Document:

EXHIBIT 10.18.1

                                BARCLAYS BANK PLC
                                 200 PARK AVENUE
                            NEW YORK, NEW YORK 10166

                                                                  March 10, 2006

American Home Mortgage Acceptance, Inc.
538 Broadhollow Road
Melville, New York  11747

            Re:   Transactions for Mortgage Loans
                  -------------------------------

Ladies and Gentlemen:

            Reference is made to the Master Repurchase Agreement, dated as of
March 10, 2006 (the "Master Repurchase Agreement"), by and among BARCLAYS BANK
PLC ("Buyer") and AMERICAN HOME MORTGAGE ACCEPTANCE, INC. ("Seller").
Capitalized terms used herein but not defined herein shall have the meanings
given in the Master Repurchase Agreement.

            This letter agreement (the "Letter Agreement") sets forth the terms
and conditions on which the Buyer may enter into Transactions with the Seller
with respect to the whole mortgage loans referenced on Schedule A attached
hereto (the "Mortgage Loans"). This Letter Agreement shall be deemed to
constitute a part of, and be read together with, the Master Repurchase
Agreement. In the event of any inconsistency between the Master Repurchase
Agreement and this Letter Agreement, this Letter Agreement shall prevail. This
Letter Agreement shall be governed by and construed in accordance with the laws
of the State of New York, without regard to its conflicts of laws principles.

            In consideration of the willingness of the Buyer to enter into
Transactions for the Mortgage Loans, from time to time, the Seller and the Buyer
agree as follows:

      1. Mortgage Loans. For all purposes of the Master Repurchase Agreement,
all references to Securities and Purchased Securities shall be deemed to include
the Mortgage Loans. This Letter Agreement shall apply to any Transaction for
Purchased Securities where the Purchased Securities are the Mortgage Loans,
without the requirement of any further action or notice being taken by the Buyer
or the Seller. The parties hereto acknowledge and agree that the Repurchase Date
for any Transaction for Mortgage Loans shall not extend beyond May 10, 2006. The
Seller expressly acknowledges and agrees that the Buyer shall not have any
obligation to make any future advances under the Mortgage Loans and any
requirements under the Mortgage Loans to disburse additional proceeds shall be
satisfied solely and exclusively by the Seller.

      2. Definitions.

      (a) The following definitions in Section 2 of the Master Repurchase
Agreement are hereby deleted in their entirety and replaced with the language
set forth below solely for purposes of any Transaction for the Mortgage Loans:

<PAGE>

            "Buyer's Margin Percentage", 102.00%;

            "Market Value", the price at which such Mortgage Loan could readily
            be sold as determined by Buyer in its good faith discretion,
            provided that Market Value shall be deemed zero for any Mortgage
            Loan with respect to which there is a breach of a representation or
            warranty made by Seller in the Letter Agreement;

            "Pricing Rate", the per annum percentage rate for determination of
            the Price Differential, which shall equal (a) on the date hereof
            until and including April 10, 2006, LIBOR plus 0.40%, (b) on and
            after April 11, 2006, LIBOR plus 1.25% and (c) after the occurrence
            and during the continuance of an Event of Default on the part of
            Seller, LIBOR plus 6.00%;

      (b) The following definitions are hereby added to Section 2 of the Master
Repurchase Agreement for purposes of any Transaction for the Mortgage Loans:

            "Affiliate" means, with respect to any Person, another Person that
            directly or indirectly controls, or is under common control with, or
            is controlled by, such Person. As used in this definition, "control"
            (including its correlative meanings, "controlled by" and "under
            common control with") means possession, directly or indirectly, of
            power to direct or cause the direction of management or policies
            (whether through ownership of securities or partnership or other
            ownership interests, by contract or otherwise).

            "Capital Lease", as applied to any Person or entity, shall mean any
            lease of any property (whether real, personal or mixed) by that
            Person or entity as lessee that, in conformity with GAAP, is
            accounted for as a capital lease on the balance sheet of that Person
            or entity.

            "Custodial Agreement" means that custodial agreement, dated as of
            the date hereof and as further amended, modified or supplemented
            from time to time, by and among Buyer, Seller and Custodian.

            "Custodian" means the custodian under the Custodial Agreement. The
            initial custodian is Deutsche Bank National Trust Company.

            "GAAP" means with respect to the financial statements or other
            financial information of any Person, generally accepted accounting
            principles in the United States that are in effect from time to
            time.

            "Guaranty" means that certain Guaranty made by the Guarantor in
            favor of the Buyer, dated as of the date hereof, as the same may be
            amended from time to time, which shall be substantially in the form
            of Schedule C hereof.

            "Guarantor"  means American Home Mortgage Investment Corp., or
            any successors in interest or assigns.

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<PAGE>

            "Electronic Tracking Agreement" means an Electronic Tracking
            Agreement, dated as of the date hereof, among Buyer, Seller,
            Mortgage Electronic Registration Systems, Inc. and MERSCORP,
            Inc., as the same may be amended from time to time.

            "Indebtedness" means, for any Person: (a) obligations created,
            issued or incurred by such Person for borrowed money (whether by
            loan, the issuance and sale of debt securities or the sale of
            property to another Person subject to an understanding or agreement,
            contingent or otherwise, to repurchase such property from such
            Person); (b) obligations of such Person to pay the deferred purchase
            or acquisition price of property or services, other than trade
            accounts payable (other than for borrowed money) arising, and
            accrued expenses incurred, in the ordinary course of business so
            long as such trade accounts payable are payable within ninety (90)
            days of the date the respective goods are delivered or the
            respective services are rendered; (c) Indebtedness of others secured
            by a lien on the property of such Person, whether or not the
            respective indebtedness so secured has been assumed by such Person;
            (d) obligations of such Person in respect of letters of credit or
            similar instruments issued or accepted by banks and other financial
            institutions for account of such Person; (e) Capital Leases of such
            Person; and (f) any of the foregoing types of indebtedness of others
            guaranteed by such Person (without duplication).

            "LIBOR" means the rate per annum calculated two (2) Business Days
            prior to each Repurchase Date determined by Buyer on the basis of
            the offered rate for one month deposits of not less than U.S.
            $1,000,000, that appears on the date of determination on Dow Jones
            Market Service Page 3750 as of 11:00 a.m., London time (or such
            other page as may replace the Dow Jones Market Service Page on that
            service for the purposes of displaying London interbank offered
            rates of major banks). All percentages resulting from any
            calculations of LIBOR referred to in this Letter Agreement shall be
            rounded up to the nearest multiple of 1/100 of 1% and all U.S.
            Dollar amounts used in or resulting from such calculations shall be
            rounded to the next higher cent.

            "Lien" means any lien, claim, charge, restriction, pledge, security
            interest, mortgage, deed of trust or other encumbrance.

            "Material Adverse Effect" means a material adverse effect on (a) the
            business, assets, property or condition (financial or otherwise) of
            Seller, or (b) the validity or enforceability of (i) the Master
            Repurchase Agreement (or any material provision thereof) or (ii) the
            rights, remedies or interests of Buyer hereunder or thereunder.

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

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<PAGE>

            "MERS(R) System" means MERSCORP, INC's mortgage electronic registry
            system, as more particularly described in the MERS Procedures
            Manual.

            "Mortgage" means a mortgage, deed of trust, deed to secure debt or
            other instrument, creating a valid, enforceable first lien on, or a
            first priority ownership interest in an estate in fee simple in,
            real property and the improvements thereon, securing a mortgage note
            or similar evidence of indebtedness.

            "Mortgage Note" means a note or other evidence of indebtedness of a
            Mortgagor secured by a Mortgage.

            "Mortgaged Property" means the real property securing repayment of
            the debt evidenced by a Mortgage Note.

            "Person" means an individual, partnership, limited liability
            company, corporation, joint stock company, trust or unincorporated
            organization or a governmental agency or political subdivision
            thereof.

            "Price Differential Payment Date" means the seventh business day of
            each calendar month.

            "Program Documents" means the Master Repurchase Agreement, this
            Letter Agreement, the Guaranty, the Custodial Agreement and the
            Electronic Tracking Agreement.

            "Subsidiary" means, as to any Person, a corporation, partnership or
            other entity of which shares of stock or other ownership interests
            having ordinary voting power (other than stock or such other
            ownership interests having such power only by reason of the
            happening of a contingency) to elect a majority of the board of
            directors or other managers of such corporation, partnership or
            other entity are at the time owned, or the management of which is
            otherwise controlled, directly or indirectly through one or more
            intermediaries, or both, by such Person. Unless otherwise qualified,
            all references to a "Subsidiary" or to "Subsidiaries" in this
            Agreement shall refer to a Subsidiary or Subsidiaries of Seller.

            "Uniform Commercial Code" means the Uniform Commercial Code as in
            effect on the date in effect from time to time in the State of New
            York; provided, that if by reason of mandatory provisions of law,
            the perfection or the effect of perfection or non-perfection of the
            security interest in any Collateral is governed by the Uniform
            Commercial Code as in effect in a jurisdiction other than New York,
            "Uniform Commercial Code" shall mean the Uniform Commercial Code as
            in effect in such other jurisdiction for purposes of the provisions
            hereof relating to such perfection or effect of perfection or
            non-perfection.

      (c) The following definitions in Section 2 of the Master Repurchase
Agreement are hereby deleted for purposes of any Transaction for the Mortgage
Loans: "Margin Excess", "Seller's Margin Amount" and "Seller's Margin
Percentage".

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<PAGE>

      3. Margin Excess. Section 4(b) of the Master Repurchase Agreement (and all
references to Section 4(b) in any other Section of the Master Repurchase
Agreement) are hereby deleted in their entirety.

      4. Purchase Price; Maximum Purchase Price. The Purchase Price with respect
to any Transaction for the Mortgage Loans shall be equal to, with respect to
each Mortgage Loan, 98% of the lesser of (a) the Market Value of such Mortgage
Loan and (b) the outstanding principal balance of such Mortgage Loan, provided
that the maximum Purchase Price with respect to all Transactions for the
Mortgage Loans shall not exceed $1,000,000,000.

      5. Security Interest. Solely for purposes of any Transaction for the
Mortgage Loans, Section 6 of the Master Repurchase Agreement is hereby deleted
in its entirety and replaced with the following:

      (a) Buyer and Seller intend that the Transactions hereunder be sales to
Buyer of the Mortgage Loans and not loans from Buyer to Seller secured by the
Mortgage Loans. However, in order to preserve Buyer's rights under the Master
Repurchase Agreement in the event that a court or other forum recharacterizes
the Transactions hereunder as loans, and as security for the performance by
Seller of all of Seller's obligations to Buyer under, the Master Repurchase
Agreement and the Transactions entered into pursuant to the Master Repurchase
Agreement, Seller grants to Buyer a security interest in the Mortgage Loans, the
Program Documents (to the extent such Program Documents and the Seller's right
thereunder relate to the Mortgage Loans), servicing records, purchase
commitments, insurance and guarantees relating to the Mortgage Loans, Mortgage
Notes, Mortgages, income, any and all hedges, any and all servicing agreements
and any collection accounts and escrow accounts relating to the Mortgage Loans
and all cash or other property or amounts on deposit therein and any other
general intangibles, instruments, supporting obligations, and other assets
relating to the Mortgage Loans or any interest in the Mortgage Loans and the
servicing of the Mortgage Loans and any and all replacements or substitutions
for, distributions on or proceeds of any and all of the foregoing, in all
instances, whether now owned or hereafter acquired, now existing or hereafter
created (collectively, and together with any other property or interests in
which Seller grants a security interest to Buyer, the "Collateral").

      (b) Seller shall pay all fees and expenses associated with perfecting and
maintaining Buyer's security interest (and ownership interest) in the Collateral
(including the cost of filing financing statements under the Uniform Commercial
Code and recording assignments of Mortgage, as and when required by Buyer in its
discretion). Seller shall take such further actions as are necessary in order to
perfect Buyer's first priority security interest in any hedges.

      6. Payment, Transfer and Custody. Solely for purposes of any Transaction
involving Mortgage Loans, Section 7 of the Master Repurchase Agreement is hereby
deleted in its entirety and replaced with the following:

      (a) On the Purchase Date for each Transaction, ownership of the Mortgage
Loans shall be transferred to Buyer or its designee (including Custodian)
against the simultaneous transfer of the Purchase Price to an account of Seller
specified in the Confirmation. Seller, simultaneously with the delivery to Buyer
or its designee (including Custodian) of the Mortgage

                                       5
<PAGE>

Loans relating to each Transaction, hereby sells, transfers, conveys and assigns
to Buyer or its designee (including Custodian) without recourse, but subject to
the terms of the Master Repurchase Agreement, all the right, title and interest
of Seller in and to the Mortgage Loans together with all right, title and
interest in and to the proceeds of any related insurance policies.

      (b) In connection with each sale, transfer, conveyance and assignment, on
or prior to each Purchase Date with respect to each Mortgage Loan, Seller shall
deliver or cause to be delivered and released to Custodian the following
original documents (collectively the "Mortgage File"), pertaining to each of the
Mortgage Loans delivered therewith:

                  (i) the original Mortgage Note bearing all intervening
            endorsements (or allonges), endorsed "Pay to the order of
            ___________, without recourse" and signed in the name of the last
            endorsee (the "Last Endorsee") by an authorized officer (in the
            event that the Mortgage Loan was acquired by the Last Endorsee in a
            merger, the signature must be in the following form: "[the Last
            Endorsee], successor by merger to [name of predecessor]"; in the
            event that the Mortgage Loan was acquired or originated while doing
            business under another name, the signature must be in the following
            form: "[the Last Endorsee], formerly known as [previous name]");

                  (ii) the original of any guarantee executed in connection with
            the Mortgage Note (if any);

                  (iii) the original Mortgage with evidence of recording thereon
            or a copy certified by Seller, its agent or the title company on
            behalf of Seller that have been sent for recording;

                  (iv) the originals of all assumption, modification,
            consolidation or extension agreements, with evidence of recording
            thereon or copies certified by Seller, its agent or the title
            company on behalf of Seller to have been sent for recording, if any;

                  (v) Except with respect to Mortgage Loans registered on MERS,
            the original assignment of Mortgage in blank for each Mortgage Loan,
            in form and substance acceptable for recording and signed in the
            name of the last endorsee thereof (in the event that the Mortgage
            Loan was acquired by the last endorsee in a merger, the signature
            must be in the following form: "[the last endorsee], successor by
            merger to [name of predecessor]"; in the event that the Mortgage
            Loan was acquired or originated while doing business under another
            name, the signature must be in the following form: "[the last
            endorsee], formerly known as [previous name]");

                  (vi) the originals of all intervening assignments of mortgage
            with evidence of recording thereon or copies certified by Seller to
            have been sent for recording (intervening assignments shall not be
            required for any Mortgage that has been originated in the name of
            MERS and registered under the MERS System), if any;

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<PAGE>

                  (vii) the original of any security agreement, chattel mortgage
            or equivalent document executed in connection with the Mortgage (if
            any); and

                  (viii) the original mortgagee policy of title insurance, to
            the extent delivered; and

                  (ix) the original power of attorney, if any, or a copy thereof
            certified by Seller to have been sent for recording, for any
            document described above.

      (c) Buyer shall deposit the Mortgage Files representing the Mortgage
Loans, or direct that the Mortgage Files be deposited directly, with Custodian.
The Mortgage Files shall be maintained in accordance with the Custodial
Agreement.

      (d) Any Mortgage Files not delivered to Buyer or its designee (including
Custodian) are and shall be held in trust by Seller or its designee for the
benefit of Buyer as the owner thereof. Seller or its designee shall maintain a
copy of the Mortgage File and the originals of the Mortgage File not delivered
to Buyer or its designee. The possession of the Mortgage File by Seller or its
designee is at the will of Buyer for the sole purpose of servicing the related
Mortgage Loan, and such retention and possession by Seller or its designee is in
a custodial capacity only. The books and records (including any computer records
or tapes) of Seller or its designee shall be marked appropriately to reflect
clearly the sale of the related Mortgage Loan to Buyer. Seller or its designee
(including Custodian) shall release its custody of the Mortgage File only in
accordance with written instructions from Buyer, unless such release is required
as incidental to the servicing of the Mortgage Loans or is in connection with a
repurchase of any Mortgage Loan by Seller.

      7. Representations and Warranties. In addition to the representations and
warranties set forth in Section 10 of the Master Repurchase Agreement, but
solely for purposes of any Transaction for the Mortgage Loans pursuant to this
Letter Agreement, the following shall apply:

      (a) Seller represents and warrants to Buyer that as of the Purchase Date
for the purchase of any Mortgage Loans by Buyer from Seller and as of the date
of this Letter Agreement and any Transaction hereunder and at all times while
this Letter Agreement and any Transaction for Mortgage Loans hereunder is in
full force and effect:

                  (i) Organization. Seller is duly organized, validly existing
            and in good standing under the laws of the State of Maryland and is
            duly licensed, qualified, and in good standing in every state where
            Seller transacts business and in any state where any Mortgaged
            Property is located if the laws of such state require licensing or
            qualification in order to conduct business of the type conducted by
            Seller, as the case may be, therein, except where the failure to be
            so licensed, qualified, and in good standing would not result in a
            Material Adverse Effect.

                  (ii) No Litigation. There is no action, suit, proceeding,
            arbitration or investigation pending or, to Seller's knowledge,
            threatened against Seller which, either in any one instance or in
            the aggregate, is likely to result in any Material Adverse Effect.

                                       7
<PAGE>

                  (iii) No Broker. Seller has not dealt with any broker,
            investment banker, agent, or other person, except for Buyer, who may
            be entitled to any commission or compensation in connection with the
            sale of Mortgage Loans pursuant to the Master Repurchase Agreement.

                  (iv) Good Title to Collateral. The Mortgage Loans shall be
            free and clear of any lien, encumbrance or impediment to transfer,
            and Seller has good, valid and marketable title and the right to
            sell and transfer such Mortgage Loans to Buyer free and clear of all
            liens.

                  (v) Delivery of Mortgage File. With respect to each Mortgage
            Loan, the Mortgage Note, the Mortgage, the assignment of Mortgage
            and any other documents required to be delivered under this Letter
            Agreement and the Custodial Agreement for the Mortgage Loans have
            been or will be delivered to Custodian. Seller or its designee is in
            possession of a complete, true and accurate Mortgage File with
            respect to the Mortgage Loans, except for such documents that have
            been delivered to Custodian.

                  (vi) Selection Process. The Purchased Mortgage Loans were
            selected from among the outstanding mortgage loans in Seller's
            portfolio as to which the representations and warranties set forth
            in this Letter Agreement could be made and such selection was not
            made in a manner so as to affect adversely the interests of Buyer.

                  (vii) No Untrue Statements. Neither this Letter Agreement nor
            any written statement made, or any report or other document issued
            or delivered or to be issued or delivered by or on behalf of Seller,
            pursuant to this Letter Agreement or in connection with the
            transactions contemplated hereby contains any untrue statement of a
            material fact or omits to state a material fact necessary to make
            the statements contained herein not misleading.

                  (viii) Origination Practices. The origination practices used
            by Seller with respect to each Mortgage Loan (A) have been and are
            in all respects legal and proper in the mortgage origination
            business and (B) are in accordance with the underwriting guidelines
            previously supplied by Seller to Buyer.

                  (ix) Performance of Agreement. Seller does not believe, nor
            does it have any reason or cause to believe, that it cannot perform
            each and every covenant contained in the Master Repurchase Agreement
            on its part to be performed.

                  (x) Seller Not Insolvent. Seller is not, and with the passage
            of time does not expect to become, insolvent.

                  (xi) No Event of Default. No default or Event of Default has
            occurred and is continuing hereunder.

                  (xii) Financial Condition.

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<PAGE>

                        (A) The consolidated balance sheet of American Home
                  Mortgage Investment Corp. and its respective consolidated
                  Subsidiaries, as at September 30, 2005, and the related
                  consolidated statements of income and of cash flows for the
                  quarter ended on such date, copies of which have heretofore
                  been furnished to Buyer, are complete and correct and present
                  fairly in accordance with GAAP the consolidated or
                  consolidating financial condition of each such Person and its
                  Subsidiaries as at such dates, and the results of their
                  operations and their cash flows for the quarter then ended.

                        (B) All such financial statements, including the related
                  schedules and notes thereto, have been prepared in accordance
                  with GAAP applied consistently throughout the periods
                  involved.

                        (C) Neither American Home Mortgage Investment Corp. nor
                  any of its Subsidiaries had, at the date of the most recent
                  financial statements referred to above, any material guarantee
                  obligation, contingent liability or liability for taxes, or
                  any long-term lease or unusual forward or long-term commitment
                  (including any interest rate or foreign currency swap or
                  exchange transaction, or other financial derivative), that is
                  not reflected in the foregoing statements or in the notes
                  thereto.

                  (xiii) No Change. Since September 30, 2005, there has been no
            development or event, nor any prospective development or event,
            which has had or is reasonably expected to have a Material Adverse
            Effect.

                  (xiv) Corporate Power; Compliance with Law. Seller (a) has the
            corporate power and authority, and the legal right, to own and
            operate its property, to lease the property it operates as lessee,
            to carry on its business as now being or as proposed to be
            conducted, to originate, acquire and own Mortgage Loans, to sell and
            repurchase such Mortgage Loans pursuant to this Agreement, and to
            make, deliver and perform the Master Repurchase Agreement, and (b)
            is in compliance in all material respects with all legal
            requirements (including environmental law and the Real Estate
            Settlement Procedures Act, the Home Ownership and Equity Protection
            Act and related state law).

                  (xv) Enforceability. This Agreement has been duly and validly
            executed and delivered by Seller and constitutes a legal, valid and
            binding obligation of Seller, enforceable against Seller in
            accordance with its terms, except as enforceability may be limited
            by applicable bankruptcy, insolvency, reorganization, moratorium or
            similar laws affecting the enforcement of creditors' rights
            generally and by general equitable principles (whether enforcement
            is sought by proceedings in equity or at law).

                  (xvi) Collateral; Collateral Security.

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<PAGE>

                        (A) If the Transactions are recharacterized as secured
                  financings, the provisions of this Agreement are effective to
                  create in favor of Buyer a valid security interest in all
                  right, title and interest of Seller in, to and under the
                  Collateral.

                        (B) Upon receipt by Custodian of each Mortgage Note,
                  endorsed in blank by a duly authorized officer of Seller,
                  Buyer shall have a fully perfected first priority security
                  interest therein, in the Mortgage Loan evidenced thereby, and
                  Seller's interest in the related Mortgaged Property.

                        (C) Financing Statements on Form UCC-1 having been filed
                  naming Buyer as "Secured Party" and Seller as "Debtor", and
                  describing the Collateral, the security interests granted
                  hereunder in the Collateral (other than Mortgage Notes) will
                  constitute fully perfected first priority security interests
                  under the Uniform Commercial Code in all right, title and
                  interest of Seller in, to and under such Collateral, which can
                  be perfected by filing under the Uniform Commercial Code.

                  (xvii) Taxes. Seller has filed all Federal income tax returns
            and all other material tax returns that are required to be filed by
            it and has paid all taxes due pursuant to such returns or pursuant
            to any claims or assessment received by it, except for any such
            taxes or assessments, if any, that are being appropriately contested
            in good faith by appropriate proceedings diligently conducted and
            with respect to which adequate reserves in conformity with GAAP have
            been established. No tax lien has been filed against Seller.

                  (xviii) Investment Company Act; Other Regulations. Seller 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.

                  (xix) Subsidiaries. Seller has provided to Buyer a true,
            complete and correct schedule of all of its Subsidiaries in
            existence as of the date hereof.

      (b) Seller represents and warrants to Buyer that each Mortgage Loan sold
hereunder and each pool of Mortgage Loans sold in a Transaction hereunder, as of
the related Purchase Date, conforms in all material respects to the
representations and warranties set forth in Schedule B attached hereto. It is
understood and agreed that the representations and warranties set forth in
Schedule B hereto, if any, shall survive delivery of the respective Mortgage
File to Buyer or its designee (including Custodian).

      (c) On the Purchase Date for any Transaction, Seller shall be deemed to
have made all the foregoing representations as of such Purchase Date.

      8. Events of Default. In addition to the Events of Default set forth in
Section 11 of the Master Repurchase Agreement, but solely for purposes of any
Transaction for the Mortgage Loans pursuant to this Letter Agreement, the
following shall be deemed Events of Default on the part of Seller for all
purposes of the Master Repurchase Agreement:

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<PAGE>

                  (i) any governmental, regulatory, or self-regulatory authority
            takes any action to remove, limit, restrict, suspend or terminate
            the rights, privileges, or operations of Seller or any of its
            Affiliates, including suspension as an issuer, lender or
            seller/servicer of mortgage loans, which action results in a
            Material Adverse Effect, and which continues for more than 24 hours;

                  (ii) Seller dissolves, merges or consolidates with another
            entity (unless (A) it is the surviving party or (B) the entity into
            which it merges has equity and a market value of at least that of
            Seller immediately prior to such merger and such entity expressly
            assumes its obligations under the Master Repurchase Agreement), or
            Seller or Guarantor sells, transfers, or otherwise disposes of a
            material portion of its business or assets, except for the sale or
            transfer of Mortgage Loans in the ordinary course of business;;

                  (iii) Buyer, in its reasonable good faith judgment, believes
            that there has been a material adverse change in the business,
            operations, corporate structure or financial condition of Seller or
            Guarantor or that Seller or Guarantor will not meet any of its
            obligations under the Master Repurchase Agreement or any other
            agreement between the parties;

                  (iv) Guarantor or any of its Subsidiaries shall fail to
            perform or shall violate the Master Repurchase Agreement or any
            other agreement or instrument between any of them and Buyer or any
            of its Affiliates and such failure or violation continues unremedied
            after any applicable grace period therefor, or Guarantor or any of
            Guarantor 's Subsidiaries shall fail to pay when due or within any
            applicable grace period therefor any portion of any single
            obligation constituting Indebtedness of Guarantor or any of
            Guarantor's Subsidiaries in excess of $2,500,000; or any default or
            other event shall occur under or with respect to any agreement under
            which any single obligation constituting Indebtedness of Guarantor
            or any of Guarantor's Subsidiaries in excess of $2,500,000 was
            created or is governed, the effect of which is to cause, or to
            permit the holder or holder of such indebtedness to cause, such
            indebtedness to become due prior to its stated maturity; or any
            single obligation constituting indebtedness of Guarantor or any of
            Guarantor's Subsidiaries in excess of $2,500,000 shall be declared
            to be due and payable, or required to be prepaid (other than by a
            regularly scheduled payment), prior to the stated maturity thereof;

                  (v) A final judgment by any competent court in the United
            States of America for the payment of money in an amount of at least
            $2,500,000 is rendered against Seller or Guarantor, and the same
            remains undischarged or unpaid for a period of thirty (30) days
            during which execution of such judgment is not effectively stayed;

                  (vi) The Master Repurchase Agreement shall for any reason
            cease to create a valid, first priority security interest in any of
            the Mortgage Loans purported to be covered hereby;

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<PAGE>

                  (vii) any Person or entity or any group (within the meaning of
            Section 13(d)(3) of the Securities Exchange Act of 1934, as amended)
            of Persons and/or entities, shall have acquired beneficial ownership
            (within the meaning of Rule 13d-3 of the Securities and Exchange
            Commission under the Securities Exchange Act of 1934, as amended),
            directly or indirectly, in one or more transactions, of securities
            of Seller or Guarantor (or other securities convertible into such
            securities) representing more than 50% of the combined voting power
            of all securities of such entity entitled to vote in the election of
            directors (other than the Person or entities owning such securities
            on the date of this Letter Agreement or any other Affiliate of
            Seller); or

                  (viii) Guarantor revokes its status as a REIT or ceases to
            qualify as a REIT or Seller ceases to qualify as a qualified REIT
            subsidiary as defined in Section 856 of the Internal Revenue Code;
            or

                  (ix) any of the events set forth in Section 11 of the Master
            Repurchase Agreement and defined as "Events of Default" shall apply
            to the Guarantor.

      9. Remedies. In Section 11(d)(i) of the Master Repurchase Agreement, the
phrase in the eighth through tenth lines which reads "the price therefor on such
date, obtained from a generally recognized source or the most recent closing bid
quotation from such a source," is hereby deleted in its entirety with respect to
any Transaction for Mortgage Loans and replaced with the following: "the Market
Value of the Mortgage Loans". In addition to the foregoing, Buyer may enforce
its rights and remedies hereunder without prior judicial process or hearing.
Seller also waives any defense (other than a defense of payment or performance)
Seller might otherwise have arising from the use of nonjudicial process,
enforcement and sale of all or any portion of the Collateral, or from any other
election of remedies, and upon the occurrence of one or more Events of Default,
the Buyer shall have the right to obtain physical possession of all files of the
Seller relating to the Mortgage Loans and all documents relating to the Mortgage
Loans which are then or may thereafter come in to the possession of the Seller
or any third party acting for the Seller. The Buyer shall be entitled to
specific performance of all agreements of the Seller contained in the Master
Repurchase Agreement.

      10. Guaranty. On the date hereof, American Home Mortgage Investment Corp.
(in such capacity, the "Guarantor") shall deliver to the Buyer the Guaranty of
the full and timely payment of the Repurchase Price with respect to any
Transaction for the Mortgage Loans.

      11. Indemnification. Seller agrees to hold Buyer harmless from and
indemnify Buyer (and its directors, officers, employees and agents) against all
liabilities, losses, damages, judgments, reasonably incurred out-of-pocket costs
and expenses of any kind that may be imposed on, incurred by or asserted against
Buyer (collectively, the "Costs") relating to or arising out of the Transactions
for Mortgage Loans or the Master Repurchase Agreement, including reasonable
legal costs and settlement costs, except if a court of competent jurisdiction
determines by final and nonappealable judgment that such losses, liabilities,
claims, damages or expenses result from the gross negligence or willful
misconduct of the indemnified party ("Excluded Causes"). Without limiting the
generality of the foregoing, Seller agrees to hold

                                       12
<PAGE>

Buyer harmless from and indemnify Buyer against all Costs with respect to all
Mortgage Loans relating to or arising out of any violation or alleged violation
of any environmental law, rule or regulation or any consumer credit laws,
including ERISA, the Truth in Lending Act, the Home Ownership and Equity
Protection Act and/or the Real Estate Settlement Procedures Act, that, in each
case, results from anything other than Excluded Causes. In any suit, proceeding
or action brought by Buyer in connection with any Mortgage Loan for any sum
owing thereunder, or to enforce any provisions of any Mortgage Loan, Seller will
save, indemnify and hold Buyer harmless from and against all expense, loss or
damage suffered by reason of any defense, set-off, counterclaim, recoupment or
reduction or liability whatsoever of the account debtor or obligor thereunder or
arising out of any other agreement, indebtedness or liability at any time owing
to or in favor of such account debtor or obligor or its successors from Seller.
Seller also agrees to reimburse Buyer as and when billed by Buyer for all
Buyer's ongoing due diligence and auditing expenses and costs and expenses
incurred in connection with the enforcement or the preservation of Buyer's
rights under the Master Repurchase Agreement or any Transaction for Mortgage
Loans contemplated hereby, including the reasonable fees and disbursements of
its counsel and other third party agents. Seller hereby acknowledges that the
obligation of Seller hereunder is a recourse obligation of Seller.

      12. Expenses. Seller shall be responsible for (a) all reasonable
out-of-pocket costs and expenses incurred by Buyer in connection with the
preparation, execution, delivery and administration of this Letter Agreement and
the Master Repurchase Agreement and any amendment or waiver with respect thereto
(including reasonable fees and disbursements and other charges of counsel), (b)
all out-of-pocket costs and expenses incurred by Buyer in connection with the
enforcement of this Letter Agreement and the Master Repurchase Agreement
(including the fees and disbursements and other reasonable charges of counsel)
and (c) ongoing due diligence and auditing expenses of Buyer (including
reasonable fees and disbursements of third party agents).

      13. Servicing. Seller (directly or through an Affiliate of Seller) shall
service the Mortgage Loans in accordance with standards as are customary with
other prudent mortgage lenders with respect to mortgage loans similar to the
Mortgage Loans and are acceptable to Buyer. In the event that Buyer must
liquidate the Mortgage Loans after an Event of Default, Seller acknowledges such
Mortgage Loans may be sold on a servicing-released basis and that no servicing
termination fee will be payable to Seller or any sub-servicers, if applicable.
Any sub-servicer that is not an Affiliate of Seller must be approved by Buyer.

      14. Set-off. In addition to any rights and remedies of Buyer hereunder and
by law, Buyer shall have the right, without prior notice to Seller, upon any
amount becoming due and payable (after the expiration of any applicable grace
period) by Seller hereunder or under Seller obligations (whether at the stated
maturity, by acceleration or otherwise) to set-off and appropriate and apply
against such amount any and all deposits (general or special, time or demand,
provisional or final), and any other credits, indebtedness or claims, in each
case whether direct or indirect, absolute or contingent, matured or unmatured,
at any time held or owing by Buyer or any Affiliate thereof to or for the credit
or the account of Seller. Buyer agrees promptly to notify Seller after any such
set-off and application made by Buyer, provided that the failure to give such
notice shall not affect the validity of such set-off and application.

                                       13
<PAGE>

      15. CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

            THE BUYER AND THE SELLER AND GUARANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY:

      (a)   SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR
            PROCEEDING RELATING TO THIS LETTER AGREEMENT AND THE OTHER PROGRAM
            DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY, OR
            FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF,
            TO THE EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF
            NEW YORK, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE
            SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY
            THEREOF;

      (b)   CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH
            COURTS AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION
            THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR
            PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS
            BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM
            THE SAME;

      (c)   AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY
            BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED
            MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID,
            TO ITS ADDRESS SET FORTH HEREIN; AND

      (d)   AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE
            OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE
            RIGHT TO SUE IN ANY OTHER JURISDICTION.

            THE BUYER AND THE SELLER AND THE GUARANTOR HEREBY IRREVOCABLY WAIVE,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY
JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS LETTER
AGREEMENT, ANY OTHER PROGRAM DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY.

      16. Price Differential Payment Date. The Seller shall pay to the Buyer the
accrued and unpaid Price Differential on each Price Differential Payment Date.

      17. Collateral Information. On each Purchase Date (with respect to
Mortgage Loans purchased on such date) and by no later than the fifth business
day of each month (with respect to all Mortgage Loans subject to Transactions as
of the last day of the preceding month), Seller

                                       14
<PAGE>

shall deliver to Buyer, either by direct modem electronic transmission or via a
computer diskette, information in Excel format with respect to each Mortgage
Loan the following data: (i) Seller's loan number, (ii) the Mortgagor's name,
(iii) the address of the Mortgaged Property, (iv) the current interest rate, (v)
the original balance, (vi) the current balance as of the most recent paid to
date, (vii) the paid to date and the next payment date, (viii) the appraised
value of the Mortgaged Property at the time the Mortgage Loan was originated,
(ix) whether the interest rate is fixed or adjustable (and if adjustable, the
"ARM" code, that includes the index, adjustment frequency, spread, caps and
other terms), (x) the lien position of the Mortgage Loan on the Mortgaged
Property, (xi) the occupancy status of the Mortgaged Property (including whether
owner occupied), (xii) whether the Mortgage Loan is a balloon Mortgage Loan,
(xiii) the first payment date, (xiv) the maturity date, (xv) the principal and
interest payment, (xvi) the property type of the Mortgaged Property, (xvii) the
Mortgagor's FICO Score (where available in the Mortgage File), (xviii) the
applicable Mortgage Loan grade, (xix) the social security number of the
Mortgagor, (xx) the Mortgage Note date, and (xxi) the prepayment penalty and
prepayment penalty type, (xxii) the delinquency status and (xxiii) Mortgage Loan
purpose (i.e., refinance, cash out refinance, home improvement, debt
consolidation) and (xxiv) LNA Flag (y/n). In addition to the above, please
include a field for the original combined loan to value ratio (CLTV).

      18. Buyer's Appointment As Attorney-In-Fact.

      (a) The Seller hereby irrevocably constitutes and appoints the Buyer and
any officer or agent thereof, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power and authority in the place
and stead of the Seller and in the name of the Seller or in its own name, from
time to time in the Buyer's discretion, for the purpose of carrying out the
terms of this Letter Agreement and the Master Repurchase Agreement, to take any
and all appropriate action and to execute any and all documents and instruments
which may be reasonably necessary or desirable to accomplish the purposes of
this Letter Agreement and the Master Repurchase Agreement, and, without limiting
the generality of the foregoing, the Seller hereby gives the Buyer the power and
right, on behalf of the Seller, without assent by, but with notice to, the
Seller, if an Event of Default shall have occurred and be continuing, to do the
following:

                  (i) in the name of the Seller, or in its own name, or
            otherwise, to take possession of and endorse and collect any checks,
            drafts, notes, acceptances or other instruments for the payment of
            moneys due with respect to any other Repurchase Assets and to file
            any claim or to take any other action or proceeding in any court of
            law or equity or otherwise deemed appropriate by the Buyer for the
            purpose of collecting any and all such moneys due with respect to
            any other Collateral whenever payable;

                  (ii) to pay or discharge taxes and Liens levied or placed on
            or threatened against the Collateral;

                  (iii) (A) to direct any party liable for any payment under any
            Collateral to make payment of any and all moneys due or to become
            due thereunder directly to the Buyer or as the Buyer shall direct;
            (B) to ask or demand for, collect, receive

                                       15
<PAGE>

            payment of and receipt for, any and all moneys, claims and other
            amounts due or to become due at any time in respect of or arising
            out of any Collateral; (C) to sign and endorse any invoices,
            assignments, verifications, notices and other documents in
            connection with any Collateral; (D) to commence and prosecute any
            suits, actions or proceedings at law or in equity in any court of
            competent jurisdiction to collect the Collateral or any proceeds
            thereof and to enforce any other right in respect of any Collateral;
            (E) to defend any suit, action or proceeding brought against the
            Seller with respect to any Collateral; (F) to settle, compromise or
            adjust any suit, action or proceeding described in clause (E) above
            and, in connection therewith, to give such discharges or releases as
            the Buyer may deem appropriate; and (G) generally, to sell,
            transfer, pledge and make any agreement with respect to or otherwise
            deal with any Collateral as fully and completely as though the Buyer
            were the absolute owner thereof for all purposes, and to do, at the
            Buyer's option and the Seller's expense, at any time, and from time
            to time, all acts and things which the Buyer deems necessary to
            protect, preserve or realize upon the Collateral and the Buyer's
            Liens thereon and to effect the intent of this Letter Agreement and
            the Repurchase Agreement, all as fully and effectively as the Seller
            might do.

      (b) The Seller hereby ratifies all that said attorneys shall lawfully do
or cause to be done by virtue hereof. This power of attorney is a power coupled
with an interest and shall be irrevocable.

      (c) The Seller also authorizes the Buyer, if an Event of Default shall
have occurred, from time to time, to execute, in connection with any sale
provided for in Section 11 of the Master Repurchase Agreement, any endorsements,
assignments or other instruments of conveyance or transfer with respect to the
Collateral.

      (d) The powers conferred on the Buyer hereunder are solely to protect the
Buyer's interests in the Collateral and shall not impose any duty upon it to
exercise any such powers. The Buyer shall be accountable only for amounts that
it actually receives as a result of the exercise of such powers, and neither it
nor any of its officers, directors, employees or agents shall be responsible to
the Seller for any act or failure to act hereunder, except for its or their own
gross negligence or willful misconduct.

                                       16
<PAGE>

            Please indicate your agreement to the terms and conditions of this
Letter Agreement in the space provided below where upon this Letter Agreement
shall become a binding agreement between us.

                                          Very truly yours,

                                          BARCLAYS BANK PLC

                                          By:   /s/ Jay Kim
                                             -----------------------------
                                             Name:   Jay Kim
                                             Title:  Managing Director

Accepted and Agreed as of
the date first above written:

AMERICAN HOME MORTGAGE ACCEPTANCE, INC.

By:   /s/ Alan B. Horn
   ----------------------------------
   Name:  Alan B. Horn
   Title: Executive Vice President,
          General Counsel & Secretary

                                       17
<PAGE>

                                                                      Schedule B

                    Representations and Warranties Regarding
                                 Mortgage Loans

      Seller represents and warrants to Buyer that, with respect to each
Mortgage Loan sold in a Transaction hereunder, as of the related Purchase Date:

      (a) Mortgage Loans as Described. The information set forth in the schedule
of Mortgage Loans attached as schedule A to the Letter Agreement (the "Mortgage
Loan Schedule") is complete, true and correct in all material respects and all
information included in the Collateral Information previously delivered to the
Buyer is complete, true and correct in all material respects.

      "Collateral Information" means the following information with respect to
each Mortgage Loan: (i) Seller's loan number, (ii) the Mortgagor's name, (iii)
the address of the Mortgaged Property, (iv) the current interest rate, (v) the
original balance, (vi) the current balance as of the most recent paid to date,
(vii) the paid to date and the next payment date, (viii) the appraised value of
the Mortgaged Property at the time the Mortgage Loan was originated, (ix)
whether the interest rate is fixed or adjustable (and if adjustable, the "ARM"
code, that includes the index, adjustment frequency, spread, caps and other
terms), (x) the lien position of the Mortgage Loan on the Mortgaged Property,
(xi) the occupancy status of the Mortgaged Property (including whether owner
occupied), (xii) whether the Mortgage Loan is a balloon Mortgage Loan, (xiii)
the first payment date, (xiv) the maturity date, (xv) the principal and interest
payment, (xvi) the property type of the Mortgaged Property, (xvii) the
Mortgagor's FICO Score (where available in the Mortgage File), (xviii) the
applicable Mortgage Loan grade, (xix) the social security number of the
Mortgagor, (xx) the Mortgage Note date, and (xxi) the prepayment penalty and
prepayment penalty type, (xxii) the delinquency status, (xxiii) Mortgage Loan
purpose (i.e., refinance, cash out refinance, home improvement, debt
consolidation) and (xxiv) LNA Flag (y/n). In addition to the above, please
include a field for the original combined loan to value ratio (CLTV).

      (b) Market Value. The Mortgage Loan does not have a Market Value that is
deemed to be zero pursuant to the definition of Market Value.

      (c) No Outstanding Charges. There are no defaults in complying with the
terms of the Mortgage, and all taxes, governmental assessments, insurance
premiums, water, sewer and municipal charges, leasehold payments or ground rents
that previously became due and owing have been paid, or an escrow of funds has
been established in an amount sufficient to pay for every such item that remains
unpaid and that has been assessed but is not yet due and payable. Seller has not
advanced funds, or induced, solicited or knowingly received any advance of funds
by a party other than the Mortgagor, directly or indirectly, for the payment of
any amount required under the Mortgage Loan, except for interest accruing from
the date of the Mortgage Note or date of disbursement of the Mortgage Loan
proceeds, whichever is greater, to the day that precedes by one month the due
date of the first installment of principal and interest.

                                 Schedule B - 1
<PAGE>

      (d) Original Terms Unmodified. The terms of the Mortgage Note and Mortgage
have not been impaired, waived, altered or modified in any respect, except by a
written instrument that has been recorded, if necessary to protect the interests
of Buyer and that has been delivered to Buyer or its designee (including
Custodian). The substance of any such waiver, alteration or modification has
been approved by the title insurer, to the extent required by the policy, and
its terms are reflected on the Mortgage Loan Schedule. No Mortgagor has been
released, in whole or in part, except in connection with an assumption agreement
approved by the title insurer, and which assumption agreement is included in the
Mortgage File delivered to Buyer or its designee (including Custodian) and the
terms of which are reflected in the Mortgage Loan Schedule and/or Collateral
Information.

      (e) No Defenses. The Mortgage Loan is not subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury,
nor will the operation of any of the terms of the Mortgage Note 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.

      (f) Insurance Policies in Effect. The fire and casualty insurance policy
covering the Mortgaged Property (i) affords (and will afford) sufficient
insurance against fire and such other risks as are usually insured against in
the broad form of extended coverage insurance from time to time available, as
well as insurance against flood hazards if the Mortgaged Property is an area
identified by the Federal Emergency Management Agency as having special flood
hazards; (ii) is a standard policy of insurance for the locale where the
Mortgaged Property is located, is in full force and effect, and the amount of
the insurance is in the amount of the full insurable value of the Mortgaged
Property on a replacement cost basis or the unpaid balance of the Mortgage
Loans, whichever is less; (iii) names the present owner of the Mortgaged
Property as the insured; and (iv) contains a standard mortgagee loss payable
clause in favor of Seller. All individual insurance policies with respect to the
Mortgage Loan are the valid and binding obligation of the insurer and contain a
standard mortgagee clause naming Seller, its successors and assigns, as
Mortgagee. All premiums thereon have been paid. The Mortgage obligates the
Mortgagor thereunder to maintain all such insurance policies at the Mortgagor's
cost and expense, and upon the Mortgagor's failure to do so, authorizes the
holder of the Mortgage to obtain and maintain such insurance at the Mortgagor's
cost and expense and to seek reimbursement therefor from the Mortgagor.

      (g) Compliance with Applicable Laws. Any and all requirements of any
federal, state or local law including usury, truth-in-lending (including the
Home Ownership and Equity Protection Act), real estate settlement procedures,
consumer credit protection, equal credit opportunity or disclosure laws
applicable to the origination and servicing of the Mortgage Loan have been
complied with, and Seller shall maintain in its possession, available for
Buyer's inspection, and shall deliver to Buyer upon demand, evidence of
compliance with all such requirements.

      (h) No Satisfaction of Mortgage. The Mortgage has not been satisfied,
canceled, subordinated or rescinded, in whole or in part, and the Mortgaged
Property has not been released

                                 Schedule B - 2
<PAGE>

from the lien of the Mortgage, in whole or in part, nor has any instrument been
executed that would effect any such release, cancellation, subordination or
rescission.

      (i) Location and Type of Mortgaged Property. The Mortgaged Property is
located in the state identified in the Mortgage Loan Schedule and consists of a
parcel of real property with a single family residence erected thereon, or a
two- to four-family dwelling, or an individual condominium unit in a condominium
project, or an individual unit in a planned unit development and no residence or
dwelling is a mobile home or a manufactured dwelling (other than a mobile home
or a manufactured dwelling permanently affixed to real property owned by
Mortgagor). No portion of the Mortgaged Property is used for commercial
purposes.

      (j) Valid First Lien. The Mortgage is a valid, subsisting and enforceable
first lien on the Mortgaged Property, including all buildings on the Mortgaged
Property and all installations and mechanical, electrical, plumbing, heating and
air conditioning systems located in or annexed to such buildings, and all
additions, alterations and replacements made at any time with respect to the
foregoing. The lien of the Mortgage is subject only to:

            (i) the lien of current real property taxes and special assessments
      not yet due and payable;

            (ii) covenants, conditions and restrictions, rights of way,
      easements and other matters of the public record as of the date of
      recording acceptable to mortgage lending institutions generally and
      specifically referred to in the lender's title insurance policy delivered
      to the originator of the Mortgage Loan and (i) referred to or otherwise
      considered in the appraisal made for the originator of the Mortgage Loan
      or (ii) that do not adversely affect the appraised value of the Mortgaged
      Property set forth in such appraisal;

            (iii) in the case of a Mortgaged Property that is a condominium or
      an individual unit in a planned unit development, liens for common charges
      permitted by statute; and

            (iv) other matters to which like properties are commonly subject
      which do not materially interfere with the benefits of the security
      intended to be provided by the Mortgage or the use, enjoyment, value or
      marketability of the related Mortgaged Property.

      Any security agreement, chattel mortgage or equivalent document related to
and delivered in connection with the Mortgage Loan establishes and creates a
valid, subsisting and enforceable first lien and first priority security
interest on the property described therein and Seller has full right to pledge
and assign the same to Buyer or its designee (including Custodian).

      (k) Validity of Mortgage Documents. The Mortgage Note and the Mortgage are
genuine, and each is the legal, valid and binding obligation of the maker
thereof enforceable in accordance with its terms, except as such enforcement may
be limited by bankruptcy, insolvency, reorganization, receivership, 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). All parties to
the Mortgage Note

                                 Schedule B - 3
<PAGE>

and the Mortgage had legal capacity to enter into the Mortgage Loan and to
execute and deliver the Mortgage Note and the Mortgage, and the Mortgage Note
and the Mortgage have been duly and properly executed by such parties. The
Mortgagor is a natural person or living trust (meeting the requirements of
Fannie Mae) who is a party to the Mortgage Note and the Mortgage in an
individual or trustee capacity, respectively.

      (l) Payments Current. No payment required under the Mortgage Loan is 30
days or more delinquent nor has any payment under the Mortgage Loan been 30 days
or more delinquent at any time since the origination of the Mortgage Loan.

      (m) Ownership. Seller is the sole owner of record and holder of the
Mortgage Loan. The Mortgage Loan is not assigned or pledged except as provided
in this Agreement, and Seller has good and marketable title thereto, and has
full right to pledge and assign the Mortgage Loan to Buyer or its designee
(including Custodian) free and clear of any encumbrance, equity, participation
interest, lien, pledge, charge, claim or security interest, and has full right
and authority subject to no interest or participation of, or agreement with, any
other party, to sell and assign each Mortgage Loan pursuant to this Agreement.

      (n) Doing Business. All parties that have had any interest in the Mortgage
Loan, whether as mortgagee, assignee, pledgee or otherwise, are (or, during the
period in which they held and disposed of such interest, were) (1) in compliance
with any and all applicable licensing requirements of the laws of the state
wherein the Mortgaged Property is located, and (2) organized under the laws of
such state, or (3) qualified to do business in such state, or (4) federal
savings and loan associations or national banks having principal offices in such
state, or (5) not doing business in such state; provided, if a warehouse lender
that was the assignee of the Mortgage Loans was not authorized to do business in
the jurisdiction where the Mortgaged Property is located, the Seller represents
and warrants that the financing of the Mortgage Loan by such warehouse lender,
the taking an assignment of such Mortgage Loan and the holding of an interest in
the Mortgage Loan by the warehouse lender did not constitute doing business in
that jurisdiction.

      (o) Loan-to-Value Ratio. No Mortgage Loan has a Loan-to-Value Ratio of
more than 100%.

      "Loan-to-Value Ratio" means with respect to any Mortgage Loan, the
fraction, expressed as a percentage, the numerator of which is the principal
balance of such Mortgage Loan at the date of origination and the denominator of
which is the lowest of (a) the value of the related Mortgaged Property as set
forth in the appraisal of such Mortgaged Property obtained in connection with
the origination of such Mortgage Loan or (b) in the case of a Mortgage Loan that
is a purchase money mortgage, the purchase price of the Mortgaged Property.

      (p) Title Insurance. The Mortgage Loan is covered by an ALTA mortgage
title insurance policy or such other form of policy acceptable to Fannie Mae or
Freddie Mac, issued by and constituting the valid and binding obligation of a
title insurer 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 and qualified to do business in the jurisdiction where the

                                 Schedule B - 4
<PAGE>

Mortgaged Property is located, insuring Seller, its successors and assigns, as
to the first priority lien of the Mortgage in the case of a Mortgage Loan
secured by a first Mortgage, in the original principal amount of the Mortgage
Loan. Seller is the sole named insured of such mortgage title insurance policy,
the assignment to Buyer or Custodian as assignee of Buyer of Seller's interest
in such mortgage title insurance policy does not require the consent of or
notification to the insurer or the same has been obtained, and such mortgage
title insurance policy is in full force and effect and will be in full force and
effect and inure to the benefit of Buyer upon the consummation of the
transactions contemplated by this Agreement. No claims have been made under such
mortgage title insurance policy and no prior holder of the related Mortgage,
including Seller, has done, by act or omission, anything that would impair the
coverage of such mortgage title insurance policy.

      (q) No Defaults. There is no default, breach, violation or event of
acceleration existing under the Mortgage or the Mortgage Note and no event
which, with the passage of time or with notice and the expiration of any grace
or cure period, would constitute a default, breach, violation or event of
acceleration, and neither Seller nor its predecessors have waived any default,
breach, violation or event of acceleration.

      (r) No Mechanics' Liens. There are no mechanics' or similar liens or
claims that have been filed for work, labor or material (and no rights are
outstanding that under the law could give rise to such liens) affecting the
Mortgaged Property that are or may be liens prior to, or equal or coordinate
with, the lien of the Mortgage.

      (s) Location of Improvements; No Encroachments. Except as may be expressly
noted and considered in the appraisal of the Mortgaged Property, all
improvements that were considered in determining the appraised value of the
Mortgaged Property lay wholly within the boundaries and building restriction
lines of the Mortgaged Property and no improvements on adjoining properties
encroach upon the Mortgaged Property. No improvement located on or being part of
the Mortgaged Property is in violation of any applicable zoning law or
regulation.

      (t) Origination. The Mortgage Loan was originated by Seller, an affiliate
of Seller. The documents, instruments and agreements submitted for loan
underwriting were not falsified and contain no untrue statement of material fact
or omit to state a material fact required to be stated therein or necessary to
make the information and statements therein not misleading.

      (u) Customary Provisions. The Mortgage contains customary and enforceable
provisions such as to render the rights and remedies of the holder thereof
adequate for the realization against the Mortgaged Property of the benefits of
the security provided thereby, including, (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 to a Mortgagor
that would preclude the right to sell the Mortgaged Property at a trustee's sale
or the right to foreclose the Mortgage.

      (v) Occupancy of the Mortgaged Property. The Mortgaged Property is
lawfully occupied under applicable law. All inspections, licenses and
certificates required to be made or issued with respect to all occupied portions
of the Mortgaged Property and, with respect to the use and occupancy of the
same, including but not limited to certificates of occupancy and fire

                                 Schedule B - 5
<PAGE>

underwriting certificates, have been made or obtained from the appropriate
authorities. The occupancy status of the Mortgaged Property is as was
represented by the Mortgagor at the time of origination of the Mortgage Loan.

      (w) No Additional Collateral. The Mortgage Note is not and has not been
secured by any collateral except the lien of the corresponding Mortgage and the
security interest of any applicable security agreement or chattel mortgage
referred to in (i) above.

      (x) Deeds of Trust. In the event the Mortgage constitutes a deed of trust,
a trustee, duly qualified under applicable law to serve as such, has been
properly designated and currently so serves and is named in the Mortgage, and no
fees or expenses are or will become payable by Buyer to the trustee under the
deed of trust, except in connection with a trustee's sale after default by the
Mortgagor.

      (aa) Acceptable Investment. Seller has no knowledge of any circumstances
or conditions with respect to the Mortgage, the Mortgaged Property, the
Mortgagor (other than the Mortgagor's credit standing) that can reasonably be
expected to cause private institutional investors that regularly invest in
mortgage loans of the same type as the Mortgage Loan to regard the Mortgage Loan
as an unacceptable investment or adversely affect the value or marketability of
the Mortgage Loan to other similar institutional investors.

      (bb) Purchase of Mortgage Documents. The Mortgage File and any other
documents required by Buyer to be delivered for the Mortgage Loan by Seller
under the Letter Agreement have been delivered to Custodian. Seller is in
possession of a complete, true and accurate Mortgage File except for such
documents the originals of which have been delivered to Buyer or its designee
(including Custodian). Each of the documents and instruments included in the
Mortgage File is duly executed and in due and proper form and each such document
or instrument is in a form generally acceptable to prudent institutional
mortgage lenders that regularly originate and purchase subprime or high
loan-to-value mortgage loans. With respect to each Mortgage Loan, the Seller
shall segregate and maintain continuous custody and control in secure and fire
resistant facilities in accordance with customary standards for such custody of
the original policy of title insurance or a true copy thereof or, if such policy
has not yet been delivered by the insurer, the commitment or binder to issue the
same (which may be marked by the title insurance company) and a certified copy
of mortgage insurance, if applicable.

      (cc) Condominiums/Planned Unit Developments. If the Mortgaged Property is
a condominium unit or a planned unit development (other than a de minimus
planned unit development) such condominium or planned unit development project
meets Seller's underwriting guidelines.

      (dd) Transfer of Mortgage Loans. The assignment of Mortgage is in
recordable form and is acceptable for recording under the laws of the
jurisdiction in which the Mortgaged Property is located.

      (ee) Due on Sale. The Mortgage contains an enforceable provision for the
acceleration of the payment of the unpaid principal balance of the Mortgage Loan
in the event

                                 Schedule B - 6
<PAGE>

that the Mortgaged Property is sold or transferred without the prior written
consent of the mortgagee thereunder.

      (ff) No Buydown Provisions; No Graduated Payments or Contingent Interests.
The Mortgage Loan does not contain provisions pursuant to which monthly payments
are paid or partially paid with funds deposited in any separate account
established by Seller, the Mortgagor or anyone on behalf of the mortgagor, or
paid by any source other than the Mortgagor nor does it contain any other
similar provisions currently in effect that may constitute a "buydown"
provision. The Mortgage Loan is not a graduated payment mortgage loan and the
Mortgage Loan does not have a shared appreciation or other contingent interest
feature.

      (gg) Consolidation of Future Advances. Any future advances made prior to
the Purchase Date have been consolidated with the outstanding principal amount
secured by the Mortgage, and the secured principal amount, as consolidated,
bears a single interest rate and single repayment term. The lien of the Mortgage
securing the consolidated principal amount is expressly insured as having first
lien priority, as the case may be, by a title insurance policy or an endorsement
to the policy insuring the mortgagee's consolidated interest. The consolidated
principal amount does not exceed the original principal amount of the Mortgage
Loan.

      (hh) No Condemnation; Mortgaged Property Undamaged. There is no proceeding
pending or, to Seller's knowledge, threatened for the total or partial
condemnation of the Mortgaged Property. The Mortgaged Property is undamaged by
waste, fire, earthquake or earth movement, windstorm, 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.

      (ii) Collection Practices; Escrow Deposits Interest Rate Adjustments. The
origination and collection practices used with respect to the Mortgage Loan have
been in all respects in accordance with industry custom and practice, and have
been in all respects legal and proper. With respect to escrow deposits and
escrow payments, all such payments are in the possession of Seller and there
exist no deficiencies in connection therewith for which customary arrangements
for repayment thereof have not been made. All escrow payments have been
collected in full compliance with state and federal law. If an escrow of funds
has been established, it is not prohibited by applicable law and has been
established in an amount sufficient to pay for every item that remains unpaid
and has been assessed but is not yet due and payable. No escrow deposits or
escrow payments or other charges or payments due Seller have been capitalized
under the Mortgage or the Mortgage Note. All mortgage interest rate adjustments
have been made in strict compliance with state and federal law and the terms of
the related Mortgage Note. Any interest required to be paid pursuant to state
and local law has been properly paid and credited.

      (jj) Georgia Mortgage Loan. No Mortgage Loan originated between October 1,
2002 and March 7, 2003 (both inclusive) and secured by a Mortgaged Property
located in the State of Georgia is a "home loan" and is either a "covered" or
"high cost loan" as defined in the Georgia Fair Lending Act, as amended. No
Mortgage Loan originated after March 7, 2003 and secured by a Mortgaged Property
located in the State of Georgia is a "home loan" and is a "high cost loan" as
defined in the Georgia Fair Lending Act, as amended.

                                 Schedule B - 7
<PAGE>

      (kk) Appraisal. The Mortgage File for each Mortgage Loan contains an
appraisal of the related Mortgaged Property signed prior to the approval of the
Mortgage Loan application by a qualified appraiser, duly appointed by the
originator of the Mortgage Loan, who had no interest, direct or indirect in the
Mortgaged Property or in any loan made on the security thereof, other than as an
employee of the lender, and whose compensation is not affected by the approval
or disapproval of the Mortgage Loan, and the appraisal and appraiser both
satisfy the requirements of Title XI of the Federal Institutions Reform,
Recovery, and Enforcement Act of 1989 and the regulations promulgated
thereunder, all as in effect on the date the Mortgage Loan was originated.

      (ll) Servicemembers Civil Relief Act of 2003. The Mortgagor has not
notified the Seller, and the Seller has no knowledge of any relief requested or
allowed to the Mortgagor under the Servicemembers Civil Relief Act of 2003.

      (mm) Environmental Matters. The Mortgaged Property is free from any and
all toxic or hazardous substances and there exists no violation of any local,
state or federal environmental law, rule or regulation.

      (nn) Reserved.

      (oo) No Construction Loans. No Mortgage Loan is a construction loan or
relates to manufactured housing that is not permanently affixed to real
property.

      (pp) Selection by Seller. No Mortgage Loan was selected for inclusion
under this Agreement on any basis that was intended to have a material adverse
effect on Buyer.

      (qq) Reserved.

      (rr) CERCLA. To the best of Seller's knowledge, no Mortgaged Property was,
as of the Purchase Date, located within a one-mile radius of any site listed in
the National Priorities List as defined under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, or on any similar
state list of hazardous waste sites that are known to contain any hazardous
substance or hazardous waste.

      (ss) No Bankruptcy of Mortgagor. None of the Mortgage Loans are subject to
a bankruptcy plan.

      (tt) Conformance to Underwriting Standards. Each Mortgage Loan was
underwritten in all material respects in accordance with the related Seller's
underwriting guidelines supplied to Buyer.

      (uu) Qualified Mortgage. Each Mortgage Loan constitutes a "qualified
mortgage" within the meaning of Section 860G(a)(3) of the Code.

      (vv) Reserved.

                                 Schedule B - 8
<PAGE>

      (ww) Securitization Standards. The Mortgage Loan conforms to the current
standards of securitization (or whole loan sale at market rates for similar
performing assets) applicable to similar assets as determined in the reasonable
judgment of Buyer.

      (xx) Non-Eligible Mortgage Loans. No Mortgage Loan (w) is classified as a
"high cost" loan under the Home Ownership and Equity Protection Act of 1994 or
"high cost," "threshold," or "predatory" loans under any other applicable state,
federal or local law (or a similarly classified loan using different terminology
under a law, regulation or ordinance imposing heightened regulatory scrutiny or
additional legal liability for residential mortgage loans having high interest
rates, points and/or fees), (x) is a "stated income" Mortgage Loan to a
Mortgagor with a credit rating of "C" or lower or (y) is a cash-out refinancing
secured by a Mortgaged Property located in Texas. None of the proceeds of the
Mortgage Loan were used to finance single-premium credit life insurance
policies. Each Mortgage Loan at the time it was made complied in all material
respects with applicable local, state, and federal laws, including, but not
limited to, all applicable predatory and abusive lending laws.

      (yy) Compliance with Anti-Money Laundering Laws. With respect to each
Mortgage Loan, Seller has complied with all applicable anti-money laundering
laws and regulations, including the USA Patriot Act of 2001 (collectively, the
"Anti-Money Laundering Laws"); Seller has established an anti-money laundering
compliance program as required by the Anti-Money Laundering Laws, has conducted
the requisite due diligence in connection with the origination of each Mortgage
Loan for purposes of the Anti-Money Laundering Laws, including with respect to
the legitimacy of the applicable Mortgagor and the origin of the assets used by
the said Mortgagor to purchase the property in question, and maintains, and will
maintain, sufficient information to identify the applicable Mortgagor for
purposes of the Anti-Money Laundering Laws;

      (zz) Lost Instrument Affidavits. In the event any Mortgage File contains a
lost note affidavit in lieu of a Mortgage Note, such lost note affidavit, when
assigned, will be sufficient to effect the transfer of title to the related
Mortgage Loan, without the need for a judicial proceeding, administrative
action, court or regulatory order, or similar action or order.

It is understood and agreed that the representations and warranties set forth in
this Schedule B shall survive each Purchase date and delivery of the respective
Mortgage Files to Custodian on behalf of Buyer.

                                 Schedule B - 9EXHIBIT 10.18.2

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

                           Barclays Bank PLC, as Buyer

                                       and

               American Home Mortgage Acceptance, Inc., as Seller

                                       and

               Deutsche Bank National Trust Company, as Custodian

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

                               CUSTODIAL AGREEMENT

                              As of March 10, 2006

================================================================================
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----
<S>     <C>                                                                                <C>
Section 1.   Definitions.....................................................................1
Section 2.   Deposit of Mortgage Loans; Effecting a Transaction; Funding Account.............6
Section 3.   Repurchase Date.................................................................7
Section 4.   Trust Receipt...................................................................8
Section 5.   Reserved........................................................................9
Section 6.   Reserved........................................................................9
Section 7.   Obligations of the Custodian; Certain Representations and Warranties............9
Section 8.   Substitution...................................................................10
Section 9.   Additional Mortgage Loans......................................................10
Section 10.  Future Defects. ...............................................................11
Section 11.  Release for Servicing..........................................................11
Section 12.  Limitation on Release.  .......................................................12
Section 13.  Release for Payment. ..........................................................12
Section 14.  Fees of Custodian.  ...........................................................12
Section 15.  Removal or Resignation of Custodian With Respect to Some or All of the
             Mortgage Loans.................................................................13
Section 16.  Examination and Copies of Mortgage Loan Files..................................14
Section 17.  Insurance of Custodian. .......................................................14
Section 18.  Covenants of Seller.  .........................................................14
Section 19.  Periodic Statements.  .........................................................15
Section 20.  Governing Law; Counterparts. ..................................................15
Section 21.  No Adverse Interest of Custodian.  ............................................15
Section 22.  Custodian Representations......................................................15
Section 23.  Cumulative Rights..............................................................16
Section 24.  Notices.  .....................................................................16
Section 25.  Successors and Assigns; Benefits of Custodial Agreement.  .....................18
Section 26.  Reliance of Custodian..........................................................18
Section 27.  Indemnification................................................................18
Section 28.  Obligations of the Custodian With Respect to the Trust Receipts................19
Section 29.  Authorized Representatives. ...................................................20
Section 30.  Reproduction of Documents.  ...................................................21
Section 31.  Amendment; Waiver; Entire Agreement; Severability.  ...........................21
Section 32.  Consent to Jurisdiction.  .....................................................21
Section 33.  Confidentiality.  .............................................................22
</TABLE>

                                      -i-
<PAGE>

                                   APPENDIXES

APPENDIX A        ADDITIONAL DEFINITIONS

                                    EXHIBITS

EXHIBIT 1   FORM OF TRUST RECEIPT

EXHIBIT 2   FORM OF REQUEST FOR RELEASE OF DOCUMENTS AND RECEIPTS

EXHIBIT 3   AUTHORIZED REPRESENTATIVES OF THE CUSTODIAN

EXHIBIT 4   AUTHORIZED REPRESENTATIVES OF SELLER

EXHIBIT 5   AUTHORIZED REPRESENTATIVES OF SELLER'S DESIGNEE

EXHIBIT 6   AUTHORIZED REPRESENTATIVES OF THE BUYER

EXHIBIT 7   FORM OF LOAN SCHEDULE

EXHIBIT 8   FORM OF CUSTODIAL DELIVERY

EXHIBIT 9   FORM OF NOTICE TO CUSTODIAN

EXHIBIT 10  FORM OF REPURCHASE RELEASE

EXHIBIT 11  FORM OF LOST NOTE AFFIDAVIT

EXHIBIT 12  RESERVED

EXHIBIT 13  FORM OF TRANSMITTAL LETTER

EXHIBIT 14  RESERVED

EXHIBIT 15  FORM OF TRANSACTION NOTICE

EXHIBIT 16  RESERVED

EXHIBIT 17  FORM OF ELECTRONIC TRACKING AGREEMENT

                                      -ii-
<PAGE>

            THIS CUSTODIAL AGREEMENT, dated as of March 10, 2006, is made by and
among Barclays Bank PLC, a public limited company organized under the laws of
England and Wales, as buyer ("Buyer"), American Home Mortgage Acceptance, Inc.,
a corporation organized under the laws of Delaware, as seller ("Seller") and
Deutsche Bank National Trust Company, a national banking association ("DBNTC"),
as custodian (in such capacity, together with each successor custodian, the
"Custodian").

                              W I T N E S S E T H:
                              - - - - - - - - - -

            WHEREAS, Buyer and Seller may, from time to time, enter into
transactions (each, a "Transaction") in which Seller sells to Buyer certain
Mortgage Loans against payment by such Buyer of a purchase price therefor, with
a simultaneous agreement by Seller to repurchase from such Buyer that same
Mortgage Loan and to pay to such Buyer a repurchase price, all as provided in
that certain Master Repurchase Agreement, dated as of March 10, 2006, between
Seller and Buyer as supplemented by that certain Letter Agreement, dated as of
March 10, 2006 (each as further amended, supplemented or otherwise modified from
time to time, the "Master Repurchase Agreement"). Seller shall deliver to the
Custodian, upon execution of this Agreement, a true and correct copy of the
Master Repurchase Agreement.

            WHEREAS, the Buyer has requested DBNTC to act as Custodian on behalf
of the Registered Holder(s) for purposes of holding the Mortgage Loans purchased
by Buyer pursuant to the Repurchase Agreement;

            WHEREAS, DBNTC is a national banking association, and a bank (as
defined in Section 9-102(a) of the Uniform Commercial Code), is otherwise
authorized to act as Custodian pursuant to this Agreement, and has agreed to act
as Custodian/bailee for hire for the Registered Holder(s), all as more
particularly set forth herein; and

            WHEREAS, Seller shall from time to time deliver to the Custodian
Mortgage Loans that are subject to each Transaction and has agreed to deliver or
cause to be delivered to the Custodian certain documents with respect to such
Mortgage Loans in accordance with the terms and conditions hereof;

            NOW, THEREFORE, in consideration of the mutual undertakings herein
expressed, the parties hereto hereby agree as follows:

            Section 1. Definitions. Capitalized terms (including those contained
in the preamble hereof) used but not defined herein shall have the meanings
assigned to them in the Master Repurchase Agreement. All references to times in
this Agreement shall be references to New York City time unless otherwise stated
herein.

            In addition, the following terms shall have the respective meanings
set forth below:

            "Additional Mortgage Loans": has the meaning set forth in Section 9
hereof.

            "Affiliate": has the meaning set forth in the Master Repurchase
Agreement.

<PAGE>

            "Agreement" (or "this Agreement"): means this Custodial Agreement
and all exhibits, attachments and supplements hereto, as amended from time to
time.

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

            "Assignment of Mortgage": means an assignment of the Mortgage,
notice of transfer or equivalent instrument in recordable form (excluding only
the name of the assignee, if delivered in blank), sufficient under the laws of
the jurisdiction where the related Mortgaged Property is located to reflect the
transfer of the Mortgage to the party indicated therein.

            "Authorized Representative": has the meaning set forth in Section 29
hereof.

            "Business Day": means any day other than (i) a Saturday or Sunday or
(ii) a day upon which the New York Stock Exchange, the Federal Reserve Bank of
New York or the Custodian is authorized or obligated by law or executive order
to be closed.

            "Buyer": has the meaning set forth in the preamble hereof.

            "Collateral": has the meaning set forth in Section 7 of the Master
Repurchase Agreement.

            "Computer Medium": means a computer tape or other electronic medium
generated by or on behalf of Seller and delivered or transmitted to Buyer and
Custodian which provides information relating to the Mortgage Loans, including
the identity of the related servicer with respect to each Mortgage Loan and the
information set forth in the Mortgage Loan Schedule, in a format reasonably
acceptable to Buyer and the Custodian.

            "Confidential Information": has the meaning set forth in Section 33
hereof.

            "Confirmation": has the meaning set forth in the Master Repurchase
Agreement.

            "Custodial Delivery": means the letter executed by Seller in order
to deliver the Mortgage Loan Files to the Custodian pursuant to this Agreement
on the related Purchase Date, a form of which is attached as Exhibit 8 hereto.

            "Custodial Delivery Failure": has the meaning set forth in Section
27(b) hereof.

            "Custodian": has the meaning set forth in the preamble hereof.

            "Electronic Agent": shall mean MERSCORP, INC, and its successors in
interest or assigns.

            "Electronic Tracking Agreement": has the meaning set forth in the
Master Repurchase Agreement.

            "Event of Default": has the meaning set forth in the Master
Repurchase Agreement.

                                      -2-
<PAGE>

            "Exception Report": means the exception report prepared by the
Custodian pursuant to this Agreement, which report shall contain a loan schedule
identifying each Mortgage Loan delivered pursuant hereto, and any items of
noncompliance with the review criteria set forth in Section 4(a) hereof.

            "Fannie Mae": means Fannie Mae, the government sponsored enterprise
formerly known as the Federal National Mortgage Association.

            "Freddie Mac": means Freddie Mac, the government sponsored
enterprise formerly known as the Federal Home Loan Mortgage Corporation, or any
successor thereto.

            "Guarantor": means American Home Mortgage Investment Corp., or any
successors in interest or assigns.

            "Income": has the meaning set forth in the Master Repurchase
Agreement.

            "Interim Funder": means with respect to each MERS Mortgage Loan, the
Person named on the MERS System as the interim funder pursuant to the MERS
Procedures Manual.

            "Margin Call": has the meaning set forth in the Master Repurchase
Agreement to satisfy a Margin Deficit.

            "Master Repurchase Agreement": has the meaning set forth in the
preamble hereof.

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

            "MERS Designated Mortgage Loan": has the meaning assigned to such
term in Section 3 of the Electronic Tracking Agreement.

            "MERS Identification Number": means the eighteen digit number
permanently assigned to each MERS Mortgage Loan.

            "MERS Procedures Manual": means the MERS Procedures Manual attached
as Exhibit B to the Electronic Tracking Agreement, as it may be amended,
supplemented or modified from time to time.

            "MERS Report": means the schedule listing MERS Designated Mortgage
Loans and other information prepared by an electronic agent pursuant to the
Electronic Tracking Agreement.

            "MERS(R) System": means an Electronic Agent's mortgage electronic
registry system, as more particularly described in the MERS Procedures Manual.

            "Mortgage": means the mortgage, deed of trust, or other instrument
that creates a Lien on the related Mortgaged Property and secures a Note.

                                      -3-
<PAGE>

            "Mortgage Interest Rate": means the annual rate of interest borne on
a Note, which shall be adjusted from time to time with respect to adjustable
rate Mortgage Loans.

            "Mortgage Loan": has the meaning set forth in the Master Repurchase
Agreement.

            "Mortgage Loan File": has the meaning set forth in Appendix A
attached hereto.

            "Mortgage Note": means, with respect to a Mortgage Loan, the related
promissory note together with all riders thereto and amendments thereof or other
evidence of the indebtedness of the related Mortgagor.

            "Mortgage Loan Schedule": means the list of Mortgage Loans delivered
by Seller to the Buyer and the Custodian together with each Transaction Notice,
in the form set forth in Exhibit 7 hereto. Each Mortgage Loan Schedule shall set
forth, as to each Mortgage Loan, the related Mortgagor's name, the address of
the related Mortgaged Property and the outstanding principal balance of the
Mortgage Loan as of the initial Purchase Date, together with any other
information specified by the Buyer from time to time in good faith.

            "Mortgaged Property": has the meaning set forth in the Master
Repurchase Agreement.

            "Mortgagor": shall mean the obligor or obligors on a Mortgage Note,
including any Person who has assumed or guaranteed the obligations of the
obligor thereunder.

            "Notice to the Custodian": has the meaning set forth in Section
28(b) hereof.

            "Person": means any legal person, including any individual,
corporation, limited liability company, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, other legal entity,
government or any agency or political subdivision thereof.

            "Price Differential": has the meaning set forth in the Master
Repurchase Agreement.

            "Program Documents": has the meaning set forth in the Master
Repurchase Agreement.

            "Property": means any right or interest in or to property of any
kind whatsoever, whether real, personal or mixed and whether tangible or
intangible.

            "Purchase Date": means, with respect to each Mortgage Loan, the date
on which such Mortgage Loan is to be transferred by Seller to Buyer in a
Transaction pursuant to the Repurchase Agreement. The Purchase Date shall be
specified in the Confirmation.

            "Purchase Price": has the meaning set forth in the Master Repurchase
Agreement.

                                      -4-
<PAGE>

            "Registered Holder": has the meaning set forth in Section 28(a)
hereof.

            "Repurchase Agreement": has the meaning set forth in the preamble
hereof.

            "Repurchase Date": has the meaning set forth in the Master
Repurchase Agreement.

            "Repurchase Price": has the meaning set forth in the Master
Repurchase Agreement.

            "Request for Release": has the meaning set forth in Section 11
hereof.

            "Responsible Officer": means, when used with respect to the
Custodian, any officer assigned to the corporate trust office located at 1761
East St. Andrew Place, Santa Ana, California 92704, Attention: Mortgage Custody
AH062C (or any successor thereto), including any Vice President, Assistant Vice
President, Trust Officer, any Assistant Secretary, any trust officer or any
other officer of the Custodian customarily performing functions similar to those
performed by any of the above designated officers and having direct
responsibility for the administration of this Agreement and designated on
Exhibit 3 attached hereto (which will be updated from time to time by the
Custodian and provided to the Buyer and Seller); when used with respect to
Seller, Guarantor or a Buyer, its Chief Executive Officer, President, Chief
Financial Officer, any Vice President or Treasurer; and, when used with respect
to any Person (including the foregoing), any other officer authorized by such
Person.

            "Seller": has the meaning set forth in the preamble hereto.

            "Seller's Authorized Representatives": means each Authorized
Representative of each Seller set forth on Exhibit 4 hereto (as the same may
modified from time to time) and each Authorized Representative of each Seller's
Designee set forth on Exhibit 5 hereto (as the same may modified from time to
time) as described in Section 29.

            "Seller's Designee": has the meaning set forth in Section 29 hereof.

            "Servicer": means any Person approved by Buyer in its sole
discretion exercised in good faith.

            "Substitute Assets": has the meaning set forth in the Master
Repurchase Agreement.

            "Transaction": has the meaning set forth in the preamble hereof.

            "Transaction Notice": means a written request of Seller to enter
into a Transaction, which is delivered to the Buyer and the Custodian, in the
form attached as Exhibit 15 hereto.

            "Transferee": has the meaning set forth in Section 28(b) hereof.

                                      -5-
<PAGE>

            "Trust Receipt": means a trust receipt issued by the Custodian
evidencing the Mortgage Loans it holds, in the form attached hereto as Exhibit
1, and delivered to the Buyer by the Custodian in accordance with Section 4
hereof.

            "Uniform Commercial Code": has the meaning set forth in the Master
Repurchase Agreement.

            "Written Instructions": means written communications received by a
Responsible Officer of the Custodian from an Authorized Representative of the
Buyer or the related Seller, including communications received by any means
permitted by Section 24 hereof.

            Section 2. Deposit of Mortgage Loans; Effecting a Transaction;
Funding Account.

            (a) With respect to any Mortgage Loan that Seller desires to sell to
Buyer on the Purchase Date, Seller, Buyer and the Custodian agree to follow the
process set forth below:

            o Seller will deliver to the Custodian and the Buyer the related
      Transaction Notice, the Custodial Delivery, the Mortgage Loan File and the
      related Mortgage Loan Schedule on a Computer Medium via electronic
      transmission no later than 4:00 p.m. (New York City time) on the Business
      Day immediately preceding the proposed Purchase Date;

            o The Buyer will notify the Custodian and the Seller, no later than
      11:00 a.m. (New York City time) on the Purchase Date, of any Mortgage Loan
      not accepted by the Buyer, and thereupon the Custodian shall remove such
      Mortgage Loan from the related Mortgage Loan Schedule;

            o Together with such notification, the Buyer will also deliver to
      Seller such additional information in respect of the accepted Mortgage
      Loans as required under the Master Repurchase Agreement;

            o The Custodian shall deliver to the Buyer a copy of the Exception
      Report for the new Mortgage Loans being purchased by Buyer, along with a
      cumulative Exception Report for all Mortgage Loans sold to Buyer by
      Seller, and a Trust Receipt relating cumulatively to all Mortgage Loans
      sold to Buyer by Seller. Such schedules and reports shall be provided on a
      Computer Medium via electronic transmission no later than 2:00 p.m., (New
      York City time) on the proposed Purchase Date;

            o The Custodian shall deliver to the Buyer a copy of the Exception
      Report for the new Mortgage Loans purchased by Buyer on such Purchase Date
      along with a cumulative Exception Report for all Mortgage Loans purchased
      by Buyer and a cumulative Trust Receipt (together with the cumulative
      Exception Report) relating to all Mortgage Loans purchased by Buyer, in
      each case, on a Computer Medium via electronic transmission no later than
      2:00 p.m. (New York City time) on the Purchase Date;

            o The Custodian shall deliver to the Buyer a copy of the Exception
      Report for the new Mortgage Loans purchased by Buyer on such Purchase Date
      along with a

                                      -6-
<PAGE>

      cumulative Exception Report for all Mortgage Loans purchased by Buyer and
      a cumulative Trust Receipt (together with the cumulative Exception Report)
      relating to all Mortgage Loans purchased by Buyer, in each case, via
      overnight courier for delivery on the Business Day immediately following
      the related Purchase Date; and

            o By 5:00 p.m. (New York City time) of each Business Day other than
      a Purchase Date, the Custodian shall deliver to the Buyer a cumulative
      Exception Report on a Computer Medium via electronic transmission.

            (b) Upon the issuance of any new cumulative Exception Report, the
prior Exception Reports attached to the Trust Receipts for such Mortgage Loans
shall be deemed amended and restated in their entirety by such new cumulative
Exception Report. It is understood and agreed that the Custodian shall not be
required to review more than 500 Mortgage Loan Files subject to this Agreement
on any one Business Day.

            (c) The Custodian shall hold the Mortgage Loan Files as Custodian
and bailee for hire for the exclusive benefit of the Registered Holder and shall
not act upon written instructions of the Buyer or Seller to deliver the Mortgage
Loans other than as expressly provided in this Agreement.

            Section 3. Repurchase Date.

            Seller shall notify the Buyer and the Custodian of the Mortgage Loan
Files relating to the Mortgage Loans that are to be repurchased by Seller, by
3:00 p.m. (New York City time) one (1) Business Day prior to the related
Repurchase Date for any Transaction. The Seller shall pay to the Buyer, by no
later than 4:00 p.m. (New York City time) on such Repurchase Date, in
immediately available funds, the Repurchase Price for such Mortgage Loan,
including the unpaid Price Differential related thereto and together with all
other payments due and payable by Seller to Buyer under the Program Documents in
relation to such Mortgage Loan. For the avoidance of doubt (but without
duplication), Seller shall remit, one (1) Business Day prior to such Repurchase
Date, for the Mortgage Loans to be repurchased by to Seller, an aggregate amount
equal to the Repurchase Price for such Mortgage Loans, determined in accordance
with the terms of such Transaction. Upon receipt by the Custodian of written
notice from the Registered Holder in the form of Exhibit 10 hereto (or via
facsimile or e-mail confirmation from an Authorized Representative of the Buyer)
stating that the Registered Holder has received the Repurchase Price for the
Mortgage Loans subject to, and in accordance with the terms of, such
Transactions, the Custodian shall release to Seller or its designee the Mortgage
Loan Files with respect to such repurchased Mortgage Loans and shall deliver to
the related Registered Holder an amended Trust Receipt with an Exception Report
attached thereto, listing all of the Mortgage Loans still subject to one or more
Transactions. So long as the notice to the Custodian from the Registered Holder
or Authorized Representative of the Buyer is received by 5:00 p.m. (New York
City time), the release of the related Mortgage Loan Files at the direction of
Seller shall occur as soon as reasonably possible, but no later than five
Business Days following receipt of such direction from Seller.

                                      -7-
<PAGE>

            Section 4. Trust Receipt.

            (a) No later than the time set forth in Section 2 and provided that
the Custodian has timely received the items required pursuant to Section 2
herein for up to 500 Mortgage Loan Files subject to this Agreement (with one
additional Business Day to review up to an additional 500 Mortgage Loan Files
subject to this Agreement in excess of such limit), the Custodian shall issue
and deliver to the Buyer an original Trust Receipt relating to the Mortgage
Loans (with an Exception Report attached thereto) delivered hereunder and shall
deliver to the related Seller an original of such Trust Receipt via overnight
courier, to evidence its possession of the Mortgage Loans and the Mortgage Loan
Files and its certification that each such document in the Mortgage Loan Files
is complete and appears regular on its face and each such document in the
Mortgage Loans Files purporting to be an original appears on its face to be so.

            (b) The Exception Report attached to any Trust Receipt shall be
amended on each Business Day via electronic transmission to the Buyer and each
subsequently transmitted Exception Report shall automatically supersede each
prior Exception Report with respect to such Trust Receipt, and shall render all
previously transmitted Exception Reports relating to such Trust Receipt null and
void. Each Registered Holder may request the Custodian to provide such
Registered Holder with a paper copy of the most recent Exception Report
transmitted by the Custodian via electronic transmission with respect to a
related Trust Receipt. The Custodian shall be under no duty to review, inspect
or examine such documents to determine that any of them are enforceable or
appropriate for their prescribed purpose, conform to their stated definitions or
that they are other than what they purport to be on their face; provided,
however, that nothing in this sentence shall limit the obligations of the
Custodian set forth in clause (a) above. The Custodian shall not be required to
determine whether any Mortgage Loan File is required to include documents or
instruments identified in paragraphs (b), (d), and (h) of the definition of
Mortgage Loan File and delivery of any Trust Receipt shall be deemed to
acknowledge receipt of such documents or instruments only to the extent of
Custodian's actual possession of such items, if any. It is specifically agreed
that the Custodian shall have no responsibility for determining whether any
document is valid and binding, whether the text of any assignment or endorsement
is in proper or recordable form or whether any document has been recorded in
accordance with the requirements of any applicable jurisdiction.

            (c) The Seller shall be solely responsible for providing each and
every document required for each Mortgage Loan File to the Custodian in a timely
manner and for completing or correcting any missing, incomplete or inconsistent
documents, and the Custodian shall not be responsible or liable for taking any
such action, causing Seller or any other Person to do so or notifying any Person
(other than the Buyer to the extent specifically required in this Agreement)
that any such action has or has not been taken. The Custodian makes no
representations as to and shall not be responsible to verify (i) the validity,
legality, enforceability, sufficiency, due authorization, recordability, or
genuineness of any document in any Mortgage Loan File or any of the Mortgage
Loans identified on the Mortgage Loan Schedule or the Exception Report or (ii)
the collectability, insurability, effectiveness, perfection, priority or
suitability of any such Mortgage Loan. Except as expressly set forth herein, the
Custodian shall not be required to review the content (except as necessary to
certify its review in accordance with Section 4(a)) of any document described in
this Section 4 in order to deliver the Trust Receipt.

                                      -8-
<PAGE>

            Section 5. Reserved.

            Section 6. Reserved.

            Section 7. Obligations of the Custodian; Certain Representations and
Warranties.

            (a) Without prejudice to DBNTC's or the Custodian's functions and
obligations under Section 2 hereof, with respect to the Mortgage Loan Files
delivered to the Custodian or which come into the possession of the Custodian,
the Custodian is, following the related transfer pursuant to Section 2 above,
the custodian, bailee, and agent for the Buyer, and if different from the Buyer,
the Registered Holder, as well. The Custodian shall, following the related
transfer pursuant to Section 2 above, hold all documents received by it for the
exclusive use and benefit of the Buyer, and, if different from the Buyer, the
Registered Holder, as well, and shall make disposition thereof only in
accordance with this Agreement and written instructions furnished by such
Registered Holder. The Custodian shall segregate and maintain continuous custody
of the Mortgage Loan Files in secure and fire-resistant facilities in accordance
with customary standards for such custody.

            (b) The Custodian shall promptly notify the Buyer (and, if
different, the Registered Holder) if (i) Seller fails to pay any amount due to
the Custodian under this Agreement or any separate fee agreement related hereto;
(ii) a Responsible Officer of the Custodian has written notice that any
mortgage, pledge, lien, security interest or other charge or encumbrance has
been placed on the Mortgage Loan Files other than in the ordinary course of
business; or (iii) any representation, warranty and covenant contained in
Section 22 were to become untrue or incorrect at any time during the term of
this Agreement.

            (c) No provision of this Agreement shall require Custodian to expend
or risk its own funds or otherwise incur financial liability (other than
expenses or liabilities otherwise required to be incurred by the express terms
of Section 15 (c) and Section 17 of this Agreement) in the performance of its
duties under this Agreement if it shall have reasonable grounds for believing
that repayment of such funds or indemnity satisfactory to it is not reasonably
assured to it.

            (d) Other than as provided herein, the Custodian shall not be liable
for any action or omission to act hereunder except for its own negligence or
lack of good faith or willful misconduct and for the actions or omissions of its
officers, directors and employees in connection with this Agreement. In no event
shall Custodian have any responsibility to ascertain or take action except as
expressly provided herein. None of the Custodian's officers, directors or
employees shall have any personal or individual liability hereunder.

            (e) Custodian shall have no duties or responsibilities except those
that are specifically set forth in this Agreement. Custodian shall have no
responsibility for duty with respect to any Mortgage Loan File while not in its
possession. No representation, warranty, covenant, agreement, obligation or duty
of the Custodian shall be implied with respect to this Agreement or the
Custodian's services hereunder other than those specifically set forth in this
Agreement.

                                      -9-
<PAGE>

            (f) The Custodian, the Buyer and Seller each hereby represents and
warrants to each other party that this Agreement has been duly authorized,
executed and delivered by such party and constitutes the legal, valid, and
binding obligation of such party enforceable in accordance with its terms.

            (g) In the event that (i) the Buyer, Seller, or the Custodian shall
be served by a third party with any type of levy, attachment, writ, or court
order with respect to any Mortgage Loan File or any document included within a
Mortgage Loan File or (ii) a third party shall institute any court proceeding by
which any Mortgage Loan File or a document included within a Mortgage Loan File
shall be required to be delivered otherwise than in accordance with the
provisions of this Agreement, the party receiving such service shall promptly
deliver or cause to be delivered to the other parties to this Agreement copies
of all court papers, orders, documents and other materials concerning such
proceedings. The Custodian shall, to the extent permitted by law or court order
continue to hold and maintain all the Mortgage Loan Files that are the subject
of such proceedings pending a final, nonappealable order of a court of competent
jurisdiction permitting or directing disposition thereof. Upon final
determination of such court, the Custodian shall dispose of such Mortgage Loan
File or any document included within such Mortgage Loan File as directed by the
Buyer which shall give a direction consistent with such determination. Expenses
of the Custodian (including reasonable attorneys' fees and related expenses)
incurred as a result of such proceedings shall be borne by Seller.

            Section 8. Substitution.

            (a) On the Business Day of Custodian's receipt of a Request for
Release executed by a Seller and Registered Holder, as applicable, in the form
of Exhibit 2 attached hereto (with box 4 checked), and provided that the
Custodian has delivered to the Buyer a Trust Receipt with respect to the
Substitute Assets, the Custodian will transfer, or cause to be transferred, the
Mortgage Loan Files or portions thereof then held by Custodian related to the
Mortgage Loans specified in such Request to Seller or its designee in exchange
for the simultaneous transfer by Seller to the Custodian of Mortgage Loans.
Seller must deliver or cause to be delivered to Custodian, the Mortgage Loan
Files for the Substitute Assets together with a Custodial Delivery and Mortgage
Loan Schedule in accordance with the provisions of Section 2 hereof. It is
expressly understood and agreed that the Custodian shall have no duty to perform
any valuation of collateral and shall have no responsibility to ascertain the
adequacy of any Substitute Assets or their conformity to the definition of
"Substitute Assets".

            (b) The Custodian shall deliver to the related Registered Holder and
the Buyer, if the Buyer is not the Registered Holder, and amended Exception
Report and cumulative Trust Receipt that reflects the release of the applicable
Mortgage Loans and the delivery of the Substitute Assets in accordance with the
provisions of Section 2 hereof and Section 4 hereof.

            Section 9. Additional Mortgage Loans.

            (a) In satisfaction of its obligations with respect to a Margin Call
pursuant to Section 4(a) of the Master Repurchase Agreement, Seller, with the
prior written consent of the Buyer, may, from time to time, deliver to the
Custodian, additional Mortgage Loanss (the "Additional Mortgage Loans") as an
addition to the Mortgage Loans already held by the

                                      -10-
<PAGE>

Custodian in accordance with the provisions of this Custodial Agreement. In such
event, Seller shall deliver to the Custodian the Mortgage Loan Files for the
Additional Mortgage Loans together with a Custodial Delivery, with a copy to the
Registered Holder(s) and, if the Buyer is not the applicable Registered Holder
at such time, the Buyer, stating that the Additional Mortgage Loans are being
delivered with respect to an identified Transaction, in accordance with the
provisions of Section 2 hereof, except that such delivery to the Custodian shall
occur no later than noon (New York City time) on the proposed day of
substitution. The Custodian shall in turn deliver by electronic transmission to
the Buyer the related Exception Report on a Computer Medium no later than 9:00
p.m. (New York City time) on the proposed day of substitution and the Buyer
shall notify the Custodian no later than 4:30 p.m. (New York City time) on the
proposed day of substitution of any Mortgage Loans not accepted by Buyer as
Additional Mortgage Loans.

            (b) The Custodian shall deliver to the related Registered Holder and
the Buyer, if the Buyer is not the Registered Holder, a cumulative Trust Receipt
and amended Exception Report that reflects the delivery of the Additional
Mortgage Loans in accordance with the provisions of Section 2 hereof, Section 4
hereof and this Section 9.

            Section 10. Future Defects. During the term of this Agreement, if
the Custodian discovers any defect with respect to any Mortgage Loan File, the
Custodian shall give written specification via the Exception Report of such
defect to the related Seller, the Registered Holder(s) and, if the Buyer is not
a Registered Holder, the Buyer. For purposes of this Section, "defect" means a
failure of a document to conform to the review requirements set forth in Section
4(a). Seller shall be solely responsible for completing or correcting any
missing, incomplete or inconsistent documents, and the Custodian shall not be
responsible or liable for taking or failing to take any such action, causing
Seller or any other person or entity to do so or notifying any Person that any
such action has or has not been taken.

            Section 11. Release for Servicing.

            (a) From time to time and as appropriate for the foreclosure or
servicing of any of the Mortgage Loans or in connection with a sale of a group
of Mortgage Loans by Seller to a third party investor, the Custodian is hereby
authorized, upon receipt in written form of a Request for Release from Seller in
the form of Exhibit 2 attached hereto ("Request for Release"), with respect to
releases of more than files relating to fifteen (15) or more Mortgage Loans on
any one date, with the written acknowledgement of the applicable Registered
Holder and, if the Buyer is not the applicable Registered Holder at such time,
the Buyer, release or cause to be released to Seller or Seller's Authorized
Representative the related Mortgage Loan File or the documents of the related
Mortgage Loan File set forth in such Request for Release; provided, that if the
Mortgage Loan File is released to Seller or its designee for any purpose other
than one of the reasons set forth for boxes 1-5 of Exhibit 2 attached hereto,
Seller shall ensure that any document released to Seller or Seller's Authorized
Representative pursuant to a Request for Release shall be returned to Custodian
no later than ten (10) days from the date of such Request for Release.

            (b) All Mortgage Loan Files or documents of Mortgage Loan Files
released by the Custodian to Seller or, at Seller's written direction, Seller's
Authorized Representative

                                      -11-
<PAGE>

pursuant to this Section 11 shall be held by Seller or Seller's Authorized
Representative, as applicable, in trust for the benefit of the related
Registered Holder unless and until the related Mortgage Loan is liquidated and
all related proceeds have been deposited into the Collection Account or the
"Payoff Amount" is paid to the Registered Holder. Seller or Seller's Authorized
Representative or the Servicer, as applicable, shall return to the Custodian,
the Mortgage Loan File or other such documents of Mortgage Loan Files when the
need therefor in connection with such foreclosure or servicing no longer exists
(but in any event no later than ten (10) days from the date of such Request for
Release), unless the Mortgage Loan shall be liquidated or sold as provided
above. If the Custodian has previously released a Mortgage Loan File as
documents for servicing under Section 11(a), and such Mortgage Loan is
liquidated or required to be sold, transferred or repurchased, Seller or, if the
Mortgage Loan File or documents were released to Seller's Authorized
Representative, Seller's Authorized Representative shall deliver to Custodian an
additional Request for Release that has been acknowledged and agreed by the
Buyer, with a copy to the Registered Holder, certifying such liquidation, sale
or transfer.

            (c) The Custodian shall keep a record of the release and return, if
any, of any Mortgage Loan Files. Upon confirmation of the liquidation, sale or
transfer of any Mortgage Loan, the Custodian shall amend the related mortgage
loan schedule included in the Exception Report to remove reference to such
Mortgage Loan and deliver promptly such amended Mortgage Loan File to the
Registered Holder and, if the Buyer is not the Registered Holder at such time,
the Buyer.

            Section 12. Limitation on Release. Upon notice from the Buyer to the
Custodian that the Mortgage Loan Files relating to twenty-five (25) Mortgage
Loans or more are released at one time (other than in connection with a sale of
a group of Mortgage Loans by Seller to a third party investor), the procedure
for release of Mortgage Loan Files relating to a total of more than twenty-five
(25) Mortgage Loans at any one time shall be determined by the Registered Holder
and, if the Buyer is not the Registered Holder, the Buyer and the Custodian at
the time of such request. Any document a part of, or relating to, a Mortgage
Loan File requested to be released by Seller or Seller's Authorized
Representative may be released only upon the written acknowledgment of the
Request for Release by the Registered Holder(s). The limitations of this
paragraph shall not apply to the release of Mortgage Loan Files to Seller or, at
Seller's written direction, Seller's Authorized Representative under Section 13
below or to the release of Mortgage Loan Files to third party purchasers in
connection with sales of Mortgage Loans to third party purchasers in accordance
with Section 11.

            Section 13. Release for Payment. Upon the payment in full of any
Mortgage Loan, and upon receipt by the Custodian of a Request for Release from
Seller (with the written approval of the Buyer) certifying that such payment in
full has been received or delivered to the Buyer in immediately available funds
(with Seller to provide a copy to the applicable Registered Holder and, if the
Buyer is not the applicable Registered Holder at such time, the Buyer), the
Custodian shall promptly release the related Mortgage Loan File to Seller or, at
Seller's written direction, Seller's Authorized Representative and amend the
related mortgage loan schedule included in the Exception Report to remove
reference to such Mortgage Loan.

            Section 14. Fees of Custodian. The Custodian shall charge such fees
for its services under this Agreement as are set forth in a separate agreement
between the Custodian and

                                      -12-
<PAGE>

Seller, the payment of which fees, together with the Custodian's expenses in
connection herewith, shall be solely the obligation of Seller. In the event of
the resignation or termination or discharge of the Custodian from its duties
hereunder, all then accrued unpaid fees due the Custodian shall be paid by
Seller.

            Section 15. Removal or Resignation of Custodian With Respect to Some
or All of the Mortgage Loans.

            (a) The Custodian may at any time resign and terminate its
obligations under this Custodial Agreement upon at least 60 days' prior written
notice to Seller and the Buyer. Promptly after receipt of notice of the
Custodian's resignation, the Buyer shall appoint, in its sole discretion, after
notice to Seller, a successor Custodian to act on behalf of the Buyer; provided,
however, if no Event of Default has occurred and is continuing, the Buyer's
appointment of a successor Custodian shall be subject to written approval by
Seller (which consent shall not be unreasonably withheld). One original
counterpart of such instrument of appointment shall be delivered to each of the
Buyer, Seller, the Custodian and the successor custodian. If the successor
Custodian shall not have been appointed within 60 days of the Custodian's
providing such notice, the Custodian may petition any court of competent
jurisdiction to appoint a successor Custodian; provided that the Custodian may
not terminate its obligations until a successor custodian is appointed.

            (b) The Buyer may require the Custodian to complete the endorsements
on the Mortgage Notes in the name of the applicable Registered Holder at the
expense of Seller. The Buyer may remove and discharge, with or without cause,
the Custodian from the performance of its duties under this Agreement with
respect to some or all of the Mortgage Loans by at least 30 days' written notice
from the Buyer to the Custodian, with a copy to each other party to this
Agreement. In the event that the Buyer removes the Custodian from the
performance of its duties under this Agreement with respect to all of the
Mortgage Loans, the Buyer may, in its sole discretion, after notice to Seller,
appoint a successor Custodian to act on behalf of the Buyer by written
instrument; provided, however, if no Event of Default has occurred and is
continuing, the Buyer's appointment of a successor Custodian shall be subject to
written approval by Seller (which consent shall not be unreasonably withheld).

            (c) In the event of any such new appointment as contemplated in
subsections (a) and (b) above, the Custodian shall promptly, upon the
simultaneous surrender of any outstanding Trust Receipts held by the Buyer,
transfer to the successor Custodian or the applicable Registered Holder, as
directed by the Buyer, the applicable Mortgage Loan Files being held by the
Custodian under this Agreement. The cost of the shipment of Mortgage Loan Files
arising out of the resignation of Custodian shall be at the expense of
Custodian; provided, however, that if a reason for Custodian's resignation is
due to the non-payment of fees and expenses due to it hereunder by the Seller,
then the shipment cost of such shipment of the Mortgage Loan Files shall be at
the expense of Seller. Seller shall be responsible for the cost of shipment in
all other circumstances and shall be responsible in all cases for the fees and
expenses of the successor custodian and for endorsing the Mortgage Notes and
assigning the Mortgages to the successor custodian, if required.

                                      -13-
<PAGE>

            (d) In the event of termination of this Agreement, the Custodian
shall follow the reasonable instructions of the Registered Holder(s) with
respect to the disposition of the respective Mortgage Loan Files. Concurrently
with the transfer and release of all of the Mortgage Loan Files by the
Custodian, the Registered Holder(s) shall submit the related Trust Receipts to
the Custodian for cancellation. Notwithstanding the foregoing, in the event that
the Buyer terminates this Agreement with respect to some, but not all, of the
Mortgage Loans, this Agreement shall remain in full force and effect with
respect to any Mortgage Loans for which this Agreement is not terminated. In
addition, the Buyer and the Custodian may, at the sole option of the Buyer,
enter into a separate Custodial Agreement which shall be mutually acceptable to
the parties with respect to any or all of the Mortgage Loans with respect to
which this Agreement is terminated.

            Section 16. Examination and Copies of Mortgage Loan Files.

            (a) Upon two Business Days written request to the Custodian by a
Registered Holder, Seller or the Buyer, such Registered Holder, Seller or the
Buyer, as applicable, and its respective agents, accountants, attorneys,
auditors and prospective purchasers will be permitted, during normal business
hours to examine the related Mortgage Loan Files and any other documents,
records and papers in the possession of or under the control of the Custodian
relating to any or all of the Mortgage Loans. The Seller shall be responsible
for any reasonable expenses in connection with such examinations.

            (b) Upon the written request of the Buyer or a Registered Holder,
the Custodian shall provide the Seller, the Buyer or such Registered Holder, as
the case may be, at such requesting party's expense, with copies of the Mortgage
Notes, Mortgages, Assignment of Mortgages and other documents relating to one or
more of the Mortgage Loans.

            Section 17. Insurance of Custodian. At its own expense, the
Custodian shall maintain at all times during the existence of this Agreement and
keep in full force and effect fidelity insurance, theft of document insurance,
forgery insurance, and errors and omissions insurance. All such insurance shall
be in amounts, with standard coverage and subject to standard deductibles, as is
customary for insurance typically maintained by institutions which act as
custodian of collateral substantially similar to the Mortgage Loans or the
Collateral and act in a custodial capacity. The minimum coverage under any such
bond and insurance policies shall be at least equal to the corresponding amounts
required by Fannie Mae in the Fannie Mae Mortgage-Backed Securities Selling and
Servicing Guide or by Freddie Mac in the Freddie Mac Seller's & Servicer's
Guide. A certificate of the respective insurer as to each such policy, with a
copy of such policy attached, shall be furnished to the Buyer upon request.

            Section 18. Covenants of Seller. Seller covenants to the Buyer as of
the date that any Mortgage Loan File documents are released to Seller or
Seller's subservicer pursuant to a Request for Release that:

            (a) if the Request for Release has been submitted for the release of
a Mortgage Loan that has been paid in full, all amounts representing principal
and interest received in connection with the payment in full of the Mortgage
Loan have been paid to the Buyer in immediately available funds as provided in
the Repurchase Agreement prior to or simultaneously

                                      -14-
<PAGE>

with the release of such files; provided, however, that if such prepayment in
full occurs on any date on which an Event of Default has occurred and is
continuing, all amounts received in connection with the payment in full of the
Mortgage Loan shall be paid to the Buyer in immediately available funds as
provided in the Repurchase Agreement prior to or simultaneously with the release
of the related files;

            (b) if item No. 3 has been checked on the Request for Release, the
Repurchase Price for the applicable Mortgage Loan has been paid to the Buyer in
immediately available funds;

            (c) if item No. 4 has been checked on the Request for Release, a
Custodial Delivery has been delivered simultaneously therewith listing the
Substitute Assets; and

            (d) if item No. 5 has been checked on the Request for Release, all
proceeds of foreclosure, insurance, condemnation or other liquidation have been
finally received and credited to Buyer pursuant to the Repurchase Agreement and
this Agreement.

            Section 19. Periodic Statements. Upon the reasonable request of the
Buyer, Seller, or a Registered Holder, the Custodian shall provide to the Buyer,
Seller or Registered Holder, as the case may be, a list, on a Computer Medium,
of all the Mortgage Loans for which the Custodian holds a Mortgage Loan File
pursuant to this Agreement.

            Section 20. Governing Law; Counterparts. This Agreement shall be
governed by the internal laws of the State of New York, without giving effect to
the conflict of laws principles thereof (except for Sections 5-1401 and 5-1402
of the New York General Obligations Law).For the purpose of facilitating the
execution 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 and be one and the same instrument.

            Section 21. No Adverse Interest of Custodian. By execution of this
Agreement, the Custodian represents and warrants that it currently holds, and
during the existence of this Agreement shall hold, no adverse interest, by way
of security or otherwise, in any Mortgage Loans, and hereby waives and releases
any such interest which it may have in any Mortgage Loans as of the date hereof.
The Mortgage Loans shall not be subject to any security interest, lien or right
of set-off by Custodian, or its Affiliates, or any third party claiming through
Custodian, and Custodian shall not pledge, encumber, hypothecate, transfer,
dispose of, or otherwise grant any third party interest in, the Mortgage Loans.

            Section 22. Custodian Representations. The Custodian (and any
successor custodian as of the appointment of such custodian) hereby represents
and warrants as of the date hereof and as of each date it delivers an executed
Trust Receipt (and as of the date of appointment with respect to any successor
custodian) that:

            (a) it is duly organized, validly existing and in good standing as a
national banking association and has all licenses necessary to carry on its
business as it is now being conducted;

                                      -15-
<PAGE>

            (b) it has proper authority to perform its duties hereunder;

            (c) it is not controlled by, under common control with or otherwise
affiliated with or related to Seller or Guarantor and covenants and agrees with
the Buyer that prior to any such affiliation in the future, it shall obtain the
prior written approval of the Buyer;

            Section 23. Cumulative Rights. The rights, powers and remedies of
the Buyer under this Agreement shall be in addition to all rights, powers and
remedies given to the Buyer by virtue of any statute or rule of law, the Master
Repurchase Agreement or any other agreement, all of which rights, powers and
remedies shall be cumulative and may be exercised successively or concurrently
without impairing the ownership interest and security interest of the Buyer, in
the Mortgage Loans and the Collateral.

            Section 24. Notices. All demands, notices and communications
hereunder (including, without limitation, Trust Receipts) shall be in writing
and shall be deemed to have been duly given if mailed, by registered or
certified mail, return receipt requested, or, if by other means, including
electronic mail, facsimile or similar electronic telecommunication device
capable of transmitting or creating a written record directly to the office of
the recipient, when received by the recipient party at the address shown below,
or at such other addresses as may hereafter be furnished to the other parties by
like notice. Any such demand, notice or communication hereunder shall be deemed
to have been received on the date delivered to or received at the premises of
the addressee (as evidenced, in the case of registered or certified mail, by the
date noted on the return receipt, or in the case of electronic mail, facsimile
or similar electronic telecommunication, the date noted on the confirmation of
such transmission).

                  if to Buyer:

                  Barclays Bank PLC
                  c/o Barclays Capital Services LLC
                  200 Cedar Knolls Road
                  Whippany, NJ 07981
                  Facsimile: (973) 576-3059
                  Attn:  Glenn Pearson
                         Hansel Nieves
                  Email: Glenn.Pearson@barclayscapital.com
                         hansel.nieves@barcap.com
                         asgoperations@barcap.com

                                      -16-
<PAGE>

                  with a copy to:

                  Barclays Capital Inc.
                  200 Park Avenue
                  New York, NY 10166
                  Facsimile: (212) 412-6846
                  Attn:  Jay Kim
                         David Lister
                         Harry Ahlin
                  Email: jay.kim@barcap.com
                         david.lister@barcap.com
                         harry.ahlin@barcap.com

                  if to Seller:

                  American Home Mortgage Acceptance, Inc.
                  538 Broadhollow Road
                  Melville, New York  11747
                  Attn:  Craig S. Pino
                  Email: cpino@americanhm.com

                  with a copy to:

                  American Home Mortgage Acceptance, Inc.
                  538 Broadhollow Road
                  Melville, New York 11747
                  Attention: Alan B. Horn

                  if to Guarantor:

                  American Home Mortgage Investment Corp.
                  538 Broadhollow Road
                  Melville, New York  11747
                  Attn:  Craig S. Pino
                  Email: cpino@americanhm.com

                  if to Custodian:

                  Deutsche Bank National Trust Company
                  1761 East St. Andrew Place
                  Santa Ana, CA  92705
                  Attention: Mortgage Custody--AH062C
                  Facsimile:  (714) 247-6035
                  Telephone:  (714) 247-6000

            or as such other address or number may be changed by like
            notice.

                                      -17-
<PAGE>

            Section 25. Successors and Assigns; Benefits of Custodial Agreement.
This Agreement shall inure to the benefit of the successors and assigns of the
parties hereto. No other Person, including any Mortgagor shall be entitled to
any benefit or equitable right, remedy or claim under this Agreement. Buyer may
assign its rights hereunder as provided in the Repurchase Agreement to the
extent permitted by, and on the terms and conditions of, Section 15 of the
Master Repurchase Agreement (which section is incorporated herein by reference).
The Custodian may not assign its rights or obligations hereunder without the
prior written consent of the Buyer and Seller; provided that if an Event of
Default has occurred and is continuing, the consent of Seller shall not be
required. Notwithstanding the foregoing, any Person into which the Custodian may
be merged or consolidated, or any national association resulting from any
merger, conversion or consolidation to which the Custodian is a party, or any
Person succeeding to all or substantially all of the business of the Custodian,
shall be the successor to the Custodian hereunder. Seller may not assign its
rights or obligations hereunder without the prior written consent of the Buyer.

            Section 26. Reliance of Custodian.

            (a) In the absence of bad faith on the part of the Custodian, the
Custodian may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any request, instruction,
certificate, opinion or other document furnished to the Custodian, reasonably
believed by the Custodian to be genuine and to have been signed or presented by
the proper party or parties and conforming on its face to the requirements of
this Custodial Agreement; but in the case of any request, instruction, document
or certificate which by any provision hereof is specifically required to be
furnished to the Custodian, the Custodian shall be under a duty to examine the
same in accordance with the requirements of this Custodial Agreement.

            (b) If the Custodian requests instructions from the Buyer with
respect to any act, action or failure to act in connection with this Agreement,
the Custodian shall be entitled to refrain from taking such action and continue
to refrain from acting unless and until Custodian shall have received Written
Instructions from the Buyer with respect to a Mortgage Loan File without
incurring any liability therefor to the Buyer, Seller or any other Person.

            (c) To help fight the funding of terrorism and money laundering
activities, the Custodian will obtain, verify, and record information that
identifies individuals or entities that establish a relationship or open an
account with the Custodian. The Custodian will ask for the name, address, tax
identification number and other information that will allow the Custodian to
identify the individual or entity who is establishing the relationship or
opening the account. The Custodianmay also ask for formation documents such as
articles of incorporation, an offering memorandum, or other identifying
documents to be provided.

            Section 27. Indemnification.

            (a) Seller agrees to reimburse, indemnify, defend and hold the
Custodian and its directors, officers, agents and employees harmless against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, or out-of-pocket expenses of any kind

                                      -18-
<PAGE>

or nature whatsoever, including reasonable attorneys' fees, that may be imposed
on, incurred by, or asserted against it or them in any way relating to or
arising out of this Agreement or any action taken or not taken by it or them
hereunder unless such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, or out-of-pocket expenses were imposed on,
incurred by or asserted against the Custodian due to the breach, negligence lack
of good faith or willful misconduct on the part of the Custodian or any of its
directors, officers, agents or employees. The foregoing indemnification shall
survive any resignation or removal of the Custodian or the termination or
assignment of this Agreement.

            (b) In the event that the Custodian fails to produce a Mortgage
Note, Assignment of Mortgage or any other document related to a Mortgage Loan
that was in its possession pursuant to Section 2 within five (5) Business Days
after written request therefor by the Buyer or Seller in accordance with the
terms and conditions of this Custodial Agreement; and provided that (i) the
Custodian previously delivered to the Buyer a Trust Receipt and Custodial
Delivery which did not list such document as an exception on the related date of
pledge; (ii) such document is not outstanding pursuant to a Request for Release
in the form annexed hereto as Exhibit 2; and (iii) such document was held by the
Custodian on behalf of the Seller or the Buyer, as applicable (a "Custodial
Delivery Failure"), then the Custodian shall (a) with respect to any missing
Mortgage Note, promptly deliver to the Buyer or the Seller upon request, a Lost
Note Affidavit in the form of Exhibit 11 hereto and (b) with respect to any
missing document related to such Mortgage Loan, including but not limited to a
missing Mortgage Note, indemnify Seller and the Buyer in accordance with the
succeeding paragraph of this Section 27.

            (c) The Custodian agrees to indemnify and hold the Buyer, Seller,
and their respective officers, designees, successors and assigns harmless
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, or out-of-pocket expenses, including
reasonable attorney's fees, that may be imposed on, reasonably incurred by, or
asserted against it or them solely and directly relating to or arising out of
such Custodial Delivery Failure or the Custodian's negligence, willful
misconduct, lack of good faith, or any breach of the conditions, representations
or warranties contained herein. The foregoing indemnification shall survive any
termination or assignment of this Agreement.

            Section 28. Obligations of the Custodian With Respect to the Trust
Receipts.

            (a) The Custodian shall keep a register in which the Custodian shall
provide for the registration of transfers of Trust Receipts as provided herein
and in which it shall record the name and address of the Person to whom such
Trust Receipt is issued (the "Registered Holder"). The Buyer, shall be the
initial Registered Holder for all Mortgage Loans. Each Trust Receipt, upon
initial issuance or reissuance, shall be dated the date of such issuance or
reissuance and shall evidence the receipt and possession by the Custodian on
behalf of the Registered Holder of the Trust Receipt of the related Mortgage
Loan Files and the Registered Holder's right to possess those Mortgage Loan
Files. The Custodian shall treat the person or entity in whose name the Trust
Receipt is registered as the person or entity entitled to possession of the
Mortgage Loan Files evidenced by such Trust Receipt for all purposes whatsoever,
subject to the terms of this Agreement, and the Custodian shall not be affected
by notice of any facts to the contrary. No Trust Receipt shall be valid for any
purpose unless substantially in the form set forth in Exhibit 1 to this
Agreement and executed by manual signature of an Authorized Representative

                                      -19-
<PAGE>

of the Custodian. Such signature upon any Trust Receipt shall be conclusive
evidence, and the only evidence, that such Trust Receipt has been duly delivered
under this Agreement. Trust Receipts bearing the manual signatures of
individuals who were, at the time when such signatures were affixed, Authorized
Representatives of the Custodian shall bind the Custodian, notwithstanding that
such individuals have ceased to be so authorized prior to the delivery of those
Trust Receipts. Each Trust Receipt shall have attached thereto an Exception
Report with respect to the applicable Mortgage Loans and shall otherwise comply
with the second paragraph of Section 4 of this Agreement. Any transferee or
assignee of the Trust Receipt shall succeed to all the rights of the
transferring Registered Holder under this Agreement with respect to such Trust
Receipt and the related Mortgage Loans upon notice to the Custodian and delivery
to the Custodian of the appropriate evidence of such transfer and assignment.

            (b) The Registered Holder may transfer its interest in the Mortgage
Loan Files covered by any Trust Receipt by delivering to the transferee (the
"Transferee") such Trust Receipt, together with an appropriate notice to the
Custodian in the form of Exhibit 9 hereto (the "Notice to the Custodian").
Within three (3) Business Days of receipt of the Notice to the Custodian and
receipt by the Custodian of the Trust Receipt from the Transferee, the Custodian
shall deliver, in accordance with the written instructions of the Transferee, a
Trust Receipt issued in the name of the Transferee and to the place indicated in
any such written direction from the Transferee. Upon receipt of the Notice to
the Custodian from the Registered Holder, the Custodian shall change its records
to reflect that such Transferee is the Registered Holder of the Mortgage Loan
Files.

            (c) In the event that (i) any mutilated Trust Receipt is surrendered
to the Custodian, or the Custodian receives evidence to its satisfaction of the
destruction, loss or theft of any Trust Receipt and (ii) there is delivered to
the Custodian such security or indemnity as may be required by it to save it
harmless, then, in the absence of notice to the Custodian that such Trust
Receipt has been acquired by a bona fide purchaser, the Custodian shall execute
and deliver a new Trust Receipt to such Registered Holder in exchange for or in
lieu of any such mutilated, lost or stolen Trust Receipt.

            (d) Simultaneously with the relinquishment of a Trust Receipt to the
Custodian by the Registered Holder thereof and the delivery by the Custodian of
the related Mortgage Loan Files to Seller or its designee pursuant to Section 3
above or to such Registered Holder or a designee of the Registered Holder, the
Trust Receipt shall be canceled and the related Mortgage Loan Files will no
longer be subject to this Agreement.

            Section 29. Authorized Representatives. Each individual designated
as an authorized representative of the Custodian, Seller and the Buyer (each, an
"Authorized Representative"), is authorized to give and receive notices,
requests and instructions and to deliver certificates and documents in
connection with this Agreement on behalf of the Custodian, Seller, Seller's
Designee or the Buyer, respectively, and the specimen signature for each such
Authorized Representative of the Custodian, Seller, Seller's Designee or the
Buyer initially authorized hereunder is set forth on Exhibits 3, 4, 5, and 6,
respectively. From time to time, the Custodian, Seller and the Buyer may, by
delivering to the others a revised exhibit, change the information previously
given pursuant to this Section, but each of the parties hereto shall be entitled
to rely conclusively on the then current exhibit until receipt of a superseding
exhibit.

                                      -20-
<PAGE>

Seller shall deliver or cause to be delivered to Custodian an Authorized
Representatives exhibit for each subservicer designated by Seller in connection
with Sections 9, 10, and 11 of this Agreement (each, a "Seller's Designee");
provided, that the Custodian shall not recognize any request from Seller's
subservicer unless and until Seller has given the Custodian written notice
identifying such subservicer and such Authorized Representatives exhibit is
received by the Custodian. The Custodian shall be entitled to rely conclusively
upon (i) written notice from Seller identifying a subservicer authorized to give
instructions under Sections 9, 10 and 11 of this Agreement until receipt of
written notice from Seller revoking such authority and (ii) the most recent
Authorized Representatives exhibit delivered to it by a subservicer of Seller
until receipt of a superseding exhibit. If the Custodian shall at any time
receive conflicting instructions from Seller and a subservicer of Seller, the
Custodian shall be entitled to rely on the instructions of Seller.

            Section 30. Reproduction of Documents. This Agreement and all
documents relating thereto, including, without limitation, (i) consents, waivers
and modifications which may hereafter be executed, and (ii) certificates and
other information previously or hereafter furnished, may be reproduced by any
photographic, photostatic, microfilm, microcard, miniature photographic or other
similar process. The parties agree that any such reproduction shall be
admissible in evidence as the original itself in any judicial or administrative
proceeding, whether or not the original is in existence and whether or not such
reproduction was made by a party in the regular course of business, and that any
enlargement, facsimile or further reproduction of such reproduction shall
likewise be admissible in evidence.

            Section 31. Amendment; Waiver; Entire Agreement; Severability. No
amendment or waiver of any provision of this Agreement nor consent to any
departure herefrom shall in any event be effective unless the same shall be in
writing and signed by all the parties hereto, and then such amendment, waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given. This Agreement, together with the Exhibits, Appendixes,
Annexes and other writings referred to herein or delivered pursuant hereto,
constitute the entire contract among the parties relating to the subject matter
hereof and supersede any and all previous agreements and understandings, oral or
written, relating to the subject matter hereof. If any provisions of this
Agreement shall be held invalid or unenforceable, this Agreement shall be
construed as if not containing such provisions, and the rights and obligations
of the parties hereto shall be construed and enforced accordingly.

            Section 32. Consent to Jurisdiction. EACH PARTY HERETO HEREBY WAIVES
TRIAL BY JURY. EACH HEREBY IRREVOCABLY CONSENTS TO THE NON-EXCLUSIVE PERSONAL
JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK, OR IN THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, ARISING OUT OF OR RELATING
TO THE PROGRAM DOCUMENTS IN ANY ACTION OR PROCEEDING. SELLER HEREBY SUBMITS TO,
AND IRREVOCABLY WAIVES ANY OBJECTION SELLER MAY HAVE TO, NON-EXCLUSIVE PERSONAL
JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK AND THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY
DISPUTES ARISING OUT OF OR RELATING TO THE PROGRAM DOCUMENTS.

                                      -21-
<PAGE>

            Section 33. Confidentiality. Custodian hereby acknowledges and
agrees that (i) all written or computer-readable information provided by Buyer
or Seller regarding (a) Buyer or Seller, or (b) the Mortgage Loans, as set forth
on the related Mortgage Loan Schedule, and (ii) the terms of this Agreement and
the Repurchase Agreement (the "Confidential Information"), shall be kept
confidential and shall not be divulged to any Person other than the parties
hereto without Buyer's and Seller's prior written consent except to the extent
that (i) Custodian reasonably deems necessary to do so in working with legal
counsel, auditors, taxing authorities or other governmental agencies or
regulatory bodies or in order to comply with any applicable federal or state
laws, (ii) any portion of the Confidential Information is in the public domain
other than due to a breach of this covenant by Custodian or any disclosure
authorized by this Agreement or (iii) to the extent that Custodian is required
to disclose Confidential Information pursuant to the requirements of any legal
proceeding, Custodian shall notify the Buyer and the related Seller within one
Business Day of its knowledge of such legally required disclosure (unless such
legally required disclosure is pursuant to a grand jury subpoena or disclosure
of such request is otherwise prohibited by law) so that the Buyer or Seller may
seek an appropriate protective order and/or waive Custodian's compliance with
this Agreement. Notice shall be both by telephone and in writing. In the absence
of a protective order or waiver, Custodian may disclose the relevant
Confidential Information if (i) in the written opinion of its counsel, failure
to disclose such Confidential Information would subject Custodian to liability
for contempt, censure or other legal penalty or liability or (ii) Custodian has
not received such protective order or waiver by the time that it is obligated to
comply with such legal proceeding requirement.

                                      -22-
<PAGE>

            IN WITNESS WHEREOF, the Seller, Buyer and the Custodian have caused
their names to be duly signed hereto by their respective officers thereunto duly
authorized, all as of the date first above written.

                                       BARCLAYS BANK PLC, as Buyer

                                       By:    /s/ Jay Kim
                                          --------------------------------------
                                          Name:   Jay Kim
                                          Title:  Managing Director

                                       AMERICAN HOME MORTGAGE
                                          ACCEPTANCE, INC., as Seller

                                       By:    /s/ Alan B. Horn
                                          --------------------------------------
                                          Name:   Alan B. Horn
                                          Title:  Executive Vice President,
                                                  General Counsel & Secretary

                                       DEUTSCHE BANK NATIONAL TRUST
                                          COMPANY, as Custodian

                                       By:    /s/ Norma L. Catone
                                          --------------------------------------
                                          Name:   Norma L. Catone
                                          Title:  Vice President

                                       By:    /s/ Angel Sanchez
                                          --------------------------------------
                                          Name:   Angel Sanchez
                                          Title:  Authorized Signer

Acknowledged and Agreed:

American Home Mortgage Investment Corp.,
as Guarantor

By:    /s/ Alan B. Horn
   -------------------------------------
Name:  Alan B. Horn
Title:  Executive Vice President,
        General Counsel & Secretary

<PAGE>

                                   APPENDIX A

                             ADDITIONAL DEFINITIONS

            In addition to the Definitions set forth in Section 1, the following
words and phrases, unless the context otherwise requires, shall have the
following meanings:

            Mortgage Loan File: With respect to each Mortgage Loan, the
following original documents constituting an original Mortgage Loan File:

            (a) the original Mortgage Note bearing all intervening endorsements
      (or allonges), endorsed "Pay to the order of ___________, without
      recourse" and signed in the name of the last endorsee (the "Last
      Endorsee") by an authorized officer (in the event that the Mortgage Loan
      was acquired by the Last Endorsee in a merger, the signature must be in
      the following form: "[the Last Endorsee], successor by merger to [name of
      predecessor]"; in the event that the Mortgage Loan was acquired or
      originated while doing business under another name, the signature must be
      in the following form: "[the Last Endorsee], formerly known as [previous
      name]");

            (b) the original of any guarantee executed in connection with the
      Mortgage Note (if any);

            (c) the original Mortgage with evidence of recording thereon or a
      copy certified by Seller, its agent or the title company on behalf of
      Seller that have been sent for recording;

            (d) the originals of all assumption, modification, consolidation or
      extension agreements, with evidence of recording thereon or copies
      certified by Seller, its agent or the title company on behalf of Seller to
      have been sent for recording, if any;

            (e) Except with respect to Mortgage Loans registered on MERS, the
      original assignment of Mortgage in blank for each Mortgage Loan, in form
      and substance acceptable for recording and signed in the name of the last
      endorsee thereof (in the event that the Mortgage Loan was acquired by the
      last endorsee in a merger, the signature must be in the following form:
      "[the last endorsee], successor by merger to [name of predecessor]"; in
      the event that the Mortgage Loan was acquired or originated while doing
      business under another name, the signature must be in the following form:
      "[the last endorsee], formerly known as [previous name]");

            (f) the originals of all intervening assignments of mortgage with
      evidence of recording thereon or copies certified by Seller to have been
      sent for recording (intervening assignments shall not be required for any
      Mortgage that has been originated in the name of MERS and registered under
      the MERS System), if any;

            (g) the original of any security agreement, chattel mortgage or
      equivalent document executed in connection with the Mortgage (if any);

                                  Appendix A-1
<PAGE>

            (h) the original mortgagee policy of title insurance, to the extent
delivered; and

            (i) the original power of attorney, if any, or a copy thereof
certified by Seller to have been sent for recording, for any document described
above.

                                  Appendix A-2

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