Document:

<TABLE>
<CAPTION>

                                                                                                   EXHIBIT 10.4

                                               TABLE OF INVESTORS
                               PRIVATE PLACEMENT OF CONVERTIBLE PROMISSORY NOTES
                                AND SERIES A-1 5.5% CONVERTIBLE PREFERRED STOCK

---------------------------------------- ------------------------------ --------------------------------------
                                                                        Shares of Series A-1 into which Note
Investor                                        Amount of Note                     is convertible
---------------------------------------- ------------------------------ --------------------------------------
<S>                                      <C>                            <C>
Edward J. Harris, Trustee                          $250,000                              250
The Harris Family Living Trust U/A
dated 3/1/96

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

Ronald E. Eibensteiner                             $500,000                              500

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

IGCA Investments, LLC                              $666,667                              666

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

Wayne Mills                                        $500,000                              500

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

IGCA Holdings, LLC                                  $83,333                              83

---------------------------------------- ------------------------------ --------------------------------------
</TABLE>February 14, 2001

Attention:   Peter Preston
             President, Bach-Hauser, Inc.

Subject: Cancellation of Frequentsee Application and Toolkit License

Dear Peter,

It is with regret that I must inform you on behalf of Aegiss International the
intent to cancel and render null and void the Bach Hauser acquisition agreement
dated December 08th 2001.

Pursuant to California law with specific regard to the provision provided on
page three, paragraph eight, the agreement will be terminated on March 07, 2001.

Kindly provide the undersigned with written instructions detailing the address
and contact for return of stock certificate #1376.

Good luck in you continued business activities and feel free to contact me if
you require any further information.

Yours truly,

/s/ J. Bradley Hall
------------------------
J. Bradley Hall
Chief Executive OfficerEXECUTION COPY

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

                            GMAC MORTGAGE CORPORATION
                                  as Servicer,

                     GMACM HOME EQUITY LOAN TRUST 2002-HE3,
                                    as Issuer

                                       and

                        WELLS FARGO BANK MINNESOTA, N.A.
                              as Indenture Trustee

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

                               SERVICING AGREEMENT

                           Dated as of August 28, 2002
                            -------------------------

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

                                TABLE OF CONTENTS

                                                               Page

<TABLE>
<CAPTION>

<S>                                                                                        <C>
ARTICLE I         Definitions...............................................................2

        Section 1.01     Definitions........................................................2

        Section 1.02     Other Definitional Provisions......................................2

        Section 1.03     Interest Calculations..............................................2

ARTICLE II        Representations and Warranties............................................3

        Section 2.01     Representations and Warranties Regarding the Servicer..............3

        Section 2.02     Representations and Warranties of the Issuer.......................4

        Section 2.03     Enforcement of Representations and Warranties......................4

ARTICLE III       Administration and Servicing of Mortgage Loans............................5

        Section 3.01     The Servicer.......................................................5

        Section 3.02     Collection of Certain Mortgage Loan Payments.......................8

        Section 3.03     Withdrawals from the Custodial Account............................11

        Section 3.04     Maintenance of Hazard Insurance; Property Protection Expenses.....13

        Section 3.05     Modification Agreements...........................................14

        Section 3.06     Trust Estate; Related Documents...................................14

        Section 3.07     Realization Upon Defaulted Mortgage Loans.........................15

        Section 3.08     Issuer and Indenture Trustee to Cooperate.........................16

        Section 3.09     Servicing Compensation; Payment of Certain Expenses by
                         Servicer..........................................................17

        Section 3.10     Annual Statement as to Compliance.................................18

        Section 3.11     Annual Servicing Report...........................................18

        Section 3.12     Access to Certain Documentation and Information Regarding
                         the Mortgage Loans................................................18

        Section 3.13     Maintenance of Certain Servicing Insurance Policies...............19

        Section 3.14     Information Required by the Internal Revenue Service and
                         Reports of Foreclosures and Abandonments of Mortgaged
                         Property..........................................................19

        Section 3.15     Optional Repurchase or Transfer of Mortgage Loans.................19

<PAGE>

        Section 3.16     Reserved..........................................................21

        Section 3.17     Pre-Funding Account...............................................21

        Section 3.18     Funding Account...................................................22

        Section 3.19     Capitalized Interest Account......................................24

        Section 3.20     Reserve Sub-Account...............................................25

        Section 3.21     Enforcement of Due-on-Sale Clauses; Assumption and
                         Modification Agreements; Certain Assignments......................25

ARTICLE IV        Servicing Certificate....................................................26

        Section 4.01     Statements to Securityholders.....................................26

        Section 4.02     Tax Returns and 1934 Act Reports..................................27

ARTICLE V         Note Payment Account.....................................................29

        Section 5.01     Note Payment Account..............................................29

ARTICLE VI        The Servicer.............................................................30

        Section 6.01     Liability of the Servicer.........................................30

        Section 6.02     Merger or Consolidation of, or Assumption of the Obligations
                         of, the Servicer..................................................30

        Section 6.03     Limitation on Liability of the Servicer and Others................31

        Section 6.04     Servicer Not to Resign............................................31

        Section 6.05     Delegation of Duties..............................................32

        Section 6.06     Payment of Indenture Trustee's and Owner Trustee's Fees and
                         Expenses; Indemnification.........................................32

ARTICLE VII       Default..................................................................33

        Section 7.01     Servicing Default.................................................33

        Section 7.02     Indenture Trustee to Act; Appointment of Successor................35

        Section 7.03     Notification to Securityholders...................................37

ARTICLE VIII      Miscellaneous Provisions.................................................37

        Section 8.01     Amendment.........................................................37

        Section 8.02     GOVERNING LAW.....................................................37

        Section 8.03     Notices...........................................................37

        Section 8.04     Severability of Provisions........................................38

<PAGE>

        Section 8.05     Third-Party Beneficiaries.........................................38

        Section 8.06     Counterparts......................................................38

        Section 8.07     Effect of Headings and Table of Contents..........................38

        Section 8.08     Termination Upon Purchase by the Servicer or Liquidation of
                         All Mortgage Loans; Partial Redemption............................38

        Section 8.09     Certain Matters Affecting the Indenture Trustee...................39

        Section 8.10     Owner Trustee Not Liable for Related Documents....................39

</TABLE>

<PAGE>

EXHIBIT A - MORTGAGE LOAN SCHEDULE          A-1

EXHIBIT B - LIMITED POWER OF ATTORNEY       B-1

EXHIBIT C - FORM OF REQUEST FOR RELEASE     C-1

<PAGE>

        This Servicing Agreement, dated as of August 28, 2002 (the "Agreement"),
is among GMAC Mortgage Corporation, as servicer (the "Servicer"), the GMACM Home
Equity  Loan Trust  2002-HE3,  as issuer  (the  "Issuer"),  and Wells Fargo Bank
Minnesota, N.A., as indenture trustee (the "Indenture Trustee").

                                   WITNESSETH:

        WHEREAS,  pursuant to the terms of the  Purchase  Agreement  (as defined
herein), GMAC Mortgage Corporation, as seller (in such capacity, "GMACM") and as
servicer and Walnut Grove Mortgage Loan Trust 2001-A,  as seller  (together with
GMACM, the "Sellers"),  will sell to Residential Asset Mortgage  Products,  Inc.
("RAMP"), as purchaser (in such capacity, the "Purchaser"), the Initial Mortgage
Loans on the Closing Date, and may sell Subsequent Mortgage Loans on one or more
Subsequent  Transfer Dates,  together with the Related  Documents on the Closing
Date and any Subsequent  Transfer  Date, and thereafter all Additional  Balances
created on or after the Cut-Off Date and any such Subsequent Transfer Date;

        WHEREAS,  RAMP, as depositor (in such capacity,  the "Depositor"),  will
sell the Initial  Mortgage Loans and assign all of its rights under the Purchase
Agreement  to the Issuer,  together  with the Related  Documents  on the Closing
Date,  and thereafter all Additional  Balances  relating  thereto  created on or
after the Cut-Off Date;

     WHEREAS,  pursuant  to the terms of the Trust  Agreement,  the Issuer  will
issue the Certificates;

     WHEREAS,  pursuant to the terms of the Indenture, the Issuer will issue the
Notes; and

        WHEREAS,  pursuant to the terms of this  Agreement,  the  Servicer  will
service the Mortgage Loans directly or through one or more Subservicers.

        NOW,  THEREFORE,   in  consideration  of  the  mutual  covenants  herein
contained, the parties hereto agree as follows:

                                       1
<PAGE>

                                   ARTICLE I

                                   Definitions

Section  1.01  Definitions.  For all  purposes  of  this  Agreement,  except  as
otherwise  expressly  provided herein or unless the context otherwise  requires,
capitalized  terms not otherwise defined herein shall have the meanings assigned
to such terms in the Definitions  contained in Appendix A to the indenture dated
as of August 28, 2002 (the  "Indenture"),  between the Issuer and the  Indenture
Trustee,  which is incorporated by reference herein. All other capitalized terms
used herein shall have the meanings specified herein.

Section 1.02   Other Definitional Provisions.
               -----------------------------

(a)            All  terms  defined  in this  Agreement  shall  have the  defined
               meanings when used in any  certificate  or other document made or
               delivered pursuant hereto unless otherwise defined therein.

(b)  As used in this Agreement and in any  certificate or other document made or
     delivered pursuant hereto or thereto,  accounting terms not defined in this
     Agreement or in any such  certificate  or other  document,  and  accounting
     terms partly defined in this Agreement or in any such  certificate or other
     document,  to the extent not defined,  shall have the  respective  meanings
     given to them under generally accepted accounting principles. To the extent
     that the  definitions of accounting  terms in this Agreement or in any such
     certificate  or other document are  inconsistent  with the meanings of such
     terms under  generally  accepted  accounting  principles,  the  definitions
     contained in this  Agreement or in any such  certificate  or other document
     shall control.

(c)            The words  "hereof,"  "herein,"  "hereunder" and words of similar
               import when used in this Agreement  shall refer to this Agreement
               as a whole and not to any particular provision of this Agreement;
               Section and Exhibit  references  contained in this  Agreement are
               references  to  Sections  and  Exhibits  in or to this  Agreement
               unless  otherwise  specified;  the term  "including"  shall  mean
               "including without limitation";  "or" shall include "and/or"; and
               the term "proceeds"  shall have the meaning  ascribed  thereto in
               the UCC.

(d)            The definitions contained in this Agreement are applicable to the
               singular  as well as the  plural  forms of such  terms and to the
               masculine  as well as the  feminine  and  neuter  genders of such
               terms.

(e)            Any  agreement,  instrument  or statute  defined or  referred  to
               herein  or  in  any  instrument  or   certificate   delivered  in
               connection  herewith means such agreement,  instrument or statute
               as from  time to  time  amended,  modified  or  supplemented  and
               includes (in the case of agreements or instruments) references to
               all  attachments  thereto and instruments  incorporated  therein;
               references to a Person are also to its permitted  successors  and
               assigns.

                                       2
<PAGE>

Section 1.03 Interest Calculations.  All calculations of interest hereunder that
are made in respect of the Principal Balance of a Mortgage Loan shall be made on
a daily basis using a 365-day year.  All  calculations  of interest on the Notes
shall be made on the basis of the actual  number of days in an  Interest  Period
and a year assumed to consist of 360-days.  The calculation of the Servicing Fee
shall be made on the basis of a 360-day year consisting of twelve 30-day months.
All dollar amounts  calculated  hereunder  shall be rounded to the nearest penny
with one-half of one penny being rounded up.

                                   ARTICLE II

                         Representations and Warranties

Section 2.01 Representations and Warranties Regarding the Servicer. The Servicer
represents  and  warrants  to the  Issuer and for the  benefit of the  Indenture
Trustee, as pledgee of the Mortgage Loans, as of the Closing Date:

(a)  the Servicer is a corporation duly organized,  validly existing and in good
     standing under the laws of the  Commonwealth  of  Pennsylvania  and has the
     corporate  power to own its assets and to transact the business in which it
     is currently  engaged.  The Servicer is duly  qualified to do business as a
     foreign  corporation and is in good standing in each  jurisdiction in which
     the  character  of the business  transacted  by it or  properties  owned or
     leased by it  requires  such  qualification  and in which the failure to so
     qualify would have a material adverse effect (not in the ordinary course of
     business) on the business,  properties,  assets, or condition (financial or
     other) of the Servicer;

(b)  the Servicer  has the power and  authority  to make,  execute,  deliver and
     perform this Agreement and all of the transactions  contemplated under this
     Agreement,  and has taken all necessary  corporate  action to authorize the
     execution,  delivery and performance of this  Agreement.  When executed and
     delivered,  this Servicing  Agreement will constitute the legal,  valid and
     binding  obligation  of the Servicer  enforceable  in  accordance  with its
     terms,  except as  enforcement  of such terms may be limited by bankruptcy,
     insolvency or similar laws affecting the  enforcement of creditors'  rights
     generally and by the availability of equitable remedies;

(c)            the  Servicer is not  required to obtain the consent of any other
               Person or any consent,  license,  approval or authorization from,
               or registration or declaration with, any governmental  authority,
               bureau or  agency in  connection  with the  execution,  delivery,
               performance, validity or enforceability of this Agreement, except
               for  such  consent,  license,   approval  or  authorization,   or
               registration  or  declaration,  as shall  have been  obtained  or
               filed, as the case may be;

(d)            the execution and delivery of this Agreement and the  performance
               of the transactions  contemplated hereby by the Servicer will not
               violate any material  provision of any existing law or regulation
               or any order or decree of any court applicable to the Servicer or
               any provision of the Articles of  Incorporation  or Bylaws of the
               Servicer,  or  constitute  a  material  breach  of  any  material
               mortgage,  indenture,  contract or other  agreement  to which the
               Servicer is a party or by which the Servicer may be bound;

                                       3
<PAGE>

(e)            no  litigation  or  administrative  proceeding  of or before  any
               court,  tribunal or governmental body is currently pending, or to
               the knowledge of the Servicer threatened, against the Servicer or
               any of its  properties  or with respect to this  Agreement or the
               Securities  which in the opinion of the Servicer has a reasonable
               likelihood  of  resulting  in a  material  adverse  effect on the
               transactions contemplated by this Agreement;

(f)            the  Servicer  is a  member  of MERS in good  standing,  and will
               comply in all material  respects with the rules and procedures of
               MERS in connection  with the servicing of the Mortgage Loans that
               are registered with MERS; and

(g)            the  servicing  of the  Mortgage  Loans  has at  all  times  been
               conducted in material  compliance  with all  applicable  federal,
               state and local laws, rules and regulations and there has been no
               material violation of any such laws, rules or regulations arising
               out of the servicing of the Mortgage Loans.

        The  foregoing   representations   and  warranties   shall  survive  any
termination of the Servicer hereunder.

Section 2.02  Representations  and  Warranties of the Issuer.  The Issuer hereby
represents  and warrants to the  Servicer  and for the benefit of the  Indenture
Trustee, as pledgee of the Mortgage Loans, as of the Closing Date:

(a)  the Issuer is a business  trust duly formed and in good standing  under the
     laws of the State of Delaware and has full power, authority and legal right
     to execute and deliver this Agreement and to perform its obligations  under
     this  Agreement,  and has  taken all  necessary  action  to  authorize  the
     execution, delivery and performance by it of this Agreement; and

(b)  the  execution  and  delivery  by the  Issuer  of  this  Agreement  and the
     performance by the Issuer of its obligations  under this Agreement will not
     violate any provision of any law or regulation  governing the Issuer or any
     order,  writ,  judgment or decree of any court,  arbitrator or governmental
     authority  or agency  applicable  to the Issuer or any of its assets.  Such
     execution,  delivery,  authentication  and performance will not require the
     authorization,  consent or approval of, the giving of notice to, the filing
     or  registration  with,  or the taking of any other action with respect to,
     any governmental  authority or agency  regulating the activities of limited
     liability   companies.   Such  execution,   delivery,   authentication  and
     performance  will not conflict with, or result in a breach or violation of,
     any  mortgage,  deed of trust,  lease or other  agreement or  instrument to
     which the Issuer is bound.

Section 2.03 Enforcement of  Representations  and Warranties.  The Servicer,  on
behalf of and subject to the direction of the Indenture  Trustee,  as pledgee of
the  Mortgage  Loans,  or the  Issuer,  shall  enforce the  representations  and
warranties of the Sellers pursuant to the Purchase Agreement. Upon the discovery
by the  Sellers,  the  Depositor,  the  Servicer,  the  Indenture  Trustee,  the
Enhancer, the Issuer, or the Custodian of a breach of any of the representations

                                       4
<PAGE>

and  warranties  made by a Seller in the Purchase  Agreement,  in respect of any
Mortgage  Loan which  materially  and  adversely  affects the  interests  of the
Securityholders  or the Enhancer,  the party  discovering such breach shall give
prompt  written  notice to the other parties (the  Custodian  being so obligated
under the Custodial  Agreement).  The Servicer shall promptly notify such Seller
of  such  breach  and  request  that,  pursuant  to the  terms  of the  Purchase
Agreement,  the Seller  either  (i) cure such  breach in all  material  respects
within 90 days from the date the  Seller  was  notified  of such  breach or (ii)
purchase  such  Mortgage Loan from the Issuer at the price and in the manner set
forth in Section  3.1(d) of the Purchase  Agreement;  provided,  that the Seller
shall,  subject to the conditions set forth in the Purchase Agreement,  have the
option to  substitute  an Eligible  Substitute  Loan or Loans for such  Mortgage
Loan.  In the event that the Seller  elects to  substitute  one or more Eligible
Substitute  Loans  pursuant to Section  3.1(d) of the  Purchase  Agreement,  the
Seller shall deliver to the Custodian or the  Servicer,  in accordance  with the
Purchase Agreement, with respect to such Eligible Substitute Loans, the original
Loan  Agreement,  the Mortgage,  and such other  documents and agreements as are
required  by the  Purchase  Agreement.  Payments  due with  respect to  Eligible
Substitute  Loans in the month of  substitution  shall not be transferred to the
Issuer and will be retained by the Servicer and remitted by the Servicer to such
Seller on the next  succeeding  Payment Date except to the extent that a payment
less than the applicable Minimum Monthly Payment has been received by the Issuer
for such month in respect of the Mortgage Loan to be removed. The Servicer shall
amend or cause to be amended the Mortgage  Loan  Schedule to reflect the removal
of such Mortgage Loan and the substitution of the Eligible  Substitute Loans and
the Servicer  shall promptly  deliver the amended  Mortgage Loan Schedule to the
Owner Trustee and Indenture Trustee.

        It is understood  and agreed that the  obligation of the Sellers to cure
such breach or purchase or substitute  for such Mortgage Loan as to which such a
breach  has  occurred  and  is  continuing  shall  constitute  the  sole  remedy
respecting  such breach  available to the Issuer and the Indenture  Trustee,  as
pledgee of the Mortgage  Loans,  against either Seller.  In connection  with the
purchase of or  substitution  for any such  Mortgage  Loan by such  Seller,  the
Issuer  shall  assign to such  Seller all of its right,  title and  interest  in
respect of the Purchase Agreement applicable to such Mortgage Loan. Upon receipt
of the Repurchase Price, or upon completion of such  substitution,  the Servicer
shall notify the Custodian,  and the Custodian shall deliver the Loan Agreements
to the  Servicer,  together  with  all  relevant  endorsements  and  assignments
prepared by the Servicer that the Indenture Trustee shall execute.

                                  ARTICLE III

                 Administration and Servicing of Mortgage Loans

Section 3.01   The Servicer.
               ------------

(a)  The Servicer  shall service and  administer  the Mortgage Loans in a manner
     generally  consistent  with the terms of the Program  Guide and in a manner
     consistent  with the terms of this  Agreement  and that shall be normal and
     usual in its general mortgage servicing  activities and consistent with the
     manner in which it  services  all  other  Mortgage  Loans in its  servicing
     portfolio with characteristics  similar to those of the Mortgage Loans. The
     Servicer  shall have full power and  authority,  acting  alone or through a

                                       5
<PAGE>

     Subservicer, to do any and all things in connection with such servicing and
     administration  which  it  may  deem  necessary  or  desirable,   it  being
     understood,   however,   that  the  Servicer  shall  at  all  times  remain
     responsible  to the Issuer  and the  Indenture  Trustee,  as pledgee of the
     Mortgage Loans, for the performance of its duties and obligations hereunder
     in accordance with the terms hereof and the Program Guide. Without limiting
     the generality of the foregoing, the Servicer shall continue, and is hereby
     authorized  and  empowered  by the Issuer  and the  Indenture  Trustee,  as
     pledgee of the Mortgage Loans, to execute and deliver, on behalf of itself,
     the Issuer,  the Indenture  Trustee or any of them, any and all instruments
     of satisfaction or cancellation, or of partial or full release or discharge
     and all other comparable instruments with respect to the Mortgage Loans and
     the  Mortgaged  Properties.  The  Issuer,  the  Indenture  Trustee  and the
     Custodian,  as  applicable,  shall  furnish the Servicer with any powers of
     attorney  and other  documents  necessary  or  appropriate  to  enable  the
     Servicer to carry out its servicing and administrative duties hereunder. In
     addition,  the  Servicer  may, at its own  discretion  and on behalf of the
     Indenture  Trustee,  obtain  credit  information  in the form of a  "credit
     score" from a credit repository. On the Closing Date, the Indenture Trustee
     shall deliver to the Servicer a limited power of attorney  substantially in
     the form of  Exhibit B hereto.  The  Servicer  is  further  authorized  and
     empowered  by the  Issuer  and the  Indenture  Trustee,  on  behalf  of the
     Noteholders  and the Indenture  Trustee,  in its own name or in the name of
     the Subservicer,  when the Servicer or the Subservicer, as the case may be,
     believes it  appropriate in its best judgment to register any Mortgage Loan
     on the  MERS(R)System,  or cause the removal from the  registration  of any
     Mortgage Loan on the  MERS(R)System,  to execute and deliver,  on behalf of
     the  Indenture  Trustee  and the  Noteholders  or any of them,  any and all
     instruments of assignment and other comparable  instruments with respect to
     such assignment or  re-recording of a Mortgage in the name of MERS,  solely
     as nominee for the Indenture  Trustee and its successors  and assigns.  Any
     expenses incurred in connection with the actions described in the preceding
     sentence shall be borne by the Servicer, with no right of reimbursement.

        If the Mortgage did not have a Lien senior to the related  Mortgage Loan
on the  related  Mortgaged  Property as of the related  Cut-Off  Date,  then the
Servicer,  in such capacity,  may not consent to the placing of a Lien senior to
that of the Mortgage on the related  Mortgaged  Property.  If the Mortgage had a
Lien senior to the related Mortgage Loan on the related Mortgaged Property as of
the related  Cut-Off Date, then the Servicer,  in such capacity,  may consent to
the refinancing of such prior senior Lien; provided, that (i) the resulting CLTV
of such  Mortgage  Loan is no higher  than the greater of the CLTV prior to such
refinancing or a 70% CLTV (or a 80% CLTV for those borrowers with a FICO "credit
score" of 720 or greater) and (ii) the interest rate for the loan evidencing the
refinanced  senior  Lien  is no  higher  than  the  interest  rate  on the  loan

                                       6
<PAGE>

evidencing  the  existing  senior  Lien  immediately  prior  to the date of such
refinancing  (meaning,  in the case of an adjustable  rate loan, a substantially
similar  index and a gross  margin no higher  than that of the  existing  senior
Lien);  provided,  however, that if the loan evidencing the existing senior Lien
prior  to the  date of  refinancing  is an  adjustable  rate  loan  and the loan
evidencing  the refinanced  senior Lien is a fixed rate loan,  then the interest
rate on the loan evidencing the refinanced  senior Lien may be up to 2.0% higher
than the  then-current  mortgage rate of the loan evidencing the existing senior
Lien and (iii) the loan evidencing the refinanced  senior Lien is not subject to
negative amortization.

        In connection with servicing the Mortgage  Loans,  the Servicer may take
reasonable  actions to encourage or effect the  termination  of Loan  Agreements
that have become dormant.

        The  relationship  of the Servicer (and of any successor to the Servicer
as servicer under this Agreement) to the Issuer under this Agreement is intended
by the parties to be that of an  independent  contractor and not that of a joint
venturer, partner or agent.

(b)  The Servicer may enter into  Subservicing  Agreements with Subservicers for
     the  servicing and  administration  of certain of the Mortgage  Loans.  The
     Servicer shall provide notice to the Indenture Trustee upon entering into a
     Subservicing Agreement. References in this Agreement to actions taken or to
     be taken by the Servicer in servicing the Mortgage  Loans  include  actions
     taken or to be taken by a  Subservicer  on behalf of the  Servicer  and any
     amount actually  received by such Subservicer in respect of a Mortgage Loan
     shall be  deemed to have  been  received  by the  Servicer  whether  or not
     actually received by the Servicer. Each Subservicing Agreement will be upon
     such terms and conditions as are not  inconsistent  with this Agreement and
     as the Servicer and the Subservicer  have agreed.  With the approval of the
     Servicer,   a  Subservicer  may  delegate  its  servicing   obligations  to
     third-party  servicers,  but such  Subservicers will remain obligated under
     the related Subservicing  Agreements.  The Servicer and the Subservicer may
     enter into  amendments to the related  Subservicing  Agreements;  provided,
     however,  that any such amendments shall not cause the Mortgage Loans to be
     serviced  in a  manner  that  would  be  materially  inconsistent  with the
     standards set forth in this  Agreement.  The Servicer  shall be entitled to
     terminate  any  Subservicing  Agreement  in  accordance  with the terms and
     conditions  thereof and without any limitation by virtue of this Agreement;
     provided,  however,  that in the event of termination  of any  Subservicing
     Agreement by the Servicer or the Subservicer, the Servicer shall either act
     as  servicer  of the  related  Mortgage  Loan or enter into a  Subservicing
     Agreement with a successor  Subservicer which will be bound by the terms of
     the related Subservicing Agreement. The Servicer shall be entitled to enter
     into any agreement with a Subservicer for  indemnification  of the Servicer
     and nothing  contained in this Agreement shall be deemed to limit or modify
     such indemnification.

        In the event that the rights, duties and obligations of the Servicer are
terminated hereunder,  any successor to the Servicer in its sole discretion may,
to the extent permitted by applicable law,  terminate the existing  Subservicing
Agreement with any  Subservicer  in accordance  with the terms of the applicable
Subservicing   Agreement  or  assume  the  terminated   Servicer's   rights  and
obligations under such subservicing arrangements which termination or assumption
will not violate the terms of such arrangements.

                                       7
<PAGE>

        As part of its servicing  activities  hereunder,  the Servicer,  for the
benefit of the Indenture Trustee,  the Enhancer and the  Securityholders,  shall
use reasonable  efforts to enforce the obligations of each Subservicer under the
related  Subservicing  Agreement,  to the extent that the non-performance of any
such  obligation  would have a material  adverse effect on a Mortgage Loan. Such
enforcement,  including,  without  limitation,  the legal prosecution of claims,
termination  of  Subservicing  Agreements  and the pursuit of other  appropriate
remedies,  shall be in such form and  carried  out to such an extent and at such
time as the Servicer, in its good faith business judgment, would require were it
the owner of the related  Mortgage  Loans.  The Servicer  shall pay the costs of
such enforcement at its own expense,  and shall be reimbursed  therefor only (i)
from a general recovery  resulting from such enforcement to the extent,  if any,
that such  recovery  exceeds all amounts due in respect of the related  Mortgage
Loan or (ii) from a specific  recovery  of costs,  expenses  or  attorneys  fees
against the party against whom such enforcement is directed.

        (c) All other documents  contained in the Mortgage File and any original
documents  relating to the Mortgage  Loans not contained in the Mortgage File or
delivered to the  Custodian,  if any, or the Indenture  Trustee are and shall be
held by the  Servicer in trust as agent for the  Indenture  Trustee on behalf of
the Noteholders.

Section 3.02   Collection of Certain Mortgage Loan Payments.
               --------------------------------------------

(a)  The Servicer shall make  reasonable  efforts to collect all payments called
     for under the terms and provisions of the Mortgage Loans, and shall, to the
     extent  such  procedures  shall  be  consistent  with  this  Agreement  and
     generally  consistent  with  the  Program  Guide,  follow  such  collection
     procedures as shall be normal and usual in its general  mortgage  servicing
     activities  and  consistent  with the  procedures  the Servicer  employs in
     servicing  all  other  Mortgage  Loans  in  the  servicing  portfolio  with
     characteristics similar to those of the Mortgage Loans. Consistent with the
     foregoing,  and without  limiting  the  generality  of the  foregoing,  the
     Servicer may in its discretion (i) waive any late payment  charge,  penalty
     interest or other fees which may be  collected  in the  ordinary  course of
     servicing a Mortgage  Loan and (ii) arrange with a Mortgagor a schedule for
     the payment of principal and interest due and unpaid;  provided,  that such
     arrangement is consistent with the Servicer's policies with respect to home
     equity mortgage loans;  and provided  further,  that  notwithstanding  such
     arrangement,  such  Mortgage  Loans  will be  included  in the  information
     regarding delinquent Mortgage Loans set forth in the Servicing Certificate.
     The  Servicer  may also  extend the Due Date for  payment due on a Mortgage
     Loan in accordance  with the Program  Guide;  provided,  however,  that the
     Servicer  shall first  determine that any such waiver or extension will not
     impair the coverage of any related insurance policy or materially adversely
     affect  the  Lien  of  the  related   Mortgage  or  the  interests  of  the
     Securityholders or the Enhancer,  and the Servicer shall not grant any such
     waiver or extension  that would have any such effect.  Consistent  with the
     terms of this Agreement, the Servicer may also:

     (i) waive,  modify or vary any term of any Mortgage Loan (including  reduce
the Credit Limit);

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<PAGE>

     (ii) consent to the postponement of strict compliance with any such term or
in any manner grant indulgence to any Mortgagor;

     (iii)  arrange with a Mortgagor a schedule for the payment of principal and
interest due and unpaid;

     (iv)  forgive  any  portion  of the  amounts  contractually  owed under the
Mortgage Loan;

               (v)  capitalize  past due amounts owed under the Mortgage Loan by
adding  any  amounts  in  arrearage  to the  existing  principal  balance of the
Mortgage  Loan (a  "Capitalization  Workout")  which will result in an increased
monthly  payment  amount,  provided  that:  (A) the amount added to the existing
principal  balance of the Mortgage Loan (the  "Capitalized  Amount") shall be no
greater than five times the Mortgagor's  current Minimum Monthly Payment amount;
and (B) the Servicer  shall not enter into a  Capitalization  Workout unless the
CLTV of the Mortgage Loan prior to the Capitalization  Workout equals or exceeds
80% and the Mortgagor has  qualified  for the  Capitalization  Workout under the
Servicer's servicing guidelines; or

               (vi) reset the  maturity  date for the Mortgage  Loan,  but in no
event  shall such  reset date  extend  beyond the end of the  Collection  Period
preceding the Final Payment Date;

               or  any  combination  of  the  foregoing,  if in  the  Servicer's
determination  such waiver,  modification,  postponement  or  indulgence  is not
materially  adverse to the  interests of the  Securityholders  or the  Enhancer;
provided, however, that the Servicer may not modify or permit any Subservicer to
modify any Mortgage Loan (including  without  limitation any  modification  that
would  change the Loan Rate,  forgive the payment of any  principal  or interest
(unless in connection  with the  liquidation  of the related  Mortgage  Loan) or
extend the final  maturity date of such Mortgage Loan) unless such Mortgage Loan
is in default or, in the judgment of the  Servicer,  such default is  reasonably
foreseeable.  The  general  terms  of  any  waiver,  modification,  forgiveness,
postponement  or  indulgence  with respect to any of the Mortgage  Loans will be
included  in the  Servicing  Certificate,  and such  Mortgage  Loans will not be
considered  "delinquent"  for the purposes of the Basic Documents so long as the
Mortgagor  complies  with the terms of such waiver,  modification,  forgiveness,
postponement or indulgence.

(b) The Servicer shall establish a Custodial Account, which shall be an Eligible
Account,  titled  "GMACM Home Equity Loan Trust Series  2002-HE3,"  in which the
Servicer  shall  deposit  or  cause to be  deposited  any  amounts  representing
payments and collections in respect of the Initial Mortgage Loans received by it
subsequent to or on the Cut-Off Date or, with respect to the Subsequent Mortgage
Loans,  the  Subsequent  Cut-Off  Date  (other  than in respect of the  payments
referred to in the  following  paragraph),  within two Business  Days  following
receipt  thereof (or otherwise on or prior to the Closing  Date),  including the
following payments and collections received or made by it (without duplication):

(i)  all payments of principal of or interest on the Mortgage  Loans received or
     advanced  by the  Servicer,  net of any  portion  of the  interest  thereof
     retained by any Subservicer as subservicing fees;

                                       9
<PAGE>

(ii) the  aggregate  Repurchase  Price of the  Mortgage  Loans  purchased by the
     Servicer pursuant to Section 3.15;

(iii)Net Liquidation  Proceeds,  net of any related  Foreclosure  Profit and all
     Subsequent Net Recovery Amounts;

(iv) all proceeds of any Mortgage Loans  repurchased by a Seller pursuant to the
     Purchase Agreement,  and all Substitution Adjustment Amounts required to be
     deposited in connection  with the  substitution  of an Eligible  Substitute
     Loan pursuant to the Purchase Agreement;

(v)  Insurance Proceeds, other than Net Liquidation Proceeds, resulting from any
     insurance policy maintained on a Mortgaged Property; and

(vi)    amounts required to be paid by the Servicer pursuant to Section 8.08;

provided,  however,  that with respect to each Collection  Period,  the Servicer
shall be  permitted  to retain  from  payments  in  respect of  interest  on the
Mortgage  Loans,  the Servicing Fee for such  Collection  Period.  The foregoing
requirements  respecting  deposits to the Custodial  Account are  exclusive,  it
being  understood that,  without  limiting the generality of the foregoing,  the
Servicer  need  not  deposit  in  the  Custodial  Account  amounts  representing
Foreclosure  Profits,  fees  (including  annual fees) or late charge  penalties,
payable by  Mortgagors  (such  amounts to be  retained as  additional  servicing
compensation in accordance with Section 3.09 hereof), or amounts received by the
Servicer for the accounts of Mortgagors for  application  towards the payment of
taxes,  insurance  premiums,  assessments  and similar  items.  In the event any
amount not required to be deposited in the  Custodial  Account is so  deposited,
the Servicer may at any time withdraw  such amount from the  Custodial  Account,
any provision herein to the contrary notwithstanding.  The Servicer shall retain
all Foreclosure Profits as additional servicing compensation.

        The  Servicer,  in its sole  discretion,  may deposit into the Custodial
Account  amounts  representing  installments  of  principal  of or  interest  on
Mortgage  Loans that were  delinquent  as of the end of any  Collection  Period,
provided  that the  Servicer  reasonably  believes  that  such  amounts  will be
recoverable from Collections on the related Mortgage Loan. If the Servicer makes
any such advances of delinquent principal and/or interest, the Servicer shall be
entitled to reimburse  itself by  withdrawing  from the  Custodial  Account,  as
provided herein, any amounts so advanced. The Servicer may cause the institution
maintaining the Custodial  Account to invest any funds in the Custodial  Account
in Permitted  Investments  (including  obligations of the Servicer or any of its
Affiliates,  if such obligations  otherwise  qualify as Permitted  Investments),
which  investments  shall mature not later than the Business Day  preceding  the
next  succeeding  Payment  Date,  and  which  investments  shall  not be sold or
disposed of prior to maturity.  In addition,  no such Permitted Investment shall
be purchased at a price in excess of par. Except as provided  above,  all income
and gain  realized  from any such  investment  shall inure to the benefit of the
Servicer and shall be subject to its  withdrawal or order from time to time. The
amount of any losses  incurred  in respect of the  principal  amount of any such
investments  shall be deposited in the Custodial  Account by the Servicer out of
its own funds immediately as realized.

                                       10
<PAGE>

(c)            The Servicer  shall  require each  Subservicer  to hold all funds
               constituting   collections   on  the  Mortgage   Loans,   pending
               remittance  thereof  to the  Servicer,  in one or  more  accounts
               meeting  the  requirements  of an  Eligible  Account,  and  shall
               require all such funds to be invested in  Permitted  Investments,
               unless all such  collections are remitted on a daily basis to the
               Servicer for deposit into the Custodial Account.

Section 3.03 Withdrawals from the Custodial  Account.  The Servicer shall,  from
time to time as provided herein,  make withdrawals from the Custodial Account of
amounts on deposit therein pursuant to Section 3.02 that are attributable to the
Mortgage Loans for the following purposes:

(a)  on each  Determination  Date,  the Servicer  shall  determine the aggregate
     amounts to be withdrawn from the Custodial  Account and applied pursuant to
     Section  3.05(a) of the  Indenture  and,  prior to close of business on the
     Business Day prior to the related Payment Date (provided, however, that the
     Indenture  Trustee  shall not be required  to invest any amounts  deposited
     into the Note Payment Account after 1:00 p.m.), shall withdraw such amounts
     from the  Custodial  Account and deposit such amounts into the Note Payment
     Account,  Funding  Account or Reserve  Sub-Account,  as  applicable,  to be
     distributed  by the  Paying  Agent in  accordance  with and in the order or
     priority  set forth in Section  3.05(a) of the  Indenture  for such Payment
     Date, in accordance with the Servicing Certificate;

(b)  to pay to itself any monthly  payments  received from the  Mortgagors,  the
     amount of such  payment  that  represents  interest  accrued on the related
     Mortgage  Loan for any  period  prior  to the  Cut-Off  Date;  prior to the
     commencement of the Rapid Amortization  Period, from Principal  Collections
     on the Mortgage  Loans,  and, if Principal  Collections are not sufficient,
     from Excess Spread,  to pay to GMACM the amount of any Additional  Balances
     as and when created during the related Collection Period, and, prior to the
     commencement  of the  Managed  Amortization  Period,  to pay to the related
     Seller the Purchase Price of any  Subsequent  Mortgage Loans on the related
     Subsequent Transfer Date;

(c)  to the extent  deposited to the Custodial  Account,  to reimburse itself or
     the related  Subservicer for previously  unreimbursed  expenses incurred in
     maintaining  individual  insurance  policies  pursuant to Section  3.04, or
     Liquidation   Expenses,   paid   pursuant  to  Section  3.07  or  otherwise
     reimbursable  pursuant  to the terms of this  Agreement  (to the extent not
     payable  pursuant to Section 3.09),  such withdrawal right being limited to
     amounts  received on particular  Mortgage  Loans (other than any Repurchase
     Price in respect  thereof) that represent  late  recoveries of the payments
     for which such advances were made, or from related Net Liquidation Proceeds
     or the proceeds of the purchase of such Mortgage Loan;

(d)  to pay to itself out of each  payment  received on account of interest on a
     Mortgage  Loan as  contemplated  by Section  3.09,  an amount  equal to the
     related  Servicing  Fee and the  Recovery  Fee (to the extent not  retained
     pursuant  to  Section  3.02 or  3.07),  and to pay to any  Subservicer  any
     subservicing fees not previously withheld by such Subservicer;

                                       11
<PAGE>

(e)     reserved;

(f)     reserved;

(g)            to the  extent  deposited  in the  Custodial  Account,  to pay to
               itself as additional  servicing  compensation any (i) interest or
               investment  income  earned on funds  deposited  in the  Custodial
               Account  that it is  entitled  to  withdraw  pursuant to Sections
               3.02(b)  and 5.01,  and (ii)  Foreclosure  Profits (to the extent
               permitted by law);

(h)            to pay to itself or the Seller, with respect to any Mortgage Loan
               or property  acquired in respect  thereof that has been purchased
               or otherwise  transferred  to such Seller,  the Servicer or other
               entity,  all  amounts  received  thereon  and not  required to be
               distributed  to  Securityholders  as of the  date  on  which  the
               related Purchase Price or Repurchase Price is determined;

(i)  to withdraw any other amount  deposited in the  Custodial  Account that was
     not required to be deposited therein pursuant to Section 3.02;

(j)            to pay to itself,  with respect to any Mortgage Loan for which it
               has made an advance of delinquent principal and/or interest,  any
               previously unreimbursed advances of such amounts theretofore made
               to the extent of receipts  of late  recoveries  of such  payments
               from the  related  Mortgagors,  out of  related  Net  Liquidation
               Proceeds or the proceeds of the purchase of such Mortgage Loans;

(k)            to  reimburse  itself for the amount of any  investment  earnings
               advanced prior to maturity pursuant to Section 3.17(c) or Section
               5.01, to the extent not reimbursed from earnings  received on the
               related investment at maturity;

(l)            at its option,  for so long as it is the sole  Certificateholder,
               to pay to itself from amounts  otherwise  required to be remitted
               to  the   Distribution   Account  in   accordance   with  Section
               3.05(a)(xvi)  of the  Indenture,  all amounts  payable to it as a
               Certificateholder on the related Payment Date, and

(m)            to reimburse  itself for advances of delinquent  principal and/or
               interest  on a  Mortgage  Loan or  other  advances  that are made
               pursuant to this Agreement  that are not  reimbursed  pursuant to
               clauses (c) or (j) of this Section 3.03.

        Since, in connection with withdrawals pursuant to clauses (c), (d), (g),
(h) and (j), the  Servicer's  entitlement  thereto is limited to  collections or
other  recoveries  on the related  Mortgage  Loan,  the Servicer  shall keep and
maintain separate accounting, on a Mortgage Loan by Mortgage Loan basis, for the
purpose of justifying any withdrawal from the Custodial Account pursuant to such
clauses.  Notwithstanding  any other provision of this  Agreement,  the Servicer
shall be entitled to reimburse itself for any previously  unreimbursed  expenses

                                       12
<PAGE>

incurred  pursuant to Section  3.07 or  otherwise  reimbursable  pursuant to the
terms  of  this  Agreement   that  the  Servicer   determines  to  be  otherwise
nonrecoverable  (except  with  respect  to any  Mortgage  Loan as to  which  the
Repurchase  Price has been paid),  by withdrawal  from the Custodial  Account of
amounts on deposit  therein  attributable  to the Mortgage Loans on any Business
Day prior to the Payment Date succeeding the date of such determination.

Section 3.04 Maintenance of Hazard Insurance;  Property Protection Expenses.  To
the extent  permitted under the related Loan Agreement and Mortgage,  and to the
extent the  Servicer  receives  notice that a hazard  insurance  policy has been
cancelled,  the Servicer  shall cause to be  maintained  for each  Mortgage Loan
hazard  insurance  naming  the  Servicer  or related  Subservicer  as loss payee
thereunder  providing  extended coverage in an amount which is at least equal to
the lesser of (i) the maximum insurable value of the improvements  securing such
Mortgage Loan from time to time or (ii) the combined  principal balance owing on
such  Mortgage Loan and any mortgage loan senior to such Mortgage Loan from time
to time; provided,  however, that such coverage may not be less than the minimum
amount required to fully compensate for any loss or damage on a replacement cost
basis.  The Servicer shall use its best efforts to monitor that hazard insurance
is  maintained  as described  in the previous  sentence in the same manner as it
would for mortgage loans in its own portfolio.  The Servicer shall also cause to
be  maintained  on  property  acquired  upon  foreclosure,  or  deed  in lieu of
foreclosure,  of any Mortgage Loan, fire insurance with extended  coverage in an
amount which is at least equal to the amount  necessary to avoid the application
of any co-insurance  clause  contained in the related hazard  insurance  policy.
Amounts collected by the Servicer under any such policies (other than amounts to
be applied to the  restoration  or repair of the related  Mortgaged  Property or
property thus acquired or amounts  released to the Mortgagor in accordance  with
the Servicer's normal servicing  procedures) shall be deposited in the Custodial
Account  to the  extent  called  for by  Section  3.02.  In cases  in which  any
Mortgaged  Property is located at any time during the life of a Mortgage Loan in
a federally  designated  flood area, to the extent  permitted  under the related
Loan Agreement and Mortgage, and to the extent the Servicer receives notice that
the related  flood  insurance  has been  cancelled,  the hazard  insurance to be
maintained for the related  Mortgage Loan shall include flood  insurance (to the
extent  available).  All such flood  insurance  shall be in amounts equal to the
lesser of (i) the amount  required to  compensate  for any loss or damage to the
related  Mortgaged  Property  on a  replacement  cost basis and (ii) the maximum
amount  of such  insurance  available  for such  Mortgaged  Property  under  the
national flood insurance program (assuming that the area in which such Mortgaged
Property is located is  participating  in such program).  The Servicer shall use
its best  efforts to monitor  such flood  insurance as described in the previous
sentence in the same manner as it would for mortgage loans in its own portfolio.
The Servicer shall be under no obligation to require that any Mortgagor maintain
earthquake or other additional insurance and shall be under no obligation itself
to maintain any such additional  insurance on property  acquired in respect of a
Mortgage Loan,  other than pursuant to such  applicable  laws and regulations as
shall at any time be in force and as shall require such additional insurance. If
the  Servicer  shall obtain and maintain a blanket  policy  consistent  with its
general mortgage servicing  activities  insuring against hazard losses on all of
the  Mortgage  Loans,  it shall  conclusively  be deemed to have  satisfied  its
obligations  as set forth in the first  sentence of this Section  3.04, it being
understood and agreed that such policy may contain a deductible clause, in which
case the Servicer  shall, in the event that there shall not have been maintained
on the related Mortgaged  Property a policy complying with the first sentence of
this Section 3.04 and there shall have been a loss which would have been covered

                                       13
<PAGE>

by such  policy,  deposit in the  Custodial  Account  the  amount not  otherwise
payable under the blanket policy  because of such  deductible  clause.  Any such
deposit by the Servicer shall be made on the last Business Day of the Collection
Period in the month in which  payments  under any such  policy  would  have been
deposited  in the  Custodial  Account.  In  connection  with its  activities  as
servicer of the Mortgage  Loans,  the Servicer  agrees to present,  on behalf of
itself,  the Issuer and the  Indenture  Trustee,  claims  under any such blanket
policy.

Section 3.05 Modification  Agreements.  The Servicer or the related Subservicer,
as the case may be,  shall be  entitled to (a)  execute  assumption  agreements,
substitution  agreements,  and instruments of satisfaction or cancellation or of
partial or full release or discharge, or any other document contemplated by this
Agreement and other  comparable  instruments  with respect to the Mortgage Loans
and with  respect to the related  Mortgaged  Properties  (and the Issuer and the
Indenture  Trustee each shall promptly  execute any such documents on request of
the  Servicer)  and (b) approve the granting of an easement  thereon in favor of
another  Person,  any alteration or demolition of such  Mortgaged  Properties or
other similar matters, if it has determined,  exercising its good faith business
judgment  in the same  manner  as it would if it were the  owner of the  related
Mortgage  Loans,  that the security for, and the timely and full  collectability
of, such  Mortgage  Loans would not be  adversely  affected  thereby.  A partial
release  pursuant to this Section  3.05 shall be permitted  only if the CLTV for
the related  Mortgage  Loan after such partial  release does not exceed the CLTV
for such Mortgage Loan as of the related  Cut-Off Date. Any fee collected by the
Servicer or the related Subservicer for processing such request will be retained
by the Servicer or such Subservicer as additional servicing compensation.

Section 3.06   Trust Estate; Related Documents.

(a)  When  required  by the  provisions  of this  Agreement,  the  Issuer or the
     Indenture  Trustee shall execute  instruments to release  property from the
     terms  of  the  Trust  Agreement,  Indenture  or  Custodial  Agreement,  as
     applicable,  or convey the Issuer's or the Indenture  Trustee's interest in
     the same,  in a manner and under  circumstances  that are not  inconsistent
     with the provisions of this Agreement.  No party relying upon an instrument
     executed by the Issuer or the Indenture Trustee as provided in this Section
     3.06 shall be bound to ascertain  the Issuer's or the  Indenture  Trustee's
     authority, inquire into the satisfaction of any conditions precedent or see
     to the application of any moneys.

(b)  If  from  time to time  any  written  assurance,  assumption  agreement  or
     substitution  agreement  or  other  similar  agreement  shall  be  executed
     pursuant  to  Section  3.05,  the  Servicer  shall  check that each of such
     documents  purports  to be an  original  executed  copy  (or a copy  of the
     original executed document if the original executed copy has been submitted
     for  recording and has not yet been  returned)  and, if so, shall file such
     documents,  and  upon  receipt  of the  original  executed  copy  from  the
     applicable  recording office or receipt of a copy thereof  certified by the
     applicable  recording office shall file such originals or certified copies,
     with the Related Documents held by the Servicer.

(c)  Upon receipt of a Request for Release from the Servicer,  substantially  in
     the form of Exhibit C hereto,  to the effect that a Mortgage  Loan has been
     the subject of a final  payment or a prepayment  in full and such  Mortgage
     Loan has been terminated or that substantially all Net Liquidation Proceeds
     that have been determined by the Servicer in its reasonable  judgment to be
     finally recoverable have been recovered,  and upon deposit to the Custodial

                                       14
<PAGE>

     Account of such final  monthly  payment,  prepayment  in full together with
     accrued and unpaid  interest to the date of such  payment  with  respect to
     such  Mortgage  Loan or,  if  applicable,  Net  Liquidation  Proceeds,  the
     Custodian  shall  promptly  release  the  Related  Documents  held  by  the
     Custodian to the Servicer. The Indenture Trustee shall execute such Related
     Documents,  along  with  such  documents  as the  Servicer  or the  related
     Mortgagor  may  request to  evidence  satisfaction  and  discharge  of such
     Mortgage  Loan,  upon request of the Servicer.  If from time to time and as
     appropriate  for the servicing or  foreclosure  of any Mortgage  Loan,  the
     Servicer  requests the Custodian to release the Related  Documents  held by
     the  Custodian  and delivers to the  Custodian a trust  receipt  reasonably
     satisfactory  to the Custodian  and signed by a Responsible  Officer of the
     Servicer,  the  Custodian  shall  release  such  Related  Documents  to the
     Servicer.  If such  Mortgage  Loans shall be  liquidated  and the Custodian
     receives a  certificate  from the Servicer as provided  above,  then,  upon
     request of the Servicer,  the Custodian  shall release the trust receipt to
     the Servicer.

Section 3.07  Realization  Upon Defaulted  Mortgage  Loans.  With respect to any
Mortgage  Loan that comes into and  continues  in default,  the  Servicer  shall
decide whether to (i) foreclose upon the related Mortgaged Property,  (ii) write
off the unpaid Principal  Balance thereof as bad debt, (iii) take a deed in lieu
of  foreclosure,  (iv) accept a short sale (a payoff of the Mortgage Loan for an
amount less than the total amount  contractually  owed in order to  facilitate a
sale of the Mortgaged Property by the Mortgagor), (v) permit a short refinancing
(a  payoff  of the  Mortgage  Loan for an  amount  less  than the  total  amount
contractually  owed in  order  to  facilitate  refinancing  transactions  by the
Mortgagor not involving a sale of the  Mortgaged  Property),  (vi) arrange for a
repayment plan,  (vii) agree to a modification in accordance with this Agreement
or (viii)  take an  unsecured  note in each case  subject  to the  rights of any
related first Lien holder;  provided,  that in connection with the foregoing, if
the Servicer has actual  knowledge  that any  Mortgaged  Property is affected by
hazardous  or toxic  wastes  or  substances  and that  the  acquisition  of such
Mortgaged Property would not be commercially reasonable, then the Servicer shall
not cause the Issuer or the Indenture Trustee to acquire title to such Mortgaged
Property  in a  foreclosure  or  similar  proceeding.  In  connection  with such
decision,  the Servicer shall follow such practices  (including,  in the case of
any default on a related senior mortgage loan, the advancing of funds to correct
such default if deemed to be  appropriate  by the Servicer) and procedures as it
shall  deem  necessary  or  advisable  and as shall be  normal  and usual in its
general mortgage  servicing  activities and as shall be required or permitted by
the  Program  Guide;  provided,  that the  Servicer  shall  not be liable in any
respect  hereunder  if the  Servicer  is  acting  in  connection  with  any such
foreclosure or attempted  foreclosure which is not completed or other conversion
in a manner  that is  consistent  with the  provisions  of this  Agreement.  The
foregoing is subject to the proviso  that the Servicer  shall not be required to
expend its own funds in connection with any foreclosure or attempted foreclosure
which is not  completed  or towards the  correction  of any default on a related
senior  mortgage loan or restoration of any property  unless it shall  determine
that such expenditure will increase the related Net Liquidation Proceeds. In the
event of a determination  by the Servicer that any such  expenditure  previously
made pursuant to this Section 3.07 will not be reimbursable from Net Liquidation
Proceeds,  the  Servicer  shall be  entitled  to  reimbursement  of its funds so
expended pursuant to Section 3.03.

                                       15
<PAGE>

        Notwithstanding any provision of this Agreement,  a Mortgage Loan may be
deemed to be finally  liquidated if  substantially  all amounts  expected by the
Servicer to be received in connection  therewith have been  received;  provided,
however, that the Servicer may continue to pursue recovery of such Mortgage Loan
and any subsequent collections, minus any Recovery Fee, with respect to any such
Mortgage  Loan shall be deposited  into the Custodial  Account.  For purposes of
determining the amount of any Net Liquidation  Proceeds,  Insurance  Proceeds or
other  unscheduled  collections,  the  Servicer  may take into  account  minimal
amounts  of  additional  receipts  expected  to be  received  or  any  estimated
additional  liquidation expenses expected to be incurred in connection with such
Mortgage Loan.

        In the  event  that  title to any  Mortgaged  Property  is  acquired  in
foreclosure or by deed in lieu of  foreclosure,  the deed or certificate of sale
shall be issued to the Indenture Trustee, which shall hold the same on behalf of
the Issuer in accordance with Section 3.13 of the Indenture. Notwithstanding any
such  acquisition of title and  cancellation of the related  Mortgage Loan, such
Mortgaged  Property  shall (except as otherwise  expressly  provided  herein) be
considered  to be an  outstanding  Mortgage  Loan held as an asset of the Issuer
until such time as such property  shall be sold.  Consistent  with the foregoing
for purposes of all calculations hereunder, so long as the related Mortgage Loan
shall be  considered  to be an  outstanding  Mortgage  Loan, it shall be assumed
that,  notwithstanding  that the  indebtedness  evidenced  by the  related  Loan
Agreement shall have been discharged,  such Loan Agreement in effect at the time
of any such acquisition of title before any adjustment  thereto by reason of any
bankruptcy or similar  proceeding or any  moratorium or similar  waiver or grace
period will remain in effect.

        Any proceeds from foreclosure  proceedings or the purchase or repurchase
of any Mortgage  Loan  pursuant to the terms of this  Agreement,  as well as any
recovery  resulting from a collection of Net  Liquidation  Proceeds or Insurance
Proceeds,  shall be  applied  in the  following  order of  priority:  first,  to
reimburse  the  Servicer  or the related  Subservicer  in  accordance  with this
Section  3.07;  second,  to pay the  Servicer  or the  related  Subservicer  all
Servicing Fees payable  therefrom;  third, to pay accrued and unpaid interest on
such  Mortgage  Loan,  at the Net Loan Rate to the  Payment  Date on which  such
amounts are to be deposited in the Note Payment Account or Distribution Account;
and fourth,  as a recovery of principal on such  Mortgage  Loan.  Any  remaining
amount shall constitute Foreclosure Profits.

Section  3.08  Issuer and  Indenture  Trustee to  Cooperate.  On or before  each
Payment Date,  the Servicer will notify the Indenture  Trustee or the Custodian,
with a copy to the Issuer,  of the termination of or the payment in full and the
termination of any Mortgage Loan during the preceding  Collection  Period.  Upon
receipt of payment in full,  the Servicer is authorized to execute,  pursuant to
the  authorization  contained in Section 3.01,  an  instrument  of  satisfaction
regarding  the related  Mortgage,  which  instrument  of  satisfaction  shall be
recorded by the Servicer if required by  applicable  law and be delivered to the
Person  entitled  thereto and to cause the removal from the  registration on the
MERS(R) System of such  Mortgage.  It is understood and agreed that any expenses
incurred in connection with such instrument of satisfaction or transfer shall be
reimbursed from amounts  deposited in the Custodial  Account.  From time to time
and as  appropriate  for the servicing or  foreclosure of any Mortgage Loan, the
Custodian  shall,  upon request of the  Servicer and delivery to the  Custodian,

                                       16
<PAGE>

with a copy to the Issuer, of a Request for Release, in the form attached hereto
as Exhibit C, signed by a Servicing Officer, release or cause to be released the
related Loan  Agreement to the Servicer.  The Issuer or Indenture  Trustee shall
promptly execute such documents, in the forms provided by the Servicer, as shall
be necessary for the prosecution of any such  proceedings or the taking of other
servicing actions. Such trust receipt shall obligate the Servicer to return such
Loan  Agreement to the  Custodian  (as  specified in such receipt) when the need
therefor by the Servicer no longer  exists,  unless the  Mortgage  Loan shall be
liquidated,  in which case, upon receipt of a certificate of a Servicing Officer
similar to that  specified  above,  such trust  receipt shall be released to the
Servicer.

        In order to  facilitate  the  foreclosure  of the Mortgage  securing any
Mortgage Loan that is in default following recordation of the related Assignment
of Mortgage in accordance  with the  provisions of the Purchase  Agreement,  the
Indenture  Trustee  or the  Issuer  shall,  if so  requested  in  writing by the
Servicer, promptly execute an appropriate assignment in the form provided by the
Servicer  to assign such  Mortgage  Loan for the  purpose of  collection  to the
Servicer (any such assignment shall  unambiguously  indicate that the assignment
is for the purpose of collection only), and, upon such assignment, such assignee
for  collection  will thereupon  bring all required  actions in its own name and
otherwise  enforce the terms of such Mortgage Loan and deposit or credit the Net
Liquidation  Proceeds,  exclusive of Foreclosure Profits,  received with respect
thereto into the Custodial  Account.  In the event that all delinquent  payments
due  under  any  such  Mortgage  Loan are paid by the  Mortgagor  and any  other
defaults are cured,  then the assignee for collection  shall  promptly  reassign
such Mortgage Loan to the Indenture  Trustee and return all Related Documents to
the place where the related Mortgage File was being maintained.

        In connection  with the Issuer's  obligation to cooperate as provided in
this Section  3.08 and all other  provisions  of this  Agreement  requiring  the
Issuer to  authorize  or permit  any  actions  to be taken  with  respect to the
Mortgage Loans, the Indenture  Trustee,  as pledgee of the Mortgage Loans and as
assignee  of record of the  Mortgage  Loans on behalf of the Issuer  pursuant to
Section 3.13 of the Indenture,  expressly  agrees,  on behalf of the Issuer,  to
take all such actions on behalf of the Issuer and to promptly execute and return
all  instruments  reasonably  required by the Servicer in connection  therewith;
provided, that if the Servicer requests a signature of the Indenture Trustee, on
behalf of the Issuer,  then the Servicer shall deliver to the Indenture  Trustee
an Officer's Certificate stating that such signature is necessary or appropriate
to enable the  Servicer to carry out its  servicing  and  administrative  duties
under this Agreement.

Section 3.09 Servicing  Compensation;  Payment of Certain  Expenses by Servicer.
The Servicer  shall be entitled to receive the Servicing Fee in accordance  with
Section 3.03 as  compensation  for its services in connection with servicing the
Mortgage Loans.  Moreover,  late payment charges and other receipts not required
to be deposited in the  Custodial  Account as specified in Section 3.02 shall be
retained by the  Servicer as  additional  servicing  compensation.  The Servicer
shall be required to pay all  expenses  incurred  by it in  connection  with its
activities  hereunder  (including  payment  of all other fees and  expenses  not
expressly  stated  hereunder  to be for  the  account  of the  Securityholders),
including the fees and expenses of the Owner Trustee,  Indenture Trustee and the
Custodian, and shall not be entitled to reimbursement therefor.

                                       17
<PAGE>

Section 3.10   Annual Statement as to Compliance.
               ---------------------------------

(a)  The  Servicer  shall  deliver to the Issuer,  the  Indenture  Trustee,  the
     Depositor and the Underwriter, with a copy to the Enhancer, beginning March
     31, 2003, and on or before March 31 of each year  thereafter,  an Officer's
     Certificate  stating  that (i) a review of the  activities  of the Servicer
     during  the  preceding  calendar  year  and of its  performance  under  any
     servicing agreements to which it is a party, including this Agreement,  has
     been made under  such  officer's  supervision  and (ii) to the best of such
     officer's knowledge, based on such review, the Servicer has complied in all
     material  respects  with the minimum  servicing  standards set forth in the
     Uniform Single  Attestation  Program for Mortgage Bankers and has fulfilled
     all of its material  obligations in all material  respects  throughout such
     year,  or, if there has been  material  noncompliance  with such  servicing
     standards or a default in the  fulfillment in all material  respects of any
     such obligation relating to this Servicing Agreement,  such statement shall
     include a description of such  noncompliance  or specify each such default,
     as the case  may be,  known  to such  officer  and the  nature  and  status
     thereof.

(b)            The  Servicer  shall  deliver  to the  Issuer  and the  Indenture
               Trustee,  with a copy  to the  Enhancer,  promptly  after  having
               obtained  knowledge  thereof,  but in no event  later  than  five
               Business Days thereafter, written notice by means of an Officer's
               Certificate  of any event  which with the giving of notice or the
               lapse of time or both, would become a Servicing Default.

Section 3.11 Annual Servicing Report. Beginning March 31, 2003, and on or before
March 31 of each year thereafter, the Servicer at its expense shall cause a firm
of nationally  recognized  independent  public  accountants (which firm may also
render other  services to the  Servicer) to furnish a report to the Issuer,  the
Indenture Trustee, the Depositor, the Underwriter,  the Enhancer and each Rating
Agency  stating its opinion  that, on the basis of an  examination  conducted by
such firm substantially in accordance with standards established by the American
Institute of Certified  Public  Accountants,  the  assertions  made  pursuant to
Section 3.10 regarding compliance with the minimum servicing standards set forth
in the Uniform  Single  Attestation  Program  for  Mortgage  Bankers  during the
preceding calendar year are fairly stated in all material  respects,  subject to
such exceptions and other qualifications that, in the opinion of such firm, such
accounting  standards  require it to report.  In rendering such statement,  such
firm may rely, as to matters  relating to the direct servicing of Mortgage Loans
by  Subservicers,  upon  comparable  statements  for  examinations  conducted by
independent  public  accountants  substantially  in  accordance  with  standards
established by the American Institute of Certified Public Accountants  (rendered
within one year of such statement) with respect to such Subservicers.

Section  3.12 Access to Certain  Documentation  and  Information  Regarding  the
Mortgage Loans.  Whenever required by statute or regulation,  the Servicer shall
provide to the  Enhancer,  any  Securityholder  upon  reasonable  request  (or a
regulator for a Securityholder) or the Indenture  Trustee,  reasonable access to
the  documentation  regarding the Mortgage Loans.  Such access shall be afforded
without  charge,  but only upon  reasonable  request and during normal  business

                                       18
<PAGE>

hours at the  offices  of the  Servicer.  Nothing  in this  Section  3.12  shall
derogate  from the  obligation  of the  Servicer to observe any  applicable  law
prohibiting  disclosure of information regarding Mortgagors,  and the failure of
the  Servicer to provide  access as provided in this Section 3.12 as a result of
such obligation shall not constitute a breach of this Section 3.12.

Section 3.13 Maintenance of Certain Servicing Insurance  Policies.  The Servicer
shall, during the term of its service as servicer,  maintain in force and effect
(i) a policy or policies  of  insurance  covering  errors and  omissions  in the
performance of its obligations as Servicer hereunder and (ii) a fidelity bond in
respect of its officers,  employees or agents.  Each such policy or policies and
fidelity  bond shall be at least equal to the coverage that would be required by
Fannie  Mae or  Freddie  Mac,  whichever  is  greater,  for  Persons  performing
servicing for mortgage loans purchased by such entity.

Section 3.14 Information Required by the Internal Revenue Service and Reports of
Foreclosures and Abandonments of Mortgaged Property.  The Servicer shall prepare
and  deliver  all  federal and state  information  reports  with  respect to the
Mortgage Loans when and as required by all  applicable  state and federal income
tax laws. In particular,  with respect to the requirement under Section 6050J of
the Code to the effect that the  Servicer or  Subservicer  shall make reports of
foreclosures and abandonments of any mortgaged  property for each year beginning
in 2002,  the  Servicer  or  Subservicer  shall file  reports  relating  to each
instance  occurring during the previous  calendar year in which the Servicer (a)
on behalf of the Issuer,  acquired an interest in any Mortgaged Property through
foreclosure or other comparable  conversion in full or partial satisfaction of a
Mortgage Loan, or (b) knew or had reason to know that any Mortgaged Property had
been  abandoned.  The reports from the Servicer or Subservicer  shall be in form
and substance  sufficient to meet the reporting  requirements imposed by Section
6050J and Section 6050H (reports relating to mortgage interest  received) of the
Code.

Section 3.15   Optional Repurchase or Transfer of Mortgage Loans.
               -------------------------------------------------

(a)            Notwithstanding  any  provision in Section 3.07 to the  contrary,
               the  Servicer,  at its  option  and in its sole  discretion,  may
               repurchase  any Mortgage  Loan that is delinquent in payment by a
               period of ninety  (90)  days or longer  for a price  equal to the
               Repurchase  Price,  provided that any such repurchase shall occur
               only during the 60-day period  commencing on the first day of the
               next calendar month.

(b)  The Servicer, at its option and in its sole discretion,  may repurchase any
     Mortgage Loan for a price equal to the Repurchase  Price (i) if the related
     Mortgage did not have a Lien senior to it as of the related  Cut-Off  Date,
     and, at the request of the related  Mortgagor,  the Servicer  agrees to the
     placement  of a Lien on the related  Mortgaged  Property  senior to that of
     such Mortgage or (ii) at the request of the Mortgagor,  the Servicer agrees
     to an increase in the Credit Limit above the Credit Limit of such  Mortgage
     Loan  as of the  related  Cut-Off  Date  or  (iii)  at the  request  of the
     Mortgagor,  the Servicer  agrees to the  refinancing  of the Lien senior to
     that of the related  Mortgage  resulting in a CLTV above the previous  CLTV
     for such Mortgage Loan.

(c)  Subject to the  conditions set forth below,  the Servicer,  upon receipt of
     written notice and direction from the Issuer, shall cause the retransfer of
     Mortgage  Loans  from the  Trust  Estate  to the  Issuer as of the close of

                                       19
<PAGE>

     business on a Payment Date (the "Transfer Date"). On the fifth Business Day
     (the "Transfer  Notice Date") prior to the Transfer Date designated in such
     notice, the Servicer shall give the Indenture Trustee,  the Rating Agencies
     and the Enhancer a notice of the proposed  retransfer  that contains a list
     of the Mortgage  Loans to be  retransferred.  Such  retransfers of Mortgage
     Loans shall be permitted upon satisfaction of the following conditions:

(i)     No Rapid Amortization Event has occurred;

(ii)                  On the Transfer  Date,  the  Overcollateralization  Amount
                      (after  giving effect to the removal from the Trust Estate
                      of the Mortgage Loans proposed to be  retransferred)  will
                      equal or exceed the Overcollateralization Target Amount;

(iii)                 The  retransfer of any Mortgage Loans on any Transfer Date
                      during the Managed  Amortization  Period shall not, in the
                      reasonable   belief  of  the   Servicer,   cause  a  Rapid
                      Amortization  Event to occur or an event which with notice
                      or  lapse  of  time  or  both  would  constitute  a  Rapid
                      Amortization Event;

(iv)                  On or before the Transfer  Date,  the Servicer  shall have
                      delivered to the Indenture Trustee a revised Mortgage Loan
                      Schedule  showing that the Mortgages Loans  transferred to
                      the  Certificateholders  are no longer  owned by the Trust
                      Estate;

(v)                   The Servicer shall represent and warrant that the Mortgage
                      Loans to be removed from the Trust Estate were selected at
                      random and the Servicer shall have received the consent of
                      the  Enhancer  as  to  the  selection  of  the  particular
                      Mortgage Loans to be removed; and

(vi)                  The Servicer shall have delivered to the Indenture Trustee
                      and the Enhancer an officer's certificate  certifying that
                      the items  set forth in  subparagraphs  (i)  through  (v),
                      inclusive, have been performed or are true and correct, as
                      the case may be. The  Indenture  Trustee may  conclusively
                      rely on such officer's certificate,  shall have no duty to
                      make  inquiries  with  regard  to the  matters  set  forth
                      therein and shall incur no liability in so relying.

        The  Servicer  shall not be permitted  to effect the  retransfer  of any
Mortgage Loan except under the conditions  specified  above.  Upon receiving the
requisite notice and direction from the Issuer,  the Servicer shall perform in a
timely manner those acts required of it, as specified above.  Upon  satisfaction
of the above  conditions,  on the  Transfer  Date the  Indenture  Trustee  shall
deliver,  or cause to be delivered,  to the Issuer a written itemization of each
Mortgage Loan being  transferred,  together with the Mortgage File for each such
Mortgage Loan, and the Indenture Trustee shall execute and deliver to the Issuer
or its  designee  such other  documents  prepared  by the  Servicer  as shall be
reasonably necessary to transfer such Mortgage Loans to the  Certificateholders.
Any such  transfer of the Trust  Estate's  right,  title and  interest in and to
Mortgage Loans shall be without  recourse,  representation  or warranty by or of
the Indenture Trustee or the Trust Estate to the Issuer or its designee.

                                       20
<PAGE>

Section 3.16   Reserved.
               --------

Section 3.17 Pre-Funding Account.

(a)  No later than the Closing Date, the Indenture  Trustee shall  establish and
     maintain on behalf of itself one or more segregated  trust accounts,  which
     shall be Eligible Accounts,  titled "Pre-Funding Account,  Wells Fargo Bank
     Minnesota,  N.A.,  as  Indenture  Trustee  for GMACM Home Equity Loan Trust
     2002-HE3" (the  "Pre-Funding  Account").  On the Closing Date,  GMACM shall
     deposit  into the  Pre-Funding  Account  an  amount  equal to the  Original
     Pre-Funded Amount from the proceeds of the sale of the Securities.  On each
     Subsequent Transfer Date, the Servicer shall instruct the Indenture Trustee
     in writing to withdraw from the Pre-Funding  Account an amount equal to the
     aggregate  Principal Balance as of the related  Subsequent  Cut-Off Date of
     the Subsequent  Mortgage  Loans to be sold to the Trust on such  Subsequent
     Transfer  Date and allocate  such  withdrawal  to amounts on deposit in the
     Pre-Funding  Account,  and to pay such  amount  to or upon the order of the
     related  Seller  upon  satisfaction  of the  conditions  set  forth in this
     Agreement, in the Purchase Agreement and in the related Subsequent Transfer
     Agreement with respect thereto.

(b)  If the  Pre-Funded  Amount  has not been  reduced  to zero at the  close of
     business on the last day of the Pre-Funding Period,  after giving effect to
     any  withdrawal  therefrom on such day, any  remaining  Pre-Funded  Amount,
     shall be deposited into the Note Payment Account and applied as a principal
     distribution on the Variable Pay Revolving Notes or, if not outstanding, to
     each  Class of Term  Notes,  on a pro rata basis in  accordance  with their
     respective Note Balances,  on the next succeeding Payment Date, except that
     the amount on deposit in the Pre-Funding up to a maximum of $50,000,  shall
     be  deposited  in the  Funding  Account and  withdrawn  pursuant to Section
     3.18(c) hereof.

(c)  The Servicer may cause the institution  maintaining the Pre-Funding Account
     to invest any funds therein in Permitted  Investments  having a maturity of
     up to 90 days or  maturing  or  otherwise  available  not  later  than  the
     Business  Day  preceding  the  related  Payment  Date on  which  funds  are
     scheduled to be withdrawn to purchase Subsequent Mortgage Loans;  provided,
     that any  investment  in an obligation  of the  institution  with which the
     Pre-Funding  Account is maintained  may mature on or before 10:30 a.m., New
     York  time,  on such  Payment  Date;  and  provided  further,  that no such
     investment  may be sold or disposed of prior to maturity.  In addition,  no
     such Permitted  Investment  shall be purchased at a price in excess of par.
     Notwithstanding  the foregoing,  in the event investment  earnings have not
     matured on any Payment Date, the amount of such earnings accrued as of such
     Payment  Date shall be advanced by the  Servicer  for deposit into the Note
     Payment  Account  (which  advance  shall be reimbursed to the Servicer from
     such  investment  earnings  at  maturity).  At any time when the  Indenture
     Trustee is maintaining the Pre-Funding Account, any request by the Servicer
     to invest funds on deposit  therein  shall be in writing,  delivered to the
     Indenture  Trustee  at or  before  10:30  a.m.,  New  York  time,  if  such
     investment  is to be made on such day. The Servicer  shall certify that the

                                       21
<PAGE>

     requested  investment is a Permitted Investment maturing at or prior to the
     time required  hereby.  Any such investment shall be registered in the name
     of the  Indenture  Trustee or its nominee,  and to the extent that any such
     investment is  certificated,  such investment  shall be maintained with the
     Indenture  Trustee at its Corporate  Trust Office.  All net income or other
     gain received from any such investment  shall be deposited into or credited
     to the Note Payment Account,  and may be withdrawn  therefrom in accordance
     with Section 3.05 of the Indenture. In no event shall the Indenture Trustee
     be liable for any  investment  losses on Permitted  Investments  held in or
     credited to the  Pre-Funding  Account,  provided that such  investments are
     made in accordance  with the provisions of this Agreement and the Indenture
     Trustee is not the obligor under the Permitted Investment.

(d)  If on any  Payment  Date  during  the  Pre-Funding  Period,  the  amount of
     Additional  Balances created during the related  Collection  Period exceeds
     the amount of Principal Collections on deposit in the Custodial Account and
     the amount on deposit in Funding Account  available to purchase  Additional
     Balances,  the  Servicer  may  withdraw  from  amounts  on  deposit  in the
     Pre-Funding  Account, to the extent available and following the purchase of
     Additional  Balances  from funds on deposit in the  Custodial  Account  and
     Funding Account,  the amount of such excess and pay such amount to GMACM as
     payment  for  such  Additional  Balances.  Section  3.18  Funding  Account.
     ---------------

(a)  No later than the Closing Date, the Indenture  Trustee shall  establish and
     maintain on behalf of itself one or more segregated  trust accounts,  which
     shall be  Eligible  Accounts,  titled  "Funding  Account,  Wells Fargo Bank
     Minnesota,  N.A.,  as  Indenture  Trustee  for GMACM Home Equity Loan Trust
     2002-HE3" (the "Funding  Account").  The Indenture  Trustee shall establish
     within the Funding Account a sub-account,  titled "Reserve Sub-Account", as
     set forth in Section  3.20 of this  Agreement.  On each Payment Date during
     the  Revolving  Period,  the Servicer  shall  withdraw  from the  Custodial
     Account  and  deposit  into  the  Funding  Account  (but  not  the  Reserve
     Sub-Account) the aggregate amount of Principal  Collections remaining after
     the purchase of all Additional Balances and/or Subsequent Mortgage Loans on
     or prior to such Payment Date.

(b)  The Servicer may cause the  institution  maintaining the Funding Account to
     invest any funds therein in Permitted  Investments  having a maturity of up
     to 90 days or maturing or otherwise  available  not later than the Business
     Day preceding  the related  Payment Date on which funds are scheduled to be
     withdrawn  to  purchase  Subsequent  Mortgage  Loans;  provided,  that  any
     investment  in an  obligation  of the  institution  with which the  Funding
     Account is maintained may mature on or before 10:30 a.m., New York time, on
     such Payment Date;  and provided  further,  that no such  investment may be
     sold or disposed  of prior to  maturity.  In  addition,  no such  Permitted
     Investment shall be purchased at a price in excess of par. At any time when
     the Indenture  Trustee is maintaining the Funding  Account,  any request by
     the  Servicer  to invest  funds on  deposit  therein  shall be in  writing,
     delivered to the Indenture  Trustee at or before 10:30 a.m., New York time,

                                       22
<PAGE>

     if such  investment  is to be made on such day. The Servicer  shall certify
     that the  requested  investment  is a Permitted  Investment  maturing at or
     prior to the time required hereby.  Any such investment shall be registered
     in the name of the Indenture Trustee or its nominee, and to the extent that
     any such investment is  certificated,  such investment  shall be maintained
     with the Indenture Trustee at its Corporate Trust Office. All net income or
     other gain received  from any such  investment  shall be deposited  into or
     credited to the Note Payment Account.

(c)  From time to time withdrawals shall be made from the Funding Account by the
     Servicer as follows:

(i)  on each Payment Date during the Revolving Period, any amounts on deposit in
     the Funding  Account,  including  Excess  Spread,  shall be  withdrawn  and
     applied, to the extent available, in the following order:

     (A)  to GMACM,  as payment for  Additional  Balances,  if any, in an amount
          equal to (1) the aggregate of all Draws during the related  Collection
          Period or (2) if the  Servicer  has applied  amounts on deposit in the
          Custodial Account representing  Principal  Collections received during
          such  Collection  Period to the purchase of Additional  Balances,  the
          excess,  if any,  of the  aggregate  of all Draws  during the  related
          Collection  Period  over  Principal  Collections  for such  Collection
          Period; and

     (B)  to each Seller,  as payment for Subsequent  Mortgage Loans, if any, in
          an amount  equal to (1) the  aggregate  Principal  Balance of all such
          Subsequent  Mortgage  Loans  purchased  from such  Seller  during  the
          related  Collection  Period or (2) if the Servicer has applied amounts
          on deposit in the Custodial Account representing Principal Collections
          for such Collection Period toward the purchase of Subsequent  Mortgage
          Loans, the excess,  if any, of the aggregate  Principal Balance of all
          such  Subsequent  Mortgage Loans  purchased from such Seller over such
          Principal Collections;

(ii) on the last Payment Date during the Revolving Period, any amounts remaining
     on deposit in the Funding  Account,  if any,  after giving effect to clause
     (i) above,  shall be deposited into the Note Payment Account for payment to
     the Noteholders pursuant to Section 3.05 of the Indenture.

                                       23
<PAGE>

Section 3.19   Capitalized Interest Account.
               ----------------------------

(a)  No later than the Closing Date, the Indenture  Trustee shall  establish and
     maintain on behalf of itself one or more segregated  trust accounts,  which
     shall be Eligible Accounts,  titled  "Capitalized  Interest Account,  Wells
     Fargo Bank Minnesota, N.A., as Indenture Trustee for GMACM Home Equity Loan
     Trust 2002-HE3" (the "Capitalized Interest Account"). The Indenture Trustee
     shall,  promptly upon receipt,  deposit in the Capitalized Interest Account
     and retain therein the Interest  Coverage Amount.  If the Indenture Trustee
     shall not have received an investment  direction from GMACM,  the Indenture
     Trustee shall invest funds on deposit in the Capitalized  Interest  Account
     in  Permitted  Investments  of the  kind  described  in  clause  (v) of the
     definition  of Permitted  Investments  having a maturity date no later than
     the next succeeding Payment Date. In addition, no such Permitted Investment
     shall be purchased at a price in excess of par.  GMACM shall be entitled to
     retain any  investment  earnings  on amounts on deposit in the  Capitalized
     Interest  Account and shall deposit into the Capitalized  Interest  Account
     the  amount  of any net loss  incurred  in  respect  of any such  Permitted
     Investment  immediately  upon realization of such loss without any right of
     reimbursement  therefor.  GMACM  shall  be the  owner  of  the  Capitalized
     Interest Account and shall report all items of income,  deduction,  gain or
     loss arising therefrom.

(b)  On each Payment Date during the Pre-Funding  Period and on the Payment Date
     immediately after the end of the Pre-Funding Period, the Indenture Trustee,
     at  the  written  direction  of  the  Servicer,  shall  withdraw  from  the
     Capitalized  Interest  Account and deposit into the Note Payment Account an
     amount equal to the Capitalized Interest Requirement for such Payment Date.

(c)  In  connection  with  each  Subsequent   Transfer  Date  occurring  in  the
     Pre-Funding  Period,  the  Servicer,  at its option,  may  recalculate  the
     Interest  Coverage  Amount taking into account the amount  remaining in the
     Pre-Funding  Account following the sale of Subsequent Mortgage Loans to the
     Trust on such date. The recomputed  Interest  Coverage  Amount shall be not
     less  than  the  amount   necessary  to  cover  the  Capitalized   Interest
     Requirement for each remaining Payment Date in the Pre-Funding Period. With
     the  written   consent  of  the  Enhancer   (which  consent  shall  not  be
     unreasonably  withheld),  on any such Subsequent Transfer Date, GMACM shall
     instruct  in writing the  Indenture  Trustee to pay to it from funds in the
     Capitalized  Interest  Account the excess of the amount on deposit  therein
     over the recomputed Interest Coverage Amount.

(d)  Upon the earlier of (i)  termination  of the Trust  Agreement in accordance
     with Section 8.01  thereof and (ii) the Payment Date  following  the end of
     the Pre-Funding  Period, any amount remaining on deposit in the Capitalized
     Interest  Account shall be withdrawn by the  Indenture  Trustee and paid to
     GMACM.

                                       24
<PAGE>

Section 3.20   Reserve Sub-Account.

        On or after the Closing Date, the Indenture  Trustee shall establish and
maintain a sub-account  within the Funding Account (the "Reserve  Sub-Account").
On each  Business Day  following  each  Determination  Date,  the  Servicer,  in
accordance with the requirements of Sections 3.05(a), 3.05(b) and 3.05(c) of the
Indenture,  shall  determine  the  amount,  if any,  to be  withdrawn  from  the
Custodial Account and deposited into the Reserve Sub-Account.  From time to time
withdrawals shall be made from the Reserve  Sub-Account by the Indenture Trustee
in the amounts and for the purposes set forth in Sections  3.05(a),  3.05(b) and
3.05(c) of the Indenture.  In addition,  if a Funding Event has occurred  during
the Managed  Amortization  Period,  any amount in the Reserve  Sub-Account  over
$2,000,000  may be applied to purchase  Subsequent  Mortgage Loans in the manner
set forth in the Purchase Agreement. Funds on deposit in the Reserve Sub-Account
may be invested in Permitted  Investments  in  accordance  with Section  3.18(b)
hereof.

Section 3.21  Enforcement of Due-on-Sale  Clauses;  Assumption and  Modification
     Agreements; Certain Assignments.

(a)            When any  Mortgaged  Property is conveyed by the  Mortgagor,  the
               Servicer or  Subservicer,  to the extent it has knowledge of such
               conveyance, shall enforce any due-on-sale clause contained in any
               Loan  Agreement  or  Mortgage,  to  the  extent  permitted  under
               applicable  law and  governmental  regulations,  but  only to the
               extent  that  such  enforcement  will  not  adversely  affect  or
               jeopardize   coverage  under  any  Required   Insurance   Policy.
               Notwithstanding the foregoing:

     (i)  the Servicer  shall not be deemed to be in default  under this Section
          3.21(a) by reason of any transfer or assumption  which the Servicer is
          restricted by law from preventing; and

     (ii) if the  Servicer  determines  that it is  reasonably  likely  that any
          Mortgagor will bring, or if any Mortgagor does bring,  legal action to
          declare invalid or otherwise avoid enforcement of a due-on-sale clause
          contained in any Loan Agreement or Mortgage, the Servicer shall not be
          required to enforce the due-on-sale clause or to contest such action.

     (b)  Subject to the Servicer's  duty to enforce any  due-on-sale  clause to
          the  extent  set  forth  in  Section  3.21(a),  in any case in which a
          Mortgaged  Property is to be conveyed to a Person by a Mortgagor,  and
          such Person is to enter into an assumption or  modification  agreement
          or supplement  to the Loan  Agreement or Mortgage  which  requires the
          signature of the  Indenture  Trustee,  or if an  instrument of release
          signed by the  Indenture  Trustee is required  releasing the Mortgagor
          from  liability on the  Mortgage  Loan,  the  Servicer is  authorized,
          subject to the requirements of the sentence next following, to execute
          and  deliver,  on  behalf of the  Indenture  Trustee,  the  assumption
          agreement  with the  Person to whom the  Mortgaged  Property  is to be
          conveyed and such  modification  agreement or  supplement  to the Loan
          Agreement  or  Mortgage  or other  instruments  as are  reasonable  or
          necessary to carry out the terms of the Loan  Agreement or Mortgage or
          otherwise to comply with any applicable laws regarding  assumptions or
          the transfer of the  Mortgaged  Property to such Person.  The Servicer
          shall  execute  and  deliver  such  documents  only  if it  reasonably
          determines  that  (i) its  execution  and  delivery  thereof  will not
          conflict  with or  violate  any terms of this  Agreement  or cause the
          unpaid  balance and interest on the Mortgage Loan to be  uncollectible

                                       25
<PAGE>

          in whole or in part, (ii) any required  consents of insurers under any
          Required Insurance Policies have been obtained and (iii) subsequent to
          the closing of the  transaction  involving the  assumption or transfer
          (A) such  transaction will not adversely affect the coverage under any
          Required Insurance Policies, (B) the Mortgage Loan will fully amortize
          over the remaining term thereof,  (C) no material term of the Mortgage
          Loan  (including  the  interest  rate on the  Mortgage  Loan)  will be
          altered nor will the term of the  Mortgage  Loan be changed and (D) if
          the seller/transferor of the Mortgaged Property is to be released from
          liability  on the Mortgage  Loan,  such release will not (based on the
          Servicer's or Subservicer's good faith determination) adversely affect
          the  collectability  of the Mortgage Loan. Upon receipt of appropriate
          instructions  from the Servicer in accordance with the foregoing,  the
          Indenture  Trustee shall execute any  necessary  instruments  for such
          assumption or  substitution of liability as directed in writing by the
          Servicer.  Upon the closing of the  transactions  contemplated by such
          documents,  the Servicer shall cause the originals or true and correct
          copies of the  assumption  agreement,  the  release  (if any),  or the
          modification  or  supplement  to the Loan  Agreement or Mortgage to be
          delivered to the Indenture Trustee or the Custodian and deposited with
          the Mortgage  File for such  Mortgage  Loan.  Any fee collected by the
          Servicer or such related  Subservicer  for entering into an assumption
          or  substitution  of  liability  agreement  will  be  retained  by the
          Servicer or such Subservicer as additional servicing compensation.

                                   ARTICLE IV

                              Servicing Certificate

Section 4.01   Statements to Securityholders.

(a)  With  respect to each Payment  Date,  on the  Business  Day  following  the
     related  Determination  Date,  the  Servicer  shall  forward the  Servicing
     Certificate to the Indenture Trustee,  and the Indenture Trustee,  pursuant
     to Section 3.26 of the  Indenture,  shall make such  Servicing  Certificate
     available to each Certificateholder,  each Noteholder,  the Depositor,  the
     Owner Trustee,  the Certificate Paying Agent and each Rating Agency, with a
     copy to the  Enhancer.  The  Servicing  Certificate  shall  set  forth  the
     following  information  as to the Notes  and  Certificates,  to the  extent
     applicable:

(i)  the aggregate amount of (a) Interest Collections, (b) Principal Collections
     (and, with respect to any Payment Date relating to the Managed Amortization
     Period, Net Principal Collections) and (c) Substitution  Adjustment Amounts
     for such Collection Period;

                                       26
<PAGE>

(ii) the amount of such  distribution  as principal to the  Noteholders  of each
     Class of Notes;

(iii)the amount of such  distribution  as  interest to the  Noteholders  of each
     Class of Notes,  the amount thereof,  if any,  payable in respect of unpaid
     Interest  Shortfalls,  and the amount of any  Interest  Shortfalls  for the
     related Payment Date;

(iv) each Policy Draw Amount,  if any,  for such Payment Date and the  aggregate
     amount of prior draws on the Policy thereunder not yet reimbursed;

(v)     the amount of such distribution to the Certificateholders;

(vi) the  amount  of any  Additional  Balance  Increase  Amount  payable  to the
     Certificateholders;

(vii)the aggregate  Principal Balance of the Mortgage Loans as of the end of the
     preceding Collection Period;

(viii) the number and aggregate  Principal  Balances of Mortgage Loans (a) as to
     which the Minimum Monthly Payment is delinquent for 30-59 days, 60-89 days,
     90-119 days, 120-149 days and 150-179 days,  respectively,  (b) the related
     Mortgaged  Property of which has been  foreclosed  upon and (c) as to which
     the related Mortgaged Property has become REO Property,  in each case as of
     the end of the preceding Collection Period;  provided,  however,  that such
     information  shall not be provided on the statements  relating to the first
     Payment Date;

(ix)                  the number and  aggregate  Principal  Balance of  Mortgage
                      Loans  repurchased  pursuant  to  Section  3.15(a)  herein
                      during such Collection Period;

(x)     the Net WAC Rate for the related Collection Period;

(xi)                  prior  to the  second  Determination  Date  following  the
                      commencement  of  the  Rapid   Amortization   Period,  the
                      aggregate amount of Additional Balances created during the
                      previous  Collection  Period  and  conveyed  to the Issuer
                      prior  to the  commencement  of  such  Rapid  Amortization
                      Period;

(xii)                 the aggregate Liquidation Loss Amounts with respect to the
                      related  Collection  Period,  the  amount  distributed  as
                      principal to Noteholders  in respect of  Liquidation  Loss
                      Amounts and the aggregate of the Liquidation  Loss Amounts
                      (minus  any  Subsequent  Net  Recovery  Amounts)  from all
                      Collection  Periods to date expressed as dollar amount and
                      as a percentage  of the aggregate  Cut-Off Date  Principal
                      Balances of the Mortgage Loans;

                                       27
<PAGE>

(xiii)                the aggregate  Note Balance of each Class of Notes and the
                      Certificate  Balance  of each  Class  of the  Certificates
                      after giving  effect to the  distribution  of principal on
                      such Payment Date;

(xiv)                 the balance of the Pre-Funding  Account,  Funding Account,
                      the Reserve  Sub-Account and Capitalized  Interest Account
                      as of the end of the preceding Collection Period;

(xv) the  Percentage  Interest  applicable  to  each  of the  Securities,  after
     application of payments made on such Payment Date;

(xvi)the Overcollateralization  Amount as of the end of the preceding Collection
     Period; and

(xvii)                the aggregate  Principal  Balance of  Subsequent  Mortgage
                      Loans transferred to the Trust Estate.

        In the case of information  furnished pursuant to clauses (ii) and (iii)
above,  the amounts shall be expressed as an aggregate dollar amount per Note or
Certificate, as applicable, with a $25,000 denomination and per Certificate with
a denomination equal to a 100% Percentage Interest.

        If a Rapid Amortization Event or a Servicing Default shall occur, on the
Business Day  following  the related  Determination  Date,  the  Servicer  shall
forward to the  Indenture  Trustee,  a statement to such effect,  including  the
nature  of  such  Rapid  Amortization  Event  or  Servicing  Default.  Upon  the
Servicer's  becoming aware of any Early  Amortization  Event, the Servicer shall
forward to the  Indenture  Trustee,  a statement to such effect,  including  the
nature of such Early  Amortization  Event.  The Indenture  Trustee,  pursuant to
Section 3.26 of the Indenture, shall deliver or cause to be delivered by mail to
each Certificateholder,  each Noteholder, the Enhancer, the Depositor, the Owner
Trustee,  the  Certificate  Paying Agent and each Rating Agency,  notice of such
Rapid  Amortization  Event,  Early  Amortization  Event  or  Servicing  Default,
including,  the nature  thereof.  Such statement may be included in, or separate
from, the regular statement sent to Securityholders.

        The Indenture  Trustee will make the Servicing  Certificate (and, at its
option,  any additional  files containing the same information in an alternative
format)  available  each  month to  Securityholders,  and other  parties to this
Agreement via the Indenture Trustee's internet website.  The Indenture Trustee's
internet website shall initially be located at "www.ctslink.com".  Assistance in
using the website can be obtained by calling the  Indenture  Trustee's  customer
service  desk at (301)  815-6600.  Parties  that  are  unable  to use the  above
distribution  options are entitled to have a paper copy mailed to them via first
class mail by  calling  the  customer  service  desk and  indicating  such.  The
Indenture  Trustee  shall  have the right to change  the way the  statements  to
Securityholders  are  distributed  in  order  to  make  such  distribution  more
convenient and/or more accessible to the above parties and the Indenture Trustee
shall provide timely and adequate  notification  to all above parties  regarding
any such  changes.  The  Indenture  Trustee  may  require  registration  and the
acceptance of a disclaimer in connection with access to its website.

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<PAGE>

(b) The Servicer  shall forward to the Indenture  Trustee any other  information
reasonably  requested by the Indenture Trustee  necessary to make  distributions
pursuant to Section 3.05 of the Indenture. Prior to the close of business on the
Business Day next succeeding each Determination Date, the Servicer shall furnish
a written  statement to the Certificate  Paying Agent and the Indenture  Trustee
setting forth the aggregate  amounts required to be withdrawn from the Custodial
Account and the Reserve Sub-Account and deposited into the Note Payment Account,
Reserve Sub-Account, Funding Account and/or Distribution Account on the Business
Day  preceding  the  related   Payment  Date  pursuant  to  Section  3.03.   The
determination  by the Servicer of such amounts shall,  in the absence of obvious
error, be deemed to be presumptively correct for all purposes hereunder, and the
Owner Trustee and the  Indenture  Trustee shall be protected in relying upon the
same  without any  independent  check or  verification.  In  addition,  upon the
Issuer's written  request,  the Servicer shall promptly furnish such information
reasonably  requested by the Issuer that is reasonably available to the Servicer
to enable the Issuer to  perform  its  federal  and state  income tax  reporting
obligations.

(c) If the Note Balance of the Variable Pay Revolving  Notes is to be reduced on
any Payment Date pursuant to the terms of the Indenture, the Servicer shall, not
later than 12:00 Noon (New York time) on the second  Business  Day prior to such
Payment Date,  deliver a written notice to the  Administrative  Agent specifying
the amount of such reduction.

Section 4.02   Tax Returns and 1934 Act Reports

(a)            The Servicer will act as the Tax Matters Partner or the agent for
               the Tax Matters  Partner  pursuant to the Trust Agreement and the
               Indenture.  The Servicer agrees to perform the obligations of the
               Servicer set forth in Section 8.02 of the Trust Agreement and the
               obligations of the Tax Matters Partner set forth in Article XI of
               the Indenture.  The Servicer will prepare and file or cause to be
               prepared and filed all tax and  information  returns of the Trust
               Estate.

(b)            The  Servicer  shall  prepare  all reports on behalf of the Trust
               Estate,  including, but not limited to, all Forms 8-K, Forms 10-K
               and,  when  applicable,  a Form 15 that are  required  under  the
               Securities  Exchange Act of 1934, as amended.  The Servicer shall
               continue to file all Forms 8-K and Forms 10-K with respect to the
               Trust  Estate  until  directed  by the  Depositor  in  writing to
               discontinue such filings.

                                   ARTICLE V

                              Note Payment Account

Section 5.01 Note Payment  Account.  The Indenture  Trustee shall  establish and
maintain an Eligible  Account  entitled  "Wells Fargo Bank  Minnesota,  N.A., as
Indenture  Trustee,  for the  benefit of the  Securityholders,  the  Certificate
Paying Agent and the Enhancer, pursuant to the Indenture, dated as of August 28,
2002,  between  GMACM Home  Equity  Loan  Trust  2002-HE3  and Wells  Fargo Bank
Minnesota,  N.A." (the "Note Payment Account"). On each Payment Date, amounts on
deposit  in the Note  Payment  Account  shall be  distributed  by the  Indenture
Trustee in  accordance  with Section  3.05 of the  Indenture.  In addition,  the
Indenture  Trustee shall deposit in the Note Payment Account,  the amount of any
Advance  received from the holder of a Variable Pay Revolving Note in accordance
with Section 2.03 of the Indenture,  or the proceeds of the sale and issuance of
a Variable Pay Revolving Note issued pursuant to the Indenture after the Closing
Date, to be applied as a distribution  of principal of the related Class of Term
Notes on its respective Targeted Final Payment Date. The Indenture Trustee shall

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<PAGE>

invest or cause the  institution  maintaining the Note Payment Account to invest
the funds therein in Permitted  Investments  selected in writing by the Servicer
and designated in the name of the Indenture  Trustee,  which  investments  shall
mature not later than the  Business  Day next  preceding  the Payment  Date next
following  the  date of such  investment  (except  that  any  investment  in the
institution with which the Note Payment Account is maintained may mature on such
Payment  Date and  shall  not be sold or  disposed  of prior  to  maturity).  In
addition,  no such Permitted  Investment shall be purchased at a price in excess
of par. All income and gain realized from any such  investment  shall be for the
benefit of the  Servicer  and shall be subject to its  withdrawal  or order from
time to  time.  The  amount  of any  losses  incurred  in  respect  of any  such
investments  shall be deposited in the Note Payment  Account by the Servicer out
of its own funds immediately as realized.

                                   ARTICLE VI

                                  The Servicer

Section  6.01  Liability  of the  Servicer.  The  Servicer  shall be  liable  in
accordance herewith only to the extent of the obligations  specifically  imposed
upon and undertaken by the Servicer herein.

Section 6.02 Merger or  Consolidation  of, or Assumption of the  Obligations of,
the Servicer. Any corporation into which the Servicer may be merged or converted
or with which it may be  consolidated,  or any  corporation  resulting  from any
merger,  conversion or  consolidation to which the Servicer shall be a party, or
any  corporation  succeeding  to the  business  of the  Servicer,  shall  be the
successor  of the  Servicer  hereunder,  without the  execution or filing of any
paper or any  further  act on the part of any of the  parties  hereto,  anything
herein to the contrary notwithstanding.

        The  Servicer  may  assign  its  rights  and  delegate  its  duties  and
obligations  under this  Agreement;  provided,  that the Person  accepting  such
assignment or delegation  shall be a Person qualified to service mortgage loans,
is  reasonably  satisfactory  to the  Enhancer  (provided,  that such consent to
assignment may not be unreasonably withheld), is willing to service the Mortgage
Loans and executes  and delivers to the Issuer (with a copy to the  Enhancer) an
agreement,  in form and substance reasonably  satisfactory to the Enhancer, that
contains an  assumption by such Person of the due and punctual  performance  and
observance  of each  covenant  and  condition to be performed or observed by the
Servicer under this Agreement;  and provided further,  that no Rating Event will
occur as a result of such assignment and delegation (as evidenced by a letter to
such  effect from each  Rating  Agency),  if  determined  without  regard to the
Policy; and provided further, that the Owner Trustee shall receive an Opinion of
Counsel to the effect  that such  assignment  or  delegation  will not cause the
Issuer  to be  treated  as an  association  (or a  publicly-traded  partnership)
taxable as a corporation for federal income tax purposes.

                                       30
<PAGE>

Section 6.03  Limitation  on  Liability of the Servicer and Others.  Neither the
Servicer  nor any of the  directors  or officers or  employees  or agents of the
Servicer  shall be under any  liability to the Issuer,  the Owner  Trustee,  the
Indenture Trustee or the  Securityholders for any action taken or for refraining
from  the  taking  of any  action  in good  faith  pursuant  to this  Agreement;
provided,  however,  that this  provision  shall not protect the Servicer or any
such Person against any liability  that would  otherwise be imposed by reason of
its willful misfeasance, bad faith or gross negligence in the performance of its
duties  hereunder or by reason of its reckless  disregard of its obligations and
duties hereunder.  The Servicer and any director or officer or employee or agent
of the  Servicer  may rely in good faith on any document of any kind prima facie
properly  executed and submitted by any Person  respecting  any matters  arising
hereunder.  The Servicer  and any  director,  officer,  employee or agent of the
Servicer shall be indemnified by the Issuer and held harmless  against any loss,
liability or expense  incurred in connection  with any legal action  relating to
this Agreement or the Securities, including any amount paid to the Owner Trustee
or the  Indenture  Trustee  pursuant  to Section  6.06(b),  other than any loss,
liability or expense  related to any specific  Mortgage  Loan or Mortgage  Loans
(except as any such loss,  liability or expense shall be otherwise  reimbursable
pursuant  to this  Agreement)  and any loss,  liability  or expense  incurred by
reason  of its  willful  misfeasance,  bad  faith  or  gross  negligence  in the
performance  of its duties  hereunder or by reason of its reckless  disregard of
its  obligations  and  duties  hereunder.  The  Servicer  shall not be under any
obligation  to appear  in,  prosecute  or defend  any legal  action  that is not
incidental to its duties to service the Mortgage  Loans in accordance  with this
Agreement,  and that in its opinion may involve it in any expense or  liability;
provided,  however,  that the Servicer may in its sole discretion  undertake any
such  action  that  it may  deem  necessary  or  desirable  in  respect  of this
Agreement,  the rights and duties of the parties hereto and the interests of the
Securityholders.  In such event, the reasonable legal expenses and costs of such
action  and any  liability  resulting  therefrom  shall be  expenses,  costs and
liabilities  of the Issuer,  and the Servicer shall be entitled to be reimbursed
therefor.  The Servicer's right to indemnity or  reimbursement  pursuant to this
Section  6.03 shall  survive any  resignation  or  termination  of the  Servicer
pursuant to Section 6.04 or 7.01 with respect to any losses,  expenses, costs or
liabilities  arising prior to such  resignation or termination  (or arising from
events that occurred prior to such resignation or termination).

Section 6.04 Servicer Not to Resign.  Subject to the provisions of Section 6.02,
the Servicer shall not resign from the  obligations and duties hereby imposed on
it except (a) upon  determination  that the  performance  of its  obligations or
duties  hereunder  are no  longer  permissible  under  applicable  law or are in
material conflict by reason of applicable law with any other activities  carried
on by it or its subsidiaries or Affiliates, the other activities of the Servicer
so causing such a conflict being of a type and nature carried on by the Servicer
or its  subsidiaries  or  Affiliates  at the date of this  Agreement or (b) upon
satisfaction of the following conditions: (i) the Servicer shall have proposed a
successor  servicer to the Issuer and the Indenture  Trustee in writing and such
proposed  successor  servicer  is  reasonably  acceptable  to  the  Issuer,  the
Indenture Trustee and the Enhancer; (ii) each Rating Agency shall have delivered
a letter to the Issuer,  the Enhancer  and the  Indenture  Trustee  prior to the
appointment of the successor  servicer stating that the proposed  appointment of
such successor  servicer as Servicer hereunder will not cause a Rating Event, if
determined  without  regard to the  Policy;  and (iii) such  proposed  successor
servicer is reasonably  acceptable to the Enhancer,  as evidenced by a letter to
the  Issuer  and  the  Indenture  Trustee;  provided,   however,  that  no  such
resignation by the Servicer shall become effective until such successor servicer

                                       31
<PAGE>

or, in the case of (a) above, the Indenture Trustee,  as pledgee of the Mortgage
Loans,  shall have  assumed  the  Servicer's  responsibilities  and  obligations
hereunder or the Indenture Trustee, as pledgee of the Mortgage Loans, shall have
designated  a successor  servicer in  accordance  with  Section  7.02.  Any such
resignation  shall not relieve the  Servicer  of  responsibility  for any of the
obligations  specified in Sections 7.01 and 7.02 as obligations that survive the
resignation or termination of the Servicer.  Any such  determination  permitting
the  resignation  of the Servicer shall be evidenced by an Opinion of Counsel to
such effect delivered to the Indenture Trustee and the Enhancer.

Section  6.05  Delegation  of Duties.  In the ordinary  course of business,  the
Servicer at any time may  delegate  any of its duties  hereunder  to any Person,
including  any  of its  Affiliates,  that  agrees  to  conduct  such  duties  in
accordance with standards  comparable to those with which the Servicer  complies
pursuant to Section 3.01. Such delegation  shall not relieve the Servicer of its
liabilities  and  responsibilities  with  respect  to such  duties and shall not
constitute a resignation within the meaning of Section 6.04.

Section 6.06  Payment  of  Indenture  Trustee's  and  Owner  Trustee's  Fees and
     Expenses; Indemnification.

(a)  After the Closing  Date,  the Servicer  covenants  and agrees to pay to the
     Owner  Trustee,  the Indenture  Trustee and any co-trustee of the Indenture
     Trustee or the Owner Trustee from time to time, and the Owner Trustee,  the
     Indenture  Trustee and any such co-trustee shall be entitled to, reasonable
     compensation  (which shall not be limited by any provision of law in regard
     to the  compensation  of a trustee of an express  trust and, in the case of
     the  Indenture  Trustee,  for so long as GMAC Mortgage  Corporation  is the
     Servicer  shall  be as  set  forth  in the  letter  agreement  between  the
     Indenture  Trustee and the  Servicer  dated as of August 28,  2002) for all
     services  rendered by each of them in the  execution of the trusts  created
     under  the  Trust  Agreement  and the  Indenture  and in the  exercise  and
     performance  of any of the powers and duties  under the Trust  Agreement or
     the  Indenture,  as the case may be, of the Owner  Trustee,  the  Indenture
     Trustee and any  co-trustee,  and the Servicer  will pay or  reimburse  the
     Indenture  Trustee  and any  co-trustee  upon  request  for all  reasonable
     expenses,  disbursements  and  advances  incurred or made by the  Indenture
     Trustee or any co-trustee in accordance  with any of the provisions of this
     Agreement,  the Indenture or the Trust  Agreement  except any such expense,
     disbursement  or  advance  as  may  arise  from  its  negligence,   willful
     misfeasance  or bad faith.  In addition,  the  Indenture  Trustee  shall be
     entitled  to be  reimbursed  from the  Servicer  for all  reasonable  costs
     associated  with the transfer of servicing  from the  predecessor  servicer
     pursuant to Section 7.02  hereunder,  including,  without  limitation,  any
     reasonable costs or expenses  associated with the complete  transfer of all
     servicing  data and the  completion,  correction  or  manipulation  of such
     servicing  data as may be required by the Indenture  Trustee to correct any
     errors or  insufficiencies in the servicing data or otherwise to enable the
     Indenture Trustee to service the Mortgage Loans properly and effectively.

(b)  The  Servicer  agrees to  indemnify  the  Indenture  Trustee  and the Owner
     Trustee for, and to hold the Indenture  Trustee and the Owner  Trustee,  as
     the case may be, harmless against,  any loss, liability or expense incurred

                                       32
<PAGE>

     without  negligence,  bad faith or  willful  misconduct  on the part of the
     Indenture Trustee or the Owner Trustee, as the case may be, arising out of,
     or in connection with, the acceptance and  administration of the Issuer and
     the assets thereof,  including the costs and expenses (including reasonable
     legal fees and expenses) of defending  the  Indenture  Trustee or the Owner
     Trustee,  as the case may be,  against  any  claim in  connection  with the
     exercise  or  performance  of any of its  powers or duties  under any Basic
     Document; provided that:

(i)                   with respect to any such claim,  the Indenture  Trustee or
                      Owner  Trustee,  as the case may be,  shall have given the
                      Servicer   written  notice  thereof   promptly  after  the
                      Indenture  Trustee or Owner  Trustee,  as the case may be,
                      shall have actual knowledge thereof;

(ii)                  while  maintaining  control  over  its  own  defense,  the
                      Issuer,  the Indenture  Trustee or Owner  Trustee,  as the
                      case may be, shall  cooperate  and consult  fully with the
                      Servicer in preparing such defense; and

(iii)                 notwithstanding   anything  in  this   Agreement   to  the
                      contrary,  the Servicer shall not be liable for settlement
                      of  any  claim  by the  Indenture  Trustee  or  the  Owner
                      Trustee,  as the case may be,  entered  into  without  the
                      prior consent of the Servicer.

No  termination  of this  Agreement or  resignation  or removal of the Indenture
Trustee  shall  affect  the  obligations  created  by this  Section  6.06 of the
Servicer to indemnify  the  Indenture  Trustee and the Owner  Trustee  under the
conditions and to the extent set forth herein.

        Notwithstanding  the  foregoing,  the  indemnification  provided  by the
Servicer in this  Section  6.06(b)  shall not pertain to any loss,  liability or
expense of the Indenture  Trustee or the Owner Trustee,  including the costs and
expenses of defending itself against any claim,  incurred in connection with any
actions taken by the Indenture  Trustee or the Owner Trustee at the direction of
the Noteholders or Certificateholders, as the case may be, pursuant to the terms
of this Agreement.

                                  ARTICLE VII

                                     Default

Section 7.01   Servicing Default.
               -----------------

(a) If a Servicing  Default shall occur and be  continuing,  then,  and in every
such case,  so long as a Servicing  Default  shall not have been remedied by the
Servicer, either the Issuer, the Indenture Trustee, upon actual knowledge of the
occurrence of a Servicing  Default and with the consent of the Enhancer,  or the
Enhancer,  by notice then given in writing to the  Servicer,  the Issuer and the
Indenture  Trustee,  may  terminate  all of the  rights and  obligations  of the
Servicer  as  servicer  under  this  Agreement  other  than its right to receive
servicing  compensation  and expenses for servicing the Mortgage Loans hereunder
during any period  prior to the date of such  termination,  and the Issuer,  the
Enhancer  or the  Indenture  Trustee  (with the  consent of the  Enhancer),  may
exercise any and all other remedies  available at law or equity. Any such notice
to the Servicer shall also be given to each Rating Agency,  the Enhancer and the

                                       33
<PAGE>

Issuer.  On or after the receipt by the  Servicer of such  written  notice,  all
authority and power of the Servicer under this  Agreement,  whether with respect
to the  Securities  or the  Mortgage  Loans or  otherwise,  shall pass to and be
vested in the Indenture  Trustee,  subject to Section 7.02 hereof, as pledgee of
the  Mortgage  Loans,  pursuant to and under this  Section  7.01;  and,  without
limitation,  the Indenture Trustee is hereby authorized and empowered to execute
and deliver, on behalf of the Servicer,  as  attorney-in-fact or otherwise,  any
and all documents and other instruments,  and to do or accomplish all other acts
or things  necessary  or  appropriate  to effect the  purposes of such notice of
termination,  whether to complete the transfer and  endorsement of each Mortgage
Loan and related documents, or otherwise.  The Servicer agrees to cooperate with
the Issuer, the Enhancer and Indenture Trustee, as the case may be, in effecting
the termination of the  responsibilities  and rights of the Servicer  hereunder,
including,  without  limitation,  the transfer to the Indenture  Trustee for the
administration  by it of all cash amounts  relating to the  Mortgage  Loans that
shall  at the  time be held by the  Servicer  and to be  deposited  by it in the
Custodial Account,  or that have been deposited by the Servicer in the Custodial
Account or  thereafter  received by the  Servicer  with  respect to the Mortgage
Loans,  the recordation of Assignments of Mortgages to the Indenture  Trustee if
MERS is not the mortgagee of a Mortgage  Loan,  and the delivery of the Mortgage
Files in its  possession  to the Indenture  Trustee.  All  reasonable  costs and
expenses (including, but not limited to, attorneys' fees) incurred in connection
with amending this Agreement to reflect such succession as Servicer  pursuant to
this  Section  7.01  shall  be  paid  by  the  predecessor  Servicer  (or if the
predecessor  Servicer  is the  Indenture  Trustee,  the initial  Servicer)  upon
presentation of reasonable documentation of such costs and expenses.

(b) Notwithstanding any termination of the activities of the Servicer hereunder,
the  Servicer  shall be  entitled to receive,  out of any late  collection  of a
payment on a Mortgage  Loan  which was due prior to the notice  terminating  the
Servicer's rights and obligations hereunder and received after such notice, that
portion to which the Servicer would have been entitled pursuant to Sections 3.03
and 3.09 as well as its Servicing Fee in respect thereof,  and any other amounts
payable to the Servicer  hereunder the  entitlement  to which arose prior to the
termination of its activities hereunder.

        Notwithstanding  the  foregoing,  a delay in or failure  of  performance
under  clause (i) or (ii) of the  definition  of  Servicing  Default,  after the
applicable  grace periods  specified  therein,  shall not constitute a Servicing
Default if such delay or  failure  could not be  prevented  by the  exercise  of
reasonable  diligence by the Servicer and such delay or failure was caused by an
act of God or the public  enemy,  acts of declared  or  undeclared  war,  public
disorder,  rebellion  or  sabotage,  epidemics,  landslides,   lightning,  fire,
hurricanes,  earthquakes, floods or similar causes. The preceding sentence shall
not relieve the Servicer from using reasonable efforts to perform its respective
obligations in a timely manner in accordance  with the terms of this  Agreement.
The  Servicer  shall  provide  the  Indenture  Trustee,  the  Enhancer  and  the
Securityholders  with notice of any such failure or delay by it, together with a
description  of its efforts to so perform its  obligations.  The Servicer  shall
immediately notify the Indenture Trustee, the Enhancer and the Issuer in writing
of any Servicing Default.

                                       34
<PAGE>

Section 7.02   Indenture Trustee to Act; Appointment of Successor.
               --------------------------------------------------

(a)  On and  after  the time the  Servicer  receives  a  notice  of  termination
     pursuant to Section 7.01 or sends a notice  pursuant to Section  6.04,  the
     Indenture  Trustee as pledgee of the Mortgage Loans shall itself become, or
     shall appoint an affiliate of the Indenture Trustee to become the successor
     in all  respects  to the  Servicer in its  capacity as servicer  under this
     Agreement and the  transactions  set forth or provided for herein and shall
     immediately  assume all of the obligations of the Servicer to make advances
     on Mortgage  Loans under  Section  3.02(b) and will be subject to all other
     responsibilities,  duties and  liabilities  relating  thereto placed on the
     Servicer by the terms and provisions hereof as soon as practicable,  but in
     no event later than 90 days after the Indenture  Trustee becomes  successor
     servicer.  During  such 90 day  period,  the  Indenture  Trustee,  with the
     consent of the  Enhancer,  may require the  Servicer  being  terminated  to
     continue  to perform  such  servicing  responsibilities  (other than making
     advances on the  Mortgage  Loans under  Section  3.02(b)) as the  Indenture
     Trustee deems  appropriate.  In such event,  the Servicer being  terminated
     shall provide such services as directed by the Indenture  Trustee until the
     earliest  of the date the  Indenture  Trustee  notifies  such  Servicer  to
     discontinue providing such services, the date on which a successor servicer
     or the  Indenture  Trustee  has assumed  all  responsibilities,  duties and
     liabilities  of the  Servicer  hereunder  or the  expiration  of the 90 day
     period.  The Servicer  shall be entitled to the Servicing Fee hereunder for
     any period  during which the Servicer is obligated to provide such services
     as if no  termination  of  the  Servicer  had  occurred.  Nothing  in  this
     Agreement or in the Trust Agreement shall be construed to permit or require
     the Indenture  Trustee to (i) succeed to the  responsibilities,  duties and
     liabilities  of the initial  Servicer in its  capacity as Seller  under the
     Purchase  Agreement,  (ii) be  responsible  or  accountable  for any act or
     omission of the Servicer  prior to the issuance of a notice of  termination
     hereunder, (iii) require or obligate the Indenture Trustee, in its capacity
     as successor Servicer,  to purchase,  repurchase or substitute any Mortgage
     Loan, (iv) fund any Additional  Balances with respect to any Mortgage Loan,
     (v) fund any  losses  on any  Permitted  Investment  directed  by any other
     Servicer,  or (vi) be responsible for the representations and warranties of
     the Servicer.  As  compensation  therefor,  the Indenture  Trustee shall be
     entitled to such  compensation  as the Servicer would have been entitled to
     hereunder if no such notice of termination had been given.  Notwithstanding
     the  foregoing,  if  the  Indenture  Trustee  is  (x)  unwilling  to act as
     successor  Servicer  itself or to appoint an affiliate to become  successor
     Servicer, or (y) legally unable so to act, the Indenture Trustee as pledgee
     of the  Mortgage  Loans may (in the  situation  described in clause (x)) or
     shall (in the  situation  described  in clause  (y))  appoint or petition a
     court of competent jurisdiction to appoint any established housing and home
     finance  institution,  bank or other  mortgage loan  servicer  having a net
     worth  of not  less  than  $10,000,000  as the  successor  to the  Servicer
     hereunder  in the  assumption  of all or any part of the  responsibilities,
     duties or liabilities of the Servicer  hereunder;  provided,  that any such
     successor Servicer shall be acceptable to the Enhancer, as evidenced by the
     Enhancer's prior written  consent,  which consent shall not be unreasonably
     withheld;  and provided further, that the appointment of any such successor
     Servicer will not result in a Rating Event, if determined without regard to
     the Policy.  Pending  appointment of a successor to the Servicer hereunder,
     unless the  Indenture  Trustee  is  prohibited  by law from so acting,  the
     Indenture  Trustee  itself shall act or appoint an affiliate to act in such
     capacity  as  provided  above.  In  connection  with such  appointment  and
     assumption,  the successor shall be entitled to receive compensation out of
     payments on Mortgage Loans in an amount equal to the compensation  that the

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<PAGE>

     Servicer would  otherwise  have received  pursuant to Section 3.09 (or such
     other  compensation  as the  Indenture  Trustee  and such  successor  shall
     agree).  The  appointment  of a  successor  Servicer  shall not  affect any
     liability  of the  predecessor  Servicer  that may have  arisen  under this
     Agreement prior to its termination as Servicer (including the obligation to
     purchase  Mortgage  Loans  pursuant to Section 3.01, to pay any  deductible
     under an insurance  policy  pursuant to Section  3.04 or to  indemnify  the
     Indenture  Trustee  pursuant  to  Section  6.06),  nor shall any  successor
     Servicer be liable for any acts or omissions of the predecessor Servicer or
     for any breach by such Servicer of any of its representations or warranties
     contained  herein or in any related  document or  agreement.  The Indenture
     Trustee and such  successor  shall take such action,  consistent  with this
     Agreement  and the  requirements  (including  any notice  requirements)  of
     applicable  law, as shall be necessary to effectuate  any such  succession.
     Notwithstanding  the foregoing,  the Indenture Trustee,  in its capacity as
     successor  Servicer,  shall not be responsible  for the lack of information
     and/or  documents that it cannot obtain through  reasonable  efforts or for
     failing to take any action that the Indenture Trustee is legally prohibited
     from taking by applicable law.

(b)  Any successor, including the Indenture Trustee, to the Servicer as servicer
     shall during its term as Servicer  (i)  continue to service and  administer
     the Mortgage Loans for the benefit of the Securityholders, (ii) maintain in
     force a policy or policies of insurance  covering  errors and  omissions in
     the  performance of its  obligations  as Servicer  hereunder and a fidelity
     bond in respect of its officers, employees and agents to the same extent as
     the Servicer is so required  pursuant to Section 3.13 and (iii) be bound by
     the terms of the Insurance Agreement.

(c)  Any  successor  Servicer,  including the  Indenture  Trustee,  shall not be
     deemed  in  default  or to  have  breached  its  duties  hereunder  if  the
     predecessor  Servicer  shall fail to deliver  any  required  deposit to the
     Custodial  Account  or  otherwise  cooperate  with any  required  servicing
     transfer or succession hereunder.

(d)  In  connection   with  the  termination  or  resignation  of  the  Servicer
     hereunder,  either (i) the  successor  Servicer,  including  the  Indenture
     Trustee if the  Indenture  Trustee is acting as successor  Servicer,  shall
     represent  and  warrant  that it is a member of MERS in good  standing  and
     shall  agree  to  comply  in all  material  respects  with  the  rules  and
     procedures of MERS in connection  with the servicing of the Mortgage  Loans
     that are registered with MERS, in which case the predecessor Servicer shall
     cooperate with the successor Servicer in causing MERS to revise its records
     to reflect the transfer of servicing to the successor Servicer as necessary
     under MERS' rules and regulations,  or (ii) the predecessor  Servicer shall
     cooperate  with the  successor  Servicer  in causing  MERS to  execute  and
     deliver an  assignment  of Mortgage  in  recordable  form to  transfer  the
     Mortgage from MERS to the Indenture Trustee and to execute and deliver such
     other  notices,  documents  and other  instruments  as may be  necessary or
     desirable to effect a transfer of such  Mortgage  Loan or servicing of such
     Mortgage  Loan  on  the  MERS(R)System  to  the  successor  Servicer.   The

                                       36
<PAGE>

     predecessor Servicer shall file or cause to be filed any such assignment in
     the appropriate  recording office. The predecessor  Servicer shall bear any
     and all fees of MERS,  costs of preparing any assignments of Mortgage,  and
     fees and costs of filing any  assignments  of Mortgage that may be required
     under  this  subsection  (d).  The  successor  Servicer  shall  cause  such
     assignment  to be  delivered  to the  Indenture  Trustee  or the  Custodian
     promptly upon receipt of the original with evidence of recording thereon or
     a copy certified by the public  recording  office in which such  assignment
     was recorded.

Section  7.03  Notification  to  Securityholders.  Upon  any  termination  of or
appointment  of a successor  to the  Servicer  pursuant  to this  Article VII or
Section 6.04, the Indenture  Trustee shall give prompt written notice thereof to
the Securityholders, the Enhancer, the Issuer and each Rating Agency.

                                  ARTICLE VIII

                            Miscellaneous Provisions

Section 8.01  Amendment.  This Agreement may be amended from time to time by the
parties  hereto;  provided,  that any such  amendment  shall be accompanied by a
letter from each Rating Agency to the effect that such amendment will not result
in a Rating Event,  if  determined  without  regard to the Policy;  and provided
further, that the Enhancer and the Indenture Trustee shall consent thereto.

Section 8.02 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

Section 8.03 Notices. All demands, notices and communications hereunder shall be
in writing and shall be deemed to have been duly given if  personally  delivered
at or mailed by certified mail, return receipt requested,  to (a) in the case of
the Servicer, 100 Witmer Road, Horsham,  Pennsylvania 19044, Attention:  Anthony
Renzi,  (b) in the case of the Enhancer,  MBIA Insurance  Corporation,  113 King
Street,  Armonk,  New York 10504:  Attention:  Insured  Portfolio  Management  -
Structured  Finance (GMACM Home Equity Loan Trust 2002-HE3),  (c) in the case of
Moody's,  Home Mortgage Loan Monitoring Group, 4th Floor, 99 Church Street,  New
York, New York 10001, (d) in the case of Standard & Poor's, 55 Water Street, New
York, New York 10004, Attention: Residential Mortgage Surveillance Group, (e) in
the case of Fitch, One State Street Plaza, New York, New York 10004,  Attention:
Residential  Mortgage  Group,  (f) in the case of the Owner Trustee,  Wilmington
Trust  Company,  Rodney  Square  North,  1100 North Market  Street,  Wilmington,
Delaware  19890-0001  and (g) in the case of the Issuer,  GMACM Home Equity Loan
Trust  2002-HE3,  c/o the Owner  Trustee at the  address set forth in clause (e)
above,  and (g) in the case of the Indenture  Trustee,  at the  Corporate  Trust
Office of the  Indenture  Trustee;  or,  with  respect to each of the  foregoing
Persons,  at such  other  address  as shall be  designated  by such  Person in a
written notice to the other foregoing Persons.  Any notice required or permitted

                                       37
<PAGE>

to be mailed to a  Securityholder  shall be given by first class  mail,  postage
prepaid,  at the address of such Securityholder as shown in the Note Register or
Certificate  Register,  as the case may be. Any notice so mailed within the time
prescribed in this Agreement  shall be  conclusively  presumed to have been duly
given,  whether or not the related  Securityholder  receives  such  notice.  Any
notice or other  document  required to be delivered  or mailed by the  Indenture
Trustee to any Rating  Agency shall be given on a reasonable  efforts  basis and
only as a matter of courtesy and accommodation,  and the Indenture Trustee shall
have no  liability  for  failure to deliver  any such  notice or document to any
Rating Agency.

Section 8.04  Severability  of Provisions.  If any one or more of the covenants,
agreements,  provisions  or terms  of this  Agreement  shall  be for any  reason
whatsoever held invalid,  then such covenants,  agreements,  provisions or terms
shall be deemed severable from the remaining covenants,  agreements,  provisions
or  terms  of  this  Agreement  and  shall  in no way  affect  the  validity  or
enforceability  of the other  provisions of this  Agreement or the Securities or
the rights of the Securityholders.

Section  8.05  Third-Party  Beneficiaries.  This  Agreement  shall  inure to the
benefit of and be binding  upon the parties  hereto,  the  Securityholders,  the
Enhancer,  the Owner  Trustee  and their  respective  successors  and  permitted
assigns.  Except as otherwise provided in this Agreement,  no other Person shall
have any right or obligation hereunder.

Section  8.06  Counterparts.  This  instrument  may be executed in any number of
counterparts,  each of which so executed shall be deemed to be an original,  but
all such counterparts shall together constitute but one and the same instrument.

Section 8.07 Effect of Headings  and Table of Contents.  The Article and Section
headings herein and the Table of Contents are for convenience only and shall not
affect the construction hereof.

Section 8.08  Termination  Upon Purchase by the Servicer or  Liquidation  of All
Mortgage Loans; Partial Redemption.

(a)  The respective obligations and responsibilities of the Servicer, the Issuer
     and the Indenture  Trustee  created  hereby shall  terminate  upon the last
     action  required to be taken by the Issuer  pursuant to the Trust Agreement
     and by the  Indenture  Trustee  pursuant  to the  Indenture  following  the
     earlier of:

(i)  the date on or  before  which  the  Indenture  or the  Trust  Agreement  is
     terminated, or

(ii) the purchase by the Servicer from the Issuer of all Mortgage  Loans and REO
     Property in accordance with Section 8.08(b).

(b)  The  Servicer  shall have the right to purchase  from the Issuer all of the
     Mortgage  Loans and related REO Property if the  aggregate  Note Balance of
     the Notes as of any  Payment  Date is less than 10% of the  aggregate  Note
     Balance of the Notes as of the Closing  Date  (provided  that a draw on the
     Policy would not occur as a result of such  purchase  and provided  further
     that  the  purchase  price  will  provide   sufficient  funds  to  pay  the

                                       38
<PAGE>

     outstanding  Note  Balance and accrued and unpaid  interest on the Notes to
     the  Payment  Date on  which  such  amounts  are to be  distributed  to the
     Securityholders),  at a  price  equal  to  100%  of  the  aggregate  unpaid
     Principal  Balance of all such remaining  Mortgage Loans,  plus accrued and
     unpaid interest  thereon at the weighted  average of the Loan Rates thereon
     up to the date  preceding  the Payment Date on which such amounts are to be
     distributed to the  Securityholders  (and in the case of REO Property,  the
     fair market value of the REO  Property),  plus any amounts due and owing to
     the Enhancer under the Insurance Agreement related to the Mortgage Loans or
     the Notes (and any unpaid  Servicing  Fee  relating to the  Mortgage  Loans
     shall  be  deemed  to have  been  paid at such  time),  plus  any  Interest
     Shortfall and interest owed thereon to the Noteholders.

               The  Servicer  shall send  written  notice to the Enhancer of its
intent to exercise its right to purchase any of the Mortgage  Loans  pursuant to
this Section 8.08(b).

               If such right is exercised by the  Servicer,  the Servicer  shall
deposit  the  amount  calculated  pursuant  to this  Section  8.08(b)  with  the
Indenture  Trustee  pursuant  to Section  4.10 of the  Indenture  and,  upon the
receipt of such deposit, the Indenture Trustee or Custodian shall release to the
Servicer,  the files  pertaining  to the  Mortgage  Loans being  purchased.  The
Servicer, at its expense, shall prepare and deliver to the Indenture Trustee for
execution,  at the time the  related  Mortgage  Loans are to be  released to the
Servicer,  appropriate  documents  assigning  each such Mortgage  Loans from the
Indenture Trustee or the Issuer to the Servicer or the appropriate party.

Section 8.09 Certain Matters Affecting the Indenture  Trustee.  For all purposes
of this Agreement, in the performance of any of its duties or in the exercise of
any of its  powers  hereunder,  the  Indenture  Trustee  shall be subject to and
entitled to the benefits of Article VI of the Indenture.

Section  8.10 Owner  Trustee  Not Liable for  Related  Documents.  The  recitals
contained herein shall be taken as the statements of the Servicer, and the Owner
Trustee and the Indenture Trustee assume no  responsibility  for the correctness
thereof.  The Owner Trustee and the Indenture Trustee make no representations as
to the  validity or  sufficiency  of this  Agreement,  of any Basic  Document or
Related Document, or of the Certificates (other than the signatures of the Owner
Trustee and the Indenture  Trustee on the  Certificates) or the Notes. The Owner
Trustee and the Indenture  Trustee shall at no time have any  responsibility  or
liability with respect to the  sufficiency of the Trust Estate or its ability to
generate the payments to be  distributed to  Certificateholders  under the Trust
Agreement or the  Noteholders  under the Indenture,  including the compliance by
the Depositor,  the Sellers or the Servicer with any warranty or  representation
made  under  any  Basic  Document  or the  accuracy  of  any  such  warranty  or
representation,  or any  action  of any  person  taken in the name of the  Owner
Trustee or the Indenture Trustee.

                                       39
<PAGE>

        IN WITNESS WHEREOF,  the Servicer,  the Issuer and the Indenture Trustee
have caused this Agreement to be duly executed by their  respective  officers or
representatives all as of the day and year first above written.

                       GMAC MORTGAGE CORPORATION,
                          as Servicer

                       By:    /s/ Sandy Blitzer
                              ---------------------------------------
                              Name: Sandy Blitzer
                              Title: Vice President

                       GMACM HOME EQUITY LOAN TRUST 2002-HE3, as
                       Issuer

                       By:    Wilmington Trust Company, not in its
                              individual capacity but solely as
                              Owner Trustee

                       By:    /s/ Donald G. MacKelcan
                              ---------------------------------------
                              Name: Donald G. MacKelcan
                              Title: Vice President

                       WELLS FARGO BANK MINNESOTA, N.A.,
                          as Indenture Trustee

                       By:    /s/ Peter A. Gobell
                              ---------------------------------------
                              Name: Peter A. Gobell
                              Title: Vice President

                                       40
<PAGE>

                                    EXHIBIT A

                             MORTGAGE LOAN SCHEDULE

<PAGE>

                                    EXHIBIT B

                            LIMITED POWER OF ATTORNEY

                               KNOW ALL MEN BY THESE PREMISES:

        That  Wells  Fargo Bank  Minnesota,  N.A.,  as  indenture  trustee  (the
"Indenture  Trustee"),  under the  indenture  dated as of August  28,  2002 (the
"Indenture"),  between GMACM Home Equity Loan Trust 2002-HE3,  as issuer and the
Indenture Trustee, a national banking  association  organized and existing under
the laws of the  United  States of  America,  and having  its  principal  office
located at 9062 Old Annapolis Road, Columbia,  Maryland  21045-1951,  hath made,
constituted  and  appointed,  and does by these  presents  make,  constitute and
appoint GMAC Mortgage  Corporation,  a corporation  organized and existing under
the  laws  of  the   Commonwealth   of   Pennsylvania,   its  true  and   lawful
Attorney-in-Fact,  with full power and authority to sign, execute,  acknowledge,
deliver, file for record, and record any instrument on its behalf and to perform
such  other  act or acts as may be  customarily  and  reasonably  necessary  and
appropriate to effectuate the following  enumerated  transactions  in respect of
any of the Mortgages  securing a Mortgage  Loan and the related Loan  Agreements
for  which  the   undersigned  is  acting  as  Indenture   Trustee  for  various
Securityholders  (whether  the  undersigned  is named  therein as  mortgagee  or
beneficiary  or has  become  mortgagee  by  virtue of  endorsement  of such Loan
Agreement secured by any such Mortgage) and for which GMAC Mortgage  Corporation
is acting as Servicer  pursuant to a Servicing  Agreement dated as of August 28,
2002 (the "Servicing Agreement").

This appointment shall apply to the following enumerated transactions only:

1.      The modification or re-recording of a Mortgage,  where said modification
        or re-recording is for the purpose of correcting the Mortgage to conform
        same to the original  intent of the parties  thereto or to correct title
        errors  discovered  after  such  title  insurance  was  issued  and said
        modification or  re-recording,  in either  instance,  does not adversely
        affect the Lien of the Mortgage as insured.

2.      The subordination of the Lien of a Mortgage to an easement in favor of a
        public  utility  company or a  government  agency or unit with powers of
        eminent  domain;  this section shall include,  without  limitation,  the
        execution of partial  satisfactions/releases,  partial  reconveyances or
        the execution of requests to trustees to accomplish same.

3.      With  respect to a Mortgage,  the  foreclosure,  the taking of a deed in
        lieu of  foreclosure,  or the  completion  of judicial  or  non-judicial
        foreclosure  or  termination,  cancellation  or  rescission  of any such
        foreclosure, including, without limitation, any and all of the following
        acts:

          a.   The  substitution  of  trustee(s)  serving  under a Mortgage,  in
               accordance with state law and the Mortgage;

        b.     Statements of breach or non-performance;

        c.     Notices of default;
<PAGE>

          d.   Cancellations/rescissions of notices of default and/or notices of
               sale;

        e.     The taking of a deed in lieu of foreclosure; and

          f.   Such other  documents  and actions as may be necessary  under the
               terms of the Mortgage or state law to expeditiously complete said
               transactions.

4.      The conveyance of the properties to the mortgage insurer, or the closing
        of the title to the  property to be acquired  as real estate  owned,  or
        conveyance of title to real estate owned.

5.      The completion of loan assumption agreements.

6.      The full  satisfaction/release  of a Mortgage or full  reconveyance upon
        payment and discharge of all sums secured  thereby,  including,  without
        limitation, cancellation of the related Loan Agreement.

7.   The  assignment  of  any  Mortgage  and  the  related  Loan  Agreement,  in
     connection  with the  repurchase of the Mortgage Loan secured and evidenced
     thereby.

8.      The full assignment of a Mortgage upon payment and discharge of all sums
        secured thereby in conjunction with the refinancing thereof,  including,
        without limitation, the endorsement of the related Loan Agreement.

9.   The modification or re-recording of a Mortgage,  where said modification or
     re-recording  is for the  purpose of any  modification  pursuant to Section
     3.01 of the Servicing Agreement.

10.  The execution of partial satisfactions/releases pursuant to Section 3.01 of
     the Servicing Agreement.

        The undersigned gives said  Attorney-in-Fact full power and authority to
execute  such  instruments  and to do and  perform  all and  every act and thing
necessary  and  proper to carry into  effect  the power or powers  granted by or
under this Limited Power of Attorney as fully as the undersigned  might or could
do, and hereby does ratify and confirm to all that said  Attorney-in-Fact  shall
lawfully do or cause to be done by authority hereof.

        Capitalized  terms used herein that are not otherwise defined shall have
the meanings ascribed thereto in Appendix A to the Indenture.

<PAGE>

        Third  parties  without  actual notice may rely upon the exercise of the
power granted under this Limited  Power of Attorney;  and may be satisfied  that
this Limited Power of Attorney  shall  continue in full force and effect has not
been revoked  unless an instrument of revocation has been made in writing by the
undersigned.

                                WELLS FARGO BANK MINNESOTA, N.A.,
                                    not in its individual capacity
                                    but solely as Indenture Trustee

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

<PAGE>

STATE OF                     )
                             SS.
COUNTY OF                    )

        On this [___] day of August,  2002,  before me the  undersigned,  Notary
Public of said State,  personally  appeared , personally  known to me to be duly
authorized officers of Wells Fargo Bank Minnesota, N.A. that executed the within
instrument and personally  known to me to be the persons who executed the within
instrument on behalf of Wells Fargo Bank  Minnesota,  N.A.  therein  named,  and
acknowledged  to me such Wells Fargo Bank  Minnesota,  N.A.  executed the within
instrument pursuant to its by-laws.

                                               WITNESS  my  hand  and   official
seal.

                                               Notary Public in and for the
                                               State of
                                                       ------------------------

After recording, please mail to:

Attn:
     -------------------------------

<PAGE>

                                    EXHIBIT C

                           FORM OF REQUEST FOR RELEASE

DATE:

TO:

RE:            REQUEST FOR RELEASE OF DOCUMENTS

In connection  with your  administration  of the Mortgage  Loans, we request the
release of the Mortgage File described below.

Servicing Agreement Dated:
Series #:
Account #:
Pool #:
Loan #:
Borrower Name(s):
Reason for Document Request: (circle one)          Mortgage Loan
Prepaid in Full                                    Mortgage Loan Repurchased

"We hereby  certify  that all amounts  received or to be received in  connection
with such  payments  which are required to be deposited  have been or will be so
deposited as provided in the Servicing Agreement."

GMAC Mortgage Corporation
Authorized Signature

******************************************************************************
TO CUSTODIAN:  Please  acknowledge  this request,  and check off documents being
enclosed with a copy of this form. You should retain this form for your files in
accordance with the terms of the Servicing Agreement.

Enclosed Documents:       [  ]   Loan Agreement

Name
    --------------------------------

Title
     -------------------------------

Date
    ------------------

<PAGE>

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