Document:

Trust Agreement

 Exhibit 10.2 
  
 EXECUTION 
  
 TRUST AGREEMENT 
  
 among 
  
 HMB
ACCEPTANCE CORP., 
 as Depositor, 
  
 WILMINGTON TRUST COMPANY, 
 as Owner Trustee

  
 and 
  
 U.S. BANK NATIONAL ASSOCIATION, 
 as Administrator 
  
 Dated as of February 1, 2005 
  
 HOMEBANC MORTGAGE TRUST 2005-1 
 Mortgage Backed Notes 

 TABLE OF CONTENTS 
  

			
	 	  	Page

	 ARTICLE I DEFINITIONS

	 Section 1.01. Definitions.
	  	1
	 Section 1.02. Other Definitional Provisions.
	  	4
	
	 ARTICLE II ORGANIZATION

		
	 Section 2.01. Name.
	  	5
	 Section 2.02. Office.
	  	5
	 Section 2.03. Purpose and Powers.
	  	5
	 Section 2.04. Appointment of the Owner Trustee.
	  	6
	 Section 2.05. Initial Capital Contribution; Declaration of Trust.
	  	6
	 Section 2.06. Initial Beneficiary.
	  	6
	 Section 2.07. Liability of the Holder of the Ownership Certificate.
	  	6
	 Section 2.08. Situs of Trust.
	  	7
	 Section 2.09. Title to Trust Property.
	  	7
	 Section 2.10. Representations and Warranties of the Depositor.
	  	7
	 Section 2.11. Tax Administration.
	  	8
	 Section 2.12. Investment Company.
	  	9
	
	 ARTICLE III THE OWNERSHIP CERTIFICATE AND TRANSFERS OF INTERESTS

		
	 Section 3.01. The Ownership Certificate.
	  	9
	 Section 3.02. Execution, Authentication and Delivery of the Ownership Certificate.
	  	9
	 Section 3.03. Registration of and Limitations on Transfers and Exchanges of the Ownership Certificate.
	  	9
	 Section 3.04. Lost, Stolen, Mutilated or Destroyed Ownership Certificate.
	  	12
	 Section 3.05. Persons Deemed Certificateholders.
	  	12
	 Section 3.06. Access to List of Certificateholders’ Names and Addresses.
	  	12
	 Section 3.07. Maintenance of Office or Agency.
	  	12
	 Section 3.08. Certificate Paying Agent.
	  	13
	
	 ARTICLE IV APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

		
	 Section 4.01. Certificate Distribution Account.
	  	14
	 Section 4.02. Application of Trust Funds.
	  	15
	 Section 4.03. Method of Payment.
	  	15
	 Section 4.04. Segregation of Moneys; No Interest.
	  	15
	
	 ARTICLE V AUTHORITY AND DUTIES OF THE OWNER TRUSTEE; ACTION
BY
 CERTIFICATEHOLDERS

		
	 Section 5.01. General Authority.
	  	15
	 Section 5.02. General Duties.
	  	16

  

 i 

			
	 Section 5.03. Action Upon Instruction.
	  	16
	 Section 5.04. No Duties Except as Specified under Specified Documents or in Instructions.
	  	17
	 Section 5.05. Restrictions.
	  	17
	 Section 5.06. Prior Notice to the Holder with Respect to Certain Matters.
	  	17
	 Section 5.07. Action by the Holder with Respect to Bankruptcy.
	  	20
	 Section 5.08. Restrictions on the Holder’s Power.
	  	20
	
	 ARTICLE VI CONCERNING THE OWNER TRUSTEE

		
	 Section 6.01. Acceptance of Trusts and Duties.
	  	20
	 Section 6.02. Furnishing of Documents.
	  	21
	 Section 6.03. Books and Records.
	  	21
	 Section 6.04. Representations and Warranties.
	  	21
	 Section 6.05. Reliance; Advice of Counsel.
	  	23
	 Section 6.06. Not Acting in Individual Capacity.
	  	23
	 Section 6.07. Owner Trustee Not Liable for Ownership Certificate or Collateral.
	  	24
	 Section 6.08. Owner Trustee May Own Ownership Certificate and Notes.
	  	24
	 Section 6.09. Licenses.
	  	24
	 Section 6.10. Doing Business in Other Jurisdictions.
	  	24
	
	 ARTICLE VII INDEMNIFICATION AND COMPENSATION

		
	 Section 7.01. Trust Expenses.
	  	25
	 Section 7.02. Indemnification.
	  	25
	 Section 7.03. Compensation.
	  	26
	 Section 7.04. Lien on Trust Estate.
	  	26
	
	 ARTICLE VIII TERMINATION OF AGREEMENT

		
	 Section 8.01. Termination of Agreement.
	  	26
	
	 ARTICLE IX SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

		
	 Section 9.01. Eligibility Requirements for Owner Trustee.
	  	27
	 Section 9.02. Resignation or Removal of Owner Trustee.
	  	27
	 Section 9.03. Successor Owner Trustee.
	  	28
	 Section 9.04. Merger or Consolidation of Owner Trustee.
	  	28
	 Section 9.05. Appointment of Co-Trustee or Separate Trustee.
	  	29
	
	 ARTICLE X MISCELLANEOUS

		
	 Section 10.01. Supplements and Amendments.
	  	30
	 Section 10.02. No Legal Title to Trust Estate in Holder.
	  	31
	 Section 10.03. Pledge of Collateral by Owner Trustee is Binding.
	  	31
	 Section 10.04. Limitations on Rights of Others.
	  	31
	 Section 10.05. Notices.
	  	32
	 Section 10.06. Severability.
	  	32
	 Section 10.07. Separate Counterparts.
	  	32

  

 ii 

			
	 Section 10.08. Successors and Assigns.
	  	32
	 Section 10.09. Headings.
	  	32
	 Section 10.10. Governing Law.
	  	32
	 Section 10.11. No Petition.
	  	32
	 Section 10.12. No Recourse.
	  	33
	 Section 10.13. Reporting Requirements of the Commission and Indemnification.
	  	33
	
	 ARTICLE XI OFFICERS

		
	 Section 11.01. Appointment of Officers.
	  	33
	 Section 11.02. Officers to Provide Information to the Owner Trustee.
	  	34

  

			
	 EXHIBITS:

		
	 Exhibit A
	  	 Form of Ownership Certificate

	 Exhibit B
	  	 Form of Certificate of Trust

	 Exhibit C
	  	 Form of Rule 144A Investment Letter

	 Exhibit D
	  	 Owner Trustee Fee Letter Agreement

  

 iii 

 This TRUST AGREEMENT dated as of February 1, 2005, is by and among HMB ACCEPTANCE CORP., a Delaware
corporation (the “Depositor”), WILMINGTON TRUST COMPANY, a Delaware banking corporation, as Owner Trustee (the “Owner Trustee”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as Administrator (the
“Administrator”). 
  
 WHEREAS, pursuant to the Transfer
and Servicing Agreement entered into simultaneously with this Trust Agreement, Depositor intends to sell, transfer and assign to a Delaware statutory trust created hereunder certain Mortgage Loans and related assets (collectively, the
“Collateral”), which statutory trust would then pledge such Collateral under an indenture in order to secure the issuance of the HomeBanc Mortgage Trust 2005-1 Mortgage-Backed Notes (the “Notes”), the net proceeds of which would
be applied toward the purchase of the Collateral. 
  
 WHEREAS, the
Depositor, the Owner Trustee and the Administrator desire to enter into this Agreement in order to effect the foregoing. 
  
 NOW THEREFORE, in consideration of the premises and mutual agreements herein contained, the parties hereto hereby agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 Section 1.01. Definitions. For all purposes of this Agreement, the following terms shall have the meanings set forth below. 
  
 Actual Knowledge: With respect to the Owner Trustee, any officer within the Corporate Trust Office of the Owner Trustee responsible for
administering the Trust hereunder, or under the Operative Agreements, who has actual knowledge of an action taken or an action not taken with regard to the Trust. Actions taken or actions not taken of which the Owner Trustee should have had
knowledge, or has constructive knowledge, do not meet the definition of Actual Knowledge hereunder. With respect to the Administrator, any Responsible Officer of the Administrator who has actual knowledge of an action taken or an action not taken
with regard to the Trust. Actions taken or actions not taken of which the Administrator should have had knowledge, or has constructive knowledge, do not meet the definition of Actual Knowledge hereunder. 
  
 Administrator: U.S. Bank National Association, or any successor in
interest. 
  
 Agreement or Trust Agreement: This
Trust Agreement and any amendments or modifications hereof. 
  
 Authorized Officer: With respect to the Trust, any officer of the Owner Trustee who is authorized to act for the Owner Trustee in matters relating to the Trust and who is identified on the list of Authorized Officers delivered by the
Owner Trustee to the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time to time thereafter) and, so long as the Administration Agreement is in effect, any Vice President, Assistant Vice President, Trust
Officer, or more senior officer of the Administrator who is authorized to act for the 

 
Administrator in matters relating to the Trust and to be acted upon by the Administrator pursuant to the Administration Agreement and who is identified on
the list of Authorized Officers delivered by the Administrator to the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time to time thereafter). 
  
 Bank: Wilmington Trust Company in its individual capacity and not as Owner Trustee under this Agreement. 

 
 Certificate: Any Ownership Certificate issued pursuant to this
Agreement. 
  
 Certificate Distribution Account: The
certificate distribution account maintained by or on behalf of the Administrator for the benefit of the Trust and the Certificateholders pursuant to Section 4.01. 
  
 Certificate of Trust: The Certificate of Trust to be filed by the Owner Trustee for the Trust pursuant to Section
3810(a) of the Delaware Trust Statute in the form of Exhibit B hereto. 
  
 Certificate Paying Agent: Initially, the Administrator, in its capacity as Certificate Paying Agent, or any successor to the Administrator in such capacity. 
  
 Certificate Register: The register maintained by the Certificate Registrar in which the Certificate Registrar shall
provide for the registration of the Ownership Certificate and of transfers and exchanges of such Ownership Certificate. 
  
 Certificate Registrar: Initially, the Administrator, in its capacity as Certificate Registrar, or any successor to the Administrator in such
capacity. 
  
 Certificateholder or Holder: The Person in
whose name an Ownership Certificate is registered in the Certificate Register. 
  
 Collateral: As defined in the Indenture. 
  
 Corporate Trust Office: With respect to (i) the Owner Trustee, the principal corporate trust office of the Owner Trustee located at Rodney Square North, 1100 North Market Street, Wilmington, Delaware
19890-0001, or at such other address in the State of Delaware as the Owner Trustee may designate by notice to the Administrator and the Certificateholder, or the principal corporate trust office of any successor Owner Trustee (the address (which
shall be in the State of Delaware) of which the successor owner trustee will notify the Administrator and the Certificateholder); (ii) the Administrator, the principal corporate trust office of the Administrator at which, at any particular time, its
corporate trust business shall be administered, which office at the date hereof for purposes of transfers and exchanges and for presentment and surrender of the Ownership Certificate and for payment thereof is located at U.S. Bank National
Association, One Federal Street, Third Floor, Boston, Massachusetts 02110, Attention: Corporate Trust Services/HomeBanc 2005-1; and (iii) the Certificate Registrar, the principal office of the Certificate Registrar at which at any particular time
its corporate trust business shall be administered, which office at the date of execution of this Agreement is located at the Corporate Trust Office of the Administrator, or at such other address as the Certificate Registrar may designate from time
to time by notice to the Securityholders and the Trust, or the principal corporate trust office of any successor Certificate Registrar at the address designated by such successor Certificate Registrar by notice to the Securityholders and the Trust.

  

 2 

 Delaware Trust Statute: Chapter 38 of Title 12 of the Delaware Code, 12 Del.C. Section 3801 et
seq., as the same may be amended from time to time. 
  
 Depositor: HMB Acceptance Corp., a Delaware corporation. 
  
 ERISA: The Employee Retirement Income Security Act of 1974, as amended. 
  
 Indenture: The indenture dated as of February 1, 2005, between the Issuer and the Indenture Trustee, as such may be amended or supplemented from
time to time. 
  
 Indenture Trustee: U.S. Bank National
Association, not in its individual capacity but solely as Indenture Trustee, or any successor in interest. 
  
 Initial Holder: HMB Acceptance Corp., or any successor in interest. 
  
 Liabilities: The meaning specified in Section 7.02. 
  
 Master Servicer: Wells Fargo Bank, N.A., or any successor in interest.

  
 Net Proceeds from the Notes: The proceeds received by
the Trust from time to time from the issuance and sale of its Notes, less the costs and expenses incurred in connection with the issuance and sale of such Notes. 
  
 Non-U.S. Person: Any person other than a “United States person” as defined in Section 7701(a)(30) of the
Code. 
  
 Officer: Those officers of the Trust referred to
in Article XI. 
  
 Opinion of Counsel: One or more written
opinions of counsel who may, except as otherwise expressly provided in this Agreement, be employees of or counsel to the Depositor and who shall be satisfactory to the Owner Trustee and the Administrator, which opinion shall be addressed to the
Owner Trustee and the Administrator. 
  
 Ownership
Certificate: An equity certificate representing a 100% undivided beneficial interest in the Trust in substantially the form annexed hereto as Exhibit A. 
  
 Owner Trustee: Wilmington Trust Company, a Delaware banking corporation, and any successor in interest, not in its individual capacity, but solely
as owner trustee under the Trust Agreement. 
  
 Percentage
Interest: With respect to any Ownership Certificate, the percentage set forth on the face thereof. 
  
 Proposer: The Certificateholder making a written request pursuant to Section 5.07. 
  

 3 

 Prospective Holder: Each prospective purchaser and any subsequent transferee of the Ownership
Certificate. 
  
 Responsible Officer: With respect to (i)
the Owner Trustee, any officer within the Corporate Trust Office of the Owner Trustee with direct responsibility for the administration of the Trust and also, with respect to a particular matter, any other officer to whom such matter is referred
because of such officer’s knowledge of, and familiarity with, the particular subject; and (ii) the Administrator, any officer within the Corporate Trust Office of the Administrator with direct responsibility for the administration of the Trust
and also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s knowledge of, and familiarity with, the particular subject. 
  
 Secretary of State: The Secretary of State of the State of Delaware. 
  
 Seller: HomeBanc Corp. 
  
 Single Certificate: An Ownership Certificate representing a 100%
Percentage Interest. 
  
 Transfer and Servicing Agreement:
The Transfer and Servicing Agreement dated as of February 1, 2005, by and among the Trust, as Issuer, HMB Acceptance Corp., as Depositor, HomeBanc Corp., as Seller and Servicer, Wells Fargo Bank, N.A., as Master Servicer and Securities
Administrator, and U.S. Bank National Association, as Indenture Trustee, as such may be amended or supplemented from time to time. 
  
 Trust: The trust established pursuant to this Agreement which shall carry on its business operations under the name of “HomeBanc Mortgage
Trust 2005-1.” 
  
 Section 1.02. Other Definitional
Provisions. 
  
 Capitalized terms used herein and not defined
herein shall have the same meanings assigned to them in the Transfer and Servicing Agreement or in the Indenture, as applicable. 
  
 (a) All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto
unless otherwise defined therein. 
  
 (b) As used in this
Agreement and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in this Agreement or in any such certificate or other document, and accounting terms partly defined in this Agreement or in
any such certificate or other document to the extent not defined, shall have the respective meanings given to them under generally accepted accounting principles. To the extent that the definitions of accounting terms in this Agreement or in any
such certificate or other document are inconsistent with the meanings of such terms under generally accepted accounting principles, the definitions contained in this Agreement or in any such certificate or other document shall control. 

 
 (c) The words “hereof,” “herein,”
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of 

  

 4 

 
this Agreement; Section and Exhibit references contained in this Agreement are references to Sections and Exhibits in or to this Agreement unless otherwise
specified; and the term “including” shall mean “including without limitation.” 
  
 (d) The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as
the feminine and neuter genders of such terms. 
  
 (e) Any
agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in
the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; references to a Person are also to its permitted successors and assigns. 
  
 ARTICLE II 
 ORGANIZATION 
  
 Section 2.01. Name. The trust
established under this Agreement shall be referred to as “HomeBanc Mortgage Trust 2005-1” in which name the Owner Trustee and the Officers may conduct the activities contemplated hereby, including the making and executing of contracts and
other instruments on behalf of the Trust and sue and be sued. 
  
 Section 2.02. Office. The principal office of the Trust shall be in care of the Owner Trustee, at its Corporate Trust Office. The Trust shall also have an office in care of the Administrator at its Corporate Trust Office. 

 
 Section 2.03. Purpose and Powers. The Trust shall have the power
and authority to engage in any of the following activities: 
  
 (a) to issue one or more Classes of Notes from time to time pursuant to the Indenture and the Ownership Certificate pursuant to this Agreement and to sell, transfer and exchange such Notes and such Ownership Certificate; 
  
 (b) with the proceeds of the sale of the Notes and the Ownership Certificate,
to pay the organizational, start-up and transactional expenses of the Trust and to pay the balance of the Net Proceeds from the Notes to the Depositor in consideration of the transfer to the Trust of the Collateral; 
  
 (c) to assign, grant, transfer, pledge, mortgage and convey the Trust Estate
pursuant to the Indenture and to hold, manage and distribute to the Certificateholder pursuant to the terms of the Transfer and Servicing Agreement any portion of the Collateral released from the lien of, and remitted to the Trust pursuant to, the
Indenture; 
  
 (d) to enter into and perform its obligations under
the Operative Agreements and any Cap Agreement to which it is to be a party; 
  

 5 

 (e) to engage in those activities, including entering into agreements, that are necessary, suitable or
convenient to accomplish the foregoing or are incidental thereto or connected therewith; and 
  
 (f) subject to compliance with the Operative Agreements, to engage in such other activities as may be required in connection with conservation of the Trust Estate and the making of distributions and payments to the
Certificateholders and the Noteholders. 
  
 The Trust is hereby
authorized to engage in the foregoing activities. The Trust shall not engage in any activity other than in connection with the foregoing or other than as required or authorized by the terms of this Agreement or the Operative Agreements. 

 
 Section 2.04. Appointment of the Owner Trustee. The Depositor
hereby appoints the Bank to act as owner trustee (the “Owner Trustee”) of the Trust effective as of the date hereof to have all the rights, powers and duties set forth herein with respect to accomplishing the purposes of the Trust.

  
 The Owner Trustee is hereby authorized to execute this
Agreement, the Indenture, the Administration Agreement, the Transfer and Servicing Agreement and any other Operative Agreement on behalf of the Trust. The Owner Trustee is hereby authorized to take all actions required or permitted to be taken by it
in accordance with the terms of this Agreement. 
  
 Section 2.05.
Initial Capital Contribution; Declaration of Trust. 
  
 (a) The Depositor hereby sells, assigns, transfers, conveys and sets over to the Trust, as of the date hereof, the sum of $1. The Owner Trustee hereby acknowledges receipt in trust from the Depositor, as of the Closing Date, of the
foregoing contribution which shall constitute the initial corpus of the Trust Estate and shall be deposited in the Certificate Distribution Account. The Depositor shall pay organizational expenses of the Trust as they may arise or shall, upon the
request of the Owner Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the Owner Trustee. 
  
 (b) The Owner Trustee hereby declares that it will hold the Trust Estate in trust upon and subject to the conditions set forth herein for the use and
benefit of the Certificateholders, subject to the obligations of the Trust under the Operative Agreements. It is the intention of the parties hereto that the Trust constitute a statutory trust under the Delaware Trust Statute and that this Agreement
constitute the governing instrument of such statutory trust. No later than the Closing Date, the Owner Trustee shall cause the filing of the Certificate of Trust with the Secretary of State. Except as otherwise provided in this Agreement, the rights
of the Certificateholders will be those of beneficial owners of the Trust. 
  
 Section 2.06. Initial Beneficiary. Upon the formation of the Trust by the contribution by the Depositor pursuant to Section 2.05 and until the issuance of the Ownership Certificate, the Depositor shall be the
sole beneficiary of the Trust. 
  
 Section 2.07. Liability of
the Holder of the Ownership Certificate. The Certificateholder shall be liable directly to and shall indemnify any injured party for all losses, claims, damages, liabilities and expenses of the Trust (including Liabilities, to the extent not
paid out of the Trust 
  

 6 

 
Estate); provided, however, that the Certificateholder shall not be liable for payments required to be made to or for any losses incurred by a
Noteholder in the capacity of an investor in the Notes. In addition, any third party creditors of the Trust (other than in connection with the obligations described in the following sentence for which the Certificateholder shall be liable) shall be
deemed third party beneficiaries of this paragraph. The Certificateholder shall be liable for any entity level taxes imposed on the Trust. The obligations of the Certificateholder under this paragraph shall be evidenced by the Ownership Certificate.

  
 Section 2.08. Situs of Trust. The Trust will be located
in the State of Delaware. All bank accounts maintained by the Owner Trustee on behalf of the Trust shall be located in the States of Delaware, New York or the jurisdiction where the Administrator maintains bank accounts with respect to collections
on the Collateral. The only office of the Trust will be as described in Section 2.02 hereof. The Trust shall not have any employees; provided, however, that nothing herein shall restrict or prohibit the Owner Trustee from having employees
within or without the State of Delaware. Payments will be received by the Trust only in Delaware, New York, the jurisdiction in which the Administrator maintains the Certificate Distribution Account or such other jurisdiction designated by the
Depositor, and payments will be made by the Trust only from the Trust Accounts or from Delaware, New York or such other jurisdiction designated by the Depositor. 
  
 Section 2.09. Title to Trust Property. 
  
 (a) Subject to the Indenture, title to all of the Trust Estate shall be vested at all times in the Trust as a separate legal
entity until this Agreement terminates pursuant to Article VIII hereof; provided, however, that if the laws of any jurisdiction require that title to any part of the Trust Estate be vested in the trustee of the Trust, then title to that part
of the Trust Estate shall be deemed to be vested in the Owner Trustee or any co-trustee or separate trustee, as the case may be, appointed pursuant to Article IX of this Agreement. 
  
 (b) The Certificateholders shall have beneficial but not legal title to any part of the Trust Estate. No transfer by
operation of law or otherwise of any interest of the Certificateholders shall operate to terminate this Agreement or the trusts created hereunder or entitle any transferee to an accounting or to the transfer to it of any part of the Trust Estate.

  
 Section 2.10. Representations and Warranties of the
Depositor. The Depositor hereby represents and warrants to the Owner Trustee and the Administrator as of the Closing Date, as follows: 
  
 (a) The Depositor is duly organized and validly existing as a corporation in good standing under the laws of the State of Delaware, with power and
authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted and had at all relevant times, and now has, power, authority and the legal right to acquire and own the
Mortgage Loans. 
  
 (b) The Depositor is duly qualified to do
business as a foreign corporation in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of property or the conduct of its business shall require such qualifications. 

 

 7 

 (c) The Depositor has the power and authority to execute and deliver any Operative Agreement to which it
is a party and to carry out its terms; the Depositor has full power and authority to sell and assign the Collateral to be sold and assigned to and deposited with the Trust and the Depositor has duly authorized such assignment and deposit to the
Trust by all necessary corporate action; and the execution, delivery and performance of this Agreement or any other Operative Agreement to which it is a party has been duly authorized by the Depositor by all necessary corporate action and, assuming
the due authorization, execution and delivery of each such agreement by the other parties thereto, each such agreement constitutes a valid and binding obligation of the Depositor, enforceable against the Depositor in accordance with its terms,
except as enforcement thereof may be subject to or limited by bankruptcy, insolvency, moratorium, reorganization or other similar laws relating to or affecting creditors’ rights generally and by general equitable principles. 
  
 (d) The consummation of the transactions contemplated by this Agreement and
the fulfillment of the terms hereof and thereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the certificate of incorporation or by-laws of
the Depositor, or any indenture, agreement or other instrument to which the Depositor is a party or by which it is bound; nor result in the creation or imposition of any lien upon any of its properties pursuant to the terms of any such indenture,
agreement or other instrument (other than pursuant to the Operative Agreements); nor violate any law or, to the best of the Depositor’s knowledge, any order, rule or regulation applicable to the Depositor of any court or of any Federal or state
regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties. 
  
 (e) There are no proceedings or investigations, pending or, to the best knowledge of the Depositor, threatened before any court, regulatory body,
administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties: (i) asserting the invalidity of this Agreement or any other Operative Agreement to which the Depositor is a party, (ii) seeking to
prevent the consummation of any of the transactions contemplated by this Agreement or any other Operative Agreement to which the Depositor is a party or (iii) seeking any determination or ruling that might materially and adversely affect the
performance by the Depositor of its obligations under, or the validity or enforceability of, this Agreement or any other Operative Agreement to which the Depositor is a party. 
  
 (f) The representations and warranties of the Depositor made pursuant to the Transfer and Servicing Agreement are true and
correct. 
  
 (g) This Agreement is not required to be qualified
under the Trust Indenture Act of 1939, as amended, and the Trust is not required to be registered as an “investment company” under the Investment Company Act of 1940, as amended. 
  
 Section 2.11. Tax Administration. In accordance with Section 5.08(c)
of the Transfer and Servicing Agreement, the Securities Administrator will perform the calculation of accrual of original issue discount and the amortization of premium on the Securities and will prepare and file the Trust’s income tax returns
and will make any other necessary tax filings under the Code. 
  

 8 

 Section 2.12. Investment Company. Neither the Depositor nor any holder of an Ownership Certificate
shall take any action which would cause the Trust to become an “investment company” which would be required to register under the Investment Company Act of 1940, as amended. 
  
 ARTICLE III 
 THE
OWNERSHIP CERTIFICATE AND TRANSFERS OF INTERESTS 
  
 Section 3.01.
The Ownership Certificate. The Ownership Certificate shall initially be issued as a single certificate in definitive, fully registered form and shall initially be registered in the name of the Initial Holder. No Ownership Certificate shall be
issued in authorized denominations of less than a 100% Percentage Interest in such Certificate. The Ownership Certificate shall be executed on behalf of the Trust by manual or facsimile signature of an Authorized Officer of the Owner Trustee and
authenticated in the manner provided in Section 3.02. An Ownership Certificate bearing the manual signatures of individuals who were, at the time when such signatures shall have been affixed, authorized to sign on behalf of the Trust, shall be
validly issued and entitled to the benefit of this Agreement, notwithstanding that such individuals or any of them shall have ceased to be so authorized prior to the authentication and delivery of such Ownership Certificate or did not hold such
offices at the date of authentication and delivery of such Ownership Certificate. A Person shall become a Certificateholder and shall be entitled to the rights and subject to the obligations of a Certificateholder hereunder upon such Person’s
acceptance of an Ownership Certificate duly registered in such Person’s name pursuant to Section 3.03. 
  
 Section 3.02. Execution, Authentication and Delivery of the Ownership Certificate. 
  
 Concurrently with the sale of the Collateral to the Trust pursuant to the Transfer and Servicing Agreement, the Owner
Trustee shall cause the Ownership Certificate issued hereunder to be executed and authenticated on behalf of the Trust and authenticated and delivered to the Initial Holder or upon the written order of the Depositor, signed by its chairman of the
board, its president or any vice president, without further corporate action by the Depositor. The Ownership Certificate shall not entitle its Holder to any benefits under this Agreement or be valid for any purpose unless there shall appear on such
Ownership Certificate a certificate of authentication substantially in the form set forth in Exhibit A hereto, executed by the Certificate Registrar, as the Owner Trustee’s authenticating agent, by manual signature; such authentication shall
constitute conclusive evidence that such Ownership Certificate shall have been duly authenticated and delivered hereunder. An Ownership Certificate shall be dated the date of its authentication. 
  
 Section 3.03. Registration of and Limitations on Transfers and Exchanges
of the Ownership Certificate. The Certificate Registrar shall keep or cause to be kept, at the office or agency maintained pursuant to Section 3.07, a Certificate Register in which, subject to such reasonable regulations as it may prescribe, the
Certificate Registrar shall provide for the registration of the Ownership Certificate and of transfers and exchanges of the Ownership Certificate as herein provided; provided, however, that no Ownership Certificate shall be issued in any such
transfer and exchange representing less than a 100% Percentage Interest in such Certificate; and provided, further, that no Ownership Certificate shall be issued in any such 

  

 9 

 
transfer and exchange except in accordance with the provisions and conditions set forth below in this Section 3.03. The Administrator shall be the initial
Certificate Registrar. If the Certificate Registrar resigns or is removed, the Owner Trustee, with the consent of the Depositor, shall appoint a successor Certificate Registrar. 
  
 Subject to satisfaction of the conditions set forth below, upon surrender for registration of transfer of an Ownership
Certificate at the office or agency maintained pursuant to Section 3.07, the Owner Trustee shall execute, authenticate and deliver (or cause the Administrator as its authenticating agent to authenticate and deliver), in the name of the designated
transferee, a new Ownership Certificate evidencing the Percentage Interest of the Ownership Certificate so surrendered and dated the date of authentication by the Owner Trustee or the Certificate Registrar. 
  
 Every Ownership Certificate presented or surrendered for registration of
transfer or exchange shall be accompanied by a written instrument of transfer in form satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the Holder or such Holder’s attorney duly authorized in writing. Each
Ownership Certificate surrendered for registration of transfer or exchange shall be cancelled and subsequently disposed of by the Certificate Registrar in accordance with its customary practice. 
  
 No service charge shall be made for any registration of transfer or exchange
of the Ownership Certificate, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer or exchange of the Ownership
Certificate or any other expense arising as a result of any registration of transfer or exchange. 
  
 The preceding provisions of this Section notwithstanding, the Owner Trustee shall not make and the Certificate Registrar shall not register transfer or
exchanges of an Ownership Certificate for a period of 15 days preceding the due date for any payment with respect to the Ownership Certificate. 
  
 No transfer of an Ownership Certificate shall be made unless such transfer is exempt from the registration requirements of the Securities Act and any
applicable state securities laws or is made in accordance with said Act and laws. Except in the case of the initial transfer to the Initial Holder, in the event of any such transfer, the Certificate Registrar or the Depositor shall prior to such
transfer require the transferee to execute an investment letter (in the form attached hereto as Exhibit C) certifying to the Trust, the Owner Trustee, the Administrator, the Certificate Registrar and the Depositor that such transferee is a
“qualified institutional buyer” under Rule 144A under the Securities Act, and any expense associated with the preparation and execution of any such investment letter shall not be an expense of the Trust, the Owner Trustee, the
Administrator, the Certificate Registrar or the Depositor. A Holder desiring to effect the transfer of an Ownership Certificate shall, and does hereby agree to, indemnify the Trust, the Owner Trustee, the Administrator, the Certificate Registrar and
the Depositor against any and all liability that may result if the transfer is not so exempt or is not made in accordance with such federal and state laws. 
  

 10 

 Except in the case of the initial transfer to the Initial Holder, no transfer of an Ownership Certificate
shall be made unless the Certificate Registrar shall have received a representation letter (in the form attached hereto as Exhibit C) from the proposed transferee of such Ownership Certificate to the effect that such proposed transferee is not an
employee benefit plan or other retirement arrangement subject to Section 406 of ERISA, or Section 4975 of the Code, or any substantially similar applicable law, or a Person acting on behalf of or using the assets of any such plan, which
representation letter shall not be an expense of the Trust, the Owner Trustee, the Administrator, the Certificate Registrar or the Depositor. 
  
 Prior to and as a condition of the registration of any transfer, sale or other disposition of the Ownership Certificate, the Initial Holder of the
Ownership Certificate and each Prospective Holder of the Ownership Certificate shall represent and warrant in writing, in substantially the form set forth in Exhibit C hereto, to the Owner Trustee, the Administrator and the Certificate Registrar and
any of their respective successors that: 
  
 (i)
Such Person is duly authorized to purchase the Ownership Certificate and its purchase of investments having the characteristics of the Ownership Certificate is authorized under, and not directly or indirectly in contravention of, any law, charter,
trust instrument or other operative document, investment guidelines or list of permissible or impermissible investments that is applicable to the investor; and 
  

(ii) Such Person understands that each holder of an Ownership Certificate, by virtue of its acceptance thereof, assents to the terms,
provisions and conditions of the Agreement. 
  
 The Trust shall
cause each Certificate to contain a legend, substantially in the form of the applicable legends provided in Exhibit A hereto, stating that transfer of such Certificate is subject to certain restrictions and referring prospective purchasers of the
Certificates to this Section 3.03 with respect to such restrictions. 
  
 Notwithstanding anything to the contrary herein, no transfer, pledge or encumbrance of any Ownership Certificate shall be made to any Person unless the Owner Trustee has received an Opinion of Counsel to the effect that such transfer,
pledge or encumbrance would not have any adverse effect of the status of the Notes as debt for federal income tax purposes and would not result in the Trust’s becoming taxable for federal income tax purposes. 
  
 If any purported transferee shall become a Holder in violation of the
provisions of this Section, then upon receipt of written notice to the Certificate Registrar and the Certificate Paying Agent that the registration of transfer of the Ownership Certificate to such Holder was not in fact permitted by this Section,
then the transfer to that Holder shall be void ab initio and the last preceding Holder that was and that continues to be a eligible in accordance with the provisions of this Section shall be restored to all rights as Holder thereof
retroactive to the date of such registration of transfer of the Ownership Certificate. The Certificate Registrar shall be under no liability to any Person for any registration of transfer of an Ownership Certificate that is in fact not permitted by
this Section, for making any payment due on such Certificate to the Holder thereof or for taking any other action with respect to such Holder under the provisions of this Agreement so long as the transfer was registered upon receipt of the affidavit
described in the immediately preceding paragraph. 
  

 11 

 Section 3.04. Lost, Stolen, Mutilated or Destroyed Ownership Certificate. If (a) a mutilated
Ownership Certificate is surrendered to the Certificate Registrar, or (b) the Certificate Registrar receives evidence to its satisfaction that an Ownership Certificate has been destroyed, lost or stolen, and there is delivered to the Certificate
Registrar proof of ownership satisfactory to the Certificate Registrar, together with such security or indemnity as required by the Certificate Registrar and the Owner Trustee to save each of them harmless, then in the absence of notice to the
Certificate Registrar or the Owner Trustee that such Ownership Certificate has been acquired by a protected purchaser, the Owner Trustee shall execute on behalf of the Trust, and the Owner Trustee or the Certificate Registrar shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Ownership Certificate, a new Ownership Certificate of like tenor and Percentage Interest. In connection with the issuance of any new Ownership Certificate under
this Section 3.04, the Owner Trustee or the Certificate Registrar may require the payment of a sum sufficient to cover any expenses of the Owner Trustee or the Certificate Registrar (including any fees and expenses of counsel) and any tax or other
governmental charge that may be imposed in connection therewith. Any duplicate Ownership Certificate issued pursuant to this Section 3.04 shall constitute conclusive evidence of ownership in the Trust, as if originally issued, whether or not the
lost, stolen or destroyed Ownership Certificate shall be found at any time. 
  
 Section 3.05. Persons Deemed Certificateholders. Prior to due presentation of an Ownership Certificate for registration of transfer, the Owner Trustee, the Certificate Registrar or any Certificate Paying Agent
may treat the Holder as the owner of such Ownership Certificate for the purpose of receiving distributions pursuant to Section 4.02 and for all other purposes whatsoever, and none of the Trust, the Owner Trustee, the Certificate Registrar or any
Certificate Paying Agent shall be bound by any notice to the contrary. 
  
 Section 3.06. Access to List of Certificateholders’ Names and Addresses. The Certificate Registrar shall furnish or cause to be furnished to the Depositor, the Certificate Paying Agent or the Owner Trustee, within 15 days after
receipt by the Certificate Registrar of a written request therefor from the Depositor, the Certificate Paying Agent or the Owner Trustee, in such form as the Depositor or the Owner Trustee, as the case may be, may reasonably require, of the name and
address of the Holder as of the most recent Record Date. A Holder, by receiving and holding an Ownership Certificate, shall be deemed to have agreed not to hold any of the Trust, the Depositor, the Certificate Registrar, the Certificate Paying Agent
or the Owner Trustee accountable or liable for damages by reason of the disclosure of its name and address, regardless of the source from which such information was derived. 
  
 Section 3.07. Maintenance of Office or Agency. The Certificate Registrar on behalf of the Trust, shall maintain an
office or offices or agency or agencies where an Ownership Certificate may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Owner Trustee in respect of the Ownership Certificate and the Operative
Agreements may be served. The Certificate Registrar shall give the Owner Trustee prompt notice, in writing, of any such notice or demand. The Certificate Registrar initially designates the Corporate Trust Office of the Administrator as its office
for such purposes. The Certificate 

  

 12 

 
Registrar shall give prompt written notice to the Depositor, the Owner Trustee, the Certificate Paying Agent and the Certificateholders of any change in the
location of the Certificate Register or any such office or agency. 
  
 Section 3.08. Certificate Paying Agent. 
  
 (a)
The Owner Trustee may appoint, and hereby appoints, the Administrator as Certificate Paying Agent under this Agreement. The Certificate Paying Agent shall make distributions to the Holder from the Certificate Distribution Account pursuant to Section
4.02 hereof and Section 6.02 of the Transfer and Servicing Agreement and, upon request, shall report the amounts of such distributions to the Owner Trustee. The Certificate Paying Agent shall have the revocable power to withdraw funds from the
Certificate Distribution Account for the purpose of making the distributions referred to above. The Administrator hereby accepts such appointment and further agrees that it will be bound by the provisions of this Agreement and the Transfer and
Servicing Agreement relating to the Certificate Paying Agent and shall: 
  
 (i) hold all sums held by it for the payment of amounts due with respect to the Ownership Certificate in trust for the benefit of the Person entitled thereto until such sums shall be paid to such Person or otherwise
disposed of as herein provided; 
  
 (ii) give the
Owner Trustee notice of any default by the Trust of which a Responsible Officer of the Administrator has actual knowledge in the making of any payment required to be made with respect to the Ownership Certificate; 
  
 (iii) at any time during the continuance of any such
default, upon the written request of the Owner Trustee forthwith pay to the Owner Trustee on behalf of the Trust all sums so held in Trust by such Certificate Paying Agent; 
  
 (iv) immediately resign as Certificate Paying Agent and forthwith pay to the Owner Trustee on behalf of the
Trust all sums held by it in trust for the payment of Ownership Certificate if at any time it ceases to meet the standards under this Section 3.08 required to be met by the Certificate Paying Agent at the time of its appointment; and 
  
 (v) comply with all requirements of the Code with respect to
the withholding from any payments made by it on the Ownership Certificate of any applicable withholding taxes imposed thereon and with respect to any applicable reporting requirements in connection therewith; provided, however, that with
respect to reporting requirements applicable to original issue discount, the accrual of market discount or the amortization of premium on the Ownership Certificate, the Securities Administrator shall have first provided the calculations pertaining
thereto and the amount of any resulting withholding taxes to the Administrator and the Certificate Paying Agent. 
  
 (vi) not institute bankruptcy proceedings against the Trust in connection with this Agreement. 
  
 (b) In the event that the Administrator shall no longer be the Certificate
Paying Agent hereunder, the Owner Trustee, with the consent of the Depositor, shall appoint a successor to act 

  

 13 

 
as Certificate Paying Agent (which shall be a bank or trust company). The Owner Trustee shall cause such successor Certificate Paying Agent or any additional
Certificate Paying Agent appointed by the Owner Trustee to execute and deliver to the Owner Trustee an instrument in which such successor Certificate Paying Agent or additional Certificate Paying Agent shall agree with the Owner Trustee that as
Certificate Paying Agent, such successor Certificate Paying Agent or additional Certificate Paying Agent will hold all sums, if any, held by it for payment in trust for the benefit of the Holder entitled thereto until such sums shall be paid to such
Holder. The Certificate Paying Agent shall return all unclaimed funds to the Owner Trustee, and upon removal of a Certificate Paying Agent, such Certificate Paying Agent shall also return all funds in its possession to the Owner Trustee. The
provisions of Sections 5.03, 5.04, 6.01, 6.05, 6.07, 6.08, 7.01 and 7.02 shall apply to the Administrator also in its role as Certificate Paying Agent for so long as the Administrator shall act as Certificate Paying Agent and, to the extent
applicable, to any other Certificate Paying Agent appointed hereunder. Any reference in this Agreement to the Certificate Paying Agent shall include any co-paying agent unless the context requires otherwise. 
  
 ARTICLE IV 
 APPLICATION OF TRUST FUNDS; CERTAIN DUTIES 
  
 Section 4.01. Certificate Distribution Account. 
  
 (a) The Administrator shall establish and maintain on behalf of the Trust and the Certificateholder, the Certificate Distribution Account. 
  
 (b) The Certificate Distribution Account shall be an Eligible Account. If the
Certificate Distribution Account ceases to be an Eligible Account, the Administrator shall establish a new Certificate Distribution Account that is an Eligible Account within 10 days and transfer all funds and investment property on deposit in such
existing Certificate Distribution Account into such new Certificate Distribution Account. 
  
 (c) The Certificate Paying Agent shall withdraw funds from the Certificate Distribution Account for payments to the Certificateholder in the manner specified in this Agreement. In addition, the Administrator may prior
to making the payment required pursuant to Section 4.02 from time to time make withdrawals from the Certificate Distribution Account for the following purposes: 
  
 (i) to withdraw funds deposited in error in the Certificate Distribution Account; and 
  
 (ii) to clear and terminate the Certificate Distribution
Account upon the termination of the Trust. 
  
 (d) All of the
right, title and interest of the Trust in all funds on deposit from time to time in the Certificate Distribution Account and in all proceeds thereof shall be held for the benefit of the Holder and such other persons entitled to payments therefrom.
Except as otherwise expressly provided herein, the Certificate Distribution Account shall be under the sole dominion and control of the Owner Trustee for the benefit of the Certificateholder. 
  

 14 

 Section 4.02. Application of Trust Funds. 
  
 (a) On each Payment Date, the Owner Trustee shall direct the Certificate
Paying Agent to distribute to the Holder, from amounts on deposit in the Certificate Distribution Account, after payment of any amounts required to be paid pursuant to Section 7.02, the distributions as provided in Section 6.02 of the Transfer and
Servicing Agreement with respect to such Payment Date. The Owner Trustee hereby directs the Certificate Paying Agent to distribute on each Payment Date to the Holder amounts on deposit in the Certificate Distribution Account in accordance with
Section 6.02 of the Transfer and Servicing Agreement and the Certificate Paying Agent hereby acknowledges such direction. 
  
 (b) All payments to be made under this Agreement by the Certificate Paying Agent shall be made only from the income and proceeds of the Trust Estate and
only to the extent that the Certificate Paying Agent has received such income or proceeds. The Certificate Paying Agent shall not be liable to any Holder, the Indenture Trustee or the Owner Trustee for any amounts payable pursuant to this Section
4.02 except to the extent that non-payment is due to the Certificate Paying Agent’s acts or omissions amounting to willful misconduct or gross negligence. 
  

(c) Distributions to the Holder shall be subordinated to the creditors of the Trust, including, without limitation, the Noteholders. 
  
 Section 4.03. Method of Payment. Subject to Section 8.01(c),
distributions required to be made to the Holder on any Payment Date as provided in Section 4.02 shall be made to the Person who was the Holder on the preceding Record Date either by wire transfer, in immediately available funds, to the account of
such Holder at a bank or other entity having appropriate facilities therefor, if the Holder shall have provided to the Certificate Registrar appropriate written instructions at least five Business Days prior to such Payment Date or, if not, by check
mailed to such Holder at the address of such Holder appearing in the Certificate Register. 
  
 Section 4.04. Segregation of Moneys; No Interest. Moneys received by or on behalf of the Owner Trustee hereunder and deposited into the Certificate Distribution Account will be segregated except to the extent
required otherwise by law or the provisions of the Transfer and Servicing Agreement. The Owner Trustee shall not be liable for payment of any interest in respect of such moneys. 
  
 ARTICLE V 
 AUTHORITY AND DUTIES OF THE OWNER TRUSTEE; 
 ACTION BY CERTIFICATEHOLDERS 
  
 Section 5.01. General Authority. The Owner Trustee is authorized and
directed to execute and deliver the Notes, the Ownership Certificate, and the other Operative Agreements to which the Trust is to be a party and each certificate or other document attached as an exhibit to or contemplated by the Operative Agreements
to which the Trust is to be a party and any amendment or other agreement or instrument described herein, as evidenced conclusively by the Owner Trustee’s execution thereof, and, on behalf of the Trust, to direct the Owner Trustee to
authenticate the Notes. In addition to the foregoing, the Owner Trustee is authorized, but shall not be obligated, to take all actions required of the Trust pursuant to the Operative Agreements. 
  

 15 

 Section 5.02. General Duties. 
  
 (a) It shall be the duty of the Owner Trustee to discharge (or cause to be discharged) all of its responsibilities pursuant
to the terms of this Agreement and the other Operative Agreements to which the Trust is a party and to administer the Trust in the interest of the Certificateholders, subject to the Operative Agreements and in accordance with the provisions of this
Agreement. Notwithstanding the foregoing, the Owner Trustee shall be deemed to have discharged its duties and responsibilities hereunder and under the Operative Agreements to the extent the Administrator has agreed in the Administration Agreement,
the Transfer and Servicing Agreement or this Agreement, respectively, to perform any act or to discharge any duty of the Owner Trustee or the Trust hereunder or under any Operative Agreement, and the Owner Trustee shall not be held liable for the
default or failure of the Administrator to carry out its obligations under the Administration Agreement, this Agreement, the Transfer and Servicing Agreement, or any other Operative Agreement, respectively; and 
  
 (b) It shall be the duty of the Depositor under the Administration Agreement
to obtain and preserve the Trust’s qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of the Indenture, the Notes, the Collateral and each other
instrument and agreement included in the Trust Estate. It shall be the duty of the Owner Trustee to cooperate with the Depositor with respect to such matters. 
  

Section 5.03. Action Upon Instruction. 
  
 (a) Subject to this Article V and in accordance with the terms of the Operative Agreements, the Holder may by written instruction direct the Owner Trustee
in the management of the Trust, but only to the extent consistent with the limited purpose of the Trust. Such direction may be exercised at any time by written instruction of the Holder pursuant to this Article V. 
  
 (b) Notwithstanding the foregoing, the Owner Trustee shall not be required to
take any action hereunder or under any Operative Agreement if the Owner Trustee shall have reasonably determined, or shall have been advised by counsel, that such action is likely to result in liability on the part of the Owner Trustee or is
contrary to the terms hereof or of any Operative Agreement or is otherwise contrary to law. 
  
 (c) Whenever the Owner Trustee is unable to decide between alternative courses of action permitted or required by the terms of this Agreement or under any other Operative Agreement, or in the event that the Owner
Trustee is unsure as to the application of any provision of this Agreement or any other Operative Agreement or any such provision is ambiguous as to its application, or is, or appears to be, in conflict with any other applicable provision, or in the
event that this Agreement permits any determination by the Owner Trustee or is silent or is incomplete as to the course of action that the Owner Trustee is required to take with respect to a particular set of facts, the Owner Trustee may promptly
give notice (in such form as 

  

 16 

 
shall be appropriate under the circumstances) to the Holder requesting instruction as to the course of action to be adopted, and to the extent the Owner
Trustee acts in good faith in accordance with any written instruction of the Holder, the Owner Trustee shall not be liable on account of such action to any Person. If the Owner Trustee shall not have received appropriate instruction within 10 days
of such notice (or within such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from taking such action not inconsistent with
this Agreement or any other Operative Agreement, as it shall deem to be in the best interests of the Holder, and the Owner Trustee shall have no liability to any Person for such action or inaction. 
  
 Section 5.04. No Duties Except as Specified under Specified Documents or
in Instructions. The Owner Trustee shall not have any duty or obligation to manage, make any payment with respect to, register, record, sell, dispose of, or otherwise deal with the Trust Estate, or to otherwise take or refrain from taking any
action under, or in connection with, any document contemplated hereby to which the Owner Trustee or the Issuer is a party, except as expressly provided (i) in accordance with the powers granted to and the authority conferred upon the Owner Trustee
pursuant to this Agreement, and (ii) in accordance with any document or instruction delivered to the Owner Trustee pursuant to Section 5.03; and no implied duties or obligations shall be read into this Agreement or any Operative Agreement against
the Owner Trustee. The Owner Trustee shall have no responsibility for filing any financing or continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any security interest or lien granted to the
Trust or to prepare or file any Securities and Exchange Commission filing for the Trust or to record this Agreement or any Operative Agreement or to prepare or file any tax return for the Trust. The Owner Trustee nevertheless agrees that it will, at
its own cost and expense, promptly take all action as may be necessary to discharge any liens on any part of the Trust Estate that result from actions by, or claims against the Bank that are not related to the ownership or the administration of the
Trust Estate. 
  
 Section 5.05. Restrictions. 

 
 (a) The Owner Trustee shall not take any action that is inconsistent with
the purposes of the Trust set forth in Section 2.03. The Holder shall not direct the Owner Trustee to take action that would violate the provisions of this Section 5.05. 
  
 (b) The Owner Trustee shall not, except as provided herein, convey or transfer any of the Trust’s properties or assets,
including those included in the Trust Estate, to any person unless such conveyance or transfer shall not violate the provisions of the Indenture. 
  
 Section 5.06. Prior Notice to the Holder with Respect to Certain Matters. With respect to the following matters, the Owner Trustee shall not take
action unless at least 30 days before the taking of such action, the Owner Trustee shall have notified the Holder in writing of the proposed action and the Holder shall have notified the Owner Trustee in writing prior to the 30th day after such
notice is given that such Holder has consented to such action or provided alternative direction: 
  
 (a) The initiation of any claim or lawsuit by the Trust (except claims or lawsuits brought in connection with the collection of cash distributions due and
owing under the Collateral) and 

  

 17 

 
the compromise of any action, claim or lawsuit brought by or against the Trust (except with respect to the aforementioned claims or lawsuits for collection
of cash distributions due and owing under the Collateral); 
  
 (b)
the election by the Trust to file an amendment to the Certificate of Trust (unless such amendment is required to be filed under the Delaware Trust Statute); 
  
 (c) the amendment of the Indenture by a supplemental indenture or of this Agreement or any other Operative Agreement in circumstances where the consent of
any Noteholder is required; 
  
 (d) the amendment or other change
of the Indenture by a supplemental indenture or of this Agreement, any Cap Agreement or any other Operative Agreement in circumstances where the consent of any Noteholder is not required and such amendment materially adversely affects the interests
of the Holder; 
  
 (e) the amendment of the Transfer and Servicing
Agreement in circumstances where the consent of any Securityholder is required; 
  
 (f) the amendment, change or modification of the Administration Agreement, except to cure any ambiguity or to amend or supplement any provision in a manner or add any provision that would not materially and adversely
affect the interests of the Holder; 
  
 (g) the appointment
pursuant to the Indenture of a successor Note Registrar, Paying Agent or Indenture Trustee or pursuant to this Agreement of a successor Certificate Registrar or Certificate Paying Agent or the consent to the assignment by the Note Registrar, Paying
Agent, Indenture Trustee, Certificate Registrar or Certificate Paying Agent of its obligations under the Indenture or this Agreement, as applicable; 
  
 (h) the consent to the calling or waiver of any default of any Operative Agreement; 
  
 (i) the consent to the assignment by the Indenture Trustee of its obligations under any Operative Agreement; 
  
 (j) except as provided in Article VIII hereof, dissolve, terminate or
liquidate the Trust in whole or in part; 
  
 (k) the merger,
conversion or consolidation of the Trust with or into any other entity, or conveyance or transfer of all or substantially all of the Trust’s assets to any other entity; 
  
 (l) the incurrence, assumption or guaranty by the Trust of any indebtedness other than as set forth in this Agreement;

  
 (m) the taking of any action which conflicts with any
Operative Agreement or would make it impossible to carry on the ordinary business of the Trust or change the Trust’s purpose and powers set forth in this Agreement; 
  
 (n) the confession of a judgment against the Trust; 
  

 18 

 (o) the possession of the Trust assets, or assignment of the Trust’s right to property, for other
than a Trust purpose; or 
  
 (p) the lending of funds by the Trust
to any entity. 
  
 In addition, the Trust shall not commingle its
assets with those of any other entity. The Trust shall maintain its financial and accounting books and records separate from those of any other entity. Except as expressly set forth herein, the Trust shall pay its indebtedness, operating expenses
and liabilities from its own funds, and the Trust shall neither incur any indebtedness nor pay the indebtedness, operating expenses and liabilities of any other entity. Except as expressly set forth herein, the Trust shall not engage in any
dissolution, liquidation, consolidation, merger or sale of assets. The Trust shall maintain appropriate minutes or other records of all appropriate actions and shall maintain its office separate from the offices of the Depositor or any of its
Affiliates. The Trust shall not engage in any business activity in which it is not currently engaged other than as contemplated by the Operative Agreements and related documentation. The Trust shall not form, or cause to be formed, any subsidiaries
and shall not own or acquire any asset other than as contemplated by the Operative Agreements and related documentation. Other than as contemplated by the Operative Agreements and related documentation, the Trust shall not follow the directions or
instructions of the Depositor. The Trust shall conduct its own business in its own name. The Trust shall observe all formalities required under the Delaware Trust Statute. The Trust shall not hold out its credit as being available to satisfy the
obligations of any other person or entity. The Trust shall not acquire the obligations or securities of its Affiliates or the Seller. Other than as contemplated by the Operative Agreements and related documentation, the Trust shall not pledge its
assets for the benefit of any other person or entity. The Trust shall correct any known misunderstanding regarding its separate identity. The Trust shall not identify itself as a division of any other person or entity. 
  
 For accounting purposes, the Trust shall be treated as an entity separate and
distinct from the Holder. The pricing and other material terms of all transactions and agreements to which the Trust is a party shall be intrinsically fair to all parties thereto. This Agreement is and shall be the only agreement among the parties
thereto with respect to the creation, operation and termination of the Trust. 
  
 The Owner Trustee shall not have the power, except upon the written direction of the Holder, and to the extent otherwise consistent with the Operative Agreements, to (i) remove or replace the Indenture Trustee, or
(ii) institute a bankruptcy against the Trust. So long as the Indenture remains in effect, to the extent permitted by applicable law, the Holder shall have no power to commence, and shall not commence, any bankruptcy with respect to the Trust or
direct the Owner Trustee to commence any bankruptcy with respect to the Trust. 
  
 (q) The Owner Trustee shall not have the power, except upon the written direction of the Holder, to (i) remove the Administrator under the Administration Agreement pursuant to Section 9 thereof, (ii) appoint a
successor Administrator pursuant to Section 9 of the Administration Agreement, or (iii) except as expressly provided in the Indenture, to sell the Collateral after the termination of the Indenture. The Owner Trustee shall take the actions referred
to in the preceding sentence only upon written instructions signed and authorized by the Holder. 
  

 19 

 Section 5.07. Action by the Holder with Respect to Bankruptcy. The Owner Trustee shall not have
the power to commence or consent to a bankruptcy relating to the Trust without the prior approval of the Holder and the delivery to the Owner Trustee by the Holder of a certificate certifying that the Holder reasonably believes that the Trust is
insolvent. This paragraph shall survive for one year and one day following termination of this Agreement. So long as the Indenture remains in effect, the Holder shall not have the power to institute, and shall not institute, any bankruptcy with
respect to the Trust or direct the Owner Trustee to take such action. 
  
 Section 5.08. Restrictions on the Holder’s Power. The Holder shall not direct the Owner Trustee to take or to refrain from taking any action if such action or inaction would be contrary to any obligation of the Trust or the
Owner Trustee under this Agreement or any of the Operative Agreements or would be contrary to Section 2.03 nor shall the Owner Trustee be obligated to follow any such direction, if given. 
  
 ARTICLE VI 
 CONCERNING THE OWNER TRUSTEE 
  
 Section 6.01.
Acceptance of Trusts and Duties. The Owner Trustee accepts the trusts hereby created and agrees to perform the same but only upon the terms of this Agreement. The Owner Trustee also agrees to disburse all moneys actually received by it
constituting part of the Trust Estate upon the terms of this Agreement. The Bank shall not be answerable or accountable hereunder or under any other Operative Agreements under any circumstances, except (i) for its own willful misconduct, gross
negligence or bad faith, (ii) in the case of the inaccuracy of any representation or warranty contained in Section 6.04, (iii) for liabilities arising from the failure by the Bank to perform obligations expressly undertaken by it in the last
sentence of Section 5.04, or (iv) for taxes, fees or other charges based on or measured by any fees, commissions or compensation received by the Bank in connection with any of the transactions contemplated by this Agreement, any other Operative
Agreements or the Notes. In particular, but not by way of limitation: 
  
 (a) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer of the Owner Trustee; 
  
 (b) The Bank shall not be liable with respect to any action taken or omitted to be taken by the Owner Trustee in accordance with the instructions of the
Holder; 
  
 (c) No provision of this Agreement shall require the
Bank to expend or risk funds or otherwise incur any financial liability in the performance of any of the Owner Trustee’s rights or powers hereunder or under any other Operative Agreements if the Bank shall have reasonable grounds for believing
that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured or provided to it; 
  
 (d) Under no circumstance shall the Bank be liable for indebtedness evidenced by or arising under any of the Operative Agreements, including the principal
of and interest on the Notes; 
  

 20 

 (e) The Bank shall not be liable with respect to any action taken or omitted to be taken by the
Depositor, the Administrator, the Master Servicer, the Indenture Trustee, any Officer or the Certificate Paying Agent under this Agreement or any other Operative Agreement or otherwise and the Bank shall not be obligated to perform or monitor the
performance of any obligations or duties under this Agreement or the other Operative Agreements which are to be performed by the Certificate Paying Agent under this Agreement, the Administrator under the Administration Agreement, the Indenture
Trustee under the Indenture or by any other Person under any of the Operative Agreements; and 
  
 (f) The Bank shall not be responsible for or in respect of the recitals herein, the validity or sufficiency of this Agreement or for the due execution hereof by the Depositor or for the form, character, genuineness,
sufficiency, value or validity of any of the Trust Estate or for or in respect of the validity or sufficiency of the Operative Agreements, other than the certificate of authentication on the Ownership Certificate, and the Bank shall in no event
assume or incur any liability, duty or obligation to any Noteholder, the Depositor or to the Holder, other than as expressly provided for herein. 
  
 Section 6.02. Furnishing of Documents. The Owner Trustee will furnish to the Administrator (for distribution to the Holder), promptly upon receipt
of a written request therefor, duplicates or copies of all reports, notices, requests, demands, certificates, financial statements and any other instruments furnished to the Owner Trustee hereunder or under the Operative Agreements unless the
Administrator shall have already received the same. 
  
 Section
6.03. Books and Records. The Owner Trustee shall keep or cause to be kept proper books of record and account of all the transactions under this Agreement, including a record of the name and address of the Holder. The Owner Trustee shall be
deemed to have complied with this Section 6.03 by the appointment of the Administrator and the Certificate Paying Agent to perform the duties hereunder. 
  
 Section 6.04. Representations and Warranties. 
  
 (a) The Bank represents and warrants to the Depositor, for the benefit of the Holder, as follows: 
  
 (i) the Bank is a banking corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware and has the power and authority to execute, deliver and perform its obligations under this Agreement and (assuming due authorization, execution and delivery of this
Agreement by the Depositor and Administrator), has the power and authority as Owner Trustee to execute and deliver the Operative Agreements and to perform its obligations thereunder and, assuming the due authorization, execution and delivery hereof
by the other parties hereto, this Agreement constitutes a legal, valid and binding obligation of the Bank or the Owner Trustee, as the case may be, enforceable against the Bank or the Owner Trustee, as the case may be, in accordance with its terms,
except that (a) the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally and (b) the remedy of specific performance and injunctive and other
forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought; 
  

 21 

 (ii) the Bank has no reason to believe that anyone authorized to act on its behalf has
offered any interest in and to the Trust for sale to, or solicited any offer to acquire any of the same from, anyone; 
  
 (iii) the execution, delivery and performance by the Bank, either in its individual capacity or as Owner Trustee, as the case may be, of
the Operative Agreements will not result in any violation of, or be in any conflict with, or constitute a default under any of the provisions of any indenture, mortgage, chattel mortgage, deed of trust, conditional sales contract, lease, note or
bond purchase agreement, license, judgment, order or other agreement to which the Bank is a party or by which it or any of its properties is bound; 
  
 (iv) the execution and delivery by the Bank of this Agreement, and the performance of its duties as Owner Trustee hereunder, do not
require the consent or approval of, the giving of notice to, or the registration with, or the taking of any other action with respect to, any governmental authority or agency of the State of Delaware (except as may be required by the Delaware Trust
Statute); and 
  
 (v) there are no pending or, to
the best of its knowledge, threatened actions or proceedings against the Bank before any court, administrative agency or tribunal which, if determined adversely to it, would materially and adversely affect its ability, either in its individual
capacity or as Owner Trustee, as the case may be, to perform its obligations under this Agreement or the Operative Agreements. 
  
 (b) U.S. Bank National Association, as Administrator, hereby represents and warrants to the Depositor, for the benefit of the Holder, that: 
  
 (i) it is a national banking association duly organized and
validly existing in good standing under the laws of the United States, and has the power and authority to execute, deliver and perform its obligations under this Agreement and, assuming the due authorization, execution and delivery hereof by the
other parties hereto, this Agreement constitutes a legal, valid and binding obligation of the Administrator, enforceable against the Administrator in accordance with its terms, except that (a) the enforceability thereof may be limited by bankruptcy,
insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally and (b) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the
discretion of the court before which any proceeding therefor may be brought; 
  
 (ii) it has taken all action necessary to authorize the execution and delivery by it of this Agreement, and this Agreement will be executed and delivered by one of its officers who is duly authorized to execute and
deliver this Agreement on its behalf; and 
  
 (iii) neither the execution nor the delivery by it of this Agreement nor the consummation by it of the transactions contemplated hereby nor compliance by it with any of the terms or provisions hereof will contravene any federal,
governmental rule or 

  

			
	 128979 HMB 2005-1
 Trust Agreement
	 	 
	 	 	 22

 
regulation governing the banking or trust powers of the Administrator or any judgment or order binding on it, or constitute any default under its charter
documents or by-laws or any indenture, mortgage, contract, agreement or instrument to which it is a party or by which any of its properties may be bound. 
  
 Section 6.05. Reliance; Advice of Counsel. 
  
 (a) Except as provided in Section 6.01, the Owner Trustee shall incur no liability to anyone in acting upon any signature, instrument, notice, resolution,
request, consent, order, certificate, report, opinion, bond or other document or paper believed by it to be genuine and believed by it to be signed by the proper party or parties. The Owner Trustee may accept a certified copy of a resolution of the
board of directors or other governing body of any corporate or partnership entity as conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect. As to any fact or matter the manner of
ascertainment of which is not specifically prescribed herein, the Owner Trustee may for all purposes hereof rely on a certificate, signed by the president or any vice president (or the general partner, in the case of a partnership) and by the
treasurer or any assistant treasurer or the secretary or any assistant secretary of the relevant party, as to such fact or matter, and such certificate shall constitute full protection to the Owner Trustee for any action taken or omitted to be taken
by it in good faith in reliance thereon. 
  
 (b) In its exercise
or administration of the trusts and powers hereunder, including its obligations under Section 5.02(b), and in the performance of its duties and obligations under this Agreement or the other Operative Agreements, the Owner Trustee may employ agents
and attorneys and enter into agreements (including the Administration Agreement) with any of them, and the Owner Trustee shall not be answerable for the default or misconduct of any such agents or attorneys if such agents or attorneys shall have
been selected by the Owner Trustee with reasonable care. If, and to the extent, the Depositor shall have failed to reimburse the Owner Trustee for all reasonable expenses and indemnities incurred pursuant to this Section 6.05(b), as provided in
Sections 7.01 and 7.02, the Owner Trustee may seek reimbursement therefor from the Trust Estate. 
  
 (c) In the administration of the trusts and performance of its duties hereunder, the Owner Trustee may consult with counsel, accountants and other skilled
Persons to be selected and employed by it, and the Owner Trustee shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the reasonable advice or opinion of any such counsel, accountants or other skilled
Persons. If, and to the extent, the Depositor shall have failed to reimburse the Owner Trustee for all reasonable expenses and indemnities incurred pursuant to this Section 6.05(c), as provided in Sections 7.01 and 7.02, the Owner Trustee may seek
reimbursement therefor from the Trust Estate. 
  
 Section 6.06.
Not Acting in Individual Capacity. Except as provided in this Article VI, in accepting the trusts hereby created the Owner Trustee acts solely as trustee hereunder and not in its individual capacity, and all persons having any claim against
the Owner Trustee by reason of the transactions contemplated by the Operative Agreements shall look only to the Trust Estate for payment or satisfaction thereof. 
  

 23 

 Section 6.07. Owner Trustee Not Liable for Ownership Certificate or Collateral. The recitals
contained herein and in the Ownership Certificate (other than the signature and countersignature of the Owner Trustee on the Ownership Certificate) shall be taken as the statements of the Depositor, and the Owner Trustee assumes no responsibility
for the correctness thereof. The Owner Trustee makes no representations as to the validity or sufficiency of this Agreement, of any Operative Agreement or of the Ownership Certificate (other than the signature and countersignature of the Owner
Trustee on the Ownership Certificate) or the Notes, or of any Collateral or related documents. The Owner Trustee shall at no time have any responsibility or liability for or with respect to the legality, validity and enforceability of any
Collateral, or the perfection and priority of any security interest created by any Collateral or the maintenance of any such perfection and priority, or for or with respect to the sufficiency of the Trust Estate or its ability to generate the
payments to be distributed to Certificateholders under this Agreement or the Noteholders under the Indenture, including, without limitation: the existence, condition and ownership of any Collateral; the existence and enforceability of any insurance
thereon; the existence and contents of any Collateral on any computer or other record thereof; the validity of the assignment of any Collateral to the Trust or of any intervening assignment; the completeness of any Collateral; the performance or
enforcement of any Collateral; the compliance by the Depositor with any warranty or representation made under any Operative Agreements or in any related document or the accuracy of any such warranty or representation or any action of the
Administrator or the Indenture Trustee taken in the name of the Owner Trustee. 
  
 Section 6.08. Owner Trustee May Own Ownership Certificate and Notes. The Owner Trustee in its individual capacity may become the Holder or the owner or pledgee of Notes and may deal with the Depositor, the
Administrator and the Indenture Trustee in banking transactions with the same rights as it would have if it were not Owner Trustee. 
  
 Section 6.09. Licenses. The Depositor shall cause the Trust to use its best efforts to obtain and maintain the effectiveness of any licenses
required in connection with this Agreement and the other Operative Agreements and the transactions contemplated hereby and thereby until such time as the Trust shall terminate in accordance with the terms hereof. It shall be the duty of the Owner
Trustee to cooperate with the Depositor with respect to such matters. 
  
 Section 6.10. Doing Business in Other Jurisdictions. Notwithstanding anything contained herein to the contrary, neither the Bank nor the Owner Trustee shall be required to take any action in any jurisdiction other than in the State
of Delaware if the taking of such action will (i) require the consent or approval or authorization or order of or the giving of notice to, or the registration with or the taking of any other action in respect of, any state or other governmental
authority or agency of any jurisdiction other than the State of Delaware; (ii) result in any fee, tax or other governmental charge under the laws of any jurisdiction or any political subdivisions thereof in existence on the date hereof other than
the State of Delaware becoming payable by the Bank or the Owner Trustee; or (iii) subject the Bank or the Owner Trustee to personal jurisdiction in any jurisdiction other than the State of Delaware for causes of action arising from acts unrelated to
the consummation of the transactions by the Bank or the Owner Trustee, as the case may be, contemplated hereby. The Owner Trustee shall be entitled to obtain advice of counsel (which advice shall be an expense of the Trust) to determine whether any
action required to be taken pursuant to this Agreement results in the consequences described in clauses (i), (ii) 
  

 24 

 
and (iii) of the preceding sentence. In the event that such counsel advises the Owner Trustee that such action will result in such consequences, the Owner
Trustee will appoint a co-trustee pursuant to Section 9.05 hereof to proceed with such action. 
  
 ARTICLE VII 
 INDEMNIFICATION AND COMPENSATION 
  
 Section 7.01. Trust Expenses. The Master Servicer shall pay or cause the payment of the organizational expenses of
the Trust as they may arise or shall, upon the request of the Owner Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the Owner Trustee in connection therewith in accordance with the terms of a separate fee agreement
between the Master Servicer and the Owner Trustee. The Owner Trustee shall be reimbursed from amounts on deposit in the Collection Account in accordance with Section 5.07(viii) of the Transfer and Servicing Agreement for the reasonable expenses of
the Owner Trustee hereunder, including, without limitation, the reasonable compensation, expenses and disbursements of such agents, representatives, experts and counsel as the Owner Trustee may employ in connection with the exercise and performance
of its rights and duties under the Operative Agreements. 
  
 Section 7.02. Indemnification. 
  
 (a) The Bank
shall be entitled to be indemnified and held harmless from and against any and all liabilities, obligations, indemnity obligations, losses (excluding loss of anticipated profits), damages, claims, actions, suits, judgments, out-of-pocket costs,
expenses and disbursements (including legal and consultants’ fees and expenses) and taxes of any kind and nature whatsoever (collectively, the “Liabilities”) that may be imposed on, incurred by or asserted at any time against the Bank
or the Owner Trustee in any way relating to or arising out of the Trust Estate, any of the properties included therein, the administration of the Trust Estate or any action or inaction of the Owner Trustee hereunder or under the Operative
Agreements, except to the extent that such Liabilities arise out of or result from (i) the Owner Trustee’s own willful misconduct, fraud or gross negligence, (ii) the inaccuracy of any of the Owner Trustee’s representations or warranties
contained in Section 6.04 of this Agreement, (iii) the Owner Trustee’s failure to perform obligations expressly undertaken by it in this Agreement; (iv) taxes based on or measured by any fees, commissions or compensation received by the Owner
Trustee for acting as such in connection with any of the transactions contemplated by this Agreement or any other Operative Agreement and (v) the Owner Trustee’s failure to use due care to receive, manage and disburse moneys actually received
by it in accordance with the terms hereof. The indemnities contained in this Section 7.02(a) shall survive the termination of this Agreement and the removal or resignation of the Owner Trustee hereunder. 
  
 (b) Any fees, reimbursements and indemnities to the Bank or the Owner Trustee
pursuant to this Section 7.02 shall be payable: first, out of amounts on deposit in the Certificate Distribution Account prior to payments on the Ownership Certificate; second, to the extent not paid pursuant to clause first within 60
days of first being incurred, by the Certificateholder; and third, to the extent not paid pursuant to clause first and second within 60 days of first being incurred, by HomeBanc Corp. If any amounts shall be on deposit in the Certificate
Distribution Account subsequent to the payment of any reimbursement or indemnification amounts pursuant to clauses second or third of the preceding sentence, then reimbursement for such payment shall 

  

 25 

 
be payable out of amounts on deposit in the Certificate Distribution Account prior to payments on the Ownership Certificate on any Payment Date first to
HomeBanc Corp. and second to the Certificateholder who made payment pursuant to clause second of the preceding sentence, in each case to the extent of the payment made by it to the Owner Trustee pursuant to the preceding sentence. 
  
 The indemnities contained in this Section 7.02 shall survive the resignation
or termination of the Owner Trustee or the termination of this Agreement. In the event of any claim, action or proceeding for which indemnity will be sought pursuant to this Section, the Owner Trustee’s choice of legal counsel shall be subject
to the approval of HomeBanc Corp., which approval shall not be unreasonably withheld. 
  
 Section 7.03. Compensation. The Bank shall receive as compensation for its services hereunder from the Master Servicer pursuant to the terms of a separate fee agreement between the Master Servicer and the Owner
Trustee. 
  
 Section 7.04. Lien on Trust Estate. The Bank
shall have a lien on the Trust Estate for any compensation or indemnity due hereunder, such lien to be subject only to prior liens of the Indenture. The Bank shall not bring any proceedings to foreclose on such lien if and to the extent the Trust
Estate is subject to the lien of the Indenture. Any amount paid to the Owner Trustee pursuant to this Article VII shall be deemed not to be part of the Trust Estate immediately after such payment. 
  
 ARTICLE VIII 
 TERMINATION OF AGREEMENT 
  
 Section 8.01. Termination of Agreement. 
  
 (a) This Agreement (other than Article VII) shall terminate and the trusts created hereby shall dissolve and terminate and the Trust Estate shall, subject to the Indenture and Sections 4.01 and 7.04 and Section 3808
of the Delaware Trust Statute, be distributed to the Holder, and this Agreement shall be of no further force or effect, upon the earlier of (i) the full payment of principal and interest due on all Classes of the Notes; and (ii) the sale or other
final disposition by the Indenture Trustee or the Owner Trustee, as the case may be, of all the Trust Estate and the final distribution by the Administrator or the Owner Trustee, as the case may be, of all moneys or other property or proceeds of the
Trust Estate in accordance with the terms of the Indenture, the Transfer and Servicing Agreement and Section 4.02. The bankruptcy, liquidation or dissolution of the Holder shall not operate to terminate this Agreement, nor entitle such Holder’s
legal representatives to claim an accounting or to take any action or proceeding in any court for a partition or winding up of the Trust Estate, nor otherwise affect the rights, obligations and liabilities of the parties hereto. 
  
 (b) Except as provided in Section 8.01(a), neither the Depositor nor the
Holder shall be entitled to revoke or terminate the Trust established hereunder. 
  
 (c) Notice of any termination of the Trust, specifying the Payment Date upon which the Holder shall surrender its Ownership Certificate to the Certificate Paying Agent for payment of the final distribution and
cancellation, shall be given by the Certificate Paying Agent by letter to 

  

 26 

 
the Holder and the Rating Agencies mailed within five Business Days of receipt of notice of the final payment on the Notes pursuant to the Transfer and
Servicing Agreement, stating (i) the Payment Date upon or with respect to which final payment of the Ownership Certificate shall be made upon presentation and surrender of the Ownership Certificate at the office of the Certificate Paying Agent
therein designated, (ii) the amount of any such final payment and (iii) that the Record Date otherwise applicable to such Payment Date is not applicable, payments being made only upon presentation and surrender of the Ownership Certificate at the
office of the Certificate Paying Agent therein specified. The Certificate Paying Agent shall give such notice to the Owner Trustee and the Certificate Registrar at the time such notice is given to the Holder. Upon presentation and surrender of the
Ownership Certificate, the Certificate Paying Agent shall cause to be distributed to the Holder amounts distributable on such Payment Date pursuant to Section 4.1 of the Transfer and Servicing Agreement. 
  
 (d) Upon the winding up of the Trust and its termination, the Owner Trustee
shall upon the written request of the Depositor cause the Certificate of Trust to be cancelled by filing a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 3810 of the Delaware Trust Statute.

  
 ARTICLE IX 
 SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES 
  
 Section 9.01. Eligibility Requirements for Owner Trustee. The Owner Trustee shall at all times be a corporation satisfying the provisions of
Section 3807(a) of the Delaware Trust Statute; authorized to exercise corporate powers; having a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by Federal or state authorities; and having (or having a
parent which has) a short-term debt rating of at least “A-1” or the equivalent by, or which is otherwise acceptable to, the Rating Agencies. If such corporation shall publish reports of condition at least annually, pursuant to law or to
the requirements of the aforesaid supervising or examining authority, then for the purpose of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of this Section, the Owner Trustee shall resign immediately in the manner and with the effect specified in Section
9.02. 
  
 Section 9.02. Resignation or Removal of Owner
Trustee. The Owner Trustee may at any time resign and be discharged from the trusts hereby created by giving 30 days’ prior written notice thereof to the Depositor, the Holder and the Indenture Trustee. Upon receiving such notice of
resignation, the Depositor shall promptly appoint a successor Owner Trustee by written instrument, in duplicate, one copy of which instrument shall be delivered to the resigning Owner Trustee and one copy to the successor Owner Trustee. If no
successor Owner Trustee shall have been so appointed and have accepted appointment within 30 days after the giving of such notice of resignation, the resigning Owner Trustee may petition any court of competent jurisdiction for the appointment of a
successor Owner Trustee. 
  
 If at any time the Owner Trustee
shall cease to be eligible in accordance with the provisions of Section 9.01 and shall fail to resign after written request therefor by the Depositor, or if at any time the Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt

  

 27 

 
or insolvent, or a receiver of the Owner Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Depositor may remove the Owner Trustee. If the Depositor shall remove the Owner Trustee under the authority of the immediately preceding
sentence, the Depositor shall promptly appoint a successor Owner Trustee by written instrument in duplicate, one copy of which instrument shall be delivered to the outgoing Owner Trustee so removed and one copy to the successor Owner Trustee and
payment of all fees owed to the outgoing Owner Trustee. 
  
 Any
resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee pursuant to any of the provisions of this Section shall not become effective until acceptance of appointment by the successor Owner Trustee pursuant to Section
9.03 and payment of all fees and expenses owed to the outgoing Owner Trustee. The Administrator shall provide notice of such resignation or removal of the Owner Trustee to the Rating Agencies. 
  
 Section 9.03. Successor Owner Trustee. Any successor Owner Trustee
appointed pursuant to Section 9.02 shall execute, acknowledge and deliver to the Administrator and to its predecessor Owner Trustee an instrument accepting such appointment under this Agreement, and thereupon the resignation or removal of the
predecessor Owner Trustee shall become effective and such successor Owner Trustee without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties, and obligations of its predecessor under this Agreement,
with like effect as if originally named as Owner Trustee. The predecessor Owner Trustee shall upon payment of its fees and expenses deliver to the successor Owner Trustee all documents and statements and monies held by it under this Agreement; and
the Administrator and the predecessor Owner Trustee shall execute and deliver such instruments and do such other things as may reasonably be required for fully and certainly vesting and confirming in the successor Owner Trustee all such rights,
powers, duties, and obligations. 
  
 No successor Owner Trustee
shall accept appointment as provided in this Section unless at the time of such acceptance such successor Owner Trustee shall be eligible pursuant to Section 9.01. 
  
 Upon acceptance of appointment by a successor Owner Trustee pursuant to this Section, the Administrator shall mail notice of
the successor of such Owner Trustee to all Certificateholders, the Indenture Trustee, the Noteholders and the Rating Agencies. If the Administrator fails to mail such notice within 10 days after acceptance of appointment by the successor Owner
Trustee, the successor Owner Trustee shall cause such notice to be mailed at the expense of the Administrator. 
  
 Section 9.04. Merger or Consolidation of Owner Trustee. Any Person into which the Owner Trustee may be merged or converted or with which it may be
consolidated or any Person resulting from any merger, conversion or consolidation to which the Owner Trustee shall be a party, or any Person succeeding to all or substantially all of the corporate trust business of the Owner Trustee, shall be the
successor of the Owner Trustee hereunder, provided such Person shall be eligible pursuant to Section 9.01, without the execution or filing of any instrument or any further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding. 
  

 28 

 Section 9.05. Appointment of Co-Trustee or Separate Trustee. Notwithstanding any other provisions
of this Agreement, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the Trust Estate or any Collateral may at the time be located, and for the purpose of performing certain duties and
obligations of the Owner Trustee with respect to the Trust and the Certificates under the Transfer and Servicing Agreement, the Owner Trustee shall have the power and shall execute and deliver all instruments to appoint one or more Persons approved
by the Owner Trustee to act as co-trustee, jointly with the Owner Trustee, or separate trustee or separate trustees, of all or any part of the Trust Estate, and to vest in such Person, in such capacity, such title to the Trust, or any part thereof,
and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Owner Trustee may consider necessary or desirable. No co-trustee or separate trustee under this Agreement shall be required to meet the
terms of eligibility as a successor trustee pursuant to Section 9.01 and no notice of the appointment of any co-trustee or separate trustee shall be required pursuant to Section 9.03. 
  
 The Owner Trustee hereby appoints the Administrator for the purpose of establishing and maintaining the Certificate
Distribution Account and making the distributions therefrom to the Persons entitled thereto pursuant to Section 6.02 of the Transfer and Servicing Agreement. 
  
 Each separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the following provision and conditions:

  
 (a) all rights, powers, duties and obligations conferred or
imposed upon the Owner Trustee shall be conferred upon and exercised or performed by the Owner 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 Owner 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 Owner 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 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 Owner Trustee; 
  
 (b) no trustee under this
Agreement shall be personally liable by reason of any act or omission of any other trustee under this Agreement; and 
  
 (c) the Administrator and the Owner Trustee acting jointly may at any time accept the resignation of or remove any separate trustee or co-trustee.

  
 Any notice, request or other writing given to the Owner
Trustee shall be deemed to have been given to the separate trustees and co-trustees, as if given to each of them. Every instrument appointing any separate trustee or co-trustee, other than this Agreement, shall refer to this Agreement and to the
conditions of this Article. Each separate trustee and co-trustee, upon its acceptance of appointment, shall be vested with the estates specified in its instrument of appointment, either jointly with the Owner Trustee or separately, as may be
provided therein, subject to all the provisions of this Agreement, specifically including every provision of this Agreement relating to the conduct of, affecting the liability of, or affording protection to, the Owner Trustee. Each such instrument
shall be filed with the Owner Trustee and a copy thereof given to the Administrator. 
  

 29 

 Any separate trustee or co-trustee may at any time appoint the Owner Trustee as its Agent or
attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Agreement on its behalf and in its name. If any separate trustee or co-trustee shall die, become incapable of
acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Owner Trustee, to the extent permitted by law, without the appointment of a new or successor trustee. 
  
 ARTICLE X 
 MISCELLANEOUS 
  
 Section 10.01. Supplements and Amendments. This Agreement may be amended by the Depositor, the Administrator and the Owner Trustee, with the consent of the Holder and with prior written notice to the Rating Agencies, but without the
consent of any of the Noteholders or the Indenture Trustee, to (a) cure any ambiguity, to correct or supplement any provisions in this Agreement or for the purpose of adding any provisions to or changing in any manner or eliminating any of the
provisions in this Agreement or of modifying in any manner the rights of the Noteholders or the Holder or (b) to comply with any SEC Rules (as defined in Section 10.13 hereof); provided, however, that such action shall not, as evidenced by an
Opinion of Counsel, adversely affect in any material respect the interests of any Noteholder or the Holder or adversely affect the tax status of the Trust. An amendment shall not be deemed to adversely affect in any material respect the interests of
any Noteholder or the Holder and no opinion referred to in the preceding proviso shall be required to be delivered if the Person requesting the amendment obtains a letter from each Rating Agencies stating that the amendment would not result in the
downgrading or withdrawal of the respective ratings then assigned to each Class of Notes. Notwithstanding the preceding sentence, an opinion shall be required with respect to tax matters as set forth in this paragraph. Notwithstanding the foregoing,
neither an Opinion of Counsel nor any letters from any Rating Agency referred to above shall be required if such amendment is made pursuant to (b) above. 
  
 This Agreement may also be amended from time to time by the Depositor, the Administrator and the Owner Trustee, with the prior written consent of the
Rating Agencies and with the prior written consent of the Indenture Trustee, the Holders (as defined in the Indenture) of Notes evidencing more than 66 2/3% of the Outstanding Balance of the Notes, and the consent of the Holder, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or
of modifying in any manner the rights of the Holder; provided, however, that no such amendment shall, as evidenced by an Opinion of Counsel, adversely affect the tax status of the Trust; and provided, further, that no such
amendment shall (a) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on the Collateral or payments that shall be required to be made for the benefit of the Noteholders or the Holder or (b)
reduce the aforesaid percentage of the Outstanding Balance of the Notes required to consent to or to waive the requirement for the Holder to consent to any such amendment, in either case of clause (a) or (b) without the consent of the holders of all
the outstanding Notes and the Holder. 
  

 30 

 Notwithstanding the foregoing, no provision of Sections 2.03 or 5.06 hereof may be amended in any manner
unless (i) 100% of the Outstanding Balance of the Noteholders have consented in writing thereto, (ii) the Rating Agencies have consent in writing thereto or (iii) the Notes have been paid in full and the Indenture has been discharged. 
  
 Promptly after the execution of any such amendment or consent, the Owner
Trustee shall furnish written notification of the substance of such amendment or consent to the Holder, the Indenture Trustee and the Rating Agencies. 
  
 It shall not be necessary for the consent of the Holder, the Noteholders or the Indenture Trustee pursuant to this Section 10.01 to approve the particular
form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining such consents (and any other consents of the Holder provided for in this Agreement or in any other
Operative Agreement) and of evidencing the authorization of the execution thereof by the Holder shall be subject to such reasonable requirements as the Owner Trustee may prescribe. 
  
 Promptly after the execution of any amendment to the Certificate of Trust, the Owner Trustee shall cause the filing of such
amendment with the Secretary of State. 
  
 Prior to the execution
of any amendment to this Agreement or the Certificate of Trust, the Owner Trustee and the Administrator shall be entitled to receive and rely upon an Opinion of Counsel, at the expense of the Trust, stating that the execution of such amendment is
authorized or permitted by this Agreement. Neither the Owner Trustee nor the Administrator shall be obligated to enter into any such amendment which affects the Owner Trustee’s or Administrator’s own rights, duties or immunities under this
Agreement or otherwise. 
  
 Section 10.02. No Legal Title to
Trust Estate in Holder. The Holder shall not have legal title to any part of the Trust Estate and shall only be entitled to receive distributions with respect to its undivided beneficial interest therein pursuant to Section 4.02 once all amounts
then owing with respect to the Notes have been paid in accordance with the Indenture. No transfer, by operation of law of any right, title and interest of the Holder in and to its undivided beneficial interest in the Trust Estate or hereunder shall
operate to terminate this Agreement or the trusts hereunder or entitle any successor transferee to an accounting or to the transfer to it of legal title to any part of the Trust Estate. 
  
 Section 10.03. Pledge of Collateral by Owner Trustee is Binding. The pledge of the Collateral to the Indenture
Trustee by the Trust made under the Indenture and pursuant to the terms of this Agreement shall bind the Holder and shall be effective to transfer or convey the rights of the Trust and the Holder in and to such Collateral to the extent set forth in
the Indenture. No purchaser or other grantee shall be required to inquire as to the authorization, necessity, expediency or regularity of such pledge or as to the application of any proceeds with respect thereto by the Owner Trustee. 
  
 Section 10.04. Limitations on Rights of Others. Nothing in this
Agreement, whether express or implied (except for Section 7.04), shall be construed to give to any Person other than the Owner Trustee and the Holder any legal or equitable right in the Trust Estate or under or in respect of this Agreement or any
covenants, conditions or provisions contained herein. 
  

 31 

 Section 10.05. Notices. Unless otherwise expressly specified or permitted by the terms hereof, all
notices shall be in writing and delivered by hand, by courier or mailed by certified mail, postage prepaid, (a) if to the Owner Trustee or the Trust, addressed to it at the Corporate Trust Office of the Owner Trustee or to such other address as the
Owner Trustee may have set forth in a written notice to the Holder and the Depositor addressed to it at the address set forth for such Certificateholders in the Certificate Register; (b) if to the Administrator, addressed to it at the Corporate
Trust Office of the Administrator; and (c) if to the Depositor, addressed to it at HMB Acceptance Corp., 2002 Summit Boulevard, Suite 100, Atlanta, Georgia 30319, Attention: HomeBanc 2005-1. Whenever any notice in writing is required to be given by
the Owner Trustee or the Administrator, such notice shall be deemed given and such requirement satisfied if such notice is mailed by certified mail, postage prepaid, addressed as provided above. 
  
 Section 10.06. Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  
 Section 10.07. Separate Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed
and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 
  
 Section 10.08. Successors and Assigns. All representations, warranties, covenants and agreements contained herein shall be binding upon, and inure
to the benefit of, the Owner Trustee and its successors and assigns and the Depositor and the Holder and its respective successors, all as herein provided. Any request, notice, direction, consent, waiver or other instrument or action by the Holder
shall bind the successors of such Holder. 
  
 Section 10.09.
Headings. The headings of the various Articles and Sections herein are for convenience of reference only and shall not define or limit any of the terms or provisions hereof. 
  
 Section 10.10. Governing Law. THIS AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO THE CONFLICT OF LAWS PROVISIONS THEREOF, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS. 
  
 Section 10.11. No Petition.

  
 (a) The Owner Trustee and the Administrator, by entering into
this Agreement, the Holder, by accepting the Ownership Certificate, and the Indenture Trustee and each Noteholder, by accepting the benefits of this Agreement, hereby covenant and agree that they will not at any 

  

 32 

 
time institute against the Depositor or the Trust, or join in any institution against the Depositor or the Trust of, any bankruptcy under any United States
federal or state bankruptcy or similar law in connection with any obligations relating to the Ownership Certificate, the Notes, this Agreement or any of the other Operative Agreements. 
  
 (b) The Depositor shall not be liable for the default or misconduct of the Administrator, the Owner Trustee, the Indenture
Trustee or the Certificate Paying Agent under any of the Operative Agreements or otherwise and the Depositor shall have no obligation or liability to perform the obligations of the Trust under this Agreement or the Operative Agreements that are
required to be performed by the Administrator under the Administration Agreement or the Indenture Trustee under the Indenture. 
  
 Section 10.12. No Recourse. The Holder by accepting an Ownership Certificate acknowledges that such Certificate represents a beneficial interest in
the Trust only and does not represent an interest in or an obligation of the Depositor, the Administrator, the Owner Trustee, any co-trustee, the Bank or any Affiliate thereof (other than the Trust) and no recourse may be had against such parties or
their assets, except as may be expressly set forth or contemplated in this Agreement, the Ownership Certificate or the other Operative Agreements. 
  
 Section 10.13. Reporting Requirements of the Commission and Indemnification. 
  
 Notwithstanding any other provision of this Agreement, the Owner Trustee shall (i) agree to such modifications and enter
into such amendments to this Agreement as may be necessary, in the judgment of the Depositor and its counsel, to comply with any rules promulgated by the Commission and any interpretations thereof by the staff of the Commission (collectively,
“SEC Rules”) and (ii) promptly upon request provide to the Depositor for inclusion in any periodic report required to be filed under the Exchange Act such items of information regarding this Agreement and matters related to the Owner
Trustee, including as applicable (by way of example and not limitation), a description of any material litigation or governmental action or proceeding involving the Owner Trustee or its affiliates, as applicable (collectively, the “Owner
Trustee Information”); provided, that such information shall be required to be provided by the Owner Trustee only to the extent that such shall be determined by the Depositor in its sole discretion and its counsel to be necessary or
advisable to comply with any SEC Rules. 
  
 ARTICLE XI 

OFFICERS 
  
 Section 11.01. Appointment of Officers. The Trust may have one or more Officers who are hereby empowered to take and are responsible for performing
all ministerial duties on behalf of the Trust pursuant to this Agreement and the other Operative Agreements, including, without limitation, the execution of the Officers’ Certificate (as defined in the Indenture), the Trust Order (as defined in
the Indenture), the Trust Request (as defined in the Indenture), the annual compliance report required under Section 3.09 of the Indenture, and any annual reports, documents and other reports which the Trust is required to file with the Securities
and Exchange Commission pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended. Each of the Chairman of the Board, the Chief Executive Officer, the President, each Senior Vice President and each Vice President of the
Depositor is hereby appointed as an Officer of the Trust. The Depositor shall promptly deliver to the Owner Trustee and the Indenture Trustee a list of its officers who shall become the Officers of the Trust pursuant to this Section 11.01.

  

 33 

 Section 11.02. Officers to Provide Information to the Owner Trustee. It shall be the duty of each
Officer to keep the Owner Trustee reasonably and promptly informed as to material events relating to the Trust, including, without limitation, all claims pending or threatened against the Trust, the purchase and sale of any material portion of the
Trust Estate and the execution by such Officer on behalf of the Trust of any material agreements or instruments. 
  

 34 

 IN WITNESS WHEREOF, the parties hereto have caused this Trust Agreement to be duly executed by their
respective officers hereunto duly authorized, as of the day and year first above written. 
  

			
	 HMB ACCEPTANCE CORP., as Depositor

		
	 By:
	 	 /S/ Debra F. Watkins

	 Name:
	 	 Debra F. Watkins

	 Title:
	 	 Executive Vice President

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

		
	 By:
	 	 /S/ Heather L. Williamson

	 Name:
	 	 Heather L. Williamson

	 Title:
	 	 Financial Services Officer

	
	 U.S. BANK NATIONAL ASSOCIATION,
 not in its individual capacity but solely as
 Administrator

		
	 By:
	 	 /S/ Daniel M. Scully, Jr.

	 Name:
	 	 Daniel M. Scully, Jr.

	 Title:
	 	 Assistant Vice President

 Acknowledged and Agreed, solely 
 for purposes of Section 7.02: 
  

			
	 HOMEBANC CORP.

		
	 By:
	 	  

	 Name:
	 	 Debra F. Watkins

	 Title:
	 	 Executive Vice President

 EXHIBIT A 
  
 [FORM OF OWNERSHIP CERTIFICATE] 
  
 [Face] 
  
 THIS OWNERSHIP CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE. THIS OWNERSHIP CERTIFICATE MAY BE DIRECTLY OR
INDIRECTLY OFFERED OR SOLD OR OTHERWISE DISPOSED OF (INCLUDING PLEDGED) BY THE HOLDER HEREOF ONLY TO A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE ACT, IN A TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE
STATE SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT PURSUANT TO RULE 144A. NO PERSON IS OBLIGATED TO REGISTER THIS OWNERSHIP CERTIFICATE UNDER THE ACT OR ANY STATE SECURITIES LAWS. 
  
 THIS OWNERSHIP CERTIFICATE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF, AN
EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
“CODE”) OR ANY SUBSTANTIALLY SIMILAR LAW, OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE FOREGOING. EACH INVESTOR IN THIS CERTIFICATE WILL BE DEEMED TO MAKE THE FOREGOING REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT,
WARRANT AND COVENANT THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS CERTIFICATE IN VIOLATION OF THE FOREGOING. 
  
 THIS OWNERSHIP CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF THE DEPOSITOR, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE ADMINISTRATOR OR ANY OF THEIR
RESPECTIVE AFFILIATES, EXCEPT AS EXPRESSLY PROVIDED IN THE TRUST AGREEMENT OR THE OTHER OPERATIVE AGREEMENTS. 
  
 THIS OWNERSHIP CERTIFICATE IS SUBORDINATE IN RIGHT OF PAYMENT AS DESCRIBED IN THE TRANSFER AND SERVICING AGREEMENT REFERRED TO HEREIN. 
  

 A-1 

 HOMEBANC MORTGAGE TRUST 2005-1 
  
 Certificate No.
                        Percentage Interest: 100% 
  
 First Payment Date: [            ], 2005 
  
 Evidencing a fractional undivided equity interest in the Trust Estate, the
property of which consists primarily of the Collateral in HomeBanc Mortgage Trust 2005-1 (the “Trust” or the “Issuer”), a Delaware statutory trust formed by HMB Acceptance Corp., a Delaware corporation, as depositor (the
“Depositor”), pursuant to the Agreement referred to below. 
  
 This certifies that [insert name of Holder] is the registered owner of the Percentage Interest referred to above. 
  
 The Trust was created pursuant to a trust agreement dated as of February 1, 2005 (as amended and supplemented from time to time, the “Agreement”
or “Trust Agreement”), among the Depositor, Wilmington Trust Company, as owner trustee (the “Owner Trustee,” which term includes any successor entity under the Agreement), and U.S. Bank National Association, as administrator (in
such capacity, the “Administrator”), a summary of certain of the pertinent provisions of which is set forth hereinafter. This Ownership Certificate is issued under and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Ownership Certificate by virtue of the acceptance hereof assents and by which such Holder is bound, and the transfer and servicing agreement dated as of February 1, 2005 (as amended and supplemented from time to
time, the “Transfer and Servicing Agreement”), among the Issuer, the Depositor, HomeBanc Corp., as seller and servicer, Wells Fargo Bank, N.A., as master servicer and securities administrator, and U.S. Bank National Association, as
indenture trustee (the “Indenture Trustee”). Distributions on this Ownership Certificate shall be made by the Administrator, in its capacity of Certificate Paying Agent under the Agreement. 
  
 This Ownership Certificate is issued under the Agreement to which reference
is hereby made for a statement of the respective rights thereunder of the Depositor, the Owner Trustee and the Holder of the Ownership Certificate and the terms upon which the Ownership Certificate is executed and delivered. The Trust Estate
consists of the Collateral in the HomeBanc Mortgage Trust 2005-1. To the extent not otherwise defined herein, capitalized terms used herein have the meanings assigned to such terms in the Agreement or the Transfer and Servicing Agreement. The rights
of the Holder are subordinated to the rights of the Noteholders, as set forth in the indenture dated as of February 1, 2005 (as amended and supplemented from time to time, the “Indenture”), between the Issuer and the Indenture Trustee.

  
 There will be distributed on the 25th day of each month or, if such 25th day is not a Business Day, the next Business Day (each, a “Payment Date”), commencing in March 2005, to the Holder at the close of business on the last Business Day of the month preceding
the month of such Payment Date (the “Record Date”), the amount to be distributed to the Holder on such Payment Date, all as provided in the Transfer and Servicing Agreement and the Trust Agreement. 
  

 A-2 

 The Holder, by its acceptance of this Ownership Certificate, agrees that it will look solely to the funds
on deposit in the Certificate Distribution Account that have been released from the lien of the Indenture for payment hereunder and that neither the Owner Trustee, the Administrator or the Certificate Paying Agent in their individual capacities nor
the Depositor is personally liable to the Holder for any amount payable under this Ownership Certificate or the Agreement or, except as expressly provided in the Agreement, subject to any liability under the Agreement. 
  
 The Holder acknowledges and agrees that its rights to receive distributions
in respect of this Ownership Certificate are subordinated to the rights of the Noteholders as described in the Indenture and the rights of the Owner Trustee as described in the Trust Agreement. 
  
 The Depositor and the Holder, by acceptance of an Ownership Certificate,
agree to treat, and to take no action inconsistent with the treatment of, the Ownership Certificate for federal, state and local income tax purposes as an equity interest in the Trust. 
  
 The Holder, by its acceptance of an Ownership Certificate, covenants and agrees that it will not at any time institute
against the Depositor or the Trust, or join in any institution against the Depositor or the Trust 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 Ownership Certificate, the Notes, the Agreement or any other of the Operative Agreements. 
  
 Distributions on this Ownership Certificate will be made as provided in the Agreement by the Certificate Paying Agent by
wire transfer or check mailed to the Holder without the presentation or surrender of this Ownership Certificate or the making of any notation hereon. Except as otherwise provided in the Agreement and notwithstanding the above, the final distribution
on this Ownership Certificate will be made after due notice by the Certificate Paying Agent of the pendency of such distribution and only upon presentation and surrender of this Ownership Certificate at the office or agency maintained by the
Certificate Registrar for that purpose. 
  
 Reference is hereby
made to the further provisions of this Ownership Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
  
 Unless the certificate of authentication hereon shall have been executed by
an authorized officer of the Owner Trustee, or an authenticating agent by manual signature, this Ownership Certificate shall not entitle the Holder hereof to any benefit under the Agreement or be valid for any purpose. 
  
 THIS OWNERSHIP CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAWS PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  

 A-3 

 IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not in its individual capacity, has
caused this Ownership Certificate to be duly executed. 
  

			
	 HOMEBANC MORTGAGE TRUST 2005-1

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

		
	 By:
	 	  

	 	 	 Authorized Signatory

  
 Dated:
                     
  

 A-4 

 CERTIFICATE OF AUTHENTICATION 
  
 This is the Ownership Certificate referred to in the within-mentioned Trust Agreement. 
  

			
	 U.S. BANK NATIONAL ASSOCIATION, not in
 its individual capacity but solely as Administrator

		
	 By:
	 	  

	 	 	 Authorized Signatory

		
	 Dated
	 	  __________________

  

 A-5 

 [REVERSE OF OWNERSHIP CERTIFICATE] 
  
 HOMEBANC MORTGAGE TRUST 2005-1 OWNERSHIP CERTIFICATE 
  
 The Ownership Certificate does not represent an obligation of, or an interest in, the Depositor, the Seller, the Indenture
Trustee, the Owner Trustee, the Securities Administrator, the Administrator or any Affiliates of any of them and no recourse may be had against any such parties or their assets, except as expressly set forth or contemplated herein or in the
Agreement or the other Operative Agreements. In addition, this Ownership Certificate is not guaranteed by any governmental agency or instrumentality and is limited in right of payment to certain collections and recoveries with respect to the
Collateral, all as more specifically set forth herein. A copy of the Agreement may be examined by any Certificateholder upon written request during normal business hours at the principal office of the Depositor and at such other places, if any,
designated by the Depositor. 
  
 The Agreement permits the
amendment thereof as specified below, provided that any amendment be accompanied by an Opinion of Counsel to the effect that such amendment complies with the provisions of the Agreement and would not cause the Trust to be subject to an entity level
tax. If the purpose of the amendment is to correct any mistake, eliminate any inconsistency, cure any ambiguity or deal with any matter not covered, it shall not be necessary to obtain the consent of any Noteholder or the Indenture Trustee. If the
purpose of the amendment is to add or eliminate or change any provision of the Agreement, other than as specified in the preceding sentence, the amendment shall require the consent of the Holder and the consent of Noteholders evidencing more than
66 2/3% of the Outstanding Balance of the Notes and the Indenture Trustee; provided, however, that no such
amendment shall, as evidenced by an Opinion of Counsel, adversely affect the tax status of the Trust; and provided, further, that no such amendment shall (a) increase or reduce in any manner the amount of, or accelerate or delay the timing
of, collections of payments on the Collateral or distributions that shall be required to be made for the benefit of the Noteholders or the Holder or (b) reduce the aforesaid percentage of the Outstanding Balance of the Notes required to consent to
or to waive the requirement for the Holder to consent to any such amendment, in either case of clause (a) or (b) without the consent of the holders of all the outstanding Securities and the Indenture Trustee. 
  
 As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Ownership Certificate is registerable in the Certificate Register upon surrender of this Ownership Certificate for registration of transfer at the offices or agencies of the Certificate Registrar, accompanied by a written
instrument of transfer in form satisfactory to the Certificate Registrar duly executed by the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon a new Ownership Certificate will be issued to the designated
transferee. The initial Certificate Registrar appointed under the Agreement is the Administrator. 
  
 Except as provided in the Agreement, the Ownership Certificate is issuable only in a minimum Percentage Interest of 100%. No service charge will be made
for any such registration of transfer or exchange, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge payable in connection therewith or any expense incurred thereby.

  

 A-6 

 The Owner Trustee, the Certificate Paying Agent, the Certificate Registrar, the Administrator and any
agent of the Owner Trustee, the Certificate Paying Agent, the Certificate Registrar and the Administrator may treat the Holder as the owner hereof for all purposes, and none of the Owner Trustee, the Certificate Paying Agent, the Certificate
Registrar, the Administrator or any such agent shall be affected by any notice to the contrary. 
  
 The obligations and responsibilities created by the Agreement and the Trust created thereby shall terminate upon the satisfaction and discharge of the
Indenture pursuant to Section 4.01 thereof and the termination of the Transfer and Servicing Agreement. 
  

 A-7 

 ASSIGNMENT 
  

FOR VALUE RECEIVED, the undersigned hereby sell(s) and assign(s) and transfer(s) unto 
  
 ______________________________________________________________________________________________________________________________ 

 
 ______________________________________________________________________________________________________________________________ 
  
 (Please print or type name and address, including postal zip code, of assignee and social security number or employer identification number) 
  
 ______________________________________________________________________________________________________________________________ 
  
 the within Ownership Certificate, and all rights thereunder, hereby irrevocably constituting and appointing 
  
 ______________________________________________________________________________________________________________________________ 
  
 to transfer said Ownership Certificate on the books of the Certificate Registrar, with full power of substitution in the premises.

  
 I [we] further direct the Certificate Registrar to issue a new
Ownership Certificate to the above-named assignee and deliver such Ownership Certificate to the following address: 
  
 ______________________________________________________________________________________________________________________________ 
  
 ______________________________________________________________________________________________________________________________ 
  

			
	Dated: _____________	 	  

	 	 	 Signature by or on behalf of Assignor

		
	  

	 	 
	Authorized Officer	 	 
	 	 	  

	 	 	 Signature Guaranteed

		
	  

	 	  

	Name of Institution	 	NOTICE: The signature(s) of this assignment must correspond with the name(s) on the face of this Certificate without alteration or any change whatsoever. The signature must be guaranteed by a
participant in the Securities Transfer Agents Medallion Program, the New York Stock Exchange Medallion Signature Program or the Stock Exchanges Medallion Program. Notarized or witnessed signatures are not acceptable as guaranteed
signatures.

  

 A-8 

 DISTRIBUTION INSTRUCTIONS 
  
 The assignee should include the following for the information of the Certificate Paying Agent. Distributions shall be made
by wire transfer in immediately available funds to 
  
 ___________________________________________________________________________________________________________ 
  
 for the account of ____________________________________________________________________________________________ 
  
 account number _______________________________ or, if mailed by check, to
__________________________________________ 
  
 ___________________________________________________________________________________________________________. 
  
 Applicable reports and statements should be mailed to _______________________________________________________________ 
  
 ___________________________________________________________________________________________________________. 
  
 This information is provided by _________________________________________________________, 
  
 the assignee named above, or ______________________________________ as its agent. 
  

	
	  

	 Signature of assignee or agent

	 (for authorization of wire transfer only)

  

 A-9 

 EXHIBIT B 
  
 FORM OF CERTIFICATE OF TRUST OF 
  
 HOMEBANC MORTGAGE TRUST 2005-1 
  
 This Certificate of Trust of HomeBanc Mortgage Trust 2005-1 (the “Trust”), is being duly executed and filed by the undersigned, as trustee, to
form a statutory trust under the Delaware Statutory Trust Act (12 DEL. CODE, Sections 3801 et seq.) (the “Act”) 
  
 1. NAME. The name of the statutory trust formed hereby is “HOMEBANC MORTGAGE TRUST 2005-1.” 
  
 2. DELAWARE TRUSTEE. The name and business address of the trustee of the
Trust in the State of Delaware are Wilmington Trust Company, Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration. 
  
 3. EFFECTIVE DATE. This Certificate of Trust shall be effective on
[            ], 2005. 
  
 IN WITNESS WHEREOF, the undersigned, being the owner trustee of the Trust, has executed this Certificate of Trust in accordance with Section 3811(a) of the Act. 
  

			
	 WILMINGTON TRUST COMPANY,
 as Owner Trustee

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 B-1 

 EXHIBIT C 
  
 FORM OF RULE 144A INVESTMENT LETTER 
  

	
	______________
	Date

  
 U.S. BANK NATIONAL ASSOCIATION,

     as Certificate Registrar 
 One Federal
Street, Third Floor 
 Boston, Massachusetts 02110 
  
 Attention: Corporate Trust Department 
  

			
	 Re:
	  	 HomeBanc Mortgage Trust 2005-1

	 	  	 Ownership Certificate

  
 Ladies and Gentlemen: 
  
 In connection with our acquisition of the HomeBanc Mortgage Trust 2005-1
Ownership Certificate (the “Certificate”), we certify that (a) we understand that the Certificate has not been registered under the Securities Act of 1933, as amended (the “Act”), or any state securities laws and is being
transferred to us in a transaction that is exempt from the registration requirements of the Act and any such laws, (b) we have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of
investment in the Certificate, (c) we have had the opportunity to ask questions of and receive answers from the HMB Acceptance Corp. (the “Depositor”) concerning the purchase of the Certificate and all matters relating thereto or any
additional information deemed necessary to our decision to purchase the Certificate, (d) we have not, nor has anyone acting on our behalf, offered, transferred, pledged, sold or otherwise disposed of the Certificate or any interest in the
Certificate, or solicited any offer to buy, transfer, pledge or otherwise dispose of the Certificate or any interest in the Certificate from any person in any manner, or made any general solicitation by means of general advertising or in any other
manner, or taken any other action that would constitute a distribution of the Certificate under the Act or that would render the disposition of the Certificate a violation of Section 5 of the Act or any state securities laws or require registration
pursuant thereto, and we will not act, or authorize any person to act, in such manner with respect to the Certificate and (e) we are a “qualified institutional buyer” as that term is defined in Rule 144A under the Act (“Rule
144A”). We are aware that the sale to us is being made in reliance on Rule 144A. 
  
 We are acquiring the Certificate for our own account or for resale pursuant to Rule 144A and understand that such Certificate may be resold, pledged or transferred only (1) to a person reasonably believed to be a
qualified institutional buyer that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A or (2) pursuant to another
exemption from registration under the Act. 
  

 C-1 

 In addition, we hereby certify that we are not an employee benefit plan or other retirement arrangement
subject to Section 406 of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or to Section 4975 of the Internal Revenue Code of 1986, as amended (or to any other substantially similar law) or any entity deemed to
hold the plan assets of the foregoing. 
  
 We hereby acknowledge
that under the terms of the Trust Agreement among HMB Acceptance Corp., as Depositor, Wilmington Trust Company, as Owner Trustee, and U.S. Bank National Association, as Administrator, dated as of February 1, 2005, no transfer of the Certificate
shall be permitted to be made to any person unless the Certificate Registrar has received a certificate from such transferee in the form hereof. 
  
 We hereby indemnify the Depositor, Certificate Registrar and the Owner Trustee against any liability that may result to either of them if our transfer or
other disposition of the Certificate (or any interest therein) is not exempt from the registration requirements of the Act and any applicable state securities laws or is not made in accordance with such federal and state laws, the provisions of this
certificate or the applicable provisions of the Indenture. 
  

			
	 Very truly yours,

	
	 [Name of Transferee]

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 C-2Transfer and Servicing Agreement

 EXHIBIT 10.3 
  
 EXECUTION 
  
 HOMEBANC MORTGAGE TRUST 2005-1, as Issuer 
  
 HMB ACCEPTANCE CORP., as Depositor 
  
 WELLS FARGO BANK, N.A., as Securities Administrator and Master Servicer 
  
 HOMEBANC CORP., as Seller and Servicer 
  
 and 
  
 U.S. BANK NATIONAL ASSOCIATION, as Indenture Trustee 
  

  
 TRANSFER AND SERVICING
AGREEMENT 
  
 Dated as of February 1, 2005 
  

  
 HOMEBANC MORTGAGE TRUST 2005-1 
 MORTGAGE BACKED NOTES 

 TABLE OF CONTENTS 
  

 

					
	 	  	Page

	ARTICLE I
	
	DEFINITIONS
			
	Section 1.01.	  	Definitions	  	4
	Section 1.02.	  	Calculations With Respect to the Mortgage Loans	  	31
	Section 1.03.	  	Calculations With Respect to Accrued Interest	  	31
	
	ARTICLE II
	
	CONVEYANCE OF MORTGAGE LOANS
			
	Section 2.01.	  	Creation and Declaration of Trust Estate; Conveyance of Mortgage Loans.	  	31
	Section 2.02.	  	Acceptance of Trust Estate; Review of Documentation.	  	35
	Section 2.03.	  	Grant Clause.	  	37
	Section 2.04.	  	Option to Contribute Derivative Instrument	  	38
	
	ARTICLE III
	
	REPRESENTATIONS AND WARRANTIES
			
	Section 3.01.	  	Representations and Warranties of the Depositor and the Seller.	  	39
	Section 3.02.	  	Discovery of Breach	  	41
	Section 3.03.	  	Repurchase, Purchase or Substitution of Mortgage Loans.	  	41
	Section 3.04.	  	Representations and Warranties of the Depositor with respect to Security Interest	  	42
	
	ARTICLE IV
	
	ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS BY THE SERVICER
			
	Section 4.01.	  	Servicer to Perform Servicing Responsibilities.	  	43
	Section 4.02.	  	Servicing of the Mortgage Loans.	  	44
	Section 4.03.	  	Payments to the Master Servicer.	  	57
	Section 4.04.	  	General Servicing Procedures.	  	60

  

 i 

					
	Section 4.05.	  	Representations, Warranties and Agreements.	  	64
	Section 4.06.	  	The Servicer.	  	67
	Section 4.07.	  	Termination for Cause.	  	69
	Section 4.08.	  	Successor to Servicer	  	71
	Section 4.09.	  	Subservicers and Subservicing Agreements.	  	72
	
	ARTICLE V
	
	ADMINISTRATION AND MASTER SERVICING OF MORTGAGE LOANS BY THE MASTER SERVICER AND THE SECURITIES ADMINISTRATOR
			
	Section 5.01.	  	Duties of the Master Servicer; Representations and Warranties.	  	73
	Section 5.02.	  	Master Servicer Fidelity Bond and Master Servicer Errors and Omissions Insurance Policy.	  	75
	Section 5.03.	  	Master Servicer’s Financial Statements and Related Information	  	76
	Section 5.04.	  	Power to Act; Procedures.	  	77
	Section 5.05.	  	Enforcement of Servicer’s and Master Servicer’s Obligations.	  	78
	Section 5.06.	  	Collection Account.	  	78
	Section 5.07.	  	Application of Funds in the Collection Account	  	80
	Section 5.08.	  	Reports to Indenture Trustee and Noteholders.	  	82
	Section 5.09.	  	Termination of Servicer; Successor Servicers.	  	85
	Section 5.10.	  	Master Servicer Liable for Enforcement	  	86
	Section 5.11.	  	Assumption of Master Servicing by Indenture Trustee.	  	86
	Section 5.12.	  	Release of Mortgage Files.	  	87
	Section 5.13.	  	Documents, Records and Funds in Possession of Master Servicer to be Held for Indenture Trustee.	  	88
	Section 5.14.	  	Opinion	  	89
	Section 5.15.	  	Indenture Trustee To Retain Possession of Certain Insurance Policies and Documents	  	89
	Section 5.16.	  	Compensation to the Master Servicer	  	90
	Section 5.17.	  	Annual Officer’s Certificate as to Compliance.	  	90
	Section 5.18.	  	Annual Independent Accountants’ Servicing Report	  	91
	Section 5.19.	  	Merger or Consolidation	  	91
	Section 5.20.	  	Resignation of Master Servicer	  	91
	Section 5.21.	  	Assignment or Delegation of Duties by the Master Servicer	  	92
	Section 5.22.	  	Limitation on Liability of the Master Servicer and Others.	  	92
	Section 5.23.	  	Indemnification; Third Party Claims	  	93
	Section 5.24.	  	Alternative Index	  	93
	Section 5.25.	  	Transfer of Servicing	  	94
	Section 5.26.	  	Compliance with Safeguarding Customer Information Requirements	  	95

  

 ii 

					
	ARTICLE VI
	
	DEPOSITS AND PAYMENTS TO HOLDERS
			
	Section 6.01.	  	The Note Payment Account.	  	95
	Section 6.02.	  	Payments from the Note Payment Account.	  	96
	Section 6.03.	  	Control of the Trust Account and Deferred Interest.	  	99
	Section 6.04.	  	Monthly Advances by Master Servicer and Servicer.	  	103
	Section 6.05.	  	Cap Agreements.	  	103
	
	ARTICLE VII
	
	THE SECURITIES ADMINISTRATOR
			
	Section 7.01.	  	Duties of the Securities Administrator	  	105
	Section 7.02.	  	Records	  	105
	Section 7.03.	  	Compensation	  	108
	Section 7.04.	  	Additional Information to be Furnished to the Issuer	  	108
	Section 7.05.	  	Independence of the Securities Administrator	  	108
	Section 7.06.	  	No Joint Venture	  	108
	Section 7.07.	  	Other Activities of Securities Administrator	  	108
	Section 7.08.	  	Resignation and Removal of Securities Administrator.	  	108
	Section 7.09.	  	Action upon Termination, Resignation or Removal of the Securities Administrator	  	108
	
	ARTICLE VIII
	
	MASTER SERVICER EVENTS OF DEFAULT
			
	Section 8.01.	  	Master Servicer Events of Default; Indenture Trustee To Act; Appointment of Successor.	  	108
	Section 8.02.	  	Additional Remedies of Indenture Trustee Upon Event of Default	  	112
	Section 8.03.	  	Waiver of Defaults	  	113
	Section 8.04.	  	Notification to Holders	  	113
	Section 8.05.	  	Directions by Noteholders and Duties of Indenture Trustee During Master Servicer Event of Default	  	113
	Section 8.06.	  	Action Upon Certain Failures of the Master Servicer and Upon Master Servicer Event of Default	  	114
	Section 8.07.	  	Preparation of Reports.	  	114

  

 iii 

					
	ARTICLE IX
	
	TERMINATION
			
	Section 9.01.	  	Termination	  	115
	Section 9.02.	  	Termination Prior to Maturity Date; Optional Redemption.	  	115
	Section 9.03.	  	Certain Notices upon Final Payment	  	116
	
	ARTICLE X
	
	MISCELLANEOUS PROVISIONS
			
	Section 10.01.	  	Binding Nature of Agreement; Assignment	  	116
	Section 10.02.	  	Entire Agreement	  	116
	Section 10.03.	  	Amendment.	  	116
	Section 10.04.	  	Acts of Noteholders	  	117
	Section 10.05.	  	Recordation of Agreement	  	118
	Section 10.06.	  	Governing Law	  	118
	Section 10.07.	  	Notices	  	118
	Section 10.08.	  	Severability of Provisions	  	120
	Section 10.09.	  	Indulgences; No Waivers	  	121
	Section 10.10.	  	Headings Not To Affect Interpretation	  	121
	Section 10.11.	  	Benefits of Agreement	  	121
	Section 10.12.	  	Special Notices to the Rating Agencies.	  	121
	Section 10.13.	  	Counterparts	  	122
	Section 10.14.	  	Agreement of the Issuer	  	122
	Section 10.15.	  	Execution by the Issuer	  	122

  

 iv 

 ATTACHMENTS 

			
	Exhibit A-1	    	Form of Initial Certification
	Exhibit A-2	    	Form of Interim Certification
	Exhibit A-3	    	Form of Final Certification
	Exhibit A-4	    	Form of Endorsement
	Exhibit A-5	    	Form of Request For Release
	Exhibit B	    	Form of Lost Note Affidavit
	Exhibit C	    	Custodial Agreement
	Exhibit D	    	Custodial Account Letter Agreement
	Exhibit E	    	Escrow Account Letter Agreement
	Exhibit F	    	Standard Layout For Monthly Defaulted Loan Report
		
	Schedule A	    	Mortgage Loan Schedule

  

 v 

 This TRANSFER AND SERVICING AGREEMENT, dated as of February 1, 2005 (this “Agreement” or this
“Transfer and Servicing Agreement”), is by and among HOMEBANC MORTGAGE TRUST 2005-1, a Delaware statutory trust, as issuer (the “Issuer”), HMB ACCEPTANCE CORP., a Delaware corporation, as depositor (the “Depositor”),
U.S. BANK NATIONAL ASSOCIATION, as indenture trustee (the “Indenture Trustee”), WELLS FARGO BANK, N.A., as securities administrator (in such capacity, the “Securities Administrator”) and master servicer (in such capacity, the
“Master Servicer”) and HOMEBANC CORP., a Georgia corporation, as seller (in such capacity, the “Seller”) and servicer (in such capacity, the “Servicer”). 
  
 PRELIMINARY STATEMENT 
  
 WHEREAS, the Depositor has acquired all of the rights, title and interest of the Seller in certain conventional, first lien, adjustable rate, residential
mortgage loans identified in Schedule A hereto (the “Mortgage Loans”) from the Seller pursuant to the Mortgage Loan Purchase Agreement, and at the Closing Date is the owner of the Mortgage Loans and the other property being conveyed by it
to the Issuer hereunder for inclusion in the Trust Estate; 
  
 WHEREAS, the Depositor has duly authorized the execution and delivery of this Agreement to provide for the conveyance to the Issuer of the Mortgage Loans and the other property constituting the Trust Estate; 
  
 WHEREAS, on the Closing Date, the Depositor will acquire the Notes and the
Ownership Certificate from the Issuer as consideration for its transfer to the Issuer of the Mortgage Loans and the other property constituting the Trust Estate; 
  
 WHEREAS, pursuant to the Indenture, the Issuer will pledge the Mortgage Loans and the other property constituting the Trust
Estate to the Indenture Trustee as security for the Notes; 
  
 WHEREAS, the Issuer desires that the Servicer service the Mortgage Loans upon such transfer to the Issuer pursuant to this Agreement, and the Servicer has agreed to do so; 
  
 WHEREAS, the Master Servicer shall be obligated under this Agreement, among other things, to supervise the servicing of the
Mortgage Loans on behalf of the Issuer, and shall have the right, under certain circumstances, to terminate the rights and obligations of the Servicer under this Agreement upon the occurrence and continuance of a Servicing Event of Default as
provided herein; 
  
 WHEREAS, the parties hereto acknowledge and
agree that, at the direction of the Depositor, the Seller will assign all of its rights with respect to the Mortgage Loans to the Indenture Trustee; 
  
 WHEREAS, the Issuer desires to have the Securities Administrator perform certain duties consistent with the terms of this Agreement; and 
  
 WHEREAS, the Securities Administrator has the capacity to provide the
services required hereby and is willing to perform such services on the terms set forth herein. 
  
  

 NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as
follows: 
  
 The following table sets forth (or describes) the
class designation, Note Interest Rate, initial Class Principal Amount and minimum denomination for each Class of Notes issued pursuant to the Indenture: 
  

									
	 Class
 Designation

	  	Note Interest
Rate

	 	 Initial
 Class Principal
Amount or Class
Notional Amount

	  	Minimum
Denominations

	 Class A-1
	  	(1)	 	$	848,625,000	  	$	25,000
	 Class A-2
	  	(2)	 	$	109,783,000	  	$	25,000
	 Class M-1
	  	(3)	 	$	21,957,000	  	$	25,000
	 Class M-2
	  	(4)	 	$	30,190,000	  	$	25,000
	 Class M-3
	  	(5)	 	$	11,527,000	  	$	25,000
	 Class M-4
	  	(6)	 	$	10,978,000	  	$	25,000
	 Class M-5
	  	(7)	 	$	24,701,000	  	$	25,000
	 Class M-6
	  	(8)	 	$	12,076,000	  	$	25,000
	 Class B-1
	  	(9)	 	$	12,076,000	  	$	25,000
	 Class B-2
	  	(10)	 	$	12,076,000	  	$	25,000

	(1)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class A-1 Notes is the per annum rate equal to the least of (i) LIBOR plus
0.250%per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class A-1 Notes
will be equal to LIBOR plus 0.500% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

	(2)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class A-2 Notes is the per annum rate equal to the least of (i) LIBOR plus 0.310%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class A-2 Notes will be equal
to LIBOR plus 0.620% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

	(3)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class M-1 Notes is the per annum rate equal to the least of (i) LIBOR plus 0.460%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class M-1 Notes will be equal
to LIBOR plus 0.690% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

	(4)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class M-2 Notes is the per annum rate equal to the least of (i) LIBOR plus 0.490%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class M-2 Notes will be equal
to LIBOR plus 0.735% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

  

 2 

	(5)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class M-3 Notes is the per annum rate equal to the least of (i) LIBOR plus 0.520%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class M-3 Notes will be equal
to LIBOR plus 0.780% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

	(6)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class M-4 Notes is the per annum rate equal to the least of (i) LIBOR plus 0.700%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class M-4 Notes will be equal
to LIBOR plus 1.050% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

	(7)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class M-5 Notes is the per annum rate equal to the least of (i) LIBOR plus 0.750%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class M-5 Notes will be equal
to LIBOR plus 1.125% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

	(8)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class M-6 Notes is the per annum rate equal to the least of (i) LIBOR plus 0.800%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class M-6 Notes will be equal
to LIBOR plus 1.200% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

	(9)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class B-1 Notes is the per annum rate equal to the least of (i) LIBOR plus 1.250%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class B-1 Notes will be equal
to LIBOR plus 1.875% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

	(10)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class B-2 Notes is the per annum rate equal to the least of (i) LIBOR plus 1.300%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class B-2 Notes will be equal
to LIBOR plus 1.950% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

  

 3 

 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.01. Definitions. The following words and phrases, unless the context otherwise requires, shall have the following meanings: 

 
 3/6 Hybrid Loan Cap Agreement: The interest rate cap agreement
dated February 18, 2005, between the Trust and the Cap Counterparty, with respect to 3/6 hybrid mortgage loans. 
  
 3/6 Hybrid Loan Cap Agreement Payment Date: With respect to the 3/6 Hybrid Loan Cap Agreement, one Business Day immediately prior to the related
Payment Date, beginning with the Payment Date in March 2005 and ending with the Payment Date in December 2007. 
  
 5/6 Hybrid Loan Cap Agreement: The interest rate cap agreement dated February 18, 2005, between the Trust and the Cap Counterparty, with respect to
5/6 hybrid mortgage loans. 
  
 5/6 Hybrid Loan Cap Agreement
Payment Date: With respect to the 5/6 Hybrid Loan Cap Agreement, one Business Day immediately prior to the related Payment Date, beginning with the Payment Date in March 2005 and ending with the Payment Date in December 2009. 

 
 7/6 Hybrid Loan Cap Agreement: The interest rate cap agreement
dated February 18, 2005, between the Trust and the Cap Counterparty, with respect to 7/6 hybrid mortgage loans. 
  
 7/6 Hybrid Loan Cap Agreement Payment Date: With respect to the 7/6 Hybrid Loan Cap Agreement, one Business Day immediately prior to the related
Payment Date, beginning with the Payment Date in March 2005 and ending with the Payment Date in December 2009. 
  
 A-1 Principal Deficiency Amount: With respect to any Payment Date, the lesser of (a) the excess, if any, of (1) the Total Principal Deficiency
Amount over (2) the sum of the A-2 Principal Deficiency Amount, the M-1 Principal Deficiency Amount, the M-2 Principal Deficiency Amount, the M-3 Principal Deficiency Amount, the M-4 Principal Deficiency Amount, the M-5 Principal Deficiency Amount,
the M-6 Principal Deficiency Amount, the B-1 Principal Deficiency Amount and the B-2 Principal Deficiency Amount, in each case for that Payment Date, and (b) the Class Principal Amount of the Class A-1 Notes immediately prior to such Payment Date.

  
 A-2 Principal Deficiency Amount: With respect to any
Payment Date, the lesser of (a) the excess, if any, of (1) the Total Principal Deficiency Amount over (2) the sum of the M-1 Principal Deficiency Amount, the M-2 Principal Deficiency Amount, the M-3 Principal Deficiency Amount, the M-4 Principal
Deficiency Amount, the M-5 Principal Deficiency Amount, the M-6 Principal Deficiency Amount, the B-1 Principal Deficiency Amount and the B-2 Principal Deficiency Amount, in each case for that Payment Date, and (b) the Class Principal Amount of the
Class A-2 Notes immediately prior to such Payment Date. 
  

 4 

 Accepted Servicing Practices: With respect to any Mortgage Loan, those mortgage loan servicing
practices (including collection procedures) of prudent mortgage banking institutions which service mortgage loans of the same type as such Mortgage Loan in the jurisdiction where the related Mortgaged Property is located, and which are in accordance
with Fannie Mae servicing practices and procedures, for MBS pool mortgages, as defined in the Fannie Mae Guides including future updates. 
  
 Accountant: A Person engaged in the practice of accounting who (except when this Agreement provides that an Accountant must be Independent) may be
employed by or affiliated with the Depositor or an Affiliate of the Depositor. 
  
 Accounts: Any or all of the Custodial Accounts, the Escrow Accounts, the Collection Account, the Note Payment Account, the Cap Account and any other accounts created or maintained by the Master Servicer, the
Indenture Trustee or the Servicer pursuant to this Agreement. 
  
 Accrual Period: With respect to any Payment Date and any Class of Notes, the period beginning on immediately preceding Payment Date (or on the Closing Date, in the case of the first Accrual Period) and ending on the day immediately
preceding the related Payment Date. 
  
 Accrued Note
Interest: With respect to any Payment Date and any Class of Notes, the aggregate amount of interest accrued at the applicable Note Interest Rate during the related Accrual Period on the Class Principal Amount of such Class immediately prior to
such Payment Date, plus Accrued Note Interest remaining unpaid from any prior Payment Date with interest thereon at the related Note Interest Rate, provided, however, that for any class of Notes and any Payment Date, Accrued Note Interest
will be reduced by the amount specified in clause (a) of the definition of Deferred Interest, if any for such Class and Payment Date. 
  
 Adjustment Date: With respect to any Mortgage Loan, the date on which an adjustment is made to the Monthly Payment to correspond to an adjustment
in the related Mortgage Note. 
  
 Administration Agreement:
The administration agreement dated as of February 1, 2005, among the Issuer, the Indenture Trustee, the Owner Trustee and the Depositor. 
  
 Administrator: U.S. Bank National Association, not in its individual capacity but solely as Administrator, or any successor in interest.

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

 

 5 

 Agreement: This Transfer and Servicing Agreement and all amendments and supplements hereto.

  
 Agreements: Collectively, the Transfer and Servicing
Agreement, the Trust Agreement, the Indenture, the Mortgage Loan Purchase Agreement, the Subservicing Agreement and the Administration Agreement. 
  
 Ancillary Income: All income derived from the Mortgage Loans, excluding Servicing Fees attributable to the Mortgage Loans and other amounts treated
as payment proceeds of the Mortgage Loans, including but not limited to, late charges, fees received with respect to checks or bank drafts returned by the related bank for non-sufficient funds, assumption fees, optional insurance administrative fees
and all other incidental fees and charges. 
  
 Appraised
Value: With respect to any Mortgaged Property, 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 an appraiser who met the requirements of the Servicer
and Fannie Mae, or as determined by use of an automated valuation model, provided, however, that the use of an automated valuation model shall be permitted only upon the presentation by the Servicer to the Indenture Trustee of an approval letter
acceptable to the Indenture Trustee from each of the Rating Agencies, which letters shall state that use of an automated valuation model shall have no adverse effect in any material respect on the interests of any Noteholder. 
  
 Assignment of Mortgage: 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 of record the sale of the Mortgage, which assignment, notice of transfer or equivalent
instrument may be in the form of one or more blanket assignments covering Mortgages secured by Mortgaged Properties located in the same county, if permitted by law. 
  
 Available Funds Rate: With respect to any Payment Date and the Notes, the per annum rate equal to the product of (1)
(a) 360 divided by (b) the actual number of days in the Accrual Period, and (2) (a) the total interest received or advanced on the Mortgage Loans for the related Collection Period, divided by (b) the aggregate Class Principal Amount of
the Notes as of the first day of the related Accrual Period. 
  
 Authorized Officer: Any Person who may execute an Officer’s Certificate on behalf of the Issuer. 
  
 B-1 Principal Deficiency Amount: With respect to any Payment Date, the lesser of (a) the excess, if any, of (1) the Total Principal Deficiency
Amount over (2) the B-2 Principal Deficiency Amount for that Payment Date, and (b) the Class Principal Amount of the Class B-1 Notes immediately prior to such Payment Date. 
  

 6 

 B-2 Principal Deficiency Amount: With respect to any Payment Date, the lesser of (a) the Total
Principal Deficiency Amount for that Payment Date, and (b) the Class Principal Amount of the Class B-2 Notes immediately prior to such Payment Date. 
  
 Bankruptcy: As to any Person, the making of an assignment for the benefit of creditors, the filing of a voluntary petition in bankruptcy,
adjudication as a bankrupt or insolvent, the entry of an order for relief in a bankruptcy or insolvency proceeding, the seeking of reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief, or seeking,
consenting to or acquiescing in the appointment of a trustee, receiver or liquidator, dissolution, or termination, as the case may be, of such Person pursuant to the provisions of either the Bankruptcy Code, or any other similar state laws.

  
 Bankruptcy Code: The United States Bankruptcy Code of
1986, as amended. 
  
 Bankruptcy Loss: Any loss
resulting from a bankruptcy court, in connection with a personal bankruptcy of a borrower, (1) establishing the value of a Mortgaged Property at an amount less than the Outstanding 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. 
  
 Basis Risk Shortfall: With respect to each Payment Date and any Class of Notes, an amount equal to the sum of (1) the excess, if any, of (a) Accrued Note Interest calculated without regard to the Available
Funds Rate over (b) the aggregate of interest accrued on such Class at an interest rate equal to the Available Funds Rate, (2) any amount described in clause (1) above for such Class remaining unpaid from prior Payment Dates and (3) interest on the
amount in clause (2) above at such Class’s applicable Note Interest Rate (without regard to the Available Funds Rate). 
  
 Basis Risk Shortfall Carryforward Amount: With respect to each Class of Notes and any Payment Date, an amount equal to the aggregate amount of
Basis Risk Shortfall for such Class of Notes on such Payment Date, plus any unpaid Basis Risk Shortfall for such Class of Notes from prior Payment Dates, plus interest thereon at the Note Interest Rate for such Payment Date for such Class for the
related Accrual Period, to the extent previously unpaid from Monthly Excess Cashflow or from proceeds of the Cap Agreements. 
  
 Book-Entry Notes: As defined in the Indenture. 
  
 Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a day on which banking institutions in New York, New York or, if other than New
York, the city in which the Corporate Trust Office of the Indenture Trustee is located, or the States of Delaware, Georgia, Maryland, Massachusetts, Minnesota or Texas are authorized or obligated by law or executive order to be closed. 

 

 7 

 Cap Account: A separate account established and maintained by the Indenture Trustee for the
benefit of the Noteholders pursuant to Section 6.05. 
  
 Cap
Agreement: The 3/6 Hybrid Loan Cap Agreement, the 5/6 Hybrid Loan Cap Agreement or the 7/6 Hybrid Loan Cap Agreement, as applicable. 
  
 Cap Agreement Payment Date: The 3/6 Hybrid Loan Cap Agreement Payment Date, the 5/6 Hybrid Loan Cap Agreement Payment Date or the 7/6 Hybrid Loan
Cap Agreement Payment Date, as applicable.  
  
 Cap
Counterparty: Bear Stearns Financial Products Inc. 
  
 Cap Receipt: With respect to any Cap Agreement Payment Date, any amount received from the Cap Counterparty under any Cap Agreement. 
  
 Certificate: The Ownership Certificate. 
  
 Certificate Distribution Account: As defined in the Trust Agreement. 
  
 Certificate of Trust: As defined in the Trust Agreement. 
  
 Certificate Registrar: As defined in the Trust Agreement, the initial
Certificate Registrar shall be the Administrator. 
  
 Certificateholder: Any registered holder of the Ownership Certificate. 
  
 Civil Relief Act: The Servicemembers Civil Relief Act, as such may be amended from time to time, and any similar state or local laws. 
  
 Class: All Notes bearing the same class designation. 
  
 Class Principal Amount: With respect to any Class of Notes as of any Payment Date, its initial Class Principal Amount
as of the Closing Date, as reduced by all amounts previously paid on that Class in respect of principal prior to such Payment Date. 
  
 Clearing Agency: An organization registered as a “clearing agency” pursuant to Section 17A of the Exchange Act, as amended. As of the
Closing Date, the Clearing Agency shall be The Depository Trust Company. 
  
 Closing Date: February 23, 2005. 
  
 Code: The Internal Revenue Code of 1986, as amended. 
  
 Collateral: As defined in the Indenture. 
  

 8 

 Collection Account: A separate account established and maintained by the Master Servicer for the
benefit of the Indenture Trustee pursuant to Section 5.06. 
  
 Collection Period: With respect to any Payment Date, the one-month period commencing on the second day of the calendar 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. 
  
 Compensating Interest
Payment: With respect to any Payment Date, an amount equal to the lesser of (x) the aggregate Prepayment Interest Shortfall Amount with respect to such Payment Date and (y) the aggregate Servicing Fee payable to the Servicer in respect of such
Payment Date. 
  
 Condemnation Proceeds: All awards
of settlements in respect of a Mortgaged Property, whether permanent or temporary, partial or entire, by exercise of the power of eminent domain or condemnation, to the extent not required to be released to a Mortgagor in accordance with the terms
of the related mortgage loan documents. 
  
 Control: The
meaning specified in Section 8-106 of the New York UCC. 
  
 Conforming Balance Mortgage Loan: A Mortgage Loan that has a Scheduled Principal Balance as of the Cut-off Date that is less than or equal to the Fannie Mae maximum original loan amount limitation for one-to four-family Mortgaged
Properties for the applicable jurisdiction in which the Mortgaged Property is located. 
  
 Corporate Trust Office: With respect to (i) the Securities Administrator, the principal corporate trust office of the Securities Administrator at which, at any particular time, its corporate trust business
shall be administered, which office at the date of execution of this Agreement for all purposes is located at Wells Fargo Bank, N.A., P.O. Box 98, Columbia, Maryland 21046 (or for overnight deliveries, at 9062 Old Annapolis Road, Columbia, Maryland
21045), Attention: Client Manager (HomeBanc 2005-1); (ii) the Administrator, the principal office of the Administrator at which at any particular time its corporate trust business shall be administered, which office at the date of execution of this
Agreement is located at One Federal Street, 3rd Floor, Boston, Massachusetts 02110, Attention: Corporate Trust
Office Trust Services/HomeBanc 2005-1, or at such other address as the Administrator may designate from time to time by notice to the Noteholders and the Trust (iii) the Certificate Registrar, the principal office of the Certificate Registrar at
which at any particular time its corporate trust business shall be administered, which office at the date of execution of this Agreement is located at the Corporate Trust Office of the Administrator, or at such other address as the Certificate
Registrar may designate from time to time by notice to the Noteholders and the Trust, or the principal corporate trust office of any successor Certificate Registrar at the address designated by such successor Certificate Registrar by notice to the
Noteholders and the Trust; and (iv) the Indenture Trustee, the principal office of the Indenture Trustee at which at any particular time its corporate trust business shall be administered, which office at the date of execution of this 

  

 9 

 
Agreement is located at One Federal Street, 3rd Floor, Boston, Massachusetts 02110, Attention: Corporate Trust Office Trust Services/HomeBanc 2005-1, or at such other address as the Indenture Trustee may designate from time to time by notice to the Noteholders and the
Trust, or the principal corporate trust office of any successor Indenture Trustee at the address designated by such successor Indenture Trustee by notice to the Noteholders and the Trust. 
  
 Custodial Account: The separate custodial account (other than an Escrow Account) established and maintained by the
Servicer pursuant to Section 4.02(d) of this Agreement. 
  
 Custodial Agreement: The custodial agreement dated as of February 1, 2005, relating to the custody of certain of the Mortgage Loans, substantially in the form attached as Exhibit C hereto, among the Custodian, the Issuer, the
Depositor and the Indenture Trustee. 
  
 Custodian: The
custodian appointed pursuant to the Custodial Agreement, and any successor thereto. The initial Custodian is JPMorgan Chase Bank, National Association. 
  
 Custodian Fee: The annual fee payable by the Master Servicer on behalf of the Trust to the Custodian from income on funds held in the Collection
Account as provided in Section 5.07 and pursuant to the terms of the separate fee letter agreement for HomeBanc Mortgage Trust 2005-1 Mortgage Backed Notes. 
  
 Cut-off Date: February 1, 2005. 
  
 Cut-off Date Balance: $1,097,833,204.51. 
  
 Deferred Interest: With respect to any Class of Notes for any Payment Date, an amount equal to the sum of (a) the
aggregate amount of interest accrued at the applicable Note Interest Rate during the related Accrual Period on the Principal Deficiency Amount for that Class, (b) any amounts due pursuant to clause (a) for such Class for prior Payment Dates that
remain unpaid and (c) interest accrued during the Accrual Period related to such Payment Date on the amount described in clause (b) at the Note Interest Rate applicable to such Class. 
  
 Deficient Valuation: With respect to any Mortgage Loan, a valuation of the Mortgaged Property by a court of competent
jurisdiction in an amount less than the unpaid principal balance of the Mortgage Loan secured by such Mortgaged Property. 
  
 Deleted Mortgage Loan: A Mortgage Loan that is repurchased from the Trust Estate pursuant to the terms hereof or as to which one or more Qualifying
Substitute Mortgage Loans are substituted therefor. 
  
 Delinquent: For reporting purposes, a Mortgage Loan is “delinquent” when any payment contractually due thereon has not been made by the close of business on the Due Date therefor. Such 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 first due, or, if there is no such corresponding day (e.g., as
when a 30-day 

  

 10 

 
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” and the second immediately succeeding month and “90 days Delinquent” and the third immediately succeeding month. 
  
 Depositor: HMB Acceptance Corp., a Delaware corporation. 
  

Depository Agreement: The agreement dated February 22, 2005, between the Issuer and The Depository Trust Company, as the initial Clearing
Agency, relating to the Book-Entry Notes. 
  
 Determination
Date: With respect to each Payment Date, the 15th day of the related calendar month, or, if such day is not a Business Day, the immediately preceding Business Day. 
  
 Due Date: With respect to each Mortgage Loan, the day of the month each Monthly Payment is due. 
  
 Eligible Account: Either (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company that complies with the definition of Eligible Institution or (ii) an account or accounts the deposits in which are insured by the FDIC to the limits established by such corporation,
provided that any such deposits not so insured shall be maintained in an account at a depository institution or trust company whose commercial paper or other short term debt obligations (or, in the case of a depository institution or trust
company which is the principal subsidiary of a holding company, the commercial paper or other short term debt or deposit obligations of such holding company or depository institution, as the case may be) have been rated by each Rating Agency in its
highest short-term rating category, or (iii) a segregated trust account or accounts (which shall be a “special deposit account”) maintained with the Securities Administrator or any other federal or state chartered depository institution or
trust company, acting in its fiduciary capacity, in a manner acceptable to the Rating Agencies. Eligible Accounts may bear interest. 
  
 Eligible Institution: Any of the following: 
  
 (i) An institution whose: 
  
 (A) commercial paper, short-term debt obligations, or other short-term deposits are rated at least “A-1+” or long-term unsecured
debt obligations are rated at least “AA-” by S&P (or assigned comparable ratings by the other Rating Agencies), if the amounts on deposit are to be held in the account for no more than 365 days; or 
  
 (B) commercial paper, short-term debt obligations, demand
deposits, or other short-term deposits are rated at least “A-2” by S&P (or assigned comparable ratings by the other Rating Agencies), if the amounts on deposit are to be held in the account for no more than 30 days and are not intended
to be used as credit enhancement. Upon the loss of the required rating set forth in this clause (ii), the accounts shall be transferred 

  

 11 

 
immediately to accounts which have the required rating. Furthermore, commingling by the Servicer is acceptable at the A-2 rating level if the Servicer is a
bank, thrift or depository and provided the Servicer has the capability to immediately segregate funds and commence remittance to an Eligible Deposit Account upon a downgrade; or 
  
 (ii) the corporate trust department of a federal depositor institution or state-chartered depositor institution subject to
regulations regarding fiduciary funds on deposit similar to Title 12 of the U.S. Code of Federal Regulation Section 9.10(b), which, in either case, has corporate trust powers and is acting in its fiduciary capacity. 
  
 Eligible Investments: Any one or more of the following obligations or
securities: 
  
 (i) direct obligations of, and obligations fully
guaranteed as to timely payment of principal and interest by, the United States of America or any agency or instrumentality of the United States of America the obligations of which are backed by the full faith and credit of the United States of
America (“Direct Obligations”); 
  
 (ii) federal funds,
or demand and time deposits in, certificates of deposits of, or bankers’ acceptances issued by, any depository institution or trust company (including U.S. subsidiaries of foreign depositories and the Indenture Trustee or the Securities
Administrator or any agent of the Indenture Trustee or the Securities Administrator, acting in its respective commercial capacity) incorporated or organized under the laws of the United States of America or any state thereof and subject to
supervision and examination by federal or state banking authorities, so long as at the time of investment or the contractual commitment providing for such investment the commercial paper or other short-term debt obligations of such depository
institution or trust company (or, in the case of a depository institution or trust company which is the principal subsidiary of a holding company, the commercial paper or other short-term debt or deposit obligations of such holding company or
deposit institution, as the case may be) have been rated by each Rating Agency in its highest short-term rating category or one of its two highest long-term rating categories; 
  
 (iii) repurchase agreements collateralized by Direct Obligations or securities guaranteed by Ginnie Mae, Fannie Mae or
Freddie Mac with any registered broker/dealer subject to Securities Investors’ Protection Corporation jurisdiction or any commercial bank insured by the FDIC, if such broker/dealer or bank has an uninsured, unsecured and unguaranteed obligation
rated by each Rating Agency in its highest short-term rating category; 
  
 (iv) securities bearing interest or sold at a discount issued by any corporation incorporated under the laws of the United States of America or any state thereof which have a credit rating from each Rating Agency, at the time of investment
or the contractual commitment providing for such investment, at least equal to one of the two highest long-term credit rating categories of each Rating Agency; provided, however, that securities issued by any particular corporation will not
be Eligible Investments to the extent that investment therein will cause the then outstanding principal amount of securities issued by such corporation and held as part of the 

  

 12 

 
Trust Estate to exceed 20% of the sum of the Pool Balance and the aggregate principal amount of all Eligible Investments in the Collection Account;
provided, further, that such securities will not be Eligible Investments if they are published as being under review with negative implications from any Rating Agency; 
  
 (v) commercial paper (including both non-interest-bearing discount obligations and interest-bearing obligations payable on
demand or on a specified date not more than 180 days after the date of issuance thereof) rated by each Rating Agency in its highest short-term rating category; 
  

(vi) a Qualified GIC; 
  
 (vii) certificates or receipts representing direct ownership interests in future interest or principal payments on obligations of the United States of
America or its agencies or instrumentalities (which obligations are backed by the full faith and credit of the United States of America) held by a custodian in safekeeping on behalf of the holders of such receipts; and 
  
 (viii) any other demand, money market, common trust fund or time deposit or
obligation, or interest-bearing or other security or investment (including those managed or advised by the Indenture Trustee, the Master Servicer, the Securities Administrator, or any Affiliate thereof), (A) rated in the highest rating category by
each Rating Agency or (B) that would not adversely affect the then current rating assigned by each Rating Agency of any of the Notes. Such investments in this subsection (viii) may include money market mutual funds or common Trust Estates, including
any fund for which Wells Fargo Bank, N.A. (the “Bank”) in its capacity other than as the Master Servicer, the Securities Administrator or an affiliate thereof serves as an investment advisor, administrator, shareholder servicing agent,
and/or custodian or subcustodian, notwithstanding that (x) the Bank, the Indenture Trustee, the Master Servicer or any affiliate thereof charges and collects fees and expenses from such funds for services rendered, (y) the Bank, the Indenture
Trustee, the Securities Administrator, the Master Servicer or any affiliate thereof charges and collects fees and expenses for services rendered pursuant to this Agreement, and (z) services performed for such funds and pursuant to this Agreement may
converge at any time. The Bank or an affiliate thereof is specifically authorized to charge and collect from the Issuer such fees as are collected from all investors in such funds for services rendered to such funds (but not to exceed investment
earnings thereon); 
  
 provided, however, that no such instrument shall be
an Eligible Investment if such instrument evidences either (i) a right to receive only interest payments with respect to the obligations underlying such instrument, or (ii) both principal and interest payments derived from obligations underlying
such instrument and the principal and interest payments with respect to such instrument provide a yield to maturity of greater than 120% of the yield to maturity at par of such underlying obligations, provided that any such investment will be
a “permitted investment” within the meaning of Section 860G(a)(5) of the Code. 
  

 13 

 Entitlement Holder: The meaning specified in Section 8-102(a)(7) of the New York UCC. 

 
 Entitlement Order: The meaning specified in Section 8-102(a)(8) of
the New York UCC (i.e., generally, orders directing the transfer or redemption of any Financial Asset). 
  
 ERISA: The Employee Retirement Income Security Act of 1974, as amended. 
  
 Errors and Omissions Insurance: Errors and Omissions Insurance to be maintained by the Servicer in accordance with
Section 4.02. 
  
 Escrow Account: The separate escrow
account (other than a Custodial Account) established and maintained by the Servicer pursuant to Section 4.02(f) of this Agreement. 
  
 Escrow Payments: With respect to any Mortgage Loan, the amounts constituting ground rents, taxes, assessments, water rates, sewer rents, municipal
charges, mortgage insurance premiums, fire and hazard insurance premiums, condominium charges, and any other payments required to be escrowed by the Mortgagor with the mortgagee pursuant to the Mortgage or any other document. 
  
 Exchange Act: The Securities Exchange Act of 1934, as amended.

  
 Extra Principal Distribution Amount: With respect to
any Payment Date, the lesser of (1) the Monthly Excess Cashflow for such Payment Date and (2) the excess, if any, of (a) the Overcollateralization Target Amount over (b) the Overcollateralized Amount on such Payment Date (after giving effect to
payment to the Notes of Principal Funds on such Payment Date). 
  
 Fannie Mae: Fannie Mae, a federally chartered and privately owned corporation organized and existing under the Federal National Mortgage Association Charter Act, or any successor thereto. 
  
 Fannie Mae Guide(s): The Fannie Mae Selling Guide and the Fannie Mae
Servicing Guide and all amendments or additions thereto. 
  
 FDIC: The Federal Deposit Insurance Corporation or any successor thereto. 
  
 FHA Regulations: Regulations promulgated by HUD under the National Housing Act, codified in 24 Code of Federal Regulations, and other HUD issuances relating to FHA loans, including the related handbooks,
circulars, notices and mortgagee letters. 
  
 Financial
Asset: The meaning specified in Section 8-102(a) of the New York UCC. 
  
 Freddie Mac: The Federal Home Loan Mortgage Corporation, a corporate instrumentality of the United States created and existing under Title III of the Emergency Home Finance Act of 1970, as amended, or any
successor thereto. 
  

 14 

 Ginnie Mae: The Government National Mortgage Association, a wholly owned corporate instrumentality
of the United States within HUD. 
  
 Gross Margin: With
respect to a Mortgage Loan, a fixed percentage amount specified in the related mortgage note that is added to an index to determine the related Mortgage Rate. 
  
 Guidelines: As defined in Section 4.02(p). 
  
 Holder or Noteholder: The registered holder of any Note or Ownership Certificate as recorded on the books of
the Note Registrar or the Certificate Registrar except that, solely for the purposes of taking any action or giving any consent pursuant to this Agreement, any Note registered in the name of the Depositor, the Master Servicer, the Servicer, the
Seller, the Securities Administrator or the Indenture Trustee or any Affiliate thereof (unless any such Person owns 100% of a Class) shall be deemed not to be outstanding in determining whether the requisite percentage necessary to effect any such
consent has been obtained, except that, in determining whether the Indenture Trustee and Securities Administrator shall be protected in relying upon any such consent, only Notes and an Ownership Certificate which a Responsible Officer thereof has
actual knowledge to be so held shall be disregarded. The Indenture Trustee and Securities Administrator may request and conclusively rely on certifications by the Depositor in determining whether any Note, or Ownership Certificate are registered to
an Affiliate of the Depositor. 
  
 HUD: The United States
Department of Housing and Urban Development, or any successor thereto and including the Federal Housing Commissioner and the Secretary of Housing and Urban Development where appropriate under the FHA Regulations. 
  
 Indenture: The Indenture dated as of February 1, 2005, between the
Issuer and the Indenture Trustee, as such may be amended or supplemented from time to time. 
  
 Indenture Events of Default: As defined in Section 5.01 of the Indenture. 
  
 Indenture Trustee: U.S. Bank National Association, not in its individual capacity but solely as Indenture Trustee, or any successor in interest.

  
 Indenture Trustee Fee: The annual fee payable by the
Master Servicer on behalf of the Trust to the Indenture Trustee from income on funds held in the Collection Account as provided in Section 5.07 and pursuant to the terms of the separate fee letter agreement for HomeBanc Mortgage Trust 2005-1
Mortgage Backed Notes. 
  
 Independent: When used
with respect to any Accountants, a Person who is “independent” within the meaning of Rule 2-01(b) of the Securities and Exchange Commission’s Regulation S-X. When used with respect to any other Person, a Person who (a) is in fact
independent of another specified Person and any Affiliate of such other Person, (b) does not have any material direct financial interest in such other Person or any Affiliate of such other Person, and (c) is not connected with such other Person or
any Affiliate of such other Person as an officer, employee, promoter, underwriter, trustee, partner, director or Person performing similar functions. 
  

 15 

 Index: Either the One-Month LIBOR Index or the Six-Month LIBOR Index. 
  
 Initial Purchase Date: The first Payment Date following the month in
which the Pool Balance is initially reduced to less than 20% of the Cut-off Date Balance. 
  
 Insurance Policy: Any primary mortgage insurance policy, standard hazard insurance policy, flood insurance policy, earthquake insurance policy or title insurance policy relating to the Mortgage Loans or the
Mortgaged Properties, to be in effect as of the Closing Date or thereafter during the term of this Agreement. 
  
 Insurance Proceeds: Any amounts paid by an insurer under a primary mortgage insurance policy, any standard hazard insurance policy, flood insurance
policy, title insurance policy or any other insurance policy relating to the Mortgage Loans or related mortgaged properties other than amounts to cover expenses incurred by the Servicer in connection with procuring such proceeds, applied to the
restoration and repair of the related Mortgaged Property or to be paid to the borrower pursuant to the related Mortgage Note or state law. 
  
 Interest Funds: With respect to any Payment Date, the sum of (1) all interest received or advanced by the Servicer or the Master Servicer for the
related Collection Period and available in the Note Payment Account on that Payment Date, (2) all Compensating Interest Payments paid with respect to Mortgage Loans that were prepaid during the related Prepayment Period and (3) the portion of any
purchase price or other amount paid with respect to the Mortgage Loans allocable to interest; net of any fees or other amounts reimbursable to the Master Servicer, the Servicer, the Securities Administrator, the Indenture Trustee, the Administrator,
the Custodian and the Owner Trustee as provided in the Agreements. 
  
 Issuer: HomeBanc Mortgage Trust 2005-1. 
  
 Lender Paid Mortgage Insurance Rate: The Lender Paid Mortgage Insurance Rate shall be a rate per annum equal to the percentage shown on the Mortgage Loan Schedule. 
  
 Lender Primary Mortgage Insurance Policy: Any Primary Mortgage Insurance Policy for which premiums are paid by the
Servicer. 
  
 LIBOR: (a) With respect to the first
Accrual Period, the per annum rate of 2.599380%. With respect to each subsequent Accrual Period, a per annum rate determined on the LIBOR Determination Date in the following manner by the Securities Administrator on the basis of the “Interest
Settlement Rate” set by the British Bankers’ Association (the “BBA”) for one-month United States dollar deposits, as such rates appear on the Telerate Page 3750, as of 11:00 a.m. (London time) on such LIBOR Determination Date.

  

 16 

 (b) If on such a LIBOR Determination Date, the BBA’s Interest Settlement Rate does not appear on the
Telerate Page 3750 as of 11:00 a.m. (London time), or if the Telerate Page 3750 is not available on such date, the Securities Administrator will determine such rate on the basis of the offered rates of the Reference Banks for one-month United States
dollar deposits, as such rates appear on the Reuters Screen LIBO Page, as of 11:00 a.m. (London time) on such LIBOR Determination Date. 
  
 (c) If LIBOR is determined under clause (b) above, on each LIBOR Determination Date, LIBOR for the related Accrual Period for the Notes will be
established by the Securities Administrator as follows: 
  
 (1) If on such LIBOR Determination Date two or more Reference Banks provide such offered quotations, LIBOR for the related Accrual Period for the Notes shall be the arithmetic mean of such offered quotations (rounded
upwards if necessary to the nearest whole multiple of 0.03125%). 
  
 (2) If on such LIBOR Determination Date fewer than two Reference Banks provide such offered quotations, LIBOR for the related Accrual Period shall be the higher of (x) LIBOR as determined on the previous LIBOR
Determination Date and (y) the Reserve Interest Rate. 
  
 (d) The
establishment of LIBOR by the Securities Administrator and the Securities Administrator’s subsequent calculation of the Note Interest Rate applicable to the Notes for the relevant Accrual Period, in the absence of manifest error, will be final
and binding. 
  
 LIBOR Business Day: Any day on which banks
in London and New York are open and conducting transactions in foreign currency and exchange. 
  
 LIBOR Determination Date: The second LIBOR Business Day immediately preceding the commencement of each Accrual Period. 
  
 Liquidated Mortgage Loan: Any defaulted Mortgage Loan as to which the Servicer has determined that all amounts that it expects to recover from or
on account of such Mortgage Loan have been recovered. 
  
 Liquidation Expenses: Expenses that are incurred by the Master Servicer or the Servicer, as applicable, in connection with the liquidation of any defaulted Mortgage Loan and are not recoverable under the applicable primary mortgage
insurance policy, if any, including, without limitation, foreclosure and rehabilitation expenses, legal expenses and unreimbursed amounts, if any, expended pursuant to Sections 4.02(c), 4.02(j) or 4.02(o). 
  
 Liquidation Proceeds: Cash received in connection with the liquidation
of a defaulted Mortgage Loan, whether through the sale or assignment of such Mortgage Loan, trustee’s sale, foreclosure sale, payment in full, discounted payoff or otherwise, or the sale of the related REO Property, if the Mortgaged Property is
acquired in satisfaction of the Mortgage Loan. 
  

 17 

 Loan-to-Value Ratio: With respect to a Mortgage Loan, at any time, the ratio, expressed as a
percentage, of the principal balance of such Mortgage Loan as of the applicable date of determination, to (a) in the case of a purchase, the lesser of the sale price of the Mortgaged Property and its appraised value at the time of sale or (b) in the
case of a refinancing or modification, the appraised value of the Mortgaged Property at the time of the refinancing or modification. 
  
 M-1 Principal Deficiency Amount: With respect to any Payment Date, the lesser of (a) the excess, if any, of (1) the Total Principal Deficiency
Amount over (2) the sum of (i) the M-2 Principal Deficiency Amount, (ii) the M-3 Principal Deficiency Amount, (iii) the M-4 Principal Deficiency Amount, (iv) the M-5 Principal Deficiency Amount, (v) the M-6 Principal Deficiency Amount, (vi) the B-1
Principal Deficiency Amount and (vii) the B-2 Principal Deficiency Amount, in each case for that Payment Date and (b) the Class Principal Amount of the Class M-1 Notes immediately prior to such Payment Date. 
  
 M-2 Principal Deficiency Amount: With respect to any Payment Date, the
lesser of (a) the excess, if any, of (1) the Total Principal Deficiency Amount over (2) the sum of (i) the M-3 Principal Deficiency Amount, (ii) the M-4 Principal Deficiency Amount, (iii) the M-5 Principal Deficiency Amount, (iv) the M-6 Principal
Deficiency Amount, (v) the B-1 Principal Deficiency Amount and (vi) the B-2 Principal Deficiency Amount, in each case for that Payment Date and (b) the Class Principal Amount of the Class M-2 Notes immediately prior to such Payment Date. 

 
 M-3 Principal Deficiency Amount: With respect to any Payment Date,
the lesser of (a) the excess, if any, of (1) the Total Principal Deficiency Amount over (2) the sum of (i) the M-4 Principal Deficiency Amount, (ii) the M-5 Principal Deficiency Amount, (iii) the M-6 Principal Deficiency Amount, (iv) the B-1
Principal Deficiency Amount and (v) the B-2 Principal Deficiency Amount, in each case for that Payment Date and (b) the Class Principal Amount of the Class M-3 Notes immediately prior to such Payment Date. 
  
 M-4 Principal Deficiency Amount: With respect to any Payment Date, the
lesser of (a) the excess, if any, of (1) the Total Principal Deficiency Amount over (2) the sum of (i) the M-5 Principal Deficiency Amount, (ii) the M-6 Principal Deficiency Amount, (iii) the B-1 Principal Deficiency Amount and (iv) the B-2
Principal Deficiency Amount, in each case for that Payment Date and (b) the Class Principal Amount of the Class M-4 Notes immediately prior to such Payment Date. 
  
 M-5 Principal Deficiency Amount: With respect to any Payment Date, the lesser of (a) the excess, if any, of (1) the
Total Principal Deficiency Amount over (2) the sum of (i) the M-6 Principal Deficiency Amount, (ii) the B-1 Principal Deficiency Amount and (iii) the B-2 Principal Deficiency Amount, in each case for that Payment Date and (b) the Class Principal
Amount of the Class M-5 Notes immediately prior to such Payment Date. 
  
 M-6 Principal Deficiency Amount: With respect to any Payment Date, the lesser of (a) the excess, if any, of (1) the Total Principal Deficiency Amount over (2) the sum of (i) the B-1 

  

 18 

 
Principal Deficiency Amount and (ii) the B-2 Principal Deficiency Amount, in each case for that Payment Date and (b) the Class Principal Amount of the Class
M-6 Notes immediately prior to such Payment Date. 
  
 Majority Noteholders: Until such time as the sum of the Class Principal Amounts of all Classes of Notes has been reduced to zero, the holder or holders of in excess of 50% of the aggregate Class Principal Amount of all Classes of
Notes; and thereafter, the holder of the Ownership Certificate. 
  
 Margin: With respect to each adjustable rate Mortgage Loan, the fixed percentage amount set forth in each related Mortgage Note which is added to the Index in order to determine the related Mortgage Rate, as set forth in the Mortgage
Loan Schedule. 
  
 Master Servicer: Wells Fargo Bank, N.A.,
or any successor in interest, or if any successor master servicer shall be appointed as herein provided, then such successor master servicer. 
  
 Master Servicer Errors and Omission Insurance Policy: Any errors and omission insurance policy required to be obtained by the Master Servicer
satisfying the requirements of Section 5.02. 
  
 Master
Servicer Event of Default: Any one of the conditions or circumstances enumerated in Section 8.01(a). 
  
 Master Servicer Fidelity Bond: Any fidelity bond to be maintained by the Servicer in accordance with Section 5.02. 
  
 Master Servicer Remittance Date: With respect to each Payment Date,
the Business Day immediately preceding such Payment Date. 
  
 Material Defect: With respect to any Mortgage Loan, as defined in Section 2.02(c) hereof. 
  
 Maturity Date: The Payment Date in March 2035. 
  
 Maximum Mortgage Rate: The maximum level to which a Mortgage Rate can adjust in accordance with its terms, regardless of changes in the applicable
Index. 
  
 Maximum Note Interest Rate: 11.50% per annum.

  
 MERS: Mortgage Electronic Registration Systems, Inc., a
Delaware corporation, or any successor in interest thereto. 
  

 19 

 MERS Mortgage Loan: Any Mortgage Loan as to which the related Mortgage, or an Assignment of
Mortgage, has been or will be recorded in the name of MERS, as nominee for the holder from time to time of the Mortgage Note. 
  
 MIN: The Mortgage Identification Number for Mortgage Loans registered with MERS on the MERS® System. 
  
 Minimum Mortgage Rate: The minimum level to which a Mortgage Rate can adjust in accordance with its terms, regardless
of changes in the applicable Index. 
  
 Monthly Advance: An
advance made by the Servicer pursuant to Section 4.03(c) or the Master Servicer pursuant to Section 6.04, as applicable, with respect to delinquent payments of principal and interest on the Mortgage Loans, adjusted to the related Net Mortgage Rate.

  
 Monthly Excess Cashflow: With respect to any Payment
Date, the excess of (1) the Interest Funds for such Payment Date over (2) the aggregate amount of Accrued Note Interest for the Notes for such Payment Date. 
  
 Monthly Payment: With respect to any Mortgage Loan and any month, the scheduled payment or payments of principal and interest due during such month
on such mortgage loan, which either is payable by a mortgagor in such month under the related mortgage note, or in the case of any Mortgaged Property acquired through foreclosure or deed-in-lieu of foreclosure, would otherwise have been payable
under the related Mortgage Note. 
  
 Moody’s:
Moody’s Investors Service, Inc., or any successor in interest. 
  
 Mortgage: A mortgage, deed of trust or other instrument encumbering a fee simple interest in real property securing a Mortgage Note. 
  
 Mortgage File: The mortgage documents listed in Section 2.01(b) pertaining to a particular Mortgage Loan required to be delivered to the Indenture
Trustee (or the Custodian) pursuant to this Agreement. 
  
 Mortgage Loan: The conventional, adjustable rate, first lien residential mortgage loans sold by the Seller to the Depositor pursuant to the Mortgage Loan Purchase Agreement and subsequently transferred by the Depositor to the Issuer
pursuant to this Agreement. 
  
 Mortgage Loan Purchase
Agreement: The mortgage loan purchase agreement dated as of February 1, 2005, between the Seller and the Depositor. 
  
 Mortgage Loan Schedule: The schedule attached hereto as Schedule A, which shall identify each Mortgage Loan, as such schedule may be amended from
time to time to reflect the addition of Mortgage Loans to, or the deletion of Mortgage Loans from, the Trust. The Depositor shall be responsible for providing the Master Servicer and the Custodian on behalf of the Indenture Trustee with all
amendments to the Mortgage Loan Schedule. 
  

 20 

 Mortgage Note: The original executed note or other evidence of the indebtedness of a Mortgagor
secured under the Mortgage Loan. 
  
 Mortgage Pool: The
pool of Mortgage Loans in the Trust Estate. 
  
 Mortgaged
Property: With respect to any Mortgage Loan, the underlying real property securing such Mortgage Loan. 
  
 Mortgage Rate: With respect to any Mortgage Loan, its applicable interest rate determined as provided in the related mortgage note, as reduced by
any Relief Act Reduction. 
  
 Mortgagor: The obligor on a
Mortgage Note. 
  
 Net Liquidation Proceeds: All amounts,
net of (1) unreimbursed expenses and (2) unreimbursed Monthly Advances and Servicing Advances, received and retained in connection with the liquidation of defaulted Mortgage Loans, through Insurance Proceeds or Condemnation Proceeds, by foreclosure
or otherwise, together with any net proceeds received on a monthly basis with respect to any Mortgaged Properties acquired by foreclosure or deed in lieu of foreclosure. 
  
 Net Mortgage Rate: With respect to any Mortgage Loan at any time, the Mortgage Rate thereof reduced by the Servicing
Fee Rate for such Mortgage Loan and any Lender Paid Mortgage Insurance Rate. 
  
 New York UCC: The Uniform Commercial Code as in effect in the State of New York. 
  
 Non-Conforming Balance Mortgage Loan: Any Mortgage Loan other than a Conforming Balance Mortgage Loan. 
  
 Non-MERS Mortgage Loan: Any Mortgage Loan other than a MERS Mortgage
Loan. 
  
 Nonrecoverable Advance: Any advance previously
made by the Servicer pursuant to Section 4.03(c) or by the Master Servicer pursuant to Section 6.04 or any Servicing Advance which, in the good faith judgment of the Servicer or the Master Servicer, as applicable, may not be ultimately recoverable
by the Servicer or the Master Servicer from Liquidation Proceeds, Insurance Proceeds, Condemnation Proceeds or otherwise. The determination by the Servicer or the Master Servicer, as applicable, that it has made a Nonrecoverable Advance, shall be
evidenced by an Officer’s Certificate of the Servicer or the Master Servicer, as applicable, delivered to the Indenture Trustee and the Master Servicer (in the case of the Servicer) and detailing the reasons for such determination 

 
 Note: Any of the Class A-1, Class A-2, Class M-1, Class M-2, Class
M-3, Class M-4, Class M-5, Class M-6, Class B-1 and Class B-2 Notes. 
  

 21 

 Note Interest Rate: With respect to each Payment Date and each Class of Notes, an adjustable rate
equal to the least of (1) One-Month LIBOR plus the related Note Margin, (2) the Maximum Note Interest Rate and (3) the Available Funds Rate with respect to such Payment Date. 
  
 Note Margin: With respect to the Class A-1 Notes, on any Payment Date prior to the Step-up Date, 0.250% per annum,
and on any Payment Date on and after the Step-up Date, 0.500% per annum. With respect to the Class A-2 Notes, on any Payment Date prior to the Step-up Date, 0.310% per annum, and on any Payment Date on and after the Step-up Date, 0.620% per annum.
With respect to the Class M-1 Notes, on any Payment Date prior to the Step-up Date, 0.460% per annum, and on any Payment Date on and after the Step-up Date, 0.690% per annum. With respect to the Class M-2 Notes, on any Payment Date prior to the
Step-up Date, 0.490% per annum, and on any Payment Date on and after the Step-up Date, 0.735% per annum. With respect to the Class M-3 Notes, on any Payment Date prior to the Step-up Date, 0.520% per annum, and on any Payment Date on and after the
Step-up Date, 0.780% per annum. With respect to the Class M-4 Notes, on any Payment Date prior to the Step-up Date, 0.700% per annum, and on any Payment Date on and after the Step-up Date, 1.050% per annum. With respect to the Class M-5 Notes, on
any Payment Date prior to the Step-up Date, 0.750% per annum, and on any Payment Date on and after the Step-up Date, 1.125% per annum. With respect to the Class M-6 Notes, on any Payment Date prior to the Step-up Date, 0.800% per annum, and on any
Payment Date on and after the Step-up Date, 1.200% per annum. With respect to the Class B-1 Notes, on any Payment Date prior to the Step-up Date, 1.250% per annum, and on any Payment Date on and after the Step-up Date, 1.875% per annum. With respect
to the Class B-2 Notes, on any Payment Date prior to the Step-up Date, 1.300% per annum, and on any Payment Date on and after the Step-up Date, 1.950% per annum. 
  
 Note Payment Account: The note payment account maintained by or on behalf of the Indenture Trustee for the benefit of
the Noteholders pursuant to Section 6.01. 
  
 Note Register
and Note Registrar: As defined in the Indenture. 
  
 Offering Document: The Prospectus. 
  
 Officer’s Certificate: A certificate signed by the Chairman of the Board, any Vice Chairman, the President, any Executive Vice President, any Senior Vice President, any Vice President or any Assistant Vice President of a Person.

  
 One-Month LIBOR or One-Month LIBOR Index: The Interest
Settlement Rate for U.S. dollar deposits of one-month maturity set by the BBA as of 11:00 a.m. (London time) on the LIBOR Determination Date. 
  
 Operative Agreements: The Trust Agreement, the Certificate of Trust of the Issuer, this Agreement, the Mortgage Loan Purchase Agreement, the
Indenture, the Custodial Agreement, the Depository Agreement, any Cap Agreement and each other document contemplated by any 

  

 22 

 
of the foregoing to which the Depositor, the Seller, the Master Servicer, the Servicer, the Owner Trustee, the Securities Administrator, the Indenture
Trustee, the Custodian or the Issuer is a party. 
  
 Opinion of
Counsel: A written opinion of counsel, reasonably acceptable in form and substance to the Seller, the Securities Administrator, the Indenture Trustee and/or the Master Servicer, as applicable, and who may be in-house or outside counsel to the
Seller, the Servicer, the Depositor, the Master Servicer, the Securities Administrator or the Indenture Trustee but which must be Independent outside counsel with respect to any such opinion of counsel concerning federal income tax or ERISA matters.

  
 Overcollateralized Amount: With respect to any Payment
Date, the amount, if any, by which (1) the aggregate Scheduled Principal Balance of the Mortgage Loans exceeds (2) the aggregate Class Principal Amount of the Notes as of such Payment Date (assuming that 100% of Principal Funds is applied as a
principal payment on the Notes on such Payment Date). 
  
 Overcollateralization Deficiency: With respect to any Payment Date, the amount, if any, by which (1) the Overcollateralization Target Amount for such Payment Date exceeds (2) the Overcollateralized Amount for such Payment Date,
calculated for this purpose after giving effect to the reduction on such Payment Date of the Class Principal Amounts of the Notes resulting from the payment of Principal Funds on such Payment Date. 
  
 Overcollateralization Target Amount: With respect to any Payment Date,
0.35% of the Cut-off Date Balance. 
  
 Ownership
Certificate: An equity certificate representing a 100% undivided beneficial ownership interest in the Trust, substantially in the form attached as part of Exhibit A to the Trust Agreement. 
  
 Owner Trustee: Wilmington Trust Company, a Delaware banking
corporation, and any successor in interest, not in its individual capacity, but solely as owner trustee under the Trust Agreement. 
  
 Owner Trustee Fee: The annual fee payable by the Master Servicer on behalf of the Trust to the Owner Trustee from income on funds held in the
Collection Account as provided in Section 5.07 and pursuant to the terms of a separate fee letter agreement. 
  
 Payahead: Any Monthly Payment intended by the related borrower to be applied in a Collection Period subsequent to the Collection Period in which
such payment was received. 
  
 Payment Date: The 25th day
of each month or, if such 25th day is not a Business Day, the next succeeding Business Day, commencing in March 2005. 
  
 Percentage Interest: The Percentage Interest evidenced thereby shall equal (i) with respect to the Ownership Certificate, the Percentage Interest
specified on the face of such certificate; or (ii) with respect to any Note, the initial Note Principal Amount thereof divided by the initial Class Principal Amount of all Notes of the same Class. 
  

 23 

 Periodic Cap: With respect to each Mortgage Loan, the maximum adjustment that can be made to the
Mortgage Rate on each Adjustment Date in accordance with its terms, regardless of changes in the applicable Index. 
  
 Person: Any individual, corporation, partnership, joint venture, association, joint-stock company, limited liability company, trust, unincorporated
organization or government or any agency or political subdivision thereof. 
  
 Pool Balance: As of any date of determination, the aggregate of the Scheduled Principal Balances of the Mortgage Loans in the Mortgage Pool as of such date. 
  
 Prepayment Interest Shortfall: The amount by which one month’s
interest at the Mortgage Rate (as reduced by the Servicing Fee Rate) on a Mortgage Loan as to which a voluntary prepayment has been made exceeds the amount of interest actually received in connection with such prepayment. 
  
 Prepayment Period: With respect to any Payment Date, the immediately
preceding calendar month. 
  
 Primary Mortgage Insurance
Policy: Any primary mortgage guaranty insurance policy issued in connection with a Mortgage Loan which provides compensation to a Mortgage Note holder in the event of default by the obligor under such Mortgage Note or the related Mortgage, or
any replacement policy therefor through the related Accrual Period for such Class relating to a Payment Date. 
  
 Prime Rate: The prime rate of the United States money center commercial banks as published in The Wall Street Journal, Northeast Edition.

  
 Principal Deficiency Amount: With respect to the Class
A-1 Notes, the A-1 Principal Deficiency Amount; with respect to the Class A-2 Notes, the A-2 Principal Deficiency Amount; with respect to the Class M-1 Notes, the M-1 Principal Deficiency Amount; with respect to the Class M-2 Notes, the M-2
Principal Deficiency Amount; with respect to the Class M-3 Notes, the M-3 Principal Deficiency Amount; with respect to the Class M-4 Notes, the M-4 Principal Deficiency Amount; with respect to the Class M-5 Notes, the M-5 Principal Deficiency
Amount; with respect to the Class M-6 Notes, the M-6 Principal Deficiency Amount; with respect to the Class B-1 Notes, the B-1 Principal Deficiency Amount; and with respect to the Class B-2 Notes, the B-2 Principal Deficiency Amount.

  
 Principal Funds: With respect to any Payment Date, the
sum of (1) the principal portion of all scheduled monthly payments on the related Mortgage Loans due on the related Due Date, to the extent received or advanced; (2) the principal portion of all proceeds of the repurchase of a Mortgage Loan (or, in
the case of a substitution, certain amounts representing a principal 

  

 24 

 
adjustment) as required by the Mortgage Loan Purchase Agreement during the preceding calendar month; (3) the principal portion of all other unscheduled
collections received during the preceding calendar month in respect of the related mortgage loans, including full and partial prepayments, the proceeds of any purchase of Mortgage Loans by the Seller, the Servicer or the Residual Holder, Liquidation
Proceeds, Condemnation Proceeds and Insurance Proceeds; net of any fees payable to, and other amounts reimbursable to, the Master Servicer, the Servicer, the Securities Administrator, the Indenture Trustee, the Administrator, the Custodian and the
Owner Trustee as provided in the Agreements (to the extent not reimbursed from Interest Funds). 
  
 Principal Prepayment: Any payment or other recovery of principal on a Mortgage Loan which is received in advance of its scheduled Due Date to the
extent that it is not accompanied by an amount as to interest representing scheduled interest due on any date or dates in any month or months subsequent to the month of prepayment, including Insurance Proceeds and Repurchase Proceeds, but excluding
the principal portion of Net Liquidation Proceeds received at the time a mortgage loan becomes a Liquidated Mortgage Loan. 
  
 Proceeding: Any suit in equity, action at law or other judicial or administrative proceeding. 
  
 Prospectus: The prospectus supplement dated February 16, 2005,
together with the accompanying prospectus dated February 16, 2005, relating to the Class A-1, Class A-2, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1 and Class B-2 Notes. 
  
 Purchase Price: With respect to the purchase of a Mortgage Loan or
related REO Property pursuant to this Agreement, an amount equal to the sum of (a) 100% of the unpaid principal balance of such Mortgage Loan, (b) accrued interest thereon at the applicable Mortgage Rate, from the date as to which interest was last
paid to (but not including) the Due Date in the Collection Period immediately preceding the related Payment Date, (c) the amount of any costs and damages incurred by the Trust in connection with any violation of any applicable federal, state or
local predatory or abusive lending law in connection with the origination of such Mortgage Loan and (d) the fair market value of all other property being purchased. The Servicer and the Master Servicer shall be reimbursed from the Purchase Price for
any Mortgage Loan or related REO Property for any Monthly Advances and Servicing Advances made or other amounts advanced with respect to such Mortgage Loan that are reimbursable to the Servicer or the Master Servicer under this Agreement, together
with any accrued and unpaid compensation due to the Servicer or the Master Servicer hereunder. 
  
 Qualified GIC: A guaranteed investment contract or surety bond providing for the investment of funds in the Collection Account and insuring a minimum, fixed or floating rate of return on investments of such
funds, which contract or surety bond shall: 
  
 (i) be an obligation of an insurance company or other corporation whose long-term debt is rated by each Rating Agency in one of its two highest rating categories or, if such insurance company has no long-term debt, whose claims paying
ability is rated by each Rating Agency in one of its two highest rating categories, and whose short-term debt is rated by each Rating Agency in its highest rating category; 
  

 25 

 (ii) provide that the Master Servicer on behalf of the Indenture Trustee may exercise all
of the rights under such contract or surety bond without the necessity of taking any action by any other Person; 
  
 (iii) provide that if at any time the then current credit standing of the obligor under such guaranteed investment contract is such that
continued investment pursuant to such contract of funds would result in a downgrading of any rating of the Notes, the Securities Administrator shall terminate such contract without penalty and be entitled to the return of all funds previously
invested thereunder, together with accrued interest thereon at the interest rate provided under such contract to the date of delivery of such funds to the Securities Administrator; 
  
 (iv) provide that the Indenture Trustee’s interest therein shall be transferable to any successor
trustee hereunder; and 
  
 (v) provide that the
funds reinvested thereunder and accrued interest thereon be returnable to the Collection Account not later than the Business Day prior to any Payment Date. 
  
 Qualified Insurer: An insurance company duly qualified as such under the laws of the states in which the related Mortgaged Properties are located,
duly authorized and licensed in such states to transact the applicable insurance business and to write the insurance provided and whose claims paying ability is rated by each Rating Agency in its highest rating category or whose selection as an
insurer will not adversely affect the rating of the Notes. 
  
 Qualifying Substitute Mortgage Loan: A mortgage loan tendered to the Indenture Trustee or the Custodian pursuant to the Mortgage Loan Purchase Agreement or this Agreement, as applicable, in each case, (i) which has an outstanding
principal balance not greater nor materially less than the Mortgage Loan for which it is to be substituted; (ii) which has a Mortgage Rate and Net Mortgage Rate not less than, and not materially greater than, such Mortgage Loan; (iii) which has a
maturity date not materially earlier or later than such Mortgage Loan and not later than the latest maturity date of any Mortgage Loan; (iv) which is of the same property type and occupancy type as such Mortgage Loan; (v) which has a Loan-to-Value
Ratio not greater than the Loan-to-Value Ratio of such Mortgage Loan; (vi) which is current in payment of principal and interest as of the date of substitution; (vii) as to which the payment terms do not vary in any material respect from the payment
terms of the Mortgage Loan for which it is to be substituted and (viii) which has a Gross Margin and Maximum Mortgage Rate no less than those of such Mortgage Loan, has the same Index and interval between Adjustment Dates as such Mortgage Loan, and
a Minimum Lifetime Mortgage Rate no lower than that of such Mortgage Loan. 
  

 26 

 Rating Agency: Each of Moody’s and S&P. 
  
 Realized Loss: With respect to a Mortgage Loan is (1) a Bankruptcy
Loss or (2) as to any Liquidated Mortgage Loan, the unpaid principal balance thereof plus accrued and unpaid interest thereon at the related Mortgage Rate through the last day of the month of liquidation less the Net Liquidation Proceeds with
respect to such Mortgage Loan and the related Mortgaged Property. 
  
 Reference Banks: Leading banks selected by the Securities Administrator and engaged in transactions in Eurodollar deposits in the international Eurocurrency market (1) with an established place of business in London, (2) whose
quotations appear on the Reuters Screen LIBO Page on the Determination Date in question, (3) which have been designated as such by the Securities Administrator and (4) not controlling, controlled by, or under common control with, the Depositor, the
Indenture Trustee, the Securities Administrator, the Master Servicer, the Servicer, the Seller or any successor servicer. 
  
 REIT: A real estate investment trust within the meaning of section 856 of the Code. 
  
 Relevant UCC: The Uniform Commercial Code as in effect in the applicable jurisdiction. 
  
 Relief Act Reduction: With respect to a Mortgage Loan, a reduction of
the applicable Mortgage Rate by application of the Servicemembers Civil Relief Act or similar state or local laws. 
  
 REO Property: A Mortgaged Property acquired by the Servicer through foreclosure or deed-in-lieu of foreclosure in connection with a defaulted
Mortgage Loan. 
  
 Repurchase Proceeds: The purchase price
proceeds in connection with any repurchase of a Mortgage Loan by the Seller and any cash deposit in connection with the substitution of a Mortgage Loan. 
  
 Request for Release: A request for release in the form attached hereto as Exhibit A-5. 
  
 Residual Holder: The holder of the Ownership Certificate. 

 
 Responsible Officer: Any vice president, any assistant vice
president, any assistant secretary, any associate, any assistant treasurer, or any other officer of the Indenture Trustee or the Securities Administrator, as applicable, customarily performing functions similar to those performed by any of the
above-designated officers and, in each case, having direct responsibility for the administration of the Operative Agreements and also, with respect to a particular matter, any other officer to whom such matter is referred because of such
officer’s knowledge of and familiarity with the particular subject. 
  

 27 

 Reuters Screen LIBO Page: The display designated as page “LIBO” on the Reuters Monitor
Money Rates Service (or such other page as may replace the LIBO page on that service for the purpose of displaying London interbank offered rates of major banks). 
  
 S&P: Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., or any successor
in interest. 
  
 Scheduled Principal Balance: With respect
to any Mortgage Loan and any Payment Date (1) the unpaid principal balance of such mortgage loan as of the close of business on the related Due Date (giving effect to the principal payment to be made on such Due Date and irrespective of any
delinquency in its payment), as specified in the amortization schedule at the time relating thereto (before any adjustment to such amortization schedule by reason of any bankruptcy or similar proceeding occurring after the Cut-off Date (other than a
Deficient Valuation) or any moratorium or similar waiver or grace period) less (2) any Principal Prepayments and the principal portion of any Net Liquidation Proceeds received during or prior to the immediately preceding Prepayment Period;
provided that the Scheduled Principal Balance of any Liquidated Mortgage Loan is zero. 
  
 Securities Administrator: Wells Fargo Bank, N.A., not in its individual capacity but solely as Securities Administrator, or any successor in interest. 
  
 Securities Intermediary: The Person acting as Securities Intermediary
under this Agreement (which is U.S. Bank National Association), its successor in interest, and any successor Securities Intermediary appointed pursuant to Section 6.04. 
  
 Security Entitlement: The meaning specified in Section 8-102(a)(17) of the New York UCC. 
  
 Seller: HomeBanc Corp. 
  
 Senior Notes: The Class A-1 and Class A-2 Notes. 
  
 Servicer: HomeBanc Corp., or its successor in interest or assigns or
any successor to the Servicer under this Agreement as herein provided. 
  
 Servicer Errors and Omission Insurance Policy: Any errors and omission insurance policy required to be obtained by the Servicer satisfying the requirements of Section 4.02(l). 
  
 Servicer Event of Default: Any one of the conditions or circumstances
enumerated in Section 4.07 with respect to the Servicer. 
  
 Servicer Fidelity Bond: Any fidelity bond to be maintained by the Servicer in accordance with Section 4.02(l). 
  

 28 

 Servicer Remittance Date: The 18th day of any month, or if such 18th day is not a Business Day,
the first Business Day immediately preceding such 18th day. 
  
 Servicing Advances: All reasonable and customary “out-of-pocket” costs and expenses, including costs and expenses of foreclosures (including reasonable attorneys’ fees and disbursements) incurred in the performance by
the Servicer of its servicing obligations, including, but not limited to, the cost of (1) the preservation, restoration, inspection and protection of the Mortgaged Properties, (2) any enforcement or judicial proceedings and (3) the management and
liquidation of Mortgaged Properties acquired in satisfaction of the related mortgage. 
  
 Servicing Fee: The monthly fee calculated at the Servicing Fee Rate on the outstanding principal balance of each Mortgage Loan. 
  
 Servicing Fee Rate: For each Non-Conforming Balance Mortgage Loan, 0.25% per annum; for each Conforming Balance
Mortgage Loan with a Mortgage Rate that adjusts every one month or six months from origination, 0.375% per annum; and for each Conforming Balance Mortgage Loan with an initial fixed rate period of three, five or seven years, 0.25% per annum until
the first Adjustment Date and thereafter 0.375% per annum. 
  
 Servicing File: With respect to each Mortgage Loan, the file retained by the Servicer, which may be in electronic media so long as original documents are not required for purposes of realization of Liquidation Proceeds, Condemnation
Proceeds or Insurance Proceeds, consisting of all documents in the Mortgage File which are not delivered to the Custodian, the originals of such mortgage loan documents which are held in trust for the Indenture Trustee by the Servicer. 

 
 Servicing Officer: Any officer of the Servicer involved in or
responsible for, the administration and servicing of the Mortgage Loans whose name appears on a list of servicing officers furnished by the Servicer to the Master Servicer upon request, as such list may from time to time be amended. 
  
 Six-Month LIBOR Index: The interbank offered rates for six-month
United States dollar deposits in the London market, calculated as provided in the related mortgage note. 
  
 Step-up Date: The first Payment Date after the Initial Purchase Date. 
  
 Subordinate Notes: The Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1 and Class B-2
Notes. 
  
 Subservicing Agreement: The subservicing
agreement dated as of February 1, 2005, between the Servicer and HomeBanc Mortgage Corporation. 
  
 Substitution Amount: The amount, if any, by which the Scheduled Principal Balance of a Deleted Mortgage Loan exceeds the Scheduled Principal
Balance of the related Qualifying Substitute Mortgage Loan, or aggregate Scheduled Principal Balance, if applicable, plus unpaid 

  

 29 

 
interest thereon, any related unpaid Monthly Advances or Servicing Advances or unpaid Servicing Fees and the amount of any costs and damages incurred by the
Trust Estate associated with a violation of any applicable federal, state or local predatory or abusive lending law in connection with the origination of such Deleted Mortgage Loan. 
  
 Telerate Page 3750: The display currently so designated as “Page 3750” on the Moneyline Telerate Service
(or such other page selected by the Master Servicer as may replace Page 3750 on that service for the purpose of displaying daily comparable rates on prices). 
  
 Termination Price: The sum, as calculated by the Servicer, of (a) 100% of the aggregate outstanding principal balance of the Mortgage Loans, plus
accrued interest thereon at the applicable Mortgage Rate, (b) the fair market value of the REO Property and all other property being purchased, (c) any unreimbursed Servicing Advances, (d) any Basis Risk Shortfalls and (e) all other amounts to be
paid or reimbursed to the Master Servicer, the Securities Administrator, the Indenture Trustee, the Owner Trustee and the Custodian. 
  
 Title Insurance Policy: A title insurance policy maintained with respect to a Mortgage Loan. 
  
 Total Principal Deficiency Amount: With respect to any Payment Date,
the excess, if any, of the aggregate Class Principal Amount of the Notes after giving effect to payments on such Payment Date over the Pool Balance as of the last day of the related Collection Period. 
  
 Trust: The Issuer. 
  
 Trust Accounts: The Collection Account and the Note Payment Account.

  
 Trust Account Property: The Trust Accounts, all amounts
and investments held from time to time in the Trust Accounts (whether in the form of deposit accounts, physical property, book-entry securities, uncertificated securities, securities entitlements, investment property or otherwise) and all proceeds
of the foregoing. 
  
 Trust Agreement: The trust agreement
dated as of February 1, 2005, among the Owner Trustee, the Depositor and the Administrator. 
  
 Trust Estate: The assets of the Issuer and pledged by the Issuer to the Indenture Trustee under the Indenture, which assets consist of all accounts, accounts receivable, contract rights, general intangibles,
chattel paper, instruments, documents, money, deposit accounts, certificates of deposit, goods, notes, drafts, letters of credit, advices of credit, investment property, uncertificated securities claims and rights to payment of any and every kind
consisting of, arising from or relating to any of the following: (a) the Mortgage Loans listed in the Mortgage Loan Schedule, and principal due and payable after the Cut-off Date, but not including interest and principal due and payable on any
Mortgage Loans on or before the Cut-off Date, together with the Mortgage Files relating to such Mortgage Loans; (b) any Insurance Proceeds, REO Property, Liquidation Proceeds and other recoveries (in each case, subject to clause (a) above), (c) the

  

 30 

 
Trust Accounts, any Custodial Account, any Escrow Account, the Cap Account and all amounts deposited therein pursuant to the applicable provisions of this
Agreement, (d) any Insurance Policies, (e) the rights of the Depositor under the Mortgage Loan Purchase Agreement, (f) the rights of the Trust under each Cap Agreement, and (g) all income, revenues, issues, products, revisions, substitutions,
replacements, profits, rents and all cash and non-cash proceeds of the foregoing. 
  
 UCC: The Uniform Commercial Code as enacted in the relevant jurisdiction. 
  
 Underwriters: Bear, Stearns & Co. Inc. and J.P. Morgan Securities Inc. 
  
 Section 1.02. Calculations With Respect to the Mortgage Loans. Calculations required to be made pursuant to this
Agreement with respect to any Mortgage Loan in the Trust Estate shall be made based upon current information as to the terms of the Mortgage Loans and reports of payments received from the Mortgagor on such Mortgage Loans provided by the Servicer to
the Master Servicer. Payments to be made by the Indenture Trustee shall be based on information provided by the Securities Administrator. The Indenture Trustee shall not be required to recompute, verify or recalculate the information supplied to it
by the Securities Administrator or the Servicer. 
  
 Section 1.03.
Calculations With Respect to Accrued Interest. Accrued interest, if any, on any Note shall be calculated based upon a 360-day year and the actual number of days in each Accrual Period. 
  
 ARTICLE II 
  
 CONVEYANCE OF MORTGAGE LOANS 
  
 Section 2.01. Creation and Declaration of Trust Estate; Conveyance of Mortgage Loans. 
  
 (a) Mortgage Loans. As of the Closing Date, in consideration of the
Issuer’s delivery of the Notes and the Ownership Certificate to the Depositor or its designee, and concurrently with the execution and delivery of this Agreement, the Depositor does hereby transfer, assign, set over, deposit with and otherwise
convey to the Issuer, without recourse, subject to Section 3.01, in trust, all the right, title and interest of the Depositor in and to all accounts, accounts receivable, contract rights, general intangibles, chattel paper, instruments, documents,
money, deposit accounts, certificates of deposit, goods, notes, drafts, letters of credit, advices of credit, investment property, uncertificated securities claims and rights to payment of any and every kind consisting of, arising from or relating
to any of the following: (a) the Mortgage Loans listed in the Mortgage Loan Schedule, and principal due and payable after the Cut-off Date, but not including interest and principal due and payable on any Mortgage Loans on or before the Cut-off Date,
together with the Mortgage Files relating to such Mortgage Loans, (b) any Insurance Proceeds, REO Property, Liquidation Proceeds and other recoveries (in each case, subject to clause (a) above), (c) all Escrow Payments, (d) any Insurance Policies,
(e) the rights of the 

  

 31 

 
Depositor under the Mortgage Loan Purchase Agreement, (f) the Depositor’s security interest in any collateral pledged to secure the Mortgage Loans,
including the Mortgaged Properties, and (g) all income, revenues, issues, products, revisions, substitutions, replacements, profits, rents and all cash and non-cash proceeds of the foregoing to have and to hold, in trust; and the Indenture Trustee
declares that, subject to the review provided for in Section 2.02, it has received and shall hold the Trust Estate, as Indenture Trustee, in trust, for the benefit and use of the Noteholders and for the purposes and subject to the terms and
conditions set forth in this Agreement, and, concurrently with such receipt, the Issuer has issued and delivered the Notes and the Ownership Certificate to or upon the order of the Depositor, in exchange for the Mortgage Loans and the other property
of the Trust Estate. 
  
 Concurrently with the execution and
delivery of this Agreement, the Depositor does hereby assign to the Issuer all of its rights and interest under the Mortgage Loan Purchase Agreement but without delegation of any of its obligations thereunder. The Issuer hereby accepts such
assignment, and shall be entitled to exercise all the rights of the Depositor under the Mortgage Loan Purchase Agreement as if, for such purpose, it were the Depositor. Upon the issuance of the Notes, ownership in the Trust Estate shall be vested in
the Issuer, subject to the lien created by the Indenture in favor of the Indenture Trustee, for the benefit of the Noteholders. The foregoing sale, transfer, assignment, set-over, deposit and conveyance does not and is not intended to result in
creation or assumption by the Indenture Trustee of any obligation of the Depositor, the Seller, or any other Person in connection with the Mortgage Loans or any other agreement or instrument relating thereto except as specifically set forth
herein. 
  
 (b) In connection with such transfer and
assignment, the Depositor does hereby deliver to, and deposit with, or cause to be delivered to and deposited with, the Indenture Trustee, and/or the Custodian acting on the Indenture Trustee’s behalf, the following documents or instruments
with respect to each Mortgage Loan (each a “Mortgage File”) so transferred and assigned: 
  
 (i) the original Mortgage Note, endorsed either (A) in blank or (B) to the order of the Indenture Trustee in the form of the Form of
Endorsement set forth in Exhibit A-4 hereto, or with respect to any lost Mortgage Note, an original Lost Note Affidavit, in the form set forth in Exhibit B hereto, stating that the original Mortgage Note was lost, misplaced or destroyed, together
with a copy of the related Mortgage Note; 
  
 (ii) except as provided below, the original Mortgage with evidence of recording thereon (if the related Mortgage Loan is a MERS Mortgage Loan, the Mortgage shall note the MIN and contain language that such Mortgage Loan is a MERS Mortgage
Loan). If in connection with any Mortgage Loan, the Servicer cannot deliver or cause to be delivered the original Mortgage with evidence of recording thereon on or prior to the Closing Date because of a delay caused by the public recording office
where such Mortgage has been delivered for recordation or because such Mortgage has been lost or because such public recording office retains the original recorded Mortgage, the Servicer shall deliver or cause to be delivered to the Custodian a
photocopy of such 

  

 32 

 
Mortgage together with (i) in the case of a delay caused by the public recording office, an Officer’s Certificate of the Servicer stating that such
Mortgage has been delivered to the appropriate public recording office for recordation and that the original recorded Mortgage or a copy of such Mortgage certified by such public recording office to be a true and complete copy of the original
recorded Mortgage will be promptly delivered to the Custodian upon receipt thereof by the Servicer; or (ii) in the case of a Mortgage where a public recording office retains the original recorded Mortgage or in the case where a Mortgage is lost
after recordation in a public recording office, a copy of such Mortgage with the recording information thereon certified by such public recording office to be a true and complete copy of the original recorded Mortgage; 
  
 (iii) with respect to each Non-MERS Mortgage Loan, an
original Assignment of Mortgage (which may be in the form of a blanket assignment if permitted in the jurisdiction where the Mortgaged Property is located) with evidence of recording thereon unless an Opinion of Counsel described in clause (c) below
is delivered to the Indenture Trustee and the Rating Agencies, in which case, the Assignment of Mortgage shall be in form and substance acceptable for recording. The Mortgage shall be assigned either (A) in blank, without recourse, or (B) to
“U.S. Bank National Association, as Indenture Trustee of the HomeBanc Mortgage Trust 2005-1”, without recourse or (C) to the order of the Indenture Trustee; 
  
 (iv) an original copy of any intervening assignment of Mortgage showing a complete chain of assignments or,
in the case of an intervening assignment that has not been received by the Servicer from the public recording office, an Officer’s Certificate of the Servicer stating that such intervening assignment has been delivered to the appropriate public
recording office for recordation and that the original recorded intervening assignment or a copy of such intervening assignment certified by such public recording office to be a true and complete copy of the original recorded intervening assignment
will be promptly delivered to the Custodian upon receipt thereof by the Servicer, or in the case of an intervening assignment where a public recording office retains the original recorded intervening assignment, a copy of such intervening assignment
with the recording information thereon certified by such public recording office to be a true and complete copy of the original recorded intervening assignment; or in the case of an intervening assignment that has been lost, a written Opinion of
Counsel for the Seller that such original intervening assignment is not required to enforce the Indenture Trustee’s interest in the Mortgage Loans; 
  
 (v) the original or a certified copy of lender’s Title Insurance Policy (or, in lieu thereof, a commitment to issue such Title
Insurance Policy, with an original or a certified copy of such Title Insurance Policy to follow as soon after the Closing Date as reasonably practicable) or attorney’s opinion of title and abstract of title; 
  
 (vi) the original or copy of the policy or certificate of
primary mortgage guaranty insurance, to the extent available, if any; 
  

 33 

 (vii) the original or copies of each assumption, modification, written assurance or
substitution agreement, if any, or as to any such agreement which cannot be delivered prior to the Closing Date because of a delay caused by the public recording office where such assumption, modification or substitution agreement has been delivered
for recordation, a photocopy of such assumption, modification or substitution agreement, pending delivery of the original thereof, together with an Officer’s Certificate of the Depositor certifying that the copy of such assumption, modification
or substitution agreement delivered to the Custodian is a true copy and that the original of such agreement has been forwarded to the public recording office; and 
  
 (viii) the original of any security agreement or equivalent instrument executed in connection with the
Mortgage or as to any security agreement or equivalent instrument that cannot be delivered on or prior to the Closing Date because of a delay caused by the public recording office where such document has been delivered for recordation, a photocopy
of such document, pending delivery of the original thereof, together with an Officer’s Certificate of the Depositor certifying that the copy of such security agreement, chattel mortgage or their equivalent delivered to the Custodian is a true
copy and that the original of such document has been forwarded to the public recording office. 
  
 The Depositor and the Seller acknowledge and agree that the form of endorsement attached hereto as Exhibit A-4 is intended to effect the transfer to the Indenture Trustee, for the benefit of the Noteholders, of the
Mortgage Notes and the Mortgages. 
  
 (c) Assignments of Mortgage
with respect to each Non-MERS Mortgage Loan shall be recorded; provided, however, that such Assignments of Mortgage need not be recorded if, on or prior to the Closing Date, the Seller delivers an Opinion of Counsel (which must be Independent
counsel) acceptable to the Rating Agencies, to the effect that recording in such states is not required to protect the Indenture Trustee’s interest in the related Non-MERS Mortgage Loans. 
  
 (d) In instances where a Title Insurance Policy is required to be delivered
to the Indenture Trustee or the Custodian on behalf of the Indenture Trustee under clause (b)(vi) above and is not so delivered, the Seller will provide a copy of such Title Insurance Policy to the Indenture Trustee, or to the Custodian on behalf of
the Indenture Trustee no later than ninety (90) days of the receipt by the Seller of the recorded documents from the applicable public recording office. 
  
 (e) For Mortgage Loans (if any) that have been prepaid in full after the Cut-off Date and prior to the Closing Date, the Depositor, in lieu of delivering
the above documents, herewith delivers to the Indenture Trustee, or to the Custodian on behalf of the Indenture Trustee, an Officer’s Certificate which shall include a statement to the effect that all amounts received in connection with such
prepayment that are required to be deposited in the Collection Account pursuant to Section 5.06 have been so deposited. All original documents that are not delivered to the Indenture Trustee or the Custodian on behalf of the Indenture Trustee shall
be held by the Servicer in trust for the benefit of the Indenture Trustee and the Noteholders. 
  

 34 

 Section 2.02. Acceptance of Trust Estate; Review of Documentation. 
  
 (a) Subject to the provisions of Section 2.01, the Issuer acknowledges
receipt of the assets transferred by the Depositor of the assets included in the Trust Estate and has directed that the documents referred to in Section 2.01 and all other assets included in the definition of “Trust Estate” be delivered to
the Indenture Trustee (or the Custodian) on its behalf. 
  
 The
Indenture Trustee, by execution and delivery hereof, acknowledges receipt by it or by the Custodian on its behalf of the Mortgage Files pertaining to the Mortgage Loans listed on the Mortgage Loan Schedule, subject to review thereof by the Indenture
Trustee, or by the Custodian on behalf of the Indenture Trustee, under this Section 2.02. The Indenture Trustee, or the Custodian on behalf of the Indenture Trustee, will execute and deliver to the Depositor, the Master Servicer, the Servicer (and
the Indenture Trustee if delivered by the Custodian) on the Closing Date an Initial Certification in the form annexed hereto as Exhibit A-1. 
  
 (b) Within 90 days after the Closing Date, the Indenture Trustee or the Custodian on behalf of the Indenture Trustee, will, for the benefit of
Noteholders, review each Mortgage File to ascertain that all required documents set forth in Section 2.01 have been received and appear on their face to contain the requisite signatures by or on behalf of the respective parties thereto, and shall
deliver to the Depositor, the Seller and the Issuer (and the Indenture Trustee if delivered by the Custodian) an Interim Certification in the form annexed hereto as Exhibit A-2 to the effect that, as to each Mortgage Loan listed in the Mortgage Loan
Schedule (other than any Mortgage Loan prepaid in full or any specifically identified in such certification as not covered by such certification), (i) all of the applicable documents specified in Section 2.01(b) are in its possession and (ii) such
documents have been reviewed by it and appear to relate to such Mortgage Loan. The Indenture Trustee, or the Custodian on behalf of the Indenture Trustee, shall determine whether such documents are executed and endorsed, but shall be under no duty
or obligation to inspect, review or examine any such documents, instruments, certificates or other papers to determine that the same are valid, binding, legally effective, properly endorsed, genuine, enforceable or appropriate for the represented
purpose or that they have actually been recorded or are in recordable form or that they are other than what they purport to be on their face. Neither the Indenture Trustee nor the Custodian shall have any responsibility for verifying the genuineness
or the legal effectiveness of or authority for any signatures of or on behalf of any party or endorser or for the perfection or priority of any document. 
  
 (c) If in the course of the review described in paragraph (b) above the Indenture Trustee discovers any document or documents constituting a part of a
Mortgage File that is missing, does not appear regular on its face (i.e., is mutilated, damaged, defaced, torn or otherwise physically altered) or appears to be unrelated to the Mortgage Loans identified in the Mortgage Loan Schedule, as
applicable (each, a “Material Defect”), the Indenture Trustee or the Custodian, discovering such Material Defect shall identify the Mortgage Loan to which such Material Defect relates in the Interim Certification delivered to the Depositor
and the Master Servicer. Within 90 days of its receipt of such notice, the Seller shall be required to cure such Material Defect (and, in such event, the Seller shall provide the Indenture Trustee and the Custodian with 

  

 35 

 
an Officer’s Certificate confirming that such cure has been effected). If the Seller does not so cure such Material Defect, if a loss has been incurred
with respect to such Mortgage Loan that would, if such Mortgage Loan were not purchased from the Trust Estate, constitute a Realized Loss, and such loss is attributable to the failure of the Seller to cure such Material Defect, the Seller shall
repurchase the related Mortgage Loan from the Trust Estate at the Purchase Price. A loss shall be deemed to be attributable to the failure of the Seller to cure a Material Defect if, as determined by the Seller acting in good faith, absent such
Material Defect, such loss would not have been incurred. The Seller may, in lieu of repurchasing a Mortgage Loan pursuant to this Section 2.02, substitute for such Mortgage Loan a Qualifying Substitute Mortgage Loan subject to the provisions of
Section 3.03. The failure of the Indenture Trustee or the Custodian to deliver the Interim Certification within 90 days after the Closing Date shall not affect or relieve the Seller of its obligation to repurchase any Mortgage Loan pursuant to this
Section 2.02 or any other Section of this Agreement requiring the repurchase of Mortgage Loans from the Trust Estate. 
  
 (d) Within 180 days following the Closing Date, the Indenture Trustee, or the Custodian, shall deliver to the Depositor, the Master Servicer and the
Servicer (and the Indenture Trustee if delivered by the Custodian) a Final Certification substantially in the form attached as Exhibit A-3 evidencing the completeness of the Mortgage Files in its possession or control, with any exceptions noted
thereto. 
  
 (e) Nothing in this Agreement shall be construed to
constitute an assumption by the Trust Estate, the Indenture Trustee, the Custodian or the Noteholders of any unsatisfied duty, claim or other liability on any Mortgage Loan or to any Mortgagor. 
  
 (f) Notwithstanding anything to the contrary contained herein, each of the
parties hereto acknowledges that the Custodian shall perform the applicable review of the Mortgage Loans and respective certifications thereof as provided in the Custodial Agreement. 
  
 (g) Upon execution of this Agreement, the Depositor hereby delivers to the Indenture Trustee and the Indenture Trustee
acknowledges a receipt of the Mortgage Loan Purchase Agreement. 
  
 (h) For purposes of the determinations required to be made by the Indenture Trustee or the Custodian pursuant to paragraphs (a) through (d) of this Section 2.02, the Indenture Trustee or the Custodian, as applicable, shall be entitled to
conclusively rely upon the diskette, tape or other electronic media provided by or on behalf of the Seller with respect to the Mortgage Loans as to whether (i) any guarantee was executed in connection with any Mortgage Loan, (ii) any assumption,
modification or substitution agreement was executed in connection with any Mortgage Loan, (iii) primary mortgage guaranty insurance is required with respect to any Mortgage Loan or (iv) any security agreement or equivalent instrument was executed in
connection with any Mortgage Loan. 
  

 36 

 Section 2.03. Grant Clause. 
  
 (a) It is intended that the conveyance by the Depositor to the Issuer of the Mortgage Loans, as provided for in Section 2.01
be construed as a sale by the Depositor to the Issuer of the Mortgage Loans and other assets in the Trust Estate for the benefit of the Noteholders. Further, it is not intended that any such conveyance be deemed to be a pledge of the Mortgage Loans
by the Depositor to the Issuer to secure a debt or other obligation of the Depositor. However, in the event that the Mortgage Loans are held to be property of the Depositor or if for any reason this Agreement is held or deemed to create a security
interest in the Mortgage Loans and other assets in the Trust Estate, then it is intended that (a) this Agreement shall also be deemed to be a security agreement within the meaning of Articles 8 and 9 of the New York UCC (or the Relevant UCC if not
the New York UCC); (b) the conveyances provided for in Section 2.01 shall be deemed to be (1) a grant by the Depositor to the Issuer of a security interest in all of the Depositor’s right (including the power to convey title thereto), title and
interest, whether now owned or hereafter acquired, in and to (A) the Mortgage Loans, including the Mortgage Notes, the Mortgages, any related insurance policies and all other documents in the related Mortgage Files, (B) all amounts payable pursuant
to the Mortgage Loans in accordance with the terms thereof and (C) any and all general intangibles consisting of, arising from or relating to any of the foregoing, and all proceeds of the conversion, voluntary or involuntary, of the foregoing into
cash, instruments, securities or other property, including without limitation all Liquidation Proceeds, all Insurance Proceeds, all amounts from time to time held or invested in the Collection Account, whether in the form of cash, instruments,
securities or other property and (2) an assignment by the Depositor to the Issuer of any security interest in any and all of the Depositor’s right (including the power to convey title thereto), title and interest, whether now owned or hereafter
acquired, in and to the property described in the foregoing clauses (1)(A) through (C); (c) the possession by the Indenture Trustee or any other agent of the Issuer of Mortgage Notes, and such other items of property as constitute instruments,
money, negotiable documents or chattel paper shall be deemed to be “possession by the secured party,” or possession by a purchaser or a person designated by such secured party, for purposes of perfecting the security interest pursuant to
the New York UCC and any other Relevant UCC (including, without limitation, Section 9-313, 8-313 or 8-321 thereof); and (d) notifications to persons holding such property, and acknowledgments, receipts or confirmations from persons holding such
property, shall be deemed notifications to, or acknowledgments, receipts or confirmations from, financial intermediaries, bailees or agents (as applicable) of the Issuer for the purpose of perfecting such security interest under applicable law.

  
 (b) The Depositor and, at the Depositor’s direction, the
Issuer shall, to the extent consistent with this Agreement, take such reasonable actions as may be necessary to ensure that, if this Agreement were deemed to create a security interest in the Mortgage Loans and the other property of the Trust
Estate, such security interest would be deemed to be a perfected security interest of first priority under applicable law and will be maintained as such throughout the term of this Agreement. Without limiting the generality of the foregoing, the
Depositor shall prepare and file any UCC financing statements that are necessary to perfect the Indenture Trustee’s security interest in or lien on the Mortgage Loans, as evidenced by an Officer’s Certificate of the Depositor, and furnish
a copy of each such filed financing statement to the Securities Administrator. The Indenture Trustee shall prepare and file, at the expense of the Issuer, all 

  

 37 

 
filings necessary to maintain the effectiveness of any original filings necessary under the Relevant UCC to perfect the Indenture Trustee’s security
interest in or lien on the Mortgage Loans, including without limitation (x) continuation statements, and (y) to the extent that a Responsible Officer of the Indenture Trustee has received written notice of such change or transfer, such other
statements as may be occasioned by (1) any change of name of the Seller, the Depositor or the Issuer, (2) any change of location of the place of business or the chief executive office of the Seller or the Depositor or (3) any transfer of any
interest of the Seller or the Depositor in any Mortgage Loan. 
  
 Neither the Depositor nor the Issuer shall organize under the law of any jurisdiction other than the State under which each is organized as of the Closing Date (whether changing its jurisdiction of organization or organizing under an
additional jurisdiction) without giving thirty (30) days prior written notice of such action to its immediate and mediate transferee, including the Indenture Trustee. Before effecting such change, each of the Depositor or the Issuer proposing to
change its jurisdiction of organization shall prepare and file in the appropriate filing office any financing statements or other statements necessary to continue the perfection of the interests of its immediate and mediate transferees, including
the Indenture Trustee, in the Mortgage Loans. In connection with the transactions contemplated by this Agreement and the Indenture, each of the Depositor and the Issuer authorizes its immediate or mediate transferee to file in any filing office any
initial financing statements, any amendments to financing statements, any continuation statements, or any other statements or filings described in this Section 2.03(b). 
  
 (c) The Depositor shall not take any action inconsistent with the sale by the Depositor of all of its right, title and
interest in and to the Trust Estate and shall indicate or shall cause to be indicated in its records and records held on its behalf that ownership of each Mortgage Loan and the other property of the Issuer is held by the Issuer. In addition, the
Depositor shall respond to any inquiries from third parties with respect to ownership of a Mortgage Loan or any other property of the Trust Estate by stating that it is not the owner of such Mortgage Loan and that ownership of such Mortgage Loan or
other property of the Trust Estate is held by the Issuer on behalf of the Noteholders. 
  
 Section 2.04. Option to Contribute Derivative Instrument 
  
 At any time on or after the Closing Date, the Seller shall have the right to contribute to, and deposit into, the Trust a derivative contract or
comparable instrument (a “Derivative Instrument”). The Derivative Instrument may have a notional amount in excess of the sum of the beneficial interests in the Trust. Any such instrument shall constitute a fully prepaid agreement. The
Securities Administrator shall have no tax reporting duties with respect to any such Derivative Instrument. 
  

 38 

 ARTICLE III 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Section 3.01. Representations and Warranties of the Depositor and the Seller. 
  
 (a) The Depositor hereby represents and warrants to the Issuer, the Indenture Trustee for the benefit of Noteholders, the
Securities Administrator, the Master Servicer, the Seller and the Servicer as of the Closing Date or such other date as is specified, that: 
  
 (i) This Agreement constitutes a legal, valid and binding obligation of the Depositor, enforceable against the Depositor in accordance
with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights in general and except as
such enforceability may be limited by general principles of equity (whether considered in a proceeding at law or in equity); 
  
 (ii) Immediately prior to the transfer by the Depositor to the Trust Estate of each Mortgage Loan, the Depositor had good and equitable
title to each Mortgage Loan (insofar as such title was conveyed to it by the Seller) subject to no prior lien, claim, participation interest, mortgage, security interest, pledge, charge or other encumbrance or other interest of any nature;

  
 (iii) As of the Closing Date, the Depositor
has transferred all right, title and interest in the Mortgage Loans to the Trust Estate; 
  
 (iv) The Depositor has not transferred the Mortgage Loans to the Trust Estate with any intent to hinder, delay or defraud any of its
creditors; and 
  
 (v) The Depositor has been
duly organized and is validly existing as a corporation in good standing under the laws of Delaware, with full power and authority to own its assets and conduct its business as presently being conducted. 
  
 (b) The Seller hereby represents and warrants to the Issuer, the Indenture
Trustee for the benefit of Noteholders, the Securities Administrator, the Master Servicer and the Depositor as of the Closing Date or such other date as is specified, that: 
  
 (i) the Seller is a Georgia corporation, duly organized validly existing and in good standing under the laws
of the State of Georgia, and has the corporate power to own its assets and to transact the business in which it is currently engaged. The Seller 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 any properties owned or leased by it requires such qualification and in which the failure so to qualify would have a material adverse effect on the business, properties, assets, or condition
(financial or other) of the Seller; 
  

 39 

 (ii) the Seller has the corporate power and authority to make, execute, deliver and
perform this Agreement and all of the transactions contemplated under the 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 Seller enforceable in accordance with its terms, except as enforcement of such terms may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’
rights generally and by the availability of equitable remedies; 
  
 (iii) the Seller is not required to obtain the consent of any other party 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, prior to the Closing Date; 
  
 (iv) the
execution, delivery and performance of this Agreement by the Seller will not violate any provision of any existing law or regulation or any order or decree of any court applicable to the Seller or any provision of the articles of incorporation or
bylaws of the Seller, or constitute a material breach of any mortgage, indenture, contract or other agreement to which the Seller is a party or by which the Seller may be bound; 
  
 (v) no litigation or administrative proceeding of or before any court, tribunal or governmental body is
currently pending, or to the knowledge of the Seller threatened, against the Seller or any of its properties or with respect to this Agreement which in the opinion of the Seller has a reasonable likelihood of resulting in a material adverse effect
on the transactions contemplated by this Agreement; and 
  
 (vi) the Seller has been organized in conformity with the requirements for qualification as a REIT; the Seller will file with its federal income tax return for its taxable year ended December 31, 2004, an election to
be treated as a REIT for federal income tax purposes; and the Seller currently qualifies as, and it proposes to operate in a manner that will enable it to continue to qualify as, a REIT. 
  
 (c) The Seller hereby makes for the benefit of the Issuer, the Indenture Trustee for the benefit of Noteholders, the
Securities Administrator, the Master Servicer and the Depositor as of the Closing Date or such other date as is specified, with respect to the Mortgage Loans, the representations and warranties set forth in Exhibit A of the Mortgage Loan Purchase
Agreement. 
  
 (d) To the extent that any fact, condition or event
with respect to a Mortgage Loan constitutes a breach of a representation or warranty of the Seller under subsection (c) above or the Mortgage Loan Purchase Agreement, the only right or remedy of the Indenture Trustee or any Noteholder hereunder
shall be their rights to enforce the obligations of the Seller under any applicable representation or warranty made by it. The Indenture Trustee on behalf of the Issuer 

  

 40 

 
acknowledges that the Depositor shall have no obligation or liability with respect to any breach of any representation or warranty with respect to the
Mortgage Loans (except as set forth in Section 3.01(a)(ii)) under any circumstances. 
  
 Section 3.02. Discovery of Breach. It is understood and agreed that the representations and warranties (i) of the Depositor set forth in Section 3.01(a), (ii) of the Seller set forth in Section 3.01(b) and (c)
and (iii) of the Servicer pursuant to Section 4.05 of this Agreement, shall each survive delivery of the Mortgage Files and the Assignment of Mortgage of each Mortgage Loan to the Indenture Trustee and shall continue throughout the term of this
Agreement. With respect to the representations and warranties which are made to the best of the Seller’s knowledge, if it is discovered by the Depositor, the Seller, the Securities Administrator, the Indenture Trustee, the Master Servicer, the
Underwriters or the Servicer that the substance of such representation and warranty is inaccurate and such inaccuracy materially and adversely affects the value of the Mortgage Loans or the interests of the Noteholders or the Indenture Trustee
therein, notwithstanding such Seller’s lack of knowledge with respect to the substance of such representation or warranty, remedies for breach will apply to such inaccuracy. Any breach of the representation and warranty set forth in clauses
(cc), (ee) and (ff) of Exhibit A of the Mortgage Loan Purchase Agreement shall be deemed to materially and adversely affect the interest of the Trust in that Mortgage Loan, notwithstanding the Seller’s lack of knowledge with respect to the
substance of such representation and warranty. Upon discovery by any of the Depositor, the Master Servicer, the Securities Administrator or the Indenture Trustee of a breach of any of such representations and warranties made by the Seller that
adversely and materially affects the value of the related Mortgage Loan, the party discovering such breach shall give prompt written notice to the other parties. Within 90 days of the discovery by the Seller of a breach of any representation or
warranty given to the Indenture Trustee by the Seller or the Seller’s receipt of written notice of such a breach, the Seller shall either (a) cure such breach in all material respects, (b) repurchase such Mortgage Loan or any property acquired
in respect thereof from the Indenture Trustee at the Purchase Price or (c) substitute a Qualifying Substitute Mortgage Loan for the affected Mortgage Loan. 
  
 Section 3.03. Repurchase, Purchase or Substitution of Mortgage Loans. 
  
 (a) With respect to any Mortgage Loan repurchased by the Seller pursuant to Section 3.02(b) of this Agreement, the principal
portion of the funds in respect of such repurchase of a Mortgage Loan will be considered a Principal Prepayment and the Purchase Price shall be deposited in the Collection Account. Upon receipt by the Securities Administrator of the full amount of
the Purchase Price for a Deleted Mortgage Loan and notification thereof has been made to the Indenture Trustee, or upon receipt of notification from the Custodian that it had received the Mortgage File for a Qualifying Substitute Mortgage Loan
substituted for a Deleted Mortgage Loan (and any applicable Substitution Amount), the Indenture Trustee shall release or cause to be released and reassign to the Depositor or the Seller, as applicable, the related Mortgage File for the Deleted
Mortgage Loan and shall execute and deliver such instruments of transfer or assignment, in each case without recourse, representation or warranty, as shall be necessary to vest in such party or its designee or assignee title to any Deleted Mortgage
Loan 

  

 41 

 
released pursuant hereto, free and clear of all security interests, liens and other encumbrances created by this Agreement and the Indenture, which
instruments shall be prepared by the Servicer and the Indenture Trustee shall have no further responsibility with respect to the Mortgage File relating to such Deleted Mortgage Loan. 
  
 (b) With respect to each Qualifying Substitute Mortgage Loan to be delivered to the Indenture Trustee (or the Custodian) in
exchange for a Deleted Mortgage Loan: (i) the Depositor or the Seller, as applicable, must deliver to the Indenture Trustee (or a Custodian) the Mortgage File for the Qualifying Substitute Mortgage Loan containing the documents set forth in Section
2.01(b) along with a written certification certifying as to the delivery of such Mortgage File and containing the granting language set forth in Section 2.01(a); and (ii) the Seller and the Depositor will be deemed to have made, with respect to such
Qualifying Substitute Mortgage Loan, each of the representations and warranties made by it with respect to the related Deleted Mortgage Loan. As soon as practicable after the delivery of any Qualifying Substitute Mortgage Loan hereunder, the
Indenture Trustee, at the expense of the Depositor and at the direction and with the cooperation of the Servicer shall (i) with respect to a Qualifying Substitute Mortgage Loan that is a Non-MERS Mortgage Loan, cause the Assignment of Mortgage to be
recorded by the Servicer if required pursuant to Section 2.01(c), or (ii) with respect to a Qualifying Substitute Mortgage Loan that is a MERS Mortgage Loan, cause to be taken such actions as are necessary to cause the Indenture Trustee (on behalf
of the Issuer) to be clearly identified as the owner of each such Mortgage Loan on the records of MERS if required pursuant to Section 2.01(c). 
  
 Section 3.04. Representations and Warranties of the Depositor with respect to Security Interest. (a) With respect to the Mortgage Notes, the
Depositor represents and warrants that: 
  
 (i)
This Agreement creates a valid and continuing security interest (as defined in the applicable UCC in the Mortgage Notes in favor of the Issuer, which security interest is prior to all other liens, and is enforceable as such against creditors of and
purchasers from the Issuer; 
  
 (ii) The Mortgage
Notes constitute “instruments” within the meaning of the applicable UCC; 
  
 (iii) The Depositor owns and has good title to the Mortgage Notes free and clear of any lien, claim or encumbrance of any Person;

  
 (iv) The Depositor has received all consents
and approvals required by the terms of the Mortgage Notes to the pledge of the Mortgage Notes hereunder to the Issuer; 
  
 (v) All original executed copies of each Mortgage Note have been or will be delivered to the Custodian, as set forth in this Transfer and
Servicing Agreement; 
  

 42 

 (vi) The Depositor has received a written acknowledgement from the Custodian that it is
holding the Mortgage Notes solely on behalf and for the benefit of the Issuer; 
  
 (vii) Other than the security interest granted to the Issuer pursuant to this Agreement, the Depositor has not pledged, assigned, sold,
granted a security interest in, or otherwise conveyed any of the Mortgage Notes. The Depositor has not authorized the filing of and is not aware of any financing statements against the Depositor that include a description of the collateral covering
the Mortgage Notes other than a financing statement relating to the security interest granted to the Issuer hereunder or that has been terminated. The Depositor is not aware of any judgment or tax lien filings against the Depositor; and 

 
 (viii) None of the Mortgage Notes has any marks or
notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Issuer. 
  
 (b) The representations and warranties set forth in this Section 3.04 shall survive the Closing Date and shall not be waived. 
  
 ARTICLE IV 
  
 ADMINISTRATION AND SERVICING OF THE 
 MORTGAGE LOANS BY THE SERVICER 
  
 Section 4.01. Servicer to Perform Servicing Responsibilities. 
  
 (a) Contract for Servicing; Possession of Servicing Files. The Issuer does hereby contract with the Servicer for the servicing of the Mortgage Loans for the benefit of the Issuer and the Indenture Trustee. The
Servicer shall maintain a Servicing File with respect to each Mortgage Loan in order to service such Mortgage Loans pursuant to this Agreement and each Servicing File delivered to the Servicer shall be held in trust by the Servicer for the benefit
of the Issuer and the Indenture Trustee. The Servicer’s possession of any portion of the Mortgage Loan documents shall be at the will of the Indenture Trustee for the sole purpose of facilitating servicing of the related Mortgage Loan pursuant
to this Agreement, and such retention and possession by the Servicer shall be in a custodial capacity only. The ownership of each Mortgage Note, Mortgage, and the contents of the Servicing File shall be vested in the Indenture Trustee and the
ownership of all records and documents with respect to the related Mortgage Loan prepared by or which come into the possession of the Servicer shall immediately vest in the Indenture Trustee and shall be retained and maintained, in trust, by the
Servicer at the will of the Indenture Trustee in such custodial capacity only. The Servicing File retained by the Servicer pursuant to this Agreement shall be identified in accordance with the Servicer’s file tracking system to reflect the
ownership of the related Mortgage Loan by the Indenture Trustee. The Servicer shall release from its custody the contents of any Servicing File retained by it only in accordance with this Agreement. 
  

 43 

 (b) Books and Records. All rights arising out of the Mortgage Loans shall be vested in the
Indenture Trustee, subject to the Servicer’s rights to service and administer the Mortgage Loans hereunder in accordance with the terms of this Agreement. All funds received on or in connection with a Mortgage Loan, other than the Servicing Fee
and other compensation and reimbursement to which the Servicer and the Master Servicer are entitled as set forth herein, including but not limited to Section 4.04(c), shall be received and held by them in trust for the benefit of the Indenture
Trustee pursuant to the terms of this Agreement. 
  
 The Servicer
shall forward to the Custodian original documents evidencing an assumption, modification, consolidation or extension of any Mortgage Loan entered into in accordance with Section 4.02(a) within one week of their execution; provided,
however, that the Servicer shall provide the Custodian with a Servicer certified true copy of any such document submitted for recordation within one week 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 180 days of its submission for recordation. 
  
 Section 4.02. Servicing of the Mortgage Loans. 
  
 (a) Servicer to Service. The Servicer, acting directly or through one or more subservicers as provided in Section
4.09, shall service and administer the Mortgage Loans from and after the Closing Date and, except where prior consent of the Master Servicer is required under this Agreement, in accordance with this Agreement and with Accepted Servicing Practices,
and shall have full power and authority, acting alone, to do or cause to be done any and all things in connection with such servicing and administration which the Servicer may deem necessary or desirable and consistent with the terms of this
Agreement and with Accepted Servicing Practices and exercise the same care that it customarily employs for its own account. Except as set forth in this Agreement, the Servicer shall service the Mortgage Loans in strict compliance with the servicing
provisions of the Fannie Mae Guides (special servicing option), which include, but are not limited to, provisions regarding the liquidation of Mortgage Loans, the collection of Mortgage Loan payments, the payment of taxes, insurance and other
charges, the maintenance of hazard insurance with a Qualified Insurer, the maintenance of mortgage impairment insurance, the maintenance of fidelity bond and errors and omissions insurance, inspections, the restoration of Mortgaged Property, the
maintenance of Primary Mortgage Insurance Policies and Lender Primary Mortgage Insurance Policies, insurance claims, the title, management and disposition of REO Property, permitted withdrawals with respect to REO Property, liquidation reports, and
reports of foreclosures and abandonments of Mortgaged Property, the transfer of Mortgaged Property, the release of Mortgage Files, annual statements, and examination of records and facilities. In the event of any conflict, inconsistency or
discrepancy between any of the servicing provisions of this Agreement and any of the servicing provisions of the Fannie Mae Guides, the provisions of this Agreement shall control and be binding upon the Servicer and the other parties hereto.

  

 44 

 Consistent with the terms of this Agreement, the Servicer may waive, modify or vary any term of any
Mortgage Loan or consent to the postponement of any such term or in any manner grant indulgence to any Mortgagor if in the Servicer’s reasonable and prudent determination such waiver, modification, postponement or indulgence is not materially
adverse to the Issuer, Indenture Trustee and the Noteholders, provided, however, that unless the Servicer has obtained the prior written consent of the Master Servicer, the Servicer shall not permit any modification with respect to any Mortgage Loan
that would change the Mortgage Rate, defer for more than ninety (90) days or forgive any payment of principal or interest, reduce or increase the outstanding principal balance (except for actual payments of principal) or change the final maturity
date on such Mortgage Loan. In the event of any such modification which has been agreed to in writing by the Master Servicer and which permits the deferral of interest or principal payments on any Mortgage Loan, the Servicer shall, on the Business
Day immediately preceding the Servicer Remittance Date in any month in which any such principal or interest payment has been deferred, deposit in the Custodial Account from its own funds, in accordance with Section 4.03(c), the difference between
(a) such month’s principal and one month’s interest at the Net Mortgage Rate on the unpaid principal balance of such Mortgage Loan and (b) the amount paid by the Mortgagor. The Servicer shall be entitled to reimbursement for such advances
to the same extent as for all other advances pursuant to Section 4.03. Without limiting the generality of the foregoing, the Servicer shall continue, and is hereby authorized and empowered, to prepare, execute and deliver on behalf of itself, the
Issuer and the Indenture Trustee, all instruments of satisfaction or cancellation, or of partial or full release, discharge and all other comparable instruments, with respect to the Mortgage Loans and with respect to the Mortgaged Properties.
Notwithstanding anything herein to the contrary, the Servicer may not enter into a forbearance agreement or similar arrangement with respect to any Mortgage Loan which runs more than one hundred eighty (180) days after the first delinquent Due Date.
Any such agreement shall be approved by the Master Servicer and, if required, by the Primary Mortgage Insurance Policy insurer and Lender Primary Mortgage Insurance Policy insurer. 
  
 In servicing and administering the Mortgage Loans, the Servicer shall employ Accepted Servicing Practices, giving due
consideration to the reliance by the Issuer, Indenture Trustee and Noteholders on the Servicer. Notwithstanding the appointment of any subservicer pursuant to Section 4.09, the Servicer shall remain liable for the performance of all of the servicing
obligations and responsibilities under this Agreement. 
  
 (b)
Servicer Discretion. In managing the liquidation of defaulted Mortgage Loans, the Servicer will have sole discretion, subject to the terms of this Agreement, to sell defaulted Mortgage Loans; provided, however, that the Servicer shall
not take any action that is inconsistent with or prejudices the interests of the Noteholders in any Mortgage Loan or the rights and interests of the Depositor, the Indenture Trustee and the Noteholders under this Agreement. 
  

 45 

 (c) Collection and Liquidation of Mortgage Loans. Continuously from the date hereof until the date
each Mortgage Loan ceases to be subject to this Agreement, the Servicer will proceed diligently to collect all payments due under each Mortgage Loan when the same shall become due and payable and shall, to the extent such procedures shall be
consistent with this Agreement, Accepted Servicing Practices, and the terms and provisions of any related Primary Mortgage Insurance Policy and Lender Primary Mortgage Insurance Policy, follow such collection procedures as it follows with respect to
mortgage loans comparable to the Mortgage Loans and held for its own account. Further, the Servicer will take special care in ascertaining and estimating annual escrow payments, and all other charges that, as provided in the Mortgage, will become
due and payable, so that the installments payable by the Mortgagors will be sufficient to pay such charges as and when they become due and payable. 
  
 The Servicer shall use its best efforts, consistent with the procedures that the Servicer would use in servicing loans for its own account, consistent
with Accepted Servicing Practices, any Primary Mortgage Insurance Policies and Lender Primary Mortgage Insurance Policies and the best interest of the Issuer, the Indenture Trustee and the Noteholders, 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 4.02(a). Foreclosure or
comparable proceedings shall be initiated within ninety (90) days of default for Mortgaged Properties for which no satisfactory arrangements can be made for collection of delinquent payments, subject to state and federal law and regulation. The
Servicer shall use its best efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Trust, taking into account, among other things, the timing of foreclosure proceedings. The
Servicer, on behalf of the Issuer, the Indenture Trustee and the Noteholders, may also, in its discretion, as an alternative to foreclosure, sell defaulted Mortgage Loans at fair market value to third parties, if the Servicer reasonably believes
that such sale would maximize proceeds to the Trust (on a present value basis) with respect to each such Mortgage Loan. The foregoing is subject to the provisions that, in any case in which a Mortgaged Property shall have suffered damage, the
Servicer shall not be required to expend its own funds toward the restoration of such property unless it shall determine in its discretion (i) that such restoration will increase the proceeds of liquidation of the related Mortgage Loan to the Trust
after reimbursement to itself for such expenses, and (ii) that such expenses will be recoverable by the Servicer through Insurance Proceeds, Condemnation Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in
Section 4.02(e). Servicer shall obtain prior approval of Purchaser or the Master Servicer as to repair or restoration expenses in excess of ten thousand dollars ($10,000). The Servicer shall notify the Master Servicer in writing of the commencement
of foreclosure proceedings and not less than five (5) days prior to the acceptance or rejection of any offer of reinstatement. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or functions;
provided, however, that it shall be entitled to reimbursement thereof from the related property, as contemplated in Section 4.02(e). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed
in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or 

  

 46 

 
if the Master Servicer or the Indenture Trustee otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or
review is to be conducted by a qualified inspector at the Master Servicer’s or Indenture Trustee’s expense, as applicable. Upon completion of the inspection, the Servicer shall promptly provide the Master Servicer and the Indenture Trustee
with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. 
  
 Notwithstanding the generality of the preceding paragraph, the Servicer shall
take such actions generally in accordance with the Servicer’s established default timeline and in accordance with Accepted Servicing Practices with respect to each Mortgage Loan and Mortgagor for which there is a delinquency until such time as
the related Mortgagor is current with all payments due under the Mortgage Loan. 
  
 (d) Establishment of and Deposits to Custodial Account. 
  
 (i) The Servicer shall segregate and hold all funds collected and received pursuant to the Mortgage Loans separate and apart from any of
its own funds and general assets and shall initially establish and maintain one or more Custodial Accounts, in the form of time deposit or demand accounts, each of which accounts shall be titled “HomeBanc Corp. in trust for U.S. Bank National
Association, as Indenture Trustee, for the HomeBanc Mortgage Trust 2005-1 Mortgage Backed Notes” and referred to herein as a “Custodial Account;” provided that so long as HomeBanc Mortgage Corporation is the subservicer under
the Subservicing Agreement, each Custodial Account shall be titled “HomeBanc Mortgage Corporation in trust for U.S. Bank National Association, as Indenture Trustee, for the HomeBanc Mortgage Trust 2005-1 Mortgage Backed Notes.” Each
Custodial Account shall be an Eligible Account. Any funds deposited in the Custodial Account shall at all times be insured by the FDIC up to the FDIC insurance limits, or must be invested in Eligible Investments subject to the provisions of Section
4.02(i) hereof. Funds deposited in the Custodial Account may be drawn on by the Servicer in accordance with Section 4.02(e) hereof. The creation of any Custodial Account shall be evidenced by a letter agreement in the form of Exhibit D hereto. A
copy of such certification or letter agreement shall be furnished to the Indenture Trustee, the Master Servicer and, upon request, to any subsequent owner of the Mortgage Loans. The Servicer shall deposit or cause to be deposited into the Custodial
Account, no later than 48 hours after receipt of funds, and retain therein the following payments and collections received or made by it subsequent to the Cut-off Date, or received by it prior to the Cut-off Date but allocable to a period subsequent
thereto, other than in respect of principal and interest on the Mortgage Loans due on or before the Cut-off Date: 
  
 (1) all payments on account of principal, including Principal Prepayments and related penalties, on the Mortgage Loans; 
  

 47 

 (2) all payments on account of interest on the Mortgage Loans adjusted to the Net
Mortgage Rate; 
  
 (3) all Net Liquidation
Proceeds; 
  
 (4) any amounts required to be
deposited by the Servicer in connection with any REO Property pursuant to Section 4.02(o) and in connection therewith, the Servicer shall provide the Master Servicer with written detail itemizing all of such amounts; 
  
 (5) all Insurance Proceeds including amounts required to be
deposited pursuant to Section 4.02(j), other than proceeds to be held in the Escrow Account and applied to the restoration or repair of the Mortgaged Property or released to the Mortgagor in accordance with Accepted Servicing Practices, the Mortgage
Loan Documents or applicable law; 
  
 (6) all
Condemnation Proceeds affecting any Mortgaged Property which are not released to the Mortgagor in accordance with Accepted Servicing Practices, the loan documents or applicable law; 
  
 (7) any Monthly Advances; 
  
 (8) with respect to each full or partial Principal Prepayment, any Prepayment Interest Shortfalls, to the
extent of the Servicer’s aggregate Servicing Fee received with respect to the related Prepayment Period; 
  
 (9) any amounts required to be deposited by the Servicer pursuant to Section 4.02(j) in connection with the deductible clause in any
blanket hazard insurance policy, such deposit shall be made from the Servicer’s own funds, without reimbursement therefor; and 
  
 (10) any amounts required to be deposited in the Custodial Account pursuant this Agreement. 
  
 The foregoing requirements for deposit in the Custodial
Account shall be exclusive, it being understood and agreed that, without limiting the generality of the foregoing, payments in the nature of the Servicing Fee and Ancillary Income, need not be deposited by the Servicer in the Custodial Account. Any
interest paid on funds deposited in the Custodial Account by the depository institution and any income or appreciation on any investment of such funds shall accrue to the benefit of the Servicer and the Servicer shall be entitled to retain and
withdraw such interest from the Custodial Account pursuant to Section 4.02(e). 
  
 (ii) The Servicer agrees that it shall not create, incur or subject any Mortgage Loans, or any funds that are deposited in any Custodial
Account or Escrow Account, or 

  

 48 

 
any funds that otherwise are or may become due or payable to or for the benefit of the Indenture Trustee, to any claim, lien, security interest, judgment,
levy, writ of attachment or other encumbrance, nor assert by legal action or otherwise any claim or right of setoff against any Mortgage Loan or any funds collected on, or in connection with, a Mortgage Loan. 
  
 (e) Permitted Withdrawals from Custodial Account. 
  
 The Servicer may, from time to time, withdraw from the Custodial Account for
the following purposes: 
  
 (i) to make payments
to the Master Servicer in the amounts and in the manner provided for in Section 4.03(a); 
  
 (ii) to reimburse itself for Monthly Advances, the Servicer’s right to reimburse itself pursuant to this subclause (ii) being limited
to amounts received on the related Mortgage Loan which represent late collections (net of the related Servicing Fees) of principal and/or interest respecting which any such advance was made, it being understood that, in the case of such
reimbursement, the Servicer’s right thereto shall be prior to the rights of the Noteholders, except that, where the Servicer is required to repurchase a Mortgage Loan, pursuant to Section 3.03, the Servicer’s right to such reimbursement
shall be subsequent to the payment to the Trust of the Purchase Price pursuant to such Section and all other amounts required to be paid to the Trust with respect to such Mortgage Loan; 
  
 (iii) to reimburse itself for unreimbursed Monthly Advances and Servicing Advances and any unpaid Servicing
Fees (or REO administration fees described in Section 4.02(o)), the Servicer’s right to reimburse itself pursuant to this subclause (3) with respect to any Mortgage Loan being limited to related proceeds from Liquidation Proceeds, Condemnation
Proceeds and Insurance Proceeds in accordance with the relevant provisions of the Fannie Mae Guides or as otherwise set forth in this Agreement; any recovery shall be made upon liquidation of the REO Property; 
  
 (iv) to pay to itself as part of its servicing compensation
(a) any interest income or appreciation earned on funds in the Custodial Account (all such interest to be withdrawn monthly not later than each Servicer Remittance Date), (b) the Servicing Fee from that portion of any payment or recovery as to
interest with respect to a particular Mortgage Loan; 
  
 (v) to pay to itself with respect to each Mortgage Loan that has been repurchased pursuant to Section 3.03 all amounts received thereon and not distributed as of the date on which the related Purchase Price is determined, 
  

 49 

 (vi) to transfer funds to another Eligible Account in accordance with Section 4.02(i)
hereof; 
  
 (vii) to remove funds inadvertently
placed in the Custodial Account by the Servicer; 
  
 (viii) to clear and terminate the Custodial Account upon the termination of this Agreement; and 
  
 (ix) to reimburse itself for any Nonrecoverable Advances and amounts reimbursable pursuant to Section 4.05(b) and Section 4.06(b).

  
 (f) Establishment of and Deposits to Escrow Account.
The Servicer shall segregate and hold all funds collected and received pursuant to a Mortgage Loan constituting Escrow Payments separate and apart from any of its own funds and general assets and shall establish and maintain one or more Escrow
Accounts, in the form of time deposit or demand accounts, titled “HomeBanc Corp. in trust for U.S. Bank National Association, as Indenture Trustee, for the HomeBanc Mortgage Trust 2005-1,” provided that so long as HomeBanc Mortgage
Corporation is the subservicer under the Subservicing Agreement, each Escrow Account shall be titled “HomeBanc Mortgage Corporation in trust for U.S. Bank National Association, as Indenture Trustee, for the HomeBanc Mortgage Trust 2005-1
Mortgage Backed Notes.” The Escrow Accounts shall be an Eligible Account. Nothing herein shall require the Servicer to compel a Mortgagor to establish an Escrow Account in violation of applicable law. Funds deposited in the Escrow Account may
be drawn on by the Servicer in accordance with Section 4.02(g). The creation of any Escrow Account shall be evidenced by a letter agreement in the form of Exhibit E hereto. A copy of such certification or letter agreement shall be furnished to the
Master Servicer. 
  
 The Servicer shall deposit in the Escrow
Account or Accounts on a daily basis, and in the Escrow Account or Accounts no later than 48 hours after receipt of funds, and retain therein: 
  
 (i) all Escrow Payments collected on account of the Mortgage Loans, for the purpose of effecting timely payment of any such items as
required under the terms of this Agreement; 
  
 (ii) all Insurance Proceeds which are to be applied to the restoration or repair of any Mortgaged Property; and 
  
 (iii) all Servicing Advances for Mortgagors whose Escrow Payments are insufficient to cover escrow disbursements. 
  
 The Servicer shall make withdrawals from the Escrow Account only to effect
such payments as are required under this Agreement, as set forth in Section 4.02(g). The Servicer shall be entitled to retain any interest earnings paid on funds deposited in the Escrow Account by the depository institution, other than interest on
escrowed funds required by law to be paid to the 

  

 50 

 
Mortgagor. To the extent required by law, the Servicer shall pay interest on escrowed funds to the Mortgagor notwithstanding that the Escrow Account may be
non-interest bearing or the interest earnings paid thereon are insufficient for such purposes. 
  
 (g) Permitted Withdrawals from Escrow Account. Withdrawals from the Escrow Account or Accounts may be made by the Servicer only: 
  
 (i) to effect timely payments of ground rents, taxes, assessments, water rates, Primary Mortgage Insurance
Policy premiums, if applicable, condominium charges, fire and hazard insurance premiums or other items constituting Escrow Payments for the related Mortgage; 
  

(ii) to reimburse the Servicer for any Servicing Advance of an Escrow Payment made by the Servicer with respect to a related Mortgage
Loan, but only from amounts received on the related Mortgage Loan which represent late collections of Escrow Payments thereunder; 
  
 (iii) to refund to any Mortgagor any funds found to be in excess of the amounts required to be escrowed under the terms of the related
Mortgage Loan; 
  
 (iv) to the extent permitted
by applicable law, for transfer to the Custodial Account and application to reduce the principal balance of the Mortgage Loan in accordance with the terms of the related Mortgage and Mortgage Note; 
  
 (v) for application to restoration or repair of the
Mortgaged Property in accordance with Section 4.02(n); 
  
 (vi) to pay to the Servicer, or any Mortgagor to the extent required by law, any interest paid on the funds deposited in the Escrow Account; 
  
 (vii) to clear and terminate the Escrow Account on the termination of this Agreement. As part of its servicing duties, the Servicer shall
pay to the Mortgagors interest on funds in Escrow Account, to the extent required by law, and to the extent that interest earned on funds in the Escrow Account is insufficient, shall pay such interest from its own funds, without any reimbursement
therefor; and 
  
 (viii) to pay to the Mortgagors
or other parties Insurance Proceeds deposited in accordance with Section 4.02(f). 
  
 (h) Payment of Taxes, Insurance and Other Charges; Maintenance of Primary Mortgage Insurance Policies; Collections Thereunder. 
  
 (i) With respect to each Mortgage Loan, the Servicer shall maintain accurate records reflecting the status
of ground rents, taxes, assessments, water rates and other charges which are or may become a lien upon the Mortgaged Property and the status of 

  

 51 

 
primary mortgage insurance premiums and fire and hazard insurance coverage and shall obtain, from time to time, all bills for the payment of such charges,
including renewal premiums and shall effect payment thereof prior to the applicable penalty or termination date and at a time appropriate for securing maximum discounts allowable, employing for such purpose deposits of the Mortgagor in the Escrow
Account which shall have been estimated and accumulated by the Servicer in amounts sufficient for such purposes, as allowed under the terms of the Mortgage or applicable law. To the extent that the Mortgage does not provide for Escrow Payments, the
Servicer shall determine that any such payments are made by the Mortgagor at the time they first become due. The Servicer assumes full responsibility for the timely payment of all such bills and shall effect timely payments of all such bills
irrespective of the Mortgagor’s faithful performance in the payment of same or the making of the Escrow Payments and shall make advances from its own funds to effect such payments (which will constitute a Servicing Advance). 
  
 (ii) The Servicer will maintain in full force and effect
Primary Mortgage Insurance Policies or Lender Primary Mortgage Insurance Policies issued by a Qualified Insurer with respect to each Mortgage Loan for which such coverage is herein required. Such coverage will be terminated only with the approval of
Purchaser, or as required by applicable law or regulation. The Servicer will not cancel or refuse to renew any Primary Mortgage Insurance Policy or Lender Primary Mortgage Insurance Policy in effect on the Closing Date that is required to be kept in
force under this Agreement unless a replacement Primary Mortgage Insurance Policy or Lender Primary Mortgage Insurance Policy for such canceled or nonrenewed policy is obtained from and maintained with a Qualified Insurer. The Servicer shall not
take any action which would result in non-coverage under any applicable Primary Mortgage Insurance Policy or Lender Primary Mortgage Insurance Policy of any loss which, but for the actions of the Servicer would have been covered thereunder. In
connection with any assumption or substitution agreement entered into or to be entered into pursuant to Section 4.04(a), the Servicer shall promptly notify the insurer under the related Primary Mortgage Insurance Policy or Lender Primary Mortgage
Insurance Policy, if any, of such assumption or substitution of liability in accordance with the terms of such policy and shall take all actions which may be required by such insurer as a condition to the continuation of coverage under the Primary
Mortgage Insurance Policy or Lender Primary Mortgage Insurance Policy. If such Primary Mortgage Insurance Policy or Lender Primary Mortgage Insurance Policy is terminated as a result of such assumption or substitution of liability, the Servicer
shall obtain a replacement Primary Mortgage Insurance Policy or Lender Primary Mortgage Insurance Policy as provided above. 
  
 In connection with its activities as servicer, the Servicer agrees to prepare and present, on behalf of itself and the Issuer, claims to the insurer under
any Private Mortgage Insurance Policy in a timely fashion in accordance with the terms of such Primary Mortgage Insurance Policy or Lender Primary Mortgage Insurance Policy and, in this regard, to take such action as shall be necessary to permit
recovery under any Primary Mortgage Insurance Policy or Lender Primary 

  

 52 

 
Mortgage Insurance Policy respecting a defaulted Mortgage Loan. Pursuant to Section 4.02(d), any amounts collected by the Servicer under any Primary Mortgage
Insurance Policy or Lender Primary Mortgage Insurance Policy shall be deposited in the Custodial Account, subject to withdrawal pursuant to Section 4.02(e). 
  
 (i) Protection of Accounts. The Servicer may transfer the Custodial Account or the Escrow Account to a different Eligible Institution from time to
time. Such transfer shall be made only upon obtaining the consent of the Master Servicer, which consent shall not be withheld unreasonably, and the Servicer shall give notice to the Master Servicer and the Indenture Trustee of any change in the
location of the Custodial Account. 
  
 (j) Maintenance
of Hazard Insurance. The Servicer shall cause to be maintained for each Mortgage Loan fire and hazard insurance with extended coverage as is acceptable to Fannie Mae or Freddie Mac and customary in the area where the Mortgaged Property is
located in an amount which is equal to the lesser of (i) the maximum insurable value of the improvements securing such Mortgage Loan or (ii) the greater of (a) the outstanding principal balance of the Mortgage Loan, and (b) an amount such that the
proceeds thereof shall be sufficient to prevent the Mortgagor and/or the mortgagee from becoming a co-insurer. If required by the Flood Disaster Protection Act of 1973, as amended, each Mortgage Loan shall be covered by a flood insurance policy
meeting the requirements of the current guidelines of the Federal Insurance Administration in effect with an insurance carrier acceptable to Fannie Mae or Freddie Mac, in an amount representing coverage not less than the least of (i) the outstanding
principal balance of the Mortgage Loan, (ii) the maximum insurable value of the improvements securing such Mortgage Loan or (iii) the maximum amount of insurance which is available under the Flood Disaster Protection Act of 1973, as amended. If at
any time during the term of the Mortgage Loan, the Servicer determines in accordance with applicable law and pursuant to the Fannie Mae Guides that a Mortgaged Property is located in a special flood hazard area and is not covered by flood insurance
or is covered in an amount less than the amount required by the Flood Disaster Protection Act of 1973, as amended, the Servicer shall notify the related Mortgagor that the Mortgagor must obtain such flood insurance coverage, and if said Mortgagor
fails to obtain the required flood insurance coverage within forty-five (45) days after such notification, the Servicer shall immediately force place the required flood insurance on the Mortgagor’s behalf. The Servicer shall also maintain on
each REO Property, fire and hazard insurance with extended coverage in an amount which is at least equal to the maximum insurable value of the improvements which are a part of such property, and, to the extent required and available under the Flood
Disaster Protection Act of 1973, as amended, flood insurance in an amount as provided above. Any amounts collected by the Servicer under any such policies other than amounts to be deposited in the Escrow Account and applied to the restoration or
repair of the Mortgaged Property or REO Property, or released to the Mortgagor in accordance with Accepted Servicing Practices, shall be deposited in the Custodial Account, subject to withdrawal pursuant to Section 4.02(e). It is understood and
agreed that no other additional insurance need be required by the Servicer of the Mortgagor or maintained on property acquired in respect of the Mortgage Loan, other than pursuant to this Agreement, the Fannie Mae Guides or such applicable state or
federal laws and regulations as shall at any time be in force and as shall require such additional 

  

 53 

 
insurance. All such policies shall be endorsed with standard mortgagee clauses with loss payable to the Servicer and its successors and/or assigns and shall
provide for at least thirty (30) days prior written notice of any cancellation, reduction in the amount or material change in coverage to the Servicer. The Servicer shall not interfere with the Mortgagor’s freedom of choice in selecting either
his insurance carrier or agent, provided, however, that the Servicer shall not accept any such insurance policies from insurance companies unless such companies are Qualified Insurers. 
  
 (k) Maintenance of Mortgage Impairment Insurance. In the event that the Servicer shall obtain and maintain a blanket
policy issued by an insurer acceptable to Fannie Mae or Freddie Mac insuring against hazard losses on all of the Mortgage Loans, then, to the extent such policy provides coverage in an amount equal to the amount required pursuant to Section 4.02(j)
and otherwise complies with all other requirements of Section 4.02(j), it shall conclusively be deemed to have satisfied its obligations as set forth in Section 4.02(j), it being understood and agreed that such policy may contain a deductible
clause, in which case the Servicer shall, in the event that there shall not have been maintained on the related Mortgaged Property or REO Property a policy complying with Section 4.02(j), and there shall have been a loss which would have been
covered by such policy, deposit in the Custodial Account the amount not otherwise payable under the blanket policy because of such deductible clause. In connection with its activities as servicer of the Mortgage Loans, the Servicer agrees to prepare
and present, on behalf of the Master Servicer and the Indenture Trustee, claims under any such blanket policy in a timely fashion in accordance with the terms of such policy. Upon request of the Master Servicer or Indenture Trustee, the Servicer
shall cause to be delivered to the Master Servicer or the Indenture Trustee, as applicable, a certified true copy of such policy and shall use its best efforts to obtain a statement from the insurer thereunder that such policy shall in no event be
terminated or materially modified without thirty (30) days’ prior written notice to the Master Servicer and the Indenture Trustee. 
  
 (l) Maintenance of Fidelity Bond and Errors and Omissions Insurance. The Servicer shall maintain, at its own expense, a blanket fidelity bond and
an errors and omissions insurance policy, with broad coverage with responsible companies on all officers, employees or other persons acting in any capacity with regard to the Mortgage Loan to handle funds, money, documents and papers relating to the
Mortgage Loan. The Servicer Fidelity Bond shall be in the form of the Mortgage Banker’s Blanket Bond and shall protect and insure the Servicer against losses, including forgery, theft, embezzlement and fraud of such persons. The Servicer Errors
and Omissions Insurance Policy shall protect and insure the Servicer against losses arising out of errors and omissions and negligent acts of such persons. Such Servicer Errors and Omissions Insurance Policy shall also protect and insure the
Servicer against losses in connection with the failure to maintain any insurance policies required pursuant to this Agreement and the release or satisfaction of a Mortgage Loan without having obtained payment in full of the indebtedness secured
thereby. No provision of this Section 4.02(l) requiring the Servicer Fidelity Bond or the Servicer Errors and Omissions Insurance Policy shall diminish or relieve the Servicer from its duties and obligations as set forth in this Agreement. The
minimum coverage under any such bond and insurance policy shall be at least equal to the corresponding amounts required by 

  

 54 

 
Fannie Mae in the Fannie Mae Guides. Upon request of the Master Servicer or the Indenture Trustee, the Servicer shall deliver to the Master Servicer and the
Indenture Trustee a certificate from the surety and the insurer as to the existence of the Servicer Fidelity Bond and the Servicer Errors and Omissions Insurance Policy and shall obtain a statement from the surety and the insurer that such Servicer
Fidelity Bond or Servicer Errors and Omissions Insurance Policy shall in no event be terminated or materially modified without thirty (30) days prior written notice to the Master Servicer. The Servicer shall notify the Master Servicer and the
Indenture Trustee within five (5) business days of receipt of notice that such Servicer Fidelity Bond or Servicer Errors and Omissions Insurance Policy will be, or has been, materially modified or terminated. The Issuer must be named as a loss payee
on the Servicer Fidelity Bond and as an additional insured on the Servicer Errors and Omissions Insurance Policy. Upon request by the Master Servicer, the Servicer shall provide the Master Servicer with an insurance certificate certifying coverage
under this Section 4.02(l), and will provide an update to such certificate upon request, or upon renewal or material modification of coverage. 
  
 (m) Inspections. The Servicer shall inspect the Mortgaged Property as often as deemed necessary by the Servicer to assure itself that the value of
the Mortgaged Property is being preserved. In addition, the Servicer shall inspect the Mortgaged Property and/or take such other actions as may be necessary or appropriate in accordance with Accepted Servicing Practices or as may be required by the
primary mortgage guaranty insurer. The Servicer shall keep a written report of each such inspection. 
  
 (n) Restoration of Mortgaged Property. The Servicer need not obtain the approval of the Master Servicer prior to releasing any Insurance Proceeds
or Condemnation Proceeds to the Mortgagor to be applied to the restoration or repair of the Mortgaged Property if such release is in accordance with Accepted Servicing Practices. At a minimum, the Servicer shall comply with the following conditions
in connection with any such release of Insurance Proceeds or Condemnation Proceeds: 
  
 (i) the Servicer shall receive satisfactory independent verification of completion of repairs and issuance of any required approvals with
respect thereto; 
  
 (ii) the Servicer shall take
all steps necessary to preserve the priority of the lien of the Mortgage, including, but not limited to requiring waivers with respect to mechanics’ and materialmen’s liens; and 
  
 (iii) pending repairs or restoration, the Servicer shall
place the Insurance Proceeds or Condemnation Proceeds in the Escrow Account. 
  
 (o) Title, Management and Disposition of REO Property. In the event that title to the Mortgaged Property is acquired in foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale shall be
taken in the name of the Indenture Trustee or its designee, or in the event the Indenture Trustee or its designee is not authorized or permitted to hold title to real property in the state where the REO Property is located, or would be adversely
affected under the 

  

 55 

 
“doing business” or tax laws of such state by so holding title, the deed or certificate of sale shall be taken in the name of such Person or
Persons as shall be consistent with an Opinion of Counsel obtained by the Servicer from an attorney duly licensed to practice law in the state where the REO Property is located. Any Person or Persons holding such title other than the Issuer shall
acknowledge in writing that such title is being held as nominee for the benefit of the Issuer. 
  
 The Servicer shall notify the Master Servicer in accordance with the Fannie Mae Guides of each acquisition of REO Property upon such acquisition (and, in any event, shall provide notice of the consummation of any
foreclosure sale within three (3) Business Days from the date the Servicer receives notice of such consummation), together with a copy of the drive by appraisal or brokers price opinion of the Mortgaged Property obtained in connection with such
acquisition, and thereafter assume the responsibility for marketing such REO property in accordance with Accepted Servicing Practices. Thereafter, the Servicer shall continue to provide certain administrative services to the Master Servicer relating
to such REO Property as set forth in this Section 4.02(o). No Servicing Fee shall be assessed or otherwise accrue on any REO Property from and after the date on which it becomes an REO Property. 
  
 The Servicer shall, either itself or through an agent selected by the
Servicer, and in accordance with the Fannie Mae Guides manage, conserve, protect and operate each REO Property in the same manner that it manages, conserves, protects and operates other foreclosed property for its own account, and in the same manner
that similar property in the same locality as the REO Property is managed. The Servicer shall cause each REO Property to be inspected promptly upon the acquisition of title thereto and shall cause each REO Property to be inspected at least monthly
thereafter or more frequently as required by the circumstances. The Servicer shall make or cause to be made a written report of each such inspection. Such reports shall be retained in the Mortgage File and copies thereof shall be forwarded by the
Servicer to the Master Servicer. 
  
 The Servicer shall use its
best efforts to dispose of the REO Property as soon as possible and shall sell such REO Property in any event within one year after title has been taken to such REO Property, unless the Servicer determines, and gives an appropriate notice to the
Master Servicer to such effect, that a longer period is necessary for the orderly liquidation of such REO Property. If a longer period than one (1) year is permitted under the foregoing sentence and is necessary to sell any REO Property, the
Servicer shall report monthly to the Master Servicer as to the progress being made in selling such REO Property. No REO Property shall be marketed for less than the Appraised Value, without the prior consent of Master Servicer. No REO Property shall
be sold for less than ninety five percent (95%) of its Appraised Value, without the prior consent of Indenture Trustee. All requests for reimbursement of Servicing Advances shall be in accordance with the Fannie Mae Guides. The disposition of REO
Property shall be carried out by the Servicer at such price, and upon such terms and conditions, as the Servicer deems to be in the best interests of the Trust (subject to the above conditions) only with the prior written consent of the Master
Servicer. The Servicer shall provide monthly reports to the Master Servicer in reference to the status of the marketing of the REO Properties. 
  

 56 

 (p) Compliance with Safeguarding Customer Information Requirements. The Servicer has implemented
and will maintain security measures designed to meet the objectives of the Interagency Guidelines Establishing Standards for Safeguarding Customer Information published in final form on February 1, 2001, 66 Fed. Reg. 8616, and the rules promulgated
thereunder, as amended from time to time (the “Guidelines”). 
  
 (q) Notification of Maturity Date. With respect to each Mortgage Loan, the Servicer shall execute and deliver to the Mortgagor any and all necessary notices required under applicable law and the terms of the related Mortgage Note and
Mortgage regarding the maturity date if required under applicable law. 
  
 (r) Purchase of Defaulted Mortgage Loans. The Servicer, in its sole discretion, shall have the right to elect (by written notice sent to the Indenture Trustee, the Master Servicer and the Securities Administrator) to purchase for its
own account from the Trust Estate any Mortgage Loan that is (as of the first day of a calendar quarter) 90 days or more Delinquent or is an REO Property at a price equal to the Purchase Price; provided, however, that (i) such Mortgage Loan is
still 90 days or more delinquent or is an REO Property as of the date of such purchase and (ii) this purchase option, if not theretofore exercised, shall terminate on the date prior to the last day of the related calendar quarter. This purchase
option, if not exercised, shall not be thereafter reinstated unless the delinquency is cured and the Mortgage Loan thereafter again becomes 90 days or more delinquent or becomes an REO Property, in which case the option shall again become
exercisable as of the first day of the related calendar quarter. The principal portion of the funds in respect of such purchase of a Mortgage Loan will be considered a Principal Prepayment and the Purchase Price shall be deposited in the Collection
Account. Upon receipt by the Securities Administrator of the full amount of the Purchase Price for such Mortgage Loan and notification thereof has been made to the Indenture Trustee, the Indenture Trustee shall release or cause to be released and
reassign to the Servicer the related Mortgage File for such Mortgage Loan and shall execute and deliver such instruments of transfer or assignment, in each case without recourse, representation or warranty, as shall be necessary to vest in such
party or its designee or assignee title to any such Mortgage Loan released pursuant hereto, free and clear of all security interests, liens and other encumbrances created by this Agreement and the Indenture, which instruments shall be prepared by
the Servicer and the Indenture Trustee shall have no further responsibility with respect to the Mortgage File relating to such 90 days Delinquent Mortgage Loan purchased by the Servicer. 
  
 Section 4.03. Payments to the Master Servicer. 
  
 (a) Remittances. On each Servicer Remittance Date, the Servicer shall remit by wire transfer of immediately available
funds to the Master Servicer (i) all amounts credited to the Custodial Account as of the close of business on the preceding Determination Date, net of charges against or withdrawals from the Custodial Account pursuant to Section 4.02(e), plus (ii)
all Monthly Advances, if any, which the Servicer is obligated to remit pursuant to Section 4.03(c), plus, (iii) Compensating Interest Payments, minus (iv) any amounts attributable to Monthly Payments collected but due on a Due Date or Dates
subsequent to the preceding 

  

 57 

 
Determination Date, which amounts shall be remitted on the Servicer Remittance Date next succeeding the Collection Period for such amounts. It is understood
that, by operation of Section 4.02(d), the remittance on the first Servicer Remittance Date with respect to the Mortgage Loans is to include principal collected after the Cut- off Date through the preceding Determination Date plus interest, adjusted
to the Net Mortgage Rate collected through such Determination Date exclusive of any portion thereof allocable to the period prior to the Cut-off Date, with the adjustments specified in clauses (ii), (iii) and (iv) above. 
  
 With respect to any remittance received by the Master Servicer after the
Servicer Remittance Date, the Servicer shall pay to the Master Servicer interest on any such late payment at a per annum rate equal to the Prime Rate, adjusted as of the date of each change plus two (2) percentage points, but in no event greater
than the maximum amount permitted by applicable law. Such interest shall cover the period commencing with the day following the Business Day such payment was due and ending with the Business Day on which such payment is made to the Master Servicer,
both inclusive. The payment by the Servicer of any such interest shall not be deemed an extension of time for payment or a waiver of any Event of Default by the Servicer. On each Servicer Remittance Date, the Servicer shall provide a remittance
report detailing all amounts being remitted pursuant to this Section 4.03(a). 
  
 All remittances required to be made to the Master Servicer shall be made to the following wire account or to such other account as may be specified by the Master Servicer from time to time: 
  
 Wells Fargo Bank, NA 
 San Francisco, CA 
 ABA#: 121-000-248 
 Account Name: Corporate Trust Clearing 
 Account Number: 3970771416 
 For further credit to:  17147000, HomeBanc 2005-1 
  
 (b) Statements to Master Servicer and Securities Administrator. The Servicer shall furnish to Master Servicer an individual loan accounting report, as of the last Business Day of each month, in the
Servicer’s assigned loan number order to document Mortgage Loan payment activity on an individual Mortgage Loan basis. With respect to each month, the corresponding individual loan accounting report shall be received by the Master Servicer no
later than the fifth Business Day of the following month on a disk or tape or other computer-readable format in such format as may be mutually agreed upon by both Master Servicer and Servicer, and no later than the fifth Business Day of the
following month in hard copy, and shall contain the following: 
  
 (i) With respect to each Monthly Payment, the amount of such remittance allocable to principal (including a separate breakdown of any Principal Prepayment, including the date of such prepayment, and any prepayment
penalties or premiums, along with a detailed report of interest on principal prepayment amounts remitted in accordance with Section 4.02(d)); 
  

 58 

 (ii) with respect to each Monthly Payment, the amount of such remittance allocable to
interest; 
  
 (iii) the amount of servicing
compensation received by the Servicer during the prior distribution period; 
  
 (iv) the aggregate Scheduled Principal Balance of the Mortgage Loans; 
  
 (v) the aggregate of any expenses reimbursed to the Servicer during the prior distribution period pursuant to Section 4.02(e); and

  
 (vi) The number and aggregate outstanding
principal balances of Mortgage Loans (a) delinquent (1) 30 to 59 days, (2) 60 to 89 days, (3) 90 days or more; (b) as to which foreclosure has commenced; and (c) as to which REO Property has been acquired. 
  
 The Servicer shall provide a monthly remittance report to the Master Servicer
in a mutually agreeable format. The Servicer shall also provide a default report containing the information specified in Exhibit F attached hereto with each such report. 
  
 The Servicer shall prepare and file any and all information statements or other filings required to be delivered to any
governmental taxing authority or to the Master Servicer and the Securities Administrator pursuant to any applicable law with respect to the Mortgage Loans and the transactions contemplated hereby. In addition, the Servicer shall provide the Master
Servicer and the Securities Administrator with such information as may be requested by it and required for the completion of any tax reporting responsibility of the Securities Administrator within such reasonable time frame as shall enable the
Securities Administrator to timely file each Schedule Q (or other applicable tax report or return) required to be filed by it. 
  
 (c) Monthly Advances by Servicer. Not later than the close of business on the Business Day preceding each Servicer Remittance Date, the Servicer
shall deposit in the Custodial Account an amount equal to all payments not previously advanced by the Servicer, whether or not deferred pursuant to Section 4.03(a), of principal (due after the Cut-off Date) and interest not allocable to the period
prior to the Cut-off Date, adjusted to the Net Mortgage Rate, which were due on a Mortgage Loan and delinquent at the close of business on the related Determination Date; provided, however, that the Servicer may use the Amount Held for Future
Distribution (as defined below) then on deposit in the Custodial Account to make such Monthly Advances. The Servicer shall deposit any portion of the Amount Held for Future Distribution used to pay Monthly Advances into the Custodial Account on any
future Servicer Remittance Date to the extent that the funds that are available in the Custodial Account for remittance to the Master Servicer on such Servicer Remittance Date are less than the amount of payments required to be made to the Master
Servicer on such Servicer Remittance Date. 
  
 The “Amount
Held for Future Distribution” as to any Servicer Remittance Date shall be the total of the amounts held in the Custodial Account at the close of business on the preceding 

  

 59 

 
Determination Date which were received after the Cut-off Date on account of (i) Liquidation Proceeds, Insurance Proceeds, Condemnation Proceeds and Principal
Prepayments received or made in the month of such Servicer Remittance Date, and (ii) payments which represent early receipt of Monthly Payments of principal and interest due on a date or dates subsequent to the related Due Date. 
  
 The Servicer’s obligation to make such Monthly Advances as to any
Mortgage Loan will continue through the last Monthly Payment due prior to the payment in full of the Mortgage Loan, or through the Servicer Remittance Date prior to the date on which the Mortgaged Property liquidates (including Insurance Proceeds,
proceeds from the sale of REO Property or Condemnation Proceeds) with respect to the Mortgage Loan unless the Servicer deems such advance to be a Nonrecoverable Advance. In such event, the Servicer shall deliver to the Master Servicer an
Officer’s Certificate of the Servicer to the effect that an officer of the Servicer has reviewed the related Mortgage File and has made the reasonable determination that any additional advances are nonrecoverable. 
  
 (d) Liquidation Reports. Upon the foreclosure sale of any Mortgaged
Property or the acquisition thereof by the Indenture Trustee pursuant to a deed in lieu of foreclosure, the Servicer shall submit to the Indenture Trustee and the Master Servicer a monthly liquidation report with respect to such Mortgaged Property.
The Servicer shall also provide reports on the status of REO Property containing such information as the Indenture Trustee may reasonably request. 
  
 (e) Credit Reporting. For each Mortgage Loan, in accordance with its current servicing practices, the Servicer will accurately and fully report its
underlying borrower credit files to each of the following credit repositories or their successors: Equifax Credit Information Services, Inc., Trans Union, LLC and Experian Information Solution, Inc., on a monthly basis in a timely manner.

  
 Section 4.04. General Servicing Procedures. 

 
 (a) Transfers of Mortgaged Property. The Servicer will, to the
extent it has actual knowledge of any conveyance or prospective conveyance by any Mortgagor of the Mortgaged Property (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 any “due-on-sale” clause to the extent permitted by law; provided, however, that the Servicer shall not exercise any such rights
if prohibited by law or the terms of the Mortgage Note from doing so or if the exercise of such rights would impair or threaten to impair any recovery under the related Primary Mortgage Insurance Policy or Lender Primary Mortgage Insurance Policy,
if any. If the Servicer reasonably believes it is unable under applicable law to enforce such “due-on- sale” clause, the Servicer will enter into an assumption agreement with the person to whom the Mortgaged 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. Where an assumption is allowed pursuant to this Section

  

 60 

 
4.04(a), the Servicer, with the prior consent of the Master Servicer, the Indenture Trustee and the primary mortgage insurer, if any, is authorized to enter
into a substitution of liability agreement with the person to whom the Mortgaged Property has been conveyed or is proposed to be conveyed pursuant to which the original mortgagor is released from liability and such Person is substituted as mortgagor
and becomes liable under the related Mortgage Note. Any such substitution of liability agreement shall be in lieu of an assumption agreement. 
  
 In connection with any such assumption or substitution of liability, the Servicer shall follow the underwriting practices and procedures of the Servicer.
With respect to an assumption or substitution of liability, the Mortgage Rate borne by the related Mortgage Note, the amount of the Monthly Payment and the maturity date may not be changed (except pursuant to the terms of the Mortgage Note). If the
credit of the proposed transferee does not meet such underwriting criteria, the Servicer diligently shall, to the extent permitted by the Mortgage or the Mortgage Note and by applicable law, accelerate the maturity of the Mortgage Loan. The Servicer
shall notify the Master Servicer and the Indenture Trustee that any such substitution of liability or assumption agreement has been completed and shall forward to the Custodian the original of any such substitution of liability 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. All fees collected
by the Servicer for entering into an assumption or substitution of liability agreement shall belong to the Servicer. 
  
 Notwithstanding the foregoing paragraphs of this Section or any other provision of this Agreement, the Servicer shall not be deemed to be in default,
breach or any other violation of its obligations hereunder by reason of any assumption of a Mortgage Loan by operation of law or any assumption which the Servicer may be restricted by law from preventing, for any reason whatsoever. For purposes of
this Section 4.04(a), 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. 
  
 (b) Satisfaction of Mortgages and Release of Mortgage Files. Upon the
payment in full of any Mortgage Loan, or the receipt by the Servicer of a notification that payment in full will be escrowed in a manner customary for such purposes, the Servicer shall immediately notify the Master Servicer by a certification of a
Servicing Officer, 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 Custodial Account pursuant to Section 4.02(d) have
been or will be so deposited, and shall request delivery to it of the portion of the Mortgage File held by the Custodian. Upon receipt of such notification, the Master Servicer shall notify the Indenture Trustee (or the Custodian) in accordance with
the provisions of Section 5.12. 
  
 In the event the Servicer
satisfies or releases a Mortgage without having obtained payment in full of the indebtedness secured by the Mortgage or should it otherwise prejudice any right the Trust may have under the mortgage instruments, the Servicer, upon written demand,
shall remit within two (2) Business Days to the Trust the then outstanding principal balance of 

  

 61 

 
the related Mortgage Loan by deposit thereof in the Custodial Account. The Servicer shall maintain the Servicer Fidelity Bond and the Servicer Errors and
Omissions Insurance Policy insuring the Servicer against any loss it may sustain with respect to any Mortgage Loan not satisfied in accordance with the procedures set forth herein. 
  
 (c) Servicing Compensation. As compensation for its services hereunder, the Servicer shall be entitled to withdraw
from the Custodial Account (to the extent of interest payments collected on the Mortgage Loans) or to retain from interest payments collected on the Mortgage Loans, the Servicing Fee, subject to Compensating Interest Payments. Additional servicing
compensation in the form of assumption fees, as provided in Section 4.04(a), and late payment charges or otherwise shall be retained by the Servicer to the extent not required to be deposited in the Custodial Account. No Servicing Fee shall be
payable in connection with partial Monthly Payments. The Servicer shall be required to pay all expenses incurred by it in connection with its servicing activities hereunder and shall not be entitled to reimbursement therefor except as specifically
provided for in this Agreement. 
  
 (d) Annual Audit
Report. On or before February 28th of each year beginning February 28, 2006, the Servicer at its expense shall
cause a firm of independent public accountants which is a member of the American Institute of Certified Public Accountants to furnish a statement to the Seller, the Master Servicer, the Indenture Trustee and the Depositor in a form acceptable for
filing with the Securities and Exchange Commission as an exhibit to a Form 10-K to the effect that such firm has examined certain documents and records relating to the Servicer’s servicing of mortgage loans of the same type as the Mortgage
Loans pursuant to servicing agreements substantially similar to this Agreement, which agreements may include this Agreement, and that, on the basis of such an examination, conducted substantially in the Uniform Single Audit Program for Mortgage
Bankers, such firm is of the opinion that the Servicer’s servicing has been conducted in compliance with the agreements examined pursuant to this Section 4.04(d), except for (i) such exceptions as such firm shall believe to be immaterial, and
(ii) such other exceptions as shall be set forth in such statement. In addition, on an annual basis, Servicer shall provided the Seller, the Master Servicer, the Indenture Trustee and the Depositor with copies of its audited financial statements.

  
 (e) Annual Compliance Certifications. 
  
 (i) On or before February 28th of each year beginning February 28, 2006, the Servicer shall deliver to the Seller, the Master Servicer, the Indenture Trustee
and the Depositor a servicer’s certificate stating, as to each signer thereof, that (i) a review of the activities of the Servicer during such preceding fiscal 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 its obligations under this Agreement for such year, or, if there has been a default in the fulfillment of any such obligation,
specifying each such default known to such officers and the nature and status thereof, including the steps being taken by the Servicer to remedy such default. 
  

 62 

 (ii) For so long as a certificate under the Sarbanes-Oxley Act of 2002, as amended is
required to be delivered on behalf of the Trust, a Servicing Officer shall execute and deliver on or prior to February 28th of each applicable year, commencing in 2006, or at any other time upon thirty (30) days written request, an Officer’s Certificate to the Depositor for the benefit of the Depositor and its officers, directors and affiliates,
certifying as to the following matters: 
  
 (1)
Based on my knowledge, the information in the Annual Statement of Compliance, the Annual Independent Public Accountant’s Servicing Report and all servicing reports, officer’s certificates and other information relating to the servicing of
the Mortgage Loans submitted to the Master Servicer taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading as of the date of this certification; 
  
 (2) The servicing information required to be provided to the Master Servicer by the Servicer under this Agreement has been provided to the Master Servicer; 
  
 (3) I am responsible for reviewing the activities performed
by the Servicer under the Agreement and based upon the review required by this Agreement, and except as disclosed in the Annual Statement of Compliance or the Annual Independent Public Accountant’s Servicing Report submitted to the Master
Servicer, the Servicer has, as of the date of this certification fulfilled its obligations under this Agreement; and 
  
 (4) I have disclosed to the Master Servicer all significant deficiencies relating to the Servicer’s compliance with the minimum
servicing standards in accordance with a review conducted in compliance with the Uniform Single Attestation Program for Mortgage Bankers or similar standard as set forth in the Agreement. 
  
 (iii) The Servicer shall indemnify and hold harmless the
Issuer, the Depositor and the Master Servicer and their respective officers, directors, agents and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable legal fees and related costs, judgments and other costs and
expenses arising out of or based upon a breach by the Servicer or any of its officers, directors, agents or affiliates of its obligations under this Section 4.04(e) for the negligence, bad faith or willful misconduct of the Servicer in connection
therewith. If the indemnification provided for herein is unavailable or insufficient to hold harmless any of the foregoing parties, then the Servicer agrees that it shall contribute to the amount paid or payable by the indemnified party or parties
as a result of the losses, claims, damages or liabilities of the indemnified party or parties in such proportion as is appropriate to reflect the relative fault of the 

  

 63 

 
indemnified party or parties on the one hand and the Servicer on the other in connection with a breach of the Servicer’s obligations under this Section
4.04(e) or the Servicer’s negligence, bad faith or willful misconduct in connection therewith. 
  
 Section 4.05. Representations, Warranties and Agreements. 
  

(a) Representations, Warranties and Agreements of the Servicer. The Servicer, as a condition to the consummation of the transactions
contemplated hereby, hereby makes the following representations and warranties to the Master Servicer, the Depositor, the Seller, the Indenture Trustee and the Securities Administrator, as of the Closing Date: 
  
 (i) Due Organization and Authority. The Servicer is a
corporation duly organized, validly existing and in good standing under the laws of the State of Georgia and has all licenses necessary to carry out its business as now being conducted; the Servicer has the full power and authority and legal right
to execute, deliver and perform, and to enter into and consummate all transactions contemplated by this Agreement and to conduct its business as presently conducted, has duly authorized the execution, delivery and performance of this Agreement and
any agreements contemplated hereby, has duly executed and delivered this Agreement and any agreements contemplated hereby, and this Agreement and any agreements contemplated hereby, constitutes a legal, valid and binding obligation of the Servicer,
enforceable against it in accordance with its terms, and all requisite corporate action has been taken by the Servicer to make this Agreement and all agreements contemplated hereby valid and binding upon the Servicer in accordance with their terms;

  
 (ii) Ordinary Course of Business. The
consummation of the transactions contemplated by this Agreement are in the ordinary course of business of the Servicer; 
  
 (iii) No Conflicts. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated
hereby, or the fulfillment of or compliance with the terms and conditions of this Agreement will conflict with any of the terms, conditions or provisions of the Servicer’s charter or by-laws or materially conflict with or result in a material
breach of any of the terms, conditions or provisions of any legal restriction or any agreement or instrument to which the Servicer is now a party or by which it is bound, or constitute a default or result in an acceleration under any of the
foregoing, or result in the material violation of any law, rule, regulation, order, judgment or decree to which the Servicer or their properties are subject; 
  

(iv) Ability to Perform. 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; 
  
 (v) No Litigation Pending. There is no litigation, suit, proceeding or investigation pending or, to the best of the Servicer’s knowledge, threatened, or any order 

  

 64 

 
or decree outstanding, with respect to the Servicer which, either in any one instance or in the aggregate, is reasonably likely to have a material adverse
effect on the sale of the Mortgage Loans, the execution, delivery, performance or enforceability of this Agreement, or which is reasonably likely to have a material adverse effect on the financial condition of the Servicer; 
  
 (vi) No Consent Required. No consent, approval,
authorization or order of any court or governmental agency or body is required for the execution, delivery and performance by the Servicer of or compliance by the Servicer with this Agreement, or if required, such approval has been obtained prior to
the Closing Date; 
  
 (vii) Servicing
Practices. The servicing practices used by the Servicer have been legal and in accordance with applicable laws and regulations and the mortgage loan documents, and in all material respects proper and prudent in the mortgage servicing business.
Each Mortgage Loan has been serviced in all material respects with Accepted Servicing Practices. With respect to escrow deposits and payments that the Servicer, on behalf of the Trust, is entitled to collect, all such payments are in the possession
of, or under the control of, the Servicer, and there exist no deficiencies in connection therewith for which customary arrangements for repayment thereof have not been made. All escrow payments have been collected in full compliance with state and
federal law and the provisions of the related Mortgage Note and Mortgage. As to any Mortgage Loan that is the subject of an escrow, escrow of funds is not prohibited by applicable law and has been established. No escrow deposits or other charges or
payments due under the Mortgage Note have been capitalized under any Mortgage or the related Mortgage Note; 
  
 (viii) Ability to Service. The Servicer is equipped with such facilities, procedures and personnel necessary for the sound
servicing of such mortgage loans. The Servicer is duly qualified, licensed, registered and otherwise authorized under all applicable federal, state and local laws, and regulations, if applicable, and is in good standing to sell mortgage loans to and
service mortgage loans for Fannie Mae and Freddie Mac and no event has occurred which would make Servicer unable to comply with eligibility requirements or which would require notification to either Fannie Mae or Freddie Mac; 
  
 (ix) Servicing Fee. The Servicer acknowledges and
agrees that the Servicing Fee represents reasonable compensation for performing such services and that the entire Servicing Fee shall be treated by the Servicer, for accounting and tax purposes, as compensation for the servicing and administration
of the Mortgage Loans pursuant to this Agreement; and 
  
 (x) No Commissions to Third Parties. The Servicer has not dealt with any broker or agent or anyone else who might be entitled to a fee or commission in connection with this transaction other than the Seller. 
  

 65 

 (b) Remedies for Breach of Representations and Warranties of the Servicer. It is understood and
agreed that the representations and warranties set forth in Sections 4.05(a) shall survive the engagement of the Servicer to perform the servicing responsibilities as of the Closing Date hereunder and the delivery of the Servicing Files to the
Servicer and shall inure to the benefit of the Master Servicer and the Indenture Trustee. Upon discovery by either the Servicer, the Master Servicer or the Indenture Trustee of a breach of any of the foregoing representations and warranties which
materially and adversely affects the ability of the Servicer to perform its duties and obligations under this Agreement or otherwise materially and adversely affects the value of the Mortgage Loans, the Mortgaged Property or the priority of the
security interest on such Mortgaged Property or the interests of the Master Servicer or the Indenture Trustee, the party discovering such breach shall give prompt written notice to the other parties. 
  
 Within sixty (60) days of the earlier of either discovery by or notice to the
Servicer of any breach of a representation or warranty set forth in Section 4.05(a) which materially and adversely affects the ability of the Servicer to perform its duties and obligations under this Agreement or otherwise materially and adversely
affects the value of the Mortgage Loans, the Mortgaged Property or the priority of the security interest on such Mortgaged Property, the Servicer shall use its best efforts promptly to cure such breach in all material respects and, if such breach
cannot be cured, the Servicer shall, at the Master Servicer’s option, assign its rights and obligations under this Agreement (or respecting the affected Mortgage Loans) to a successor servicer. 
  
 In addition, the Servicer shall indemnify all other parties to this Agreement
and hold each of them harmless against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments, and other costs and expenses resulting from any claim, demand, defense or assertion based on
or grounded upon, or resulting from, a breach of the Servicer’s representations and warranties contained in Section 4.05(a). 
  
 Any cause of action against the Servicer relating to or arising out of the breach of any representations and warranties made in Section 4.05(a) shall
accrue upon (i) discovery of such breach by the Servicer or notice thereof by the Master Servicer or the Indenture Trustee to the Servicer, (ii) failure by the Servicer to cure such breach within the applicable cure period, and (iii) demand upon the
Servicer by the Master Servicer or the Indenture Trustee for compliance with this Agreement. 
  
 (c) Additional Indemnification by the Servicer. The Servicer shall indemnify the Master Servicer, the Issuer, the Indenture Trustee, and the Securities Administrator and hold each of them harmless against any
and all claims, losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments, and any other costs, fees and expenses (collectively, the “Liabilities”) that the indemnified party may
sustain in any way related to the failure of the Servicer to perform its duties and service the Mortgage Loans in accordance with the terms of this Agreement. The Servicer shall immediately notify the Master Servicer, the Indenture Trustee and the
Securities Administrator if a claim is made by a third party with respect to this Agreement or the Mortgage Loans that may result in such Liabilities, 

  

 66 

 
and the Servicer shall assume (with the prior written consent of the indemnified party) the defense of any such claim and pay all expenses in connection
therewith, including counsel fees, promptly pay, discharge and satisfy any judgment or decree which may be entered against it or any indemnified party in respect of such claim and follow any written instructions received from such indemnified party
in connection with such claim. The Servicer shall be reimbursed promptly from the Custodial Account for all amounts advanced by it pursuant to the preceding sentence except when the claim is in any way related to the Servicer’s indemnification
pursuant to this Section 4.05(c), the failure of the Servicer to service and administer the Mortgage Loans in accordance with the terms of this Agreement, the breach of a representation or warranty set forth in Section 4.05(a) or the gross
negligence, bad faith or willful misconduct of the Servicer. 
  
 Section 4.06. The Servicer. 
  
 (a) Merger or
Consolidation of the Servicer. The Servicer shall keep in full effect its existence, rights and franchises as a corporation under the laws of the state of its incorporation except as permitted herein, and shall obtain and preserve its
qualification to do business as a foreign corporation in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Agreement, or any of the Mortgage Loans and to perform its duties
under this Agreement. 
  
 Any Person into which the Servicer may
be merged or consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Servicer shall be a party, or any Person succeeding to the business of the Servicer whether or not related to loan servicing, shall be
the successor of the Servicer hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding; provided, however, that the successor or surviving
Person, or the parent company of such successor or surviving Person, shall be an institution (i) having a generally accepted accounting principals (“GAAP”) net worth not less than $25,000,000, (ii) which is a HUD-approved mortgagee whose
primary business is in origination and servicing of first lien mortgage loans, and (iii) who is a Fannie Mae or Freddie Mac approved seller/servicer in good standing; provided, however, that if such successor or surviving Person does not have a GAAP
net worth of at least $25,000,000, the parent company of such successor or surviving Person shall act as guarantor with respect to such successor’s obligations under this Agreement. 
  
 (b) Limitation on Liability of the Servicer and Others. Neither the Servicer nor any of the directors, officers,
employees or agents of the Servicer shall be under any liability to the Master Servicer, the Depositor, the Issuer, the Indenture Trustee or the Securities Administrator for any action taken or for refraining from the taking of any action in good
faith pursuant to this Agreement, or for errors in judgment; provided, however, that this provision shall not protect the Servicer or any such person against any breach of warranties or representations made herein, or failure to perform its
obligations in strict compliance with any standard of care set forth in this Agreement, or any liability which would otherwise be imposed by reason of any breach of the terms and conditions of this Agreement (except to the extent otherwise covered
by Section 4.05(c)). The Servicer and any director, officer, employee or agent of the Servicer may rely in 

  

 67 

 
good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder. The Servicer shall
not be under any obligation to appear in, prosecute or defend any legal action which is not incidental to its duties to service the Mortgage Loans in accordance with this Agreement and which in its opinion may involve it in any expense or liability;
provided, however, that the Servicer 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. In such event, the Servicer shall be entitled to
reimbursement from the Custodial Account for the reasonable legal expenses and costs of such action. 
  
 The Servicer and any director, officer, employee or agent of the Servicer shall be indemnified and held harmless by the Trust against any and all
Liabilities incurred in connection with any legal action relating to this Agreement or the Notes, except to the extent such Liabilities resulted from or arose out of the negligence, bad faith or willful misfeasance in the performance of the
Servicer’s (or any director, officer, employee or agent of the Servicer) duties hereunder or by reason of its reckless disregard of its obligations and duties hereunder. 
  
 (c) Limitation on Resignation and Assignment by the Servicer. The Servicer shall not assign this Agreement or resign
from the obligations and duties hereby imposed on it except by mutual consent of the Servicer and the Master Servicer or upon the determination that its duties hereunder are no longer permissible under applicable law and such incapacity cannot be
cured by the Servicer. Any such determination permitting the resignation of the Servicer shall be evidenced by an Opinion of Counsel to such effect delivered to the Seller, the Master Servicer and the Indenture Trustee, which Opinion of Counsel
shall be in form and substance acceptable to each of them. No such resignation shall become effective until a successor shall have assumed the Servicer’s responsibilities and obligations hereunder in the manner provided in Section 4.08.

  
 With respect to the retention of the Servicer to service the
Mortgage Loans hereunder, the Servicer acknowledges that the Seller, Master Servicer and Indenture Trustee have acted in reliance upon the Servicer’s independent status, the adequacy of its servicing facilities, plan, personnel, records and
procedures, its integrity, reputation and financial standing and the continuance thereof. Without in any way limiting the generality of this Section, the Servicer shall not either assign this Agreement or the servicing hereunder or delegate its
rights or duties hereunder or any portion thereof, or sell or otherwise dispose of all or substantially all of its property or assets, other than in the normal course of business, without the prior written approval of the Seller, the Master Servicer
and the Indenture Trustee, which consent shall not be unreasonably withheld; provided that the Servicer may assign the Agreement and the servicing hereunder without the consent of the Seller, the Master Servicer and the Indenture Trustee to
an affiliate of the Servicer to which all servicing of the Servicer is assigned so long as (i) such affiliate is a Fannie Mae and Freddie Mac approved servicer and (ii) if it is intended that such affiliate be spun off to the shareholders of the
Servicer, such affiliate has a GAAP net worth of at least $25,000,000 and (iii) such affiliate shall deliver to the Seller, the Master Servicer and the Indenture Trustee a certification pursuant to which such affiliate shall agree to be bound by the
terms and conditions of this Agreement and shall certify that such affiliate is a Fannie Mae and Freddie Mac approved servicer in good standing. 
  

 68 

 Without in any way limiting the generality of this Section 4.06(c), in the event that the Servicer shall
assign this Agreement or the servicing responsibilities hereunder or delegate its duties hereunder or any portion thereof without (i) satisfying the requirements set forth herein or (ii) the prior written consent of the then such parties shall have
the right to terminate this Agreement, without any payment of any penalty or damages and without any liability whatsoever to the Servicer (other than with respect to accrued but unpaid Servicing Fees and Servicing Advances remaining unpaid) or any
third party. Nothing in this Section shall restrict the right of the Servicer to cause the Mortgage Loans to be subserviced as provided in this Agreement. 
  
 (d) Successor Servicers. The provisions of Sections 4.06(a), (b) and (c) shall apply to any successor to the Servicer hereunder. 

 
 Section 4.07. Termination for Cause. 
  
 Any of the following occurrences shall constitute an event of default (each,
a “Servicer Event of Default”) on the part of the Servicer: 
  
 (i) any failure by the Servicer to remit to the Master Servicer any payment required to be made under the terms of this Agreement which continues unremedied for a period of one (1) Business Day; or 
  
 (ii) failure by the Servicer duly to observe or perform in
any material respect any other of the covenants or agreements on the part of the Servicer set forth in this Agreement (other than Sections 4.04(d) and 4.04(e)) 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 Servicer by the Master Servicer and the remedial period provided for herein has expired; or 
  
 (iii) the Servicer ceases to be qualified to transact
business in any jurisdiction where it is currently so qualified, but only to the extent such non-qualification materially and adversely affects the Servicer’s ability to perform its obligations hereunder; or 
  
 (iv) 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, including bankruptcy, 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 or unstayed for a period of sixty (60) days; or 
  
 (v) the Servicer shall consent to the appointment of a
conservator or receiver or liquidator 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 

 

 69 

 (vi) the Servicer shall admit in writing its inability to pay its debts 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, voluntarily suspend payment of its obligations; or 
  
 (vii) the Servicer ceases to be approved by either Fannie
Mae or Freddie Mac as a mortgage loan seller or servicer for more than thirty (30) days; or 
  
 (viii) the Servicer attempts to assign its right to servicing compensation hereunder or the Servicer attempts, without the consent of the
Master Servicer, to sell or otherwise dispose of all or substantially all of its property or assets or to assign this Agreement or the servicing responsibilities hereunder or to delegate its duties hereunder or any portion thereof; or 
  
 (ix) the Servicer fails to meet the eligibility criteria set
forth in the last sentence of Section 4.06(a); or 
  
 (x) failure by the Servicer to duly perform, within the required time period, its obligations under Sections 4.04(d) or 4.04(e) which failure continues unremedied for a period of fifteen (15) days after the date on which written notice of
such failure, requiring the same to be remedied, shall have been given to the Servicer by the Master Servicer. 
  
 Then, and in each and every such case, so long as an Event of Default shall not have been remedied, the Master Servicer, by notice in writing to the
Servicer, in addition to whatever rights the Master Servicer may have under Sections 3.03 and 4.05(c) and at law or equity or to damages, including injunctive relief and specific performance, may, and shall, if so directed by the Majority
Noteholders, terminate all the rights and obligations of the Servicer under this Agreement and in and to the Mortgage Loans and the proceeds thereof without compensating the Servicer for the same. On or after the receipt by the Servicer of such
written notice, all authority and power of the Servicer under this Agreement, whether with respect to the Mortgage Loans or otherwise, shall pass to and be vested in the successor appointed pursuant to Section 4.08. Upon written request from the
Master Servicer, the Servicer shall prepare, execute and deliver, any and all documents and other instruments, place in such successor’s possession all Mortgage Files, and do or accomplish all other acts or things necessary or appropriate to
effect the purposes of such notice of termination, whether to complete the transfer and endorsement or assignment of the Mortgage Loans and related documents, or otherwise, at the Servicer’s sole expense. The Servicer agrees to cooperate with
the Master Servicer and such successor in effecting the termination of the Servicer’s responsibilities and rights hereunder, including, without limitation, the transfer to such successor for administration by it of all cash amounts which shall
at the time be credited by the Servicer to the Custodial Account or Escrow Account or thereafter received with respect to the Mortgage Loans or any REO Property. 
  
 By a written notice, the Master Servicer may waive any default by the Servicer in the performance of its obligations
hereunder and its consequences. Upon any waiver of a past 

  

 70 

 
default, such default shall cease to exist, and any Event of Default 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 thereon except to the extent expressly so waived. 
  
 Section 4.08. Successor to Servicer. Prior to termination of the Servicer’s responsibilities and duties under this Agreement pursuant to
Sections 4.06(c), 4.07 and 5.10, the Master Servicer shall (i) succeed to and assume all of the Servicer’s responsibilities, rights, duties and obligations under this Agreement, or (ii) appoint a successor having the characteristics set forth
in Section 4.06(a) hereof and which shall succeed to all rights and assume all of the responsibilities, duties and liabilities of the Servicer under this Agreement prior to the termination of the Servicer’s responsibilities, duties and
liabilities under this Agreement. In connection with such appointment and assumption, the Master Servicer may make such arrangements for the compensation of such successor out of payments on Mortgage Loans as the Master Servicer and such successor
shall agree. In the event that the Servicer’s duties, responsibilities and liabilities under this Agreement should be terminated pursuant to the aforementioned Sections, the Servicer shall discharge such duties and responsibilities during the
period from the date it acquires knowledge of such termination until the effective date thereof with the same degree of diligence and prudence which it is obligated to exercise under this Agreement, and shall take no action whatsoever that might
impair or prejudice the rights or financial condition of its successor. The resignation or removal of the Servicer pursuant to the aforementioned Sections shall not become effective until a successor shall be appointed pursuant to this Section and
shall in no event relieve the Servicer of the representations and warranties made pursuant to Section 4.05(a) and the remedies available to the Master Servicer and the Indenture Trustee under Sections 4.05(b) and 4.05(c), it being understood and
agreed that the provisions of such Sections 4.05(a), 4.05(b) and 4.05(c) shall be applicable to the Servicer notwithstanding any such resignation or termination of the Servicer, or the termination of this Agreement. 
  
 Any successor appointed as provided herein shall execute, acknowledge and
deliver to the Servicer and to the Master Servicer an instrument accepting such appointment, whereupon such successor shall become fully vested with all the rights, powers, duties, responsibilities, obligations and liabilities of the Servicer, with
like effect as if originally named as a party to this Agreement. Any termination or resignation of the Servicer or this Agreement pursuant to Section 4.06(c), 4.07 or 5.10 shall not affect any claims that the Master Servicer may have against the
Servicer arising prior to any such termination or resignation. 
  
 The Servicer shall promptly deliver to the successor the funds in the Custodial Account and the Escrow Account and the Mortgage Files and related documents and statements held by it hereunder and the Servicer shall account for all funds.
The Servicer shall execute and deliver such instruments and do such other things all as may reasonably be required to more fully and definitely vest and confirm in the successor all such rights, powers, duties, responsibilities, obligations and
liabilities of the Servicer. Within ten (10) Business Days of the execution and delivery of such instruments, the successor shall reimburse the Servicer for unrecovered 

  

 71 

 
Servicing Advances which the successor retains hereunder and which would otherwise have been recovered by the Servicer pursuant to this Agreement but for the
appointment of the successor servicer. 
  
 Upon a successor’s
acceptance of appointment as such, the Servicer shall notify by mail the Indenture Trustee, the Master Servicer, the Securities Administrator, the Seller and the Depositor of such appointment. 
  
 Section 4.09. Subservicers and Subservicing Agreements. 
  
 (a) The Mortgage Loans may be subserviced by a subservicer on behalf of the
Servicer provided that the subservicer is an entity that engages in the business of servicing loans, and in either case shall be authorized to transact business, and licensed to service mortgage loans, 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 subservicer to perform its obligations hereunder and under the related subservicing Agreement, and in either case shall be a Freddie
Mac or Fannie Mae approved mortgage servicer in good standing, and no event has occurred, including but not limited to a change in insurance coverage, which would make it unable to comply with the eligibility requirements for lenders imposed by
Fannie Mae or for seller/servicers imposed by Fannie Mae or Freddie Mac, or which would require notification to Fannie Mae or Freddie Mac. In addition, each Subservicer will obtain and preserve its qualifications to do business as a foreign
corporation and its licenses to service mortgage loans, in each jurisdiction in which such qualifications and/or licenses are or shall be necessary to protect the validity and enforceability of this Agreement, or any of the Mortgage Loans and to
perform or cause to be performed its duties under the related subservicing Agreement. The Servicer may perform any of its servicing responsibilities hereunder or may cause the subservicer to perform any such servicing responsibilities on its behalf,
but the use by the Servicer of the subservicer shall not release the Servicer from any of its obligations hereunder and the Servicer shall remain responsible hereunder for all acts and omissions of the subservicer as fully as if such acts and
omissions were those of the Servicer. The Servicer shall pay all fees and expenses of the subservicer from its own funds, and the subservicer’s fee shall not exceed the Servicing Fee. Servicer shall notify the master Servicer promptly in
writing upon the appointment of any subservicer. 
  
 (b) At the
cost and expense of the Servicer, without any right of reimbursement from the Custodial Account, the Servicer shall be entitled to terminate the rights and responsibilities of the subservicer and arrange for any servicing responsibilities to be
performed by a successor subservicer meeting the requirements in the preceding paragraph, provided, however, that nothing contained herein shall be deemed to prevent or prohibit the Servicer, at the Servicer’s option, from electing to service
the Mortgage Loans itself. In the event that the Servicer’s responsibilities and duties under this Agreement are terminated and if requested to do so by the Master Servicer, the Servicer shall at its own cost and expense terminate the rights
and responsibilities of the subservicer effective as of the date of termination of the Servicer. The Servicer shall pay all fees, expenses or penalties necessary in order to terminate the rights and responsibilities of the subservicer from the
Servicer’s own funds without reimbursement from the Trust Estate. 
  

 72 

 (c) Any subservicing agreement and any other transactions or services relating to the Mortgage Loans
involving a subservicer shall be deemed to be between the subservicer and the Servicer alone and the Master Servicer and the Indenture Trustee shall not be deemed parties thereto and shall have no claims, rights, obligations, duties or liabilities
with respect to any subservicer, except that the Indenture Trustee shall have such claims or rights that arise as a result of any funds held by a subservicer in trust for or on behalf of the Issuer. Notwithstanding the execution of any subservicing
agreement, the Servicer shall not be relieved of any liability hereunder and shall remain obligated and liable for the servicing and administration of the Mortgage Loans. . 
  
 (d) Any subservicing agreement and any other transactions or services relating to the Mortgage Loans involving the
subservicer shall be deemed to be between the subservicer and Servicer alone, and none of the Master Servicer, the Indenture Trustee, the Depositor or the Issuer shall have no obligations, duties or liabilities with respect to the subservicer
including no obligation, duty or liability of such parties to pay the subservicer’s fees and expenses. For purposes of distributions and advances by the Servicer pursuant to this Agreement, the Servicer shall be deemed to have received a
payment on a Mortgage Loan when the subservicer has received such payment. 
  
 ARTICLE V 
  
 ADMINISTRATION AND
MASTER SERVICING OF MORTGAGE LOANS 
 BY THE MASTER SERVICER AND THE SECURITIES ADMINISTRATOR 
  
 Section 5.01. Duties of the Master Servicer; Representations and
Warranties.  
  
 (a) For and on behalf of the Issuer,
the Indenture Trustee and the Noteholders, the Master Servicer shall master service the Mortgage Loans from and after the Closing Date in accordance with the provisions of this Article V. The Master Servicer hereby represents and warrants to the
Depositor, the Issuer, the Indenture Trustee, the Securities Administrator and the Servicer, as of the Closing Date, that: 
  
 (i) it is validly existing and in good standing as a federally chartered national banking association and as Master Servicer has full
power and authority to transact any and all business contemplated by this Agreement and to execute, deliver and comply with its obligations under the terms of this Agreement, the execution, delivery and performance of which have been duly authorized
by all necessary corporate action on the part of the Master Servicer. 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; 
  

 73 

 (ii) the execution and delivery of this Agreement by the Master Servicer and its
performance and compliance with the terms of this Agreement will not (A) violate the Master Servicer’s charter or bylaws, (B) violate any law or regulation or any administrative decree or order to which it is subject or (C) constitute a default
(or an event which, with notice or lapse of time, or both, would constitute a default) under, or result in the breach of, any material contract, agreement or other instrument to which the Master Servicer is a party or by which it is bound or to
which any of its assets are subject, which violation, default or breach would materially and adversely affect the Master Servicer’s ability to perform its obligations under this Agreement; 
  
 (iii) this Agreement constitutes, assuming due
authorization, execution and delivery hereof by the other respective parties hereto, a legal, valid and binding obligation of the Master Servicer, enforceable against it in accordance with the terms hereof, except as such enforcement may be limited
by bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’ rights in general, and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or
at law); 
  
 (iv) the Master Servicer is not in
default with respect to any order or decree of any court or any order or regulation of any federal, state, municipal or governmental agency to the extent that any such default would materially and adversely affect its performance hereunder;

  
 (v) the Master Servicer is not a party to or
bound by any agreement or instrument or subject to any charter provision, bylaw or any other corporate restriction or any judgment, order, writ, injunction, decree, law or regulation that may materially and adversely affect its ability as Master
Servicer to perform its obligations under this Agreement or that requires the consent of any third person to the execution of this Agreement or the performance by the Master Servicer of its obligations under this Agreement; 
  
 (vi) no litigation is pending or, to the best of the Master
Servicer’s knowledge, threatened against the Master Servicer which would prohibit its entering into this Agreement or performing its obligations under this Agreement; 
  
 (vii) the Master Servicer, or an affiliate thereof the primary business of which is the servicing of
residential mortgage loans, is a Fannie Mae- or Freddie Mac-approved seller/servicer of residential mortgage loans for Fannie Mae, Freddie Mac and HUD; 
  
 (viii) no consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery
and performance by the Master 

  

 74 

 
Servicer of or compliance by the Master Servicer with this Agreement or the consummation of the transactions contemplated by this Agreement, except for such
consents, approvals, authorizations and orders (if any) as have been obtained; 
  
 (ix) the consummation of the transactions contemplated by this Agreement are in the ordinary course of business of the Master Servicer;

  
 (x) the Master Servicer has obtained a Master
Servicer Errors and Omissions Insurance Policy and a Master Servicer Fidelity Bond in accordance with Section 5.02 each of which is in full force and effect, and each of which provides at least such coverage as is required hereunder; and 

 
 (xi) the information about the Master Servicer under the
heading “The Master Servicer” in the Offering Documents relating to the Master Servicer does not include an untrue statement of a material fact and does not omit to state a material fact, with respect to the statements made, necessary in
order to make the statements in light of the circumstances under which they were made not misleading. 
  
 (b) It is understood and agreed that the representations and warranties set forth in this Section 5.01 shall survive the execution and delivery of this
Agreement. The Master Servicer shall indemnify the Seller, the Depositor, the Issuer, the Indenture Trustee, the Owner Trustee, the Securities Administrator and the Servicer and hold them harmless against any loss, damages, penalties, fines,
forfeitures, legal fees and related costs, judgments, and other costs and expenses resulting from any claim, demand, defense or assertion based on or grounded upon, or resulting from, a breach of the Master Servicer’s representations and
warranties contained in this Section 5.01. It is understood and agreed that the enforcement of the obligation of the Master Servicer set forth in this Section to indemnify the foregoing parties as provided in this Section constitutes the sole remedy
(other than as set forth in Section 8.01) of such parties respecting a breach of the foregoing representations and warranties. Such indemnification shall survive any termination of the Master Servicer as Master Servicer hereunder, and any
termination of this Agreement. 
  
 Any cause of action against the
Master Servicer relating to or arising out of the breach of any representations and warranties made in this Section shall accrue upon discovery of such breach by the Seller, the Depositor, the Issuer, the Indenture Trustee, the Securities
Administrator or the Servicer or notice thereof by any one of such parties to the other parties. Notwithstanding anything in this Agreement to the contrary, the Master Servicer shall not be liable for special, indirect or consequential losses or
damages of any kind whatsoever (including, but not limited to, lost profits). 
  
 Section 5.02. Master Servicer Fidelity Bond and Master Servicer Errors and Omissions Insurance Policy. 
  
 (a) The Master Servicer, at its expense, shall maintain in effect a Master Servicer Fidelity Bond and a Master Servicer Errors and Omissions Insurance
Policy, affording coverage with 

  

 75 

 
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 Master Servicer Errors and Omissions Insurance Policy and the Master Servicer Fidelity Bond shall be in such form and amount that would be consistent with coverage customarily
maintained by master servicers of mortgage loans similar to the Mortgage Loans and shall by its terms not be cancelable without thirty days’ prior written notice to the Indenture Trustee. The Master Servicer shall provide the Depositor and the
Indenture Trustee, upon request, with a copy of such policy and fidelity bond. The Master Servicer shall (i) require the Servicer to maintain a Servicer Errors and Omissions Insurance Policy and a Servicer Fidelity Bond in accordance with the
provisions of Section 4.02(l) of this Agreement, (ii) cause the Servicer to provide to the Master Servicer certificates evidencing that such policy and bond is in effect and to furnish to the Master Servicer any notice of cancellation, non-renewal
or modification of the policy or bond received by it, as and to the extent provided in Section 4.02(l) of the Agreement, and (iii) furnish copies of such policies and of the certificates and notices referred to in clause (ii) to the Indenture
Trustee upon request. 
  
 (b) The Master Servicer shall promptly
report to the Indenture Trustee and the Securities Administrator any material changes that may occur in the Master Servicer Fidelity Bond or the Master Servicer Errors and Omissions Insurance Policy and shall furnish either such party, on request,
certificates evidencing that such bond and insurance policy are in full force and effect. The Master Servicer shall promptly report to the Indenture Trustee and the Securities Administrator all cases of embezzlement or fraud, if such events involve
funds relating to the Mortgage Loans. The total losses, regardless of whether claims are filed with the applicable insurer or surety, shall be disclosed in such reports together with the amount of such losses covered by insurance. If a bond or
insurance claim report is filed with any of such bonding companies or insurers, the Master Servicer shall promptly furnish a copy of such report to the Indenture Trustee and the Securities Administrator. Any amounts relating to the Mortgage Loans
collected by the Master Servicer under any such bond or policy shall be promptly remitted by the Master Servicer to the Securities Administrator for deposit into the Collection Account. Any amounts relating to the Mortgage Loans collected by the
Servicer under any such bond or policy shall be remitted to the Master Servicer. 
  
 Section 5.03. Master Servicer’s Financial Statements and Related Information. For each year this Agreement is in effect, the Master Servicer shall deliver to the Securities Administrator, the Indenture
Trustee, each Rating Agency and the Depositor a copy of its annual unaudited financial statements on or prior to May 31 of each year, beginning May 31, 2005. Such financial statements shall include a balance sheet, income statement, statement of
retained earnings, statement of additional paid-in capital, statement of changes in financial position and all related notes and schedules and shall be in comparative form, certified by a nationally recognized firm of Independent Accountants to the
effect that such statements were examined and prepared in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding year. 
  

 76 

 Section 5.04. Power to Act; Procedures. 
  
 (a) The Master Servicer shall master service the Mortgage Loans,
provided that the Master Servicer shall not take, or knowingly permit the Servicer to take, any action that is inconsistent with or prejudices the interests of the Issuer, the Indenture Trustee or the Noteholders in any Mortgage Loan or the
rights and interests of the Depositor, the Issuer, the Indenture Trustee and the Noteholders under this Agreement and the Indenture. The Master Servicer shall represent and protect the interests of the Issuer, the Indenture Trustee and the
Noteholders in the same manner as it protects its own interests in mortgage loans in its own portfolio in any claim, proceeding or litigation regarding a Mortgage Loan. Without limiting the generality of the foregoing, the Master Servicer in its own
name, and the Servicer, to the extent such authority is delegated to such Servicer under this Agreement, is hereby authorized and empowered by the Indenture Trustee when the Master Servicer or such Servicer, as the case may be, believes it
appropriate in its best judgment and in accordance with Accepted Servicing Practices, to execute and deliver, on behalf of itself and the Noteholders, the Securities Administrator, the Indenture Trustee or any of them, any and all instruments of
satisfaction or cancellation, or of partial or full release or discharge and all other comparable instruments, with respect to the Mortgage Loans and with respect to the Mortgaged Properties. The Indenture Trustee shall furnish the Master Servicer,
upon request, with any powers of attorney (on the standard form used by 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 may request, necessary or appropriate to enable the Master Servicer to master service the Mortgage Loans and carry out its duties hereunder, and to allow the Servicer to service
the Mortgage Loans in each case in accordance with Accepted Servicing Practices (and the Indenture Trustee or the Securities Administrator shall have no liability for misuse of any such powers of attorney by the Master Servicer or the Servicer). 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, then upon request of the Indenture Trustee, 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 no event shall the Master Servicer, without the Indenture Trustee’s written consent: (i) initiate any action, suit or proceeding solely under the Indenture Trustee’s name without
indicating the Master Servicer’s representative capacity or (ii) take any action with the intent to cause, and which actually does cause, the Indenture Trustee to be registered to do business in any state. The Master Servicer shall indemnify
the Indenture Trustee for any and all costs, liabilities and expenses incurred by the Indenture Trustee in connection with the negligent or willful misuse of such powers of attorney by the Master Servicer. 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. 
  

 77 

 (b) In master servicing and administering the Mortgage Loans, the Master Servicer shall employ procedures
and exercise the same care that it customarily employs and exercises in master servicing and administering loans for its own account, giving due consideration to Accepted Servicing Practices where such practices do not conflict with this Agreement.

  
 Section 5.05. Enforcement of Servicer’s and Master
Servicer’s Obligations. 
  
 (a) The Master Servicer
shall not be required to (i) take any action with respect to the servicing of any Mortgage Loan that the Servicer is not required to take under this Agreement and (ii) cause the Servicer to take any action or refrain from taking any action if this
Agreement does not require the Servicer to take such action or refrain from taking such action. 
  
 (b) The Master Servicer, for the benefit of the Issuer, the Indenture Trustee and the Noteholders, shall enforce the obligations of the Servicer
hereunder, and shall, in the event that the Servicer fails to perform its obligations in accordance herewith, terminate the rights and obligations of the Servicer hereunder and either act as servicer of the related Mortgage Loans or cause other
parties hereto to either assume the obligations of the Servicer under this Agreement (or agree to execute and deliver a successor servicing or subservicing agreement with a successor servicer). Such enforcement, including, without limitation, the
legal prosecution of claims, termination of servicing or subservicing rights 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. The Master Servicer shall pay the costs of such enforcement at its own expense, and shall be reimbursed therefor initially (i) from a general recovery resulting from such
enforcement only to the extent, if any, that such recovery exceeds all amounts due in respect of the related Mortgage Loans, (ii) from a specific recovery of costs, expenses or attorneys’ fees against the party against whom such enforcement is
directed, and then, (iii) to the extent that such amounts are insufficient to reimburse the Master Servicer for the costs of such enforcement, from the Collection Account. 
  
 Section 5.06. Collection Account. 
  
 (a) On the Closing Date, the Master Servicer shall open and shall thereafter maintain a segregated account held in trust in
the name of the Indenture Trustee (the “Collection Account”), entitled “Collection Account, U.S. Bank National Association, as Indenture Trustee, in trust for Holders of the HomeBanc Mortgage Trust 2005-1, Mortgage Backed Notes.”
The Collection Account shall relate solely to the Notes issued by the Issuer, and funds deposited in the Collection Account shall not be commingled with any other monies. 
  
 (b) The Collection Account shall be an Eligible Account. If an existing Collection Account ceases to be an Eligible Account,
the Securities Administrator shall establish a new Collection Account that is an Eligible Account within ten (10) days and transfer all funds and investment property on deposit in such existing Collection Account into such new Collection Account.

  

 78 

 (c) The Master Servicer shall give to the Securities Administrator and the Indenture Trustee prior
written notice of the name and address of the depository institution at which the Collection Account is maintained and the account number of such Collection Account. The Master Servicer shall take such actions as are necessary to cause the
depository institution holding the Collection Account to hold such account in the name of the Indenture Trustee. On each Payment Date, the entire amount on deposit in the Collection Account relating to the Mortgage Loans (subject to permitted
withdrawals set forth in Section 5.07), other than amounts not included in Interest Funds or Principal Funds to be paid to Noteholders for such Payment Date, shall be applied to make the requested payment of principal and/or interest on each Class
of Notes. 
  
 (d) The Master Servicer shall deposit or cause to be
deposited in the Collection Account on the earlier of the applicable Payment Date and one Business Day following receipt thereof, the following amounts received or payments made by the Master Servicer (other than in respect of principal of and
interest on the Mortgage Loans due on or before the Cut-off Date): 
  
 (i) all remittances from the Custodial Account to the Master Servicer pursuant to Section 4.03; 
  
 (ii) all Monthly Advances made by the Servicer or the Master Servicer pursuant to Section 6.04 hereof and any payment in respect of
Prepayment Interest Shortfalls paid by the Master Servicer pursuant to Section 5.16 hereof; and 
  
 (iii) the Purchase Price of any Mortgage Loan repurchased by the Depositor or the Seller during the related Prepayment Period or any other
Person and any Substitution Amount related to any Qualifying Substitute Mortgage Loan. 
  
 (e) Funds in the Collection Account may be invested by the Master Servicer in Eligible Investments selected by and at the written direction of the Master Servicer, which shall mature not later than one Business Day
prior to the next Payment Date (or on the Payment Date with respect to any Eligible Investment of the Master Servicer or any other fund managed or advised by it or any Affiliate) and any such Eligible Investment shall not be sold or disposed of
prior to its maturity. All such Eligible Investments shall be made in the name of the Master Servicer in trust for the benefit of the Indenture Trustee and the Noteholders. All income and gain net of the Indenture Trustee Fee, the Owner Trustee Fee,
the Custodian Fee and any losses realized from any such investment of funds on deposit in the Collection Account shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time, subject to Section
5.07 and shall not be part of the Trust Estate. The amount of any losses incurred in respect of any such investments shall be deposited in such Collection Account by the Master Servicer out of its own funds, without any right of reimbursement
therefor, immediately as realized. The foregoing requirements for deposit in the Collection Account are exclusive, it being understood and agreed that, without limiting the generality of the foregoing, payments of interest on funds in the Collection
Account and payments in the nature of late payment charges, assumption fees and other incidental fees and charges relating to the Mortgage Loans need not be 

  

 79 

 
deposited by the Master Servicer in the Collection Account and may be retained by the Master Servicer or the Servicer, as applicable, as additional servicing
compensation. If the Master Servicer deposits in the Collection Account any amount not required to be deposited therein, it may at any time withdraw such amount from such Collection Account. 
  
 Section 5.07. Application of Funds in the Collection Account. The
Master Servicer shall withdraw funds from the Collection Account for payments to the Note Payment Account pursuant to Section 6.01. In addition, the Master Servicer may prior to making the payment pursuant to Section 6.01 from time to time make
withdrawals from the Collection Account for the following purposes: 
  
 (i) to pay to the Indenture Trustee and the Owner Trustee the Indenture Trustee Fee and the Owner Trustee Fee, respectively, on the Payment Date each year in the month in which such Indenture Trustee Fee and Owner
Trustee Fee, the Custodian Fee, as applicable, are due and payable pursuant to the terms of the respective fee letter agreements with the Indenture Trustee and the Owner Trustee; 
  
 (ii) to reimburse the Master Servicer or the Servicer, as applicable, for any previously unreimbursed
Monthly Advances or Servicing Advances made by any such party, such right to reimbursement pursuant to this subclause (ii) being limited to amounts received on or in respect of a particular Mortgage Loan (including, for this purpose, Liquidation
Proceeds, Condemnation Proceeds and amounts representing Insurance Proceeds with respect to the property subject to the related Mortgage) which represent late recoveries (net of the applicable Servicing Fee) of payments of principal or interest
respecting which any such Monthly Advance was made, it being understood, in the case of any such reimbursement, that the Master Servicer’s or Servicer’s right thereto shall be prior to the rights of the Noteholders; 
  
 (iii) to reimburse the Master Servicer or the Servicer
following a final liquidation of a Mortgage Loan for any previously unreimbursed Monthly Advances made by any such party (A) that such party determines in good faith will not be recoverable from amounts representing late recoveries of payments of
principal or interest respecting the particular Mortgage Loan as to which such Monthly Advance was made or from Liquidation Proceeds, Condemnation Proceeds or Insurance Proceeds with respect to such Mortgage Loan and/or (B) to the extent that such
unreimbursed Monthly Advances exceed the related Liquidation Proceeds, Condemnation Proceeds or Insurance Proceeds, it being understood, in the case of each such reimbursement, that the Master Servicer’s or Servicer’s right thereto shall
be prior to the rights of the Noteholders; 
  
 (iv) to reimburse the Master Servicer or the Servicer from Liquidation Proceeds, Condemnation Proceeds or Insurance Proceeds for Liquidation Expenses and for amounts expended by it pursuant to Section 4.02(n) in good faith in connection
with the restoration of damaged property and, to the extent that Liquidation Proceeds, Condemnation Proceeds or Insurance Proceeds after such reimbursement exceed the 

  

 80 

 
unpaid principal balance of the related Mortgage Loan, together with accrued and unpaid interest thereon at the applicable Mortgage Rate less the Servicing
Fee Rate for such Mortgage Loan to the Due Date next succeeding the date of its receipt of such Liquidation Proceeds, Condemnation Proceeds or Insurance Proceeds, to pay to the Master Servicer or the Servicer out of such excess the amount of any
unpaid assumption fees, late payment charges or other Mortgagor charges on the related Mortgage Loan and to retain any excess remaining thereafter as additional servicing compensation, it being understood, in the case of any such reimbursement or
payment, that such Master Servicer’s or Servicer’s right thereto shall be prior to the rights of the Noteholders; 
  
 (v) to pay to the Depositor or the Seller or any other Person, as applicable, with respect to each Mortgage Loan or REO Property acquired
in respect thereof that has been purchased pursuant to this Agreement, all amounts received thereon and not paid on the date on which the related repurchase was effected, and to pay to the applicable party any Monthly Advances and Servicing Advances
to the extent specified in the definition of Purchase Price; 
  
 (vi) to the extent not paid by the Servicer, to pay any insurance premium with respect to a Mortgage Loan; 
  
 (vii) to pay to the Master Servicer income earned on the investment of funds on deposit in the Collection Account; 
  
 (viii) to make payment to itself, the Master Servicer, the
Servicer, the Indenture Trustee, the Custodian, the Owner Trustee and others pursuant to any provision of this Agreement, the Trust Agreement, the Indenture or the Custodial Agreement; 
  
 (ix) to withdraw funds deposited in error in the Collection Account; 
  
 (x) to clear and terminate the Collection Account pursuant
to Article IX; and 
  
 (xi) to reimburse a
successor master servicer (solely in its capacity as successor master servicer), for any fee or advance occasioned by a termination of the Master Servicer and the assumption of such duties by the Indenture Trustee as successor master servicer or a
successor master servicer appointed by the Indenture Trustee pursuant to Section 8.01, in each case to the extent not reimbursed by the terminated Master Servicer, it being understood, in the case of any such reimbursement or payment, that the right
of the Master Servicer or the Indenture Trustee thereto shall be prior to the rights of the Noteholders. 
  
 In connection with withdrawals pursuant to subclauses (ii) through (iv) above, the Master Servicer’s or the Servicer’s or such other
Person’s entitlement thereto is limited to collections or other recoveries on the related Mortgage Loan. The Master Servicer shall therefore keep and maintain a separate accounting for each Mortgage Loan for the purpose of justifying any
withdrawal from the Collection Account it maintains pursuant to such subclauses. 
  

 81 

 Section 5.08. Reports to Indenture Trustee and Noteholders. 
  
 (a) On each Payment Date, the Securities Administrator shall make available
to the Indenture Trustee and each Noteholder a report setting forth the following information (on the basis of Mortgage Loan level information obtained from the Servicer): 
  
 (i) the aggregate amount of the payment to be made on such Payment Date to the Holders of each Class of
Notes, to the extent applicable, allocable to principal on the Mortgage Loans, including Liquidation Proceeds, Condemnation Proceeds and Insurance Proceeds, stating separately the amount attributable to scheduled principal payments and unscheduled
payments in the nature of principal; 
  
 (ii) the
aggregate amount of the payment to be made on such Payment Date to the Holders of each Class of Notes allocable to interest and the calculation thereof; 
  
 (iii) the amount, if any, of any payment to the Holder of the Ownership Certificate; 
  
 (iv) (A) the aggregate amount of any Monthly Advances
required to be made by or on behalf of the Servicer (or the Master Servicer) with respect to such Payment Date, (B) the aggregate amount of such Monthly Advances actually made, and (C) the amount, if any, by which (A) above exceeds (B) above;

  
 (v) the aggregate amount of Servicing
Advances required to be made by or on behalf of the Servicer (or the Master Servicer) with respect to such Payment Date; 
  
 (vi) the aggregate amount of unreimbursed Monthly Advances outstanding and Servicing Advances outstanding with respect to such Payment
Date; 
  
 (vii) the aggregate amount of
Nonrecoverable Advances with respect to such Payment Date; 
  
 (viii) the total number of Mortgage Loans, the aggregate Scheduled Principal Balance of all the Mortgage Loans as of the close of business on the last day of the related Collection Period, after giving effect to
payments allocated to principal reported under clause (i) above; 
  
 (ix) the Class Principal Amount of each Class of Notes, to the extent applicable, as of such Payment Date after giving effect to payments allocated to principal reported under clause (i) above; 
  

 82 

 (x) the amount of any Realized Losses incurred with respect to the Mortgage Loans (x) in
the applicable Prepayment Period and (y) in the aggregate since the Cut-off Date; 
  
 (xi) the amount of the Servicing Fee paid during the Collection Period to which such payment relates; 
  
 (xii) the number and aggregate Scheduled Principal Balance
of Mortgage Loans, as reported to the Securities Administrator by the Servicer, (a) remaining outstanding, (b) delinquent 30 to 59 days on a contractual basis, (c) delinquent 60 to 89 days on a contractual basis, (d) delinquent 90 or more days on a
contractual basis, (e) as to which foreclosure proceedings have been commenced as of the close of business on the last Business Day of the calendar month immediately preceding the month in which such Payment Date occurs, (f) in bankruptcy and (g)
that are REO Properties; 
  
 (xiii) the aggregate
Scheduled Principal Balance of any Mortgage Loans with respect to which the related Mortgaged Property became an REO Property as of the close of business on the last Business Day of the calendar month immediately preceding the month in which such
Payment Date occurs; 
  
 (xiv) with respect to
substitution of Mortgage Loans in the preceding calendar month, the Scheduled Principal Balance of each Deleted Mortgage Loan and of each Qualifying Substitute Mortgage Loan; 
  
 (xv) the aggregate outstanding Prepayment Interest Shortfalls, Basis Risk Shortfalls and Basis Risk
Shortfall Carryforward Amounts, if any, for each Class of Notes, after giving effect to the payments made on such Payment Date; 
  
 (xvi) the Note Interest Rate applicable to such Payment Date with respect to each Class of Notes; 
  
 (xvii) the Interest Funds, the Principal Funds and the Extra
Principal Distribution Amount applicable to such Payment Date; 
  
 (xviii) if applicable, the amount of any shortfall (i.e., the difference between the aggregate amounts of principal and interest which Noteholders would have received if there were sufficient available amounts in the
Collection Account and the amounts actually paid); 
  
 (xix) the amount of any Principal Deficiency Amount and Deferred Interest with respect to each Class of Notes, after giving effect to payments on such Payment Date; 
  
 (xx) any Overcollateralization Deficiency after giving effect to the payments made on such Payment Date; and

  

 83 

 (xxi) LIBOR with respect to such Payment Date. 
  
 In the case of information furnished pursuant to subclauses (i), (ii) and
(ix) above, the amounts shall (except in the case of the report delivered to the holder of the Ownership Certificate) be expressed as a dollar amount per $1,000 of original principal amount of Notes. 
  
 The Securities Administrator will make such report and additional loan level
information (and, at its option, any additional files containing the same information in an alternative format) available each month to the Rating Agencies and Noteholders via the Securities Administrator’s website. The Securities
Administrator’s website can be accessed at www.ctslink.com. Assistance in using the website can be obtained by calling the Securities Administrator’s customer service desk at (301) 815-6600. Such parties that are unable to use the
website are entitled to have a paper copy mailed to them via first class mail by notifying the Securities Administrator at Wells Fargo Bank, N.A., P.O. Box 98, Columbia, Maryland 21046 (or for overnight deliveries at 9062 Old Annapolis Road,
Columbia, Maryland 21045), and indicating such. The Securities Administrator shall have the right to change the way such statements 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. 
  
 The foregoing information and reports shall be prepared and determined by the Securities Administrator based solely on Mortgage Loan data provided to the
Securities Administrator by the Master Servicer (in a format agreed to by the Securities Administrator and the Master Servicer) no later than 12:00 p.m. (noon) Eastern Standard Time four Business Days prior to the Payment Date. In preparing or
furnishing the foregoing information, the Securities Administrator and the Master Servicer shall be entitled to rely conclusively on the accuracy of the information or data regarding the Mortgage Loans and the related REO Property that has been
provided to the Master Servicer by the Servicer, and neither the Securities Administrator nor the Master Servicer shall be obligated to verify, recompute, reconcile or recalculate any such information or data. The Securities Administrator, the
Indenture Trustee, the Custodian and the Master Servicer shall be entitled to conclusively rely on the Mortgage Loan data provided to the Master Servicer and shall have no liability for any errors in such Mortgage Loan data. 
  
 (b) Upon the reasonable advance written request of any Noteholder that is a
savings and loan, bank or insurance company, which request, if received by the Indenture Trustee shall be forwarded promptly to the Securities Administrator, the Securities Administrator shall provide, or cause to be provided (or, to the extent that
such information or documentation is not required to be provided by the Servicer, shall use reasonable efforts to obtain such information and documentation from the Servicer, and provide), to such Noteholder such reports and access to information
and documentation regarding the Mortgage Loans as such Noteholder may reasonably deem necessary to comply with applicable regulations of the Office of Thrift Supervision or its successor or other regulatory authorities with respect to an investment
in the Notes; provided, however, that the Securities Administrator shall be entitled to be reimbursed by such Noteholder for actual expenses incurred in providing such reports and access. 
  

 84 

 (c) Within ninety (90) days, or such shorter period as may be required by statute or regulation, after
the end of each calendar year, the Securities Administrator shall have prepared and shall make available to each Person who at any time during the calendar year was a Noteholder of record, and make available to Security Owners (identified as such by
the Clearing Agency) in accordance with applicable regulations, a report summarizing the items provided to the Noteholders pursuant to Section 5.08(a) on an annual basis as may be required to enable such Holders to prepare their federal income tax
returns; provided, however, that this Section 5.08(c) shall not be applicable where relevant reports or summaries are required elsewhere in this Agreement. Such information shall include the amount of original issue discount accrued on each
Class of Notes and information regarding the expenses of the Issuer. The Securities Administrator shall be deemed to have satisfied such requirement if it forwards such information in any other format permitted by the Code. The Master Servicer shall
provide the Securities Administrator with such information as is necessary for the Securities Administrator to prepare such reports. 
  
 (d) The Securities Administrator shall furnish any other information that is required by the Code and regulations thereunder to be made available to
Noteholders. The Master Servicer shall provide the Securities Administrator with such information as is necessary for the Securities Administrator to prepare such reports (and the Securities Administrator may rely solely upon such information).

  
 Section 5.09. Termination of Servicer; Successor
Servicers. 
  
 (a) The Master Servicer shall be entitled to
terminate the rights and obligations of the Servicer upon the occurrence of a Servicer Event of Default as set forth in Section 4.07; provided, however, that in the event of termination of the Servicer, the Master Servicer shall provide for
the servicing of the Mortgage Loans by a successor servicer as provided in Section 4.08. 
  
 The parties acknowledge that notwithstanding the preceding sentence, there may be a transition period, not to exceed 90 days, in order to effect the transfer of servicing to a successor servicer. The Master Servicer
shall be entitled to be reimbursed by the Servicer (or by the Trust Estate, if the Servicer is unable to fulfill its obligations hereunder) for all costs associated with the transfer of servicing, including without limitation, any 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. 
  
 (b) If the Master Servicer acts as a successor Servicer, it shall not assume liability for the representations and warranties of the Servicer that it replaces. The Master Servicer shall use reasonable efforts to have
the successor Servicer assume liability for the representations and warranties made by the terminated Servicer and in the event of any such assumption by the successor servicer, the Master Servicer may, in the exercise of its business judgment,
release the terminated Servicer from liability for such representations and warranties. 
  

 85 

 (c) If the Master Servicer acts as a successor Servicer, it will have no obligation to make a Monthly
Advance if it determines in its reasonable judgment that such Monthly Advance would constitute a Nonrecoverable Advance. 
  
 Section 5.10. Master Servicer Liable for Enforcement. The Master Servicer shall use commercially reasonable efforts to ensure that the Mortgage
Loans are serviced in accordance with the provisions of this Agreement and shall use commercially reasonable efforts to enforce the provisions of Article IV for the benefit of the Noteholders. The Master Servicer shall be entitled to enter into any
agreement with any Servicer for indemnification of the Master Servicer and nothing contained in this Agreement shall be deemed to limit or modify such indemnification. Except as expressly set forth herein, the Master Servicer shall have no liability
for the acts or omissions of the Servicer in the performance by such Servicer of its obligations under Article IV. 
  
 Section 5.11. Assumption of Master Servicing by Indenture Trustee. 
  
 (a) In the event the Master Servicer shall for any reason no longer be the Master Servicer (including by reason of any
Master Servicer Event of Default under Section 8.01 of this Agreement), the Indenture Trustee shall thereupon assume all of the rights and obligations of such Master Servicer hereunder. The Indenture Trustee, its designee or any successor master
servicer appointed by the Indenture Trustee shall be deemed to have assumed all of the Master Servicer’s interest herein, except that the Master Servicer shall not thereby be relieved of any liability or obligations of the Master Servicer
accruing prior to its replacement as Master Servicer, and shall be liable to the Indenture Trustee, and hereby agrees to indemnify and hold harmless the Indenture Trustee from and against all costs, damages, expenses and liabilities (including
reasonable attorneys’ fees) incurred by the Indenture Trustee as a result of such liability or obligations of the Master Servicer and in connection with the Indenture Trustee’s assumption (but not its performance, except to the extent that
costs or liability of the Indenture Trustee are created or increased as a result of negligent or wrongful acts or omissions of the Master Servicer prior to its replacement as Master Servicer) of the Master Servicer’s obligations, duties or
responsibilities thereunder. 
  
 (b) The Master Servicer that has
been terminated shall, upon request of the Indenture Trustee but at the expense of such Master Servicer, deliver to the assuming party all documents and records relating to the Mortgage Loans and an accounting of amounts collected and held by it and
otherwise use its best efforts to effect the orderly and efficient transfer of master servicing to the assuming party. 
  

 86 

 Section 5.12. Release of Mortgage Files. 
  
 (a) Upon (i) becoming aware of the payment in full of any Mortgage Loan or
(ii) the receipt by the Master Servicer of a notification that payment in full has been or will be escrowed in a manner customary for such purposes, the Master Servicer shall, or shall cause the Servicer to, promptly notify the Indenture Trustee (or
the Custodian) by a certification (which certification shall include a statement to the effect that all amounts received in connection with such payment that are required to be deposited in the Collection Account maintained by the Master Servicer
pursuant to Section 5.06 have been or will be so deposited) of a Servicing Officer and shall deliver a Request for Release in the form of Exhibit A-5 hereto to the Indenture Trustee or the Custodian with respect to such Mortgage Loan. Upon receipt
of such certification and Request for Release, the Indenture Trustee or the Custodian (with the consent, and at the direction of the Indenture Trustee), shall promptly release the related Mortgage File to the Servicer and the Indenture Trustee shall
have no further responsibility with regard to such Mortgage File. Upon any such payment in full, the Master Servicer is authorized, and the Servicer is authorized, to give, as agent for the Indenture Trustee, as the mortgagee under the Mortgage that
secured the Mortgage Loan, an instrument of satisfaction (or assignment of mortgage without recourse) regarding the Mortgaged Property subject to the Mortgage, which instrument of satisfaction or assignment, as the case may be, shall be delivered to
the Person or Persons entitled thereto against receipt therefor of such payment, it being understood and agreed that no expenses incurred in connection with such instrument of satisfaction or assignment, as the case may be, shall be chargeable to
the Collection 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 Primary Insurance Policy, the Indenture Trustee shall execute such documents as shall be prepared and furnished to the Indenture
Trustee by the Master Servicer, or by the Servicer, as applicable, (in form reasonably acceptable to the Indenture Trustee) and as are necessary to the prosecution of any such proceedings. The Indenture Trustee or the Custodian, shall, upon request
of the Master Servicer or of the Servicer, as applicable, and delivery to the Indenture Trustee or the Custodian, of a Request for Release signed by a Servicing Officer, release the related Mortgage File held in its possession or control to the
Master Servicer (or the Servicer, as applicable). Such trust receipt shall obligate the Master Servicer or the Servicer, as applicable, to return the Mortgage File to the Indenture Trustee or the Custodian, as applicable, when the need therefor by
the Master Servicer or the Servicer, as applicable, no longer exists unless (i) the Mortgage Loan has been liquidated and the Liquidation Proceeds relating to the Mortgage Loan have been deposited in the Collection Account or (ii) 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 to the Custodian a certificate of a Servicing Officer certifying as to 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. 
  
 (c) At any time that the Servicer
is required to deliver to the Custodian a Request for Release, the Servicer shall deliver two copies of the Request for Release if delivered in hard copy or the Servicer may furnish such Request for Release electronically to the Custodian, in

  

 87 

 
which event the Servicing Officer transmitting the same shall be deemed to have signed the Request for Release. In connection with any Request for Release of
a Mortgage File because of a repurchase of a Mortgage Loan, such Request for Release shall, if required, be followed by an assignment of mortgage, without recourse, representation or warranty from the Indenture Trustee to the Seller and the related
Mortgage Note shall be endorsed either in blank or without recourse by the Indenture Trustee and be returned to the Seller. In connection with any Request for Release of a Mortgage File because of the payment in full of a Mortgage Loan, such Request
for Release shall, if required, be accompanied by a certificate of satisfaction or other similar instrument to be executed by or on behalf of the Indenture Trustee and returned to the Servicer. 
  
 Section 5.13. Documents, Records and Funds in Possession of Master
Servicer to be Held for Indenture Trustee. 
  
 (a) The Master
Servicer shall transmit, or cause the Servicer to transmit, to the Indenture Trustee such documents and instruments coming into the possession of the Master Servicer or the Servicer from time to time as are required by the terms hereof to be
delivered to the Indenture Trustee or the Custodian. Any funds received by the Master Servicer or by the Servicer in respect of any Mortgage Loan or which otherwise are collected by the Master Servicer or the Servicer as Liquidation Proceeds,
Condemnation Proceeds or Insurance Proceeds in respect of any Mortgage Loan shall be held for the benefit of the Indenture Trustee and the Noteholders subject to the Master Servicer’s right to retain or withdraw amounts provided in this
Agreement and to the right of the Servicer to retain its Servicing Fee and other amounts as provided herein. The Master Servicer shall, and shall cause the Servicer to, provide access to information and documentation regarding the Mortgage Loans to
the Indenture Trustee, their respective 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 Mortgage Files and funds collected or held by, or under the control of, the Master Servicer or the Servicer, in respect of any Mortgage Loans,
whether from the collection of principal and interest payments or from Liquidation Proceeds, Condemnation Proceeds or Insurance Proceeds, shall be held by the Master Servicer or by the Servicer for and on behalf of the Indenture Trustee as the
Indenture Trustee’s agent and bailee for purposes of perfecting the Indenture Trustee’s security interest therein as provided by relevant Uniform Commercial Code or laws; provided, however, that the Master Servicer and the Servicer
shall be entitled to setoff against, and deduct from, any such funds any amounts that are properly due and payable to the Master Servicer or the Servicer under this Agreement and shall be authorized to remit such funds to the Securities
Administrator in accordance with this Agreement. 
  

 88 

 (c) The Master Servicer hereby acknowledges that concurrently with the execution of this Agreement, the
Indenture Trustee shall own or, to the extent that a court of competent jurisdiction shall deem the conveyance of the Mortgage Loans from the Seller to the Depositor not to constitute a sale, the Indenture Trustee shall have a security interest in
the Mortgage Loans and in all Mortgage Files representing such Mortgage Loans and in all funds and investment property now or hereafter held by, or under the control of, the Servicer or the Master Servicer that are collected by the Servicer or the
Master Servicer in connection with the Mortgage Loans, whether as scheduled installments of principal and interest or as full or partial prepayments of principal or interest or as Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds or
otherwise, and in all proceeds of the foregoing and proceeds of proceeds (but excluding any fee or other amounts to which the Servicer or the Master Servicer is entitled to hereunder); and the Master Servicer agrees that so long as the Mortgage
Loans are assigned to and held by the Indenture Trustee or the Custodian, all documents or instruments constituting part of the Mortgage Files, and such funds relating to the Mortgage Loans which come into the possession or custody of, or which are
subject to the control of, the Master Servicer or the Servicer shall be held by the Master Servicer or the Servicer for and on behalf of the Indenture Trustee as the Indenture Trustee’s agent and bailee for purposes of perfecting the Indenture
Trustee’s security interest therein as provided by the applicable Uniform Commercial Code or other applicable laws. 
  
 (d) The Master Servicer agrees that it shall not, and shall not authorize the Servicer to, create, incur or subject any Mortgage Loans, or any funds that
are deposited in any Custodial Account, Escrow Account or the Collection Account, or any funds that otherwise are or may become due or payable to or for the benefit of the Indenture Trustee, to any claim, lien, security interest, judgment, levy,
writ of attachment or other encumbrance, nor assert by legal action or otherwise any claim or right of setoff against any Mortgage Loan or any funds collected on, or in connection with, a Mortgage Loan. 
  
 Section 5.14. Opinion. On or before the Closing Date, the Master
Servicer shall cause to be delivered to the Depositor, the Seller, the Indenture Trustee, the Issuer, the Securities Administrator and the Servicer one or more Opinions of Counsel, dated the Closing Date, in form and substance reasonably
satisfactory to the Depositor, as to the due authorization, execution and delivery of this Agreement by the Master Servicer and the enforceability thereof. 
  
 Section 5.15. Indenture Trustee To Retain Possession of Certain Insurance Policies and Documents. The Indenture Trustee (or the Custodian on behalf
of the Indenture Trustee) shall retain possession and custody of the originals of the primary mortgage insurance policies or certificate of insurance if applicable and any certificates 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 have been paid in full and the Master Servicer otherwise has fulfilled its obligations under this Agreement, the Indenture Trustee (or 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 the Servicer to deliver to the Indenture Trustee (or the
Custodian), upon the execution or receipt thereof the 

  

 89 

 
originals of the primary mortgage insurance policies and any certificates of renewal thereof, and such other documents or instruments that constitute
portions of the Mortgage File that come into the possession of the Master Servicer or the Servicer from time to time. 
  
 Section 5.16. Compensation to the Master Servicer. Pursuant to Sections 5.06(e) and 6.01(d)(ii), all income and gain realized from any investment
of funds in the Collection Account and the Note Payment Account shall be for the benefit of the Master Servicer as compensation net of the sum of the Indenture Trustee Fee, the Owner Trustee Fee and the Custodian Fee payable by the Master
Servicer to the Indenture Trustee and the Owner Trustee, respectively, on behalf of the Trust, as provided in Section 5.07. Notwithstanding the foregoing, the Master Servicer shall deposit in the Collection Account, on or before the related Payment
Date, an amount equal to the lesser of (i) its master servicing compensation with respect to such Payment Date and (ii) the amount of any Compensating Interest Payment required to be paid by the Servicer with respect to such Payment Date pursuant to
this Agreement, but which is not paid by the Servicer on its behalf. 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 5.17. Annual
Officer’s Certificate as to Compliance. 
  
 (a) The
Master Servicer shall deliver to the Indenture Trustee on or before March 1st of each calendar year, commencing on
March 1, 2006, an Officer’s Certificate, certifying that with respect to the period ending on the immediately preceding December 31: (i) such Servicing Officer has reviewed the activities of such Master Servicer during the preceding calendar
year or portion thereof and its performance under this Agreement, (ii) to the best of such Servicing Officer’s knowledge, based on such review, such Master Servicer has performed and fulfilled its duties, responsibilities and obligations under
this Agreement in all material respects throughout such year, or, if there has been a default in the fulfillment of any such duties, responsibilities or obligations, specifying each such default known to such Servicing Officer and the nature and
status thereof, (iii) nothing has come to the attention of such Servicing Officer to lead such Servicing Officer to believe that the Servicer has failed to perform any of its duties, responsibilities and obligations set forth in Article IV hereunder
in all material respects throughout such year, or, if there has been a material default in the performance or fulfillment of any such duties, responsibilities or obligations, specifying each such default known to such Servicing Officer and the
nature and status thereof, and (iv) the Master Servicer has received from the Servicer an annual certificate of compliance and a copy of such Servicer’s annual audit report, or, if any such certificate or report has not been received by the
Master Servicer, the Master Servicer is using its best reasonable efforts to obtain such certificate or report. 
  
 (b) Copies of such statements shall be provided to any Noteholder upon request, by the Master Servicer or by the Indenture Trustee at the Master
Servicer’s expense if the Master Servicer failed to provide such copies (unless (i) the Master Servicer shall have failed to provide the Indenture Trustee with such statement or (ii) the Indenture Trustee has no actual knowledge of the Master
Servicer’s failure to provide such statement). 
  

 90 

 Section 5.18. Annual Independent Accountants’ Servicing Report. If the Master Servicer (or
any of its Affiliates) has, during the course of any fiscal year, directly serviced, as a successor Servicer, any of the Mortgage Loans, then the Master Servicer at its expense shall cause a nationally recognized firm of independent certified public
accountants to furnish a statement to the Issuer, the Indenture Trustee, the Rating Agencies and the Depositor on or before March 1 of each calendar year, commencing on March 1, 2006 to the effect that, with respect to the most recently ended
calendar year, such firm has examined certain records and documents relating to the Master Servicer’s performance of its servicing obligations under this Agreement and pooling and servicing and trust agreements in material respects similar to
this Agreement and to each other and that, on the basis of such examination conducted substantially in compliance with the audit program for mortgages serviced for Freddie Mac or the Uniform Single Attestation Program for Mortgage Bankers, such firm
is of the opinion that the Master Servicer’s activities have been conducted in compliance with this Agreement, or that such examination has disclosed no material items of noncompliance except for (i) such exceptions as such firm believes to be
immaterial, (ii) such other exceptions as are set forth in such statement and (iii) such exceptions that the Uniform Single Attestation Program for Mortgage Bankers or the Audit Program for Mortgages Serviced by Freddie Mac requires it to report.
Copies of such statements shall be provided to any Noteholder upon request by the Master Servicer, or by the Indenture Trustee at the expense of the Master Servicer if the Master Servicer shall fail to provide such copies. If such report discloses
exceptions that are material, the Master Servicer shall advise the Indenture Trustee whether such exceptions have been or are susceptible of cure, and will take prompt action to do so. 
  
 Section 5.19. 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 shall be a Person that shall be qualified and approved (or that have an Affiliate that is qualified and approved) seller/servicer of residential mortgage loans for Fannie Mae, Freddie Mac and HUD and shall have a net worth of not less than
$25,000,000. 
  
 Section 5.20. Resignation of Master
Servicer. Except as otherwise provided in Sections 5.19 and this Section 5.20 hereof, the Master Servicer shall not resign from the obligations and duties hereby imposed on it unless it determines that 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 Opinion of Counsel that shall be Independent to such effect delivered to the Indenture Trustee and the Issuer. No such resignation shall become effective until the Indenture Trustee shall have assumed, or a successor master servicer
shall have been appointed by 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 and the Depositor to the Indenture Trustee. 
  

 91 

 Section 5.21. 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, unless the Indenture Trustee and the Depositor shall have consented to such action; provided, however, that the Master Servicer shall have the right without the prior
written consent of the Indenture Trustee or the Depositor to delegate or assign to or subcontract with or authorize or appoint an Affiliate of the Master Servicer to perform and carry out any duties, covenants or obligations to be performed and
carried out by the Master Servicer hereunder. In no case, however, shall any such delegation, subcontracting or assignment to an Affiliate of the Master Servicer relieve the Master Servicer of any liability hereunder. Notice of such permitted
assignment shall be given promptly by the Master Servicer to the Depositor 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
compensation payable to the Master Servicer pursuant hereto, including amounts payable to or permitted to be retained or withdrawn by the Master Servicer pursuant to Section 5.16 hereof, shall thereafter be payable to such successor master servicer.

  
 Section 5.22. Limitation on Liability of the Master
Servicer and Others. 
  
 (a) The Master Servicer undertakes
to perform such duties and only such duties as are specifically set forth in this Agreement. 
  
 (b) No provision of this Agreement shall be construed to relieve the Master Servicer from liability for its own negligent action, its own negligent failure to act or its own willful misconduct; provided,
however, that the duties and obligations of the Master Servicer shall be determined solely by the express provisions of this Agreement, the Master Servicer shall not be liable except for the performance of such duties and obligations as are
specifically set forth in this Agreement; no implied covenants or obligations shall be read into this Agreement against the Master Servicer and, in absence of bad faith on the part of the Master Servicer, the Master Servicer may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Master Servicer and conforming to the requirements of this Agreement. 
  
 (c) Neither the Master Servicer nor any of the directors, officers, employees
or agents of the Master Servicer shall be under any liability to the Indenture Trustee or the Noteholders for any action taken or for refraining from the taking of any action in good faith pursuant to this Agreement, or for errors in judgment;
provided, however, that this provision shall not protect the Master Servicer or any such person against any liability that would otherwise be imposed by reason of willful misfeasance, bad faith or negligence in its performance of its duties
or by reason of reckless disregard for its obligations and duties under this Agreement. The Master 

  

 92 

 
Servicer and any director, officer, employee or agent of the Master Servicer shall be entitled to indemnification by the Trust Estate and will be held
harmless against any loss, liability or expense incurred in connection with any legal action relating to this Agreement, the Notes or any other Operative Agreement other than any loss, liability or expense incurred by reason of willful misfeasance,
bad faith or negligence in the performance of his or its duties hereunder or by reason of reckless disregard of his or its obligations and duties hereunder. The Master Servicer and any director, officer, employee or agent of the 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 Master Servicer shall be under no obligation to appear in, prosecute or defend any legal action
that is not incidental to its duties to master service the Mortgage Loans in accordance with this Agreement and that in its opinion may involve it in any expenses or liability; provided, however, that the Master Servicer may in its sole
discretion undertake any such action that it may deem necessary or desirable in respect to this Agreement and the rights and duties of the parties hereto and the interests of the Noteholders hereunder. In such event, the legal expenses and costs of
such action and any liability resulting therefrom shall be expenses, costs and liabilities of the Issuer and the Master Servicer shall be entitled to be reimbursed therefor out of the Collection Account it maintains as provided by Section 5.07.

  
 Section 5.23. Indemnification; Third Party Claims. The
Master Servicer agrees to indemnify the Depositor, the Issuer, the Indenture Trustee, the Owner Trustee and the Servicer and hold them harmless against any and all claims, losses, penalties, fines, forfeitures, legal fees and related costs,
judgments, and any other costs, liability, fees and expenses that the Depositor, the Issuer, the Indenture Trustee, the Owner Trustee or the Servicer may sustain as a result of the failure of the Master Servicer to perform its duties and master
service the Mortgage Loans in compliance with the terms of this Agreement. The Depositor, the Issuer, the Indenture Trustee, the Owner Trustee and the Servicer shall immediately notify the Master Servicer if a claim is made by a third party with
respect to this Agreement, the Mortgage Loans entitling the Depositor, the Issuer, the Indenture Trustee, the Owner Trustee or the Servicer to indemnification under this Section 5.23, whereupon the Master Servicer shall assume the defense of any
such claim and pay all expenses in connection therewith, including counsel fees, and promptly pay, discharge and satisfy any judgment or decree which may be entered against it or them in respect of such claim. The failure to provide such immediate
notice shall not affect the Master Servicer’s obligation pursuant to this Section 5.23 to indemnify the Depositor, the Issuer, the Indenture Trustee, the Owner Trustee and the Servicer, except to the extent that the Master Servicer is
materially prejudiced by such failure to notify. 
  
 Section 5.24.
Alternative Index. In the event that the Index for any Mortgage Loan, as specified in the related Mortgage Note, becomes unavailable for any reason, the Servicer shall select an alternative index in accordance with the terms of such Mortgage
Note or, if such Mortgage Note does not make provision for the selection of an alternative index in such event, the Servicer shall, subject to applicable law, select an alternative index based on information comparable to that used in connection
with the original Index and, in either case, such alternative index shall thereafter be the Index for such Mortgage Loan. 
  

 93 

 Section 5.25. Transfer of Servicing. The Servicer agrees that it shall provide written notice to
the Master Servicer and the Indenture Trustee thirty days prior to any proposed transfer or assignment by the Seller of the servicing of the Mortgage Loans. In addition, the ability of the Servicer to transfer or assign the servicing hereunder to a
successor servicer shall be subject to the following conditions: 
  
 (i) Receipt of written consent of the Master Servicer to such transfer, which consent shall not be unreasonably withheld; 
  
 (ii) Such successor servicer must satisfy the servicer eligibility standards set forth in Section 4.06(a); 
  
 (iii) Such successor servicer must execute and deliver to
the Master Servicer and the Indenture Trustee an agreement, in form and substance reasonably satisfactory to the Master Servicer and the Indenture Trustee, that contains an assumption by such successor servicer of the due and punctual performance
and observance of each covenant and condition to be performed and observed by the Servicer; 
  
 (iv) At the time of the transfer, there must be delivered to the Indenture Trustee a letter from each Rating Agency to the effect that
such transfer of servicing will not result in a qualification, withdrawal or downgrade of the then-current rating of any of the Notes; and 
  
 (v) The Seller shall, at its cost and expense, take such steps, or cause the terminated Servicer to take such steps, as may be necessary
or appropriate to effectuate and evidence the transfer of the servicing of the Mortgage Loans to such successor servicer, including, but not limited to, the following: (A) to the extent required by the terms of the Mortgage Loans and by applicable
federal and state laws and regulations, the Seller shall cause the prior Servicer to timely mail to each obligor under a Mortgage Loan any required notices or disclosures describing the transfer of servicing of the Mortgage Loans to the successor
servicer; (B) prior to the effective date of such transfer of servicing, the Seller shall cause the prior Servicer to transmit to any related insurer notification of such transfer of servicing; (C) on or prior to the effective date of such transfer
of servicing, the Seller shall cause the prior Servicer to deliver to the successor servicer all Mortgage Loan Documents and any related records or materials; (D) on or prior to the effective date of such transfer of servicing, the Seller shall
cause the prior Servicer to transfer to the successor servicer, or, if such transfer occurs after a Servicer Remittance Date but before the next succeeding Payment Date, to the Securities Administrator, all funds held by the prior Servicer in
respect of the Mortgage Loans; (E) on or prior to the effective date of such transfer of servicing, the Seller shall cause the prior Servicer to, after the effective date of the transfer of servicing to the successor servicer, continue to forward to
such successor servicer, within one Business Day of receipt, the amount of any payments or other recoveries received by the prior Servicer, and to notify the successor servicer of the source and proper application of each such 

  

 94 

 
payment or recovery; and (F) the Seller shall cause the prior Servicer to, after the effective date of transfer of servicing to the successor servicer,
continue to cooperate with the successor servicer to facilitate such transfer in such manner and to such extent as the successor servicer may reasonably request. 
  
 Section 5.26. Compliance with Safeguarding Customer Information Requirements. The Master Servicer has implemented and
will maintain security measures designed to meet the objectives of the Guidelines. 
  
 ARTICLE VI 
  
 DEPOSITS AND
PAYMENTS TO HOLDERS 
  
 Section 6.01. The Note Payment
Account. 
  
 (a) The Indenture Trustee shall establish and
maintain on behalf of the Noteholders, the Note Payment Account entitled “Note Payment Account, U.S. Bank National Association, as Indenture Trustee, in trust for Holders of the HomeBanc Mortgage Trust 2005-1, Mortgage Backed Notes.”

  
 (b) The Note Payment Account shall be an Eligible Account. If
the Note Payment Account ceases to be an Eligible Account, the Indenture Trustee shall establish a new Note Payment Account that is an Eligible Account within 10 days and transfer all funds and investment property on deposit in such existing Note
Payment Account into such new Note Payment Account. 
  
 (c) On
each Master Servicer Remittance Date, the Master Servicer shall remit to the Indenture Trustee the entire amount on deposit in the Collection Account (subject to permitted withdrawals set forth in Section 5.07). 
  
 (d) Upon receipt, the Indenture Trustee shall deposit the amount received
from the Master Servicer pursuant to subsection (c) of this Section 6.01 into the Note Payment Account. 
  
 (e) Funds in the Note Payment Account may be invested by the Indenture Trustee in Eligible Investments selected by and at the written direction of the
Master Servicer, which shall mature not later than the related Payment Date and any such Eligible Investment shall not be sold or disposed of prior to its maturity. All such Eligible Investments shall be made in the name of the Indenture Trustee in
trust for the benefit of the Noteholders. All income and gain net of the Indenture Trustee Fee, the Owner Trustee Fee, the Custodian Fee and any losses realized from any such investment of funds on deposit in the Note Payment Account shall be for
the benefit of the Master Servicer and shall be subject to withdrawal by the Indenture Trustee for payment to the Master Servicer from time to time in accordance with subsection (f) below and shall not be part of the Trust Estate. The amount of any
losses incurred in respect of any such investments shall be deposited in the Note Payment Account by the Master Servicer out of its own funds, without any right of reimbursement therefor, immediately as realized. 
  

 95 

 (f) The Indenture Trustee shall withdraw funds from the Note Payment Account for payments to Noteholders
and the Certificate Distribution Account in the manner specified in this Agreement. In addition, the Indenture Trustee may prior to making the payment pursuant to Section 6.02 from time to time make withdrawals from the Note Payment Account for the
following purposes: 
  
 (i) to the extent not
reimbursed by the Master Servicer, to make payment to itself pursuant to any provision of this Agreement, the Trust Agreement, the Indenture or the Custodial Agreement; 
  
 (ii) to pay to the Master Servicer income earned on the investment of funds on deposit in the Note Payment
Account; 
  
 (iii) to withdraw funds deposited in
error in the Note Payment Account; and 
  
 (iv)
to clear and terminate the Note Payment Account pursuant to Article IX. 
  
 Section 6.02. Payments from the Note Payment Account. 
  
 (a) On each Payment Date, the Indenture Trustee shall pay the Interest Funds for such date in the following order of priority in accordance with the report of the Securities Administrator: 
  
 (i) concurrently, pro rata, in proportion to the
amount of Accrued Note Interest applicable to each such Class, to the Senior Notes, Accrued Note Interest for each such Class and such Payment Date; 
  
 (ii) to the Class M-1 Notes, Accrued Note Interest for such Class for such Payment Date; 
  
 (iii) to the Class M-2 Notes, Accrued Note Interest for such
Class for such Payment Date; 
  
 (iv) to the
Class M-3 Notes, Accrued Note Interest for such Class for such Payment Date; 
  
 (v) to the Class M-4 Notes, Accrued Note Interest for such Class for such Payment Date; 
  
 (vi) to the Class M-5 Notes, Accrued Note Interest for such Class for such Payment Date; 
  

 96 

 (vii) to the Class M-6 Notes, Accrued Note Interest for such Class for such Payment Date;

  
 (viii) to the Class B-1 Notes, Accrued Note
Interest for such Class for such Payment Date; 
  
 (ix) to the Class B-2 Notes, Accrued Note Interest for such Class for such Payment Date; and 
  
 (x) for application as part of Monthly Excess Cashflow for such Payment Date, as provided in subsection (c) of this Section, any Interest
Funds remaining after application pursuant to clauses (i) through (ix) above. 
  
 (b) On each Payment Date, the Indenture Trustee shall pay the Principal Funds, concurrently, to each Class of Notes, in proportion to the Class Principal Amounts thereof, in reduction of their Class Principal Amounts,
until the Class Principal Amount of each Class has been reduced to zero. 
  
 (c) On each Payment Date, the Indenture Trustee shall pay the Monthly Excess Cashflow for such date in accordance with the report of the Securities Administrator, in the following order of priority: 
  
 (i) to each Class of Notes, in an amount equal to the Extra
Principal Distribution Amount, in proportion to their Class Principal Amounts, in each case in reduction of their respective Class Principal Amounts, until the Class Principal Amount of each such Class has been reduced to zero; and 
  
 (ii) in the following order of priority: 
  
 (1) to the Class A-1 Notes, any Deferred Interest for such
Class and such Payment Date; 
  
 (2) to the Class
A-2 Notes, any Deferred Interest for such Class and such Payment Date; 
  
 (3) to the Class M-1 Notes, any Deferred Interest for such Class and such Payment Date; 
  
 (4) to the Class M-2 Notes, any Deferred Interest for such Class and such Payment Date; 
  
 (5) to the Class M-3 Notes, any Deferred Interest for such
Class and such Payment Date; 
  

 97 

 (6) to the Class M-4 Notes, any Deferred Interest for such Class and such Payment Date;

  
 (7) to the Class M-5 Notes, any Deferred
Interest for such Class and such Payment Date; 
  
 (8) to the Class M-6 Notes, any Deferred Interest for such Class and such Payment Date; 
  
 (9) to the Class B-1 Notes, any Deferred Interest for such Class and such Payment Date; and 
  
 (10) to the Class B-2 Notes, any Deferred Interest for such
Class and such Payment Date; 
  
 (iii) in the
following order of priority: 
  
 (1)
concurrently, pro rata, in proportion to the amount of Basis Risk Shortfall Carryforward Amount applicable to each such Class, to the Senior Notes, any applicable Basis Risk Shortfall Carryforward Amount for each such Class and such Payment
Date to the extent not covered by the Cap Agreements; 
  
 (2) to the Class M-1 Notes, any applicable Basis Risk Shortfall Carryforward Amount for such Class and such Payment Date to the extent not covered by the Cap Agreements; 
  
 (3) to the Class M-2 Notes, any applicable Basis Risk Shortfall Carryforward Amount for such Class and such
Payment Date to the extent not covered by the Cap Agreements; 
  
 (4) to the Class M-3 Notes, any applicable Basis Risk Shortfall Carryforward Amount for such Class and such Payment Date to the extent not covered by the Cap Agreements; 
  
 (5) to the Class M-4 Notes, any applicable Basis Risk
Shortfall Carryforward Amount for such Class and such Payment Date to the extent not covered by the Cap Agreements; 
  
 (6) to the Class M-5 Notes, any applicable Basis Risk Shortfall Carryforward Amount for such Class and such Payment Date to the extent not
covered by the Cap Agreements; 
  
 (7) to the
Class M-6 Notes, any applicable Basis Risk Shortfall Carryforward Amount for such Class and such Payment Date to the extent not covered by the Cap Agreements; 
  

 98 

 (8) to the Class B-1 Notes, any applicable Basis Risk Shortfall Carryforward Amount for
such Class and such Payment Date to the extent not covered by the Cap Agreements; and 
  
 (9) to the Class B-2 Notes, any applicable Basis Risk Shortfall Carryforward Amount for such Class and such Payment Date to the extent not
covered by the Cap Agreements; 
  
 (iv) to the
Cap Counterparty, any amount payable in connection with the purchase of a substitute Cap Agreement, if any; and 
  
 (v) to the Certificate Distribution Account, for payment to the Residual Holder (or as otherwise provided in the Trust Agreement), any
amount remaining on such Payment Date after application pursuant to clauses (i) through (iv) above. 
  
 Section 6.03. Control of the Trust Account and Deferred Interest. 
  
 (a) The Depositor and the Issuer hereby appoint U.S. Bank National Association as Securities Intermediary with respect to
the Trust Accounts, and the Issuer has, pursuant to the Indenture, granted to the Indenture Trustee, for the benefit of the Noteholders, a security interest to secure all amounts due Noteholders hereunder in and to the Trust Accounts and the
Security Entitlements to all Financial Assets credited to the Trust Accounts, including without limitation all amounts, securities, investments, Financial Assets, investment property and other property from time to time deposited in or credited to
the Trust Accounts and all proceeds thereof. Amounts held from time to time in the Trust Accounts will continue to be held by the Securities Intermediary for the benefit of the Indenture Trustee, as collateral agent, for the benefit of the
Noteholders. Upon the termination of the Issuer or the discharge of the Indenture, the Indenture Trustee shall inform the Securities Intermediary of such termination. By acceptance of their Notes or interests therein, the Noteholders shall be deemed
to have appointed U.S. Bank National Association as Securities Intermediary. U.S. Bank National Association hereby accepts such appointment as Securities Intermediary. 
  
 (b) With respect to the Trust Account Property credited to the Trust Accounts, the Securities Intermediary agrees that:

  
 (i) with respect to any Trust Account
Property that is held in deposit accounts, each such deposit account shall be subject to the exclusive custody and control of the Securities Intermediary, and the Securities Intermediary shall have sole signature authority with respect thereto;

  
 (ii) the sole assets permitted in each Trust
Account shall be those as the Securities Intermediary agrees to treat as Financial Assets; and 
  
 (iii) any such Trust Account Property that is, or is treated as, a Financial Asset shall be physically delivered (accompanied by any
required endorsements) to, or credited 

  

 99 

 
to an account in the name of, the Securities Intermediary or other eligible institution maintaining each Trust Account in accordance with the Securities
Intermediary’s customary procedures such that the Securities Intermediary or such other institution establishes a Security Entitlement in favor of the Indenture Trustee with respect thereto over which the Securities Intermediary or such other
institution has Control; 
  
 (c) The Securities Intermediary
hereby confirms that (A) each Trust Account is an account to which Financial Assets are or may be credited, and the Securities Intermediary shall, subject to the terms of this Agreement, treat the Indenture Trustee, as collateral agent, as entitled
to exercise the rights that comprise any Financial Asset credited to each Trust Account, (B) all Trust Account Property in respect of each Trust Account will be promptly credited by the Securities Intermediary to such account, and (C) all securities
or other property underlying any Financial Assets credited to each Trust Account shall be registered in the name of the Securities Intermediary, endorsed to the Securities Intermediary or in blank or credited to another securities account maintained
in the name of the Securities Intermediary and in no case will any Financial Asset credited to any Trust Account be registered in the name of the Depositor or the Issuer, payable to the order of the Depositor or the Issuer or specially endorsed to
the Depositor or the Issuer, except to the extent the foregoing have been specially endorsed to the Securities Intermediary or in blank; 
  
 (d) The Securities Intermediary hereby agrees that each item of property (whether investment property, Financial Asset, security, instrument or cash)
credited to each Trust Account shall be treated as a Financial Asset; 
  
 (e) If at any time the Securities Intermediary shall receive an Entitlement Order from the Indenture Trustee (or the Securities Administrator on its behalf) directing transfer or redemption of any Financial Asset relating to any Trust
Account, the Securities Intermediary shall comply with such Entitlement Order without further consent by the Depositor, the Issuer or any other Person. If at any time the Indenture Trustee or the Securities Administrator notifies the Securities
Intermediary in writing that the Issuer has been terminated or the Indenture discharged in accordance herewith and with the Trust Agreement or the Indenture, as applicable, and the security interest granted pursuant to the Indenture has been
released, then thereafter if the Securities Intermediary shall receive any order from the Depositor or the Issuer directing transfer or redemption of any Financial Asset relating to any Trust Account, the Securities Intermediary shall comply with
such Entitlement Order without further consent by the Indenture Trustee or any other Person; 
  
 (f) In the event that the Securities Intermediary has or subsequently obtains by agreement, operation of law or otherwise a security interest in a Trust Account or any Financial Asset credited thereto, the Securities
Intermediary hereby agrees that such security interest shall be subordinate to the security interest of the Indenture Trustee. The Financial Assets credited to each Trust Account will not be subject to deduction, set-off, banker’s lien, or any
other right in favor of any Person other than the Indenture Trustee (except that the Securities Intermediary may set-off (i) all amounts due to it in respect of its customary fees and expenses for the routine 

  

 100 

 
maintenance and operation of a Trust Account and (ii) the face amount of any checks which have been credited to a Trust Account but are subsequently returned
unpaid because of uncollected or insufficient funds); 
  
 (g)
There are no other agreements entered into between the Securities Intermediary in such capacity and the Depositor or the Issuer with respect to the Trust Accounts. In the event of any conflict between this Agreement (or any provision of this
Agreement) and any other agreement now existing or hereafter entered into, the terms of this Agreement shall prevail; 
  
 (h) The rights and powers granted under the Indenture and herein to the Indenture Trustee have been granted in order to perfect its security interest in
each Trust Account and the Security Entitlements to the Financial Assets credited thereto, and are powers coupled with an interest and will neither be affected by the bankruptcy of the Depositor or the Issuer nor by the lapse of time. The
obligations of the Securities Intermediary hereunder shall continue in effect until the security interest of the Indenture Trustee in the Trust Accounts, and in such Security Entitlements, has been terminated pursuant to the terms of this Agreement
and the Indenture Trustee or the Issuer, as applicable, has notified the Securities Intermediary of such termination in writing; and 
  
 (i) Notwithstanding anything else contained herein, the Depositor and the Issuer agree that each Trust Account will be established only with the
Securities Intermediary or another institution meeting the requirements of this Section, which by acceptance of its appointment as Securities Intermediary agrees substantially as follows: (1) it will comply with Entitlement Orders related to each
Trust Account issued by the Indenture Trustee, as collateral agent, without further consent by the Depositor or the Issuer, without further consent by the Depositor; (2) until termination of the Issuer or discharge of the Indenture, it will not
enter into any other agreement related to such accounts pursuant to which it agrees to comply with Entitlement Orders of any Person other than the Indenture Trustee, as collateral agent, or the Securities Administrator on its behalf; and (3) all
assets delivered or credited to it in connection with such account and all investments thereof will be promptly credited to the applicable account. 
  
 (j) Notwithstanding the foregoing, the Issuer shall have the power, revocable by the Indenture Trustee or by the Owner Trustee with the consent of the
Indenture Trustee, to instruct the Indenture Trustee, the Securities Administrator and the Master Servicer to make withdrawals and payments from each Trust Account for the purpose of permitting the Master Servicer, the Securities Administrator or
the Owner Trustee to carry out its respective duties hereunder or permitting the Indenture Trustee to carry out its duties under the Indenture. 
  
 (k) Each of the Depositor and the Issuer agrees to take or cause to be taken such further actions, to execute, deliver and file or cause to be executed,
delivered and filed such further documents and instruments (including, without limitation, any financing statements under the Relevant UCC or this Agreement) as may be necessary to perfect the interests created by this Section in favor of the Issuer
and the Indenture Trustee and otherwise fully to effectuate the purposes, terms and conditions of this Section. The Depositor shall: 
  
 (i) promptly execute, deliver and file any financing statements, amendments, continuation statements, assignments, certificates and other
documents with respect to such interests and perform all such other acts as may be necessary in order to perfect or to maintain the perfection of the Issuer’s and the Indenture Trustee’s security interest in the Trust Account Property; and

  

 101 

 (ii) make the necessary filings of financing statements or amendments thereto within five
days after the occurrence of any of the following: (1) any change in its corporate name or any trade name or its jurisdiction of organization; (2) any change in the location of its chief executive office or principal place of business; and (3) any
merger or consolidation or other change in its identity or corporate structure and promptly notify the Issuer and the Indenture Trustee of any such filings. 
  
 (iii) Neither the Depositor nor the Issuer shall organize under the law of any jurisdiction other than the State under which each is
organized as of the Closing Date (whether changing its jurisdiction of organization or organizing under an additional jurisdiction) without giving thirty (30) days prior written notice of such action to its immediate and mediate transferee,
including the Indenture Trustee. Before effecting such change, each of the Depositor or the Issuer proposing to change its jurisdiction of organization shall prepare and file in the appropriate filing office any financing statements or other
statements necessary to continue the perfection of the interests of its immediate and mediate transferees, including the Indenture Trustee, in the Trust Account Property. In connection with the transactions contemplated by the Operative Agreements
relating to the Trust Account Property, each of the Depositor and the Issuer authorizes its immediate or mediate transferee to file in any filing office any initial financing statements, any amendments to financing statements, any continuation
statements, or any other statements or filings described in this Section 6.03. 
  
 None of the Securities Intermediary or any director, officer, employee or agent of the Securities Intermediary shall be under any liability to the Indenture Trustee or the Noteholders for any action taken, or not
taken, in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that this provision shall not protect the Securities Intermediary against any liability to the Indenture Trustee or the Noteholders which would
otherwise be imposed by reason of the Securities Intermediary’s willful misconduct, bad faith or negligence in the performance of its obligations or duties hereunder. The Securities Intermediary and any director, officer, employee or agent of
the Securities Intermediary may rely in good faith on any document of any kind which, prima facie, is properly executed and submitted by any Person respecting any matters arising hereunder. The Securities Intermediary shall be under no duty to
inquire into or investigate the validity, accuracy or content of such document. The Issuer shall indemnify the Securities Intermediary for and hold it harmless against any loss, liability or expense arising out of or in connection with this
Agreement and carrying out its duties hereunder, including the costs and expenses of defending itself against any claim of liability, except in those cases where the Securities Intermediary has been guilty of bad faith, negligence or willful
misconduct. The foregoing indemnification shall survive any termination of this Agreement or the resignation or removal of the Securities Intermediary. 
  

 102 

 Section 6.04. Monthly Advances by Master Servicer and Servicer. 
  
 (a) Subject to Section 4.03(c), Monthly Advances shall be made in respect of
each Servicer Remittance Date as provided herein. If, on any Determination Date, the Servicer determines that any Monthly Payments due during the related Collection Period have not been received, such Servicer shall advance such amount to the extent
provided in Section 4.03(c) hereof. If any Servicer fails to remit Monthly Advances required to be made under Section 4.03(c) hereof, the Master Servicer shall itself make, or shall cause the successor Servicer to make, such Monthly Advance on the
Servicer Remittance Date immediately following such Determination Date. If the Master Servicer determines that a Monthly Advance is required, it shall on the Business Day immediately prior to the related Payment Date deposit in the Collection
Account (from its own funds or funds advanced by the Servicer) immediately available funds in an amount equal to such Monthly Advance. The Master Servicer and the Servicer shall be entitled to be reimbursed from the Collection Account, and the
Servicer shall be entitled to be reimbursed from the Custodial Account, for all Monthly Advances made by it as provided in Section 4.02(e). 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. 
  
 (b) In the event that the Master Servicer or Servicer fails for any reason to make a Monthly Advance required to be made pursuant to this Section 6.04,
the Indenture Trustee, as successor Master Servicer, shall, on or before the related Payment Date, deposit in the Collection Account an amount equal to the excess of (a) Monthly Advances required to be made by the Master Servicer or the Servicer
that would have been deposited in such Collection Account over (b) the amount of any Monthly Advance made by the Master Servicer or the Servicer with respect to such Payment Date; provided, however, that the Indenture Trustee as
successor Master Servicer shall be required to make such Monthly Advance only if it is not prohibited by law from doing so and it has determined that such Monthly Advance would be recoverable from amounts to be received with respect to such Mortgage
Loan, including late payments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds, or otherwise. The Indenture Trustee shall be entitled to be reimbursed from the Collection Account for Monthly Advances made by it pursuant to this
Section 6.04 as if it were the Master Servicer and shall be entitled to receive all compensation and fees of the Master Servicer in accordance with Section 8.01(b). 
  
 Section 6.05. Cap Agreements. 
  
 (a) The Indenture Trustee shall establish and maintain an Eligible Account in its name, in trust for the benefit of the
Noteholders, the Cap Account. 
  

 103 

 (b) The Indenture Trustee shall deposit any Cap Receipts received on any Cap Agreement Payment Date into
the Cap Account. Amounts on deposit in the Cap Account shall remain uninvested. 
  
 (c) On each Payment Date, the Indenture Trustee shall distribute the amounts received by the Trust under each Cap Agreement to holders of the Notes in the following order of priority: 
  
 (i) concurrently, pro rata, in proportion to the
amount of Basis Risk Shortfall applicable to each such Class, to the Senior Notes, any applicable Basis Risk Shortfall for each such Class and such Payment Date 
  
 (ii) to the Class M-1 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date;

  
 (iii) to the Class M-2 Notes, any applicable
Basis Risk Shortfall for such Class and such Payment Date; 
  
 (iv) to the Class M-3 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; 
  
 (v) to the Class M-4 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; 
  
 (vi) to the Class M-5 Notes, any applicable Basis Risk
Shortfall for such Class and such Payment Date; 
  
 (vii) to the Class M-6 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; 
  
 (viii) to the Class B-1 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; 
  
 (ix) to the Class B-2 Notes, any applicable Basis Risk
Shortfall for such Class and such Payment Date; and 
  
 (x) to the Certificate Distribution Account, for payment to the Residual Holder (or as otherwise provided in the Trust Agreement), any amount remaining on such Payment Date after application pursuant to clauses (i) through (ix) above.

  
 If such amounts are insufficient to cover the total amount of
any Basis Risk Shortfall, the only other source of coverage will be the Monthly Excess Cashflow, if any, that would otherwise be payable to the Ownership Certificate. 
  
 (d) On the date on which the Cap Agreements have terminated and any amounts therefrom have been paid in accordance with
Section 6.05(c) above, any amounts remaining in the Cap Account shall be paid by the Indenture Trustee to the Ownership Certificate, and the Cap Account shall be terminated by the Indenture Trustee. 
  

 104 

 ARTICLE VII 
  
 THE SECURITIES ADMINISTRATOR 
  
 Section 7.01. Duties of the Securities Administrator. (a) If an Indenture Event of Default has occurred and is continuing, the Securities
Administrator shall exercise the rights and powers vested in it by this Agreement and use the same degree of care and skill in its exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own
affairs. 
  
 (b) Except during the continuance of an Indenture
Event of Default: 
  
 (i) the Securities
Administrator undertakes to perform such duties and only such duties as are specifically set forth in this Agreement and shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Agreement
and no implied covenants or obligations shall be read into this Agreement against the Securities Administrator; and 
  
 (ii) in the absence of bad faith on its part, 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 Securities Administrator and on their face conforming to the requirements of this Agreement; however, the Securities Administrator shall examine the
certificates and opinions to determine whether or not they conform on their face to the requirements of this Agreement. 
  
 (c) The Securities Administrator may not be relieved from liability for its own negligent action, its own negligent failure to act, its own willful
misconduct or its own bad faith, except that: 
  
 (i) this paragraph does not limit the effect of paragraph (b) of this Section; 
  
 (ii) the Securities Administrator shall not be liable for any error of judgment made in good faith by a Responsible Officer unless it is
proved that the Securities Administrator was negligent in ascertaining the pertinent facts; and 
  
 (iii) the Securities Administrator shall not be liable with respect to any action it takes or omits to take in good faith in accordance
with this Agreement. 
  
 Section 7.02. Records. The
Securities Administrator shall maintain appropriate books of account and records relating to services performed hereunder, which books of account and records shall be accessible for inspection by the Issuer and the Depositor at any time during
normal business hours with prior written notification. 
  

 105 

 Section 7.03. Compensation. The Securities Administrator will perform the duties and provide the
services under this Agreement for such compensation as shall be agreed upon between the Securities Administrator and the Master Servicer. 
  
 Section 7.04. Additional Information to be Furnished to the Issuer. The Depositor shall furnish to the Issuer from time to time such additional
information regarding the Collateral as the Issuer shall reasonably request. 
  
 Section 7.05. Independence of the Securities Administrator. For all purposes of this Agreement, the Securities Administrator shall be an independent contractor and shall not be subject to the supervision of the
Issuer or the Owner Trustee with respect to the manner in which it accomplishes the performance of its obligations hereunder. Unless expressly authorized by the Issuer, the Securities Administrator shall have no authority to act for or represent the
Issuer or the Owner Trustee in any way and shall not otherwise be deemed an agent of the Issuer or the Owner Trustee. 
  
 Section 7.06. No Joint Venture. Nothing contained in this Agreement (i) shall constitute the Securities Administrator or the Depositor,
respectively, and either of the Issuer or the Owner Trustee, as members of any partnership, joint venture, association, syndicate, unincorporated business or other separate entity, (ii) shall be construed to impose any liability as such on any of
them or (iii) shall be deemed to confer on any of them any express, implied or apparent authority to incur any obligation or liability on behalf of the others. 
  

Section 7.07. Other Activities of Securities Administrator. Nothing herein shall prevent the Securities Administrator or its Affiliates from
engaging in other businesses or, in its sole discretion, from acting in a similar capacity as an Securities Administrator for any other person or entity even though such person or entity may engage in business activities similar to those of the
Issuer or the Owner Trustee. 
  
 Section 7.08. Resignation and
Removal of Securities Administrator. 
  
 (a) Subject to
Section 7.08(d) hereof, the Securities Administrator may resign its duties hereunder by providing the Issuer with at least 60 days’ prior written notice. 
  

(b) Subject to Section 7.08(d) hereof, the Issuer may remove the Securities Administrator without cause by providing the Securities Administrator with
at least 60 days’ prior written notice. 
  
 (c) Subject to
Section 7.08(d) hereof, the Issuer may remove the Securities Administrator immediately upon written notice of termination from the Issuer to the Securities Administrator if any of the following events shall occur: 
  
 (i) the Securities Administrator shall default in the
performance of any of its duties under this Agreement and, after notice of such default, shall not cure such default within ten days (or, if such default cannot be cured in such time, shall not give within ten days such assurance of cure as shall be
reasonably satisfactory to the Issuer); or 
  

 106 

 (ii) a court having jurisdiction in the premises shall (x) enter a decree or order for
relief, which decree or order shall not have been vacated within 60 days, in respect of the Securities Administrator in any involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or (y) appoint
a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for the Securities Administrator or any substantial part of its property, or (z) order the winding-up or liquidation of the Securities Administrator’s
affairs; or 
  
 (iii) the Securities
Administrator shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent
to the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator or similar official for the Securities Administrator or any substantial part of its property, shall consent to the taking of possession by any such official of
any substantial part of its property, shall make any general assignment for the benefit of creditors or shall fail generally to pay its debts as they become due. 
  
 The Securities Administrator agrees that if any of the events specified in clauses (ii) or (iii) of this Section 7.08(c)
shall occur, it shall give written notice thereof to the Issuer and the Indenture Trustee within seven days after the occurrence of such event. 
  
 (d) No resignation or removal of the Securities Administrator pursuant to this Section shall be effective until (i) a successor Securities Administrator
shall have been appointed by the Issuer in accordance with this Agreement and (ii) such successor Securities Administrator shall have agreed in writing to be bound by the terms of this Agreement in the same manner as the Securities Administrator is
bound hereunder. If a successor Securities Administrator does not take office within 60 days after the retiring Securities Administrator resigns or is removed, the resigning or removed Securities Administrator or the Issuer may petition any court of
competent jurisdiction for the appointment of a successor Securities Administrator. 
  
 (e) In the event of the resignation or removal of the Securities Administrator under the terms of this Agreement, the Issuer shall appoint a successor securities administrator having a combined capital of $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. The appointment of any successor Securities Administrator
shall be effective only after receipt of a letter from each Rating Agency to the effect that such proposed appointment will not cause a reduction or withdrawal of the then current ratings of the Notes. 
  

 107 

 (f) Subject to Sections 7.08(d) and 7.08(d) above, the Securities Administrator acknowledges that upon
the appointment of a successor Master Servicer pursuant to Section 8.01, the Securities Administrator shall immediately resign and such successor Master Servicer shall automatically become the Securities Administrator under this Agreement. Any such
successor Master Servicer shall be required to agree to assume the duties of the Securities Administrator under the terms and conditions of this Agreement and the other Operative Agreements in its acceptance of appointment as successor Master
Servicer. 
  
 Section 7.09. Action upon Termination,
Resignation or Removal of the Securities Administrator. Promptly upon the effective date of termination of this Agreement or the resignation or removal of the Securities Administrator pursuant to Section 7.08 hereof, the Securities Administrator
shall be entitled to be paid all reimbursable expenses, including any reasonable out-of-pocket attorneys’ fees, accruing to it to the date of such termination, resignation or removal. The Securities Administrator shall forthwith upon such
termination pursuant to Section 7.08 deliver to the successor Securities Administrator all property and documents of or relating to the Collateral then in the custody of the Securities Administrator, or if this Agreement has been terminated, to the
Depositor. In the event of the resignation or removal of the Securities Administrator pursuant to Section 7.08, the Securities Administrator shall cooperate with the Issuer and take all reasonable steps requested to assist the Issuer in making an
orderly transfer of the duties of the Securities Administrator. 
  
 ARTICLE VIII 
  
 MASTER SERVICER EVENTS OF DEFAULT

  
 Section 8.01. Master Servicer Events of Default; Indenture
Trustee To Act; Appointment of Successor. 
  
 (a) The
occurrence of any one or more of the following events shall constitute a “Master Servicer Event of Default”: 
  
 (i) Any failure by the Master Servicer to cause to be deposited in the Collection Account any amount so required to be deposited pursuant
to this Agreement (other than a Monthly Advance), and such failure continues unremedied for a period of three Business Days after the date upon which written notice of such failure, requiring the same to be remedied, shall have been given to the
Master Servicer; 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 on the part of the Master Servicer contained in this Agreement which continues unremedied for a period of 60 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 and the Indenture Trustee by the Majority
Noteholders; or 
  

 108 

 (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 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 servicer as specified in Section 5.19 hereof; or 
  
 (vii) If a representation or warranty set forth in Section
5.01 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 and the Indenture Trustee by the Majority Noteholders; 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 Majority Noteholders; or 
  
 (ix) The Master Servicer has notice or actual knowledge that the Servicer at any time is not either a Fannie Mae- or Freddie Mac-approved
Seller/Servicer, and the Master Servicer has not terminated the rights and obligations of such Servicer under this Agreement and replaced the Servicer with an Fannie Mae- or Freddie Mac-approved servicer within 60 days of the date the Master
Servicer receives such notice or acquires such actual knowledge; or 
  

 109 

 (x) Any failure of the Master Servicer to remit to the Indenture Trustee any Monthly
Advance required to be made to the Indenture Trustee for the benefit of Noteholders under the terms of this Agreement, which failure continues unremedied as of the close of business on the Business Day prior to a Payment Date. 
  
 If a Master Servicer Event of Default described in clauses (i) through (ix)
of this Section 8.01 shall occur, then, in each and every case, subject to applicable law, so long as any such Master Servicer Event of Default shall not have been remedied within any period of time prescribed by this Section 8.01, the Indenture
Trustee, upon obtaining actual knowledge thereof, by notice in writing to the Master Servicer may, and shall, if so directed by the Majority Noteholders, terminate all of the rights and obligations of the Master Servicer hereunder and in and to the
Mortgage Loans and the proceeds thereof. If a Master Servicer Event of Default described in clause (x) of this Section 8.01 shall occur, then, in each and every case, subject to applicable law, so long as such Master Servicer Event of Default shall
not have been remedied within the time period prescribed by clause (x) of this Section 8.01, the Indenture Trustee, by notice in writing to the Master Servicer, shall promptly terminate all of the rights and obligations of the Master Servicer
hereunder and in and to the Mortgage Loans and the proceeds thereof. On or after the receipt by the Master Servicer of such written notice, all authority and power of the Master Servicer, and only in its capacity as Master Servicer under this
Agreement, whether with respect to the Mortgage Loans or otherwise, shall pass to and be vested in the Indenture Trustee pursuant to and under the terms of this Agreement; and the Indenture Trustee is hereby authorized and empowered to execute and
deliver, on behalf of the defaulting 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 or assignment of the Mortgage Loans and related documents or otherwise. The defaulting Master Servicer agrees to cooperate with the Indenture Trustee in effecting the termination of the
defaulting Master Servicer’s responsibilities and rights hereunder as Master Servicer including, without limitation, notifying the Servicer of the assignment of the master servicing function and providing the Indenture Trustee or its designee
all documents and records in electronic or other form reasonably requested by it to enable the Indenture Trustee or its designee to assume the defaulting Master Servicer’s functions hereunder and the transfer to the Indenture Trustee for
administration by it of all amounts which shall at the time be or should have been deposited by the defaulting Master Servicer in the Collection Account maintained by such defaulting Master Servicer and any other account or fund maintained with
respect to the Notes or thereafter received with respect to the Mortgage Loans. The Master Servicer being terminated shall bear all reasonable out-of-pocket costs of a master servicing transfer, including but not limited to those of the Indenture
Trustee, legal fees and expenses, accounting and financial consulting fees and expenses, and costs of amending the Agreement, if necessary. 
  

 110 

 The Indenture Trustee shall be entitled to be reimbursed from the Master Servicer (or by the Trust
Estate, if the Master Servicer is unable to fulfill its obligations hereunder) for all costs associated with the transfer of servicing from the predecessor Master Servicer, including, without limitation, any costs or expenses associated with the
complete transfer of all servicing data and the completion, correction or manipulation of such servicing data as may be required by the Indenture Trustee to correct any errors or insufficiencies in the servicing data or otherwise to enable the
Indenture Trustee to master service the Mortgage Loans properly and effectively. If the terminated Master Servicer does not pay such reimbursement within thirty (30) days of its receipt of an invoice therefore, such reimbursement shall be an expense
of the Trust Estate and the Indenture Trustee shall be entitled to withdraw such reimbursement from amounts on deposit in the Collection Account pursuant to Section 5.07(viii); provided that the terminated Master Servicer shall reimburse the
Trust Estate for any such expense incurred by the Trust Estate; and provided, further, that the Indenture Trustee shall take such action, if any, as provided in the Indenture and as directed by the Noteholders pursuant thereto with
respect to pursuing any remedy against any party obligated to make such reimbursement. 
  
 Notwithstanding the termination of its activities as Master Servicer, each terminated Master Servicer shall continue to be entitled to reimbursement to the extent provided in Section 5.07 to the extent such
reimbursement relates to the period prior to such Master Servicer’s termination. 
  
 If any Master Servicer Event of Default shall occur, of which a Responsible Officer of the Indenture Trustee has actual knowledge, the Indenture Trustee shall promptly notify each Rating Agency of the nature and
extent of such Master Servicer Event of Default. The Securities Administrator or the Master Servicer shall immediately give written notice by facsimile to the Indenture Trustee upon the Master Servicer’s failure to remit Monthly Advances on the
date specified herein. 
  
 (b) On and after the time the Master
Servicer receives a notice of termination from the Indenture Trustee pursuant to Section 8.01(a) or the Indenture Trustee receives the resignation of the Master Servicer evidenced by an Opinion of Counsel pursuant to Section 5.20, the Indenture
Trustee, unless another master servicer shall have been appointed, shall be the successor in all respects to the Master Servicer in its capacity as such under this Agreement and the transactions set forth or provided for herein and shall have all
the rights and powers and be subject to all the responsibilities, duties and liabilities relating thereto and arising thereafter placed on the Master Servicer hereunder, including the obligation to make Monthly Advances; provided,
however, that any failure to perform such duties or responsibilities caused by the Master Servicer’s failure to provide information required by this Agreement shall not be considered a default by the Indenture Trustee hereunder. In
addition, the Indenture Trustee shall have no responsibility for any act or omission of the Master Servicer prior to the issuance of any notice of termination and shall have no liability relating to the representations and warranties of the Master
Servicer set forth in Section 5.01. In the Indenture Trustee’s capacity as such successor, the Indenture Trustee shall have the same limitations on liability herein granted to the Master Servicer. As compensation therefor, the Indenture Trustee
shall be entitled to receive all compensation payable to the Master Servicer under this Agreement. 
  

 111 

 (c) 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, appoint, or petition a court of competent jurisdiction to appoint, any established housing and home finance institution servicer, master servicer, servicing or mortgage servicing institution having a net worth of
not less than $15,000,000 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. Such successor Master Servicer may be an Affiliate of the Indenture Trustee; provided, however, that, unless such Affiliate meets the net worth requirements and other standards set forth
herein for a successor master servicer, the Indenture Trustee, in its individual capacity shall agree, at the time of such designation, to be and remain liable to the Issuer and the Indenture Trustee for such Affiliate’s actions and omissions
in performing its duties hereunder. In connection with such appointment and assumption, the Indenture Trustee may make such arrangements for the compensation of such successor out of payments on the Mortgage Loans as it and such successor shall
agree; provided, however, that no such compensation shall be in excess of that permitted to the Master Servicer hereunder. The Indenture Trustee and such successor shall take such actions, consistent with this Agreement, as shall be
necessary to effectuate any such succession and may make other arrangements with respect to the servicing to be conducted hereunder which are not inconsistent herewith. The Master Servicer shall cooperate with the Indenture Trustee and any successor
master servicer in effecting the termination of the Master Servicer’s responsibilities and rights hereunder including, without limitation, notifying the Servicer of the assignment of the master servicing functions and providing the Indenture
Trustee and successor master servicer, as applicable, all documents and records in electronic or other form reasonably requested by it to enable it to assume the Master Servicer’s functions hereunder and the transfer to the Indenture Trustee or
such successor master servicer, as applicable, all amounts or investment property which shall at the time be or should have been deposited by the Master Servicer in the Collection Account and any other account or fund maintained with respect to the
Notes or thereafter be received with respect to the Mortgage Loans. 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
payment hereunder or any portion thereof caused by (i) the failure of the Master Servicer to deliver, or any delay in delivering, cash, documents or records to it, (ii) the failure of the Master Servicer to cooperate as required by this Agreement,
(iii) the failure of the Master Servicer to deliver the Mortgage Loan data to the Indenture Trustee as required by this Agreement or (iv) restrictions imposed by any regulatory authority having jurisdiction over the Master Servicer. 
  
 Section 8.02. Additional Remedies of Indenture Trustee Upon Event of
Default. During the continuance of any Master Servicer Event of Default, so long as such Master Servicer Event of Default shall not have been remedied, the Indenture Trustee, in addition to the rights specified in Section 8.01, shall have the
right, in its own name and as trustee of an express trust, to take all actions now or hereafter existing at law, in equity or by statute to enforce its rights and remedies 

  

 112 

 
and to protect the interests, and enforce the rights and remedies, of the Noteholders (including the institution and prosecution of all judicial,
administrative and other proceedings and the filings of proofs of claim and debt in connection therewith). Except as otherwise expressly provided in this Agreement, no remedy provided for by this Agreement shall be exclusive of any other remedy, and
each and every remedy shall be cumulative and in addition to any other remedy, and no delay or omission to exercise any right or remedy shall impair any such right or remedy or shall be deemed to be a waiver of any Event of Default. 
  
 Section 8.03. Waiver of Defaults. The Majority Noteholders may, on
behalf of all Noteholders, waive any default or Master Servicer Event of Default by the Master Servicer in the performance of its obligations hereunder, except that a default in the making of any required deposit to the Collection Account that would
result in a failure of the Securities Administrator to make any required payment of principal of or interest on the Notes may only be waived with the consent of 100% of the affected Noteholders. Upon any such waiver of a past default, such default
shall cease to exist, and any Event of Default 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 thereon except
to the extent expressly so waived. 
  
 Section 8.04.
Notification to Holders. Upon termination of the Master Servicer or appointment of a successor to the Master Servicer, in each case as provided herein, the Indenture Trustee shall promptly mail notice thereof by first class mail to the
Noteholders at their respective addresses appearing on the applicable Register. The Indenture Trustee shall also, within 45 days after the occurrence of any Master Servicer Event of Default known to the Indenture Trustee, give written notice thereof
to Noteholders, unless such Event of Default shall have been cured or waived prior to the issuance of such notice and within such 45-day period. 
  
 Section 8.05. Directions by Noteholders and Duties of Indenture Trustee During Master Servicer Event of Default. During the continuance of any
Master Servicer Event of Default, the Majority Noteholders may direct the time, method and place of conducting any proceeding for any remedy available to the Indenture Trustee, or exercising any trust or power conferred upon the Indenture Trustee,
under this Agreement; provided, however, that the Indenture Trustee shall be under no obligation to pursue any such remedy, or to exercise any of the trusts or powers vested in it by this Agreement (including, without limitation, (i) the
conducting or defending of any administrative action or litigation hereunder or in relation hereto and (ii) the terminating of the Master Servicer or any successor master servicer from its rights and duties as master servicer hereunder) at the
request, order or direction of any of the Noteholders, unless such Noteholders shall have offered to the Indenture Trustee security or indemnity reasonably satisfactory to it against the cost, expenses and liabilities which may be incurred therein
or thereby; and, provided further, that, the Indenture Trustee shall have the right to decline to follow any such direction if the Indenture Trustee, in accordance with an Opinion of Counsel, determines that the action or proceeding so
directed may not lawfully be taken or if the Indenture Trustee in good faith determines that the action or proceeding so directed would involve it in personal liability for which it is not indemnified to its satisfaction or be unjustly prejudicial
to the non-assenting Noteholders. 
  

 113 

 Section 8.06. Action Upon Certain Failures of the Master Servicer and Upon Master Servicer Event of
Default. In the event that a Responsible Officer of the Indenture Trustee or the Securities Administrator shall have actual knowledge of any action or inaction of the Master Servicer that would become a Master Servicer Event of Default upon the
Master Servicer’s failure to remedy the same after notice, the Indenture Trustee or Securities Administrator, as applicable, shall give notice thereof to the Master Servicer. 
  
 Section 8.07. Preparation of Reports. 
  
 (a) The Depositor shall prepare or cause to be prepared the initial current report on Form 8-K. Thereafter, within 15 days
after each Payment Date, the Securities Administrator shall, in accordance with industry standards customary for securities similar to the Notes as required by the Exchange Act and the rules and regulations of the Securities and Exchange Commission
(the “Commission”), file with the Commission via the Electronic Data Gathering and Retrieval System (EDGAR), a Form 8-K with a copy of the statement to the Noteholders for such Payment Date as an exhibit thereto. Prior to January 30, 2006,
the Securities Administrator shall, in accordance with industry standards applicable to the Notes, file a Form 15 Suspension Notification with respect to the Issuer, if applicable. Prior to March 31, 2006 and prior to March 31 in each succeeding
year so long as a Form 15 has not been filed for the prior calendar year, the Securities Administrator shall file (and the Master Servicer will execute) a Form 10-K, in substance conforming to industry standards applicable to the Notes, with respect
to the Issuer. The Form 10-K shall include the certification required pursuant to Rule 13a-14 under the Exchange Act (the “Form 10-K Certification,” which Form 10-K Certification shall be signed by the Master Servicer). The Indenture
Trustee and the Securities Administrator shall have no liability for any delay in filing the Form 10-K due to the failure of such party to timely sign the Form 10-K or Form 10-K Certification. The Depositor hereby grants, and in the case of the Form
10-K Certification, an Authorized Officer of the Depositor will grant, to the Master Servicer and the Securities Administrator a limited power of attorney to execute and file each such document on behalf of the Depositor. Such power of attorney
shall continue until either the earlier of (i) receipt by the Master Servicer and the Securities Administrator from the Depositor of written termination of such power of attorney and (ii) the termination of the Issuer. The Depositor agrees to
promptly furnish to the Securities Administrator, from time to time upon request, such further information, reports, and financial statements within its control related to this Agreement and the Mortgage Loans as the Depositor reasonably deems
appropriate 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. 
  
 (b) Each person (including their officers or directors) that signs any Form
10-K Certification shall be entitled to indemnification from the Trust Estate for any liability or expense incurred by it in connection with such certification, other than any liability or expense attributable to such Person’s own bad faith,
negligence or willful misconduct. The provisions of this subsection shall survive any termination of this Agreement and the resignation or removal of such Person. 
  

 114 

 (c) To the extent that, following the Closing Date, the contents of Forms 8-K, 10-K or other Forms
required by the Exchange Act and the Rules and Regulations of the Commission and the time by which such Forms are required to be filed, differs from the provisions of this Agreement, the parties hereto hereby agree that each shall reasonably
cooperate to amend the provisions of this Agreement (in accordance with Section 10.03) in order to comply with such amended reporting requirements and such amendment of this Agreement. Any such amendment may result in the reduction of the reports
filed by the Servicer under the Exchange Act. Notwithstanding the foregoing, none of the Depositor, the Master Servicer, the Servicer or the Securities Administrator shall be obligated to enter into any amendment pursuant to this Section that
adversely affects its obligations and immunities under this Agreement. 
  
 ARTICLE IX 
  
 TERMINATION 
  
 Section 9.01. Termination. The respective obligations and
responsibilities of the Master Servicer, the Securities Administrator, the Depositor, the Issuer, the Servicer and the Indenture Trustee created hereby (other than obligations expressly stated to survive the termination of the Trust) shall terminate
on the day after the day on which the Notes are paid in full (including payment pursuant to Section 9.02 below) (the “Termination Date”). 
  
 Section 9.02. Termination Prior to Maturity Date; Optional Redemption. 
  
 (a) On any Payment Date occurring on or after the Initial Purchase Date, the Residual Holder shall have the option to
purchase the Mortgage Loans, any REO Property and any other property remaining in the Trust for a price equal to the Termination Price. The Master Servicer and the Servicer will be reimbursed from the Termination Price for any outstanding Monthly
Advances, Servicing Advances and unpaid Servicing Fees and other amounts not previously reimbursed pursuant to the provisions of this Agreement, as applicable, and the Securities Administrator, the Owner Trustee, the Indenture Trustee and the
Custodian shall be reimbursed for any previously unreimbursed amounts for which they are entitled to be reimbursed pursuant to this Agreement, the Indenture, the Custodial Agreement or the Trust Agreement, as applicable. If such option is exercised,
the Trust will be terminated resulting in a mandatory redemption of the Notes. The Residual Holder shall deliver written notice of its intention to exercise such option to the Issuer, the Securities Administrator, the Indenture Trustee and the
Master Servicer not less than 15 days prior to the applicable Payment Date. If the Residual Holder fails to exercise such option on the Initial Purchase Date, the Note Interest Rate for each Class of Notes will be increased as set forth in the table
in the Preliminary Statement herein beginning on the Step-up Date and for each Payment Date thereafter. HMB Acceptance Corp. shall deliver written notice of its intention to exercise such option to the Issuer, the Indenture Trustee and the Master
Servicer not less than ten days prior to the applicable Payment Date. 
  

 115 

 In connection with such purchase, the Residual Holder shall direct the Servicer to remit to the
Securities Administrator all amounts then on deposit in the Custodial Account (other than amounts permitted to be withdrawn by it pursuant to Section 4.02(e)) for deposit to the Collection Account. 
  
 (b) Promptly following any such purchase pursuant to paragraph (a) of this
Section and receipt of an Officer’s Certificate of the Residual Holder that the purchase price has been deposited in the Collection Account, the Indenture Trustee or the Custodian shall release the Mortgage Files to the purchaser of such
Mortgage Loans pursuant to this Section 9.02, or otherwise upon its order. 
  
 Section 9.03. Certain Notices upon Final Payment. The Master Servicer or the Securities Administrator, as applicable, shall give the Issuer, the Indenture Trustee, the Owner Trustee, each Rating Agency, each
Noteholder and the Depositor at least thirty (30) days’ prior written notice of the date on which the Trust is expected to terminate in accordance with Section 9.01, or the date on which the Notes will be redeemed in accordance with Section
9.02. Not later than the fifth Business Day in the Collection Period in which the final payment in respect to the Notes is payable to the Noteholders, the Indenture Trustee shall mail to the Noteholders a notice specifying the procedures with
respect to such final payment. The Securities Administrator on behalf of the Indenture Trustee shall give a copy of such notice to each Rating Agency at the time such notice is given to Noteholders. Following the final payment thereon, such Notes
shall become void, no longer outstanding and no longer evidence any right or interest in the Mortgage Loans, the Mortgage Files or any proceeds of the foregoing. 
  
 ARTICLE X 
  
 MISCELLANEOUS PROVISIONS 
  
 Section 10.01. Binding Nature of Agreement; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns. 
  
 Section
10.02. Entire Agreement. This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements
and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the
terms hereof. 
  
 Section 10.03. Amendment. 
  
 (a) This Agreement may be amended from time to time by the parties hereto,
without notice to or the consent of any of the Holders of the Notes, (i) to cure any ambiguity, (ii) to cause the provisions herein to conform to or be consistent with or in furtherance of the statements made 

  

 116 

 
with respect to the Notes, the Trust or this Agreement in any Offering Document, or to correct or supplement any provision herein which may be inconsistent
with any other provisions herein or in any other Operative Agreement, to make any other provisions with respect to matters or questions arising under this Agreement, (iii) to make any other provision with respect to matters or questions arising
under this Agreement or (iv) to add, delete, or amend any provisions to the extent necessary or desirable to comply with any requirements imposed by the Code or ERISA and applicable regulations. No such amendment effected pursuant to the preceding
sentence shall, as evidenced by an Opinion of Counsel (which shall be an expense of the party requesting such amendment and shall not be an expense of the Trust or the Indenture Trustee), (1) affect the status of the Notes as debt for federal income
tax purposes and (2) nor shall such amendment effected pursuant to clause (iii) of such sentence adversely affect in any material respect the interests of any Holder. Prior to entering into any amendment without the consent of Holders pursuant to
this paragraph, the Indenture Trustee may require an Opinion of Counsel (at the expense of the party requesting such amendment) to the effect that such amendment is permitted under this paragraph. Any such amendment shall be deemed not to adversely
affect in any material respect any Holder, if the Indenture Trustee receives written confirmation from each Rating Agency that such amendment will not cause such Rating Agency to reduce the then current rating assigned to the Notes. 
  
 (b) This Agreement may also be amended from time to time by the parties
hereto, with the consent of the Noteholders representing 66 2/3% Voting Interests for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Holders; provided, however, that no such amendment may (i) reduce in any manner the amount of, or
delay the timing of, payments which are required to be paid on any Class of Notes, without the consent of the Noteholders of such Class or (ii) reduce the aforesaid percentages of Class Principal Amount of Notes, the Holders of which are required to
consent to any such amendment without the consent of the Holders of 100% of the Class Principal Amount of the Notes. For purposes of this paragraph, references to “Holder” or “Holders” shall be deemed to include, in the case of
Book-Entry Notes, the related Note Owners. 
  
 (c) Promptly
after the execution of any such amendment, the Indenture Trustee shall furnish written notification of the substance of such amendment to each Holder, the Depositor and to each Rating Agency. 
  
 (d) It shall not be necessary for the consent of Holders under this Section
10.03 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining such consents and of evidencing the authorization of the execution thereof by
Holders shall be subject to such reasonable regulations as the Indenture Trustee may prescribe. 
  
 Section 10.04. Acts of Noteholders. Except as otherwise specifically provided herein, whenever Noteholder action, consent or approval is required
under this Agreement, such action, consent or approval shall be deemed to have been taken or given on behalf of, and shall be binding upon, all Noteholders if the Majority Noteholders agree to take such action or give such consent or approval.

  

 117 

 Section 10.05. Recordation of Agreement. To the extent permitted by applicable law, this
Agreement, or a memorandum thereof if permitted under applicable law, is subject to recordation in all appropriate public offices for real property records in all of the counties or other comparable jurisdictions in which any or all of the
properties subject to the Mortgages are situated, and in any other appropriate public recording office or elsewhere, such recordation to be effected by the Depositor on direction and at the expense of Holders of not less than 66 2/3% of the Note Principal Balance of the Notes and of the Holder of the Ownership Certificate requesting such
recordation, but only when accompanied by an Opinion of Counsel to the effect that such recordation materially and beneficially affects the interests of the Noteholders, or is necessary for the administration or servicing of the Mortgage Loans.

  
 Section 10.06. Governing Law. THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  
 Section 10.07. Notices. All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given if mailed by overnight courier, addressed as follows or delivered by facsimile (or such other
address as may hereafter be furnished to the other party by like notice): 
  

	 	(i)	if to the Seller: 

  
 HomeBanc Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta, Georgia 30319 
 Attention: Debra F. Watkins, EVP Capital Markets 
 Facsimile: (404) 705-2301 
  
 with a copy to: 
  
 HomeBanc Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta, Georgia 30319 
 Attention: General Counsel 
 Facsimile: (404) 303-4069 
  

 118 

	 	(ii)	if to the Servicer: 

  
 HomeBanc Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta, Georgia 30319 
 Attention: Debra F. Watkins, EVP Capital Markets 
 Facsimile: (404) 705-2301 
  
 with a copy to: 
  
 HomeBanc Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta, Georgia 30319 
 Attention: General Counsel 
 Facsimile: (404) 303-4069 
  

	 	(iii)	if to the Master Servicer: 

  
 Wells Fargo Bank, N.A. 
 P.O. Box 98 
 Columbia, Maryland 21046 
 Attention: HomeBanc Mortgage Trust 2005-1 
 (or in the case of overnight deliveries, 
 9062 Old Annapolis Road 
 Columbia, Maryland 21045) 
 Telephone: (410) 884-2000 
 Facsimile: (410) 715-2380 
  

	 	(iv)	if to the Securities Administrator: 

  
 Wells Fargo Bank, N.A. 
 P.O. Box 98 
 Columbia, Maryland 21046 
 Attention: HomeBanc Mortgage Trust 2005-1 
 (or in the case of overnight deliveries, 
 9062 Old Annapolis Road 
 Columbia, Maryland 21045) 
 Telephone: (410) 884-2000 
 Facsimile: (410) 715-2380 
  

 119 

	 	(v)	if to the Indenture Trustee: 

  
 U.S. Bank National Association 
 One Federal Street, Third Floor 
 Boston, Massachusetts 02110 
 Attention: Corporate Trust Services/HomeBanc 2005-1 
  
 if to the Depositor: 
  
 HMB Acceptance Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta, Georgia 30319 
 Attention: Debra F. Watkins, EVP Capital Markets 
 Facsimile: (404) 705-2301 
  
 with a copy to: 
  
 HMB Acceptance Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta, Georgia 30319 
 Attention: General Counsel 
 Facsimile: (404) 303-4069 
  

	 	(vi)	if to the Issuer: 

  
 c/o Wilmington Trust Company 
 Rodney Square North 
 1100 North Market Street 
 Wilmington, Delaware 19890 
 Attention: Corporate Trust Administration/ HomeBanc 2005-1 
  
 All demands, notices and communications to a party hereunder shall be in writing and shall be deemed to have been duly given when delivered to such party at the relevant address, facsimile number or electronic mail
address set forth above or at such other address, facsimile number or electronic mail address as such party may designate from time to time by written notice in accordance with this Section 10.07. 
  
 Section 10.08. 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 Holders thereof. 
  

 120 

 Section 10.09. Indulgences; No Waivers. Neither the failure nor any delay on the part of a party
to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any
other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver
shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
  
 Section 10.10. Headings Not To Affect Interpretation. The headings contained in this Agreement are for convenience of reference only, and they
shall not be used in the interpretation hereof. 
  
 Section 10.11.
Benefits of Agreement. Nothing in this Agreement or in the Notes, express or implied, shall give to any Person, other than the parties to this Agreement and their successors hereunder and the Holders of the Notes, any benefit or any legal or
equitable right, power, remedy or claim under this Agreement. Notwithstanding the foregoing, (i) the Owner Trustee shall be an express third party beneficiary of this Agreement and (ii) the Residual Holder shall be an express third party beneficiary
with respect to Section 9.02. 
  
 Section 10.12. Special
Notices to the Rating Agencies. 
  
 (a) The Servicer shall
give prompt notice to each Rating Agency of the occurrence of any of the following events of which it has notice: 
  
 (vii) any amendment to this Agreement pursuant to Section 10.03; and 
  
 (viii) the making of a final payment hereunder. 
  
 (b) All notices to the Rating Agencies provided for by this Section shall be
in writing and sent by first class mail, telecopy or overnight courier, as follows: 
  
 if to Moody’s: 
  
 Moody’s Investors
Service, Inc. 
 99 Church Street 
 New York, New York 10004 
 Fax no.: (212) 553-4392 
  
 if to S&P: 
  
 Standard & Poor’s Ratings Services, a division 
 of The McGraw-Hill Companies, Inc. 
 55 Water Street 
 New York, New York 10041 
 Fax no.: (212)
438-2661 
  

 121 

 (c) The Securities Administrator shall make available to the Rating Agencies each report prepared
pursuant to Section 5.08. 
  
 Section 10.13. Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, and all of which together shall constitute one and the same instrument. 
  
 Section 10.14. Agreement of the Issuer. The Issuer hereby acknowledges and agrees that, to the extent that the Issuer
is deemed to have any interest in any assets of the Depositor that constitute the assets of the trust for any other series of securities with respect to which the Depositor acts as depositor: 
  
 (a) the interest of the Issuer in such assets is subordinate to claims or
rights of the holders of such other series of securities to such assets; and 
  
 (b) this Agreement constitutes a subordination agreement for purposes of Section 510(a) of the Bankruptcy Code. 
  
 Section 10.15. Execution by the Issuer. 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 the Issuer, in the exercise of the powers and authority conferred and vested in it as trustee, (b) each of the representations, undertakings and
agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by Wilmington Trust Company but is made and intended for the purpose of binding only the Issuer, (c) nothing herein
contained shall be construed as creating any liability on 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 Issuer or be liable for the breach or
failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Agreement or any other document. 
  

 122 

 IN WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto by their respective
officers hereunto duly authorized as of the day and year first above written. 
  

			
	 HOMEBANC MORTGAGE TRUST 2005-1,
 as
Issuer

		
	By:	 	WILMINGTON TRUST COMPANY, not in its individual capacity but solely as Owner Trustee
		
	By:	 	 /S/ Heather L. Williamson

	Name:	 	Heather L. Williamson
	Title:	 	Financial Services Officer
	
	 HMB ACCEPTANCE CORP.,
 as
Depositor

		
	By:	 	 /S/ Debra F. Watkins

	Name:	 	Debra F. Watkins
	Title:	 	Executive Vice President
	
	 U.S. BANK NATIONAL ASSOCIATION, not in
 its
individual capacity but solely as Indenture
 Trustee

		
	By:	 	 /S/ Daniel M. Scully, Jr.

	Name:	 	Daniel M. Scully, Jr.
	Title:	 	Assistant Vice President
	
	WELLS FARGO BANK, N.A.,
	as Securities Administrator and Master Servicer
		
	By:	 	 /S/ Stacey Taylor

	Name:	 	Stacey Taylor
	Title:	 	Assistant Vice President

			
	HOMEBANC CORP.,
	as Seller and Servicer
		
	By:	 	 /S/ Debra F. Watkins

	Name:	 	Debra F. Watkins
	Title:	 	Executive Vice President

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

  
 On this 22nd day of February 2005, before me, personally appeared Heather Williamson, known to me to be a Financial Services Officer of
Wilmington Trust Company, one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of said corporation, and acknowledged to me that such corporation executed the within instrument.

  
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written. 
  

	
	 /S/ Kim Carrol

	Notary Public

  
 [NOTARIAL SEAL] 

					
	STATE OF GEORGIA	  	)	  	 
	 	  	: ss.:	  	 
	COUNTY OF FULTON	  	)	  	 

  
 On the 22nd day of February 2005, before me, personally appeared Debra F. Watkins, known to me to be an Executive Vice President of HMB
Acceptance Corp., one of the corporations that executed the within instrument and also known to me to be the person who executed it on behalf of said corporation, and acknowledged to me that such corporation executed the within instrument.

  
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written. 
  

	
	 /S/ Judy Mantia

	Notary Public

  
 [NOTARIAL SEAL] 

					
	COMMONWEALTH OF MASSACHUSETTS	    	)	  	 
	 	    	: ss.:	  	 
	COUNTY OF SUFFOLK	    	)	  	 

  
 On the 22nd of February 2005 before me, a Notary Public in and for said State, personally appeared Daniel M. Scully, Jr. known to me to be
an Assistant Vice President of U.S. Bank National Association, one of the corporations that executed the within instrument and also known to me to be the person who executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument. 
  
 IN WITNESS
WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. 
  

	
	 /S/ Grace Lee

	Notary Public

  
 [NOTARIAL SEAL] 

					
	STATE OF MARYLAND	    	)	  	 
	 	    	: ss.:	  	 
	COUNTY OF BALTIMORE	    	)	  	 

  
 On the 23rd of February 2005 before me, a Notary Public in and for said State, personally appeared Stacey Taylor known to me to be an
Assistant Vice President of Wells Fargo Bank, N.A., a national banking association that executed the within instrument and also known to me to be the person who executed it on behalf of said corporation, and acknowledged to me that such corporation
executed the within instrument. 
  
 IN WITNESS WHEREOF, I have
hereunto set my hand and affixed my official seal the day and year in this certificate first above written. 
  

	
	 /S/ Darron C. Woodus

	Notary Public

  
 [NOTARIAL SEAL] 

					
	STATE OF GEORGIA	    	)	  	 
	 	    	: ss.:	  	 
	COUNTY OF FULTON	    	)	  	 

  
 On the 22nd day of February 2005, before me, personally appeared Debra F. Watkins, known to me to be an Executive Vice President of
HomeBanc Corp., one of the corporations that executed the within instrument and also known to me to be the person who executed it on behalf of said corporation, and acknowledged to me that such corporation executed the within instrument. 

 
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written. 
  

	
	 /S/ Judy Mantia

	Notary Public

  
 [NOTARIAL SEAL] 

 EXHIBIT A-1 
  
 FORM OF INITIAL CERTIFICATION 
  

	
	 ________________
 Date

  
 U.S. Bank National Association

 One Federal Street, Third Floor 
 Boston, Massachusetts 02110

 Attention: Corporate Trust Services/HomeBanc 2005-1 
  
 HMB Acceptance Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta, Georgia 30319 
 Attention: Debra F. Watkins, EVP Capital Markets

  

			
	 Re:
	  	Transfer and Servicing Agreement (the “Transfer and Servicing Agreement”) dated as of February 1, 2005 by and among HMB Acceptance Corp., as Depositor, U.S. Bank National
Association, as Indenture Trustee, Wells Fargo Bank, N.A., as Securities Administrator and Master Servicer, HomeBanc Mortgage Trust 2005-1, as Issuer, and HomeBanc Corp., as Seller and Servicer

  
 Ladies and Gentlemen: 
  
 In accordance with Section 2.02(a) of the Transfer and Servicing Agreement,
subject to review of the contents thereof, the undersigned, as Custodian, hereby certifies that it has received the documents listed in Section 2.01(b) of the Transfer and Servicing Agreement for each Mortgage File pertaining to each Mortgage Loan
listed on Schedule A to the Transfer and Servicing Agreement, subject to any exceptions noted on Schedule I hereto. 
  
 Capitalized words and phrases used herein and not otherwise defined herein shall have the respective meanings assigned to them in the Transfer and
Servicing Agreement. This certificate is subject in all respects to the terms of Section 2.02 of the Transfer and Servicing Agreement and the Transfer and Servicing Agreement sections cross-referenced therein. 
  

			
	 [Custodian]

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

 EXHIBIT A-2 
  
 FORM OF INTERIM CERTIFICATION 
  

	
	 ________________
 Date

  
 U.S. Bank National Association

 One Federal Street, Third Floor 
 Boston, Massachusetts 02110

 Attention: Corporate Trust Services/HomeBanc 2005-1 
  
 HMB Acceptance Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta, Georgia 30319 
 Attention: Debra F. Watkins, EVP Capital Markets

  

			
	 Re:
	  	Transfer and Servicing Agreement (the “Transfer and Servicing Agreement”) dated as of February 1, 2005 by and among HMB Acceptance Corp., as Depositor, U.S. Bank National
Association, as Indenture Trustee, Wells Fargo Bank, N.A., as Securities Administrator and Master Servicer, HomeBanc Mortgage Trust 2005-1, as Issuer, and HomeBanc Corp., as Seller and Servicer

  
 Ladies and Gentlemen: 
  
 In accordance with Section 2.02(b) of the Transfer 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 listed on Schedule I hereto) it (or its custodian) has received the applicable documents
listed in Section 2.01(b) of the Transfer and Servicing Agreement. 
  
 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 identified above and has determined that each
such document appears regular on its face and appears to relate to the Mortgage Loan identified in such document. 
  
 Capitalized words and phrases used herein shall have the respective meanings assigned to them in the Transfer and Servicing Agreement. This certificate is
qualified in all respects by the terms of said Transfer and Servicing Agreement including, but not limited to, Section 2.02(b). 
  

			
	[Custodian]
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  

 A-2-1 

 EXHIBIT A-3 
  
 FORM OF FINAL CERTIFICATION 
  

	
	 ________________
 Date

  
 U.S. Bank National Association

 One Federal Street, Third Floor 
 Boston, Massachusetts 02110

 Attention: Corporate Trust Services/HomeBanc 2005-1 
  
 HMB Acceptance Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta, Georgia 30319 
 Attention: Debra F. Watkins, EVP Capital Markets

  

			
	 Re:
	  	Transfer and Servicing Agreement (the “Transfer and Servicing Agreement”) dated as of February 1, 2005 by and among HMB Acceptance Corp., as Depositor, U.S. Bank National
Association, as Indenture Trustee, Wells Fargo Bank, N.A., as Securities Administrator and Master Servicer, HomeBanc Mortgage Trust 2005-1, as Issuer, and HomeBanc Corp., as Seller and Servicer

  
 Ladies and Gentlemen: 
  
 In accordance with Section 2.02(d) of the Transfer and Servicing Agreement,
the undersigned, as Custodian on behalf of the Indenture Trustee, hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed on Schedule I hereto) it (or its custodian)
has received the applicable documents listed in Section 2.01(b) of the Transfer and Servicing Agreement. 
  
 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 complete and, based on an examination of such documents, the information set forth in the Mortgage Loan Schedule is correct. 
  
 Capitalized words and phrases used herein shall have the respective meanings
assigned to them in the Transfer and Servicing Agreement. This certificate is qualified in all respects by the terms of said Transfer and Servicing Agreement. 
  

			
	[Custodian]
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  

 A-3-1 

 EXHIBIT A-4 
  
 FORM OF ENDORSEMENT 
  
 Pay to the order of U.S. Bank National Association, as indenture trustee (the “Indenture Trustee”) under the Transfer and Servicing Agreement
dated as of February 1, 2005 by and among HMB Acceptance Corp., as Depositor, the Indenture Trustee, Wells Fargo Bank, N.A., as Securities Administrator and Master Servicer, HomeBanc Mortgage Trust 2005-1, as Issuer, and HomeBanc Corp., as Seller
and Servicer, relating to HomeBanc Mortgage Trust 2005-1 Mortgage Backed Notes without recourse. 
  

			
	
	  

 [current signatory on
note]

		
	By:	 	  

	Name:	 	 
	Title:	 	 

  

 A-4-1 

 EXHIBIT A-5 
  
 REQUEST FOR RELEASE 
  
 U.S. Bank National Association 
 One Federal Street, Third Floor 

Boston, Massachusetts 02110 
 Attention: Corporate Trust Services/HomeBanc
2005-1 
  
 JPMorgan Chase Bank, National Association 
 1111 Fannin Street, 12th Floor 
 Houston, Texas 77002 
  

			
	 Re:
	  	Transfer and Servicing Agreement (the “Transfer and Servicing Agreement”) dated as of February 1, 2005 by and among HMB Acceptance Corp., as Depositor, U.S. Bank National
Association, as Indenture Trustee, Wells Fargo Bank, N.A., as Securities Administrator and Master Servicer, HomeBanc Mortgage Trust 2005-1, as Issuer, and HomeBanc Corp., as Seller and Servicer

  
 In connection with the
administration of the Mortgage Loans held by the Custodian for the benefit of the Indenture Trustee pursuant to the above-captioned Transfer 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 and proceeds have been deposited into the Collection Account	  	 
				
	 ̈	  	2.	 	Foreclosure	  	 
				
	 ̈	  	3.	 	Substitution	  	 
				
	 ̈	  	4.	 	Other Liquidation	  	 
			
	 ̈	  	5.	 	Nonliquidation
                                Reason:

  

 A-5-1 

			
	By:	 	  

	Name:	 	 
	Title:	 	 
		
	Issuer:	 	  

		
	Address:	 	  

 EXHIBIT B 
  

FORM OF LOST NOTE AFFIDAVIT 
  
 I,
                                        
                                        
                , being duly sworn, do hereby state under oath that: 
  
 1. I am a duly elected
                                        
     of HomeBanc Corp. (the “Company”) and am duly authorized to make this affidavit. 
  
 2. This affidavit is being delivered in connection with the transfer of the Mortgage Loan described in Paragraph 3 hereof by the Company pursuant to the
Transfer and Servicing Agreement, dated as of February 1, 2005, among HomeBanc Mortgage Trust 2005-1, as Issuer, HMB Acceptance Corp., as Depositor, Wells Fargo Bank, N.A., as Master Servicer and as Securities Administrator, HomeBanc Corp. as Seller
and Servicer, and U.S. Bank National Association, as Indenture Trustee, relating to the HomeBanc Mortgage Trust 2005-1 Mortgage Backed Notes (the “Agreement”). 
  
 3. The
                                       
  is the payee under the following described Mortgage Note (“Mortgage Note”) which evidences the obligation of the borrower(s) to repay the Mortgage Loan: 
  
 Loan Number:
                                        
                             
 Mortgage Note
Date:                                       
                     
 Borrower(s):
                                        
                                
 Original Payee (if not the Company):
                      
 Original
Amount:                                       
                          
 Mortgage Rate:
                                        
                           
 Address of Mortgaged Property:
                                 
 __________________________________________________ 
  
 4. The Company is the lawful owner of the Mortgage Note and has not cancelled, altered, assigned or hypothecated the Mortgage Note. 
  
 5. A thorough and diligent search for the executed original Mortgage Note was
undertaken and was unsuccessful. 
  
 6. Attached hereto is a true
and correct copy of the Mortgage Note. 
  
 7. The Mortgage Note
has not been endorsed by the Company in any manner inconsistent with its transfer of the Mortgage Loan under the Mortgage Loan Purchase Agreement. 
  
 8. Without limiting the generality of the rights and remedies of the Indenture Trustee contained in the Agreement, the Company hereby confirms and agrees
that in the event the inability to produce the executed original Mortgage Note results in a breach of the representations, warranties and covenants appearing in Exhibit A to the Mortgage Loan Purchase Agreement and Section 3.01 of the Agreement, the
Company shall repurchase the Mortgage 

  

 B-1 

 
Loan at the Purchase Price and otherwise in accordance with Section 3.03 of the Agreement. In addition, the Company covenants and agrees to indemnify the
Indenture Trustee and the Trust from and hold them harmless against any and all losses, liabilities, damages, claims or expenses arising from the Company’s failure to have delivered the Mortgage Note to the Indenture Trustee, including without
limitation any such losses, liabilities, damages, claims or expenses arising from any action to enforce the indebtedness evidenced by the Mortgage Note or any claim by any third party who is the holder of such indebtedness by virtue of possession of
the Mortgage Note. 
  
 9. In the event that the Company locates
the executed original Mortgage Note, it shall promptly provide the Mortgage Note to the Indenture Trustee. 
  
 10. Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Agreement. 
  
 Date:
                                        

  

	
	  

	 (signature)

	
	  

	 (print name)

	
	  

	 (print title)

  

 B-2 

 EXHIBIT C 
  

CUSTODIAL AGREEMENT 
  

 C-1 

 EXHIBIT D 
  

CUSTODIAL ACCOUNT LETTER AGREEMENT 
  
                     
    ,              
  

			
	 To:
	 	 ____________________________

		
	 	 	 ____________________________

		
	 	 	 ____________________________

	 	 	 (the “Depository”)

  
 As Servicer under the
Transfer and Servicing Agreement dated as of February 1, 2005, by and among HMB Acceptance Corporation, as Depositor, you, as Indenture Trustee, Wells Fargo Bank, N.A., as Securities Administrator and Master Servicer, HomeBanc Mortgage Trust 2005-1,
as Issuer, HomeBanc Corporation, as Seller and Services (the “Transfer and Servicing Agreement”), we hereby authorize and request you to establish an account, as a Custodial Account pursuant to Section 4.02(d) of the Transfer and Servicing
Agreement, designated as “HomeBanc Corporation in trust for U.S. Bank National Association, as Indenture Trustee for the HomeBanc Mortgage Trust 2005-1.” All deposits in the account shall be subject to withdrawal therefrom by order signed
by the Servicer. This letter is submitted to you in duplicate. Please execute and return one original to us. 
  

			
	 HOMEBANC CORPORATION
Servicer

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	 Date:
	 	  

  

 D-1 

 The undersigned, as Depository, hereby certifies that the above described account has been established
under Account Number                     , at the office of the Depository indicated above, and agrees to honor withdrawals on such account as
provided above. 
  

			
	

	 	 	Depository
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	 Date:
	 	 

  

 D-2 

 EXHIBIT E 
  

ESCROW ACCOUNT LETTER AGREEMENT 
  
                     
    ,              
  

			
	 To:
	 	_________________________
		
	 	 	_________________________
		
	 	 	_________________________
	 	 	 (the “Depository”)

  
 As Servicer under the
Transfer and Servicing Agreement dated as of February 1, 2005, by and among HMB Acceptance Corp., as Depositor, you, as Indenture Trustee, Wells Fargo Bank, N.A., as Securities Administrator and Master Servicer, HomeBanc Mortgage Trust 2005-1, as
Issuer and HomeBanc Corp. as Seller and Servicer (the “Transfer and Servicing Agreement”), we hereby authorize and request you to establish an account, as an Escrow Account pursuant to Section 4.02(f) of the Transfer and Servicing
Agreement, designated as “HomeBanc Corp. in trust for U.S. Bank National Association, as Indenture Trustee for the HomeBanc Mortgage Trust 2005-1.” All deposits in the account shall be subject to withdrawal therefrom by order signed by the
Servicer. This letter is submitted to you in duplicate. Please execute and return one original to us. 
  

			
	 HOMEBANC CORP.
         Servicer

		
	 By:
	 	  

	 Name:
	 	  

  

 E-1 

 The undersigned, as Depository, hereby certifies that the above described account has been established
under Account Number             , at the office of the Depository indicated above, and agrees to honor withdrawals on such account as provided above. 
  

			
	  

	Depository
		
	 By:
	 	  

	 Name:
	 	  

  

 E-2 

 EXHIBIT F 
  

PART I: 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 servicer at the end of processing cycle, as reported by Servicer.	  	 	  	MM/DD/YYYY
				
	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 by the courts	  	 	  	MM/DD/YYYY
				
	BANKRUPTCY_DCHRG_DISM_DATE	  	The Date The Loan Is Removed From Bankruptcy. Either by Dismissal, Discharged and/or a Motion For Relief Was Granted.	  	 	  	MM/DD/YYYY
				
	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 instructions to begin foreclosure proceedings.	  	 	  	MM/DD/YYYY
				
	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 Action	  	 	  	MM/DD/YYYY
				
	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 from the borrower.	  	 	  	MM/DD/YYYY
				
	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

  

 F-1 

							
	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 price opinion or appraisal.	  	2	  	 
				
	REPAIRED_PROP_VAL	  	The amount the property would be worth if repairs are completed pursuant to a broker’s price opinion or appraisal.	  	2	  	 
				
	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 Insurance Company.	  	 	  	MM/DD/YYYY
				
	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 Insurer	  	 	  	MM/DD/YYYY
				
	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 ($)

  

 F-2 

 PART II: Standard File Codes – Delinquency Reporting 
  
 The Loss Mit Type field should show the approved Loss Mitigation Code as follows:

  

	 	•	 	ASUM- Approved Assumption 

  

	 	•	 	BAP- Borrower Assistance Program 

  

	 	•	 	CO- Charge Off 

  

	 	•	 	DIL- Deed-in-Lieu 

  

	 	•	 	FFA- Formal Forbearance Agreement 

  

	 	•	 	MOD- Loan Modification 

  

	 	•	 	PRE- Pre-Sale 

  

	 	•	 	SS- Short Sale 

  

	 	•	 	MISC- Anything else approved by the PMI or Pool Insurer 

  
 NOTE: 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: 
  

	 	•	 	Mortgagor 

  

	 	•	 	Tenant 

  

	 	•	 	Unknown 

  

	 	•	 	Vacant 

  
 The Property Condition field should show the last reported condition of the property as follows: 
  

	•	 	Damaged 

  

	•	 	Excellent 

  

	•	 	Fair 

  

	•	 	Gone 

  

	•	 	Good 

  

	•	 	Poor 

  

	•	 	Special Hazard 

  

	•	 	Unknown 

  

 F-3 

 PART II: 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

  

 F-4 

 PART II: 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

  

 F-5 

 PART III: Calculation of Realized Loss/Gain Form 332– Instruction Sheet 
  
 (a) The numbers on the 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. All line entries must be supported by copies of appropriate statements, vouchers, receipts, bills, canceled checks, etc., to document the expense. Entries
not properly documented will not be reimbursed to the Servicer. 

  

	13.	The total of lines 1 through 12. 

  
 (b) Credits: 
  

	14-21.	Complete as applicable. All line entries must be supported by copies of the appropriate claims forms, EOBs, HUD-1 and/or other proceeds verification, statements, payment checks,
etc. to document the credit. If the Mortgage Loan is subject to a Bankruptcy Deficiency, the difference between the Unpaid Principal Balance of the Note prior to the Bankruptcy Deficiency and the Unpaid Principal Balance as reduced by the Bankruptcy
Deficiency should be input on line 20. 

  

	22.	The total of lines 14 through 21. 

  

	Please	note: For HUD/VA loans, use line (15) for Part A/Initial proceeds and line (16) for Part B/Supplemental proceeds. 

  

 F-6 

 (c) 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 (     ). 

 

 F-7 

 PART IIIA: Calculation of Realized Loss/Gain Form 332 
  
 WELLS FARGO BANK, N.A. 
 CALCULATION OF REALIZED LOSS/GAIN 
  
 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 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
                             (5) 
  
 (6) Property Maintenance
                             (6) 
  
 (7) MI/Hazard Insurance Premiums
                             (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                                       
                                       
   
  
 HOA/Condo
Fees                                       
                                    
  
 _____________________________________ ______________

 _____________________________________ ______________ 
  
 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 Proceeds
                             (18) 
  
 (19) Pool Insurance Proceeds
                             (19) 
  
 (20) Proceeds from Sale of Acquired Property
                             (20) 
  

 F-8 

 (21) Other (itemize)
                     (21) 
  
 __________________________________ ____________ 
  

__________________________________ ____________ 
  
 Total Credits
$                     (22) 
  
 Total Realized Loss (or Amount of Gain)
$                     (23) 
  

 F-9 

 SCHEDULE A 
  

MORTGAGE LOAN SCHEDULE 
  

 Schedule A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]