Document:

DELTA FINANCIAL CORPORATION

                           9 1/2% SENIOR SECURED NOTES
                                    DUE 2004
                             (CUSIP NO. 247918 AB 1)

                             CONSENT TO AMENDMENT OF
THE INDENTURE AND THE TRUST AGREEMENTS; PLEDGE AGREEMENTS AND INTERCREDITOR
AGREEMENT; AND WRITTEN DIRECTION TO THE TRUSTEE

         This   consent   statement  is  being   executed  by  Delta   Financial
Corporation, a Delaware corporation (the "Company"),  Delta Funding Corporation,
a New York corporation  ("Delta Funding"),  DF Special Holdings  Corporation,  a
Delaware corporation ("DF Special Holdings"), Fidelity Mortgage Inc., a Delaware
corporation  ("Fidelity"),  DFC Financial  Corporation,  a Delaware  corporation
("DFC  Financial"),   DFC  Financial  of  Canada  Limited,  an  Ontario,  Canada
corporation  ("DFC  Financial of  Canada"),  DFC Funding of Canada  Limited,  an
Ontario,  Canada  corporation  ("DFC Funding of Canada"),  Continental  Property
Management Corp., a New York corporation ("Continental"), Delta Funding Residual
Holding Trust 2000-1, a Delaware trust ("2000-1 Trust"),  Delta Funding Residual
Holding Trust 2000-2,  a Delaware trust ("2000-2  Trust"),  and the holders of a
majority in principal amount (the "Beneficial  Holders") of the Company's 9 1/2%
Senior Secured Notes Due 2004 (the "Notes").

         The Beneficial Holders hereby consent to:

         (A)  the  amendments  and  supplements  (collectively,   the  "Proposed
         Amendments" and individually,  each a "Proposed  Amendment") to (i) the
         Indenture,  pursuant  to  which  the  Notes  were  issued,  dated as of
         December  21,  2000,  as amended by the First  Supplemental  Indenture,
         dated  January 11, 2001 and the Second  Supplemental  Indenture,  dated
         February 12, 2001 (collectively,  the "Indenture"),  among the Company,
         as issuer,  each of Delta Funding, DF Special Holdings,  Fidelity,  DFC
         Financial, DFC Financial of Canada, DFC Funding of Canada, Continental,
         2000-1 Trust, 2000-2 Trust, and U.S. Bank Trust National Association, a
         national banking association  incorporated under the laws of the United
         States, as trustee (the "Trustee"),  (ii) the Escrow Agreement dated as
         of December 21, 2000 (the "Escrow  Agreement") by and among the Company
         and the Trustee,  as trustee  under the  Indenture and as escrow agent,
         (iii) the Deposit  Trust  Agreement  dated as of December 22, 2000 (the
         "2000-1 Trust Agreement")  between DF Special  Holdings,  as depositor,
         and Wilmington Trust Company ("Wilmington"), as owner trustee, and (iv)
         the Deposit Trust  Agreement dated as of December 22, 2000 (the "2000-2
         Trust Agreement") between Delta Funding, as depositor,  and Wilmington,
         as owner trustee;

         (B) (i) that certain Pledge Agreement (the "DFSH Pledge  Agreement") by
         DF Special  Holdings in favor of the Trustee,  as collateral agent (the
         "Agent"), pursuant to which DF Special Holdings will grant to the Agent
         a second priority security interest in and to the Residual  Receivables
         set forth on Schedule I of EXHIBIT E hereto for the ratable  benefit of
         the  holders of the Notes;  (ii) that  certain  Pledge  Agreement  (the
         "Delta  Funding  Pledge  Agreement"  and together  with the DFSH Pledge
         Agreement,  the "Pledge  Agreements")  by Delta Funding in favor of the
         Agent  pursuant to which Delta Funding will grant to the Agent a second
         priority security interest in and to the Residual Receivables set forth
         on  Schedule  I of  EXHIBIT F hereto  for the  ratable  benefit  of the
         holders  of  the  Notes  and  (iii)  that  certain   Intercreditor  and
         Subordination  Agreement (the  "Intercreditor  Agreement") by and among
         the Trustee,  as collateral  agent (the  "Agent"),  Delta  Funding,  DF
         Special  Holdings,  Goldman  Sachs  Mortgage  Company  ("Goldman")  and
         Greenwich Capital Financial Products,  Inc. (together with Goldman, the
         "Senior  Lenders")  which sets forth the relative  rights of the Senior
         Lenders and the Agent in respect of the residual receivables subject to
         the Pledge Agreements; and

         (C) the following transactions,  executed  simultaneously,  pursuant to
         the Release Certifications attached hereto as EXHIBITS H AND I: (i) the
         release and transfer  from the 2000-1  Trust to DF Special  Holdings of
         the Residual  Receivables  set forth on Schedule 1 of EXHIBIT H hereto;
         (ii) the deposit by DF Special  Holdings  into the 2000-1  Trust of the
         Residual Receivables set forth on Schedule 2 of EXHIBIT H hereto; (iii)
         the release and transfer to Delta  Funding from the 2000-2 Trust of the
         Residual  Receivables set forth on Schedule 1 of EXHIBIT I hereto;  and
         (iv) the deposit by Delta Funding into the 2000-2 Trust of the Residual
         Receivables set forth on Schedule 2 of EXHIBIT I hereto.

         Capitalized  terms used in this  consent  statement  and not  otherwise
defined  herein  are  used  herein  as  defined  in  the  Indenture,  the  Third
Supplemental  Indenture  (as defined  below),  the 2000-1  Amendment (as defined
below),  the 2000-2 Amendment (as defined below),  the Pledge Agreements and the
Intercreditor  Agreement.  The Proposed Amendments listed below are qualified in
their  entirety  by  reference  to (i) the  supplemental  indenture  (the "Third
Supplemental  Indenture")  required to give effect to the Proposed Amendments in
respect of the Indenture and the relevant portions of the Indenture as currently
in effect,  (ii) the amendment to the Escrow  Agreement  (the  "Amendment to the
Escrow Agreement")  required to give effect to the Proposed Amendment in respect
of the Escrow Agreement and the relevant portions of the Escrow Agreement, (iii)
the amendment to the 2000-1 Trust Agreement (the "2000-1 Amendment") required to
give effect to the Proposed  Amendments in respect of the 2000-1 Trust Agreement
and the relevant  portions of the 2000-1 Trust Agreement as currently in effect,
and (iv) the amendment to the 2000-2 Trust  Agreement  (the "2000-2  Amendment")
required  to give  effect to the  Proposed  Amendments  in respect of the 2000-2
Trust  Agreement  and the  relevant  portions of the 2000-2  Trust  Agreement as
currently in effect.  The Third  Supplemental  Indenture  is attached  hereto as
EXHIBIT A, the Amendment to the Escrow  Agreement is attached  hereto as EXHIBIT
B, the 2000-1 Amendment is attached hereto as EXHIBIT C, the 2000-2 Amendment is
attached  hereto as EXHIBIT D, the DFSH Pledge  Agreement is attached  hereto as
EXHIBIT E, the Delta Funding Pledge  Agreement is attached  hereto as EXHIBIT F,
and the Intercreditor Agreement is attached hereto as EXHIBIT G.

NO  PERSON  HAS  BEEN   AUTHORIZED  TO  FURNISH  ANY  INFORMATION  OR  MAKE  ANY
REPRESENTATION IN CONNECTION WITH THIS CONSENT STATEMENT OTHER THAN AS CONTAINED
HEREIN. IF FURNISHED OR MADE, ANY SUCH INFORMATION OR REPRESENTATION MUST NOT BE
RELIED UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY.

                             THE PROPOSED AMENDMENTS

         The Proposed Amendments to the Indenture are set forth as follows:

         1.  Section  1.01 of the  Indenture  is hereby  amended  by adding  the
following definition after the definition of "Custodian":

         "'EXCHANGE  OFFER'  means an  exchange  offer to be  undertaken  by the
         Company  pursuant to which (i) the Senior Notes will be  exchanged  for
         interests in a  liquidating  trust to be formed by the  Company,  which
         liquidating trust shall hold either the Owner Trust Certificates or the
         Residual  Receivables  held in the 2000-1  Trust and the  2000-2  Trust
         immediately  prior to the consummation of such exchange offer and, (ii)
         except for other  rights and  benefits to be provided in such  exchange
         offer,  and subject to the  consummation  of the exchange offer and all
         conditions  thereunder  being satisfied  without any  contingency,  all
         remaining  or future  claims  arising  under the  Senior  Notes will be
         released and extinguished,  including the right to payment of principal
         and  accrued  interest  under  the  Senior  Notes,  all  on  terms  and
         conditions  and in form  and  content  reasonably  satisfactory  to the
         Holders that participate in such exchange offer."

         2.  Section  1.01 of the  Indenture  is hereby  amended  by adding  the
following definition after the definition of "Legal Holiday":

         "'LETTER OF INTENT' means that certain Letter of Intent attached hereto
         as Exhibit N."

         3.  Section  1.01 of the  Indenture  is hereby  amended  by adding  the
following definition after the definition of "Original Notes":

         "'OWNER TRUST  CERTIFICATES'  means,  collectively (i) the certificates
         issued under the 2000-1 Trust Agreement evidencing beneficial ownership
         interests  in the 2000-1 Trust and (ii) the  certificates  issued under
         the 2000-2 Trust Agreement evidencing  beneficial ownership interest in
         the 2000-2 Trust."

         4. The  definition of "Pledge  Agreement"  set forth in Section 1.01 of
the Indenture is hereby deleted in its entirety and replaced by the following:

         "PLEDGE  AGREEMENT"  means any of (i) those certain  Pledge  Agreements
         dated as of the date of this Indenture and  substantially  in the forms
         attached as Exhibits C and D hereto, as such agreements may be amended,
         modified  or  supplemented  from  time to time and (ii)  those  certain
         Pledge  Agreements  dated as of March 16,  2001 by Delta  Funding or DF
         Special Holdings in favor of the Trustee as Collateral Agent."

         5. Section 4.17 of the Indenture is hereby deleted in  its entirety and
replaced by the following:

         "SECTION 4.17   Maintenance of  Residual Receivables  Pending  Exchange
         Offer.

         The  Company,  Delta  Funding and DF Special  Holdings  shall cause all
         Residual Receivables owned as of March 15, 2001 by the 2000-1 Trust and
         the 2000-2 Trust to remain owned by such Trusts until the  consummation
         of the  Exchange  Offer other than (i) the  release and  transfer to DF
         Special Holdings from the 2000-1 Trust of the Residual  Receivables set
         forth on Schedule  4.17(A) and the deposit by DF Special  Holdings into
         the 2000-1  Trust of the  Residual  Receivables  set forth on  Schedule
         4.17(B)  and (ii) the release and  transfer to Delta  Funding  from the
         2000-2 Trust of the Residual  Receivables set forth on Schedule 4.17(C)
         and the deposit by Delta  Funding into the 2000-2 Trust of the Residual
         Receivables set forth on Schedule  4.17(D).  Schedule 4.17(E) lists the
         underlying  certificates  for all Residual  Receivables  required to be
         maintained on deposit with the Residual  Collateral  Trusts in order to
         satisfy the requirements of the foregoing sentence.

         After  giving  effect to (i) the  release  and  transfer  to DF Special
         Holdings from the 2000-1 Trust of the Residual Receivables set forth on
         Schedule 4.17(A) and the deposit by DF Special Holdings into the 2000-1
         Trust of the  Residual  Receivables  set forth on Schedule  4.17(B) and
         (ii) the release and transfer to Delta Funding from the 2000-2 Trust of
         the Residual  Receivables set forth on Schedule 4.17(C) and the deposit
         by Delta Funding into the 2000-2 Trust of the Residual  Receivables set
         forth on Schedule 4.17(D),  the Residual  Receivables then remaining in
         the 2000-1  Trust and the  2000-2  Trust are and were free and clear of
         liens and had an aggregate  unaudited book value of approximately  $152
         million as of December 31, 2000; included in such Residual  Receivables
         are Senior Residual  Receivables which had an aggregate  unaudited book
         value of approximately $75 million as of December 31, 2000.

         For the purposes of this Section  4.17,  the Company  valued (i) Senior
         Residual  Receivables  using a discount  rate of 12% and (ii) all other
         Residual   Receivables   using  a  discount  rate  of  18%.  The  other
         assumptions  and  methodology  used by the  Company in  valuing  Senior
         Residual  Receivables and other Residual  Receivables  were those which
         are used by the Company in  establishing  the book value of such Senior
         Residual  Receivables  and other  Residual  Receivables  in its  annual
         audited  consolidated  financial statements prepared in accordance with
         GAAP consistently applied.

         The foregoing is collectively referred to  as  the  Residual Receivable
         Maintenance Requirement."

         6.  Section 4.24 of the Indenture is hereby deleted in its entirety and
replaced by the following:

         "SECTION 4.24.    DELETED."

         7.  Paragraph (a) of Section 4.27 of the  Indenture  is hereby  deleted
in its entirety and replaced by the following:

         "(a)  DELETED."

         8.  Section 6.01 of the Indenture is hereby amended by adding the
following at the end thereof:

         "(l)   the Company or any of its affiliates  fails in a material way to
         perform any of the undertakings set forth in the Letter of Intent on or
         before July 31, 2001;

         (m)    the Company fails to conclude  the Exchange  Offer described  in
         the Letter of Intent on or before July 31, 2001; or

         (n)    Delta Funding fails to conclude the transfer of actual servicing
         for the entirety of the mortgage loans underlying Residual  Receivables
         listed on Schedule 4.17(E) to Ocwen Federal Bank, FSB on or before July
         31, 2001."

         The Proposed Amendment to the Escrow Agreement is set forth as follows:

         1. The second  sentence of Section 3 of the  Escrow Agreement is hereby
         deleted in its entirety.

         The Proposed  Amendments to the 2000-1 Trust Agreement are set forth as
         follows:

         1. The  definition of  "Collateral  Test" set forth in Article 1 of the
2000-1  Trust  Agreement  is hereby  deleted in its entirety and replaced by the
following:

         "'Collateral  Test'  shall  mean  compliance  by the  Company  with the
         Residual Receivable Maintenance  Requirements set forth in Section 4.17
         of the Indenture."

         2. The definition of "Release  Certification" set forth in Article 1 of
the 2000-1 Trust Agreement is hereby deleted in its entirety and replaced by the
following:

         "'Release  Certification' shall mean the certification by the Depositor
         in  connection  with the  release  of  amounts  in the Cash  Collateral
         Account  pursuant  to  Section  3.3 in the form  attached  as Exhibit E
         hereto."

         3. The definition of "Released  Certificates" set forth in Article 1 of
the 2000-1 Trust Agreement is hereby deleted in its entirety.

         4. The definition of "Underlying  Agreements" set forth in Article 1 of
the 2000-1 Trust Agreement is hereby deleted in its entirety and replaced by the
following:

         "'Underlying Agreements' shall mean as of any date of determination any
         or all of the pooling and servicing  agreements and/or trust agreements
         pursuant to which the Underlying Certificates were issued."

         5. Paragraph (b) of Section 3.3 of the 2000-1 Trust Agreement is hereby
deleted in its entirety and replaced by the following:

                  (b) Upon  satisfaction of the conditions to a release from the
                  Cash   Collateral   Account  as  set  forth  in  the   Release
                  Certification,  and  subject  to  the  provisions  of  Section
                  4.2(d),  the  Depositor  may from time to time  deliver to the
                  Owner Trustee,  with a copy to the Collateral Agent, a Release
                  Certification  and,  upon receipt  thereof,  the Owner Trustee
                  shall authorize the Depositor to withdraw the amount specified
                  therein  from  the  Cash  Collateral  Account  and to pay such
                  amount to or to the order of the Depositor. Upon such payment,
                  such  amount  shall no  longer  be part of the  Trust  Estate.
                  Notwithstanding   the   generality   of  the   foregoing,   no
                  withdrawals of cash or other property from the Cash Collateral
                  Account by the  Depositor  shall be  permitted  after June 30,
                  2001.

         6.       Section 4.1 of the 2000-1 Trust Agreement is hereby deleted in
its entirety and replaced by the following:

         "Section 4.1      DELETED."

         7.       Paragraph  (a) of Section 4.2 of the 2000-1 Trust Agreement is
hereby  deleted in its entirety and replaced by the following:

                  (a) On each Underlying  Distribution Date on which amounts are
                  distributed to the Trust, the Owner Trustee shall deposit such
                  amounts into the  Certificate  Account.  On each Payment Date,
                  the Owner  Trustee (or its Agent other than the  Depositor  or
                  any Affiliate) shall withdraw from the Certificate Account all
                  Certificateholder Funds then on deposit therein, and the Owner
                  Trustee  (or its Agent)  shall,  subject  to  Section  4.2(d),
                  either   (i)  pay   such   Certificateholder   Funds   to  the
                  Certificateholders  if, as shown on the most recent Compliance
                  Certification  or Release  Certification,  the Collateral Test
                  was  satisfied or (ii)  otherwise  transfer  such funds to the
                  Cash Collateral Account. Notwithstanding the generality of the
                  foregoing,  no  payments  of  Certificateholder  Funds  to the
                  Certificateholders shall be permitted after June 30, 2001, and
                  thereafter  all  Certificateholder  Funds shall  remain in the
                  Certificateholder Account."

         8.       Exhibit D of the 2000-1 Trust Agreement is  hereby  deleted in
its entirety and replaced by EXHIBIT 1 hereto.

         9.       Exhibit E of the 2000-1 Trust  Agreement is hereby  deleted in
its entirety and replaced by EXHIBIT 2 hereto.

         The Proposed  Amendments to the 2000-2 Trust Agreement are set forth as
follows:

         1. The  definition of  "Collateral  Test" set forth in Article 1 of the
2000-2  Trust  Agreement  is hereby  deleted in its entirety and replaced by the
following:

         "'Collateral  Test'  shall  mean  compliance  by the  Company  with the
         Residual Receivable Maintenance  Requirements set forth in Section 4.17
         of the Indenture."

         2. The definition of "Release  Certification" set forth in Article 1 of
the 2000-2 Trust Agreement is hereby deleted in its entirety and replaced by the
following:

         "'Release  Certification' shall mean the certification by the Depositor
         in  connection  with the  release  of  amounts  in the Cash  Collateral
         Account  pursuant  to  Section  3.3 in the form  attached  as Exhibit E
         hereto."

         3. The definition of "Released  Certificates" set forth in Article 1 of
the 2000-2 Trust Agreement is hereby deleted in its entirety.

         4. The definition of "Underlying  Agreements" set forth in Article 1 of
the 2000-2 Trust Agreement is hereby deleted in its entirety and replaced by the
following:

         "'Underlying Agreements' shall mean as of any date of determination any
         or all of the pooling and servicing  agreements and/or trust agreements
         pursuant to which the Underlying Certificates were issued."

         5. Paragraph  (b) of Section  3.3  of  the 2000-2  Trust  Agreement  is
hereby  deleted in its entirety and replaced by the following:

                  (b) Upon  satisfaction of the conditions to a release from the
                  Cash   Collateral   Account  as  set  forth  in  the   Release
                  Certification,  and  subject  to  the  provisions  of  Section
                  4.2(d),  the  Depositor  may from time to time  deliver to the
                  Owner Trustee,  with a copy to the Collateral Agent, a Release
                  Certification  and,  upon receipt  thereof,  the Owner Trustee
                  shall authorize the Depositor to withdraw the amount specified
                  therein  from  the  Cash  Collateral  Account  and to pay such
                  amount to or to the order of the Depositor. Upon such payment,
                  such  amount  shall no  longer  be part of the  Trust  Estate.
                  Notwithstanding   the   generality   of  the   foregoing,   no
                  withdrawals of cash or other property from the Cash Collateral
                  Account by the  Depositor  shall be  permitted  after June 30,
                  2001."

         6. Section 4.1 of the 2000-2 Trust  Agreement is hereby  deleted in its
entirety and replaced by the following:

         "Section 4.1  DELETED."

         7. Paragraph (a) of Section 4.2 of the 2000-2 Trust Agreement is hereby
deleted in its entirety and replaced by the following:

                  (a) On each Underlying  Distribution Date on which amounts are
                  distributed to the Trust, the Owner Trustee shall deposit such
                  amounts into the  Certificate  Account.  On each Payment Date,
                  the Owner  Trustee (or its Agent other than the  Depositor  or
                  any Affiliate) shall withdraw from the Certificate Account all
                  Certificateholder Funds then on deposit therein, and the Owner
                  Trustee  (or its Agent)  shall,  subject  to  Section  4.2(d),
                  either   (i)  pay   such   Certificateholder   Funds   to  the
                  Certificateholders  if, as shown on the most recent Compliance
                  Certification  or Release  Certification,  the Collateral Test
                  was  satisfied or (ii)  otherwise  transfer  such funds to the
                  Cash Collateral Account. Notwithstanding the generality of the
                  foregoing,  no  payments  of  Certificateholder  Funds  to the
                  Certificateholders shall be permitted after June 30, 2001, and
                  thereafter  all  Certificateholder  Funds shall  remain in the
                  Certificateholder Account."

         8.  Exhibit D of the 2000-2 Trust  Agreement  is hereby  deleted in its
entirety and replaced by Exhibit 3 hereto.

         9.  Exhibit E of the 2000-2 Trust  Agreement  is hereby  deleted in its
entirety and replaced by Exhibit 4 hereto.

         The  Third  Supplemental   Indenture,   the  Amendment  to  the  Escrow
Agreement, the 2000-1 Amendment, the 2000-2 Amendment, the Pledge Agreements and
the  Intercreditor  Agreement  shall become  effective  upon the  execution  and
delivery of this consent by the Beneficial Holders and the Company, upon the due
execution  of the Third  Supplemental  Indenture,  the  Amendment  to the Escrow
Agreement, the 2000-1 Amendment, the 2000-2 Amendment, the Pledge Agreements and
the Intercreditor Agreement by each of the parties listed as signatories thereto
and compliance and satisfaction with the following conditions to effectiveness:

         1. The execution  and  delivery  of  the  Pledge  Agreements   to   the
Collateral Agent.

         2. The execution by DF Special  Holdings of UCC-1 Financing  Statements
in the form  attached  hereto as EXHIBIT J1 and the filing  thereof with the New
York Secretary of State, County Clerk's office,  Nassau County, New York, County
Clerk's  office,  New York County,  New York,  and Delaware  Secretary of State,
which  Financing  Statements  list  all  Underlying  Certificates  for  Residual
Receivables subject to the DFSH Pledge Agreement.

         3. The execution by DF Special  Holdings of UCC-1 Financing  Statements
in the form  attached  hereto as EXHIBIT J2 and the filing  thereof with the New
York Secretary of State, County Clerk's office,  Nassau County, New York, County
Clerk's  office,  New York County,  New York,  and Delaware  Secretary of State,
which  Financing  Statements  list  all  Underlying  Certificates  set  forth on
Schedule 2 of EXHIBIT H being deposited into the 2000-1 Trust.

         4. The execution by Delta Funding of UCC-1 Financing  Statements in the
form  attached  hereto as EXHIBIT K1 and the  filing  thereof  with the New York
Secretary of State,  County  Clerk's  office,  Nassau County,  New York,  County
Clerk's  office,  New York County,  New York,  and Delaware  Secretary of State,
which  Financing  Statements  list  all  Underlying  Certificates  for  Residual
Receivables subject to the Delta Funding Pledge Agreement.

         5. The execution by Delta Funding of UCC-1 Financing  Statements in the
form  attached  hereto as EXHIBIT K2 and the  filing  thereof  with the New York
Secretary of State,  County  Clerk's  office,  Nassau County,  New York,  County
Clerk's  office,  New York County,  New York,  and Delaware  Secretary of State,
which  Financing  Statements  list  all  Underlying  Certificates  set  forth on
Schedule 2 of EXHIBIT I being deposited into the 2000-2 Trust.

         6.  Execution  and  delivery  by  Stroock  & Stroock & Lavan LLP of the
opinion  addressed  to the  Collateral  Agent and the  members  of the  Informal
Committee attached hereto as EXHIBIT L.

             CONSENT TO RELEASE AND TRANSFER OF RESIDUAL RECEIVABLES

         By signing the consent each  Beneficial  Holder hereby  consents to (i)
the release and  transfer to DF Special  Holdings  from the 2000-1  Trust of the
Residual  Receivables  set forth on  Schedule  1 of  EXHIBIT H hereto;  (ii) the
deposit by DF Special Holdings into the 2000-1 Trust of the Residual Receivables
set forth on Schedule 2 of EXHIBIT H hereto;  (iii) the release and  transfer to
Delta  Funding from the 2000-2 Trust of the  Residual  Receivables  set forth on
Schedule 1 of EXHIBIT I hereto;  and (iv) the deposit by Delta  Funding into the
2000-2  Trust of the Residual  Receivables  set forth on Schedule 2 of EXHIBIT I
hereto.

         By signing the consent each  Beneficial  Holder hereby  consents to the
use by (i) DF Special Holdings of the Release  Certification  attached hereto as
EXHIBIT  H in lieu  of the  Compliance  Certificate  and  Release  Certification
attached to the 2000-1 Trust  Agreement as  originally  delivered and (ii) Delta
Funding of the Release Certification attached hereto as EXHIBIT I in lieu of the
Compliance  Certificate and Release  Certification  attached to the 2000-2 Trust
Agreement as originally delivered,  in each instance to effectuate the transfers
described in the immediately preceding paragraph.

         The Company hereby represents to the Beneficial  Holders executing this
consent  that,  after  giving  effect to (i) the release and  transfer  from the
2000-1  Trust of the Residual  Receivables  set forth on Schedule 1 of EXHIBIT H
hereto;  (ii) the deposit into the 2000-1 Trust of the Residual  Receivables set
forth on Schedule 2 of EXHIBIT H hereto; (iii) the release and transfer from the
2000-2  Trust of the Residual  Receivables  set forth on Schedule 1 of EXHIBIT I
hereto;  and (iv) the deposit into the 2000-2 Trust of the Residual  Receivables
set forth on  Schedule  2 of EXHIBIT I hereto,  the  Residual  Receivables  then
remaining  in the 2000-1 Trust and the 2000-2 Trust were free and clear of liens
and had an aggregate  unaudited book value of  approximately  $152 million as of
December  31, 2000 and that  included in such  Residual  Receivables  are Senior
Residual   Receivables   which  had  an  aggregate   unaudited   book  value  of
approximately  $75 million as of December 31, 2000. In calculating the aggregate
book values of Residual Receivables and Senior Residual Receivables, the Company
used the discount rates and valuation methodology  prescribed in Section 4.17 of
the Indenture.
<PAGE>

                           REPRESENTATION OF OWNERSHIP

         Each of the undersigned Beneficial Holders represents and warrants that
it owns the aggregate  principal  amount of Notes set forth below and,  together
with the  Company,  agrees to  indemnify  the Trustee with respect to any claims
arising out of this consent in the event that such  Beneficial  Holder owns less
than such amount.

<PAGE>

                             ACCEPTANCE OF CONSENTS

         Upon  satisfaction  of the  conditions  to  effectiveness  of the Third
Supplemental  Indenture  set  forth in the  Indenture,  the  Third  Supplemental
Indenture will become effective and will be binding on all holders of the Notes.
All of the  provisions of the Indenture that are not amended will remain in full
force and effect.

         This consent shall  constitute a valid consent pursuant to Section 9.02
of the Indenture and shall constitute written direction pursuant to said Section
9.02 to the Trustee by the Beneficial  Holders to execute the Third Supplemental
Indenture.

         Upon  satisfaction  of the  conditions to  effectiveness  of the 2000-1
Amendment and the 2000-2 Amendment  (collectively,  the "Trust  Amendments") set
forth  in  the  2000-1  Trust   Agreement   and  the  2000-2   Trust   Agreement
(collectively, the "Trust Agreements"),  respectively, the Trust Amendments will
become  effective and will be binding on all parties  thereto and all holders of
the Notes.  All of the provisions of the Trust  Agreements  that are not amended
will remain in full force and effect.

         This  consent  shall  (i)  constitute  a  valid  consent  to the  Trust
Amendments and (ii) constitute written direction pursuant to Section 9.02 of the
Indenture to the Collateral  Agent by the  Beneficial  Holders to consent to the
Trust Amendments.

         This consent  shall (i)  constitute a valid consent to the Amendment to
the Escrow Agreement and (ii) constitute  written direction  pursuant to Section
9.02 of the  Indenture  to the  Collateral  Agent by the  Beneficial  Holders to
execute the  Amendment to the Escrow  Agreement in its capacity as trustee under
the Indenture and escrow agent.

         This consent  shall (i)  constitute a valid  consent to the DFSH Pledge
Agreement and the Delta Funding  Pledge  Agreement and (ii)  constitute  written
direction  pursuant to Section 9.02 of the Indenture to the Collateral  Agent by
the  Beneficial  Holders  to execute  the DFSH  Pledge  Agreement  and the Delta
Funding Pledge Agreement.

         By executing this consent,  the undersigned  Beneficial  Holders hereby
waive any Defaults and/or Events of Default that may arise as a result of filing
UCC-1  Financing  Statements  included  in  Exhibit  J1 or  Exhibit K1 hereto in
respect of the Residual  Receivables  covered by the Pledge  Agreements prior to
the release of such  Residual  Receivables  from the 2000-1 Trust and the 2000-2
Trust.

         This consent shall (i) constitute a valid consent to the  Intercreditor
Agreement and (ii) constitute  written direction pursuant to Section 9.02 of the
Indenture to the Collateral  Agent by the  Beneficial  Holders to consent to the
Intercreditor Agreement.

                              DELIVERY OF CONSENTS

         If you approve of the  Proposed  Amendments,  please sign the  attached
consent and fax it to the Company's counsel, as follows:

                          Stroock & Stroock & Lavan LLP
                                 180 Maiden Lane
                            New York, New York 10038
                            Attn: Paul T. Darcy, Esq.
                            Telephone: (212) 806-6462
                               Fax: (212) 806-6006

                         With a copy to the Company at:

                           Delta Financial Corporation
                               1000 Woodbury Road
                            Woodbury, New York 11797
                              Attn: Marc E. Miller
                            Telephone: (516) 812-8850
                               Fax: (516) 364-9450

         Originals  should  then be  mailed,  sent by  personal  delivery  or by
overnight courier as follows:

                          Stroock & Stroock & Lavan LLP
                                 180 Maiden Lane

                            New York, New York 10038
                            Attn: Paul T. Darcy, Esq.
                            Telephone: (212) 806-6462

                               Fax: (212) 806-6006

                         QUESTIONS; FURTHER INFORMATION

         Should you have any questions or would like further  information  about
this consent or the Proposed Amendments,  please contact your own counsel or the
following attorneys at Stroock & Stroock & Lavan LLP, as follows:

                  Anna T. Pinedo                        (212) 806-5570
                  Paul T. Darcy                         (212) 806-6462
<PAGE>

         The Company and the other  companies  that have  executed  this consent
statement sincerely appreciate your prompt attention to this matter.

                                    Very truly yours,

                                    DELTA FINANCIAL CORPORATION

                                    By: /S/ MARC E. MILLER
                                    --------------------------------
                                      Name: Marc E. Miller
                                      Title: Senior Vice President

                                    DELTA FUNDING CORPORATION

                                    By: /S/ MARC E. MILLER
                                    --------------------------------
                                      Name: Marc E. Miller
                                      Title: Senior Vice President

                                    DF SPECIAL HOLDINGS CORPORATION

                                    By: /S/ MARC E. MILLER
                                    --------------------------------
                                      Name: Marc E. Miller
                                      Title: Vice President

                                    FIDELITY MORTGAGE INC.

                                    By: /S/ MARC E. MILLER
                                    --------------------------------
                                      Name: Marc E. Miller
                                      Title: Vice President

                                    DFC FINANCIAL CORPORATION

                                    By: /S/ MARC E. MILLER
                                    --------------------------------
                                      Name: Marc E. Miller
                                      Title: Vice President

                                    DFC FINANCIAL OF CANADA LIMITED

                                    By: /S/ MARC E. MILLER
                                    --------------------------------
                                      Name: Marc E. Miller
                                      Title: Vice President

                                    DFC FUNDING OF CANADA LIMITED

                                    By: /S/ MARC E. MILLER
                                    --------------------------------
                                      Name: Marc E. Miller
                                      Title: Vice President

                                    CONTINENTAL PROPERTY MANAGEMENT CORP.

                                    By: /S/ MARC E. MILLER
                                    --------------------------------
                                      Name: Marc E. Miller
                                      Title: Vice President

                                    DELTA FUNDING RESIDUAL HOLDING TRUST 2000-1

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

                                    By: /S/ CHARISSE L. RODGERS
                                    --------------------------------
                                      Name: Charisse L. Rodgers
                                      Title: Assistant Vice President

                                    DELTA FUNDING RESIDUAL HOLDING TRUST 2000-2

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

                                    By: /S/ CHARISSE L. RODGERS
                                    --------------------------------
                                      Name: Charisse L. Rodgers
                                      Title: Assistant Vice President

<PAGE>
                                     CONSENT

         The  undersigned  Beneficial  Holder of the principal  amount set forth
below of 9 1/2% Senior  Secured Notes due 2004 (the "Notes") of Delta  Financial
Corporation, a Delaware corporation (the "Company"), does hereby consent to:

         (A) the proposed  amendments  (the  "Proposed  Amendments")  to (i) the
         Indenture,  pursuant  to  which  the  Notes  were  issued,  dated as of
         December  21,  2000,  as amended by the First  Supplemental  Indenture,
         dated  January 11, 2001 and the Second  Supplemental  Indenture,  dated
         February 12, 2001 (collectively, the "Indenture") among the Company, as
         issuer,  each of Delta  Funding  Corporation,  a New  York  corporation
         ("Delta  Funding"),   DF  Special  Holdings  Corporation,   a  Delaware
         corporation ("DF Special Holdings"), Fidelity Mortgage Inc., a Delaware
         corporation,  DFC Financial  Corporation,  a Delaware corporation,  DFC
         Financial  of Canada  Limited,  an  Ontario,  Canada  corporation,  DFC
         Funding of Canada Limited, an Ontario, Canada corporation,  Continental
         Property  Management  Corp.,  a New  York  corporation,  Delta  Funding
         Residual Holding Trust 2000-1, a Delaware trust, Delta Funding Residual
         Holding Trust 2000-2,  a Delaware  trust,  and U.S. Bank Trust National
         Association, a national banking association incorporated under the laws
         of the United States,  as trustee (the  "Trustee"),  as described above
         and as set  forth  in  the  proposed  form  of  supplemental  indenture
         attached thereto (the "Third Supplemental Indenture"),  (ii) the Escrow
         Agreement dated as of December 21, 2000 (the "Escrow Agreement") by and
         among the Company and the Trustee,  as trustee  under the Indenture and
         as escrow  agent,  as described  above and as set forth in the proposed
         form of amendment  to the Escrow  Agreement  (the "Escrow  Amendment"),
         (iii) the Deposit  Trust  Agreement  dated as of December 22, 2000 (the
         "2000-1 Trust Agreement")  between DF Special  Holdings,  as depositor,
         and Wilmington Trust Company,  as owner trustee, as described above and
         as set forth in the  proposed  form of  amendment  to the 2000-1  Trust
         Agreement  attached  thereto  (the  "2000-1  Amendment")  and  (iv) the
         Deposit  Trust  Agreement  dated as of December  22, 2000 (the  "2000-2
         Trust Agreement") between Delta Funding,  as depositor,  and Wilmington
         Trust Company, as owner trustee, as described above and as set forth in
         the proposed form of amendment to the 2000-2 Trust  Agreement  attached
         thereto (the "2000-2 Amendment");

         (B) (i) that certain Pledge Agreement (the "DFSH Pledge  Agreement") by
         and between DF Special Holdings in favor of the Trustee,  as collateral
         agent  (the  "Agent"),  as  described  above  and as set  forth  in the
         proposed  form of DFSH Pledge  Agreement  attached  thereto;  (ii) that
         certain Pledge  Agreement (the "Delta  Funding Pledge  Agreement",  and
         together with the DFSH Pledge Agreement the "Pledge Agreements") by and
         between Delta Funding in favor of the Agent,  as described above and as
         set  forth in the  proposed  form of  Delta  Funding  Pledge  Agreement
         attached thereto and (iii) that certain Intercreditor  Agreement by and
         among the Agent,  Delta  Funding,  DF Special  Holdings,  Goldman Sachs
         Mortgage Company  ("Goldman") and Greenwich Capital Financial Products,
         Inc. (together with Goldman, the "Senior Lenders"),  as described above
         and as set  forth  in the  proposed  form  of  Intercreditor  Agreement
         attached thereto; and

         (C) the following transactions,  executed  simultaneously,  pursuant to
         the Release Certifications,  as described above and attached thereto as
         EXHIBITS H AND I: (i) the release and  transfer to DF Special  Holdings
         from the 2000-1 Trust of the Residual Receivables set forth on Schedule
         1 of EXHIBIT H hereto; (ii) the deposit by DF Special Holdings into the
         2000-1  Trust of the  Residual  Receivables  set forth on Schedule 2 of
         EXHIBIT H hereto;  (iii) the release and transfer to Delta Funding from
         the 2000-2 Trust of the Residual Receivables set forth on Schedule 1 of
         EXHIBIT I hereto; and (iv) the deposit by Delta Funding into the 2000-2
         Trust of the Residual  Receivables set forth on Schedule 2 of EXHIBIT I
         hereto.

         Capitalized terms not defined herein have the meanings given to them in
the  consent  statement.   The  terms  of  the  consent  statement,   the  Third
Supplemental Indenture, the Amendment to the Escrow Agreement, 2000-1 Amendment,
the 2000-2 Amendment,  the Pledge Agreements and the Intercreditor Agreement are
incorporated by reference in this consent.

         This consent shall  constitute a valid consent pursuant to Section 9.02
of the Indenture and shall constitute written direction pursuant to said Section
9.02 to the Trustee by the Beneficial  Holders to execute the Third Supplemental
Indenture.

         This consent  shall (i)  constitute a valid consent to the Amendment to
the Escrow Agreement and (ii) constitute  written direction  pursuant to Section
9.02 of the  Indenture  to the  Collateral  Agent by the  Beneficial  Holders to
execute the  Amendment to the Escrow  Agreement in its capacity as trustee under
the Indenture and escrow agent.

         This  consent  shall  (i)  constitute  a valid  consent  to the  2000-1
Amendment and 2000-2 Amendment and (ii) constitute written direction pursuant to
Section 9.02 of the Indenture to the Collateral Agent by the Beneficial  Holders
to consent to the 2000-1 Amendment and the 2000-2 Amendment.

         This consent  shall (i)  constitute a valid  consent to the DFSH Pledge
Agreement and the Delta Funding  Pledge  Agreement and (ii)  constitute  written
direction  pursuant to Section 9.02 of the Indenture to the Collateral  Agent by
the  Beneficial  Holders  to execute  the DFSH  Pledge  Agreement  and the Delta
Funding Pledge Agreement.

         This consent shall (i) constitute a valid consent to the  Intercreditor
Agreement and (ii) constitute  written  direction to the Collateral Agent by the
Beneficial Holders to consent to the Intercreditor Agreement.

         This consent  shall  constitute a valid  consent to (i) the release and
transfer from the 2000-1 Trust of the Residual Receivables set forth on Schedule
1 of EXHIBIT H to the consent statement;  (ii) the deposit into the 2000-1 Trust
of the Residual  Receivables set forth on Schedule 2 of EXHIBIT H to the consent
statement;  (iii) the release and transfer from the 2000-2 Trust of the Residual
Receivables set forth on Schedule 1 of EXHIBIT I to the consent  statement;  and
(iv) the deposit into the 2000-2 Trust of the Residual  Receivables set forth on
Schedule 2 of EXHIBIT I to the consent statement.

         By executing this consent,  the undersigned  Beneficial  Holders hereby
waive any Defaults and/or Events of Default that may arise as a result of filing
UCC-1 Financing Statements included in EXHIBIT J1 OR K1 of the consent statement
in respect of the Residual Receivables covered by the Pledge Agreements prior to
the release of such  Residual  Receivables  from the 2000-1 Trust and the 2000-2
Trust.

         The undersigned  represents and warrants to the Company and the Trustee
that it has full power and  authority  to execute this consent and is, as of the
date hereof,  the Beneficial  Holder of the principal  amount of Notes set forth
below,  and,  together  with the Company,  agrees to indemnify  the Trustee with
respect  to any  claims  arising  out of this  consent  in the  event  that such
Beneficial Holder owns less than such amount.

                         IMPORTANT NOTE - READ CAREFULLY

                  AUTHORITY TO ACT. Each  Beneficial  Holder should execute this
consent.  If  signature  is  by a  trustee,  partner,  executor,  administrator,
guardian, attorney-in-fact, officer of a corporation or other person acting in a
fiduciary  or  representative  capacity,  such person  should so  indicate  when
signing  and,  unless  waived  by  the  Company,  must  submit  proper  evidence
satisfactory  to the  Company  of such  person's  authority  so to act.  If this
consent is executed by a person other than a holder or  otherwise  pursuant to a
proxy,  it must be  accompanied  by the duly  executed  proxy  from  the  holder
authorizing such person to execute and deliver this consent.

         Consents  executed  by the  Beneficial  Holder  should  be faxed to the
following person:

                          Stroock & Stroock & Lavan LLP
                                 180 Maiden Lane
                            New York, New York 10038
                            Attn: Paul T. Darcy, Esq.
                            Telephone: (212) 806-6462
                               Fax: (212) 806-6006

                                 With a copy to:

                           Delta Financial Corporation
                                1000 Woodbury Road
                            Woodbury, New York 11797
                              Attn: Marc E. Miller
                            Telephone: (516) 812-8850
                               Fax: (516) 364-9450

         Originals  should  then be  mailed,  sent by  personal  delivery  or by
overnight courier as follows:

                          Stroock & Stroock & Lavan LLP
                                 180 Maiden Lane
                            New York, New York 10038
                            Attn: Paul T. Darcy, Esq.
                            Telephone: (212) 806-6462
                               Fax: (212) 806-6006

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

BY SIGNING BELOW,  THE  UNDERSIGNED  BENEFICIAL  HOLDER CONSENTS TO THE PROPOSED
AMENDMENTS.

Name(s) of beneficial holder (Please Print):....................................

 ................................................................................

Dated:..........................................................................

SIGNATURE OF BENEFICIAL HOLDER:.................................................

 ................................................................................

Capacity (full title):..........................................................

Address (including zip code):...................................................

 ................................................................................

Telephone Number (including area code):.........................................

Tax Identification or Social Security No.:......................................

AGGREGATE PRINCIPAL AMOUNT OF NOTES BENEFICIALLY HELD:..........................

<PAGE>
Dated:                      PUTNAM INVESTMENT MANAGEMENT INC., on
                                behalf of:

    $    8,890,000          Putnam High Yield Trust
         7,245,000          Putnam High Yield Advantage Fund
            80,000          Putnam High Income Convertible and Bond Fund
         3,020,000          Putnam Variable Trust-Putnam VT High Yield Fund
           760,000          Putnam Master Income Trust
         1,885,000          Putnam Premier Income Trust
         1,380,000          Putnam Master Intermediate Income Trust
         6,905,000          Putnam Diversified Income Trust
            70,000          Putnam Convertible Opportunities and Income Trust
         6,385,000          Putnam Funds Trust - Putnam High Yield Trust II
           310,000          Putnam Managed High Yield Trust
           320,000          Putnam Strategic Income Fund
         1,170,000          Putnam Variable Trust - Putnam VT Diversified Income
                                    Fund

                            By:/S/ JOHN VERANI
                            ----------------------------
                            Name:  John Verani
                            Its:   Senior Vice President

                            One Post Office Square
                            Boston, MA 02109
                            Telephone: (617)292-1000
                            Telecopy:  (617)760-1676

<PAGE>

Dated:                     PUTNAM ADVISORY COMPANY, INC., on behalf of:

           200,000         Ameritech Pension Trust

                           By:/S/ JOHN VERANI
                           ----------------------------
                           Name:  John Verani
                           Its:   Senior Vice President

                           One Post Office Square
                           Boston, MA 02109
                           Telephone: (617)292-1000
                           Telecopy:  (617)760-1676

Dated:                     PUTNAM FIDUCIARY TRUST COMPANY, on behalf of:

    $    1,305,000         Putnam High Yield Managed Trust
           295,000         Putnam High Yield Fixed Income Fund, LLC

                           By:/S/ JOHN VERANI
                           ----------------------------
                           Name:  John Verani
                           Its:   Senior Vice President

                           One Post Office Square
                           Boston, MA 02109
                           Telephone: (617)292-1000
                           Telecopy:  (617)760-1676

<PAGE>

Dated:                     PUTNAM ADVISORY COMPANY, INC., on behalf of:

         3,000,000         Putnam CBO I, Limited
         1,270,000         Putnam CBO II, Limited
         3,000,000         Putnam CBO III, Limited

                           By:/S/ JOHN VERANI
                           ----------------------------
                           Name:  John Verani
                           Its:   Senior Vice President

                           One Post Office Square
                           Boston, MA 02109
                           Telephone: (617)292-1000
                           Telecopy:  (617)760-1676

<PAGE>

Dated:                     PUTNAM INVESTMENT MANAGEMENT, INC., on
                           behalf of:

           190,000         Travelers Series Fund Inc. - Putnam Diversified
                           Income Portfolio

                           By:/S/ JOHN VERANI
                           ----------------------------
                           Name:  John Verani
                           Its:   Senior Vice President

                           One Post Office Square
                           Boston, MA 02109
                           Telephone: (617)292-1000
                           Telecopy:  (617)760-1676

<PAGE>

Dated:                     PUTNAM INVESTMENT MANAGEMENT, INC., on
                           behalf of:

            75,000         Lincoln National Global Asset Allocation fund, Inc.

                           By:/S/ JOHN VERANI
                           ----------------------------
                           Name:  John Verani
                           Its:   Senior Vice President

                           One Post Office Square
                           Boston, MA 02109
                           Telephone: (617)292-1000
                           Telecopy:  (617)760-1676

<PAGE>

Dated:                     PUTNAM ADVISORY COMPANY, INC., on behalf of:

           300,000         Northrop Grumman Corporation
           190,000         Putnam World Trust II-Putnam High Yield Bond Fund
                           (Dublin)

                           By:/S/ JOHN VERANI
                           ----------------------------
                           Name:  John Verani
                           Its:   Senior Vice President

                           One Post Office Square
                           Boston, MA 02109
                           Telephone: (617)292-1000
                           Telecopy:  (617)760-1676

<PAGE>

Dated:                     PUTNAM ADVISORY COMPANY, INC., on behalf of:

           200,000         Abbott Laboratories Annuity Retirement Plan
           180,000         Strategic Global Fund-High Yield Fixed Income
                           (Putnam) Fund

                           By:/S/ JOHN VERANI
                           ----------------------------
                           Name:  John Verani
                           Its:   Senior Vice President

                           One Post Office Square
                           Boston, MA 02109
                           Telephone: (617)292-1000
                           Telecopy:  (617)760-1676

<PAGE>

Dated:                     PUTNAM INVESTMENT MANAGEMENT, INC., on
                           behalf of:
           131,000         Putnam Variable Trust-Putnam VT Global Asset
                           Allocation Fund
           767,000         Putnam Asset Allocation Funds - Growth Portfolio
           192,000         Putnam Asset Allocation Funds - Conservative
                           Portfolio

                           By:/S/ JOHN VERANI
                           ----------------------------
                           Name:  John Verani
                           Its:   Senior Vice President

                           One Post Office Square
                           Boston, MA 02109
                           Telephone: (617)292-1000
                           Telecopy:  (617)760-1676

<PAGE>

Dated:                     PRUDENTIAL INVESTMENT CORPORATION, as
                           Investment Advisor for:

    $    7,320,000         Prudential High Yield Fund, Inc.
           435,000         Prumerica WorldWide Investors Portfolio:  U.S. High
                           Yield Fund
           160,000         The High Yield Income Fund, Inc.
           560,000         The U.S. High Yield Fund, SICAV
         1,075,000         The Prudential Series Fund, Inc., High Yield Bond
                           Portfolio

                           By: /S/ GEORGE EDWARDS
                           ----------------------------
                           Name:   George Edwards
                           Its:    Vice President

                           Two Gateway Center
                           Newark, NJ  07102
                           Telephone: (973) 802-8877
                           Telecopy: (973) 367-8555

<PAGE>

FIDELITY SUMMER STREET TRUST:
Fidelity Capital & Income Fund

By:/S/ DAVID GLANCY                      $13,527,000
   ----------------------------
   Name: David Glancy
   Title: Vice President

VARIABLE INSURANCE PRODUCTS FUND:
High Income Portfolio

By:/S/ BARRY COFFMAN                     $1,350,000
   ----------------------------
   Name: Barry Coffman
   Title: Vice President

FIDELITY ADVISOR SERIES II:
Fidelity Advisor High Income Fund

By:/S/ DAVID GLANCY                        $255,000
   ----------------------------
   Name: David Glancy
   Title: Vice President

CYPRESS TREE INVESTMENT PARTNERS I, LTD.

By:/S/ BARRY COFFMAN                     $2,000,000
   ----------------------------
   Name: Barry Coffman
   Title: Vice PresidentAMENDMENT TO DEPOSIT TRUST AGREEMENT

         THIS AMENDMENT,  dated as of March 16, 2001 (this  "Amendment") is made
by DF Special Holdings  Corporation,  a Delaware  corporation,  as depositor (in
such  capacity,  the  "Depositor"),  and Wilmington  Trust  Company,  a Delaware
banking corporation, as owner trustee (the "Owner Trustee").

         WHEREAS,  the Depositor and the Owner Trustee have  previously  entered
into a Deposit Trust  Agreement dated as of December 22, 2000 (the "2000-1 Trust
Agreement") relating to the formation of Delta Funding Residual Trust 2000-1;

         WHEREAS,  Section 10.1 of the 2000-1 Trust Agreement provides that upon
the written request of the  Certificateholders  and, prior to the termination of
the  Indenture,  with the prior written  consent of the  Collateral  Agent,  the
Deposit Trust Agreement may be amended or supplemented as provided herein;

         WHEREAS, the Certificateholder has requested,  and the Collateral Agent
has consented to, the amendments to the 2000-1 Trust Agreement set forth herein;

         WHEREAS,  all acts and things  prescribed by law and by the Depositor's
and the Owner Trustee's  Certificates of Incorporation  and By-laws (each as now
in effect)  necessary to make this Amendment a valid instrument  legally binding
on the  Depositor and the Owner Trustee for the purposes  herein  expressed,  in
accordance with its terms, have been duly done and performed.

         NOW THEREFORE, in consideration of the foregoing and for other good and
valuable  consideration,  the  receipt  of which  is  hereby  acknowledged,  the
Depositor and the Owner Trustee hereby agree as follows:

         1.      DEFINED TERMS. Capitalized terms used herein without definition
 shall have the meanings assigned to them in the 2000-1 Trust Agreement.

         2.      AMENDMENTS.

         (a) The definition of  "Collateral  Test" set forth in Article 1 of the
2000-1  Trust  Agreement  is hereby  deleted in its entirety and replaced by the
following:

         "'Collateral  Test'  shall  mean  compliance  by the  Company  with the
         Residual Receivable Maintenance  Requirements set forth in Section 4.17
         of the Indenture."

         (b) The definition of "Release Certification" set forth in Article 1 of
the 2000-1 Trust Agreement is hereby deleted in its entirety and replaced by the
following:

         "'Release  Certification' shall mean the certification by the Depositor
         in  connection  with the  release  of  amounts  in the Cash  Collateral
         Account  pursuant  to  Section  3.3 in the form  attached  as Exhibit E
         hereto."

         (c) The definition of "Released Certificates" set forth in Article 1 of
the 2000-1 Trust Agreement is hereby deleted in its entirety.

         (d) The definition of "Underlying Agreements" set forth in Article 1 of
the 2000-1 Trust Agreement is hereby deleted in its entirety and replaced by the
following:

         "'Underlying Agreements' shall mean as of any date of determination any
         or all of the pooling and servicing  agreements and/or trust agreements
         pursuant to which the Underlying Certificates were issued."

         (e) Paragraph (b) of  Section 3.3  of  the 2000-1  Trust  Agreement is
hereby  deleted in its entirety and replaced by the following:

         "(b) Upon  satisfaction  of the  conditions  to a release from the Cash
         Collateral  Account  as set  forth in the  Release  Certification,  and
         subject to the  provisions  of Section  4.2(d),  the Depositor may from
         time  to  time  deliver  to the  Owner  Trustee,  with  a  copy  to the
         Collateral  Agent, a Release  Certification  and, upon receipt thereof,
         the Owner Trustee shall  authorize the Depositor to withdraw the amount
         specified  therein  from the Cash  Collateral  Account  and to pay such
         amount to or to the order of the  Depositor.  Upon such  payment,  such
         amount shall no longer be part of the Trust Estate. Notwithstanding the
         generality of the  foregoing,  no withdrawals of cash or other property
         from the Cash  Collateral  Account by the Depositor  shall be permitted
         after June 30, 2001."

         (f) Section 4.1 of the 2000-1 Trust Agreement is hereby  deleted in its
entirety and replaced by the following:

         "Section 4.1      DELETED."

         (g) Paragraph (a) of Section  4.2  of  the  2000-1  Trust  Agreement is
hereby  deleted in its entirety and replaced by the following:

         "(a)  On  each  Underlying  Distribution  Date  on  which  amounts  are
         distributed to the Trust,  the Owner Trustee shall deposit such amounts
         into the Certificate  Account.  On each Payment Date, the Owner Trustee
         (or its Agent other than the Depositor or any Affiliate) shall withdraw
         from  the  Certificate  Account  all  Certificateholder  Funds  then on
         deposit therein, and the Owner Trustee (or its Agent) shall, subject to
         Section  4.2(d),  either  (i) pay such  Certificateholder  Funds to the
         Certificateholders   if,  as  shown  on  the  most  recent   Compliance
         Certification  or  Release  Certification,   the  Collateral  Test  was
         satisfied or (ii) otherwise  transfer such funds to the Cash Collateral
         Account.  Notwithstanding the generality of the foregoing,  no payments
         of Certificateholder Funds to the Certificateholders shall be permitted
         after June 30, 2001, and thereafter all  Certificateholder  Funds shall
         remain in the Certificate Account."

         (h) Exhibit D of the 2000-1 Trust  Agreement  is hereby  deleted in its
entirety and replaced by Exhibit 1 hereto.

         (i) Exhibit E of the 2000-1 Trust  Agreement  is hereby  deleted in its
entirety and replaced by Exhibit 2 hereto.

         3.  2000-1 TRUST AGREEMENT RATIFIED. Except as expressly amended hereby
, the 2000-1 Trust Agreement is in all respects ratified and confirmed  and  all
the  terms, conditions  and  provisions thereof shall remain in  full force  and
effect.

         4.  SUCCESSORS AND ASSIGNS.  This  Amendment  shall be binding upon and
inure to the benefit of the parties hereto and their  respective  successors and
assigns.

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

         6.  GOVERNING  LAW.  THE  INTERNAL  LAW OF THE STATE OF DELAWARE  SHALL
GOVERN AND BE USED TO CONSTRUE THIS  AMENDMENT  WITHOUT  REGARD TO PRINCIPLES OF
CONFLICTS OF LAW THEREOF.

<PAGE>

         IN WITNESS  WHEREOF,  each of the  signatories  hereto has caused  this
Amendment to be executed and delivered by its officer  thereunto duly authorized
as of the date first above written.

                                DF SPECIAL HOLDINGS CORPORATION,
                                as depositor

                                By: /S/ MARC E. MILLER
                                ----------------------------
                                  Name: Marc E. Miller
                                  Title: Vice President

                                WILMINGTON TRUST COMPANY,
                                in its individual capacity and as Owner Trustee

                                By: /S/ CHARISSE L. RODGERS
                                ----------------------------
                                  Name: Charisse L. Rodgers
                                  Title: Assistant Vice President

ACKNOWLEDGMENT OF CONSENT

U.S. BANK TRUST NATIONAL ASSOCIATION,
as Collateral Agent

By: /S/ PATTY J. KAPSCH
----------------------------
   Name: Patty J. Kapsch
   Title: Trust Officer

<PAGE>

                                                                     EXHIBIT 1

                                                 [EXHIBIT D TO TRUST AGREEMENT]

                             COMPLIANCE CERTIFICATE

         DF Special Holdings  Corporation,  as depositor under the Deposit Trust
Agreement,  dated as of  __________,  2000 (the "Trust  Agreement")  relating to
Delta Funding  Residual  Holding Trust 2000-1 (the "Trust"),  hereby  certifies,
represents and warrants to [Wilmington Trust Company, as Owner Trustee,] that as
of ________, 200_:

                  1. The Collateral Test is satisfied.

                  2. The requirements of Section 4.2 are satisfied.

                  3. A  true  copy  of  this  Compliance  Certificate  has  been
                     delivered to the Collateral Agent.

         Capitalized  terms used but not defined  herein  shall have the meaning
ascribed to such terms in the Trust Agreement.

                  IN WITNESS  WHEREOF,  the  undersigned  has duly executed this
Certificate on the ____ day of __________, 200_.

                                       DF SPECIAL HOLDINGS CORPORATION

                                       By:
                                       -----------------------------
                                          Name:
                                          Title:

<PAGE>

                                                                     EXHIBIT 2

                                                [EXHIBIT E TO TRUST AGREEMENT]

                              RELEASE CERTIFICATION

                  DF  Special  Holdings  Corporation,  as  depositor  under  the
Deposit Trust Agreement, dated as of ____________,  2000 (the "Trust Agreement")
relating to Delta Funding  Residual  Holding  Trust 2000-1 (the "Trust")  hereby
certifies,  represents  and  warrants to  [Wilmington  Trust  Company,  as Owner
Trustee,] as follows:

                  1. The Depositor hereby requests the release of $_______  from
                     the Cash Collateral Account

                  2. Upon and after  giving  effect to the release  specified in
                     Paragraph 1:

                           (a)      The Collateral Test is satisfied.

                           (b)      The requirements of Sections 4.2(d) of the
                                    Trust Agreement are satisfied.

                           (c)      A true  copy of this  Release  Certification
                                    has been delivered to the Collateral Agent.

                  3. The  release  requested  hereby  does not  violate the last
                     sentence of Section  3.3(b) or the last sentence of Section
                     4.2(a) of the Trust Agreement.

         Capitalized  terms used but not defined  herein shall have the meanings
ascribed to such terms in the Trust Agreement.

         IN  WITNESS   WHEREOF,   the   undersigned   has  duly   executed  this
certification as of ____________________.

                                        DF SPECIAL HOLDINGS CORPORATION

                                        By:
                                           ---------------------------
                                            Name: Marc E. Miller
                                            Title: Vice President

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