (e)(ii) of this definition of “REMIC II Distribution Amount,” principal in an
amount equal to the applicable Class I-P or Class III-P Fraction of any Realized Loss on a Class I-P or Class III-P Mortgage Loan
incurred prior to the Prior Period;

(ii)           second, to the I-P and Class III-P Certificates, to the
extent of amounts otherwise available to pay the Subordinate Principal Distribution Amount (without regard to clause (B)(x) of the
definition thereof) on such Distribution Date, principal in an amount equal to (x) in the case of the Class I-P Certificates, the
applicable Class I-P Fraction of any Realized Loss on a Class I-P Mortgage Loan incurred in the Prior Period and (y) in the case of
the Class III-P Certificates, the applicable Class III-P Fraction of any Realized Loss on a Class III-P Mortgage Loan incurred in
the Prior Period; provided, that any amounts distributed in respect of losses pursuant to paragraph (e)(i) or this paragraph
(e)(ii) of this definition of “REMIC II Distribution Amount” shall not cause a reduction in either of the Class I-P or
Class III-P Principal Balance; provided, further, that if the amounts otherwise available to pay the Subordinate Principal
Distribution Amount (without regard to clause (B)(x) of the definition thereof) for any such Distribution Date are insufficient to
cover such outstanding principal losses for the Class I-P and Class III-P Certificates as provided in paragraph (e)(i) or this
paragraph (e)(ii) of this definition of “REMIC II Distribution Amount,” then such amounts will be allocated pro rata to
the Class I-P and Class III-P Certificates based on the amount such Certificates are entitled to receive pursuant to paragraph
(e)(i) or this paragraph (e)(ii) of this definition of “REMIC II Distribution Amount”;

(iii)          third, to the Class B-1 Certificates, the Interest Distribution
Amount for such Class of Certificates remaining unpaid from previous Distribution Dates;

(iv)          fourth, to the Class B-1 Certificates, the Interest Distribution
Amount for such Class of Certificates for the current Distribution Date;

(v)           fifth, to the Class B-1 Certificates, the portion of the
Subordinate Principal Distribution Amount allocable to such Class of Certificates pursuant to the definition of “Subordinate
Principal Distribution Amount,” until the Class B-1 Principal Balance has been reduced to zero;

(vi)          sixth, to the Class B-2 Certificates, the Interest Distribution
Amount for such Class of Certificates remaining unpaid from previous Distribution Dates;

(vii)        
seventh, to the Class B-2 Certificates, the Interest Distribution Amount for such Class of Certificates for the current
Distribution Date;

 

47

 

 

(viii)       
eighth, to the Class B-2 Certificates, the portion of the Subordinate Principal Distribution Amount allocable to such Class of
Certificates pursuant to the definition of “Subordinate Principal Distribution Amount,” until the Class B-2 Principal
Balance has been reduced to zero;

(ix)           ninth, to the Class B-3 Certificates, the Interest
Distribution Amount for such Class of Certificates remaining unpaid from previous Distribution Dates;

(x)            tenth, to the Class B-3 Certificates, the Interest
Distribution Amount for such Class of Certificates for the current Distribution Date;

(xi)           eleventh, to the Class B-3 Certificates, the portion of the
Subordinate Principal Distribution Amount allocable to such Class of Certificates pursuant to the definition of “Subordinate
Principal Distribution Amount,” until the Class B-3 Principal Balance has been reduced to zero;

(xii)          twelfth, to the Class B-4 Certificates, the Interest
Distribution Amount for such Class of Certificates remaining unpaid from previous Distribution Dates;

(xiii)         thirteenth, to the Class B-4 Certificates, the Interest Distribution
Amount for such Class of Certificates for the current Distribution Date;

(xiv)       
fourteenth, to the Class B-4 Certificates, the portion of the Subordinate Principal Distribution Amount allocable to such Class of
Certificates pursuant to the definition of “Subordinate Principal Distribution Amount,” until the Class B-4 Principal
Balance has been reduced to zero;

(xv)        
fifteenth, to the Class B-5 Certificates, the Interest Distribution Amount for such Class of Certificates remaining unpaid from
previous Distribution Dates;

(xvi)       
sixteenth, to the Class B-5 Certificates, the Interest Distribution Amount for such Class of Certificates for the current
Distribution Date;

(xvii)      
seventeenth, to the Class B-5 Certificates, the portion of the Subordinate Principal Distribution Amount allocable to such Class of
Certificates pursuant to the definition of “Subordinate Principal Distribution Amount,” until the Class B-5 Principal
Balance has been reduced to zero;

(xviii)      eighteenth, to
the Class B-6 Certificates, the Interest Distribution Amount for such Class of Certificates remaining unpaid from previous
Distribution Dates;

(xix)        
nineteenth, to the Class B-6 Certificates, the Interest Distribution Amount for such Class of Certificates for the current
Distribution Date;

(xx)          twentieth, to the Class B-6 Certificates, the portion of the
Subordinate Principal Distribution Amount allocable to such Class of Certificates pursuant to the definition of “Subordinate
Principal Distribution Amount,” until the Class B-6 Principal Balance has been reduced to zero;

 

48

 

 

(xxi)        
twenty-first, to each Class of Certificates in order of seniority (which, from highest to lowest, shall be as follows: the Class
I-A, Class I-P, Class II-A, Class III-A, Class III-P and Class IV-A Certificates of equal seniority, and then Class B-1, Class B-2,
Class B-3, Class B-4, Class B-5 and Class B-6 of decreasing seniority) the remaining portion, if any, of the REMIC II Available
Distribution Amounts for the Group I, Group II, Group III and Group IV Certificates, up to the amount of unreimbursed Realized
Losses allocable to principal previously allocated or to be allocated on such Distribution Date to such Class, if any; provided,
however, that in the case of Classes of Certificates of equal seniority, the amount distributable to such Classes shall be
allocated among such Classes according to the amount of losses allocated thereto; provided, further, that any amounts
distributed pursuant to this paragraph (e)(xxi) of this definition of “REMIC II Distribution Amount” shall not cause a
reduction in the Class Principal Balances of any of the Certificates; and

(xxii)       
twenty-second, to the Class R-2 Residual Interest, the Residual Distribution Amounts for the Group I, Group II, Group III and Group
IV Certificates for such Distribution Date.

Notwithstanding the foregoing paragraph (e) of this definition of
“REMIC II Distribution Amount,”

(X)          on any
Distribution Date on which both of the following conditions specified in clauses (1) and (2) are met:

(1)
          the aggregate Class Principal Balance of any of the Class I-A Certificates,
the Class II-A Certificates, the Class III-A Certificates or the Class IV-A Certificates has been reduced to zero, and

(2)
          either (a) the Class B Percentage for such Distribution Date is less than
200% of the Class B Percentage as of the Closing Date or (b) the outstanding principal balance of the Mortgage Loans in any of Loan
Group I, Loan Group II, Loan Group III or Loan Group IV delinquent 60 days or more averaged over the last six months (including
Mortgage Loans in foreclosure and Mortgage Loans the Mortgaged Property of which is held by REMIC I and acquired by foreclosure or
deed in lieu of foreclosure), as a percentage of the related Subordinate Component Balance, is greater than or equal to
50%,

all principal received or advanced with
respect to the Mortgage Loans in the Loan Group related to the Class A Certificates that have been paid in full (after
distributions of princpial to the Class P Certificates pursuant to paragraphs (a)(i), (c)(i), (e)(i) and (e)(ii) above, if
applicable) shall be paid as principal to the remaining Class A Certificates of such other Certificate Group or Groups to the
extent of and in reduction of the Class Principal Balances thereof, prior to any distributions of principal to the Class B
Certificates pursuant to paragraph (e) above; provided, however, that if there are two or more Certificate Groups with
outstanding Class A Certificates, then such principal will be distributed between those Certificate Groups pro rata according to
the aggregate Class Principal Balance of the Class A Certificates of such Certificate Groups, and

 

49

 

 

(Y)           if on
any Distribution Date any of Loan Group I, Loan Group II, Loan Group III or Loan Group IV is an Undercollateralized Group and the
other such Loan Group or Groups is an Overcollateralized Group, then the REMIC II Available Distribution Amount for the Certificate
Group or Groups related to the Overcollateralized Group or Groups, to the extent remaining following distributions of interest and
principal to the Group I, Group II, Group III, Group IV and Class C-X Certificates pursuant to paragraph (a), (b), (c), (d) or (e)
above, as applicable, shall be paid in the following priority: (1) first, such remaining amount, up to the Total Transfer Amount
for each Undercollateralized Group, pro rata according to the Total Transfer Amount for each such Undercollateralized Group, shall
be distributed (a) first, to the Class A Certificates related to each Undercollateralized Group, in payment of any portion of the
Interest Distribution Amounts for such Classes of Certificates remaining unpaid from such Distribution Date or previous
Distribution Dates, pro rata according to their respective shares of such unpaid amounts, and (b) second, to the Class A
Certificates related to each such Undercollateralized Group, as principal, and (2) second, any remaining amount shall be
distributed pursuant to paragraph (e).

REMIC II Regular Interests:
The Classes of undivided beneficial interests in REMIC II designated as “regular interests” in the table titled
“REMIC II Interests” in the Preliminary Statement hereto. The REMIC II Regular Interests, together with the Class R-2
Residual Interest, shall be deemed to be a separate series of beneficial interests in the assets of the Trust consisting of the
REMIC II Assets pursuant to Section 3806(b)(2) of the Statutory Trust Statute.

Residual Certificates: 
The Class R Certificates.

Residual Distribution Amount: For any Distribution Date, with respect to the Class R-1 Residual Interest, any portion of the REMIC I Available Distribution
Amounts for Loan Group I, Loan Group II, Loan Group III and Loan Group IV remaining after all distributions of such REMIC I
Available Distribution Amounts pursuant to clauses (a), (b), (c) and (d) (other than the last subclause of clause (d)) of the
definition of “REMIC I Distribution Amount.”

For any Distribution Date, with respect to the Class R-2 Residual
Interest and for the Group I, Group II, Group III and Group IV Certificates, any portion of the REMIC II Available Distribution
Amount for the Group I, Group II, Group III and Group IV Certificates, respectively, remaining after all distributions of such
REMIC II Available Distribution Amount pursuant to clauses  (a), (b), (c), (d) and (e), as applicable, of the definition of
“REMIC II Distribution Amount” (other than the distributions pursuant to the last subclause of clause (e)).

Upon termination of the obligations created by this Agreement and
liquidation of REMIC I and REMIC II, the amounts which remain on deposit in the Certificate Account after payment to the Holders of
the REMIC I Regular Interests of the amounts set forth in Section 9.01 of this Agreement, and subject to the conditions set forth
therein, shall be distributed to the Class R-1 and Class R-2 Residual Interests in accordance with the preceding sentences of this
definition as if the date of such distribution were a Distribution Date.

Responsible Officer: When
used with respect to the Trustee or the Delaware Trustee, any officer assigned to and working in the Corporate Trust Office (in the
case of the Trustee) or its corporate trust office (in the case of the Delaware Trustee) or, in each case, in a similar group and
also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s
knowledge of and familiarity with the particular subject.

 

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S&P: Standard &
Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., provided that at any time it be a Rating
Agency.

Secretary of State: The
Secretary of State of the State of Delaware.

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

Security Agreement: With
respect to a Cooperative Loan, the agreement or mortgage creating a security interest in favor of the originator of the Cooperative
Loan in the related Cooperative Stock.

Selling and Servicing Contract: (a) The contract (including the Washington Mutual Mortgage Securities Corp. Selling Guide and Washington Mutual Mortgage
Securities Corp. Servicing Guide to the extent incorporated by reference therein) between the Company and a Person relating to the
sale of the Mortgage Loans to the Company and the servicing of such Mortgage Loans for the benefit of the Certificateholders, which
contract is substantially in the form of Exhibit E hereto, as such contract may be amended or modified from time to time; provided,
however, that any such amendment or modification shall not materially adversely affect the interests and rights of
Certificateholders or (b) any other similar contract, including any mortgage loan purchase and servicing agreement or any
assignment, assumption and recognition agreement related to a mortgage loan purchase and sale agreement, providing substantially
similar rights and benefits as those provided by the forms of contract attached as Exhibit E hereto.

Senior Certificates: The
Class C-X, Group I, Group II, Group III, Group IV and Residual Certificates.

Senior Subordinate Certificates:  The Subordinate Certificates other than the Junior Subordinate Certificates.

Servicer: A mortgage loan
servicing institution to which the Master Servicer has assigned servicing duties with respect to any Mortgage Loan under a Selling
and Servicing Contract; provided, however, the Master Servicer may designate itself or one or more other mortgage loan servicing
institutions as Servicer upon termination of an initial Servicer’s servicing duties.

Servicing Fee: For each
Mortgage Loan, the fee paid to the Servicer thereof to perform primary servicing functions for the Master Servicer with respect to
such Mortgage Loan, equal to the per annum rate set forth for each Mortgage Loan in the Mortgage Loan Schedule on the outstanding
Principal Balance of such Mortgage Loan.  In addition, any prepayment penalty received on a Mortgage Loan will be paid as
additional servicing compensation to the Master Servicer or the related Servicer.

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

 

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Special Primary Insurance Policy: Any Primary Insurance Policy covering a Mortgage Loan the premium of which is payable by the Trustee pursuant to Section
4.04(a), if so identified in the Mortgage Loan Schedule. There are no Special Primary Insurance Policies with respect to any of the
Mortgage Loans.

Special Primary Insurance Premium: With respect to any Special Primary Insurance Policy, the monthly premium payable thereunder.

Statutory Trust Statute:
Chapter 38 of Title 12 of the Delaware Code, 12 Del.C. §3801 et seq., as the same may be amended from time to
time.

Stripped Interest Rate: For
each Group I Loan and Group IV Loan, the excess, if any, of the Pass-Through Rate for such Mortgage Loan over 6.000% per
annum.  For each Group II Loan, the excess, if any, of the Pass-Through Rate for such Mortgage Loan over 6.500% per annum. For
each Group III Loan, the excess, if any, of the Pass-Through Rate for such Mortgage Loan over 5.500% per annum.

Subordinate Certificates:  The Class B Certificates.

Subordinate Component Balance: With respect to Loan Group I for any date of determination, the then outstanding aggregate Principal Balance of the Group I
Loans (less the applicable Class I-P Fraction thereof with respect to any Class I-P Mortgage Loan) minus the then outstanding
aggregate Class Principal Balance of the Class I-A Certificates. With respect to Loan Group II for any date of determination, the
then outstanding aggregate Principal Balance of the Group II Loans minus the then outstanding aggregate Class Principal Balance of
the Class II-A Certificates. With respect to Loan Group III for any date of determination, the then outstanding aggregate Principal
Balance of the Group III Loans (less the applicable Class III-P Fraction thereof with respect to any Class III-P Mortgage Loan)
minus the then outstanding aggregate Class Principal Balance of the Class III-A and Residual Certificates.  With respect to
Loan Group IV for any date of determination, the then outstanding aggregate Principal Balance of the Group IV Loans minus the then
outstanding aggregate Class Principal Balance of the Class IV-A Certificates.

Subordinate Liquidation Amount: For any Distribution Date, the excess, if any, of the sum of (A) the aggregate of Liquidation Principal for all Mortgage
Loans which became Liquidated Mortgage Loans during the Prior Period and (B) any Subsequent Recoveries for such Distribution Date
for Loan Group I, Loan Group II, Loan Group III and Loan Group IV, over the sum of the Group I Senior Liquidation Amount, Group II
Senior Liquidation Amount, Group III Senior Liquidation Amount and Group IV Senior Liquidation Amount for such Distribution
Date.

Subordinate Percentage:  The Group I Subordinate Percentage, Group II Subordinate Percentage, Group III Subordinate Percentage or Group IV
Subordinate Percentage, as applicable.

 

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Subordinate Principal Distribution
Amount: For any Distribution Date, the excess of (A) the sum of (i) the Group I Subordinate Percentage of
the Principal Payment Amount for Loan Group I (exclusive of the portion thereof attributable to principal distributions to the
Class I-P Certificates pursuant to clause (a)(i) of the definition of “REMIC II Distribution Amount”), (ii) the Group
II Subordinate Percentage of the Principal Payment Amount for Loan Group II, (iii) the Group III Subordinate Percentage of the
Principal Payment Amount for Loan Group III (exclusive of the portion thereof attributable to principal distributions to the Class
III-P Certificates pursuant to clause (c)(i) of the definition of “REMIC II Distribution Amount”), (iv) the Group IV
Subordinate Percentage of the Principal Payment Amount for Loan Group IV, (v) the Subordinate Principal Prepayments Distribution
Amount (without regard to the proviso in the definition thereof) and (vi) the Subordinate Liquidation Amount over (B) the sum of
(x) the amounts required to be distributed to the Class P Certificates pursuant to clauses (e)(i) and (e)(ii) of the definition of
“REMIC II Distribution Amount” on such Distribution Date, (y) in the event that the aggregate Class Principal Balance
of any of the Class I-A, Class II-A, Group III-A or Class IV-A Certirficates has been reduced to zero, principal paid from the
REMIC II Available Distribution Amount related to such Class A Certificates to the remaining Class A Certificates, as set forth in
clause (X) of the sentence immediately following paragraph (e) of the definition of “REMIC II Distribution Amount,” and
(z) the amounts paid from the REMIC II Available Distribution Amount for the Certificate Group related to an Overcollateralized
Group to the Class A Certificates related to an Undercollateralized Group pursuant to clause (Y) of the sentence immediately
following paragraph (e) of the definition of “REMIC II Distribution Amount.”

On any Distribution Date, the Subordinate Principal Distribution
Amount shall be allocated pro rata, by Class Principal Balance, among the Classes of Class B Certificates and paid in the order of
distribution to such Classes pursuant to clause (e) of the definition of “REMIC II Distribution Amount” except as
otherwise stated in such definition. Notwithstanding the foregoing, on any Distribution Date prior to distributions on such date,
if the Subordination Level for any Class of Class B Certificates is less than such Subordination Level as of the Closing Date, the
pro rata portion of the Subordinate Principal Prepayments Distribution Amount otherwise allocable to the Class or Classes of Class
B Certificates junior to such Class will be distributed to the most senior Class of Class B Certificates for which the
Subordination Level is less than the Subordination Level as of the Closing Date, and to the Class or Classes of Class B
Certificates senior thereto, pro rata according to the Class Principal Balances of such Classes. For purposes of this definition
and the definition of “Subordination Level,” the relative seniority, from highest to lowest, of the Class B
Certificates shall be as follows: Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6.

Subordinate Principal Prepayments Distribution
Amount: For any Distribution Date, the sum of (i) the Group I Subordinate Prepayment Percentage of the
Principal Prepayment Amount for Loan Group I (exclusive of the portion thereof attributable to principal distributions to the Class
I-P Certificates pursuant to clause (a)(i) of the definition of “REMIC II Distribution Amount”), (ii) the Group II
Subordinate Prepayment Percentage of the Principal Prepayment Amount for Loan Group II, (iii) the Group III Subordinate Prepayment
Percentage of the Principal Prepayment Amount for Loan Group III (exclusive of the portion thereof attributable to principal
distributions to the Class III-P Certificates pursuant to clause (c)(i) of the definition of “REMIC II Distribution
Amount”), and (iv) the Group IV Subordinate Prepayment Percentage of the Principal Prepayment Amount for Loan Group IV;
provided, however, that if the amount specified in clause (B) of the definition of “Subordinate Principal Distribution
Amount” is greater than the sum of the amounts specified in clauses (A)(i), (A)(ii), (A)(iii), (A)(iv) and (A)(vi) of such
definition, then the Subordinate Principal Prepayments Distribution Amount shall be reduced by the amount of such
excess.

 

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Subordination Level:
On any specified date, with respect to any Class of Class B Certificates, the
percentage obtained by dividing the aggregate Class Principal Balance of the
Classes of Class B Certificates which are subordinate in right of payment to
such Class by the aggregate Class Principal Balance of the Group I, Group II,
Group III, Group IV and Class B Certificates and the Class R-1 Residual Interest
as of such date prior to giving effect to distributions of principal and
interest and allocations of Realized Losses on the Mortgage Loans on such date.

Subsequent Recoveries: For
any Distribution Date and any Loan Group, amounts received by the Master Servicer during the Prior Period (after deduction of
amounts reimbursable under Section 3.05(a)(i) and (ii)) in connection with the liquidation of defaulted Mortgage Loans in such Loan
Group after such Mortgage Loans became Liquidated Mortgage Loans, for each such Mortgage Loan up to the amount of Realized Losses,
if any, previously allocated in respect of such Mortgage Loan in reduction of the Class Principal Balance of any Class of
Certificates.

Substitute Mortgage Loan: A
Mortgage Loan which is substituted for another Mortgage Loan pursuant to and in accordance with the provisions of Section
2.07.

Tax Matters Person: With
respect to each of REMIC I and REMIC II, a Holder of a Class R Certificate with a Percentage Interest of at least 0.01% or any
Permitted Transferee of such Class R Certificateholder designated as succeeding to the position of Tax Matters Person in a notice
to the Trustee signed by authorized representatives of the transferor and transferee of such Class R Certificate. The Company is
hereby appointed to act as the Tax Matters Person for REMIC I and REMIC II so long as it holds a Class R Certificate with a
Percentage Interest of at least 0.01%.  The Company is hereby appointed to act as agent for the Tax Matters Person for REMIC I
and REMIC II, to perform the functions of such Tax Matters Person as provided herein, so long as the Company is the Master Servicer
hereunder, in the event that the Company ceases to hold a Class R Certificate with the required Percentage Interest. In the event
that the Company ceases to be the Master Servicer hereunder, the successor Master Servicer is hereby appointed to act as agent for
the Tax Matters Person for REMIC I and REMIC II, to perform the functions of such Tax Matters Person as provided herein. If the Tax
Matters Person for REMIC I and REMIC II becomes a Disqualified Organization, the last preceding Holder, that is not a Disqualified
Organization, of the Class R Certificate held by the Disqualified Organization shall be Tax Matters Person pursuant to and as
permitted by Section 5.01(c). If any Person is appointed as tax matters person by the Internal Revenue Service pursuant to the
Code, such Person shall be Tax Matters Person.

Termination Date: The date
upon which final payment of the Certificates will be made pursuant to the procedures set forth in Section 9.01(b).

 

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Termination Payment: The
final payment delivered to the Certificateholders on the Termination Date pursuant to the procedures set forth in Section
9.01(b).

Total Transfer Amount: 
For any Distribution Date and for any Undercollateralized Group, an amount equal to the sum of the Interest Transfer Amount and the
Principal Transfer Amount for such Undercollateralized Group.

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

Transferee: Any Person who
is acquiring by Transfer any Ownership Interest in a Residual Certificate.

Transferee Affidavit and Agreement: An affidavit and agreement in the form attached hereto as Exhibit J.

Trust: WaMu Mortgage
Pass-Through Certificates Series 2004-CB3 Trust, a Delaware statutory trust, created pursuant to this Agreement.

Trustee: Citibank, N.A., or
its successor-in-interest as provided in Section 8.09, or any successor trustee appointed as herein provided.

Uncollected Interest: With
respect to any Distribution Date for any Mortgage Loan on which a Payoff was made by a Mortgagor during the related Payoff Period,
except for Payoffs received during the period from the first through the 14th day of the month of such Distribution Date, an amount
equal to one month’s interest at the applicable Pass-Through Rate on such Mortgage Loan less the amount of interest actually
paid by the Mortgagor with respect to such Payoff.

Uncompensated Interest Shortfall: With respect to a Loan Group, for any Distribution Date, the sum of (i) the aggregate Relief Act Shortfall for such
Distribution Date with respect to the Mortgage Loans in such Loan Group, (ii) aggregate Curtailment Shortfall for such Distribution
Date with respect to the Mortgage Loans in such Loan Group and (iii) the excess, if any, of (a) aggregate Uncollected Interest for
such Distribution Date with respect to the Mortgage Loans in such Loan Group over (b) Compensating Interest for such Distribution
Date with respect to the Mortgage Loans in such Loan Group.

Uncompensated Interest Shortfall for Loan Group I shall be allocated
to the Group I Certificates and the portions of the Class C-X and Class B Certificates that derive their Interest Distribution
Amounts from the Group I Loans, pro rata according to the amount of interest accrued but unpaid on each such Class or portion
thereof, in reduction thereof.

Uncompensated Interest Shortfall for Loan Group II shall be allocated
to the Group II Certificates and the portions of the Class C-X and Class B Certificates that derive their Interest Distribution
Amounts from the Group II Loans, pro rata according to the amount of interest accrued but unpaid on each such Class or portion
thereof, in reduction thereof.

 

55

 

 

Uncompensated Interest Shortfall for Loan Group III shall be allocated
to the Group III Certificates and the portions of the Class C-X and Class B Certificates that derive their Interest Distribution
Amounts from the Group III Loans, pro rata according to the amount of interest accrued but unpaid on each such Class or portion
thereof, in reduction thereof.

Uncompensated Interest Shortfall for Loan Group IV shall be allocated
to the Group IV Certificates and the portions of the Class C-X and Class B Certificates that derive their Interest Distribution
Amounts from the Group IV Loans, pro rata according to the amount of interest accrued but unpaid on each such Class or portion
thereof, in reduction thereof.

The aggregate of Uncompensated Interest Shortfall for Loan Group I and
Loan Group IV shall be allocated to the Class C-X-M, Class C-Y-1 and Class C-Z-1 Regular Interests, pro rata according to the
amount of interest accrued but unpaid on each such Class, in reduction thereof.

Uncompensated Interest Shortfall for Loan Group II shall be allocated
to the Class C-X-M, Class C-Y-2 and Class C-Z-2 Regular Interests, pro rata according to the amount of interest accrued but unpaid
on each such Class, in reduction thereof.

Uncompensated Interest Shortfall for Loan Group III shall be allocated
to the Class C-X-M, Class C-Y-3 and Class C-Z-3 Regular Interests, pro rata according to the amount of interest accrued but unpaid
on each such Class, in reduction thereof.

Undercollateralized Group: For any Distribution Date, Loan Group I, if immediately prior to such Distribution Date the Class I-A Principal
Balance is greater than the aggregate Principal Balance of the Group I Loans (less the applicable Class I-P Fraction thereof with
respect to each Class I-P Mortgage Loan); for any Distribution Date, Loan Group II, if immediately prior to such Distribution Date
the Class II-A Principal Balance is greater than the aggregate Principal Balance of the Group II Loans; for any Distribution Date,
Loan Group III, if immediately prior to such Distribution Date the aggregate Class Principal Balance of the Group III-A and
Residual Certificates is greater than the aggregate Principal Balance of the Group III Loans (less the applicable Class III-P
Fraction thereof with respect to each Class III-P Mortgage Loan); and for any Distribution Date, Loan Group IV, if immediately
prior to such Distribution Date the Class IV-A Principal Balance is greater than the aggregate Principal Balance of the Group IV
Loans.

Underwriter: WaMu Capital
Corp.

Underwriting Standards: The underwriting standards of the Company, Washington Mutual Bank, FA
or Washington Mutual Bank, a Washington state chartered savings bank, as applicable.

Uninsured Cause: Any cause
of damage to a Mortgaged Property, the cost of the complete restoration of which is not fully reimbursable under the hazard
insurance policies required to be maintained pursuant to Section 3.07.

U.S. Person: A citizen or
resident of the United States, a corporation, partnership or other entity created or organized in or under the laws of the United
States, any state thereof or the District of Columbia, or an estate or trust that is subject to U.S. federal income tax regardless
of the source of its income.

 

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VA: The Department of
Veterans Affairs, formerly known as the Veterans Administration, or any successor thereto.

Withdrawal Date: Any day
during the period commencing on the 18th day of the month of the related Distribution Date (or if such day is not a Business Day,
the immediately preceding Business Day) and ending on the last Business Day prior to the 21st day of the month of such Distribution
Date. The “related Due Date” for any Withdrawal Date is the Due Date immediately preceding the related
Distribution Date.

ARTICLE II

Creation of the Trust; Conveyance of the Mortgage Pool Assets, REMIC I Regular Interests and REMIC II Regular Interests; REMIC
Election and Designations; Original Issuance of Certificates

Section
2.01.         Creation of the Trust.  The Trust is hereby created and shall be known as “WaMu
Mortgage Pass-Through Certificates Series 2004-CB3 Trust”. The purpose of the Trust is, and the Trust shall have the power
and authority, to engage in the following activities, all as provided by and subject to the terms of this Agreement:

(i)            to acquire, hold, lease, manage, administer, control,
invest, reinvest, operate and/or transfer the Mortgage Pool Assets and the REMIC II Assets;

(ii)           to issue the REMIC I Regular Interests, the Class R-1 and
Class R-2 Residual Interests and the Certificates;

(iii)          to make distributions to the REMIC I Regular Interests and the
Certificates; and

(iv)          to engage in such other activities, including entering into
agreements, as are described in or required by the terms of this Agreement or as are necessary, suitable or convenient to
accomplish the foregoing or incidental thereto.

Citibank,
N.A. is hereby appointed as a trustee of the Trust, to have all the rights, duties and obligations of the Trustee with respect to
the Trust expressly set forth hereunder, and Citibank, N.A. hereby accepts such appointment and the Trust created hereby. 
Christiana Bank & Trust Company is hereby appointed as a Delaware trustee of the Trust, to have all the rights, duties and
obligations of the Delaware Trustee with respect to the Trust hereunder, and Christiana Bank & Trust Company hereby accepts
such appointment and the Trust created hereby.  It is the intention of the Company, the Trustee and the Delaware Trustee that
the Trust constitute a statutory trust under the Statutory Trust Statute, that this Agreement constitute the governing instrument
of the Trust, and that this Agreement amend and restate the Original Trust Agreement.  The parties hereto acknowledge and
agree that, prior to the execution and delivery hereof, the Delaware Trustee has filed the Certificate of Trust.  The parties
hereto acknowledge that the Trust includes four separate pools of mortgage loans (referred to herein as Loan Groups), and that the
assets of each Loan Group are available to make payments to the holders of Certificates as provided in the definitions of
“REMIC I Distribution Amount” and “REMIC II Distribution Amount,” Section 4.01 and Section 4.04
hereof.

 

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The assets of the Trust shall remain in the custody of the Trustee, on
behalf of the Trust, and shall be owned by the Trust except as otherwise expressly set forth herein.  Moneys to the credit of
the Trust shall be held by the Trustee and invested as provided herein.  All assets received and held in the Trust will not be
subject to any right, charge, security interest, lien or claim of any kind in favor of either of Citibank, N.A. or Christiana Bank
& Trust Company in its own right, or any Person claiming through it.  Neither the Trustee nor the Delaware Trustee, on
behalf of the Trust, shall have the power or authority to transfer, assign, hypothecate, pledge or otherwise dispose of any of the
assets of the Trust to any Person, except as permitted herein.  No creditor of a beneficiary of the Trust, of the Trustee, of
the Delaware Trustee, of the Master Servicer or of the Company shall have any right to obtain possession of, or otherwise exercise
legal or equitable remedies with respect to, the property of the Trust, except in accordance with the terms of this
Agreement.

On the Closing Date, the Company shall deposit in the Certificate
Account the amount of $8,446.88 representing one month’s interest with respect to Mortgage Loans which do not have a Due Date
until October 2004.

Section 2.02.        
Restrictions on Activities of the Trust. Notwithstanding any other
provision of this Agreement and any provision of law that otherwise so empowers the Trust, so long as any Certificates are
outstanding, the Trust shall not, and none of the Trustee, the Delaware Trustee, the Company or the Master Servicer shall knowingly
cause the Trust to, do any of the following:

(i)            engage in any business or activity other than those
set forth in Section 2.01;

(ii)           incur or assume any indebtedness except for such
indebtedness that may be incurred by the Trust in connection with the execution or performance of this Agreement or any other
agreement contemplated hereby;

(iii)          guarantee or otherwise assume liability for the debts of any
other party;

(iv)          do any act in contravention of this Agreement or any other
agreement contemplated hereby to which the Trust is a party;

(v)           do any act which would make it impossible to carry on the
ordinary business of the Trust;

(vi)          confess a judgment against the Trust;

(vii)         possess or assign the assets of the Trust for other than a Trust
purpose;

(viii)        cause the Trust to lend any funds to any entity, except as contemplated by
this Agreement; or

 

58

 

 

(ix)           change the purposes and powers of the Trust from those set
forth in this Agreement.

Section 2.03.        
Separateness Requirements. Notwithstanding any other provision of this
Agreement and any provision of law that otherwise so empowers the Trust, so long as any Certificates are outstanding, the Trust
shall perform the following:

(i)            except as expressly permitted by this Agreement,
maintain its books, records, bank accounts and files separate from those of any other Person;

(ii)           except as expressly permitted by this Agreement, maintain
its assets in its own separate name and in such a manner that it is not costly or difficult to segregate, identify, or ascertain
such assets;

(iii)          consider the interests of the Trust's creditors in connection
with its actions;

(iv)          hold itself out to creditors and the public as a legal entity
separate and distinct from any other Person and correct any known misunderstanding regarding its separate identity and refrain from
engaging in any activity that compromises the separate legal identity of the Trust;

(v)           prepare and maintain separate records, accounts and
financial statements in accordance with generally accepted accounting principles, consistently applied, and susceptible to
audit.  To the extent it is included in consolidated financial statements or consolidated tax returns, such financial
statements and tax returns will reflect the separateness of the respective entities and indicate that the assets of the Trust will
not be available to satisfy the debts of any other Person;

(vi)          allocate and charge fairly and reasonably any overhead shared
with any other Person;

(vii)         transact all business with affiliates on an arm's-length basis and
pursuant to written, enforceable agreements;

(viii)        conduct business solely in the name of the Trust.  In that regard all
written and oral communications of the Trust, including, without limitation, letters, invoices, purchase orders and contracts,
shall be made solely in the name of the Trust;

(ix)           maintain a separate office through which its business shall
be conducted, provided that such office may be an office of the Trustee, which office shall not be shared with the Company or any
affiliates of the Company;

(x)            in the event that services have been or are in the
future performed or paid by any Person on behalf of the Trust (other than the Trustee, the Delaware Trustee, the Master Servicer or
the Tax Matters Person as permitted herein), reimburse such Person, as applicable, for the commercially reasonable value of such
services or expenses provided or incurred by such Person.  Accordingly, (i) the Trust shall reimburse such Person, as
applicable, for the commercially reasonable value of such services or expenses provided or incurred by such Person; (ii) to the
extent invoices for such services are not allocated and separately billed to the Trust, the amount thereof that was or is to be
allocated and separately billed to the Trust was or will be reasonably related to the services provided to the Trust; and (iii) any
other allocation of direct, indirect or overhead expenses for items shared between the Trust and any other Person, was or will be,
to the extent practicable, allocated on the basis of actual use or value of services rendered or otherwise on a basis reasonably
related to actual use or the value of services rendered;

 

59

 

 

(xi)           except as expressly permitted by this Agreement, not
commingle its assets or funds with those of any other Person;

(xii)          except as expressly permitted by this Agreement, not assume,
guarantee, or pay the debts or obligations of any other Person;

(xiii)         except as expressly permitted by this Agreement, not pledge its
assets for the benefit of any other Person;

(xiv)        not hold out its credit or assets as being available to satisfy the
obligations of others;

(xv)         pay its liabilities only out of its funds;

(xvi)        pay the salaries of its own employees, if any; and

(xvii)       cause the agents and other representatives of the Trust, if any, to act at all
times with respect to the Trust consistently and in furtherance of the foregoing.

None of the Trustee, the Delaware Trustee, the Company or the Master
Servicer shall  take any action that is inconsistent with the purposes of the Trust or Section 2.02 or Section 2.03. 
Neither the Company nor the Master Servicer shall direct the Trustee or the Delaware Trustee to take any action that is
inconsistent with the purposes of the Trust or Section 2.02 or Section 2.03.

Section 2.04.        
Conveyance of Mortgage Pool Assets; Security Interest.

Concurrently with the execution and delivery hereof, the Company does
hereby irrevocably sell, transfer, assign, set over and otherwise convey to the Trust, without recourse, all the Company’s
right, title and interest in and to the Mortgage Pool Assets (such transfer and assignment by the Company to be referred to herein
as the “Conveyance”).

It is the express intent of the parties hereto that the Conveyance of
the Mortgage Pool Assets to the Trust by the Company as provided in this Section 2.04 be, and be construed as, an absolute sale of
the Mortgage Pool Assets. It is, further, not the intention of the parties that such Conveyance be deemed the grant of a security
interest in the Mortgage Pool Assets by the Company to the Trust to secure a debt or other obligation of the Company. However, in
the event that, notwithstanding the intent of the parties, the Mortgage Pool Assets are held to be the property of the Company, or
if for any other reason this Agreement is held or deemed to create a security interest in the Mortgage Pool Assets, then

 

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(a)           this
Agreement shall constitute a security agreement;

(b)           the
conveyance provided for in this Section 2.04 shall be deemed to be a grant by the Company to the Trust of, and the Company hereby
grants to the Trust, to secure all of the Company’s obligations hereunder, a security interest in all of the Company’s
right, title, and interest, whether now owned or hereafter acquired, in and to:

(I)            The Mortgage Pool Assets;

(II)           All accounts, chattel paper, deposit accounts, documents,
general intangibles, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, and
other minerals, consisting of, arising from, or relating to, any of the foregoing; and

(III)         All proceeds of the foregoing.

The Company shall file such financing statements, and the Company and
the Trustee acting on behalf of the Trust at the direction of the Company shall, to the extent consistent with this Agreement, take
such other actions as may be necessary to ensure that, if this Agreement were found to create a security interest in the Mortgage
Pool Assets, such security interest would be a perfected security interest of first priority under applicable law and will be
maintained as such throughout the term of the Agreement. In connection herewith, the Trust shall have all of the rights and
remedies of a secured party and creditor under the Uniform Commercial Code as in force in the relevant jurisdiction.

Section 2.05.         Delivery of Mortgage Files.

In connection with the sale, transfer and assignment referred to in
Section 2.04, the Company, concurrently with the execution and delivery hereof, does deliver to, and deposit with, or cause to be
delivered to and deposited with, the Trustee or Custodian the Mortgage Files, which shall at all times be identified in the records
of the Trustee or the Custodian, as applicable, as being held by or on behalf of the Trust.

Concurrently with the execution and delivery hereof, the Company shall
cause to be filed the UCC assignment or amendment referred to in clause (Y)(vii) of the definition of “Mortgage File.”
 In connection with its servicing of Cooperative Loans, the Master Servicer will use its best efforts to file timely
continuation statements, if necessary, with regard to each financing statement and assignment relating to Cooperative
Loans.

In instances where the original recorded Mortgage or any intervening
assignment thereof (recorded or in recordable form) required to be included in the Mortgage File pursuant to the definition of
“Mortgage File” relating to a Mortgage Loan is not included in the Mortgage File delivered to the Trustee (or the
Custodian) prior to or concurrently with the execution and delivery hereof (due to a delay on the part of the recording office),
the Company shall deliver to the Trustee (or the Custodian) a fully legible reproduction (which may be in electronic form) of the
original Mortgage or intervening assignment provided that the originator, the related Lender or the escrow or title company which
provided closing services in connection with such Mortgage Loan certifies on the face of such reproduction(s) or copy as follows:
“Certified true and correct copy of original which has been transmitted for recordation.” For purposes hereof,
transmitted for recordation means having been mailed or otherwise delivered for recordation to the appropriate authority. In all
such instances, the Company shall transmit the original recorded Mortgage and any intervening assignments with evidence of
recording thereon (or a copy of such original Mortgage or intervening assignment certified by the applicable recording office)
(which may be in electronic form) (collectively, “Recording Documents”) to the Trustee (or the Custodian) within
270 days after the execution and  

 

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delivery hereof. In instances where, due to a delay on the part of the recording office where any
such Recording Documents have been delivered for recordation, the Recording Documents cannot be delivered to the Trustee within 270
days after execution and delivery hereof, the Company shall deliver to the Trustee within such time period a certificate (a
“Company Officer’s Certificate”) signed by the Chairman of the Board, President, any Vice President or
Treasurer of the Company stating the date by which the Company expects to receive such Recording Documents from the applicable
recording office. In the event that Recording Documents have still not been received by the Company and delivered to the Trustee
(or the Custodian) by the date specified in its previous Company Officer’s Certificate delivered to the Trustee, the Company
shall deliver to the Trustee by such date an additional Company Officer’s Certificate stating a revised date by which the
Company expects to receive the applicable Recording Documents. This procedure shall be repeated until the Recording Documents have
been received by the Company and delivered to the Trustee (or the Custodian).

For Mortgage Loans for which the Company has received a Payoff after
the Cut-Off Date and prior to the date of execution and delivery hereof, the Company, in lieu of delivering the above documents,
herewith delivers to the Trustee a certification of a Servicing Officer of the nature set forth in Section 3.10.

The Trustee is authorized, with the Master Servicer’s consent,
to appoint any bank or trust company approved by each of the Company and the Master Servicer as Custodian of the documents or
instruments referred to in this Section 2.05 or in Section 2.10, and to enter into a Custodial Agreement for such purpose;
provided, however, that the Trustee shall be and remain liable for the acts of any such Custodian only to the extent that it is
responsible for its own acts hereunder.  Any documents delivered by the Company or the Master Servicer to the Custodian, shall
be deemed to have been delivered to the Trustee for all purposes hereunder; and any documents held by the Custodian, shall be
deemed to be held by the Trustee for all purposes hereunder. There shall be a written Custodial Agreement between the Trustee and
each Custodian. Each Custodial Agreement shall contain an acknowledgment by the Custodian that all Mortgage Pool Assets, Mortgage
Files, and documents and property held by it at any time are held by it for the benefit of the Trust.  Pursuant to the Initial
Custodial Agreement, the Initial Custodian shall perform responsibilities of the Trustee on the Trustee’s behalf with respect
to the delivery, receipt, examination and custody of the Mortgage Files related to the Mortgage Loans identified in the Initial
Custodial Agreement, as provided therein.

On or promptly after the Closing Date, the Master Servicer shall cause
the MERS® System to indicate that each MERS Loan, if any, has been assigned to “Citibank, N.A., as Trustee, without
recourse” or to “WaMu Mortgage Pass-Through Certificates Series 2004-CB3 Trust, without recourse” by including in
the MERS® System computer files (a) the code necessary to identify the Trustee and (b) the code necessary to identify the
series of the Certificates issued in connection with such Mortgage Loans; provided, however, that in the event the Company
acquired such Mortgage Loans from an affiliate of the Company, then the Master Servicer need not cause the MERS® System to
indicate such assignment.  The Master Servicer shall not alter the codes referenced in this paragraph with respect to any MERS
Loan during the term of this Agreement except in connection with an assignment of such MERS Loan or de-registration thereof from
the MERS® System in accordance with the terms of this Agreement.

 

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Section 2.06.         REMIC Election for REMIC I.

The Tax Matters Person, shall, on behalf of REMIC I, elect to treat
REMIC I as a REMIC within the meaning of Section 860D of the Code and, if necessary, under applicable state laws. Such election
shall be included in the Form 1066 and any appropriate state return to be filed on behalf of REMIC I for its first taxable
year.

The Closing Date is hereby designated as the “startup day”
of REMIC I within the meaning of Section 860G(a)(9) of the Code.

The regular interests (as set forth in the table contained in the
Preliminary Statement hereto) relating to REMIC I are hereby designated as “regular interests” in REMIC I for purposes
of Section 860G(a)(1) of the Code. The Class R-1 Residual Interest is hereby designated as the sole class of “residual
interest” in REMIC I for purposes of Section 860G(a)(2) of the Code. The REMIC I Regular Interests and the Class R-1 Residual
Interest shall together be deemed to be a separate series of beneficial interests in the assets of the Trust consisting of the
REMIC I Assets pursuant to Section 3806(b)(2) of the Statutory Trust Statute.

The parties intend that the affairs of REMIC I shall constitute, and
that the affairs of  REMIC I shall be conducted so as to qualify REMIC I as a REMIC. In furtherance of such intention, the Tax
Matters Person shall, on behalf of REMIC I: (a) prepare and file, or cause to be prepared and filed, a federal tax return using a
calendar year as the taxable year and using an accrual method of accounting for REMIC I when and as required by the REMIC
Provisions and other applicable federal income tax laws; (b) make an election, on behalf of the trust, for REMIC I to be treated as
a REMIC on the federal tax return of  REMIC I for its first taxable year, in accordance with the REMIC Provisions; (c) prepare
and forward, or cause to be prepared and forwarded, to the Holders of the REMIC I Regular Interests and the Class R-1 Residual
Interest and the Trustee, all information reports as and when required to be provided to them in accordance with the REMIC
Provisions, and make available the information necessary for the application of Section 860E(e) of the Code; (d) conduct the
affairs of REMIC I at all times that any REMIC I Regular Interests are outstanding so as to maintain the status of REMIC I as a
REMIC under the REMIC Provisions; (e) not knowingly or intentionally take any action or omit to take any action that would cause
the termination of the REMIC status of REMIC I; and (f) pay the amount of any federal prohibited transaction penalty taxes imposed
on REMIC I when and as the same shall be due and payable (but such obligation shall not prevent the Company or any other
appropriate person from contesting any such tax in appropriate proceedings and shall not prevent the Company from withholding
payment of such tax, if permitted by law, pending the outcome of such proceedings); provided, that the Company shall be entitled to
be indemnified by REMIC I for any such prohibited transaction penalty taxes if the Company’s failure to exercise reasonable
care was not the primary cause of the imposition of such prohibited transaction penalty taxes.

 

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The Trustee and the Master Servicer shall promptly provide the Company
with such information in the possession of the Trustee or the Master Servicer, respectively, as the Company may from time to time
request for the purpose of enabling the Company to prepare tax returns.  If so requested by the Tax Matters Person, the
Trustee shall sign tax returns on behalf of the REMICs.

In the event that a Mortgage Loan is discovered to have a defect
which, had such defect been discovered before the startup day, would have prevented such Mortgage Loan from being a
“qualified mortgage” within the meaning of Section 860G(a)(3) of the Code, and the Company does not repurchase such
Mortgage Loan within 90 days of such date, the Master Servicer, on behalf of the Trustee, shall within 90 days of the date such
defect is discovered sell such Mortgage Loan at such price as the Master Servicer in its sole discretion, determines to be the
greatest price that will result in the purchase thereof within 90 days of such date, unless the Master Servicer delivers to the
Trustee an Opinion of Counsel to the effect that continuing to hold such Mortgage Loan will not adversely affect the status of the
electing portion of REMIC I as a REMIC for federal income tax purposes.

In the event that any tax is imposed on “prohibited
transactions” of REMIC I as defined in Section 860F of the Code and not paid by the Company pursuant to clause (f) of the
third preceding paragraph, such tax shall be charged against amounts otherwise distributable to the Class R-1 Residual Interest.
Notwithstanding anything to the contrary contained herein, the Trustee is hereby authorized to retain from amounts otherwise
distributable to the Class R-1 Residual Interest on any Distribution Date sufficient funds to reimburse the Tax Matters Person (or
any agent therefor appointed in accordance with the definition of “Tax Matters Person” herein, if applicable), for the
payment of such tax (upon the written request of the Tax Matters Person or its agent, to the extent reimbursable, and to the extent
that the Tax Matters Person or its agent has not been previously reimbursed therefor).

Section
2.07.         Acceptance by Trustee. The Trustee acknowledges receipt (or with respect to any Mortgage Loan
subject to a Custodial Agreement, receipt by the Custodian thereunder) on behalf of the Trust of the documents (or certified copies
thereof as specified in Section 2.05) referred to in Section 2.05 above, but without having made the review required to be made
within 45 days pursuant to this Section 2.07. The Trustee acknowledges that all Mortgage Pool Assets, Mortgage Files, and related
documents and property held by it at any time are held by it as Trustee of the Trust for the benefit of the Trust as holder of the
REMIC I Regular Interests and the Class R-1 Residual Interest. The Trustee agrees, for the benefit of the Trust, to review (or,
with respect to the Mortgage Loans identified in the Initial Custodial Agreement, cause the Initial Custodian to review) each
Mortgage File within 45 days after the Closing Date and deliver to the Company a certification (or, with respect to the Mortgage
Loans identified in the Initial Custodial Agreement, cause the Initial Custodian to deliver to the Company a certification, which
satisfies the applicable requirements of this Agreement) in the form attached as Exhibit M hereto, to the effect that, except as
noted, all documents required (in the case of instruments described in clauses (X)(iv) and (Y)(ix) of the definition of
“Mortgage File,” known by the Trustee to be required) pursuant to the definition of “Mortgage File” and
Section 2.05 have been executed and received, and that such documents relate to the Mortgage Loans identified in the Mortgage Loan
Schedule. In performing such review, the Trustee may rely upon the purported genuineness and due execution of any such document,
and on the purported genuineness of any signature thereon. The Trustee shall not be required to make any independent examination of
any documents contained in each Mortgage File beyond the review specifically required herein. The Trustee makes no representations
as to: (i) the validity, legality, enforceability or genuineness of any of the Mortgage Loans identified on the Mortgage Loan
Schedule, or (ii) the collectability, insurability, effectiveness or suitability of any Mortgage Loan. If the  

 

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Trustee finds any
document or documents constituting a part of a Mortgage File not to have been executed or received, or to be unrelated to the
Mortgage Loans identified in the Mortgage Loan Schedule, the Trustee shall promptly so notify the Company. The Company hereby
covenants and agrees that, if any such defect cannot be corrected or cured, the Company shall, not later than 60 days after the
Trustee’s notice to it respecting such defect, within the three-month period commencing on the Closing Date (or within the
two-year period commencing on the Closing Date if the related Mortgage Loan is a “defective obligation” within the
meaning of Section 860G(a)(4)(B)(ii) of the Code and Treasury Regulation Section 1.860G-2(f)), either (i) repurchase the related
Mortgage Loan from the Trust at the Purchase Price, or (ii) substitute for any Mortgage Loan to which such defect relates a
different mortgage loan (a “Substitute Mortgage Loan”) which is a “qualified replacement mortgage”
(as defined in the Code) and, (iii) after such three-month or two-year period, as applicable, the Company shall repurchase the
Mortgage Loan from the Trust at the Purchase Price but only if the Mortgage Loan is in default or default is, in the judgment of
the Company, reasonably imminent. If such defect would cause the Mortgage Loan to be other than a “qualified mortgage”
(as defined in the Code), then notwithstanding the previous sentence or any provision in the definition of “Purchase
Price”, the repurchase or substitution must occur within the sooner of (i) 90 days from the date the defect was discovered or
(ii) in the case of substitution, two years from the Closing Date.

Such Substitute Mortgage Loan shall mature no later than, and not more
than two years earlier than, have a principal balance and Loan-to-Value Ratio equal to or less than, and have a Pass-Through Rate
on the date of substitution equal to or no more than 1 percentage point greater than the Mortgage Loan being substituted for. If
the aggregate of the principal balances of the Substitute Mortgage Loans substituted for a Mortgage Loan is less than the Principal
Balance of such Mortgage Loan, the Company shall pay the difference in cash, together with unpaid accrued interest, if any, on the
difference between the aggregate of the principal balances of the Substitute Mortgage Loans and the Principal Balance of such
Mortgage Loan during the calendar month in which the substitution occurs to the last day of such month at a rate equal to the
applicable Pass-Through Rate, to the Trustee for deposit into the Certificate Account, and such payment by the Company shall be
treated in the same manner as proceeds of the repurchase by the Company of a Mortgage Loan pursuant to this Section 2.07.
Furthermore, such Substitute Mortgage Loan shall otherwise have such characteristics so that the representations and warranties of
the Company set forth in Section 2.08 hereof would not have been incorrect had such Substitute Mortgage Loan originally been a
Mortgage Loan, and the Company shall be deemed to have made such representations and warranties as to such Substitute Mortgage
Loan. A Substitute Mortgage Loan may be substituted for a defective Mortgage Loan whether or not such defective Mortgage Loan is
itself a Substitute Mortgage Loan.  Notwithstanding anything herein to the contrary, each Substitute Mortgage Loan shall be
deemed to have the same Pass-Through Rate as the Mortgage Loan for which it was substituted.

 

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The Purchase Price for each purchased or repurchased Mortgage Loan
shall be deposited by the Company in the Certificate Account and, upon receipt by the Trustee of written notification of such
deposit signed by a Servicing Officer, the Trustee shall (or, if applicable, shall cause the Custodian to) release to the Company
the related Mortgage File and shall execute and deliver (or, in the event that the Mortgage Files are held in the name of the
Custodian, shall cause the Custodian to execute and deliver) on behalf of the Trust such instruments of transfer or assignment, in
each case without recourse, as shall be necessary to vest in the Company or its designee or assignee title to any Mortgage Loan
released pursuant hereto. In furtherance of the foregoing, if such Mortgage Loan is a MERS Loan and as a result of the repurchase
thereof such Mortgage Loan shall cease to be serviced by a servicer that is a member of MERS or if the Company or its assignee
shall so request, the Master Servicer shall cause MERS to execute and deliver an assignment of the Mortgage in recordable form from
MERS to the Company or its assignee and shall cause the Mortgage Loan to be removed from registration on the MERS® System in
accordance with MERS’ rules and procedures. The obligation of the Company to repurchase or substitute any Mortgage Loan as to
which such a defect in a constituent document exists shall constitute the sole remedy respecting such defect available to the Trust
or the Holders of the REMIC I Regular Interests or the Class R-1 Residual Interest.

Section
2.08.         Representations and Warranties of the Company Concerning the Mortgage Loans. With respect to
the conveyance of the Mortgage Loans provided for in Section 2.04 herein, the Company hereby represents and warrants to the Trust
that as of the Cut-Off Date unless otherwise indicated:

(i)                  The information set forth in the Mortgage Loan Schedule was true and correct in all material respects at the date or dates
respecting which such information is furnished;

(ii)                As of the Closing Date, each Mortgage relating to a Mortgage Loan that is not a Cooperative Loan is a valid and
enforceable (subject to Section 2.08(xvi)) first lien on an unencumbered estate in fee simple or (if the related Mortgage Loan is
secured by the interest of the Mortgagor as a lessee under a ground lease) leasehold estate in the related Mortgaged Property
subject only to (a) liens for current real property taxes and special assessments; (b) covenants, conditions and restrictions,
rights of way, easements and other matters of public record as of the date of recording such Mortgage, such exceptions appearing of
record being acceptable to mortgage lending institutions generally or specifically reflected in the appraisal obtained in
connection with the origination of the Mortgage Loan; (c) exceptions set forth in the title insurance policy relating to such
Mortgage, such exceptions being acceptable to mortgage lending institutions generally; and (d) other matters to which like
properties are commonly subject which do not materially interfere with the benefits of the security intended to be provided by the
Mortgage;

(iii)               Immediately upon the transfer and assignment contemplated herein, the Trust shall have good title to, and will be the sole
legal owner of, each Mortgage Loan, free and clear of any encumbrance or lien (other than any lien under this
Agreement);

 

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(iv)              As of
the day prior to the Cut-Off Date, all payments due on each Mortgage Loan had been made and no Mortgage Loan had been delinquent
(i.e., was more than 30 days past due) more than once in the preceding 12 months and any such delinquency lasted for no more than
30 days;

(v)                As of the Closing Date, there is no late assessment for delinquent taxes outstanding against any Mortgaged
Property;

(vi)              As of
the Closing Date, there is no offset, defense or counterclaim to any Mortgage Note, including the obligation of the Mortgagor to
pay the unpaid principal or interest on such Mortgage Note except to the extent that the Buydown Agreement for a Buydown Loan
forgives certain indebtedness of a Mortgagor;

(vii)             As of the
Closing Date, each Mortgaged Property is free of damage and in good repair, ordinary wear and tear excepted;

(viii)           Each Mortgage Loan at
the time it was made complied with all applicable local, state and federal laws, including, without limitation, usury, equal credit
opportunity, disclosure and recording laws, and predatory and abusive lending laws applicable to the originating
lender;

(ix)              Each
Mortgage Loan was originated by a savings association, savings bank, credit union, insurance company, or similar institution which
is supervised and examined by a federal or state authority or by a mortgagee approved by the FHA and will be serviced by an
institution which meets the servicer eligibility requirements established by the Company;

(x)                As of the Closing Date, each Mortgage Loan that is not a Cooperative Loan is covered by an ALTA form or CLTA form of
mortgagee title insurance policy or other form of policy of insurance which has been issued by, and is the valid and binding
obligation of, a title insurer which, as of the origination date of such Mortgage Loan, was qualified to do business in the state
in which the related Mortgaged Property is located. Such policy insures the originator of the Mortgage Loan, its successors and
assigns as to the first priority lien of the Mortgage in the original principal amount of the Mortgage Loan subject to the
exceptions set forth in such policy. Such policy is in full force and effect and inures to the benefit of the Trust upon the
consummation of the transactions contemplated by this Agreement and no claims have been made under such policy, and no prior holder
of the related Mortgage, including the Company, has done, by act or omission, anything which would impair the coverage of such
policy;

(xi)              Each
Mortgage Loan with a Loan-to-Value Ratio as of the Cut-Off Date in excess of 80% was covered by a Primary Insurance Policy or an
FHA insurance policy or a VA guaranty, and such policy or guaranty is valid and remains in full force and effect;

(xii)             As of the
Closing Date, all policies of insurance required by this Agreement or by a Selling and Servicing Contract  have been validly
issued and remain in full force and effect, including such policies covering the Company, the Master Servicer or any
Servicer;

 

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(xiii)           As of the Closing Date,
each insurer issuing a Primary Insurance Policy holds a rating acceptable to the Rating Agencies;

(xiv)           Each Mortgage
(exclusive of any riders thereto) was documented by appropriate Fannie Mae/Freddie Mac mortgage instruments in effect at the time
of origination, or other instruments approved by the Company;

(xv)            As of the Closing
Date, the Mortgaged Property securing each Mortgage relating to a Mortgage Loan that is not a Cooperative Loan is improved with a
one- to four-family dwelling unit, including units in a duplex, triplex, fourplex, condominium project, townhouse, a planned unit
development or a de minimis planned unit development;

(xvi)           As of the Closing Date,
each Mortgage and Mortgage Note is the legal, valid and binding obligation of the maker thereof and is enforceable in accordance
with its terms, except only as such enforcement may be limited by laws affecting the enforcement of creditors’ rights
generally and principles of equity;

(xvii)         As of the date of origination, as
to Mortgaged Properties which are units in condominiums or planned unit developments, all of such units met the applicable
Underwriting Standards, are located in a condominium or planned unit development projects which have received Fannie Mae or Freddie
Mac approval, or are approvable by Fannie Mae or Freddie Mac or have otherwise been approved by the Company;

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

(xix)           Based solely on
representations of the Mortgagors obtained at the origination of the related Mortgage Loans, none of the Group I Loans will be
secured by owner occupied Mortgaged Properties which are the primary residences of the related Mortgagors, none of the Group I
Loans will be secured by owner occupied Mortgaged Properties which were second or vacation homes of the Mortgagors and 100% (by
Principal Balance) of the Group I Loans will be secured by Mortgaged Properties which were investor properties of the related
Mortgagors; none of the Group II Loans will be secured by owner occupied Mortgaged Properties which are the primary residences of
the related Mortgagors, none of the Group II Loans will be secured by owner occupied Mortgaged Properties which were second or
vacation homes of the Mortgagors and 100% (by Principal Balance) of the Group II Loans will be secured by Mortgaged Properties
which were investor properties of the related Mortgagors; none of the Group III Loans will be secured by owner occupied Mortgaged
Properties which are the primary residences of the related Mortgagors, none of the Group III Loans will be secured by owner
occupied Mortgaged Properties which were second or vacation homes of the Mortgagors and 100% (by Principal Balance) of the Group
III Loans will be secured by Mortgaged Properties which were investor properties of the related Mortgagors; none of the Group IV
Loans will be secured by owner occupied Mortgaged Properties which are the primary residences of the related Mortgagors, none of
the Group IV Loans will be secured by owner occupied Mortgaged Properties which were second or vacation homes of the Mortgagors and
100% (by Principal Balance) of the Group IV Loans will be secured by Mortgaged Properties which were investor properties of the
related Mortgagors;

 

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(xx)            Prior to
origination or refinancing, an appraisal of each Mortgaged Property was made by an appraiser on a form satisfactory to Fannie Mae
or Freddie Mac;

(xxi)           The Mortgage Loans have
been underwritten substantially in accordance with the applicable Underwriting Standards;

(xxii)         All of the Mortgage Loans have
due-on-sale clauses; however, the due on sale provisions may not be exercised at the time of a transfer if prohibited by
law;

(xxiii)        The Company used no adverse
selection procedures in selecting the Mortgage Loans from among the outstanding fixed-rate conventional mortgage loans purchased by
it which were available for inclusion in the Mortgage Pool and as to which the representations and warranties in this Section 2.08
could be made;

(xxiv)      
With respect to each Cooperative Loan, the Cooperative Stock that is pledged as security for the Cooperative Loan is held by a
person as a tenant-stockholder (as defined in Section 216 of the Code) in a cooperative housing corporation (as defined in Section
216 of the Code);

(xxv)        Each Cooperative Loan is secured by a valid, subsisting and enforceable
(except as such enforcement may be limited by laws affecting the enforcement of creditors’ rights generally and principles of
equity) perfected first lien and security interest in the related Cooperative Stock securing the related Mortgage Note, subject
only to (a) liens of the Cooperative for unpaid assessments representing the Mortgagor’s pro rata share of the
Cooperative’s payments for its blanket mortgage, current and future real property taxes, insurance premiums, maintenance fees
and other assessments to which like collateral is commonly subject, and (b) other matters to which like collateral is commonly
subject which do not materially interfere with the benefits of the security intended to be provided by the Security
Agreement;

(xxvi) With respect to any
Mortgage Loan as to which an affidavit has been delivered to the Trustee certifying that the original Mortgage Note is a Destroyed
Mortgage Note, if such Mortgage Loan is subsequently in default, the enforcement of such Mortgage Loan or of the related Mortgage
by or on behalf of the Trust will not be materially adversely affected by the absence of the original Mortgage Note (or portion
thereof, as applicable);

(xxvii)      Based upon an appraisal of the Mortgaged Property securing each Mortgage Loan,
approximately 94.02% (by Principal Balance) of the Group I Loans had a current Loan-to-Value Ratio less than or equal to 80%,
approximately 5.98% (by Principal Balance) of the Group I Loans had a current Loan-to-Value Ratio greater than 80% but less than or
equal to 95% and no Group I Loan had a current Loan-to-Value Ratio greater than 95%; approximately 88.71% (by Principal Balance) of
the Group II Loans had a current Loan-to-Value Ratio less than or equal to 80%, approximately 11.29% (by Principal Balance) of the
Group II Loans had a current Loan-to-Value Ratio greater than 80% but less than or equal to 95% and no Group II Loan had a current
Loan-to-Value Ratio greater than 95%; approximately 98.51% (by Principal Balance) of the Group III Loans had a current
Loan-to-Value Ratio less than or equal to 80%, approximately 1.47% (by Principal Balance) of the Group III Loans had a current
Loan-to-Value Ratio greater than 80% but less than or equal to 95% and no Group III Loan had a current Loan-to-Value Ratio greater
than 95%; approximately 96.90% (by Principal Balance) of the Group IV Loans had a current Loan-to-Value Ratio less than or equal to
80%, approximately 3.11% (by Principal Balance) of the Group IV Loans had a current Loan-to-Value Ratio greater than 80% but less
than or equal to 95% and no Group IV Loan had a current Loan-to-Value Ratio greater than 95%;

 

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(xxviii)     Approximately 54.27% (by Principal Balance) of the Group I Loans, approximately 51.37% (by
Principal Balance) of the Group II Loans, approximately 73.93% (by Principal Balance) of the Group III Loans, and approximately
72.46% (by Principal Balance) of the Group IV Loans were originated for the purpose of refinancing existing mortgage debt,
including cash-out refinancings; and approximately 31.05% (by Principal Balance) of the Group I Loans, approximately 48.64% (by
Principal Balance) of the Group II Loans, approximately 26.07% (by Principal Balance) of the Group III Loans, and approximately
27.55% (by Principal Balance) of the Group IV Loans were originated for the purpose of purchasing the Mortgaged
Property;

(xxix)       Not less than approximately 96.98%, 87.35%, 89.99% and 78.77% (by Principal
Balance) of the Group I Loans, Group II Loans, Group III Loans and Group IV Loans, respectively, were originated under full
documentation programs; provided, however, that this includes mortgage loans with less than full documentation when the
documentation requirement is established by the automated underwriting system of either Fannie Mae or Freddie Mac.

(xxx)        No Mortgage Loan is subject to the Home Ownership and Equity Protection Act
of 1994 or Section 226.32 of Regulation Z, is a “high-cost” loan or a “predatory” loan as defined under any
state or local law or regulation applicable to the originator of such Mortgage Loan or which would result in liability to the
purchaser or assignee of such Mortgage Loan under any predatory or abusive lending law, or, without limiting the generality of the
foregoing, is a “covered” loan under the laws of the states of California, Colorado or Ohio;

(xxxi)       No Mortgage Loan is a High Cost Loan or Covered Loan (as such terms are defined
in the Standard & Poor's LEVELS® Glossary in effect on the Closing Date, which is now Version 5.6 Revised, Appendix E,
applicable portions of which are attached hereto as Exhibit C), and no Mortgage Loan originated on or after October 1, 2002 through
March 6, 2003 is governed by the Georgia Fair Lending Act; and

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

It is understood and agreed that the representations and warranties
set forth in this Section 2.08 shall survive delivery of the respective Mortgage Files to the Trustee or the Custodian, as the case
may be, and shall continue throughout the term of this Agreement. Upon discovery by any of the Company, the Master  

 

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Servicer, the
Trustee or the Custodian of a breach of any of the foregoing representations and warranties which materially and adversely affects
the value of the related Mortgage Loans or the interests of the Trust in the related Mortgage Loans, the Company, the Master
Servicer, the Trustee or the Custodian, as the case may be, discovering such breach shall give prompt written notice to the others.
Any breach of the representation set forth in clauses (xxx) or (xxxi) of this Section 2.08 shall be deemed to materially and
adversely affect the value of the related Mortgage Loans or the interests of the Trust in the related Mortgage Loans. Within 90
days of its discovery or its receipt of notice of breach, the Company shall repurchase, subject to the limitations set forth in the
definition of “Purchase Price,” or substitute for the affected Mortgage Loan or Mortgage Loans or any property acquired
in respect thereof from the Trust, unless it has cured such breach in all material respects. After the end of the three-month
period beginning on the “start-up day,” any such substitution shall be made only if the Company provides to the Trustee
an Opinion of Counsel addressed to the Trust and the Trustee reasonably satisfactory to the Trustee that each Substitute Mortgage
Loan will be a “qualified replacement mortgage” within the meaning of Section 860G(a)(4) of the Code. Such substitution
shall be made in the manner and within the time limits set forth in Section 2.07. Any such repurchase by the Company shall be
accomplished in the manner and at the Purchase Price, if applicable, but shall not be subject to the time limits, set forth in
Section 2.07. It is understood and agreed that the obligation of the Company to provide such substitution or to make such
repurchase of any affected Mortgage Loan or Mortgage Loans or any property acquired in respect thereof as to which a breach has
occurred and is continuing shall constitute the sole remedy respecting such breach available to the Holders of the REMIC I Regular
Interests and the Class R-1 Residual Interest or the Trustee on behalf of the Holders of the REMIC I Regular Interests and the
Class R-1 Residual Interest.

Section
2.09.         Acknowledgment of Transfer of Mortgage Pool Assets. The Trustee hereby  acknowledges and
accepts on behalf of the Trust the transfer and assignment to the Trust of the Mortgage Pool Assets, but without having made the
review required to be made within 45 days pursuant to Section 2.07, and declares that as of the Closing Date it holds and shall
hold any documents constituting a part of the Mortgage Pool Assets, and the Mortgage Pool Assets, as Trustee in trust, upon the
trust herein set forth, for the use and benefit of all present and future Holders of the REMIC I Regular Interests and the Class
R-1 Residual Interest.  In connection therewith, as of the Closing Date, in exchange for the Mortgage Pool Assets, the Trustee
on behalf of the Trust does hereby issue to the Company the REMIC I Regular Interests and the Class R-1 Residual
Interest.

Section
2.10.         Conveyance of REMIC II Assets; Security Interest.  Concurrently with the execution and
delivery hereof, the Company does hereby irrevocably sell, transfer, assign, set over, and otherwise convey to the Trust, without
recourse, all the Company’s right, title and interest in and to the REMIC II Assets. Pursuant to Section 3818 of the
Statutory Trust Statute, the REMIC I Regular Interests shall not be cancelled and shall be held as treasury interests owned by the
Trust. The Trustee acknowledges that the REMIC II Assets are held by it as Trustee of the Trust for the benefit of the holders of
the Certificates. It is the express intent of the parties hereto that the conveyance of the REMIC II Assets to the Trust by the
Company as provided in this Section 2.10 be, and be construed as, an absolute sale of the REMIC II Assets. It is, further, not the
intention of the parties that such conveyance be deemed the grant of a security interest in the REMIC II Assets by the Company to
the Trust to secure a debt or other obligation of the Company. However, in the event that, notwithstanding the intent of the
parties, the REMIC II Assets are held to be the property of the Company, or if for any other reason this Agreement is held or
deemed to create a security interest in the REMIC II Assets, then

 

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(a)           this
Agreement shall constitute a security agreement;

(b)           the
conveyance provided for in this Section 2.10 shall be deemed to be a grant by the Company to the Trust of, and the Company hereby
grants to the Trust, to secure all of the Company’s obligations hereunder, a security interest in all of the Company’s
right, title, and interest, whether now owned or hereafter acquired, in and to:

(I)            The REMIC I Regular Interests, including without
limitation all rights represented thereby in and to the Mortgage Pool Assets and the proceeds thereof;

(II)           All accounts, chattel paper, deposit accounts, documents,
general intangibles, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, and
other minerals, consisting of, arising from, or relating to, any of the foregoing; and

(III)         All proceeds of the foregoing.

The Company shall file such financing statements, and the Company and
the Trustee acting on behalf of the Trust at the direction of the Company shall, to the extent consistent with this Agreement, take
such other actions as may be necessary to ensure that, if this Agreement were found to create a security interest in the REMIC II
Assets, such security interest would be a perfected security interest of first priority under applicable law and will be maintained
as such throughout the term of this Agreement. In connection herewith, the Trust shall have all of the rights and remedies of a
secured party and creditor under the Uniform Commercial Code as in force in the relevant jurisdiction.

Section 2.11.         REMIC Election for REMIC II.

The Tax Matters Person shall, on behalf of REMIC II, elect to treat
REMIC II as a REMIC within the meaning of Section 860D of the Code and, if necessary, under applicable state laws. Such election
shall be included in the Form 1066 and any appropriate state return to be filed on behalf of REMIC II for its first taxable
year.

The Closing Date is hereby designated as the “startup day”
of REMIC II within the meaning of Section 860G(a)(9) of the Code.

The regular interests (as set forth in the table contained in the
Preliminary Statement hereto) relating to REMIC II are hereby designated as “regular interests” in REMIC II for
purposes of Section 860G(a)(1) of the Code. The Class R-2 Residual Interest is hereby designated as the sole class of
“residual interest” in REMIC II for purposes of Section 860G(a)(2) of the Code. The REMIC II Regular Interests and the
Class R-2 Residual Interest shall together be deemed to be a separate series of beneficial interests in the assets of the Trust
consisting of the REMIC II Assets pursuant to Section 3806(b)(2) of the Statutory Trust Statute.

 

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The parties intend that the affairs of REMIC II shall constitute, and
that the affairs of REMIC II shall be conducted so as to qualify it as, a REMIC. In furtherance of such intention, the Tax Matters
Person shall, on behalf of REMIC II: (a) prepare and file, or cause to be prepared and filed, a federal tax return using a calendar
year as the taxable year for REMIC II when and as required by the REMIC provisions and other applicable federal income tax laws;
(b) make an election, on behalf of REMIC II, to be treated as a REMIC on the federal tax return of REMIC II for its first taxable
year, in accordance with the REMIC provisions; (c) prepare and forward, or cause to be prepared and forwarded, to the
Certificateholders and the Holders of the Class R-2 Residual Interest all information reports as and when required to be provided
to them in accordance with the REMIC provisions; (d) conduct the affairs of REMIC II at all times that any of the Certificates are
outstanding so as to maintain the status of REMIC II as a REMIC under the REMIC provisions; (e) not knowingly or intentionally take
any action or omit to take any action that would cause the termination of the REMIC status of REMIC II; and (f) pay the amount of
any federal prohibited transaction penalty taxes imposed on REMIC II when and as the same shall be due and payable (but such
obligation shall not prevent the Company or any other appropriate person from contesting any such tax in appropriate proceedings
and shall not prevent the Company from withholding payment of such tax, if permitted by law, pending the outcome of such
proceedings); provided, that the Company shall be entitled to be indemnified from REMIC II for any such prohibited transaction
penalty taxes if the Company’s failure to exercise reasonable care was not the primary cause of the imposition of such
prohibited transaction penalty taxes.

In the event that any tax is imposed on “prohibited
transactions” of REMIC II as defined in Section 860F of the Code and not paid by the Company pursuant to clause (f) of the
preceding paragraph, such tax shall be charged against amounts otherwise distributable to the Holders of the Class R-2 Residual
Interest. Notwithstanding anything to the contrary contained herein, the Company is hereby authorized to retain from amounts
otherwise distributable to the Holders of the Class R-2 Residual Interest on any Distribution Date sufficient funds to reimburse
the Company for the payment of such tax (to the extent that the Company has not been previously reimbursed therefor).

Section
2.12.         Acknowledgement of Transfer of REMIC II Assets; Authentication of Certificates. The Trustee
hereby acknowledges and accepts on behalf of the Trust the assignment to the Trust of the REMIC II Assets and declares that as of
the Closing Date it holds and shall hold any documents constituting a part of the REMIC II Assets, and the REMIC II Assets, as
Trustee in trust, upon the trust herein set forth, for the use and benefit of all present and future Holders of the Certificates
(other than the Class R Certificates) and the Class R-2 Residual Interest.  In connection therewith, as of the Closing Date,
in exchange for the REMIC II Assets, the Trustee on behalf of the Trust shall cause to be authenticated and delivered, upon and
pursuant to the order of the Company, the Certificates in Authorized Denominations.

Section
2.13.         Legal Title. Legal title to all assets of the Trust shall be vested at all times in the Trust
as a separate legal entity.

Section
2.14.         Compliance with ERISA Requirements. For purposes of ensuring compliance with the requirements
of the “underwriter’s exemption” (U.S. Department of Labor Prohibited Transaction Exemption 2002-41, 67 Fed. Reg.
54487 (Aug. 22, 2002)), issued under ERISA, and for the avoidance of any doubt as to the applicability of other provisions of this
Agreement, to the fullest extent permitted by applicable law and except as contemplated by this Agreement, (1) the Trust shall not
be a party to any merger, consolidation or reorganization, or liquidate or sell its assets and (2) so long as any Certificates are
outstanding, none of the Company, the Trustee or the Delaware Trustee shall institute against the Trust, or join in any institution
against the Trust of, any bankruptcy or insolvency proceedings under any federal or state bankruptcy, insolvency or similar
law.

 

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Section
2.15.         Additional Representation of the Company Concerning the Mortgage Loans. The Company hereby
represents and warrants to the Trust that it does not intend for the Mortgage Pool to include any Mortgage Loan that is a
“high-cost home loan” as defined under the New Jersey Home Ownership Security Act of 2002 or the New Mexico Home Loan
Protection Act.  Based on the foregoing representation and warranty and on the Company’s obligation, pursuant to Section
2.08, to repurchase or substitute for the affected Mortgage Loan in the event of a breach of the representation set forth in clause
(xxx) of Section 2.08, the other parties hereto agree and understand that it is not intended for the Mortgage Pool to include any
Mortgage Loan that is a “high-cost home loan” as defined under the New Jersey Home Ownership Security Act of 2002 or
the New Mexico Home Loan Protection Act.

ARTICLE III

Administration and Servicing of Mortgage Loans

Section
3.01.         The Company to Act as Master Servicer.  The Company shall act as Master Servicer to
service and administer the Mortgage Loans on behalf of the Trust and for the benefit of the Certificateholders in accordance with
the terms hereof, consistent with prudent mortgage loan servicing practices and (unless inconsistent with prudent mortgage loan
servicing practices) in the same manner in which, and with the same care, skill, prudence and diligence with which, it services and
administers similar mortgage loans for other portfolios, and shall have full power and authority to do or cause to be done any and
all things in connection with such servicing and administration which a prudent servicer of mortgage loans would do under similar
circumstances, including, without limitation, the power and authority to bring actions and defend the Mortgage Pool Assets on
behalf of the Trust in order to enforce the terms of the Mortgage Notes.  The Master Servicer may perform its master servicing
responsibilities through agents or independent contractors, but shall not thereby be released from any of its responsibilities
hereunder and the Master Servicer shall diligently pursue all of its rights against such agents or independent
contractors.

The Master Servicer shall make reasonable efforts to collect or cause
to be collected all payments called for under the terms and provisions of the Mortgage Loans and shall, to the extent such
procedures shall be consistent with this Agreement and the terms and provisions of any Primary Insurance Policy, any FHA insurance
policy or VA guaranty, any hazard insurance policy, and federal flood insurance, cause to be followed such collection procedures as
are followed with respect to mortgage loans comparable to the Mortgage Loans and held in portfolios of responsible mortgage lenders
in the local areas where each Mortgaged Property is located. The Master Servicer shall enforce “due-on-sale” clauses
with respect to the related Mortgage Loans, to the extent permitted by law, subject to the provisions set forth in Section
3.08.

 

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Consistent with the foregoing, the Master Servicer may, in accordance
with prudent mortgage loan servicing practices, (i) waive or cause to be waived any assumption fee or late payment charge in
connection with the prepayment of any Mortgage Loan and (ii) only upon determining that the coverage of any applicable insurance
policy or guaranty related to a Mortgage Loan will not be materially adversely affected, arrange a schedule, running for no more
than 180 days after the first delinquent Due Date, for payment of any delinquent installment on any Mortgage Note or for the
liquidation of delinquent items. Subject to the fourth sentence of this paragraph, the Master Servicer shall have the right, but
not the obligation, to purchase any Mortgage Loan delinquent 90 consecutive days or more for an amount equal to its Purchase Price;
provided, however, that the aggregate Purchase Price of Mortgage Loans so purchased pursuant to this sentence shall not
exceed one-half of one percent (0.50%) of the aggregate Principal Balance, as of the Cut-Off Date, of all Mortgage Loans. 
Subject to the fourth sentence of this paragraph, the Master Servicer shall also have the right, but not the obligation, to
purchase, for an amount equal to its Purchase Price, any Mortgage Loan delinquent 90 consecutive days or more, for the purpose of
requiring the Person who sold such Mortgage Loan to the Company to repurchase such Mortgage Loan based on a breach of a
representation or warranty made by such Person in connection with the Company’s purchase or acquisition of such Mortgage
Loan.  Notwithstanding the immediately preceding two sentences, the Master Servicer’s right to purchase any Mortgage
Loan pursuant to either of such preceding sentences shall be subject to the following additional conditions: (x) if the date on
which the Mortgage Loan first became 90-day delinquent (the “Initial Delinquency Date”) occurred during the
first two calendar months of a calendar quarter, the Master Servicer may exercise the purchase right during the period commencing
on the Initial Delinquency Date and ending on the last Master Servicer Business Day of such calendar quarter, (y) if the Initial
Delinquency Date occurred during the third calendar month of a calendar quarter, the Master Servicer may exercise the purchase
right during the period commencing on the first day of the immediately succeeding calendar quarter and ending on the last Master
Servicer Business Day of such succeeding calendar quarter and (z) if the Master Servicer does not exercise the purchase right with
respect to a Mortgage Loan during the period specified in clause (x) or (y), as applicable, such Mortgage Loan shall thereafter
again become eligible for purchase pursuant to the preceding two sentences only after the Mortgage Loan ceases to be 90-day
delinquent and thereafter becomes 90-day delinquent again.  For purposes of this paragraph, a Mortgage Loan is considered
delinquent for 90 consecutive days if a Monthly Payment is not received by the first day of the third month following the month
during which such payment was due.

Consistent with the terms of this Section 3.01, the Master Servicer
may waive, modify or vary any term of any Mortgage Loan or consent to the postponement of strict compliance with any such term or
in any manner grant indulgence to any Mortgagor if it has determined, exercising its good faith business judgment in the same
manner as it would if it were the owner of the related Mortgage Loan, that the security for, and the timely and full collectibility
of, such Mortgage Loan would not be adversely affected by such waiver, modification, postponement or indulgence; provided, however,
that (unless the Mortgagor is in default with respect to the Mortgage Loan or in the reasonable judgment of the Master Servicer
such default is imminent) the Master Servicer shall not permit any modification with respect to any Mortgage Loan that would (i)
change the applicable Mortgage Interest Rate, defer or forgive the payment of any principal or interest, reduce the outstanding
principal balance (except for actual payments of principal) or extend the final maturity date with respect to such Mortgage Loan,
or (ii) be inconsistent with the terms of any applicable Primary Insurance Policy, FHA insurance policy, VA guaranty, hazard
insurance policy or federal flood insurance policy. Notwithstanding the foregoing, the Master Servicer shall not permit any
modification with respect to any Mortgage Loan that would both constitute a sale or exchange of such  

 

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Mortgage Loan within the
meaning of Section 1001 of the Code (including any proposed, temporary or final regulations promulgated thereunder) (other than in
connection with a proposed conveyance or assumption of such Mortgage Loan that is treated as a Principal Prepayment or in a default
situation) and cause any REMIC to fail to qualify as such under the Code. The Master Servicer shall be entitled to approve a
request from a Mortgagor for a partial release of the related Mortgaged Property, the granting of an easement thereon in favor of
another Person, any alteration or demolition of the related Mortgaged Property or other similar matters if it has determined,
exercising its good faith business judgment in the same manner as it would if it were the owner of the related Mortgage Loan, that
the security for, and the timely and full collectibility of, such Mortgage Loan would not be adversely affected thereby and that
REMIC I and REMIC II would not fail to continue to qualify as REMICs under the Code as a result thereof and that no tax on
“prohibited transactions” or “contributions” after the startup day would be imposed on any REMIC as a
result thereof.

The Master Servicer is hereby authorized and empowered by the Trust to
execute and deliver or cause to be executed and delivered on behalf of the Holders of the REMIC I Regular Interests and the Class
R-1 Residual Interest, and the Trust or any of them, any and all instruments of satisfaction or cancellation, or of partial or full
release, discharge or modification, assignments of Mortgages and endorsements of Mortgage Notes in connection with refinancings (in
jurisdictions where such assignments are the customary and usual standard of practice of mortgage lenders) and all other comparable
instruments, with respect to the Mortgage Loans and with respect to the Mortgaged Properties. The Master Servicer is hereby further
authorized and empowered by the Trust to execute and deliver or cause to be executed and delivered on behalf of the Holders of the
REMIC I Regular Interests and the Class R-1 Residual Interest and the Trust, or any of them, such instruments of assignment or
other comparable instruments as the Master Servicer shall, in its sole judgment, deem appropriate in order to register any Mortgage
Loan on the MERS® System or to cause the removal of any Mortgage Loan from registration thereon. Any expenses incurred in
connection with the actions described in the preceding sentence shall be borne by the Master Servicer with no right of
reimbursement; provided, however, that any such expenses incurred as a result of any termination by MERS of the MERS®
System shall be reimbursable to the Master Servicer.  The Trustee on behalf of the Trust shall execute and furnish to the
Master Servicer, at the Master Servicer’s direction, any powers of attorney and other documents prepared by the Master
Servicer and determined by the Master Servicer to be necessary or appropriate to enable the Master Servicer to carry out its
supervisory, servicing and administrative duties under this Agreement.

The Master Servicer and each Servicer shall obtain (to
the extent generally commercially available) and maintain fidelity bond and errors and omissions coverage acceptable to Fannie Mae
or Freddie Mac with respect to their obligations under this Agreement and the applicable Selling and Servicing Contract,
respectively. The Master Servicer or each Servicer, as applicable, shall establish escrow accounts for, or pay when due (by means
of an advance), any tax liens in connection with the Mortgaged Properties that are not paid by the Mortgagors when due to the
extent that any such payment would not constitute a Nonrecoverable Advance when made.

 

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In connection with the servicing and administering of each Mortgage
Loan, the Master Servicer and any affiliate of the Master Servicer (i) may perform services such as appraisals, default management
and (in the case of affiliates only) brokerage services that are not customarily provided by servicers of mortgage loans, and shall
be entitled to reasonable compensation therefor and (ii) may, at its own discretion and on behalf of the Trust, obtain credit
information in the form of a “credit score” from a credit repository.

Section
3.02.         Custodial Accounts and Buydown Fund Accounts. The Master Servicer shall cause to be
established and maintained by each Servicer under the Master Servicer’s supervision the Custodial Account for P&I,
Buydown Fund Accounts (if any) and special Custodial Account for Reserves and shall deposit or cause to be deposited therein daily
the following amounts received or advanced by the Servicer with respect to the Mortgage Loans:

(i)            all scheduled payments of principal;

(ii)           all scheduled payments of interest, net of the Servicing
Fees due the applicable Servicers;

(iii)          all Curtailments and Payoffs; and

(iv)          all Insurance Proceeds, Liquidation Proceeds, Excess Liquidation
Proceeds and Subsequent Recoveries;

provided, however, that (x) proceeds received with respect to individual Mortgage Loans from
any title, hazard, or FHA insurance policy, VA guaranty, Primary Insurance Policy or other insurance policy (other than any Special
Primary Insurance Policy) covering such Mortgage Loans, if required for the restoration or repair of the related Mortgaged
Property, may be deposited either in the Custodial Account for Reserves or the Custodial Account for P&I and (y) such proceeds
(other than proceeds from any Special Primary Insurance Policy), if not required for the restoration or repair of the related
Mortgaged Property, and if not released to the Mortgagor in accordance with prudent mortgage loan servicing practices, shall be
deposited in the Custodial Account for P&I, and shall be applied to the balances of the related Mortgage Loans as payments of
interest and principal.

The Master Servicer is hereby authorized to make withdrawals from and
to issue drafts against the Custodial Accounts for P&I and the Custodial Accounts for Reserves for the purposes required or
permitted by this Agreement. Each Custodial Account for P&I and each Custodial Account for Reserves shall bear a designation
clearly showing the respective interests of the applicable Servicer, as trustee, and of the Master Servicer, in substantially one
of the following forms:

(a)           With respect to the Custodial Account for P&I: (i)
[Servicer’s Name], as agent, trustee and/or bailee of principal and interest custodial account for Washington Mutual Mortgage
Securities Corp., its successors and assigns, for various owners of interests in Washington Mutual Mortgage Securities Corp.
mortgage-backed pools or (ii) [Servicer’s Name] in trust for Washington Mutual Mortgage Securities Corp.;

 

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(b)           With respect to the Custodial Account for Reserves: (i)
[Servicer’s Name], as agent, trustee and/or bailee of taxes and insurance custodial account for Washington Mutual Mortgage
Securities Corp., its successors and assigns for various mortgagors and/or various owners of interests in Washington Mutual
Mortgage Securities Corp. mortgage-backed pools or (ii) [Servicer’s Name] in trust for Washington Mutual Mortgage Securities
Corp. and various Mortgagors.

The Master Servicer hereby undertakes to assure remittance to the
Certificate Account of all amounts relating to the Mortgage Loans that have been collected by any Servicer and are due to the
Certificate Account pursuant to Section 4.01 of this Agreement.

Funds held in the Custodial Account for P&I and the Custodial
Account for Reserves may, at the Master Servicer’s option, be invested in (i) one or more Eligible Investments which shall in
no event mature later than the Business Day prior to the related Withdrawal Date (except if such Eligible Investments are
obligations of the Trustee, such Eligible Investments may mature on the Withdrawal Date), or (ii) such other instruments as shall
be required to maintain the Ratings.

Section
3.03.         The Investment Account; Eligible Investments.(a)        Not
later than the Withdrawal Date, the Master Servicer shall withdraw or direct the withdrawal of funds in the Custodial Accounts for
P&I, for deposit in the Investment Account, in an amount representing:

(i)                  Scheduled installments of principal and interest on the Mortgage Loans received or advanced by the applicable Servicers
which were due on the related Due Date, net of Servicing Fees due the applicable Servicers and less any amounts to be withdrawn
later by the applicable Servicers from the applicable Buydown Fund Accounts;

(ii)                Payoffs and the proceeds of other types of liquidations of the Mortgage Loans received by the applicable Servicer for such
Mortgage Loans during the applicable Payoff Period, with interest to the date of Payoff or liquidation less any amounts to be
withdrawn later by the applicable Servicers from the applicable Buydown Fund Accounts; and

(iii)               Curtailments received by the applicable Servicers in the Prior Period.

At its option, the Master Servicer may invest funds withdrawn from the
Custodial Accounts for P&I, as well as any Buydown Funds, Insurance Proceeds and Liquidation Proceeds previously received by
the Master Servicer (including amounts paid by the Company in respect of any Purchase Obligation or its substitution obligations
set forth in Section 2.07 or Section 2.08 or in connection with the exercise of the option to terminate this Agreement pursuant to
Section 9.01) for its own account and at its own risk, during any period prior to their deposit in the Certificate Account. Such
funds, as well as any funds which were withdrawn from the Custodial Accounts for P&I on or before the Withdrawal Date, but not
yet deposited into the Certificate Account, shall immediately be deposited by the Master Servicer with the Investment Depository in
an Investment Account in the name of the Master Servicer and the Trust for investment only as set forth in this Section 3.03. The
Master Servicer shall bear any and all losses incurred on any investments made with such funds and shall be entitled to retain all
gains realized on such investments as additional servicing compensation. Not later than the Business Day prior to the Distribution
Date, the Master Servicer shall deposit such funds, net of any gains (except Payoff Earnings) earned thereon, in the Certificate
Account.

 

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(b)           Funds
held in the Investment Account shall be invested in (i) one or more Eligible Investments which shall in no event mature later than
the Business Day prior to the related Distribution Date (except if such Eligible Investments are obligations of the Trustee, such
Eligible Investments may mature on the Distribution Date), or (ii) such other instruments as shall be required to maintain the
Ratings.

Section 3.04.         The Certificate Account.

(a)           On or prior to the Closing Date, the Trustee shall establish the Certificate Account, which shall be entitled
“Washington Mutual Mortgage Securities Corp. Certificate Account under the Pooling and Servicing Agreement, dated as of
August 1, 2004, among Washington Mutual Mortgage Securities Corp., as Depositor and Master Servicer, Citibank, N.A., as the
Trustee, and Christiana Bank & Trust Company, as the Delaware Trustee, for the benefit of WaMu Mortgage Pass-Through
Certificates Series 2004-CB3 Trust created pursuant thereto”.  Promptly after the Closing Date, the Trustee shall
communicate to the Master Servicer the account number and wiring instructions for the Certificate Account.

Not later than the Business Day prior to the related Distribution
Date, the Master Servicer shall direct the Investment Depository to deposit into the Certificate Account the amounts previously
deposited into the Investment Account (which may include a deposit of Eligible Investments) to which the Holders of the REMIC I
Regular Interests and the Class R-1 Residual Interest are entitled or which are necessary for payment of any Special Primary
Insurance Premiums. In addition, not later than the Business Day prior to the Distribution Date, the Master Servicer shall deposit
into the Certificate Account any Monthly P&I Advances or other payments required to be made by the Master Servicer pursuant to
Section 4.02 of this Agreement and any Insurance Proceeds or Liquidation Proceeds (including amounts paid by the Company in respect
of any Purchase Obligation) not previously deposited in the Custodial Accounts for P&I or the Investment Account, and any
amounts paid by the Master Servicer in connection with the exercise of its option to terminate this Agreement pursuant to Section
9.01 or any other purchase of Mortgage Loans permitted by this Agreement.

(b)           Funds
held in the Certificate Account shall be invested at the written direction of the Master Servicer in (i) one or more Eligible
Investments which shall in no event mature later than the Business Day prior to the related Distribution Date (except if such
Eligible Investments are obligations of the Trustee, such Eligible Investments may mature on the Distribution Date), or (ii) such
other instruments as shall be required to maintain the Ratings.  The Master Servicer shall be entitled to receive any gains
earned on such Eligible Investments and shall bear any losses suffered in connection therewith.  If the Trustee has not
received such written investment directions from the Master Servicer, the Trustee shall not invest funds held in the Certificate
Account.  The Trustee shall have no liability for any losses on investments of funds held in the Certificate
Account.

 

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Section 3.05.        
Permitted Withdrawals from the Certificate Account, the Investment Account and Custodial Accounts
for P&I and of Buydown Funds from the Buydown Fund Accounts.

(a)           The
Master Servicer is authorized to make withdrawals (or, in the case of the Certificate Account, to direct the Trustee to make
withdrawals), from time to time, from the Investment Account, the Certificate Account or the Custodial Accounts for P&I
established by the Servicers of amounts deposited therein in respect of the Certificates (and, to the extent applicable, to make
deposits of the amounts withdrawn), as follows:

(i)                  To reimburse itself or the applicable Servicer for Monthly P&I Advances made pursuant to Section 4.02 or a Selling and
Servicing Contract, such right to reimbursement pursuant to this paragraph (i) being limited to amounts received on particular
Mortgage Loans (including, for this purpose, Insurance Proceeds and Liquidation Proceeds) which represent late recoveries of
principal and/or interest respecting which any such Monthly P&I Advance was made;

(ii)                To reimburse itself or the applicable Servicer for amounts expended by or for the account of the Master Servicer pursuant
to Section 3.09 or amounts expended by such Servicer pursuant to the Selling and Servicing Contracts in connection with the
restoration of property damaged by an Uninsured Cause or in connection with the liquidation of a Mortgage Loan;

(iii)               To pay to itself, with respect to the related Mortgage Loans, the Master Servicing Fee (net of Compensating Interest reduced by
Payoff Earnings and Payoff Interest) as to which no prior withdrawals from funds deposited by the Master Servicer have been
made;

(iv)              To
reimburse itself or the applicable Servicer for advances made with respect to related Mortgage Loans (except for Mortgage Loans
purchased pursuant to a Purchase Obligation or pursuant to the second or third sentence of the third paragraph of Section 3.01)
which the Master Servicer has determined to be Nonrecoverable Advances;

(v)                To pay to itself reinvestment earnings deposited or earned in the Investment Account and the Certificate Account to which
it is entitled and to reimburse itself for expenses incurred by and reimbursable to it pursuant to Section 6.03;

(vi)              To
deposit to the Investment Account amounts in the Certificate Account not required to be on deposit therein at the time of such
withdrawal;

(vii)             To deposit
in the Certificate Account, not later than the Business Day prior to the related Distribution Date, the amounts in the Investment
Account specified in Section 3.04(a);

 

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(viii)           To pay on behalf of the
Trustee any Special Primary Insurance Premium payable by the Trustee pursuant to Section 4.04(a); provided, the Master
Servicer shall give written notice thereof to the Trustee prior to noon New York City time two Business Days prior to the
applicable Distribution Date; and

after
making or providing for the above withdrawals

(ix)              To
clear and terminate the Investment Account and the Certificate Account following termination of this Agreement pursuant to Section
9.01.

Since, in connection with withdrawals pursuant to paragraphs (i) and
(ii), the Master Servicer’s entitlement thereto is limited to collections or other recoveries on the related Mortgage Loan,
the Master Servicer or the applicable Servicer shall keep and maintain separate accounting for each Mortgage Loan, for the purpose
of justifying any such withdrawals.

(b)           The
Master Servicer or the applicable Servicer, if such Servicer holds and maintains a Buydown Fund Account, is authorized to make
withdrawals, from time to time, of Buydown Funds from the Buydown Fund Account or Custodial Account for P&I established by any
Servicer under its supervision (and, to the extent applicable, to make deposits of the amounts withdrawn), as follows:

(i)                  To deposit each month in the Investment Account the amount necessary to supplement payments received on Buydown
Loans;

(ii)                In the event of a Payoff of any Mortgage Loan having a related Buydown Fund, to apply amounts remaining in Buydown Fund
Accounts to reduce the required amount of such principal Payoff (or, if the Mortgagor has made a Payoff, to refund such remaining
Buydown Fund amounts to the Person entitled thereto);

(iii)               In the event of foreclosure or liquidation of any Mortgage Loan having a Buydown Fund, to deposit remaining Buydown Fund
amounts in the Investment Account as Liquidation Proceeds; and

(iv)              To
clear and terminate the portion of any account representing Buydown Funds following termination of this Agreement pursuant to
Section 9.01;

(c)           The
Trustee is authorized to make withdrawals from time to time from the Certificate Account to reimburse itself for advances it has
made pursuant to Section 7.01(a) hereof that it has determined to be Nonrecoverable Advances.

(d)           Each
Servicer is authorized to make withdrawals, from time to time, from the related Custodial Account for P&I, (i) to pay to
itself, with respect to the related Mortgage Loans, the Servicing Fee and (ii) to reimburse itself for expenses to the same extent
that the Master Servicer is authorized to make withdrawals to reimburse the Servicer for expenses pursuant to clauses (i), (ii) and
(iv) of Section 3.05(a), in the case of each of clause (d)(i) and (d)(ii), to the extent no prior withdrawals of such amounts have
been made by the Servicer or the Master Servicer.

 

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Section
3.06.         Maintenance of Primary Insurance Policies; Collections Thereunder. The Master Servicer shall
use commercially reasonable efforts to keep, and to cause the Servicers to keep, in full force and effect each Primary Insurance
Policy (except any Special Primary Insurance Policy) required with respect to a Mortgage Loan, until no longer required, and the
Master Servicer shall use commercially reasonable efforts to keep in full force and effect each Special Primary Insurance Policy,
if any. Notwithstanding the foregoing, the Master Servicer shall have no obligation to maintain any Primary Insurance Policy for a
Mortgage Loan for which the outstanding Principal Balance thereof at any time subsequent to origination was 80% or less of the
Appraised Value of the related Mortgaged Property, unless required by applicable law.

Unless required by applicable law, the Master Servicer shall not
cancel or refuse to renew, or allow any Servicer under its supervision to cancel or refuse to renew, any Primary Insurance Policy
in effect at the date of the initial issuance of the Certificates that is required to be kept in force hereunder; provided,
however, that neither the Master Servicer nor any Servicer shall advance funds for the payment of any premium due under (i) any
Primary Insurance Policy (other than a Special Primary Insurance Policy) if it shall determine that such an advance would be a
Nonrecoverable Advance or (ii) any Special Primary Insurance Policy.

Section
3.07.         Maintenance of Hazard Insurance. The Master Servicer shall cause to be maintained for each
Mortgage Loan (other than a Cooperative Loan) fire insurance with extended coverage in an amount which is not less than the
original principal balance of such Mortgage Loan, except in cases approved by the Master Servicer in which such amount exceeds the
value of the improvements to the Mortgaged Property. The Master Servicer shall also require fire insurance with extended coverage
in a comparable amount on property acquired upon foreclosure, or deed in lieu of foreclosure, of any Mortgage Loan (other than a
Cooperative Loan). Any amounts collected under any such policies (other than amounts to be applied to the restoration or repair of
the related Mortgaged Property) shall be deposited into the Custodial Account for P&I, subject to withdrawal pursuant to the
applicable Selling and Servicing Contract and pursuant to Section 3.03 and Section 3.05. Any unreimbursed costs incurred in
maintaining any insurance described in this Section 3.07 shall be recoverable as an advance by the Master Servicer from the
Investment Account or the Certificate Account. Such insurance shall be with insurers approved by the Master Servicer and Fannie Mae
or Freddie Mac. Other additional insurance may be required of a Mortgagor, in addition to that required pursuant to such applicable
laws and regulations as shall at any time be in force and as shall require such additional insurance. Where any part of any
improvement to the Mortgaged Property (other than a Mortgaged Property secured by a Cooperative Loan) is located in a federally
designated special flood hazard area and in a community which participates in the National Flood Insurance Program at the time of
origination of the related Mortgage Loan, the Master Servicer shall cause flood insurance to be provided. The hazard insurance
coverage required by this Section 3.07 may be met with blanket policies providing protection equivalent to individual policies
otherwise required. The Master Servicer or the applicable Servicer shall be responsible for paying any deductible amount on any
such blanket policy. The Master Servicer agrees to present, or cause to be presented, on behalf of and for the benefit of the
Trust, claims under the hazard insurance policy respecting any Mortgage Loan, and in this regard to take such reasonable actions as
shall be necessary to permit recovery under such policy.

 

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Section
3.08.         Enforcement of Due-on-Sale Clauses; Assumption Agreements. When any Mortgaged Property is
about to be conveyed by the Mortgagor, the Master Servicer shall, to the extent it has knowledge of such prospective conveyance and
prior to the time of the consummation of such conveyance, exercise on behalf of the Trust the Trust’s rights to accelerate
the maturity of such Mortgage Loan, to the extent that such acceleration is permitted by the terms of the related Mortgage Note,
under any “due-on-sale” clause applicable thereto; provided, however, that the Master Servicer shall not exercise any
such right if the due-on-sale clause, in the reasonable belief of the Master Servicer, is not enforceable under applicable law or
if such exercise would result in non-coverage of any resulting loss that would otherwise be covered under any insurance policy. In
the event the Master Servicer is prohibited from exercising such right, the Master Servicer is authorized to take or enter into an
assumption and modification agreement from or with the Person to whom a Mortgaged Property has been or is about to be conveyed,
pursuant to which such Person becomes liable under the Mortgage Note and, unless prohibited by applicable state law or unless the
Mortgage Note contains a provision allowing a qualified borrower to assume the Mortgage Note, the Mortgagor remains liable thereon;
provided that the Mortgage Loan shall continue to be covered (if so covered before the Master Servicer enters such agreement) by
any related Primary Insurance Policy. The Master Servicer is also authorized to enter into a substitution of liability agreement
with such Person, pursuant to which the original Mortgagor is released from liability and such Person is substituted as Mortgagor
and becomes liable under the Mortgage Note.  The Master Servicer shall not enter into any substitution or assumption with
respect to a Mortgage Loan if such substitution or assumption shall (i) both constitute a “significant modification”
effecting an exchange or reissuance of such Mortgage Loan under the Code (or Treasury regulations promulgated thereunder) and cause
the REMICs to fail to qualify as a REMIC under the REMIC Provisions or (ii) cause the imposition of any tax on “prohibited
transactions” or “contributions” after the startup day under the REMIC Provisions.  The Master Servicer
shall notify the Trustee that any such substitution or assumption agreement has been completed by forwarding to the Trustee the
original copy of such substitution or assumption agreement and other documents and instruments constituting a part thereof. In
connection with any such assumption or substitution agreement, the terms of the related Mortgage Note shall not be changed. Any fee
collected by the applicable Servicer for entering into an assumption or substitution of liability agreement shall be retained by
such Servicer as additional servicing compensation.

Notwithstanding the foregoing paragraph or any other provision of this
Agreement, the Master Servicer shall not be deemed to be in default, breach or any other violation of its obligations hereunder by
reason of any assumption of a Mortgage Loan by operation of law or any assumption which the Master Servicer may be restricted by
law from preventing, for any reason whatsoever.

Section
3.09.         Realization Upon Defaulted Mortgage Loans. The Master Servicer shall foreclose upon or
otherwise comparably convert, or cause to be foreclosed upon or comparably converted, the ownership of any Mortgaged Property
securing a Mortgage Loan which comes into and continues in default and as to which no satisfactory arrangements can be made for
collection of delinquent payments pursuant to Section 3.01. In lieu of such foreclosure or other conversion, and taking into
consideration the desirability of maximizing net Liquidation Proceeds after taking into account the effect of Insurance Proceeds
upon Liquidation Proceeds, the Master Servicer may, to the extent consistent with prudent mortgage loan servicing practices, accept
a payment of less than the outstanding Principal Balance of a delinquent Mortgage Loan in full satisfaction of the indebtedness
evidenced by the related Mortgage Note and release the lien of the related Mortgage upon receipt of such payment. The Master
Servicer shall not foreclose upon or otherwise comparably convert a Mortgaged Property if the Master Servicer is aware of evidence
of toxic waste, other hazardous substances or other evidence of environmental contamination thereon and the Master Servicer
determines that it would be imprudent to do so. In connection with such foreclosure or other conversion, the Master Servicer shall
cause to be followed such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in
general mortgage servicing activities. The foregoing is subject to the provision that, in the case of damage to a Mortgaged
Property from an Uninsured Cause, the Master Servicer shall not be required to advance its own funds towards the restoration of  

 

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the
property unless it shall be determined in the sole judgment of the Master Servicer, (i) that such restoration will increase the
proceeds of liquidation of the Mortgage Loan to Certificateholders after reimbursement to itself for such expenses, and (ii) that
such expenses will be recoverable to it through Liquidation Proceeds. The Master Servicer shall be responsible for all other costs
and expenses incurred by it in any such proceedings; provided, however, that it shall be entitled to reimbursement thereof (as well
as its normal servicing compensation) as an advance. The Master Servicer shall maintain information required for tax reporting
purposes regarding any Mortgaged Property which is abandoned or which has been foreclosed or otherwise comparably converted. The
Master Servicer shall report such information to the Internal Revenue Service and the Mortgagor in the manner required by
applicable law.

The Master Servicer may enter into one or more special servicing
agreements with a Lowest Class B Owner, subject to each Rating Agency's acknowledgment that the Ratings of the Certificates in
effect immediately prior to the entering into of such agreement would not be qualified, downgraded or withdrawn and the
Certificates would not be placed on credit review status (except for possible upgrading) as a result of such agreement.  Any
such agreement may contain provisions whereby such Lowest Class B Owner may (a) instruct the Master Servicer to instruct a Servicer
to the extent provided in the applicable Selling and Servicing Contract to commence or delay foreclosure proceedings with respect
to related delinquent Mortgage Loans, provided that the Lowest Class B Owner deposits a specified amount of cash with the Master
Servicer that will be available for distribution to Certificateholders if Liquidation Proceeds are less than they otherwise may
have been had the Servicer acted pursuant to its normal servicing procedures, (b) purchase such delinquent Mortgage Loans from the
Trust immediately prior to the commencement of foreclosure proceedings at a price equal to the aggregate outstanding Principal
Balance of such Mortgage Loans plus accrued interest thereon at the applicable Mortgage Interest Rate through the last day of the
month in which such Mortgage Loans are purchased and/or (c) assume all of the servicing rights and obligations with respect to such
delinquent Mortgage Loans so long as (i) the Master Servicer has the right to transfer the servicing rights and obligations of such
Mortgage Loans to another servicer and (ii) such Lowest Class B Owner will service such Mortgage Loans in accordance with the
applicable Selling and Servicing Contract.

REMIC I shall not acquire any real property (or personal property
incident to such real property) except in connection with a default or imminent default of a Mortgage Loan. In the event that REMIC
I acquires any real property (or personal property incident to such real property) in connection with a default or imminent default
of a Mortgage Loan, such property shall be disposed of by the Master Servicer as soon as practicable in a manner that, consistent
with prudent mortgage loan servicing practices, maximizes the net present value of the recovery to the Trust, but in any event
within three years after its acquisition by the Master Servicer for REMIC I unless the Master Servicer provides to the Trustee an
Opinion of Counsel to the effect that the holding by REMIC I of such Mortgaged Property subsequent to three years after its
acquisition will not result in the imposition of taxes on “prohibited transactions” of REMIC I as defined in Section
860F of the Code or under the law of any state in which real property securing a Mortgage Loan owned by REMIC I is located or cause
REMIC I to fail to qualify as a REMIC for federal income tax purposes or for state tax purposes under the laws of any state in
which real property securing a Mortgage Loan owned by REMIC I is located at  

 

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any time that any Certificates are outstanding. The
Master Servicer shall conserve, protect and operate each such property for the Certificateholders solely for the purpose of its
prompt disposition and sale in a manner which does not cause such property to fail to qualify as “foreclosure property”
within the meaning of Section 860G(a)(8) or result in the receipt by the REMIC of any “income from non-permitted
assets” within the meaning of Section 860F(a)(2)(B) of the Code or any “net income from foreclosure property”
which is subject to taxation under the REMIC Provisions. Pursuant to its efforts to sell such property, the Master Servicer shall
either itself or through an agent selected by the Master Servicer protect and conserve such property in the same manner and to such
extent as is customary in the locality where such property is located and may, incident to its conservation and protection of the
assets of the Trust, rent the same, or any part thereof, as the Master Servicer deems to be in the best interest of the Master
Servicer and the Trust for the period prior to the sale of such property. Additionally, the Master Servicer shall perform the tax
withholding and shall file information returns with respect to the receipt of mortgage interests received in a trade or business,
the reports of foreclosures and abandonments of any Mortgaged Property and the information returns relating to cancellation of
indebtedness income with respect to any Mortgaged Property required by Sections 6050H, 6050J and 6050P, respectively, of the Code,
and deliver to the Trustee an Officers’ Certificate on or before March 31 of each year stating that such reports have been
filed.  Such reports shall be in form and substance sufficient to meet the reporting requirements imposed by Sections 6050H,
6050J and 6050P of the Code.

Notwithstanding any other provision of this Agreement, the Master
Servicer and the Trustee, as applicable, shall comply with all federal withholding requirements with respect to payments to
Certificateholders of interest or original issue discount that the Master Servicer or the Trustee reasonably believes are
applicable under the Code.  The consent of Certificateholders shall not be required for any such withholding.  Without
limiting the foregoing, the Master Servicer agrees that it will not withhold with respect to payments of interest or original issue
discount in the case of a Certificateholder that has furnished or caused to be furnished an effective Form W-8 or an acceptable
substitute form or a successor form and who is not a “10 percent shareholder” within the meaning of Code Section
871(h)(3)(B) or a “controlled foreign corporation” described in Code Section 881(c)(3)(C) with respect to REMIC I,
REMIC II or the  depositor.  In the event the Trustee withholds any amount from interest or original issue discount
payments or advances thereof to any Certificateholder pursuant to federal withholding requirements, the Trustee shall indicate the
amount withheld to such Certificateholder.

Section
3.10.         Trustee to Cooperate; Release of Mortgage Files. Upon the Payoff or scheduled maturity of any
Mortgage Loan, the Master Servicer shall cause such final payment to be immediately deposited in the related Custodial Account for
P&I or the Investment Account. The Master Servicer shall promptly notify the Trustee thereof by a certification (which
certification shall include a statement to the effect that all amounts received in connection with such payment which are required
to be deposited in either such account have been so deposited) of a Servicing Officer and shall request delivery to it of the
Mortgage File; provided,  

 

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 however, that such certification shall not be required if the Mortgage File is held by a Custodian
which is also the Servicer of the Mortgage Loan. Upon receipt of such certification and request, the Trustee shall, not later than
the fifth succeeding Business Day, release, or cause to be released, the related Mortgage File to the Master Servicer or the
applicable Servicer indicated in such request. With any such Payoff or other final payment, the Master Servicer is authorized (i)
to prepare for and procure from the trustee or mortgagee under the Mortgage which secured the Mortgage Note a deed of full
reconveyance or other form of satisfaction or assignment of Mortgage and endorsement of Mortgage Note in connection with a
refinancing covering the Mortgaged Property, which satisfaction, endorsed Mortgage Note or assigning document shall be delivered by
the Master Servicer to the person or persons entitled thereto, and (ii) with respect to any MERS Loan, to cause the removal of such
Mortgage Loan from registration on the MERS® System. No expenses incurred in connection with such satisfaction or assignment
shall be payable to the Master Servicer by the Trustee or from the Certificate Account, the related Investment Account or the
related Custodial Account for P&I. From time to time as appropriate for the servicing or foreclosure of any Mortgage Loan,
including, for this purpose, collection under any Primary Insurance Policy, the Trustee shall, upon request of the Master Servicer
and delivery to it of a trust receipt signed by a Servicing Officer, release not later than the fifth Business Day following the
date of receipt of such request and trust receipt the related Mortgage File to the Master Servicer or the related Servicer as
indicated by the Master Servicer and shall execute such documents as shall be necessary to the prosecution of any such proceedings.
Such trust receipt shall obligate the Master Servicer to return the Mortgage File to the Trustee when the need therefor by the
Master Servicer no longer exists, unless the Mortgage Loan shall be liquidated, in which case, upon receipt of a certificate of a
Servicing Officer similar to that herein above specified, the trust receipt shall be released by the Trustee to the Master
Servicer.

Section
3.11.         Compensation to the Master Servicer and the Servicers. As compensation for its activities
hereunder, the Master Servicer shall be entitled to receive from the Investment Account or the Certificate Account the amounts
provided for by Section 3.05(a)(iii). The Master Servicer shall be required to pay all expenses incurred by it in connection with
its activities hereunder and shall not be entitled to reimbursement therefor, except as specifically provided herein.

As compensation for its activities under the applicable Selling and
Servicing Contract, the applicable Servicer shall be entitled to withhold or withdraw from the related Custodial Account for
P&I the amounts provided for in such Selling and Servicing Contract to the extent not inconsistent with this Agreement
(including Section 3.05(d)). Each Servicer is required to pay all expenses incurred by it in connection with its servicing
activities under its Selling and Servicing Contract (including payment of premiums for Primary Insurance Policies, other than
Special Primary Insurance Policies, if required) and shall not be entitled to reimbursement therefor except as specifically
provided in such Selling and Servicing Contract and not inconsistent with this Agreement.

 

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Section
3.12.         Reports to the Trustee; Certificate Account Statement. Not later than 15 days after each
Distribution Date, the Master Servicer shall forward a statement, certified by a Servicing Officer, to the Trustee setting forth
the status of the Certificate Account as of the close of business on such Distribution Date and showing, for the period covered by
such statement, the aggregate of deposits into and withdrawals from the Certificate Account for each category of deposit specified
in Section 3.04 and each category of withdrawal specified in Section 3.05, and stating that all distributions required by this
Agreement have been made (or if any required distribution has not been made, specifying the nature and amount thereof).  The
Trustee shall make available such statements to any Certificateholder upon request at the expense of the Master Servicer. 
Such statement shall also, to the extent available, include information regarding delinquencies on the Mortgage Loans, indicating
the number and aggregate Principal Balance of Mortgage Loans which are one, two, three or more months delinquent, the number and
aggregate Principal Balance of Mortgage Loans with respect to which foreclosure proceedings have been initiated and the book value
of any Mortgaged Property acquired by the Trust through foreclosure, deed in lieu of foreclosure or other exercise of the
Trust’s security interest in the Mortgaged Property.

Section
3.13.         Annual Statement as to Compliance. The Master Servicer shall deliver to the Trustee, on or
before April 30 of each year, beginning with the first April 30 succeeding the Cut-Off Date by at least six months, an
Officer’s Certificate stating as to the signer thereof, that (i) a review of the activities of the Master Servicer during the
preceding calendar year and performance under this Agreement has been made under such officer’s supervision, and (ii) to the
best of such officer’s knowledge, based on such review, the Master Servicer has fulfilled all its obligations under this
Agreement throughout such year, or, if there has been a default in the fulfillment of any such obligation, specifying each such
default known to such officer and the nature and status thereof. Copies of such statement shall be provided by the Master Servicer
to Certificateholders upon request or by the Trustee (solely to the extent that such copies are available to the Trustee) at the
expense of the Master Servicer, should the Master Servicer fail to so provide such copies.

Section
3.14.         Access to Certain Documentation and Information Regarding the Mortgage Loans. In the event
that the Certificates are legal for investment by federally-insured savings associations, the Master Servicer shall provide to the
OTS, the FDIC and the supervisory agents and examiners of the OTS and the FDIC access to the documentation regarding the related
Mortgage Loans required by applicable regulations of the OTS or the FDIC, as applicable, and shall in any event provide such access
to the documentation regarding such Mortgage Loans to the Trustee and its representatives, such access being afforded without
charge, but only upon reasonable request and during normal business hours at the offices of the Master Servicer designated by
it.

Section
3.15.         Annual Independent Public Accountants’ Servicing Report. On or before April 30 of each
year, beginning with the first April 30 succeeding the Cut-Off Date by at least six months, the Master Servicer, at its expense,
shall furnish to the Trustee a copy of a report delivered to the Master Servicer by a firm of independent public accountants (who
may also render other services to the Master Servicer or any affiliate thereof) to the effect that, on the basis of an examination
conducted by such firm in accordance with standards established by the American Institute of Certified Public Accountants, the
Master Servicer has complied with certain minimum residential mortgage loan servicing standards in its role as Master Servicer with
respect to the servicing of residential mortgage loans (including the Mortgage Loans) during the most recently completed fiscal
year.  In rendering its report such firm may rely, (a) as to matters relating to the Certificates, upon a statistical sampling
of series of mortgage-backed certificates which may include the Certificates and (b) as to matters relating to the direct servicing
of residential mortgage loans by subservicers, upon comparable reports of firms of independent certified public accountants
rendered on the basis of examinations conducted in accordance with the same standards (rendered within one year of such report)
with respect to those subservicers.

 

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Section 3.16.         [Reserved.]

Section 3.17.         [Reserved.]

Section 3.18.         [Reserved.]

Section 3.19.         [Reserved.]

Section
3.20.         Assumption or Termination of Selling and Servicing Contracts by Trustee. In the event the
Master Servicer, or any successor Master Servicer, shall for any reason no longer be the Master Servicer (including by reason of an
Event of Default), the Trustee as trustee hereunder or its designee shall thereupon assume all of the rights and obligations of the
Master Servicer under the Selling and Servicing Contracts with respect to the related Mortgage Loans unless the Trustee elects to
terminate the Selling and Servicing Contracts with respect to such Mortgage Loans in accordance with the terms thereof. The
Trustee, its designee or the successor servicer for the Trustee shall be deemed to have assumed all of the Master Servicer’s
interest therein with respect to the related Mortgage Loans and to have replaced the Master Servicer as a party to the Selling and
Servicing Contracts to the same extent as if the rights and duties under the Selling and Servicing Contracts relating to such
Mortgage Loans had been assigned to the assuming party, except that the Master Servicer shall not thereby be relieved of any
liability or obligations under the Selling and Servicing Contracts with respect to the Master Servicer’s duties to be
performed prior to its termination hereunder.

The Master Servicer at its expense shall, upon request of the Trustee,
deliver to the assuming party all documents and records relating to the Selling and Servicing Contracts and the Mortgage Loans then
being master serviced by the Master Servicer and an accounting of amounts collected and held by the Master Servicer and otherwise
use its best efforts to effect the orderly and efficient transfer of the rights and duties under the related Selling and Servicing
Contracts relating to such Mortgage Loans to the assuming party.

ARTICLE IV

Payments to Certificateholders; Payment of Expenses

Section
4.01.         Distributions to Holders of REMIC I Regular Interests and Class R-1 Residual Interest. 
On each Distribution Date, the Trustee (or any duly appointed paying agent) (i) shall be deemed to have distributed from the
Certificate Account the REMIC I Distribution Amount to the Holders of the REMIC I Regular Interests and to have deposited such
amount for their benefit into the Certificate Account and (ii) from the Certificate Account shall distribute to the Class R
Certificateholders, in accordance with the written statement received from the Master Servicer pursuant to Section 4.02(b), the sum
of (a) the Excess Liquidation Proceeds and (b) the amounts to be distributed to the Holders of the Class R-1 Residual Interest
pursuant to the definition of “REMIC I Distribution Amount” for such Distribution Date.  Amounts distributed
pursuant to clause (ii) above shall be distributed by wire transfer in immediately available funds for the account of each Class R
Certificateholder, or by any other means of payment acceptable to each Class R Certificateholder of record on the immediately
preceding Record Date  

 

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(other than as provided in Section 9.01 respecting the final distribution), as specified by each such Certificateholder and at the address of such Holder appearing in the Certificate Register. Notwithstanding any other provision of
this Agreement, no actual distributions pursuant to clause (i) of this Section 4.01 shall be made on account of the deemed
distributions described in this paragraph except in the event of a liquidation of REMIC II and not REMIC I.

Section 4.02.         Advances by the Master Servicer; Distribution Reports to the Trustee.

(a)           To the
extent described below, the Master Servicer is obligated to advance its own funds to the Certificate Account to cover any shortfall
between (i) payments scheduled to be received in respect of Mortgage Loans, and (ii) the amounts actually deposited in the
Certificate Account on account of such payments. The Master Servicer’s obligation to make any advance or advances described
in this Section 4.02 is effective only to the extent that such advance is, in the good faith judgment of the Master Servicer made
on or before the second Business Day prior to each Distribution Date, reimbursable from Insurance Proceeds or Liquidation Proceeds
of the related Mortgage Loans or recoverable as late Monthly Payments with respect to the related Mortgage Loans or
otherwise.

Prior to the close of business on the second Business Day prior to
each Distribution Date, the Master Servicer shall determine whether or not it will make a Monthly P&I Advance on the Business
Day prior to such Distribution Date (in the event that the applicable Servicer fails to make such advances) and shall furnish a
written statement to the Trustee, the Paying Agent, if any, and to any Certificateholder requesting the same, setting forth the
aggregate amount to be advanced on account of principal and interest in respect of the Mortgage Loans, stated
separately.

In the event that the Master Servicer shall be required to make a
Monthly P&I Advance, it shall on the Business Day prior to the related Distribution Date either (i) deposit in the Certificate
Account an amount equal to such Monthly P&I Advance, (ii) make an appropriate entry in the records of the Certificate Account
that funds in such account being held for future distribution or withdrawal have been, as permitted by this Section 4.02, used by
the Master Servicer to make such Monthly P&I Advance, or (iii) make advances in the form of any combination of (i) and (ii)
aggregating the amount of such Monthly P&I Advance. Any funds being held for future distribution to Certificateholders and so
used shall be replaced by the Master Servicer by deposit in the Certificate Account on the Business Day immediately preceding any
future Distribution Date to the extent that funds in the Certificate Account on such Distribution Date with respect to the Mortgage
Loans shall be less than payments to Certificateholders required to be made on such date with respect to the Mortgage Loans. Under
each Selling and Servicing Contract, the Master Servicer is entitled to receive from the Custodial Accounts for P&I established
by the Servicers amounts received by the applicable Servicers on particular Mortgage Loans as late payments of principal and
interest or as Liquidation or Insurance Proceeds and respecting which the Master Servicer has made an unreimbursed advance of
principal and interest. The Master Servicer is also entitled to receive other amounts from the related Custodial Accounts for
P&I established by the Servicers to reimburse itself for prior Nonrecoverable Advances respecting Mortgage Loans serviced by
such Servicers. The Master Servicer shall deposit these amounts in the Investment Account prior to withdrawal pursuant to Section
3.05.

 

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In accordance with Section 3.05, Monthly P&I Advances are
reimbursable to the Master Servicer from cash in the Investment Account or the Certificate Account to the extent that the Master
Servicer shall determine that any such advances previously made are Nonrecoverable Advances pursuant to Section 4.03.

(b)           Prior
to noon New York City time two Business Days prior to each Distribution Date, the Master Servicer shall provide (x) the Trustee and
(y) the Company (if the Company is no longer acting as Master Servicer) with a statement in writing of (1) the amount, as
applicable, of (i) interest, (ii) the interest portion, if any, of Realized Losses, (iii) Uncompensated Interest Shortfall, (iv)
scheduled principal, (v) Principal Prepayments, (vi) Liquidation Principal, (vii) Subsequent Recoveries, (viii) the principal
portion of Realized Losses (after giving effect to any reduction thereof by application of any Cumulative Carry-Forward Subsequent
Recoveries Amount), (ix) the Residual Distribution Amount and (x) the Excess Liquidation Proceeds to be distributed or allocated,
as applicable, to each Class of Certificates on such Distribution Date (such amounts to be determined in accordance with the
definitions of “REMIC I Distribution Amount” and “REMIC II Distribution Amount,” Section 4.01 and Section
4.04 hereof and other related definitions set forth in Article I hereof); (2) the applicable Class Principal Balance after giving
effect to such distributions and allocations; (3) the Cumulative Carry-Forward Subsequent Recoveries Amount for such Distribution
Date and each Subgroup; and (4) the amount of any Special Primary Insurance Premium payable on such Distribution Date.

Section
4.03.         Nonrecoverable Advances. Any advance previously made by a Servicer pursuant to its Selling and
Servicing Contract with respect to a Mortgage Loan or by the Master Servicer that the Master Servicer shall determine in its good
faith judgment not to be ultimately recoverable from Insurance Proceeds or Liquidation Proceeds or otherwise with respect to such
Mortgage Loan or recoverable as late Monthly Payments with respect to such Mortgage Loan shall be a Nonrecoverable Advance. The
determination by the Master Servicer that it or the applicable Servicer has made a Nonrecoverable Advance or that any advance would
constitute a Nonrecoverable Advance, shall be evidenced by an Officer’s Certificate of the Master Servicer delivered to the
Trustee on the Determination Date and detailing the reasons for such determination.  Notwithstanding any other provision of
this Agreement, any insurance policy relating to the Mortgage Loans, or any other agreement relating to the Mortgage Loans to which
the Company or the Master Servicer is a party, (a) the Master Servicer and each Servicer shall not be obligated to, and shall not,
make any advance that, after reasonable inquiry and in its sole discretion, the Master Servicer or such Servicer shall determine
would be a Nonrecoverable Advance, and (b) the Master Servicer and each Servicer shall be entitled to reimbursement for any advance
as provided in Section 3.05(a)(i), (ii) and (iv) of this Agreement.

 

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Section 4.04.         Distributions to
Certificateholders; Payment of Special Primary Insurance Premiums. 

(a)           On
each Distribution Date, the Trustee (or any duly appointed paying agent) shall (i) subject to Section 3.05(a)(viii), withdraw from
the Certificate Account any Special Primary Insurance Premium payable on such Distribution Date and pay such amount to the insurer
under the applicable Special Primary Insurance Policy and (ii) withdraw from the Certificate Account  the REMIC II Available
Distribution Amount for such Distribution Date and distribute, from the amount so withdrawn, to the extent of the REMIC II
Available Distribution Amount, the REMIC II Distribution Amount to the Certificateholders (including the Class R Certificateholders
with respect to any distribution to the Holders of the Class R-2 Residual Interest), all in accordance with the written statement
received from the Master Servicer pursuant to Section 4.02(b).  Any Special Primary Insurance Premiums distributed pursuant to
clause (i) above shall be distributed by means of payment acceptable to the insurer under the respective Special Primary Insurance
Policy.  Amounts distributed to the Certificateholders pursuant to clause (ii) above shall be distributed by wire transfer in
immediately available funds for the account of, or by check mailed to, each such Certificateholder of record on the immediately
preceding Record Date (other than as provided in Section 9.01 respecting the final distribution), as specified by each such
Certificateholder and at the address of such Holder appearing in the Certificate Register.

(b)           All
reductions in the Certificate Principal Balance of a Certificate effected by distributions of principal and all allocations of
Realized Losses made on any Distribution Date shall be binding upon all Holders of such Certificate and of any Certificate issued
upon the registration of transfer or exchange therefor or in lieu thereof, whether or not such distribution is noted on such
Certificate. The final distribution of principal of each Certificate (and the final distribution upon the Class R Certificates upon
(i) the termination of REMIC I and REMIC II and (ii) the payment, or making provision for payment, of all liabilities of the Trust)
shall be payable in the manner provided above only upon presentation and surrender thereof on or after the Distribution Date
therefor at the office or agency of the Certificate Registrar specified in the notice delivered pursuant to Section 4.04(c)(ii) and
Section 9.01(b).

(c)          
Whenever, on the basis of Curtailments, Payoffs and Monthly Payments on the Mortgage Loans and Insurance Proceeds and Liquidation
Proceeds received and expected to be received during the Payoff Period, the Master Servicer has notified the Trustee that it
believes that the entire remaining unpaid Class Principal Balance of any Class of Certificates will become distributable on the
next Distribution Date, the Trustee shall, no later than the 18th day of the month of such Distribution Date, mail or cause to be
mailed to each Person in whose name a Certificate to be so retired is registered at the close of business on the Record Date and to
the Rating Agencies a notice to the effect that:

(i)                  it is expected that funds sufficient to make such final distribution will be available in the Certificate Account on such
Distribution Date, and

(ii)                if such funds are available, (A) such final distribution will be payable on such Distribution Date, but only upon
presentation and surrender of such Certificate at the office or agency of the Certificate Registrar maintained for such purpose
(the address of which shall be set forth in such notice), and (B) no interest shall accrue on such Certificate after such
Distribution Date.

 

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Section
4.05.         Statements to Certificateholders. With each distribution from the Certificate Account on a
Distribution Date, the Trustee shall send to each Rating Agency and shall make available to each Certificateholder the statement
required by Section 4.02(b). The Trustee may make available such statement and certain other information, including, without
limitation, information required to be provided by the Trustee pursuant to Sections 3.12 and 3.13, to Certificateholders through
the Trustee’s Corporate Trust home page on the world wide web. Such web page is currently located at
“www.sf.citidirect.com.” The location of such web page and the procedures used therein are subject to change from time
to time at the Trustee’s discretion.

Upon request by any Certificateholder or Rating Agency or the Trustee,
the Master Servicer shall forward to such Certificateholder or Rating Agency and the Trustee and the Company (if the Company is no
longer acting as Master Servicer) an additional report which sets forth with respect to the Mortgage Loans:

(a)           The number and aggregate Principal Balance of the Mortgage
Loans delinquent one, two and three months or more, in each case, by Loan Group;

(b)           The (i) number and aggregate Principal Balance of Mortgage
Loans with respect to which foreclosure proceedings have been initiated, and (ii) the number and aggregate book value of Mortgaged
Properties acquired through foreclosure, deed in lieu of foreclosure or other exercise of rights respecting the Trust’s
security interest in the Mortgage Loans, in each case, by Loan Group; and

(c)           The cumulative amount of Realized Losses incurred in respect
of each Loan Group allocated to the related Certificates since the Cut-Off Date.

Upon request by any Certificateholder, the Master Servicer, as soon as
reasonably practicable, shall provide the requesting Certificateholder with such information as is necessary and appropriate, in
the Master Servicer’s sole discretion, for purposes of satisfying applicable reporting requirements under Rule 144A of the
Securities Act.

The Company may make available any reports, statements or other
information to Certificateholders through the Company’s home page on the world wide web. As of the Closing Date, such web
page is located at “www.wamumsc.com” and information is available by clicking on “Investor
Information.”

ARTICLE V

The Certificates

Section 5.01.         The Certificates.

(a)           The
Certificates shall be substantially in the forms set forth in Exhibit A and B with the additional insertion from Exhibit H attached
hereto, and shall be executed by the Trustee on behalf of the Trust, authenticated by the Trustee (or any duly appointed
Authenticating Agent) and delivered (i) upon and pursuant to the order of the Company and (ii) upon receipt by the Trustee of the
documents specified in Section 2.01. The Certificates shall be issuable in
Authorized Denominations. Certificates shall be executed by manual or facsimile
signature on behalf of the Trust by authorized officers of the Trustee.
Certificates bearing the 

 

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manual or facsimile signatures of
individuals who were at the time of execution the proper officers of the Trustee
shall bind the Trust, notwithstanding that such individuals or any of them have
ceased to hold such offices prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of such Certificates. No
Certificate shall be entitled to any benefit under this Agreement, or be valid
for any purpose, unless there appears on such Certificate a certificate of
authentication substantially in the form provided for herein executed by the
Trustee or any Authenticating Agent by manual signature, and such certificate
upon any Certificate shall be conclusive evidence, and the only evidence, that
such Certificate has been duly authenticated and delivered hereunder. All
Certificates shall be dated the date of their authentication.

(b)           The
following definitions apply for purposes of this Section 5.01: “Disqualified Organization” means any Person
which is not a Permitted Transferee, but does not include any “Pass-Through Entity” which owns or holds a
Residual Certificate and of which a Disqualified Organization, directly or indirectly, may be a stockholder, partner or
beneficiary; “Pass-Through Entity” means any regulated investment company, real estate investment trust, common trust
fund, partnership, trust or estate, and any organization to which Section 1381 of the Code applies; “Ownership
Interest” means, with respect to any Residual Certificate, any ownership or security interest in such Residual
Certificate, including any interest in a Residual Certificate as the Holder thereof and any other interest therein whether direct
or indirect, legal or beneficial, as owner or as pledgee; “Transfer” means any direct or indirect transfer or
sale of, or directly or indirectly transferring or selling any Ownership Interest in a Residual Certificate; and
“Transferee” means any Person who is acquiring by Transfer any Ownership Interest in a Residual
Certificate.

(c)          
Restrictions on Transfers of the Residual Certificates to Disqualified Organizations are set forth in this Section
5.01(c).

(i)                  Each Person who has or who acquires any Ownership Interest in a Residual Certificate shall be deemed by the acceptance or
acquisition of such Ownership Interest to have agreed to be bound by the following provisions and to have irrevocably authorized
the Trustee or its designee under clause (iii)(A) below to deliver payments to a Person other than such Person and to negotiate the
terms of any mandatory sale under clause (iii)(B) below and to execute all instruments of transfer and to do all other things
necessary in connection with any such sale. The rights of each Person acquiring any Ownership Interest in a Residual Certificate
are expressly subject to the following provisions:

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

 

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(B)           In connection with any proposed Transfer of any Ownership
Interest in a Residual Certificate to a U.S. Person, the Trustee shall require delivery to it, and shall not register the Transfer
of any Residual Certificate until its receipt of (1) an affidavit and agreement (a “Transferee Affidavit and
Agreement”) attached hereto as Exhibit J from the proposed Transferee, in form and substance satisfactory to the Company,
representing and warranting, among other things, that it is not a Non-U.S. Person, that such transferee is a Permitted Transferee,
that it is not acquiring its Ownership Interest in the Residual Certificate that is the subject of the proposed Transfer as a
nominee, trustee or agent for any Person who is not a Permitted Transferee, that for so long as it retains its Ownership Interest
in a Residual Certificate, it will endeavor to remain a Permitted Transferee, and that it has reviewed the provisions of this
Section 5.01(c) and agrees to be bound by them, and (2) a certificate, attached hereto as Exhibit I, from the Holder wishing to
transfer the Residual Certificate, in form and substance satisfactory to the Company, representing and warranting, among other
things, that no purpose of the proposed Transfer is to allow such Holder to impede the assessment or collection of tax.

(C)           Notwithstanding the delivery of a Transferee Affidavit and
Agreement by a proposed Transferee under clause (B) above, if the Trustee has actual knowledge that the proposed Transferee is not
a Permitted Transferee, no Transfer of an Ownership Interest in a Residual Certificate to such proposed Transferee shall be
effected.

(D)          Each Person holding or acquiring any Ownership Interest in a
Residual Certificate agrees by holding or acquiring such Ownership Interest (i) to require a Transferee Affidavit and Agreement
from any other Person to whom such Person attempts to transfer its Ownership Interest and to provide a certificate to the Trustee
in the form attached hereto as Exhibit J; (ii) to obtain the express written consent of the Company prior to any transfer of such
Ownership Interest, which consent may be withheld in the Company’s sole discretion; and (iii) to provide a certificate to the
Trustee in the form attached hereto as Exhibit I.

(ii)                The Trustee shall register the Transfer of any Residual Certificate only if it shall have received the Transferee
Affidavit and Agreement, a certificate of the Holder requesting such transfer in the form attached hereto as Exhibit J and all of
such other documents as shall have been reasonably required by the Trustee as a condition to such registration.

(iii)               (A)          If any “disqualified organization” (as defined in Section
860E(e)(5) of the Code) shall become a holder of a Residual Certificate, then the last preceding Permitted Transferee shall be
restored, to the extent permitted by law, to all rights and obligations as Holder thereof retroactive to the date of registration
of such Transfer of such Residual Certificate. If any Non-U.S. Person shall become a holder of a Residual Certificate, then the
last preceding holder which is a U.S. Person shall be restored, to the extent permitted by law, to all rights and obligations as
Holder thereof retroactive to the date of registration of the Transfer to such Non-U.S. Person of such Residual Certificate. If a
transfer of a Residual Certificate is disregarded pursuant to the provisions of Treasury Regulations Section 1.860E-1 or Section
1.860G-3, then the last preceding Permitted Transferee shall be restored, to the extent permitted by law, to all rights and
obligations as Holder thereof retroactive to the date of registration of such Transfer of such Residual Certificate. Neither the
Trust nor the Trustee shall be under any liability to any Person for any registration of Transfer of a Residual Certificate that is
in fact not permitted by this Section 5.01(c) or for making any payments due on such Certificate to the holder thereof or for
taking any other action with respect to such holder under the provisions of this Agreement.

 

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(B)           If any purported Transferee shall become a Holder of a
Residual Certificate in violation of the restrictions in this Section 5.01(c) and to the extent that the retroactive restoration of
the rights of the Holder of such Residual Certificate as described in clause (iii)(A) above shall be invalid, illegal or
unenforceable, then the Company shall have the right, without notice to the Holder or any prior Holder of such Residual
Certificate, to sell such Residual Certificate to a purchaser selected by the Company on such terms as the Company may choose. Such
purported Transferee shall promptly endorse and deliver each Residual Certificate in accordance with the instructions of the
Company. Such purchaser may be the Company itself or any affiliate of the Company. The proceeds of such sale, net of the
commissions (which may include commissions payable to the Company or its affiliates), expenses and taxes due, if any, shall be
remitted by the Company to such purported Transferee. The terms and conditions of any sale under this clause (iii)(B) shall be
determined in the sole discretion of the Company, and the Company shall not be liable to any Person having an Ownership Interest in
a Residual Certificate as a result of its exercise of such discretion.

(iv)              The
Company, on behalf of the Trustee, shall make available, upon written request from the Trustee, all information necessary to
compute any tax imposed (A) as a result of the Transfer of an Ownership Interest in a Residual Certificate to any Person who is not
a Permitted Transferee, including the information regarding “excess inclusions” of such Residual Certificates required
to be provided to the Internal Revenue Service and certain Persons as described in Treasury Regulation Section 1.860D-1(b)(5), and
(B) as a result of any regulated investment company, real estate investment trust, common trust fund, partnership, trust, estate or
organizations described in Section 1381 of the Code having as among its record holders at any time any Person who is not a
Permitted Transferee. Reasonable compensation for providing such information may be required by the Company from such
Person.

(v)                The provisions of this Section 5.01 set forth prior to this Section (v) may be modified, added to or eliminated by the
Company and the Trustee, provided that there shall have been delivered to the Trustee the following:

 

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(A)          written notification from each of the Rating Agencies to the
effect that the modification, addition to or elimination of such provisions will not cause such Rating Agency to downgrade its
then-current Ratings of the Certificates; and

(B)           an Opinion of Counsel, in form and substance satisfactory to
the Company (as evidenced by a certificate of the Company), to the effect that such modification, addition to or absence of such
provisions will not cause REMIC I and REMIC II to cease to qualify as a REMIC and will not create a risk that (1) REMIC I and REMIC
II may be subject to an entity-level tax caused by the Transfer of any Residual Certificate to a Person which is not a Permitted
Transferee or (2) a Certificateholder or another Person will be subject to a REMIC-related tax caused by the Transfer of a Residual
Certificate to a Person which is not a Permitted Transferee.

(vi)              The following
legend shall appear on all Residual Certificates:

ANY RESALE, TRANSFER OR OTHER
DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE COMPANY AND THE
TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT EITHER (A) THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN
GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY ORGANIZATION (OTHER
THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH
ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF
THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), OR (C) BEING HEREINAFTER REFERRED TO AS A
“DISQUALIFIED ORGANIZATION”), OR (D) AN AGENT OF A DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO
ENABLE THE TRANSFEROR TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX. SUCH AFFIDAVIT SHALL INCLUDE CERTAIN REPRESENTATIONS AS TO THE
FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE
OR OTHER DISPOSITION OF THIS CLASS R CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH
REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH
HOLDER OF THE CLASS R CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.

(vii)             The Tax Matters Person
for each of REMIC I and REMIC II, while not a Disqualified Organization, shall be the tax matters person for the related REMIC
within the meaning of Section 6231(a)(7) of the Code and Treasury Regulation Section 1.860F-4(d).

 

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(d)           In the
case of any Junior Subordinate Certificate presented for registration in the name of any Person, the Trustee shall require (i) an
officer’s certificate substantially in the form of Exhibit N attached hereto acceptable to and in form and substance
satisfactory to the Trustee and the Company, which officer’s certificate shall not be an expense of the Trust, the Trustee,
the Master Servicer or the Company, and (ii) only if such officer’s certificate indicates that a Benefit Plan Opinion is
delivered in connection therewith, a Benefit Plan Opinion.

In the case of any Residual Certificate presented for registration in
the name of any Person, the Trustee shall require (i) a Transferee Affidavit and Agreement which includes the representation set
forth in paragraph 19 of the form attached hereto as Exhibit J and (ii) only if the representation set forth in such paragraph 19
indicates that a Benefit Plan Opinion is delivered in connection therewith, a Benefit Plan Opinion.

(e)           No
transfer, sale, pledge or other disposition of a Junior Subordinate Certificate shall be made unless such transfer, sale, pledge or
other disposition is made in accordance with this Section 5.01(e) or Section 5.01(f).  Each Person who, at any time, acquires
any ownership interest in any Junior Subordinate Certificate shall be deemed by the acceptance or acquisition of such ownership
interest to have agreed to be bound by the following provisions of this Section 5.01(e) and Section 5.01(f), as applicable. No
transfer of a Junior Subordinate Certificate shall be deemed to be made in accordance with this Section 5.01(e) unless such
transfer is made pursuant to an effective registration statement under the Securities Act or unless the Trustee is provided with
the certificates and an Opinion of Counsel, if required, on which the Trustee may conclusively rely, to the effect that such
transfer is exempt from the registration requirements under the Securities Act, as follows:  In the event that a transfer is
to be made in reliance upon an exemption from the Securities Act, the Trustee shall require, in order to assure compliance with the
Securities Act, that the Certificateholder desiring to effect such transfer certify to the Trustee in writing, in substantially the
form attached hereto as Exhibit F, the facts surrounding the transfer, with such modifications to such Exhibit F as may be
appropriate to reflect the actual facts of the proposed transfer, and that the Certificateholder’s proposed transferee
certify to the Trustee in writing, in substantially the form attached hereto as Exhibit G, the facts surrounding the transfer, with
such modifications to such Exhibit G as may be appropriate to reflect the actual facts of the proposed transfer. If such
certificate of the proposed transferee does not contain substantially the substance of Exhibit G, the Trustee shall require an
Opinion of Counsel that such transfer may be made without registration, which Opinion of Counsel shall not be obtained at the
expense of the Trustee, the Trust or the Company. Such Opinion of Counsel shall allow for the forwarding, and the Trustee shall
forward, a copy thereof to the Rating Agencies. Notwithstanding the foregoing, any Junior Subordinate Certificate may be
transferred, sold, pledged or otherwise disposed of in accordance with the requirements set forth in Section 5.01(f).

(f)           
To effectuate a Certificate transfer of a Junior Subordinate Certificate in accordance with this Section 5.01(f), the proposed
transferee of such Certificate must provide the Trustee and the Company with an investment letter substantially in the form of
Exhibit L attached hereto, which investment letter shall not be an expense of the Trust, the Trustee or the Company, and which
investment letter states that, among other things, such transferee (i) is a “qualified institutional buyer” as defined
under Rule 144A, acting for its own account or the accounts of other “qualified institutional buyers” as defined under
Rule 144A, and (ii) is aware that the proposed transferor intends to rely on the exemption from registration requirements under the
Securities Act provided by Rule 144A. Notwithstanding the foregoing, the proposed transferee of such Certificate shall not be
required to provide the Trustee or the Company with Annex 1 or Annex 2 to the form of Exhibit L attached hereto if the Company so
consents prior to each such transfer. Such transfers shall be deemed to have complied with the requirements of this Section
5.01(f). The Holder of a Certificate desiring to effect such transfer does hereby agree to indemnify the Trust, the Trustee, the
Company, and the Certificate Registrar against any liability that may result if transfer is not made in accordance with this
Agreement.

 

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(g)          
(1)           In the case of any ERISA Restricted Certificate presented for
registration in the name of any Person, the prospective transferee shall be required to provide the Trustee and the Company (A) an
officer’s certificate substantially in the form of Exhibit O attached hereto acceptable to and in form and substance
satisfactory to the Trustee and the Company, which officer’s certificate shall not be an expense of the Trust, the Trustee,
the Delaware Trustee, the Master Servicer or the Company, and (B) only if such officer’s certificate indicates that a Benefit
Plan Opinion is delivered in connection therewith, a Benefit Plan Opinion.

(2)           Notwithstanding the foregoing, a certification (and, if
applicable, a Benefit Plan Opinion) as described in Section 5.01(g)(1) above will not be required with respect to the transfer of
any ERISA Restricted Certificate to a Clearing Agency, or for any subsequent transfer of any interest in a ERISA Restricted
Certificate for so long as such Certificate is a Book-Entry Certificate (each such ERISA Restricted Certificate, a
“Book-Entry ERISA Restricted Certificate”).  Any transferee of a Book-Entry ERISA Restricted Certificate
will be deemed to have represented, by virtue of its acquisition or holding of such Certificate (or interest therein), that either
(i) such transferee is not an employee benefit or other plan subject to the prohibited transaction provisions of ERISA or Section
4975 of the Code, or any person (including an investment manager, a named fiduciary or a trustee of any such plan) acting, directly
or indirectly, on behalf of or purchasing such Certificate with “plan assets” of any such plan (a “Plan
Investor”), (ii) such transferee is an insurance company, the source of funds to be used by it to acquire or hold such
Certificate is an “insurance company general account” (within the meaning of Department of Labor Prohibited Transaction
Class Exemption (“PTCE”) 95-60), and the conditions in Sections I and III of PTCE 95-60 have been satisfied
(each entity that satisfies this clause (ii), a “Complying Insurance Company”) or (iii) such Certificate was
rated “BBB-” or better (or its equivalent) by at least one of the Rating Agencies at the time of such
transferee’s acquisition of such Certificate (or interest therein).

(3)           If any Book-Entry ERISA Restricted Certificate (or any
interest therein) is acquired or held in violation of the provisions of Section 5.01(g)(2) above, then the last preceding
transferee that either (i) is not a Plan Investor, (ii) is a Complying Insurance Company or (iii) acquired such Certificate at a
time when such Certificate was rated “BBB-” or better (or its equivalent) by at least one of the Rating Agencies shall
be restored, to the extent permitted by law, to all rights and obligations as Beneficial Holder thereof retroactive to the date of
transfer of such Certificate by such preceding transferee.  Neither the Trust nor the Trustee shall be under any liability to
any Person for making any payments due on such Certificate to such preceding transferee.

 

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(4)           Any purported Beneficial Holder whose acquisition or holding
of any Book-Entry ERISA Restricted Certificate (or interest therein) was effected in violation of the restrictions in this Section
5.01(g) shall indemnify and hold harmless the Company, the Trustee, the Delaware Trustee, the Master Servicer, the Trust and the
Underwriter from and against any and all liabilities, claims, costs or expenses incurred by such parties as a result of such
acquisition or holding.

Section
5.02.         Certificates Issuable in Classes; Distributions of Principal and Interest; Authorized Denominations. The aggregate principal amount of the Certificates that may be authenticated and delivered under this Agreement is
limited to the aggregate Principal Balance of the Mortgage Loans as of the Cut-Off Date, as specified in the Preliminary Statement
to this Agreement, except for Certificates authenticated and delivered upon registration of transfer of, or in exchange for, or in
lieu of, other Certificates pursuant to Section 5.03. Such aggregate principal amount shall be allocated among one or more Classes
having designations, types of interests, initial per annum Certificate Interest Rates, initial Class Principal Balances and Final
Maturity Dates as specified in the Preliminary Statement to this Agreement. The aggregate Percentage Interest of each Class of
Certificates of which the Class Principal Balance equals zero as of the Cut-Off Date that may be authenticated and delivered under
this Agreement is limited to 100%. Certificates shall be issued in Authorized Denominations.

Section
5.03.         Registration of Transfer and Exchange of Certificates. The Trustee shall cause to be
maintained at one of its offices or at its designated agent, a Certificate Register in which there shall be recorded the name and
address of each Certificateholder. Subject to such reasonable rules and regulations as the Trustee may prescribe, the Certificate
Register shall be amended from time to time by the Trustee or its agent to reflect notice of any changes received by the Trustee or
its agent pursuant to Section 10.06. The Trustee hereby appoints itself as the initial Certificate Registrar.

Upon surrender for registration of transfer of any Certificate to the
Trustee at the Corporate Trust Office of the Trustee, or such other address or agency as may hereafter be provided to the Master
Servicer in writing by the Trustee, the Trustee shall execute, and the Trustee or any Authenticating Agent shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more new Certificates of Authorized Denominations. At the
option of the Certificateholders, Certificates may be exchanged for other Certificates in Authorized Denominations of like
Certificate Principal Balance or Percentage Interest, as applicable, upon surrender of the Certificates to be exchanged at any such
office or agency. Whenever any Certificates are so surrendered for exchange, the Trustee on behalf of the Trust shall execute, and
the Trustee, or any Authenticating Agent, shall authenticate and deliver, the Certificates which the Certificateholder making the
exchange is entitled to receive. Every Certificate presented or surrendered for transfer shall (if so required by the Trustee or
any Authenticating Agent) be duly endorsed by, or be accompanied by a written instrument of transfer in form satisfactory to the
Trustee or any Authenticating Agent and duly executed by, the Holder thereof or such Holder’s attorney duly authorized in
writing.

 

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A reasonable service charge may be made for any such exchange or
transfer of Certificates, and the Trustee may require payment of a sum sufficient to cover any tax or governmental charge that may
be imposed in connection with any exchange or transfer of Certificates.

All Certificates surrendered for exchange or transfer shall be
cancelled by the Trustee or any Authenticating Agent.

Section
5.04.         Mutilated, Destroyed, Lost or Stolen Certificates. If (i) any mutilated Certificate is
surrendered to the Trustee or any Authenticating Agent, or (ii) the Trustee or any Authenticating Agent receives evidence to their
satisfaction of the destruction, loss or theft of any Certificate, and there is delivered to the Trustee or any Authenticating
Agent such security or indemnity as may be required by them to save each of them and the Trust harmless, then, in the absence of
notice to the Trustee or any Authenticating Agent that such Certificate has been acquired by a protected purchaser, the Trustee
shall execute and the Trustee or any Authenticating Agent shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate, a new Certificate of like Certificate Principal Balance or Percentage Interest as
applicable. Upon the issuance of any new Certificate under this Section 5.04, the Trustee or any Authenticating Agent may require
the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee or any Authenticating Agent) connected therewith. Any replacement
Certificate issued pursuant to this Section 5.04 shall constitute complete and indefeasible evidence of ownership in REMIC II (or
with respect to the Class R Certificates, the residual ownership interests in REMIC I and REMIC II) as if originally issued,
whether or not the lost or stolen Certificate shall be found at any time.

Section
5.05.         Persons Deemed Owners. The Company, the Master Servicer, the Trust, the Trustee, the Delaware
Trustee and any agent of any of them may treat the Person in whose name any Certificate is registered as the owner of such
Certificate for the purpose of receiving distributions pursuant to Section 4.01 and Section 4.04 and for all other purposes
whatsoever, and neither the Company, the Master Servicer, the Trust, the Trustee, the Delaware Trustee, the Certificate Registrar
nor any agent of the Company, the Master Servicer, the Trust, the Trustee  or the Delaware Trustee shall be affected by notice
to the contrary.

Section
5.06.         Temporary Certificates. Upon the initial issuance of the Certificates, the Trustee on behalf
of the Trust may execute, and the Trustee or any Authenticating Agent shall authenticate and deliver, temporary Certificates which
are printed, lithographed, typewritten or otherwise produced, in any Authorized Denomination, of the tenor of the definitive
Certificates in lieu of which they are issued and with such variations in form from the forms of the Certificates set forth as
Exhibits A, B and H hereto as the Trustee’s officers executing such Certificates may determine, as evidenced by their
execution of the Certificates.  Notwithstanding the foregoing, the Certificates may remain in the form of temporary
Certificates.

If temporary Certificates are issued, the Trustee shall cause
definitive Certificates to be prepared within ten Business Days after the Closing Date or as soon as practicable thereafter. After
preparation of definitive Certificates, the temporary Certificates shall be exchangeable for definitive Certificates upon surrender
of the temporary Certificates at the office or agency of the Trustee to be maintained as provided in Section 5.10 hereof, without
charge to the holder. Any tax or governmental charge that may be imposed in connection with any such exchange shall be borne by the
Master Servicer. Upon surrender for cancellation of any one or more temporary Certificates, the Trustee on behalf of the Trust
shall execute and the Trustee or any Authenticating Agent shall authenticate and deliver in exchange therefor a like principal
amount of definitive Certificates of Authorized Denominations. Until so exchanged, the temporary Certificates shall in all respects
be entitled to the same benefits under this Agreement as definitive Certificates.

 

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Section
5.07.         Book-Entry for Book-Entry Certificates. Notwithstanding the foregoing, the Book-Entry
Certificates, upon original issuance, shall be issued in the form of one or more typewritten Certificates of Authorized
Denomination representing the Book-Entry Certificates, to be delivered to DTC, the initial Clearing Agency, by, or on behalf of,
the Company. The Book-Entry Certificates shall initially be registered on the Certificate Register in the name of Cede & Co.,
the nominee of DTC, as the initial Clearing Agency, and no Beneficial Holder shall receive a definitive certificate representing
such Beneficial Holder’s interest in any Class of Book-Entry Certificate, except as provided above and in Section 5.09. Each
Book-Entry Certificate shall bear the following legend:

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a
New York corporation (“DTC”), to the Company or its agent for registration of transfer, exchange, or payment,
and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as
the registered owner hereof, Cede & Co., has an interest herein.

Unless and until definitive, fully registered Book-Entry
Certificates (the “Definitive Certificates”) have been issued to the Beneficial Holders pursuant to Section
5.09:

(a)           the provisions of this Section 5.07 shall be in full force
and effect with respect to the Book-Entry Certificates;

(b)           the Master Servicer and the Trustee may deal with the
Clearing Agency for all purposes with respect to the Book-Entry Certificates (including the making of distributions on the
Book-Entry Certificates) as the sole Certificateholder;

(c)           to the extent that the provisions of this Section 5.07
conflict with any other provisions of this Agreement, the provisions of this Section 5.07 shall control; and

(d)           the rights of the Beneficial Holders shall be exercised only
through the Clearing Agency and the DTC Participants and shall be limited to those established by law and agreements between such
Beneficial Holders and the Clearing Agency and/or the DTC Participants. Pursuant to the Depositary Agreement, unless and until
Definitive Certificates are issued pursuant to Section 5.09, the initial Clearing Agency will make book-entry transfers among the
DTC Participants and receive and transmit distributions of principal and interest on the related Class of Book-Entry Certificates
to such DTC Participants.

 

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For purposes of any provision of this Agreement requiring or
permitting actions with the consent of, or at the direction of, Holders of Book-Entry Certificates evidencing a specified
Percentage Interest, such direction or consent may be given by the Clearing Agency at the direction of Beneficial Holders owning
Book-Entry Certificates evidencing the requisite Percentage Interest represented by the Book-Entry Certificates. The Clearing
Agency may take conflicting actions with respect to the Book-Entry Certificates to the extent that such actions are taken on behalf
of the Beneficial Holders.

Section
5.08.         Notices to Clearing Agency. Whenever notice or other communication to the Certificateholders
is required under this Agreement, unless and until Definitive Certificates shall have been issued to the related Certificateholders
pursuant to Section 5.09, the Trustee shall give all such notices and communications specified herein to be given to Holders of the
Book-Entry Certificates to the Clearing Agency which shall give such notices and communications to the related DTC Participants in
accordance with its applicable rules, regulations and procedures.

Section
5.09.         Definitive Certificates. If (a) the Clearing Agency or the Master Servicer, with the consent
of the applicable DTC Participants, notifies the Trustee in writing that the Clearing Agency is no longer willing or able to
discharge properly its responsibilities under the Depositary Agreement with respect to the Book-Entry Certificates and the Trustee
or the Master Servicer is unable to locate a qualified successor, (b) the Master Servicer, at its option, advises the Trustee in
writing that it elects to terminate the book-entry system with respect to the Book-Entry Certificates through the Clearing Agency
or (c) after the occurrence of an Event of Default, Certificateholders holding Book-Entry Certificates evidencing Percentage
Interests aggregating not less than 66% of the aggregate Class Principal Balance of such Certificates advise the Trustee and the
Clearing Agency through DTC Participants in writing that the continuation of a book-entry system with respect to the Book-Entry
Certificates through the Clearing Agency is no longer in the best interests of the Certificateholders with respect to such
Certificates, the Trustee shall notify all Certificateholders of Book-Entry Certificates of the occurrence of any such event and of
the availability of Definitive Certificates. Upon surrender to the Trustee of the Book-Entry Certificates by the Clearing Agency,
accompanied by registration instructions from the Clearing Agency for registration, the Trustee on behalf of the Trust shall
execute and the Trustee or any Authenticating Agent shall authenticate and deliver the Definitive Certificates. Neither the
Company, the Master Servicer, the Trust nor the Trustee shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions. Upon the issuance of Definitive Certificates for all
of the Certificates all references herein to obligations imposed upon or to be performed by the Clearing Agency shall be deemed to
be imposed upon and performed by the Trustee, to the extent applicable with respect to such Definitive Certificates, and the
Trustee shall recognize the Holders of Definitive Certificates as Certificateholders hereunder.

Section
5.10.         Office for Transfer of Certificates. The Trustee shall maintain in New York, New York, an
office or agency where Certificates may be surrendered for registration of transfer or exchange. The Corporate Trust Office is
initially designated for said purpose.

 

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Section
5.11.         Nature of Certificates. The Certificates shall be personal property giving only the rights
specifically set forth therein and in this Agreement.  The Certificates shall have no preemptive or similar rights and when
issued and delivered to the Holders against payment of the purchase price therefor will be fully paid and nonassessable by the
Trust.  The Holders of the Certificates, in their capacities as such, shall be entitled to the same limitation of personal
liability extended to stockholders of private corporations for profit organized under the General Corporation Law of the State of
Delaware. THE RECEIPT AND ACCEPTANCE OF A CERTIFICATE OR ANY INTEREST THEREIN BY OR ON BEHALF OF A HOLDER OR ANY BENEFICIAL OWNER,
WITHOUT ANY SIGNATURE OR FURTHER MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE HOLDER AND ALL
OTHERS HAVING A BENEFICIAL INTEREST IN SUCH CERTIFICATE OF ALL THE TERMS AND PROVISIONS OF THIS AGREEMENT, AND SHALL CONSTITUTE THE
AGREEMENT OF THE TRUST, SUCH HOLDER AND SUCH OTHERS THAT THE TERMS AND PROVISIONS OF THIS AGREEMENT SHALL BE BINDING, OPERATIVE AND
EFFECTIVE AS BETWEEN THE TRUST AND SUCH HOLDER AND SUCH OTHERS.

ARTICLE VI

The Company and the Master Servicer

Section
6.01.         Liability of the Company and the Master Servicer. The Company and the Master Servicer shall be
liable in accordance herewith only to the extent of the obligations specifically imposed upon and undertaken by the Company or the
Master Servicer, as applicable, herein.

Section
6.02.         Merger or Consolidation of the Company, or the Master Servicer. Any Corporation into which the
Company or the Master Servicer may be merged or consolidated, or any Corporation resulting from any merger, conversion or
consolidation to which the Company or the Master Servicer shall be a party, or any Corporation succeeding to the business of the
Company or the Master Servicer, shall be the successor of the Company or the Master Servicer hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

Section
6.03.         Limitation on Liability of the Company, the Master Servicer and Others. Neither the Company
nor the Master Servicer nor any of the directors, officers, employees or agents of the Company or the Master Servicer shall be
under any liability to the Trust, the Holders of the REMIC I Regular Interests or the Certificateholders for any action taken by
such Person or by a Servicer or for such Person's or Servicer's refraining from the taking of any action in good faith pursuant to
this Agreement, or for errors in judgment; provided, however, that this provision shall not protect the Company, the Master
Servicer or any such Person against any liability which would otherwise be imposed by reason of willful misfeasance, bad faith or
gross negligence in the performance of duties or by reason of reckless disregard of duties and obligations hereunder. The Company,
the Master Servicer and any director, officer, employee or agent of the Company or the Master Servicer may rely in good faith on
any document of any kind properly executed and submitted by any Person respecting any matters arising hereunder. The Company, the
Master Servicer and any director, officer, employee or agent of the Company or the Master Servicer shall be indemnified by the
Trust and held harmless against any loss, liability or expense incurred in connection with any legal action relating to this
Agreement or the Certificates, other than any loss, liability or expense relating to any Mortgage Loan (other than as otherwise
permitted in this Agreement) or incurred by reason of willful misfeasance, bad faith or gross negligence in the performance of
duties hereunder or by reason of reckless disregard of obligations and duties hereunder. The Company and the Master Servicer shall
not be under any obligation to appear in, prosecute or defend any legal action which is not incidental to its duties to service the
Mortgage Loans in accordance with this Agreement and which in its opinion may involve it in any expense or liability; provided,
however, that the Company or the Master Servicer may in its discretion undertake any such action which it may deem necessary or
desirable with respect to the Mortgage Loans, this Agreement, the Certificates or the rights and duties of the parties hereto and
the interests of the Certificateholders hereunder. In such event, the legal expenses and costs of such action and any liability
resulting therefrom shall be expenses, costs and liabilities of the Trust and the Company and the Master Servicer shall be entitled
to be reimbursed therefor out of the Certificate Account, as provided by Section 3.05.

 

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Section
6.04.         The Company and the Master Servicer not to Resign. The Company shall not resign from the
obligations and duties (including, without limitation, its obligations and duties as initial Master Servicer) hereby imposed on it
except upon determination that its duties hereunder are no longer permissible under applicable law. Any successor Master Servicer
shall not resign from the obligations and duties hereby imposed on it except upon determination that its duties hereunder are no
longer permissible under applicable law. Any such determination permitting the resignation of the Company or any successor Master
Servicer shall be evidenced by an Opinion of Counsel to such effect delivered to the Trustee. No such resignation shall become
effective until the Trustee or a successor Master Servicer shall have assumed the Master Servicer's responsibilities and
obligations in accordance with Section 7.02 hereof.

If the Company is no longer acting as Master Servicer, then the
successor Master Servicer shall give prompt written notice to the Company of any information received by such successor Master
Servicer which affects or relates to an ongoing obligation or right of the Company under this Agreement.

Section
6.05.         Trustee Access. The Master Servicer shall afford the
Company and the Trustee, upon reasonable notice, during normal business hours access to all records maintained by the Master
Servicer, in respect of the Mortgage Loans and in respect of its rights and obligations hereunder and access to such of its
officers as are responsible for such obligations.  Upon reasonable request, the Master Servicer, shall furnish the Company and
the Trustee with its most recent financial statements (or, for so long as the Company is the Master Servicer, the most recent
consolidated financial statements for the Company appearing in the audited financial statements of Washington Mutual, Inc., or the
entity with whose financial statements the financial statements of the Company are consolidated) and such other information as it
possesses, and which it is not prohibited by law or, to the extent applicable, binding obligations to third parties with respect to
confidentiality from disclosing, regarding its business, affairs, property and condition, financial or otherwise.

 

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ARTICLE VII

Default 

Section
7.01.         Events of Default. (a) In case one or more of the following Events of Default by the Master
Servicer or by a successor Master Servicer shall occur and be continuing, that is to say:

(i)                  Any failure by the Master Servicer to deposit into the Certificate Account any payment required to be deposited therein by
the Master Servicer under the terms of this Agreement which continues unremedied for a period of five Business Days after the date
upon which written notice of such failure, requiring the same to be remedied, shall have been given to the Master Servicer by the
Trustee or to the Master Servicer and the Trustee by the Holders of Certificates evidencing Percentage Interests aggregating not
less than 25% of REMIC II; or

(ii)                Failure on the part of the Master Servicer duly to observe or perform in any material respect any other of the covenants
or agreements on the part of the Master Servicer contained in the Certificates or in this Agreement which continues unremedied for
a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been
given to the Master Servicer by the Trustee, or to the Master Servicer and the Trustee by the Holders of Certificates evidencing
Percentage Interests aggregating not less than 25% of REMIC II; or

(iii)               A decree or order of a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a
trustee in bankruptcy, conservator or receiver or liquidator in any bankruptcy, insolvency, readjustment of debt, marshalling of
assets and liabilities or similar proceedings, or for the winding‐up or liquidation of its affairs, shall have been entered
against the Master Servicer and such decree or order shall have remained in force undischarged or unstayed for a period of 60 days;
or

(iv)              The
Master Servicer shall consent to the appointment of a trustee in bankruptcy, conservator or receiver or liquidator in any
bankruptcy, insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to the
Master Servicer or of or relating to all or substantially all of its property; or

(v)                The Master Servicer shall admit in writing its inability to pay its debts generally as they become due, file a petition to
take advantage of any applicable bankruptcy, insolvency or reorganization statute, make an assignment for the benefit of its
creditors, or voluntarily suspend payment of its obligations; or

(vi)              Any
failure of the Master Servicer to make any Monthly P&I Advance (other than a Nonrecoverable Advance) which continues unremedied
at the opening of business on the Distribution Date in respect of which such Monthly P&I Advance was to have been
made;

then, and in each and every such case, so long as an Event of
Default shall not have been remedied, either the Trustee or the Holders of Certificates evidencing Percentage Interests aggregating
not less than 25% of REMIC II, by notice in writing to the Company and the Master Servicer (and to the Trustee if given by the

 

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Certificateholders, in which case such notice shall set forth evidence reasonably satisfactory to the Trustee that such Event of
Default has occurred and shall not have been remedied) may terminate all of the rights (other than its right to reimbursement for
advances) and obligations of the Master Servicer, including its right to the Master Servicing Fee, under this Agreement and in and
to the Mortgage Loans and the proceeds thereof, if any. Such determination shall be final and binding. On or after the receipt by
the Master Servicer of such written notice, all authority and power of the Master Servicer under this Agreement, whether with
respect to the Certificates or the Mortgage Loans or otherwise, shall pass to and be vested in the Trustee pursuant to and under
this Section 7.01; and, without limitation, the Trustee is hereby authorized and empowered to execute and deliver, on behalf of the
Master Servicer, as attorney‐in‐fact or otherwise, any and all documents and other instruments, and to do or accomplish
all other acts or things necessary or appropriate to effect the purposes of such notice of termination, whether to complete the
transfer and endorsement or assignment of the Mortgage Loans and related documents, or otherwise. The Master Servicer agrees to
cooperate with the Trustee in effecting the termination of the Master Servicer's responsibilities and rights hereunder, including,
without limitation, the transfer to the Trustee for administration by it of all cash amounts which shall at the time be credited by
the Master Servicer to the Certificate Account or thereafter be received with respect to the Mortgage Loans.

Notwithstanding the foregoing, if an Event of Default described in
clause (vi) of this Section 7.01(a) shall occur, the Trustee shall, by notice in writing to the Master Servicer, which may be
delivered by telecopy, immediately suspend all of the rights and obligations of the Master Servicer thereafter arising under this
Agreement, but without prejudice to any rights it may have as a Certificateholder or to reimbursement of Monthly P&I Advances
and other advances of its own funds, and the Trustee shall act as provided in Section 7.02 to carry out the duties of the Master
Servicer, including the obligation to make any Monthly P&I Advance the nonpayment of which was an Event of Default described in
clause (vi) of this Section 7.01(a). Any such action taken by the Trustee must be prior to the distribution on the relevant
Distribution Date. If the Master Servicer shall within two Business Days following such suspension remit to the Trustee the amount
of any Monthly P&I Advance the nonpayment of which by the Master Servicer was an Event of Default described in clause (vi)
of this Section 7.01(a), the Trustee, subject to the last sentence of this paragraph, shall permit the Master Servicer to
resume its rights and obligations as Master Servicer hereunder. The Master Servicer agrees that it will reimburse the Trustee for
actual, necessary and reasonable costs incurred by the Trustee because of action taken pursuant to clause (vi) of this Section
7.01(a). The Master Servicer agrees that if an Event of Default as described in clause (vi) of this Section 7.01(a) shall occur
more than two times in any twelve month period, the Trustee shall be under no obligation to permit the Master Servicer to resume
its rights and obligations as Master Servicer hereunder.

(b)           In
case one or more of the following Events of Default by the Company shall occur and be continuing, that is to say:

(i)                  Failure on the part of the Company duly to observe or perform in any material respect any of the covenants or agreements
on the part of the Company contained in the Certificates or in this Agreement which continues unremedied for a period of 60 days
after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Company by
the Trustee, or to the Company and the Trustee by the Holders of Certificates evidencing Percentage Interests aggregating not less
than 25% of REMIC II; or

 

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(ii)                A decree or order of a court or agency or supervisory authority having jurisdiction in the premises for the appointment of
a trustee in bankruptcy, conservator or receiver or liquidator in any bankruptcy, insolvency, readjustment of debt, marshalling of
assets and liabilities or similar proceedings, or for the winding‐up or liquidation of its affairs, shall have been entered
against the Company and such decree or order shall have remained in force undischarged or unstayed for a period of 60 days;
or

(iii)               The Company shall consent to the appointment of a trustee in bankruptcy, conservator or receiver or liquidator in any
bankruptcy, insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to the
Company or of or relating to all or substantially all of its property; or

(iv)              The
Company shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage of
any applicable bankruptcy, insolvency or reorganization statute, make an assignment for the benefit of creditors, or voluntarily
suspend payment of its obligations;

then, and in each and every such case, so long as such Event of
Default shall not have been remedied, the Holders of Certificates evidencing Percentage Interests aggregating not less than 25% of
REMIC II, by notice in writing to the Company and the Trustee, may direct the Trustee in accordance with Section 10.03 to institute
an action, suit or proceeding in its own name as Trustee hereunder to enforce the Company's obligations hereunder.

(c)           In any
circumstances in which this Agreement states that Certificateholders owning Certificates evidencing a certain Percentage Interest
in REMIC II may take certain action, such action shall be taken by the Trustee, but only if the requisite percentage of
Certificateholders required under this Agreement for taking like action or giving like instruction to the Trustee under this
Agreement shall have so directed the Trustee in writing.

Section
7.02.         Trustee to Act; Appointment of Successor.

(a)           On and
after the date on which the Master Servicer receives a notice of termination pursuant to Section 7.01 or the Master Servicer
resigns pursuant to Section 6.04, the Trustee shall be the successor in all respects to the Master Servicer under this Agreement
and under the Selling and Servicing Contracts with respect to the Mortgage Loans in the Mortgage Pool and with respect to the
transactions set forth or provided for herein and shall have all the rights and powers and be subject to all the responsibilities,
duties and liabilities relating thereto arising on or after such date of termination or resignation placed on the Master Servicer
by the terms and provisions hereof and thereof, and shall have the same limitations on liability herein granted to the Master
Servicer; provided, that the Trustee shall not under any circumstances be responsible for any representations and warranties
or any Purchase Obligation of the Company or any liability incurred by the Master Servicer prior to such date of termination or
resignation and the Trustee shall not be obligated to make a Monthly P&I Advance if it is prohibited by law from so doing. As
compensation therefor, the Trustee shall be entitled to all funds relating to the Mortgage Loans which the Master Servicer would
have been entitled to retain or to withdraw from the Certificate Account if the Master Servicer had continued to act hereunder,
except for those amounts due  

 

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to the Master Servicer as reimbursement for advances previously made or amounts previously expended
and are otherwise reimbursable hereunder. Notwithstanding the above, the Trustee may, if it shall be unwilling to so act, or shall
if it is unable to so act, appoint, or petition a court of competent jurisdiction to appoint, any established housing and home
finance institution having a net worth of not less than $10,000,000 as the successor to the Master Servicer hereunder in the
assumption of all or any part of the responsibilities, duties or liabilities of the Master Servicer hereunder. Pending any such
appointment, the Trustee is obligated to act in such capacity. In connection with such appointment and assumption, the Trustee may
make such arrangements for the compensation of such successor out of payments on Mortgage Loans as it and such successor shall
agree; provided, however, that no such compensation shall, together with the compensation to the Trustee, be in excess of
that permitted the Master Servicer hereunder. The Trustee and such successor shall take such actions, consistent with this
Agreement, as shall be necessary to effectuate any such succession.

(b)           In
connection with any termination or resignation of the Master Servicer hereunder, in the event that any of the Mortgage Loans are
MERS Loans, either (i) the successor Master Servicer (including the Trustee if the Trustee is acting as successor Master Servicer)
shall represent and warrant that it is a member of MERS in good standing and shall agree to comply in all material respects with
the rules and procedures of MERS in connection with the servicing of the MERS Loans, in which case the predecessor Master Servicer
shall cooperate with the successor Master Servicer in registering the transfer of servicing of the MERS Loans to the successor
Master Servicer on the MERS® System in accordance with MERS’ rules and procedures, or (ii) if the successor Master
Servicer is not a member of MERS, the predecessor Master Servicer shall cooperate with the successor Master Servicer in (A)
de-registering the MERS Loans from the MERS® System and (B) causing MERS to execute and deliver an assignment from MERS to the
Trust of the Mortgage securing each MERS Loan in recordable form and in the form otherwise provided under clause (X)(iii) of the
definition of “Mortgage File” herein and to execute and deliver such other notices, documents and other instruments as
may be necessary or desirable to effect such de-registration and assignment. The predecessor Master Servicer shall bear any and all
fees of MERS and all fees and costs of preparing and recording any assignments of Mortgages as required under this Section
7.02(b).

Section
7.03.         Notification to Certificateholders. Upon any such termination or appointment of a successor to
the Master Servicer, the Trustee shall give prompt written notice thereof to the Certificateholders at their respective addresses
appearing in the Certificate Register.

 

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ARTICLE VIII

Concerning the Trustees

Section 8.01.         Duties of Trustees.

(a)           The
Trustee, prior to the occurrence of an Event of Default and after the curing of all Events of Default which may have occurred,
undertakes to perform such duties and only such duties as are specifically set forth in this Agreement. In case an Event of Default
has occurred (which has not been cured or waived) the Trustee shall exercise such of the rights and powers vested in it by this
Agreement, and use the same degree of care and skill in its exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person’s own affairs.

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

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

(i)                  Prior to the occurrence of an Event of Default and after the curing of all such Events of Default which may have occurred,
the duties and obligations of the Trustee shall be determined solely by the express provisions of this Agreement,

(ii)                Neither the Trustee nor the Delaware Trustee shall be liable except for the performance of such duties and obligations as
are specifically set forth in this Agreement, no implied covenants or obligations shall be read into this Agreement against the
Trustee or the Delaware Trustee, and, in the absence of bad faith on the part of the Trustee or the Delaware Trustee, such trustee
may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to such trustee and conforming to the requirements of this Agreement; and

(iii)               Neither the Trustee nor the Delaware Trustee shall be personally liable with respect to any action taken or omitted to be taken
by it in good faith in accordance with the direction of the Certificateholders holding Certificates which evidence Percentage
Interests aggregating not less than 25% of REMIC II relating to the time, method and place of conducting any proceeding for any
remedy available to such trustee, or relating to the exercise of any trust or power conferred upon such trustee under this
Agreement.

(d)           Within
ten Business Days after the occurrence of any Event of Default known to the Trustee, the Trustee shall transmit by mail to the
Rating Agencies notice of each Event of Default. Within 90 days after the occurrence of any Event of Default known to the Trustee,
the Trustee shall transmit by mail to all Certificateholders (with a copy to the Rating Agencies) notice of each Event of Default,
unless such Event of Default shall have been cured or waived; provided,  

 

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however, the Trustee shall be protected in withholding such
notice if and so long as a Responsible Officer of the Trustee in good faith determines that the withholding of such notice is in
the best interests of the Certificateholders; and provided, further, that in the case of any Event of Default of the character
specified in Section 7.01(i) and Section 7.01(ii) no such notice to Certificateholders or to the Rating Agencies shall be given
until at least 30 days after the occurrence thereof.

Section
8.02.         Certain Matters Affecting the Trustees. Except as otherwise provided in Section
8.01:

(i)                  Each of the Trustee and the Delaware Trustee may request and rely upon and shall be protected in acting or refraining from
acting upon any resolution, Officer’s Certificate, certificate of auditors or any other certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond or other paper or document believed by it to be genuine and to
have been signed or presented by the proper party or parties;

(ii)                Each of the Trustee and the Delaware Trustee may consult with counsel and any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in
accordance with such Opinion of Counsel;

(iii)               Neither the Trustee nor the Delaware Trustee shall be personally liable for any action taken or omitted by it in good faith and
reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this
Agreement;

(iv)              Prior
to the occurrence of an Event of Default hereunder and after the curing of all Events of Default which may have occurred, neither
the Trustee nor the Delaware Trustee shall be bound to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document,
unless requested in writing to do so by the Holders of Certificates evidencing Percentage Interests aggregating not less than 25%
of REMIC II; provided, however, that if the payment within a reasonable time to the Trustee or the Delaware Trustee of the costs,
expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of such trustee, not
reasonably assured to such trustee by the security, if any, afforded to it by the terms of this Agreement, such trustee may require
reasonable indemnity against such expense or liability as a condition to proceeding;

(v)                Each of the Trustee and the Delaware Trustee may execute the trust or any of the powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys selected by it with reasonable care or (as in the case of the
Initial Custodian) designated by the Company;

 

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(vi)              Neither the Trustee nor the Delaware Trustee shall be deemed to have knowledge or notice of any matter, including without
limitation an Event of Default, unless actually known by a Responsible Officer, or unless written notice thereof referencing this
Agreement or the Certificates is received at the Notice Address of such trustee;

(vii)             In no event
shall the Trustee or the Delaware Trustee be held liable for acts or omissions of the Master Servicer or the other trustee
(excepting the Trustee’s own actions as Master Servicer).   No provision of this Agreement shall require the
Trustee or the Delaware Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of
any of its duties hereunder (except for the giving of required notices), or in the exercise of any of its rights or powers, if it
shall have reasonable grounds for believing the repayment of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it;

(viii)           When the Trustee is
acting as Master Servicer pursuant to Section 7.02, and to the extent permitted under applicable law, the Trustee is hereby
authorized, in making or disposing of any investment permitted hereunder, to deal with itself (in its individual capacity) or with
any one or more of its affiliates, whether it or its affiliate is acting as an agent of the Trustee or of any third person or
dealing as principal for its own account;

(ix)              Except as expressly provided in this Agreement, in no event shall the Trustee be under any duty or obligation to monitor,
determine, investigate or compel compliance by the Trust with the requirements of the Statutory Trust Statute; and

(x)                In no event shall the Trustee be obligated or responsible for preparing, executing, filing or delivering in respect of the
Trust or another party either (A) any report or filing required by the Securities and Exchange Commission to be prepared, executed,
filed or delivered in respect of the Trust or another party or (B) any certification in respect of a report or filing required by
the Securities and Exchange Commission.

Section
8.03.         Trustees Not Liable for Certificates or Mortgage Loans. The recitals contained herein (other
than those relating to the due organization, power and authority of the Trustee and the Delaware Trustee) and in the Certificates
(other than the execution of, and certificate of authentication on, the Certificates) shall be taken as the statements of the
Company or the Trust, as applicable, and neither the Trustee nor the Delaware Trustee assumes any responsibility for their
correctness. Neither the Trustee nor the Delaware Trustee makes any representations as to the validity or sufficiency of this
Agreement or of the Certificates or any Mortgage Loan. Neither the Trustee nor the Delaware Trustee shall be accountable for the
use or application by the Company or the Trust, as applicable, of any of the Certificates or of the proceeds of such Certificates,
or for the use or application of any funds paid to the Master Servicer, the Servicers or the Company in respect of the Mortgage
Loans or deposited into the Custodial Accounts for P&I, any Buydown Fund Account, or the Custodial Accounts for P&I by any
Servicer or into the Investment Account, or the Certificate Account by the Master Servicer or the Company.

 

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Section
8.04.         Trustees May Own Certificates. The Trustee, the Delaware Trustee or any agent or affiliate of
such trustee, in its individual or any other capacity, may become the owner or pledgee of Certificates with the same rights it
would have if it were not trustee.

Section
8.05.         The Master Servicer to Pay Trustees’ Fees and Expenses. Subject to separate written
agreements with the Trustee and the Delaware Trustee, the Master Servicer covenants and agrees to, and the Master Servicer shall,
pay each of the Trustee and the Delaware Trustee from time to time, and such trustee shall be entitled to payment, for all services
rendered by it in the execution of the trust hereby created and in the exercise and performance of any of the powers and duties
hereunder of such trustee. Except as otherwise expressly provided herein, the Master Servicer shall pay or reimburse each of the
Trustee and the Delaware Trustee upon such trustee’s request for all reasonable expenses and disbursements incurred or made
by such trustee in accordance with any of the provisions of this Agreement and indemnify such trustee from any loss, liability or
expense incurred by it hereunder (including the reasonable compensation and the expenses and disbursements of its counsel and of
all persons not regularly in its employ and any expenses which arise out of or are imposed upon the Trustee or the Delaware Trustee
in connection with the creation, operation or termination of the Trust) except any such expense or disbursement as may arise from
its own negligence or bad faith. Such obligation shall survive the termination of this Agreement or resignation or removal of the
Trustee or the Delaware Trustee. The Tax Matters Person shall, at its expense, prepare or cause to be prepared all federal and
state income tax and franchise tax and information returns relating to REMIC I or REMIC II required to be prepared or filed by the
Trustee or the Delaware Trustee and shall indemnify the Trustee and the Delaware Trustee for any liability of such trustees arising
from any error in such returns.

Section
8.06.         Eligibility Requirements for Trustees. The Trustee hereunder shall at all times be (i) an
institution insured by the FDIC, (ii) a Corporation organized and doing business under the laws of the United States of America or
of any state, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of not less than
$50,000,000 and subject to supervision or examination by federal or state authority and (iii) acceptable to the Rating Agencies. If
such Corporation publishes reports of condition at least annually, pursuant to law or to the requirements of any aforementioned
supervising or examining authority, then for the purposes of this Section 8.06, the combined capital and surplus of such
Corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so
published.  The Delaware Trustee hereunder shall at all times have its principal place of business in the State of Delaware
and shall satisfy the applicable requirements under the laws of the State of Delaware authorizing it to act as the Delaware trustee
of the Trust.  In case at any time the Trustee or the Delaware Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.06, such trustee shall resign immediately in the manner and with the effect specified in Section
8.07.

Section
8.07.         Resignation and Removal of Trustees. Each of the Trustee and the Delaware Trustee may at any
time resign and be discharged from the trust hereby created by giving written notice thereof to the Master Servicer. Upon receiving
such notice of resignation, the Master Servicer shall promptly appoint a successor trustee by written instrument, in duplicate, one
copy of which instrument shall be delivered to the resigning trustee and one copy to the successor trustee. If no successor trustee
shall have been so appointed and shall have accepted appointment within 30 days after the giving of such notice of resignation, the
resigning trustee may petition any court of competent jurisdiction for the appointment of a successor trustee.

 

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If at any time the Trustee or the Delaware Trustee shall cease to be
eligible in accordance with the provisions of Section 8.06 and shall fail to resign after written request therefor by the Master
Servicer, or if at any time the Trustee or the Delaware Trustee shall become incapable of acting, or shall be adjudged bankrupt or
insolvent, or a receiver of such trustee or of its property shall be appointed, or any public officer shall take charge or control
of such trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Master
Servicer may remove such trustee and appoint a successor trustee by written instrument, in duplicate, copies of which instrument
shall be delivered to the trustee so removed, the trustee continuing in its capacity and the successor trustee.

The Holders of Certificates evidencing Percentage Interests
aggregating more than 50% of REMIC II may at any time remove the Trustee or the Delaware Trustee and appoint a successor trustee by
written instrument or instruments, in triplicate, signed by such Holders or their attorneys in-fact duly authorized, one complete
set of which instruments shall be delivered to the Master Servicer, one complete set to the Trustee so removed and one complete set
to the successor so appointed.

Any resignation or removal of the Trustee or the Delaware Trustee and
appointment of a successor trustee pursuant to any of the provisions of this Section 8.07 shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 8.08. Any expenses associated with the resignation of the Trustee or
the Delaware Trustee shall be borne by such trustee, and any expenses associated with the removal of the Trustee or the Delaware
Trustee shall be borne by the Master Servicer.

Section
8.08.         Successor Trustee. Any successor trustee appointed as provided in Section 8.07 shall execute,
acknowledge and deliver to the Master Servicer and to its predecessor trustee an instrument accepting such appointment hereunder,
and thereupon the resignation or removal of the predecessor trustee shall become effective and such successor trustee, without any
further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its predecessor
hereunder, with like effect as if originally named as Trustee or Delaware Trustee herein. The predecessor shall deliver to the
successor trustee all Mortgage Files, related documents, statements and all other property held by it hereunder, and the Master
Servicer and the predecessor trustee shall execute and deliver such instruments and do such other things as may reasonably be
required for more fully and certainly vesting and confirming in the successor trustee all such rights, powers, duties and
obligations.

No successor trustee shall accept appointment as provided in this
Section 8.08 unless at the time of such appointment such successor trustee shall be eligible under the provisions of Section
8.06.

Upon acceptance of appointment by a successor trustee as provided in
this Section 8.08, the Master Servicer shall mail notice of the succession of such trustee hereunder to (i) all Certificateholders
at their addresses as shown in the Certificate Register and (ii) the Rating Agencies. If the Master Servicer fails to mail such
notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to
be mailed.

 

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Section
8.09.         Merger or Consolidation of Trustee. Any Corporation into which the Trustee or the Delaware
Trustee may be merged or converted or with which it may be consolidated, or any Corporation resulting from any merger, conversion
or consolidation to which the Trustee or the Delaware Trustee shall be a party, or any Corporation succeeding to the corporate
trust business of such trustee, shall be the successor of such trustee hereunder, provided such resulting or successor Corporation
shall be eligible under the provisions of Section 8.06, without the execution or filing of any paper or any further act on the part
of any of the parties hereto, anything herein to the contrary notwithstanding.

Section
8.10.         Appointment of Co-Trustee or Separate Trustee. Notwithstanding any other provisions hereof, at
any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the assets of the Trust may at
the time be located, the Master Servicer and the Trustee or the Delaware Trustee, as applicable, acting jointly shall have the
power and shall execute and deliver all instruments to appoint one or more Persons approved by such trustee to act as co-trustee or
co-trustees, jointly with such trustee, or separate trustee or separate trustees, of all or any part of the assets of the Trust and
to vest in such Person or Persons, in such capacity, such title to the assets of the Trust, or any part thereof, and, subject to
the other provisions of this Section 8.10, such powers, duties, obligations, rights and trusts as the Master Servicer and the
Trustee or the Delaware Trustee, as applicable, may consider necessary or desirable; provided, that the Trustee or the Delaware
Trustee, as applicable, shall remain liable for all of its obligations and duties under this Agreement. If the Master Servicer
shall not have joined in such appointment within 15 days after the receipt by it of a request so to do, or in case an Event of
Default shall have occurred and be continuing, the Trustee or the Delaware Trustee, as applicable, alone shall have the power to
make such appointment; provided, that such trustee shall remain liable for all of its obligations and duties under this Agreement.
No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section
8.06 hereunder and no notice to Certificateholders of the appointment of co-trustee(s) or separate trustee(s) shall be required
under Section 8.08 hereof.

In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 8.10, all rights, powers, duties and obligations conferred or imposed upon the Trustee or the Delaware
Trustee, as applicable, shall be conferred or imposed upon and exercised or performed by the Trustee or the Delaware Trustee, as
applicable, and such separate trustee or co-trustee jointly and severally, except to the extent that under any law of any
jurisdiction in which any particular act or acts are to be performed by the Trustee or the Delaware Trustee, as applicable (whether
as Trustee or Delaware Trustee hereunder or as successor to the Master Servicer hereunder), such trustee shall be incompetent or
unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title
to the assets of the Trust or any portion thereof in any such jurisdiction) shall be exercised and performed by such separate
trustee or co-trustee at the direction of the Trustee or the Delaware Trustee, as applicable.

Any notice, request or other writing given to the Trustee or the
Delaware Trustee shall be deemed to have been given to each of the then related separate trustee(s) and co-trustee(s), as
effectively as if given to each of them. Every instrument appointing any separate trustee(s) or co-trustee(s)
shall refer to this Agreement and 

 

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the conditions of this Article VIII. Each
separate trustee and co-trustee, upon its acceptance of the trusts conferred,
shall be vested with the estates or property specified in its instrument of
appointment, either jointly with the Trustee or the Delaware Trustee, as
applicable, or separately, as may be provided therein, subject to all the
provisions of this Agreement, specifically including every provision of this
Agreement relating to the conduct of, affecting the liability of, or affording
protection to, the Trustee or the Delaware Trustee, as applicable. Every such
instrument shall be filed with the Trustee or the Delaware Trustee, as
applicable.

Any separate trustee or co-trustee may, at any time, constitute the
Trustee or the Delaware Trustee, as applicable, its agent or attorney-in-fact, with full power and authority, to the extent not
prohibited by law, to do any lawful act under or in respect of this Agreement on its behalf and in its name. If any separate
trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies
and the trust shall vest in and be exercised by the Trustee or the Delaware Trustee, as applicable, to the extent permitted by law,
without the appointment of a new or successor trustee.

Section
8.11.         Authenticating Agents. The Trustee may appoint one or more Authenticating Agents which shall
be authorized to act on behalf of the Trustee in authenticating Certificates. Wherever reference is made in this Agreement to the
authentication of Certificates by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed
to include authentication on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on
behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent must be acceptable to the Master Servicer and must be a
corporation, trust company or banking association organized and doing business under the laws of the United States of America or of
any state, having an office and place of business in New York, New York, having a combined capital and surplus of at least
$15,000,000, authorized under such laws to do a trust business and subject to supervision or examination by federal or state
authorities.

Any corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which
any Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency business of any Authenticating
Agent, shall continue to be the Authenticating Agent so long as it shall be eligible in accordance with the provisions of the first
paragraph of this Section 8.11 without the execution or filing of any paper or any further act on the part of the Trustee or the
Authenticating Agent.

Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Trustee and the Master Servicer. The Trustee may, upon prior written approval of the Master Servicer,
at any time terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent
and to the Master Servicer. Upon receiving a notice of resignation or upon such a termination, or in case at any time any
Authenticating Agent shall cease to be eligible in accordance with the provisions of the first paragraph of this Section 8.11, the
Trustee may appoint, upon prior written approval of the Master Servicer, a successor Authenticating Agent, shall give written
notice of such appointment to the Master Servicer and shall mail notice of such appointment to all Certificateholders. Any
successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers, duties
and responsibilities of its predecessor hereunder, with like effect as if originally named as Authenticating Agent. Any reasonable
compensation paid to an Authenticating Agent shall be a reimbursable expense pursuant to Section 8.05 if paid by the
Trustee.

 

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Section
8.12.         Paying Agents. The Trustee may appoint one or more Paying Agents which shall be authorized to
act on behalf of the Trustee in making withdrawals from the Certificate Account, and distributions to Certificateholders as
provided in Section 4.01, Section 4.04(a) and Section 9.01(b) to the extent directed to do so by the Master Servicer. Wherever
reference is made in this Agreement to the withdrawal from the Certificate Account by the Trustee, such reference shall be deemed
to include such a withdrawal on behalf of the Trustee by a Paying Agent. Whenever reference is made in this Agreement to a
distribution by the Trustee or the furnishing of a statement to Certificateholders by the Trustee, such reference shall be deemed
to include such a distribution or furnishing on behalf of the Trustee by a Paying Agent. Each Paying Agent shall provide to the
Trustee such information concerning the Certificate Account as the Trustee shall request from time to time. Each Paying Agent must
be reasonably acceptable to the Master Servicer and must be a corporation, trust company or banking association organized and doing
business under the laws of the United States of America or of any state, having an office and place of business in New York, New
York, having a combined capital and surplus of at least $15,000,000, authorized under such laws to do a trust business and subject
to supervision or examination by federal or state authorities.

Any corporation into which any Paying Agent may be merged or converted
or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which any Paying
Agent shall be a party, or any corporation succeeding to the corporate agency business of any Paying Agent, shall continue to be
the Paying Agent provided that such corporation after the consummation of such merger, conversion, consolidation or succession
meets the eligibility requirements of this Section 8.12.

Any Paying Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Master Servicer; provided, that the Paying Agent has returned to the Certificate Account or
otherwise accounted, to the reasonable satisfaction of the Master Servicer, for all amounts it has withdrawn from the Certificate
Account. The Trustee may, upon prior written approval of the Master Servicer, at any time terminate the agency of any Paying Agent
by giving written notice of termination to such Paying Agent and to the Master Servicer. Upon receiving a notice of resignation or
upon such a termination, or in case at any time any Paying Agent shall cease to be eligible in accordance with the provisions of
the first paragraph of this Section 8.12, the Trustee may appoint, upon prior written approval of the Master Servicer, a successor
Paying Agent, shall give written notice of such appointment to the Master Servicer and shall mail notice of such appointment to all
Certificateholders. Any successor Paying Agent upon acceptance of its appointment hereunder shall become vested with all the
rights, powers, duties and responsibilities of its predecessor hereunder, with like effect as if originally named as Paying Agent.
Any reasonable compensation paid to any Paying Agent shall be a reimbursable expense pursuant to Section 8.05 if paid by the
Trustee.

Section
8.13.         Duties of Delaware Trustee.

 

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(a)           The
Delaware Trustee is appointed to serve as the trustee of the Trust in the State of Delaware for the sole purpose of satisfying the
requirement of Section 3807(a) of the Statutory Trust Statute that the Trust have at least one trustee with a principal place of
business in Delaware.  It is understood and agreed by the parties hereto that the Delaware Trustee shall have none of the
duties or liabilities of the Trustee.

(b)           The
duties of the Delaware Trustee shall be limited to (i) accepting legal process served on the Trust in the State of Delaware, (ii)
the execution of any certificates with respect to the Trust required to be filed with the Secretary of State which the Delaware
Trustee is required to execute under Section 3811 of the Statutory Trust Statute and (iii) such other duties as are set forth in
this Article VIII.  To the extent that, at law or in equity, the Delaware Trustee has duties (including fiduciary duties) and
liabilities relating thereto to the Trust or the Holders of the REMIC I Regular Interests or the Certificates, it is hereby
understood and agreed by the parties hereto that such duties and liabilities are replaced by the duties and liabilities of the
Delaware Trustee expressly set forth in this Agreement.

Section
8.14.         Amendment to Certificate of Trust. If at any time required by Section 3810 of the Statutory
Trust Statute, the Trustee, the Delaware Trustee and any other trustee of the Trust shall cause an amendment to the Certificate of
Trust to be filed with the Secretary of State in accordance with the provisions of such Section 3810.

Section
8.15.         Limitation of Liability. It is expressly understood and agreed by the parties hereto that (a)
each of the representations, undertakings and agreements herein made on the part of the Trust is made and intended not as personal
representations, undertakings and agreements by the Trustee but is made and intended for the purpose of binding only the Trust and
(b) under no circumstances shall the Trustee be personally liable for the payment of any indebtedness or expenses of the Trust or
be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Trust under
this Agreement.

ARTICLE IX

Termination

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

(a)           Except
as otherwise set forth in this Article IX, including, without limitation, the obligation of the Master Servicer to make payments to
Certificateholders as hereafter set forth, the Trust and the respective obligations and responsibilities of the Company, the Master
Servicer, the Trustee and the Delaware Trustee created hereby shall terminate in accordance with Section 3808 of the Statutory
Trust Statute upon (i) the purchase by the Master Servicer pursuant to the following paragraph of this Section 9.01(a) of all
Mortgage Loans (other than Liquidated Mortgage Loans), all property acquired in respect of any Mortgage Loan remaining in the Trust
and all other property included in any REMIC formed under this Agreement at a price equal, after the deduction of related advances,
to the sum of (x) the excess of (A) 100% of the aggregate outstanding Principal Balance of such Mortgage Loans (other than
Liquidated Mortgage Loans) plus accrued interest at the applicable Pass-Through Rate with respect to such Mortgage Loan (other than
a Liquidated Mortgage Loan) through the last day of the month of such purchase, over (B) with respect to any Mortgage Loan which is
not a Liquidated Mortgage Loan, the amount of the Bankruptcy Loss incurred with respect to such Mortgage Loan as of the date of
such purchase by the Master Servicer to the extent that the Principal Balance of such Mortgage Loan has not been previously reduced
by such Bankruptcy Loss, and (y) without duplication, the appraised fair market value as of the effective date of the termination
of the Trust of (A) all property in the Trust which secured a Mortgage Loan and which was acquired by foreclosure or deed in lieu
of foreclosure after the Cut-Off Date, including related Insurance  

 

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Proceeds, and (B) all other property included in any REMIC
formed under this Agreement, any such appraisal to be conducted by an appraiser mutually agreed upon by the Master Servicer and the
Trustee, or (ii) the later of the final payment or other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust or the disposition of all property acquired upon foreclosure in respect of any Mortgage Loan, and the
payment to the Certificateholders of all amounts required to be paid to them hereunder; provided, however, that in no event shall
the Trust continue beyond the expiration of 21 years from the death of the survivor of the issue of Joseph P. Kennedy, the late
ambassador of the United States to the Court of St. James’s, living on the date hereof.

On any Distribution Date after the first date on which the aggregate
Principal Balance of the Mortgage Loans is less than the Clean-Up Call Percentage of the aggregate Principal Balance of the
Mortgage Loans as of the Cut-Off Date, the Master Servicer may purchase the outstanding Mortgage Loans (other than Liquidated
Mortgage Loans), all property acquired in respect of any Mortgage Loan remaining in the Trust and all other property included in
any REMIC formed under this Agreement at the price stated in clause (i) of the preceding paragraph; provided,
that the Master Servicer may not so purchase the outstanding Mortgage Loans (other than Liquidated Mortgage Loans), all property
acquired in respect of any Mortgage Loan remaining in the Trust and all other property included in any REMIC formed under
this Agreement if the price stated in clause (i) of the preceding paragraph exceeds the fair market value, determined in accordance
with prudent industry practices, of all outstanding Mortgage Loans (other than Liquidated Mortgage Loans), all property acquired in
respect of any Mortgage Loan remaining in the Trust and all other property included in any REMIC formed under this Agreement. If such right is exercised, the Master Servicer shall provide to the Trustee (and to the Company, if the
Company is no longer acting as Master Servicer) the written certification of an officer of the Master Servicer (which certification
shall include a statement to the effect that all amounts required to be paid in order to purchase the Mortgage Loans have been
deposited in the Certificate Account) and the Trustee on behalf of the Trust shall promptly execute all instruments as may be
necessary to release and assign to the Master Servicer the Mortgage Loans (other than Liquidated Mortgage
Loans), all property acquired in respect of any Mortgage Loan remaining in the Trust and all other property included in any REMIC
formed under this Agreement.

In no event shall the Master Servicer be required to expend any
amounts other than those described in the first paragraph of this Section 9.01(a) in order to terminate the Trust or purchase the
Mortgage Loans under this Section 9.01, and in no event shall the Company be required to expend any amounts in connection with such
termination or purchase.

(b)           Notice
of any termination, specifying the date upon which the Certificateholders may surrender their Certificates to the Trustee for
payment and cancellation, shall be given promptly by letter from the Trustee to Certificateholders mailed not less than 30 days
prior to such final distribution, specifying (i) the date upon which final payment of the Certificates will be made upon
presentation and surrender of Certificates at the office of the Certificate Registrar therein designated (the “Termination
Date”), (ii) the amount of such final payment (the “Termination Payment”) and (iii) that the Record
Date otherwise applicable to the Distribution Date upon which the Termination Date occurs is not applicable, payments being made
only upon presentation and surrender of the Certificates at the  

 

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office of the Certificate Registrar therein specified. Upon any
such notice, the Certificate Account shall terminate subject to the Master Servicer’s obligation to hold all amounts payable
to Certificateholders in trust without interest pending such payment.

In the event that all of the Certificateholders shall not surrender
their Certificates for cancellation within six months after the Termination Date, the Master Servicer shall give a second written
notice to the remaining Certificateholders to surrender their Certificates for cancellation and receive the Termination Payment
with respect thereto. If within one year after the second notice all the Certificates shall not have been surrendered for
cancellation, the Master Servicer may take appropriate steps to contact the remaining Certificateholders concerning surrender of
their Certificates, and the cost thereof shall be paid out of the funds and other assets which remain in trust
hereunder.

Upon the completion of winding up of the Trust, including the payment
or the making reasonable provision for payment of all obligations of the Trust in accordance with Section 3808(e) of the Statutory
Trust Statute, the Delaware Trustee shall prepare, the Trustee, the Delaware Trustee and any other trustee hereunder shall sign,
and the Delaware Trustee (upon the Trustee’s consent acting at the direction of the Master Servicer) shall file, a
certificate of cancellation with the Secretary of State in accordance with Section 3810 of the Statutory Trust Statute, at which
time the Trust and this Agreement shall terminate.  The Master Servicer shall act as the liquidator of the Trust and shall be
responsible for taking all actions in connection with winding up the Trust, in accordance with the requirements of this Agreement
(including this Section 9.01 and Section 9.02) and applicable law.

Section 9.02.         Additional Termination Requirements.

(a)           In the
event the Master Servicer exercises its purchase option as provided in Section 9.01, REMIC I and REMIC II shall be terminated in
accordance with the following additional requirements, unless the Master Servicer, at its own expense, obtains for the Trustee an
Opinion of Counsel to the effect that the failure of REMIC I and REMIC II to comply with the requirements of this Section 9.02 will
not (i) result in the imposition of taxes on “prohibited transactions” of REMIC I and REMIC II as described in Section
860F of the Code, or (ii) cause REMIC I or REMIC II to fail to qualify as a REMIC at any time that any Certificates are
outstanding:

(i)                  Within 90 days prior to the final Distribution Date set forth in the notice given by the Trustee under Section 9.01, the
Tax Matters Person shall prepare the documentation required and the Tax Matters Person and the Trustee shall adopt a plan of
complete liquidation on behalf of REMIC I and REMIC II meeting the requirements of a qualified liquidation under Section 860F of
the Code and any regulations thereunder, as evidenced by an Opinion of Counsel obtained at the expense of the Master Servicer, on
behalf of REMIC I and REMIC II; and

 

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(ii)                At or after the time of adoption of such a plan of complete liquidation and at or prior to the final Distribution Date,
the Master Servicer as agent of the Trust shall sell all of the assets of REMIC I and REMIC II to the Master Servicer for cash in
the amount specified in Section 9.01.

(b)           By its
acceptance of any Residual Certificate, the Holder thereof hereby agrees to authorize the Tax Matters Person and the Trustee to
adopt such a plan of complete liquidation upon the written request of the Tax Matters Person and the Trustee and to take such other
action in connection therewith as may be reasonably requested by the Tax Matters Person or the Trustee.

Section
9.03.         Trust Irrevocable. Except as expressly provided herein, the trust created hereby is
irrevocable.

ARTICLE X

Miscellaneous Provisions

Section 10.01.     Amendment.

(a)           This
Agreement may be amended from time to time by the Master Servicer, the Company and the Trustee, without the consent of any of the
Certificateholders:

(i)                  to cure any ambiguity;

(ii)                to correct or supplement any provision herein which may be defective or inconsistent with any other provisions
herein;

(iii)               to comply with any requirements imposed by the Code or any regulations thereunder;

(iv)              to
correct the description of any property at any time included in REMIC I or REMIC II, or to assure the conveyance to the Trust
of any property included in REMIC I or REMIC II;

(v)                pursuant to Section 5.01(c)(v); and

(vi)              to
add any provision to, or amend any provision in, this Agreement, provided that such amendment or addition does not adversely affect
in any material respect the interests of any Certificateholder;

provided, however, that any
such amendment which modifies the rights or obligations of the Delaware Trustee hereunder shall require the consent of the Delaware
Trustee. No such amendment (other than one entered into pursuant to clause (iii) of the preceding sentence) shall change the powers
of the Master Servicer. Prior to entering into any amendment (other than one entered into pursuant to clause (iii) of the second
preceding sentence) without the consent of Certificateholders 

 

120

 

 

pursuant to this paragraph, the Trustee shall require an Opinion of
Counsel addressed to the Trust and the Trustee to the effect that such amendment is permitted under this Agreement and has no
material adverse effect on the interests of the Certificateholders; provided, however, that no such Opinion of Counsel shall be
required if the Company obtains a letter from each Rating Agency stating that the amendment would not result in the downgrading or
withdrawal of the respective ratings then assigned to the Certificates. Prior to entering into any amendment pursuant to clause
(iii) of the third preceding sentence without the consent of Certificateholders pursuant to this paragraph, the Trustee shall
require an Opinion of Counsel to the effect that such action is necessary or helpful to comply with the requirements imposed by the
Code or any regulations thereunder and shall not cause any REMIC formed under this Agreement to fail to qualify as such under the
Code.

(b)           This
Agreement may also be amended from time to time by the Master Servicer, the Company and the Trustee with the consent of the Holders
of Certificates evidencing Percentage Interests aggregating not less than 66% of REMIC II for the purpose of adding any provisions
to, or changing in any manner or eliminating any of the provisions of, this Agreement or of modifying in any manner the rights of
the Certificateholders; provided, however, that no such amendment shall, without the consent of the Holder of each Certificate
affected thereby (i) reduce in any manner the amount of, or delay the timing of, distributions of principal or interest required to
be made hereunder or reduce the Certificateholder’s Percentage Interest, the Certificate Interest Rate or the Termination
Payment with respect to any of the Certificates, (ii) reduce the percentage of Percentage Interests specified in this Section 10.01
which are required to amend this Agreement, (iii) create or permit the creation of any lien against any part of REMIC I or REMIC
II, or (iv) modify any provision in any way which would permit an earlier retirement of the Certificates; provided, further,
that any such amendment which modifies the rights or obligations of the Delaware Trustee hereunder shall require the consent of the
Delaware Trustee.

Promptly after the execution of any such amendment, the Trustee shall
furnish written notification of the substance of such amendment to the Delaware Trustee and each Certificateholder. Any failure to
provide such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such
amendment.

It shall not be necessary for the consent of Certificateholders under
this Section 10.01 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent shall
approve the substance thereof. The manner of obtaining such consents and of evidencing the authorization of the execution thereof
by Certificateholders shall be subject to such reasonable regulations as the Trustee may prescribe.

Section
10.02.     Recordation of
Agreement. To the extent permitted by applicable law, this Agreement is subject to recordation in all
appropriate public offices for real property records in all the counties or the comparable jurisdictions in which any Mortgaged
Property is situated, and in any other appropriate public recording office or elsewhere, such recordation to be effected by the
Company and at its expense on direction by the Trustee, but only upon direction accompanied by an Opinion of Counsel to the effect
that such recordation materially and beneficially affects the interests of the Certificateholders.

 

121

 

 

Section
10.03.     Limitation on Rights of
Certificateholders. The death or incapacity of any Certificateholder shall not operate to terminate
this Agreement or the Trust, nor entitle such Certificateholder’s legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding-up of the Trust, nor otherwise affect the rights, obligations
and liabilities of the parties hereto or any of them.

No Certificateholder shall have any right to vote or in any manner
otherwise to control the operation and management of the Trust or the obligations of the parties hereto (except as provided in
Section 5.09, Section 7.01, Section 8.01, Section 8.02, Section 8.07, Section 10.01 and this Section 10.03), nor shall anything
herein set forth, or contained in the terms of the Certificates, be construed so as to constitute the Certificateholders from time
to time as partners or members of an association; nor shall any Certificateholder be under any liability to any third person by
reason of any action taken by the parties to this Agreement pursuant to any provision hereof.

No Certificateholder shall have any right by virtue or by availing of
any provision of this Agreement to institute any suit, action or proceeding in equity or at law upon or under or with respect to
this Agreement, unless such Holder previously shall have given to the Trustee a written notice of default and of the continuance
thereof, as hereinbefore provided, and unless also the Holders of Certificates evidencing Percentage Interests aggregating not less
than 25% of REMIC II shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name
as Trustee hereunder and shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee, for 60 days after its receipt of such notice, request and offer
of indemnity, shall have neglected or refused to institute any such action, suit or proceeding. However, the Trustee is under no
obligation to exercise any of the extraordinary trusts or powers vested in it by this Agreement or to make any investigation of
matters arising hereunder or to institute, conduct or defend any litigation hereunder or in relation hereto at the request, order
or direction of any of the Certificateholders unless such Certificateholders have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities which may be incurred therein or thereby. It is understood and intended, and
expressly covenanted by each Certificateholder with every other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue or by availing of any provision of this Agreement to affect,
disturb or prejudice the rights of the Holders of any other of such Certificates, or to obtain or seek to obtain priority over or
preference to any other such Holder, or to enforce any right under this Agreement, except in the manner herein provided and for the
equal, ratable and common benefit of all Certificateholders. For the protection and enforcement of the provisions of this Section
10.03, each and every Certificateholder and the Trustee shall be entitled to such relief as can be given either at law or in
equity.

Section
10.04.     Access to List of
Certificateholders. The Certificate Registrar shall furnish or cause to be furnished to the Trustee,
within 30 days after receipt of a request by the Trustee in writing, a list, in such form as the Trustee may reasonably require, of
the names and addresses of the Certificateholders as of the most recent Record Date for payment of distributions to such
Certificateholders.

 

122

 

 

If three or more Certificateholders (hereinafter referred to as
“applicants”) apply in writing to the Trustee, and such application states that the applicants desire to
communicate with other Certificateholders with respect to their rights under this Agreement or under the Certificates and is
accompanied by a copy of the communication which such applicants propose to transmit, then the Trustee shall, within five Business
Days after the receipt of such list from the Certificate Registrar, afford such applicants access during normal business hours to
the most recent list of Certificateholders held by the Trustee. If such a list is as of a date more than 90 days prior to the date
of receipt of such applicants’ request, the Trustee shall promptly request from the Certificate Registrar a current list as
provided above, and shall afford such applicants access to such list promptly upon receipt.

Every Certificateholder, by receiving and holding the same, agrees
with the Master Servicer, the Trust, the Trustee and the Delaware Trustee that none of the Master Servicer, the Trust, the Trustee
or the Delaware Trustee shall be held accountable by reason of the disclosure of any such information as to the names and addresses
of the Certificateholders hereunder, regardless of the source from which such information was derived.

Section
10.05.     Governing
Law. This Agreement shall be construed in accordance with the laws of the State of Delaware without
giving effect to its conflict of laws provisions and the obligations, rights and remedies of the parties hereunder shall be
determined in accordance with such laws without giving effect to conflict of laws provisions.

Section
10.06.     Notices. All demands, notices and communications hereunder shall be in writing and shall be
deemed to have been duly given if personally delivered at or mailed by registered or certified mail to the applicable Notice
Address. Notices to the Rating Agencies shall also be deemed to have been duly given if mailed by first class mail, postage
prepaid, to the above listed addresses of the Rating Agencies. Any notice required or permitted to be mailed to a Certificateholder
shall be given by first class mail, postage prepaid, at the address of such Holder as shown in the Certificate Register. Any notice
so mailed within the time prescribed in this Agreement shall be conclusively presumed to have been duly given, whether or not the
Certificateholder receives such notice.

Section
10.07.     Severability of
Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement
shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable
from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Certificates or the rights of the Holders thereof.

Section
10.08.     Counterpart
Signatures. For the purpose of facilitating the recordation of this Agreement as herein provided and
for other purposes, this Agreement may be executed simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute but one and the same instrument.

Section
10.09.     Benefits of
Agreement. Nothing in this Agreement or in any Certificate, expressed or implied, shall give to any
Person, other than the parties hereto and their respective successors hereunder, any separate trustee or co-trustee appointed under
Section 8.10 and the Certificateholders, any benefit or any legal or equitable right, remedy or claim under this
Agreement.

 

123

 

 

Section 10.10.     Notices and Copies to Rating Agencies.

(a)           The
Trustee shall notify the Rating Agencies of the occurrence of any of the following events, in the manner provided in Section
10.06:

(i)                  the occurrence of an Event of Default pursuant to Section 7.01, subject to the provisions of Section 8.01(d);
and

(ii)                the appointment of a successor Master Servicer pursuant to Section 7.02;

(b)           The
Master Servicer shall notify the Rating Agencies of the occurrence of any of the following events, or in the case of clauses (iii),
(iv), (vii) and (viii) promptly upon receiving notice thereof, in the manner provided in Section 10.06:

(i)                  any amendment of this Agreement pursuant to Section 10.01;

(ii)                the appointment of a successor Trustee or successor Delaware Trustee pursuant to Section 8.08;

(iii)               the filing of any claim under or the cancellation or modification of any fidelity bond and errors and omissions coverage
pursuant to Section 3.01 and Section 3.06 with respect to the Master Servicer or any Servicer;

(iv)              any
change in the location of the Certificate Account, any Custodial Account for P&I or any Custodial Account for
Reserves;

(v)                the purchase of any Mortgage Loan pursuant to a Purchase Obligation or as permitted by this Agreement or the purchase of
the outstanding Mortgage Loans pursuant to Section 9.01;

(vi)              the
occurrence of the final Distribution Date or the termination of the trust pursuant to Section 9.01(a)(ii);

(vii)             the failure
of the Master Servicer to make a Monthly P&I Advance following a determination on the Determination Date that the Master
Servicer would make such advance pursuant to Section 4.02; and

(viii)           the failure of the
Master Servicer to make a determination on the Determination Date regarding whether it would make a Monthly P&I Advance when a
shortfall exists between (x) payments scheduled to be received in respect of the Mortgage Loans and (y) the amounts actually
deposited in the Certificate Account on account of such payments, pursuant to Section 4.02.

 

124

 

 

 

The Master Servicer shall provide copies of
the statements pursuant to Section 4.02, Section 4.05, Section 3.12, Section 3.13 or Section 3.15 or any other statements or
reports to the Rating Agencies in such time and manner that such statements or determinations are required to be provided to
Certificateholders. With respect to the reports described in the second paragraph of Section 4.05, the Master Servicer shall
provide such reports to the Rating Agencies in respect of each Distribution Date, without regard to whether any Certificateholder
or the Trustee or the Delaware Trustee has requested such report for such Distribution Date.

 
125

 

 

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

 

  	 	

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

      
	 	 
	 	

By: /s/ Barbara Loper

      
	 	

      
Name: Barbara Loper

        Title:  Vice President

      
	 	 
	 	                                               
	 	

CITIBANK, N.A.,

      
	 	as Trustee
	 	 
	 	

By: /s/ John Hannon

      
	 	

      Name: John Hannon

       Title: Assoc.

      
	 	 
	 	                                               
	 	

CHRISTIANA BANK & TRUST COMPANY,

      
	 	as Delaware Trustee
	 	 
	 	

By: /s/ James M. Young

      
	 	

       Name: James M. Young

        Title: Assistant Vice President

      
	 	

 

      

 

 

[Signature page to Pooling
and Servicing Agreement for WaMu Series 2004-CB3]

 

ACKNOWLEDGEMENT OF CORPORATION

  	
      STATE OF WASHINGTON
	

)

      
	
       
	

)  SS.

      
	
      COUNTY OF KING
	

)

      

I certify that I know or have
satisfactory evidence that Barbara Loper  is the person who appeared
before me, and said person acknowledged that she signed this instrument, on oath
stated that she was authorized to execute the instrument and acknowledged it as
the  Vice President of WASHINGTON MUTUAL MORTGAGE SECURITIES CORP., to
be the free and voluntary act of such party for the uses and purposes mentioned therein.

Dated this 23rd day of August, 2004.

/s/ Cecelia A. Kelly

Notary Public in and for the State of Washington,

residing at Port Orchard

My commission expires:  11-9-2006

 

 

ACKNOWLEDGEMENT

  	
      STATE OF NEW YORK
	

)

      
	
       
	

)  SS.

      
	
      COUNTY OF NEW YORK
	

)

      

On this 24th day of August 2004 before me, a Notary Public in and for said State,
personally appeared John Hannon, personally known to me (or proved to me on the basis of satisfactory evidence) to be
the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacit(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

Signature /s/ Jeffry Berger

Notary Public, State of New York

No. 01BE5015814

Qualified in Kings County

My Commission Expires July 26, 2005

 

(SEAL)

 

 

 

ACKNOWLEDGEMENT

 

  	
      STATE OF DELAWARE
	

)

      
	
       
	

)  SS.

      
	
      COUNTY OF NEWCASTLE
	

)

      

On this 18th day of August 2004 before me, a Notary Public in and for said State,
personally appeared James M. Young, personally known to me (or proved to me on the basis of satisfactory evidence) to be
the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacit(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

Signature /s/ Patricia A. Smith

Notary Public

State of Delaware

My Commission Expires May 29, 2005

 

(SEAL)

 

 

Appendix
1:  Definition of Class C-Y Principal Reduction Amounts

 

 

	 	       
Copies of Appendix 1 (which has been intentionally omitted from
this filing) may be obtained from Washington Mutual Mortgage Securities Corp. or
Citibank, N.A. by contacting:

 

	 	
      in the case of Washington Mutual Mortgage Securities Corp.,  

 

	 	       
Laura Kelsey 
        Master Servicing Department 
        Washington Mutual Mortgage Securities Corp.

        75 N. Fairway Drive,VHF2A01 
         Vernon Hills, IL 60061

        Telephone:  (847) 393-5198

        Facsimile:     (847) 549-2997 

 

	 	
      in the case of Citibank, N.A., 

 

	 	       
Karen Schluter
        Citibank, N.A.
        111 Wall Street

        14th Floor, Zone 3

         New York, NY  10005
        Telephone:  (212)
657-7781
        Facsimile:    (212) 657-4009

 

Exhibit A

CUSIP 92922F XL 7

WaMu MORTGAGE PASS-THROUGH
CERTIFICATE

Class I-A

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans formed and
administered by

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

This Certificate is issued
by WaMu Mortgage Pass-Through Certificates Series 2004-CB3
Trust.  This Certificate represents ownership of a "regular
interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the
Internal Revenue Code of 1986, as amended. The issue date of this
Certificate is August
24, 2004.

Unless this Certificate is
presented by an authorized representative of The Depository Trust
Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any
Certificate issued is registered in the name of Cede & Co. or
such other name as is requested by an authorized representative of
DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof,
Cede & Co., has an interest herein.

Series 2004-CB3                                                                                  
Portion of the Class I-A Principal Balance as of

                                                                                                               
the Cut-Off Date Evidenced by this Certificate:

                                                                                                               
$93,496,454.00

Class I-A Certificate Interest Rate:
6.000%

Cut-Off Date: August 1, 2004

First Distribution
Date: September 27,
2004

Last Scheduled Distribution
Date: October 25,
2034

Class I-A Principal Balance

as of the Cut-Off Date: $93,496,454.00

Cede & Co.

Registered Owner

 

 A-1

Exhibit A

CUSIP 92922F XM 5

WaMu MORTGAGE PASS-THROUGH
CERTIFICATE

Class II-A

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans formed and
administered by

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

This Certificate is issued
by WaMu Mortgage Pass-Through Certificates Series 2004-CB3
Trust.  This Certificate represents ownership of a "regular
interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the
Internal Revenue Code of 1986, as amended. The issue date of this
Certificate is August
24, 2004.

Unless this Certificate is
presented by an authorized representative of The Depository Trust
Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any
Certificate issued is registered in the name of Cede & Co. or
such other name as is requested by an authorized representative of
DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof,
Cede & Co., has an interest herein.

Series
2004-CB3                                                                                    
Portion of the Class II-A Principal Balance as of

                                                                                                               
the Cut-Off Date Evidenced by this Certificate:

                                                                                                               
$108,400,648.00

Class II-A Certificate Interest Rate:
6.500%

Cut-Off Date: August 1, 2004

First Distribution
Date: September 27,
2004

Last Scheduled Distribution
Date: October 25,
2034

Class II-A Principal Balance

as of the Cut-Off Date: $108,400,648.00

Cede & Co.

Registered Owner

A-2

Exhibit A

CUSIP 92922F XN 3

WaMu MORTGAGE PASS-THROUGH
CERTIFICATE

Class III-A

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans formed and
administered by

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

This Certificate is issued
by WaMu Mortgage Pass-Through Certificates Series 2004-CB3
Trust.  This Certificate represents ownership of a "regular
interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the
Internal Revenue Code of 1986, as amended. The issue date of this
Certificate is August
24, 2004.

Unless this Certificate is
presented by an authorized representative of The Depository Trust
Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any
Certificate issued is registered in the name of Cede & Co. or
such other name as is requested by an authorized representative of
DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof,
Cede & Co., has an interest herein.

Series
2004-CB3                                                                                    
Portion of the Class III-A Principal Balance as of

                                                                                                               
the Cut-Off Date Evidenced by this Certificate:

                                                                                                               
$43,355,133.00

Class III-A Certificate Interest Rate:
5.500%

Cut-Off Date: August 1, 2004

First Distribution
Date: September 27,
2004

Last Scheduled Distribution
Date: October 25,
2019

Class III-A Principal Balance

as of the Cut-Off Date: $43,355,133.00

Cede & Co.

Registered Owner

A-3

Exhibit A

CUSIP 92922F XP 8

WaMu MORTGAGE PASS-THROUGH
CERTIFICATE

Class IV-A

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans formed and
administered by

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

This Certificate is issued
by WaMu Mortgage Pass-Through Certificates Series 2004-CB3
Trust.  This Certificate represents ownership of a "regular
interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the
Internal Revenue Code of 1986, as amended. The issue date of this
Certificate is August
24, 2004.

Unless this Certificate is
presented by an authorized representative of The Depository Trust
Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any
Certificate issued is registered in the name of Cede & Co. or
such other name as is requested by an authorized representative of
DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof,
Cede & Co., has an interest herein.

Series
2004-CB3                                                                                    
Portion of the Class IV-A Principal Balance as of

                                                                                                               
the Cut-Off Date Evidenced by this Certificate:

                                                                                                               
$40,343,889.00

Class IV-A Certificate Interest Rate:
6.000%

Cut-Off Date: August 1, 2004

First Distribution
Date: September 27,
2004

Last Scheduled Distribution
Date: October 25,
2019

Class IV-A Principal Balance

as of the Cut-Off Date: $40,343,889.00

Cede & Co.

Registered Owner

 

A-4

 

Exhibit A

CUSIP 92922F XQ 6

WaMu MORTGAGE PASS-THROUGH
CERTIFICATE

Class C-X

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans formed and
administered by

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

This Certificate is issued
by WaMu Mortgage Pass-Through Certificates Series 2004-CB3
Trust.  This Certificate represents ownership of a "regular
interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the
Internal Revenue Code of 1986, as amended. The issue date of this
Certificate is August
24, 2004.

Unless this Certificate is
presented by an authorized representative of The Depository Trust
Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any
Certificate issued is registered in the name of Cede & Co. or
such other name as is requested by an authorized representative of
DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof,
Cede & Co., has an interest herein.

Series
2004-CB3                                                                                    
Portion of the Class C-X Notional Amount as of

                                                                                                               
the Cut-Off Date Evidenced by this Certificate:

                                                                                                               
$5,744,424.00

Class C-X Certificate Interest
Rate: 6.500%, applied to the

Class C-X Notional Amount

Cut-Off Date: August 1, 2004

First Distribution
Date: September 27,
2004

Last Scheduled Distribution
Date: October 25,
2034

Class C-X Principal Balance

as of the Cut-Off Date: $0.00

Class C-X Notional Amount

as of the Cut-Off Date: $5,744,424.00

Cede & Co.

Registered Owner

A-5

Exhibit A

CUSIP 92922F XR 4

WaMu MORTGAGE PASS-THROUGH
CERTIFICATE

Class I-P

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans formed and
administered by

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

This Certificate is issued
by WaMu Mortgage Pass-Through Certificates Series 2004-CB3
Trust.  This Certificate represents ownership of a "regular
interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the
Internal Revenue Code of 1986, as amended. The issue date of this
Certificate is August
24, 2004. 
Interest is not payable with respect to this
Certificate.

Unless this Certificate is
presented by an authorized representative of The Depository Trust
Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any
Certificate issued is registered in the name of Cede & Co. or
such other name as is requested by an authorized representative of
DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof,
Cede & Co., has an interest herein.

Series
2004-CB3                                                                                    
Portion of the Class I-P Principal Balance as of the

Cut-Off Date Evidenced by this Certificate:

$1,338,698.00

Class I-P Certificate
Interest Rate: 0.00%

Cut-Off Date: August 1, 2004

First Distribution
Date: September 27,
2004

Last Scheduled Distribution
Date: October 25,
2034

Class I-P Principal
Balance

as of the Cut-Off Date: $1,338,698.00

Cede & Co.

Registered Owner

A-6

Exhibit A

CUSIP 92922F XS 2

WaMu MORTGAGE PASS-THROUGH
CERTIFICATE

Class III-P

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans formed and
administered by

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

This Certificate is issued
by WaMu Mortgage Pass-Through Certificates Series 2004-CB3
Trust.  This Certificate represents ownership of a "regular
interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the
Internal Revenue Code of 1986, as amended. The issue date of this
Certificate is August
24, 2004. 
Interest is not payable with respect to this
Certificate.

Unless this Certificate is
presented by an authorized representative of The Depository Trust
Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any
Certificate issued is registered in the name of Cede & Co. or
such other name as is requested by an authorized representative of
DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof,
Cede & Co., has an interest herein.

Series
2004-CB3                                                                                    
Portion of the Class III-P Principal Balance as of the

Cut-Off Date Evidenced by this Certificate:

$689,884.00

Class III-P Certificate
Interest Rate: 0.00%

Cut-Off Date: August 1, 2004

First Distribution
Date: September 27,
2004

Last Scheduled Distribution
Date: October 25,
2019

Class III-P Principal
Balance

as of the Cut-Off Date: $689,884.00

Cede & Co.

Registered Owner

A-7

Exhibit A

CUSIP 92922F XT 0

WaMu MORTGAGE PASS-THROUGH
CERTIFICATE

Class B-1

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans formed and
administered by

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

This Certificate is issued
by WaMu Mortgage Pass-Through Certificates Series 2004-CB3
Trust.  This Certificate represents ownership of a "regular
interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the
Internal Revenue Code of 1986, as amended. The issue date of this
Certificate is August
24, 2004.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation ("DTC"), to the Company or its agent for
registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other
name as is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

NO
TRANSFER OF THIS CLASS B-1 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER’S CERTIFICATE IN THE FORM
DESCRIBED IN SECTION 5.01(g) OF THE POOLING AGREEMENT AND (II) IF
SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF
COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE
TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING
OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE MASTER
SERVICER OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE MASTER SERVICER OR
THE COMPANY.

NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH
RESPECT TO THE TRANSFER OF THIS CLASS B-1 CERTIFICATE TO DTC OR ANY
OTHER CLEARING AGENCY OR ANY SUBSEQUENT TRANSFER OF ANY INTEREST IN
THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS HELD BY DTC OR
ANY OTHER CLEARING AGENCY, (I) AN OFFICER’S CERTIFICATE (AND,
IF APPLICABLE, A BENEFIT PLAN OPINION), AS DESCRIBED IN THE
FOREGOING PARAGRAPH, SHALL NOT BE REQUIRED, AND (II) THE FOLLOWING
CONDITIONS SHALL APPLY:

1.            
ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE
IS NOT AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE, OR ANY
PERSON (INCLUDING AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A
TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF
OF OR PURCHASING THIS CERTIFICATE WITH "PLAN ASSETS" OF ANY SUCH
PLAN (A "PLAN INVESTOR"), (B) SUCH TRANSFEREE IS AN INSURANCE
COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO ACQUIRE OR HOLD
THIS CERTIFICATE IS AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN
THE MEANING OF DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS
EXEMPTION ("PTCE") 95-60), AND THE CONDITIONS IN SECTIONS I AND III
OF PTCE 95-60 HAVE BEEN SATISFIED (EACH ENTITY THAT SATISFIES THIS
CLAUSE (B), A "COMPLYING INSURANCE COMPANY") OR (C) THIS
CERTIFICATE WAS RATED "BBB-" OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE’S ACQUISITION OF THIS CERTIFICATE (OR INTEREST
HEREIN); AND

2.            
IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN VIOLATION OF
THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE LAST PRECEDING TRANSFEREE
THAT EITHER (I) IS NOT A PLAN INVESTOR, (II) IS A COMPLYING INSURANCE COMPANY OR
(III) ACQUIRED THIS CERTIFICATE AT A TIME WHEN THIS CERTIFICATE WAS RATED "BBB-"
OR BETTER (OR ITS EQUIVALENT) BY AT LEAST ONE OF THE RATING AGENCIES SHALL BE
RESTORED, TO THE EXTENT PERMITTED BY LAW, TO ALL RIGHTS AND OBLIGATIONS AS
BENEFICIAL HOLDER 

A-8

THEREOF RETROACTIVE TO THE DATE OF TRANSFER OF THIS
CERTIFICATE BY SUCH PRECEDING TRANSFEREE.  NEITHER THE TRUST NOR THE
TRUSTEE SHALL BE UNDER ANY LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE
ON THIS CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION
OR HOLDING OF THIS CERTIFICATE (OR INTEREST HEREIN) WAS EFFECTED IN
VIOLATION OF THE RESTRICTIONS IN SECTION 5.01(g) OF THE POOLING
AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE COMPANY, THE
TRUSTEE, THE DELAWARE TRUSTEE, THE MASTER SERVICER, THE TRUST AND
THE UNDERWRITER FROM AND AGAINST ANY AND ALL LIABILITIES, CLAIMS,
COSTS OR EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH
ACQUISITION OR HOLDING.

The Class B-1 Certificates will be subordinate in
right of payment to and provide credit support to certain Classes
of Certificates, as described in the Pooling Agreement.

Series
2004-CB3                                                                                    
Portion of the Class B-1 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

$8,130,000.00

Class B-1 Certificate
Interest Rate: Variable

Cut-Off Date: August 1, 2004

First Distribution Date: September 27, 2004

Last Scheduled Distribution Date: October 25, 2034

Class B-1 Principal Balance

as of the Cut-Off Date: $8,130,000.00

 

Cede & Co.

Registered Owner

 

A-9

Exhibit A

CUSIP 92922F XU 7

WaMu MORTGAGE PASS-THROUGH
CERTIFICATE

Class B-2

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans formed and
administered by

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

This Certificate is issued
by WaMu Mortgage Pass-Through Certificates Series 2004-CB3
Trust.  This Certificate represents ownership of a "regular
interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the
Internal Revenue Code of 1986, as amended. The issue date of this
Certificate is August
24, 2004.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation ("DTC"), to the Company or its agent for
registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other
name as is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

NO
TRANSFER OF THIS CLASS B-2 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER’S CERTIFICATE IN THE FORM
DESCRIBED IN SECTION 5.01(g) OF THE POOLING AGREEMENT AND (II) IF
SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF
COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE
TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING
OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE , THE MASTER
SERVICER OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE MASTER SERVICER OR
THE COMPANY.

NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH
RESPECT TO THE TRANSFER OF THIS CLASS B-2 CERTIFICATE TO DTC OR ANY
OTHER CLEARING AGENCY OR ANY SUBSEQUENT TRANSFER OF ANY INTEREST IN
THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS HELD BY DTC OR
ANY OTHER CLEARING AGENCY, (I) AN OFFICER’S CERTIFICATE (AND,
IF APPLICABLE, A BENEFIT PLAN OPINION), AS DESCRIBED IN THE
FOREGOING PARAGRAPH, SHALL NOT BE REQUIRED, AND (II) THE FOLLOWING
CONDITIONS SHALL APPLY:

1.            
ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE
IS NOT AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE, OR ANY
PERSON (INCLUDING AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A
TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF
OF OR PURCHASING THIS CERTIFICATE WITH "PLAN ASSETS" OF ANY SUCH
PLAN (A "PLAN INVESTOR"), (B) SUCH TRANSFEREE IS AN INSURANCE
COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO ACQUIRE OR HOLD
THIS CERTIFICATE IS AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN
THE MEANING OF DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS
EXEMPTION ("PTCE") 95-60), AND THE CONDITIONS IN SECTIONS I AND III
OF PTCE 95-60 HAVE BEEN SATISFIED (EACH ENTITY THAT SATISFIES THIS
CLAUSE (B), A "COMPLYING INSURANCE COMPANY") OR (C) THIS
CERTIFICATE WAS RATED "BBB-" OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE’S ACQUISITION OF THIS CERTIFICATE (OR INTEREST
HEREIN); AND

2.            
IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN VIOLATION OF
THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE LAST PRECEDING TRANSFEREE
THAT EITHER (I) IS NOT A PLAN INVESTOR, (II) IS A COMPLYING INSURANCE COMPANY OR
(III) ACQUIRED THIS CERTIFICATE AT A TIME WHEN THIS CERTIFICATE WAS RATED "BBB-"
OR BETTER (OR ITS EQUIVALENT) BY AT LEAST ONE OF 

A-10

THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED
BY LAW, TO ALL RIGHTS AND OBLIGATIONS AS BENEFICIAL HOLDER THEREOF RETROACTIVE
TO THE DATE OF TRANSFER OF THIS CERTIFICATE BY SUCH PRECEDING TRANSFEREE. 
NEITHER THE TRUST NOR THE TRUSTEE SHALL BE UNDER ANY LIABILITY TO ANY PERSON FOR
MAKING ANY PAYMENTS DUE ON THIS CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION
OR HOLDING OF THIS CERTIFICATE (OR INTEREST HEREIN) WAS EFFECTED IN
VIOLATION OF THE RESTRICTIONS IN SECTION 5.01(g) OF THE POOLING
AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE COMPANY, THE
TRUSTEE, THE DELAWARE TRUSTEE, THE MASTER SERVICER, THE TRUST AND
THE UNDERWRITER FROM AND AGAINST ANY AND ALL LIABILITIES, CLAIMS,
COSTS OR EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH
ACQUISITION OR HOLDING.

The Class B-2 Certificates will be subordinate in
right of payment to and provide credit support to certain Classes
of Certificates, as described in the Pooling Agreement.

Series
2004-CB3                                                                                    
Portion of the Class B-2 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

$3,681,000.00

Class B-2 Certificate
Interest Rate: Variable

Cut-Off Date: August 1, 2004

First Distribution Date: September 27, 2004

Last Scheduled Distribution Date: October 25, 2034

Class B-2 Principal Balance

as of the Cut-Off Date: $3,681,000.00

 

Cede & Co.

Registered Owner

 

A-11

 

Exhibit A

CUSIP 92922F XV 5

WaMu MORTGAGE PASS-THROUGH
CERTIFICATE

Class B-3

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans formed and
administered by

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

This Certificate is issued
by WaMu Mortgage Pass-Through Certificates Series 2004-CB3
Trust.  This Certificate represents ownership of a "regular
interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the
Internal Revenue Code of 1986, as amended. The issue date of this
Certificate is August
24, 2004.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation ("DTC"), to the Company or its agent for
registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other
name as is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

NO
TRANSFER OF THIS CLASS B-3 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER’S CERTIFICATE IN THE FORM
DESCRIBED IN SECTION 5.01(g) OF THE POOLING AGREEMENT AND (II) IF
SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF
COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE
TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING
OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE MASTER
SERVICER OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE MASTER SERVICER OR
THE COMPANY.

NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH
RESPECT TO THE TRANSFER OF THIS CLASS B-3 CERTIFICATE TO DTC OR ANY
OTHER CLEARING AGENCY OR ANY SUBSEQUENT TRANSFER OF ANY INTEREST IN
THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS HELD BY DTC OR
ANY OTHER CLEARING AGENCY, (I) AN OFFICER’S CERTIFICATE (AND,
IF APPLICABLE, A BENEFIT PLAN OPINION), AS DESCRIBED IN THE
FOREGOING PARAGRAPH, SHALL NOT BE REQUIRED, AND (II) THE FOLLOWING
CONDITIONS SHALL APPLY:

1.            
ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE
IS NOT AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE, OR ANY
PERSON (INCLUDING AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A
TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF
OF OR PURCHASING THIS CERTIFICATE WITH "PLAN ASSETS" OF ANY SUCH
PLAN (A "PLAN INVESTOR"), (B) SUCH TRANSFEREE IS AN INSURANCE
COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO ACQUIRE OR HOLD
THIS CERTIFICATE IS AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN
THE MEANING OF DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS
EXEMPTION ("PTCE") 95-60), AND THE CONDITIONS IN SECTIONS I AND III
OF PTCE 95-60 HAVE BEEN SATISFIED (EACH ENTITY THAT SATISFIES THIS
CLAUSE (B), A "COMPLYING INSURANCE COMPANY") OR (C) THIS
CERTIFICATE WAS RATED "BBB-" OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE’S ACQUISITION OF THIS CERTIFICATE (OR INTEREST
HEREIN); AND

2.            
IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN VIOLATION OF
THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE LAST PRECEDING TRANSFEREE
THAT EITHER (I) IS NOT A PLAN INVESTOR, (II) IS A COMPLYING INSURANCE COMPANY OR
(III) ACQUIRED THIS CERTIFICATE AT A TIME WHEN THIS CERTIFICATE WAS RATED "BBB-"
OR BETTER (OR ITS EQUIVALENT) BY AT LEAST ONE OF 

A-12

THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED
BY LAW, TO ALL RIGHTS AND OBLIGATIONS AS BENEFICIAL HOLDER THEREOF RETROACTIVE
TO THE DATE OF TRANSFER OF THIS CERTIFICATE BY SUCH PRECEDING TRANSFEREE. 
NEITHER THE TRUST NOR THE TRUSTEE SHALL BE UNDER ANY LIABILITY TO ANY PERSON FOR
MAKING ANY PAYMENTS DUE ON THIS CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION
OR HOLDING OF THIS CERTIFICATE (OR INTEREST HEREIN) WAS EFFECTED IN
VIOLATION OF THE RESTRICTIONS IN SECTION 5.01(g) OF THE POOLING
AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE COMPANY, THE
TRUSTEE, THE DELAWARE TRUSTEE, THE MASTER SERVICER, THE TRUST AND
THE UNDERWRITER FROM AND AGAINST ANY AND ALL LIABILITIES, CLAIMS,
COSTS OR EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH
ACQUISITION OR HOLDING.

The Class B-3 Certificates will be subordinate in
right of payment to and provide credit support to certain Classes
of Certificates, as described in the Pooling Agreement.

Series
2004-CB3                                                                                    
Portion of the Class B-3 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

$2,147,000.00

Class B-3 Certificate
Interest Rate: Variable

Cut-Off Date: August 1, 2004

First Distribution Date: September 27, 2004

Last Scheduled Distribution Date: October 25, 2034

Class B-3 Principal Balance

as of the Cut-Off Date: $2,147,000.00

 

Cede & Co.

Registered Owner

A-13

 

 

 Exhibit A

CUSIP 92922F XX 1

WaMu MORTGAGE PASS-THROUGH
CERTIFICATE

Class B-4

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans formed and
administered by

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

This Certificate is issued
by WaMu Mortgage Pass-Through Certificates Series 2004-CB3
Trust.  This Certificate represents ownership of a "regular
interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the
Internal Revenue Code of 1986, as amended. The issue date of this
Certificate is August 24, 2004.

NO TRANSFER OF THIS CLASS B-4 CERTIFICATE WILL BE
MADE UNLESS THE TRUSTEE HAS RECEIVED (I) AN OFFICER’S
CERTIFICATE IN THE FORM DESCRIBED IN SECTION 5.01(d) OF THE POOLING
AGREEMENT AND (II) IF SO INDICATED IN SUCH OFFICER’S
CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND
SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE COMPANY TO THE EFFECT
THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE
UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT
PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975
OF THE CODE, AND WILL NOT SUBJECT THE TRUST, THE TRUSTEE, THE
DELAWARE TRUSTEE, THE MASTER SERVICER OR THE COMPANY TO ANY
OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO
THOSE UNDERTAKEN IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL
SHALL NOT BE AN EXPENSE OF THE TRUST, THE TRUSTEE, THE DELAWARE
TRUSTEE, THE MASTER SERVICER OR THE COMPANY.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THESE
SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE AVAILABILITY OF
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND
EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE POOLING
AGREEMENT.

The Class B-4 Certificates
will be subordinate in right of payment to and provide credit
support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series
2004-CB3                                                                                    
Portion of the Class B-4 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

$2,147,000.00

Class B-4 Certificate Interest Rate:
Variable

Cut-Off Date: August 1, 2004

First Distribution Date: September 27, 2004

Last Scheduled Distribution Date: October 25, 2034

Class B-4 Principal Balance

as of the Cut-Off Date: $2,147,000.00

________________

Registered Owner

 

A-14

 

Exhibit A

CUSIP 92922F XY 9

WaMu MORTGAGE PASS-THROUGH
CERTIFICATE

Class B-5

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans formed and
administered by

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

This Certificate is issued
by WaMu Mortgage Pass-Through Certificates Series 2004-CB3
Trust.  This Certificate represents ownership of a "regular
interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the
Internal Revenue Code of 1986, as amended. The issue date of this
Certificate is August 24, 2004.

NO TRANSFER OF THIS CLASS B-5 CERTIFICATE WILL BE
MADE UNLESS THE TRUSTEE HAS RECEIVED (I) AN OFFICER’S
CERTIFICATE IN THE FORM DESCRIBED IN SECTION 5.01(d) OF THE POOLING
AGREEMENT AND (II) IF SO INDICATED IN SUCH OFFICER’S
CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND
SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE COMPANY TO THE EFFECT
THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE
UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT
PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975
OF THE CODE, AND WILL NOT SUBJECT THE TRUST, THE TRUSTEE, THE
DELAWARE TRUSTEE, THE MASTER SERVICER OR THE COMPANY TO ANY
OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO
THOSE UNDERTAKEN IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL
SHALL NOT BE AN EXPENSE OF THE TRUST, THE TRUSTEE, THE DELAWARE
TRUSTEE, THE MASTER SERVICER OR THE COMPANY.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THESE
SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE AVAILABILITY OF
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND
EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE POOLING
AGREEMENT.

The Class B-5 Certificates
will be subordinate in right of payment to and provide credit
support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series
2004-CB3                                                                                    
Portion of the Class B-5 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

$1,840,000.00

Class B-5 Certificate Interest Rate:
Variable

Cut-Off Date: August 1, 2004

First Distribution Date: September 27, 2004

Last Scheduled Distribution Date: October 25, 2034

Class B-5 Principal Balance

as of the Cut-Off Date: $1,840,000.00

________________

Registered Owner

 

A-15

 

Exhibit A

CUSIP 92922F XZ 6

WaMu MORTGAGE PASS-THROUGH
CERTIFICATE

Class B-6

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans formed and
administered by

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

This Certificate is issued
by WaMu Mortgage Pass-Through Certificates Series 2004-CB3
Trust.  This Certificate represents ownership of a "regular
interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the
Internal Revenue Code of 1986, as amended. The issue date of this
Certificate is August 24, 2004.

NO TRANSFER OF THIS CLASS B-6 CERTIFICATE WILL BE
MADE UNLESS THE TRUSTEE HAS RECEIVED (I) AN OFFICER’S
CERTIFICATE IN THE FORM DESCRIBED IN SECTION 5.01(d) OF THE POOLING
AGREEMENT AND (II) IF SO INDICATED IN SUCH OFFICER’S
CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND
SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE COMPANY TO THE EFFECT
THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE
UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT
PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975
OF THE CODE, AND WILL NOT SUBJECT THE TRUST, THE TRUSTEE, THE
DELAWARE TRUSTEE, THE MASTER SERVICER OR THE COMPANY TO ANY
OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO
THOSE UNDERTAKEN IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL
SHALL NOT BE AN EXPENSE OF THE TRUST, THE TRUSTEE, THE DELAWARE
TRUSTEE, THE MASTER SERVICER OR THE COMPANY.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THESE
SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE AVAILABILITY OF
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND
EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE POOLING
AGREEMENT.

The Class B-6 Certificates
will be subordinate in right of payment to and provide credit
support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series
2004-CB3                                                                                    
Portion of the Class B-6 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

$1,229,988.36

Class B-6 Certificate Interest Rate:
Variable

Cut-Off Date: August 1, 2004

First Distribution Date: September 27, 2004

Last Scheduled Distribution Date: October 25, 2034

Class B-6 Principal Balance

as of the Cut-Off Date: $1,229,988.36

________________

Registered Owner

                                                                                                         

A-16

Exhibit B

CUSIP 92922F XW 3

WaMu MORTGAGE PASS-THROUGH CERTIFICATE

Class R

Evidencing a Percentage
Interest in certain distributions with respect to a pool of
conventional one- to four-family mortgage loans formed and
administered by

WASHINGTON MUTUAL MORTGAGE SECURITIES
CORP.

ANY RESALE, TRANSFER OR
OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE
PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE COMPANY
AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT EITHER (A) THE
UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY
FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY
OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY ORGANIZATION
(OTHER THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE)
WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION
511 OF THE CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION
1381(a)(2)(C) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE
FOREGOING CLAUSES (A), (B), OR (C) BEING HEREINAFTER REFERRED TO AS
A "DISQUALIFIED ORGANIZATION"), OR (D) AN AGENT OF A DISQUALIFIED
ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO ENABLE THE
TRANSFER TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX. SUCH
AFFIDAVIT SHALL INCLUDE CERTAIN REPRESENTATIONS AS TO THE FINANCIAL
CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE
REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR
OTHER DISPOSITION OF THIS CLASS R CERTIFICATE TO A DISQUALIFIED
ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH
REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT
WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT
LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH
HOLDER OF A CLASS R CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE
SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.

IN THE CASE OF ANY CLASS R
CERTIFICATE PRESENTED FOR REGISTRATION IN THE NAME OF ANY PERSON,
THE TRUSTEE SHALL REQUIRE (I) AN OFFICER’S CERTIFICATE IN THE
FORM DESCRIBED IN SECTION 5.01(d) OF THE POOLING AGREEMENT AND (II)
IF SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF
COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE
TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING
OF A CLASS R CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL
NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION
UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE CODE AND WILL
NOT SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE
MASTER SERVICER OR THE COMPANY TO ANY OBLIGATION OR LIABILITY
(INCLUDING OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR
SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE
POOLING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE
OF THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE MASTER
SERVICER OR THE COMPANY.

This Certificate is issued
by WaMu Mortgage Pass-Through Certificates Series 2004-CB3
Trust.  Solely for U.S. federal income tax purposes, this
Certificate represents "residual interests" in "real estate
mortgage investment conduits," as those terms are defined in
Sections 860G and 860D, respectively, of the Internal Revenue Code
of 1986, as amended.

Series
2004-CB3                                                                                    
Percentage Interest evidenced by this Class R Certificate in the
distributions to be made with respect to the Class R Certificates:
                                     
%

Class R Certificate Interest
Rate: 5.500%.  Additionally the Class R Certificates are
entitled to Excess Liquidation Proceeds and the Residual
Distribution Amount as defined in the Pooling Agreement.

Cut-Off Date: August 1, 2004

First Distribution Date: September 27, 2004

Last Scheduled Distribution Date: October 25, 2034

Class R Principal Balance as of the Cut-Off Date:
$100.00

__________________

Registered Owner

Certificate No. _________

B-1

This Certificate does not represent an obligation
of or interest in Washington Mutual Mortgage Securities Corp. or
any of its affiliates. Neither this Certificate nor the underlying
Mortgage Loans are guaranteed by any agency or instrumentality of
the United
States.

This certifies that the above-named Registered
Owner is the registered owner of certain interests in (i) a pool of
assets ("REMIC I") consisting of, among other things, conventional
one- to four-family mortgage loans (the "Mortgage Loans"), formed
and administered by Washington Mutual Mortgage Securities Corp.
(the "Company"), which term includes any successor entity under the
Pooling Agreement referred to below, and (ii) a pool of assets
("REMIC II") consisting of interests in REMIC I. REMIC I and REMIC
II were created pursuant to a Pooling and Servicing Agreement,
dated as of the Cut-Off Date stated above (the "Pooling
Agreement"), among the Company, Citibank, N.A., as Trustee (the
"Trustee"), and Christiana Bank & Trust Company, as Delaware
Trustee, a summary of certain of the pertinent provisions of which
is set forth hereafter. To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the
Pooling Agreement. Nothing herein shall be deemed inconsistent with
such meanings, and in the event of any conflict between the Pooling
Agreement and the terms of this Certificate, the Pooling Agreement
shall control. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Pooling Agreement, to
which Pooling Agreement the Holder of this Certificate, by virtue
of the acceptance hereof, assents and by which such Holder is
bound.

Distributions will be made, pursuant to the
Pooling Agreement, on the 25th day of each month or, if such 25th
day is not a Business Day, the Business Day immediately following
(the "Distribution Date"), commencing on the first Distribution
Date specified above, to the Person in whose name this Certificate
is registered at the close of business on the last day (or if such
last day is not a Business Day, the Business Day immediately
preceding such last day) of the month immediately preceding the
month of such distribution (the "Record Date"), to the extent of
such Certificateholder's Percentage Interest represented by this
Certificate in the portions (if any) then distributable on the
Certificates of this Class of (i) the REMIC I Available
Distribution Amount for such Distribution Date, as specified in
Section 4.01 of the Pooling Agreement, and (ii) the REMIC II
Available Distribution Amount for such Distribution Date, as
specified in Section 4.04 of the Pooling Agreement.

Distributions on this Certificate will be made by
the Trustee by wire transfer or check mailed to the address of the
Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by
the Trustee of the pendency of such distribution and only upon
presentation and surrender of this Certificate to the Certificate
Registrar.

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

Unless the certificate of authentication hereon
has been executed by or on behalf of the Trustee, by manual
signature, this Certificate shall not be entitled to any benefit
under the Pooling Agreement or be valid for any purpose.

B02

IN WITNESS WHEREOF, the Trust has caused this
Certificate to be duly executed.

WaMu MORTGAGE PASS-THROUGH CERTIFICATES SERIES
2004-CB3 TRUST

 

By:    CITIBANK, N.A., as
Trustee

 

By:
                                                                          

 

 

(TRUSTEE'S CERTIFICATE OF
AUTHENTICATION)

This is one of the Certificates referred to in
the within-mentioned Pooling Agreement.

CITIBANK, N.A.,

as Trustee

 

By:
                                                     

Dated:
                                                

B-3

 

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

WaMu MORTGAGE PASS-THROUGH CERTIFICATE

This Certificate is one of
a duly authorized issue of Certificates designated as WaMu Mortgage
Pass-Through Certificates of the Series and Class specified hereon
(herein called the "Certificates") and representing certain
interests in REMIC I and REMIC II.

The Certificates do not
represent an obligation of, or an interest in, the Company or any
of its affiliates and are not insured or guaranteed by any
governmental agency. The Certificates are limited in right of
payment to certain collections and recoveries respecting the
Mortgage Loans, all as more specifically set forth herein and in
the Pooling Agreement. In the event funds are advanced with respect
to any Mortgage Loan, such advance is reimbursable to the Master
Servicer from the related recoveries on such Mortgage Loan or from
other cash deposited in the Certificate Account to the extent that
such advance is not otherwise recoverable.

As provided in the Pooling
Agreement, withdrawals from the Certificate Account may be made
from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement to the
Master Servicer of advances made, or certain expenses incurred, by
it.

The Pooling Agreement
permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the
Company and the rights of the Certificateholders under the Pooling
Agreement at any time by the Company, the Master Servicer and the
Trustee with the consent of the Holders of the Certificates
evidencing Percentage Interests aggregating not less than 66% of
REMIC II. The Pooling Agreement also permits the amendment thereof,
in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

As provided in the Pooling
Agreement and subject to certain limitations therein set forth, the
transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of
transfer at the offices of the Certificate Registrar or the office
maintained by the Trustee in the City and State of New York, duly
endorsed by, or accompanied by an assignment in the form below or
other written instrument of transfer in form satisfactory to the
Trustee or any Authenticating Agent duly executed by, the Holder
hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of Authorized Denominations
evidencing the same Percentage Interest set forth hereinabove will
be issued to the designated transferee or transferees.

The Certificates are
issuable only as registered Certificates without coupons in
Authorized Denominations specified in the Pooling Agreement. As
provided in the Pooling Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for
new Certificates of Authorized Denominations of like Certificate
Principal Balance or Percentage Interest, as applicable, as
requested by the Holder surrendering the same.

A reasonable service
charge may be made for any such registration of transfer or
exchange, and the Trustee may require payment of a sum sufficient
to cover any tax or other governmental charge payable in connection
therewith.

The Company, the Trustee
and the Certificate Registrar and any agent of the Company, the
Trustee or the Certificate Registrar may treat the Person in whose
name this Certificate is registered as the owner hereof for all
purposes, and neither the Company, the Trustee, the Certificate
Registrar nor any such agent shall be affected by notice to the
contrary.

B-4

The obligations created by
the Pooling Agreement and the Trust created thereby shall terminate
upon (i) the later of the maturity or other liquidation (including
purchase by the Master Servicer) of the last Mortgage Loan
remaining in the Trust or the disposition of all property acquired
upon foreclosure or deed in lieu of foreclosure of any Mortgage
Loan, and (ii) the payment to Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the
Pooling Agreement. In the event that the Company or the Master
Servicer purchases any Mortgage Loan pursuant to the Pooling
Agreement, the Pooling Agreement generally requires that the
Trustee distribute to the Certificateholders in the aggregate an
amount equal to 100% of the unpaid Principal Balance of such
Mortgage Loan, plus unpaid accrued interest thereon at the
applicable Pass-Through Rate to the last day of the month in which
such purchase occurs. The Pooling Agreement permits, but does not
require, the Master Servicer to purchase from the Trust all
Mortgage Loans at the time subject thereto and all property
acquired in respect of any Mortgage Loan upon payment to the
Certificateholders of the amounts specified in the Pooling
Agreement. The exercise of such right will effect early retirement
of the Certificates, the Master Servicer’s right to purchase
being subject to the aggregate Principal Balance of the Mortgage
Loans at the time of purchase being less than the Clean-Up Call
Percentage of the aggregate Principal Balance of the Mortgage Loans
as of the Cut-Off Date.

B-5

ASSIGNMENT

 

FOR VALUE RECEIVED the undersigned
hereby sell(s) and assign(s) and transfer(s)
unto

                                                                                                                                                                                                                     

(Please print or typewrite
name and address, including postal zip code of assignee. Please
insert social security or other identifying number of
assignee.)

the within WaMu Mortgage Pass-Through
Certificate and hereby irrevocably constitutes and
appoints

                                                                                                                                                           

Attorney to transfer said Certificate on the
Certificate Register, with full power of substitution in the
premises.

Dated:
                        
           
                                                                                                           

Signature Guaranteed

                                                                                                           

NOTICE:    The signature to
this assignment must correspond with the name as written upon the
face of the within instrument in every particular, without
alteration or enlargement or any change whatever.  This
Certificate does not represent an obligation of or an interest in
Washington Mutual Mortgage Securities Corp. or any of its
affiliates.  Neither this Certificate nor the underlying
Mortgage Loans are guaranteed by any agency or instrumentality of
the United
States.

B-6

Exhibit C

ANTI-PREDATORY LENDING
CATEGORIZATION

 

I.             
High-Cost Loan Categorization

 

	
State/Jurisdiction

 

	
Name of Anti-Predatory Lending Law/Effective
Date

	
Category under
Applicable         Anti-Predatory Lending Law

	
Arkansas

	
Arkansas Home Loan Protection Act, Ark. Code Ann. §§ 23-53-101 et seq.

Effective July 16, 2003

	
High Cost Home Loan

	
Cleveland Heights, OH

	
Ordinance No. 72-2003 (PSH), Mun. Code §§ 757.01
et seq.

Effective June 2, 2003

	
Covered Loan

	
Colorado

	
Consumer Equity Protection, Colo.
Stat. Ann. §§ 5-3.5-101 et seq.

Effective for covered loans offered or entered into on or
after January 1, 2003. Other provisions of the Act took effect on June 7, 2002

	
Covered Loan

	
Connecticut

	
Connecticut Abusive Home Loan Lending
Practices Act, Conn. Gen. Stat. §§ 36a-746 et seq.

Effective October 1, 2001

	
High Cost Home Loan

	
District of Columbia

	
Home Loan Protection Act, D.C. Code §§ 26-1151.01
et seq.

Effective for loans closed on or after January 28, 2003

	
Covered Loan

	
Florida

	
Fair Lending Act, Fla. Stat. Ann. §§ 494.0078 et seq.

Effective October 2, 2002

	
High Cost Home Loan

	
Georgia(Oct 1, 2002 – Mar 6, 2003)

	
Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

Effective October 1, 2002 – March 6, 2003

	
High Cost Home Loan

	
Georgiaas amended (Mar 7, 2003 –
current)

	
Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

Effective for loans closed on or after March 7, 2003

	
High Cost Home Loan

	
HOEPA Section 32

	
Home Ownership and Equity Protection Act of 1994, 15 U.S.C.
§ 1639, 12 C.F.R. §§ 226.32 and 226.34

Effective October 1, 1995, amendments October 1, 2002

	
High Cost Loan

 

 

C-1

 

	
Illinois

	
High Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5 et seq.

Effective January 1, 2004 (prior to this date, regulations under Residential Mortgage License Act effective from May 14,
2001)

	
High Risk Home Loan

	
Kansas

	
Consumer Credit Code, Kan. Stat. Ann. §§ 16a-1-101 et seq.

Sections 16a-1-301 and 16a-3-207 became effective April 14, 1999; Section 16a-3-308a became effective July 1, 1999

	
High Loan to Value Consumer Loan (id. § 16a-3-207) and;

 

High APR Consumer Loan (id. § 16a-3-308a)

 

	
Kentucky

	
2003 KY H.B. 287 – High Cost Home Loan Act, Ky. Rev. Stat.
§§ 360.100 et seq.

Effective June 24, 2003

	
High Cost Home Loan

	
Maine

	
Truth in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101
et seq.

Effective September 29, 1995 and as amended from time to time

	
High Rate High Fee Mortgage

	
Massachusetts

	
Part 40 and Part 32, 209 C.M.R. §§ 32.00 et
seq. and 209 C.M.R. §§ 40.01 et seq.

Effective March 22, 2001 and amended from time to time

	
High Cost Home Loan

	
Nevada

	
Assembly Bill No. 284, Nev. Rev. Stat. §§ 598D.010
et seq.

Effective October 1, 2003

	
Home Loan

	
New Jersey

	
New Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat.
§§ 46:10B-22 et seq.

Effective for loans closed on or after November 27, 2003

	
High Cost Home Loan

	
New York

	
Home Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1
et seq.

Effective as of January 1, 2004; Revised as of February 26, 2004

	
High Cost Home Loan

	
New Mexico

	
N.Y. Banking Law Article 6-l

Effective for applications made on or after April 1, 2003

	
High Cost Home Loan

 

 

C-2

 

 

	
North Carolina

	
Restrictions and Limitations on High Cost Home Loans, N.C. Gen.
Stat. §§ 24-1.1E et seq.

Effective July 1, 2000; amended October 1, 2003 (adding open-end lines of credit)

	
High Cost Home Loan

	
Ohio

	
H.B. 386 (codified in various sections of the Ohio Code), Ohio
Rev. Code Ann. §§ 1349.25 et seq.

Effective May 24, 2002

	
Covered Loan

	
Oklahoma

	
Consumer Credit Code (codified in various sections of Title
14A)

Effective July 1, 2000; amended effective January 1, 2004

	
Subsection 10 Mortgage

	
South Carolina

	
South Carolina High Cost and Consumer Home
Loans Act, S.C. Code Ann. §§ 37-23-10 et seq.

Effective for loans taken on or after January 1, 2004

	
High Cost Home Loan

	
West Virginia

	
West VirginiaResidential Mortgage Lender, Broker and Servicer
Act, W. Va. Code Ann. §§ 31-17-1 et seq.

Effective June 5, 2002

	
West Virginia Mortgage Loan Act Loan

 

 

II.
          
Covered Loan Categorization

                                                                               
    
          
    

	
State/Jurisdiction

	
Name of Anti-Predatory Lending Law/Effective
Date

	
Category under
Applicable        
Anti-Predatory Lending Law

	
Georgia(Oct 1,
2002 – Mar 6,
2003)

	
Georgia Fair Lending Act, Ga. Code
Ann. §§ 7-6A-1 et seq.

Effective October 1, 2002 – March 6, 2003

	
Covered Loan

	
New Jersey

	
New Jersey Home Ownership Security Act of 2002,
N.J. Rev. Stat. §§ 46:10B-22 et
seq.

Effective November 27, 2003 – July 5,
2004

	
Covered Home
Loan

 

C-3 

 

Exhibit D

Mortgage Loan Schedule

 

 

	 	       
Copies of the Mortgage Loan Schedule (which has been intentionally omitted from
this filing) may be obtained from Washington Mutual Mortgage Securities Corp. or
Citibank, N.A. by contacting:

 

	 	
      in the case of Washington Mutual Mortgage Securities Corp.,  

 

	 	       
Laura Kelsey 
        Master Servicing Department 
        Washington Mutual Mortgage Securities Corp.

        75 N. Fairway Drive,VHF2A01 
         Vernon Hills, IL 60061

        Telephone:  (847) 393-5198

        Facsimile:     (847) 549-2997 

 

	 	
      in the case of Citibank, N.A., 

 

	 	       
Karen Schluter
        Citibank, N.A.
        111 Wall Street

        14th Floor, Zone 3

         New York, NY  10005
        Telephone:  (212)
657-7781
        Facsimile:    (212) 657-4009

D-1

Exhibit E

SELLING AND SERVICING

CONTRACT

 

This Selling and Servicing Contract (this
"Agreement") is made and entered into by Washington Mutual Mortgage
Securities Corp. and its successors and assigns ("Washington Mutual
Mortgage") and the entity identified below and its successors and
assigns (the "Company").

 

WITNESSETH:

           
WHEREAS, this Company
wishes to sell first lien residential mortgage loans to, and
service first lien residential mortgage loans on behalf of,
Washington Mutual Mortgage; and

           
WHEREAS, the
Company has submitted a Seller Application to Washington Mutual
Mortgage and has been approved by Washington Mutual Mortgage for
participation in the Washington Mutual Mortgage Purchase Programs;
and

           
WHEREAS, the
Company has received and reviewed the Washington Mutual Mortgage
Purchase Programs Seller Guide (the "Seller Guide"), as well as the
Washington Mutual Mortgage Servicing Guide (the "Servicing Guide"
and, together with the Seller Guide, the "Guides"), and understands
each and every provision thereof;

           
NOW, THEREFORE, in
consideration of the premises and of the mutual agreements herein
contained, Washington Mutual Mortgage and the Company hereby agree
as follows:

           
1.         Guides.  The Guides, which
set forth the terms and conditions under which Washington Mutual
Mortgage may elect to purchase mortgage loans from the Company, and
the Company shall service mortgage loans on behalf of Washington
Mutual Mortgage, are a supplement to this Agreement and such
Guides, as may be amended or supplemented from time to time by
Washington Mutual Mortgage, are incorporated into this Agreement in
full by reference and made a part hereof as fully as if set forth
at length herein.  All capitalized terms used and not defined
herein have the meanings ascribed to them in the Guides.

           
2.        
Company’s Duties.  The Company shall diligently
perform all duties incident to the origination, sale and servicing
of the mortgage loans subject to this Agreement.  In the
performance of its servicing duties, the Company shall exercise the
same degree of care it exercises when servicing mortgage loans for
its own account, but in no event shall the Company exercise less
care than a reasonable prudent servicer would exercise under
similar circumstances.  In addition, the Company shall comply
with all of the provisions of the Guides and with all other
requirements and instructions of Washington Mutual Mortgage. 
The Company shall perform such duties at its sole expense, except
as otherwise expressly provided in the Guides.

           
3.         Representations, Warranties and
Covenants of the Company; Remedies of WashingtonMutual
Mortgage.  With respect to each
mortgage loan sold by the Company to Washington Mutual Mortgage
pursuant to the terms of this Agreement, the Company shall make all
of the representations, warranties and covenants set forth in the
Guide and, in the event of the breach of any of such
representations, warranties and covenants, Washington Mutual
Mortgage shall have all of the remedies available at law or in
equity, as well as all of the remedies set forth in the Guide,
including, but not limited to, repurchase and
indemnification.  The representations and warranties made by
the Company with respect to any mortgage loan subject to this
Agreement, as well as the remedies available to Washington Mutual
Mortgage upon the breach thereof, shall survive:  (a) any
investigation regarding the mortgage loan conducted by Washington
Mutual Mortgage, its assignees or designees, (b) the liquidation of
the mortgage loan, (c) the purchase of the mortgage loan by
Washington Mutual Mortgage, its assignee or designee, (d) the
repurchase of the mortgage loan by the Company and (e) the
termination of this Agreement.

 

E-1 

           
4.         Compensation.  The Company
shall be compensated for its services hereunder as specified in the
Guides.

           
5.         No Assignment.  This
Agreement may not be assigned by the Company without the prior
written consent of Washington Mutual Mortgage.  The Company
hereby consents to the assignment by Washington Mutual Mortgage of
all or any part of its rights and obligations under this Agreement
to any affiliate designated by Washington Mutual Mortgage. 
Any other transfer by Washington Mutual Mortgage will be allowed
and be effective upon written notice by Washington Mutual Mortgage
to the Company.

           
6.         Prior Agreements.  This
Agreement supersedes any prior agreements and understandings
between Washington Mutual Mortgage and the Company governing the
subject matter hereof; provided, however, the Company shall not be
released from any responsibility or liability that may have arisen
under such agreements and understanding.

           
7.         Effective Date of
Agreement.  This Agreement is not effective until it is
executed and accepted by Washington Mutual Mortgage at its home
office in Illinois.

           
8.         Notices.  All notices,
requests, demands or other communications that are to be given
under this Agreement shall be in writing, addressed to the
appropriate parties, and shall be sent by certified mail, return
receipt requested, postage prepaid, if to the Company, at the
address below and, if to Washington Mutual Mortgage, to the
appropriate address or facsimile number specified in the
Guides.  Any such notice, request, demand or other
communication shall be deemed effective upon receipt.

           
9.         Independent Contractor.  At
no time shall the Company represent that it is acting as an agent,
partner or joint venturer of Washington Mutual Mortgage.  The
Company shall at all times act as an independent contracting
party.

           
10.        Amendment.  This Agreement
may not be amended or modified orally, and no provision of this
Agreement may be waived or amended, except in writing signed by the
party against whom enforcement is sought.  Such a written
waiver or amendment must expressly reference this Agreement. 
However, by their terms the Guides may be amended or supplemented
by Washington Mutual Mortgage from time to time.  Any such
amendment(s) to the Guides shall be in writing and be binding upon
the parties hereto on and after the effective date specified
therein.

           
11.        Miscellaneous.  This
Agreement, including all documents incorporated by reference
herein, constitutes the entire understanding between the parties
hereto and supersedes all other agreements, covenants,
representations, warranties, understandings and communications
between the parties, whether written or oral, with respect to the
transactions contemplated by this Agreement.  All section
headings contained herein are for convenience only and shall not be
construed as part of this Agreement.  Any provision of this
Agreement that is prohibited or unenforceable in any jurisdiction
shall as to such jurisdiction be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining
portions hereof or affecting the validity or enforceability of such
provision in any other jurisdiction, and to this end, the
provisions hereof are severable.  This Agreement shall be
governed by, and construed and enforced in accordance with,
applicable federal laws and laws of the State of
Illinois,
without reference to conflict of laws principles. This Agreement
may be executed in one or more counterparts, each of which shall
constitute an original and all of which shall constitute the same
Agreement.

 

E-2 

           
IN WITNESS WHEREOF, the
parties have executed this Agreement by proper officials duly
authorized on the dates hereinafter set forth.  This Agreement
shall take effect as of the date of its execution in original or
facsimile signature by a duly authorized officer of Washington
Mutual Mortgage.

 

	
__________________________________________

	
___________________________________

	
Name of the Company

	
Company I.D. Number

	
__________________________________________

	
___________________________________

	
Type of organization

	
Organized under laws of

	
________________________________________________________________________________

	
Principal place of business:  street
address, city, state, zip code

	
________________________________________________________________________________

	
Typed name and title of the Company’s
authorized officer

	
_______________________________________________________

	
_______________________

	
Signature of the Company’s authorized
officer

	
Date

	
 

Agreed to and accepted by Washington Mutual
Mortgage Securities Corp.

	
________________________________________________________________________________

	
Typed name and title of authorized
representative

	
_______________________________________________________

	
_______________________

	
Signature of authorized
representative

	
Date

			

 

 

 

E-3 

Exhibit F

FORM OF TRANSFEROR
CERTIFICATE FOR

JUNIOR SUBORDINATE
CERTIFICATES

 

[Date]

Citibank, N.A., as Trustee

111 Wall Street, 14th Floor, Zone 3

New York, New York 10005

Attn:  Structured Finance Group,
Washington Mutual 2004-CB3

 

Re:       Purchase
of Washington Mutual Mortgage Securities Corp. WaMu Mortgage
Pass-Through Certificates Series 2004-CB3, Class [  
]  (the "Certificates")

Ladies and
Gentlemen:

In connection with our disposition of the above
Certificates we certify that (a) we understand the Certificates
have not been registered under the Securities Act of 1933, as
amended (the "Act") and are being disposed by us in a transaction
that is exempt from the registration requirements of the Act, and
(b) we have not offered or sold any certificates to, or solicited
offers to buy any Certificates from, any person, or otherwise
approached or negotiated with any person with respect thereto, or
taken any other action which would result in a violation of Section
5 of the Act.

 

Very truly yours,

[Name of Transferor]

 

By:                                                      

                  
Authorized Officer

 

F-1 

Exhibit G

FORM OF TRANSFEREE'S
AGREEMENT FOR

JUNIOR SUBORDINATE CERTIFICATES

[Date]

Citibank, N.A., as Trustee

111 Wall Street, 14th Floor, Zone 3

New York, New York 10005

Attn:  Structured
Finance Group, Washington Mutual
2004-CB3

Washington Mutual Mortgage Securities
Corp.

75 N. Fairway Drive

Vernon Hills, Illinois  60061 

The undersigned (the "Purchaser") proposes to
purchase Washington Mutual Mortgage Securities Corp. WaMu Mortgage
Pass-Through Certificates, Series 2004-CB3, Class [   ]
(the "Purchased Certificates") in the principal amount of
$______________. In doing so, the Purchaser hereby acknowledges and
agrees as follows:

Section 1. Definitions. Each capitalized term
used herein and not otherwise defined herein shall have the meaning
ascribed to it in the Pooling and Servicing Agreement, dated as of
August 1, 2004 (the "Pooling Agreement"), by and among Washington
Mutual Mortgage Securities Corp. ("Washington Mutual"), Citibank,
N.A., as trustee (the "Trustee"), and Christiana Bank & Trust
Company, as Delaware trustee, of the Washington Mutual Mortgage
Securities Corp. WaMu Mortgage Pass-Through Certificates, Series
2004-CB3.

Section 2. Representations and Warranties of the
Purchaser. In connection with the proposed transfer, the Purchaser
represents and warrants to Washington Mutual, the Trustee and the
Trust that:

(a)        The
Purchaser is duly organized, validly existing and in good standing
under the laws of the jurisdiction in which the Purchaser is
organized, is authorized to invest in the Purchased Certificates,
and to enter into this Agreement, and duly executed and delivered
this Agreement;

(b)        The
Purchaser is acquiring the Purchased Certificates for its own
account as principal and not with a view to the distribution
thereof, in whole or in part;

(c)        The
Purchaser is an "accredited investor" as such term is defined in
paragraph (a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) of Section 501
of Regulation D under the Securities Act of 1933, as amended (the
"Act"), has knowledge of financial and business matters and is
capable of evaluating the merits and risks of an investment in the
Purchased Certificates; the Purchaser has sought such accounting,
legal and tax advice as it has considered necessary to make an
informed investment decision; and the Purchaser is able to bear the
economic risk of an investment in the Purchased Certificates and
can afford a complete loss of such investment;

(d)        The
Purchaser is not affiliated with the Trustee;

 

 

(e)        The
Purchaser confirms that Washington Mutual has made available to the
Purchaser the opportunity to ask questions of, and receive answers
from Washington Mutual concerning the trust created pursuant to the
Pooling Agreement (the "Trust"), the purchase by the Purchaser of
the Purchased Certificates and all matters relating thereto that
Washington Mutual possesses or can acquire without unreasonable
effort or expense; and

(f)        If
applicable, the Purchaser has complied, and will continue to
comply, with the guidelines established by Thrift Bulletin 13a
issued April 23,
1998, by the Office of Regulatory Activities
of the Federal Home Loan Bank System.

Section 3. Transfer of Purchased
Certificates.

(a)        The
Purchaser understands that the Purchased Certificates have not been
registered under the Act, or any state securities laws and that no
transfer may be made unless the Purchased Certificates are
registered under the Act and under applicable state law or unless
an exemption from registration is available. The Purchaser further
understands that neither Washington Mutual nor the Trust is under
any obligation to register the Purchased Certificates or make an
exemption available. In the event that such a transfer is to be
made within two years from the Closing Date without registration
under the Act or applicable state securities laws, (i) the Trustee
shall require, in order to assure compliance with such laws, that
the Certificateholder's prospective transferee each certify to
Washington Mutual, the Trustee and the Trust as to the factual
basis for the registration or qualification exemption relied upon,
and (ii) the Trustee or Washington Mutual may require an Opinion of
Counsel that such transfer may be made pursuant to an exemption
from the Act and state securities laws, which Opinion of Counsel
shall not be an expense of the Trust, the Trustee or Washington
Mutual. Any such Certificateholder desiring to effect such transfer
shall, and does hereby agree to, indemnify the Trust, the Trustee
and Washington Mutual against any liability that may result if the
transfer is not so exempt or is not made in accordance with such
federal and state laws.

(b)        No
transfer of a Purchased Certificate shall be made unless the
transferee provides Washington Mutual and the Trustee with (i) a
Transferee's Agreement, substantially in the form of this
Agreement, (ii) an affidavit substantially in the form of Exhibit N
to the Pooling Agreement and (iii) if so indicated in such
affidavit, a Benefit Plan Opinion (as defined in Section 1.01 of
the Pooling Agreement).

(c)        The
Purchaser acknowledges that its Purchased Certificates bear a
legend setting forth the applicable restrictions on
transfer.

IN WITNESS WHEREOF, the undersigned has caused
this Agreement to be validly executed by its duly authorized
representative as of the day and the year first above
written.

[Purchaser]

 

 

By:
                                                                 

Its:

Exhibit H

FORM OF ADDITIONAL MATTER
INCORPORATED INTO

THE FORM OF THE CERTIFICATES (OTHER THAN THE
CLASS R CERTIFICATES)

This Certificate does not represent an obligation
of or interest in Washington Mutual Mortgage Securities Corp. or
any of its affiliates. Neither this Certificate nor the underlying
Mortgage Loans are guaranteed by any agency or instrumentality of
the United
States.

This certifies that the above-named Registered
Owner is the registered owner of certain interests in a pool of
assets ("REMIC II") consisting of interests in another pool of
assets ("REMIC I") consisting of, among other things, conventional
one- to four-family mortgage loans (the "Mortgage Loans"), formed
and administered by Washington Mutual Mortgage Securities Corp.
(the "Company"), which term includes any successor entity under the
Pooling Agreement referred to below. REMIC I and REMIC II were
created pursuant to a Pooling and Servicing Agreement, dated as of
the Cut-Off Date stated above (the "Pooling Agreement"), among the
Company, Citibank, N.A., as Trustee (the "Trustee"), and Christiana
Bank & Trust Company, as Delaware Trustee, a summary of certain
of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have
the meanings assigned in the Pooling Agreement. Nothing herein
shall be deemed inconsistent with such meanings, and in the event
of any conflict between the Pooling Agreement and the terms of this
Certificate, the Pooling Agreement shall control. This Certificate
is issued under and is subject to the terms, provisions and
conditions of the Pooling Agreement, to which Pooling Agreement the
Holder of this Certificate, by virtue of the acceptance hereof,
assents and by which such Holder is bound.

Distributions will be made, pursuant to the
Pooling Agreement, on the 25th day of each month or, if such 25th
day is not a Business Day, the Business Day immediately following
(the "Distribution Date"), commencing on the first Distribution
Date specified above, to the Person in whose name this Certificate
is registered at the close of business on the last day (or if such
last day is not a Business Day, the Business Day immediately
preceding such last day) of the month immediately preceding the
month of such distribution (the "Record Date"), to the extent of
such Certificateholder's Percentage Interest represented by this
Certificate in the portion of the REMIC II Available Distribution
Amount for such Distribution Date then distributable on the
Certificates of this Class, as specified in Section 4.04 of the
Pooling Agreement.

Distributions on this Certificate will be made by
the Trustee by wire transfer or check mailed to the address of the
Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by
the Trustee of the pendency of such distribution and only upon
presentation and surrender of this Certificate to the Certificate
Registrar.

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

Unless the certificate of authentication hereon
has been executed by or on behalf of the Trustee, by manual
signature, this Certificate shall not be entitled to any benefit
under the Pooling Agreement or be valid for any purpose.

 

 

IN WITNESS WHEREOF, the Trust has caused this
Certificate to be duly executed.

WaMu MORTGAGE PASS-THROUGH CERTIFICATES SERIES
2004-CB3 TRUST

 

By:    CITIBANK, N.A., as
Trustee

 

By:
                                                                          

 

 

(TRUSTEE'S CERTIFICATE OF
AUTHENTICATION)

This is one of the Certificates referred to in
the within-mentioned Pooling Agreement.

CITIBANK, N.A.,

as Trustee

 

By:
                                                     

Dated:
                                                

 

 

WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP.

WaMu MORTGAGE PASS-THROUGH
CERTIFICATE

This Certificate is one of
a duly authorized issue of Certificates designated as WaMu Mortgage
Pass-Through Certificates of the Series and Class specified hereon
(herein called the "Certificates") and representing certain
interests in REMIC II.

The Certificates do not
represent an obligation of, or an interest in, the Company or any
of its affiliates and are not insured or guaranteed by any
governmental agency. The Certificates are limited in right of
payment to certain collections and recoveries respecting the
Mortgage Loans, all as more specifically set forth herein and in
the Pooling Agreement. In the event funds are advanced with respect
to any Mortgage Loan, such advance is reimbursable to the Master
Servicer from the related recoveries on such Mortgage Loan or from
other cash deposited in the Certificate Account to the extent that
such advance is not otherwise recoverable.

As provided in the Pooling
Agreement, withdrawals from the Certificate Account may be made
from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement to the
Master Servicer of advances made, or certain expenses incurred, by
it.

The Pooling Agreement
permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the
Company and the rights of the Certificateholders under the Pooling
Agreement at any time by the Company, the Master Servicer and the
Trustee with the consent of the Holders of the Certificates
evidencing Percentage Interests aggregating not less than 66% of
REMIC II. Any such consent by the Holder of this Certificate shall
be conclusive and binding on such Holder and upon all future
Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or
not notation of such consent is made upon this Certificate. The
Pooling Agreement also permits the amendment thereof, in certain
limited circumstances, without the consent of the Holders of any of
the Certificates.

As provided in the Pooling
Agreement and subject to certain limitations therein set forth, the
transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of
transfer at the offices of the Certificate Registrar or the office
maintained by the Trustee in the City and State of New York, duly
endorsed by, or accompanied by an assignment in the form below or
other written instrument of transfer in form satisfactory to the
Trustee or any Authenticating Agent duly executed by, the Holder
hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of Authorized Denominations
evidencing the same Percentage Interest set forth hereinabove will
be issued to the designated transferee or transferees.

[to be used only in the
case of the Junior Subordinate Certificates:] [No transfer of a
Certificate will be made unless such transfer is exempt from or is
made in accordance with the registration requirements of the
Securities Act of 1933, as amended (the "Securities Act") and any
applicable state securities laws. In the event that a transfer is
to be made without registration or qualification under applicable
laws, (i) in the event such transfer is made pursuant to Rule 144A
under the Securities Act, the Company and the Trustee shall require
the transferee to execute an investment letter in substantially the
form attached as Exhibit L to the Pooling Agreement, which
investment letter shall not be an expense of the Company, the
Master Servicer, the Trust or the Trustee and (ii) in the event
that such a transfer is not made pursuant to Rule 144A under the
Securities Act, the Trustee may require an Opinion of Counsel
satisfactory to the Trustee that such transfer may be made without
such registration or qualification, which Opinion of Counsel shall
not be an expense of the Company, the Master Servicer, the Trust or
the Trustee. Neither the Company nor the Trust will register the
Certificate under the Securities Act, qualify the Certificate under
any state securities law or provide registration rights to any
purchaser. Any Holder desiring to effect such transfer shall, and
does hereby agree to, indemnify the Trust, the Trustee, the Company
and the Master Servicer against any liability that may result if
the transfer is not so exempt or is not made in accordance with
such federal and state laws.]

 

The Certificates are
issuable only as registered Certificates without coupons in
Authorized Denominations specified in the Pooling Agreement. As
provided in the Pooling Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for
new Certificates of Authorized Denominations of like Certificate
Principal Balance or Percentage Interest, as applicable, as
requested by the Holder surrendering the same.

A reasonable service
charge may be made for any such registration of transfer or
exchange, and the Trustee may require payment of a sum sufficient
to cover any tax or other governmental charge payable in connection
therewith.

The Company, the Trustee
and the Certificate Registrar and any agent of the Company, the
Trustee or the Certificate Registrar may treat the Person in whose
name this Certificate is registered as the owner hereof for all
purposes, and neither the Company, the Trustee, the Certificate
Registrar nor any such agent shall be affected by notice to the
contrary.

The obligations created by
the Pooling Agreement and the Trust created thereby shall terminate
upon (i) the later of the maturity or other liquidation (including
purchase by the Master Servicer) of the last Mortgage Loan
remaining in the Trust or the disposition of all property acquired
upon foreclosure or deed in lieu of foreclosure of any Mortgage
Loan, and (ii) the payment to Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the
Pooling Agreement. In the event that the Company or the Master
Servicer purchases any Mortgage Loan pursuant to the Pooling
Agreement, the Pooling Agreement generally requires that the
Trustee distribute to the Certificateholders in the aggregate an
amount equal to 100% of the unpaid Principal Balance of such
Mortgage Loan, plus unpaid accrued interest thereon at the
applicable Pass-Through Rate to the last day of the month in which
such purchase occurs. The Pooling Agreement permits, but does not
require, the Master Servicer to purchase from the Trust all
Mortgage Loans at the time subject thereto and all property
acquired in respect of any Mortgage Loan upon payment to the
Certificateholders of the amounts specified in the Pooling
Agreement. The exercise of such right will effect early retirement
of the Certificates, the Master Servicer’s right to purchase
being subject to the aggregate Principal Balance of the Mortgage
Loans at the time of purchase being less than the Clean-Up Call
Percentage of the aggregate Principal Balance of the Mortgage Loans
as of the Cut-Off Date.

 

ASSIGNMENT

 

FOR VALUE RECEIVED the
undersigned hereby sell(s) and assign(s) and transfer(s)
unto

                                                                                                                                                                                                                     

(Please print or typewrite
name and address, including postal zip code of assignee. Please
insert social security or other identifying number of
assignee.)

the within WaMu Mortgage Pass-Through
Certificate and hereby irrevocably constitutes and
appoints

                                                                                                                                                           

Attorney to transfer said Certificate on the
Certificate Register, with full power of substitution in the
premises.

Dated:
                        
           
                                                                                                           

Signature Guaranteed

                                                                                                           

NOTICE:    The signature to
this assignment must correspond with the name as written upon the
face of the within instrument in every particular, without
alteration or enlargement or any change whatever.  This
Certificate does not represent an obligation of or an interest in
Washington Mutual Mortgage Securities Corp. or any of its
affiliates.  Neither this Certificate nor the underlying
Mortgage Loans are guaranteed by any agency or instrumentality of
the United
States.

Exhibit I

TRANSFEROR CERTIFICATE

[Date]

Citibank, N.A., as Trustee

111 Wall Street, 14th Floor, Zone 3

New York, New York 10005

Attn:  Structured
Finance Group, Washington Mutual
2004-CB3

Re:      Washington Mutual
Mortgage Securities Corp.

WaMu Mortgage Pass-Through Certificates, Series 2004-CB3, Class
R

Ladies and
Gentlemen:

This letter is delivered to you in connection
with the sale from
                                        
 (the "Seller") to
          
                                   
(the "Purchaser") of $____________________ initial Certificate
Principal Balance of WaMu Mortgage Pass-Through Certificates,
Series 2004-CB3, Class R (the "Certificate"), pursuant to Section
5.01 of the Pooling and Servicing Agreement (the "Pooling
Agreement"), dated as of August 1, 2004 among Washington Mutual
Mortgage Securities Corp., as depositor and master servicer (the
"Company"), Citibank, N.A., as trustee (the "Trustee"), and
Christiana Bank & Trust Company, as Delaware trustee. All terms
used herein and not otherwise defined shall have the meanings set
forth in the Pooling Agreement. The Seller hereby certifies,
represents and warrants to, and covenants with, the Company, the
Trustee and the Trust that:

1.        
No purpose of the Seller relating to the sale of the Certificate by
the Seller to the Purchaser is or will be to enable the Seller to
impede the assessment or collection of tax.

2.        
The Seller understands that the Purchaser has delivered to the
Trustee and the Company a transferee affidavit and agreement in the
form attached to the Pooling Agreement as Exhibit J. The Seller
does not know or believe that any representation contained therein
is false.

3.        
The Seller has no actual knowledge that the proposed Transferee is
not a Permitted Transferee.

4.        
The Seller has no actual knowledge that the Purchaser would be
unwilling or unable to pay taxes due on its share of the taxable
income attributable to the Certificates.

5.        
The Seller has conducted a reasonable investigation of the
financial condition of the Purchaser and, as a result of the
investigation, found that the Purchaser has historically paid its
debts as they came due, and found no significant evidence to
indicate that the Purchaser will not continue to pay its debts as
they come due in the future.

6.        
The Purchaser has represented to the Seller that, if the
Certificates constitute a noneconomic residual interest, it (i)
understands that as holder of a noneconomic residual interest it
may incur tax liabilities in excess of any cash flows generated by
the interest, and (ii) intends to pay taxes associated with its
holding of the Certificates as they become due.

Very truly yours,

 

[Seller]

 

By:
                                                                             

      Name:
                                                                  

      Title:
                                                                     

Exhibit J

TRANSFEREE AFFIDAVIT AND
AGREEMENT

 

STATE OF      
          
)

                                      )   ss:

COUNTY
OF              ) 

[NAME OF OFFICER], being first duly sworn,
deposes and says:

1.        
That he is [Title of Officer] of [Name of Owner] (record or
beneficial owner of the Class R Certificate (the "Owner")), a
[savings institution] [corporation] duly organized and existing
under the laws of [the State of
                 
] [the United
States], on behalf of which he makes this
affidavit and agreement.

2.        
That the Owner (i) is not and will not be a "disqualified
organization" as of [date of transfer] within the meaning of
Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended
(the "Code") and will endeavor to remain other than a disqualified
organization for so long as it retains its ownership interest in
the Class R Certificates, and (ii) is acquiring the Class R
Certificates for its own account or for the account of another
Owner from which it has received an affidavit and agreement in
substantially the same form as this affidavit and agreement. (For
this purpose, a disqualified organization" means the United States,
any state or political subdivision thereof, or any agency or
instrumentality of any of the foregoing (other than an
instrumentality all of the activities of which are subject to tax
and, except for the Federal Home Loan Mortgage Corporation, a
majority of whose board of directors is not selected by any such
governmental entity), or any foreign government or international
organization, or any agency or instrumentality of such foreign
government or organization, any rural electric or telephone
cooperative, or any organization (other than certain farmers'
cooperatives) that is generally exempt from federal income tax
unless such organization is subject to the tax on unrelated
business taxable income).

3.        
That the Owner is aware (i) of the tax that would be imposed on
transfers of the Class R Certificates after March 31, 1988; (ii)
that such tax would be on the transferor, or, if such transfer is
through an agent (which person includes a broker, nominee or
middle-man) for a disqualified organization, on the agent; (iii)
that the person otherwise liable for the tax shall be relieved of
liability for the tax if the transferee furnishes to such person an
affidavit that the transferee is not a disqualified organization
and, at the time of transfer, such person does not have actual
knowledge that the affidavit is false; and (iv) that the Class R
Certificates may be a "noneconomic residual interest" within the
meaning of Treasury regulations promulgated pursuant to the Code
and that the transferor of a noneconomic residual interest will
remain liable for any taxes due with respect to the income on such
residual interest, if a significant purpose of the transfer was to
enable the transferor to impede the assessment or collection of
tax.

4.        
That the Owner is aware of the tax imposed on a "pass-through
entity" holding the Class R Certificates if at any time during the
taxable year of the pass-through entity a disqualified organization
is the record holder of an interest in such entity. (For this
purpose, a "pass through entity" includes a regulated investment
company, a real estate investment trust or common trust fund, a
partnership, trust or estate, and certain cooperatives.)

5.        
That the Owner is aware that the Trustee will not register the
Transfer of the Class R-1 Certificates unless the transferee, or
the transferees' agent, delivers to it an affidavit and agreement,
among other things, in substantially the same form as this
affidavit and agreement. The Owner expressly agrees that it will
not consummate any such transfer if it knows or believes that any
of the representations contained in such affidavit and agreement
are false.

6.        
That the Owner has reviewed the restrictions set forth on the face
of the Class R Certificates and the provisions of Section 5.01 of
the Pooling Agreement under which the Class R Certificates were
issued (in particular, clauses (iii)(A) and (iii)(B) of Section
5.01(c) which authorize the Trustee to deliver payments to a person
other than the Owner and negotiate a mandatory sale by the Trustee
in the event the Owner holds such Certificates in violation of
Section 5.01). The Owner expressly agrees to be bound by and to
comply with such restrictions and provisions.

7.        
That the Owner consents to any additional restrictions or
arrangements that shall be deemed necessary upon advice of counsel
to constitute a reasonable arrangement to ensure that the Class R
Certificates will only be owned, directly or indirectly, by an
Owner that is not a disqualified organization.

8.        
The Owner's Taxpayer Identification Number is
                              
..

9.        
That no purpose of the Owner relating to the purchase of the Class
R Certificates by the Owner is or will be to enable the transferor
to impede the assessment or collection of tax, and that in making
this representation, the Owner warrants that the Owner is familiar
with Treasury Regulation 1.860E-1(c) and with the preamble to the
adoption of amendments to that regulation as of July 19, 2002,
attached hereto as Exhibit 1.

10.       
That the Owner anticipates that it will, so long as it holds the
Class R Certificates, have sufficient assets to pay any taxes owed
by the holder of such Certificates, and hereby represents to and
for the benefit of the person from whom it acquired the Class R
Certificates that the Owner intends to pay taxes associated with
holding such Certificates as they become due, fully understanding
that it may incur tax liabilities in excess of any cash flows
generated by the Class R Certificates. That the Owner has provided
financial statements or other financial information requested by
the transferor in connection with the transfer of the Class R
Certificates to permit the transferor to assess the financial
capability of the Owner to pay such taxes.

11.       
That the Owner has no present knowledge or expectation that it will
be unable to pay any United States taxes owed by it so
long as any of the Class R Certificates remain
outstanding.

12.       
That the Owner has no present knowledge or expectation that it will
become insolvent or subject to a bankruptcy proceeding for so long
as any of the Class R Certificates remain outstanding.

13.       
That the Owner is familiar with Treasury Regulation 1.860E-1(c) and
with the preamble to the adoption of amendments to that regulation
as of July 19, 2002, attached hereto as Exhibit 1, and that no
purpose of the Owner relating to any sale of the Class R
Certificates by the Owner will be to impede the assessment or
collection of tax.

14.        The
Owner is a citizen or resident of the United States, a corporation,
partnership or other entity treated as a partnership or corporation
for U.S. federal income tax purposes created or organized in, or
under the laws of, the United States or any state thereof or the
District of Columbia, or an estate or trust whose income from
sources without the United States is includible in gross income for
United States federal income tax purposes regardless of its
connection with the conduct of a trade or business within the
United States.

15.        The
Owner hereby agrees that it will not cause income from the Class R
Certificates to be attributable to a foreign permanent
establishment or fixed base (within the meaning of an applicable
income tax treaty) of the Owner or another United States taxpayer.

16.        The
Owner hereby agrees to cooperate with the Company and to take any
action required of it by the Code or Treasury regulations
thereunder (whether now or hereafter promulgated) in order to
create or maintain the REMIC status of REMIC I and REMIC II (the
"REMICs").

17.        The
Owner hereby agrees that it will not take any action that could
endanger the REMIC status of the REMICs or result in the imposition
of tax on the REMICs unless counsel for, or acceptable to, the
Company has provided an opinion that such action will not result in
the loss of such REMIC status or the imposition of such tax, as
applicable.

18.        The
Owner as transferee of the Class R Certificates has represented to
the transferor that, if the Class R Certificates constitute a
noneconomic residual interest, the Owner (i) understands that as
holder of a noneconomic residual interest it may incur tax
liabilities in excess of any cash flows generated by the interest,
and (ii) intends to pay taxes associated with its holding of the
Class R Certificates as they become due.

           
19.        That the Owner
satisfies the condition in the paragraph marked below [mark one
paragraph only]:

___      The Owner is
not an employee benefit or other plan subject to the prohibited
transaction provisions of the Employee Retirement Income Security
Act of 1974, as amended, or Section 4975 of the Internal Revenue
Code of 1986, as amended (a "Plan"), or any other person (including
an investment manager, a named fiduciary or a trustee of any Plan)
acting, directly or indirectly, on behalf of, or purchasing the
Class R Certificates with "plan assets" of, any Plan within the
meaning of the Department of Labor ("DOL") regulation at 29 C.F.R.
Section 2510.3-101.

___      The Owner has
delivered a Benefit Plan Opinion (as defined in Section 1.01 of the
Pooling Agreement under which the Class R Certificates were
issued).

IN WITNESS WHEREOF, the Owner has caused this
instrument to be executed on its behalf, pursuant to the authority
of its Board of Directors, by its [Title of Officer] and its
corporate seal to be hereunto attached, attested by its [Assistant]
Secretary, this
          day
of          ,
20 __ .

[Name of Owner]

By:                                                      

                 
[Name of Officer]

                  
[Title of Officer]

[Corporate
Seal]

ATTEST:

 

 

[Assistant]
Secretary

Personally appeared before me the above-named
[Name of Officer], known or proved to me to be the same person who
executed the foregoing instrument and to be the [Title of Officer]
of the Owner, and Acknowledged to me that he executed the same as
his free act and deed and the free act and deed of the
Owner.

Subscribed and sworn before me this ___ day of
__________________, 20__.

 

 

NOTARY PUBLIC

 

COUNTY OF

STATE OF

My Commission expires
the     day

of
                   
 , 20     

 

Exhibit 1 to Transferee Affidavit

 

DEPARTMENT OF THE
TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 9004]

RIN 1545-AW98

Real Estate Mortgage Investment
Conduits

AGENCY: Internal Revenue Service
(IRS), Treasury.

ACTION: Final
regulations.

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

SUMMARY: This document contains
final regulations relating to safe harbor transfers of noneconomic
residual interests in real estate mortgage investment conduits
(REMICs). The final regulations provide additional limitations on
the circumstances under which transferors may claim safe harbor
treatment.

 

DATES:          
Effective Date: These regulations are effective July 19,
2002.

Applicability Date: For dates
of applicability, see Sec. 1.860E-

(1)(c)(10).

 FOR FURTHER INFORMATION CONTACT:
Courtney Shepardson at (202) 622-3940 (not a toll-free
number).

SUPPLEMENTARY
INFORMATION:

 Paperwork Reduction Act

 The collection of information in
this final rule has been reviewed and, pending receipt and
evaluation of public comments, approved by the Office of Management
and Budget (OMB) under 44 U.S.C. 3507 and assigned control number
1545-1675.  The collection of information in this regulation
is in Sec. 1.860E-1(c)(5)(ii). This information is required to
enable the IRS to verify that a taxpayer is complying with the
conditions of this regulation. The collection of information is
mandatory and is required. Otherwise, the taxpayer will not receive
the benefit of safe harbor treatment as provided in the regulation.
The likely respondents are businesses and other for-profit
institutions.

 Comments on the collection of
information should be sent to the Office of Management and Budget,
Attn: Desk Officer for the Department of the Treasury, Office of
Information and Regulatory Affairs, Washington, DC, 20503, with
copies to the Internal Revenue Service, Attn: IRS Reports Clearance
Officer, W:CAR:MP:FP:S, Washington, DC 20224. Comments on the
collection of information should be received by September 17, 2002.
Comments are specifically requested concerning: 

 

Whether the collection of
information is necessary for the proper performance of the
functions of the Internal Revenue Service, including whether the
information will have practical utility; 

 

The accuracy of the estimated
burden associated with the collection

of information (see
below);

How the quality, utility, and
clarity of the information to be collected may be
enhanced;

 

How the burden of complying
with the collection of information may be minimized, including
through the application of automated collection techniques or other
forms of information technology; and

 

Estimates of capital or
start-up costs and costs of operation,

maintenance, and purchase of
service to provide information.

An agency may not conduct or
sponsor, and a person is not required to respond to, a collection
of information unless it displays a valid control number assigned
by the Office of Management and
Budget.   

The estimated total annual
reporting burden is 470 hours, based on an estimated number of
respondents of 470 and an estimated average annual burden hours per
respondent of one hour.

Books or records relating to a
collection of information must be retained as long as their
contents may become material in the administration of any internal
revenue law. Generally, tax returns and tax return information are
confidential, as required by 26 U.S.C. 6103.

Background

This document contains final
regulations regarding the proposed amendments to 26 CFR part 1
under section 860E of the Internal Revenue Code (Code). The
regulations provide the circumstances under which a transferor of a
noneconomic REMIC residual interest meeting the investigation and
representation requirements may avail itself of the safe harbor by
satisfying either the formula test or the asset test.

Final regulations governing REMICs,
issued in 1992, contain rules governing the transfer of noneconomic
REMIC residual interests. In general, a transfer of a noneconomic
residual interest is disregarded for all tax purposes if a
significant purpose of the transfer is to enable the transferor to
impede the assessment or collection of tax. A purpose to impede the
assessment or collection of tax (a wrongful purpose) exists if the
transferor, at the time of the transfer, either knew or should have
known that the transferee would be unwilling or unable to pay taxes
due on its share of the REMIC's taxable income.

 

Under a safe harbor, the transferor
of a REMIC noneconomic residual interest is presumed not to have a
wrongful purpose if two requirements are satisfied: (1) the
transferor conducts a reasonable investigation of the transferee's
financial condition (the investigation requirement); and (2) the
transferor secures a representation from the transferee to the
effect that the transferee understands the tax obligations
associated with holding a residual interest and intends to pay
those taxes (the representation requirement).

The IRS and Treasury have been
concerned that some transferors of noneconomic residual interests
claim they satisfy the safe harbor even in situations where the
economics of the transfer clearly indicate the transferee is
unwilling or unable to pay the tax associated with holding the
interest. For this reason, on February 7, 2000, the IRS published
in the Federal Register (65 FR 5807) a notice of proposed
rulemaking (REG-100276-97; REG-122450-98) designed to clarify the
safe harbor by adding the ``formula test,'' an economic test. The
proposed regulation provides that the safe harbor is unavailable
unless the present value of the anticipated tax liabilities
associated with holding the residual interest does not exceed the
sum of: (1) The present value of any consideration given to the
transferee to acquire the interest; (2) the present value of the
expected future distributions on the interest; and (3) the present
value of the anticipated tax savings associated with holding the
interest as the REMIC generates losses.

The notice of proposed rulemaking
also contained rules for FASITs. Section 1.860H-6(g) of the
proposed regulations provides requirements for transfers of FASIT
ownership interests and adopts a safe harbor by reference to the
safe harbor provisions of the REMIC
regulations.   

In January 2001, the IRS published
Rev. Proc. 2001-12 (2001-3 I.R.B. 335) to set forth an alternative
safe harbor that taxpayers could use while the IRS and the Treasury
considered comments on the proposed regulations. Under the
alternative safe harbor, if a transferor meets the investigation
requirement and the representation requirement but the transfer
fails to meet the formula test, the transferor may invoke the safe
harbor if the transferee meets a two-prong test (the asset test). A
transferee generally meets the first prong of this test if, at the
time of the transfer, and in each of the two years preceding the
year of transfer, the transferee's gross assets exceed $100 million
and its net assets exceed $10 million. A transferee generally meets
the second prong of this test if it is a domestic, taxable
corporation and agrees in writing not to transfer the interest to
any person other than another domestic, taxable corporation that
also satisfies the requirements of the asset test. A transferor
cannot rely on the asset test if the transferor knows, or has
reason to know, that the transferee will not comply with its
written agreement to limit the restrictions on subsequent transfers
of the residual interest.

Rev. Proc. 2001-12 provides that
the asset test fails to be satisfied in the case of a transfer or
assignment of a noneconomic residual interest to a foreign branch
of an otherwise eligible transferee. If such a transfer or
assignment were permitted, a corporate taxpayer might seek to claim
that the provisions of an applicable income tax treaty would
resource excess inclusion income as foreign source income, and
that, as a consequence, any U.S. tax liability attributable to the
excess inclusion income could be offset by foreign tax credits.
Such a claim would impede the assessment or collection of U.S. tax
on excess inclusion income, contrary to the congressional purpose
of assuring that such income will be taxable in all events. See,
e.g., sections 860E(a)(1), (b), (e) and 860G(b) of the
Code.

 

The Treasury and the IRS have
learned that certain taxpayers transferring noneconomic residual
interests to foreign branches have attempted to rely on the formula
test to obtain safe harbor treatment in an effort to impede the
assessment or collection of U.S. tax on excess inclusion income.
Accordingly, the final regulations provide that if a noneconomic
residual interest is transferred to a foreign permanent
establishment or fixed base of a U.S. taxpayer, the transfer is not
eligible for safe harbor treatment under either the asset test or
the formula test. The final regulations also require a transferee
to represent that it will not cause income from the noneconomic
residual interest to be attributable to a foreign permanent
establishment or fixed base.

Section 1.860E-1(c)(8) provides
computational rules that a taxpayer may use to qualify for safe
harbor status under the formula test. Section 1.860E-1(c)(8)(i)
provides that the transferee is presumed to pay tax at a rate equal
to the highest rate of tax specified in section 11(b). Some
commentators were concerned that this presumed rate of taxation was
too high because it does not take into consideration taxpayers
subject to the alternative minimum tax rate. In light of the
comments received, this provision has been amended in the final
regulations to allow certain transferees that compute their taxable
income using the alternative minimum tax rate to use the
alternative minimum tax rate applicable to corporations.

Additionally, Sec.
1.860E-1(c)(8)(iii) provides that the present values in the formula
test are to be computed using a discount rate equal to the
applicable Federal short-term rate prescribed by section 1274(d).
This is a change from the proposed regulation and Rev. Proc.
2001-12. In those publications the provision stated that "present
values are computed using a discount rate equal to the applicable
Federal rate prescribed in section 1274(d) compounded semiannually"
and that "[a] lower discount rate may be used if the transferee can
demonstrate that it regularly borrows, in the course of its trade
or business, substantial funds at such lower rate from an unrelated
third party."  The IRS and the Treasury Department have
learned that, based on this provision, certain taxpayers have been
attempting to use unrealistically low or zero interest rates to
satisfy the formula test, frustrating the intent of the test.
Furthermore, the Treasury Department and the IRS believe that a
rule allowing for a rate other than a rate based on an objective
index would add unnecessary complexity to the safe harbor. As a
result, the rule in the proposed regulations that permits a
transferee to use a lower discount rate, if the transferee can
demonstrate that it regularly borrows substantial funds at such
lower rate, is not included in the final regulations; and the
Federal short-term rate has been substituted for the applicable
Federal rate. To simplify taxpayers' computations, the final
regulations allow use of any of the published short-term rates,
provided that the present values are computed with a corresponding
period of compounding. With the exception of the provisions
relating to transfers to foreign branches, these changes generally
have the proposed applicability date of February 4, 2000, but
taxpayers may choose to apply the interest rate formula set forth
in the proposed regulation and Rev. Proc. 2001-12 for transfers
occurring before August 19, 2002.

It is anticipated that when final
regulations are adopted with respect to FASITs, Sec. 1.860H-6(g) of
the proposed regulations will be adopted in substantially its
present form, with the result that the final regulations contained
in this document will also govern transfers of FASIT ownership
interests with substantially the same applicability date as is
contained in this document.

 

Effect on Other
Documents

Rev. Proc. 2001-12 (2001-3 I.R.B.
335) is obsolete for transfers of noneconomic residual interests in
REMICs occurring on or after August 19, 2002.

Special Analyses

It is hereby certified that these
regulations will not have a significant economic impact on a
substantial number of small entities. This certification is based
on the fact that it is unlikely that a substantial number of small
entities will hold REMIC residual interests. Therefore, a
Regulatory Flexibility Analysis under the Regulatory Flexibility
Act (5 U.S.C. chapter 6) is not required. It has been determined
that this Treasury decision is not a significant regulatory action
as defined in Executive Order 12866. Therefore, a regulatory
assessment is not required. It also has been determined that
sections 553(b) and 553(d) of the Administrative Procedure Act (5
U.S.C. chapter 5) do not apply to these regulations.

Drafting Information

The principal author of these
regulations is Courtney Shepardson. However, other personnel from
the IRS and Treasury Department participated in their
development.

List of Subjects

26 CFR Part 1

Income taxes, Reporting and record
keeping requirements.

26 CFR Part 602

 

Reporting and record keeping
requirements.

Adoption of Amendments to the
Regulations

Accordingly, 26 CFR parts 1 and 602
are amended as follows:

PART 1--INCOME TAXES

 

Paragraph 1. The authority
citation for part 1 continues to read in part as
follows:

    Authority: 26
U.S.C. 7805 * * *

 

Exhibit K

[Reserved]

Exhibit L

[FORM OF RULE 144A INVESTMENT
REPRESENTATION]

Description of Rule 144A Securities, including
numbers:

                                                  

                                                  

                                                  

                                                  

 

The undersigned  seller, as registered
holder (the "Seller"), intends to transfer the Rule 144A Securities
described above to the undersigned buyer (the "Buyer").

1.        
In connection with such transfer and in accordance with the
agreements pursuant to which the Rule 144A Securities were issued,
the Seller hereby certifies the following facts: Neither the Seller
nor anyone acting on its behalf has offered, transferred, pledged,
sold or otherwise disposed of the Rule 144A Securities, any
interest in the Rule 144A Securities or any other similar security
to, or solicited any offer to buy or accept a transfer, pledge or
other disposition of the Rule 144A Securities, any interest in the
Rule 144A Securities or any other similar security from, or
otherwise approached or negotiated with respect to the Rule 144A
Securities, any interest in the Rule 144A Securities or any other
similar security with, any person in any manner, or made any
general solicitation by means of general advertising or in any
other manner, or taken any other action, that would constitute a
distribution of the Rule 144A Securities under the Securities Act
of 1933, as amended (the "1933 Act"), or that would render the
disposition of the Rule 144A Securities a violation of Section 5 of
the 1933 Act or require registration pursuant thereto, and that the
Seller has not offered the Rule 144A Securities to any person other
than the Buyer or another "qualified institutional buyer" as
defined in Rule 144A under the 1933 Act.

2.        
The Buyer warrants and represents to, and covenants with, the
Seller, the Trustee, the Trust and the Master Servicer (as defined
in Section 1.01 of the Pooling and Servicing Agreement (the
"Agreement") dated as of August 1, 2004 among Washington Mutual
Mortgage Securities Corp., as Depositor and Master Servicer,
Citibank, N.A., as Trustee, and Christiana Bank & Trust
Company, as Delaware trustee) pursuant to Section 5.01(f) of the
Agreement, as follows:

a.        
The Buyer understands that the Rule 144A Securities have not been
registered under the 1933 Act or the securities laws of any
state.

b.        
The Buyer considers itself a substantial, sophisticated
institutional investor having such knowledge and experience in
financial and business matters that it is capable of evaluating the
merits and risks of investment in the Rule 144A
Securities.

c.        
The Buyer has received and reviewed the Private Placement
Memorandum dated as of August 24, 2004 relating to the Rule 144A
Securities and has been furnished with all information regarding
the Rule 144A Securities that it has requested from the Seller, the
Trustee, the Company or the Master Servicer.

d.        
Neither the Buyer nor anyone acting on its behalf has offered,
transferred, pledged, sold or otherwise disposed of the Rule 144A
Securities, any interest in the Rule 144A Securities or any other
similar security to, or solicited any offer to buy or accept a
transfer, pledge or other disposition of the Rule 144A Securities,
any interest in the Rule 144A Securities or any other similar
security from, or otherwise approached or negotiated with respect
to the Rule 144A Securities, any interest in the Rule 144A
Securities or any other similar security with, any person in any
manner, or made any general solicitation by means of general
advertising or in any other manner, or taken any other action, that
would constitute a distribution of the Rule 144A Securities under
the 1933 Act or that would render the disposition of the Rule 144A
Securities a violation of Section 5 of the 1933 Act or require
registration pursuant thereto, nor will it act, nor has it
authorized or will it authorize any person to act, in such manner
with respect to the Rule 144A Securities.

e.        
The Buyer is a "qualified institutional buyer" as that term is
defined in Rule 144A under the 1933 Act and has (1) completed
either of the forms of certification to that effect attached hereto
as Annex 1 or Annex 2, or (2) obtained the waiver of the Company
with respect to Annex 1 and Annex 2 pursuant to Section
5.01(f) of the Agreement. The Buyer is aware that the sale to it is
being made in reliance on Rule 144A. The Buyer is acquiring the
Rule 144A Securities for its own account or the accounts of other
qualified institutional buyers, understands that such Rule 144A
Securities may be resold, pledged or transferred only (i) to a
person reasonably believed to be a qualified institutional buyer
that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A,
or (ii) pursuant to another exemption from registration under the
1933 Act.

f.         
The Buyer is not affiliated with (i) the Trustee or
(ii) any Rating Agency that rated the Rule 144A
Securities.

g.        
If applicable, the Buyer has complied, and will continue to comply,
with the guidelines established by Thrift Bulletin 13a
issued April 23,
1998, by the Office of Regulatory Activities
of the Federal Home Loan Bank System.

3.        
This document may be executed in one or more counterparts and by
the different parties hereto on separate counterparts, each of
which, when so executed, shall be deemed to be an original; such
counterparts, together, shall constitute one and the same
document.

IN WITNESS WHEREOF, each of the parties has
executed this document as of the date set forth below.

 

                                                                       
           
                                                                       

                    
Print Name of
Seller                                                    
Print Name of Buyer

By:
                                                                 
           
By:
                                                                 

Name:                                                                         
Name:      

Title:
                                                                           
Title:

 

 

Taxpayer Identification:
                                   
           
Taxpayer Identification:
                                   

No.:
                                                                
           
No.:
                                                                

Date:
                                                              
           
Date:
                                                              

 

 

Annex 1 to Exhibit L

QUALIFIED INSTITUTIONAL
BUYER STATUS UNDER SEC RULE 144A

[For Buyers Other Than Registered Investment
Companies]

 

The undersigned hereby certifies as follows in
connection with the Rule 144A Investment Representation to which
this Certification is attached:

1.        
As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer
of the Buyer.

2.        
In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule
144A under the Securities Act of 1933 ("Rule 144A") because
(i) the Buyer owned and/or invested on a discretionary basis
$______________________ (the Buyer must own and/or invest on a discretionary
basis at least $100,000,000 in securities unless the Buyer is a
dealer, and, in that case, the Buyer must own and/or invest on a
discretionary basis at least $10,000,000 in securities) in
securities (except for the excluded securities referred to below)
as of the end of the Buyer's most recent fiscal year (such amount
being calculated in accordance with Rule 144A) and (ii) the
Buyer satisfies the criteria in the category marked
below.

___      Corporation,
etc.The
Buyer is a corporation (other than a bank, savings and loan
association or similar institution), Massachusetts or similar business trust,
partnership, or charitable organization described in Section
501(c)(3) of the Internal Revenue Code.

___      Bank.
The Buyer (a) is a national bank or banking institution organized
under the laws of any State, territory or the District of Columbia,
the business of which is substantially confined to banking and is
supervised by the State or territorial banking commission or
similar official or is a foreign bank or equivalent institution,
and (b) has an audited net worth of at least $25,000,000 as
demonstrated in its latest annual financial statements, a copy
of which is attached hereto.

___      Savings and
Loan. The Buyer (a) is a savings and loan association, building
and loan association, cooperative bank, homestead association or
similar institution, which is supervised and examined by a State or
Federal authority having supervision over any such institutions or
is a foreign savings and loan association or equivalent institution
and (b) has an audited net worth of at least $25,000,000 as
demonstrated in its latest annual financial statements.

___     
Broker-Dealer. The Buyer is a dealer registered pursuant to
Section 15 of the Securities Exchange Act of 1934.

___      Insurance
Company.The
Buyer is an insurance company whose primary and predominant
business activity is the writing of insurance or the reinsuring of
risks underwritten by insurance companies and which is subject to
supervision by the insurance commissioner or a similar official or
agency of a State or territory or the District of Columbia.

___      State or
Local Plan. The Buyer is a plan established and maintained by a
State, its political subdivisions, or any agency or instrumentality
of the State or its political subdivisions, for the benefit of its
employees.

 

L-1-1

___      ERISA
Plan. The Buyer is an employee benefit plan within the meaning
of Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended ("ERISA") and is subject to the fiduciary
responsibility provisions of ERISA.

___      Investment
Adviser. The Buyer is an investment adviser registered under
the Investment Advisers Act of 1940.

___      SBIC.
The Buyer is a Small Business Investment Company licensed by the
U.S. Small Business Administration under Section 301(c) or (d) of
the Small Business Investment Act of 1958.

___      Business
Development Company. The Buyer is a business development
company as defined in Section 202(a)(22) of the Investment Advisers
Act of 1940.

___      Trust
Fund. The Buyer is a trust fund whose trustee is a bank or
trust company and whose participants are exclusively (a) plans
established and maintained by a State, its political subdivisions,
or any agency or instrumentality of the State or its political
subdivisions, for the benefit of its employees, or (b) employee
benefit plans within the meaning of Title I of the Employee
Retirement Income Security Act of 1974, but is not a trust fund
that includes as participants individual retirement accounts or
H.R. 10 plans.

3.        
The term "securities" as used herein does not include
(i) securities of issuers that are affiliated with the Buyer,
(ii) securities that are part of an unsold allotment to or
subscription by the Buyer, if the Buyer is a dealer,
(iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements,
(vi) securities owned but subject to a repurchase agreement
and (vii) currency, interest rate and commodity
swaps.

4.        
For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Buyer, the
Buyer used the cost of such securities to the Buyer and did not
include any of the securities referred to in the preceding
paragraph. Further, in determining such aggregate amount, the Buyer
may have included securities owned by subsidiaries of the 
Buyer,  but only if such subsidiaries are consolidated with
the Buyer in its financial statements prepared in accordance with
generally accepted accounting principles and if the investments of
such subsidiaries are managed under the Buyer's direction. However,
such securities were not included if the Buyer is a majority-owned,
consolidated subsidiary of another enterprise and the Buyer is not
itself a reporting company under the Securities Exchange Act of
1934.

5.        
The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the
Certificates are relying and will continue to rely on the
statements made herein because one or more sales to the Buyer may
be in reliance on Rule 144A.

 

L-1-2

           
           
           
           
           
Will the Buyer be purchasing the Rule 144A

   Yes 
                 
No                       
Securities only for the Buyer's own account?

6.        
If the answer to the foregoing question is "no", the Buyer agrees
that, in connection with any purchase of securities sold to the
Buyer for the account of a third party (including any separate
account) in reliance on Rule 144A, the Buyer will only
purchase for the account of a third party that at the time is a
"qualified institutional buyer" within the meaning of
Rule 144A. In addition, the Buyer agrees that the Buyer will
not purchase securities for a third party unless the Buyer has
obtained a current representation letter from such third party or
taken other appropriate steps contemplated by Rule 144A to
conclude that such third party independently meets the definition
of "qualified institutional buyer" set forth in
Rule 144A.

7.        
The Buyer will notify each of the parties to which this
certification is made of any changes in the information and
conclusions herein. Until such notice is given, the Buyer's
purchase of Rule 144A Securities will constitute a reaffirmation of
this certification as of the date of such purchase.

 

 

 

                                                                       

                    
Print Name of Buyer

By:
                                                                 

Name:

Title:

Date:
                                                              

 

 

 

L-1-3

Annex 2 to Exhibit
L

QUALIFIED INSTITUTIONAL BUYER
STATUS UNDER SEC RULE 144A

[For Buyers That Are Registered Investment
Companies]

 

The undersigned hereby certifies as follows in
connection with the Rule 144A Investment Representation to which
this Certification is attached:

1.        
As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the
Buyer is a "qualified institutional buyer" as that term is defined
in Rule 144A under the Securities Act of 1933 ("Rule 144A") because
Buyer is part of a Family of Investment Companies (as defined
below), is such an officer of the Adviser.

2.        
In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the
Buyer is an investment company registered under the Investment
Company Act of 1940, and (ii) as marked below, the Buyer alone, or
the Buyer's Family of Investment Companies, owned at least
$100,000,000 in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal
year. For purposes of determining the amount of securities owned by
the Buyer or the Buyer's Family of Investment Companies, the cost
of such securities was used.

____    The Buyer owned
$___________________ in securities (other than the excluded
securities referred to below) as of the end of the Buyer's most
recent fiscal year (such amount being calculated in accordance with
Rule 144A).

____    The Buyer is part of a
Family of Investment Companies which owned in the aggregate
$______________ in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal
year (such amount being calculated in accordance with Rule
144A).

3.        
The term "Family of Investment Companies" as used herein
means two or more registered investment companies (or series
thereof) that have the same investment adviser or investment
advisers that are affiliated (by virtue of being majority owned
subsidiaries of the same parent or because one investment adviser
is a majority owned subsidiary of the other).

4.        
The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are
part of the Buyer's Family of Investment Companies, (ii) bank
deposit notes and certificates of deposit, (iii) loan
participations, (iv) repurchase agreements, (v) securities owned
but subject to a repurchase agreement and (vi) currency, interest
rate and commodity swaps.

5.        
The Buyer is familiar with Rule 144A and understands that each of
the parties to which this certification is made are relying and
will continue to rely on the statements made herein because one or
more sales to the Buyer will be in reliance on Rule 144A. In
addition, the Buyer will only purchase for the Buyer's own
account.

6.        
The undersigned will notify each of the parties to which this
certification is made of any changes in the information and
conclusions herein. Until such notice, the Buyer's purchase of Rule
144A Securities will constitute a reaffirmation of this
certification by the undersigned as of the date of such
purchase.

L-2-1

 

 

                                                                       

                    
Print Name of Buyer

By:
                                                                 

Name:

Title:

Date:
                                                              

 

IF AN
ADVISER:

                                                                       

                    
Print Name of Buyer

By:
                                                                 

Name:

Title:

Date:
                                                              

(SEAL)

L-2-2

Exhibit M

 

[Date]

[Company]

Re:       Pooling
and Servicing Agreement dated as of August 1, 2004 by and among
Washington Mutual Mortgage Securities Corp., as Depositor and
Master Servicer, Citibank, N.A., as Trustee, and Christiana Bank
& Trust Company, as Delaware trustee, relating to Washington
Mutual Mortgage Securities Corp. WaMu Mortgage Pass-Through
Certificates, Series 2004-CB3

Ladies and
Gentlemen:

In accordance with Section 2.07 of the
above-captioned Pooling and Servicing Agreement, the undersigned,
as [Trustee] [Initial Custodian], hereby certifies that, except as
noted on the attachment hereto, as to each Mortgage Loan listed in
the Mortgage Loan Schedule (other than any Mortgage Loan paid in
full or listed on the attachment hereto) it has reviewed the
documents delivered to it pursuant to Section 2.04 of the Pooling
and Servicing Agreement and has determined that (i) all documents
required (in the case of instruments described in clauses (X)(iv)
and (Y)(ix) of the definition of "Mortgage File," known by it to be
required) pursuant to the definition of "Mortgage File" and Section
2.05 of the Pooling and Servicing Agreement to have been executed
and received as of the date hereof are in its possession and (ii)
all such  documents have been executed and relate to the
Mortgage Loans identified in the Mortgage Loan Schedule. The
[Trustee] [Initial Custodian] has made no independent examination
of such documents beyond the review specifically required in the
above referenced Pooling and Servicing Agreement and has relied
upon the purported genuineness and due execution of any such
documents and upon the purported genuineness of any signature
thereon. The [Trustee] [Initial Custodian] makes no representations
as to: (i) the validity, legality, enforceability or genuineness of
any of the documents contained in each Mortgage File or any of the
Mortgage Loans identified on the Mortgage Loan Schedule, or (ii)
the collectability, insurability, effectiveness or suitability of
any such Mortgage Loan.

Capitalized words and phrases used herein shall
have the respective meanings assigned to them in the
above-captioned Pooling and Servicing Agreement.

                                                                        

as [Trustee] [Initial Custodian]

By:
                                                                 

Name:

Title:

Exhibit N

BENEFIT PLAN
AFFIDAVIT

Citibank, N.A., as Trustee

111 Wall Street, 14th Floor, Zone 3

New York, New York 10005

Attn:  Structured
Finance Group, Washington Mutual
2004-CB3

Washington Mutual Mortgage
Securities Corp. ("Washington Mutual")

75 North Fairway Drive

Vernon Hills, IL  60061

 

RE:       CLASS
[B-4] [B-5] [B-6] CERTIFICATES (THE "PURCHASED CERTIFICATES")
ISSUED BY WaMu MORTGAGE PASS-THROUGH

CERTIFICATES SERIES 2004-CB3 TRUST (THE
"TRUST")

Under penalties of perjury, I,
_____________________, declare that, to the best of my knowledge
and belief, the following representations are true, correct and
complete; and

1.        
That I am the _______________ of __________________ (the
"Purchaser"), whose taxpayer identification number is 
___________, and on behalf of which I have the authority to make
this affidavit.

2.        
That the Purchaser is acquiring a Purchased Certificate
representing an interest in the assets of the Trust.

3.        
That the Purchaser satisfies the condition in the paragraph marked
below [mark one paragraph only]:

___      The Purchaser
is not an employee benefit plan or other plan subject to the
prohibited transaction provisions of the Employee Retirement Income
Security Act of 1974, as amended, or Section 4975 of the Internal
Revenue Code of 1986, as amended (a "Plan"), or any other person
(including an investment manager, a named fiduciary or a trustee of
any Plan) acting, directly or indirectly, on behalf of, or
purchasing any of the Purchased Certificates with "plan assets" of,
any Plan within the meaning of the Department of Labor ("DOL")
regulation at 29 C.F.R. Section 2510.3-101.

___      The Purchaser
is an insurance company, the source of funds to be used by it to
acquire or hold the Purchased Certificate is an "insurance company
general account" (within the meaning of DOL Prohibited Transaction
Class Exemption ("PTCE") 95-60), and the conditions in Sections I
and III of PTCE 95-60 have been satisfied.

___      The Purchaser
has delivered to Washington Mutual and the Trustee a Benefit Plan
Opinion (as defined in Section 1.01 of the Pooling and Servicing
Agreement, dated as of August 1, 2004, by and among
Washington Mutual, the Trustee and the Delaware Trustee thereunder,
and relating to the Trust).

N-1

 

IN WITNESS WHEREOF, the Purchaser has caused this instrument to be
duly executed on its behalf, by its duly authorized officer this
_____ day of __________________, 20__.

[Purchaser]

By:
                                                     

      Its:

 

N-2

Personally appeared before me ______________________, known or
proved to me to be the same person who executed the foregoing
instrument and to be a ________________ of the Purchaser, and
acknowledged to me that (s)he executed the same as his/her free act
and deed and as the free act and deed of the Purchaser.

SUBSCRIBED and SWORN to before me this day of
____________, 20__.

                                                                                   

           
Notary Public

 

N-3

Exhibit O

BENEFIT PLAN
AFFIDAVIT

Citibank, N.A., as Trustee

111 Wall Street, 14th Floor, Zone 3

New York, New York 10005

Attn:  Structured
Finance Group, Washington Mutual
2004-CB3

Washington Mutual Mortgage
Securities Corp. ("Washington Mutual")

75 North Fairway Drive

Vernon Hills, IL  60061

 

RE:       CLASS
[B-1] [B-2] [B-3] CERTIFICATES (THE "PURCHASED CERTIFICATES")
ISSUED BY WaMu MORTGAGE PASS-THROUGH

CERTIFICATES SERIES 2004-CB3 TRUST (THE
"TRUST")

Under penalties of perjury, I,
_____________________, declare that, to the best of my knowledge
and belief, the following representations are true, correct and
complete; and

1.        
That I am the _______________ of __________________ (the
"Purchaser"), whose taxpayer identification number is 
___________, and on behalf of which I have the authority to make
this affidavit.

2.        
That the Purchaser is acquiring a Purchased Certificate
representing an interest in the assets of the Trust.

3.        
That the Purchaser satisfies the condition in the paragraph marked
below [mark one paragraph only]:

___      The
Purchaser is not an employee benefit or other plan subject to the
prohibited transaction provisions of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), or Section 4975 of the
Internal Revenue Code of 1986, as amended (a "Plan"), or any other
person (including an investment manager, a named fiduciary or a
trustee of any such Plan) acting, directly or indirectly, on behalf
of or purchasing the Purchased Certificate with "plan assets" of,
any Plan within the meaning of the Department of Labor ("DOL")
regulation at 29 C.F.R. Section 2510.3-101.

___      The Purchaser
is an insurance company, the source of funds to be used by it to
acquire or hold the Purchased Certificate is an "insurance company
general account" (within the meaning of DOL Prohibited Transaction
Class Exemption ("PTCE") 95-60), and the conditions in Sections I
and III of PTCE 95-60 have been satisfied.

___      The Purchased
Certificate was rated "BBB-" or better (or its equivalent) by at
least one of the Rating Agencies (as defined in Section 1.01 of the
Pooling and Servicing Agreement (the "the Pooling and Servicing
Agreement"), dated as of August 1, 2004, by and among Washington
Mutual, the Trustee and the Delaware Trustee thereunder, and
relating to the Trust) at the time of Purchaser’s acquisition
of the Purchased Certificate (or interest therein).

1

               ___      The Purchaser
has delivered to Washington Mutual and the Trustee a Benefit Plan
Opinion (as defined in Section 1.01 of the Pooling and Servicing
Agreement).

IN WITNESS WHEREOF, the Purchaser has caused this instrument to be
duly executed on its behalf, by its duly authorized officer this
_____ day of __________________, 20__.

[Purchaser]

By:
                                                     

      Its:

2

Personally appeared before me ______________________, known or
proved to me to be the same person who executed the foregoing
instrument and to be a ________________ of the Purchaser, and
acknowledged to me that (s)he executed the same as his/her free act
and deed and as the free act and deed of the Purchaser.

SUBSCRIBED and SWORN to before me this day of
____________, 20__.

                                                                                   

           
Notary Public

 

3

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