Document:

EX-10.3

Exhibit 10.3

GUARANTY AGREEMENT

This Guaranty Agreement (as amended, supplemented or otherwise modified and in effect from
time to time, this “Guaranty Agreement”) is made as of September 2, 2005 by New Century
Financial Corporation, a Maryland corporation (the “Guarantor”) in favor of DB Structured
Products, Inc. (“DBSP” or the “Committed Buyer”), Aspen Funding Corp.
(“Aspen”), Newport Funding Corp. (“Newport”), Gemini Securitization Corp., LLC
(“Gemini” and, together with Aspen and Newport, each a “Noncommitted Buyer” and
collectively, the “Noncommitted Buyers” and, together with Committed Buyer, each a
“Buyer” and collectively, the “Buyers”).

W I T N E S S E T H

WHEREAS, New Century Mortgage Corporation, New Century Credit Corporation, Home123 Corporation
and NC Capital Corporation (the “Sellers”) and the Buyers are parties to the Master
Repurchase Agreement, dated as of the date hereof (as amended, supplemented or otherwise modified
and in effect from time to time, the “Master Repurchase Agreement”; capitalized terms used
herein and not defined herein shall have the meanings assigned to such terms in the Master
Repurchase Agreement), pursuant to which the Buyers have agreed to purchase and the Sellers have
agreed to repurchase, subject to the terms and conditions of the Master Repurchase Agreement,
certain Eligible Mortgage Loans;

WHEREAS, the Guarantor directly or indirectly owns 100% of the outstanding shares in each
Seller and will therefore derive a substantial direct and indirect benefit from the Buyers’
purchase and sale of Mortgage Loans from and to the Sellers pursuant to the Master Repurchase
Agreement;

WHEREAS, to induce the Buyers to enter into the Master Repurchase Agreement and the other
Transaction Documents and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Guarantor has agreed to guaranty the Sellers’ obligations with
respect to the Master Repurchase Agreement and the other Transaction Documents; and

WHEREAS, it is a condition precedent to the effectiveness of the Master Repurchase Agreement
and the other Transaction Documents that the Guarantor execute and deliver this Guaranty Agreement;

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, each party hereto hereby agrees as follows:

1. The Guaranty. The Guarantor hereby unconditionally and irrevocably guarantees as
primary obligor and not merely as surety the full and prompt payment when due (whether upon
maturity, by acceleration or otherwise) of the Repurchase Price due with respect to all
Transactions (including without limitation all “Price Differential” which may be payable prior to
or during the pendency of any insolvency or similar proceeding with respect to any Seller) and all
other obligations of the Sellers, whether direct or indirect, absolute or contingent, due or to
become due, or now existing or hereafter incurred, which may arise under, or out of or in
connection with the Transactions, the Master Repurchase Agreement and the other Transaction
Documents, whether on account of covenants, Repurchase Prices, reimbursement obligations, fees,
indemnities, costs, expenses (including, without limitation, all fees and disbursements of counsel
to the Buyers that are required to be paid by the Sellers pursuant to the terms of the Master
Repurchase Agreement) or otherwise (all obligations in respect of repayment of the Repurchase
Prices and all of Seller’s other obligations to the Buyers relating to or arising in connection
with the Master Repurchase Agreement and the other Transaction Documents being hereafter sometimes
referred to as the “Guaranteed Obligations”). If any or all of any Seller’s obligations in
respect of the Guaranteed Obligations become due and payable, Guarantor unconditionally promises to
pay such amounts to the Committed Buyer on behalf of the Buyers, or order, on demand, together with
any and all expenses which may be incurred by the Buyers in collecting any of such amounts. If the
Buyers are prevented by law from accelerating any of the Guaranteed Obligations in accordance with
the terms of any agreement or instrument governing same, the Buyers shall be entitled to receive
hereunder from Guarantor, upon demand therefor, the sum which would have otherwise been due had
such acceleration occurred. Without limiting the generality of the foregoing, Guarantor
acknowledges that this guaranty is a guaranty of payment, not a guaranty of collection.

2. Bankruptcy. Additionally, the Guarantor unconditionally and irrevocably guarantees
the payment of any and all Guaranteed Obligations of any Seller, whether or not due or payable,
upon the occurrence in respect of such Seller of any of the events specified in Section 7(e) or (f)
of the Master Repurchase Agreement and unconditionally promises to pay such amounts to the Buyers,
or order, on demand, in lawful money of the United States, without setoff or counterclaim.

3. Nature of Liability. The liability of the Guarantor hereunder is exclusive and
independent of any security or other guaranty of the obligations of the Sellers whether executed by
the Guarantor or by any other party, and the liability of Guarantor hereunder shall not be affected
or impaired by (a) any direction as to application of payment by any Seller or by any other party,
or (b) any other continuing or other guaranty, undertaking or maximum liability of a guarantor or
of any other party as to the obligations of any Seller, or (c) any payment on or in reduction of
any such other guaranty or undertaking, or (d) any dissolution or termination of any Seller, or (e)
any payment made to any or all Buyers on the obligations which such Buyer or Buyers are required to
repay to any Seller, whether pursuant to a court order, in any bankruptcy, reorganization,
arrangement, moratorium or other debtor relief proceeding and the Guarantor waives any right to the
deferral or modification of its obligations hereunder by reason of any such proceeding.

4. Independent Obligation. (a) The obligations of the Guarantor hereunder are
independent of the obligations of any other guarantor or any Seller, and any security for or other
guarantee of the obligations of the Sellers, and a separate action or actions may be brought and
prosecuted against Guarantor whether or not action is brought against any other guarantor or any
Seller or any security held by the Buyers and without pursuing any other remedy, and whether or not
any other guarantor or any Seller be joined in any such action or actions. The Guarantor waives,
to the fullest extent permitted by law, the benefit of any statute of limitations affecting its
liability hereunder or the enforcement thereof. Any payment by any Seller or other circumstance
which operates to toll any statute of limitations as to such Seller shall operate to toll the
statute of limitations as to Guarantor. The Buyers’ rights under this Guaranty Agreement will not
be exhausted by any action or inaction by the Buyers until all of the Guaranteed Obligations have
been indefeasibly paid in full.

(b) The liability of the Guarantor hereunder is not affected or impaired by any direction or
application of payment by any Seller or by any other party, or by any other guarantee or
undertaking of any other guarantor or any other party as to the obligations of the Sellers, by any
payment on, or in reduction of, any such other guarantee or undertaking, by the termination,
revocation or release of any obligations under the Master Repurchase Agreement or of any other
guarantor, or by any payment made to the Buyers on the Guaranteed Obligations which the Buyers
repay to any Seller or any other guarantor or other person or entity, whether pursuant to court
order, in any bankruptcy, reorganization, arrangement, moratorium or other debtor relief proceeding
or any other fact or circumstance which would otherwise excuse the obligation of a guarantor or
surety, and Guarantor waives any right to the deferral or modification of Guarantor’s obligations
hereunder by reason of any such proceeding, fact or circumstance. This Guaranty Agreement shall
continue to be effective in accordance with its terms, or be reinstated, as the case may be, if at
any time payment, or any part thereof, of or with respect to any of the Guaranteed Obligations is
rescinded or must otherwise be restored or returned by a Buyer upon the insolvency, bankruptcy,
dissolution, liquidation or reorganization of any Seller or any other payor thereof, or upon or as
a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, any Seller or any other payor thereof or any substantial part of its property, or
otherwise, all as though such payments had not been made.

5. Authorization. Guarantor authorizes the Buyers without notice or demand, and
without affecting or impairing the Guarantor’s liability hereunder, from time to time to (a) renew,
compromise, extend, increase, accelerate or otherwise change the time for payment of, or otherwise
change the terms of, the Guaranteed Obligations or any part thereof, including any increase or
decrease of the rate of interest thereon, (b) take and hold security from the Sellers, any
guarantor or any other party for the payment of this guaranty or the Guaranteed Obligations and
subordinate, compromise, exchange, enforce, waive and release any such security or accept
additional or substituted security, (c) apply such security and direct the order or manner of sale
thereof as the Committed Buyer in its discretion may determine and (d) release, add or substitute
any one or more endorsers, guarantors or other obligors. Any modifications, renewals and
extensions of the Guaranteed Obligations may be made at any time by the Buyers, before or after any
termination of the Master Repurchase Agreement, and Guarantor shall be fully liable for any such
modifications, renewals or extensions. The Buyers may take any of the foregoing actions upon any
terms and conditions as the Buyers may elect, without giving notice to Guarantor or obtaining the
consent of Guarantor and without affecting the liability of Guarantor to the Buyers.

6. Reliance. It is not necessary for the Buyers to inquire into the capacity or
powers of any Seller or the officers, directors, partners or agents acting or purporting to act on
its behalf, and any Guaranteed Obligations made or created in reliance upon the professed exercise
of such powers shall be guaranteed hereunder. Guarantor assumes full responsibility for keeping
fully informed of the financial condition of the Sellers and all other circumstances affecting each
Seller’s ability to perform its obligations to the Buyers, and agrees that no Buyer will have any
duty to report to Guarantor any information which such Buyer receives about any Seller’s financial
condition or any circumstances bearing on its ability to perform, and expressly waives any right to
receive such information and any defense based upon failure to receive such information.

7. Subordination. Any indebtedness of any Seller now or hereafter held by Guarantor,
whether in connection with this Guaranty Agreement or whether completely independent of this
Guaranty Agreement and the Guaranteed Obligations, is hereby subordinated to the obligations of
such Seller to the Buyers; and such indebtedness of such Seller to Guarantor shall be collected,
enforced and received by Guarantor as trustee for the Buyers and be paid over to the Buyers on
account of the obligations of such Seller to the Buyers, but without affecting or impairing in any
manner the liability of the Guarantor under the other provisions of this Guaranty Agreement.
Guarantor further agrees that it will not assert any claim against any Seller until all Guaranteed
Obligations have been completely satisfied. Prior to the transfer by Guarantor of any note or
negotiable instrument evidencing any indebtedness of any Seller to Guarantor, Guarantor shall mark
such note or negotiable instrument with a legend that the same is subject to this subordination.

8. Waivers of Defenses. Guarantor waives: (a) all statutes of limitation as to the
Guaranteed Obligations, this Guaranty Agreement or otherwise as a defense to any action brought
against Guarantor by any Buyer, to the fullest extent permitted by law; (b) any defense based upon
any legal disability of any Seller or any discharge or limitation of the liability of any Seller to
the Buyers, whether consensual or arising by operation of law or any bankruptcy, insolvency, or
debtor-relief proceeding, or from any other cause; (c) presentment, demand, protest and notice of
any kind; (d) any defense based upon or arising out of any defense which any Seller may have to the
payment or performance of any part of the Guaranteed Obligations except payment in full; (e) any
defense based upon any disbursements by the Buyers to any Seller pursuant to any agreements or
instruments governing the Guaranteed Obligations whether same be deemed an additional advance or be
deemed to be paid out of any special interest or other fund accounts, as constituting unauthorized
payments hereunder or amounts not guaranteed by this Guaranty Agreement; (f) all rights to
participate in any security held by the Buyers for the Guaranteed Obligations; (g) irregularity or
unenforceability of any agreement or instrument representing or governing the Guaranteed
Obligations; (h) any request that a Buyer be diligent or prompt in making demands hereunder or
under any agreement or instrument representing or governing the Guaranteed Obligations; and (i) any
other defense in law or equity (except the defense that the Guaranteed Obligations have been
indefeasibly paid in full) which, under applicable law, would release the obligation of a guarantor
or surety, until the Guaranteed Obligations have been indefeasibly paid in full.

9. Representations and Warranties. Guarantor represents, warrants and agrees (which
representations, warranties and agreements shall survive Guarantor’s execution of this Guaranty
Agreement) to the Buyers that.

(a) Existence. It (i) is a corporation or limited liability company duly
organized, validly existing and in good standing under the laws of the jurisdiction of its
organization, (ii) has all requisite corporate, limited liability company or other power,
and has all governmental licenses, authorizations, consents and approvals necessary to own
its assets and carry on its business as now being or as proposed to be conducted, except
where the lack of such licenses, authorizations, consents and approvals would not be
reasonably likely to have a Material Adverse Effect; and (iii) is qualified to do business
and is in good standing in all other jurisdictions in which the nature of the business
conducted by it makes such qualification necessary, except where failure so to qualify would
not be reasonably likely (either individually or in the aggregate) to have a Material
Adverse Effect.

(b) Action. It is duly authorized and has all necessary corporate, limited
liability company or other power, authority and legal right to execute, deliver and perform
its obligations under each Transaction Document to which it is a party, to execute and
deliver each Transaction Document to which it is a party, and has taken all necessary action
to authorize such execution, delivery and performance, and each Transaction Document to
which it is a party constitutes its legal, valid and binding obligation, enforceable against
it in accordance with its terms, except as limited by bankruptcy, insolvency or other laws
affecting the enforcement of creditor’s rights generally and by general equitable
principles. This Guaranty Agreement is in proper legal form under the laws of Guarantor’s
jurisdiction of incorporation and of the jurisdiction of its principal location for
enforcement thereof against Guarantor in the courts of any such jurisdiction. In any legal
action upon this Guaranty Agreement in any such jurisdiction, the choice of law set forth in
Section 15 hereof would be given effect by the courts of such jurisdiction.

(c) Authorized Signatory. The person signing each Transaction Document to
which it is a party on its behalf is duly authorized to do so.

(d) No Breach. Neither (i) the execution and delivery of any Transaction
Document to which it is a party nor (ii) the consummation of the transactions therein
contemplated in compliance with the terms and provisions thereof will violate any law,
ordinance, charter, by-law or rule or regulation, or any order, writ, injunction or decree
of any Governmental Authority, applicable to it or any material agreement or instrument by
which it is bound or by which any of its assets are affected, or constitute a default under
any such agreement or instrument or result in the creation or imposition of any Lien (except
for the Liens created pursuant to this Agreement) upon any of its property pursuant to the
terms of any such agreement or instrument.

(e) Financial Condition. The Guarantor has heretofore furnished to Buyers a
copy of (i) the consolidated balance sheet of the Guarantor and its consolidated
Subsidiaries for the first two quarterly fiscal periods of the Guarantor’s fiscal year ended
December 31, 2005 and the related consolidated statements of income and retained earnings
and of cash flows of the Guarantor and its consolidated Subsidiaries for such quarterly
fiscal periods, setting forth in each case in comparative form the figures for the previous
year and (ii) the consolidated balance sheet of the Guarantor and its consolidated
Subsidiaries for the fiscal year ended 2004 and the related consolidated statements of
income and retained earnings and of cash flows of the Guarantor and its consolidated
Subsidiaries for such fiscal year, setting forth in each case in comparative form the
figures for the previous year, with the opinion thereon of KPMG, LLP. All such financial
statements are complete and correct and fairly present, in all material respects, the
consolidated financial condition of the Guarantor and its Subsidiaries and the consolidated
results of their operations as at such dates and for such fiscal periods, all in accordance
with GAAP applied on a consistent basis, excluding footnotes and normal year-end
adjustments. Since December 31, 2004, there has been no material adverse change in the
consolidated business, operations or financial condition of the Guarantor and its
consolidated Subsidiaries taken as a whole from that set forth in said financial statements.
Except as disclosed in such financial statements, the Guarantor is not subject to any
contingent liabilities or commitments that, individually or in the aggregate, have a
reasonable likelihood of causing a Material Adverse Effect.

(f) Litigation. There are no actions, suits, arbitrations, investigations or
proceedings pending or, to its knowledge, threatened against it or affecting any of its
property before any Governmental Authority (i) as to which individually or in the aggregate
there is a reasonable likelihood of an adverse decision which would be reasonably likely to
have a Material Adverse Effect or (ii) which questions the validity or enforceability of any
Transaction Document to which it is a party or any action to be taken in connection with the
transactions contemplated hereby.

(g) Approvals. No consent or authorization of, approval by, notice to, filing
with or other act by or in respect of, any Governmental Authority or securities exchange or
any other person is required or necessary in connection with the transactions hereunder or
with the execution, delivery, performance, validity or enforceability of any Transaction
Document to which it is a party or the consummation of the transactions contemplated
thereby, except as previously obtained and currently in full force and effect.

(h) Taxes. It has filed (or an Affiliate has filed on its behalf) all Federal
income tax returns and all other material tax returns that are required to be filed by it
and has paid all taxes due pursuant to such returns or pursuant to any assessment received
by it, except for any such taxes as are being appropriately contested in good faith by
appropriate proceedings diligently conducted and with respect to which adequate reserves in
accordance with GAAP have been provided. The charges, accruals and reserves on its books in
respect of taxes and other governmental charges are, in its opinion, adequate.

(i) True and Complete Disclosure. The information, reports, financial
statements, exhibits and schedules furnished in writing by it or on its behalf in connection
with or pursuant to this Agreement or included herein or therein or delivered pursuant
hereto or thereto, when taken as a whole, do not contain any untrue statement of material
fact. All written information furnished to Buyers after the date hereof by it or on its
behalf or in connection with this Agreement and the transactions contemplated hereby and
thereby will be true, complete and accurate in every material respect, or (in the case of
projections) based on reasonable estimates, on the date as of which such information is
stated or certified. There is no fact known to any of its Responsible Officers, after due
inquiry, that would reasonably be expected to have a Material Adverse Effect that has not
been disclosed herein or in a report, financial statement, exhibit, schedule, disclosure
letter or other writing furnished to Buyers for use in connection with the transactions
contemplated hereby.

(j) REIT Status. It has at all times been qualified as a real estate
investment trust (as defined in Section 856 of the Code) and has at all times been entitled
to a dividends paid deduction under Section 857(b) of the Code with respect to any dividends
paid by it with respect to each taxable year for which it claims a deduction in its Form
1120-REIT filed with the United States Internal Revenue Service for such year. It has not
engaged in any material “prohibited transactions” as defined in Section 857(b)(6)(B)(iii)
and (C) of the Code.

10. Covenants. For so long as the Master Repurchase Agreement is in effect, Guarantor
agrees that it:

(a) shall do all things necessary to remain duly organized, validly existing and in
good standing as a corporation or limited liability company in its jurisdiction of
organization and maintain all requisite authority to conduct its business in each
jurisdiction in which such Seller conducts business

(b) shall pay and discharge or cause to be paid and discharged, when due, all taxes,
assessments and governmental charges or levies imposed upon it or upon its income and
profits or upon any of its property, real, personal or mixed or upon any part thereof, as
well as any other lawful claims which, if unpaid, might become a Lien upon such properties
or any part thereof, except for any such taxes, assessments and governmental charges, levies
or claims as are contested in good faith by appropriate proceedings diligently conducted and
with respect to which adequate reserves are provided in accordance with GAAP. It shall file
on a timely basis (including any extensions) all federal and all material state and local
tax and information returns, reports and any other information statements or schedules
required to be filed by or in respect of it;

(c) shall take all steps necessary to maintain its status as a real estate investment
trust (as defined in Section 856 of the Code) that is entitled to the dividends paid
deduction under Section 857(b) of the Code, and shall not take any steps that would result
in loss of that status; and

(d) notify each Buyer of any event which would reasonably be expected to have a
Material Adverse Effect, including without limitation, litigation or licensing issues which
would reasonably be expected to have a Material Adverse Effect.

11. Waiver of Subrogation. The Guarantor hereby irrevocably waives (but only until
the final indefeasible payment and satisfaction of all Guaranteed Obligations due to Buyers and the
termination of all commitments of the Buyers under the Master Repurchase Agreement) any claim or
other rights which it may now have or hereafter acquire against any Seller or any other guarantor
that arise from the existence, payment, performance or enforcement of Guarantor’s obligations under
this Agreement, the Master Repurchase Agreement, including (without limitation) any right of
subrogation, reimbursement, exoneration, contribution, indemnification, any right to participate in
any claim or remedy of the Buyers against any Seller or any other guarantor or any collateral which
any Buyer now has or hereafter acquires, whether or not such claim, remedy or right arises in
equity, or under contract, statute or common law including (without limitation) the right to take
or receive from any Seller, directly or indirectly, in cash or other property or by set-off or in
any other manner, payment or security on account of such claim or other rights. If any amount
shall be paid to Guarantor in violation of the preceding sentence and the Guaranteed Obligations
shall not have been paid in full and the commitments of the Buyers under the Master Repurchase
Agreement terminated, such amount shall be deemed to have been paid to Guarantor for the benefit
of, and held in trust for the benefit of, the Buyers and shall forthwith be paid to the Committed
Buyer on behalf of the Buyers to be credited and applied upon the Guaranteed Obligations, whether
matured or unmatured, in accordance with the terms of the Master Repurchase Agreement. Guarantor
acknowledges that it will receive direct and indirect benefits from the financing arrangements
contemplated by the Master Repurchase Agreement and that the waiver set forth in this Guaranty
Agreement is knowingly made in contemplation of such benefits.

12. Default. The Buyers may declare Guarantor in default under this Guaranty
Agreement, and may exercise all of its rights hereunder and demand payment of the aggregate
outstanding principal amount of all Guaranteed Obligations, if the Guarantor fails to perform any
of its obligations under this Guaranty Agreement or if the Guarantor becomes the subject of any
bankruptcy, insolvency, arrangement, reorganization, moratorium, or other debtor-relief proceeding
under any law, whether now existing or hereafter enacted, or upon the appointment of a receiver
for, or the attachment, restraint of or making or levying of any order of court or legal process
affecting, the property of the Guarantor.

13. Right of Setoff. In addition to all rights of setoff or lien against any moneys,
securities or other property of the Guarantor given to the Buyers by law, upon the occurrence of
any default under any agreement or instrument governing any of the Guaranteed Obligations or under
this Guaranty Agreement, each Buyer is authorized at any time and from time to time, without notice
to Guarantor or to any other person or entity, any such notice being hereby expressly waived by
Guarantor, to set-off and apply any and all deposits (general) and any other indebtedness at any
time held or owing by any Buyer to or for the credit or the account of the Guarantor against and on
account of the obligations of the Guarantor under this Guaranty Agreement, irrespective of whether
or not such Buyer shall have made any demand hereunder or any demand for payment of any Guaranteed
Obligation and although said obligations, liabilities or claims, or any of them, shall be
contingent or unmatured.

14. Costs and Expenses. In addition to the amounts guaranteed hereunder, the
Guarantor agrees to pay the Buyers’ reasonable out-of-pocket costs and expenses, including but not
limited to legal fees and disbursements, incurred in any effort to collect or enforce any of the
Guaranteed Obligations or this Guaranty Agreement, whether or not any lawsuit is filed. Until paid
to the Committed Buyer on behalf of the Buyers, such sums will bear interest at the Alternate Base
Rate (as defined in the Master Repurchase Agreement) plus 2% per annum; provided that if
such interest exceeds the maximum amount permitted to be paid under applicable law, then such
interest shall be reduced to such maximum permitted amount. Interest accrued hereunder pursuant to
this paragraph shall be payable on demand and shall be calculated on the basis of the actual number
of days elapsed and a 360-day year.

15. Cumulative Remedies. No delay or failure by any Buyer to exercise any right or
remedy against, or to require performance by, Seller or Guarantor or any other party shall be
construed as a waiver of that right, remedy or requirement. All remedies of the Buyers against the
Sellers and Guarantor are cumulative. All powers of the Buyers to exercise any right or remedy
against, or to require performance by, the Sellers, the Servicer and Guarantor shall remain in full
force and effect until specifically waived or released by an instrument in writing executed by the
Buyers.

16. Governing Law. THIS GUARANTY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

17. Jurisdiction. The Guarantor irrevocably agrees that any legal action, suit or
proceeding against the Guarantor arising out of this Guaranty Agreement may be brought in the
United States District Court located in the City of New York, New York or in the courts of the
State of New York and hereby irrevocably accepts and submits to the non-exclusive jurisdiction of
each of the aforesaid courts in personam, generally and unconditionally with respect to any action,
suit or proceeding for the Guarantor and in respect of the Guarantor’s properties, assets and
revenues. The Guarantor further irrevocably agrees to the service of any legal process, summons,
notices and documents out of any of the aforesaid courts by mailing copies thereof by certified
mail, postage prepaid, to the Guarantor at its address designated pursuant to this Guaranty
Agreement. Nothing herein shall in any way be deemed to limit either party’s ability to serve any
such legal process, summons, notices and documents in any other manner, as may be permitted by
applicable law or to obtain jurisdiction over any party, or bring actions, suits or proceedings
against either party in such other jurisdictions, and in such manner, as may be permitted by
applicable law.

18. Severability. If any one or more of the provisions contained in this Guaranty
Agreement or any document executed in connection herewith shall be invalid, illegal or
unenforceable in any respect under any applicable law, the validity, legality and enforceability of
the remaining provisions contained herein shall not in any way be affected or impaired.

19. Taxes. All payments hereunder shall be made by Guarantor to the Committed Buyer
on behalf of the Buyers without setoff or counterclaim and in such amounts as may be necessary in
order that all such payments received by the Committed Buyer, after withholding for or on account
of any present or future taxes, levies, imposts, duties or other similar charges of whatsoever
nature imposed on the amounts payable by the Guarantor hereunder by any government or any political
subdivision or taxing authority thereof shall not be less than the amount required to be received
by the Committed Buyer hereunder. In addition, the Guarantor shall on demand indemnify the
Committed Buyer for all income taxes on additional amounts paid pursuant to the preceding sentence.
With respect to each such deduction or withholding, the Guarantor shall promptly (and in no event
later than 30 days thereafter) furnish to the Committed Buyer such certificates, receipts and other
documents as may be required to establish any tax credit, exemption or reduction in rate related
thereto.

20. Notices, Requests, Demands, etc. Except as otherwise expressly provided herein,
all notices, requests, demands or other communications to or upon the respective parties hereto
shall be deemed to have been duly given or made when delivered if sent by Federal Express or other
similar overnight delivery service, or three Business Days after mailing (when mailed, postage
prepaid, by registered or certified mail, return receipt requested) or (in the case of telex,
telegraphic, telecopier or cable notice) when delivered to the telex, telegraph, telecopier or
cable company, or (in the case of telex or telecopier notice sent over a telex or telecopier owned
or operated by a party hereto) when sent; in each case addressed to the party entitled to receive
same to the address stated alongside its name on the signature page hereto (or to such other
address as any party hereto may hereafter specify to the other in writing); provided that
communications with respect to a change of address shall be deemed to be effective when actually
received.

21. Amendment. No provisions of this Guaranty Agreement shall be waived, amended or
supplemented except by a written instrument executed by the Buyers and Guarantor.

22. Miscellaneous. The provisions of this Guaranty Agreement will bind and benefit
the successors and assigns of the Guarantor and the Buyers. The term “Seller” will mean both the
named Seller and any other person or entity at any time assuming or otherwise becoming primarily
liable on all or any part of the Guaranteed Obligations of such Seller. The descriptive headings
used in this Guaranty Agreement are for convenience only and shall not be deemed to affect the
meaning or construction of any provision hereof.

23. Waiver of Claims. The Guarantor hereby acknowledges, agrees and affirms that it
possesses no claims, defenses, offsets, recoupment or counterclaims of any kind or nature against
or with respect to the enforcement of this Guaranty Agreement, the Custodial Agreements or the
Master Repurchase Agreement or any amendments thereto (collectively, the “Claims”), nor
does Guarantor now have knowledge of any facts that would or might give rise to any Claims. If
facts now exist which would or could give rise to any Claim against or with respect to the
enforcement of this Guaranty Agreement, the Custodial Agreements, the Master Repurchase Agreement
or the other Transaction Documents, as any of the foregoing may have been amended by the amendments
thereto, Guarantor hereby unconditionally, irrevocably and unequivocally waives and fully releases
any and all such Claims as if such Claims were the subject of a lawsuit, adjudicated to final
judgment from which no appeal could be taken and therein dismissed with prejudice.

24. Counterparts. This Guaranty Agreement may be executed in any number of
counterparts, and by the different parties hereto on the same or separate counterparts, each of
which shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement. Telecopied signatures hereto shall be of the same force and effect as an
original of a manually signed copy.

25. WAIVER OF JURY TRIAL. EACH OF THE BUYERS AND GUARANTOR HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY AND ALL RIGHTS EITHER MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS GUARANTY
AGREEMENT OR ANY OTHER AGREEMENT OR DOCUMENT RELATED HERETO, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE SELLERS, THE BUYERS, THE
SERVICER OR THE GUARANTOR. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE BUYERS ENTERING INTO
THIS GUARANTY AGREEMENT AND THE MASTER REPURCHASE AGREEMENT REFERRED TO ON THE FIRST PAGE HEREOF.

26. Integration.

THIS AGREEMENT, THE MASTER REPURCHASE AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS REPRESENT
THE FINAL AGREEMENT AMONG THE PARTIES HERETO WITH RESPECT TO THE MATTERS COVERED HEREBY AND THEREBY
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF
THE PARTIES.

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

[remainder of page intentionally left blank]

1

IN WITNESS WHEREOF, each party hereto has
caused this Agreement to be duly executed as of the date first above written.

NEW CENTURY FINANCIAL CORPORATION

By /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Executive Vice President

By /s/ Brad A. Morrice

Name: Brad A. Morrice

Title: Vice Chairman, President and COO

Address:

New Century Financial Corporation

18400 Von Karman

Irvine, California 92612

2

ACCEPTED BY:

DB STRUCTURED PRODUCTS, INC.

By /s/ Glenn Minkoff

Name: Glenn Minkoff

Title: Director

By /s/ Frank Byrne

Name: Frank Byrne

Title: Managing Director

Address:

DB Structured Products, Inc.

60 Wall Street

New York, NY 10005

Attention: Glenn Minkoff

Telecopier No.: (212) 797-5160

Telephone No.: (212) 250-3406

ASPEN FUNDING CORP.

By /s/ Evelyn Echevarria

Name: Evelyn Echevarria

Title: Vice President

Address:

Aspen Funding Corp.

c/o AMACAR Group, L.L.C.

6525 Morrison Boulevard, Suite 318

Charlotte, North Carolina 28211

Attention: Doris Hearn/Evelyn Echevarria

Telecopier No.: (704) 365-1362

with a copy to:

c/o Deutsche Bank AG, New York Branch,

Administrative Agent

60 Wall Street

New York, NY 10005

Attention: Glenn Minkoff

Telecopier No.: (212) 797-5160

Telephone No.: (212) 250-3406

NEWPORT FUNDING CORP.

By /s/ Evelyn Echevarria

Name: Evelyn Echevarria

Title: Vice President

Address:

Newport Funding Corp.

c/o AMACAR Group, L.L.C.

6525 Morrison Boulevard, Suite 318

Charlotte, North Carolina 28211

Attention: Doris Hearn/Evelyn Echevarria

Telecopier No.: (704) 365-1362

with a copy to:

Deutsche Bank AG, New York Branch,

Administrator

60 Wall Street

New York, NY 10005

Attention: Glenn Minkoff

Telecopier No.: (212) 797-5160

Telephone No.: (212) 250-3406

GEMINI SECURITIZATION CORP., LLC

By: Gemini Member Corp., as sole member

By /s/ R. Douglas Donaldson

Name: R. Douglas Donaldson

Title: Treasurer

Address:

Gemini Securitization Corp., LLC

c/o Ropes & Gray, LLP

One International Place

Boston, Massachusetts 02110

Attention: R. Douglas Donaldson

Telecopier No.: (617) 951-7050

Telephone No.: (617) 951-7000

with a copy to:

Deutsche Bank AG, New York Branch,

Administrative Agent,

60 Wall Street

New York, NY 10005

Attention: Glenn Minkoff

Telecopier No.: (212) 797-5160

Telephone No.: (212) 250-3406

3EX-10.4

Exhibit 10.4

MASTER REPURCHASE AGREEMENT

Dated as of September 2, 2005

BETWEEN:

Bank of America, N.A., as buyer (“Buyer”, which term shall include any “Principal” as defined and
provided for in Annex I), or as agent pursuant hereto (“Agent”),

New Century Mortgage Corporation (“NCMC”), Home123 Corporation (“Home123”), New Century Credit
Corporation and NC Capital Corporation, as sellers (collectively the “Sellers” and individually a
“Seller”), and

New Century Financial Corporation, as guarantor (the “Guarantor”).

1. APPLICABILITY

Buyer shall, from time to time, upon the terms and conditions set forth herein, agree to
enter into transactions in which a Seller transfers to Buyer Eligible Assets against the
transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to such
Seller such Purchased Assets at a date certain, against the transfer of funds by such
Seller. Each such transaction shall be referred to herein as a “Transaction”, and, unless
otherwise agreed in writing, shall be governed by this Agreement.

2. DEFINITIONS AND INTERPRETATION

a. Defined Terms.

“Additional Purchased Assets” shall have the meaning assigned thereto in Section 6(a)
hereof.

“Adjusted Tangible Net Worth” shall mean at any date:

(a) Book Net Worth, minus

(b) The sum (without duplication) of (1) all assets which would be classified as
intangible assets of the Guarantor and its consolidated Subsidiaries under GAAP, including,
without limitation, advances to shareholders, officers and Affiliates (to the extent that
such advances increase Book Net Worth), investments in Affiliates, deferred taxes,
capitalized general and administrative costs, capitalized deal costs, all goodwill (whether
representing the excess cost over book value of assets acquired or otherwise), patents,
trademarks, trade names, copyrights, franchises and deferred charges (including, without
limitation, unamortized debt discount and expense, organization costs and research and
product development costs) plus (2) all receivables from directors, officers and
shareholders of the Guarantor and its consolidated Subsidiaries (to the extent such
receivables increase Book Net Worth).

“Adjustment Date” means, with respect to each Adjustable Rate Loan, the date set forth
in the related Note on which the Mortgage Interest Rate on such Adjustable Rate Mortgage is
adjusted in accordance with the terms of the related Note.

“Adjustable Rate Loan” shall mean a Loan which provides for the adjustment of the
Mortgage Interest Rate payable in respect thereon.

“Affiliate” means, with respect to any specified Person, any other Person controlling
or controlled by or under common control with such specified Person. For the purposes of this
definition, “control” means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting equity, by contract or otherwise.

“Agent” means Bank of America, N.A. or any successor.

“Agreement” means this Master Repurchase Agreement, as it may be amended, supplemented
or otherwise modified from time to time.

“Appraised Value” shall mean the value set forth in an appraisal made in connection
with the origination of the related Loan as the value of the Mortgaged Property.

“Approved Purchaser” means each investor listed in Exhibit B, as such Exhibit may be
amended from time to time and any other investor approved by the Buyer upon five (5) Business Days
prior notice, provided that any such investor will be deemed to have been approved by Buyer if no
response has been provided by the Buyer to the related Seller within the five (5) Business Day
period.

“Assignment of the Note and Pledge Agreement” means with respect to a Cooperative
Loan, an assignment of the Note and Pledge Agreement.

“Assignment of the Proprietary Lease” means with respect to a Cooperative Loan, an
assignment of the Proprietary Lease.

“Book Net Worth” shall mean the excess of total assets of a Person and its
consolidated Subsidiaries over Total Liabilities of such Person and its consolidated Subsidiaries
determined in accordance with GAAP.

“Borrower” means the obligor or obligors on a Note, or the mortgagor named in the
Pledge Agreement, in each case including any Person that has acquired the related collateral and
assumed the obligations of the original obligor or obligors under the Note.

“Breakage Costs” shall have the meaning assigned thereto in Section 3(d) herein.

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

“Buyer’s Margin Amount” means, with respect to any Transaction as of any date
of determination, the amount obtained by application of Buyer’s Margin Percentage to the Repurchase
Price for such Transaction as of such date.

“Buyer’s Margin Percentage” shall have the meaning assigned thereto in the
Side Letter.

“Cash Equivalents” shall mean (a) securities with maturities of 180 days or less from
the date of acquisition issued or fully guaranteed or insured by the United States Government or
any agency thereof, (b) certificates of deposit and eurodollar time deposits with maturities of 180
days or less from the date of acquisition and overnight bank deposits of any commercial bank having
capital and surplus in excess of $500,000,000, (c) repurchase obligations of any commercial bank
satisfying the requirements of clause (b) of this definition, having a term of not more than thirty
days with respect to securities issued or fully guaranteed or insured by the United States
Government, (d) commercial paper of a domestic issuer rated at least “A-1” or the equivalent
thereof by Standard & Poor’s Ratings Services (“S&P”) or “P-1” or the equivalent thereof by
Moody’s Investors Service, Inc. (“Moody’s”) and in either case maturing within 180
days after the day of acquisition, (e) securities with maturities of 180 days or less from the date
of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United
States, by any political subdivision or taxing authority of any such state, commonwealth or
territory or by any foreign government, the securities of which state, commonwealth, territory,
political subdivision, taxing authority or foreign government (as the case may be) are rated at
least “A” by S&P or “A” by Moody’s, (f) securities with maturities of 180 days or less from the
date of acquisition backed by standby letters of credit issued by any commercial bank satisfying
the requirements of clause (b) of this definition, or (g) shares of money market, mutual or similar
funds which invest exclusively in assets satisfying the requirements of clauses (a) through (f) of
this definition.

“Change in Control” shall mean the acquisition by any Person, or two or more Persons
acting in concert, of beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
Exchange Commission under the Securities Exchange Act of 1934) of outstanding shares of voting
stock of an entity at any time if after giving effect to such acquisition such Person or Persons
owns fifty percent (50%) or more of such outstanding voting stock.

“Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by Buyer (or any Affiliate of Buyer) with any request, guideline or directive (whether
or not having the force of law) of any Governmental Authority made or issued after the date of this
Agreement.

“Code” shall mean the Internal Revenue Code of 1986, as amended.

“Collateral” shall have the meaning assigned thereto in Section 8 hereof.

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

“Confirmation” shall have the meaning assigned thereto in Section 4(b) hereof.

“Consent” shall mean a document executed by the Cooperative (i) consenting to the sale
of the Cooperative Apartment to the Borrower and (ii) certifying that all maintenance charges
relating to the Cooperative Apartment have been paid.

“Convertible Loan” shall mean any individual Adjustable Rate Loan which contains a
provision whereby the Borrower is permitted to convert the Adjustable Rate Loan to a fixed rate
Loan in accordance with the terms of the related Note.

“Cooperative” shall mean the private, non-profit cooperative apartment corporation
which owns all of the real property that comprises the Project, including the land, separate
dwelling units and all common areas.

“Cooperative Apartment” shall mean the specific dwelling unit relating to a
Cooperative Loan.

“Cooperative Lien Search” shall mean a search for (a) federal tax liens, mechanics’
liens, lis pendens, judgments of record or otherwise against (i) the Cooperative, (ii) the seller
of the Cooperative Apartment and (iii) the Borrower if the Cooperative Loan is a Refinanced Loan,
(b) filings of Financing Statements and (c) the deed of the Project into the Cooperative.

“Cooperative Loan” shall mean a Loan that is secured by a first lien on and a
perfected security interest in Cooperative Shares and the related Proprietary Lease granting
exclusive rights to occupy the related Cooperative Apartment in the building owned by the related
Cooperative.

“Cooperative Shares” means the shares of stock issued by the Cooperative, owned by the
Borrower, and allocated to a Cooperative Apartment and represented by a Stock Certificate.

“Custodian” means U.S. Bank N.A., or its successors and permitted assigns.

“Custody Agreement” means the Custodial Agreement, dated as of September 2, 2005,
among Sellers, Buyer and Custodian as it may be amended, supplemented or otherwise modified from
time to time.

“Default” means any event, that, with the giving of notice or the passage of time or
both, would constitute an Event of Default.

“Default Rate” means, as of any date of determination, the lesser of (i) the Pricing
Rate plus 4% and (ii) the maximum rate permitted by applicable law.

“Effective Date” shall mean September 2, 2005.

“Electronic Tracking Agreement” means the electronic tracking agreement dated as of
September 2, 2005 among Buyers, Seller, Servicer, MERSCORP, Inc. and Mortgage Electronic
Registration, Systems, Inc., as the same may be amended, modified or supplemented from time to
time; provided that if no Loans are or will be MERS Designated Mortgage Loans, all
references herein to the Electronic Tracking Agreement shall be disregarded.

“Eligible Asset” shall have the meaning assigned thereto in the Side Letter.

“Eligible Loan” shall have the meaning assigned thereto in the Side Letter.

“Escrow Payments” shall mean, with respect to any Loan, the amounts constituting
ground rents, taxes, assessments, water rates, sewer rents, municipal charges, mortgage insurance
premiums, fire and hazard insurance premiums, condominium charges, and any other payments required
to be escrowed by the Borrower with the mortgagee pursuant to the Mortgage or any other document.

“Event of Default” shall have the meaning assigned thereto in Section 18 hereof.

“Facility Fee” shall have the meaning assigned thereto in Section 13(r) hereof.

“Facility Fee Amount” shall have the meaning assigned thereto in the Side Letter.

“Fannie Mae” means Fannie Mae, f/k/a the Federal National Mortgage Association, or any
successor thereto.

“Fannie Mae Guides” means the Fannie Mae Sellers’ Guide and the Fannie Mae Servicers’
Guide and all amendments or additions thereto.

“Fatal Exception” means a non-Wet Loan that does not have (i) the documents referenced
in paragraphs (a), (c), (d), (e), (f) and (k) of Section 2 of the Custodial Agreement and (ii) some
evidence that a title insurance policy has been issued or a commitment to issue such policy, in the
Loan File which shall be listed on the Fatal Exception Report.

“Fatal Exception Report” shall mean a report which shall be included in the Loan
Schedule and Exception Report provided by the Custodian, that will clearly identify any Loan with a
Fatal Exception.

“FICO Score” means the credit score of the Borrower provided by Fair, Isaac & Company,
Inc. or such other organization providing credit scores at the time of the origination of a Loan.

“Financing Statement” a financing statement in the form of a UCC-1 filed pursuant to
the Uniform Commercial Code to perfect a security interest in the Cooperative Shares and Pledge
Instruments.

“Fixed Rate Loan” shall mean a Loan with respect to which the Mortgage Interest Rate
is set forth in the Note is fixed for the term of such Loan.

“Freddie Mac” means Freddie Mac, f/k/a the Federal Home Loan Mortgage Corporation or
any successor thereto.

“GAAP” shall mean generally accepted accounting principles in the United States of
America in effect from time to time.

“Government Securities” shall mean any security issued or guaranteed as to principal
or interest by the United States, or by a Person controlled or supervised by and acting as an
instrumentality of the Government of the United States pursuant to authority granted by the
Congress of the United States; or any certificate of deposit for any of the foregoing.

“Governmental Authority” shall mean any nation or government, any state or other
political subdivision thereof, or any entity exercising executive, legislative, judicial,
regulatory or administrative functions over any Seller or Guarantor.

“Gross Margin” With respect to any Adjustable Rate Loan, the fixed percentage amount
set forth in the related Note and the related Loan Schedule that is added to the Index on each
Adjustment Date in accordance with the terms of the related Note to determine the new Mortgage
Interest Rate for such Loan.

“Guarantee” means, as to any Person, any obligation of such Person directly or
indirectly guaranteeing any Indebtedness of any other Person or in any manner providing for the
payment of any Indebtedness of any other Person.

“Guarantor” means New Century Financial Corporation, a Maryland corporation, formerly
known as “New Century REIT, Inc.” or any successor thereto.

“Guaranty” means the Guaranty of the Guarantor in favor of the Buyer, dated as of
September 2, 2005, as it may be further amended, supplemented or otherwise modified from time to
time.

“Hedge Counterparty” a Person (i) (A) with long-term and commercial paper or
short-term deposit ratings of “P-1” by Moody’s Investors Service and “A-1” by Standard & Poor’s and
(B) which shall agree in writing that, in the event that any of its long-term or commercial paper
or short-term deposit ratings cease to be at or above “A-2” by Moody’s and “A” by Standard &
Poor’s, it shall secure its obligations in accordance with the request of the Buyer or Buyer shall
have the option to treat such failure as an Early Termination Event (as defined in the ISDA Master
Agreement) by such Hedge Counterparty, and (ii) that has entered into a Hedge Instrument.

“Hedge Instrument” means any interest rate cap agreement, interest rate floor
agreement, interest rate swap agreement or other interest rate hedging agreement entered into by a
Seller or the Guarantor with a Hedge Counterparty that relates to or applies to the Purchased
Assets.

“Income” means, with respect to any Purchased Asset at any time, any principal and/or
interest thereon and all dividends, sale proceeds and other collections and distributions thereon,
but not including any commitment fees, origination fees and/or servicing fees (with respect to
third party servicers that are not an Affiliate of any Seller or the Guarantor).

“Indebtedness” shall mean, for any Person: (a) all obligations for borrowed money; (b)
obligations of such Person to pay the deferred purchase or acquisition price of Property or
services, other than trade accounts payable (other than for borrowed money) arising, and accrued
expenses incurred, in the ordinary course of business so long as such trade accounts payable are
payable and paid within ninety (90) days of the date the related invoice is received for the
respective goods delivered or the respective services rendered; (c) indebtedness of others secured
by a lien on the Property of such Person, whether or not the respective indebtedness so secured has
been assumed by such Person; (d) obligations (contingent or otherwise) of such Person in respect of
letters of credit or similar instruments issued for account of such Person; (e) capital lease
obligations of such Person; (f) obligations of such Person under repurchase agreements or like
arrangements; (g) indebtedness of others guaranteed on a recourse basis by such Person; (h) all
obligations of such Person incurred in connection with the acquisition or carrying of fixed assets
by such Person; (i) indebtedness of general partnerships of which such Person is a general partner;
and (j) any other contingent liabilities of such Person.

“Index” With respect to any Adjustable Rate Loan, the index identified on the Loan
Schedule and set forth in the related Note for the purpose of calculating the interest rate
thereon.

“Intercreditor Agreement” means the intercreditor agreement dated as of September 2,
2005 among the Sellers, NC Residual II Corporation, Loan Partners Mortgage, Ltd., Kingston
Mortgage Company, Ltd., Compufund Mortgage Company, Ltd., WRT Financial Limited Partnership,
Peachtree Residential Mortgage, L.P., Residential Prime Lending Limited Partnership, Team Home
Lending Ltd., Sutter Buttes Mortgage LP, Midwest Home Mortgage Ltd, Austin Mortgage, L.P., Capital
Pacific Home Loans, L.P., Golden Oak Mortgage, L.P., Northwest Capital Mortgage LP, SCFinance LP,
AD Astra Mortgage Ltd, the Buyer, DB Structured Products, Inc., Aspen Funding Corp., Newport
Funding Corp., Gemini Securitization Corp. LLC and Credit Suisse First Boston Mortgage Capital LLC.

“Interest Only Loan” shall mean a Loan which only requires the payment of interest for
a period of time specified in the related Note.

“Interest Rate Adjustment Date” shall mean, with respect to each adjustable rate Loan,
the date, specified in the related Note and the Loan Schedule, on which the Mortgage Interest Rate
is adjusted.

“Investment Company Act” means the Investment Company Act of 1940, as amended,
including all rules and regulations promulgated thereunder.

“LIBOR” shall mean, for each day, the rate determined by the Buyer on such date (or,
in the event such day is not a Business Day, the prior Business Day) on the basis of the offered
rate for one-month or overnight U.S. dollar deposits (as applicable), as such rate appears on
Telerate Page 3750 as of 11:00 a.m. (London time) on such date; provided that if such rate does not
appear on Telerate Page 3750, the rate for such date will be determined on the basis of the offered
rates of the Reference Banks for one-month or overnight U.S. dollar deposits (as applicable), as of
11:00 a.m. (London time) on such date. In such event, the Buyer will request the principal London
office of each of the Reference Banks to provide a quotation of its rate. If on such date, two or
more Reference Banks provide such offered quotations, LIBOR shall be the arithmetic mean of all
such offered quotations (rounded to the nearest whole multiple of 1/16%). If on such date, fewer
than two Reference Banks provide such offered quotations, LIBOR shall be the higher of (i) LIBOR as
determined on the previous LIBOR determination date and (ii) the Reserve Interest Rate. With
respect to each transaction, on the related Purchase Date and for each day that such Transaction is
outstanding, LIBOR shall be calculated at the overnight rate unless otherwise elected by the Seller
in writing on the related Purchase Date.

“Lien” shall mean any mortgage, lien, pledge, charge, security interest or similar
encumbrance.

“Lifetime Rate Cap” shall mean the provision of each Note related to an Adjustable
Rate Loan which provides for an absolute maximum Mortgage Interest Rate thereunder. The Mortgage
Interest Rate during the terms of each Adjustable Rate Loan shall not at any time exceed the
Mortgage Interest Rate at the time of origination of such Adjustable Rate Loan by more than the
amount per annum set forth on the Loan Schedule.

“Liquid Assets” shall mean, on a consolidated basis, the sum of all of Guarantor’s
cash, Cash Equivalents, and the market value of its U.S. Treasury securities and the amount
available under any committed secured financing facility or committed repurchase facility between
Guarantor and a third party acceptable to the Buyer (but only to the extent that Guarantor has
unencumbered assets to pledge, net of any applicable haircut, or has excess borrowing capacity
arising from assets already pledged).

“Loan” means (i) a first or second lien single family (one-to-four units) conforming
or non-conforming residential loan (including any Cooperative Loan), (ii) such other type of loan,
lease or other receivable as shall be agreed upon by the parties to the Custody Agreement, as
amended or supplemented by mutual agreement of the parties, or (iii) any interest in, or secured
by, any such loan, lease or other receivable.

“Loan Documents” shall mean, with respect to a Purchased Asset, the documents
comprising the Loan File for such Purchased Asset.

“Loan File” shall mean, as to each Purchased Asset, those documents listed in Section
2 of the Custodial Agreement] that are delivered to the Custodian or which at any time come into
the possession of the Custodian. The Custodian shall have no liability for its failure to identify
any document coming into its hands that does not clearly indicate on its face (or in the attached
transmitted documentation) the Loan to which it relates.

“Loan Schedule” means the list of Loans delivered by the Guarantor or the related
Seller to Buyer and Custodian together with each Transaction Notice and attached by the Custodian
to the related Trust Receipt. Each Loan Schedule shall set forth as to each Loan the information
required in Annex 1 to the Custodial Agreement together with any other information specified by
Buyer from time to time in good faith.

“Loan Schedule and Exception Report” has the meaning assigned thereto in the Custodial
Agreement.

“Manufactured Home” means a prefabricated or manufactured home a lien on which secures
a Loan and which is considered and treated as “real property” under applicable law.

“Margin Call” as defined in Section 6(a).

“Margin Deficit” shall have the meaning assigned thereto in Section 6(a) hereof.

“Market Value” means (i) with respect to any Purchased Asset that is an Eligible
Asset, as of any date of determination, the value ascribed to such asset by Buyer in its sole
discretion exercised in good faith, and (ii) with respect to a Purchased Asset that is not an
Eligible Asset, zero.

“Master Netting Agreement” means the Master Collateral Security and Master Netting
Agreement dated as of September 2, 2005 among Buyer, Guarantor and Sellers, as it may be further
amended, supplemented or otherwise modified from time to time.

“Material Adverse Change” means, with respect to a Person, any material adverse change
in the business, condition (financial or otherwise), operations, performance, properties or
prospects of such Person and its Subsidiaries taken as a whole.

“Material Adverse Effect” means (a) a Material Adverse Change with respect to the
Guarantor; (b) a material impairment of the ability of the Guarantor or any Affiliate that is a
party to any Program Document to perform under any Program Document and to avoid any Event of
Default; (c) a material adverse effect upon the legality, validity, binding effect or
enforceability of any Program Document against the Guarantor or any Affiliate that is a party to
any Program Document; or (d) a material adverse effect upon the value or marketability of a
material portion of the Purchased Assets.

“Maximum Aggregate Purchase Price” shall have the meaning assigned to such term in the
Side Letter.

“Maximum Mortgage Interest Rate” means with respect to each Adjustable Rate Loan, a
rate that is set forth on the related Loan Schedule and in the related Note and is the maximum
interest rate to which the Mortgage Interest Rate on such Loan may be increased on any Adjustment
Date.

“MERS” shall have the meaning assigned thereto in the Custodial Agreement.

“MERS Designated Mortgage Loan” shall have the meaning assigned thereto in the
Custodial Agreement.

“Minimum Mortgage Interest Rate” means with respect to each Adjustable Rate Loan, a
rate that is set forth on the related Loan Schedule and in the related Mortgage Note and is the
minimum interest rate to which the Mortgage Interest Rate on such Loan may be decreased on any
Adjustment Date.

“Monthly Payment” shall mean the scheduled monthly payment of principal and interest
on a Loan.

“Mortgage” means a mortgage, deed of trust, or other instrument that creates a lien on
the related Mortgaged Property and secures a Note.

“Mortgage Interest Rate” shall mean the annual rate of interest borne on a Note with
respect to each Loan.

“Mortgaged Property” means, with respect to a Loan (i) other than a Cooperative Loan,
the related Borrower’s fee interest in real property or leasehold interest in real property or (ii)
with respect to a Cooperative Loan, the Proprietary Lease and related Cooperative Shares, and all
other collateral securing repayment of the debt evidenced by the related Note.

“Negative Amortization” means with respect to each Negative Amortization Loan, that
portion of interest accrued at the Mortgage Interest Rate in any month which exceeds the Monthly
Payment on the related Loan for such month and which, pursuant to the terms of the Note, is added
to the principal balance of the Loan.

“Negative Amortization Loan” means each Loan that is identified on the Loan Schedule
as a Loan that may be subject to Negative Amortization.

“No Documentation Loans” means a Loan where the documentation standards include
mortgagors who provide limited or no documentation in connection with the underwriting of the
related Loan.

“Note” means, with respect to any Loan, the related promissory note together with all
riders thereto and amendments thereof or other evidence of indebtedness of the related Borrower.

“Notice Date” shall have the meaning assigned thereto in Section 4 hereof.

“Obligations” means (a) all of Sellers’ obligation to pay the Repurchase Price on the
Repurchase Date and other obligations and liabilities of Sellers and Guarantor to Buyer, its
Affiliates or Custodian or any other Person arising under, or in connection with, the Program
Documents or directly related to the Purchased Assets, whether now existing or hereafter arising;
(b) any and all sums paid by Buyer or on behalf of Buyer pursuant to the Program Documents in order
to preserve any Purchased Asset or its interest therein in accordance with the terms hereof; and
(c) in the event of any proceeding for the collection or enforcement of any of Sellers’
indebtedness, obligations or liabilities referred to in clause (a), the reasonable expenses of
retaking, holding, collecting, preparing for sale, selling or otherwise disposing of or realizing
on any Purchased Asset, or of any exercise by Buyer or such Affiliate of its rights under the
Program Documents, including without limitation, reasonable attorneys’ fees and disbursements and
court costs.

“Payment Adjustment Date” means with respect to each Negative Amortization Loan, the
date on which Monthly Payments shall be adjusted. A Payment Adjustment Date with respect to a
Negative Amortization Loan shall occur on each anniversary date of the first payment date for the
Loan and upon any recasting of the Mortgage Loan.

“Periodic Rate Cap” shall mean the provision of each Note related to an Adjustable
Rate Loan which provides for an absolute maximum amount by which the Mortgage Interest Rate therein
may increase or decrease on an Interest Rate Adjustment Date above or below the Mortgage Interest
Rate previously in effect. The Periodic Rate Cap for each Adjustable Rate Loan is the rate set
forth on the Loan Schedule.

“Person” shall mean any legal person, including any individual, corporation,
partnership, association, joint-stock company, trust, limited liability company, unincorporated
organization, governmental entity or other entity of similar nature.

“Pledge Agreement” means the specific agreement creating a first lien on and pledge of
the Cooperative Shares and the appurtenant Proprietary Lease securing a Cooperative Loan.

“Pledge Instruments” means the Stock Power, the Assignment of the Proprietary Lease
and the Assignment of the Note and Pledge Agreement.

“Price Differential” means, with respect to each Transaction as of any date, the
aggregate amount obtained by daily application of the Pricing Rate for such Transaction to the
Purchase Price on a 360-day-per-year basis for the actual number of days during the period
commencing on (and including) the Purchase Date and ending on (but excluding) the Repurchase Date
(reduced by any amount of such Price Differential in respect of such period previously paid by
related Seller to Buyer) with respect to such Transaction.

“Pricing Rate” means the per annum percentage rate for determination of the Price
Differential as set forth in the Side Letter.

“Prime Rate” means a rate set by Buyer based upon various factors including Buyer’s
costs and desired return, general economic conditions and other factors, and is used as a reference
point for pricing some loans, which may be priced at, above, or below such announced rate. Any
change in such rate announced by Buyer shall take effect at the opening of business on the day
specified in the public announcement of such change.

“Principal” shall have the meaning given to it in Annex I.

“Program Documents” means this Agreement, the Custody Agreement, any Servicing
Agreement, each Servicing Side Letter, the Electronic Tracking Agreement, the Master Netting
Agreement, the Guaranty, any assignment of Hedge Instrument, the Side Letter and any other
agreement entered into by a Seller and/or the Guarantor, on the one hand, and Buyer or one of its
Affiliates (or Custodian on its behalf) on the other, in connection herewith or therewith.

“Project” means all real property owned by the Cooperative including the land,
separate dwelling units and all common areas.

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

“Proprietary Lease” means a lease on a Cooperative Apartment evidencing the possessory
interest of the Borrower in such Cooperative Apartment.

“Purchase Date” means the date on which Purchased Assets are to be transferred by
Seller to Buyer.

“Purchase Price” shall have the meaning assigned thereto in the Side Letter.

“Purchased Assets” means, with respect to a Transaction, the Loans set forth on the
related Loan Schedule, together with the related Records, Servicing Rights, Sellers’ or Guarantor’s
rights under any takeout commitment related to the Loans and other Collateral, and all instruments,
chattel paper, and general intangibles comprising or relating to all of the foregoing. The term
“Purchased Assets” with respect to any Transaction at any time also shall include Additional
Purchased Assets delivered pursuant to Section 6(a) hereof.

“Qualified Appraiser” shall mean an appraiser, (i) duly appointed by the related
Seller, or (ii) qualified under Fannie Mae and Freddie Mac guidelines, in each case, who had no
interest, direct or indirect in the Mortgaged Property or in any loan made on the security thereof,
and whose compensation is not affected by the approval or disapproval of the Loan, and such
appraiser and the appraisal made by such appraiser both satisfy the requirements of Title XI of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and the regulations
promulgated thereunder, all as in effect on the date the Loan was originated.

“Recognition Agreement” means an agreement whereby a Cooperative and a lender with
respect to a Cooperative Loan (i) acknowledge that such lender may make, or intends to make, such
Cooperative Loan, and (ii) make certain agreements with respect to such Cooperative Loan.

“Records” means all instruments, agreements and other books, records, reports and data
generated by other media for the storage of information maintained by Sellers, Guarantor, any of
their Affiliates or agents, or their servicer or custodian with respect to a Purchased Asset.
Records shall include the Notes, any Mortgages, the Loan Files and any other instruments necessary
to document or service a Loan that is a Purchased Asset, including, without limitation, the
complete payment and modification history of each Loan that is a Purchased Asset.

“Refinanced Mortgage Loan” means a Loan the proceeds of which were not used to
purchase the related Mortgaged Property.

“REIT” means a real estate investment trust, as defined in Section 856 of the Code.

“REIT Status” means with respect to any Person, such Person’s status as a real estate
investment trust, as defined in Section 856(a) of the Code that satisfies the conditions and
limitations set forth in Sections 856(b) and 856(c) of the Code.

“Reference Banks” Any leading banks selected by the Agent which are engaged in
transactions in Eurodollar deposits in the international Eurocurrency market with an established
place of business in London.

“Repurchase Date” shall have the meaning assigned thereto in Section 3(c) and shall
also include the date determined by application of Section 19.

“Repurchase Price” means the price at which Purchased Assets are to be transferred
from Buyer to related Seller upon termination of a Transaction, which will be determined in each
case (including Transactions terminable upon demand) as the sum of the Purchase Price and the Price
Differential as of the date of such determination.

“Reserve Interest Rate” means with respect to any LIBOR determination date, the rate
per annum that the Agent determines to be either (i) the arithmetic mean (rounded to the nearest
whole multiple of 1/16%) of the one-month or overnight U.S. dollar lending rates (as applicable)
which New York City banks selected by the Agent are quoting on the relevant LIBOR determination
date to the principal London offices of leading banks in the London interbank market or (ii) in the
event that the Agent can determine no such arithmetic mean, the lowest one-month or overnight U.S.
dollar lending rate (as applicable) which New York City banks selected by the Agent are quoting on
such LIBOR determination date to leading European banks.

“RESPA” means the Real Estate Settlement Procedures Act, as amended from time to time.

“Servicer” means (i) New Century Mortgage Corporation and any successor thereto or
(ii) any other servicer approved by Buyer in its sole discretion exercised in good faith.

“Servicing Agreement” means the Transition Services Agreement or any other agreement
(other than the Custody Agreement) giving rise or relating to Servicing Rights with respect to a
Purchased Asset, including any assignment or other agreement relating to such agreement.

“Servicing Rights” means contractual, possessory or other rights of Sellers or any
other Person arising under a Servicing Agreement, the Custody Agreement or otherwise, to administer
or service a Purchased Asset or to possess related Records.

“Servicing Side Letter” means the Servicing Side Letter dated as of September 2, 2005
among the Buyer, NCMC, Home123, the Guarantor and RBC Centura Bank, as the same may be amended,
modified or supplemented from time to time entered into in connection with the Transaction Services
Agreement.

“Side Letter” means the pricing side letter, dated as of September 2, 2005, among
Sellers, Guarantor and Buyer, as the same may be amended, supplemented or modified from time to
time.

“Subsidiary” means, with respect to any Person, any corporation, partnership or other
entity of which at least a majority of the securities or other ownership interests having by the
terms thereof ordinary voting power to elect a majority of the board of directors or other persons
performing similar functions of such corporation, partnership or other entity (irrespective of
whether or not at the time securities or other ownership interests of any other class or classes of
such corporation, partnership or other entity shall have or might have voting power by reason of
the happening of any contingency) is at the time directly or indirectly owned or controlled by such
Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of
such Person.

“Stock Certificates” means the certificates evidencing ownership of the Cooperative
Shares issued by the Cooperative.

“Stock Power” means an assignment of the Stock Certificate or an assignment of the
Cooperative Shares issued by the Cooperative.

“Substitute Assets” has the meaning assigned thereto in Section 16.

“Takeout Commitment” shall mean, with respect to any Loan, an irrevocable commitment
issued by a Takeout Investor in favor of the related Seller pursuant to which such Takeout Investor
agrees to purchase such Loan at a specific price on a forward delivery basis acceptable to the
Buyer in its sole discretion.

“Takeout Investor” shall mean an Approved Purchaser which has agreed to purchase Loans
pursuant to a Takeout Commitment.

“Termination Date” has the meaning assigned thereto in Section 27.

“Total Indebtedness” shall mean, as to any Person for any period, the aggregate
Indebtedness of such Person during such period maintained in accordance with GAAP less the
aggregate amount of any such Indebtedness that is reflected on the balance sheet of such Person in
respect of obligations incurred pursuant to a securitization transaction, solely to the extent such
obligations are secured by the assets securitized thereby and are non-recourse to the Person. In
the event that any Indebtedness of a Person would be excluded from the calculation of Total
Indebtedness but for the existence of recourse, such person shall be entitled nonetheless to
exclude the amount of such Indebtedness that is not subject to recourse. The amount of any
recourse shall be the stated or determinable amount thereof or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as determined by the Person in good
faith.

“Total Liabilities” shall mean the total liabilities of a Person and its consolidated
Subsidiaries, determined in accordance with GAAP.

“Transaction” has the meaning assigned thereto in Section 1.

“Transaction Base Certificate” means the Transaction Base Certificate provided by the
Sellers to the Buyer in the form of Exhibit C hereto.

“Transaction Notice” means a written request of related Seller to enter into a
Transaction, in the form attached to the Custody Agreement which is delivered to Buyer and
Custodian.

“Transition Services Agreement” means the servicing agreement dated on or about the
date of this Agreement among RBC Mortgage Company, Royal Bank of Canada, RBC Centura Bank, Home 123
Corporation and New Century Mortgage Corporation.

“Trust Receipt” means a Trust Receipt and Certification as defined in the Custody
Agreement.

“Underwriting Guidelines” means underwriting guidelines of the Sellers in effect as of
the date of this Agreement, which have been approved in writing by Buyer, as the same may be
amended from time to time in accordance with terms of this Agreement.

“Uniform Commercial Code” means the Uniform Commercial Code as in effect on the date
hereof in the State of New York or the Uniform Commercial Code as in effect in the applicable
jurisdiction.

“Wet Funded Loan” means a Loan for which, as of the related initial Purchase Date, the
documents in the related Loan File have not been delivered to the Custodian, and thereafter, each
date until the documents in the related Loan File have been delivered to the Custodian.

“Wet Funding Package” shall have the meaning assigned thereto in the Custody
Agreement.

b. Capitalized terms used but not defined in this Agreement shall have the meanings assigned
thereto in the Custody Agreement.

c. Interpretation.

Headings are for convenience only and do not affect interpretation. The following rules of
this subsection (c) apply unless the context requires otherwise. The singular includes the plural
and conversely. A gender includes all genders. Where a word or phrase is defined, its other
grammatical forms have a corresponding meaning. A reference to a subsection, Section, Annex or
Exhibit is, unless otherwise specified, a reference to a Section of, or annex or exhibit to, this
Agreement. A reference to a party to this Agreement or another agreement or document includes the
party’s successors and permitted substitutes or assigns. A reference to an agreement or document is
to the agreement or document as amended, modified, novated, supplemented or replaced, except to the
extent prohibited by any Program Document. A reference to legislation or to a provision of
legislation includes a modification or re-enactment of it, a legislative provision substituted for
it and a regulation or statutory instrument issued under it. A reference to writing includes a
facsimile transmission and any means of reproducing words in a tangible and permanently visible
form. A reference to conduct includes, without limitation, an omission, statement or undertaking,
whether or not in writing. An Event of Default exists until it has been waived in writing by the
Buyer or has been timely cured. The words “hereof”, “herein”, “hereunder” and similar words refer
to this Agreement as a whole and not to any particular provision of this Agreement. The term
“including” is not limiting and means “including without limitation.” In the computation of periods
of time from a specified date to a later specified date, the word “from” means “from and
including”, the words “to” and “until” each mean “to but excluding”, and the word “through” means
“to and including.” This Agreement may use several different limitations, tests or measurements to
regulate the same or similar matters. All such limitations, tests and measurements are cumulative
and shall each be performed in accordance with their terms. Unless the context otherwise clearly
requires, all accounting terms not expressly defined herein shall be construed, and all financial
computations required under this Agreement shall be made, in accordance with GAAP, consistently
applied. References herein to “fiscal year” and “fiscal quarter” refer to such fiscal periods of
the Sellers or the Guarantor, as applicable.

A reference to a document includes an agreement (as so defined) in writing or a certificate,
notice, instrument or document, or any information recorded in computer disk form. Where a Seller
or the Guarantor is required to provide any document to the Buyer under the terms of this
Agreement, the relevant document shall be provided in writing or printed form unless the Buyer
requests otherwise. At the request of the Buyer, the document shall be provided in computer
readable format or both printed and computer readable format.

This Agreement is the result of negotiations among and has been reviewed by counsel to the
Buyer, Guarantor and the Sellers, and is the product of all parties. In the interpretation of this
Agreement, no rule of construction shall apply to disadvantage one party on the ground that such
party proposed or was involved in the preparation of any particular provision of this Agreement or
this Agreement itself.

3. THE TRANSACTIONS

a. Subject to the terms and conditions of the Program Documents, this Agreement is a
commitment by Buyer to purchase from Sellers certain Purchased Assets up to the Maximum Aggregate
Purchase Price and Buyer hereby agrees to enter into Transactions with an aggregate Purchase Price
for all Purchased Assets acquired by Buyer not to exceed the Maximum Aggregate Purchase Price.

b. With respect to any Transaction, related Seller shall repurchase Purchased Assets from
Buyer on each related Repurchase Date. Each obligation to repurchase subsists without regard to
any prior or intervening liquidation or foreclosure with respect to any Purchased Asset. Related
Seller is obligated to obtain the Purchased Assets from Buyer or its designee (including the
Custodian) at its own expense on (or after) the related Repurchase Date.

c. Provided that the applicable conditions in Sections 9(a) and (b) have been satisfied, each
Purchased Asset that is repurchased by related Seller on the Repurchase Date occurring on the 25th
day of each month (or, if such 25th day is not a Business Day, the immediately following Business
Day) following the related Purchase Date (the day of the month so determined for each month, or any
other date designated by related Seller to Buyer for such a repurchase on at least one Business
Day’s prior notice to Buyer, a “Repurchase Date”, which term shall also include the date determined
by application of Section 19 (a)) shall automatically become subject to a new Transaction unless
Buyer is notified by such Seller at least one (1) Business Day prior to any such Repurchase Date,
provided that if the Repurchase Date so determined is later than the Termination Date, the
Repurchase Date for such Transaction shall automatically reset to the Termination Date, and the
provisions of this sentence as it might relate to a new Transaction shall expire on such date. For
each new Transaction, unless otherwise agreed, (y) the accrued and unpaid Price Differential shall
be settled in cash on each related Repurchase Date, and (z) the Pricing Rate shall be as set forth
in the Side Letter.

d. If Buyer locks in the rate of LIBOR at the request of such Seller and such Seller
repurchases Purchased Assets on any day which is not the Repurchase Date set forth in Section 3(c)
above, such Seller shall indemnify Buyer and hold Buyer harmless from any losses, costs and/or
expenses which Buyer may sustain or incur arising from the reemployment of funds obtained by Buyer
hereunder or from fees payable to terminate the deposits from which such funds were obtained
(“Breakage Costs”), in each case for the remainder of the applicable 30 day period. Buyer shall
deliver to such Seller a statement setting forth the amount and basis of determination of any
Breakage Costs in such detail as determined in good faith by Buyer to be adequate, it being agreed
that such statement and the method of its calculation shall be adequate and shall be conclusive and
binding upon such Seller, absent manifest error. This Section shall survive termination of this
Agreement and the repurchase of all Purchased Assets subject to Transactions hereunder.

4. TRANSACTION NOTICE CONFIRMATIONS

a. Unless otherwise agreed, related Seller shall give Buyer and Custodian notice of any
proposed Purchase Date in accordance with the terms of the Custody Agreement (the date on which
such notice is so given, the “Notice Date”). On the Notice Date, related Seller or the Guarantor
shall (i) request that Buyer enter into a Transaction by furnishing to Buyer and Custodian a
Transaction Notice and Loan Schedule, (ii) deliver to Buyer a Computer Medium for the related
Purchased Assets and (iii) deliver to Custodian the Loan File or Wet Funding Package for each Loan
subject to such Transaction.

b. In the event that the parties hereto desire to enter into a Transaction on terms other than
as set forth in this Agreement (as amended by the Side Letter), the parties shall execute a
“Confirmation” specifying such terms prior to entering into such Transaction, including, without
limitation, the Purchase Date, the Purchase Price, the Pricing Rate therefor and the Repurchase
Date. Any such Confirmation and the related Transaction Notice, together with this Agreement, shall
constitute conclusive evidence of the terms agreed between Buyer and related Seller with respect to
the Transaction to which the Confirmation relates. In the event of any conflict between this
Agreement and a Confirmation, the terms of the Confirmation shall control with respect to the
related Transaction.

5. PAYMENT AND TRANSFER

Unless otherwise agreed, all transfers of funds hereunder shall be in immediately available
funds and all Purchased Assets transferred shall be transferred to the Custodian pursuant to the
Custody Agreement. Any Repurchase Price or Price Differential received by Buyer after 4:00 p.m. New
York City time shall be applied on the next succeeding Business Day.

6. MARGIN MAINTENANCE

a. If at any time the aggregate Market Value of all Purchased Assets subject to all
Transactions is less than the aggregate Buyer’s Margin Amount for all such Transactions (a “Margin
Deficit”), then Buyer may by notice to Sellers require Sellers in such Transactions to transfer to
Buyer cash or, at Buyer’s option (and provided Seller has additional Eligible Assets), additional
Eligible Assets (“Additional Purchased Assets”), so that the cash and aggregate Market Value of the
Purchased Assets, including any such Additional Purchased Assets, will thereupon equal or exceed
such aggregate Buyer’s Margin Amount (such requirement, a “Margin Call”).

b. Notice required pursuant to Section 6(a) may be given by any means provided in Section 35
hereof. Any notice given before 10:00 a.m. New York City time on a Business Day shall be satisfied
no later than 5:00 p.m. New York City time on such Business Day. Any notice given on or after 10:00
a.m. New York City time on a Business Day shall be satisfied no later than 5:00 p.m. New York City
time on the Business Day following the date of such notice. The failure of Buyer, on any one or
more occasions, to exercise its rights hereunder, shall not change or alter the terms and
conditions to which this Agreement is subject or limit the right of Buyer to do so at a later date.
Each Seller, Guarantor and Buyer each agree that a failure or delay by Buyer to exercise its rights
hereunder shall not limit or waive Buyer’s rights under this Agreement or otherwise existing by law
or in any way create additional rights for any Seller or the Guarantor.

7. INCOME PAYMENTS

Where a particular term of a Transaction extends over the date on which Income is paid in
respect of any Purchased Assets subject to that Transaction, such Income shall be the property of
Buyer. Notwithstanding the foregoing, and provided no Event of Default has occurred and is
continuing, Buyer agrees that related Seller shall be entitled to receive an amount equal to all
Income received, whether by Guarantor, Buyer, Custodian, Servicer or any servicer or any other
Person, which is not otherwise received by related Seller, in respect of the Purchased Assets;
provided, however, that any income received by or on behalf of related Seller while the related
Transaction is outstanding shall be deemed held by such Seller solely in trust for Buyer pending
the repurchase on the related Repurchase Date. Upon the occurrence of an Event of Default, the
Sellers and the Guarantor shall cause all Income to be delivered to the Buyer.

8. SECURITY INTEREST

Each Seller and Buyer intend that the Transactions hereunder be sales to Buyer of the
Purchased Assets and not loans from Buyer to Sellers secured by the Purchased Assets. However, in
order to preserve Buyer’s rights under this Agreement in the event that a court or other forum
recharacterizes the Transactions hereunder as other than sales, and as security for each Seller’s
performance of all of its Obligations, each Seller hereby grants Buyer a fully perfected first
priority security interest in such Seller’s right, title and interest in and to the following
property, whether now existing or hereafter acquired: the Purchased Assets, the related Records,
all Hedge Instruments, all mortgage guaranties and insurance relating to such Purchased Assets
(issued by governmental agencies or otherwise) and any mortgage insurance certificate or other
document evidencing such mortgage guaranties or insurance relating to such Purchased Assets and all
claims and payments thereunder, any purchase agreements or other agreements or contracts relating
to or constituting any or all of the foregoing, all “accounts” as defined in the Uniform Commercial
Code relating to or constituting any or all of the foregoing, all other insurance policies and
insurance proceeds relating to any Purchased Asset or the related Mortgaged Property, any security
account and all rights to Income and the rights to enforce such payments arising from any of the
Purchased Assets, the Servicing Rights, all guarantees or other support for the related Loans, and
any and all replacements, substitutions, distributions on or proceeds with respect to any of the
foregoing (collectively the “Collateral”).

9. CONDITIONS PRECEDENT

a. As conditions precedent to the initial Transaction, Buyer shall have received on or before
the day of such initial Transaction the following, in form and substance satisfactory to Buyer and
duly executed by each party thereto (as applicable):

(i) The Program Documents duly executed and delivered by the parties thereto and being
in full force and effect, free of any modification, breach or waiver;

(ii) Evidence that all other actions necessary or, in the opinion of Buyer, desirable
to perfect and protect Buyer’s interest in the Purchased Assets and other Collateral have
been taken, including, without limitation, duly executed and filed Uniform Commercial Code
financing statements on Form UCC-1;

(iii) A certified copy of each Seller’s and Guarantor’s consents or corporate
resolutions, as applicable, approving the Program Documents and Transactions thereunder
(either specifically or by general resolution), and all documents evidencing other necessary
corporate action or governmental approvals as may be required in connection with the Program
Documents;

(iv) An incumbency certificate of the secretaries of each Seller and Guarantor
certifying the names, true signatures and titles of each Seller’s and Guarantor’s
representatives duly authorized to request Transactions hereunder and to execute the Program
Documents and the other documents to be delivered thereunder;

(v) An opinion of Sellers’ and Guarantor’s counsel as to such matters as Buyer may
reasonably request (including, without limitation, perfected security interest in the
Collateral) and in form and substance acceptable to Buyer;

(vi) A copy of the Underwriting Guidelines certified by an officer of applicable Seller
to which such Underwriting Guidelines relate;

(vii) The acquisition by Home123 of certain assets of RBC Mortgage Company must have
been completed;

(viii) A copy of the certificate of insurance evidencing compliance with Section 13(o)
of this Agreement;

(ix) All of the conditions precedent in the Guaranty shall have been satisfied;

(x) Any other documents reasonably requested by Buyer;

(xi) Buyer’s legal, tax, business and environmental due diligence of the Sellers and
Guarantor each shall have been completed to the satisfaction of the Buyer; and

(xii) Payment of the Facility Fee Amount by wire transfer by the Sellers to the Buyer
in immediately available funds.

b. The obligation of Buyer to enter into each Transaction pursuant to this Agreement is
subject to the following conditions precedent:

(i) Buyer or its designee shall have received on or before the day of a Transaction
with respect to such Purchased Assets (unless otherwise specified in this Agreement) the
following, in form and substance satisfactory to Buyer and (if applicable) duly executed:

	 	(A)	 	Transaction Notice, Loan Schedule and Computer Medium with
respect to such Purchased Assets delivered pursuant to Section 4(a);

	 	(B)	 	The related Trust Receipt, with the Loan Schedule attached;

	 	(C)	 	Such certificates, customary opinions of counsel or other
documents as Buyer may reasonably request, provided that such opinions of
counsel shall not be routinely required in connection with each Transaction but
shall only be required from time to time as deemed necessary by Buyer in its
commercially reasonable judgment;

	 	(D)	 	A copy of the Underwriting Guidelines, to the extent such
guidelines have been amended in any material respect; and

	 	(E)	 	A copy of the applicable notice set forth as Exhibit C (which
may be contained in the related Transaction Notice).

(ii) No Default or Event of Default shall have occurred and be continuing.

(iii) Buyer shall not have reasonably determined that a change in any requirement of
law or in the interpretation or administration of any requirement of law applicable to Buyer
has made it unlawful, and no Governmental Authority shall have asserted that it is unlawful,
for Buyer to enter into Transactions with a Pricing Rate based on LIBOR.

(iv) All representations and warranties in the Program Documents shall be true and
correct on the date of such Transaction and Sellers and Guarantor are in compliance with the
terms and conditions of the Program Documents.

(v) The then aggregate outstanding Purchase Price for all Purchased Assets, when added
to the Purchase Price for the requested Transaction, shall not exceed the Maximum Aggregate
Purchase Price.

(vi) No event or events shall have been reasonably determined by Buyer to have occurred
and be continuing, resulting in the effective absence of a whole loan or asset-backed
securities market or commercial paper market.

(vii) Satisfaction of any conditions precedent to the initial Transaction as set forth
in clause (a) of this Section 9 that were not satisfied prior to such initial Purchase Date.

(viii) The Purchase Price for the requested Transaction shall not be less than
$500,000.

(ix) Buyer shall have determined that all actions necessary or, in the opinion of
Buyer, desirable to maintain Buyer’s perfected interest in the Purchased Assets and other
Collateral have been taken, including, without limitation, duly executed and filed Uniform
Commercial Code financing statements on Form UCC-1.

(x) The Sellers and Guarantor shall have paid to Buyer all fees and expenses, if any,
owed to Buyer in accordance with this Agreement.

(xi) There shall be no Margin Deficit at the time immediately prior to entering into a
new Transaction.

(xii) Each secured party (including any party that has a precautionary security
interest in a Loan) shall have released all of its right, title and interest in, to and
under such Loan (including, without limitation, any security interest that such secured
party or secured party’s agent may have by virtue of its possession, custody or control
thereof) and has filed Uniform Commercial Code termination statements in respect of any
Uniform Commercial Code filings made in respect of such Loan, and each such release and
Uniform Commercial Code termination statement shall have been delivered to the Buyer prior
to each Transaction and to the Custodian as part of the Loan File.

(xiii) Any other documents reasonably requested by Buyer.

(xiv) Buyer shall have received a Transaction Base Certificate.

(xv) The Buyer shall not be obligated to enter into more than two Transactions per
Business Day.

10. RELEASE OF PURCHASED ASSETS

Upon timely payment in full of the Repurchase Price and all other Obligations that relate to
and are owed (if any) with respect to a Purchased Asset, if no Default or Event of Default has
occurred and is continuing, Buyer shall, and shall direct Custodian to, release such Purchased
Asset unless such release would give rise to or perpetuate a Margin Deficit. Except as set forth
in Sections 6(a) and 16, Seller shall give at least one (1) Business Day’s prior written notice to
Buyer if such repurchase shall occur on any date other than a Repurchase Date set forth in Section
3(c).

If such a Margin Deficit is applicable, Buyer shall notify Seller of the amount thereof and
Seller may thereupon satisfy the Margin Call in the manner specified in Section 6.

11. RELIANCE

With respect to any Transaction, Buyer may conclusively rely upon, and shall incur no
liability to Sellers or Guarantor in acting upon, any request or other communication that Buyer
reasonably believes to have been given or made by a person authorized to enter into a Transaction
on a Seller’s or Guarantor’s behalf.

12. REPRESENTATIONS AND WARRANTIES

Each Seller and the Guarantor, jointly and severally, hereby represents and warrants, and
shall on and as of the Purchase Date for any Transaction and on and as of each date thereafter
through and including the related Repurchase Date be deemed to represent and warrant, that:

a. Due Organization and Qualification. Each Seller and the Guarantor is duly
organized, validly existing and in good standing under the laws of the jurisdiction under whose
laws it is organized. Each Seller and the Guarantor is duly qualified to do business, is in good
standing and has obtained all necessary licenses, permits, charters, registrations and approvals
necessary for the conduct of its business as currently conducted and the performance of its
obligations under the Program Documents or any failure to obtain such a license, permit, charter,
registration or approval will not cause a Material Adverse Effect or impair the enforceability of
any Loan.

b. Power and Authority. Each Seller and the Guarantor has all necessary power and
authority to conduct its business as currently conducted, to execute, deliver and perform its
obligations under the Program Documents and to consummate the Transactions.

c. Due Authorization. The execution, delivery and performance of the Program Documents
by each Seller and the Guarantor have been duly authorized by all necessary action and do not
require any additional approvals or consents or other action by or any notice to or filing with any
Person other than any that have heretofore been obtained, given or made.

d. Noncontravention. None of the execution and delivery of the Program Documents by
each Seller or Guarantor or the consummation of the Transactions and transactions thereunder:

(i) conflicts with, breaches or violates any provision of the organizational documents,
or material agreements of such Seller or the Guarantor or in any material respect any law,
rule, regulation, order, writ, judgment, injunction, decree, determination or award
currently in effect having applicability to such Seller or Guarantor or its properties;

(ii) constitutes a material default by such Seller or Guarantor under any loan or
repurchase agreement, mortgage, indenture or other material agreement or instrument to which
such Seller or Guarantor is a party or by which it or any of its properties is or may be
bound or affected; or

(iii) results in or requires the creation of any lien upon or in respect of any of the
assets of any Seller or Guarantor except the lien relating to the Program Documents.

e. Legal Proceeding. Except as otherwise disclosed in the financial statements of
Guarantor prior to the Effective Date, there is no action, proceeding or investigation by or before
any court, governmental or administrative agency or arbitrator affecting any of the Purchased
Assets, any Seller, Guarantor or any of their Affiliates, pending or threatened, which is
reasonably likely to be adversely determined and which, if adversely determined would have a
reasonable likelihood of having a Material Adverse Effect.

f. Valid and Binding Obligations. Each of the Program Documents to which the Sellers
or the Guarantor is a party, when executed and delivered by such Seller or Guarantor, as
applicable, will constitute the legal, valid and binding obligations of such Seller or Guarantor,
as applicable, enforceable against such Seller or Guarantor, in accordance with their respective
terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights generally and general equitable
principles (regardless of whether enforcement is sought in a proceeding in equity or at law).

g. Financial Statements. The financial statements of Guarantor, copies of which have
been furnished to Buyer, (i) are, as of the dates and for the periods referred to therein, complete
and correct in all material respects, (ii) present fairly the financial condition and results of
operations of the Guarantor as of the dates and for the periods indicated and (iii) have been
prepared in accordance with GAAP consistently applied, except as noted therein (subject as to
interim statements to normal year-end adjustments). Since the date of the most recent financial
statements, there has been no Material Adverse Change with respect to the Guarantor. Except as
disclosed in such financial statements, Guarantor is not subject to any contingent liabilities or
commitments that, individually or in the aggregate, have a reasonable likelihood of causing a
Material Adverse Change with respect to the Guarantor.

h. Accuracy of Information. None of the documents or information prepared by or on
behalf of any Seller or the Guarantor and provided by such Seller or the Guarantor to Buyer
relating to such Seller’s or Guarantor’s financial condition contain any statement of a material
fact with respect to such Seller or Guarantor or the Transactions that was untrue or misleading in
any material respect when made. Since the furnishing of such documents or information, there has
been no change, nor any development or event involving a prospective change known to any Seller or
Guarantor, that would render any of such documents or information untrue or misleading in any
material respect.

i. No Consents. No consent, license, approval or authorization from, or registration,
filing or declaration with, any regulatory body, administrative agency, or other governmental,
instrumentality, nor any consent, approval, waiver or notification of any creditor, lessor or other
non-governmental person, is required in connection with the execution, delivery and performance by
any Seller or Guarantor of this Agreement or the consummation by any Seller or Guarantor of any
other Program Document, other than any that have heretofore been obtained, given or made.

j. Compliance With Law; Etc. No practice, procedure or policy employed or proposed to
be employed by any Seller or the Guarantor in the conduct of its businesses violates any law,
regulation, judgment, agreement, regulatory consent, order or decree applicable to it which, if
enforced, would result in either a Material Adverse Change with respect to Guarantor or a Material
Adverse Effect.

k. Solvency; Fraudulent Conveyance. Each Seller and the Guarantor is solvent and will
not be rendered insolvent by the Transaction and, after giving effect to such Transaction, no
Seller or Guarantor will be left with an unreasonably small amount of capital with which to engage
in its business. No Seller or Guarantor intends to incur, nor believes that it has incurred, debts
beyond its ability to pay such debts as they mature. No Seller or the Guarantor is contemplating
the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the
appointment of a receiver, liquidator, conservator, trustee or similar official in respect of any
Seller or Guarantor or any of their assets. The amount of consideration being received by related
Seller upon the sale of the Purchased Assets to Buyer constitutes reasonably equivalent value and
fair consideration for such Purchased Assets. Sellers are not transferring any Purchased Assets
with any intent to hinder, delay or defraud any of their creditors. Guarantor is not transferring
any Purchased Assets with any intent to hinder, delay or defraud any of its creditors.

l. Investment Company Act Compliance. No Seller is required to be registered as an
“investment company” as defined under the Investment Company Act nor as an entity under the control
of an “investment company” as defined under the Investment Company Act.

m. Taxes. Each Seller and Guarantor has filed all federal and state tax returns which
are required to be filed and paid all taxes, including any assessments received by it, to the
extent that such taxes have become due (other than for taxes that are being contested in good faith
or for which it has established adequate reserves). Any taxes, fees and other governmental charges
payable by Sellers or Guarantor in connection with a Transaction and the execution and delivery of
the Program Documents have been paid.

n. Additional Representations. With respect to each Loan to be sold hereunder by
related Seller to Buyer, Sellers and Guarantor, jointly and severally, hereby make all of the
applicable representations and warranties set forth in Appendix A hereto as of the date the Loan
File or Wet Funding Package, as applicable, is delivered to the Custodian. Further, as of each
Purchase Date, the Sellers and the Guarantor shall be deemed to have represented and warranted in
like manner that no Seller or Guarantor has any knowledge that any such representation or warranty
either has ceased or is reasonably likely to cease to be true in a material respect as of such
date, except as otherwise stated in a Transaction Notice, any such exception to identify the
applicable representation or warranty and specify in reasonable detail the related knowledge of
each Seller or Guarantor.

o. No Broker. No Seller or Guarantor has dealt with any broker, investment banker,
agent, or other person, except for Buyer, who may be entitled to any commission or compensation in
connection with the sale of Purchased Assets pursuant to this Agreement; provided, that if any
Seller or Guarantor has dealt with any broker, investment banker, agent, or other person, except
for Buyer, who may be entitled to any commission or compensation in connection with the sale of
Purchased Assets pursuant to this Agreement, such commission or compensation shall have been paid
in full by such Seller or the Guarantor, as applicable.

p. Corporate Separateness.

(i) The capital of each Seller and Guarantor is adequate for the respective business
and undertakings of such Seller and Guarantor.

(ii) Other than as provided in this Agreement and the other Program Documents, Sellers
are not engaged in any business transactions with Guarantor or any of its Affiliates other
than transactions in the ordinary course of its business on an “arms-length” basis or
transactions among Sellers and internal reorganizations not otherwise prohibited hereunder.

(iii) The funds and assets of the Sellers are not and will not be, commingled with the
funds of any other Person.

The representations and warranties set forth in this Agreement shall survive transfer of the
Purchased Assets to Buyer and shall continue for so long as the Purchased Assets are subject to
this Agreement.

13. COVENANTS OF SELLERS AND GUARANTOR

Each of Seller and Guarantor, as applicable, hereby covenants with Buyer as follows:

a. Defense of Title. Each Seller and Guarantor warrants and will defend the right,
title and interest of Buyer in and to all Collateral against all adverse claims and demands.

b. No Amendment or Compromise. Without the prior written consent of the Buyer, no
Seller, Guarantor nor those acting on such Seller’s or Guarantor’s behalf shall amend or modify, or
waive any term or condition of, or settle or compromise any claim in respect of, any item of the
Purchased Assets, any related rights or any of the Program Documents, provided that any such party
may amend or modify a Loan if such amendment or modification does not affect the amount or timing
of any payment of principal or interest, extend its scheduled maturity date, modify its interest
rate, or constitute a cancellation or discharge of its outstanding principal balance and does not
materially and adversely affect the security afforded by the real property, finishings, fixtures,
or equipment securing the Loan.

c. No Assignment. Except as permitted herein, no Seller or any servicer shall sell,
assign, transfer or otherwise dispose of, or grant any option with respect to, or pledge,
hypothecate or grant a security interest in or lien on or otherwise encumber (except pursuant to
the Program Documents), any of the Purchased Assets or any interest therein, provided that this
Section shall not prevent any of the following: any transfer of Purchased Assets in accordance with
the Program Documents; any Hedge Instruments for the related Purchased Assets or the granting of
liens on such Hedging Instruments to other creditors in accordance with the Intercreditor
Agreement; any servicing arrangement between the Servicer and any Seller or its Affiliates; and any
forward purchase commitment or other types of take out commitment for the Purchased Assets.

d. Servicing of Loans. Sellers and Guarantor shall cause the Servicer to service, or
cause to be serviced, all Loans that are part of the Purchased Assets in accordance with prudent
servicing practices, pending any delivery of such servicing to Buyer pursuant to this Agreement,
employing at least the same procedures and exercising the same care that Servicer customarily
employs in servicing Loans for its own account. Sellers shall notify servicers of Buyer’s interest
hereunder and Sellers shall notify Buyer in writing of the name and address of all servicers of
Loans and shall identify each servicer with respect to each Purchased Asset on a loan-by-loan
basis. Buyer shall have the right to approve each servicer and the form of all Servicing Agreements
or servicing side letter agreements. Sellers shall cause each servicer to hold or cause to be held
all escrow funds collected with respect to such Loans in customary custodial accounts and shall
apply the same for the purposes for which such funds were collected. Upon notice from Buyer that an
Event of Default has occurred, the related Seller and Guarantor shall cause the Servicer to (i)
segregate all amounts collected on account of the Loans, (ii) hold such amounts collected in trust
for the benefit of the Buyer and (iii) remit such collections in accordance with the Buyer’s
written instructions. No amounts deposited into such account shall be removed without the Buyer’s
prior written consent. Upon Buyer’s request, Sellers shall provide reasonably promptly to Buyer a
letter addressed to and agreed to by each servicer of Loans, in form and substance reasonably
satisfactory to Buyer, advising such servicer of such matters as Buyer may reasonably request
relating to the Loans. If any Seller should discover that, for any reason whatsoever, Sellers or
any entity responsible to Sellers by contract for the administration and/or servicing any such Loan
has failed to perform fully Sellers’ obligations under the Program Documents or any of the
obligations of such entities with respect to the Purchased Assets, Sellers shall promptly notify
Buyer.

e. Preservation of Collateral; Collateral Value. Each Seller and Guarantor shall do
all things necessary to preserve the Collateral so that it remains subject to a first priority
perfected security interest hereunder. Without limiting the foregoing, Sellers and Guarantor will
comply with laws, rules, regulations and other laws of any Governmental Authority applicable to
Sellers or Guarantor relating to the Collateral and cause the Collateral to comply with all
applicable laws, rules, regulations and other laws of any such Governmental Authority. No Seller or
Guarantor will allow any default for which it is responsible to occur under any Collateral and each
Seller and Guarantor shall fully perform or cause to be performed when due all of its obligations
under any Collateral or the Program Documents.

f. Maintenance of Papers, Records and Files. Related Seller and Guarantor shall
require, and related Seller or Guarantor shall build, maintain and have available, a complete file
in accordance with lending industry custom and practice for each Purchased Asset. Related Seller
or Guarantor will maintain or cause to be maintained all such Records not in the possession of
Custodian in good and complete condition in accordance with industry practices and preserve them
against loss.

(i) Related Seller and Guarantor shall collect and maintain or cause to be collected
and maintained all Records relating to the Purchased Assets in accordance with industry
custom and practice, including those maintained pursuant to the preceding subsection, and
all such Records shall be in the possession of the Custodian, the Servicer, the related
Seller or Guarantor unless Buyer otherwise approves. No Seller or Guarantor will allow any
such papers, records or files that are an original or an only copy to leave Custodian’s
possession, except for individual items removed in connection with servicing a specific
Loan, in which event related Seller or Guarantor will obtain or cause to be obtained a
receipt from a financially responsible person for any such paper, record or file.

(ii) For so long as Buyer has an interest in or lien on any Purchased Asset, related
Seller and Guarantor will hold or cause to be held all related Records in trust, as the
custodian and bailee, for Buyer. Related Seller or Guarantor shall notify, or cause to be
notified, every other party holding any such Records of the interests and liens granted
hereby.

(iii) Upon reasonable advance notice from Custodian or Buyer, related Seller and
Guarantor shall (x) make any and all such Records available to Custodian or Buyer to examine
any such Records, either by its own officers or employees, or by agents or contractors, or
both, and make copies of all or any portion thereof, (y) permit Buyer or its authorized
agents to discuss the affairs, finances and accounts of related Seller or Guarantor with its
respective chief operating officer and chief financial officer and to discuss the affairs,
finances and accounts of related Seller or Guarantor with its independent certified public
accountants.

g. Financial Statements; Accountants’ Reports; Other Information. Related
Seller and Guarantor shall keep or cause to be kept in reasonable detail books and records of
account of its assets and business and shall clearly reflect therein the transfer of Purchased
Assets to Buyer. Sellers and Guarantor shall furnish or cause to be furnished or made
electronically available to Buyer the following:

(i) Financial Statements. (x) As soon as available and in any event within 90
days after the end of each fiscal year, the consolidated, audited balance sheets of
Guarantor and each Seller as of the end of each fiscal year of Guarantor (inclusive of
Sellers), and the audited financial statements of income and changes in equity of Guarantor
and each Seller, and the audited statement of cash flows of Guarantor (inclusive of
Sellers), for such fiscal year and (y) as soon as available and in any event within 45 days
after the end of each quarter (including the fourth quarter), the consolidated and
consolidating, unaudited balance sheets of Guarantor (inclusive of Sellers) as of the end of
each quarter, and the unaudited financial statements of income and changes in equity of
Guarantor (inclusive of Sellers), and the unaudited statement of cash flows of Guarantor
(inclusive of Sellers), for the portion of the fiscal year then ended, and (z) within 45
days after the end of each month, monthly consolidated and unaudited financial statements of
income and changes in equity (and, to the extent available, cash flow statements) and
balance sheets as provided in clause (y), all of which have been prepared in accordance with
GAAP and certified by such Guarantor’s and Sellers’, as applicable, chief financial officer
in the form of a compliance certificate to be delivered along with the above financial
statements. Sellers and Guarantor shall furnish or cause to be furnished to Buyer any other
financial information regarding Guarantor and/or Sellers reasonably requested by Buyer;

(ii) Loan Data. Monthly reports in form and scope satisfactory to Buyer,
setting forth data regarding the performance of the Purchased Assets for the immediately
preceding month, and such other information as Buyer may reasonably request, including,
without limitation, all collections, delinquencies, losses and recoveries related to the
Purchased Assets, any other information regarding the Purchased Assets reasonably requested
by Buyer, the performance of any loans serviced by or on behalf of each Servicer and any
other financial information regarding the Guarantor reasonably requested by Buyer.

(iii) Monthly Servicing Diskettes. On or before the second Business Day prior
to each Repurchase Date, or any other time at Buyer’s request, a Computer Medium (or any
other electronic transmission acceptable to Buyer) in a format acceptable to Buyer
containing such information with respect to the Purchased Assets as Buyer may reasonably
request upon reasonable prior notice.

(iv) Certifications. Each Seller shall execute and deliver a monthly
certification substantially in the form of Exhibit A-1 attached hereto and Guarantor shall
execute and deliver a quarterly certification substantially in the form of Exhibit A-2
attached hereto.

h. Notice of Material Events. Each Seller and Guarantor shall promptly inform Buyer in
writing of any of the following:

(i) any Default, Event of Default or default or breach by any Seller or Guarantor of
any other material obligation under any Program Document, or the occurrence or existence of
any event or circumstance that a Seller or Guarantor with the passage of time expects to
have a reasonable likelihood of becoming an Event of Default;

(ii) any material change in the insurance coverage required of any Seller or Guarantor
or any other Person pursuant to any Program Document, with copy of evidence of same
attached;

(iii) any material dispute, litigation, investigation, proceeding or suspension between
any Seller or Guarantor, on the one hand, and any Governmental Authority or any other Person
on the other;

(iv) any Material Adverse Change in accounting policies or financial reporting
practices of Guarantor;

(v) the occurrence of any material employment dispute or licensing dispute and a
description of the strategy for resolving it; and

(vi) any event, circumstance or condition that has resulted, or has a reasonable
likelihood of resulting in either a Material Adverse Change with respect to Guarantor or a
Material Adverse Effect.

i. Maintenance of Licenses. Each Seller and Guarantor shall maintain, all licenses,
permits or other approvals necessary for each Seller and Guarantor to conduct its business and to
perform its obligations under the Program Documents, and each Seller and Guarantor shall conduct
its business strictly in accordance with applicable law.

j. Taxes. (i) All payments made by the Sellers under this Agreement shall be made
free and clear of, and without deduction or withholding for or on account of, any present or
future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities (including
penalties, interest and additions to tax) with respect thereto imposed by any Governmental
Authority thereof or therein, excluding income taxes, branch profits taxes, franchise taxes or any
other tax imposed on the Buyer’s net income by the United States, a state, a foreign jurisdiction
under the laws of which the Buyer is organized or in which its applicable lending office (“Excluded
Taxes”), or any political subdivision thereof, all of which shall be paid by the Seller for their
own account not later than the date when due. If a Seller is required by law or regulation to
deduct or withhold any taxes (other than Excluded Taxes) from or in respect of any amount payable
hereunder, it shall: (a) make such deduction or withholding; (b) pay the amount so deducted or
withheld to the appropriate Governmental Authority not later than the date when due; (c) deliver to
Buyer, promptly, original tax receipts and other evidence satisfactory to Buyer of the payment when
due of the full amount of such taxes; and (d) pay to the Buyer such additional amounts as may be
necessary so that such Buyer receives, free and clear of all taxes, a net amount equal to the
amount it would have received under this Agreement, as if no such deduction or withholding had been
made.

(ii) Each Seller shall pay and discharge or cause to be paid and discharged, when due,
all taxes, assessments and governmental charges or levies imposed upon it or upon its income
and profits or upon any of its property, real, personal or mixed (including without
limitation, the Purchased Assets) or upon any part thereof, as well as any other lawful
claims which, if unpaid, might become a Lien upon such properties or any part thereof,
except for any such taxes, assessments and governmental charges, levies or claims as are
appropriately contested in good faith by appropriate proceedings diligently conducted and
with respect to which adequate reserves are provided.

(iii) Each Seller shall file on a timely basis (including any extensions) all federal,
and material state and local tax and information returns, reports and any other information
statements or schedules required to be filed by or in respect of it.

k. Nature of Business. No Seller or Guarantor shall make any material change in the
nature of its business as carried on at the date hereof.

l. Limitation on Distributions. If a Default has occurred and is continuing, no
Seller or Guarantor shall pay any dividends or distributions with respect to any capital stock or
other equity interests in any Seller or Guarantor, whether now or hereafter outstanding, or make
any other distribution in respect thereof, either directly or indirectly, whether in cash or
property or in obligations of any Seller or Guarantor provided that a Seller or Guarantor may pay
distributions or dividends solely by way of issuance of additional stock in lieu of cash.

m. Predatory Lending. Sellers will comply with any and all requirements of any
federal, state or local predatory and abusive lending laws applicable to the origination and
servicing of mortgage loans, and Sellers have and shall maintain in their possession, available for
the inspection of the Buyer or its designees, and shall deliver to the Buyer or its designees,
within a commercially reasonable time period following a request therefor, evidence of compliance
with such requirements.

n. Merger of Guarantor. Guarantor shall not at any time, directly or indirectly, (i)
liquidate or dissolve or enter into any consolidation or merger or be subject to a Change in
Control without Buyer’s prior consent; (ii) form or enter into any partnership, joint venture,
syndicate or other combination which would have a Material Adverse Effect; or (iii) make any
Material Adverse Change with respect to the Guarantor.

o. Insurance. Each Seller and Guarantor will, and shall cause the Servicer to, obtain
and maintain insurance with responsible companies in such amounts and against such risks as are
customarily carried by business entities engaged in similar businesses similarly situated, and will
furnish Buyer on request full information as to all such insurance, and provide within fifteen (15)
days after receipt of such request the certificates or other documents evidencing renewal of each
such policy. Guarantor shall continue to maintain coverage, for itself and its subsidiaries, that
encompasses employee dishonesty, forgery or alteration, theft, disappearance and destruction,
robbery and safe burglary, property (other than money and securities), and computer fraud in an
aggregate amount of at least $1,000,000.

p. Affiliate Transaction. No Seller or Guarantor will at any time, directly or
indirectly, sell, lease or otherwise transfer any property or assets to, or otherwise acquire any
property or assets from, or otherwise engage in any transactions with, any of their Affiliates
unless the terms thereof are no less favorable to such Seller or Guarantor, as applicable, than
those that could be obtained at the time of such transaction in an arm’s length transaction with a
Person who is not such an Affiliate.

q. Change of Fiscal Year. No Seller or Guarantor will at any time, directly or
indirectly, except upon ninety (90) days’ prior written notice to Buyer, change the date on which
such Seller’s or Guarantor’s fiscal year begins from such Seller’s or Guarantor’s current fiscal
year beginning date.

r. Facility Fee. Sellers agree to pay to Buyer on the date of execution of this
Agreement, a facility fee in the amount of the Facility Fee Amount (“Facility Fee”), such payment
to be made in United States dollars, in immediately available funds, without deduction, set-off or
counterclaim. The Buyer may, in its sole discretion, net such commitment fee from the proceeds of
any Purchase Price payable to the Seller.

s. Underwriting Guidelines. In the event that Sellers make any material amendment or
modification to the Underwriting Guidelines: (i) Sellers shall promptly deliver to the Buyer a
complete copy of the materially amended or modified Underwriting Guidelines, and (ii) the Buyer
may, at its sole option and discretion, refrain from entering into any further Transactions with
respect to Loans originated under the materially amended or modified Underwriting Guidelines, but
not with respect to Loans that comply with the Underwriting Guidelines approved hereunder.

t. Cooperative Loans. With respect to each Cooperative Loan, in the event that new,
replacement, substitute or additional Stock Certificates are issued with respect to existing
Cooperative Shares, the related Seller immediately shall deliver to the Custodian the new Stock
Certificates, together with the related Stock Powers in blank. Such new Stock Certificates shall
be subject to the related Pledge Instruments and shall be subject to all of the terms, covenants
and conditions of this Agreement.

u. MERS. Each Seller will and will cause the Servicer to comply in all material
respects with the rules and procedures of MERS in connection with the servicing of the MERS
Designated Mortgage Loans for as long as such Loans are registered with MERS.

v. Delivering of Servicing Rights. With respect to the Servicing Rights and Records
of each Loan, Sellers and Guarantor shall deliver such Servicing Rights and Records to the designee
of Buyer, within 75 days of a Purchase Date, unless otherwise stated in writing by Buyer; provided
that on each Repurchase Date that is subject to a new Transaction, such delivery requirement is
deemed restated for such new Transaction (and the immediately preceding delivery requirement is
deemed to be rescinded) in the absence of directions to the contrary from Buyer, and a new 75-day
period is deemed to commence as of such Repurchase Date. The Sellers’ and Guarantor’s transfer of
the Servicing Rights and Records under this Section shall be in accordance with customary and
prudent mortgage banking standards in the industry for the delivery of loans similar to the Loans.

14. REPURCHASE DATE PAYMENTS/COLLECTIONS

On each Repurchase Date, related Seller shall remit or shall cause to be remitted to Buyer the
Repurchase Price, together with any other Obligations then due and payable.

15. REPURCHASE OF PURCHASED ASSETS, CHANGE OF LAW

a. Upon discovery by any Seller or Guarantor of a breach of any of the representations and
warranties set forth in Appendix A hereto, such Seller or Guarantor shall give prompt written
notice thereof to Buyer. Upon any such discovery by Buyer, Buyer will notify Sellers. It is
understood and agreed that the representations and warranties set forth in Appendix A hereto shall
survive delivery of the respective Loan Files to the Custodian and shall inure to the benefit of
Buyer. The fact that Buyer has conducted or has failed to conduct any partial or complete due
diligence investigation in connection with its purchase of any Purchased Asset shall not affect
Buyer’s right to demand repurchase as provided under this Agreement. The related Seller shall
within two (2) Business Days of the earlier of the related Seller’s or Guarantor’s discovery or
either related Seller or Guarantor receiving notice, with respect to any Purchased Asset, of (i)
any breach of a representation or warranty contained in Appendix A hereto or (ii) any failure to
deliver any of the items required to be delivered as part of the Loan File within the time period
required for delivery pursuant to the Custody Agreement, promptly cure such breach or delivery
failure in all material respects. If within two (2) Business Days after the earlier of related
Seller’s or Guarantor’s discovery of such breach or delivery failure or related Seller or Guarantor
receiving notice thereof that such breach or delivery failure has not been remedied by the related
Seller, such Seller shall promptly upon receipt of written instructions from Buyer, at Buyer’s
option, either (i) purchase such Purchased Asset at a purchase price equal to the Repurchase Price
with respect to such Purchased Asset by wire transfer to the account designated by Buyer, or (ii)
transfer comparable Substitute Assets to Buyer, as provided in Section 16 hereof.

b. If Buyer determines that the introduction of, any change in, or the interpretation or
administration of any requirement of law has made it unlawful or commercially impracticable to
engage in any Transactions with a Pricing Rate based on LIBOR, then related Seller (i) shall, upon
its receipt of notice of such fact and demand from Buyer (with a copy of such notice to Custodian),
repurchase the Purchased Assets subject to the Transaction on the next succeeding Business Day
and, at related Seller’s election, concurrently enter into a new Transaction with Buyer with a
Pricing Rate based on the Prime Rate plus the margin set forth in the Side Letter as part of the
Pricing Rate and (ii) may elect, by giving notice to Buyer and Custodian, that all new Transactions
shall have Pricing Rates based on the Prime Rate plus such margin.

c. If Buyer determines in its sole discretion that any Change in Law or any change in
accounting rules regarding capital requirements has or would have the effect of reducing the rate
of return on Buyer’s capital or on the capital of any Affiliate of Buyer as a consequence of such
Change in Law or change in accounting rules on this Agreement, then from time to time related
Seller will compensate Buyer or Buyer’s Affiliate, as applicable, for such reduced rate of return
suffered as a consequence of such Change in Law or change in accounting rules on terms similar to
those imposed by Buyer on its other similarly affected customers. Buyer shall provide Sellers with
prompt notice as to any Change in Law or change in accounting rules. Notwithstanding any other
provisions in this Agreement, in the event of any such Change in Law or change in accounting rules
Sellers will have the right to terminate all Transactions then outstanding without any prepayment
penalty as of a date selected by Sellers, which date shall be prior to the then applicable
Repurchase Date and which date shall thereafter for all purposes hereof be deemed to be the
Repurchase Date and Sellers shall be entitled to a pro rata refund of the Facility Fee, which
refund shall equal the Facility Fee Amount, multiplied by a fraction, the numerator of which shall
be the number of days remaining in the facility under this Agreement and the denominator of which
shall be 360.

16. SUBSTITUTION

Related Seller may, subject to agreement with and acceptance by Buyer, substitute other assets
which are substantially the same as the Purchased Assets (the “Substitute Assets”) for any
Purchased Assets. Such substitution shall be made by transfer to Buyer of such other Substitute
Assets and transfer to related Seller of such Purchased Assets. After substitution, the Substitute
Assets shall be deemed to be Purchased Assets.

17. REPURCHASE TRANSACTIONS

Buyer may, in its sole election, engage in repurchase transactions with the Purchased Assets
or otherwise pledge, hypothecate, assign, transfer or otherwise convey the Purchased Assets with a
counterparty of Buyer’s choice, in all cases subject to Buyer’s obligation to reconvey the
Purchased Assets (and not substitutes therefor) on the Repurchase Date. In the event Buyer engages
in a repurchase transaction with any of the Purchased Assets or otherwise pledges or hypothecates
any of the Purchased Assets, Buyer shall have the right to assign to Buyer’s counterparty any of
the applicable representations or warranties in Appendix A hereto and the remedies for breach
thereof, as they relate to the Purchased Assets that are subject to such repurchase transaction.

18. EVENTS OF DEFAULT

With respect to any Transactions covered by or related to this Agreement, the occurrence of
any of the following events shall constitute an “Event of Default”:

a. Related Seller fails to transfer the Purchased Assets to Buyer on the applicable Purchase
Date (provided Buyer has tendered the related Purchase Price);

b. Related Seller either fails to repurchase the Purchased Assets on the applicable Repurchase
Date or fails to perform its obligations under Section 6;

c. Any Seller, Guarantor or Servicer shall fail to perform, observe or comply with any other
material term, covenant or agreement contained in the Program Documents (other than Section 12(n)
hereof and Appendix A hereto) and such failure is not cured within the time period expressly
provided or, if no such cure period is provided, within three (3) Business Days of the earlier of
(i) such party’s receipt of written notice from Buyer or Custodian of such breach or (ii) the date
on which such party obtains notice or knowledge of the facts giving rise to such breach;

d. Any representation or warranty made by a Seller or Guarantor (or any of Sellers’ or
Guarantor’s officers) in the Program Documents or in any other document delivered in connection
therewith (other than the representations or warranties in Appendix A hereto) shall have been
incorrect or untrue in any material respect when made or repeated or deemed to have been made or
repeated;

e. Any Seller, Guarantor, or any of Sellers’ or Guarantor’s Subsidiaries shall fail (i) to pay
any Seller’s, Guarantor’s, or Sellers’ or Guarantor’s Subsidiaries’ Indebtedness (aggregating in
excess of $10,000,000 with respect to Guarantor or Guarantor and its Subsidiaries, taken as a
whole), or any interest or premium thereon when due (whether by scheduled maturity, requirement
prepayment, acceleration, demand or otherwise), or (ii) to make any payment when due under any
Seller’s, Guarantor’s, or Sellers’ or Guarantor’s Subsidiaries’ Guarantee of another person’s
Indebtedness for borrowed money (aggregating in excess of $10,000,000 with respect to Guarantor or
Guarantor and its Subsidiaries, taken as a whole), and, in either case, such failure shall entitle
any related counterparty to declare any such Indebtedness or Guarantee to be due and payable, or
required to be prepaid (other than by a regularly scheduled required prepayment), prior to the
stated maturity thereof;

f. A custodian, receiver, conservator, liquidator, trustee, sequestrator or similar official
for any Seller, Guarantor or any of Sellers’ or Guarantor’s Subsidiaries, or of any Sellers’,
Guarantor’s or their respective Property (as a debtor or creditor protection procedure), is
appointed or takes possession of such property; or Seller, Guarantor or any of Sellers’ or
Guarantor’s Subsidiaries generally fails to pay any Seller’s, Guarantor’s or Sellers’ or
Guarantor’s Subsidiaries’ debts as they become due; or any Seller, Guarantor or any of Sellers’ or
Guarantor’s Subsidiaries is adjudicated bankrupt or insolvent; or an order for relief is entered
under the Federal Bankruptcy Code, or any successor or similar applicable statute, or any
administrative insolvency scheme, against any Seller, Guarantor or any of Sellers’ or Guarantor’s
Subsidiaries; or any Sellers’, Guarantor’s or Sellers’ or Guarantor’s Subsidiaries’ Property is
sequestered by court or administrative order; or a petition is filed against any Seller, Guarantor
or any of Sellers’ or Guarantor’s Subsidiaries under any bankruptcy, reorganization, arrangement,
insolvency, readjustment of debt, dissolution, moratorium, delinquency or liquidation law of any
jurisdiction, whether now or subsequently in effect;

g. Any Seller, Guarantor or any Sellers’ or Guarantor’s Subsidiaries files a voluntary
petition in bankruptcy, seeks relief under any provision of any bankruptcy, reorganization,
moratorium, delinquency, arrangement, insolvency, readjustment of debt, dissolution or liquidation
law of any jurisdiction whether now or subsequently in effect; or consents to the filing of any
petition against it under any such law; or consents to the appointment of or taking possession by a
custodian, receiver, conservator, trustee, liquidator, sequestrator or similar official for any
Seller, Guarantor or any of Sellers’ or Guarantor’s Subsidiaries, or of all or any part of any
Seller’s, Guarantor’s or Sellers’ or Guarantor’s Subsidiaries’ Property; or makes an assignment for
the benefit of any Seller, Guarantor or Sellers’ or Guarantor’s Subsidiaries’ creditors;

h. Any final, nonappealable judgment or order for the payment of money in excess of $2,500,000
is rendered against any Seller, Guarantor or any of Sellers’ or Guarantor’s Subsidiaries and
remains undischarged or unsatisfied after the passage of 30 days following the date on which it is
entered;

i. Any Governmental Authority or any person, agency or entity acting or purporting to act
under governmental authority shall have taken any action to condemn, seize or appropriate, or to
assume custody or control of, all or any substantial part of the Property of any Seller, Guarantor
or any of Sellers’ or Guarantor’s Subsidiaries, or shall have taken any action to displace the
executive management of any Seller, Guarantor or any of Sellers’ or Guarantor’s Subsidiaries (and
such action results or is likely to result in a Material Adverse Change with respect to the
Guarantor) or to curtail its authority in the conduct of the business of any Seller, Guarantor or
any of Sellers’ or Guarantor’s Subsidiaries, or takes any action in the nature of enforcement to
remove, limit or restrict the approval of any Seller, Guarantor or any of Sellers’ or Guarantor’s
Subsidiaries as an issuer, buyer or a seller/servicer of Loans or securities backed thereby;

j. Reserved;

k. Any Seller, Guarantor or any of Sellers’ or Guarantor’s Subsidiaries shall default under,
or fail to perform as requested under, or shall otherwise breach the material terms of any
instrument, agreement or contract relating to Indebtedness (aggregating in excess of $10,000,000
with respect to Guarantor or Guarantor and its Subsidiaries, taken as a whole), and such default,
failure or breach shall entitle any counterparty to declare such Indebtedness to be due and payable
prior to the maturity thereof;

l. In the reasonable good faith judgment of Buyer, any Material Adverse Change with respect to
Guarantor;

m. Any Seller or Guarantor shall admit in writing its inability to, or intention not to,
perform any of such Seller’s or Guarantor’s respective material Obligations;

n. Except as expressly permitted in this Agreement, any Seller or Guarantor dissolves, merges
or consolidates with another entity, or sells, transfers, or otherwise disposes of a material
portion of such Seller’s or Guarantor’s (as applicable) business or assets unless Buyer’s written
consent is given;

o. This Agreement shall for any reason cease to create a valid, first priority security
interest or ownership interest upon transfer in any material portion of the Purchased Assets or
Collateral purported to be covered hereby;

p. Any Seller’s or Guarantor’s audited annual financial statements or the notes thereto or
other opinions or conclusions stated therein shall be qualified or limited by reference to the
status of such Seller or Guarantor as a “going concern” or a reference of similar import or shall
indicate Guarantor has a negative net worth or is insolvent;

q. A Change of Control of any Seller (unless otherwise permitted hereunder) or Guarantor shall
have occurred without the prior written approval of Buyer;

r. An Event of Default shall have occurred and is continuing under any of the other Program
Documents;

s. At any time, the ratio of the Guarantor’s Total Indebtedness to Adjusted Tangible Net Worth
shall exceed 15:1;

t. Buyer shall reasonably request information regarding the financial well-being of any Seller
or Guarantor and such information shall not have been provided within a commercially reasonable
timeframe;

u. At the end of any month, the Guarantor fails to maintain at least $60,000,000 on a
consolidated basis of Liquid Assets;

v. At any time the Adjusted Tangible Net Worth of the Guarantor is less than the sum of (i)
$750,000,000; and (ii) 50% of all increases in the Guarantor’s total stockholder equity as a
result of issuances in common stock of the Guarantor since November 1, 2004;

w. After such time as any Seller or Guarantor has elected to be treated as a REIT, the failure
of such Seller or Guarantor (as applicable) to continue to be (i) qualified as a REIT as defined in
Section 856 of the Code and (ii) entitled to a dividend paid deduction under Section 857 of the
Code with respect to dividends paid by it with respect to each taxable year for which it claims a
deduction on its Form 1120 — REIT filed with the United States Internal Revenue Service for such
year, or the entering into by such Seller or Guarantor of any material “prohibited transactions” as
defined in Sections 857(b) and 856(c) of the Code; and

x. After such time as any Seller or Guarantor has elected to be treated as a REIT, the failure
of such Seller or Guarantor (as applicable) to satisfy any of the following asset or income tests
and Buyer has delivered notice of an Event of Default to such Seller or Guarantor with respect
thereto:

(i) At the close of each taxable year, at least 75 percent of such Seller’s or
Guarantor’s gross income consists of (i) “rents from real property” within the meaning of
Section 856(c)(3)(A) of the Code, (ii) interest on obligations secured by mortgages on real
property or on interests in real property, within the meaning of Section 856(c)(3)(B) of the
Code, (iii) gain from the sale or other disposition of real property (including interests in
real property and interests in mortgages on real property) which is not property described
in Section 1221(a)(1) of the Code, within the meaning of Section 856(c)(3)(C) of the Code,
(iv) dividends or other distributions on, and gain (other than gain from “prohibited
transactions” within the meaning of Section 857(b)(6)(B)(iii) of the Code) from the sale or
other disposition of, transferable shares (or transferable certificates of beneficial
interest) in other qualifying REITs within the meaning of Section 856(d)(3)(D) of the Code,
and (v) amounts described in Sections 856(c)(3)(E) through 856(c)(3)(I) of the Code.

(ii) At the close of each taxable year, at least 95 percent of such Seller’s or
Guarantor’s gross income consists of (i) the items of income described in paragraph 1 hereof
(other than those described in Section 856(c)(3)(I) of the Code), (ii) gain realized from
the sale or other disposition of stock or securities which are not property described in
Section 1221(a)(1) of the Code, (iii) interest, (iv) dividends, and (v) income derived from
payments to the Guarantor on interest rate swap or cap agreements, options, futures
contracts, forward rate agreements and other similar financial instruments entered into to
reduce the interest rate risks with respect to any indebtedness incurred or to be incurred
to acquire or carry real estate assets, or gain from the sale or other disposition of such
an investment as described in section 856(c)(5)(G), in each case within the meaning of
Section 856(c)(2) of the Code.

(iii) At the close of each quarter of such Seller’s or Guarantor’s taxable year, at
least 75 percent of the value of such Seller’s or Guarantor’s total assets (as determined in
accordance with Treasury Regulations Section 1.856-2(d)) has consisted of and will consist
of real estate assets within the meaning of Sections 856(c)(4) and 856(c)(5)(B) of the Code,
cash and cash items (including receivables which arise in the ordinary course of such
Seller’s or Guarantor’s operations, but not including receivables purchased from another
person), and Government Securities.

(iv) At the close of each quarter of such Seller’s or Guarantor’s taxable years, (a)
not more than 25 percent of such Seller’s or Guarantor’s total asset value will be
represented by securities (other than those described in paragraph 3) , (b) not more than 20
percent of such Seller’s or Guarantor’s total asset value will be represented by securities
of one or more taxable REIT subsidiaries, and (c) (i) not more than 5 percent of the value
of such Seller’s or Guarantor’s total assets will be represented by securities of any one
issuer (other than Government Securities and securities of taxable REIT subsidiaries), and
(ii) no Seller or Guarantor will hold securities possessing more than 10 percent of the
total voting power or value of the outstanding securities of any one issuer (other than
Government Securities, securities of taxable REIT subsidiaries, and securities of a
qualified REIT subsidiary within the meaning of Section 856(i) of the Code).

19. REMEDIES

Upon the occurrence of an Event of Default, Buyer, at its option (which option shall be
deemed to have been exercised immediately upon the occurrence of an Event of Default pursuant to
Section 18(f) or (g) hereof), shall have any or all of the following rights and remedies, which may
be exercised by Buyer:

a. The Repurchase Date for each Transaction hereunder shall, if it has not already occurred,
be deemed immediately to occur (except that, in the event that the Purchase Date for any
Transaction has not yet occurred as of the date of such exercise or deemed exercise, such
Transaction shall be deemed immediately canceled).

b. Sellers’ obligations hereunder to repurchase all Purchased Assets at the Repurchase Price
therefor on the Repurchase Date in such Transactions shall thereupon become immediately due and
payable; all Income paid after such exercise or deemed exercise shall be remitted to and retained
by Buyer and applied to the aggregate Repurchase Prices and any other amounts owing by Sellers
hereunder; Sellers and Guarantor shall immediately deliver to Buyer or its designee any and all
Records relating to the Purchased Assets subject to such Transaction then in Sellers’ and
Guarantor’s possession and/or control; and all right, title and interest in and entitlement to such
Purchased Assets and Servicing Rights thereon shall be deemed transferred to Buyer.

Buyer may (A) sell, on or following the Business Day following the date on which the
Repurchase Price became due and payable pursuant to Section 19(b) without notice or demand of any
kind, at a public or private sale and at such price or prices as Buyer may reasonably deem
satisfactory any or all Purchased Assets or (B) in its sole discretion elect, in lieu of selling
all or a portion of such Purchased Assets, to give Sellers credit for such Purchased Assets in an
amount equal to the Market Value of the Purchased Assets against the aggregate unpaid Repurchase
Price and any other amounts owing by Sellers hereunder. The Sellers shall remain liable to the
Buyer for any amounts that remain owing to Buyer following a sale or credit under the preceding
sentence. The proceeds of any disposition of Purchased Assets shall be applied first, to the
reasonable costs and expenses incurred by Buyer in connection with or as a result of an Event of
Default; second, to Breakage Costs, costs of cover and/or related hedging transactions; third, to
the aggregate Repurchase Prices; and fourth, to all other Obligations.

The parties recognize that it may not be possible to purchase or sell all of the Purchased
Assets on a particular Business Day, or in a transaction with the same purchaser, or in the same
manner because the market for such Purchased Assets may not be liquid. In view of the nature of the
Purchased Assets, the parties agree that liquidation of a Transaction or the underlying Purchased
Assets does not require a public purchase or sale and that a good faith private purchase or sale
shall be deemed to have been made in a commercially reasonable manner. Accordingly, Buyer may elect
the time and manner of liquidating any Purchased Asset and nothing contained herein shall obligate
Buyer to liquidate any Purchased Asset on the occurrence of an Event of Default or to liquidate all
Purchased Assets in the same manner or on the same Business Day or constitute a waiver of any right
or remedy of Buyer. Notwithstanding the foregoing, the parties to this Agreement agree that the
Transactions have been entered into in consideration of and in reliance upon the fact that all
Transactions hereunder constitute a single business and contractual obligation and that each
Transaction has been entered into in consideration of the other Transactions.

In addition to its rights hereunder, Buyer shall have the right to proceed against any of
Sellers’ assets which may be in the possession of Buyer, any of Buyer’s Affiliates or its designee
(including the Custodian), including the right to liquidate such assets and to set-off the proceeds
against monies owed by Sellers to Buyer pursuant to this Agreement. Buyer may set off cash, the
proceeds of the liquidation of the Purchased Assets and Additional Purchased Assets, any other
Collateral or its proceeds and all other sums or obligations owed by Buyer to Sellers against all
of Sellers’ Obligations to Buyer, whether under this Agreement, under a Transaction, or under any
other agreement between the parties, or otherwise, whether or not such Obligations are then due,
without prejudice to Buyer’s right to recover any deficiency.

The Buyer shall have the right to obtain physical possession of the Records and all other
files of the Sellers relating to the Purchased Assets and all documents relating to the Purchased
Assets which are then or may thereafter come into the possession of the Sellers or any third party
acting for the Sellers and the Sellers shall deliver to the Buyer such assignments as the Buyer
shall request.

Buyer may direct all Persons servicing the Purchased Assets to take such action with respect
to the Purchased Assets as Buyer determines appropriate.

Each Seller and Guarantor shall cause all sums received by it with respect to the Purchased
Assets to be deposited with Custodian (or such other Person as Buyer may direct) after receipt
thereof.

Buyer shall without regard to the adequacy of the security for the Obligations, be entitled to
the appointment of a receiver by any court having jurisdiction, without notice, to take possession
of and protect, collect, manage, liquidate, and sell the Purchased Assets and any other Collateral
or any portion thereof, collect the payments due with respect to the Purchased Assets and any other
Collateral or any portion thereof, and do anything that Buyer is authorized hereunder to do.
Sellers shall pay all costs and expenses incurred by Buyer in connection with the appointment and
activities of such receiver.

Buyer may enforce its rights and remedies hereunder without prior judicial process or hearing,
and Sellers hereby expressly waive, to the extent permitted by law, any right Sellers might
otherwise have to require Buyer to enforce its rights by judicial process. Sellers also waive, to
the extent permitted by law, any defense Sellers might otherwise have to the Obligations, arising
from use of nonjudicial process, enforcement and sale of all or any portion of the Purchased Assets
and any other Collateral or from any other election of remedies. Sellers recognize that nonjudicial
remedies are consistent with the usages of the trade, are responsive to commercial necessity and
are the result of a bargain at arm’s length.

In addition to all the rights and remedies specifically provided herein, Buyer shall have all
other rights and remedies provided by applicable federal, state, foreign, and local laws, whether
existing at law, in equity or by statute including, without limitation, all rights and remedies
available to a purchaser/secured party under the Uniform Commercial Code

Upon the occurrence of an Event of Default, Buyer shall have, except as otherwise expressly
provided in this Agreement, the right to exercise any of its rights and/or remedies without
presentment, demand, protest or further notice of any kind other than as expressly set forth
herein, all of which are hereby expressly waived by Sellers.

Sellers hereby authorize Buyer, at Sellers’ expense, to file such financing statement or
statements relating to the Purchased Assets and the Collateral without Sellers’ signature thereon
as Buyer at its option may deem appropriate, and appoints Buyer as Sellers’ attorney-in-fact to
execute any such financing statement or statements in Sellers’ name and to perform all other acts
which Buyer deems appropriate to perfect and continue the lien and security interest granted hereby
and to protect, preserve and realize upon the Purchased Assets and the Collateral, including, but
not limited to, the right to endorse notes, complete blanks in documents and execute assignments on
behalf of Sellers as its attorney-in-fact. This power of attorney is coupled with an interest and
is irrevocable without Buyer’s consent.

20. DELAY NOT WAIVER; REMEDIES ARE CUMULATIVE

No failure on the part of Buyer to exercise, and no delay in exercising, any right, power or
remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by
Buyer of any right, power or remedy hereunder preclude any other or further exercise thereof or the
exercise of any other right, power or remedy. All rights and remedies of Buyer provided for herein
are cumulative and in addition to any and all other rights and remedies provided by law, the
Program Documents and the other instruments and agreements contemplated hereby and thereby, and are
not conditional or contingent on any attempt by Buyer to exercise any of its rights under any other
related document. Buyer may exercise at any time after the occurrence of an Event of Default one or
more remedies, as it so desires, and may thereafter at any time and from time to time exercise any
other remedy or remedies.

21. USE OF EMPLOYEE PLAN ASSETS

No assets of an employee benefit plan subject to any provision of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”) shall be used by either party hereto in a
Transaction.

22. INDEMNITY

a. Each Seller and Guarantor agrees to pay on demand (i) all reasonable out-of-pocket costs
and expenses of Buyer in connection with the preparation, execution, delivery, modification,
administration and amendment of the Program Documents (including, without limitation, (A) all
collateral review and UCC search and filing fees and expenses and (B) the reasonable fees and
expenses of counsel for Buyer with respect to advising Buyer as to its rights and responsibilities,
or the perfection, protection or preservation of rights or interests, under this Agreement, with
respect to negotiations with Sellers or Guarantor or with other creditors of Sellers or Guarantor
or any of their Subsidiaries arising out of any Default or any events or circumstances that may
rise to a Default and with respect to presenting claims in or otherwise participating in or
monitoring any bankruptcy, insolvency or other similar proceeding involving creditors’ rights
generally and any proceeding ancillary thereto) and (ii) all costs and expenses of Buyer in
connection with the enforcement of this Agreement (including any waivers), whether in any action,
suit or litigation, any bankruptcy, insolvency or other similar proceeding affecting creditors’
rights generally (including, without limitation, the reasonable fees and expenses of counsel for
Buyer) whether or not the transactions contemplated hereby are consummated.

b. Each Seller and Guarantor agrees to indemnify and hold harmless Buyer and each of its
respective Affiliates and their respective officers, directors, employees, agents and advisors
(each, an “Indemnified Party”) from and against (and will reimburse each Indemnified Party as the
same is incurred) any and all third party claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel) that may be incurred by or
asserted or awarded against any Indemnified Party, in each case arising out of or in connection
with or by reason of (including, without limitation, in connection with any investigation,
litigation or other proceeding (whether or not such Indemnified Party is a party thereto) relating
to, resulting from or arising out of any of the Program Documents and all other documents related
thereto, any breach of a representation or warranty of Sellers or Guarantor or Sellers’ or
Guarantor’s officer in this Agreement or any other Program Document, and all actions taken pursuant
thereto) (i) the Transactions, the actual or proposed use of the proceeds of the Transactions, this
Agreement or any of the transactions contemplated thereby, including, without limitation, any
acquisition or proposed acquisition, (ii) the actual or alleged violation of any federal, state,
municipal or local predatory lending laws, or (iii) the actual or alleged presence of hazardous
materials on any Property or any environmental action relating in any way to any Property, except
to the extent such claim, damage, class, liability or expense is found in a final, non-appealable
judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross
negligence or willful misconduct or is the result of a claim made by any Seller or Guarantor
against the Indemnified Party, and such Seller or Guarantor is ultimately the successful party in
any resulting litigation or arbitration. Each Seller and Guarantor also agrees not to assert any
claim against Buyer or any of its Affiliates, or any of their respective officers, directors,
employees, attorneys and agents, on any theory of liability, for special, indirect, consequential
or punitive damages arising out of or otherwise relating to the Program Documents, the actual or
proposed use of the proceeds of the Transactions, this Agreement or any of the transactions
contemplated thereby. THE FOREGOING INDEMNITY AND AGREEMENT NOT TO ASSERT CLAIMS EXPRESSLY APPLIES,
WITHOUT LIMITATION, TO THE NEGLIGENCE (BUT NOT GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE
INDEMNIFIED PARTIES.

c. Without limitation on the provisions of Section 4, if any payment of the Repurchase Price
of any Transaction is made by any Seller other than on the then scheduled Repurchase Date thereto
as a result of an acceleration of the Repurchase Date pursuant to Section 19 or for any other
reason, such Seller shall, except as otherwise provided in Sections 15(c) and 24, upon demand by
Buyer, pay to Buyer any Breakage Costs incurred as of a result of such payment.

d. If any Seller fails to pay when due any costs, expenses or other amounts payable by it
under this Agreement, including, without limitation, reasonable fees and expenses of counsel and
indemnities, such amount may be paid on behalf of such Seller by Buyer, in its sole discretion and
Sellers shall remain liable for any such payments to Buyer. No such payments to Buyer shall be
deemed a waiver of any of Buyer’s rights under the Program Documents.

e. Without prejudice to the survival of any other agreement of Sellers hereunder, the
covenants and obligations of Sellers contained in this Section shall survive the payment in full of
the Repurchase Price and all other amounts payable hereunder and delivery of the Purchased Assets
by Buyer against full payment therefor.

23. WAIVER OF REDEMPTION AND DEFICIENCY RIGHTS

Sellers hereby expressly waive, to the fullest extent permitted by law, every statute of
limitation on a deficiency judgment, any reduction in the proceeds of any Purchased Assets as a
result of restrictions upon Buyer or Custodian contained in the Program Documents or any other
instrument delivered in connection therewith, and any right that it may have to direct the order in
which any of the Purchased Assets shall be disposed of in the event of any disposition pursuant
hereto.

24. REIMBURSEMENT

All sums reasonably expended by Buyer in connection with the exercise of any right or remedy
provided for herein shall be and remain Sellers’ obligation. Sellers agree to pay, with interest at
the Default Rate, to the extent that an Event of Default has occurred, the reasonable out-of-pocket
expenses and reasonable attorneys’ fees incurred by Buyer and/or Custodian in connection with the
preparation, enforcement (including any waivers), administration and amendments of the Program
Documents (regardless of whether a Transaction is entered into hereunder), the taking of any
action, including a Guarantor action, required or permitted to be taken by Buyer (without
duplication to Buyer) and/or Custodian pursuant thereto, any “due diligence” or loan agent reviews
conducted by Buyer or on its behalf or by refinancing or restructuring in the nature of a
“workout.” If Buyer determines that, due to the introduction of, any change in, or the compliance
by Buyer with (i) any eurocurrency reserve requirement or (ii) the interpretation of any law,
regulation or any guideline or request from any central bank or other Governmental Authority
(whether or not having the force of law), there shall be an increase in the cost to Buyer in
engaging in the present or any future Transactions, then Sellers agree to pay to Buyer, from time
to time, upon demand by Buyer (with a copy to Custodian) the actual cost of additional amounts as
specified by Buyer to compensate Buyer for such increased costs. Notwithstanding any other
provisions in this Agreement, in the event of any such change in the eurocurrency reserve
requirement or the interpretation of any law, regulation or any guideline or request from any
central bank or other Governmental Authority, Sellers will have the right to terminate all
Transactions then outstanding as of a date selected by Sellers (without the payment by Sellers of
any prepayment penalty or Breakage Costs), which date shall be prior to the applicable Repurchase
Date and which date shall thereafter for all purposes hereof, be deemed to be the Repurchase Date.
In addition, Buyer shall promptly notify Sellers if any events in clause (i) or (ii) of this
Section 24 occur.

25. FURTHER ASSURANCES

Sellers and Guarantor agree to do such further acts and things and to execute and deliver to
Buyer such additional assignments, acknowledgments, agreements, powers and instruments as are
reasonably required by Buyer to carry into effect the intent and purposes of this Agreement, to
perfect the interests of Buyer in the Purchased Assets or to better assure and confirm unto Buyer
its rights, powers and remedies hereunder.

26. ENTIRE AGREEMENT; PRODUCT OF NEGOTIATION

This Agreement supersedes and integrates all previous negotiations, contracts, agreements and
understandings between the parties relating to a sale and repurchase of Purchased Assets and
Additional Purchased Assets thereto, and it, together with the other Program Documents, and the
other documents delivered pursuant hereto or thereto, contains the entire final agreement of the
parties. No prior negotiation, agreement, understanding or prior contract shall have any validity.

27. TERMINATION

This Agreement shall remain in effect until the earlier of (i) the date which is 364 days
after the Effective Date or (ii) at Buyer’s option upon the occurrence of an Event of Default (such
date, the “Termination Date”). However, no such termination shall affect Sellers’ outstanding
obligations to Buyer at the time of such termination. Sellers’ obligations to indemnify Buyer
pursuant to this Agreement shall survive the termination hereof.

28. ASSIGNMENT

The Program Documents are not assignable by Sellers. Buyer may from time to time assign all or
a portion of its rights and obligations under this Agreement and the Program Documents; provided,
however, that Buyer shall maintain, for review by Sellers upon written request, a register of
assignees and a copy of an executed assignment and acceptance by Buyer and assignee (“Assignment
and Acceptance”), specifying the percentage or portion of such rights and obligations assigned.
Upon such assignment, (a) such assignee shall be a party hereto and to each Program Document to the
extent of the percentage or portion set forth in the Assignment and Acceptance, and shall succeed
to the applicable rights and obligations of Buyer hereunder, and (b) Buyer shall, to the extent
that such rights and obligations have been so assigned by it to either (i) an Affiliate of Buyer
which assumes the obligations of Buyer or (ii) to another Person approved by Sellers (such approval
not to be unreasonably withheld) which assumes the obligations of Buyer, be released from its
obligations hereunder accruing thereafter and under the Program Documents. Unless otherwise stated
in the Assignment and Acceptance, Sellers shall continue to take directions solely from Buyer
unless otherwise notified by Buyer in writing. Buyer may distribute to any prospective assignee any
document or other information delivered to Buyer by Sellers. Notwithstanding any assignment by
Buyer pursuant to this Section 28, Buyer shall remain liable as to the Transactions.

29. AMENDMENTS, ETC.

No amendment or waiver of any provision of this Agreement nor any consent to any failure to
comply herewith or therewith shall in any event be effective unless the same shall be in writing
and signed by Guarantor, Sellers and Buyer, and then such amendment, waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given.

30. SEVERABILITY

If any provision of any Program Document is declared invalid by any court of competent
jurisdiction, such invalidity shall not affect any other provision of the Program Documents, and
each Program Document shall be enforced to the fullest extent permitted by law.

31. BINDING EFFECT; GOVERNING LAW

This Agreement shall be binding and inure to the benefit of the parties hereto and their
respective successors and assigns, except that Sellers may not assign or transfer any of their
rights or obligations under this Agreement or any other Program Document without the prior written
consent of Buyer. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAW OF
THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF (EXCEPT FOR
SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

32. CONSENT TO JURISDICTION

EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY. EACH SELLER HEREBY IRREVOCABLY AND
UNCONDITIONALLY CONSENTS, ON BEHALF OF ITSELF AND ITS PROPERTY, TO THE NON-EXCLUSIVE PERSONAL
JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK, OR IN THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK, ARISING OUT OF OR RELATING TO THE PROGRAM DOCUMENTS IN ANY ACTION OR
PROCEEDING. EACH SELLER HEREBY SUBMITS TO, AND WAIVES ANY OBJECTION SELLER MAY HAVE TO,
NON-EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK AND THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY DISPUTES ARISING
OUT OF OR RELATING TO THE PROGRAM DOCUMENTS. EACH SELLER HEREBY IRREVOCABLY CONSENTS TO THE
SERVICE OF A SUMMONS AND COMPLAINT AND OTHER PROCESS IN ANY ACTION, CLAIM OR PROCEEDING BROUGHT BY
BUYER IN CONNECTION WITH THIS AGREEMENT OR THE OTHER PROGRAM DOCUMENTS, ANY RIGHTS OR OBLIGATIONS
HEREUNDER OR THEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS, ON BEHALF OF ITSELF OR
ITS PROPERTY, IN THE MANNER SPECIFIED IN THIS SECTION 32 AND TO ITS ADDRESS SPECIFIED IN SECTION 35
OR SUCH OTHER ADDRESS AS IT SHALL HAVE PROVIDED IN WRITING TO BUYER. NOTHING IN THIS SECTION 32
SHALL AFFECT THE RIGHT OF THE BUYER TO (I) SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW, OR (II) BRING ANY ACTION OR PROCEEDING AGAINST ANY SELLER OR ITS PROPERTIES IN THE
COURTS OF ANY OTHER JURISDICTIONS.

33. SINGLE AGREEMENT

Sellers, Guarantor and Buyer acknowledge that, and have entered hereinto and will enter into
each Transaction hereunder in consideration of and in reliance upon the fact that, all Transactions
hereunder constitute a single business and contractual relationship and have been made in
consideration of each other. Accordingly, Sellers, Guarantor and Buyer each agree (i) to perform
all of its obligations in respect of each Transaction hereunder, and that a default in the
performance of any such obligations shall constitute a default by it in respect of all Transactions
hereunder, and (ii) that payments, deliveries and other transfers made by any of them in respect of
any Transaction shall be deemed to have been made in consideration of payments, deliveries and
other transfer in respect of any other Transaction hereunder, and the obligations to make any such
payments, deliveries and other transfers may be applied against each other and netted.

34. INTENT

Sellers and Buyer recognize that each Transaction is a “repurchase agreement” as that term is
defined in Section 101 of Title 11 of the United States Code, as amended (“USC”) (except insofar as
the Loans subject to such Transaction or the term of such Transaction would render such definition
inapplicable), a “forward contract” as that term is defined in Section 101 of Title 11 of the USC,
and a “securities contract” as that term is defined in Section 741 of Title 11 of the USC (except
insofar as the Loans subject to such Transaction or the term of such Transaction would render such
definition inapplicable).

It is understood that Buyer’s right to liquidate the Purchased Assets delivered to it in
connection with the Transactions hereunder or to exercise any other remedies pursuant to Section 19
hereof is a contractual right to liquidate such Transaction as described in Sections 555 and 559 of
Title 11 of the USC.

Sellers and Buyer acknowledge that it is their intent for purposes of U.S. federal, state and
local income and franchise taxes to treat each Transaction as Indebtedness of the related Seller
that is secured by the Purchased Assets and that the Purchased Assets are owned by the related
Seller in the absence of a Default by such Seller. Sellers and Buyer agree to such treatment and
agree to take no other action inconsistent with this treatment unless required by law.

35. NOTICES AND OTHER COMMUNICATIONS

Except as provided herein, all notices required or permitted by this Agreement shall be in
writing (including without limitation by Electronic Transmission, email or facsimile) and shall be
effective and deemed delivered only when received by the party to which it is sent; provided,
however, that a facsimile transmission shall be deemed to be received when transmitted so long as
the transmitting machine has provided an electronic confirmation (without error message) of such
transmission and notices being sent by first class mail, postage prepaid, shall be deemed to be
received five (5) Business Days following the mailing thereof. Any such notice shall be sent to a
party at the address or facsimile transmission number set forth below:

	 	 	 
	 
	 	 
	 
	 	 
	if to Sellers:

	 	

	 
	 	 
	
 
	 	[New Century Mortgage Corporation]
	 
	 	 
	
 
	 	[Home123 Corporation]
	 
	 	 
	
 
	 	[New Century Credit Corporation]
	 
	 	 
	
 
	 	[NC Capital Corporation]
	 
	 	 
	
 
	 	18400 Von Karman
	 
	 	 
	
 
	 	Irvine, California 92612
	 
	 	 
	
 
	 	Attention: Kevin Cloyd
	 
	 	 
	
 
	 	Telephone: (949) 862-7941
	 
	 	 
	
 
	 	Facsimile: (949) 440-7033
	 
	 	 
	 
	 	 
	 
	 	 
	
 
	 	with a copy to:
	 
	 	 
	
 
	 	(At the same address as above)
	 
	 	 
	
 
	 	Attention: Legal Department
	 
	 	 
	
 
	 	Telephone: (949) 225-7808
	 
	 	 
	
 
	 	Facsimile: (949) 440-7033
	 
	 	 
	 
	 	 
	 
	 	 
	if to Buyer or Agent:

	 
	 	 
	
 
	 	Bank of America, N.A.
	 
	 	 
	
 
	 	TX1-492-66-01
	 
	 	 
	
 
	 	901 Main Street, 66th Floor
	 
	 	 
	
 
	 	Dallas, Texas 75202-3714
	 
	 	 
	
 
	 	Attention: Garrett Dolt
	 
	 	 
	
 
	 	Telephone: (214) 209-2664
	 
	 	 
	
 
	 	Facsimile: (214) 209-0338
	 
	 	 
	 
	 	 
	 
	 	 
	
 
	 	with a copy to:
	 
	 	 
	
 
	 	Attention: Christopher Young
	 
	 	 
	
 
	 	Telephone: (704) 388-8403
	 
	 	 
	
 
	 	Facsimile: (704) 409-0593
	 
	 	 
	 
	 	 
	 
	 	 
	
 
	 	or, for Transaction Notices and related documents:
	 
	 	 
	
 
	 	Attention: Jennifer Kovich
	 
	 	 
	
 
	 	Telephone: (704) 386-3614
	 
	 	 
	
 
	 	Facsimile: (704) 388-9211

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

36. CONFIDENTIALITY

This Agreement and its terms, provisions, supplements and amendments, and transactions and
notices hereunder, are proprietary to Buyer and Agent and shall be held by Sellers and Guarantor
(and Sellers and Guarantor shall cause Servicer to hold it) in strict confidence and shall not be
disclosed to any third party without the consent of Buyer except for (i) disclosure to Sellers’ or
Guarantor’s direct and indirect parent companies, directors, attorneys, agents or accountants,
provided that such attorneys or accountants likewise agree to be bound by this covenant of
confidentiality or (ii) disclosure required by law, rule, regulation or order of a court or other
regulatory body or (iii) disclosure to any approved Hedge Counterparty to the extent necessary to
obtain any Hedge Instrument hereunder or (iv) any disclosures or filing required under Securities
and Exchange Commission or state securities’ laws; provided that no Seller or Guarantor shall file
the Side Letter with the Securities and Exchange Commission or state securities office, unless
otherwise agreed by Buyer in writing, and the Sellers and Guarantor agree to use best efforts not
to file the terms of the Side Letter with any such filing; provided, that in the case of (ii),
(iii) and (iv), Sellers shall take reasonable actions to provide Buyer with prior written notice.
Notwithstanding anything herein to the contrary, each party (and each employee, representative, or
other agent of each party) may disclose to any and all persons, without limitation of any kind, the
tax treatment and tax structure of the transaction and all materials of any kind (including
opinions or other tax analyses) that are provided to it relating to such tax treatment and tax
structure. For this purpose, tax treatment and tax structure shall not include (i) the identity of
any existing of future party (or any Affiliate of such Party) to this Agreement or (ii) any
specific pricing information or other commercial terms, including the amount of any fees, expenses,
rates or payments arising in connection with the transactions contemplated by this Agreement.

37. TRANSACTION BASE CERTIFICATE.

No later than 5:00 p.m. Central time on each Business Day and prior to each Transaction, the
Sellers shall deliver to the Buyer a Transaction Base Certificate substantially in the form of
Exhibit C, which shall set forth the unpaid principal balance of each Loan subject to this
Agreement as of the date thereof, but subject to the sublimits and delivery requirements set forth
in the definition of “Eligible Assets” and “Eligible Loan” in the Side Letter and the delivery
requirements set forth herein. Notwithstanding the foregoing, on any Business Day on which the
related Transaction Base Certificate would be identical to the Transaction Base Certificate most
recently delivered by the Sellers to the Buyer, the Sellers may, at their option and in lieu of
delivering a new Transaction Base Certificate, deliver written notification to the Buyer that no
changes have occurred since the delivery of the most recent Transaction Base Certificate.

38. JOINT AND SEVERAL LIABILITY

The liability of the Sellers hereunder is joint and several. The Sellers hereby: (a)
acknowledge and agree that the Buyer and the Custodian shall have no obligation to proceed against
one Seller before proceeding against the other Sellers, (b) waive any defense to their obligations
under this Agreement based upon or arising out of the disability or other defense or cessation of
liability of one Seller versus the other or of any other Person, and (c) waive any right of
subrogation or ability to proceed against any Person until the Obligations are paid in full and the
Program Documents are terminated in accordance with the terms thereof.

[Signature Page Follows]

1

IN WITNESS WHEREOF, Sellers, Guarantor and Buyer have caused their names to be signed
to this Master Repurchase Agreement by their respective officers thereunto duly authorized as of
the Effective Date.

NEW CENTURY MORTGAGE

CORPORATION, as Seller, jointly and severally

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: President

HOME123 CORPORATION,

as Seller, jointly and severally

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

NEW CENTURY CREDIT CORPORATION,

as Seller, jointly and severally

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: President

NC CAPITAL CORPORATION,

as Seller, jointly and severally

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

BANK OF AMERICA, N.A.,

as Buyer and Agent, as applicable

By: /s/ Garrett Dolt

Name: Garrett Dolt

Title: Principal

2

Acknowledged and Agreed:

NEW CENTURY FINANCIAL CORPORATION,

as Guarantor

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Executive Vice President

3

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