Document:

EX-4.1

 

Exhibit 4.1

     This Security is a Global Security within the meaning of the Indenture (as defined on the
Reverse of this Security) hereinafter referred to and is registered in the name of The Depository
Trust Company (the “Depository”) or a nominee of the Depository. This Security is exchangeable for
Securities registered in the name of a person other than the Depository or its nominee only in the
limited circumstances described in the Indenture and may not be transferred except as a whole by
the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository
or another nominee of the Depository. Unless this Security is presented by an authorized
representative of the Depository (55 Water Street, New York) to The Chubb Corporation or its agent
for registration of transfer, exchange or payment, and any Security issued is registered in the
name of Cede & Co. or such other name as requested by an authorized representative of the
Depository and any payment hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

			
	 	 	 
	No. 1
	 	Principal Amount: $500,000,000
	Issue Date: May 11, 2007
	 	CUSIP: 171232AQ4
	 
	 	ISIN: US171232AQ41

THE CHUBB CORPORATION

6% Senior Notes due 2037

     THE CHUBB CORPORATION, a corporation organized and existing under the laws of New Jersey
(hereinafter called the “Company”, which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of five hundred million dollars ($500,000,000) as may be revised from
time to time on Schedule I hereto, and all accrued and unpaid interest thereof on May 11, 2037, or
if such day is not a Business Day, the following Business Day, and to pay interest thereon from and
including May 11, 2007, or from and including the most recent Interest Payment Date on which
interest has been paid or duly provided for, semi-annually in arrears on November 11 and May 11 of
each year, commencing on November 11, 2007, at the rate of 6% per annum to and including May 11,
2037 or earlier redemption date of this Security (each such date, an “Interest Payment Date”).

     The amount of interest payable for any full semi-annual period will be computed on the basis
of a 360-day year consisting of twelve 30-day months. The amount of interest payable for any period
shorter than a full semi-annual period for which interest is computed will be computed on the basis
of a 30-day month and, for any period less than a month, on the basis of the actual number of days
elapsed per 30-day month. In the event that any Interest Payment Date or the maturity date is not
a Business Day, then payment of the interest or principal payable on such date will be made on the
next succeeding day that is a Business Day with the same force

 

 

and effect as if made on the date
the payment was originally payable and without any interest or other payment in respect of the
delay.

     The interest installment so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security
is registered on the first Business Day of the month in which the Interest Payment Date falls or on
any other day more than one and less than sixty Business Days prior to such Interest Payment Date
that the Company chooses (such day, an “Alternate Record Date”); provided that the Company shall
provide written notice of such Alternate Record Date to the Trustee not less than ten Business
Days prior to the Alternate Record Date.

     A “Business Day” shall mean any day other than (i) a Saturday or Sunday, (ii) a day on which
banking institutions in The City of New York are authorized or required by law or executive order
to remain closed or (iii) a day on which the Corporate Trust Office of the Trustee is closed for
business.

     Payment of the principal of (and premium, if any) and interest on this Security will be made
at the office or agency of the Company maintained for that purpose in the United States, in such
coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts; provided, however, that at the option of the Company payment
of interest may be made (i) by check mailed to the address of the Person entitled thereto as such
address shall appear in the securities register or (ii) by wire transfer in immediately available
funds at such place and to such bank account as may be designated by the Person entitled thereto as
specified in the securities register in writing not less than ten days before the relevant Interest
Payment Date.

     The Company and, by acceptance of this Security or a beneficial interest in this Security,
each Holder hereof and any person acquiring a beneficial interest herein, agree to treat this
Security as indebtedness for United States federal income tax purposes.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

2

 

     In WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

	 	 	 	 	 	 	 
	 	 	THE CHUBB CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Michael O’Reilly	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:  Michael O’Reilly	 	 
	 

	 	 	 	Title:    Vice
Chairman and CFO	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Douglas C.
Nordstrom	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:  Douglas C.
Nordstrom	 	 
	 

	 	 	 	Title:    Vice
President and Treasurer	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

	 	 	 	 	 	 	 
	 	 	This is one of the Securities of the series
designated therein referred to in the
within-mentioned Indenture.	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Benita A.
Vaughn	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:  Benita A.
Vaughn	 	 
	 

	 	 	 	Title:    Authorized Signatory
	 	 
	 

	 	 	 	Dated:  May 11,
2007	 	 

3

 

REVERSE OF SENIOR NOTES

          This Security is one of a duly authorized issue of securities of the Company, issued and to be
issued in one or more series under the indenture, dated as of October 25, 1989 between the Company
and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Trust Company, N.A., as
successor to Bank One Trust Company, N.A. (formerly the First National Bank of Chicago)), as
trustee (the “Trustee”), as amended and supplemented through the date hereof, the (“Indenture”), to
which Indenture and all other indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties and immunities thereunder of the
Trustee, the Company and the Holders of the Securities, and of the terms upon which the Securities
are, and are to be, authenticated and delivered. By the terms of the Indenture, the Securities are
issuable in series that may vary as to amount, date of maturity, rate of interest, rank and in any
other respect provided in the Indenture.

          All terms used in this Security that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

          The Securities will be redeemable in whole at any time or in part from time to time, at
the Company’s option, at a redemption price equal to the greater of:

	 	•	 	100% of the principal amount of the Security to be redeemed; and
	 
	 	•	 	the sum of the present values of the remaining scheduled payments of
principal and interest on the Security to be redeemed (exclusive of
accrued and unpaid interest to the redemption date) discounted to the
redemption date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at a discount rate equal to the
Treasury Rate plus 0.20%,
in each case plus accrued and unpaid interest to the redemption date.

          For the purposes of the preceding paragraph:

	 	•	 	“Treasury Rate” means the semi-annual equivalent yield to
maturity of the Treasury Security that corresponds to the
Treasury Price (calculated in accordance with standard market
practice and computed as of the second trading day preceding the
redemption date);
	 
	 	•	 	“Treasury Security” means the United States Treasury security
that the Treasury Dealer determines would be appropriate to use,
at the time of determination and in accordance with standard
market practice, in pricing the Security being redeemed in a
tender offer based on a spread to United States Treasury yields;
	 
	 	•	 	“Treasury Price” means the bid-side price for the Treasury
Security as of the third trading day preceding the redemption
date, as set forth in the daily statistical release (or any
successor release) published by the Federal Reserve Bank of New
York on that trading day and designated “Composite 3:30 p.m.
Quotations for U.S. Government Securities,” except that: (i) if
that release (or any successor release) is not published or does
not contain that price information on that trading day; or (ii)
if 

4

 

	 	 	 	the Treasury Dealer determines that the price information is
not reasonably reflective of the actual bid-side price of the
Treasury Security prevailing at 3:30 p.m., New York City time, on
that trading day, then Treasury Price will instead mean the
bid-side price for the Treasury Security at or around 3:30 p.m.,
New York City time, on that trading day (expressed on a next
trading day settlement basis) as determined by the Treasury
Dealer through such alternative means as are commercially
reasonable under the circumstances; and 

	 	•	 	“Treasury Dealer” means Citigroup Global Markets Inc. (or its
successor) or, if Citigroup Global Markets Inc. (or its
successor) refuses to act as Treasury Dealer for this purpose or
ceases to be a primary U.S. Government securities dealer, another
nationally recognized investment banking firm that is a primary
U.S. Government securities dealer specified by us for these
purposes.

          Notice of any redemption will be mailed at least 30 days but not more than 60 days before
the redemption date to each Holder of the Securities to be redeemed at its registered address.
Unless the Company defaults in payment of the redemption price, on and after the redemption date,
interest will cease to accrue on the Securities or portions thereof called for redemption.

          The Company will not be required (i) to issue, register the transfer of or exchange any
Securities during a period beginning at the opening of business 15 days before the day of the
mailing of a notice of redemption of the Securities selected for redemption and ending at the close
of business on the day of such mailing, or (ii) to register the transfer of or exchange any
Security so selected for redemption in whole or in part, except the unredeemed portion of such
Securities being redeemed in part.

          No sinking fund is provided for the Securities. The Indenture contains provisions for
satisfaction, discharge and defeasance of the entire indebtedness of this Security upon compliance
by the Company with certain conditions set forth in the Indenture, which conditions apply to this
Security.

          In case an Event of Default, as defined in the Indenture, with respect to the Securities,
shall have occurred and be continuing, the principal hereof may be declared, and upon such
declaration shall become, due and payable, in the manner, with the effect and subject to the
conditions provided in the Indenture.

          The Indenture contains provisions permitting the Company and the Trustee, with the consent of
the Holders of not less than a majority in aggregate principal amount of the Securities at the time
Outstanding (as defined in the Indenture) of all series to be affected (voting as one class),
evidenced as in the Indenture provided, to execute supplemental indentures adding any provisions to
or changing in any manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the Holders of the Securities of
each such series; provided, however, that no such supplemental indenture shall (i) extend the final
maturity of any Security, or reduce the principal amount thereof or any premium thereon, or reduce
the rate or extend the time of payment of any interest thereon, or reduce any amount payable on
redemption thereof, or reduce the amount of the principal of an
Original Issue

5

 

Discount Security that would be due and payable upon an acceleration of the
maturity thereof or provable in bankruptcy, or change the currency of payments of principal,
premium, if any, or interest, or extend the time or reduce the amount of any payment to any sinking
fund or analogous obligation relating to any Security, or impair or affect the rights of any Holder
to institute suit for the payment thereof, without the consent of the Holder of each Security so
affected, or (ii) reduce the aforesaid percentage of Securities, the Holders of which are required
to consent to any such supplemental indenture, without the consent of the Holder of each Security
affected or (iii) reduce the percentage of Securities of this series outstanding necessary to
consent to waive any past default under the Indenture to less than a majority, without the consent
of the Holder of each Security so affected, or (iv) modify the provisions of the sections of the
Indenture dealing with supplementary indentures or waivers of covenants, except to increase any
such percentage or to provide that certain other provisions of the Indenture cannot be modified or
waived without the consent of the Holder of each Security affected thereby, provided, however, that
this clause shall not be deemed to require the consent of any Holder with respect to changes in the
references to “the Trustee” and concomitant changes in such sections of the Indenture or the
deletion of this proviso, in accordance with the requirements of the Indenture. It is also
provided in the Indenture that, with respect to certain defaults or Events of Default regarding the
Securities of any series, prior to any declaration accelerating the maturity of such Securities,
the Holders of a majority in aggregate principal amount Outstanding of the Securities of such
series (or, in the case of certain defaults or Events of Default, all or certain series of the
Securities) may on behalf of the Holders of all the Securities of such series (or all or certain
series of the Securities, as the case may be) waive any such past default or Event of Default and
its consequences. The preceding sentence shall not, however, apply to a default in the payment of
the principal of or premium, if any, or interest on any of the Securities. Any such consent or
waiver by the Holder of this Security (unless revoked as provided in
the Indenture) shall be
conclusive and binding upon such Holder and upon all future Holders and owners of this Security and
any Security which may be issued in exchange or substitution herefor, irrespective of whether or
not any notation thereof is made upon this Security or such other Securities.

          No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of (and premium, if any) and interest on this Security at the times, place and rate,
and in the coin or currency, herein prescribed.

          Upon due presentment for registration of transfer of this Security at the office or
agency of the Company in the Borough of Manhattan, The City of New York, a new Security or
Securities of authorized denominations for an equal aggregate principal amount will be issued to
the transferee in exchange therefor, subject to the limitations provided in the Indenture, without
charge except for any tax or other governmental charge imposed in connection therewith.

          The Company, the Trustee and any authorized agent of the Company or the Trustee may deem
and treat the registered Holder hereof as the absolute owner of this Security (whether or not this
Security shall be overdue and notwithstanding any notation of ownership or other writing hereon),
for the purpose of receiving payment of, or on account of, the principal hereof and premium, if
any, and subject to the provisions on the face hereof, interest hereon, and for all other purposes,
and neither the Company nor the Trustee nor any authorized agent of the Company or the Trustee
shall be affected by any notice to the contrary.

6

 

          No recourse under or upon any obligation, covenant or agreement of the Company in the
Indenture or any indenture supplemental thereto or in any Security, or because of the creation of
any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer
or director, as such, of the Company or of any successor corporation, either directly or through
the Company or any successor corporation, under any rule of law, statute or constitutional
provision or by the enforcement of any assessment or by any legal or equitable proceeding or
otherwise, all such liability being expressly waived and released by the acceptance hereof and as
part of the consideration for the issue hereof.

          The Securities are issuable only in registered form without coupons in minimum
denominations of $1,000 and any integral multiples of $1,000 in excess thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Securities are exchangeable for a
like aggregate principal amount of Securities of a different authorized denomination, as requested
by the Holder surrendering the same.

          THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK.

          This is one of the Securities referred to in the within mentioned Indenture.

7

 

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Security to:

 

 

 

(Insert assignee’s social security or tax identification number)

 

 

(Insert address and zip code of assignee)

agent to transfer this Security on the books of the Securities Registrar. The agent may substitute
another to act for him or her.

	 	 	 
	Dated:

	 	Signature:
	 
	 	 
	 

	 	Signature Guarantee:

(Sign exactly as your name appears on the other side of this Security)

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of
the Securities Registrar, which requirements include membership or participation in the Security
Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Securities Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

 

 

SCHEDULE I

SCHEDULE OF PRINCIPAL AMOUNT REDUCTIONS

Principal amount of Securities outstanding represented by this certificate as of May 11, 2007:
$500,000,000

Thereafter, the following decreases have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Notation Made by or	 
	 	 	Principal Amount	 	 	Principal Amount	 	 	on Behalf of the	 
	Date of Redemption	 	Redeemed	 	 	Remaining	 	 	Trustee	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

9

 

     This Security is a Global Security within the meaning of the Indenture (as defined on the
Reverse of this Security) hereinafter referred to and is registered in the name of The Depository
Trust Company (the “Depository”) or a nominee of the Depository. This Security is exchangeable for
Securities registered in the name of a person other than the Depository or its nominee only in the
limited circumstances described in the Indenture and may not be transferred except as a whole by
the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository
or another nominee of the Depository. Unless this Security is presented by an authorized
representative of the Depository (55 Water Street, New York) to The Chubb Corporation or its agent
for registration of transfer, exchange or payment, and any Security issued is registered in the
name of Cede & Co. or such other name as requested by an authorized representative of the
Depository and any payment hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

			
	 	 	 
	No. 2
	 	Principal Amount: $300,000,000
	Issue Date: May 11, 2007
	 	CUSIP: 171232AQ4
	 
	 	ISIN: US171232AQ41

THE CHUBB CORPORATION

6% Senior Notes due 2037

     THE CHUBB CORPORATION, a corporation organized and existing under the laws of New Jersey
(hereinafter called the “Company”, which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of three hundred million dollars ($300,000,000) as may be revised from
time to time on Schedule I hereto, and all accrued and unpaid interest thereof on May 11, 2037, or
if such day is not a Business Day, the following Business Day, and to pay interest thereon from and
including May 11, 2007, or from and including the most recent Interest Payment Date on which
interest has been paid or duly provided for, semi-annually in arrears on November 11 and May 11 of
each year, commencing on November 11, 2007, at the rate of 6% per annum to and including May 11,
2037 or earlier redemption date of this Security (each such date, an “Interest Payment Date”).

     The amount of interest payable for any full semi-annual period will be computed on the basis
of a 360-day year consisting of twelve 30-day months. The amount of interest payable for any period
shorter than a full semi-annual period for which interest is computed will be computed on the basis
of a 30-day month and, for any period less than a month, on the basis of the actual number of days
elapsed per 30-day month. In the event that any Interest Payment Date or the maturity date is not
a Business Day, then payment of the interest or principal payable on such date will be made on the
next succeeding day that is a Business Day with the same force

 

 

and effect as if made on the date
the payment was originally payable and without any interest or other payment in respect of the
delay.

     The interest installment so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security
is registered on the first Business Day of the month in which the Interest Payment Date falls or on
any other day more than one and less than sixty Business Days prior to such Interest Payment Date
that the Company chooses (such day, an “Alternate Record Date”); provided that the Company shall
provide written notice of such Alternate Record Date to the Trustee not less than ten Business
Days prior to the Alternate Record Date.

     A “Business Day” shall mean any day other than (i) a Saturday or Sunday, (ii) a day on which
banking institutions in The City of New York are authorized or required by law or executive order
to remain closed or (iii) a day on which the Corporate Trust Office of the Trustee is closed for
business.

     Payment of the principal of (and premium, if any) and interest on this Security will be made
at the office or agency of the Company maintained for that purpose in the United States, in such
coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts; provided, however, that at the option of the Company payment
of interest may be made (i) by check mailed to the address of the Person entitled thereto as such
address shall appear in the securities register or (ii) by wire transfer in immediately available
funds at such place and to such bank account as may be designated by the Person entitled thereto as
specified in the securities register in writing not less than ten days before the relevant Interest
Payment Date.

     The Company and, by acceptance of this Security or a beneficial interest in this Security,
each Holder hereof and any person acquiring a beneficial interest herein, agree to treat this
Security as indebtedness for United States federal income tax purposes.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

2

 

     In WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

	 	 	 	 	 	 	 
	 	 	THE CHUBB CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Michael O’Reilly	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:  Michael O’Reilly	 	 
	 

	 	 	 	Title:    Vice
Chairman and CFO	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Douglas C.
Nordstrom	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:  Douglas C.
Nordstrom	 	 
	 

	 	 	 	Title:    Vice
President and Treasurer	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

	 	 	 	 	 	 	 
	 	 	This is one of the Securities of the series
designated therein referred to in the
within-mentioned Indenture.	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Benita A.
Vaughn	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:  Benita A.
Vaughn	 	 
	 

	 	 	 	Title:    Authorized Signatory
	 	 
	 

	 	 	 	Dated:  May 11,
2007	 	 

3

 

REVERSE OF SENIOR NOTES

          This Security is one of a duly authorized issue of securities of the Company, issued and to be
issued in one or more series under the indenture, dated as of October 25, 1989 between the Company
and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Trust Company, N.A., as
successor to Bank One Trust Company, N.A. (formerly the First National Bank of Chicago)), as
trustee (the “Trustee”), as amended and supplemented through the date hereof, the (“Indenture”), to
which Indenture and all other indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties and immunities thereunder of the
Trustee, the Company and the Holders of the Securities, and of the terms upon which the Securities
are, and are to be, authenticated and delivered. By the terms of the Indenture, the Securities are
issuable in series that may vary as to amount, date of maturity, rate of interest, rank and in any
other respect provided in the Indenture.

          All terms used in this Security that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

          The Securities will be redeemable in whole at any time or in part from time to time, at
the Company’s option, at a redemption price equal to the greater of:

	 	•	 	100% of the principal amount of the Security to be redeemed; and
	 
	 	•	 	the sum of the present values of the remaining scheduled payments of
principal and interest on the Security to be redeemed (exclusive of
accrued and unpaid interest to the redemption date) discounted to the
redemption date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at a discount rate equal to the
Treasury Rate plus 0.20%,
in each case plus accrued and unpaid interest to the redemption date.

                    For the purposes of the preceding paragraph:

	 	•	 	“Treasury Rate” means the semi-annual equivalent yield to
maturity of the Treasury Security that corresponds to the
Treasury Price (calculated in accordance with standard market
practice and computed as of the second trading day preceding the
redemption date);
	 
	 	•	 	“Treasury Security” means the United States Treasury security
that the Treasury Dealer determines would be appropriate to use,
at the time of determination and in accordance with standard
market practice, in pricing the Security being redeemed in a
tender offer based on a spread to United States Treasury yields;
	 
	 	•	 	“Treasury Price” means the bid-side price for the Treasury
Security as of the third trading day preceding the redemption
date, as set forth in the daily statistical release (or any
successor release) published by the Federal Reserve Bank of New
York on that trading day and designated “Composite 3:30 p.m.
Quotations for U.S. Government Securities,” except that: (i) if
that release (or any successor release) is not published or does
not contain that price information on that trading day; or (ii)
if the Treasury 

4

 

	 	 	 	Dealer determines that the price information is
not reasonably reflective of the actual bid-side price of the
Treasury Security prevailing at 3:30 p.m., New York City time, on
that trading day, then Treasury Price will instead mean the
bid-side price for the Treasury Security at or around 3:30 p.m.,
New York City time, on that trading day (expressed on a next
trading day settlement basis) as determined by the Treasury
Dealer through such alternative means as are commercially
reasonable under the circumstances; and
 

	 	•	 	“Treasury Dealer” means Citigroup Global Markets Inc. (or its
successor) or, if Citigroup Global Markets Inc. (or its
successor) refuses to act as Treasury Dealer for this purpose or
ceases to be a primary U.S. Government securities dealer, another
nationally recognized investment banking firm that is a primary
U.S. Government securities dealer specified by us for these
purposes.

          Notice of any redemption will be mailed at least 30 days but not more than 60 days before
the redemption date to each Holder of the Securities to be redeemed at its registered address.
Unless the Company defaults in payment of the redemption price, on and after the redemption date,
interest will cease to accrue on the Securities or portions thereof called for redemption.

          The Company will not be required (i) to issue, register the transfer of or exchange any
Securities during a period beginning at the opening of business 15 days before the day of the
mailing of a notice of redemption of the Securities selected for redemption and ending at the close
of business on the day of such mailing, or (ii) to register the transfer of or exchange any
Security so selected for redemption in whole or in part, except the unredeemed portion of such
Securities being redeemed in part.

          No sinking fund is provided for the Securities. The Indenture contains provisions for
satisfaction, discharge and defeasance of the entire indebtedness of this Security upon compliance
by the Company with certain conditions set forth in the Indenture, which conditions apply to this
Security.

          In case an Event of Default, as defined in the Indenture, with respect to the Securities,
shall have occurred and be continuing, the principal hereof may be declared, and upon such
declaration shall become, due and payable, in the manner, with the effect and subject to the
conditions provided in the Indenture.

          The Indenture contains provisions permitting the Company and the Trustee, with the consent of
the Holders of not less than a majority in aggregate principal amount of the Securities at the time
Outstanding (as defined in the Indenture) of all series to be affected (voting as one class),
evidenced as in the Indenture provided, to execute supplemental indentures adding any provisions to
or changing in any manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the Holders of the Securities of
each such series; provided, however, that no such supplemental indenture shall (i) extend the final
maturity of any Security, or reduce the principal amount thereof or any premium thereon, or reduce
the rate or extend the time of payment of any interest thereon, or reduce any amount payable on
redemption thereof, or reduce the amount of the principal of an Original Issue

5

 

Discount Security that would be due and payable upon an acceleration of the
maturity thereof or provable in bankruptcy, or change the currency of payments of principal,
premium, if any, or interest, or extend the time or reduce the amount of any payment to any sinking
fund or analogous obligation relating to any Security, or impair or affect the rights of any Holder
to institute suit for the payment thereof, without the consent of the Holder of each Security so
affected, or (ii) reduce the aforesaid percentage of Securities, the Holders of which are required
to consent to any such supplemental indenture, without the consent of the Holder of each Security
affected or (iii) reduce the percentage of Securities of this series outstanding necessary to
consent to waive any past default under the Indenture to less than a majority, without the consent
of the Holder of each Security so affected, or (iv) modify the provisions of the sections of the
Indenture dealing with supplementary indentures or waivers of covenants, except to increase any
such percentage or to provide that certain other provisions of the Indenture cannot be modified or
waived without the consent of the Holder of each Security affected thereby, provided, however, that
this clause shall not be deemed to require the consent of any Holder with respect to changes in the
references to “the Trustee” and concomitant changes in such sections of the Indenture or the
deletion of this proviso, in accordance with the requirements of the Indenture. It is also
provided in the Indenture that, with respect to certain defaults or Events of Default regarding the
Securities of any series, prior to any declaration accelerating the maturity of such Securities,
the Holders of a majority in aggregate principal amount Outstanding of the Securities of such
series (or, in the case of certain defaults or Events of Default, all or certain series of the
Securities) may on behalf of the Holders of all the Securities of such series (or all or certain
series of the Securities, as the case may be) waive any such past default or Event of Default and
its consequences. The preceding sentence shall not, however, apply to a default in the payment of
the principal of or premium, if any, or interest on any of the Securities. Any such consent or
waiver by the Holder of this Security (unless revoked as provided in the Indenture) shall be
conclusive and binding upon such Holder and upon all future Holders and owners of this Security and
any Security which may be issued in exchange or substitution herefor, irrespective of whether or
not any notation thereof is made upon this Security or such other Securities.

          No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of (and premium, if any) and interest on this Security at the times, place and rate,
and in the coin or currency, herein prescribed.

          Upon due presentment for registration of transfer of this Security at the office or
agency of the Company in the Borough of Manhattan, The City of New York, a new Security or
Securities of authorized denominations for an equal aggregate principal amount will be issued to
the transferee in exchange therefor, subject to the limitations provided in the Indenture, without
charge except for any tax or other governmental charge imposed in connection therewith.

          The Company, the Trustee and any authorized agent of the Company or the Trustee may deem
and treat the registered Holder hereof as the absolute owner of this Security (whether or not this
Security shall be overdue and notwithstanding any notation of ownership or other writing hereon),
for the purpose of receiving payment of, or on account of, the principal hereof and premium, if
any, and subject to the provisions on the face hereof, interest hereon, and for all other purposes,
and neither the Company nor the Trustee nor any authorized agent of the Company or the Trustee
shall be affected by any notice to the contrary.

6

 

          No recourse under or upon any obligation, covenant or agreement of the Company in the
Indenture or any indenture supplemental thereto or in any Security, or because of the creation of
any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer
or director, as such, of the Company or of any successor corporation, either directly or through
the Company or any successor corporation, under any rule of law, statute or constitutional
provision or by the enforcement of any assessment or by any legal or equitable proceeding or
otherwise, all such liability being expressly waived and released by the acceptance hereof and as
part of the consideration for the issue hereof.

          The Securities are issuable only in registered form without coupons in minimum
denominations of $1,000 and any integral multiples of $1,000 in excess thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Securities are exchangeable for a
like aggregate principal amount of Securities of a different authorized denomination, as requested
by the Holder surrendering the same.

          THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK.

          This is one of the Securities referred to in the within mentioned Indenture.

7

 

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Security to:

 

 

 

(Insert assignee’s social security or tax identification number)

 

 

(Insert address and zip code of assignee)

agent to transfer this Security on the books of the Securities Registrar. The agent may substitute
another to act for him or her.

	 	 	 
	Dated:

	 	Signature:
	 

	 	Signature Guarantee:

(Sign exactly as your name appears on the other side of this Security)

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of
the Securities Registrar, which requirements include membership or participation in the Security
Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Securities Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

 

SCHEDULE I

SCHEDULE OF PRINCIPAL AMOUNT REDUCTIONS

Principal amount of Securities outstanding represented by this certificate as of May 11, 2007:
$300,000,000

Thereafter, the following decreases have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Notation Made by or	 
	 	 	Principal Amount	 	 	Principal Amount	 	 	on Behalf of the	 
	Date of Redemption	 	Redeemed	 	 	Remaining	 	 	Trustee	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

9<PAGE>

                                                                     Exhibit 4.1

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                    Depositor

                            HOME LOAN SERVICES, INC.,
                                    Servicer

                                       and

                       LASALLE BANK NATIONAL ASSOCIATION,
                                     Trustee

                                   ----------

                         POOLING AND SERVICING AGREEMENT
                            Dated as of April 1, 2007

                                   ----------

                MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST,
             MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2007-2

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
ARTICLE I DEFINITIONS....................................................     13

ARTICLE II CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES..     66
   SECTION 2.01.    Conveyance of Mortgage Loans.........................     66
   SECTION 2.02.    Acceptance by the Trustee of the Mortgage Loans......     68
   SECTION 2.03.    Representations, Warranties and Covenants of the
                    Depositor............................................     70
   SECTION 2.04.    Representations and Warranties of the Servicer.......     73
   SECTION 2.05.    Substitutions and Repurchases of Mortgage Loans that
                    are not "Qualified Mortgages"........................     74
   SECTION 2.06.    Authentication and Delivery of Certificates..........     75
   SECTION 2.07.    REMIC Elections......................................     75
   SECTION 2.08.    [RESERVED]...........................................     80
   SECTION 2.09.    Covenants of the Servicer............................     80
   SECTION 2.10.    [RESERVED]...........................................     80
   SECTION 2.11.    Permitted Activities of the Issuing Entity...........     81
   SECTION 2.12.    Qualifying Special Purpose Entity....................     81
   SECTION 2.13.    Depositor Notification of NIM Notes..................     81

ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS...............     81
   SECTION 3.01.    Servicer to Service Mortgage Loans...................     81
   SECTION 3.02.    Servicing and Subservicing; Enforcement of the
                    Obligations of Servicer..............................     83
   SECTION 3.03.    Rights of the Depositor and the Trustee in Respect of
                    the Servicer.........................................     84
   SECTION 3.04.    Trustee to Act as Servicer...........................     84
   SECTION 3.05.    Collection of Mortgage Loan Payments; Collection
                    Account; Certificate Account.........................     85
   SECTION 3.06.    Collection of Taxes, Assessments and Similar Items;
                    Escrow Accounts......................................     88
   SECTION 3.07.    Access to Certain Documentation and Information
                    Regarding the Mortgage Loans.........................     89
   SECTION 3.08.    Permitted Withdrawals from the Collection Account and
                    Certificate Account..................................     89
   SECTION 3.09.    [RESERVED]...........................................     91
   SECTION 3.10.    Maintenance of Hazard Insurance......................     91
   SECTION 3.11.    Enforcement of Due-On-Sale Clauses; Assumption
                    Agreements...........................................     92
</TABLE>

                                       -i-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
   SECTION 3.12.    Realization Upon Defaulted Mortgage Loans;
                    Determination of Excess Proceeds; Special Loss
                    Mitigation...........................................     93
   SECTION 3.13.    Trustee to Cooperate; Release of Mortgage Files......     97
   SECTION 3.14.    Documents, Records and Funds in Possession of
                    Servicer to be Held for the Trustee..................     98
   SECTION 3.15.    Servicing Compensation...............................     99
   SECTION 3.16.    Access to Certain Documentation......................     99
   SECTION 3.17.    Annual Statement as to Compliance....................     99
   SECTION 3.18.    Annual Independent Public Accountants' Servicing
                    Statement; Financial Statements......................    100
   SECTION 3.19.    Subordination of Liens...............................    102
   SECTION 3.20.    Periodic Filings.....................................    103
   SECTION 3.21.    Indemnification by Trustee...........................    106
   SECTION 3.22.    Indemnification by Servicer..........................    107
   SECTION 3.23.    Prepayment Charge Reporting Requirements.............    107
   SECTION 3.24.    Information to the Trustee...........................    108
   SECTION 3.25.    Indemnification......................................    108
   SECTION 3.26.    Solicitation.........................................    108
   SECTION 3.27.    High Cost Mortgage Loans.............................    109
   SECTION 3.28.    Rights of the NIMs Insurer...........................    109

ARTICLE IV DISTRIBUTIONS.................................................    109
   SECTION 4.01.    Advances.............................................    109
   SECTION 4.02.    Reduction of Servicing Compensation in Connection
                    with Prepayment Interest Shortfalls..................    110
   SECTION 4.03.    Distributions on the REMIC Interests.................    111
   SECTION 4.04.    Distributions........................................    111
   SECTION 4.05.    Monthly Statements to Certificateholders.............    121

ARTICLE V THE CERTIFICATES...............................................    125
   SECTION 5.01.    The Certificates.....................................    125
   SECTION 5.02.    Certificate Register; Registration of Transfer and
                    Exchange of Certificates.............................    127
   SECTION 5.03.    Mutilated, Destroyed, Lost or Stolen Certificates....    131
   SECTION 5.04.    Persons Deemed Owners................................    131
   SECTION 5.05.    Access to List of Certificateholders' Names and
                    Addresses............................................    131
</TABLE>

                                      -ii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
   SECTION 5.06.    Book-Entry Certificates..............................    132
   SECTION 5.07.    Notices to Depository................................    133
   SECTION 5.08.    Definitive Certificates..............................    133
   SECTION 5.09.    Maintenance of Office or Agency......................    133
   SECTION 5.10.    Authenticating Agents................................    133

ARTICLE VI THE DEPOSITOR AND THE SERVICER................................    134
   SECTION 6.01.    Respective Liabilities of the Depositor and the
                    Servicer.............................................    134
   SECTION 6.02.    Merger or Consolidation of the Depositor or the
                    Servicer.............................................    134
   SECTION 6.03.    Limitation on Liability of the Depositor, the
                    Servicer and Others..................................    135
   SECTION 6.04.    Limitation on Resignation of Servicer................    136
   SECTION 6.05.    Errors and Omissions Insurance; Fidelity Bonds.......    136

ARTICLE VII DEFAULT; TERMINATION OF SERVICER.............................    137
   SECTION 7.01.    Events of Default....................................    137
   SECTION 7.02.    Trustee to Act; Appointment of Successor.............    138
   SECTION 7.03.    Notification to Certificateholders...................    139

ARTICLE VIII CONCERNING THE TRUSTEE......................................    140
   SECTION 8.01.    Duties of the Trustee................................    140
   SECTION 8.02.    Certain Matters Affecting the Trustee................    141
   SECTION 8.03.    Trustee Not Liable for Certificates or Mortgage
                    Loans................................................    142
   SECTION 8.04.    Trustee May Own Certificates.........................    143
   SECTION 8.05.    Trustee's Fees and Expenses..........................    143
   SECTION 8.06.    Indemnification and Expenses of Trustee..............    143
   SECTION 8.07.    Eligibility Requirements for Trustee.................    144
   SECTION 8.08.    Resignation and Removal of Trustee...................    145
   SECTION 8.09.    Successor Trustee....................................    145
   SECTION 8.10.    Merger or Consolidation of Trustee...................    146
   SECTION 8.11.    Appointment of Co-Trustee or Separate Trustee........    146
   SECTION 8.12.    Tax Matters..........................................    147

ARTICLE IX TERMINATION...................................................    149
   SECTION 9.01.    Termination upon Liquidation or Repurchase of all
                    Mortgage Loans.......................................    149
   SECTION 9.02.    Final Distribution on the Certificates...............    151
   SECTION 9.03.    Additional Termination Requirements..................    152
</TABLE>

                                      -iii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
ARTICLE X MISCELLANEOUS PROVISIONS.......................................    153
   SECTION 10.01.   Amendment............................................    153
   SECTION 10.02.   Counterparts.........................................    155
   SECTION 10.03.   Governing Law........................................    155
   SECTION 10.04.   Intention of Parties.................................    155
   SECTION 10.05.   Notices..............................................    156
   SECTION 10.06.   Severability of Provisions...........................    156
   SECTION 10.07.   Assignment; Sales; Advance Facilities................    157
   SECTION 10.08.   Limitation on Rights of Certificateholders...........    158
   SECTION 10.09.   Inspection and Audit Rights..........................    159
   SECTION 10.10.   Certificates Nonassessable and Fully Paid............    159
   SECTION 10.11.   Compliance with Regulation AB........................    159
   SECTION 10.12.   Third Party Rights...................................    159
   SECTION 10.13.   Additional Rights of the NIMs Insurer................    159
</TABLE>

                                      -iv-
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>           <C>                                                           <C>
EXHIBIT A     FORMS OF CERTIFICATES
EXHIBIT B     MORTGAGE LOAN SCHEDULE
EXHIBIT C     [RESERVED]
EXHIBIT D     FORM OF TRUSTEE CERTIFICATION
EXHIBIT E-1   FORM OF TRANSFEREE'S LETTER AND AFFIDAVIT
EXHIBIT E-2   FORM OF TRANSFEROR'S AFFIDAVIT
EXHIBIT F     FORM OF TRANSFEROR CERTIFICATE
EXHIBIT G     FORM OF INVESTMENT LETTER (ACCREDITED INVESTOR)
EXHIBIT H     FORM OF RULE 144A INVESTMENT LETTER (QUALIFIED INSTITUTIONAL
              BUYER)
EXHIBIT I     FORM OF REQUEST FOR RELEASE
EXHIBIT J     [RESERVED]
EXHIBIT K     FORM OF BACK-UP CERTIFICATION OF TRUSTEE
EXHIBIT L     FORM OF OFFICER'S CERTIFICATE OF SERVICER
EXHIBIT M-1   FORM OF CLASS A-1 CAP CORRIDOR CONTRACT
EXHIBIT M-2   FORM OF CLASS A-2 CAP CORRIDOR CONTRACT
EXHIBIT M-3   FORM OF SUBORDINATE CERTIFICATE CAP CORRIDOR CONTRACT
EXHIBIT M-4   FORM OF CREDIT SUPPORT ANNEX RELATED TO THE CAP CORRIDOR
              CONTRACTS
EXHIBIT N     [RESERVED]
EXHIBIT O     FORM OF TRANSFEROR REPRESENTATION LETTER FOR TRANSFER TO
              REGULATION S BOOK-ENTRY CERTIFICATE FROM A HOLDER OF A RULE
              144A BOOK-ENTRY CERTIFICATE OR DEFINITIVE CERTIFICATE
EXHIBIT P     FORM OF TRANSFEROR REPRESENTATION LETTER FOR TRANSFER PURSUANT
              TO RULE 144A FROM A HOLDER OF A REGULATION S BOOK-ENTRY
              CERTIFICATE OR DEFINITIVE CERTIFICATE
EXHIBIT Q     FORM OF SWAP AGREEMENT
EXHIBIT R     FORM OF ASSESSMENT OF COMPLIANCE
EXHIBIT S     SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE
EXHIBIT T     FORM OF SARBANES-OXLEY CERTIFICATIONS
EXHIBIT U     FORM OF ITEM 1123 CERTIFICATION OF SERVICER
EXHIBIT V     FORM OF DELINQUENCY REPORT
EXHIBIT W     [RESERVED]
</TABLE>

SCHEDULE X
SCHEDULE Y
SCHEDULE Z

                                       -v-

<PAGE>

     POOLING AND SERVICING AGREEMENT, dated as of April 1, 2007 (the
"Agreement"), among MERRILL LYNCH MORTGAGE INVESTORS, INC., a Delaware
corporation, as depositor (the "Depositor"), HOME LOAN SERVICES, INC., a Nevada
corporation, as servicer (the "Servicer"), and LASALLE BANK NATIONAL
ASSOCIATION, a national banking association, as trustee (the "Trustee").

     The Depositor is the owner of the Trust Fund that is hereby conveyed to the
Trustee in return for the Certificates. The Trust Fund for federal income tax
purposes will consist of (i) three real estate mortgage investment conduits,
(ii) the right to receive payments distributable to the Class P Certificates
pursuant to Section 4.04(b)(i) hereof, (iii) each Corridor Contract and the
Corridor Contract Account, (iv) the grantor trusts described in Section 2.07
hereof and (v) the Supplemental Interest Trust, which in turn will hold the Swap
Agreement. The SWAP REMIC will consist of all of the assets constituting the
Trust Fund (other than the assets described in clauses (ii), (iii), (iv) and (v)
above, other than the SWAP REMIC Regular Interests and other than the Lower Tier
REMIC Regular Interests) and will be evidenced by the SWAP REMIC Regular
Interests (which will be uncertificated and will represent the "regular
interests" in the SWAP REMIC) and the Class SWR Interest as the single "residual
interest" in the SWAP REMIC. The Lower Tier REMIC will consist of SWAP REMIC
Regular Interests and will be evidenced by the Lower Tier REMIC Regular
Interests (which will be uncertificated and will represent the "regular
interests" in the Lower Tier REMIC) and the Class LTR Interest as the single
"residual interest" in the Lower Tier REMIC. The Trustee will hold the Lower
Tier REMIC Regular Interests. The Upper Tier REMIC will consist of the Lower
Tier REMIC Regular Interests and will be evidenced by the REMIC Regular
Interests (which will represent the "regular interests" in the Upper Tier REMIC)
and the Residual Interest as the single "residual interest" in the Upper Tier
REMIC. The Class R Certificate will represent beneficial ownership of the Class
SWR Interest, the Class LTR Interest and the Residual Interest. The "latest
possible maturity date" for federal income tax purposes of all interests created
hereby will be the Latest Possible Maturity Date.

     All covenants and agreements made by the Sponsor in the Purchase Agreement
and by the Depositor and the Trustee herein with respect to the Mortgage Loans
and the other property constituting the Trust Fund are for the benefit of the
Holders from time to time of the Certificates and, to the extent provided
herein, the NIMs Insurer.

THE SWAP REMIC

     The following table sets forth the designations, initial principal balances
and interest rates for each interest in the SWAP REMIC:

<TABLE>
<CAPTION>
 Class    Initial Principal Balance   Interest Rate
-------   -------------------------   -------------
<S>       <C>                         <C>
1-SW1          $ 90,749,091.598            (1)
1-SW1A         $  6,468,085.153            (2)
1-SW1B         $  6,468,085.153            (3)
1-SW2A         $  6,752,445.782            (2)
1-SW2B         $  6,752,445.782            (3)
1-SW3A         $  7,224,893.701            (2)
1-SW3B         $  7,224,893.701            (3)
1-SW4A         $  8,404,455.021            (2)
1-SW4B         $  8,404,455.021            (3)
</TABLE>

<PAGE>

<TABLE>
<S>       <C>                         <C>
1-SW5A         $  9,272,369.874            (2)
1-SW5B         $  9,272,369.874            (3)
1-SW6A         $ 10,639,805.091            (2)
1-SW6B         $ 10,639,805.091            (3)
1-SW7A         $  9,900,355.987            (2)
1-SW7B         $  9,900,355.987            (3)
1-SW8A         $  9,151,430.216            (2)
1-SW8B         $  9,151,430.216            (3)
1-SW9A         $  8,560,451.317            (2)
1-SW9B         $  8,560,451.317            (3)
1-SW10A        $  7,967,089.049            (2)
1-SW10B        $  7,967,089.049            (3)
1-SW11A        $  7,487,302.942            (2)
1-SW11B        $  7,487,302.942            (3)
1-SW12A        $  7,035,752.377            (2)
1-SW12B        $  7,035,752.377            (3)
1-SW13A        $  6,688,251.417            (2)
1-SW13B        $  6,688,251.417            (3)
1-SW14A        $  6,261,230.976            (2)
1-SW14B        $  6,261,230.976            (3)
1-SW15A        $  5,990,878.327            (2)
1-SW15B        $  5,990,878.327            (3)
1-SW16A        $ 25,729,329.394            (2)
1-SW16B        $ 25,729,329.394            (3)
1-SW17A        $ 24,515,984.325            (2)
1-SW17B        $ 24,515,984.325            (3)
1-SW18A        $ 20,268,986.357            (2)
1-SW18B        $ 20,268,986.357            (3)
1-SW19A        $ 15,385,780.837            (2)
1-SW19B        $ 15,385,780.837            (3)
1-SW20A        $  8,871,470.170            (2)
1-SW20B        $  8,871,470.170            (3)
1-SW21A        $  6,961,785.108            (2)
1-SW21B        $  6,961,785.108            (3)
1-SW22A        $  5,713,765.577            (2)
1-SW22B        $  5,713,765.577            (3)
1-SW23A        $  5,220,947.960            (2)
1-SW23B        $  5,220,947.960            (3)
1-SW24A        $  4,875,940.342            (2)
1-SW24B        $  4,875,940.342            (3)
1-SW25A        $  4,446,130.140            (2)
1-SW25B        $  4,446,130.140            (3)
1-SW26A        $  4,040,179.661            (2)
1-SW26B        $  4,040,179.661            (3)
1-SW27A        $  3,708,989.026            (2)
1-SW27B        $  3,708,989.026            (3)
</TABLE>

                                       -2-

<PAGE>

<TABLE>
<S>       <C>                         <C>
1-SW28A        $  1,993,634.440            (2)
1-SW28B        $  1,993,634.440            (3)
1-SW29A        $     96,716.149            (2)
1-SW29B        $     96,716.149            (3)
1-SW30A        $  6,027,397.942            (2)
1-SW30B        $  6,027,397.942            (3)
1-SW31A        $  4,965,745.268            (2)
1-SW31B        $  4,965,745.268            (3)
1-SW32A        $  4,081,718.734            (2)
1-SW32B        $  4,081,718.734            (3)
1-SW33A        $  3,324,693.516            (2)
1-SW33B        $  3,324,693.516            (3)
1-SW34A        $  2,976,216.267            (2)
1-SW34B        $  2,976,216.267            (3)
1-SW35A        $  2,779,543.754            (2)
1-SW35B        $  2,779,543.754            (3)
1-SW36A        $  2,449,187.753            (2)
1-SW36B        $  2,449,187.753            (3)
1-SW37A        $  2,212,181.506            (2)
1-SW37B        $  2,212,181.506            (3)
1-SW38A        $  2,035,080.654            (2)
1-SW38B        $  2,035,080.654            (3)
1-SW39A        $  1,889,500.352            (2)
1-SW39B        $  1,889,500.352            (3)
1-SW40A        $  1,818,892.012            (2)
1-SW40B        $  1,818,892.012            (3)
1-SW41A        $  1,783,106.890            (2)
1-SW41B        $  1,783,106.890            (3)
1-SW42A        $  1,692,406.152            (2)
1-SW42B        $  1,692,406.152            (3)
1-SW43A        $  1,570,774.607            (2)
1-SW43B        $  1,570,774.607            (3)
1-SW44A        $  1,407,682.282            (2)
1-SW44B        $  1,407,682.282            (3)
1-SW45A        $  1,318,100.034            (2)
1-SW45B        $  1,318,100.034            (3)
1-SW46A        $  1,213,211.425            (2)
1-SW46B        $  1,213,211.425            (3)
1-SW47A        $  1,186,449.601            (2)
1-SW47B        $  1,186,449.601            (3)
1-SW48A        $  1,093,111.682            (2)
1-SW48B        $  1,093,111.682            (3)
1-SW49A        $  1,029,174.225            (2)
1-SW49B        $  1,029,174.225            (3)
1-SW50A        $    970,243.116            (2)
1-SW50B        $    970,243.116            (3)
</TABLE>

                                       -3-

<PAGE>

<TABLE>
<S>       <C>                         <C>
1-SW51A        $    907,621.882            (2)
1-SW51B        $    907,621.882            (3)
1-SW52A        $    850,742.401            (2)
1-SW52B        $    850,742.401            (3)
1-SW53A        $    810,866.041            (2)
1-SW53B        $    810,866.041            (3)
1-SW54A        $ 19,136,588.786            (2)
1-SW54B        $ 19,136,588.786            (3)
2-SW2          $158,458,193.512            (4)
2-SW1A         $ 11,294,009.347            (5)
2-SW1B         $ 11,294,009.347            (6)
2-SW2A         $ 11,790,535.218            (5)
2-SW2B         $ 11,790,535.218            (6)
2-SW3A         $ 12,615,482.799            (5)
2-SW3B         $ 12,615,482.799            (6)
2-SW4A         $ 14,675,130.479            (5)
2-SW4B         $ 14,675,130.479            (6)
2-SW5A         $ 16,190,608.126            (5)
2-SW5B         $ 16,190,608.126            (6)
2-SW6A         $ 18,578,304.909            (5)
2-SW6B         $ 18,578,304.909            (6)
2-SW7A         $ 17,287,143.013            (5)
2-SW7B         $ 17,287,143.013            (6)
2-SW8A         $ 15,979,433.784            (5)
2-SW8B         $ 15,979,433.784            (6)
2-SW9A         $ 14,947,517.683            (5)
2-SW9B         $ 14,947,517.683            (6)
2-SW10A        $ 13,911,439.951            (5)
2-SW10B        $ 13,911,439.951            (6)
2-SW11A        $ 13,073,679.058            (5)
2-SW11B        $ 13,073,679.058            (6)
2-SW12A        $ 12,285,220.623            (5)
2-SW12B        $ 12,285,220.623            (6)
2-SW13A        $ 11,678,444.583            (5)
2-SW13B        $ 11,678,444.583            (6)
2-SW14A        $ 10,932,818.524            (5)
2-SW14B        $ 10,932,818.524            (6)
2-SW15A        $ 10,460,752.173            (5)
2-SW15B        $ 10,460,752.173            (6)
2-SW16A        $ 44,926,323.606            (5)
2-SW16B        $ 44,926,323.606            (6)
2-SW17A        $ 42,807,685.675            (5)
2-SW17B        $ 42,807,685.675            (6)
2-SW18A        $ 35,391,946.143            (5)
2-SW18B        $ 35,391,946.143            (6)
2-SW19A        $ 26,865,316.163            (5)
</TABLE>

                                       -4-

<PAGE>

<TABLE>
<S>       <C>                         <C>
2-SW19B        $ 26,865,316.163            (6)
2-SW20A        $ 15,490,591.830            (5)
2-SW20B        $ 15,490,591.830            (6)
2-SW21A        $ 12,156,065.392            (5)
2-SW21B        $ 12,156,065.392            (6)
2-SW22A        $  9,976,881.923            (5)
2-SW22B        $  9,976,881.923            (6)
2-SW23A        $  9,116,366.540            (5)
2-SW23B        $  9,116,366.540            (6)
2-SW24A        $  8,513,944.158            (5)
2-SW24B        $  8,513,944.158            (6)
2-SW25A        $  7,763,446.860            (5)
2-SW25B        $  7,763,446.860            (6)
2-SW26A        $  7,054,611.339            (5)
2-SW26B        $  7,054,611.339            (6)
2-SW27A        $  6,476,314.974            (5)
2-SW27B        $  6,476,314.974            (6)
2-SW28A        $  3,481,111.560            (5)
2-SW28B        $  3,481,111.560            (6)
2-SW29A        $    168,877.351            (5)
2-SW29B        $    168,877.351            (6)
2-SW30A        $ 10,524,519.558            (5)
2-SW30B        $ 10,524,519.558            (6)
2-SW31A        $  8,670,753.732            (5)
2-SW31B        $  8,670,753.732            (6)
2-SW32A        $  7,127,143.266            (5)
2-SW32B        $  7,127,143.266            (6)
2-SW33A        $  5,805,291.484            (5)
2-SW33B        $  5,805,291.484            (6)
2-SW34A        $  5,196,810.733            (5)
2-SW34B        $  5,196,810.733            (6)
2-SW35A        $  4,853,398.246            (5)
2-SW35B        $  4,853,398.246            (6)
2-SW36A        $  4,276,559.247            (5)
2-SW36B        $  4,276,559.247            (6)
2-SW37A        $  3,862,719.494            (5)
2-SW37B        $  3,862,719.494            (6)
2-SW38A        $  3,553,481.346            (5)
2-SW38B        $  3,553,481.346            (6)
2-SW39A        $  3,299,281.648            (5)
2-SW39B        $  3,299,281.648            (6)
2-SW40A        $  3,175,991.488            (5)
2-SW40B        $  3,175,991.488            (6)
2-SW41A        $  3,113,506.610            (5)
2-SW41B        $  3,113,506.610            (6)
2-SW42A        $  2,955,132.848            (5)
</TABLE>

                                      -5-

<PAGE>

<TABLE>
<S>       <C>                         <C>
2-SW42B        $  2,955,132.848            (6)
2-SW43A        $  2,742,750.393            (5)
2-SW43B        $  2,742,750.393            (6)
2-SW44A        $  2,457,972.718            (5)
2-SW44B        $  2,457,972.718            (6)
2-SW45A        $  2,301,551.966            (5)
2-SW45B        $  2,301,551.966            (6)
2-SW46A        $  2,118,404.575            (5)
2-SW46B        $  2,118,404.575            (6)
2-SW47A        $  2,071,675.399            (5)
2-SW47B        $  2,071,675.399            (6)
2-SW48A        $  1,908,696.818            (5)
2-SW48B        $  1,908,696.818            (6)
2-SW49A        $  1,797,054.775            (5)
2-SW49B        $  1,797,054.775            (6)
2-SW50A        $  1,694,154.384            (5)
2-SW50B        $  1,694,154.384            (6)
2-SW51A        $  1,584,810.618            (5)
2-SW51B        $  1,584,810.618            (6)
2-SW52A        $  1,485,492.599            (5)
2-SW52B        $  1,485,492.599            (6)
2-SW53A        $  1,415,863.959            (5)
2-SW53B        $  1,415,863.959            (6)
2-SW54A        $ 33,414,651.714            (5)
2-SW54B        $ 33,414,651.714            (6)
SWR                          (7)           (7)
</TABLE>

(1)  The interest rate on the Class 1-SW1 Interest shall be a per annum rate
     equal to the Group One Net WAC.

(2)  For any Distribution Date, the interest rate on each SWAP REMIC Regular
     Interest beginning with the designation "1" and ending with the designation
     "A" shall be a per annum rate equal to 2 times the Group One Net WAC,
     subject to a maximum rate of 2 times the REMIC Swap Rate for such
     Distribution Date.

(3)  For any Distribution Date, the interest rate on each SWAP REMIC Regular
     Interest beginning with the designation "1" and ending with the designation
     "B" shall be a per annum rate equal to the greater of (x) the excess, if
     any, of (i) 2 times the Group One Net WAC over (ii) 2 times the REMIC Swap
     Rate for such Distribution Date and (y) 0.00%.

(4)  The interest rate on the Class 2-SW2 Interest shall be a per annum rate
     equal to the Group Two Net WAC.

(5)  For any Distribution Date, the interest rate on each SWAP REMIC Regular
     Interest beginning with the designation "2" and ending with the designation
     "A" shall be a per annum rate equal to 2 times the Group Two Net WAC,
     subject to a maximum rate of 2 times the REMIC Swap Rate for such
     Distribution Date.

(6)  For any Distribution Date, the interest rate on each SWAP REMIC Regular
     Interest beginning with the designation "2" and ending with the designation
     "B" shall be a per annum rate equal to the greater of (x) the excess, if
     any, of (i) 2 times the Group Two Net WAC over (ii) 2 times the REMIC Swap
     Rate for such Distribution Date and (y) 0.00%.

                                      -6-

<PAGE>

(7)  The Class SWR Interest shall have no principal amount and shall bear no
     interest.

THE LOWER TIER REMIC

The following table sets forth the designations, initial principal balances,
interest rates, Corresponding Classes of Certificates and related Mortgage Group
for each interest in the Lower Tier REMIC:

<TABLE>
<CAPTION>
                                                           Class(es) of
                                                          Corresponding
                                                     Certificates or Related
 Class   Initial Principal Balance   Interest Rate        Mortgage Group
------   -------------------------   -------------   -----------------------
<S>      <C>                         <C>             <C>
LTA-1                (1)                   (8)               A-1, R
LTA-2A               (1)                   (8)                A-2A
LTA-2B               (1)                   (8)                A-2B
LTA-2C               (1)                   (8)                A-2C
LTA-2D               (1)                   (8)                A-2D
LTM-1                (1)                   (8)                 M-1
LTM-2                (1)                   (8)                 M-2
LTM-3                (1)                   (8)                 M-3
LTM-4                (1)                   (8)                 M-4
LTM-5                (1)                   (8)                 M-5
LTM-6                (1)                   (8)                 M-6
LTB-1                (1)                   (8)                 B-1
LTB-2                (1)                   (8)                 B-2
LTB-3                (1)                   (8)                 B-3
LTIX                 (2)                   (8)                 N/A
LTII1A               (3)                   (8)              Group One
LTII1B               (4)                   (9)              Group One
LTII2A               (5)                   (8)              Group Two
LTII2B               (6)                  (10)              Group Two
LTIIX                (7)                   (8)                 N/A
LT-IO               (11)                  (11)                 N/A
LTR                 (12)                  (12)                 N/A
</TABLE>

(1)  The initial principal balance of each of these Lower Tier REMIC Regular
     Interests shall equal 1/4 of the initial Certificate Principal Balance of
     its Corresponding Certificates.

(2)  The initial principal balance of the Class LTIX Interest shall equal the
     excess of (i) 50% of the aggregate Cut-off Date Principal Balance of the
     Mortgage Loans over (ii) the initial principal balance of the Lower Tier
     REMIC I Marker Interests.

(3)  The initial principal balance of the Class LTII1A Interest shall equal
     0.05% of the excess of (i) the aggregate Cut-off Date Principal Balance of
     the Group One Mortgage Loans over (ii) the aggregate of the initial
     Certificate Principal Balances of Certificate Group One.

                                      -7-

<PAGE>

(4)  The initial principal balance of the Class LTII1B Interest shall equal
     0.05% of the aggregate Cut-off Date Principal Balance of the Group One
     Mortgage Loans.

(5)  The initial principal balance of the Class LTII2A Interest shall equal
     0.05% of the excess of (i) the aggregate Cut-off Date Principal Balance of
     the Group Two Mortgage Loans over (ii) the aggregate of the initial
     Certificate Principal Balances of Certificate Group Two.

(6)  The initial principal balance of the Class LTII2B Interest shall equal
     0.05% of the aggregate Cut-off Date Principal Balance of the Group Two
     Mortgage Loans.

(7)  The initial principal balance of the Class LTIIX Interest shall equal the
     excess of (i) 50% of the aggregate Cut-off Date Principal Balance of the
     Mortgage Loans over (ii) the initial principal balance of the Lower Tier
     REMIC II Marker Interests.

(8)  For each Distribution Date, the interest rate for each of the Lower Tier
     REMIC Regular Interests (other than the Class LTII1B, the Class LTII2B and
     the Class LT-IO Interests) shall be a per annum rate (but not less than
     zero) equal to the product of (i) the weighted average of the interest
     rates on the SWAP REMIC Regular Interests for such Distribution Date and
     (ii) a fraction the numerator of which is 30 and the denominator of which
     is the actual number of days in the Accrual Period for the LIBOR
     Certificates, provided however, that for any Distribution Date on which the
     Class LT-IO Interest is entitled to a portion of interest accruals on a
     SWAP REMIC Regular Interest ending with a designation "A" as described in
     footnote 11 below, such weighted average shall be computed by first
     subjecting the rate on such SWAP REMIC Regular Interest to a cap equal to
     Swap LIBOR for such Distribution Date.

(9)  For each Distribution Date, the interest rate for the Class LTII1B Interest
     shall be a per annum rate equal to the product of (i) the weighted average
     of the interest rates on the SWAP REMIC Regular Interests beginning with
     the designation "1" for such Distribution Date and (ii) a fraction the
     numerator of which is 30 and the denominator of which is the actual number
     of days in the Accrual Period for the LIBOR Certificates, provided,
     however, that for any Distribution Date on which the Class LT-IO Interest
     is entitled to a portion of interest accruals on a SWAP REMIC Regular
     Interest ending with a designation "A" as described in footnote 11 below,
     such weighted average shall be computed by first subjecting the rate on
     such SWAP REMIC Regular Interest to a cap equal to Swap LIBOR for such
     Distribution Date.

(10) For each Distribution Date, the interest rate for the Class LTII2B Interest
     shall be a per annum rate equal to the product of (i) the weighted average
     of the interest rates on the SWAP REMIC Regular Interests beginning with
     the designation "2" for such Distribution Date and (ii) a fraction the
     numerator of which is 30 and the denominator of which is the actual number
     of days in the Accrual Period for the LIBOR Certificates, provided,
     however, that for any Distribution Date on which the Class LT-IO Interest
     is entitled to a portion of interest accruals on a SWAP REMIC Regular
     Interest ending with a designation "A" as described in footnote 11 below,
     such weighted average shall be computed by first subjecting the rate on
     such SWAP REMIC Regular Interest to a cap equal to Swap LIBOR for such
     Distribution Date.

(11) The Class LT-IO Interest is an interest-only class that does not have a
     principal balance. For only those Distribution Dates listed in the first
     column of the table below, the Class LT-IO Interest shall be entitled to
     interest accrued on the SWAP REMIC Regular Interest listed in the second
     column below at a per annum rate equal to the excess, if any, of (i) the
     interest rate for such SWAP REMIC Regular Interest for such Distribution
     Date over (ii) Swap LIBOR for such Distribution Date.

<TABLE>
<CAPTION>
                       SWAP REMIC
Distribution Date   Regular Interest
-----------------   ----------------
<S>                 <C>
7                   Class 1-SW1A
                    Class 2-SW1A
</TABLE>

                                       -8-

<PAGE>

<TABLE>
<S>                 <C>
7-8                 Class 1-SW2A
                    Class 2-SW2A
7-9                 Class 1-SW3A
                    Class 2-SW3A
7-10                Class 1-SW4A
                    Class 2-SW4A
7-11                Class 1-SW5A
                    Class 2-SW5A
7-12                Class 1-SW6A
                    Class 2-SW6A
7-13                Class 1-SW7A
                    Class 2-SW7A
7-14                Class 1-SW8A
                    Class 2-SW8A
7-15                Class 1-SW9A
                    Class 2-SW9A
7-16                Class 1-SW10A
                    Class 2-SW10A
7-17                Class 1-SW11A
                    Class 2-SW11A
7-18                Class 1-SW12A
                    Class 2-SW12A
7-19                Class 1-SW13A
                    Class 2-SW13A
7-20                Class 1-SW14A
                    Class 2-SW14A
7-21                Class 1-SW15A
                    Class 2-SW15A
7-22                Class 1-SW16A
                    Class 2-SW16A
7-23                Class 1-SW17A
                    Class 2-SW17A
7-24                Class 1-SW18A
                    Class 2-SW18A
7-25                Class 1-SW19A
                    Class 2-SW19A
7-26                Class 1-SW20A
                    Class 2-SW20A
7-27                Class 1-SW21A
                    Class 2-SW21A
7-28                Class 1-SW22A
                    Class 2-SW22A
7-29                Class 1-SW23A
                    Class 2-SW23A
7-30                Class 1-SW24A
                    Class 2-SW24A
7-31                Class 1-SW25A
                    Class 2-SW25A
7-32                Class 1-SW26A
                    Class 2-SW26A
7-33                Class 1-SW27A
                    Class 2-SW27A
7-34                Class 1-SW28A
</TABLE>

                                       -9-

<PAGE>

<TABLE>
<S>                 <C>
                    Class 2-SW28A
7-35                Class 1-SW29A
                    Class 2-SW29A
7-36                Class 1-SW30A
                    Class 2-SW30A
7-37                Class 1-SW31A
                    Class 2-SW31A
7-38                Class 1-SW32A
                    Class 2-SW32A
7-39                Class 1-SW33A
                    Class 2-SW33A
7-40                Class 1-SW34A
                    Class 2-SW34A
7-41                Class 1-SW35A
                    Class 2-SW35A
7-42                Class 1-SW36A
                    Class 2-SW36A
7-43                Class 1-SW37A
                    Class 2-SW37A
7-44                Class 1-SW38A
                    Class 2-SW38A
7-45                Class 1-SW39A
                    Class 2-SW39A
7-46                Class 1-SW40A
                    Class 2-SW40A
7-47                Class 1-SW41A
                    Class 2-SW41A
7-48                Class 1-SW42A
                    Class 2-SW42A
7-49                Class 1-SW43A
                    Class 2-SW43A
7-50                Class 1-SW44A
                    Class 2-SW44A
7-51                Class 1-SW45A
                    Class 2-SW45A
7-52                Class 1-SW46A
                    Class 2-SW46A
7-53                Class 1-SW47A
                    Class 2-SW47A
7-54                Class 1-SW48A
                    Class 2-SW48A
7-55                Class 1-SW49A
                    Class 2-SW49A
7-56                Class 1-SW50A
                    Class 2-SW50A
7-57                Class 1-SW51A
                    Class 2-SW51A
7-58                Class 1-SW52A
                    Class 2-SW52A
7-59                Class 1-SW53A
                    Class 2-SW53A
7-60                Class 1-SW54A
                    Class 2-SW54A
</TABLE>

                                      -10-

<PAGE>

(12) The Class LTR Interest shall have no principal amount and shall bear no
     interest.

UPPER TIER REMIC

The following table sets forth the designation, the initial principal balances,
the interest rates and Classes of Related Certificates for each of the interests
in the Upper Tier REMIC.

<TABLE>
<CAPTION>
                                  Initial Principal          Class of Related
Class                                  Balance        Rate     Certificates
-----                             -----------------   ----   ----------------
<S>                               <C>                 <C>    <C>
UTA-1                             (1)                 (2)    A-1
UTA-2A                            (1)                 (2)    A-2A
UTA-2B                            (1)                 (2)    A-2B
UTA-2C                            (1)                 (2)    A-2C
UTA-2D                            (1)                 (2)    A-2D
UTM-1                             (1)                 (2)    M-1
UTM-2                             (1)                 (2)    M-2
UTM-3                             (1)                 (2)    M-3
UTM-4                             (1)                 (2)    M-4
UTM-5                             (1)                 (2)    M-5
UTM-6                             (1)                 (2)    M-6
UTB-1                             (1)                 (2)    B-1
UTB-2                             (1)                 (2)    B-2
UTB-3                             (1)                 (2)    B-3
Uncertificated Class C Interest   (3)                 (3)    N/A
UT-IO                             (4)                 (4)    N/A
Residual Interest                 (1)                 (2)    R
</TABLE>

(1)  The initial principal balance of each of these REMIC Regular Interests and
     the Residual Interest shall equal the initial principal balance of its
     Class of Related Certificates.

(2)  The interest rates on each of these REMIC Regular Interests and the
     Residual Interest shall be an annual rate equal to the Pass-Through Rate
     for the Class of Related Certificates, provided that in lieu of the
     applicable Available Funds Cap set forth in the definition of an applicable
     Pass-Through Rate, the applicable Upper Tier REMIC Net WAC Cap shall be
     used.

(3)  The Uncertificated Class C Interest shall have an initial principal balance
     equal to the initial Overcollateralization Amount. The Uncertificated Class
     C Interest shall accrue interest on a notional balance set forth in the
     definition of Class C Current Interest at a rate equal to the Class C
     Distributable Interest Rate. The Uncertificated Class C Interest shall be
     represented by the Class C Certificates.

(4)  The Class UT-IO Interest shall have no principal amount and will not have
     an interest rate, but will be entitled to 100% of the interest accrued with
     respect to the Class LT-IO Interest. The Class UT-IO Interest shall be
     represented by the Class C Certificates.

THE CERTIFICATES

     The following table sets forth the Class designation, interest rate and
initial Class principal amount for each Class of Certificates comprising
interests in the Trust Fund.

                                      -11-

<PAGE>

<TABLE>
<CAPTION>
Class   Initial Class Principal Amount   Interest Rate
-----   ------------------------------   -------------
<S>     <C>                              <C>
A-1     (1)                              (2)
A-2A    (1)                              (2)
A-2B    (1)                              (2)
A-2C    (1)                              (2)
A-2D    (1)                              (2)
M-1     (1)                              (2)
M-2     (1)                              (2)
M-3     (1)                              (2)
M-4     (1)                              (2)
M-5     (1)                              (2)
M-6     (1)                              (2)
B-1     (1)                              (2)
B-2     (1)                              (2)
B-3     (1)                              (2)
C       (3)                              (3)
P       (4)                              (4)
R       (1)                              (2)(5)
</TABLE>

(1)  Each of these Classes of Certificates shall have initial principal balances
     as set forth in Section 5.01 hereof.

(2)  Each of these Classes of Certificates shall bear interest at a per annum
     rate equal to the Pass-Through Rate for such Certificates set forth in the
     definitions herein.

(3)  For federal income tax purposes, the Class C Certificate shall represent
     (i) the right to receive all distributions with respect to the REMIC
     Regular Interests represented by the Uncertificated Class C Interest and
     the Class UT-IO Interest and (ii) certain rights and obligations with
     respect to notional principal contracts as described in Section 2.07.

(4)  The Class P Certificates shall be entitled to the amounts distributable
     pursuant to Section 4.04(b) hereof and shall not represent a REMIC regular
     interest.

(5)  The Class R Interest represents ownership of the Class SWR Interest, the
     Class LTR Interest and the Residual Interest.

     In consideration of the mutual agreements herein contained, the Depositor,
the Servicer and the Trustee hereby agree as follows:

                                      -12-
<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

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

     Accepted Servicing Practices: The Servicer's normal servicing practices,
which will conform to the mortgage servicing practices of prudent mortgage
lending institutions that service for their own account mortgage loans of the
same type as the Mortgage Loans in the jurisdictions in which the related
Mortgaged Properties are located.

     Accountant's Attestation: As defined in Section 3.18(b) hereof.

     Accrual Period: With respect to each Class of LIBOR Certificates, their
Corresponding REMIC Regular Interests and the Lower Tier REMIC Interests and any
Distribution Date, the period commencing on the immediately preceding
Distribution Date (or, in the case of the first Distribution Date, the Closing
Date) and ending on the day immediately preceding such Distribution Date and
with respect to the SWAP REMIC Regular Interests and any Distribution Date, the
calendar month immediately preceding the month in which such Distribution Date
occurs. All calculations of interest on each Class of LIBOR Certificates, their
Corresponding REMIC Regular Interests and the Lower Tier REMIC Interests will be
made on the basis of the actual number of days elapsed in the related Accrual
Period and a 360 day year and all calculations of interest on the SWAP REMIC
Regular Interests will be made on the basis of a 360-day year consisting of
twelve 30-day months.

     Additional Form 10-D Disclosure: As defined in Section 3.20 hereof.

     Adjustable Rate Mortgage Loan: A Mortgage Loan identified in the Mortgage
Loan Schedule as having a Mortgage Rate that is adjustable.

     Adjustment Date: As to each Adjustable Rate Mortgage Loan, each date on
which the related Mortgage Rate is subject to adjustment, as provided in the
related Mortgage Note.

     Advance: The aggregate of the advances required to be made by the Servicer
with respect to any Distribution Date pursuant to Section 4.01, the amount of
any such advances being equal to the sum of the aggregate amount of all payments
of principal and interest (or, with respect to the interest-only Mortgage Loans,
payments of scheduled interest) (net of the Servicing Fee) on the related
Mortgage Loans that were due during the applicable Due Period and not received
as of the close of business on the related Determination Date, except as
provided in Section 4.01 hereof, less the aggregate amount of any such
Delinquent payments that the Servicer has determined would constitute a
Non-Recoverable Advance were an advance to be made with respect thereto;
provided, however, that with respect to (i) any Mortgage Loan that is 150 days
delinquent or more (whether or not the Mortgage Loan has been converted to an
REO Property), (ii) shortfalls in principal and interest due to bankruptcy
proceedings or the application of the Relief Act or similar laws and (iii) the
principal portion of any amount paid on a Balloon Loan, there will be no
obligation to make advances and, provided further, however, that with respect to
any Mortgage Loan that has been converted to an REO Property which is less than
150 days delinquent, the obligation to make Advances shall only be to payments
of interest (subject to the

                                      -13-

<PAGE>

exceptions described above and net of the related Servicing Fees), to be
calculated after taking into account rental income.

     Advance Facility: A financing or other facility as described in Section
10.07.

     Advancing Person: A Person to whom the Servicer's rights under this
Agreement to be reimbursed for any Advances or Servicing Advances have been
assigned pursuant to Section 10.07.

     Affiliate: With respect to any specified Person, any other Person
controlling, controlled by or under common control with such Person. For the
purposes of this definition, "control" means the power to direct the management
and policies of a Person, directly or indirectly, whether through ownership of
voting securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

     Aggregate Certificate Principal Balance: For any date of determination, the
sum of the Class A-1 Certificate Principal Balance, the Class A-2A Certificate
Principal Balance, the Class A-2B Certificate Principal Balance, the Class A-2C
Certificate Principal Balance, the Class A-2D Certificate Principal Balance, the
Class R Certificate Principal Balance, the Class M-1 Certificate Principal
Balance, the Class M-2 Certificate Principal Balance, the Class M-3 Certificate
Principal Balance, the Class M-4 Certificate Principal Balance, the Class M-5
Certificate Principal Balance, the Class M-6 Certificate Principal Balance, the
Class B-1 Certificate Principal Balance, the Class B-2 Certificate Principal
Balance and the Class B-3 Certificate Principal Balance, in each case as of such
date of determination.

     Agreement: This Pooling and Servicing Agreement and any and all amendments
or supplements hereto made in accordance with the terms herein.

     Applied Realized Loss Amount: With respect to any Distribution Date, the
amount, if any, by which the sum of (i) the Aggregate Certificate Principal
Balance and (ii) the Class C Certificate Principal Balance after distributions
of principal on such Distribution Date exceeds the aggregate Stated Principal
Balance of the Mortgage Loans as of such Distribution Date.

     Appraised Value: With respect to a Mortgage Loan the proceeds of which were
used to purchase the related Mortgaged Property, the "Appraised Value" of a
Mortgaged Property is the lesser of (1) the appraised value based on an
appraisal made for the Sponsor by an independent fee appraiser at the time of
the origination of the related Mortgage Loan, and (2) the sales price of such
Mortgaged Property at such time of origination. With respect to a Mortgage Loan
the proceeds of which were used to refinance an existing mortgage loan, the
"Appraised Value" is the appraised value of the Mortgaged Property based upon
the appraisal obtained at the time of refinancing.

     Assessment of Compliance: As defined in Section 3.18(a) hereof.

     Assignment of Mortgage: An assignment of the Mortgage, notice of transfer
or equivalent instrument, in recordable form, sufficient under the laws of the
jurisdiction where the related Mortgaged Property is located to reflect of
record the sale and assignment of the Mortgage Loan to the Trustee, which
assignment, notice of transfer or equivalent instrument may, if permitted by
law, be in the form of one or more blanket assignments covering Mortgages
secured by Mortgaged Properties located in the same county.

                                      -14-

<PAGE>

     Auction: The one-time auction conducted by the Trustee, as described in
Section 9.01(b) hereof.

     Auction Date: The date on which the Auction occurs.

     Authenticating Agent: As defined in Section 5.10.

     Available Funds Cap: Any of the Class A-1 Available Funds Cap, the Class
A-2 Available Funds Cap or the Weighted Average Available Funds Cap.

     Balloon Loan: A Mortgage Loan having an original term to stated maturity of
approximately 15 or 30 years which provides for level monthly payments of
principal and interest based on a 30-, 40- or 50-year amortization schedule,
with a balloon payment of the remaining outstanding principal balance due on
such Mortgage Loan at its stated maturity.

     Book-Entry Certificates: Any of the Certificates that shall be registered
in the name of the Depository or its nominee, the ownership of which is
reflected on the books of the Depository or on the books of a Person maintaining
an account with the Depository (directly, as a "Depository Participant", or
indirectly, as an indirect participant in accordance with the rules of the
Depository and as described in Section 5.06). As of the Closing Date, each of
the Class A (other than the Class R Certificate), Class M and Class B
Certificates constitutes a Class of Book-Entry Certificates.

     Business Day: Any day other than (1) a Saturday or a Sunday, (2) a day on
which banking institutions in the State of California, State of Illinois, State
of Pennsylvania or in the City of New York, New York are authorized or
obligated by law or executive order to be closed, or (3) in addition to the
foregoing, with respect to Home Loan Services, Inc. only, a day on which the
New York Stock  Exchange is closed.

     Cap Contract Counterparty: Bear Stearns Financial Products Inc., and any
successor thereto.

     Certificate: Any one of the certificates of any Class executed by the
Trustee and authenticated by the Authenticating Agent in substantially the forms
attached hereto as Exhibit A.

     Certificate Account: The separate Eligible Account created and maintained
by the Trustee pursuant to Section 3.05(e) in the name of the Trustee for the
benefit of the Certificateholders and designated "LaSalle Bank National
Association, as trustee, in trust for registered holders of Merrill Lynch First
Franklin Mortgage Loan Trust, Mortgage Loan Asset-Backed Certificates, Series
2007-2." Funds in the Certificate Account shall be held in trust for the
Certificateholders for the uses and purposes set forth in this Agreement.

     Certificate Group: Either of Certificate Group One or Certificate Group
Two.

     Certificate Group One: The Class A-1 and Class R Certificates. For purposes
of Section 2.07 hereof, Certificate Group One shall be related to Group One.

     Certificate Group Two: The Class A-2 Certificates. For purposes of Section
2.07 hereof, Certificate Group Two shall be related to Group Two.

     Certificate Owner: With respect to a Book-Entry Certificate, the Person
that is the beneficial owner of such Book-Entry Certificate.

                                      -15-

<PAGE>

     Certificate Principal Balance: As to any Certificate and as of any
Distribution Date, the Initial Certificate Principal Balance of such Certificate
less the sum of (1) all amounts distributed with respect to such Certificate in
reduction of the Certificate Principal Balance thereof on previous Distribution
Dates pursuant to Section 4.04, and (2) any Applied Realized Loss Amounts
allocated to such Certificate on previous Distribution Dates pursuant to Section
4.04(i). On each Distribution Date, after all distributions of principal on such
Distribution Date, a portion of the Class C Interest Carry Forward Amount in an
amount equal to the excess of the Overcollateralization Amount on such
Distribution Date over the Overcollateralization Amount as of the preceding
Distribution Date (or, in the case of the first Distribution Date, the initial
Overcollateralization Amount (based on the Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date)) will be added to the aggregate
Certificate Principal Balance of the Class C Certificates (on a pro rata basis).
Notwithstanding the immediately preceding sentence, however, to the extent any
excess referred to in the immediately preceding sentence is attributable to
distributions of proceeds of the Swap Agreement, such sentence shall be applied
by substituting "Class C Unpaid Realized Loss Amount" for "Class C Interest
Carry Forward Amount". Notwithstanding the foregoing on any Distribution Date
relating to a Due Period in which a Subsequent Recovery has been received by the
Servicer, the Certificate Principal Balance of any Class of Certificates then
outstanding for which any Applied Realized Loss Amount has been allocated will
be increased, in order of seniority, by an amount equal to the lesser of (i) the
Unpaid Realized Loss Amount for such Class of Certificates and (ii) the total of
any Subsequent Recovery distributed on such date to the Certificateholders
(reduced by the amount of the increase in the Certificate Principal Balance of
any more senior Class of Certificates pursuant to this sentence on such
Distribution Date).

     Certificate Register: The register maintained pursuant to Section 5.02(a)
hereof.

     Certificateholder or Holder: The Person in whose name a Certificate is
registered in the Certificate Register (initially, Cede & Co., as nominee for
the Depository) in the case of any Class of Regular Certificates or the Class R
Certificate, except that solely for the purpose of giving any consent pursuant
to this Agreement, any Certificate registered in the name of the Depositor or
any Affiliate of the Depositor shall be deemed not to be Outstanding and the
Percentage Interest evidenced thereby shall not be taken into account in
determining whether the requisite amount of Percentage Interests necessary to
effect such consent has been obtained; provided, however, that if any such
Person (including the Depositor) owns 100% of the Percentage Interests evidenced
by a Class of Certificates, such Certificates shall be deemed to be Outstanding
for purposes of any provision hereof that requires the consent of the Holders of
Certificates of a particular Class as a condition to the taking of any action
hereunder. The Trustee is entitled to rely conclusively on a certification of
the Depositor or any Affiliate of the Depositor in determining which
Certificates are registered in the name of an Affiliate of the Depositor.

     Class: All Certificates bearing the same Class designation as set forth in
Section 5.01 hereof.

     Class A Certificate Principal Balance: As of any date of determination, the
sum of the Class A-1 Certificate Principal Balance, the Class A-2A Certificate
Principal Balance, the Class A-2B Certificate Principal Balance, the Class A-2C
Certificate Principal Balance, Class A-2D Certificate Principal Balance and the
Class R Certificate Principal Balance.

     Class A Certificates: Any of the Class A-1 Certificates, the Class A-2
Certificates and the Class R Certificates.

                                      -16-

<PAGE>

     Class A Principal Distribution Amount: With respect to any Distribution
Date (1) prior to the related Stepdown Date or any Distribution Date on which a
Stepdown Trigger Event exists, 100% of the Principal Distribution Amount for
such Distribution Date and (2) on or after the Stepdown Date where a Stepdown
Trigger Event does not exist, the excess of (A) the Class A Certificate
Principal Balance immediately prior to such Distribution Date over (B) the
lesser of (i) 61.40% of the aggregate Stated Principal Balance of the Mortgage
Loans as of such Distribution Date and (ii) the excess of the aggregate Stated
Principal Balance of the Mortgage Loans as of such Distribution Date over the
Minimum Required Overcollateralization Amount; provided, however, that in no
event will the Class A Principal Distribution Amount with respect to any
Distribution Date exceed the aggregate Certificate Principal Balance of the
Class A Certificates.

     Class A-1 Available Funds Cap: With respect to a Distribution Date, the per
annum rate equal to the product of (i) 12, (ii) the quotient of (x) the total
scheduled interest on the Mortgage Loans in Group One based on the Net Mortgage
Rates in effect on the related Due Date, less the pro rata portion (calculated
based on the ratio of the Stated Principal Balance of the Group One Mortgage
Loans to the Stated Principal Balance of the total pool of Mortgage Loans)
allocable to the Group One Mortgage Loans of any Net Swap Payments or Swap
Termination Payments (other than Defaulted Swap Termination Payments) owed to
the Swap Counterparty for such Distribution Date and (y) the aggregate Stated
Principal Balance of the Mortgage Loans in Group One as of the first day of the
related Accrual Period (or, in the case of the first Distribution Date, as of
the Cut-off Date) and (iii) a fraction, the numerator of which is 30, and the
denominator of which is the actual number of days in the related Accrual Period.
The Class A-1 Available Funds Cap shall relate to the Class A-1 Certificates.

     Class A-1 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class A-1 Certificates.

     Class A-1 Certificates: Any Certificate designated as a "Class A-1
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class A-1 Corridor Contract: The confirmation and agreement, including the
schedule thereto and the related credit support annex (attached as Exhibit M-4
hereto), between the Trustee on behalf of the Issuing Entity and the Cap
Contract Counterparty (attached as Exhibit M-1 hereto), with respect to the
Class A-1 Certificates.

     Class A-1 Corridor Contract Notional Balance: With respect to any
Distribution Date, the Class A-1 Corridor Contract Notional Balance set forth
for such Distribution Date in the Class A-1 LIBOR Table (attached as Schedule I
to Exhibit M-1 hereto).

     Class A-1 Corridor Contract Termination Date: The Distribution Date in
October 2007.

     Class A-1 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A-1 Pass-Through Rate on
the Class A-1 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class A-1
Current Interest or a Class A-1 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class A-1
Certificates.

                                      -17-

<PAGE>

     Class A-1 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class A-1 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
A-1 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class A-1 Pass-Through Rate for the
related Accrual Period.

     Class A-1 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.1400% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.2800% per annum.

     Class A-1 Maximum Rate Cap: With respect to a Distribution Date, the per
annum rate equal to the product of (i) 12, (ii) the quotient of (x) the total
scheduled interest that would have been due on the Group One Mortgage Loans had
the Adjustable Rate Mortgage Loans provided for interest at their maximum
lifetime Net Mortgage Rates and the Fixed Rate Mortgage Loans provided for
interest at their Net Mortgage Rates less the pro rata portion (calculated based
on the ratio of the Stated Principal Balance of the Group One Mortgage Loans to
the Stated Principal Balance of the total pool of Mortgage Loans) allocable to
the Group One Mortgage Loans of any Net Swap Payments or Swap Termination
Payments owed to the Swap Counterparty for such Distribution Date (other than
Defaulted Swap Termination Payments), and (y) the aggregate Stated Principal
Balance of the Group One Mortgage Loans as of the first day of the related
Accrual Period (or, in the case of the first Distribution Date, as of the
Cut-off Date) and (iii) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days in the related Accrual Period.
The Class A-1 Maximum Rate Cap shall relate to the Class A-1 Certificates.

     Class A-1 Pass-Through Rate: For the first Distribution Date, 5.460% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-1 Margin, (2) the Class A-1 Available Funds Cap for such
Distribution Date and (3) the Class A-1 Maximum Rate Cap for such Distribution
Date.

     Class A-1 Upper Collar: With respect to each Distribution Date with respect
to which payments are received on the Class A-1 Corridor Contract, a rate equal
to the lesser of One-Month LIBOR and 10.860% per annum.

     Class A-2 Available Funds Cap: With respect to a Distribution Date, the per
annum rate equal to the product of (i) 12, (ii) the quotient of (x) the total
scheduled interest on the Group Two Mortgage Loans based on the Net Mortgage
Rates in effect on the related Due Date, less the pro rata portion (calculated
based on the ratio of the Stated Principal Balance of the Group Two Mortgage
Loans to the Stated Principal Balance of the total pool of Mortgage Loans)
allocable to the Group Two Mortgage Loans of any Net Swap Payments or Swap
Termination Payments (other than Defaulted Swap Termination Payments) owed to
the Swap Counterparty for such Distribution Date, and (y) the aggregate Stated
Principal Balance of the Group Two Mortgage Loans as of the first day of the
related Accrual Period (or, in the case of the first Distribution Date, as of
the Cut-off Date) and (iii) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days in the related Accrual Period.
The Class A-2 Available Funds Cap shall relate to the Class A-2 Certificates.

     Class A-2 Certificates: Any of the Class A-2A, Class A-2B, Class A-2C and
Class A-2D Certificates.

                                      -18-

<PAGE>

     Class A-2 Corridor Contract: The confirmation and agreement, including the
schedule thereto and the related credit support annex (attached as Exhibit M-4
hereto), between the Trustee on behalf of the Issuing Entity and the Cap
Contract Counterparty (attached as Exhibit M-2 hereto), with respect to the
Class A-2 Certificates.

     Class A-2 Corridor Contract Notional Balance: With respect to any
Distribution Date, the Class A-2 Corridor Contract Notional Balance set forth
for such Distribution Date in the Class A-2 LIBOR Cap Table (attached as
Schedule I to Exhibit M-2 hereto).

     Class A-2 Corridor Contract Termination Date: The Distribution Date in
October 2007.

     Class A-2 Maximum Rate Cap: With respect to a Distribution Date, the per
annum rate equal to the product of (i) 12, (ii) the quotient of (x) the total
scheduled interest that would have been due on the Group Two Mortgage Loans had
the Adjustable Rate Mortgage Loans provided for interest at their maximum
lifetime Net Mortgage Rates and the Fixed Rate Mortgage Loans provided for
interest at their Net Mortgage Rates less the pro rata portion (calculated based
on the ratio of the Stated Principal Balance of the Group Two Mortgage Loans to
the Stated Principal Balance of the total pool of Mortgage Loans) allocable to
the Group Two Mortgage Loans of any Net Swap Payments or Swap Termination
Payments owed to the Swap Counterparty for such Distribution Date (other than
Defaulted Swap Termination Payments), and (y) the aggregate Stated Principal
Balance of the Group Two Mortgage Loans as of the first day of the related
Accrual Period (or, in the case of the first Distribution Date, as of the
Cut-off Date) and (iii) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days in the related Accrual Period.
The Class A-2 Maximum Rate Cap shall relate to the Class A-2 Certificates.

     Class A-2 Upper Collar: With respect to each Distribution Date with respect
to which payments are received on the Class A-2 Corridor Contract, a rate equal
to the lesser of One-Month LIBOR and 10.280% per annum.

     Class A-2A Certificate: Any Certificate designated as a "Class A-2A
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class A-2A Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class A-2A Certificates.

     Class A-2A Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A-2A Pass-Through Rate on
the Class A-2A Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class A-2A
Current Interest or a Class A-2A Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class A-2A
Certificates. For purposes of calculating interest, principal distributions on a
Distribution Date will be deemed to have been made on the first day of the
Accrual Period in which such Distribution Date occurs.

     Class A-2A Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class A-2A Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
A-2A Certificates with respect to Current Interest or Interest

                                      -19-

<PAGE>

Carry Forward Amounts on such prior Distribution Dates and (2) interest on such
excess (to the extent permitted by applicable law) at the Class A-2A
Pass-Through Rate for the related Accrual Period.

     Class A-2A Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.1100% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.2200% per annum.

     Class A-2A Pass-Through Rate: For the first Distribution Date, 5.430% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-2A Margin, (2) the Class A-2 Available Funds Cap for such
Distribution Date and (3) the Class A-2 Maximum Rate Cap for such Distribution
Date.

     Class A-2B Certificate: Any Certificate designated as a "Class A-2B
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class A-2B Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class A-2B Certificates.

     Class A-2B Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A-2B Pass-Through Rate on
the Class A-2B Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class A-2B
Current Interest or a Class A-2B Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class A-2B
Certificates. For purposes of calculating interest, principal distributions on a
Distribution Date will be deemed to have been made on the first day of the
Accrual Period in which such Distribution Date occurs.

     Class A-2B Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class A-2B Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
A-2B Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class A-2B Pass-Through Rate for the
related Accrual Period.

     Class A-2B Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.1700% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.3400% per annum.

     Class A-2B Pass-Through Rate: For the first Distribution Date, 5.490% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-2B Margin, (2) the Class A-2 Available Funds Cap for such
Distribution Date and (3) the Class A-2 Maximum Rate Cap for such Distribution
Date.

     Class A-2C Certificate: Any Certificate designated as a "Class A-2C
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

                                      -20-

<PAGE>

     Class A-2C Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class A-2C Certificates.

     Class A-2C Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A-2C Pass-Through Rate on
the Class A-2C Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class A-2C
Current Interest or a Class A-2C Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class A-2C
Certificates. For purposes of calculating interest, principal distributions on a
Distribution Date will be deemed to have been made on the first day of the
Accrual Period in which such Distribution Date occurs.

     Class A-2C Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class A-2C Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
A-2C Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class A-2C Pass-Through Rate for the
related Accrual Period.

     Class A-2C Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.2400% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.4800% per annum.

     Class A-2C Pass-Through Rate: For the first Distribution Date, 5.560% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-2C Margin, (2) the Class A-2 Available Funds Cap for such
Distribution Date and (3) the Class A-2 Maximum Rate Cap for such Distribution
Date.

     Class A-2D Certificate: Any Certificate designated as a "Class A-2D
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class A-2D Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class A-2D Certificates.

     Class A-2D Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A-2D Pass-Through Rate on
the Class A-2D Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class A-2D
Current Interest or a Class A-2D Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class A-2D
Certificates. For purposes of calculating interest, principal distributions on a
Distribution Date will be deemed to have been made on the first day of the
Accrual Period in which such Distribution Date occurs.

     Class A-2D Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class A-2D Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
A-2D Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class A-2D Pass-Through Rate for the
related Accrual Period.

                                      -21-
<PAGE>

     Class A-2D Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.3200% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.6400% per annum.

     Class A-2D Pass-Through Rate: For the first Distribution Date, 5.640% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-2D Margin, (2) the Class A-2 Available Funds Cap for such
Distribution Date and (3) the Class A-2 Maximum Rate Cap for such Distribution
Date.

     Class B Certificates: Any of the Class B-1, Class B-2 and Class B-3
Certificates.

     Class B-1 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class B-1 Certificates.

     Class B-1 Certificate: Any Certificate designated as a "Class B-1
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class B-1 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class B-1 Certificates.

     Class B-1 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class B-1 Pass-Through Rate on
the Class B-1 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class B-1
Current Interest or a Class B-1 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class B-1
Certificates.

     Class B-1 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class B-1 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
B-1 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class B-1 Pass-Through Rate for the
related Accrual Period.

     Class B-1 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.2000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.3000% per annum.

     Class B-1 Pass-Through Rate: For the first Distribution Date, 7.520% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class B-1 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class B-1 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance and the
Class M Certificate Principal Balance, have been reduced to zero and a Stepdown
Trigger Event exists, or as long as a Stepdown Trigger Event does not exist, the
excess of

                                      -22-

<PAGE>

(1) the sum of (A) the Class A Certificate Principal Balance (after
taking into account distributions of the Class A Principal Distribution Amount
on such Distribution Date), (B) the Class M-1 Certificate Principal Balance
(after taking into account distributions of the Class M-1 Principal Distribution
Amount on such Distribution Date), (C) the Class M-2 Certificate Principal
Balance (after taking into account distributions of the Class M-2 Principal
Distribution Amount on such Distribution Date), (D) the Class M-3 Certificate
Principal Balance (after taking into account distributions of the Class M-3
Principal Distribution Amount on such Distribution Date), (E) the Class M-4
Certificate Principal Balance (after taking into account distributions of the
Class M-4 Principal Distribution Amount on such Distribution Date), (F) the
Class M-5 Certificate Principal Balance (after taking into account distributions
of the Class M-5 Principal Distribution Amount on such Distribution Date), (G)
the Class M-6 Certificate Principal Balance (after taking into account
distributions of the Class M-6 Principal Distribution Amount on such
Distribution Date) and (H) the Class B-1 Certificate Principal Balance
immediately prior to such Distribution Date over (2) the lesser of (A) 89.50% of
the Stated Principal Balance of the Mortgage Loans as of such Distribution Date
and (B) the excess of the Stated Principal Balance of the Mortgage Loans as of
such Distribution Date over the Minimum Required Overcollateralization Amount.
Notwithstanding the foregoing, (I) on any Distribution Date prior to the
Stepdown Date on which the Certificate Principal Balance of each Class of Class
A Certificates and Class M Certificates has been reduced to zero, the Class B-1
Principal Distribution Amount will equal the lesser of (x) the outstanding
Certificate Principal Balance of the Class B-1 Certificates and (y) 100% of the
Principal Distribution Amount remaining after any distributions on such Class A
and Class M Certificates and (II) in no event will the Class B-1 Principal
Distribution Amount with respect to any Distribution Date exceed the Class B-1
Certificate Principal Balance.

     Class B-1 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class B-1 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class B-1 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of the Class B-1 Certificates pursuant to the last sentence of
the definition of "Certificate Principal Balance."

     Class B-2 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class B-2 Certificates.

     Class B-2 Certificate: Any Certificate designated as a "Class B-2
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class B-2 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class B-2 Certificates.

     Class B-2 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class B-2 Pass-Through Rate on
the Class B-2 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class B-2
Current Interest or a Class B-2 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class B-2
Certificates.

                                      -23-

<PAGE>

     Class B-2 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class B-2 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
B-2 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class B-2 Pass-Through Rate for the
related Accrual Period.

     Class B-2 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.2000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.3000% per annum.

     Class B-2 Pass-Through Rate: For the first Distribution Date, 7.520% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class B-2 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class B-2 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, the
Class M Certificate Principal Balance and the Class B-1 Certificate Principal
Balance have been reduced to zero and a Stepdown Trigger Event exists, or as
long as a Stepdown Trigger Event does not exist, the excess of (1) the sum of
(A) the Class A Certificate Principal Balance (after taking into account
distributions of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class M-1 Certificate Principal Balance (after taking into
account distributions of the Class M-1 Principal Distribution Amount on such
Distribution Date), (C) the Class M-2 Certificate Principal Balance (after
taking into account distributions of the Class M-2 Principal Distribution Amount
on such Distribution Date), (D) the Class M-3 Certificate Principal Balance
(after taking into account distributions of the Class M-3 Principal Distribution
Amount on such Distribution Date), (E) the Class M-4 Certificate Principal
Balance (after taking into account distributions of the Class M-4 Principal
Distribution Amount on such Distribution Date), (F) the Class M-5 Certificate
Principal Balance (after taking into account distributions of the Class M-5
Principal Distribution Amount on such Distribution Date), (G) the Class M-6
Certificate Principal Balance (after taking into account distributions of the
Class M-6 Principal Distribution Amount on such Distribution Date), (H) the
Class B-1 Certificate Principal Balance (after taking into account distributions
of the Class B-1 Principal Distribution Amount on such Distribution Date) and
(I) the Class B-2 Certificate Principal Balance immediately prior to such
Distribution Date over (2) the lesser of (A) 91.10% of the Stated Principal
Balance of the Mortgage Loans as of such Distribution Date and (B) the excess of
the Stated Principal Balance of the Mortgage Loans as of such Distribution Date
over the Minimum Required Overcollateralization Amount. Notwithstanding the
foregoing, (I) on any Distribution Date prior to the Stepdown Date on which the
Certificate Principal Balance of each Class of Class A, Class M and Class B-1
Certificates has been reduced to zero, the Class B-2 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class B-2 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A, Class M and Class B-1
Certificates and (II) in no event will the Class B-2 Principal Distribution
Amount with respect to any Distribution Date exceed the Class B-2 Certificate
Principal Balance.

     Class B-2 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class B-2 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class B-2 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the

                                      -24-

<PAGE>

Certificate Principal Balance of the Class B-2 Certificates pursuant to the last
sentence of the definition of "Certificate Principal Balance."

     Class B-3 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class B-3 Certificates.

     Class B-3 Certificate: Any Certificate designated as a "Class B-3
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class B-3 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class B-3 Certificates.

     Class B-3 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class B-3 Pass-Through Rate on
the Class B-3 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class B-3
Current Interest or a Class B-3 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class B-3
Certificates.

     Class B-3 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class B-3 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
B-3 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class B-3 Pass-Through Rate for the
related Accrual Period.

     Class B-3 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.2000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.3000% per annum.

     Class B-3 Pass-Through Rate: For the first Distribution Date, 7.520% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class B-3 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class B-3 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, the
Class M Certificate Principal Balance, the Class B-1 Certificate Principal
Balance and the Class B-2 Certificate Principal Balance have been reduced to
zero and a Stepdown Trigger Event exists, or as long as a Stepdown Trigger Event
does not exist, the excess of (1) the sum of (A) the Class A Certificate
Principal Balance (after taking into account distributions of the Class A
Principal Distribution Amount on such Distribution Date), (B) the Class M-1
Certificate Principal Balance (after taking into account distributions of the
Class M-1 Principal Distribution Amount on such Distribution Date), (C) the
Class M-2 Certificate Principal Balance (after taking into account distributions
of the Class M-2 Principal Distribution Amount on such Distribution Date), (D)
the Class M-3 Certificate Principal Balance (after taking into account
distributions of the Class M-3 Principal Distribution Amount on such
Distribution Date), (E) the Class M-4 Certificate Principal Balance (after
taking into account

                                      -25-

<PAGE>

distributions of the Class M-4 Principal Distribution Amount on such
Distribution Date), (F) the Class M-5 Certificate Principal Balance (after
taking into account distributions of the Class M-5 Principal Distribution Amount
on such Distribution Date), (G) the Class M-6 Certificate Principal Balance
(after taking into account distributions of the Class M-6 Principal Distribution
Amount on such Distribution Date), (H) the Class B-1 Certificate Principal
Balance (after taking into account distributions of the Class B-1 Principal
Distribution Amount on such Distribution Date), (I) the Class B-2 Certificate
Principal Balance (after taking into account distributions of the Class B-2
Principal Distribution Amount on such Distribution Date) and (J) the Class B-3
Certificate Principal Balance immediately prior to such Distribution Date over
(2) the lesser of (A) 93.50% of the Stated Principal Balance of the Mortgage
Loans as of such Distribution Date and (B) the excess of the Stated Principal
Balance of the Mortgage Loans as of such Distribution Date over the Minimum
Required Overcollateralization Amount. Notwithstanding the foregoing, (I) on any
Distribution Date prior to the Stepdown Date on which the Certificate Principal
Balance of each Class of Class A, Class M, Class B-1 and Class B-2 Certificates
has been reduced to zero, the Class B-3 Principal Distribution Amount will equal
the lesser of (x) the outstanding Certificate Principal Balance of the Class B-3
Certificates and (y) 100% of the Principal Distribution Amount remaining after
any distributions on such Class A, Class M, Class B-1 and Class B-2 Certificates
and (II) in no event will the Class B-3 Principal Distribution Amount with
respect to any Distribution Date exceed the Class B-3 Certificate Principal
Balance.

     Class B-3 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class B-3 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class B-3 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of the Class B-3 Certificates pursuant to the last sentence of
the definition of "Certificate Principal Balance".

     Class C Applied Realized Loss Amount: As of any Distribution Date, the sum
of all Applied Realized Loss Amounts with respect to the Mortgage Loans which
have been applied to the reduction of the Certificate Principal Balance of the
Class C Certificates.

     Class C Certificate: Any Certificate designated as a "Class C Certificate"
on the face thereof, executed by the Trustee and authenticated by the
Authenticating Agent in substantially the form set forth in Exhibit A hereto,
representing the right to distributions as set forth herein.

     Class C Certificate Principal Balance: As of any date of determination, the
aggregate Certificate Principal Balance of the Class C Certificates.

     Class C Current Interest: As of any Distribution Date, the interest accrued
during the related Accrual Period at the Class C Distributable Interest Rate on
a notional amount equal to the aggregate principal balance of the Lower Tier
REMIC Regular Interests immediately prior to such Distribution Date, plus the
interest portion of any previous distributions on such Class that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class C
Certificates.

     Class C Distributable Interest Rate: The excess, if any, of (a) the
weighted average of the interest rates on the Lower Tier REMIC Regular Interests
(other than the Class LT-IO Interest) over (b) two times the weighted average of
the interest rates on the Lower Tier REMIC I Marker Interests and the Class LTIX
Interest (treating for purposes of this clause (b) the interest rate on each of
the Lower Tier REMIC I Marker Interests as being subject to a cap and a floor
equal to the interest rate of the Corresponding

                                      -26-

<PAGE>

REMIC Regular Interest of the Corresponding Certificates (as adjusted, if
necessary, to reflect the length of the Accrual Period for the LIBOR
Certificates) and treating the Class LTIX Interest as being capped at zero). The
averages described in the preceding sentence shall be weighted on the basis of
the respective principal balances of the Lower Tier REMIC Regular Interests
immediately prior to any date of determination.

     Class C Interest Carry Forward Amount: As of any Distribution Date, the
excess of (A) the Class C Current Interest with respect to prior Distribution
Dates over (B) the amount actually distributed to the Class C Certificates with
respect to interest on such prior Distribution Dates or added to the aggregate
Certificate Principal Balance of the Class C Certificates (other than amounts so
added attributable to Subsequent Recoveries or proceeds of the Swap Agreement).

     Class C Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class C Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class C Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class C Certificates (A) pursuant to the last sentence
of the definition of "Certificate Principal Balance" or (B) attributable to
distributions of proceeds of the Swap Agreement.

     Class LTA-1 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificates and an interest rate equal to the Net
Rate.

     Class LTA-2A Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTA-2B Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTA-2C Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTA-2D Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTB-1 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTB-2 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

                                      -27-

<PAGE>

     Class LTB-3 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LT-IO Interest: An uncertificated regular interest in the Lower Tier
REMIC with the characteristics set forth in the description of the Lower Tier
REMIC in the Preliminary Statement.

     Class LTIX Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to the excess of (i) 50% of the
aggregate Cut-off Date Principal Balance of the Mortgage Loans over (ii) the
initial principal balance of the Lower Tier REMIC I Marker Interests, and with
an interest rate equal to the Net Rate.

     Class LTIIX Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to the excess of (i) 50% of the
aggregate Cut-off Date Principal Balance of the Mortgage Loans over (ii) the
initial principal balance of the Lower Tier REMIC II Marker Interests, and with
an interest rate equal to the Net Rate.

     Class LTII1A Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 0.05% of the excess of (i) the
aggregate Cut-off Date Principal Balance of the Group One Mortgage Loans over
(ii) the aggregate of the initial Certificate Principal Balances of Certificate
Group One, and with an interest rate equal to the Net Rate.

     Class LTII1B Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 0.05% of the aggregate Cut-off
Date Principal Balance of the Group One Mortgage Loans, and with an interest
rate equal to the rate set forth in footnote 9 to the description of the Lower
Tier REMIC in the Preliminary Statement.

     Class LTII2A Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 0.05% of the excess of (i) the
aggregate Cut-off Date Principal Balance of the Group Two Mortgage Loans over
(ii) the aggregate of the initial Certificate Principal Balances of Certificate
Group Two, and with an interest rate equal to the Net Rate.

     Class LTII2B Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 0.05% of the aggregate Cut-off
Date Principal Balance of the Group Two Mortgage Loans and with an interest rate
equal to the rate set forth in footnote 10 to the description of the Lower Tier
REMIC in the Preliminary Statement.

     Class LTM-1 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTM-2 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTM-3 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

                                      -28-

<PAGE>

     Class LTM-4 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTM-5 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTM-6 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTR Interest: The sole class of "residual interest" in the Lower Tier
REMIC.

     Class M Certificates: Any of the Class M-1, Class M-2, Class M-3, Class
M-4, Class M-5 and Class M-6 Certificates.

     Class M Certificate Principal Balance: For any date of determination, the
sum of the Class M-1 Certificate Principal Balance, Class M-2 Certificate
Principal Balance, Class M-3 Certificate Principal Balance, Class M-4
Certificate Principal Balance, Class M-5 Certificate Principal Balance and Class
M-6 Certificate Principal Balance.

     Class M-1 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-1 Certificates.

     Class M-1 Certificate: Any Certificate designated as a "Class M-1
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class M-1 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-1 Certificates.

     Class M-1 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-1 Pass-Through Rate on
the Class M-1 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class M-1
Current Interest or a Class M-1 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class M-1
Certificates.

     Class M-1 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-1 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-1 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class M-1 Pass-Through Rate for the
related Accrual Period.

                                      -29-

<PAGE>

     Class M-1 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.3800% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.5700% per annum.

     Class M-1 Pass-Through Rate: For the first Distribution Date, 5.700% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-1 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-1 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-1 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-1 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-1 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class M-1 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance has been
reduced to zero and a Stepdown Trigger Event exists, or as long as a Stepdown
Trigger Event does not exist, the excess of (1) the sum of (A) the Class A
Certificate Principal Balance (after taking into account distributions of the
Class A Principal Distribution Amount on such Distribution Date) and (B) the
Class M-1 Certificate Principal Balance immediately prior to such Distribution
Date over (2) the lesser of (A) 69.30% of the Stated Principal Balances of the
Mortgage Loans as of such Distribution Date and (B) the excess of the Stated
Principal Balances for the Mortgage Loans as of such Distribution Date over the
Minimum Required Overcollateralization Amount. Notwithstanding the foregoing,
(I) on any Distribution Date prior to the Stepdown Date on which the Certificate
Principal Balance of each Class of Class A Certificates has been reduced to
zero, the Class M-1 Principal Distribution Amount will equal the lesser of (x)
the outstanding Certificate Principal Balance of the Class M-1 Certificates and
(y) 100% of the Principal Distribution Amount remaining after any distributions
on such Class A Certificates and (II) in no event will the Class M-1 Principal
Distribution Amount with respect to any Distribution Date exceed the Class M-1
Certificate Principal Balance.

     Class M-2 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-2 Certificates.

     Class M-2 Certificate: Any Certificate designated as a "Class M-2
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class M-2 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-2 Certificates.

     Class M-2 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-2 Pass-Through Rate on
the Class M-2 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class M-2
Current Interest or a Class M-2 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class M-2
Certificates.

                                      -30-

<PAGE>

     Class M-2 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-2 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-2 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class M-2 Pass-Through Rate for the
related Accrual Period.

     Class M-2 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.4700% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.7050% per annum.

     Class M-2 Pass-Through Rate: For the first Distribution Date, 5.790% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-2 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-2 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance and
Class M-1 Certificate Principal Balance have been reduced to zero and a Stepdown
Trigger Event exists, or as long as a Stepdown Trigger Event does not exist, the
excess of (1) the sum of (A) the Class A Certificate Principal Balance (after
taking into account distributions of the Class A Principal Distribution Amount
on such Distribution Date), (B) the Class M-1 Certificate Principal Balance
(after taking into account distributions of the Class M-1 Principal Distribution
Amount on such Distribution Date) and (C) the Class M-2 Certificate Principal
Balance immediately prior to such Distribution Date over (2) the lesser of (A)
77.10% of the Stated Principal Balances of the Mortgage Loans as of such
Distribution Date and (B) the excess of the Stated Principal Balances for the
Mortgage Loans as of such Distribution Date over the Minimum Required
Overcollateralization Amount. Notwithstanding the foregoing, (I) on any
Distribution Date prior to the Stepdown Date on which the Certificate Principal
Balance of each Class of Class A Certificates and the Class M-1 Certificates has
been reduced to zero, the Class M-2 Principal Distribution Amount will equal the
lesser of (x) the outstanding Certificate Principal Balance of the Class M-2
Certificates and (y) 100% of the Principal Distribution Amount remaining after
any distributions on such Class A and Class M-1 Certificates and (II) in no
event will the Class M-2 Principal Distribution Amount with respect to any
Distribution Date exceed the Class M-2 Certificate Principal Balance.

     Class M-2 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-2 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-2 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-2 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class M-3 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-3 Certificates.

     Class M-3 Certificate: Any Certificate designated as a "Class M-3
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

                                      -31-

<PAGE>

     Class M-3 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-3 Certificates.

     Class M-3 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-3 Pass-Through Rate on
the Class M-3 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class M-3
Current Interest or a Class M-3 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class M-3
Certificates.

     Class M-3 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-3 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-3 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class M-3 Pass-Through Rate for the
related Accrual Period.

     Class M-3 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.5800% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.8700% per annum.

     Class M-3 Pass-Through Rate: For the first Distribution Date, 5.900% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-3 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-3 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance and Class M-2 Certificate Principal Balance
have been reduced to zero and a Stepdown Trigger Event exists, or as long as a
Stepdown Trigger Event does not exist, the excess of (1) the sum of (A) the
Class A Certificate Principal Balance (after taking into account distributions
of the Class A Principal Distribution Amount on such Distribution Date), (B) the
Class M-1 Certificate Principal Balance (after taking into account distributions
of the Class M-1 Principal Distribution Amount on such Distribution Date), (C)
the Class M-2 Certificate Principal Balance (after taking into account
distributions of the Class M-2 Principal Distribution Amount on such
Distribution Date) and (C) the Class M-3 Certificate Principal Balance
immediately prior to such Distribution Date over (2) the lesser of (A) 79.60% of
the Stated Principal Balances of the Mortgage Loans as of such Distribution Date
and (B) the excess of the Stated Principal Balances for the Mortgage Loans as of
such Distribution Date over the Minimum Required Overcollateralization Amount.
Notwithstanding the foregoing, (I) on any Distribution Date prior to the
Stepdown Date on which the Certificate Principal Balance of each Class of Class
A Certificates, the Class M-1 Certificates and the Class M-2 Certificates has
been reduced to zero, the Class M-3 Principal Distribution Amount will equal the
lesser of (x) the outstanding Certificate Principal Balance of the Class M-3
Certificates and (y) 100% of the Principal Distribution Amount remaining after
any distributions on such Class A, Class M-1 and Class M-2 Certificates and (II)
in no event will the Class M-3 Principal Distribution Amount with respect to any
Distribution Date exceed the Class M-3 Certificate Principal Balance.

     Class M-3 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-3 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the

                                      -32-

<PAGE>

Class M-3 Unpaid Realized Loss Amounts on all previous Distribution Dates and
(y) all increases in the Certificate Principal Balance of such Class M-3
Certificates pursuant to the last sentence of the definition of "Certificate
Principal Balance."

     Class M-4 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-4 Certificates.

     Class M-4 Certificate: Any Certificate designated as a "Class M-4
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class M-4 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-4 Certificates.

     Class M-4 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-4 Pass-Through Rate on
the Class M-4 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class M-4
Current Interest or a Class M-4 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class M-4
Certificates.

     Class M-4 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-4 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-4 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class M-4 Pass-Through Rate for the
related Accrual Period.

     Class M-4 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 1.000% per annum and, as of any
Distribution Date after the Initial Optional Termination Date, 1.500% per annum.

     Class M-4 Pass-Through Rate: For the first Distribution Date, 6.320% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-4 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-4 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance, Class M-2 Certificate Principal Balance and
Class M-3 Certificate Principal Balance have been reduced to zero and a Stepdown
Trigger Event exists, or as long as a Stepdown Trigger Event does not exist, the
excess of (1) the sum of (A) the Class A Certificate Principal Balance (after
taking into account distributions of the Class A Principal Distribution Amount
on such Distribution Date), (B) the Class M-1 Certificate Principal Balance
(after taking into account distributions of the Class M-1 Principal Distribution
Amount on such Distribution Date), (C) the Class M-2 Certificate Principal
Balance (after taking into account distributions of the Class M-2 Principal
Distribution Amount on such Distribution Date), (D) the Class M-3 Certificate
Principal Balance (after taking into account distributions of the Class M-3
Principal Distribution Amount on such

                                      -33-

<PAGE>

Distribution Date) and (E) the Class M-4 Certificate Principal Balance
immediately prior to such Distribution Date over (2) the lesser of (A) 82.70% of
the Stated Principal Balances of the Mortgage Loans as of such Distribution Date
and (B) the excess of the Stated Principal Balances for the Mortgage Loans as of
such Distribution Date over the Minimum Required Overcollateralization Amount.
Notwithstanding the foregoing, (I) on any Distribution Date prior to the
Stepdown Date on which the Certificate Principal Balance of each Class of Class
A Certificates, the Class M-1 Certificates, the Class M-2 Certificates and the
Class M-3 Certificates has been reduced to zero, the Class M-4 Principal
Distribution Amount will equal the lesser of (x) the outstanding Certificate
Principal Balance of the Class M-4 Certificates and (y) 100% of the Principal
Distribution Amount remaining after any distributions on such Class A, Class
M-1, Class M-2 and Class M-3 Certificates and (II) in no event will the Class
M-4 Principal Distribution Amount with respect to any Distribution Date exceed
the Class M-4 Certificate Principal Balance.

     Class M-4 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-4 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-4 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-4 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class M-5 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-5 Certificates.

     Class M-5 Certificate: Any Certificate designated as a "Class M-5
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class M-5 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-5 Certificates.

     Class M-5 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-5 Pass-Through Rate on
the Class M-5 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class M-5
Current Interest or a Class M-5 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class M-5
Certificates.

     Class M-5 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-5 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-5 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class M-5 Pass-Through Rate for the
related Accrual Period.

     Class M-5 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 1.2500% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 1.8750% per annum.

                                      -34-
<PAGE>

     Class M-5 Pass-Through Rate: For the first Distribution Date, 6.570% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-5 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-5 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance, Class M-2 Certificate Principal Balance,
Class M-3 Certificate Principal Balance and Class M-4 Certificate Principal
Balance have been reduced to zero and a Stepdown Trigger Event exists, or as
long as a Stepdown Trigger Event does not exist, the excess of (1) the sum of
(A) the Class A Certificate Principal Balance (after taking into account
distributions of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class M-1 Certificate Principal Balance (after taking into
account distributions of the Class M-1 Principal Distribution Amount on such
Distribution Date), (C) the Class M-2 Certificate Principal Balance (after
taking into account distributions of the Class M-2 Principal Distribution Amount
on such Distribution Date), (D) the Class M-3 Certificate Principal Balance
(after taking into account distributions of the Class M-3 Principal Distribution
Amount on such Distribution Date), (D) the Class M-4 Certificate Principal
Balance (after taking into account distributions of the Class M-4 Principal
Distribution Amount on such Distribution Date) and (E) the Class M-5 Certificate
Principal Balance immediately prior to such Distribution Date over (2) the
lesser of (A) 85.30% of the Stated Principal Balances of the Mortgage Loans as
of such Distribution Date and (B) the excess of the Stated Principal Balances
for the Mortgage Loans as of such Distribution Date over the Minimum Required
Overcollateralization Amount. Notwithstanding the foregoing, (I) on any
Distribution Date prior to the Stepdown Date on which the Certificate Principal
Balance of each Class of Class A Certificates, the Class M-1 Certificates, the
Class M-2 Certificates, the Class M-3 Certificates and the Class M-4
Certificates has been reduced to zero, the Class M-5 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class M-5 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A, Class M-1, Class M-2,
Class M-3 and Class M-4 Certificates and (II) in no event will the Class M-5
Principal Distribution Amount with respect to any Distribution Date exceed the
Class M-5 Certificate Principal Balance.

     Class M-5 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-5 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-5 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-5 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class M-6 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-6 Certificates.

     Class M-6 Certificate: Any Certificate designated as a "Class M-6
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class M-6 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-6 Certificates.

                                      -35-

<PAGE>

     Class M-6 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-6 Pass-Through Rate on
the Class M-6 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class M-6
Current Interest or a Class M-6 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class M-6
Certificates.

     Class M-6 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-6 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-6 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class M-6 Pass-Through Rate for the
related Accrual Period.

     Class M-6 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 1.7500% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 2.6250% per annum.

     Class M-6 Pass-Through Rate: For the first Distribution Date, 7.070% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-6 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-6 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance, Class M-2 Certificate Principal Balance,
Class M-3 Certificate Principal Balance, Class M-4 Certificate Principal Balance
and Class M-5 Certificate Principal Balance have been reduced to zero and a
Stepdown Trigger Event exists, or as long as a Stepdown Trigger Event does not
exist, the excess of (1) the sum of (A) the Class A Certificate Principal
Balance (after taking into account distributions of the Class A Principal
Distribution Amount on such Distribution Date), (B) the Class M-1 Certificate
Principal Balance (after taking into account distributions of the Class M-1
Principal Distribution Amount on such Distribution Date), (C) the Class M-2
Certificate Principal Balance (after taking into account distributions of the
Class M-2 Principal Distribution Amount on such Distribution Date), (D) the
Class M-3 Certificate Principal Balance (after taking into account distributions
of the Class M-3 Principal Distribution Amount on such Distribution Date), (E)
the Class M-4 Certificate Principal Balance (after taking into account
distributions of the Class M-4 Principal Distribution Amount on such
Distribution Date), (F) the Class M-5 Certificate Principal Balance (after
taking into account distributions of the Class M-5 Principal Distribution Amount
on such Distribution Date), and (G) the Class M-6 Certificate Principal Balance
immediately prior to such Distribution Date over (2) the lesser of (A) 87.30% of
the Stated Principal Balances of the Mortgage Loans as of such Distribution Date
and (B) the excess of the Stated Principal Balances for the Mortgage Loans as of
such Distribution Date over the Minimum Required Overcollateralization Amount.
Notwithstanding the foregoing, (I) on any Distribution Date prior to the
Stepdown Date on which the Certificate Principal Balance of each Class of Class
A Certificates, the Class M-1 Certificates, the Class M-2 Certificates, the
Class M-3 Certificates, the Class M-4 Certificates and the Class M-5
Certificates has been reduced to zero, the Class M-6 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class M-6 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A, Class M-1, Class M-2,
Class M-

                                      -36-

<PAGE>

3, Class M-4 and Class M-5 Certificates and (II) in no event will the Class M-6
Principal Distribution Amount with respect to any Distribution Date exceed the
Class M-6 Certificate Principal Balance.

     Class M-6 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-6 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-6 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-6 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class P Certificate: Any Certificate designated as a Class P Certificate on
the face thereof, executed by the Trustee and authenticated by the
Authenticating Agent in substantially the form set forth in Exhibit A,
representing the right to distributions as set forth herein.

     Class Payment Shortfall: As defined in Section 2.07(d)(ii) herein.

     Class R Certificate: The Class R Certificate executed by the Trustee and
authenticated by the Authenticating Agent in substantially the form set forth in
Exhibit A.

     Class R Certificate Principal Balance: As of any date of determination, the
aggregate Certificate Principal Balance of the Class R Certificate.

     Class R Current Interest: As of any Distribution Date, the interest accrued
during the related Accrual Period at the Class R Pass-Through Rate on the Class
R Certificate Principal Balance as of such Distribution Date plus the portion of
any previous distributions on such Class in respect of Class R Current Interest
or a Class R Interest Carry Forward Amount that is recovered as a voidable
preference by a trustee in bankruptcy, less any Non-Supported Interest Shortfall
allocated on such Distribution Date to the Class R Certificate. For purposes of
calculating interest, principal distributions on a Distribution Date will be
deemed to have been made on the first day of the Accrual Period in which such
Distribution Date occurs.

     Class R Interest Carry Forward Amount: As of any Distribution Date, the sum
of (1) the excess of (A) the Class R Current Interest with respect to prior
Distribution Dates over (B) the amount actually distributed to the Class R
Certificate with respect to Current Interest or Interest Carry Forward Amounts
on such prior Distribution Dates and (2) interest on such excess (to the extent
permitted by applicable law) at the Class R Pass-Through Rate for the related
Accrual Period.

     Class R Margin: As of any Distribution Date up to and including the Initial
Optional Termination Date, 0.1400% per annum and, as of any Distribution Date
after the Initial Optional Termination Date, 0.2800% per annum.

     Class R Pass-Through Rate: For the first Distribution Date, 5.460% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class R Margin, (2) the Class A-1 Available Funds Cap for such
Distribution Date and (3) the Class A-1 Maximum Rate Cap for such Distribution
Date.

     Class SWR Interest: The sole class of "residual interest" in the SWAP
REMIC.

     Closing Date: April 26, 2007.

                                      -37-

<PAGE>

     Code: The Internal Revenue Code of 1986, including any successor or
amendatory provisions.

     Collection Account: The separate Eligible Accounts created and initially
maintained by the Servicer pursuant to Section 3.05(d) in the name of the
Trustee for the benefit of the Certificateholders and designated, "Home Loan
Services, Inc., as servicer for LaSalle Bank National Association, as trustee,
in trust for registered holders of Merrill Lynch First Franklin Mortgage Loan
Trust, Mortgage Loan Asset-Backed Certificates, Series 2007-2". Funds in the
Collection Account shall be held in trust for the Certificateholders for the
uses and purposes set forth in this Agreement.

     Commission: The Securities and Exchange Commission.

     Compensating Interest: For any Distribution Date and all Principal
Prepayments in full in respect of a Mortgage Loan that are received during the
period from the first day of the related Prepayment Period through the last day
of the calendar month preceding such Distribution Date, a payment made by the
Servicer in an amount not to exceed the product of (a) one-twelfth of 0.25% and
(b) the aggregate Stated Principal Balance of the Mortgage Loans for such
Distribution Date, equal to the amount of interest at the Net Mortgage Rate for
that Mortgage Loan from the date of prepayment through the 30th day of such
preceding calendar month; provided that any month consisting of less than 30
days shall be deemed to consist of 30 days.

     Corresponding Certificates: With respect to the Class LTA-1 Interest, the
Class A-1 and Class R Certificates. With respect to the Class LTA-2A Interest,
the Class A-2A Certificates. With respect to the Class LTA-2B Interest, the
Class A-2B Certificates. With respect to the Class LTA-2C Interest, the Class
A-2C Certificates. With respect to the Class LTA-2D Interest, the Class A-2D
Certificates. With respect to the Class LTM-1 Interest, the Class M-1
Certificates. With respect to the Class LTM-2 Interest, the Class M-2
Certificates. With respect to the Class LTM-3 Interest, the Class M-3
Certificates. With respect to the Class LTM-4 Interest, the Class M-4
Certificates. With respect to the Class LTM-5 Interest, the Class M-5
Certificates. With respect to the Class LTM-6 Interest, the Class M-6
Certificates. With respect to the Class LTB-1 Interest, the Class B-1
Certificates. With respect to the Class LTB-2 Interest, the Class B-2
Certificates. With respect to the Class LTB-3 Interest, the Class B-3
Certificates.

     Corresponding REMIC Regular Interest: For each Class of Certificates, the
interest in the Upper Tier REMIC listed on the same row in the table entitled
"Upper Tier REMIC" in the Preliminary Statement.

     Corridor Contract: Any of the Class A-1 Corridor Contract, the Class A-2
Corridor Contract or the Subordinate Certificate Corridor Contract.

     Corridor Contract Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 4.04(k)(i) in the name of the
Trustee for the benefit of the Issuing Entity and designated "LaSalle Bank
National Association, as trustee, in trust for registered holders of Merrill
Lynch First Franklin Mortgage Loan Trust, Mortgage Loan Asset-Backed
Certificates, Series 2007-2." Funds in the Corridor Contract Account shall be
held in trust for the Issuing Entity for the uses and purposes set forth in this
Agreement.

     Corridor Contract Notional Balance: Any of the Class A-1 Corridor Contract
Notional Balance, the Class A-2 Corridor Contract Notional Balance or the
Subordinate Certificate Corridor Contract Notional Balance.

                                      -38-

<PAGE>

     Corridor Contract Termination Date: Any of the Class A-1 Corridor Contract
Termination Date, the Class A-2 Corridor Contract Termination Date or the
Subordinate Certificate Corridor Contract Termination Date.

     Corridor Posted Collateral Account: The segregated Eligible Account created
and maintained by the Trustee pursuant to Section 4.04(k)(iv) in the name of the
Trustee for the benefit of the Issuing Entity and designated "LaSalle Bank
National Association, as trustee, in trust for registered holders of Merrill
Lynch First Franklin Mortgage Loan Trust, Mortgage Loan Asset-Backed
Certificates, Series 2007-2." Funds in the Corridor Posted Collateral Account
shall be held in trust for the Issuing Entity for the uses and purposes set
forth in the Corridor Contracts.

     Current Interest: Any of the Class A-1 Current Interest, the Class A-2A
Current Interest, the Class A-2B Current Interest, the Class A-2C Current
Interest, the Class A-2D Current Interest, the Class R Current Interest, the
Class M-1 Current Interest, the Class M-2 Current Interest, the Class M-3
Current Interest, the Class M-4 Current Interest, the Class M-5 Current
Interest, the Class M-6 Current Interest, the Class B-1 Current Interest, the
Class B-2 Current Interest, the Class B-3 Current Interest and the Class C
Current Interest.

     Cut-off Date: April 1, 2007.

     Cut-off Date Principal Balance: As to any Mortgage Loan, the unpaid
principal balance thereof as of the close of business on the calendar day
immediately preceding the Cut-off Date after application of all payments of
principal due on or prior to the Cut-off Date, whether or not received, and all
Principal Prepayments received prior to the Cut-off Date, but without giving
effect to any installments of principal received in respect of Due Dates after
the Cut-off Date.

     Defaulted Swap Termination Payment: Any payment required to be made by the
Supplemental Interest Trust to the Swap Counterparty pursuant to the Swap
Agreement as a result of an event of default under the Swap Agreement with
respect to which the Swap Counterparty is the defaulting party or a termination
event under that agreement (other than illegality or a tax event) with respect
to which the Swap Counterparty is the sole Affected Party (as defined in the
Swap Agreement).

     Definitive Certificates: As defined in Section 5.06.

     Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced by a
Replacement Mortgage Loan.

     Delinquent: A Mortgage Loan is "delinquent" if any payment due thereon is
not made pursuant to the terms of such Mortgage Loan by the close of business on
the day such payment is scheduled to be due. A Mortgage Loan is "30 days
delinquent" if such payment has not been received by the close of business on
the corresponding day of the month immediately succeeding the month in which
such payment was due, or, if there is no such corresponding day (e.g., as when a
30-day month follows a 31-day month in which a payment was due on the 31st day
of such month), then on the last day of such immediately succeeding month. With
respect to any Mortgage Loan due on any day other than the first day of the
month, such Mortgage Loan shall be deemed to be due on the first day of the
immediately succeeding month. Similarly for "60 days delinquent," "90 days
delinquent" and so on.

                                      -39-

<PAGE>

     Denomination: With respect to each Certificate, the amount set forth on the
face thereof as the "Initial Principal Balance of this Certificate."

     Depositor: Merrill Lynch Mortgage Investors, Inc., a Delaware corporation,
or any successor in interest.

     Depository: The initial Depository shall be The Depository Trust Company
("DTC"), the nominee of which is Cede & Co., or any other organization
registered as a "clearing agency" pursuant to Section 17A of the Securities
Exchange Act of 1934, as amended. The Depository shall initially be the
registered Holder of the Book-Entry Certificates. The Depository shall at all
times be a "clearing corporation" as defined in Section 8-102(3) of the Uniform
Commercial Code of the State of New York.

     Depository Agreement: With respect to Classes of Book-Entry Certificates,
the agreement between the Trustee and the initial Depository.

     Depository Participant: A broker, dealer, bank or other financial
institution or other Person for whom from time to time a Depository effects
book-entry transfers and pledges of securities deposited with the Depository.

     Designated Transaction: A transaction in which the assets underlying the
Certificates consist of single-family residential, multi-family residential,
home equity, manufactured housing and/or commercial mortgage obligations that
are secured by single-family residential, multi-family residential, commercial
real property or leasehold interests therein.

     Determination Date: With respect to any Distribution Date, the 15th day of
the month of such Distribution Date or, if such 15th day is not a Business Day,
the immediately preceding Business Day.

     Disqualified Organization: (1) the United States, any state or political
subdivision thereof, any foreign government, any international organization, or
any agency or instrumentality of any of the foregoing, (2) any organization
(other than a cooperative described in Section 521 of the Code) which is exempt
from tax under Chapter 1 of Subtitle A of the Code unless such organization is
subject to the tax imposed by Section 511 of the Code and (3) any organization
described in Section 1381(a)(2)(C) of the Code.

     Distribution Date: The 25th day of each calendar month after the initial
issuance of the Certificates, or if such 25th day is not a Business Day, the
next succeeding Business Day, commencing in May 2007.

     Due Date: With respect to any Distribution Date and any Mortgage Loan, the
day during the related Due Period on which a Scheduled Payment is due.

     Due Period: With respect to any Distribution Date, the period beginning on
the second day of the calendar month preceding the calendar month in which such
Distribution Date occurs and ending on the first day of the month in which such
Distribution Date occurs.

     Eligible Account: An account that is (1) maintained with a depository
institution the long-term unsecured debt obligations of which are rated by each
Rating Agency in one of its two highest rating categories, or (2) maintained
with the corporate trust department of a bank which (A) has a rating of at

                                      -40-

<PAGE>

least Baa3 or P-3 by Moody's and (B) is either the Depositor or the corporate
trust department of a national banking association or banking corporation which
has a rating of at least A-1 by S&P and F1 by Fitch, or (iii) an account or
accounts the deposits in which are fully insured by the FDIC, or (iv) an account
or accounts, acceptable to each Rating Agency without reduction or withdrawal of
the rating of any Class of Certificates, as evidenced in writing, by a
depository institution in which such accounts are insured by the FDIC (to the
limit established by the FDIC), the uninsured deposits in which accounts are
otherwise secured such that, as evidenced by an Opinion of Counsel delivered to
and acceptable to the Trustee and each Rating Agency, the Certificateholders
have a claim with respect to the funds in such account and a perfected first
security interest against any collateral (which shall be limited to Permitted
Investments) securing such funds that is superior to claims of any other
depositors or creditors of the depository institution with which such account is
maintained, or (v) maintained at an eligible institution whose commercial paper,
short-term debt or other short-term deposits are rated at least A-1+ by S&P and
F-1+ by Fitch, or (vi) maintained with a federal or state chartered depository
institution the deposits in which are insured by the FDIC to the applicable
limits and the short-term unsecured debt obligations of which (or, in the case
of a depository institution that is a subsidiary of a holding company, the
short-term unsecured debt obligations of such holding company) are rated A-1 by
S&P, F-1 by Fitch and Prime-1 by Moody's (if rated by such rating agencies) at
the time any deposits are held on deposit therein, or (vii) a segregated trust
account or accounts maintained with the corporate trust department of a federal
or state chartered depository institution or trust company having capital and
surplus of not less than $50,000,000 or (viii) otherwise acceptable to each
Rating Agency, as evidenced by a letter from each Rating Agency to the Trustee.

     ERISA: The Employee Retirement Income Security Act of 1974, including any
successor or amendatory provisions.

     ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that would satisfy the requirements would
satisfy the requirements of Prohibited Transaction Exemption 90-29, Exemption
Application No. D-8012, 55 Fed. Reg. 21459 (1990), as amended, granted by the
United States Department of Labor (or any other applicable underwriter's
exemption granted to the Underwriter by the United States Department of Labor),
except, in relevant part, for the requirement that the certificates have
received a rating at the time of acquisition that is in one of the three (or
four, in the case of a "designated transaction") highest generic rating
categories by at least one of S&P, Moody's or Fitch.

     ERISA Restricted Certificates: The Class C Certificates and Class P
Certificates and any other Certificate, as long as the acquisition and holding
of such other Certificate is not covered by and exempt under any underwriter's
exemption granted by the United States Department of Labor.

     Escrow Account: As defined in Section 3.06 hereof.

     Event of Default: As defined in Section 7.01 hereof.

     Exception Report: As defined in Section 2.02 hereof.

     Excess Interest: On any Distribution Date, for each Class of the Class A,
Class M and Class B Certificates, the excess, if any, of (1) the amount of
interest such Class of Certificates is entitled to receive on such Distribution
Date over (2) the amount of interest such Class of Certificates would have been
entitled to receive on such Distribution Date at an interest rate equal to the
REMIC Pass-Through Rate.

                                      -41-

<PAGE>

     Excess Proceeds: With respect to any Liquidated Loan, any Liquidation
Proceeds that are in excess of the sum of (1) the unpaid principal balance of
such Liquidated Loan as of the date of such liquidation plus (2) interest at the
Mortgage Rate from the Due Date as to which interest was last paid or advanced
to Certificateholders (and not reimbursed to the Servicer) up to the Due Date in
the month in which such Liquidation Proceeds are required to be distributed on
the unpaid principal balance of such Liquidated Loan outstanding during each Due
Period as to which such interest was not paid or advanced.

     Exchange Act: The Securities Exchange Act of 1934, as amended.

     Extra Principal Distribution Amount: With respect to any Distribution Date,
(1) prior to the Stepdown Date, the excess of (A) the sum of (i) the Aggregate
Certificate Principal Balance immediately preceding such Distribution Date
reduced by the Principal Funds with respect to such Distribution Date and (ii)
$65,069,289.32 over (B) the Pool Stated Principal Balance of the Mortgage Loans
as of such Distribution Date and (2) on and after the Stepdown Date, (A) the sum
of (x) the Aggregate Certificate Principal Balance immediately preceding such
Distribution Date, reduced by the Principal Funds with respect to such
Distribution Date and (y) the greater of (a) 6.50% of the Pool Stated Principal
Balance of the Mortgage Loans and (b) the Minimum Required Overcollateralization
Amount less (B) the Pool Stated Principal Balance of the Mortgage Loans as of
such Distribution Date; provided, however, that if on any Distribution Date a
Stepdown Trigger Event is in effect, the Extra Principal Distribution Amount
will not be reduced to the applicable percentage of the then-current aggregate
Stated Principal Balance of the Mortgage Loans (and will remain fixed at the
applicable percentage of the aggregate Stated Principal Balance of the Mortgage
Loans as of the Due Date immediately prior to the Stepdown Trigger Event) until
the next Distribution Date on which the Stepdown Trigger Event is not in effect.

     Fannie Mae: A federally chartered and privately owned corporation organized
and existing under the Federal National Mortgage Association Charter Act, or any
successor thereto.

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

     FFFC: First Franklin Financial Corporation, or any successor thereto.

     Fitch: Fitch, Inc., or any successor in interest.

     Fixed Rate Mortgage Loan: A Mortgage Loan identified in the Mortgage Loan
Schedule as having a Mortgage Rate that is fixed.

     Floating Rate Certificate Carryover: With respect to a Distribution Date,
in the event that the Pass-Through Rate for a class of Class A, Class M or Class
B Certificates is based upon the related Available Funds Cap or the related
Maximum Rate Cap, the sum of (A) the excess of (1) the amount of interest that
such Class would have been entitled to receive on such Distribution Date had the
Pass-Through Rate for that Class not been calculated based on the related
Available Funds Cap or the related Maximum Rate Cap, up to but not exceeding the
greater of (a) the related Maximum Rate Cap or (b) the sum of (i) the related
Available Funds Cap and (ii) the product of (AA) a fraction, the numerator of
which is 360 and the denominator of which is the actual number of days in the
related Accrual Period and (BB) the sum of (x) the quotient obtained by dividing
(I) an amount equal to the proceeds, if any, payable under the related Corridor
Contract with respect to such Distribution Date by (II) the aggregate
Certificate Principal Balance of each of the Classes of Certificates to which
such Corridor Contract relates for such Distribution Date and (y) the quotient
obtained by dividing (I) an amount of any Net Swap Payments

                                      -42-

<PAGE>

owed by the Swap Counterparty for such Distribution Date by (II) the aggregate
Stated Principal Balance of the Mortgage Loans as of the immediately preceding
Distribution Date over (2) the amount of interest such Class was entitled to
receive on such Distribution Date based on the related Available Funds Cap;
together with (B) the unpaid portion of any such excess from prior Distribution
Dates (and interest accrued thereon at the then applicable Pass-Through Rate,
without giving effect to the related Available Funds Cap or the related Maximum
Rate Cap) and (C) any amount previously distributed with respect to Floating
Rate Certificate Carryover for such Class that is recovered as a voidable
preference by a trustee in bankruptcy.

     Freddie Mac: A corporate instrumentality of the United States created and
existing under Title III of the Emergency Home Finance Act of 1970, as amended,
or any successor thereto.

     Grantor Trusts: The grantor trusts described in Section 2.07 hereof.

     Gross Margin: The percentage set forth in the related Mortgage Note for
each of the Adjustable Rate Mortgage Loans which is to be added to the
applicable index for use in determining the Mortgage Rate on each Adjustment
Date, and which is set forth in the Mortgage Loan Schedule for each Adjustable
Rate Mortgage Loan.

     Group One: The portion of the Mortgage Pool identified as "Group One" in
the Prospectus Supplement.

     Group One Mortgage Loan: Any Mortgage Loan at any time identified in the
Mortgage Loan Schedule attached hereto as Exhibit B as a Group One Mortgage
Loan.

     Group One Net WAC:  The Net WAC of Group One.

     Group One Principal Distribution Amount: As of any Distribution Date, the
amount equal to the lesser of (i) the aggregate Certificate Principal Balance of
the Class A-1 and Class R Certificates and (ii) the product of (x) the Group One
Principal Distribution Percentage and (y) the Class A Principal Distribution
Amount; provided, however, that with respect to any Distribution Date on which
the Class A-1 and Class R Certificates are outstanding and the Certificate
Principal Balance of the Class A-2 Certificates has been reduced to zero, the
Group One Principal Distribution Amount will equal the Class A Principal
Distribution Amount.

     Group One Principal Distribution Percentage: With respect to any
Distribution Date, a fraction expressed as a percentage, the numerator of which
is the amount of Principal Funds received with respect to Mortgage Loans in
Group One and the denominator of which is the amount of Principal Funds received
from all of the Mortgage Loans in the mortgage pool.

     Group Two: The portion of the Mortgage Pool identified as "Group Two" in
the Prospectus Supplement.

     Group Two Mortgage Loan: Any Mortgage Loan at any time identified in the
Mortgage Loan Schedule attached hereto as Exhibit B as a Group Two Mortgage
Loan.

     Group Two Net WAC: The Net WAC of Group Two.

                                      -43-

<PAGE>

     Group Two Principal Distribution Amount: As of any Distribution Date, the
amount equal to the lesser of (i) the aggregate Certificate Principal Balance of
the Class A-2 Certificates and (ii) the product of (x) the Group Two Principal
Distribution Percentage and (y) the Class A Principal Distribution Amount;
provided, however, that (A) with respect to any Distribution Date on which the
Class A-2 Certificates are outstanding and the Certificate Principal Balances of
the Class A-1 and Class R Certificates is reduced to zero, the Group One
Principal Distribution Amount in excess of the amount necessary to reduce the
Certificate Principal Balance of the Class A-1 Certificates and Class R
Certificates to zero will be applied to increase the Group Two Principal
Distribution Amount and (B) with respect to any Distribution Date thereafter,
the Group Two Principal Distribution Amount will equal the Class A Principal
Distribution Amount.

     Group Two Principal Distribution Percentage: With respect to any
Distribution Date, a fraction expressed as a percentage, the numerator of which
is the amount of Principal Funds received with respect to Mortgage Loans in
Group Two and the denominator of which is the amount of Principal Funds received
from all of the Mortgage Loans in the mortgage pool.

     Indenture: An indenture relating to the issuance of the NIM Notes, which
may be guaranteed by the NIMs Insurer.

     Initial Adjustment Date: As to any Adjustable Rate Mortgage Loan, the first
Adjustment Date following the origination of such Mortgage Loan.

     Initial Certificate Principal Balance: With respect to any Certificate
(other than the Class P Certificates), the Certificate Principal Balance of such
Certificate or any predecessor Certificate on the Closing Date as set forth in
Section 5.01 hereof.

     Initial Mortgage Rate: As to each Mortgage Loan, the Mortgage Rate in
effect prior to the Initial Adjustment Date.

     Initial Optional Termination Date: The first Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans (or if such Mortgage
Loan is an REO Property, the fair market value of such REO Property) is equal to
or less than 10% of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date.

     Insurance Policy: With respect to any Mortgage Loan or the related
Mortgaged Property included in the Trust Fund, any insurance policy, including
all riders and endorsements thereto in effect with respect to such Mortgage Loan
or Mortgaged Property, including any replacement policy or policies for any
insurance policies.

     Insurance Proceeds: Proceeds paid in respect of a Mortgage Loan or the
related Mortgaged Property pursuant to any Insurance Policy or any other
insurance policy covering such Mortgage Loan or Mortgaged Property, to the
extent such proceeds are payable to the mortgagee under the Mortgage, the
Servicer or the Trustee under the deed of trust and are not applied to the
restoration of the related Mortgaged Property or released either to the
Mortgagor or to the holder of a senior lien on the related Mortgaged Property in
accordance with the procedures that the Servicer would follow in servicing
mortgage loans held for its own account, in each case other than any amount
included in such Insurance Proceeds in respect of Insured Expenses.

                                      -44-

<PAGE>

     Insured Expenses: Expenses covered by an Insurance Policy or any other
insurance policy with respect to a Mortgage Loan or the related Mortgaged
Property.

     Interest Carry Forward Amount: Any of the Class A-1 Interest Carry Forward
Amount, the Class A-2A Interest Carry Forward Amount, the Class A-2B Interest
Carry Forward Amount, the Class A-2C Interest Carry Forward Amount, the Class
A-2D Interest Carry Forward Amount, the Class R Interest Carry Forward Amount,
the Class M-1 Interest Carry Forward Amount, the Class M-2 Interest Carry
Forward Amount, the Class M-3 Interest Carry Forward Amount, the Class M-4
Interest Carry Forward Amount, the Class M-5 Interest Carry Forward Amount, the
Class M-6 Interest Carry Forward Amount, the Class B-1 Interest Carry Forward
Amount, the Class B-2 Interest Carry Forward Amount, the Class B-3 Interest
Carry Forward Amount, or the Class C Interest Carry Forward Amount, as the case
may be.

     Interest Determination Date: With respect to the LIBOR Certificates, (i)
for any Accrual Period other than the first Accrual Period, the second LIBOR
Business Day preceding the commencement of such Accrual Period and (ii) for the
first Accrual Period, April 24, 2007.

     Interest Funds: With respect to any Distribution Date, the sum, without
duplication, of (1) all scheduled interest due during the related Due Period and
received before the related Servicer Remittance Date less the Servicing Fee, (2)
all Advances relating to interest with respect to the Mortgage Loans, (3) all
Compensating Interest with respect to the Mortgage Loans, (4) Liquidation
Proceeds with respect to the Mortgage Loans (to the extent such Liquidation
Proceeds relate to interest) collected during the related Prepayment Period
relating to Principal Prepayments in full and during the preceding calendar
month relating to Principal Prepayments in part, (5) all proceeds of any
purchase pursuant to Section 2.02 or 2.03 during the related Prepayment Period
or pursuant to Section 9.01 not later than the related Determination Date (to
the extent that such proceeds relate to interest) less the Servicing Fee and (6)
all Prepayment Charges received with respect to the Mortgage Loans during the
related Prepayment Period relating to Principal Prepayments in full and during
the preceding calendar month relating to Principal Prepayments in part, less (A)
all Non-Recoverable Advances relating to interest and (B) other amounts
reimbursable (including without limitation indemnity payments) to the Servicer
and the Trustee pursuant to this Agreement allocable to interest.

     Issuing Entity: Merrill Lynch First Franklin Mortgage Loan Trust, Series
2007-2.

     Latest Possible Maturity Date: The latest maturity date for any Mortgage
Loan in the Trust Fund plus one month.

     LIBOR Business Day: Any day on which banks in the City of London, England,
Chicago, Illinois and New York City, U.S.A. are open and conducting transactions
in foreign currency and exchange.

     LIBOR Certificates: The Class A, Class M and Class B Certificates.

     Liquidated Loan: With respect to any Distribution Date, a defaulted
Mortgage Loan that either (a) pursuant to Section 3.12 has been realized upon or
liquidated through deed-in-lieu of foreclosure, foreclosure sale, trustee's sale
or other realization as provided by applicable law governing the real property
subject to the related Mortgage and any security agreements and as to which the
Servicer has certified (in accordance with Section 3.12) in the related
Prepayment Period that it has received all amounts it expects to receive in
connection with such liquidation or (b) as to which is not a first lien

                                      -45-

<PAGE>

Mortgage Loan and is delinquent 180 days or longer, the Servicer has certified
in a certificate of an officer of the Servicer delivered to the Depositor and
the Trustee that it does not believe that there is a reasonable likelihood that
any further net proceeds will be received or recovered with respect to such
Mortgage Loan.

     Liquidation Proceeds: Amounts, including Insurance Proceeds, received in
connection with the partial or complete liquidation of Mortgage Loans, whether
through trustee's sale, foreclosure sale, sale by the Servicer pursuant to this
Agreement or otherwise or amounts received in connection with any condemnation
or partial release of a Mortgaged Property and any other proceeds received in
connection with an REO Property, less the sum of related unreimbursed Advances,
Servicing Fees, Servicing Advances and any other expenses related to such
Mortgage Loan.

     Loan-to-Value Ratio: With respect to any Mortgage Loan, the fraction,
expressed as a percentage, the numerator of which is the original principal
balance of the related Mortgage Loan and the denominator of which is the lesser
of (X) the Appraised Value of the related Mortgaged Property and (Y) the sales
price of the related Mortgaged Property at the time of origination.

     Losses: Any losses, claims, damages, liabilities or expenses collectively.

     Lower Tier REMIC: As described in the Preliminary Statement and Section
2.07.

     Lower Tier REMIC Interests: Each of the Class LTA-1 Interest, the Class
LTA-2A Interest, the Class LTA-2B Interest, the Class LTA-2C Interest, the Class
LTA-2D Interest, the Class LTM-1 Interest, the Class LTM-2 Interest, the Class
LTM-3 Interest, the Class LTM-4 Interest, the Class LTM-5 Interest, the Class
LTM-6 Interest, the Class LTB-1 Interest, the Class LTB-2 Interest, the Class
LTB-3 Interest, the Class LTIX Interest, the Class LTIIX Interest, the Class
LTII1A Interest, the Class LTII1B Interest, the Class LTII2A Interest, the Class
LTII2B Interest, the Class LT-IO Interest and the Class LTR Interest.

     Lower Tier REMIC I Marker Interests: Each of the classes of Lower Tier
REMIC Regular Interests other than the Class LTIX Interest, the Class LTIIX
Interest, the Class LTII1A Interest, the Class LTII1B Interest, the Class LTII2A
Interest, the Class LTII2B Interest and the Class LT-IO Interest.

     Lower Tier REMIC II Marker Interests: Each of the Class LTII1A Interest,
the Class LTII1B Interest, the Class LTII2A Interest and the Class LTII2B
Interest.

     Lower Tier REMIC Regular Interests: Each of the Lower Tier REMIC Interests
other than the Class LTR Interest.

     Lower Tier REMIC Subordinated Balance Ratio: The ratio of (i) the principal
balance of the Class LTII1A Interest to (ii) the principal balance of the Class
LTII2A Interest that is equal to the ratio of (i) the excess of (A) the
aggregate Stated Principal Balance of Group One over (B) the current Certificate
Principal Balance of the Class A-1 and Class R Certificates to (ii) the excess
of (A) the aggregate Stated Principal Balance of Group Two over (B) the current
Certificate Principal Balance of the Class A-2 Certificates.

     Maximum Mortgage Rate: With respect to each Adjustable Rate Mortgage Loan,
the maximum rate of interest set forth as such in the related Mortgage Note and
with respect to each Fixed Rate Mortgage Loan, the rate of interest set forth in
the related Mortgage Note.

                                      -46-

<PAGE>

     Maximum Rate Cap: Any of the Class A-1 Maximum Rate Cap, the Class A-2
Maximum Rate Cap or the Weighted Average Maximum Rate Cap.

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

     MERS Loan: Any Mortgage Loan registered with MERS on the MERS System.

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

     MIN: The loan number for any MERS Loan.

     Minimum Mortgage Rate: With respect to each Adjustable Rate Mortgage Loan,
the minimum rate of interest set forth as such in the related Mortgage Note.

     Minimum Required Overcollateralization Amount: An amount equal to the
product of (x) 0.50% and (y) the Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date.

     MOM Loan: Any Mortgage Loan as to which MERS is acting as mortgagee, solely
as nominee for the originator of such Mortgage Loan and its successors and
assigns.

     Monthly Statement: The statement delivered to the Certificateholders
pursuant to Section 4.05.

     Moody's: Moody's Investors Service, Inc. or any successor in interest.

     Mortgage: With respect to a Mortgage Loan, the mortgage, deed of trust or
other instrument with all riders thereto creating a first lien or a first
priority ownership interest in an estate in fee simple in real property securing
a Mortgage Note.

     Mortgage File: The mortgage documents listed in Section 2.01 hereof
pertaining to a particular Mortgage Loan and any additional documents delivered
to the Trustee to be added to the Mortgage File pursuant to this Agreement.

     Mortgage Group: Either of Group One or Group Two.

     Mortgage Loan Schedule: The list of Mortgage Loans (as from time to time
amended by the Trustee to reflect the deletion of Deleted Mortgage Loans and the
addition of Replacement Mortgage Loans pursuant to the provisions of this
Agreement) transferred to the Trustee as part of the Trust Fund and from time to
time subject to this Agreement, attached hereto as Exhibit B, setting forth the
following information with respect to each Mortgage Loan:

     (i)  the loan number;

     (ii) the borrower's name and address;

     (iii) the unpaid principal balance of the Mortgage Loans;

     (iv) the Initial Mortgage Rate;

                                      -47-

<PAGE>

     (v)  the original maturity date and the months remaining before maturity
          date;

     (vi) the original principal balance;

     (vii) the Cut-off Date Principal Balance;

     (viii) the first payment due date of the Mortgage Loan;

     (ix) the Loan-to-Value Ratio at origination with respect to a Mortgage
          Loan;

     (x)  a code indicating whether the residential dwelling at the time of
          origination was represented to be owner-occupied;

     (xi) a code indicating the property type;

     (xii) with respect to each Adjustable Rate Mortgage Loan;

          (A)  the frequency of each Adjustment Date;

          (B)  the next Adjustment Date;

          (C)  the Maximum Mortgage Rate;

          (D)  the Minimum Mortgage Rate;

          (E)  the Mortgage Rate as of the Cut-off Date;

          (F)  the related Periodic Rate Cap;

          (G)  the Gross Margin; and

          (H)  the lifetime rate cap;

     (xiii) the location of the related Mortgaged Property;

     (xiv) a code indicating whether a Prepayment Charge is applicable;

          (A)  the period during which such Prepayment Charge is in effect;

          (B)  the amount of such Prepayment Charge;

          (C)  any limitations or other conditions on the enforceability of such
               Prepayment Charge; and

          (D)  any other information pertaining to the Prepayment Charge
               specified in the related Mortgage Note;

     (xv) the Credit Score and date obtained; and

                                      -48-

<PAGE>

     (xvi) the MIN.

     Mortgage Loans: Such of the mortgage loans transferred and assigned to the
Trustee pursuant to the provisions hereof as from time to time are held as a
part of the Trust Fund (including any REO Property), the mortgage loans so held
being identified in the Mortgage Loan Schedule, notwithstanding foreclosure or
other acquisition of title of the related Mortgaged Property. Any mortgage loan
that was intended by the parties hereto to be transferred to the Trust Fund as
indicated by such Mortgage Loan Schedule which is in fact not so transferred for
any reason shall continue to be a Mortgage Loan hereunder until the Purchase
Price with respect thereto has been paid to the Trust Fund.

     Mortgage Note: The original executed note or other evidence of indebtedness
evidencing the indebtedness of a Mortgagor under a Mortgage Loan and all
amendments, modifications and attachments thereto with all riders attached
thereto.

     Mortgage Pool: The aggregate of the Mortgage Loans identified in the
Mortgage Loan Schedule.

     Mortgage Rate: The annual rate of interest borne by a Mortgage Note from
time to time.

     Mortgaged Property: The underlying property securing a Mortgage Loan.

     Mortgagor: The obligor on a Mortgage Note.

     Net Mortgage Rate: As to each Mortgage Loan, and at any time, the per annum
rate equal to the then current Mortgage Rate less the Servicing Fee Rate.

     Net Rate: The per annum rate set forth in footnote 8 to the description of
the Lower Tier REMIC in the Preliminary Statement hereto (such rate being based
on the weighted average of the interest rates on the SWAP REMIC Regular
Interests as adjusted and as set forth in such footnote).

     Net Swap Payment: With respect to any Distribution Date, any net payment
(other than a Swap Termination Payment or Defaulted Swap Termination Payment)
made by the Supplemental Interest Trust to the Swap Counterparty on the related
Fixed Rate Payer Payment Date (as defined in the Swap Agreement) or made by the
Swap Counterparty to the Supplemental Interest Trust on the related Floating
Rate Payer Payment Date (as defined in the Swap Agreement). In each case, the
Net Swap Payment shall not be less than zero.

     Net WAC: With respect to any Distribution Date and for any Mortgage Group,
the weighted average Net Mortgage Rate for the Mortgage Loans in such Mortgage
Group calculated based on the respective Net Mortgage Rates and the Stated
Principal Balances of such Mortgage Loans as of the preceding Distribution Date
(or, in the case of the first Distribution Date, as of the Cut-off Date).

     NIMs Insurer: Any of the one or more insurers, if any, that may be
guaranteeing certain payments under any NIM Notes; provided, that upon the
payment in full of the NIM Notes, all rights of the NIMs Insurer hereunder shall
terminate.

     NIM Notes: The net interest margin or excess cashflow securities to be
issued pursuant to any Indenture.

     NIMs Insurer Default: As defined in Section 10.13.

                                      -49-

<PAGE>

     Non-Recoverable Advance: Any portion of an Advance previously made or
proposed to be made by the Servicer that, in the good faith judgment of the
Servicer, will not or, in the case of a current delinquency, would not, be
ultimately recoverable by the Servicer from the related Mortgagor, related
Liquidation Proceeds or otherwise related to the Mortgage Loans.

     Non-Recoverable Servicing Advance: Any portion of a Servicing Advance
previously made or proposed to be made by the Servicer that, in the good faith
judgment of the Servicer, will not or, in the case of a current Servicing
Advance, would not, be ultimately recoverable by the Servicer from the related
Mortgagor, related Liquidation Proceeds or otherwise related to the Mortgage
Loans.

     Non-Supported Interest Shortfall: As defined in Section 4.02.

     Offered Certificates: The Class A, Class M, and Class B Certificates.

     Officer's Certificate: A certificate (1) signed by the Chairman of the
Board, the Vice Chairman of the Board, the President, a vice president (however
denominated), an Assistant Vice President, the Treasurer, the Secretary, or one
of the assistant treasurers or assistant secretaries of the Depositor, or
Trustee, the Servicer (or any other officer customarily performing functions
similar to those performed by any of the above designated officers and to whom,
with respect to a particular matter, such matter is referred because of such
officer's knowledge of and familiarity with a particular subject) or (2), if
provided for in this Agreement, signed by a Servicing Officer, as the case may
be, and delivered to the Depositor, the Servicer or the Trustee, as the case may
be, as required by this Agreement.

     One-Month LIBOR: With respect to any Accrual Period, the rate determined by
the Trustee on the related Interest Determination Date on the basis of (a) the
offered rates for one-month United States dollar deposits from Reuters, as of
11:00 a.m. (London time) on such Interest Determination Date (or if such service
is no longer offered, such other service for displaying LIBOR or comparable
rates as may be reasonably selected by the Trustee) or (b) if such rate does not
appear on Reuters as of 11:00 a.m. (London time), the Trustee will determine
such rate on the basis of the offered rates of the Reference Banks for one-month
United States dollar deposits, as such rates appear on the Reuters Screen LIBO
Page, as of 11:00 a.m. (London time) on such Interest Determination Date. If
One-Month LIBOR is determined pursuant to clause (b) above, on each Interest
Determination Date, One-Month LIBOR for the related Accrual Period will be
established by the Trustee as follows:

          (i)  If on such Interest Determination Date two or more Reference
               Banks provide such offered quotations, One-Month LIBOR for the
               related Accrual Period shall be the arithmetic mean of such
               offered quotations (rounded upwards if necessary to the nearest
               whole multiple of 0.03125%).

          (ii) If on such Interest Determination Date fewer than two Reference
               Banks provide such offered quotations, One-Month LIBOR for the
               related Accrual Period shall be the higher of (i) One-Month LIBOR
               as determined on the previous Interest Determination Date and
               (ii) the Reserve Interest Rate.

     Opinion of Counsel: A written opinion of counsel, who may be counsel for
the Depositor or the Servicer reasonably acceptable to each addressee of such
opinion; provided, however, that with respect to Section 6.04 or 10.01, or the
interpretation or application of the REMIC Provisions, such counsel must (1) in
fact be independent of the Depositor and the Servicer, (2) not have any direct
financial interest in the

                                      -50-

<PAGE>

Depositor or the Servicer or in any Affiliate of either such party, and (3) not
be connected with the Depositor or the Servicer as an officer, employee,
promoter, underwriter, trustee, partner, director or person performing similar
functions.

     Optional Termination: The termination of the Trust Fund hereunder pursuant
to clause (a) of Section 9.01 hereof.

     Optional Termination Amount: The repurchase price received by the Trustee
in connection with any repurchase of all of the Mortgage Loans pursuant to
Section 9.01.

     Optional Termination Price: On any date after the Initial Optional
Termination Date an amount equal to the sum of (i) the then aggregate
outstanding Stated Principal Balance of the Mortgage Loans (or, if such Mortgage
Loan is an REO Property, the fair market value of such REO Property) plus
accrued interest thereon at the applicable Mortgage Rate through the Due Date in
the month in which the proceeds of the auction will be distributed on the
Certificates; (ii) any unreimbursed indemnity amounts, fees or out-of-pocket
costs and expenses owed to the Trustee (including any amounts incurred by the
Trustee in connection with conducting such auction) or the Servicer and all
unreimbursed Advances and Servicing Advances, in each case incurred by such
party in the performance of its obligations; (iii) any unreimbursed costs,
penalties and/or damages incurred by the Trust Fund in connection with any
violation relating to any of the Mortgage Loans of any predatory or abusive
lending law; and (iv) any unpaid Net Swap Payments and any Swap Termination
Payment owed to the Swap Counterparty; such Swap Termination Payment shall
include any payment to the Swap Counterparty resulting from the optional
termination of the Swap Agreement after the Optional Termination Date but prior
to the final distribution to the Certificates.

     OTS: The Office of Thrift Supervision.

     Outstanding: With respect to the Certificates as of any date of
determination, all Certificates theretofore executed and authenticated under
this Agreement except: (1) Certificates theretofore canceled by the Trustee or
delivered to the Trustee for cancellation; and (2) Certificates in exchange for
which or in lieu of which other Certificates have been executed by the Trustee
and delivered by the Trustee pursuant to this Agreement.

     Outstanding Mortgage Loan: As of any Distribution Date, a Mortgage Loan
with a Stated Principal Balance greater than zero that was not the subject of a
Principal Prepayment in full, and that did not become a Liquidated Loan, prior
to the end of the related Due Period.

     Overcollateralization Amount: As of any date of determination, the excess
of (1) the Stated Principal Balance of the Mortgage Loans over (2) the
Certificate Principal Balance of the Certificates (other than the Class P
Certificates and the Class C Certificates).

     Ownership Interest: As to any Certificate, any ownership interest in such
Certificate including any interest in such Certificate as the Holder thereof and
any other interest therein, whether direct or indirect, legal or beneficial.

     Pass-Through Rate: With respect to any Class of Certificates, the
corresponding Pass-Through Rate for such Class of Certificates.

                                      -51-

<PAGE>

     Percentage Interest: With respect to:

          (i)  any Class, the percentage interest in the undivided beneficial
               ownership interest evidenced by such Class which shall be equal
               to the Certificate Principal Balance of such Class divided by the
               aggregate Certificate Principal Balance of all Classes; and

          (ii) any Certificate, the Percentage Interest evidenced thereby of the
               related Class shall equal the percentage obtained by dividing the
               Denomination of such Certificate by the aggregate of the
               Denominations of all Certificates of such Class; except that in
               the case of any Class P Certificates, the Percentage Interest
               with respect to such Certificate shown on the face of such
               Certificate.

     Periodic Rate Cap: As to each Adjustable Rate Mortgage Loan and the related
Mortgage Note, the provision therein that limits permissible increases and
decreases in the Mortgage Rate on any Adjustment Date.

     Permitted Activities: The primary activities of the Issuing Entity created
pursuant to this Agreement which shall be:

          (i)  holding Mortgage Loans transferred from the Depositor and other
               assets of the Issuing Entity, including the Corridor Contracts,
               Corridor Contract Account and the Supplemental Interest Trust
               subtrust, which in turn holds the Swap Agreement, and any credit
               enhancement and passive derivative financial instruments that
               pertain to beneficial interests issued or sold to parties other
               than the Depositor, its Affiliates, or its agents;

          (ii) issuing Certificates and other interests in the assets of the
               Issuing Entity;

          (iii) through the appropriate subtrust, as applicable, receiving
               collections on the Mortgage Loans, the Swap Agreement and making
               payments on such Certificates and interests in accordance with
               the terms of this Agreement; and

          (iv) engaging in other activities that are necessary or incidental to
               accomplish these limited purposes, which activities cannot be
               contrary to the status of the Issuing Entity as a qualified
               special purpose entity under existing accounting literature.

     Permitted Investments: At any time, any one or more of the following
obligations and securities:

          (i)  obligations of the United States or any agency thereof, provided
               the timely payment of such obligations is backed by the full
               faith and credit of the United States;

          (ii) general obligations of or obligations guaranteed by any state of
               the United States or the District of Columbia receiving the
               highest long-term debt rating of each Rating Agency rating the
               Certificates;

                                      -52-

<PAGE>

          (iii) commercial or finance company paper, other than commercial or
               finance company paper issued by the Depositor, the Trustee or any
               of their Affiliates, which is then receiving the highest
               commercial or finance company paper rating of each such Rating
               Agency;

          (iv) certificates of deposit, demand or time deposits, or bankers'
               acceptances (other than banker's acceptances issued by the
               Trustee or any of its Affiliates) issued by any depository
               institution or trust company incorporated under the laws of the
               United States or of any state thereof and subject to supervision
               and examination by federal and/or state banking authorities,
               provided that the commercial paper and/or long term unsecured
               debt obligations of such depository institution or trust company
               are then rated one of the two highest long-term and the highest
               short-term ratings of each such Rating Agency for such
               securities;

          (v)  demand or time deposits or certificates of deposit issued by any
               bank or trust company or savings institution to the extent that
               such deposits are fully insured by the FDIC;

          (vi) guaranteed reinvestment agreements issued by any bank, insurance
               company or other corporation rated in the two highest long-term
               or the highest short-term ratings of each Rating Agency
               containing, at the time of the issuance of such agreements, such
               terms and conditions as will not result in the downgrading or
               withdrawal of the rating then assigned to the Certificates by any
               such Rating Agency as evidenced by a letter from each Rating
               Agency;

          (vii) repurchase obligations with respect to any security described in
               clauses (i) and (ii) above, in either case entered into with a
               depository institution or trust company (acting as principal)
               described in clause (v) above;

          (viii) securities (other than stripped bonds, stripped coupons or
               instruments sold at a purchase price in excess of 115% of the
               face amount thereof) bearing interest or sold at a discount
               issued by any corporation, other than the Trustee or any of its
               Affiliates, incorporated under the laws of the United States or
               any state thereof which, at the time of such investment, have one
               of the two highest long term ratings of each Rating Agency;

          (ix) interests in any money market fund (including those managed or
               advised by the Trustee or its Affiliates), which at the date of
               acquisition of the interests in such fund and throughout the time
               such interests are held in such fund has the highest applicable
               long term rating by each Rating Agency rating such fund; and

          (x)  short term investment funds sponsored by any trust company or
               national banking association incorporated under the laws of the
               United States or any state thereof, other than the Trustee or any
               of its Affiliates, which on the date of acquisition has been
               rated by each such Rating Agency in their respective highest
               applicable rating category;

                                      -53-

<PAGE>

provided, that no such instrument shall be a Permitted Investment if such
instrument (i) evidences the right to receive interest only payments with
respect to the obligations underlying such instrument, (ii) is purchased at a
premium or above par or (iii) is purchased at a deep discount; provided,
further, that no such instrument shall be a Permitted Investment (A) if such
instrument evidences principal and interest payments derived from obligations
underlying such instrument and the interest payments with respect to such
instrument provide a yield to maturity of greater than 120% of the yield to
maturity at par of such underlying obligations, or (B) if it may be redeemed at
a price below the purchase price (the foregoing clause (B) not to apply to
investments in units of money market funds pursuant to clause (ix) above); and
provided, further, (I) that no amount beneficially owned by any REMIC
(including, without limitation, any amounts collected by the Servicer but not
yet deposited in the Collection Account) may be invested in investments (other
than money market funds) treated as equity interests for Federal income tax
purposes, unless the Servicer shall receive an Opinion of Counsel, at the
expense of the party requesting that such investment be made, to the effect that
such investment will not adversely affect the status of the any REMIC provided
for herein as a REMIC under the Code or result in imposition of a tax on the
Issuing Entity or any REMIC provided for herein and (II) each such investment
must be a "permitted investment" within the meaning of Section 860G(a)(5) of the
Code. Permitted Investments that are subject to prepayment or call may not be
purchased at a price in excess of par.

     Permitted Transferee: Any Person other than (i) the United States, any
State or political subdivision thereof, or any agency or instrumentality of any
of the foregoing, (ii) a foreign government, International Organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in Section 521 of the Code) that
is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed
by Section 511 of the Code on unrelated business taxable income) on any excess
inclusions (as defined in Section 860E(c)(1) of the Code) with respect to the
Class R Certificate, (iv) rural electric and telephone cooperatives described in
Section 1381(a)(2)(C) of the Code, and (v) a Person that is not a citizen or
resident of the United States, a corporation or partnership (or other entity
treated as a corporation or partnership for United States federal income tax
purposes) created or organized in or under the laws of the United States or any
State thereof or the District of Columbia or an estate whose income from sources
without the United States is includable in gross income for United States
federal income tax purposes regardless of its connection with the conduct of a
trade or business within the United States, or a trust if a court within the
United States is able to exercise primary supervision over the administration of
the trust and one or more United States persons have authority to control all
substantial decisions of the trust, unless, in the case of this clause (v), such
Person has furnished the transferor and the Trustee with a duly completed
Internal Revenue Service Form W-8ECI or applicable successor form. The terms
"United States," "State" and "International Organization" shall have the
meanings set forth in Section 7701 of the Code. A corporation will not be
treated as an instrumentality of the United States or of any State thereof for
these purposes if all of its activities are subject to tax and, with the
exception of the Federal Home Loan Mortgage Corporation, a majority of its board
of directors is not selected by such government unit.

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

     Pool Stated Principal Balance: As to any Distribution Date, the aggregate
of the Stated Principal Balances, as of such Distribution Date, of the Mortgage
Loans that were Outstanding Mortgage Loans as of such date.

                                      -54-

<PAGE>

     Posted Collateral: As defined in the Swap Agreement or the Corridor
Contracts, as applicable.

     Prepayment Assumption: A rate of prepayment, as described in the Prospectus
Supplement in the definition of "Modeling Assumptions," relating to the Offered
Certificates.

     Prepayment Charges: Any prepayment premium or charge payable by a Mortgagor
in connection with any Principal Prepayment on a Mortgage Loan pursuant to the
terms of the related Mortgage Note or Mortgage, as applicable.

     Prepayment Interest Excess: With respect to any Servicer Remittance Date,
for each Mortgage Loan that was the subject of a Principal Prepayment in full
during the portion of the related Prepayment Period occurring between the first
day of the calendar month in which such Servicer Remittance Date occurs and the
last day of the related Prepayment Period, an amount equal to interest (to the
extent received) at the applicable Net Mortgage Rate on the amount of such
Principal Prepayment for the number of days commencing on the first day of the
calendar month in which such Servicer Remittance Date occurs and ending on the
date on which such Principal Prepayment is so applied.

     Prepayment Interest Shortfall: With respect to any Distribution Date, for
each Mortgage Loan that was the subject of a Principal Prepayment in full (other
than a Principal Prepayment in full resulting from the purchase of a Mortgage
Loan pursuant to Section 2.02, 2.03 or 9.01 hereof and other than a Principal
Prepayment in full on a Mortgage Loan received during the period from and
including the first day to and including the 14th day of the month of such
Distribution Date), the amount, if any, by which (i) one month's interest at the
applicable Net Mortgage Rate on the Stated Principal Balance of such Mortgage
Loan as of the preceding Distribution Date exceeds (ii) the amount of interest
paid or collected in connection with such Principal Prepayment.

     Prepayment Period: With respect to any Distribution Date (i) with respect
to prepayments in full or any other payments received in connection with a
Principal Prepayment in full, the period beginning with the opening of business
on the 15th day of the calendar month preceding the month in which such
Distribution Date occurs (or in the case of the first Distribution Date,
beginning with the opening of business on the Cut-off Date) and ending on the
close of business on the 14th day of the month in which such Distribution Date
occurs and (ii) with respect to partial prepayments and any other payments
received in connection with a payment in part, the calendar month preceding the
month of such Distribution Date.

     Principal Distribution Amount: With respect to each Distribution Date, the
sum of (i) the Principal Funds for such Distribution Date and (ii) any Extra
Principal Distribution Amount for such Distribution Date.

     Principal Funds: With respect to the Mortgage Loans and any Distribution
Date, the sum, without duplication, of (1) the scheduled principal due during
the related Due Period and received before the related Servicer Remittance Date
or advanced on or before the related Servicer Remittance Date, (2) Principal
Prepayments in full collected in the related Prepayment Period, (3) the Stated
Principal Balance of each Mortgage Loan that was purchased by the Depositor or
the Servicer during the related Prepayment Period or, in the case of a purchase
pursuant to Section 9.01, on the Business Day prior to such Distribution Date,
(4) the amount, if any, by which the aggregate unpaid principal balance of any
Replacement Mortgage Loan is less than the aggregate unpaid principal of the
related Deleted Mortgage Loans delivered by the Sponsor in connection with a
substitution of a Mortgage Loan pursuant to Section

                                      -55-

<PAGE>

2.03(c), (5) all Liquidation Proceeds collected during the related Prepayment
Period (to the extent such Liquidation Proceeds relate to principal and
represent payment in full), (6) all Subsequent Recoveries received with regard
to the applicable Prepayment Period and (7) all other collections and recoveries
in respect of principal, including any partial prepayments of principal, with
regard to the applicable Prepayment Period, less (A) all Non-Recoverable
Advances relating to principal with respect to the Mortgage Loans and (B) other
amounts reimbursable (including without limitation indemnity payments) to the
Servicer and the Trustee pursuant to this Agreement allocable to principal.

     Principal Prepayment: Any Mortgagor payment or other recovery of (or
proceeds with respect to) principal on a Mortgage Loan (including Mortgage Loans
purchased or repurchased under Sections 2.02, 2.03 and 9.01 hereof) that is
received or recovered in advance of its scheduled Due Date and is not
accompanied by an amount as to interest representing scheduled interest due on
any date or dates in any month or months subsequent to the month of prepayment.
Partial Principal Prepayments shall be applied by the Servicer in accordance
with the terms of the related Mortgage Note.

     Prospectus Supplement: The Prospectus Supplement dated April 25, 2007,
relating to the public offering of the Offered Certificates.

     PUD: A Planned Unit Development.

     Purchase Agreement: The Mortgage Loan Purchase and Sale Agreement, dated as
of April 1, 2007, between the Depositor, as purchaser and the Sponsor, as
seller.

     Purchase Price: With respect to any Mortgage Loan required to be
repurchased by the Sponsor pursuant to Section 2.02 or 2.03 hereof, an amount
equal to the sum of (i) 100% of the unpaid principal balance of the Mortgage
Loan as of the date of such purchase together with any unreimbursed Servicing
Advances, (ii) accrued interest thereon at the applicable Mortgage Rate from (a)
the date through which interest was last paid by the Mortgagor to (b) the Due
Date in the month in which the Purchase Price is to be distributed to
Certificateholders and (iii) any unreimbursed costs, penalties and/or damages
incurred by the Issuing Entity in connection with any violation relating to such
Mortgage Loan of any predatory or abusive lending law.

     QIB: A "qualified institutional buyer" within the meaning of Rule 144A.

     Rating Agency: Either of S&P or Moody's. If any such organization or its
successor is no longer in existence, "Rating Agency" shall be a nationally
recognized statistical rating organization, or other comparable Person,
designated by the Depositor, notice of which designation shall be given to the
Trustee. References herein to a given rating category of a Rating Agency shall
mean such rating category without giving effect to any modifiers.

     Rating Agency Condition: As defined in the Swap Agreement.

     Realized Loss: With respect to (1) a Liquidated Loan, the amount, if any,
by which the Stated Principal Balance and accrued interest thereon at the Net
Mortgage Rate exceeds the amount actually recovered by the Servicer with respect
thereto (net of reimbursement of Advances and Servicing Advances) at the time
such Mortgage Loan became a Liquidated Loan or (2) with respect to a Mortgage
Loan which is not a Liquidated Loan, any amount of principal that the Mortgagor
is no longer legally

                                      -56-

<PAGE>

required to pay (except for the extinguishment of debt that results from the
exercise of remedies due to default by the Mortgagor).

     Record Date: With respect to the first Distribution Date, the Closing Date.
With respect to any other Distribution Date, the close of business on the last
Business Day of the month preceding the month in which the applicable
Distribution Date occurs.

     Reference Banks: Barclays Bank PLC, JPMorgan Chase Bank, N.A., Citibank,
N.A., Wells Fargo Bank, N.A. and NatWest, N.A.; provided that if any of the
foregoing banks are not suitable to serve as a Reference Bank, then any leading
banks selected by the Trustee, with the consent of the NIMs Insurer, which are
engaged in transactions in Eurodollar deposits in the international Eurocurrency
market (i) with an established place of business in London, England, (ii) whose
quotations appear on the Reuters Screen LIBO Page on the relevant Interest
Determination Date and (iii) which have been designated as such by the Servicer.

     Regular Certificate: Any one of the Class A, Class M and Class B
Certificates.

     Regulation AB: Subpart 229.1100 - Asset Backed Securities (Regulation AB),
17 C.F.R. Sections 229.1100-229.1123, as such may be amended from time to time,
and subject to such clarification and interpretation as have been provided by
the Commission in the adopting release (Asset-Backed Securities, Securities Act
Release No. 33-8518, 70 Fed Reg. 1,506, 1.531 (Jan. 7, 2005)) or by the staff of
the Commission, or as may be provided by the Commission or its staff from time
to time.

     Regulation S: Regulation S promulgated under the Securities Act or any
successor provision thereto, in each case as the same may be amended from time
to time; and all references to any rule, section or subsection of, or definition
or term contained in, Regulation S means such rule, section, subsection,
definition or term, as the case may be, or any successor thereto, in each case
as the same may be amended from time to time.

     Regulation S Book-Entry Certificates: Certificates sold in offshore
transactions in reliance on Regulation S in the form of one or more permanent
global Certificates in definitive, fully registered form without interest
coupons, which shall be deposited on behalf of the subscribers for such
Certificates represented thereby with the Trustee, as custodian for DTC and
registered in the name of a nominee of DTC.

     Related Certificates: For each interest in the Upper Tier REMIC, the Class
of Certificates listed on the same row in the table entitled "Upper Tier REMIC"
in the Preliminary Statement.

     Relief Act: The Servicemembers Civil Relief Act or any similar state or
local law.

     Relief Act Shortfall: With respect to any Distribution Date and any
Mortgage Loan, any reduction in the amount of interest or principal collectible
on such Mortgage Loan for the most recently ended calendar month as a result of
the application of the Relief Act.

     REMIC: A "real estate mortgage investment conduit" within the meaning of
section 860D of the Code. References herein to "the REMICs" or "a REMIC" shall
mean any of (or, as the context requires, all of) the SWAP REMIC, the Lower Tier
REMIC and the Upper Tier REMIC.

                                      -57-
<PAGE>

     REMIC Pass-Through Rate: In the case of a Class of the Class A, Class M and
Class B Certificates, the Upper Tier REMIC Net WAC Cap for the Corresponding
REMIC Regular Interest.

     REMIC Provisions: Provisions of the federal income tax law relating to real
estate mortgage investment conduits, which appear at sections 860A through 860G
of Subchapter M of Chapter 1 of the Code, and related provisions, and proposed,
temporary and final regulations and published rulings, notices and announcements
promulgated thereunder, as the foregoing may be in effect from time to time as
well as provisions of applicable state laws.

     REMIC Regular Interests: Each of the interests in the Upper Tier REMIC as
set forth in the Preliminary Statement other than the Residual Interest.

     REMIC SWAP Rate: For each Distribution Date (and the related Accrual
Period), a per annum rate equal to the Fixed Rate under the Swap Agreement for
such Distribution Date, as set forth in the Prospectus Supplement.

     Remittance Report: As defined in Section 4.04(j) hereof.

     REO Property: A Mortgaged Property acquired by the Servicer, on behalf of
the Trustee for the benefit of the Certificateholders, through foreclosure or
deed-in-lieu of foreclosure in connection with a defaulted Mortgage Loan.

     Replacement Mortgage Loan: One or more Mortgage Loans substituted by the
Depositor for a Deleted Mortgage Loan, which must, on the date of such
substitution, as confirmed in a Request for Release substantially in the form of
Exhibit I, (1) have a Stated Principal Balance (or in the case of a substitution
of more than one Mortgage Loan for a Deleted Mortgage Loan, an aggregate Stated
Principal Balance), after deduction of the principal portion of the Scheduled
Payment due in the month of substitution, not in excess of, and not less than
90% of the Stated Principal Balance of the Deleted Mortgage Loan; (2) with
respect to any Fixed Rate Mortgage Loan, have a Mortgage Rate not less than or
no more than 1% per annum higher than the Mortgage Rate of the Deleted Mortgage
Loan and, with respect to any Adjustable Rate Mortgage Loan: (A) have a Maximum
Mortgage Rate no more than 1% per annum higher or lower than the Maximum
Mortgage Rate of the Deleted Mortgage Loan; (B) have a Minimum Mortgage Rate no
more than 1% per annum higher or lower than the Minimum Mortgage Rate of the
Deleted Mortgage Loan; (C) have the same index and Periodic Rate Cap as that of
the Deleted Mortgage Loan and a Gross Margin not more than 1% per annum higher
or lower than that of the Deleted Mortgage Loan; (D) not permit conversion of
the related Mortgage Rate to a fixed Mortgage Rate and (F) currently be accruing
interest at a rate not more than 1% per annum higher or lower than that of the
Deleted Mortgage Loan; (3) have a similar or higher FICO score or credit grade
than that of the Deleted Mortgage Loan; (4) have a Loan-to-Value Ratio no higher
than that of the Deleted Mortgage Loan; (5) have a remaining term to maturity no
greater than (and not more than one year less than) that of the Deleted Mortgage
Loan; (6) provide for a Prepayment Charge on terms substantially similar to
those of the Prepayment Charge, if any, of the Deleted Mortgage Loan; (7) have
the same lien priority as the Deleted Mortgage Loan; (8) constitute the same
occupancy type as the Deleted Mortgage Loan; and (9) comply with each
representation and warranty set forth in Section 2.03 hereof.

     Request for Release: The Request for Release of Documents submitted by the
Servicer to the Trustee, substantially in the form of Exhibit I hereto.

                                      -58-

<PAGE>

     Required Insurance Policy: With respect to any Mortgage Loan, any insurance
policy that is required to be maintained from time to time under this Agreement.

     Required Percentage: As of any Distribution Date following the Stepdown
Date, the quotient of (1) the excess of (A) the aggregate Stated Principal
Balance of the Mortgage Loans as of the prior Distribution Date, over (B) the
Certificate Principal Balance of the most senior Class of Certificates
outstanding as of such Distribution Date, prior to giving effect to
distributions to be made on such Distribution Date and (2) the aggregate Stated
Principal Balance of the Mortgage Loans as of the prior Distribution Date, prior
to giving effect to distributions to be made on such Distribution Date. As used
herein, as long as any Class A Certificates are outstanding, the Certificate
Principal Balance of the most senior class of certificates will equal the
aggregate Certificate Principal Balance of all Class A Certificates outstanding
as of such date of calculation.

     Requirements: Any rules or regulations promulgated pursuant to the
Sarbanes-Oxley Act of 2002 (as such may be amended from time to time).

     Reserve Interest Rate: With respect to any Interest Determination Date, the
rate per annum that the Trustee determines to be (1) the arithmetic mean
(rounded upwards if necessary to the nearest whole multiple of 0.03125%) of the
one-month United States dollar lending rates which New York City banks selected
by the Trustee are quoting on the relevant Interest Determination Date to the
principal London offices of leading banks in the London interbank market or (2)
in the event that the Trustee can determine no such arithmetic mean, the lowest
one-month United States dollar lending rate which New York City banks selected
by the Trustee are quoting on such Interest Determination Date to leading
European banks.

     Residual Interest: An interest in the Upper Tier REMIC that is entitled to
all distributions of principal and interest on the Class R Certificate other
than distributions in respect of the Class SWR Interest and Class LTR Interest
and distributions on the Class R Certificate in respect of Excess Interest.

     Responsible Officer: When used with respect to the Trustee or the Servicer,
any officer of the Trustee or the Servicer with direct responsibility for the
administration of this Agreement and any other officer to whom, with respect to
a particular matter, such matter is referred because of such officer's knowledge
of and familiarity with the particular subject.

     Reuters Screen LIBO Page: The display designated as page "LIBO" on the
Reuters Monitor Money Rates Service (or such other page as may replace such LIBO
page on that service for the purpose of displaying London interbank offered
rates of major banks.

     S&P: Standard & Poor's, a division of The McGraw-Hill Companies, Inc., or
any successor in interest.

     Sarbanes-Oxley Certification: Has the meaning set forth in Section 3.20.

     Scheduled Payment: The scheduled monthly payment on a Mortgage Loan due on
any Due Date allocable to principal and/or interest on such Mortgage Loan.

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

     Servicer: Home Loan Services, Inc., or its successor in interest.

                                      -59-

<PAGE>

     Servicer Remittance Date: With respect to any Distribution Date, the later
of (x) the date that is two Business Days after the 15th day of the month in
which such Distribution Date occurs and (y) the 18th day (or if such day is not
a Business Day, the immediately succeeding Business Day) of the month in which
such Distribution Date occurs.

     Servicing Advances: All customary, reasonable and necessary "out of pocket"
costs and expenses incurred in the performance by the Servicer of its servicing
obligations hereunder, including, but not limited to, the cost of (1) the
preservation, inspection, restoration and protection of a Mortgaged Property,
including without limitation advances in respect of prior liens, real estate
taxes and assessments, (2) any collection, enforcement or judicial proceedings,
including without limitation foreclosures, collections and liquidations, (3) the
conservation, management, sale and liquidation of any REO Property, (4)
executing and recording instruments of satisfaction, deeds of reconveyance,
substitutions of trustees on deeds of trust or Assignments of Mortgage to the
extent not otherwise recovered from the related Mortgagors or payable under this
Agreement, (5) correcting errors of prior servicers; costs and expenses charged
to the Servicer by the Trustee; tax tracking; title research; flood
certifications; and lender paid mortgage insurance, (6) obtaining or correcting
any legal documentation required to be included in the Mortgage Files and
reasonably necessary for the Servicer to perform its obligations under this
Agreement and (7) compliance with the obligations under Sections 3.01 and 3.10.

     Servicing Criteria: The "servicing criteria" set forth in Item 1122(d) of
Regulation AB, as such may be amended from time to time.

     Servicing Fee: As to each Mortgage Loan and any Distribution Date, an
amount equal to the product of (x) the Servicing Fee Rate and (y) the Stated
Principal Balance of such Mortgage Loan as of the preceding Distribution Date
or, in the event of any payment of interest that accompanies a Principal
Prepayment in full made by the Mortgagor, interest at the Servicing Fee Rate on
the Stated Principal Balance of such Mortgage Loan as of the preceding
Distribution Date for the period covered by such payment of interest.

     Servicing Fee Rate: 0.50% per annum for each Mortgage Loan.

     Servicing Officer: Any officer of the Servicer involved in, or responsible
for, the administration and servicing of the Mortgage Loans whose name and
facsimile signature appear on a list of servicing officers furnished to the
Trustee by the Servicer on the Closing Date pursuant to this Agreement, as such
lists may from time to time be amended.

     Servicing Rights Pledgee: One or more lenders, selected by the Servicer, to
which the Servicer may pledge and assign all of its right, title and interest
in, to and under this Agreement.

     Servicing Transfer Costs: In the event that the Servicer does not reimburse
the Trustee under this Agreement, all costs associated with the transfer of
servicing from the predecessor Servicer, including, without limitation, any
costs or expenses associated with the termination of the predecessor Servicer,
the appointment of a successor servicer, the complete transfer of all servicing
data and the completion, correction or manipulation of such servicing data as
may be required by the Trustee or any successor servicer to correct any errors
or insufficiencies in the servicing data or otherwise to enable the Trustee or
successor servicer to service the Mortgage Loans properly and effectively.

                                      -60-

<PAGE>

     SFAS 140: Statement of Financial Accounting Standard No. 140, Accounting
for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities dated September 2000, published by the Financial Accounting
Standards Board of the Financial Accounting Foundation.

     Significance Estimate: With respect to any Distribution Date, and in
accordance with Item 1115 of Regulation AB, shall be an amount determined based
on the reasonable good-faith estimate by the Depositor or its Affiliate (and
reported to the Trustee) of the aggregate maximum probable exposure of the
outstanding Certificates to the Swap Agreement and the Corridor Contracts, as
applicable.

     Significance Percentage: With respect to any Distribution Date, and in
accordance with Item 1115 of Regulation AB, shall be a percentage equal to the
Significance Estimate divided by the aggregate outstanding Stated Principal
Balance of the Mortgage Loans, prior to the distribution of the Principal
Distribution Amount on such Distribution Date.

     Sponsor: First Franklin Financial Corporation, a Delaware corporation, or
its successor in interest.

     Startup Day: As defined in Section 2.07 hereof.

     Stated Principal Balance: With respect to any Mortgage Loan or related REO
Property (1) as of the Cut-off Date, the Cut-off Date Principal Balance thereof,
and (2) as of any Distribution Date, such Cut-off Date Principal Balance, minus
the sum of (A) the principal portion of the Scheduled Payments (x) due with
respect to such Mortgage Loan during each Due Period ending prior to such
Distribution Date and (y) that were received by the Servicer as of the close of
business on the Determination Date related to such Distribution Date or with
respect to which Advances were made on the Servicer Remittance Date prior to
such Distribution Date and (B) all Principal Prepayments with respect to such
Mortgage Loan received on or prior to (x) the last day of the related Prepayment
Period for Principal Prepayments in full and (y) the last day of the preceding
calendar month for Principal Prepayments in part, and all Liquidation Proceeds
to the extent applied by the Servicer as recoveries of principal in accordance
with Section 3.12 with respect to such Mortgage Loan, that were received by the
Servicer on or before the last day of the related Prepayment Period for
Liquidation Proceeds in full and the last day of the preceding calendar month
for Liquidation Proceeds in part. Notwithstanding the foregoing, the Stated
Principal Balance of a Liquidated Loan shall be deemed to be zero.

     Stepdown Date: The earlier to occur of: (A) the first Distribution Date on
which the aggregate Certificate Principal Balance of the Class A-1 Certificates
and Class A-2 Certificates has been reduced to zero; or (B) the later to occur
of (1) the Distribution Date in May 2010 or (2) the first Distribution Date on
which (A) the Class A Certificate Principal Balance (after giving effect to
distributions of the Principal Funds amount for such Distribution Date) is less
than or equal to (B) 61.40% of the aggregate Stated Principal Balance of the
Mortgage Loans.

     Stepdown Required Loss Percentage: For any Distribution Date, the
applicable percentage for such Distribution Date set forth in the following
table:

<TABLE>
<CAPTION>
DISTRIBUTION DATE OCCURRING IN   STEPDOWN REQUIRED LOSS PERCENTAGE
------------------------------   ---------------------------------
<S>                              <C>
May 2009 - April 2010            1.30% with respect to May 2009, plus
                                 an additional 1/12th of 1.55%
</TABLE>

                                      -61-

<PAGE>

<TABLE>
<S>                              <C>
                                 for each month thereafter
May 2010 - April 2011            2.85% with respect to May 2010, plus
                                 an additional 1/12th of 1.65% for each
                                 month thereafter
May 2011 - April 2012            4.50% with respect to May 2011, plus
                                 an additional 1/12th of 1.35% for each
                                 month thereafter
May 2012 - April 2013            5.85% with respect to May 2012, plus
                                 an additional 1/12th of 0.70% for each
                                 month thereafter
May 2013 and therafter           6.55%
</TABLE>

     Stepdown Trigger Event: With respect to the Certificates on or after the
Stepdown Date, a Distribution Date on which (1) the quotient, measured on a
rolling three month basis, of (A) the aggregate Stated Principal Balance of all
Mortgage Loans that are 60 or more days Delinquent (including, for the purposes
of this calculation, Mortgage Loans in foreclosure and REO Properties and
Mortgage Loans with respect to which the applicable Mortgagor is in bankruptcy)
and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the
preceding Servicer Remittance Date, equals or exceeds the product of (i) 41.45%
and (ii) the Required Percentage or (2) the quotient (expressed as a percentage)
of (A) the aggregate Realized Losses incurred from the Cut-off Date through the
last day of the calendar month preceding such Distribution Date and (B) the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date
exceeds the Stepdown Required Loss Percentage. For purposes hereof, for any
Distribution Date, the calculation of "rolling three-month basis" requires
first, the calculation of the quotient described in (a) of this definition for
each of the three (3) Due Periods immediately prior to such Distribution Date,
second, the addition of such 3 quotients and third, dividing the sum of such 3
quotients by 3.

     Subcontractor: Any outsourcer that performs one or more discrete functions
identified in Item 1122(d) of Regulation AB with respect to 5% or more of the
Mortgage Loans under the direction or authority of a Servicer (measured by
aggregate Stated Principal Balance of the Mortgage Loans, annually at the
commencement of the calendar year prior to the year in which an Assessment of
Compliance is required to be delivered, multiplied by a fraction, the numerator
of which is the number of months during which such Subcontractor performs such
discrete functions and the denominator of which is 12, or, in the case of the
year in which the Closing Date occurs, the number of months elapsed in such
calendar year).

     Subordinate Certificate Corridor Contract: The confirmation and agreement,
including the schedule thereto and the related credit support annex (attached as
Exhibit M-4 hereto), between the Trustee on behalf of the Issuing Entity and the
Cap Contract Counterparty (attached as Exhibit M-3 hereto), with respect to the
Subordinate Certificates.

     Subordinate Certificate Corridor Contract Notional Balance: With respect to
any Distribution Date, the Subordinate Certificate Corridor Contract Notional
Balance set forth for such Distribution Date in the Subordinate Certificate
LIBOR Cap Table (attached as Schedule I to Exhibit M-3 hereto).

     Subordinate Certificate Corridor Contract Termination Date: The
Distribution Date in October 2007.

                                      -62-

<PAGE>

     Subordinate Certificate Upper Collar: With respect to each Distribution
Date with respect to which payments are received on the Subordinate Certificate
Corridor Contract, a rate equal to the lesser of One-Month LIBOR and 8.540% per
annum.

     Subordinate Certificates: The Class M and Class B Certificates.

     Subsequent Recovery: Any amount received on a Mortgage Loan (net of amounts
reimbursed to the Servicer related to Liquidated Mortgage Loans) subsequent to
such Mortgage Loan being determined to be a Liquidated Mortgage Loan.

     Sub-Servicer: Any Person that services Mortgage Loans on behalf of the
Servicer pursuant to a Subservicing Agreement and is responsible for the
performance of the material servicing functions required to be performed by the
Servicer under this Agreement that are identified in Item 1122(d) of Regulation
AB with respect to 10% or more of the Mortgage Loans under the direction or
authority of the Servicer (measured by aggregate Stated Principal Balance of the
Mortgage Loans, annually at the commencement of the calendar year prior to the
year in which an Assessment of Compliance is required to be delivered,
multiplied by a fraction, the numerator of which is the number of months during
which such Subservicer services the related Mortgage Loans and the denominator
of which is 12, or, in the case of the year in which the Closing Date occurs,
the number of months elapsed in such calendar year). Any subservicer shall meet
the qualifications set forth in Section 3.02.

     Subservicing Agreement: As defined in Section 3.02(a).

     Substitution Adjustment Amount: As defined in Section 2.03(c).

     Supplemental Interest Trust: The separate trust, established pursuant to
Section 4.04(l) of this Agreement and held by the Trustee for the benefit of the
holders of the Certificates as a segregated subtrust of the Trust Fund, (i) in
which the Swap Agreement will be held, certain distributions to
Certificateholders will be made and any Swap Termination Payments or Net Swap
Payments received from the Swap Counterparty will be deposited as set forth in
Section 4.04 hereof and (ii) out of which any Swap Termination Payments or Net
Swap Payments owed to the Swap Counterparty will be paid.

     Supplemental Interest Trust Trustee: LaSalle Bank National Association, a
national banking association, not in its individual capacity, but solely in its
capacity as trustee of the Supplemental Interest Trust for the benefit of the
Certificateholders under this Agreement, and any successor thereto, and any
corporation or national banking association resulting from or surviving any
consolidation or merger to which it or its successors may be a party and any
successor trustee as may from time to time be serving as successor trustee
hereunder.

     Swap Account: The separate Eligible Account created and maintained by the
Supplemental Interest Trust Trustee pursuant to Section 4.04(l) in the name of
the Supplemental Interest Trust Trustee for the benefit of the Supplemental
Interest Trust and designated "LaSalle Bank National Association, as trustee, in
trust for registered holders of Merrill Lynch First Franklin Mortgage Loan
Trust, Mortgage Loan Asset-Backed Certificates, Series 2007-2." Funds in the
Swap Account shall be held in trust for the Supplemental Interest Trust for the
uses and purposes set forth in this Agreement.

     Swap Agreement: The confirmation and agreement, including the schedule
thereto and the related credit support annex, between the Swap Counterparty and
the trustee of the Supplemental Interest Trust for the benefit of the
Certificateholders (attached as Exhibit Q hereto) or any other swap agreement

                                      -63-

<PAGE>

(including any related schedules) held by the Supplemental Interest Trust
pursuant to Section 4.04(l) hereof.

     Swap Counterparty: Bear Stearns Financial Products Inc., or any successor
counterparty who meets the requirements set forth in the Swap Agreement.

     Swap LIBOR: With respect to any Distribution Date (and the related Accrual
Period) the product of (i) the Floating Rate Option (as defined in the Swap
Agreement for the related Swap Payment Date), (ii) two and (iii) the quotient of
(a) the actual number of days in the Accrual Period for the Lower Tier REMIC
Interests divided by (b) 30.

     Swap Payment Date: For so long as the Swap Agreement is in effect or
amounts remain unpaid thereunder, the Business Day immediately preceding each
Distribution Date.

     Swap Posted Collateral Account: The segregated Eligible Account created and
maintained by the Supplemental Interest Trust Trustee pursuant to Section
4.04(l) in the name of the Supplemental Interest Trust Trustee for the benefit
of the Supplemental Interest Trust and designated "LaSalle Bank National
Association, as trustee, in trust for registered holders of Merrill Lynch First
Franklin Mortgage Loan Trust, Mortgage Loan Asset-Backed Certificates, Series
2007-2." Funds in the Swap Posted Collateral Account shall be held in trust for
the Supplemental Interest Trust for the uses and purposes set forth in the Swap
Agreement

     SWAP REMIC: As described in the Preliminary Statement and Section 2.07.

     SWAP REMIC Interests: Each of the interests in the SWAP REMIC as set forth
in the Preliminary Statement.

     SWAP REMIC Regular Interests: Each of the SWAP REMIC Interests other than
the Class SWR Interest.

     Swap Termination Payment: Any payment payable by the Supplemental Interest
Trust or the Swap Counterparty upon termination of the Swap Agreement pursuant
to the Swap Agreement.

     Tax Matters Person: The Person designated as "tax matters person" in the
manner provided under Treasury regulation Section 1.860F-4(d) and Treasury
regulation Section 301.6231(a)(7)-1.

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

     Trust Fund: The corpus of the Issuing Entity created hereunder consisting
of (i) the Mortgage Loans and all interest and principal received on or with
respect thereto on and after the Cut-off Date to the extent not applied in
computing the Cut-off Date Principal Balance thereof, exclusive of interest not
required to be deposited in the Collection Account; (ii) the Collection Account
and the Certificate Account and all amounts deposited therein pursuant to the
applicable provisions of this Agreement; (iii) property that secured a Mortgage
Loan and has been acquired by foreclosure, deed in lieu of foreclosure or
otherwise; (iv) the mortgagee's rights under the Insurance Policies with respect
to the Mortgage Loans and/or the related Mortgaged Properties; (v) all proceeds
of the conversion, voluntary or involuntary, of any of the foregoing into cash
or other liquid property; (vi) the Corridor Contracts and the Corridor Contract
Account; and (vii) the Supplemental Interest Trust, which in turn holds the Swap
Agreement.

                                      -64-

<PAGE>

     Trustee: LaSalle Bank National Association, a national banking association,
not in its individual capacity, but solely in its capacity as trustee for the
benefit of the Certificateholders under this Agreement, and any successor
thereto, and any corporation or national banking association resulting from or
surviving any consolidation or merger to which it or its successors may be a
party and any successor trustee as may from time to time be serving as successor
trustee hereunder; it being understood that certain duties of the Trustee under
Sections 2.01, 2.02 and 3.13 with respect to the possession and administration
of the Mortgage Files generally may be carried out by a custodian engaged by the
Trustee.

     Uncertificated Class C Interest: An uncertificated REMIC Regular Interest
having the characteristics described in the Preliminary Statement.

     Unpaid Realized Loss Amount: The Class M-1 Unpaid Realized Loss Amount,
Class M-2 Unpaid Realized Loss Amount, Class M-3 Unpaid Realized Loss Amount,
Class M-4 Unpaid Realized Loss Amount, Class M-5 Unpaid Realized Loss Amount,
Class M-6 Unpaid Realized Loss Amount, Class B-1 Unpaid Realized Loss Amount,
Class B-2 Unpaid Realized Loss Amount, Class B-3 Unpaid Realized Loss Amount and
Class C Unpaid Realized Loss Amount, collectively.

     Upper Tier REMIC: As described in the Preliminary Statement and Section
2.07.

     Upper Tier REMIC Net WAC Cap: In the case of the Class UTA-1 Interest and
the Residual Interest, a per annum rate equal to the weighted average of the
interest rate of the Class LTII1B Interest for such Distribution Date. In the
case of the Class UTA-2A, Class UTA-2B, Class UTA-2C and Class UTA-2D Interests,
a per annum rate equal to the weighted average of the interest rate for the
Class LTII2B for such Distribution Date. In the case of the Class UTM-1, Class
UTM-2, Class UTM-3, Class UTM-4, Class UTM-5, Class UTM-6, Class UTB-1, Class
UTB-2 and Class UTB-3 Interests, a per annum rate equal to the weighted average
of the interest rates of Class LTII1B and Class LTII2B Interests for such
Distribution Date weighted, respectively, on the basis of the uncertificated
principal balances of the Class LTII1A and the Class LTII2A Interests.

     Voting Rights: The portion of the voting rights of all the Certificates
that is allocated to any of the Certificates for purposes of the voting
provisions hereunder. Voting Rights allocated to each Class of Certificates
shall be allocated as follows: (1) 98% to the Class A, Class M and Class B
Certificates, with the allocation among such Certificates to be in proportion to
the Certificate Principal Balance of each Class relative to the Certificate
Principal Balance of all other Classes and (2) each Class of the Class C and
Class P will be allocated 1% of the Voting Rights. Voting Rights will be
allocated among the Certificates of each such Class in accordance with their
respective Percentage Interests.

     Weighted Average Available Funds Cap: With respect to a Distribution Date,
the per annum rate equal to the weighted average (weighted in proportion to the
results of subtracting from the aggregate Stated Principal Balance of each
Mortgage Group, the current Certificate Principal Balance of the Class A-1 and
Class R Certificates, in the case of Group One, or the Class A-2A, Class A-2B,
Class A-2C and Class A-2D Certificates, in the case of Group Two) of the Class
A-1 Available Funds Cap and the Class A-2 Available Funds Cap.

     Weighted Average Maximum Rate Cap: With respect to a Distribution Date, the
per annum rate equal to the weighted average (weighted in proportion to the
results of subtracting from the aggregate Stated Principal Balance of each
Mortgage Group, the current Certificate Principal Balance of the Class A-1 and
Class R Certificates, in the case of Group One, or the Class A-2A, Class A-2B,
Class A-2C and

                                      -65-

<PAGE>

Class A-2D Certificates, in the case of Group Two) of the Class A-1 Maximum Rate
Cap and the Class A-2 Maximum Rate Cap.

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                         REPRESENTATIONS AND WARRANTIES

     SECTION 2.01. Conveyance of Mortgage Loans

     The Depositor, concurrently with the execution and delivery hereof, does
hereby sell, transfer, assign, set over and convey to the Trustee without
recourse all the right, title and interest of the Depositor in and to the assets
of the Trust Fund. Such assignment includes all interest and principal received
on or with respect to the Mortgage Loans on or after the Cut-off Date (other
than Scheduled Payments due on the Mortgage Loans on or before the Cut-off
Date).

     It is agreed and understood by the Depositor, the Servicer and the Trustee
that it is not intended that any Mortgage Loan be included in the Trust that is,
without limitation, either (i) a "High-Cost Home Loan" as defined in the New
Jersey Home Ownership Act effective November 27, 2003; (ii) a "High-Cost Home
Loan" as defined in the New Mexico Home Loan Protection Act effective January 1,
2004; (iii) a "High-Cost Home Mortgage Loan" as defined in the Massachusetts
Predatory Home Loan Practices Act effective November 7, 2004; (iv) a "High-Cost
Home Loan" as defined by the Indiana High Cost Home Loan Law effective January
1, 2005 or (v) a "High-Cost Home Loan" as defined by the Illinois High Risk Home
Loan Act effective January 1, 2004.

     In connection with such assignment, the Depositor does hereby deliver to,
and deposit with the Trustee the following documents or instruments with respect
to each Mortgage Loan:

          (A) The original Mortgage Note endorsed in blank or, "Pay to the order
     of LaSalle Bank National Association, as trustee for the Merrill Lynch
     First Franklin Mortgage Loan Trust, Mortgage Loan Asset-Backed
     Certificates, Series 2007-2, without recourse" together with all riders
     thereto. The Mortgage Note shall include all intervening endorsements
     showing a complete chain of the title from the originator of the Mortgage
     Loan to [____________________].

          (B) Except as provided below and for each Mortgage Loan that is not a
     MERS Loan, the original recorded Mortgage together with all riders thereto,
     with evidence of recording thereon, or, if the original Mortgage has not
     yet been returned from the recording office, a copy of the original
     Mortgage together with all riders thereto certified to be a true copy of
     the original of the Mortgage that has been delivered for recording in the
     appropriate recording office of the jurisdiction in which the Mortgaged
     Property is located and in the case of each MERS Loan, the original
     Mortgage together with all riders thereto, noting the presence of the MIN
     of the Loan and either language indicating that the Mortgage Loan is a MOM
     Loan or if the Mortgage Loan was not a MOM Loan at origination, the
     original Mortgage and the assignment thereof to MERS, with evidence of
     recording indicated thereon, or a copy of the Mortgage certified by the
     public recording office in which such Mortgage has been recorded.

                                      -66-

<PAGE>

          (C) In the case of each Mortgage Loan that is not a MERS Loan, the
     original Assignment of each Mortgage in blank or, to "LaSalle Bank National
     Association, as trustee for the Merrill Lynch First Franklin Mortgage Loan
     Trust, Mortgage Loan Asset-Backed Certificates, Series 2007-2."

          (D) The original policy of title insurance (or a preliminary title
     report, commitment or binder if the original title insurance policy has not
     been received from the title insurance company).

          (E) Originals of any intervening assignments of the Mortgage, with
     evidence of recording thereon or, if the original intervening assignment
     has not yet been returned from the recording office, a copy of such
     assignment certified to be a true copy of the original of the assignment
     which has been sent for recording in the appropriate jurisdiction in which
     the Mortgaged Property is located.

          (F) Originals of all assumption and modification agreements, if any.

          (G) If in connection with any Mortgage Loan, the Depositor cannot
     deliver the Mortgage, Assignments of Mortgage or assumption, consolidation
     or modification, as the case may be, with evidence of recording thereon, if
     applicable, concurrently with the execution and delivery of this Agreement
     solely because of a delay caused by the public recording office where such
     Mortgage, Assignments of Mortgage or assumption, consolidation or
     modification, as the case may be, has been delivered for recordation, the
     Depositor shall deliver or cause to be delivered to the Trustee written
     notice stating that such Mortgage or assumption, consolidation or
     modification, as the case may be, has been delivered to the appropriate
     public recording office for recordation. Thereafter, the Depositor shall
     deliver or cause to be delivered to the Trustee such Mortgage, Assignments
     of Mortgage or assumption, consolidation or modification, as the case may
     be, with evidence of recording indicated thereon, if applicable, upon
     receipt thereof from the public recording office. To the extent any
     required endorsement is not contained on a Mortgage Note or an Assignment
     of Mortgage, the Depositor shall make or cause to be made such endorsement.

          (H) With respect to any Mortgage Loan, none of the Depositor, the
     Servicer or the Trustee shall be obligated to cause to be recorded the
     Assignment of Mortgage referred to in this Section 2.01. In the event an
     Assignment of Mortgage is not recorded, the Servicer shall have no
     liability for its failure to receive and act on notices related to such
     Assignment of Mortgage.

     The ownership of each Mortgage Note, the Mortgage and the contents of the
related Mortgage File is vested in the Trustee on behalf of the
Certificateholders. Neither the Depositor nor the Servicer shall take any action
inconsistent with such ownership and shall not claim any ownership interest
therein. The Depositor and the Servicer shall respond to any third party
inquiries with respect to ownership of the Mortgage Loans by stating that such
ownership is held by the Trustee on behalf of the Certificateholders. Mortgage
documents relating to the Mortgage Loans not delivered to the Trustee are and
shall be held in trust by the Servicer, for the benefit of the Trustee as the
owner thereof, and the Servicer's possession of the contents of each Mortgage
File so retained is for the sole purpose of servicing the related Mortgage Loan,
and such retention and possession by the Servicer, is in a custodial capacity
only. The Depositor agrees to take no action inconsistent with the Trustee's
ownership of the Mortgage Loans, to promptly

                                      -67-

<PAGE>

indicate to all inquiring parties that the Mortgage Loans have been sold and to
claim no ownership interest in the Mortgage Loans.

     It is the intention of this Agreement that the conveyance of the
Depositor's right, title and interest in and to the Trust Fund pursuant to this
Agreement shall constitute a purchase and sale and not a loan. If the conveyance
of Mortgage Loans from the Sponsor to the Depositor is characterized as a pledge
and not a sale, then the Depositor shall be deemed to have transferred to the
Trustee all of the Depositor's right, title and interest in, to and under the
obligations of the Sponsor deemed to be secured by said pledge; and it is the
intention of this Agreement that the Depositor shall also be deemed to have
granted to the Trustee a first priority security interest in all of the
Depositor's right, title, and interest in, to and under the obligations of the
Sponsor to the Depositor deemed to be secured by said pledge and that the
Trustee shall be deemed to be an independent custodian for purposes of
perfection of the security interest granted to the Depositor. If the conveyance
of the Mortgage Loans from the Depositor to the Trustee is characterized as a
pledge, it is the intention of this Agreement that this Agreement shall
constitute a security agreement under applicable law, and that the Depositor
shall be deemed to have granted to the Trustee a first priority security
interest in all of the Depositor's right, title and interest in, to and under
the Mortgage Loans, all payments of principal of or interest on such Mortgage
Loans, all other rights relating to and payments made in respect of the Trust
Fund, and all proceeds of any thereof. If the trust created by this Agreement
terminates prior to the satisfaction of the claims of any Person in any
Certificates, the security interest created hereby shall continue in full force
and effect and the Trustee shall be deemed to be the collateral agent for the
benefit of such Person.

     In addition to the conveyance made in the first paragraph of this Section
2.01, the Depositor does hereby convey, assign and set over to the Trustee for
the benefit of the Certificateholders its rights and interests under the
Purchase Agreement, including the Depositor's right, title and interest in the
representations and warranties contained in the Purchase Agreement and the
benefit of the repurchase obligations and the obligation of the Sponsor
contained in the Purchase Agreement to take, at the request of the Depositor or
the Trustee, all action on its part which is reasonably necessary to ensure the
enforceability of a Mortgage Loan. The Trustee hereby accepts such assignment,
and shall be entitled to exercise all rights of the Depositor under the Purchase
Agreement, as if, for such purpose, it were the Depositor. The foregoing sale,
transfer, assignment, set-over, deposit and conveyance does not and is not
intended to result in creation or assumption by the Trustee of any obligation of
the Depositor, the Sponsor, or any other Person in connection with the Mortgage
Loans or any other agreement or instrument relating thereto.

     SECTION 2.02. Acceptance by the Trustee of the Mortgage Loans

     Except as set forth in the exception report delivered contemporaneously
herewith (the "Exception Report"), the Trustee acknowledges receipt of the
Mortgage Note for each Mortgage Loan and delivery of a Mortgage File (but does
not acknowledge receipt of all documents required to be included in such
Mortgage File) with respect to each Mortgage Loan and declares that it holds and
will hold such documents and any other documents constituting a part of the
Mortgage Files delivered to it in trust for the use and benefit of all present
and future Certificateholders. The Depositor will cause the Sponsor to
repurchase any Mortgage Loan to which a material exception was taken in the
Exception Report unless such exception is cured to the satisfaction of the
Depositor and the Trustee within 45 Business Days of the Closing Date.

                                      -68-

<PAGE>

     The Trustee acknowledges receipt of the three Corridor Contracts (forms of
which are attached hereto as Exhibits M-1, M-2 and M-3) and the Purchase
Agreement.

     The Trustee acknowledges receipt of the Swap Agreement that will be held in
the Supplemental Interest Trust and is hereby instructed to enter into the Swap
Agreement, not in its individual capacity, but solely as Supplemental Interest
Trust Trustee.

     The Trustee agrees, for the benefit of Certificateholders and the NIMs
Insurer to review each Mortgage File delivered to it within sixty (60) days
after the Closing Date. The Trustee will ascertain and to certify, within
seventy (70) days of the Closing Date, to the NIMs Insurers, the Depositor and
the Servicer that all documents required by Section 2.01 (A)-(B), (C) (if
applicable), and (D)-(E), and the documents if actually received by it, under
Section 2.01(F), have been executed and received, and that such documents relate
to the Mortgage Loans identified in Exhibit B that have been conveyed to it. It
is herein acknowledged that, in conducting such review, the Trustee shall not be
under any duty or obligation to inspect, review or examine any such documents,
instruments, certificates or other papers to determine that they are genuine,
enforceable or appropriate for the represented purpose, that they have actually
been recorded or that they are other than what they purport to be on their face.
If the Trustee finds any document or documents constituting a part of a Mortgage
File to be missing or defective (that is, mutilated, damaged, defaced or
unexecuted) in any material respect, the Trustee shall promptly (and in any
event within no more than five Business Days) after such finding so notify the
NIMs Insurer, the Servicer, the Sponsor and the Depositor. In addition, the
Trustee shall also notify the NIMs Insurer, the Servicer, the Sponsor and the
Depositor if the original Mortgage with evidence of recording thereon with
respect to a Mortgage Loan is not received within seventy (70) days of the
Closing Date; if it has not been received because of a delay caused by the
public recording office where such Mortgage has been delivered for recordation,
the Depositor shall deliver or cause to be delivered to the Trustee written
notice stating that such Mortgage has been delivered to the appropriate public
recording office for recordation and thereafter the Depositor shall deliver or
cause to be delivered such Mortgage with evidence of recording thereon upon
receipt thereof from the public recording office. The Trustee shall request that
the Sponsor correct or cure such omission, defect or other irregularity, or
substitute a Mortgage Loan pursuant to the provisions of Section 2.03(c), within
ninety (90) days from the date the Sponsor was notified of such omission or
defect and, if the Sponsor does not correct or cure such omission or defect
within such period, that the Sponsor purchase such Mortgage Loan from the
Issuing Entity within ninety (90) days from the date the Trustee notified the
Sponsor of such omission, defect or other irregularity at the Purchase Price of
such Mortgage Loan.

     The Purchase Price for any Mortgage Loan purchased pursuant to this Section
2.02 shall be paid to the Servicer and deposited by the Servicer in the
Certificate Account or Collection Account, as appropriate, promptly upon
receipt, and upon receipt by the Trustee of written notification of such deposit
signed by a Servicing Officer or receipt of such deposit by the Trustee, the
Trustee, upon receipt of a Request for Release and certification of the Servicer
of such required deposit, shall promptly release to the Sponsor the related
Mortgage File and the Trustee shall execute and deliver such instruments of
transfer or assignment, without recourse, as shall be requested by the Sponsor
and necessary to vest in the Sponsor or its designee, as the case may be, any
Mortgage Loan released pursuant hereto, and the Trustee shall have no further
responsibility with regard to such Mortgage Loan. It is understood and agreed
that the obligation of the Sponsor to purchase, cure or substitute any Mortgage
Loan as to which a material defect in or omission of a constituent document
exists shall constitute the sole remedy respecting such defect or omission
available to the Trustee on behalf of Certificateholders and the NIMs Insurer.
The

                                      -69-

<PAGE>

preceding sentence shall not, however, limit any remedies available to
Certificateholders, the NIMs Insurer, the Depositor or the Trustee pursuant to
the Purchase Agreement.

     The Trustee shall be under no duty or obligation to inspect, review and
examine such documents, instruments, certificates or other papers to determine
that they are genuine, enforceable, recordable, duly authorized, sufficient,
legal, valid or appropriate to the represented purpose, or that they have
actually been recorded, or that they are other than what they purport to be on
their face. The Trustee shall keep confidential the name of each Mortgagor
except as required for the performance of this Agreement and the Trustee shall
not solicit any such Mortgagor for the purpose of refinancing the related
Mortgage Loan; notwithstanding anything herein to the contrary, the foregoing
shall not be construed to prohibit (i) disclosure of any and all information
that is or becomes publicly known, or information obtained by the Trustee from
sources other than the other parties hereto, (ii) disclosure of any and all
information (A) if required to do so by any applicable law, rule or regulation,
(B) to any government agency or regulatory body having or claiming authority to
regulate or oversee any aspects of the business of the Trustee or that of any
Affiliate, (C) pursuant to any subpoena, civil investigation demand or similar
demand or request of any court, regulatory authority, arbitrator or arbitration
to which the Trustee or any Affiliate or an officer, director, employer or
shareholder thereof is a party or (D) to any Affiliate, independent or internal
auditor, agent, employee or attorney of the Trustee having a need to know the
same, provided that the Trustee advises such recipient of the confidential
nature of the information being disclosed, or (iii) any other disclosure
authorized by the Depositor.

     Within seventy (70) days of the Closing Date, the Trustee shall deliver to
the NIMs Insurer, the Depositor and the Servicer the Trustee's Certification,
substantially in the form of Exhibit D attached hereto, evidencing the
completeness of the Mortgage Files, with any exceptions noted thereto.

     SECTION 2.03. Representations, Warranties and Covenants of the Depositor

          (a) The Depositor hereby represents and warrants to the NIMs Insurer,
the Servicer and the Trustee as follows, as of the date hereof:

          (i) The Depositor is duly organized and is validly existing as a
     corporation in good standing under the laws of the State of Delaware and
     has full power and authority (corporate and other) necessary to own or hold
     its properties and to conduct its business as now conducted by it and to
     enter into and perform its obligations under this Agreement and the
     Purchase Agreement.

          (ii) The Depositor has the full corporate power and authority to
     execute, deliver and perform, and to enter into and consummate the
     transactions contemplated by, this Agreement and the Purchase Agreement and
     has duly authorized, by all necessary corporate action on its part, the
     execution, delivery and performance of this Agreement and the Purchase
     Agreement; and this Agreement and the Purchase Agreement, assuming the due
     authorization, execution and delivery hereof by the other parties hereto,
     constitutes a legal, valid and binding obligation of the Depositor,
     enforceable against the Depositor in accordance with its terms, subject, as
     to enforceability, to (i) bankruptcy, insolvency, reorganization,
     moratorium and other similar laws affecting creditors' rights generally and
     (ii) general principles of equity, regardless of whether enforcement is
     sought in a proceeding in equity or at law.

          (iii) The execution and delivery of this Agreement and the Purchase
     Agreement by the Depositor, the consummation of the transactions
     contemplated by this Agreement and the

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     Purchase Agreement, and the fulfillment of or compliance with the terms
     hereof are in the ordinary course of business of the Depositor and will not
     (A) result in a material breach of any term or provision of the charter or
     by-laws of the Depositor or (B) materially conflict with, result in a
     violation or acceleration of, or result in a material default under, the
     terms of any other material agreement or instrument to which the Depositor
     is a party or by which it may be bound or (C) constitute a material
     violation of any statute, order or regulation applicable to the Depositor
     of any court, regulatory body, administrative agency or governmental body
     having jurisdiction over the Depositor; and the Depositor is not in breach
     or violation of any material indenture or other material agreement or
     instrument, or in violation of any statute, order or regulation of any
     court, regulatory body, administrative agency or governmental body having
     jurisdiction over it which breach or violation may materially impair the
     Depositor's ability to perform or meet any of its obligations under this
     Agreement.

          (iv) No litigation is pending, or, to the best of the Depositor's
     knowledge, threatened, against the Depositor that would materially and
     adversely affect the execution, delivery or enforceability of this
     Agreement and the Purchase Agreement or the ability of the Depositor to
     perform its obligations under this Agreement and the Purchase Agreement in
     accordance with the terms hereof.

          (v) No consent, approval, authorization or order of any court or
     governmental agency or body is required for the execution, delivery and
     performance by the Depositor of, or compliance by the Depositor with, this
     Agreement and the Purchase Agreement or the consummation of the
     transactions contemplated hereby, or if any such consent, approval,
     authorization or order is required, the Depositor has obtained the same.
     The Depositor hereby represents and warrants to the Trustee with respect to
     each Mortgage Loan as of the Closing Date, and following the transfer of
     the Mortgage Loans to it by the Sponsor, the Depositor had good title to
     the Mortgage Loans and the Mortgage Notes were subject to no offsets,
     claims, liens, mortgage, pledge, charge, security interest, defenses or
     counterclaims.

          (b) The representations and warranties of the Sponsor with respect to
the Mortgage Loans in the Purchase Agreement, which have been assigned to the
Trustee hereunder, were made as of the Closing Date as specified in the Purchase
Agreement. The Trustee acknowledges that the Depositor shall have no obligation
or liability with respect to any breach of any representation or warranty with
respect to the Mortgage Loans (except as set forth in Section 2.03(a)(v)) under
any circumstances.

          (c) Upon discovery by any of the NIMs Insurer, the Depositor, the
Servicer, the Sponsor or the Trustee (or its custodian) of a breach of any of
such representations and warranties that adversely and materially affects the
value of the related Mortgage Loan, Prepayment Charges or the interests of the
Certificateholders, the party discovering such breach shall give prompt written
notice to the other parties. Within ninety (90) days of the discovery of such
breach of any representation or warranty, the Depositor shall cause the Sponsor
to either (a) cure such breach in all material respects, (b) repurchase such
Mortgage Loan or any property acquired in respect thereof from the Trustee at
the Purchase Price or (c) within the two year period following the Closing Date,
substitute a Replacement Mortgage Loan for the affected Mortgage Loan. If a
breach of the representations and warranties set forth in the Purchase Agreement
hereof exists solely due to the unenforceability of a Prepayment Charge, the
Trustee or the other party having notice thereof shall notify the Servicer
thereof and not seek to enforce the repurchase remedy provided for herein unless
such Mortgage Loan is not current. In the event that such breach relates solely
to the unenforceability of a Prepayment Charge, amounts received in respect of

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such indemnity up to the amount of such Prepayment Charge shall be distributed
pursuant to Section 4.04(b)(i). As provided in the Purchase Agreement, if the
Sponsor substitutes for a Mortgage Loan for which there is a breach of any
representation or warranty in the Purchase Agreement, which adversely and
materially affects the value of such Mortgage Loan and such substitute mortgage
loan is not a Replacement Mortgage Loan, under the terms of the Purchase
Agreement, the Sponsor will, in exchange for such substitute Mortgage Loan, (i)
provide the applicable Purchase Price for the affected Mortgage Loan or (ii)
within two years of the Closing Date, substitute such affected Mortgage Loan
with a Replacement Mortgage Loan. Any such substitution shall not be effected
prior to the additional delivery to the Trustee of a Request for Release
substantially in the form of Exhibit I and shall not be effected unless it is
within two years of the Startup Day.

     With respect to any Mortgage Loan repurchased by the Sponsor pursuant to
the Purchase Agreement, the principal portion of the funds received by the
Servicer in respect of such repurchase of a Mortgage Loan will be considered a
Principal Prepayment and shall be deposited in the Certificate Account pursuant
to Section 3.05. Upon receipt by the Trustee of notice from the Servicer of
receipt by the Servicer of the full amount of the Purchase Price for a Deleted
Mortgage Loan, and upon receipt by the Trustee of the Mortgage File for a
Replacement Mortgage Loan substituted for a Deleted Mortgage Loan and a Request
for Release, the Trustee shall release and reassign to the Sponsor the related
Mortgage File for the Deleted Mortgage Loan and shall execute and deliver such
instruments of transfer or assignment, in each case without recourse,
representation or warranty, as shall be necessary to vest in such party or its
designee or assignee title to any Deleted Mortgage Loan released pursuant
hereto, free and clear of all security interests, liens and other encumbrances
created by this Agreement, which instruments shall be prepared by the Depositor
or the Sponsor, and the Trustee (and its custodian) shall have no further
responsibility with respect to the Mortgage File relating to such Deleted
Mortgage Loan.

     With respect to each Replacement Mortgage Loan to be delivered to the
Trustee pursuant to the terms of this Article II in exchange for a Deleted
Mortgage Loan: (i) the Sponsor must deliver to the Trustee the Mortgage File for
the Replacement Mortgage Loan containing the documents set forth in Section 2.01
along with a written certification certifying as to the Mortgage Loan satisfying
all requirements under the definition of Replacement Mortgage Loan and the
delivery of such Mortgage File and containing the granting language set forth in
Section 2.01; and (ii) the Depositor will be deemed to have made, with respect
to such Replacement Mortgage Loan, each of the representations and warranties
made by it with respect to the related Deleted Mortgage Loan. The Trustee shall
review the Mortgage File with respect to each Replacement Mortgage Loan and
certify to the Depositor that all documents required by Section 2.01(A)-(B), (C)
(if applicable), and (D)-(E) have been executed and received.

     For any month in which the Sponsor substitutes one or more Replacement
Mortgage Loans for one or more Deleted Mortgage Loans, the Sponsor will
determine the amount (if any) by which the aggregate principal balance of all
such Replacement Mortgage Loans as of the date of substitution and the aggregate
Prepayment Charges with respect to such Replacement Mortgage Loans is less than
the aggregate Stated Principal Balance (after application of the principal
portion of the Scheduled Payment due in the month of substitution) and aggregate
Prepayment Charges of all such Deleted Mortgage Loans. An amount equal to the
aggregate of the deficiencies described in the preceding sentence (such amount,
the "Substitution Adjustment Amount") plus an amount equal to any unreimbursed
costs, penalties and/or damages incurred by the Trust Fund in connection with
any violation relating to such Deleted Mortgage Loan of any predatory or abusive
lending law shall be remitted by the Sponsor to the Trustee for deposit into the
Certificate Account by the Sponsor on the Determination Date for the
Distribution Date relating

                                      -72-

<PAGE>

to the Prepayment Period during which the related Mortgage Loan became required
to be purchased or replaced hereunder.

     Notwithstanding any other provision of this Agreement, the right to
substitute Mortgage Loans pursuant to this Article II shall be subject to the
additional limitations that no substitution of a Replacement Mortgage Loan for a
Deleted Mortgage Loan shall be made unless the Trustee shall have received an
Opinion of Counsel (at the expense of the party seeking to make the
substitution) that, under current law, such substitution will not (A) affect
adversely the status of any REMIC established hereunder as a REMIC, or of the
related "regular interests" as "regular interests" in any such REMIC, or (B)
cause any such REMIC to engage in a "prohibited transaction" or prohibited
contribution pursuant to the REMIC Provisions.

     The Depositor shall amend the Mortgage Loan Schedule to reflect the removal
of such Deleted Mortgage Loan from the terms of this Agreement and the
substitution of the Replacement Mortgage Loan or Replacement Mortgage Loans.
Upon such substitution by the Sponsor, such Replacement Mortgage Loan or
Replacement Mortgage Loans shall constitute part of the Mortgage Pool and shall
be subject in all respects to the terms of this Agreement and the Purchase
Agreement, including all applicable representations and warranties thereof
included in the Purchase Agreement as of the date of substitution.

          (d) It is understood and agreed that the representations, warranties
and indemnification (i) set forth in this Section 2.03 and (ii) of the Sponsor
set forth in the Purchase Agreement and assigned to the Trustee by the Depositor
hereunder shall each survive delivery of the Mortgage Files and the Assignment
of Mortgage of each Mortgage Loan to the Trustee and shall continue throughout
the term of this Agreement.

          (e) The Depositor shall deliver a copy of the Mortgage Loan Schedule
to the Servicer on the Closing Date.

          (f) The Depositor shall notify the Servicer and the Trustee when any
NIM Notes are issued with the contact information of the Issuer and when such
NIM Notes are no longer outstanding and if such NIM Notes are insured by a NIMs
Insurer, the contact information with respect to such NIMs Insurer.

     SECTION 2.04. Representations and Warranties of the Servicer

          (a) The Servicer hereby represents and warrants to the Depositor and
the Trustee as follows, as of the date hereof:

          (i) The Servicer is duly organized and is validly existing as a
     corporation in good standing under the laws of the State of Delaware and is
     duly authorized and qualified to transact any and all business contemplated
     by this Agreement to be conducted by the Servicer in any state in which a
     Mortgaged Property is located or is otherwise not required under applicable
     law to effect such qualification and, in any event, is in compliance with
     the doing business laws of any such state, to the extent necessary to
     ensure its ability to enforce each Mortgage Loan, to service the Mortgage
     Loans in accordance with the terms of this Agreement and to perform any of
     its other obligations under this Agreement in accordance with the terms
     hereof.

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<PAGE>

          (ii) The Servicer has the corporate power and authority and to service
     each Mortgage Loan, and to execute, deliver and perform, and to enter into
     and consummate the transactions contemplated by this Agreement and has duly
     authorized by all necessary corporate action on the part of the Servicer
     the execution, delivery and performance of this Agreement; and this
     Agreement, assuming the due authorization, execution and delivery hereof by
     the other parties hereto, constitutes a legal, valid and binding obligation
     of the Servicer, enforceable against the Servicer in accordance with its
     terms, except that (a) the enforceability hereof may be limited by
     bankruptcy, insolvency, moratorium, receivership and other similar laws
     relating to creditors' rights generally and (b) the remedy of specific
     performance and injunctive and other forms of equitable relief may be
     subject to equitable defenses and to the discretion of the court before
     which any proceeding therefor may be brought.

          (iii) The execution and delivery of this Agreement by the Servicer,
     the servicing of the Mortgage Loans under this Agreement, the consummation
     of any other of the transactions contemplated by this Agreement, and the
     fulfillment of or compliance with the terms hereof are in the ordinary
     course of business of the Servicer and will not (A) result in a material
     breach of any term or provision of the charter or by-laws of the Servicer
     or (B) materially conflict with, result in a material breach, violation or
     acceleration of, or result in a material default under, the terms of any
     other material agreement or instrument to which the Servicer is a party or
     by which it may be bound, or (C) constitute a material violation of any
     statute, order or regulation applicable to the Servicer of any court,
     regulatory body, administrative agency or governmental body having
     jurisdiction over the Servicer; and the Servicer is not in breach or
     violation of any material indenture or other material agreement or
     instrument, or in violation of any statute, order or regulation of any
     court, regulatory body, administrative agency or governmental body having
     jurisdiction over it which breach or violation may materially impair the
     Servicer's ability to perform or meet any of its obligations under this
     Agreement.

          (iv) The Servicer is an approved servicer of mortgage loans for Fannie
     Mae.

          (v) No litigation is pending or, to the best of the Servicer's
     knowledge, threatened, against the Servicer that would materially and
     adversely affect the execution, delivery or enforceability of this
     Agreement or the ability of the Servicer to service the Mortgage Loans or
     to perform any of its other obligations under this Agreement in accordance
     with the terms hereof.

          (vi) No consent, approval, authorization or order of any court or
     governmental agency or body is required for the execution, delivery and
     performance by the Servicer of, or compliance by the Servicer with, this
     Agreement or the consummation of the transactions contemplated hereby, or
     if any such consent, approval, authorization or order is required, the
     Servicer has obtained the same.

     SECTION 2.05. Substitutions and Repurchases of Mortgage Loans that are not
"Qualified Mortgages"

     Upon discovery by the Depositor, the Servicer or the Trustee that any
Mortgage Loan does not constitute a "qualified mortgage" within the meaning of
section 860G(a)(3) of the Code, the party discovering such fact shall promptly
(and in any event within five (5) Business Days of discovery) give written
notice thereof to the other parties. In connection therewith, the Depositor
shall, at the Depositor's option, either (i) substitute, if the conditions in
Section 2.03(c) with respect to substitutions are satisfied, a

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<PAGE>

Replacement Mortgage Loan for the affected Mortgage Loan, or (ii) repurchase the
affected Mortgage Loan within ninety (90) days of such discovery in the same
manner as it would a Mortgage Loan for a breach of representation or warranty
contained in Section 2.03. The Trustee, upon the written direction of the
Depositor, shall reconvey to the Depositor the Mortgage Loan to be released
pursuant hereto in the same manner, and on the same terms and conditions, as it
would a Mortgage Loan repurchased for breach of a representation or warranty
contained in Section 2.03.

     SECTION 2.06. Authentication and Delivery of Certificates

     The Trustee acknowledges the transfer and assignment to it of the Trust
Fund and, concurrently with such transfer and assignment, the Trustee has caused
to be authenticated and delivered to or upon the order of the Depositor, in
exchange for the Mortgage Loans, Certificates duly authenticated by the
Authenticating Agent in authorized denominations evidencing ownership of the
entire Trust Fund. The Trustee agrees to hold the Trust Fund and exercise the
rights referred to above for the benefit of all present and future Holders of
the Certificates and to perform its duties set forth in this Agreement in
accordance with the provisions hereof.

     SECTION 2.07. REMIC Elections

          (a) The Depositor hereby instructs and authorizes the Trustee to make
an appropriate election to treat each of the Upper Tier REMIC, the Lower Tier
REMIC and the SWAP REMIC as a REMIC. The Trustee shall sign the returns
providing for such elections and such other tax or information returns that are
required to be signed by the Trustee under applicable law. This Agreement shall
be construed so as to carry out the intention of the parties that each of the
Upper Tier REMIC, the Lower Tier REMIC and the SWAP REMIC be treated as a REMIC
at all times prior to the date on which the Trust Fund is terminated.

          (b) The Preliminary Statement sets forth the designations and "latest
possible maturity date" for federal income tax purposes of all interests created
hereby. The "Startup Day" for purposes of the REMIC Provisions shall be the
Closing Date. Each REMIC's fiscal year shall be the calendar year.

     The SWAP REMIC shall consist of all of the assets of the Trust Fund, other
than (i) amounts distributable to the Class P Certificates pursuant to Section
4.04(b)(i) hereof, (ii) the interests issued by the SWAP REMIC and the interests
issued by the Lower Tier REMIC, (iii) the grantor trusts described in Section
2.07 hereof, (iv) each Corridor Contract and the Corridor Contract Account, (v)
the Swap Agreement and the Supplemental Interest Trust. The SWAP REMIC shall
issue the SWAP REMIC Regular Interests, which shall be designated as regular
interests of such REMIC, and shall issue the Class SWR Interest, which shall be
designated as the sole class of residual interest in the SWAP REMIC. Each of the
SWAP REMIC Regular Interests shall have the characteristics set forth in the
Preliminary Statement and this Section 2.07.

     The Lower Tier REMIC shall consist of the SWAP REMIC Regular Interests. The
Lower Tier REMIC shall issue the Lower Tier REMIC Regular Interests, which shall
be designated as regular interests of such REMIC and shall issue the Class LTR
Interest, which shall be designated as the sole class of residual interest in
the Lower Tier REMIC. Each of the Lower Tier REMIC Regular Interests shall have
the characteristics set forth in its definition and the Preliminary Statement.

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<PAGE>

     The assets of the Upper Tier REMIC shall be the Lower Tier REMIC Regular
Interests. The REMIC Regular Interests shall be designated as the regular
interests in the Upper Tier REMIC and the Residual Interest shall be designated
as the sole class of residual interest in the Upper Tier REMIC. For federal
income tax purposes, the pass-through rate on each REMIC Regular Interest (other
than the Uncertificated Class C Interest and the Class UT-IO Interest) and on
the sole class of residual interest in the Upper Tier REMIC shall be subject to
a cap equal to the Upper Tier REMIC Net WAC Cap.

     The beneficial ownership of the Class SWR Interest, the Class LTR Interest
and the Residual Interest shall be represented by the Class R Certificate. The
Class SWR Interest and the Class LTR Interest shall not have a principal balance
or bear interest.

          (c) The "tax matters person" with respect to each REMIC for purposes
of the REMIC Provisions shall be the beneficial owner of the Class R
Certificate; provided, however, that the Holder of the Class R Certificate, by
its acceptance thereof, irrevocably appoints the Trustee as its agent and
attorney-in-fact to act as "tax matters person" with respect to each such REMIC
for purposes of the REMIC Provisions. If there is more than one beneficial owner
of the Class R Certificate, the "tax matters person" shall be the Person with
the greatest percentage interest in the Class R Certificate and, if there is
more than one such Person, shall be determined under Treasury regulation Section
1.860F-4(d) and Treasury regulation Section 301.6231(a)(7)-1.

          (d) (i) It is intended that the rights of each Class of the Class A,
Class M and Class B Certificates to receive payments in respect of Excess
Interest shall be treated as a right in interest rate cap contracts written by
the Class C Certificateholders in favor of the holders of each Class of the
Class A, Class M and Class B Certificates and such shall be accounted for as
property held separate and apart from the regular interests in the Upper Tier
REMIC held by the holders of the Class A Certificates (other than the Class R
Certificate), Class M Certificates, Class B Certificates and the residual
interest in the Upper Tier REMIC held by the holder of the Class R Certificate.
For information reporting requirements, the rights of the Class A, Class M and
Class B Certificates to receive payments in respect of Excess Interest shall be
assumed to have zero or a de minimis value. This provision is intended to
satisfy the requirements of Treasury Regulations Section 1.860G-2(i) for the
treatment of property rights coupled with REMIC interests to be separately
respected and shall be interpreted consistently with such regulation. On each
Distribution Date, to the extent that any of the Class A, Class M and Class B
Certificates receive payments in respect of Excess Interest, such amounts, to
the extent not derived from payments on the Corridor Contracts or the Swap
Agreement, will be treated as distributed by the Upper Tier REMIC to the Class C
Certificates pro rata in payment of the amounts specified in Section 4.04(g) and
then paid to the relevant Class of Certificates pursuant to the related interest
rate cap agreement.

          (ii) It is intended that the beneficial owners of the Certificates
(other than the Class P and Class C Certificates) shall be treated as having
entered into a notional principal contract with respect to the beneficial owners
of the Class C Certificates. Pursuant to each such notional principal contract,
all beneficial owners of each Class of Certificates (other than the Class P and
Class C Certificates) shall be treated as having agreed to pay, on each
Distribution Date, to the beneficial owners of the Class C Certificates an
aggregate amount equal to the excess, if any, of (i) the amount payable on such
Distribution Date on the Corresponding REMIC Regular Interest of such Class of
Certificates over (ii) the amount payable on such Class of Certificates on such
Distribution Date (such excess, a "Class Payment Shortfall"). A Class Payment
Shortfall shall be allocated to each Class of Certificates to the extent that
interest accrued on such Class for the related Accrual Period at the
Pass-Through Rate for a Class, computed by substituting "Upper Tier REMIC Net
WAC Cap" for the Available Funds Cap set forth in

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<PAGE>

the definition thereof, exceeds the amount of interest accrued on such
Certificate at the Pass-Through Rate (without such substitution) for the related
Accrual Period, and a Class Payment Shortfall payable from principal collections
shall be allocated to the most subordinate Class of Certificates with an
outstanding principal balance to the extent of such balance.

          (e) The parties intend that the portion of the Trust Fund consisting
of the Uncertificated Class C Interest, the uncertificated Class UT-IO Interest,
the rights to receive payments deemed made by the Class A, Class M and Class B
Certificates in respect of notional principal contracts described in Section
2.07(d)(ii), the Corridor Contract Account, the Corridor Contracts, the
Supplemental Interest Trust which holds the Swap Agreement, and the obligation
of the holders of the Class C Certificates to pay amounts in respect of Excess
Interest to the holders of the Class A, Class M and Class B Certificates shall
be treated as a "grantor trust" under the Code, for the benefit of the holders
of the Class C Certificates, and the provisions hereof shall be interpreted
consistently with this intention. In furtherance of such intention, the Trustee
shall (i) furnish or cause to be furnished to the holders of the Class C
Certificates information regarding their allocable share, if any, of the income
with respect to such grantor trust, (ii) file or cause to be filed with the
Internal Revenue Service Form 1041 (together with any necessary attachments) and
such other forms as may be applicable, (iii) comply with such information
reporting obligations with respect to payments from such grantor trust to the
holders of Class A, Class M, Class B and Class C Certificates as may be
applicable under the Code and (iv) provide, upon applying for and receiving the
tax identification number for the grantor trust from the IRS, a properly
completed Form W-9 on behalf of such grantor trust to the Swap Counterparty and
Cap Contract Counterparty.

          (f) The parties intend that the portion of the Trust Fund consisting
of the right to receive amounts distributable to the Class P Certificates
pursuant to Section 4.04(b)(i) hereof shall be treated as a "grantor trust"
under the Code, for the benefit of the holders of the Class P Certificates, and
the provisions hereof shall be interpreted consistently with this intention. In
furtherance of such intention, the Trustee shall (i) furnish or cause to be
furnished to the holders of the Class P Certificates information regarding their
allocable share of the income with respect to such grantor trust and (ii) file
or cause to be filed with the Internal Revenue Service Form 1041 (together with
any necessary attachments) and such other forms as may be applicable.

          (g) The parties intend that amounts paid to the Swap Counterparty
under the Swap Agreement shall be deemed for federal income tax purposes to be
paid by the Class C Certificates first, out of funds deemed received in respect
of the Class UT-IO Interest, second, out of funds deemed received in respect of
the Uncertificated Class C Interest and third, out of funds deemed received in
respect of notional principal contracts described in Section 2.07(d)(ii), and
the provisions hereof shall be interpreted consistently with this intention. On
each Distribution Date, to the extent that amounts paid to the Swap Counterparty
are deemed paid out of funds received in respect of the Uncertificated Class C
Interest, such amounts will be treated as distributed by the Upper Tier REMIC to
the Class C Certificates pro rata in payment of the amounts specified in Section
4.04(g) and then paid to the Swap Counterparty pursuant to the Swap Agreement.

     The Supplemental Interest Trust shall be an "outside reserve fund" for
federal income tax purposes and not an asset of any REMIC. Furthermore, the
Holders of the Class C Certificates shall be the beneficial owners of the
Supplemental Interest Trust for all federal income tax purposes, and shall be
taxable on all income earned thereon.

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<PAGE>

          (h) All payments of principal and interest at the Net Mortgage Rate on
each of the Mortgage Loans (other than amounts distributable to the Class P
Certificates pursuant to Section 4.04(b)(i) hereof) received by the SWAP REMIC
with respect to the Mortgage Loans shall be paid to the SWAP REMIC Regular
Interests until the principal balance of all such interests have been reduced to
zero and any losses allocated to such interests have been reimbursed. Any
available funds remaining in the SWAP REMIC on a Distribution Date after
distributions to the SWAP REMIC Regular Interests shall be distributed to the
Class R Certificates on account of the Class SWR Interest. On each Distribution
Date, the Trustee shall distribute the aggregate Interest Funds (net of expenses
(other than any Net Swap Payment or Swap Termination Payment made to the Swap
Counterparty) and payments to the Class P Certificates) with respect to each of
the SWAP REMIC Regular Interests based on the interest rates for each such SWAP
REMIC Regular Interest. On each Distribution Date, the Trustee shall distribute
the aggregate Principal Funds with respect to the Group One Mortgage Loans first
to the Class 1-SW1 Interest until its principal balance is reduced to zero and
then sequentially to each of the other SWAP REMIC Regular Interests beginning
with the designation "1" in ascending order of their numerical class
designation, in equal amounts to each such class in such numerical designation,
until the principal balance of each such class is reduced to zero. All losses
with respect to the Group One Mortgage Loans shall be allocated among the SWAP
REMIC Regular Interests beginning with the designation "1" in the same manner
that principal distributions are allocated. On each Distribution Date, the
Trustee shall distribute the aggregate Principal Funds with respect to the Group
Two Mortgage Loans first to the Class 2-SW2 Interest until its principal balance
is reduced to zero and then sequentially to each of the other SWAP REMIC Regular
Interests beginning with the designation "2" in ascending order of their
numerical class designation, in equal amounts to each such class in such
numerical designation, until the principal balance of each such class is reduced
to zero. All losses with respect to the Group Two Mortgage Loans shall be
allocated among the SWAP REMIC Regular Interests beginning with the designation
"2" in the same manner that principal distributions are allocated. Subsequent
Recoveries with respect to the Group One and Group Two Mortgage Loans shall be
allocated in the reverse fashion from the manner in which losses are allocated.

     All payments received by the Lower Tier REMIC with respect to the SWAP
REMIC Regular Interests shall be paid to the Lower Tier REMIC Regular Interests
until the principal balance of all such interests have been reduced to zero and
any losses allocated to such interests have been reimbursed. Any excess amounts
shall be distributed to the Class LTR Interest. On each Distribution Date,
payments and losses shall be allocated among the Lower Tier REMIC Regular
Interests so that (i) each of the Lower Tier REMIC I Marker Interests shall have
a principal balance equal to 25% of the principal balance of the Corresponding
Certificates, (ii) the Class LTIX Interest has a principal balance equal to the
excess of (x) 50% of the remaining principal balance of the Mortgage Loans over
(y) the aggregate principal balance of the Lower Tier REMIC I Marker Interests
(if necessary to reflect an increase in overcollateralization, accrued and
unpaid interest on the Class LTIX interest may be added to its principal amount
to achieve this result) and (iii) the aggregate principal amount of the Class
LTII1A Interest, Class LTII1B Interest, Class LTII2A Interest, Class LTII2B
Interest and Class LTIIX Interest shall equal 50% of the remaining principal
balance of the Mortgage Loans. Distributions and losses allocated to the Lower
Tier REMIC Regular Interests described in clause (iii) of the preceding sentence
will be allocated among such Lower Tier REMIC Regular Interests in the following
manner: (x) such distributions shall be deemed made to such Lower Tier REMIC
Regular Interests first, so as to keep the principal balance of the each such
Lower Tier REMIC Regular Interest with "B" at the end of its designation equal
to 0.05% of the aggregate scheduled principal balance of the Mortgage Loans in
the related Mortgage Group and second, to such Lower Tier REMIC Regular
Interests with "A" at the end of its designation so that the uncertificated
principal balance of each such Lower Tier REMIC Regular Interest is equal to
0.05% of the

                                      -78-

<PAGE>

excess of (I) the aggregate scheduled principal balance of the Mortgage Loans in
the related Mortgage Group over (II) the aggregate principal balance of
Certificate Group One, in the case of the Class LTII1A Interest, or Certificate
Group Two, in the case of the Class LTII2A Interest (except that if 0.05% of any
such excess is greater than the principal amount of the related Lower Tier REMIC
II Marker Interest with "A" at the end of its designation, the least amount of
principal shall be distributed to each Lower Tier REMIC II Marker Interest with
"A" at the end of its designation such that the Lower Tier REMIC Subordinated
Balance Ratio is maintained) and finally, any remaining distributions of
principal to the Class LTIIX Interest and (y) such losses shall be allocated
among the Lower Tier REMIC Regular Interests described in clause (iii) of the
preceding sentence first, so as to keep the principal balance of the each such
Lower Tier REMIC Regular Interest with "B" at the end of its designation equal
to 0.05% of the aggregate scheduled principal balance of the Mortgage Loans in
the related Mortgage Group; second, to such Lower Tier REMIC Regular Interests
with "A" at the end of its designation so that the uncertificated principal
balance of each such Lower Tier REMIC Regular Interest is equal to 0.05% of the
excess of (I) the aggregate scheduled principal balance of the Mortgage Loans in
the related Mortgage Group over (II) the aggregate principal balance of
Certificate Group One, in the case of the Class LTII1A Interest, or Certificate
Group Two, in the case of the Class LTII2A Interest (except that if 0.05% of any
such excess is greater than the principal amount of the related Lower Tier REMIC
II Marker Interest with "A" at the end of its designation, the least amount of
losses shall be allocated to each Lower REMIC II Marker Interest with "A" at the
end of its designation such that the Lower Tier REMIC Subordinated Balance Ratio
is maintained) and finally, any remaining losses to the Class LTIIX Interest.
Notwithstanding the preceding two sentences, however, losses not allocated to
any Class of Certificates will not be allocated to any Lower Tier REMIC Regular
Interests. All computations with respect to the Lower Tier REMIC Regular
Interests shall be taken out to ten decimal places.

     Any available funds remaining in the Lower Tier REMIC on a Distribution
Date after distributions to the Lower Tier REMIC Regular Interests shall be
distributed to the Class R Certificates in respect of the Class LTR Interest.

     If on any Distribution Date the Certificate Principal Balance of any Class
of Certificates is increased pursuant to the last sentence of the definition of
"Certificate Principal Balance", then there shall be an equivalent increase in
the principal amounts of the Lower Tier REMIC Regular Interests, with such
increase allocated (before the making of distributions and the allocation of
losses on the Lower Tier REMIC Regular Interests on such Distribution Date)
among the Lower Tier REMIC Regular Interests so that, to the greatest extent
possible, (i) each of the Lower Tier REMIC I Marker Interests has a principal
balance equal to 25% of the principal balance of the Corresponding Certificates,
(ii) the Class LTIX Interest has a principal balance equal to the excess of (x)
50% of the remaining principal balance of the Mortgage Loans over (y) the
aggregate principal balance of the Lower Tier REMIC I Marker Interests and (iii)
the aggregate principal amount of the Lower Tier REMIC II Marker Interests and
the Class LTIIX Interest shall equal 50% of the remaining principal balance of
the Mortgage Loans. Allocations in connection with clause (iii) shall be made so
that, to the greatest extent possible, (a) the principal balance of each Lower
Tier REMIC II Marker Interest with "B" at the end of its designation equals
0.05% of the aggregate scheduled principal balance of the Mortgage Loans in
related Mortgage Group, (b) the principal balance of each Lower Tier REMIC II
Marker Interest with "A" at the end of its designation equals 0.05% of the
excess of (x) the aggregate scheduled principal balance of the Mortgage Loans in
related Mortgage Group over (y) the aggregate principal balance of Certificate
Group One in the case of the Class LTII1A Interest, or Certificate Group Two in
the case of the Class LTII2A Interest and (c) any remaining allocations are made
to the Class LTIIX Interest.

                                      -79-

<PAGE>

          (i) In the event that any REMIC provided for herein fails to qualify
as a REMIC, loses its status as a REMIC or incurs federal, state or local taxes
as a result of a prohibited transaction or prohibited contribution under the
REMIC Provisions due to the negligent performance by the Servicer of its duties
and obligations set forth herein, the Servicer shall indemnify the NIMs Insurer,
the Trustee and the Issuing Entity against any and all Losses resulting from
such negligence; provided, however, that the Servicer shall not be liable for
any such Losses attributable to the action or inaction of the Trustee, the
Depositor or the Holder of the residual interest in such REMIC, as applicable,
nor for any such Losses resulting from misinformation provided by the Holder of
the residual interest in such REMIC on which the Servicer has relied. The
foregoing shall not be deemed to limit or restrict the rights and remedies of
the Holder of the residual interest in such REMIC now or hereafter existing at
law or in equity. Notwithstanding the foregoing, however, in no event shall the
Servicer have any liability (1) for any action or omission that is taken in
accordance with and in compliance with the express terms of, or which is
expressly permitted by the terms of, this Agreement, (2) for any Losses other
than those arising out of a negligent performance by the Servicer of its duties
and obligations set forth herein, and (3) for any special or consequential
damages to Certificateholders (in addition to payment of principal and interest
on the Certificates).

          (j) In the event that any REMIC provided for herein fails to qualify
as a REMIC, loses its status as a REMIC, or incurs federal, state or local taxes
as a result of a prohibited transaction or prohibited contribution under the
REMIC Provisions due to the negligent performance by the Trustee of its duties
and obligations set forth herein, the Trustee shall indemnify the NIMs Insurer
and the Issuing Entity against any and all Losses resulting from such
negligence; provided, however, that the Trustee shall not be liable for any such
Losses attributable to the action or inaction of the Servicer, the Depositor or
the Holder of the residual interest in such REMIC, as applicable, nor for any
such Losses resulting from misinformation provided by the Holder of the residual
interest in such REMIC on which the Trustee has relied. The foregoing shall not
be deemed to limit or restrict the rights and remedies of the Holder of the
residual interest in such REMIC now or hereafter existing at law or in equity.
Notwithstanding the foregoing, however, in no event shall the Trustee have any
liability (1) for any action or omission that is taken in accordance with and in
compliance with the express terms of, or which is expressly permitted by the
terms of, this Agreement, (2) for any Losses other than those arising out of a
negligent performance by the Trustee of its duties and obligations set forth
herein, and (3) for any special or consequential damages to Certificateholders
(in addition to payment of principal and interest on the Certificates).

     SECTION 2.08. [RESERVED]

     SECTION 2.09. Covenants of the Servicer

     (a) The Servicer hereby covenants to each of the other parties to this
Agreement that the Servicer shall comply in the performance of its obligations
under this Agreement with all reasonable rules and requirements of the insurer
under each Required Insurance Policy.

     (b) In accordance with Accepted Servicing Practices the Servicer will fully
furnish (for the period it services the Mortgage Loans), in accordance with the
Fair Credit Reporting Act and its implementing regulations, accurate and
complete information (e.g., favorable and unfavorable) on its borrower credit
files to Equifax, Experian and Trans Union Credit Information Company on a
monthly basis.

     SECTION 2.10. [RESERVED]

                                      -80-

<PAGE>

     SECTION 2.11. Permitted Activities of the Issuing Entity

     The Issuing Entity is created for the object and purpose of engaging in the
Permitted Activities. In furtherance of the foregoing, the Trustee is hereby
authorized and directed to execute and deliver, on behalf of the Issuing Entity,
the Corridor Contracts, and to execute and deliver on behalf of the Issuing
Entity, and to perform the duties and obligations of the Issuing Entity under
the Corridor Contracts, an insurance and indemnity agreement with a NIMs Insurer
and any other agreement or instrument related thereto, in each case in such form
as the Depositor shall direct or shall approve in writing, the execution and
delivery of any such agreement by the Depositor to be conclusive evidence of its
approval thereof. In addition, the Supplemental Interest Trust Trustee is hereby
authorized and directed to execute and deliver, on behalf of the Supplemental
Interest Trust and the Swap Agreement, and to execute and deliver on behalf of
the Issuing Entity, and to perform the duties and obligations of the
Supplemental Interest Trust under any agreement or instrument related to the
Swap Agreement, in each case in such form as the Depositor shall direct or shall
approve in writing, the execution and delivery of any such agreement by the
Depositor to be conclusive evidence of its approval thereof.

     SECTION 2.12. Qualifying Special Purpose Entity

     For purposes of SFAS 140, the parties hereto intend that the Issuing Entity
shall be treated as a "qualifying special purpose entity" as such term is used
in SFAS 140 and any successor rule thereto and its power and authority as stated
in Section 2.11 of this Agreement shall be limited in accordance with paragraph
35 or SFAS 140.

     SECTION 2.13. Depositor Notification of NIM Notes

     The Depositor shall notify the Servicer and the Trustee in writing when NIM
Notes are issued and of the identity of the NIMs Insurer, if applicable, and
when all previously issued NIM Notes are no longer outstanding.

                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

     SECTION 3.01. Servicer to Service Mortgage Loans

     For and on behalf of the Certificateholders, the Servicer shall service and
administer the Mortgage Loans in accordance with Accepted Servicing Practices.
In connection with such servicing and administration, the Servicer shall have
full power and authority, acting alone and/or through subservicers as provided
in Section 3.02 hereof, to do or cause to be done any and all things that it may
deem necessary or desirable in connection with such servicing and
administration, including but not limited to, the power and authority, subject
to the terms hereof (i) to execute and deliver, on behalf of the
Certificateholders and the Trustee, customary consents or waivers and other
instruments and documents, (ii) to consent to transfers of any Mortgaged
Property and assumptions of the Mortgage Notes and related Mortgages (but only
in the manner provided in this Agreement), (iii) to collect any Insurance
Proceeds and other Liquidation Proceeds and (iv) subject to Section 3.12(a), to
effectuate foreclosure or other conversion of the ownership of the Mortgaged
Property securing any Mortgage Loan; provided that, subject to Section 6.03, the
Servicer shall not take any action that is inconsistent with or prejudices the

                                      -81-

<PAGE>

interests of the Issuing Entity or the Certificateholders in any Mortgage Loan
serviced by it under this Agreement or the rights and interests of the other
parties to this Agreement except as otherwise required by this Agreement or by
law. Notwithstanding anything in this Agreement to the contrary, the Servicer
shall not make or permit any modification, waiver or amendment of any term of
any Mortgage Loan which would cause any of the REMICs provided for herein to
fail to qualify as a REMIC or result in the imposition of any tax under Section
860G(a) or 860G(d) of the Code. The Servicer shall represent and protect the
interest of the Trust Fund in the same manner as it currently protects its own
interest in mortgage loans in its own portfolio in any claim, proceeding or
litigation regarding a Mortgage Loan, but in any case not in any manner that is
a lesser standard than that provided in the first sentence of this Section 3.01.
Without limiting the generality of the foregoing, the Servicer, in its own name
or in the name of the Depositor and the Trustee, is hereby authorized and
empowered by the Depositor and the Trustee, when the Servicer believes it
appropriate in its reasonable judgment, to execute and deliver, on behalf of the
Trustee, the Depositor, the Certificateholders or any of them, any and all
instruments of satisfaction or cancellation, or of partial or full release or
discharge, subordinations and all other comparable instruments, with respect to
the Mortgage Loans, and with respect to the Mortgaged Properties held for the
benefit of the Certificateholders. The Servicer shall prepare and deliver to the
Depositor and/or the Trustee such documents requiring execution and delivery by
any or all of them as are necessary or appropriate to enable the Servicer to
service and administer the Mortgage Loans, to the extent that the Servicer is
not permitted to execute and deliver such documents pursuant to the preceding
sentence. Upon receipt of such documents, the Depositor and/or the Trustee shall
execute such documents and deliver them to the Servicer. For purposes of this
Section 3.01, the Trustee hereby grants to the Servicer a limited power of
attorney in such form as shall be prepared by the Servicer and agreed to by the
Trustee and the Servicer to execute and file any and all documents necessary to
fulfill the obligations of the Servicer under this Section 3.01.

     Upon request of the Servicer, the Trustee shall furnish the Servicer with
any powers of attorney and other documents in form as provided to it necessary
or appropriate to enable the Servicer to service and administer the Mortgage
Loans. The Trustee shall not be responsible for and the Servicer shall indemnify
the Trustee for any action taken by the Servicer pursuant to the application of
any power of attorney to the extent indemnification by the Servicer is required
by Section 3.25 and provided that the Servicer shall have no obligation to
indemnify the Trustee for such action to the extent such action was taken
pursuant to and in accordance with specific written instructions from the
Trustee, which instructions are not based on Servicer's recommendations or
proposals. Notwithstanding anything contained herein to the contrary, the
Servicer shall not without the Trustee's written consent, hire or procure
counsel to represent the Trustee without indicating its representative capacity.

     The Servicer shall not be required to make any Advance or Servicing Advance
with respect to a Mortgage Loan that is 150 days or more delinquent.

     The Servicer and the Trustee shall have at least 10 days' notice of the
issuance of any NIM Notes.

     The Servicer shall deliver a list of Servicing Officers and specimen
signatures to the Trustee by the Closing Date.

     The Servicer further is authorized and empowered by the Trustee, on behalf
of the Certificateholders and the Trustee, in its own name or in the name of the
Sub-Servicer, when the Servicer or the Sub-Servicer, as the case may be,
believes it is appropriate in its best judgment to register any Mortgage Loan on
the MERS System, or cause the removal from the registration of any Mortgage Loan

                                      -82-

<PAGE>

on the MERS System, to execute and deliver, on behalf of the Trustee and the
Certificateholders or any of them, any and all instruments of assignment and
other comparable instruments with respect to such assignment or re-recording of
a Mortgage in the name of MERS, solely as nominee for the Trustee and its
successors and assigns. Any reasonable expenses incurred in connection with the
actions described in the preceding sentence or as a result of MERS discontinuing
or becoming unable to continue operations in connection with the MERS System,
shall be subject to withdrawal by the Servicer from the Collection Account
(provided that such expenses constitute "unanticipated expenses" within the
meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii)).

     SECTION 3.02. Servicing and Subservicing; Enforcement of the Obligations of
Servicer

          (a) The Servicer may arrange for the subservicing of any Mortgage Loan
by a subservicer, which may be an affiliate, pursuant to a subservicing
agreement (each, a "Subservicing Agreement"); provided, however, that (i) such
subservicing arrangement and the terms of the related Subservicing Agreement
must provide for the servicing of such Mortgage Loans in a manner consistent
with the servicing arrangements contemplated hereunder, (ii) that such agreement
would not result in a withdrawal or downgrading by any Rating Agency of the
ratings of any Certificates or any of the NIM Notes evidenced by a letter to
that effect delivered by each Rating Agency to the Depositor and the NIMs
Insurer and (iii) the NIMs Insurer shall have consented to such subservicing
agreement, which consent shall not be unreasonably withheld. Notwithstanding the
provisions of any Subservicing Agreement, any of the provisions of this
Agreement relating to agreements or arrangements between the Servicer and a
subservicer or reference to actions taken through a subservicer or otherwise,
the Servicer shall remain obligated and liable to the Depositor, the Trustee and
the Certificateholders for the servicing and administration of the Mortgage
Loans in accordance with the provisions of this Agreement without diminution of
such obligation or liability by virtue of such Subservicing Agreements or
arrangements or by virtue of indemnification from the subservicer and to the
same extent and under the same terms and conditions as if the Servicer alone
were servicing and administering the Mortgage Loans. Every Subservicing
Agreement entered into by the Servicer shall contain a provision giving any
successor servicer the option to terminate such agreement, with the consent of
the NIMs Insurer (which consent shall not be unreasonably withheld), in the
event a successor servicer is appointed. All actions of the each subservicer
performed pursuant to the related Subservicing Agreement shall be performed as
an agent of the Servicer with the same force and effect as if performed directly
by the Servicer. The Servicer shall deliver to the Trustee and the NIMs Insurer
copies of all Subservicing Agreements. The Trustee shall have no obligations,
duties or liabilities with respect to a subservicer, including, without
limitation, any obligation, duty or liability to monitor such subservicer or to
pay a Subservicer's fees and expenses.

          (b) For purposes of this Agreement, the Servicer shall be deemed to
have received any collections, recoveries or payments with respect to the
Mortgage Loans that are received by a subservicer regardless of whether such
payments are remitted by the subservicer to the Servicer.

          (c) The Servicer shall not permit a Subservicer to perform any
servicing responsibilities hereunder with respect to the Mortgage Loans unless
that Subservicer first agrees in writing with the Servicer to deliver an
Assessment of Compliance and an Accountant's Attestation in such manner and at
such times that permits that Servicer to comply with Section 3.17 of this
Agreement.

          (d) The Servicer may enter into a special servicing advisory agreement
with a holder of the Class R Certificate and/or one or more other class of
subordinated certificates issued by the Issuing Entity or of a net interest
margin trust holding certificates issued by the Issuing Entity and/or an advisor

                                      -83-

<PAGE>

designated by the holder of the Class R Certificate. Pursuant to such agreement,
the Servicer may provide such holder or advisor, in its capacity as special
servicing advisor, with loan-level information with respect to the Mortgage
Loans, and the holder of the Class R Certificate or the special servicing
advisor designated by the holder of the Class R Certificate may advise the
Servicer with respect to the commencement of foreclosure proceedings or other
actions to liquidate such Mortgage Loans and/or any other efforts to maximize
recoveries with respect to such Mortgage Loans.

     SECTION 3.03. Rights of the Depositor and the Trustee in Respect of the
Servicer

     Neither the Trustee nor the Depositor shall have any responsibility or
liability for any action or failure to act by the Servicer, and neither of them
is obligated to supervise the performance of the Servicer hereunder or
otherwise.

     SECTION 3.04. Trustee to Act as Servicer

     Subject to Sections 6.04 and 7.02, in the event that the Servicer shall for
any reason no longer be the servicer hereunder (including by reason of an Event
of Default), the Trustee or its designee shall, within a period of time not to
exceed ninety (90) days from the date of notice of termination or resignation,
thereupon assume all of the rights and obligations of the Servicer hereunder
arising thereafter (except that the Trustee shall not be (i) liable for losses
arising out of any acts or omissions of the predecessor servicer hereunder, (ii)
obligated to make Advances or Servicing Advances if it is prohibited from doing
so by applicable law, (iii) obligated to effectuate repurchases or substitutions
of Mortgage Loans hereunder, including pursuant to Section 2.02, 2.03 or 2.05
hereof, (iv) responsible for any expenses of the Servicer pursuant to Section
2.03 or (v) deemed to have made any representations and warranties hereunder,
including pursuant to Section 2.04 or the first paragraph of Section 6.02
hereof; provided, however that the Trustee (subject to clause (ii) above) or its
designee, in its capacity as the successor servicer, shall immediately assume
the terminated or resigning Servicer's obligation to make Advances and Servicing
Advances). No such termination or resignation shall affect any obligation of the
Servicer to pay amounts owed under this Agreement and to perform its duties
under this Agreement until its successor assumes all of its rights and
obligations hereunder. If the Servicer shall for any reason no longer be a
servicer (including by reason of any Event of Default), the Trustee (or any
other successor servicer) may, at its option, succeed to any rights and
obligations of the Servicer under any subservicing agreement in accordance with
the terms thereof; provided, however, that the Trustee (or any other successor
servicer) shall not incur any liability or have any obligations in its capacity
as servicer under a subservicing agreement arising prior to the date of such
succession unless it expressly elects to succeed to the rights and obligations
of the Servicer thereunder; and the Servicer shall not thereby be relieved of
any liability or obligations under the subservicing agreement arising prior to
the date of such succession. To the extent any costs or expenses, including
without limitation, Servicing Transfer Costs incurred by the Trustee in
connection with this Section 3.04 or Section 7.02, are not paid by the Servicer
pursuant to this Agreement within thirty (30) days of the date of the Trustee's
invoice thereof, such amounts shall be payable out of the Certificate Account;
provided that if the Servicer has been terminated by reason of an Event of
Default, the terminated servicer shall reimburse the Issuing Entity for any such
expense incurred by the Issuing Entity upon receipt of a reasonably detailed
invoice evidencing such expenses. If the Trustee is unwilling or unable to act
as servicer, the Trustee shall seek to appoint a successor servicer that is
eligible in accordance with the criteria specified in this Agreement and
reasonably acceptable to the NIMs Insurer.

                                      -84-
<PAGE>

     The Servicer shall, upon request of the Trustee, but at the expense of the
Servicer if the Servicer has been terminated by reason of an Event of Default,
deliver to the assuming party all documents and records relating to each
subservicing agreement and the Mortgage Loans then being serviced and otherwise
use its best efforts to effect the orderly and efficient transfer of the
subservicing agreement to the assuming party.

     SECTION 3.05. Collection of Mortgage Loan Payments; Collection Account;
Certificate Account

          (a) The Servicer shall make reasonable efforts in accordance with
Accepted Servicing Practices to collect all payments called for under the terms
and provisions of the Mortgage Loans to the extent such procedures shall be
consistent with this Agreement and the terms and provisions of any related
Required Insurance Policy. Consistent with the foregoing, the Servicer may in
its discretion (i) waive any late payment charge or, if applicable, any default
interest charge, or (ii) subject to Section 3.01, extend the due dates for
payments due on a Mortgage Note for a period not greater than 180 days;
provided, however, that any extension pursuant to clause (ii) above shall not
affect the amortization schedule of any Mortgage Loan for purposes of any
computation hereunder, except as provided below; provided, further, that the
NIMs Insurer's prior written consent shall be required for any modification,
waiver or amendment after the Cut-off Date if the aggregate number of
outstanding Mortgage Loans which have been modified, waived or amended exceeds
5% of the number of Mortgage Loans as of the Cut-Off Date. In the event of any
such arrangement pursuant to clause (ii) above, subject to Section 4.01, the
Servicer shall make any Advances on the related Mortgage Loan during the
scheduled period in accordance with the amortization schedule of such Mortgage
Loan without modification thereof by reason of such arrangements.
Notwithstanding the foregoing, in the event that any Mortgage Loan is in default
or, in the judgment of the Servicer, such default is reasonably foreseeable, the
Servicer, consistent with the standards set forth in Section 3.01, may also
waive, modify or vary any term of such Mortgage Loan (including modifications
that would change the Mortgage Rate, forgive the payment of principal or
interest or extend the final maturity date of such Mortgage Loan), accept
payment from the related Mortgagor of an amount less than the Stated Principal
Balance in final satisfaction of such Mortgage Loan, or consent to the
postponement of strict compliance with any such term or otherwise grant
indulgence to any Mortgagor (any and all such waivers, modifications, variances,
forgiveness of principal or interest, postponements, or indulgences collectively
referred to herein as "forbearance"), provided, however, that in determining
which course of action permitted by this sentence it shall pursue, the Servicer
shall adhere to the standards of Section 3.01. The Servicer's analysis
supporting any forbearance and the conclusion that any forbearance meets the
standards of Section 3.01 shall be reflected in writing in the Mortgage File.

          (b) The Servicer will not waive any Prepayment Charge or portion
thereof unless, (i) the enforceability thereof shall have been limited by
bankruptcy, insolvency, moratorium, receivership or other similar laws relating
to creditors' rights generally or is otherwise prohibited by law, or (ii) the
collectability thereof shall have been limited due to acceleration in connection
with a foreclosure or other involuntary payment, or (iii) the Servicer has not
been provided with information sufficient to enable it to collect the Prepayment
Charge, or (iv) in the Servicer's reasonable judgment as described in Section
3.01 hereof, (x) such waiver relates to a default or a reasonably foreseeable
default, (y) such waiver would maximize recovery of total proceeds taking into
account the value of such Prepayment Charge and related Mortgage Loan and (z)
doing so is standard and customary in servicing similar Mortgage Loans
(including any waiver of a Prepayment Charge in connection with a refinancing of
a Mortgage Loan that is related to a default or a reasonably foreseeable
default), or (v) the collection of the Prepayment Charge or of a similar type of
prepayment premium would be considered "predatory" or "illegal" pursuant to

                                      -85-

<PAGE>

written guidance published by any applicable federal, state or local regulatory
authority having jurisdiction over such matters or has been challenged by any
such authority, or (vi) only to the extent that the Depositor has notified the
Servicer that there are no NIM Notes outstanding, there is a certified class
action in which a similar type of prepayment premium is being challenged. Except
as provided in the preceding sentence, in no event will the Servicer waive a
Prepayment Charge in connection with a refinancing of a Mortgage Loan that is
not related to a default or a reasonably foreseeable default. If the Servicer
waives or does not collect all or a portion of a Prepayment Charge relating to a
Principal Prepayment in full or in part due to any action or omission of the
Servicer, other than as provided above, the Servicer shall deposit the amount of
such Prepayment Charge (or such portion thereof as had been waived for deposit)
into the Collection Account for distribution in accordance with the terms of
this Agreement.

          (c) The Servicer shall not be required to institute or join in
litigation with respect to collection of any payment (whether under a Mortgage,
Mortgage Note or otherwise or against any public or governmental authority with
respect to a taking or condemnation) if it reasonably believes that enforcing
the provision of the Mortgage or other instrument pursuant to which such payment
is required is prohibited by applicable law.

          (d) The Servicer shall establish and initially maintain, on behalf of
Trustee for the benefit of the Certificateholders, a Collection Account. The
Servicer shall deposit into such Collection Account daily, within two (2)
Business Days of receipt thereof, in immediately available funds, the following
payments and collections received or made by it on and after the Cut-off Date
with respect to the Mortgage Loans:

          (i) all payments on account of principal, including Principal
     Prepayments, on the Mortgage Loans, other than principal due on the
     Mortgage Loans on or prior to the Cut-off Date;

          (ii) all payments on account of interest on the Mortgage Loans net of
     the Servicing Fee permitted under Section 3.15, other than (x) interest due
     on the Mortgage Loans on or prior to the Cut-off Date and (y) Prepayment
     Interest Excess;

          (iii) all Liquidation Proceeds, other than proceeds to be applied to
     the restoration or repair of the Mortgaged Property or released to either
     the Mortgagor or the holder of a senior lien on the Mortgaged Property in
     accordance with the Servicer's normal servicing procedures;

          (iv) all Subsequent Recoveries;

          (v) all Compensating Interest;

          (vi) any amount required to be deposited by the Servicer pursuant to
     Section 3.05(f) in connection with any losses on Permitted Investments;

          (vii) any amounts required to be deposited by the Servicer pursuant to
     Section 3.10 hereof;

          (viii) all Advances made by the Servicer pursuant to Section 4.01;

          (ix) all Prepayment Charges; and

                                      -86-

<PAGE>

          (x) any other amounts required to be deposited hereunder.

          The foregoing requirements for remittance by the Servicer into the
Collection Account shall be exclusive, it being understood and agreed that,
without limiting the generality of the foregoing, all servicing related fees,
including late payment charges, insufficient funds charges and payments in the
nature of assumption fees (i.e. fees related to the assumption of a Mortgage
Loan upon the purchase of the related Mortgaged Property, modification fees,
extension fees and other similar ancillary fees and charges (other than
Prepayment Charges)) if collected, and any Prepayment Interest Excess need not
be remitted by the Servicer. Rather, such fees and charges may be retained by
the Servicer as additional servicing compensation. In the event that the
Servicer shall remit any amount not required to be remitted and not otherwise
subject to withdrawal pursuant to Section 3.08 hereof, it may at any time
withdraw or direct the Trustee, or such other institution maintaining the
Collection Account, to withdraw such amount from the Collection Account, any
provision herein to the contrary notwithstanding. The Servicer shall maintain
adequate records with respect to all withdrawals made pursuant to this Section.
All funds deposited in the Collection Account shall be held in trust for the
Certificateholders until withdrawn in accordance with Section 3.08. In no event
shall the Trustee incur liability for withdrawals from the Collection Account at
the direction of the Servicer.

          The Servicer shall give notice to the Trustee of the location of the
Collection Account maintained by it when established and prior to any change
thereof. Not later than twenty days after each Distribution Date, the Servicer
shall make available to the Trustee and the Depositor the most current available
bank statement for the Collection Account. Copies of such statement shall be
provided by the Trustee to any Certificateholder and to any Person identified to
the Trustee as a prospective transferee of a Certificate, upon request at the
expense of the requesting party, provided such statement is delivered by the
Servicer to the Trustee.

          (e) The Trustee shall establish and maintain, on behalf of the
Certificateholders, the Certificate Account. The Trustee shall, promptly upon
receipt, deposit or cause to be deposited in the Certificate Account and retain
therein the following:

          (i) the aggregate amount withdrawn by the Servicer from the Collection
Account for deposit in the Certificate Account;

          (ii) the Purchase Price and any Substitution Adjustment Amount;

          (iii) any amount required to be deposited by the Trustee pursuant to
     Section 3.05(f) in connection with any losses on Permitted Investments; and

          (iv) the Optional Termination Amount paid by the winning bidder at the
     Auction or by the Servicer or one of its affiliates pursuant to Section
     9.01.

     Any amounts received by the Trustee prior to 4:00 p.m. New York City time
(or such earlier deadline for investment in the Permitted Investments designated
by the Trustee) which are required to be deposited in the Certificate Account by
the Servicer may be invested in Permitted Investments on the Business Day on
which they were received. The foregoing requirements for remittance by the
Servicer and deposit by the Servicer into the Certificate Account shall be
exclusive. If the Servicer fails to remit any funds due by the time designated
herein, the Servicer shall pay to the Trustee, for its own account, interest
accrued on such funds at the prime rate as set forth in The Wall Street Journal
from and including

                                      -87-

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the applicable due date, to but excluding the day such funds are paid to the
Trustee. In the event that the Servicer shall remit any amount not required to
be remitted and not otherwise subject to withdrawal pursuant to Section 3.08
hereof, it may at any time withdraw such amount from the Certificate Account,
any provision herein to the contrary notwithstanding. All funds deposited in the
Certificate Account shall be held by the Trustee in trust for the
Certificateholders until disbursed in accordance with this Agreement or
withdrawn in accordance with Section 3.08. In no event shall the Trustee incur
liability for withdrawals from the Certificate Account at the direction of the
Servicer. The Trustee shall give notice to the Servicer of the location of the
Certificate Account maintained by it when established and prior to any change
thereof.

          (f) Each institution that maintains the Collection Account shall, and
each institution that maintains the Certificate Account may but shall not be
required to, invest the funds in each such account, as directed by the Servicer
or the Trustee, as applicable, in writing, in Permitted Investments, which shall
mature not later than (i) in the case of the Collection Account, the Business
Day preceding the Servicer Remittance Date (except that if such Permitted
Investment is an obligation of the institution that maintains such Collection
Account or is otherwise immediately available, then such Permitted Investment
shall mature not later than the Servicer Remittance Date) and (ii) in the case
of the Certificate Account, the Business Day immediately preceding the first
Distribution Date that follows the date of such investment (except that if such
Permitted Investment is an obligation of the institution that maintains such
Certificate Account or is otherwise immediately available, then such Permitted
Investment shall mature not later than such Distribution Date) and, in each
case, shall not be sold or disposed of prior to its maturity. All such Permitted
Investments shall be made in the name of the Trustee for the benefit of the
Certificateholders. All income and gain net of any losses realized from amounts
on deposit in the Collection Account shall be for the benefit of the Servicer as
servicing compensation and shall be remitted to it monthly as provided herein.
The amount of any losses incurred in the Collection Account in respect of any
such investments shall be deposited by the Servicer in the Collection Account
out of the Servicer's own funds immediately as realized. All income and gain net
of any losses realized from amounts on deposit in the Certificate Account shall
be for the benefit of the Trustee and shall be remitted to or withdrawn by it
monthly as provided herein. The amount of any losses incurred in the Certificate
Account in respect of any such investments shall be deposited by the Trustee in
the Certificate Account out of the Trustee's own funds immediately as realized.

     SECTION 3.06. Collection of Taxes, Assessments and Similar Items; Escrow
Accounts

     To the extent required by the related Mortgage Note, the Servicer shall
establish and maintain one or more accounts (each, an "Escrow Account") and
deposit and retain therein all collections from the Mortgagors (or advances by
the Servicer) for the payment of taxes, assessments, hazard insurance premiums
or comparable items for the account of the Mortgagors. Nothing herein shall
require the Servicer to compel a Mortgagor to establish an Escrow Account in
violation of applicable law.

     Withdrawals of amounts so collected from the Escrow Accounts may be made
only to effect timely payment of taxes, assessments, hazard insurance premiums,
condominium or PUD association dues, or comparable items, to reimburse the
Servicer out of related collections for any payments made pursuant to Sections
3.01 hereof (with respect to taxes and assessments, dues or comparable items and
insurance premiums) and 3.10 hereof (with respect to hazard insurance), to
refund to any Mortgagors any sums as may be determined to be overages, to pay
interest, if required by law or the terms of the related Mortgage or Mortgage
Note, to Mortgagors on balances in the Escrow Account to withdraw funds
deposited in error or amounts previously deposited but returned as unpaid due to
a "not sufficient funds"

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<PAGE>

or other denial by the related Mortgagor's banking institution or to clear and
terminate the Escrow Account at the termination of this Agreement in accordance
with Section 9.01 hereof. The Escrow Accounts shall not be a part of the Trust
Fund.

     SECTION 3.07. Access to Certain Documentation and Information Regarding the
Mortgage Loans

     Upon reasonable advance notice in writing if required by federal
regulation, the Servicer will provide to each Certificateholder that is a
savings and loan association, bank or insurance company certain reports and
reasonable access to information and documentation regarding the Mortgage Loans
sufficient to permit such Certificateholder to comply with applicable
regulations of the OTS or other regulatory authorities with respect to
investment in the Certificates; provided, that the Servicer shall be entitled to
be reimbursed by each such Certificateholder for actual expenses incurred by the
Servicer in providing such reports and access.

     The Servicer may from time to time provide the Depositor, and any Person
designated by the Depositor, with reports and information regarding the Mortgage
Loans, including without limitation, information requested by the Depositor or
an originator of the Mortgage Loans for required institutional risk control. In
addition, subject to limitations of applicable privacy laws, the Servicer may
make public information regarding performance of the Mortgage Loans.

     SECTION 3.08. Permitted Withdrawals from the Collection Account and
Certificate Account

          (a) The Servicer may from time to time, make withdrawals from the
Collection Account for the following purposes:

          (i) to pay to the Servicer (to the extent not previously paid to or
withheld by the Servicer), as servicing compensation in accordance with Section
3.15, that portion of any payment of interest that equals the Servicing Fee for
the period with respect to which such interest payment was made, and, as
additional servicing compensation, those other amounts set forth in Section
3.15;

          (ii) to reimburse the Servicer (or the Trustee as successor servicer)
for Advances made by it (or to reimburse the Advancing Person for Advances made
by it) with respect to the Mortgage Loans, such right of reimbursement pursuant
to this subclause (ii) being limited to amounts received on particular Mortgage
Loan(s) (including, for this purpose, Liquidation Proceeds (which include
Condemnation Proceeds and Insurance Proceeds)) that represent late recoveries of
payments of principal and/or interest on such particular Mortgage Loan(s) in
respect of which any such Advance was made;

          (iii) to reimburse the Servicer for any Non-Recoverable Advance
previously made and any Non-Recoverable Servicing Advances previously made to
the extent that, in the case of Non-Recoverable Servicing Advances,
reimbursement therefor constitutes "unanticipated expenses" within the meaning
of Treasury Regulation Section 1.860G-1(b)(3)(ii);

          (iv) to pay to the Servicer earnings on or investment income with
respect to funds in or credited to the Collection Account;

          (v) to reimburse the Servicer from Insurance Proceeds for Insured
Expenses covered by the related Insurance Policy;

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<PAGE>

          (vi) [Reserved];

          (vii) to pay the Servicer (or the Trustee as successor servicer) any
unpaid Servicing Fees and to reimburse it for any unreimbursed Servicing
Advances (to the extent that reimbursement for Servicing Advances would
constitute an "unanticipated expense" within the meaning of Treasury Regulation
Section 1.860G-1(b)(3)(ii)), the Servicer's right to reimbursement of Servicing
Advances pursuant to this subclause (vii) with respect to any Mortgage Loan
being limited to amounts received on particular Mortgage Loan(s)(including, for
this purpose, Liquidation Proceeds and purchase and repurchase proceeds and
including any Subsequent Recoveries related to any Liquidated Loan) that
represent late recoveries of the payments for which such advances were made
pursuant to Section 3.01 or Section 3.06;

          (viii) to pay to the Depositor or the Servicer, as applicable, with
respect to each Mortgage Loan or property acquired in respect thereof that has
been purchased pursuant to Section 2.02, 2.03 or 3.12, all amounts received
thereon and not taken into account in determining the related Stated Principal
Balance of such repurchased Mortgage Loan;

          (ix) to reimburse the Servicer, the Trustee or the Depositor for
expenses incurred by any of them in connection with the Mortgage Loans or the
Certificates and reimbursable pursuant to Section 3.04, Section 3.25 or Section
6.03 hereof provided that reimbursement therefor would constitute
"unanticipated" expenses within the meaning of Treasury Regulation Section
1.860G-1(b)(3)(ii);

          (x) to reimburse the Trustee for enforcement expenses reasonably
incurred in respect of a breach or defect giving rise to the purchase obligation
in Section 2.03 that were incurred in the Purchase Price of the Mortgage Loans
including any expenses arising out of the enforcement of the purchase
obligation; provided that any such expenses will be reimbursable under this
subclause (x) only to the extent that such expenses would constitute
"unanticipated expenses" within the meaning of Treasury Regulation Section
1.860G-1(b)(3)(ii) if paid by one of the REMICs provided for herein;

          (xi) to pay the Servicer any unpaid Servicing Fees for any Mortgage
Loan upon such Mortgage Loan being charged off and upon termination of the
obligations of the Servicer;

          (xii) to withdraw pursuant to Section 3.05 any amount deposited in the
Collection Account and not required to be deposited therein; and

          (xiii) to clear and terminate the Collection Account upon termination
of this Agreement pursuant to Section 9.01 hereof.

     In addition, the Servicer will use commercially reasonable efforts to cause
to be withdrawn from the Collection Account no later than 2:30 p.m. Eastern
Time, but in any case no later than 4:00 p.m. Eastern Time on the Servicer
Remittance Date, the Interest Funds and the Principal Funds (for this purpose
only, neither Interest Funds nor Principal Funds shall include a deduction for
any amount reimbursable to the Trustee unless such amounts have actually been
reimbursed from such funds at the discretion of the Servicer), to the extent on
deposit, and such amount shall be deposited in the Certificate Account;
provided, however, if the Trustee does not receive such Interest Funds and
Principal Funds on the Servicer Remittance Date, the Servicer shall pay, out of
its own funds, interest on such amount at a rate equal to the "prime rate" as
published by The Wall Street Journal at such time for each date or part thereof.

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<PAGE>

     The Servicer shall keep and maintain separate accounting, on a Mortgage
Loan by Mortgage Loan basis, for the purpose of justifying any withdrawal from
the Collection Account.

     The Servicer shall provide written notification to the Trustee on or prior
to the next succeeding Servicer Remittance Date upon making any withdrawals from
the Collection Account pursuant to subclauses (iii) and (vii) above.

     Unless otherwise specified, any amounts reimbursable to the Servicer or the
Trustee from amounts on deposit in the Collection Account or the Certificate
Accounts shall be deemed to come from first, Interest Funds, and thereafter,
Principal Funds for the related Distribution Date.

          (b) The Trustee shall withdraw funds from the Certificate Account for
distribution to the Certificateholders in the manner specified in this Agreement
(and shall withhold from the amounts so withdrawn, the amount of any taxes that
it is authorized to retain pursuant to this Agreement). In addition, prior to
making such distributions to the Certificateholders, the Trustee may from time
to time make withdrawals from the Certificate Account for the following
purposes:

          (i) to withdraw pursuant to Section 3.05 any amount deposited in the
Certificate Account and not required to be deposited therein;

          (ii) to clear and terminate the Certificate Account upon termination
of the Agreement pursuant to Section 9.01 hereof (after paying all amounts
necessary to the Trustee or the Servicer in connection with any such
termination);

          (iii) to pay to the Trustee for any fees, expenses and indemnification
reimbursable pursuant to this Agreement, including without limitation Sections
3.04, 6.03, 8.05 and 8.06 hereof; and

          (iv) to pay to the Trustee earnings on or investment income with
respect to funds in or credited to the Certificate Account.

     SECTION 3.09. [RESERVED]

     SECTION 3.10. Maintenance of Hazard Insurance

     The Servicer shall cause to be maintained, for each first lien Mortgage
Loan, hazard insurance with extended coverage in an amount, to the extent
permitted by applicable law, that is at least equal to the lesser of (i) the
estimated replacement value of the improvements that are part of such Mortgaged
Property which may be the last known coverage, or (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan and (b) an amount such that
the proceeds of such policy shall be sufficient to prevent the related Mortgagor
and/or mortgagee from becoming a co-insurer or (iii) the amount required under
applicable HUD/FHA regulations. Each such policy of standard hazard insurance
shall contain, or have an accompanying endorsement that contains, a standard
mortgagee clause. The Servicer shall also cause flood insurance to be maintained
on property acquired upon foreclosure or deed in lieu of foreclosure of any
Mortgage Loan, to the extent required under the standards described below.
Pursuant to Section 3.05 hereof, any amounts collected by the Servicer under any
such policies (other than the amounts to be applied to the restoration or repair
of the related Mortgaged Property or property thus acquired or amounts released
to the Mortgagor in accordance with the Servicer's normal servicing procedures)
shall be deposited in the Collection Account. Any cost incurred by the Servicer
in

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<PAGE>

maintaining any such insurance shall not, for the purpose of calculating monthly
distributions to the Certificateholders or remittances to the Trustee for their
benefit, be added to the principal balance of the Mortgage Loan, notwithstanding
that the terms of the Mortgage Loan so permit. Such costs shall be recoverable
by the Servicer out of late payments by the related Mortgagor or out of
Liquidation Proceeds to the extent and as otherwise permitted by Section 3.08
hereof. It is understood and agreed that no earthquake or other additional
insurance is to be required of any Mortgagor or maintained on property acquired
in respect of a Mortgage other than pursuant to such applicable laws and
regulations as shall at any time be in force and as shall require such
additional insurance. If a first lien Mortgaged Property is located at the time
of origination of the Mortgage Loan in a federally designated special flood
hazard area and such area is participating in the national flood insurance
program, the Servicer shall cause flood insurance to be maintained with respect
to such Mortgage Loan. Such flood insurance shall be in an amount equal to the
lesser of (i) the outstanding principal balance of the related Mortgage Loan,
(ii) the estimated replacement value of the improvements that are part of such
Mortgaged Property which may be the last known coverage, or (iii) the maximum
amount of such insurance available for the related Mortgaged Property under the
Flood Disaster Protection Act of 1973, as amended.

     In the event that the Servicer shall obtain and maintain a blanket policy
insuring against hazard losses on all of the Mortgage Loans, it shall
conclusively be deemed to have satisfied its obligations as set forth in the
first sentence of this Section 3.10, it being understood and agreed that such
policy may contain a deductible clause on terms substantially equivalent to
those commercially available and maintained by comparable servicers. If such
policy contains a deductible clause, the Servicer shall, in the event that there
shall not have been maintained on the related Mortgaged Property a policy
complying with the first sentence of this Section 3.10, and there shall have
been a loss that would have been covered by such policy, deposit in the
Collection Account the amount not otherwise payable under the blanket policy
because of such deductible clause. In connection with its activities as servicer
of the Mortgage Loans, the Servicer agrees to present, on behalf of itself, the
Depositor and the Trustee for the benefit of the Certificateholders, claims
under any such blanket policy.

     SECTION 3.11. Enforcement of Due-On-Sale Clauses; Assumption Agreements

     When a Mortgaged Property has been or is about to be conveyed by the
Mortgagor, the Servicer shall, except as set forth below, to the extent it has
knowledge of such conveyance or prospective conveyance, exercise its rights to
accelerate the maturity of the related Mortgage Loan under any "due-on-sale"
clause contained in the related Mortgage or Mortgage Note; provided, however,
that the Servicer shall not exercise any such right if the "due-on-sale" clause,
in the reasonable belief of the Servicer, is not enforceable under applicable
law; provided, further, that the Servicer shall not take any action in relation
to the enforcement of any "due-on-sale" clause that would adversely affect or
jeopardize coverage under any Required Insurance Policy. In such event, the
Servicer shall make reasonable efforts to enter into an assumption and
modification agreement with the Person to whom such property has been or is
about to be conveyed, pursuant to which such Person becomes liable under the
Mortgage Note and, unless prohibited by applicable law or the Mortgage, the
Mortgagor remains liable thereon. If the foregoing is not permitted under
applicable law, the Servicer is authorized to enter into a substitution of
liability agreement with such Person, pursuant to which the original Mortgagor
is released from liability and such Person is substituted as Mortgagor and
becomes liable under the Note. In addition to the foregoing, the Servicer shall
not be required to enforce any "due-on-sale" clause in accordance with Accepted
Servicing Practices, if in the reasonable judgment of the Servicer not entering
into an assumption and modification agreement with a Person to whom such
property shall be conveyed and releasing the original Mortgagor from liability
would be in the best interests of the Certificateholders. The Mortgage Loan, as
assumed,

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<PAGE>

shall conform in all respects to the requirements, representations and
warranties of this Agreement. The Servicer shall notify the Trustee that any
such assumption or substitution agreement has been completed by forwarding to
the Trustee the original copy of such assumption or substitution agreement
(indicating the Mortgage File to which it relates), which copy shall be added by
the Trustee to the related Mortgage File and which shall, for all purposes, be
considered a part of such Mortgage File to the same extent as all other
documents and instruments constituting a part thereof. The Servicer shall be
responsible for recording any such assumption or substitution agreements. In
connection with any such assumption or substitution agreement, the Monthly
Payment on the related Mortgage Loan shall not be changed but shall remain as in
effect immediately prior to the assumption or substitution, the stated maturity
or outstanding principal amount of such Mortgage Loan shall not be changed nor
shall any required monthly payments of principal or interest be deferred or
forgiven. Any fee collected by the Servicer for consenting to any such
conveyance or entering into an assumption or substitution agreement shall be
retained by or paid to the Servicer as additional servicing compensation.

     Notwithstanding the foregoing paragraph or any other provision of this
Agreement, the Servicer shall not be deemed to be in default, breach or any
other violation of its obligations hereunder by reason of any assumption of a
Mortgage Loan by operation of law or any transfer or assumption which the
Servicer reasonably believes, in accordance with Accepted Servicing Practices,
it is restricted by law from preventing, for any reason whatsoever.

     SECTION 3.12. Realization Upon Defaulted Mortgage Loans; Determination of
Excess Proceeds; Special Loss Mitigation

          (a) The Servicer shall use reasonable efforts consistent with the
servicing standard set forth in Section 3.01 to foreclose upon or otherwise
comparably convert the ownership of properties securing such of the Mortgage
Loans as come into and continue in default and as to which no satisfactory
arrangements can be made for collection of Delinquent payments. In connection
with such foreclosure or other conversion, the Servicer shall follow such
practices and procedures as it shall deem necessary or advisable and as shall be
normal and usual in its general mortgage servicing activities and the
requirements of the insurer under any Required Insurance Policy; provided,
however, that the Servicer shall not be required to expend its own funds in
connection with the restoration of any property that shall have suffered damage
due to an uninsured cause unless it shall determine (i) that such restoration
will increase the proceeds of liquidation of the Mortgage Loan after
reimbursement to itself of such expenses and (ii) that such expenses will be
recoverable to it through Liquidation Proceeds (respecting which it shall have
priority for purposes of withdrawals from the Collection Account pursuant to
Section 3.08 hereof). The Servicer shall be responsible for all other costs and
expenses incurred by it in any such proceedings; provided, however, that it
shall be entitled to reimbursement thereof from the proceeds of liquidation of
the related Mortgaged Property and, if applicable, as a Non-Recoverable
Servicing Advance, as contemplated in Section 3.08 hereof.

     With respect to any REO Property, the deed or certificate of sale shall be
taken in the name of the Trustee, on behalf of the Certificateholders, or its
nominee (which nominee shall not be the Servicer). Pursuant to its efforts to
sell such REO Property, the Servicer shall either itself or through an agent
selected by the Servicer protect and conserve such REO Property in the same
manner and to such extent as is customary in the locality where such REO
Property is located and may, incident to its conservation and protection of the
interests of the Certificateholders, rent the same, or any part thereof, as the
Servicer deems to be in the best interest of the Servicer and the
Certificateholders for the period prior to the sale of such REO Property. The
Servicer or an Affiliate thereof may receive usual and customary real estate

                                      -93-

<PAGE>

referral fees for real estate brokers in connection with the listing and
disposition of REO Property. The Servicer shall prepare a statement with respect
to each REO Property that has been rented showing the aggregate rental income
received and all expenses incurred in connection with the management and
maintenance of such REO Property at such times as is necessary to enable the
Servicer to comply with the reporting requirements of the REMIC Provisions. The
net monthly rental income, if any, from such REO Property shall be deposited in
the Collection Account no later than the close of business on each Determination
Date. The Servicer shall perform the tax reporting and withholding related to
foreclosures, abandonments and cancellation of indebtedness income as specified
by Sections 1445, 6050J and 6050P of the Code by preparing and filing such tax
and information returns, as may be required.

     In the event that the Issuing Entity acquires any Mortgaged Property as
aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Servicer shall dispose of such Mortgaged Property prior to
the expiration of three years from the end of the year of its acquisition by the
Issuing Entity or, at the expense of the Issuing Entity, obtain, in accordance
with applicable procedures for obtaining an automatic extension of the grace
period, more than sixty (60) days prior to the day on which such three-year
period would otherwise expire, an extension of the three-year grace period, in
which case such property must be disposed of prior to the end of such extension,
unless the Trustee and the NIMs Insurer shall have been supplied with an Opinion
of Counsel addressed to the Trustee (such Opinion of Counsel not to be an
expense of the Trustee or the NIMs Insurer), to the effect that the holding by
the Issuing Entity of such Mortgaged Property subsequent to such three-year
period or extension will not result in the imposition of taxes on "prohibited
transactions" of the Issuing Entity or any of the REMICs provided for herein as
defined in section 860F of the Code or cause any of the REMICs provided for
herein to fail to qualify as a REMIC at any time that any Certificates are
outstanding, in which case the Issuing Entity may continue to hold such
Mortgaged Property (subject to any conditions contained in such Opinion of
Counsel). Notwithstanding any other provision of this Agreement, no Mortgaged
Property acquired by the Issuing Entity shall be held, rented (or allowed to
continue to be rented) or otherwise used for the production of income by or on
behalf of the Issuing Entity in such a manner or pursuant to any terms that
would (i) cause such Mortgaged Property to fail to qualify as "foreclosure
property" within the meaning of section 860G(a)(8) of the Code or (ii) subject
the Issuing Entity or any REMIC provided for herein to the imposition of any
federal, state or local income taxes on the income earned from such Mortgaged
Property under section 860G(c) of the Code or otherwise, unless the Servicer or
the Depositor has agreed to indemnify and hold harmless the Trustee and the
Issuing Entity with respect to the imposition of any such taxes. The Servicer
shall have no liability for any losses resulting from a foreclosure on a second
lien Mortgage Loan in connection with the foreclosure of the related first lien
mortgage loan that is not a Mortgage Loan if the Servicer does not receive
notice of such foreclosure action.

     The decision of the Servicer to foreclose on a defaulted Mortgage Loan
shall be subject to a determination by the Servicer that the proceeds of such
foreclosure would exceed the costs and expenses of bringing such a proceeding.
The income earned from the management of any Mortgaged Properties acquired
through foreclosure or other judicial proceeding, net of reimbursement to the
Servicer for expenses incurred (including any property or other taxes) in
connection with such management and net of unreimbursed Servicing Fees,
Advances, Servicing Advances and any management fee paid or to be paid with
respect to the management of such Mortgaged Property, shall be applied to the
payment of principal of, and interest on, the related defaulted Mortgage Loans
(with interest accruing as though such Mortgage Loans were still current) and
all such income shall be deemed, for all purposes in this Agreement, to be
payments on account of principal and interest on the related Mortgage Notes and
shall be deposited into the Collection Account. To the extent the income
received during a Prepayment Period is in excess of the

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<PAGE>

amount attributable to amortizing principal and accrued interest at the related
Mortgage Rate on the related Mortgage Loan, such excess shall be considered to
be a partial Principal Prepayment for all purposes hereof.

     Notwithstanding the foregoing provisions of this Section 3.12 or any other
provision of this Agreement, with respect to any Mortgage Loan as to which the
assistant vice president for foreclosures or the vice president of default
management of the Servicer has actual knowledge (which shall not be presumed due
to any documents received by the Servicer) of, the presence of any toxic or
hazardous substance on the related Mortgaged Property, the Servicer shall not,
on behalf of the Trustee, either (i) obtain title to such Mortgaged Property as
a result of or in lieu of foreclosure or otherwise, or (ii) otherwise acquire
possession of, or take any other action with respect to, such Mortgaged
Property, if, as a result of any such action, the Trustee, the Issuing Entity or
the Certificateholders would be considered to hold title to, to be a
"mortgagee-in-possession" of, or to be an "owner" or "operator" of such
Mortgaged Property within the meaning of the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended from time to time,
or any comparable law, unless the Servicer believes, based on its reasonable
judgment and a report prepared by a Person who regularly conducts environmental
audits using customary industry standards, that:

     (1) such Mortgaged Property is in material compliance with applicable
environmental laws or, if not, that it would be in the best economic interest of
the Issuing Entity to take such actions as are necessary to bring the Mortgaged
Property into compliance therewith; and

     (2) it is probable that there are no circumstances present at such
Mortgaged Property relating to the use, management or disposal of any hazardous
substances, hazardous materials, hazardous wastes, or petroleum-based materials
for which additional investigation, testing, monitoring, containment, clean-up
or remediation could be required under any federal, state or local law or
regulation, or that if any such materials are present for which such action
could be required, that it would be in the best economic interest of the Issuing
Entity to take such actions with respect to the affected Mortgaged Property.

     The Servicer shall forward a copy of the environmental audit report to the
Depositor and the Trustee. The cost of the environmental audit report
contemplated by this Section 3.12 shall be advanced by the Servicer, subject to
the Servicer's right to be reimbursed therefor from the Collection Account, such
right of reimbursement being prior to the rights of Certificateholders to
receive any amount in the Collection Account received in respect of the affected
Mortgage Loan or other Mortgage Loans.

     If the Servicer determines, as described above, that it is in the best
economic interest of the Issuing Entity to take such actions as are necessary to
bring any such Mortgaged Property into compliance with applicable environmental
laws, or to take such action with respect to the containment, clean-up or
remediation of hazardous substances, hazardous materials, hazardous wastes or
petroleum-based materials affecting any such Mortgaged Property, then the
Servicer may take such action as it deems to be in the best economic interest of
the Issuing Entity; provided that any amounts disbursed by the Servicer pursuant
to this Section 3.12 shall constitute Advances. The cost of any such compliance,
containment, clean-up or remediation shall be advanced by the Servicer, subject
to the Servicer's right to be reimbursed therefor from the Collection Account,
such right of reimbursement being prior to the rights of Certificateholders to
receive any amount in the Collection Account received in respect of the affected
Mortgage Loan or other Mortgage Loans. If the Servicer decides not to take such
action, it may not obtain title to such Mortgaged Property.

                                      -95-

<PAGE>

     The Liquidation Proceeds from any liquidation of a Mortgage Loan, net of
any payment to the Servicer as provided above, shall be deposited in the
Collection Account on the next succeeding Determination Date following receipt
thereof for distribution on the related Distribution Date.

     The proceeds of any Liquidated Loan, as well as any recovery resulting from
a partial collection of Liquidation Proceeds, will be applied as between the
parties in the following order of priority: first, to reimburse the Servicer for
any related unreimbursed Servicing Advances and unpaid Servicing Fees, pursuant
to Section 3.08(a)(vii) or this Section 3.12; second, to reimburse the Servicer
for any unreimbursed Advances, pursuant to Section 3.08(a)(ii) or this Section
3.12; third, to accrued and unpaid interest (to the extent no Advance has been
made for such amount) on the Mortgage Loan, at the applicable Net Mortgage Rate
to the Due Date occurring in the month in which such amounts are required to be
distributed; fourth, as a recovery of principal of the Mortgage Loan; and fifth,
to any prepayment charges.

     The proceeds of any net income from an REO Property will be applied as
between the parties in the following order of priority: first, to reimburse the
Servicer for any related unreimbursed Servicing Advances and unpaid Servicing
Fees, pursuant to Section 3.08(a)(vii) or this Section 3.12; second, to
reimburse the Servicer for any unreimbursed Advances, pursuant to Section
3.08(a)(ii) or this Section 3.12; third, as a recovery of principal; and fourth,
to accrued and unpaid interest (to the extent no Advance has been made for such
amount) on the related REO Property, at the applicable Net Mortgage Rate to the
Due Date occurring in the month in which such amounts are required to be
distributed.

          (b) On each Determination Date, the Servicer shall determine the
respective aggregate amounts of Excess Proceeds, if any, that occurred in the
related Prepayment Period.

          (c) [Reserved].

          (d) With respect to such of the Mortgage Loans as come into and
continue in default, the Servicer will decide, in its reasonable business
judgment, whether to (i) foreclose upon the Mortgaged Properties securing those
Mortgage Loans pursuant to Section 3.12(a), (ii) write off the unpaid principal
balance of the Mortgage Loans as bad debt (provided that the Servicer has
determined that no net recovery is possible through foreclosure proceedings or
other liquidation of the related Mortgaged Property), (iii) take a deed in lieu
of foreclosure, (iv) accept a short sale or short refinance; (v) arrange for a
repayment plan or refinancing, or (vi) agree to a modification of such Mortgage
Loan. As to any Mortgage Loan that becomes 120 days delinquent, the Servicer may
obtain a broker's price opinion, the cost of which will be reimbursable as a
Servicing Advance. After obtaining the broker's price opinion, the Servicer will
determine, in its reasonable business judgment, whether a net recovery is
possible through foreclosure proceedings or other liquidation of the related
Mortgage Property. If the Servicer determines that no such recovery is possible,
it must charge off the related Mortgage Loan at the time it becomes 180 days
delinquent. Once a Mortgage Loan has been charged off, the Servicer will
discontinue making Advances, the Servicer will not be entitled to future
Servicing Fees (except as provided below) with respect to such Mortgage Loan,
and the Mortgage Loan will be treated as a Liquidated Mortgage Loan. If the
Servicer determines that such net recovery is possible through foreclosure
proceedings or other liquidation of the related Mortgaged Property on a Mortgage
Loan that becomes 180 days delinquent, the Servicer will continue to be entitled
to Servicing Fees, the Servicer need not charge off such Mortgage Loan and may
continue making Advances, and the Servicer will be required to notify the
Trustee of such decision.

                                      -96-

<PAGE>

          (e) Any Mortgage Loan that is charged off, pursuant to (d) above, may
continue to be serviced by the Servicer for the Certificateholders using
specialized collection procedures (including foreclosure, if appropriate). The
Servicer will be entitled to Servicing Fees and reimbursement of expenses in
connection with such Mortgage Loans after the date of charge off, only to the
extent of funds available from any recoveries on any such Mortgage Loans. Any
such Mortgage Loans serviced in accordance with the specialized collection
procedures shall be serviced for approximately six months. Any net recoveries
received on such Mortgage Loans during such six month period will be treated as
Subsequent Recoveries. On the date that is six months after the date on which
the Servicer begins servicing such Mortgage Loans using the specialized
collection procedures, unless specific net recoveries are anticipated by the
Servicer on a particular Mortgage Loan, such charged off loan will be released
to the majority holder of the Class C Certificates and thereafter, (i) the
majority holder of the Class C Certificates (as identified with contact
information in writing to the Servicer by the Depositor) will be entitled to any
amounts subsequently received in respect of any such released loans, subject to
a servicing fee, (ii) the servicing thereof and the servicing fee shall be
pursuant to a servicing agreement between the Depositor and the Servicer if the
Servicer continues to service such loan, (iii) the majority holder of the Class
C Certificates may designate any servicer to service any such released loan and
(iv) the majority holder of the Class C Certificates may sell any such released
loan to a third party.

     SECTION 3.13. Trustee to Cooperate; Release of Mortgage Files

     Upon the payment in full of any Mortgage Loan, or the receipt by the
Servicer of a notification that payment in full will be escrowed in a manner
customary for such purposes, the Servicer will promptly notify the Trustee or
its custodian by delivering a Request for Release substantially in the form of
Exhibit I. Upon receipt of a copy of such request, the Trustee or its custodian
shall promptly release the related Mortgage File to the Servicer, the cost of
which may be charged to the Servicer by the Trustee, and the Servicer is
authorized to cause the removal from the registration on the MERS System of any
such Mortgage if applicable, and the Servicer, on behalf of the Trustee shall
execute and deliver the request for reconveyance, deed of reconveyance or
release or satisfaction of mortgage or such instrument releasing the lien of the
Mortgage together with the Mortgage Note with written evidence of cancellation
thereon. Expenses incurred in connection with any instrument of satisfaction or
deed of reconveyance shall be chargeable to the Mortgagor to the extent
permitted by law, and otherwise to the Trust Fund to the extent such expenses
constitute "unanticipated expenses" within the meaning of Treasury Regulations
Section 1.860G-(1)(b)(3)(ii). From time to time and as shall be appropriate for
the servicing or foreclosure of any Mortgage Loan, including for collection
under any policy of flood insurance, any fidelity bond or errors or omissions
policy, or for the purposes of effecting a partial release of any Mortgaged
Property from the lien of the Mortgage or the making of any corrections to the
Mortgage Note or the Mortgage or any of the other documents included in the
Mortgage File, the Trustee or its custodian shall, upon delivery to the Trustee
or its custodian of a Request for Release in the form of Exhibit I signed by a
Servicing Officer, release the Mortgage File to the Servicer, and the cost of
delivery of the Mortgage File may be charged to the Servicer by the Trustee.
Subject to the further limitations set forth below, the Servicer shall cause the
Mortgage File or documents so released to be returned to the Trustee or its
custodian when the need therefor by the Servicer no longer exists, unless the
Mortgage Loan is liquidated and the proceeds thereof are deposited in the
Collection Account.

     Each Request for Release may be delivered to the Trustee or its custodian
(i) via mail or courier, (ii) via facsimile or (iii) by such other means,
including, without limitation, electronic or computer readable medium, as the
Servicer and the Trustee or its custodian shall mutually agree. The Trustee or
its custodian shall release the related Mortgage File(s) within four Business
Days of receipt of a properly

                                      -97-

<PAGE>

completed Request for Release pursuant to clauses (i), (ii) or (iii) above.
Receipt of a properly completed Request for Release shall be authorization to
the Trustee or its custodian to release such Mortgage Files, provided the
Trustee or its custodian has determined that such Request for Release has been
executed, with respect to clauses (i) or (ii) above, or approved, with respect
to clause (iii) above, by an authorized Servicing Officer of the Servicer, and
so long as the Trustee or its custodian complies with its duties and obligations
under this Agreement. If the Trustee or its custodian is unable to release the
Mortgage Files within the period previously specified, the Trustee or its
custodian shall immediately notify the Servicer indicating the reason for such
delay. The Servicer shall not pay penalties or damages due to the Trustee's or
its designee's negligent failure to release the related Mortgage File or the
Trustee's or its designee's negligent failure to execute and release documents
in a timely manner, and such amounts shall be Servicer Advances.

     On each day that the Servicer remits to the Trustee or its custodian
Requests for Releases pursuant to clauses (ii) or (iii) above, the Servicer
shall also submit to the Trustee or its custodian a summary of the total number
of such Requests for Releases requested on such day by the same method as
described in such clauses (ii) and (iii) above.

     If the Servicer at any time seeks to initiate a foreclosure proceeding in
respect of any Mortgaged Property as authorized by this Agreement, the Servicer
may deliver or cause to be delivered to the Trustee for signature, or on behalf
of the Trustee execute, any court pleadings, requests for trustee's sale or
other documents necessary to effectuate such foreclosure or any legal action
brought to obtain judgment against the Mortgagor on the Mortgage Note or the
Mortgage or to obtain a deficiency judgment or to enforce any other remedies or
rights provided by the Mortgage Note or the Mortgage or otherwise available at
law or in equity. Notwithstanding the foregoing, the Servicer shall cause
possession of any Mortgage File or of the documents therein that shall have been
released by the Trustee to be returned to the Trustee promptly after possession
thereof shall have been released by the Trustee unless (i) the Mortgage Loan has
been liquidated and the Liquidation Proceeds relating to the Mortgage Loan have
been deposited in the Collection Account, and the Servicer shall have delivered
to the Trustee a Request for Release in the form of Exhibit I or (ii) the
Mortgage File or document shall have been delivered to an attorney or to a
public trustee or other public official as required by law for purposes of
initiating or pursuing legal action or other proceedings for the foreclosure of
the Mortgaged Property and the Servicer shall have delivered to the Trustee an
Officer's Certificate of a Servicing Officer certifying as to the name and
address of the Person to which the Mortgage File or the documents therein were
delivered and the purpose or purposes of such delivery.

     The Servicer shall not have any liability for and shall be excused from the
performance of the Agreement to the extent the Servicer is unable to perform due
to the Trustee's or the Custodian's failure to release the related Mortgage File
or the Trustee's or the Custodian's failure to execute and release documents in
a timely manner.

     SECTION 3.14. Documents, Records and Funds in Possession of Servicer to be
Held for the Trustee.

     All Mortgage Files and funds collected or held by, or under the control of,
the Servicer in respect of any Mortgage Loans, whether from the collection of
principal and interest payments or from Liquidation Proceeds, including but not
limited to, any funds on deposit in the Collection Account, shall be held by the
Servicer for and on behalf of the Trustee and shall be and remain the sole and
exclusive property of the Trust Fund, subject to the applicable provisions of
this Agreement. The Servicer also

                                      -98-

<PAGE>

agrees that it shall not create, incur or subject any Mortgage File or any funds
that are deposited in the Collection Account, Certificate Account or in any
Escrow Account, or any funds that otherwise are or may become due or payable to
the Trustee for the benefit of the Certificateholders, to any claim, lien,
security interest, judgment, levy, writ of attachment or other encumbrance, or
assert by legal action or otherwise any claim or right of set off against any
Mortgage File or any funds collected on, or in connection with, a Mortgage Loan,
except, however, that the Servicer shall be entitled to set off against and
deduct from any such funds any amounts that are properly due and payable to the
Servicer under this Agreement.

     SECTION 3.15. Servicing Compensation

     As compensation for its activities hereunder, the Servicer shall be
entitled to retain or withdraw from the Collection Account out of each payment
or recovery of interest on a Mortgage Loan included in the Trust Fund an amount
equal to interest at the applicable Servicing Fee Rate on the Stated Principal
Balance of the related Mortgage Loan as of the immediately preceding
Distribution Date.

     Additional servicing compensation in the form of any Excess Proceeds, late
payment fees, assumption fees (i.e. fees related to the assumption of a Mortgage
Loan upon the purchase of the related Mortgaged Property) and similar fees
payable by the Mortgagor, Prepayment Interest Excess, all income and gain net of
any losses realized from Permitted Investments in the Collection Account, and
any other benefits arising from the Collection Account and the Escrow Account
shall be retained by the Servicer to the extent not required to be deposited in
the Collection Account and the Escrow Account pursuant to Sections 3.05, 3.06 or
3.12(a) hereof. The Servicer shall be required to pay all expenses incurred by
it in connection with its servicing activities hereunder and shall not be
entitled to reimbursement therefor except as specifically provided in this
Agreement. In no event shall the Trustee be liable for any Servicing Fee or for
any differential between the Servicing Fee and the amount necessary to induce a
successor servicer to act as successor servicer under this Agreement.

     SECTION 3.16. Access to Certain Documentation

     The Servicer shall provide to the OTS and the FDIC and to comparable
regulatory authorities supervising Holders of the Certificates and the examiners
and supervisory agents of the OTS, the FDIC and such other authorities, as
applicable, access to the documentation regarding the Mortgage Loans required by
applicable regulations of the OTS and the FDIC. Such access shall be afforded
without charge, but only upon reasonable and prior written request and during
normal business hours at the offices of the Servicer designated by it provided,
that the Servicer shall be entitled to be reimbursed by each such
Certificateholder for actual expenses incurred by the Servicer in providing such
reports and access. Nothing in this Section shall limit the obligation of the
Servicer to observe any applicable law prohibiting disclosure of information
regarding the Mortgagors and the failure of the Servicer to provide access as
provided in this Section as a result of such obligation shall not constitute a
breach of this Section. The Servicer shall provide to the Trustee access to its
records regarding the Mortgage Loans upon reasonable prior notice and during
regular business hours.

     SECTION 3.17. Annual Statement as to Compliance

     Not later than (a) March 12 of each calendar year (other than the calendar
year during which the Closing Date occurs) or (b) with respect to any calendar
year during which an annual report on Form 10-K is not required to be filed
pursuant to Section 3.20 on behalf of the Issuing Entity, by April 15 of each

                                      -99-

<PAGE>

calendar year (or if such day is not a Business Day, the immediately succeeding
Business Day), the Servicer shall deliver to the Trustee and the Depositor, an
Officer's Certificate in the form attached hereto as Exhibit U stating, as to
each signatory thereof, that (i) a review of the activities of the Servicer
during the preceding calendar year and of the performance of the Servicer under
this Agreement has been made under such officer's supervision, and (ii) to the
best of such officer's knowledge, based on such review, such Servicer has
fulfilled all its obligations under this Agreement in all material respects
throughout such year or a portion thereof, or, if there has been a failure to
fulfill any such obligation in any material respect, specifying each such
failure known to such officer and the nature and status thereof. With respect to
any Subservicer that meets the criteria of Item 1108(a)(2)(i) through (iii) of
Regulation AB, the Servicer shall deliver, on behalf of that Subservicer, the
Officer's Certificate set forth in this Section 3.17 as and when required with
respect to such Subservicer.

     SECTION 3.18. Annual Independent Public Accountants' Servicing Statement;
Financial Statements

          (a) Not later than (i) March 12 of each calendar year (other than the
calendar year during which the Closing Date occurs) or (ii) with respect to any
calendar year during which an annual report on Form 10-K is not required to be
filed pursuant to Section 3.20 on behalf of the Issuing Entity, by April 15 of
each calendar year (or if such day is not a Business Day, the immediately
succeeding Business Day), the Servicer, at its own expense, shall deliver to the
Trustee and the Depositor an officer's assessment of its compliance with the
Servicing Criteria during the preceding calendar year as required by Rules
13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB (the
"Assessment of Compliance"), which assessment shall be substantially in the form
of Exhibit R hereto.

          (b) Not later than (i) March 12 of each calendar year (other than the
calendar year during which the Closing Date occurs) or (ii) with respect to any
calendar year during which an annual report on Form 10-K is not required to be
filed pursuant to Section 3.20 on behalf of the Issuing Entity, April 15 of each
calendar year (or if such day is not a Business Day, the immediately succeeding
Business Day), the Servicer, at its own expense, shall cause a nationally or
regionally recognized firm of independent registered public accountants (who may
also render other services to any Servicer, the Sponsor or any Affiliate
thereof) which is a member of the American Institute of Certified Public
Accountants to furnish a statement to be provided to the Trustee and the
Depositor that attests to and reports on the Assessment of Compliance provided
by such Servicer pursuant to Section 3.18(a) (the "Accountant's Attestation").
Such Accountant's Attestation shall be in accordance with Rules 1-02(a)(3) and
2-02(g) of Regulation S-X under the Securities Act and the Exchange Act.

          (c) The Servicer shall deliver on behalf of any Subservicer and each
Subcontractor (unless, in the case of any Subcontractor, the Depositor has
notified the Servicer and the Trustee in writing that such compliance statement
is not required by Regulation AB) not later than March 12 of each calendar year
(other than the calendar year during which the Closing Date occurs) with respect
to any calendar year during which the Issuing Entity's annual report on Form
10-K is required to be filed in accordance with the Exchange Act and the rules
and regulations of the Commission, to the Trustee and the Depositor an
Assessment of Compliance, which assessment shall be substantially in the form of
Exhibit R hereto. The Servicer shall deliver on behalf of any Subservicer (other
than the calendar year during which the Closing Date occurs) with respect to any
calendar year during which the Issuing Entity's annual report on Form 10-K is
not required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission, by April 15 of each calendar year (or, in each
case, if such day is not

                                     -100-

<PAGE>

a Business Day, the immediately succeeding Business Day) to the Trustee and the
Depositor an Assessment of Compliance, which assessment shall be substantially
in the form of Exhibit R hereto.

          (d) Not later than March 12 of each calendar year (other than the
calendar year during which the Closing Date occurs) with respect to any calendar
year during which the Issuing Entity's annual report on Form 10-K is required to
be filed in accordance with the Exchange Act and the rules and regulations of
the Commission, the Servicer shall cause each Subservicer and each Subcontractor
(unless, in the case of any Subcontractor, the Depositor has notified the
Trustee and Servicer in writing that such compliance statement is not required
by Regulation AB) to provide for delivery to the Trustee and the Depositor an
Accountant's Attestation by a registered public accounting firm that attests to,
and reports on, the Assessment of Compliance pursuant to Section 3.18(c) above.
Other than the calendar year during which the Closing Date occurs, with respect
to any calendar year during which the Issuing Entity's annual report on Form
10-K is not required to be filed in accordance with the Exchange Act and the
rules and regulations of the Commission, not later than April 15 of each
calendar year (or, in each case, if such day is not a Business Day, the
immediately succeeding Business Day), the Servicer shall cause each Subservicer
to provide for delivery to the Trustee and the Depositor an Accountant's
Attestation by a registered public accounting firm that attests to, and reports
on, the Assessment of Compliance pursuant to Section 3.18(c) above.

          (e) Not later than, with respect to any calendar year during which the
Issuing Entity's annual report on Form 10K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission, 15
calendar days before the date on which the Issuing Entity's annual report on
Form 10-K with respect to the transactions contemplated by this Agreement is
required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission (or, in each case, if such day is not a Business
Day, the immediately preceding Business Day), the Trustee shall deliver to the
Depositor and the Servicer an Assessment of Compliance with regard to the
Servicing Criteria applicable to the Trustee during the preceding calendar year.

          (f) Not later than, with respect to any calendar year during which the
Issuing Entity's annual report on Form 10K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission, 15
calendar days before the date on which the Issuing Entity's annual report on
Form 10-K with respect to the transactions contemplated by this Agreement is
required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission (or, in each case, if such day is not a Business
Day, the immediately preceding Business Day), the Trustee shall deliver to the
Depositor and the Servicer an Accountant's Attestation by a registered public
accounting firm that attests to, and reports on, the Assessment of Compliance
pursuant to Section 3.18(e) above.

          (g) Not later than, with respect to any calendar year during which the
Issuing Entity's annual report on Form 10-K is required to be filed in
accordance with the Exchange Act and the rules and regulations of the
Commission, fifteen (15) calendar days before the date on which the Issuing
Entity's annual report on Form 10-K is required to be filed in accordance with
the Exchange Act and the rules and regulations of the Commission (or, in each
case, if such day is not a Business Day, the immediately preceding Business
Day), the Depositor shall cause each custodian, if any, to deliver to the
Depositor, the Servicer and the Trustee an Assessment of Compliance with regard
to the Servicing Criteria applicable to such custodian during the preceding
calendar year.

          (h) Not later than March 12, (or, in each case, if such day is not a
Business Day, the immediately succeeding Business Day), of any calendar year
(other than the calendar year during which

                                     -101-

<PAGE>

the Closing Date occurs) during which the Issuing Entity's annual report on Form
10-K is required to be filed in accordance with the Exchange Act and the rules
and regulations of the Commission, the Depositor shall cause each custodian, if
any, to deliver to the Depositor, the Servicer and the Trustee an Accountant's
Attestation by a registered public accounting firm that attests to, and reports
on, the Assessment of Compliance pursuant to Section 3.18(g) above.

          (i) [Reserved].

          (j) [Reserved].

          (k) The Trustee agrees to require any custodian appointed by it to
indemnify and hold harmless the Trustee, the Depositor and the Servicer and each
Person, if any, who "controls" the Trustee, the Depositor or the Servicer within
the meaning of the Securities Act and its officers, directors and Affiliates
from and against any losses, damages, penalties, fines, forfeitures, reasonable
and necessary legal fees and related costs, judgments and other costs and
expenses that such Person may sustain arising out of third party claims based on
(i) the failure of the custodian, if any, to deliver when required any
information required of it pursuant to Section 3.18 or 3.20 or (ii) any material
misstatement or omission contained in any information provided on its behalf
pursuant to Section 3.18 or 3.20.

          (l) Copies of such Assessments of Compliance and Accountant's
Attestations shall be available on the Trustee's website www.etrustee.net to any
Certificateholder, provided such statement is delivered to the Trustee. The
initial Assessments of Compliance and Accountant's Attestations required
pursuant to this Section 3.18 shall be delivered to the Trustee, and the
Depositor, as applicable, by each party no later than March 12, 2008.

          (m) Each of the parties hereto acknowledges and agrees that the
purpose of this Section 3.18 is to facilitate compliance by the Sponsor and the
Depositor with the provisions of Regulation AB, as such may be amended or
clarified from time to time. Therefore, each of the parties agrees that the
parties' obligations hereunder will be supplemented and modified as necessary to
be consistent with any such amendments, interpretive advice or guidance,
convention or consensus among active participants in the asset-backed securities
markets, advice of counsel, or otherwise in respect of the requirements of
Regulation AB and the parties shall comply with requests made by the Sponsor or
the Depositor for delivery of additional or different information as the Sponsor
or the Depositor may determine in good faith is necessary to comply with the
provisions of Regulation AB, provided that such information is available to such
party without unreasonable effort or expense and within such timeframe as may be
reasonably requested. Any such supplementation or modification shall be made in
accordance with Section 10.01 without the consent of the Certificateholders, and
may result in a change in the reports filed by the Trustee on behalf of the
Issuing Entity under the Exchange Act.

     SECTION 3.19. Subordination of Liens

     In connection with any governmental program under which a Mortgagor may
obtain a benefit in the event the related Mortgaged Property is subject to a
disaster provided that the Mortgagor files a covenant or other lien against the
Mortgaged Property and is required to obtain the subordination thereto of the
Mortgage, the Servicer may cause such subordination to be executed and filed
provided that either (i) the related Mortgage Loan is in default or, in the
Servicer's best judgment, default with respect to such Mortgage Loan is imminent
or (ii) such subordination and participation in such governmental program will
not result in a change in payment expectations with respect to such Mortgage
Loan. For purposes of

                                     -102-

<PAGE>

the preceding sentence, a change in payment expectations occurs if, as a result
of such subordination and participation in such governmental program, (1) there
is a substantial enhancement of the Mortgagor's capacity to meet the payment
obligations under the Mortgage Loan and that capacity was primarily speculative
prior to such subordination and participation in such governmental program and
is adequate after such subordination and participation in such governmental
program or (2) there is a substantial impairment of the Mortgagor's capacity to
meet the payment obligations under the Mortgage Loan and that capacity was
adequate prior to such subordination and participation in such governmental
program and is primarily speculative after such subordination and participation
in such governmental program. The preceding sentence and clause (ii) of the
second preceding sentence are intended to comply with Treasury Regulations
Section 1.1001-3(e)(4) and shall be interpreted in accordance therewith.

     SECTION 3.20. Periodic Filings

     As set forth on Schedule X hereto, for so long as the Issuing Entity is
subject to the Exchange Act reporting requirements, no later than the end of
business on the 2nd Business Day after the occurrence of an event requiring
disclosure on Form 8K (a "reportable event") (i) the Depositor, the Sponsor or
the Servicer shall have timely notified the Trustee of an item reportable on a
Form 8-K (unless such item is specific to the Trustee, in which case the Trustee
will be deemed to have notice), (ii) shall have delivered to the Trustee, all
information, data, and exhibits required to be provided or filed with such Form
8-K in a word format agreed upon by the Trustee and Depositor, Sponsor or
Servicer and (iii) the Depositor or the Trustee, to the extent the reportable
item pertains to such party, shall notify the Servicer thereof by telephone. The
Trustee shall not be responsible for determining what information is required to
be filed on a Form 8-K in connection with the transactions contemplated by this
Agreement (unless such information is specific to the Trustee, in which case the
Trustee will be responsible for consulting with the Depositor or Servicer in
making such a determination) or what events shall cause a Form 8-K to be
required to be filed (unless such event is specific to the Trustee, in which
case the Trustee will be responsible for consulting with the Depositor or
Servicer before causing such Form 8-K to be filed) and shall not be liable for
any late filing of a Form 8-K in the event that it does not receive all
information, data and exhibits required to be provided or filed on or prior to
the second Business Day prior to the applicable filing deadline and with respect
to signatures, by noon, New York City time, on the fourth Business Day after the
reportable event. After preparing the Form 8-K on behalf of the Depositor, the
Trustee shall, if required, forward electronically a draft copy of the Form 8-K
to the Depositor and the Servicer for review. No later than one and one-half
Business Days after receiving a final copy of the Form 8-K from the Trustee,
unless the Servicer has received from the Depositor a notice to the contrary, a
duly authorized representative of the Servicer shall sign the Form 8-K and
return an electronic or fax copy of such signed Form 8-K (with an original
executed hard copy to follow by overnight mail) to the Trustee and the Trustee
shall file such Form 8-K; provided that the Depositor has notified the Trustee
that it approves of the form and substance of such Form 8-K. If a Form 8-K
cannot be filed on time or if a previously filed Form 8-K needs to be amended,
the Trustee will follow the procedures set forth in this Agreement. After filing
with the Commission, the Trustee will, pursuant to this Agreement, make
available on its internet website a final executed copy of each Form 8-K. The
Trustee will have no obligation to prepare, execute or file such Form 8-K or any
liability with respect to any failure to properly prepare, execute or file such
Form 8-K resulting from the Trustee's inability or failure to obtain or receive
any information needed to prepare, arrange for execution or file such Form 8-K
within the time frames required by this paragraph, not resulting from its own
negligence, bad faith or willful misconduct.

     Within fifteen (15) days after each Distribution Date, the Trustee shall,
on behalf of the Issuing Entity and in accordance with industry standards, file
with the Commission via the Electronic Data

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<PAGE>

Gathering and Retrieval System (EDGAR), a Form 10-D with a copy of the report to
the Certificateholders for such Distribution Date as an exhibit thereto. Any
other information provided to the Trustee by the Servicer or Depositor to be
included in Form 10-D shall be determined and prepared by and at the direction
of the Depositor pursuant to the following paragraph and the Trustee will have
no duty or liability for any failure hereunder to determine or prepare any
additional information on Form 10-D ("Additional Form 10-D Disclosure") as set
forth in the next paragraph.

     As set forth in Schedule Y hereto, within five (5) calendar days after the
related Distribution Date (i) the parties hereto, as applicable, will be
required to provide to the Depositor and the Servicer, to the extent known to
such party, any Additional Form 10-D Disclosure (including any breaches of pool
asset representations and warranties or transaction covenants of which the party
has written notice and which has not been included on the monthly distribution
report for the period), if applicable, and (ii) the Depositor, to the extent it
deems necessary, forward to the Trustee in EDGAR-compatible form (or such other
word processing format that is EDGAR-compatible) (with a copy to the Servicer),
or in such other form as otherwise agreed upon by the Trustee and the Depositor,
the form and substance of the Additional Form 10-D Disclosure by the eighth
(8th) calendar day after the related Distribution Date. The Depositor will be
responsible for any reasonable fees and expenses incurred by the Trustee in
connection with including any Additional Form 10-D Disclosure on Form 10-D
pursuant to this paragraph.

     After preparing the Form 10-D at the direction of the Depositor, the
Trustee will forward electronically a draft copy of the Form 10-D to the
Depositor and the Servicer for review by the 9th calendar day after the
Distribution Date. No later than two (2) Business Days after receipt of a final
copy after the related Distribution Date, unless the Servicer receives a notice
from the Trustee as described below or a notice from the Depositor that it has
discovered a material deficiency or irregularity with respect to such Form 10-D,
a duly authorized representative of the Servicer shall sign the Form 10-D and
return an electronic or fax copy of such Form 10-D (with an original executed
hard copy to follow by overnight mail) to the Trustee and the Trustee shall file
such Form 10-D within two business days. Unless the Servicer shall have received
notice from the Trustee to the contrary, the Trustee will be deemed to have
represented to the Servicer that the monthly statement has been properly
prepared by the Trustee and the Servicer may rely upon the accuracy thereof in
it execution of the Form 10-D. If a Form 10-D cannot be filed on time (because
of notice from the Trustee per the previous sentence or otherwise) or if a
previously filed Form 10-D needs to be amended, the Trustee will follow the
procedures set forth in this Agreement. After filing with the Commission, the
Trustee will make available on its internet website a final executed copy of
each Form 10-D. The Trustee will have no liability with respect to any failure
to properly prepare, execute or file such Form 10-D resulting from the Trustee's
inability or failure to obtain or receive any information needed to prepare,
arrange for execution or file such Form 10-D on a timely basis.

     Prior to March 30, 2008 (and, if applicable, prior to the ninetieth (90th)
calendar day after the end of the fiscal year for the Issuing Entity), the
Trustee shall, on behalf of the Issuing Entity and in accordance with industry
standards, prepare and file with the Commission via EDGAR a Form 10 -K with
respect to the Issuing Entity. Such Form 10-K shall include the following items,
in each case to the extent they have been delivered to the Trustee within the
applicable time frames set forth in this Agreement, (i) an annual compliance
statement for the Servicer and each Subservicer, as described in Section 3.17 of
the Agreement, (ii)(A) the annual reports on Assessment of Compliance with
Servicing Criteria for each Servicer, Subservicer and Subcontractor (unless the
Depositor has determined that such compliance statement is not required by
Regulation AB), as described in Section 3.18 of the Agreement, and (B) if any
Reporting Servicer's report on Assessment of Compliance with Servicing Criteria
described in

                                     -104-

<PAGE>

Section 3.18 identifies any material instance of noncompliance, disclosure
identifying such instance of noncompliance, or if any report on assessment of
compliance with servicing criteria described in Section 3.18 of the Agreement is
not included as an exhibit to such Form 10-K, disclosure that such report is not
included and an explanation why such report is not included, (iii)(A) the
registered public accounting firm attestation report for the Servicer and each
Subservicer, as described in Section 3.18 of the Agreement, and (B) if any
registered public accounting firm attestation report described in the Section
3.18 of the Agreement identifies any material instance of noncompliance,
disclosure identifying such instance of noncompliance, or if any such registered
public accounting firm attestation report is not included as an exhibit to such
Form 10-K, disclosure that such report is not included and an explanation why
such report is not included, and (iv) a Sarbanes-Oxley Certification in the form
attached hereto as Exhibit T, executed by the senior officer in charge of
securitizations of the Servicer. Any disclosure or information in addition to
(i) through (iv) above that is required to be included on Form 10-K ("Additional
Form 10-K Disclosure") shall be determined and prepared by and at the direction
of the Depositor pursuant to the following paragraph and the Trustee will have
no duty or liability for any failure hereunder to determine or prepare any
Additional Form 10-K Disclosure, except as set forth in the next paragraph.

     As set forth in Schedule Z hereto, no later than March 12 of each year that
the Issuing Entity is subject to the Exchange Act reporting requirements,
commencing in 2008, (i) certain parties to the transaction shall be required to
provide to the Depositor and the Servicer, to the extent known, any Additional
Form 10-K Disclosure, if applicable, and (ii) the Depositor shall, to the extent
it deems necessary, forward to the Trustee in EDGAR-compatible form (or such
other word processing format that is EDGAR-compatible), or in such other form as
otherwise agreed upon by the Trustee and the Depositor, the form and substance
of the Additional Form 10-K Disclosure by March 15. The Depositor will be
responsible for any reasonable fees and expenses incurred by the Trustee in
connection with including any Additional Form 10-K Disclosure on Form 10-K
pursuant to this paragraph.

     After preparing the Form 10-K, the Trustee shall forward electronically a
draft copy of the Form 10-K to the Depositor and the Servicer for review. Upon
the request of the Servicer, the Depositor shall confirm that it has reviewed
the Form 10-K, that it has been properly prepared and that the Servicer may rely
on the accuracy thereof (other than with respect to any portion of the Form 10-K
or any exhibit thereto provided by the Servicer (other than any portion thereof
with respect to which the Servicer has relied on the Trustee)). No later than
5:00 p.m. EST on the 3rd Business Day following receipt of a final copy of the
Form 10-K and if requested, the above-described confirmation from the Depositor,
a senior officer of the Servicer shall sign the Form 10-K and return an
electronic or fax copy of such signed Form 10-K (with an original executed hard
copy to follow by overnight mail) to the Trustee and the Trustee shall file such
Form 10-K by March 30th. If a Form 10-K cannot be filed on time or if a
previously filed Form 10-K needs to be amended, the Trustee will follow the
procedures set forth in the Agreement. After filing with the Commission, the
Trustee will, pursuant to the Agreement, make available on its internet website
a final executed copy of each Form 10-K. The Trustee shall have no liability
with respect to any failure to properly prepare, execute or file such Form 10-K
resulting from the Trustee's inability or failure to obtain or receive any
information needed to prepare, arrange for execution or file such Form 10-K on a
timely basis.

     Each Form 10-K shall include a certification (the "Sarbanes-Oxley
Certification") which shall be in the form attached hereto as Exhibit T. The
Servicer will cause its senior officer in charge of securitization to execute
the Sarbanes-Oxley Certification required pursuant to Rule 13a -14 under the
Securities Exchange Act of 1934, as amended, and to deliver the original
executed Sarbanes-Oxley Certification to the Trustee by March 12 of each year in
which the Issuing Entity is subject to the

                                     -105-

<PAGE>

reporting requirements of the Exchange Act. In connection therewith, each of the
Trustee and the Servicer shall sign a certification (in the form attached hereto
as Exhibit K and Exhibit L, respectively) for the benefit of the Servicer and
its officers, directors and Affiliates regarding certain aspects of the
Sarbanes-Oxley Certification. To the extent any information or exhibits required
to be included in the Form 10 -K are not timely received by the Trustee prior to
March 30, the Trustee shall, on behalf of the Trust, file a Form 12B-25 and one
or more amended Form 10-Ks, to the extent such amendments are accepted pursuant
to the Exchange Act, to include such missing information or exhibits promptly
after receipt thereof by the Trustee.

     On or before January 30, 2008, the Trustee shall, if legally permissible
under applicable regulations and interpretations of the Commission, on behalf of
the Issuing Entity and in accordance with industry standards, file with the
Commission via EDGAR a Form 15 Suspension Notification with respect to the
Issuing Entity, if applicable.

     The Servicer agrees to furnish to the Trustee promptly, from time to time
upon request, such further information, reports, and financial statements within
its control related to this Agreement and the Mortgage Loans as is reasonably
necessary to prepare and file all necessary reports with the Commission. The
Trustee shall have no responsibility to file any items with the Commission other
than those specified in this section and the Servicer shall execute any and all
Form 8-Ks, Form 10-Ds and Form 10-Ks required hereunder.

     If the Commission issues additional interpretative guidance or promulgates
additional rules or regulations with respect to Regulation AB or otherwise, or
if other changes in applicable law occur, that would require the reporting
arrangements, or the allocation of responsibilities with respect thereto,
described in this Section 3.20, to be conducted differently than as described,
the Depositor, the Servicer, and the Trustee will reasonably cooperate to amend
the provisions of this Section 3.20 in order to comply with such amended
reporting requirements and such amendment of this Section 3.20. Any such
amendment shall be made in accordance with Section 10.01 without the consent of
the Certificateholders, and may result in a change in the reports filed by the
Trustee on behalf of the Issuing Entity under the Exchange Act. Notwithstanding
the foregoing, the Depositor, the Servicer, and the Trustee shall not be
obligated to enter into any amendment pursuant to this Section 3.20 that
adversely affects its obligations and immunities under this Agreement.

     The Depositor, the Servicer and the Trustee agree to use their good faith
efforts to cooperate in complying with the requirements of this Section 3.20.

     SECTION 3.21. Indemnification by Trustee

     The Trustee shall indemnify and hold harmless the Depositor, the Servicer
and their respective officers, directors, agents and Affiliates from and against
any losses, damages, penalties, fines, forfeitures, reasonable legal fees and
related costs, judgments and other costs and expenses arising out of or based
upon a breach by the Trustee or any of its officers, directors, agents or
Affiliates of its obligations under Sections 3.18 and 3.20, any material
misstatement or omission in any documents prepared thereunder (to the extent the
Trustee is responsible for providing information or calculating amounts included
in such information), the failure of the Trustee to deliver when required any
Assessment of Compliance or Accountant's Attestation required of it pursuant to
Section 3.18, or any material misstatement or omission contained in any
Assessment of Compliance or Accountant's Attestation provided on its behalf
pursuant to Section 3.18, or the negligence, bad faith or willful misconduct of
the Trustee in connection therewith.

                                     -106-

<PAGE>

If the indemnification provided for herein is unavailable or insufficient to
hold harmless the indemnified parties, then the Trustee agrees that it shall
contribute to the amount paid or payable by the indemnified parties as a result
of the losses, claims, damages or liabilities of the indemnified parties in such
proportion as is appropriate to reflect the relative fault of the Trustee on the
one hand and of the indemnified parties on the other.

     SECTION 3.22. Indemnification by Servicer

     The Servicer shall indemnify and hold harmless the Trustee and the
Depositor and their respective officers, directors, agents and Affiliates from
and against any losses, damages, penalties, fines, forfeitures, reasonable legal
fees and related costs, judgments and other costs and expenses arising out of or
based upon a breach by the Servicer or any of its officers, directors, agents or
Affiliates of its obligations under Sections 3.17, 3.18 and 3.20, any material
misstatement or omission in any documents prepared thereunder (to the extent the
Servicer is responsible for providing information or calculating amounts
included in such information), the failure of such Servicer or any related
Sub-Servicer or Subcontractor to deliver or cause to be delivered when required
any Assessment of Compliance or Accountant's Attestation required of it pursuant
to Section 3.18 or Annual Statement of Compliance required pursuant to Section
3.17, as applicable, or any material misstatement or omission contained in any
Assessment of Compliance, Accountant's Attestation or Annual Statement as to
Compliance provided on its behalf pursuant to Section 3.18 or 3.17, as
applicable, or the negligence, bad faith or willful misconduct of the Servicer
in connection therewith. If the indemnification provided for herein is
unavailable or insufficient to hold harmless the indemnified parties, then the
Servicer agrees that it shall contribute to the amount paid or payable by the
indemnified parties as a result of the losses, claims, damages or liabilities of
the indemnified parties in such proportion as is appropriate to reflect the
relative fault of the Servicer on the one hand and the indemnified parties on
the other.

     Notwithstanding the foregoing, the Servicer shall be entitled to rely
conclusively on the accuracy of the information or data provided to the Servicer
in the respective Assessment of Compliance regarding the Servicing Criteria
applicable to the Trustee under Sections 3.18(e) and 3.18(f) or the Depositor
under Sections 3.18(g) and 3.18(h) in connection with the Servicer's document
preparation under Sections 3.17, 3.18 and 3.20, and the Servicer shall be
entitled to rely conclusively upon and shall have no liability for any errors in
such information.

     SECTION 3.23. Prepayment Charge Reporting Requirements

     Promptly after each Distribution Date, the Servicer shall provide to the
Depositor and the Trustee the following information with regard to each Mortgage
Loan that has prepaid during the related Prepayment Period:

          (i)  loan number;

          (ii) current Mortgage Rate;

          (iii) current principal balance;

          (iv) original principal balance;

          (v)  Prepayment Charge amount due; and

                                     -107-

<PAGE>

          (vi) Prepayment Charge amount collected.

     SECTION 3.24. Information to the Trustee

     Two Business Days after the 15th day of each month, but not later than the
18th day of each month, the Servicer shall furnish to the Trustee in electronic
format (1) the Remittance Report pursuant to Section 4.04(j) and (ii) a
delinquency report in the form attached hereto as Exhibit V for the period
ending on the last Business Day of the preceding month (and with respect to
prepayments in full, for the period ending on the 14th day of the month in which
such report is to be furnished); provided, however, that in the event the 18th
day is not a Business Day, the aforementioned reports shall be furnished by the
Servicer to the Trustee on the next Business Day; and provided, further, that in
the event there are three non-Business Days preceding the 18th day, the Servicer
will (a) furnish to the Trustee, on or before the 18th day of the month, the
aforementioned reports, which will not include information arising from the
related Prepayment Period, and (b) furnish to the Trustee, by 3:00 P.M., EST on
the next succeeding Business Day after the 18th day, a cumulative version of the
aforementioned reports which includes such information arising from the related
Prepayment Period.

     SECTION 3.25. Indemnification

     The Servicer shall indemnify the Sponsor, the Issuing Entity, the Trustee
(in its individual capacity and in its capacity as trustee), the Depositor and
their officers, directors, employees and agents and hold each of them harmless
against any and all claims, losses, damages, penalties, fines, forfeitures,
reasonable and necessary legal fees and related costs, judgments, and any other
costs, fees and expenses that any of such parties may sustain in any way related
to the failure of the Servicer to perform its duties and service the Mortgage
Loans in compliance with the terms of this Agreement by reason of negligence,
willful misfeasance or bad faith in the performance of its duties or by reason
of reckless disregard of obligations and duties hereunder. The Servicer
immediately shall notify the Sponsor, the Trustee and the Depositor or any other
relevant party if a claim is made by a third party with respect to such party
and this Agreement or the Mortgage Loans and, if subject to this indemnification
obligation, assume (with the prior written consent of the indemnified party,
which consent shall not be unreasonably withheld or delayed) the defense of any
such claim and pay all expenses in connection therewith, including counsel fees,
and promptly pay, discharge and satisfy any judgment or decree which may be
entered against it or any of such parties in respect of such claim. The Servicer
shall follow any reasonable written instructions received from the Trustee in
connection with such claim, it being understood that the Trustee shall have no
duty to monitor or give instructions with respect to such claims, and the
Servicer will not have any liability for following such instructions. The
Servicer shall provide the Depositor and the Trustee with a written report of
all expenses and advances incurred by the Servicer pursuant to this Section
3.25(a), and the Servicer shall promptly reimburse itself from the assets of the
Trust Fund in the Collection Account for all amounts advanced by it pursuant to
the preceding sentence except when the claim in any way relates to the gross
negligence, bad faith or willful misconduct of the Servicer. The provisions of
this paragraph shall survive the termination of this Agreement and the payment
of the outstanding Certificates.

     SECTION 3.26. Solicitation

     The Servicer may solicit or refer to a mortgage originator, who may or may
not be an affiliate of the Depositor or the Servicer, any Mortgagor for
refinancing or otherwise take action to encourage refinancing.

                                     -108-

<PAGE>

     SECTION 3.27. High Cost Mortgage Loans

     In the event that the Servicer reasonably determines that a Mortgage Loan
may be a "high cost mortgage loan", "high cost home", "covered", "high cost",
"high risk home", "predatory" or similarly classified loan under any applicable
state, federal or local law, the Servicer may notify the Depositor, the Sponsor
and the Trustee thereof; the Servicer may terminate its servicing thereof; and
such determination shall be deemed to materially and adversely affect the
interests of the Certificateholders in such Mortgage Loan and the Sponsor will
repurchase the Mortgage Loan within a 30 day period from the date of the notice
in the manner described in Section 2.05.

     SECTION 3.28. Rights of the NIMs Insurer

     Each of the rights of the NIMs Insurer set forth in this agreement shall
exist so long as the NIM Notes issued pursuant to the Indenture remain
outstanding or the NIMs Insurer is owed amounts in respect of its guarantee of
payment on such NIM notes.

                                   ARTICLE IV

                                  DISTRIBUTIONS

     SECTION 4.01. Advances

          (a) Subject to the conditions of this Article IV, the Servicer, as
required below, shall make an Advance and deposit such Advance in the Collection
Account. The Servicer shall use commercially reasonable efforts to remit each
such Advance no later than 2:30 p.m. Eastern time, but in any case no later than
4:00 p.m. Eastern time, on the Servicer Remittance Date in immediately available
funds. The Servicer shall be obligated to make any such Advance only to the
extent that such advance would not be a Non-Recoverable Advance. If the Servicer
shall have determined that it has made a Non-Recoverable Advance or that a
proposed Advance or a lesser portion of such Advance would constitute a
Non-Recoverable Advance, the Servicer shall deliver (i) to the Trustee for the
benefit of the Certificateholders, funds constituting the remaining portion of
such Advance, if applicable, and (ii) to the Depositor, each Rating Agency, the
NIMs Insurer and the Trustee an Officer's Certificate setting forth the basis
for such determination. The Servicer may, in its sole discretion, make an
Advance with respect to the principal portion of the final Scheduled Payment on
a Balloon Loan, but the Servicer is under no obligation to do so; provided,
however, that nothing in this sentence shall affect the Servicer's obligation
under this Section 4.01 to Advance the interest portion of the final Scheduled
Payment with respect to a Balloon Loan as if such Balloon Loan were a fully
amortizing Mortgage Loan. If a Mortgagor does not pay its final Scheduled
Payment on a Balloon Loan when due, the Servicer shall Advance (unless it
determines in its good faith judgment that such amounts would constitute a
Non-Recoverable Advance) a full month of interest (net of the Servicing Fee) on
the Stated Principal Balance thereof each month until its Stated Principal
Balance is reduced to zero.

     In lieu of making all or a portion of such Advance from its own funds, the
Servicer may (i) cause to be made an appropriate entry in its records relating
to the Collection Account that any amount held for future distribution has been
used by the Servicer in discharge of its obligation to make any such Advance and
(ii) transfer such funds from the Collection Account to the Certificate Account.
In addition, the Servicer shall have the right to reimburse itself for any such
Advance from amounts held from time to time in the Collection Account to the
extent such amounts are not then required to be distributed. Any

                                     -109-

<PAGE>

funds so applied and transferred pursuant to the previous two sentences shall be
replaced by the Servicer by deposit in the Collection Account no later than the
close of business on the Servicer Remittance Date on which such funds are
required to be distributed pursuant to this Agreement. The Servicer shall be
entitled to be reimbursed from the Collection Account for all Advances of its
own funds made pursuant to this Section as provided in Section 3.08. The
obligation to make Advances with respect to any Mortgage Loan shall continue
until the earlier of (i) such Mortgage Loan is paid in full, (ii) the related
Mortgaged Property or related REO Property has been liquidated or until the
purchase or repurchase thereof (or substitution therefor) from the Issuing
Entity pursuant to any applicable provision of this Agreement, except as
otherwise provided in this Section 4.01, (iii) the Servicer determines in its
good faith judgment that such amounts would constitute a Non-Recoverable Advance
as provided in the preceding paragraph or (iv) the date on which such Mortgage
Loan becomes 150 days delinquent as set forth below.

          (b) Notwithstanding anything in this Agreement to the contrary
(including, but not limited to, Sections 3.01 and 4.01(a) hereof), no Advance or
Servicing Advance shall be required to be made hereunder by the Servicer
(including for the avoidance of doubt, the Trustee as successor servicer) if
such Advance or Servicing Advance would, if made, constitute a Non-Recoverable
Advance or a Non-Recoverable Servicing Advance. The determination by the
Servicer that it has made a Non-Recoverable Advance or a Non-Recoverable
Servicing Advance or that any proposed Advance or Servicing Advance, if made,
would constitute a Non-Recoverable Advance or a Non-Recoverable Servicing
Advance, respectively, shall be evidenced by an Officer's Certificate of the
Servicer delivered to the Depositor and the Trustee. In addition, the Servicer
shall not be required to advance any Relief Act Shortfalls.

          (c) Notwithstanding the foregoing, the Servicer shall not be required
to make any Advances for any Mortgage Loan after such Mortgage Loan becomes 150
days delinquent. The Servicer shall identify such delinquent Mortgage Loans in
the Servicer Statement referenced in Section 3.24. In addition, the Servicer
shall provide the Trustee with an Officer's Certificate listing such delinquent
Mortgage Loans and certifying that such loans are 150 days or more delinquent.

     SECTION 4.02. Reduction of Servicing Compensation in Connection with
Prepayment Interest Shortfalls

     In the event that any Mortgage Loan is the subject of a Prepayment Interest
Shortfall, the Servicer shall, from amounts in respect of the Servicing Fee for
such Distribution Date, deposit into the Collection Account, as a reduction of
the Servicing Fee for such Distribution Date, no later than the Servicer
Remittance Date immediately preceding such Distribution Date, an amount up to
the Prepayment Interest Shortfall; provided that the amount so deposited shall
not exceed the Compensating Interest for such Distribution Date. In case of such
deposit, the Servicer shall not be entitled to any recovery or reimbursement
from the Depositor, the Trustee, the Issuing Entity or the Certificateholders.
With respect to any Distribution Date, to the extent that the Prepayment
Interest Shortfall exceeds Compensating Interest (such excess, a "Non-Supported
Interest Shortfall"), such Non-Supported Interest Shortfall shall reduce the
Current Interest with respect to each Class of Certificates, pro rata based upon
the amount of interest each such Class would otherwise be entitled to receive on
such Distribution Date. Notwithstanding the foregoing, there shall be no
reduction of the Servicing Fee in connection with Prepayment Interest Shortfalls
related to the Relief Act or bankruptcy proceedings and the Servicer shall not
be obligated to pay Compensating Interest with respect to Prepayment Interest
Shortfalls related to the Relief Act or bankruptcy proceedings.

     SECTION 4.03. Distributions on the REMIC Interests

                                     -110-

<PAGE>

     On each Distribution Date, amounts on deposit in the Certificate Account
shall be treated for federal income tax purposes as applied to distributions on
the interests in each of the SWAP REMIC and the Lower Tier REMIC in an amount
sufficient to make the distributions on the respective Certificates on such
Distribution Date in accordance with the provisions of Section 4.04.

     SECTION 4.04. Distributions

          (a) [Reserved].

          (b) On each Distribution Date (or on the related Swap Payment Date,
with respect to payments to the Supplemental Interest Trust), the Trustee shall,
to the extent of funds then available, make the following distributions from
funds then available in the Certificate Account, of an amount equal to the
Interest Funds, in the following order of priority:

          (i) to the Class P Certificates, an amount equal to any Prepayment
Charges received with respect to the Mortgage Loans and all amounts paid by the
Servicer or the Sponsor in respect of Prepayment Charges pursuant to this
Agreement, and all amounts received in respect of any indemnification paid as a
result of a Prepayment Charge being unenforceable in breach of the
representations and warranties set forth in the Purchase Agreement for the
related Prepayment Period;

          (ii) to the Supplemental Interest Trust, any Net Swap Payments owed to
the Swap Counterparty;

          (iii) to the Supplemental Interest Trust, any Swap Termination Payment
owed by the Supplemental Interest Trust to the Swap Counterparty (other than any
Defaulted Swap Termination Payment);

          (iv) concurrently, to each class of the Class A Certificates, the
Current Interest and any Interest Carry Forward Amount with respect to each such
class; provided, however, that if Interest Funds are insufficient to make a full
distribution of the aggregate Current Interest and the aggregate Interest Carry
Forward Amount to the Class A Certificates, Interest Funds will be distributed
pro rata among each Class of the Class A Certificates based upon the ratio of
(x) the Current Interest and Interest Carry Forward Amount for each class of the
Class A Certificates to (y) the total amount of Current Interest and any
Interest Carry Forward Amount for the Class A-1, Class A-2 and Class R
Certificates in the aggregate;

          (v) to the Class M-1 Certificates, the Current Interest for such class
and any Interest Carry Forward Amount with respect to such Class;

          (vi) to the Class M-2 Certificates, the Current Interest for such
class and any Interest Carry Forward Amount with respect to such Class;

          (vii) to the Class M-3 Certificates, the Current Interest for such
class and any Interest Carry Forward Amount with respect to such Class;

          (viii) to the Class M-4 Certificates, the Current Interest for such
class and any Interest Carry Forward Amount with respect to such Class;

                                     -111-

<PAGE>

          (ix) to the Class M-5 Certificates, the Current Interest for such
class and any Interest Carry Forward Amount with respect to such Class;

          (x) to the Class M-6 Certificates, the Current Interest for such class
and any Interest Carry Forward Amount with respect to such Class;

          (xi) to the Class B-1 Certificates, the Current Interest for each such
class and any Interest Carry Forward Amount with respect to each such Class;

          (xii) to the Class B-2 Certificates, the Current Interest for each
such class and any Interest Carry Forward Amount with respect to each such
Class;

          (xiii) to the Class B-3 Certificates, the Current Interest for each
such class and any Interest Carry Forward Amount with respect to each such
Class;

          (xiv) any remainder pursuant to Section 4.04(f) hereof.

     On each Distribution Date, subject to the proviso in (iv) above, Interest
Funds received on the Group One Mortgage Loans will be deemed to be distributed
to the Class R and Class A-1 Certificates and Interest Funds received on the
Group Two Mortgage Loans will be deemed to be distributed to the Class A-2
Certificates, in each case, until the related Current Interest and Interest
Carry Forward Amount of each such Class of Certificates for such Distribution
Date has been paid in full. Thereafter, Interest Funds not required for such
distributions are available to be applied to if necessary, to the Class or
Classes of Certificates that are not related to such group of Mortgage Loans.

          (c) [Reserved].

          (d) On each Distribution Date (or on the related Swap Payment Date,
with respect to payments to the Supplemental Interest Trust), the Trustee shall,
to the extent of funds then available, make the following distributions from the
Certificate Account of an amount equal to the Principal Distribution Amount in
the following order of priority, and each such distribution shall be made only
after all distributions pursuant to Section 4.04(b) above shall have been made
until such amount shall have been fully distributed for such Distribution Date:

          (i) to the Supplemental Interest Trust, any Net Swap Payments owed to
the Swap Counterparty, to the extent not paid pursuant to Section 4.04(b)(ii);

          (ii) to the Supplemental Interest Trust, any Swap Termination Payment
owed by the Supplemental Interest Trust to the Swap Counterparty (other than any
Defaulted Swap Termination Payment), to the extent not paid pursuant to Section
4.04(b)(iii);

          (iii) to the Class A Certificates, the Class A Principal Distribution
Amount shall be distributed as follows:

               (A) the Group One Principal Distribution Amount will be
          distributed sequentially to the Class R and Class A-1 Certificates, in
          that order, until the Certificate Principal Balance of each such class
          has been reduced to zero;

                                     -112-

<PAGE>

               (B) the Group Two Principal Distribution Amount will be
          distributed as follows: sequentially, to the Class A-2A Certificates
          until the Certificate Principal Balance thereof has been reduced to
          zero, then to the Class A-2B Certificates until the Certificate
          Principal Balance thereof has been reduced to zero; then to the Class
          A-2C Certificates until the Certificate Principal Balance thereof has
          been reduced to zero and then to the Class A-2D Certificates until the
          Certificate Principal Balance thereof has been reduced to zero;
          provided, however, that on and after the Distribution Date on which
          the aggregate Certificate Principal Balance of the Class M, Class B
          and Class C Certificates has been reduced to zero, any principal
          distributions allocated to the Class A-2A, Class A-2B, Class A-2C and
          Class A-2D Certificates are required to be allocated pro rata, among
          such Classes, based on their respective Certificate Principal
          Balances, until their Certificate Principal Balances have been reduced
          to zero;

          (iv) to the Class M-1 Certificates, the Class M-1 Principal
Distribution Amount:

          (v) to the Class M-2 Certificates, the Class M-2 Principal
Distribution Amount;

          (vi) to the Class M-3 Certificates, the Class M-3 Principal
Distribution Amount;

          (vii) to the Class M-4 Certificates, the Class M-4 Principal
Distribution Amount;

          (viii) to the Class M-5 Certificates, the Class M-5 Principal
Distribution Amount;

          (ix) to the Class M-6 Certificates, the Class M-6 Principal
Distribution Amount;

          (x) to the Class B-1 Certificates, the Class B-1 Principal
Distribution Amount;

          (xi) to the Class B-2 Certificates, the Class B-2 Principal
Distribution Amount;

          (xii) to the Class B-3 Certificates, the Class B-3 Principal
Distribution Amount; and

          (xiii) any remainder pursuant to Section 4.04(f) hereof.

          (e) [Reserved].

          (f) On each Distribution Date, the Trustee shall, to the extent of
funds then available, make the following distributions up to the following
amounts from the Certificate Account of the remainders pursuant to Section
4.04(b)(xiv) and (d)(xiii) hereof and each such distribution shall be made only
after all distributions pursuant to Sections 4.04(b) and (d) above shall have
been made until such remainders shall have been fully distributed for such
Distribution Date:

          (i) to the Class A Certificates, any funds owed, in the same manner
and in the same order of priority, as set forth in accordance with Section
4.04(b)(iv), to the extent not paid pursuant to Section 4.04(b)(iv);

          (ii) to the Class M-1 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(v), to the extent not paid pursuant to Section
4.04(b)(v);

                                     -113-

<PAGE>

          (iii) to the Class M-2 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(vi), to the extent not paid pursuant to Section
4.04(b)(vi);

          (iv) to the Class M-3 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(vii), to the extent not paid pursuant to Section
4.04(b)(vii);

          (v) to the Class M-4 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(viii), to the extent not paid pursuant to
Section 4.04(b)(viii);

          (vi) to the Class M-5 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(ix), to the extent not paid pursuant to Section
4.04(b)(ix);

          (vii) to the Class M-6 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(x), to the extent not paid pursuant to Section
4.04(b)(x);

          (viii) to the Class B-1 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(xi), to the extent not paid pursuant to Section
4.04(b)(xi);

          (ix) to the Class B-2 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(xii), to the extent not paid pursuant to Section
4.04(b)(xii);

          (x) to the Class B-3 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(xiii), to the extent not paid pursuant to
Section 4.04(b)(xiii);

          (xi) for distribution as part of the Principal Distribution Amount,
the Extra Principal Distribution Amount;

          (xii) to the Class M-1 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xiii) to the Class M-2 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xiv) to the Class M-3 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xv) to the Class M-4 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xvi) to the Class M-5 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xvii) to the Class M-6 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xviii) to the Class B-1 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xix) to the Class B-2 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xx) to the Class B-3 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xxi) to the Class A, Class M and Class B Certificates, on a pro rata
basis, based upon outstanding Floating Rate Certificate Carryover for each such
Class, the Floating Rate Certificate Carryover for each such Class; and

                                     -114-

<PAGE>

          (xxii) the remainder pursuant to Section 4.04(g) hereof.

          (g) on each Distribution Date, the Trustee shall allocate the
remainders pursuant to Section 4.04(f)(xxii) as follows:

          (i) to the Supplemental Interest Trust, any Defaulted Swap Termination
Payment;

          (ii) to the Class C Certificates in the following order of priority,
(I) the Class C Current Interest, (II) the Class C Interest Carry Forward
Amount, (III) as principal on the Class C Certificate until the Certificate
Principal Balance of the Class C Certificates has been reduced to zero and (IV)
the Class C Unpaid Realized Loss Amount; and

          (iii) the remainder pursuant to Section 4.04(h) hereof.

          (h) On each Distribution Date, the Trustee shall allocate the
remainder pursuant to Section 4.04(g)(iii) hereof (i) to the Trustee to
reimburse amounts or pay indemnification amounts owing to the Trustee from the
Issuing Entity pursuant to Section 8.06 and (ii) to the Class R Certificate and
such distributions shall be made only after all preceding distributions shall
have been made until such remainder shall have been fully distributed.

          (i) On each Distribution Date, after giving effect to distributions on
such Distribution Date, the Trustee shall allocate the Applied Realized Loss
Amount for the Certificates to reduce the Certificate Principal Balances of the
Class C Certificates and the Subordinate Certificates in the following order of
priority:

          (i) to the Class C Certificates, until the Class C Certificate
Principal Balance is reduced to zero;

          (ii) to the Class B-3 Certificates until the Class B-3 Certificate
Principal Balance is reduced to zero;

          (iii) to the Class B-2 Certificates until the Class B-2 Certificate
Principal Balance is reduced to zero;

          (iv) to the Class B-1 Certificates until the Class B-1 Certificate
Principal Balance is reduced to zero;

          (v) to the Class M-6 Certificates until the Class M-6 Certificate
Principal Balance is reduced to zero;

          (vi) to the Class M-5 Certificates until the Class M-5 Certificate
Principal Balance is reduced to zero;

          (vii) to the Class M-4 Certificates until the Class M-4 Certificate
Principal Balance is reduced to zero;

          (viii) to the Class M-3 Certificates until the Class M-3 Certificate
Principal Balance is reduced to zero;

                                     -115-

<PAGE>

          (ix) to the Class M-2 Certificates until the Class M-2 Certificate
Principal Balance is reduced to zero; and

          (x) to the Class M-1 Certificates until the Class M-1 Certificate
Principal Balance is reduced to zero.

          (j) Subject to Section 9.02 hereof respecting the final distribution,
on each Distribution Date the Trustee shall make distributions to each
Certificateholder of record on the preceding Record Date either by wire transfer
in immediately available funds to the account of such holder at a bank or other
entity having appropriate facilities therefor, if such Holder has so notified
the Trustee at least five (5) Business Days prior to the related Record Date or,
if not, by check mailed by first class mail to such Certificateholder at the
address of such holder appearing in the Certificate Register. Notwithstanding
the foregoing, but subject to Section 9.02 hereof respecting the final
distribution, distributions with respect to Certificates registered in the name
of a Depository shall be made to such Depository in immediately available funds.

     In accordance with this Agreement, the Servicer shall prepare and deliver
an electronic report (the "Remittance Report") to the Trustee (or by such other
means as the Servicer and the Trustee may agree from time to time) containing
such data and information as to permit the Trustee to prepare the Monthly
Statement to Certificateholders and make the required distributions for the
related Distribution Date. The Trustee will prepare the Monthly Report based
solely upon the information received from the Servicer.

          (k) The Trustee is hereby directed by the Depositor to execute the
Corridor Contracts on behalf of the Issuing Entity in the form presented to it
by the Depositor and shall have no responsibility for the contents of such
Corridor Contracts, including, without limitation, the representations and
warranties contained therein. Any funds payable by the Trustee under the
Corridor Contracts at closing shall be paid by the Depositor. Notwithstanding
anything to the contrary contained herein or in any Corridor Contract, except as
set forth in Section 2 of each Corridor Contract, the Trust shall not be
required to make any payments to the counterparty under any Corridor Contract.
Any payments received under the terms of the related Corridor Contract will be
available to pay the holders of the related Class A-1, Class A-2, Class M and
Class B Certificates up to the amount of any Floating Rate Certificate
Carryovers remaining after all other distributions required under this Section
4.04 are made on such Distribution Date, other than Floating Rate Certificate
Carryovers attributable to the fact that Applied Realized Loss Amounts are not
allocated to the Class A Certificates. Any amounts received under the terms of
any Corridor Contract on a Distribution Date that are not used to pay such
Floating Rate Certificate Carryovers will be distributed to the holders of the
Class C Certificates. Payments in respect of such Floating Rate Certificate
Carryovers from proceeds of a Corridor Contract shall be paid to the related
Classes of Class A-1, Class A-2, Class M and Class B Certificates, pro rata
based upon such Floating Rate Certificate Carryovers for each such class of
Class A-1, Class A-2, Class M and Class B Certificates. Amounts received on the
Class A-1 Corridor Contract will only be available to make payments on the Class
A-1 Certificates, amounts received on the Class A-2 Corridor Contract will only
be available to make payments on the Class A-2 Certificates, amounts received on
the Subordinate Certificate Corridor Contract will only be available to make
payments on the Subordinate Certificates.

          (i) The Trustee shall establish and maintain, for the benefit of the
Issuing Entity and the Certificateholders, the Corridor Contract Account. On or
prior to the related Corridor Contract Termination Date, amounts, if any,
received by the Trustee for the benefit of the Issuing Entity in respect of the
related Corridor Contract shall be deposited by the Trustee into the Corridor
Contract Account and

                                     -116-

<PAGE>

will be used to pay Floating Rate Certificate Carryovers on the related Class
A-1, Class A-2, Class M and Class B Certificates to the extent provided in the
immediately preceding paragraph. With respect to any Distribution Date on or
prior to the related Corridor Contract Termination Date, the amount, if any,
payable by the Cap Contract Counterparty under the related Corridor Contract
will equal the product of (i) the excess of (x) One-Month LIBOR (as determined
by the Cap Contract Counterparty and subject to a cap equal to the rate with
respect to such Distribution Date as shown under the heading "1ML Upper Collar"
in the schedule to the related Corridor Contract), over (y) the rate with
respect to such Distribution Date as shown under the heading "1ML Strike Lower
Collar" in the schedule to the related Corridor Contract, (ii) an amount equal
to the lesser of (x) the related Corridor Contract Notional Balance for such
Distribution Date and (y) the outstanding Certificate Principal Balance of the
related classes of Certificates and (iii) the number of days in such Accrual
Period, divided by 360. If a payment is made to the Issuing Entity under a
Corridor Contract and the Trustee is required to distribute excess amounts to
the holders of the Class C Certificates as described above, information
regarding such distribution will be included in the monthly statement made
available on the Trustee's website pursuant to Section 4.05(b) hereof.

          (ii) Amounts on deposit in the Corridor Contract Account will remain
uninvested pending distribution to Certificateholders.

          (iii) Each Corridor Contract is scheduled to remain in effect until
the related Corridor Contract Termination Date and will be subject to early
termination only in limited circumstances. Such circumstances include certain
insolvency or bankruptcy events in relation to the Cap Contract Counterparty
(after a grace period of three Local Business Days, as defined in the related
Corridor Contract, after notice of such failure is received by the Cap Contract
Counterparty) to make a payment due under the related Corridor Contract, the
failure by the Cap Contract Counterparty (after a cure period of twenty (20)
days after notice of such failure is received) to perform any other agreement
made by it under the related Corridor Contract, the termination of the Trust
Fund and the related Corridor Contract becoming illegal or subject to certain
kinds of taxation.

          (iv) On the Closing Date, the Cap Contract Counterparty and the
Trustee (which is hereby authorized and directed to enter into such credit
support annex) will enter into a credit support annex in relation to the
Corridor Contracts, which annex is intended to protect the Issuing Entity from
certain ratings downgrades that might hinder the ability of the Cap Contract
Counterparty to continue its obligations under the Corridor Contracts.

     Pursuant to and in accordance with the terms and provisions of the Corridor
Contracts, the Cap Contract Counterparty may be required to post additional
collateral in connection with its obligations under the Corridor Contracts. In
connection with the foregoing, the Trustee shall establish a Corridor Posted
Collateral Account on the Closing Date.

     To the extent that the Cap Contract Counterparty remits any Posted
Collateral to the Trustee under the Corridor Contracts, the Trustee shall, upon
receipt of the Posted Collateral, deposit the Posted Collateral into the
Corridor Posted Collateral Account and shall hold, release and disburse such
collateral in accordance with the terms and provisions of the Corridor
Contracts. Where a termination event occurs with respect to the Cap Contract
Counterparty under the Corridor Contracts, or where the Cap Contract
Counterparty fulfills certain obligations to the Issuing Entity such as finding
a replacement cap contract counterparty or a guarantor that meets the criteria
described in the Corridor Contracts, the Trustee shall make payments from the
Corridor Posted Collateral Account in accordance with the provisions of the

                                     -117-

<PAGE>

Corridor Contract. Amounts held in the Corridor Posted Collateral Account will
not be part of the Trust Fund and will not be available for distribution to any
Certificateholders, except to the extent distributed to the Corridor Contract
Account pursuant to the Corridor Contracts. Any funds held in the Corridor
Posted Collateral Account shall be invested by the Trustee in Eligible
Investments in accordance with the instructions of the Cap Contract
Counterparty. Any earnings shall be remitted to the Cap Contract Counterparty in
accordance with the Corridor Contracts. The Trustee shall not be responsible for
any losses. Absent receipt by the Trustee of written instructions from the Cap
Contract Counterparty, such funds shall remain uninvested.

          (l) On the Closing Date, the Supplemental Interest Trust shall be
established and maintained pursuant to this Agreement, as a separate trust, the
corpus of which shall be held by the Supplemental Interest Trust Trustee for the
benefit of the holders of the Certificates as a segregated subtrust of the Trust
Fund. The Supplemental Interest Trust shall be an Eligible Account, and funds
deposited therein shall be held separate and apart from, and shall not be
commingled with, any other moneys, including, without limitation, other moneys
of the Trustee or the Supplemental Interest Trust Trustee held pursuant to this
Agreement. In no event shall any funds deposited in the Supplemental Interest
Trust be credited to or made available to any other account of the Trust Fund.
The records of the Trustee shall at all times reflect that the Supplemental
Interest Trust is a subtrust of the Trust Fund, the assets of which are
segregated from other assets of the Trust Fund.

     The Supplemental Interest Trust Trustee is hereby directed by the Depositor
to execute the Swap Agreement on behalf of the Supplemental Interest Trust in
the forms presented to it by the Depositor and shall have no responsibility for
the contents of such Swap Agreement, including, without limitation, the
representations and warranties contained therein. The Supplemental Interest
Trust Trustee shall have all of the rights and protections of the Trustee
hereunder.

     The Supplemental Interest Trust Trustee shall enforce all of the rights of
the Supplemental Interest Trust and exercise any remedies under the Swap
Agreement and, in the event the Swap Agreement is terminated as a result of the
designation by either party thereto of an Early Termination Date (as defined in
the Swap Agreement), find a replacement counterparty to enter into a replacement
swap agreement utilizing the amounts of the net Swap Termination Payments
received.

     For each Distribution Date, through and including the Distribution Date in
April 2012, the Supplemental Interest Trust Trustee shall, based on the
Significance Estimate (which shall be provided to the Trustee by the Depositor
within five (5) Business Days prior to the Distribution Date), calculate the
Significance Percentage of each of the Swap Agreement. If on any such
Distribution Date, the Significance Percentage is equal to or greater than 9%,
the Supplemental Interest Trust Trustee shall promptly notify the Depositor and
the Depositor, on behalf of the Supplemental Interest Trust Trustee, shall
obtain the financial information required to be delivered by the Swap
Counterparty pursuant to the terms of the Swap Agreement. If, on any succeeding
Distribution Date through and including the Distribution Date in April 2012, the
Significance Percentage is equal to or greater than 10%, the Supplemental
Interest Trust Trustee shall promptly notify the Depositor and the Depositor
shall, within five (5) Business Days of such Distribution Date, deliver to the
Supplemental Interest Trust Trustee the financial information provided to it by
the Swap Counterparty in EDGAR-compatible format (or such other word processing
format that is EDGAR-compatible) for inclusion in the Form 10-D relating to such
Distribution Date.

                                     -118-

<PAGE>

     Any Swap Termination Payment received by the Supplemental Interest Trust
Trustee shall be deposited in the Swap Account and shall be used to make any
upfront payment required under a replacement swap agreement and any upfront
payment received from the counterparty to a replacement swap agreement shall be
used to pay any Swap Termination Payment owed to the Swap Counterparty.

     Notwithstanding anything contained herein, in the event that a replacement
swap agreement cannot be obtained within thirty (30) days after receipt by the
Supplemental Interest Trust Trustee of the Swap Termination Payment paid by the
terminated Swap Counterparty, the Supplemental Interest Trust Trustee shall
deposit such Swap Termination Payment into a separate, segregated non-interest
bearing subtrust established by the Supplemental Interest Trust Trustee and the
Supplemental Interest Trust Trustee shall, on each Distribution Date following
receipt of such Swap Termination Payment, withdraw from such subtrust, an amount
equal to the Net Swap Payment, if any, that would have been paid to the
Supplemental Interest Trust by the original Swap Counterparty (computed in
accordance with the original Swap Agreement) and distribute such amount in
accordance with Section 4.04(l)(i)-(viii) of this Agreement. Any such subtrust
shall not be an asset of any REMIC. Any amounts remaining in such subtrust shall
be distributed to the holders of the Class C Certificates on the Distribution
Date following the earlier of (i) the termination of the Trust Fund pursuant to
Section 9.01 and (ii) April 25, 2012.

     On any Distribution Date (or in the case of any Net Swap Payments, on the
related Swap Payment Date), any Swap Termination Payments or Net Swap Payments
owed to the Swap Counterparty will be paid out of and any Net Swap Payments or
Swap Termination Payments received from the Swap Counterparty will be deposited
into the Swap Account (an account within the Supplemental Interest Trust). The
Supplemental Interest Trust will not be an asset of any REMIC. Funds in the Swap
Account within the Supplemental Interest Trust shall be distributed in the
following order of priority by the Trustee:

          (i) to the Swap Counterparty, all Net Swap Payments, if any, owed to
the Swap Counterparty for such Distribution Date;

          (ii) to the Swap Counterparty, any Swap Termination Payment, other
than a Defaulted Swap Termination Payment, if any, owed to the Swap
Counterparty;

          (iii) to each class of the Class A Certificates, on a pro rata basis,
any Current Interest and any Interest Carry Forward Amount with respect to such
class to the extent unpaid;

          (iv) sequentially, to the Class M-1 Certificates, the Class M-2
Certificates, the Class M-3 Certificates, the Class M-4 Certificates, the Class
M-5 Certificates, the Class M-6 Certificates, the Class B-1 Certificates, the
Class B-2 Certificates and the Class B-3 Certificates, in that order, any
Current Interest for such class to the extent unpaid;

          (v) sequentially, to the Class M-1 Certificates, the Class M-2
Certificates, the Class M-3 Certificates, the Class M-4 Certificates, the Class
M-5 Certificates, the Class M-6 Certificates, the Class B-1 Certificates, the
Class B-2 Certificates and the Class B-3 Certificates, in that order, any
Interest Carry Forward with respect to such class to the extent unpaid;

          (vi) to the Class A, Class R, Class M and Class B Certificates, to pay
principal as described and in the same manner and order of priority as set forth
in Sections 4.04(d)(iii) through

                                     -119-

<PAGE>

4.04(d)(xii) in order to restore levels of the Overcollateralization Amount, and
after giving effect to distributions from Principal Distribution Amount for each
such Class;

          (vii) sequentially, to the Class M-1 Certificates, the Class M-2
Certificates, the Class M-3 Certificates, the Class M-4 Certificates, the Class
M-5 Certificates, the Class M-6 Certificates, the Class B-1 Certificates, the
Class B-2 Certificates and the Class B-3 Certificates, in that order, any Unpaid
Realized Loss Amount for such class to the extent unpaid;

          (viii) to the Class A, Class R, Class M and Class B Certificates, on a
pro rata basis, any Floating Rate Certificate Carryover to the extent not paid
based on the amount of such unpaid Floating Rate Certificate Carryover;

          (ix) to the Swap Counterparty, any Defaulted Swap Termination Payment
owed to the Swap Counterparty to the extent not already paid; and

          (x) to the Class C Certificates any remaining amount.

     Notwithstanding the foregoing, however, after giving effect to proposed
distributions on any Distribution Date, the sum of the cumulative amounts
distributed pursuant to clause (vi) above and the cumulative amounts distributed
pursuant to clause (vii) above shall be limited to the aggregate amount of
cumulative Realized Losses incurred from the Cut-off Date through the last day
of the related Prepayment Period.

     Upon termination of the Trust Fund, any amounts remaining in the Swap
Account within the Supplemental Interest Trust shall be distributed pursuant to
the priorities set forth in this Section 4.04(l).

     With respect to the failure of the Swap Counterparty to perform any of its
obligations under the Swap Agreement, the breach by the Swap Counterparty of any
of its representations and warranties made pursuant to the Swap Agreement, or
the termination of the Swap Agreement, the Supplemental Interest Trust Trustee
shall send any notices and make any demands required hereunder (to the extent
that a Responsible Officer of the Trustee has actual knowledge or written notice
of any such failure, breach or termination).

     On the Closing Date, the Swap Counterparty and the Supplemental Interest
Trust Trustee (which is hereby authorized and directed to enter into such credit
support annex) will enter into a credit support annex in relation to the Swap
Agreement, which annex is intended to protect the Supplemental Interest Trust
from certain ratings downgrades that might hinder the ability of the Swap
Counterparty to continue its obligations under the Swap Agreement.

     Pursuant to and in accordance with the terms and provisions of the Swap
Agreement, the Swap Counterparty may be required to post additional collateral
in connection with its obligations under the Swap Agreement. In connection with
the foregoing, on the Closing Date, the Supplemental Interest Trust Trustee
shall establish and maintain a Swap Posted Collateral Account.

     To the extent that the Swap Counterparty remits any Posted Collateral to
the Supplemental Interest Trust Trustee under the Swap Agreement, the
Supplemental Interest Trust Trustee shall, upon receipt of the Posted
Collateral, deposit the Posted Collateral into the Swap Posted Collateral
Account and shall hold, release and disburse such collateral in accordance with
the terms and provisions of the

                                     -120-

<PAGE>

Swap Agreement. Where a termination event occurs with respect to the Swap
Counterparty under the Swap Agreement, or where the Swap Counterparty fulfills
certain obligations to the Supplemental Interest Trust such as finding a
replacement swap counterparty or a guarantor that meets established criteria of
the Rating Agencies, the Supplemental Interest Trust Trustee shall make payments
from the Swap Posted Collateral Account in accordance with the provisions of the
Swap Agreement. Amounts held in the Swap Posted Collateral Account will not be
part of the Trust Fund and will not be available for distribution to any
Certificateholders, except to the extent distributed to the Swap Account
pursuant to the Swap Agreement. Any funds held in the Swap Posted Collateral
Account shall be invested by the Trustee in Eligible Investments in accordance
with the instructions of the Swap Counterparty. Any earnings shall be remitted
to the Swap Counterparty in accordance with the Swap Agreement. The Trustee
shall not be responsible for any losses. Absent receipt by the Trustee of
written instructions from the Swap Counterparty, such funds shall remain
uninvested.

     SECTION 4.05. Monthly Statements to Certificateholders

          (a) Not later than each Distribution Date, the Trustee shall prepare
and make available on its website located at www.etrustee.net to each Holder of
a Class of Certificates of the Issuing Entity, the Servicer, the Trustee, the
Rating Agencies, the Depositor, the Cap Contract Counterparty and the Swap
Counterparty a statement setting forth for the Certificates the following
information; provided, however, that with respect to any calendar year during
which an annual report on Form 10-K is not required to be filed with the
Commission on behalf of the Issuing Entity, the information set forth in Items
(xxiv) through (xxxii) below are not required to be included in such statement
during any calendar year:

          (i) the amount of the related distribution to Holders of each Class
allocable to principal, separately identifying (A) the aggregate amount of any
Principal Prepayments included therein, (B) the aggregate of all scheduled
payments of principal included therein, (C) the Extra Principal Distribution
Amount, if any, and (D) the aggregate amount of Prepayment Charges, if any;

          (ii) the amount of such distribution to Holders of each Class
allocable to interest, together with any Non-Supported Interest Shortfalls
allocated to each Class;

          (iii) any interest Carryforward Amount for each Class of the Class A,
Class M and Class B Certificates;

          (iv) the Class Certificate Principal Balance of each Class after
giving effect (i) to all distributions allocable to principal on such
Distribution Date and (ii) the allocation of any Applied Realized Loss Amounts
for such Distribution Date;

          (v) the Pool Stated Principal Balance for such Distribution Date;

          (vi) the amount of the Servicing Fee paid to or retained by the
Servicer and any amounts constituting reimbursement or indemnification of the
Servicer or Trustee;

          (vii) the Pass-Through Rate for each Class of Certificates for such
Distribution Date;

          (viii) the amount of Advances included in the distribution on such
Distribution Date or reimbursed during the period;

                                     -121-

<PAGE>

          (ix) the cumulative amount of (A) Realized Losses and (B) Applied
Realized Loss Amounts to date, in the aggregate and with respect to the Group
One Mortgage Loans and Group Two Mortgage Loans;

          (x) the amount of (A) Realized Losses and (B) Applied Realized Loss
Amounts with respect to such Distribution Date, in the aggregate and with
respect to the Group One Mortgage Loans and Group Two Mortgage Loans;

          (xi) the number and aggregate principal amounts of Mortgage Loans (A)
Delinquent (exclusive of Mortgage Loans in foreclosure) (1) 31 to 60 days, (2)
61 to 90 days and (3) 91 or more days, and (B) in foreclosure and Delinquent (1)
31 to 60 days, (2) 61 to 90 days and (3) 91 or more days, in each case as of the
close of business on the last day of the calendar month preceding such
Distribution Date, in the aggregate and with respect to the Group One Mortgage
Loans and Group Two Mortgage Loans in accordance with the OTS methodology for
reporting delinquencies;

          (xii) with respect to any Mortgage Loan that became an REO Property
during the preceding calendar month, the loan number and Stated Principal
Balance of such Mortgage Loan as of the close of business on the last day of the
calendar month preceding such Distribution Date, in the aggregate and with
respect to the Group One Mortgage Loans and Group Two Mortgage Loans;

          (xiii) the total number and principal balance of any REO Properties as
of the close of business on the last day of the calendar month preceding such
Distribution Date, in the aggregate and with respect to the Group One Mortgage
Loans and Group Two Mortgage Loans;

          (xiv) the aggregate Stated Principal Balance of all loans that became
Liquidated Loans as of such Distribution Date calculated as of the preceding
Distribution Date, in the aggregate and with respect to the Group One Mortgage
Loans and Group Two Mortgage Loans;

          (xv) whether a Stepdown Trigger Event has occurred and is in effect;

          (xvi) with respect to each Class of Certificates, any Interest Carry
Forward Amount with respect to such Distribution Date for each such Class, any
Interest Carry Forward Amount paid for each such Class and any remaining
Interest Carry Forward Amount for each such Class;

          (xvii) the number and Stated Principal Balance (as of the preceding
Distribution Date) of any Mortgage Loans which were purchased or repurchased
during the preceding Prepayment Period and since the Cut-off Date;

          (xviii) the number of Mortgage Loans prepaid in full for which
Prepayment Charges were received during the related Prepayment Period and, for
each such Mortgage Loan, the amount of Prepayment Charges received during the
related Prepayment Period and in the aggregate of such amounts for all such
Mortgage Loans since the Cut-off Date, and for partial Principal Prepayments,
the amount received during the preceding calendar month;

          (xix) the amount and purpose of any withdrawal from the Collection
Account pursuant to Section 3.08(a)(viii);

                                     -122-

<PAGE>

          (xx) the amount of any payments to each Class of Certificates that are
treated as payments received in respect of a REMIC "regular interest" or REMIC
"residual interest" and the amount of any payments to each Class of Certificates
that are not treated as payments received in respect of a REMIC "regular
interest" or REMIC "residual interest";

          (xxi) as of each Distribution Date, the amount, if any, to be
deposited in the Issuing Entity pursuant to the related Corridor Contract as
described in Section 4.04(k) and the amount thereof to be paid to the Class A-1
Certificates, the Class A-2 Certificates, the Subordinate Certificates and the
Class C Certificates described in Section 4.04(k) hereof;

          (xxii) as of each Distribution Date, the amount, if any, to be
deposited in the Supplemental Interest Trust pursuant to the Swap Agreement as
described in Section 4.04(l) and the amount thereof to be paid to the
Certificates;

          (xxiii) any Floating Rate Certificate Carryover paid and all Floating
Rate Certificate Carryover remaining on each class of the Class A, Class M and
Class B Certificates on such Distribution Date;

          (xxiv) the number of Mortgage Loans with respect to which (i) a
reduction in the Mortgage Rate has occurred or (ii) the related borrower's
obligation to repay interest on a monthly basis has been suspended or reduced
pursuant to the Relief Act; and the amount of interest not required to be paid
with respect to any such Mortgage Loans during the related Due Period as a
result of such reductions in the aggregate and with respect to the Group One
Mortgage Loans and the Group Two Mortgage Loans;

          (xxv) with respect to each Class of Certificates, the amount of any
Non-Supported Interest Shortfalls on such Distribution Date;

          (xxvi) the number and amount of pool assets at the beginning and
ending of each period, and updated pool composition information;

          (xxvii) any material changes to methodology regarding calculations of
delinquencies and charge-offs;

          (xxviii) information on the amount of Servicing Advances made or
reimbursed during the period;

          (xxix) any material modifications, extensions or waivers to pool asset
terms, fees, penalties or payments during the distribution period or that have
cumulatively become material over time;

          (xxx) material breaches of pool asset representations or warranties or
transaction covenants;

          (xxxi) information on ratio, coverage or other tests used for
determining any early amortization, liquidation or other performance trigger and
whether the trigger was met; and

          (xxxii) information regarding any pool asset changes (other than in
connection with a pool asset converting into cash in accordance with its terms),
such as pool asset substitutions and

                                     -123-

<PAGE>

repurchases (and purchase rates, if applicable), and cash flows available for
future purchases, such as the balances of any prefunding or revolving accounts,
if applicable.

          (b) The Trustee will make the Monthly Statement (and, at its option,
any additional files containing the same information in an alternative format)
available each month to Certificateholders, other parties to this Agreement and
any other interested parties via the Trustee's Internet website. The Trustee's
Internet website shall initially be located at "www.etrustee.net". Assistance in
using the website can be obtained by calling the Trustee at (312) 992-0668.
Parties that are unable to use the website are entitled to have a paper copy
mailed to them via first class mail by calling the customer service desk and
indicating such. The Trustee shall have the right to change the way the monthly
statements to Certificateholders are distributed in order to make such
distribution more convenient and/or more accessible to the above parties and the
Trustee shall provide timely and adequate notification to all above parties
regarding any such changes.

     The foregoing information and reports shall be prepared and determined by
the Trustee based on Mortgage Loan data and other information provided to the
Trustee by the Servicer, the Swap Counterparty, the Cap Contract Counterparty or
any other third party required to deliver information hereunder. In preparing or
furnishing the foregoing information, the Trustee shall be entitled to rely
conclusively on the accuracy of the information or data provided to the Trustee
by the Servicer, the Swap Counterparty, the Cap Contract Counterparty or any
other third party required to deliver information and shall have no liability
for any errors in any such information.

     As a condition to access the Trustee's internet website, the Trustee may
require registration and the acceptance of a disclaimer. The Trustee will not be
liable for the dissemination of information in accordance with this Agreement.

          (c) If so requested in writing within a reasonable period of time
after the end of each calendar year, the Trustee shall make available on its
website or cause to be furnished to each Person who at any time during the
calendar year was a Certificateholder of record, a statement containing the
information set forth in clauses (a)(i) and (a)(ii) of this Section 4.05
aggregated for such calendar year or applicable portion thereof during which
such Person was a Certificateholder. Such obligation of the Trustee shall be
deemed to have been satisfied to the extent that substantially comparable
information shall be provided by the Trustee pursuant to any requirements of the
Code as are from time to time in effect.

          (d) Upon filing with the Internal Revenue Service, the Trustee shall
furnish to the Holders of the Class R Certificate each Form 1066Q and shall
respond promptly to written requests made not more frequently than quarterly by
any Holder of Class R Certificate with respect to the following matters:

          (i) The original projected principal and interest cash flows on the
Closing Date on each Class of regular and residual interests created hereunder
and on the Mortgage Loans, based on the Prepayment Assumption;

          (ii) The projected remaining principal and interest cash flows as of
the end of any calendar quarter with respect to each Class of regular and
residual interests created hereunder and the Mortgage Loans, based on the
Prepayment Assumption;

                                     -124-

<PAGE>

          (iii) The Prepayment Assumption and any interest rate assumptions used
in determining the projected principal and interest cash flows described above;

          (iv) The original issue discount (or, in the case of the Mortgage
Loans, market discount) or premium accrued or amortized through the end of such
calendar quarter with respect to each Class of regular or residual interests
created hereunder and to the Mortgage Loans, together with each constant yield
to maturity used in computing the same;

          (v) The treatment of losses realized with respect to the Mortgage
Loans or the regular interests created hereunder, including the timing and
amount of any cancellation of indebtedness income of the REMICs with respect to
such regular interests or bad debt deductions claimed with respect to the
Mortgage Loans;

          (vi) The amount and timing of any non-interest expenses of the REMICs;
and

          (vii) Any taxes (including penalties and interest) imposed on the
REMICs, including, without limitation, taxes on "prohibited transactions,"
"contributions" or "net income from foreclosure property" or state or local
income or franchise taxes.

     The information pursuant to clauses (i), (ii), (iii) and (iv) above shall
be provided by the Depositor pursuant to Section 8.12.

                                    ARTICLE V

                                THE CERTIFICATES

     SECTION 5.01. The Certificates

     The Certificates shall be substantially in the forms attached hereto as
exhibits. The Certificates shall be issuable in registered form, in the minimum
dollar denominations, integral dollar multiples in excess thereof (except that
one Certificate of each Class may be issued in a different amount which must be
in excess of the applicable minimum dollar denomination) and aggregate dollar
denominations as set forth in the following table:

<TABLE>
<CAPTION>
           Minimum     Integral Multiples in   Original Certificate
Class   Denomination     Excess of Minimum       Principal Balance
-----   ------------   ---------------------   --------------------
<S>     <C>            <C>                     <C>
A-1      $25,000.00            $1.00               $588,366,000
A-2A     $25,000.00            $1.00               $424,412,000
A-2B     $25,000.00            $1.00               $233,167,000
A-2C     $25,000.00            $1.00               $261,537,000
A-2D     $25,000.00            $1.00               $108,238,000
M-1      $25,000.00            $1.00               $ 79,084,000
M-2      $25,000.00            $1.00               $ 78,083,000
M-3      $25,000.00            $1.00               $ 25,027,000
M-4      $25,000.00            $1.00               $ 31,033,000
M-5      $25,000.00            $1.00               $ 26,028,000
M-6      $25,000.00            $1.00               $ 20,021,000
B-1      $25,000.00            $1.00               $ 22,024,000
</TABLE>

                                     -125-

<PAGE>

<TABLE>
<CAPTION>
           Minimum     Integral Multiples in   Original Certificate
Class   Denomination     Excess of Minimum       Principal Balance
-----   ------------   ---------------------   --------------------
<S>     <C>            <C>                     <C>
B-2      $25,000.00            $1.00               $ 16,017,000
B-3      $25,000.00            $1.00               $ 24,025,000
R        $   100.00              N/A               $     100.00
C                (1)              (1)                       100%
P                (2)              (2)                        (2)
</TABLE>

----------
(1)  The Class C Certificates shall not have minimum dollar denominations as the
     Certificate Principal Balance thereof shall vary over time as described
     herein and shall be issued in a minimum percentage interest of 25% and an
     aggregate percentage interest of 100%.

(2)  The Class P Certificates shall not have minimum dollar denominations or
     Certificate Principal Balances and shall be issued in a minimum percentage
     interest of 100%.

     The Certificates shall be executed by manual or facsimile signature on
behalf of the Trustee by an authorized officer. Certificates bearing the manual
or facsimile signatures of individuals who were, at the time when such
signatures were affixed, authorized to sign on behalf of the Trustee shall bind
the Issuing Entity, notwithstanding that such individuals or any of them have
ceased to be so authorized prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of such authentication and
delivery. No Certificate shall be entitled to any benefit under this Agreement,
or be valid for any purpose, unless there appears on such Certificate a
certificate of authentication substantially in the form set forth as attached
hereto executed by the Authenticating Agent by manual signature, and such
certificate of authentication upon any Certificate shall be conclusive evidence,
and the only evidence, that such Certificate has been duly authenticated and
delivered hereunder. All Certificates shall be dated the date of their
authentication. On the Closing Date, the Authenticating Agent shall authenticate
the Certificates to be issued at the written direction of the Depositor, or any
Affiliate thereof.

     The Certificates sold in offshore transactions in reliance on Regulation S
shall be issued initially in the form of one or more permanent global
certificates in definitive, fully registered form without interest coupons with
the applicable legends set forth in Exhibit A hereto added to the form of each
such Certificate (each, a "Regulation S Book-Entry Certificate"), which shall be
deposited on behalf of the Holders of such Certificates represented thereby with
the Trustee, as custodian for DTC and registered in the name of a nominee of
DTC, duly executed and authenticated by the Trustee and the Authenticating Agent
as hereinafter provided. The aggregate principal amounts of the Regulation S
Book-Entry Certificates may from time to time be increased or decreased by
adjustments made on the records of the Trustee or DTC or its nominee, as the
case may be, as hereinafter provided.

     The Certificates sold in reliance on Rule 144A shall be issued initially in
the form of one or more permanent global certificates in definitive, fully
registered form without interest coupons with the applicable legends set forth
in Exhibit A hereto added to the form of each such Certificate (each, a "Rule
144A Book-Entry Certificate"), which shall be deposited on behalf of the Holders
of such Certificates represented thereby with the Trustee, as custodian for DTC
and registered in the name of a nominee of DTC, duly executed and authenticated
by the Trustee and the Authenticating Agent as hereinafter provided. The
aggregate principal amounts of the Rule 144A Book-Entry Certificates may from
time to time be increased or decreased by adjustments made on the records of the
Trustee or DTC or its nominee, as the case may be, as hereinafter provided.

                                     -126-
<PAGE>

     SECTION 5.02. Certificate Register; Registration of Transfer and Exchange
of Certificates

          (a) The Trustee shall maintain, or cause to be maintained in
accordance with the provisions of Section 5.09 hereof, a Certificate Register
for the Issuing Entity in which, subject to the provisions of subsections (b)
and (c) below and to such reasonable regulations as it may prescribe, the
Trustee shall provide for the registration of Certificates and of Transfers and
exchanges of Certificates as herein provided. Upon surrender for registration of
Transfer of any Certificate, the Authenticating Agent shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Certificates of the same Class and of like aggregate Percentage Interest.

     At the option of a Certificateholder, Certificates may be exchanged for
other Certificates of the same Class in authorized denominations and evidencing
the same aggregate Percentage Interest upon surrender of the Certificates to be
exchanged at the office or agency of the Trustee. Whenever any Certificates are
so surrendered for exchange, the Trustee shall execute and the Authenticating
Agent shall authenticate and deliver the Certificates that the Certificateholder
making the exchange is entitled to receive. Every Certificate presented or
surrendered for registration of Transfer or exchange shall be accompanied by a
written instrument of Transfer in form satisfactory to the Trustee duly executed
by the holder thereof or his attorney duly authorized in writing.

     No service charge to the Certificateholders shall be made for any
registration of Transfer or exchange of Certificates, but payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any Transfer or exchange of Certificates may be required. All
Certificates surrendered for registration of Transfer or exchange shall be
canceled and subsequently destroyed by a Trustee in accordance with such
Trustee's customary procedures.

     No Transfer of a Class C or Class P Certificate shall be made unless such
Transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under the Securities Act and such state securities
laws. In the event that a Transfer is to be made in reliance upon an exemption
from the Securities Act and such laws, in order to assure compliance with the
Securities Act and such laws, the Certificateholder desiring to effect such
Transfer and such Certificateholder's prospective transferee shall (except with
respect to the initial transfer of a Class C or Class P Certificate by Merrill
Lynch & Co. or, in connection with a transfer of a Class C or Class P
Certificate to the indenture trustee under an Indenture pursuant to which NIM
Notes are issued whether or not such notes are guaranteed by the NIMs Insurer)
each certify to the Trustee in writing the facts surrounding the Transfer in
substantially the form set forth in Exhibit F (the "Transferor Certificate") and
(i) deliver a letter in substantially the form of either Exhibit G (the
"Investment Letter") or Exhibit H (the "Rule 144A Letter") or (ii) there shall
be delivered to the Trustee an Opinion of Counsel that such Transfer may be made
pursuant to an exemption from the Securities Act, which Opinion of Counsel shall
not be an expense of the Depositor or the Trustee. The Depositor shall provide
to any Holder of a Class C or Class P Certificate and any prospective transferee
designated by any such Holder, information regarding the related Certificates
and the Mortgage Loans and such other information as shall be necessary to
satisfy the condition to eligibility set forth in Rule 144A(d)(4) for Transfer
of any such Certificate without registration thereof under the Securities Act
pursuant to the registration exemption provided by Rule 144A. The Trustee shall
cooperate with the Depositor in providing the Rule 144A information referenced
in the preceding sentence, including providing to the Depositor such information
in the possession of the Trustee regarding the Certificates, the Mortgage Loans
and other matters regarding the Trust Fund as the Depositor shall reasonably
request to meet its obligation under the preceding sentence. Each Holder of a
Class C or Class P Certificate desiring to

                                      -127-

<PAGE>

effect such Transfer shall, and does hereby agree to, indemnify the Depositor
and the Trustee against any liability that may result if the Transfer is not so
exempt or is not made in accordance with such federal and state laws.

     By acceptance of a Regulation S Global Security, whether upon original
issuance or subsequent transfer, each Holder of such a Certificate acknowledges
the restrictions on the transfer of such Certificate set forth thereon and
agrees that it will only transfer such a Certificate as provided herein. In
addition, each Holder of a Regulation S Global Security shall be deemed to have
represented and warranted to the Depositor, the Trustee and any of their
respective successors that: (i) such Person is not a "U.S. person" within the
meaning of Regulation S and was, at the time the buy order was originated,
outside the United States and (ii) such Person understands that such
Certificates have not been registered under the Securities Act and that (x)
until the expiration of the 40-day distribution compliance period (within the
meaning of Regulation S), no offer, sale, pledge or other transfer of such
Certificates or any interest therein shall be made in the United States or to or
for the account or benefit of a U.S. person (each as defined in Regulation S),
(y) if in the future it decides to offer, resell, pledge or otherwise transfer
such Certificates, such Certificates may be offered, resold, pledged or
otherwise transferred only (A) to a person which the seller reasonably believes
is a "qualified institutional buyer" as defined in Rule 144A under the
Securities Act, that is purchasing such Certificates for its own account or for
the account of a qualified institutional buyer to which notice is given that the
transfer is being made in reliance on Rule 144A or (B) in an offshore
transaction (as defined in Regulation S) in compliance with the provisions of
Regulation S, in each case in compliance with the requirements of this
Agreement; and it will notify such transferee of the transfer restrictions
specified in this Section.

     No transfer of a Certificate that is neither an ERISA Restricted
Certificate nor a Class R Certificate shall be registered unless the transferee
provides the Trustee with a representation that either (i) such transferee is
not, and is not acting for, on behalf of or with any assets of, an employee
benefit plan or other arrangement subject to Title I of ERISA or plan subject to
Section 4975 of the Code, or (ii) until the termination of the Swap Agreement,
the acquisition and holding of the Certificate will not constitute or result in
a non-exempt prohibited transaction under Title I of ERISA or Section 4975 of
the Code.

     No transfer of an ERISA Restricted Certificate or a Class R Certificate
shall be registered unless the Trustee has received (A) a representation to the
effect that such transferee is not an employee benefit plan subject to Title I
of ERISA, a plan subject to Section 4975 of the Code or a plan subject to any
state, local, federal, non-U.S. or other law substantively similar to the
foregoing provisions of ERISA or the Code ("Similar Law"), and is not directly
or indirectly acquiring the ERISA Restricted Certificate or the Class R
Certificate by, on behalf of, or with any assets of any such plan (collectively,
"Plan"), or (B) solely in the case of ERISA Restricted Certificates, (I) if the
Certificate has been the subject of an ERISA-Qualifying Underwriting, a
representation to the effect that such transferee is an insurance company that
is acquiring the Certificate with assets of an "insurance company general
account," as defined in Section V(e) of Prohibited Transaction Class Exemption
("PTCE") 95-60, and the acquisition and holding of the Certificate are covered
and exempt under Sections I and III of PTCE 95-60, or (II) solely in the case of
an ERISA Restricted Certificate that is a Definitive Certificate, an Opinion of
Counsel satisfactory to the Trustee, and upon which the Trustee and the NIMs
Insurer shall be entitled to rely, to the effect that the acquisition and
holding of such Certificate will not constitute or result in a nonexempt
prohibited transaction under Title I of ERISA or Section 4975 of the Code, or a
violation of Similar Law, and will not subject the Trustee, the Servicer, the
NIMs Insurer or the Depositor to any obligation in addition to those expressly
undertaken in this Agreement, which Opinion of Counsel shall not be an expense
of the Trustee, the Servicer, the NIMs Insurer or the Depositor.

                                      -128-

<PAGE>

     Except in the case of a Definitive Certificate, the representations set
forth in the two immediately preceding paragraphs of this Subsection 5.02(a),
other than clause (B)(II) in the immediately preceding paragraph, shall be
deemed to have been made to the Trustee by the transferee's acceptance of a
Certificate (or the acceptance by a Certificate Owner of the beneficial interest
in any Class of Certificate).

     Notwithstanding any other provision herein to the contrary, any purported
transfer of a Certificate to or on behalf of a Plan without the delivery to the
Trustee of a representation or an Opinion of Counsel satisfactory to the Trustee
as described above shall be void and of no effect. The Trustee shall not be
under any liability to any Person for any registration or transfer of any
Certificate that is in fact not permitted by this Section 5.02(a), nor shall the
Trustee be under any liability for making any payments due on such Certificate
to the Holder thereof or taking any other action with respect to such Holder
under the provisions of this Agreement so long as the transfer was registered by
the Trustee in accordance with the foregoing requirements. The Trustee shall be
entitled, but not obligated, to recover from any Holder of any Certificate that
was in fact a Plan and that held such Certificate in violation of this Section
5.02(a) all payments made on such Certificate at and after the time it commenced
such holding. Any such payments so recovered shall be paid and delivered to the
last preceding Holder of such Certificate that is not a Plan.

          (b) Each Person who has or who acquires any Ownership Interest in a
Class R Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Class R
Certificate are expressly subject to the following provisions:

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

          (ii) No Ownership Interest in a Class R Certificate may be purchased,
transferred or sold, directly or indirectly, except in accordance with the
provisions hereof. No Ownership Interest in a Class R Certificate may be
registered on the Closing Date or thereafter transferred, and the Trustee shall
not register the Transfer of any Class R Certificate unless, in addition to the
certificates required to be delivered to the Trustee under subparagraph (a)
above, the Trustee shall have been furnished with an affidavit (a "Transfer
Affidavit") of the initial owner or the proposed transferee in the form attached
hereto as Exhibit E-1 and an affidavit of the proposed transferor in the form
attached hereto as Exhibit E-2. In the absence of a contrary instruction from
the transferor of a Class R Certificate, declaration (11) in Appendix A of the
Transfer Affidavit may be left blank. If the transferor requests by written
notice to the Trustee prior to the date of the proposed transfer that one of the
two other forms of declaration (11) in Appendix A of the Transfer Affidavit be
used, then the requirements of this Section 5.02(b)(ii) shall not have been
satisfied unless the Transfer Affidavit includes such other form of declaration.

          (iii) Each Person holding or acquiring any Ownership Interest in a
Class R Certificate shall agree (A) to obtain a Transfer Affidavit from any
other Person to whom such Person attempts to Transfer its Ownership Interest in
a Class R Certificate, (B) to obtain a Transfer Affidavit from any Person for
whom such Person is acting as nominee, trustee or agent in connection with any
Transfer of a Class R Certificate and (C) not to Transfer its Ownership Interest
in a Class R Certificate or to cause the Transfer of an Ownership Interest in a
Class R Certificate to any other Person if it has actual knowledge that such
Person is not a Permitted Transferee. Further, no transfer, sale or other
disposition of any Ownership Interest in a Class R Certificate may be made to a
person who is not a U.S. Person (within the

                                     -129-

<PAGE>

meaning of section 7701 of the Code) unless such person furnishes the transferor
and the Trustee with a duly completed and effective Internal Revenue Service
Form W-8ECI (or any successor thereto) and the Trustee consents to such
transfer, sale or other disposition in writing.

          (iv) Any attempted or purported Transfer of any Ownership Interest in
a Class R Certificate in violation of the provisions of this Section 5.02(b)
shall be absolutely null and void and shall vest no rights in the purported
transferee. If any purported transferee shall become a Holder of a Class R
Certificate in violation of the provisions of this Section 5.02(b), then the
last preceding Permitted Transferee shall be restored to all rights as Holder
thereof retroactive to the date of registration of Transfer of such Class R
Certificate. The Trustee shall be under no liability to any Person for any
registration of Transfer of a Class R Certificate that is in fact not permitted
by Section 5.02(a) and this Section 5.02(b) or for making any payments due on
such Certificate to the Holder thereof or taking any other action with respect
to such Holder under the provisions of this Agreement so long as the Transfer
was registered after receipt of the related Transfer Affidavit. The Trustee
shall be entitled but not obligated to recover from any Holder of a Class R
Certificate that was in fact not a Permitted Transferee at the time it became a
Holder or, at such subsequent time as it became other than a Permitted
Transferee, all payments made on such Class R Certificate at and after either
such time. Any such payments so recovered by the Trustee shall be paid and
delivered by the Trustee to the last preceding Permitted Transferee of such
Certificate.

          (v) At the option of the Holder of the Class R Certificate, the Class
SWR Interest, the Class LTR Interest and the residual interest in the Upper Tier
REMIC may be severed and represented by separate certificates (with the separate
certificate that represents the Residual Interest also representing all rights
of the Class R Certificate to distributions attributable to an interest rate on
the Class R Certificate in excess of the REMIC Pass-Through Rate); provided,
however, that such separate certification may not occur until the Trustee
receives an Opinion of Counsel to the effect that separate certification in the
form and manner proposed would not result in the imposition of federal tax upon
the Issuing Entity or any of the REMICs provided for herein or cause any of the
REMICs provided for herein to fail to qualify as a REMIC; and provided further,
that the provisions of Sections 5.02(a) and (b) will apply to each such separate
certificate as if the separate certificate were a Class R Certificate. If, as
evidenced by an Opinion of Counsel, it is necessary to preserve the REMIC status
of any of the REMICs provided for herein, the Class SWR Interest, the Class LTR
Interest and the residual interest in the Upper Tier REMIC shall be severed and
represented by separate certificates (with the separate certificate that
represents the Residual Interest also representing all rights of the Class R
Certificate to distributions attributable to an interest rate on the Class R
Certificate in excess of the REMIC Pass-Through Rate).

     The restrictions on Transfers of a Class R Certificate set forth in this
Section 5.02(b) shall cease to apply (and the applicable portions of the legend
on a Class R Certificate may be deleted) with respect to Transfers occurring
after delivery to the Trustee of an Opinion of Counsel, which Opinion of Counsel
shall not be an expense of the Issuing Entity, the Trustee or the Depositor, to
the effect that the elimination of such restrictions will not cause any of the
REMICs provided for herein to fail to qualify as a REMIC at any time that the
Certificates are outstanding or result in the imposition of any tax on the
Issuing Entity, any REMIC provided for herein, a Certificateholder or another
Person. Each Person holding or acquiring any Ownership Interest in a Class R
Certificate hereby consents to any amendment of this Agreement that, based on an
Opinion of Counsel furnished to the Trustee, is reasonably necessary (a) to
ensure that the record ownership of, or any beneficial interest in, a Class R
Certificate is not transferred, directly or indirectly, to a Person that is not
a Permitted Transferee and (b) to provide for a

                                     -130-

<PAGE>

means to compel the Transfer of a Class R Certificate that is held by a Person
that is not a Permitted Transferee to a Holder that is a Permitted Transferee.

          (c) The transferor of the Class R Certificate shall notify the Trustee
in writing upon the transfer of the Class R Certificate.

          (d) [Reserved].

          (e) The preparation and delivery of all certificates, opinions and
other writings referred to above in this Section 5.02 shall not be an expense of
the Issuing Entity, the Depositor or the Trustee.

     SECTION 5.03. Mutilated, Destroyed, Lost or Stolen Certificates

     If (a) any mutilated Certificate is surrendered to the Trustee or the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Certificate and of the ownership thereof and (b) there is delivered to
the Trustee such security or indemnity as may be required by them to save each
of them harmless, then, in the absence of notice to the Trustee that such
Certificate has been acquired by a bona fide purchaser, the Trustee shall
execute, authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
Class, tenor and Percentage Interest. In connection with the issuance of any new
Certificate under this Section 5.03, the Trustee may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other expenses (including the fees and expenses of
the Trustee and its counsel) connected therewith. Any replacement Certificate
issued pursuant to this Section 5.03 shall constitute complete and indefeasible
evidence of ownership in the Trust Fund, as if originally issued, whether or not
the lost, stolen or destroyed Certificate shall be found at any time. All
Certificates surrendered to the Trustee under the terms of this Section 5.03
shall be canceled and destroyed by the Trustee in accordance with its standard
procedures without liability on its part.

     SECTION 5.04. Persons Deemed Owners

     The NIMs Insurer, the Trustee and any agent of the NIMs Insurer or the
Trustee may treat the Person in whose name any Certificate is registered as the
owner of such Certificate for the purpose of receiving distributions as provided
in this Agreement and for all other purposes whatsoever, and neither the NIMs
Insurer nor the Trustee, nor any agent of the NIMs Insurer or the Trustee, shall
be affected by any notice to the contrary.

     SECTION 5.05. Access to List of Certificateholders' Names and Addresses

     If three or more Certificateholders (a) request such information in writing
from the Trustee, (b) state that such Certificateholders desire to communicate
with other Certificateholders with respect to their rights under this Agreement
or under the Certificates, and (c) provide a copy of the communication that such
Certificateholders propose to transmit or if the NIMs Insurer or the Depositor
shall request such information in writing from the Trustee, then the Trustee
shall, within ten Business Days after the receipt of such request, provide the
NIMs Insurer or the Depositor or such Certificateholders at such recipients'
expense the most recent list of the Certificateholders of the Issuing Entity
held by the Trustee, if any. The Depositor and every Certificateholder, by
receiving and holding a Certificate, agree that the Trustee shall

                                     -131-

<PAGE>

not be held accountable by reason of the disclosure of any such information as
to the list of the Certificateholders hereunder, regardless of the source from
which such information was derived.

     SECTION 5.06. Book-Entry Certificates

     The Regular Certificates, upon original issuance, shall be issued in the
form of one or more typewritten Certificates representing the Book-Entry
Certificates, to be delivered to the Depository by or on behalf of the
Depositor. The Class C, Class P and Class R Certificates shall be definitive
certificates. The Book-Entry Certificates shall initially be registered on the
Certificate Register in the name of the Depository or its nominee, and no
Certificate Owner of a Book-Entry Certificate will receive a definitive
certificate representing such Certificate Owner's interest in such Certificates,
except as provided in Section 5.08. Unless and until definitive, fully
registered Certificates ("Definitive Certificates") have been issued to the
Certificate Owners of the Book-Entry Certificates pursuant to Section 5.08:

          (a) the provisions of this Section shall be in full force and effect;

          (b) the Depositor, the NIMs Insurer and the Trustee may deal with the
Depository and the Depository Participants for all purposes (including the
making of distributions) as the authorized representative of the respective
Certificate Owners of the Book-Entry Certificates;

          (c) registration of the Book-Entry Certificates may not be transferred
by the Trustee except to another Depository;

          (d) the rights of the respective Certificate Owners of the Book-Entry
Certificates shall be exercised only through the Depository and the Depository
Participants and shall be limited to those established by law and agreements
between the Owners of the Book-Entry Certificates and the Depository and/or the
Depository Participants. Pursuant to the Depository Agreement, unless and until
Definitive Certificates are issued pursuant to Section 5.08, the Depository will
make book-entry transfers among the Depository Participants and receive and
transmit distributions of principal and interest on the related Certificates to
such Depository Participants;

          (e) the Depository may collect its usual and customary fees, charges
and expenses from its Depository Participants;

          (f) the Trustee may rely and shall be fully protected in relying upon
information furnished by the Depository with respect to its Depository
Participants; and

          (g) to the extent that the provisions of this Section conflict with
any other provisions of this Agreement, the provisions of this Section shall
control.

     For purposes of any provision of this Agreement requiring or permitting
actions with the consent of, or at the direction of, Certificateholders
evidencing a specified percentage of the aggregate unpaid principal amount of
any Class of Certificates, such direction or consent may be given by Certificate
Owners (acting through the Depository and the Depository Participants) owning
Book-Entry Certificates evidencing the requisite percentage of principal amount
of such Class of Certificates.

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<PAGE>

     In the event that Definitive Certificates are issued pursuant to Section
5.08, clauses (a) through (g) of this Section 5.06 shall continue to be
applicable with respect to all remaining Book-Entry Certificates.

     SECTION 5.07. Notices to Depository

     Whenever any notice or other communication is required to be given to
Certificateholders of the Class with respect to which Book-Entry Certificates
have been issued, unless and until Definitive Certificates shall have been
issued to the related Certificate Owners, the Trustee shall give all such
notices and communications to the Depository.

     SECTION 5.08. Definitive Certificates

     If, after Book-Entry Certificates have been issued with respect to any
Certificates, (a) the Depository or the Depositor advises the Trustee that the
Depository is no longer willing, qualified or able to discharge properly its
responsibilities under the Depository Agreement with respect to such
Certificates and the Trustee or the Depositor is unable to locate a qualified
successor, (b) the Depositor notifies the Trustee and the Depository of its
intent to terminate the book-entry system through the Depository and, upon
receipt of notice of such intent from the Depository, the Certificate Owners of
the Book-Entry Certificates agree to initiate such termination or (c) after the
occurrence and continuation of an Event of Default, Certificate Owners of such
Book-Entry Certificates having not less than 51% of the Voting Rights evidenced
by any Class of Book-Entry Certificates advise the Trustee and the Depository in
writing through the Depository Participants that the continuation of a
book-entry system with respect to Certificates of such Class through the
Depository (or its successor) is no longer in the best interests of the
Certificate Owners of such Class, then the Trustee shall notify all Certificate
Owners of such Book-Entry Certificates and the NIMs Insurer of the occurrence of
any such event and of the availability of Definitive Certificates to Certificate
Owners of such Class requesting the same. The Depositor shall provide the
Trustee with an adequate inventory of certificates to facilitate the issuance
and transfer of Definitive Certificates. Upon surrender to the Trustee of any
such Certificates by the Depository, accompanied by registration instructions
from the Depository for registration, the Authenticating Agent shall
authenticate and the Trustee shall deliver such Definitive Certificates. Neither
the Depositor nor the Trustee shall be liable for any delay in delivery of such
instructions and each may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of such Definitive
Certificates, all references herein to obligations imposed upon or to be
performed by the Depository shall be deemed to be imposed upon and performed by
the Trustee, to the extent applicable with respect to such Definitive
Certificates and the Trustee shall recognize the Holders of such Definitive
Certificates as Certificateholders hereunder.

     SECTION 5.09. Maintenance of Office or Agency

     The Trustee will maintain or cause to be maintained at its expense an
office or offices or agency or agencies where Certificates may be surrendered
for registration of transfer or exchange. The Trustee initially designates its
offices at 135 South LaSalle Street, Suite 1511, Chicago, Illinois 60603,
Attention: FFMER 2007-2 as offices for such purposes. The Trustee will give
prompt written notice to the Certificateholders of any change in such location
of any such office or agency.

     SECTION 5.10. Authenticating Agents

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<PAGE>

          (a) One or more Authenticating Agents (each, an "Authenticating
Agent") may be appointed hereunder each of which shall be authorized to act on
behalf of the Trustee in authenticating the Certificates. Wherever reference is
made in this Agreement to the authentication of Certificates by the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication on behalf of the Trustee by an Authenticating Agent and a
certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent must be an entity organized and
doing business under the laws of the United States of America or any state
thereof, having a combined capital and surplus of at least $15,000,000,
authorized under such laws to operate a trust business and subject to
supervision or examination by federal or state authorities. If the
Authenticating Agent is a party other than the Trustee, the Trustee shall have
no liability in connection with the performance or failure of performance of the
Authenticating Agent. LaSalle Bank National Association is hereby appointed as
the initial Authenticating Agent. The Trustee shall be the Authenticating Agent
during any such time as no other Authenticating Agent has been appointed and has
not resigned.

          (b) Any Person into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any Person resulting from any
merger, conversion or consolidation to which any Authenticating Agent shall be a
party, or any Person succeeding to the corporate agency business of any
Authenticating Agent, shall continue to be the Authenticating Agent without the
execution or filing of any paper or any further act on the part of the Trustee
or the Authenticating Agent.

          (c) Any Authenticating Agent may at any time resign by giving at least
30 days' advance written notice of resignation to the Trustee and the Depositor.
Except with respect to the initial Authenticating Agent, LaSalle Bank National
Association, which shall be the Authenticating Agent for so long as it is the
Trustee may at any time terminate the agency of any Authenticating Agent by
giving written notice of termination to such Authenticating Agent and the
Depositor. Upon receiving a notice of resignation or upon such a termination, or
in case at any time any Authenticating Agent shall cease to be eligible in
accordance within the provisions of this Section 5.10, the Trustee may appoint a
successor Authenticating Agent, shall give written notice of such appointment to
the Depositor and shall mail notice of such appointment to all Holders of
Certificates. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers, duties
and responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent. No successor Authenticating Agent
shall be appointed unless eligible under the provisions of this Section 5.10. No
Authenticating Agent shall have responsibility or liability for any action taken
by it as such at the direction of the Trustee.

                                   ARTICLE VI

                         THE DEPOSITOR AND THE SERVICER

     SECTION 6.01. Respective Liabilities of the Depositor and the Servicer

     The Depositor and the Servicer shall each be liable in accordance herewith
only to the extent of the obligations specifically and respectively imposed upon
and undertaken by them herein.

     SECTION 6.02. Merger or Consolidation of the Depositor or the Servicer

     Except as provided in the next paragraph, the Depositor and the Servicer
will each keep in full effect its existence, rights and franchises as a
corporation or banking association under the laws of the

                                     -134-

<PAGE>

United States or under the laws of one of the States thereof and will each
obtain and preserve its qualification to do business as a foreign corporation in
each jurisdiction in which such qualification is or shall be necessary to
protect the validity and enforceability of this Agreement, or any of the
Mortgage Loans and to perform its respective duties under this Agreement.

     Any Person into which the Depositor or the Servicer may be merged or
consolidated, or any Person resulting from any merger or consolidation to which
the Depositor or the Servicer shall be a party, or any Person succeeding to the
business of the Depositor or the Servicer, shall be the successor of the
Depositor or the Servicer, as the case may be, hereunder, without the execution
or filing of any paper or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding (except for the
execution of an assumption agreement where such succession is not effected by
operation of law); provided, however, that the successor or surviving Person to
the Servicer shall be qualified to sell mortgage loans to, and to service
mortgage loans on behalf of, Fannie Mae or Freddie Mac.

     SECTION 6.03. Limitation on Liability of the Depositor, the Servicer and
Others

     None of the Depositor, the Servicer nor any of the directors, officers,
employees or agents of the Depositor or the Servicer shall be under any
liability to the Issuing Entity or the Certificateholders for any action taken
or for refraining from the taking of any action in good faith pursuant to this
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Depositor, the Servicer or any such Person against any
breach of representations or warranties made by it herein or protect the
Depositor, the Servicer or any such Person from any liability that would
otherwise be imposed by reasons of willful misfeasance, bad faith or negligence
in the performance of duties or by reason of reckless disregard of obligations
and duties hereunder. The Depositor or the Servicer and any director, officer,
employee or agent of the Depositor or the Servicer may rely in good faith on any
document of any kind prima facie properly executed and submitted by any Person
respecting any matters arising hereunder. The Depositor or the Servicer and any
director, officer, employee or agent of the Depositor or the Servicer shall be
indemnified by the Issuing Entity and held harmless against any loss, liability
or expense, incurred in connection with the performance of their duties under
this Agreement or incurred in connection with any audit, controversy or judicial
proceeding relating to a governmental taxing authority or any legal action
relating to this Agreement or the Certificates, other than any loss, liability
or expense (i) incurred by reason of willful misfeasance, bad faith or
negligence in the performance of duties hereunder or by reason of reckless
disregard of obligations and duties hereunder or (ii) which does not constitute
an "unanticipated expense" within the meaning of Treasury Regulation Section
1.860G-1(b)(3)(ii). Neither the Depositor nor the Servicer shall be under any
obligation to appear in, prosecute or defend any legal action that is not
incidental to its respective duties hereunder and that in its opinion may
involve it in any expense or liability; provided, however, that either of the
Depositor or the Servicer in its discretion may undertake any such action that
it may deem necessary or desirable in respect of this Agreement and the rights
and duties of the parties hereto and the interests of the Trustee and the
Certificateholders hereunder. In such event, the legal expenses and costs of
such action and any liability resulting therefrom shall be, expenses, costs and
liabilities of the Issuing Entity, and the Depositor and the Servicer shall be
entitled to be reimbursed therefor out of the Collection Account as provided by
Section 3.08 hereof.

     Notwithstanding anything herein to the contrary, in preparing or furnishing
any reports or certifications pursuant to this Agreement, the Servicer shall be
entitled to rely conclusively on the accuracy of the information or data
provided to it by any other party to the Agreement and shall have no liability
for any errors therein.

                                     -135-

<PAGE>

     SECTION 6.04. Limitation on Resignation of Servicer

     Subject to the provisions of Section 7.01, the second paragraph of Section
7.02, the second paragraph of Section 6.02 and the following paragraph of this
Section 6.04, the Servicer shall not resign from the obligations and duties
hereby imposed on it except upon determination that its duties hereunder are no
longer permissible under applicable law. Any such determination permitting the
resignation of the Servicer shall be evidenced by an Opinion of Counsel to such
effect delivered to the Trustee and the NIMs Insurer. No such resignation shall
become effective until the Trustee or a successor servicer reasonably acceptable
to the Trustee and the NIMs Insurer is appointed and has assumed the Servicer's
responsibilities, duties, liabilities and obligations hereunder. Any such
resignation shall not relieve the Servicer of any of the obligations specified
in Section 7.01 and 7.02 as obligations that survive the resignation or
termination of the Servicer.

     Notwithstanding anything to the contrary in the previous paragraph of this
Section 6.04, the Trustee, the Depositor and the NIMs Insurer hereby
specifically (i) consent to the pledge and assignment by the Servicer of all the
Servicer's right, title and interest in, to and under this Agreement to the
Servicing Rights Pledgee, if any, for the benefit of certain lenders, and (ii)
agree that upon delivery to the Trustee by the Servicing Rights Pledgee of a
letter signed by the Servicer whereby the Servicer shall resign as Servicer
under this Agreement, notwithstanding anything to the contrary which may be set
forth in Section 3.04 above, the Trustee shall appoint the Servicing Rights
Pledgee or its designee as successor servicer, provided that the Servicer's
resignation will not be effective unless, at the time of such appointment, the
Servicing Rights Pledgee or its designee (i) meets the requirements of a
successor servicer under Section 7.03 of this Agreement (including being
acceptable to the Rating Agencies), provided, that the consent and approval of
the Trustee and the Depositor shall be deemed to have been given to the
Servicing Rights Pledgee or its designee, and the Servicing Rights Pledgee and
its designee are hereby agreed to be acceptable to the Trustee and the Depositor
and (ii) agrees to be subject to the terms of this Agreement. If, pursuant to
any provision hereof, the duties of the Servicer are transferred to a successor
servicer, the entire amount of the Servicing Fee and other compensation payable
to the Servicer pursuant hereto shall thereafter be payable to such successor
servicer.

     SECTION 6.05. Errors and Omissions Insurance; Fidelity Bonds

     The Servicer shall, for so long as it acts as servicer under this
Agreement, obtain and maintain in force (a) a policy or policies of insurance
covering errors and omissions in the performance of its obligations as servicer
hereunder, and (b) a fidelity bond in respect of its officers, employees and
agents. Each such policy or policies and bond shall, together, comply with the
requirements from time to time of Fannie Mae or Freddie Mac for Persons
performing servicing for mortgage loans purchased by Fannie Mae or Freddie Mac.
The Servicer shall provide the Trustee, upon request and reasonable notice, with
copies of such policies and fidelity bond or a certification from the insurance
provider evidencing such policies and fidelity bond. The Servicer may be deemed
to have complied with this provision if an Affiliate of the Servicer has such
errors and omissions and fidelity bond coverage and, by the terms of such
insurance policy or fidelity bond, the coverage afforded thereunder extends to
the Servicer. In the event that any such policy or bond ceases to be in effect,
the Servicer shall use its reasonable best efforts to obtain a comparable
replacement policy or bond from an insurer or issuer meeting the requirements
set forth above as of the date of such replacement. Any such policy or fidelity
bond shall by its terms not be cancelable without thirty days' prior written
notice to the Trustee.

                                     -136-

<PAGE>

                                   ARTICLE VII

                        DEFAULT; TERMINATION OF SERVICER

     SECTION 7.01. Events of Default

     "Event of Default," wherever used herein, means any one of the following
events:

          (i) any failure by the Servicer to make any Advance, to deposit in the
Collection Account or the Certificate Account or remit to the Trustee any
payment (excluding a payment required to be made under Section 4.01 hereof)
required to be made under the terms of this Agreement, which failure shall
continue unremedied for three Business Days and, with respect to a payment
required to be made under Section 4.01 hereof, for one Business Day, after the
date on which written notice of such failure shall have been given to the
Servicer by the Trustee or the Depositor, or to the Trustee, the Depositor and
the Servicer by the NIMs Insurer or the Holders of Certificates evidencing
greater than 50% of the Voting Rights evidenced by the Certificates; or

          (ii) any failure by the Servicer to observe or perform in any material
respect any other of the covenants or agreements on the part of the Servicer
contained in this Agreement or any representation or warranty shall prove to be
untrue, which failure or breach shall continue unremedied for a period of sixty
(60) days after the date on which written notice of such failure shall have been
given to the Servicer, the Trustee and the Depositor by the Trustee or the
Depositor, or to the Servicer, the Trustee and the Depositor by the Holders of
Certificates evidencing greater than 50% of the Voting Rights evidenced by the
Certificates; or

          (iii) a decree or order of a court or agency or supervisory authority
having jurisdiction for the appointment of a receiver or liquidator in any
insolvency, readjustment of debt, marshaling of assets and liabilities or
similar proceedings, or for the winding-up or liquidation of its affairs, shall
have been entered against the Servicer and such decree or order shall have
remained in force undischarged or unstayed for a period of sixty (60)
consecutive days; or

          (iv) consent by the Servicer to the appointment of a receiver or
liquidator in any insolvency, readjustment of debt, marshaling of assets and
liabilities or similar proceedings of or relating to the Servicer or all or
substantially all of the property of the Servicer; or

          (v) admission by the Servicer in writing of its inability to pay its
debts generally as they become due, file a petition to take advantage of, or
commence a voluntary case under, any applicable insolvency or reorganization
statute, make an assignment for the benefit of its creditors, or voluntarily
suspend payment of its obligations; or

          (vi) any failure by the Servicer to duly perform, within the required
time period, its obligations under Sections 3.17, 3.18 and 3.20 of this
Agreement, which failure continues unremedied for a period of ten (10) days
after the date on which written notice of such failure, requiring the same to be
remedied, shall have been given to the Servicer by the Trustee or any other
party to this Agreement.

     If an Event of Default, described in (i) - (v) above, shall occur with
respect to the Servicer, then, and in each and every such case, so long as such
Event of Default shall not have been remedied within the applicable grace
period, the Trustee may, or at the direction of the NIMs Insurer or the Holders
of

                                     -137-

<PAGE>

Certificates evidencing greater than 50% of the Voting Rights evidenced by the
Certificates (with the written consent of the NIMs Insurer, except after a NIMs
Insurer Default), shall, by notice in writing to the Servicer (with a copy to
each Rating Agency), terminate all of the rights and obligations of the Servicer
under this Agreement and in and to the related Mortgage Loans and the proceeds
thereof, other than its rights as a Certificateholder hereunder. If an Event of
Default, described in (vi) above, shall occur with respect to the Servicer,
then, and in each and every such case, so long as such Event of Default shall
not have been remedied within the applicable grace period, the Trustee, at the
direction of the Depositor or at the direction of the Holders of Certificates
evidencing greater than 50% of the Voting Rights evidenced by the Certificates,
shall, by notice in writing to the Servicer (with a copy to each Rating Agency),
terminate all of the rights and obligations of the Servicer under this Agreement
and in and to the related Mortgage Loans and the proceeds thereof, other than
its rights as a Certificateholder hereunder. On or after the receipt by the
Servicer of such written notice, all authority and power of the Servicer
hereunder, whether with respect to the related Mortgage Loans or otherwise,
shall pass to and be vested in the Trustee. To the extent the Event of Default
resulted from the failure of the Servicer to make a required Advance, the
Trustee shall thereupon make any Advance described in Section 4.01 hereof
subject to Section 3.04 hereof. The Trustee is hereby authorized and empowered
to execute and deliver, on behalf of the Servicer, as attorney-in-fact or
otherwise, any and all documents and other instruments, and to do or accomplish
all other acts or things necessary or appropriate to effect the purposes of such
notice of termination, whether to complete the transfer and endorsement or
assignment of the Mortgage Loans and related documents, or otherwise. Unless
expressly provided in such written notice, no such termination shall affect any
obligation of the Servicer to pay amounts owed pursuant to Article VIII. The
Servicer agrees to cooperate with the Trustee in effecting the termination of
the Servicer's responsibilities and rights hereunder, including, without
limitation, the transfer to the Trustee of all cash amounts which shall at the
time be credited to the Collection Account, or thereafter be received with
respect to the Mortgage Loans. The Servicer and the Trustee shall promptly
notify the Rating Agencies, the Cap Contract Counterparty and the Swap
Counterparty of the occurrence of an Event of Default, such notice to be
provided in any event within two Business Days of such occurrence.

     Notwithstanding any termination of the activities of the Servicer
hereunder, the Servicer shall be entitled to receive, out of any late collection
of a Scheduled Payment on a Mortgage Loan that was due prior to the notice
terminating the Servicer's rights and obligations as Servicer hereunder and
received after such notice, that portion thereof to which the Servicer would
have been entitled pursuant to Section 3.08(a), and any other amounts payable to
the Servicer hereunder the entitlement to which arose prior to the termination
of its activities hereunder. Notwithstanding anything herein to the contrary,
upon termination of the Servicer hereunder, any liabilities of the Servicer
which accrued prior to such termination shall survive such termination.

     SECTION 7.02. Trustee to Act; Appointment of Successor

     On and after the time the Servicer receives a notice of termination
pursuant to Section 7.01 hereof, the Trustee shall, to the extent provided in
Section 3.04, be the successor to the Servicer in its capacity as servicer under
this Agreement and the transactions set forth or provided for herein and shall
be subject to all the responsibilities, duties and liabilities relating thereto
placed on the Servicer by the terms and provisions hereof and applicable law
including the obligation to make advances pursuant to Section 4.01. As
compensation therefor, subject to the last paragraph of Section 7.01, the
Trustee shall be entitled to all fees, compensation and reimbursement for costs
and expenses that the Servicer would have been entitled to hereunder if the
Servicer had continued to act hereunder. Notwithstanding the foregoing, if the
Trustee has become the successor to the Servicer in accordance with Section 7.01
hereof, the

                                     -138-

<PAGE>

Trustee may, if it shall be unwilling to so act, or shall, if it is prohibited
by applicable law from making Advances pursuant to Section 4.01 hereof or if it
is otherwise unable to so act, appoint, or petition a court of competent
jurisdiction to appoint, any established mortgage loan servicing institution and
does not adversely affect the then current rating of the Certificates by each
Rating Agency as the successor to the Servicer hereunder in the assumption of
all or any part of the responsibilities, duties or liabilities of the Servicer
hereunder. Any successor Servicer shall be an institution that is acceptable to
the NIMs Insurer and is a Fannie Mae and Freddie Mac approved seller/servicer in
good standing, that has a net worth of at least $15,000,000, and that is willing
to service the Mortgage Loans and executes and delivers to the Depositor and the
Trustee an agreement accepting such delegation and assignment, that contains an
assumption by such Person of the rights, powers, duties, responsibilities,
obligations and liabilities of the Servicer (other than liabilities of the
Servicer under Section 6.03 hereof incurred prior to termination of the Servicer
under Section 7.01), with like effect as if originally named as a party to this
Agreement; and provided further that each Rating Agency acknowledges that its
rating of the Certificates in effect immediately prior to such assignment and
delegation will not be qualified or reduced as a result of such assignment and
delegation. No appointment of a successor to the Servicer hereunder shall be
effective until the Trustee shall have consented thereto, prior written consent
of the NIMs Insurer is obtained (provided, that such prior written consent shall
not be required in the event that the Servicing Rights Pledgee or its designee
is so appointed as successor servicer) and written notice of such proposed
appointment shall have been provided by the Trustee to each Certificateholder.
The Trustee shall not resign as servicer until a successor servicer has been
appointed and has accepted such appointment. Pending appointment of a successor
to the Servicer hereunder, the Trustee, unless the Trustee is prohibited by law
from so acting, shall, subject to Section 3.04 hereof, act in such capacity as
hereinabove provided. In connection with such appointment and assumption, the
Trustee may make such arrangements for the compensation of such successor out of
payments on Mortgage Loans as it and such successor shall agree; provided,
however, that no such compensation shall be in excess of that permitted the
Servicer hereunder. The Trustee and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such
succession. Neither the Trustee nor any other successor servicer shall be deemed
to be in default hereunder by reason of any failure to make, or any delay in
making, any distribution hereunder or any portion thereof or any failure to
perform, or any delay in performing, any duties or responsibilities hereunder,
in either case caused by the failure of the Servicer to deliver or provide, or
any delay in delivering or providing, any cash, information, documents or
records to it.

     Any successor to the Servicer as servicer shall give notice to the
Mortgagors of such change of servicer and shall, during the term of its service
as servicer maintain in force the policy or policies that the Servicer is
required to maintain pursuant to Section 6.05.

     SECTION 7.03. Notification to Certificateholders

          (a) Upon any termination of or appointment of a successor to the
Servicer, the Trustee shall give prompt written notice thereof to
Certificateholders, the Depositor, to each Rating Agency, the Cap Counterparty
and the Swap Counterparty.

          (b) Within sixty (60) days after the occurrence of any Event of
Default, the Trustee shall transmit by mail to all Certificateholders and the
Rating Agencies notice of each such Event of Default hereunder known to the
Trustee, unless such Event of Default shall have been cured or waived.

                                     -139-

<PAGE>

                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

     SECTION 8.01. Duties of the Trustee

     For purposes of this Article VIII, references to "Trustee" shall be deemed
to include LaSalle Bank National Association, in its capacity as Supplemental
Interest Trust Trustee under this Agreement and the Swap Agreement, and in
respect thereof, the Supplemental Interest Trust Trustee shall have all of the
rights, protections, immunities and benefits of the Trustee.

     The Trustee, prior to the occurrence of an Event of Default and after the
curing of all Events of Default that may have occurred, shall undertake to
perform such duties and only such duties as are specifically set forth in this
Agreement. In case an Event of Default has occurred and remains uncured, the
Trustee shall exercise such of the rights and powers vested in it by this
Agreement and use the same degree of care and skill in its exercise as a prudent
person would exercise or use under the circumstances in the conduct of such
person's own affairs. In case an Event of Default or other default by the
Servicer or the Depositor hereunder shall occur and be continuing, the Trustee
shall, at the written direction of the majority of the Certificateholders or the
NIMs Insurer, or may, proceed to protect and enforce its rights and the rights
of the Certificateholders or the NIMs Insurer under this Agreement by a suit,
action or proceeding in equity or at law or otherwise, whether for the specific
performance of any covenant or agreement contained in this agreement or in aid
of the execution of any power granted in this Agreement or for the enforcement
of any other legal, equitable or other remedy, as the Trustee, being advised by
counsel and subject to the foregoing, shall deem most effectual to protect and
enforce any of the rights of the Trustee, the NIMs Insurer and the
Certificateholders.

     The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee that are specifically required to be furnished pursuant to any provision
of this Agreement, shall examine them to determine whether they conform on their
face to the requirements of this Agreement. If any such instrument is found not
to conform on its face to the requirements of this Agreement in a material
manner, the Trustee shall notify the person providing such Agreement of such
non-conformance, and if the instrument is not corrected to the its satisfaction,
the Trustee will provide notice thereof to the Certificateholders and the NIMs
Insurer and take such further action as directed by the Certificateholders and
the NIMs Insurer.

     No provision of this Agreement shall be construed to relieve the Trustee
from liability for its own negligent action, its own negligent failure to act or
its own misconduct, its negligent failure to perform its obligations in
compliance with this Agreement, or any liability that would be imposed by reason
of its willful misfeasance or bad faith; provided, however, that:

          (i) prior to the occurrence of an Event of Default, and after the
curing of all such Events of Default that may have occurred, the duties and
obligations of the Trustee shall be determined solely by the express provisions
of this Agreement, the Trustee shall not be liable, individually or as Trustee,
except for the performance of such duties and obligations as are specifically
set forth in this Agreement, no implied covenants or obligations shall be read
into this Agreement against the Trustee and, the Trustee may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon any certificates or opinions furnished to the Trustee and
conforming to the

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<PAGE>

requirements of this Agreement that it reasonably believed in good faith to be
genuine and to have been duly executed by the proper authorities respecting any
matters arising hereunder;

          (ii) the Trustee shall not, individually or as Trustee, be liable for
an error of judgment made in good faith by a Responsible Officer or Responsible
Officers of the Trustee unless the Trustee was negligent or acted in bad faith
or with willful misfeasance;

          (iii) the Trustee shall not be liable, individually or as Trustee,
with respect to any action taken, suffered or omitted to be taken by it in good
faith in accordance with the direction of the NIMs Insurer or the Holders in
accordance with this Agreement relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee under this Agreement; and

          (iv) the Trustee shall not be responsible for the acts or omissions of
any Servicer or any Subservicer, it being understood that this Agreement shall
not be construed to render any of them agents of one another.

     SECTION 8.02. Certain Matters Affecting the Trustee

          (a) Except as otherwise provided in Section 8.01:

          (i) the Trustee may request and conclusively rely upon and shall be
fully protected in acting or refraining from acting upon any resolution,
Officer's Certificate, certificate of auditors or any other certificate,
statement, instrument, opinion, report, notice, request, consent, order,
appraisal, bond or other paper or document believed by it to be genuine and to
have been signed or presented by the proper party or parties;

          (ii) the Trustee may consult with counsel of its choice and any advice
or Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken or suffered or omitted by it hereunder in good faith
and in accordance with such Opinion of Counsel;

          (iii) the Trustee shall not be liable for any action taken, suffered
or omitted by it in good faith and believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Agreement;

          (iv) prior to the occurrence of an Event of Default hereunder and
after the curing of all Events of Default that may have occurred, the Trustee
shall not be bound to make any investigation into the facts or matters stated in
any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond or other paper or document, unless
requested in writing so to do by the NIMs Insurer or the Holders of each Class
of Certificates evidencing not less than 25% of the Voting Rights of such Class;

          (v) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents,
custodians, accountants or attorneys or independent contractors and the Trustee
will not be responsible for any misconduct or negligence on the part of any
other agent, custodian, accountant, attorney or independent contractor appointed
with due care by it hereunder;

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<PAGE>

          (vi) the Trustee shall not be required to expend its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder if it shall have reasonable grounds for believing that repayment of
such funds or adequate indemnity against such liability is not assured to it;

          (vii) the Trustee shall not be liable, individually or as Trustee, for
any loss on any investment of funds pursuant to this Agreement or the Swap
Agreement (other than as issuer of the investment security);

          (viii) the Trustee shall not be deemed to have knowledge of an Event
of Default until a Responsible Officer of the Trustee shall have received
written notice thereof;

          (ix) the Trustee shall be under no obligation to exercise any of the
trusts or powers vested in it by this Agreement or to make any investigation of
matters arising hereunder or to institute, conduct or defend any litigation
hereunder or in relation hereto at the request, order or direction of any of the
NIMs Insurer or the Certificateholders, pursuant to the provisions of this
Agreement, unless the NIMs Insurer or the Certificateholders shall have offered
to the Trustee reasonable security or indemnity satisfactory to it against the
costs, expenses and liabilities that may be incurred therein or thereby;

          (x) if requested by the Servicer, the Trustee shall appoint the
Servicer as the Trustee's attorney-in-fact in order to carry out and perform
certain activities that are necessary or appropriate for the servicing and
administration of the Mortgage Loans pursuant to this Agreement. Such
appointment shall be evidenced by a power of attorney in such form as may be
agreed to by the Trustee and the Servicer. The Trustee shall have no liability
for any action or inaction of the Servicer in connection with such power of
attorney and the Trustee shall be indemnified by the Servicer for all
liabilities, costs and expenses incurred by the Trustee in connection with the
Servicer's use or misuse of such powers of attorney; and

          (xi) in order to comply with its duties under the U.S.A. Patriot Act,
the Trustee shall obtain and verify certain information and documentation from
the other parties hereto, including but not limited to, such party's name,
address and other identifying information.

          (b) All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by the Trustee without
the possession of any of the Certificates, or the production thereof at the
trial or other proceeding relating thereto, and any such suit, action or
proceeding instituted by the Trustee shall be brought in its name for the
benefit of all the Holders of the Certificates, subject to the provisions of
this Agreement. The Trustee shall have no duty (A) to see to any recording,
filing, or depositing of this Agreement or any agreement referred to herein or
any financing statement or continuation statement evidencing a security
interest, or to see to the maintenance of any rerecording, refiling or
redepositing, as applicable, thereof, (B) to see to any insurance or (C) to see
to the payment or discharge of any tax, assessment, or other governmental charge
or any lien or encumbrance of any kind owing with respect to, assessed or levied
against, any part of the Trust Fund.

     SECTION 8.03. Trustee Not Liable for Certificates or Mortgage Loans

     The recitals contained herein shall be taken as the statements of the
Depositor or the Servicer, as the case may be, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representation as to
the validity or sufficiency of this Agreement, of any Mortgage Loan, or any
related

                                     -142-

<PAGE>

document other than with respect to the execution and authentication of the
Certificates, if it so executed or authorized the Certificates. The Trustee
shall not be accountable for the use or application by the Depositor or the
Servicer of any funds paid to the Depositor or the Servicer in respect of the
Mortgage Loans or deposited in or withdrawn from the Collection Account or the
Certificate Account by the Depositor or the Servicer.

     SECTION 8.04. Trustee May Own Certificates

     The Trustee in its individual or any other capacity may become the owner or
pledgee of Certificates with the same rights as it would have if it was not the
Trustee.

     SECTION 8.05. Trustee's Fees and Expenses

     The Trustee and any custodian shall be entitled to, such compensation as
shall be agreed to in writing by the Trustee and the Depositor (which shall not
be limited by any provision of law in regard to the compensation of a trustee of
an express trust) for all services rendered by it in the execution of the trusts
hereby created and in the exercise and performance of any of the powers and
duties hereunder of the Trustee.

     SECTION 8.06. Indemnification and Expenses of Trustee

          (a) LaSalle Bank National Association (as Trustee and in its
individual corporate capacity) and its directors, officers, employees and agents
shall be entitled to indemnification from the Issuing Entity for any loss,
liability or expense incurred in connection with (i) any audit, controversy or
judicial proceeding relating to a governmental authority or any legal proceeding
incurred without negligence or willful misconduct on their part, arising out of,
or in connection with the acceptance or administration of the trusts created
hereunder and (ii) the performance of their duties hereunder, including any
applicable fees and expenses payable hereunder, and the costs and expenses of
defending themselves against any claim in connection with the exercise or
performance of any of their powers or duties hereunder, provided that:

          (i) with respect to any such claim, the Trustee shall have given the
Depositor written notice thereof promptly after the Trustee shall have knowledge
thereof; provided that failure to so notify shall not relieve the Issuing Entity
of the obligation to indemnify the Trustee; however, any reasonable delay by the
Trustee to provide written notice to the Depositor and the Holders promptly
after the Trustee shall have obtained knowledge of a claim shall not relieve the
Issuing Entity of the obligation to indemnify the Trustee under this Section
8.06;

          (ii) while maintaining control over its own defense, the Trustee shall
reasonably cooperate and consult with the Depositor in preparing such defense;

          (iii) notwithstanding anything to the contrary in this Section 8.06,
the Issuing Entity shall not be liable for settlement of any such claim by the
Trustee entered into without the prior consent of the Depositor, which consent
shall not be unreasonably withheld or delayed; and

          (iv) indemnification therefor would constitute "unanticipated
expenses" within the meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii).

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<PAGE>

     Any indemnification payments to the Trustee (or a custodian) pursuant to
this Section 8.06(a) shall be allocated first to principal and then, to the
extent remaining, to interest.

     The provisions of this Section 8.06 shall survive any termination of this
Agreement and the resignation or removal of the Trustee and shall be construed
to include, but not be limited to any loss, liability or expense under any
environmental law.

          (b) The Trustee shall be entitled to reimbursement by the Trust Fund
of all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with this Agreement (including fees and expenses of its
counsel and all persons not regularly in its employment), except any such
expenses, disbursements and advances that either (i) arise from its negligence,
bad faith or willful misconduct or (ii) do not constitute "unanticipated
expenses" within the meaning of Treasury Regulations Section 1.860G-1(b)(3)(ii).

          (c) The Trustee's right to indemnification and reimbursement shall be
subject to a cap of $400,000 in the aggregate in any calendar year, excluding
(i) any Servicing Transfer Costs and (ii) any costs, damages or expenses
incurred by the Trustee in connection with any "high cost" home loans or any
predatory or abusive lending laws, which amounts shall in no case be subject to
any such limitation; provided, however, that such cap shall apply only if NIM
Notes have been issued and there is a NIMs Insurer and shall cease to apply
after the date on which any NIM Notes are paid in full or if there is no NIMs
Insurer; provided further, however, that amounts incurred by the Trustee in
excess of such annual limit in any calendar year shall be payable to the Trustee
in succeeding calendar years, subject to such annual limit for each applicable
calendar year. Any amounts reimbursable hereunder not in excess of this cap may
be withdrawn by the Trustee from the Certificate Account at any time.

          (d) Any custodian appointed by the Trustee as herein provided shall be
entitled to indemnification and reimbursement of expenses to the same extent as
the Trustee is entitled to such amounts pursuant to subsection (a) and (b) of
this Section 8.06, without regard to subsection (c) of this Section 8.06.

     SECTION 8.07. Eligibility Requirements for Trustee

     The Trustee hereunder shall, at all times, be a corporation or association
organized and doing business under the laws of a state or the United States of
America, authorized under such laws to exercise corporate trust powers having a
combined capital and surplus of at least $50,000,000, subject to supervision or
examination by federal or state authority and with a credit rating that would
not cause any of the Rating Agencies to reduce their respective ratings of any
Class of Certificates below the ratings issued on the Closing Date (or having
provided such security from time to time as is sufficient to avoid such
reduction). If such corporation or association publishes reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section 8.07
the combined capital and surplus of such corporation or association shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Trustee shall cease to
be eligible in accordance with the provisions of this Section 8.07, the Trustee
shall resign immediately in the manner and with the effect specified in Section
8.08 hereof. The corporation or national banking association serving as Trustee
may have normal banking and trust relationships with the Depositor, the NIMs
Insurer and their respective Affiliates; provided, however, that such
corporation cannot be an Affiliate of the Servicer.

                                     -144-
<PAGE>

     SECTION 8.08. Resignation and Removal of Trustee

     The Trustee may at any time resign and be discharged from the trusts hereby
created by (1) giving written notice of resignation to the Depositor by mailing
notice of resignation by first class mail, postage prepaid, to the
Certificateholders at their addresses appearing on the Certificate Register and
each Rating Agency, not less than sixty (60) days before the date specified in
such notice when, subject to Section 8.09, such resignation is to take effect,
and (2) acceptance of appointment by a successor trustee acceptable to the NIMs
Insurer in accordance with Section 8.09 and meeting the qualifications set forth
in Section 8.07. If no successor trustee shall have been so appointed and have
accepted appointment within thirty (30) days after the giving of such notice or
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee.

     If at any time (i) the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.07 hereof and shall fail to resign after
written request thereto by the Depositor or the NIMs Insurer or (ii) the Trustee
shall become incapable of acting, or shall be adjudged as bankrupt or insolvent,
or a receiver of the Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, then the
Depositor may remove the Trustee and shall promptly appoint a successor trustee
by written instrument, in triplicate, one copy of which instrument shall be
delivered to the Trustee and one copy of which shall be delivered to the
successor trustee.

     The Holders evidencing at least 51% of the Voting Rights of all Classes of
Certificates, with the consent of the NIMs Insurer, may at any time remove the
Trustee and the Depositor shall appoint a successor trustee by written
instrument or instruments, in triplicate, signed by such Holders or their
attorneys-in-fact duly authorized (or by the NIMs Insurer), one complete set of
which instruments shall be delivered by the successor trustee to the Servicer,
one complete set to the Trustee so removed and one complete set to the successor
so appointed. Notice of any removal of the Trustee shall be given to the NIMs
Insurer and to each Rating Agency by the successor trustee.

     Any resignation or removal of the Trustee and appointment of a successor
trustee pursuant to any of the provisions of this Section 8.08 shall become
effective upon acceptance of appointment by the successor trustee as provided in
Section 8.09 hereof.

     SECTION 8.09. Successor Trustee

     Any successor trustee appointed as provided in Section 8.08 hereof shall
execute, acknowledge and deliver to the Depositor and to its predecessor
trustee, the NIMs Insurer, the Servicer, the Cap Contract Counterparty and the
Swap Counterparty an instrument accepting such appointment hereunder and
thereupon the resignation or removal of the predecessor trustee shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with the like effect as if originally
named as trustee herein.

     No successor trustee shall accept appointment as provided in this Section
8.09 unless at the time of such acceptance such successor trustee shall be
eligible under the provisions of Section 8.07 hereof and its appointment shall
not adversely affect the then current rating of the Certificates.

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<PAGE>

     Upon acceptance of appointment by a successor trustee as provided in this
Section 8.09, the Depositor shall mail notice of the succession of such trustee
hereunder to all Holders of Certificates. If the Depositor fails to mail such
notice within ten (10) days after acceptance of appointment by the successor
trustee, the successor trustee shall cause such notice to be mailed at the
expense of the Depositor.

     SECTION 8.10. Merger or Consolidation of Trustee

     Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided that such corporation shall be eligible under the provisions of Section
8.07 hereof without the execution or filing of any paper or further act on the
part of any of the parties hereto, anything herein to the contrary
notwithstanding (except for the execution of an assumption agreement where such
succession is not effected by operation of law).

     SECTION 8.11. Appointment of Co-Trustee or Separate Trustee

     Notwithstanding any other provisions of this Agreement, at any time, for
the purpose of meeting any legal requirements of any jurisdiction in which any
part of the Trust Fund or property securing any Mortgage Note may at the time be
located, the Servicer and the Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Trustee and the NIMs Insurer to act as co-trustee or co-trustees
jointly with the Trustee, or separate trustee or separate trustees, of all or
any part of the Trust Fund, and to vest in such Person or Persons, in such
capacity and for the benefit of the Certificateholders, such title to the Trust
Fund or any part thereof, whichever is applicable, and, subject to the other
provisions of this Section 8.11, such powers, duties, obligations, rights and
trusts as the Servicer and the Trustee may consider necessary or desirable. Any
such co-trustee or separate trustee shall be compensated by the Trust Fund and
subject to the written approval of the Servicer and the NIMs Insurer. The
Trustee shall not be liable for the actions of any co-trustee appointed with due
care; provided that the appointment of a co-trustee shall not relieve the
Trustee of its obligations hereunder. If the Servicer and the NIMs Insurer shall
not have joined in such appointment within fifteen (15) days after the receipt
by it of a request to do so, or in the case an Event of Default shall have
occurred and be continuing, the Trustee alone shall have the power to make such
appointment. No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor trustee under Section 8.07 and no
notice to Certificateholders of the appointment of any co-trustee or separate
trustee shall be required under Section 8.09.

     Every separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions:

          (i) All rights, powers, duties and obligations conferred or imposed
upon the Trustee shall be conferred or imposed upon and exercised or performed
by the Trustee and such separate trustee or co-trustee jointly (it being
understood that such separate trustee or co-trustee is not authorized to act
separately without the Trustee joining in such act), except to the extent that
under any law of any jurisdiction in which any particular act or acts are to be
performed (whether as Trustee hereunder or as successor to the Servicer
hereunder), the Trustee shall be incompetent or unqualified to perform such act
or acts, in which event such rights, powers, duties and obligations (including
the holding of title to the

                                     -146-

<PAGE>

Trust Fund or any portion thereof in any such jurisdiction) shall be exercised
and performed singly by such separate trustee or co-trustee, but solely at the
direction of the Trustee;

          (ii) No trustee hereunder shall be held personally liable by reason of
any act or omission of any other trustee hereunder; and

          (iii) The Trustee, with the consent of the NIMs Insurer, may at any
time accept the resignation of or remove any separate trustee or co-trustee.

     Any notice, request or other writing given to the Trustee shall be deemed
to have been given to each of the then separate trustees and co-trustees, as
effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article VIII. Each separate trustee and co-trustee, upon its acceptance
of the trusts conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee and a copy thereof given to the
NIMs Insurer and the Depositor.

     Any separate trustee or co-trustee may, at any time, constitute the Trustee
its agent or attorney-in-fact, with full power and authority, to the extent not
prohibited by law, to do any lawful act under or in respect of this Agreement on
its behalf and in its name. If any separate trustee or co-trustee shall die,
become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee.

     SECTION 8.12. Tax Matters

          (a) It is intended that each of the REMICs provided for herein shall
constitute, and that the affairs of the Trust Fund shall be conducted so as to
allow each such REMIC to qualify as, a "real estate mortgage investment conduit"
as defined in and in accordance with the REMIC Provisions. It is also intended
that each of the grantor trusts provided for in Section 2.07 hereof shall
constitute, and that the affairs of the Trust Fund shall be conducted so as to
allow each such grantor trust to qualify as, a grantor trust under the
provisions of Subpart E, Part I of Subchapter J of the Code. In furtherance of
such intention, the Trustee covenants and agrees that it shall act as agent (and
the Trustee is hereby appointed to act as agent) on behalf of each of the REMICs
provided for herein and that in such capacity it shall: (a) prepare and file, or
cause to be prepared and filed, in a timely manner, a U.S. Real Estate Mortgage
Investment Conduit Income Tax Return (Form 1066 or any successor form adopted by
the Internal Revenue Service) and prepare and file or cause to be prepared and
filed with the Internal Revenue Service and applicable state or local tax
authorities income tax or information returns for each taxable year with respect
to each of the REMICs and grantor trusts provided for herein, containing such
information and at the times and in the manner as may be required by the Code or
state or local tax laws, regulations, or rules, and furnish or cause to be
furnished to Certificateholders the schedules, statements or information at such
times and in such manner as may be required thereby; (b) within thirty (30) days
of the Closing Date, furnish or cause to be furnished to the Internal Revenue
Service, on Forms 8811 or as otherwise may be required by the Code, the name,
title, address, and telephone number of the person that the holders of the
Certificates may contact for tax information relating thereto, together with
such additional information as may be required by such Form, and update such
information at the time or times in the

                                     -147-

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manner required by the Code for each of the REMICs provided for herein; (c) make
or cause to be made elections, on behalf of each of the REMICs provided for
herein to be treated as a REMIC on the federal tax return of such REMICs for
their first taxable years (and, if necessary, under applicable state law); (d)
prepare and forward, or cause to be prepared and forwarded, to the
Certificateholders and to the Internal Revenue Service and, if necessary, state
tax authorities, all information returns and reports as and when required to be
provided to them in accordance with the REMIC Provisions or other applicable
law, including without limitation, the calculation of any original issue
discount using the Prepayment Assumption; (e) provide information necessary for
the computation of tax imposed on the transfer of a Class R Certificate to a
Person that is not a Permitted Transferee, or an agent (including a broker,
nominee or other middleman) of a Person that is not a Permitted Transferee, or a
pass through entity in which a Person that is not a Permitted Transferee is the
record holder of an interest (the reasonable cost of computing and furnishing
such information may be charged to the Person liable for such tax); (f) to the
extent that they are under its control conduct the affairs of each of the REMICs
and grantor trusts provided for herein at all times that any Certificates are
outstanding so as to maintain the status of each of the REMICs provided for
herein as a REMIC under the REMIC Provisions and the status of each of the
grantor trusts provided for herein as a grantor trust under Subpart E, Part I of
Subchapter J of the Code; (g) not knowingly or intentionally take any action or
omit to take any action that would cause the termination of the REMIC status of
any of the REMICs provided for herein or result in the imposition of tax upon
any such REMIC; (h) not knowingly or intentionally take any action or omit to
take any action that would cause the termination of the grantor trust status
under Subpart E, Part I of Subchapter J of the Code of any of the grantor trusts
provided for herein or result in the imposition of tax upon any such grantor
trust; (i) pay, from the sources specified in the last paragraph of this Section
8.12(a), the amount of any federal, state and local taxes, including prohibited
transaction taxes as described below, imposed on each of the REMICs provided for
herein prior to the termination of the Trust Fund when and as the same shall be
due and payable (but such obligation shall not prevent the Trustee or any other
appropriate Person from contesting any such tax in appropriate proceedings and
shall not prevent the Trustee from withholding payment of such tax, if permitted
by law, pending the outcome of such proceedings); (j) sign or cause to be signed
federal, state or local income tax or information returns; (k) maintain records
relating to each of the REMICs provided for herein, including but not limited to
the income, expenses, assets and liabilities of each of the REMICs and grantor
trusts provided for herein; and (l) as and when necessary and appropriate,
represent each of the REMICs provided for herein in any administrative or
judicial proceedings relating to an examination or audit by any governmental
taxing authority, request an administrative adjustment as to any taxable year of
any of the REMICs provided for herein, enter into settlement agreements with any
governmental taxing agency, extend any statute of limitations relating to any
tax item of any of the REMICs provided for herein, and otherwise act on behalf
of each of the REMICs provided for herein in relation to any tax matter
involving any of such REMICs or any controversy involving the Trust Fund.

     In order to enable the Trustee to perform its duties as set forth herein,
the Depositor shall provide, or cause to be provided, to the Trustee within ten
(10) days after the Closing Date all information or data that the Trustee
requests in writing and determines to be relevant for tax purposes to the
valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flows of
the Certificates and the Mortgage Loans. Thereafter, the Depositor shall provide
to the Trustee promptly upon written request therefor, any such additional
information or data that the Trustee may, from time to time, request in order to
enable the Trustee to perform its duties as set forth herein. The Depositor
hereby agrees to indemnify the Trustee for any losses, liabilities, damages,
claims or expenses of the Trustee arising from any errors or miscalculations of
the Trustee that result

                                     -148-

<PAGE>

from any failure of the Depositor to provide, or to cause to be provided,
accurate information or data to the Trustee on a timely basis.

     In the event that any tax is imposed on "prohibited transactions" of any of
the REMICs provided for herein as defined in Section 860F(a)(2) of the Code, on
the "net income from foreclosure property" of any of such REMICs as defined in
Section 860G(c) of the Code, on any contribution to the Trust Fund after the
Startup Day pursuant to Section 860G(d) of the Code, or any other tax is
imposed, if not paid as otherwise provided for herein, such tax shall be paid by
(i) the Trustee, if any such other tax arises out of or results from a breach by
the Trustee of any of its obligations under this Agreement or as a result of the
location of the Trustee, (ii) any party hereto (other than the Trustee) to the
extent any such other tax arises out of or results from a breach by such other
party of any of its obligations under this Agreement or as a result of the
location of such other party or (iii) in all other cases, or in the event that
any liable party here fails to honor its obligations under the preceding clauses
(i) or (ii), any such tax will be paid first with amounts (other than amounts
derived by the Issuing Entity from a payment on any Corridor Contract or amounts
received by the Supplemental Interest Trust as payments on the Swap Agreement)
otherwise to be distributed to the Class R Certificateholders (pro rata)
pursuant to Section 4.04, and second with amounts (other than amounts derived by
the Issuing Entity from a payment on any Corridor Contract or amounts received
by the Supplemental Interest Trust as payments on the Swap Agreement) otherwise
to be distributed to all other Certificateholders in the following order of
priority: first, to the Class C Certificates (pro rata), second to the Class B-3
Certificates (pro rata), third to the Class B-2 Certificates (pro rata), fourth
to the Class B-1 Certificates (pro rata), fifth to the Class M-6 Certificates
(pro rata), sixth to the Class M-5 Certificates (pro rata), seventh to the Class
M-4 Certificates (pro rata), eighth to the Class M-3 Certificates (pro rata),
ninth to the Class M-2 Certificates (pro rata), tenth to the Class M-1
Certificates (pro rata) and eleventh to the Class A Certificates (pro rata).
Notwithstanding anything to the contrary contained herein, to the extent that
such tax is payable by the Class R Certificate, the Trustee is hereby authorized
pursuant to such instruction to retain on any Distribution Date, from the
Holders of the Class R Certificate (and, if necessary, from the Holders of all
other Certificates in the priority specified in the preceding sentence), funds
otherwise distributable to such Holders in an amount sufficient to pay such tax.
The Trustee agrees to promptly notify in writing the party liable for any such
tax of the amount thereof and the due date for the payment thereof.

          (b) Each of the Depositor, the Servicer and the Trustee agrees not to
knowingly or intentionally take any action or omit to take any action that would
cause the termination of the REMIC status of any of the REMICs provided for
herein or result in the imposition of a tax upon any of the REMICs provided for
herein.

                                   ARTICLE IX

                                   TERMINATION

     SECTION 9.01. Termination upon Liquidation or Repurchase of all Mortgage
Loans

          (a) Subject to Section 9.03, the obligations and responsibilities of
the Depositor, the Servicer and the Trustee created hereby with respect to the
Trust Fund shall terminate upon the earlier of (a) an Optional Termination and
(b) the later of (i) the maturity or other liquidation (or any Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust Fund and the
disposition of all REO Property and (ii) the distribution to Certificateholders
of all amounts required to be distributed to them pursuant to this Agreement, as
applicable. In no event shall the trusts created hereby continue beyond the

                                     -149-

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earlier of (i) the expiration of 21 years from the death of the last survivor of
the descendants of Joseph P. Kennedy, the late Ambassador of the United States
to the Court of St. James's, living on the date hereof and (ii) the Latest
Possible Maturity Date.

          (b) On or before the Determination Date following the Initial Optional
Termination Date, the Trustee shall attempt to terminate the Trust Fund by
conducting an auction of all of the Mortgage Loans and REO Properties via a
solicitation of bids from each Holder of a Class C Certificate and at least
three (3) additional bidders, each of which shall be a nationally recognized
participant in mortgage finance (the "Auction"). The Depositor and the Trustee
agree to work in good faith to develop bid procedures in advance of the Initial
Optional Termination Date to govern the operation of the Auction. The Trustee
shall be entitled to retain an investment banking firm and/or other agents in
connection with the Auction, the cost of which shall be included in the Optional
Termination Price (unless an Optional Termination does not occur in which case
such costs shall be an expense of the Trust Fund). The Trustee shall accept the
highest bid received at the Auction; provided that the amount of such bid equals
or exceeds the Optional Termination Price. The Trustee shall determine the
Optional Termination Price based upon information provided by (a) the Servicer
with respect to the amounts described in clauses (i) and (ii) of the definition
of "Optional Termination Price" and (b) the Depositor with respect to the
information described in clauses (iii) and (iv) of the definition of "Optional
Termination Price." The Trustee may conclusively rely upon the information
provided to it in accordance with the immediately preceding sentence and shall
not have any liability for the failure of any party to provide such information.
Notwithstanding anything herein to the contrary, only an amount equal to the
Optional Termination Price, reduced by the portion thereof consisting of the sum
of (x) any Swap Termination Payment and (y) the amount of any unpaid Net Swap
Payments that would not otherwise be funded by the Optional Termination Price
but for clause (iv) of the definition of "Optional Termination Price" (such
portion, the "Swap Optional Termination Payment"), shall be made available for
distribution to the Certificates. The Swap Optional Termination Payment shall be
withdrawn by the Trustee from the Certificate Account and remitted to the
Supplemental Interest Trust for payment to the Swap Counterparty. The Swap
Optional Termination Payment shall not be part of any REMIC and shall not be
paid into any account which is part of any REMIC.

     If no sale under Section 9.01(b) occurs the NIMs Insurer may, at its
option, terminate the Trust Fund on any Distribution Date by purchasing all of
the Mortgage Loans and REO Properties at the price equal to the Optional
Termination Price. If an Optional Termination does not occur as a result of the
Auction's failure to achieve the Optional Termination Price, and the NIMs
Insurer fails to exercise its option to purchase all of the Mortgage Loans, the
Servicer (or an affiliate of the Servicer) may, on any Distribution Date
following such Auction, at its option, terminate the Trust Fund by purchasing
all of the Mortgage Loans and REO Properties at a price equal to the Optional
Termination Price. In connection with such termination, the Optional Termination
Price shall be delivered to the Trustee no later than two Business Days
immediately preceding the related Distribution Date. Notwithstanding anything to
the contrary herein, the Optional Termination Amount paid to the Trustee by the
winning bidder at the Auction or by the Servicer (or an affiliate of the
Servicer or the NIMs Insurer) shall be deposited by the Trustee directly into
the Certificate Account immediately upon receipt. Upon any termination as a
result of an Auction, the Trustee shall, out of the Optional Termination Amount
deposited into the Certificate Account, (x) reimburse the Trustee for its costs
and expenses necessary to conduct the Auction and any other unreimbursed amounts
owing to it and (y) pay to the Servicer, the aggregate amount of any
unreimbursed out-of-pocket costs and expenses owed to the Servicer and any
unpaid or unreimbursed Servicing Fees, Advances and Servicing Advances.

                                      -150-
<PAGE>

          (c) Notwithstanding anything to the contrary in clause (b) above, in
the event that the Trustee receives the written opinion of a nationally
recognized participant in mortgage finance acceptable to the Sponsor that the
Mortgage Loans and REO Properties to be included in the Auction will not be
saleable at a price sufficient to achieve the Optional Termination Price, the
Trustee need not conduct the Auction. In such event, the Servicer shall have the
option to purchase the Mortgage Loans and REO Properties at the Optional
Termination Price as of the Initial Optional Termination Date.

     SECTION 9.02. Final Distribution on the Certificates

     If on any Determination Date, (i) the Trustee determines that there are no
Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other
than the funds in the Collection Account, the Trustee shall send a final
distribution notice promptly to each Certificateholder or (ii) the Trustee
determines that a Class of Certificates shall be retired after a final
distribution on such Class, the Trustee shall notify the Certificateholders as
soon as practicable after such Determination Date that the final distribution in
retirement of such Class of Certificates is scheduled to be made on the
immediately following Distribution Date. Any final distribution made pursuant to
the immediately preceding sentence will be made only upon presentation and
surrender of the Certificates at the office of the Trustee specified in such
notice.

     Notice of any termination of the Trust Fund, specifying the Distribution
Date on which Certificateholders may surrender their Certificates for payment of
the final distribution and cancellation, shall be given promptly by the Trustee
by letter to Certificateholders mailed as soon as practicable after a
determination is made pursuant to the preceding paragraph (or with respect to an
Auction, mailed no later than one Business Day following completion of such
Auction). Any such notice shall specify (a) the Distribution Date upon which
final distribution on the Certificates will be made upon presentation and
surrender of Certificates at the office therein designated, (b) the location of
the office or agency at which such presentation and surrender must be made, and
(c) that the Record Date otherwise applicable to such Distribution Date is not
applicable, distributions being made only upon presentation and surrender of the
Certificates at the office therein specified. The Trustee will give such notice
to the Swap Counterparty and to each Rating Agency at the time such notice is
given to Certificateholders.

     In the event such notice is given, the Servicer shall remit all funds in
the Collection Account to the Trustee for deposit in the Certificate Account on
the Servicer Remittance Date in an amount equal to the final distribution in
respect of the Certificates. Upon such final deposit and the receipt by the
Trustee of a Request for Release therefor, the Trustee shall promptly release to
the Mortgage Files for the Mortgage Loans.

     Upon presentation and surrender of the Certificates, the Trustee shall
cause to be distributed to Certificateholders of each Class the amounts
allocable to such Certificates held in the Certificate Account in the order and
priority set forth in Section 4.04 hereof on the final Distribution Date and in
proportion to their respective Percentage Interests.

     In the event that any affected Certificateholders shall not surrender
Certificates for cancellation within six months after the date specified in the
above mentioned written notice, the Trustee shall give a second written notice
to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
six months after the second notice all the applicable Certificates shall not
have been surrendered for cancellation, the Trustee may take appropriate steps,
or may appoint an agent to take appropriate steps, to contact the remaining
Certificateholders

                                     -151-

<PAGE>

concerning surrender of their Certificates, and the cost thereof shall be paid
out of the funds and other assets that remain a part of the Trust Fund. If
within one year after the second notice all Certificates shall not have been
surrendered for cancellation, the Class R Certificateholders shall be entitled
to all unclaimed funds and other assets of the Trust Fund that remain subject
hereto. Upon payment to the Class R Certificateholders of such funds and assets,
the Trustee shall not have any further duties or obligations with respect
thereto.

     SECTION 9.03. Additional Termination Requirements

          (a) In the event the Trustee or the Servicer completes an Optional
Termination as provided in Section 9.01, the Trust Fund shall be terminated in
accordance with the following additional requirements, unless the Trustee has
been supplied with an Opinion of Counsel, at the expense of the Servicer, as
applicable, to the effect that the failure of the Issuing Entity to comply with
the requirements of this Section 9.03 will not (i) result in the imposition of
taxes on "prohibited transactions" of any of the REMICs provided for herein as
defined in Section 860F of the Code, or (ii) cause any of the REMICs provided
for herein to fail to qualify as a REMIC at any time that any Certificates are
outstanding:

          (i) The Depositor shall establish a 90-day liquidation period and
notify the Trustee thereof, and the Trustee shall in turn specify the first day
of such period in a statement attached to the final tax returns of each of the
REMICs provided for herein pursuant to Treasury Regulation Section 1.860F-1. The
Depositor shall satisfy all the requirements of a qualified liquidation under
Section 860F of the Code and any regulations thereunder, as evidenced by an
Opinion of Counsel obtained at the expense of the Servicer;

          (ii) During such 90-day liquidation period, and at or prior to the
time of making the final payment on the Certificates, the Depositor as agent of
the Trustee shall sell all of the assets of the Trust Fund for cash; and

          (iii) At the time of the making of the final payment on the
Certificates, the Trustee shall distribute or credit, or cause to be distributed
or credited, to the Class R Certificateholders all cash on hand (other than cash
retained to meet outstanding claims), and the Trust Fund shall terminate at that
time, whereupon the Trustee shall have no further duties or obligations with
respect to sums distributed or credited to the Class R Certificateholders.

          (b) By their acceptance of the Certificates, the Holders thereof
hereby authorize the Depositor to specify the 90-day liquidation period for the
Trust Fund, which authorization shall be binding upon all successor
Certificateholders.

          (c) The Trustee as agent for each REMIC hereby agrees to adopt and
sign such a plan of complete liquidation prepared and delivered to it by the
Depositor upon the written request of the Depositor, and the receipt of the
Opinion of Counsel referred to in Section 9.03(a) and to take such other action
in connection therewith as may be reasonably requested by the Depositor.

          (d) Notwithstanding any other terms of this Agreement, prior to any
termination of the Trust Fund, the Servicer may prepare a reconciliation of all
Advances and Servicing Advances made by it for which it has not been reimbursed
and a reasonable estimate of all additional Servicing Advances and other costs
for which it would be entitled to be reimbursed if the Trust Fund were not being
terminated, including without limitation, any Servicing Advances and other costs
arising under Section

                                     -152-

<PAGE>

6.03 (Limitation on Liability of the Depositor, the Servicer and Others), and
the Servicer may recover these Advances, Servicing Advances and estimated
Servicing Advances and other costs from the Collection Account (to the extent
that such recovery of Servicing Advances, estimated Servicing Advances and other
costs constitutes "unanticipated expenses" within the meaning of Treasury
Regulation Section 1.860G-1(b)(3)(ii)).

          (e) Notwithstanding any other terms of this Agreement, unless the
Servicer previously has notified the Trustee that it has entered into a
servicing agreement for the servicing after the termination date of the Trust
Fund assets, at least twenty (20) days prior to any termination of the Trust
Fund, the Trustee or the Depositor shall notify the Servicer in writing to
transfer the assets of the Trust Fund as of the termination date to the person
specified in the notice, or if such person is not then known, to continue
servicing the assets until the date that is twenty (20) days after the
termination date and on the termination date, the Trustee or the Depositor shall
notify the Servicer of the person to whom the assets should be transferred on
that date. In the latter event the Servicer shall be entitled to recover its
servicing fee and any advances made for the interim servicing period from the
collections on the assets which have been purchased from the Trust Fund and the
new owner of the assets, and the agreements for the new owner to obtain
ownership of the assets of the Trust Fund shall so provide.

                                    ARTICLE X

                            MISCELLANEOUS PROVISIONS

     SECTION 10.01. Amendment

     This Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer and without the
consent of any of the Certificateholders,

          (i) to cure any ambiguity or correct any mistake,

          (ii) to correct, modify or supplement any provision herein which may
be inconsistent with the Prospectus Supplement or any other provision herein,

          (iii) to add any other provisions with respect to matters or questions
arising under this Agreement, or

          (iv) to modify, alter, amend, add to or rescind any of the terms or
provisions contained in this Agreement, provided, however, that, in the case of
clauses (iii) and (iv), such amendment will not, as evidenced by an Opinion of
Counsel to such effect, adversely affect in any material respect the interests
of any Holder; provided, further, however, that such amendment will be deemed to
not adversely affect in any material respect the interest of any Holder if the
Person requesting such amendment obtains a letter from each Rating Agency
stating that such amendment will not result in a reduction or withdrawal of its
rating of any Class of the Certificates, it being understood and agreed that any
such letter in and of itself will not represent a determination as to the
materiality of any such amendment and will represent a determination only as to
the credit issues affecting any such rating. In addition, this Agreement may be
amended from time to time by the Depositor, the Servicer and the Trustee without
the consent of any of the Certificateholders and without delivery of an opinion
of counsel to comply with the provisions of Regulation AB.

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<PAGE>

     Notwithstanding the foregoing, without the consent of the
Certificateholders, the Depositor, the Servicer and the Trustee may at any time
and from time to time amend this Agreement to modify, eliminate or add to any of
its provisions to such extent as shall be necessary or appropriate to maintain
the qualification of any of the REMICs provided for herein as REMICs under the
Code or to avoid or minimize the risk of the imposition of any tax on the Trust
Fund or any of the REMICs provided for herein pursuant to the Code that would be
a claim against the Trust Fund at any time prior to the final redemption of the
Certificates, provided that the Trustee and the NIMs Insurer shall have been
provided an Opinion of Counsel, which opinion shall be an expense of the party
requesting such amendment but in any case shall not be an expense of the Trustee
or the NIMs Insurer, to the effect that such action is necessary or appropriate
to maintain such qualification or to avoid or minimize the risk of the
imposition of such a tax.

     This Agreement may also be amended from time to time by the Depositor, the
Trustee, the Servicer, the Trustee and the Holders of the Certificates affected
thereby evidencing not less than 66 2/3% of the Voting Rights, with the consent
of the NIMs Insurer, for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Holders of Certificates; provided,
however, that no such amendment shall (i) reduce in any manner the amount of, or
delay the timing of, payments required to be distributed on any Certificate
without the consent of the Holder of such Certificate, (ii) adversely affect in
any material respect the interests of the Holders of any Class of Certificates
in a manner other than as described in (i), without the consent of the Holders
of Certificates of such Class evidencing 66 2/3% or more of the Voting Rights of
such Class or (iii) reduce the aforesaid percentages of Certificates the Holders
of which are required to consent to any such amendment without the consent of
the Holders of all such Certificates then outstanding. A copy of such Opinion of
Counsel shall be provided to the NIMs Insurer.

     Notwithstanding any contrary provision of this Agreement, the Trustee shall
not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel, which opinion shall be an expense of the party
requesting such amendment but in any case shall not be an expense of the
Trustee, to the effect that such amendment will not cause the imposition of any
tax on the Trust Fund, any of the REMICs provided for herein or the
Certificateholders or cause any of the REMICs provided for herein to fail to
qualify as a REMIC at any time that any Certificates are outstanding.

     Promptly after the execution of any amendment to this Agreement requiring
the consent of Certificateholders, the Trustee shall furnish written
notification of the substance of such amendment to each Certificateholder and
each Rating Agency.

     It shall not be necessary for the consent of Certificateholders under this
Section to approve the particular form of any proposed amendment, but it shall
be sufficient if such consent shall approve the substance thereof. The manner of
obtaining such consents and of evidencing the authorization of the execution
thereof by Certificateholders shall be subject to such reasonable regulations as
the Trustee may prescribe.

     Nothing in this Agreement shall require the Trustee or the Servicer to
enter into an amendment without receiving an Opinion of Counsel, satisfactory to
the Trustee or the Servicer that (i) such amendment is permitted and is not
prohibited by this Agreement and that all requirements for amending this
Agreement have been complied with; and (ii) either (A) the amendment does not
adversely affect in any material respect the interests of any Certificateholder
or (B) the conclusion set forth in the immediately preceding clause (A) is not
required to be reached pursuant to this Section 10.01.

                                     -154-

<PAGE>

     The Trustee may, but shall not be obligated to, enter into any supplement,
modification or waiver which affects its rights, duties or obligations
hereunder.

     The Trustee shall not enter into any amendment to this Agreement that could
have a materially adverse effect on the Cap Contract Counterparty or the Swap
Counterparty without first obtaining the consent of the Cap Contract
Counterparty or Swap Counterparty, respectively.

     Notwithstanding anything to the contrary in this Section 10.01, the Trustee
and the Servicer shall reasonably cooperate with the Depositor and its counsel
to enter into such amendments or modifications to this Agreement as may be
necessary to comply with Regulation AB and any interpretation thereof by the
Securities and Exchange Commission.

     SECTION 10.02. Counterparts

     This Agreement may be executed simultaneously in any number of
counterparts, each of which counterparts shall be deemed to be an original, and
such counterparts shall constitute but one and the same instrument.

     SECTION 10.03. Governing Law

     THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO
BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES
THEREOF.

     SECTION 10.04. Intention of Parties

     It is the express intent of the parties hereto that the conveyance of the
Mortgage Notes, Mortgages, assignments of Mortgages, title insurance policies
and any modifications, extensions and/or assumption agreements and private
mortgage insurance policies relating to the Mortgage Loans by the Depositor to
the Trustee be, and be construed as, an absolute sale thereof to the Trustee. It
is, further, not the intention of the parties that such conveyance be deemed a
pledge thereof by the Depositor to the Trustee. However, in the event that,
notwithstanding the intent of the parties, such assets are held to be the
property of the Depositor, or if for any other reason this Agreement is held or
deemed to create a security interest in such assets, then (i) this Agreement
shall be deemed to be a security agreement within the meaning of the Uniform
Commercial Code of the State of New York and (ii) the conveyance provided for in
this Agreement shall be deemed to be an assignment and a grant by the Depositor
to the Trustee, for the benefit of the Certificateholders, of a security
interest in all of the assets that constitute the Trust Fund, whether now owned
or hereafter acquired.

     The Depositor for the benefit of the Certificateholders shall, to the
extent consistent with this Agreement, take such actions as may be necessary to
ensure that, if this Agreement were deemed to create a security interest in the
assets of the Trust Fund, such security interest would be deemed to be a
perfected security interest of first priority under applicable law and will be
maintained as such throughout the term of the Agreement. The Depositor shall
arrange for filing any Uniform Commercial Code continuation

                                     -155-

<PAGE>

statements in connection with any security interest granted or assigned to the
Trustee for the benefit of the Certificateholders.

     SECTION 10.05. Notices

          (a) The Trustee shall use its best efforts to promptly provide notice
to the NIMs Insurer, the Rating Agency, the Cap Contract Counterparty and the
Swap Counterparty with respect to each of the following of which it has actual
knowledge:

          (i) Any material change or amendment to this Agreement;

          (ii) The occurrence of any Event of Default that has not been cured;

          (iii) The resignation or termination of the Trustee or the Servicer
and the appointment of any successor;

          (iv) The repurchase or substitution of Mortgage Loans pursuant to
Sections 2.02 and 2.03;

          (v) The final payment to Certificateholders; and

          (vi) Any change in the location of the Certificate Account.

          (b) The Trustee shall promptly furnish or make available to each
Rating Agency copies of the following:

          (i) Each report to Certificateholders described in Section 4.05;

          (ii) Each annual statement as to compliance described in Section 3.17;
and

          (iii) Each annual independent public accountants' servicing report
described in Section 3.18.

All directions, demands and notices hereunder shall be in writing and shall be
deemed to have been duly given when delivered to (a) in the case of the
Depositor, Merrill Lynch Mortgage Investors, Inc. 250 Vesey Street, 4 World
Financial Center, 10th Floor, New York, New York 10080, Attention: Asset-Backed
Finance; (b) in the case of the Rating Agencies, (i) Standard & Poor's Ratings
Services, a division of The McGraw-Hill Companies, Inc., 55 Water Street, New
York, New York 10041and (ii) Moody's Investors Service, Inc., 99 Church Street,
4th Floor, New York, New York 10007; (c) in the case of the Servicer, Home Loan
Services, Inc., 150 Allegheny Center Mall, Pittsburgh, Pennsylvania 15212,
Attention: VP Investor Reporting; (d) in the case of the Trustee, LaSalle Bank
National Association, 135 South LaSalle Street, Suite 1511, Chicago, Illinois
60603 Attention: Global Securities and Trust Services--FFMER 2007-2; (e) in the
case of the Cap Contract Counterparty or the Swap Counterparty as provided for
in the Swap Agreement and the Corridor Contract, and in the case of any of the
foregoing persons, such other addresses as may hereafter be furnished by any
such persons to the other parties to this Agreement. Notices to
Certificateholders shall be deemed given when mailed, first class postage
prepaid, to their respective addresses appearing in the Certificate Register.

     SECTION 10.06. Severability of Provisions

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<PAGE>

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

     SECTION 10.07. Assignment; Sales; Advance Facilities

     Notwithstanding anything to the contrary contained herein, except as
provided pursuant to Section 6.02, this Agreement may not be assigned by the
Servicer without the prior written consent of the Trustee and Depositor;
provided, however, the Servicer is hereby authorized to enter into an Advance
Facility under which (l) the Servicer sells, assigns or pledges to an Advancing
Person the Servicer's rights under this Agreement to be reimbursed for any
Advances or Servicing Advances and/or (2) an Advancing Person agrees to fund
some or all Advances or Servicing Advances required to be made by the Servicer
pursuant to this Agreement. No consent of the Trustee, Certificateholders or any
other party is required before the Servicer may enter into an Advance Facility.
Notwithstanding the existence of any Advance Facility under which an Advancing
Person agrees to fund Advances and/or Servicing Advances on the Servicer's
behalf, the Servicer shall remain obligated pursuant to this Agreement to make
Advances and Servicing Advances pursuant to and as required by this Agreement,
and shall not be relieved of such obligations by virtue of such Advance
Facility.

     Reimbursement amounts shall consist solely of amounts in respect of
Advances and/or Servicing Advances made with respect to the Mortgage Loans for
which the Servicer would be permitted to reimburse itself in accordance with
this Agreement, assuming the Servicer had made the related Advance(s) and/or
Servicing Advance(s).

     The Servicer shall maintain and provide to any successor Servicer a
detailed accounting on a loan by loan basis as to amounts advanced by, pledged
or assigned to, and reimbursed to any Advancing Person. The successor Servicer
shall be entitled to rely on any such information provided by the predecessor
Servicer, and the successor Servicer shall not be liable for any errors in such
information.

     An Advancing Person who purchases or receives an assignment or pledge of
the rights to be reimbursed for Advances and/or Servicing Advances, and/or whose
obligations hereunder are limited to the funding of Advances and/or Servicing
Advances shall not be required to meet the criteria for qualification of a
Subservicer set forth in this Agreement.

     The documentation establishing any Advance Facility shall require that such
reimbursement amounts distributed with respect to each Mortgage Loan be
allocated to outstanding unreimbursed Advances or Servicing Advances (as the
case may be) made with respect to that Mortgage Loan on a "first in, first out"
(FIFO) basis. Such documentation shall also require the Servicer to provide to
the related Advancing Person or its designee loan by loan information with
respect to each such reimbursement amount distributed to such Advancing Person
or Advance Facility trustee on each Distribution Date, to enable the Advancing
Person or Advance Facility trustee to make the FIFO allocation of each such
reimbursement amount with respect to each Mortgage Loan. The Servicer shall
remain entitled to be reimbursed by the Advancing Person or Advance Facility
trustee for all Advances and Servicing Advances funded by the Servicer to the
extent the related rights to be reimbursed therefor have not been sold, assigned
or pledged to an Advancing Person.

                                     -157-

<PAGE>

     Any amendment to this Section 10.07 or to any other provision of this
Agreement that may be necessary or appropriate to effect the terms of an Advance
Facility as described generally in this Section 10.07, including amendments to
add provisions relating to a successor Servicer, may be entered into by the
Trustee and the Servicer, without the consent of any Certificateholder
notwithstanding anything to the contrary in this Agreement, upon receipt by the
Trustee of an Opinion of Counsel that such amendment has no material adverse
effect on the Certificateholders or the Swap Counterparty or written
confirmation from the Rating Agencies that such amendment will not adversely
affect the ratings on the Certificates. Prior to entering into an Advance
Facility, the Servicer shall notify the lender under such facility in writing
that: (a) the Advances financed by and/or pledged to the lender are obligations
owed to the Servicer on a non recourse basis payable only from the cash flows
and proceeds received under this Agreement for reimbursement of Advances only to
the extent provided herein, and the Trustee and the Trust Fund are not otherwise
obligated or liable to repay any Advances financed by the lender; (b) the
Servicer will be responsible for remitting to the lender the applicable amounts
collected by it as reimbursement for Advances funded by the lender, subject to
the restrictions and priorities created in this Agreement; and (c) the Trustee
shall not have any responsibility to track or monitor the administration of the
financing arrangement between the Servicer and the lender.

     SECTION 10.08. Limitation on Rights of Certificateholders

     The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the Trust Fund, nor entitle such Certificateholder's
legal representative or heirs to claim an accounting or to take any action or
commence any proceeding in any court for a petition or winding up of the Trust
Fund, or otherwise affect the rights, obligations and liabilities of the parties
hereto or any of them.

     No Certificateholder shall have any right to vote (except as provided
herein) or in any manner otherwise control the operation and management of the
Trust Fund, or the obligations of the parties hereto, nor shall anything herein
set forth or contained in the terms of the Certificates be construed so as to
constitute the Certificateholders from time to time as partners or members of an
association; nor shall any Certificateholder be under any liability to any third
party by reason of any action taken by the parties to this Agreement pursuant to
any provision hereof.

     No Certificateholder shall have any right by virtue or by availing itself
of any provisions of this Agreement to institute any suit, action or proceeding
in equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of an Event
of Default and of the continuance thereof, as hereinbefore provided, the Holders
of Certificates evidencing not less than 25% of the Voting Rights evidenced by
the Certificates shall also have made written request to the Trustee to
institute such action, suit or proceeding in its own name as Trustee hereunder
and shall have offered to the Trustee (individually and as trustee) such
indemnity satisfactory to it as it may require against the costs, expenses, and
liabilities to be incurred therein or thereby, and the Trustee, for sixty (60)
days after its receipt of such notice, request and offer of indemnity shall have
neglected or refused to institute any such action, suit or proceeding; it being
understood and intended, and being expressly covenanted by each
Certificateholder with every other Certificateholder and the Trustee, that no
one or more Holders of Certificates shall have any right in any manner whatever
by virtue or by availing itself or themselves of any provisions of this
Agreement to affect, disturb or prejudice the rights of the Holders of any other
of the Certificates and/or the NIMs Insurer, or to obtain or seek to obtain
priority over or preference to any other such Holder and/or the NIMs Insurer or
to enforce any right under this Agreement, except in the manner herein provided
and for the common benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section 10.08, each and

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<PAGE>

every Certificateholder and the Trustee shall be entitled to such relief as can
be given either at law or in equity.

     SECTION 10.09. Inspection and Audit Rights

     The Servicer agrees that, on reasonable prior notice, it will permit any
representative of the Depositor or the Trustee during the Servicer's normal
business hours, to examine all the books of account, records, reports and other
papers of the Servicer relating to the Mortgage Loans to make copies and
extracts therefrom, to cause such books to be audited by independent certified
public accountants selected by the Depositor or the Trustee and to discuss its
affairs, finances and accounts relating to the Mortgage Loans with its officers,
employees, agents, counsel and independent public accountants (and by this
provision the Servicer hereby authorizes such accountants to discuss with such
representative such affairs, finances and accounts), all at such reasonable
times and as often as may be reasonably requested. Any out-of-pocket expense
incident to the exercise by the Depositor or the Trustee of any right under this
Section 10.09 shall be borne by the party requesting such inspection (except in
the case of the Trustee in which case such expenses shall be borne by the
requesting Certificateholder(s)); all other such expenses shall be borne by the
Servicer.

     SECTION 10.10. Certificates Nonassessable and Fully Paid

     It is the intention of the Depositor that Certificateholders shall not be
personally liable for obligations of the Issuing Entity, that the interests in
the Issuing Entity represented by the Certificates shall be nonassessable for
any reason whatsoever, and that the Certificates, upon due authentication
thereof by the Authenticating Agent pursuant to this Agreement, are and shall be
deemed fully paid.

     SECTION 10.11. Compliance with Regulation AB

     Each of the parties hereto acknowledges and agrees that the purpose of
Sections 3.17, 3.18 and 3.20 of this Agreement is to facilitate compliance by
the Depositor with the provisions of Regulation AB, as such may be amended or
clarified from time to time. Therefore, each of the parties agrees that (a) the
obligations of the parties hereunder shall be interpreted in such a manner as to
accomplish compliance with Regulation AB, (b) the parties' obligations hereunder
will be supplemented and modified as necessary to be consistent with any such
amendments, interpretive advice or guidance, or convention or consensus among
active participants in the asset-backed securities markets in respect of the
requirements of Regulation AB and (c) the parties shall comply with reasonable
requests made by the Depositor for delivery of that or different information as
is necessary to comply with the provisions of Regulation AB.

     SECTION 10.12. Third Party Rights

     The Cap Contract Counterparty and Swap Counterparty shall be deemed third
party beneficiaries of this Agreement regarding provisions related to payments
owed to the Cap Contract Counterparty or Swap Counterparty, respectively, so
long as any of the Corridor Contracts or the Swap Agreement, as applicable,
remains in effect

     SECTION 10.13. Additional Rights of the NIMs Insurer

     Provided that a party to this Agreement has been provided with the contact
information of the NIMs Insurer, such party, any agent thereof and any successor
thereto shall furnish to the NIMs Insurer a

                                     -159-

<PAGE>

copy of any notice, direction, demand, opinion, schedule, list, certificate,
report or filing required to be provided under this Agreement and provided by it
or on its behalf to any other Person pursuant to this Agreement at the same
time, in the same form and in the same manner as such communication is so
provided and shall address or cause such communication to be addressed to the
NIMs Insurer in addition to any other addressee thereof. The Servicer shall
cause the NIMs Insurer to be an addressee of any report furnished pursuant to
this Agreement. With respect to the Trustee, such obligation shall be satisfied
with the provision of access to the NIMs Insurer to the Trustee's website.

     Unless there exists a continuance of any failure by the NIMs Insurer to
make a required payment under the policy insuring the NIM Notes (such event, a
"NIMs Insurer Default"), wherever in this Agreement there shall be a requirement
that any Person or any communication, object or other matter be acceptable or
satisfactory to or otherwise receive the consent or other approval of any other
Person (whether as a condition to the eligibility of such Person to act in any
capacity, as a condition to any circumstance or state of affairs related to such
matter, or otherwise), there also shall be deemed to be a requirement that such
Person or matter be approved in writing by the NIMs Insurer, which approval
shall not be unreasonably withheld or delayed.

                                      -160-

<PAGE>

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

                                        MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                        as Depositor

                                        By:
                                            ------------------------------------
                                        Name: Paul Park
                                        Title: Authorized Signatory

                                        LASALLE BANK NATIONAL ASSOCIATION
                                        as Trustee

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

                                        HOME LOAN SERVICES, INC.,
                                        as Servicer

                                        By:
                                             -----------------------------------
                                        Name: Steven A. Baranet
                                        Title: Vice President

<PAGE>

Acknowledged and agreed to as of the
day and year first above written with
respect to Section 2.03(b) only.

FIRST FRANKLIN FINANCIAL CORPORATION,
as Sponsor

By:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------
<PAGE>

                                    EXHIBIT A

                              FORMS OF CERTIFICATES

                                       A-1

<PAGE>

                           FORM OF CLASS A CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT", AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED AND (II) AN INTEREST IN NOTIONAL PRINCIPAL
CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED
HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

UNTIL THE TERMINATION OF THE SWAP AGREEMENT AND THE INTEREST RATE CAP AGREEMENT,
EACH TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO REPRESENT (OR IN THE CASE
OF A DEFINITIVE CERTIFICATE, SHALL REPRESENT) TO THE TRUSTEE THAT (A) SUCH
TRANSFEREE IS NOT, AND IS NOT ACTING FOR, ON BEHALF OF OR WITH ANY ASSETS OF,
ANY EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR ANY
PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
(THE "CODE"), OR (B) THE TRANSFEREE'S ACQUISITION AND HOLDING OF THIS
CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION
UNDER TITLE I OF ERISA OR SECTION 4975 OF THE CODE.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                                      A-2
<PAGE>

                             CLASS A-[____] CERTIFICATE

Number: 07-1-A-[____]-1          Original Denomination:
                                 $[____]

Cut-off Date: April 1, 2007      Last Scheduled
                                 Distribution Date: May 25, 2037

First Distribution Date:         Aggregate Initial Certificate
May 25, 2007                     Balance of all Class A-[____]
                                 Certificates: $[____]

Pass-Through Rate: Variable(1)   CUSIP: [____]

----------
(1)  Subject to a cap as described in the Agreement.

                                      A-3
<PAGE>

                MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                  Series 2007-2

evidencing an ownership interest in distributions allocable to the Class A-[ ]
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class A-[ ] Certificates) in certain distributions
with respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are secured
by first-lien mortgages on the Mortgaged Properties. The Trust Fund was created
pursuant to a pooling and servicing agreement (the "Agreement"), dated as of
April 1, 2007, among the Depositor, the Servicer and LaSalle Bank National
Association ("LB"), as trustee (the "Trustee"), a summary of certain of the
pertinent provisions of which is set forth hereafter. To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust Mortgage Loan
Asset-Backed Certificates, Series 2007-2, Class A-[ ] (the "Class A-[ ]
Certificates") and is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which Agreement such Holder is
bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing in April 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
preceding the month in which such payment is made.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it

                                      A-4
<PAGE>

appears on the Certificate Register; provided, however, that the final
distribution in retirement of the certificates will be made only upon
presentation and surrender of this Certificate at the office of the Trustee or
such other address designated in writing by the Trustee. On each Distribution
Date, a holder of this Certificate will receive such holder's Percentage
Interest of the amounts required to be distributed with respect to the
applicable Class of Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee, will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-5
<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: April 26, 2007                   LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    ---------------------------------
    Authorized Signatory

                                      A-6
<PAGE>

                             REVERSE OF CERTIFICATE

                MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                  Series 2007-2

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust Mortgage Loan
Asset-Backed Certificates, Series 2007-2, issued in one or more Classes of Class
A Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders,
to cure any ambiguity, to correct or supplement any provisions therein which may
be inconsistent with the other provisions therein, to ensure continuing
treatment of each REMIC included in the Trust Fund as a REMIC, or to make any
other provisions with respect to matters or questions arising under the
Agreement which are not materially inconsistent with the provisions of the
Agreement, provided that such action does not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66 2/3% of the Percentage Interests of
each Class of Certificates affected thereby, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) adversely affect in any
material respect the interests of the Holders of

                                      A-7
<PAGE>

any Class of Certificates in a manner other than as described in clause (i),
without the consent of the Holders of Certificates of such Class evidencing 66
2/3% or more of the Voting Rights of such Class or (iii) change the percentage
specified in clause (ii) of the third paragraph of Section 10.01 of the
Agreement, without the consent of the Holders of all Certificates of such Class
then outstanding.

     The Class A (other than the Class R Certificates), Class M, and Class B
Certificates are issuable only in registerable form, in minimum denominations of
$25,000 in initial Certificate Principal Amount and in integral multiples of $1
in excess thereof, registered in the name of the nominee of the Clearing Agency,
which shall maintain such Certificates through its book-entry facilities. The
Class R Certificates are issuable in minimum denominations of $100 and shall be
maintained in physical, fully registered form. The Class P Certificates are
issuable in minimum denominations of 100% and shall be maintained in physical,
fully registered form. The Class C Certificates are issuable in minimum
denominations of 25% and shall be maintained in physical, fully registered form.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC"). The REMIC Regular
Interests will represent "regular interests" in one of the REMICs included in
the Trust Fund. The Class R Certificate will represent the sole class of
"residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Trustee of an Optional Termination; and (b) the later of (i) the maturity
or other liquidation (or any Advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and the disposition of all REO Property and
(ii) the distribution to Certificateholders of all amounts required to be
distributed to them pursuant to this Agreement, as applicable. In no event shall
the trusts created under the Agreement continue beyond the earlier of (i) the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof and (ii) the Latest Possible Maturity Date.

                                      A-8
<PAGE>

                              [FORM OF ASSIGNMENT]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________
(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

__________________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated: ______________________________   NOTICE: The signature to this assignment
(Signature guaranty)                    must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
                                        alteration or enlargement or any change
                                        whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-9

<PAGE>

                          FORM OF CLASS B CERTIFICATES

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT", AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED AND (II) AN INTEREST IN NOTIONAL PRINCIPAL
CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MERRILL
LYNCH MORTGAGE INVESTORS, INC. ("MLMI"), THE TRUSTEE, OR ANY SERVICER REFERRED
TO BELOW OR ANY OF THEIR AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC REGULAR
INTEREST REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR
INSURED BY MLMI, the TRUSTEE, ANY SERVICER OR BY ANY OF THEIR AFFILIATES OR BY
ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

UNTIL THE TERMINATION OF THE SWAP AGREEMENT AND THE INTEREST RATE CAP CONTRACT,
EACH TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO REPRESENT (OR IN THE CASE
OF A DEFINITIVE CERTIFICATE, SHALL REPRESENT) TO THE TRUSTEE THAT (A) SUCH
TRANSFEREE IS NOT, AND IS NOT ACTING FOR, ON BEHALF OF OR WITH ANY ASSETS OF,
ANY EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR ANY
PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
(THE "CODE"), OR (B) THE TRANSFEREE'S ACQUISITION AND HOLDING OF THIS
CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION
UNDER TITLE I OF ERISA OR SECTION 4975 OF THE CODE..

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                           CLASS B-[____] CERTIFICATE

Number: 07-1-B-[____]-1          Original Denomination:
                                 $[____]

Cut-off Date: April 1, 2007      Last Scheduled
                                 Distribution Date: May 25, 2037

First Distribution Date:         Aggregate Initial Certificate
April 25, 2007                   Balance of all Class B-[____]
                                 Certificates: $[____]

Pass-Through Rate: Variable(2)   CUSIP: [____]

----------
(2)  Subject to a cap as described in the Agreement.

                                      A-10

<PAGE>

                MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                  Series 2007-2

evidencing an ownership interest in distributions allocable to the Class B-[ ]
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     Unless this Certificate is presented by an authorized representative of the
Depository Trust Company, a New York corporation ("DTC"), to the Trustee for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class B-[ ] Certificates) in certain distributions
with respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are secured
by first-lien mortgages on Mortgaged Properties. The Trust Fund was created
pursuant to a pooling and servicing agreement (the "Agreement"), dated as of
April 1, 2007, between the Depositor, the Servicer and LaSalle Bank National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2, Class B-[____] (the "Class B-[____]
Certificates") and is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which Agreement such Holder is
bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing in April 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
preceding the month in which such payment is made.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it appears on the Certificate Register; provided,
however, that the final distribution in retirement of the

                                      A-11

<PAGE>

certificates will be made only upon presentation and surrender of this
Certificate at the office of the Trustee or such other address designated in
writing by the Trustee. On each Distribution Date, a holder of this Certificate
will receive such holder's Percentage Interest of the amounts required to be
distributed with respect to the applicable Class of Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee, will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-12

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: April 26, 2007                   LASALLE BANK NATIONAL ASSOCIATION, as
                                        Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the
Certificates referred to
in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    ---------------------------------
    Authorized Signatory

                                      A-13

<PAGE>

                             REVERSE OF CERTIFICATE

                MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                  SERIES 2007-2

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust Mortgage Loan
Asset-Backed Certificates, Series 2007-2, issued in one or more Classes of Class
A Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders,
to cure any ambiguity, to correct or supplement any provisions therein which may
be inconsistent with the other provisions therein, to ensure continuing
treatment of each REMIC included in the Trust Fund as a REMIC, or to make any
other provisions with respect to matters or questions arising under the
Agreement which are not materially inconsistent with the provisions of the
Agreement, provided that such action does not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66 2/3% of the Percentage Interests of
each Class of Certificates affected thereby for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) adversely affect in any
material respect the interests of the Holders of any Class of Certificates in a
manner other than as described in clause (i), without the consent of the

                                      A-14

<PAGE>

Holders of Certificates of such Class evidencing 66 2/3% or more of the Voting
Rights of such Class or (iii) change the percentage specified in clause (ii) of
the third paragraph of Section 10.01 of the Agreement, without the consent of
the Holders of all Certificates of such Class then outstanding.

     The Class A (other than the Class R Certificates), Class M, and Class B
Certificates are issuable only in registerable form, in minimum denominations of
$25,000 in initial Certificate Principal Amount and in integral multiples of $1
in excess thereof, registered in the name of the nominee of the Clearing Agency,
which shall maintain such Certificates through its book-entry facilities. The
Class R Certificates are issuable in minimum denominations of $100 and shall be
maintained in physical, fully registered form. The Class P Certificates are
issuable in minimum denominations of 100% and shall be maintained in physical,
fully registered form. The Class C Certificates are issuable in minimum
denominations of 25% and shall be maintained in physical, fully registered form.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC") in a tiered REMIC
structure. The REMIC Regular Interests will represent "regular interests" in one
of the REMICs included in the Trust Fund. The Class R Certificate will represent
the sole class of "residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Trustee of an Optional Termination; and (b) the later of (i) the maturity
or other liquidation (or any Advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and the disposition of all REO Property and
(ii) the distribution to Certificateholders of all amounts required to be
distributed to them pursuant to this Agreement, as applicable. In no event shall
the trusts created under the Agreement's continue beyond the earlier of (i) the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof and (ii) the Latest Possible Maturity Date.

                                      A-15

<PAGE>

                              [FORM OF ASSIGNMENT]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________
(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

_______________________________________________________ Attorney to transfer the
within Certificate on the books kept for the registration thereof, with full
power of substitution in the premises.

Dated: ______________________________   ________________________________________
(Signature guaranty)                    NOTICE: The signature to this assignment
                                        must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
                                        alteration or enlargement or any change
                                        whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-16

<PAGE>

                          FORM OF CLASS M CERTIFICATES

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT", AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED AND (II) AN INTEREST IN NOTIONAL PRINCIPAL
CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED
HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

UNTIL THE TERMINATION OF THE SWAP AGREEMENT AND THE INTEREST RATE CAP AGREEMENT,
EACH TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO REPRESENT (OR IN THE CASE
OF A DEFINITIVE CERTIFICATE, SHALL REPRESENT) TO THE TRUSTEE THAT (A) SUCH
TRANSFEREE IS NOT, AND IS NOT ACTING FOR, ON BEHALF OF OR WITH ANY ASSETS OF,
ANY EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR ANY
PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
(THE "CODE"), OR (B) THE TRANSFEREE'S ACQUISITION AND HOLDING OF THIS
CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION
UNDER TITLE I OF ERISA OR SECTION 4975 OF THE CODE.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                                      A-17

<PAGE>

                           CLASS M-[____] CERTIFICATE

Number: 07-1-M-[____]-1          Original Denomination:
                                 $[____]

Cut-off Date: April 1, 2007      Last Scheduled
                                 Distribution Date: May 25, 2037

First Distribution Date:         Aggregate Initial Certificate
May 25, 2007                     Balance of all Class M-[____]
                                 Certificates: $[____]

Pass-Through Rate: Variable(3)   CUSIP: [____]

----------
(3)  Subject to a cap as described in the Agreement.

                                      A-18

<PAGE>

                MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                  Series 2007-2

evidencing an ownership interest in distributions allocable to the Class
M-[____] Certificates with respect to a pool of conventional, sub-prime mortgage
loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class M-1 Certificates) in certain distributions with
respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are secured
by first-lien mortgages on the Mortgaged Properties. The Trust Fund was created
pursuant to a pooling and servicing agreement (the "Agreement"), dated as of
April 1, 2007, among the Depositor, the Servicer and LaSalle Bank National
Association ("LB"), as trustee (the "Trustee"), a summary of certain of the
pertinent provisions of which is set forth hereafter. To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust Mortgage Loan
Asset-Backed Certificates, Series 2007-2, Class M-[____] (the "Class M-[____]
Certificates") and is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which Agreement such Holder is
bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing in April 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
preceding the month in which such payment is made.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it

                                      A-19

<PAGE>

appears on the Certificate Register; provided, however, that the final
distribution in retirement of the certificates will be made only upon
presentation and surrender of this Certificate at the office of the Trustee or
such other address designated in writing by the Trustee. On each Distribution
Date, a holder of this Certificate will receive such holder's Percentage
Interest of the amounts required to be distributed with respect to the
applicable Class of Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee, will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-20

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: April 26, 2007                   LASALLE BANK NATIONAL ASSOCIATION, as
                                        Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    ---------------------------------
    Authorized Signatory

                                      A-21

<PAGE>

                             REVERSE OF CERTIFICATE

                MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                  Series 2007-2

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust Mortgage Loan
Asset-Backed Certificates, Series 2007-2, issued in one or more Classes of Class
A Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders,
to cure any ambiguity, to correct or supplement any provisions therein which may
be inconsistent with the other provisions therein, to ensure continuing
treatment of each REMIC included in the Trust Fund as a REMIC, or to make any
other provisions with respect to matters or questions arising under the
Agreement which are not materially inconsistent with the provisions of the
Agreement, provided that such action does not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66 2/3% of the Percentage Interests of
each Class of Certificates affected thereby, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) adversely affect in any
material respect the interests of the Holders of

                                      A-22

<PAGE>

any Class of Certificates in a manner other than as described in clause (i),
without the consent of the Holders of Certificates of such Class evidencing 66
2/3% or more of the Voting Rights of such Class or (iii) change the percentage
specified in clause (ii) of the third paragraph of Section 10.01 of the
Agreement, without the consent of the Holders of all Certificates of such Class
then outstanding.

     The Class A (other than the Class R Certificates), Class M, and Class B
Certificates are issuable only in registerable form, in minimum denominations of
$25,000 in initial Certificate Principal Amount and in integral multiples of $1
in excess thereof, registered in the name of the nominee of the Clearing Agency,
which shall maintain such Certificates through its book-entry facilities. The
Class R Certificates are issuable in minimum denominations of $100 and shall be
maintained in physical, fully registered form. The Class P Certificates are
issuable in minimum denominations of 100% and shall be maintained in physical,
fully registered form. The Class C Certificates are issuable in minimum
denominations of 25% and shall be maintained in physical, fully registered form.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC"). The REMIC Regular
Interests will represent "regular interests" in one of the REMICs included in
the Trust Fund. The Class R Certificate will represent the sole class of
"residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Trustee of an Optional Termination; and (b) the later of (i) the maturity
or other liquidation (or any Advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and the disposition of all REO Property and
(ii) the distribution to Certificateholders of all amounts required to be
distributed to them pursuant to this Agreement, as applicable. In no event shall
the trusts created under the Agreement continue beyond the earlier of (i) the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof and (ii) the Latest Possible Maturity Date.

                                      A-23

<PAGE>

                              [FORM OF ASSIGNMENT]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________
(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

_______________________________________________________ Attorney to transfer the
within Certificate on the books kept for the registration thereof, with full
power of substitution in the premises.

Dated: ______________________________   NOTICE: The signature to this assignment
(Signature guaranty)                    must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
                                        alteration or enlargement or any change
                                        whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-24

<PAGE>

                           FORM OF CLASS C CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS AN INTEREST
IN A GRANTOR TRUST THAT HOLDS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE
INVESTMENT CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G
AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND IS
TREATED AS HAVING ENTERED INTO CERTAIN NOTIONAL PRINCIPAL CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED
HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

THIS CLASS C CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR TRANSFERRED UNLESS IT IS SOLD OR TRANSFERRED IN TRANSACTIONS
WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT OR UNDER APPLICABLE STATE LAW
AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE TRUSTEE AND THE DEPOSITOR WITH (A) A REPRESENTATION THAT
SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN
SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO ANY STATE, LOCAL,
FEDERAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS
OF ERISA OR THE CODE ("SIMILAR LAW"), AND IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH
PLAN, (B) IF THE CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING
UNDERWRITING, A REPRESENTATION THAT SUCH TRANSFEREE IS AN INSURANCE COMPANY THAT
IS ACQUIRING THE CERTIFICATE WITH ASSETS OF AN "INSURANCE COMPANY GENERAL
ACCOUNT" AS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION CLASS EXEMPTION
("PTCE") 95-60 AND THE ACQUISITION AND HOLDING OF THE CERTIFICATE ARE COVERED
AND EXEMPT UNDER SECTIONS I AND III OF PTCE 95-60 OR (C) SOLELY IN THE CASE OF A
DEFINITIVE CERTIFICATE, AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE, AND
UPON WHICH THE TRUSTEE SHALL BE ENTITLED TO RELY, TO THE EFFECT THAT THE
ACQUISITION AND HOLDING OF SUCH CERTIFICATE BY THE PROSPECTIVE TRANSFEREE WILL
NOT CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED TRANSACTION UNDER ERISA OR
THE CODE OR A VIOLATION OF SIMILAR LAW AND WILL NOT SUBJECT THE NIMS INSURER,
THE TRUSTEE, THE SERVICER OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO
THOSE UNDERTAKEN BY SUCH ENTITIES IN THE POOLING AND SERVICING AGREEMENT, WHICH
OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE NIMS INSURER, THE TRUSTEE, THE
SERVICER OR THE DEPOSITOR.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN

                                      A-25

<PAGE>

BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL
BALANCE BY INQUIRY OF THE TRUSTEE.

                               CLASS C CERTIFICATE

Number: 07-1-C-1                        Percentage Interest:
                                        100%

Cut-off Date: April 1, 2007

First Distribution Date: May 25, 2007

Pass-Through Rate: Variable             CUSIP: [____]

                                      A-26

<PAGE>

                MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                  SERIES 2007-2

evidencing an ownership interest in distributions allocable to the Class C
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as
nominee for Merrill Lynch Funding Corp, is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class C Certificates) in certain distributions with
respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are secured
by first-lien mortgages on the Mortgaged Properties. The Trust Fund was created
pursuant to a pooling and servicing agreement (the "Agreement"), dated as of
April 1, 2007, among the Depositor, the Servicer and Lasalle Bank National
Association ("LB"), as trustee (the "Trustee"), a summary of certain of the
pertinent provisions of which is set forth hereafter. To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust Mortgage Loan
Asset-Backed Certificates, Series 2007-2, Class C (the "Class C Certificates")
and is issued under and is subject to the terms, provisions and conditions of
the Agreement, to which Agreement the Holder of this Certificate by virtue of
the acceptance hereof assents and by which Agreement such Holder is bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing in April 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
preceding the month in which such payment is made.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it appears on the Certificate Register; provided,
however, that the final distribution in retirement of the certificates will be
made only upon presentation and surrender of this Certificate at the office of
the Trustee or such other address designated in writing by the Trustee. On each
Distribution Date, a holder of this Certificate will receive such holder's
Percentage Interest of the amounts required to be distributed with respect to
the applicable Class of Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates

                                      A-27

<PAGE>

and of transfers and exchanges of Certificates. Upon surrender for registration
of transfer of any Certificate at any office or agency of the Trustee, or, if an
Authenticating Agent has been appointed under the Agreement, the Authenticating
Agent, maintained for such purpose, the Trustee, will, subject to the
limitations set forth in the Agreement, authenticate and deliver, in the name of
the designated transferee or transferees, a Certificate of a like class and
dated the date of authentication by the Authenticating Agent. Notwithstanding
the above, the final distribution on this Certificate will be made after due
notice by the Trustee, of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee, for that purpose and specified in such notice of final
distribution.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-28

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: April 26, 2007                   LASALLE BANK NATIONAL ASSOCIATION, as
                                        Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    ---------------------------------
    Authorized Signatory

                                      A-29

<PAGE>

                             REVERSE OF CERTIFICATE

                MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                  Series 2007-2

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust Mortgage Loan
Asset-Backed Certificates, Series 2007-2, issued in one or more Classes of Class
A Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders,
to cure any ambiguity, to correct or supplement any provisions therein which may
be inconsistent with the other provisions therein, to ensure continuing
treatment of each REMIC included in the Trust Fund as a REMIC, or to make any
other provisions with respect to matters or questions arising under the
Agreement which are not materially inconsistent with the provisions of the
Agreement, provided that such action does not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66 2/3% of the Percentage Interests of
each Class of Certificates affected thereby, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) adversely affect in any
material respect the interests of the Holders of any Class of Certificates in a
manner other than as described in clause (i), without the consent of the

                                      A-30

<PAGE>

Holders of Certificates of such Class evidencing 66 2/3% or more of the Voting
Rights of such Class or (iii) change the percentage specified in clause (ii) of
the third paragraph of Section 10.01 of the Agreement, without the consent of
the Holders of all Certificates of such Class then outstanding.

     The Class A (other than the Class R Certificates), Class M, and Class B
Certificates are issuable only in registerable form, in minimum denominations of
$25,000 in initial Certificate Principal Amount and in integral multiples of $1
in excess thereof, registered in the name of the nominee of the Clearing Agency,
which shall maintain such Certificates through its book-entry facilities. The
Class R Certificates are issuable in minimum denominations of $100 and shall be
maintained in physical, fully registered form. The Class P Certificates are
issuable in minimum denominations of 100% and shall be maintained in physical,
fully registered form. The Class C Certificates are issuable in minimum
denominations of 25% and shall be maintained in physical, fully registered form.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC"). The REMIC Regular
Interests will represent "regular interests" in one of the REMICs included in
the Trust Fund. The Class R Certificate will represent the sole class of
"residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Trustee of an Optional Termination; and (b) the later of (i) the maturity
or other liquidation (or any Advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and the disposition of all REO Property and
(ii) the distribution to Certificateholders of all amounts required to be
distributed to them pursuant to this Agreement, as applicable. In no event shall
the trusts created under the Agreement continue beyond the earlier of (i) the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof and (ii) the Latest Possible Maturity Date.

                                      A-31

<PAGE>

                                   ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________
(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________
________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

________________________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated: ______________________________   NOTICE: The signature to this assignment
(Signature guaranty)                    must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
                                        alteration or enlargement or any change
                                        whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-32

<PAGE>

                           FORM OF CLASS P CERTIFICATE

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE
GUARANTEED OR INSURED BY THE DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF
THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

THIS CLASS P CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR TRANSFERRED UNLESS IT IS SOLD OR TRANSFERRED IN TRANSACTIONS
WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT OR UNDER APPLICABLE STATE LAW
AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE TRUSTEE AND THE DEPOSITOR WITH (A) A REPRESENTATION THAT
SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN
SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO ANY STATE, LOCAL,
FEDERAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS
OF ERISA OR THE CODE ("SIMILAR LAW"), AND IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH
PLAN, (B) IF THE CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING
UNDERWRITING, A REPRESENTATION THAT SUCH TRANSFEREE IS AN INSURANCE COMPANY THAT
IS ACQUIRING THE CERTIFICATE WITH ASSETS OF AN "INSURANCE COMPANY GENERAL
ACCOUNT" AS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION CLASS EXEMPTION
("PTCE") 95-60 AND THE ACQUISITION AND HOLDING OF THE CERTIFICATE ARE COVERED
AND EXEMPT UNDER SECTIONS I AND III OF PTCE 95-60 OR (C) SOLELY IN THE CASE OF A
DEFINITIVE CERTIFICATE, AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE, AND
UPON WHICH THE TRUSTEE SHALL BE ENTITLED TO RELY, TO THE EFFECT THAT THE
ACQUISITION AND HOLDING OF SUCH CERTIFICATE BY THE PROSPECTIVE TRANSFEREE WILL
NOT CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED TRANSACTION UNDER ERISA OR
THE CODE OR A VIOLATION OF SIMILAR LAW AND WILL NOT SUBJECT THE NIMS INSURER,
THE TRUSTEE, THE SERVICER OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO
THOSE UNDERTAKEN BY SUCH ENTITIES IN THE POOLING AND SERVICING AGREEMENT, WHICH
OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE NIMS INSURER, THE TRUSTEE, THE
SERVICER OR THE DEPOSITOR.

                                      A-33

<PAGE>

                               CLASS P CERTIFICATE

Number: 07-1-P-1                        Percentage Interest: 100%

Cut-off Date: April 1, 2007

First Distribution Date: May 25, 2007   CUSIP: [____]

                                      A-34

<PAGE>

                MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                  SERIES 2007-2

evidencing an ownership interest in distributions allocable to the Class P
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as
nominee for Merrill Lynch Funding Corp, is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class P Certificates) in certain distributions with
respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are secured
by first-lien mortgages on the Mortgaged Properties. The Trust Fund was created
pursuant to a pooling and servicing agreement (the "Agreement"), dated as of
April 1, 2007, among the Depositor, the Servicer and LaSalle Bank National
Association ("LB"), as trustee (the "Trustee"), a summary of certain of the
pertinent provisions of which is set forth hereafter. To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2, Class P (the "Class P Certificates")
and is issued under and is subject to the terms, provisions and conditions of
the Agreement, to which Agreement the Holder of this Certificate by virtue of
the acceptance hereof assents and by which Agreement such Holder is bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates, the Class C Certificates and the Class R
Certificate are collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing in April 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
preceding the month in which such payment is made, if such last day is not a
Business Day, the Business Day immediately preceding such last day.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it appears on the Certificate Register; provided,
however, that the final distribution in retirement of the certificates will be
made only upon presentation and surrender of this Certificate at the office of
the Trustee or such other address designated in writing by the Trustee. On each
Distribution Date, a holder of this Certificate will receive such holder's
Percentage Interest of the amounts required to be distributed with respect to
the applicable Class of Certificates.

                                      A-35

<PAGE>

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee, will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-36

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: April 26, 2007                   LASALLE BANK NATIONAL ASSOCIATION, as
                                        Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    ---------------------------------
    Authorized Signatory

                                      A-37

<PAGE>

                             REVERSE OF CERTIFICATE

                MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                  Series 2007-2

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust Mortgage Loan
Asset-Backed Certificates, Series 2007-2, issued in one or more Classes of Class
A Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders,
to cure any ambiguity, to correct or supplement any provisions therein which may
be inconsistent with the other provisions therein, to ensure continuing
treatment of each REMIC included in the Trust Fund as a REMIC, or to make any
other provisions with respect to matters or questions arising under the
Agreement which are not materially inconsistent with the provisions of the
Agreement, provided that such action does not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer the Trustee, with the consent of the Holders of Certificates evidencing
in the aggregate not less than 66 2/3% of the Percentage Interests of each Class
of Certificates affected thereby, for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Agreement or
of modifying in any manner the rights of the Holders of Certificates of such
Class; provided, however, that no such amendment may (i) reduce in any manner
the amount of, or delay the timing of, payments received on Mortgage Loans which
are required to be distributed on any Certificate without the consent of the
Holder of such Certificate, (ii) adversely affect in any material respect the
interests of the Holders of any Class of Certificates in a manner other than as
described in clause (i), without the consent of the Holders of Certificates of
such Class evidencing 66 2/3% or more of the Voting Rights of such Class or
(iii) change the percentage specified in clause (ii) of the third paragraph of
Section 10.01 of the Agreement, without the consent of the Holders of all
Certificates of such Class then outstanding.

                                      A-38

<PAGE>

     The Class A (other than the Class R Certificates), Class M, and Class B
Certificates are issuable only in registerable form, in minimum denominations of
$25,000 in initial Certificate Principal Amount and in integral multiples of $1
in excess thereof, registered in the name of the nominee of the Clearing Agency,
which shall maintain such Certificates through its book-entry facilities. The
Class R Certificates are issuable in minimum denominations of $100 and shall be
maintained in physical, fully registered form. The Class P Certificates are
issuable in minimum denominations of 100% and shall be maintained in physical,
fully registered form. The Class C Certificates are issuable in minimum
denominations of 25% and shall be maintained in physical, fully registered form.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC"). The REMIC Regular
Interests will represent "regular interests" in one of the REMICs included in
the Trust Fund. The Class R Certificate will represent the sole class of
"residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Trustee of an Optional Termination; and (b) the later of (i) the maturity
or other liquidation (or any Advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and the disposition of all REO Property and
(ii) the distribution to Certificateholders of all amounts required to be
distributed to them pursuant to this Agreement, as applicable. In no event shall
the trusts created under the Agreement continue beyond the earlier of (i) the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof and (ii) the Latest Possible Maturity Date.

                                      A-39

<PAGE>

                                   ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________
(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________
________________________________________________________________________________
the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

____________________________________, Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated: ______________________________   NOTICE: The signature to this assignment
(Signature guaranty)                    must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
                                        alteration or enlargement or any change
                                        whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-40

<PAGE>

                           FORM OF CLASS R CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) A
"RESIDUAL INTEREST" IN ONE OR MORE "REAL ESTATE MORTGAGE INVESTMENT CONDUITS",
AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND (II) AN INTEREST IN
NOTIONAL PRINCIPAL CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC RESIDUAL INTERESTS REPRESENTED
HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE TRUSTEE AND THE DEPOSITOR WITH A REPRESENTATION THAT
SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN
SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO ANY FEDERAL, STATE,
LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO
THE FOREGOING PROVISIONS OF ERISA OR THE CODE, AND IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH
PLAN.

                               CLASS R CERTIFICATE

Number: 07-1-R-1                        Principal Balance: $100.00

Cut-off Date: April 1, 2007             Pass-Through Rate: Variable(4)

First Distribution Date: May 25, 2007   CUSIP: [____]

----------
(4)  Subject to a cap as described in the Agreement.

                                      A-41

<PAGE>

                MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                  Series 2007-2

evidencing an ownership interest in distributions allocable to the Class R
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as
nominee for Merrill Lynch Funding Corporation, is the registered owner of the
ownership interest (the "Ownership Interest") evidenced by this Certificate
(obtained by dividing the Original Denomination of this Certificate by the
aggregate Initial Certificate Balance of all Class R Certificates) in certain
distributions with respect to a pool of conventional, sub-prime mortgage loans
(the "Mortgage Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc.
(hereinafter called the "Depositor"), and certain other property held in trust
for the benefit of Certificateholders (collectively, the "Trust Fund"). The
Mortgage Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are
secured by first-lien mortgages on the Mortgaged Properties. The Trust Fund was
created pursuant to a pooling and servicing agreement (the "Agreement"), dated
as of April 1, 2007, among the Depositor, the Servicer and LaSalle Bank National
Association ("LB"), as as trustee (the "Trustee"), a summary of certain of the
pertinent provisions of which is set forth hereafter. To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust Mortgage Loan
Asset-Backed Certificates, Series 2007-2, Class R (the "Class R Certificate")
and is issued under and is subject to the terms, provisions and conditions of
the Agreement, to which Agreement the Holder of this Certificate by virtue of
the acceptance hereof assents and by which Agreement such Holder is bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing in April 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
preceding the month in which such payment is made.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it appears on the Certificate Register; provided,
however, that the final distribution in retirement of the certificates will be
made only upon presentation and surrender of this Certificate at the office of
the Trustee or such other address designated in writing by the Trustee. On each
Distribution Date, a holder of this Certificate will receive such holder's
Percentage Interest of the amounts required to be distributed with respect to
the applicable Class of Certificates.

                                      A-42

<PAGE>

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee, will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-43

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: April 26, 2007                   LASALLE BANK NATIONAL ASSOCIATION, as
                                        Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    ---------------------------------
    Authorized Signatory

                                      A-44

<PAGE>

                             REVERSE OF CERTIFICATE

                MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                  Series 2007-2

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust Mortgage Loan
Asset-Backed Certificates, Series 2007-2, issued in one or more Classes of Class
A Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders,
to cure any ambiguity, to correct or supplement any provisions therein which may
be inconsistent with the other provisions therein, to ensure continuing
treatment of each REMIC included in the Trust Fund as a REMIC, or to make any
other provisions with respect to matters or questions arising under the
Agreement which are not materially inconsistent with the provisions of the
Agreement, provided that such action does not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66 2/3% of the Percentage Interests of
each Class of Certificates affected thereby, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) adversely affect in any
material respect the interests of the Holders of

                                      A-45

<PAGE>

any Class of Certificates in a manner other than as described in clause (i),
without the consent of the Holders of Certificates of such Class evidencing 66
2/3% or more of the Voting Rights of such Class or (iii) change the percentage
specified in clause (ii) of the third paragraph of Section 10.01 of the
Agreement, without the consent of the Holders of all Certificates of such Class
then outstanding.

     The Class A (other than the Class R Certificates), Class M, and Class B
Certificates are issuable only in registerable form, in minimum denominations of
$25,000 in initial Certificate Principal Amount and in integral multiples of $1
in excess thereof, registered in the name of the nominee of the Clearing Agency,
which shall maintain such Certificates through its book-entry facilities. The
Class R Certificates are issuable in minimum denominations of $100 and shall be
maintained in physical, fully registered form. The Class P Certificates are
issuable in minimum denominations of 100% and shall be maintained in physical,
fully registered form. The Class C Certificates are issuable in minimum
denominations of 25% and shall be maintained in physical, fully registered form.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC"). The REMIC Regular
Interests will represent "regular interests" in one of the REMICs included in
the Trust Fund. The Class R Certificate will represent the sole class of
"residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Trustee of an Optional Termination; and (b) the later of (i) the maturity
or other liquidation (or any Advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and the disposition of all REO Property and
(ii) the distribution to Certificateholders of all amounts required to be
distributed to them pursuant to this Agreement, as applicable. In no event shall
the trusts created under the Agreement continue beyond the earlier of (i) the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof and (ii) the Latest Possible Maturity Date.

                                      A-46

<PAGE>

                              [FORM OF ASSIGNMENT]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________
(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

__________________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated: ______________________________   NOTICE: The signature to this assignment
(Signature guaranty)                    must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
                                        alteration or enlargement or any change
                                        whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-47
<PAGE>

                                    EXHIBIT B

                             MORTGAGE LOAN SCHEDULE

                            [INTENTIONALLY OMITTED]

                                       B-1

<PAGE>

                                    EXHIBIT C

                                   [RESERVED]

                                       C-1

<PAGE>

                                    EXHIBIT D

                          FORM OF TRUSTEE CERTIFICATION

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Home Loan Services, Inc.
150 Allegheny Center Mall
Pittsburgh, Pennsylvania 15212

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603

[NIMS INSURER, IF ANY]

Re:  Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
     Asset-Backed Certificates, Series 2007-2

Ladies and Gentlemen:

     In accordance with Section 2.02 of the Pooling and Servicing Agreement,
dated as of April 1, 2007, among Merrill Lynch Mortgage Investors, Inc., as
depositor, LaSalle Bank National Association, as trustee, Home Loan Services,
Inc., as servicer (the "Pooling and Servicing Agreement"), the undersigned, as
Trustee, hereby certifies that [, except as set forth in Schedule A hereto,] as
to each Mortgage Loan listed in the Mortgage Loan Schedule attached hereto
(other than any Mortgage Loan paid in full or listed on the attachment hereto)
it has reviewed the Mortgage File and the Mortgage Loan Schedule and has
determined that:

          (i) All documents in the Mortgage File required to be delivered to the
Trustee pursuant to Section 2.01 (A)-(B), (C) (if applicable), (D) and (E) and
the documents if actually received by it under Section 2.01(F) of the Pooling
and Servicing Agreement are in its possession;

          (ii) In connection with each Mortgage Loan or Assignment thereof as to
which documentary evidence of recording was not received on the Closing Date, it
has received evidence of such recording; and

          (iii) Such documents have been reviewed by it and appear regular on
their face and relate to such Mortgage Loan.

                                       D-1

<PAGE>

     The Trustee has made no independent examination of any documents contained
in each Mortgage File beyond confirming (i) that the Mortgage Loan number, the
name of the Mortgagor, the street address (excluding zip code), the mortgage
interest rate at origination, the gross margin (if applicable), the lifetime
rate cap (if applicable), the periodic rate cap (if applicable), the original
principal balance, the first payment due date and the original maturity date in
each Mortgage File conform to the respective Mortgage Loan number and name
listed on the Mortgage Loan Schedule and (ii) the existence in each Mortgage
File of each of the documents listed in subparagraphs (i)(A) through (E), as
applicable, inclusive, of Section 2.01 in the Agreement. The Trustee makes no
representations or warranties as to the validity, legality, recordability,
sufficiency, enforceability, due authorization or genuineness of any of the
documents contained in each Mortgage Loan or the collectability, insurability,
effectiveness, priority, perfection or suitability of any such Mortgage Loan.

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

LASALLE BANK NATIONAL ASSOCIATION,
as Trustee

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

                                       D-2

<PAGE>

                                   EXHIBIT E-1

                    FORM OF TRANSFEREE'S LETTER AND AFFIDAVIT

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Merrill Lynch First Franklin
           Mortgage Loan Trust, Series 2007-2

Ladies and Gentlemen:

     We propose to purchase Merrill Lynch First Franklin Mortgage Loan Trust,
Mortgage Loan Asset-Backed Certificates, Series 2007-2, Class R, described in
the Prospectus Supplement, dated April 25, 2007, and the Prospectus, dated March
22, 2007.

     1. We certify that (a) we are not a disqualified organization and (b) we
are not purchasing such Class R Certificate on behalf of a disqualified
organization; for this purpose the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code
of 1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code. We
understand that any breach by us of this certification may cause us to be liable
for an excise tax imposed upon transfers to disqualified organizations.

     2. We certify that (a) we have historically paid our debts as they became
due, (b) we intend, and believe that we will be able, to continue to pay our
debts as they become due in the future, (c) we understand that, as beneficial
owner of the Class R Certificate, we may incur tax liabilities in excess of any
cash flows generated by the Class R Certificate, and (d) we intend to pay any
taxes associated with holding the Class R Certificate as they become due and (e)
we will not cause income from the Class R Certificate to be attributable to a
foreign permanent establishment or fixed base (within the meaning of an
applicable income tax treaty) of ours or another U.S. taxpayer.

                                      E-1-1

<PAGE>

     3. We acknowledge that we will be the beneficial owner of the Class R
Certificate and:(1)

     ___________ The Class R Certificate will be registered in our name.

     ___________ The Class R Certificate  will be held in the name of our
                 nominee,  _________________, which is not a disqualified
                 organization.

     4. We certify that we are not an employee benefit plan subject to Title I
of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), a
plan subject to Section 4975 of the Code or a plan subject to federal, state,
local, non-U.S. or other law substantively similar to the foregoing provisions
of ERISA or the Code (each, a "Plan"), and are not directly or indirectly
acquiring the Class R Certificate on behalf of or with any assets of a Plan.

     5. We certify that (i) we are a U.S. person or (ii) we will hold the Class
R Certificate in connection with the conduct of a trade or business within the
United States and have furnished the transferor and the Trustee with a duly
completed and effective Internal Revenue Service Form W-8ECI or successor form
at the time and in the manner required by the Code; for this purpose the term
"U.S. person" means a citizen or resident of the United States, a corporation,
or partnership (unless, in the case of a partnership, Treasury regulations are
adopted that provide otherwise) created or organized in or under the laws of the
United States, any State thereof or the District of Columbia, including an
entity treated as a corporation or partnership for federal income tax purposes,
an estate whose income is subject to United States federal income tax regardless
of the source of its income, or a trust if a court within the United States is
able to exercise primary supervision over the administration of the trust and
one or more such U.S. persons have the authority to control all substantial
decisions of the trust (or, to the extent provided in applicable Treasury
regulations, certain trusts in existence on August 20, 1996 which are eligible
to elect to be treated as U.S. Persons). We agree that any breach by us of this
certification shall render the transfer of any interest in the Class R
Certificate to us absolutely null and void and shall cause no rights in the
Class R Certificate to vest in us.

     6. We agree that in the event that at some future time we wish to transfer
any interest in the Class R Certificate, we will transfer such interest in the
Class R Certificate only (a) to a transferee that (i) is not a disqualified
organization and is not purchasing such interest in the Class R Certificate on
behalf of a disqualified organization, (ii) is a U.S. person or will hold the
Class R Certificate in connection with the conduct of a trade or business within
the United States and will furnish us and the Trustee with a duly completed and
effective Internal Revenue Service Form W-8ECI or successor form at the time and
in the manner required by the Code and (iii) has delivered to the Trustee a
letter in the form of this letter (including the affidavit appended hereto) and,
we will provide the Trustee a written statement substantially in the form of
Exhibit E-2 to the Pooling and Servicing Agreement.

     7. We hereby designate _______________________ as our fiduciary to act as
the tax matters person for each of the REMICs provided for in the Pooling and
Servicing Agreement.

Very truly yours,

[PURCHASER]

----------
(1)  Check appropriate box and if necessary fill in the name of the Transferee's
     nominee.

                                      E-1-2

<PAGE>

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

Accepted as of __________ __, 200__

MERRILL LYNCH MORTGAGE INVESTORS, INC.

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

                                      E-1-3

<PAGE>

                                        APPENDIX A

                                        Affidavit pursuant to (i) Section
                                        860E(e)(4) of the Internal Revenue Code
                                        of 1986, as amended, and (ii) certain
                                        provisions of the Pooling and Servicing
                                        Agreement

Under penalties of perjury, the undersigned declares that the following is true:

     1. He or she is an officer of _________________________ (the "Transferee"),

     2. the Transferee's Employer Identification number is __________,

     3. the Transferee is not a "disqualified organization" (as defined below),
has no plan or intention of becoming a disqualified organization, and is not
acquiring any of its interest in the Merrill Lynch First Franklin Mortgage Loan
Trust, Mortgage Loan Asset-Backed Certificates, Series 2007-2, Class R
Certificate on behalf of a disqualified organization or any other entity,

     4. unless Merrill Lynch Mortgage Investors, Inc.("MLMI") has consented to
the transfer to the Transferee by executing the form of Consent affixed as
Appendix B to the Transferee's Letter to which this Certificate is affixed as
Appendix A, the Transferee is a "U.S. person" (as defined below),

     5. that no purpose of the transfer is to avoid or impede the assessment or
collection of tax,

     6. the Transferee has historically paid its debts as they became due,

     7. the Transferee intends, and believes that it will be able, to continue
to pay its debts as they become due in the future,

     8. the Transferee understands that, as beneficial owner of the Class R
Certificate, it may incur tax liabilities in excess of any cash flows generated
by the Class R Certificate,

     9. the Transferee intends to pay any taxes associated with holding the
Class R Certificate as they become due,

     10. the Transferee consents to any amendment of the Pooling and Servicing
Agreement that shall be deemed necessary by Merrill Lynch Mortgage Investors,
Inc. (upon advice of counsel) to constitute a reasonable arrangement to ensure
that the Class R Certificate will not be owned directly or indirectly by a
disqualified organization, and

     11. IF BRACKETED, THE FOLLOWING CERTIFICATIONS ARE INAPPLICABLE [the
transfer is not a direct or indirect transfer of the Class R Certificate to a
foreign permanent establishment or fixed base (within the meaning of an
applicable income tax treaty) of the Transferee, and as to each of the residual
interests represented by the Class R Certificate, the present value of the
anticipated tax liabilities associated with holding such residual interest does
not exceed the sum of:

     A. the present value of any consideration given to the Transferee to
acquire such residual interest;

                                      E-1-4

<PAGE>

     B. the present value of the expected future distributions on such residual
interest; and

     C. the present value of the anticipated tax savings associated with holding
such residual interest as the related REMIC generates losses.

For purposes of this declaration, (i) the Transferee is assumed to pay tax at a
rate equal to the highest rate of tax specified in Section 11(b)(1) of the Code,
but the tax rate specified in Section 55(b)(1)(B) of the Code may be used in
lieu of the highest rate specified in Section 11(b)(1) of the Code if the
Transferee has been subject to the alternative minimum tax under Section 55 of
the Code in the preceding two years and will compute its taxable income in the
current taxable year using the alternative minimum tax rate, and (ii) present
values are computed using a discount rate equal to the Federal short-term rate
prescribed by Section 1274(d) of the Code for the month of the transfer and the
compounding period used by the Transferee;]

[11. (A) at the time of the transfer, and at the close of each of the
     Transferee's two fiscal years preceding the Transferee's fiscal year of
     transfer, the Transferee's gross assets for financial reporting purposes
     exceed $100 million and its net assets for financial reporting purposes
     exceed $10 million; and

     (B)  the Transferee is an eligible corporation as defined in Treasury
          regulations Section 1.860E-1(c)(6)(i) and has agreed in writing that
          any subsequent transfer of the Class R Certificate will be to another
          eligible corporation in a transaction that satisfies Treasury
          regulation Sections 1.860E-1(c)(4)(i), 1.860E-1(c)(4)(ii),
          1.860E-1(c)(4)(iii) and 1.860E-1(c)(5) and such transfer will not be a
          direct or indirect transfer to a foreign permanent establishment
          (within the meaning of an applicable income tax treaty) of a domestic
          corporation.

For purposes of this declaration, the gross and net assets of the Transferee do
not include any obligation of any related person as defined in Treasury
regulation Section 1.860E-1(c)(6)(ii) or any other asset if a principal purpose
for holding or acquiring the other asset is to permit the Transferee to make
this declaration or to satisfy the requirements of Treasury regulation Section
1.860E-1(c)(5)(i).]

12. The Transferee will not cause income from the Class R Certificate to be
attributable to a foreign permanent establishment or fixed base (within the
meaning of an applicable income tax treaty) of the Transferee or another U.S.
taxpayer.

For purpose of this affidavit, the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code
of 1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code and the term
"U.S. Person" means a citizen or resident of the United States, a corporation or
partnership (unless, in the case of a partnership, Treasury regulations are
adopted that provide otherwise) created or organized in or under the laws of the
United States, any state thereof or the District of Columbia, including an
entity treated as a corporation or partnership for federal income tax purposes,
an estate whose income is subject to Unites States federal income tax regardless
of its source, or a trust if a court within the United States is able to
exercise primary

                                      E-1-5

<PAGE>

supervision over the administration of such trust, and one or more such U.S.
Persons have the authority to control all substantial decisions of such trust,
(or, to the extent provided in applicable Treasury regulations, certain trusts
in existence on August 20, 1996 which are eligible to elect to be treated as
U.S. Persons).

By:
    ---------------------------------

Address of Investor for receipt of distribution:
                                                 -------------------------------

Address of Investor for receipt of tax information:
                                                    ----------------------------
(Corporate Seal)

Attest:
        -----------------------------

-------------------------------------, Secretary

                                      E-1-6

<PAGE>

Personally appeared before me the above-named ______________, known or proved to
me to be the same person who executed the foregoing instrument and to be the
_______ of the Investor, and acknowledged to me that he executed the same as his
free act and deed and the free act and deed of the Investor.

Subscribed and sworn before me this day of ________, 200_.

Notary Public

County of
State of
My commission expires the ________ day of ______________

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

Dated:
       -----------

                                      E-1-7

<PAGE>

                                   EXHIBIT E-2

                         FORM OF TRANSFEROR'S AFFIDAVIT

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Merrill Lynch First Franklin
Mortgage Loan Trust, Series 2007-2

Re:  Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
     Asset-Backed Certificates, Series 2007-2

     _______________________ (the "Transferor") has reviewed the attached
affidavit of _____________________________ (the "Transferee"), and has no actual
knowledge that such affidavit is not true, and has no reason to believe that the
Transferee has the intention to impede the assessment or collection of any
federal, state or local taxes legally required to be paid with respect to the
Class R Certificate referred to in the attached affidavit. In addition, the
Transferor has conducted a reasonable investigation at the time of the transfer
and found that the Transferee had historically paid its debts as they came due
and found no significant evidence to indicate that the Transferee will not
continue to pay its debts as they become due.

                                        Very truly yours,

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

                                      E-2-1

<PAGE>

                                    EXHIBIT F

                         FORM OF TRANSFEROR CERTIFICATE

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Merrill Lynch First Franklin
Mortgage Loan Trust, Series 2007-2

RE:  Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
     Asset-Backed Certificates, Series 2007-2

Ladies and Gentlemen:

     In connection with our disposition of the Class [____] Certificate, we
certify that (a) we understand that the Certificates have not been registered
under the Securities Act of 1933, as amended (the "Act"), and are being disposed
by us in a transaction that is exempt from the registration requirements of the
Act and (b) we have not offered or sold any Certificates to, or solicited offers
to buy any Certificates from, any person, or otherwise approached or negotiated
with any person with respect thereto, in a manner that would be deemed, or taken
any other action that would result in, a violation of Section 5 of the Act. All
capitalized terms used herein but not defined herein shall have the meanings
assigned to them in the Pooling and Servicing Agreement, dated as of April 1,
2007, among Merrill Lynch Mortgage Investors, Inc., as depositor, LaSalle Bank
National Association, as trustee, and Home Loan Services, Inc., as servicer.

Very truly yours,

Name of Transferor

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

                                       F-1

<PAGE>

                                    EXHIBIT G

                            FORM OF INVESTMENT LETTER
                              (ACCREDITED INVESTOR)

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Merrill Lynch First Franklin
           Mortgage Loan Trust, Series 2007-2

     Re:  Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
          Asset-Backed Certificates, Series 2007-2

Ladies and Gentlemen:

     ______________ (the "Purchaser") intends to purchase from ________________
(the "Transferor") $_______ by original principal balance (the "Transferred
Certificates") of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2, Class [____] (the
"Certificates"), issued pursuant to a Pooling and Servicing Agreement, dated as
of April 1, 2007 (the "Pooling and Servicing Agreement"), among Merrill Lynch
Mortgage Investors, Inc., as depositor (the "Depositor"), LaSalle Bank National
Association, as trustee (the "Trustee"), Home Loan Services, Inc., as servicer
(the "Servicer"). [The Purchaser intends to register the Transferred Certificate
in the name of ____________________, as nominee for _________________.] All
terms used and not otherwise defined herein shall have the meanings set forth in
the Pooling and Servicing Agreement.

     For good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Purchaser certifies, represents and warrants to, and
covenants with, the Depositor and the Trustee that:

     1. The Purchaser understands that (a) the Certificates have not been
registered or qualified under the Securities Act of 1933, as amended (the
"Securities Act"), or the securities laws of any state, (b) neither the
Depositor nor the Trustee is required, and neither of them intends, to so
register or qualify the Certificates, (c) the Certificates cannot be resold
unless (i) they are registered and qualified under the Securities Act and the
applicable state securities laws or (ii) an exemption from registration and
qualification is available and (d) the Pooling and Servicing Agreement contains
restrictions regarding the transfer of the Certificates.

     2. All Certificates other than ERISA Restricted Certificates and Class R
Certificates will bear a legend to the following effect:

     UNTIL THE TERMINATION OF THE SWAP AGREEMENT, EACH TRANSFEREE OF THIS
CERTIFICATE SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A DEFINITIVE
CERTIFICATE, SHALL REPRESENT) TO THE TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT,

                                       G-1

<PAGE>

AND IS NOT ACTING FOR, ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE BENEFIT
PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR ANY PLAN SUBJECT TO SECTION 4975
OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), OR (B) THE
TRANSFEREE'S ACQUISITION AND HOLDING OF THIS CERTIFICATE WILL NOT CONSTITUTE OR
RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION
4975 OF THE CODE.

     3. The Certificates (other than the Class R Certificate) will bear a legend
to the following effect:

     THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
     AS AMENDED (THE "ACT"), THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE
     "1940 ACT") OR ANY STATE SECURITIES OR "BLUE SKY" LAWS, AND MAY NOT,
     DIRECTLY OR INDIRECTLY, BE SOLD OR OTHERWISE TRANSFERRED, OR OFFERED FOR
     SALE, UNLESS SUCH TRANSFER IS NOT SUBJECT TO REGISTRATION UNDER THE ACT,
     THE 1940 ACT AND ANY APPLICABLE STATE SECURITIES LAWS AND SUCH TRANSFER
     ALSO COMPLIES WITH THE OTHER PROVISIONS OF SECTION 5.02 OF THE POOLING AND
     SERVICING AGREEMENT. IF THE CERTIFICATE IS A DEFINITIVE CERTIFICATE, NO
     TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE TRUSTEE SHALL HAVE
     RECEIVED, IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE (A) AN
     INVESTMENT LETTER FROM THE PROSPECTIVE INVESTOR; AND (B) REPRESENTATIONS
     FROM THE TRANSFEROR REGARDING THE OFFERING AND SALE OF THE CERTIFICATES.

     4. The ERISA Restricted Certificates will bear a legend to the following
effect:

NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE TRUSTEE HAS RECEIVED
(A) A REPRESENTATION THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED ("ERISA"), A PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE
OF 1986, AS AMENDED (THE "CODE") OR A PLAN SUBJECT ANY TO STATE, LOCAL, FEDERAL,
NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA
OR THE CODE ("SIMILAR LAW") (COLLECTIVELY, A "PLAN"), AND IS NOT DIRECTLY OR
INDIRECTLY ACQUIRING THIS CERTIFICATE BY, ON BEHALF OF, OR WITH ANY ASSETS OF
ANY SUCH PLAN, (B) IF THE CERTIFICATE HAS BEEN THE SUBJECT OF AN
ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION THAT SUCH TRANSFEREE IS AN
INSURANCE COMPANY THAT IS ACQUIRING THE CERTIFICATE WITH ASSETS OF AN "INSURANCE
COMPANY GENERAL ACCOUNT" AS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION
CLASS EXEMPTION ("PTCE") 95-60 AND THE ACQUISITION AND HOLDING OF THE
CERTIFICATE ARE COVERED AND EXEMPT UNDER SECTIONS I AND III OF PTCE 95-60, OR
(C) SOLELY IN THE EVENT THE CERTIFICATE IS A DEFINITIVE CERTIFICATE, AN OPINION
OF COUNSEL SATISFACTORY TO THE TRUSTEE, AND UPON WHICH THE TRUSTEE AND THE NIMS
INSURER SHALL BE ENTITLED TO RELY, TO THE EFFECT THAT THE ACQUISITION AND
HOLDING OF SUCH CERTIFICATE BY THE PROSPECTIVE TRANSFEREE WILL NOT CONSTITUTE OR
RESULT IN A NONEXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION
4975 OF THE CODE OR A VIOLATION OF SIMILAR LAW AND WILL

                                       G-2

<PAGE>

NOT SUBJECT THE TRUSTEE, THE SERVICER OR THE DEPOSITOR TO ANY OBLIGATION IN
ADDITION TO THOSE UNDERTAKEN BY SUCH ENTITIES IN THE POOLING AND SERVICING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE
SERVICER, THE NIMS INSURER OR THE DEPOSITOR. IF THE CERTIFICATE IS NOT A
DEFINITIVE CERTIFICATE, THE TRANSFEREE IS DEEMED TO HAVE MADE THE REPRESENTATION
IN (A) OR (B) ABOVE.

     5. The Class R Certificate will bear a legend to the following effect:

     THIS CLASS R CERTIFICATE MAY NOT BE TRANSFERRED, EXCEPT IN ACCORDANCE WITH
     SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT AND THE HOLDER OF THIS
     CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE
     TRANSFER SUCH CERTIFICATE ONLY IN ACCORDANCE WITH SECTION 5.02 OF THE
     POOLING AND SERVICING AGREEMENT. NO TRANSFER OF THIS CERTIFICATE SHALL BE
     MADE UNLESS THE TRUSTEE SHALL HAVE RECEIVED, IN FORM AND SUBSTANCE
     SATISFACTORY TO THE TRUSTEE (A) A TRANSFER AFFIDAVIT FROM THE PROSPECTIVE
     INVESTOR; AND (B) AN AFFIDAVIT FROM THE TRANSFEROR REGARDING THE OFFERING
     AND SALE OF THE CERTIFICATE.

     NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
     TRANSFEREE PROVIDES THE TRUSTEE WITH A REPRESENTATION THAT SUCH TRANSFEREE
     IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE
     RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN
     SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO STATE, LOCAL,
     FEDERAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING
     PROVISIONS OF ERISA OR THE CODE ("SIMILAR LAW"), AND IS NOT DIRECTLY OR
     INDIRECTLY ACQUIRING THIS CERTIFICATE BY, ON BEHALF OF, OR WITH ANY ASSETS
     OF ANY SUCH PLAN.

     6. The Purchaser is acquiring the Transferred Certificates for its own
account [FOR INVESTMENT ONLY] * and not with a view to or for sale or other
transfer in connection with any distribution of the Transferred Certificates in
any manner that would violate the Securities Act or any applicable state
securities laws, subject, nevertheless, to the understanding that disposition of
the Purchaser's property shall at all times be and remain within its control.

     7. The Purchaser (a) is a substantial, sophisticated institutional investor
having such knowledge and experience in financial and business matters, and in
particular in such matters related to securities similar to the Certificates,
such that it is capable of evaluating the merits and risks of investment in the
Certificates, (b) is able to bear the economic risks of such an investment and
(c) is an "accredited investor" within the meaning of Rule 501(a) promulgated
pursuant to the Securities Act.

     8. The Purchaser will not nor has it authorized nor will it authorize any
person to (a) offer, pledge, sell, dispose of or otherwise transfer any
Certificate, any interest in any Certificate or any other similar security to
any person in any manner, (b) solicit any offer to buy or to accept a pledge,
disposition

----------
*    Not required of a broker/dealer purchaser.

                                       G-3

<PAGE>

or other transfer of any Certificate, any interest in any Certificate or any
other similar security from any person in any manner, (c) otherwise approach or
negotiate with respect to any Certificate, any interest in any Certificate or
any other similar security with any person in any manner, (d) make any general
solicitation by means of general advertising or in any other manner, or (e) take
any other action, that would constitute a distribution of any Certificate under
the Securities Act or the Investment Company Act of 1940, as amended (the "1940
Act"), that would render the disposition of any Certificate a violation of
Section 5 of the Securities Act or any state securities law, or that would
require registration or qualification pursuant thereto. Neither the Purchaser
nor anyone acting on its behalf has offered the Certificates for sale or made
any general solicitation by means of general advertising or in any other manner
with respect to the Certificates. The Purchaser will not sell or otherwise
transfer any of the Certificates, except in compliance with the provisions of
the Pooling and Servicing Agreement.

     9. Either (i) the Purchaser of a Certificate that is neither an ERISA
Restricted Certificate nor a Class R Certificate is not, and is not acting for,
on behalf of or with any assets of, an employee benefit plan or other
arrangement subject to Title I of the Employee Retirement Income Security Act of
1974, as amended ("ERISA") or plan subject to Section 4975 of the Code, or (ii)
until the termination of the Swap Agreement, such Purchaser's acquisition and
holding of such Certificates will not constitute or result in a non-exempt
prohibited transaction under Title I of ERISA or Section 4975 of the Code.

     10. The Purchaser of an ERISA Restricted Certificate (A) is not an employee
benefit plan subject to Title I of ERISA, a plan subject to Section 4975 of the
Code, a plan subject to any state, local, federal, non-U.S. or other law
substantively similar to the foregoing provisions of ERISA or the Code ("Similar
Law") and is not directly or indirectly acquiring such Certificates by, on
behalf of, or with any assets of any such plan, or (B) if the Certificate has
been the subject of an ERISA-Qualifying Underwriting, is an insurance company
that is acquiring the Certificate with assets of an "insurance company general
account," as defined in Section V(e) of Prohibited Transaction Class Exemption
("PTCE") 95-60, and the acquisition and holding of the Certificate are covered
and exempt under Sections I and III of PTCE 95-60, or (C) solely in the event
the Certificate is a Definitive Certificate, herewith delivers an Opinion of
Counsel satisfactory to the Trustee, and upon which the Trustee and the NIMs
Insurer shall be entitled to rely, to the effect that the acquisition and
holding of the Certificate will not constitute or result in a nonexempt
prohibited transaction under Title I of ERISA or Section 4975 of the Code, or a
violation of Similar Law, and will not subject the Trustee, the Servicer, the
NIMs Insurer or the Depositor to any obligation in addition to those expressly
undertaken in the Pooling and Servicing Agreement, which Opinion of Counsel
shall not be an expense of the Trustee, the Servicer or the Depositor.

     11. The Purchaser of a Class R Certificate is not an employee benefit plan
subject to Title I of ERISA, a plan subject to Section 4975 of the Code, a plan
subject to any state, local, federal, non-U.S. or other law substantively
similar to the foregoing provisions of ERISA or the Code ("Similar Law"), or a
Person directly or indirectly acquiring such Certificate by, on behalf of, or
with any assets of any such plan.

     12. Prior to the sale or transfer by the Purchaser of any of the
Certificates, the Purchaser will obtain from any subsequent purchaser
substantially the same certifications, representations, warranties and covenants
contained in the foregoing paragraphs and in this letter or a letter
substantially in the form of Exhibit H to the Pooling and Servicing Agreement.

                                       G-4

<PAGE>

     13. The Purchaser agrees to indemnify the Trustee, the Servicer and the
Depositor against any liability that may result from any misrepresentation made
herein.

                                        Very truly yours,

                                        [PURCHASER]

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

                                       G-5

<PAGE>

                                    EXHIBIT H

                       FORM OF RULE 144A INVESTMENT LETTER
                         (QUALIFIED INSTITUTIONAL BUYER)

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Merrill Lynch First Franklin
           Mortgage Loan Trust, Series 2007-2

     Re:  Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
          Asset-Backed Certificates, Series 2007-2

Ladies and Gentlemen:

     ______________ (the "Purchaser") intends to purchase from ________________
(the "Transferor") $_______ by original principal balance (the "Transferred
Certificates") of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2, Class [____] (the
"Certificates"), issued pursuant to a Pooling and Servicing Agreement, dated as
of April 1, 2007 (the "Pooling and Servicing Agreement"), among Merrill Lynch
Mortgage Investors, Inc., as depositor (the "Depositor"), LaSalle Bank National
Association, as trustee (the "Trustee"), Home Loan Services, Inc., as servicer
(the "Servicer"). [THE PURCHASER INTENDS TO REGISTER THE TRANSFERRED CERTIFICATE
IN THE NAME OF ____________________, AS NOMINEE FOR _________________.] All
terms used and not otherwise defined herein shall have the meanings set forth in
the Pooling and Servicing Agreement.

     For good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Purchaser certifies, represents and warrants to, and
covenants with, the Depositor and the Trustee that:

     In connection with our acquisition of the above Transferred Certificates we
certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we have
such knowledge and experience in financial and business matters that we are
capable of evaluating the merits and risks of investments in the Certificates,
(c) we have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Transferred Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Transferred Certificates, (d) solely in the case of a
Certificate other than an ERISA Restricted Certificate or Class R Certificate,
either (i) we are not, and are not acquiring the Certificate for, on behalf of
or with any assets of, any employee benefit plan or other arrangement subject to
Title I of ERISA or any plan subject to Section 4975 of the Code, or (ii)

                                       H-1

<PAGE>

until the termination of the Swap Agreement, our acquisition and holding of the
Certificate will not constitute or result in a non-exempt prohibited transaction
under Title I of ERISA or Section 4975 of the Code, (e)solely with respect to
ERISA Restricted Certificates, (A) we are not an employee benefit plan subject
to Title I of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), a plan subject to Section 4975 of the Internal Revenue Code of 1986,
as amended (the "Code"), a plan subject to any state, local, federal, non-U.S.
or other law substantively similar to the foregoing provisions of ERISA or the
Code ("Similar Law"), or Persons directly or indirectly acting on behalf of or
using any assets of any such plan, or (B), if the Certificate has been the
subject of an ERISA-Qualifying Underwriting, we are an insurance company that is
acquiring the Certificate with assets of an "insurance company general account,"
as defined in Section V(e) of Prohibited Transaction Class Exemption ("PTCE")
95-60, and the acquisition and holding of the Certificate are covered and exempt
under Sections I and III of PTCE 95-60, or (C) solely in the event the
Certificate is a Definitive Certificate, we will herewith deliver an Opinion of
Counsel satisfactory to the Trustee, and upon which the Trustee and the NIMs
Insrurer shall be entitled to rely, to the effect that the acquisition and
holding of the Certificate will not constitute or result in a nonexempt
prohibited transaction under Title I of ERISA or Section 4975 of the Code, or a
violation of Similar Law, and will not subject the Trustee, the Servicer, the
NIMs Insurer or the Depositor to any obligation in addition to those expressly
undertaken in the Pooling and Servicing Agreement, which Opinion of Counsel
shall not be an expense of the Trustee, the Servicer or the Depositor, (f) we
have not, nor has anyone acting on our behalf offered, transferred, pledged,
sold or otherwise disposed of the Certificates, any interest in the Certificates
or any other similar security to, or solicited any offer to buy or accept a
transfer, pledge or other disposition of the Certificates, any interest in the
Certificates or any other similar security from, or otherwise approached or
negotiated with respect to the Certificates, any interest in the Certificates or
any other similar security with, any person in any manner, or made any general
solicitation by means of general advertising or in any other manner, or taken
any other action, that would constitute a distribution of the Certificates under
the Securities Act or that would render the disposition of the Certificates a
violation of Section 5 of the Securities Act or require registration pursuant
thereto, nor will act, nor has authorized or will authorize any person to act,
in such manner with respect to the Certificates, and (g) we are a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act and have completed one of the forms of certification to that effect attached
hereto as Annex 1 or Annex 2. We are aware that the sale of the Transferred
Certificates to us is being made in reliance on Rule 144A. We are acquiring the
Transferred Certificates for our own account or for resale pursuant to Rule 144A
and further understand that such Certificates may be resold, pledged or
transferred only (i) to a person reasonably believed by us, based upon
certifications of such purchaser or information we have in our possession, to be
a qualified institutional buyer that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A, or (ii)
pursuant to another exemption from registration under the Securities Act.

                                       H-2

<PAGE>

     We agree to indemnify the Trustee, the Servicer and the Depositor against
any liability that may result from any misrepresentation made herein.

Very truly yours,

[PURCHASER]

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

                                       H-3

<PAGE>

                                                                         ANNEX 1

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [FOR TRANSFEREES OTHER THAN REGISTERED INVESTMENT COMPANIES]

     The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

     1. As indicated below, the undersigned is the President, Chief Financial
Officer, Senior Vice President or other executive officer of the Buyer.

     2. In connection with the purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned and/or
invested on a discretionary basis $____________ * in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

          _______   Corporation, etc. The Buyer is a corporation (other than a
                    bank, savings and loan association or similar institution),
                    Massachusetts or similar business trust, partnership, or
                    charitable organization described in Section 501(c)(3) of
                    the Internal Revenue Code of 1986, as amended.

          _______   Bank. The Buyer (a) is a national bank or banking
                    institution organized under the laws of any State, territory
                    or the District of Columbia, the business of which is
                    substantially confined to banking and is supervised by
                    Federal, State or territorial banking commission or similar
                    official or is a foreign bank or equivalent institution, and
                    (b) has an audited net worth of at least $25,000,000 as
                    demonstrated in its latest annual financial statements, a
                    copy of which is attached hereto.

          _______   Savings and Loan. The Buyer (a) is a savings and loan
                    association, building and loan association, cooperative
                    bank, homestead association or similar institution, which is
                    supervised and examined by a State or Federal authority
                    having supervision over such institution or is a foreign
                    savings and loan association or equivalent institution and
                    (b) has an audited net worth of at least $25,000,000 as
                    demonstrated in its latest annual financial statements, a
                    copy of which is attached hereto.

          _______   Broker-dealer. The Buyer is a dealer registered pursuant to
                    Section 15 of

----------
*    Buyer must own and/or invest on a discretionary basis at least $100,000,000
     in securities unless Buyer is a dealer, and, in that case, Buyer must own
     and/or invest on a discretionary basis at least $10,000,000 in securities.

                                       H-4

<PAGE>

                    the Securities Exchange Act of 1934, as amended.

          _______   Insurance Company. The Buyer is an insurance company whose
                    primary and predominant business activity is the writing of
                    insurance or the reinsuring of risks underwritten by
                    insurance companies and which is subject to supervision by
                    the insurance commissioner or a similar official or agency
                    of the State, territory or the District of Columbia.

          _______   State or Local Plan. The Buyer is a plan established and
                    maintained by a State, its political subdivisions, or any
                    agency or instrumentality of the State or its political
                    subdivisions, for the benefit of its employees.

          _______   ERISA Plan. The Buyer is an employee benefit plan subject to
                    Title I of the Employee Retirement Income Security Act of
                    1974, as amended.

          _______   Investment Advisor. The Buyer is an investment advisor
                    registered under the Investment Advisors Act of 1940, as
                    amended.

          _______   Small Business Investment Company. Buyer is a small business
                    investment company licensed by the U.S. Small Business
                    Administration under Section 301(c) or (d) of the Small
                    Business Investment Act of 1958, as amended.

          _______   Business Development Company. Buyer is a business
                    development company as defined in Section 202(a)(22) of the
                    Investment Advisors Act of 1940, as amended.

     3. The term "securities" as used for purposes of the calculation of the
dollar amount in paragraph 2 excludes: (i) securities of issuers that are
affiliated with the Buyer, (ii) securities that are part of an unsold allotment
to or subscription by the Buyer, if the Buyer is a dealer, (iii) securities
issued or guaranteed by the U.S. or any instrumentality thereof, (iv) bank
deposit notes and certificates of deposit, (v) loan participations, (vi)
repurchase agreements, (vii) securities owned but subject to a repurchase
agreement and (viii) currency, interest rate and commodity swaps.

     4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

                                       H-5

<PAGE>

     5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

     6. Until the date of purchase of the Rule 144A Securities, the Buyer will
notify each of the parties to which this certification is made of any changes in
the information and conclusions herein. Until such notice is given, the Buyer's
purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan as provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

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

                                       H-6
<PAGE>

                                                                         ANNEX 2

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [FOR TRANSFEREES THAT ARE REGISTERED INVESTMENT COMPANIES]

     The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

     1. As indicated below, the undersigned is the President, Chief Financial
Officer or Senior Vice President of the Buyer or, if the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A"), because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

     2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

     _______   The Buyer owned $___________ in securities (other than the
               excluded securities referred to below) as of the end of the
               Buyer's most recent fiscal year (such amount being calculated in
               accordance with Rule 144A).

     _______   The Buyer is part of a Family of Investment Companies which owned
               in the aggregate $__________ in securities (other than the
               excluded securities referred to below) as of the end of the
               Buyer's most recent fiscal year (such amount being calculated in
               accordance with Rule 144A).

     3. The term "Family of Investment Companies" as used herein means two or
more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

     4. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer or are part of the Buyer's Family of
Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities owned but
subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.

                                      H-7

<PAGE>

     5. The Buyer is familiar with Rule 144A and understands that the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates are relying and will continue to rely on the statements made herein
because one or more sales to the Buyer will be in reliance on Rule 144A. In
addition, the Buyer will only purchase for the Buyer's own account.

     6. Until the date of purchase of the Certificates, the undersigned will
notify the parties listed in the Rule 144A Transferee Certificate to which this
certification relates of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

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

                                        IF AN ADVISER:

                                        Print Name of Buyer

                                        Date:
                                              ----------------------------------

                                      H-8

<PAGE>

                                    EXHIBIT I

                           FORM OF REQUEST FOR RELEASE

                                     [DATE]

To:   LaSalle Bank National Association
      135 South LaSalle Street
      Suite 1511
      Chicago, Illinois 60603
      Attention: Account Manager--FFMER 2007-2

Re: Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan Asset-Backed
    Certificates, Series 2007-2

     In connection with the administration of the Mortgage Loans held by you, as
Trustee, pursuant to the Pooling and Servicing Agreement, dated as of April 1,
2007, among Merrill Lynch Mortgage Investors, Inc., as depositor, LaSalle Bank
National Association, as Trustee, Home Loan Services, Inc., as servicer (the
"Pooling and Servicing Agreement"), we request the release, and hereby
acknowledge receipt, of the Mortgage File for the Mortgage Loan described below,
for the reason indicated.

Mortgage Loan Number:

Mortgagor Name, Address & Zip Code:

Reason for Requesting Documents (check one):

     _______   1.   Mortgage Paid in Full

     _______   2.   Foreclosure

     _______   3.   Substitution

     _______   4.   Other Liquidation (Repurchases, etc.)

     _______   5.   Nonliquidation

     _______   6.   Other Reason:

Address to which the Trustee should deliver the Mortgage File:

                                        By:
                                            ------------------------------------
                                                   (authorized signer)
                                        Address:
                                                 -------------------------------
                                        Date:
                                              ----------------------------------

                                       I-1

<PAGE>

If box 1 or 2 above is checked, and if all or part of the Mortgage File was
previously released to us, please release to us our previous receipt on file
with you, as well as any additional documents in your possession relating to the
above specified Mortgage Loan.

If box 3, 4, 5 or 6 above is checked, upon our return of all of the above
documents to you as Trustee, please acknowledge your receipt by signing in the
space indicated below, and returning this form.

Please acknowledge the execution of the above request by your signature and date
below:

LASALLE BANK NATIONAL ASSOCIATION as Trustee

By:
    ---------------------------------
    Signature                           Date
                                             -----------------------------------

Documents returned to Trustee:

By:
    ---------------------------------
    Signature                           Date
                                             -----------------------------------

                                      I-2

<PAGE>

                                    EXHIBIT J

                                   [RESERVED]

                                       J-1

<PAGE>

                                    EXHIBIT K

                    FORM OF BACK-UP CERTIFICATION OF TRUSTEE

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Home Loan Services, Inc.
150 Allegheny Center Mall
Pittsburgh, Pennsylvania 15212

Re: Pooling and Servicing Agreement (the "Agreement"), dated as of April 1,
    2007, among Merrill Lynch Mortgage Investors, Inc., as depositor, Home Loan
    Services, Inc., as servicer, and LaSalle Bank National Association, as
    trustee, relating to Merrill Lynch First Franklin Mortgage Loan Trust,
    Mortgage Loan Asset-Backed Certificates, Series 2007-2

     The Trustee hereby certifies to the Depositor, the Servicer and their
officers, directors and affiliates, and with the knowledge and intent that they
will rely upon this certification, that:

     (1) I have reviewed the annual report on Form 10-K for the fiscal year
[2007] (the "Annual Report"), and all reports on Form 8-K (if any) and on Form
10-D required to be filed in respect of the period covered by the Annual Report
(collectively with the Annual Report, the "Reports"), of the Issuing Entity;

     (2) To the best of my knowledge, and assuming the accuracy of the
statements required to be made or data required to be delivered by the Servicer
and Depositor (to the extent that such statements or data were received by the
Trustee and are relevant to the statements made by the Trustee in this Back-Up
Certification), the information in the Reports relating to the trustee, taken as
a whole, does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect
to the period covered by the Annual Report;

     (3) To the best of my knowledge, and assuming the accuracy of the
statements required to be made or data required to be delivered by the Servicer
and Depositor (to the extent that such statements or data were received by the
Trustee and are relevant to the statements made by the Trustee in this Back-Up
Certification), the distribution and any other information required to be
provided by the Trustee (other than information provided by or on behalf of the
Servicer, the Depositor or other third party) to the Depositor and each Servicer
under the Pooling and Servicing Agreement for inclusion in the Reports is
included in the Reports; and

                                       K-1

<PAGE>

     (4) The report on assessment of compliance with servicing criteria for
asset-backed securities of the Trustee and its related attestation report on
assessment of compliance with servicing criteria required to be included in the
Annual Report in accordance with Item 1122 of Regulation AB and Exchange Act
Rules 13a-18 and 15d-18 has been included as an exhibit to the Annual Report.
Any material instances of non-compliance are described in such report and have
been disclosed in the Annual Report.

LaSalle Bank National Association,
as Trustee

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

                                       K-2

<PAGE>

                                    EXHIBIT L

                    FORM OF OFFICER'S CERTIFICATE OF SERVICER

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Re: Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
    Asset-Backed Certificates, Series 2007-2

     Home Loan Services, Inc. (the "Servicer") certifies to the Depositor and
the Trustee, and their officers, directors and affiliates, and with the
knowledge and intent that they will rely upon this certification, that:

     (1) I am responsible for reviewing the activities performed by the Servicer
under the Pooling and Servicing Agreement and I have reviewed, or persons under
my supervision have reviewed, the servicer compliance statement of the Servicer
and the compliance statements of each Sub-Servicer, if any, engaged by the
Servicer provided to the Depositor and the Trustee for the Issuing Entity's
fiscal year [___] in accordance with Item 1123 of Regulation AB (each a
"Compliance Statement"), the report on assessment of the Servicer's compliance
with the servicing criteria set forth in Item 1122(d) of Regulation AB (the
"Servicing Criteria") and reports on assessment of compliance with servicing
criteria for asset-backed securities of the Servicer and of each Sub-Servicer
[or Subcontractor], if any, engaged or utilized by the Servicer provided to the
Depositor and the Trustee for the Issuing Entity's fiscal year [___] in
accordance with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934,
as amended (the "Exchange Act") and Item 1122 of Regulation AB (each a
"Servicing Assessment"), the registered public accounting firm's attestation
report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
Act and Section 1122(b) of Regulation AB related to each Servicing Assessment
(each a "Attestation Report"), and all servicing reports, officer's certificates
and other information relating to the servicing of the Mortgage Loans by the
Servicer during 200[_____] that were delivered or caused to be delivered by the
Servicer pursuant to the Agreement (collectively, the "Servicing Information");

     (2) Based on my knowledge, and assuming the accuracy of the information
provided to the Servicer by third parties in connection with the performance of
the Servicer's duties under the Pooling and Servicing Agreement, the Servicing
Information, taken as a whole, does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in the light of the circumstances under which such statements were made,
not misleading with respect to the period of time covered by the Servicing
Information;

     (3) Based on my knowledge, the servicing information required to be
provided to the Trustee by the Servicer pursuant to the Pooling and Servicing
Agreement has been provided to the Trustee;

     (4) Based on my knowledge and the compliance review conducted in preparing
each Compliance Statement of the Servicer and, if applicable, reviewing each
Compliance Statement of each Sub-Servicer, if any, engaged by the Servicer, and
except as disclosed in such Compliance Statement[(s)], the Servicer [(directly
and through its Sub-Servicers, if any)] has fulfilled its obligations under the
Pooling and Servicing Agreement in all material respects.

                                       L-1

<PAGE>

     (5) Each Servicing Assessment of the Servicer and of each Sub-Servicer [or
Subcontractor], if any, engaged or utilized by the Servicer and its related
Attestation Report required to be included in the Annual Report in accordance
with Item 1122 of Regulation AB and Exchange Act Rules 13a-18 and 15d-18 has
been provided to the Depositor and the Trustee. Any material instances of
non-compliance are described in any such Servicing Assessment or Attestation
Report.

Date:
      -------------------------------

Home Loan Services, Inc.,
as Servicer

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

                                       L-2

<PAGE>

                                   EXHIBIT M-1

                     FORM OF CLASS A-1 CAP CORRIDOR CONTRACT

BEAR STEARNS

                                            BEAR STEARNS FINANCIAL PRODUCTS INC.
                                                              383 MADISON AVENUE
                                                        NEW YORK, NEW YORK 10179
                                                                    212-272-4009

DATE:                 April 26, 2007

TO:                   LaSalle Bank National Association, not in its individual
                      capacity, but solely as Trustee on behalf of Merrill Lynch
                      First Franklin Mortgage Loan Trust, Mortgage Loan
                      Asset-Backed Certificates, Series 2007-2

ATTENTION:            Global Securities and Trust Services
TELEPHONE:            312-992-0668
FACSIMILE:            312-904-1368

FROM:                 Derivatives Documentation
TELEPHONE:            212-272-2711
FACSIMILE:            212-272-9857

SUBJECT:              Fixed Income Derivatives Confirmation

REFERENCE NUMBER(S):  FXNEC9481

The purpose of this letter agreement is to confirm the terms and conditions of
the Transaction entered into on the Trade Date specified below (the
"Transaction") between Bear Stearns Financial Products Inc. ("BSFP") and LaSalle
Bank National Association, not in its individual capacity, but solely as Trustee
on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 ("Counterparty"). This letter agreement
constitutes the sole and complete "Confirmation," as referred to in the Master
Agreement specified below, with respect to this Transaction.

1.    This Confirmation is subject to and incorporates the 2000 ISDA Definitions
      (the "Definitions"), as published by the International Swaps and
      Derivatives Association, Inc. ("ISDA"). This Confirmation supplements,
      forms a part of and is subject to the ISDA Master Agreement dated as of
      April 25, 2007 between BSFP and Counterparty (the agreement, as amended
      and supplemented from time to time, being referred to herein as the
      "Master Agreement"). All provisions contained in, or incorporated by
      reference to, the Master Agreement shall govern the Transaction referenced
      in this Confirmation except as expressly modified herein. In the event of
      any inconsistency between this Confirmation and the Definitions or Master
      Agreement, this Confirmation shall prevail.

2.    The terms of the particular Transaction to which this Confirmation relates
      are as follows:

         Type of Transaction:           Rate Cap

      Notional Amount:               With respect to any Calculation Period, the
                                     lesser of (i) the applicable Notional
                                     Amount for the Distribution Date specified
                                     in Schedule I attached hereto and (ii) the

                                      M-1-1

<PAGE>
Reference Number:  FXNEC9481

LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 2 of 6

                                     aggregate Certificate Principal Balance of
                                     the Certificates immediately prior to the
                                     related Floating Rate Payer Payment Date.

      Trade Date:                    April 24, 2007

      Effective Date:                April 26, 2007

      Termination Date:              October 25, 2007, subject to adjustment in
                                     accordance with the Business Day
                                     Convention.

      FIXED AMOUNT (PREMIUM):        Inapplicable. The Fixed Amounts for this
                                     Transaction and for the Transactions with
                                     the BSFP Reference Numbers FXNEC9482 and
                                     FXNEC9483 are embedded in the determination
                                     of the Additional Amount specified in the
                                     Confirmation identified by the Bear Stearns
                                     Capital Markets Inc. Reference Number
                                     CXNS228032.

      FLOATING AMOUNTS:

           Floating Rate Payer:      BSFP

           Cap Rate:                 With respect to any Calculation Period, the
                                     rate set forth for such period as detailed
                                     in Schedule I attached hereto.

           Floating Rate Payer       The 25th calendar day of each month during
           Period End Dates:         the Term of this Transaction, commencing
                                     May 25, 2007 and ending on the Termination
                                     Date, subject to adjustment in accordance
                                     with the Business Day Convention.

           Floating Rate Payer
           Payment Dates:            Early Payment shall be applicable. The
                                     Floating Rate Payer Payment Dates shall be
                                     one Business Day preceding each Floating
                                     Rate Payer Period End Date.

           Floating Rate Option:     USD-LIBOR-BBA; provided, however, that if
                                     the Floating Rate Option for any
                                     Calculation Period is greater than
                                     10.86000% then the Floating Rate Option for
                                     such Calculation Period shall be deemed to
                                     be 10.86000%.

<PAGE>
Reference Number:  FXNEC9481

LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 3 of 6

           Designated Maturity:      One month

           Floating Rate Day
           Count Fraction:           Actual/360

           Reset Dates:
                                     The first day of each Calculation Period.
         Compounding:
                                     Inapplicable
         Business Days:
                                     New York, Illinois and Pennsylvania
      Business Day Convention:
                                     Modified Following
      Calculation Agent:
                                     BSFP

3. Merrill Lynch Mortgage Lending, Inc. ("MLML") agrees and acknowledges that
amounts paid hereunder are not intended to benefit the holder of any class of
certificates rated by any rating agency if such holder is MLML or any of its
affiliates. If MLML or any of its affiliates receives any such amounts, it will
promptly remit (or, if such amounts are received by an affiliate of MLML, MLML
hereby agrees that it will cause such affiliate to promptly remit) such amounts
to the Supplemental Interest Trust Trustee, whereupon such Supplemental Interest
Trust Trustee will promptly remit such amounts to BSFP. MLML further agrees to
provide notice to BSFP upon any remittance to the Supplemental Interest Trust
Trustee; such delivery will be made to:

             Address:       383 Madison Avenue, New York, New York 10179
             Attention:     DPC Manager
             Facsimile:     212-272-5823

             with a copy to:

             Address:       One Metrotech Center North, Brooklyn, New York 11201
             Attention:     Derivative Operations - 7th Floor
             Facsimile:     212-272-1634

      NEITHER THE BEAR STEARNS COMPANIES INC. NOR ANY SUBSIDIARY OR AFFILIATE OF
      THE BEAR STEARNS COMPANIES INC. OTHER THAN BSFP IS AN OBLIGOR OR A CREDIT
      SUPPORT PROVIDER ON THIS TRANSACTION.

<PAGE>
Reference Number:  FXNEC9481

LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 4 of 6

4.    Account Details and
      Settlement Information:
                                PAYMENTS TO BSFP:
                                Citibank, N.A., New York
                                ABA Number: 021-0000-89, for the account of
                                Bear, Stearns Securities Corp.
                                Account Number: 0925-3186, for further credit to
                                Bear Stearns Financial Products Inc.
                                Sub-account Number: 102-04654-1-3
                                Attention: Derivatives Department

                                PAYMENTS TO COUNTERPARTY:
                                LaSalle Bank N.A.
                                ABA Number: 071-000-505
                                LaSalle CHGO/CTR/BNF:/LaSalle Trust
                                Account Number: 724693.3
                                Attn: Trevor,Bradna

                                Tel: 312-992-0668

ADDITIONAL PROVISIONS:

Non-Reliance. Each party represents to the other party that (a) it has not
received and is not relying upon any legal, tax, regulatory, accounting or other
advice (whether written or oral) of the other party regarding this Transaction,
other than representations expressly made by that other party in this
Confirmation and in the Master Agreement and (b) in respect of this Transaction,
(i) it has the capacity to evaluate (internally or through independent
professional advice) this Transaction and has made its own decision to enter
into this Transaction and (ii) it understands the terms, conditions and risks of
this Transaction and is willing to assume (financially and otherwise) those
risks. Counterparty acknowledges that BSFP has advised Counterparty to consult
its own tax, accounting and legal advisors in connection with this Transaction
evidenced by this Confirmation and that the Counterparty has done so.

This Confirmation may be executed in several counterparts, each of which shall
be deemed an original but all of which together shall constitute one and the
same instrument.

Counterparty hereby agrees to check this Confirmation and to confirm that the
foregoing correctly sets forth the terms of the Transaction by signing in the
space provided below and returning to BSFP a facsimile of the fully-executed
Confirmation to 212-272-9857. For inquiries regarding U.S. Transactions, please
contact DERIVATIVES DOCUMENTATION by telephone at 212-272-2711. For all other
inquiries please contact DERIVATIVES DOCUMENTATION by telephone at
353-1-402-6233. Originals will be provided for your execution upon your request.

<PAGE>
Reference Number:  FXNEC9481

LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 5 of 6

We are very pleased to have executed this Transaction with you and we look
forward to completing other transactions with you in the near future.

Very truly yours,

BEAR STEARNS FINANCIAL PRODUCTS INC.

By:  _______________________________________
     Name:
     Title:

Counterparty, acting through its duly authorized signatory, hereby agrees to,
accepts and confirms the terms of the foregoing as of the Trade Date.

LASALLE BANK NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY, BUT SOLELY AS
TRUSTEE ON BEHALF OF MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, MORTGAGE
LOAN ASSET-BACKED CERTIFICATES, SERIES 2007-2

By:  _______________________________________
     Name:
     Title:

Section 3 Acknowledged By:
MERRILL LYNCH MORTGAGE LENDING, INC.

By: ________________________________________
    Name:
    Title:

er

<PAGE>
Reference Number:  FXNEC9481

LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 6 of 6

                                   SCHEDULE I
   (all such dates subject to adjustment in accordance with the Business Day
                                  Convention)

<Table>
<Caption>
    FROM AND INCLUDING        TO BUT EXCLUDING          NOTIONAL AMOUNT            CAP RATE
    ------------------        ----------------          ---------------            --------
                                                             (USD)                   (%)
                                                             -----                   ---
<S>                           <C>                       <C>                        <C>
    Effective Date                  05/25/07                588,366,000             7.931%
      05/25/07                      06/25/07                585,556,115             7.410%
      06/25/07                      07/25/07                581,203,486             7.662%
      07/25/07                      08/25/07                575,290,870             7.410%
      08/25/07                      09/25/07                567,819,011             7.410%
      09/25/07                Termination Date              558,788,833             7.662%
</Table>
<PAGE>

                                   EXHIBIT M-2

                     FORM OF CLASS A-2 CAP CORRIDOR CONTRACT

BEAR STEARNS
                                            BEAR STEARNS FINANCIAL PRODUCTS INC.
                                                              383 MADISON AVENUE
                                                        NEW YORK, NEW YORK 10179
                                                                    212-272-4009

DATE:                   April 26, 2007

TO:                     LaSalle Bank National Association, not in its individual
                        capacity, but solely as Trustee on behalf of Merrill
                        Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
                        Asset-Backed Certificates, Series 2007-2

ATTENTION:              Global Securities and Trust Services
TELEPHONE:              312-992-0668
FACSIMILE:              312-904-1368

FROM:                   Derivatives Documentation
TELEPHONE:              212-272-2711
FACSIMILE:              212-272-9857

SUBJECT:                Fixed Income Derivatives Confirmation

REFERENCE NUMBER(S):    FXNEC9482

The purpose of this letter agreement is to confirm the terms and conditions of
the Transaction entered into on the Trade Date specified below (the
"Transaction") between Bear Stearns Financial Products Inc. ("BSFP") and LaSalle
Bank National Association, not in its individual capacity, but solely as Trustee
on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 ("Counterparty"). This letter agreement
constitutes the sole and complete "Confirmation," as referred to in the Master
Agreement specified below, with respect to this Transaction.

1.    This Confirmation is subject to and incorporates the 2000 ISDA Definitions
      (the "Definitions"), as published by the International Swaps and
      Derivatives Association, Inc. ("ISDA"). This Confirmation supplements,
      forms a part of and is subject to the ISDA Master Agreement dated as of
      April 25, 2007 between BSFP and Counterparty (the agreement, as amended
      and supplemented from time to time, being referred to herein as the
      "Master Agreement"). All provisions contained in, or incorporated by
      reference to, the Master Agreement shall govern the Transaction referenced
      in this Confirmation except as expressly modified herein. In the event of
      any inconsistency between this Confirmation and the Definitions or Master
      Agreement, this Confirmation shall prevail.

2.    The terms of the particular Transaction to which this Confirmation relates
      are as follows:

      Type of Transaction:    Rate Cap

      Notional Amount:        With respect to any Calculation Period, the lesser
                              of (i) the applicable Notional Amount for the
                              Distribution Date specified in Schedule I attached
                              hereto and (ii) the

                                      M-2-1

<PAGE>
Reference Number: FXNEC9482
LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 2 of 6

                              aggregate Certificate Principal Balance of the
                              Certificates immediately prior to the related
                              Floating Rate Payer Payment Date.

Trade Date:                   April 24, 2007

Effective Date:               April 26, 2007

Termination Date:             October 25, 2007, subject to adjustment in
                              accordance with the Business Day Convention.

FIXED AMOUNT (PREMIUM):       Inapplicable. The Fixed Amounts for this
                              Transaction and for the Transactions with the BSFP
                              Reference Numbers FXNEC9481 and FXNEC9483 are
                              embedded in the determination of the Additional
                              Amount specified in the Confirmation identified by
                              the Bear Stearns Capital Markets Inc. Reference
                              Number CXNS228032.

FLOATING AMOUNTS:

   Floating Rate Payer:       BSFP

   Cap Rate:                  With respect to any Calculation Period, the rate
                              set forth for such period as detailed in Schedule
                              I attached hereto.

Floating Rate Payer           The 25th calendar day of each month during the
Period End Dates:             Term of this Transaction, commencing May 25, 2007
                              and ending on the Termination Date, subject to
                              adjustment in accordance with the Business Day
                              Convention.

Floating Rate Payer
Payment Dates:                Early Payment shall be applicable. The Floating
                              Rate Payer Payment Dates shall be one Business Day
                              preceding each Floating Rate Payer Period End
                              Date.

Floating Rate Option:         USD-LIBOR-BBA; provided, however, that if the
                              Floating Rate Option for any Calculation Period is
                              greater than 10.28000% then the Floating Rate
                              Option for such Calculation Period shall be deemed
                              to be 10.28000%.
<PAGE>
Reference Number: FXNEC9482
LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 3 of 6

     Designated Maturity:     One month

     Floating Rate Day
     Count Fraction:          Actual/360

     Reset Dates:             The first day of each Calculation Period.

    Compounding:              Inapplicable

    Business Days:            New York, Illinois and Pennsylvania

   Business Day Convention:   Modified Following

   Calculation Agent:         BSFP

3. Merrill Lynch Mortgage Lending, Inc. ("MLML") agrees and acknowledges that
amounts paid hereunder are not intended to benefit the holder of any class of
certificates rated by any rating agency if such holder is MLML or any of its
affiliates. If MLML or any of its affiliates receives any such amounts, it will
promptly remit (or, if such amounts are received by an affiliate of MLML, MLML
hereby agrees that it will cause such affiliate to promptly remit) such amounts
to the Supplemental Interest Trust Trustee, whereupon such Supplemental Interest
Trust Trustee will promptly remit such amounts to BSFP. MLML further agrees to
provide notice to BSFP upon any remittance to the Supplemental Interest Trust
Trustee; such delivery will be made to:

        Address:       383 Madison Avenue, New York, New York 10179
        Attention:     DPC Manager
        Facsimile:     212-272-5823

        with a copy to:

        Address:       One Metrotech Center North, Brooklyn, New York 11201
        Attention:     Derivative Operations - 7th Floor
        Facsimile:     212-272-1634

      NEITHER THE BEAR STEARNS COMPANIES INC. NOR ANY SUBSIDIARY OR AFFILIATE OF
      THE BEAR STEARNS COMPANIES INC. OTHER THAN BSFP IS AN OBLIGOR OR A CREDIT
      SUPPORT PROVIDER ON THIS TRANSACTION.

<PAGE>

Reference Number: FXNEC9482
LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 4 of 6

<TABLE>
<S>                           <C>                                               <C>
4. Account Details and
   Settlement Information:
                              PAYMENTS TO BSFP:

                              Citibank, N.A., New York
                              ABA Number: 021-0000-89, for the account of
                              Bear, Stearns Securities Corp.
                              Account Number: 0925-3186, for further credit to
                              Bear Stearns Financial Products Inc.
                              Sub-account Number: 102-04654-1-3
                              Attention: Derivatives Department

                              PAYMENTS TO COUNTERPARTY:
                              LaSalle Bank N.A.
                              ABA Number: 071-000-505
                              LaSalle CHGO/CTR/BNF:/LaSalle Trust
                              Account Number: 724693.3
                              Attn: Trevor,Bradna                               - DELETED: Brodna
                              -------------------------------------             ------------------------------
                              Tel: 312-992-0668
</Table>

ADDITIONAL PROVISIONS:

Non-Reliance. Each party represents to the other party that (a) it has not
received and is not relying upon any legal, tax, regulatory, accounting or other
advice (whether written or oral) of the other party regarding this Transaction,
other than representations expressly made by that other party in this
Confirmation and in the Master Agreement and (b) in respect of this Transaction,
(i) it has the capacity to evaluate (internally or through independent
professional advice) this Transaction and has made its own decision to enter
into this Transaction and (ii) it understands the terms, conditions and risks of
this Transaction and is willing to assume (financially and otherwise) those
risks. Counterparty acknowledges that BSFP has advised Counterparty to consult
its own tax, accounting and legal advisors in connection with this Transaction
evidenced by this Confirmation and that the Counterparty has done so.

This Confirmation may be executed in several counterparts, each of which shall
be deemed an original but all of which together shall constitute one and the
same instrument.

Counterparty hereby agrees to check this Confirmation and to confirm that the
foregoing correctly sets forth the terms of the Transaction by signing in the
space provided below and returning to BSFP a facsimile of the fully-executed
Confirmation to 212-272-9857. For inquiries regarding U.S. Transactions, please
contact DERIVATIVES DOCUMENTATION by telephone at 212-272-2711. For all other
inquiries please contact DERIVATIVES DOCUMENTATION by telephone at
353-1-402-6233. Originals will be provided for your execution upon your request.

<PAGE>

Reference Number: FXNEC9482
LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 5 of 6

We are very pleased to have executed this Transaction with you and we look
forward to completing other transactions with you in the near future.

Very truly yours,

BEAR STEARNS FINANCIAL PRODUCTS INC.

By:   ______________________________________
      Name:
      Title:

Counterparty, acting through its duly authorized signatory, hereby agrees to,
accepts and confirms the terms of the foregoing as of the Trade Date.

LASALLE BANK NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY, BUT SOLELY AS
TRUSTEE ON BEHALF OF MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, MORTGAGE
LOAN ASSET-BACKED

CERTIFICATES, SERIES 2007-2

By:   ______________________________________
      Name:
      Title:

Section 3 Acknowledged By:
MERRILL LYNCH MORTGAGE LENDING, INC.

By: ________________________________________
    Name:
    Title:

er
<PAGE>
Reference Number: FXNEC9482
LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 6 of 6

                                   SCHEDULE I
          (all such dates subject to adjustment in accordance with the
                            Business Day Convention)

<Table>
<Caption>
 FROM AND INCLUDING        TO BUT EXCLUDING        NOTIONAL AMOUNT        CAP RATE
 ------------------        ----------------        ---------------        --------
                                                        (USD)               (%)
                                                        -----               ---
<S>                        <C>                     <C>                    <C>
    Effective Date               05/25/07             1,027,354,000        7.829%
      05/25/07                   06/25/07             1,022,627,516        7.310%
      06/25/07                   07/25/07             1,015,201,353        7.561%
      07/25/07                   08/25/07             1,005,045,636        7.310%
      08/25/07                   09/25/07              992,158,587         7.310%
      09/25/07             Termination Date            976,542,176         7.562%
</Table>

<PAGE>

                                   EXHIBIT M-3

              FORM OF SUBORDINATE CERTIFICATE CAP CORRIDOR CONTRACT

BEAR STEARNS
                                            BEAR STEARNS FINANCIAL PRODUCTS INC.
                                                              383 MADISON AVENUE
                                                        NEW YORK, NEW YORK 10179
                                                                    212-272-4009

DATE:                         April 26, 2007

TO:                           LaSalle Bank National Association, not in its
                              individual capacity, but solely as Trustee on
                              behalf of Merrill Lynch First Franklin Mortgage
                              Loan Trust, Mortgage Loan Asset-Backed
                              Certificates, Series 2007-2

ATTENTION:                    Global Securities and Trust Services
TELEPHONE:                    312-992-0668
FACSIMILE:                    312-904-1368

FROM:                         Derivatives Documentation
TELEPHONE:                    212-272-2711
FACSIMILE:                    212-272-9857

SUBJECT:                      Fixed Income Derivatives Confirmation

REFERENCE NUMBER(S):          FXNEC9483

The purpose of this letter agreement is to confirm the terms and conditions of
the Transaction entered into on the Trade Date specified below (the
"Transaction") between Bear Stearns Financial Products Inc. ("BSFP") and LaSalle
Bank National Association, not in its individual capacity, but solely as Trustee
on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 ("Counterparty"). This letter agreement
constitutes the sole and complete "Confirmation," as referred to in the Master
Agreement specified below, with respect to this Transaction.

1.    This Confirmation is subject to and incorporates the 2000 ISDA Definitions
      (the "Definitions"), as published by the International Swaps and
      Derivatives Association, Inc. ("ISDA"). This Confirmation supplements,
      forms a part of and is subject to the ISDA Master Agreement dated as of
      April 25, 2007 between BSFP and Counterparty (the agreement, as amended
      and supplemented from time to time, being referred to herein as the
      "Master Agreement"). All provisions contained in, or incorporated by
      reference to, the Master Agreement shall govern the Transaction referenced
      in this Confirmation except as expressly modified herein. In the event of
      any inconsistency between this Confirmation and the Definitions or Master
      Agreement, this Confirmation shall prevail.

2.    The terms of the particular Transaction to which this Confirmation relates
      are as follows:

      Type of Transaction:    Rate Cap

      Notional Amount:        USD [___________]

      Trade Date:             April 24, 2007

                                      M-3-1

<PAGE>
Reference Number: FXNEC9483
LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 2 of 6

Effective Date:               April 26, 2007

 Termination Date:            October 25, 2007, subject to adjustment in
                              accordance with the Business Day Convention.

 FIXED AMOUNT (PREMIUM):      Inapplicable. The Fixed Amounts for this
                              Transaction and for the Transactions with the BSFP
                              Reference Numbers FXNEC9481 and FXNEC9482 are
                              embedded in the determination of the Additional
                              Amount specified in the Confirmation identified by
                              the Bear Stearns Capital Markets Inc. Reference
                              Number CXNS228032.

 FLOATING AMOUNTS:

    Floating Rate Payer:      BSFP

    Cap Rate:                 With respect to any Calculation Period, the rate
                              set forth for such period as detailed in Schedule
                              I attached hereto.

    Floating Rate Payer
    Period End Dates:         The 25th calendar day of each month during the
                              Term of this Transaction, commencing May 25, 2007
                              and ending on the Termination Date, subject to
                              adjustment in accordance with the Business Day
                              Convention.

    Floating Rate Payer
    Payment Dates:            Early Payment shall be applicable. The Floating
                              Rate Payer Payment Dates shall be one Business Day
                              preceding each Floating Rate Payer Period End
                              Date.

    Floating Rate Option:     USD-LIBOR-BBA; provided, however, that if the
                              Floating Rate Option for any Calculation Period is
                              greater than 8.54000% then the Floating Rate
                              Option for such Calculation Period shall be deemed
                              to be 8.54000%.

    Designated Maturity:      One month

    Floating Rate Day
    Count Fraction:           Actual/360

<PAGE>
Reference Number: FXNEC9483
LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 3 of 6

       Reset Dates:           The first day of each Calculation Period.

     Compounding:             Inapplicable

     Business Days:           New York, Illinois and Pennsylvania

   Business Day Convention:   Modified Following

   Calculation Agent:         BSFP

3. Merrill Lynch Mortgage Lending, Inc. ("MLML") agrees and acknowledges that
amounts paid hereunder are not intended to benefit the holder of any class of
certificates rated by any rating agency if such holder is MLML or any of its
affiliates. If MLML or any of its affiliates receives any such amounts, it will
promptly remit (or, if such amounts are received by an affiliate of MLML, MLML
hereby agrees that it will cause such affiliate to promptly remit) such amounts
to the Supplemental Interest Trust Trustee, whereupon such Supplemental Interest
Trust Trustee will promptly remit such amounts to BSFP. MLML further agrees to
provide notice to BSFP upon any remittance to the Supplemental Interest Trust
Trustee; such delivery will be made to:

        Address:            383 Madison Avenue, New York, New York 10179
        Attention:          DPC Manager
        Facsimile:          212-272-5823

        with a copy to:

        Address:            One Metrotech Center North, Brooklyn, New York 11201
        Attention:          Derivative Operations - 7th Floor
        Facsimile:          212-272-1634

      NEITHER THE BEAR STEARNS COMPANIES INC. NOR ANY SUBSIDIARY OR AFFILIATE OF
      THE BEAR STEARNS COMPANIES INC. OTHER THAN BSFP IS AN OBLIGOR OR A CREDIT
      SUPPORT PROVIDER ON THIS TRANSACTION.

4.  Account Details and
    Settlement Information:   PAYMENTS TO BSFP:
                              Citibank, N.A., New York
                              ABA Number: 021-0000-89, for the account of
                              Bear, Stearns Securities Corp.

<PAGE>
Reference Number: FXNEC9483
LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 4 of 6

<TABLE>
<S>                           <C>                                               <C>
                              Account Number: 0925-3186, for further credit to
                              Bear Stearns Financial Products Inc.
                              Sub-account Number: 102-04654-1-3
                              Attention: Derivatives Department

                              PAYMENTS TO COUNTERPARTY:

                              LaSalle Bank N.A.
                              ABA Number: 071-000-505
                              LaSalle CHGO/CTR/BNF:/LaSalle Trust
                              Account Number: 724693.3
                              Attn: Trevor,Bradna                               DELETED: Brodna
                              --------------------------------------
                              Tel: 312-992-0668
</TABLE>

ADDITIONAL PROVISIONS:

Non-Reliance. Each party represents to the other party that (a) it has not
received and is not relying upon any legal, tax, regulatory, accounting or other
advice (whether written or oral) of the other party regarding this Transaction,
other than representations expressly made by that other party in this
Confirmation and in the Master Agreement and (b) in respect of this Transaction,
(i) it has the capacity to evaluate (internally or through independent
professional advice) this Transaction and has made its own decision to enter
into this Transaction and (ii) it understands the terms, conditions and risks of
this Transaction and is willing to assume (financially and otherwise) those
risks. Counterparty acknowledges that BSFP has advised Counterparty to consult
its own tax, accounting and legal advisors in connection with this Transaction
evidenced by this Confirmation and that the Counterparty has done so.

This Confirmation may be executed in several counterparts, each of which shall
be deemed an original but all of which together shall constitute one and the
same instrument.

Counterparty hereby agrees to check this Confirmation and to confirm that the
foregoing correctly sets forth the terms of the Transaction by signing in the
space provided below and returning to BSFP a facsimile of the fully-executed
Confirmation to 212-272-9857. For inquiries regarding U.S. Transactions, please
contact DERIVATIVES DOCUMENTATION by telephone at 212-272-2711. For all other
inquiries please contact DERIVATIVES DOCUMENTATION by telephone at
353-1-402-6233. Originals will be provided for your execution upon your request.

<PAGE>
Reference Number: FXNEC9483
LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 5 of 6

We are very pleased to have executed this Transaction with you and we look
forward to completing other transactions with you in the near future.

Very truly yours,

BEAR STEARNS FINANCIAL PRODUCTS INC.

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

Counterparty, acting through its duly authorized signatory, hereby agrees to,
accepts and confirms the terms of the foregoing as of the Trade Date.

LASALLE BANK NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY, BUT SOLELY AS
TRUSTEE ON BEHALF OF MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, MORTGAGE
LOAN ASSET-BACKED CERTIFICATES, SERIES 2007-2

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

Section 3 Acknowledged By:
MERRILL LYNCH MORTGAGE LENDING, INC.

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

er

<PAGE>
Reference Number: FXNEC9483
LaSalle Bank National Association, not in its individual capacity, but solely as
Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-2
April 26, 2007
Page 6 of 6

                                   SCHEDULE I
          (all such dates subject to adjustment in accordance with the
                            Business Day Convention)

 FROM AND INCLUDING          TO BUT EXCLUDING              CAP RATE
 ------------------          ----------------              --------
                                                              (%)
   Effective Date                05/25/07                   7.097%
      05/25/07                   06/25/07                   6.577%
      06/25/07                   07/25/07                   6.829%
      07/25/07                   08/25/07                   6.577%
      08/25/07                   09/25/07                   6.578%
      09/25/07               Termination Date               6.830%

<PAGE>

                                   EXHIBIT M-4

       FORM OF CREDIT SUPPORT ANNEX RELATED TO THE CAP CORRIDOR CONTRACTS

                                    SCHEDULE
                                     TO THE
                                     ISDA(R)
              INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC.
                                MASTER AGREEMENT
                           dated as of April 26, 2007

between BEAR STEARNS FINANCIAL PRODUCTS INC., a corporation organized under the
laws of Delaware ("Bear Stearns"), and LASALLE BANK NATIONAL ASSOCIATION, NOT IN
ITS INDIVIDUAL CAPACITY, BUT SOLELY AS TRUSTEE ON BEHALF OF MERRILL LYNCH FIRST
FRANKLIN MORTGAGE LOAN TRUST, MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES
2007-2 ("Counterparty").

Reference is hereby made to the Pooling and Servicing Agreement, dated as of
April 1, 2007, among, Merrill Lynch Mortgage Investors, Inc., as depositor
("Depositor"), LaSalle Bank National Association, as trustee ("Trustee"), and
Home Loan Services, Inc., as servicer ("Servicer") (the "Pooling and Servicing
Agreement").

Part 1.  Termination Provisions.

For purposes of this Agreement:

(a)      "SPECIFIED ENTITY" will not apply to Bear Stearns or Counterparty for
         any purpose.

(b)      "SPECIFIED TRANSACTIONS" will not apply to Bear Stearns or Counterparty
         for any purpose.

(c)      The "FAILURE TO PAY OR DELIVER" provisions of Section 5(a)(i) will
         apply to Bear Stearns and will apply to Counterparty; provided that
         notwithstanding anything to the contrary in Section 5(a)(i) or
         Paragraph 7 of the Credit Support Annex, any failure by Bear Stearns to
         comply with or perform any obligation to be complied with or performed
         by Bear Stearns under the Credit Support Annex shall not constitute an
         Event of Default under Section 5(a)(i) unless (A) a Moody's Second
         Level Downgrade has occurred arnd been continuing for 30 or more Local
         Business Days and (B) such failure is not remedied on or before the
         third Local Business Day after notice of such failure is given to Bear
         Stearns.

(d)      The "BREACH OF AGREEMENT" provisions of Section 5(a)(ii) will apply to
         Bear Stearns and will not apply to Counterparty.

(e)      The "CREDIT SUPPORT DEFAULT" provisions of Section 5(a)(iii) will apply
         to (x) Bear Stearns; provided that notwithstanding anything to the
         contrary in Section 5(a)(iii)(1), any failure by Bear Stearns to comply
         with or perform any obligation to be complied with or performed by Bear
         Stearns under the Credit Support Annex shall not constitute an Event of
         Default under Section 5(a)(iii) unless (A) a Moody's Second Level
         Downgrade has occurred and been continuing for 30

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483

                                      M-4-1

<PAGE>
2 of 30

         or more Local Business Days and (B) such failure is not remedied on or
         before the third Local Business Day after notice of such failure is
         given to Bear Stearns and (y) Counterparty solely in respect of
         Counterparty's obligations under Paragraph 3(b) of the Credit Support
         Annex.

(f)      The "MISREPRESENTATION" provisions of Section 5(a)(iv) will apply to
         Bear Stearns and will not apply to Counterparty.

(g)      The "DEFAULT UNDER SPECIFIED TRANSACTION" provisions of Section 5(a)(v)
         will not apply to Bear Stearns or Counterparty.

(h)      The "CROSS DEFAULT" provisions of Section 5(a)(vi) will apply to Bear
         Stearns and will not apply to Counterparty.

                  "SPECIFIED INDEBTEDNESS" will have the meaning specified in
                  Section 14.

                  "THRESHOLD AMOUNT" means USD 100,000,000.

(i)      The "BANKRUPTCY" provisions of Section 5(a)(vii) will apply to Bear
         Stearns and will apply to Counterparty except that the provisions of
         Section 5(a)(vii)(2), (6) (to the extent that such provisions refer to
         any appointment contemplated or effected by the [Pooling and Servicing
         Agreement] or any appointment to which Counterparty has not become
         subject to), (7) and (9) will not apply to Counterparty; provided that,
         with respect to Counterparty only, Section 5(a)(vii)(4) is hereby
         amended by adding after the words "against it" the words "(excluding
         any proceeding or petition instituted or presented by Bear Stearns)",
         and Section 5(a)(vii)(8) is hereby amended by deleting the words "to
         (7) inclusive" and inserting lieu thereof ", (3), (4) as amended, (5)
         or (6) as amended".

(j)      The "TAX EVENT UPON MERGER" provisions of Section 5(b)(iii) will apply
         to Bear Stearns and will apply to Counterparty; provided that Bear
         Stearns shall not be entitled to designate an Early Termination Date by
         reason of a Tax Event upon Merger in respect of which it is the
         Affected Party.

(k)      The "CREDIT EVENT UPON MERGER" provisions of Section 5(b)(iv) will not
         apply to Bear Stearns or Counterparty.

(l)      The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a) will not
         apply to Bear Stearns or to Counterparty.

(m)      Payments on Early Termination. For the purpose of Section 6(e) of this
         Agreement:

                  (1)      Market Quotation will apply; and

                  (2)      the Second Method will apply;

                  provided that if Bear Stearns is the Defaulting Party or the
                  sole Affected Party, the following provisions will apply:

                           (A) Section 6(e) of this Agreement will be amended by
                           inserting on the first line "or is effectively
                           designated" after "If an Early Termination Date
                           occurs";

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483
<PAGE>
3 of 30

                           (B) The definition of Market Quotation in Section 14
                           shall be deleted in its entirety and replaced with
                           the following:

                                    "MARKET QUOTATION" means, with respect to
                                    one or more Terminated Transactions, and a
                                    party making the determination, an amount
                                    determined on the basis of Firm Offers from
                                    Reference Market-makers that are Eligible
                                    Replacements. Each Firm Offer will be (1)
                                    for an amount that would be paid to
                                    Counterparty (expressed as a negative
                                    number) or by Counterparty (expressed as a
                                    positive number) in consideration of an
                                    agreement between Counterparty and such
                                    Reference Market-maker to enter into a
                                    Replacement Transaction and (2) made on the
                                    basis that Unpaid Amounts in respect of the
                                    Terminated Transaction or group of
                                    Transactions are to be excluded but, without
                                    limitation, any payment or delivery that
                                    would, but for the relevant Early
                                    Termination Date, have been required
                                    (assuming satisfaction of each applicable
                                    condition precedent) after that Early
                                    Termination Date is to be included. The
                                    party making the determination (or its
                                    agent) will request each Reference
                                    Market-maker to provide its Firm Offer to
                                    the extent reasonably practicable as of the
                                    same day and time (without regard to
                                    different time zones) on or as soon as
                                    reasonably practicable after the designation
                                    or occurrence of the relevant Early
                                    Termination Date. The day and time as of
                                    which those Firm Offers are to be obtained
                                    will be selected in good faith by the party
                                    obliged to make a determination under
                                    Section 6(e), and, if each party is so
                                    obliged, after consultation with the other.
                                    The Market Quotation shall be the Firm Offer
                                    actually accepted by Counterparty no later
                                    than the Business Day preceding the Early
                                    Termination Date. If no Firm Offers are
                                    provided by the Business Day preceding the
                                    Early Termination Date, it will be deemed
                                    that the Market Quotation in respect of such
                                    Terminated Transaction or group of
                                    Transactions cannot be determined.

                           (C) Counterparty shall use best efforts to accept a
                           Firm Offer that would determine the Market Quotation.
                           If more than one Firm Offer (which, if accepted,
                           would determine the Market Quotation) is provided,
                           Counterparty shall accept the Firm Offer (among such
                           Firm Offers) which would require either (x) the
                           lowest payment by the Counterparty to the Reference
                           Market-maker, to the extent Counterparty would be
                           required to make a payment to the Reference
                           Market-maker or (y) the highest payment from the
                           Reference Market-maker to Counterparty, to the extent
                           the Reference Market-maker would be required to make
                           a payment to the Counterparty. If only one Firm Offer
                           (which, if accepted, would determine the Market
                           Quotation) is provided, Counterparty shall accept
                           such Firm Offer.

                           (D) Upon the written request by Counterparty to Bear
                           Stearns, Bear Stearns shall obtain the Market
                           Quotations on behalf of Counterparty.

                           (E) If the Settlement Amount is a negative number,
                           Section 6(e)(i)(3) of this Agreement shall be deleted
                           in its entirety and replaced with the following:

                                    "(3) Second Method and Market Quotation. If
                                    the Second Method and Market Quotation
                                    apply, (I) Counterparty shall pay to Bear
                                    Stearns an
Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>
4 of 30

                                    amount equal to the absolute value of the
                                    Settlement Amount in respect of the
                                    Terminated Transactions, (II) Counterparty
                                    shall pay to Bear Stearns the Termination
                                    Currency Equivalent of the Unpaid Amounts
                                    owing to Bear Stearns and (III) Bear Stearns
                                    shall pay to Counterparty the Termination
                                    Currency Equivalent of the Unpaid Amounts
                                    owing to Counterparty; provided, however,
                                    that (x) the amounts payable under the
                                    immediately preceding clauses (II) and (III)
                                    shall be subject to netting in accordance
                                    with Section 2(c) of this Agreement and (y)
                                    notwithstanding any other provision of this
                                    Agreement, any amount payable by Bear
                                    Stearns under the immediately preceding
                                    clause (III) shall not be netted-off against
                                    any amount payable by Counterparty under the
                                    immediately preceding clause (I)."

(n)      "TERMINATION CURRENCY" means United States Dollars.

(o)      ADDITIONAL TERMINATION EVENTS. Additional Termination Events will
         apply:

            (i)   If, upon the occurrence of a Swap Disclosure Event (as defined
                  in Part 5(l)(ii) below) Bear Stearns has not, within ten (10)
                  calendar days after such Swap Disclosure Event complied with
                  any of the provisions set forth in Part 5 (l) below, then an
                  Additional Termination Event shall have occurred with respect
                  to Bear Stearns, Bear Stearns shall be the sole Affected Party
                  and all Transactions hereunder shall be Affected Transaction.

            (ii)      If, without the prior written consent of Bear Stearns
                      where such consent is required under the Pooling and
                      Servicing Agreement, an amendment or supplemental
                      agreement is made to the Pooling and Servicing Agreement
                      which amendment or supplemental agreement could reasonably
                      be expected to have a material adverse effect on the
                      interests of Bear Stearns under this Agreement, an
                      Additional Termination Event shall have occurred with
                      respect to Counterparty, Counterparty shall be the sole
                      Affected Party and all Transactions hereunder shall be
                      Affected Transaction.

            (iii)          (A)      If a S&P First Level Downgrade has occurred
                                    and is continuing and Bear Stearns fails to
                                    take any action described under Part
                                    (5)(f)(i)(1), within the time period
                                    specified therein, then an Additional
                                    Termination Event shall have occurred with
                                    respect to Bear Stearns, Bear Stearns shall
                                    be the sole Affected Party with respect to
                                    such Additional Termination Event and all
                                    Transactions hereunder shall be Affected
                                    Transaction.

                           (B)      If a S&P Second Level Downgrade has occurred
                                    and is continuing and Bear Stearns fails to
                                    take any action described under Part
                                    (5)(f)(i)(2) within the time period
                                    specified therein, then an Additional
                                    Termination Event shall have occurred with
                                    respect to Bear Stearns, Bear Stearns shall
                                    be the sole Affected Party with respect to
                                    such Additional Termination Event and all
                                    Transactions hereunder shall be Affected
                                    Transaction.

                           (C)      If (A) a Moody's Second Level Downgrade has
                                    not occurred and been continuing for 30 or
                                    more Local Business Days and (B) Bear
                                    Stearns has failed to comply with or perform
                                    any obligation to be complied with or
                                    performed by Bear Stearns in accordance with
                                    the Credit Support Annex,

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483
<PAGE>
5 of 30

                                    then an Additional Termination Event shall
                                    have occurred with respect to Bear Stearns
                                    and Bear Stearns shall be the sole Affected
                                    Party with respect to such Additional
                                    Termination Event.

                           (D)      If (A) a Moody's Second Level Downgrade has
                                    occurred and been continuing for 30 or more
                                    Local Business Days and (B) either (i) at
                                    least one Eligible Replacement has made a
                                    Firm Offer to be the transferee or (ii) at
                                    least one entity that satisfies the Moody's
                                    Approved Ratings Threshold has made a Firm
                                    Offer to provide an Eligible Guaranty in
                                    respect of all of Bear Stearns' present and
                                    future obligations under this Agreement,
                                    then an Additional Termination Event shall
                                    have occurred with respect to Bear Stearns,
                                    Bear Stearns shall be the sole Affected
                                    Party with respect to such Additional
                                    Termination Event and all Transactions
                                    hereunder shall be Affected Transaction.

(p) LIMITATION ON EVENTS OF DEFAULT. Notwithstanding the terms of Sections 5 and
6 of this Agreement, if at any time and so long as the Counterparty has
satisfied in full all its payment obligations under Section 2(a)(i) of this
Agreement and has at the time no future payment obligations, whether absolute or
contingent, under such Section, then unless Bear Stearns is required pursuant to
appropriate proceedings to return to the Counterparty or otherwise returns to
the Counterparty upon demand of the Counterparty any portion of any such
payment, (a) the occurrence of an event described in Section 5(a) of this
Agreement with respect to the Counterparty shall not constitute an Event of
Default or Potential Event of Default with respect to the Counterparty as
Defaulting Party and (b) Bear Stearns shall be entitled to designate an Early
Termination Date pursuant to Section 6 of this Agreement only as a result of the
occurrence of a Termination Event set forth in either Section 5(b)(i) or
5(b)(ii) of the ISDA Form Master Agreement with respect to Bear Stearns as the
Affected Party, or Section 5(b)(iii) with respect to Bear Stearns as the
Burdened Party.

Part 2.  Tax Matters.

(a)      Tax Representations.

         (i) Payer Representations. For the purpose of Section 3(e) of this
         Agreement, each of Bear Stearns and the Counterparty will make the
         following representations:

         It is not required by any applicable law, as modified by the practice
         of any relevant governmental revenue authority, of any Relevant
         Jurisdiction to make any deduction or withholding for or on account of
         any Tax from any payment (other than interest under Section 2(e),
         6(d)(ii) or 6(e) of this Agreement) to be made by it to the other party
         under this Agreement. In making this representation, it may rely on:

                  (1) the accuracy of any representations made by the other
                  party pursuant to Section 3(f) of this Agreement;

                  (2) the satisfaction of the agreement contained in Sections
                  4(a)(i) and 4(a)(iii) of this Agreement and the accuracy and
                  effectiveness of any document provided by the other party
                  pursuant to Sections 4(a)(i) and 4(a)(iii) of this Agreement;
                  and

                  (3) the satisfaction of the agreement of the other party
                  contained in Section 4(d) of this Agreement, provided that it
                  shall not be a breach of this representation where reliance is

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483
<PAGE>
6 of 30

                  placed on clause (ii) and the other party does not deliver a
                  form or document under Section 4(a)(iii) of this Agreement by
                  reason of material prejudice to its legal or commercial
                  position.

         (ii) Payee Representations. For the purpose of Section 3(f) of this
         Agreement, each of Bear Stearns and the Counterparty make the following
         representations.

         The following representation will apply to Bear Stearns:

                  Bear Stearns is a corporation organized under the laws of the
                  State of Delaware and its U.S. taxpayer identification number
                  is 13-3866307.

         The following representation will apply to the Counterparty:

                  LaSalle Bank National Association represents that it is the
                  Trustee pursuant to the Pooling and Servicing Agreement.

(b)      Tax Provisions.

         Notwithstanding the definition of "Indemnifiable Tax" in Section 14 of
         this Agreement, all Taxes in relation to payments by Bear Stearns shall
         be Indemnifiable Taxes (including any Tax imposed in respect of a
         Credit Support Document) unless (i) such Taxes are assessed directly
         against Counterparty and not by deduction or withholding by Bear
         Stearns or (ii) arise as a result of a Change in Tax Law (in which case
         such Tax shall be an Indemnifiable Tax only if such Tax satisfies the
         definition of Indemnifiable Tax provided in Section 14). In relation to
         payments by Counterparty, no Tax shall be an Indemnifiable Tax.

Part 3.  AGREEMENT TO DELIVER DOCUMENTS. For the purpose of Section 4(a) of this
         Agreement:

         (i)      Tax forms, documents, or certificates to be delivered are:

<Table>
<Caption>
PARTY REQUIRED TO  FORM/DOCUMENT/                  DATE BY WHICH TO
DELIVER DOCUMENT   CERTIFICATE                     BE DELIVERED
<S>                <C>                             <C>
Bear Stearns       An original properly completed  (i) on or before the first payment date
                   and executed United States      under this Agreement, including any Credit
                   Internal Revenue Service Form   Support Document, (ii) promptly upon the
                   W-9 (or any successor thereto)  reasonable demand by Counterparty, (iii)
                   with respect to any payments    prior to the expiration or obsolescence of
                   received or to be received by   any previously delivered form, and (iv)
                   Bear Stearns, that eliminates   promptly upon the information on any such
                   U.S. federal withholding and    previously delivered form becoming
                   backup withholding Tax on       inaccurate or incorrect.
                   payments to Bear Stearns under
                   this Agreement.

Counterparty       An original properly completed  (i) on or before the first payment date
                   and executed United States      under this Agreement, including any Credit
                   Internal                        Support Document, (ii) promptly
</Table>

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>
7 of 30

<Table>
<S>                <C>                             <C>
                   Revenue Service Form W-9        upon the reasonable demand by Bear Stearns,
                   (or any successor thereto)      (iii) prior to the expiration or obsolescence
                   with respect to any payments    of any previously delivered form, and (iv)
                   received or to be received by   promptly upon the information on any such
                   Counterparty.                   previously delivered form becoming
                                                   inaccurate or incorrect.
</Table>

         (ii)     Other documents to be delivered are:

<Table>
<Caption>
PARTY REQUIRED TO         FORM/DOCUMENT/CERTIFICATE                  DATE BY WHICH TO BE          COVERED BY
DELIVER DOCUMENT                                                     DELIVERED                    SECTION 3(d)
                                                                                                  REPRESENTATION
<S>                       <C>                                        <C>                          <C>
Bear Stearns and the      Any documents required by the              Upon the execution and       Yes
Counterparty              receiving party to evidence the            delivery of this
                          authority of the delivering party or       Agreement and such
                          its Credit Support Provider, if any,       Confirmation
                          for it to execute and deliver this
                          Agreement, any Confirmation, and any
                          Credit Support Documents to which it
                          is a party, and to evidence the
                          authority of the delivering party or
                          its Credit Support Provider to perform
                          its obligations under this Agreement,
                          such Confirmation and/or Credit
                          Support Document, as the case may be

Bear Stearns and the      A certificate of an authorized officer     Upon the execution and       Yes
Counterparty              of the party, as to the incumbency and     delivery of this
                          authority of the respective officers       Agreement and such
                          of the party signing this Agreement,       Confirmation
                          any relevant Credit Support Document,
                          or any Confirmation, as the case may be

Bear Stearns and the      An opinion of counsel of such party        Upon the execution and       No
Counterparty              regarding the enforceability of this       delivery of this
                          Agreement in a form reasonably             Agreement
                          satisfactory to the other party.

Counterparty              An executed copy of the Pooling and        Promptly upon receipt by     No
                          Servicing Agreement                        the Counterparty
</Table>

Part 4.  Miscellaneous.

(a)      ADDRESS FOR NOTICES: For the purposes of Section 12(a) of this
         Agreement:

Reference Number: FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>
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            Address for notices or communications to Bear Stearns:

                Address:    383 Madison Avenue, New York, New York 10179
                Attention:  DPC Manager
                Facsimile:  (212) 272-5823

            with a copy to:

                Address:    One Metrotech Center North, Brooklyn, New York 11201
                Attention:  Derivative Operations - 7th Floor
                Facsimile:  (212) 272-1634

            (For all purposes)

            Address for notices or communications to the Counterparty:

                Address:    LaSalle Bank National Association
                            135 South LaSalle Street, Suite 1511
                            Chicago, Illinois 60603
                Attention:  Global Securities and Trust Services -- FFMER 2007-2
                Facsimile:  312-904-1368
                Phone:      312-992-0668

            with a copy to:

                Address:    Merrill Lynch Mortgage Lending Inc.
                            4 World Financial Center
                            350 Vesey Street
                            New York, New York 10080
                Attention:  Alan Chan
                Facsimile:  212-738-1110
                Phone:      212-449-1441

            (For all purposes)

(b)      PROCESS AGENT. For the purpose of Section 13(c) of this Agreement:

                Bear Stearns appoints as its
                Process Agent:     Not Applicable

                The Counterparty appoints as its
                Process Agent:     Not Applicable

(c)      OFFICES. The provisions of Section 10(a) of this Agreement will not
         apply to this Agreement; neither Bear Stearns nor the Counterparty have
         any Offices other than as set forth in the Notices Section.

(d)      MULTIBRANCH PARTY. For the purpose of Section 10(c) of this Agreement:

            Bear Stearns is not a Multibranch Party.

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>
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                  The Counterparty is not a Multibranch Party.

(e)      CREDIT SUPPORT DOCUMENT.

                  Bear Stearns: The Credit Support Annex and any guaranty in
                  support of Bear Stearns' obligations under this Agreement.

                  Counterparty:  The Credit Support Annex.

(f)      CREDIT SUPPORT PROVIDER.

                  Bear Stearns: The guarantor under any guaranty in support of
                  Bear Stearns' obligations under this Agreement.

                  Counterparty:  Not Applicable

(g)      GOVERNING LAW. The parties to this Agreement hereby agree that the law
         of the State of New York shall govern their rights and duties in whole,
         without regard to the conflict of law provisions thereof other than New
         York General Obligations Law Sections 5-1401 and 5-1402.

(h)      JURISDICTION. Section 13(b) is hereby amended by: (i) deleting in the
         second line of subparagraph (i) thereof the word "non-", (ii) deleting
         "; and" from the end of subparagraph 1 and inserting "." in lieu
         thereof, and (iii) deleting the final paragraph thereof.

(i)      "AFFILIATE": Bear Stearns and Counterparty shall be deemed not to have
         any Affiliates for purposes of this Agreement, including for purposes
         of Section 6(b)(ii) of this Agreement.

(j)      NETTING OF PAYMENTS. The parties agree that subparagraph (ii) of
         Section 2(c) of this Agreement will apply to each Transaction.

Part 5.  OTHER PROVISIONS.

(a)  Section 3 of this Agreement is hereby amended by adding at the end thereof
     the following subsection (g):

         "(g)     Relationship Between Parties.

                  Each party represents to the other party on each date when it
                  enters into a Transaction that:

              (1)     Nonreliance. (i) It is acting for its own account, (ii) it
                      is not relying on any statement or representation of the
                      other party regarding the Transaction (whether written or
                      oral), other than the representations expressly made in
                      this Agreement or the Confirmation in respect of that
                      Transaction and (iii) it has consulted with its own legal,
                      regulatory, tax, business, investment, financial and
                      accounting advisors to the extent it has deemed necessary,
                      (iv) it has made its own investment, hedging and trading
                      decisions based upon its own judgment and upon any advice
                      from such advisors as it has deemed necessary and not upon
                      any view expressed by the other party, (v) it has made its
                      own independent decisions to enter into the Transaction
                      and as to whether the Transaction is appropriate or proper
                      for it based upon its own judgment and upon advice from
                      such advisors as it has deemed necessary, (vi) it is

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483
<PAGE>
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                      not relying on any communication (written or oral) of the
                      other party as investment advice or as a recommendation to
                      enter into this Transaction; it being understood that
                      information and explanations related to the terms and
                      conditions of this Transaction shall not be considered
                      investment advice or a recommendation to enter into this
                      Transaction and (vii) it has not received from the other
                      party any assurance or guaranty as to the expected results
                      of this Transaction.

              (2)     Evaluation and Understanding.

                              (i)      It has the capacity to evaluate
                                       (internally or through independent
                                       professional advice) the Transaction and
                                       has made its own decision to enter into
                                       the Transaction; and

                              (ii)     It understands the terms, conditions and
                                       risks of the Transaction and is willing
                                       and able to accept those terms and
                                       conditions and to assume those risks,
                                       financially and otherwise.

              (3)     Purpose. It is entering into the Transaction for the
                      purposes of managing its borrowings or investments,
                      hedging its underlying assets or liabilities or in
                      connection with a line of business.

              (4)     Status of Parties. The other party is not acting as an
                      agent, fiduciary or advisor for it in respect of the
                      Transaction.

              (5)     Eligible Contract Participant. It constitutes an "eligible
                      contract participant" as such term is defined in Section
                      1(a)12 of the Commodity Exchange Act, as amended.

              (6)     Line of Business. It has entered into this Agreement
                      (including each Transaction governed hereby) in
                      conjunction with its line of business or the financing of
                      its business."

(b)      NON-RECOURSE. Notwithstanding any provision herein or in this Agreement
         to the contrary, the obligations of Counterparty hereunder are limited
         recourse obligations of Counterparty, payable solely from the Corridor
         Contract Account and the proceeds thereof, in accordance with the terms
         of the Pooling and Servicing Agreement. In the event that the Corridor
         Contract Account and proceeds thereof should be insufficient to satisfy
         all claims outstanding and following the realization of the Corridor
         Contract Account and the proceeds thereof, any claims against or
         obligations of Counterparty under this Agreement or any other
         confirmation thereunder still outstanding shall be extinguished and
         thereafter not revive. The Trustee shall not have liability for any
         failure or delay in making a payment hereunder to Bear Stearns due to
         any failure or delay in receiving amounts in the Corridor Contract
         Account from the Trust created pursuant to the Pooling and Servicing
         Agreement.

(c)      SEVERABILITY. If any term, provision, covenant, or condition of this
         Agreement, or the application thereof to any party or circumstance,
         shall be held to be invalid or unenforceable (in whole or in part) for
         any reason, the remaining terms, provisions, covenants, and conditions
         hereof shall continue in full force and effect as if this Agreement had
         been executed with the invalid or unenforceable portion eliminated, so
         long as this Agreement as so modified continues to express, without
         material change, the original intentions of the parties as to the
         subject matter of this Agreement and the deletion of such portion of
         this Agreement will not substantially impair the respective benefits or
         expectations of the parties.

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483
<PAGE>
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The parties shall endeavor to engage in good faith negotiations to replace any
invalid or unenforceable term, provision, covenant or condition with a valid or
enforceable term, provision, covenant or condition, the economic effect of which
comes as close as possible to that of the invalid or unenforceable term,
provision, covenant or condition.

(d) CONSENT TO RECORDING. Each party hereto consents to the monitoring or
recording, at any time and from time to time, by the other party of any and all
communications between officers or employees of the parties, waives any further
notice of such monitoring or recording, and agrees to notify its officers and
employees of such monitoring or recording.

(e) WAIVER OF JURY TRIAL. Each party waives any right it may have to a trial by
jury in respect of any Proceedings relating to this Agreement or any Credit
Support Document.

(f) RATING AGENCY DOWNGRADE.

      (i) S&P Downgrade:

            (1)   In the event that a S&P First Level Downgrade occurs and is
                  continuing, then within 30 days after such rating downgrade,
                  Bear Stearns shall, subject to the Rating Agency Condition
                  with respect to S&P, at its own expense, either (i) procure a
                  Permitted Transfer, (ii) obtain an Eligible Guaranty or (iii)
                  post collateral in accordance with the Credit Support Annex.

            (2)   In the event that a S&P Second Level Downgrade occurs and is
                  continuing, then within 10 Local Business Days after such
                  rating withdrawal or downgrade, Bear Stearns shall, subject to
                  the Rating Agency Condition with respect to S&P, at its own
                  expense, either (i) procure a Permitted Transfer or (ii)
                  obtain an Eligible Guaranty.

      (ii) Moody's Downgrade.

            (1)   In the event that a Moody's Second Level Downgrade occurs and
                  is continuing, Bear Stearns shall as soon as reasonably
                  practicable thereafter, at its own expense and using
                  commercially reasonable efforts, either (i) procure a
                  Permitted Transfer or (ii) obtain an Eligible Guaranty.

(g) PAYMENT INSTRUCTIONS. Bear Stearns hereby agrees that, unless notified in
writing by the Trustee of other payment instructions, any and all amounts
payable by Bear Stearns to the Counterparty under this Agreement shall be paid
to the Trustee at the account specified herein.

(h) AMENDMENT. No amendment, waiver, supplement or other modification of this
Transaction shall be permitted by either party unless (i) each of S&P and
Moody's have been provided notice of the same and (ii) such amendment, waiver,
supplement, assignment or other modification satisfies the Rating Agency
Condition.

(i) TRANSFER.

            (i)   The first paragraph of Section 7 is hereby amended in its
                  entirety as follows:

                  "Subject to Section 6(b)(ii), Part 5(f) and Part 5(j), neither
                  this Agreement nor any interest or obligation in or under this
                  Agreement may be transferred (whether by way of security or
                  otherwise) without (a) the prior written consent of the other
                  party

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483
<PAGE>
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                  (which consent shall be deemed given by Counterparty if the
                  transfer, novation or assignment is to an Eligible
                  Replacement) and (b) satisfaction of the Rating Agency
                  Condition with respect to S&P, except that:"

            (ii)  If an entity has made a Firm Offer (which remains an offer
                  that will become legally binding upon acceptance by
                  Counterparty) to be the transferee of a transfer, Counterparty
                  shall, at Bear Stearns' written request and at Bear Stearns'
                  expense, take any reasonable steps required to be taken by
                  Counterparty to effect such transfer.

(j) TRANSFER TO AVOID TERMINATION EVENT. Section 6(b)(ii) is hereby amended by
(i) deleting the words "or if a Tax Event Upon Merger occurs and the Burdened
Party is the Affected Party," and (ii) deleting the last paragraph thereof and
inserting the following:

      "Notwithstanding anything to the contrary in Section 7 (as amended herein)
      and Part 5(i), any transfer by Bear Stearns under this Section 6(b)(ii)
      shall not require the consent of Counterparty; provided that:

      (i)   the transferee (the "Transferee") is an Eligible Replacement;

      (ii)  if the Transferee is domiciled in a different country or political
            subdivision thereof from both Bear Stearns and Counterparty, such
            transfer satisfies the Rating Agency Condition;

      (iii) the Transferee will not, as a result of such transfer, be required
            on the next succeeding Scheduled Payment Date to withhold or deduct
            on account of any Tax (except in respect of default interest)
            amounts in excess of that which Bear Stearns would, on the next
            succeeding Scheduled Payment Date have been required to so withhold
            or deduct unless the Transferee would be required to make additional
            payments pursuant to Section 2(d)(i)(4) corresponding to such
            excess;

      (iv)  a Termination Event or Event of Default does not occur as a result
            of such transfer; and

      (v)   the Transferee confirms in writing that it will accept all of the
            interests and obligations in and under this Agreement which are to
            be transferred to it in accordance with the terms of this provision.

      On and from the effective date of any such transfer to the Transferee,
      Bear Stearns will be fully released from any and all obligations
      hereunder."

(k) PROCEEDINGS. Bear Stearns shall not institute against or cause any other
person to institute against, or join any other person in instituting against,
the Trustee or the trust created pursuant to the Pooling and Servicing
Agreement, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any federal or state
bankruptcy, dissolution or similar law, for a period of one year and one day
(or, if longer, the applicable preference period) following indefeasible payment
in full of the Certificates (the "Certificates").

(l)  COMPLIANCE WITH REGULATION AB.

      (i)   Bear Stearns agrees and acknowledges that Merrill Lynch Mortgage
            Investors, Inc (the "DEPOSITOR") is required under Regulation AB as
            defined under the Pooling and Servicing Agreement, to disclose
            certain financial information regarding Bear Stearns or its group of
            affiliated entities, if applicable, depending on the aggregate
            "significance percentage" of this

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483
<PAGE>
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            Agreement and any other derivative contracts between Bear Stearns or
            its group of affiliated entities, if applicable, and Counterparty,
            as calculated from time to time in accordance with Item 1115 of
            Regulation AB.

      (ii)  It shall be a swap disclosure event ("SWAP DISCLOSURE EVENT") if, on
            any Business Day after the date hereof, the Depositor requests from
            Bear Stearns the applicable financial information described in Item
            1115 of Regulation AB (such request to be based on a reasonable
            determination by Depositor, in good faith, that such information is
            required under Regulation AB) (the "SWAP FINANCIAL DISCLOSURE").

      (iii) Upon the occurrence of a Swap Disclosure Event, Bear Stearns, within
            10 calendar days, at its own expense, shall (1)(a) either (i)
            provide to Depositor the current Swap Financial Disclosure in an
            EDGAR-compatible format (for example, such information may be
            provided in Microsoft Word(R) or Microsoft Excel(R) format but not
            in .pdf format) or (ii) provide written consent to Depositor to
            incorporation by reference of such current Swap Financial Disclosure
            that are filed with the Securities and Exchange Commission in the
            reports of the Trust filed pursuant to the Exchange Act, (b) if
            applicable, cause its outside accounting firm to provide its consent
            to filing or incorporation by reference of such accounting firm's
            report relating to their audits of such current Swap Financial
            Disclosure in the Exchange Act Reports of the Depositor, and (c)
            provide to the Depositor any updated Swap Financial Disclosure with
            respect to Bear Stearns or any entity that consolidates Bear Stearns
            within five days of the release of any such updated Swap Financial
            Disclosure; (2) secure another entity to replace Bear Stearns as
            party, by way of Permitted Transfer, to this Agreement on terms
            substantially similar to this Agreement, which entity (or a
            guarantor therefor) meets or exceeds the Moody's Approved Ratings
            Thresholds and S&P Approved Ratings Threshold and which satisfies
            the Rating Agency Condition and which entity is able to comply with
            the requirements of Item 1115 of Regulation AB, or (3) obtain a
            guaranty of Bear Stearns' obligations under this Agreement from an
            affiliate of Bear Stearns that is able to comply with the financial
            information disclosure requirements of Item 1115 of Regulation AB,
            and cause such affiliate to provide Swap Financial Disclosure and
            any future Swap Financial Disclosure, such that disclosure provided
            in respect of such affiliate will satisfy any disclosure
            requirements applicable to the Swap Provider.

      (iv)  Bear Stearns agrees that, in the event that Bear Stearns provides
            Swap Financial Disclosure to Depositor in accordance with Part
            5(l)(iii)(1) or causes its affiliate to provide Swap Financial
            Disclosure to Depositor in accordance with clause Part 5(l)(iii)(3),
            it will indemnify and hold harmless Depositor, its respective
            directors or officers and any person controlling Depositor, from and
            against any and all losses, claims, damages and liabilities caused
            by any untrue statement or alleged untrue statement of a material
            fact contained in such Swap Financial Disclosure or caused by any
            omission or alleged omission to state in such Swap Financial
            Disclosure a material fact required to be stated therein or
            necessary to make the statements therein, in light of the
            circumstances under which they were made, not misleading.

      (v)   If Depositor or the Trustee reasonably requests, Bear Stearns shall
            provide such other information as may be necessary for Depositor to
            comply with Item 1115 of Regulation AB.

      (vi)  Each of the Depositor and the Trustee shall be an express third
            party beneficiary of this Agreement as if a party hereto to the
            extent of the Depositor's and the Trustee's rights explicitly
            specified in this Part 5(l).

(m) TRUSTEE LIABILITY LIMITATIONS. It is expressly understood and agreed by the
parties hereto that:

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483
<PAGE>
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      (i)   this Agreement is executed and delivered by LaSalle Bank National
            Association ("LaSalle"), not individually or personally but solely
            as Trustee on behalf of Merrill Lynch First Franklin Mortgage Loan
            Trust, Mortgage Loan Asset-Backed Certificates, Series 2007-2;

      (ii)  each of the representations, undertakings and agreements herein made
            on the part of the Counterparty is made and intended not as a
            personal representation, undertaking or agreement of LaSalle but is
            made and intended for the purpose of binding only the Counterparty;

      (iii) nothing herein contained shall be construed as imposing any
            liability upon LaSalle, individually or personally, to perform any
            covenant either expressed or implied contained herein, all such
            liability, if any, being expressly waived by the parties hereto and
            by any Person claiming by, through or under the parties hereto;
            provided that nothing in this paragraph shall relieve LaSalle from
            performing its duties and obligations under the Pooling and
            Servicing Agreement in accordance with the standard of care set
            forth therein;

      (iv)  under no circumstances shall the Trustee be personally liable for
            the payment of any indebtedness or expenses of the Counterparty or
            be liable for the breach or failure of any obligation,
            representation, warranty or covenant made or undertaken by the
            Counterparty under this Agreement or any other related documents,
            other than due to its negligence or willful misconduct in performing
            the obligations of the Trustee under the Pooling and Servicing
            Agreement;

      (v)   any resignation or removal of the Trustee on behalf of the Merrill
            Lynch First Franklin Mortgage Loan Trust, Mortgage Loan Asset-Backed
            Certificates, Series 2007-2 shall require the assignment of this
            agreement to an eligible Trustee replacement;

      (vi)  Trustee has been directed, pursuant to the Pooling and Servicing
            Agreement, to enter into this Agreement and to perform its
            obligations hereunder.

(n) SUBSTANTIAL FINANCIAL TRANSACTION. Each party hereto is hereby advised and
acknowledges that the other party has engaged in (or refrained from engaging in)
substantial financial transactions and has taken (or refrained from taking)
other material actions in reliance upon the entry by the parties into the
Transaction being entered into on the terms and conditions set forth herein and
in the Confirmation relating to such Transaction, as applicable. This paragraph
shall be deemed repeated on the trade date of each Transaction.

(o) SET-OFF. Except as expressly provided for in Section 2(c), Section 6 or Part
1(m)(E) hereof, and notwithstanding any other provision of this Agreement or any
other existing or future agreement, each party irrevocably waives any and all
rights it may have to set off, net, recoup or otherwise withhold or suspend or
condition payment or performance of any obligation between it and the other
party hereunder against any obligation between it and the other party under any
other agreements. Section 6(e) shall be amended by deleting the following
sentence: "The amount, if any, payable in respect of an Early Termination Date
and determined pursuant to this Section will be subject to any Set-off."

(p) COUNTERPARTS. This Agreement may be executed in several counterparts, each
of which shall be deemed an original but all of which together shall constitute
one and the same instrument.

(q) ADDITIONAL DEFINED TERMS.

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483
<PAGE>
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(i)   Capitalized terms used but nor defined herein shall have the meanings
      ascribed to such terms in the Pooling and Servicing Agreement.

(ii)  Additional Definitions:

      "ELIGIBLE GUARANTY" means an unconditional and irrevocable guaranty of all
      present and future payment obligations and obligations to post collateral
      of Bear Stearns or an Eligible Replacement to Counterparty under this
      Agreement that is provided by an Eligible Guarantor as principal debtor
      rather than surety and that is directly enforceable by Counterparty, the
      form and substance of which guaranty are subject to the Rating Agency
      Condition with respect to S&P.

      "ELIGIBLE GUARANTOR" means an entity that has credit ratings at least
      equal to the Moody's Required Ratings Threshold and S&P Approved Ratings
      Threshold.

      "ELIGIBLE REPLACEMENT" means an entity that either (i) satisfies the S&P
      Approved Ratings Threshold and the Moody's Required Ratings Threshold or
      (ii) provides an Eligible Guaranty from an Eligible Guarantor.

      "FIRM OFFER" means an offer which, when made, is capable of becoming
      legally binding upon acceptance.

      "MOODY'S" means Moody's Investors Service, Inc., or any successor.

      "MOODY'S APPROVED RATINGS THRESHOLD" means, with respect to (i) Bear
      Stearns, a Moody's counterparty rating of "A1" or above and (ii) with
      respect to any other entity (or its guarantor), (x) if such entity has
      both a long-term unsecured and unsubordinated debt rating or counterparty
      rating from Moody's and a short-term unsecured and unsubordinated debt
      rating from Moody's, a long-term unsecured and unsubordinated debt rating
      or counterparty rating from Moody's of "A2" or above and a short-term
      unsecured and unsubordinated debt rating from Moody's of "Prime-1" or
      above, or (y) if such entity has only a long-term unsecured and
      unsubordinated debt rating or counterparty rating from Moody's, a
      long-term unsecured and unsubordinated debt rating or counterparty rating
      from Moody's of "A1" or above.

      "MOODY'S FIRST LEVEL DOWNGRADE" means that no Relevant Entity satisfies
      the Moody's Approved Rating Threshold.

      "MOODY'S REQUIRED RATINGS THRESHOLD" means, with respect to (i) Bear
      Stearns, a counterparty rating of "A3" or above and (ii) with respect to
      any other entity (or its guarantor), (x) if such entity has both a
      long-term unsecured and unsubordinated debt rating or counterparty rating
      from Moody's and a short-term unsecured and unsubordinated debt rating
      from Moody's, a long-term unsecured and unsubordinated debt rating or
      counterparty rating from Moody's of "A3" or above or a short-term
      unsecured and unsubordinated debt rating from Moody's of "Prime-2" or
      above, or (y) if such entity has only a long-term unsecured and
      unsubordinated debt rating or counterparty rating from Moody's, a
      long-term unsecured and unsubordinated debt rating or counterparty rating
      from Moody's of "A3" or above.

      "MOODY'S SECOND LEVEL DOWNGRADE" means that no Relevant Entity satisfies
      the Moody's Required Ratings Threshold.

      "PERMITTED TRANSFER" means a transfer by novation by Bear Stearns to an
      entity (the "TRANSFEREE") of all, but not less than all, of Bear Stearns'
      rights, liabilities, duties and

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483
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      obligations under this Agreement, with respect to which transfer each of
      the following conditions is satisfied: (a) the Transferee is an Eligible
      Replacement that is a recognized dealer in interest rate swaps organized
      under the laws of the United States of America or a jurisdiction located
      in the United States of America (or another jurisdiction reasonably
      acceptable to Counterparty), (b) an Event of Default or Termination Event
      would not occur as a result of such transfer, (c) pursuant to a written
      instrument (the "TRANSFER AGREEMENT"), the Transferee acquires and assumes
      all rights and obligations of Bear Stearns under the Agreement and the
      relevant Transaction, (d) Bear Stearns will be responsible for any costs
      or expenses incurred in connection with such transfer (including any
      replacement cost of entering into a replacement transaction); (e) either
      (A) Moody's has been given prior written notice of such transfer and the
      Rating Agency Condition is satisfied with respect to S&P or (B) each
      Rating Agency has been given prior written notice of such transfer and
      such transfer is in connection with the assignment and assumption of this
      Agreement without modification of its terms, other than party names, dates
      relevant to the effective date of such transfer, tax representations and
      any other representations regarding the status of the substitute
      counterparty, notice information and account details and other similar
      provisions; and (f) such transfer otherwise complies with the terms of the
      Pooling and Servicing Agreement.

      "RATING AGENCY" means each of Moody's and S&P.

      "RATING AGENCY CONDITION" means, with respect to any particular proposed
      act or omission to act hereunder that the party acting or failing to act
      must consult with each Rating Agency then providing a rating of the
      Certificates and receive from each such Rating Agency a prior written
      confirmation that the proposed action or inaction would not cause a
      downgrade or withdrawal of its then-current rating of the Certificates.

      "RELEVANT ENTITY" means Bear Stearns and any Eligible Guarantor under an
      Eligible Guaranty with respect to Bear Stearns.

      "REPLACEMENT TRANSACTION" means, with respect to any Terminated
      Transaction or group of Terminated Transactions, a transaction or group of
      transactions that (i) would have the effect of preserving for Counterparty
      the economic equivalent of any payment or delivery (whether the underlying
      obligation was absolute or contingent and assuming the satisfaction of
      each applicable condition precedent) by the parties under Section 2(a)(i)
      in respect of such Terminated Transaction or group of Terminated
      Transactions that would, but for the occurrence of the relevant Early
      Termination Date, have been required after that Date, and (ii) has terms
      which are substantially the same as this Agreement, including, without
      limitation, rating triggers, Regulation AB compliance, and credit support
      documentation, as determined by Counterparty in its sole discretion,
      acting in a commercially reasonable manner.

      "S&P" means Standard & Poor's, a division of The McGraw-Hill Companies,
      Inc.

      "S&P APPROVED RATINGS THRESHOLD" means with respect to (i) Bear Stearns, a
      counterparty rating of "A+" or above and (ii) with respect to any other
      entity (or its guarantor), a short-term unsecured and unsubordinated debt
      rating from S&P of "A-1" or above, or, if such entity does not have a
      short-term unsecured and unsubordinated debt rating from S&P, a long-term
      unsecured and unsubordinated debt rating from S&P of "A+" or above.

      "S&P FIRST LEVEL DOWNGRADE" means that no Relevant Entity satisfies the
      S&P Approved Rating Threshold.

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483
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      "S&P REQUIRED RATINGS THRESHOLD" means with respect to (i) Bear Stearns, a
      counterparty rating of "BBB" or above and (ii) with respect to any other
      entity (or its guarantor), a long-term unsecured and unsubordinated debt
      rating from S&P of "BBB-" or above.

      "S&P SECOND LEVEL DOWNGRADE" means that no Relevant Entity satisfies the
      S&P Required Rating Thresholds.

(r) AGENT FOR COUNTERPARTY. Bear Stearns acknowledges that Counterparty has
appointed the Trustee as its agent under the Pooling and Servicing Agreement to
carry out certain functions on behalf of Counterparty, and that the Trustee
shall be entitled to give notices and to perform and satisfy the obligations of
Counterparty hereunder on behalf of Counterparty.

(s) RATING AGENCY NOTIFICATIONS. Except as otherwise provided herein, no Early
Termination Date shall be effectively designated hereunder shall be made by
either party unless each Rating Agency has been given prior written notice of
such designation.

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483
<PAGE>
18 of 30

IN WITNESS WHEREOF, the parties have executed this Schedule by their duly
authorized officers as of the date hereof.

                              BEAR STEARNS FINANCIAL PRODUCTS INC.

                              By:_______________________________________________
                                 Name:
                                 Title:

                              LASALLE BANK NATIONAL ASSOCIATION, NOT IN ITS
                              INDIVIDUAL CAPACITY, BUT SOLELY AS TRUSTEE ON
                              BEHALF OF MERRILL LYNCH FIRST FRANKLIN MORTGAGE
                              LOAN TRUST, MORTGAGE LOAN ASSET- BACKED
                              CERTIFICATES, SERIES 2007-2

                              By:_______________________________________________
                                 Name:
                                 Title:

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483
<PAGE>
UNILATERAL CSA SCHEDULE(1)

Pledgor:  BEAR STEARNS FINANCIAL PRODUCTS INC. (the "Pledgor")
Secured Party: LASALLE BANK NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL
CAPACITY, BUT SOLELY AS TRUSTEE ON BEHALF OF MERRILL LYNCH FIRST FRANKLIN
MORTGAGE LOAN TRUST, MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2007-2 (the
"Secured Party")

PARAGRAPH 13. ELECTIONS AND VARIABLES

(a)   SECURITY INTEREST FOR "OBLIGATIONS". The term "Obligations" as used in
      this Annex includes no "additional obligations" within the meaning of
      Paragraph 12.

(b)   CREDIT SUPPORT OBLIGATIONS.

            (i)   DELIVERY AMOUNT, RETURN AMOUNT AND CREDIT SUPPORT AMOUNT.

                  (1) DELIVERY AMOUNT. Paragraph 3(a) shall be amended by
            replacing the words "upon a demand made by the Secured Party on or
            promptly following a Valuation Date" with the words "on each
            Valuation Date". The "DELIVERY AMOUNT" with respect to Pledgor for
            any Valuation Date shall equal the greatest of:

                        (A) the amount by which the S&P Collateral Amount
                        exceeds the S&P Value on such Valuation Date of all
                        Posted Credit Support held by the Secured Party;

                        (B) the amount by which the Moody's First Level
                        Collateral Amount exceeds the Moody's First Level Value
                        on such Valuation Date of all Posted Credit Support held
                        by the Secured Party.

                        (C) the amount by which the Moody's Second Level
                        Collateral Amount exceeds the Moody's Second Level Value
                        on such Valuation Date of all Posted Credit Support held
                        by the Secured Party.

                  (2) "RETURN AMOUNT" applicable to Secured Party for any
            Valuation Date shall equal the least of:

                        (A) the amount by which the S&P Value on such Valuation
                        Date of all Posted Credit Support held by the Secured
                        Party exceeds the S&P Collateral Amount;

                        (B) the amount by which the Moody's First Level Value on
                        such Valuation Date of all Posted Credit Support held by
                        the Secured Party exceeds the Moody's First Level
                        Collateral Amount.

                        (C) the amount by which the Moody's Second Level Value
                        on such Valuation Date of all Posted Credit Support held
                        by the Secured Party exceeds the Moody's Second Level
                        Collateral Amount.

----------
(1)   If currency hedge, update Moody's Collateral Amounts and Valuation
      Percentages

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>

                  (3)      "CREDIT SUPPORT AMOUNT" shall be deleted in its
                           entirety.

         (ii)     ELIGIBLE COLLATERAL. The items set forth on the Collateral
                  Schedule attached as Schedule A hereto will qualify as
                  "ELIGIBLE COLLATERAL" for the party specified.

         (iii)    OTHER ELIGIBLE SUPPORT. None

         (iv)     THRESHOLDS.

         (A)      "INDEPENDENT AMOUNT" means:
                  Pledgor:  Not applicable.
                  Secured Party:  Not applicable.

         (B)      "THRESHOLD" means:
                  Pledgor:  Not applicable.
                  Secured Party:  Not applicable.

         (C)      "MINIMUM TRANSFER AMOUNT" means USD 100,000; provided, that if
                  the aggregate Certificate Principal Balance of Certificates
                  rated by S&P is less than USD 50,000,000, the "Minimum
                  Transfer Amount" shall mean USD 50,000.

         (D)      ROUNDING. The Delivery Amount will be rounded up and the
                  Return Amount will be rounded down to the nearest integral
                  multiple of USD 10,000.

(c)      VALUATION AND TIMING.

         (i)      "VALUATION AGENT" means Pledgor.

         (ii)     "VALUATION DATE" means each Local Business Day.2

         (iii)    "VALUATION TIME" means the close of business on the Local
                  Business Day in the city where the Valuation Agent is located
                  immediately preceding the Valuation Date or date of
                  calculation, as applicable; provided that the calculations of
                  Value and Exposure will be made as of approximately the same
                  time on the same date.

         (iv)     "NOTIFICATION TIME" means 11:00 A.M. (New York time).

         (v)      TRANSFER TIMING AND CALCULATIONS. Paragraphs 4(b) and 4(c) are
                  hereby amended and restated in entirety as set forth below.

                           "(b) TRANSFER TIMING. Subject to Paragraphs 4(a) and
                           5 and unless otherwise specified, if a demand for the
                           Transfer of Eligible Credit Support or Posted Credit
                           Support is made by the Notification Time, then the
                           relevant Transfer will be made not later than the
                           close of business on the Valuation Date; if a demand
                           is made after the Notification Time, then the
                           relevant Transfer will be made not later than the
                           close of business on the next Local Business Day
                           thereafter.

                           (c) CALCULATIONS. All calculations of Value and
                           Exposure for purposes of Paragraphs 3 and 6(d) will
                           be made by the Valuation Agent as of the Valuation

-----------------------
ii       If not daily valuations, changes are required in the collateral amounts
         and valuation percentages

Reference Number:  FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>

                           Time. The Valuation Agent will notify each party (or
                           the other party, if the Valuation Agent is a party)
                           of its calculations not later than the Notification
                           Time on the applicable Valuation Date (or in the case
                           of Paragraph 6(d), the Local Business Day following
                           the day on which such relevant calculations are
                           performed)."

(d)      CONDITIONS PRECEDENT. There shall be no "Specified Condition" with
         respect to either party for purposes of this Annex.

(e)      SUBSTITUTION.

         (i)      "SUBSTITUTION DATE" means (A) the Local Business Day on which
                  the Secured Party receives the Substitute Credit Support, if
                  notice of substitution is received by the Notification Time on
                  such date, and (B) the Local Business Day following the date
                  on which the Secured Party receives the Substitute Credit
                  Support, if notice of substitution is received after the
                  Notification Time.

         (ii)     CONSENT OF SECURED PARTY FOR SUBSTITUTION. Inapplicable.

         (iii)    AMENDMENT OF PARAGRAPH 4(d)(II). Paragraph 4(d)(ii) is amended
                  and restated in its entirety as set forth below:

                           "(ii) subject to Paragraph 4(a) of this Annex, the
                           Secured Party will Transfer the items of Posted
                           Credit Support specified by the Pledgor in its notice
                           not later than the close of business on the
                           Substitution Date, provided, however, that if the
                           Secured Party shall not have received the Substitute
                           Credit Support prior to 1:00 P.M. (New York time) on
                           the Substitution Date, then the Secured Party shall
                           Transfer the applicable items of Posted Credit
                           Support not later than the close of business on the
                           Local Business Day immediately following the day on
                           which the Secured Party receives the Substitute
                           Credit Support. Notwithstanding the foregoing, the
                           Secured Party will only be obligated to Transfer
                           Posted Credit Support with a Value as of the
                           Substitution Date equal to the Value of the
                           Substitute Credit Support delivered by the Pledgor in
                           exchange therefor."

(f)      DISPUTE RESOLUTION.

         (i)      "RESOLUTION TIME" means 12:00 noon, New York time, on the
                  Local Business Day for both parties following the date the
                  Disputing Party gives notice of a dispute pursuant to
                  Paragraph 5.

         (ii)     VALUE. For the purpose of Paragraphs 5(i)(C) and 5(ii),
                  disputes over the Value of Posted Credit Support will be
                  resolved by the Valuation Agent seeking bid-side quotations as
                  of the relevant Recalculation Date or date of Transfer, as
                  applicable, from three parties that regularly act as dealers
                  in the securities in question. The Value will be the
                  arithmetic mean of the quotations obtained by the Valuation
                  Agent, multiplied by the applicable Valuation Percentage, if
                  any. If no quotations are available for a particular security,
                  then the Valuation Agent's original calculation of Value
                  thereof will be used for that security.

         (iii)    ALTERNATIVE. Subject to item (iv) below, the provisions of
                  Paragraph 5 will apply.

Reference Number: FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>

         (iv)     MODIFICATION OF PARAGRAPH 5. The introductory paragraph of
                  Paragraph 5 shall be amended and restated to read in its
                  entirety as follows:

                           "If a party (a 'Disputing Party') disputes (I) the
                           Valuation Agent's calculation of a Delivery Amount or
                           a Return Amount or (II) the Value of any Transfer of
                           Eligible Credit Support or Posted Credit Support,
                           then:

                           (A)      the Disputing Party will (x) notify the
                                    other party and, if applicable, the
                                    Valuation Agent of the amount it is
                                    disputing, (y) indicate what it believes the
                                    correct amount to be and (z) provide a
                                    statement showing, in reasonable detail, how
                                    it arrived at such amount and the
                                    appropriate party will deliver the
                                    undisputed amount to the other party not
                                    later than (i) (a) the close of business on
                                    the Valuation Date, if the demand made under
                                    Paragraph 3 in the case of (I) above is made
                                    by the Notification Time, or (b) the close
                                    of business of the Local Business Day
                                    following the date on which the demand is
                                    made under Paragraph 3 in the case of (I)
                                    above, if such demand is made after the
                                    Notification Time, or (ii) the close of
                                    business of the date of Transfer, in the
                                    case of (II) above;

                           (B)      the parties will consult with each other and
                                    provide such information as the other party
                                    shall reasonably request in an attempt to
                                    resolve the dispute; and

                           (C)      if they fail to resolve the dispute by the
                                    Resolution Time, then:"

(g)      HOLDING AND USING POSTED COLLATERAL.

(i)      ELIGIBILITY TO HOLD POSTED COLLATERAL; CUSTODIANS.

                  (1) The Secured Party and its Custodian (if any) will be
                  entitled to hold Posted Collateral pursuant to Paragraph 6(b),
                  provided that the following conditions applicable to it are
                  satisfied:

                           (A) it is not a Defaulting Party;

                           (B) Posted Collateral consisting of Cash or
                           certificated securities that cannot be paid or
                           delivered by book-entry may be held only in any state
                           of the United States which has adopted the Uniform
                           Commercial Code;

                           (C) the short-term rating of any Custodian shall be
                           at least "A-1" by S&P

                  (2) There shall be no Custodian for Pledgor.

                  (ii)     USE OF POSTED COLLATERAL. The provisions of Paragraph
                           6(c) will not apply to Secured Party and Secured
                           Party will not have any right to use the Posted
                           Collateral or take any action specified in Paragraph
                           6(c).

(h)      DISTRIBUTIONS AND INTEREST AMOUNT.

                  (i)      INTEREST RATE. The "INTEREST RATE" will be the
                           "Federal Funds (Effective)" rate as such rate is
                           displayed on Telerate page 118 for such day under the
                           caption "Effective".

Reference Number: FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>

                  (ii)     AMENDMENT OF PARAGRAPH 6(d)(i) -- DISTRIBUTIONS.
                           Clause (d)(i) of Paragraph 6 shall be amended and
                           restated to read in its entirety as follows:

                           "(i)     Distributions. Subject to Paragraph 4(a), if
                                    Secured Party receives Distributions on a
                                    Local Business Day, it will Transfer to
                                    Pledgor not later than the following Local
                                    business Day any Distributions it receives
                                    to the extent that a Delivery Amount would
                                    not be created or increased by that
                                    Transfer, as calculated by the Valuation
                                    Agent (and the date of calculation will be
                                    deemed to be a Valuation Date for this
                                    purpose)."

                  (iii)    AMENDMENT OF PARAGRAPH 6(d)(II) - INTEREST AMOUNT.
                           Clause (d)(ii) of Paragraph 6 shall be amended and
                           restated to read in its entirety as follows:

                           "(ii)    INTEREST AMOUNT. In lieu of any interest,
                                    dividends or other amounts paid with respect
                                    to Posted Collateral in the form of Cash
                                    (all of which may be retained by the Secured
                                    Party), the Secured Party will Transfer to
                                    the Pledgor on the 20th day of each calendar
                                    month (or if such day is not a Local
                                    Business Day, the next Local Business Day)
                                    the Interest Amount. Any Interest Amount or
                                    portion thereof that has been received by
                                    the Secured Party and not Transferred
                                    pursuant to this Paragraph will constitute
                                    Posted Collateral in the form of Cash and
                                    will be subject to the security interest
                                    granted under Paragraph 2. For purposes of
                                    calculating the Interest Amount the amount
                                    of interest calculated for each day of the
                                    interest period shall be compounded
                                    monthly." Secured Party shall not be
                                    obligated to transfer any Interest Amount
                                    unless and until it has received such
                                    amount.

(i)      DEMANDS AND NOTICES.

         All demands, specifications and notices under this Annex will be made
         pursuant to the Notices Section of this Agreement.

(j)      ADDRESSES FOR TRANSFERS.

               Pledgor:          To be provided in writing by Pledgor to
                                 Secured Party.

               Secured Party:        LaSalle Bank National Association
                                     135 South LaSalle Street, Suite 1511
                                     Chicago, Illinois 60603
                                     Attention: Global Securities and Trust
                                     Services -- FFMER 2007-2
                                     Fax No. 312-904-1368
                                     Phone No. 312-992-0668

(k)      OTHER PROVISION(s).

                  (i)      AMENDMENT OF PARAGRAPH 7 - EVENTS OF DEFAULT. Clause
                           (iii) of Paragraph 7 shall not apply to Secured
                           Party.

                  (ii)     NON-RELIANCE. Notwithstanding the obligations of the
                           Secured Party under Paragraph 6(a), and without
                           limiting the generality of the final sentence of
                           Paragraph 6(a), each party, as Pledgor, acknowledges
                           that it has the means to

Reference Number: FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>

                           monitor all matters relating to all valuations,
                           payments, defaults and rights with respect to Posted
                           Collateral without the need to rely on the other
                           party, in its capacity as Secured Party, and that,
                           given the provisions of this Annex on substitution,
                           responsibility for the preservation of the rights of
                           the Pledgor with respect to all such matters is
                           reasonably allocated hereby to the Pledgor.

                  (iii)    AGREEMENT AS TO SINGLE SECURED PARTY AND PLEDGOR.
                           Each of Pledgor and Secured Party agree that,
                           notwithstanding anything to the contrary in the
                           recital to this Annex, Paragraph 1(b) or Paragraph 2
                           or the definitions in Paragraph 12, (a) the term
                           "Secured Party" as used in this Annex means only
                           Secured Party, (b) the term "Pledgor" as used in this
                           Annex means only Pledgor, (c) only Pledgor makes the
                           pledge and grant in Paragraph 2, the acknowledgement
                           in the final sentence of Paragraph 8(a) and the
                           representations in Paragraph 9 and (d) only Pledgor
                           will be required to make Transfers of Eligible Credit
                           Support hereunder.

                  (iv)     TRUSTEE. The Trustee is hereby authorized to (i) make
                           demands on behalf of the Secured Party pursuant to
                           Paragraph 3 hereunder and (ii) provide notice on
                           behalf of the Secured Party pursuant to Paragraph 7
                           hereunder.

                  (v)      COLLATERAL ACCOUNT. Secured Party shall at all times
                           maintain all Posted Collateral in a segregated trust
                           account pursuant to the Pooling and Servicing
                           Agreement.

                  (vi)     EXTERNAL CALCULATIONS. At any time at which Pledgor
                           (or, to the extent applicable, its Credit Support
                           Provider) does not have a long-term unsubordinated
                           and unsecured debt rating of at least "BBB+" from
                           S&P, the Valuation Agent shall (at its own expense)
                           obtain external calculations of the Secured Party's
                           Exposure from at least two Reference Market-makers on
                           the last Local Business Day of each calendar month.
                           Any determination of the S&P Collateral Amount shall
                           be based on the greatest of the Secured Party's
                           Exposure determined by the Valuation Agent and such
                           Reference Market-makers. Such external calculation
                           may not be obtained from the same Reference
                           Market-maker more than four times in any 12-month
                           period.

                  (vii)    NOTICE TO S&P. At any time at which Pledgor (or, to
                           the extent applicable, its Credit Support Provider)
                           does not have a long-term unsubordinated and
                           unsecured debt rating of at least "BBB+" from S&P,
                           the Valuation Agent shall provide to S&P not later
                           than the Notification Time on the Local Business Day
                           following each Valuation Date its calculations of the
                           Secured Party's Exposure and the Value of any
                           Eligible Credit Support or Posted Credit Support for
                           that Valuation Date. The Valuation Agent shall also
                           provide to S&P any external marks of the Secured
                           Party's Exposure.

                  (viii)   EXPENSES. Pledgor shall be responsible for all
                           reasonable costs and expenses incurred by Secured
                           Party in connection with the Transfer of any Eligible
                           Collateral under this Annex.

                  (ix)     ADDITIONAL DEFINED TERMS.

                  "DV01" means, with respect to a Transaction and any date of
                  determination, the sum of the estimated change in the Secured
                  Party's Exposure with respect to such Transaction that would
                  result from a one basis point change in the relevant swap
                  curve on such date,

Reference Number: FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>

                  as determined by the Valuation Agent in good faith and in a
                  commercially reasonable manner. The Valuation Agent shall,
                  upon request of Secured Party, provide to Secured Party a
                  statement showing in reasonable detail such calculation.

                  "MOODY'S FIRST LEVEL ADDITIONAL COLLATERALIZED AMOUNT" means,
                  with respect to any Transaction, the lesser of (x) the product
                  of 15 and DV01 for such Transaction and such Valuation Date
                  and (y) the product of (i) 2%, (ii) if a Scale Factor is
                  specified in such Transaction, the Scale Factor (as defined in
                  such Transaction) for such Transaction, or, if no Scale Factor
                  is specified in such Transaction, 1 and (iii) Notional Amount
                  for such Transaction for the Calculation Period which includes
                  such Valuation Date.

                  "MOODY'S FIRST LEVEL COLLATERAL AMOUNT" means, (A) for any
                  Valuation Date on which (I) a Moody's First Level Downgrade
                  has occurred and has been continuing (x) for at least 30 Local
                  Business Days or (y) since this Annex was executed and (II) it
                  is not the case that a Moody's Second Level Downgrade has
                  occurred and been continuing for at least 30 Local Business
                  Days, an amount equal to the greater of (a) zero and (b) the
                  sum of the Secured Party's aggregate Exposure for all
                  Transactions and the aggregate of Moody's First Level
                  Additional Collateralized Amounts for each Transaction and
                  (B)for any other Valuation Date, zero.

                  "MOODY'S FIRST LEVEL VALUE" means, for any date that the
                  Moody's First Level Collateral Amount is determined and the
                  Value of any Eligible Collateral or Posted Collateral that is
                  a security, the bid price for such security obtained by the
                  Valuation Agent multiplied by the Moody's First Level
                  Valuation Percentage for such security set forth on Schedule A
                  hereto.

                  "MOODY'S SECOND LEVEL ADDITIONAL COLLATERALIZED AMOUNT" means,
                  with respect to any Transaction,

                           (1) if such Transaction is not a Transaction-Specific
                           Hedge, the lesser of (i) the product of the 50 and
                           DV01 for such Transaction and such Valuation Date and
                           (ii) the product of (x) 8%, (y) if a Scale Factor is
                           specified in such Transaction, the Scale Factor (as
                           defined in such Transaction) for such Transaction,
                           or, if no Scale Factor is specified in such
                           Transaction, 1 and (z) the Notional Amount for such
                           Transaction for the Calculation Period (as defined in
                           the related Transaction) which includes such
                           Valuation Date; or

                           (2) if such Transaction is a Transaction-Specific
                           Hedge, the lesser of (i) the product of the 65 and
                           DV0 1 for such Transaction and such Valuation Date
                           and (ii) the product of (x) 10%, (y) if a Scale
                           Factor is specified in such Transaction, the Scale
                           Factor (as defined in such Transaction) for such
                           Transaction, or, if no Scale Factor is specified in
                           such Transaction, 1 and (z) the Notional Amount for
                           such Transaction for the Calculation Period (as
                           defined in the related Transaction) which includes
                           such Valuation Date.

                  "MOODY'S SECOND LEVEL COLLATERAL AMOUNT" means, (A) for any
                  Valuation Date on which it is the case that a Moody's Second
                  Level Downgrade has occurred and been continuing for at least
                  30 Local Business Days, an amount equal to the greatest of (a)
                  zero, (b) the aggregate amount of the Next Payments for all
                  Next Payment Dates and (c) the sum of the Secured Party's
                  aggregate Exposure and the aggregate of Moody's Second

Reference Number: FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>

                  Level Additional Collateralized Amounts for each Transaction
                  and (B) for any other Valuation Date, zero.

                  "MOODY'S SECOND LEVEL VALUE" means, for any date that the
                  Moody's Second Level Collateral Amount is determined and the
                  Value of any Eligible Collateral or Posted Collateral that is
                  a security, the bid price for such security obtained by the
                  Valuation Agent multiplied by the Moody's Second Level
                  Valuation Percentage for such security set forth on Schedule A
                  hereto.

                  "NEXT PAYMENT" means, in respect of each Next Payment Date,
                  the greater of (i) the amount of any payments due to be made
                  by the Pledgor pursuant to Section 2(a) on such Next Payment
                  Date less any payments due to be made by the Secured Party
                  under Section 2(a) on such Next Payment Date (in each case,
                  after giving effect to any applicable netting under Section
                  2(c)) and (ii) zero.

                  "NEXT PAYMENT DATE" means the next scheduled payment date
                  under any Transaction.

                  "REMAINING WEIGHTED AVERAGE MATURITY" means, with respect to a
                  Transaction, the expected weighted average maturity for such
                  Transaction as determined by the Valuation Agent.

                  "S&P COLLATERAL AMOUNT" means, (A) for any Valuation Date on
                  which a S&P First Level Downgrade has occurred and been
                  continuing for at least 30 days or on which a S&P Second Level
                  Downgrade has occurred and is continuing, an amount equal to
                  the sum of (1) 100.0% of the Secured Party's Exposure for such
                  Valuation Date and (2) the product of (x) the Volatility
                  Buffer for each Transaction (y) if a Scale Factor is specified
                  in such Transaction, the Scale Factor (as defined in such
                  Transaction) for such Transaction, or, if no Scale Factor is
                  specified in such Transaction, 1 and (z) the Notional Amount
                  of such Transaction for the Calculation Period (as defined in
                  the related Transaction) of such Transaction which includes
                  such Valuation Date, or (B) for any other Valuation Date,
                  zero.

                  "S&P VALUE" means, for any date that the S&P Collateral Amount
                  is determined and the Value of any Eligible Collateral or
                  Posted Collateral that is a security, the bid price for such
                  security obtained by the Valuation Agent multiplied by the S&P
                  Valuation Percentage for such security set forth on Schedule A
                  hereto.

                  "TRANSACTION-SPECIFIC HEDGE" means any Transaction that is a
                  cap, floor or swaption or a Transaction in respect of which
                  (x) the notional amount of the interest rate swap is "balance
                  guaranteed" or (y) the notional amount of the interest rate
                  swap for any Calculation Period otherwise is not a specific
                  dollar amount that is fixed at the inception of the
                  Transaction.

                  "VOLATILITY BUFFER" means, for any Transaction, the related
                  percentage set forth in the following table:

Reference Number: FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>

<Table>
<Caption>
The higher of the S&P              Remaining     Remaining      Remaining      Remaining
short-term credit rating of        Weighted       Weighted      Weighted       Weighted
(i) Pledgor and (ii) the            Average       Average        Average        Average
Credit Support Provider of        Maturity up   Maturity up    Maturity up    Maturity up
Pledgor, if applicable            to 3 years     to 5 years    to 10 years    to 30 years
<S>                               <C>           <C>            <C>            <C>
"A-2" or higher                      2.75%         3.25%          4.00%          4.75%
"A-3"                                3.25%         4.00%          5.00%          6.25%
"BB+" or lower                       3.50%         4.50%          6.75%          7.50%
</Table>

Reference Number: FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Annex on the
respective dates specified below with effect from the date specified on the
first page of this document.

BEAR STEARNS FINANCIAL PRODUCTS INC.    LASALLE BANK NATIONAL ASSOCIATION, NOT
                                        IN ITS INDIVIDUAL CAPACITY, BUT SOLELY
                                        AS TRUSTEE ON BEHALF OF MERRILL LYNCH
                                        FIRST FRANKLIN MORTGAGE LOAN TRUST,
                                        MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                        SERIES 2007-2

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

Reference Number: FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>

                                                                      SCHEDULE A

                               COLLATERAL SCHEDULE

THE MOODY'S FIRST LEVEL VALUATION PERCENTAGES SHALL BE USED IN DETERMINING THE
MOODY'S FIRST LEVEL COLLATERAL AMOUNT.

THE MOODY'S SECOND LEVEL VALUATION PERCENTAGES SHALL BE USED IN DETERMINING THE
MOODY'S SECOND LEVEL COLLATERAL AMOUNT.

THE S&P VALUATION PERCENTAGES SHALL BE USED IN DETERMINING THE S&P COLLATERAL
AMOUNT.

<Table>
<Caption>
  ISDA COLLATERAL ASSET                         MOODY'S FIRST LEVEL   MOODY'S SECOND LEVEL             S&P
 DEFINITION (ICAD) CODE    REMAINING MATURITY   VALUATION PERCENTAGE  VALUATION PERCENTAGE     VALUATION PERCENTAGE
 ----------------------    ------------------   --------------------  --------------------     --------------------
<S>                        <C>                  <C>                   <C>                      <C>
         US-CASH                   N/A                  100%                  100%                     100%
         EU-CASH                   N/A                  98%                    94%                    92.5%
         GB-CASH                   N/A                  98%                    95%                    94.1%

                                < 1 Year                100%                  100%                    98.9%
                              1 to 2 years              100%                   99%                    98.0%
        US-TBILL              2 to 3 years              100%                   98%                    97.4%
        US-TNOTE              3 to 5 years              100%                   97%                    95.5%
        US-TBOND              5 to 7 years              100%                   96%                    93.7%
      (fixed rate)            7 to 10 years             100%                   94%                    92.5%
                             10 to 20 years             100%                   90%                    91.1%
                               > 20 years               100%                   88%                    88.6%

        US-TBILL
        US-TNOTE
        US-TBOND             All Maturities             100%                   99%           Not Eligible Collateral
     (floating rate)

                                < 1 Year                100%                   99%                    98.5%
                              1 to 2 years              100%                   99%                    97.7%
                              2 to 3 years              100%                   98%                    97.3%
      GA-US-AGENCY            3 to 5 years              100%                   96%                    94.5%
      (fixed rate)            5 to 7 years              100%                   93%                    93.1%
                              7 to 10 years             100%                   93%                    90.7%
                             10 to 20 years             100%                   89%                    87.7%
                               > 20 years               100%                   87%                    84.4%

      GA-US-AGENCY
     (floating rate)         All Maturities             100%                   98%           Not Eligible Collateral

                                                Rated Aa3 or better    Rated Aa3 or better    Rated AAA or better by
                                                     by Moody's            by Moody's                  S&P
                                < 1 Year                98%                    94%                    98.8%
                              1 to 2 years              98%                    93%                    97.9%
     GA-EUROZONE-GOV          2 to 3 years              98%                    92%                    97.1%
  (other than EU-CASH)        3 to 5 years              98%                    90%                    91.2%
      (fixed rate)            5 to 7 years              98%                    89%                    87.5%
                              7 to 10 years             98%                    88%                    83.8%
                             10 to 20 years             98%                    84%                    75.5%
                               > 20 years               98%                    82%           Not Eligible Collateral

     GA-EUROZONE-GOV                            Rated Aa3 or better    Rated Aa3 or better    Rated AAA or better by
  (other than EU-CASH)                               by Moody's            by Moody's                  S&P
     (floating rate)         All Maturities             98%                    93%           Not Eligible Collateral

                                < 1 Year                98%                    94%           Not Eligible Collateral
                              1 to 2 years              98%                    93%           Not Eligible Collateral
        GA-GB-GOV             2 to 3 years              98%                    92%           Not Eligible Collateral
  (other than GB-CASH)        3 to 5 years              98%                    91%           Not Eligible Collateral
      (fixed rate)            5 to 7 years              98%                    90%           Not Eligible Collateral
                              7 to 10 years             98%                    89%           Not Eligible Collateral
                             10 to 20 years             98%                    86%           Not Eligible Collateral
</TABLE>

Reference Number: FXNEC9481, FXNEC9482 and FXNEC9483

<PAGE>

<TABLE>
<S>                          <C>                        <C>                    <C>           <C>
                               > 20 years               98%                    84%           Not Eligible Collateral

        GA-GB-GOV
  (other than GB-CASH)       All Maturities             98%                    94%           Not Eligible Collateral
     (floating rate)
</TABLE>

     The ISDA Collateral Asset Definition (ICAD) Codes used in this Collateral
     Schedule shall have the meanings set forth in the Collateral Asset
     Definitions (First Edition -- June 2003) as published and copyrighted in
     2003 by the International Swaps and Derivatives Association, Inc.

Reference Number: FXNEC9481, FXNEC9482 and FXNEC9483
<PAGE>

                                    EXHIBIT N

                                   [RESERVED]

                                       N-1

<PAGE>

                                    EXHIBIT O

                    FORM OF TRANSFEROR REPRESENTATION LETTER
               FOR TRANSFER TO REGULATION S BOOK-ENTRY CERTIFICATE
  FROM A HOLDER OF A RULE 144A BOOK-ENTRY CERTIFICATE OR DEFINITIVE CERTIFICATE

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Merrill Lynch First Franklin
Mortgage Loan Trust, Series 2007-2

RE: Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan Asset-Backed
    Certificates, Series 2007-2

Ladies and Gentlemen:

          In connection with our disposition of the Class ___ Certificates which
are held in the form of Definitive Certificates or in the form of a beneficial
interest in a Rule 144A Book-Entry Certificate and to effect the transfer
pursuant to Regulation S under the Securities Act of 1933, as amended
("Regulation S") of the above Certificates in exchange for an equivalent
beneficial interest in a Regulation S Book-Entry Certificate, we hereby certify
that such transfer has been effected in accordance with (i) the transfer
restrictions set forth in the Pooling and Servicing Agreement, dated as of April
1, 2007, among Merrill Lynch Mortgage Investors, Inc., as Depositor, LaSalle
Bank National Association, as Trustee, Home Loan Services, Inc., as Servicer,
and in the Certificates and (ii) in accordance with Regulation S, and that:

          a. the offer of the Certificates was not made to a person in the
United States;

          b. at the time the buy order was originated, the transferee was
outside the United States or we and any person acting on our behalf reasonably
believed that the transferee was outside the United States;

          c. no directed selling efforts have been made in contravention of the
requirements of Rule 903 or 904 of Regulation S, as applicable;

          d. the transaction is not part of a plan or scheme to evade the
registration requirements of the United States Securities Act of 1933, as
amended; and

          e. the transferee is not a U.S. Person (as defined by Regulation S).

          You are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal Proceedings or official inquiry

                                       O-1

<PAGE>

with respect to the matters covered hereby. Terms used in this certificate have
the meanings set forth in Regulation S.

Very truly yours,

Print Name of Transferor

By
   ----------------------------------
   Authorized Officer

                                       O-2

<PAGE>

                                    EXHIBIT P

                    FORM OF TRANSFEROR REPRESENTATION LETTER
               FOR TRANSFER PURSUANT TO RULE 144A FROM A HOLDER OF
         A REGULATION S BOOK-ENTRY CERTIFICATE OR DEFINITIVE CERTIFICATE

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Merrill Lynch First Franklin
Mortgage Loan Trust, Series 2007-2

RE: Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan Asset-Backed
    Certificates, Series 2007-2

Ladies and Gentlemen:

          In connection with our disposition of the Class __ Certificates which
are held in the form of Definitive Certificates or in the form of a beneficial
interest in a Regulation S Book-Entry Certificate and to effect the transfer
pursuant to Rule 144A under the Securities Act of 1933, as amended ("Rule 144A")
of the above Certificates in exchange for an equivalent beneficial interest in a
Rule 144A Book-Entry Certificate or a Definitive Note, we hereby certify that
such Certificates are being transferred in accordance with (i) the transfer
restrictions set forth in the Pooling and Servicing Agreement, dated as of April
1, 2007, among Merrill Lynch Mortgage Investors, Inc., as Depositor, La Salle
Bank National Association, as Trustee, Home Loan Services, Inc., as Servicer,
and in the Certificates and (ii) Rule 144A under the Securities Act of 1933, as
amended, to a transferee that we reasonably believe is purchasing the
Certificates for its own account or an account with respect to which the
transferee exercises sole investment discretion, the transferee and any such
account is a "qualified institutional buyer" within the meaning of Rule 144A, in
a transaction meeting the requirements of Rule 144A and in accordance with any
applicable securities laws of any state of the United States or any other
jurisdiction.

          You are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal Proceedings or official inquiry with respect to the
matters covered hereby.

Very truly yours,

Print Name of Transferor

By:
    ---------------------------------
    Authorized Officer

                                       P-1

<PAGE>

                                    EXHIBIT Q

                             FORM OF SWAP AGREEMENT

                                                                    BEAR STEARNS

                                            BEAR STEARNS FINANCIAL PRODUCTS INC.
                                                              383 MADISON AVENUE
                                                        NEW YORK, NEW YORK 10179
                                                                    212-272-4009

DATE:       April 26, 2007

TO:         LaSalle Bank National Association, not in its individual capacity,
            but solely as Supplemental Interest Trust Trustee on behalf of the
            Supplemental Interest Trust relating to the Merrill Lynch First
            Franklin Mortgage Loan Trust, Mortgage Loan Asset-Backed
            Certificates, Series 2007-2 Global Securities and Trust Services
            312-952-1816
ATTENTION:  312-904-1368
TELEPHONE:
FACSIMILE:  Derivatives Documentation
            212-272-9857
FROM:       212-272-9857
TELEPHONE:
FACSIMILE:  Fixed Income Derivatives Confirmation and Agreement

SUBJECT:    FXNSC9495

REFERENCE NUMBER:

The purpose of this letter agreement ("Agreement") is to confirm the terms and
conditions of the Transaction entered into on the Trade Date specified below
(the " Transaction") between Bear Stearns Financial Products Inc. ("Bear
Stearns") and LaSalle Bank National Association, not in its individual capacity,
but solely as Supplemental Interest Trust Trustee on behalf of the Supplemental
Interest Trust relating to the Merrill Lynch First Franklin Mortgage Loan Trust,
Mortgage Loan Asset-Backed Certificates, Series 2007-2 ("Counterparty").
Reference is hereby made to the Pooling and Servicing Agreement, dated as of
April 1, 2007, among Merrill Lynch Mortgage Investors, Inc., as depositor
("Depositor"), Home Loan Services, Inc., as servicer ("Servicer") and LaSalle
Bank National Association, as trustee ("Trustee") (the "Pooling and Servicing
Agreement"). This letter agreement constitutes the sole and complete
"Confirmation," as referred to in the "ISDA Master Agreement" (as defined
below), as well as a "Schedule" as referred to in the ISDA Master Agreement.

(1)     This Confirmation is subject to the 2000 ISDA Definitions (the
        "DEFINITIONS"), as published by the International Swaps and Derivatives
        Association, Inc. ("ISDA"). Any reference to a "Swap Transaction" in the
        Definitions is deemed to be a reference to a "Transaction" for purposes
        of this Agreement, and any reference to a "Transaction" in this
        Agreement is deemed to be a reference to a "Swap Transaction" for
        purposes of the Definitions. This Confirmation shall supplement, form a
        part of, and be subject to an agreement in the form of the ISDA Master
        Agreement (Multicurrency - Cross Border) as published and copyrighted in
        1992 by the International Swaps and Derivatives Association, Inc. (the
        "ISDA MASTER AGREEMENT"), as if Bear Stearns and Counterparty had
        executed an agreement in such form on the date hereof, with a Schedule
        as set forth in Item 3 of this Confirmation (the "SCHEDULE"), and an
        ISDA Credit Support Annex (Bilateral Form - ISDA Agreements Subject to
        New York Law Only version) as published and copyrighted in 1994 by the
        International Swaps and Derivatives Association, Inc., with Paragraph 13
        thereof as set forth in Annex A hereto (the "CREDIT

                                       Q-1

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 2 of 37

       SUPPORT ANNEX"). For the avoidance of doubt, the Transaction described
       herein shall be the sole Transaction governed by such ISDA Master
       Agreement. In the event of any inconsistency among any of the following
       documents, the relevant document first listed shall govern: (i) this
       Confirmation, exclusive of the provisions set forth in Item 3 hereof and
       Annex A hereto; (ii) the Schedule; (iii) the Credit Support Annex; (iv)
       the Definitions; and (v) the ISDA Master Agreement. Terms capitalized but
       not defined herein shall have the meanings attributed to them in the
       Pooling and Servicing Agreement

       Each reference herein to a "Section" (unless specifically referencing the
       Pooling and Servicing Agreement or to a "Section" of this Agreement will
       be construed as a reference to a Section of the ISDA Master Agreement;
       each herein reference to a "Part" will be construed as a reference to
       Schedule; each reference herein to a "Paragraph" will be construed as a
       reference to a Paragraph of the Credit Support Annex.

(2) The terms of the particular Transaction to which this Confirmation relates
are as follows:

       Notional Amount:             With respect to any Calculation Period, the
                                    amount set forth for such period on
                                    Schedule I attached hereto.

       Trade Date:                  April 24, 2007

       Effective Date:              October 25, 2007

       Termination Date:            April 25, 2012, provided, however, for
                                    the purposes of determining the Floating
                                    Amount to be paid in respect of the final
                                    Calculation Period, such date shall be
                                    subject to adjustment in accordance with the
                                    Business Day Convention.

       FIXED AMOUNT:

          Fixed Rate Payer:         Counterparty

          Fixed Rate Payer
          Period End Dates:         The 25th calendar day of each
                                    month during the Term of this Transaction,
                                    commencing November 25, 2007 and ending on
                                    the Termination Date, with No Adjustment.

          Fixed Rate Payer
          Payment Date:             Early Payment shall be applicable. One
                                    Business Day prior to each Fixed Rate Payer
                                    Period End Date.

          Fixed Rate:               5.10000%

          Fixed Rate Day

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 3 of 37

           Count Fraction:        30/360

FLOATING AMOUNTS:

           Floating Rate Payer:     Bear Stearns

           Floating Rate Payer
           Period End Dates:        The 25th calendar day of each month during
                                    the Term of this Transaction, commencing
                                    November 25, 2007 and ending on the
                                    Termination Date, subject to adjustment in
                                    accordance with the Business Day Convention.

           Floating Rate Payer
           Payment Dates:           Early Payment shall be applicable. One
                                    Business Day prior to each Floating Rate
                                    Payer Period End Date.

           Floating Rate for
           initial Calculation
           Period:                  To be determined.

           Floating Rate Option:    USD-LIBOR-BBA

           Designated Maturity:     One month

           Floating Rate Day
           Count Fraction:          Actual/360

           Reset Dates:             The first day of each Calculation Period.

           Compounding:             Inapplicable

           Business Days:           New York, Illinois and Pennsylvania

           Business Day
           Convention:              Following

           Calculation Agent:       Bear Stearns

(3) Provisions Deemed Incorporated in a Schedule to the ISDA Master Agreement:

Part 1. Termination Provisions.

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 4 of 37

For purposes of the ISDA Master Agreement:

(a)      "SPECIFIED ENTITY" will not apply to Bear Stearns or Counterparty for
         any purpose.

(b)      "SPECIFIED TRANSACTIONS" will not apply to Bear Stearns or Counterparty
         for any purpose.

(c)      The "FAILURE TO PAY OR DELIVER" provisions of Section 5(a)(i) will
         apply to Bear Stearns and will apply to Counterparty; provided that
         notwithstanding anything to the contrary in Section 5(a)(i) or
         Paragraph 7 of the Credit Support Annex, any failure by Bear Stearns to
         comply with or perform any obligation to be complied with or performed
         by Bear Stearns under the Credit Support Annex shall not constitute an
         Event of Default under Section 5(a)(i) unless (A) a Moody's Second
         Level Downgrade has occurred and been continuing for 30 or more Local
         Business Days and (B) such failure is not remedied on or before the
         third Local Business Day after notice of such failure is given to Bear
         Stearns.

(d)      The "BREACH OF AGREEMENT" provisions of Section 5(a)(ii) will apply to
         Bear Stearns and will not apply to Counterparty.

(e)      The "CREDIT SUPPORT DEFAULT" provisions of Section 5(a)(iii) will apply
         to (x) Bear Stearns; provided that notwithstanding anything to the
         contrary in Section 5(a)(iii)(1), any failure by Bear Stearns to comply
         with or perform any obligation to be complied with or performed by Bear
         Stearns under the Credit Support Annex shall not constitute an Event of
         Default under Section 5(a)(iii) unless (A) a Moody's Second Level
         Downgrade has occurred and been continuing for 30 or more Local
         Business Days and (B) such failure is not remedied on or before the
         third Local Business Day after notice of such failure is given to Bear
         Stearns and (y) Counterparty solely in respect of Counterparty's
         obligations under Paragraph 3(b) of the Credit Support Annex.

(f)      The "MISREPRESENTATION" provisions of Section 5(a)(iv) will apply to
         Bear Stearns and will not apply to Counterparty.

(g)      The "DEFAULT UNDER SPECIFIED TRANSACTION" provisions of Section 5(a)(v)
         will not apply to Bear Stearns or Counterparty.

(h)      The "CROSS DEFAULT" provisions of Section 5(a)(vi) will apply to Bear
         Stearns and will not apply to Counterparty.

                  "SPECIFIED INDEBTEDNESS" will have the meaning specified in
                  Section 14.

                  "THRESHOLD AMOUNT" means USD 100,000,000.

(i)      The "BANKRUPTCY" provisions of Section 5(a)(vii) will apply to Bear
         Stearns and will apply to Counterparty except that the provisions of
         Section 5(a)(vii)(2), (6) (to the extent that such provisions refer to
         any appointment contemplated or effected by the Pooling and Servicing
         Agreement or any appointment to which Counterparty has not become
         subject to), (7) and (9) will not apply to Counterparty; provided that,
         with respect to Counterparty only, Section 5(a)(vii)(4) is hereby
         amended by adding after the words "against it" the words "(excluding
         any proceeding or petition instituted or

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 5 of 37

         presented by Bear Stearns)", and Section 5(a)(vii)(8) is hereby amended
         by deleting the words "to (7) inclusive" and inserting lieu thereof ",
         (3), (4) as amended, (5) or (6) as amended".

(j)      The "Tax Event Upon Merger" provisions of Section 5(b)(iii) will apply
         to Bear Stearns and will apply to Counterparty; provided that Bear
         Stearns shall not be entitled to designate an Early Termination Date by
         reason of a Tax Event upon Merger in respect of which it is the
         Affected Party.

(k)      The "CREDIT EVENT UPON MERGER" provisions of Section 5(b)(iv) will not
         apply to Bear Stearns or Counterparty.

(1)      The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a) will not
         apply to Bear Stearns or to Counterparty.

(m)      Payments on Early Termination. For the purpose of Section 6(e) of the
         ISDA Master Agreement:

                  (1)      Market Quotation will apply; and

                  (2)      the Second Method will apply;

                  provided that if Bear Stearns is the Defaulting Party or the
                  sole Affected Party, the following provisions will apply:

                           (A) Section 6(e) of the ISDA Master Agreement will be
                           amended by inserting on the first line "or is
                           effectively designated" after "If an Early
                           Termination Date occurs";

                           (B) The definition of Market Quotation in Section 14
                           shall be deleted in its entirety and replaced with
                           the following:

                                    "MARKET QUOTATION" means, with respect to
                                    one or more Terminated Transactions, and a
                                    party making the determination, an amount
                                    determined on the basis of Firm Offers from
                                    Reference Market-makers that are Eligible
                                    Replacements. Each Firm Offer will be (1)
                                    for an amount that would be paid to
                                    Counterparty (expressed as a negative
                                    number) or by Counterparty (expressed as a
                                    positive number) in consideration of an
                                    agreement between Counterparty and such
                                    Reference Market-maker to enter into a
                                    Replacement Transaction and (2) made on the
                                    basis that Unpaid Amounts in respect of the
                                    Terminated Transaction or group of
                                    Transactions are to be excluded but, without
                                    limitation, any payment or delivery that
                                    would, but for the relevant Early
                                    Termination Date, have been required
                                    (assuming satisfaction of each applicable
                                    condition precedent) after that Early
                                    Termination Date is to be included. The
                                    party making the determination (or its
                                    agent) will request each Reference
                                    Market-maker to provide its Firm Offer to
                                    the extent reasonably practicable as of the
                                    same day and time (without regard to
                                    different time zones) on or as soon as
                                    reasonably practicable after the designation
                                    or occurrence of the relevant Early
                                    Termination Date. The day and time as of
                                    which those Firm Offers are to be obtained
                                    will be selected in good faith by

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 6 of 37

                                    the party obliged to make a determination
                                    under Section 6(e), and, if each party is so
                                    obliged, after consultation with the other.
                                    The Market Quotation shall be the Firm Offer
                                    actually accepted by Counterparty no later
                                    than the Business Day preceding the Early
                                    Termination Date. If no Firm Offers are
                                    provided by the Business Day preceding the
                                    Early Termination Date, it will be deemed
                                    that the Market Quotation in respect of such
                                    Terminated Transaction or group of
                                    Transactions cannot be determined.

                           (C) Counterparty shall use best efforts to accept a
                           Firm Offer that would determine the Market Quotation.
                           If more than one Firm Offer (which, if accepted,
                           would determine the Market Quotation) is provided,
                           Counterparty shall accept the Firm Offer (among such
                           Firm Offers) which would require either (x) the
                           lowest payment by the Counterparty to the Reference
                           Market-maker, to the extent Counterparty would be
                           required to make a payment to the Reference
                           Market-maker or (y) the highest payment from the
                           Reference Market-maker to Counterparty, to the extent
                           the Reference Market-maker would be required to make
                           a payment to the Counterparty. If only one Firm Offer
                           (which, if accepted, would determine the Market
                           Quotation) is provided, Counterparty shall accept
                           such Firm Offer.

                           (D) Upon the written request by Counterparty to Bear
                           Stearns, Bear Stearns shall obtain the Market
                           Quotations on behalf of Counterparty.

                           (E) If the Settlement Amount is a negative number,
                           Section 6(e)(i)(3) of the ISDA Master Agreement shall
                           be deleted in its entirety and replaced with the
                           following:

                                    "(3) Second Method and Market Quotation. If
                                    the Second Method and Market Quotation
                                    apply, (I) Counterparty shall pay to Bear
                                    Stearns an amount equal to the absolute
                                    value of the Settlement Amount in respect of
                                    the Terminated Transactions, (II)
                                    Counterparty shall pay to Bear Stearns the
                                    Termination Currency Equivalent of the
                                    Unpaid Amounts owing to Bear Stearns and
                                    (III) Bear Stearns shall pay to Counterparty
                                    the Termination Currency Equivalent of the
                                    Unpaid Amounts owing to Counterparty;
                                    provided, however, that (x) the amounts
                                    payable under the immediately preceding
                                    clauses (II) and (III) shall be subject to
                                    netting in accordance with Section 2(c) of
                                    this Agreement and (y) notwithstanding any
                                    other provision of this Agreement, any
                                    amount payable by Bear Stearns under the
                                    immediately preceding clause (III) shall not
                                    be netted-off against any amount payable by
                                    Counterparty under the immediately preceding
                                    clause (I)."

(n)      "TERMINATION CURRENCY" means United States Dollars.

(o)      ADDITIONAL TERMINATION EVENTS. Additional Termination Events will
         apply:

         (i)      If, upon the occurrence of a Swap Disclosure Event (as defined
                  in Part 5(1)(ii) below) Bear Stearns has not, within ten (10)
                  calendar days after such Swap Disclosure Event complied with
                  any of the provisions set forth in Part 5 (1) below, then an
                  Additional Termination Event shall

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 7 of 37

have occurred with respect to Bear Stearns, Bear Stearns shall be the sole
Affected Party and all Transactions hereunder shall be Affected Transaction.

(ii)     If, without the prior written consent of Bear Stearns where such
         consent is required under the Pooling and Servicing Agreement, an
         amendment or supplemental agreement is made to the Pooling and
         Servicing Agreement which amendment or supplemental agreement could
         reasonably be expected to have a material adverse effect on the
         interests of Bear Stearns under this Agreement, an Additional
         Termination Event shall have occurred with respect to Counterparty,
         Counterparty shall be the sole Affected Party and all Transactions
         hereunder shall be Affected Transaction.

(iii)    If the Supplemental Interest Trust Trustee is unable to pay, or fails
         or admits in writing its inability to pay, on any Distribution Date,
         any principal or interest with respect to the Class A Certificates or
         of the ultimate payment of principal with respect to the Class A
         Certificates, in either case to the extent required pursuant to the
         terms of the Pooling and Servicing Agreement to be paid to the Class A
         Certificates on such Distribution Date, then an Additional Termination
         Event shall have occurred with respect to Counterparty, Counterparty
         shall be the sole Affected Party and all Transactions hereunder shall
         be Affected Transaction.

(iv)     (A)      If a S&P First Level Downgrade has occurred and is continuing
                  and Bear Stearns fails to take any action described under Part
                  (5)(f)(i)(1), within the time period specified therein, then
                  an Additional Termination Event shall have occurred with
                  respect to Bear Stearns, Bear Stearns shall be the sole
                  Affected Party with respect to such Additional Termination
                  Event and all Transactions hereunder shall be Affected
                  Transaction.

         (B)      If a S&P Second Level Downgrade has occurred and is continuing
                  and Bear Stearns fails to take any action described under Part
                  (5)(f)(i)(2) within the time period specified therein, then an
                  Additional Termination Event shall have occurred with respect
                  to Bear Stearns, Bear Stearns shall be the sole Affected Party
                  with respect to such Additional Termination Event and all
                  Transactions hereunder shall be Affected Transaction.

         (C)      If (A) a Moody's Second Level Downgrade has not occurred and
                  been continuing for 30 or more Local Business Days and (B)
                  Bear Stearns has failed to comply with or perform any
                  obligation to be complied with or performed by Bear Stearns in
                  accordance with the Credit Support Annex, then an Additional
                  Termination Event shall have occurred with respect to Bear
                  Stearns and Bear Stearns shall be the sole Affected Party with
                  respect to such Additional Termination Event.

         (D)      If (A) a Moody's Second Level Downgrade has occurred and been
                  continuing for 30 or more Local Business Days and (B) either
                  (i) at least one Eligible Replacement has made a Firm Offer to
                  be the transferee or (ii) at least one entity that satisfies
                  the Moody's Approved Ratings Threshold has made a Firm Offer
                  to provide an Eligible Guaranty in respect of all of Bear
                  Stearns' present and future obligations under this Agreement,
                  then an Additional

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 8 of 37

                             Termination Event shall have occurred with respect
                             to Bear Stearns, Bear Stearns shall be the sole
                             Affected Party with respect to such Additional
                             Termination Event and all Transactions hereunder
                             shall be Affected Transaction.

(v) The acceptance by the of a bid in connection with an Auction Call pursuant
to Section 9.01 of the Pooling and Servicing Agreement shall constitute an
Additional Termination Event with respect to Counterparty with Counterparty as
the sole Affected Party with respect to such Additional Termination Event;
provided that notwithstanding anything in the first sentence of Section 6(d)(ii)
of the ISDA Master Agreement to the contrary, the amount calculated as being due
in respect of such Additional Termination Event shall be payable on the
Distribution Date upon which the final distribution is made to the
Certificateholders.

Part 2. Tax Matters.

(a)      Tax Representations.

         (i) Payer Representations. For the purpose of Section 3(e) of the ISDA
         Master Agreement, each of Bear Stearns and the Counterparty will make
         the following representations:

         It is not required by any applicable law, as modified by the practice
         of any relevant governmental revenue authority, of any Relevant
         Jurisdiction to make any deduction or withholding for or on account of
         any Tax from any payment (other than interest under Section 2(e),
         6(d)(ii) or 6(e) of the ISDA Master Agreement) to be made by it to the
         other party under this Agreement. In making this representation, it may
         rely on:

                  (1) the accuracy of any representations made by the other
                  party pursuant to Section 3(f) of the ISDA Master Agreement;

                  (2) the satisfaction of the agreement contained in Sections
                  4(a)(i) and 4(a)(iii) of the ISDA Master Agreement and the
                  accuracy and effectiveness of any document provided by the
                  other party pursuant to Sections 4(a)(i) and 4(a)(iii) of the
                  ISDA Master Agreement; and

                  (3) the satisfaction of the agreement of the other party
                  contained in Section 4(d) of the ISDA Master Agreement,
                  provided that it shall not be a breach of this representation
                  where reliance is placed on clause (ii) and the other party
                  does not deliver a form or document under Section 4(a)(iii) of
                  the ISDA Master Agreement by reason of material prejudice to
                  its legal or commercial position.

         (ii) Payee Representations. For the purpose of Section 3(f) of the ISDA
         Master Agreement, each of Bear Stearns and the Counterparty make the
         following representations.

         The following representation will apply to Bear Stearns:

                  Bear Stearns is a corporation organized under the laws of the
                  State of Delaware and its U.S. taxpayer identification number
                  is 13-3 8663 07.

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 9 of 37

         The following representation will apply to the Counterparty:

                  LaSalle Bank National Association represents that it is the
                  Supplemental Interest Trust Trustee pursuant to the Pooling
                  and Servicing Agreement.

(b)      Tax Provisions.

         Notwithstanding the definition of "Indemnifiable Tax" in Section 14 of
         this Agreement, all Taxes in relation to payments by Bear Stearns shall
         be Indemnifiable Taxes (including any Tax imposed in respect of a
         Credit Support Document) unless (i) such Taxes are assessed directly
         against Counterparty and not by deduction or withholding by Bear
         Stearns or (ii) arise as a result of a Change in Tax Law (in which case
         such Tax shall be an Indemnifiable Tax only if such Tax satisfies the
         definition of Indemnifiable Tax provided in Section 14). In relation to
         payments by Counterparty, no Tax shall be an Indemnifiable Tax.

Part 3. AGREEMENT TO DELIVER DOCUMENTS. For the purpose of Section 4(a) of the
ISDA Master Agreement:

         (i)      Tax forms, documents, or certificates to be delivered are:

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 10 of 37

<TABLE>
<CAPTION>
PARTY REQUIRED TO      FORM/DOCUMENT/                DATE BY WHICH TO
DELIVER DOCUMENT       CERTIFICATE                   BE DELIVERED
<S>                    <C>                           <C>
Bear Stearns           An original properly          (i) upon execution of this
                       completed and executed        Agreement, (ii) on or
                       United States Internal        before the first payment
                       Revenue Service Form W-9      date under this Agreement,
                       (or any successor thereto)    including any Credit
                       with respect to any           Support Document, (iii)
                       payments received or to be    promptly upon the
                       received by Bear Stearns,     reasonable demand by
                       that eliminates U.S.          Counterparty, (iv) prior
                       federal withholding and       to the expiration or
                       backup withholding Tax on     obsolescence of any
                       payments to Bear Stearns      previously delivered form,
                       under this Agreement.         and (v) promptly upon the
                                                     information on any such
                                                     previously delivered form
                                                     becoming inaccurate or
                                                     incorrect.

Counterparty           An original properly          (i) on or before the first
                       completed and executed        payment date under this
                       United States Internal        Agreement, including any
                       Revenue Service Form W-9      Credit Support Document,
                       (or any successor thereto)    (ii) prior to the
                       with respect to any           expiration or obsolescence
                       payments received or to be    of any previously
                       received by Counterparty.     delivered form, and (iii)
                                                     promptly upon the
                                                     information on any such
                                                     previously delivered form
                                                     becoming inaccurate or
                                                     incorrect.
</TABLE>

(ii) Other documents to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED      FORM/DOCUMENT/                     DATE BY WHICH TO    COVERED BY
TO DELIVER          CERTIFICATE                        BE DELIVERED        SECTION
DOCUMENT                                                                   3(d)
                                                                           REPRESENTATION
<S>                 <C>                                <C>                 <C>
Bear Stearns and    Any documents required by the      Upon the            Yes
the Counterparty    receiving party to                 execution and
                                                       delivery of this
                    evidence the authority of the
                    delivering party or its Credit     Agreement and such
                    Support Provider, if any, for
                    it to execute and deliver this     Confirmation
                    Agreement, any

                    Confirmation, and any Credit
                    Support Documents to which it
                    is a party, and to evidence
                    the authority of the
                    delivering party or its Credit
</TABLE>

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 11 of 37

<TABLE>
<CAPTION>
PARTY REQUIRED     FORM/DOCUMENT/                DATE BY WHICH TO        COVERED BY SECTION
TO DELIVER         CERTIFICATE                   BE DELIVERED            3(D) REPRESENTATION
DOCUMENT
<S>                <C>                           <C>                     <C>
                   Support Provider to perform
                   its obligations under this
                   Agreement, such Confirmation
                   and/or Credit Support
                   Document, as the case may be

Bear Stearns and   A certificate of an           Upon the execution and  Yes
the Counterparty   authorized officer of the     delivery of this
                   party, as to the incumbency   Agreement and such
                   and authority of the          Confirmation
                   respective officers of the
                   party signing this
                   Agreement, any relevant
                   Credit Support Document,
                   or any Confirmation, as the
                   case may be

Bear Stearns and   An opinion of counsel of      Upon the execution and  No
the Counterparty   such party regarding the      delivery of this
                   enforceability of this        Agreement
                   Agreement in a form
                   reasonably satisfactory to
                   the other party.

Counterparty       An executed copy of the       Promptly upon receipt   No
                   Pooling and Servicing         by the Counterparty of
                   Agreement.                    the Pooling and
                                                 Servicing Agreement
</TABLE>

Part 4 Miscellaneous.

(a)      ADDRESS FOR NOTICES: For the purposes of Section 12(a) of the ISDA
         Master Agreement:

                  Address for notices or communications to Bear Stearns:

                           Address: 383 Madison Avenue, New York, New York 10179

<PAGE>
Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 12 of 37

           Attention:     DPC Manager
           Facsimile:     (212) 272-5823

      with a copy to:

           Address:       One Metrotech Center North, Brooklyn, New York 11201
           Attention:     Derivative Operations - 7th Floor
           Facsimile:     (212) 272-1634

      (For all purposes)

      Address for notices
                          or communications to the Counterparty:
           Address:
                          LaSalle Bank National Association
                          135 South LaSalle Street, Suite 1511
                          Chicago, Illinois 60603
           Attention:     Global Securities and Trust Services -- FFMER 2007-2
           Facsimile:     312-904-1368
           Phone:         312-992-0668

      with a copy to:
                          Merrill Lynch Mortgage Lending Inc.
           Address:
                          4 World Financial Center
                          350 Vesey Street
                          New York, NY 10080
           Attention:     Alan Chan
           Facsimile:     212-738-1110
           Phone:         212-449-1441

      (For all purposes)

(b)  Account Details and Settlement Information:

     PAYMENTS TO BEAR STEARNS:
          Citibank, N.A., New York
          ABA Number: 021-0000-89, for the account of
          Bear, Stearns Securities Corp.
          Account Number: 0925-3186, for further credit
          to Bear Stearns Financial Products Inc.
          Sub-account Number: 102-04654-1-3
          Attention: Derivatives Department

     PAYMENTS TO COUNTERPARTY:
          LaSalle Bank N.A.
          ABA Number: 071000505
          Account Number: Trust Acct # 724693.2
          Account Name: LaSalle CHGO/CTR/BNF:/LaSalle Trust

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 13 of 37

(c)     PROCESS AGENT. For the purpose of Section 13(c) of the ISDA Master
        Agreement:

               Bear Stearns appoints as its
               Process Agent:      Not Applicable

               The Counterparty appoints as its Process
               Agent:              NotApplicable

(d)      OFFICES. The provisions of Section 10(a) of the ISDA Master Agreement
         will not apply to this Agreement; neither Bear Stearns nor the
         Counterparty have any Offices other than as set forth in the Notices
         Section.

(e)      MULTIBRANCH PARTY. For the purpose of Section 10(c) of the ISDA Master
         Agreement:

         Bear Stearns is not a Multibranch Party.

         The Counterparty is not a Multibranch Party.

(f)      CREDIT SUPPORT DOCUMENT.

         Bear Stearns: The Credit Support Annex and any guaranty in support of
         Bear Stearns' obligations under this Agreement.

         Counterparty: The Credit Support Annex.

(g)      CREDIT SUPPORT PROVIDER.

         Bear Stearns: The guarantor under any guaranty in support of Bear
         Stearns' obligations under this Agreement.

         Counterparty: Not Applicable

(h)      GOVERNING LAW. The parties to this Agreement hereby agree that the law
         of the State of New York shall govern their rights and duties in whole,
         without regard to the conflict of law provisions thereof other than New
         York General Obligations Law Sections 5-1401 and 5-1402.

(i)      JURISDICTION. Section 13(b) is hereby amended by: (i) deleting in the
         second line of subparagraph (i) thereof the word "non-", (ii) deleting
         "; and" from the end of subparagraph 1 and inserting "." in lieu
         thereof, and (iii) deleting the final paragraph thereof

(j)      "AFFILIATE": Bear Stearns and Counterparty shall be deemed not to have
         any Affiliates for purposes of this Agreement, including for purposes
         of Section 6(b)(ii) of the ISDA Master Agreement.

(k)      NETTING OF PAYMENTS. The parties agree that subparagraph (ii) of
         Section 2(c) of the ISDA Master Agreement will apply to each
         Transaction.

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 14 of 37

Part 5. OTHER PROVISIONS.

(a) Section 3 of the ISDA Master Agreement is hereby amended by adding at the
end thereof the following subsection (g):

         "(g)     Relationship Between Parties.

                  Each party represents to the other party on each date when it
                  enters into a Transaction that:

         (1)      Nonreliance. (i) It is acting for its own account, (ii) it is
                  not relying on any statement or representation of the other
                  party regarding the Transaction (whether written or oral),
                  other than the representations expressly made in this
                  Agreement or the Confirmation in respect of that Transaction
                  and (iii) it has consulted with its own legal, regulatory,
                  tax, business, investment, financial and accounting advisors
                  to the extent it has deemed necessary, (iv) it has made its
                  own investment, hedging and trading decisions based upon its
                  own judgment and upon any advice from such advisors as it has
                  deemed necessary and not upon any view expressed by the other
                  party, (v) it has made its own independent decisions to enter
                  into the Transaction and as to whether the Transaction is
                  appropriate or proper for it based upon its own judgment and
                  upon advice from such advisors as it has deemed necessary,
                  (vi) it is not relying on any communication (written or oral)
                  of the other party as investment advice or as a recommendation
                  to enter into this Transaction; it being understood that
                  information and explanations related to the terms and
                  conditions of this Transaction shall not be considered
                  investment advice or a recommendation to enter into this
                  Transaction and (vii) it has not received from the other party
                  any assurance or guaranty as to the expected results of this
                  Transaction.

         (2)      Evaluation and Understanding.

                  (i)      It has the capacity to evaluate (internally or
                           through independent professional advice) the
                           Transaction and has made its own decision to enter
                           into the Transaction; and

                  (ii)     It understands the terms, conditions and risks of the
                           Transaction and is willing and able to accept those
                           terms and conditions and to assume those risks,
                           financially and otherwise.

         (3)      Purpose. It is entering into the Transaction for the purposes
                  of managing its borrowings or investments, hedging its
                  underlying assets or liabilities or in connection with a line
                  of business.

         (4)      Status of Parties. The other party is not acting as an agent,
                  fiduciary or advisor for it in respect of the Transaction.

         (5)      Eligible Contract Participant. It constitutes an "eligible
                  contract participant" as such term is defined in Section
                  1(a)12 of the Commodity Exchange Act, as amended.

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 15 of 37

         (6)      Line of Business. It has entered into this Agreement
                  (including each Transaction governed hereby) in conjunction
                  with its line of business or the financing of its business."

(b) NON-RECOURSE. Notwithstanding any provision herein or in the ISDA Master
Agreement to the contrary, the obligations of Counterparty hereunder are limited
recourse obligations of Counterparty, payable solely from the Swap Account and
the proceeds thereof, in accordance with the terms of the Pooling and Servicing
Agreement. In the event that the Swap Account and proceeds thereof should be
insufficient to satisfy all claims outstanding and following the realization of
the Swap Account and the proceeds thereof, any claims against or obligations of
Counterparty under the ISDA Master Agreement or any other confirmation
thereunder still outstanding shall be extinguished and thereafter not revive.
The Supplemental Interest Trust Trustee shall not have liability for any failure
or delay in making a payment hereunder to Bear Stearns due to any failure or
delay in receiving amounts in the Swap Account from the Trust created pursuant
to the Pooling and Servicing Agreement.

(c) SEVERABILITY. If any term, provision, covenant, or condition of this
Agreement, or the application thereof to any party or circumstance, shall be
held to be invalid or unenforceable (in whole or in part) for any reason, the
remaining terms, provisions, covenants, and conditions hereof shall continue in
full force and effect as if this Agreement had been executed with the invalid or
unenforceable portion eliminated, so long as this Agreement as so modified
continues to express, without material change, the original intentions of the
parties as to the subject matter of this Agreement and the deletion of such
portion of this Agreement will not substantially impair the respective benefits
or expectations of the parties.

The parties shall endeavor to engage in good faith negotiations to replace any
invalid or unenforceable term, provision, covenant or condition with a valid or
enforceable term, provision, covenant or condition, the economic effect of which
comes as close as possible to that of the invalid or unenforceable term,
provision, covenant or condition.

(d) CONSENT TO RECORDING. Each party hereto consents to the monitoring or
recording, at any time and from time to time, by the other party of any and all
communications between officers or employees of the parties, waives any further
notice of such monitoring or recording, and agrees to notify its officers and
employees of such monitoring or recording.

(e) WAIVER OF JURY TRIAL. Each party waives any right it may have to a trial by
jury in respect of any Proceedings relating to this Agreement or any Credit
Support Document.

(f) RATING AGENCY

DOWNGRADE. (i) S&P Downgrade:

         (1)      In the event that a S&P First Level Downgrade occurs and is
                  continuing, then within 30 days after such rating downgrade,
                  Bear Stearns shall, subject to the Rating Agency Condition
                  with respect to S&P, at its own expense, either (i) procure a
                  Permitted Transfer, (ii) obtain an Eligible Guaranty or (iii)
                  post collateral in accordance with the Credit Support Annex.

         (2)      In the event that a S&P Second Level Downgrade occurs and is
                  continuing, then within 10 Local Business Days after such
                  rating withdrawal or downgrade, Bear Stearns shall, subject to

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 16 of 37

                  the Rating Agency Condition with respect to S&P, at its own
                  expense, either (i) procure a Permitted Transfer or (ii)
                  obtain an Eligible Guaranty.

(ii)     Moody's Downgrade.

         (1)      In the event that a Moody's Second Level Downgrade occurs and
                  is continuing, Bear Stearns shall as soon as reasonably
                  practicable thereafter, at its own expense and using
                  commercially reasonable efforts, either (i) procure a
                  Permitted Transfer or (ii) obtain an Eligible Guaranty.

(g) PAYMENT INSTRUCTIONS. Bear Stearns hereby agrees that, unless notified in
writing by the Supplemental Interest Trust Trustee of other payment
instructions, any and all amounts payable by Bear Stearns to the Counterparty
under this Agreement shall be paid to the Supplemental Interest Trust Trustee at
the account specified herein.

(h) AMENDMENT.. No amendment, waiver, supplement or other modification of this
Transaction shall be permitted by either party unless (i) each of S&P and
Moody's have been provided notice of the same and (ii) such amendment, waiver,
supplement, assignment or other modification satisfies the Rating Agency
Condition.

(i) TRANSFER.

         (i)      The first paragraph of Section 7 is hereby amended in its
                  entirety as follows:

                  "Subject to Section 6(b)(ii), Part 5(f) and Part 5(j), neither
                  this Agreement nor any interest or obligation in or under this
                  Agreement may be transferred (whether by way of security or
                  otherwise) without (a) the prior written consent of the other
                  party (which consent shall be deemed given by Counterparty if
                  the transfer, novation or assignment is to an Eligible
                  Replacement) and (b) satisfaction of the Rating Agency
                  Condition with respect to S&P, except that:"

         (ii)     If an entity has made a Firm Offer (which remains an offer
                  that will become legally binding upon acceptance by
                  Counterparty) to be the transferee of a transfer, Counterparty
                  shall, at Bear Stearns' written request and at Bear Stearns'
                  expense, take any reasonable steps required to be taken by
                  Counterparty to effect such transfer.

(j) TRANSFER TO AVOID TERMINATION EVENT. Section 6(b)(ii) is hereby amended by
(i) deleting the words "or if a Tax Event Upon Merger occurs and the Burdened
Party is the Affected Party," and (ii) deleting the last paragraph thereof and
inserting the following:

         "Notwithstanding anything to the contrary in Section 7 (as amended
         herein) and Part 5(i), any transfer by Bear Stearns under this Section
         6(b)(ii) shall not require the consent of Counterparty; provided that:

         (i)      the transferee (the "Transferee") is an Eligible Replacement;

         (ii)     if the Transferee is domiciled in a different country or
                  political subdivision thereof from both Bear Stearns and
                  Counterparty, such transfer satisfies the Rating Agency
                  Condition;

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 17 of 37

         (iii)    the Transferee will not, as a result of such transfer, be
                  required on the next succeeding Scheduled Payment Date to
                  withhold or deduct on account of any Tax (except in respect of
                  default interest) amounts in excess of that which Bear Stearns
                  would, on the next succeeding Scheduled Payment Date have been
                  required to so withhold or deduct unless the Transferee would
                  be required to make additional payments pursuant to Section
                  2(d) (i)(4) corresponding to such excess;

         (iv)     a Termination Event or Event of Default does not occur as a
                  result of such transfer; and

         (v)      the Transferee confirms in writing that it will accept all of
                  the interests and obligations in and under this Agreement
                  which are to be transferred to it in accordance with the terms
                  of this provision.

         On and from the effective date of any such transfer to the Transferee,
         Bear Stearns will be fully released from any and all obligations
         hereunder."

(k) PROCEEDINGS. Bear Stearns shall not institute against or cause any other
person to institute against, or join any other person in instituting against,
the Supplemental Interest Trust Trustee or the Supplemental Interest Trust
created pursuant to the Pooling and Servicing Agreement, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any federal or state bankruptcy, dissolution or similar law,
for a period of one year and one day (or, if longer, the applicable preference
period) following indefeasible payment in full of the Certificates (the
"Certificates").

(1) COMPLIANCE WITH REGULATION AB.

         (i)      Bear Stearns agrees and acknowledges that Merrill Lynch
                  Mortgage Investors, Inc. (the "DEPOSITOR") is required under
                  Regulation AB as defined under the Pooling and Servicing
                  Agreement, to disclose certain financial information regarding
                  Bear Stearns or its group of affiliated entities, if
                  applicable, depending on the aggregate "significance
                  percentage" of this Agreement and any other derivative
                  contracts between Bear Stearns or its group of affiliated
                  entities, if applicable, and Counterparty, as calculated from
                  time to time in accordance with Item 1115 of Regulation AB.

         (ii)     It shall be a swap disclosure event ("SWAP DISCLOSURE EVENT")
                  if, on any Business Day after the date hereof, the Depositor
                  requests from Bear Stearns the applicable financial
                  information described in Item 1115 of Regulation AB (such
                  request to be based on a reasonable determination by
                  Depositor, in good faith, that such information is required
                  under Regulation AB) (the "Swap FINANCIAL DISCLOSURE").

         (iii)    Upon the occurrence of a Swap Disclosure Event, Bear Stearns,
                  within 10 calendar days, at its own expense, shall (1)(a)
                  either (i) provide to Depositor the current Swap Financial
                  Disclosure in an EDGAR-compatible format (for example, such
                  information may be provided in Microsoft Word(R) or Microsoft
                  Excel(R) format but not in .pdf format) or (ii) provide
                  written consent to Depositor to incorporation by reference of
                  such current Swap Financial Disclosure that are filed with the
                  Securities and Exchange Commission in the reports of the Trust
                  filed pursuant to the Exchange Act, (b) if applicable, cause
                  its outside accounting firm to provide its consent to filing
                  or incorporation by reference of such accounting firm's report
                  relating to their audits of such current Swap Financial
                  Disclosure in the Exchange Act Reports of the Depositor, and
                  (c) provide to the Depositor any updated Swap Financial
                  Disclosure with respect to Bear Stearns or any entity that
                  consolidates Bear Stearns

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 18 of 37

                  within five days of the release of any such updated Swap
                  Financial Disclosure; (2) secure another entity to replace
                  Bear Stearns as party to this Agreement on terms substantially
                  similar to this Agreement, which entity (or a guarantor
                  therefor) meets or exceeds the Moody's Approved Ratings
                  Thresholds and S&P Approved Ratings Threshold and which
                  satisfies the Rating Agency Condition and which entity is able
                  to comply with the requirements of Item 1115 of Regulation AB,
                  or (3) obtain a guaranty of Bear Stearns' obligations under
                  this Agreement from an affiliate of Bear Stearns that is able
                  to comply with the financial information disclosure
                  requirements of Item 1115 of Regulation AB, and cause such
                  affiliate to provide Swap Financial Disclosure and any future
                  Swap Financial Disclosure, such that disclosure provided in
                  respect of such affiliate will satisfy any disclosure
                  requirements applicable to the Swap Provider.

         (iv)     Bear Stearns agrees that, in the event that Bear Stearns
                  provides Swap Financial Disclosure to Depositor in accordance
                  with Part 5(1)(iii)(1) or causes its affiliate to provide Swap
                  Financial Disclosure to Depositor in accordance with clause
                  Part 5(1)(iii)(3), it will indemnify and hold harmless
                  Depositor, its respective directors or officers and any person
                  controlling Depositor, from and against any and all losses,
                  claims, damages and liabilities caused by any untrue statement
                  or alleged untrue statement of a material fact contained in
                  such Swap Financial Disclosure or caused by any omission or
                  alleged omission to state in such Swap Financial Disclosure a
                  material fact required to be stated therein or necessary to
                  make the statements therein, in light of the circumstances
                  under which they were made, not misleading.

         (v)      If the Depositor or the Trustee reasonably requests, Bear
                  Stearns shall provide such other information as may be
                  necessary for Depositor to comply with Item 1115 of Regulation
                  AR

         (vi)     Each of the Depositor and the Trustee shall be an express
                  third party beneficiary of this Agreement as if a party hereto
                  to the extent of the Trustee's and the Depositor's rights
                  explicitly specified in this Part 5(1).

(m) SUPPLEMENTAL INTEREST TRUST TRUSTEE LIABILITY LIMITATIONS. It is expressly
understood and agreed by the parties hereto that (a) this Agreement is executed
and delivered by LaSalle Bank National Association ("LaSalle") not in its
individual capacity, but solely as Supplemental Interest Trust Trustee under the
Pooling and Servicing Agreement in the exercise of the powers and authority
conferred and invested in it thereunder; (b) LaSalle has been directed pursuant
to the Pooling and Servicing Agreement to enter into this Agreement and to
perform its obligations hereunder; (c) each of the representations, warranties,
covenants, undertakings and agreements herein made on behalf of the Supplemental
Interest Trust is made and intended not as personal representations,
undertakings and agreements by LaSalle but is made and intended for the purpose
of binding only the Supplemental Interest Trust; and (d) nothing herein
contained shall be construed as creating any liability on LaSalle, individually
or personally, to perform any covenant either expressed or implied contained
herein, all such liability, if any, being expressly waived by the parties who
are signatories to this Agreement and by any person claiming by, through or
under such parties and (e) under no circumstances shall LaSalle, individually,
be personally liable for the payment of any indemnity, indebtedness, fees or
expenses of the Supplemental Interest Trust or be liable for the breach or
failure of any obligations, representation, warranty or covenant made or
undertaken by the Supplemental Interest Trust under this Agreement.

(n) SUBSTANTIAL FINANCIAL TRANSACTION. Each party hereto is hereby advised and
acknowledges that the other party has engaged in (or refrained from engaging in)
substantial financial transactions and has taken (or refrained from taking)
other material actions in reliance upon the entry by the parties into the
Transaction being

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 19 of 37

entered into on the terms and conditions set forth herein and in the
Confirmation relating to such Transaction, as applicable. This paragraph shall
be deemed repeated on the trade date of each Transaction.

(o) SET-OFF. Except as expressly provided for in Section 2(c), Section 6 or Part
1(m)(E) hereof, and notwithstanding any other provision of this Agreement or any
other existing or future agreement, each party irrevocably waives any and all
rights it may have to set off, net, recoup or otherwise withhold or suspend or
condition payment or performance of any obligation between it and the other
party hereunder against any obligation between it and the other party under any
other agreements. Section 6(e) shall be amended by deleting the following
sentence: "The amount, if any, payable in respect of an Early Termination Date
and determined pursuant to this Section will be subject to any Set-off"

(p) COUNTERPARTS. This Agreement may be executed in several counterparts, each
of which shall be deemed an original but all of which together shall constitute
one and the same instrument.

(q)ADDITIONAL DEFINED TERMS.

         (i)      Capitalized terms used but nor defined herein shall have the
                  meanings ascribed to such terms in the Pooling and Servicing
                  Agreement.

         (ii)     Additional Definitions:

                  "ELIGIBLE GUARANTY" means an unconditional and irrevocable
                  guaranty of all present and future payment obligations and
                  obligations to post collateral of Bear Stearns or an Eligible
                  Replacement to Counterparty under this Agreement that is
                  provided by an Eligible Guarantor as principal debtor rather
                  than surety and that is directly enforceable by Counterparty,
                  the form and substance of which guaranty are subject to the
                  Rating Agency Condition with respect to S&P.

                  "ELIGIBLE GUARANTOR" means an entity that has credit ratings
                  at least equal to the Moody's Required Ratings Threshold and
                  S&P Approved Ratings Threshold.

                  "ELIGIBLE REPLACEMENT" means an entity that either (i)
                  satisfies the S&P Approved Ratings Threshold and the Moody's
                  Required Ratings Threshold or (ii) provides an Eligible
                  Guaranty from an Eligible Guarantor.

                  "FIRM OFFER" means an offer which, when made, is capable of
                  becoming legally binding upon acceptance.

                  "MOODY'S" means Moody's Investors Service, Inc., or any
                  successor.

                  "MOODY'S APPROVED RATINGS THRESHOLD" means, with respect to
                  (i) Bear Stearns, a Moody's counterparty rating of "Al" or
                  above and (ii) with respect to any other entity (or its
                  guarantor), (x) if such entity has both a long-term unsecured
                  and unsubordinated debt rating or counterparty rating from
                  Moody's and a short-term unsecured and unsubordinated debt
                  rating from Moody's, a long-term unsecured and unsubordinated
                  debt rating or counterparty rating from Moody's of "A2" or
                  above and a short-term unsecured and unsubordinated debt
                  rating from Moody's of "Prime-1" or above, or (y) if such
                  entity has only a long-term unsecured and unsubordinated debt
                  rating or counterparty rating from

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 20 of 37

                  Moody's, a long-term unsecured and unsubordinated debt rating
                  or counterparty rating from Moody's of "Al" or above.

                  "MOODY'S FIRST LEVEL DOWNGRADE" means that no Relevant Entity
                  satisfies the Moody's Approved Rating Threshold.

                  "MOODY'S REQUIRED RATINGS THRESHOLD" means, with respect to
                  (i) Bear Stearns, a counterparty rating of "A3" or above and
                  (ii) with respect to any other entity (or its guarantor), (x)
                  if such entity has both a long-term unsecured and
                  unsubordinated debt rating or counterparty rating from Moody's
                  and a short-term unsecured and unsubordinated debt rating from
                  Moody's, a long-term unsecured and unsubordinated debt rating
                  or counterparty rating from Moody's of "A3" or above or a
                  short-term unsecured and unsubordinated debt rating from
                  Moody's of "Prime-2" or above, or (y) if such entity has only
                  a long-term unsecured and unsubordinated debt rating or
                  counterparty rating from Moody's, a long-term unsecured and
                  unsubordinated debt rating or counterparty rating from Moody's
                  of "A3" or above.

                  "MOODY'S SECOND LEVEL DOWNGRADE" means that no Relevant Entity
                  satisfies the Moody's Required Ratings Threshold.

                  "PERMITTED TRANSFER" means a transfer by novation by Bear
                  Stearns to an entity (the "TRANSFEREE") of all, but not less
                  than all, of Bear Stearns' rights, liabilities, duties and
                  obligations under this Agreement, with respect to which
                  transfer each of the following conditions is satisfied: (a)
                  the Transferee is an Eligible Replacement that is a recognized
                  dealer in interest rate swaps organized under the laws of the
                  United States of America or a jurisdiction located in the
                  United States of America (or another jurisdiction reasonably
                  acceptable to Counterparty), (b) an Event of Default or
                  Termination Event would not occur as a result of such
                  transfer, (c) pursuant to a written instrument (the "TRANSFER
                  AGREEMENT"), the Transferee acquires and assumes all rights
                  and obligations of Bear Stearns under the Agreement and the
                  relevant Transaction, (d) Bear Stearns will be responsible for
                  any costs or expenses incurred in connection with such
                  transfer (including any replacement cost of entering into a
                  replacement transaction); (e) either (A) Moody's has been
                  given prior written notice of such transfer and the Rating
                  Agency Condition is satisfied with respect to S&P or (B) each
                  Rating Agency has been given prior written notice of such
                  transfer and such transfer is in connection with the
                  assignment and assumption of this Agreement without
                  modification of its terms, other than party names, dates
                  relevant to the effective date of such transfer, tax
                  representations and any other representations regarding the
                  status of the substitute counterparty, notice information and
                  account details and other similar provisions; and (f) such
                  transfer otherwise complies with the terms of the Pooling and
                  Servicing Agreement.

                  "RATING AGENCY" means each of Moody's and S&P.

                  "RATING AGENCY CONDITION" means, with respect to any
                  particular proposed act or omission to act hereunder that the
                  party acting or failing to act must consult with each Rating
                  Agency then providing a rating of the Certificates and receive
                  from each such Rating Agency a prior written confirmation that
                  the proposed action or inaction would not cause a downgrade or
                  withdrawal of its then-current rating of the Certificates.
<PAGE>
Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 21 of 37

     "RELEVANT ENTITY" means Bear Stearns and any Eligible Guarantor under an
     Eligible Guaranty with respect to Bear Stearns.

     "REPLACEMENT TRANSACTION" means, with respect to any Terminated Transaction
     or group of Terminated Transactions, a transaction or group of transactions
     that (i) would have the effect of preserving for Counterparty the economic
     equivalent of any payment or delivery (whether the underlying obligation
     was absolute or contingent and assuming the satisfaction of each applicable
     condition precedent) by the parties under Section 2(a)(i) in respect of
     such Terminated Transaction or group of Terminated Transactions that would,
     but for the occurrence of the relevant Early Termination Date, have been
     required after that Date, and (ii) has terms which are substantially the
     same as this Agreement, including, without limitation, rating triggers,
     Regulation AB compliance, and credit support documentation, as determined
     by Counterparty in its sole discretion, acting in a commercially reasonable
     manner.

     "S&P" means Standard & Poor's, a division of The McGraw-Hill Companies,
     Inc.

     "S&P APPROVED RATINGS THRESHOLD" means with respect to (i) Bear Stearns, a
     counterparty rating of "A+" or above and (ii) with respect to any other
     entity (or its guarantor), a short-term unsecured and unsubordinated debt
     rating from S&P of "A-1" or above, or, if such entity does not have a
     short-term unsecured and unsubordinated debt rating from S&P, a long-term
     unsecured and unsubordinated debt rating from S&P of "A+ or above.

     "S&P FIRST LEVEL DOWNGRADE" means that no Relevant Entity satisfies the S&P
     Approved Rating Threshold.

     "S&P REQUIRED RATINGS THRESHOLD" means with respect to (i) Bear Stearns, a
     counterparty rating of "BBB" or above and (ii) with respect to any other
     entity (or its guarantor), a long-term unsecured and unsubordinated debt
     rating from S&P of "BBB-" or above.

     "S&P SECOND LEVEL DOWNGRADE" means that no Relevant Entity satisfies the
     S&P Required Rating Thresholds.

(r) AGENT FOR COUNTERPARTY. Bear Stearns acknowledges that Counterparty has
appointed the Supplemental Interest Trust Trustee as its agent under Pooling and
Servicing Agreement to carry out certain functions on behalf of Counterparty,
and that the Supplemental Interest Trust Trustee shall be entitled to give
notices and to perform and satisfy the obligations of Counterparty hereunder on
behalf of Counterparty.

(s) RATING AGENCY NOTIFICATIONS. Except as otherwise provided herein, no Early
Termination Date shall be effectively designated hereunder shall be made by
either party unless each Rating Agency has been given prior written notice of
such designation.

(t) Merrill Lynch Mortgage Lending, Inc. ("MLML") agrees and acknowledges that
amounts paid hereunder are not intended to benefit the holder of any class of
certificates rated by any rating agency if such holder is MLML or any of its
affiliates. If MLML or any of its affiliates receives any such amounts, it will
promptly remit (or, if such amounts are received by an affiliate of MLML, MLML
hereby agrees that it will cause such affiliate to promptly remit) such amounts
to the Supplemental Interest Trust Trustee, whereupon such Supplemental Interest
Trust Trustee will promptly remit such amounts to Bear Stearns. MLML further

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 22 of 37

agrees to provide notice to Bear Stearns upon any remittance to the Supplemental
Interest Trust Trustee; such delivery will be made to:

          Address:    383 Madison Avenue, New York, New York 10179
          Attention:  DPC Manager
          Facsimile:  212-272-5823

          with a copy to:

          Address:    One Metrotech Center North, Brooklyn, New York 11201
          Attention:  Derivative Operations - 7th Floor
          Facsimile:  212-272-1634

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 23 of 37

     NEITHER THE BEAR STEARNS COMPANIES INC. NOR ANY SUBSIDIARY OR AFFILIATE OF
     THE BEAR STEARNS COMPANIES INC. OTHER THAN BEAR STEARNS IS AN OBLIGOR OR A
     CREDIT SUPPORT PROVIDER ON THIS AGREEMENT.

This Agreement may be executed in several counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument.

Counterparty hereby agrees to check this Confirmation and to confirm that the
foregoing correctly sets forth the terms of the Transaction by signing in the
space provided below and returning to Bear Stearns a facsimile of the
fully-executed Confirmation to 212-272-9857. For inquiries regarding U.S.
Transactions, please contact DERIVATIVES DOCUMENTATION by telephone at
212-272-2711. For all other inquiries please contact DERIVATIVES DOCUMENTATION
by telephone at 353-1-402-6233. Originals will be provided for your execution
upon your request.

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 24 of 37

We are very pleased to have executed this Transaction with you and we look
forward to completing other transactions with you in the near future.

Very truly yours,

BEAR STEARNS FINANCIAL PRODUCTS INC.

By: _____________________________________________
    Name:
    Title:

Counterparty, acting through its duly authorized signatory, hereby agrees to,
accepts and confirms the terms of the foregoing as of the Trade Date.

LASALLE BANK NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY, BUT SOLELY AS
SUPPLEMENTAL INTEREST TRUST TRUSTEE ON BEHALF OF THE SUPPLEMENTAL INTEREST TRUST
RELATING TO THE MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, MORTGAGE LOAN
ASSET-BACKED CERTIFICATES, SERIES 2007-2

By: _____________________________________________
    Name:
    Title:

Section 5(t) Acknowledged By:
MERRILL LYNCH MORTGAGE LENDING, INC.

By: ________________________________________________
   Name:
   Title:

er

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 25 of 37

                                   SCHEDULE I
(where for the purposes of (i) determining Floating Amounts, all such dates
subject to adjustment in accordance with the Following Business Day Convention
and (ii) determining Fixed Amounts, all such dates subject to No Adjustment.)

<Table>
<Caption>
FROM AND INCLUDING    TO BUT EXCLUDING      NOTIONAL AMOUNT
                                                 (USD)
<S>                  <C>                  <C>
Effective Date           11/25/07            1,752,924,694
   11/25/07              12/25/07            1,717,400,505
   12/25/07              01/25/08            1,680,314,543
   01/25/08              02/25/08            1,640,633,790
   02/25/08              03/25/08            1,594,474,619
   03/25/08              04/25/08            1,543,548,663
   04/25/08              05/25/08            1,485,112,443
   05/25/08              06/25/08            1,430,737,445
   06/25/08              07/25/08            1,380,475,717
   07/25/08              08/25/08            1,333,459,779
   08/25/08              09/25/08            1,289,702,721
   09/25/08              10/25/08            1,248,580,757
   10/25/08              11/25/08            1,209,938,811
   11/25/08              12/25/08            1,173,205,419
   12/25/08              01/25/09            1,138,817,320
   01/25/09              02/25/09            1,105,914,059
   02/25/09              03/25/09             964,602,753
   03/25/09              04/25/09             829,955,413
   04/25/09              05/25/09             718,633,548
   05/25/09              06/25/09             634,131,354
   06/25/09              07/25/09             585,407,230
   07/25/09              08/25/09             547,171,529
   08/25/09              09/25/09             515,790,234
   09/25/09              10/25/09             487,115,605
   10/25/09              11/25/09             460,335,836
   11/25/09              12/25/09             435,916,682
   12/25/09              01/25/10             413,727,100
   01/25/10              02/25/10             393,356,492
   02/25/10              03/25/10             382,407,000
   03/25/10              04/25/10             381,875,813
   04/25/10              05/25/10             348,771,978
   05/25/10              06/25/10             321,498,980
   06/25/10              07/25/10             299,081,256
   07/25/10              08/25/10             280,821,286
   08/25/10              09/25/10             264,475,232
   09/25/10              10/25/10             249,209,348
</TABLE>

<PAGE>

Reference Number: FXNSC9495
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust
relating to the Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-2 April 26, 2007
Page 26 of 37

<TABLE>
<S>                    <C>                      <C>
      10/25/10              11/25/10              235,757,854
      11/25/10              12/25/10              223,608,052
      12/25/10              01/25/11              212,430,928
      01/25/11              02/25/11              202,053,364
      02/25/11              03/25/11              192,063,597
      03/25/11              04/25/11              182,270,370
      04/25/11              05/25/11              172,975,292
      05/25/11              06/25/11              164,348,242
      06/25/11              07/25/11              156,616,932
      07/25/11              08/25/11              149,377,628
      08/25/11              09/25/11              142,714,396
      09/25/11              10/25/11              136,198,146
      10/25/11              11/25/11              130,194,529
      11/25/11              12/25/11              124,542,071
      12/25/11              01/25/12              119,213,276
      01/25/12              02/25/12              114,228,411
      02/25/12              03/25/12              109,555,941
      03/25/12           Termination Date         105,102,481
</Table>
<PAGE>
                             ANNEX A

UNILATERAL CSA SCHEDULE'

Pledgor: BEAR STEARNS FINANCIAL PRODUCTS INC. (the "Pledgor")
Secured Party: LASALLE BANK NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL
CAPACITY, BUT SOLELY AS SUPPLEMENTAL INTEREST TRUST TRUSTEE ON BEHALF OF THE
SUPPLEMENTAL INTEREST TRUST RELATING TO THE MERRILL LYNCH FIRST FRANKLIN
MORTGAGE LOAN TRUST, MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2007-2 (the
"Secured Party")

PARAGRAPH 13. ELECTIONS AND VARIABLES

(a)   SECURITY INTEREST FOR "OBLIGATIONS". The term "Obligations" as used in
      this Annex includes no "additional obligations" within the meaning of
      Paragraph 12.

(b)   CREDIT SUPPORT OBLIGATIONS. (i) DELIVERY AMOUNT, RETURN AMOUNT AND

        CREDIT SUPPORT AMOUNT.

           (1) DELIVERY AMOUNT. Paragraph 3(a) shall be amended by replacing the
        words "upon a demand made by the Secured Party on or promptly following
        a Valuation Date" with the words "on each Valuation Date". The "DELIVERY
        AMOUNT" with respect to Pledgor for any Valuation Date shall equal the
        greatest of:

            (A) the amount by which the S&P Collateral Amount exceeds the S&P
            Value on such Valuation Date of all Posted Credit Support held by
            the Secured Party;

            (B) the amount by which the Moody's First Level Collateral Amount
            exceeds the Moody's First Level Value on such Valuation Date of all
            Posted Credit Support held by the Secured Party.

            (C) the amount by which the Moody's Second Level Collateral Amount
            exceeds the Moody's Second Level Value on such Valuation Date of all
            Posted Credit Support held by the Secured Party.

           (2) "RETURN AMOUNT" applicable to Secured Party for any Valuation
        Date shall equal the least of:

            (A) the amount by which the S&P Value on such Valuation Date of all
            Posted Credit Support held by the Secured Party exceeds the S&P
            Collateral Amount;

            (B) the amount by which the Moody's First Level Value on such
            Valuation Date of all Posted Credit Support held by the Secured
            Party exceeds the Moody's First Level Collateral Amount.

            (C) the amount by which the Moody's Second Level Value on such
            Valuation Date of all Posted Credit Support held by the Secured
            Party exceeds the Moody's Second Level Collateral Amount.

-----

i    If currency hedge, update Moody's Collateral Amounts and Valuation
     Percentages

<PAGE>

           (3) "CREDIT SUPPORT AMOUNT" shall be deleted in its entirety.

        (ii)ELIGIBLE COLLATERAL The items set forth on the Collateral Schedule
        attached as Schedule A hereto will qualify as "ELIGIBLE COLLATERAL" for
        the party specified.

        (iii) OTHER ELIGIBLE SUPPORT None (iv) THRESHOLDS.

        (A)"INDEPENDENT AMOUNT" means:
           Pledgor: Not applicable.
           Secured Party: Not applicable.

        (B)"THRESHOLD" means:
           Pledgor: Not applicable.
           Secured Party: Not applicable.

        (C)"MINIMUM TRANSFER AMOUNT" means USD100,000; provided, that if the
           aggregate Certificate Principal Balance of Certificates rated by S&P
           is less than USD 50,000,000, the "Minimum Transfer Amount" shall mean
           USD 50,000.

        (D)ROUNDING. The Delivery Amount will be rounded up and the Return
           Amount will be rounded down to the nearest integral multiple of USD
           10,000.

(c)VALUATION AND TIMING.

      (i)   "VALUATION AGENT" means Pledgor.

      (ii)  "VALUATION DATE" means each Local Business Day'.

      (iii) "VALUATION TIME" means the close of business on the Local Business
            Day in the city where the Valuation Agent is located immediately
            preceding the Valuation Date or date of calculation, as applicable;
            provided that the calculations of Value and Exposure will be made as
            of approximately the same time on the same date.

      (iv)  "NOTIFICATION TIME" means 11:00 A.M. (New York time).

      (v)   TRANSFER TIMING AND CALCULATIONS. Paragraphs 4(b) and 4(c) are
            hereby amended and restated in entirety as set forth below.

               "(b) TRANSFER TIMING. Subject to Paragraphs 4(a) and 5 and unless
               otherwise specified, if a demand for the Transfer of Eligible
               Credit Support or Posted Credit Support is made by the
               Notification Time, then the relevant Transfer will be made not
               later than the close of business on the Valuation Date; if a
               demand is made after the Notification Time, then the relevant
               Transfer will be made not later than the close of business on the
               next Local Business Day thereafter.

               (c) CALCULATIONS. All calculations of Value and Exposure for
               purposes of Paragraphs 3 and 6(d) will be made by the Valuation
               Agent as of the Valuation Time. The Valuation Agent will notify
               each party (or the other party, if the

--------

ii   If not daily valuations, changes are required in the collateral amounts and
     valuation percentages

<PAGE>

               Valuation Agent is a party) of its calculations not later than
               the Notification Time on the applicable Valuation Date (or in the
               case of Paragraph 6(d), the Local Business Day following the day
               on which such relevant calculations are performed)."

(d)   CONDITIONS PRECEDENT. There shall be no "Specified Condition" with respect
      to either party for purposes of this Annex.

(e)  SUBSTITUTION

      (i)   "SUBSTITUTION DATE" means (A) the Local Business Day on which the
            Secured Party receives the Substitute Credit Support, if notice of
            substitution is received by the Notification Time on such date, and
            (B) the Local Business Day following the date on which the Secured
            Party receives the Substitute Credit Support, if notice of
            substitution is received after the Notification Time.

      (ii)  CONSENT OF SECURED PARTY FOR SUBSTITUTION. Inapplicable.

      (iii) AMENDMENT OF PARAGRAPH 4(d)(II). Paragraph 4(d)(ii) is amended and
            restated in its entirety as set forth below:

          "(ii) subject to Paragraph 4(a) of this Annex, the Secured Party will
          Transfer the items of Posted Credit Support specified by the Pledgor
          in its notice not later than the close of business on the Substitution
          Date, provided, however, that if the Secured Party shall not have
          received the Substitute Credit Support prior to 1:00 P.M. (New York
          time) on the Substitution Date, then the Secured Party shall Transfer
          the applicable items of Posted Credit Support not later than the close
          of business on the Local Business Day immediately following the day on
          which the Secured Party receives the Substitute Credit Support.
          Notwithstanding the foregoing, the Secured Party will only be
          obligated to Transfer Posted Credit Support with a Value as of the
          Substitution Date equal to the Value of the Substitute Credit Support
          delivered by the Pledgor in exchange therefor."

(f)DISPUTE RESOLUTION.

      (i)   "RESOLUTION TIME" means 12:00 noon, New York time, on the Local
            Business Day for both parties following the date the Disputing Party
            gives notice of a dispute pursuant to Paragraph 5.

      (ii)  VALUE. For the purpose of Paragraphs 5(i)(C) and 5(ii), disputes
            over the Value of Posted Credit Support will be resolved by the
            Valuation Agent seeking bid-side quotations as of the relevant
            Recalculation Date or date of Transfer, as applicable, from three
            parties that regularly act as dealers in the securities in question.
            The Value will be the arithmetic mean of the quotations obtained by
            the Valuation Agent, multiplied by the applicable Valuation
            Percentage, if any. If no quotations are available for a particular
            security, then the Valuation Agent's original calculation of Value
            thereof will be used for that security.

      (iii) ALTERNATIVE. Subject to item (iv) below, the provisions of Paragraph
            5 will apply.

      (iv)  MODIFICATION OF PARAGRAPH 5. The introductory paragraph of Paragraph
            5 shall be amended and restated to read in its entirety as follows:

          "If a party (a 'Disputing Party') disputes (I) the Valuation Agent's
          calculation of a Delivery Amount or a Return Amount or (II) the Value
          of any Transfer of Eligible

<PAGE>

          Credit Support or Posted Credit Support, then:

          (A) the Disputing Party will (x) notify the other party and, if
          applicable, the Valuation Agent of the amount it is disputing, (y)
          indicate what it believes the correct amount to be and (z) provide a
          statement showing, in reasonable detail, how it arrived at such amount
          and the appropriate party will deliver the undisputed amount to the
          other party not later than (i) (a) the close of business on the
          Valuation Date, if the demand made under Paragraph 3 in the case of
          (I) above is made by the Notification Time, or (b) the close of
          business of the Local Business Day following the date on which the
          demand is made under Paragraph 3 in the case of (I) above, if such
          demand is made after the Notification Time, or (ii) the close of
          business of the date of Transfer, in the case of (II) above;

          (B) the parties will consult with each other and provide such
          information as the other party shall reasonably request in an attempt
          to resolve the dispute; and

          (C) if they fail to resolve the dispute by the Resolution Time, then:"

(g)  HOLDING AND USING POSTED COLLATERAL

(i)  ELIGIBILITY TO HOLD POSTED COLLATERAL; CUSTODIANS.

        (1) The Secured Party and its Custodian (if any) will be entitled to
        hold Posted Collateral pursuant to Paragraph 6(b), provided that the
        following conditions applicable to it are satisfied:

          (A) it is not a Defaulting Party;

          (B) Posted Collateral consisting of Cash or certificated securities
          that cannot be paid or delivered by book-entry may be held only in any
          state of the United States which has adopted the Uniform Commercial
          Code;

          (C) the short-term rating of any Custodian shall be at least "A-1" by
          S&P

        (2) There shall be no Custodian for Pledgor.

      (ii)  USE OF POSTED COLLATERAL The provisions of Paragraph 6(c) will not
            apply to Secured Party and Secured Party will not have any right to
            use the Posted Collateral or take any action specified in Paragraph
            6(c).

(h)DISTRIBUTIONS AND INTEREST AMOUNT

      (i)   INTEREST RATE. The "INTEREST RATE" will be the "Federal Funds
            (Effective)" rate as such rate is displayed on Telerate page 118 for
            such day under the caption "Effective".

      (ii)  AMENDMENT OF PARAGRAPH 6(d)(i) -- DISTRIBUTIONS. Clause (d)(i) of
            Paragraph 6 shall be amended and restated to read in its entirety as
            follows:

<PAGE>
      "(i) Distributions. Subject to Paragraph 4(a), if Secured Party receives
      Distributions on a Local Business Day, it will Transfer to Pledgor not
      later than the following Local business Day any Distributions it receives
      to the extent that a Delivery Amount would not be created or increased by
      that Transfer, as calculated by the Valuation Agent (and the date of
      calculation will be deemed to be a Valuation Date for this purpose). "

      (iii) AMENDMENT OF PARAGRAPH 6(d)(II) - INTEREST AMOUNT Clause (d)(ii) of
            Paragraph 6 shall be amended and restated to read in its entirety as
            follows:

      "(II) INTEREST AMOUNT. In lieu of any interest, dividends or other amounts
      paid with respect to Posted Collateral in the form of Cash (all of which
      may be retained by the Secured Party), the Secured Party will Transfer to
      the Pledgor on the 20th day of each calendar month (or if such day is not
      a Local Business Day, the next Local Business Day) the Interest Amount.
      Any Interest Amount or portion thereof that has been received by the
      Secured Party and not Transferred pursuant to this Paragraph will
      constitute Posted Collateral in the form of Cash and will be subject to
      the security interest granted under Paragraph 2. For purposes of
      calculating the Interest Amount the amount of interest calculated for each
      day of the interest period shall be compounded monthly." Secured Party
      shall not be obligated to transfer any Interest Amount unless and until it
      has received such amount.

(i)DEMANDS AND NOTICES.

    All demands, specifications and notices under this Annex will be made
    pursuant to the Notices Section of this Agreement.

    ADDRESSES FOR TRANSFERS.

        Pledgor:         To be provided in writing by Pledgor to Secured Party.

        Secured Party:   LaSalle Bank National Association
                         135 South LaSalle Street, Suite 1511
                         Chicago, Illinois 60603
                         Attention: Global Securities and Trust Services --
                                    FFMER 2007-2
                         Fax No. 312-904-1368 Phone No. 312-992-0668

(k)OTHER PROVISION(s).

      (i)   AMENDMENT OF PARAGRAPH 7 - EVENTS OF DEFAULT. Clause (iii) of
            Paragraph 7 shall not apply to Secured Party.

      (ii)  NON-RELIANCE. Notwithstanding the obligations of the Secured Party
            under Paragraph 6(a), and without limiting the generality of the
            final sentence of Paragraph 6(a), each party, as Pledgor,
            acknowledges that it has the means to monitor all matters relating
            to all valuations, payments, defaults and rights with respect to
            Posted Collateral without the need to rely on the other party, in
            its capacity as Secured Party, and that, given the provisions of
            this Annex on substitution, responsibility for the preservation of
            the rights of the Pledgor with respect to all such matters is
            reasonably allocated hereby to the Pledgor.

<PAGE>

      (iii) AGREEMENT AS TO SINGLE SECURED PARTY AND PLEDGOR. Each of Pledgor
            and Secured Party agree that, notwithstanding anything to the
            contrary in the recital to this Annex, Paragraph 1(b) or Paragraph 2
            or the definitions in Paragraph 12, (a) the term "Secured Party" as
            used in this Annex means only Secured Party, (b) the term "Pledgor"
            as used in this Annex means only Pledgor, (c) only Pledgor makes the
            pledge and grant in Paragraph 2, the acknowledgement in the final
            sentence of Paragraph 8(a) and the representations in Paragraph 9
            and (d) only Pledgor will be required to make Transfers of Eligible
            Credit Support hereunder.

      (iv)  TRUSTEE. The Trustee is hereby authorized to (i) make demands on
            behalf of the Secured Party pursuant to Paragraph 3 hereunder and
            (ii) provide notice on behalf of the Secured Party pursuant to
            Paragraph 7 hereunder.

      (v)   COLLATERAL ACCOUNT. Secured Party shall at all times maintain all
            Posted Collateral in a segregated trust account pursuant to the
            Pooling and Servicing Agreement.

      (vi)  EXTERNAL CALCULATIONS. At any time at which Pledgor (or, to the
            extent applicable, its Credit Support Provider) does not have a
            long-term unsubordinated and unsecured debt rating of at least
            "BBB+" from S&P, the Valuation Agent shall (at its own expense)
            obtain external calculations of the Secured Party's Exposure from at
            least two Reference Market-makers on the last Local Business Day of
            each calendar month. Any determination of the S&P Collateral Amount
            shall be based on the greatest of the Secured Party's Exposure
            determined by the Valuation Agent and such Reference Market-makers.
            Such external calculation may not be obtained from the same
            Reference Market-maker more than four times in any 12-month period.

      (vii) NOTICE TO S&P. At any time at which Pledgor (or, to the extent
            applicable, its Credit Support Provider) does not have a long-term
            unsubordinated and unsecured debt rating of at least "BBB+" from
            S&P, the Valuation Agent shall provide to S&P not later than the
            Notification Time on the Local Business Day following each Valuation
            Date its calculations of the Secured Party's Exposure and the Value
            of any Eligible Credit Support or Posted Credit Support for that
            Valuation Date. The Valuation Agent shall also provide to S&P any
            external marks of the Secured Party's Exposure.

      (viii) EXPENSES. Pledgor shall be responsible for all reasonable costs and
            expenses incurred by Secured Party in connection with the Transfer
            of any Eligible Collateral under this Annex.

      (ix)  ADDITIONAL DEFINED TERMS.

            "DV01" means, with respect to a Transaction and any date of
            determination, the sum of the estimated change in the Secured
            Party's Exposure with respect to such Transaction that would result
            from a one basis point change in the relevant swap curve on such
            date, as determined by the Valuation Agent in good faith and in a
            commercially reasonable manner. The Valuation Agent shall, upon
            request of Secured Party, provide to Secured Party a statement
            showing in reasonable detail such calculation.

            "MOODY'S FIRST LEVEL ADDITIONAL COLLATERALIZED AMOUNT" means, with
            respect to any Transaction, the lesser of (x) the product of 15 and
            DV01 for such Transaction and such Valuation Date and (y) the
            product of (i) 2%, (ii) if a Scale Factor is specified in such
            Transaction, the Scale Factor (as defined in such Transaction) for
            such Transaction, or, if no Scale Factor is specified in such
            Transaction, 1 and (iii) the Notional Amount for such Transaction
            for the Calculation Period which includes such Valuation Date.

                 "MOODY'S FIRST LEVEL COLLATERAL AMOUNT" means, (A) for any
            Valuation Date on which (I) a

<PAGE>

            Moody's First Level Downgrade has occurred and has been continuing
            (x) for at least 30 Local Business Days or (y) since this Annex was
            executed and (II) it is not the case that a Moody's Second Level
            Downgrade has occurred and been continuing for at least 30 Local
            Business Days, an amount equal to the greater of (a) zero and (b)
            the sum of the Secured Party's aggregate Exposure for all
            Transactions and the aggregate of Moody's First Level Additional
            Collateralized Amounts for each Transaction and (B)for any other
            Valuation Date, zero.

            "MOODY'S FIRST LEVEL VALUE" means, for any date that the Moody's
            First Level Collateral Amount is determined and the Value of any
            Eligible Collateral or Posted Collateral that is a security, the bid
            price for such security obtained by the Valuation Agent multiplied
            by the Moody's First Level Valuation Percentage for such security
            set forth on Schedule A hereto.

            "MOODY'S SECOND LEVEL ADDITIONAL COLLATERALIZED AMOUNT" means, with
            respect to any Transaction,

                 (1) if such Transaction is not a Transaction-Specific Hedge,
                 the lesser of (i) the product of the 50 and DV01 for such
                 Transaction and such Valuation Date and (ii) the product of (x)
                 8%, (y) if a Scale Factor is specified in such Transaction, the
                 Scale Factor (as defined in such Transaction) for such
                 Transaction, or, if no Scale Factor is specified in such
                 Transaction, 1 and (z) the Notional Amount for such Transaction
                 for the Calculation Period (as defined in the related
                 Transaction) which includes such Valuation Date; or

                 (2) if such Transaction is a Transaction-Specific Hedge, the
                 lesser of (i) the product of the 65 and DV01 for such
                 Transaction and such Valuation Date and (ii) the product of (x)
                 10%, (y) if a Scale Factor is specified in such Transaction,
                 the Scale Factor (as defined in such Transaction) for such
                 Transaction, or, if no Scale Factor is specified in such
                 Transaction, 1 and (z) the Notional Amount for such Transaction
                 for the Calculation Period (as defined in the related
                 Transaction) which includes such Valuation Date.

            "MOODY'S SECOND LEVEL COLLATERAL AMOUNT" means, (A) for any
            Valuation Date on which it is the case that a Moody's Second Level
            Downgrade has occurred and been continuing for at least 30 Local
            Business Days, an amount equal to the greatest of (a) zero, (b) the
            aggregate amount of the Next Payments for all Next Payment Dates and
            (c) the sum of the Secured Party's aggregate Exposure and the
            aggregate of Moody's Second Level Additional Collateralized Amounts
            for each Transaction and (B) for any other Valuation Date, zero.

            "MOODY'S SECOND LEVEL VALUE" means, for any date that the Moody's
            Second Level Collateral Amount is determined and the Value of any
            Eligible Collateral or Posted Collateral that is a security, the bid
            price for such security obtained by the Valuation Agent multiplied
            by the Moody's Second Level Valuation Percentage for such security
            set forth on Schedule A hereto.

            "NEXT PAYMENT" means, in respect of each Next Payment Date, the
            greater of (i) the amount of any payments due to be made by the
            Pledgor pursuant to Section 2(a) on such Next Payment Date less any
            payments due to be made by the Secured Party under Section 2(a) on
            such Next Payment Date (in each case, after giving effect to any
            applicable netting under Section 2(c)) and (ii) zero.

            "NEXT PAYMENT DATE" means the next scheduled payment date under any
            Transaction.

            "REMAINING WEIGHTED AVERAGE MATURITY" means, with respect to a
            Transaction, the expected weighted average maturity for such
            Transaction as determined by the Valuation Agent.

                 "S&P COLLATERAL AMOUNT" means, (A) for any Valuation Date on
            which a S&P First Level

<PAGE>

            Downgrade has occurred and been continuing for at least 30 days or
            on which a S&P Second Level Downgrade has occurred and is
            continuing, an amount equal to the sum of (1) 100.0% of the Secured
            Party's Exposure for such Valuation Date and (2) the product of (x)
            the Volatility Buffer for each Transaction, (y) if a Scale Factor is
            specified in such Transaction, the Scale Factor (as defined in such
            Transaction) for such Transaction, or, if no Scale Factor is
            specified in such Transaction, 1 and (z) the Notional Amount of such
            Transaction for the Calculation Period (as defined in the related
            Transaction) of such Transaction which includes such Valuation Date,
            or (B) for any other Valuation Date, zero.

            "S&P VALUE" means, for any date that the S&P Collateral Amount is
            determined and the Value of any Eligible Collateral or Posted
            Collateral that is a security, the bid price for such security
            obtained by the Valuation Agent multiplied by the S&P Valuation
            Percentage for such security set forth on Schedule A hereto.

            "TRANSACTION-SPECIFIC HEDGE" means any Transaction that is a cap,
            floor or swaption or a Transaction in respect of which (x) the
            notional amount of the interest rate swap is "balance guaranteed" or
            (y) the notional amount of the interest rate swap for any
            Calculation Period otherwise is not a specific dollar amount that is
            fixed at the inception of the Transaction.

            "VOLATILITY BUFFER" means, for any Transaction, the related
            percentage set forth in the following table:

<Table>
<Caption>
 The higher of the           Remaining      Remaining      Remaining         Remaining
  S&P short-term credit      Weighted       Weighted         Weighted          Weighted
  rating of (i) Pledgor      Average        Average          Average           Average
  and (ii) the Credit        Maturity       Maturity         Maturity          Maturity
  Support Provider of        up to 3        up to 5          up to 10          up to 30
  Pledgor, if applicable       years          years          years             years
  ----------------------       -----          -----          -----             -----
<S>                          <C>            <C>            <C>              <C>
 "A-2"   or higher             2.75%          3.25%           4.00%             4.75%
 "A-3"                         3.25%          4.00%           5.00%             6.25%
 "BB+" or lower                3.50%          4.50%           6.75%             7.50%
</TABLE>

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Annex on the respective
dates specified below with effect from the date specified on the first page of
this document.

BEAR STEARNS FINANCIAL PRODUCTS INC.       LASALLE BANK NATIONAL ASSOCIATION,
                                           NOT IN ITS INDIVIDUAL CAPACITY, BUT
                                           SOLELY AS SUPPLEMENTAL INTEREST TRUST
                                           TRUSTEE ON BEHALF OF THE SUPPLEMENTAL
                                           INTEREST TRUST RELATING TO THE
                                           MERRILL LYNCH FIRST FRANKLIN MORTGAGE
                                           LOAN TRUST, MORTGAGE LOAN
                                           ASSET-BACKED CERTIFICATES, SERIES
                                           2007-2

By:___________________________             By:_____________________________
  Name:                                    Name:
  Title:                                   Title:
  Date                                     Date

<PAGE>

                                                                      SCHEDULE A

                               COLLATERAL SCHEDULE

The Moody's First Level Valuation Percentages shall be used in determining the
Moody's First Level Collateral Amount. The Moody's Second Level Valuation
Percentages shall be used in determining the Moody's Second Level Collateral
Amount. The S&P Valuation Percentages shall be used in determining the S&P
Collateral Amount.

<TABLE>
<CAPTION>
ISDA Collateral                                     Moody's First           Moody's Second
Asset Definition                                    Level Valuation         Level Valuation           S&P Valuation
(ICAD) Code                Remaining Maturity       Percentage              Percentage                Percentage
-----------                ------------------       ----------              ----------                ----------
<S>                        <C>                      <C>                     <C>                       <C>
US-CASH                    N/A                      100%                    100%                      100%..
EU-CASH                    N/A                      98%                     94%                       92.5%
GB-CASH                    N/A                      98%                     95%                       94.1%

                           < 1 Year                 100%                    100%                      98.9%
                           1 to 2 years
                                                    100%                    99%                       98.0%
                           2 to 3 years             100%                    98%                       97.4%
                           3 to 5 years             100%                    97%                       95.5%
US-TBILL                   5 to 7 years             100%                    96%                       93.7%
US-TNOTE
                           7 to 10 years            100%                    94%                       92.5%
US-TBOND
(fixed rate)               10 to 20 years           100%                    90%                       91.1%
                           > 20 years               100%                    88%                       88.6%

US-TBILL
US-TNOTE
                           All Maturities           100%                    99%                       Not Eligible Collateral
US-TBOND
(floating rate)

                           < 1 Year                 100%                    99%                       98.5%
                           1 to 2 years             100%                    99%                       97.7%
                           2 to 3 years             100%                    98%                       97.3%
                           3 to 5 years             100%                    96%                       94.5%
                           5 to 7 years             100%                    93%                       93.1%
GA-US-AGENCY               7 to 10 years            100%                    93%                       90.7%
(fixed rate)
                           10 to 20 years           100%                    89%                       87.7%
                           > 20 years               100%                    87%                       84.4%

GA-US-AGENCY               All Maturities           100%                    98%
                                                                                                      Not Eligible Collateral
(floating rate)
</TABLE>

<PAGE>

<TABLE>
<S>                        <C>                    <C>                       <C>                      <C>
                                                  Rated Aa3 or better       Rated Aa3 or better      Rated AAA or better
                                                  by Moody's                by Moody's               by S&P
                              < 1 Year            98%                       94%                      98.8%
                              1 to 2 years        98%                       93%                      97.9%
                              2 to 3 years        98%                       92%                      97.1%
                              3 to 5 years        98%                       90%                      91.2%
GA-EUROZONE-GOV               5 to 7 years        98%                       89%                      87.5%
(other than EU-CASH)
                              7 to 10 years       98%                       88%                      83.8%
(fixed rate)
                              10 to 20 years      98%                       84%                      75.5%
                              > 20 years          98%                       82%                      Not Eligible Collateral

GA-EUROZONE-GOV                                   Rated Aa3 or better       Rated Aa3 or better      Rated AAA or better
(other than EU-CASH)                              by Moody's                by Moody's               by S&P
(floating rate)               All Maturities      98%                       93%                      Not Eligible Collateral
</TABLE>

<PAGE>

<TABLE>
<S>                        <C>                      <C>                     <C>                <C>
                              < 1 Year               98%                    94%                Not Eligible Collateral
                              1 to 2 years           98%                    93%                Not Eligible Collateral
                              2 to 3 years           98%                    92%                Not Eligible Collateral
GA-GB-GOV                     3 to 5 years           98%                    91%                Not Eligible Collateral
(other than GB-CASH)
(fixed rate)                  5 to 7 years           98%                    90%                Not Eligible Collateral
                              7 to 10 years          98%                    89%                Not Eligible Collateral
                              10 to 20 years         98%                    86%                Not Eligible Collateral
                              > 20 years             98%                    84%                Not Eligible Collateral

GA-GB-GOV
(other than GB-CASH)          All Maturities         98%                    94%                Not Eligible Collateral
(floating rate)
</TABLE>

The ISDA Collateral Asset Definition (ICAD) Codes used in this Collateral
Schedule shall have the meanings set forth in the Collateral Asset Definitions
(First Edition - June 2003) as published and copyrighted in 2003 by the
International Swaps and Derivatives Association. Inc.

<PAGE>

                                    EXHIBIT R

                        FORM OF ASSESSMENT OF COMPLIANCE

1.   [Name of Servicing Entity] ("XYZ") is responsible for assessing compliance
     with the servicing criteria applicable to it under paragraph (d) of Item
     1122 of Regulation AB, as of and for the 12-month period ending [December
     31, _____] (the "Reporting Period"), as set forth in Appendix ____ hereto.
     The transactions covered by this report are attached hereto as Appendix B
     and include asset-backed securities transactions for which the undersigned
     servicing entity has acted as a servicer involving residential mortgage
     loans (the "Platform").The transactions covered by this report include
     asset-backed securities transactions [for which XYZ acted as [master
     servicer, servicer, trustee, securities administrator, custodian] (the
     "Platform");

2.   XYZ has engaged certain vendors (the "Vendors") to perform specific,
     limited or scripted activities, and XYZ elects to take responsibility for
     assessing compliance with the servicing criteria or portion of the
     servicing criteria applicable to such Vendors' activities as set forth in
     Appendix ___ hereto;

3.   Except as set forth in paragraph 4 below, XYZ used the criteria set forth
     in paragraph (d) of Item 1122 of Regulation AB to assess the compliance
     with the applicable servicing criteria;

4.   The criteria referred to as "inapplicable servicing criteria" on Appendix
     ___ hereto are inapplicable to XYZ based on the activities it performs,
     directly or through its Vendors, with respect to the Platform;

5.   XYZ has complied, in all material respects, with the applicable servicing
     criteria as of [December 31, _____] and for the Reporting Period with
     respect to the Platform taken as a whole[, except as described on
     Appendix B hereto];

6.   XYZ has not identified and is not aware of any material instance of
     noncompliance by the Vendors with the applicable servicing criteria as of
     [December 31, _____] and for the Reporting Period with respect to the
     Platform taken as a whole [_____, except as described on Appendix ____
     hereto];

7.   XYZ has not identified any material deficiency in its policies and
     procedures to monitor the compliance by the Vendors with the applicable
     servicing criteria as of [December 31, ______] and for the Reporting Period
     with respect to the Platform taken as a whole [_____, except as described
     on Appendix B hereto]; and

8.   [_____________], a registered public accounting firm, has issued an
     attestation report on XYZ's assessment of compliance with the applicable
     servicing criteria for the Reporting Period.

[Date of Certification]                 [Name of Servicing Entity]

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

                                       R-1
<PAGE>

                                    EXHIBIT S

                       SERVICING CRITERIA TO BE ADDRESSED
                           IN ASSESSMENT OF COMPLIANCE
                          (RMBS UNLESS OTHERWISE NOTED)

DEFINITIONS                             KEY:

PRIMARY SERVICER - transaction party having borrower contact X - obligation

TRUSTEE - fiduciary of the transaction and safe keeper of certain pool assets

CUSTODIAN - safe keeper of certain pool assets

WHERE THERE ARE MULTIPLE CHECKS FOR CRITERIA THE ATTESTING PARTY WILL IDENTIFY
IN THEIR MANAGEMENT ASSERTION THAT THEY ARE ATTESTING ONLY TO THE PORTION OF THE
DISTRIBUTION CHAIN THEY ARE RESPONSIBLE FOR IN THE RELATED TRANSACTION
AGREEMENTS.

<TABLE>
<CAPTION>
                                                           HOME LOAN
                                                           SERVICES,       LASALLE
REGULATION AB                                                 INC.          BANK            ADDITIONAL
REFERENCE                   SERVICING CRITERIA             (SERVICER)     (TRUSTEE)         INFORMATION
-------------       ----------------------------------   -------------   -----------   --------------------
<S>                 <C>                                  <C>             <C>           <C>
                    GENERAL SERVICING CONSIDERATIONS

1122(d)(1)(i)       Policies and procedures are                X              X        Servicer and
                    instituted to monitor any                                          Trustee each
                    performance or other triggers and                                  responsible only to
                    events of default in accordance                                    the extent that
                    with the transaction agreements.                                   each party, as
                                                                                       applicable, has
                                                                                       actual knowledge or
                                                                                       written notice with
                                                                                       respect to parties
                                                                                       other than itself.

1122(d)(1)(ii)      If any material servicing            IF APPLICABLE       IF
                    activities are outsourced to third       FOR A        APPLICABLE
                    parties, policies and procedures      TRANSACTION       FOR A
                    are instituted to monitor the         PARTICIPANT    TRANSACTION
                    third party's performance and                        PARTICIPANT
                    compliance with such servicing
                    activities.

1122(d)(1)(iii)     Any requirements in the                   N/A            N/A
                    transaction agreements to maintain
                    a back-up servicer for the Pool
                    Assets are maintained.

1122(d)(1)(iv)      A fidelity bond and errors and             X
                    omissions policy is in effect on
                    the party participating in the
                    servicing function throughout the
                    reporting period in the amount of
                    coverage required by and otherwise
                    in accordance with the terms of
                    the transaction agreements.

                    CASH COLLECTION AND ADMINISTRATION

1122(d)(2)(i)       Payments on pool assets are                X              X        Servicer and
                    deposited into the appropriate                                     Trustee each
                    custodial bank accounts and                                        responsible only
                    related bank clearing accounts no                                  for deposits into
                    more than two business                                             the accounts held
                                                                                       by it.
</TABLE>

                                       S-1

<PAGE>

<TABLE>
<CAPTION>
                                                           HOME LOAN
                                                           SERVICES,       LASALLE
REGULATION AB                                                 INC.          BANK            ADDITIONAL
REFERENCE                   SERVICING CRITERIA             (SERVICER)     (TRUSTEE)         INFORMATION
-------------       ----------------------------------   -------------   -----------   --------------------
<S>                 <C>                                  <C>             <C>           <C>
                    days following receipt, or such
                    other number of days specified in
                    the transaction agreements.

1122(d)(2)(ii)      Disbursements made via wire                X              X        Servicer disburses
                    transfer on behalf of an obligor                                   funds to trustee.
                    or to an investor are made only by                                 Trustee disburses
                    authorized personnel.                                              funds to
                                                                                       certificateholders.

1122(d)(2)(iii)     Advances of funds or guarantees            X
                    regarding collections, cash flows
                    or distributions, and any interest
                    or other fees charged for such
                    advances, are made, reviewed and
                    approved as specified in the
                    transaction agreements.

1122(d)(2)(iv)      The related accounts for the               X              X
                    transaction, such as cash reserve
                    accounts or accounts established
                    as a form of over
                    collateralization, are separately
                    maintained (e.g., with respect to
                    commingling of cash) as set forth
                    in the transaction agreements.

1122(d)(2)(v)       Each custodial account is                  X              X
                    maintained at a federally insured
                    depository institution as set
                    forth in the transaction
                    agreements. For purposes of this
                    criterion, "federally insured
                    depository institution" with
                    respect to a foreign financial
                    institution means a foreign
                    financial institution that meets
                    the requirements of Rule
                    13k-1(b)(1) of the Securities
                    Exchange Act.

1122(d)(2)(vi)      Unissued checks are safeguarded so         X              X
                    as to prevent unauthorized access.

1122(d)(2)(vii)     Reconciliations are prepared on a          X              X
                    monthly basis for all asset-backed
                    securities related bank accounts,
                    including custodial accounts and
                    related bank clearing accounts.
                    These reconciliations are (A)
                    mathematically accurate; (B)
                    prepared within 30 calendar days
                    after the bank statement cutoff
                    date, or such other number of days
                    specified in the transaction
                    agreements; (C) reviewed and
                    approved by someone other than the
                    person who prepared the
                    reconciliation; and (D) contain
                    explanations for reconciling
                    items. These reconciling items are
                    resolved within 90 calendar days
                    of their original identification,
                    or such other number of days
                    specified in the transaction
                    agreements.

                    INVESTOR REMITTANCES AND REPORTING
</TABLE>

                                      S-2

<PAGE>

<TABLE>
<CAPTION>
                                                           HOME LOAN
                                                           SERVICES,       LASALLE
REGULATION AB                                                 INC.          BANK            ADDITIONAL
REFERENCE                   SERVICING CRITERIA             (SERVICER)     (TRUSTEE)         INFORMATION
-------------       ----------------------------------   -------------   -----------   --------------------
<S>                 <C>                                  <C>             <C>           <C>
1122(d)(3)(i)       Reports to investors, including        (A), (B) &         X
                    those to be filed with the              (D) ONLY
                    Commission, are maintained in
                    accordance with the transaction
                    agreements and applicable
                    Commission requirements.
                    Specifically, such reports (A) are
                    prepared in accordance with
                    timeframes and other terms set
                    forth in the transaction
                    agreements; (B) provide
                    information calculated in
                    accordance with the terms
                    specified in the transaction
                    agreements; (C) are filed with the
                    Commission as required by its
                    rules and regulations; and (D)
                    agree with investors' or the
                    trustee's records as to the total
                    unpaid principal balance and
                    number of Pool Assets serviced by
                    the Servicer.

1122(d)(3)(ii)      Amounts due to investors are               X              X        Servicer remits
                    allocated and remitted in                                          cash and loan level
                    accordance with timeframes,                                        data to Trustee
                    distribution priority and other                                    based on timelines
                    terms set forth in the transaction                                 established in the
                    agreements.                                                        Pooling and
                                                                                       Servicing
                                                                                       Agreement. The
                                                                                       Trustee is
                                                                                       responsible for the
                                                                                       allocation of funds
                                                                                       to
                                                                                       Certificateholders
                                                                                       using the
                                                                                       appropriate
                                                                                       distribution
                                                                                       priority as
                                                                                       established by the
                                                                                       Pooling and
                                                                                       Servicing Agreement.

1122(d)(3)(iii)     Disbursements made to an investor          X              X        Trustee disburses
                    are posted within two business                                     funds to
                    days to the Servicer's investor                                    Certificateholders.
                    records, or such other number of
                    days specified in the transaction
                    agreements.

1122(d)(3)(iv)      Amounts remitted to investors per          X              X        Servicer remits
                    the investor reports agree with                                    funds and provides
                    cancelled checks, or other form of                                 certain investor
                    payment, or custodial bank                                         reports to Trustee
                    statements.                                                        within guidelines
                                                                                       and timeframes
                                                                                       established in
                                                                                       Pooling and
                                                                                       Servicing
                                                                                       Agreement.
                                                                                       Trustee disburses
                                                                                       funds to
                                                                                       certificateholders.

                    POOL ASSET ADMINISTRATION

1122(d)(4)(i)       Collateral or security on pool             X              X
                    assets is maintained as required
                    by the transaction agreements or
                    related pool
</TABLE>

                                      S-3

<PAGE>

<TABLE>
<CAPTION>
                                                           HOME LOAN
                                                           SERVICES,       LASALLE
REGULATION AB                                                 INC.          BANK            ADDITIONAL
REFERENCE                   SERVICING CRITERIA             (SERVICER)     (TRUSTEE)         INFORMATION
-------------       ----------------------------------   -------------   -----------   --------------------
<S>                 <C>                                  <C>             <C>           <C>
                    asset documents.

1122(d)(4)(ii)      Pool assets and related documents          X              X        Custodian
                    are safeguarded as required by the                                 responsibility with
                    transaction agreements.                                            respect to the
                                                                                       Mortgage Files

1122(d)(4)(iii)     Any additions, removals or                 X              X        Trustee shall only
                    substitutions to the asset pool                                    review, not
                    are made, reviewed and approved in                                 approve, such
                    accordance with any conditions or                                  additions, removals
                    requirements in the transaction                                    or substitutions in
                    agreements.                                                        accordance with the
                                                                                       transaction
                                                                                       agreements.

1122(d)(4)(iv)      Payments on pool assets, including         X
                    any payoffs, made in accordance
                    with the related pool asset
                    documents are posted to the
                    Servicer's obligor records
                    maintained no more than two
                    business days after receipt, or
                    such other number of days
                    specified in the transaction
                    agreements, and allocated to
                    principal, interest or other items
                    (e.g., escrow) in accordance with
                    the related pool asset documents.

1122(d)(4)(v)       The Servicer's records regarding           X
                    the pool assets agree with the
                    Servicer's records with respect to
                    an obligor's unpaid principal
                    balance.

1122(d)(4)(vi)      Changes with respect to the terms          X
                    or status of an obligor's pool
                    assets (e.g., loan modifications
                    or re-agings) are made, reviewed
                    and approved by authorized
                    personnel in accordance with the
                    transaction agreements and related
                    pool asset documents.

1122(d)(4)(vii)     Loss mitigation or recovery                X
                    actions (e.g., forbearance plans,
                    modifications and deeds in lieu of
                    foreclosure, foreclosures and
                    repossessions, as applicable) are
                    initiated, conducted and concluded
                    in accordance with the timeframes
                    or other requirements established
                    by the transaction agreements.

1122(d)(4)(viii)    Records documenting collection             X
                    efforts are maintained during the
                    period a pool asset is delinquent
                    in accordance with the transaction
                    agreements. Such records are
                    maintained on at least a monthly
                    basis, or such other period
                    specified in the transaction
                    agreements, and describe
</TABLE>

                                      S-4

<PAGE>

<TABLE>
<CAPTION>
                                                           HOME LOAN
                                                           SERVICES,       LASALLE
REGULATION AB                                                 INC.          BANK            ADDITIONAL
REFERENCE                   SERVICING CRITERIA             (SERVICER)     (TRUSTEE)         INFORMATION
-------------       ----------------------------------   -------------   -----------   --------------------
<S>                 <C>                                  <C>             <C>           <C>
                    the entity's activities in
                    monitoring delinquent pool assets
                    including, for example, phone
                    calls, letters and payment
                    rescheduling plans in cases where
                    delinquency is deemed temporary
                    (e.g., illness or unemployment).

1122(d)(4)(ix)      Adjustments to interest rates or           X
                    rates of return for pool assets
                    with variable rates are computed
                    based on the related pool asset
                    documents.

1122(d)(4)(x)       Regarding any funds held in trust          X
                    for an obligor (such as escrow
                    accounts): (A) such funds are
                    analyzed, in accordance with the
                    obligor's pool asset documents, on
                    at least an annual basis, or such
                    other period specified in the
                    transaction agreements; (B)
                    interest on such funds is paid, or
                    credited, to obligors in
                    accordance with applicable pool
                    asset documents and state laws;
                    and (C) such funds are returned to
                    the obligor within 30 calendar
                    days of full repayment of the
                    related pool assets, or such other
                    number of days specified in the
                    transaction agreements.

1122(d)(4)(xi)      Payments made on behalf of an              X                       Servicing function
                    obligor (such as tax or insurance                                  participant
                    payments) are made on or before                                    reponsibility
                    the related penalty or expiration
                    dates, as indicated on the
                    appropriate bills or notices for
                    such payments, provided that such
                    support has been received by the
                    servicer at least 30 calendar days
                    prior to these dates, or such
                    other number of days specified in
                    the transaction agreements.

1122(d)(4)(xii)     Any late payment penalties in              X                       Servicing function
                    connection with any payment to be                                  participant
                    made on behalf of an obligor are                                   responsibility
                    paid from the Servicer's funds and
                    not charged to the obligor, unless
                    the late payment was due to the
                    obligor's error or omission.

1122(d)(4)(xiii)    Disbursements made on behalf of an         X
                    obligor are posted within two
                    business days to the obligor's
                    records maintained by the
                    servicer, or such other number of
                    days specified in the transaction
                    agreements.

1122(d)(4)(xiv)     Delinquencies, charge-offs and             X
                    uncollectible accounts are
                    recognized and recorded in
                    accordance with the transaction
                    agreements.

1122(d)(4)(xv)      Any external enhancement or other                         X
</TABLE>

                                       S-5

<PAGE>

<TABLE>
<CAPTION>
                                                           HOME LOAN
                                                           SERVICES,       LASALLE
REGULATION AB                                                 INC.          BANK            ADDITIONAL
REFERENCE                   SERVICING CRITERIA             (SERVICER)     (TRUSTEE)         INFORMATION
-------------       ----------------------------------   -------------   -----------   --------------------
<S>                 <C>                                  <C>             <C>           <C>
                    support, identified in Item
                    1114(a)(1) through (3) or Item
                    1115 of Regulation AB, is
                    maintained as set forth in the
                    transaction agreements.
</TABLE>

                                      S-6

<PAGE>

                                    EXHIBIT T

                          SARBANES-OXLEY CERTIFICATIONS

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Home Loan Services, Inc.
150 Allegheny Center Mall
Pittsburgh, Pennsylvania 15212

     Re:  Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage Loan
          Asset-Backed Certificates, Series 2007-2

     I, [identify the certifying individual], certify that:

     1. I have reviewed the report on Form 10-K and all reports on Form 10-D
required to be filed in respect of the period covered by this report on Form
10-K of [identify the issuing entity] (the "Exchange Act periodic reports");

     2. Based on my knowledge, the Exchange Act periodic reports, taken as a
whole, do not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect
to the period covered by this report;

     3. Based on my knowledge, all of the distribution, servicing and other
information required to be provided under Form 10-D for the period covered by
this report is included in the Exchange Act periodic reports;

     4. [I am responsible for reviewing the activities performed by the
servicer(s) and based on my knowledge and the compliance review(s) conducted in
preparing the servicer compliance statement(s) required in this report under
Item 1123 of Regulation AB, and except as disclosed in the Exchange Act periodic
reports, the servicer(s) [has/have] fulfilled [its/their] obligations under the
servicing agreement(s); and]

     5. All of the reports on assessment of compliance with servicing criteria
for ABS and their related attestation reports on assessment of compliance with
servicing criteria for asset-backed securities required to be included in this
report in accordance with Item 1122 of Regulation AB and Exchange Act Rules
13a-18 and 15d-18 have been included as an exhibit to this report, except as
otherwise disclosed in this report. Any material instances of noncompliance
described in such reports have been disclosed in this report on Form 10-K.

     [In giving the certifications above, I have reasonably relied on
information provided to me by the following unaffiliated parties [name of
servicer, sub-servicer, co-servicer, depositor or trustee].]

                                      T-1

<PAGE>

Date:
      --------------------------

--------------------------------
[Signature]

--------------------------------
[Title]

                                      T-2

<PAGE>

                                    EXHIBIT U

                   FORM OF ITEM 1123 CERTIFICATION OF SERVICER

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603

Attention:   Global Securities and Trust Services - Merrill Lynch First Franklin
             Mortgage Loan Trust, Series 2007-2

Re:  Pooling and Servicing Agreement (the "Agreement"), dated as of April 1,
     2007, among Merrill Lynch Mortgage Investors, Inc., as depositor, Home Loan
     Services, Inc., as servicer, and LaSalle Bank National Association, as
     trustee, relating to Merrill Lynch First Franklin Mortgage Loan Trust,
     Mortgage Loan Asset-Backed Certificates, Series 2007-2

I, [identify name of certifying individual], [title of certifying individual] of
Home Loan Services, Inc. (the "Servicer"), hereby certify that:

     (1) A review of the activities of the Servicer during the preceding
calendar year and of the performance of the Servicer under the Agreement has
been made under my supervision; and

     (2) To the best of my knowledge, based on such review, the Servicer has
fulfilled all its obligations under the Agreement in all material respects
throughout such year or a portion thereof[, or, if there has been a failure to
fulfill any such obligation in any material respect, I have specified below each
such failure known to me and the nature and status thereof].

Date:
      -------------------------------

Home Loan Services, Inc.,
as Servicer

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

                                       U-1
<PAGE>

                                    EXHIBIT V

                           FORM OF DELINQUENCY REPORT

STANDARD FILE LAYOUT - DELINQUENCY REPORTING

<TABLE>
<CAPTION>
COLUMN/HEADER NAME                                    DESCRIPTION                            DECIMAL   FORMAT COMMENT
------------------                                    -----------                            -------   --------------
<S>                           <C>                                                            <C>       <C>
SERVICER_LOAN_NBR             A unique number assigned to a loan by the Servicer. This
                              may be different than the LOAN_NBR

LOAN_NBR                      A unique identifier assigned to each loan by the originator.

CLIENT_NBR                    Servicer Client Number

SERV_INVESTOR_NBR             Contains a unique number as assigned by an external
                              servicer to identify a group of loans in their system.

BORROWER_FIRST_NAME           First Name of the Borrower.

BORROWER_LAST_NAME            Last name of the borrower.

PROP_ADDRESS                  Street Name and Number of Property

PROP_STATE                    The state where the property located.

PROP_ZIP                      Zip code where the property is located.

BORR_NEXT_PAY_DUE_DATE        The date that the borrower's next payment is due to the                  MM/DD/YYYY
                              servicer at the end of processing cycle, as reported by
                              Servicer.

LOAN_TYPE                     Loan Type (i.e. FHA, VA, Conv)

BANKRUPTCY_FILED_DATE         The date a particular bankruptcy claim was filed.                        MM/DD/YYYY

BANKRUPTCY_CHAPTER_CODE       The chapter under which the bankruptcy was filed.

BANKRUPTCY_CASE_NBR           The case number assigned by the court to the bankruptcy
                              filing.

POST_PETITION_DUE_DATE        The payment due date once the bankruptcy has been approved               MM/DD/YYYY
                              by the courts

BANKRUPTCY_DCHRG_DISM_DATE    The Date The Loan Is Removed From Bankruptcy. Either by                  MM/DD/YYYY
                              Dismissal, Discharged and/or a Motion For Relief Was
                              Granted.

LOSS_MIT_APPR_DATE            The Date The Loss Mitigation Was Approved By The Servicer                MM/DD/YYYY

LOSS_MIT_TYPE                 The Type Of Loss Mitigation Approved For A Loan Such As;

LOSS_MIT_EST_COMP_DATE        The Date The Loss Mitigation /Plan Is Scheduled To End/Close             MM/DD/YYYY

LOSS_MIT_ACT_COMP_DATE        The Date The Loss Mitigation Is Actually Completed                       MM/DD/YYYY

FRCLSR_APPROVED_DATE          The date DA Admin sends a letter to the servicer with                    MM/DD/YYYY
                              instructions to begin foreclosure proceedings.

ATTORNEY_REFERRAL_DATE        Date File Was Referred To Attorney to Pursue Foreclosure                 MM/DD/YYYY

FIRST_LEGAL_DATE              Notice of 1st legal filed by an Attorney in a Foreclosure                MM/DD/YYYY
                              Action
</TABLE>

                                       V-1

<PAGE>

<TABLE>
<S>                           <C>                                                            <C>       <C>
FRCLSR_SALE_EXPECTED_DATE     The date by which a foreclosure sale is expected to occur.               MM/DD/YYYY

FRCLSR_SALE_DATE              The actual date of the foreclosure sale.                                 MM/DD/YYYY

EVICTION_START_DATE           The date the servicer initiates eviction of the borrower.                MM/DD/YYYY

EVICTION_COMPLETED_DATE       The date the court revokes legal possession of the property              MM/DD/YYYY
                              from the borrower.

LIST_PRICE                    The price at which an REO property is marketed.                   2      No commas(,) or
                                                                                                       dollar signs ($)

LIST_DATE                     The date an REO property is listed at a particular price.                MM/DD/YYYY

OFFER_AMT                     The dollar value of an offer for an REO property.                 2      No commas(,) or
                                                                                                       dollar signs ($)

OFFER_DATE_TIME               The date an offer is received by DA Admin or by the                      MM/DD/YYYY
                              Servicer.

REO_CLOSING_DATE              The date the REO sale of the property is scheduled to close.             MM/DD/YYYY

REO_ACTUAL_CLOSING_DATE       Actual Date Of REO Sale                                                  MM/DD/YYYY

OCCUPANT_CODE                 Classification of how the property is occupied.

PROP_CONDITION_CODE           A code that indicates the condition of the property.

PROP_INSPECTION_DATE          The date a property inspection is performed.                             MM/DD/YYYY

APPRAISAL_DATE                The date the appraisal was done.                                         MM/DD/YYYY

CURR_PROP_VAL                 The current "as is" value of the property based on brokers        2
                              price opinion or appraisal.

IF APPLICABLE:

DELINQ_STATUS_CODE            FNMA Code Describing Status of Loan

DELINQ_REASON_CODE            The circumstances which caused a borrower to stop paying on
                              a loan. Code indicates the reason why the loan is in
                              default for this cycle.

MI_CLAIM_FILED_DATE           Date Mortgage Insurance Claim Was Filed With Mortgage                    MM/DD/YYYY
                              Insurance Company.

MI_CLAIM_AMT                  Amount of Mortgage Insurance Claim Filed                                 No commas(,) or
                                                                                                       dollar signs ($)

MI_CLAIM_PAID_DATE            Date Mortgage Insurance Company Disbursed Claim Payment                  MM/DD/YYYY

MI_CLAIM_AMT_PAID             Amount Mortgage Insurance Company Paid On Claim                   2      No commas(,) or
                                                                                                       dollar signs ($)

POOL_CLAIM_FILED_DATE         Date Claim Was Filed With Pool Insurance Company                         MM/DD/YYYY

POOL_CLAIM_AMT                Amount of Claim Filed With Pool Insurance Company                 2      No commas(,) or
                                                                                                       dollar signs ($)
</TABLE>

                                      V-2

<PAGE>

<TABLE>
<S>                           <C>                                                            <C>       <C>
POOL_CLAIM_PAID_DATE          Date Claim Was Settled and The Check Was Issued By The Pool              MM/DD/YYYY
                              Insurer

POOL_CLAIM_AMT_PAID           Amount Paid On Claim By Pool Insurance Company                    2      No commas(,) or
                                                                                                       dollar signs ($)

FHA_PART_A_CLAIM_FILED_DATE   Date FHA Part A Claim Was Filed With HUD                                 MM/DD/YYYY

FHA_PART_A_CLAIM_AMT          Amount of FHA Part A Claim Filed                                  2      No commas(,) or
                                                                                                       dollar signs ($)

FHA_PART_A_CLAIM_PAID_DATE    Date HUD Disbursed Part A Claim Payment                                  MM/DD/YYYY

FHA_PART_A_CLAIM_PAID_AMT     Amount HUD Paid on Part A Claim                                   2      No commas(,) or
                                                                                                       dollar signs ($)

FHA_PART_B_CLAIM_FILED_DATE   Date FHA Part B Claim Was Filed With HUD                                 MM/DD/YYYY

FHA_PART_B_CLAIM_AMT          Amount of FHA Part B Claim Filed                                  2      No commas(,) or
                                                                                                       dollar signs ($)

FHA_PART_B_CLAIM_PAID_DATE    Date HUD Disbursed Part B Claim Payment                                  MM/DD/YYYY

FHA_PART_B_CLAIM_PAID_AMT     Amount HUD Paid on Part B Claim                                   2      No commas(,) or
                                                                                                       dollar signs ($)

VA_CLAIM_FILED_DATE           Date VA Claim Was Filed With the Veterans Admin                          MM/DD/YYYY

VA_CLAIM_PAID_DATE            Date Veterans Admin. Disbursed VA Claim Payment                          MM/DD/YYYY

VA_CLAIM_PAID_AMT             Amount Veterans Admin. Paid on VA Claim                           2      No commas(,) or
                                                                                                       dollar signs ($)
</TABLE>

                                       V-3

<PAGE>

STANDARD FILE CODES - DELINQUENCY REPORTING

The LOSS MIT TYPE field should show the approved Loss Mitigation Code as
follows:
ASUM - Approved Assumption
BAP - Borrower Assistance Program
CO - Charge Off
DIL - Deed-in-Lieu
FFA - Formal Forbearance Agreement
MOD - Loan Modification
PRE - Pre-Sale
SS - Short Sale
MISC - Anything else approved by the PMI or Pool Insurer

NOTE: LaSalle Bank National Association will accept alternative Loss Mitigation
Types to those above, provided that they are consistent with industry standards.
If Loss Mitigation Types other than those above are used, the Servicer must
supply LaSalle Bank National Association with a description of each of the Loss
Mitigation Types prior to sending the file.

The OCCUPANT CODE field should show the current status of the property code as
follows:

Mortgagor
Tenant
Unknown
Vacant

The PROPERTY CONDITION field should show the last reported condition of the
property as follows:

Damaged
Excellent
Fair
Gone
Good
Poor
Special Hazard
Unknown

                                       V-4

<PAGE>

                                    EXHIBIT W

                                   [RESERVED]

                                       W-1

<PAGE>

                                   SCHEDULE X

<TABLE>
<CAPTION>
                     Item on Form 8-K                        Party Responsible
                     ----------------                        -----------------
<S>                                                          <C>
*Item 1.01- Entry into a Material Definitive Agreement       All parties
*Item 1.02- Termination of a Material Definitive Agreement   All parties
Item 1.03- Bankruptcy or Receivership                        Depositor
Item 2.04- Triggering Events that Accelerate or Increase a   Depositor
Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement
*Item 3.03- Material Modification to Rights of Security      Trustee
Holders
Item 5.03- Amendments of Articles of Incorporation or        Depositor
Bylaws; Change of Fiscal Year
Item 6.01- ABS Informational and Computational Material      Depositor
*Item 6.02- Change of Servicer or Trustee                    Servicer/Trustee
*Item 6.03- Change in Credit Enhancement or External         Depositor/Trustee
Support
*Item 6.04- Failure to Make a Required Distribution          Trustee
Item 6.05- Securities Act Updating Disclosure                Depositor
Item 7.01- Reg FD Disclosure                                 Depositor
Item 8.01                                                    Depositor
Item 9.01                                                    Depositor
</TABLE>

                                       X-1

<PAGE>

                                   SCHEDULE Y

<TABLE>
<CAPTION>
                     Item on Form 10-D                                        Party Responsible
                     -----------------                                        -----------------
<S>                                                          <C>
Item 1: Distribution and Pool Performance Information        Trustee and Servicer (with respect to underlying
Plus any information required by 1121 which is NOT           Mortgage Loan data)
included on the monthly statement to
Certificateholders                                           Servicer and Trustee (to the extent required by
                                                             Regulation AB)
Item 2: Legal Proceedings  per Item 1117 of                  All parties to the Pooling and Servicing Agreement
Regulation AB                                                (as to themselves), the Depositor/Trustee/Servicer
                                                             (to the extent known) as to the Issuing entity, the
                                                             Sponsor, 1106(b) originator, any 1100(d)(1) party
Item 3: Sale of Securities and Use of Proceeds               Depositor
Item 4: Defaults Upon Senior Securities                      Trustee
Item 5: Submission of Matters to a Vote of Security          Trustee
Holders
Item 6: Significant Obligors of Pool Assets                  Depositor/Sponsor/Mortgage Loan Seller/Servicer
Item 7: Significant Enhancement Provider Information         Depositor/Sponsor
Item 8: Other Information                                    All parties to the Pooling and Servicing Agreement
                                                             (as to themselves) responsible for disclosure items
                                                             on Form 8-K
Item 9:  Exhibits                                            Trustee
</TABLE>

                                       Y-1

<PAGE>

                                   SCHEDULE Z

<TABLE>
<CAPTION>
                     Item on Form 10-K                                          Party Responsible
                     -----------------                                          -----------------
<S>                                                          <C>
Item 1B: Unresolved Staff Comments                           Depositor
*Item 9B: Other Information                                  Trustee and any other party responsible for disclosure
                                                             items on Form 8-K
*Item 15: Exhibits, Financial Statement Schedules            Trustee/Servicer/subservicers/Depositor
*Additional Item:                                            All parties to the Pooling and Servicing Agreement (as
                                                             to themselves), the Depositor/Trustee/Servicer (to the
Disclosure per Item 1117 of Regulation AB                    extent known) as to the Issuing Entity, the Sponsor,
                                                             1106(b) originator, any 1100(d)(1) party
*Additional Item:                                            All parties to the Pooling and Servicing Agreement,
Disclosure per Item 1119 of Regulation AB                    the Sponsor, originator, significant obligor,
                                                             enhancement or support provider
Additional Item:                                             Depositor/Sponsor/Mortgage Loan Seller/Servicer
Disclosure per Item 1112(b) of Regulation AB
Additional Item:                                             Depositor/Sponsor
Disclosure per Items 1114(b) and 1115(b) of Regulation AB
</TABLE>

                                       Z-1

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