Document:

EXHIBIT 10.1

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                      FORM OF HOME LOAN PURCHASE AGREEMENT

                RESIDENTIAL FUNDING MORTGAGE SECURITIES II, INC.

                                  as Purchaser,

                                       and

                        RESIDENTIAL FUNDING COMPANY, LLC

                                    as Seller

                                ________________

                          HOME LOAN PURCHASE AGREEMENT

                        Dated as of [__________], 20[__]

                                ________________

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<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                 Page
                                                                                                                 ----
<S>         <C>          <C>                                                                                     <C>
ARTICLE I             DEFINITIONS...............................................................................  1
         Section 1.1.          Definitions......................................................................  1
ARTICLE II            SALE OF HOME LOANS AND RELATED PROVISIONS.................................................  2
         Section 2.1.          Sale of Home Loans...............................................................  2
         Section 2.2.          Payment of Purchase Price........................................................  4
ARTICLE III           REPRESENTATIONS AND WARRANTIES; REMEDIES FOR
                      BREACH....................................................................................  5
         Section 3.1.          Seller Representations and Warranties............................................  5
ARTICLE IV            SELLER'S COVENANTS........................................................................ 12
         Section 4.1.          Covenants of the Seller.......................................................... 12
ARTICLE V             SERVICING................................................................................. 12
         Section 5.1.          Servicing........................................................................ 12
ARTICLE VI            LIMITATION ON LIABILITY OF THE SELLER..................................................... 12
         Section 6.1.          Limitation on Liability of the Seller............................................ 12
ARTICLE VII           TERMINATION............................................................................... 12
         Section 7.1.          Termination...................................................................... 12
ARTICLE VIII          MISCELLANEOUS PROVISIONS.................................................................. 13
         Section 8.1.          Amendment........................................................................ 13
         Section 8.2.          GOVERNING LAW.................................................................... 13
         Section 8.3.          Notices.......................................................................... 13
         Section 8.4.          Severability of Provisions....................................................... 13
         Section 8.5.          Relationship of Parties.......................................................... 14
         Section 8.6.          Counterparts..................................................................... 14
         Section 8.7.          Further Agreements............................................................... 14
         Section 8.8.          Intention of the Parties......................................................... 14
         Section 8.9.          Successors and Assigns; Assignment of This Agreement............................. 14
         Section 8.10.         Survival......................................................................... 15
Exhibit A             Home Loan Schedule
Exhibit B             Standard & Poor's Glossary For File Format For LEVELS(R) Version 5.7
                      Revised
</TABLE>

                                      -i-
<PAGE>

      This HOME LOAN PURCHASE AGREEMENT (this "Agreement" or "Home Loan Purchase
Agreement"),  dated as of  [__________],  20[__],  is made  between  Residential
Funding Company,  LLC (the "Seller") and Residential Funding Mortgage Securities
II, Inc. (the "Purchaser").

                              W I T N E S S E T H :

      WHEREAS, the Seller owns Home Loans and the Related Documents for the Home
Loans  indicated  on the  Home  Loan  Schedule  attached  as  Exhibit  A  hereto
(collectively,  the "Home Loans"), including rights to (a) any property acquired
by foreclosure or deed in lieu of foreclosure or otherwise, and (b) the proceeds
of any insurance policies covering the Home Loans;

      WHEREAS,  the parties hereto desire that the Seller sell the Home Loans to
the Purchaser  pursuant to the terms of this Agreement together with the Related
Documents on the Closing Date;

      WHEREAS,  pursuant to the terms of the Trust Agreement, the Purchaser will
sell the Home Loans to the Issuer in exchange for the Securities;

      WHEREAS,  pursuant  to the terms of the Trust  Agreement,  the Issuer will
issue and transfer to or at the direction of the Depositor, the Certificates;

      WHEREAS, pursuant to the terms of the Indenture, the Issuer will issue and
transfer to or at the direction of the Depositor, the Notes; and

      WHEREAS,  pursuant  to the terms of the  Servicing  Agreement,  the Master
Servicer  will  service  the  Home  Loans   directly  or  through  one  or  more
Subservicers.

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

                                    ARTICLE I

                                   DEFINITIONS

      Section  1.1.  Definitions.  For all  purposes of this Home Loan  Purchase
Agreement,  except as otherwise  expressly provided herein or unless the context
otherwise  requires,  capitalized  terms not otherwise defined herein shall have
the meanings  assigned to such terms in the Definitions  contained in Appendix A
to the Indenture,  dated [___________  ___], 20[__] (the  "Indenture"),  between
Home  Loan  Trust  200[__]-[__],  as  issuer,  and  [_____________________],  as
indenture  trustee,  which  is  incorporated  by  reference  herein.  All  other
capitalized terms used herein shall have the meanings specified herein.

<PAGE>

                                   ARTICLE II

                    SALE OF HOME LOANS AND RELATED PROVISIONS

      Section 2.1.  Sale of Home Loans.  (a) The Seller,  by the  execution  and
delivery of this Agreement,  does hereby sell,  assign,  set over, and otherwise
convey to the Purchaser,  without recourse, all of its right, title and interest
in, to and under the following,  and wherever  located:  (i) the Home Loans, all
interest  accruing thereon and all collections in respect thereof received on or
after the Cut-off Date;  (ii)  property  which secured a Home Loan and which has
been acquired by foreclosure or deed in lieu of foreclosure;  (iii) the interest
of the Seller in any insurance  policies in respect of the Home Loans;  and (iv)
all proceeds of the foregoing.  Such conveyance shall be deemed to be made, with
respect to the Cut-off Date Loan  Balances,  as of the Closing Date,  subject to
the receipt by the Seller of  consideration  therefor as provided  herein  under
clause (b) of Section 2.2.

      (b) In connection with such conveyance,  the Seller further agrees, at its
own  expense,  on or prior to the  Closing  Date to  indicate  in its  books and
records  that the Home Loans have been sold to the  Purchaser  pursuant  to this
Agreement and to deliver to the Purchaser  true and complete lists of all of the
Home Loans  specifying  for each Home Loan (i) its  account  number and (ii) its
Cut-off  Date  Loan  Balance.  Such  lists,  which  form  part of the Home  Loan
Schedule,  shall  be  marked  as  Exhibit  A to this  Agreement  and are  hereby
incorporated into and made a part of this Agreement.

      (c) On or before the Closing Date, in connection  with such  conveyance by
the Seller, the Seller shall on behalf of the Purchaser (1) with respect to each
Home  Loan,  deliver  to the  Master  Servicer  (or an  Affiliate  of the Master
Servicer)each  of the  documents or  instruments  described in clause (ii) below
(and the  Master  Servicer  shall hold (or cause  such  Affiliate  to hold) such
documents or instruments  in trust for the use and benefit of the  Noteholders),
(2) with respect to each MOM Loan,  deliver to and deposit  with the  Custodian,
the documents or  instruments  described in clauses (i) and (v) below,  (3) with
respect  to each  Home  Loan  that is not a MOM  Loan but is  registered  on the
MERS(R)  System,  deliver to and deposit with the  Custodian,  the  documents or
instruments described in clauses (i), (iv) and (v) below and (4) with respect to
each  Home  Loan  that is not a MOM Loan and is not  registered  on the  MERS(R)
System, deliver to and deposit with the Custodian,  the documents or instruments
described in clauses (i), (iii), (iv) and (v) below.

            (i) The original  Mortgage  Note  endorsed  without  recourse to the
      Indenture  Trustee and showing an unbroken chain of  endorsement  from the
      originator thereof to the Person endorsing it or, with respect to any Home
      Loan as to which the original  Mortgage Note has been  permanently lost or
      destroyed  and has not  been  replaced,  a Lost  Note  Affidavit  from the
      related seller or Residential  Funding  Company,  LLC stating the original
      Mortgage  Note was lost,  misplaced or destroyed  together  with a copy of
      such Note.

            (ii) The  original  Mortgage,  noting the presence of the MIN of the
      Home Loan and language  indicating that the Home Loan is a MOM Loan if the
      Home Loan is a MOM Loan, with evidence of recording indicated thereon, or,
      if the original Mortgage

                                      -2-
<PAGE>

      has not yet been returned from the public recording  office, a copy of the
      original Mortgage with evidence of recording indicated thereon.

            (iii) The  assignment  (which may be included in one or more blanket
      assignments  if permitted by applicable  law) of the Mortgage  recorded to
      "[_____________________]  as  indenture  trustee"  c/o  the  Seller  at an
      address specified by the Seller.

            (iv) Originals of any intervening  assignments of the Mortgage, with
      evidence of recording noted thereon or attached thereto, or a copy of such
      original  intervening  assignment  with  evidence of  recording  indicated
      thereon.

            (v) A true  and  correct  copy  of  each  assumption,  modification,
      consolidation  or  substitution  agreement,  if any,  relating to the Home
      Loan.

      Within the time period for the review of each  Custodial File set forth in
Section  2.03  of the  Custodial  Agreement,  if a  defect  or  omission  in any
Custodial File is discovered which may materially and adversely affect the value
of the related Home Loan, or the interests of the Indenture  Trustee (as pledgee
of the Home  Loans),  the  Noteholders,  the  Certificateholders  or the  Credit
Enhancer  in such Home Loan,  including  the  Seller's  failure  to deliver  any
document  required to be delivered to the  Custodian on behalf of the  Indenture
Trustee  (provided  that a Custodial File will not be deemed to contain a defect
for an  unrecorded  assignment  under  clause  (iii)  above  if the  Seller  has
submitted such assignment for recording or if such assignment is not required to
be recorded pursuant to the terms of the following paragraph),  the Seller shall
cure such defect,  repurchase the related Home Loan at the  Repurchase  Price or
substitute an Eligible  Substitute  Loan for the related Home Loan upon the same
terms  and   conditions  set  forth  in  Section  3.1  hereof  for  breaches  of
representations  and  warranties  as to the Home Loans.  As set forth in Section
2.03 of the Custodial  Agreement,  the Custodian  shall deliver to the Indenture
Trustee a  certificate  (the  "Interim  Certification")  to the effect  that all
documents  required to be delivered pursuant to this Subsection 2.1(c) have been
executed  and  received  and  that  such  documents  relate  to the  Home  Loans
identified  on the Home  Loan  Schedule,  except  for any  exceptions  listed on
Schedule B attached to such Interim Certification.

      Within 60 days after the receipt by the Master  Servicer of the  recording
information,  the  Seller at its own  expense  shall  complete  and  submit  for
recording in the appropriate public office for real property records each of the
assignments  referred to in clause  (iii)  above.  While such  assignment  to be
recorded is being  recorded,  the  Custodian  shall  retain a photocopy  of such
assignment.  If any  assignment is lost or returned  unrecorded to the Custodian
because of any defect  therein,  the Seller is required to prepare a  substitute
assignment  or cure such defect,  as the case may be, and the Seller shall cause
such assignment to be recorded in accordance with this paragraph.  In connection
with the  assignment  of any Home Loan  registered  on the MERS(R)  System,  the
Seller further agrees that it will cause, at the Seller's own expense, within 30
Business Days after the Closing Date,  the MERS(R)  System to indicate that such
Home Loans have been assigned by the Seller to the Purchaser in accordance  with
this  Agreement,  by the Purchaser to the Trust in accordance  with the terms of
the Trust Agreement and by the Trust,  to the Indenture  Trustee for the benefit
of the Noteholders, pursuant to the Indenture, by including (or deleting, in the
case of Home Loans which are  repurchased in accordance  with this Agreement) in
such  computer  files (a) the code in the field which  identifies  the  specific
Trust and

                                      -3-
<PAGE>

(b) the code in the field "Pool Field" which  identifies the series of the Notes
issued in connection  with such Home Loans.  The Seller  further  agrees that it
will not, and will not permit the Master Servicer to alter the codes  referenced
in this  paragraph  with  respect  to any  Home  Loan  during  the  term of this
Agreement,  the Trust  Agreement and the  Indenture,  unless and until such Home
Loan is repurchased in accordance with the terms of this Agreement.

      In the event that the Seller  delivers to the  Custodian  on behalf of the
Indenture Trustee any Mortgage Note or assignment in blank, the Seller shall, or
shall cause the Custodian to,  complete the endorsement of the Mortgage Note and
the  assignment  in  conjunction  with the Interim  Certification  issued by the
Custodian.

      In  instances  where an  original  Mortgage  or any  original  intervening
assignment of Mortgage was not, in accordance with clause (ii),  (iii),  (iv) or
(v) above (or  copies  thereof  as  permitted  in this  Section  2.1(c)  above),
delivered by the Seller to the  respective  Custodian  prior to or  concurrently
with the  execution and delivery of this  Agreement,  the Seller will deliver or
cause to be delivered the originals of such documents to such Custodian promptly
upon receipt thereof.

      The Purchaser hereby  acknowledges its acceptance of all right,  title and
interest to the property, conveyed to it pursuant to this Section 2.1.

      (d) The parties  hereto  intend  that the  transactions  set forth  herein
constitute  a sale by the Seller to the  Purchaser  of all the  Seller's  right,
title and  interest  in and to the Home Loans and other  property  as and to the
extent  described  above.  In the event the  transactions  set forth  herein are
deemed not to be a sale,  the Seller  hereby  grants to the Purchaser a security
interest in all of the Seller's  right,  title and interest in, to and under (i)
the Home Loans,  all interest  accruing  thereon and all  collections in respect
thereof  received on or after the Cut-off Date;  (ii)  property  which secured a
Home  Loan  and  which  has  been  acquired  by  foreclosure  or deed in lieu of
foreclosure;  (iii) the  interest  of the Seller in any  insurance  policies  in
respect of the Home  Loans;  and (iv) all  proceeds of the  foregoing,  and such
other property,  to secure all of the Seller's obligations  hereunder,  and this
Agreement shall constitute a security agreement under applicable law. The Seller
agrees to take or cause to be taken such actions and to execute such  documents,
including  without  limitation  the  filing  of all  necessary  UCC-1  financing
statements  filed in the State of Delaware  (which shall have been submitted for
filing within 10 days following the Closing Date), any  continuation  statements
with respect thereto and any amendments  thereto required to reflect a change in
the name or legal structure of the Seller or the filing of any additional  UCC-1
financing  statements due to the change in the principal  office or jurisdiction
of  organization  of the  Seller,  as are  necessary  to perfect and protect the
Purchaser's interests in each Home Loan and the proceeds thereof.

      Section 2.2.  Payment of Purchase Price.  (a) The "Purchase Price" for the
Home Loans shall be an amount equal to  $[__________]  in immediately  available
funds, together with the Certificates.

      (b) In  consideration of the sale of the Home Loans from the Seller to the
Purchaser  on the Closing  Date,  the  Purchaser  shall pay to the Seller on the
Closing Date by wire transfer of immediately  available  funds to a bank account
designated by the Seller, the amount specified

                                      -4-
<PAGE>

above in clause (a);  provided,  that such payment may be on a net funding basis
if agreed by the Seller and the Purchaser.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES;

                               REMEDIES FOR BREACH

      Section 3.1. Seller Representations and Warranties.  The Seller represents
and warrants to the Purchaser, as of the Closing Date (or if otherwise specified
below, as of the date so specified):

      (a) As to the Seller:

            (i) The  Seller  is a  limited  liability  company  duly  organized,
      validly  existing  and in good  standing  under  the  laws  governing  its
      creation and existence  and is or will be in  compliance  with the laws of
      each  state in which any  Mortgaged  Property  is  located  to the  extent
      necessary to ensure the enforceability of each mortgage loan in accordance
      with the terms of this Agreement;

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

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

            (iv)  The  execution   and  delivery  of  this   Agreement  and  the
      performance of the transactions contemplated hereby by the Seller will not
      violate any  provision of any existing law or  regulation  or any order or
      decree of any court  applicable  to the  Seller  or any  provision  of the
      certificate  of formation or limited  liability  company  agreement of the
      Seller,  or  constitute  a  material  breach of any  mortgage,  indenture,
      contract or other agreement to which the Seller is a party or by which the
      Seller may be bound;

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

                                      -5-
<PAGE>

            (vi)  This  Agreement   constitutes  a  legal,   valid  and  binding
      obligation  of the Seller,  enforceable  against the Seller in  accordance
      with its terms,  except as  enforceability  may be  limited by  applicable
      bankruptcy, insolvency,  reorganization,  moratorium or other similar laws
      now or hereafter in effect affecting the enforcement of creditors'  rights
      in  general  and except as such  enforceability  may be limited by general
      principles  of equity  (whether  considered  in a proceeding  at law or in
      equity);

            (vii) This Agreement  constitutes a valid transfer and assignment to
      the  Purchaser  of all right,  title and interest of the Seller in, to and
      under  the Home  Loans,  all  monies  due or to  become  due with  respect
      thereto,  and all proceeds of such Cut-off Date Loan Balances with respect
      to the Home Loans and such funds as are from time to time deposited in the
      Custodial Account (excluding any investment earnings thereon) as assets of
      the Trust and all other property specified in the definition of "Trust" as
      being part of the corpus of the Trust  conveyed  to the  Purchaser  by the
      Seller;

            (viii)  The Seller is not in  default  with  respect to any order or
      decree of any court or any  order,  regulation  or demand or any  federal,
      state,   municipal  or  governmental  agency,  which  default  might  have
      consequences  that would  materially  and  adversely  affect the condition
      (financial  or other) or  operations  of the Seller or its  properties  or
      might  have  consequences  that  would  materially  adversely  affect  its
      performance hereunder; and

            (ix) The Seller has not  transferred the Home Loans to the Purchaser
      with any intent to hinder, delay or defraud any of its creditors.

      (b) As to the Home Loans:

            (i) The information set forth in the Home Loan Schedule with respect
      to each Home Loan is true and correct in all  material  respects as of the
      date or dates respecting which such information is furnished;

            (ii) [Reserved];

            (iii)  The  related  Mortgage  Note and the  Mortgage  have not been
      assigned or pledged,  the Seller has good and marketable title thereto and
      the Seller is the sole owner and holder of the Home Loan free and clear of
      any  and  all  liens,  claims,   encumbrances,   participation  interests,
      equities,  pledges,  charges or security  interests  of any nature and has
      full right and authority,  under all  governmental  and regulatory  bodies
      having  jurisdiction  over the ownership of the  applicable  Home Loans to
      sell and assign the same pursuant to this Agreement;

            (iv) To the best of Seller's  knowledge,  there is no valid  offset,
      defense or counterclaim of any obligor under any Mortgage;

            (v) To the  best  of  Seller's  knowledge,  there  is no  delinquent
      recording  or other tax or fee or  assessment  lien  against  any  related
      Mortgaged Property;

                                      -6-
<PAGE>

            (vi) To the  best of  Seller's  knowledge,  there  is no  proceeding
      pending or threatened for the total or partial condemnation of the related
      Mortgaged Property;

            (vii) To the best of Seller's knowledge,  there are no mechanics' or
      similar liens or claims which have been filed for work,  labor or material
      affecting the related Mortgaged  Property which are, or may be liens prior
      or equal to, or subordinate with, the lien of the related Mortgage, except
      liens  which are fully  insured  against  by the  title  insurance  policy
      referred to in clause (xi);

            (viii) As of the  Cut-off  Date,  none of the Home  Loans were 30 or
      more days delinquent;

            (ix) For each Home Loan, the related Custodial File contains each of
      the documents and instruments specified to be included therein;

            (x) Each Home Loan at the time it was made  complied in all material
      respects with applicable  local,  state and federal laws including but not
      limited to all applicable anti-predatory lending laws and usury laws;

            (xi) A policy of title  insurance in the form and amount required by
      the Program  Guide was  effective  as of the closing of each Home Loan and
      each such  policy is valid and  remains  in full force and  effect,  and a
      title  search  or other  assurance  of  title  customary  in the  relevant
      jurisdiction  was  obtained  with respect to each Home Loan as to which no
      title insurance policy or binder was issued;

            (xii)  None of the  Mortgaged  Properties  is a mobile  home that is
      permanently   attached  to  its  foundation  and  none  of  the  Mortgaged
      Properties  are  manufactured  housing  units  that  are  not  permanently
      attached to their foundation;

            (xiii)  Approximately [___]% of the Cut-off Date Loan Balance of the
      Home   Loans   are   secured   by   Mortgaged    Properties   located   in
      [________________];

            (xiv)  Approximately  [___]% of the Home Loans by Cut-Off  Date Loan
      Balance, had a Combined Loan-to-Value Ratio in excess of 100%;

            (xv) Approximately [___]% of the mortgage loans in the mortgage pool
      are loans that,  under applicable state or local law in effect at the time
      of  origination  of the  loan,  are  referred  to as (1)  "high  cost"  or
      "covered"  loans or (2) any other similar  designation  if the law imposes
      greater   restrictions  or  additional  legal  liability  for  residential
      mortgage loans with high interest rates, points and/or fees;

            (xvi) None of the proceeds of any Home Loan were used to finance the
      purchase of single premium credit insurance policies;

            (xvii) The Seller  will  submit for filing or cause to be  submitted
      for filing UCC-1 financing statements in accordance with the terms of this
      Agreement;

            (xviii) Each  Mortgage is  substantially  similar to one another and
      constitutes a legal, valid and binding obligation of the related Mortgagor
      enforceable in accordance

                                      -7-
<PAGE>

      with its terms  except as may be  limited  by  bankruptcy,  insolvency  or
      similar laws affecting generally the enforcement of creditor's rights;

            (xix) To the  best of  Seller's  knowledge,  the  physical  property
      subject to each Mortgage is free of material damage and is in good repair;

            (xx) The Seller  has not  received a notice of default of any senior
      mortgage loan related to a Mortgaged  Property which has not been cured by
      a party other than the related Subservicer;

            (xxi) No Home Loan has a prepayment penalty term that extends beyond
      five years after the date of origination;

            (xxii) None of the Home Loans are reverse Home Loans;

            (xxiii)  None of the Home  Loans  have a  remaining  term to  stated
      maturity of less than [___] months. As of the Cut-off Date, the Loan Rates
      on the Home Loans range between  [____]% per annum and [______]% per annum
      and the weighted average Loan Rate is  approximately  [______]% per annum.
      The weighted  average  remaining term to stated maturity of the Home Loans
      as of the Cut-off Date is approximately [____] months;

            (xxiv) (A) Each  Mortgaged  Property  with respect to the Home Loans
      consists  of a  single  parcel  of  real  property  with a  single  family
      residence  erected  thereon,   [a  two-to-four  family  residence  erected
      thereon,  or improved by an  individual  condominium  unit,  planned  unit
      development, manufactured home, multi-family mixed-use attachment, modular
      unit or  townhouse.  (B) With respect to the Home Loans (i)  approximately
      [___]%  (by  Cut-off  Date Loan  Balance)  are  secured  by real  property
      improved by individual  condominium  units,  modular  units,  manufactured
      homes,  multi-family  mixed-use  attachments,  planned  unit  developments
      (attached and detached) or  townhouses/rowhouses  (attached and detached),
      (ii)  approximately  [_____]% (by Cut-off  Date Loan  Balance) of the Home
      Loans are secured by real property with a single family residence  erected
      thereon and (iii) approximately  [____]% (by Cut-off Date Loan Balance) of
      the Home Loans are  secured by real  property  with a  two-to-four  family
      residence];

            (xxv) Approximately  [____]% of the Home Loans are secured by second
      mortgages or deeds of trust;

            (xxvi) If any of the Home Loans are secured by a leasehold interest,
      with respect to each leasehold interest,  the use of leasehold estates for
      residential  properties  is an  accepted  practice  in the area  where the
      related Mortgaged Property is located;  residential  property in such area
      consisting  of  leasehold  estates  is  readily  marketable;  the lease is
      recorded  and no party is in any way in  breach of any  provision  of such
      lease; the leasehold is in full force and effect and is not subject to any
      prior lien or encumbrance by which the leasehold could be terminated;  and
      the remaining  term of the lease does not  terminate  less than five years
      after the maturity date of such Home Loan;

                                      -8-
<PAGE>

            (xxvii) Each Subservicer meets all applicable requirements under the
      Servicing  Agreement,  is properly qualified to service the Home Loans and
      has been  servicing the Home Loans prior to the Cut-off Date in accordance
      with the terms of the Program Guide;

            (xxviii) For each Home Loan,  if required,  as of the Cut-off  Date,
      flood insurance has been obtained which meets all applicable  requirements
      of Section 3.04 of the  Servicing  Agreement.  For each Home Loan,  hazard
      insurance has been obtained  which meets all  applicable  requirements  of
      Section 3.04 of the Servicing Agreement;

            (xxix) There is no material default,  breach,  violation or event of
      acceleration existing under the terms of any Mortgage Note or Mortgage and
      no event which,  with notice and  expiration  of any grace or cure period,
      would  constitute  a  material  default,  breach,  violation  or  event of
      acceleration under the terms of any Mortgage Note or Mortgage, and no such
      material  default,  breach,  violation or event of  acceleration  has been
      waived by the Seller or by any other  entity  involved in  originating  or
      servicing a Home Loan;

            (xxx) No  instrument  of  release  or waiver  has been  executed  in
      connection  with the Home Loans,  and no Mortgagor has been  released,  in
      whole or in part from its obligations in connection with a Home Loan;

            (xxxi) With respect to each Home Loan that is a second lien,  either
      (i) no consent for the Home Loan was required by the holder of the related
      prior  lien or  liens  or (ii)  such  consent  has  been  obtained  and is
      contained in the Custodial File;

            (xxxii) With respect to each Home Loan,  either (i) the Home Loan is
      assumable  pursuant to the terms of the  Mortgage  Note,  or (ii) the Home
      Loan contains a customary provision for the acceleration of the payment of
      the unpaid  principal  balance  of the Home Loan in the event the  related
      Mortgaged  Property  is sold  without the prior  consent of the  mortgagee
      thereunder;

            (xxxiii)  Each  Custodial  File  either  contains  (a)  an  original
      Mortgage  Note or (b)  with  respect  to any  Home  Loan as to  which  the
      original  Mortgage Note has been permanently lost or destroyed and has not
      been replaced, a Lost Note Affidavit together with a copy of such Mortgage
      Note;

            (xxxiv) No Home Loan was  originated on or after October 1, 2002 and
      before March 7, 2003, which is secured by property located in the State of
      Georgia;

            (xxxv) No Home Loan, except as provided in clause (xxxvi), is a High
      Cost Loan or Covered  Loan,  as  applicable  (as such terms are defined in
      Appendix E of the Standard & Poor's Glossary For File Format For LEVELS(R)
      Version  5.7   (attached   hereto  as  Exhibit  B));   provided   that  no
      representation  and warranty is made in this clause (xxxv) with respect to
      any Home Loan secured by property  located in the States of Kansas or West
      Virginia; and

                                      -9-
<PAGE>

            (xxxvi)  As of the  Cut-Off  Date,  approximately  [__]% of the Home
      Loans  were  subject to the Home  Ownership  and  Protection  Act of 1994,
      referred to as the Homeownership Act.

      Upon  discovery  by Seller or upon notice from the  Purchaser,  the Credit
Enhancer, the Issuer, the Owner Trustee, the Indenture Trustee or the Custodian,
as applicable, of a breach of any representation or warranty in clause (a) above
which materially and adversely affects the interests of the  Securityholders  or
the Credit  Enhancer in any Home Loan,  the Seller shall,  within 45 days of its
discovery or its receipt of notice of such  breach,  either (i) cure such breach
in all material  respects or (ii) to the extent that such breach is with respect
to a Home Loan or a Related Document,  either (A) repurchase such Home Loan from
the  Trust at the  Repurchase  Price,  or (B)  substitute  one or more  Eligible
Substitute  Loans for such Home Loan,  in each case in the manner and subject to
the conditions and limitations set forth below.

      (c) Upon  discovery by the Seller or upon notice from the  Purchaser,  the
Credit Enhancer,  the Issuer,  the Owner Trustee,  the Indenture  Trustee or the
Custodian,  as  applicable,  of a breach of any  representation  or  warranty in
clause  (b) above  with  respect  to any Home Loan or upon the  occurrence  of a
Repurchase  Event that  materially  and  adversely  affects the interests of the
Securityholders  or the Credit  Enhancer or of the  Purchaser  in such Home Loan
(notice of which shall be given to the Purchaser by the Seller,  if it discovers
the same),  notwithstanding  the Seller's lack of knowledge  with respect to the
substance of such  representation  and warranty or Repurchase  Event, the Seller
shall,  within 90 days after the earlier of its  discovery  or receipt of notice
thereof, either cure such breach or Repurchase Event in all material respects or
either (i) repurchase such Home Loan from the Trust at the Repurchase  Price, or
(ii)  substitute  one or more Eligible  Substitute  Loans for such Home Loan, in
each case in the manner and subject to the  conditions  set forth below.  If the
breach of  representation  and  warranty  that gave  rise to the  obligation  to
repurchase  or  substitute  a Home Loan  pursuant  to this  Section  3.1 was the
representation and warranty set forth in clause (x) of Section 3.1(b),  then the
Seller shall pay,  concurrently with and in addition to the remedies provided in
the preceding  sentence,  an amount equal to any  liability,  penalty or expense
that was actually  incurred and paid out of or on behalf of the Trust,  and that
directly  resulted  from  such  breach,  or if  incurred  and paid by the  Trust
thereafter,  concurrently  with such payment.  The Repurchase Price for any such
Home Loan  repurchased  by the  Seller  and any  amounts  paid by the  Seller in
connection  with the  preceding  sentence  shall be  deposited  or  caused to be
deposited  by the Master  Servicer in the  Custodial  Account  maintained  by it
pursuant to Section 3.02 of the Servicing Agreement.

      The Seller may only substitute an Eligible  Substitute Loan or Loans for a
Deleted Loan pursuant to this Section 3.1(c) if the Seller obtains an Opinion of
Counsel generally to the effect that the substitution of an Eligible  Substitute
Loan or Loans for a Deleted Loan will not cause an entity level federal or state
income  tax to be imposed on the  Trust.  The Seller  shall also  deliver to the
Custodian on behalf of the Trust, with respect to such Eligible  Substitute Loan
or Loans,  the original  Mortgage Note and all other documents and agreements as
are required by Section  2.1(c),  with the Mortgage Note endorsed as required by
Section  2.1(c).  No  substitution  will be made in any calendar month after the
Determination Date for such month. Monthly Payments due with respect to Eligible
Substitute Loans in the month of substitution shall not be part of the Trust and
will be retained by the Master  Servicer and remitted by the Master  Servicer to
the Seller on the next succeeding Payment Date, provided that a payment at least
equal to the applicable Monthly Payment has been received by the Trust, for such
month in respect of the

                                      -10-
<PAGE>

Deleted  Loan.  For the month of  substitution,  distributions  to the Custodial
Account pursuant to the Servicing Agreement will include the Monthly Payment due
on a Deleted Loan for such month and  thereafter the Seller shall be entitled to
retain all amounts received in respect of such Deleted Loan. The Master Servicer
shall amend or cause to be amended the Home Loan Schedule to reflect the removal
of such Deleted Loan and the  substitution  of the Eligible  Substitute  Loan or
Loans and the Master  Servicer  shall  deliver the amended Home Loan Schedule to
the Indenture Trustee.  Upon such substitution,  the Eligible Substitute Loan or
Loans  shall  be  subject  to the  terms  of this  Agreement  and the  Servicing
Agreement  in all  respects,  the  Seller  shall  be  deemed  to have  made  the
representations  and warranties  (other than any statistical  representation  or
warranty)  with  respect to the  Eligible  Substitute  Loan set forth in Section
3.1(b) as of the date of  substitution,  and the Seller  shall be  obligated  to
repurchase  or  substitute  for  any  Eligible  Substitute  Loan  as to  which a
Repurchase  Event has  occurred  as  provided  herein.  In  connection  with the
substitution  of one or more Eligible  Substitute  Loans for one or more Deleted
Loans,   the  Master  Servicer  will  determine  the  amount  (such  amount,   a
"Substitution  Adjustment  Amount"),  if any, by which the  aggregate  principal
balance of all such Eligible  Substitute Loans as of the date of substitution is
less than the  aggregate  principal  balance of all such  Deleted  Loans  (after
application of the principal portion of the Monthly Payments due in the month of
substitution that are to be distributed to the Custodial Account in the month of
substitution).  The Seller shall deposit the amount of such  shortfall  into the
Custodial  Account  on  the  day  of  substitution,  without  any  reimbursement
therefor.

      Upon  receipt  by the  Indenture  Trustee  on  behalf of the Trust and the
Custodian of written notification, signed by a Servicing Officer, of the deposit
of such Repurchase Price or of such substitution of an Eligible  Substitute Loan
(together  with  the  related  Mortgage  File)  and  deposit  of any  applicable
Substitution  Adjustment  Amount as provided  above,  the Master Servicer (or an
Affiliate  of the  Master  Servicer)  or the  Custodian,  as the case may be, on
behalf of the  Indenture  Trustee,  shall  release  the  contents of any related
Mortgage  File  in its  possession  for  the  Home  Loan  being  repurchased  or
substituted  for and the  Indenture  Trustee on behalf of the Trust shall,  upon
written direction from the Master Servicer, execute and deliver such instruments
of transfer or assignment prepared by the Master Servicer,  in each case without
recourse,  as shall be necessary to vest in the Seller or its designee such Home
Loan  released  pursuant  hereto and  thereafter  such Home Loan shall not be an
asset of the Trust.

      It is understood  and agreed that the obligation of the Seller to cure any
breach,  or to repurchase  or  substitute  for, any Home Loan as to which such a
breach  has  occurred  and  is  continuing  shall  constitute  the  sole  remedy
respecting   such  breach   available  to  the   Purchaser,   the  Issuer,   the
Certificateholders  (or the Owner  Trustee on behalf of the  Certificateholders)
and the  Noteholders  (or the  Indenture  Trustee on behalf of the  Noteholders)
against the Seller.

      It is understood  and agreed that the  representations  and warranties set
forth in this Section 3.1 shall  survive  delivery of the  respective  Custodial
Files to the Indenture Trustee, or the Custodian.

                                      -11-
<PAGE>

                                   ARTICLE IV

                               SELLER'S COVENANTS

      Section 4.1.  Covenants of the Seller.  The Seller hereby  covenants that,
except for the transfer hereunder,  the Seller will not sell, pledge,  assign or
transfer to any other Person, or grant,  create, incur or assume any Lien on any
Home Loan, or any interest therein. The Seller will notify the Indenture Trustee
in writing,  as assignee of the  Purchaser,  of the existence of any Lien (other
than as provided above) on any Home Loan immediately upon discovery thereof; and
the Seller will defend the right,  title and interest of the Issuer, as assignee
of the  Purchaser,  in, to and under the Home Loans  against all claims of third
parties claiming through or under the Seller; provided, however, that nothing in
this  Section 4.1 shall be deemed to apply to any Liens for  municipal  or other
local taxes and other governmental charges if such taxes or governmental charges
shall not at the time be due and  payable or if the Seller  shall  currently  be
contesting the validity thereof in good faith by appropriate proceedings.

                                   ARTICLE V

                                    SERVICING

      Section 5.1. Servicing. The Seller will service the Home Loans pursuant to
the terms and  conditions of the  Servicing  Agreement and will service the Home
Loans directly or through one or more subservicers in accordance therewith.

                                   ARTICLE VI

                     LIMITATION ON LIABILITY OF THE SELLER

      Section 6.1. Limitation on Liability of the Seller. None of the directors,
officers,  employees or agents of the Seller shall be under any liability to the
Purchaser,  it being  expressly  understood that all such liability is expressly
waived and released as a condition of, and as  consideration  for, the execution
of this Agreement.  Except as and to the extent expressly  provided herein or in
the  Servicing  Agreement,  the Seller  shall not be under any  liability to the
Trust,  the Owner Trustee,  the Indenture  Trustee or the  Securityholders.  The
Seller and any  director,  officer,  employee or agent of the Seller 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.

                                   ARTICLE VII

                                   TERMINATION

      Section 7.1. Termination.  The respective obligations and responsibilities
of the Seller and the Purchaser  created hereby shall terminate,  except for the
Seller's indemnity  obligations as provided herein,  upon the termination of the
Trust pursuant to the terms of the Trust Agreement.

                                      -12-
<PAGE>

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

      Section 8.1. Amendment. This Agreement may be amended from time to time by
the Seller and the Purchaser by written  agreement  signed by the Seller and the
Purchaser with the consent of the Credit Enhancer (so long as no Credit Enhancer
Default has occurred and is continuing), which consent shall not be unreasonably
withheld.

      Section  8.2.  GOVERNING  LAW.  THIS  AGREEMENT  SHALL BE  GOVERNED BY AND
CONSTRUED IN ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW YORK,  WITHOUT REGARD
TO ITS CONFLICT OF LAW PROVISIONS  (OTHER THAN SECTION 5-1401 AND SECTION 5-1402
OF THE NEW YORK  GENERAL  OBLIGATIONS  LAW),  AND THE  OBLIGATIONS,  RIGHTS  AND
REMEDIES OF THE PARTIES  HEREUNDER  SHALL BE DETERMINED IN ACCORDANCE  WITH SUCH
LAWS.

      Section 8.3. Notices.  All demands,  notices and communications  hereunder
shall be in writing  and shall be deemed to have been duly  given if  personally
delivered  at or  mailed by  registered  mail,  postage  prepaid,  addressed  as
follows:

                           (i) if to the Seller:
                           Residential Funding Company, LLC
                           8400 Normandale Lake Boulevard
                           Suite 250
                           Minneapolis, Minnesota 55437
                           Attention: Managing Director, Structured Finance

or, such other address as may hereafter be furnished to the Purchaser in writing
by the Seller.

                           (ii) if to the Purchaser:
                           Residential Funding Mortgage Securities II, Inc.
                           8400 Normandale Lake Boulevard
                           Suite 250
                           Minneapolis, Minnesota 55437
                           Attention: Managing Director, Structured Finance

                           (iii) if to the Custodian:
                           [_____________________]
                           [_____________________]
                           [_____________________]
                           Attention: [_____________________]

or such other  address as may hereafter be furnished to the Seller in writing by
the Purchaser.

      Section  8.4.  Severability  of  Provisions.  If any  one or  more  of the
covenants,  agreements,  provisions  of  terms of this  Agreement  shall be held
invalid for any reason whatsoever, then such covenants,  agreements,  provisions
or terms shall be deemed severable from the remaining

                                      -13-
<PAGE>

covenants, agreements, provisions or terms of this Agreement and shall in no way
affect the validity of enforceability of the other provisions of this Agreement.

      Section 8.5.  Relationship of Parties.  Nothing herein  contained shall be
deemed or construed to create a partnership or joint venture between the parties
hereto,  and the  services of the Seller  shall be  rendered  as an  independent
contractor and not as agent for the Purchaser.

      Section 8.6.  Counterparts.  This Agreement may be executed in one or more
counterparts and by the different parties hereto on separate counterparts,  each
of  which,  when so  executed,  shall  be  deemed  to be an  original  and  such
counterparts, together, shall constitute one and the same agreement.

      Section 8.7. Further  Agreements.  The Purchaser and the Seller each agree
to execute and deliver to the other such  additional  documents,  instruments or
agreements as may be necessary or appropriate to effectuate the purposes of this
Agreement.

      Section 8.8. Intention of the Parties.  It is the intention of the parties
that the  Purchaser is  purchasing,  and the Seller is selling,  the Home Loans,
rather  than a loan by the  Purchaser  to the Seller  secured by the Home Loans.
Accordingly, the parties hereto each intend to treat the transaction for federal
income tax purposes as a sale by the Seller, and a purchase by the Purchaser, of
the Home Loans.  The Purchaser  will have the right to review the Home Loans and
the Related Documents to determine the  characteristics  of the Home Loans which
will affect the federal income tax consequences of owning the Home Loans and the
Seller will cooperate with all reasonable  requests made by the Purchaser in the
course of such review.

      Section 8.9.  Successors and Assigns;  Assignment of This Agreement.  This
Agreement  shall  bind and inure to the  benefit  of and be  enforceable  by the
Seller,  Purchaser and their respective  successors and assigns. The obligations
of the Seller  under this  Agreement  cannot be assigned or delegated to a third
party without the consent of the Credit  Enhancer (so long as no Credit Enhancer
Default has occurred and is continuing)  and the Purchaser,  which consent shall
be at the Credit Enhancer's and the Purchaser's sole discretion, except that the
Credit  Enhancer  and the  Purchaser  acknowledge  and agree that the Seller may
assign its obligations  hereunder to any Affiliate of the Seller,  to any Person
succeeding to the business of the Seller, to any Person into which the Seller is
merged and to any Person resulting from any merger,  conversion or consolidation
to which  the  Seller  is a  party.  The  parties  hereto  acknowledge  that the
Purchaser is acquiring  the Home Loans for the purpose of  contributing  them to
the Issuer. Pursuant to the terms of the Trust Agreement,  the Issuer will issue
and  transfer to or at the  direction of the  Purchaser,  the  Certificates  and
pursuant to the terms of the Indenture, the Issuer will issue and transfer to or
at the direction of the  Purchaser,  the Notes secured by the Home Loans.  As an
inducement to the Purchaser to purchase the Home Loans, the Seller  acknowledges
and consents to (i) the  assignment by the Purchaser to the Issuer of all of the
Purchaser's rights against the Seller pursuant to this Agreement insofar as such
rights relate to Home Loans  transferred to the Issuer and to the enforcement or
exercise of any right or remedy against the Seller pursuant to this Agreement by
the Issuer,  (ii) the enforcement or exercise of any right or remedy against the
Seller  pursuant to this  Agreement  by or on behalf of the Issuer and (iii) the
Issuer's  pledge of its interest in this Agreement to the Indenture  Trustee and
the enforcement by the Indenture Trustee of any such right or remedy against the
Seller following an Event of Default under the Indenture.  Such enforcement of a
right or remedy by the Issuer or the Indenture Trustee, as applicable, shall

                                      -14-
<PAGE>

have the same force and effect as if the right or remedy  had been  enforced  or
exercised by the Purchaser directly.

      Section 8.10. Survival.  The representations and warranties made herein by
the Seller and the provisions of Article VI hereof shall survive the purchase of
the Home Loans hereunder.

                                      -15-
<PAGE>

      IN WITNESS  WHEREOF,  the Seller and the Purchaser have caused their names
to be signed to this Home Loan Purchase  Agreement by their respective  officers
thereunto duly authorized as of the day and year first above written.

                                                RESIDENTIAL FUNDING MORTGAGE
                                                SECURITIES II, INC.
                                                as Purchaser

                                                By:_____________________________
                                                Name:
                                                Title:

                                                RESIDENTIAL FUNDING COMPANY, LLC
                                                as Seller

                                                By:_____________________________
                                                Name:
                                                Title:

<PAGE>

                                    EXHIBIT A

                               HOME LOAN SCHEDULE

                             (Provided Upon Request)

                                      A-1
<PAGE>

                                    EXHIBIT B

          APPENDIX E OF THE STANDARD & POOR'S GLOSSARY FOR FILE FORMAT
                            FOR LEVELS(R) VERSION 5.7

Standard & Poor's has categorized loans governed by anti-predatory  lending laws
in the Jurisdictions listed below into three categories based upon a combination
of factors  that  include (a) the risk  exposure  associated  with the  assignee
liability and (b) the tests and  thresholds  set forth in those laws.  Note that
certain  loans  classified  by the  relevant  statute as Covered are included in
Standard & Poor's High Cost Loan Category  because they included  thresholds and
tests  that  are  typical  of  what is  generally  considered  High  Cost by the
industry.

Standard & Poor's High Cost Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable
                                                         Date                          Anti-Predatory Lending Law
---------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                          <C>
Arkansas                           Arkansas Home Loan Protection Act, Ark. Code        High Cost Home Loan
                                   Ann. ss.ss. 23-53-101 et seq.

                                   Effective July 16, 2003
---------------------------------------------------------------------------------------------------------------------
Cleveland Heights, OH              Ordinance No. 72-2003 (PSH), Mun. Code ss.ss.       Covered Loan
                                   757.01 et seq.

                                   Effective June 2, 2003
---------------------------------------------------------------------------------------------------------------------
Colorado                           Consumer Equity Protection, Colo. Stat. Ann.        Covered Loan
                                   ss.ss. 5-3.5-101 et seq.

                                   Effective   for  covered   loans  offered  or
                                   entered  into on or after  January  1,  2003.
                                   Other  provisions  of the Act took  effect on
                                   June 7, 2002
---------------------------------------------------------------------------------------------------------------------
Connecticut                        Connecticut Abusive Home Loan Lending Practices     High Cost Home Loan
                                   Act, Conn. Gen. Stat. ss.ss. 36a-746 et seq.

                                   Effective October 1, 2001
---------------------------------------------------------------------------------------------------------------------
District of Columbia               Home Loan Protection Act, D.C. Code ss.ss.          Covered Loan
                                   26-1151.01 et seq.

                                   Effective for loans closed on or after January
                                   28, 2003
---------------------------------------------------------------------------------------------------------------------
Florida                            Fair Lending Act, Fla. Stat. Ann. ss.ss. 494.0078   High Cost Home Loan
                                   et seq.

                                   Effective October 2, 2002
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      B-1
<PAGE>

Standard & Poor's High Cost Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable
                                                         Date                          Anti-Predatory Lending Law
---------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                          <C>
Georgia (Oct. 1, 2002 - Mar. 6,    Georgia Fair Lending Act, Ga. Code Ann. ss.ss.      High Cost Home Loan
2003)                              7-6A-1 et seq.

                                   Effective October 1, 2002 - March 6, 2003
---------------------------------------------------------------------------------------------------------------------
Georgia as amended (Mar. 7, 2003   Georgia Fair Lending Act, Ga. Code Ann. ss.ss.      High Cost Home Loan
- current)                         7-6A-1 et seq.

                                   Effective for loans closed on or after March 7,
                                   2003
---------------------------------------------------------------------------------------------------------------------
HOEPA Section 32                   Home Ownership and Equity Protection Act of         High Cost Loan
                                   1994, 15 U.S.C. ss. 1639, 12 C.F.R. ss.ss.
                                   226.32 and 226.34

                                   Effective October 1, 1995, amendments October
                                   1, 2002
---------------------------------------------------------------------------------------------------------------------
Illinois                           High Risk Home Loan Act, Ill. Comp. Stat. tit.      High Risk Home Loan
                                   815, ss.ss. 137/5 et seq.

                                   Effective January 1, 2004 (prior to this date,
                                   regulations under Residential Mortgage License
                                   Act effective from May 14, 2001)
---------------------------------------------------------------------------------------------------------------------
Kansas                             Consumer Credit Code, Kan. Stat. Ann. ss.ss.        High Loan to Value Consumer
                                   16a-1-101 et seq.                                   Loan (id. ss. 16a-3-207) and;
                                                                                -------------------------------------
                                   Sections 16a-1-301 and 16a-3-207 became             High APR Consumer Loan (id.
                                   effective April 14, 1999; Section 16a-3-308a        ss. 16a-3-308a)
                                   became effective July 1, 1999
---------------------------------------------------------------------------------------------------------------------
Kentucky                           2003 KY H.B. 287 - High Cost Home Loan Act, Ky.     High Cost Home Loan
                                   Rev. Stat. ss.ss. 360.100 et seq.

                                   Effective June 24, 2003
---------------------------------------------------------------------------------------------------------------------
Maine                              Truth in Lending, Me. Rev. Stat. tit. 9-A, ss.ss.   High Rate High Fee Mortgage
                                   8-101 et seq.

                                   Effective September 29, 1995 and as amended
                                   from time to time
---------------------------------------------------------------------------------------------------------------------
Massachusetts                      Part 40 and Part 32, 209 C.M.R. ss.ss.              High Cost Home Loan
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      B-2
<PAGE>

Standard & Poor's High Cost Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable
                                                         Date                          Anti-Predatory Lending Law
---------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                          <C>
                                   32.00 et seq. and 209 C.M.R. ss.ss. 40.01
                                   et seq.

                                   Effective March 22, 2001 and amended from time
                                   to time
---------------------------------------------------------------------------------------------------------------------
Nevada                             Assembly Bill No. 284, Nev. Rev. Stat. ss.ss.       Home Loan
                                   598D.010 et seq.

                                   Effective October 1, 2003
---------------------------------------------------------------------------------------------------------------------
New Jersey                         New Jersey Home Ownership Security Act of 2002,     High Cost Home Loan
                                   N.J. Rev. Stat. ss.ss. 46:10B-22 et seq.

                                   Effective for loans closed on or after November
                                   27, 2003
---------------------------------------------------------------------------------------------------------------------
New Mexico                         Home Loan Protection Act, N.M. Rev. Stat. ss.ss.    High Cost Home Loan
                                   58-21A-1 et seq.

                                   Effective as of January 1, 2004; Revised as of
                                   February 26, 2004
---------------------------------------------------------------------------------------------------------------------
New York                           N.Y. Banking Law Article 6-l                        High Cost Home Loan

                                   Effective for applications made on or after
                                   April 1, 2003
---------------------------------------------------------------------------------------------------------------------
North Carolina                     Restrictions and Limitations on High Cost Home      High Cost Home Loan
                                   Loans, N.C. Gen. Stat. ss.ss. 24-1.1E et seq.

                                   Effective  July 1, 2000;  amended  October 1,
                                   2003 (adding open-end lines of credit)
---------------------------------------------------------------------------------------------------------------------
Ohio                               H.B. 386 (codified in various sections of the       Covered Loan
                                   Ohio Code), Ohio Rev. Code Ann.
                                   ss.ss. 1349.25 et seq.

                                   Effective May 24, 2002
---------------------------------------------------------------------------------------------------------------------
Oklahoma                           Consumer Credit Code (codified in various           Subsection 10 Mortgage
                                   sections of Title 14A)

                                   Effective July 1, 2000; amended effective
                                   January 1, 2004
---------------------------------------------------------------------------------------------------------------------
South Carolina                     South Carolina High Cost and                        High Cost Home Loan
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      B-3
<PAGE>

Standard & Poor's High Cost Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable
                                                         Date                          Anti-Predatory Lending Law
---------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                          <C>
                                   Consumer Home Loans Act, S.C. Code Ann.
                                   ss.ss. 37-23-10 et seq.

                                   Effective for loans taken on or after January
                                   1, 2004
---------------------------------------------------------------------------------------------------------------------
West Virginia                      West Virginia Residential Mortgage Lender,          West Virginia Mortgage Loan
                                   Broker and Servicer Act, W. Va. Code Ann. ss.ss.    Act Loan
                                   31-17-1 et seq.

                                   Effective June 5, 2002
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      B-4
<PAGE>

Standard & Poor's Covered Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable
                                                         Date                          Anti-Predatory Lending Law
---------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                          <C>
Georgia (Oct. 1, 2002 - Mar. 6,    Georgia Fair Lending Act, Ga. Code Ann. ss.ss.      Covered Loan
2003)                              7-6A-1 et seq.

                                   Effective October 1, 2002 - March 6, 2003
---------------------------------------------------------------------------------------------------------------------
New Jersey                         New Jersey Home Ownership Security Act of 2002,     Covered Home Loan
                                   N.J. Rev. Stat. ss.ss. 46:10B-22 et seq.

                                   Effective November 27, 2003 - July 5, 2004
---------------------------------------------------------------------------------------------------------------------
</TABLE>

Standard & Poor's Home Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable
                                                         Date                          Anti-Predatory Lending Law
---------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                          <C>
Georgia (Oct. 1, 2002 - Mar. 6,    Georgia Fair Lending Act, Ga. Code Ann. ss.ss.      Home Loan
2003)                              7-6A-1 et seq.

                                    Effective October 1, 2002 - March 6, 2003
---------------------------------------------------------------------------------------------------------------------
New Jersey                         New Jersey Home Ownership Security Act of 2002,     Home Loan
                                   N.J. Rev. Stat. ss.ss. 46:10B-22 et seq.

                                   Effective for loans closed on or after November
                                   27, 2003
---------------------------------------------------------------------------------------------------------------------
New Mexico                         Home Loan Protection Act, N.M. Rev. Stat. ss.ss.    Home Loan
                                   58-21A-1 et seq.

                                   Effective as of January 1, 2004; Revised as of
                                   February 26, 2004
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      B-5
<PAGE>

Standard & Poor's Home Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable
                                                         Date                          Anti-Predatory Lending Law
---------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                          <C>

North Carolina                     Restrictions and Limitations on High Cost Home      Consumer Home Loan
                                   Loans, N.C. Gen. Stat. ss.ss. 24-1.1E et seq.

                                   Effective  July 1, 2000;  amended  October 1,
                                   2003 (adding open-end lines of credit)
---------------------------------------------------------------------------------------------------------------------
South Carolina                     South Carolina High Cost and Consumer Home          Consumer Home Loan
                                   Loans Act, S.C. Code Ann. ss.ss.
                                   37-23-10 et seq.
                                   Effective for loans taken on or after January
                                   1, 2004
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      B-6EXHIBIT 10.2

                   FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

      ASSIGNMENT  AND ASSUMPTION  AGREEMENT,  dated as of  [_____________  ___],
20[___],  between Residential Funding Company, LLC, a Delaware limited liability
company ("RFC") and Residential Funding Mortgage Securities II, Inc., a Delaware
corporation (the "Company").

                                    Recitals

      A. RFC has entered into seller  contracts  ("Seller  Contracts")  with the
seller/servicers.

      B. The Company  wishes to purchase  from RFC  certain  Mortgage  Loans (as
hereinafter  defined)  originated  pursuant to the Seller Contracts with respect
thereto.

      C. The Company, RFC, as master servicer, and [______________________],  as
trustee  and  supplemental   interest  trust  trustee  (the  "Trustee"  and  the
"Supplemental  Interest  Trust  Trustee,"  respectively),  are  entering  into a
Pooling and Servicing Agreement dated as of  [__________________] 1, 20[__] (the
"Pooling  and  Servicing  Agreement"),  pursuant to which the Trust  proposes to
issue Home  Equity  Loan  Pass-Through  Certificates,  Series  20[__]-[__]  (the
"Certificates") consisting of [seventeen] classes designated as Class A-1, Class
A-2, Class A-3, Class A-4, Class M-1S,  Class M-2S, Class M-3S, Class M-4, Class
M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class B, Class SB and Class R-I
and Class R-II Certificates  representing  beneficial  ownership  interests in a
trust fund  consisting  primarily  of a pool of  mortgage  loans  identified  in
Exhibit G to the Pooling and Servicing Agreement (the "Mortgage Loans").

      D. In connection with the purchase of the Mortgage Loans, the Company will
assign to or at the  direction of RFC the Class R-I and Class R-II  Certificates
(collectively, the "Retained Certificates").

      E. In connection  with the purchase of the Mortgage Loans and the issuance
of the Certificates,  RFC wishes to make certain  representations and warranties
to the Company.

      F. The Company and RFC intend that the conveyance by RFC to the Company of
all its right,  title and interest in and to the Mortgage Loans pursuant to this
Agreement shall constitute a purchase and sale and not a loan.

      NOW THEREFORE,  in  consideration  of the recitals and the mutual promises
herein and other good and valuable consideration, the parties agree as follows:

      1. All  capitalized  terms  used but not  defined  herein  shall  have the
meanings assigned thereto in the Pooling and Servicing Agreement.

      2. Concurrently with the execution and delivery hereof, RFC hereby assigns
to the Company without  recourse all of its right,  title and interest in and to
the Mortgage  Loans,  including all interest and  principal  received on or with
respect to the  Mortgage  Loans after the Cut-off  Date (other than  payments of
principal and interest due on the Mortgage Loans in [____________]  20[__]).  In
consideration  of such  assignment,  RFC  will  receive  from  the  Company,  in
immediately available funds, an amount equal to $[___________] and the Retained

<PAGE>

Certificates. In connection with such assignment and at the Company's direction,
RFC has in respect of each  Mortgage  Loan  endorsed the related  Mortgage  Note
(other  than any  Destroyed  Mortgage  Note) to the  order  of the  Trustee  and
delivered an  assignment  of mortgage in  recordable  form to the Trustee or its
agent. A Destroyed Mortgage Note means a Mortgage Note the original of which was
permanently lost or destroyed.

      The Company and RFC intend  that the  conveyance  by RFC to the Company of
all its right,  title and interest in and to the Mortgage Loans pursuant to this
Section 2 shall be, and shall be construed  as, a sale of the Mortgage  Loans by
RFC to the Company. It is, further,  not intended that such conveyance be deemed
to be a pledge of the  Mortgage  Loans by RFC to the Company to secure a debt or
other obligation of RFC. However,  in the event that the Mortgage Loans are held
to be property of RFC, or if for any reason this  Agreement is held or deemed to
create a security  interest in the Mortgage Loans,  then it is intended that (a)
this  Agreement  shall  also be deemed to be a  security  agreement  within  the
meaning of Articles 8 and 9 of the  Minnesota  Uniform  Commercial  Code and the
Uniform Commercial Code of any other applicable jurisdiction; (b) the conveyance
provided for in this Section shall be deemed to be a grant by RFC to the Company
of a security  interest  in all of RFC's  right  (including  the power to convey
title thereto), title and interest,  whether now owned or hereafter acquired, in
and to (A) the Mortgage  Loans,  including (i) with respect to each  Cooperative
Loan, the related Mortgage Note, Security  Agreement,  Assignment of Proprietary
Lease, Cooperative Stock Certificate,  Cooperative Lease, any insurance policies
and all other  documents in the related  Mortgage  File and (ii) with respect to
each  Mortgage  Loan other than a  Cooperative  Loan,  the Mortgage  Notes,  the
Mortgages, any related insurance policies and all other documents in the related
Mortgage  Files,  (B) all  amounts  payable  pursuant to the  Mortgage  Loans in
accordance  with the  terms  thereof  and (C) any and all  general  intangibles,
payment intangibles,  accounts,  chattel paper, instruments,  documents,  money,
deposit accounts,  certificates of deposit, goods, letters of credit, advices of
credit  and  investment   property  and  other  property  of  whatever  kind  or
description  now existing or hereafter  acquired  consisting of, arising from or
relating to any of the foregoing, and all proceeds of the conversion,  voluntary
or  involuntary,  of the foregoing into cash,  instruments,  securities or other
property,  including,  without limitation, all amounts from time to time held or
invested in the  Certificate  Account or the Custodial  Account,  whether in the
form of cash,  instruments,  securities or other property; (c) the possession by
the Trustee,  the Custodian or any other agent of the Trustee of Mortgage  Notes
or such other items of property as  constitute  instruments,  money,  negotiable
documents  or chattel  paper  shall be deemed to be  "possession  by the secured
party", or possession by a purchaser or a person designated by him, for purposes
of perfecting the security interest pursuant to the Minnesota Uniform Commercial
Code  and the  Uniform  Commercial  Code of any  other  applicable  jurisdiction
(including,  without limitation, Section 9-305, 8-313 or 8-321 thereof); and (d)
notifications to persons holding such property, and acknowledgments, receipts or
confirmations from persons holding such property,  shall be deemed notifications
to,   or   acknowledgments,    receipts   or   confirmations   from,   financial
intermediaries, bailees or agents (as applicable) of the Trustee for the purpose
of perfecting  such security  interest under  applicable  law. RFC shall, to the
extent  consistent with this Agreement,  take such reasonable  actions as may be
necessary to ensure  that,  if this  Agreement  were deemed to create a security
interest in the Mortgage  Loans and the other  property  described  above,  such
security  interest would be deemed to be a perfected  security interest of first
priority under applicable law and will be maintained as such throughout the term
of this Agreement.  Without limiting the generality of the foregoing,  RFC shall
prepare and deliver to the Company no less

                                       2
<PAGE>

than 15 days prior to any filing  date,  and the Company  shall  file,  or shall
cause to be filed, at the expense of RFC, all filings  necessary to maintain the
effectiveness  of any original  filings  necessary under the Uniform  Commercial
Code as in effect in any jurisdiction to perfect the Company's security interest
in or lien on the Mortgage Loans including  without  limitation (x) continuation
statements and (y) such other  statements as may be occasioned by (1) any change
of name of RFC or the  Company,  (2) any  change  of  location  of the  state of
formation,  place of business or the chief  executive  office of RFC, or (3) any
transfer of any interest of RFC in any Mortgage Loan.

      3. Concurrently with the execution and delivery hereof, the Company hereby
assigns to or at the direction of RFC without  recourse all of its right,  title
and interest in and to the Retained  Certificates  as part of the  consideration
payable to RFC by the Company pursuant to this Agreement.

      4. RFC  represents  and  warrants  to the  Company,  with  respect to each
Mortgage Loan that on the date of execution  hereof (or, if otherwise  specified
below, as of the date so specified),

            (a) The information set forth in the Mortgage Loan Schedule for such
      Mortgage Loans is true and correct in all material respects as of the date
      or dates respecting which such information is furnished;

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

            (c) Immediately prior to the conveyance of the Mortgage Loans to the
      Trustee,  RFC had good title to, and was the sole owner of, each  Mortgage
      Loan free and clear of any pledge, lien,  encumbrance or security interest
      (other  than  rights  to  servicing  and  related  compensation)  and such
      conveyance  validly  transfers  ownership  of the  Mortgage  Loans  to the
      Trustee  free and  clear of any  pledge,  lien,  encumbrance  or  security
      interest;

            (d) Each  Mortgage  Note  constitutes  a legal,  valid  and  binding
      obligation  of the  Mortgagor  enforceable  in  accordance  with its terms
      except  as  limited  by  bankruptcy,  insolvency  or  other  similar  laws
      affecting generally the enforcement of creditors' rights;

            (e) To the best of  RFC's  knowledge  as of the  Cut-off  Date,  and
      except as noted in (h) below,  there is no default,  breach,  violation or
      event of  acceleration  existing  under the terms of any Mortgage  Note or
      Mortgage and no event which,  with notice and  expiration  of any grace or
      cure period,  would  constitute a default,  breach,  violation or event of
      acceleration under the terms of any Mortgage Note or Mortgage, and no such
      default, breach, violation or event of acceleration has been waived by RFC
      or by any other entity involved in servicing a Mortgage Loan;

            (f) [Reserved];

            (g) The related Mortgagor is not currently in bankruptcy proceedings
      with respect to any of the Mortgage Loans;

                                       3
<PAGE>

            (h) As of the Cut-Off Date,  none of the Mortgage Loans are 30 to 59
      days  delinquent  in payment of  principal  and  interest  and none of the
      Mortgage Loans are 60 or more days  Delinquent in payment of principal and
      interest;

            (i) None of the Mortgage Loans are Buy-Down Mortgage Loans;

            (j) To the best of RFC's  knowledge,  there is no delinquent  tax or
      assessment lien against any related Mortgaged Property;

            (k)  No  Mortgagor  has  any  valid  right  of  offset,  defense  or
      counterclaim as to the related Mortgage Note or Mortgage, except as may be
      provided under the Servicemembers Civil Relief Act;

            (l) No  Mortgage  Loan  provides  for  payments  that are subject to
      reduction by withholding taxes levied by any foreign  (non-United  States)
      sovereign government;

            (m) (1) The proceeds of each Mortgage Loan have been fully disbursed
      and (2) to the best of RFC's knowledge, there is no requirement for future
      advances  thereunder and any and all  requirements as to completion of any
      on-site or off-site  improvements  and as to  disbursements  of any escrow
      funds therefor  (including any escrow funds held to make Monthly  Payments
      pending  completion of such  improvements)  have been complied  with.  All
      costs,  fees and expenses  incurred in making,  closing or  recording  the
      Mortgage Loans were paid;

            (n) To the best of RFC's  knowledge,  with respect to each  Mortgage
      Loan,  there are no mechanics' liens or claims for work, labor or material
      affecting any Mortgaged  Property  which are or may be a lien prior to, or
      equal with, the lien of the related  Mortgage,  except such liens that are
      insured or indemnified against by a title insurance policy;

            (o) With respect to each Mortgage Loan, a policy of title  insurance
      was  effective  as of the  closing  of each  Mortgage  Loan,  is valid and
      binding,  and  remains in full  force and  effect,  unless  the  Mortgaged
      Properties are located in the State of Iowa and an attorney's  certificate
      has been provided;

            (p) Each Mortgaged Property is free of damage and in good repair and
      no notice of  condemnation  has been given with  respect  thereto  and RFC
      knows of nothing involving any Mortgaged Property that could reasonably be
      expected to materially  adversely affect the value or marketability of any
      Mortgaged Property;

            (q) Each  Mortgage  contains  customary and  enforceable  provisions
      which render the rights and remedies of the holder adequate to realize the
      benefits of the security against the Mortgaged Property,  including (i) in
      the case of a Mortgage that is a deed of trust, by trustee's sale, or (ii)
      by judicial foreclosure or, if applicable,  non judicial foreclosure,  and
      to the best of RFC's  knowledge,  there is no homestead or other exemption
      available to the Mortgagor that would interfere with such right to sell at
      a  trustee's  sale or  right  to  foreclosure,  subject  in  each  case to
      applicable federal and state laws and judicial  precedents with respect to
      bankruptcy and right of redemption;

                                       4
<PAGE>

            (r) To the best of RFC's  knowledge,  with respect to each  Mortgage
      that is a deed of trust, a trustee duly qualified under  applicable law to
      serve as such is properly  named,  designated  and serving,  and except in
      connection with a trustee's sale after default by a Mortgagor,  no fees or
      expenses  are  payable  by the  seller  or RFC to the  trustee  under  any
      Mortgage that is a deed of trust;

            (s) If the  improvements  securing a Mortgage  Loan are located in a
      federal  designated  special  flood  hazard area,  flood  insurance in the
      amount  required  under the Program Guide covers such  Mortgaged  Property
      (either  by  coverage  under the  federal  flood  insurance  program or by
      coverage from private insurers);

            (t) To the  extent an  appraisal  was made on a Mortgage  Loan,  the
      appraisal  was made by an appraiser  who meets the minimum  qualifications
      for appraisers as specified in the Program Guide;

            (u) Each  Mortgage  Loan is covered by a standard  hazard  insurance
      policy;

            (v)  If any  of  the  Mortgage  Loans  are  secured  by a  leasehold
      interest,  with respect to each leasehold  interest:  the use of leasehold
      estates for  residential  properties  is an accepted  practice in the area
      where the related Mortgaged Property is located;  residential  property in
      such area consisting of leasehold estates is readily marketable; the lease
      is recorded and no party is in any way in breach of any  provision of such
      lease; the leasehold is in full force and effect and is not subject to any
      prior lien or  encumbrance  by which the leasehold  could be terminated or
      subject to any charge or penalty  (other  than with  respect to any junior
      lien  Mortgage  Loans);  and the  remaining  term of the  lease  does  not
      terminate  less than ten years after the  maturity  date of such  Mortgage
      Loan;

            (w)  To  the  best  of  RFC's  knowledge,  any  escrow  arrangements
      established  with respect to any Mortgage Loan are in compliance  with all
      applicable  local,  state and federal laws and are in compliance  with the
      terms of the related Mortgage Note;

            (x) None of the Mortgage  Loans in the mortgage pool are loans that,
      under  applicable  state or local law in effect at the time of origination
      of the loan, are referred to as (1)  "high-cost" or "covered" loans or (2)
      any other similar  designation if the law imposes greater  restrictions or
      additional  legal  liability  for  residential  mortgage  loans  with high
      interest rates, points and/or fees;

            (y) With  respect to each  Mortgage  Loan,  no  borrower  obtained a
      prepaid single-premium credit-life, credit disability, credit unemployment
      or credit property  insurance policy in connection with the origination of
      the Mortgage Loan;

            (z) None of the Mortgage  Loans contain  prepayment  penalties  that
      extend beyond three years after the date of origination;

            (aa) None of the  Mortgage  Loans are  subject to the  Homeownership
      Act;

                                       5
<PAGE>

            (bb)  Each  Mortgage  Loan at the time it was made  complied  in all
      material  respects  with  applicable  local,   state,  and  federal  laws,
      including, but not limited to, all applicable anti-predatory lending laws;

            (cc) No  Mortgage  Loan is a High  Cost  Loan or  Covered  Loan,  as
      applicable  (as such  terms are  defined in  Appendix E of the  Standard &
      Poor's  Glossary  For File  Format  For  LEVELS(R)  Version  5.6c  Revised
      (attached hereto as Exhibit 1);

            (dd) No Mortgage Loan was originated on or after October 1, 2002 and
      before March 7, 2003, which is secured by property located in the State of
      Georgia; and

            (ee) Each  Mortgage  Loan is secured by Mortgaged  Property  located
      within the United States.

      Upon  discovery by RFC or upon notice from the Company or the Trustee of a
breach  of the  foregoing  representations  and  warranties  in  respect  of any
Mortgage  Loan,  or upon the  occurrence  of a Repurchase  Event as described in
Section 5 below,  which  materially  and adversely  affects the interests of any
holders of the  Certificates  or the Company in such  Mortgage  Loan  (notice of
which  shall be given to the  Company by RFC,  if it  discovers  the same),  RFC
shall,  within 90 days after the earlier of its discovery  thereof,  either cure
such breach or Repurchase Event in all material respects or, except as otherwise
provided  in Section  2.04 of the Pooling and  Servicing  Agreement,  either (i)
purchase such Mortgage Loan from the Trustee or the Company, as the case may be,
at a price equal to the Purchase Price for such Mortgage Loan or (ii) substitute
a Qualified  Substitute  Mortgage  Loan or Loans for such  Mortgage  Loan in the
manner and subject to the  limitations  set forth in Section 2.04 of the Pooling
and Servicing Agreement.  If the breach of representation and warranty that gave
rise to the  obligation  to repurchase or substitute a Mortgage Loan pursuant to
this Section 4 was the  representation  and warranty set forth in clause (bb) of
this Section 4, then RFC shall pay to the Trust Fund,  concurrently  with and in
addition to the remedies provided in the preceding sentence,  an amount equal to
any liability,  penalty or expense that was actually incurred and paid out of or
on behalf of the Trust Fund, and that directly  resulted from such breach, or if
incurred and paid by the Trust Fund thereafter, concurrently with such payment.

      5. With respect to each  Mortgage  Loan, a repurchase  event  ("Repurchase
Event")  shall have occurred if one or both of the  following  occur:  (A) it is
discovered  that,  as of the date hereof,  the related  Mortgage was not a valid
first lien (or second lien,  with respect to junior lien Mortgage  Loans) on the
related  Mortgaged  Property subject only to (i) the lien of real property taxes
and  assessments  not yet due  and  payable,  (ii)  covenants,  conditions,  and
restrictions,  rights of way, easements and other matters of public record as of
the  date of  recording  of such  Mortgage  and  such  other  permissible  title
exceptions as are listed in the Program Guide, (iii) other matters to which like
properties  are commonly  subject which do not materially  adversely  affect the
value, use,  enjoyment or marketability of the Mortgaged  Property and (iv) with
respect to junior lien Mortgage  Loans,  the senior mortgage loan thereon or (B)
it is discovered  that, as of the time of its  origination and as of the date of
execution hereof, the Mortgage Loan did not comply in all material respects with
all applicable local,  state and federal laws. In addition,  with respect to any
Mortgage  Loan  listed on the  attached  Schedule  A with  respect  to which any
document or documents constituting a part of the Mortgage File are missing

                                       6
<PAGE>

or defective in any material  respect,  if such Mortgage Loan subsequently is in
default and the enforcement thereof or of the related Mortgage is materially and
adversely  affected  by the  absence or  defectiveness  of any such  document or
documents,  a Repurchase  Event shall be deemed to have occurred and RFC will be
obligated to repurchase  or substitute  for such Mortgage Loan in the manner set
forth in Section 4 above.

      6. This  Agreement  shall inure to the benefit of and be binding  upon the
parties hereto and their respective  successors and assigns, and no other person
shall have any right or obligation hereunder.

      7. RFC, as master servicer under the Pooling and Servicing  Agreement (the
"Master  Servicer"),  shall not waive (or  permit a  sub-servicer  to waive) any
Prepayment Charge unless: (i) the enforceability thereof shall have been limited
by  bankruptcy,  insolvency,  moratorium,  receivership  and other  similar laws
relating  to  creditors'  rights  generally,  (ii) the  enforcement  thereof  is
illegal,  or any local,  state or federal agency has threatened  legal action if
the prepayment penalty is enforced,  (iii) the collectability thereof shall have
been limited due to  acceleration  in  connection  with a  foreclosure  or other
involuntary  payment or (iv) such waiver is standard and  customary in servicing
similar  Mortgage  Loans and  relates to a default or a  reasonably  foreseeable
default and would, in the reasonable  judgment of the Master Servicer,  maximize
recovery  of total  proceeds  taking into  account the value of such  Prepayment
Charge and the related Mortgage Loan. In no event will the Master 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 a Prepayment
Charge is waived,  but does not meet the  standards  described  above,  then the
Master Servicer is required to pay the amount of such waived  Prepayment  Charge
to the holder of the Class SB  Certificates  at the time that the amount prepaid
on the related  Mortgage  Loan is required to be  deposited  into the  Custodial
Account.  Notwithstanding  any other provisions of this Agreement,  any payments
made by the Master Servicer in respect of any waived Prepayment Charges pursuant
to this  Section  shall be deemed to be paid  outside  of the Trust Fund and not
part of any REMIC.

      8. This Agreement will be governed by and construed in accordance with the
laws of the State of New York,  without regard to the conflict of law principles
thereof,  other  than  Sections  5-1401  and  5-1402  of the  New  York  General
Obligations Law.

                      [SIGNATURES BEGIN ON FOLLOWING PAGE]

                                       7
<PAGE>

      IN WITNESS  WHEREOF,  the parties have entered  into this  Assignment  and
Assumption Agreement as of the date first above written.

                                              RESIDENTIAL FUNDING COMPANY, LLC
                                              By:  ____________________
                                              Name:
                                              Title:

                                              RESIDENTIAL FUNDING MORTGAGE
                                              SECURITIES II, INC.
                                              By:  ____________________
                                              Name:
                                              Title:

<PAGE>

                                   SCHEDULE A

            Schedule of Mortgage Loans with Defective Mortgage Files

                                 (see attached)

                                      A-1
<PAGE>

                                    EXHIBIT 1

                                                           REVISED July 11, 2005

APPENDIX E - Standard & Poor's Predatory Lending Categories

Standard & Poor's has categorized loans governed by anti-predatory lending laws
in the Jurisdictions listed below into three categories based upon a combination
of factors that include (a) the risk exposure associated with the assignee
liability and (b) the tests and thresholds set forth in those laws. Note that
certain loans classified by the relevant statute as Covered are included in
Standard & Poor's High Cost Loan Category because they included thresholds and
tests that are typical of what is generally considered High Cost by the
industry.

Standard & Poor's High Cost Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable
                                                         Date                          Anti-Predatory Lending Law
---------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                          <C>
Arkansas                           Arkansas Home Loan Protection Act, Ark. Code        High Cost Home Loan
                                   Ann. ss.ss. 23-53-101 et seq.

                                   Effective July 16, 2003
---------------------------------------------------------------------------------------------------------------------
Cleveland Heights, OH              Ordinance No. 72-2003 (PSH),                        Covered Loan
                                   Mun. Code ss.ss. 757.01 et seq.

                                   Effective June 2, 2003
---------------------------------------------------------------------------------------------------------------------
Colorado                           Consumer Equity Protection, Colo. Stat.             Covered Loan
                                   Ann. ss.ss. 5-3.5-101 et seq.

                                   Effective for covered loans offered or entered
                                   into on or after January 1, 2003. Other
                                   provisions of the Act took effect on June 7,
                                   2002
---------------------------------------------------------------------------------------------------------------------
Connecticut                        Connecticut Abusive Home Loan Lending Practices     High Cost Home Loan
                                   Act, Conn. Gen. Stat. ss.ss. 36a-746 et seq.

                                   Effective October 1, 2001
---------------------------------------------------------------------------------------------------------------------
District of Columbia               Home Loan Protection Act, D.C. Code ss.ss.          Covered Loan
                                   26-1151.01 et seq.

                                   Effective for loans closed on or after January
                                   28, 2003
---------------------------------------------------------------------------------------------------------------------
Florida                            Fair Lending Act, Fla. Stat. Ann. ss.ss. 494.0078   High Cost Home Loan
                                   et seq.

                                   Effective October 2, 2002
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                  Exhibit 1-1
<PAGE>

Standard & Poor's High Cost Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable
                                                         Date                          Anti-Predatory Lending Law
---------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                          <C>
Georgia (Oct. 1, 2002 - Mar. 6,    Georgia Fair Lending Act, Ga. Code Ann. ss.ss.      High Cost Home Loan
2003)                              7-6A-1 et seq.

                                   Effective October 1, 2002 - March 6, 2003
---------------------------------------------------------------------------------------------------------------------
Georgia as amended (Mar. 7, 2003   Georgia Fair Lending Act, Ga. Code Ann. ss.ss.      High Cost Home Loan
- current)                         7-6A-1 et seq.

                                   Effective for loans closed on or after March 7,
                                   2003
---------------------------------------------------------------------------------------------------------------------
HOEPA Section 32                   Home Ownership and Equity Protection Act of         High Cost Loan
                                   1994, 15 U.S.C. ss. 1639, 12 C.F.R.
                                   ss.ss. 226.32 and 226.34

                                   Effective October 1, 1995,
                                   amendments October 1, 2002
---------------------------------------------------------------------------------------------------------------------
Illinois                           High Risk Home Loan Act, Ill. Comp. Stat. tit.      High Risk Home Loan
                                   815, ss.ss. 137/5 et seq.

                                   Effective  January  1,  2004  (prior  to this
                                   date,  regulations under Residential Mortgage
                                   License Act effective from May 14, 2001)
---------------------------------------------------------------------------------------------------------------------
Kansas                             Consumer Credit Code, Kan. Stat. Ann. ss.ss.        High Loan to Value Consumer
                                   16a-1-101 et seq.                                   Loan (id. ss. 16a-3-207) and;
                                                                                -------------------------------------
                                   Sections 16a-1-301 and 16a-3-207 became             High APR Consumer Loan (id.
                                   effective April 14, 1999; Section 16a-3-308a        ss. 16a-3-308a)
                                   became effective July 1, 1999
---------------------------------------------------------------------------------------------------------------------
Kentucky                           2003 KY H.B. 287 - High Cost Home Loan Act, Ky.     High Cost Home Loan
                                   Rev. Stat. ss.ss. 360.100 et seq.

                                   Effective June 24, 2003
---------------------------------------------------------------------------------------------------------------------
Maine                              Truth in Lending, Me. Rev. Stat. tit. 9-A, ss.ss.   High Rate High Fee Mortgage
                                   8-101 et seq.

                                   Effective September 29, 1995 and
                                   as amended from time to time
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                  Exhibit 1-2
<PAGE>

Standard & Poor's High Cost Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable
                                                         Date                          Anti-Predatory Lending Law
---------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                          <C>
Massachusetts                      Part 40 and Part 32,                                High Cost Home Loan
                                   209 C.M.R. ss.ss. 32.00 et seq. and
                                   209 C.M.R. ss.ss. 40.01 et seq.

                                   Effective March 22, 2001 and
                                   amended from time to time
---------------------------------------------------------------------------------------------------------------------
Nevada                             Assembly Bill No. 284, Nev. Rev. Stat. ss.ss.       Home Loan
                                   598D.010 et seq.

                                   Effective October 1, 2003
---------------------------------------------------------------------------------------------------------------------
New Jersey                         New Jersey Home Ownership Security Act of 2002,     High Cost Home Loan
                                   N.J. Rev. Stat. ss.ss. 46:10B-22 et seq.

                                   Effective for loans closed on or after November
                                   27, 2003
---------------------------------------------------------------------------------------------------------------------
New Mexico                         Home Loan Protection Act, N.M. Rev. Stat. ss.ss.    High Cost Home Loan
                                   58-21A-1 et seq.

                                   Effective as of January 1, 2004;
                                   Revised as of February 26, 2004
---------------------------------------------------------------------------------------------------------------------
New York                           N.Y. Banking Law Article 6-l                        High Cost Home Loan

                                   Effective for applications made on or after
                                   April 1, 2003
---------------------------------------------------------------------------------------------------------------------
North Carolina                     Restrictions and Limitations on High Cost Home      High Cost Home Loan
                                   Loans, N.C. Gen. Stat. ss.ss. 24-1.1E et seq.

                                   Effective  July 1, 2000;  amended  October 1,
                                   2003 (adding open-end lines of credit)
---------------------------------------------------------------------------------------------------------------------
Ohio                               H.B. 386 (codified in various sections of the       Covered Loan
                                   Ohio Code), Ohio Rev. Code Ann. ss.ss.
                                   1349.25 et seq.

                                   Effective May 24, 2002
---------------------------------------------------------------------------------------------------------------------
Oklahoma                           Consumer Credit Code (codified in various           Subsection 10 Mortgage
                                   sections of Title 14A)

                                   Effective July 1, 2000;
                                   amended effective January 1, 2004
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                  Exhibit 1-3
<PAGE>

Standard & Poor's High Cost Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable
                                                         Date                          Anti-Predatory Lending Law
---------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                          <C>
South Carolina                     South Carolina High Cost and Consumer Home          High Cost Home Loan
                                   Loans Act, S.C. Code Ann. ss.ss.
                                   37-23-10 et seq.

                                   Effective for loans taken on or after January
                                   1, 2004
---------------------------------------------------------------------------------------------------------------------
West Virginia                      West Virginia Residential Mortgage Lender,          West Virginia Mortgage Loan
                                   Broker and Servicer Act, W. Va. Code Ann. ss.ss.    Act Loan
                                   31-17-1 et seq.

                                   Effective June 5, 2002
---------------------------------------------------------------------------------------------------------------------
</TABLE>

Standard & Poor's Covered Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable
                                                         Date                          Anti-Predatory Lending Law
---------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                          <C>
Georgia (Oct. 1, 2002 - Mar. 6,    Georgia Fair Lending Act, Ga. Code Ann. ss.ss.      Covered Loan
2003)                              7-6A-1 et seq.

                                   Effective October 1, 2002 - March 6, 2003
---------------------------------------------------------------------------------------------------------------------
New Jersey                         New Jersey Home Ownership Security Act of 2002,     Covered Home Loan
                                   N.J. Rev. Stat. ss.ss. 46:10B-22 et seq.

                                   Effective November 27, 2003 - July 5, 2004
---------------------------------------------------------------------------------------------------------------------
</TABLE>

Standard & Poor's Home Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable
                                                         Date                          Anti-Predatory Lending Law
---------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                          <C>
Georgia (Oct. 1, 2002 - Mar. 6,    Georgia Fair Lending Act, Ga. Code Ann. ss.ss.      Home Loan
2003)                              7-6A-1 et seq.

                                   Effective October 1, 2002 - March 6, 2003
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                  Exhibit 1-4
<PAGE>

Standard & Poor's Home Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable
                                                         Date                          Anti-Predatory Lending Law
---------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                          <C>
New Jersey                         New Jersey Home Ownership Security Act of 2002,     Home Loan
                                   N.J. Rev. Stat. ss.ss. 46:10B-22 et seq.

                                   Effective for loans closed on or after November
                                   27, 2003
---------------------------------------------------------------------------------------------------------------------
New Mexico                         Home Loan Protection Act, N.M. Rev. Stat. ss.ss.    Home Loan
                                   58-21A-1 et seq.

                                   Effective as of January 1, 2004; Revised as of
                                   February 26, 2004
---------------------------------------------------------------------------------------------------------------------
North Carolina                     Restrictions and Limitations on High Cost Home      Consumer Home Loan
                                   Loans, N.C. Gen. Stat. ss.ss. 24-1.1E et seq.

                                   Effective  July 1, 2000;  amended  October 1,
                                   2003 (adding open-end lines of credit)
---------------------------------------------------------------------------------------------------------------------
South Carolina                     South Carolina High Cost and Consumer Home          Consumer Home Loan
                                   Loans Act, S.C. Code Ann. ss.ss. 37-23-10 et seq.

                                   Effective for loans taken on or after January
                                   1, 2004
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                  Exhibit 1-5

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