Document:

NEWCASTLE MORTGAGE SECURITIES TRUST 2007-1

                                                  Issuing Entity

                                              WELLS FARGO BANK, N.A.

                                             Securities Administrator

                                                        and

                                               THE BANK OF NEW YORK

                                                 Indenture Trustee

                                           _____________________________

                                                     INDENTURE

                                             Dated as of July 12, 2007

                                           _____________________________

                                         ASSET-BACKED NOTES, SERIES 2007-1

                                                 ________________

                                                 TABLE OF CONTENTS

Section                                                                                                        Page
                                                     ARTICLE I

                                                    DEFINITIONS

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

Section 1.02.        Incorporation by Reference of Trust Indenture Act............................................2

Section 1.03.        Rules of Construction........................................................................2

                                                    ARTICLE II

                                          ORIGINAL ISSUANCE OF THE NOTES

Section 2.01.        Form.........................................................................................4

Section 2.02.        Execution, Authentication and Delivery.......................................................4

Section 2.03.        Authorization to Enter into the Interest Rate Cap Agreement and the Interest Rate Swap
                     Agreement....................................................................................5

                                                    ARTICLE III

                                                     COVENANTS

Section 3.01.        Collection of Payments with respect to the Mortgage Loans....................................6

Section 3.02.        Maintenance of Office or Agency..............................................................6

Section 3.03.        Money for Payments To Be Held in Trust; Paying Agent.........................................6

Section 3.04.        Existence....................................................................................7

Section 3.05.        Payment of Principal and Interest............................................................8

Section 3.06.        Protection of Trust Estate..................................................................14

Section 3.07.        Opinions as to Trust Estate.................................................................15

Section 3.08.        Performance of Obligations..................................................................16

Section 3.09.        Negative Covenants..........................................................................16

Section 3.10.        [Reserved]..................................................................................17

Section 3.11.        [Reserved.].................................................................................17

Section 3.12.        Representations and Warranties Concerning the Mortgage Loans................................17

Section 3.13.        Amendments to Sale and Servicing Agreement..................................................17

Section 3.14.        Servicer as Agent and Bailee of the Indenture Trustee.......................................17

Section 3.15.        Investment Company Act......................................................................18

Section 3.16.        Issuing Entity May Consolidate, etc.........................................................18

Section 3.17.        Successor or Transferee.....................................................................19

Section 3.18.        No Other Business...........................................................................19

Section 3.19.        No Borrowing................................................................................19

Section 3.20.        Guarantees, Loans, Advances and Other Liabilities...........................................19

Section 3.21.        Capital Expenditures........................................................................20

Section 3.22.        Determination of Note Rate..................................................................20

Section 3.23.        Restricted Payments.........................................................................20

Section 3.24.        Notice of Events of Default.................................................................20

Section 3.25.        Further Instruments and Acts................................................................20

Section 3.26.        Statements to Noteholders...................................................................21

Section 3.27.        [Reserved]..................................................................................21

Section 3.28.        Certain Representations Regarding the Trust Estate..........................................21

Section 3.29.        Allocation of Realized Losses...............................................................22

                                                    ARTICLE IV

                                THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

Section 4.01.        The Notes...................................................................................24

Section 4.02.        Registration of and Limitations on Transfer and Exchange of Notes; Appointment of Note
                     Registrar and Certificate Registrar.........................................................24

Section 4.03.        Mutilated, Destroyed, Lost or Stolen Notes..................................................25

Section 4.04.        Persons Deemed Owners.......................................................................26

Section 4.05.        Cancellation................................................................................26

Section 4.06.        Book-Entry Notes............................................................................27

Section 4.07.        Notices to Depository.......................................................................28

Section 4.08.        Definitive Notes............................................................................28

Section 4.09.        Tax Treatment...............................................................................28

Section 4.10.        Satisfaction and Discharge of Indenture.....................................................28

Section 4.11.        Application of Trust Money..................................................................29

Section 4.12.        [Reserved]..................................................................................30

Section 4.13.        Repayment of Monies Held by Paying Agent....................................................30

Section 4.14.        Temporary Notes.............................................................................30

Section 4.15.        Representation Regarding ERISA..............................................................30

                                                     ARTICLE V

                                               DEFAULT AND REMEDIES

Section 5.01.        Events of Default...........................................................................32

Section 5.02.        Acceleration of Maturity; Rescission and Annulment..........................................32

Section 5.03.        Collection of Indebtedness and Suits for Enforcement by Indenture Trustee...................33

Section 5.04.        Remedies; Priorities........................................................................35

Section 5.05.        Optional Preservation of the Trust Estate...................................................38

Section 5.06.        Limitation of Suits.........................................................................38

Section 5.07.        Unconditional Rights of Noteholders To Receive Principal and Interest.......................39

Section 5.08.        Restoration of Rights and Remedies..........................................................39

Section 5.09.        Rights and Remedies Cumulative..............................................................39

Section 5.10.        Delay or Omission Not a Waiver..............................................................39

Section 5.11.        Control By Noteholders......................................................................39

Section 5.12.        Waiver of Past Defaults.....................................................................40

Section 5.13.        Undertaking for Costs.......................................................................40

Section 5.14.        Waiver of Stay or Extension Laws............................................................41

Section 5.15.        Sale of Trust Estate........................................................................41

Section 5.16.        Action on Notes.............................................................................43

Section 5.17.        Performance and Enforcement of Certain Obligations..........................................43

                                                    ARTICLE VI

                              THE INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR

Section 6.01.        Duties of Indenture Trustee and Securities Administrator....................................45

Section 6.02.        Rights of Indenture Trustee and Securities Administrator....................................48

Section 6.03.        Individual Rights of Indenture Trustee and Securities Administrator.........................49

Section 6.04.        Indenture Trustee's and Securities Administrator's Disclaimer...............................49

Section 6.05.        Notice of Event of Default..................................................................50

Section 6.06.        Reports by the Securities Administrator to Holders and Tax Administration...................50

Section 6.07.        Compensation and Indemnity..................................................................50

Section 6.08.        Replacement of Indenture Trustee or Securities Administrator................................51

Section 6.09.        Successor Indenture Trustee or Securities Administrator by Merger...........................53

Section 6.10.        Appointment of Co-Indenture Trustee or Separate Indenture Trustee...........................53

Section 6.11.        Eligibility; Disqualification...............................................................54

Section 6.12.        Preferential Collection of Claims Against Issuing Entity....................................55

Section 6.13.        Representations and Warranties..............................................................55

Section 6.14.        Directions to Indenture Trustee and Securities Administrator................................55

Section 6.15.        The Agents..................................................................................55

                                                    ARTICLE VII

                                          NOTEHOLDERS' LISTS AND REPORTS

Section 7.01.        Issuing Entity To Furnish Securities Administrator Names and Addresses of Noteholders.......57

Section 7.02.        Preservation of Information; Communications to Noteholders..................................57

Section 7.03.        Reports of Issuing Entity...................................................................57

Section 7.04.        Reports by Securities Administrator.........................................................59

Section 7.05.        Statements to Noteholders...................................................................59

                                                   ARTICLE VIII

                                       ACCOUNTS, DISBURSEMENTS AND RELEASES

Section 8.01.        Collection of Money.........................................................................63

Section 8.02.        Trust Accounts..............................................................................63

Section 8.03.        Officer's Certificate.......................................................................63

Section 8.04.        Termination Upon Payment to Noteholders.....................................................63

Section 8.05.        Release of Trust Estate.....................................................................64

Section 8.06.        Surrender of Notes Upon Final Payment.......................................................64

Section 8.07.        Optional Redemption of the Notes............................................................64

Section 8.08.        Collateral Account..........................................................................66

                                                    ARTICLE IX

                                              SUPPLEMENTAL INDENTURES

Section 9.01.        Supplemental Indentures Without Consent of Noteholders......................................68

Section 9.02.        Supplemental Indentures With Consent of Noteholders.........................................69

Section 9.03.        Execution of Supplemental Indentures........................................................71

Section 9.04.        Effect of Supplemental Indenture............................................................71

Section 9.05.        Conformity with Trust Indenture Act.........................................................72

Section 9.06.        Reference in Notes to Supplemental Indentures...............................................72

                                                     ARTICLE X

                                                   MISCELLANEOUS

Section 10.01.       Compliance Certificates and Opinions, etc...................................................73

Section 10.02.       Form of Documents Delivered to Indenture Trustee............................................74

Section 10.03.       Acts of Noteholders.........................................................................75

Section 10.04.       Notices etc., to Indenture Trustee, Securities Administrator, Issuing Entity and Rating
                     Agencies....................................................................................76

Section 10.05.       Notices to Noteholders; Waiver..............................................................76

Section 10.06.       Conflict with Trust Indenture Act...........................................................77

Section 10.07.       Effect of Headings..........................................................................77

Section 10.08.       Successors and Assigns......................................................................77

Section 10.09.       Separability................................................................................77

Section 10.10.       Third Party Beneficiaries...................................................................77

Section 10.11.       Legal Holidays..............................................................................78

Section 10.12.       GOVERNING LAW...............................................................................78

Section 10.13.       Counterparts................................................................................78

Section 10.14.       Recording of Indenture......................................................................78

Section 10.15.       Issuing Entity Obligation...................................................................78

Section 10.16.       No Petition.................................................................................79

Section 10.17.       Inspection..................................................................................79

Section 10.18.       No Recourse to Owner Trustee................................................................79

Section 10.19.       Proofs of Claim.............................................................................80

EXHIBITS

Exhibit A-1                  Form of Class A Note
Exhibit A-2                  Form of Class M Note
Exhibit B                    Mortgage Loan Schedule
Exhibit C                    Interest Rate Swap Agreement
Exhibit D                    Interest Rate Cap Agreement

Appendix A                   Definitions

                  This Indenture,  dated as of July 12, 2007, is entered into among Newcastle  Mortgage  Securities
Trust 2007-1,  a Delaware  statutory  trust, as Issuing Entity (the "Issuing  Entity"),  Wells Fargo Bank,  N.A., a
national banking  association,  as Securities  Administrator (the "Securities  Administrator",  which term includes
any  successor  Securities  Administrator  under  the  Indenture")  and The Bank of New  York,  a New York  banking
corporation, as Indenture Trustee (the "Indenture Trustee").

                                                 WITNESSETH THAT:

                  Each party  hereto  agrees as follows  for the  benefit of the other  party and for the equal and
ratable benefit of the Holders of the Issuing Entity's Asset-Backed Notes, Series 2007-1 (the "Notes").

                                                  GRANTING CLAUSE

                  The Issuing  Entity hereby  Grants to the  Indenture  Trustee at the Closing Date, as trustee for
the benefit of the Holders of the Notes, all of the Issuing Entity's right,  title and interest,  whether now owned
or hereafter  acquired,  in, to and under (a) the  Mortgage  Loans,  Qualified  Substitute  Mortgage  Loans and the
proceeds  thereof;  (b) all funds on deposit from time to time in the Collection  Account allocable to the Mortgage
Loans  excluding  any  investment  income from such funds;  (c) all funds on deposit  from time to time in the Note
Account and in all proceeds thereof;  (d) all rights under (i) the Assignment  Agreement as assigned to the Issuing
Entity,  (ii) the Sale and  Servicing  Agreement,  (iii) any title,  hazard and  primary  insurance  policies  with
respect to the Mortgaged  Properties,  (iv) the rights with respect to the Interest Rate Swap Agreement and (v) the
rights with respect to the Interest Rate Cap  Agreement;  (e) all present and future  claims,  demands,  causes and
choses in action in respect of any or all of the  foregoing  and all  payments  on or under,  and all  proceeds  of
every kind and nature  whatsoever in respect of, any or all of the foregoing and all payments on or under,  and all
proceeds of every kind and nature  whatsoever in the conversion  thereof,  voluntary or  involuntary,  into cash or
other liquid property,  all cash proceeds,  accounts,  accounts  receivable,  notes, drafts,  acceptances,  checks,
deposit  accounts,  rights to  payment of any and every  kind,  and other  forms of  obligations  and  receivables,
instruments  and other property which at any time  constitute all or part of or are included in the proceeds of any
of the  foregoing  and (f) all other  property  of the  Issuing  Entity  (collectively,  the "Trust  Estate" or the
"Collateral").

                  The  foregoing  Grant is made in trust to secure the payment of principal of and interest on, and
any other amounts owing in respect of, the Notes,  equally and ratably without prejudice,  priority or distinction,
and to secure compliance with the provisions of this Indenture, all as provided in this Indenture.

                  The  Indenture  Trustee,  as trustee on behalf of the  Holders  of the Notes,  acknowledges  such
Grant,  accepts the trust under this Indenture in accordance  with the provisions  hereof and each of the Indenture
Trustee  and the  Securities  Administrator  agree to perform  their  respective  duties as  Indenture  Trustee and
Securities Administrator as required herein.

                                                     ARTICLE I

                                                    DEFINITIONS

                  Section 1.01.     Definitions.

                  For all purposes of this Indenture,  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  attached hereto as Appendix A which is incorporated by reference  herein.  All other
capitalized terms used herein shall have the meanings specified herein.

                  Section 1.02.     Incorporation by Reference of Trust Indenture Act.

                  Whenever  this  Indenture  refers to a provision  of the Trust  Indenture  Act (the  "TIA"),  the
provision is incorporated  by reference in and made a part of this Indenture.  The following TIA terms used in this
Indenture have the following meanings:

                  "Commission" means the Securities and Exchange Commission.

                  "Indenture Securities" means the Notes.

                  "Indenture Security Holder" means a Noteholder.

                  "Indenture to be Qualified" means this Indenture.

                  "Indenture Trustee" or "Institutional Trustee" means the Indenture Trustee.

                  "Obligor"  on the  indenture  securities  means the Issuing  Entity and any other  obligor on the
         indenture securities.

                  All  other  TIA  terms  used in this  Indenture  that  are  defined  by the TIA,  defined  by TIA
reference  to another  statute  or  defined by  Commission  rules and have the  meanings  assigned  to them by such
definitions.

                  Section 1.03.     Rules of Construction.

                  Unless the context otherwise requires:

                  (i)      a term has the meaning assigned to it;

                  (ii)     an accounting  term not otherwise  defined has the meaning  assigned to it in accordance
         with generally accepted accounting principles as in effect from time to time;

                  (iii)    "or" is not exclusive;

                  (iv)     "including" means including without limitation;

                  (v)      words  in the  singular  include  the  plural  and  words  in  the  plural  include  the
         singular;  and

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

                                                    ARTICLE II

                                          ORIGINAL ISSUANCE OF THE NOTES

                  Section 2.01.     Form.

                  The Notes, together with the Securities Administrator's  certificate of authentication,  shall be
in substantially the form set forth in Exhibits A-1 or A-2 to this Indenture,  respectively,  with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this Indenture.

                  The  Notes  shall  be  typewritten,   printed,  lithographed  or  engraved  or  produced  by  any
combination of these methods (with or without steel engraved borders).

                  The  terms of the  Notes  set forth in  Exhibits  A-1 and A-2 to this  Indenture  are part of the
terms of this  Indenture.  To the extent the Notes and the terms of the  Indenture are  inconsistent,  the terms of
the Indenture shall control.

                  Section 2.02.     Execution, Authentication and Delivery.

                  The Notes shall be executed on behalf of the Issuing  Entity by any of its  Authorized  Officers.
The signature of any such Authorized Officer on the Notes may be manual or facsimile.

                  Notes bearing the manual or facsimile  signature of individuals  who were at any time  Authorized
Officers of the Issuing  Entity shall bind the Issuing  Entity,  notwithstanding  that such  individuals  or any of
them have ceased to hold such offices prior to the  authentication  and delivery of such Notes or did not hold such
offices at the date of such Notes.

                  The  Securities  Administrator  shall upon Issuing Entity  Request  authenticate  and deliver the
Notes for original issue in an aggregate  initial  principal amount of  $1,036,250,000.  The Classes of Notes shall
have the following Initial Note Balances:

                                 Class              Initial Note Balance
                              ____________________________________________
                                 1-A-1             $       370,224,000
                                 2-A-1             $       285,332,000
                                 2-A-2             $        27,683,000
                                 2-A-3             $        77,257,000
                                 2-A-4             $        39,130,000
                                  M-1              $        42,429,000
                                  M-2              $        41,341,000
                                  M-3              $        25,022,000
                                  M-4              $        22,846,000
                                  M-5              $        21,215,000
                                  M-6              $        18,495,000
                                 M-7-A             $         5,000,000
                                 M-7-B             $        12,407,000
                                 M-8-A             $         3,500,000
                                 M-8-B             $        12,275,000
                                  M-9              $        14,143,000
                                  M-10             $        17,951,000

                  Each of the Notes  shall be dated the date of its  authentication.  The Notes  shall be  issuable
as  registered  Notes and the Notes  shall be  issuable  in the  minimum  initial  Note  Balances of $25,000 and in
integral  multiples  of $1 in  excess  thereof;  provided  that  the  Notes  must be  purchased  in  minimum  total
investments of $100,000 per class.

                  No Note shall be entitled to any benefit under this  Indenture or be valid or obligatory  for any
purpose,  unless there appears on such Note a certificate of authentication  substantially in the form provided for
herein executed by the Securities  Administrator by the manual signature of one of its authorized signatories,  and
such certificate upon any Note shall be conclusive  evidence,  and the only evidence,  that such Note has been duly
authenticated and delivered hereunder.

                  Section 2.03.     Authorization  to Enter into the Interest  Rate Cap Agreement and the Interest
                                    Rate Swap Agreement.

                  The  Securities  Administrator  is hereby  directed to perform the Issuing  Entity's  obligations
under the Interest Rate Cap Agreement  and the Interest  Rate Swap  Agreement,  exercise the rights and perform the
obligations  on behalf  of Party B (each as  defined  therein)  and not in its  individual  capacity.  The  Issuing
Entity  acknowledges  and  agrees  that  (i)  the  Securities  Administrator  shall  perform  the  Owner  Trustee's
obligations  under the Interest Rate Cap Agreement and the Interest Rate Swap  Agreement on behalf of Party B (each
as defined  therein) and (ii) the Securities  Administrator  shall exercise the rights and perform the  obligations
of Party B  thereunder,  solely in its capacity as Securities  Administrator  on behalf of Party B (each as defined
therein) and not in its individual capacity.

                  Every  provision of this Indenture  affording  protection to the Securities  Administrator  shall
apply to the  Securities  Administrator's  delivery of the Interest  Rate Cap  Agreement and the Interest Rate Swap
Agreement and the performance of its duties and satisfaction of its obligations thereunder.

                                                    ARTICLE III

                                                     COVENANTS

                  Section 3.01.     Collection of Payments with respect to the Mortgage Loans.

                  The Securities  Administrator  shall make all payments of principal of and interest on the Notes,
subject to Section 3.03 as provided in Section 3.05 herein from monies on deposit in the Note Account.

                  Section 3.02.     Maintenance of Office or Agency.

                  The  Issuing  Entity  will  maintain  an office or  agency  where,  subject  to  satisfaction  of
conditions set forth herein,  Notes may be surrendered for registration of transfer or exchange,  and where notices
and demands to or upon the Issuing  Entity in respect of the Notes and this  Indenture  may be served.  The Issuing
Entity hereby initially  appoints the Securities  Administrator  to serve as its agent for the foregoing  purposes.
If at any time the Issuing  Entity  shall fail to  maintain  any such office or agency or shall fail to furnish the
Indenture  Trustee  with  the  address  thereof,  such  surrenders  may be made  at the  office  designated  by the
Securities Administrator for such purpose.

                  Section 3.03.     Money for Payments To Be Held in Trust; Paying Agent.

                  As provided in Section  3.01,  all  payments of amounts due and payable with respect to any Notes
that are to be made from amounts  withdrawn from the Note Account  pursuant to Section 3.01 shall be made on behalf
of the Issuing  Entity by the  Securities  Administrator  or by the Paying Agent,  and no amounts so withdrawn from
the Note  Account  for  payments  of Notes  shall be paid over to the  Issuing  Entity  except as  provided in this
Section 3.03.  The Issuing Entity hereby appoints the Securities Administrator as its Paying Agent.

                  The   Securities   Administrator   will  cause  each  Paying  Agent  other  than  the  Securities
Administrator  to execute and deliver to the  Securities  Administrator  an  instrument  in which such Paying Agent
shall agree with the Securities  Administrator (and if the Securities  Administrator acts as Paying Agent it hereby
so agrees), subject to the provisions of this Section 3.03, that such Paying Agent will:

                           (i)      hold all sums held by it for the  payment  of amounts  due with  respect to the
                  Notes in trust for the benefit of the Persons  entitled  thereto until such sums shall be paid to
                  such  Persons or  otherwise  disposed of as herein  provided and pay such sums to such Persons as
                  herein provided;

                           (ii)     give the Securities  Administrator  notice of any default by the Issuing Entity
                  of which it has actual  knowledge  in the making of any payment  required to be made with respect
                  to the Notes;

                           (iii)    at any time  during  the  continuance  of any such  default,  upon the  written
                  request of the Securities  Administrator,  forthwith pay to the Securities Administrator all sums
                  so held in trust by such Paying Agent;

                           (iv)     immediately  resign  as  Paying  Agent  and  forthwith  pay to  the  Securities
                  Administrator  all sums held by it in trust for the  payment of Notes if at any time it ceases to
                  meet the standards required to be met by a Paying Agent at the time of its appointment;

                           (v)      comply with all  requirements of the Code with respect to the withholding  from
                  any payments made by it on any Notes of any  applicable  withholding  taxes  imposed  thereon and
                  with respect to any applicable reporting requirements in connection therewith; and

                           (vi)     not commence a bankruptcy  proceeding  against the Issuing Entity in connection
                  with this Indenture.

                  The Issuing Entity may at any time, for the purpose of obtaining the  satisfaction  and discharge
of this  Indenture  or for any other  purpose,  by Issuing  Entity  Request  direct any Paying  Agent to pay to the
Securities  Administrator  all sums held in trust by such  Paying  Agent,  such  sums to be held by the  Securities
Administrator  upon the same  trusts as those upon  which the sums were held by such  Paying  Agent;  and upon such
payment by any Paying Agent to the Securities  Administrator,  such Paying Agent shall be released from all further
liability with respect to such money.

                  Subject to  applicable  laws with respect to escheat of funds,  any money held by the  Securities
Administrator  or any  Paying  Agent in trust  for the  payment  of any  amount  due with  respect  to any Note and
remaining  unclaimed for one year after such amount has become due and payable shall be discharged  from such trust
and be paid to the Issuing Entity on Issuing Entity Request;  and the Holder of such Note shall  thereafter,  as an
unsecured  general  creditor,  look only to the Issuing  Entity for payment  thereof (but only to the extent of the
amounts so paid to the Issuing  Entity),  and all liability of the  Securities  Administrator  or such Paying Agent
with respect to such trust money shall thereupon cease;  provided,  however,  that the Securities  Administrator or
such Paying  Agent,  before being  required to make any such  repayment,  shall at the expense and direction of the
Issuing Entity cause to be published once, in an Authorized  Newspaper  published in the English  language,  notice
that such money remains  unclaimed and that,  after a date  specified  therein which shall not be less than 30 days
from the date of such  publication,  any  unclaimed  balance  of such money  then  remaining  will be repaid to the
Issuing  Entity.  The  Securities  Administrator  may also adopt and employ,  at the expense and  direction  of the
Issuing  Entity,  any other  reasonable  means of notification  of such repayment  (including,  but not limited to,
mailing  notice of such  repayment  to Holders  whose  Notes have been  called  but have not been  surrendered  for
redemption  or whose  right to or interest  in monies due and  payable  but not  claimed is  determinable  from the
records  of the  Securities  Administrator  or of any  Paying  Agent,  at the last  address of record for each such
Holder).

                  Section 3.04.     Existence.

                  The Issuing Entity will keep in full effect its  existence,  rights and franchises as a statutory
trust under the laws of the State of Delaware (unless it becomes,  or any successor  Issuing Entity hereunder is or
becomes,  organized  under the laws of any  other  state or of the  United  States of  America,  in which  case the
Issuing  Entity  will keep in full  effect  its  existence,  rights  and  franchises  under the laws of such  other
jurisdiction)  and will obtain and preserve its  qualification  to do business in each  jurisdiction  in which such
qualification  is or shall be necessary to protect the validity and  enforceability  of this Indenture,  the Notes,
the Mortgage Loans and each other instrument or agreement included in the Trust Estate.

                  Section 3.05.     Payment of Principal and Interest.

                  (a)      On each  Payment Date from  amounts on deposit in the Note  Account in  accordance  with
Section 8.02 hereof,  the  Securities  Administrator  shall pay (i) to the Swap  Provider,  any Net Swap Payment or
Swap  Termination  Payment (other than any Swap Termination  Payment  resulting from a Swap Provider Trigger Event)
owed to the Swap Provider and (ii) to the Persons  specified below, to the extent provided  therein,  the Available
Funds for such Payment Date in the following order of priority:

                  (A)      On each  Payment  Date,  the Group 1 Interest  Remittance  Amount for such  Payment Date
         will be distributed by the Securities Administrator as follows:

                  first,  to the Class  1-A-1  Notes,  the Class  Monthly  Interest  Amount and any Class  Interest
         Carryover Shortfall for such class and such Payment Date;

                  second,  to the extent not paid  pursuant to priority (B) below,  to the Class 2-A-1  Notes,  the
         Class 2-A-2 Notes,  the Class 2-A-3 Notes and the Class 2-A-4 Notes,  the related Class  Monthly  Interest
         Amount and any related  Class  Interest  Carryover  Shortfall  for each such class and that Payment  Date,
         allocated  among each such class of notes on a pro rata basis based on each note's Class Monthly  Interest
         Amount and Class Interest Carryover Shortfall;

                  (B)      On each  Payment  Date,  the Group 2 Interest  Remittance  Amount for such  Payment Date
         will be distributed as follows:

                  first,  to the Class  2-A-1  Notes,  the Class 2-A-2  Notes,  the Class 2-A-3 Notes and the Class
         2-A-4  Notes,  the  related  Class  Monthly  Interest  Amount and any  related  Class  Interest  Carryover
         Shortfall  for each such class and that Payment  Date,  allocated  among each such class of notes on a pro
         rata basis based on each note's Class Monthly Interest Amount and Class Interest Carryover Shortfall;

                  second,  to the extent not paid  pursuant to priority (A) above,  to the Class 1-A-1  Notes,  the
         Class Monthly Interest Amount and any Class Interest  Carryover  Shortfall for such class and such Payment
         Date;

                  (C)      On each Payment Date,  the Interest  Remittance  Amount  remaining for such Payment Date
         will be distributed as follows:

                  first,  sequentially,  to the Class M-1,  Class M-2,  Class M-3, Class M-4, Class M-5, Class M-6,
         Class M-7 (allocated among the Class M-7 Notes,  pro rata based on their respective Note Balances),  Class
         M-8 (allocated  among the Class M-8 Notes,  pro rata based on their  respective Note Balances),  Class M-9
         and M-10 Notes,  in that order,  the Class  Monthly  Interest  Amount for each such class and that Payment
         Date;

                  (D)      On each Payment  Date,  (1) prior to the Stepdown  Date or (2) on which a Trigger  Event
         is in effect, concurrently as follows:

                           (i)      from the Group 1 Principal Remittance Amount,

                  first,  to the Class 1-A-1  Notes,  the Group 1 Principal  Distribution  Amount for that  Payment
         Date  (excluding any  Overcollateralization  Increase  Amount  included  therein),  until the Note Balance
         thereof has been reduced to zero;

                  second and following the payments  pursuant to priority (D)(ii) below,  sequentially to the Class
         2-A-1 Notes,  the Class 2-A-2 Notes,  the Class 2-A-3 Notes and the Class 2-A-4 Notes, in that order,  the
         remaining  Group 1 Principal  Distribution  Amount  (excluding any  Overcollateralization  Increase Amount
         included  therein) in reduction of the Note  Balances,  until the Note Balances  thereof have been reduced
         to zero;  provided,  that  notwithstanding  the foregoing  order of priority,  if on any Payment Date, the
         aggregate  Note  Balance of the  Subordinate  Notes as of the day prior to such  Payment  Date is equal to
         zero and the  Overcollateralization  Amount for the prior Payment Date is equal to zero,  then such amount
         shall be paid to the Group 2 Notes, pro rata, based on their respective Note Balances;

                  (ii)     from the Group 2 Principal Remittance Amount,

                  first,  sequentially to the Class 2-A-1 Notes,  the Class 2-A-2 Notes,  the Class 2-A-3 Notes and
         the  Class  2-A-4  Notes,  in that  order,  the  Group 2  Principal  Distribution  Amount  (excluding  any
         Overcollateralization  Increase  Amount  included  therein) in reduction of the Note  Balances,  until the
         Note Balances thereof have been reduced to zero;  provided,  that  notwithstanding  the foregoing order of
         priority,  if on any Payment  Date,  the  aggregate  Note Balance of the  Subordinate  Notes as of the day
         prior to such Payment  Date is equal to zero and the  Overcollateralization  Amount for the prior  Payment
         Date is equal to zero,  then such amount  shall be paid to the  Group 2  Notes,  pro rata,  based on their
         respective Note Balances;

                  second and following the payments  pursuant to priority  (D)(i) above,  to the Class 1-A-1 Notes,
         the remaining Group 2 Principal Distribution Amount (excluding any  Overcollateralization  Increase Amount
         included therein) for that Payment Date, until the Note Balance thereof has been reduced to zero;

                  (iii)    from the Principal  Remittance Amount remaining,  sequentially,  to the Class M-1, Class
         M-2, Class M-3, Class M-4,  Class M-5,  Class M-6,  Class M-7  (allocated  among the Class M-7 Notes,  pro
         rata based on their  respective Note Balances),  Class M-8 (allocated  among the Class M-8 Notes, pro rata
         based on their  respective  Note  Balances),  Class  M-9 and M-10  Notes,  in that  order,  the  Principal
         Distribution Amount remaining  (excluding any  Overcollateralization  Increase Amount included therein) in
         reduction of the Note Balances, until the Note Balances thereof have been reduced to zero;

                  (E)      On each  Payment  Date,  (1) on or after  the  Stepdown  Date or (2) on which a  Trigger
         Event is not in effect, concurrently as follows:

                  (i)      from the Group 1 Principal Remittance Amount,

                  first,  to the Class  1-A-1  Notes,  the Group 1 Senior  Principal  Distribution  Amount for that
         Payment Date, until the Note Balance thereof has been reduced to zero;

                  second and following the payments  pursuant to priority (E)(ii) below,  sequentially to the Class
         2-A-1 Notes,  the Class 2-A-2 Notes,  the Class 2-A-3 Notes and the Class 2-A-4 Notes, in that order,  the
         Group 2 Senior Principal  Distribution  Amount  remaining unpaid in reduction of the Note Balances,  until
         the Note Balances thereof have been reduced to zero;  provided,  that  notwithstanding the foregoing order
         of priority,  if on any Payment Date,  the aggregate Note Balance of the  Subordinate  Notes as of the day
         prior to such Payment  Date is equal to zero and the  Overcollateralization  Amount for the prior  Payment
         Date is equal to zero,  then such amount  shall be paid to the  Group 2  Notes,  pro rata,  based on their
         respective Note Balances;

                  (ii)     from the Group 2 Principal Remittance Amount,

                  first,  sequentially to the Class 2-A-1 Notes,  the Class 2-A-2 Notes,  the Class 2-A-3 Notes and
         the Class 2-A-4 Notes, in that order,  the Group 2 Senior  Principal  Distribution  Amount in reduction of
         the  Note  Balances,  until  the  Note  Balances  thereof  have  been  reduced  to  zero;  provided,  that
         notwithstanding  the foregoing  order of priority,  if on any Payment Date,  the aggregate Note Balance of
         the   Subordinate   Notes  as  of  the  day  prior  to  such  Payment  Date  is  equal  to  zero  and  the
         Overcollateralization  Amount for the prior Payment Date is equal to zero,  then such amount shall be paid
         to the Group 2 Notes, pro rata, based on their respective Note Balances;

                  second and following the payments  pursuant to priority  (E)(i) above,  to the Class 1-A-1 Notes,
         the Group 1 Senior  Principal  Distribution  Amount remaining unpaid for that Payment Date, until the Note
         Balance thereof has been reduced to zero;

                  (iii)    from the Principal Remittance Amount remaining, as follows

                  first,  to the Class M-1 Notes,  the Class M-1  Principal  Distribution  Amount for such  Payment
         Date, until the Note Balance thereof has been reduced to zero;

                  second,  to the Class M-2 Notes,  the Class M-2  Principal  Distribution  Amount for such Payment
         Date, until the Note Balance thereof has been reduced to zero;

                  third,  to the Class M-3 Notes,  the Class M-3  Principal  Distribution  Amount for such  Payment
         Date, until the Note Balance thereof has been reduced to zero;

                  fourth,  to the Class M-4 Notes,  the Class M-4  Principal  Distribution  Amount for such Payment
         Date, until the Note Balance thereof has been reduced to zero;

                  fifth,  to the Class M-5 Notes,  the Class M-5  Principal  Distribution  Amount for such  Payment
         Date, until the Note Balance thereof has been reduced to zero;

                  sixth,  to the Class M-6 Notes,  the Class M-6  Principal  Distribution  Amount for such  Payment
         Date, until the Note Balance thereof has been reduced to zero;

                  seventh,  to the Class M-7 Notes,  the Class M-7 Principal  Distribution  Amount for such Payment
         Date (allocated among the Class M-7 Notes,  pro rata based on their  respective Note Balances),  until the
         Note Balances thereof has been reduced to zero;

                  eighth,  to the Class M-8 Notes,  the Class M-8  Principal  Distribution  Amount for such Payment
         Date (allocated among the Class M-8 Notes,  pro rata based on their  respective Note Balances),  until the
         Note Balances thereof have been reduced to zero;

                  ninth,  to the Class M-9 Notes,  the Class M-9  Principal  Distribution  Amount for such  Payment
         Date, until the Note Balance thereof has been reduced to zero; and

                  tenth,  to the Class M-10 Notes,  the Class M-10 Principal  Distribution  Amount for such Payment
         Date, until the Note Balance thereof has been reduced to zero;

                  (F)      From the Available Funds remaining for such Payment Date as follows:

                  first,  to the Notes,  the  Overcollateralization  Increase  Amount for such Payment Date, in the
         following order of priority:

                           (i)      the Group 1 Allocation Percentage of the Overcollateralization  Increase Amount
                  to the Group 1 Notes in reduction of the Note  Balance,  until the Note Balance  thereof has been
                  reduced to zero;

                           (ii)     the Group 2 Allocation Percentage of the Overcollateralization  Increase Amount
                  to the Group 2 Notes  (allocated  among such notes in the order of  priority  set forth in clause
                  (D) above) in reduction of the Note Balance,  until the Note  Balances  thereof have been reduced
                  to zero;

                           (iii)    any remaining  Overcollateralization  Increase Amount, pro rata, to the Group 1
                  Notes and Group 2 Notes then  entitled to principal in reduction of the Note  Balance,  until the
                  Note Balances thereof have been reduced to zero;

                           (iv)     any remaining  Overcollateralization Increase Amount sequentially, to the Class
                  M-1, Class M-2,  Class M-3,  Class M-4,  Class M-5,  Class M-6,  Class M-7  (allocated  among the
                  Class M-7 Notes,  pro rata based on their  respective Note Balances),  Class M-8 (allocated among
                  the Class M-8  Notes,  pro rata  based on their  respective  Note  Balances),  Class M-9 and M-10
                  Notes,  in that order,  in each case in  reduction of the Note  Balance  thereof,  until the Note
                  Balance thereof has been reduced to zero;

                  second,  sequentially,  to the Class M-1,  Class M-2, Class M-3, Class M-4, Class M-5, Class M-6,
         Class M-7 (allocated among the Class M-7 Notes,  pro rata based on their respective Note Balances),  Class
         M-8 (allocated  among the Class M-8 Notes,  pro rata based on their  respective Note Balances),  Class M-9
         and M-10 Notes,  in that order,  in each case,  first (a) any related Class Interest  Carryover  Shortfall
         and then (b) any related Allocated Realized Loss Amount;

                  third,  concurrently  and pro rata based on the related Basis Risk  Shortfall  Amount due to each
         group,  (i) to the Class 1-A-1  Notes,  the related  Basis Risk  Shortfall  Amount and (ii) to the Group 2
         Notes, pro rata among the Group 2 Notes, the related Basis Risk Shortfall Amount

                  fourth,  sequentially,  to the Class M-1,  Class M-2, Class M-3, Class M-4, Class M-5, Class M-6,
         Class M-7 (allocated among the Class M-7 Notes,  pro rata based on their respective Note Balances),  Class
         M-8 (allocated  among the Class M-8 Notes,  pro rata based on their  respective Note Balances),  Class M-9
         and M-10 Notes, in that order, the related Basis Risk Shortfall Amount;

                  fifth,  to the Swap  Provider,  any Swap  Termination  Payments  resulting  from a Swap  Provider
         Trigger event; and

                  sixth, to the Certificate  Paying Agent for deposit in the Certificate  Distribution  Account and
         distribution pursuant to the Trust Agreement.

                  (b)      On each Payment  Date,  all amounts  representing  Prepayment  Charges in respect of the
Mortgage Loans received  during the related  Prepayment  Period shall be remitted to the  Certificate  Paying Agent
for deposit in the Certificate  Distribution Account and distribution pursuant to the Trust Agreement and shall not
be available for payment to the Holders of any Class of Notes.

                  (c)      Following  the  foregoing  payments,  an  amount  equal  to  the  amount  of  Subsequent
Recoveries  deposited  into the  Collection  Account  pursuant to Section  3.10(a)(iii)  of the Sale and  Servicing
Agreement  shall be applied to increase the Note Balance of the Class of Notes with the Highest  Priority up to the
extent of such  Realized  Losses  previously  unreimbursed  to that Class of Notes  pursuant  to Section  3.29.  An
amount equal to the amount of any  remaining  Subsequent  Recoveries  shall be applied to increase the Note Balance
of the  Class of Notes  with the next  Highest  Priority,  up to the  amount  of such  Realized  Losses  previously
allocated  to that Class of Notes  pursuant  to Section  3.29.  Holders of such Notes will not be  entitled  to any
distribution in respect of interest on the amount of such increases for any Interest  Accrual Period  preceding the
Payment Date on which such increase  occurs.  Any such increases  shall be applied to the Note Balance of each Note
of such Class in accordance with its respective Percentage Interest.

                  (d)      On each Payment  Date,  after making the  payments of the  Available  Funds as set forth
above, the Securities Administrator shall pay the amount on deposit in the Swap Account as follows:

                  first,  concurrently,  to the Class A Notes,  any related Class Monthly Interest Amount and Class
Interest Carryover Shortfall,  pro rata, to the extent remaining unpaid;  provided,  that for this purpose no Notes
held by the Seller, the Sponsor or any Affiliate shall receive such distribution;

                  second,  sequentially,  to the Class M-1,  Class M-2, Class M-3, Class M-4, Class M-5, Class M-6,
Class M-7-A and Class M-8-A Notes,  in that order,  any related Class Monthly  Interest  Amount and Class  Interest
Carryover Shortfall, to the extent remaining unpaid;

                  third,  to the Class A Notes and  Subordinate  Notes  (other than the Class  M-7-B,  Class M-8-B,
Class M-9 and Class M-10 Notes), the  Overcollateralization  Deficiency Amount for such Payment Date, to the extent
remaining unpaid;  provided,  that for this purpose no Notes held by the Seller, the Sponsor or any Affiliate shall
receive such distribution;

                  fourth,  sequentially,  to the Class M-1,  Class M-2, Class M-3, Class M-4, Class M-5, Class M-6,
Class M-7-A and Class M-8-A  Notes,  in that order,  any related  Allocated  Realized  Loss  Amount,  to the extent
remaining unpaid;

                  fifth,  to the Class A Notes and  Subordinate  Notes  (other than the Class  M-7-B,  Class M-8-B,
Class M-9 and Class M-10 Notes) any related Basis Risk Shortfall Amount to the extent remaining unpaid; and

                  sixth,  any  remaining  amounts to the  Certificate  Paying Agent for deposit in the  Certificate
Distribution Account and distribution pursuant to the Trust Agreement

                  (e)      On each Payment Date, the Securities  Administrator  shall deposit into the Cap Account,
amounts if any,  received  from the Cap Provider.  On each Payment  Date,  following the payments on the Notes from
amounts on deposit in the Swap  Account as  described  above,  the  Securities  Administrator  will  withdraw  from
amounts in the Cap Account to make the following payments in the following order of priority:

                  first,  concurrently,  to the Class A Notes,  any related Class Monthly Interest Amount and Class
Interest Carryover Shortfall,  pro rata, to the extent remaining unpaid;  provided,  that for this purpose no Notes
held by the Seller, the Sponsor or any Affiliate shall receive such distribution;

                  second,  sequentially,  to the Class M-1,  Class M-2, Class M-3, Class M-4, Class M-5, Class M-6,
Class M-7-A and Class M-8-A Notes,  in that order,  any related Class Monthly  Interest  Amount and Class  Interest
Carryover Shortfall, to the extent remaining unpaid;

                  third,  to the Class A Notes and  Subordinate  Notes  (other than the Class  M-7-B,  Class M-8-B,
Class M-9 and Class M-10 Notes), the  Overcollateralization  Deficiency Amount for such Payment Date, to the extent
remaining unpaid;  provided,  that for this purpose no Notes held by the Seller, the Sponsor or any Affiliate shall
receive such distribution;

                  fourth,  sequentially,  to the Class M-1,  Class M-2, Class M-3, Class M-4, Class M-5, Class M-6,
Class M-7-A and Class M-8-A  Notes,  in that order,  any related  Allocated  Realized  Loss  Amount,  to the extent
remaining unpaid;

                  fifth,  to the Class A Notes and  Subordinate  Notes  (other than the Class  M-7-B,  Class M-8-B,
Class M-9 and Class M-10 Notes) any related Basis Risk Shortfall Amount to the extent remaining  unpaid;  provided,
that for this purpose no Notes held by the Seller,  the Sponsor or any Affiliate  shall receive such  distribution;
and

                  sixth,  any  remaining  amounts to the  Certificate  Paying Agent for deposit in the  Certificate
Distribution Account and distribution pursuant to the Trust Agreement

                  (f)      Each  payment  with respect to a  Book-Entry  Note shall be paid to the  Depository,  as
Holder  thereof,  and the Depository  shall be responsible for crediting the amount of such payment to the accounts
of its Depository  Participants in accordance with its normal  procedures.  Each  Depository  Participant  shall be
responsible  for disbursing  such payment to the Note Owners that it represents and to each indirect  participating
brokerage firm (a "brokerage  firm" or "indirect  participating  firm") for which it acts as agent.  Each brokerage
firm shall be  responsible  for  disbursing  funds to the Note Owners that it  represents.  None of the  Securities
Administrator,  the Indenture  Trustee,  the Note Registrar,  the Paying Agent, the Depositor,  the Servicer or the
Master  Servicer  shall  have any  responsibility  therefor  except as  otherwise  provided  by this  Indenture  or
applicable law.

                  (g)      On each Payment Date,  the  Certificate  Paying Agent shall  deposit in the  Certificate
Distribution  Account all amounts it received  pursuant to this Section 3.05 for the purpose of  distributing  such
funds pursuant to the Trust Agreement.

                  (h)      Any  installment  of  interest  or  principal,  if  any,  payable  on any  Note  that is
punctually  paid or duly provided for by the Issuing  Entity on the applicable  Payment Date shall,  if such Holder
shall have so requested at least five  Business  Days prior to the related  Record Date,  be paid to each Holder of
record on the preceding  Record Date, by wire transfer to an account  specified in writing by such Holder as of the
preceding  Record Date or in all other  cases or if no such  instructions  have been  delivered  to the  Securities
Administrator,  by check to such Noteholder  mailed to such Holder's  address as it appears in the Note Register in
the amount  required to be paid to such Holder on such  Payment Date  pursuant to such  Holder's  Notes;  provided,
however,  that the Securities  Administrator  shall not pay to such Holders any amount required to be withheld from
a payment to such Holder by the Code.

                  (i)      The  principal  of each  Note  shall  be due and  payable  in full on the  Final  Stated
Maturity  Date for such  Note.  All  principal  payments  on the Notes  shall be made to the  Noteholders  entitled
thereto in accordance  with the  Percentage  Interests  represented  by such Notes.  The  Securities  Administrator
shall notify the Person in whose name a Note is  registered  at the close of business on the Record Date  preceding
the Final Stated  Maturity Date or other final Payment Date  (including  any final Payment Date  resulting from any
redemption  pursuant to Section 8.07 hereof).  Such notice shall to the extent  practicable be mailed no later than
five  Business  Days prior to such Final Stated  Maturity  Date or other final  Payment Date and shall specify that
payment of the  principal  amount and any interest due with respect to such Note at the Final Stated  Maturity Date
or other final  Payment Date will be payable only upon  presentation  and  surrender of such Note and shall specify
the place where such Note may be presented and  surrendered  for such final  payment.  No interest  shall accrue on
the Notes on or after the Final Stated Maturity Date or any such other final Payment Date.

                  Section 3.06.     Protection of Trust Estate.

                  (a)      The  Issuing  Entity  will from  time to time  prepare,  execute  and  deliver  all such
supplements  and  amendments  hereto and all such financing  statements,  continuation  statements,  instruments of
further assurance and other instruments, and will take such other action necessary or advisable to:

                           (i)      maintain or preserve the lien and security  interest (and the priority thereof)
                  of this Indenture or carry out more effectively the purposes hereof;

                           (ii)     perfect,  publish  notice of or protect the validity of any Grant made or to be
                  made by this Indenture;

                           (iii)    cause the Issuing  Entity,  the Servicer or the Master  Servicer to enforce any
                  of the rights to the Mortgage Loans; or

                           (iv)     preserve and defend  title to the Trust Estate and the rights of the  Indenture
                  Trustee and the Noteholders in such Trust Estate against the claims of all persons and parties.

                  (b)      Except as otherwise provided in this Indenture,  the Securities  Administrator shall not
  remove any portion of the Trust Estate that consists of money or is evidenced by an  instrument,  certificate  or
  other  writing  from the  jurisdiction  in which it was held at the date of the most  recent  Opinion  of Counsel
  delivered  pursuant to Section  3.07 hereof (or from the  jurisdiction  in which it was held as  described in the
  Opinion of Counsel  delivered  on the  Closing  Date  pursuant  to Section  3.07(a)  hereof,  or if no Opinion of
  Counsel has yet been delivered  pursuant to Section 3.07(b)  hereof,  unless the Securities  Administrator  shall
  have first  received  an Opinion of Counsel to the effect  that the lien and  security  interest  created by this
  Indenture  with respect to such property  will  continue to be  maintained  after giving effect to such action or
  actions).

                  The   Issuing   Entity   hereby   designates   the   Securities   Administrator   its  agent  and
attorney-in-fact  to sign any  financing  statement,  continuation  statement  or other  instrument  required to be
signed pursuant to this Section 3.06 upon the Issuing Entity's  preparation  thereof and delivery to the Securities
Administrator.

                  Section 3.07.     Opinions as to Trust Estate.

                  (a)      On the Closing Date,  the Issuing  Entity shall furnish to the  Indenture  Trustee,  the
Securities  Administrator  and the Owner Trustee an Opinion of Counsel  either stating that, in the opinion of such
counsel,  such action has been taken with respect to the recording  and filing of this  Indenture,  any  indentures
supplemental  hereto,  and any other  requisite  documents,  and with  respect to the  execution  and filing of any
financing  statements  and  continuation  statements,  as are necessary to perfect and make  effective the lien and
first priority  security  interest in the  Collateral and reciting the details of such action,  or stating that, in
the opinion of such counsel,  no such action is necessary to make such lien and first  priority  security  interest
effective.

                  (b)      On or before April 15th in each calendar year,  beginning in 2008,  the Issuing  Entity,
upon request,  shall furnish to the Indenture  Trustee and the  Securities  Administrator  an Opinion of Counsel at
the expense of the Issuing Entity either  stating that, in the opinion of such counsel,  such action has been taken
with respect to the recording,  filing,  re-recording and re-filing of this Indenture,  any indentures supplemental
hereto and any other requisite  documents and with respect to the execution and filing of any financing  statements
and  continuation  statements  as is  necessary to maintain the lien and first  priority  security  interest in the
Collateral  and  reciting  the details of such action or stating that in the opinion of such counsel no such action
is  necessary  to maintain  such lien and  security  interest.  Such  Opinion of Counsel  shall also  describe  the
recording,  filing,  re-recording and re-filing of this Indenture, any indentures supplemental hereto and any other
requisite  documents and the execution and filing of any financing  statements  and  continuation  statements  that
will,  in the opinion of such  counsel,  be required to maintain the lien and security  interest in the  Collateral
until December 31st in the following calendar year.

                  Section 3.08.     Performance of Obligations.

                  The Issuing  Entity will  punctually  perform and observe all of its  obligations  and agreements
contained in this  Indenture,  the Basic  Documents and in the  instruments  and  agreements  included in the Trust
Estate.

                  The Issuing  Entity may contract with other  Persons to assist it in performing  its duties under
this  Indenture,  and any  performance  of such  duties  by a Person  identified  to the  Indenture  Trustee  in an
Officer's Certificate of the Issuing Entity shall be deemed to be action taken by the Issuing Entity.

                  The  Issuing  Entity  will not take any action or permit  any action to be taken by others  which
would release any Person from any of such Person's  covenants or  obligations  under any of the documents  relating
to the  Mortgage  Loans or under  any  instrument  included  in the  Trust  Estate,  or which  would  result in the
amendment, hypothecation,  subordination,  termination or discharge of, or impair the validity or effectiveness of,
any of the documents  relating to the Mortgage  Loans or any such  instrument,  except such actions as the Servicer
or the Master Servicer is expressly  permitted to take in the Sale and Servicing  Agreement.  The Indenture Trustee
and the  Securities  Administrator  may  exercise  the rights of the  Issuing  Entity to direct the  actions of the
Servicer and/or the Master Servicer pursuant to the Sale and Servicing Agreement.

                  The Issuing  Entity may retain an  administrator  and may enter into contracts with other Persons
for the performance of the Issuing  Entity's  obligations  hereunder,  and performance of such  obligations by such
Persons shall be deemed to be performance of such obligations by the Issuing Entity.

                  Section 3.09.     Negative  Covenants.  So long as any Notes are Outstanding,  the Issuing Entity
                                    shall not:

                           (i)      except as expressly permitted by this Indenture,  sell,  transfer,  exchange or
                  otherwise dispose of the Trust Estate;

                           (ii)     claim any credit  on, or make any  deduction  from the  principal  or  interest
                  payable in respect of, the Notes (other than amounts  properly  withheld from such payments under
                  the Code) or assert any claim  against any present or former  Noteholder by reason of the payment
                  of the taxes levied or assessed upon any part of the Trust Estate;

                           (iii)    (A) permit the validity or effectiveness  of this Indenture to be impaired,  or
                  permit the lien of this  Indenture  to be  amended,  hypothecated,  subordinated,  terminated  or
                  discharged,  or permit any Person to be released from any covenants or  obligations  with respect
                  to the Notes under this Indenture  except as may be expressly  permitted  hereby,  (B) permit any
                  lien, charge,  excise,  claim,  security interest,  mortgage or other encumbrance (other than the
                  lien of this  Indenture)  to be  created  on or extend to or  otherwise  arise upon or burden the
                  Trust Estate or any part thereof or any  interest  therein or the proceeds  thereof or (C) permit
                  the lien of this  Indenture not to  constitute a valid first  priority  security  interest in the
                  Trust Estate; or

                           (iv)     waive or impair,  or fail to assert rights under, the Mortgage Loans, or impair
                  or cause to be impaired the Issuing  Entity's  interest in the  Mortgage  Loans,  the  Assignment
                  Agreement or in any Basic  Document,  if any such action would  materially  and adversely  affect
                  the interests of the Noteholders.

                  Section 3.10.     [Reserved].

                  Section 3.11.     [Reserved.]

                  Section 3.12.     Representations and Warranties Concerning the Mortgage Loans.

                  The Indenture Trustee,  as pledgee of the Mortgage Loans, has the benefit of the  representations
and warranties  made by the Originator in the Purchase  Agreement  concerning the Originator and the Mortgage Loans
to the same extent as though such  representations  and warranties were made directly to the Indenture Trustee.  If
a Responsible  Officer of the Indenture Trustee or the Securities  Administrator has actual knowledge of any breach
of any  representation or warranty made by the Originator in the Purchase  Agreement,  the Indenture Trustee or the
Securities  Administrator  shall promptly notify the Originator of such finding and the Originator's  obligation to
cure such defect or repurchase or substitute for the related Mortgage Loan.

                  Section 3.13.     Amendments to Sale and Servicing Agreement.

                  The Issuing Entity  covenants with the Indenture  Trustee and the Securities  Administrator  that
it will not enter into any amendment or supplement  to the Sale and Servicing  Agreement  without the prior written
consent of the Indenture Trustee and the Securities Administrator.

                  Section 3.14.     Servicer as Agent and Bailee of the Indenture Trustee.

                  Solely for purposes of perfection  under  Section  9-305 of the UCC or other  similar  applicable
law,  rule or  regulation of the state in which such  property is held by the  Servicer,  the Issuing  Entity,  the
Indenture  Trustee and the Securities  Administrator  hereby  acknowledge  that the Servicer is acting as bailee of
the Indenture  Trustee in holding  amounts on deposit in the Collection  Account,  as well as its bailee in holding
any related documents  released to the Servicer,  and any other items constituting a part of the Trust Estate which
from time to time come into the possession of the Servicer.  It is intended  that, by the Servicer's  acceptance of
such bailee  arrangement,  the Indenture Trustee,  as a secured party of the Mortgage Loans, will be deemed to have
possession  of such related  documents,  such monies and such other items for purposes of Section  9-305 of the UCC
of the state in which such  property is held by the  Servicer.  Neither the  Indenture  Trustee nor the  Securities
Administrator shall be liable with respect to such documents, monies or items while in possession of the Servicer.

                  Section 3.15.     Investment Company Act.

                  The Issuing  Entity  shall not become an  "investment  company" or be under the  "control"  of an
"investment  company" as such terms are defined in the Investment Company Act of 1940, as amended (or any successor
or  amendatory  statute),  and the rules and  regulations  thereunder  (taking  into  account  not only the general
definition  of the term  "investment  company"  but also any  available  exceptions  to such  general  definition);
provided,  however,  that the  Issuing  Entity  shall be in  compliance  with this  Section  3.15 if it shall  have
obtained an order exempting it from  regulation as an "investment  company" so long as it is in compliance with the
conditions imposed in such order.

                  Section 3.16.     Issuing Entity May Consolidate, etc.

                  (a)      The  Issuing  Entity  shall not  consolidate  or merge  with or into any  other  Person,
unless:

                           (i)      the Person (if other  than the  Issuing  Entity)  formed by or  surviving  such
                  consolidation  or merger shall be a Person  organized  and existing  under the laws of the United
                  States of America or any state or the  District of Columbia  and shall  expressly  assume,  by an
                  indenture  supplemental  hereto,  executed  and  delivered  to  the  Indenture  Trustee  and  the
                  Securities  Administrator,  in form  reasonably  satisfactory  to the  Indenture  Trustee and the
                  Securities  Administrator,  the due and punctual  payment of the principal of and interest on all
                  Notes,  and all amounts payable to the Indenture  Trustee and the Securities  Administrator,  the
                  payment to the  Certificate  Paying Agent of all amounts due to the  Certificateholders,  and the
                  performance  or observance of every  agreement and covenant of this  Indenture on the part of the
                  Issuing Entity to be performed or observed, all as provided herein;

                           (ii)     immediately after giving effect to such transaction,  no Event of Default shall
                  have occurred and be continuing;

                           (iii)    the  Rating   Agencies  shall  have  notified  the  Issuing  Entity  that  such
                  transaction  shall not cause the rating of the Notes to be reduced,  suspended or withdrawn or to
                  be considered by either Rating Agency to be below investment grade;

                           (iv)     the Issuing  Entity  shall have  received an Opinion of Counsel (and shall have
                  delivered a copy  thereof to the  Indenture  Trustee  and the  Securities  Administrator)  to the
                  effect that such  transaction  will not (A) result in a "substantial  modification"  of the Notes
                  under  Treasury  Regulation  section  1.1001-3,  or  adversely  affect the status of the Notes as
                  indebtedness  for federal income tax purposes,  or (B) if 100% of the  Certificates are not owned
                  by a REIT, a "qualified  REIT  subsidiary"  or by an entity that is  wholly-owned  by a REIT or a
                  "qualified REIT  subsidiary" and disregarded for federal income tax purposes,  cause the Trust to
                  be subject to an entity level tax for federal income tax purposes;

                           (v)      any  action  that is  necessary  to  maintain  the lien and  security  interest
                  created by this Indenture shall have been taken;

                           (vi)     the  Issuing  Entity  shall have  delivered  to the  Indenture  Trustee and the
                  Securities  Administrator  an Officer's  Certificate  and an Opinion of Counsel each stating that
                  such  consolidation  or merger and such  supplemental  indenture comply with this Article III and
                  that all  conditions  precedent  herein  provided for or relating to such  transaction  have been
                  complied with  (including any filing  required by the Exchange  Act), and that such  supplemental
                  indenture is enforceable; and

                           (vii)    the consent of the Holders of not less than 50% of the  aggregate  Note Balance
                  of the Notes has been obtained.

                  Section 3.17.     Successor or Transferee.

                  (a)      Upon any  consolidation  or merger of the  Issuing  Entity in  accordance  with  Section
3.16(a),  the Person formed by or surviving such  consolidation  or merger (if other than the Issuing Entity) shall
succeed to, and be  substituted  for,  and may  exercise  every right and power of, the Issuing  Entity  under this
Indenture with the same effect as if such Person had been named as the Issuing Entity herein.

                  (b)      Upon a conveyance  or transfer of all the assets and  properties  of the Issuing  Entity
as permitted  under this  Agreement,  the Issuing Entity will be released from every covenant and agreement of this
Indenture  to be observed or  performed  on the part of the Issuing  Entity with  respect to the Notes  immediately
upon the delivery of written notice to the Indenture  Trustee and the Securities  Administrator  of such conveyance
or transfer.

                  Section 3.18.     No Other Business.

                  The Issuing  Entity shall not engage in any business  other than  financing,  purchasing,  owning
and  selling  and  managing  the  Mortgage  Loans and the  issuance  of the Notes and  Certificates  in the  manner
contemplated by this Indenture and the Basic Documents and all activities incidental thereto.

                  Section 3.19.     No Borrowing.

                  The Issuing  Entity  shall not issue,  incur,  assume,  guarantee  or  otherwise  become  liable,
directly or indirectly, for any indebtedness except for the Notes under this Indenture.

                  Section 3.20.     Guarantees, Loans, Advances and Other Liabilities.

                  Except as  contemplated  by this Indenture or the Basic  Documents,  the Issuing Entity shall not
make any loan or advance or credit to, or guarantee  (directly or indirectly or by an instrument  having the effect
of assuring  another's  payment or performance  on any obligation or capability of so doing or otherwise),  endorse
or otherwise become  contingently  liable,  directly or indirectly,  in connection with the obligations,  stocks or
dividends of, or own,  purchase,  repurchase or acquire (or agree  contingently  to do so) any stock,  obligations,
assets or securities of, or any other interest in, or make any capital contribution to, any other Person.

                  Section 3.21.     Capital Expenditures.

                  The  Issuing  Entity  shall  not  make  any  expenditure  (by  long-term  or  operating  lease or
otherwise) for capital assets (either realty or personalty).

                  Section 3.22.     Determination of Note Rate.

                  On each Interest  Determination Date, the Securities  Administrator shall determine LIBOR and the
related Note Rate for each Class of Notes for the following  Interest  Accrual Period.  The  establishment of LIBOR
on  each  Interest  Determination  Date  by  the  Securities  Administrator  and  the  Securities   Administrator's
calculation  of the rate of interest  applicable  to each Class of Notes for the related  Interest  Accrual  Period
shall (in the absence of manifest error) be final and binding.

                  Section 3.23.     Restricted Payments.

                  The  Issuing  Entity  shall  not,  directly  or  indirectly,  (i) pay any  dividend  or make  any
distribution  (by  reduction of capital or  otherwise),  whether in cash,  property,  securities  or a  combination
thereof,  to the Owner  Trustee or any owner of a  beneficial  interest in the  Issuing  Entity or  otherwise  with
respect to any  ownership  or equity  interest  or security in or of the Issuing  Entity,  (ii)  redeem,  purchase,
retire or  otherwise  acquire  for value any such  ownership  or equity  interest or security or (iii) set aside or
otherwise  segregate  any amounts for any such purpose;  provided,  however,  that the Issuing  Entity may make, or
cause to be made,  (x)  distributions  and payments to the Owner  Trustee,  the Indenture  Trustee,  the Securities
Administrator,  the Master Servicer,  the Servicer,  the Certificate  Registrar,  the Certificate Paying Agent, the
Noteholders and the  Certificateholders  as contemplated by, and to the extent funds are available for such purpose
under this Indenture and the Trust  Agreement and (y) payments to the Master  Servicer or the Servicer  pursuant to
the  terms of the Sale and  Servicing  Agreement.  The  Issuing  Entity  will not,  directly  or  indirectly,  make
payments  to or  distributions  from the Note  Account  except  in  accordance  with this  Indenture  and the Basic
Documents.

                  Section 3.24.     Notice of Events of Default.

                  The Issuing  Entity shall give the  Indenture  Trustee,  the  Securities  Administrator  and each
Rating Agency prompt written notice of each Event of Default hereunder and under the Trust Agreement.

                  Section 3.25.     Further Instruments and Acts.

                  Upon request of the Indenture  Trustee or the Securities  Administrator,  the Issuing Entity will
execute and deliver such further  instruments and do such further acts as may be reasonably  necessary or proper to
carry out more effectively the purpose of this Indenture.

                  Section 3.26.     Statements to Noteholders.

                  On each Payment Date, the Securities  Administrator  and the Certificate  Registrar shall prepare
and  make  available  on  the  Securities  Administrator's  website,  https://www.ctslink.com  (or  deliver  at the
recipient's option), to each Noteholder and  Certificateholder the most recent statement prepared by the Securities
Administrator pursuant to Section 7.05 hereof.

                  Section 3.27.     [Reserved].

                  Section 3.28.     Certain Representations Regarding the Trust Estate.

                  (a)      With respect to that portion of the  Collateral  described in clauses (a) through (d) of
the  definition  of Trust  Estate,  the Issuing  Entity  represents  to the  Indenture  Trustee and the  Securities
Administrator that:

                           (i)      This Indenture creates a valid and continuing  security interest (as defined in
                  the  applicable  UCC) in the  Collateral  in  favor  of the  Indenture  Trustee,  which  security
                  interest is prior to all other  liens,  and is  enforceable  as such as against  creditors of and
                  purchasers from the Issuing Entity.

                           (ii)     The Collateral  constitutes "deposit accounts" or "instruments," as applicable,
                  within the meaning of the applicable UCC.

                           (iii)    The Issuing  Entity owns and has good and marketable  title to the  Collateral,
                  free and clear of any lien, claim or encumbrance of any Person.

                           (iv)     The  Issuing  Entity  has  taken  all steps  necessary  to cause the  Indenture
                  Trustee to become the account holder of the Collateral.

                           (v)      Other than the security  interest granted to the Indenture  Trustee pursuant to
                  this Indenture,  the Issuing Entity has not pledged,  assigned, sold, granted a security interest
                  in, or otherwise conveyed any of the Collateral.

                           (vi)     The  Collateral is not in the name of any Person other than the Issuing  Entity
                  or the  Indenture  Trustee.  The Issuing  Entity has not  consented to the bank  maintaining  the
                  Collateral to comply with instructions of any Person other than the Indenture Trustee.

                  (b)      With  respect to that  portion of the  Collateral  described  in clause (e), the Issuing
Entity represents to the Indenture Trustee and the Securities Administrator that:

                           (i)      This Indenture creates a valid and continuing  security interest (as defined in
                  the  applicable  UCC) in the  Collateral  in  favor  of the  Indenture  Trustee,  which  security
                  interest is prior to all other  liens,  and is  enforceable  as such as against  creditors of and
                  purchasers from the Issuing Entity.

                           (ii)     The  Collateral  constitutes  "general  intangibles"  within the meaning of the
                  applicable UCC.

                           (iii)    The Issuing  Entity owns and has good and marketable  title to the  Collateral,
                  free and clear of any lien, claim or encumbrance of any Person.

                           (iv)     Other than the security  interest granted to the Indenture  Trustee pursuant to
                  this Indenture,  the Issuing Entity has not pledged,  assigned, sold, granted a security interest
                  in, or otherwise conveyed any of the Collateral.

                  (c)      With  respect  to any  Collateral  in which a  security  interest  may be  perfected  by
filing,  the  Issuing  Entity  has not  authorized  the filing  of,  and is not aware of any  financing  statements
against,  the Issuing Entity,  that include a description of collateral  covering such  Collateral,  other than any
financing  statement  relating to the security interest granted to the Indenture Trustee hereunder or that has been
terminated.  The Issuing Entity is not aware of any judgment or tax lien filings against the Issuing Entity.

                  (d)      The Issuing  Entity has caused or will have caused,  within ten days,  the filing of all
appropriate  financing  statements in the proper filing office in the appropriate  jurisdictions  under  applicable
law in order to perfect the security  interest in all  Collateral  granted to the  Indenture  Trustee  hereunder in
which a security  interest may be perfected by filing and the Issuing  Entity will cause such security  interest to
be  maintained.  Any  financing  statement  that is filed in  connection  with this  Section  3.28 shall  contain a
statement that a purchase or security  interest in any collateral  described therein will violate the rights of the
secured party named in such financing statement.

                  (e)      The  foregoing  representations  may not be waived and shall survive the issuance of the
Notes.

                  Section 3.29.     Allocation of Realized Losses.

                  (a)      Any  Realized  Losses on the Mortgage  Loans will have the effect of first  reducing the
Excess  Interest for the related  Payment Date and second,  reducing the  Overcollateralization  Amount.  If on any
Payment  Date the  aggregate  Note  Balance of the Notes (after all payments of principal on such Payment Date have
been made) exceed the  aggregate  Principal  Balance of the  Mortgage  Loans (as of the last day of the related Due
Period and after  giving  effect to  principal  prepayments  received  during the  related  Prepayment  Period) the
Securities  Administrator  shall  allocate  such excess  first,  to the Class M-10 Notes,  in reduction of the Note
Balance thereof,  until reduced to zero,  second, to the Class M-9 Notes, in reduction of the Note Balance thereof,
until reduced to zero,  third, to the Class M-8 Notes, in reduction of the Note Balance  thereof  (allocated  among
the Class M-8 Notes,  pro rata based on their  respective Note  Balances),  until reduced to zero,  fourth,  to the
Class M-7 Notes, in reduction of the Note Balance thereof  (allocated  among the Class M-7 Notes, pro rata based on
their  respective  Note Balances),  until reduced to zero,  fifth, to the Class M-6 Notes, in reduction of the Note
Balance  thereof,  until reduced to zero,  sixth, to the Class M-5 Notes, in reduction of the Note Balance thereof,
until reduced to zero,  seventh,  to the Class M-4 Notes, in reduction of the Note Balance  thereof,  until reduced
to zero,  eighth,  to the Class M-3 Notes, in reduction of the Note Balance thereof,  until reduced to zero, ninth,
to the Class M-2 Notes,  in reduction of the Note Balance  thereof,  until reduced to zero and tenth,  to the Class
M-1 Notes, in reduction of the Note Balance thereof, until reduced to zero.

                  (b)      All Realized  Losses to be allocated to the Note  Balances of all Classes on any Payment
Date shall be so allocated  after the actual  payments to be made on such date as provided  above.  All  references
above to the Note  Balance of any Class of Notes shall be to the Note  Balance of such Class  immediately  prior to
the relevant Payment Date,  before reduction  thereof by any Realized Losses,  in each case to be allocated to such
Class of Notes, on such Payment Date.

                  Any  allocation  of Realized  Losses to a  Subordinate  Note on any Payment Date shall be made by
reducing  the Note Balance  thereof by the amount so  allocated.  No  allocations  of any Realized  Losses shall be
made to the Note Balances of the Class A Notes.

                  As used  herein,  an  allocation  of a  Realized  Loss on a "pro  rata  basis"  among two or more
specified  Classes of Notes means an allocation  on a pro rata basis,  among the various  Classes so specified,  to
each such Class of Notes on the basis of their then  outstanding  Note Balances  prior to giving effect to payments
to be made on such  Payment  Date.  All  Realized  Losses  and all  other  losses  allocated  to a Class  of  Notes
hereunder  will be allocated  among the Notes of such Class in proportion  to the  Percentage  Interests  evidenced
thereby.

                                                    ARTICLE IV

                                THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

                  Section 4.01.     The Notes.

                  Each Class of Notes shall be  registered in the name of a nominee  designated by the  Depository.
Beneficial  Owners will hold interests in the Notes through the book-entry  facilities of the Depository in minimum
initial Note Balances of $25,000 and integral  multiples of $1 in excess  thereof;  provided that the Notes must be
purchased in minimum total investments of $100,000 per Class.

                  The Securities  Administrator  may for all purposes  (including the making of payments due on the
Notes) deal with the  Depository as the  authorized  representative  of the  Beneficial  Owners with respect to the
Notes for the purposes of exercising the rights of Holders of the Notes  hereunder.  Except as provided in the next
succeeding  paragraph  of this Section  4.01,  the rights of  Beneficial  Owners with respect to the Notes shall be
limited  to those  established  by law and  agreements  between  such  Beneficial  Owners  and the  Depository  and
Depository  Participants.  Except as provided in Section  4.08 hereof,  Beneficial  Owners shall not be entitled to
definitive  notes for the Notes as to which they are the  Beneficial  Owners.  Requests and  directions  from,  and
votes of, the Depository as Holder of the Notes shall not be deemed  inconsistent  if they are made with respect to
different  Beneficial  Owners.  The Securities  Administrator  may establish a reasonable record date in connection
with  solicitations  of consents  from or voting by  Noteholders  and give notice to the  Depository of such record
date.  Without the consent of the Issuing  Entity and the Securities  Administrator,  no Note may be transferred by
the  Depository  except to a successor  Depository  that agrees to hold such Note for the account of the Beneficial
Owners.

                  In the event the Depository  Trust Company  resigns or is removed as  Depository,  the Securities
Administrator  with the  approval  of the  Issuing  Entity may  appoint a  successor  Depository.  If no  successor
Depository has been  appointed  within 30 days of the effective  date of the  Depository's  resignation or removal,
each Beneficial Owner shall be entitled to certificates  representing the Notes it beneficially  owns in the manner
prescribed in Section 4.08.

                  The Notes  shall,  on original  issue,  be executed on behalf of the Issuing  Entity by the Owner
Trustee,  not  in  its  individual  capacity  but  solely  as  Owner  Trustee,   authenticated  by  the  Securities
Administrator and delivered by the Securities Administrator to or upon the order of the Issuing Entity.

                  Section 4.02.     Registration of and Limitations on Transfer and Exchange of Notes; Appointment
                                    of Note Registrar and Certificate Registrar.

                  The  Securities  Administrator  shall  cause  to be kept at the  Corporate  Trust  Office  a Note
Register in which,  subject to such  reasonable  regulations as it may prescribe,  the Note Registrar shall provide
for the registration of Notes and of transfers and exchanges of Notes as herein provided.

                  Subject to the restrictions  and limitations set forth below,  upon surrender for registration of
transfer of any Note at the Corporate  Trust Office,  the Issuing Entity shall execute and the Note Registrar shall
authenticate  and  deliver,  in the name of the  designated  transferee  or  transferees,  one or more new Notes in
authorized initial Note Balances evidencing the same Class and aggregate Percentage Interests.

                  Subject to the  foregoing,  at the option of the  Noteholders,  Notes may be exchanged  for other
Notes of like tenor and in authorized  initial Note  Balances  evidencing  the same Class and aggregate  Percentage
Interests  upon  surrender  of the Notes to be  exchanged  at the  Corporate  Trust  Office of the Note  Registrar.
Whenever  any  Notes are so  surrendered  for  exchange,  the  Issuing  Entity  shall  execute  and the  Securities
Administrator  shall  authenticate  and deliver the Notes which the  Noteholder  making the exchange is entitled to
receive.  Each Note  presented or  surrendered  for  registration  of transfer or exchange shall (if so required by
the Note  Registrar) be duly endorsed by, or be accompanied by a written  instrument of transfer in form reasonably
satisfactory  to the Note Registrar duly executed by the Holder thereof or his attorney duly  authorized in writing
with such signature  guaranteed by a commercial bank or trust company located or having a correspondent  located in
the city of New York.  Notes delivered upon any such transfer or exchange will evidence the same  obligations,  and
will be entitled to the same rights and privileges, as the Notes surrendered.

                  Notwithstanding  anything to the contrary  contained herein, the Securities  Administrator  shall
not  register  transfer of any of the Notes owned by the Issuing  Entity or by the direct or indirect  owner of the
Owner Trust  Certificates  on the Closing Date when such entity or owner  proposes to transfer such Notes unless in
connection with such proposed  transfer,  the Issuing Entity and the Indenture  Trustee have received an Opinion of
Counsel,  satisfactory to the Indenture  Trustee,  that such Notes will be treated as indebtedness for U.S. federal
income tax purposes.

                  No service charge shall be made for any  registration  of transfer or exchange of Notes,  but the
Note  Registrar  shall  require  payment of a sum  sufficient to cover any tax or  governmental  charge that may be
imposed in connection with any registration of transfer or exchange of Notes.

                  The Issuing Entity hereby appoints the Securities  Administrator as (i) Certificate  Registrar to
keep at its  Corporate  Trust Office a  Certificate  Register  pursuant to Section  3.09 of the Trust  Agreement in
which,  subject to such reasonable  regulations as it may prescribe,  the  Certificate  Registrar shall provide for
the  registration  of  Certificates  and of transfers and exchanges  thereof  pursuant to Section 3.05 of the Trust
Agreement  and (ii) Note  Registrar  under  this  Indenture.  The  Securities  Administrator  hereby  accepts  such
appointments.

                  Section 4.03.     Mutilated, Destroyed, Lost or Stolen Notes.

                  If (i) any mutilated  Note is  surrendered  to the  Securities  Administrator,  or the Securities
Administrator  receives evidence to its satisfaction of the destruction,  loss or theft of any Note, and (ii) there
is  delivered  to the  Securities  Administrator  such  security or  indemnity as may be required by it to hold the
Issuing Entity,  the Indenture Trustee and the Securities  Administrator  harmless,  then, in the absence of notice
to the Issuing Entity,  the Note Registrar,  the Indenture Trustee or the Securities  Administrator  that such Note
has been  acquired by a bona fide  purchaser,  and provided that the  requirements  of Section 8-405 of the UCC are
met, the Issuing Entity shall execute,  and upon its request the Securities  Administrator  shall  authenticate and
deliver,  in exchange for or in lieu of any such  mutilated,  destroyed,  lost or stolen Note, a replacement  Note;
provided,  however,  that if any such destroyed,  lost or stolen Note, but not a mutilated Note,  shall have become
or within seven days shall be due and payable,  instead of issuing a replacement  Note,  the Issuing Entity may pay
such destroyed,  lost or stolen Note when so due or payable without  surrender  thereof.  If, after the delivery of
such  replacement  Note or payment of a  destroyed,  lost or stolen Note  pursuant to the proviso to the  preceding
sentence,  a bona fide purchaser of the original Note in lieu of which such  replacement  Note was issued  presents
for payment such original Note, the Issuing  Entity and the Securities  Administrator  shall be entitled to recover
such  replacement  Note (or such  payment)  from the  Person to whom it was  delivered  or any Person  taking  such
replacement  Note from such Person to whom such  replacement  Note was  delivered  or any  assignee of such Person,
except a bona fide  purchaser,  and shall be entitled to recover upon the security or indemnity  provided  therefor
to the extent of any loss,  damage,  cost or expense incurred by the Issuing Entity,  the Indenture  Trustee or the
Securities Administrator in connection therewith.

                  Upon the  issuance of any  replacement  Note under this  Section  4.03,  the  Issuing  Entity may
require the payment by the Holder of such Note of a sum  sufficient to cover any tax or other  governmental  charge
that may be imposed in relation thereto and any other reasonable  expenses  (including the fees and expenses of the
Indenture Trustee and the Securities Administrator) connected therewith.

                  Every  replacement  Note issued  pursuant to this Section 4.03 in  replacement  of any mutilated,
destroyed,  lost or stolen Note shall  constitute  an original  additional  contractual  obligation  of the Issuing
Entity,  whether or not the mutilated,  destroyed,  lost or stolen Note shall be at any time enforceable by anyone,
and shall be entitled to all the  benefits of this  Indenture  equally and  proportionately  with any and all other
Notes duly issued hereunder.

                  The  provisions of this Section 4.03 are exclusive and shall  preclude (to the extent lawful) all
other rights and remedies  with  respect to the  replacement  or payment of  mutilated,  destroyed,  lost or stolen
Notes.

                  Section 4.04.     Persons Deemed Owners.

                  Prior to due  presentment  for  registration  of transfer of any Note,  the Issuing  Entity,  the
Indenture  Trustee,  the  Securities  Administrator,  the  Paying  Agent and any agent of any of them may treat the
Person in whose  name any Note is  registered  (as of the day of  determination)  as the owner of such Note for the
purpose of  receiving  payments of  principal  of and  interest,  if any,  on such Note and for all other  purposes
whatsoever,  whether or not such Note be overdue,  and  neither the Issuing  Entity,  the  Indenture  Trustee,  the
Securities  Administrator  the  Paying  Agent  nor any  agent of any of them  shall be  affected  by  notice to the
contrary..

                  Section 4.05.     Cancellation.

                  All Notes  surrendered for payment,  registration of transfer,  exchange or redemption  shall, if
surrendered to any Person other than the  Securities  Administrator,  be delivered to the Securities  Administrator
and shall be promptly  cancelled by the  Securities  Administrator.  The Issuing  Entity may at any time deliver to
the Securities  Administrator  for cancellation any Notes previously  authenticated  and delivered  hereunder which
the  Issuing  Entity may have  acquired  in any manner  whatsoever,  and all Notes so  delivered  shall be promptly
cancelled  by the  Securities  Administrator.  No Notes shall be  authenticated  in lieu of or in exchange  for any
Notes cancelled as provided in this Section 4.05,  except as expressly  permitted by this Indenture.  All cancelled
Notes may be held or disposed of by the  Securities  Administrator  in  accordance  with its standard  retention or
disposal  policy as in effect at the time unless the Issuing  Entity shall direct by an Issuing Entity Request that
they be destroyed or returned to it;  provided,  however,  that such Issuing Entity Request is timely and the Notes
have not been previously disposed of by the Securities Administrator.

                  Section 4.06.     Book-Entry Notes.

                  The Notes, upon original  issuance,  will be issued in the form of typewritten Notes representing
the Book-Entry  Notes, to be delivered to The Depository Trust Company,  the initial  Depository,  by, or on behalf
of, the Issuing  Entity.  The Notes shall  initially be  registered on the Note Register in the name of Cede & Co.,
the nominee of the initial  Depository,  and no Beneficial Owner will receive a Definitive Note  representing  such
Beneficial  Owner's interest in such Note,  except as provided in Section 4.08. With respect to such Notes,  unless
and until  definitive,  fully  registered  Notes (the  "Definitive  Notes") have been issued to  Beneficial  Owners
pursuant to Section 4.08:

                           (i)      the provisions of this Section 4.06 shall be in full force and effect;

                           (ii)     the Note Registrar,  the Paying Agent, the Indenture Trustee and the Securities
                  Administrator  shall be entitled to deal with the  Depository  for all purposes of this Indenture
                  (including  the payment of principal of and interest on the Notes and the giving of  instructions
                  or  directions  hereunder)  as the sole holder of the Notes,  and shall have no obligation to the
                  Beneficial Owners of the Notes;

                           (iii)    to the extent that the  provisions of this Section 4.06 conflict with any other
                  provisions of this Indenture, the provisions of this Section 4.06 shall control;

                           (iv)     the rights of Beneficial  Owners shall be exercised only through the Depository
                  and shall be limited to those  established  by law and  agreements  between  such Owners of Notes
                  and the Depository  and/or the Depository  Participants.  Unless and until  Definitive  Notes are
                  issued  pursuant to Section 4.08, the initial  Depository  will make  book-entry  transfers among
                  the  Depository  Participants  and receive and transmit  payments of principal of and interest on
                  the Notes to such Depository Participants; and

                           (v)      whenever  this  Indenture  requires  or permits  actions to be taken based upon
                  instructions  or  directions  of  Holders  of Notes  evidencing  a  specified  percentage  of the
                  aggregate  Note  Balance  of the  Notes,  the  Depository  shall  be  deemed  to  represent  such
                  percentage  with  respect to the Notes only to the extent that it has  received  instructions  to
                  such effect  from  Beneficial  Owners  and/or  Depository  Participants  owning or  representing,
                  respectively,  such  required  percentage  of the  beneficial  interest  in  the  Notes  and  has
                  delivered such instructions to the Securities Administrator and the Indenture Trustee.

                  Section 4.07.     Notices to Depository.

                  Whenever a notice or other  communication  to the Note Holders is required under this  Indenture,
unless and until  Definitive  Notes shall have been issued to  Beneficial  Owners  pursuant  to Section  4.08,  the
Securities  Administrator  shall give all such notices and  communications  specified herein to be given to Holders
of the Notes to the Depository, and shall have no obligation to the Beneficial Owners.

                  Section 4.08.     Definitive Notes.

                  If (i) the Securities  Administrator  determines that the Depository is no longer willing or able
to properly  discharge its  responsibilities  with respect to the Notes and the Securities  Administrator is unable
to locate a qualified  successor or (ii) after the  occurrence of an Event of Default,  Beneficial  Owners of Notes
representing  beneficial  interests  aggregating  at least a majority of the Note  Balance of the Notes  advise the
Depository  in writing that the  continuation  of a book-entry  system  through the  Depository is no longer in the
best  interests  of the  Beneficial  Owners,  then the  Depository  shall  notify  all  Beneficial  Owners  and the
Securities  Administrator  of the  occurrence  of any such event and of the  availability  of  Definitive  Notes to
Beneficial  Owners  requesting the same. Upon surrender to the Securities  Administrator  of the typewritten  Notes
representing the Book-Entry Notes by the Depository,  accompanied by registration instructions,  the Issuing Entity
shall execute and the Securities  Administrator  shall  authenticate  the Definitive  Notes in accordance  with the
instructions  of the  Depository.  None of the Issuing Entity,  the Note  Registrar,  the Indenture  Trustee or the
Securities  Administrator  shall be liable for any delay in delivery of such instructions and may conclusively rely
on, and shall be  protected  in  relying  on,  such  instructions.  Upon the  issuance  of  Definitive  Notes,  the
Securities Administrator shall recognize the Holders of the Definitive Notes as Noteholders.

                  Section 4.09.     Tax Treatment.

                  The  Issuing  Entity has  entered  into this  Indenture,  and the Notes  will be issued  with the
intention that, for federal,  state and local income,  single  business and franchise tax purposes,  the Notes will
qualify  as  indebtedness.  The  Issuing  Entity,  the  Indenture  Trustee  and the  Securities  Administrator  (in
accordance with Section 6.06 hereof),  by entering into this Indenture,  and each Noteholder,  by its acceptance of
its Note (and each Beneficial Owner by its acceptance of an interest in the applicable  Book-Entry Note),  agree to
treat the Notes for federal, state and local income, single business and franchise tax purposes as indebtedness.

                  Section 4.10.     Satisfaction and Discharge of Indenture.

                  This  Indenture  shall cease to be of further  effect with  respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,  destroyed,  lost or stolen Notes,
(iii) rights of  Noteholders to receive  payments of principal  thereof and interest  thereon,  (iv) Sections 3.03,
3.04,  3.06,  3.09,  3.17, 3.19 and 3.20, (v) the rights,  obligations and immunities of the Indenture  Trustee and
the  Securities  Administrator  hereunder  (including  the  rights  of the  Indenture  Trustee  and the  Securities
Administrator  under Section 6.07 and the obligations of the Securities  Administrator under Section 4.11) and (vi)
the rights of  Noteholders  as  beneficiaries  hereof with respect to the property so deposited  with the Indenture
Trustee  payable to all or any of them, and the Indenture  Trustee,  on demand of and at the expense of the Issuing
Entity,  shall execute proper instruments  acknowledging  satisfaction and discharge of this Indenture with respect
to the Notes and shall release and deliver the Collateral to or upon the order of the Issuing Entity, when:

                  (A)      either

                  (1)      all Notes  theretofore  authenticated and delivered (other than (i) Notes that have been
         destroyed,  lost or stolen and that have been  replaced  or paid as  provided  in Section  4.03 hereof and
         (ii) Notes for whose  payment money has  theretofore  been  deposited in trust or  segregated  and held in
         trust by the Issuing  Entity and thereafter  repaid to the Issuing  Entity or discharged  from such trust,
         as provided in Section 3.03) have been delivered to the Securities Administrator for cancellation; or

                  (2)      all Notes not theretofore  delivered to the Securities  Administrator  for  cancellation
         (a) have  become due and  payable,  (b) will  become due and  payable at the Final  Stated  Maturity  Date
         within one year,  or (c) have been called for early  redemption  pursuant to Section 8.07 hereof,  and the
         Issuing Entity,  in the case of (a) or (b) above,  has  irrevocably  deposited or caused to be irrevocably
         deposited  with the  Securities  Administrator  cash (which cash shall come from payments  received on the
         Mortgage  Loans),  in trust for such  purpose,  in an amount  sufficient  to pay and  discharge the entire
         indebtedness  on such Notes then  outstanding not  theretofore  delivered to the Securities  Administrator
         for  cancellation  when due on the Final Stated Maturity Date or other final Payment Date, or, in the case
         of (c) above, the Issuing Entity shall have complied with all requirements of Section 8.07 hereof,

                  (B)      the  Issuing  Entity  has paid or caused to be paid all other  sums  payable  hereunder,
         pursuant to the terms of this Indenture; and

                  (C)      the  Issuing  Entity  has  delivered  to  the  Indenture   Trustee  and  the  Securities
         Administrator  an  Officer's   Certificate  and  an  Opinion  of  Counsel,  each  meeting  the  applicable
         requirements  of Section 10.01 hereof,  each stating that all  conditions  precedent  herein  provided for
         relating to the  satisfaction  and discharge of this Indenture have been complied with and, if the Opinion
         of Counsel relates to a deposit made in connection with Section  4.10(A)(2)(b)  above,  such opinion shall
         further be to the effect  that such  deposit  will  constitute  an  "in-substance  defeasance"  within the
         meaning of Revenue Ruling 85-42, 1985-1 C.B. 36, and in accordance  therewith,  the Issuing Entity will be
         the owner of the assets deposited in trust for federal income tax purposes.

                  Section 4.11.     Application of Trust Money.

                  All monies deposited with the Securities  Administrator  pursuant to Section 4.10 hereof shall be
held in trust and  applied  by it, in  accordance  with the  provisions  of the  Notes and this  Indenture,  to the
payment,  either directly or through any Paying Agent or the Issuing Entity,  Certificate  Paying Agent as designee
of the Issuing Entity, as the Securities  Administrator may determine, to the Holders of Notes or Certificates,  of
all sums due and to become due  thereon  for  principal  and  interest  or  otherwise;  but such monies need not be
segregated from other funds except to the extent required herein or required by law.

                  Section 4.12.     [Reserved].

                  Section 4.13.     Repayment of Monies Held by Paying Agent.

                  In connection  with the  satisfaction  and discharge of this Indenture with respect to the Notes,
all monies then held by any Person other than the Securities  Administrator  under the provisions of this Indenture
with respect to such Notes shall,  upon demand of the Issuing Entity,  be paid to the Securities  Administrator  to
be held and  applied  according  to Section  3.05 and  thereupon  such Person  shall be  released  from all further
liability with respect to such monies.

                  Section 4.14.     Temporary Notes.

                  Pending the  preparation  of any  Definitive  Notes,  the Issuing Entity may execute and upon its
written direction, the Securities  Administrator may authenticate and make available for delivery,  temporary Notes
that  are  printed,   lithographed,   typewritten,   photocopied  or  otherwise  produced,   in  any  denomination,
substantially  of the tenor of the  Definitive  Notes in lieu of which they are  issued  and with such  appropriate
insertions,  omissions,  substitutions and other variations as the officers executing such Notes may determine,  as
evidenced by their execution of such Notes.

                  If temporary  Notes are issued,  the Issuing  Entity will cause  Definitive  Notes to be prepared
without  unreasonable  delay.  After  the  preparation  of the  Definitive  Notes,  the  temporary  Notes  shall be
exchangeable  for  Definitive  Notes upon  surrender of the temporary  Notes at the  Corporate  Trust Office of the
Securities  Administrator,  without  charge to the  Holder.  Upon  surrender  for  cancellation  of any one or more
temporary  Notes,  the Issuing Entity shall execute and the Securities  Administrator  shall  authenticate and make
available for delivery,  in exchange  therefor,  Definitive  Notes of authorized  denominations  and of like tenor,
class and aggregate  principal amount.  Until so exchanged,  such temporary Notes shall in all respects be entitled
to the same benefits under this Indenture as Definitive Notes.

                  Section 4.15.     Representation Regarding ERISA.

                  By acquiring an Offered Note or interest  therein,  each Holder of such Note or Beneficial  Owner
of any such interest  will be deemed to represent  that either (1) it is not acquiring the Note with Plan Assets or
(2) (A) the  acquisition,  holding  and  transfer  of such  Note  will not  give  rise to a  non-exempt  prohibited
transaction  under  Section 406 of ERISA or Section 4975 of the Code and (B) the Notes are rated  investment  grade
or better and such person believes that the Notes are properly treated as indebtedness  without  substantial equity
features for purposes of the  Department of Labor  ("DOL")  regulation  29 C.F.R.  §  2510.3-101,  and agrees to so
treat the Notes.  Alternatively,  regardless  of the rating of the Notes,  such person may  provide the  Securities
Administrator  with an Opinion of Counsel,  which  Opinion of Counsel will not be at the expense of the Trust,  the
Issuing  Entity,  the Seller,  the Depositor,  the  Underwriter,  the Owner  Trustee,  the Indenture  Trustee,  the
Securities  Administrator,  the Master  Servicer,  the  Servicer or any  successor  Servicer  which opines that the
acquisition,  holding and transfer of such Note or interest  therein is permissible  under applicable law, will not
constitute or result in a non-exempt  prohibited  transaction  under ERISA or Section 4975 of the Code and will not
subject the Trust,  the Issuing  Entity,  the Seller,  the  Depositor,  the  Underwriter,  the Owner  Trustee,  the
Indenture Trustee,  the Securities  Administrator,  the Master Servicer,  the Servicer or any successor Servicer to
any obligation in addition to those undertaken in the Indenture.

                                                     ARTICLE V

                                               DEFAULT AND REMEDIES

                  Section 5.01.     Events of Default.

                  The Issuing  Entity shall  deliver to the  Indenture  Trustee and the  Securities  Administrator,
written  notice in the form of an Officer's  Certificate,  within five days after learning of the occurrence of any
event which with the giving of notice and the lapse of time would become an Event of Default  under  clause  (iii),
(iv) or (v) of the  definition  of "Event of Default,"  its status and what action the Issuing  Entity is taking or
proposes to take with respect  thereto.  Neither the Indenture  Trustee nor the Securities  Administrator  shall be
deemed to have  knowledge of any Event of Default  unless a  Responsible  Officer has actual  knowledge  thereof or
unless  written  notice of such Event of Default is received by a  Responsible  Officer and such notice  references
the Notes, the Trust or this Indenture.

                  Section 5.02.     Acceleration of Maturity; Rescission and Annulment.

                  If an  Event of  Default  should  occur  and be  continuing,  then  and in  every  such  case the
Indenture  Trustee shall, at the written  direction of the Holders of Notes  representing  not less than a majority
of the aggregate  Note Balance of the Notes,  declare the Notes to be immediately  due and payable,  by a notice in
writing to the Issuing  Entity (and to the Indenture  Trustee and the  Securities  Administrator  if such notice is
given by the Noteholders),  and upon any such declaration the unpaid aggregate Note Balance,  together with accrued
and unpaid interest thereon through the date of acceleration shall become immediately due and payable.

                  At any time after such  declaration  of  acceleration  of  maturity  with  respect to an Event of
Default  has been made and  before a  judgment  or decree for  payment  of the money due has been  obtained  by the
Securities  Administrator  as hereinafter in this Article V provided,  Holders of the Notes  representing  not less
than a majority  of the  aggregate  Note  Balance  of the  Notes,  by written  notice to the  Issuing  Entity,  the
Indenture  Trustee and the Securities  Administrator,  may waive the related Event of Default and rescind and annul
such declaration and its consequences if:

                           (i)      the Issuing Entity has paid or deposited with the  Securities  Administrator  a
                  sum (which sum shall come from  payments  received on the Mortgage  Loans)  sufficient to pay (a)
                  all payments of  principal of and interest on the Notes and all other  amounts that would then be
                  due  hereunder  or upon the Notes if the Event of Default  giving rise to such  acceleration  had
                  not  occurred;  and (b) all  sums  paid  or  advanced  by the  Securities  Administrator  and the
                  Indenture  Trustee  hereunder  and  the  reasonable  compensation,  expenses,  disbursements  and
                  advances of the Indenture  Trustee and the Securities  Administrator  and its  respective  agents
                  and counsel;  and

                           (ii)     all Events of Default,  other than the nonpayment of the principal of the Notes
                  that has  become  due  solely by such  acceleration,  have been  cured or waived as  provided  in
                  Section 5.12.

                  No such rescission shall affect any subsequent default or impair any right consequent thereto.

                  Section 5.03.     Collection of Indebtedness and Suits for Enforcement by Indenture Trustee.

                           (a)      The Issuing Entity  covenants that if (i) default is made in the payment of any
                  interest on any Note when the same becomes due and  payable,  and such  default  continues  for a
                  period  of  five  days,  or  (ii)  default  is made in the  payment  of the  principal  of or any
                  installment  of the  principal  of any Note when the same  becomes due and  payable,  the Issuing
                  Entity shall, upon demand of the Securities  Administrator,  at the direction of the Holders of a
                  majority of the aggregate  Note Balance of the Notes,  pay to the Securities  Administrator,  for
                  the  benefit of the  Holders of Notes,  the whole  amount  then due and  payable on the Notes for
                  principal and interest,  with interest at the  applicable  Note Rate upon the overdue  principal,
                  and in  addition  thereto  such  further  amount  as shall be  sufficient  to cover the costs and
                  expenses of  collection,  including the  reasonable  compensation,  expenses,  disbursements  and
                  advances of the Indenture  Trustee and the Securities  Administrator  and its  respective  agents
                  and counsel.

                           (b)      In case the Issuing  Entity shall fail  forthwith to pay such amounts upon such
                  demand,  the Indenture  Trustee,  in its own name and as trustee of an express trust,  subject to
                  the  provisions  of Section  10.16 hereof may  institute a Proceeding  for the  collection of the
                  sums so due and unpaid,  and may prosecute such  Proceeding to judgment or final decree,  and may
                  enforce the same  against the Issuing  Entity or other  obligor upon the Notes and collect in the
                  manner  provided by law out of the  property of the  Issuing  Entity or other  obligor the Notes,
                  wherever situated, the monies adjudged or decreed to be payable.

                           (c)      If an Event  of  Default  occurs  and is  continuing,  the  Indenture  Trustee,
                  subject to the provisions of Section 10.16 hereof may, as more  particularly  provided in Section
                  5.04 hereof,  in its discretion,  proceed to protect and enforce its rights and the rights of the
                  Noteholders,  by such  appropriate  Proceedings,  as directed in writing by Holders of a majority
                  of the aggregate Note Balance of the Notes,  to protect and enforce any such rights,  whether for
                  the  specific  enforcement  of any  covenant  or  agreement  in this  Indenture  or in aid of the
                  exercise  of any  power  granted  herein,  or to  enforce  any  other  proper  remedy or legal or
                  equitable right vested in the Indenture Trustee by this Indenture or by law.

                           (d)      In case there  shall be pending,  relative  to the Issuing  Entity or any other
                  obligor  upon the Notes or any Person  having or  claiming  an  ownership  interest  in the Trust
                  Estate,  Proceedings under Title 11 of the United States Code or any other applicable  federal or
                  state  bankruptcy,  insolvency or other  similar law, or in case a receiver,  assignee or trustee
                  in bankruptcy or  reorganization,  liquidator,  sequestrator or similar  official shall have been
                  appointed  for or taken  possession  of the Issuing  Entity or its property or such other obligor
                  or Person,  or in case of any other  comparable  judicial  Proceedings  relative  to the  Issuing
                  Entity or other  obligor upon the Notes,  or to the  creditors or property of the Issuing  Entity
                  or such other  obligor,  the Indenture  Trustee,  as directed in writing by Holders of a majority
                  of the aggregate  Note Balance of the Notes,  irrespective  of whether the principal of any Notes
                  shall  then  be due  and  payable  as  therein  expressed  or by  declaration  or  otherwise  and
                  irrespective  of  whether  the  Indenture  Trustee  shall have made any  demand  pursuant  to the
                  provisions  of  this  Section,  shall  be  entitled  and  empowered,   by  intervention  in  such
                  Proceedings or otherwise:

                           (i)      to file and prove a claim or  claims  for the whole  amount  of  principal  and
                  interest  owing and unpaid in respect of the Notes and to file such other  papers or documents as
                  may be necessary or advisable  in order to have the claims of the  Indenture  Trustee  (including
                  any claim for reasonable  compensation  to the Indenture  Trustee,  the Securities  Administrator
                  and each  predecessor  Indenture  Trustee  and  Securities  Administrator,  and their  respective
                  agents,  attorneys and counsel,  and for reimbursement of all expenses and liabilities  incurred,
                  and  all  advances  made,  by  the  Indenture  Trustee  and  Securities  Administrator  and  each
                  predecessor Indenture Trustee and Securities  Administrator,  except as a result of negligence or
                  bad faith) and of the Noteholders allowed in such Proceedings;

                           (ii)     unless  prohibited by applicable law and regulations,  to vote on behalf of the
                  Holders of Notes in any election of a trustee,  a standby  trustee or Person  performing  similar
                  functions in any such Proceedings;

                           (iii)    to direct the  Securities  Administrator  to collect  and receive any monies or
                  other property  payable or deliverable on any such claims and to distribute all amounts  received
                  with respect to the claims of the Noteholders and of the Indenture Trustee on their behalf; and

                           (iv)     to file such proofs of claim and other  papers or documents as may be necessary
                  or  advisable  in order to have the  claims of the  Indenture  Trustee  or the  Holders  of Notes
                  allowed in any  judicial  proceedings  relative  to the Issuing  Entity,  its  creditors  and its
                  property;  and any trustee,  receiver,  liquidator,  custodian or other  similar  official in any
                  such  Proceeding  is  hereby  authorized  by each of such  Noteholders  to make  payments  to the
                  Securities  Administrator  and,  in the event that the  Indenture  Trustee  shall  consent to the
                  making  of  payments  directly  to such  Noteholders,  to pay to the  Indenture  Trustee  and the
                  Securities  Administrator  such amounts as shall be sufficient to cover  reasonable  compensation
                  to the Indenture  Trustee and the Securities  Administrator,  each predecessor  Indenture Trustee
                  and Securities  Administrator and their respective agents,  attorneys and counsel,  and all other
                  expenses and  liabilities  incurred,  and all advances  made,  by the  Indenture  Trustee and the
                  Securities Administrator and each predecessor Indenture Trustee and Securities Administrator.

                           (e)      Nothing herein contained shall be deemed to authorize the Indenture  Trustee or
                  the  Securities  Administrator  to  authorize  or  consent  to or vote for or  accept or adopt on
                  behalf of any  Noteholder  any plan of  reorganization,  arrangement,  adjustment or  composition
                  affecting the Notes or the rights of any Holder  thereof or to authorize  the  Indenture  Trustee
                  or the  Securities  Administrator  to vote in respect of the claim of any  Noteholder in any such
                  proceeding  except, as aforesaid,  to vote for the election of a trustee in bankruptcy or similar
                  Person.

                           (f)      All rights of action and of  asserting  claims under this  Indenture,  or under
                  any of the Notes,  may be enforced by the Indenture  Trustee without the possession of any of the
                  Notes or the  production  thereof in any trial or other  Proceedings  relative  thereto,  and any
                  such action or proceedings  instituted by the Indenture  Trustee shall be brought in its own name
                  as trustee of an express  trust,  and any  recovery  of  judgment,  subject to the payment of the
                  expenses,   disbursements   and  compensation  of  the  Indenture   Trustee  and  the  Securities
                  Administrator,  each  predecessor  Indenture  Trustee  and  Securities  Administrator  and  their
                  respective  agents and attorneys,  shall be for the ratable  benefit of the Holders of the Notes,
                  subject to Section 5.05 hereof.

                           (g)      In any Proceedings  brought by the Indenture  Trustee (and also any Proceedings
                  involving the  interpretation  of any provision of this Indenture to which the Indenture  Trustee
                  shall be a party),  the  Indenture  Trustee  shall be held to  represent  all the  Holders of the
                  Notes, and it shall not be necessary to make any Noteholder a party to any such Proceedings.

                  Section 5.04.     Remedies; Priorities.

                           (a)      If an  Event  of  Default  shall  have  occurred  and be  continuing  and if an
                  acceleration has been declared and not rescinded  pursuant to Section 5.02 hereof,  the Indenture
                  Trustee  subject to the  provisions  of Section  10.16  hereof  may,  and shall,  at the  written
                  direction  of the Holders of a majority of the  aggregate  Note  Balance of the Notes,  do one or
                  more of the following (subject to Section 5.05 hereof):

                           (i)      institute  Proceedings  in its own name and as trustee of an express  trust for
                  the  collection  of all amounts  then payable on the Notes or under this  Indenture  with respect
                  thereto,  whether by declaration  or otherwise  enforce any judgment  obtained,  and collect from
                  the Issuing Entity and any other obligor upon such Notes monies adjudged due;

                           (ii)     institute   Proceedings   from  time  to  time  for  the  complete  or  partial
                  foreclosure of this Indenture with respect to the Trust Estate;

                           (iii)    exercise  any  remedies  of a  secured  party  under the UCC and take any other
                  appropriate  action to protect and enforce the rights and remedies of the  Indenture  Trustee and
                  the Holders of the Notes; and

                           (iv)     sell the Trust Estate or any portion thereof or rights or interest therein,  at
                  one or more  public or  private  sales  called and  conducted  in any  manner  permitted  by law;
                  provided,  however,  that the  Indenture  Trustee may not sell or otherwise  liquidate  the Trust
                  Estate  following an Event of Default,  unless (A) the Indenture  Trustee  obtains the consent of
                  the Holders of 100% of the  aggregate  Note  Balance of the Notes,  (B) the proceeds of such sale
                  or  liquidation  distributable  to the Holders of the Notes are  sufficient  to discharge in full
                  all amounts then due and unpaid upon such Notes for  principal  and interest or (C) the Indenture
                  Trustee  determines  that the Mortgage  Loans will not continue to provide  sufficient  funds for
                  the payment of principal of and  interest on the  applicable  Notes as they would have become due
                  if the Notes had not been  declared  due and  payable,  and the  Indenture  Trustee  obtains  the
                  consent of the Holders of a majority of the aggregate  Note Balance of the Notes.  In determining
                  such  sufficiency  or  insufficiency  with respect to clause (B) and (C), the  Indenture  Trustee
                  may,  but need not,  obtain and rely upon written  advice or an opinion  (obtained at the expense
                  of the Trust) of an Independent  investment banking or accounting firm of national  reputation as
                  to the  feasibility  of such proposed  action and as to the  sufficiency  of the Trust Estate for
                  such purpose.  Notwithstanding  the foregoing,  so long as a Servicer  Event of  Termination  has
                  not occurred,  any sale of the Trust Estate shall be made subject to the  continued  servicing of
                  the Mortgage Loans by the Servicer as provided in the Sale and Servicing Agreement.

                           (b)      If the  Indenture  Trustee  collects  any money or  property  pursuant  to this
                  Article V, the Indenture  Trustee shall forward such funds to the  Securities  Administrator  and
                  the Securities Administrator shall pay out the money or property in the following order:

                           (i)      to the Indenture Trustee, the Securities  Administrator,  Master Servicer,  the
                  Owner Trustee,  the Custodian and the Servicer for amounts due and not  previously  paid pursuant
                  to the Indenture (including Section 6.07 hereof) and the other Basic Documents;

                           (ii)     to the Swap  Provider,  any  remaining  Net Swap  Payment  or Swap  Termination
                  Payment (other than any Swap  Termination  Payment  resulting from a Swap Provider Trigger Event)
                  owed to the Swap Provider pursuant to the Interest Rate Swap Agreement;

                           (iii)    to the  Noteholders  for amounts due and unpaid on the Notes  (including  Class
                  Interest  Carryover  Shortfalls but not including any Basis Risk  Shortfall  Amount) with respect
                  to interest,  first,  concurrently,  to the Holders of each Class of Class A Notes, on a pro rata
                  basis  based on the  entitlement  of each such  Class,  second,  to the  Holders of the Class M-1
                  Notes,  third,  to the  Holders of the Class M-2 Notes,  fourth,  to the Holders of the Class M-3
                  Notes,  fifth,  to the  Holders of the Class M-4 Notes,  sixth,  to the  Holders of the Class M-5
                  Notes,  seventh,  to the Holders of the Class M-6 Notes,  eighth, to the Holders of the Class M-7
                  Notes  (allocated  among the Class M-7 Notes,  pro rata based on their respective Note Balances),
                  ninth,  to the  Holders of the Class M-8 Notes  (allocated  among the Class M-8  Notes,  pro rata
                  based on their  respective  Note  Balances),  tenth,  to the  Holders  of the Class M-9 Notes and
                  eleventh,  to the  Holders of the Class M-10 Notes  according  to the  amounts due and payable on
                  the Notes for interest;

                           (iv)     to the  Noteholders  for  amounts  due and unpaid on the Notes with  respect to
                  principal,  first,  concurrently,  to the  Holders of each Class of Class A Notes,  on a pro rata
                  basis  based on the Note  Balance of each such  Class,  second,  to the  Holders of the Class M-1
                  Notes,  third,  to the  Holders of the Class M-2 Notes,  fourth,  to the Holders of the Class M-3
                  Notes,  fifth,  to the  Holders of the Class M-4 Notes,  sixth,  to the  Holders of the Class M-5
                  Notes,  seventh,  to the Holders of the Class M-6 Notes,  eighth, to the Holders of the Class M-7
                  Notes  (allocated  among the Class M-7 Notes,  pro rata based on their respective Note Balances),
                  ninth,  to the  Holders of the Class M-8 Notes  (allocated  among the Class M-8  Notes,  pro rata
                  based on their  respective  Note  Balances),  tenth,  to the  Holders  of the Class M-9 Notes and
                  eleventh,  to the  Holders of the Class M-10 Notes  according  to the  amounts due and payable on
                  the Notes for interest  according to the amounts due and payable on such Notes for principal,  in
                  each case, until the Note Balance of each such Class is reduced to zero;

                           (v)      to the  Noteholders  for the  amount of any  related  Allocated  Realized  Loss
                  Amount  not  previously  paid,  first,  to the  Holders of the Class M-1  Notes,  second,  to the
                  Holders of the Class M-2 Notes,  third,  to the  Holders of the Class M-3 Notes,  fourth,  to the
                  Holders of the Class M-4 Notes,  fifth,  to the  Holders  of the Class M-5 Notes,  sixth,  to the
                  Holders of the Class M-6 Notes,  seventh,  to the Holders of the Class M-7 Notes (allocated among
                  the Class M-7 Notes,  pro rata based on their  respective Note  Balances),  ninth, to the Holders
                  of the Class M-8 Notes  (allocated  among the Class M-8 Notes, pro rata based on their respective
                  Note  Balances),  ninth,  to the Holders of the Class M-9 Notes and tenth,  to the Holders of the
                  Class M-10 Notes;

                           (vi)     to the  Noteholders for amounts due and unpaid on the Notes with respect to any
                  related Basis Risk Shortfall Amount, first,  concurrently,  to the Holders of each Class of Class
                  A Notes,  on a pro rata basis  based on the Basis  Risk  Shortfall  Amount  for each such  Class,
                  second,  to the  Holders of the Class M-1 Notes,  third,  to the  Holders of the Class M-2 Notes,
                  fourth,  to the  Holders of the Class M-3 Notes,  fifth,  to the  Holders of the Class M-4 Notes,
                  sixth,  to the  Holders of the Class M-5 Notes,  seventh,  to the Holders of the Class M-6 Notes,
                  eighth,  to the  Holders of the Class M-7 Notes  (allocated  among the Class M-7 Notes,  pro rata
                  based  on their  respective  Note  Balances),  ninth,  to the  Holders  of the  Class  M-8  Notes
                  (allocated among the Class M-8 Notes,  pro rata based on their respective Note Balances),  tenth,
                  to the Holders of the Class M-9 Notes and eleventh, to the Holders of the Class M-10 Notes;

                           (vii)    to the Swap Provider,  any remaining Swap Termination  Payment resulting from a
                  Swap Provider Trigger Event; and

                           (viii)   to the payment of the  remainder,  if any to the  Certificate  Paying  Agent on
                  behalf of the Issuing Entity or to any other person legally entitled thereto.

                  The  Securities  Administrator  may fix a  record  date  and  Payment  Date  for any  payment  to
Noteholders   pursuant  to  this  Section  5.04.  At  least  15  days  before  such  record  date,  the  Securities
Administrator  shall mail to each  Noteholder a notice that states the record date, the Payment Date and the amount
to be paid.

                  Section 5.05.     Optional Preservation of the Trust Estate.

                  If the Notes have been declared to be due and payable  under  Section 5.02  following an Event of
Default and such declaration and its consequences  have not been rescinded and annulled,  the Indenture Trustee may
elect to take and  maintain  possession  of the Trust  Estate.  It is the  desire  of the  parties  hereto  and the
Noteholders  that there be at all times  sufficient funds for the payment of principal of and interest on the Notes
and other  obligations of the Issuing Entity,  the Indenture  Trustee and the Securities  Administrator  shall take
such desire into account when determining  whether or not to take and maintain  possession of the Trust Estate.  In
determining  whether and how to take and maintain  possession of the Trust Estate,  the Indenture  Trustee may, but
need  not,  obtain  and rely  upon the  written  advice or an  opinion  of an  Independent  investment  banking  or
accounting  firm of national  reputation as to the feasibility of such proposed action and as to the sufficiency of
the Trust Estate for such purpose.

                  Section 5.06.     Limitation of Suits.

                  No Holder of any Note shall have any right to institute  any  Proceeding,  judicial or otherwise,
with  respect  to this  Indenture,  or for the  appointment  of a  receiver  or  trustee,  or for any other  remedy
hereunder, unless and subject to the provisions of Section 10.16 hereof

                           (i)      such Holder has previously  given written notice to the Indenture  Trustee of a
                  continuing Event of Default;

                           (ii)     the  Holders of not less than 25% of the  aggregate  Note  Balance of the Notes
                  have made a written  request to the Indenture  Trustee to institute such Proceeding in respect of
                  such Event of Default in its own name as Indenture Trustee hereunder;

                           (iii)    such  Holder  or  Holders  have  offered  to the  Indenture  Trustee  indemnity
                  reasonably  satisfactory  to it against the costs,  expenses  and  liabilities  to be incurred in
                  complying with such request;

                           (iv)     the  Indenture  Trustee for 60 days after its receipt of such notice of request
                  and offer of indemnity has failed to institute such Proceedings; and

                           (v)      no  direction  inconsistent  with such  written  request  has been given to the
                  Indenture  Trustee  during such 60-day period by the Holders of a majority of the aggregate  Note
                  Balance of the Notes.

                  It is  understood  and intended  that no one or more Holders of Notes shall have any right in any
manner  whatever by virtue of, or by availing of, any provision of this  Indenture to affect,  disturb or prejudice
the rights of any other Holders of Notes or to obtain or to seek to obtain  priority or  preference  over any other
Holders or to enforce any right under this Indenture, except in the manner herein provided.

                  Section 5.07.     Unconditional Rights of Noteholders To Receive Principal and Interest.

                  Notwithstanding  any other  provisions in this  Indenture,  the Holder of any Note shall have the
right,  which is absolute and unconditional,  to receive payment of the principal of and interest,  if any, on such
Note on or after the  respective  due dates  thereof  expressed in such Note or in this  Indenture and to institute
suit for the  enforcement  of any such  payment,  and such right shall not be impaired  without the consent of such
Holder.

                  Section 5.08.     Restoration of Rights and Remedies.

                  If the Indenture  Trustee or any  Noteholder  has  instituted any Proceeding to enforce any right
or remedy under this Indenture and such  Proceeding has been  discontinued  or abandoned for any reason or has been
determined  adversely  to the  Indenture  Trustee or to such  Noteholder,  then and in every such case the  Issuing
Entity,  the Indenture  Trustee and the Noteholders  shall,  subject to any  determination in such  Proceeding,  be
restored  severally and  respectively to their former positions  hereunder,  and thereafter all rights and remedies
of the Indenture Trustee and the Noteholders shall continue as though no such Proceeding had been instituted.

                  Section 5.09.     Rights and Remedies Cumulative.

                  No right or remedy herein  conferred  upon or reserved to the Indenture  Trustee,  the Securities
Administrator  or to the Noteholders is intended to be exclusive of any other right or remedy,  and every right and
remedy shall,  to the extent  permitted by law, be cumulative and in addition to every other right and remedy given
hereunder  or now or hereafter  existing at law or in equity or  otherwise.  The  assertion  or  employment  of any
right or remedy  hereunder,  or otherwise,  shall not prevent the  concurrent  assertion or employment of any other
appropriate right or remedy.

                  Section 5.10.     Delay or Omission Not a Waiver.

                  No delay or omission  of the  Indenture  Trustee or any Holder of any Note to exercise  any right
or remedy  accruing  upon any Event of Default  shall impair any such right or remedy or constitute a waiver of any
such Event of Default or an  acquiescence  therein.  Every  right and remedy  given by this  Article V or by law to
the  Indenture  Trustee or to the  Noteholders  may be exercised  from time to time,  and as often as may be deemed
expedient, by the Indenture Trustee or by the Noteholders, as the case may be.

                  Section 5.11.     Control By Noteholders.

                  The Holders of a majority of the  aggregate  Note Balance of Notes shall have the right to direct
the time,  method and place of conducting  any Proceeding  for any remedy  available to the Indenture  Trustee with
respect to the Notes or exercising any trust or power conferred on the Indenture Trustee; provided that:

                           (i)      such  direction  shall  not be in  conflict  with any rule of law or with  this
                  Indenture;

                           (ii)     any  direction to the  Indenture  Trustee to sell or liquidate the Trust Estate
                  shall be by Holders of Notes  representing  not less than 100% of the  aggregate  Note Balance of
                  the Notes;

                           (iii)    the Indenture Trustee has been provided with indemnity satisfactory to it; and

                           (iv)     the Indenture  Trustee may take any other action deemed proper by the Indenture
                  Trustee  that is not  inconsistent  with such  direction of the Holders of Notes  representing  a
                  majority of the aggregate Note Balance of the Notes.

                  Notwithstanding  the rights of Noteholders  set forth in this Section 5.11 the Indenture  Trustee
need not take any action that it determines might involve it in liability.

                  Section 5.12.     Waiver of Past Defaults.

                  Prior to the  declaration  of the  acceleration  of the  maturity  of the  Notes as  provided  in
Section 5.02 hereof,  the Holders of Notes  representing  not less than a majority of the aggregate Note Balance of
the Notes may waive any past Event of Default and its  consequences  except an Event of Default (a) with respect to
payment of principal  of or interest on any of the Notes or (b) in respect of a covenant or provision  hereof which
cannot be modified  or amended  without  the  consent of the Holder of each Note.  In the case of any such  waiver,
the Issuing  Entity,  the Indenture  Trustee,  the Securities  Administrator  and the Holders of the Notes shall be
restored to their  former  positions  and rights  hereunder,  respectively,  but no such waiver shall extend to any
subsequent or other Event of Default or impair any right consequent thereto.

                  Upon any such waiver,  any Event of Default arising  therefrom shall be deemed to have been cured
and not to have occurred,  for every purpose of this  Indenture;  but no such waiver shall extend to any subsequent
or other Event of Default or impair any right consequent thereto.

                  Section 5.13.     Undertaking for Costs.

                  All parties to this Indenture  agree,  and each Holder of any Note and each  Beneficial  Owner of
any interest  therein by such Holder's or  Beneficial  Owner's  acceptance  thereof shall be deemed to have agreed,
that any court may in its  discretion  require,  in any suit for the  enforcement of any right or remedy under this
Indenture,  or in any suit against the  Indenture  Trustee or the  Securities  Administrator  for any action taken,
suffered or omitted by it as Indenture  Trustee or Securities  Administrator,  the filing by any party  litigant in
such  suit of an  undertaking  to pay the costs of such  suit,  and that such  court may in its  discretion  assess
reasonable  costs,  including  reasonable  attorneys'  fees,  against any party  litigant in such suit,  having due
regard to the merits and good faith of the claims or defenses made by such party  litigant;  but the  provisions of
this  Section  5.13  shall  not  apply  to (a) any suit  instituted  by the  Indenture  Trustee  or the  Securities
Administrator,  (b) any suit instituted by any Noteholder, or group of Noteholders,  in each case holding more than
10% of the aggregate Note Balance of the Notes or (c) any suit  instituted by any  Noteholder  for the  enforcement
of the payment of  principal  of or interest on any Note on or after the  respective  due dates  expressed  in such
Note and in this Indenture.

                  Section 5.14.     Waiver of Stay or Extension Laws.

                  The Issuing  Entity  covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon,  or plead or in any manner  whatsoever,  claim or take the benefit or  advantage  of, any stay or
extension  law  wherever  enacted,  now or at any time  hereafter  in force,  that may affect the  covenants or the
performance of this Indenture;  and the Issuing Entity (to the extent that it may lawfully do so) hereby  expressly
waives all benefit or  advantage  of any such law,  and  covenants  that it shall not  hinder,  delay or impede the
execution of any power herein  granted to the Indenture  Trustee or the Securities  Administrator,  but will suffer
and permit the execution of every such power as though no such law had been enacted.

                  Section 5.15.     Sale of Trust Estate.

                           (a)      The power to effect any sale or other  disposition (a "Sale") of any portion of
                  the Trust  Estate  pursuant to Section  5.04 hereof is  expressly  subject to the  provisions  of
                  Section  5.05  hereof  and this  Section  5.15.  The power to effect  any such Sale  shall not be
                  exhausted by any one or more Sales as to any portion of the Trust Estate  remaining  unsold,  but
                  shall  continue  unimpaired  until the entire  Trust  Estate  shall have been sold or all amounts
                  payable on the Notes and under this  Indenture  shall have been paid.  The Indenture  Trustee may
                  from time to time postpone any public Sale by public  announcement  made at the time and place of
                  such Sale.  The Indenture  Trustee hereby  expressly  waives its right to any amount fixed by law
                  as compensation for any Sale.

                           (b)      The Indenture  Trustee shall not in any private Sale sell the Trust Estate,  or
                  any portion thereof, unless:

                           (i)      the Holders of all Notes  consent to or direct the  Indenture  Trustee to make,
                  such Sale, or

                           (ii)     the proceeds of such Sale would be not less than the entire  amount which would
                  be payable to the  Noteholders  under the  Notes,  in full  payment  thereof in  accordance  with
                  Section 5.02 hereof, on the Payment Date next succeeding the date of such Sale, or

                           (iii)    the  Indenture  Trustee  determines  that the  conditions  for retention of the
                  Trust Estate set forth in Section 5.05 hereof  cannot be satisfied  (in making any  determination
                  under this Section 5.15,  the Indenture  Trustee may rely upon written advice or an opinion of an
                  Independent  investment  banking firm obtained and delivered as provided in Section 5.05 hereof),
                  the  Holders of Notes  representing  at least  100% of the  aggregate  Note  Balance of the Notes
                  consent to such Sale.

                  The  purchase by the  Indenture  Trustee of all or any  portion of the Trust  Estate at a private
Sale shall not be deemed a Sale or other disposition thereof for purposes of this Section 5.15(b).

                           (c)      [Reserved].

                           (d)      In connection with a Sale of all or any portion of the Trust Estate,

                           (i)      any Holder or Holders of Notes may bid for and purchase  the  property  offered
                  for sale,  and upon  compliance  with the terms of sale may hold,  retain and possess and dispose
                  of such  property,  without  further  accountability,  and may,  in  paying  the  purchase  money
                  therefor,  deliver  any Notes or claims  for  interest  thereon  in lieu of cash up to the amount
                  which shall,  upon  distribution of the net proceeds of such sale, be payable  thereon,  and such
                  Notes,  in case the amounts so payable  thereon shall be less than the amount due thereon,  shall
                  be  returned to the  Holders  thereof  after  being  appropriately  stamped to show such  partial
                  payment;

                           (ii)     the Indenture  Trustee,  may bid for and acquire the property  offered for Sale
                  in  connection  with any Sale thereof,  and,  subject to any  requirements  of, and to the extent
                  permitted  by,  applicable  law in connection  therewith,  may purchase all or any portion of the
                  Trust Estate in a private sale,  and, in lieu of paying cash  therefor,  may make  settlement for
                  the  purchase  price by  crediting  the gross Sale price  against the sum of (A) the amount which
                  would be payable to the Holders of the Notes and  Holders of  Certificates  on the  Payment  Date
                  next  succeeding  the date of such Sale and (B) the  expenses of the Sale and of any  Proceedings
                  in connection  therewith  which are  reimbursable  to it,  without being  required to produce the
                  Notes in order  to  complete  any such  Sale or in order  for the net Sale  price to be  credited
                  against  such Notes,  and any  property so acquired by the  Indenture  Trustee  shall be held and
                  dealt with by it in accordance with the provisions of this Indenture;

                           (iii)    the Indenture  Trustee shall execute and deliver an  appropriate  instrument of
                  conveyance,   prepared  by  the  Issuing  Entity  and  satisfactory  to  the  Indenture  Trustee,
                  transferring its interest in any portion of the Trust Estate in connection with a Sale thereof;

                           (iv)     the  Indenture   Trustee  is  hereby   irrevocably   appointed  the  agent  and
                  attorney-in-fact  of the  Issuing  Entity to transfer  and convey its  interest in any portion of
                  the Trust Estate in connection  with a Sale thereof,  and to take all action  necessary to effect
                  such Sale; and

                           (v)      no  purchaser  or  transferee  at such a Sale shall be bound to  ascertain  the
                  Indenture Trustee's  authority,  inquire into the satisfaction of any conditions precedent or see
                  to the application of any monies.

                  Section 5.16.     Action on Notes.

                  The Indenture  Trustee's right to seek and recover  judgment on the Notes or under this Indenture
shall not be affected by the seeking,  obtaining or  application  of any other relief under or with respect to this
Indenture.  Neither  the lien of this  Indenture  nor any  rights  or  remedies  of the  Indenture  Trustee  or the
Noteholders  shall be impaired by the recovery of any judgment by the Indenture  Trustee against the Issuing Entity
or by the levy of any  execution  under  such  judgment  upon any  portion  of the Trust  Estate or upon any of the
assets of the  Issuing  Entity.  Any  money or  property  collected  by the  Indenture  Trustee  or the  Securities
Administrator shall be applied by the Securities Administrator in accordance with Section 5.04(b) hereof.

                  Section 5.17.     Performance and Enforcement of Certain Obligations.

                           (a)      Promptly  following a request from the Indenture  Trustee to do so, the Issuing
                  Entity in its  capacity as holder of the  Mortgage  Loans,  shall take all such lawful  action as
                  the  Indenture  Trustee  may  request  to cause the  Issuing  Entity  to  compel  or  secure  the
                  performance and observance by the Seller,  the Originator,  the Master Servicer and the Servicer,
                  as applicable,  of each of their  obligations  to the Issuing Entity under or in connection  with
                  the Assignment  Agreement,  the Purchase Agreement and the Sale and Servicing  Agreement,  and to
                  exercise any and all rights,  remedies,  powers and privileges  lawfully available to the Issuing
                  Entity under or in  connection  with the  Assignment  Agreement,  the Purchase  Agreement and the
                  Sale and Servicing  Agreement to the extent and in the manner directed by the Indenture  Trustee,
                  as pledgee of the Mortgage  Loans,  including the  transmission of notices of default on the part
                  of  the  Seller,  the  Originator,  the  Master  Servicer  or the  Servicer  thereunder  and  the
                  institution of legal or  administrative  actions or  proceedings to compel or secure  performance
                  by the Seller,  the Originator,  the Master Servicer or the Servicer of each of their obligations
                  under the Assignment Agreement and the Sale and Servicing Agreement.

                           (b)      The  Indenture  Trustee,  as pledgee of the  Mortgage  Loans,  may,  and at the
                  direction  (which  direction shall be in writing or by telephone  (confirmed in writing  promptly
                  thereafter))  of the  Holders of  66-2/3%  of the  aggregate  Note  Balance  of the Notes,  shall
                  exercise all rights,  remedies,  powers,  privileges and claims of the Issuing Entity against the
                  Seller,  the  Originator,  the Master  Servicer or the Servicer  under or in connection  with the
                  Assignment  Agreement,  the Purchase  Agreement and the Sale and Servicing  Agreement,  including
                  the  right or power to take any  action to compel or  secure  performance  or  observance  by the
                  Seller,  the  Originator,  the Master  Servicer or the  Servicer,  as the case may be, of each of
                  their  obligations to the Issuing Entity  thereunder  and to give any consent,  request,  notice,
                  direction,  approval,  extension or waiver under the Assignment Agreement, the Purchase Agreement
                  and the Sale and  Servicing  Agreement,  as the case may be, and any right of the Issuing  Entity
                  to take such action shall not be suspended.

                                                    ARTICLE VI

                              THE INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR

                  Section 6.01.     Duties of Indenture Trustee and Securities Administrator.

         (a)               If an Event of Default has occurred and is  continuing,  each of the  Indenture  Trustee
and the  Securities  Administrator  shall exercise the rights and powers vested in it by this Indenture and use the
same degree of care and skill in their exercise as a prudent  person would exercise or use under the  circumstances
in the conduct of such person's own affairs.

         (b)               Except during the continuance of an Event of Default:

                           (i)      each of the Indenture  Trustee and the Securities  Administrator  undertakes to
                  perform such duties and only such duties as are  specifically  set forth in this Indenture and no
                  implied  covenants  or  obligations  shall be read  into this  Indenture  against  the  Indenture
                  Trustee or the Securities Administrator; and

                           (ii)     in the absence of bad faith on its part, each of the Indenture  Trustee and the
                  Securities  Administrator  may  conclusively  rely,  as to the  truth of the  statements  and the
                  correctness of the opinions  expressed  therein,  upon certificates or opinions  furnished to the
                  Indenture  Trustee or the Securities  Administrator  and conforming to the  requirements  of this
                  Indenture;  however,  each of the  Indenture  Trustee  and  the  Securities  Administrator  shall
                  examine the certificates  and opinions to determine  whether or not they conform on their face to
                  the requirements of this Indenture.

         (c)               Neither the  Indenture  Trustee nor the  Securities  Administrator  may be relieved from
liability for its own negligent  action,  its own negligent  failure to act or its own willful  misconduct,  except
that:

                           (i)      this paragraph does not limit the effect of paragraph (b) of this Section 6.01;

                           (ii)     neither the Indenture Trustee nor the Securities  Administrator shall be liable
                  for any error of judgment  made in good faith by a Responsible  Officer  unless it is proved that
                  the  Indenture  Trustee  or  the  Securities  Administrator,  as  applicable,  was  negligent  in
                  ascertaining the pertinent facts; and

                           (iii)    neither the Indenture Trustee nor the Securities  Administrator shall be liable
                  with  respect  to any  action  it  takes or omits  to take in good  faith  in  accordance  with a
                  direction  received by it from  Noteholders or from the Issuing  Entity,  which they are entitled
                  to give under the Basic Documents.

         (d)               Neither the  Indenture  Trustee  nor the  Securities  Administrator  shall be liable for
interest on any money received by it.

                           (e)      Money held in trust by the Indenture  Trustee or the  Securities  Administrator
                  need not be segregated  from other trust funds except to the extent  required by law or the terms
                  of this Indenture or the Trust Agreement.

                           (f)      No provision  of this  Indenture  shall  require the  Indenture  Trustee or the
                  Securities  Administrator to expend or risk its own funds or otherwise incur financial  liability
                  in the  performance  of any of its duties  hereunder  or in the  exercise of any of its rights or
                  powers,  if it  shall  have  reasonable  grounds  to  believe  that  repayment  of such  funds or
                  indemnity satisfactory to it against such risk or liability is not reasonably assured to it.

                           (g)      Every  provision of this  Indenture  relating to the conduct or  affecting  the
                  liability of or affording  protection to the Indenture  Trustee and the Securities  Administrator
                  shall be subject to the provisions of this Section and to the provisions of the TIA.

                           (h)      The Indenture  Trustee  shall act in  accordance  with Section 6.07 of the Sale
                  and  Servicing  Agreement  and  shall  act as  successor  to the  Master  Servicer  or  appoint a
                  successor Master Servicer in accordance with Section 6.07 of the Sale and Servicing Agreement.

                           (i)      In order to comply with the U.S.A.  Patriot Act, the  Securities  Administrator
                  shall obtain and verify certain  information  and  documentation  from the other parties  hereto,
                  including but not limited to, such party's name, address and other identifying information.

                           (j)      The  Securities  Administrator  agrees to notify  the Master  Servicer  on each
                  Servicer  Remittance Date of the aggregate  dollar amount of the funds received by the Securities
                  Administrator  from the  Servicer  on such  Servicer  Remittance  Date and any other  information
                  reasonably  requested  by the Master  Servicer,  so as to enable the Master  Servicer to make the
                  reconciliations  and  verifications  required to be made by it  pursuant  to Section  4.01 of the
                  Sale and Servicing Agreement.

         (j)      (i) In the  event  that the Swap  Provider  fails to  perform  any of its  obligations  under the
Interest  Rate Swap  Agreement  (including,  without  limitation,  its  obligation  to make any payment or transfer
collateral),  or breaches any of its representations and warranties  thereunder,  or in the event that any Event of
Default,  Termination Event, or Additional  Termination Event (each as defined in the Interest Rate Swap Agreement)
occurs with respect to the Interest Rate Swap Agreement,  the Securities  Administrator  shall,  promptly following
actual  notice of such  failure,  breach or event,  notify the Depositor and send any notices and make any demands,
on behalf of the Issuing  Entity,  as required  under the Interest Rate Swap Agreement to enforce the rights of the
Issuing Entity under the Interest Rate Swap Agreement.

In the event that the Swap  Provider's  obligations  are  guaranteed by a third party under a guaranty  relating to
the Interest Rate Swap  Agreement  (such guaranty the "Swap  Guaranty" and such third party the "Swap  Guarantor"),
then to the extent  that the Swap  Provider  fails to make any  payment by the close of  business  on the day it is
required to make payment under the terms of the Interest Rate Swap Agreement,  the Securities  Administrator shall,
promptly  following  actual notice of the Swap  Provider's  failure to pay, demand that the Swap Guarantor make any
and all payments then required to be made by the Swap  Guarantor  pursuant to such Swap  Guaranty;  provided,  that
the Securities  Administrator  shall in no event be liable for any failure or delay in the  performance by the Swap
Provider or any Swap  Guarantor of its  obligations  hereunder or pursuant to the Interest Rate Swap  Agreement and
the  Swap  Guaranty,  nor for any  special,  indirect  or  consequential  loss or  damage  of any  kind  whatsoever
(including but not limited to lost profits) in connection therewith.

                  (ii) In the  event  that the Cap  Provider  fails to  perform  any of its  obligations  under the
Interest  Rate Cap  Agreement  (including,  without  limitation,  its  obligation  to make any  payment or transfer
collateral),  or breaches any of its representations and warranties  thereunder,  or in the event that any Event of
Default,  Termination  Event, or Additional  Termination Event (each as defined in the Interest Rate Cap Agreement)
occurs with respect to the Interest Rate Cap Agreement,  the Securities  Administrator  shall,  promptly  following
actual  notice of such  failure,  breach or event,  notify the Depositor and send any notices and make any demands,
on behalf of the Issuing  Entity,  as required  under the Interest  Rate Cap Agreement to enforce the rights of the
Issuing Entity under the Interest Rate Cap Agreement.

                  In the  event  that the Cap  Provider's  obligations  are  guaranteed  by a third  party  under a
guaranty  relating to the Interest Rate Cap Agreement  (such  guaranty the "Cap  Guaranty" and such third party the
"Cap  Guarantor"),  then to the extent that the Cap Provider  fails to make any payment by the close of business on
the day it is  required  to make  payment  under the  terms of the  Interest  Rate Cap  Agreement,  the  Securities
Administrator  shall,  promptly  following actual notice of the Cap Provider's  failure to pay, demand that the Cap
Guarantor  make any and all payments then  required to be made by the Cap Guarantor  pursuant to such Cap Guaranty;
provided,  that  the  Securities  Administrator  shall  in no  event  be  liable  for any  failure  or delay in the
performance  by the Cap  Provider or any Cap  Guarantor  of its  obligations  hereunder or pursuant to the Interest
Rate Cap Agreement  and the Cap  Guaranty,  nor for any special,  indirect or  consequential  loss or damage of any
kind whatsoever (including but not limited to lost profits) in connection  therewith.Please  modify Section 6.01 as
follows:

                  (iii) Upon an early  termination  of the Interest  Rate Swap  Agreement  other than in connection
with the optional  redemption  of the Notes,  the  Securities  Administrator,  at the direction and guidance of the
Majority  Certificateholder  of the Owner Trust  Certificates,  will use reasonable  efforts to appoint a successor
swap  provider to enter into a new  interest  rate swap  agreement on terms  substantially  similar to the Interest
Rate Swap  Agreement,  with a successor  swap provider  meeting all  applicable  eligibility  requirements.  If the
Securities  Administrator  receives a  termination  payment from the Swap  Provider in  connection  with such early
termination,  the Securities  Administrator will apply such termination  payment to any upfront payment required to
appoint the successor swap provider.  If the Securities  Administrator is required to pay a termination  payment to
the Swap Provider in connection with such early  termination,  the Securities  Administrator will apply any upfront
payment received from the successor swap provider to pay such termination payment.

                  If the Securities  Administrator  is unable to appoint a successor  swap provider  within 30 days
of the early termination,  then the Securities  Administrator (acting on behalf of the Issuing Entity) will deposit
any  termination  payment  received from the original Swap Provider into a separate,  non-interest  bearing reserve
account and will,  on each  subsequent  Payment Date,  withdraw  from the amount then  remaining on deposit in such
reserve  account an amount equal to the Net Swap Payment,  if any, that would have been paid to the Issuing  Entity
by the  original  Swap  Provider  calculated  in  accordance  with the  terms of the  original  Interest  Rate Swap
Agreement, and distribute such amount in accordance with the terms of Section 3.04 hereof.

                  Upon an early  termination  of the Interest Rate Swap  Agreement in connection  with the optional
redemption of the Notes,  if the Securities  Administrator  receives a termination  payment from the Swap Provider,
such termination payment will be distributed in accordance with Section 3.05 hereof.

                  (iv) Upon an early  termination of the Interest Rate Cap Agreement  other than in connection with
the optional redemption of the Notes, the Securities  Administrator,  at the direction and guidance of the Majority
Certificateholder  of the Owner  Trust  Certificates,  will use  reasonable  efforts  to  appoint a  successor  cap
provider to enter into a new interest  rate cap agreement on terms  substantially  similar to the Interest Rate Cap
Agreement,  with a  successor  cap  provider  meeting  all  applicable  eligibility  requirements.  The  Securities
Administrator  will apply any termination  payment  received from the original Cap Provider in connection with such
early termination to the upfront payment required to appoint the successor cap provider.

                  If the Securities  Administrator  is unable to appoint a successor cap provider within 30 days of
the early  termination,  then the Securities  Administrator  (acting on behalf of the Issuing  Entity) will deposit
any  termination  payment  received from the original Cap Provider into a separate,  non-interest  bearing  reserve
account and will,  on each  subsequent  Payment Date,  withdraw  from the amount then  remaining on deposit in such
reserve  account an amount equal to the Cap  Payment,  if any,  that would have been paid to the Issuing  Entity by
the original Cap Provider  calculated in  accordance  with the terms of the original  Interest Rate Cap  Agreement,
and distribute such amount in accordance with the terms of Section 3.05 hereof.

                  Upon an early  termination  of the Interest Rate Cap  Agreement in  connection  with the optional
redemption of the Notes,  if the  Securities  Administrator  receives a termination  payment from the Cap Provider,
such termination payment will be distributed in accordance with Section 3.05 hereof.

                  Section 6.02.     Rights of Indenture Trustee and Securities Administrator.

                  (a)      Each of the Indenture  Trustee and the Securities  Administrator  may conclusively  rely
on, and shall be fully  protected  from acting or refraining  from acting upon,  any document  believed by it to be
genuine  and to have been  signed or  presented  by the  proper  person.  Neither  the  Indenture  Trustee  nor the
Securities Administrator need investigate any fact or matter stated in the document.

                           (b)      Before the Indenture Trustee or the Securities  Administrator  acts or refrains
                  from  acting,  it may require an  Officer's  Certificate  or an Opinion of  Counsel.  Neither the
                  Indenture  Trustee nor the  Securities  Administrator  shall be liable for any action it takes or
                  omits to take in good faith in reliance on and in  accordance  with an Officer's  Certificate  or
                  Opinion of Counsel.

                           (c)      Neither the Indenture Trustee nor the Securities  Administrator shall be liable
                  for any action it takes or omits to take in good faith  which it  believes  to be  authorized  or
                  within its rights or powers;  provided,  however,  that the Indenture Trustee's or the Securities
                  Administrator's conduct does not constitute willful misconduct, negligence or bad faith.

                           (d)      Each of the  Indenture  Trustee and the  Securities  Administrator  may consult
                  with  counsel,  and the advice or Opinion of Counsel  with respect to legal  matters  relating to
                  the Basic  Documents and the Notes shall be full and complete  authorization  and protection from
                  liability in respect to any action  taken,  omitted or suffered by it hereunder or in  connection
                  herewith in good faith and in accordance with the advice or opinion of such counsel.

                           (e)      Each of the Indenture Trustee and the Securities  Administrator may execute any
                  of the trusts or powers  hereunder  or perform  any duties  hereunder,  either  directly or by or
                  through  agents,  attorneys,  custodians or nominees  appointed  with due care,  and shall not be
                  responsible  for any  willful  misconduct  or  negligence  on the  part of any  agent,  attorney,
                  custodian or nominee so appointed.

                           (f)      In no event shall the Indenture Trustee be liable, directly or indirectly,  for
                  any special,  indirect or consequential  damages,  even if the Indenture Trustee has been advised
                  of the possibility of such damages.

                           (g)      Any  permissive  right of the Indenture  Trustee  enumerated in this  Indenture
                  shall not be construed as a duty.

                           (h)      The  Securities  Administrator  shall be  entitled  to all of the same  rights,
                  protections, immunities and indemnities of the Indenture Trustee set forth herein.

                  Section 6.03.     Individual Rights of Indenture Trustee and Securities Administrator.

                  The Indenture  Trustee or the  Securities  Administrator  in its individual or any other capacity
may become the owner or pledgee of Notes and may  otherwise  deal with the Issuing  Entity or its  Affiliates  with
the same rights it would have if it were not Indenture  Trustee or the  Securities  Administrator,  as  applicable,
subject to the  requirements of the Trust  Indenture Act. Any Note  Registrar,  co-registrar or co-paying agent may
do the same with like  rights.  However,  each of the  Indenture  Trustee  and the  Securities  Administrator  must
comply with Sections 6.11 and 6.12 hereof.

                  Section 6.04.     Indenture Trustee's and Securities Administrator's Disclaimer.

                  Neither the Indenture  Trustee nor the  Securities  Administrator  shall be  responsible  for and
makes no  representation  as to the validity or adequacy of this Indenture,  the Notes or any other Basic Document,
it shall not be  accountable  for the Issuing  Entity's  use of the  proceeds  from the Notes,  and it shall not be
responsible  for any statement of the Issuing Entity in the Indenture or in any document  issued in connection with
the sale of the Notes or in the Notes other than the Securities Administrator's certificate of authentication.

                  Section 6.05.     Notice of Event of Default.

                  Subject to Section 5.01,  the Indenture  Trustee or the Securities  Administrator  shall promptly
mail to each Noteholder  notice of the Event of Default after it is actually known to a Responsible  Officer of the
Indenture  Trustee or the Securities  Administrator,  unless such Event of Default shall have been waived or cured.
Except in the case of an Event of Default in  payment  of  principal  of or  interest  on any Note,  the  Indenture
Trustee or the  Securities  Administrator  may  withhold  the notice if and so long as it in good faith  determines
that withholding the notice is in the interests of Noteholders.

                  Section 6.06.     Reports by the Securities Administrator to Holders and Tax Administration.

                  The  Securities  Administrator  shall  deliver  to each  Noteholder  such  information  as may be
required by the Internal  Revenue  Service or by federal or state law or rules or regulations to enable such holder
to prepare its federal and state  income tax  returns.  The  Securities  Administrator  shall  prepare and file (or
cause to be prepared and filed),  on behalf of the Owner  Trustee or the Issuing  Entity,  all tax returns (if any)
and  information  reports,  tax elections  and such annual or other reports of the Issuing  Entity as are necessary
for  preparation  of tax  returns and  information  reports as  provided  in Section  5.03 of the Trust  Agreement,
including  without  limitation  Form  1099.  All tax  returns  and  information  reports  shall  be  signed  by the
Securities Administrator, as provided in Section 5.03 of the Trust Agreement.

                  Section 6.07.     Compensation and Indemnity.

                  Each of the Indenture Trustee,  Custodian and the Securities  Administrator  shall be paid by the
Master Servicer from a portion of the Master Servicing Fee as compensation for its services.

                  The Issuing  Entity shall  reimburse the Indenture  Trustee,  the Securities  Administrator,  the
Custodian and the Owner Trustee for all reasonable  out-of-pocket  expenses incurred or made by it, including costs
of collection.  Such expenses shall include expenses,  disbursements and advances of the Indenture  Trustee's,  the
Securities  Administrator's,  Custodian's or the Owner Trustee's  agents,  counsel,  accountants  and experts.  The
Issuing Entity shall indemnify each of the Indenture Trustee, the Securities  Administrator,  the Custodian and the
Master  Servicer  and hold each of them  harmless  against any and all claim,  tax,  penalty,  loss,  liability  or
expense  (including  attorneys'  fees and expenses) of any kind  whatsoever  incurred by it in connection  with the
administration  of this Trust and the  performance  of its duties under any of the Basic  Documents.  The Indenture
Trustee, the Securities  Administrator,  the Custodian, the Depositor or the Master Servicer, as applicable,  shall
notify  the  Issuing  Entity  promptly  of any claim  for which it may seek  indemnity.  Failure  by the  Indenture
Trustee,  the  Securities  Administrator,  the  Custodian,  the  Depositor or the Master  Servicer to so notify the
Issuing  Entity shall not relieve the Issuing  Entity of its  obligations  hereunder,  unless the Issuing  Entity's
defense of such claim is materially  prejudiced  thereby.  The Issuing Entity shall defend any such claim,  and the
Indenture  Trustee,  the  Securities  Administrator,  the  Custodian,  the  Depositor  or the Master  Servicer,  as
applicable  (each an "Indemnified  Party") shall have the right to employ separate counsel with respect to any such
claim and to  participate  in the  defense  thereof,  but the fees and  expenses  of such  counsel  shall be at the
expense of such  Indemnified  Party unless:  (i) the  employment  thereof has been  specifically  authorized by the
Issuing Entity in writing;  (ii) such  Indemnified  Party shall have been advised by such counsel that there may be
one or more legal  defenses  available  to it which are  different  from or  additional  to those  available to the
Issuing  Entity and in the  reasonable  judgment of such  counsel it is  advisable  for such  Indemnified  Party to
employ  separate  counsel or (iii) the  Issuing  Entity has  failed to assume  the  defense of such claim  within a
reasonable  period of time following  written notice thereof,  it being  understood,  however,  with respect to any
event  described in clause (ii) or clause (iii) hereof,  that the Issuing Entity shall not, in connection  with any
one such claim or separate but  substantially  similar or related  claims in the same  jurisdiction  arising out of
the same general  allegations or  circumstances,  be liable for the  reasonable  fees and expenses of more than one
separate  firm of attorneys  (in addition to local  counsel) at any time for all such  Indemnified  Parties,  which
firm shall be designated in writing by the  Indemnified  Parties.  The Issuing Entity is not obligated to reimburse
any expense or indemnify against any loss,  liability or expense incurred by the Indenture Trustee,  the Securities
Administrator,  the  Custodian,  the  Depositor  or the  Master  Servicer  through  the  Indenture  Trustee's,  the
Securities  Administrator's,  the  Custodian's,  the Depositor's or the Master  Servicer's own willful  misconduct,
negligence or bad faith.

                  Notwithstanding  anything to the contrary  contained herein,  the Issuing Entity shall not settle
any claim  involving the  Indenture  Trustee  without the Indenture  Trustee's  prior written  consent  unless such
settlement  involves a complete  and  absolute  release of the  Indenture  Trustee  from any and all  liability  in
connection with such claim.

                  The Issuing  Entity's  payment and  indemnification  obligations  to the Indenture  Trustee,  the
Securities  Administrator,  the Custodian,  the Depositor,  the Master  Servicer and the Owner Trustee  pursuant to
this  Section  6.07 shall  survive the  discharge of this  Indenture  and the  termination  or  resignation  of the
Indenture Trustee,  the Securities  Administrator,  the Custodian,  the Depositor or the Master Servicer.  When the
Indenture Trustee, the Securities  Administrator,  the Custodian,  the Depositor,  the Master Servicer or the Owner
Trustee  incurs  expenses  after the  occurrence  of an Event of Default  with respect to the Issuing  Entity,  the
expenses are intended to  constitute  expenses of  administration  under Title 11 of the United  States Code or any
other applicable federal or state bankruptcy, insolvency or similar law.

                  Section 6.08.     Replacement of Indenture Trustee or Securities Administrator.

                  No  resignation  or  removal of the  Indenture  Trustee or the  Securities  Administrator  and no
appointment  of a  successor  Indenture  Trustee or  Securities  Administrator  shall  become  effective  until the
acceptance of appointment by the successor Indenture Trustee or Securities  Administrator  pursuant to this Section
6.08.  The Indenture  Trustee or the  Securities  Administrator  may resign at any time by so notifying the Issuing
Entity.  Holders of a majority of Note  Balances of the Notes may remove the  Indenture  Trustee or the  Securities
Administrator  by so notifying  the Indenture  Trustee or the  Securities  Administrator,  as  applicable,  and may
appoint a successor  Indenture Trustee or Securities  Administrator.  The Issuing Entity shall remove the Indenture
Trustee or the Securities Administrator if:

                           (i)      the Indenture Trustee or the Securities  Administrator  fails to comply with or
                  qualify pursuant to the provisions of Section 6.11 hereof;

                           (ii)     the Indenture  Trustee or the Securities  Administrator  is adjudged a bankrupt
                  or insolvent;

                           (iii)    a receiver or other public  officer  takes charge of the  Indenture  Trustee or
                  the Securities Administrator or its property;

                           (iv)     the  Indenture  Trustee  or  the  Securities  Administrator  otherwise  becomes
                  incapable of acting; or

                           (v)      the Master  Servicer is  terminated  pursuant  to Section  6.06 of the Sale and
                  Servicing Agreement.

                  If the Indenture  Trustee or the Securities  Administrator  resigns or is removed or if a vacancy
exists in the office of the  Indenture  Trustee or the  Securities  Administrator  for any  reason  (the  Indenture
Trustee in such event being referred to herein as the retiring  Indenture Trustee and the Securities  Administrator
in such event being  referred to herein as the  retiring  Securities  Administrator  ), the Issuing  Entity  shall,
promptly appoint a successor Indenture Trustee or Securities Administrator, as applicable.

                  A successor  Indenture Trustee or Securities  Administrator shall deliver a written acceptance of
its appointment to the retiring Indenture Trustee or Securities  Administrator,  as applicable,  and to the Issuing
Entity.  Thereupon,  the  resignation  or removal of the retiring  Indenture  Trustee or  Securities  Administrator
shall  become  effective,  and the  successor  Indenture  Trustee or  Securities  Administrator  shall have all the
rights,  powers  and duties of the  Indenture  Trustee  or  Securities  Administrator,  as  applicable,  under this
Indenture.  The successor  Indenture Trustee or Securities  Administrator  shall mail a notice of its succession to
Noteholders and the Rating Agencies.  The retiring  Indenture  Trustee or Securities  Administrator  shall promptly
transfer all property  held by it as Indenture  Trustee or  Securities  Administrator  to the  successor  Indenture
Trustee or Securities Administrator, as applicable.

                  If a successor  Indenture  Trustee or  Securities  Administrator  does not take office  within 30
days after the  retiring  Indenture  Trustee  or  Securities  Administrator  resigns or is  removed,  the  retiring
Indenture Trustee or Securities  Administrator,  as applicable,  the Issuing Entity or the Holders of a majority of
Note  Balances of the Notes may petition any court of competent  jurisdiction  for the  appointment  of a successor
Indenture Trustee or Securities Administrator.

                  Notwithstanding  the replacement of the Indenture  Trustee or Securities  Administrator  pursuant
to this  Section,  the Issuing  Entity's  obligations  under  Section  6.07 shall  continue  for the benefit of the
retiring Indenture Trustee or Securities Administrator.

                  Section 6.09.     Successor Indenture Trustee or Securities Administrator by Merger.

                  If either the Indenture  Trustee or the Securities  Administrator  consolidates  with,  merges or
converts  into,  or transfers  all or  substantially  all of its  corporate  trust  business or assets to,  another
corporation or banking association,  the resulting,  surviving or transferee corporation,  without any further act,
shall be the  successor  Indenture  Trustee  or  Securities  Administrator,  as  applicable;  provided,  that  such
corporation  or banking  association  shall be otherwise  qualified  and eligible  under  Section 6.11 hereof.  The
Indenture  Trustee or the Securities  Administrator,  as applicable,  shall provide the Rating  Agencies with prior
written notice of any such transaction.

                  If at the time such  successor  or  successors  by merger,  conversion  or  consolidation  to the
Securities  Administrator  shall  succeed to the trusts  created by this  Indenture and any of the Notes shall have
been  authenticated  but  not  delivered,  any  such  successor  to the  Securities  Administrator  may  adopt  the
certificate of  authentication of any predecessor  trustee and deliver such Notes so authenticated;  and if at that
time any of the Notes  shall  not have been  authenticated,  any  successor  to the  Securities  Administrator  may
authenticate  such Notes either in the name of any  predecessor  hereunder  or in the name of the  successor to the
Securities  Administrator;  and in all such cases such  certificates  shall have the full force  which it is in the
Notes or in this Indenture provided that the certificate of the Securities Administrator shall have.

                  Section 6.10.     Appointment of Co-Indenture Trustee or Separate Indenture Trustee.

                           (a)      Notwithstanding  any other  provisions of this Indenture,  at any time, for the
                  purpose of  meeting  any legal  requirement  of any  jurisdiction  in which any part of the Trust
                  Estate may at the time be located,  the  Indenture  Trustee  shall have the power and may execute
                  and  deliver  all  instruments  to  appoint  one  or  more  Persons  to act  as a  co-trustee  or
                  co-trustees,  or separate trustee or separate  trustees,  of all or any part of the Trust Estate,
                  and to vest in such Person or Persons,  in such capacity and for the benefit of the  Noteholders,
                  such title to the Trust  Estate,  or any part hereof,  and,  subject to the other  provisions  of
                  this Section, such powers,  duties,  obligations,  rights and trusts as the Indenture Trustee may
                  consider  necessary or desirable.  No co-trustee or separate trustee  hereunder shall be required
                  to meet the terms of eligibility as a successor trustee under Section 6.11 hereof.

                           (b)      Every separate  trustee and co-trustee  shall, to the extent  permitted by law,
                  be appointed and act subject to the following provisions and conditions:

                           (i)      all  rights,  powers,  duties and  obligations  conferred  or imposed  upon the
                  Indenture  Trustee  shall  be  conferred  or  imposed  upon and  exercised  or  performed  by the
                  Indenture  Trustee and such separate  trustee or  co-trustee  jointly (it being  understood  that
                  such separate  trustee or co-trustee is not  authorized to act  separately  without the Indenture
                  Trustee  joining in such act),  except to the extent  that under any law of any  jurisdiction  in
                  which any particular  act or acts are to be performed the Indenture  Trustee shall be incompetent
                  or  unqualified  to perform  such act or acts,  in which event such  rights,  powers,  duties and
                  obligations  (including  the holding of title to the Trust  Estate or any portion  thereof in any
                  such  jurisdiction)  shall  be  exercised  and  performed  singly  by such  separate  trustee  or
                  co-trustee, but solely at the direction of the Indenture Trustee;

                           (ii)     no  trustee  hereunder  shall be  personally  liable  by  reason  of any act or
                  omission of any other trustee hereunder; and

                           (iii)    the Indenture  Trustee may at any time accept the  resignation of or remove any
                  separate trustee or co-trustee.

                           (c)      Any notice,  request or other writing  given to the Indenture  Trustee shall be
                  deemed to have been given to each of the then separate  trustees and co-trustees,  as effectively
                  as if given to each of them.  Every  instrument  appointing  any separate  trustee or  co-trustee
                  shall refer to this  Indenture and the  conditions of this Article VI. Each separate  trustee and
                  co-trustee,  upon its  acceptance  of the trusts  conferred,  shall be vested with the estates or
                  property  specified in its instrument of appointment,  either jointly with the Indenture  Trustee
                  or  separately,  as may be provided  therein,  subject to all the  provisions of this  Indenture,
                  specifically  including every provision of this Indenture  relating to the conduct of,  affecting
                  the  liability  of, or affording  protection  to, the Indenture  Trustee.  Every such  instrument
                  shall be filed with the Indenture Trustee.

                           (d)      Any separate  trustee or co-trustee  may at any time  constitute  the Indenture
                  Trustee,  its  agent or  attorney-in-fact  with full  power  and  authority,  to the  extent  not
                  prohibited  by law, to do any lawful act under or in respect of this  Indenture on its behalf and
                  in its name.  If any  separate  trustee or  co-trustee  shall die,  become  incapable  of acting,
                  resign or be removed, all of its estates,  properties,  rights, remedies and trusts shall vest in
                  and be  exercised  by the  Indenture  Trustee,  to the  extent  permitted  by  law,  without  the
                  appointment of a new or successor trustee.

                  Section 6.11.     Eligibility; Disqualification.

                  The  Indenture  Trustee  shall  at all  times  satisfy  the  requirements  of TIA §  310(a).  The
Indenture  Trustee  shall have a combined  capital  and  surplus of at least  $50,000,000  as set forth in its most
recent  published  annual report of condition and it or its parent shall have a long-term  debt rating of "Baa3" or
better by Moody's  and "BBB" or better by S&P and Fitch.  The  Indenture  Trustee  shall  comply with TIA § 310(b),
including the optional  provision  permitted by the second  sentence of TIA § 310(b)(9);  provided,  however,  that
there shall be excluded  from the  operation  of TIA § 310(b)(1)  any  indenture  or  indentures  under which other
securities  of the  Issuing  Entity are  outstanding  if the  requirements  for such  exclusion  set forth in TIA §
310(b)(1) are met.

                  Section 6.12.     Preferential Collection of Claims Against Issuing Entity.

                  The  Indenture  Trustee  shall  comply with TIA § 311(a),  excluding  any  creditor  relationship
listed in TIA § 311(b).  An Indenture  Trustee who has  resigned or been  removed  shall be subject to TIA § 311(a)
to the extent indicated.

                  Section 6.13.     Representations and Warranties.

                  The Indenture Trustee hereby represents that:

                           (i)      It is a  banking  corporation  duly  organized,  validly  existing  and in good
                  standing under the laws of the State of New York.

                           (ii)     The execution  and delivery of this  Indenture by it, and the  performance  and
                  compliance  with  the  terms  of this  Indenture  by it,  will  not  violate  its  organizational
                  documents.

                           (iii)    It has  the  full  power  and  authority  to  enter  into  and  consummate  all
                  transactions  contemplated  by this Indenture has duly  authorized  the  execution,  delivery and
                  performance of this Indenture, and has duly executed and delivered this Indenture.

                           (iv)     This  Indenture,  assuming  due  authorization,  execution  and delivery by the
                  Issuing Entity,  constitutes a valid, legal and binding obligation of it, enforceable  against it
                  in  accordance  with  the  terms  hereof,  subject  to  (A)  applicable  bankruptcy,  insolvency,
                  receivership,  reorganization,  moratorium and other laws affecting the enforcement of creditors'
                  rights generally,  and (B) general  principles of equity,  regardless of whether such enforcement
                  is considered in a proceeding in equity or at law.

                  Section 6.14.     Directions to Indenture Trustee and Securities Administrator.

                  Each of the Indenture Trustee and the Securities Administrator are hereby directed:

                           (i)      in the case of the  Indenture  Trustee,  to accept the  pledge of the  Mortgage
                  Loans;

                           (ii)     in the case of the  Securities  Administrator,  to cause the  Custodian to hold
                  the assets of the Trust in trust for the Noteholders  and to  authenticate  and deliver the Notes
                  substantially  in the  form  prescribed  by  Exhibits  A-1  through  A-2  to  this  Indenture  in
                  accordance with the terms of this Indenture; and

                           (iii)    to take all  other  actions  as shall be  required  to be taken by it under the
                  terms of this Indenture.

                  Section 6.15.     The Agents.

                  The provisions of this Indenture  relating to the limitations of the Indenture  Trustee's and the
Securities  Administrator's  liability and to its indemnity,  rights and protections shall inure also to the Paying
Agent and Note Registrar.

                                                    ARTICLE VII

                                          NOTEHOLDERS' LISTS AND REPORTS

                  Section 7.01.     Issuing  Entity To Furnish  Securities  Administrator  Names and  Addresses of
                                    Noteholders.

                  The Issuing  Entity will  furnish or cause to be furnished to the  Securities  Administrator  (a)
not more  than five days  after  each  Record  Date,  a list,  in such  form as the  Securities  Administrator  may
reasonably  require,  of the names and  addresses of the Holders of Notes as of such Record  Date,  and (b) at such
other times as the  Securities  Administrator  may request in writing,  within 30 days after receipt by the Issuing
Entity of any such  request,  a list of  similar  form and  content as of a date not more than 10 days prior to the
time  such  list  is  furnished;  provided,  however,  that so long as the  Securities  Administrator  is the  Note
Registrar, no such list shall be required to be furnished to the Securities Administrator.

                  Section 7.02.     Preservation of Information; Communications to Noteholders.

         (a)               The  Securities  Administrator  shall  preserve,  in as current a form as is  reasonably
practicable,  the names and  addresses of the Holders of Notes  contained in the most recent list  furnished to the
Indenture  Trustee as provided in Section 7.01 hereof and the names and  addresses of Holders of Notes  received by
the  Securities  Administrator  in its capacity as Note  Registrar.  The Securities  Administrator  may destroy any
list furnished to it as provided in such Section 7.01 upon receipt of a new list so furnished.

         (b)               Noteholders  or  Note  Owners  may  communicate  pursuant  to TIA §  312(b)  with  other
Noteholders or Note Owners with respect to their rights under this Indenture or under the Notes.

         (c)               The Issuing Entity,  the Indenture  Trustee,  the Securities  Administrator and the Note
Registrar shall have the protection of TIA § 312(c).

                  Section 7.03.     Reports of Issuing Entity.

         (a)               Solely in accordance with Section 4.02 of the Sale and Servicing Agreement,

                           (i)      The  Securities  Administrator  shall file with the Commission on behalf of the
                  Issuing  Entity,  with a copy to the Issuing  Entity and the  Depositor  upon filing,  the annual
                  reports  and the  information,  documents  and  other  reports  (or such  portions  of any of the
                  foregoing as the Commission may from time to time by rules and  regulations  prescribe)  that the
                  Issuing  Entity may be  required to file with the  Commission  pursuant to Section 13 or 15(d) of
                  the Exchange Act;

                           (ii)     The Securities  Administrator shall file with the Commission,  on behalf of the
                  Issuing  Entity,  in accordance  with rules and  regulations  prescribed from time to time by the
                  Commission such additional  information,  documents and reports with respect to compliance by the
                  Issuing  Entity with the  conditions and covenants of this Indenture as may be required from time
                  to time by such rules and regulations; and

                           (iii)    The Securities  Administrator  shall supply (and the  Securities  Administrator
                  shall  transmit by mail to all  Noteholders  described  in TIA § 313(c))  such  summaries  of any
                  information,  documents  and  reports  required  to be filed by the  Issuing  Entity  pursuant to
                  clauses (i) and (ii) of this Section  7.03(a) and by rules and  regulations  prescribed from time
                  to time by the Commission.

                           (iv)     For each  Distribution  Date,  through and including the  Distribution  Date in
                  December 2007, the Securities  Administrator  shall calculate the Significance  Percentage of the
                  Interest Rate Swap  Agreement and the Interest Rate Cap  Agreement.  If on any such  Distribution
                  Date,  the  aggregate  Significance  Percentage  is equal to or greater than 10%, the  Securities
                  Administrator  shall  promptly  notify  the  Depositor  and  the  Depositor,  on  behalf  of  the
                  Securities  Administrator,  shall obtain the  financial  information  required to be delivered by
                  the Swap  Provider  and the Cap  Provider,  pursuant  to the  terms  of the  Interest  Rate  Swap
                  Agreement  and the Interest Rate Cap  Agreement,  as  applicable.  If, on any  Distribution  Date
                  through and including the  Distribution  Date in December  2007, the  Significance  Percentage of
                  the  Interest  Rate Swap  Agreement  and the Interest  Rate Cap  Agreement is equal to or greater
                  than 10%, the  Securities  Administrator  shall  promptly  notify the Depositor and the Depositor
                  shall,   within  5  Business  Days  of  such  Distribution   Date,   deliver  to  the  Securities
                  Administrator  the  financial  information  provided to it by the Swap  Provider and Cap Provider
                  for inclusion in the Form 10-D relating to such Distribution Date.

                  With respect to any Payment  Date,  for  purposes of  determining  the  numerator of the fraction
that  constitutes the Significance  Percentage,  the interest rate used to project future amounts payable under the
Interest Rate Swap Agreement  shall be equal to the highest rate reflected on the Implied  Forwards Curve available
at  Bloomberg  Financial  Markets,  L.P.  for the  remaining  term of the  Interest  Rate Swap  Agreement  plus the
percentage  equivalent  of a  fraction,  the  numerator  of  which  is 3.00%  and the  denominator  of which is the
remaining  Payment Dates on which the Securities  Administrator  is entitled to receive payments under the Interest
Rate Swap  Agreement).  The discount rate used to determine the net present value of the estimated  future  amounts
payable shall be equal to the lowest rate reflected on the Implied  Forwards  Curve.  The Securities  Administrator
shall obtain the Implied  Forwards  Curve from Bloomberg  within 15 Business Days of the  respective  Payment Date.
To determine  the Implied  Forwards  Curve for such  Payment  Date,  the  Securities  Administrator  shall take the
following steps on the Bloomberg terminal:  (1) the following keystrokes shall be entered:  fwcv &lt;enter&gt;,  32
(or any such other number as represents the United States) &lt;enter&gt;,  3 &lt;enter&gt;;  (2) the Forwards shall
be set to  "1-Mo";  (3) the  Intervals  shall be set to  "1-Mo";  and (4) the  Points  shall  be set to  equal  the
remaining  term of the  Interest  Rate Swap  Agreement  in months  and the  Securities  Administrator  shall  click
&lt;enter&gt;.  For purposes of estimating  future  amounts  payable under the Interest  Rate Swap  Agreement,  the
accrual  period for both the Fixed  Amounts and the  Floating  Amounts (as  defined in the  Confirmation)  shall be
assumed to be a 30-day period in a 360-day year.

         (b)               Unless the Issuing Entity  otherwise  determines,  the fiscal year of the Issuing Entity
shall end on December 31st of each year.

                  Section 7.04.     Reports by Securities Administrator.

                  If required by TIA § 313(a),  within 60 days after each  January  30th  beginning  with March 31,
2008, the Securities  Administrator (on behalf of the Indenture  Trustee) shall mail to each Noteholder as required
by TIA §  313(c)  a  brief  report  dated  as of  such  date  that  complies  with  TIA §  313(a).  The  Securities
Administrator (on behalf of the Indenture Trustee) also shall comply with TIA § 313(b).

                  A copy  of each  report  at the  time  of its  mailing  to  Noteholders  shall  be  filed  by the
Securities  Administrator  with the  Commission via EDGAR and each stock  exchange,  if any, on which the Notes are
listed.  The Issuing  Entity shall notify the Indenture  Trustee and the Securities  Administrator  if and when the
Notes are listed on any stock exchange.

                  Section 7.05.     Statements to Noteholders.

         (a)               With  respect  to each  Payment  Date,  the  Securities  Administrator  shall  prepare a
statement (the "Remittance  Report")  containing the information set forth below with respect to such Payment Date,
which  information  shall be based solely upon the loan level  information  furnished  by the Servicer  and, if the
Securities  Administrator  is not the  Master  Servicer,  the  Master  Servicer,  as  applicable,  upon  which  the
Securities Administrator shall conclusively rely without independent verification thereof:

                           (i)      the  Available  Funds and the Note Rate for each Class for the related  Payment
                  Date;

                           (ii)     the  aggregate  amount of the  payment to each  Class of Notes on such  Payment
                  Date;

                           (iii)    the  amount of the  payment  set forth in  paragraph  (ii)  above in respect of
                  interest,  the  amount  thereof in respect of any Class  Interest  Carryover  Shortfall,  and the
                  amount of any Class Interest Carryover Shortfall remaining;

                           (iv)     the  amount of the  payment  set forth in  paragraph  (ii)  above in respect of
                  principal and the amount thereof in respect of the Class Principal Carryover  Shortfall,  and any
                  remaining Class Principal Carryover Shortfall;

                           (v)      the amount of Excess Interest paid as principal;

                           (vi)     the  aggregate  amount of the  Servicing  Fee and the Master  Servicing Fee for
                  such Payment Date;

                           (vii)    the Pool Balance and the aggregate  Principal  Balance of the Mortgage Loans in
                  each Loan Group as of the close of business on the last day of the preceding Due Period;

                           (viii)   the Class Note Balance of each Class of Notes after  giving  effect to payments
                  allocated to principal;

                           (ix)     the Overcollateralization Amount and the Required  Overcollateralization Amount
                  as of the close of business on the Payment  Date,  after  giving  effect to payments of principal
                  on such Payment Date;

                           (x)      whether a  Cumulative  Loss Event or a  Delinquency  Event has  occurred and is
                  continuing and the calculation thereof;

                           (xi)     the  aggregate  amount of  Principal  Prepayments  received  during the related
                  Prepayment Period;

                           (xii)    the amount of all Curtailments that were received during the Due Period;

                           (xiii)   the principal portion of all Monthly Payments received during the Due Period;

                           (xiv)    the interest  portion of all Monthly  Payments  received on the Mortgage  Loans
                  during the Due Period;

                           (xv)     the amount of the Monthly Advances and the Compensating  Interest payment to be
                  made on the Determination Date;

                           (xvi)    the amount to be distributed to the Certificates for the Payment Date;

                           (xvii)   the weighted  average  remaining term to maturity of the Mortgage Loans and the
                  weighted average Loan Rate as of the first day of the related Due Period;

                           (xviii)  the amount of all  payments  or  reimbursements  to the  Servicer  pursuant  to
                  Sections 3.03(ii) and (vi) of the Sale and Servicing Agreement (as reported by the Servicer);

                           (xix)    the number of Mortgage  Loans  outstanding  at the  beginning and at the end of
                  the related Due Period;

                           (xx)     the amount of  Liquidation  Loan Losses  experienced  during the  preceding Due
                  Period and the Cumulative Net Losses as a percentage of the Cut-Off Date Pool Balance;

                           (xxi)    as of the  end of the  preceding  calendar  month,  the  number  and  Principal
                  Balance of Mortgage Loans which are 30-59 days  delinquent;  the number and Principal  Balance of
                  Mortgage  Loans which are 60-89 days  delinquent;  the number and  Principal  Balance of Mortgage
                  Loans  which are 90 or more days  delinquent  (including  the  number  and  Principal  Balance of
                  Mortgage Loans which are in  foreclosure;  the number and Principal  Balance of Mortgage Loans in
                  bankruptcy;  and the number and Principal Balance of Mortgage Loans which are REO Property,  each
                  separately  set forth)  (for the  avoidance  of doubt,  delinquencies  in this  clause  (xxi) are
                  measured in accordance with the OTS method);

                           (xxii)   the amounts of Applied  Realized Loss Amounts for the applicable Due Period and
                  the cumulative amount of Applied Realized Loss Amounts to date;

                           (xxiii)  the number  and  aggregate  Principal  Balance of  Mortgage  Loans,  other than
                  Mortgage  Loans in default or imminent  default,  that were  modified by the Servicer  during the
                  related Due Period (as reported by the Servicer)

                           (xxiv)   the amount of Basis Risk Shortfall Amount paid to each Class of Group I Notes;

                           (xxv)    the amount of any Net Swap Payments or Swap Termination Payments;

                           (xxvi)   whether a Stepdown Date or Trigger Event is in effect on such Payment Date; and

                           (xxvii)  the applicable Record Dates,  Interest Accrual Periods and determination  dates
                  for calculating payments for such Payment Date.

         (b)               The  Securities  Administrator  shall make  available  such report to the Servicer,  the
Master Servicer,  the Indenture Trustee, the Seller, the Noteholders,  the Rating Agencies,  Bloomberg (at 499 Park
Avenue,  New York, New York 10022,  Attention:  Mike Geller) and Intex Solutions (at 35 Highland  Circle,  Needham,
Massachusetts  02144,  Attention:  Harold  Brennman) on the Payment Date.  The Securities  Administrator  may fully
rely upon and shall have no liability  with respect to  information  provided by the Servicer or, if the Securities
Administrator is not the Master Servicer,  the Master Servicer.  In the case of information  furnished  pursuant to
subclauses  (ii),  (iii) and (iv) above,  the amounts  shall be expressed in a separate  section of the report as a
dollar amount for each Class for each $1,000 original dollar amount as of the related Cut-Off Date.

         (c)               The Securities  Administrator  will make the Remittance Report (and, at its option,  any
additional  files  containing the same  information in an alternative  format)  available each month to Noteholders
and  the  parties  to  this  Indenture  via  the  Securities   Administrator's  internet  website.  The  Securities
Administrator's  internet  website  shall  initially  be  located  at  "www.ctslink.com".  Assistance  in using the
website  can be obtained  by calling  the  Securities  Administrator's  customer  service  desk at  1-866-846-4526.
Parties  that are unable to use the above  distribution  options  are  entitled to have a paper copy mailed to them
via first class mail by calling the  customer  service  desk and  indicating  such.  The  Securities  Administrator
shall have the right to change the way Remittance  Reports are distributed in order to make such  distribution more
convenient  and/or more accessible to the above parties and the Securities  Administrator  shall provide timely and
adequate  notification  to all above parties  regarding any such changes.  As a condition to access the  Securities
Administrator's  internet website,  the Securities  Administrator may require  registration and the acceptance of a
disclaimer.  The Securities  Administrator  will not be liable for the  dissemination  of information in accordance
with this Agreement.  The Securities  Administrator  shall also be entitled to rely on but shall not be responsible
for the content or accuracy of any  information  provided by third parties (other than the Master  Servicer and the
Custodian  if such parties are the same entity as the  Securities  Administrator)  for  purposes of  preparing  the
Remittance Report and may affix thereto any disclaimer it deems appropriate in its reasonable  discretion  (without
suggesting liability on the part of any other party hereto).

                                                   ARTICLE VIII

                                       ACCOUNTS, DISBURSEMENTS AND RELEASES

                  Section 8.01.     Collection of Money.

                  Except as otherwise  expressly  provided herein, the Securities  Administrator,  on behalf of the
Indenture  Trustee,  may demand  payment or  delivery  of, and shall  receive  and  collect,  directly  and without
intervention or assistance of any fiscal agent or other  intermediary,  all money and other property  payable to or
receivable by the Indenture  Trustee or the Securities  Administrator  pursuant to this  Indenture.  The Securities
Administrator  shall  apply all such money  received  by it as  provided  in this  Indenture.  Except as  otherwise
expressly  provided in this Indenture,  if any default occurs in the making of any payment or performance under any
agreement  or  instrument  that is part of the  Trust,  the  Indenture  Trustee  may  take  such  action  as may be
appropriate  to enforce such payment or  performance,  including the  institution  and  prosecution  of appropriate
Proceedings.  Any such  action  shall be  without  prejudice  to any right to claim a Default  or Event of  Default
under this Indenture and any right to proceed thereafter as provided in Article V.

                  Section 8.02.     Trust Accounts.

         (a)               On or prior  to the  Closing  Date,  the  Issuing  Entity  shall  cause  the  Securities
Administrator  to  establish  and  maintain,  in  the  name  of the  Indenture  Trustee,  for  the  benefit  of the
Noteholders, the Note Account as provided in Section 3.01 hereof.

         (b)               On each Payment Date, the Securities  Administrator  shall pay all remaining  amounts on
deposit in the Note Account to the  Noteholders  in respect of the Notes and to such other  persons in the order of
priority set forth in Section 3.05 hereof (except as otherwise provided in Section 5.04(b) hereof).

         (c)               Pursuant  to  Section  3.12 of the  Sale  and  Servicing  Agreement,  funds  in the Note
Account shall be invested as set forth therein.

                  Section 8.03.     Officer's Certificate.

                  The Indenture  Trustee shall receive at least seven  Business Days' written notice when requested
by the  Issuing  Entity to take any  action  pursuant  to  Section  8.05(a)  hereof,  accompanied  by copies of any
instruments  to be executed,  and the  Indenture  Trustee  shall also  require,  as a condition to such action,  an
Officer's  Certificate,  in form and substance  satisfactory to the Indenture Trustee,  stating the legal effect of
any such action,  outlining the steps required to complete the same, and concluding  that all conditions  precedent
to the taking of such action have been complied with.

                  Section 8.04.     Termination Upon Payment to Noteholders.

                  This Indenture and the respective  obligations and  responsibilities  of the Issuing Entity,  the
Indenture  Trustee  and  the  Securities   Administrator  created  hereby  shall  terminate  upon  the  payment  to
Noteholders,  the Certificate Paying Agent on behalf of the Owner Trustee,  the  Certificateholders,  the Indenture
Trustee and the  Securities  Administrator  of all amounts  required to be paid pursuant to Article III and Section
6.07 hereof;  provided,  however, that in no event shall the trust created hereby continue beyond the expiration of
21 years from the death of the  survivor  of the  descendants  of Joseph P.  Kennedy,  the late  ambassador  of the
United States to the Court of St. James, living on the date hereof.

                  Section 8.05.     Release of Trust Estate.

         (a)               Subject to the  payment of its fees,  expenses  and  indemnity  payments,  and the fees,
expenses and  indemnity  payments of the  Securities  Administrator,  the Master  Servicer and the  Custodian,  the
Indenture  Trustee may, and when  required by the  provisions  of this  Indenture  shall,  execute  instruments  to
release  property from the lien of this  Indenture,  or convey the Indenture  Trustee's  interest in the same, in a
manner and under  circumstances that are not inconsistent with the provisions of this Indenture,  including for the
purposes of any  repurchase of a Mortgage Loan  pursuant to Section 3.16 of the Sale and  Servicing  Agreement.  No
party relying upon an instrument  executed by the Indenture  Trustee as provided in Article VIII hereunder shall be
bound to ascertain the Indenture Trustee's  authority,  inquire into the satisfaction of any conditions  precedent,
or see to the application of any monies.

         (b)               The Indenture  Trustee  shall,  at such time as (i) there are no Notes  Outstanding  and
(ii) all sums due to the Indenture  Trustee and the Securities  Administrator  pursuant to this Indenture have been
paid, release any remaining portion of the Trust Estate that secured the Notes from the lien of this Indenture.

         (c)               The Indenture  Trustee shall release  property from the lien of this Indenture  pursuant
to this  Section  8.05  only  upon  receipt  of a request  from the  Issuing  Entity  accompanied  by an  Officers'
Certificate and an Opinion of Counsel stating that all applicable requirements have been satisfied.

                  Section 8.06.     Surrender of Notes Upon Final Payment.

                  By acceptance of any Note,  the Holder  thereof  agrees to surrender  such Note to the Securities
Administrator promptly, prior to such Noteholder's receipt of the final payment thereon.

                  Section 8.07.     Optional Redemption of the Notes.

         (a)               The Majority  Certificateholder  shall have the option to purchase  the  Mortgage  Loans
and REO Property on any Payment Date on or after the Payment Date on which the aggregate Stated  Principal  Balance
of the Mortgage  Loans as of the end of the prior Due Period is less than or equal to 10% of the  aggregate  Stated
Principal  Balance of the  Mortgage  Loans as of Cut-off  Date (the  "Optional  Redemption  Date").  The  aggregate
purchase  price  will be equal to the  greater of (A) the sum of (x) the  aggregate  outstanding  Stated  Principal
Balance of the  Mortgage  Loans  (other than those  referred to in clause (y) below),  including  accrued  interest
thereon,  and (y) in the case of any REO  property  and any  Mortgage  Loans  with  respect  to  which  foreclosure
proceedings  have been  initiated or are otherwise 120 days or more  delinquent,  the fair market value of such REO
property and mortgage loans  (disregarding  accrued interest  thereon) and (B) the sum of the aggregate unpaid Note
Balance of the Notes (other than any Allocated  Realized Loss  Amounts),  all accrued and unpaid  interest  thereon
(other than any Basis Risk Shortfall  Amounts),  any unreimbursed  Monthly Advances and Servicing  Advances and any
Swap  Termination  Payment  payable to the Swap Provider then  remaining  unpaid or which is due to the exercise of
such  option  (the  "Redemption  Price");  provided,  however,  that  the  Majority  Certificateholder  will not be
permitted to purchase the Mortgage  Loans unless the  Redemption  Price is sufficient to pay the Indenture  Trustee
all amounts owing to it hereunder and to retire the Note Balance of the remaining Notes to zero.

         (b)               In  order to  exercise  the  foregoing  option,  the  Majority  Certificateholder  shall
provide written notice of its exercise of such option to the Indenture Trustee, the Securities  Administrator,  the
Swap Provider and the Owner Trustee at least 15 days prior to its exercise.  Following  receipt of the notice,  the
Securities  Administrator  shall provide notice to the  Noteholders of the final payment on the Notes. In addition,
the Majority  Certificateholder  shall,  not less than one Business Day prior to the proposed Payment Date on which
such redemption is to be made,  deposit the aggregate  redemption  price specified in (a) above with the Securities
Administrator,  who shall deposit the aggregate  redemption  price into the Note Account and shall,  on the Payment
Date after  receipt of the funds,  apply such funds to make final  payments of principal  and interest on the Notes
in accordance with Section  3.05(b) and (c) hereof and payment in full to the Indenture  Trustee and the Securities
Administrator  of all  amounts  owing to it  hereunder,  and this  Indenture  shall be  discharged  subject  to the
provisions  of Section 4.10 hereof.  If for any reason the amount  deposited by the Majority  Certificateholder  is
not  sufficient  to make such  redemption  or such  redemption  cannot be completed  for any reason,  the amount so
deposited by the Majority  Certificateholder  with the Securities  Administrator  shall be immediately  returned to
the Majority  Certificateholder  in full and shall not be used for any other purpose or be deemed to be part of the
Trust Estate.

         (c)               In connection with any redemption pursuant to this Section 8.07:

                  (i)               At least  fifteen  (15) days prior to the latest  date on which  notice of such
         optional  redemption  is  required to be mailed to the  Noteholders,  the Seller  shall  notify in writing
         (which may be done in electronic  format) the Swap Provider and the Securities  Administrator of the final
         Payment Date on which the Seller intends to redeem the Notes;

                  (ii)              No later than 4:00 pm (New York City time) four (4) Business  Days prior to the
         final Payment Date  specified in the notices  required  pursuant to this Section  8.07,  the Swap Provider
         shall  notify  in  writing  (in  accordance  with the  applicable  provisions  of the  Interest  Rate Swap
         Agreement)  (which  may be  done in  electronic  format)  and by  phone,  the  Seller  and the  Securities
         Administrator of the amount of the Estimated Swap Termination Payment; and

                  (iii)             One (1) Business Day prior to the final  Payment Date  specified in the notices
         required  pursuant to Section 8.06,  (x) the Seller  shall,  no later than 1:00 pm (New York City time) on
         such day, deliver to the Securities  Administrator  and the Securities  Administrator  shall deposit funds
         in the Note  Account in an amount equal to the sum of the  Termination  Price (which shall be based on the
         Estimated  Swap  Termination  Payment),  and (y) if the  Securities  Administrator  shall have received an
         Officer's  Certificate  stating  that all of the  requirements  for  optional  redemption  have  been met,
         including  without  limitation the deposit  required  pursuant to the immediately  preceding clause (x) as
         well as the requirements  specified in this Section 8.07, then the Securities  Administrator shall, on the
         same Business Day,  provide written notice (which may be done in electronic  format) to the Seller and the
         Swap  Provider  (in  accordance  with the  applicable  provision  of the  Interest  Rate  Swap  Agreement)
         confirming  (a) its  receipt  of the  Termination  Price  (which  shall  be based  on the  Estimated  Swap
         Termination  Payment),  and (b) that all other  requirements  specified in this Section 8.07 have been met
         (the  "Optional  Redemption  Notice").  Upon  the  delivery  of  the  Optional  Redemption  Notice  by the
         Securities  Administrator  pursuant to the preceding  sentence,  (i) the optional  redemption shall become
         irrevocable,  (ii) the  notice to  Noteholders  of such  optional  redemption  provided  pursuant  to this
         Section 8.07 shall become  unrescindable,  (iii) the Swap Provider  shall  determine the Swap  Termination
         Payment in accordance  with the Interest Rate Swap  Agreement  (which shall not exceed the Estimated  Swap
         Termination  Payment),  and (iv) the Swap Provider shall provide to the Securities  Administrator  written
         notice of the amount of the Swap  Termination  Payment not later than two (2)  Business  Days prior to the
         final Payment Date specified in the notices required pursuant to this Section 8.07.

                  Section 8.08.     Collateral Account.

                  The Securities  Administrator  is hereby  directed to perform the  obligations of the Derivatives
Custodian as defined under the Derivatives  Credit Support Annex (the  "Derivatives  Custodian").  On or before the
Closing Date, the Derivatives  Custodian shall establish a Derivatives  Collateral Account.  The Collateral Account
shall  be held in the  name  of the  Derivatives  Custodian  in  trust  for the  benefit  of the  Noteholders.  The
Collateral  Account must be an Eligible Account and shall be titled  "Collateral  Account,  Wells Fargo Bank, N.A.,
as Derivatives  Custodian for registered  Noteholders of Newcastle Mortgage  Securities Trust 2007-1,  Asset-Backed
Notes, Series 2007-1."

                  The Derivatives  Custodian shall credit to the Collateral Account all collateral  (whether in the
form of cash or  securities)  posted by the  Derivatives  Provider  to secure the  obligations  of the  Derivatives
Provider  in  accordance  with the terms of the  Schedule  to the ISDA  Master  Agreement.  Except  for  investment
earnings,  the Derivatives  Provider shall not have any legal,  equitable or beneficial  interest in the Collateral
Account  other  than in  accordance  with the  Schedule  to the ISDA  Master  Agreement  and  applicable  law.  The
Derivatives  Custodian  shall maintain and apply all  collateral and earnings  thereon on deposit in the Collateral
Account in accordance with Derivatives Credit Support Annex.

                  Cash  collateral  posted by the Derivatives  Provider in accordance  with the Derivatives  Credit
Support  Annex  shall be  invested  at the  direction  of the  Derivatives  Provider  in  Eligible  Investments  in
accordance  with the  requirements  of the  Derivatives  Credit  Support  Annex.  All amounts  earned on amounts on
deposit in the Collateral  Account (whether cash collateral or securities)  shall be for the account of and taxable
to the Derivatives Provider.

                  Upon the  occurrence  of an Event of  Default  or  Specified  Condition  (each as  defined in the
Interest Rate Swap  Agreement)  with respect to the  Derivatives  Provider or upon  occurrence or designation of an
Early  Termination Date (as defined in the Schedule to the ISDA Master  Agreement) as a result of any such Event of
Default or Specified  Condition  with respect to the  Derivatives  Provider,  and, in either such case,  unless the
Derivatives  Provider has paid in full all of its Obligations (as defined in the Derivatives  Credit Support Annex)
that are then due,  then any  collateral  posted by the  Derivatives  Provider in accordance  with the  Derivatives
Credit  Support  Annex  shall be  applied  to the  payment  of any  Obligations  due to Party B (as  defined in the
Schedule to the ISDA Master  Agreement)  in  accordance  with the  Derivatives  Credit  Support  Annex.  Any excess
amounts held in such  Collateral  Account  after  payment of all amounts owing to Party B under the Schedule to the
ISDA Master  Agreement  shall be withdrawn  from the  Collateral  Account and paid to the  Derivatives  Provider in
accordance with the Derivatives Credit Support Annex.

                                                    ARTICLE IX

                                              SUPPLEMENTAL INDENTURES

                  Section 9.01.     Supplemental Indentures Without Consent of Noteholders.

         (a)               Without  the  consent of the  Holders  of any Notes but with prior  notice to the Rating
Agencies,  the Issuing  Entity,  the Indenture  Trustee and the  Securities  Administrator,  when  authorized by an
Issuing  Entity  Request,  at any time and from time to time,  may enter into one or more  indentures  supplemental
hereto (which shall conform to the  provisions  of the TIA as in force at the date of the  execution  thereof),  in
form satisfactory to the Indenture Trustee and the Securities Administrator, for any of the following purposes:

                  (i)      to correct or amplify the  description  of any  property at any time subject to the lien
         of this  Indenture,  or better to assure,  convey and confirm  unto the  Indenture  Trustee  any  property
         subject or  required  to be  subjected  to the lien of this  Indenture,  or to subject to the lien of this
         Indenture additional property;

                  (ii)     to evidence the succession,  in compliance  with the applicable  provisions  hereof,  of
         another  person to the Issuing  Entity,  and the  assumption by any such successor of the covenants of the
         Issuing Entity herein and in the Notes contained;

                  (iii)    to add to the  covenants  of the Issuing  Entity,  for the benefit of the Holders of the
         Notes, or to surrender any right or power herein conferred upon the Issuing Entity;

                  (iv)     to convey,  transfer,  assign,  mortgage or pledge any property to or with the Indenture
         Trustee;

                  (v)      to cure  any  ambiguity,  to  correct  or  supplement  any  provision  herein  or in any
         supplemental  indenture that may be inconsistent  with any other provision  herein or in any  supplemental
         indenture;

                  (vi)     to make any other  provisions  with respect to matters or questions  arising  under this
         Indenture or in any  supplemental  indenture;  provided,  that such action (as  evidenced by either (i) an
         Opinion  of  Counsel  delivered  to the  Indenture  Trustee  and  the  Securities  Administrator  or  (ii)
         confirmation  from the Rating  Agencies that such amendment will not result in the reduction or withdrawal
         of the rating of any Class of Notes)  shall not  materially  and  adversely  affect the  interests  of the
         Holders of the Notes;

                  (vii)    to evidence and provide for the acceptance of the  appointment  hereunder by a successor
         trustee  with  respect to the Notes and to add to or change any of the  provisions  of this  Indenture  as
         shall be necessary to  facilitate  the  administration  of the trusts  hereunder by more than one trustee,
         pursuant to the requirements of Article VI hereof; or

                  (viii)   to modify,  eliminate  or add to the  provisions  of this  Indenture  to such  extent as
         shall be  necessary  to effect the  qualification  of this  Indenture  under the TIA or under any  similar
         federal statute  hereafter  enacted and to add to this Indenture such other provisions as may be expressly
         required by the TIA;

provided,  however,  that no such indenture  supplements shall be entered into unless the Indenture Trustee and the
Securities  Administrator  shall have  received  (x) an Opinion  of  Counsel as to the  enforceability  of any such
indenture  supplement  and to the  effect  that (i) such  indenture  supplement  is  permitted  hereunder  and (ii)
entering  into such  indenture  supplement  will not  result in a  "substantial  modification"  of the Notes  under
Treasury  Regulation  Section  1.1001-3 or  adversely  affect the status of the Notes as  indebtedness  for federal
income  tax  purposes  and (y) in the case of (vi) and  (viii)  above,  an  Officer's  Certificate  of the  Sponsor
certifying  that such  supplemental  indenture will not cause the Trust to fail to qualify as a "qualified  special
purpose entity" under Financial Accounting Standard 140.

                  Each of the Indenture  Trustee and the Securities  Administrator is hereby  authorized to join in
the execution of any such supplemental  indenture and to make any further  appropriate  agreements and stipulations
that may be therein contained.

         (b)               The Issuing  Entity,  the  Indenture  Trustee  and the  Securities  Administrator,  when
authorized  by an Issuing  Entity  Request,  may,  also  without the consent of any of the Holders of the Notes and
prior notice to the Rating Agencies,  enter into an indenture or indentures  supplemental hereto for the purpose of
adding any provisions  to, or changing in any manner or eliminating  any of the provisions of, this Indenture or of
modifying in any manner the rights of the Holders of the Notes under this Indenture;  provided,  however, that such
action (x) as  evidenced  by an Opinion of  Counsel,  (i) is  permitted  by this  Indenture  and (ii) shall not (a)
adversely  affect in any material  respect the interests of any Noteholder  (which may be evidenced by confirmation
from the Rating  Agencies that such  amendment  will not result in the reduction or withdrawal of the rating of any
Class of Notes) or (b) if 100% of the  Certificates  are not owned by a REIT, a "qualified  REIT  subsidiary" or by
an entity that is wholly-owned  by a REIT or a "qualified  REIT  subsidiary" and disregarded for federal income tax
purposes,  cause the Issuing  Entity to be subject to an entity  level tax for federal  income tax purposes and (y)
as evidenced by an Officer's  Certificate  of the Sponsor  certifying as such,  will not cause the Trust to fail to
qualify as a "qualified special purpose entity" under Financial Accounting Standard 140.

         (c)               Notwithstanding  any of the other  provisions of this Section 9.01,  none of the Issuing
Entity,  the Indenture  Trustee or the  Securities  Administrator  shall enter into any amendment to this Agreement
that could  reasonably  be  expected  to have a  material  adverse  effect on the  interests  of the Swap  Provider
hereunder  (excluding,  for the avoidance of doubt, any supplement  indenture to the Indenture that is entered into
solely for the purpose of appointing a successor servicer, master servicer,  securities  administrator,  trustee or
other  service  provider)  without the prior  written  consent of the Swap  Provider,  which  consent  shall not be
unreasonably withheld, conditioned or delayed.

                  Section 9.02.     Supplemental Indentures With Consent of Noteholders.

                  The Issuing Entity,  the Indenture Trustee and the Securities  Administrator,  when authorized by
an Issuing  Entity  Request,  also may, with prior notice to the Rating  Agencies and, with the consent of the Swap
Provider (if  materially  and adversely  affected  thereby) and the Holders of not less than a majority of the Note
Balance of each Class of Notes  affected  thereby,  by Act (as  defined in Section  10.03  hereof) of such  Holders
delivered to the Issuing Entity,  the Indenture Trustee and the Securities  Administrator,  enter into an indenture
or  indentures  supplemental  hereto for the  purpose of adding any  provisions  to, or  changing  in any manner or
eliminating  any of the  provisions  of, this  Indenture or of modifying in any manner the rights of the Holders of
the Notes under this Indenture;  provided,  however, that no such supplemental indenture shall, without the consent
of (a) the Holder of each Note  affected  thereby  and (b) the Holders of not less than 50% of the  aggregate  Note
Balance of the Notes registered in the name of any Person other than the Seller or any of its Affiliates:

                  (i)      change the date of payment of any  installment  of principal of or interest on any Note,
         or reduce the  principal  amount  thereof or the interest  rate  thereon,  change the  provisions  of this
         Indenture  relating  to the  application  of  collections  on, or the  proceeds  of the sale of, the Trust
         Estate to payment of principal of or interest on the Notes,  or change any place of payment where,  or the
         coin or currency in which, any Note or the interest  thereon is payable,  or impair the right to institute
         suit  for the  enforcement  of the  provisions  of this  Indenture  requiring  the  application  of  funds
         available  therefor,  as  provided  in Article V, to the payment of any such amount due on the Notes on or
         after the respective due dates thereof;

                  (ii)     reduce the  percentage  of the aggregate  Note Balance of the Notes,  the consent of the
         Holders of which is required for any such supplemental  indenture,  or the consent of the Holders of which
         is required for any waiver of compliance  with certain  provisions of this  Indenture or certain  defaults
         hereunder and their consequences provided for in this Indenture;

                  (iii)    modify  or  alter  the  provisions  of  the  proviso  to  the  definition  of  the  term
         "Outstanding" or modify or alter the exception in the definition of the term "Holder";

                  (iv)     reduce the  percentage  of the  aggregate  Note Balance of the Notes  required to direct
         the  Indenture  Trustee to direct the Issuing  Entity to sell or liquidate  the Trust  Estate  pursuant to
         Section 5.04 hereof;

                  (v)      modify any  provision of this Section 9.02 except to increase any  percentage  specified
         herein or to provide that certain  additional  provisions of this Indenture or the Basic Documents  cannot
         be modified or waived without the consent of the Holder of each Note affected thereby;

                  (vi)     modify  any of the  provisions  of  this  Indenture  in such  manner  as to  affect  the
         calculation  of the amount of any  payment of interest or  principal  due on any Note on any Payment  Date
         (including the calculation of any of the individual components of such calculation); or

                  (vii)    permit the  creation of any lien  ranking  prior to or on a parity with the lien of this
         Indenture with respect to any part of the Trust Estate or, except as otherwise  permitted or  contemplated
         herein,  terminate  the lien of this  Indenture on any property at any time subject  hereto or deprive the
         Holder of any Note of the security provided by the lien of this Indenture;

and  provided,  further,  that such action  shall not,  as  evidenced  by an Opinion of Counsel,  cause the Issuing
Entity (if 100% of the  Certificates  are not owned by a REIT, a "qualified  REIT  subsidiary" or by an entity that
is wholly-owned  by a REIT or a "qualified REIT  subsidiary" and disregarded for federal income tax purposes) to be
subject to an entity level tax.

                  Any such action  shall not (as  evidenced  by either (i) an Opinion of Counsel  delivered  to the
Indenture  Trustee  and the  Securities  Administrator  or (ii)  confirmation  from the Rating  Agencies  that such
amendment will not result in the reduction or withdrawal of the rating of any Class of Notes)  adversely  affect in
any  material  respect the  interest  of any Holder  (other  than a Holder who shall  consent to such  supplemental
indenture).

                  It shall not be  necessary  for any Act of  Noteholders  under this  Section  9.02 to approve the
particular form of any proposed  supplemental  indenture,  but it shall be sufficient if such Act shall approve the
substance thereof.

                  Promptly  after the execution by the Issuing  Entity,  the Indenture  Trustee and the  Securities
Administrator  of any  supplemental  indenture  pursuant to this Section 9.02, the Securities  Administrator  shall
mail to the Holders of the Notes to which such amendment or supplemental  indenture  relates a notice setting forth
in general terms the substance of such  supplemental  indenture.  Any failure of the  Securities  Administrator  to
mail such notice, or any defect therein,  shall not, however,  in any way impair or affect the validity of any such
supplemental indenture.

                  Section 9.03.     Execution of Supplemental Indentures.

                  In  executing,  or  permitting  the  additional  trusts  created by, any  supplemental  indenture
permitted by this  Article IX or the  modification  thereby of the trusts  created by this  Indenture,  each of the
Indenture Trustee and the Securities  Administrator shall be entitled to receive,  and subject to Sections 6.01 and
6.02 hereof,  shall be fully  protected in relying upon,  an Opinion of Counsel  stating that the execution of such
supplemental  indenture is  authorized  or  permitted  by this  Indenture.  Each of the  Indenture  Trustee and the
Securities  Administrator  may, but shall not be  obligated  to, enter into any such  supplemental  indenture  that
affects the Indenture  Trustee's or the Securities  Administrator's own rights,  duties,  liabilities or immunities
under this Indenture or otherwise.

                  Section 9.04.     Effect of Supplemental Indenture.

                  Upon the  execution  of any  supplemental  indenture  pursuant  to the  provisions  hereof,  this
Indenture  shall be and shall be deemed to be modified  and amended in  accordance  therewith  with  respect to the
Notes affected thereby,  and the respective rights,  limitations of rights,  obligations,  duties,  liabilities and
immunities  under this Indenture of the Indenture  Trustee,  the Securities  Administrator,  the Issuing Entity and
the Holders of the Notes shall thereafter be determined,  exercised and enforced  hereunder subject in all respects
to such  modifications and amendments,  and all the terms and conditions of any such  supplemental  indenture shall
be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

                  Section 9.05.     Conformity with Trust Indenture Act.

                  Every  amendment of this Indenture and every  supplemental  indenture  executed  pursuant to this
Article  IX shall  conform  to the  requirements  of the  Trust  Indenture  Act as then in  effect  so long as this
Indenture shall then be qualified under the Trust Indenture Act.

                  Section 9.06.     Reference in Notes to Supplemental Indentures.

                  Notes  authenticated and delivered after the execution of any supplemental  indenture pursuant to
this  Article IX may,  and if required by the  Indenture  Trustee or the  Securities  Administrator  shall,  bear a
notation in form approved by the Indenture  Trustee and the Securities  Administrator as to any matter provided for
in such  supplemental  indenture.  If the Issuing  Entity,  the Indenture  Trustee or the Securities  Administrator
shall so determine,  new Notes so modified as to conform,  in the opinion of the Indenture Trustee,  the Securities
Administrator  and the Issuing  Entity,  to any such  supplemental  indenture  may be prepared  and executed by the
Issuing Entity and authenticated and delivered by the Securities Administrator in exchange for Outstanding Notes.

                                                     ARTICLE X

                                                   MISCELLANEOUS

                  Section 10.01.    Compliance Certificates and Opinions, etc.

         (a)               Upon any  application or request by the Issuing  Entity to the Indenture  Trustee or the
Securities  Administrator  to take any action  under any  provision  of this  Indenture,  the Issuing  Entity shall
furnish to the Indenture  Trustee or the  Securities  Administrator,  as applicable,  (i) an Officer's  Certificate
stating that all  conditions  precedent,  if any,  provided for in this Indenture  relating to the proposed  action
have been  complied  with and (ii) an Opinion of  Counsel  stating  that in the  opinion of such  counsel  all such
conditions  precedent,  if any,  have been  complied  with,  except that,  in the case of any such  application  or
request as to which the furnishing of such documents is  specifically  required by any provision of this Indenture,
no additional certificate or opinion need be furnished.

                  Every  certificate  or opinion with respect to compliance  with a condition or covenant  provided
for in this Indenture shall include:

                  (i)               a statement that each signatory of such  certificate or opinion has read or has
         caused to be read such covenant or condition and the definitions herein relating thereto;

                  (ii)              a  brief   statement  as  to  the  nature  and  scope  of  the  examination  or
         investigation upon which the statements or opinions contained in such certificate or opinion are based;

                  (iii)             a statement  that, in the opinion of each such  signatory,  such  signatory has
         made such  examination  or  investigation  as is necessary to enable such signatory to express an informed
         opinion as to whether or not such covenant or condition has been complied with;

                  (iv)              a  statement  as to  whether,  in the  opinion  of each  such  signatory,  such
         condition or covenant has been complied with; and

                  (v)               if the signatory of such  certificate or opinion is required to be Independent,
         the statement required by the definition of the term "Independent Certificate."

         (b)               (i) Prior to the deposit of any  Collateral  or other  property or  securities  with the
Indenture  Trustee that is to be made the basis for the release of any property or  securities  subject to the lien
of this  Indenture,  the  Issuing  Entity  shall,  in  addition to any  obligation  imposed in Section  10.01(a) or
elsewhere in this Indenture,  furnish to the Indenture Trustee an Officer's  Certificate  certifying or stating the
opinion of each person  signing such  certificate  as to the fair value  (within 90 days prior to such  deposit) to
the Issuing  Entity of the  Collateral  or other  property or  securities  to be so  deposited  and a report from a
nationally recognized accounting firm verifying such value.

                  (ii)              Whenever the Issuing Entity is required to furnish to the Indenture  Trustee an
         Officer's  Certificate  certifying  or  stating  the  opinion  of any  signer  thereof  as to the  matters
         described  in clause  (i) above,  the  Issuing  Entity  shall also  deliver  to the  Indenture  Trustee an
         Independent  Certificate from a nationally  recognized accounting firm as to the same matters, if the fair
         value of the  securities  to be so deposited and of all other such  securities  made the basis of any such
         withdrawal or release since the  commencement  of the then current fiscal year of the Issuing  Entity,  as
         set forth in the  certificates  delivered  pursuant  to clause (i) above and this clause  (ii),  is 10% or
         more of the  aggregate  Note  Balance of the Notes,  but such a  certificate  need not be  furnished  with
         respect to any  securities so deposited,  if the fair value thereof as set forth in the related  Officer's
         Certificate is less than $25,000 or less than one percent of the aggregate Note Balance of the Notes.

                  (iii)             Whenever any property or  securities  are to be released  from the lien of this
         Indenture,  the Issuing  Entity  shall also  furnish to the  Indenture  Trustee an  Officer's  Certificate
         certifying  or stating the opinion of each person  signing such  certificate  as to the fair value (within
         90 days prior to such release) of the property or  securities  proposed to be released and stating that in
         the opinion of such person the  proposed  release  will not impair the  security  under this  Indenture in
         contravention of the provisions hereof.

                  (iv)              Whenever the Issuing Entity is required to furnish to the Indenture  Trustee an
         Officer's  Certificate  certifying  or  stating  the  opinion  of any  signer  thereof  as to the  matters
         described in clause  (iii)  above,  the Issuing  Entity  shall also  furnish to the  Indenture  Trustee an
         Independent  Certificate  as to the same  matters if the fair value of the property or  securities  and of
         all other property or securities  released from the lien of this Indenture  since the  commencement of the
         then-current  calendar  year,  as set forth in the  certificates  required by clause  (iii) above and this
         clause (iv),  equals 10% or more of the aggregate  Note Balance of the Notes,  but such  certificate  need
         not be furnished  in the case of any release of property or  securities  if the fair value  thereof as set
         forth in the  related  Officer's  Certificate  is less than  $25,000 or less than one  percent of the then
         aggregate Note Balance of the Notes.

                  Section 10.02.    Form of Documents Delivered to Indenture Trustee.

                  In any case where  several  matters are required to be certified by, or covered by an opinion of,
any  specified  Person,  it is not  necessary  that all such matters be certified by, or covered by the opinion of,
only one such  Person,  or that they be so  certified  or covered  by only one  document,  but one such  Person may
certify or give an opinion with  respect to some  matters and one or more other such  Persons as to other  matters,
and any such Person may certify or give an opinion as to such matters in one or several documents.

                  Any certificate or opinion of an Authorized  Officer of the Issuing Entity may be based,  insofar
as it relates to legal  matters,  upon a certificate or opinion of, or  representations  by,  counsel,  unless such
officer  knows,  or in  the  exercise  of  reasonable  care  should  know,  that  the  certificate  or  opinion  or
representations  with  respect to the matters upon which his  certificate  or opinion is based are  erroneous.  Any
such  certificate  of an  Authorized  Officer or Opinion of Counsel may be based,  insofar as it relates to factual
matters,  upon a  certificate  or opinion of, or  representations  by, an officer or officers of the Sponsor or the
Issuing  Entity,  stating that the  information  with respect to such factual  matters is in the  possession of the
Sponsor or the Issuing  Entity,  unless such counsel knows, or in the exercise of reasonable care should know, that
the certificate or opinion or representations with respect to such matters are erroneous.

                  Where any  Person is  required  to make,  give or  execute  two or more  applications,  requests,
consents,  certificates,  statements,  opinions or other instruments under this Indenture,  they may, but need not,
be consolidated and form one instrument.

                  Whenever in this  Indenture,  in connection  with any application or certificate or report to the
Indenture  Trustee,  it is provided  that the Issuing  Entity  shall  deliver  any  document as a condition  of the
granting of such  application,  or as  evidence of the Issuing  Entity's  compliance  with any term  hereof,  it is
intended that the truth and accuracy,  at the time of the granting of such  application or at the effective date of
such  certificate  or report (as the case may be), of the facts and opinions  stated in such document shall in such
case be  conditions  precedent  to the  right of the  Issuing  Entity to have such  application  granted  or to the
sufficiency  of such  certificate  or  report.  The  foregoing  shall  not,  however,  be  construed  to affect the
Indenture  Trustee's or the Securities  Administrator's  right to rely upon the truth and accuracy of any statement
or opinion contained in any such document as provided in Article VI.

                  Section 10.03.    Acts of Noteholders.

         (a)               Any request, demand,  authorization,  direction, notice, consent, waiver or other action
provided by this  Indenture  to be given or taken by  Noteholders  may be embodied in and  evidenced by one or more
instruments  of  substantially  similar tenor signed by such  Noteholders  in person or by agents duly appointed in
writing;  and  except as herein  otherwise  expressly  provided,  such  action  shall  become  effective  when such
instrument  or  instruments  are  delivered to the  Securities  Administrator,  and,  where it is hereby  expressly
required,  to the Issuing  Entity.  Such instrument or instruments  (and the action embodied  therein and evidenced
thereby)  are  herein  sometimes  referred  to  as  the  "Act"  of  the  Noteholders  signing  such  instrument  or
instruments.  Proof of  execution  of any such  instrument  or of a  writing  appointing  any such  agent  shall be
sufficient  for any purpose of this  Indenture  and  (subject to Section 6.01  hereof)  conclusive  in favor of the
Securities Administrator and the Issuing Entity, if made in the manner provided in this Section 10.03 hereof.

         (b)               The fact and date of the  execution by any person of any such  instrument or writing may
be proved in any manner that the Securities Administrator deems sufficient.

         (c)               The ownership of Notes shall be proved by the Note Registrar.

         (d)               Any request, demand,  authorization,  direction, notice, consent, waiver or other action
by the  Holder of any Notes  shall  bind the  Holder of every  Note  issued  upon the  registration  thereof  or in
exchange  therefor  or in lieu  thereof,  in respect  of  anything  done,  omitted  or  suffered  to be done by the
Securities  Administrator  or the Issuing  Entity in reliance  thereon,  whether or not  notation of such action is
made upon such Note.

                  Section 10.04.    Notices etc., to Indenture Trustee,  Securities Administrator,  Issuing Entity
                                    and Rating Agencies.

                  Any request, demand,  authorization,  direction, notice, consent, waiver or Act of Noteholders or
other  documents  provided  or  permitted  by this  Indenture  shall be in  writing  and if such  request,  demand,
authorization,  direction,  notice, consent, waiver or act of Noteholders is to be made upon, given or furnished to
or filed with:

                           (i)      the Indenture  Trustee or the Securities  Administrator by any Noteholder or by
                  the Issuing Entity shall be sufficient for every purpose hereunder if made,  given,  furnished or
                  filed  in  writing  to or with the  Indenture  Trustee  or the  Securities  Administrator  at the
                  Corporate Trust Office.  The Indenture  Trustee or the Securities  Administrator,  as applicable,
                  shall promptly transmit any notice received by it from the Noteholders to the Issuing Entity; or

                           (ii)     the Issuing Entity by the Indenture  Trustee,  the Securities  Administrator or
                  by any  Noteholder  shall be  sufficient  for every  purpose  hereunder  if in writing and mailed
                  first-class,  postage prepaid to the Issuing Entity addressed to: Newcastle  Mortgage  Securities
                  Trust  2007-1,  in care of Wilmington  Trust  Company,  Rodney  Square  North,  1100 North Market
                  Street, Wilmington, Delaware 19890-0001,  Attention: Corporate Trust Administration,  with a copy
                  to  Newcastle  Investment  Corp.,  1345  Avenue  of the  Americas,  New  York,  New  York  10105,
                  Attention:  Debra Hess, or at any other address previously  furnished in writing to the Indenture
                  Trustee  and the  Securities  Administrator  by the Issuing  Entity.  The  Issuing  Entity  shall
                  promptly  transmit any notice  received by it from the  Noteholders to the Indenture  Trustee and
                  the Securities Administrator.

                  Notices  required  to be given to the  Rating  Agencies  by the  Issuing  Entity,  the  Indenture
Trustee,  the  Securities  Administrator  or the Owner  Trustee  shall be in writing,  mailed  first-class  postage
pre-paid,  to (i) in the case of Moody's, at the following address:  Moody's Investors Service,  Inc.,  Residential
Mortgage  Monitoring  Department,  99 Church  Street,  New York, New York 10007 and (ii) in the case of S&P, at the
following  address:  Standard & Poor's, 55 Water Street,  41st Floor, New York, New York 10041,  Attention of Asset
Backed  Surveillance  Department;  or as to each of the foregoing,  at such other address as shall be designated by
written notice to the other parties.

                  Section 10.05.    Notices to Noteholders; Waiver.

                  Where this  Indenture  provides  for notice to  Noteholders  of any event,  such notice  shall be
sufficiently  given (unless  otherwise herein expressly  provided) if in writing and mailed,  first-class,  postage
prepaid to each  Noteholder  affected by such event,  at such Person's  address as it appears on the Note Register,
not later  than the  latest  date,  and not  earlier  than the  earliest  date,  prescribed  for the giving of such
notice.  In any case where  notice to  Noteholders  is given by mail,  neither  the failure to mail such notice nor
any defect in any notice so mailed to any particular  Noteholder  shall affect the  sufficiency of such notice with
respect to other  Noteholders,  and any notice that is mailed in the manner herein  provided shall  conclusively be
presumed to have been duly given regardless of whether such notice is in fact actually received.

                  Where this Indenture  provides for notice in any manner,  such notice may be waived in writing by
any Person  entitled  to receive  such  notice,  either  before or after the event,  and such  waiver  shall be the
equivalent of such notice.  Waivers of notice by Noteholders  shall be filed with the Securities  Administrator but
such filing shall not be a condition precedent to the validity of any action taken in reliance upon such a waiver.

                  In case,  by reason of the  suspension  of regular  mail  service  as a result of a strike,  work
stoppage or similar  activity,  it shall be impractical to mail notice of any event to Noteholders when such notice
is  required to be given  pursuant to any  provision  of this  Indenture,  then any manner of giving such notice as
shall be satisfactory to the Securities Administrator shall be deemed to be a sufficient giving of such notice.

                  Where this  Indenture  provides  for notice to the Rating  Agencies,  failure to give such notice
shall not  affect  any  other  rights  or  obligations  created  hereunder,  and  shall not under any  circumstance
constitute an Event of Default.

                  Section 10.06.    Conflict with Trust Indenture Act.

                  If any provision  hereof  limits,  qualifies or conflicts with another  provision  hereof that is
required to be included in this  Indenture by any of the  provisions  of the TIA,  such  required  provision  shall
control.

                  The  provisions  of TIA §§ 310  through  317 that  impose  duties on any  Person  (including  the
provisions  automatically  deemed  included herein unless  expressly  excluded by this Indenture) are a part of and
govern this Indenture, whether or not physically contained herein.

                  Section 10.07.    Effect of Headings.

                  The  Article  and  Section  headings  herein  are for  convenience  only and shall not affect the
construction hereof.

                  Section 10.08.    Successors and Assigns.

                  All covenants and  agreements  in this  Indenture and the Notes by the Issuing  Entity shall bind
its  successors  and  assigns,  whether so  expressed  or not.  All  agreements  of the  Indenture  Trustee and the
Securities Administrator in this Indenture shall bind its successors, co-trustees and agents.

                  Section 10.09.    Separability.

                  In  case  any  provision  in  this  Indenture  or in the  Notes  shall  be  invalid,  illegal  or
unenforceable,  the validity,  legality,  and  enforceability  of the remaining  provisions shall not in any way be
affected or impaired thereby.

                  Section 10.10.    Third Party Beneficiaries.

                  The Master  Servicer  shall be a third party  beneficiary  for  purposes of Section  6.07 of this
Indenture.  The Swap Provider  shall be an express  third-party  beneficiary of this Agreement to the extent of its
express  rights to receive any payments  under this  Agreement  or any other  express  rights of the Swap  Provider
explicitly  stated in this  Agreement,  and shall have the right to enforce such rights under this  Agreement as if
it were a party hereto.

                  Section 10.11.    Legal Holidays.

                  In any case  where  the date on which  any  payment  is due shall  not be a  Business  Day,  then
(notwithstanding  any other  provision of the Notes or this  Indenture)  payment need not be made on such date, but
may be made on the next  succeeding  Business  Day with the same  force and  effect as if made on the date on which
nominally due, and no interest shall accrue for the period from and after any such nominal date.

                  Section 10.12.    GOVERNING LAW.

                  THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW YORK,  WITHOUT
REFERENCE  TO ITS  CONFLICT  OF LAW  PROVISIONS  (OTHER  THAN  SECTIONS  5-1401 AND 5-1402 OF THE NEW YORK  GENERAL
OBLIGATIONS  LAWS),  AND THE  OBLIGATIONS,  RIGHTS AND REMEDIES OF THE PARTIES  HEREUNDER  SHALL BE  DETERMINED  IN
ACCORDANCE WITH SUCH LAWS.

                  Section 10.13.    Counterparts.

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

                  Section 10.14.    Recording of Indenture.

                  If this  Indenture is subject to recording in any  appropriate  public  recording  offices,  such
recording is to be effected by the Issuing  Entity and at its expense  accompanied  by an Opinion of Counsel at its
expense  (which may be counsel  to the  Indenture  Trustee or the  Securities  Administrator  or any other  counsel
reasonably  acceptable  to the  Indenture  Trustee  and the  Securities  Administrator)  to the  effect  that  such
recording is necessary  either for the protection of the  Noteholders or any other Person secured  hereunder or for
the enforcement of any right or remedy granted to the Indenture Trustee under this Indenture.

                  Section 10.15.    Issuing Entity Obligation.

                  No  recourse  may be taken,  directly  or  indirectly,  with  respect to the  obligations  of the
Issuing Entity,  the Owner Trustee,  the Indenture  Trustee or the Securities  Administrator  on the Notes or under
this Indenture or any certificate or other writing delivered in connection  herewith or therewith,  against (i) the
Indenture Trustee,  the Securities  Administrator or the Owner Trustee in its individual  capacity,  (ii) any owner
of a  beneficial  interest  in the  Issuing  Entity or (iii)  any  partner,  owner,  beneficiary,  agent,  officer,
director,  employee or agent of the Indenture  Trustee,  the Securities  Administrator  or the Owner Trustee in its
individual  capacity,  any holder of a beneficial interest in the Issuing Entity, the Owner Trustee,  the Indenture
Trustee or the Securities  Administrator  or of any successor or assign of any of them in its individual  capacity,
except as any such  Person  may have  expressly  agreed  (it  being  understood  that the  Indenture  Trustee,  the
Securities  Administrator  and the Owner Trustee have no such obligations in their individual  capacity) and except
that any such partner,  owner or beneficiary  shall be fully liable,  to the extent provided by applicable law, for
any unpaid  consideration  for stock,  unpaid capital  contribution or failure to pay any installment or call owing
to such  entity.  For all  purposes of this  Indenture,  in the  performance  of any duties or  obligations  of the
Issuing  Entity  hereunder,  the Owner  Trustee shall be subject to, and entitled to the benefits of, the terms and
provisions of Article VI, VII and VIII of the Trust Agreement.

                  Section 10.16.    No Petition.

                  The Indenture  Trustee and the Securities  Administrator,  by entering into this  Indenture,  and
each  Noteholder,  by accepting a Note,  hereby covenant and agree that they will not at any time prior to one year
from the date of  termination  hereof,  institute  against  the  Depositor  or the Issuing  Entity,  or join in any
institution  against  the  Depositor  or the  Issuing  Entity  of,  any  bankruptcy,  reorganization,  arrangement,
insolvency or liquidation  proceedings,  or other  proceedings  under any United States federal or state bankruptcy
or similar law in  connection  with any  obligations  relating  to the Notes,  this  Indenture  or any of the Basic
Documents, except for filing proofs of claim.

                  Section 10.17.    Inspection.

                  The Issuing Entity agrees that, at its expense,  on reasonable prior notice,  it shall permit any
representative  of the  Indenture  Trustee or the  Securities  Administrator,  during the Issuing  Entity's  normal
business hours, to examine all the books of account,  records,  reports and other papers of the Issuing Entity,  to
make  copies  and  extracts  therefrom,  to  cause  such  books  to be  audited  by  Independent  certified  public
accountants,  and to discuss the  Issuing  Entity's  affairs,  finances  and  accounts  with the  Issuing  Entity's
officers,  employees,  and Independent  certified public accountants,  all at such reasonable times and as often as
may be reasonably  requested.  The Indenture Trustee or the Securities  Administrator,  as applicable,  shall cause
its  representatives  to hold in confidence all such information except to the extent disclosure may be required by
law (and all reasonable  applications for confidential  treatment are unavailing) and except to the extent that the
Indenture Trustee may reasonably determine that such disclosure is consistent with its obligations hereunder.

                  Section 10.18.    No Recourse to Owner Trustee.

                  It is expressly  understood  and agreed by the parties hereto that (a) this Indenture is executed
and  delivered by  Wilmington  Trust  Company,  not  individually  or  personally,  but solely as Owner  Trustee of
Newcastle  Mortgage  Securities Trust 2007-1,  in the exercise of the powers and authority  conferred and vested in
it, (b) each of the  representations,  undertakings and agreements herein made on the part of the Issuing Entity is
made and intended not as personal  representations,  undertakings and agreements by Wilmington Trust Company but is
made and  intended for the purpose for binding  only the Issuing  Entity,  (c) nothing  herein  contained  shall be
construed as creating any  liability of  Wilmington  Trust  Company,  individually  or  personally,  to perform any
covenant either expressed or implied  contained herein,  all such liability,  if any, being expressly waived by the
parties hereto and by any Person  claiming by,  through or under the parties hereto and (d) under no  circumstances
shall  Wilmington  Trust  Company be  personally  liable for the  payment of any  indebtedness  or  expenses of the
Issuing  Entity or be liable for the breach or failure of any  obligation,  representation,  warranty  or  covenant
made or undertaken by the Issuing Entity under this Indenture or any other related documents.

                  Section 10.19.    Proofs of Claim.

                  The  Indenture  Trustee is  authorized to file such proofs of claim and other papers or documents
as may be  necessary or advisable in order to have the claims of the  Indenture  Trustee  (including  any claim for
the  reasonable  compensation,  expenses,  disbursements  and  advances of the  Indenture  Trustee,  its agents and
counsel) and the  Noteholders  allowed in any  judicial  proceedings  relative to the Issuing  Entity (or any other
obligor upon the Notes),  its  creditors or its  property and shall be entitled and  empowered to collect,  receive
and  distribute  any money or other  property  payable or  deliverable  on any such claims and any custodian in any
such judicial  proceeding is hereby  authorized by each Noteholder to make such payments to the Indenture  Trustee,
as  administrative  expenses  associated  with any such  proceeding,  and, in the event that the Indenture  Trustee
shall  consent to the making of such  payments  directly  to the  Noteholder  to pay to the  Indenture  Trustee any
amount due to it for the reasonable  compensation,  expenses,  disbursements and advances of the Indenture Trustee,
its agents and counsel,  and any other  amounts due to the  Indenture  Trustee  under  Section 6.07 hereof.  To the
extent that the payment of any such  compensation,  expenses,  disbursements and advances of the Indenture Trustee,
its agents and  counsel,  and any other  amounts due the  Indenture  Trustee  under  Section 6.07 hereof out of the
estate in any such proceeding,  shall be denied for any reason,  payment of the same shall be secured by a Lien on,
and shall be paid out of, any and all  distributions,  dividends,  money,  securities and other properties that the
Noteholders  may be  entitled  to  receive  in  such  proceeding  whether  in  liquidation  or  under  any  plan of
reorganization  or arrangement or otherwise.  Nothing herein  contained  shall be deemed to authorize the Indenture
Trustee  to  authorize  or consent to or accept or adopt on behalf of any  Noteholder  any plan of  reorganization,
arrangement,  adjustment or composition  affecting the Noteholder of the rights of any  Noteholder  thereof,  or to
authorize the Indenture Trustee to vote in respect of the claim of any Noteholder in any such proceeding.

                  IN WITNESS WHEREOF,  the Issuing Entity,  the Indenture Trustee and the Securities  Administrator
have caused their names to be signed hereto by their respective  officers thereunto duly authorized,  all as of the
day and year first above written.

                                                     NEWCASTLE MORTGAGE SECURITIES TRUST, 2007-1, as Issuing Entity

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

                                                      By:  ______________________________________________
                                                           Name:
                                                           Title:

                                                     WELLS FARGO BANK, N.A., as Securities Administrator

                                                      By:  ______________________________________________
                                                           Name:
                                                           Title:

                                                     THE BANK OF NEW YORK, as Indenture Trustee

                                                      By:  ______________________________________________
                                                           Name:
                                                           Title:

For purposes of Section 6.07:

WELLS FARGO BANK, N.A., as Master Servicer

By:  ______________________________________________
Name:
Title:

STATE OF NEW YORK         )
                          )   ss.:
COUNTY OF NEW YORK        )

         On this ___ day of July, 2007, before me personally  appeared  _________ to me known, who being by me duly
sworn,  did depose and say,  that (s)he is  _____________  and  _______________  to me known,  who being by me duly
sworn,  did depose and say, that (s)he is a  _________________  of the Indenture  Trustee,  one of the corporations
described in and which executed the above instrument; and that he signed his name thereto by like order.

                                                             ______________________________________________
                                                             Notary Public

                                                             NOTARY PUBLIC

[NOTARIAL SEAL]

STATE OF NEW YORK         )
                          )   ss.:
COUNTY OF NEW YORK        )

         On this ___ day of July, 2007, before me personally  appeared  _________ to me known, who being by me duly
sworn,  did depose and say,  that (s)he is  _____________  and  _______________  to me known,  who being by me duly
sworn,  did  depose  and say,  that  (s)he  is a  _________________  of the  Securities  Administrator,  one of the
corporations  described  in and which  executed the above  instrument;  and that he signed his name thereto by like
order.

                                                             ______________________________________________
                                                             Notary Public

                                                             NOTARY PUBLIC

[NOTARIAL SEAL]

STATE OF DELAWARE           )
                            )   ss.:
COUNTY OF NEW CASTLE        )

         On this ___ day of July, 2007,  before me personally  appeared  _______________  to me known, who being by
me duly sworn,  did depose and say, that (s)he is a Financial  Services  Officer of the Owner  Trustee,  one of the
entities described in and which executed the above instrument; and that she signed her name thereto by like order.

                                                             ______________________________________________
                                                             Notary Public

                                                             NOTARY PUBLIC

[NOTARIAL SEAL]

                                                    EXHIBIT A-1

                                               FORM OF CLASS A NOTES

UNLESS  THIS NOTE IS  PRESENTED  BY AN  AUTHORIZED  REPRESENTATIVE  OF THE  DEPOSITORY  TRUST  COMPANY,  A NEW YORK
CORPORATION  ("DTC"),  TO THE SECURITIES  ADMINISTRATOR  OR ITS AGENT FOR  REGISTRATION OF TRANSFER,  EXCHANGE,  OR
PAYMENT,  AND ANY NOTE ISSUED IS  REGISTERED  IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER  ENTITY AS IS  REQUESTED
BY AN AUTHORIZED  REPRESENTATIVE OF DTC), ANY TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE HOLDER OF THIS NOTE OR  BENEFICIAL  OWNER OF ANY  INTEREST  HEREIN  WILL BE DEEMED TO  REPRESENT  TO ONE OF THE
REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE INDENTURE.

THIS NOTE IS A  NON-RECOURSE  OBLIGATION  OF THE  ISSUER,  AND IS LIMITED IN RIGHT OF PAYMENT TO AMOUNTS  AVAILABLE
FROM THE TRUST AS PROVIDED IN THE INDENTURE  REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE  PERSONALLY  LIABLE FOR
PAYMENTS ON THIS NOTE.

PRINCIPAL OF THIS NOTE IS PAYABLE  OVER TIME AS SET FORTH  HEREIN.  ACCORDINGLY,  THE  OUTSTANDING  NOTE BALANCE OF
THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

                                    NEWCASTLE MORTGAGE SECURITIES TRUST 2007-1
                                         ASSET-BACKED NOTES, SERIES 2007-1
                                    CLASS [1-A-1] [2-A-1][2-A-2][2-A-3][2-A-4]

AGGREGATE NOTE BALANCE:                                                NOTE RATE: Variable
$[__]

INITIAL NOTE BALANCE OF THIS BOND: $[__]                               BOND NO. 1

PERCENTAGE INTEREST: 100%                                              CUSIP NO. [__]

         Newcastle Mortgage  Securities Trust 2007-1 (the "Issuing Entity"),  a Delaware statutory trust, for value
received,  hereby  promises to pay to Cede & Co. or  registered  assigns,  the  Aggregate  Note  Balance in monthly
installments  on the  twenty-fifth  day of each month or, if such day is not a Business  Day,  the next  succeeding
Business Day (each a "Payment  Date"),  commencing in July 2007 and ending on or before the Payment Date  occurring
on the Final Stated  Maturity Date and to pay interest on the Note Balance of this Note (this  "Note")  outstanding
from time to time as provided below.

         This Note is one of a duly authorized  issue of the Issuing  Entity's  Asset-Backed  Notes,  Series 2007-1
(the "Notes"),  issued under an Indenture  dated as of July 12, 2007 (the  "Indenture"),  among the Issuing Entity,
Wells  Fargo  Bank,  N.A.  (the  "Securities   Administrator",   which  term  includes  any  successor   Securities
Administrator  under the  Indenture")  and The Bank of New York,  as indenture  trustee (the  "Indenture  Trustee",
which term includes any successor  Indenture  Trustee under the  Indenture),  to which Indenture and all indentures
supplemental  thereto  reference is hereby made for a statement of the respective  rights thereunder of the Issuing
Entity, the Indenture Trustee,  the Securities  Administrator and the Holders of the Notes and the terms upon which
the Notes are to be  authenticated  and  delivered.  All terms used in this Note which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

         Payments of principal  and interest on this Note will be made on each  Payment Date to the  Noteholder  of
record as of the related  Record Date.  The "Note  Balance" of a Note as of any date of  determination  is equal to
the initial Note Balance  thereof,  reduced by the  aggregate of all amounts  previously  paid with respect to such
Note on account of principal and the aggregate  amount of cumulative  Realized Losses allocated to such Note on all
prior Payment Dates.

         The  principal of, and interest on, this Note are due and payable as described in the  Indenture,  in such
coin or  currency of the United  States of America as at the time of payment is legal  tender for payment of public
and  private  debts.  All  payments  made by the Issuing  Entity  with  respect to this Note shall be equal to this
Note's pro rata share of the  aggregate  payments on all Notes of the same Class as described  above,  and shall be
applied as between interest and principal as provided in the Indenture.

         All principal and interest  accrued on the Notes,  if not  previously  paid,  will become  finally due and
payable at the Final Stated Maturity Date.

         The Notes are subject to redemption in whole,  but not in part, by the Majority  Certificateholder  on any
Payment Date on or after the Payment Date on which the aggregate  Stated  Principal  Balance of the Mortgage  Loans
as of the end of the prior Due Period is less than or equal to 10% of the  aggregate  Stated  Principal  Balance of
the Mortgage Loans as of Cut-off Date.

         The Issuing Entity shall not be liable upon the  indebtedness  evidenced by the Notes except to the extent
of amounts  available  from the Trust Estate which  constitutes  security for the payment of the Notes.  The assets
included in the Trust  Estate will be the sole source of  payments  on the Notes,  and each Holder  hereof,  by its
acceptance of this Note,  agrees that (i) such Note will be limited in right of payment to amounts  available  from
the Trust Estate as provided in the  Indenture  and (ii) such Holder shall have no recourse to the Issuing  Entity,
the Owner Trustee,  the Indenture Trustee,  the Securities  Administrator,  the Seller, the Originator,  the Master
Servicer,  the Servicer or any of their respective  affiliates,  or to the assets of any of the foregoing entities,
except the assets of the  Issuing  Entity  pledged to secure the Notes  pursuant  to the  Indenture  and the rights
conveyed to the Issuing Entity under the Indenture.

         Any payment of  principal  or interest  payable on this Note which is  punctually  paid on the  applicable
Payment  Date shall be paid to the Person in whose name such Note is  registered  at the close of  business  on the
Record Date for such Payment Date by check mailed to such  person's  address as it appears in the Note  Register on
such Record Date,  except for the final  installment  of principal and interest  payable with respect to such Note,
which shall be payable as provided below.  Notwithstanding  the foregoing,  upon written  request with  appropriate
instructions  by the Holder of this Note  delivered to the  Securities  Administrator  at least five  Business Days
prior to the Record Date,  any payment of principal or interest,  other than the final  installment of principal or
interest,  shall be made by wire  transfer  to an account in the  United  States  designated  by such  Holder.  All
scheduled  reductions  in the Note  Balance of a Note (or one or more  predecessor  Notes)  effected by payments of
principal  made on any Payment  Date shall be binding upon all Holders of this Note and of any note issued upon the
registration of transfer thereof or in exchange  therefor or in lieu thereof,  whether or not such payment is noted
on such Note.  The final  payment  of this Note shall be payable  upon  presentation  and  surrender  thereof on or
after the Payment  Date  thereof at the office or agency of the Issuing  Entity  maintained  by it for such purpose
pursuant to Section 3.02 of the Indenture.

         Subject to the foregoing  provisions,  each Note  delivered  under the  Indenture,  upon  registration  of
transfer  of or in  exchange  for or in lieu of any other  Note  shall  carry the  right to  unpaid  principal  and
interest that were carried by such other Note.

         If an Event of Default as defined in the  Indenture  shall  occur and be  continuing  with  respect to the
Notes,  the Notes may become or be  declared  due and  payable in the  manner and with the effect  provided  in the
Indenture.  If any such  acceleration  of maturity occurs prior to the payment of the entire unpaid Note Balance of
the Notes,  the amount  payable to the Holder of this Note will be equal to the sum of the unpaid  Note  Balance of
the Notes,  together  with  accrued and unpaid  interest  thereon as  described  in the  Indenture.  The  Indenture
provides  that,  notwithstanding  the  acceleration  of the  maturity  of the Notes,  under  certain  circumstances
specified  therein,  all amounts  collected as proceeds of the Trust Estate  securing the Notes or otherwise  shall
continue to be applied to payments of principal  of and interest on the Notes as if they had not been  declared due
and payable.

         The failure to pay any Class  Interest  Carryover  Shortfall  at any time when funds are not  available to
make such payment as provided in the Indenture shall not constitute an Event of Default under the Indenture.

         The Holder of this Note or  Beneficial  Owner of any interest  herein is deemed to  represent  that either
(1) it is not acquiring  this Note with Plan Assets or (2) (A) the  acquisition,  holding and transfer of this Note
will not give rise to a nonexempt  prohibited  transaction  under  Section 406 of ERISA or Section 4975 of the Code
and (B) this Note is rated  investment  grade or better and such person believes that this Note is properly treated
as indebtedness  without  substantial  equity features for purposes of the DOL Regulations,  and agrees to so treat
this  Note.  Alternatively,  regardless  of the  rating of this  Note,  such  person  may  provide  the  Securities
Administrator  with an opinion of  counsel,  which  opinion of counsel  will not be at the  expense of the  Issuing
Entity,  the Seller, the Originator,  any Underwriter,  the Owner Trustee,  the Indenture  Trustee,  the Securities
Administrator,  the Master  Servicer,  the Servicer or any successor  servicer  which opines that the  acquisition,
holding and transfer of this Note or interest  herein is permissible  under  applicable law, will not constitute or
result in a  non-exempt  prohibited  transaction  under ERISA or Section  4975 of the Code and will not subject the
Issuing Entity,  the Seller,  the Originator,  the Depositor,  any  Underwriter,  the Owner Trustee,  the Indenture
Trustee,  the  Securities  Administrator,  the Master  Servicer,  the  Servicer  or any  successor  servicer to any
obligation in addition to those undertaken in the Indenture or other Operative Agreements.

         As provided in the Indenture and subject to certain  limitations  therein set forth,  the transfer of this
Note may be registered on the Note Register of the Issuing  Entity.  Upon  surrender for  registration  of transfer
of, or  presentation of a written  instrument of transfer for, this Note at the office or agency  designated by the
Issuing Entity pursuant to the Indenture,  accompanied by proper  instruments of assignment in form satisfactory to
the  Securities  Administrator,  one or more new  Notes of any  authorized  denominations  and of a like  aggregate
initial Note Balance, will be issued to the designated transferee or transferees.

         Prior to the due  presentment  for  registration  of  transfer  of this  Note,  the  Issuing  Entity,  the
Indenture Trustee,  the Securities  Administrator and any agent of the Issuing Entity, the Indenture Trustee or the
Securities  Administrator  may treat the Person in whose name this Note is registered as the owner of such Note (i)
on the  applicable  Record Date for the purpose of making  payments and interest of such Note and (ii) on any other
date for all other purposes whatsoever,  as the owner hereof,  whether or not this Note be overdue, and neither the
Issuing Entity, the Indenture Trustee,  the Securities  Administrator nor any such agent of the Issuing Entity, the
Indenture Trustee or the Securities Administrator shall be affected by notice to the contrary.

         The  Indenture  permits,  with certain  exceptions  as therein  provided,  the  amendment  thereof and the
modification  of the rights and  obligations of the Issuing Entity and the rights of the Holders of the Notes under
the  Indenture  at any  time by the  Issuing  Entity  and the  Holders  of a  majority  of all  Notes  at the  time
outstanding.  The  Indenture  also  contains  provisions  permitting  the Holders of Notes  representing  specified
percentages  of the  aggregate  Note  Balance of the Notes on behalf of the Holders of all the Notes,  to waive any
past Default  under the Indenture and its  consequences.  Any such waiver by the Holder,  at the time of the giving
thereof,  of this Note (or any one or more  predecessor  Notes) shall bind the Holder of every Note issued upon the
registration of transfer  hereof or in exchange  hereof or in lieu hereof,  whether or not notation of such consent
or waiver is made upon such Note.  The Indenture  also permits the Issuing  Entity,  the Indenture  Trustee and the
Securities  Administrator  to amend or waive certain terms and  conditions  set forth in the Indenture  without the
consent of the Holders of the Notes issued thereunder.

         Initially,  this  Note  will be  registered  in the name of Cede & Co. as  nominee  of DTC,  acting in its
capacity as the Depository for this Note.  This Note will be delivered by the clearing agency in  denominations  as
provided in the Indenture and subject to certain  limitations  therein set forth.  This Note is exchangeable  for a
like  aggregate  initial Note Balance of Notes of different  authorized  denominations,  as requested by the Holder
surrendering same.

         Unless the  Certificate  of  Authentication  hereon has been executed by the Securities  Administrator  by
manual  signature,  this Note shall not be entitled to any benefit under the  Indenture,  or be valid or obligatory
for any purpose.

         AS PROVIDED  IN THE  INDENTURE,  THIS NOTE AND THE  INDENTURE  CREATING  THIS NOTE SHALL BE  CONSTRUED  IN
ACCORDANCE  WITH,  AND  GOVERNED  BY, THE LAWS OF THE STATE OF NEW YORK  APPLICABLE  TO  AGREEMENTS  MADE AND TO BE
PERFORMED THEREIN.

         IN WITNESS  WHEREOF,  the Issuing  Entity has caused this  instrument  to be duly  executed by  Wilmington
Trust Company, not in its individual capacity but solely as Owner Trustee.

Dated: July ____, 2007

                                                     NEWCASTLE MORTGAGE SECURITIES TRUST 2007-1

                                                     BY:  WILMINGTON TRUST COMPANY, not in its individual capacity
                                                     but solely in its capacity as Owner Trustee

                                                      By: ___________________________________________
                                                                     Authorized Signatory

                             SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

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

WELLS FARGO BANK, N.A.,
as Securities Administrator

     By: __________________________________________________
                       Authorized Signatory

                                                   ABBREVIATIONS

         The following  abbreviations,  when used in the inscription on the face of the Note, shall be construed as
though they were written out in full according to applicable laws or regulations:

                   TEN COM                   --      as tenants in common
                   TEN ENT                   --      as tenants by the entireties
                   JT TEN                    --      as joint tenants with right of survivorship and not as
                                                     tenants in common
      UNIF GIFT MIN ACT                      --      __________ Custodian
                                                     ________________________________________
                                                     (Cust)                          (Minor)

                                                     under Uniform Gifts to Minor Act
                                                     ________________________________________
                                                                                     (State)

                  ADDITIONAL ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST.

                                                    ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

                                     PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING
                                                NUMBER OF ASSIGNEE:

                    ___________________________________________________________________________

                    ___________________________________________________________________________

                    ___________________________________________________________________________
                   (Please print or typewrite name and address, including zip code, of assignee)

the   within   Note   and   all   rights   thereunder,    and   hereby   irrevocably   constitutes   and   appoints
_________________________________  attorney to transfer said Note on the books kept for registration  thereof, with
full power of substitution in the premises.

Dated: ________________________________     ________________________________

Signature Guaranteed by __________________________________

         NOTICE:  The  signature(s) to this assignment must correspond with the name as it appears upon the face of
the within Note in every  particular,  without  alteration or  enlargement or any change  whatsoever.  Signature(s)
must be  guaranteed  by a commercial  bank or by a member firm of the New York Stock  Exchange or another  national
securities exchange. Notarized or witnessed signatures are not acceptable.

                                                    EXHIBIT A-2

                                               FORM OF CLASS M NOTES

UNLESS  THIS NOTE IS  PRESENTED  BY AN  AUTHORIZED  REPRESENTATIVE  OF THE  DEPOSITORY  TRUST  COMPANY,  A NEW YORK
CORPORATION  ("DTC"),  TO THE SECURITIES  ADMINISTRATOR  OR ITS AGENT FOR  REGISTRATION OF TRANSFER,  EXCHANGE,  OR
PAYMENT,  AND ANY NOTE ISSUED IS  REGISTERED  IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER  ENTITY AS IS  REQUESTED
BY AN AUTHORIZED  REPRESENTATIVE OF DTC), ANY TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE HOLDER OF THIS NOTE OR  BENEFICIAL  OWNER OF ANY  INTEREST  HEREIN  WILL BE DEEMED TO  REPRESENT  TO ONE OF THE
REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE INDENTURE.

THIS NOTE IS A  NON-RECOURSE  OBLIGATION  OF THE  ISSUER,  AND IS LIMITED IN RIGHT OF PAYMENT TO AMOUNTS  AVAILABLE
FROM THE TRUST AS PROVIDED IN THE INDENTURE  REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE  PERSONALLY  LIABLE FOR
PAYMENTS ON THIS NOTE.

PRINCIPAL OF THIS NOTE IS PAYABLE  OVER TIME AS SET FORTH  HEREIN.  ACCORDINGLY,  THE  OUTSTANDING  NOTE BALANCE OF
THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

THIS NOTE IS SUBORDINATE TO THE CLASS A NOTES TO THE EXTENT DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

                                    NEWCASTLE MORTGAGE SECURITIES TRUST 2007-1
                                         ASSET-BACKED NOTES, SERIES 2007-1
                    CLASS [M-1][M-2][M-3][M-4][M-5][M-6][M-7-A][M-7-B][M-8-A][M-8-B][M-9][M-10]

AGGREGATE NOTE BALANCE:                                                NOTE RATE: Variable
$

INITIAL NOTE BALANCE OF THIS BOND: $                                   BOND NO.

PERCENTAGE INTEREST: 100%                                              CUSIP NO.

         Newcastle Mortgage  Securities Trust 2007-1 (the "Issuing Entity"),  a Delaware statutory trust, for value
received,  hereby  promises to pay to Cede & Co. or  registered  assigns,  the  Aggregate  Note  Balance in monthly
installments  on the  twenty-fifth  day of each month or, if such day is not a Business  Day,  the next  succeeding
Business Day (each a "Payment  Date"),  commencing in July 2007 and ending on or before the Payment Date  occurring
on the Final Stated  Maturity Date and to pay interest on the Note Balance of this Note (this  "Note")  outstanding
from time to time as provided below.

         This Note is one of a duly authorized  issue of the Issuing  Entity's  Asset-Backed  Notes,  Series 2007-1
(the "Notes"),  issued under an Indenture  dated as of July 12, 2007 (the  "Indenture"),  among the Issuing Entity,
Wells  Fargo  Bank,  N.A.  (the  "Securities   Administrator",   which  term  includes  any  successor   Securities
Administrator  under the  Indenture")  and The Bank of New York,  as indenture  trustee (the  "Indenture  Trustee",
which term includes any successor  Indenture  Trustee under the  Indenture),  to which Indenture and all indentures
supplemental  thereto  reference is hereby made for a statement of the respective  rights thereunder of the Issuing
Entity, the Indenture Trustee,  the Securities  Administrator and the Holders of the Notes and the terms upon which
the Notes are to be  authenticated  and  delivered.  All terms used in this Note which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

         Payments of principal  and interest on this Note will be made on each  Payment Date to the  Noteholder  of
record as of the related  Record Date.  The "Note  Balance" of a Note as of any date of  determination  is equal to
the initial Note Balance  thereof,  reduced by the  aggregate of all amounts  previously  paid with respect to such
Note on account of principal and the aggregate  amount of cumulative  Realized Losses allocated to such Note on all
prior Payment Dates.

         The  principal of, and interest on, this Note are due and payable as described in the  Indenture,  in such
coin or  currency of the United  States of America as at the time of payment is legal  tender for payment of public
and  private  debts.  All  payments  made by the Issuing  Entity  with  respect to this Note shall be equal to this
Note's pro rata share of the  aggregate  payments on all Notes of the same Class as described  above,  and shall be
applied as between interest and principal as provided in the Indenture.

         All principal and interest  accrued on the Notes,  if not  previously  paid,  will become  finally due and
payable at the Final Stated Maturity Date.

         The Notes are subject to redemption in whole,  but not in part, by the Majority  Certificateholder  on any
Payment Date on or after the Payment Date on which the aggregate  Stated  Principal  Balance of the Mortgage  Loans
as of the end of the prior Due Period is less than or equal to 10% of the  aggregate  Stated  Principal  Balance of
the Mortgage Loans as of Cut-off Date.

         The Issuing Entity shall not be liable upon the  indebtedness  evidenced by the Notes except to the extent
of amounts  available  from the Trust Estate which  constitutes  security for the payment of the Notes.  The assets
included in the Trust  Estate will be the sole source of  payments  on the Notes,  and each Holder  hereof,  by its
acceptance of this Note,  agrees that (i) such Note will be limited in right of payment to amounts  available  from
the Trust Estate as provided in the  Indenture  and (ii) such Holder shall have no recourse to the Issuing  Entity,
the Owner Trustee,  the Indenture Trustee,  the Securities  Administrator,  the Seller, the Originator,  the Master
Servicer,  the Servicer or any of their respective  affiliates,  or to the assets of any of the foregoing entities,
except the assets of the  Issuing  Entity  pledged to secure the Notes  pursuant  to the  Indenture  and the rights
conveyed to the Issuing Entity under the Indenture.

         Any payment of  principal  or interest  payable on this Note which is  punctually  paid on the  applicable
Payment  Date shall be paid to the Person in whose name such Note is  registered  at the close of  business  on the
Record Date for such Payment Date by check mailed to such  person's  address as it appears in the Note  Register on
such Record Date,  except for the final  installment  of principal and interest  payable with respect to such Note,
which shall be payable as provided below.  Notwithstanding  the foregoing,  upon written  request with  appropriate
instructions  by the Holder of this Note  delivered to the  Securities  Administrator  at least five  Business Days
prior to the Record Date,  any payment of principal or interest,  other than the final  installment of principal or
interest,  shall be made by wire  transfer  to an account in the  United  States  designated  by such  Holder.  All
scheduled  reductions  in the Note  Balance of a Note (or one or more  predecessor  Notes)  effected by payments of
principal  made on any Payment  Date shall be binding upon all Holders of this Note and of any note issued upon the
registration of transfer thereof or in exchange  therefor or in lieu thereof,  whether or not such payment is noted
on such Note.  The final  payment  of this Note shall be payable  upon  presentation  and  surrender  thereof on or
after the Payment  Date  thereof at the office or agency of the Issuing  Entity  maintained  by it for such purpose
pursuant to Section 3.02 of the Indenture.

         Subject to the foregoing  provisions,  each Note  delivered  under the  Indenture,  upon  registration  of
transfer  of or in  exchange  for or in lieu of any other  Note  shall  carry the  right to  unpaid  principal  and
interest that were carried by such other Note.

         If an Event of Default as defined in the  Indenture  shall  occur and be  continuing  with  respect to the
Notes,  the Notes may become or be  declared  due and  payable in the  manner and with the effect  provided  in the
Indenture.  If any such  acceleration  of maturity occurs prior to the payment of the entire unpaid Note Balance of
the Notes,  the amount  payable to the Holder of this Note will be equal to the sum of the unpaid  Note  Balance of
the Notes,  together  with  accrued and unpaid  interest  thereon as  described  in the  Indenture.  The  Indenture
provides  that,  notwithstanding  the  acceleration  of the  maturity  of the Notes,  under  certain  circumstances
specified  therein,  all amounts  collected as proceeds of the Trust Estate  securing the Notes or otherwise  shall
continue to be applied to payments of principal  of and interest on the Notes as if they had not been  declared due
and payable.

         The failure to pay any Class  Interest  Carryover  Shortfalls  at any time when funds are not available to
make such payment as provided in the Indenture shall not constitute an Event of Default under the Indenture.

         The Holder of this Note or  Beneficial  Owner of any interest  herein is deemed to  represent  that either
(1) it is not acquiring  this Note with Plan Assets or (2) (A) the  acquisition,  holding and transfer of this Note
will not give rise to a nonexempt  prohibited  transaction  under  Section 406 of ERISA or Section 4975 of the Code
and (B) this Note is rated  investment  grade or better and such person believes that this Note is properly treated
as indebtedness  without  substantial  equity features for purposes of the DOL Regulations,  and agrees to so treat
this  Note.  Alternatively,  regardless  of the  rating of this  Note,  such  person  may  provide  the  Securities
Administrator  with an opinion of  counsel,  which  opinion of counsel  will not be at the  expense of the  Issuing
Entity,  the Seller, the Originator,  any Underwriter,  the Owner Trustee,  the Indenture  Trustee,  the Securities
Administrator,  the Master  Servicer,  the Servicer or any successor  servicer  which opines that the  acquisition,
holding and transfer of this Note or interest  herein is permissible  under  applicable law, will not constitute or
result in a  non-exempt  prohibited  transaction  under ERISA or Section  4975 of the Code and will not subject the
Issuing Entity,  the Seller,  the Originator,  the Depositor,  any  Underwriter,  the Owner Trustee,  the Indenture
Trustee,  the  Securities  Administrator,  the Master  Servicer,  the  Servicer  or any  successor  servicer to any
obligation in addition to those undertaken in the Indenture or other Operative Agreements.

         As provided in the Indenture and subject to certain  limitations  therein set forth,  the transfer of this
Note may be registered on the Note Register of the Issuing  Entity.  Upon  surrender for  registration  of transfer
of, or  presentation of a written  instrument of transfer for, this Note at the office or agency  designated by the
Issuing Entity pursuant to the Indenture,  accompanied by proper  instruments of assignment in form satisfactory to
the  Securities  Administrator,  one or more new  Notes of any  authorized  denominations  and of a like  aggregate
initial Note Balance, will be issued to the designated transferee or transferees.

         Prior to the due  presentment  for  registration  of  transfer  of this  Note,  the  Issuing  Entity,  the
Indenture Trustee,  the Securities  Administrator and any agent of the Issuing Entity, the Indenture Trustee or the
Securities  Administrator  may treat the Person in whose name this Note is registered as the owner of such Note (i)
on the  applicable  Record Date for the purpose of making  payments and interest of such Note and (ii) on any other
date for all other purposes whatsoever,  as the owner hereof,  whether or not this Note be overdue, and neither the
Issuing Entity, the Indenture Trustee,  the Securities  Administrator nor any such agent of the Issuing Entity, the
Indenture Trustee or the Securities Administrator shall be affected by notice to the contrary.

         The  Indenture  permits,  with certain  exceptions  as therein  provided,  the  amendment  thereof and the
modification  of the rights and  obligations of the Issuing Entity and the rights of the Holders of the Notes under
the  Indenture  at any  time by the  Issuing  Entity  and the  Holders  of a  majority  of all  Notes  at the  time
outstanding.  The  Indenture  also  contains  provisions  permitting  the Holders of Notes  representing  specified
percentages  of the  aggregate  Note  Balance of the Notes on behalf of the Holders of all the Notes,  to waive any
past Default  under the Indenture and its  consequences.  Any such waiver by the Holder,  at the time of the giving
thereof,  of this Note (or any one or more  predecessor  Notes) shall bind the Holder of every Note issued upon the
registration of transfer  hereof or in exchange  hereof or in lieu hereof,  whether or not notation of such consent
or waiver is made upon such Note.  The Indenture  also permits the Issuing  Entity,  the Indenture  Trustee and the
Securities  Administrator  to amend or waive certain terms and  conditions  set forth in the Indenture  without the
consent of the Holders of the Notes issued thereunder.

         Initially,  this  Note  will be  registered  in the name of Cede & Co. as  nominee  of DTC,  acting in its
capacity as the Depository for this Note.  This Note will be delivered by the clearing agency in  denominations  as
provided in the Indenture and subject to certain  limitations  therein set forth.  This Note is exchangeable  for a
like  aggregate  initial Note Balance of Notes of different  authorized  denominations,  as requested by the Holder
surrendering same.

         Unless the  Certificate  of  Authentication  hereon has been executed by the Securities  Administrator  by
manual  signature,  this Note shall not be entitled to any benefit under the  Indenture,  or be valid or obligatory
for any purpose.

AS PROVIDED IN THE  INDENTURE,  THIS NOTE AND THE  INDENTURE  CREATING  THIS NOTE SHALL BE CONSTRUED IN  ACCORDANCE
WITH,  AND  GOVERNED  BY,  THE LAWS OF THE STATE OF NEW YORK  APPLICABLE  TO  AGREEMENTS  MADE AND TO BE  PERFORMED
THEREIN.

         IN WITNESS  WHEREOF,  the Issuing  Entity has caused this  instrument  to be duly  executed by  Wilmington
Trust Company, not in its individual capacity but solely as Owner Trustee.

Dated: July ____, 2007

                                                     NEWCASTLE MORTGAGE SECURITIES TRUST 2007-1

                                                     BY:  WILMINGTON TRUST COMPANY, not in its individual capacity
                                                     but solely in its capacity as Owner Trustee

                                                      By: _____________________________________________
                                                                     Authorized Signatory

                             SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

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

WELLS FARGO BANK, N.A.,
as Securities Administrator

     By: _____________________________________________
                     Authorized Signatory

                                                   ABBREVIATIONS

         The following  abbreviations,  when used in the inscription on the face of the Note, shall be construed as
though they were written out in full according to applicable laws or regulations:

                   TEN COM                   --      as tenants in common
                   TEN ENT                   --      as tenants by the entireties
                   JT TEN                    --      as  joint  tenants  with  right  of  survivorship  and  not as
                                                     tenants in common
      UNIF GIFT MIN ACT                      --      __________ Custodian
                                                     ________________________________________
                                                     (Cust)                          (Minor)

                                                     under Uniform Gifts to Minor Act
                                                     ________________________________________
                                                                                     (State)

                      ADDITIONAL ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST.

                                                    ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

         PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                                                     ASSIGNEE:

                    ___________________________________________________________________________

                    ___________________________________________________________________________

                    ___________________________________________________________________________
                   (Please print or typewrite name and address, including zip code, of assignee)

the   within   Note   and   all   rights   thereunder,    and   hereby   irrevocably   constitutes   and   appoints
_________________________________  attorney to transfer said Note on the books kept for registration  thereof, with
full power of substitution in the premises.

Dated: ________________________________     ________________________________

Signature Guaranteed by __________________________________

         NOTICE:  The  signature(s) to this assignment must correspond with the name as it appears upon the face of
the within Note in every  particular,  without  alteration or  enlargement or any change  whatsoever.  Signature(s)
must be  guaranteed  by a commercial  bank or by a member firm of the New York Stock  Exchange or another  national
securities exchange. Notarized or witnessed signatures are not acceptable.

                                                     EXHIBIT B

                                              MORTGAGE LOAN SCHEDULE

                                                     EXHIBIT C

                                           INTEREST RATE SWAP AGREEMENT

                                                     EXHIBIT D

                                            INTEREST RATE CAP AGREEMENT

                                                   APPENDIX A

                                                   DEFINITIONS

                  "Accepted Master Servicing  Practices":  With respect to any Mortgage Loan, as applicable,  either (x) those mortgage
master servicing  practices of prudent mortgage lending  institutions  which master service mortgage loans of the same type and quality
as such  Mortgage  Loan in the  jurisdiction  where the related  Mortgaged  Property is located to the extent  applicable to the Master
Servicer,  or (y) as  provided in Section  3.30 of the Sale and  Servicing  Agreement,  but in no event below the standard set forth in
clause (x).

                  "Accounts": Collectively, the Collection Account, the Note Account, the Swap Account and the Cap Account.

                   "Additional Form 10-D Disclosure":  As defined in Section 4.02(a)(i) of the Sale and Servicing Agreement.

                  "Adjustable-Rate  Mortgage  Loan":  A first lien Mortgage  Loan which  provides at any period during the life of such
loan for the  adjustment of the Mortgage Rate payable in respect  thereto.  The  Adjustable-Rate  Mortgage Loans are identified as such
on the Mortgage Loan Schedule.

                  "Adjusted  Net Mortgage  Rate":  With respect to any Mortgage Loan (or the related REO  Property),  as of any date of
determination,  a per annum rate of interest  equal to the  applicable  Mortgage Rate for such Mortgage Loan as of the first day of the
month  preceding  the month in which the related  Payment Date occurs minus the sum of (i) the Master  Servicing  Fee Rate and (ii) the
Servicing Fee Rate.

                  "Adjustment  Date":  With respect to each  Adjustable-Rate  Mortgage Loan, each adjustment date on which the Mortgage
Rate of such Mortgage Loan changes  pursuant to the related  Mortgage Note. The first  Adjustment Date following the Cut-off Date as to
each Adjustable-Rate Mortgage Loan is set forth in the Mortgage Loan Schedule.

                  "Administrator":  Newcastle  Investment  Corp. in the  performance  of its duties  pursuant to Article VIII under the
Sale and Servicing Agreement.

                  "Advance":  As to any Mortgage Loan or REO Property,  any advance made by the Servicer in respect of any Payment Date
pursuant to Section 4.01 of the Sale and Servicing Agreement.

                  "Advance Facility":  As defined in Section 3.29 of the Sale and Servicing Agreement.

                  "Advance Facility Trustee":  As defined in Section 3.29 of the Sale and Servicing Agreement.

                  "Advancing Person":  As defined in Section 3.29 of the Sale and Servicing Agreement.

                  "Advance Reimbursement Amounts":  As defined in Section 3.29 of the Sale and Servicing Agreement.

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

                  "Allocated  Realized Loss Amount":  With respect to any Payment Date and any Class of Subordinate  Notes, the excess,
if any, of (1) the sum of (x) any  Realized  Loss  allocated  to such Class of Notes on such  Payment  Date and (y) any  Realized  Loss
allocated to such Class of Notes on prior Payment  Dates over (2) the sum of (x) the amount of any  Allocated  Realized Loss Amount for
such  Class of Notes  distributed  to such  Class of Notes on a prior  Payment  Date and (y) the amount  equal to the  increase  in the
related Note Balance due to the receipt of Subsequent Recoveries.

                  "Annual  Independent  Public  Accountants'  Servicing  Report":  A report of a firm of independent public accountants
which is a member of the  American  Institute  of  Certified  Public  Accountants  to the effect  that such firm has  examined  certain
documents and records  relating to the  servicing of the Mortgage  Loans or mortgage  loans similar in nature to the Mortgage  Loans by
the Company and that such firm is of the opinion that the  provisions  of this  Agreement  or similar  servicing  agreements  have been
complied with, and that, on the basis of such examination  conducted  substantially  in compliance with the Uniform Single  Attestation
Program for Mortgage  Bankers,  nothing has come to the attention of such firm which would  indicate  that such  servicing has not been
conducted  in  compliance  therewith,  except  (i) such  exceptions  such firm  shall  believe  to be  immaterial,  and (ii) such other
exceptions  as shall be set forth in such  report.  No Annual  Independent  Public  Accountants'  Servicing  Report  shall  contain any
provision  restricting  the use of such report by the Company,  including  any  prohibition  on the inclusion of any such report in any
filing with the Commission.

                  "Assessment of Compliance":  As defined in Section 3.21 of the Sale and Servicing Agreement.

                  "Assignment":  An assignment of Mortgage,  notice of transfer or equivalent instrument,  in recordable form, which is
sufficient under the laws of the jurisdiction  wherein the related  Mortgaged  Property is located to reflect or record the sale of the
Mortgage.

                  "Assignment  Agreement":  The Assignment and Recognition  Agreement,  dated the Closing Date,  among the Seller,  the
Originator  and the  Depositor,  pursuant to which  certain of the Seller's  rights  under the Master  Agreement  were  assigned to the
Depositor, substantially in the form attached as Exhibit A to the Sale and Servicing Agreement.

                  "Attestation Report":  As defined in Section 3.21 of the Sale and Servicing Agreement.

                  "Authorized  Officer":  With respect to the Issuing Entity, any officer of the Owner Trustee who is authorized to act
for the Owner Trustee in matters relating to the Issuing Entity and who is identified on the list of Authorized  Officers  delivered by
the Owner Trustee to the Indenture  Trustee,  the Master  Servicer and the Securities  Administrator  on the Closing Date (as such list
may be  modified  or  supplemented  from time to time  thereafter)  and any  authorized  officer  of the  Sponsor  in its  capacity  as
administrator of the Issuing Entity pursuant to Article VIII of the Sale and Servicing Agreement.

                  "Available  Funds":  For any Payment Date,  the sum of (1) the Interest  Remittance  Amount for that Payment Date and
(2) the Principal Remittance Amount for that Payment Date.

                  "Available  Funds  Rate":  For any Payment  Date and the Group 1 Notes,  a per annum rate equal to the product of (i)
the excess,  if any, of (a) the weighted  average of the Adjusted Net Mortgage  Rates of the then  outstanding  Group 1 Mortgage  Loans
(weighted on the basis of the outstanding  Stated  Principal  Balances of the Group 1 Mortgage Loans as of the first day of the related
Due  Period,  adjusted to reflect  unscheduled  principal  payments  received  thereon  after such date and  included in the  Principal
Distribution  Amount on the immediately  preceding Payment Date) over (b) the Swap Expense Fee Rate, (ii) a fraction,  the numerator of
which is 30 and the  denominator  of which is the actual  number of days  elapsed in the related  Interest  Accrual  Period and (iii) a
fraction the  numerator of which is the aggregate  Stated  Principal  Balance of the Mortgage  Loans as of the first day of the related
Due Period  adjusted  to reflect  unscheduled  principal  payments  received  thereon  after such date and  included  in the  Principal
Distribution  Amount on the immediately  preceding Payment Date and the denominator of which is the aggregate Note Balance of the Notes
immediately prior to such Payment Date.

                  For any Payment Date and the Group 2 Notes,  a per annum rate equal to the product of (i) the excess,  if any, of (a)
the weighted  average of the Adjusted Net Mortgage Rates of the then  outstanding  Group 2 Mortgage Loans (weighted on the basis of the
outstanding  Stated  Principal  Balances  of the Group 2 Mortgage  Loans as of the first day of the  related  Due  Period,  adjusted to
reflect  unscheduled  principal  payments  received  thereon after such date and included in the Principal  Distribution  Amount on the
immediately  preceding  Payment  Date) over (b) the Swap  Expense  Fee Rate,  (ii) a  fraction,  the  numerator  of which is 30 and the
denominator  of which is the actual number of days elapsed in the related  Interest  Accrual  Period and (iii) a fraction the numerator
of which is the aggregate  Stated  Principal  Balance of the Mortgage  Loans as of the first day of the related Due Period  adjusted to
reflect  unscheduled  principal  payments  received  thereon after such date and included in the Principal  Distribution  Amount on the
immediately  preceding  Payment Date and the denominator of which is the aggregate Note Balance of the Notes  immediately prior to such
Payment Date.

                  For any Payment Date and the Subordinate  Notes, a per annum rate equal to the product of (i) the excess,  if any, of
(a) the weighted  average of the  Adjusted Net Mortgage  Rates of the then  outstanding  Mortgage  Loans  (weighted on the basis of the
outstanding  Stated  Principal  Balances of the  Mortgage  Loans as of the first day of the  related  Due  Period,  adjusted to reflect
unscheduled  principal payments received thereon after such date and included in the Principal  Distribution  Amount on the immediately
preceding  Payment  Date) over (b) the Swap Expense Fee Rate,  (ii) a fraction,  the  numerator of which is 30 and the  denominator  of
which is the actual number of days elapsed in the related  Interest  Accrual  Period and (iii) a fraction the numerator of which is the
aggregate  Stated  Principal  Balance  of the  Mortgage  Loans as of the  first day of the  related  Due  Period  adjusted  to  reflect
unscheduled  principal payments received thereon after such date and included in the Principal  Distribution  Amount on the immediately
preceding Payment Date and the denominator of which is the aggregate Note Balance of the Notes immediately prior to such Payment Date.

                  "Bankruptcy Code": The Bankruptcy Reform Act of 1978 (Title 11 of the United States Code), as amended.

                  "Bankruptcy  Loss":  Any loss  resulting  from a bankruptcy  court,  in  connection  with a personal  bankruptcy of a
mortgagor,  (1)  establishing  the value of a mortgaged  property at an amount less than the Stated  Principal  Balance of the mortgage
loan secured by such mortgaged property or (2) reducing the amount of the monthly payment on the related mortgage loan.

                   "Basic Documents":  The Trust Agreement,  the Certificate of Trust, the Indenture, the Sale and Servicing Agreement,
the Assignment  Agreement,  the Interest Rate Swap Agreement,  the Interest Rate Cap Agreement and the other documents and certificates
delivered in connection with any of the above.

                   "Basis Risk Shortfall  Amount":  With respect to any Class of Notes and any Payment Date, the sum of (i) the excess,
if any, of (x) the amount of interest  such Class of Notes for such  Payment  Date would have  accrued on such Payment Date at its Note
Rate (without  regard to the  Available  Funds Rate) over (y) interest  accrued on such Class of Notes at the Available  Funds Rate and
(ii) the unpaid portion of any Basis Risk Shortfall  Amount from the prior Payment Dates together with interest  accrued on such unpaid
portion for the most recently ended Interest Accrual Period at the related Note Rate (without regard to the Available Funds Rate).

                  "Beneficial  Owner":  With respect to any Note, the Person who is the  beneficial  owner of such Note as reflected on
the books of the  Depository  or on the books of a Person  maintaining  an  account  with such  Depository  (directly  as a  Depository
Participant or indirectly through a Depository Participant, in accordance with the rules of such Depository).

                  "Book-Entry Notes":  Beneficial  interests in the Notes,  ownership and transfers of which shall be made through book
entries by the Depository as described in Section 4.06 of the Indenture.

                  "Business  Day":  Any day other than a Saturday,  a Sunday or a day on which banking or savings  institutions  in the
State of Delaware,  the State of New York, the State of California,  the State of Maryland,  the State of Minnesota,  or in the city in
which the Corporate  Trust Office of the Securities  Administrator  is located are authorized or obligated by law or executive order to
be closed.

                  "Cap  Account":  The account or accounts  created and  maintained  pursuant to Section 4.04 of the Sale and Servicing
Agreement.  The Cap Account must be an Eligible Account.

                  "Cap Credit Support  Annex":  The credit support annex,  dated as of July 12, 2007,  between the Cap Provider and the
Issuing Entity, which is annexed to and forms part of the Interest Rate Cap Agreement.

                  "Cap Payment":  With respect to any Payment Date, the amount, if any, received from the Cap Provider for such Payment
Date.

                   "Cap Provider":  The cap provider under the Interest Rate Cap Agreement.  Initially,  the Cap Provider shall be Bear
Stearns Financial Products Inc.

                   "Certificate  Distribution  Account":  The account or accounts created and maintained pursuant to Section 3.10(c) of
the Trust Agreement.  The Certificate Distribution Account shall be an Eligible Account.

                  "Certificate  Percentage Interest":  With respect to each Certificate,  the Certificate Percentage Interest stated on
the face thereof.

                  "Certificate  Register":   The  register  maintained  by  the  Securities   Administrator  in  which  the  Securities
Administrator shall provide for the registration of Certificates and of transfers and exchanges of Certificates.

                  "Certificate  of Trust":  The  Certificate of Trust filed for the Trust pursuant to Section  3810(a) of the Statutory
Trust Statute.

                  "Certificates" or "Trust Certificates":  The Newcastle Mortgage Securities Trust 2007-1 Trust Certificates,  Class C,
Class XS and Class R,  collectively  evidencing  the  beneficial  ownership  interest in the Issuing  Entity and  executed by the Owner
Trustee in substantially the form set forth in Exhibit A to the Trust Agreement.

                  "Certificateholder"  or "Holder":  The Person in whose name a Certificate is registered in the Certificate  Register.
Owners of Certificates  that have been pledged in good faith may be regarded as Holders if the pledgee  establishes to the satisfaction
of the  Securities  Administrator  or the  Owner  Trustee,  as the case may be,  the  pledgee's  right so to act with  respect  to such
Certificates  and that the pledgee is not the Issuing  Entity,  any other obligor upon the  Certificates or any Affiliate of any of the
foregoing Persons.

                  "Certification":  As defined in Section 4.02(a)(iii) of the Sale and Servicing Agreement.

                  "Class": Collectively, all of the Notes bearing the same class designation.

                  "Class A Notes":  Any of the Class 1-A-1 Notes,  Class 2-A-1 Notes, Class 2-A-2 Notes, Class 2-A-3 Notes or the Class
2-A-4 Notes.

                  "Class 1-A-1 Notes":  Any one of the Class 1-A-1 Notes executed by the Issuing Entity and authenticated and delivered
by the Securities Administrator, substantially in the form annexed as Exhibit A-1 to the Indenture.

                  "Class 2-A-1 Notes":  Any one of the Class 2-A-1 Notes executed by the Issuing Entity and authenticated and delivered
by the Securities Administrator, substantially in the form annexed as Exhibit A-1 to the Indenture.

                  "Class 2-A-2 Notes":  Any one of the Class 2-A-2 Notes executed by the Issuing Entity and authenticated and delivered
by the Securities Administrator, substantially in the form annexed as Exhibit A-1 to the Indenture.

                  "Class 2-A-3 Notes":  Any one of the Class 2-A-3 Notes executed by the Issuing Entity and authenticated and delivered
by the Securities Administrator, substantially in the form annexed as Exhibit A-1 to the Indenture.

                  "Class 2-A-4 Notes":  Any one of the Class 2-A-4 Notes executed by the Issuing Entity and authenticated and delivered
by the Securities Administrator, substantially in the form annexed as Exhibit A-1 to the Indenture.

                  "Class C Distribution  Amount":  With respect to each Payment Date, the excess,  if any, of (I) the sum of (a)(x) the
excess of the  Stated  Principal  Balance of the  Mortgage  Loans as of the last day of the prior Due Period  over the  aggregate  Note
Balance of the Notes,  multiplied  by (y) an interest rate equal to the Adjusted Net Mortgage  Rate of the Mortgage  Loans,  divided by
(z) 12, (b) any principal  collections in respect of the Mortgage Loans to which the  Certificates  are entitled and (c) any Prepayment
Charges  collected during the related  Prepayment  Period,  over (II) the aggregate amount of all Basis Risk Shortfall Amounts that did
not reduce the Class XS Distribution Amount for such Payment Date.

                  "Class  Interest  Carryover  Shortfall":  With respect to any Class of Notes and any Payment Date, an amount equal to
the sum of (1) the excess of the Class Monthly  Interest Amount with respect to such Class of Notes for the preceding  Payment Date and
any  outstanding  Class  Interest  Carryover  Shortfall with respect to such Class of Notes from any preceding  Payment Date,  over the
Interest  Remittance  Amount for such Payment Date plus (2) one month's interest on the excess,  to the extent permitted by law, at the
Note Rate for such Class of Notes.

                  "Class M-1 Note":  Any one of the Class M-1 Notes executed by the Issuing Entity and  authenticated  and delivered by
the Securities Administrator, substantially in the form annexed as Exhibit A-2 to the Indenture.

                  "Class M-1 Principal  Distribution  Amount":  With respect to any Payment Date,  the excess of (x) the sum of (i) the
aggregate  Note Balance of the Class A Notes  (after  taking into account the payment of the Senior  Principal  Distribution  Amount on
such  Payment  Date) and (ii) the Note  Balance of the Class M-1 Notes  immediately  prior to such  Payment Date over (y) the lesser of
(A) the product of (i) 54.80% and (ii) the aggregate Stated  Principal  Balance of the Mortgage Loans as of the last day of the related
Due Period  (after  giving  effect to scheduled  payments of  principal  due during the related Due Period,  to the extent  received or
advanced,  and  unscheduled  collections  of principal  received  during the related  Prepayment  Period) and (B) the aggregate  Stated
Principal  Balance of the Mortgage  Loans as of the last day of the related Due Period (after  giving  effect to scheduled  payments of
principal due during the related Due Period,  to the extent  received or advanced,  and unscheduled  collections of principal  received
during the related Prepayment Period) minus the Overcollateralization Floor.

                  "Class M-2 Note":  Any one of the Class M-2 Notes executed by the Issuing Entity and  authenticated  and delivered by
the Securities Administrator, substantially in the form annexed as Exhibit A-2 to the Indenture.

                  "Class M-2 Principal  Distribution  Amount":  With respect to any Payment Date,  the excess of (x) the sum of (i) the
aggregate  Note Balance of the Class A Notes  (after  taking into account the payment of the Senior  Principal  Distribution  Amount on
such Payment  Date),  (ii) the Note Balance of the Class M-1 Notes  (after  taking into account the payment of the Class M-1  Principal
Distribution  Amount on such  Payment  Date) and (iii) the Note Balance of the Class M-2 Notes  immediately  prior to such Payment Date
over (y) the lesser of (A) the product of (i) 62.40% and (ii) the aggregate  Stated  Principal  Balance of the Mortgage Loans as of the
last day of the related Due Period (after giving  effect to scheduled  payments of principal due during the related Due Period,  to the
extent  received or advanced,  and unscheduled  collections of principal  received  during the related  Prepayment  Period) and (B) the
aggregate  Stated  Principal  Balance of the  Mortgage  Loans as of the last day of the  related  Due Period  (after  giving  effect to
scheduled payments of principal due during the related Due Period, to the extent received or advanced,  and unscheduled  collections of
principal received during the related Prepayment Period) minus the Overcollateralization Floor.

                  "Class M-3 Note":  Any one of the Class M-3 Notes executed by the Issuing Entity and  authenticated  and delivered by
the Securities Administrator, substantially in the form annexed as Exhibit A-2 to the Indenture.

                  "Class M-3 Principal  Distribution  Amount":  With respect to any Payment Date,  the excess of (x) the sum of (i) the
aggregate  Note Balance of the Class A Notes  (after  taking into account the payment of the Senior  Principal  Distribution  Amount on
such Payment  Date),  (ii) the Note Balance of the Class M-1 Notes  (after  taking into account the payment of the Class M-1  Principal
Distribution  Amount on such Payment  Date),  (iii) the Note  Balance of the Class M-2 Notes (after  taking into account the payment of
the Class M-2 Principal  Distribution  Amount on such Payment Date) and (iv) the Note Balance of the Class M-3 Notes  immediately prior
to such  Payment  Date over (y) the lesser of (A) the  product of (i) 67.00% and (ii) the  aggregate  Stated  Principal  Balance of the
Mortgage  Loans as of the last day of the related Due Period  (after  giving  effect to scheduled  payments of principal due during the
related Due Period,  to the extent  received  or  advanced,  and  unscheduled  collections  of  principal  received  during the related
Prepayment  Period) and (B) the aggregate Stated  Principal  Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving  effect to scheduled  payments of principal due during the related Due Period,  to the extent  received or advanced,  and
unscheduled collections of principal received during the related Prepayment Period) minus the Overcollateralization Floor.

                  "Class M-4 Note":  Any one of the Class M-4 Notes executed by the Issuing Entity and  authenticated  and delivered by
the Securities Administrator, substantially in the form annexed as Exhibit A-2 to the Indenture.

                  "Class M-4 Principal  Distribution  Amount":  With respect to any Payment Date,  the excess of (x) the sum of (i) the
aggregate  Note Balance of the Class A Notes  (after  taking into account the payment of the Senior  Principal  Distribution  Amount on
such Payment  Date),  (ii) the Note Balance of the Class M-1 Notes  (after  taking into account the payment of the Class M-1  Principal
Distribution  Amount on such Payment  Date),  (iii) the Note  Balance of the Class M-2 Notes (after  taking into account the payment of
the Class M-2  Principal  Distribution  Amount on such Payment  Date),  (iv) the Note Balance of the Class M-3 Notes (after taking into
account the payment of the Class M-3  Principal  Distribution  Amount on such  Payment  Date) and (v) the Note Balance of the Class M-4
Notes  immediately  prior to such  Payment  Date over (y) the lesser of (A) the  product of (i)  71.20% and (ii) the  aggregate  Stated
Principal  Balance of the Mortgage  Loans as of the last day of the related Due Period (after  giving  effect to scheduled  payments of
principal due during the related Due Period,  to the extent  received or advanced,  and unscheduled  collections of principal  received
during the related  Prepayment  Period) and (B) the aggregate Stated Principal  Balance of the Mortgage Loans as of the last day of the
related Due Period (after giving effect to scheduled  payments of principal due during the related Due Period,  to the extent  received
or advanced,  and unscheduled  collections of principal received during the related Prepayment Period) minus the  Overcollateralization
Floor.

                  "Class M-5 Note":  Any one of the Class M-5 Notes executed by the Issuing Entity and  authenticated  and delivered by
the Securities Administrator, substantially in the form annexed as Exhibit A-2 to the Indenture.

                  "Class M-5 Principal  Distribution  Amount":  With respect to any Payment Date,  the excess of (x) the sum of (i) the
aggregate  Note Balance of the Class A Notes  (after  taking into account the payment of the Senior  Principal  Distribution  Amount on
such Payment  Date),  (ii) the Note Balance of the Class M-1 Notes  (after  taking into account the payment of the Class M-1  Principal
Distribution  Amount on such Payment  Date),  (iii) the Note  Balance of the Class M-2 Notes (after  taking into account the payment of
the Class M-2  Principal  Distribution  Amount on such Payment  Date),  (iv) the Note Balance of the Class M-3 Notes (after taking into
account the payment of the Class M-3 Principal  Distribution  Amount on such Payment Date), (v) the Note Balance of the Class M-4 Notes
(after taking into account the payment of the Class M-4 Principal  Distribution  Amount on such Payment Date) and (vi) the Note Balance
of the Class M-5 Notes  immediately  prior to such  Payment  Date over (y) the  lesser of (A) the  product  of (i)  75.10% and (ii) the
aggregate  Stated  Principal  Balance of the  Mortgage  Loans as of the last day of the  related  Due Period  (after  giving  effect to
scheduled payments of principal due during the related Due Period, to the extent received or advanced,  and unscheduled  collections of
principal  received during the related  Prepayment  Period) and (B) the aggregate Stated Principal  Balance of the Mortgage Loans as of
the last day of the related Due Period (after giving  effect to scheduled  payments of principal due during the related Due Period,  to
the extent received or advanced,  and unscheduled  collections of principal  received during the related  Prepayment  Period) minus the
Overcollateralization Floor.

                  "Class M-6 Note":  Any one of the Class M-6 Notes executed by the Issuing Entity and  authenticated  and delivered by
the Securities Administrator, substantially in the form annexed as Exhibit A-2 to the Indenture.

                  "Class M-6 Principal  Distribution  Amount":  With respect to any Payment Date,  the excess of (x) the sum of (i) the
aggregate  Note Balance of the Class A Notes  (after  taking into account the payment of the Senior  Principal  Distribution  Amount on
such Payment  Date),  (ii) the Note Balance of the Class M-1 Notes  (after  taking into account the payment of the Class M-1  Principal
Distribution  Amount on such Payment  Date),  (iii) the Note  Balance of the Class M-2 Notes (after  taking into account the payment of
the Class M-2  Principal  Distribution  Amount on such Payment  Date),  (iv) the Note Balance of the Class M-3 Notes (after taking into
account the payment of the Class M-3 Principal  Distribution  Amount on such Payment Date), (v) the Note Balance of the Class M-4 Notes
(after taking into account the payment of the Class M-4 Principal  Distribution  Amount on such Payment Date), (vi) the Note Balance of
the Class M-5 Notes (after  taking into account the payment of the Class M-5  Principal  Distribution  Amount on such Payment Date) and
(vii) the Note  Balance of the Class M-6 Notes  immediately  prior to such  Payment  Date over (y) the lesser of (A) the product of (i)
78.50% and (ii) the  aggregate  Stated  Principal  Balance of the  Mortgage  Loans as of the last day of the related Due Period  (after
giving  effect to  scheduled  payments  of  principal  due during the  related Due Period,  to the extent  received  or  advanced,  and
unscheduled  collections of principal  received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of
the Mortgage  Loans as of the last day of the related Due Period  (after  giving  effect to scheduled  payments of principal due during
the related Due Period,  to the extent  received or advanced,  and  unscheduled  collections of principal  received  during the related
Prepayment Period) minus the Overcollateralization Floor.

                  "Class M-7 Note": Collectively, the Class M-7-A Notes and the Class M-7-B Notes.

                   "Class M-7-A Note": Any one of the Class M-7-A Notes executed by the Issuing Entity and  authenticated and delivered
by the Securities Administrator, substantially in the form annexed as Exhibit A-2 to the Indenture.

                  "Class M-7-B Note": Any one of the Class M-7-B Notes executed by the Issuing Entity and  authenticated  and delivered
by the Securities Administrator, substantially in the form annexed as Exhibit A-2 to the Indenture.

                  "Class M-7 Principal  Distribution  Amount":  With respect to any Payment Date,  the excess of (x) the sum of (i) the
aggregate  Note Balance of the Class A Notes  (after  taking into account the payment of the Senior  Principal  Distribution  Amount on
such Payment  Date),  (ii) the Note Balance of the Class M-1 Notes  (after  taking into account the payment of the Class M-1  Principal
Distribution  Amount on such Payment  Date),  (iii) the Note  Balance of the Class M-2 Notes (after  taking into account the payment of
the Class M-2  Principal  Distribution  Amount on such Payment  Date),  (iv) the Note Balance of the Class M-3 Notes (after taking into
account the payment of the Class M-3 Principal  Distribution  Amount on such Payment Date), (v) the Note Balance of the Class M-4 Notes
(after taking into account the payment of the Class M-4 Principal  Distribution  Amount on such Payment Date), (vi) the Note Balance of
the Class M-5 Notes  (after  taking into account the payment of the Class M-5  Principal  Distribution  Amount on such  Payment  Date),
(vii) the Note Balance of the Class M-6 Notes (after  taking into account the payment of the Class M-7  Principal  Distribution  Amount
on such  Payment  Date) and (viii) the Note Balance of the Class M-6 Notes  immediately  prior to such Payment Date over (y) the lesser
of (A) the  product of (i) 81.70% and (ii) the  aggregate  Stated  Principal  Balance of the  Mortgage  Loans as of the last day of the
related Due Period (after giving effect to scheduled  payments of principal due during the related Due Period,  to the extent  received
or advanced,  and unscheduled  collections of principal  received during the related  Prepayment  Period) and (B) the aggregate  Stated
Principal  Balance of the Mortgage  Loans as of the last day of the related Due Period (after  giving  effect to scheduled  payments of
principal due during the related Due Period,  to the extent  received or advanced,  and unscheduled  collections of principal  received
during the related Prepayment Period) minus the Overcollateralization Floor.

                  "Class M-8 Note": Collectively, the Class M-8-A Notes and the Class M-8-B Notes.

                   "Class M-8-A Note": Any one of the Class M-8-A Notes executed by the Issuing Entity and  authenticated and delivered
by the Securities Administrator, substantially in the form annexed as Exhibit A-2 to the Indenture.

                  "Class M-8-B Note": Any one of the Class M-8-B Notes executed by the Issuing Entity and  authenticated  and delivered
by the Securities Administrator, substantially in the form annexed as Exhibit A-2 to the Indenture.

                   "Class M-8 Principal  Distribution  Amount":  With respect to any Payment Date, the excess of (x) the sum of (i) the
aggregate  Note Balance of the Class A Notes  (after  taking into account the payment of the Senior  Principal  Distribution  Amount on
such Payment  Date),  (ii) the Note Balance of the Class M-1 Notes  (after  taking into account the payment of the Class M-1  Principal
Distribution  Amount on such Payment  Date),  (iii) the Note  Balance of the Class M-2 Notes (after  taking into account the payment of
the Class M-2  Principal  Distribution  Amount on such Payment  Date),  (iv) the Note Balance of the Class M-3 Notes (after taking into
account the payment of the Class M-3 Principal  Distribution  Amount on such Payment Date), (v) the Note Balance of the Class M-4 Notes
(after taking into account the payment of the Class M-4 Principal  Distribution  Amount on such Payment Date), (vi) the Note Balance of
the Class M-5 Notes  (after  taking into account the payment of the Class M-5  Principal  Distribution  Amount on such  Payment  Date),
(vii) the Note Balance of the Class M-6 Notes (after  taking into account the payment of the Class M-6  Principal  Distribution  Amount
on such  Payment  Date),  (viii) the Note  Balance of the Class M-7 Notes  (after  taking  into  account  the  payment of the Class M-7
Principal  Distribution  Amount on such  Payment  Date) and (ix) the Note  Balance  of the  Class M-8 Notes  immediately  prior to such
Payment  Date over (y) the lesser of (A) the product of (i) 84.60% and (ii) the  aggregate  Stated  Principal  Balance of the  Mortgage
Loans as of the last day of the related Due Period (after  giving effect to scheduled  payments of principal due during the related Due
Period, to the extent received or advanced,  and unscheduled  collections of principal  received during the related  Prepayment Period)
and (B) the  aggregate  Stated  Principal  Balance of the  Mortgage  Loans as of the last day of the related Due Period  (after  giving
effect to scheduled  payments of principal  due during the related Due Period,  to the extent  received or  advanced,  and  unscheduled
collections of principal received during the related Prepayment Period) minus the Overcollateralization Floor.

                  "Class M-9 Note":  Any one of the Class M-9 Notes executed by the Issuing Entity and  authenticated  and delivered by
the Securities Administrator, substantially in the form annexed as Exhibit A-2 to the Indenture.

                  "Class M-9 Principal  Distribution  Amount":  With respect to any Payment Date,  the excess of (x) the sum of (i) the
aggregate  Note Balance of the Class A Notes  (after  taking into account the payment of the Senior  Principal  Distribution  Amount on
such Payment  Date),  (ii) the Note Balance of the Class M-1 Notes  (after  taking into account the payment of the Class M-1  Principal
Distribution  Amount on such Payment  Date),  (iii) the Note  Balance of the Class M-2 Notes (after  taking into account the payment of
the Class M-2  Principal  Distribution  Amount on such Payment  Date),  (iv) the Note Balance of the Class M-3 Notes (after taking into
account the payment of the Class M-3 Principal  Distribution  Amount on such Payment Date), (v) the Note Balance of the Class M-4 Notes
(after taking into account the payment of the Class M-4 Principal  Distribution  Amount on such Payment Date), (vi) the Note Balance of
the Class M-5 Notes  (after  taking into account the payment of the Class M-5  Principal  Distribution  Amount on such  Payment  Date),
(vii) the Note Balance of the Class M-6 Notes (after  taking into account the payment of the Class M-6  Principal  Distribution  Amount
on such  Payment  Date),  (viii) the Note  Balance of the Class M-7 Notes  (after  taking  into  account  the  payment of the Class M-7
Principal  Distribution  Amount on such Payment  Date),  (ix) the Note  Balance of the Class M-8 Notes  (after  taking into account the
payment  of the  Class M-8  Principal  Distribution  Amount  on such  Payment  Date)  and (x) the Note  Balance  of the Class M-9 Notes
immediately  prior to such Payment Date over (y) the lesser of (A) the product of (i) 87.20% and (ii) the  aggregate  Stated  Principal
Balance of the Mortgage  Loans as of the last day of the related Due Period  (after  giving  effect to scheduled  payments of principal
due during the related Due Period,  to the extent received or advanced,  and unscheduled  collections of principal  received during the
related  Prepayment  Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled  payments of principal due during the related Due Period,  to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment Period) minus the Overcollateralization Floor.

                  "Class M-10 Note": Any one of the Class M-10 Notes executed by the Issuing Entity and  authenticated and delivered by
the Securities Administrator, substantially in the form annexed as Exhibit A-2 to the Indenture.

                  "Class M-10 Principal  Distribution  Amount":  With respect to any Payment Date, the excess of (x) the sum of (i) the
aggregate  Note Balance of the Class A Notes  (after  taking into account the payment of the Senior  Principal  Distribution  Amount on
such Payment  Date),  (ii) the Note Balance of the Class M-1 Notes  (after  taking into account the payment of the Class M-1  Principal
Distribution  Amount on such Payment  Date),  (iii) the Note  Balance of the Class M-2 Notes (after  taking into account the payment of
the Class M-2  Principal  Distribution  Amount on such Payment  Date),  (iv) the Note Balance of the Class M-3 Notes (after taking into
account the payment of the Class M-3 Principal  Distribution  Amount on such Payment Date), (v) the Note Balance of the Class M-4 Notes
(after taking into account the payment of the Class M-4 Principal  Distribution  Amount on such Payment Date), (vi) the Note Balance of
the Class M-5 Notes  (after  taking into account the payment of the Class M-5  Principal  Distribution  Amount on such  Payment  Date),
(vii) the Note Balance of the Class M-6 Notes (after  taking into account the payment of the Class M-6  Principal  Distribution  Amount
on such  Payment  Date),  (viii) the Note  Balance of the Class M-7 Notes  (after  taking  into  account  the  payment of the Class M-7
Principal  Distribution  Amount on such Payment  Date),  (ix) the Note  Balance of the Class M-8 Notes  (after  taking into account the
payment of the Class M-8  Principal  Distribution  Amount on such  Payment  Date),  (x) the Note  Balance of the Class M-9 Notes (after
taking into account the payment of the Class M-9 Principal  Distribution  Amount on such Payment Date) and (xi) the Note Balance of the
Class M-10 Notes  immediately  prior to such Payment  Date over (y) the lesser of (A) the product of (i) 90.50% and (ii) the  aggregate
Stated  Principal  Balance of the  Mortgage  Loans as of the last day of the  related  Due Period  (after  giving  effect to  scheduled
payments of principal due during the related Due Period, to the extent received or advanced,  and unscheduled  collections of principal
received during the related  Prepayment  Period) and (B) the aggregate  Stated  Principal  Balance of the Mortgage Loans as of the last
day of the related Due Period  (after  giving  effect to  scheduled  payments of  principal  due during the related Due Period,  to the
extent  received or advanced,  and  unscheduled  collections  of principal  received  during the related  Prepayment  Period) minus the
Overcollateralization Floor.

                  "Class Monthly  Interest  Amount":  With respect to any Payment Date and each Class of Notes,  the amount of interest
accrued  during the related  Interest  Accrual Period at the related Note Rate on the Note Balance of such Class  immediately  prior to
such  Payment  Date.  Class  Monthly  Interest  Amount  will be  calculated  on the basis of the actual  number of days in the  related
Interest Accrual Period and a 360-day year.

                  "Class XS  Distribution  Amount" With respect to each Payment Date,  the excess,  if any, of (I) the product of (x) a
notional  principal  balance  equal to the  aggregate  Note Balance of the Notes,  (y) an interest  rate equal to the excess of (a) the
Adjusted Net Mortgage  Rate of the Mortgage  Loans over (b) the weighted  average Note Rate for such Payment  Date,  and (z) the actual
number of days in the  immediately  preceding Due Period divided by 360, over (II) the aggregate of all Basis Risk  Shortfall  Amounts.
For the first  Payment  Date,  the Class XS  Distribution  Amount  shall be  increased  by an amount  equal to the  product  of (1) the
aggregate  Note  Balance of the Notes,  (2) the Adjusted Net  Mortgage  Rate and (3) a fraction,  (a) the  numerator of which equals 30
minus the actual number of days in the first Interest Accrual Period and (b) the denominator of with is 360.

                  "Close of Business": As used herein, with respect to any Business Day, 5:00 p.m. (New York time).

                  "Closing Date":  July 12, 2007.

                  "Code": The Internal Revenue Code of 1986, as amended.

                  "Collateral": The meaning specified in the Granting Clause of the Indenture.

                  "Collection  Account":  The account or accounts created and maintained by the Servicer pursuant to Section 3.10(a) of
the Sale and  Servicing  Agreement,  which shall be  entitled  "Nationstar  Mortgage  LLC,  as  Servicer  for The Bank of New York,  as
Indenture  Trustee,  in trust for the registered  holders of Newcastle  Mortgage  Securities Trust 2007-1,  Asset Backed Notes,  Series
2007-1."  The Collection Account must be an Eligible Account.

                  "Combined  Loan-to-Value  Ratio":  With respect to any Mortgage Loan secured by a second lien,  the Stated  Principal
Balance of the  Mortgage  Loan plus the Stated  Principal  Balance of any  related  senior  mortgage  loan at the date of  origination,
divided by the Value of the related Mortgaged Property.

                  "Commission": The Securities and Exchange Commission.

                  "Compensating Interest":  As defined in Section 3.24 of the Sale and Servicing Agreement.

                  "Corporate  Trust  Office":  With respect to the  Indenture  Trustee,  the  principal  corporate  trust office of the
Indenture  Trustee at which at any particular time its corporate trust business shall be administered,  which office at the date of the
execution of this  instrument is located at 101 Barclay Street,  Floor 4W, New York, New York 10286,  Attention:  Structured  Finance -
Newcastle  Mortgage  Securities  Trust 2007-1.  With respect to the Owner Trustee,  the principal  corporate  trust office of the Owner
Trustee at which at any  particular  time its corporate  trust business  shall be  administered,  which office is located at Wilmington
Trust Company,  Rodney Square North, 1100 North Market Street,  Wilmington,  Delaware 19801,  Attention:  Newcastle Mortgage Securities
Trust  2007-1.  With  respect  to the  Securities  Administrator,  Paying  Agent  and Note  Registrar,  for  certificate  transfers  an
surrenders:  is located at Sixth Street and Marquette Avenue,  Minneapolis,  Minnesota 55479; for all other purposes 9062 Old Annapolis
Road, Columbia, Maryland 24105, Attn: Corporate Trust - Newcastle 2007-1.

                  "Coupon Step Up Date":  Each Payment  Date on which the  aggregate  Stated  Principal  Balance of the Mortgage  Loans
(after giving  effect to scheduled  payments of principal due during the related Due Period,  to the extent  received or advanced,  and
unscheduled  collections of principal  received during the related  Prepayment  Period) and REO Properties is equal to or less than 10%
of the Cut-off Date Principal Balance.

                  "Cumulative Loss Trigger Event":  Shall occur with respect to any Payment Date on which the fraction,  expressed as a
percentage,  equal to (x) the aggregate  amount of Realized  Losses incurred since the Cut-off Date through the last day of the related
Due Period  (reduced by the  aggregate  amount of  Subsequent  Recoveries  received  from the Cut-off  Date through the last day of the
related Due Period) divided by (y) the aggregate  Stated  Principal  Balance of the Mortgage Loans as of the Cut-off Date,  exceeds the
applicable percentages set forth below with respect to such Payment Date:

                        Payment Date Occurring In                                Percentage

                       July 2009 through June 2010                   1.85% for the first month, plus an additional
                                                                     1/12th of 2.25% for each month thereafter
                       July 2010 through June 2011                   4.10% for the first month, plus an additional
                                                                     1/12th of 2.35% for each month thereafter
                       July 2011 through June 2012                   6.45% for the first month, plus an additional
                                                                     1/12th of 1.90% for each month thereafter
                       July 2012 through June 2013                   8.35% for the first month, plus an additional
                                                                     1/12th of 0.90% for each month thereafter
                       July 2013 and thereafter                      9.25% for each month

                  "Custodian":  The Person  acting as custodian  under the Sale and  Servicing  Agreement  from time to time. As of the
Closing Date, the initial Custodian shall be Wells Fargo Bank, N.A.

                  "Custodial Delivery Failure":  The failure of the Custodian to produce a Mortgage Note, Assignment of Mortgage or any
other  document  related to a Mortgage  Loan that was in its  possession  pursuant to the Sale and Servicing  Agreement  within two (5)
Business Days after the Custodian's  receipt of a written  request  therefor by the Servicer,  the Indenture  Trustee or the Securities
Administrator  in  accordance  with the terms and  conditions  of the Sale and  Servicing  Agreement;  provided  that (i) the Custodian
previously  delivered  to the  Indenture  Trustee,  a trust  receipt and an  exception  report  which did not list such  document as an
exception;  (ii) such document is not outstanding  pursuant to a Request for Release, and (iii) such document was held by the Custodian
on behalf of the Indenture Trustee.

                  "Cut-off Date": With respect to each Original Mortgage Loan, on June 1, 2007.

                  "Cut-off Date Principal  Balance":  With respect to any Mortgage Loan, the unpaid Stated Principal Balance thereof as
of the Cut-off Date (or as of the applicable date of substitution with respect to a Qualified  Substitute  Mortgage Loan), after giving
effect to scheduled payments due on or before the Cut-off Date, whether or not received.

                  "Debt Service  Reduction":  With respect to any Mortgage Loan, a reduction in the scheduled  Monthly Payment for such
Mortgage Loan by a court of competent  jurisdiction in a proceeding under the Bankruptcy Code,  except such a reduction  constituting a
Deficient Valuation or any reduction that results in a permanent forgiveness of principal.

                  "Default": Any occurrence which is or with notice or the lapse of time or both would become an Event of Default.

                   "Deficient  Valuation":  With respect to any Mortgage Loan, a valuation of the related Mortgaged Property by a court
of competent  jurisdiction in an amount less than the then outstanding  Stated Principal  Balance of the Mortgage Loan, which valuation
results from a proceeding initiated under the Bankruptcy Code.

                  "Definitive Notes": The meaning specified in Section 4.06 of the Indenture.

                  "Deleted  Mortgage Loan": A Mortgage Loan replaced or to be replaced with one or more Qualified  Substitute  Mortgage
Loans.

                  "Delinquency  Amount":  For any Due Period, the sum, without  duplication,  of the aggregate Stated Principal Balance
of Mortgage  Loans that are  Delinquent 60 days or more  (including  any Mortgage Loan in bankruptcy  and  Delinquent 60 days or more),
that are in foreclosure or that are REO Properties, each as of the last day of the related Due Period.

                  "Delinquency  Event":  On any Payment Date, the 60+  Delinquency  Percentage  (Rolling Three Month) exceeds 29.52% of
the Senior Enhancement Percentage for the prior Payment Date.

                  "Delinquent":  A Mortgage Loan is  "Delinquent"  if any payment due thereon is not made by the Mortgagor by the close
of business on the related Due Date. A Mortgage  Loan is "30 days  Delinquent"  if such  payment has not been  received by the close of
business on the  corresponding  day of the month  immediately  succeeding  the month in which such  payment was due, or, if there is no
such  corresponding  day (e.g., as when a 30-day month follows a 31-day month in which a payment was due on the 31st day of such month)
then on the last day of such immediately succeeding month.  Similarly for "60 days Delinquent," "90 days Delinquent" and so on.

                  "Depositor":  Bear Stearns Asset Backed Securities I LLC, a Delaware limited liability  company,  or its successor in
interest.

                  "Depository"  or  "Depository  Agency":  The  Depository  Trust  Company or a successor  appointed by the  Securities
Administrator.  Any successor to the Depository shall be an organization  registered as a "clearing  agency" pursuant to Section 17A of
the Exchange Act and the regulations of the Securities and Exchange Commission thereunder.

                  "Depository  Participant":  A Person for whom,  from time to time, the Depository  effects  book-entry  transfers and
pledges of securities deposited with the Depository.

                  "Derivatives Provider": Either or both of the Cap Provider and the Swap Provider, as the context so requires.

                  "Determination  Date":  With respect to any Payment  Date,  the 15th day of the calendar  month in which such Payment
Date occurs, or if such 15th day is not a Business Day, the Business Day immediately preceding such 15th day.

                  "Directly  Operate":  With  respect to any REO  Property,  the  furnishing  or  rendering  of services to the tenants
thereof,  the  management or operation of such REO  Property,  the holding of such REO Property  primarily  for sale to customers,  the
performance  of any  construction  work thereon or any use of such REO Property in a trade or business  conducted by the Issuing Entity
other than  through an  Independent  Contractor;  provided,  however,  that the  Indenture  Trustee  (or the  Servicer on behalf of the
Indenture  Trustee) shall not be considered to Directly  Operate an REO Property solely because the Indenture  Trustee (or the Servicer
on behalf of the Indenture  Trustee)  establishes  rental terms,  chooses tenants,  enters into or renews leases,  deals with taxes and
insurance, or makes decisions as to repairs or capital expenditures with respect to such REO Property

                  "Due Date":  With respect to each Mortgage Loan and any Payment  Date,  the first day of the calendar  month in which
such Payment Date occurs on which the Monthly  Payment for such  Mortgage  Loan was due (or, in the case of any Mortgage Loan under the
terms of which the Monthly  Payment for such  Mortgage  Loan was due on a day other than the first day of the  calendar  month in which
such Payment Date occurs, the Due Date shall be deemed to be the first day of the following  calendar month),  exclusive of any days of
grace.

                   "Due Period":  With respect to any Payment Date,  the period  commencing on the second day of the month  immediately
preceding the month in which such Payment Date occurs and ending on the first day of the month in which such Payment Date occurs.

                   "Eligible  Account":  Any of (i) an account or  accounts  maintained  with a federal or state  chartered  depository
institution or trust company the short-term  unsecured debt obligations of which (or, in the case of a depository  institution or trust
company that is the principal  subsidiary of a holding company,  the short-term unsecured debt obligations of such holding company) are
rated A-1 by S&P and P-1 by Moody's  (or  comparable  ratings if S&P,  Moody's and Fitch are not the Rating  Agencies)  at the time any
amounts are held on deposit therein;  provided,  that following a downgrade,  withdrawal,  or suspension of such  institution's  rating
above,  each account shall  promptly (and in any case within not more than 30 calendar days) be moved to one or more  segregated  trust
accounts  in the  trust  department  of such  institution,  or to an  account  at  another  institution  that  complies  with the above
requirements,  (ii) a trust  account or  accounts  maintained  with the trust  department  of a federal or state  chartered  depository
institution,  national banking  association or trust company acting in its fiduciary capacity or (iii) an account otherwise  acceptable
to each Rating Agency  without  reduction or  withdrawal of their then current  ratings of the Notes as evidenced by a letter from each
Rating Agency to the  Indenture  Trustee.  Eligible  Accounts may bear  interest.  Notwithstanding  Section 9.01,  the Indenture may be
amended to reduce the rating  requirements  in clause (i) above,  without  the  consent of any of the  Noteholders,  provided  that the
Person  requesting  such  amendment  obtains a letter from each  Rating  Agency  stating  that such  amendment  would not result in the
downgrading or withdrawal of the respective ratings then assigned to the Notes.

                  "ERISA":  The Employee Retirement Income Security Act of 1974, as amended.

                  "Escrow Account":  The account or accounts created and maintained  pursuant to Section 3.09 of the Sale and Servicing
Agreement.

                  "Escrow Payments": The amounts constituting ground rents, taxes, assessments,  water rates, fire and hazard insurance
premiums and other payments required to be escrowed by the Mortgagor with the mortgagee pursuant to any Mortgage Loan.

                  "Estate in Real Property": A fee simple estate in a parcel of land.

                  "Event of Default":  With respect to the  Indenture,  any one of the following  events  (whatever the reason for such
Event of Default and whether it shall be voluntary  or  involuntary  or be effected by  operation  of law or pursuant to any  judgment,
decree or order of any court or any order, rule or regulation of any administrative or governmental body):

                  (i)      a failure by the Issuing Entity to pay the Class Monthly  Interest Amount on any of the Class A Notes on any
         Payment  Date,  or if the Note Balance of the Class A Notes has been  reduced to zero, a failure by the Issuing  Entity to pay
         on any Payment  Date the Class  Monthly  Interest  Amount due on any of the most  senior  Class of Notes  outstanding  on such
         Payment Date; or

                  (ii)     the failure by the Issuing Entity on a respective  Final Stated  Maturity Date to reduce the Note Balance of
         any of the Notes to zero; or

                  (iii)    there occurs a default in the  observance or  performance of any covenant or agreement of the Issuing Entity
         made in the Indenture,  or any  representation  or warranty of the Issuing Entity made in the Indenture or in any  certificate
         or other writing  delivered  pursuant hereto or in connection  herewith proving to have been incorrect in any material respect
         as of the time when the same shall have been made, and such default shall  continue or not be cured,  or the  circumstance  or
         condition  in respect of which such  representation  or warranty was  incorrect  shall not have been  eliminated  or otherwise
         cured,  for a period of 30 days after there shall have been given,  by registered or certified  mail, to the Issuing Entity by
         the  Indenture  Trustee or to the Issuing  Entity and the  Indenture  Trustee by the Holders of at least 25% of the  aggregate
         Note Balance of the Outstanding  Notes, a written notice  specifying such default or incorrect  representation or warranty and
         requiring it to be remedied and stating that such notice is a notice of default hereunder; or

                  (iv)     there  occurs the filing of a decree or order for relief by a court having  jurisdiction  in the premises in
         respect of the  Issuing  Entity or any  substantial  part of the Trust  Estate in an  involuntary  case  under any  applicable
         federal  or state  bankruptcy,  insolvency  or other  similar  law now or  hereafter  in effect,  or  appointing  a  receiver,
         liquidator,  assignee,  custodian, trustee, sequestrator or similar official of the Issuing Entity or for any substantial part
         of the Trust Estate,  or ordering the  winding-up or  liquidation of the Issuing  Entity's  affairs,  and such decree or order
         shall remain unstayed and in effect for a period of 60 consecutive days; or

                  (v)      there occurs the  commencement  by the Issuing Entity of a voluntary  case under any  applicable  federal or
         state  bankruptcy,  insolvency  or other similar law now or hereafter in effect,  or the consent by the Issuing  Entity to the
         entry of an order  for  relief in an  involuntary  case  under  any such law,  or the  consent  by the  Issuing  Entity to the
         appointment or taking possession by a receiver,  liquidator,  assignee,  custodian,  trustee, sequestrator or similar official
         of the Issuing Entity or for any  substantial  part of the assets of the Trust Estate,  or the making by the Issuing Entity of
         any general  assignment for the benefit of creditors,  or the failure by the Issuing Entity generally to pay its debts as such
         debts become due, or the taking of any action by the Issuing Entity in furtherance of any of the foregoing; or

                  (vi)     the Issuing Entity becomes subject to federal income tax.

                  "Excess  Interest":  With respect to any Payment Date, the amounts  remaining in the Note Account,  if any, after the
application of payments pursuant to clauses (A) through (E) of section 3.05(a) of the Indenture.

                   "Excess Overcollateralization  Amount": With respect to any Payment Date, the lesser of (1) the Principal Remittance
Amount for the Payment Date and (2) the excess, if any, of (x) the  Overcollateralization  Amount for such Payment Date,  assuming 100%
of the Principal  Remittance  Amount is distributed on the Notes, over (y) the Required  Overcollateralization  Amount for such Payment
Date.

                  "Exchange  Act":  The  Securities  Exchange  Act of 1934,  as  amended,  and the  rules and  regulations  promulgated
thereunder.

                  "Expenses": The meaning specified in Section 7.02 of the Trust Agreement.

                  "Fannie Mae": Fannie Mae, formerly known as the Federal National Mortgage Association, or any successor thereto.

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

                  "Final Stated Maturity Date": With respect to each Class of Notes, the Payment Date in April 2037.

                  "Final  Recovery  Determination":  With respect to any  defaulted  Mortgage  Loan or any REO  Property  (other than a
Mortgage  Loan or REO Property (i)  repurchased  by the  Originator  or purchased  by the Servicer  pursuant to or as  contemplated  by
Section  2.03 of the Sale and  Servicing  Agreement  or (ii)  removed  from the Trust  pursuant to Section  8.07 of the  Indenture),  a
determination  made by the Servicer that all Insurance  Proceeds,  Net Liquidation  Proceeds and other payments or recoveries which the
Servicer,  in its reasonable good faith  judgment,  expects to be finally  recoverable in respect  thereof have been so recovered.  The
Servicer shall maintain records, prepared by a Servicing Officer, of each Final Recovery Determination made thereby.

                  "Fixed-Rate  Mortgage  Loan":  A first or second lien Mortgage Loan which  provides for a fixed Mortgage Rate payable
with respect thereto.  The Fixed-Rate Mortgage Loans are identified as such on the Mortgage Loan Schedule.

                  "Fixed  Swap  Payment":  With  respect to any Payment  Date,  a fixed  amount  equal to the product of (x) 5.074% per
annum,  (y) the product of (i) the related  Notional  Amount (as defined in the Interest Rate Swap  Agreement)  and (ii) 250, and (z) a
fraction,  the  numerator  of which is 30 (or,  in the case of the first  payment  date,  the  number of days  from and  including  the
effective date (as defined in the Interest Rate Swap  Agreement) to but excluding such payment date,  determined on a 30/360 basis) and
the denominator of which is 360.

                  "Floating  Swap  Payment":  With  respect to any Payment  Date,  a floating  amount  equal to the product of (i) Swap
LIBOR,  (ii) the  related  Notional  Amount (as  defined in the  Interest  Rate Swap  Agreement),  (iii) 250 and (iv) a  fraction,  the
numerator of which is the actual number of days elapsed from and  including  the previous  Floating Rate Payer Payment Date (as defined
in the Interest Rate Swap  Agreement) to but excluding the current  Floating Rate Payer Payment Date,  and the  denominator of which is
360.

                  "Form 8-K Disclosure Information":  As defined in Section 4.02(a)(ii) of the Sale and Servicing Agreement.

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

                  "Grant": Pledge, bargain, sell, warrant,  alienate,  remise, release, convey, assign, transfer, grant a lien upon and
a security  interest in, create a right of set-off against,  deposit,  set over and confirm  pursuant to the Indenture.  A Grant of the
Collateral or of any other agreement or instrument  shall include all rights,  powers and options (but none of the  obligations) of the
granting party thereunder,  including the immediate and continuing right to claim for, collect,  receive and give receipt for principal
and interest payments in respect of such collateral or other agreement or instrument and all other moneys payable  thereunder,  to give
and receive  notices and other  communications,  to make waivers or other  agreements,  to exercise  all rights and  options,  to bring
proceedings  in the name of the granting  party or otherwise,  and generally to do and receive  anything that the granting  party is or
may be entitled to do or receive thereunder or with respect thereto.

                  "Gross Margin":  With respect to each  Adjustable-Rate  Mortgage Loan, the fixed  percentage set forth in the related
Mortgage  Note that is added to the Index on each  Adjustment  Date in accordance  with the terms of the related  Mortgage Note used to
determine the Mortgage Rate for such Adjustable-Rate Mortgage Loan.

                  "Group 1  Allocation  Percentage":  With  respect to any Payment  Date, a fraction  expressed  as a  percentage,  the
numerator  of which is the Group 1 Principal  Remittance  Amount for that Payment Date and the  denominator  of which is the  Principal
Remittance Amount for that Payment Date.

                  "Group 1 Interest  Remittance  Amount":  With  respect to a Payment  Date and Loan Group 1 an amount equal to (A) the
sum, without  duplication,  of (i) all scheduled interest received on the mortgage loans in Loan Group 1 during the related Due Period,
less the Servicing Fee and Master  Servicing Fee for such mortgage loans,  (ii) the interest  portion of all Monthly  Advances for such
Payment  Date on the Group 1 Mortgage  Loans,  (iii) all  Compensating  Interest  for such Payment Date related to the Group 1 Mortgage
Loans,  (iv)  Liquidation  Proceeds  and  Subsequent  Recoveries  received  during the related  Prepayment  Period,  to the extent such
Liquidation  Proceeds  and  Subsequent  Recoveries  related  to  interest  on the Group 1 Mortgage  Loans and less all  non-recoverable
advances relating to interest and certain expenses on the Group 1 Mortgage Loans reimbursed during the related  Prepayment  Period, (v)
the interest  portion of proceeds of the  repurchase  of any Group 1 Mortgage  Loans during the related Due Period,  and (vi) such Loan
Group's pro rata share (based on the aggregate  Stated  Principal  Balance) of the interest portion of the purchase price of the assets
of the Issuing  Entity upon  exercise on such  Payment  Date by the  majority  holder of the owner trust  certificates  of its optional
redemption right,  minus (B) the sum of (i) amounts payable or reimbursable to the Servicer,  the Depositor,  the Master Servicer,  the
Securities  Administrator,  the Indenture  Trustee and the  Custodian  during the related Due Period as provided in Section 5.03 of the
Sale and  Servicing  Agreement  or Section 6.07 of the  Indenture to the extent  related to such Loan Group and (ii) the product of (1)
the sum of (x) such reimbursement or payments to the Servicer, the Master Servicer, the Depositor,  the Securities  Administrator,  the
Indenture  Trustee and the Custodian  during the related Due Period as provided in Section 5.03 of the Sale and Servicing  Agreement or
Section  6.07 of the  Indenture  and not related to a Loan Group and (y) any Net Swap Payment or Swap  Termination  Payment owed to the
Swap Provider (other than any swap  termination  payment  resulting from a swap provider  trigger event) on such Payment Date and (2) a
fraction,  the  numerator of which is the amount of interest  collected  or advanced in respect of the Group 1 Mortgage  Loans for such
Payment Date and the  denominator  of which is the amount of interest  collected  or advanced in respect of the Group 1 Mortgage  Loans
and Group 2 Mortgage Loans for such Payment Date.

                  "Group 1 Mortgage Loans": A Mortgage Loan assigned to Loan Group 1.

                  "Group 1 Notes":  The Class 1-A-1 Notes.

                  "Group 1 Principal  Remittance  Amount":  With respect to a Payment Date and Loan Group 1, an amount equal to (A) the
sum, without  duplication,  of (i) the scheduled principal collected on the mortgage loans in the related Loan Group during the related
Due Period or advanced by the Servicer or Master  Servicer,  (ii)  prepayments  of principal in respect of the Group 1 Mortgage  Loans,
exclusive of any prepayment  charges,  collected in the related  Prepayment  Period,  (iii) the Outstanding  Principal Balance received
with respect to each Group 1 Mortgage  Loan that was  repurchased  by the  Originator  and the amount,  if any, by which the  aggregate
unpaid principal  balance of any replacement  mortgage loans in the Loan Group 1 is less than the aggregate unpaid principal balance of
any deleted  mortgage  loans in the Loan Group 1 delivered by the Originator in connection  with a  substitution  of a mortgage loan in
the related Loan Group, (iv) all Liquidation  Proceeds and Subsequent  Recoveries collected during the related Prepayment Period on the
Group  1  Mortgage  Loans,  to the  extent  such  Liquidation  Proceeds  and  Subsequent  Recoveries  relate  to  principal,  less  all
non-recoverable  advances  relating to  principal  reimbursed  during the related Due Period,  and (v) such Loan Group's pro rata share
(based on the aggregate  Stated Principal  Balance) of the principal  portion of the purchase price of the assets of the Issuing Entity
upon the exercise by the majority holder of the owner trust  certificates  of its optional  redemption  right;  minus (B) the amount by
which  the  sum of (i)  amounts  payable  or  reimbursable  to the  Servicer,  the  Depositor,  the  Master  Servicer,  the  Securities
Administrator,  the  Indenture  Trustee and the  Custodian  during the related  Due Period as provided in the  Indenture  to the extent
related to such Loan Group including all  non-recoverable  advances  relating to interest and certain  expenses  reimbursed  during the
related  Prepayment  Period and (ii) the  product of (1) the sum of (x) such  reimbursement  or payments  to the  Servicer,  the Master
Servicer,  the  Securities  Administrator,  the Indenture  Trustee and the  Custodian  during the related Due Period as provided in the
Indenture and not related to a Loan Group and (y) any Net Swap Payment or Swap  Termination  Payment owed to the Swap  Provider  (other
than any swap  termination  payment  resulting  from a swap  provider  trigger  event) on such  Payment  Date and (2) a  fraction,  the
numerator of which is the amount of interest  collected or advanced in respect of the Group 1 Mortgage  Loans for such Payment Date and
the  denominator  of which is the amount of  interest  collected  or  advanced  in  respect  of the Group 1 Mortgage  Loans and Group 2
Mortgage Loans for such Payment Date exceed the Group 1 Interest Remittance Amount for such Payment Date.

                  "Group 1 Principal  Distribution Amount": The product of (i) the Principal  Distribution Amount for that Payment Date
and (ii) the Group 1 Allocation Percentage.

                  "Group 1 Senior Principal Distribution Amount":      With  respect to any Payment  Date,  the excess,  if any, of (1)
the  aggregate  Note  Balances of the Group 1 Notes  immediately  prior to that  Payment  Date over (i) the lesser of (a) 47.00% of the
aggregate Stated  Principal  Balance of the Group 1 Mortgage Loans as of the last day of the related Due Period and after giving effect
to principal  prepayments  received during the related  Prepayment Period and (b) the aggregate Stated Principal Balance of the Group 1
Mortgage  Loans as of the last date of the related Due Period and after giving  effect to  principal  prepayments  received  during the
related Prepayment Period minus 0.50% of the aggregate Stated Principal Balance of the Group 1 Mortgage Loans as of the Cut-Off Date.

                  "Group 2  Allocation  Percentage":  With  respect to any Payment  Date, a fraction  expressed  as a  percentage,  the
numerator  of which is the Group 2 Principal  Remittance  Amount for that Payment Date and the  denominator  of which is the  Principal
Remittance Amount for that Payment Date.

                  "Group 2 Interest Remittance Amount":       With  respect to a Payment  Date and Loan Group 2, an amount equal to (A)
the sum,  without  duplication,  of (i) all scheduled  interest  received on the mortgage  loans in Loan Group 2 during the related Due
Period,  less the Servicing Fee and Master  Servicing Fee for such mortgage loans,  (ii) the interest  portion of all Monthly  Advances
for such  Payment  Date on the Group 2 Mortgage  Loans,  (iii) all  Compensating  Interest for such Payment Date related to the Group 2
Mortgage Loans, (iv) Liquidation  Proceeds and Subsequent  Recoveries received during the related Prepayment Period, to the extent such
Liquidation  Proceeds  and  Subsequent  Recoveries  related  to  interest  on the Group 2 Mortgage  Loans and less all  non-recoverable
advances  relating to interest and certain expenses on the Group 1 Mortgage Loans  reimbursed  during the related  Prepayment  Period,,
(v) the interest  portion of proceeds of the  repurchase  of any Group 2 Mortgage  Loans  during the related Due Period,  and (vi) such
Loan Group's pro rata share (based on the aggregate  Stated  Principal  Balance) of the interest  portion of the purchase  price of the
assets of the Issuing  Entity  upon  exercise on such  Payment  Date by the  majority  holder of the owner  trust  certificates  of its
optional  redemption  right,  minus (B) the sum of (i) amounts  payable or  reimbursable  to the  Servicer,  the Master  Servicer,  the
Depositor, the Securities  Administrator,  the Indenture Trustee and the Custodian during the related Due Period as provided in Section
5.03 of the Sale and  Servicing  Agreement  or in Section 6.07 of the  Indenture to the extent  related to such Loan Group and (ii) the
product of (1) the sum of (x) such  reimbursement  or payments to the Servicer,  the Master  Servicer,  the  Depositor,  the Securities
Administrator,  the  Indenture  Trustee and the  Custodian  during the  related Due Period as provided in Section  5.03 of the Sale and
Servicing  Agreement  or in  Section  6.07 of the  Indenture  and not  related  to a Loan  Group and (y) any Net Swap  Payment  or Swap
Termination  Payment owed to the Swap Provider (other than any swap termination  payment  resulting from a swap provider trigger event)
on such  Payment  Date and (2) a fraction,  the  numerator  of which is the amount of interest  collected or advanced in respect of the
Group 2 Mortgage Loans for such Payment Date and the  denominator  of which is the amount of interest  collected or advanced in respect
of the Group 1 Mortgage Loans and Group 2 Mortgage Loans for such Payment Date.

                  "Group 2 Mortgage Loans":  A Mortgage Loan assigned to Loan Group 2.

                  "Group 2 Notes":  Collectively,  the Class 2-A-1 Notes,  the Class 2-A-2  Notes,  the Class 2-A-3 Notes and the Class
2-A-4 Notes.

                  "Group 2 Principal  Distribution  Amount":  - The product of (i) the Principal  Distribution  Amount for that Payment
Date and (ii) the Group 2 Allocation Percentage.

                  "Group 2 Principal Remittance  Amount:":  With respect to a Payment Date and Loan Group 2, will generally be equal to
(A) the sum, without  duplication,  of (i) the scheduled principal collected on the mortgage loans in the related Loan Group during the
related Due Period or advanced by the Servicer or Master  Servicer,  (ii)  prepayments  of principal in respect of the Group 2 Mortgage
Loans,  exclusive of any prepayment  charges,  collected in the related  Prepayment  Period,  (iii) the Outstanding  Principal  Balance
received  with  respect to each Group 2 Mortgage  Loan that was  repurchased  by the  Originator  and the amount,  if any, by which the
aggregate  unpaid principal  balance of any replacement  mortgage loans in the Loan Group 2 is less than the aggregate unpaid principal
balance of any deleted  mortgage loans in the Loan Group 2 delivered by the Originator in connection  with a substitution of a mortgage
loan in the related Loan Group,  (iv) all  Liquidation  Proceeds and  Subsequent  Recoveries  collected  during the related  Prepayment
Period on the Group 2 Mortgage Loans, to the extent such Liquidation Proceeds and Subsequent  Recoveries relate to principal,  less all
non-recoverable  advances  relating to  principal  reimbursed  during the related Due Period,  and (v) such Loan Group's pro rata share
(based on the aggregate  Stated Principal  Balance) of the principal  portion of the purchase price of the assets of the Issuing Entity
upon the exercise by the majority holder of the owner trust  certificates  of its optional  redemption  right;  minus (B) the amount by
which the sum of (i)  amounts  payable or  reimbursable  to the  Servicer,  the Master  Servicer,  the  Securities  Administrator,  the
Indenture  Trustee and the  Custodian  during the related Due Period as provided in the  Indenture  to the extent  related to such Loan
Group  including all  non-recoverable  advances  relating to interest and certain  expenses  reimbursed  during the related  Prepayment
Period and (ii) the product of (1) the sum of (x) such reimbursement or payments to the Servicer,  the Master Servicer,  the Securities
Administrator,  the Indenture  Trustee and the Custodian  during the related Due Period as provided in the Indenture and not related to
a Loan Group and (y) any Net Swap  Payment or Swap  Termination  Payment  owed to the Swap  Provider  (other than any swap  termination
payment  resulting from a swap provider  trigger  event) on such Payment Date and (2) a fraction,  the numerator of which is the amount
of interest  collected or advanced in respect of the Group 2 Mortgage  Loans for such Payment Date and the  denominator of which is the
amount of interest  collected  or advanced in respect of the Group 1 Mortgage  Loans and Group 2 Mortgage  Loans for such  Payment Date
exceed the Group 2 Interest Remittance Amount for such Payment Date.

                  "Group 2 Senior  Principal  Distribution  Amount":  With respect to any Payment Date, the excess,  if any, of (1) the
aggregate  Note  Balances  of the  Group 2 Notes  immediately  prior to that  Payment  Date over (i) the  lesser  of (a)  47.00% of the
aggregate Stated  Principal  Balance of the Group 2 Mortgage Loans as of the last day of the related Due Period and after giving effect
to principal  prepayments  received during the related  Prepayment Period and (b) the aggregate Stated Principal Balance of the Group 2
Mortgage  Loans as of the last date of the related Due Period and after giving  effect to  principal  prepayments  received  during the
related Prepayment Period minus 0.50% of the aggregate Stated Principal Balance of the Group 2 Mortgage Loans as of the Cut-Off Date.

                   "Guarantor":  Fremont General Corporation, or its successor in interest.

                  "Highest  Priority":  As of any date of  determination,  the Class of Subordinate  Notes then outstanding with a Note
Balance greater than zero, with the highest  priority for payments  pursuant to Section 3.05 of the Indenture,  in the following order:
Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9 and Class M-10 Notes.

                  "Indemnified Parties": The meaning specified in Section 7.02 of the Trust Agreement.

                  "Indenture":  The indenture dated as of July 12, 2007, among the Issuing Entity, the Securities Administrator and the
Indenture Trustee, relating to the Newcastle Mortgage Securities Trust 2007-1, Asset-Backed Notes, Series 2007-1.

                  "Indenture  Trustee":  The Bank of New York,  and its  successors  and  assigns or any  successor  indenture  trustee
appointed pursuant to the terms of  the Indenture.

                   "Independent":  When used with respect to any specified Person, the Person (i) is in fact independent of the Issuing
Entity,  any other obligor on the Notes,  the Seller,  the Servicer,  the Depositor and any Affiliate of any of the foregoing  Persons,
(ii) does not have any direct financial  interest or any material  indirect  financial  interest in the Issuing Entity,  any such other
obligor,  the Seller, the Servicer,  the Depositor or any Affiliate of any of the foregoing Persons and (iii) is not connected with the
Issuing Entity,  any such other obligor,  the Seller,  the Servicer,  the Depositor or any Affiliate of any of the foregoing Persons as
an officer, employee, promoter, underwriter, trustee, partner, director or person performing similar functions.

                  "Independent Certificate":  A certificate or opinion to be delivered to the Indenture Trustee under the circumstances
described in, and otherwise  complying  with, the  applicable  requirements  of Section 10.01 of the Indenture,  made by an independent
appraiser or other expert  appointed by an Issuing  Entity  Request,  and such opinion or  certificate  shall state that the signer has
read the definition of "Independent" in this Indenture and that the signer is Independent within the meaning thereof.

                  "Independent  Contractor":  Either (i) any Person (other than the Servicer) that would be an "independent contractor"
with  respect to the Issuing  Entity  within the  meaning of Section  856(d)(3)  of the Code if the  Issuing  Entity were a real estate
investment  trust  (except that the  ownership  tests set forth in that section  shall be considered to be met by any Person that owns,
directly or  indirectly,  35% or more of any Class of Notes),  so long as the Issuing Entity does not receive or derive any income from
such Person and provided that the  relationship  between such Person and the Issuing Entity is at arm's length,  all within the meaning
of Treasury Regulation Section  1.856-4(b)(5),  or (ii) any other Person (including the Servicer) if the Indenture Trustee has received
an  Opinion of Counsel to the effect  that the  taking of any  action in respect of any REO  Property  by such  Person,  subject to any
conditions therein specified,  that is otherwise herein  contemplated to be taken by an Independent  Contractor will not cause such REO
Property  to cease to qualify as  "foreclosure  property"  within the meaning of Section  860G(a)(8)  of the Code  (determined  without
regard to the exception  applicable for purposes of Section  860D(a) of the Code),  or cause any income realized in respect of such REO
Property to fail to qualify as Rents from Real Property.

                  "Index":  With respect to each  Adjustable-Rate  Mortgage Loan and with respect to each related  Adjustment Date, the
index as specified in the related Mortgage Note.

                  "Initial Note Balance":   As set forth in Section 2.02 of the Indenture.

                  "Insurance  Proceeds":  Proceeds of any title policy,  hazard policy or other  insurance  policy  covering a Mortgage
Loan to the extent such  proceeds are received by the Servicer and are not to be applied to the  restoration  of the related  Mortgaged
Property or released to the Mortgagor in accordance  with the  procedures  that the Servicer  would follow in servicing  mortgage loans
held for its own account, subject to the terms and conditions of the related Mortgage Note and Mortgage.

                  "Interest  Accrual Period":  With respect to the Notes and each Payment Date, the period  commencing on the preceding
Payment  Date (or in the case of the first  such  Interest  Accrual  Period,  commencing  on the  Closing  Date) and  ending on the day
immediately preceding such Payment Date.

                   "Interest  Determination  Date":  With  respect to the Notes and each  Interest  Accrual  Period,  the second  LIBOR
Business Day preceding the commencement of such Interest Accrual Period.

                  "Interest Rate Cap Agreement":  The interest rate cap agreement,  dated as of July 12, 2007, between the Cap Provider
and the Issuing  Entity,  including  any  schedule,  confirmations,  credit  support annex or other credit  support  document  relating
thereto.

                  "Interest  Rate Swap  Agreement":  The interest  rate swap  agreement,  dated as of July 12,  2007,  between the Swap
Provider and the Issuing  Entity,  including  any  schedule,  confirmations,  credit  support  annex or other credit  support  document
relating thereto.

                  "Interest  Remittance  Amount":  With respect to any Payment Date, the sum of the Group 1 Interest  Remittance Amount
and the Group 2 Interest Remittance Amount for such Payment Date.

                  "Investment Company Act": The Investment Company Act of 1940, as amended, and any amendments thereto.

                  "IRS": The Internal Revenue Service.

                   "Issuing  Entity  Request":  A written order or request  signed in the name of the Issuing  Entity by any one of its
Authorized Officers and delivered to the Indenture Trustee.

                  "Issuing  Entity":  Newcastle  Mortgage  Securities  Trust 2007-1,  a Delaware  statutory  trust, or its successor in
interest.

                   "Late  Collections":  With respect to any Mortgage Loan, all amounts received  subsequent to the Determination  Date
immediately  following  any related Due Period,  whether as late  payments of Monthly  Payments or as Insurance  Proceeds,  Liquidation
Proceeds or  otherwise,  which  represent  late  payments or  collections  of principal  and/or  interest  due  (without  regard to any
acceleration  of payments under the related  Mortgage and Mortgage Note) but delinquent on a contractual  basis for such Due Period and
not previously recovered.

                  "LIBOR":  With respect to each Interest  Accrual Period,  the rate determined by the Securities  Administrator on the
related Interest  Determination Date on the basis of the London interbank offered rate for one-month United States dollar deposits,  as
such rate appears on the Reuters  Screen  LIBOR01 Page, as of 11:00 a.m.  (London  time) on such Interest  Determination  Date. If such
rate does not appear on Telerate  Page 3750,  the rate for such  Interest  Determination  Date will be  determined  on the basis of the
offered rates of the Reference  Banks for one-month  United  States dollar  deposits,  as of 11:00 a.m.  (London time) on such Interest
Determination  Date. The Securities  Administrator will request the principal London office of each of the Reference Banks to provide a
quotation of its rate. On such Interest  Determination  Date,  LIBOR for the related Interest Accrual Period will be established by the
Securities Administrator as follows:

                  (1)      If on such Interest  Determination Date two or more Reference Banks provide such offered  quotations,  LIBOR
         for the  related  Interest  Accrual  Period  shall be the  arithmetic  mean of such  offered  quotations  (rounded  upwards if
         necessary to the nearest whole multiple of 1/16 of 1%); and

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

                  "LIBOR  Business  Day":  Any day on which banks in London,  England and The City of New York are open and  conducting
transactions in foreign currency and exchange.

                  "Lien":  Any  mortgage,  deed  of  trust,  pledge,  conveyance,  hypothecation,  assignment,  participation,  deposit
arrangement,  encumbrance,  lien  (statutory  or  other),  preference,  priority  right or  interest  or other  security  agreement  or
preferential  arrangement  of any kind or nature  whatsoever,  including,  without  limitation,  any  conditional  sale or other  title
retention  agreement,  any financing lease having  substantially the same economic effect as any of the foregoing and the filing of any
financing  statement under the UCC (other than any such financing  statement filed for  informational  purposes only) or comparable law
of any jurisdiction to evidence any of the foregoing;  provided,  however, that any assignment pursuant to Section 6.02 of the Sale and
Servicing Agreement shall not be deemed to constitute a Lien.

                  "Liquidated  Mortgage  Loan":  As to any  Payment  Date,  any  Mortgage  Loan in  respect of which the  Servicer  has
determined,  in its  reasonable  judgment,  as of the end of the related  Prepayment  Period,  that all  Liquidation  Proceeds which it
expects to recover  with  respect to the  liquidation  of the  Mortgage  Loan or  disposition  of the  related REO  Property  have been
recovered.

                  "Liquidation  Event":  With respect to any Mortgage Loan, any of the following events: (i) such Mortgage Loan is paid
in full;  (ii) a Final Recovery  Determination  is made as to such Mortgage Loan; or (iii) such Mortgage Loan is removed from the Trust
by reason of (A) its being  purchased,  sold or  replaced  pursuant to or as  contemplated  by Section  2.03 of the Sale and  Servicing
Agreement or (B) the redeeming of the Notes  pursuant to Section 8.07 of the  Indenture.  With respect to any REO  Property,  either of
the following  events:  (i) a Final Recovery  Determination is made as to such REO Property;  or (ii) such REO Property is removed from
the Trust by reason of its being sold or purchased  pursuant to Section 3.23 of the Sale and  Servicing  Agreement or the  redeeming of
the Notes pursuant to Section 8.07 of the Indenture.

                  "Liquidation  Proceeds":  The amount (other than amounts  received in respect of the rental of any REO Property prior
to REO  Disposition)  received by the Servicer in connection  with (i) the taking of all or a part of a Mortgaged  Property by exercise
of the power of eminent  domain or  condemnation,  (ii) the  liquidation  of a defaulted  Mortgage  Loan by means of a trustee's  sale,
foreclosure  sale or otherwise or (iii) the repurchase,  substitution  or sale of a Mortgage Loan or an REO Property  pursuant to or as
contemplated by Section 2.03 or Section 3.23 of the Sale and Servicing Agreement or Section 8.07 of the Indenture.

                  "Loan Group": Loan Group 1 or Loan Group 2, as the context requires.

                  "Loan Group 1": The group of Mortgage Loans  identified in the Mortgage Loan Schedule as having been assigned to Loan
Group 1.

                  "Loan Group 2": The group of Mortgage Loans  identified in the Mortgage Loan Schedule as having been assigned to Loan
Group 2.

                  "Loan-to-Value  Ratio":  As of any date and as to any Mortgage  Loan,  the fraction,  expressed as a percentage,  the
numerator of which is the Stated  Principal  Balance of the Mortgage Loan at origination  and the  denominator of which is the Value of
the related Mortgaged Property.

                  "Lost Note Affidavit":  With respect to any Mortgage Loan as to which the original Mortgage Note has been permanently
lost,  misplaced or destroyed and has not been replaced,  an affidavit from the Originator  certifying that the original  Mortgage Note
has been lost,  misplaced or destroyed  (together  with a copy of the related  Mortgage  Note) and  indemnifying  the Trust against any
loss,  cost or  liability  resulting  from the failure to deliver the original  Mortgage  Note in the form of Exhibit E to the Sale and
Servicing Agreement.

                  "Majority Certificateholder": A Holder of a 50.01% or greater Certificate Percentage Interest of the Certificates.

                  "Master Servicer":  Wells Fargo Bank, N.A., or its successor in interest.

                  "Master  Servicer  Event  of  Termination":  One or more of the  events  described  in  Section  6.06 of the Sale and
Servicing Agreement.

                  "Master  Servicing Fee": With respect to each Mortgage Loan and for any calendar month, an amount equal to the Master
Servicing  Fee Rate  accrued for such month on the same  principal  amount on which  interest on such  Mortgage  Loan  accrues for such
month.

                  "Master Servicing Fee Rate": 0.010% per annum.

                  "Maximum Mortgage Rate": With respect to each Adjustable-Rate  Mortgage Loan, the percentage set forth in the related
Mortgage Note as the maximum Mortgage Rate thereunder.

                  "Maximum Probable Exposure":  With respect to each Payment Date, the amount calculated by the Depositor in accordance
with the Depositor's internal risk management process in respect of similar instruments,  such calculation to be performed as agreed by
the Trust Administrator and the Depositor.

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

                  "MERS® System":  The system of recording transfers of Mortgages electronically maintained by MERS.

                   "MIN":  The Mortgage Identification Number for Mortgage Loans registered with MERS on the MERS® System.

                  "Minimum Mortgage Rate": With respect to each Adjustable-Rate  Mortgage Loan, the percentage set forth in the related
Mortgage Note as the minimum Mortgage Rate thereunder.

                  "MOM Loan":  With  respect to any  Mortgage  Loan,  MERS acting as the  mortgagee of such  Mortgage  Loan,  solely as
nominee for the originator of such Mortgage Loan and its successors and assigns, at the origination thereof.

                  "Monthly  Payment":  With respect to any Mortgage  Loan, the scheduled  monthly  payment of principal and interest on
such Mortgage Loan which is payable by the related Mortgagor from time to time under the related Mortgage Note,  determined:  (a) after
giving  effect to (i) any  Deficient  Valuation  and/or  Debt  Service  Reduction  with  respect to such  Mortgage  Loan and,  (ii) any
modifications  to a Mortgage Loan  pursuant to Section 3.07 of the Sale and  Servicing  Agreement and (iii) any reduction in the amount
of interest  collectible from the related  Mortgagor  pursuant to the Relief Act; (b) without giving effect to any extension granted or
agreed to by the  Servicer  pursuant to Section  3.07 of the Sale and  Servicing  Agreement  and (c) on the  assumption  that all other
amounts, if any, due under such Mortgage Loan are paid when due.

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

                  "Mortgage":  The mortgage,  deed of trust or other instrument  creating a first or second lien on, or first or second
priority security interest in, a Mortgaged Property securing a Mortgage Note.

                  "Mortgage  File":  The  mortgage  documents  listed in  Section  2.01 or Section  2.03(d)  of the Sale and  Servicing
Agreement  pertaining to a particular Mortgage Loan and any additional  documents required to be added to the Mortgage File pursuant to
the Sale and Servicing Agreement.

                  "Mortgage Loan":  Each mortgage loan identified in the Mortgage Loan Schedule.

                  "Mortgage Loan  Schedule":  As of any date, the list of mortgage  loans,  attached  hereto as Exhibit B. The Mortgage
Loan Schedule shall be prepared by the Depositor and shall set forth the following  information  with respect to each Mortgage Loan, as
applicable:

                  (i)      the Mortgage Loan identifying number;

                  (ii)     [reserved];

                  (iii)    the state and zip code of the Mortgaged Property;

                  (iv)     a code  indicating  whether  the  Mortgaged  Property  was  represented  by the  borrower,  at the  time  of
         origination, as being owner-occupied;

                  (v)      the type of Residential Dwelling constituting the Mortgaged Property;

                  (vi)     the original months to maturity;

                  (vii)    the stated remaining months to maturity from the Cut-off Date based on the original amortization schedule;

                  (viii)   the Loan-to-Value Ratio or Combined Loan-to-Value at origination;

                  (ix)     the Mortgage Rate in effect immediately following the Cut-off Date;

                  (x)      the date on which the first Monthly Payment was due on the Mortgage Loan;

                  (xi)     the stated maturity date;

                  (xii)    the amount of the Monthly Payment at origination;

                  (xiii)   the amount of the Monthly Payment due on the first Due Date after the Cut- off Date;

                  (xiv)    the last Due Date on which a Monthly Payment was actually applied to the unpaid Stated Principal Balance;

                  (xv)     the original principal balance of the Mortgage Loan;

                  (xvi)    the Stated Principal Balance of the Mortgage Loan as of the Close of Business on the Cut-off Date;

                  (xvii)   a code  indicating  the purpose of the  Mortgage  Loan (i.e.,  purchase  financing,  rate/term  refinancing,
         cash-out refinancing);

                  (xviii)  the Mortgage Rate at origination;

                  (xix)    a code indicating the  documentation  program (i.e., full  documentation,  limited income  verification,  no
         income verification, alternative income verification);

                  (xx)     the Value of the Mortgaged Property;

                  (xxi)    the sale price of the Mortgaged Property, if applicable; and

                  (xxii)   with respect to any  Adjustable-Rate  Mortgage  Loan,  the rounding  code,  the Minimum  Mortgage  Rate, the
         Maximum Mortgage Rate, the Gross Margin, the next Adjustment Date and the Periodic Rate Cap.

                  The Mortgage Loan Schedule  shall set forth the following  information,  with respect to the Mortgage Loans as of the
Cut-off Date:  (1) the number of Mortgage  Loans  (separately  identifying  the number of Fixed-Rate  Mortgage  Loans and the number of
Adjustable-Rate  Mortgage  Loans);  (2) the current Stated  Principal  Balance of the Mortgage Loans; (3) the weighted average Mortgage
Rate of the Mortgage Loans and (4) the weighted  average  remaining term to maturity of the Mortgage Loans.  The Mortgage Loan Schedule
shall be amended from time to time by the Seller in accordance  with the provisions of the Sale and Servicing  Agreement.  With respect
to any Qualified Substitute Mortgage Loan, Cut-off Date shall refer to the related Cut-off Date for such Mortgage Loan.

                  "Mortgage  Note":  The original  executed note or other evidence of the  indebtedness of a Mortgagor under a Mortgage
Loan.

                  "Mortgage  Pool": The pool of Mortgage Loans,  identified on Exhibit B of the Sale and Servicing  Agreement from time
to time, and any REO Properties acquired in respect thereof.

                  "Mortgage  Rate":  With respect to each  Fixed-Rate  Mortgage Loan, the rate set forth in the related  Mortgage Note.
With respect to each  Adjustable-Rate  Mortgage Loan, the annual rate at which interest accrues on such Mortgage Loan from time to time
in  accordance  with the  provisions  of the related  Mortgage  Note,  which rate (A) as of any date of  determination  until the first
Adjustment  Date  following  the Cut-off Date shall be the rate set forth in the Mortgage  Loan Schedule as the Mortgage Rate in effect
immediately  following the Cut-off Date and (B) as of any date of  determination  thereafter  shall be the rate as adjusted on the most
recent  Adjustment  Date, to equal the sum,  rounded to the next highest or nearest 0.125% (as provided in the Mortgage  Note),  of the
Index,  determined as set forth in the related  Mortgage Note,  plus the related Gross Margin subject to the  limitations  set forth in
the related  Mortgage  Note.  With respect to each  Mortgage Loan that becomes an REO Property,  as of any date of  determination,  the
annual rate determined in accordance with the immediately preceding sentence as of the date such Mortgage Loan became an REO Property.

                  "Mortgaged Property":  The underlying property securing a Mortgage Loan, including any REO Property,  consisting of a
fee simple estate in a parcel of real property improved by a Residential Dwelling.

                  "Mortgagor": The obligor on a Mortgage Note.

                  "Net  Liquidation  Proceeds":  With  respect to any  Liquidated  Mortgage  Loan or any other  disposition  of related
Mortgaged  Property  (including REO  Property),  the related  Liquidation  Proceeds and Insurance  Proceeds net of Advances,  Servicing
Advances,  Servicing Fees and any other accrued and unpaid  servicing fees or ancillary income received and retained in connection with
the liquidation of such Mortgage Loan or Mortgaged Property.

                   "Net  Mortgage  Rate":  With  respect  to any  Mortgage  Loan  (or  the  related  REO  Property)  as of any  date of
determination,  a per annum  rate of  interest  equal to the then  applicable  Mortgage  Rate for such  Mortgage  Loan minus the Master
Servicing Fee Rate and the Servicing Fee Rate.

                  "Net  Prepayment  Interest  Shortfall":  With  respect to any Payment  Date,  the excess,  if any, of any  Prepayment
Interest Shortfalls for such date over the related Compensating Interest.

                  "Net Swap Payment":  In the case of payments made by the Issuing  Entity,  the excess,  if any, of (x) the Fixed Swap
Payment  over (y) the Floating  Swap  Payment and in the case of payments  made by the Swap  Provider,  the excess,  if any, of (x) the
Floating Swap Payment over (y) the Fixed Swap Payment.  In each case, the Net Swap Payment shall not be less than zero.

                  "New Lease":  Any lease of REO Property entered into on behalf of the Trust,  including any lease renewed or extended
on behalf of the Trust if the Trust has the right to  renegotiate  the terms of such lease,  which lease shall not be more than 30 days
in length.

                  "Nonrecoverable  Advance":  Any Advance or Servicing  Advance  previously made or proposed to be made in respect of a
Mortgage Loan or REO Property that, in the good faith business judgment of the Servicer,  will not be ultimately  recoverable from Late
Collections,  Insurance  Proceeds,  Liquidation  Proceeds or  condemnation  proceeds on such  Mortgage Loan or REO Property as provided
herein.

                  "Note":  Any one of the Asset Backed  Notes,  Series  2007-1,  Class 1-A-1,  Class 2-A-1,  Class 2-A-2,  Class 2-A-3,
Class 2-A-4,  Class M-1, Class M-2, Class M-3, Class M-4,  Class M-5, Class M-6, Class M-7-A,  Class M-7-B,  Class M-8-A,  Class M-8-B,
Class M-9 and Class M-10 issued under the Indenture.

                  "Note  Account":  The trust account or accounts  created and maintained by the Securities  Administrator  pursuant to
Section 3.01 of the Indenture,  which shall be entitled "Note Account,  Wells Fargo Bank, N.A., as Securities  Administrator,  in trust
for the registered holders of Newcastle  Mortgage  Securities Trust 2007-1,  Asset-Backed  Notes." The Note Account must be an Eligible
Account.

                   "Note  Balance":  With respect to any Note  immediately  prior to any Payment  Date,  an amount equal to the Initial
Note Balance thereof plus any Subsequent  Recoveries  added to the Note Balance of such Note pursuant to Section 3.05 of the Indenture,
reduced by (A) the sum of all amounts  actually  distributed  in respect of principal of such Class and (B) Realized  Losses  allocated
thereto on all prior Payment Dates.

                  "Note Margin":  With respect to each Class of Notes, the margin set forth below:

                                                Note Margin
                                            _________________________
                                   Class       (1) (%)      (2) (%)
                                  ___________________________________
                                   1-A-1       0.190%        0.380%
                                   2-A-1       0.130%        0.260%
                                   2-A-2       0.160%        0.320%
                                   2-A-3       0.230%        0.460%
                                   2-A-4       0.340%        0.680%
                                    M-1        0.500%        0.750%
                                    M-2        0.650%        0.975%
                                    M-3        0.750%        1.125%
                                    M-4        1.150%        1.725%
                                    M-5        1.250%        1.875%
                                    M-6        1.800%        2.700%
                                   M-7-A       2.000%        3.000%
                                   M-7-B       2.000%        3.000%
                                   M-8-A       2.000%        3.000%
                                   M-8-B       2.000%        3.000%
                                    M-9        2.000%        3.000%
                                   M-10        2.000%        3.000%
              _______________
              (1)   For the Interest Accrual Period for each Payment Date on or prior to the Coupon Step Up Date.
              (2)   For the Interest Accrual Period for each Payment Date thereafter.

                  "Note Owner": The Beneficial Owner of a Note.

                  "Note  Rate":  With  respect to any Class of Notes and any Payment  Date,  a rate per annum equal to the least of (i)
One-Month  LIBOR plus the related Note Margin for such Payment  Date,  (ii)  11.500% per annum and (iii) the  Available  Funds Rate for
such Class and such Payment Date.

                  "Note  Register":  The register  maintained by the Note Registrar in which the Note  Registrar  shall provide for the
registration of Notes and of transfers and exchanges of Notes.

                  "Note  Registrar":  The  Securities  Administrator,  in its  capacity  as Note  Registrar,  or any  successor  to the
Securities Administrator in such capacity.

                  "Noteholder" or "Holder":  The Person in whose name a Note is registered in the Note Register,  except that, any Note
registered in the name of the Issuing Entity,  the Indenture  Trustee (in its capacity as indenture  trustee under the Indenture),  the
Seller  or any  Affiliate  of any of them  shall  be  deemed  not to be a holder  or  holders,  nor  shall  any so owned be  considered
outstanding,  for purposes of giving any request, demand,  authorization,  direction,  notice, consent or waiver under the Indenture or
the Trust Agreement;  provided that, in determining  whether the Indenture Trustee shall be protected in relying upon any such request,
demand,  authorization,  direction, notice, consent or waiver, only Notes that a Responsible Officer of the Securities Administrator or
the Owner Trustee  actually knows to be so owned shall be so  disregarded.  Owners of Notes that have been pledged in good faith may be
regarded as Holders if the pledgee  establishes to the satisfaction of the Securities  Administrator or the Owner Trustee the pledgee's
right so to act with  respect to such Notes and that the pledgee is not the Issuing  Entity,  any other  obligor  upon the Notes or any
Affiliate of any of the foregoing Persons.

                  "Officers'  Certificate":  A certificate  signed by the Chairman of the Board,  the Vice  Chairman of the Board,  the
President or a vice president  (however  denominated),  and by the  Treasurer,  the  Secretary,  or one of the assistant  treasurers or
assistant secretaries of the Servicer, the Originator or the Depositor, as applicable.

                   "Opinion  of  Counsel":  A written  opinion  of  counsel  acceptable  to the  Indenture  Trustee  or the  Securities
Administrator,  as applicable,  in its reasonable  discretion  which counsel may be in-house  counsel for the Servicer if acceptable to
the Indenture Trustee and the Rating Agencies or counsel for the Depositor, as the case may be.

                  "Optional  Redemption  Date":  The first Payment Date on which the Majority  Certificateholder  may opt to redeem the
Notes pursuant to Section 8.07 of the Indenture.

                  "Original  Mortgage  Loan":  Any of the  Mortgage  Loans  included  in the Trust  Fund as of the  Closing  Date.  The
aggregate principal balance of the Original Mortgage Loans as of the Cut-off Date is equal to $1,087,942,488.90.

                  "Original  Subordinate  Principal  Balance":  The aggregate Note Balance of the  Subordinate  Notes as of the Closing
Date.

                   "Originator":  Fremont  Investment  & Loan,  or its  successor in interest,  in its  capacity as  originator  of the
Mortgage Loans.

                  "Outstanding":  With  respect  to the  Notes,  as of the  date of  determination,  all  Notes  theretofore  executed,
authenticated and delivered under this Indenture except:

                  (i)      Notes  theretofore  canceled  by the  Note  Registrar  or  delivered  to the  Securities  Administrator  for
         cancellation; and

                  (ii)     Notes in exchange  for or in lieu of which  other  Notes have been  executed,  authenticated  and  delivered
         pursuant to the Indenture  unless proof  satisfactory  to the  Securities  Administrator  is presented that any such Notes are
         held by a holder in due course;

                  "Overcollateralization  Amount": For any Payment Date, the amount equal to (i) the aggregate Stated Principal Balance
of the Mortgage  Loans as of the last day of the related Due Period (after giving effect to scheduled  payments of principal due during
the related Due Period,  to the extent  received or advanced,  and  unscheduled  collections of principal  received  during the related
Prepayment  Period)  minus (ii) the  aggregate  Note Balance of the Notes as of such Payment Date after giving effect to payments to be
made on such Payment Date.

                   "Overcollateralization  Deficiency  Amount":  With  respect to any Payment  Date,  the amount,  if any, by which the
Required  Overcollateralization  Amount  exceeds the  Overcollateralization  Amount on such  Payment  Date  (assuming  that 100% of the
Principal Remittance Amount is applied as a principal payment on such Payment Date).

                  "Overcollateralization Floor":  With respect to the Notes, $5,439,712.44.

                  "Overcollateralization  Increase Amount": With respect to any Payment Date, the lesser of (x) the Excess Interest for
such Payment Date and (y) the Overcollateralization Deficiency Amount for such Payment Date.

                   "Owner Trust  Estate":  The corpus of the Issuing  Entity  created by the Trust  Agreement  which  consists of items
referred to in Section 3.01 of the Trust Agreement.

                  "Owner Trustee":  Wilmington Trust Company,  acting not in its individual  capacity but solely as Owner Trustee,  and
its successors and assigns or any successor owner trustee appointed pursuant to the terms of the Trust Agreement.

                   "Paying  Agent":  Any paying agent or co-paying  agent  appointed  pursuant to Section 3.03 of the Indenture,  which
initially shall be the Securities Administrator.

                   "Payment  Date":  The 25th day of any month, or if such 25th day is not a Business Day, the Business Day immediately
following such 25th day, commencing in July 2007.

                  "Percentage  Interest":  With respect to any Note, the percentage  obtained by dividing the Note Balance of such Note
by the  aggregate  Note  Balances of all Notes of that Class.  With respect to any  Certificate,  the  percentage as stated on the face
thereof.

                  "Periodic Rate Cap": With respect to each Adjustable-Rate  Mortgage Loan and any Adjustment Date therefor,  the fixed
percentage set forth in the related  Mortgage  Note,  which is the maximum amount by which the Mortgage Rate for such Mortgage Loan may
increase or decrease  (without  regard to the Maximum  Mortgage Rate or the Minimum  Mortgage  Rate) on such  Adjustment  Date from the
Mortgage Rate in effect immediately prior to such Adjustment Date.

                  "Permitted  Investments":  Any one or more of the following obligations or securities acquired at a purchase price of
not greater than par,  regardless of whether  issued or managed by the  Depositor,  the Servicer,  the Master  Servicer,  the Indenture
Trustee or any of their  respective  Affiliates or for which an Affiliate of the Indenture  Trustee or the Master Servicer serves as an
advisor:

                  (1)      direct  obligations of, or obligations  fully  guaranteed as to timely payment of principal and interest by,
         the  United  States or any agency or  instrumentality  thereof,  provided  such  obligations  are backed by the full faith and
         credit of the United States;

                  (2)       (A) demand and time deposits in,  certificates  of deposit of,  bankers'  acceptances  issued by or federal
         funds sold by any depository  institution  or trust company  (including  the Indenture  Trustee or the Master  Servicer or its
         agent acting in their respective  commercial  capacities)  incorporated  under the laws of the United States of America or any
         state thereof and subject to  supervision  and  examination by federal  and/or state  authorities,  so long as, at the time of
         such investment or contractual  commitment  providing for such investment,  such depository  institution or trust company (or,
         if the only Rating Agency is S&P, in the case of the principal  depository  institution  in a depository  institution  holding
         company,  debt obligations of the depository  institution  holding company) or its ultimate parent has a short-term  uninsured
         debt rating in one of the two highest  available  ratings of Moody's and the highest  available  rating  category of Fitch and
         S&P and provided that each such  investment has an original  maturity of no more than 365 days; and provided  further that, if
         the only Rating Agency is S&P and if the depository or trust company is a principal  subsidiary of a bank holding  company and
         the debt  obligations of such  subsidiary are not separately  rated,  the applicable  rating shall be that of the bank holding
         company;  and provided  further  that,  if the original  maturity of such  short-term  obligations  of a domestic  branch of a
         foreign  depository  institution  or trust company shall exceed 30 days, the short-term  rating of such  institution  shall be
         A-1+ in the case of S&P if S&P is the Rating  Agency;  and (B) any other  demand or time  deposit  or  deposit  which is fully
         insured by the FDIC;

                  (3)      repurchase  obligations  with a term not to exceed 30 days with respect to any security  described in clause
         (i) above and entered  into with a depository  institution  or trust  company  (acting as  principal)  rated F-1+ or higher by
         Fitch,  P-1 by Moody's  and rated A-1+ or higher by S&P,  provided,  however,  that  collateral  transferred  pursuant to such
         repurchase  obligation  must be of the type  described  in clause  (i) above and must (A) be valued  daily at  current  market
         prices plus accrued interest,  (B) pursuant to such valuation,  be equal, at all times, to 105% of the cash transferred by the
         Indenture  Trustee in exchange for such collateral and (C) be delivered to the Indenture  Trustee or, if the Indenture Trustee
         is supplying the collateral,  an agent for the Indenture Trustee,  in such a manner as to accomplish  perfection of a security
         interest in the  collateral by possession  of  certificated  securities;  provided,  that,  such  repurchase  obligations  are
         accounted for by the Trust as secured loans to the repurchase  counterparty in accordance with Financial  Accounting  Standard
         140;

                  (4)      securities bearing interest or sold at a discount that are issued by any corporation  incorporated under the
         laws of the United  States of America or any State  thereof  and that are rated by a Rating  Agency in its  highest  long-term
         unsecured rating category at the time of such investment or contractual commitment providing for such investment;

                  (5)      commercial paper (including both non-interest-bearing  discount obligations and interest-bearing obligations
         payable on demand or on a  specified  date not more than 30 days  after the date of  acquisition  thereof)  that is rated by a
         Rating Agency in its highest short-term unsecured debt rating available at the time of such investment;

                  (6)      units of money market funds,  including those money market funds managed or advised by the Indenture Trustee
         or the Master  Servicer  or its  Affiliates,  that have been rated  "AAA" by Fitch (if rated by Fitch),  "Aaa" by Moody's  and
         "AAA" by S&P; and

                  (7)      if previously confirmed in writing to the Indenture Trustee or the Master Servicer,  any other demand, money
         market or time deposit,  or any other  obligation,  security or  investment,  as may be  acceptable to the Rating  Agencies in
         writing as a permitted  investment of funds backing  securities having ratings equivalent to its highest initial rating of the
         Class A Notes;

provided,  that no instrument  described  hereunder  shall  evidence  either the right to receive (a) only interest with respect to the
obligations  underlying  such  instrument  or (b) both  principal  and interest  payments  derived  from  obligations  underlying  such
instrument  and the interest and  principal  payments with respect to such  instrument  provide a yield to maturity at par greater than
120% of the yield to  maturity at par of the  underlying  obligations  and  provided,  further,  that the Trust shall not vote any such
Permitted  Investments unless such vote is on matters that are "protective  rights" under United States Generally  Accepted  Accounting
Principles.

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

                  "Plan":  Any  employee  benefit  plan or  certain  other  retirement  plans and  arrangements,  including  individual
retirement  accounts  and  annuities,  Keogh plans and bank  collective  investment  funds and  insurance  company  general or separate
accounts in which such plans, accounts or arrangements are invested, that are subject to ERISA or Section 4975 of the Code.

                  "Plan  Assets":  Assets of a Plan as  determined  pursuant to the  Department  of Labor  regulations  promulgated  at
Section 2510.3-101.

                  "Pool Balance": As of any date of determination,  the aggregate Stated Principal Balance of the Mortgage Loans in the
Mortgage Pool as of such date.

                  "Prepayment Assumption": As set forth in the Prospectus Supplement.

                  "Prepayment  Charge":  With respect to any Mortgage Loan, the charges or premiums,  if any, due in connection  with a
full or partial Principal Prepayment of such Mortgage Loan in accordance with the terms thereof.

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

                  "Prepayment Interest  Shortfall":  With respect to any Payment Date, for each Mortgage Loan that was the subject of a
Principal  Prepayment  in full  during  the  portion of the  related  Prepayment  Period  occurring  from the first day of the  related
Prepayment  Period  through the last day of the calendar month  preceding the month in which such Payment Date occurs,  an amount equal
to interest on the amount of such  Principal  Prepayment for the number of days  commencing on the date such  Principal  Prepayment was
applied and ending on the last day of the calendar month preceding the month in which such Payment Date occurs.

                  "Prepayment  Period":  With respect to any Payment Date, the period commencing on the 16th day of the month preceding
the month in which such Payment Date falls (or, in the case of the first  Payment  Date,  from June 1, 2007) and ending on the 15th day
of the calendar month in which such Payment Date occurs.

                  "Principal  Balance":  As to any  Mortgage  Loan other than a  Liquidated  Mortgage  Loan,  and any day,  the related
Cut-off Date Principal  Balance,  minus all collections  credited against the Cut-off Date Principal Balance of any such Mortgage Loan.
For  purposes of this  definition,  a  Liquidated  Mortgage  Loan shall be deemed to have a Principal  Balance  equal to the  Principal
Balance of the  related  Mortgage  Loan as of the final  recovery  of related  Liquidation  Proceeds  and a  Principal  Balance of zero
thereafter.  As to any REO Property and any day, the Principal  Balance of the related Mortgage Loan immediately prior to such Mortgage
Loan becoming REO Property minus any REO Principal Amortization received with respect thereto on or prior to such day.

                  "Principal  Distribution  Amount":  With respect to any Payment Date, the sum of (i) the Group 1 Principal Remittance
Amount and the Group 2 Principal  Remittance  Amount minus the Excess  Overcollateralization  Amount,  if any for such Payment Date and
(ii) the Overcollateralization Increase Amount, if any, for such Payment Date.

                   "Principal  Prepayment":  Any payment of principal  made by the  Mortgagor  on a Mortgage  Loan which is received in
advance of its  scheduled  Due Date and which is not  accompanied  by an amount of interest  representing  the full amount of scheduled
interest due on any Due Date in any month or months subsequent to the month of prepayment.

                  "Principal  Remittance Amount":  With respect to any Payment Date, the sum of the Group 1 Principal Remittance Amount
and the Group 2 Principal Remittance Amount for such Payment Date.

                  "Proceeding": Any suit in equity, action at law or other judicial or administrative proceeding.

                  "Prospectus  Supplement":  That certain Prospectus Supplement dated July 11, 2007, relating to the public offering of
the Notes.

                  "Purchase  Agreement":  The Master  Mortgage Loan  Purchase and Interim  Servicing  Agreement,  dated March 15, 2007,
between the Originator and the Seller.

                   "Purchase  Price":  With respect to any Mortgage  Loan or REO Property to be purchased by the Seller or the Servicer
pursuant to or as contemplated by Section 2.03 of the Sale and Servicing Agreement,  and as confirmed by an Officers'  Certificate from
the party  purchasing  the Mortgage Loan to the Indenture  Trustee and the Master  Servicer,  an amount equal to the sum of (i) 100% of
the Stated  Principal  Balance thereof as of the date of purchase,  (ii) in the case of (x) a Mortgage Loan,  accrued  interest on such
Stated  Principal  Balance at the applicable  Mortgage Rate in effect from time to time from the Due Date as to which interest was last
covered by a payment by the  Mortgagor  or an Advance by the  Servicer,  which  payment or Advance had as of the date of purchase  been
paid pursuant to 3.05 of the Indenture,  through the end of the calendar month in which the purchase is to be effected,  and (y) an REO
Property,  the sum of (1) accrued  interest on such Stated  Principal  Balance at the  applicable  Mortgage Rate in effect from time to
time from the Due Date as to which  interest was last covered by a payment by the  Mortgagor or an advance by the Servicer  through the
end of the calendar  month  immediately  preceding  the calendar  month in which such REO Property was  acquired,  plus (2) REO Imputed
Interest for such REO Property for each calendar month  commencing  with the calendar month in which such REO Property was acquired and
ending  with the  calendar  month in which  such  purchase  is to be  effected,  net of the total of all net rental  income,  Insurance
Proceeds,  Net  Liquidation  Proceeds  and Advances  that as of the date of purchase had been paid as or to cover REO Imputed  Interest
pursuant to Section 3.05 of the  Indenture,  (iii) any  unreimbursed  Servicing  Advances and  Advances and any unpaid  Servicing  Fees
allocable to such Mortgage Loan or REO Property,  (iv) any amounts previously  withdrawn from the Collection Account in respect of such
Mortgage  Loan or REO Property  pursuant to Section 3.23 of the Sale and  Servicing  Agreement  and (v) in the case of a Mortgage  Loan
required to be purchased pursuant to Section 2.03 of the Sale and Servicing  Agreement,  expenses reasonably incurred or to be incurred
by the Servicer or the  Indenture  Trustee in respect of the breach or defect  giving rise to the purchase  obligation,  including  any
costs and damages  incurred by the Trust in connection  with any  violation by such loan of any predatory or abusive  lending law. With
respect to the Originator and any Mortgage Loan or REO Property to be purchased  pursuant to or as  contemplated by Section 2.03 of the
Sale and Servicing  Agreement,  and as confirmed by an Officer's  Certificate  to the  Indenture  Trustee and the Master  Servicer,  an
amount  equal to the amount  set forth  pursuant  to the terms of the  Master  Agreement,  and to the  extent  that the amount  payable
pursuant to the Master  Agreement  relates to a portion of the Mortgage Loan not conveyed  pursuant to the Assignment  Agreement (i.e.,
collections  in respect of interest and principal due on or before the Cut-off  Date),  such amount shall be payable by the  Originator
to the Assignor in accordance with the Master Agreement and collections of interest accrued prior to the Cut-off Date.

                  "Qualified Insurer": Any insurance company acceptable to Fannie Mae.

                  "Qualified  Substitute  Mortgage Loan": A mortgage loan substituted for a Deleted Mortgage Loan pursuant to the terms
of the Sale and Servicing  Agreement which must, on the date of such substitution,  (i) have an outstanding  principal  balance,  after
application  of all  scheduled  payments of principal and interest due during or prior to the month of  substitution,  not in excess of
and not more than five  percent  (5%) less than the Stated  Principal  Balance of the Deleted  Mortgage  Loan as of the Due Date in the
calendar  month  during  which  the  substitution  occurs,  (ii)  have a  Mortgage  Interest  Rate not less than (and not more than one
percentage  point in excess of) the Mortgage  Interest Rate of the Deleted  Mortgage Loan, (iii) have a Net Mortgage Rate not less than
(and not more than one percentage  point in excess of) the Net Mortgage Rate of the Deleted  Mortgage Loan,  (iv) have a remaining term
to maturity not greater than (and not more than one year less than) that of the Deleted  Mortgage  Loan,  (v) have the same Due Date as
the Due Date on the Deleted  Mortgage  Loan,  (vi) have a  Loan-to-Value  Ratio,  and in the case of a second  lien  Mortgage  Loan,  a
Combined  Loan-to-Value Ratio as of the date of substitution equal to or lower than the Loan-to-Value Ratio and Combined  Loan-to-Value
Ratio of the Deleted  Mortgage  Loan as of such date,  (vii) have a Credit Score for the related  Mortgagor  not lower than that of the
Mortgagor under the Deleted  Mortgage Loan;  (viii) conform to each  representation  and warranty set forth in  Subsection 7.02  of the
Purchase  Agreement;  (ix) have a risk grading  determined by the Originator at least equal to the risk grading assigned to the Deleted
Mortgage  Loan, (x) have been  underwritten  pursuant to the same or more  restrictive  underwriting  criteria on the Deleted  Mortgage
Loan and (xi) be the same type of mortgage  loan (i.e.,  lien status,  fixed or adjustable  rate with the same Gross  Margin,  Periodic
Rate Cap and Index as the Deleted Mortgage Loan, and if an Adjustable Rate Mortgage Loan, the same type (e.g., 3/1, 5/1).

                   "Rating Agency or Rating Agencies":  Moody's and S&P or their  successors.  If such agencies or their successors are
no longer in existence,  "Rating  Agencies"  shall be such nationally  recognized  statistical  rating  agencies,  or other  comparable
Persons, designated by the Depositor, notice of which designation shall be given to the Indenture Trustee and Servicer.

                  "Realized  Loss":  With respect to any Liquidated  Mortgage Loan, the amount of loss realized equal to the portion of
the Stated Principal Balance  remaining unpaid after  application of all Net Liquidation  Proceeds in respect of such Mortgage Loan. If
the Servicer  receives  Subsequent  Recoveries  with respect to any Mortgage Loan, the amount of the Realized Loss with respect to that
Mortgage Loan will be reduced to the extent such recoveries are applied to principal payments on any Payment Date.

                  "Record  Date":  With  respect to each  Payment  Date and any Notes  that are  Book-Entry  Notes,  the  Business  Day
immediately  preceding  such Payment Date.  With respect to each Payment Date and any  Definitive  Notes,  the last Business Day of the
month immediately preceding the month in which such Payment Date occurs.

                  "Redemption Price": As defined in Section 8.07 of the Indenture.

                  "Reference Banks":  Those banks (i) with an established place of business in London,  England,  (ii) not controlling,
under the control of or under common  control with the  Originator or the Servicer or any  Affiliate  thereof and (iii) which have been
designated  as such by the  Securities  Administrator  after  consultation  with  the  Depositor  and the  Majority  Certificateholder;
provided,  however,  that if fewer than two of such banks  provide a LIBOR rate,  then any  leading  banks  selected by the  Securities
Administrator which are engaged in transactions in United States dollar deposits in the international Eurocurrency market.

                   "Refinanced  Mortgage  Loan": A Mortgage Loan the proceeds of which were not used to purchase the related  Mortgaged
Property.

                  "Registered  Holder":  The Person in whose name a Note is registered in the Note  Register on the  applicable  Record
Date.

                  "Regulation AB": Subpart 229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.  §§229.1100-229.1123,  as such
may be amended from time to time, and subject to such  clarification and  interpretation as have been provided by the Commission in the
adopting release  (Asset-Backed  Securities,  Securities Act Release No. 33-8518,  70 Fed. Reg. 1,506,  1,531 (Jan. 7, 2005)) or by the
staff of the  Commission  and publicly  available,  or as may be provided by the Commission or its staff from time to time and publicly
available.

                  "Relevant  Servicing  Criteria":  The Servicing Criteria applicable to the various parties, as set forth on Exhibit I
to the Sale and Servicing  Agreement.  For  clarification  purposes,  multiple  parties can have  responsibility  for the same Relevant
Servicing  Criteria.  With respect to a Servicing Function  Participant  engaged by the Servicer,  the Master Servicer,  the Securities
Administrator,  the  Indenture  Trustee,  and the  Custodian,  the term  "Relevant  Servicing  Criteria"  may refer to a portion of the
Relevant Servicing Criteria applicable to such parties.

                   "REIT":  Real Estate Investment Trust.

                  "Relief Act":  The  Servicemembers  Civil Relief Act, as amended,  or any similar  state or local laws  providing for
similar relief.

                  "Relief Act Interest Shortfall":  With respect to any Payment Date, for any Mortgage Loan with respect to which there
has been a  reduction  in the  amount of  interest  collectible  thereon  for the most  recently  ended  Due  Period as a result of the
application  of the Relief Act, the amount by which (i) interest  collectible on such Mortgage Loan during such Due Period is less than
(ii) one month's  interest on the Stated  Principal  Balance of such  Mortgage  Loan at the Mortgage Rate for such Mortgage Loan before
giving effect to the application of the Relief Act.

                  "Remittance  Report": A report prepared by the Servicer and delivered to the Master Servicer pursuant to Section 4.01
of the Sale and Servicing Agreement.

                   "Rents from Real  Property":  With respect to any REO Property,  gross income of the character  described in Section
856(d) of the Code as being included in the term "rents from real property."

                  "REO Account": The account or accounts maintained,  or caused to be maintained,  by the Servicer in respect of an REO
Property pursuant to Section 3.23 of the Sale and Servicing Agreement.

                  "REO Disposition": The sale or other disposition of an REO Property on behalf of the Trust.

                  "REO Imputed  Interest":  As to any REO  Property,  for any calendar  month during which such REO Property was at any
time part of the Trust, one month's  interest at the applicable Net Mortgage Rate on the Stated Principal  Balance of such REO Property
(or, in the case of the first such calendar  month,  of the related  Mortgage Loan, if  appropriate) as of the close of business on the
Payment Date in such calendar month.

                  "REO Principal  Amortization":  With respect to any REO Property,  for any calendar month, the excess, if any, of (a)
the  aggregate  of all amounts  received in respect of such REO  Property  during such  calendar  month,  whether in the form of rental
income, sale proceeds  (including,  without  limitation,  that portion of the proceeds paid in connection with a purchase of all of the
Notes  pursuant to Section  8.07 of the  Indenture  that is allocable to such REO  Property) or  otherwise,  net of any portion of such
amounts (i) payable  pursuant to Section  3.23(c) of the Sale and Servicing  Agreement in respect of the proper  operation,  management
and  maintenance  of such REO Property or (ii) payable or  reimbursable  to the  Servicer  pursuant to Section  3.23(d) of the Sale and
Servicing  Agreement  for unpaid  Servicing  Fees in respect of the related  Mortgage  Loan and  unreimbursed  Servicing  Advances  and
Advances in respect of such REO  Property  or the  related  Mortgage  Loan,  over (b) the REO  Imputed  Interest in respect of such REO
Property for such calendar month.

                  "REO  Property":  A  Mortgaged  Property  acquired  by the  Servicer on behalf of the Trust  through  foreclosure  or
deed-in-lieu of foreclosure, as described in Section 3.23 of the Sale and Servicing Agreement.

                  "Reportable Event":  As defined in Section 4.02(a)(ii) of the Sale and Servicing Agreement.

                  "Request for Release":  A release  signed by a Servicing  Officer,  in the form of Exhibit C attached to the Sale and
Servicing Agreement.

                  "Required  Overcollateralization  Amount": With respect to any Payment Date, (i) prior to the Stepdown Date, 4.75% of
the aggregate  Stated  Principal  Balance of the Original  Mortgage  Loans as of the Cut-off  Date,  (ii) on or after the Stepdown Date
provided a Trigger Event is not in effect,  the greater of (1) the lesser of (A) 4.75% of the  aggregate  Stated  Principal  Balance of
the Original  Mortgage Loans as of the Cut-off Date and (B) 9.50% of the aggregate  Stated  Principal  Balance of the Mortgage Loans as
of the last day of the related Due Period (after  giving  effect to scheduled  payments of principal due during the related Due Period,
to the extent received or advanced,  and unscheduled  collections of principal  received during the related  Prepayment Period) and (2)
the  Overcollateralization  Floor  and  (iii)  on  or  after  the  Stepdown  Date  if a  Trigger  Event  is  in  effect,  the  Required
Overcollateralization  Amount for the  immediately  preceding  Payment Date.  Notwithstanding  the foregoing,  on and after any Payment
Date  following the reduction of the aggregate Note Balance of the Notes to zero,  the Required  Overcollateralization  Amount shall be
zero.

                   "Reserve  Interest Rate":  With respect to any Interest  Determination  Date, the rate per annum that the Securities
Administrator  determines to be either (i) the arithmetic  mean (rounded  upwards if necessary to the nearest whole multiple of 1/16 of
1%) of the  one-month  United  States  dollar  lending rates which banks in The City of New York selected by the Sponsor are quoting on
the relevant  Interest  Determination  Date to the principal  London offices of leading banks in the London interbank market or (ii) in
the event that the Securities  Administrator  can determine no such  arithmetic  mean, in the case of any Interest  Determination  Date
after the initial  Interest  Determination  Date,  the lowest  one-month  United States  dollar  lending rate which such New York banks
selected by the Sponsor are quoting on such Interest Determination Date to leading European banks.

                   "Residential Dwelling":  Any one of the following:  (i) an attached,  detached or semi-detached one-family dwelling,
(ii) an attached,  detached or semi-detached  two-to four-family  dwelling,  (iii) a one-family  dwelling unit in a Fannie Mae eligible
condominium project, (iv) an attached,  detached or semi-detached  one-family dwelling in a planned unit development,  none of which is
a co-operative,  mobile home (as defined in 42 United States Code,  Section  5402(6)) or  manufactured  home (other than a manufactured
home which is considered to be real property under the laws of state in which such property is located).

                  "Responsible  Officer":  When used with respect to the Indenture Trustee,  the Owner Trustee,  the Master Servicer or
the  Securities  Administrator,  any vice  president,  any assistant  vice  president,  the  Secretary,  any assistant  secretary,  the
Treasurer,  any assistant  treasurer,  the Cashier, any assistant cashier, any trust officer or assistant trust officer, the Controller
and any assistant controller,  in each case, with direct  responsibility for the transactions  contemplated hereby and, with respect to
a particular  matter,  to whom such matter is referred  because of such  officer's  knowledge of and  familiarity  with the  particular
subject.

                  "Reuters  Screen LIBOR01 Page":  The display page currently so designated on the Reuters  Monitor Money Rates Service
(or such other page as may replace that page on that service for the purpose of displaying comparable rates or prices).

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

                  "Sale and Servicing Agreement":  The Sale and Servicing Agreement dated as of July 12, 2007, among the Depositor, the
Servicer, the Master Servicer, the Securities Administrator, the Issuing Entity and the Indenture Trustee.

                  "Sarbanes-Oxley  Act": The  Sarbanes-Oxley  Act of 2002 and the rules and  regulations of the Commission  promulgated
thereunder (including any published interpretations thereof by the Commission's staff).

                  "Securities Act": The Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

                  "Securities  Administrator":  Wells Fargo Bank, N.A., a national banking  association or any successor thereto or any
successor hereunder.

                   "Seller":  NIC WL II LLC, and its  successors  and  assigns,  in its  capacity as seller  under the  Assignment  and
Recognition Agreement.

                  "Senior Credit Enhancement Percentage":  For any Payment Date, the percentage equivalent of a fraction, the numerator
of which is the sum of (x) the aggregate Note Balance of the Subordinate Notes and (y) the  Overcollateralization  Amount, in each case
after  taking into  account  payments of the  Principal  Distribution  Amount to the Holders of the Notes then  entitled to payments of
principal  on such  Payment  Date and the  denominator  of which is the  aggregate  Stated  Principal  Balance of the  Mortgage  Loans,
calculated as of the last day of the related Due Period and after giving effect to unscheduled  payments of principal  received  during
the related Prepayment Period.

                  "Senior Notes":   The Class A Notes.

                  "Senior  Principal  Distribution  Amount":  With respect to any Payment Date, the sum of the Group 1 Senior Principal
Distribution Amount and the Group 2 Senior Principal Distribution Amount for such Payment Date.

                   "Servicer":  Nationstar  Mortgage  LLC, or any  successor  servicer  appointed as provided in the Sale and Servicing
Agreement, in its capacity as Servicer under the Sale and Servicing Agreement.

                  "Servicer  Event of  Termination":  One or more of the events  described  in Section  6.01 of the Sale and  Servicing
Agreement.

                  "Servicer  Remittance  Date":  With  respect to any Payment  Date,  the 18th day of the  calendar  month in which the
Payment Date occurs or, if such 18th day is not a Business Day, the Business Day preceding such 18th day.

                  "Servicing Advance Reimbursement Amount": As defined in Section 3.29 of the Sale and Servicing Agreement.

                  "Servicing Advances":  The reasonable  "out-of-pocket" costs and expenses incurred by the Servicer in connection with
a default,  delinquency or other unanticipated event by the Servicer in the performance of its servicing  obligations,  including,  but
not  limited to, the cost of (i) the  preservation,  restoration  and  protection  of a Mortgaged  Property,  (ii) any  enforcement  or
judicial  proceedings,  including but not limited to  foreclosures,  in respect of a particular  Mortgage  Loan,  (iii) the  management
(including  reasonable  fees in connection  therewith) and  liquidation of any REO Property and (iv) the performance of its obligations
under  Section 3.01,  Section 3.09,  Section  3.14,  Section 3.16 and Section 3.23 of the Sale and  Servicing  Agreement.  The Servicer
shall not be required to make any Nonrecoverable Advances.

                  "Servicing  Fee": With respect to each Mortgage Loan and for any calendar month, an amount equal to the Servicing Fee
Rate  accrued  for such month (or in the event of any  Principal  Prepayment  in full made by the  Mortgagor  during  such  month,  the
Servicing Fee Rate accrued for the number of days covered by the payment of interest  accompanying  the Principal  Prepayment in full),
on the same  principal  amount on which  interest on such Mortgage Loan accrues for such month.  A portion of such Servicing Fee may be
retained by any Sub-Servicer as its servicing compensation.

                  "Servicing Fee Rate": 0.50% per annum.

                  "Servicing Function Participant":  Any Sub-Servicer,  Subcontractor or any other Person, other than the Servicer, the
Master Servicer,  the Indenture  Trustee,  the Custodian and the Securities  Administrator,  that is determined to be "participating in
the servicing function" within the meaning of Item 1122 of Regulation AB, without regard to any threshold referenced therein.

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

                  "Servicing Standard": Shall mean the standards set forth in Section 3.01 of the Sale and Servicing Agreement.

                  "Servicing  Transfer  Costs":  Shall mean all  reasonable  costs and  expenses  incurred  by the Master  Servicer  in
connection  with the transfer of servicing  from a  predecessor  servicer,  including,  without  limitation,  any  reasonable  costs or
expenses  associated with the complete transfer of all servicing data and the completion,  correction or manipulation of such servicing
data as may be required by the Master  Servicer to correct any errors or  insufficiencies  in the servicing data or otherwise to enable
the Master Servicer (or any successor servicer  appointed pursuant to Section 6.02 of the Sale and Servicing  Agreement) to service the
Mortgage Loans properly and effectively and any fees associated with MERS.

                  "Significance  Estimate": With respect to any Payment Date, and in accordance with Item 1115 of Regulation AB, shall
be an amount determined based on the reasonable  goodfaith estimate by the Depositor or its affiliate of the aggregate Maximum Probable
Exposure of the outstanding Notes to the Interest Rate Swap Agreement and the Interest Rate Cap Agreement.

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

                  "60+ Delinquency  Percentage (Rolling Three Month)":  With respect to any Payment Date, the average of the percentage
equivalents of the fractions  determined  for each of the three  immediately  preceding Due Periods,  the numerator of each of which is
equal to the Delinquency  Amount for such Due Period,  and the denominator of each of which is the aggregate Stated  Principal  Balance
of the Mortgage Loans as of the end of such Due Period.

                  "Sponsor":  Newcastle Investment Corp., a Maryland corporation.

                  "Stated  Principal  Balance":  With respect to any Mortgage Loan: (a) as of any date of  determination  up to but not
including  the Payment Date on which the  proceeds,  if any, of a  Liquidation  Event with respect to such Mortgage Loan would be paid,
the outstanding  principal  balance of such Mortgage Loan as of the Cut-off Date as shown in the Mortgage Loan Schedule,  minus the sum
of (i) the principal  portion of each Monthly  Payment due on a Due Date subsequent to the Cut-off Date to the extent received from the
Mortgagor  or advanced by the  Servicer and paid  pursuant to Section  3.05 of the  Indenture on or before such date of  determination,
(ii) all  Principal  Prepayments  received  after the Cut-off Date to the extent paid  pursuant to Section 3.05 of the  Indenture on or
before such date of determination,  (iii) all Liquidation  Proceeds and Insurance  Proceeds to the extent paid pursuant to Section 3.05
of the Indenture on or before such date of  determination,  and (iv) any Realized  Loss incurred with respect  thereto as a result of a
Deficient  Valuation made during or prior to the Due Period for the most recent Payment Date  coinciding with or preceding such date of
determination;  and (b) as of any date of  determination  coinciding  with or subsequent to the Payment Date on which the proceeds,  if
any, of a Liquidation  Event with respect to such Mortgage Loan would be paid,  zero.  With respect to any REO Property:  (a) as of any
date of  determination up to but not including the Payment Date on which the proceeds,  if any, of a Liquidation  Event with respect to
such REO Property would be paid, an amount (not less than zero) equal to the Stated  Principal  Balance of the related Mortgage Loan as
of the date on which such REO Property was acquired on behalf of the Trust,  minus the aggregate  amount of REO Principal  Amortization
in respect of such REO  Property  for all  previously  ended  calendar  months,  to the extent  paid  pursuant  to Section  3.05 of the
Indenture  on or before such date of  determination;  and (b) as of any date of  determination  coinciding  with or  subsequent  to the
Payment Date on which the proceeds, if any, of a Liquidation Event with respect to such REO Property would be paid, zero.

                   "Statutory  Trust  Statute":  Chapter 38 of Title 12 of the Delaware  Code, 12 Del. Code §§3801 et seq., as the same
may be amended from time to time.

                  "Stepdown  Date":  The earlier to occur of (i) the Payment  Date on which the  aggregate  Note Balance of the Class A
Notes has been  reduced to zero and (ii) the later to occur of (a) the Payment Date  occurring  in July 2010 and (b) the first  Payment
Date on which the Senior  Credit  Enhancement  Percentage  (calculated  for this purpose  only after  taking into  account  payments of
principal on the Mortgage  Loans but prior to any payment of the Principal  Distribution  Amount on the Notes then entitled to payments
of principal on such Payment Date) is equal to or greater than 53.00%.

                  "Subordinate  Note":  Any Class M-1 Note,  Class M-2 Note,  Class M-3 Note, Class M-4 Note, Class M-5 Note, Class M-6
Note, Class M-7-A Note, Class M-7-B, Class M-8-A Note, Class M-8-B, Class M-9 Note or Class M-10 Note.

                   "Sub-Servicer":  Any Person with which the Servicer has entered into a  Sub-Servicing  Agreement and which meets the
qualifications of a Sub-Servicer pursuant to Section 3.02 of the Sale and Servicing Agreement.

                  "Sub-Servicing  Account":  An account established by a Sub-Servicer which meets the requirements set forth in Section
3.08 of the Sale and Servicing Agreement and is otherwise acceptable to the Servicer.

                  "Sub-Servicing  Agreement":  The written contract  between the Servicer and a Sub-Servicer  relating to servicing and
administration of certain Mortgage Loans as provided in Section 3.02 of the Sale and Servicing Agreement.

                  "Subsequent  Recoveries":  As of any Payment Date, unanticipated amounts received by the Servicer (net of any related
expenses permitted to be reimbursed pursuant to Section 3.11 of the Sale and Servicing  Agreement)  specifically  related to a Mortgage
Loan that was the subject of a liquidation or an REO  Disposition  prior to the related  Prepayment  Period that resulted in a Realized
Loss.

                  "Substitution Adjustment": As defined in Section 2.03(c) of the Sale and Servicing Agreement.

                  "Successor Servicer": As defined in Section 6.02 of the Sale and Servicing Agreement.

                  "Successor Master Servicer": As defined in Section 6.06 of the Sale and Servicing Agreement.

                   "Swap Account":  The account or accounts  created and maintained  pursuant to Section 4.03 of the Sale and Servicing
Agreement.  The Swap Account must be an Eligible Account.

                  "Swap Credit Support Annex":  The credit support annex,  dated as of July 12, 2007, between the Swap Provider and the
Trust, which is annexed to and forms part of the Interest Rate Swap Agreement.

                  "Swap  Expense Fee Rate":  With respect to each Payment  Date, a per annum rate,  equal to the product of (x) the sum
of (i) any Net Swap Payment owed to the Swap  Provider  for that  Payment Date and (ii) any Swap  Termination  Payment for that Payment
Date (other than any Swap Termination  Payment  resulting from a Swap Provider  Trigger Event) payable by the Securities  Administrator
on behalf of the trust, and (y) 12 divided by the aggregate  Stated Principal  Balance of the Mortgage Loans as of the first day of the
related Due  Period,  adjusted to reflect  unscheduled  payments of  principal  received  thereon  after such date and  included in the
Principal Distribution Amount on the immediately preceding Payment Date.

                  "Swap LIBOR":  A per annum rate equal to the floating rate payable by the Swap Provider  under the Interest Rate Swap
Agreement.

                  "Swap  Provider":  The swap provider under the Interest Rate Swap  Agreement.  Initially,  the Swap Provider shall be
Bear Stearns Financial Products Inc.

                  "Swap Provider Trigger Event":  A Swap Termination  Payment that is triggered upon: (i) an Event of Default under the
Interest  Rate Swap  Agreement  with  respect to which the Swap  Provider is a Defaulting  Party (as defined in the Interest  Rate Swap
Agreement),  (ii) a Termination  Event (as defined in the Interest Rate Swap  Agreement) with respect to which the Swap Provider is the
sole Affected  Party (as defined in the Interest  Rate Swap  Agreement)  or (iii) an  Additional  Termination  Event (as defined in the
Interest Rate Swap Agreement) with respect to which the Swap Provider is the sole Affected Party.

                  "Swap  Termination  Payment":  The payment due to either party under the Interest Rate Swap  Agreement upon the early
termination of the Interest Rate Swap Agreement.

                  "Trigger  Event":  A Trigger  Event is in  effect  with  respect  to any  Payment  Date if a  Delinquency  Event or a
Cumulative Loss Trigger Event exists.

                  "Trust": The Newcastle Mortgage Securities Trust 2007-1 to be created pursuant to the Trust Agreement.

                  "Trust Agreement":  The Trust Agreement,  dated July 11, 2007, among the Owner Trustee, the Sponsor and the Depositor
together  with the Amended and Restated  Trust  Agreement  dated as of July 12, 2007,  among the Owner  Trustee,  the Depositor and the
Securities Administrator, relating to the Trust.

                  "Trust Estate": The meaning specified in the Granting Clause of the Indenture.

                  "Trust  Indenture Act" or "TIA":  The Trust  Indenture Act of 1939, as amended from time to time, as in effect on any
relevant date.

                  "UCC": The Uniform Commercial Code, as amended from time to time, as in effect in any specified jurisdiction.

                  "Underwriter": Bear Stearns & Co. Inc., or its successors.

                  "Uninsured Cause":  Any cause of damage to a Mortgaged  Property such that the complete  restoration of such property
is not fully  reimbursable  by the hazard  insurance  policies  required  to be  maintained  pursuant  to Section  3.14 of the Sale and
Servicing Agreement.

                  "Value":  With respect to any Mortgaged  Property,  the lesser of (i) the value thereof as determined by an appraisal
made for the originator of the Mortgage Loan at the time of origination of the Mortgage Loan by a qualified  appraiser,  duly appointed
by the Originator,  who had no interest,  direct or indirect in the Mortgaged Property or in any loan made on the security thereof, and
whose  compensation is not affected by the approval or disapproval of the Mortgage Loan, and the appraisal and appraiser both satisfied
the  requirements  of the  Financial  Institutions  Reform,  Recovery,  and  Enforcement  Act of 1989 and the  regulations  promulgated
thereunder,  all as in effect on the date the Mortgage Loan was originated,  and (ii) the purchase price paid for the related Mortgaged
Property by the Mortgagor with the proceeds of the Mortgage Loan,  provided,  however,  in the case of a Refinanced Mortgage Loan, such
value of the Mortgaged  Property is based solely upon the value  determined by an appraisal made for the originator of such  Refinanced
Mortgage Loan at the time of origination of such refinanced Mortgage Loan by an appraiser a qualified appraiser,  duly appointed by the
Originator,  who had no interest,  direct or indirect in the Mortgaged Property or in any loan made on the security thereof,  and whose
compensation  is not affected by the approval or  disapproval  of the Mortgage Loan, and the appraisal and appraiser both satisfied the
requirements of the Financial Institutions Reform,  Recovery, and Enforcement Act of 1989 and the regulations  promulgated  thereunder.______________________________________________________________________________________________________________________

                               BEAR STEARNS ASSET-BACKED SECURITIES I LLC,
                                               as Depositor

                                         NATIONSTAR MORTGAGE LLC,
                                               as Servicer

                               NEWCASTLE MORTGAGE SECURITIES TRUST 2007-1,
                                            as Issuing Entity

                                          WELLS FARGO BANK, N.A.
                        as Master Servicer, Securities Administrator and Custodian
                                                   and

                                           THE BANKOF NEW YORK,
                                           as Indenture Trustee

                                      _______________________________

                                       SALE AND SERVICING AGREEMENT

                                        Dated as of July 12, 2007

                                      _______________________________

                                              Mortgage Loans

                                Newcastle Mortgage Securities Trust 2007-1

______________________________________________________________________________________________________________________

                                            TABLE OF CONTENTS

                                                                                                               Page

                                                ARTICLE I

                                               DEFINITIONS

   Section 1.01.      Definitions.................................................................................2
   Section 1.02.      Other Definitional Provisions...............................................................2
   Section 1.03.      Interest Calculations.......................................................................2

                                                ARTICLE II

                                      REPRESENTATIONS AND WARRANTIES

   Section 2.01.      Conveyance of Mortgage Loans................................................................4
   Section 2.02.      Acceptance by Indenture Trustee.............................................................7
   Section 2.03.      Repurchase or Substitution of Mortgage Loans by the Originator..............................8
   Section 2.04.      Representations and Warranties Regarding the Master Servicer...............................11
   Section 2.05.      Representations, Warranties and Covenants of the Servicer..................................12
   Section 2.06.      Existence..................................................................................14

                                               ARTICLE III

                              ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

   Section 3.01.      Servicer to Act as Servicer................................................................15
   Section 3.02.      Sub-Servicing Agreements Between Servicer and Sub-Servicers................................17
   Section 3.03.      Successor Sub-Servicers....................................................................18
   Section 3.04.      Liability of the Servicer..................................................................18
   Section 3.05.      No Contractual  Relationship Between  Sub-Servicers,  the Indenture Trustee
                      or the Noteholders.........................................................................18
   Section 3.06.      Assumption  or  Termination  of  Sub-Servicing  Agreements by the Indenture
                      Trustee....................................................................................19
   Section 3.07.      Collection of Certain Mortgage Loan Payments...............................................19
   Section 3.08.      Sub-Servicing Accounts.....................................................................20
   Section 3.09.      Collection of Taxes, Assessments and Similar Items; Servicing Accounts.....................20
   Section 3.10.      Collection Account and Note Account........................................................21
   Section 3.11.      Withdrawals from the Collection Account and Note Account...................................23
   Section 3.12.      Investment of Funds in the Collection Account and the Note Account.........................25
   Section 3.13.      [Reserved].................................................................................26
   Section 3.14.      Maintenance  of Hazard  Insurance  and Errors and  Omissions  and  Fidelity
                      Coverage...................................................................................26
   Section 3.15.      Enforcement of Due-On-Sale Clauses; Assumption Agreements..................................28
   Section 3.16.      Realization Upon Defaulted Mortgage Loans..................................................29
   Section 3.17.      Custodian and Indenture Trustee to Cooperate; Release of Mortgage Files....................30
   Section 3.18.      Servicing Compensation.....................................................................32
   Section 3.19.      Reports to the  Securities  Administrator  and Others;  Collection  Account
                      Statements.................................................................................32
   Section 3.20.      Statement as to Compliance.................................................................32
   Section 3.21.      Assessments of Compliance and Attestation Reports..........................................33
   Section 3.22.      Access to Certain Documentation; Filing of Reports by Indenture Trustee....................36
   Section 3.23.      Title, Management and Disposition of REO Property..........................................36
   Section 3.24.      Obligations of the Servicer in Respect of Prepayment Interest Shortfalls...................38
   Section 3.25.      [Reserved].................................................................................39
   Section 3.26.      Obligations  of the  Servicer  in Respect  of  Mortgage  Rates and  Monthly
                      Payments...................................................................................39
   Section 3.27.      [Reserved].................................................................................39
   Section 3.28.      [Reserved].................................................................................39
   Section 3.29.      Advance Facility...........................................................................39
   Section 3.30.      Master Servicer............................................................................41
   Section 3.31.      Monitoring of Servicer.....................................................................42
   Section 3.32.      Fidelity Bond..............................................................................43
   Section 3.33.      Power to Act; Procedures...................................................................43
   Section 3.34.      Due-on-Sale Clauses; Assumption Agreements.................................................44
   Section 3.35.      Documents,  Records and Funds in Possession  of Master  Servicer To Be Held
                      for Trustee................................................................................44
   Section 3.36.      Possession of Certain Insurance Policies and Documents.....................................45
   Section 3.37.      Compensation for the Master Servicer.......................................................45
   Section 3.38.      Obligation  of the  Master  Servicer  in  Respect  of  Prepayment  Interest
                      Shortfalls.................................................................................45
   Section 3.39.      Merger or Consolidation....................................................................45
   Section 3.40.      Resignation of Master Servicer.............................................................46
   Section 3.41.      Assignment or Delegation of Duties by the Master Servicer..................................46

                                                ARTICLE IV

                           REMITTANCE REPORTS; ADVANCES; EXCHANGE ACT REPORTING

   Section 4.01.      Remittance Reports and Advances............................................................48
   Section 4.02.      Exchange Act Reporting.....................................................................49
   Section 4.03.      Swap Account...............................................................................60
   Section 4.04.      Cap Account................................................................................60

                                                ARTICLE V

                                      THE SERVICER AND THE DEPOSITOR

   Section 5.01.      Liability of the Servicer, Master Servicer and the Depositor...............................62
   Section 5.02.      Merger or  Consolidation  of, or  Assumption  of the  Obligations  of,  the
                      Servicer or the Depositor..................................................................62
   Section 5.03.      Limitation on Liability of the Servicer, Master Servicer and Others........................62
   Section 5.04.      Servicer Not to Resign.....................................................................63
   Section 5.05.      Delegation of Duties.......................................................................63
   Section 5.06.      Indemnification............................................................................64
   Section 5.07.      Inspection.................................................................................64

                                                ARTICLE VI

                                                 DEFAULT

   Section 6.01.      Servicer Events of Termination.............................................................65
   Section 6.02.      Master Servicer to Act; Appointment of Successor...........................................66
   Section 6.03.      Waiver of Defaults.........................................................................68
   Section 6.04.      Notification to Noteholders................................................................68
   Section 6.05.      Survivability of Liabilities...............................................................69
   Section 6.06.      Master Servicer Events of Termination......................................................69
   Section 6.07.      Appointment of Successor Master Servicer...................................................71

                                               ARTICLE VII

                                         MISCELLANEOUS PROVISIONS

   Section 7.01.      Amendment..................................................................................74
   Section 7.02.      GOVERNING LAW..............................................................................74
   Section 7.03.      Notices....................................................................................74
   Section 7.04.      Severability of Provisions.................................................................76
   Section 7.05.      Third-Party Beneficiaries..................................................................76
   Section 7.06.      Counterparts...............................................................................77
   Section 7.07.      Effect of Headings and Table of Contents...................................................77
   Section 7.08.      Termination................................................................................77
   Section 7.09.      No Petition................................................................................77
   Section 7.10.      No Recourse................................................................................77
   Section 7.11.      Indenture Trustee Rights...................................................................77
   Section 7.12.      Compliance.................................................................................77
   Section 7.13.      Intention of the Parties and Interpretation................................................77

                                               ARTICLE VIII

                                       DUTIES OF THE ADMINISTRATOR

   Section 8.01.      Administrative Duties......................................................................79
   Section 8.02.      Records....................................................................................80
   Section 8.03.      Additional Information to be Furnished.....................................................80
   Section 8.04.      No Recourse to Owner Trustee...............................................................81

EXHIBITS

Exhibit A         Form of Assignment Agreement
Exhibit B         Mortgage Loan Schedule
Exhibit C         Form of Request for Release
Exhibit D-1       Form of Custodian's Initial Certification
Exhibit D-2       Form of Custodian's Final Certification
Exhibit E         Form of Lost Note Affidavit
Exhibit F         Form of Power of Attorney
Exhibit G-1       Form of Certification to Be Provided by the Servicer with Form 10-K
Exhibit G-2       Form of Certification to Be Provided to the Servicer by the Securities Administrator
Exhibit H         Servicing Criteria
Exhibit I         Form 10-D, Form 8-K and Form 10-K Reporting Responsibility
Exhibit J         Standard File Layout-Scheduled/Scheduled
Exhibit K         Standard File Layout- Delinquency Reporting
Exhibit L         Calculation of Realized Loss/Form 332
Exhibit M         Additional Disclosure Notification

                  This Sale and Servicing  Agreement,  dated as of July 12, 2007 (the "Agreement"),  among
Bear Stearns Asset Backed  Securities I LLC., as depositor (the  "Depositor" ),  Nationstar  Mortgage LLC,
as servicer (the "Servicer"),  Newcastle Mortgage  Securities Trust 2007-1 (the "Issuing  Entity"),  Wells
Fargo bank, N.A., as master servicer and securities  administrator  (the "Master Servicer" and "Securities
Administrator") and The Bank of New York, as indenture trustee (the "Indenture Trustee").

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

                  WHEREAS,  pursuant to the terms of the Assignment Agreement,  the Depositor will acquire
the Mortgage Loans;

                  WHEREAS,  the Depositor  will create  Newcastle  Mortgage  Securities  Trust  2007-1,  a
Delaware statutory trust;

                  WHEREAS,  pursuant  to the terms of this Sale and  Servicing  Agreement,  the  Depositor
will  convey the  Mortgage  Loans and all of its rights  under the  Assignment  Agreement  to the  Issuing
Entity in exchange for the Notes and the Certificates (as defined below);

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

                  WHEREAS,  pursuant  to the terms of the  Indenture  the  Issuing  Entity will pledge the
Mortgage Loans and issue the Notes and the Certificates; and

                  WHEREAS,  pursuant to the terms of this Sale and Servicing Agreement,  the Servicer will
service the Mortgage Loans set forth on the Mortgage Loan Schedule  attached  hereto as Exhibit B directly
or through one or more Sub-Servicers;

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

                                                ARTICLE I

                                               DEFINITIONS

                  Section 1.01.     Definitions.

                  For all purposes of this Sale and  Servicing  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 which is incorporated by reference  herein.  All other  capitalized terms used herein shall have
the meanings specified herein.

                  Section 1.02.     Other Definitional Provisions.

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

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

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

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

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

                  Section 1.03.     Interest Calculations.

                  All  calculations  of  interest  hereunder  that  are  made  in  respect  of the  Stated
Principal  Balance of a Mortgage  Loan shall be made on the basis of a 360-day year  consisting  of twelve
30-day months, notwithstanding the terms of the related Mortgage Note and Mortgage.

                                                ARTICLE II

                                      REPRESENTATIONS AND WARRANTIES

                  Section 2.01.     Conveyance of Mortgage Loans.

                  The Depositor,  concurrently  with the execution and delivery hereof,  does hereby sell,
transfer,  assign,  set over and otherwise  convey to the Issuing  Entity as of the Closing Date,  without
recourse,  and for the benefit of the  Noteholders,  all the right,  title and interest of the  Depositor,
including  any security  interest  therein for the benefit of the  Depositor,  in and to (i) each Mortgage
Loan identified on the Mortgage Loan Schedule,  including the related Cut-off Date Principal Balance,  all
interest  accruing  thereon on and after the Cut-off Date and all  collections  in respect of interest and
principal  due after the Cut-off Date;  (ii) property  which secured each such Mortgage Loan and which has
been  acquired  by  foreclosure  or deed in lieu of  foreclosure;  (iii)  its  interest  in any  insurance
policies in respect of the Mortgage Loans;  (iv) the rights of the Depositor under the Purchase  Agreement
(as assigned to the Depositor  pursuant to the terms of the  Assignment  Agreement);  and (v) all proceeds
of any of the  foregoing.  Such  sale  includes  all  interest  and  principal  due and  collected  by the
Depositor or the Servicer  after the Cut-off Date with  respect to the Mortgage  Loans.  In  consideration
of the sale to it of such  property,  the Issuing Entity shall deliver to or at the order of the Depositor
the Notes and the Certificates.

                  In connection with such sale,  transfer,  and  assignment,  the Depositor shall instruct
the  Seller to  deliver  to and  deposit  with the  Custodian,  on behalf of the  Indenture  Trustee,  the
following documents or instruments with respect to each Original Mortgage Loan so sold,  transferred,  and
assigned, the following documents or instruments (with respect to each Mortgage Loan, a "Mortgage File"):

                           (i)      the original  Mortgage  Note,  endorsed  either (A) in blank or (B) in
         the  following  form:  "Pay to the order of The Bank of New York, as Indenture  Trustee,  without
         recourse" or with respect to any lost  Mortgage  Note, an original  Lost Note  Affidavit  stating
         that the original  mortgage note was lost,  misplaced or  destroyed,  together with a copy of the
         related mortgage note;  provided,  however,  that such  substitutions of Lost Note Affidavits for
         original  Mortgage  Notes may occur only with respect to Mortgage  Loans,  the aggregate  Cut-off
         Date  Principal  Balance  of which is less than or equal to 1.00% of the Pool  Balance  as of the
         Cut-off Date;

                           (ii)     the original  Mortgage (noting the presence of the MIN of the Mortgage
         Loan and language  indicating  that the Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM
         Loan), with evidence of recording  thereon,  and the original recorded power of attorney,  if the
         Mortgage was executed  pursuant to a power of attorney,  with  evidence of recording  thereon or,
         if such  Mortgage  or power  of  attorney  has  been  submitted  for  recording  but has not been
         returned  from  the  applicable  public  recording  office,  has  been  lost or is not  otherwise
         available,  a copy of such Mortgage or power of attorney,  as the case may be,  certified to be a
         true and complete copy of the original submitted for recording;

                           (iii)    unless  the  Mortgage  Loan is  registered  on the  MERS®  System,  an
         original  Assignment,  in form and substance  acceptable  for  recording.  The Mortgage  shall be
         assigned  either  (A) in blank or (B) to "The Bank of New York,  as  Indenture  Trustee,  without
         recourse";

                           (iv)     an  original  of any  intervening  assignment  of  Mortgage  showing a
         complete  chain of  assignments  (or to MERS if the  Mortgage  Loan is  registered  on the  MERS®
         System and noting the presence of MIN);

                           (v)      the original or a certified copy of lender's title  insurance  policy;
         and

                           (vi)     the  original  or copies  of each  assumption,  modification,  written
         assurance or substitution agreement, if any.

                  The  Depositor  herewith  also  delivers to the  Custodian,  on behalf of the  Indenture
Trustee, an executed copy of the Assignment Agreement and the Purchase Agreement.

                  If any of the documents  referred to in Section 2.01(ii),  (iii) or (iv) above has as of
the Closing Date been  submitted for  recording  but either (x) has not been returned from the  applicable
public  recording  office or (y) has been lost or such public  recording  office has retained the original
of such  document,  the  obligations  of the  Depositor to instruct  the Seller to deliver such  documents
shall be deemed to be satisfied  upon (1) delivery to the Custodian,  on behalf of the Indenture  Trustee,
no later than the Closing Date, of a copy of each such  document  certified by the  Originator in the case
of (x)  above  or the  applicable  public  recording  office  in the  case of (y)  above  to be a true and
complete  copy of the original  that was  submitted for recording and (2) if such copy is certified by the
Originator,  delivery to the Custodian, on behalf of the Indenture Trustee,  promptly upon receipt thereof
of either the original or a copy of such document  certified by the applicable  public recording office to
be a true and complete  copy of the  original.  If the original  lender's  title  insurance  policy,  or a
certified  copy  thereof,  was not  delivered  pursuant to Section  2.01(v)  above,  the  Depositor  shall
instruct  the Seller to deliver or cause to be  delivered  to the  Custodian,  on behalf of the  Indenture
Trustee,  the original or a copy of a written  commitment or interim binder or preliminary report of title
issued by the title  insurance  or escrow  company,  with the  original or a certified  copy thereof to be
delivered to the  Custodian,  on behalf of the  Indenture  Trustee,  promptly  upon receipt  thereof.  The
Servicer or the  Depositor  shall  deliver or cause to be  delivered  to the  Custodian,  on behalf of the
Indenture  Trustee,  promptly upon receipt thereof any other  documents  constituting a part of a Mortgage
File received with respect to any Mortgage  Loan,  including,  but not limited to, any original  documents
evidencing an assumption or modification of any Mortgage Loan.

                  Upon discovery or receipt of notice of any materially  defective  document in, or that a
document is missing  from, a Mortgage  File,  the  Custodian,  on behalf of the Indenture  Trustee,  shall
promptly  notify the Seller and the  Originator  of such defect or missing  document  and request that the
Originator  deliver such missing  document or cure such defect within 15 days from the date the Originator
was  notified of such  missing  document or defect,  and if the  Originator  does not deliver such missing
document or cure such defect in all material  respects  during such period,  the  Custodian,  on behalf of
the  Indenture  Trustee,  shall notify the Seller and the  Originator  of the  Originator's  obligation to
repurchase  such  Mortgage  Loan  from  the  Trust on or prior to the  Determination  Date  following  the
expiration of such 15 day period  (subject to Section  2.03(e));  provided  that,  in connection  with any
such breach that could not  reasonably  have been cured within such 15 day period,  if the  Originator has
commenced  to cure such breach  within such 15 day period,  the  Originator  shall be permitted to proceed
thereafter  diligently and  expeditiously to cure the same within any additional period provided under the
Assignment Agreement.

                  Except with respect to any Mortgage  Loan for which MERS is  identified on the Mortgage,
the Servicer  shall cause the  Assignments  with respect to any  Mortgage  Loan located in Maryland  which
were  delivered in blank to be completed  and recorded.  In the event that any such  Assignment is lost or
returned  unrecorded  because of a defect therein,  the Servicer or the Custodian via the Exception Report
shall  notify the  Originator  of its  obligations  under the  Assignment  Agreement  to  promptly  have a
substitute  Assignment  prepared or have such defect cured, as the case may be, and thereafter  cause each
such Assignment to be duly recorded.

                  For  administrative  convenience  and  facilitation  of servicing and to reduce  closing
costs,  the  Assignments  of Mortgage  shall not be required to be submitted  for  recording  (except with
respect to any Mortgage Loan located in Maryland)  unless the Servicer  receives  written notice that such
failure to record would  result in a withdrawal  or a  downgrading  by any Rating  Agency of the rating on
any Class of Notes;  provided,  however,  each  Assignment,  except with respect to any Mortgage  Loan for
which MERS is  identified  on the  Mortgage,  shall be submitted  for  recording by the  Originator in the
manner  described  above,  at no expense to the Trust,  the  Depositor,  the  Custodian or the  Securities
Administrator,  upon the  earliest  to occur of: (i)  reasonable  direction  by the  Holders of 25% of the
aggregate Note Balance of the Notes,  (ii) the occurrence of a Servicer  Event of  Termination,  (iii) the
occurrence of a bankruptcy,  insolvency or  foreclosure  relating to the Seller and (iv) the occurrence of
a servicing  transfer as  described in Section 6.02  hereof.  In addition to the  foregoing,  the Servicer
shall cause each  Assignment of Mortgage to be recorded in accordance with customary  servicing  practices
in order to convey,  upon  foreclosure,  the title of any Mortgaged  Property to the Trust as set forth in
Section  3.23  hereof.  The  cost of  recording  the  Assignments  shall be paid by the  Servicer  and the
Servicer shall be reimbursed for such expenses by the Trust.

                  In connection  with the assignment of any Mortgage Loan  registered on the MERS® System,
the Servicer further agrees that it will request that the Depositor  cause,  within 30 Business Days after
the  Closing  Date,  the MERS®  System to  indicate  that such  Mortgage  Loans have been  assigned by the
Depositor to the Indenture  Trustee in accordance  with this Sale and Servicing  Agreement for the benefit
of the  Noteholders  by including (or deleting,  in the case of Mortgage  Loans which are  repurchased  in
accordance  with this  Agreement) in such computer  files (a) the code in the field which  identifies  the
specific  Indenture  Trustee and (b) the code in the field "Pool Field" which identifies the series of the
Notes issued in connection  with such Mortgage Loans.  The Depositor  further agrees that it will not, and
the Servicer  agrees that it will not,  alter the codes  referenced in this  paragraph with respect to any
Mortgage Loan during the term of this  Agreement  unless and until such Mortgage  Loan is  repurchased  in
accordance with the terms of this Agreement.

                  The  Servicer  shall  forward  to the  Custodian,  on behalf of the  Indenture  Trustee,
original  documents  evidencing an assumption,  modification,  consolidation  or extension of any Mortgage
Loan  entered  into in  accordance  with this  Agreement  within two weeks of their  execution;  provided,
however,  that the Servicer  shall provide the Custodian  with a certified  true copy of any such document
submitted  for  recordation  within two weeks of its  execution,  and shall  provide  the  original of any
document  submitted  for  recordation  or a copy of such  document  certified  by the  appropriate  public
recording  office to be a true and complete  copy of the original  within 365 days of its  submission  for
recordation.  In the event that the  Servicer  cannot  provide a copy of such  document  certified  by the
public  recording office within such 365 day period,  the Servicer shall deliver to the Custodian,  within
such 365 day period,  an  Officers'  Certificate  of the  Servicer  which shall (A)  identify the recorded
document,  (B) state that the recorded  document has not been  delivered to the  Custodian due solely to a
delay  caused by the public  recording  office,  (C) state the amount of time  generally  required  by the
applicable  recording office to record and return a document  submitted for recordation,  if known and (D)
specify the date the  applicable  recorded  document is expected to be  delivered to the  Custodian,  and,
upon receipt of a copy of such  document  certified by the public  recording  office,  the Servicer  shall
immediately  deliver  such  document  to the  Custodian.  In the event the  appropriate  public  recording
office will not certify as to the accuracy of such  document,  the Servicer  shall  deliver a copy of such
document  certified by an officer of the  Servicer to be a true and  complete  copy of the original to the
Custodian.

                  Section 2.02.     Acceptance by Custodian on behalf of Indenture Trustee.

                  Subject to the provisions of Section 2.01 and subject to the review  described  below and
any  exceptions  noted on the  Exception  Report,  the  Custodian,  on  behalf  of the  Indenture  Trustee,
acknowledges receipt of the documents referred to in Section 2.01 above and declares that it holds and will
hold such documents and the other documents delivered to it constituting a Mortgage File, and that it holds
or will hold all such assets and such other assets  included in the  definition of "Trust  Estate" in trust
for the exclusive use and benefit of all present and future Noteholders.

                  The  Custodian,  on  behalf  of  the  Indenture  Trustee  and  for  the  benefit  of the
Noteholders,  agrees to review each  Mortgage File no later than the Closing Date (or, with respect to any
document  delivered  after the Closing  Date,  within 45 days of receipt and with respect to any Qualified
Substitute Mortgage Loan, within 45 days after the assignment  thereof).  The Custodian,  on behalf of the
Indenture  Trustee and for the benefit of the  Noteholders,  further  agrees to certify to the  Depositor,
the Indenture  Trustee and the Servicer in  substantially  the form attached hereto as Exhibit D-1, on the
Closing  Date (or,  with  respect to any  document  delivered  after the Closing  Date,  within 45 days of
receipt and with respect to any Qualified  Substitute  Mortgage Loan,  within 45 days after the assignment
thereof)  that, as to each  Mortgage  Loan listed in the Mortgage  Loan Schedule  (other than any Mortgage
Loan paid in full or any Mortgage Loan  specifically  identified in the Exception  Report annexed  thereto
as not being covered by such  certification),  (i) all  documents  required to be delivered to it pursuant
Section  2.01 (other than  Section  2.01(vi))  of this  Agreement  and if  actually  delivered  to it, the
documents  required  to be  delivered  to it pursuant to Section  2.01(vi)  of this  Agreement  are in its
possession,  (ii) such  documents  have been reviewed by it and appear regular on their face and relate to
such Mortgage Loan and (iii) based on its  examination of the foregoing  documents,  the  information  set
forth in the Mortgage Loan Schedule that corresponds to items (i), (iii),  (x), (xi),  (xii),  (xviii) and
(xxv),  (but only as to Gross Margin and Maximum  Mortgage Rate) of the Mortgage Loan Schedule  accurately
reflects  information set forth in the Mortgage File. It is herein  acknowledged  that, in conducting such
review,  the Custodian is under no duty or obligation  to inspect,  review or examine any such  documents,
instruments,  certificates  or other  papers to determine  that they are  recordable  or genuine,  legally
enforceable,  valid or binding or appropriate for the represented  purpose or that they have actually been
recorded or that they are other than what they purport to be on their face.

                  No later than the first  anniversary date of this Agreement,  or the following  Business
Day if such first  anniversary  date is not a Business Day, the Custodian  shall deliver to the Depositor,
the Indenture  Trustee and the Servicer a final  certification  in the form annexed hereto as Exhibit D-2,
with any applicable exceptions noted on the Exception Report attached thereto.

                  If in the process of reviewing the Mortgage  Files and making or  preparing,  as the case
may be, the certifications  referred to above, the Custodian finds any document or documents constituting a
part of a Mortgage File to be missing or defective in any material respect, at the conclusion of its review
the Custodian shall so notify the Indenture  Trustee,  the Originator,  the Depositor,  the Sponsor and the
Seller, such notification to be in the form of the exception report attached to its certification  following
a review of the Mortgage Files (an "Exception Report").  In addition,  upon the discovery by the Depositor,
the Master Servicer or the Servicer (or upon receipt by a Responsible  Officer of the Indenture  Trustee of
written  notification of such breach) of a breach of any of the  representations and warranties made by the
Originator in the Assignment  Agreement in respect of any Mortgage Loan which materially  adversely affects
such Mortgage Loan or the interests of the related Noteholders in such Mortgage Loan, the party discovering
such breach shall give prompt written notice to the other parties to this Agreement.

                  The Depositor  and the Issuing  Entity intend that the  assignment  and transfer  herein
contemplated  constitute  a sale of the  Mortgage  Loans,  the  related  Mortgage  Notes  and the  related
documents,  conveying good title thereto free and clear of any liens and encumbrances,  from the Depositor
to the  Issuing  Entity  for the  benefit of the  Noteholders  and that such  property  not be part of the
Depositor's  estate or property of the Depositor in the event of any insolvency by the  Depositor.  In the
event that such  conveyance  is deemed to be, or to be made as security  for, a loan,  the parties  intend
that the  Depositor  shall be deemed to have  granted and the  Depositor  does hereby grant to the Issuing
Entity a first priority  perfected  security interest in all of the Depositor's  right, title and interest
in and to the  Mortgage  Loans,  the  related  Mortgage  Notes and the  related  documents,  and that this
Agreement shall constitute a security agreement under applicable law.

                  Section 2.03.     Repurchase or Substitution of Mortgage Loans by the Originator.

                  (a) Upon discovery or receipt of written notice of any materially  defective document in,
or  that a  document  is  missing  from,  a  Mortgage  File  or of the  breach  by  the  Originator  of any
representation,  warranty or covenant  under the Purchase  Agreement in respect of any Mortgage  Loan which
materially  adversely  affects the value of such Mortgage Loan or the interest  therein of the Noteholders,
the Custodian,  on behalf of the Indenture Trustee,  shall promptly notify the Originator and the Seller of
such defect,  missing document (via the Exception Report with respect to a defect, or missing document) and
the party  discovering  the breach shall give prompt  written  notice of the breach to the other parties to
this  Agreement and the  Originator  and the  Securities  Administrator  shall request that the  Originator
deliver such missing  document or cure such defect or that the  Originator  cure such breach within 30 days
from the date the Originator was notified of such missing document, defect or breach, and if the Originator
does not deliver such missing  document or cure such defect or if the Originator  does not cure such breach
in all material  respects  during such period,  the  Securities  Administrator,  on behalf of the Indenture
Trustee shall notify the Sponsor and the  Originator  of the  Originator's  obligation  to repurchase  such
Mortgage Loan from the Trust on or prior to the Determination  Date following the expiration of such 30 day
period  (subject to Section  2.03(e));  provided  that, in  connection  with any such breach that could not
reasonably  have been cured within such 30 day period,  if the Originator has commenced to cure such breach
within  such 30 day  period,  the  Originator  shall be  permitted  to proceed  thereafter  diligently  and
expeditiously  to cure the same within any  additional  period  provided  under the  Assignment  Agreement.
Notwithstanding  the  foregoing,  to the  extent  the price  required  to be paid by the  Originator  for a
repurchased Mortgage Loan is less than the Purchase Price, the Seller, as required pursuant to the terms of
the Assignment Agreement, shall pay the difference between that amount and the Purchase Price.

                  The Purchase Price for the  repurchased  Mortgage Loan shall be remitted to the Servicer
for deposit in the  Collection  Account,  and the Custodian,  on behalf of the Indenture  Trustee and upon
receipt of  written  certification  (in the form of a Request  for  Release  hereto as Exhibit C) from the
Servicer of such deposit,  shall  release to the  Originator  the related  Mortgage File and the Indenture
Trustee  shall  execute and deliver  such  instruments  of transfer or  assignment,  in each case  without
recourse,  representation or warranty,  as the Originator shall furnish to it and as shall be necessary to
vest in the  Originator  any Mortgage Loan  released  pursuant  hereto and the  Indenture  Trustee and the
Custodian  shall have no further  responsibility  with regard to such Mortgage  File (it being  understood
that neither the Indenture  Trustee nor the Custodian  shall have any  responsibility  for determining the
sufficiency of such assignment for its intended  purpose).  In lieu of repurchasing any such Mortgage Loan
as provided  above,  the  Originator  may cause such  Mortgage Loan to be removed from the Trust (in which
case it shall become a Deleted  Mortgage Loan) and substitute  one or more Qualified  Substitute  Mortgage
Loans in the manner and subject to the limitations set forth in Section 2.03(d);  provided,  however,  the
Originator  may not  substitute  for any  Mortgage  Loan  which  breaches  a  representation  or  warranty
regarding  abusive or predatory  lending  laws.  It is  understood  and agreed that the  obligation of the
Originator  to cure or to repurchase  (or to  substitute  for) any Mortgage Loan as to which a document is
missing,  a material  defect in a  constituent  document  exists or as to which such a breach has occurred
and is  continuing  shall  constitute  the sole remedy (other than any  indemnification  obligation of the
Originator  pursuant to the Purchase  Agreement) against the Originator  respecting such omission,  defect
or breach available to the Indenture Trustee on behalf of the Noteholders.

                  In the event that the  Originator  fails to comply with any of the terms of the Purchase
Agreement,  the Indenture  Trustee,  upon notice thereof from the Securities  Administrator  or the Master
Servicer and on behalf of the  Noteholders,  shall enforce the obligations of the Originator to the extent
such failure has a materially  adverse  effect on the value of such Mortgage Loan or the interest  therein
of the Noteholders.

                  (b)      Within 90 days of the  earlier  of  discovery  by the  Servicer  or  receipt of
notice by the  Servicer of the breach of any  representation,  warranty or  covenant of the  Servicer  set
forth in Section 2.05 which  materially  and  adversely  affects the interests of the  Noteholders  in any
Mortgage  Loan,  the  Servicer  shall cure such  breach in all  material  respects.  Within 90 days of the
earlier of discovery by the Master  Servicer or receipt of notice by the Master  Servicer of the breach of
any  representation,  warranty or covenant of the Servicer set forth in Section 2.04 which  materially and
adversely  affects the interests of the  Noteholders in any Mortgage Loan, the Master  Servicer shall cure
such breach in all material respects.

                  (c)      As to any Deleted Mortgage Loan for which the Originator substitutes a Qualified
Substitute Mortgage Loan or Loans, such substitution shall be effected by the Originator  delivering to the
Custodian on behalf of the Indenture  Trustee,  for such Qualified  Substitute  Mortgage Loan or Loans, the
Mortgage  Note,  the Mortgage and the  Assignment to the Indenture  Trustee,  and such other  documents and
agreements,  with all necessary  endorsements  thereon,  as are required by Section 2.01,  together with an
Officers'  Certificate providing that each such Qualified Substitute Mortgage Loan satisfies the definition
thereof and specifying the Substitution  Adjustment (as described  below),  if any, in connection with such
substitution.  The  Custodian,  on behalf of the  Indenture  Trustee,  shall  acknowledge  receipt for such
Qualified Substitute Mortgage Loan or Loans and, within 45 days thereafter,  shall review such documents as
specified in Section 2.02 and deliver to the Depositor, the Indenture Trustee, the Seller and the Servicer,
with respect to such Qualified Substitute Mortgage Loan or Loans, a certification substantially in the form
attached hereto as Exhibit D-1, with any applicable  exceptions noted thereon.  Within one year of the date
of substitution,  the Custodian,  on behalf of the Indenture Trustee,  shall deliver to the Depositor,  the
Indenture  Trustee,  the Seller and the Servicer a certification  substantially  in the form of Exhibit D-2
hereto with respect to such Qualified  Substitute  Mortgage Loan or Loans,  with any applicable  exceptions
noted thereon.  Monthly  Payments due with respect to Qualified  Substitute  Mortgage Loans in the month of
substitution  are not  part  of the  Trust  and  will be  retained  by the  Originator.  For the  month  of
substitution,  payments to  Noteholders  will reflect the  collections  and  recoveries  in respect of such
Deleted  Mortgage  Loan in the Due Period  preceding the month of  substitution  and the  Originator  shall
thereafter  be entitled to retain all amounts  subsequently  received in respect of such  Deleted  Mortgage
Loan.  The Servicer shall give or cause to be given written  notice to the  Securities  Administrator,  who
shall  forward such notice to the  Noteholders,  that such  substitution  has taken place,  shall amend the
Mortgage  Loan  Schedule  to reflect  the  removal  of such  Deleted  Mortgage  Loan from the terms of this
Agreement and the substitution of the Qualified  Substitute Mortgage Loan or Loans and shall deliver a copy
of such amended  Mortgage Loan Schedule to the Indenture  Trustee,  the Securities  Administrator,  and the
Custodian.  Upon such substitution by the Originator such Qualified Substitute Mortgage Loan or Loans shall
constitute  part of the Mortgage  Pool and shall be subject in all respects to the terms of this  Agreement
and the Assignment Agreement,  including all applicable  representations and warranties thereof included in
the Assignment Agreement as of the date of substitution.

                  (d)      For any  month  in  which  the  Originator  substitutes  one or more  Qualified
Substitute  Mortgage Loans for one or more Deleted  Mortgage Loans, the Servicer will determine the amount
(the  "Substitution  Adjustment"),  if any,  by which the  aggregate  Purchase  Price of all such  Deleted
Mortgage Loans exceeds the aggregate,  as to each such Qualified  Substitute  Mortgage Loan, of the Stated
Principal  Balance  thereof as of the date of  substitution,  together  with one month's  interest on such
Stated  Principal  Balance  at the  applicable  Mortgage  Rate.  On the  date  of such  substitution,  the
Originator  will deliver or cause to be delivered  to the Servicer for deposit in the  Collection  Account
an amount  equal to the  Substitution  Adjustment,  if any,  and  Custodian,  on  behalf of the  Indenture
Trustee,  upon receipt of the related  Qualified  Substitute  Mortgage Loan or Loans and  certification by
the Servicer of such deposit,  shall  release (or shall cause the Custodian to release) to the  Originator
the related  Mortgage File or Files and the Indenture  Trustee shall execute and deliver such  instruments
of transfer or assignment,  in each case without recourse,  representation or warranty,  as the Originator
shall  deliver  to it and as shall be  necessary  to vest  therein  any  Deleted  Mortgage  Loan  released
pursuant hereto.

                  Section 2.04.     Representations and Warranties Regarding the Master Servicer.

                  The Master Servicer  represents and warrants to the Issuing Entity,  the Depositor,  the
Seller, the Sponsor and the Indenture Trustee for the benefit of the Noteholders, as follows:

                           (i)      The Master Servicer is a national banking  association duly organized,
         validly  existing  and in good  standing  under the laws of the United  States of America and has
         the  corporate  power to own its assets and to transact  the  business  in which it is  currently
         engaged.  The Master  Servicer is duly qualified to do business as a foreign  corporation  and is
         in good standing in each  jurisdiction  in which the  character of the business  transacted by it
         or properties  owned or leased by it requires such  qualification  and in which the failure to so
         qualify would have a material adverse effect on the business,  properties,  assets,  or condition
         (financial or other) of the Master Servicer or the validity or enforceability of this Agreement;

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

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

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

                           (v)      No  litigation  or  administrative  proceeding of or before any court,
         tribunal or governmental  body is currently  pending (other than litigation with respect to which
         pleadings or documents have been filed with a court, but not served on the Master  Servicer),  or
         to the knowledge of the Master  Servicer  threatened,  against the Master  Servicer or any of its
         properties  or with respect to this  Agreement  or the Notes or the  Certificates  which,  to the
         knowledge  of the  Master  Servicer,  has a  reasonable  likelihood  of  resulting  in a material
         adverse effect on the transactions contemplated by this Agreement.

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

                  Section 2.05.     Representations, Warranties and Covenants of the Servicer.

                  The Servicer  hereby  represents,  warrants and covenants to the Issuing  Entity and for
the benefit of the Indenture  Trustee,  as pledgee of the Mortgage Loans and the  Noteholders,  the Master
Servicer,  the Securities  Administrator  and to the Depositor,  that as of the Closing Date or as of such
date specifically provided herein:

                           (i)      The  Servicer  is  duly  organized,  validly  existing,  and  in  good
         standing under the laws of the  jurisdiction  of its formation and has all licenses  necessary to
         carry on its business as now being  conducted and is licensed,  qualified and in good standing in
         the states where the Mortgaged  Property is located (or is otherwise  exempt under applicable law
         from such  qualification)  if the laws of such state require  licensing or qualification in order
         to conduct  business of the type  conducted  by the Servicer or to ensure the  enforceability  or
         validity of each Mortgage  Loan;  the Servicer has the power and authority to execute and deliver
         this Agreement and to perform in accordance  herewith;  the execution,  delivery and  performance
         of this  Agreement  (including  all  instruments  of  transfer to be  delivered  pursuant to this
         Agreement)  and all  documents  and  instruments  contemplated  hereby  which  are  executed  and
         delivered by the Servicer  and the  consummation  of the  transactions  contemplated  hereby have
         been duly and validly authorized;  this Agreement and all documents and instruments  contemplated
         hereby which are executed and delivered by the Servicer,  assuming due  authorization,  execution
         and  delivery  by the  other  parties  hereto,  evidences  the  valid,  binding  and  enforceable
         obligation  of the  Servicer,  subject  to  applicable  bankruptcy,  insolvency,  reorganization,
         moratorium or other similar laws affecting the enforcement of creditors'  rights  generally;  and
         all  requisite  corporate  action has been taken by the Servicer to make this  Agreement  and all
         documents and  instruments  contemplated  hereby which are executed and delivered by the Servicer
         valid and binding upon the Servicer in accordance with its terms;

                           (ii)     The  consummation of the  transactions  contemplated by this Agreement
         are in the  ordinary  course of  business  of the  Servicer  and will not result in the  material
         breach of any term or provision of the  certificate  of  formation or limited  liability  company
         agreement of the Servicer or result in the breach of any term or provision  of, or conflict  with
         or  constitute  a default  under or result  in the  acceleration  of any  obligation  under,  any
         agreement,  indenture or loan or credit  agreement or other  instrument  to which the Servicer or
         its  property  is  subject,  or result in the  violation  of any law,  rule,  regulation,  order,
         judgment or decree to which the Servicer or its property is subject;

                           (iii)    The execution  and delivery of this  Agreement by the Servicer and the
         performance  and  compliance  with its  obligations  and  covenants  hereunder do not require the
         consent or approval of any  governmental  authority  or, if such consent or approval is required,
         it has been obtained;

                           (iv)     [Reserved];

                           (v)      The Servicer  does not  believe,  nor does it have any reason or cause
         to believe, that it cannot perform each and every covenant contained in this Agreement;

                           (vi)     There is no action, suit,  proceeding or investigation  pending or, to
         its knowledge,  threatened  against the Servicer that,  either  individually or in the aggregate,
         (A) may result in any change in the  business,  operations,  financial  condition,  properties or
         assets of the Servicer that might  prohibit or materially  and adversely  affect the  performance
         by  such  Servicer  of its  obligations  under,  or  the  validity  or  enforceability  of,  this
         Agreement,  or (B) may result in any material  impairment of the right or ability of the Servicer
         to carry on its business  substantially  as now  conducted,  or (C) would draw into  question the
         validity  or  enforceability  of  this  Agreement  or of  any  action  taken  or to be  taken  in
         connection with the obligations of the Servicer  contemplated  herein,  or (D) would otherwise be
         likely to impair  materially  the  ability of the  Servicer  to  perform  under the terms of this
         Agreement;

                           (vii)    Neither  this  Agreement  nor  any  information,   certificate  of  an
         officer,  statement furnished in writing or any report delivered to the Securities  Administrator
         or  Indenture  Trustee in  connection  with the  transactions  contemplated  hereby  contains any
         untrue statement of a material fact;

                           (viii)   The Servicer will not waive any Prepayment  Charge unless it is waived
         in accordance with the standard set forth in Section 3.01; and

                           (ix)     The Servicer has accurately and fully  reported,  and will continue to
         accurately  and fully  report on a monthly  basis,  its  borrower  credit  files for the Mortgage
         Loans to each of the three national credit repositories in a timely manner.

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

                  It is  understood  and agreed that the  representations,  warranties  and  covenants set
forth in this  Section 2.05 shall  survive  delivery of the Mortgage  Files to the  Indenture  Trustee and
shall inure to the benefit of the Indenture Trustee,  the Depositor,  the Master Servicer,  the Securities
Administrator,  the  Noteholders  and  the  Holders  of the  Certificates.  Upon  discovery  by any of the
Depositor,  the  Servicer,  the  Master  Servicer  or the  Indenture  Trustee  of a  breach  of any of the
foregoing  representations,  warranties and covenants which materially and adversely  affects the value of
any Mortgage Loan,  Prepayment Charge or the interests  therein of the Noteholders,  the party discovering
such breach  shall give prompt  written  notice (but in no event later than two  Business  Days  following
such discovery) to the Servicer and the Indenture Trustee.  Notwithstanding the foregoing,  within 90 days
of the earlier of  discovery  by the  Servicer  or receipt of notice by the  Servicer of the breach of the
representation  or covenant of the Servicer set forth in Section  2.05(viii)  above which  materially  and
adversely affects the interests of the Holders of the Owner Trust  Certificates in any Prepayment  Charge,
the Servicer must pay the amount of such waived Prepayment  Charge,  for the benefit of the Holders of the
Owner Trust  Certificates,  by depositing  such amount into the Collection  Account.  The foregoing  shall
not,  however,  limit any remedies  available to the  Noteholders,  the Holders of the  Certificates,  the
Depositor  or the  Indenture  Trustee  on  behalf  of the  Noteholders  and,  pursuant  to the  Assignment
Agreement respecting a breach of the representations, warranties and covenants of the Originator.

                  Section 2.06.     Existence.

                  The Issuing  Entity will keep in full effect its  existence,  rights and franchises as a
statutory  trust under the laws of the State of  Delaware  (unless it becomes,  or any  successor  Issuing
Entity  hereunder is or becomes,  organized  under the laws of any other state or of the United  States of
America,  in which case the Issuing Entity will keep in full effect its  existence,  rights and franchises
under the laws of such other  jurisdiction)  and will obtain and preserve its qualification to do business
in each  jurisdiction  in which such  qualification  is or shall be  necessary to protect the validity and
enforceability of this Agreement.

                                               ARTICLE III

                              ADMINISTRATION ANDSERVICING OF MORTGAGE LOANS

                  Section 3.01.     Servicer to Act as Servicer.

                  The Servicer  shall  service and  administer  the Mortgage  Loans on behalf of the Trust
and in the best  interests of and for the benefit of the  Noteholders  (as  determined  by the Servicer in
its  reasonable  judgment) in accordance  with the terms of this  Agreement and the Mortgage Loans and, to
the extent  consistent with such terms,  in the same manner in which it services and  administers  similar
mortgage  loans for its own  portfolio,  giving due  consideration  to  customary  and usual  standards of
practice of mortgage  lenders and loan servicers  administering  similar mortgage loans but without regard
to:

                           (i)      any relationship that the Servicer,  any Sub-Servicer or any Affiliate
         of the Servicer or any Sub-Servicer may have with the related Mortgagor;

                           (ii)     the  ownership  or  non-ownership  of any Note by the  Servicer or any
         Affiliate of the Servicer;

                           (iii)    the Servicer's obligation to make Advances or Servicing Advances; or

                           (iv)     the  Servicer's or any  Sub-Servicer's  right to receive  compensation
         for its services hereunder or with respect to any particular transaction.

                  To the extent  consistent  with the  foregoing,  the Servicer (a) shall seek to maximize
the timely and complete  recovery of principal and interest on the Mortgage  Notes and (b) shall waive (or
permit a  Sub-Servicer  to waive) a Prepayment  Charge only under the  following  circumstances:  (i) such
waiver is standard and  customary in  servicing  similar  Mortgage  Loans,  (ii) such waiver  relates to a
default or a  reasonably  foreseeable  default and would,  in the  reasonable  judgment  of the  Servicer,
maximize  recovery of total  proceeds  taking into  account  the value of such  Prepayment  Charge and the
related  Mortgage  Loan,  (iii)  the  collection  of such  Prepayment  Charge  would  be in  violation  of
applicable  laws or (iv)  such  waiver  is in  accordance  with the  Servicer's  internal  policies.  If a
Prepayment  Charge is waived as permitted by meeting the  standard  described in clause (iii) above,  then
the Servicer shall make commercially  reasonable  efforts to enforce the Indenture  Trustee's rights under
the  Purchase  Agreement  including  the  obligation  of the  Originator  to pay the amount of such waived
Prepayment  Charge to the  Servicer for deposit in the  Collection  Account for the benefit of the Holders
of the Owner Trust  Certificates.  If the Servicer  makes a good faith  determination,  as evidenced by an
Officer's  Certificate  delivered by the Servicer to the Indenture  Trustee and the Master Servicer,  that
the  Servicer's  efforts are not reasonably  expected to be successful in enforcing such rights,  it shall
notify the  Indenture  Trustee and the Master  Servicer of such  failure,  and the Master  Servicer  shall
notify the  Originator of its  obligation  under the Purchase  Agreement to pay to the Servicer the amount
of such waived  Prepayment  Charge.  If a Prepayment Charge is waived as permitted by meeting the standard
described  in clause (iv) above,  then the  Servicer  shall  deposit the amount of such waived  Prepayment
Charge in the Collection Account for the benefit of the Holders of the Owner Trust Certificates.

                  Subject  only  to  the  above-described  servicing  standards  and  the  terms  of  this
Agreement and of the Mortgage  Loans,  the Servicer shall have full power and  authority,  acting alone or
through  Sub-Servicers  as  provided  in  Section  3.02,  to do or cause to be done any and all  things in
connection  with such  servicing and  administration  which it may deem  necessary or  desirable.  Without
limiting the generality of the foregoing,  the Servicer,  in the name of the Trust,  is hereby  authorized
and empowered by the Indenture  Trustee when the Servicer  believes it appropriate in its best judgment in
accordance  with the  Servicing  Standard,  to execute and  deliver,  on behalf of the Trust,  the Issuing
Entity,  the  Noteholders  and  the  Indenture  Trustee,  any  and  all  instruments  of  satisfaction  or
cancellation,  or of partial or full release or  discharge,  and all other  comparable  instruments,  with
respect to the Mortgage  Loans and the Mortgaged  Properties and to institute  foreclosure  proceedings or
obtain a deed-in-lieu  of foreclosure  so as to convert the ownership of such  properties,  and to hold or
cause to be held title to such properties,  on behalf of the Indenture  Trustee and the  Noteholders.  The
Servicer shall service and administer the Mortgage Loans in accordance with  applicable  state and federal
law and shall  provide to the  Mortgagors  any  reports  required  to be  provided  to them  thereby.  The
Servicer  shall  also  comply  in the  performance  of  this  Agreement  with  all  reasonable  rules  and
requirements  of each  insurer  under any  standard  hazard  insurance  policy.  Subject to Section  3.17,
within  five (5) days of the  Closing  Date,  the  Indenture  Trustee  shall  execute  and  furnish to the
Servicer  and any  Sub-Servicer  any limited  powers of attorney in the form of Exhibit F hereto and other
documents  necessary  or  appropriate  to  enable  the  Servicer  or any  Sub-Servicer  to carry out their
servicing  and  administrative  duties  hereunder;  provided,  such  limited  powers of  attorney or other
documents  shall be prepared by the Servicer and submitted to the  Indenture  Trustee for  execution.  The
Indenture  Trustee  shall not be liable for the actions by the  Servicer or any  Sub-Servicers  under such
powers of attorney  and shall be  indemnified  by the  Servicer  (from its own funds  without any right of
reimbursement  from the  Collection  Account),  for any costs,  liabilities  or  expenses  incurred by the
Indenture Trustee in connection with the use or misuse of such powers of attorney.

                  The Servicer  further is hereby  authorized and empowered,  on behalf of the Noteholders
and the Indenture  Trustee,  in its own name or in the name of the Sub-Servicer,  when the Servicer or the
Sub-Servicer,  as the case may be,  believes  it is  appropriate  in its best  judgment  to  register  any
Mortgage  Loan on the MERS®  System,  or cause the removal from the  registration  of any Mortgage Loan on
the MERS® System,  to execute and deliver,  on behalf of the Indenture  Trustee and the Noteholders or any
of them,  any and all  instruments  of assignment and other  comparable  instruments  with respect to such
assignment  or  re-recording  of a  Mortgage  in the name of MERS,  solely as  nominee  for the  Indenture
Trustee and its successors and assigns.  Any reasonable  expenses  incurred in connection with the actions
described in the preceding  sentence or as a result of MERS  discontinuing  or becoming unable to continue
operations in connection  with the MERS® System,  shall be reimbursable to the Servicer by withdrawal from
the Collection Account pursuant to Section 3.11.

                  Subject to Section 3.09  hereof,  in  accordance  with the  standards  of the  preceding
paragraph,  the Servicer,  on escrowed accounts,  shall advance or cause to be advanced funds as necessary
for the purpose of effecting  the payment of taxes and  assessments  on the  Mortgaged  Properties,  which
advances shall be Servicing  Advances  reimbursable  in the first instance from related  collections  from
the  Mortgagors  pursuant to Section 3.09,  and further as provided in Section 3.11.  Any cost incurred by
the  Servicer  or by  Sub-Servicers  in  effecting  the  payment of taxes and  assessments  on a Mortgaged
Property  shall not,  for the  purpose of  calculating  payments  to  Noteholders,  be added to the unpaid
Stated  Principal  Balance of the related Mortgage Loan,  notwithstanding  that the terms of such Mortgage
Loan so permit.

                  Notwithstanding  anything in this  Agreement to the contrary,  the Servicer may not make
any future  advances  with  respect to a  Mortgage  Loan  (except  as  provided  in Section  4.01) and the
Servicer  shall not permit  any  modification  with  respect to any  Mortgage  Loan that would  change the
Mortgage Rate,  reduce or increase the Stated  Principal  Balance  (except for  reductions  resulting from
actual  payments of principal) or change the final  maturity date on such Mortgage Loan,  (unless,  in any
such case, as provided in Section  3.07,  the Mortgagor is in default with respect to the Mortgage Loan or
such  default  is,  in  the  judgment  of  the  Servicer,   reasonably   foreseeable).   In  addition  and
notwithstanding  anything in this  Agreement  to the  contrary,  neither the  Servicer  nor the  Indenture
Trustee  shall,  under any  circumstance,  be permitted to sell any Mortgage Loan (other than with respect
to the exercise of an optional  redemption  pursuant to Section 8.07 of the Indenture or the repurchase of
a Mortgage Loan pursuant to Section 2.03).

                  Section 3.02.     Sub-Servicing Agreements Between Servicer and Sub-Servicers.

                  (a)      The Servicer may enter into Sub-Servicing Agreements with Sub-Servicers,  which
may be Affiliates of the Servicer,  for the servicing and administration of the Mortgage Loans;  provided,
however,  such  sub-servicing  arrangement  and the  terms of the  related  Sub-Servicing  Agreement  must
provide for the servicing of the Mortgage  Loans in a manner  consistent  with the  servicing  arrangement
contemplated  hereunder  and in  accordance  with the Servicing  Standard.  The Master  Servicer is hereby
authorized  to  acknowledge,  at the  request  of the  Servicer,  any  Sub-Servicing  Agreement.  No  such
acknowledgment  shall be deemed to imply that the Master Servicer has consented to any such  Sub-Servicing
Agreement,  has passed upon whether such  Sub-Servicing  Agreement  meets the  requirements  applicable to
Sub-Servicing  Agreements  set forth in this  Agreement  or has passed  upon  whether  such  Sub-Servicing
Agreement is otherwise permitted under this Agreement.

                  Each  Sub-Servicer  shall be (i) authorized to transact  business in the state or states
where the related  Mortgaged  Properties it is to service are situated,  if and to the extent  required by
applicable  law  to  enable  the  Sub-Servicer  to  perform  its  obligations   hereunder  and  under  the
Sub-Servicing  Agreement  and  (ii)  a  Freddie  Mac  or  Fannie  Mae  approved  mortgage  servicer.  Each
Sub-Servicing  Agreement  must impose on the  Sub-Servicer  requirements  conforming to the provisions set
forth in Section 3.08 and provide for servicing of the Mortgage  Loans  consistent  with the terms of this
Agreement.  The Servicer  will examine each  Sub-Servicing  Agreement  and will be familiar with the terms
thereof.  The terms of any Sub-Servicing  Agreement will not be inconsistent with any of the provisions of
this  Agreement.  Any variation in any  Sub-Servicing  Agreements from the provisions set forth in Section
3.08 relating to insurance or priority  requirements of Sub-Servicing  Accounts, or credits and charges to
the  Sub-Servicing  Accounts or the timing and amount of remittances by the Sub-Servicers to the Servicer,
are  conclusively  deemed to be inconsistent  with this Agreement and therefore  prohibited.  The Servicer
shall  deliver to the Master  Servicer  copies of all  Sub-Servicing  Agreements,  and any  amendments  or
modifications thereof, promptly upon the Servicer's execution and delivery of such instruments.

                  (b)      As part of its servicing activities  hereunder,  the Servicer,  for the benefit
of the Indenture  Trustee and the Noteholders,  shall enforce the obligations of each  Sub-Servicer  under
the related Sub-Servicing  Agreement,  including,  without limitation,  any obligation to make advances in
respect of delinquent  payments as required by a Sub-Servicing  Agreement.  Such  enforcement,  including,
without  limitation,  the legal prosecution of claims,  termination of Sub-Servicing  Agreements,  and the
pursuit of other  appropriate  remedies,  shall be in such form and  carried  out to such an extent and at
such time as the Servicer,  in its good faith  business  judgment,  would require were it the owner of the
related  Mortgage  Loans.  The Servicer shall pay the costs of such  enforcement  at its own expense,  and
shall be reimbursed  therefor only (i) from a general  recovery  resulting from such  enforcement,  to the
extent,  if any, that such recovery  exceeds all amounts due in respect of the related  Mortgage Loans, or
(ii) from a specific  recovery of costs,  expenses or attorneys'  fees against the party against whom such
enforcement is directed.

                  Section 3.03.     Successor Sub-Servicers.

                  The Servicer shall be entitled to terminate any  Sub-Servicing  Agreement and the rights
and obligations of any Sub-Servicer  pursuant to any Sub-Servicing  Agreement in accordance with the terms
and conditions of such  Sub-Servicing  Agreement.  In the event of termination  of any  Sub-Servicer,  all
servicing  obligations of such  Sub-Servicer  shall be assumed  simultaneously by the Servicer without any
act or deed on the part of such  Sub-Servicer  or the  Servicer,  and the Servicer  either  shall  service
directly  the  related  Mortgage  Loans or shall  enter into a  Sub-Servicing  Agreement  with a successor
Sub-Servicer which qualifies under Section 3.02.

                  Any  Sub-Servicing  Agreement  shall  include the provision  that such  agreement may be
immediately  terminated by the Servicer or the  Successor  Servicer  without fee, in  accordance  with the
terms of this Agreement.

                  Section 3.04.     Liability of the Servicer.

                  Notwithstanding  any  Sub-Servicing  Agreement  or  the  provisions  of  this  Agreement
relating to agreements or  arrangements  between the Servicer and a  Sub-Servicer  or reference to actions
taken through a Sub-Servicer  or otherwise,  the Servicer shall remain  obligated and primarily  liable to
the Indenture  Trustee and the  Noteholders for the servicing and  administering  of the Mortgage Loans in
accordance  with the  provisions  of Section 3.01 without  diminution  of such  obligation or liability by
virtue  of such  Sub-Servicing  Agreements  or  arrangements  or by  virtue  of  indemnification  from the
Sub-Servicer  and to the same  extent and under the same terms and  conditions  as if the  Servicer  alone
were  servicing and  administering  the Mortgage  Loans.  The Servicer shall be entitled to enter into any
agreement  with a  Sub-Servicer  for  indemnification  of the  Servicer by such  Sub-Servicer  and nothing
contained in this Agreement shall be deemed to limit or modify such indemnification.

                  Section 3.05.     No  Contractual  Relationship  Between  Sub-Servicers,  the Indenture
                                    Trustee or the Noteholders.

                  Any  Sub-Servicing  Agreement that may be entered into and any  transactions or services
relating to the  Mortgage  Loans  involving a  Sub-Servicer  in its capacity as such shall be deemed to be
between the  Sub-Servicer  and the Servicer alone,  and the Indenture  Trustee,the  Master  Servicer,  the
Securities  Administrator  or Noteholders  shall not be deemed  parties  thereto and shall have no claims,
rights,  obligations,  duties or  liabilities  with  respect  to the  Sub-Servicer  except as set forth in
Section  3.06.  The  Servicer  shall  be  solely  liable  for all  fees  owed  by it to any  Sub-Servicer,
irrespective of whether the Servicer's  compensation  pursuant to this Agreement is sufficient to pay such
fees.

                  Section 3.06.     Assumption  or  Termination  of  Sub-Servicing   Agreements  by  the
                                    Successor Servicer.

                  In the event the Servicer  shall for any reason no longer be the servicer  (including by
reason of the  occurrence of a Servicer Event of  Termination),  the Successor  Servicer  shall  thereupon
assume all of the rights and  obligations  of the Servicer  under each  Sub-Servicing  Agreement  that the
Servicer may have entered  into,  unless the  Successor  Servicer  elects to terminate  any  Sub-Servicing
Agreement in accordance  with its terms as provided in Section 3.03. Upon such  assumption,  the Successor
Servicer  shall be deemed,  subject to Section  3.03,  to have  assumed  all of the  departing  Servicer's
interest therein and to have replaced the departing  Servicer as a party to each  Sub-Servicing  Agreement
to the same extent as if each  Sub-Servicing  Agreement  had been assigned to the assuming  party,  except
that (i) the departing  Servicer shall not thereby be relieved of any liability or  obligations  under any
Sub-Servicing  Agreement  that arose before it ceased to be the Servicer and (ii) the  Successor  Servicer
shall not be deemed to have assumed any  liability  or  obligation  of the  Servicer  that arose before it
ceased to be the Servicer.

                  The Servicer at its expense shall,  upon request of the Successor  Servicer,  deliver to
the assuming  party all documents and records  relating to each  Sub-Servicing  Agreement and the Mortgage
Loans then being  serviced  and an  accounting  of amounts  collected  and held by or on behalf of it, and
otherwise  use its best  efforts  to effect  the  orderly  and  efficient  transfer  of the  Sub-Servicing
Agreements to the assuming party. All Servicing  Transfer Costs shall be paid by the predecessor  Servicer
upon  presentation of reasonable  documentation of such costs, and if such predecessor  Servicer  defaults
in its  obligation  to pay such costs,  such costs shall be paid by Successor  Servicer (in which case the
Successor Servicer shall be entitled to reimbursement therefor from the assets of the Trust).

                  Section 3.07.     Collection of Certain Mortgage Loan Payments.

                  The Servicer shall make reasonable  efforts,  in accordance with the Servicing Standard,
to  collect  all  payments  called  for  under  the terms and  provisions  of the  Mortgage  Loans and the
provisions  of  any  applicable  insurance  policies  provided  to  the  Servicer.   Consistent  with  the
foregoing,  the Servicer may in its discretion  (i) waive any late payment  charge or, if applicable,  any
penalty  interest,  or any  provisions of any Mortgage Loan  requiring the related  Mortgagor to submit to
mandatory  arbitration  with respect to disputes  arising  thereunder or (ii) extend the due dates for the
Monthly  Payments  due on a Mortgage  Note for a period of not greater than 180 days;  provided,  however,
that any  extension  pursuant  to clause  (ii) above  shall not affect the  amortization  schedule  of any
Mortgage Loan for purposes of any  computation  hereunder,  except as provided  below. In the event of any
such  arrangement  pursuant to clause (ii) above, the Servicer shall make timely Advances on such Mortgage
Loan during such extension  pursuant to Section 4.01 and in accordance with the  amortization  schedule of
such  Mortgage  Loan  without  modification  thereof by reason of such  arrangement.  Notwithstanding  the
foregoing,  in the event that any Mortgage  Loan is in default or, in the judgment of the  Servicer,  such
default is  reasonably  foreseeable,  the  Servicer,  consistent  with the  standards set forth in Section
3.01, may also waive,  modify or vary any term of such Mortgage Loan (including  modifications  that would
change the Mortgage  Rate,  forgive the payment of principal or interest or extend the final maturity date
of such  Mortgage  Loan),  accept  payment  from the related  Mortgagor  of an amount less than the Stated
Principal  Balance in final  satisfaction of such Mortgage Loan, or consent to the  postponement of strict
compliance  with any such term or otherwise  grant  indulgence to any Mortgagor (any and all such waivers,
modifications,   variances,   forgiveness  of  principal  or  interest,   postponements,   or  indulgences
collectively  referred to herein as  "forbearance").  The Servicer's  analysis  supporting any forbearance
and the  conclusion  that any  forbearance  meets the  standards  of Section  3.01 shall be  reflected  in
writing in the Mortgage File.

                  Section 3.08.     Sub-Servicing Accounts.

                  In those cases where a  Sub-Servicer  is  servicing a Mortgage  Loan  pursuant to a Sub-
Servicing  Agreement,  the  Sub-Servicer  will be required to establish  and maintain one or more accounts
(collectively,  the "Sub-Servicing  Account").  The Sub-Servicing Account shall be an Eligible Account and
shall  comply  with  all  requirements  of  this  Agreement  relating  to  the  Collection  Account.   The
Sub-Servicer  shall  deposit  in the  clearing  account  in which it  customarily  deposits  payments  and
collections  on mortgage  loans in  connection  with its mortgage  loan  servicing  activities  on a daily
basis, and in no event more than one Business Day after the Sub-Servicer's  receipt thereof,  all proceeds
of Mortgage Loans received by the  Sub-Servicer  less its servicing  compensation to the extent  permitted
by the Sub-Servicing  Agreement,  and shall thereafter deposit such amounts in the Sub-Servicing  Account,
in no event  more than two  Business  Days after the  receipt  of such  amounts.  The  Sub-Servicer  shall
thereafter  deposit such  proceeds in the  Collection  Account or remit such  proceeds to the Servicer for
deposit in the  Collection  Account not later than two Business  Days after the deposit of such amounts in
the Sub-Servicing  Account. For purposes of this Agreement,  the Servicer shall be deemed to have received
payments on the Mortgage Loans when the Sub-Servicer receives such payments.

                  Section 3.09.     Collection  of  Taxes,  Assessments  and  Similar  Items;  Servicing
                                    Accounts.

                  To the extent  required by the related  Mortgage Note, the Servicer shall  establish and
maintain,  or cause to be established and maintained,  one or more accounts (the "Escrow Accounts"),  into
which all Escrow  Payments shall be deposited and retained.  Escrow  Accounts shall be Eligible  Accounts.
The  Servicer  shall  deposit  in the  clearing  account in which it  customarily  deposits  payments  and
collections  on mortgage  loans in connection  with its mortgage  loan  servicing  activities,  all Escrow
Payments  collected  on account of the  Mortgage  Loans and shall  deposit in the Escrow  Accounts,  in no
event  more than two  Business  Days after the  receipt  of such  Escrow  Payments,  all  Escrow  Payments
collected on account of the Mortgage  Loans for the purpose of effecting  the payment of any such items as
required  under the terms of this  Agreement.  Withdrawals  of amounts from an Escrow  Account may be made
only to (i) effect payment of taxes,  assessments,  hazard insurance  premiums,  and comparable items in a
manner and at a time that assures  that the lien  priority of the Mortgage is not  jeopardized  (or,  with
respect  to the  payment  of  taxes,  in a manner  and at a time  that  avoids  the loss of the  Mortgaged
Property due to a tax sale or the  foreclosure  as a result of a tax lien);  (ii)  reimburse  the Servicer
(or a  Sub-Servicer  to the  extent  provided  in the  related  Sub-Servicing  Agreement)  out of  related
collections  for any  Servicing  Advances  made  pursuant  to  Section  3.01  (with  respect  to taxes and
assessments) and Section 3.14 (with respect to hazard  insurance);  (iii) refund to Mortgagors any sums as
may be determined to be overages;  (iv) pay interest,  if required and as described  below,  to Mortgagors
on balances in the Escrow  Account;  or (v) clear and terminate the Escrow  Account at the  termination of
the Servicer's  obligations and  responsibilities in respect of the Mortgage Loans under this Agreement in
accordance  with  Section  8.07 of the  Indenture.  In the event the  Servicer  shall  deposit in a Escrow
Account any amount not  required to be deposited  therein,  it may at any time  withdraw  such amount from
such  Escrow  Account,  any  provision  herein  to the  contrary  notwithstanding.  The  Servicer  will be
responsible  for the  administration  of the  Escrow  Accounts  and will be  obligated  to make  Servicing
Advances  to such  accounts  when  and as  necessary  to avoid  the  lapse of  insurance  coverage  on the
Mortgaged  Property,  or which the Servicer knows, or in the exercise of the required  standard of care of
the Servicer  hereunder  should know,  is necessary to avoid the loss of the  Mortgaged  Property due to a
tax sale or the  foreclosure  as a result of a tax  lien.  If any such  payment  has not been made and the
Servicer  receives  notice of a tax lien with respect to the Mortgage  being  imposed,  the Servicer will,
within 10 Business  Days of receipt of such  notice,  advance or cause to be advanced  funds  necessary to
discharge  such lien on the  Mortgaged  Property.  As part of its  servicing  duties,  the Servicer or any
Sub-Servicers  shall  pay to the  Mortgagors  interest  on funds in the  Escrow  Accounts,  to the  extent
required by law and, to the extent that interest earned on funds in the Escrow  Accounts is  insufficient,
to pay such interest from its or their own funds,  without any  reimbursement  therefor.  The Servicer may
pay to itself any  excess  interest  on funds in the Escrow  Accounts,  to the  extent  such  action is in
conformity with the Servicing  Standard,  is permitted by law and such amounts are not required to be paid
to Mortgagors or used for any of the other purposes set forth above.

                  Section 3.10.     Collection Account and Note Account.

                  (a)      On behalf of the Trust, the Servicer shall establish and maintain,  or cause to
be  established  and  maintained,  one or more  accounts  (such  account or  accounts,  the  "Collection
Account"),  held in trust for the benefit of the Trust,  the  Indenture  Trustee and the  Noteholders.  On
behalf of the Trust,  the Servicer  shall deposit or cause to be deposited in the Collection  Account,  in
no event more than two Business  Days after the  Servicer's  receipt  thereof,  as and when received or as
otherwise required  hereunder,  the following  payments and collections  received or made by it subsequent
to the Cut-off  Date  (other than in respect of  principal  or  interest on the  Mortgage  Loans due on or
before the Cut-off  Date) or payments  (other than  Principal  Prepayments)  received by it on or prior to
the Cut-off Date but allocable to a Due Period subsequent thereto:

                           (i)      all payments on account of principal,  including Principal Prepayments
         (but not Prepayment Charges), on the Mortgage Loans;

                           (ii)     all  payments on account of  interest  (net of the  Servicing  Fee) on
         each Mortgage Loan;

                           (iii)    all Insurance Proceeds,  Liquidation  Proceeds,  Subsequent Recoveries
         and  condemnation  proceeds  (other than  proceeds  collected  in respect of any  particular  REO
         Property and amounts paid in  connection  with the  redemption  of the Notes  pursuant to Section
         8.07 of the Indenture) and Subsequent Recoveries;

                           (iv)     any amounts  required  to be  deposited  pursuant  to Section  3.12 in
         connection  with any losses realized on Permitted  Investments  with respect to funds held in the
         Collection Account;

                           (v)      any amounts  required to be deposited by the Servicer  pursuant to the
         second paragraph of Section 3.14(a) in respect of any blanket policy deductibles;

                           (vi)     all  proceeds  of  any  Mortgage  Loan  repurchased  or  purchased  in
         accordance with Section 2.03 or Section 8.07 of the Indenture;

                           (vii)    all amounts  required to be deposited in connection with  Substitution
         Adjustments pursuant to Section 2.03; and

                           (viii)   all Prepayment  Charges  collected by the Servicer in connection  with
         the Principal Prepayment of any of the Mortgage Loans.

                  The foregoing  requirements  for deposit in the  Collection  Account shall be exclusive,
it being  understood and agreed that,  without  limiting the generality of the foregoing,  payments in the
nature  of  Servicing  Fees,  late  payment  charges,   Prepayment   Interest  Excess,   assumption  fees,
insufficient  funds charges and ancillary income (other than Prepayment  Charges) need not be deposited by
the Servicer in the  Collection  Account and may be retained by the Servicer as  additional  compensation.
In the event the  Servicer  shall  deposit  in the  Collection  Account  any  amount  not  required  to be
deposited  therein,  it may at any time withdraw such amount from the  Collection  Account,  any provision
herein to the contrary notwithstanding.

                  (b)      On  behalf  of  the  Trust,  the  Servicer  shall  deliver  to  the  Securities
Administrator  in immediately  available  funds for deposit in the Note Account on or before 2:00 p.m. New
York time on the  Servicer  Remittance  Date,  that portion of the  Available  Funds  (calculated  without
regard to the  references  in the  definition  thereof  to  amounts  that may be  withdrawn  from the Note
Account)  for the  related  Payment  Date then on deposit  in the  Collection  Account,  the amount of all
Prepayment  Charges  collected during the applicable  Prepayment Period by the Servicer in connection with
the  Principal  Prepayment of any of the Mortgage  Loans then on deposit in the  Collection  Account,  the
amount of any funds  reimbursable  to an  Advancing  Person  pursuant to Section 3.29 (unless such amounts
are to be remitted in another manner as specified in the  documentation  establishing  the related Advance
Facility).

                  (c)      Funds in the  Collection  Account may be invested in Permitted  Investments  in
accordance  with the  provisions  set  forth in  Section  3.12.  The  Servicer  shall  give  notice to the
Securities  Administrator of the location of the Collection  Account maintained by it when established and
prior to any change thereof.  The Securities  Administrator shall give notice to the Servicer,  the Master
Servicer  and the Sponsor of the location of the Note  Account  when  established  and prior to any change
thereof.

                  (d)      Funds  held in the  Collection  Account  at any  time may be  delivered  by the
Servicer to the  Securities  Administrator  for deposit in an account  (which may be the Note  Account and
must  satisfy the  standards  for the Note  Account as set forth in the  definition  thereof)  and for all
purposes of this Agreement  shall be deemed to be a part of the  Collection  Account;  provided,  however,
that the  Securities  Administrator  shall have the sole  authority to withdraw any funds held pursuant to
this subsection (d).

                  The  Securities  Administrator  shall  establish  and maintain an Eligible  Account (the
"Note  Account") in which the Securities  Administrator  shall deposit,  on the same day as it is received
from the Servicer,  each remittance received by the Securities  Administrator with respect to the Mortgage
Loans.  In the event the Servicer  shall deliver to the Securities  Administrator  for deposit in the Note
Account any amount not required to be deposited  therein,  it may at any time request that the  Securities
Administrator  withdraw  such amount from the Note Account and remit to it any such amount,  any provision
herein to the contrary  notwithstanding.  In  addition,  the  Servicer,  with respect to items (i) through
(iv)  below,  shall  deliver  to the  Securities  Administrator  from  time to time for  deposit,  and the
Securities  Administrator,  with  respect to items (i) through (iv) below,  shall so deposit,  in the Note
Account:

                           (i)      any Advances, as required pursuant to Section 4.01;

                           (ii)     any amounts  required to be deposited  pursuant to Section  3.23(d) or
         (f) in connection with any REO Property;

                           (iii)    any Compensating  Interest to be deposited pursuant to Section 3.24 in
         connection with any Prepayment Interest Shortfall; and

                           (iv)     any  amounts  required  to be  paid  to the  Securities  Administrator
         pursuant to the Agreement, including, but not limited to Section 3.06 and Section 6.02.

                  Section 3.11.     Withdrawals from the Collection Account and Note Account.

                  (a)      The Servicer  shall,  from time to time, make  withdrawals  from the Collection
Account for any of the following purposes or as described in Section 4.01:

                           (i)      to remit  to the  Securities  Administrator  for  deposit  in the Note
         Account the amounts  required to be so remitted  pursuant to Section  3.10(b) or  permitted to be
         so remitted pursuant to the first sentence of Section 3.10(d);

                           (ii)     subject to Section  3.16(d),  to  reimburse  the  Servicer for (a) any
         unreimbursed  Advances to the extent of amounts  received which represent Late  Collections  (net
         of  the  related  Servicing  Fees),  Liquidation  Proceeds,  Insurance  Proceeds  and  Subsequent
         Recoveries on Mortgage Loans or REO  Properties  with respect to which such Advances were made in
         accordance  with the provisions of Section 4.01; or (b) without  limiting any right of withdrawal
         set  forth  in  clause  (vi)  below,  any  unreimbursed  Advances  that,  upon a  Final  Recovery
         Determination  with respect to such Mortgage Loan, are Nonrecoverable  Advances,  but only to the
         extent that Late  Collections  (net of the related  Servicing  Fees),  Liquidation  Proceeds  and
         Insurance  Proceeds  received with respect to such Mortgage  Loan are  insufficient  to reimburse
         the Servicer for such unreimbursed Advances;

                           (iii)    subject to Section  3.16(d),  to pay the Servicer or any  Sub-Servicer
         (a) any unpaid  Servicing  Fees,  (b) any  unreimbursed  Servicing  Advances with respect to each
         Mortgage  Loan,  but  only to the  extent  of any  Late  Collections,  Liquidation  Proceeds  and
         Insurance  Proceeds received with respect to such Mortgage Loan or REO Property,  and (c) without
         limiting any right of  withdrawal  set forth in clause (vi) below,  any  Servicing  Advances made
         with respect to a Mortgage Loan that,  upon a Final Recovery  Determination  with respect to such
         Mortgage  Loan  are  Nonrecoverable  Advances,  but only to the  extent  that  Late  Collections,
         Liquidation  Proceeds and  Insurance  Proceeds  received  with respect to such  Mortgage Loan are
         insufficient to reimburse the Servicer or any Sub-Servicer for Servicing Advances;

                           (iv)     to  pay to the  Servicer  as  additional  servicing  compensation  (in
         addition to the  Servicing  Fee) on the  Servicer  Remittance  Date any  interest  or  investment
         income earned on funds deposited in the Collection Account;

                           (v)      to pay itself or the  Originator  with respect to each  Mortgage  Loan
         that has  previously  been  purchased or replaced  pursuant to Section 2.03 all amounts  received
         thereon subsequent to the date of purchase or substitution, as the case may be;

                           (vi)     to  reimburse  the  Servicer  for any  Advance  or  Servicing  Advance
         previously  made which the Servicer has determined to be a  Nonrecoverable  Advance in accordance
         with the provisions of Section 4.01;

                           (vii)    to pay,  or to  reimburse  the  Servicer  for  Servicing  Advances  in
         respect of, expenses incurred in connection with any Mortgage Loan pursuant to Section 3.16(b);

                           (viii)   to reimburse the Servicer for expenses  incurred by or reimbursable to
         the Servicer pursuant to Section 5.03;

                           (ix)     to pay itself any Prepayment Interest Excess; and

                           (x)      to clear and terminate the Collection Account.

                  The  foregoing  requirements  for  withdrawal  from  the  Collection  Account  shall  be
exclusive.  In the event the Servicer shall deposit in the  Collection  Account any amount not required to
be deposited therein, it may at any time withdraw such amount from the Collection  Account,  any provision
herein to the contrary notwithstanding.

                  The  Servicer  shall  keep and  maintain  separate  accounting,  on a  Mortgage  Loan by
Mortgage Loan basis,  for the purpose of justifying any withdrawal  from the  Collection  Account,  to the
extent held by or on behalf of it, pursuant to subclauses  (ii),  (iii),  (iv), (v), (vi) and (vii) above.
The Servicer shall provide written notification to the Securities  Administrator,  on or prior to the next
succeeding  Servicer  Remittance Date, upon making any withdrawals from the Collection Account pursuant to
subclause (vi) above;  provided that an Officers'  Certificate in the form described under Section 4.01(d)
shall suffice for such written notification to the Securities Administrator in respect hereof.

                  (b)      The Securities  Administrator  shall,  from time to time, make withdrawals from
the Note Account, for any of the following purposes, without priority:

                           (i)      to make payments in accordance with Section 3.05 of the Indenture;

                           (ii)     to pay and reimburse  itself and the Owner Trustee amounts to which it
         or the Owner Trustee is entitled pursuant to Section 6.07 of the Indenture;

                           (iii)    to clear and  terminate  the Note Account  pursuant to Section 8.07 of
         the Indenture;

                           (iv)     to  pay  any   amounts   required   to  be  paid  to  the   Securities
         Administrator,  Master Servicer,  Custodian or the Indenture  Trustee pursuant to this Agreement,
         including but not limited to funds  required to be paid  pursuant to Section  2.01,  Section 3.06
         and Section 6.02 and Section 3.05 and Section 6.07 of the Indenture;

                           (v)      to pay to an  Advancing  Person  reimbursements  for  Advances  and/or
         Servicing Advances pursuant to Section 3.29; and

                           (vi)     to pay to the Sponsor on each Payment Date any interest or  investment
         income earned on funds deposited in the Note Account.

                  Section 3.12.     Investment of Funds in the Collection Account and the Note Account.

                  (a)      The Servicer may direct any depository  institution  maintaining the Collection
Account  and any REO  Account to invest the funds on deposit in such  accounts  and the Sponsor may direct
any depository  institution  maintaining  the Note Account to invest the funds on deposit in such accounts
(each such account,  for the purposes of this Section  3.12, an  "Investment  Account").  All  investments
pursuant to this Section 3.12 shall be in one or more Permitted  Investments  bearing  interest or sold at
a discount,  and  maturing,  unless  payable on demand,  (i) no later than the  Business  Day  immediately
preceding  the date on which such funds are  required to be withdrawn  from such account  pursuant to this
Agreement,  if a  Person  other  than the  Securities  Administrator  is the  obligor  thereon  or if such
investment is managed or advised by a Person other than the  Securities  Administrator  or an Affiliate of
the  Securities  Administrator,  and (ii) no later than the date on which such  funds are  required  to be
withdrawn from such account  pursuant to this Agreement,  if the Securities  Administrator  is the obligor
thereon or if such  investment is managed or advised by the Securities  Administrator  or any Affiliate or
if the  Securities  Administrator  or any  Affiliate of the  Securities  Administrator  is the  Custodian,
sub-custodian  or  administrator.  All  such  Permitted  Investments  shall  be held to  maturity,  unless
payable on demand.  Any  investment  of funds in an  Investment  Account  shall be made in the name of the
Indenture  Trustee (in its capacity as such),  or in the name of a nominee of the Indenture  Trustee.  The
Securities  Administrator  shall be  entitled  to sole  possession  (except  with  respect  to  investment
direction of funds held in the Collection  Account,  Note Account and any REO Account,  and any income and
gain realized thereon) over each such investment,  and any certificate or other instrument  evidencing any
such investment shall be delivered  directly to the Securities  Administrator or its agent,  together with
any document of transfer  necessary to transfer title to such  investment to the Indenture  Trustee or its
nominee.  In the  event  amounts  on  deposit  in an  Investment  Account  are at any time  invested  in a
Permitted Investment payable on demand, the Securities Administrator shall:

                  (x)      consistent  with any  notice  required  to be  given  thereunder,  demand  that
         payment  thereon  be  made on the  last  day  such  Permitted  Investment  may  otherwise  mature
         hereunder in an amount equal to the lesser of (1) all amounts  then  payable  thereunder  and (2)
         the amount required to be withdrawn on such date; and

                  (y)      demand payment of all amounts due thereunder  promptly upon  determination by a
         Responsible  Officer of the Securities  Administrator  that such Permitted  Investment  would not
         constitute a Permitted  Investment in respect of funds  thereafter  on deposit in the  Investment
         Account.

                  (b)      All income and gain  realized  from the  investment  of funds  deposited in the
Collection  Account and any REO Account held by or on behalf of the  Servicer  shall be for the benefit of
the Servicer and shall be subject to its  withdrawal in  accordance  with Section 3.11 or Section 3.23, as
applicable.  The Servicer shall deposit in the Collection Account or any REO Account,  as applicable,  the
amount of any loss of principal  incurred in respect of any such Permitted  Investment  made with funds in
such Account immediately upon realization of such loss.

                  (c)      All income and gain  realized  from the  investment  of funds  deposited in the
Note  Account  held by or on behalf of the  Sponsor  shall be for the  benefit of the Sponsor and shall be
subject to its  withdrawal in accordance  with Section 3.11. The Sponsor shall deposit in the Note Account
the amount of any loss of principal  incurred in respect of any such Permitted  Investment made with funds
in such Account immediately upon realization of such loss.

                  (d)      Except as  otherwise  expressly  provided  in this  Agreement,  if any  default
occurs in the  making of a payment  due under  any  Permitted  Investment,  or if a default  occurs in any
other  performance  required  under any  Permitted  Investment,  the  Indenture  Trustee may and, upon the
request of the Holders of the 50% of the  aggregate  Note Balance of the Notes,  shall take such action as
may be appropriate to enforce such payment or  performance,  including the  institution and prosecution of
appropriate proceedings.

                  Section 3.13.     [Reserved].

                  Section 3.14.     Maintenance of Hazard Insurance and Errors and Omissions and Fidelity
                                    Coverage.

                  (a)      The  Servicer  shall  cause to be  maintained  for each  Mortgage  Loan  hazard
insurance  with extended  coverage on the  Mortgaged  Property in an amount which is at least equal to the
lesser of (i) the current  Principal  Balance of such Mortgage Loan and (ii) the amount necessary to fully
compensate  for any damage or loss to the  improvements  that are a part of such property on a replacement
cost basis,  in each case in an amount not less than such amount as is necessary to avoid the  application
of any  coinsurance  clause  contained in the related  hazard  insurance  policy.  The Servicer shall also
cause to be maintained  hazard  insurance  with extended  coverage on each REO Property in an amount which
is at least equal to the lesser of (i) the maximum  insurable value of the  improvements  which are a part
of such property and (ii) the outstanding  Principal  Balance of the related  Mortgage Loan at the time it
became  an REO  Property.  The  Servicer  will  comply  in the  performance  of this  Agreement  with  all
reasonable  rules and  requirements  of each  insurer  under any such hazard  policies.  Any amounts to be
collected by the Servicer  under any such  policies  (other than amounts to be applied to the  restoration
or repair of the property  subject to the related  Mortgage or amounts to be released to the  Mortgagor in
accordance  with the  procedures  that the  Servicer  would  follow in  servicing  loans  held for its own
account,  subject  to the terms and  conditions  of the  related  Mortgage  and  Mortgage  Note)  shall be
deposited in the  Collection  Account,  subject to  withdrawal  pursuant to Section  3.11,  if received in
respect of a Mortgage  Loan,  or in the REO Account,  subject to  withdrawal  pursuant to Section 3.23, if
received  in respect of an REO  Property.  Any cost  incurred  by the  Servicer  in  maintaining  any such
insurance  shall not,  for the  purpose of  calculating  payments to  Noteholders,  be added to the unpaid
Principal  Balance of the related Mortgage Loan,  notwithstanding  that the terms of such Mortgage Loan so
permit.  It is understood  and agreed that no earthquake or other  additional  insurance is to be required
of any Mortgagor  other than pursuant to such  applicable  laws and regulations as shall at any time be in
force and as shall require such  additional  insurance.  If the  Mortgaged  Property or REO Property is at
any time in an area  identified  in the Federal  Register by the Federal  Emergency  Management  Agency as
having special flood hazards and flood  insurance has been made  available,  the Servicer will cause to be
maintained a flood insurance policy in respect  thereof.  Such flood insurance shall be in an amount equal
to the lesser of (i) the  unpaid  Principal  Balance of the  related  Mortgage  Loan and (ii) the  maximum
amount of such insurance  available for the related Mortgaged  Property under the national flood insurance
program  (assuming  that the area in which such  Mortgaged  Property is located is  participating  in such
program).

                  In the event that the  Servicer  shall  obtain and  maintain a blanket  policy  insuring
against  hazard losses on all of the Mortgage  Loans,  it shall  conclusively  be deemed to have satisfied
its  obligations  as set forth in the first two sentences of this Section 3.14,  it being  understood  and
agreed  that such  policy may  contain a  deductible  clause on terms  substantially  equivalent  to those
commercially  available and maintained by competent  servicers,  in which case the Servicer  shall, in the
event that there shall not have been  maintained  on the  related  Mortgaged  Property  or REO  Property a
policy  complying  with the first two  sentences  of this Section  3.14,  and there shall have been one or
more losses which would have been covered by such policy,  deposit to the Collection  Account from its own
funds the amount not otherwise  payable under the blanket policy  because of such  deductible  clause.  In
connection  with its  activities  as servicer of the Mortgage  Loans,  the Servicer  agrees to prepare and
present,  on behalf of itself,  the  Indenture  Trustee and  Noteholders,  claims  under any such  blanket
policy in a timely fashion in accordance with the terms of such policy.

                  (b)      The Servicer  shall keep in force during the term of this Agreement a policy or
policies of insurance  covering  errors and omissions  for failure in the  performance  of the  Servicer's
obligations  under this  Agreement,  which policy or policies  shall be in such form and amount that would
meet the  requirements  of Fannie Mae or  Freddie  Mac if it were the  purchaser  of the  Mortgage  Loans,
unless the  Servicer  has  obtained a waiver of such  requirements  from  Fannie Mae or Freddie  Mac.  The
Servicer  shall also maintain a fidelity bond in the form and amount that would meet the  requirements  of
Fannie Mae or Freddie Mac,  unless the Servicer  has  obtained a waiver of such  requirements  from Fannie
Mae or Freddie Mac. The Servicer  shall be deemed to have complied with this  provision if an Affiliate of
the  Servicer  has such  errors  and  omissions  and  fidelity  bond  coverage  and,  by the terms of such
insurance  policy or fidelity bond, the coverage  afforded  thereunder  extends to the Servicer.  Any such
errors and omissions  policy and fidelity bond shall by its terms not be cancelable  without  thirty days'
prior written  notice to the Master  Servicer and the  Indenture  Trustee.  The Servicer  shall also cause
each  Sub-Servicer  to maintain a policy of insurance  covering  errors and  omissions and a fidelity bond
which would meet such requirements.

                  Section 3.15.     Enforcement of Due-On-Sale Clauses; Assumption Agreements.

                  The Servicer  will,  to the extent it has  knowledge of any  conveyance  or  prospective
conveyance of any Mortgaged  Property by any Mortgagor  (whether by absolute  conveyance or by contract of
sale,  and whether or not the Mortgagor  remains or is to remain liable under the Mortgage Note and/or the
Mortgage),  exercise its rights to accelerate  the maturity of such Mortgage Loan under the  "due-on-sale"
clause, if any, applicable  thereto;  provided,  however,  that the Servicer shall not be required to take
such action if in its sole  business  judgment  the Servicer  believes it is not in the best  interests of
the Trust and shall not  exercise  any such  rights if  prohibited  by law from doing so. If the  Servicer
reasonably  believes it is unable under applicable law to enforce such "due-on-sale"  clause, or if any of
the other  conditions set forth in the proviso to the preceding  sentence  apply,  the Servicer will enter
into an  assumption  and  modification  agreement  from or with the person to whom such  property has been
conveyed or is proposed to be conveyed,  pursuant to which such person  becomes  liable under the Mortgage
Note and, to the extent  permitted by applicable  state law, the Mortgagor  remains  liable  thereon.  The
Servicer is also  authorized,  to the extent  permitted  under the related  Mortgage Note, to enter into a
substitution  of  liability  agreement  with such  person,  pursuant to which the  original  Mortgagor  is
released from  liability  and such person is  substituted  as the  Mortgagor and becomes  liable under the
Mortgage Note,  provided that no such  substitution  shall be effective  unless such person  satisfies the
current  underwriting  criteria of the Servicer for a mortgage loan similar to the related  Mortgage Loan.
In  connection  with  any  assumption,  modification  or  substitution,  the  Servicer  shall  apply  such
underwriting  standards  and follow  such  practices  and  procedures  as shall be normal and usual in its
general  mortgage  servicing  activities and as it applies to other mortgage loans owned solely by it. The
Servicer shall not take or enter into any assumption and modification  agreement,  however, unless (to the
extent  practicable  in the  circumstances)  it shall  have  received  confirmation,  in  writing,  of the
continued  effectiveness of any applicable hazard insurance  policy.  Any fee collected by the Servicer in
respect of an assumption,  modification or  substitution  of liability  agreement shall be retained by the
Servicer as additional servicing  compensation.  In connection with any such assumption,  no material term
of the  Mortgage  Note  (including  but not  limited to the  related  Mortgage  Rate and the amount of the
Monthly Payment) may be amended or modified,  except as otherwise  required pursuant to the terms thereof.
The  Servicer  shall  notify the Master  Servicer and the  Indenture  Trustee that any such  substitution,
modification or assumption  agreement has been completed by forwarding to the Custodian,  on behalf of the
Indenture  Trustee,  the executed  original of such  substitution,  modification or assumption  agreement,
which document shall be added to the related  Mortgage File and shall,  for all purposes,  be considered a
part of such Mortgage File to the same extent as all other documents and  instruments  constituting a part
thereof.

                  Notwithstanding  the foregoing  paragraph or any other provision of this Agreement,  the
Servicer  shall  not be  deemed  to be in  default,  breach  or any  other  violation  of its  obligations
hereunder  by reason of any  assumption  of a  Mortgage  Loan by  operation  of law or by the terms of the
Mortgage  Note or any  assumption  which the Servicer may be restricted  by law from  preventing,  for any
reason  whatsoever.  For purposes of this Section 3.15, the term  "assumption" is deemed to also include a
sale (of the  Mortgaged  Property)  subject to the Mortgage  that is not  accompanied  by an assumption or
substitution of liability agreement.

                  Section 3.16.     Realization Upon Defaulted Mortgage Loans.

                  (a)      The Servicer shall use its reasonable  efforts,  consistent  with the Servicing
Standard,  to foreclose upon or otherwise  comparably convert the ownership of properties securing such of
the Mortgage Loans as come into and continue in default and as to which no satisfactory  arrangements  can
be made for  collection  of  delinquent  payments  pursuant to Section  3.07.  Title to any such  property
shall be taken in the name of the  Indenture  Trustee or its  nominee on behalf of the  Noteholders  or in
the name of the Servicer in accordance  with the  Servicer's  customary  servicing  practices and held for
the benefit of the Trust,  subject to  applicable  law. The Servicer  shall be  responsible  for all costs
and  expenses  incurred by it in any such  proceedings;  provided,  however,  that such costs and expenses
will be recoverable as Servicing  Advances by the Servicer as  contemplated in Section 3.11(a) and Section
3.23.  The foregoing is subject to the provision  that,  in any case in which a Mortgaged  Property  shall
have suffered damage from an Uninsured  Cause,  the Servicer shall not be required to expend its own funds
toward  the  restoration  of  such  property  unless  it  shall  determine  in its  discretion  that  such
restoration  will increase the proceeds of  liquidation of the related  Mortgage Loan after  reimbursement
to itself for such expenses.

                  (b)      Notwithstanding  the  foregoing  provisions  of this  Section 3.16 or any other
provision  of this  Agreement,  with  respect to any  Mortgage  Loan as to which the Servicer has received
actual  notice of, or has actual  knowledge  of, the presence of any toxic or  hazardous  substance on the
related  Mortgaged  Property,  the  Servicer  shall not, on behalf of the  Indenture  Trustee,  either (i)
obtain title to such Mortgaged  Property as a result of or in lieu of  foreclosure  or otherwise,  or (ii)
otherwise acquire  possession of, or take any other action with respect to, such Mortgaged  Property,  if,
as a result of any such action,  the Indenture  Trustee,  the Trust or the Noteholders would be considered
to hold  title to,  to be a  "mortgagee-in-possession"  of,  or to be an  "owner"  or  "operator"  of such
Mortgaged  Property  within the meaning of the  Comprehensive  Environmental  Response,  Compensation  and
Liability Act of 1980, as amended from time to time, or any comparable  law,  unless the Servicer has also
previously  determined,  based on its reasonable  judgment and a report prepared by a Person who regularly
conducts environmental audits using customary industry standards, that:

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

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

                  The cost of the  environmental  audit report  contemplated by this Section 3.16 shall be
advanced by the Servicer,  subject to the Servicer's  right to be reimbursed  therefor from the Collection
Account as  provided in Section  3.11(a)(vii),  such right of  reimbursement  being prior to the rights of
Noteholders to receive any amount in the Collection  Account received in respect of the affected  Mortgage
Loan or other Mortgage Loans.

                  If the  Servicer  determines,  as  described  above,  that  it is in the  best  economic
interest of the Trust to take such actions as are  necessary  to bring any such  Mortgaged  Property  into
compliance with  applicable  environmental  laws, or to take such action with respect to the  containment,
clean-up  or   remediation   of  hazardous   substances,   hazardous   materials,   hazardous   wastes  or
petroleum-based  materials  affecting  any such  Mortgaged  Property,  then the  Servicer  shall take such
action as it deems to be in the best economic  interest of the Trust;  provided that any amounts disbursed
by the Servicer pursuant to this Section 3.16(b) shall constitute  Servicing Advances,  subject to Section
4.01(d).  The cost of any such compliance,  containment,  clean-up or remediation shall be advanced by the
Servicer,  subject to the  Servicer's  right to be  reimbursed  therefor  from the  Collection  Account as
provided in Section  3.11(a)(vii),  such right of  reimbursement  being prior to the rights of Noteholders
to receive any amount in the  Collection  Account  received in respect of the  affected  Mortgage  Loan or
other Mortgage Loans.

                  (c)      Reserved.

                  (d)      Proceeds received in connection with any Final Recovery Determination,  as well
as any recovery  resulting  from a partial  collection  of  Insurance  Proceeds,  Liquidation  Proceeds or
condemnation  proceeds,  in respect of any  Mortgage  Loan,  will be  applied  in the  following  order of
priority:  first, to unpaid Servicing Fees;  second, to reimburse the Servicer or any Sub-Servicer for any
related  unreimbursed  Servicing  Advances  pursuant  to Section  3.11(a)(iii)  and  Advances  pursuant to
Section  3.11(a)(ii);  third,  to accrued and unpaid  interest on the  Mortgage  Loan,  to the date of the
Final  Recovery  Determination,  or to the Due Date prior to the Payment Date on which such amounts are to
be paid if not in connection with a Final Recovery  Determination;  and fourth, as a recovery of principal
of the  Mortgage  Loan.  The  portion of the  recovery  so  allocated  to unpaid  Servicing  Fees shall be
reimbursed to the Servicer or any Sub-Servicer pursuant to Section 3.11(a)(iii).

                  Section 3.17.      Custodian  and Indenture  Trustee to Cooperate;  Release of Mortgage
                                    Files.

                  (a)      Upon the payment in full of any Mortgage  Loan,  or the receipt by the Servicer
of a  notification  that payment in full shall be escrowed in a manner  customary for such  purposes,  the
Servicer  shall  immediately  notify or cause to be notified  the  Custodian,  on behalf of the  Indenture
Trustee,  by a certification and shall deliver to the Custodian,  on behalf of the Indenture  Trustee,  in
written or  electronic  format,  which format is  acceptable to the  Custodian,  two executed  copies of a
Request for Release in the form of Exhibit C hereto  (which  certification  shall  include a statement  to
the effect  that all  amounts  received  or to be  received  in  connection  with such  payment  which are
required to be  deposited  in the  Collection  Account  pursuant  to Section  3.10 have been or will be so
deposited)  signed by a Servicing  Officer (or in a mutually  agreeable  electronic  format that will,  in
lieu of a signature on its face,  originate from a Servicing  Officer) and shall request delivery to it of
the  Mortgage  File.  Upon receipt of such  certification  and request,  the  Custodian,  on behalf of the
Indenture Trustee,  shall,  within three Business Days, release and send by overnight mail, at the expense
of the  Servicer  or the  related  Mortgagor,  the  related  Mortgage  File to the  Servicer.  No expenses
incurred in connection with any instrument of  satisfaction  or deed of  reconveyance  shall be chargeable
to the Collection Account or the Note Account.

                  (b)      From time to time and as  appropriate  for the servicing or  foreclosure of any
Mortgage  Loan,  including,  for this  purpose,  collection  under any  insurance  policy  relating to the
Mortgage Loans, the Custodian,  on behalf of the Indenture Trustee,  shall, upon any request made by or on
behalf  of the  Servicer  and  delivery  to the  Custodian,  on behalf of the  Indenture  Trustee,  of two
executed  copies of a written  Request for  Release in the form of Exhibit C hereto  signed by a Servicing
Officer  (or in a mutually  agreeable  electronic  format that will,  in lieu of a signature  on its face,
originate  from a Servicing  Officer),  release the related  Mortgage  File to the  Servicer  within three
Business Days, and the Indenture  Trustee shall, at the direction of the Servicer,  execute such documents
provided to it by the Servicer as shall be  necessary to the  prosecution  of any such  proceedings.  Such
Request for Release shall  obligate the Servicer to return each and every  document  previously  requested
from the Mortgage File to the Custodian  when the need therefor by the Servicer no longer  exists,  unless
the Mortgage Loan has been  liquidated  and the  Liquidation  Proceeds  relating to the Mortgage Loan have
been  deposited in the  Collection  Account or the Mortgage File or such document has been delivered to an
attorney,  or to a public trustee or other public  official as required by law, for purposes of initiating
or pursuing  legal action or other  proceedings  for the  foreclosure  of the  Mortgaged  Property  either
judicially  or  non-judicially,  and the  Servicer  has  delivered,  or  caused  to be  delivered,  to the
Custodian,  on behalf of the Indenture  Trustee,  an additional  Request for Release certifying as to such
liquidation or action or  proceedings.  Upon the request of the Indenture  Trustee or the  Custodian,  the
Servicer shall provide notice to the Indenture  Trustee or the Custodian,  as applicable,  of the name and
address of the Person to which such  Mortgage  File or such  document  was  delivered  and the  purpose or
purposes of such delivery.  Upon receipt of a Request for Release,  in written (with two executed  copies)
or electronic  format,  from a Servicing  Officer  stating that such Mortgage Loan was liquidated and that
all amounts  received  or to be  received in  connection  with such  liquidation  that are  required to be
deposited  into the  Collection  Account have been so deposited,  or that such Mortgage Loan has become an
REO Property,  such Mortgage Loan shall be released by the Custodian,  on behalf of the Indenture Trustee,
to the Servicer or its designee within three Business Days.

                  (c)      Upon written  certification of a Servicing Officer, the Indenture Trustee shall
execute  and  deliver  to the  Servicer  or the  Sub-Servicer,  as the case may be,  copies  of any  court
pleadings,  requests for Indenture  Trustee's  sale or other  documents  necessary to the  foreclosure  or
Indenture  Trustee's  sale in respect of a  Mortgaged  Property or to any legal  action  brought to obtain
judgment  against any  Mortgagor on the Mortgage Note or Mortgage or to obtain a deficiency  judgment,  or
to enforce any other remedies or rights  provided by the Mortgage Note or Mortgage or otherwise  available
at law or in equity.  Each such certification  shall include a request that such pleadings or documents be
executed by the  Indenture  Trustee  and a statement  as to the reason such  documents  or  pleadings  are
required and that the  execution  and delivery  thereof by the  Indenture  Trustee will not  invalidate or
otherwise  affect the lien of the Mortgage,  except for the  termination of such a lien upon completion of
the foreclosure or Indenture Trustee's sale.

                  Section 3.18.     Servicing Compensation.

                  As  compensation  for its  activities  hereunder,  the Servicer shall be entitled to the
Servicing Fee with respect to each  Mortgage  Loan payable  solely from payments of interest in respect of
such  Mortgage  Loan,  subject to Section  3.24.  In addition,  the Servicer  shall be entitled to recover
unpaid  Servicing  Fees  out  of  Insurance  Proceeds,  Liquidation  Proceeds,  Subsequent  Recoveries  or
condemnation  proceeds to the extent  permitted by Section  3.11(a)(iii)  and out of amounts  derived from
the operation and sale of an REO Property to the extent  permitted by Section 3.23.  Except as provided in
Section 3.29,  the right to receive the Servicing  Fee may not be  transferred  in whole or in part except
in connection  with the transfer of all of the  Servicer's  responsibilities  and  obligations  under this
Agreement;  provided,  however,  that the  Servicer  may pay from the  Servicing  Fee any amounts due to a
Sub-Servicer pursuant to a Sub-Servicing Agreement entered into under Section 3.02.

                  Additional  servicing  compensation  in  the  form  of  assumption  fees,  late  payment
charges,  insufficient  funds  charges or  ancillary  income  (other  than  Prepayment  Charges)  shall be
retained  by the  Servicer  only to the extent  such fees or charges are  received  by the  Servicer.  The
Servicer shall also be entitled  pursuant to Section  3.11(a)(iv) to withdraw from the Collection  Account
and pursuant to Section 3.23(b) to withdraw from any REO Account,  as additional  servicing  compensation,
interest or other  income  earned on deposits  therein,  subject to Section  3.12 and  Section  3.24.  The
Servicer shall also be entitled to receive  Prepayment  Interest  Excess pursuant to Section 3.10 and 3.11
as additional  servicing  compensation.  The Servicer shall be required to pay all expenses incurred by it
in connection with its servicing  activities  hereunder  (including premiums for the insurance required by
Section  3.14, to the extent such  premiums are not paid by the related  Mortgagors or by a  Sub-Servicer,
and servicing  compensation  of each  Sub-Servicer)  and shall not be entitled to  reimbursement  therefor
except as specifically provided herein.

                  The  Servicer  shall  be  entitled  to any  Prepayment  Interest  Excess,  which  it may
withdraw from the Collection Account pursuant to Section 3.11(a)(ix).

                  Section 3.19.     Reports  to the  Securities  Administrator  and  Others;  Collection
                                    Account Statements.

                  On  each  Servicer  Remittance  Date,  the  Servicer  shall  forward  to the  Securities
Administrator,  the Master  Servicer,  the Sponsor and the Depositor an account  statement  evidencing the
status of the collection account reflecting  activity in the previous month and an Officer's  Certificates
shall  accompany  such  account  statement  certifying  that the  information  contained  in such  account
statement is true and correct.

                  Section 3.20.     Statement as to Compliance.

                  (a)      The Servicer,  Master  Servicer and Securities  Administrator  shall deliver to
the  Depositor  and the  Securities  Administrator,  not  later  than  March  15th of each  calendar  year
beginning in 2008 an Officers'  Certificate  (an "Annual  Statement of  Compliance")  stating,  as to each
signatory  thereof,  that (i) a review of the activities of each such party during the preceding  calendar
year and of performance  under this Agreement has been made under such officers'  supervision  and (ii) to
the best of such  officers'  knowledge,  based on such  review,  the  Servicer  has  fulfilled  all of its
obligations  under this Agreement in all material  respects  throughout such year, or, if there has been a
failure to fulfill any such  obligation  in any material  respect,  specifying  each such failure known to
such officer and the nature and status of cure  provisions  thereof.  Such Annual  Statement of Compliance
shall contain no  restrictions  or  limitations on its use. The Servicer,  Master  Servicer and Securities
Administrator   shall  deliver  a  similar  Annual   Statement  of  Compliance  by  any   Sub-Servicer  or
subcontractor  to which the  Servicer,  Master  Servicer or  Securities  Administrator  has  delegated any
servicing  responsibilities  with respect to the  Mortgage  Loans,  to the  Depositor  and the  Securities
Administrator as described above as and when required with respect to the Servicer.

                  Failure of the  Servicer or Master  Servicer to timely  comply  with this  Section  3.20
shall be deemed a Servicer Event of Termination or Master  Servicer Event of  Termination,  as applicable,
and the Indenture  Trustee shall,  at the direction of the Depositor,  in addition to whatever  rights the
Indenture Trustee may have under this Agreement and at law or equity or to damages,  including  injunctive
relief and specific  performance,  upon notice immediately terminate all the rights and obligations of the
Servicer or Master  Servicer,  as  applicable,  under this  Agreement and in and to the Mortgage Loans and
the proceeds thereof without  compensating the Servicer or Master  Servicer,  as applicable,  for the same
(other than as provided  herein with respect to  unreimbursed  Advances or  Servicing  Advances or accrued
and unpaid  Servicing  Fees).  This paragraph shall supersede any other provision in this Agreement or any
other agreement to the contrary.

                  The Servicer shall  indemnify and hold harmless the Depositor,  the Sponsor,  the Master
Servicer,  the Securities  Administrator,  the Owner Trustee and the Indenture Trustee,  as applicable and
their respective officers,  directors and Affiliates from and against any actual losses, damages,  claims,
penalties,  fines,  forfeitures,  reasonable  and necessary  legal fees and related  costs,  judgments and
other costs and expenses  that such Person may sustain based upon a breach of the  Servicer's  obligations
under this Section 3.20.

                  Section 3.21.     Assessments of Compliance and Attestation Reports.

                  Pursuant  to Rules  13a-18 and 15d-18 of the  Exchange  Act and Item 1122 of  Regulation
AB, the Servicer,  Master Servicer,  Securities  Administrator  and Custodian (each an "Attesting  Party")
shall deliver to the Securities  Administrator  and the Depositor on or before March 15th of each calendar
year  beginning  in  2008,  a report  regarding  such  Attesting  Party's  assessment  of  compliance  (an
"Assessment of Compliance") with the applicable  Servicing Criteria (as set forth in Exhibit H) during the
preceding calendar year.  The Assessment of Compliance must contain the following:

                           (i)      A statement by an authorized  officer of such  Attesting  Party of its
         responsibility  for  assessing   compliance  with  the  Servicing  Criteria  applicable  to  such
         Attesting Party;

                           (ii)     A statement  by an  authorized  officer of such  Attesting  Party that
         such officer used the Servicing  Criteria,  and which will also be attached to the  Assessment of
         Compliance, to assess compliance with the Servicing Criteria applicable to such Attesting Party;

                           (iii)    An  assessment  by an authorized  officer of such  Attesting  Party of
         such  Attesting  Party's  compliance  with  the  applicable  Servicing  Criteria  for the  period
         consisting of the  preceding  calendar  year,  including  disclosure of any material  instance of
         noncompliance  with respect thereto during such period,  which  assessment  shall be based on the
         activities  it performs with respect to  asset-backed  securities  transactions  taken as a whole
         involving such Attesting Party, that are backed by the same asset type as the Mortgage Loans;

                           (iv)     A statement  that a registered  public  accounting  firm has issued an
         attestation  report on such Attesting Party's  Assessment of Compliance for the period consisting
         of the preceding calendar year; and

                           (v)      A statement  as to which of the  Servicing  Criteria,  if any, are not
         applicable  to such  Attesting  Party,  which  statement  shall  be based  on the  activities  it
         performs with respect to  asset-backed  securities  transactions  taken as a whole involving such
         Attesting Party, that are backed by the same asset type as the Mortgage Loans.

                  Such report at a minimum  shall  address  each of the  Servicing  Criteria  specified on
Exhibit H hereto which are indicated as applicable to such Attesting Party.

                  On or before March 15th of each calendar year beginning in 2008,  each  Attesting  Party
shall furnish to the Depositor and the Securities  Administrator a report (an  "Attestation  Report") by a
registered  public  accounting  firm that attests to, and reports on, the Assessment of Compliance made by
such  Attesting  Party,  as required by Rules  13a-18 and 15d-18 of the  Exchange  Act and Item 1122(b) of
Regulation  AB,  which  Attestation  Report must be made in  accordance  with  standards  for  attestation
reports issued or adopted by the Public Company Accounting Oversight Board.

                  The Servicer,  Master Servicer,  Securities  Administrator and Custodian shall cause any
Sub-Servicer  engaged  by it, and each  subcontractor  engaged  by it and  determined  by such party to be
"participating in the servicing  function" within the meaning of Item 1122 of Regulation AB, to deliver to
the Securities  Administrator and the Depositor an Assessment of Compliance and Attestation  Report as and
when provided above.

                  Such  Assessment  of  Compliance,  as to any  Sub-Servicer,  shall  address  each of the
Servicing Criteria  applicable to the Sub-Servicer.  Such Assessment of Compliance,  as to any subservicer
or  subcontractor,  shall at a minimum address the applicable  Servicing  Criteria  specified on Exhibit H
hereto which are  indicated as  applicable  to any "primary  servicer" to the extent such  subservicer  or
subcontractor  is performing  any  servicing  function for the party who engages it and to the extent such
party is not itself  addressing  the  Servicing  Criteria  related to such  servicing  function in its own
Assessment of  Compliance.  The  Securities  Administrator  shall confirm that each of the  Assessments of
Compliance  delivered  to it,  taken  as a  whole,  address  all  of  the  Servicing  Criteria  and  taken
individually  address  the  Servicing  Criteria  for each  party as set forth in  Exhibit H and notify the
Depositor of any exceptions.  Notwithstanding  the foregoing,  as to any  subcontractor,  an Assessment of
Compliance  is not required to be  delivered  unless it is required as part of a Form 10-K with respect to
the Trust Fund.

                  The  Custodian  shall  deliver to the  Securities  Administrator  and the  Depositor  an
Assessment of Compliance and  Attestation  Report,  as and when provided  above,  which shall at a minimum
address each of the  Servicing  Criteria  specified on Exhibit H hereto which are  indicated as applicable
to a  "custodian".  Notwithstanding  the foregoing,  an Assessment of Compliance or Attestation  Report is
not required to be delivered  by any  Custodian  unless it is required as part of a Form 10-K with respect
to the Trust Fund.

                  The Custodian  has not and shall not engage any  Subcontractor  which is  "participating
in the servicing  function"  within the meaning of Item 1122 of Regulation  AB, unless such  Subcontractor
provides,  beginning  March 1, 2008,  a report and a statement  of a  registered  public  accounting  firm
certifying its compliance with the applicable servicing criteria in Item 1122(d) of Regulation AB.

                  Failure of the  Servicer or Master  Servicer to timely  comply  with this  Section  3.21
shall be deemed a Servicer Event of Termination or Master  Servicer Event of  Termination,  as applicable,
and the Indenture  Trustee shall,  at the direction of the Depositor,  in addition to whatever  rights the
Indenture Trustee may have under this Agreement and at law or equity or to damages,  including  injunctive
relief and specific  performance,  upon notice immediately terminate all the rights and obligations of the
Servicer or Master  Servicer,  as  applicable,  under this  Agreement and in and to the Mortgage Loans and
the proceeds thereof without  compensating the Servicer or Master  Servicer,  as applicable,  for the same
(other than as provided  herein with respect to  unreimbursed  Advances or  Servicing  Advances or accrued
and unpaid  Servicing  Fees).  This paragraph shall supercede any other provision in this Agreement or any
other agreement to the contrary.  The Successor  Servicer or Successor  Master Servicer shall  immediately
assume  the  rights  and  obligations  of the  Servicer  or Master  Servicer,  as  applicable,  under this
Agreement.

                  The Servicer  shall  indemnify  and hold  harmless the  Depositor,  the  Custodian,  the
Master Servicer,  the Securities  Administrator,  the Sponsor, the Owner Trustee and the Indenture Trustee
and their  respective  officers,  directors and Affiliates  against and from any actual  losses,  damages,
claims, penalties,  fines,  forfeitures,  reasonable and necessary legal fees and related costs, judgments
and  other  costs  and  expenses  that such  Person  may  sustain  based  upon a breach of the  Servicer's
obligations under this Section 3.21.

                  The Master  Servicer shall indemnify and hold harmless the Depositor,  the Sponsor,  the
Owner Trustee and the Indenture Trustee and their respective  officers,  directors and Affiliates  against
and from any actual losses,  damages,  claims,  penalties,  fines,  forfeitures,  reasonable and necessary
legal fees and related  costs,  judgments  and other costs and expenses that such Person may sustain based
upon a breach of the Master Servicer's obligations under this Section 3.21.

                  The  Securities  Administrator  shall  indemnify  and hold harmless the  Depositor,  the
Sponsor,  the Owner  Trustee  and the  Indenture  Trustee and their  respective  officers,  directors  and
Affiliates  against  and  from  any  actual  losses,  damages,  claims,  penalties,   fines,  forfeitures,
reasonable and necessary  legal fees and related  costs,  judgments and other costs and expenses that such
Person may sustain based upon a breach of the Securities  Administrator's  obligations  under this Section
3.21.

                  Notwithstanding  the  foregoing  provisions  of Section  3.21,  in any calendar  year in
which an annual report on Form 10-K is not required to be filed,  then, in each such event,  the Servicer,
Master  Servicer and  Securities  Administrator  may, in lieu of providing an assessment of compliance and
attestation  thereon in accordance  with Item 1122 of Regulation AB,  provide (and cause each  Subservicer
and Subcontractor  described above to provide) to the Depositor,  the Sponsor and the Master Servicer,  by
not later  than  March 1 of such  calendar  year,  an Annual  Independent  Public  Accountants'  Servicing
Report.  If the Servicer,  Master  Servicer or  Securities  Administrator  provides an Annual  Independent
Public  Accountants'  Servicing Report pursuant to this paragraph,  then the certification  required to be
delivered  by the  Servicer,  Master  Servicer  and  Securities  Administrator,  as  applicable  (and  its
Subservicers and Subcontractors), shall be in the form of Exhibit G-1 attached hereto.

                  Section 3.22.     Access to Certain Documentation.

                  The  Servicer  shall  provide to the  Office of Thrift  Supervision,  the FDIC,  and any
other federal or state banking or insurance  regulatory  authority  that may exercise  authority  over any
Noteholder,  access to the  documentation  regarding the Mortgage  Loans  required by applicable  laws and
regulations.  Such access shall be afforded  without charge,  but only upon reasonable  request and during
normal  business  hours at the  offices  of the  Servicer  designated  by it. In  addition,  access to the
documentation  regarding the Mortgage  Loans will be provided to any  Noteholder,  the Indenture  Trustee,
the Owner  Trustee,  the Master  Servicer and to any Person  identified  to the Servicer as a  prospective
transferee  of a Note,  upon  reasonable  request  during  normal  business  hours at the  offices  of the
Servicer designated by it, at the expense of the Person requesting such access.

                  Section 3.23.     Title, Management and Disposition of REO Property.

                  (a)      The  deed  or  certificate  of  sale  of any REO  Property  shall,  subject  to
applicable laws, be taken in the name of the Indenture Trustee,  or its nominee,  in trust for the benefit
of the  Noteholders or in the name of the Servicer in accordance with the Servicer's  customary  servicing
practices and held for the benefit of the Trust.  The  Servicer,  on behalf of the Issuing  Entity,  shall
sell any REO  Property  as soon as  practicable  and in any event no later  than the end of the third full
taxable year after the taxable year in which such Issuing Entity  acquires  ownership of such REO Property
for purposes of the Code or request from the Internal  Revenue  Service,  no later than 60 days before the
day on which the three-year grace period would otherwise expire,  an extension of such three-year  period.
The Servicer  shall manage,  conserve,  protect and operate each REO Property for the  Noteholders  solely
for the purpose of its prompt  disposition  and sale in a manner which does not cause such REO Property to
fail to qualify as "foreclosure property" within the meaning of the Code.

                  (b)      The Servicer shall  separately  account for all funds collected and received in
connection  with the  operation of any REO  Property  and shall  establish  and  maintain,  or cause to be
established  and  maintained,  with respect to REO  Properties  an account held in trust for the Indenture
Trustee for the benefit of the Noteholders (the "REO Account"),  which shall be an Eligible  Account.  The
Servicer  shall be  permitted  to allow the  Collection  Account to serve as the REO  Account,  subject to
separate  ledgers  for each REO  Property.  The  Servicer  shall be  entitled  to retain or  withdraw  any
interest income paid on funds deposited in the REO Account.

                  (c)      The Servicer shall have full power and authority,  subject only to the specific
requirements  and  prohibitions  of this  Agreement,  to do any and all things in connection  with any REO
Property as are consistent  with the manner in which the Servicer  manages and operates  similar  property
owned by the  Servicer or any of its  Affiliates,  all on such terms and for such  period  (subject to the
requirement of prompt  disposition  set forth in Section  3.23(a)) as the Servicer deems to be in the best
interests of Noteholders.  In connection  therewith,  the Servicer shall deposit, or cause to be deposited
in the REO Account,  in no event more than two Business Days after the  Servicer's  receipt  thereof,  all
revenues  received by it with respect to an REO Property and shall withdraw  therefrom funds necessary for
the proper operation, management and maintenance of such REO Property including, without limitation:

                           (i)      all  insurance  premiums  due and  payable  in  respect  of  such  REO
         Property;

                           (ii)     all real estate taxes and  assessments in respect of such REO Property
         that may result in the imposition of a lien thereon; and

                           (iii)    all costs and expenses  necessary to maintain,  operate and dispose of
         such REO Property.

                  To the  extent  that  amounts  on  deposit  in the REO  Account  with  respect to an REO
Property are  insufficient  for the purposes set forth in clauses (i) through  (iii) above with respect to
such REO  Property,  the Servicer  shall  advance from its own funds such amount as is necessary  for such
purposes if, but only if, the  Servicer  would make such  advances if the Servicer  owned the REO Property
and if in the  Servicer's  judgment,  the payment of such amounts will be  recoverable  from the rental or
sale of the REO Property.

                  The  Servicer  may  contract  with any  Independent  Contractor  for the  operation  and
management of any REO Property, provided that:

                           (i)      the  terms  and   conditions  of  any  such  contract   shall  not  be
         inconsistent herewith;

                           (ii)     any such contract shall require,  or shall be administered to require,
         that the  Independent  Contractor  pay all costs and  expenses  incurred in  connection  with the
         operation  and  management  of such REO  Property,  including  those  listed  above and remit all
         related  revenues  (net of such costs and expenses) to the Servicer as soon as  practicable,  but
         in no event later than thirty days following the receipt thereof by such Independent Contractor;

                           (iii)    none of the  provisions of this Section  3.23(c)  relating to any such
         contract or to actions taken through any such  Independent  Contractor shall be deemed to relieve
         the  Servicer  of any of its duties and  obligations  to the  Indenture  Trustee on behalf of the
         Noteholders with respect to the operation and management of any such REO Property; and

                           (iv)     the  Servicer  shall be  obligated  with  respect  thereto to the same
         extent  as if it alone  were  performing  all  duties  and  obligations  in  connection  with the
         operation and management of such REO Property.

                  The  Servicer  shall be  entitled  to  enter  into any  agreement  with any  Independent
Contractor   performing   services  for  it  related  to  its  duties  and   obligations   hereunder   for
indemnification  of the Servicer by such  Independent  Contractor,  and nothing in this Agreement shall be
deemed to limit or modify such  indemnification.  The  Servicer  shall be solely  liable for all fees owed
by it to any such Independent  Contractor,  irrespective of whether the Servicer's  compensation  pursuant
to Section 3.18 is sufficient to pay such fees;  provided,  however,  that to the extent that any payments
made by such  Independent  Contractor would constitute  Servicing  Advances if made by the Servicer,  such
amounts shall be reimbursable as Servicing Advances made by the Servicer.

                  (d)      In addition to the withdrawals  permitted under Section  3.23(c),  the Servicer
may from time to time make  withdrawals  from the REO Account for any REO  Property:  (i) to pay itself or
any  Sub-Servicer  unpaid  Servicing  Fees in respect of the related  Mortgage Loan; and (ii) to reimburse
itself or any Sub-Servicer for  unreimbursed  Servicing  Advances and Advances made in respect of such REO
Property or the related  Mortgage Loan. On the Servicer  Remittance Date, the Servicer shall withdraw from
each  REO  Account  maintained  by it and  deposit  into the  Note  Account  in  accordance  with  Section
3.10(d)(ii),  for payment on the related  Payment Date in accordance  with Section 3.05 of the  Indenture,
the  income  from  the  related  REO  Property  received  during  the  prior  calendar  month,  net of any
withdrawals made pursuant to Section 3.23(c) or this Section 3.23(d).

                  (e)      Subject  to the  time  constraints  set  forth  in  Section  3.23(a),  each REO
Disposition  shall be  carried  out by the  Servicer  in a manner,  at such  price and upon such terms and
conditions as shall be normal and usual in the Servicing Standard.

                  (f)      The proceeds from the REO Disposition,  net of any amount required by law to be
remitted to the Mortgagor under the related  Mortgage Loan and net of any payment or  reimbursement to the
Servicer or any  Sub-Servicer  as provided  above,  shall be deposited  in the Note Account in  accordance
with Section  3.10(d)(ii) on the Servicer  Remittance  Date in the month following the receipt thereof for
payment  on the  related  Payment  Date  in  accordance  with  Section  3.05  of the  Indenture.  Any  REO
Disposition  shall be for cash  only  (unless  changes  in the REMIC  Provisions  made  subsequent  to the
Closing Date allow a sale for other consideration).

                  (g)      The  Servicer  shall file  information  returns  with respect to the receipt of
mortgage  interest  received in a trade or  business,  reports of  foreclosures  and  abandonments  of any
Mortgaged  Property and  cancellation  of  indebtedness  income with respect to any Mortgaged  Property as
required  by the Code.  Such  reports  shall be in form and  substance  sufficient  to meet the  reporting
requirements of the Code.

                  Section 3.24.     Obligations  of the  Servicer  in  Respect  of  Prepayment  Interest
                                    Shortfalls.

                  Not later than 4:00 p.m. New York time on each Servicer  Remittance  Date,  the Servicer
shall  remit to the Note  Account  an  amount  ("Compensating  Interest")  equal to the  lesser of (A) the
aggregate  of the  Prepayment  Interest  Shortfalls  for the related  Payment  Date and (B) its  aggregate
Servicing Fee for the related  Payment Date.  The Servicer shall not have the right to  reimbursement  for
any amounts  remitted to the Securities  Administrator in respect of Compensating  Interest.  Such amounts
so remitted  shall be included in the Available  Funds and paid  therewith on the next Payment  Date.  The
Servicer  shall not be  obligated  to pay  Compensating  Interest  with  respect  to Relief  Act  Interest
Shortfalls.

                  Section 3.25.     [Reserved].

                  Section 3.26.     Obligations  of the Servicer in Respect of Mortgage Rates and Monthly
                                    Payments.

                  In the event that a shortfall  in any  collection  on or  liability  with respect to the
Mortgage  Loans in the  aggregate  results  from or is  attributable  to  adjustments  to Mortgage  Rates,
Monthly  Payments or Stated  Principal  Balances that were made by the Servicer in a manner not consistent
with the terms of the related  Mortgage Note and this Agreement,  the Servicer,  upon discovery or receipt
of notice thereof,  immediately  shall deposit in the Collection  Account from its own funds the amount of
any such  shortfall  and  shall  indemnify  and hold  harmless  the  Trust,  the  Indenture  Trustee,  the
Depositor, the Securities Administrator,  the Master Servicer and any successor servicer in respect of any
such  liability.  Such  indemnities  shall survive the  resignation  or termination of the Servicer or the
termination  or  discharge  of this  Agreement  or the  Indenture.  Notwithstanding  the  foregoing,  this
Section  3.26 shall not limit the ability of the  Servicer to seek  recovery of any such  amounts from the
related Mortgagor under the terms of the related Mortgage Note, as permitted by law.

                  Section 3.27.     [Reserved].

                  Section 3.28.     [Reserved].

                  Section 3.29.     Advance Facility.

                  The  Servicer is hereby  authorized  to enter into a financing  or other  facility  (any
such  arrangement,  an "Advance  Facility")  under  which (1) the  Servicer  sells,  assigns or pledges to
another  Person  (together  with  such  Person's  successors  and  assigns,  an  "Advancing  Person")  the
Servicer's rights under this Agreement to be reimbursed for any Advances or Servicing  Advances and/or (2)
an Advancing Person agrees to fund some or all Advances and/or Servicing  Advances  required to be made by
the Servicer pursuant to this Agreement.  No consent of the Depositor,  the Indenture  Trustee,the  Master
Servicer,  the Securities  Administrator  the  Noteholders or any other party shall be required before the
Servicer  may enter  into an  Advance  Facility.  The  Servicer  shall  notify  each  other  party to this
Agreement  in writing  prior to or promptly  after  entering  into or  terminating  any  Advance  Facility
stating the identity of the  Advancing  Person.  Notwithstanding  the  existence  of any Advance  Facility
under which an Advancing  Person  agrees to fund  Advances  and/or  Servicing  Advances on the  Servicer's
behalf,  the Servicer  shall remain  obligated  pursuant to this  Agreement to make Advances and Servicing
Advances  pursuant  to and as  required  by  this  Agreement.  If the  Servicer  enters  into  an  Advance
Facility,  and for so long as an  Advancing  Person  remains  entitled  to receive  reimbursement  for any
Advances including  Nonrecoverable  Advances ("Advance  Reimbursement  Amounts") and/or Servicing Advances
including  Nonrecoverable  Advances ("Servicing Advance  Reimbursement  Amounts" and together with Advance
Reimbursement  Amounts,  "Reimbursement  Amounts") (in each case to the extent such type of  Reimbursement
Amount is  included  in the  Advance  Facility),  as  applicable,  pursuant  to this  Agreement,  then the
Servicer  shall  identify,  in the  Officer's  Certificate  described  in the  next  two  sentences,  such
Reimbursement  Amounts consistent with the reimbursement rights set forth in Section  3.11(a)(ii),  (iii),
(vi) and (vii) and remit such  Reimbursement  Amounts in accordance  with Section  3.10(b) or otherwise in
accordance  with the  documentation  establishing  the Advance  Facility to such Advancing  Person or to a
trustee,  agent or  custodian  (an  "Advance  Facility  Trustee")  designated  by such  Advancing  Person.
Notwithstanding  the  foregoing,  if so  required  pursuant  to the  terms of the  Advance  Facility,  the
Servicer may direct,  and if so directed the Securities  Administrator  is hereby  authorized to and shall
pay to the Advance  Facility  Trustee  the  Reimbursement  Amounts  identified  pursuant to the  preceding
sentence.  To the extent  that an  Advancing  Person  funds any  Advance  and the  Servicer  provides  the
Securities  Administrator and Master Servicer with an Officer's  Certificate that such Advancing Person is
entitled to reimbursement,  such Advancing Person shall be entitled to receive  reimbursement  pursuant to
this Agreement for such amount to the extent  provided in this section.  Such Officer's  Certificate  must
specify the amount of the  reimbursement,  the remittance date, the Section of this Agreement that permits
the applicable  Advance to be reimbursed  and either the  section(s) of the Advance  Facility that entitle
the  Advancing  Person  to  request  reimbursement  from the  Securities  Administrator,  rather  than the
Servicer,  or proof of an event of  default by the  Servicer  under the  Advance  Facility  entitling  the
Advancing  Person to  reimbursement  from the Securities  Administrator.  Notwithstanding  anything to the
contrary  herein,  in no event shall  Advance  Reimbursement  Amounts or Servicing  Advance  Reimbursement
Amounts be included in the Available Funds or paid to Noteholders.

                  Reimbursement  Amounts  shall  consist  solely of amounts in respect of Advances  and/or
Servicing  Advances made with respect to the Mortgage  Loans for which the Servicer  would be permitted to
reimburse  itself in accordance  with this  Agreement,  assuming the Servicer or the Advancing  Person had
made the related  Advance(s)  and/or  Servicing  Advance(s).  Notwithstanding  the foregoing,  except with
respect to reimbursement  of  Nonrecoverable  Advances as set forth in this Agreement,  no Person shall be
entitled to  reimbursement  from funds held in the  Collection  Account for future  payment to Noteholders
pursuant to this  Agreement.  None of the Depositor,  Master  Servicer,  Securities  Administrator  or the
Indenture  Trustee shall have any duty or liability with respect to the  calculation of any  Reimbursement
Amount and shall be entitled to rely,  without  independent  investigation,  on the Officer's  Certificate
provided  pursuant  to  this  Section  3.29,  nor  shall  the  Depositor,   Master  Servicer,   Securities
Administrator  or the Indenture  Trustee have any  responsibility  to track or monitor the  administration
of any Advance Facility and the Depositor shall not have any  responsibility  to track,  monitor or verify
the payment of Reimbursement  Amounts to the related  Advancing Person or Advance  Facility  Trustee.  The
Servicer  shall maintain and provide to any successor  servicer and (upon request) the Indenture  Trustee,
Master Servicer or Securities  Administrator  a detailed  accounting on a loan by loan basis as to amounts
advanced  by,  sold,  pledged or assigned  to, and  reimbursed  to any  Advancing  Person.  The  Successor
Servicer shall be entitled to rely on any such information provided by the predecessor  servicer,  and the
Successor  Servicer shall not be liable for any errors in such information.  Any Successor  Servicer shall
reimburse  the  predecessor   Servicer  and  itself  for  outstanding  Advances  and  Servicing  Advances,
respectively,  with respect to each Mortgage Loan on a first in, first out ("FIFO")  basis;  provided that
the Successor  Servicer has received prior written notice from the  predecessor  Servicer or the Advancing
Person of reimbursement  amounts owed to the predecessor  Servicer.  Liquidation  Proceeds with respect to
a Mortgage  Loan shall be applied to reimburse  Advances  outstanding  with respect to that  Mortgage Loan
before being applied to reimburse Servicing Advances outstanding with respect to that Mortgage Loan.

                  An  Advancing  Person  who  receives  an  assignment  or  pledge  of  the  rights  to be
reimbursed for Advances and/or Servicing Advances,  and/or whose obligations  hereunder are limited to the
funding or purchase of Advances and/or  Servicing  Advances shall not be required to meet the criteria for
qualification of a subservicer set forth in this Agreement.

                  Upon the direction of and at the expense of the Servicer,  the Securities  Administrator
agrees to execute  such  acknowledgments,  certificates,  and other  documents  provided  by the  Servicer
recognizing the interests of any Advance  Facility Trustee in such  Reimbursement  Amounts as the Servicer
may cause to be made subject to Advance Facilities pursuant to this Section 3.29.

                  The  Servicer  shall remain  entitled to be  reimbursed  for all Advances and  Servicing
Advances  funded by the Servicer to the extent the related rights to be reimbursed  therefor have not been
sold, assigned or pledged to an Advancing Person.

                  The Servicer shall indemnify the Depositor,  the Indenture  Trustee,  the Owner Trustee,
the Master  Servicer,  the Securities  Administrator,  any Successor  Servicer and the Trust for any loss,
liability or damage resulting from any Advance Facility,  including,  without limitation, any claim by the
related Advancing Person,  except to the extent that such claim,  loss,  liability or damage resulted from
or arose out of negligence,  recklessness or willful  misconduct or breach of its duties  hereunder on the
part of the Depositor, the Indenture Trustee or any successor servicer.

                  Any  amendment  to this Section 3.29 or to any other  provision of this  Agreement  that
may be  necessary or  appropriate  to effect the terms of an Advance  Facility as  described  generally in
this Section  3.29,  including  amendments  to add  provisions  relating to a successor  servicer,  may be
entered  into by the  Indenture  Trustee,  the  Depositor  and the  Servicer  without  the  consent of any
Noteholder but with the consent of the Majority  Certificateholder,  provided such amendment complies with
Section 7.01 hereof.  All reasonable costs and expenses  (including  attorneys' fees) of each party hereto
of any such  amendment  shall  be  borne  solely  by the  Servicer.  Prior  to  entering  into an  Advance
Facility,  the Servicer  shall  notify the  Advancing  Person in writing  that:  (a) the  Advances  and/or
Servicing Advances  purchased,  financed by and/or pledged to the Advancing Person are obligations owed to
the Servicer on a  non-recourse  basis payable only from the cash flows and proceeds  received  under this
Agreement for  reimbursement  of Advances and/or  Servicing  Advances only to the extent provided  herein,
and none of the Indenture Trustee,  the Securities  Administrator nor the Trust are otherwise obligated or
liable to repay any Advances and/or  Servicing  Advances  financed by the Advancing Person and (b) none of
the Indenture  Trustee,  Master  Servicer or Securities  Administrator  shall have any  responsibility  to
calculate any  Reimbursement  Amounts or to track or monitor the  administration  of the Advance  Facility
between the Servicer and the Advancing Person.

                  Section 3.30.     Master Servicer.

                  The  Master  Servicer  shall  supervise,  monitor  and  oversee  the  obligation  of the
Servicer to service and administer  the Mortgage  Loans in accordance  with the terms of the Agreement and
shall have full power and  authority to do any and all things which it may deem  necessary or desirable in
connection with such master servicing and  administration.  In performing its obligations  hereunder,  the
Master Servicer shall act in a manner  consistent with Accepted Master Servicing  Practices.  Furthermore,
the Master  Servicer shall oversee and consult with the Servicer as necessary from  time-to-time  to carry
out the Master  Servicer's  obligations  hereunder,  shall  receive,  review  and  evaluate  all  reports,
information  and other  data  provided  to the Master  Servicer  by the  Servicer  and shall  enforce  the
obligations  of the  Servicer to perform  and observe the  covenants,  obligations  and  conditions  to be
performed or observed by the Servicer under this Agreement.  The Master Servicer shall  independently  and
separately  monitor the  Servicer's  servicing  activities  with  respect to each related  Mortgage  Loan,
reconcile the results of such  monitoring  with such  information  provided in the previous  sentence on a
monthly basis and coordinate  corrective  adjustments to the  Servicer's  and Master  Servicer's  records.
The  Master  Servicer  shall  reconcile  the  results  of its  Mortgage  Loan  monitoring  with the actual
remittances  of the  Servicer  to the Note  Account  pursuant  to the terms  hereof  based on  information
provided to the Master  Servicer  by the  Securities  Administrator  pursuant  to the third  paragraph  of
Section 6.01(j) of the Indenture.

                  The Indenture Trustee,  Master Servicer,  Custodian and Securities  Administrator  shall
provide  access,  in each case to the records and  documentation  in possession of the Indenture  Trustee,
the Mater Servicer,  the Custodian,  or the Securities  Administrator,  as the case may be,  regarding the
related Mortgage Loans and REO Property and the servicing  thereof to the  Noteholders,  the FDIC, and the
supervisory  agents and  examiners of the FDIC,  such access being  afforded  only upon  reasonable  prior
written  request and during normal  business hours at the office of the Indenture  Trustee,  the Custodian
or the Securities  Administrator;  provided,  however, that, unless otherwise required by law, none of the
Indenture Trustee,  the Custodian or the Securities  Administrator  shall be required to provide access to
such records and  documentation  if the provision  thereof would violate the legal right to privacy of any
Mortgagor.   The  Indenture  Trustee,   the  Custodian  and  the  Securities   Administrator  shall  allow
representatives  of the above  entities,  in each case to photocopy  any of the records and  documentation
and shall  provide  equipment  for that  purpose at a charge  that  covers the  Indenture  Trustee's,  the
Custodian's or the Securities Administrator's, as the case may be, actual costs.

                  Section 3.31.     Monitoring of Servicer.

                  (a)      The Master  Servicer shall be responsible  for monitoring the compliance by the
Servicer with its duties under this  Agreement.  In the review of the  Servicer's  activities,  the Master
Servicer may rely upon an Officer's  Certificate of the Servicer with regard to the Servicer's  compliance
with the terms of this  Agreement.  In the event that the Master  Servicer,  in its  judgment,  determines
that the Servicer  should be terminated in  accordance  with the terms hereof,  or that a notice should be
sent  pursuant to the terms hereof with respect to the  occurrence of an event that,  unless cured,  would
constitute a Servicer Event of  Termination,  the Master  Servicer  shall notify the Servicer,  the Seller
and the  Indenture  Trustee  thereof  and the Master  Servicer  shall issue such notice or take such other
action as it deems appropriate.

                  (b)      The  Master  Servicer,  for  the  benefit  of the  Indenture  Trustee  and  the
Noteholders,  shall enforce the obligations of the Servicer under this Agreement,  and shall, in the event
that the Servicer  fails to perform its  obligations  in accordance  with this  Agreement,  subject to the
preceding  paragraph,  Article III and Article VI, to terminate the rights and obligations of the Servicer
hereunder  in  accordance  with the  provisions  of  Article  VI.  Such  enforcement,  including,  without
limitation,  the legal  prosecution of claims and the pursuit of other appropriate  remedies,  shall be in
such form and  carried  out to such an extent and at such time as the Master  Servicer,  in its good faith
business  judgment,  would  require were it the owner of the related  Mortgage  Loans;  provided  that the
Master  Servicer  shall not be required to prosecute or defend any legal action  except to the extent that
the Master Servicer shall have received  reasonable  indemnity for its costs and expenses in pursuing such
action.

                  (c)      The Master  Servicer  shall be entitled to be  reimbursed  by the  Servicer (or
from  amounts on deposit in the Note  Account if the  Servicer  does not timely  fulfill  its  obligations
hereunder) for all Servicing Transfer Costs (or if the predecessor  Servicer is the Master Servicer,  from
the Servicer  immediately  preceding the Master Servicer),  including without  limitation,  any reasonable
out-of-pocket  or third party costs or expenses  associated  with the complete  transfer of all  servicing
data and the  completion,  correction or  manipulation  of such  servicing  data as may be required by the
Master  Servicer to correct any errors or  insufficiencies  in the  servicing  data or otherwise to enable
the Master  Servicer  to service the  Mortgage  Loans  properly  and  effectively,  upon  presentation  of
reasonable documentation of such costs and expenses.

                  (d)      The Master  Servicer  shall require the Servicer to comply with the  remittance
requirements and other obligations set forth in this Agreement.

                  (e)      If the  Master  Servicer  acts  as  successor  Servicer,  it  will  not  assume
liability for the representations and warranties of the terminated Servicer.

                  (f)      The  Master  Servicer  shall not be  liable  for any acts or  omissions  of the
Servicer.

                  Section 3.32.     Fidelity Bond.

                  The Master  Servicer,  at its expense,  shall maintain in effect a blanket fidelity bond
and an  errors  and  omissions  insurance  policy,  affording  coverage  with  respect  to all  directors,
officers,  employees and other Persons acting on such Master  Servicer's  behalf,  and covering errors and
omissions in the  performance of the Master  Servicer's  obligations  hereunder.  The errors and omissions
insurance  policy  and the  fidelity  bond  shall be in such  form and  amount  generally  acceptable  for
entities  serving as master  servicers  or  trustees.  Upon  reasonable  request of the  Depositor  or the
Sponsor,  the Master Servicer shall provide to the Depositor or the Sponsor  evidence of such insurance or
fidelity bond.

                  Section 3.33.     Power to Act; Procedures.

                  The Master  Servicer  shall master  service the Mortgage Loans and shall have full power
and  authority to do any and all things that it may deem  necessary or  desirable in  connection  with the
master  servicing and  administration  of the Mortgage  Loans,  including but not limited to the power and
authority (i) to execute and deliver,  on behalf of the Noteholders and the Indenture  Trustee,  customary
consents or waivers and other  instruments  and  documents,  (ii) to consent to transfers of any Mortgaged
Property and  assumptions  of the Mortgage  Notes and related  Mortgages,  (iii) to collect any  Insurance
Proceeds  and  Liquidation  Proceeds,  and  (iv) to  effectuate  foreclosure  or other  conversion  of the
ownership of the Mortgaged  Property.  The  Indenture  Trustee  shall  furnish the Master  Servicer,  upon
written  request  from a Master  Servicing  Officer,  with any powers of attorney (in form  delivered  and
acceptable  to the  Indenture  Trustee)  empowering  the Master  Servicer  or the  Servicer to execute and
deliver  instruments of satisfaction or cancellation,  or of partial or full release or discharge,  and to
foreclose  upon or  otherwise  liquidate  Mortgaged  Property,  and to appeal,  prosecute or defend in any
court  action  relating  to the  Mortgage  Loans  or the  Mortgaged  Property,  in  accordance  with  this
Agreement,  and the  Indenture  Trustee  shall  execute and deliver  such other  documents,  as the Master
Servicer or the Servicer may request,  to enable the Master  Servicer to master service and administer the
Mortgage  Loans and carry out its  duties  hereunder,  in each case in  accordance  with  Accepted  Master
Servicing  Practices  (and the Indenture  Trustee shall have no liability for misuse of any such powers of
attorney by the Master  Servicer or the Servicer and shall be  indemnified  by the Master  Servicer or the
Servicer,  as  applicable,  for any cost,  liability  or  expense  incurred  by the  Indenture  Trustee in
connection  with such  Person's use or misuse of any such power of  attorney).  If the Master  Servicer or
the  Indenture  Trustee has been  advised  that it is likely that the laws of the state in which action is
to be taken  prohibit  such  action if taken in the name of the  Indenture  Trustee or that the  Indenture
Trustee would be adversely  affected  under the "doing  business" or tax laws of such state if such action
is taken in its name, the Master  Servicer shall join with the Indenture  Trustee in the  appointment of a
co-trustee  pursuant to Section 6.10 of the Indenture.  In the  performance of its duties  hereunder,  the
Master  Servicer shall be an independent  contractor and shall not,  except in those instances where it is
taking action in the name of the Indenture Trustee, be deemed to be the agent of the Indenture Trustee.

                  Section 3.34.     Due-on-Sale Clauses; Assumption Agreements.

                  To the  extent  Mortgage  Loans  contain  enforceable  due-on-sale  clauses,  the Master
Servicer shall cause the Servicer to enforce such clauses in accordance with this Agreement.

                  Section 3.35.     Documents,  Records and Funds in Possession of Master  Servicer To Be
                                    Held for Trustee.

                  (a)      The Master  Servicer shall transmit to the Indenture  Trustee or Custodian such
documents  and  instruments  coming into the  possession  of the Master  Servicer from time to time as are
required by the terms hereof to be delivered to the  Indenture  Trustee or Custodian.  Any funds  received
by the Master  Servicer in respect of any Mortgage  Loan or which  otherwise  are  collected by the Master
Servicer as Liquidation  Proceeds or Insurance  Proceeds in respect of any Mortgage Loan shall be remitted
to the  Securities  Administrator  for  deposit in the Note  Account.  The  Master  Servicer  shall,  and,
subject  to  Section  3.11,  shall  enforce  the  obligations  of  the  Servicer  to,  provide  access  to
information  and  documentation  regarding  the Mortgage  Loans to the Indenture  Trustee,  its agents and
accountants  at any time upon  reasonable  request and during normal  business  hours,  and to Noteholders
that are savings and loan associations,  banks or insurance  companies,  the Office of Thrift Supervision,
the FDIC and the  supervisory  agents and  examiners  of such Office and  Corporation  or examiners of any
other  federal  or  state  banking  or  insurance  regulatory  authority  if  so  required  by  applicable
regulations  of the  Office  of  Thrift  Supervision  or other  regulatory  authority,  such  access to be
afforded  without charge but only upon  reasonable  request in writing and during normal business hours at
the offices of the Master  Servicer  designated  by it. In fulfilling  such a request the Master  Servicer
shall not be responsible for determining the sufficiency of such information.

                  (b)      All funds  collected or held by, or under the control of, the Master  Servicer,
in respect of any Mortgage Loans,  whether from the collection of principal and interest  payments or from
Liquidation  Proceeds  or  Insurance  Proceeds,  shall be  remitted to the  Securities  Administrator  for
deposit in the Note Account.

                  Section 3.36.     Possession of Certain Insurance Policies and Documents.

                  The  Custodian,  shall retain  possession  and custody of the  originals  (to the extent
available) of any primary  mortgage  insurance  policies,  or certificate of insurance if applicable,  and
any Notes of  renewal  as to the  foregoing  as may be issued  from time to time as  contemplated  by this
Agreement.  Until all  amounts  payable  in  respect  of the  Notes  has been paid in full and the  Master
Servicer and the Servicer have otherwise  fulfilled  their  respective  obligations  under this Agreement,
the Custodian  shall also retain  possession  and custody of each  Mortgage  File in  accordance  with and
subject to the terms and conditions of this  Agreement.  The Master  Servicer  shall  promptly  deliver or
cause to be  delivered  to the  Custodian,  upon the  execution  or receipt  thereof the  originals of any
primary  mortgage  insurance  policies,  any Notes of renewal,  and such other  documents  or  instruments
related to the Mortgage Loans that come into the possession of the Master Servicer from time to time.

                  Section 3.37.     Compensation for the Master Servicer.

                  As  compensation  for the  activities  of the  Master  Servicer  hereunder,  the  Master
Servicer  shall be entitled to the Master  Servicing Fee,  payable to the Master  Servicer on each Payment
Date (with respect to the calendar  month that  immediately  preceded the month of such Payment Date) from
funds in the Note  Account.  The Master  Servicing  Fee  payable to the Master  Servicer in respect of any
Payment Date shall be reduced in accordance  with Section 3.38.  The Master  Servicer shall be required to
pay all expenses  incurred by it in connection with its activities  hereunder and shall not be entitled to
reimbursement therefor except as provided in this Agreement.

                  Section 3.38.     Obligation of the Master  Servicer in Respect of Prepayment  Interest
                                    Shortfalls.

                  In the event that the  Servicer  fails to perform on any  Servicer  Remittance  Date its
obligations  pursuant to Section 3.24, the Master  Servicer  shall remit to the  Securities  Administrator
not later than the Payment Date an amount  equal to the lesser of (i) the  aggregate  amounts  required to
be paid by the  Servicer  with  respect  to  Prepayment  Interest  Shortfalls  attributable  to  Principal
Prepayments on the related  Mortgage  Loans for the related  Payment Date, and not so paid by the Servicer
and (ii) the Master Servicing Fee for such Payment Date, without reimbursement therefor.

                  Section 3.39.     Merger or Consolidation.

                  Any Person into which the Master Servicer may be merged or  consolidated,  or any Person
resulting  from any  merger,  conversion,  other  change  in form or  consolidation  to which  the  Master
Servicer shall be a party, or any Person  succeeding to the business of the Master Servicer,  shall be the
successor to the Master  Servicer  hereunder,  without the execution or filing of any paper or any further
act on the part of any of the parties hereto, anything herein to the contrary  notwithstanding;  provided,
however,  that the successor or resulting  Person to the Master  Servicer or its  Affiliate  whose primary
business  is the  servicing  of  conventional  residential  mortgage  loans  shall be a Person  that is an
Approved Servicer.

                  Section 3.40.     Resignation of Master Servicer.

                  Except as  otherwise  provided in Sections  3.39 and 3.41  hereof,  the Master  Servicer
shall not resign  from the  obligations  and  duties  hereby  imposed  on it unless the Master  Servicer's
duties hereunder are no longer  permissible  under applicable law or are in material conflict by reason of
applicable  law with any other  activities  carried on by it and cannot be cured.  Any such  determination
permitting  the  resignation  of the Master  Servicer  shall be  evidenced  by an  independent  Opinion of
Counsel to such effect delivered to the Issuer, the Depositor,  the Seller and the Indenture  Trustee.  No
such  resignation  shall become effective until the Indenture  Trustee shall have assumed,  or a Successor
Master  Servicer  shall  have been  appointed  by the  Sponsor  or the  Indenture  Trustee  and until such
successor  shall  have  assumed,  the  Master  Servicer's  responsibilities  and  obligations  under  this
Agreement.  Notice of such  resignation  shall be given  promptly by the Master  Servicer to the Indenture
Trustee.

                  If, at any time,  the Master  Servicer  resigns under this Section 3.40, or transfers or
assigns its rights and  obligations  under  Section  4.16,  or is removed as Master  Servicer  pursuant to
Section  6.07,  then at such time Wells  Fargo  Bank,  N.A.  also shall  resign  (and shall be entitled to
resign) as  Securities  Administrator,  Custodian,  Paying Agent and Note  Registrar.  In such event,  the
obligations  of each such party  shall be  assumed  by the  Indenture  Trustee  or such  Successor  Master
Servicer  appointed by the  Indenture  Trustee  (subject to the  provisions  of Section  6.07);  provided,
however,  the Indenture  Trustee shall have the same right to appoint,  or petition a court to appoint,  a
successor  Securities  Administrator,  Paying  Agent or Note  Registrar as it has pursuant to Section 6.07
with respect to a successor Master Servicer.

                  Section 3.41.     Assignment or Delegation of Duties by the Master Servicer.

                  Except as expressly  provided  herein,  the Master Servicer shall not assign or transfer
any of its rights,  benefits or privileges  hereunder to any other Person,  or delegate to or  subcontract
with, or authorize or appoint any other Person to perform any of the duties,  covenants or  obligations to
be performed by the Master  Servicer  hereunder;  provided,  however,  that the Master Servicer shall have
the right with the prior  written  consent of the Indenture  Trustee and the Seller  (which  consent shall
not be  unreasonably  withheld),  and upon  delivery to the  Indenture  Trustee and the Seller of a letter
from each Rating  Agency to the effect that such action  shall not result in a  downgrading  of the Notes,
to delegate or assign to or subcontract  with or authorize or appoint any qualified  Person to perform and
carry out any duties,  covenants or  obligations  to be performed  and carried out by the Master  Servicer
hereunder.  Notice of such  permitted  assignment  shall be given  promptly by the Master  Servicer to the
Seller  and the  Indenture  Trustee.  If,  pursuant  to any  provision  hereof,  the  duties of the Master
Servicer are transferred to a Successor  Master  Servicer,  the entire amount of the Master Servicing Fees
and other  compensation  payable to the Master  Servicer  pursuant  hereto shall  thereafter be payable to
such Successor  Master  Servicer.  Such Successor Master Servicer shall also pay the fees of the Indenture
Trustee and the Securities Administrator, as provided herein.

                                                ARTICLE IV

                           REMITTANCE REPORTS; ADVANCES; EXCHANGE ACT REPORTING

                  Section 4.01.     Remittance Reports and Advances.

                  (a)      On the 10th  calendar  day of each month,  the  Servicer  shall  deliver to the
Master  Servicer  and the Sponsor by telecopy or  electronic  mail (or by such other means as the Servicer
and the  Master  Servicer  may agree from time to time) a  Remittance  Report in the  format  attached  as
Exhibit J, Exhibit K and Exhibit L with  respect to the related  Payment  Date.  Not later than the second
Business Day following  each  Determination  Date,  the Servicer shall deliver or cause to be delivered to
the Master Servicer in addition to the information  provided in the Remittance  Report,  information  with
respect to the Principal  Prepayments  in full from the portion of the  Prepayment  Period from the 1st to
the 15th of each  calendar  month and such other  information  reasonably  available to it with respect to
the Mortgage Loans as the Master  Servicer may reasonably  require to perform the  calculations  necessary
to make the  payments  contemplated  by Section 3.05 of the  Indenture  and to prepare the  statements  to
Noteholders  contemplated  by Section 3.26 of the Indenture.  The Master Servicer shall not be responsible
to recompute, recalculate or verify any information provided to it by the Servicer.

                  (b)      The amount of Advances to be made by the  Servicer  for any Payment  Date shall
equal,  subject to Section  4.01(d),  the sum of (i) the aggregate  amount of Monthly Payments (net of the
related  Servicing  Fee),  due during the  related  Due Period in  respect of the  Mortgage  Loans,  which
Monthly  Payments  were  delinquent  on a  contractual  basis as of the Close of  Business  on the related
Determination  Date and (ii) with respect to each REO Property,  which REO Property was acquired during or
prior to the related Due Period and as to which REO Property an REO  Disposition  did not occur during the
related  Due Period,  an amount  equal to the  excess,  if any,  of the REO  Imputed  Interest on such REO
Property  for the  most  recently  ended  calendar  month,  over the net  income  from  such REO  Property
transferred to the Note Account pursuant to Section 3.23 for payment on such Payment Date.

                  On or before 2:00 p.m.  New York time on the  Servicer  Remittance  Date,  the  Servicer
shall  remit in  immediately  available  funds to the  Securities  Administrator  for  deposit in the Note
Account  an amount  equal to the  aggregate  amount of  Advances,  if any,  to be made in  respect  of the
Mortgage  Loans and REO  Properties  for the  related  Payment  Date either (i) from its own funds or (ii)
from the  Collection  Account,  to the extent of funds held  therein for future  payment (in which case it
will cause to be made an  appropriate  entry in the records of the  Collection  Account  that amounts held
for future  payment have been,  as permitted  by this Section  4.01,  used by the Servicer in discharge of
any such Advance) or (iii) in the form of any  combination  of (i) and (ii)  aggregating  the total amount
of  Advances  to be made by the  Servicer  with  respect to the  Mortgage  Loans and REO  Properties.  Any
amounts held for future  payment  used by the  Servicer to make an Advance as  permitted in the  preceding
sentence  shall be  appropriately  reflected  in the  Servicer's  records and  replaced by the Servicer by
deposit in the  Collection  Account on or before any future  Servicer  Remittance  Date to the extent that
the Available  Funds for the related  Payment Date  (determined  without  regard to Advances to be made on
the  Servicer  Remittance  Date) shall be less than the total  amount that would be paid to the Classes of
Noteholders  pursuant to Section  3.05 of the  Indenture  on such  Payment  Date if such  amounts held for
future payments had not been so used to make Advances.  The Securities  Administrator  will provide notice
to the  Servicer by telecopy by the Close of Business on any  Servicer  Remittance  Date in the event that
the  amount  remitted  by the  Servicer  to the  Securities  Administrator  on such  date is less than the
Advances  required to be made by the Servicer for the related  Payment  Date,  as set forth in the related
Remittance Report.

                  (c)      The   obligation   of  the  Servicer  to  make  such   Advances  is  mandatory,
notwithstanding  any other provision of this Agreement but subject to (d) below,  and, with respect to any
Mortgage Loan,  shall continue until the Mortgage Loan is paid in full or until all  Liquidation  Proceeds
thereon have been recovered, or a Final Recovery Determination has been made thereon.

                  (d)      Notwithstanding  anything  herein to the  contrary,  no  Advance  or  Servicing
Advance  shall be required to be made  hereunder  by the  Servicer if such  Advance or  Servicing  Advance
would, if made,  constitute a Nonrecoverable  Advance.  The determination by the Servicer that it has made
a Nonrecoverable  Advance or that any proposed Advance or Servicing  Advance,  if made, would constitute a
Nonrecoverable  Advance,  shall be evidenced by an Officers'  Certificate of the Servicer delivered to the
Sponsor and the Master  Servicer.  Furthermore,  the Servicer  shall not be required to advance Relief Act
Interest Shortfalls.

                  (e)      If the  Servicer  fails  to  remit  any  Monthly  Advance  required  to be made
pursuant to this Section,  the Master  Servicer  shall make, or the Successor  Servicer  shall make,  such
Advance.  If the Master Servicer  determines that a Monthly Advance is required,  it shall on the Business
Day  preceding  the related  Payment  Date  immediately  following  such  Determination  Date remit to the
Securities  Administrator  from its own funds (or funds advanced by the  applicable  Servicer) for deposit
in the Note Account  immediately  available funds in an amount equal to such Monthly  Advance.  The Master
Servicer  shall  be  entitled  to be  reimbursed  for all  Monthly  Advances  made by it.  Notwithstanding
anything to the contrary herein,  in the event the Master Servicer  determines in its reasonable  judgment
that a Monthly Advance is a  Nonrecoverable  Advance,  the Master Servicer shall be under no obligation to
make such Monthly  Advance.  If the Master Servicer  determines that a Monthly Advance is a Nonrecoverable
Advance,  it shall,  on or prior to the related  Payment  Date,  deliver an Officer's  Certificate  to the
Indenture Trustee and the Securities Administrator to such effect.

                  Section 4.02.     Exchange Act Reporting.

                  (a)      (i)  (A)  Within  15  days  after  each   Distribution   Date,  the  Securities
Administrator  shall,  in accordance  with  industry  standards,  prepare and, in accordance  with Section
(a)(i)(C)  below,  file with the  Commission  via the  Electronic  Data  Gathering  and  Retrieval  System
("EDGAR"),  a Distribution Report on Form 10-D, signed by the Master Servicer,  with a copy of the Monthly
Statement  to  be  furnished  by  the  Securities   Administrator  to  the   Certificateholders  for  such
Distribution  Date;  provided that, the  Securities  Administrator  shall have received no later than five
(5) calendar days after the related  Distribution  Date,  all  information  required to be provided to the
Securities  Administrator  as described in clause  (a)(iv) below.  Any  disclosure  that is in addition to
the  Monthly  Statement  and  that is  required  to be  included  on Form  10-D  ("Additional  Form  10-D
Disclosure") shall be, pursuant to the paragraph  immediately below,  reported by the parties set forth on
Exhibit I to the Securities  Administrator  and the Depositor and approved for inclusion by the Depositor,
and the  Securities  Administrator  will have no duty or liability for any failure  hereunder to determine
or prepare any Additional  Form 10-D  Disclosure  absent such reporting  (other than in the case where the
Securities Administrator is the reporting party as set forth in Exhibit I) and approval.

                  (B)      Within five (5)  calendar  days after the related  Distribution  Date,  (i) the
parties set forth in Exhibit I shall be required to provide,  pursuant to Section  4.02(a)(iv)  below,  to
the Securities  Administrator and the Depositor,  to the extent known by a responsible officer thereof, in
EDGAR-compatible  format,  or in such other form as otherwise agreed upon by the Securities  Administrator
and the  Depositor and such party,  the form and  substance of any  Additional  Form 10-D  Disclosure,  if
applicable,  and (ii) the Depositor  will approve,  as to form and substance,  or disapprove,  as the case
may be, the inclusion of the  Additional  Form 10-D  Disclosure on Form 10-D.  The Issuing Entity shall be
responsible for any reasonable fees and expenses  assessed or incurred by the Securities  Administrator in
connection with including any Additional Form 10-D Disclosure on Form 10-D pursuant to this Section.

                  (C)      After  preparing  the Form 10-D,  the  Securities  Administrator  shall forward
electronically  a copy of the Form 10-D to the Depositor,  the Sponsor and the Master Servicer for review.
Within two Business  Days after  receipt of such copy,  but no later than the 12th  calendar day after the
Distribution Date (provided that, the Securities  Administrator  forwards a copy of the Form 10-D no later
than the  10th  calendar  after  the  Distribution  Date),  the  Depositor  shall  notify  the  Securities
Administrator  in writing  (which may be furnished  electronically)  of any changes to or approval of such
Form 10-D.  In the absence of receipt of any written  changes or approval,  the  Securities  Administrator
shall be  entitled  to assume that such Form 10-D is in final form and the  Securities  Administrator  may
proceed  with the  execution  and filing of the Form 10-D.  No later than the 13th  calendar day after the
related  Distribution  Date, a duly  authorized  officer of the Master  Servicer  shall sign the Form 10-D
and, in the case where the Master Servicer and the Securities  Administrator  are not  affiliated,  return
an  electronic  or fax copy of such  signed Form 10-D (with an  original  executed  hard copy to follow by
overnight  mail)  to the  Securities  Administrator.  If a Form  10-D  cannot  be  filed  on  time or if a
previously filed Form 10-D needs to be amended,  the Securities  Administrator shall follow the procedures
set forth in Section  3.17(a)(v)(B).  Promptly  (but no later than one (1) Business Day) after filing with
the Commission,  the Securities  Administrator  shall make available on its internet website identified in
Section  7.04 of the  Indenture,  a  final  executed  copy  of each  Form  10-D  filed  by the  Securities
Administrator.  The signing  party at the Master  Servicer can be contacted as set forth in Section  7.04.
Form 10-D  requires  the  registrant  to indicate  (by  checking  "yes" or "no") that it (1) has filed all
reports  required to be filed by Section 13 or 15(d) of the  Exchange  Act during the  preceding 12 months
(or for such  shorter  period that the  registrant  was required to file such  reports),  and (2) has been
subject to such filing  requirements  for the past 90 days.  The  Depositor  shall  notify the  Securities
Administrator in writing,  no later than the fifth calendar day after the related  Distribution  Date with
respect  to the  filing of a report on Form  10-D,  if the  answer to the  questions  should be "no".  The
Securities  Administrator  shall be entitled to rely on the representations in Section 2.05(ix) and in any
such  notice in  preparing,  executing  and/or  filing any such  report.  The  parties  to this  Agreement
acknowledge  that the  performance  by the  Master  Servicer  and the  Securities  Administrator  of their
respective  duties under  Sections  4.02(a)(i)  and (v) related to the timely  preparation,  execution and
filing of Form 10-D is contingent  upon such parties  strictly  observing all applicable  deadlines in the
performance  of their  duties  under  such  Sections.  Neither  the  Master  Servicer  nor the  Securities
Administrator  shall have any  liability  for any loss,  expense,  damage,  claim  arising  out of or with
respect to any  failure  to  properly  prepare,  execute  and/or  timely  file such Form 10-D,  where such
failure  results from a party's  failure to deliver,  on a timely  basis,  any  information  from any such
party  needed to  prepare,  arrange  for  execution  or file such Form 10-D,  not  resulting  from its own
negligence, bad faith or willful misconduct.

                  (ii)     (A) Within four (4) Business Days after the  occurrence  of an event  requiring
disclosure  on Form 8-K (each such event,  a  "Reportable  Event"),  the  Securities  Administrator  shall
prepare and, at the  direction of the  Depositor,  file on behalf of the Trust,  any Form 8-K, as required
by the Exchange Act;  provided that,  the  Depositor,  upon receipt from the Sponsor of the relevant final
Basic  Documents  within 14 days after the Closing  Date,  shall file the initial  Form 8-K in  connection
with the issuance of the Notes.  Any  disclosure or information  related to a Reportable  Event or that is
otherwise  required to be included on Form 8-K ("Form 8-K Disclosure  Information")  shall be, pursuant to
the  paragraph  immediately  below,  reported  by the  parties  set forth on  Exhibit I to the  Securities
Administrator  and the  Depositor  and  approved  for  inclusion  by the  Depositor,  and  the  Securities
Administrator  will have no duty or liability  for any failure  hereunder to determine or prepare any Form
8-K  Disclosure  Information  absent  such  reporting  (other  than  in  the  case  where  the  Securities
Administrator is the reporting party as set forth in Exhibit I) and approval.

                  (B)      For  so  long  as  the  Trust  is  subject  to  the  Exchange   Act   reporting
requirements,  no later than the close of  business  on the 2nd  Business  Day after the  occurrence  of a
Reportable  Event  (i) the  parties  set  forth  in  Exhibit  I shall  be  required  pursuant  to  Section
4.02(a)(iv) below to provide to the Securities  Administrator and the Depositor,  to the extent known by a
responsible officer thereof,  in  EDGAR-compatible  format, or in such other form as otherwise agreed upon
by the Securities  Administrator  and the Depositor and such party, the form and substance of any Form 8-K
Disclosure  Information,  if applicable,  and (ii) the Depositor shall approve,  as to form and substance,
or disapprove,  as the case may be, the inclusion of the Form 8-K Disclosure  Information on Form 8-K. The
Issuing  Entity shall be  responsible  for any  reasonable  fees and expenses  assessed or incurred by the
Securities  Administrator  in connection  with including any Form 8-K  Disclosure  Information on Form 8-K
pursuant to this Section.

                  (C)      After  preparing  the Form 8-K,  the  Securities  Administrator  shall  forward
electronically  a copy of the Form 8-K to the  Depositor  and the Master  Servicer  for  review.  No later
than the close of business New York City time on the 3rd Business Day after the  Reportable  Event,  or in
the case where the Master Servicer and Securities  Administrator  are  affiliated,  no later than noon New
York City time on the 4th  Business  Day after the  Reportable  Event,  a duly  authorized  officer of the
Master  Servicer  shall sign the Form 8-K and, in the case where the Master  Servicer  and the  Securities
Administrator  are not  affiliated,  return an  electronic  or fax copy of such  signed  Form 8-K (with an
original executed hard copy to follow by overnight mail) to the Securities  Administrator.  Promptly,  but
no later than the close of business on the 3rd Business Day after the  Reportable  Event  (provided  that,
the  Securities  Administrator  forwards  a copy of the Form 8-K no later  than  noon New York time on the
third Business Day after the Reportable  Event),  the Depositor shall notify the Securities  Administrator
in writing  (which may be  furnished  electronically)  of any  changes to or approval of such Form 8-K. In
the  absence  of  receipt of any  written  changes or  approval,  the  Securities  Administrator  shall be
entitled to assume that such Form 8-K is in final form and the Securities  Administrator  may proceed with
the  execution  and  filing of the Form  8-K.  If a Form 8-K  cannot  be filed on time or if a  previously
filed Form 8-K needs to be amended,  the  Securities  Administrator  shall follow the procedures set forth
in  Section  4.02(a)(v)(B).  Promptly  (but no later than one (1)  Business  Day)  after  filing  with the
Commission,  the Securities  Administrator  shall, make available on its internet website a final executed
copy of each Form 8-K filed by the  Securities  Administrator.  The signing  party at the Master  Servicer
can be  contacted  as set forth in Section  7.03.  The  parties  to this  Agreement  acknowledge  that the
performance by Master  Servicer and the Securities  Administrator  of their  respective  duties under this
Section  4.02(a)(ii)  related to the timely  preparation,  execution  and filing of Form 8-K is contingent
upon such parties  strictly  observing all applicable  deadlines in the  performance of their duties under
this Section  4.02(a)(ii).  Neither the Master  Servicer nor the Securities  Administrator  shall have any
liability for any loss, expense,  damage,  claim arising out of or with respect to any failure to properly
prepare,  execute and/or timely file such Form 8-K, where such failure  results from a party's  failure to
deliver,  on a timely basis, any information  from such party needed to prepare,  arrange for execution or
file such Form 8-K, not resulting from its own negligence, bad faith or willful misconduct.

                  (iii)    (A)  Within  90 days  after  the end of each  fiscal  year of the Trust or such
earlier  date as may be required by the Exchange Act (the "10-K  Filing  Deadline")  (it being  understood
that the fiscal year for the Trust ends on  December  31st of each year),  commencing  in March 2008,  the
Securities  Administrator  shall  prepare  and  file on  behalf  of the  Trust a Form  10-K,  in form  and
substance as required by the Exchange  Act.  Each such Form 10-K shall  include the  following  items,  in
each case to the extent they have been  delivered to the  Securities  Administrator  within the applicable
time  frames set forth in this  Agreement,  (I) an annual  compliance  statement  for each  Servicer,  the
Master Servicer,  the Securities  Administrator  and any subservicer or subcontractor,  as applicable,  as
described  under Section 3.20,  (II)(A) the annual  reports on  assessment  of compliance  with  Servicing
Criteria for each Servicer, the Master Servicer,  each subservicer and subcontractor  participating in the
servicing  function,  the Securities  Administrator  and the Custodians,  as described under Section 3.21,
and (B) if any such report on assessment of compliance  with Servicing  Criteria  described  under Section
3.21  identifies  any  material  instance  of  noncompliance,  disclosure  identifying  such  instance  of
noncompliance,  or if any such report on assessment of compliance with Servicing  Criteria described under
Section  3.21 is not  included  as an  exhibit  to such Form  10-K,  disclosure  that  such  report is not
included and an explanation  why such report is not included,  (III)(A) the registered  public  accounting
firm  attestation  report for each  Servicer,  the Master  Servicer,  the Securities  Administrator,  each
subservicer,  each subcontractor,  as applicable, and the Custodians, as described under Section 3.21, and
(B) if any registered  public  accounting firm attestation  report described under Section 3.21 identifies
any material instance of noncompliance,  disclosure identifying such instance of noncompliance,  or if any
such  registered  public  accounting  firm  attestation  report is not included as an exhibit to such Form
10-K,  disclosure  that such report is not included and an  explanation  why such report is not  included,
and (IV) a  Sarbanes-Oxley  Certification  as  described  in Section  4.02  (a)(iii)(D)  below  (provided,
however,  that the Securities  Administrator,  at its  discretion,  may omit from the Form 10-K any annual
compliance  statement,  assessment of compliance  or  attestation  report that is not required to be filed
with such Form 10-K pursuant to Regulation  AB). Any  disclosure or information in addition to (I) through
(IV) above that is  required to be included on Form 10-K  ("Additional  Form 10-K  Disclosure")  shall be,
pursuant  to the  paragraph  immediately  below,  reported  by the  parties  set forth on Exhibit I to the
Securities  Administrator  and  the  Depositor  and  approved  for  inclusion  by the  Depositor,  and the
Securities  Administrator  will have no duty or  liability  for any  failure  hereunder  to  determine  or
prepare  any  Additional  Form 10-K  Disclosure  absent such  reporting  (other than in the case where the
Securities Administrator is the reporting party as set forth in Exhibit I) and approval.

                  (B)      No later  than  March  15th of each  year  that the  Trust  is  subject  to the
Exchange Act reporting  requirements,  commencing in 2008, (i) the parties set forth in Exhibit I shall be
required  to provide  pursuant  to  Section  4.02(a)(iv)  below to the  Securities  Administrator  and the
Depositor,  to the extent known by a responsible officer thereof,  in EDGAR-compatible  format, or in such
other form as otherwise  agreed upon by the  Securities  Administrator  and the  Depositor and such party,
the form and substance of any  Additional  Form 10-K  Disclosure,  if  applicable,  and (ii) the Depositor
will  approve,  as to form  and  substance,  or  disapprove,  as the  case may be,  the  inclusion  of the
Additional  Form  10-K  Disclosure  on  Form  10-K.  The  Issuing  Entity  shall  be  responsible  for any
reasonable  fees and expenses  assessed or incurred by the  Securities  Administrator  in connection  with
including any Additional Form 10-K Disclosure on Form 10-K pursuant to this Section.

                  (C)      After  preparing  the Form 10-K,  the  Securities  Administrator  shall forward
electronically  a copy of the Form 10-K to the  Depositor  (only in the case where such Form 10-K includes
Additional  Form 10-K  Disclosure and otherwise if requested by the Depositor) and the Master Servicer for
review.  Within three  Business  Days after receipt of such copy,  but no later than March 25th  (provided
that, the Securities  Administrator  forwards a copy of the Form 10-K no later than the third Business Day
prior to March 25th),  the Depositor  shall notify the Securities  Administrator  in writing (which may be
furnished  electronically)  of any changes to or approval of such Form 10-K.  In the absence of receipt of
any written changes or approval,  the Securities  Administrator shall be entitled to assume that such Form
10-K is in final form and the  Securities  Administrator  may proceed with the execution and filing of the
Form 10-K.  No later than the close of business  Eastern  Standard  time on the 4th  Business Day prior to
the 10-K Filing  Deadline,  an officer of the Master Servicer in charge of the master  servicing  function
shall sign the Form 10-K and, in the case where the Master Servicer and the Securities  Administrator  are
unaffiliated,  return an electronic  or fax copy of such signed Form 10-K (with an original  executed hard
copy to follow by  overnight  mail) to the  Securities  Administrator.  If a Form 10-K  cannot be filed on
time or if a previously  filed Form 10-K needs to be amended,  the  Securities  Administrator  will follow
the  procedures  set forth in Section  4.02(a)(v)(B).  Promptly  (but no later than one (1) Business  Day)
after  filing with the  Commission,  the  Securities  Administrator  shall make  available on its internet
website a final  executed  copy of each Form  10-K  filed by the  Securities  Administrator.  The  signing
party at the Master  Servicer  can be  contacted  as set forth in Section  7.03.  Form 10-K  requires  the
registrant  to  indicate  (by  checking  "yes" or "no") that it (1) has filed all  reports  required to be
filed by Section 13 or 15(d) of the  Exchange  Act during  the  preceding  12 months (or for such  shorter
period that the  registrant  was required to file such  reports),  and (2) has been subject to such filing
requirements  for the past 90 days. The Depositor  shall notify the Securities  Administrator  in writing,
no later than March 15th of each year in which the Trust is subject to the  requirements  of the  Exchange
Act with  respect to the filing of a report on Form 10-K,  if the answer to the  question  should be "no".
The  Securities  Administrator  shall be  entitled  to rely on such  response  and in any such  notice  in
preparing,  executing  and/or filing any such report.  The parties to this Agreement  acknowledge that the
performance  by the Master  Servicer and the Securities  Administrator  of their  respective  duties under
Sections  4.02(a)(iv)  and (v)  related to the timely  preparation,  execution  and filing of Form 10-K is
contingent  upon such parties  strictly  observing all  applicable  deadlines in the  performance of their
duties  under such  Sections  and  Sections  3.20and  Section  3.21.  Neither the Master  Servicer nor the
Securities  Administrator shall have any liability for any loss, expense,  damage, claim arising out of or
with respect to any failure to properly  prepare,  execute  and/or timely file such Form 10-K,  where such
failure  results from the Master  Servicer's  or the  Securities  Administrator's  inability or failure to
receive,  on a timely basis,  any information  from any other party hereto needed to prepare,  arrange for
execution or file such Form 10-K, not resulting from its own negligence, bad faith or willful misconduct.

                  (D)      Each  Form  10-K  shall  include  a   certification   (the   "Sarbanes-Oxley
Certification")  required  to be included  therewith  pursuant  to the  Sarbanes-Oxley  Act which shall be
signed by the  Certifying  Person and delivered to the Securities  Administrator  no later than March 15th
of each year in which the  Trust is  subject  to the  reporting  requirements  of the  Exchange  Act.  The
Master Servicer shall cause the Servicer,  and any subservicer or subcontractor  engaged by it to, provide
to the Person who signs the  Sarbanes-Oxley  Certification  (the  "Certifying  Person"),  by March 10th of
each year in which the Trust is subject to the reporting  requirements  of the Exchange Act (or such other
date specified in the related  Servicing  Agreement) and otherwise within a reasonable period of time upon
request,  a  certification  (each, a "Back-Up  Certification"),  in the form attached hereto as Exhibit _,
upon which the  Certifying  Person,  the entity for which the  Certifying  Person acts as an officer,  and
such  entity's   officers,   directors  and  Affiliates   (collectively   with  the   Certifying   Person,
"Certification  Parties")  can  reasonably  rely.  In addition,  the Mortgage Loan Seller and, in the case
where the Master Servicer and Securities  Administrator are not affiliated,  the Securities  Administrator
shall  sign a Back-Up  Certification  substantially  in the form of  Exhibit  _;  provided,  however,  the
Mortgage Loan Seller and the  Securities  Administrator  shall not be required to undertake an analysis of
any  accountant's  report  attached as an exhibit to the Form 10-K.  An officer of the Master  Servicer in
charge of the master  servicing  function  shall  serve as the  Certifying  Person on behalf of the Trust.
Such officer of the Certifying Person can be contacted as set forth in Section 7.03.

                  (iv)     With  respect to any  Additional  Form 10-D  Disclosure,  Additional  Form 10-K
Disclosure or any Form 8-K Disclosure  Information  (collectively,  the "Additional  Disclosure") relating
to the Trust Fund, the Securities  Administrator's  obligation to include such  Additional  Information in
the  applicable  Exchange  Act report is subject to receipt from the entity that is indicated in Exhibit I
as the responsible party for providing that information,  if other than the Securities  Administrator,  as
and when required as described in Section  4.02(a)(i)  through  (iii) above.  Such  Additional  Disclosure
shall be  accompanied  by a notice  substantially  in the form of  Exhibit  M. Each of the  Servicer,  the
Master Servicer,  the Seller,  the Securities  Administrator and the Depositor hereby agrees to notify and
provide,  to  the  extent  known  to the  Servicer,  the  Master  Servicer,  the  Seller,  the  Securities
Administrator  and the Depositor all  Additional  Disclosure  relating to the Trust Fund,  with respect to
which such party is indicated in Exhibit I as the responsible  party for providing that  information.  The
Issuing  Entity shall be  responsible  for any  reasonable  fees and expenses  assessed or incurred by the
Securities  Administrator in connection with including any Additional  Disclosure  information pursuant to
this Section.

                  So long as the  Depositor  is subject to the filing  requirements  of the  Exchange  Act
with respect to the Trust Fund, the Indenture  Trustee shall notify the Securities  Administrator  and the
Depositor of any bankruptcy or  receivership  with respect to the Indenture  Trustee or of any proceedings
of the type  described  under Item 1117 of  Regulation AB that have occurred as of the related Due Period,
together  with a  description  thereof,  no later than the date on which such  information  is required of
other  parties  hereto as set forth under this Section  4.02.  In addition,  the  Indenture  Trustee shall
notify the Securities  Administrator  and the Depositor of any affiliations or relationships  that develop
after the Closing Date between the Indenture  Trustee and the  Depositor,  the Seller,  the Servicer,  the
Securities  Administrator,  the Master  Servicer or the Custodian of the type described under Item 1119 of
Regulation  AB,  together with a description  thereof,  no later than March 15 of each year that the Trust
is subject to the Exchange Act reporting  requirements,  commencing in 2008. Should the  identification of
any of the Depositor, the Servicer, the Seller, the Securities  Administrator,  the Master Servicer or the
Custodian change,  the Depositor and the Sponsor,  to the extent known by them, shall each promptly notify
the Indenture Trustee.

                  (v)      (A) On or prior to  January  30th of the  first  year in which  the  Securities
Administrator is able to do so under applicable law, the Securities  Administrator  shall prepare and file
a Form 15 relating to the  automatic  suspension  of  reporting in respect of the Trust under the Exchange
Act.

                  (B)      In the event that the  Securities  Administrator  is unable to timely file with
the  Commission  all or any required  portion of any Form 8-K,  10-D or 10-K  required to be filed by this
Agreement  because  required  disclosure  information  was either not  delivered  to it or delivered to it
after  the  delivery  deadlines  set  forth in this  Agreement  or for any other  reason,  the  Securities
Administrator  shall promptly notify the Depositor and the Master  Servicer.  In the case of Form 10-D and
10-K, the Depositor,  the Master Servicer and the Securities  Administrator shall cooperate to prepare and
file a Form 12b-25 and a 10-DA and 10-KA as  applicable,  pursuant to Rule 12b-25 of the Exchange  Act. In
the  case of Form  8-K,  the  Securities  Administrator  will,  upon  receipt  of all  required  Form  8-K
Disclosure  Information  and upon the approval of the Depositor,  include such  disclosure  information on
the next Form 10-D.  In the event that any  previously  filed Form 8-K,  10-D or 10-K needs to be amended,
and such amendment relates to any Additional  Disclosure,  the Securities  Administrator  shall notify the
Depositor and the parties  affected  thereby and such parties will cooperate to prepare any necessary Form
8-K,  10-DA or 10-KA.  Any Form 15,  Form  12b-25 or any  amendment  to Form  8-K,  10-D or 10-K  shall be
signed by an  appropriate  officer  of the  Master  Servicer.  The  parties  hereto  acknowledge  that the
performance  by the Master  Servicer and the Securities  Administrator  of their  respective  duties under
this  Section  3.15(a)(v)  related  to the  timely  preparation,  execution  and filing of Form 15, a Form
12b-25  or any  amendment  to Form  8-K,  10-D or 10-K is  contingent  upon the  Master  Servicer  and the
Depositor  timely  performing  their  duties  under this  Section.  Neither  the Master  Servicer  nor the
Securities  Administrator shall have any liability for any loss,  expense,  damage or claim arising out of
or with  respect to any failure to properly  prepare,  execute  and/or  timely file any such Form 15, Form
12b-25 or any amendments to Form 8-K, 10-D or 10-K,  where such failure  results from a party's failure to
deliver,  on a timely basis, any information  from such party needed to prepare,  arrange for execution or
file such Form 15, Form 12b-25 or any  amendments  to Form 8-K, 10-D or 10-K,  not resulting  from its own
negligence, bad faith or willful misconduct.

                  The  Depositor  and the  Sponsor  each  agrees to  promptly  furnish  to the  Securities
Administrator,  from  time  to time  upon  reasonable  request,  such  further  information,  reports  and
financial  statements  within its control  and related to this  Agreement  and the  Mortgage  Loans as the
Securities  Administrator  that it reasonably deems appropriate in order to prepare and file all necessary
reports with the Commission.  The Securities  Administrator shall have no responsibility to file any items
other than those specified in this Section 4.02;  provided,  however,  the Securities  Administrator shall
cooperate with the Depositor in connection  with any additional  filings with respect to the Trust Fund as
the  Depositor  deems  necessary  under the Exchange  Act.  Fees and expenses  incurred by the  Securities
Administrator in connection with this Section 4.02 shall not be reimbursable from the Trust Fund.

                  (b)      The Securities  Administrator  shall indemnify and hold harmless the Depositor,
the Indenture Trustee,  the Servicer,  the Seller and the Sponsor and each of its officers,  directors and
affiliates from and against any losses, damages, claims,  penalties,  fines,  forfeitures,  reasonable and
necessary  legal fees and related  costs,  judgments and other costs and expenses  arising out of or based
upon a breach of the Securities  Administrator's  obligations  under  Sections 3.20,  3.21 and 4.02 or the
Securities  Administrator's  negligence,  bad faith or willful  misconduct  in  connection  therewith.  In
addition,  the Securities  Administrator  shall  indemnify and hold harmless the Depositor,  the Indenture
Trustee,  the Servicer,  the Seller and the Sponsor and each of their respective  officers,  directors and
affiliates from and against any losses, damages, claims,  penalties,  fines,  forfeitures,  reasonable and
necessary  legal fees and related  costs,  judgments and other costs and expenses  arising out of or based
upon (i) any untrue  statement or alleged  untrue  statement of any material fact contained in any Back-Up
Certification,  any Annual  Statement of  Compliance,  any  Assessment  of  Compliance  or any  Additional
Disclosure  provided by the  Securities  Administrator  on its behalf or on behalf of any  subservicer  or
subcontractor  engaged  by the  Securities  Administrator  pursuant  to  Section  3.20,  3.21 or 4.02 (the
"Securities  Administrator  Information"),  or (ii) any  omission or alleged  omission to state  therein a
material fact required to be stated therein or necessary to make the statements  therein,  in light of the
circumstances  in which they were made,  not  misleading;  provided,  by way of  clarification,  that this
paragraph shall be construed  solely by reference to the Securities  Administrator  Information and not to
any  other  information  communicated  in  connection  with the  Notes,  without  regard  to  whether  the
Securities  Administrator  Information  or any portion  thereof is presented  together  with or separately
from such other information.

                  The  Depositor  shall  indemnify  and hold harmless the  Securities  Administrator,  the
Servicer,  the Seller, the Indenture Trustee,  the Sponsor, the Custodian and the Master Servicer and each
of its  officers,  directors  and  affiliates  from and against any losses,  damages,  claims,  penalties,
fines,  forfeitures,  reasonable and necessary legal fees and related costs, judgments and other costs and
expenses  arising  out of or based  upon a breach of the  obligations  of the  Depositor  to  deliver  the
information  to be provided by it as set forth in Exhibit I or the  Depositor's  negligence,  bad faith or
willful misconduct in connection therewith.  In addition,  the Depositor shall indemnify and hold harmless
the Master Servicer,  the Servicer,  the Indenture Trustee,  the Seller, the Sponsor,  the Custodian,  the
Securities  Administrator and each of its respective  officers,  directors and affiliates from and against
any losses,  damages,  claims,  penalties,  fines,  forfeitures,  reasonable and necessary  legal fees and
related  costs,  judgments  and other  costs and  expenses  arising  out of or based  upon (i) any  untrue
statement or alleged  untrue  statement  of any  material  fact  contained  in any  Additional  Disclosure
provided by the  Depositor  that is required to be filed  pursuant to this Section  4.02 (the  "Depositor
Information"),  or (ii) any omission or alleged  omission to state  therein a material fact required to be
stated therein or necessary to make the statements  therein,  in light of the  circumstances in which they
were made, not  misleading;  provided,  by way of  clarification,  that this paragraph  shall be construed
solely  by  reference  to the  Depositor  Information  that is  required  to be filed and not to any other
information  communicated  in  connection  with  the  Notes,  without  regard  to  whether  the  Depositor
Information or any portion thereof is presented together with or separately from such other information.

                  The Master  Servicer  shall  indemnify  and hold  harmless the  Indenture  Trustee,  the
Servicer,  the Seller, the Sponsor, and the Depositor and each of its respective  officers,  directors and
affiliates from and against any losses, damages, claims,  penalties,  fines,  forfeitures,  reasonable and
necessary  legal fees and related  costs,  judgments and other costs and expenses  arising out of or based
upon a breach of the  obligations of the Master  Servicer under Sections 3.20, 3.21 and 4.02 or the Master
Servicer's  negligence,  bad faith or willful misconduct in connection therewith.  In addition, the Master
Servicer  shall  indemnify and hold harmless the  Indenture  Trustee,  the  Depositor,  the Servicer,  the
Seller,  the Sponsor,  and each of their  officers,  directors and affiliates from and against any losses,
damages, claims,  penalties,  fines,  forfeitures,  reasonable and necessary legal fees and related costs,
judgments  and other costs and expenses  arising out of or based upon (i) any untrue  statement or alleged
untrue statement of any material fact contained in any Annual  Statement of Compliance,  any Assessment of
Compliance  or any  Additional  Disclosure  provided by the Master  Servicer on its behalf or on behalf of
any subservicer or  subcontractor  engaged by the Master  Servicer  pursuant to Section 3.20, 3.21 or 4.02
(the  "Master  Servicer  Information"),  or (ii) any  omission  or  alleged  omission  to state  therein a
material fact required to be stated therein or necessary to make the statements  therein,  in light of the
circumstances  in which they were made,  not  misleading;  provided,  by way of  clarification,  that this
paragraph shall be construed  solely by reference to the Master Servicer  Information and not to any other
information  communicated  in connection  with the Notes,  without  regard to whether the Master  Servicer
Information or any portion thereof is presented together with or separately from such other information.

                  The Servicer  shall  indemnify  and hold  harmless  the  Securities  Administrator,  the
Master Servicer,  the Securities  Administrator,  the Custodian,  the Indenture Trustee, and the Depositor
and each of its  respective  officers,  directors  and  affiliates  from and against any losses,  damages,
claims, penalties,  fines,  forfeitures,  reasonable and necessary legal fees and related costs, judgments
and other costs and  expenses  arising out of or based upon a breach of the  obligations  of the  Servicer
under  Sections  3.20,  3.21 and 4.02 or the  Servicer's  negligence,  bad faith or willful  misconduct in
connection   therewith.   In  addition,   the  Servicer  shall  indemnify  and  hold  harmless  Securities
Administrator,  the Master Servicer, the Securities  Administrator,  the Custodian, the Indenture Trustee,
and the  Depositor,  and each of their  officers,  directors and  affiliates  from and against any losses,
damages, claims,  penalties,  fines,  forfeitures,  reasonable and necessary legal fees and related costs,
judgments  and other costs and expenses  arising out of or based upon (i) any untrue  statement or alleged
untrue statement of any material fact contained in any Annual  Statement of Compliance,  any Assessment of
Compliance  or any  Additional  Disclosure  provided  by the  Servicer  on its  behalf or on behalf of any
subservicer  or  subcontractor  engaged  by the  Servicer  pursuant  to  Section  3.20,  3.21 or 4.02 (the
"Servicer  Information"),  or (ii) any  omission  or alleged  omission  to state  therein a material  fact
required to be stated therein or necessary to make the statements  therein,  in light of the circumstances
in which they were made, not misleading;  provided, by way of clarification,  that this paragraph shall be
construed solely by reference to the Servicer  Information and not to any other  information  communicated
in connection  with the Notes,  without regard to whether the Servicer  Information or any portion thereof
is presented together with or separately from such other information.

                  The Custodian shall indemnify and hold harmless the Securities Administrator,  the Master
Servicer,  the Servicer,  the Seller, the Sponsor, the Indenture Trustee, and the Depositor and each of its
respective  officers  and  directors  from and against  any  losses,  damages,  claims,  penalties,  fines,
forfeitures,  reasonable and necessary legal fees and related costs, judgments and other costs and expenses
directly resulting from a material breach of the obligations of the Custodian under Sections 3.20, 3.21 and
4.02 of this Agreement constituting negligence,  bad faith or willful misconduct on behalf of the Custodian
in  connection  therewith.  In  addition,  the  Custodian  shall  indemnify  and hold  harmless  Securities
Administrator,  the Master Servicer, the Securities  Administrator,  the Servicer, the Seller, the Sponsor,
the Indenture  Trustee,  and the Depositor,  and each of their officers,  directors and affiliates from and
against any losses, damages, claims, penalties, fines, forfeitures, reasonable and necessary legal fees and
related costs,  judgments and other costs and expenses directly  resulting from (i) any untrue statement or
alleged  untrue  statement  of any material  fact  contained in any Annual  Statement  of  Compliance,  any
Assessment of Compliance or any Additional  Disclosure provided by the Custodian on its behalf or on behalf
of any subservicer or subcontractor engaged by the Custodian pursuant to Section 3.20, 3.21 or 4.02 of this
Agreement  (the  "Custodian  Information"),  or (ii) any  omission or alleged  omission to state  therein a
material fact required to be stated  therein or necessary to make the statements  therein,  in light of the
circumstances  in which  they were made,  not  misleading;  provided,  by way of  clarification,  that this
paragraph  shall be  construed  solely  by  reference  to the  Custodian  Information  and not to any other
information  communicated in connection with the Notes, without regard to whether the Custodian Information
or any portion thereof is presented together with or separately from such other information.

                  The  Sponsor  shall  indemnify  and hold  harmless  the  Securities  Administrator,  the
Depositor,  the Indenture  Trustee,  the Custodian,  the Securities  Administrator and the Master Servicer
and each of its  officers,  directors  and  affiliates  from and  against  any  losses,  damages,  claims,
penalties,  fines,  forfeitures,  reasonable  and necessary  legal fees and related  costs,  judgments and
other costs and expenses  arising out of or based upon a breach of the  obligations  of the Sponsor  under
Section 4.02 or the Sponsor's  negligence,  bad faith or willful  misconduct in connection  therewith.  In
addition,  the Sponsor shall  indemnify  and hold  harmless the  Depositor,  the  Indenture  Trustee,  the
Custodian,  the Securities  Administrator  and the Master  Servicer and each of its  respective  officers,
directors and affiliates from and against any losses,  damages,  claims,  penalties,  fines,  forfeitures,
reasonable  and necessary  legal fees and related  costs,  judgments and other costs and expenses  arising
out of or based upon (i) any untrue  statement or alleged untrue  statement of any material fact contained
in any  Additional  Disclosure  provided  by the Sponsor  that is  required  to be filed  pursuant to this
Section 4.02 (the  "Sponsor  Information"),  or (ii) any omission or alleged  omission to state  therein a
material fact required to be stated therein or necessary to make the statements  therein,  in light of the
circumstances  in which they were made,  not  misleading;  provided,  by way of  clarification,  that this
paragraph shall be construed  solely by reference to the Sponsor  Information that is required to be filed
and not to any other  information  communicated  in connection  with the Notes,  without regard to whether
the Sponsor  Information or any portion  thereof is presented  together with or separately from such other
information.

                  If the  indemnification  provided  for herein is  unavailable  or  insufficient  to hold
harmless the  Depositor,  the  Securities  Administrator,  the Sponsor,  the  Servicer,  the Seller or the
Master  Servicer,  as applicable,  then the defaulting  party, in connection with any conduct for which it
is providing  indemnification  under this Section  4.02(b),  agrees that it shall contribute to the amount
paid or payable by the other  parties as a result of the losses,  claims,  damages or  liabilities  of the
other party in such  proportion as is appropriate  to reflect the relative fault and the relative  benefit
of the respective parties.

                  The  indemnification  provisions  set forth in this Section  4.02(b)  shall  survive the
termination of this Agreement or the termination of any party to this Agreement.

                  (c)      Failure of the Master  Servicer  to comply  with  Section  3.20,  3.21 and this
Section  4.02  (including  with  respect to the  timeframes  required  herein)  shall  constitute a Master
Servicer  Event of  Termination,  and at the written  direction of the  Depositor,  the Indenture  Trustee
shall,  in addition to whatever  rights the Indenture  Trustee may have under this Agreement and at law or
equity or to damages,  including  injunctive  relief and  specific  performance,  upon notice  immediately
terminate all of the rights and  obligations  of the Master  Servicer  under this  Agreement and in and to
the Mortgage Loans and the proceeds  thereof  without  compensating  the Master Servicer for the same (but
subject to the Master Servicer rights to payment of any Master Servicing  Compensation  and  reimbursement
of all amounts for which it is entitled to be  reimbursed  prior to the date of  termination).  Failure of
the Securities  Administrator  to comply with this Section 3.17  (including with respect to the timeframes
required  in this  Section)  which  failure  results in a failure to timely  file the  related  Form 10-K,
shall, at the written  direction of the Depositor,  constitute a default and the Indenture  Trustee at the
direction of the Depositor  shall,  in addition to whatever  rights the  Indenture  Trustee may have under
this Agreement and at law or equity or to damages,  including injunctive relief and specific  performance,
upon notice  immediately  terminate  all of the rights and  obligations  of the  Securities  Administrator
under this Agreement and in and to the Mortgage Loans and the proceeds  thereof without  compensating  the
Securities  Administrator  for  the  same  (but  subject  to  the  Securities   Administrator's  right  to
reimbursement  of  all  amounts  for  which  it  is  entitled  to be  reimbursed  prior  to  the  date  of
termination).  This  paragraph  shall  supersede  any  other  provision  in this  Agreement  or any  other
agreement to the contrary.  In connection  with the  termination of the Master  Servicer or the Securities
Administrator  pursuant to this Section 4.02, the Indenture  Trustee shall be entitled to reimbursement of
all costs and expenses  associated  with such  termination  to the extent set forth in Section 6.08 of the
Indenture.  Notwithstanding  anything  to the  contrary  in this  Agreement,  no Event of  Default  by the
Master  Servicer  or default by the  Securities  Administrator  shall have  occurred  with  respect to any
failure to properly  prepare,  execute  and/or timely file any report on Form 8-K, Form 10-D or Form 10-K,
any Form 15 or Form 12b-25 or any  amendments to Form 8-K, 10-D or 10-K,  where such failure  results from
a party's  failure to deliver,  on a timely  basis,  any  information  from such party  needed to prepare,
arrange  for  execution  or file any such  report,  Form or  amendment,  and does not result  from its own
negligence, bad faith or willful misconduct.

                  (d)      Notwithstanding  the  provisions  of Section  7.01,  this  Section  4.02 may be
amended without the consent of the Noteholders.

                  (e)      Any report,  notice or  notification  to be delivered by the Master Servicer or
the Securities  Administrator  to the Depositor  pursuant to this Section 4.02, may be delivered via email
to  RegABNotifications@bear.com  or,  in the case of a  notification,  telephonically  by  calling  Reg AB
Compliance Manager at 212-272-7525.

                  (f)      Each of the parties  acknowledges and agrees that the purpose of Sections 3.20,
3.21 and 4.02 of this Agreement is to facilitate  compliance by the Sponsor,  the Depositor and the Master
Servicer  with the  provisions  of  Regulation  AB.  Therefore,  each of the  parties  agrees that (a) the
obligations  of the  parties  hereunder  shall be  interpreted  in such a  manner  as to  accomplish  that
purpose,  (b) the parties'  obligations  hereunder  will be  supplemented  and modified as necessary to be
consistent  with any such  amendments,  interpretive  advice or guidance,  convention  or consensus  among
active  participants in the asset-backed  securities  markets,  advice of counsel, or otherwise in respect
of the  requirements of Regulation AB, (c) the parties shall comply with  reasonable  requests made by the
Sponsor,  the Depositor,  the Master Servicer or the Securities  Administrator  for delivery of additional
or  different  information  as  the  Sponsor,  the  Depositor,  the  Master  Servicer  or  the  Securities
Administrator  may determine in good faith is necessary to comply with the  provisions  of Regulation  AB,
and (d) no amendment  of this  Agreement  shall be required to effect any such changes in the  obligations
of the parties to this  transaction  as are  necessary  to  accommodate  evolving  interpretations  of the
provisions of Regulation AB.

                  Section 4.03.     Swap Account.

                  (a)      On the Closing Date, the Securities  Administrator shall establish and maintain
a separate,  segregated trust account titled,  "Swap Account,  The Bank of New York, as Indenture Trustee,
in trust for the  registered  Noteholders  of Newcastle  Mortgage  Securities  Trust 2007-1,  Asset-Backed
Notes,  Series  2007-1." Such account shall be an Eligible  Account and funds on deposit  therein shall be
held separate and apart from,  and shall not be commingled  with,  any other  moneys,  including,  without
limitation,  other  moneys of the  Securities  Administrator  held  pursuant  to this  Agreement.  Amounts
therein shall be held uninvested.

                  (b)      On the  Business Day prior to Payment  Date,  prior to any payment to any Note,
the  Securities  Administrator  shall  deposit into the Swap Account the amount of any Net Swap Payment or
Swap Termination  Payment (other than any Swap Termination  Payment resulting from a Swap Provider Trigger
Event) owed to the Swap  Provider  (after  taking  into  account any  upfront  payment  received  from the
counterparty  to a  replacement  interest  rate swap  agreement)  from funds  collected  and received with
respect to the Mortgage Loans prior to the  determination  of Available Funds and all amounts  received by
it from the Swap Provider.

                  (c)      The  Securities  Administrator  shall use any payment  received  from the Owner
Trustee  pursuant to Section 2.03 of the Trust  Agreement  to make any upfront  payment  required  under a
replacement  swap agreement and any upfront payment  received from the  counterparty to a replacement swap
agreement shall be used to pay any Swap Termination Payment owed to the Swap Provider.

                  Section 4.04.     Cap Account.

                  (a)      On the Closing Date, the Securities  Administrator shall establish and maintain
a separate,  segregated trust account titled,  "Cap Account,  The Bank of New York, as Indenture  Trustee,
in trust for the  registered  Noteholders  of Newcastle  Mortgage  Securities  Trust 2007-1,  Asset-Backed
Notes,  Series  2007-1." Such account shall be an Eligible  Account and funds on deposit  therein shall be
held separate and apart from,  and shall not be commingled  with,  any other  moneys,  including,  without
limitation,  other  moneys of the  Securities  Administrator  held  pursuant  to this  Agreement.  Amounts
therein shall be held uninvested.

                                                ARTICLE V

                                      THE SERVICER AND THE DEPOSITOR

                  Section 5.01.     Liability of the Servicer, Master Servicer and the Depositor.

                  The Servicer and Master  Servicer  shall be liable in  accordance  herewith  only to the
extent of the  obligations  specifically  imposed upon and undertaken by Servicer or Master  Servicer,  as
the case may be, herein.  The Depositor  shall be liable in accordance  herewith only to the extent of the
obligations specifically imposed upon and undertaken by the Depositor.

                  Section 5.02.     Merger or Consolidation  of, or Assumption of the Obligations of, the
                                    Servicer or the Depositor.

                  Any entity into which the Servicer or Depositor  may be merged or  consolidated,  or any
entity  resulting  from any merger,  conversion  or  consolidation  to which the Servicer or the Depositor
shall be a party,  or any corporation  succeeding to the business of the Servicer or the Depositor,  shall
be the successor of the Servicer or the Depositor,  as the case may be,  hereunder,  without the execution
or filing of any paper or any  further act on the part of any of the parties  hereto,  anything  herein to
the contrary  notwithstanding;  provided,  however,  that the  successor  Servicer  shall  satisfy all the
requirements of Section 6.02 with respect to the qualifications of a successor Servicer.

                  Section 5.03.     Limitation on Liability of the Servicer, Master Servicer and Others.

                  None of the  Servicer,  the Master  Servicer,  the Depositor nor any of the directors or
officers or employees or agents of the Servicer,  the Master  Servicer or the Depositor shall be under any
liability to the Trust or the  Noteholders  for any action taken or for refraining  from the taking of any
action by the Servicer the Master  Servicer,  or the Depositor in good faith  pursuant to this  Agreement,
or for errors in judgment;  provided,  however,  that this provision  shall not protect the Servicer,  the
Master  Servicer,  the Depositor or any such Person against any liability which would otherwise be imposed
by  reason of its  willful  misfeasance,  bad  faith or  negligence  in the  performance  of duties of the
Servicer,  the  Master  Servicer,  or the  Depositor,  as the case may be, or by  reason  of its  reckless
disregard of its obligations and duties as Servicer,  Master Servicer,  or Depositor,  as the case may be,
hereunder.  The  Servicer  and Master  Servicer,  and any  director or officer or employee or agent of the
Servicer  or Master  Servicer  may rely in good faith on any  document  of any kind prima  facie  properly
executed and submitted by any Person respecting any matters arising  hereunder.  The Servicer,  the Master
Servicer and the Depositor,  and any director or officer or employee or agent of the Servicer,  the Master
Servicer  or the  Depositor,  shall be  indemnified  by the  Trust  and held  harmless  against  any loss,
liability or expense  incurred in connection  with (i) any legal action  relating to this Agreement or the
Notes,  other than any loss,  liability  or expense  incurred  by reason of its willful  misfeasance,  bad
faith or negligence or by reason of its reckless  disregard of its obligations and duties  hereunder or by
reason  of its  failure  to  perform  its  obligations  or  duties  hereunder  and  (ii) any  breach  of a
representation  or warranty  regarding  the  Mortgage  Loans.  The  Servicer,  the Master  Servicer or the
Depositor  may  undertake  any such action  which it may deem  necessary  or  desirable in respect of this
Agreement,  and the  rights  and  duties  of the  parties  hereto  and the  interests  of the  Noteholders
hereunder.  In such event,  unless the  Depositor,  the Master  Servicer or the Servicer  acts without the
consent of the Holders of 51% of the aggregate Note Balance of the Notes,  the  reasonable  legal expenses
and costs of such action and any liability  resulting  therefrom shall be expenses,  costs and liabilities
of the Trust and the Servicer shall be entitled to be reimbursed  therefor from the Collection  Account as
and to the extent provided in Section 3.11, any such right of  reimbursement  being prior to the rights of
the  Noteholders  to  receive  any  amount  in the  Collection  Account.  The  Master  Servicer  shall  be
indemnified by the Issuing Entity pursuant to Section 6.07 of the Indenture.

                  The  Servicer's  and the  Depositor's  right to indemnity or  reimbursement  pursuant to
this Section shall survive any  resignation  or  termination  of the Servicer  pursuant to Section 5.04 or
6.01 with respect to any losses,  expenses,  costs or  liabilities  arising prior to such  resignation  or
termination (or arising from events that occurred prior to such  resignation or  termination).  The Master
Servicer's  right  to  indemnity  or  reimbursement  pursuant  to this  Section  5.03  shall  survive  any
resignation  or termination  of the Master  Servicer  pursuant to Section 3.40 or 6.06 with respect to any
losses,  expenses,  costs or liabilities arising prior to such resignation or termination (or arising from
events that occurred prior to such resignation or termination).

                  Section 5.04.     Servicer Not to Resign.

                  The  Servicer  shall not resign from the  obligations  and duties  hereby  imposed on it
except upon  determination  that its duties hereunder are no longer  permissible under applicable law. Any
such  determination  pursuant to the preceding  sentence  permitting the resignation of the Servicer shall
be  evidenced  by an Opinion of  Counsel  to such  effect  obtained  at the  expense of the  Servicer  and
delivered to the Master  Servicer.  No  resignation  of the  Servicer  shall  become  effective  until the
Servicer  appoints a successor  servicer and the  successor  servicer  shall have  assumed the  Servicer's
responsibilities,  duties,  liabilities  (other than those liabilities  arising prior to the assumption of
servicing  duties by the Successor  Servicer) and obligations  under this Agreement.  Any such resignation
shall not relieve the Servicer of  responsibility  for any of the  obligations  specified in Sections 6.01
and 6.02 as obligations that survive the resignation or receipt of notice of termination of the Servicer

                  Except as  expressly  provided  in this  Agreement,  the  Servicer  shall not  assign or
transfer  any of its rights,  benefits or  privileges  hereunder  to any other  Person,  or delegate to or
subcontract  with,  or authorize  or appoint any other  Person to perform any of the duties,  covenants or
obligations to be performed by the Servicer hereunder.  The foregoing  prohibition on assignment shall not
prohibit the Servicer from  designating a Sub-Servicer as payee of any  indemnification  amount payable to
the Servicer hereunder;  provided,  however, no Sub-Servicer shall be a third-party  beneficiary hereunder
and the parties  hereto shall not be required to recognize any  Sub-Servicer  as an indemnitee  under this
Agreement.

                  Section 5.05.     Delegation of Duties.

                  In the  ordinary  course of  business,  the Servicer at any time may delegate any of its
duties  hereunder to any Person,  including  any of its  Affiliates,  who agrees to conduct such duties in
accordance  with  standards  comparable  to those set forth in Section  3.01.  Such  delegation  shall not
relieve the Servicer of its  liabilities  and  responsibilities  with respect to such duties and shall not
constitute a resignation  within the meaning of Section 5.04.  Except as provided in Section 3.02, no such
delegation is permitted that results in the delegee  subservicing  any Mortgage Loans.  The Servicer shall
provide the Indenture  Trustee,  Master Servicer and Securities  Administrator  with 60 days prior written
notice  prior to the  delegation  of any of its  duties to any  Person  other  than any of the  Servicer's
Affiliates or their respective successors and assigns.

                  Section 5.06.     Indemnification.

                  (a)      The Servicer  agrees to indemnify  and hold the  Indenture  Trustee,  the Owner
Trustee, the Sponsor, the Master Servicer, the Securities  Administrator,  the Seller, the Sponsor and the
Depositor  harmless against any and all claims,  losses,  penalties,  fines,  forfeitures,  legal fees and
related costs,  judgments,  and any other costs, fees and expenses that the Indenture  Trustee,  the Owner
Trustee, the Sponsor, the Master Servicer,  the Securities  Administrator,  the Seller, the Sponsor or the
Depositor  may  sustain  in any way  related  to the  failure of the  Servicer  to perform  its duties and
service the Mortgage Loans in compliance with the terms of this Agreement.

                  (b)      The  Master  Servicer  shall  indemnify  and  hold  harmless  the  Trust,   the
Securities  Administrator,  the Servicer,  the Seller, the Sponsor,  the Depositor,  the Indenture Trustee
and the Owner  Trustee  from and  against  any loss,  liability,  expense,  damage or injury  suffered  or
sustained  by reason  of the  Master  Servicer's  willful  misfeasance,  bad  faith or  negligence  in the
performance of its  activities in master  servicing or  administering  the Mortgage Loans pursuant to this
Agreement,  including,  but not limited to, any judgment,  award,  settlement,  reasonable attorneys' fees
and other costs or expenses  incurred in connection  with the defense of any actual or threatened  action,
proceeding  or claim  related to the Master  Servicer's  misfeasance,  bad faith or  negligence.  Any such
indemnification  shall not be  payable  from the  assets of the  Trust.  The  provisions  of this  Section
5.06(b) shall survive the termination of this Agreement.

                  (c)      The Custodian  shall indemnify and hold harmless the Trust,  the Servicer,  the
Seller,  the Sponsor,  the  Depositor  and the  Indenture  Trustee  from and against any loss,  liability,
expense,  damage or injury directly  resulting from a Custodial  Delivery Failure.  The provisions of this
Section 5.06(c) shall survive the termination of this Agreement.

                  Section 5.07.     Inspection

                  The Servicer,  in its capacity as Servicer,  shall afford the Indenture  Trustee and the
Master Servicer,  upon reasonable notice,  during normal business hours,  access to all records maintained
by the  Servicer  in respect  of its  rights and  obligations  hereunder  and  access to  officers  of the
Servicer responsible for such obligations.

                                                ARTICLE VI

                                                  DEFAULT

                  Section 6.01.     Servicer Events of Termination.

                  (a)      If any one of the following events  ("Servicer  Events of  Termination")  shall
occur and be continuing:

                           (i)      (A) The failure by the Servicer to make any Advance;  or (B) any other
         failure by the  Servicer  to deposit in the  Collection  Account or the Note  Account any deposit
         required to be made under the terms of this  Agreement  which  continues  unremedied for a period
         of one Business  Day after the date upon which  written  notice of such  failure  shall have been
         given to the Servicer by the Master Servicer,  Securities  Administrator or Indenture  Trustee or
         to the Servicer and the  Indenture  Trustee by any Holders of not less than 25% of the  aggregate
         Note Balances of the Notes; or

                           (ii)     The failure by the  Servicer to make any  required  Servicing  Advance
         which failure  continues  unremedied for a period of 30 days, or the failure by the Servicer duly
         to observe or perform,  in any material respect,  any other covenants,  obligations or agreements
         of the Servicer as set forth in this Agreement,  which failure continues  unremedied for a period
         of 30 days (or if such  failure or breach  cannot be  remedied  within 30 days,  then such remedy
         shall have been commenced within 30 days and diligently pursued  thereafter;  provided,  however,
         that in no event  shall such  failure or breach be allowed to exist for a period of greater  than
         90 days),  after the date (A) on which written  notice of such failure,  requiring the same to be
         remedied,   shall  have  been  given  to  the  Servicer  by  the  Master   Servicer,   Securities
         Administrator  or Indenture  Trustee or to the Indenture  Trustee by any Holders of not less than
         25% of the  aggregate  Note Balance of the Notes or (B) of actual  knowledge of such failure by a
         Servicing Officer of the Servicer; or

                           (iii)    The  entry  against  the  Servicer  of a decree or order by a court or
         agency or supervisory  authority  having  jurisdiction  in the premises for the  appointment of a
         trustee, conservator,  receiver or liquidator in any insolvency,  conservatorship,  receivership,
         readjustment of debt,  marshalling of assets and liabilities or similar  proceedings,  or for the
         winding  up or  liquidation  of its  affairs,  and the  continuance  of any such  decree or order
         unstayed and in effect for a period of 60 days;

                           (iv)     Reserved; or

                           (v)      The Servicer  shall  voluntarily go into  liquidation,  consent to the
         appointment  of a  conservator  or receiver or liquidator  or similar  person in any  insolvency,
         readjustment  of debt,  marshalling  of assets  and  liabilities  or  similar  proceedings  of or
         relating to the  Servicer or of or relating to all or  substantially  all of its  property;  or a
         decree  or order  of a court or  agency  or  supervisory  authority  having  jurisdiction  in the
         premises for the  appointment  of a  conservator,  receiver,  liquidator or similar person in any
         insolvency,  readjustment of debt,  marshalling of assets and liabilities or similar proceedings,
         or for the  winding-up  or  liquidation  of its  affairs,  shall have been  entered  against  the
         Servicer  and such  decree or order  shall  have  remained  in force  undischarged,  unbonded  or
         unstayed  for a period of 60 days;  or the Servicer  shall admit in writing its  inability to pay
         its debts  generally  as they become due,  file a petition to take  advantage  of any  applicable
         insolvency or  reorganization  statute,  make an  assignment  for the benefit of its creditors or
         voluntarily suspend payment of its obligations;

                  (b)      then,  and in  each  and  every  such  case,  so long as a  Servicer  Event  of
Termination  shall not have been remedied within the applicable  grace period,  (x) with respect solely to
clause  (i)(A)  above,  if such  Advance is not made by 11:00 A.M.,  New York time,  on the  Business  Day
immediately  following  the  Servicer  Remittance  Date  (provided  the  Master  Servicer  shall  give the
Servicer,  and the Servicer shall have  received,  notice of such failure to advance by 5:00 P.M. New York
time on the  Servicer  Remittance  Date),  the  Master  Servicer  shall  terminate  all of the  rights and
obligations of the Servicer under this Agreement and the Successor  Servicer  appointed in accordance with
Section 6.02, shall  immediately  make such Advance and assume,  pursuant to Section 6.02, the duties of a
successor  Servicer and (y) in the case of (i)(B),  (ii), (iii) and (iv) above, the Master Servicer shall,
at the direction of the Holders of each Class of Notes  evidencing  Percentage  Interests  aggregating not
less than 51%, by notice then given in writing to the Servicer and Master  Servicer  (and to the Indenture
Trustee if given by Holders of Notes),  terminate  all of the rights and  obligations  of the  Servicer as
servicer  under  this  Agreement.  Any such  notice to the  Servicer  shall  also be given to each  Rating
Agency,  the  Depositor,  the Sponsor and the Seller.  On or after the receipt by the Servicer (and by the
Indenture  Trustee if such notice is given by the  Holders) of such  written  notice,  all  authority  and
power of the Servicer  under this  Agreement,  whether with respect to the Notes or the Mortgage  Loans or
otherwise,  shall pass to and be vested in the  Successor  Servicer  pursuant  to and under this  Section;
and,  without  limitation,  and the Successor  Servicer is hereby  authorized and empowered to execute and
deliver,  on behalf of the Servicer,  as  attorney-in-fact  or otherwise,  any and all documents and other
instruments,  and to do or  accomplish  all other acts or things  necessary or  appropriate  to effect the
purposes  of such  notice of  termination,  whether to  complete  the  transfer  and  endorsement  of each
Mortgage Loan and related  documents or  otherwise.  The Servicer  agrees to cooperate  with the Successor
Servicer (or the applicable  successor Servicer) in effecting the termination of the  responsibilities and
rights of the Servicer hereunder,  including,  without limitation,  the delivery to the Successor Servicer
of all documents and records  requested by it to enable it to assume the Servicer's  functions  under this
Agreement  within ten  Business  Days  subsequent  to such notice,  the  transfer  within one Business Day
subsequent  to such notice to the  Successor  Servicer  for the  administration  by it of all cash amounts
that shall at the time be held by the Servicer and to be deposited by it in the  Collection  Account,  the
Note Account,  any REO Account or any Escrow  Account or that have been  deposited by the Servicer in such
accounts or  thereafter  received by the Servicer  with respect to the Mortgage  Loans or any REO Property
received by the Servicer.  All Servicing  Transfer  Costs shall be paid by the  predecessor  Servicer upon
presentation  of  reasonable  documentation  of such costs and  expenses and to the extent not paid by the
Servicer, by the Trust.

                  Notwithstanding  the  termination  of the  Servicer  hereunder,  the  Servicer  shall be
entitled to  reimbursement  of all unpaid  Servicing  Fees and all  unreimbursed  Advances  and  Servicing
Advances in the manner and at the times set forth herein.

                  Section 6.02.     Master Servicer to Act; Appointment of Successor.

                  (a)      From the time the Servicer  (and the  Indenture  Trustee,  if notice is sent by
the Holders)  receives a notice of  termination  pursuant to Section  6.01,  the Master  Servicer (or such
other successor  Servicer as is approved in accordance with this Agreement)  shall be the successor in all
respects to the Servicer in its capacity as servicer under this Agreement (the  "Successor  Servicer") and
the  transactions  set forth or  provided  for herein  and shall be  subject to all the  responsibilities,
duties  and  liabilities  relating  thereto  placed on the  Servicer  by the terms and  provisions  hereof
arising on and after its  succession.  Notwithstanding  the  foregoing,  the parties hereto agree that the
Successor  Servicer,  immediately  will assume all of the  obligations  of the  Servicer to make  Advances
subject to Section 4.01.  Notwithstanding  the foregoing,  the Successor Servicer shall not be responsible
for the lack of  information  and/or  documents that it cannot obtain through  reasonable  efforts.  It is
understood  and agreed by the parties  hereto that there will be a period of transition  (not to exceed 90
days) before the transition of servicing  obligations is fully effective.  As compensation  therefor,  the
Successor  Servicer  shall be entitled to such  compensation  as the Servicer  would have been entitled to
hereunder  if no such  notice of  termination  or  resignation  had been  given.  The  appointment  of the
Successor Servicer shall not affect any liability of the predecessor  Servicer which may have arisen under
this  Agreement  prior to its  termination  as Servicer to pay any  deductible  under an insurance  policy
pursuant to Section 3.14 or to reimburse the Successor  Servicer  pursuant to Section 3.06,  nor shall any
Successor  Servicer be liable for any acts or omissions of the  predecessor  Servicer or for any breach by
such Servicer of any of its  representations or warranties  contained herein or in any related document or
agreement.  The Successor  Servicer shall take such action,  consistent with this  Agreement,  as shall be
necessary to effectuate  any such  succession.  All reasonable  Servicing  Transfer Costs shall be paid by
the  predecessor  Servicer  upon  presentation  of  reasonable  documentation  of such costs,  and if such
predecessor  Servicer  defaults  in its  obligation  to pay such  costs,  such costs  shall be paid by the
Successor Servicer (in which case the Successor Servicer shall be entitled to reimbursement  therefor from
the assets of the Trust).

                  Notwithstanding  the above,  (a) if the Master Servicer is to act as successor  servicer
and is legally  unable so to act, the  Indenture  Trustee  shall act as Successor  Servicer and (b) if the
Indenture  Trustee is to act as successor  servicer and (i) if the  Indenture  Trustee is unwilling to act
as  Successor  Servicer  or (ii) if the  Indenture  Trustee is  legally  unable so to act,  the  Indenture
Trustee  shall  appoint  (with the  consent  of the  Majority  Certificateholder)  or  petition a court of
competent  jurisdiction to appoint,  any established housing and home finance  institution,  bank or other
mortgage  loan or home  equity  loan  servicer  having a net  worth of not less  than  $50,000,000  as the
successor to the Servicer hereunder in the assumption of all or any part of the  responsibilities,  duties
or liabilities of the Servicer  hereunder;  provided,  that the appointment of any such successor Servicer
will not result in the  qualification,  reduction or  withdrawal  of the ratings  assigned to the Notes by
the  Rating  Agencies  as  evidenced  by a  letter  to such  effect  from  the  Rating  Agencies.  Pending
appointment of a successor to the Servicer  hereunder,  unless the Indenture  Trustee is prohibited by law
from so acting,  the Indenture Trustee shall act in such capacity as hereinabove  provided.  In connection
with such  appointment and  assumption,  the successor  shall be entitled to receive  compensation  out of
payments on Mortgage  Loans in an amount  equal to the  compensation  which the Servicer  would  otherwise
have  received  pursuant to Section 3.18 (or such other  compensation  as the  Indenture  Trustee and such
successor shall agree, not to exceed the Servicing Fee).

                  (b)      Any  Successor  Servicer  shall  during  the term of its  service  as  servicer
continue to service and  administer  the Mortgage  Loans for the benefit of  Noteholders,  and maintain in
force a policy  or  policies  of  insurance  covering  errors  and  omissions  in the  performance  of its
obligations  as Servicer  hereunder and a fidelity  bond in respect of its officers,  employees and agents
to the same extent as the Servicer is so required pursuant to Section 3.14.

                  (c)      In connection  with the  termination or resignation of the Servicer  hereunder,
either (i) the Successor  Servicer,  including the Master Servicer or the Indenture Trustee if acting as a
Successor  Servicer,  shall  represent  and warrant that it is a member of MERS in good standing and shall
agree to comply in all material  respects with the rules and  procedures  of MERS in  connection  with the
servicing of the related  Mortgage  Loans that are  registered  with MERS,  in which case the  predecessor
Servicer  shall  cooperate  with the  Successor  Servicer in causing MERS to revise its records to reflect
the transfer of servicing to the Successor  Servicer as necessary  under MERS' rules and  regulations,  or
(ii) the predecessor  Servicer shall cooperate with the Successor  Servicer in causing MERS to execute and
deliver an Assignment in recordable  form to transfer the Mortgage from MERS to the Indenture  Trustee and
to execute  and deliver  such other  notices,  documents  and other  instruments  as may be  necessary  or
desirable  to effect a transfer of such  Mortgage  Loan or servicing  of such  Mortgage  Loan on the MERS®
System to the  Successor  Servicer.  The  predecessor  Servicer  shall  file or cause to be filed any such
Assignment in the appropriate  recording office.  The predecessor  Servicer shall bear any and all fees of
MERS,  costs of  preparing  any  Assignments,  and fees and costs of filing  any  Assignments  that may be
required under this Section 6.02(c).

                  Section 6.03.     Waiver of Defaults.

                  The Majority  Noteholders  may, on behalf of all  Noteholders,  waive,  in writing,  any
events  permitting  removal of the Servicer as servicer or the Master Servicer as master servicer pursuant
to this Article VI, provided,  however,  that the Majority Noteholders may not waive a default in making a
required  payment on a Note without the written  consent of the Holder of such Note.  Upon any waiver of a
past default,  such default shall cease to exist and any Servicer Event of Termination or Master  Servicer
Event of  Termination,  as applicable,  arising  therefrom shall be deemed to have been remedied for every
purpose of this  Agreement.  No such waiver shall extend to any  subsequent or other default or impair any
right  consequent  thereto  except to the extent  expressly so waived.  Notice of any such waiver shall be
given by the Securities Administrator to the Sponsor and the Rating Agencies.

                  Section 6.04.     Notification to Noteholders.

                  (a)      Upon any  termination  or  appointment of a successor to the Servicer or Master
Servicer  pursuant to this Article VI or Section  5.04,  the  Securities  Administrator  shall give prompt
written  notice  thereof to the Owner  Trustee,  the Sponsor,  the Depositor and the  Noteholders at their
respective addresses appearing in the Note Register and each Rating Agency.

                  (b)      No later than the later of (a) 60 days after the  occurrence of any event which
constitutes  or  which,  with  notice  or lapse of time or both,  would  constitute  a  Servicer  Event of
Termination or (b) within five Business Days after a Responsible  Officer of the Securities  Administrator
becomes aware of the occurrence of such an event, the Securities  Administrator  shall transmit by mail to
all  Noteholders  notice of such  occurrence  unless such default or Servicer Event of  Termination  shall
have been waived or cured.

                  Section 6.05.     Survivability of Liabilities.

                  Notwithstanding  anything  herein to the contrary,  upon  termination of the Servicer or
Master Servicer hereunder,  any liabilities of the Servicer or Master Servicer,  as the case may be, which
accrued prior to such termination shall survive such termination.

                  Section 6.06.     Master Servicer Events of Termination.

                  (a)      If any one of the following events ("Master  Servicer Events of Default") shall
occur and be continuing:

                           (i)      If the  Master  Servicer  is not  the  Securities  Administrator,  any
         failure by the Master  Servicer to furnish the  Securities  Administrator  the Mortgage Loan data
         sufficient  to prepare the reports  described in Section 7.05 of the  Indenture  which  continues
         unremedied  for a period of one  Business  Day after the date upon which  written  notice of such
         failure  shall  have  been  given  to  such  Master  Servicer  by the  Indenture  Trustee  or the
         Securities  Administrator  or to such  Master  Servicer,  the  Securities  Administrator  and the
         Indenture  Trustee  by the  Holders  of not less than 25% of the  aggregate  Note  Balance of the
         Notes; or

                           (ii)     Any  failure  on the part of the  Master  Servicer  duly to observe or
         perform in any  material  respect  any other of the  covenants  or  agreements  (other than those
         referred to in clauses  (viii) and (ix) below) on the part of the Master  Servicer  contained  in
         this  Agreement  which  continues  unremedied  for a period of thirty (30) days after the date on
         which written  notice of such failure,  requiring the same to be remedied,  shall have been given
         to the Master  Servicer  by the  Indenture  Trustee or the  Securities  Administrator,  or to the
         Master Servicer,  the Securities  Administrator  and the Indenture  Trustee by the Holders of not
         less than 25% of the aggregate Note Balance of the Notes; or

                           (iii)    A  decree  or  order of a court or  agency  or  supervisory  authority
         having  jurisdiction  for the  appointment  of a  conservator  or receiver or  liquidator  in any
         insolvency,  readjustment of debt,  marshalling of assets and liabilities or similar proceedings,
         or for the winding-up or liquidation of its affairs,  shall have been entered  against the Master
         Servicer,  and such decree or order shall have remained in force  undischarged  or unstayed for a
         period of sixty (60) days or any Rating  Agency  reduces or  withdraws  or threatens to reduce or
         withdraw  the  rating  of the  Notes  because  of  the  financial  condition  or  loan  servicing
         capability of such Master Servicer; or

                           (iv)     The Master  Servicer shall consent to the appointment of a conservator
         or receiver or liquidator in any  insolvency,  readjustment  of debt,  marshalling  of assets and
         liabilities,  voluntary  liquidation or similar proceedings of or relating to the Master Servicer
         or of or relating to all or substantially all of its property; or

                           (v)      The Master  Servicer  shall admit in writing its  inability to pay its
         debts  generally  as they  become  due,  file a  petition  to take  advantage  of any  applicable
         insolvency or  reorganization  statute,  make an  assignment  for the benefit of its creditors or
         voluntarily suspend payment of its obligations; or

                           (vi)     The Master  Servicer  shall be  dissolved,  or shall dispose of all or
         substantially  all of its  assets,  or  consolidate  with or merge into  another  entity or shall
         permit another  entity to  consolidate or merge into it, such that the resulting  entity does not
         meet the criteria for a Successor Master Servicer as specified in Section 6.04 hereof; or

                           (vii)    If a  representation  or warranty set forth in Section  2.01(b) hereof
         shall prove to be  incorrect  as of the time made in any respect that  materially  and  adversely
         affects the interests of the  Noteholders,  and the circumstance or condition in respect of which
         such  representation  or warranty was incorrect shall not have been eliminated or cured within 30
         days after the date on which written  notice of such incorrect  representation  or warranty shall
         have  been  given  to  the  Master   Servicer  by  the  Indenture   Trustee  or  the   Securities
         Administrator,  or to the  Master  Servicer,  the  Securities  Administrator  and  the  Indenture
         Trustee by the Holders of not less than 25% of the aggregate Note Balance of the Notes; or

                           (viii)   A  sale  or  pledge  of  any of the  rights  of  the  Master  Servicer
         hereunder  or an  assignment  of this  Agreement by the Master  Servicer or a  delegation  of the
         rights  or duties of the  Master  Servicer  hereunder  shall  have  occurred  in any  manner  not
         otherwise  permitted  hereunder  and without the prior written  consent of the Indenture  Trustee
         and the Holders of not less than 50% of the aggregate Note Balance of the Notes; or

                           (ix)     Any failure of the Master  Servicer to make any Monthly  Advances when
         such Monthly Advances are due, as required to be made hereunder.

                  (b)      then,  and in each and every such case, so long as a Master  Servicer  Event of
Default  shall not have been  remedied,  (x) with  respect  solely to clause (ix) above,  upon  receipt of
written  notice or  discovery  by a  Responsible  Officer of the  Indenture  Trustee or of the  Securities
Administrator  of such failure,  the  Indenture  Trustee shall give  immediate  telephonic  notice of such
failure to a Master  Servicing  Officer of the Master  Servicer and the Indenture  Trustee shall terminate
all of the rights and  obligations of the Master  Servicer  under this Agreement and the Successor  Master
Servicer  appointed  in  accordance  with  Section  6.07  shall  immediately  make  such  Monthly  Advance
(provided,  if the Successor Master Servicer  determines in its reasonable judgment that a Monthly Advance
is a  Nonrecoverable  Advance or if it is prohibited by law from doing so, the Successor  Master  Servicer
shall be under no  obligation to make such Monthly  Advance)  prior to the payment of funds on the related
Payment Date and assume,  pursuant to Section 6.07, the duties of a Successor  Master  Servicer and (y) in
the case of clauses (i), (ii),  (iii),  (iv),  (v), (vi),  (vii) and (viii) above,  the Indenture  Trustee
shall,  at the  direction of the Holders of not less than 51% of the  aggregate  Note Balance of the Notes
by notice then given in writing to the Master  Servicer (and to the Indenture  Trustee if given by Holders
of Notes),  terminate  all of the rights and  obligations  of the Master  Servicer as servicer  under this
Agreement.  Any such  notice to the  Master  Servicer  shall also be given to each  Rating  Agency and the
Seller.  On or after  receipt by the Master  Servicer of such written  notice,  all authority and power of
the Master  Servicer  under this  Agreement,  whether with  respect to the Notes or the Mortgage  Loans or
otherwise,  shall  pass to and be vested in the  Successor  Master  Servicer  pursuant  to and under  this
Section 6.06; and, without  limitation,  the Successor Master Servicer is hereby  authorized and empowered
to execute and deliver, on behalf of the Master Servicer,  as  attorney-in-fact or otherwise,  any and all
documents  and  other  instruments,  and to do or  accomplish  all  other  acts  or  things  necessary  or
appropriate  to effect the  purposes of such notice of  termination,  whether to complete the transfer and
endorsement  of each Mortgage Loan and related  documents,  or otherwise.  The Master  Servicer  agrees to
cooperate  with the  Successor  Master  Servicer,  the  Servicer,  the  Securities  Administrator  and the
Indenture Trustee in effecting the termination of the  responsibilities  and rights of the Master Servicer
hereunder.   All  Servicing  Transfer  Costs  and  other  reasonable   out-of-pocket  costs  and  expenses
(including  attorneys' fees) incurred in connection with  transferring any Mortgage Files to the Successor
Master  Servicer and amending this  Agreement to reflect such  succession as Master  Servicer  pursuant to
this Section  6.06 shall be paid by the  predecessor  Master  Servicer  within 90 days of written  demand,
itemized in reasonable  detail,  or, to the extent not paid by the  predecessor  Master  Servicer,  by the
Trust prior to payments to Noteholders (or, if the predecessor  Master Servicer is the Indenture  Trustee,
by the  initial  Master  Servicer),  upon  presentation  of  reasonable  documentation  of such  costs and
expenses.  If the predecessor  Master  Servicer is required but fails to pay the amounts  specified in the
preceding  sentence and such amounts are paid by the Trust,  the Securities  Administrator  shall,  at the
direction and expense of the  Certificateholders,  take appropriate  action to enforce such obligation and
recover such amounts on behalf of such Certificateholders.

                  Notwithstanding  any  termination  of the activities of the Master  Servicer  hereunder,
the Master  Servicer shall  continue to be entitled to receive from the Trust,  payment of all the accrued
and unpaid  portion of the Master  Servicing  Fees to which the Master  Servicer  would have been entitled
and  reimbursement  for all outstanding  Monthly  Advances which amount shall be remitted by the Successor
Master  Servicer to the terminated  Master  Servicer as permitted under Section 3.01 of the Indenture on a
first-in,  first-out  basis.  The Master Servicer shall continue to be entitled to the benefits of Section
5.03,  notwithstanding  any  termination  hereunder,  with  respect  to  events  occurring  prior  to such
termination.

                  Section 6.07.     Appointment of Successor Master Servicer.

                  (a)      The Issuer and the Indenture Trustee hereby appoint,  and The Bank of New York,
hereby  accepts  appointment,  on behalf of itself or an affiliate,  subject to the provisions of Sections
3.40 and  6.07(d)  hereof,  upon  receipt by the Master  Servicer of a notice of  termination  pursuant to
Section 6.06 or upon  resignation  of the Master  Servicer  pursuant to Section  3.40, to be the successor
(the  "Successor  Master  Servicer")  in all  respects to the Master  Servicer in its capacity as servicer
under this  Agreement  and the  transactions  set forth or provided for herein and shall be subject to all
the  responsibilities,  duties and liabilities relating thereto placed on the Master Servicer by the terms
and provisions  hereof arising on and after its succession;  provided,  however,  that,  without affecting
the  immediate  termination  of  the  rights  of the  Master  Servicer  hereunder,  it is  understood  and
acknowledged  by the parties  hereto that there will be a period of transition  not to exceed 90 days (the
"Master Servicer Transition Period") before the master servicing transfer is fully effected.

                  During the Master Servicer  Transition  Period,  neither the Successor  Master Servicer,
the Securities  Administrator  nor the Indenture  Trustee shall be responsible for the lack of information
and documents that it cannot reasonably obtain on a practicable basis under the circumstances.

                  As  compensation  therefor,  the  Successor  Master  Servicer  shall be entitled to such
compensation  as the  Master  Servicer  would  have  been  entitled  to  hereunder  if no such  notice  of
termination  had been  given.  Notwithstanding  the above,  if the  Successor  Master  Servicer is legally
unable to act as successor  servicer,  the Indenture  Trustee may appoint or petition a court of competent
jurisdiction to appoint,  any  established  housing and home finance  institution,  bank or other mortgage
loan or home equity loan servicer that is an Approved  Servicer  (defined for this purpose by (i) striking
the words "the Master  Servicer" in clause 1 of the  definition  thereof and (ii) striking  clause 2(a) in
the  definition  thereof) as the successor to the Master  Servicer  hereunder in the  assumption of all or
any part of the  responsibilities,  duties or liabilities of the Master Servicer hereunder;  provided that
the appointment of any such Successor Master Servicer will not result in the  qualification,  reduction or
withdrawal of the ratings  assigned to the Offered Notes by the Rating  Agencies.  Pending  appointment of
a successor to the Master Servicer  hereunder,  unless the Successor  Master Servicer is prohibited by law
from so acting,  the Successor  Master  Servicer  shall act in such capacity as hereinabove  provided.  In
connection with such appointment and assumption,  the successor shall be entitled to receive  compensation
out of payments on the Mortgage  Loans in an amount equal to the  compensation  which the Master  Servicer
would  otherwise  have  received  pursuant to Section 3.37 (or such lesser  compensation  as the Indenture
Trustee and such  successor  shall  agree).  The  appointment  of a Successor  Master  Servicer  shall not
affect any liability of the  predecessor  Master Servicer which may have arisen under this Agreement prior
to its  termination  as  Master  Servicer  to  indemnify  the  Indenture  Trustee,  the  Servicer  and the
Securities  Administrator  pursuant to Section 5.06, nor shall any Successor Master Servicer be liable for
any acts or  omissions of the  predecessor  Master  Servicer or for any breach by such Master  Servicer of
any of its  representations  or warranties  contained herein or in any related document or agreement.  The
Indenture  Trustee,   the  Securities   Administrator  or  a  Successor  Master  Servicer  shall  have  no
responsibility  or obligation  (i) to repurchase or substitute  for any of the Mortgage  Loans or (ii) for
any  acts  or  omissions  of  a  predecessor  Master  Servicer.  The  Indenture  Trustee,  the  Securities
Administrator  and such successor  shall take such action,  at the expense of the Trust,  consistent  with
this Agreement, as shall be necessary to effectuate any such succession.

                  (b)      Any successor,  including the Successor Master Servicer, to the Master Servicer
as servicer  shall during the term of its service as master  servicer  (i) continue to master  service and
administer  the  Mortgage  Loans for the  benefit of  Noteholders  and (ii)  maintain in force a policy or
policies of insurance  covering  errors and  omissions in the  performance  of its  obligations  as Master
Servicer  hereunder  and a  fidelity  bond in respect of its  officers,  employees  and agents to the same
extent as the Master Servicer is so required pursuant to Section 3.32.

                  (c)      In  connection  with the  termination  or  resignation  of the Master  Servicer
hereunder,  the Successor Master  Servicer,  including the Indenture  Trustee if the Indenture  Trustee is
acting as  Successor  Master  Servicer,  shall  represent  and warrant that it is a member of MERS in good
standing  and shall agree to comply in all  material  respects  with the rules and  procedures  of MERS in
connection with the servicing of the Mortgage Loans that are registered with MERS.

                  (d)      Notwithstanding  the above, the Indenture Trustee may, if it shall be unwilling
to continue to so act, or shall,  if it is unable to so act,  petition a court of  competent  jurisdiction
to appoint, or appoint on its own behalf any established  housing and home finance  institution  servicer,
master  servicer,  servicing  or  mortgage  servicing  institution  having a net  worth  of not less  than
$25,000,000  and meeting such other  standards  for a successor  master  servicer as are set forth in this
Agreement,  as the successor to such Master  Servicer in the  assumption  of all of the  responsibilities,
duties or liabilities of a master servicer, like the Master Servicer.

                  Neither the Indenture  Trustee nor any other  Successor  Master Servicer shall be deemed
to be in default  hereunder  by reason of any failure to make,  or any delay in making,  any  distribution
hereunder  or any portion  thereof or any failure to perform,  or any delay in  performing,  any duties or
responsibilities  hereunder,  in either case  caused by the  failure of the Master  Servicer to deliver or
provide,  or any  delay of the  Master  Servicer  in  delivering  or  providing,  any  cash,  information,
documents or records to it.

                  Notwithstanding  anything  herein  to the  contrary,  in no event  shall  the  Indenture
Trustee be liable for any Servicing Fee or Master  Servicing Fee or for any  differential in the amount of
the  Servicing  Fee or Master  Servicing  Fee paid  hereunder  and the  amount  necessary  to  induce  any
Successor  Servicer  or  Successor  Master  Servicer to act as  Successor  Servicer  or  Successor  Master
Servicer, as applicable, under this Agreement and the transactions set forth or provided for herein.

                                               ARTICLE VII

                                         MISCELLANEOUS PROVISIONS

                  Section 7.01.     Amendment.

                  This  Agreement  may be  amended  from  time to time by the  parties  hereto  (with  the
consent of the Majority  Certificateholder),  provided that any amendment be  accompanied  by (i) a letter
from the Rating  Agencies  that the  amendment  will not result in the  downgrading  or  withdrawal of the
rating then assigned to the Notes and (ii) an Officer's  Certificate  of the Sponsor,  that such amendment
will not cause the Trust to fail to  qualify as a  "qualified  special  purpose  entity"  under  Financial
Accounting Standards No. 140.

                  Section 7.02.     GOVERNING LAW.

                  THIS  AGREEMENT  SHALL BE  CONSTRUED  IN  ACCORDANCE  WITH THE LAWS OF THE  STATE OF NEW
YORK,  WITHOUT  REFERENCE TO ITS CONFLICT OF LAW PROVISIONS  (OTHER THAN SECTIONS 5-1401 AND 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 7.03.     Notices.

                  All  demands,  notices  and  communications  hereunder  shall be in writing and shall be
deemed to have been duly given if when delivered to:

                  (a)      in the case of the Depositor:

                  Bear Stearns Asset Backed Securities I LLC
                  383 Madison Avenue
                  New York, New York, 10179
                  Attention: General Counsel

                  (b)      in the case of the Originator

                  Fremont Investment & Loan
                  2727 East Imperial Highway
                  Brea, CA 92821
                  Attn: Senior Vice President, Capital Markets
                  Attn: Vice President, Secondary Marketing

                  (c)      in the case of the Servicer:

                           Nationstar Mortgage LLC
                           350 Highland Drive
                           Lewisville, Texas 75067
                           Attn:   Jay Bray

                  (d)      in the case of Rating Agencies:

                  Moody's Investors Service, Inc.
                  4th Floor
                  99 Church Street
                  New York, New York 10007
                  Attention: Residential Mortgage Monitoring Unit

                  Standard & Poor's, a division of The McGraw-Hill Companies, Inc.
                  55 Water Street - 41st Floor
                  New York, New York 10041
                  Attention: Asset Backed Surveillance Group

                  (e)      in the case of the Owner Trustee, the Corporate Trust Office:

                  Wilmington Trust Company
                  Rodney Square North
                  1100 North Market Street
                  Wilmington, Delaware 19890
                  Attention: Corporate Trust Administration

                  (f)      in the case of the Issuing Entity:

                  Newcastle Mortgage Securities Trust 2007-1
                  c/o Newcastle Investment Corp.
                  750 B Street, Suite 2700
                  San Diego, CA 92101
                  Attention: Legal
                  with a copy to the Sponsor at the address in (g) below.

                  (g)      in the case of the Indenture Trustee:

                  The Bank of New York,
                  101 Barclay Street, Floor 4W
                  New York, New York  10286
                  Attn: Structured Finance - Newcastle Mortgage Securities Trust 2007-1

                  (h)      in the case of the Sponsor:

                  Newcastle Investment Corp.
                  1245 Avenue of the Americas
                  New  York, New York 10022
                  Attention: Debra Hess

                  (i)      in the case of the Master Servicer:

                  Wells Fargo Bank, N.A,
                  9062 Old Annapolis Road,
                  Columbia, Maryland 24105,
                  Attn: Corporate Trust - Newcastle 2007-1

                  (j)      in the case of the Securities Administrator:

                  Wells Fargo Bank, N.A,
                  Sixth Street and Marquette Avenue
                  Minneapolis, Minnesota 55479

                  (k)      in the case of the Custodian:

                  Wells Fargo Bank, N.A,
                  24 Executive Park, Suite 200
                  Irvine, CA 92614
                  Attn: Corporate Trust - Newcastle 2007-01

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

                  Section 7.04.     Severability of Provisions.

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

                  Section 7.05.     Third-Party Beneficiaries.

                  This  Agreement  will inure to the benefit of and be binding  upon the  parties  hereto,
the Noteholders,  the Owner Trustee,  the Indenture Trustee and their respective  successors and permitted
assigns.  Except  as  otherwise  provided  in this  Agreement,  no other  Person  will  have any  right or
obligation  hereunder.  The  Indenture  Trustee shall have the right to exercise all rights of the Issuing
Entity under this Agreement.

                  Section 7.06.     Counterparts.

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

                  Section 7.07.     Effect of Headings and Table of Contents.

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

                  Section 7.08.     Termination.

                  The respective  obligations and  responsibilities of the Servicer and the Issuing Entity
created hereby shall terminate upon the  satisfaction  and discharge of the Indenture  pursuant to Section
4.10 thereof.

                  Section 7.09.     No Petition.

                  The  Servicer,  by entering  into this  Agreement,  hereby  covenants and agrees that it
will not at any time institute  against the Depositor or the Issuing  Entity,  or join in any  institution
against  the  Issuing  Entity,  any  bankruptcy  proceedings  under any  United  States  federal  or state
bankruptcy  or similar law in connection  with any  obligations  of the  Depositor or the Issuing  Entity.
This section shall survive the termination of this Agreement by one year.

                  Section 7.10.     No Recourse.

                  The  Servicer  acknowledges  that no recourse  may be had against the  Depositor  or the
Issuing Entity, except as may be expressly set forth in this Agreement.

                  Section 7.11.     Indenture Trustee Rights.

                  The  Indenture  Trustee shall be entitled to the same rights,  protections,  indemnities
and immunities afforded to it under the Indenture as if specifically set forth herein.

                  Section 7.12.     Compliance.

                  In order to comply with its duties under the U.S.A.  Patriot Act, the Indenture  Trustee
may obtain and verify certain  information and documentation  from the Servicer or any other party hereto,
including but not limited to such such party's name, address, and other identifying information.

                  Section 7.13.     Intention of the Parties and Interpretation.

                  Each of the parties  acknowledges  and agrees that the  purpose of Sections  3.20,  3.21
and   4.02 of this  Agreement  is to  facilitate  compliance  by  the Depositor  with  the  provisions  of
Regulation AB  promulgated  by the Securities  and Exchange  Commission  under the 1934 Act (17 C.F.R.  §§
229.1100  -  229.1123),  as such  may be  amended  from  time to time and  subject  to  clarification  and
interpretive  advice as may be issued by the staff of the Securities and Exchange  Commission from time to
time.  Therefore,  each of the parties agrees that (a) the  obligations of the parties  hereunder shall be
interpreted in such a manner as to accomplish that purpose,  (b) the parties'  obligations  hereunder will
be supplemented and modified as necessary to be consistent with any such amendments,  interpretive  advice
or guidance,  convention or consensus among active  participants in the asset-backed  securities  markets,
advice of counsel,  or otherwise in respect of the  requirements  of Regulation  AB, (c) the parties shall
comply  with  reasonable   requests  made  by  the Depositor  for  delivery  of  additional  or  different
information  as  the Depositor  may determine in good faith is necessary to comply with the  provisions of
Regulation  AB, and (d) no  amendment  of this  Agreement  shall be required to effect any such changes in
the parties'  obligations as are necessary to accommodate  evolving  interpretations  of the provisions of
Regulation AB.

                                               ARTICLE VIII

                                       DUTIES OF THE ADMINISTRATOR

                  Section 8.01.     Administrative Duties.

                  (a)      Duties with Respect to the Indenture.  The Administrator  shall perform all its
duties and the duties of the Issuing  Entity under the Indenture.  In addition,  the  Administrator  shall
consult  with the Owner  Trustee  as the  Administrator  deems  appropriate  regarding  the  duties of the
Issuing  Entity under the  Indenture.  The  Administrator  shall  monitor the  performance  of the Issuing
Entity and shall advise the Owner  Trustee  when action is  necessary to comply with the Issuing  Entity's
duties under the Indenture.  The Administrator  shall prepare for execution by the Issuing Entity or shall
cause the preparation by other appropriate Persons of all such documents,  reports, filings,  instruments,
Notes and opinions as it shall be the duty of the Issuing Entity to prepare,  file or deliver  pursuant to
the Indenture.  In furtherance of the foregoing,  the  Administrator  shall take all necessary action that
is the duty of the Issuing Entity to take pursuant to the Indenture.

                  (b)      Duties with Respect to the Issuing Entity.

                           (i)      In  addition  to the  duties  of the  Administrator  set forth in this
         Agreement or any of the Basic Documents,  the  Administrator  shall perform such calculations and
         shall  prepare  for  execution  by the  Issuing  Entity or the Owner  Trustee or shall  cause the
         preparation by other appropriate Persons of all such documents,  reports,  filings,  instruments,
         certificates  and opinions as it shall be the duty of the Issuing  Entity or the Owner Trustee to
         prepare,  file or deliver  pursuant  to this  Agreement  or any of the Basic  Documents  or under
         state and  federal  tax and  securities  laws  (including,  but not  limited  to, UCC  filings in
         applicable jurisdictions and annual compliance  certificates,  if any), and at the request of the
         Owner Trustee or the Indenture  Trustee shall take all appropriate  action that it is the duty of
         the  Issuing  Entity  to take  pursuant  to this  Agreement  or any of the  Basic  Documents.  In
         accordance  with the  directions of the Issuing Entity or the Owner  Trustee,  the  Administrator
         shall  administer,  perform or supervise the  performance of such other  activities in connection
         with the Notes  (including  the  Basic  Documents)  as are not  covered  by any of the  foregoing
         provisions and as are expressly  requested by the Issuing  Entity,  the Indenture  Trustee or the
         Owner Trustee.

                           (ii)     Notwithstanding  anything  in  this  Agreement  or any  of  the  Basic
         Documents to the contrary,  the  Administrator  shall be responsible  for promptly  notifying the
         Owner Trustee and  Certificate  Paying Agent in the event that any  withholding tax is imposed on
         the Issuing  Entity's  payments (or  allocations  of income) to an Owner (as defined in the Trust
         Agreement) as  contemplated in Section 5.03 of the Trust  Agreement.  Any such notice shall be in
         writing  and  specify  the amount of any  withholding  tax  required  to be withheld by the Owner
         Trustee or the Certificate Paying Agent pursuant to such provision.

                           (iii)    In carrying out the foregoing  duties or any of its other  obligations
         under this Agreement,  the  Administrator may enter into transactions with or otherwise deal with
         any of its Affiliates;  provided,  however,  that the terms of any such  transactions or dealings
         shall be in accordance  with any  directions  received  from the Issuing  Entity and shall be, in
         the  Administrator's  opinion,  no less favorable to the Issuing  Entity in any material  respect
         than with terms made available to unrelated third parties.

                  (c)      Tax Matters.  The Administrator  shall prepare, on behalf of the Owner Trustee,
financial  statements  and such annual or other  reports of the Issuing  Entity as are  necessary  for the
preparation  by the  Securities  Administrator  of tax  returns  and  information  reports as  provided in
Section 5.03 of the Trust Agreement, including, without limitation, Form 1099.

                  (d)      Non-Ministerial  Matters.  With  respect  to  matters  that  in the  reasonable
judgment of the Administrator are  non-ministerial,  the Administrator  shall not take any action pursuant
to this Article VIII unless within a reasonable time before the taking of such action,  the  Administrator
shall have  notified the Owner  Trustee and the  Indenture  Trustee of the  proposed  action and the Owner
Trustee and,  with respect to items (A),  (B), (C) and (D) below,  the  Indenture  Trustee  shall not have
withheld  consent or  provided  an  alternative  direction.  For the  purpose of the  preceding  sentence,
"non-ministerial matters" shall include:

                           (A)      the amendment of or any supplement to the Indenture;

                           (B)      the  initiation of any claim or lawsuit by the Issuing  Entity and the
                  compromise  of any action,  claim or lawsuit  brought by or against  the Issuing  Entity
                  (other than in connection with the collection of the Mortgage Loans);

                           (C)      the amendment,  change or modification of this Agreement or any of the
                  Basic Documents to which the Indenture Trustee or the Owner Trustee,  as applicable,  is
                  a party;

                           (D)      the appointment of successor  Certificate  Paying Agents and successor
                  Indenture  Trustees pursuant to the Indenture or the appointment of successor  Servicers
                  or the  consent to the  assignment  by the  Certificate  Registrar,  Certificate  Paying
                  Agent or Indenture Trustee of its obligations under the Indenture; and

                           (E)      the removal of the Indenture Trustee.

                  (e)      Sponsor  shall  act as  Administrator.  By  execution  of this  Agreement,  the
Sponsor agrees to be bound as  Administrator  and shall perform the  obligations of the  Administrator  as
described herein.

                  Section 8.02.     Records.

                  The  Administrator  shall maintain  appropriate books of account and records relating to
services  performed  under this  Agreement,  which books of account and records  shall be  accessible  for
inspection by the Issuing Entity, the Indenture Trustee, the Securities  Administrator,  the Depositor and
the Owner Trustee at any time during normal business hours.

                  Section 8.03.     Additional Information to be Furnished.

                  The  Administrator  shall  furnish to the Issuing  Entity,  the Indenture  Trustee,  the
Securities  Administrator  and the Owner Trustee from time to time such additional  information  regarding
the  Mortgage  Loans  and  the  Notes  as the  Issuing  Entity,  the  Indenture  Trustee,  the  Securities
Administrator or the Owner Trustee shall reasonably request.

                  Section 8.04.     No Recourse to Owner Trustee.

                  It is expressly  understood  and agreed by the parties hereto that (a) this Agreement is
executed and delivered by Wilmington Trust Company,  not  individually or personally,  but solely as Owner
Trustee of  Newcastle  Mortgage  Securities  Trust  2007-1,  in the  exercise of the powers and  authority
conferred and vested in it, (b) each of the  representations,  undertakings and agreements  herein made on
the part of the Issuing  Entity is made and intended  not as personal  representations,  undertakings  and
agreements  by  Wilmington  Trust  Company but is made and  intended  for the purpose for binding only the
Issuing  Entity,  (c) nothing herein  contained shall be construed as creating any liability of Wilmington
Trust Company,  individually or personally,  to perform any covenant either expressed or implied contained
herein,  all such  liability,  if any,  being  expressly  waived by the  parties  hereto and by any Person
claiming by, through or under the parties hereto and (d) under no  circumstances  shall  Wilmington  Trust
Company be personally  liable for the payment of any  indebtedness or expenses of the Issuing Entity or be
liable  for the  breach or  failure  of any  obligation,  representation,  warranty  or  covenant  made or
undertaken by the Issuing Entity under this Agreement or any other related documents.

                  IN WITNESS  WHEREOF,  the parties  hereto  have caused this Sale and Sale and  Servicing
Agreement to be duly executed by their respective  officers or representatives  all as of the day and year
first above written.

                                                  BEAR STEARNS ASSET BACKED SECURITIES I LLC
                                                  as Depositor

                                                  By:______________________________________________
                                                  Name:
                                                  Title:

                                                  NATIONSTAR MORTGAGE LLC,
                                                  as Servicer

                                                  By:______________________________________________
                                                  Name:
                                                  Title:

                                                  NEWCASTLE MORTGAGE SECURITIES TRUST 2007-1, as Issuing Entity

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

                                                  By:______________________________________________
                                                  Name:
                                                  Title:

                                                  THE BANK OF NEW YORK,
                                                  not in its individual capacity, but solely as as Indenture Trustee

                                                  By:______________________________________________
                                                  Name:
                                                  Title:

                                                  WELLS FARGO BANK, N.A.
                                                  as Master Servicer, Securities Administrator and Custodian

                                                  By:______________________________________________
                                                  Name:
                                                  Title:

For purposes of Article IV and Article VIII:
NEWCASTLE INVESTMENT CORP.,
as Sponsor and Administrator

By:_________________________________________
Name:
Title:

                                                EXHIBIT A

                                       FORM OF ASSIGNMENT AGREEMENT

                                                EXHIBIT B

                                          MORTGAGE LOAN SCHEDULE

                                                EXHIBIT C

                                       FORM OF REQUEST FOR RELEASE

Wells Fargo Bank, N.A.
24 Executive Park, Suite 100
Irvine, California 92614
Attn: Mortgage Document Custody

         Re:      Sale and  Servicing  Agreement,  dated as of July 12,  2007,  among Bear  Stearns  Asset
                  Backed  Securities  I LLC,  Newcastle  Mortgage  Securities  Trust  2007-1,  Nationstar
                  Mortgage LLC, Wells Fargo Bank, N.A and The Bank of New York

                  In connection with the  administration  of the Mortgage Loans held by you, as Custodian,
pursuant  to the  above-captioned  Sale and  Servicing  Agreement,  we  request  the  release,  and hereby
acknowledge  receipt,  of the  Mortgage  File  for the  Mortgage  Loan  described  below,  for the  reason
indicated.

Mortgage Loan Number:

Mortgagor Name, Address & Zip Code:

Reason for Requesting Documents (check one):

____                           1.       Mortgage Paid in Full

____                           2.       Foreclosure

____                           3.       Substitution

____                           4.       Other Liquidation

____                           5.       Nonliquidation Reason:______________________

                                                                       By:__________________________

                                                                       (authorized signer)

                                                                       [Servicer] [Master Servicer]:
                                                                       ______________________

                                                                       Address:_______________________

                                                                       Date: ______________________

Custodian
Wells Fargo Bank, N.A.
Please acknowledge the execution of the above request by your signature and date below:

__________________________                                             ______________________
Signature                                                              Date

Documents returned to Custodian:

__________________________                                             _____________________
Custodian                                                              Date

                                               EXHIBIT D-1

                                FORM OF CUSTODIAN'S INITIAL CERTIFICATION

                                                                                [Date]

Newcastle Mortgage Securities Trust 2007-1
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19990-0001
Attention: Corporate Trust Administration

The Bank of New York,
101 Barclay Street, Floor 4W
New York, New York  10286

Bear Stearns Asset Backed Securities I LLC
383 Madison Avenue
New York, New York, 10179
Attention: General Counsel

Nationstar Mortgage LLC
350 Highland Drive
Lewisville, Texas 75067

                  Re:      Sale and  Servicing  Agreement,  dated as of July 12, 2007,  among Bear Stearns
                           Asset Backed  Securities I LLC,  Newcastle  Mortgage  Securities  Trust 2007-1,
                           Nationstar Mortgage LLC, Wells Fargo Bank, N.A and The Bank of New York

Ladies and Gentlemen:

                  In  accordance  with  Section  2.01(i)-(vi)  of the Sale and  Servicing  Agreement,  the
undersigned,  as  Custodian,  hereby  certifies  that as to each Mortgage Loan listed in the Mortgage Loan
Schedule  (other than any Mortgage Loan paid in full or any Mortgage Loan  specifically  identified in the
Exception  Report  annexed  hereto  as  not  being  covered  by  such  certification)  (i)  all  documents
constituting  part of such Mortgage File (other than such documents  described in Section  2.01(vi) of the
Sale and  Servicing  Agreement)  required  to be  delivered  to it pursuant  to the  Agreement  are in its
possession,  (ii) such  documents  have been reviewed by it and appear regular on their face and relate to
such Mortgage Loan and (iii) based on its  examination  and only as to the foregoing,  the information set
forth in the Mortgage Loan Schedule that corresponds to items (i), (iii),  (x), (xi),  (xii),  (xviii) and
(xxv) (but only as to Gross  Margin  and  Maximum  Mortgage  Rate) of the  definition  of  "Mortgage  Loan
Schedule" accurately reflects information set forth in the Mortgage File.

                  The Custodian makes no representations as to: (i) the validity,  legality,  sufficiency,
enforceability,  recordability  or genuineness  of any of the documents  contained in the Mortgage File of
any  of  the  Mortgage  Loans  identified  on  the  Mortgage  Loan  Schedule,   (ii)  the  collectability,
insurability,  effectiveness  or suitability of any such Mortgage Loan, or (iii) whether any Mortgage File
included  any of the  documents  specified  in  clause  (vi) of  Section  2.01 of the Sale  and  Servicing
Agreement.

                  Capitalized  words and phrases used herein shall have the respective  meanings  assigned
to them in the above-captioned Indenture.

                                                     WELLS FARGO BANK, N.A., as Custodian

                                                     By:_________________________________
                                                     Name:
                                                     Title:

                                               EXHIBIT D-2

                                 FORM OF CUSTODIAN'S FINAL CERTIFICATION

                                                                                [Date]

Newcastle Mortgage Securities Trust 2007-1
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19990-0001
Attention: Corporate Trust Administration

The Bank of New York,
101 Barclay Street, Floor 4W
New York, New York  10286

Bear Stearns Asset Backed Securities I LLC
383 Madison Avenue
New York, New York, 10179
Attention: General Counsel

Nationstar Mortgage LLC
350 Highland Drive
Lewisville, Texas 75067

                  Re:      Sale and  Servicing  Agreement,  dated as of July 12, 2007,  among Bear Stearns
                           Asset Backed  Securities I LLC,  Newcastle  Mortgage  Securities  Trust 2007-1,
                           Nationstar Mortgage LLC, Wells Fargo Bank, N.A and The Bank of New York

Ladies and Gentlemen:

                  In  accordance  with  Section  2.01(i)-(vi)  of the Sale and  Servicing  Agreement,  the
undersigned,  as  Custodian,  hereby  certifies  that as to each Mortgage Loan listed in the Mortgage Loan
Schedule  (other than any Mortgage Loan paid in full or any Mortgage Loan  specifically  identified in the
Exception  Report  annexed  hereto  as  not  being  covered  by  such  certification)  (i)  all  documents
constituting  part of such Mortgage File (other than such documents  described in Section  2.01(vi) of the
Sale and  Servicing  Agreement)  required  to be  delivered  to it  pursuant  to the  Sale  and  Servicing
Agreement are in its possession.

                  The  undersigned  hereby  certifies  that as to each  Mortgage  Loan  identified  on the
Mortgage  Loan  Schedule,  other than any Mortgage  Loan listed on Schedule I hereto,  it has reviewed the
documents  listed above and has determined  that each such document  appears to be regular on its face and
relates to such Mortgage Loan and, based on an examination of such  documents,  the  information set forth
in (i) of the definition of Mortgage Loan Schedule accurately reflects information in the Mortgage File.

                  We have made no  independent  examination  of any  documents  contained in each Mortgage
File  beyond  the  review  specifically  required  in  the  Sale  and  Servicing  Agreement.  We  make  no
representations  as  to  (i)  the  validity,  legality,  sufficiency,  recordability,   enforceability  or
genuineness  of any of the  documents  contained in the Mortgage  File  pertaining  to the Mortgage  Loans
identified  on the  Mortgage  Loan  Schedule,  (ii) the  collectability,  insurability,  effectiveness  or
suitability  of any such  Mortgage  Loan or (iii)  whether any Mortgage File includes any of the documents
specified in clause (vi) of Section 2.01 of the Sale and Servicing Agreement.

                  Capitalized  words and phrases used herein shall have the respective  meanings  assigned
to  them  in the  Agreements.  This  Certificate  is  qualified  in all  respects  by the  terms  of  said
Agreements.

                                                     [CUSTODIAN]

                                                     By: ________________________________
                                                     Name:
                                                     Title:

                                                EXHIBIT E

                                       FORM OF LOST NOTE AFFIDAVIT

                  Personally   appeared  before  me  the  undersigned   authority  to  administer   oaths,
_______________________________   who  first   being   duly   sworn   deposes   and  says:   Deponent   is
___________________________     of     ____________________________,     successor     by     merger    to
_________________________  ("Seller")  and  who  has  personal  knowledge  of the  facts  set  out in this
affidavit.

                  On   _________________________________,    ______________________________________    did
execute and deliver a promissory note in the principal amount of $____________________.

                  That said note has been  misplaced or lost through  causes unknown and is presently lost
and  unavailable  after diligent search has been made.  Seller's  records show that an amount of principal
and interest on said note is still presently  outstanding,  due, and unpaid, and Seller is still owner and
holder in due course of said lost note.

                  Seller  executes  this  Affidavit  for the purpose of inducing The Bank of New York,  as
indenture trustee on behalf of Newcastle  Mortgage  Securities Trust 2007-1,  Asset-Backed  Notes,  Series
2007-1, to accept the transfer of the above described loan from Seller.

                  Seller  agrees to indemnify  The Bank of New York  harmless  for any losses  incurred by
such parties resulting from the above described promissory note has been lost or misplaced.

By:

        ________________________________________

        ________________________________________

STATE OF                                 )
                                         )        SS:
COUNTY OF                                )

                  On this ______ day of  ______________,  20_, before me, a Notary Public, in and for said
County and State,  appeared , who  acknowledged  the extension of the foregoing and who,  having been duly
sworn, states that any representations therein contained are true.

                  Witness my hand and Notarial Seal this _________ day of 20__.

_________________________________________

_________________________________________

My commission expires __________________________

                                                EXHIBIT F

                                        FORM OF POWER OF ATTORNEY

                  KNOW  ALL  MEN BY  THESE  PRESENTS,  that  The  Bank of New  York,  a  national  banking
association,  having a place of business at ________________,  as Indenture Trustee (and in no personal or
other representative  capacity),  under the Sale and Servicing Agreement,  dated July __, 2007, among Bear
Stearns Asset Backed Securities I LLC, Newcastle  Mortgage  Securities Trust 2007-1,  Nationstar  Mortgage
LLC,  Wells  Fargo  Bank,  N.A and The Bank of New York,  as  Indenture  Trustee  (as  amended,  restated,
supplemented  or otherwise  modified from time to time,  the  "Agreement";  capitalized  terms not defined
herein have the  definitions  assigned to such terms in the  Agreement),  relating to  Newcastle  Mortgage
Securities  2007-1,  hereby  appoints  ________________________________,  in its  capacity as the Servicer
under  the  Agreement  as the  Indenture  Trustee's  true  and  lawful  Special  Attorney-in-Fact,  in the
Indenture  Trustee's  name,  place and  stead and for the  Indenture  Trustee's  benefit,  but only in its
capacity  as  Indenture  Trustee  aforesaid,  to perform  all acts and  execute  all  documents  as may be
customary,  necessary and  appropriate to effectuate the following  enumerated  transactions in respect of
any mortgage,  deed of trust,  promissory note or real estate owned from time to time owned  (beneficially
or in title,  whether the  Indenture  Trustee is named therein as mortgagee or  beneficiary  or has become
mortgagee  or  beneficiary  by  virtue  of  endorsement,  assignment  or other  conveyance)  or held by or
registered to the Indenture Trustee (directly or through  custodians or nominees),  or in respect of which
the  Indenture  Trustee has a security  interest or other lien,  all as provided  under the  Agreement and
only to the extent the Indenture  Trustee has an interest  therein under the Agreement,  and in respect of
which  the  Servicer  is  acting  as  servicer  pursuant  to the  Agreement  (collectively  the  "Mortgage
Documents").

                  This  appointment  shall  apply  to the  following  enumerated  transactions  under  the
Agreement only:

                  1.       The  modification or  re-recording of any Mortgage  Document for the purpose of
correcting  it to conform to the  original  intent of the  parties  thereto  or to  correct  title  errors
discovered  after  title  insurance  was issued  and where  such  modification  or  re-recording  does not
adversely affect the lien under the Mortgage Document as insured.

                  2.       The  subordination  of the lien under a Mortgage  Document  to an  easement  in
favor of a public  utility  company or a state or  federal  agency or unit with  powers of eminent  domain
including,  without limitation,  the execution of partial  satisfactions/releases,  partial  reconveyances
and the execution of requests to trustees to accomplish same.

                  3.       The  conveyance  of  the  properties  subject  to a  Mortgage  Document  to the
applicable  mortgage  insurer,  or the closing of the title to the  property to be acquired as real estate
so owned, or conveyance of title to real estate so owned.

                  4.       The  completion of loan  assumption and  modification  agreements in respect of
Mortgage Documents.

                  5.       The  full  or  partial  satisfaction/release  of a  Mortgage  Document  or full
conveyance  upon  payment and  discharge  of all sums  secured  thereby,  including,  without  limitation,
cancellation of the related note.

                  6.       The assignment of any Mortgage  Document,  in connection with the repurchase of
the mortgage loan secured and evidenced thereby.

                  7.       The full  assignment  of a Mortgage  Document upon payment and discharge of all
sums secured thereby in conjunction  with the refinancing  thereof,  including,  without  limitation,  the
assignment of the related note.

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

                  a.       the  substitution  of indenture  trustee(s)  serving under a deed of trust,  in
accordance with state law and the deed of trust;

                  b.       the preparation and issuance of statements of breach or non-performance;

                  c.       the preparation and filing of notices of default and/or notices of sale;

                  d.       the cancellation/rescission of notices of default and/or notices of sale;

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

                  f.       the  preparation  and execution of such other documents and performance of such
other actions as may be necessary under the terms of the Mortgage  Document or state law to  expeditiously
complete said transactions in paragraphs 8(a) through 8(e), above.

                  9.       Demand,  sue for, recover,  collection and receive each and every sum of money,
debt,  account and  interest  (which now is, or hereafter  shall  become due and payable)  belonging to or
claimed by the  Indenture  Trustee under the Mortgage  Documents,  and to use or take any lawful means for
recovery thereof by legal process or otherwise.

                  10.      Endorse  on  behalf  of  the  Indenture  Trustee  all  checks,   drafts  and/or
negotiable instruments made payable to the Indenture Trustee in respect of  the Mortgage Documents.

                  The  Indenture  Trustee gives the Special  Attorney-in-Fact  full power and authority to
execute such  instruments  and to do and perform all and every act and thing necessary and proper to carry
into  effect  the power or powers  granted by this  Limited  Power of  Attorney,  subject to the terms and
conditions  set forth in the  Agreement  including  the  standard of care  applicable  to servicers in the
Agreement,  and hereby does ratify and confirm to what such  Special  Attorney-in-Fact  shall  lawfully do
or cause to be done by authority hereof.

                  This  Power of  Attorney  is  effective  for one (1) year  from the date  hereof  or the
earlier of (i)  revocation  by the  Indenture  Trustee,  (ii) the Attorney  shall no longer be retained on
behalf of the Indenture Trustee or an affiliate of the Indenture  Trustee;  or (iii) the expiration of one
year from the date of execution.

                  The  authority  granted  to  the  attorney-in-fact  by  the  Power  of  Attorney  is not
transferable to any other party or entity.

                  This Agreement  shall be governed by, and construed in accordance  with, the laws of the
State of New York without regard to its conflicts of law principles.

                  IN WITNESS WHEREOF,  the Indenture  Trustee has caused its corporate name and seal to be
hereto  signed and  affixed and these  presents  to be  acknowledged  by its duly  elected and  authorized
officer this ______ day of _________, 200___.

                                                      THE BANK OF NEW YORK,
                                                      as Indenture Trustee

                                                     By:_______________________________
                                                     Name:
                                                     Title:

                                                     WITNESS:

                                                     By:_______________________________
                                                     Name:
                                                     Title:

                                                     WITNESS:

                                                     By:_______________________________
                                                     Name:
                                                     Title:

STATE OF NEW YORK
                           ss:
COUNTY OF NEW YORK

                  On  _______________,  2007, before me, the undersigned,  a Notary Public in and for said
state,  personally  appeared  _______________________,  personally known to me to be the person whose name
is subscribed to the within  instrument  and to be a duly  authorized  and acting Senior Vice President of
The Bank of New York and such person  acknowledged to me that such person  executed the within  instrument
in such  person's  authorized  capacity as a Senior Vice  President  of The Bank of New York,  and that by
such  signature on the within  instrument  the entity upon behalf of which such person acted  executed the
instrument.

                  WITNESS my hand and official seal.

                                                              ______________________________
                                                                       Notary Public

                                               EXHIBIT G-1

               FORM OF CERTIFICATION TO BE PROVIDED BY THE SERVICER TO THE MASTER SERVICER

                                              Certification

         Re:      Newcastle Mortgage Securities Trust 2007-1 (the "Trust" or the "Issuing Entity")
                  Asset-Backed Notes, Series 2007-1

                  I, [identify the certifying individual], certify, that:

                           (i)      1.      I have  reviewed  the  servicer  compliance  statement  of the
         Company  provided in accordance  with Item 1123 of Regulation  AB (the  "Compliance  Statement"),
         the report on  assessment of the Company's  compliance  with the servicing  criteria set forth in
         Item 1122(d) of  Regulation AB (the  "Servicing  Criteria"),  provided in  accordance  with Rules
         13a-18 and 15d-18 under  Securities  Exchange Act of 1934,  as amended (the  "Exchange  Act") and
         Item 1122 of  Regulation  AB (the  "Servicing  Assessment"),  the  registered  public  accounting
         firm's  attestation report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
         Act and Section 1122(b) of Regulation AB (the "Attestation  Report"),  and all servicing reports,
         officer's  certificates and other information  relating to the servicing of the Mortgage Loans by
         the Company  during 200[ ] that were  delivered  by the Company to the  Depositor  and the Master
         Servicer pursuant to the Agreement (collectively, the "Company Servicing Information");

                           (ii)     Based on my knowledge,  the Company Servicing Information,  taken as a
         whole,  does not  contain  any untrue  statement  of a material  fact or omit to state a material
         fact necessary to make the statements  made, in the light of the  circumstances  under which such
         statements  were made, not  misleading  with respect to the period of time covered by the Company
         Servicing Information;

                           (iii)    Based  on my  knowledge,  all of  the  Company  Servicing  Information
         required to be provided by the Company  under the  Agreement  has been  provided to the Depositor
         and the Master Servicer;

                           (iv)     I am  responsible  for  reviewing  the  activities  performed  by  the
         Company as servicer  under the  Agreement,  and based on my knowledge and the  compliance  review
         conducted in  preparing  the  Compliance  Statement  and except as  disclosed  in the  Compliance
         Statement,  the Servicing  Assessment or the  Attestation  Report,  the Company has fulfilled its
         obligations under the Agreement in all material respects; and

                           (v)      The  Compliance  Statement  required  to be  delivered  by the Company
         pursuant to this Agreement,  and the Servicing  Assessment and Attestation  Report required to be
         provided by the Company  and by any  Subservicer  and  Subcontractor  pursuant to the  Agreement,
         have  been  provided  to the  Depositor  and the  Master  Servicer.  Any  material  instances  of
         noncompliance  described  in such reports have been  disclosed  to the  Depositor  and the Master
         Servicer.  Any material instance of noncompliance  with the Servicing Criteria has been disclosed
         in such reports.

Date:    ___________________

                                                            NATIONSTAR MORTGAGE LLC

                                                            By:_________________________________
                                                            Name:
                                                            Title:
                                                            Date:

                                               EXHIBIT G-2

                         FORM CERTIFICATION TO BE PROVIDED BY THE MASTER SERVICER
                                              WITH FORM 10-K

             Newcastle Mortgage Securities Trust 2007-1 (the "Trust" or the "Issuing Entity")
                                             Asset-Backed Notes, Series 2007-1

                  I, [identify the certifying individual], certify that:

                  1.       I have reviewed  this annual report on Form 10-K,  and all reports on Form 10-D
required  to be filed in respect  of the period  covered  by this  report on Form 10-K  [identify  issuing
entity]  (i.e.,  the name of the specific deal to which this  certification  relates  rather than just the
name of the Depositor)] (the "Exchange Act periodic reports");

                  2.       Based on my  knowledge,  the Exchange Act periodic  reports,  taken as a whole,
do not contain any untrue  statement  of a material  fact or omit to state a material  fact  necessary  to
make the  statements  made,  in light of the  circumstances  under which such  statements  were made,  not
misleading with respect to the period covered by this report;

                  3.       Based  on  my  knowledge,   all  of  the  distribution,   servicing  and  other
information  required to be provided  under Form 10-D for the period covered by this report is included in
the Exchange Act periodic reports;

                  4.       I am  responsible  for reviewing the  activities  performed by the servicer and
based on my knowledge and the compliance review conducted in preparing the servicer  compliance  statement
required in this report  under Item 1123 of  Regulation  AB, and except as  disclosed  in the Exchange Act
periodic  reports,  the  servicer has  fulfilled  its  obligations  under the  servicing  agreement in all
material respects; and

                  5.       All of the reports on  assessment  of compliance  with  servicing  criteria for
asset-backed  securities and their related  attestation reports on assessment of compliance with servicing
criteria for asset-backed  securities  required to be included in this report in accordance with Item 1122
of  Regulation  AB and  Exchange  Act Rules  13a-18 and 15d-18  have been  included  as an exhibit to this
report,  except as otherwise  disclosed in this report. Any material instances of noncompliance  described
in such reports have been disclosed in this report on Form 10-K.

                  In giving the  certifications  above, I have reasonably  relied on information  provided
to me by the following unaffiliated party: Nationstar Mortgage, LLC.

                                                     WELLS FARGO BANK, N.A.

                                                     By:____________________________________
                                                     Name:
                                                     Title:
                                                     Date:

                                                EXHIBIT H
                                    SERVICING CRITERIA TO BE ADDRESSED
                                       IN ASSESSMENT OF COMPLIANCE

Definitions
Primary Servicer - transaction party having borrower contact
Master Servicer - aggregator of pool assets
Securities Administrator - waterfall calculator (may be the Master Servicer, or may be the Servicer)
Custodian - safe keeper of pool assets
Paying Agent - distributor of funds to ultimate investor
Indenture Trustee - fiduciary of the transaction

Note: The  definitions  above  describe the essential  function that the party  performs,  rather than the
party's title.

Where there are  multiple  checks for  criteria  the  attesting  party will  identify in their  management
assertion that they are attesting only to the portion of the  distribution  chain they are responsible for
in the related transaction agreements.

Key:      X - obligation
         XX - only  needs to be  provided  if  transaction  documents  require  custodial  accounts  to be
              maintained at a federally insured depository institution
        XXX - will be provided by entity acting as custodian
        [X] - under consideration for obligation

_______________________________________________________________________________________________________________________
                                                                              Master
                                                                             Servicer/
                                                                Primary     Securities    Indenture
 Reg AB Reference              Servicing Criteria               Servicer   Administrator   Trustee         Custodian
_______________________________________________________________________________________________________________________
                    General Servicing Considerations
_______________________________________________________________________________________________________________________
1122(d)(1)(i)       Policies and  procedures  are instituted       X             X
                    to  monitor  any  performance  or  other
                    triggers   and   events  of  default  in
                    accordance    with    the    transaction
                    agreements.
_______________________________________________________________________________________________________________________
1122(d)(1)(ii)      If  any  material  servicing  activities       X             X
                    are   outsourced   to   third   parties,
                    policies and  procedures  are instituted
                    to    monitor    the    third    party's
                    performance  and  compliance  with  such
                    servicing activities.
_______________________________________________________________________________________________________________________
                    Any   requirements  in  the  transaction
                    agreements   to   maintain   a   back-up
                    servicer   for  the  Pool   Assets   are
1122(d)(1)(iii)     maintained.
_______________________________________________________________________________________________________________________
1122(d)(1)(iv)      A   fidelity   bond   and   errors   and       X             X
                    omissions  policy  is in  effect  on the
                    party  participating  in  the  servicing
                    function    throughout   the   reporting
                    period  in  the   amount   of   coverage
                    required by and  otherwise in accordance
                    with  the   terms  of  the   transaction
                    agreements.
_______________________________________________________________________________________________________________________
                    Cash Collection and Administration
_______________________________________________________________________________________________________________________
1122(d)(2)(i)       Payments  on pool  assets are  deposited       X             X
                    into  the  appropriate   custodial  bank
                    accounts  and  related   bank   clearing
                    accounts no more than two business  days
                    following receipt,  or such other number
                    of  days  specified  in the  transaction
                    agreements.
_______________________________________________________________________________________________________________________
                    Disbursements  made via wire transfer on       X             X
                    behalf of an obligor  or to an  investor
1122(d)(2)(ii)      are made only by authorized personnel.
_______________________________________________________________________________________________________________________
                    Advances   of   funds   or    guarantees       X             X
                    regarding  collections,  cash  flows  or
                    paymnets,  and  any  interest  or  other
                    fees  charged  for  such  advances,  are
                    made,    reviewed    and   approved   as
                    specified     in     the     transaction
1122(d)(2)(iii)     agreements.
_______________________________________________________________________________________________________________________
                    The    related    accounts    for    the       X             X
                    transaction,   such  as   cash   reserve
                    accounts  or accounts  established  as a
                    form  of  over  collateralization,   are
                    separately    maintained   (e.g.,   with
                    respect to  commingling  of cash) as set
1122(d)(2)(iv)      forth in the transaction agreements.
_______________________________________________________________________________________________________________________
                    Each custodial  account is maintained at       X             X
                    a    federally    insured     depository
                    institution   as   set   forth   in  the
                    transaction agreements.  For purposes of
                    this   criterion,   "federally   insured
                    depository  institution" with respect to
                    a foreign financial  institution means a
                    foreign   financial   institution   that
                    meets   the    requirements    of   Rule
                    13k-1(b)(1) of the  Securities  Exchange
1122(d)(2)(v)       Act.
_______________________________________________________________________________________________________________________
                    Unissued  checks are  safeguarded  so as       X
1122(d)(2)(vi)      to prevent unauthorized access.
_______________________________________________________________________________________________________________________
1122(d)(2)(vii)     Reconciliations   are   prepared   on  a       X             X
                    monthly   basis  for  all   asset-backed
                    securities    related   bank   accounts,
                    including    custodial    accounts   and
                    related bank  clearing  accounts.  These
                    reconciliations  are (A)  mathematically
                    accurate;   (B)   prepared   within   30
                    calendar  days after the bank  statement
                    cutoff  date,  or such  other  number of
                    days   specified   in  the   transaction
                    agreements;  (C)  reviewed  and approved
                    by  someone  other  than the  person who
                    prepared  the  reconciliation;  and  (D)
                    contain   explanations  for  reconciling
                    items.   These   reconciling  items  are
                    resolved  within  90  calendar  days  of
                    their original  identification,  or such
                    other  number of days  specified  in the
                    transaction agreements.
_______________________________________________________________________________________________________________________
                    Investor Remittances and Reporting
_______________________________________________________________________________________________________________________
1122(d)(3)(i)       Reports to  investors,  including  those       X             X
                    to be  filed  with the  Commission,  are
                    maintained   in   accordance   with  the
                    transaction  agreements  and  applicable
                    Commission  requirements.  Specifically,
                    such   reports   (A)  are   prepared  in
                    accordance  with  timeframes  and  other
                    terms  set  forth  in  the   transaction
                    agreements;   (B)  provide   information
                    calculated in accordance  with the terms
                    specified     in     the     transaction
                    agreements;   (C)  are  filed  with  the
                    Commission  as required by its rules and
                    regulations;    and   (D)   agree   with
                    investors'  or the  indenture  trustee's
                    records   as   to   the   total   unpaid
                    principal  balance  and  number  of Pool
                    Assets serviced by the Servicer.
_______________________________________________________________________________________________________________________
                    Amounts due to investors  are  allocated       X             X
                    and   remitted   in   accordance    with
                    timeframes,  distribution  priority  and
                    other    terms    set   forth   in   the
1122(d)(3)(ii)      transaction agreements.
_______________________________________________________________________________________________________________________
                    Disbursements  made to an  investor  are       X             X
                    posted  within two business  days to the
                    Servicer's  investor  records,  or  such
                    other  number of days  specified  in the
1122(d)(3)(iii)     transaction agreements.
_______________________________________________________________________________________________________________________
                    Amounts  remitted to  investors  per the       X             X
                    investor  reports  agree with  cancelled
                    checks,  or other  form of  payment,  or
1122(d)(3)(iv)      custodial bank statements.
_______________________________________________________________________________________________________________________
                    Pool Asset Administration
_______________________________________________________________________________________________________________________
1122(d)(4)(i)       Collateral  or  security  on pool assets       X                                          X
                    is   maintained   as   required  by  the
                    transaction  agreements  or related pool
                    asset documents.
_______________________________________________________________________________________________________________________
1122(d)(4)(ii)      Pool  assets and related  documents  are       X                                          X
                    safeguarded    as    required   by   the
                    transaction agreements
_______________________________________________________________________________________________________________________
1122(d)(4)(iii)     Any      additions,      removals     or       X
                    substitutions  to  the  asset  pool  are
                    made,    reviewed    and   approved   in
                    accordance   with  any   conditions   or
                    requirements    in    the    transaction
                    agreements.
_______________________________________________________________________________________________________________________
1122(d)(4)(iv)      Payments on pool assets,  including  any       X
                    payoffs,  made in  accordance  with  the
                    related pool asset  documents are posted
                    to  the   Servicer's   obligor   records
                    maintained  no more  than  two  business
                    days  after   receipt,   or  such  other
                    number   of   days   specified   in  the
                    transaction  agreements,  and  allocated
                    to  principal,  interest  or other items
                    (e.g.,  escrow) in  accordance  with the
                    related pool asset documents.
_______________________________________________________________________________________________________________________
                    The  Servicer's  records  regarding  the       X
                    pool  assets  agree with the  Servicer's
                    records  with  respect  to an  obligor's
1122(d)(4)(v)       unpaid principal balance.
_______________________________________________________________________________________________________________________
                    Changes  with  respect  to the  terms or       X
                    status  of  an  obligor's   pool  assets
                    (e.g., loan  modifications or re-agings)
                    are  made,   reviewed  and  approved  by
                    authorized  personnel in accordance with
                    the  transaction  agreements and related
1122(d)(4)(vi)      pool asset documents.
_______________________________________________________________________________________________________________________
                    Loss  mitigation  or  recovery   actions       X
                    (e.g., forbearance plans,  modifications
                    and   deeds  in  lieu  of   foreclosure,
                    foreclosures   and   repossessions,   as
                    applicable)  are  initiated,   conducted
                    and  concluded  in  accordance  with the
                    timeframes    or   other    requirements
                    established    by    the     transaction
1122(d)(4)(vii)     agreements.
_______________________________________________________________________________________________________________________
1122(d)(4)(viii)    Records  documenting  collection efforts       X
                    are maintained  during the period a pool
                    asset is delinquent  in accordance  with
                    the   transaction    agreements.    Such
                    records  are  maintained  on at  least a
                    monthly  basis,  or  such  other  period
                    specified     in     the     transaction
                    agreements,  and  describe  the entity's
                    activities  in   monitoring   delinquent
                    pool  assets  including,   for  example,
                    phone   calls,   letters   and   payment
                    rescheduling   plans  in   cases   where
                    delinquency is deemed  temporary  (e.g.,
                    illness or unemployment).
_______________________________________________________________________________________________________________________
1122(d)(4)(ix)      Adjustments  to interest  rates or rates       X
                    of return for pool assets with  variable
                    rates are computed  based on the related
                    pool asset documents.
_______________________________________________________________________________________________________________________
1122(d)(4)(x)       Regarding  any  funds  held in trust for       X
                    an  obligor  (such as escrow  accounts):
                    (A)  such   funds   are   analyzed,   in
                    accordance   with  the  obligor's   pool
                    asset  documents,  on at least an annual
                    basis,  or such other  period  specified
                    in  the  transaction   agreements;   (B)
                    interest  on  such  funds  is  paid,  or
                    credited,   to  obligors  in  accordance
                    with  applicable  pool  asset  documents
                    and state  laws;  and (C) such funds are
                    returned  to  the   obligor   within  30
                    calendar  days of full  repayment of the
                    related  pool  assets,   or  such  other
                    number   of   days   specified   in  the
                    transaction agreements.
_______________________________________________________________________________________________________________________
                    Payments  made on behalf  of an  obligor       X
                    (such as tax or insurance  payments) are
                    made on or before  the  related  penalty
                    or  expiration  dates,  as  indicated on
                    the  appropriate  bills or  notices  for
                    such   payments,   provided   that  such
                    support   has  been   received   by  the
                    servicer  at  least  30  calendar   days
                    prior  to  these  dates,  or such  other
                    number   of   days   specified   in  the
1122(d)(4)(xi)      transaction agreements.
_______________________________________________________________________________________________________________________
                    Any   late    payment    penalties    in       X
                    connection  with any  payment to be made
                    on  behalf of an  obligor  are paid from
                    the Servicer's  funds and not charged to
                    the  obligor,  unless  the late  payment
                    was  due  to  the  obligor's   error  or
1122(d)(4)(xii)     omission.
_______________________________________________________________________________________________________________________
                    Disbursements   made  on  behalf  of  an       X
                    obligor are posted  within two  business
                    days    to   the    obligor's    records
                    maintained  by  the  servicer,  or  such
                    other  number of days  specified  in the
1122(d)(4)(xiii)    transaction agreements.
_______________________________________________________________________________________________________________________
                    Delinquencies,      charge-offs      and       X             X
                    uncollectible  accounts  are  recognized
                    and  recorded  in  accordance  with  the
1122(d)(4)(xiv)     transaction agreements.
_______________________________________________________________________________________________________________________
                    Any   external   enhancement   or  other                     X
                    support,  identified in Item  1114(a)(1)
                    through  (3) or Item 1115 of  Regulation
                    AB,  is  maintained  as set forth in the
1122(d)(4)(xv)      transaction agreements.
_______________________________________________________________________________________________________________________

                                                EXHIBIT I

                                    FORM 10-D, FORM 8-K AND FORM 10-K
                                         REPORTING RESPONSIBILITY

As to each item  described  below,  the entity  indicated  as the  Responsible  Entity  shall be primarily
responsible for reporting the  information to the Securities  Administrator  pursuant to Section  4.02(b).
If the Securities  Administrator  is indicated below as to any item, then the Securities  Administrator is
primarily responsible for obtaining that information.

Under Item 1 of Form 10-D:  a) items  marked  "7.05  statement"  are  satisfied  by the  provision  of the
periodic  Payment  Date  statement  under  Section  7.05  of the  Indenture,  provided  by the  Securities
Administrator  based on  information  received from the  Servicer;  and b) items marked "Form 10-D report"
are required to be in the Form 10-D report but not the 7.05  statement,  provided by the party  indicated.
Information under all other Items of Form 10-D is to be included in the Form 10-D report.

    Form           Item                         Description                              Responsible Entity
_______________________________________________________________________________________________________________________
10-D           Must be filed within 15 days of the Payment Date.
_______________________________________________________________________________________________________________________
               1             Distribution and Pool Performance Information
_______________________________________________________________________________________________________________________
                             Item 1121(a) - Distribution  and Pool  Performance
                             Information
_______________________________________________________________________________________________________________________
                             (1) Any  applicable  record dates,  accrual dates,  7.05 statement
                             determination  dates for calculating  payments and
                             actual payment dates for the payment period.
_______________________________________________________________________________________________________________________
                             (2) Cash flows  received  and the sources  thereof  7.05 statement
                             for payments, fees and expenses.
_______________________________________________________________________________________________________________________
                             (3)  Calculated  amounts and  distribution  of the  7.05 statement
                             flow of funds for the period  itemized by type and
                             priority of payment, including:
_______________________________________________________________________________________________________________________
                                      (i) Fees or  expenses  accrued  and paid,  7.05 statement
                             with an  identification  of the general purpose of
                             such  fees and the  party  receiving  such fees or
                             expenses.
_______________________________________________________________________________________________________________________
                                      (ii)   Payments   accrued  or  paid  with  7.05 statement
                             respect   to    enhancement   or   other   support
                             identified  in Item 1114 of Regulation AB (such as
                             insurance    premiums    or   other    enhancement
                             maintenance  fees),  with an identification of the
                             general  purpose  of such  payments  and the party
                             receiving such payments.
_______________________________________________________________________________________________________________________
                                      (iii)   Principal,   interest  and  other  7.05 statement
                             distributions    accrued    and    paid   on   the
                             asset-backed  securities  by type  and by class or
                             series and any  principal  or interest  shortfalls
                             or carryovers.
_______________________________________________________________________________________________________________________
                                      (iv) The  amount of  excess  cash flow or  7.05 statement
                             excess spread and the  disposition  of excess cash
                             flow.
_______________________________________________________________________________________________________________________
                             (4)  Beginning  and ending  principal  balances of  7.05 statement
                             the asset-backed securities.
_______________________________________________________________________________________________________________________
                             (5) Interest  rates  applicable to the pool assets  7.05 statement
                             and the  asset-backed  securities,  as applicable.
                             Consider  providing  interest rate information for
                             pool assets in appropriate  distributional  groups
                             or incremental ranges.
_______________________________________________________________________________________________________________________
                             (6) Beginning and ending  balances of  transaction  7.05 statement
                             accounts,  such as reserve accounts,  and material
                             account activity during the period.
_______________________________________________________________________________________________________________________
                             (7) Any  amounts  drawn on any credit  enhancement  7.05 statement
                             or  other  support  identified  in  Item  1114  of
                             Regulation  AB, as  applicable,  and the amount of
                             coverage remaining under any such enhancement,  if
                             known and applicable.
_______________________________________________________________________________________________________________________
                             (8)  Number  and  amount  of  pool  assets  at the  7.05 statement
                             beginning  and ending of each period,  and updated
                             pool  composition  information,  such as  weighted  Updated      pool       composition
                             average coupon,  weighted  average life,  weighted  information   fields   to   be   as
                             average   remaining   term,   pool   factors   and  specified by Servicer  from time to
                             prepayment amounts.                                 time
_______________________________________________________________________________________________________________________
                             (9)  Delinquency  and  loss  information  for  the  7.05 statement.
                             period.

                             In addition,  describe any material changes to the  Form 10-D report: Servicer
                             information   specified  in  Item   1100(b)(5)  of
                             Regulation AB regarding the pool assets.
_______________________________________________________________________________________________________________________
                             (10) Information on the amount,  terms and general  7.05 statement
                             purpose of any advances made or reimbursed  during
                             the  period,  including  the  general use of funds
                             advanced  and the  general  source  of  funds  for
                             reimbursements.
_______________________________________________________________________________________________________________________
                             (11) Any  material  modifications,  extensions  or  Form 10-D report; Servicer
                             waivers to pool asset  terms,  fees,  penalties or
                             payments  during the  distribution  period or that
                             have cumulatively become material over time.
_______________________________________________________________________________________________________________________
                             (12)    Material    breaches    of   pool    asset  Form 10-D report: Servicer,  Master
                             representations   or  warranties  or   transaction  Servicer
                             covenants.
_______________________________________________________________________________________________________________________
                             (13)  Information  on  ratio,  coverage  or  other  7.05 statement
                             tests    used   for    determining    any    early
                             amortization,  liquidation  or  other  performance
                             trigger and whether the trigger was met.
_______________________________________________________________________________________________________________________
                             (14)  Information  regarding  any new  issuance of  Form 10-D report: Sponsor
                             asset-backed  securities  backed by the same asset
                             pool,                                               Form 10-D report: Seller
                             [information  regarding]  any pool  asset  changes
                             (other  than  in  connection  with  a  pool  asset
                             converting   into  cash  in  accordance  with  its
                             terms),   such  as   additions   or   removals  in
                             connection  with a prefunding or revolving  period
                             and pool asset  substitutions and repurchases (and
                             purchase  rates,  if  applicable),  and cash flows
                             available  for  future  purchases,   such  as  the
                             balances of any prefunding or revolving  accounts,
                             if applicable.                                      Form 10-D report: Seller
                             Disclose    any    material    changes    in   the
                             solicitation,    credit-granting,    underwriting,
                             origination,   acquisition   or   pool   selection
                             criteria or  procedures,  as  applicable,  used to
                             originate, acquire or select the new pool assets.
_______________________________________________________________________________________________________________________
                             Item 1121(b) -  Pre-Funding  or  Revolving  Period  N/A
                             Information
                             Updated pool  information  as required  under Item
                             1121(b).
_______________________________________________________________________________________________________________________
               2             Legal Proceedings
_______________________________________________________________________________________________________________________
                             Item 1117 - Legal proceedings  pending against the
                             following entities,  or their respective property,
                             that  is   material  to   Noteholders,   including
                             proceedings    known   to   be   contemplated   by
                             governmental authorities:
                             Seller
                             Depositor                                           Seller
                             Indenture Trustee                                   Depositor
                             Issuing entity                                      Indenture Trustee
                             Master Servicer                                     Sponsor
                             Securities Administrator                            Master Servicer
                             Servicer                                            Securities Administrator
                             Originator                                          Servicer
                             Custodian                                           Originator
                                                                                 Custodian
_______________________________________________________________________________________________________________________
               3             Sales of Securities and Use of Proceeds
_______________________________________________________________________________________________________________________
                             Information  from  Item  2(a)  of  Part II of Form
                             10-Q:

                             With  respect  to any  sale of  securities  by the  Depositor,     Sponsor,     Issuing
                             sponsor,  depositor  or issuing  entity,  that are  Entity, as applicable
                             backed  by the same  asset  pool or are  otherwise
                             issued  by  the  issuing  entity,  whether  or not
                             registered,  provide the sales and use of proceeds
                             information   in  Item  701  of  Regulation   S-K.
                             Pricing  information  can be omitted if securities
                             were not registered.
_______________________________________________________________________________________________________________________
               4             Defaults Upon Senior Securities
_______________________________________________________________________________________________________________________
                             Information from Item 3 of Part II of Form 10-Q:

                             Report  the  occurrence  of any  Event of  Default
                             (after   expiration   of  any  grace   period  and  Securities Administrator
                             provision of any required notice)
_______________________________________________________________________________________________________________________
               5             Submission  of  Matters  to  a  Vote  of  Security
                             Holders
_______________________________________________________________________________________________________________________
                             Information from Item 4 of Part II of Form 10-Q     Securities Administrator
                                                                                 Indenture Trustee
_______________________________________________________________________________________________________________________
               6             Significant Obligors of Pool Assets
_______________________________________________________________________________________________________________________
                             Item  1112(b)  -  Significant   Obligor  Financial  N/A
                             Information*
_______________________________________________________________________________________________________________________
                             *This  information  need only be  reported  on the
                             Form  10-D for the  distribution  period  in which
                             updated  information  is required  pursuant to the
                             Item.
_______________________________________________________________________________________________________________________
               7             Significant Enhancement Provider Information
_______________________________________________________________________________________________________________________
                             Item  1114(b)(2)  -  Credit  Enhancement  Provider
                             Financial Information*
                             Determining applicable disclosure threshold         N/A
                             Obtaining   required   financial   information  or
                             effecting incorporation by reference                N/A
_______________________________________________________________________________________________________________________
                             Item 1115(b) - Derivative  Counterparty  Financial
                             Information*
                             Determining current maximum probable exposure       Depositor
                             Determining current significance percentage         Securities Administrator
                             Obtaining   required   financial   information  or
                             effecting incorporation by reference                Depositor                                                                                 Depositor

_______________________________________________________________________________________________________________________
                             *This  information  need only be  reported  on the
                             Form  10-D for the  distribution  period  in which
                             updated  information  is required  pursuant to the
                             Items.
_______________________________________________________________________________________________________________________
               8             Other Information
_______________________________________________________________________________________________________________________
                             Disclose any  information  required to be reported  The  Responsible   Entity  for  the
                             on Form 8-K during the period  covered by the Form  applicable   Form   8-K   item   as
                             10-D but not reported                               indicated below
_______________________________________________________________________________________________________________________
               9             Exhibits
_______________________________________________________________________________________________________________________
                             Distribution report                                 Securities Administrator
_______________________________________________________________________________________________________________________
                             Exhibits  required by Item 601 of Regulation  S-K,  All  parties  that  are a party  to
                             such as material agreements                         such exhibit and if none, Sponsor
_______________________________________________________________________________________________________________________
8-K            Must be filed within four business days of an event reportable on Form 8-K.
_______________________________________________________________________________________________________________________
               1.01          Entry into a Material Definitive Agreement
_______________________________________________________________________________________________________________________
                             Disclosure  is  required  regarding  entry into or  All parties
                             amendment  of any  definitive  agreement  that  is
                             material to the securitization,  even if depositor
                             is not a party.
                             Examples: Sale and Servicing Agreement,  custodial
                             agreement.
                             Note:  disclosure  not  required as to  definitive
                             agreements   that  are  fully   disclosed  in  the
                             prospectus
_______________________________________________________________________________________________________________________
               1.02          Termination of a Material Definitive Agreement
_______________________________________________________________________________________________________________________
                             Disclosure is required  regarding  termination  of  All parties
                             any  definitive  agreement that is material to the
                             securitization    (other   than    expiration   in
                             accordance  with its terms),  even if depositor is
                             not a party.
                             Examples: Sale and Servicing Agreement,  custodial
                             agreement.

_______________________________________________________________________________________________________________________
               1.03          Bankruptcy or Receivership
_______________________________________________________________________________________________________________________
                             Disclosure is required  regarding  the  bankruptcy  Sponsor (Seller), Depositor,
                             or  receivership,  if  known to the  Depositor  or  Servicer, Master Servicer,
                             Servicer, with respect to any of the following:     Securities Administrator,
                             Sponsor  (Seller),  Depositor,   Servicer,  Master  Indenture Trustee,  Custodian
                             Servicer,   Securities  Administrator,   Indenture
                             Trustee, Swap Provider, Cap Provider, Custodian
_______________________________________________________________________________________________________________________
               2.04          Triggering  Events that  Accelerate  or Increase a
                             Direct  Financial   Obligation  or  an  Obligation
                             under an Off-Balance Sheet Arrangement
_______________________________________________________________________________________________________________________
                             Includes   an  early   amortization,   performance  Master Servicer
                             trigger  or  other  event,   including   event  of  Securities Administrator
                             default,  that would  materially alter the payment
                             priority/distribution  of cash  flows/amortization
                             schedule.
                             Disclosure  will  be  made of  events  other  than
                             waterfall  triggers  which  are  disclosed  in the
                             7.05 statement
_______________________________________________________________________________________________________________________
               3.03          Material   Modification   to  Rights  of  Security
                             Holders
_______________________________________________________________________________________________________________________
                             Disclosure    is   required   of   any    material  Party      requesting      material
                             modification  to documents  defining the rights of  modification
                             Noteholders,  including  the  Pooling and Sale and
                             Servicing Agreement
_______________________________________________________________________________________________________________________
               5.03          Amendments   to  Articles  of   Incorporation   or
                             Bylaws; Change in Fiscal Year
_______________________________________________________________________________________________________________________
                             Disclosure  is required of any  amendment  "to the  Sponsor
                             governing documents of the issuing entity"
_______________________________________________________________________________________________________________________
               5.06          Change in Shell Company Status
_______________________________________________________________________________________________________________________
                             [Not applicable to ABS Issuing Entitys]             N/A
_______________________________________________________________________________________________________________________
               6.01          ABS Informational and Computational Material
_______________________________________________________________________________________________________________________
                             [Not   included  in  reports  to  be  filed  under  N/A
                             Section 4.07]
_______________________________________________________________________________________________________________________
               6.02          Change of Master  Servicer,  Servicer,  Securities
                             Administrator or Indenture Trustee
_______________________________________________________________________________________________________________________
                             Requires  disclosure of any removal,  replacement,  Indenture    Trustee,    Securities
                             substitution  or addition of any master  servicer,  Administrator,  Servicer  or Master
                             affiliated servicer,  other servicer servicing 10%  Servicer
                             or more of pool  assets at time of  report,  other
                             material  servicers or  indenture  trustee (in the
                             case of the Indenture  Trustee,  only with respect
                             to  itself).  Reg  AB  disclosure  about  any  new
                             servicer or indenture trustee is also required.
_______________________________________________________________________________________________________________________
               6.03          Change in  Credit  Enhancement  or Other  External
                             Support
_______________________________________________________________________________________________________________________
                             Covers  termination  of any  enhancement in manner  Depositor/Securities
                             other  than  by  its  terms,  the  addition  of an  Administrator/Indenture Trustee
                             enhancement,   or  a   material   change   in  the
                             enhancement  provided.  Applies to external credit
                             enhancements  as  well  as  derivatives.   Reg  AB
                             disclosure  about any new enhancement  provider is
                             also required.
_______________________________________________________________________________________________________________________
               6.04          Failure to Make a Required Payment                  Securities Administrator
_______________________________________________________________________________________________________________________
               6.05          Securities Act Updating Disclosure
_______________________________________________________________________________________________________________________
                             If any material pool characteristic  differs by 5%  Sponsor
                             or more at the time of issuance of the  securities
                             from  the  description  in the  final  prospectus,
                             provide  updated  Reg  AB  disclosure   about  the
                             actual asset pool.
_______________________________________________________________________________________________________________________
                             If  there  are any new  servicers  or  originators  Sponsor
                             required to be disclosed under  Regulation AB as a
                             result of the foregoing,  provide the  information
                             called for in Items 1108 and 1110 respectively.
_______________________________________________________________________________________________________________________
               7.01          Regulation FD Disclosure                            All parties
_______________________________________________________________________________________________________________________
               8.01          Other Events
_______________________________________________________________________________________________________________________
                             Any event,  with respect to which  information  is  Depositor, Sponsor
                             not  otherwise  called  for in Form 8-K,  that the
                             registrant   deems  of   importance   to  security
                             holders.
_______________________________________________________________________________________________________________________
               9.01          Financial Statements and Exhibits                   The Responsible  Entity  applicable
                                                                                 to reportable event
_______________________________________________________________________________________________________________________
10-K           Must be filed within 90 days of the fiscal year end for the registrant.
_______________________________________________________________________________________________________________________
               9B            Other Information
_______________________________________________________________________________________________________________________
                             Disclose any  information  required to be reported  The  Responsible   Entity  for  the
                             on Form 8-K during the fourth  quarter  covered by  applicable   Form   8-K   item   as
                             the Form 10-K but not reported                      indicated above
_______________________________________________________________________________________________________________________
               15            Exhibits and Financial Statement Schedules
_______________________________________________________________________________________________________________________
                             Item  1112(b)  -  Significant   Obligor  Financial  N/A
                             Information
_______________________________________________________________________________________________________________________
                             Item  1114(b)(2)  -  Credit  Enhancement  Provider
                             Financial Information
                             Determining applicable disclosure threshold         N/A
                             Obtaining   required   financial   information  or
                             effecting incorporation by reference                N/A
_______________________________________________________________________________________________________________________
                             Item 1115(b) - Derivative  Counterparty  Financial
                             Information
                             Determining current maximum probable exposure       Securities Administrator
                             Determining current significance percentage
                             Obtaining   required   financial   information  or  Securities Administrator
                             effecting incorporation by reference

                                                                                 Depositor

_______________________________________________________________________________________________________________________
                             Item 1117 - Legal proceedings  pending against the
                             following entities,  or their respective property,
                             that  is   material  to   Noteholders,   including
                             proceedings    known   to   be   contemplated   by
                             governmental authorities:
                             Seller
                             Depositor                                           Seller
                             Indenture Trustee                                   Depositor
                             Issuing entity                                      Indenture Trustee
                             Master Servicer                                     Sponsor
                             Securities Administrator                            Master Servicer
                             Servicer                                            Securities Administrator
                             Originator                                          Servicer
                             Custodian                                           Originator
                                                                                 Custodian
_______________________________________________________________________________________________________________________
                             Item  1119  -   Affiliations   and   relationships
                             between   the   following   entities,   or   their
                             respective   affiliates,   that  are  material  to
                             Noteholders:
                             Seller
                             Depositor                                           Seller
                             Indenture Trustee                                   Depositor
                             Issuing entity                                      Indenture Trustee
                             Master Servicer                                     Issuing entity
                             Securities Administrator                            Master Servicer
                             Servicer                                            Securities Administrator
                             Originator                                          Servicer
                             Custodian                                           Originator
                             Credit Enhancer/Support Provider, if any            Custodian
                             Significant Obligor, if any                         Depositor
                                                                                 Sponsor
_______________________________________________________________________________________________________________________
                             Item  1122  -  Assessment   of   Compliance   with  Each  Party  participating  in  the
                             Servicing Criteria                                  servicing function
_______________________________________________________________________________________________________________________
                             Item 1123 - Servicer Compliance Statement           Servicer, Master Servicer
_______________________________________________________________________________________________________________________

                                                EXHIBIT J

                                 STANDARD FILE LAYOUT—SCHEDULED/SCHEDULED

_____________________________________________________________________________________________________________________________
                                    Standard   Loan  Level  File   Layout  -  Master
                                    Servicing
_____________________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________________
Exhibit 1:  Layout

_____________________________________________________________________________________________________________________________
Column Name                         Description                                       Decimal   Format Comment
                                                                                                                       Max
                                                                                                                       Size
_____________________________________________________________________________________________________________________________
Each file requires the following fields:

_____________________________________________________________________________________________________________________________
SER_INVESTOR_NBR                    A value  assigned  by the  Servicer  to define a            Text up to 20 digits
                                    group of loans.                                                                       20
_____________________________________________________________________________________________________________________________
LOAN_NBR                            A unique  identifier  assigned  to each  loan by            Text up to 10 digits
                                    the investor.                                                                         10
_____________________________________________________________________________________________________________________________
SERVICER_LOAN_NBR                   A  unique  number  assigned  to a  loan  by  the            Text up to 10 digits
                                    Servicer.   This  may  be  different   than  the                                      10
                                    LOAN_NBR.
_____________________________________________________________________________________________________________________________
SCHED_PAY_AMT                       Scheduled   monthly   principal   and  scheduled         2  No    commas(,)    or
                                    interest  payment that a borrower is expected to            dollar signs ($)          11
                                    pay, P&I constant.
_____________________________________________________________________________________________________________________________
NOTE_INT_RATE                       The  loan  interest  rate  as  reported  by  the         4  Max length of 6
                                    Servicer.                                                                              6
_____________________________________________________________________________________________________________________________
NET_INT_RATE                        The loan gross  interest  rate less the  service         4  Max length of 6
                                    fee rate as reported by the Servicer.                                                  6
_____________________________________________________________________________________________________________________________
SERV_FEE_RATE                       The  servicer's  fee rate for a loan as reported         4  Max length of 6
                                    by the Servicer.                                                                       6
_____________________________________________________________________________________________________________________________
SERV_FEE_AMT                        The   servicer's   fee  amount  for  a  loan  as         2  No    commas(,)    or
                                    reported by the Servicer.                                   dollar signs ($)          11
_____________________________________________________________________________________________________________________________
NEW_PAY_AMT                         The new loan  payment  amount as reported by the         2  No    commas(,)    or
                                    Servicer.                                                   dollar signs ($)          11
_____________________________________________________________________________________________________________________________
NEW_LOAN_RATE                       The new loan rate as reported by the Servicer.           4  Max length of 6
                                                                                                                           6
_____________________________________________________________________________________________________________________________
ARM_INDEX_RATE                      The index the  Servicer is using to  calculate a         4  Max length of 6
                                    forecasted rate.                                                                       6
_____________________________________________________________________________________________________________________________
ACTL_BEG_PRIN_BAL                   The borrower's  actual principal  balance at the         2  No    commas(,)    or
                                    beginning of the processing cycle.                          dollar signs ($)          11
_____________________________________________________________________________________________________________________________
ACTL_END_PRIN_BAL                   The borrower's  actual principal  balance at the         2  No    commas(,)    or
                                    end of the processing cycle.                                dollar signs ($)          11
_____________________________________________________________________________________________________________________________
BORR_NEXT_PAY_DUE_DATE              The  date at the end of  processing  cycle  that            MM/DD/YYYY
                                    the  borrower's  next  payment  is  due  to  the                                      10
                                    Servicer, as reported by Servicer.
_____________________________________________________________________________________________________________________________
SERV_CURT_AMT_1                     The first curtailment amount to be applied.              2  No    commas(,)    or
                                                                                                dollar signs ($)          11
_____________________________________________________________________________________________________________________________
SERV_CURT_DATE_1                    The  curtailment  date associated with the first            MM/DD/YYYY
                                    curtailment amount.                                                                   10
_____________________________________________________________________________________________________________________________
CURT_ADJ_ AMT_1                     The   curtailment    interest   on   the   first         2  No    commas(,)    or
                                    curtailment amount, if applicable.                          dollar signs ($)          11
_____________________________________________________________________________________________________________________________
SERV_CURT_AMT_2                     The second curtailment amount to be applied.             2  No    commas(,)    or
                                                                                                dollar signs ($)          11
_____________________________________________________________________________________________________________________________
SERV_CURT_DATE_2                    The curtailment  date associated with the second            MM/DD/YYYY
                                    curtailment amount.                                                                   10
_____________________________________________________________________________________________________________________________
CURT_ADJ_ AMT_2                     The   curtailment   interest   on   the   second         2  No    commas(,)    or
                                    curtailment amount, if applicable.                          dollar signs ($)          11
_____________________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________________
Exhibit 1: Continued                Standard Loan Level File Layout

_____________________________________________________________________________________________________________________________
Column Name                         Description                                       Decimal   Format Comment
                                                                                                                        Max
                                                                                                                       Size
_____________________________________________________________________________________________________________________________
SERV_CURT_AMT_3                     The third curtailment amount to be applied.              2  No    commas(,)    or
                                                                                                dollar signs ($)          11
_____________________________________________________________________________________________________________________________
SERV_CURT_DATE_3                    The  curtailment  date associated with the third            MM/DD/YYYY
                                    curtailment amount.                                                                   10
_____________________________________________________________________________________________________________________________
CURT_ADJ_AMT_3                      The   curtailment    interest   on   the   third         2  No    commas(,)    or
                                    curtailment amount, if applicable.                          dollar signs ($)          11
_____________________________________________________________________________________________________________________________
PIF_AMT                             The loan "paid in full"  amount as  reported  by         2  No    commas(,)    or
                                    the Servicer.                                               dollar signs ($)          11
_____________________________________________________________________________________________________________________________
PIF_DATE                            The  paid  in  full  date  as  reported  by  the            MM/DD/YYYY
                                    Servicer.                                                                             10
_____________________________________________________________________________________________________________________________
                                                                                                Action    Code   Key:
ACTION_CODE                         The standard  FNMA numeric code used to indicate            15=Bankruptcy,             2
                                    the  default/delinquent  status of a  particular            30=Foreclosure,     ,
                                    loan.                                                       60=PIF,
                                                                                                63=Substitution,
                                                                                                65=Repurchase,70=REO
_____________________________________________________________________________________________________________________________
INT_ADJ_AMT                         The  amount  of  the  interest   adjustment   as         2  No    commas(,)    or
                                    reported by the Servicer.                                   dollar signs ($)          11
_____________________________________________________________________________________________________________________________
SOLDIER_SAILOR_ADJ_AMT              The Soldier  and Sailor  Adjustment  amount,  if         2  No    commas(,)    or
                                    applicable.                                                 dollar signs ($)          11
_____________________________________________________________________________________________________________________________
NON_ADV_LOAN_AMT                    The Non Recoverable Loan Amount, if applicable.          2  No    commas(,)    or
                                                                                                dollar signs ($)          11
_____________________________________________________________________________________________________________________________
LOAN_LOSS_AMT                       The  amount the  Servicer  is passing as a loss,         2  No    commas(,)    or
                                    if applicable.                                              dollar signs ($)          11
_____________________________________________________________________________________________________________________________
Plus the following applicable fields:

_____________________________________________________________________________________________________________________________
SCHED_BEG_PRIN_BAL                  The scheduled  outstanding  principal amount due         2  No    commas(,)    or
                                    at the  beginning of the cycle date to be passed            dollar signs ($)          11
                                    through to investors.
_____________________________________________________________________________________________________________________________
SCHED_END_PRIN_BAL                  The   scheduled   principal   balance   due   to         2  No    commas(,)    or
                                    investors at the end of a processing cycle.                 dollar signs ($)          11
_____________________________________________________________________________________________________________________________
SCHED_PRIN_AMT                      The  scheduled  principal  amount as reported by         2  No    commas(,)    or
                                    the  Servicer  for  the  current  cycle  -- only            dollar signs ($)          11
                                    applicable for Scheduled/Scheduled Loans.
_____________________________________________________________________________________________________________________________
SCHED_NET_INT                       The  scheduled  gross  interest  amount less the         2  No    commas(,)    or
                                    service  fee  amount  for the  current  cycle as            dollar signs ($)          11
                                    reported by the Servicer -- only  applicable for
                                    Scheduled/Scheduled Loans.
_____________________________________________________________________________________________________________________________
ACTL_PRIN_AMT                       The actual  principal  amount  collected  by the         2  No    commas(,)    or
                                    Servicer  for the  current  reporting  cycle  --            dollar signs ($)          11
                                    only applicable for Actual/Actual Loans.
_____________________________________________________________________________________________________________________________
ACTL_NET_INT                        The  actual  gross  interest   amount  less  the         2  No    commas(,)    or
                                    service  fee  amount for the  current  reporting            dollar signs ($)          11
                                    cycle  as  reported  by  the  Servicer  --  only
                                    applicable for Actual/Actual Loans.
_____________________________________________________________________________________________________________________________
PREPAY_PENALTY_ AMT                 The  penalty  amount  received  when a  borrower         2  No    commas(,)    or
                                    prepays   on  his  loan  as   reported   by  the            dollar signs ($)          11
                                    Servicer.
_____________________________________________________________________________________________________________________________
PREPAY_PENALTY_ WAIVED              The  prepayment  penalty  amount  for  the  loan         2  No    commas(,)    or
                                    waived by the servicer.                                     dollar signs ($)          11
_____________________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________________
Exhibit 1: Continued                Standard Loan Level File Layout

_____________________________________________________________________________________________________________________________
Column Name                         Description                                        Decimal  Format Comment
                                                                                                                       Max
                                                                                                                       Size
_____________________________________________________________________________________________________________________________
MOD_DATE                            The Effective  Payment Date of the  Modification            MM/DD/YYYY
                                    for the loan.                                                                         10
_____________________________________________________________________________________________________________________________
MOD_TYPE                            The Modification Type.                                      Varchar  - value  can
                                                                                                be alpha or numeric       30
_____________________________________________________________________________________________________________________________
DELINQ_P&I_ADVANCE_AMT              The current  outstanding  principal and interest         2  No    commas(,)    or
                                    advances made by Servicer.                                  dollar signs ($)          11
_____________________________________________________________________________________________________________________________
                                    Flag to indicate if the  repurchase of a loan is            Y=Breach
BREACH_FLAG                         due  to  a   breach   of   Representations   and            N=NO Breach                1
                                    Warranties                                                  Let blank if N/A
_____________________________________________________________________________________________________________________________

                                                EXHIBIT K

                                STANDARD FILE LAYOUT—DELINQUENCY REPORTING

_________________________________________________________________________________________________________________________________________
Column/Header Name                                                     Description                            Decimal    Format Comment
_________________________________________________________________________________________________________________________________________
SERVICER_LOAN_NBR                             A unique  number  assigned  to a loan by the  Servicer.  This
                                              may be different than the LOAN_NBR
_________________________________________________________________________________________________________________________________________
LOAN_NBR                                      A unique identifier assigned to each loan by the originator.
_________________________________________________________________________________________________________________________________________
CLIENT_NBR                                    Servicer Client Number
_________________________________________________________________________________________________________________________________________
SERV_INVESTOR_NBR                             Contains a unique number as assigned by an external  servicer
                                              to identify a group of loans in their system.
_________________________________________________________________________________________________________________________________________
BORROWER_FIRST_NAME                           First Name of the Borrower.
_________________________________________________________________________________________________________________________________________
BORROWER_LAST_NAME                            Last name of the borrower.
_________________________________________________________________________________________________________________________________________
PROP_ADDRESS                                  Street Name and Number of Property
_________________________________________________________________________________________________________________________________________
PROP_STATE                                    The state where the property located.
_________________________________________________________________________________________________________________________________________
PROP_ZIP                                      Zip code where the property is located.
_________________________________________________________________________________________________________________________________________
BORR_NEXT_PAY_DUE_DATE                        The  date  that the  borrower's  next  payment  is due to the              MM/DD/YYYY
                                              servicer  at the end of  processing  cycle,  as  reported  by
                                              Servicer.
_________________________________________________________________________________________________________________________________________
LOAN_TYPE                                     Loan Type (i.e. FHA, VA, Conv)
_________________________________________________________________________________________________________________________________________
BANKRUPTCY_FILED_DATE                         The date a particular bankruptcy claim was filed.                          MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
BANKRUPTCY_CHAPTER_CODE                       The chapter under which the bankruptcy was filed.
_________________________________________________________________________________________________________________________________________
BANKRUPTCY_CASE_NBR                           The case  number  assigned  by the  court  to the  bankruptcy
                                              filing.
_________________________________________________________________________________________________________________________________________
POST_PETITION_DUE_DATE                        The payment due date once the  bankruptcy  has been  approved              MM/DD/YYYY
                                              by the courts
_________________________________________________________________________________________________________________________________________
BANKRUPTCY_DCHRG_DISM_DATE                    The Date The  Loan Is  Removed  From  Bankruptcy.  Either  by              MM/DD/YYYY
                                              Dismissal,   Discharged   and/or  a  Motion  For  Relief  Was
                                              Granted.
_________________________________________________________________________________________________________________________________________
LOSS_MIT_APPR_DATE                            The Date The Loss Mitigation Was Approved By The Servicer                  MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
LOSS_MIT_TYPE                                 The Type Of Loss Mitigation Approved For A Loan Such As;
_________________________________________________________________________________________________________________________________________
LOSS_MIT_EST_COMP_DATE                        The Date The Loss Mitigation /Plan Is Scheduled To End/Close               MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
LOSS_MIT_ACT_COMP_DATE                        The Date The Loss Mitigation Is Actually Completed                         MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
FRCLSR_APPROVED_DATE                          The  date  DA  Admin  sends a  letter  to the  servicer  with              MM/DD/YYYY
                                              instructions to begin foreclosure proceedings.
_________________________________________________________________________________________________________________________________________
ATTORNEY_REFERRAL_DATE                        Date File Was Referred To Attorney to Pursue Foreclosure                   MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
FIRST_LEGAL_DATE                              Notice of 1st legal  filed by an  Attorney  in a  Foreclosure              MM/DD/YYYY
                                              Action
_________________________________________________________________________________________________________________________________________
FRCLSR_SALE_EXPECTED_DATE                     The date by which a foreclosure sale is expected to occur.                 MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
FRCLSR_SALE_DATE                              The actual date of the foreclosure sale.                                   MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
FRCLSR_SALE_AMT                               The amount a property sold for at the foreclosure sale.            2       No    commas(,)
                                                                                                                         or       dollar
                                                                                                                         signs ($)
_________________________________________________________________________________________________________________________________________
EVICTION_START_DATE                           The date the servicer initiates eviction of the borrower.                  MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
EVICTION_COMPLETED_DATE                       The date the court revokes  legal  possession of the property              MM/DD/YYYY
                                              from the borrower.
_________________________________________________________________________________________________________________________________________
LIST_PRICE                                    The price at which an REO property is marketed.                    2       No    commas(,)
                                                                                                                         or       dollar
                                                                                                                         signs ($)
_________________________________________________________________________________________________________________________________________
LIST_DATE                                     The date an REO property is listed at a particular price.                  MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
OFFER_AMT                                     The dollar value of an offer for an REO property.                  2       No    commas(,)
                                                                                                                         or       dollar
                                                                                                                         signs ($)
_________________________________________________________________________________________________________________________________________
OFFER_DATE_TIME                               The date an offer is received by DA Admin or by the Servicer.              MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
REO_CLOSING_DATE                              The date the REO sale of the property is scheduled to close.               MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
REO_ACTUAL_CLOSING_DATE                       Actual Date Of REO Sale                                                    MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
OCCUPANT_CODE                                 Classification of how the property is occupied.
_________________________________________________________________________________________________________________________________________
PROP_CONDITION_CODE                           A code that indicates the condition of the property.
_________________________________________________________________________________________________________________________________________
PROP_INSPECTION_DATE                          The date a property inspection is performed.                               MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
APPRAISAL_DATE                                The date the appraisal was done.                                           MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
CURR_PROP_VAL                                  The current "as is" value of the  property  based on brokers      2
                                              price opinion or appraisal.
_________________________________________________________________________________________________________________________________________
REPAIRED_PROP_VAL                             The  amount  the  property  would  be worth  if  repairs  are      2
                                              completed pursuant to a broker's price opinion or appraisal.
_________________________________________________________________________________________________________________________________________
If applicable:
_________________________________________________________________________________________________________________________________________
DELINQ_STATUS_CODE                            FNMA Code Describing Status of Loan
_________________________________________________________________________________________________________________________________________
DELINQ_REASON_CODE                            The  circumstances  which caused a borrower to stop paying on
                                              a  loan.  Code  indicates  the  reason  why  the  loan  is in
                                              default for this cycle.
_________________________________________________________________________________________________________________________________________
MI_CLAIM_FILED_DATE                           Date  Mortgage   Insurance  Claim  Was  Filed  With  Mortgage              MM/DD/YYYY
                                              Insurance Company.
_________________________________________________________________________________________________________________________________________
MI_CLAIM_AMT                                  Amount of Mortgage Insurance Claim Filed                                   No    commas(,)
                                                                                                                         or       dollar
                                                                                                                         signs ($)
_________________________________________________________________________________________________________________________________________
MI_CLAIM_PAID_DATE                            Date Mortgage Insurance Company Disbursed Claim Payment                    MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
MI_CLAIM_AMT_PAID                             Amount Mortgage Insurance Company Paid On Claim                    2       No    commas(,)
                                                                                                                         or       dollar
                                                                                                                         signs ($)
_________________________________________________________________________________________________________________________________________
POOL_CLAIM_FILED_DATE                         Date Claim Was Filed With Pool Insurance Company                           MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
POOL_CLAIM_AMT                                Amount of Claim Filed With Pool Insurance Company                  2       No    commas(,)
                                                                                                                         or       dollar
                                                                                                                         signs ($)
_________________________________________________________________________________________________________________________________________
POOL_CLAIM_PAID_DATE                          Date Claim Was  Settled  and The Check Was Issued By The Pool              MM/DD/YYYY
                                              Insurer
_________________________________________________________________________________________________________________________________________
POOL_CLAIM_AMT_PAID                           Amount Paid On Claim By Pool Insurance Company                     2       No    commas(,)
                                                                                                                         or       dollar
                                                                                                                         signs ($)
_________________________________________________________________________________________________________________________________________
FHA_PART_A_CLAIM_FILED_DATE                    Date FHA Part A Claim Was Filed With HUD                                  MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
FHA_PART_A_CLAIM_AMT                           Amount of FHA Part A Claim Filed                                  2       No    commas(,)
                                                                                                                         or       dollar
                                                                                                                         signs ($)
_________________________________________________________________________________________________________________________________________
FHA_PART_A_CLAIM_PAID_DATE                     Date HUD Disbursed Part A Claim Payment                                   MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
FHA_PART_A_CLAIM_PAID_AMT                      Amount HUD Paid on Part A Claim                                   2       No    commas(,)
                                                                                                                         or       dollar
                                                                                                                         signs ($)
_________________________________________________________________________________________________________________________________________
FHA_PART_B_CLAIM_FILED_DATE                     Date FHA Part B Claim Was Filed With HUD                                 MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
FHA_PART_B_CLAIM_AMT                            Amount of FHA Part B Claim Filed                                 2       No    commas(,)
                                                                                                                         or       dollar
                                                                                                                         signs ($)
_________________________________________________________________________________________________________________________________________
FHA_PART_B_CLAIM_PAID_DATE                       Date HUD Disbursed Part B Claim Payment                                 MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
FHA_PART_B_CLAIM_PAID_AMT                      Amount HUD Paid on Part B Claim                                   2       No    commas(,)
                                                                                                                         or       dollar
                                                                                                                         signs ($)
_________________________________________________________________________________________________________________________________________
VA_CLAIM_FILED_DATE                            Date VA Claim Was Filed With the Veterans Admin                           MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
VA_CLAIM_PAID_DATE                             Date Veterans Admin. Disbursed VA Claim Payment                           MM/DD/YYYY
_________________________________________________________________________________________________________________________________________
VA_CLAIM_PAID_AMT                              Amount Veterans Admin. Paid on VA Claim                           2       No    commas(,)
                                                                                                                         or       dollar
                                                                                                                         signs ($)
_________________________________________________________________________________________________________________________________________

Exhibit 2: Standard File Codes - Delinquency Reporting

The Loss Mit Type field should show the approved Loss Mitigation Code as follows:
         o    ASUM-  Approved Assumption
         o    BAP-   Borrower Assistance Program
         o    CO-    Charge Off
         o    DIL-   Deed-in-Lieu
         o    FFA-   Formal Forbearance Agreement
         o    MOD-   Loan Modification
         o    PRE-   Pre-Sale
         o    SS-    Short Sale
         o    MISC-  Anything else approved by the PMI or Pool Insurer

NOTE: Wells Fargo Bank will accept  alternative  Loss Mitigation Types to those above,  provided that they
are consistent  with industry  standards.  If Loss  Mitigation  Types other than those above are used, the
Servicer must supply Wells Fargo Bank with a  description  of each of the Loss  Mitigation  Types prior to
sending the file.

The Occupant Code field should show the current status of the property code as follows:
         o    Mortgagor
         o    Tenant
         o    Unknown
         o    Vacant

The Property Condition field should show the last reported condition of the property as follows:
         o    Damaged
         o    Excellent
         o    Fair
         o    Gone
         o    Good
         o    Poor
         o    Special Hazard
         o    Unknown

Exhibit 2: Standard File Codes - Delinquency Reporting, Continued

The FNMA Delinquent Reason Code field should show the Reason for Delinquency as follows:

                      __________________________________________________________________________________
                      Delinquency Code         Delinquency Description
                      __________________________________________________________________________________
                      001                      FNMA-Death of principal mortgagor
                      __________________________________________________________________________________
                      002                      FNMA-Illness of principal mortgagor
                      __________________________________________________________________________________
                      003                      FNMA-Illness of mortgagor's family member
                      __________________________________________________________________________________
                      004                      FNMA-Death of mortgagor's family member
                      __________________________________________________________________________________
                      005                      FNMA-Marital difficulties
                      __________________________________________________________________________________
                      006                      FNMA-Curtailment of income
                      __________________________________________________________________________________
                      007                      FNMA-Excessive Obligation
                      __________________________________________________________________________________
                      008                      FNMA-Abandonment of property
                      __________________________________________________________________________________
                      009                      FNMA-Distant employee transfer
                      __________________________________________________________________________________
                      011                      FNMA-Property problem
                      __________________________________________________________________________________
                      012                      FNMA-Inability to sell property
                      __________________________________________________________________________________
                      013                      FNMA-Inability to rent property
                      __________________________________________________________________________________
                      014                      FNMA-Military Service
                      __________________________________________________________________________________
                      015                      FNMA-Other
                      __________________________________________________________________________________
                      016                      FNMA-Unemployment
                      __________________________________________________________________________________
                      017                      FNMA-Business failure
                      __________________________________________________________________________________
                      019                      FNMA-Casualty loss
                      __________________________________________________________________________________
                      022                      FNMA-Energy environment costs
                      __________________________________________________________________________________
                      023                      FNMA-Servicing problems
                      __________________________________________________________________________________
                      026                      FNMA-Payment adjustment
                      __________________________________________________________________________________
                      027                      FNMA-Payment dispute
                      __________________________________________________________________________________
                      029                      FNMA-Transfer of ownership pending
                      __________________________________________________________________________________
                      030                      FNMA-Fraud
                      __________________________________________________________________________________
                      031                      FNMA-Unable to contact borrower
                      __________________________________________________________________________________
                      INC                      FNMA-Incarceration
                      __________________________________________________________________________________

Exhibit 2: Standard File Codes - Delinquency Reporting, Continued

The FNMA Delinquent Status Code field should show the Status of Default as follows:

                      __________________________________________________________________________________
                            Status Code        Status Description
                      __________________________________________________________________________________
                                09             Forbearance
                      __________________________________________________________________________________
                                17             Pre-foreclosure Sale Closing Plan Accepted
                      __________________________________________________________________________________
                                24             Government Seizure
                      __________________________________________________________________________________
                                26             Refinance
                      __________________________________________________________________________________
                                27             Assumption
                      __________________________________________________________________________________
                                28             Modification
                      __________________________________________________________________________________
                                29             Charge-Off
                      __________________________________________________________________________________
                                30             Third Party Sale
                      __________________________________________________________________________________
                                31             Probate
                      __________________________________________________________________________________
                                32             Military Indulgence
                      __________________________________________________________________________________
                                43             Foreclosure Started
                      __________________________________________________________________________________
                                44             Deed-in-Lieu Started
                      __________________________________________________________________________________
                                49             Assignment Completed
                      __________________________________________________________________________________
                                61             Second Lien Considerations
                      __________________________________________________________________________________
                                62             Veteran's Affairs-No Bid
                      __________________________________________________________________________________
                                63             Veteran's Affairs-Refund
                      __________________________________________________________________________________
                                64             Veteran's Affairs-Buydown
                      __________________________________________________________________________________
                                65             Chapter 7 Bankruptcy
                      __________________________________________________________________________________
                                66             Chapter 11 Bankruptcy
                      __________________________________________________________________________________
                                67             Chapter 13 Bankruptcy
                      __________________________________________________________________________________

                                                EXHIBIT L

                                CALCULATION OF REALIZED LOSS/GAIN FORM 332

                   WELLS FARGO BANK, N.A. - Calculation of Realized Loss/Gain Form 332

         Prepared by:  __________________                     Date:  _______________
         Phone:  ______________________   Email Address:_____________________

__________________________________  _________________________________________   ____________________________________________
Servicer Loan No.                     Servicer Name                             Servicer Address

__________________________________  _________________________________________   ____________________________________________

         WELLS FARGO BANK, N.A. Loan No._____________________________

         Borrower's Name: _________________________________________________________
         Property Address: _________________________________________________________

         Liquidation Type:  REO Sale      3rd Party Sale            Short Sale       Charge Off

         Was this loan granted a Bankruptcy deficiency or cramdown              Yes         No
         If "Yes", provide deficiency or cramdown amount _______________________________

         Liquidation and Acquisition Expenses:
         (1)  Actual Unpaid Principal Balance of Mortgage Loan                 $ ________________(1)
         (2)  Interest accrued at Net Rate                                       ________________(2)
         (3)  Accrued Servicing Fees                                             ________________(3)
         (4)  Attorney's Fees                                                    ________________(4)
         (5)  Taxes (see page 2)                                                 ________________(5)
         (6)  Property Maintenance                                               ________________(6)
         (7)  MI/Hazard Insurance Premiums (see page 2)                          ________________(7)
         (8)  Utility Expenses                                                   ________________(8)
         (9)  Appraisal/BPO                                                      ________________(9)
         (10) Property Inspections                                               _______________(10)
         (11) FC Costs/Other Legal Expenses                                      _______________(11)
         (12) Other (itemize)                                                    _______________(12)
                  Cash for Keys__________________________                        _______________(12)
                  HOA/Condo Fees_______________________                          _______________(12)
                  ______________________________________                         _______________(12)

                  Total Expenses                                                $ ______________(13)

         Credits:
         (14) Escrow Balance                                                    $ ______________(14)
         (15) HIP Refund                                                        ________________(15)
         (16) Rental Receipts                                                   ________________(16)
         (17) Hazard Loss Proceeds                                              ________________(17)
         (18) Primary Mortgage Insurance / Gov't Insurance                      ________________(18a)
         HUD Part A
                                                                                ________________(18b)
         HUD Part B
         (19) Pool Insurance Proceeds                                           ________________(19)
         (20) Proceeds from Sale of Acquired Property                           ________________(20)
         (21) Other (itemize)                                                   ________________(21)
              _________________________________________                         ________________(21)

              Total Credits                                                     $_______________(22)

         Total Realized Loss (or Amount of Gain)                                $_______________(23)

Escrow Disbursement Detail

______________________________________________________________________________________________________________________
      Type           Date Paid        Period of       Total Paid      Base Amount       Penalties        Interest
   (Tax /Ins.)                        Coverage
______________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________

                                          WELLS FARGO BANK, N.A.
                           Calculation of Realized Loss/Gain Form 332- Instruction Sheet

         NOTE: Do not net or combine  items.  Show all expenses  individually  and all credits as separate
         line items.  Claim packages are due on the remittance  report date.  Late  submissions may result
         in claims not being passed until the following month.

                           (b)      The numbers on the 332 form correspond with the numbers listed below.

         Liquidation and Acquisition Expenses:
         1.       The Actual  Unpaid  Principal  Balance  of the  Mortgage  Loan.  For  documentation,  an
                  Amortization  Schedule  from date of default  through  liquidation  breaking out the net
                  interest and servicing fees advanced is required.

         2.       The Total  Interest Due less the aggregate  amount of servicing fee that would have been
                  earned  if all  delinquent  payments  had been made as  agreed.  For  documentation,  an
                  Amortization  Schedule  from date of default  through  liquidation  breaking out the net
                  interest and servicing fees advanced is required.

         3.       Accrued  Servicing Fees based upon the Scheduled  Principal Balance of the Mortgage Loan
                  as calculated on a monthly basis. For documentation,  an Amortization Schedule from date
                  of  default  through  liquidation  breaking  out the net  interest  and  servicing  fees
                  advanced is required.

         4-12.    Complete as applicable.  Required documentation:

                  *  For  interest  advances  -  an  amortization  schedule  (evidencing   calculation  of
                  interest advances)

                  * For  taxes  and  insurance  advances  - see  page 2 of 332 form -  breakdown  required
                  showing period

                     of  coverage,  base  tax,  interest,  penalty.  Advances  prior  to  default  require
                     evidence of servicer efforts to recover advances.

                  *  For escrow advances - complete payment history

                      (to calculate advances from last positive escrow balance forward)

                  *  Other expenses -  copies of corporate advance history showing all payments

                  *  REO repairs &gt; $1500 require explanation

                  *  REO repairs &gt;$3000 require evidence of at least 2 bids.

                  * Short Sale or Charge Off  require  P&L  supporting  the  decision  and WFB's  approved
                  officer cert

                  *  Unusual or extraordinary items may require further documentation.

         13.      The total of lines 1 through 12.

         (c)      Credits:

         14-21.   Complete as applicable.  Required documentation:

                  * Copy of the HUD 1 from the REO sale.  If a 3rd Party  Sale bid  instructions,  copy of
                  attorney letter of Foreclosure proceeds.

                  *  Copy of EOB for any MI or gov't guarantee

                  *  All other credits need to be clearly defined on the 332 form

         22.      The total of lines 14 through 21.

         Please Note:      For HUD/VA  loans,  use line (18a) for Part  A/Initial  proceeds and line (18b)
                           for Part B/Supplemental proceeds.

         Total Realized Loss (or Amount of Any Gain)
    23. The total derived from subtracting line 22 from 13. If the amount represents a realized gain,
                                   show the amount in parenthesis ( ).

                                                EXHIBIT M

                                    ADDITIONAL DISCLOSURE NOTIFICATION

Wells Fargo Bank, N.A. as Securities Administrator
9062 Old Annapolis Road
Columbia, Maryland 21045
Fax: (410) 715-2380
E-mail:  cts.sec.notifications@wellsfargo.com

Attn:  Corporate Trust Services - Newcastle 2007-1-SEC REPORT PROCESSING

RE:  **Additional Form [  ] Disclosure**Required

Ladies and Gentlemen:

         In accordance with Section 4.02 of the Sale and Servicing  Agreement,  dated as of July 12, 2007,
among Bear Stearns Asset Backed Securities I LLC, Newcastle Mortgage  Securities Trust 2007-1,  Nationstar
Mortgage LLC,  Wells Fargo Bank, N.A and The Bank of New York, the  undersigned  hereby  notifies you that
certain events have come to our attention that [shall][may] need to be disclosed on Form [   ].

Description of Additional Form [   ] Disclosure:

List of Any Attachments hereto to be included in the Additional Form [  ] Disclosure:

         Any inquiries related to this notification should be directed to [   ], phone number:  [   ];
email address:  [   ].

                                                              [NAME OF PARTY]
                                                              as [role]

                                                              By: ________________________________
                                                                  Name:
                                                                  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}]]