Document:

EXHIBIT 4.11

                                                                                                                                                           

 

MORTGAGE LOAN PURCHASE AND SALE AGREEMENT

 

 

Between

 

 

Washington Mutual Mortgage Securities Corp.

(Seller)

 

and

 

WaMu  Asset Acceptance Corp.

 (Purchaser)

 

 

Dated as of April 20, 2006

 

Residential First Lien Mortgage Loans

Flow Delivery Program 

                                                                                                                                                           

 

 

TABLE OF CONTENTS

	 	Page
	
ARTICLE 1. DEFINITIONS

	
1

	
ARTICLE 2. SALE AND CONVEYANCE OF MORTGAGE LOANS, PAYMENT OF PURCHASE PRICE, DELIVERY OF MORTGAGE FILES

	
10

	
Section 2.1.  Sale and Conveyance of Mortgage Loans; Payment of Purchase Price

	
10

	
Section 2.2.  Delivery of Mortgage Files

	
11

	
Section 2.3.  Recordation of Mortgages and Assignments of Mortgages

	
11

	
Section 2.4.  Repurchases of and Substitutions for Defective Mortgage Loans

	
12

	
ARTICLE 3. REPRESENTATIONS AND WARRANTIES OF THE SELLER CONCERNING THE MORTGAGE LOANS; REPURCHASE OR SUBSTITUTION OF MORTGAGE LOANS

	
14

	
Section 3.1.  Seller Representations and Warranties Concerning the Mortgage Loans

	
14

	
Section 3.2.  Additional Seller Representations and Warranties

	
24

	
Section 3.3.  Repurchases and Substitutions in the Event of Breach of Seller Representations and Warranties

	
26

	
ARTICLE 4. COVENANTS

	
27

	
Section 4.1.  Cooperation

	
27

	
Section 4.2.  Representations, Warranties, Covenants and Indemnities

	
27

	
Section 4.3.  Delivery of Documents

	
27

	
Section 4.4.  Consents and Approvals

	
27

	
Section 4.5.  Confidentiality

	
28

	
ARTICLE 5. CONDITIONS TO PURCHASE

	
28

	
Section 5.1.  Required Documents

	
28

	
Section 5.2.  Correctness of Representations and Warranties

	
28

	
Section 5.3.  Compliance With Conditions

	
28

	
Section 5.4.  Costs

	
29

	
ARTICLE 6. SALE PURSUANT TO Pooling and Servicing Agreement

	
29

	
Section 6.1.  Seller’s Consent to Assignment

	
29

	
Section 6.2.  Indemnification

	
29

	
ARTICLE 7. MISCELLANEOUS PROVISIONS

	
30

	
Section 7.1.  Amendment

	
30

	
Section 7.2.  Recordation of Agreement

	
30

	
Section 7.3.  Governing Law

	
31

	
Section 7.4.  General Interpretive Principles

	
31

	
Section 7.5.  Notices

	
31

	
Section 7.6.  Severability of Provisions

	
32

	
Section 7.7.  Exhibits

	
32

	
Section 7.8.  Counterparts; Successors and Assigns

	
32

	
Section 7.9.  Effect of Headings

	
33

	
Section 7.10.  Other Agreements Superseded

	
33

	
Section 7.11.  Intention of the Parties

	
33

	
Section 7.12.  Nonsolicitation

	
33

	
Section 7.13.  Attorneys’ Fees

	
34

	
Section 7.14.  Security Interest

	
34

	
Section 7.15.  Covenant Not to Place Purchaser or Trust Into Bankruptcy

	
35

	
 

	
 

MORTGAGE LOAN PURCHASE AND SALE AGREEMENT

THIS MORTGAGE LOAN PURCHASE AND SALE AGREEMENT dated as of April 20, 2006 is between WaMu Asset Acceptance Corp., a Delaware corporation, as purchaser, and Washington Mutual Mortgage Securities Corp., a Delaware
corporation, as seller.

PRELIMINARY STATEMENT

WHEREAS, in reliance upon the representations, warranties and covenants of the Seller contained herein, the Purchaser desires to purchase from the Seller, from time to time, and the Seller desires to sell to the
Purchaser, from time to time, certain residential first lien and second lien mortgage loans, subject to the terms and conditions of this Agreement, without recourse;

WHEREAS, the Purchaser and the Seller desire to prescribe in this Agreement the manner of sale by the Seller and purchase by the Purchaser of such mortgage loans; and

WHEREAS, following each purchase of mortgage loans from the Seller, the Purchaser intends to effect a Sale (as defined below) with respect to those mortgage loans pursuant to a Pooling and Servicing Agreement (as defined
below).

NOW, THEREFORE, the Purchaser and the Seller agree as follows:

 

ARTICLE 1.

DEFINITIONS

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

Adjustable Rate Mortgage Loan:  A Mortgage Loan which provides for an adjustable Mortgage Rate payable with respect thereto.

Adjustment Date:  With respect to each Adjustable Rate Mortgage Loan, each date, on which the Mortgage Rate of such Mortgage Loan changes pursuant to the related Mortgage Note.

Advance:  As defined in the related Pooling and Servicing Agreement.

Agreement:  This Mortgage Loan Purchase and Sale Agreement, including all exhibits, attachments and schedules hereto, and all amendments hereof and supplements hereto.

Appraised Value:  With respect to any Mortgaged Property, the value thereof as determined by an appraisal made for the originator of the related Mortgage Loan at the time of origination of such Mortgage Loan by an
appraiser who met the minimum requirements of Fannie Mae.

Assignment:  An assignment of Mortgage, notice of transfer or equivalent instrument, in recordable form (excepting therefrom, if applicable, the mortgage recordation information which has not been required pursuant
to this Agreement or returned by the applicable recorder’s office), which is sufficient under the laws of the jurisdiction in which the related Mortgaged Property is located to reflect of record the sale of the Mortgage.

 

 

Assignment of Proprietary Lease:  With respect to a Cooperative Loan, the assignment or mortgage of the related Cooperative Lease by the Mortgagor to the originator of the Cooperative Loan.

Certificates:  As defined in the applicable Term Sheet.

Closing Date:  With respect to any Mortgage Loan, the meaning set forth in the applicable Term Sheet.

Code:  The Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto.

Confidential Pricing Supplement:  A Confidential Pricing Supplement with respect to the Mortgage Loans purchased by the Purchaser from the Seller on a Closing Date, in substantially the form attached as Exhibit
C hereto.

Cooperative:  A private cooperative housing corporation which owns or leases land and all or part of a building or buildings, including apartments, spaces used for commercial purposes and common areas therein, and
whose board of directors authorizes, among other things, the sale of Cooperative Stock.

Cooperative Apartment:  A dwelling unit in a multi-dwelling building owned or leased by a Cooperative, which unit the Mortgagor has an exclusive right to occupy pursuant to the terms of a proprietary lease or
occupancy agreement in accordance with the laws of the state in which the building is located.

Cooperative Lease:  With respect to a Cooperative Loan, the proprietary lease or occupancy agreement with respect to the Cooperative Apartment occupied by the Mortgagor and relating to the related Cooperative Stock,
which lease or agreement confers an exclusive right to the holder of such Cooperative Stock to occupy such apartment.

Cooperative Loan:  A Mortgage Loan made in respect of a Cooperative Apartment, evidenced by a Mortgage Note and secured by the related Cooperative Stock and the related Cooperative Lease, together with (i) the
related Security Agreement, (ii) the related Cooperative Stock Certificate, (iii) the related assignment or mortgage of the Cooperative Lease, (iv) the related financing statements, (v) the related stock power or other similar instrument and (vi) the related
Recognition Agreement.

Cooperative Stock:  With respect to a Cooperative Loan, the stock, partnership interest or other ownership instrument in the related Cooperative.

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Cooperative Stock Certificate:  With respect to a Cooperative Loan, the stock certificate or other instrument evidencing the related Cooperative Stock.

Curtailment:  Any payment of principal on a Mortgage Loan, made by or on behalf of the related Mortgagor, other than a Monthly Payment (including a Monthly Payment received prior to its scheduled Due Date, which is
intended to be applied on its scheduled Due Date) or a Payoff, which is applied to reduce the outstanding principal balance of the Mortgage Loan.

Custodian:  As defined in the related Term Sheet.

Cut-off Date:  As to each Mortgage Loan, the first day of the month in which the applicable Closing Date occurs.

Cut-off Date Principal Balance:  As to each Mortgage Loan, the principal balance of such Mortgage Loan remaining to be paid as of the close of business on the applicable Cut-off Date, after deduction and application
of all payments of principal due on or before such Cut-off Date, whether or not received.

Deleted Mortgage Loan:  A Mortgage Loan for which another Mortgage Loan is substituted pursuant to and in accordance with the provisions of Section 2.4 or 3.3.

Disclosure Documents:  As defined in Section 6.2(a).

Due Date:  With respect to any Mortgage Loan, the day of the month on which Monthly Payments on such Mortgage Loan are due, exclusive of any days of grace, which day shall be the first day of the month unless
otherwise specified on the related Mortgage Loan Schedule.

Fannie Mae:  The Federal National Mortgage Association and any successor thereto.

Fixed Rate Mortgage Loan:  A Mortgage Loan which provides for a fixed Mortgage Rate payable with respect thereto.

Freddie Mac:  The Federal Home Loan Mortgage Corporation and any successor thereto.

Gross Margin:  With respect to each Adjustable Rate Mortgage Loan, the fixed percentage set forth in the related Mortgage Note that is added to the Index on each Adjustment Date in accordance with the terms of the
related Mortgage Note used to determine the Mortgage Rate for such Mortgage Loan.

Group I Mortgage Loans:  Those Mortgage Loans identified as Group I Mortgage Loans on the Mortgage Loan Schedule.

Group II Mortgage Loans:  Those Mortgage Loans identified as Group II Mortgage Loans on the Mortgage Loan Schedule.

High Cost/Covered Loan:  As defined in the related Term Sheet.

3

 

Index:  With respect to any Adjustable Rate Mortgage Loan, the index set forth in the related Mortgage Note, which index is added to the Gross Margin to determine the Mortgage Rate on each date on which the Mortgage
Rate is subject to adjustment.

Loan-to-Value Ratio:  As of any date and as to any Mortgage Loan, the fraction, expressed as a percentage, the numerator of which is the (x) Principal Balance of the Mortgage Loan (if such Mortgage Loan is secured
by a first lien on the related Mortgaged Property) or the sum of the Principal Balance of the Mortgage Loan and any other mortgage loan secured by a senior lien on the related Mortgaged Property (if such Mortgage Loan is secured by a junior lien on the related
Mortgaged Property) and the denominator of which is (y) the Value of the related Mortgaged Property.

Maximum Mortgage Rate:  With respect to each Mortgage Loan, the percentage set forth in the related Mortgage Note as the maximum Mortgage Rate thereunder.

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

MERS Loan:  Any Mortgage Loan registered on the MERS® System for which MERS appears as the mortgagee of record on the related Mortgage or on an assignment thereof.

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

MIN:  The Mortgage Identification Number for a MERS Loan.

Minimum Mortgage Rate:  With respect to each Mortgage Loan, the percentage set forth in the related Mortgage Note as the minimum Mortgage Rate thereunder.

MOM Loan:  A MERS Loan that was registered on the MERS® System at the time of origination thereof and for which MERS appears as the mortgagee of record on the related Mortgage.

Monthly Payment:  With respect to any Mortgage Loan, the scheduled monthly payment of principal and/or interest on such Mortgage Loan which is due on the related Due Date for such Mortgage Loan.

Mortgage:  The mortgage, deed of trust, or other instrument securing a Mortgage Note.

Mortgage File:  With respect to any Mortgage Loan, the documents or instruments with respect to such Mortgage Loan described in Exhibit A hereto.

Mortgage Rate:  With respect to any Mortgage Loan, the per annum rate at which interest accrues on such Mortgage Loan pursuant to the terms of the related Mortgage Note.

Mortgage Loan:  Each mortgage loan and cooperative loan (if any), including each Qualified Substitute Mortgage Loan, listed on the Mortgage Loan Schedule to a Term Sheet. With respect to each Mortgage Loan that is a
Cooperative Loan, “Mortgage Loan” shall include, but not be limited to, the Mortgage Note and the related Security Agreement, Assignment of Proprietary Lease, Recognition Agreement, Cooperative Stock Certificate and Cooperative Lease and, with respect to
each Mortgage Loan other than a Cooperative Loan, “Mortgage Loan” shall include, but not be limited to, the Mortgage Note and the related Mortgage.

4

 

 

Mortgage Loan Schedule:  The Schedule of Mortgage Loans (which may consist of one or more separate schedules) attached as Schedule I to a Term Sheet. The Mortgage Loan Schedule shall set forth at least the
following information with respect to each Mortgage Loan listed therein to the extent applicable:

(i)           the Mortgagor’s name and the originator’s Mortgage Loan identifying number;

(ii)           the street address of the Mortgaged Property including the state and zip code;

(iii)          a code indicating whether the Mortgaged Property is owner‐occupied;

(iv)          the type of Residential Dwelling constituting the Mortgaged Property;

(v)          the original months to maturity;

(vi)          the Loan‐to‐Value Ratio and the combined Loan‐to‐Value Ratio at origination;

(vii)         the Mortgage Rate in effect immediately following the related Cut‐off Date;

(viii)        the date on which the first Monthly Payment was due on the Mortgage Loan;

(ix)          the stated maturity date;

(x)          the amount of the Monthly Payment due on the first Due Date after the Cut‐off Date;

(xi)          the last Due Date on which a Monthly Payment was actually applied to the unpaid Principal Balance;

(xii)         the original principal amount of the Mortgage Loan;

(xiii)        the Scheduled Principal Balance of the Mortgage Loan as of the close of business on the related Cut‐off Date;

(xiv)        whether such Mortgage Loan is a Fixed Rate Mortgage Loan or an Adjustable Rate Mortgage Loan, and with respect to each Adjustable Rate Mortgage Loan:  (a) the Gross Margin, (b) the
Maximum Mortgage Rate, (c) the Minimum Mortgage Rate, (d) the Periodic Rate Cap for the first Adjustment Date and each subsequent Adjustment Date and (e) the next Adjustment Date immediately following the related Cut‐off Date;

5

 

 

(xv)         a code indicating the purpose of the Mortgage Loan (i.e., purchase financing, rate/term refinancing, cash‐out refinancing);

(xvi)        the Mortgage Rate at origination;

(xvii)       a code indicating the documentation program;

(xviii)      the Seller’s risk grade and the FICO score;

(xix)        the Origination Value of the Mortgaged Property;

(xx)         the sale price of the Mortgaged Property, if applicable;

(xxi)        whether such Mortgage Loan is secured by a first lien or a second lien on the related Mortgaged Property;

(xxii)       the date of origination;

(xxiii)      the stated remaining months to maturity as of the related Cut‐off Date;

(xxiv)      the current principal and interest payment of the Mortgage Loan as of the related Cut‐off Date;

(xxv)       the interest “paid to date” of the Mortgage Loan as of the related Cut‐off Date;

(xxvi)      a code indicating whether the Mortgage Loan is a Group I Mortgage Loan or a Group II Mortgage Loan;

(xxvii)     a code indicating the Index that is associated with such Mortgage Loan (if such Mortgage Loan is an Adjustable Rate Mortgage Loan);

(xxviii)     the rate adjustment frequency (if such Mortgage Loan is an Adjustable Rate Mortgage Loan);

(xxix)      the number of years the prepayment penalty is in effect; and

(xxx)       with respect to each MOM Loan, the related MIN.

The Mortgage Loan Schedule shall set forth the following information, with respect to the Mortgage Loans in the aggregate as of the related Cut‐off Date:  (1) the number of Mortgage Loans; (2) the Cut‐off Date Principal
Balance of the Mortgage Loans; (3) the weighted average Mortgage Rate of the Mortgage Loans and (4) the weighted average maturity of the Mortgage Loans.

6

 

 

Mortgage Note:  The note or other evidence of the indebtedness of a Mortgagor under a Mortgage Loan.

Mortgaged Property:  With respect to any Mortgage Loan, other than a Cooperative Loan, the real property, together with improvements thereto, and, with respect to any Cooperative Loan, the related Cooperative Stock
and Cooperative Lease, securing the indebtedness of the Mortgagor under the related Mortgage Note.

Mortgagor:  The obligor(s) on a Mortgage Note.

Net Mortgage Rate:  With respect to each Mortgage Loan, the Mortgage Rate less the Servicing Fee Rate.

NIMS Insurer:  The “NIMS Insurer” under the related Pooling and Servicing Agreement.

Origination Value:  With respect to any Mortgaged Property, the lesser of (i) the Appraised Value thereof and (ii) the value thereof as determined and assigned at origination by a review appraisal conducted by the
Seller or its affiliate.

Payoff:  Any payment of principal on a Mortgage Loan made by or on behalf of the related Mortgagor equal to the entire outstanding principal balance of such Mortgage Loan, if received in advance of the last
scheduled Due Date for such Mortgage Loan and accompanied by an amount of interest equal to accrued unpaid interest on the Mortgage Loan to the date of such payment in full.

Periodic Rate Cap:  With respect to each Adjustable Rate Mortgage Loan and any Adjustment Date therefor, the fixed percentage set forth in the related Mortgage Note, which is the maximum amount by which the Mortgage
Rate for such Mortgage Loan may increase or decrease (without regard to the Maximum Mortgage Rate or the Minimum Mortgage Rate) on such Adjustment Date from the Mortgage Rate in effect immediately prior to such Adjustment Date.

Person:  Any individual, corporation, partnership, limited liability company, joint venture, association, joint‐stock company, trust, unincorporated organization, government or any agency or political
subdivision thereof, or any other entity or organization, whether or not a legal entity.

Pooling and Servicing Agreement:  As defined in the applicable Term Sheet, as such Pooling and Servicing Agreement is in effect on its date of execution.

Prepayment Charge:  With respect to any Mortgage Loan, the charges or premiums, if any, due in connection with a full (but not partial) prepayment of such Mortgage Loan in accordance with the terms
thereof.

7

 

 

Prepayment Charge Schedule:  As of the related Cut-off Date, a list attached to the related Term Sheet as Schedule I (including the Prepayment Charge Summary attached thereto), setting forth the following
information with respect to each Prepayment Charge:

(i)         the Mortgage Loan identifying number;

(ii)        a code indicating the type of Prepayment Charge;

(iii)       the state of origination of the related Mortgage Loan;

(iv)       the date on which the first monthly payment was due on the related Mortgage Loan;

(v)        the term of the related Prepayment Charge; and

(vi)       the principal balance of the related Mortgage Loan as of the related Cut‐off Date.

The Prepayment Charge Schedule shall be amended from time to time by the Servicer in accordance with the provisions of this Agreement and a copy of each related amendment shall be furnished by the Servicer to the NIMS Insurer and the
Trustee.

Principal Balance:  With respect to any Mortgage Loan (including any Qualified Substitute Mortgage Loan), as of any date of determination, the scheduled principal balance of such Mortgage Loan under the terms of the
related Mortgage Note as of such date, reduced by any Curtailments received with respect to such Mortgage Loan prior to the calendar month of determination and by any Payoff received on or before the 14th day of the calendar month of determination, and without
adjustment solely by reason of any bankruptcy or similar proceeding or any moratorium or similar waiver or grace period.

Principal Prepayment:  Any payment of principal made by the Mortgagor on a Mortgage Loan which is received in advance of its scheduled Due Date and which is not accompanied by an amount of interest representing the
full amount of scheduled interest due on any due date in any month or months subsequent to the month of prepayment.

Purchase Price:  For each Mortgage Loan, an amount equal to the sum of (i) the product of the Cut-off Date Principal Balance of such Mortgage Loan, multiplied by the related Purchase Price Percentage, and (ii) the
amount of interest (computed at the Net Mortgage Rate) that has accrued on the Cut-off Date Principal Balance of such Mortgage Loan from the related Cut-off Date to but not including the related Closing Date.

Purchase Price Percentage:  For each Mortgage Loan, as defined in the related Confidential Pricing Supplement.

Purchaser:  WaMu Asset Acceptance Corp., a Delaware corporation, and all successors in interest pursuant to Sections 6.1 and 7.8 hereof.

8

 

 

Qualified Substitute Mortgage Loan:  A Mortgage Loan that is substituted for another Mortgage Loan pursuant to and in accordance with the provisions of Section 2.4 or 3.3.

Rating Agencies:  Each nationally recognized statistical rating organization that has rated the related Certificates at the request of the Purchaser.

Recognition Agreement:  With respect to a Cooperative Loan, the recognition agreement between the Cooperative and the originator of such Cooperative Loan.

Recording Documents:  With respect to each Mortgage Loan, the documents referred to in clauses (ii), (iii), (iv) and (v) on Exhibit A attached hereto.

Refinanced Mortgage Loan:  A Mortgage Loan the proceeds of which were not used to purchase the related Mortgaged Property.

Repurchase Price:  With respect to any Mortgage Loan to be repurchased by the Seller pursuant to Section 2.4 or 3.3, the “Purchase Price” as defined in the related Pooling and Servicing
Agreement.

Residential Dwelling:  Any one of the following:  (i) a detached one-family dwelling, (ii) a detached two- to four-family dwelling, (iii) a one-family dwelling unit in a Fannie Mae eligible condominium project
or a Freddie Mac eligible condominium project, (iv) a manufactured home, or (v) a detached one-family dwelling in a planned unit development, none of which is a cooperative or mobile home.

Sale:  The sale of Mortgage Loans by the Purchaser to a Trust pursuant to a Pooling and Servicing Agreement.

Security Agreement:  With respect to a Cooperative Loan, the agreement or mortgage creating a security interest in favor of the originator of the Cooperative Loan in the related Cooperative Stock.

Seller:  Washington Mutual Mortgage Securities Corp., and its assigns and successors in interest.

Seller Officer’s Certificate:  A certificate signed by the Chairman of the Board, the President, any Vice President or the Treasurer of the Seller.

Seller’s Information:  As defined in Section 6.2(a).

Servicer:  As defined in the related Pooling and Servicing Agreement.

Servicing Advance:  As defined in the related Pooling and Servicing Agreement.

Servicing Fee Rate:  With respect to each Mortgage Loan, the percentage set forth as such for such Mortgage Loan in the Mortgage Loan Schedule.

9

 

 

Stated Principal Balance:  As defined in the related Pooling and Servicing Agreement.

Substitution Adjustment:  For any month in which the Seller substitutes one or more Qualified Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the amount, if any, by which the aggregate Repurchase
Price of all such Deleted Mortgage Loans in Loan Group I or Loan Group II, respectively, exceeds the aggregate of the Stated Principal Balance of the Qualified Substitute Mortgage Loans that will become part of Loan Group I or Loan Group II, respectively, as of the
date of substitution, together with one month’s interest on such Stated Principal Balance at the applicable Net Mortgage Rate, plus all outstanding Advances and Servicing Advances with respect to such Deleted Mortgage Loan.

Term Sheet:  A term sheet with respect to the Mortgage Loans purchased by the Purchaser from the Seller on a Closing Date, in substantially the form attached hereto as Exhibit B.

Trust:  The trust created in connection with the related Pooling and Servicing Agreement.

Trustee:  As defined in the related Pooling and Servicing Agreement.

Underwriting Standards:  For each Mortgage Loan, the published underwriting standards of the Seller, or, if such Mortgage Loan was underwritten pursuant to underwriting standards other than the published
underwriting standards of the Seller, then such other underwriting standards.

Value:  With respect to any Mortgaged Property, the lesser of (i) the Origination Value thereof and (ii) the purchase price paid for the related Mortgaged Property by the Mortgagor with the proceeds of the Mortgage
Loan; provided, however, in the case of a Refinanced Mortgage Loan, such value of the Mortgaged Property is the Origination Value thereof.

 

ARTICLE 2.

SALE AND CONVEYANCE OF MORTGAGE LOANS;

PAYMENT OF PURCHASE PRICE;

DELIVERY OF MORTGAGE FILES

Section 2.1.          Sale and Conveyance of Mortgage Loans; Payment of Purchase Price

(a)                On each Closing Date, upon the receipt of the applicable Purchase Price and such other consideration as set forth in the related Term Sheet, the Seller
shall deliver to the Purchaser a Term Sheet and a Confidential Pricing Supplement. As set forth in such Term Sheet, the Seller sells, transfers, assigns, sets over, and conveys to the Purchaser, without recourse, but subject to the representations, warranties, terms
and provisions of this Agreement and such Term Sheet, all the right, title, and interest of the Seller in and to the Mortgage Loans described in the Mortgage Loan Schedule attached to such Term Sheet.

10

(b)               In payment of the purchase price for each of the Mortgage Loans pursuant to Section 2.1(a) and the applicable Term Sheet, and upon the terms and
conditions of this Agreement, on the related Closing Date the Purchaser shall pay to the Seller by wire transfer of immediately available funds the applicable Purchase Price for each Mortgage Loan purchased on such Closing Date.

(c)                As of each Closing Date, and upon payment of the applicable Purchase Price, the Purchaser shall own and be entitled to receive with respect to each
Mortgage Loan purchased on such Closing Date all Monthly Payments due after the applicable Cut-off Date, and all other payments and recoveries of principal and interest received on or after such Cut-off Date, other than payments that were due on or prior to such
Cut-off Date.

(d)               On or before each Closing Date, the Seller shall deliver to the Purchaser with the related Term Sheet the related Mortgage Loan Schedule and the Prepayment
Charge Schedule, which shall be in hard copy or “read-only” electronic format (as reasonably acceptable to the Seller and the Purchaser).

Section 2.2.          Delivery of Mortgage Files

The Seller shall deliver or cause to be delivered to the Purchaser or its designee (which may be a Custodian), with respect to each Mortgage Loan sold by the Seller hereunder, on or before the related Closing Date, at the Seller’s expense,
each of the items or documents with respect to such Mortgage Loan required to be included in the Mortgage File pursuant to the definition thereof.  If the original or copy of the lender’s title insurance policy was not delivered pursuant to this Section,
the Seller shall deliver or cause to be delivered to the Purchaser, the Trustee or their designee promptly after receipt thereof, and in any event within 120 days after the Closing Date such title insurance policy.  The Seller shall deliver or cause to be
delivered to the Purchaser, the Trustee or their designee promptly upon receipt thereof any other original documents constituting a part of a Mortgage File received with respect to any Mortgage Loan, including, but not limited to, any original documents evidencing an
assumption or modification of any Mortgage Loan.

Section 2.3.          Recordation of Mortgages and Assignments of Mortgages

With respect to each Mortgage Loan (other than any Mortgage Loan for which a Payoff has been made after the related Cut-off Date and prior to the related Closing Date), in instances where, due to a delay on the part of the recording office, any
Recording Documents are not included in the Mortgage File delivered to the Purchaser or its designee on or before the related Closing Date, the Seller shall transmit the Recording Documents to the Purchaser or its designee within 270 days after the related Closing
Date. In instances where, due to a delay on the part of the recording office where any such Recording Documents have been delivered for recordation, the Recording Documents cannot be delivered to the Purchaser or its designee within 270 days after such Closing Date,
the Seller shall deliver to the Purchaser or its designee within such time period a Seller Officer’s Certificate stating the date by which the Seller expects to receive such Recording Documents from the applicable recording office. In the event that Recording
Documents have still not been received by the Seller and delivered to the Purchaser or its designee by the date specified in its previous Seller Officer’s Certificate delivered to the Purchaser or its designee, the Seller shall deliver to the Purchaser or its
designee by such date an additional Seller Officer’s Certificate stating a revised date by which the Seller expects to receive the applicable Recording Documents. This procedure shall be repeated until the Recording Documents have been received by the Seller
and delivered to the Purchaser or its designee.

11

 

 

Section 2.4.          Repurchases of and Substitutions for Defective Mortgage Loans

(a)                Upon receipt of notice from the Purchaser that any document, required to be included (pursuant to the definition of “Mortgage File”) in the
Mortgage File delivered to the Purchaser or its designee with respect to a Mortgage Loan sold by the Seller hereunder, was not included therein or has not been executed, the Seller shall correct or cure such defect within 90 days from the date the Seller receives
notice thereof or, if such defect cannot be corrected or cured within such 90-day period, the Seller shall, not later than the expiration of such 90-day period, either (a) repurchase such Mortgage Loan from the Purchaser or its transferee at the Repurchase Price or
(b) within the three-month period commencing on the related Closing Date (or within the two-year period commencing on such Closing Date if the related Mortgage Loan is a “defective obligation” within the meaning of Section 860G(a)(4)(B)(ii) of the Code
and Treasury Regulation Section 1.860G-2(f)), substitute for such Mortgage Loan one or more Qualified Substitute Mortgage Loans each of which is a “qualified replacement mortgage” (as defined in the Code); provided, however, that in the event that
such defect consists solely of the failure of the Seller to deliver any Recording Document with respect to such Mortgage Loan, due to a delay on the part of the recording office, then the Seller shall not be required to repurchase or substitute for such Mortgage
Loan. If such defect would cause the Mortgage Loan to be other than a “qualified mortgage” (as defined in the Code), then notwithstanding the previous sentence, the repurchase or substitution must occur within the sooner of (i) 90 days from the date the
defect was discovered by the Seller, the Purchaser or any other party to the related Pooling and Servicing Agreement or (ii) in the case of substitution, two years from the related Closing Date.

(b)               Any number of Qualified Substitute Mortgage Loans may be substituted for any number of Deleted Mortgage Loans and a Qualified Substitute Mortgage Loan may be
substituted for a defective Mortgage Loan that is itself a Qualified Substitute Mortgage Loan, in each case subject to the limitations described in the next sentence.  A Qualified Substitute Mortgage Loan substituted for a Deleted Mortgage Loan pursuant to the
terms of this Agreement must, on the date of such substitution, (i) have an outstanding principal balance (or in the case of a substitution of more than one mortgage loan for a Deleted Mortgage Loan, an aggregate principal balance), after application of all scheduled
payments of principal and interest due during or prior to the month of substitution, not in excess of, and not more than 5.00% less than, the outstanding principal balance of the Deleted Mortgage Loan as of the Due Date in the calendar month during which the
substitution occurs, (ii) have a Mortgage Rate not less than (and not more than one percentage point in excess of) the Mortgage Rate of the Deleted Mortgage Loan, (iii) if the Qualified Substitute Mortgage Loan is an Adjustable Rate Mortgage Loan, have a Maximum
Mortgage Rate not greater than the Maximum Mortgage Rate on the Deleted Mortgage Loan and have a Minimum Mortgage Rate not less than the Minimum Mortgage Rate of the Deleted Mortgage Loan, (iv) if the Qualified Substitute Mortgage Loan is an Adjustable Rate Mortgage
Loan, have a Gross Margin equal to or greater than the Gross Margin of the Deleted Mortgage Loan, (v) if the Qualified Substitute Mortgage Loan is an Adjustable Rate Mortgage Loan, have a next Adjustment Date not more than two months later than the next Adjustment
Date on the Deleted Mortgage Loan, (vi) have a remaining term to maturity not greater than (and not more than one year less than) that of the Deleted Mortgage Loan, (vii) be current (with no contractual delinquencies outstanding) as of the date of substitution,
(viii) have a Loan-to-Value Ratio as of the date of substitution equal to or lower than the Loan-to-Value Ratio of the Deleted Mortgage Loan as of such date, (ix) have a risk grading determined by the Seller at least equal to the risk grading assigned on the Deleted
Mortgage Loan, (x) have been underwritten or reunderwritten by the Seller in accordance with the same or, as determined by the Seller, more favorable, underwriting guidelines as the Deleted Mortgage Loan, (xi) with respect to Qualified Substitute Mortgage Loans
substituted for Deleted Mortgage Loans that are Group I Mortgage Loans, have had an original Principal Balance that conformed to Fannie Mae and Freddie Mac loan limits as of the date of its origination, (xii) be secured by the same property type as the Deleted
Mortgage Loan, (xiii) have a lien priority equal to or superior to that of the Deleted Mortgage Loan, (xiv) [reserved], and (xv) conform to each representation and warranty set forth in Section 3.1 of this Agreement applicable to the Deleted Mortgage Loan.  In
the event that one or more mortgage loans are substituted for one or more Deleted Mortgage Loans, the amounts described in clause (i) hereof shall be determined on the basis of aggregate principal balances (applied separately for the Group I Mortgage Loans and Group
II Mortgage Loans), the Mortgage Rates described in clauses (ii) through (v) hereof shall be satisfied for each such mortgage loan, the risk gradings described in clause (ix) hereof shall be satisfied as to each such mortgage loan, the terms described in clause (vi)
hereof shall be determined on the basis of weighted average remaining term to maturity (provided that no such mortgage loan may have a remaining term to maturity longer than the Deleted Mortgage Loan), the Loan-to-Value Ratios described in clause (viii) hereof shall
be satisfied as to each such mortgage loan and, except to the extent otherwise provided in this sentence, the representations and warranties described in clause (xv) hereof must be satisfied as to each Qualified Substitute Mortgage Loan or in the aggregate, as the
case may be.

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(c)                In connection with the substitution of one or more Qualified Substitute Mortgage Loans for one or more Deleted Mortgage Loans on any date, the Seller
shall pay to the Purchaser the Substitution Adjustment for such Deleted Mortgage Loans.

(d)               Concurrently with each such substitution, the Seller shall deliver to and deposit with, or cause to be delivered to and deposited with, the Purchaser or its
designee the Mortgage File for each Qualified Substitute Mortgage Loan. Upon such substitution, the Qualified Substitute Mortgage Loan shall be subject to the terms of this Agreement, to the extent applicable (including, without limitation, the Seller’s
obligations with respect to the Qualified Substitute Mortgage Loan pursuant to this Section 2.4 and Sections 2.3 and 3.3).  The Seller and the Purchaser shall amend the Mortgage Loan Schedule and the Prepayment Charge Schedule in a timely fashion to delete all
repurchased Mortgage Loans and Deleted Mortgage Loans and add all Qualified Substitute Mortgage Loans.

(e)                The Seller shall pay any Repurchase Price or Substitution Adjustment by such method as is specified by the Purchaser in writing.

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(f)                 Monthly Payments due with respect to Qualified Substitute Mortgage Loans in the month of substitution are not owed by the Purchaser and will be
retained by the Seller.  Any such payments received by the Purchaser or its transferee shall promptly be remitted by the Purchaser to the Seller.  For the month of substitution, distributions to the Purchaser will reflect the Monthly Payment due on such
Deleted Mortgage Loan on or before the Due Date in the month of substitution, and the Seller shall thereafter be entitled to retain all amounts subsequently received in respect of such Deleted Mortgage Loan.  Any such payments received by the Seller on such
Deleted Mortgage Loan on or before the Due Date in the month of substitution shall promptly be remitted by the Seller to the Purchaser or its transferee.

(g)                Upon receipt by the Purchaser of the Repurchase Price or the Substitution Adjustment, as applicable, and (in the case of a substitution for a Mortgage
Loan pursuant to this Section 2.4 or Section 3.3) upon receipt by the Purchaser of such instruments of transfer or assignment, in each case without recourse, as shall be necessary to vest in the Purchaser title to any Qualified Substitute Mortgage Loan, the Purchaser
shall release to the Seller the Mortgage File for the repurchased Mortgage Loan or the Deleted Mortgage Loan, as applicable, and shall execute and deliver such instruments of transfer or assignment, in each case without recourse, as shall be necessary to vest in the
Seller title to such Mortgage Loan.

(h)                The Seller shall pay all costs and expenses incurred in connection with any repurchase or substitution by the Seller made pursuant to this Section 2.4 or
Section 3.3.

(i)                  It is understood and agreed that the obligations of the Seller set forth in this Section 2.4 constitute the sole remedies available to
the Purchaser or its transferee respecting the Seller’s failure to include in the Mortgage File for a Mortgage Loan sold by the Seller the documents required to be included therein.

 

ARTICLE 3.

REPRESENTATIONS AND WARRANTIES OF

THE SELLER CONCERNING THE MORTGAGE LOANS;

REPURCHASE OR SUBSTITUTION OF MORTGAGE LOANS

Section 3.1.          Seller Representations and Warranties Concerning the Mortgage Loans

The Seller hereby represents and warrants to and covenants to and agrees with the Purchaser that, as to each Mortgage Loan sold by the Seller hereunder, as of the related Cut-off Date unless otherwise indicated, subject in all cases (including,
without limitation, clauses (xxxv) and (xlvi) to such exceptions, if any, as are set forth on Schedule III to the related Term Sheet:

(i)                        The information set forth on the Mortgage Loan Schedule with respect to each Mortgage Loan is true and
correct in all material respects as of the Cut-off Date, unless another date is set forth on the Mortgage Loan Schedule;

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(ii)                      [reserved];

(iii)                     Each Mortgage is a valid and enforceable first or second lien on the Mortgaged Property, including all improvements
thereon, subject only to (a) the lien of non-delinquent current real property taxes and assessments, (b) covenants, conditions and restrictions, rights of way, easements and other matters of public record as of the date of recording of such Mortgage, such exceptions
appearing of record being acceptable to mortgage lending institutions generally or specifically reflected in the appraisal made in connection with the origination of the related Mortgage Loan and which do not materially interfere with the benefits of the security
intended to be provided by such Mortgage, (c) other matters to which like properties are commonly subject which do not materially interfere with the benefits of the security intended to be provided by such Mortgage and (d) in the case of a second lien, only to a
first lien on such Mortgaged Property;

(iv)                    Immediately prior to the assignment of the Mortgage Loans to the Purchaser, the Seller had good title to, and was the sole legal
and beneficial owner of, each Mortgage Loan, free and clear of any pledge, lien, encumbrance or security interest and has full right and authority, subject to no interest or participation of, or agreement with, any other party to sell and assign the same.  The
form of endorsement of each Mortgage Note satisfied the requirement, if any, of endorsement in order to transfer all right, title and interest of the party so endorsing, as noteholder or assignee thereof, in and to that Mortgage Note; and each Assignment to be
delivered hereunder is in recordable form and is sufficient to effect the assignment of and to transfer to the assignee thereunder the benefits of the assignor, as mortgagee or assignee thereof, under each Mortgage to which that Assignment relates;

(v)                      There is no delinquent tax or assessment lien against any Mortgaged Property;

(vi)                    There is no valid offset, defense or counterclaim to any Mortgage Note (including any obligation of the Mortgagor to pay the
unpaid principal of or interest on such Mortgage Note) or the Mortgage, nor will the operation of any of the terms of the Mortgage Note and the Mortgage, or the exercise of any right thereunder, render the Mortgage Note or the Mortgage unenforceable, in whole or in
part, or subject to any right of rescission, set-off, counterclaim or defense, including the defense of usury and no such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto;

(vii)                   There are no mechanics’ liens or claims for work, labor or material affecting any Mortgaged Property which are or may be a lien
prior to, or equal with, the lien of the related Mortgage, except those which are insured against by the title insurance policy referred to in (xi) below;

(viii)                 Each Mortgaged Property is free of material damage and is at least in average repair;

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(ix)                    Each Mortgage Loan at origination complied in all material respects with applicable local, state and federal laws, including,
without limitation, predatory and abusive lending, usury, equal credit opportunity, real estate settlement procedures, truth-in-lending and disclosure laws, and consummation of the transactions contemplated hereby, including without limitation the receipt of interest
does not involve the violation of any such laws;

(x)                      Neither the Seller nor any prior holder of any Mortgage has modified the Mortgage in any material respect, satisfied,
canceled or subordinated such Mortgage in whole or in part; released the related Mortgaged Property in whole or in part from the lien of such Mortgage; or executed any instrument of release, cancellation, modification or satisfaction with respect thereto (except that
a Mortgage Loan may have been modified by a written instrument signed by the Seller or a prior holder of the Mortgage Loan which has been recorded, if necessary, to protect the interests of the Seller and the Purchaser and which has been delivered to the Purchaser or
any assignee, transferee or designee of the Purchaser as part of the Mortgage File, and the terms of which are reflected in the Mortgage Loan Schedule);

(xi)                    A lender’s policy of title insurance together with a condominium endorsement and extended coverage endorsement, if
applicable, and, with respect to each Adjustable Rate Mortgage Loan, an adjustable rate mortgage endorsement in an amount at least equal to the balance of the Mortgage Loan as of the Cut-off Date or a commitment (binder) to issue the same was effective on the date of
the origination of each Mortgage Loan, each such policy is valid and remains in full force and effect, the transfer of the related Mortgage Loan to the Purchaser and the Trustee does not affect the validity or enforceability of such policy and each such policy was
issued by a title insurer qualified to do business in the jurisdiction where the Mortgaged Property is located and acceptable to Fannie Mae or Freddie Mac and in a form acceptable to Fannie Mae or Freddie Mac on the date of origination of such Mortgage Loan, which
policy insures the Seller and successor owners of indebtedness secured by the insured Mortgage, as to the first or second, as the case may be, priority lien of the Mortgage; no claims have been made under such mortgage title insurance policy and no prior holder of
the related Mortgage, including the Seller, has done, by act or omission, anything which would impair the coverage of such mortgage title insurance policy;

(xii)                   Each Mortgage Loan was originated by, or generated on behalf of, the Seller, or originated by a savings and loan association, savings
bank, commercial bank, credit union, insurance company or similar institution which is supervised and examined by a federal or state authority, or by a mortgagee approved by the Secretary of Housing and Urban Development pursuant to Sections 203 and 211 of the
National Housing Act;

(xiii)                 With respect to each Adjustable Rate Mortgage Loan, on each Adjustment Date, the Mortgage Rate will be adjusted to equal the Index plus the Gross
Margin, rounded to the nearest or highest 0.125%, subject to the Periodic Rate Cap, the Maximum Mortgage Rate and the Minimum Mortgage Rate.  The related Mortgage Note is payable on the first day of each month in self-amortizing monthly installments of principal
and interest (unless such Mortgage Loan is a mortgage loan that requires the payment of interest only with respect to some or all of the related monthly payments as indicated on the Mortgage Loan Schedule), with interest payable in arrears, and requires a Monthly
Payment which is sufficient to fully amortize the outstanding principal balance of the Mortgage Loan over its remaining term and to pay interest at the applicable Mortgage Rate.  No Mortgage Loan is subject to negative amortization.  All rate adjustments
have been performed in accordance with the terms of the related Mortgage Note or subsequent modifications, if any;

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(xiv)                 All of the improvements which were included for the purpose of determining the Value of the Mortgaged Property lie wholly within the boundaries and
building restriction lines of such property, and no improvements on adjoining properties encroach upon the Mortgaged Property;

(xv)                  All inspections, licenses and certificates required to be made or issued with respect to all occupied portions of the Mortgaged Property and,
with respect to the use and occupancy of the same, including but not limited to certificates of occupancy, have been made or obtained from the appropriate authorities and the Mortgaged Property is lawfully occupied under applicable law;

(xvi)                 All parties which have had any interest in the Mortgage, whether as mortgagee, assignee, pledgee or otherwise, are (or, during the period in which
they held and disposed of such interest, were) in compliance with any and all applicable licensing requirements of the laws of the state wherein the Mortgaged Property is located;

(xvii)               The Mortgage Note and the related Mortgage are genuine, and each is the legal, valid and binding obligation of the Mortgagor enforceable against the Mortgagor
by the mortgagee or its representative in accordance with its terms, except only as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and by
law.  To the best of the Seller’s knowledge, all parties to the Mortgage Note and the Mortgage had full legal capacity to execute all Mortgage Loan documents and to convey the estate purported to be conveyed by the Mortgage and each Mortgage Note and
Mortgage have been duly and validly executed by such parties;

(xviii)              The proceeds of each Mortgage Loan have been fully disbursed, there is no requirement for future advances thereunder and any and all requirements as to completion
of any on-site or off-site improvements and as to disbursements of any escrow funds therefor have been complied with.  All costs, fees and expenses incurred in making, closing or recording the Mortgage Loans were paid;

(xix)                 The related Mortgage contains customary and enforceable provisions which render the rights and remedies of the holder thereof adequate for the
realization against the Mortgaged Property of the benefits of the security, including, (i) in the case of a Mortgage designated as a deed of trust, by trustee’s sale, and (ii) otherwise by judicial foreclosure.  There is no homestead or other exemption
available to the Mortgagor which would interfere with the right to sell the Mortgaged Property at a trustee’s sale or the right to foreclose the Mortgage;

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(xx)                  With respect to each Mortgage constituting a deed of trust, a trustee, duly qualified under applicable law to serve as such, has been properly
designated and currently so serves and is named in such Mortgage, and no fees or expenses are or will become payable by the Purchaser to the trustee under the deed of trust, except in connection with a trustee’s sale after default by the Mortgagor;

(xxi)                 There exist no deficiencies with respect to escrow deposits and payments, if such are required, for which customary arrangements for repayment
thereof have not been made, and no escrow deposits or payments of other charges or payments due the Seller have been capitalized under the Mortgage or the related Mortgage Note;

(xxii)               The origination, underwriting and collection practices used by the Seller with respect to each Mortgage Loan have been in all material respects legal, proper,
prudent and customary in the subprime mortgage servicing business.  Each Mortgage Loan is currently being serviced by Washington Mutual Bank;

(xxiii)              There is no pledged account or other security other than real estate securing the Mortgagor’s obligations;

(xxiv)             No Mortgage Loan has a shared appreciation feature, or other contingent interest feature;

(xxv)               [reserved];

(xxvi)             The improvements upon each Mortgaged Property are covered by a valid and existing hazard insurance policy with a generally acceptable carrier that provides for fire
extended coverage and coverage of such other hazards as are customarily covered by hazard insurance policies with extended coverage in the area where the Mortgaged Property is located representing coverage not less than the lesser of the outstanding principal balance
of the related Mortgage Loan or the minimum amount required to compensate for damage or loss on a replacement cost basis.  All individual insurance policies and flood policies referred to in this clause (xxvi) and in clause (xxvii) below contain a standard
mortgagee clause naming the Seller or the original mortgagee, and its successors in interest, as mortgagee, and the Seller has received no notice that any premiums due and payable thereon have not been paid; the Mortgage obligates the Mortgagor thereunder to maintain
all such insurance, including flood insurance, at the Mortgagor’s cost and expense, and upon the Mortgagor’s failure to do so, authorizes the holder of the Mortgage to obtain and maintain such insurance at the Mortgagor’s cost and expense and to
seek reimbursement therefor from the Mortgagor;

(xxvii)            If the Mortgaged Property is in an area identified in the Federal Register by the Federal Emergency Management Agency as subject to special flood hazards, a flood insurance
policy in a form meeting the requirements of the current guidelines of the Flood Insurance Administration is in effect with respect to such Mortgaged Property with a generally acceptable carrier in an amount representing coverage not less than the least of (A) the
original outstanding principal balance of the Mortgage Loan, (B) the minimum amount required to compensate for damage or loss on a replacement cost basis or (C) the maximum amount of insurance that is available under the Flood Disaster Protection Act of
1973;

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(xxviii)          There is no default, breach, violation or event of acceleration existing under the Mortgage or the related Mortgage Note; and neither the Seller nor any other entity involved in
originating or servicing the Mortgage Loan has waived any default, breach, violation or event of acceleration;

(xxix)             Each Mortgaged Property is improved by a one- to four-family residential dwelling, including condominium units and dwelling units in planned unit developments, which does
not constitute property other than real property under state law;

(xxx)               There is no obligation on the part of the Seller or any other party under the terms of the Mortgage or related Mortgage Note to make payments in addition to
those made by the Mortgagor;

(xxxi)             Any future advances made prior to the Cut-off Date have been consolidated with the outstanding principal amount secured by the Mortgage, and the secured principal amount,
as consolidated, bears a single interest rate and single repayment term reflected on the related Mortgage Loan Schedule.  The consolidated principal amount does not exceed the original principal amount of the Mortgage Loan;

(xxxii)            Each Mortgage Loan was underwritten in accordance with the Underwriting Standards as described in the Prospectus Supplement as applicable to its credit grade in all material
respects;

(xxxiii)          Each appraisal of a Mortgage Loan that was used to determine the appraised value of the related Mortgaged Property was conducted generally in accordance with the Underwriting Standards,
and included an assessment by the appraiser of the fair market value of the related Mortgaged Property at the time of the appraisal.  The Mortgage File contains an appraisal of the applicable Mortgaged Property;

(xxxiv)          None of the Mortgage Loans is a graduated payment Mortgage Loan, nor is any Mortgage Loan subject to a temporary buydown or similar arrangement;

(xxxv)           Except as set forth on Schedule III to the related Term Sheet, there are no Mortgage Loans with respect to which the monthly payment due thereon in March, 2006 had not been made,
none of the Mortgage Loans has been contractually delinquent for more than 30 days more than twice during the preceding twelve months and, no Mortgage Loan has ever experienced a delinquency of 60 or more days since the origination thereof;

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(xxxvi)          Each Mortgage contains a provision that is, to the extent not prohibited by federal or state law, enforceable for the acceleration of the payment of the unpaid principal balance of the
Mortgage Loan in the event that the Mortgaged Property is sold or transferred without the prior written consent of the mortgagee thereunder;

(xxxvii)        No misrepresentation, negligence, fraud or similar occurrence with respect to a Mortgage Loan has taken place on the part of any person, including, without limitation, the Mortgagor, any appraiser,
any builder or developer, or any other party involved in the origination of the Mortgage Loan or in the application of any insurance in relation to such Mortgage Loan;

(xxxviii)       Each Mortgage Loan constitutes a “qualified mortgage” within the meaning of Section 860G(a)(3) of the Code;

(xxxix)          The information set forth in the Prepayment Charge Schedule is complete, true and correct in all material respects at the date or dates respecting which such information is furnished and
each Prepayment Charge is permissible and enforceable in accordance with its terms under applicable law upon the Mortgagor’s voluntary Principal Prepayment (except to the extent that:  (1) the enforceability thereof may be limited by bankruptcy,
insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally; or (2) the collectability thereof may be limited due to acceleration in connection with a foreclosure or other involuntary prepayment).  No Mortgage Loan
originated before October 1, 2002 has a Prepayment Charge for a term in excess of five years from the date of its origination and no Mortgage Loan originated on or after October 1, 2002 has a prepayment charge for a term in excess of three years from the
date of its origination;

(xl)                    The Loan-to-Value Ratio for each Mortgage Loan was no greater than 100% at the time of origination;

(xli)                   The first date on which each Mortgagor must make a payment on the related Mortgage Note is no later than 60 days from the date of this
Agreement;

(xlii)                 Except as set forth on Schedule III to the related Term Sheet, with respect to each Mortgage Loan, the related Mortgagor shall not fail or has not
failed to make the first monthly payment due under the terms of the Mortgage Loan by the second succeeding Due Date after the Due Date on which such monthly payment was due;

(xliii)                The transfer, assignment and conveyance of the Mortgage Notes and the Mortgages by the Seller pursuant to this Agreement are not subject to the bulk
transfer or any similar statutory provisions in effect in any relevant jurisdiction, except any as may have been complied with;

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(xliv)               There are no defaults in complying with the terms of the Mortgage, and either (1) any taxes, governmental assessments, insurance premiums, water, sewer and
municipal charges or ground rents which previously became due and owing have been paid, or (2) an escrow of funds has been established in an amount sufficient to pay for every such item which remains unpaid and which has been assessed but is not yet due and
payable.  Except for payments in the nature of escrow payments, including without limitation, taxes and insurance payments, the Seller has not advanced funds, or induced, solicited or knowingly received any advance of funds by a party other than the Mortgagor,
directly or indirectly, for the payment of any amount required by the Mortgage Note, except for interest accruing from the date of the Mortgage Note or date of disbursement of the Mortgage proceeds, whichever is greater, to the day which precedes by one month the Due
Date of the first installment of principal and interest;

(xlv)                 There is no proceeding pending or threatened, for the total or partial condemnation of the Mortgaged Property or the taking by eminent domain of
any Mortgaged Property;

(xlvi)               No Mortgage Loan is subject to the requirements of the Home Ownership and Equity Protection Act of 1994, as amended, or is a “high cost” or
“predatory” loan under any state or local law or regulation applicable to the originator of such Mortgage Loan or which would result in liability to the purchaser or assignee of such Mortgage Loan under any predatory or abusive lending law.  In the
event that Financial Security Assurance, Inc. becomes a NIMS Insurer, no Mortgage Loan is a “covered” loan under the laws of the states of California, Colorado or Ohio;

(xlvii)              No proceeds from any Mortgage Loans were used to finance single-premium credit insurance policies.  No borrower was required to purchase any credit life,
disability, accident or health insurance product as a condition of obtaining the extension of credit.  No borrower obtained a prepaid single-premium credit life, disability, accident or health insurance policy in connection with the origination of the Mortgage
Loan;

(xlviii)            The Seller did not select the Mortgage Loans with the intent to adversely affect the interests of the Purchaser;

(xlix)               The Seller has not received any notice that any Mortgagor has filed for any bankruptcy or similar legal protection since the date of the origination of such
Mortgage Loan.  Prior to the date of the origination of any Mortgage Loan, the Seller did not receive any notice that any Mortgagor has filed for bankruptcy or similar legal protection except as permitted under the Underwriting Guidelines;

(l)                        No Group I Mortgage Loan is a “High-Cost Home Loan” as defined in the Georgia Fair Lending
Act, as amended (the “Georgia Act”), and no Mortgage Loan that was originated on or after October 1, 2002 and before March 7, 2003, is secured by a Mortgaged Property located in the State of Georgia;

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(li)                      No Group I Mortgage Loan is a “High Cost Home Loan” as defined in the Kentucky high-cost loan statute
effective June 24, 2003 (Ky. Rev. Stat. Section 360.100);

(lii)                     No Group I Mortgage Loan is a “High Cost Home Loan” as defined in the New Jersey Home Ownership Act
effective November 27, 2003 (N.J.S.A. 46; 10B-22 et seq.);

(liii)                   No Group I Mortgage Loan is a subsection 10 mortgage under the Oklahoma Home Ownership and Equity Protection Act;

(liv)                   No Group I Mortgage Loan is a “High-Cost Home Loan” as defined in New York Banking Law 6-1;

(lv)                    No Group I Mortgage Loan is a “High Cost Home Loan” as defined in the Arkansas Home Loan Protection Act effective
July 16, 2003 (Act 1340 of 2003);

(lvi)                   No Group I Mortgage Loan is a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act effective
January 1, 2004 (N.M. Stat. Am. §§ 58-21A-1 et seq.);

(lvii)                 [reserved];

(lviii)                Each Group I Mortgage Loan was originated in compliance with the following anti-predatory lending guidelines:

a.         Each Group I Mortgage Loan satisfies the eligibility for purchase requirements and was originated in compliance with Lender Letter # LL03-00 dated April 11, 2000 for Fannie Mae Sellers (the
“Lender Letter”);

b.         No borrower was encouraged or required by the Seller to select a Group I Mortgage Loan product offered by the Group I Mortgage Loan’s originator which is a higher cost product designed for
less creditworthy borrowers, unless at the time of the Group I Mortgage Loan’s origination, such borrower did not qualify taking into account credit history and debt-to-income ratios for a lower-cost credit product then offered by the Group I Mortgage
Loan’s originator or any affiliate of the Group I Mortgage Loan’s originator;

c.         The methodology used in underwriting the extension of credit for each Group I Mortgage Loan employs objective mathematical principles which relate the borrower’s income, assets and liabilities
to the proposed payment and such underwriting methodology does not rely on the extent of the borrower’s equity in the collateral as the principal determining factor in approving such credit extension.  Such underwriting methodology provided reasonable
assurance that at the time of origination (application/approval) the borrower had a reasonable ability to make timely payments on the Group I Mortgage Loan;

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d.         With respect to any Group I Mortgage Loan that contains a provision permitting imposition of a premium upon a prepayment prior to maturity, (i) the Seller’s pricing methods include mortgage
loans with and without prepayment premiums; borrowers selecting Group I Mortgage Loans which include such prepayment premiums receive a monetary benefit, including but not limited to a rate or fee reduction, in exchange for selecting a Group I Mortgage Loan with a
prepayment premium, (ii) prior to the Group I Mortgage Loan’s origination, the borrower had the opportunity to choose between an array of mortgage loan products which included mortgage loan products with prepayment premiums and mortgage loan products that did
not require payment of such a premium, (iii) the prepayment premium is disclosed to the borrower in the loan documents pursuant to applicable state and federal law, and (iv) notwithstanding any state or federal law to the contrary, the Servicer shall not impose such
prepayment premium in any instance when the mortgage debt is accelerated as the result of the borrower’s default in making the loan payments;

e.         All points and fees related to each Group I Mortgage Loan were disclosed in writing to the borrower in accordance with applicable state and federal law.  Except in the case of a Group I
Mortgage Loan in an original principal amount of less than $60,000 which would have resulted in an unprofitable origination, no borrower was charged “points and fees” (whether or not financed) in an amount greater than 5% of the principal amount of such
loan, such 5% limitation calculated in accordance with the Lender Letter;

f.          All fees and charges (including finance charges) and whether or not financed, assessed, collected or to be collected in connection with the origination and servicing of each Group I Mortgage
Loan have been disclosed in writing to the borrower in accordance with applicable state and federal law and regulation;

(lix)             No Group I Mortgage Loan had a principal balance at origination in excess of Fannie Mae’s conforming loan balance limitations for single family loans set forth in
the Fannie Mae Charter Act and the Fannie Mae Selling Guide in effect at the time of such Group I Mortgage Loan's origination;

(lx)              With respect to each Group I Mortgage Loan, information regarding the borrower credit file related to such Mortgage Loan has been furnished to credit reporting
agencies in compliance with the provisions of the Fair Credit Reporting Act and the applicable implementing regulations;

(lxi)             No Mortgage Loan is a “High Cost Loan” or “Covered Loan” (as such terms are defined in the Standard & Poor’s LEVELS® Glossary in
effect on the  related Closing Date, applicable portions of which are attached hereto as Schedule II to the Term Sheet) and no Mortgage Loan originated on or after October 1, 2002 through March 6, 2003 is governed by the Georgia Act;

(lxii)           No Group I Mortgage Loan is a “High Cost Home Mortgage Loan” as defined in the Massachusetts Predatory Home Loan Practices Act effective November 7, 2004 (Mass.
Ann. Laws ch. 183C);

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(lxiii)          No Group I Mortgage Loan is a “High Cost Home Loan” as defined in the Indiana Home Loan Practices Act effective January 1, 2005 (Ind. Code Ann.
§§ 24-9-1 through 24-9-9);

(lxiv)         With respect to any Group I Mortgage Loan originated on or after August 1, 2004, neither the related Mortgage nor the related Mortgage Note requires the Mortgagor to submit to arbitration to
resolve any dispute arising out of or relating in any way to the Mortgage Loan transaction; and

(lxv)           With respect to any second lien mortgage loan that is a Group I Mortgage Loan:  (a) such Mortgage Loan is on a one- to four-family residence that is the principal residence of
the borrower; (b) such Mortgage Loan does not have an original principal balance that exceeds one-half of the Freddie Mac one-unit limitation for first lien mortgage loans, or $208,500 (in Alaska, Guam, Hawaii or Virgin Islands: $312,750), without regard to the
number of units; and (c) the original principal balance of the related first lien mortgage loan plus the original principal balance of any subordinate lien mortgage loans relating to the same Mortgaged Property does not exceed the applicable Freddie Mac loan limit
for first lien mortgage loans for that property type on the related Closing Date.

 

Section 3.2.          Additional Seller Representations and Warranties

The Seller hereby represents and warrants to the Purchaser as of each Closing Date on which the Seller sells Mortgage Loans hereunder, and with respect to such Mortgage Loans, as of such Closing Date:

(i)                  The Seller is a corporation, duly organized, validly existing and in good standing under the laws of the State of Delaware.

(ii)                The Seller has all licenses necessary to carry on its business as now being conducted and is licensed, qualified and in good standing in the states where
the Mortgaged Properties are located if the laws of such states require licensing or qualification in order to conduct business of the type conducted by the Seller and to the extent necessary to ensure the enforceability of each Mortgage Loan.  The Seller has
the corporate power and authority to hold each Mortgage Loan, to sell each Mortgage Loan, to enter into, execute and deliver this Agreement, the Term Sheet, the Confidential Pricing Supplement and all documents and instruments executed and delivered pursuant hereto
and to perform its obligations in accordance therewith.  The execution, delivery and performance of this Agreement by the Seller and the consummation of the transactions contemplated hereby, including, without limitation, the repurchase obligations herein
contained, have been duly and validly authorized.  This Agreement, the Term Sheet, the Confidential Pricing Supplement and all other documents and instruments contemplated hereby to which the Seller is a party, in each case assuming due authorization, execution
and delivery by the Purchaser, evidence the valid, binding and enforceable obligations of the Seller, subject as to enforceability, (i) to bankruptcy, insolvency, receivership, conservatorship, reorganization, arrangement, moratorium, and other laws of general
applicability relating to or affecting creditor’s rights, and (ii) to general principles of equity, whether such enforcement is sought in a proceeding in equity or at law.  All requisite corporate action has been taken by the Seller to make this Agreement
valid and binding upon the Seller in accordance with its terms.

24

 

 

(iii)               No consent, approval, authorization, or order of any court or governmental agency or body relating to the transactions contemplated by this Agreement and the
transfer of legal title to the Mortgage Loans to the Purchaser, is required as to the Seller or, if required, such consent, approval, authorization, or order has been or will, prior to the applicable Closing Date, be obtained, except for any recordation of Mortgages
or assignments of Mortgages or filing of UCC financing statements or amendments thereto to or for the benefit of the Purchaser pursuant to this Agreement.

(iv)              The consummation of the transactions contemplated by this Agreement, including without limitation the transfer and assignment of the Mortgage Loans to the Purchaser
pursuant to this Agreement and the fulfillment of or compliance with the terms and conditions of this Agreement, are in the ordinary course of business of the Seller and will not (i) result in the breach of any term or provision of the certificate of
incorporation or by-laws of the Seller, (ii) result in the breach of any term or provision of, or conflict with or constitute a default under, or result in the acceleration of any obligation under, any material agreement, indenture, loan or credit agreement or
other instrument to which the Seller or its property is subject or (iii) result in the violation of any law, rule, regulation, order, judgment, or decree to which the Seller or its property is subject.

(v)                There is no action, suit, proceeding or investigation pending or, to the best of the Seller’s knowledge, threatened, against the Seller which, either
in any one instance or in the aggregate, is likely, in the Seller’s judgment, to result, in any material impairment of the right or ability of the Seller to carry on its business substantially as now conducted, or which would draw into question the validity of
this Agreement or the Mortgage Loans, or of any action taken or to be taken in connection with the obligations of the Seller contemplated herein or therein, or which would be likely to impair materially the ability of the Seller to perform its obligations hereunder
or thereunder.

(vi)              The Seller is a U.S. Department of Housing and Urban Development (“HUD”) approved mortgagee pursuant to Section 203 of the National Housing
Act of 1934, as amended.  No event has occurred, including but not limited to a change in insurance coverage, which would make the Seller unable to comply with HUD eligibility requirements or which would require notification to HUD.

(vii)             The Seller is not in violation of, and the execution and delivery of this Agreement by the Seller and its performance and compliance with the terms of this Agreement will
not constitute a violation with respect to, any order or decree of any court or any order or regulation of any federal, state, municipal or governmental agency having jurisdiction over the Seller or its assets, which violation might have consequences that would
materially and adversely affect the condition, financial or otherwise, or the operations, of the Seller or its assets or might have consequences that would materially and adversely affect the performance of its obligations and duties hereunder.

25

 

 

(viii)           Upon payment of the Purchase Price by the Purchaser, in the event that the Seller retains record title to a Mortgage, the Seller shall retain such record title to such Mortgage
solely in trust for the Purchaser as owner thereof.

Section 3.3.          Repurchases and Substitutions in the Event of Breach of Seller Representations and Warranties

(a)                It is understood and agreed that the representations and warranties set forth in Sections 3.1 and 3.2 shall survive the sale of Mortgage Loans by the
Seller to the Purchaser and shall inure to the benefit of the Purchaser, notwithstanding any restrictive or qualified endorsement on any Mortgage Note or Assignment.

(b)               Upon discovery by the Seller or the Purchaser of a breach of any of the representations and warranties set forth in Section 3.1 that materially and adversely
affects the value of any Mortgage Loan or the interests of the Purchaser in such Mortgage Loan, the party discovering such breach shall give prompt written notice to the other and the NIMS Insurer. Any breach of the representation set forth in the last sentence of
clause (xxxix), clause (xlvi), the first sentence (xlvii), clause (lxi) and clause (lxiv) of Section 3.1 shall be deemed to materially and adversely affect the value of the related Mortgage Loan or the interests of the Purchaser in the related Mortgage Loan. Within
90 days of its discovery of breach or its receipt of notice of breach from the Purchaser or its designee, the Seller shall repurchase from the Purchaser or its transferee the affected Mortgage Loan or Mortgage Loans or any property acquired in respect thereof, or
substitute one or more Qualified Substitute Mortgage Loans therefor, unless it has cured such breach in all material respects. Any such repurchase or substitution shall be made in the manner and within the time limits set forth in Section 2.4. If such breach would
cause the Mortgage Loan to be other than a “qualified mortgage” (as defined in the Code), then notwithstanding the previous sentence, the repurchase or substitution must occur within the sooner of (i) 90 days from the date the defect was discovered by the
Seller, the Purchaser or any other party to the related Pooling and Servicing Agreement or (ii) in the case of substitution, two years from the related Closing Date.

(c)                Notwithstanding anything herein to the contrary, promptly upon the earlier of discovery by the Seller or receipt of notice by the Seller of the breach of
any representation or warranty of the Seller set forth in Section 3.1(i) if such breach relates to any field on the Mortgage Loan Schedule which identifies any Prepayment Charge or Section 3.1(xxxix), in each case, which materially and adversely affects the
interests of the Purchaser or its designee to any Prepayment Charge and such Prepayment Charge has been triggered pursuant to the terms of the related Mortgage Note, the Seller shall pay the amount of the scheduled Prepayment Charge (net of any amount previously
collected by or paid to the Purchaser or the Trustee in respect of such Prepayment Charge), and the Seller shall have no obligation to repurchase or substitute for such Mortgage Loan.  Payments by the Seller to the Purchaser pursuant to this paragraph shall be
made within two Business Days of the earlier of discovery by the Seller or receipt of notice by the Seller of the breach of the related representation or warranty. 

26

 

(d)               It is understood and agreed that the obligations of the Seller set forth in this Section 3.3 constitute the sole remedies available to the Purchaser or its
transferee respecting a breach of the representations and warranties by the Seller set forth in Section 3.1.

(e)                In addition to such cure, repurchase or substitution obligation, the Seller shall indemnify the Purchaser and hold it harmless against any losses,
damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments, and other costs and expenses resulting from the defense of any claim against the Purchaser by a third party resulting from a breach of the representations and
warranties made by the Seller in this Article 3.

ARTICLE 4.

COVENANTS

Section 4.1.          Cooperation

Each of the Seller and the Purchaser shall cooperate fully with each other and their respective counsel and other representatives and advisors in connection with the steps required to be taken as part of their respective obligations under this
Agreement.

Section 4.2.          Representations, Warranties, Covenants and Indemnities

Each representation, warranty, covenant and indemnity made by the Seller in this Agreement as of each Closing Date shall survive the termination of this Agreement.

Section 4.3.          Delivery of Documents

On the dates specified herein, each party shall deliver to the appropriate persons specified herein all documents and instruments provided for hereunder.

Section 4.4.          Consents and Approvals

The Seller shall obtain, at its sole cost and expense, prior to each Closing Date, all consents and approvals required by law or pursuant to contract to consummate the transactions contemplated hereby.  All such consents will be obtained
without any cost or expense to the Purchaser and will be obtained without any modification in the terms of any of the agreements relating to the Mortgage Loans or the imposition of any provisions or conditions on the Purchaser.

27

 

 

Section 4.5.          Confidentiality

Each party understands that certain information which has been furnished and will be furnished in connection with this transaction is confidential and proprietary, and each party agrees that, with respect to such
information that is marked or identified as confidential or proprietary, such party will maintain the confidentiality of such information and will not without the consent of the party furnishing such information disclose it to others or use it except in connection
with the transactions contemplated by this Agreement.  The parties agree that the completed Confidential Pricing Supplement is confidential, and that the Term Sheet, this Agreement and their other exhibits, including the Mortgage Loan Schedule, and the
underwriting guidelines of the Seller are not confidential.  Information also shall not be deemed confidential or proprietary for these purposes if the information is generally known in the industry concerning a party, if it has been disclosed to the other party
by a third party, or if it is required to be disclosed by law or by regulatory or judicial process.

ARTICLE 5.

CONDITIONS TO PURCHASE

The obligations of the Purchaser to purchase any Mortgage Loans on any Closing Date are subject to the satisfaction, as applicable, prior to or on such Closing Date (or on such other date as expressly provided for herein) of the following
conditions, any of which may be waived in writing by Purchaser:

Section 5.1.          Required Documents

            On or before the Closing Date for the initial purchase of Mortgage Loans hereunder, each party hereto shall have received fully executed counterpart originals of this Agreement. On
each Closing Date, the Purchaser and the Seller shall furnish to the other party fully executed counterpart originals of the relevant Term Sheet and Confidential Pricing Supplement.

Section 5.2.          Correctness of Representations and Warranties

All of the representations and warranties of the Seller under this Agreement shall be true and correct as of such Closing Date (except as otherwise expressly provided for herein), and no event shall have occurred which, with notice or the passage of
time, would constitute a default under this Agreement.

Section 5.3.          Compliance With Conditions

All other terms and conditions of this Agreement to be performed by the Seller on or prior to such Closing Date (or such other date as expressly provided for herein) shall have been duly complied with and performed in all respects.

28

 

Section 5.4.          Costs

The Seller shall pay all costs, fees and expenses incurred in connection with the transfer and delivery of the Mortgage Loans sold by the Seller under this Agreement for the Seller’s accountants, attorneys and other service providers.  In
addition, with respect to each Pooling and Servicing Agreement, the Seller shall (a) reimburse the Purchaser for all reasonable expenses incurred by the Purchaser in connection with the issuance of the related Certificates and (b) pay to the Purchaser a
securitization fee, to be agreed upon separately.

 

ARTICLE 6.

 SALE PURSUANT TO POOLING AND SERVICING AGREEMENT

Section 6.1.          Seller’s Consent to Assignment

(a)                The Seller hereby consents to the assignment by the Purchaser to a Trust, pursuant to a Pooling and Servicing Agreement, of all of the Purchaser’s
rights under (i) this Agreement, to the extent that this Agreement relates to Mortgage Loans transferred by the Purchaser to such Trust, and (ii) the Term Sheet with respect to such Mortgage Loans. The Seller agrees that its obligations hereunder and under the
related Term Sheet may be enforced by the Trustee or the Servicer for such Trust.

Section 6.2.          Indemnification

(a)    The Seller (i) agrees to indemnify and hold harmless the Purchaser and the related Trust (each, an “Indemnified Party”), against any losses, claims, damages or liabilities to which such Indemnified Party may
become subject, under the Securities Act of 1933, as amended, or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement of any material fact contained in the information
provided by the Seller to the Purchaser with respect to the Seller’s origination and underwriting criteria, the regulatory status of the Seller and its affiliates (other than the Purchaser and the Trust), and the characteristics of the Mortgage Loans sold by
the Seller on the related Closing Date (such information, the “Seller’s Information”) and included in the prospectus or the prospectus supplement or other disclosure document prepared in connection with the related Sale (collectively, the
“Disclosure Documents”) and (ii) will reimburse each Indemnified Party for any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such loss, claim, damage, liability or
action.

(b)   The Purchaser (i) will indemnify and hold harmless the Seller against any losses, claims, damages or liabilities to which the Seller may become subject, under the Securities Act of 1933, as amended, or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) (x) arise out of or are based upon any untrue statement of any material fact contained in any Disclosure Document (other than an untrue statement of material fact contained in the Seller’s
Information) or (y) arise out of or are based upon the omission to state in any Disclosure Document a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading
(unless such omission also constitutes an omission to state in the Seller’s Information a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading) and
(ii) will reimburse the Seller for any legal or other expenses reasonably incurred by the Seller in connection with investigating or defending any such loss, claim, damage, liability or action. 

29

 

 

(c)    In connection with each Sale, (i) the Seller agrees to execute an agreement pursuant to which the Seller will agree to indemnify each underwriter engaged in connection with such Sale against any losses, claims, damages or
liabilities to which such underwriter may become subject, under the Securities Act of 1933, as amended, or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement of any
material fact contained in the Seller’s Information and included in any Disclosure Document, and (ii) the Purchaser agrees to make reasonable efforts to obtain indemnification satisfactory to the Seller with respect to any information provided by parties other
than the Purchaser or an affiliate of the Purchaser and included in any Disclosure Document.

ARTICLE 7.

MISCELLANEOUS PROVISIONS

Section 7.1.          Amendment

This Agreement may be amended from time to time by the Seller and the Purchaser solely by written agreement signed by the Seller and the Purchaser. If any provision of this Agreement or of a Confidential Pricing Supplement conflicts with any
provision of a Term Sheet, the provision of such Term Sheet shall control. If any provision of this Agreement conflicts with any provision of a Confidential Pricing Supplement, the provision of this Agreement shall control.

Section 7.2.          Recordation of Agreement

(a)    To the extent necessary under applicable law to protect the interests of the Purchaser, this Agreement or a memorandum thereof is subject to recordation in all appropriate public offices for real property records in all the
counties and other comparable jurisdictions in which any or all of the Mortgaged Properties are situated, and in any other appropriate public recording office or elsewhere, such recordation to be effected by the Seller at the Purchaser’s expense upon direction
of the Purchaser.

(b)   The Seller agrees to execute or cause to be executed such documents and take or cause to be taken such actions as may be necessary to effect the intent of this Agreement, including without limitation the execution and delivery of
instruments of further assurance and the execution and delivery of such other documents, and the taking of such other actions, as may be reasonably requested by the Purchaser.

30

 

 

Section 7.3.          Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without reference to the choice of law doctrine of such state (other than Section 5-1401 of the General Obligations Law).

Section 7.4.          General Interpretive Principles

For purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires:

(i)                  the terms defined in this Agreement include the plural as well as the singular, and the use of any gender herein shall be deemed to include
the other gender;

(ii)                accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles;

(iii)               references herein to “Articles,” “Sections,” “Subsections,” “Paragraphs,” and other subdivisions without
reference to a document are to designated Articles, Sections, Subsections, Paragraphs, and other subdivisions of this Agreement;

(iv)              a reference to a subsection without further reference to a Section is a reference to such subsection as contained in the same Section in which
the reference appears, and this rule shall also apply to Paragraphs and other subdivisions;

(v)                the words “herein,” “hereof,” “hereunder,” and other words of similar import refer to this Agreement as a whole and
not to any particular provision; and

(vi)              the term “include” or “including” shall mean without limitation by reason of enumeration.

Section 7.5.          Notices

All demands, notices, consents, waivers and other communications hereunder shall be in writing and shall be deemed to have been duly given if personally delivered, sent by telecopy, mailed by certified mail, return receipt requested and postage
prepaid, or delivered by a nationally recognized overnight courier, to

(i) in the case of the Seller:

Washington Mutual Mortgage Securities Corp.

75 North Fairway Drive

Vernon Hills, Illinois 60061

Attention:  Kim Jacobs, Vice President

Telephone: (847) 549-2372

Telecopy: (847) 549-2997

31

 

 

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

(ii) in the case of the Purchaser:

WaMu Asset Acceptance Corp.

1201 Third Avenue, WMT1706A

Seattle, Washington  98101

Attention:  General Counsel

Telephone: (206) 554-8838

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

Notwithstanding the foregoing, any demand, notice, consent, waiver or communication may be given by any other means agreed to by the parties.

Section 7.6.          Severability of Provisions

If any one or more of the covenants, agreements, provisions, or terms of this Agreement shall be held invalid for any reason whatsoever, then such covenants, agreements, provisions, or terms shall be deemed severable from the remaining covenants,
agreements, provisions, or terms of this Agreement and shall in no way affect the validity or enforceability of the other covenants, agreements, provisions, or terms of this Agreement or the rights of the parties hereunder.  If the invalidity of any part,
provision, representation or warranty of this Agreement shall deprive any party of the economic benefit intended to be conferred by this Agreement, the parties shall negotiate in good faith to develop a structure the economic effect of which is as nearly as possible
the same as the economic effect of this Agreement without regard to such invalidity.

Section 7.7.          Exhibits

The exhibits to this Agreement are hereby incorporated and made a part hereof and are an integral part of this Agreement.

Section 7.8.          Counterparts; Successors and Assigns

This Agreement may be executed in one or more counterparts, and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed to be an original; such counterparts, together, shall constitute one and the
same agreement.  This Agreement shall inure to the benefit of and be binding upon the Seller and the Purchaser. Notwithstanding the foregoing, (a) the Seller shall not assign its rights and obligations under this Agreement without the prior written consent of
the Purchaser, which consent shall not be unreasonably withheld or delayed, and (b) the Purchaser may not assign its rights and obligations under this Agreement except (i) as provided in Section 6.1 or (ii) with the prior written consent of the Seller, which consent
shall not be unreasonably withheld or delayed (in which case all references to the Purchaser herein shall be deemed to include such assignee).

32

 

 

Section 7.9.          Effect of Headings

The headings in this Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

Section 7.10.      Other Agreements Superseded

This Agreement supersedes all prior agreements and understandings relating to the subject matter hereof.

Section 7.11.      Intention of the Parties

It is the intention of the parties that the Purchaser is purchasing, and the Seller is selling, Mortgage Loans and not a debt instrument of the Seller or other security.  Accordingly, the parties hereto each intend to treat each of the
transactions hereunder for federal income tax purposes as a sale by the Seller, and a purchase by the Purchaser, of Mortgage Loans.  The Purchaser shall have the right to review the Mortgage Loans to determine the characteristics of the Mortgage Loans which
shall affect the federal income tax consequences of owning the Mortgage Loans, and the Seller shall cooperate with all reasonable requests made by the Purchaser in the course of such review.

Section 7.12.      Nonsolicitation

The Seller covenants and agrees that it will not take any action personally, by telephone, by mail or otherwise, to solicit the prepayment of any Mortgage Loans by the related Mortgagors, in whole or in part following the Closing Date with respect
to such Mortgage Loans.  Notwithstanding the foregoing, the Seller shall not be prohibited from:

(i)                  advertising its availability for handling refinancing of mortgage loans if the Mortgage Loans are not specifically targeted;

(ii)                promoting terms available for refinancing by sending letters or promotional material to the mortgagors of all the mortgage loans that the Seller or its
affiliates owns or services;

(iii)               promoting terms available for refinancing by sending letters or promotional material to the mortgagors of all the mortgage loans of a specific type (e.g.,
conventional fixed-rate or conventional adjustable-rate) that the Seller or its affiliates owns or services;

(iv)              promoting terms available for refinancing by sending letters or promotional material to the mortgagors of all the mortgage loans that fall within specific interest
rate ranges that the Seller or its affiliates owns or services;

33

 

 

(v)                providing payoff information or otherwise cooperating with individual Mortgagors who contact the Seller about prepaying any Mortgage Loan;

(vi)              advising individual Mortgagors who contact the Seller about prepaying any Mortgage Loan of refinancing terms or streamlined origination arrangements that are
available; or

(vii)             engaging in any action to solicit the refinancing of any Mortgage Loan to the extent such action would be permitted under the Fannie Mae Selling Guide or the Fannie Mae
Servicing Guide.

In no event shall the Seller treat mortgage loans that it holds in its own portfolio and the Mortgage Loans as separate classes of mortgages for purposes of advertising the availability of refinancing terms.

Section 7.13.      Attorneys’ Fees

If either party retains an attorney to enforce any of the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees from the other party, including, without limitation, fees incurred in arbitration and
in trial and appellate courts, fees incurred without suit, and all arbitration, court and accounting costs.

Section 7.14.      Security Interest

(a)    The parties hereto intend that each transfer of a Mortgage Loan pursuant to this Agreement and the applicable Term Sheet constitute a sale by the Seller to the Purchaser of such Mortgage Loan, including for accounting
purposes, and not a secured borrowing.  It is, further, not the intention of the parties that any such transfer be deemed the grant of a security interest in any Mortgage Loan by the Seller to the Purchaser to secure a debt or other obligation of the Seller.
However, in the event that, notwithstanding the intent of the parties, any Mortgage Loan is held to be the property of the Seller, or if for any other reason this Agreement is held or deemed to create a security interest in any Mortgage Loan, then (a) this Agreement
shall constitute a security agreement; and (b) the transfer provided for in this Agreement and the applicable Term Sheet shall be deemed to be a grant by the Seller to the Purchaser of, and the Seller hereby grants to the Purchaser, to secure all of the
Seller’s obligations hereunder, a security interest in all of the Seller’s right, title, and interest, whether now owned or hereafter acquired, in, to and under: (i) the Mortgage Loans listed on the Mortgage Loan Schedule to each Term Sheet; (ii) all
accounts, chattel paper, deposit accounts, documents, general intangibles, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, and other minerals, consisting of, arising from, or relating to, any of the foregoing;
and (iii) all proceeds of the foregoing.  The Purchaser shall have all of the rights of a secured party under the applicable Uniform Commercial Code.

(b)   The Seller shall take or cause to be taken such actions and execute such documents, including without limitation the filing of any financing statements, continuation statements, and amendments to financing statements, as are
necessary to perfect the Purchaser’s interests in each Mortgage Loan.  The Seller shall file such financing statements, continuation statements, and amendments on a timely basis.

34

 

 

(c)    No later than ten (10) days following each Closing Date, the Seller shall file in the applicable jurisdictions such UCC financing statements covering the Mortgage Loans sold by the Seller on such Closing Date as are necessary
to perfect the Purchaser’s interests in such Mortgage Loans.

Section 7.15.      Covenant Not to Place Purchaser or Trust Into Bankruptcy

The Seller covenants that it shall not, until at least one year and one day after all securities issued by any Trust to which the Purchaser has transferred Mortgage Loans have been paid in full, take any action to file an involuntary bankruptcy
petition against the Purchaser or any Trust.

 

 

 

[Signature pages follow]

35

 

TO WITNESS THIS, the Seller and the Purchaser have caused their names to be signed to this Mortgage Loan Purchase and Sale Agreement by their duly authorized respective officers as of the date first above
written.

 

	 	WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.

 a Delaware corporation
By:    /s/ Michael Parker

 Name:  Michael Parker

 Title:  Senior Vice President

 

	 	 
	 	WaMu  ASSET ACCEPTANCE CORP.

 a Delaware corporation
 

By:    /s/ David Beck

Name:  David Beck

Title:  President

 

 

 

STATE OF WASHINGTON             )

            
                                                
) ss.

COUNTY OF KING                            )

            This instrument was acknowledged before me on April 18, 2006, by Michael Parker as Senior Vice President of Washington Mutual Mortgage Securities Corp.

 

                                                                       
/s/ Jessica Jaeger

                                                                       
[Print Name] Jessica Jaeger

                                                                       
Washington, residing at Seattle, King County

                                                                       
My commission expires February 17, 2007

 

 

STATE OF NEW YORK        )

                                                  
) ss.

COUNTY OF NEW YORK     )

            This instrument was acknowledged before me on April 20, 2006, by David Beck as President  of WaMu Asset Acceptance Corp.

                                                                       
/s/ Myra Sanoguet

                                                                       
[Print Name] Myra Sanoguet

                                                                       
residing at New City NY, Rockland County

                                                                       
My commission expires 5/13/07

 

 

EXHIBIT A

CONTENTS OF MORTGAGE FILE

 

With respect to each Mortgage Loan, the Mortgage File shall consist of the following documents or instruments:

(X) with respect to each Mortgage Loan that is not a Cooperative Loan:

(i)         the original Mortgage Note, endorsed in blank or in the following form:  “Pay to the order of [Name of the Trustee], as Trustee under the applicable agreement,
without recourse,” with all prior and intervening endorsements showing a complete chain of endorsement from the originator to the Person so endorsing to the Trustee or (in the case of not more than 1.00% of the Mortgage Loans, by aggregate principal balance as
of the related Cut‐off Date) a copy of such original Mortgage Note with an accompanying lost note affidavit executed by the Seller;

(ii)        the original Mortgage, noting the presence of the MIN of the Mortgage Loan and language indicating that the Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM loan, with evidence of recording
thereon, and a copy, certified by the appropriate recording office, of the recorded power of attorney, if the Mortgage was executed pursuant to a power of attorney, with evidence of recording thereon;

(iii)       unless the Mortgage Loan is registered on the MERS® System, an original Assignment in blank;

(iv)       the original recorded Assignment or Assignments showing a complete chain of assignment from the originator to the Person assigning the Mortgage to the Trustee or in blank (or to MERS, if the Mortgage Loan is
registered on the MERS® System and noting the presence of the MIN) as contemplated by the immediately preceding clause (iii);

(v)        the original or copies of each assumption, modification, written assurance or substitution agreement, if any; and

(vi)       the original or a copy of lender’s title insurance policy, together with all endorsements or riders issued with or subsequent to the issuance of such policy, insuring the priority of the Mortgage as a
first or second lien on the Mortgaged Property represented therein as a fee interest vested in the Mortgagor, or in the event such title policy is unavailable, a written commitment or uniform binder or preliminary report of title issued by the title insurance or
escrow company.

and (Y) with respect to each Cooperative Loan:

(i)                  the original Mortgage Note (1) endorsed (A) in blank, without recourse, (B) to the applicable Trustee, as Trustee,
without recourse, (C) to the applicable Trust, without recourse, (D) to the applicable custodian, without recourse, (E) to the Seller, or (F) if such Mortgage Loan has been transferred to the Seller by Washington Mutual Bank or Washington Mutual Bank fsb, by
Washington Mutual Bank or Washington Mutual Bank fsb, as applicable, and all intervening endorsements evidencing a complete chain of endorsements from the originator to the endorser last endorsing the Mortgage Note, or (2) if such Mortgage Loan has been transferred
to the Seller by Washington Mutual Bank or Washington Mutual Bank fsb, naming Washington Mutual Bank or Washington Mutual Bank fsb, a applicable, as payee, or, in the event of any Destroyed Mortgage Note, a copy or a duplicate original of the Mortgage Note, together
with an original lost note affidavit from the originator of the Cooperative Loan, Washington Mutual Bank, Washington Mutual Bank fsb, or the Seller, as applicable, stating that the original Mortgage Note was lost, misplaced or destroyed, together with a copy of the
Mortgage Note;

A-1

 

(ii)                A counterpart of the Cooperative Lease and the Assignment of Proprietary Lease;

(iii)               The Cooperative Stock Certificate, together with an undated stock power or other similar instrument executed in blank;

(iv)              The Recognition Agreement;

(v)                The Security Agreement;

(vi)              Copies of the original UCC financing statement, and any continuation statements or amendments thereof, each with evidence of recording thereof,
perfecting the security interest granted under the Security Agreement and the Assignment of Proprietary Lease;

(vii)             Unless the Cooperative Loan has been transferred to the Seller by Washington Mutual Bank or Washington Mutual Bank fsb, and Washington Mutual Bank or
Washington Mutual Bank fsb, as applicable, was the originator of the Cooperative Loan, copies of the filed UCC assignments or amendments of the UCC financing statements described in clause (vi) above showing an unbroken chain of assignments from the originator to the
applicable Trust, the applicable Trustee, the applicable custodian, the Seller, or if the Cooperative Loan has been transferred to the Seller by Washington Mutual Bank or Washington Mutual Bank fsb, to Washington Mutual Bank or Washington Mutual Bank fsb, as
applicable, each with evidence of recording thereof;

(viii)           Unless the Cooperative Loan has been transferred to the Seller by Washington Mutual Bank or Washington Mutual Bank fsb, and Washington Mutual Bank or Washington
Mutual Bank fsb, as applicable, was the originator of the Cooperative Loan, executed assignments of the interest of the originator in the Security Agreement, the Assignment of Proprietary Lease and the Recognition Agreement, showing an unbroken chain of assignments
from the originator to the applicable Trust, the applicable Trustee, the applicable custodian, the Seller, or if the Cooperative Loan has been transferred to the Seller by Washington Mutual Bank or Washington Mutual Bank fsb, to Washington Mutual Bank or Washington
Mutual Bank fsb, as applicable; and

A-2

 

 

(ix)              For any Cooperative Loan that has been modified or amended, the original instrument or instruments effecting such modification or
amendment.

 

A-3

 

EXHIBIT B

TERM SHEET

 

This Term Sheet (this “Term Sheet”) is dated [__________], by Washington Mutual Mortgage Securities Corp., a Delaware corporation, as seller (the “Seller”), and WaMu Asset Acceptance Corp.,
a Delaware corporation, as purchaser (the “Purchaser”). 

This Term Sheet is entered into pursuant to the terms and conditions of the Mortgage Loan Purchase and Sale Agreement (the “MLPA”), dated as of April 20, 2006, between the Sellerand the Purchaser.  All capitalized terms shall
have the meanings ascribed to them in the MLPA, unless otherwise defined herein or in the Confidential Pricing Supplement. In the event of any inconsistency between this Term Sheet and either the MLPA or the Confidential Pricing Supplement, the terms of this Term
Sheet shall govern; and in the event of any inconsistency between the MLPA and the Confidential Pricing Supplement, the terms of the MLPA shall govern.

The Purchaser hereby purchases from the Seller, and the Seller hereby sells to the Purchaser, all of the Seller’s right, title and interest in and to the mortgage loans described on the Mortgage Loan Schedule attached hereto as
Schedule I (the “Mortgage Loans”) in accordance with the terms of the MLPA, as supplemented and amended by this Term Sheet and the Confidential Pricing Supplement.

1.                  Definitions

For purposes of this Term Sheet, the following terms shall have the following meanings:

Aggregate Cut-off Date Principal

Balance of the Mortgage Loans:                                                                                   

Certificates:     
                                                    
Washington Mutual Asset-Backed Certificates, [INSERT Series name]

Closing Date: 
                                                   
  _______________________________

Custodian:       
                                                    
_______________________________

Cut-off Date: 
                                                      
_______________________________

High Cost/Covered Loan:    A High Cost Loan or a Covered Loan, as such terms are defined in the Standard & Poor's LEVELS® Glossary in effect on the Closing Date, which is Version [___], applicable
portions of which are attached hereto as Schedule II

B-1

 

 

Mortgage Loan Type:                         
             _______________________________

Pooling and Servicing Agreement:    The Pooling and Servicing Agreement, dated as of [__________], among the Purchaser, Washington Mutual Bank, as Servicer, [__________] as Trustee, and [__________], as
Delaware Trustee

Servicing Fee Rate:     [___% for each Mortgage Loan] [A range between ___% and ___%, as set forth for each Mortgage Loan in the Mortgage Loan Schedule, with a weighted average of ___%]

Weighted Average Net Rate of the

Mortgage Loans:                     
                       _______________________________

Additional Consideration:   Delivery of the Class R-CX Certificates, the Class R-PX Certificates and the Class R-CX Certificates to Washington Mutual Bank upon the order of the Seller and delivery of the
Class C Certificates and the Class P Certificates to Seafair Securities Holding Corp. 

 

2.  Amendments to MLPA

a.  Notwithstanding anything to the contrary set forth in the MLPA, with respect to the Mortgage Loans, the representations and warranties set forth in Section 3.1 and Section 3.2 of the MLPA shall be subject to the exceptions, if any, set
forth on Schedule III to this Term Sheet.

b.  Each of the following representations and warranties with respect to the Mortgage Loans set forth in the indicated clauses of Section 3.1 or Section 3.2 of the MLPA is hereby deleted in its entirety:

            [________] [No deletions.]

c.  The MLPA is hereby amended to add the following additional representations and warranties with respect to the Mortgage Loans:

            [________] [No additional representations and warranties.]

d.  The following additional amendments are hereby made to the MLPA with respect to the Mortgage Loans:

B-2

 

 

            [________] [No additional amendments.]

e.  Except as modified here, the MLPA remains in full force and effect.

 

 

[signatures follow]

B-3

TO WITNESS THIS, the parties have caused their names to be signed by their respective duly authorized officers as of the date first written above.

 

 

	 	WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.

 a Delaware corporation
By:    

 Name:  

 Title:  

 

	 	 
	 	WaMu ASSET ACCEPTANCE CORP.

 a Delaware corporation
 

By:   

Name:  

Title:  

	 	 
	 	 
	 	
 

 

 

 

Acknowledgement of Trader:

 This Term Sheet accurately reflects the terms and conditions

of the sale of the mortgage loans from:

______    WMMSC

to the Purchaser.

 

 

 

[Signature page to Term Sheet for Washington Mutual Mortgage Securities Corp. for [INSERT Series Name] ]

SCHEDULE I

A.        MORTGAGE LOAN SCHEDULE OF WASHINGTON MUTUAL MORTGAGE SECURITIES CORP. *

 

B.        PREPAYMENT CHARGE SCHEDULE OF WASHINGTON MUTUAL MORTGAGE SECURITIES CORP. *

 

 

* To be attached as hard copy or as diskette in “read-only” format.

 

 

SCHEDULE II

ANTI-PREDATORY LENDING CATEGORIZATION

 

[INSERT applicable portions of the Standard & Poor's Levels® Glossary in effect on the Closing Date, similar to the following:]

I.              High-Cost Loan Categorization

                                                                                                        
                             

	
State/Jurisdiction

	
Name of Anti-Predatory Lending

 Law/Effective Date

	
Category under Applicable

 Anti-Predatory Lending Law

	
Arkansas

	
Arkansas Home Loan Protection Act, Ark. Code Ann. §§ 23-53-101 et seq.

Effective July 16, 2003

	
High Cost Home Loan

	
Cleveland Heights, OH

	
Ordinance No. 72-2003 (PSH), Mun. Code §§ 757.01 et seq.

Effective June 2, 2003

	
Covered Loan

	
Colorado

	
Consumer Equity Protection, Colo. Stat. Ann. §§ 5-3.5-101 et seq.

Effective for covered loans offered or entered into on or after January 1, 2003. Other provisions of the Act took effect on June 7, 2002

	
Covered Loan

	
Connecticut

	
Connecticut Abusive Home Loan Lending Practices Act, Conn. Gen. Stat. §§ 36a-746 et seq.

Effective October 1, 2001

	
High Cost Home Loan

	
District of Columbia

	
Home Loan Protection Act, D.C. Code §§ 26-1151.01 et seq.

Effective for loans closed on or after January 28, 2003

	
Covered Loan

	
Florida

	
Fair Lending Act, Fla. Stat. Ann. §§ 494.0078 et seq.

Effective October 2, 2002

	
High Cost Home Loan

	
Georgia (Oct 1, 2002 – Mar 6, 2003)

	
Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

Effective October 1, 2002 – March 6, 2003

	
High Cost Home Loan

	
Georgia as amended (Mar 7, 2003 – current)

	
Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

Effective for loans closed on or after March 7, 2003

	
High Cost Home Loan

	
HOEPA Section 32

	
Home Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, 12 C.F.R. §§ 226.32 and 226.34

Effective October 1, 1995, amendments October 1, 2002

	
High Cost Loan

	
Indiana

	
Indiana Home Loan Practices Act, Ind. Code Ann. §§ 24-9-1-1 et seq.

Effective for loans originated on or after January 1, 2005.

	
High Cost Home Loan

	
Illinois

	
High Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5 et seq.

Effective January 1, 2004 (prior to this date, regulations under Residential Mortgage License Act effective from May 14, 2001)

	
High Risk Home Loan

	
Kansas

	
Consumer Credit Code, Kan. Stat. Ann. §§ 16a-1-101 et seq.

Sections 16a-1-301 and 16a-3-207 became effective April 14, 1999; Section 16a-3-308a became effective July 1, 1999

	
High Loan to Value Consumer Loan (id. § 16a-3-207) and;

High APR Consumer Loan (id. § 16a-3-308a)

 

	
Kentucky

	
2003 KY H.B. 287 – High Cost Home Loan Act, Ky. Rev. Stat. §§ 360.100 et seq.

Effective June 24, 2003

	
High Cost Home Loan

	
Maine

	
Truth in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 et seq.

Effective September 29, 1995 and as amended from time to time

	
High Rate High Fee Mortgage

	
Massachusetts

	
Part 40 and Part 32, 209 C.M.R. §§ 32.00 et seq. and 209 C.M.R. §§ 40.01 et seq.

Effective March 22, 2001 and amended from time to time

	
High Cost Home Loan

	
Nevada

	
Assembly Bill No. 284, Nev. Rev. Stat. §§ 598D.010 et seq.

Effective October 1, 2003

	
Home Loan

	
New Jersey

	
New Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22 et seq.

Effective for loans closed on or after November 27, 2003

	
High Cost Home Loan

	
New Mexico

	
Home Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et seq.

Effective as of January 1, 2004; Revised as of February 26, 2004

	
High Cost Home Loan

	
New York

	
N.Y. Banking Law Article 6-l

Effective for applications made on or after April 1, 2003

	
High Cost Home Loan

	
North Carolina

	
Restrictions and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E et seq.

Effective July 1, 2000; amended October 1, 2003 (adding open-end lines of credit)

	
High Cost Home Loan

	
Ohio

	
H.B. 386 (codified in various sections of the Ohio Code), Ohio Rev. Code Ann. §§ 1349.25 et seq.

Effective May 24, 2002

	
Covered Loan

	
Oklahoma

	
Consumer Credit Code (codified in various sections of Title 14A)

Effective July 1, 2000; amended effective January 1, 2004

	
Subsection 10 Mortgage

	
South Carolina

	
South Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann. §§ 37-23-10 et seq.

Effective for loans taken on or after January 1, 2004

	
High Cost Home Loan

	
West Virginia

	
West Virginia Residential Mortgage Lender, Broker and Servicer Act, W. Va. Code Ann. §§ 31-17-1 et seq.

Effective June 5, 2002

	
West Virginia Mortgage Loan Act Loan

 

II.            Covered Loan Categorization

                                                                               
                    

	
State/Jurisdiction

	
Name of Anti-Predatory Lending

 Law/Effective Date

	
Category under Applicable

 Anti-Predatory Lending Law

	
Georgia (Oct 1, 2002 – Mar 6, 2003)

	
Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

Effective October 1, 2002 – March 6, 2003

	
Covered Loan

	
New Jersey

	
New Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22 et seq.

Effective November 27, 2003 – July 5, 2004

	
Covered Home Loan

 

 

SCHEDULE III

EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES OF

THE SELLER CONCERNING THE MORTGAGE LOANS

The representations and warranties made, pursuant to Section 3.1 of the MLPA, by Washington Mutual Mortgage Securities Corp. with respect to the Mortgage Loans to be sold by it on the Closing Date are subject to the following
exceptions:

 

[None.]

 

[INSERT applicable exceptions]

 

1.         Section 3.1(xxxv) – As of the Cut-off Date, ___ Mortgage Loans with the following loan numbers were delinquent between __ and __ days:

Loan Numbers:  ____.

 

2.         Section 3.1(xxxv) – As of the Cut-off Date, ___ Mortgage Loans with the following loan numbers were delinquent more than 30 days more than twice in the preceding 12 months
between:

Loan Numbers:  ____.

 

3.         Section 3.1(xxxv) – As of the Cut-off Date, ___ Mortgage Loans with the following loan numbers have experienced a delinquency of 60 or more days since origination
thereof:

Loan Numbers:  ____.

 

4.         Section 3.1(____) – [other exceptions]:

Loan Numbers:  ____.

 

EXHIBIT C

CONFIDENTIAL PRICING SUPPLEMENT

This Confidential Pricing Supplement (this “Confidential Pricing Supplement”) is dated _____, by Washington Mutual Mortgage Securities Corp., a Delaware corporation, as seller (the “Seller”), and WaMu
Asset Acceptance Corp., a Delaware corporation, as purchaser (the “Purchaser”).

This Confidential Pricing Supplement is entered into pursuant to the terms and conditions of the Mortgage Loan Purchase and Sale Agreement (the “MLPA”), dated as of April 20, 2006, between the Seller and the Purchaser, as
supplemented and amended by the Term Sheet (the “Term Sheet”), dated the date hereof, between the Seller and the Purchaser and relating to [INSERT Series Name].  All capitalized terms shall have the meanings ascribed to them in the
MLPA, unless otherwise defined herein or in the Term Sheet. In the event of any inconsistency between the MLPA and this Confidential Pricing Supplement, the terms of the MLPA shall govern; and in the event of any inconsistency between the Term Sheet and either this
Confidential Pricing Supplement or the MLPA, the terms of the Term Sheet shall govern.

For purposes of this Confidential Pricing Supplement and the sale by the Seller to the Purchaser of the Mortgage Loans described on the Mortgage Loan Schedule attached as Schedule I to the Term Sheet, the Purchase Price Percentage shall
be:  ______________.

 

 

[signatures follow]

 

TO WITNESS THIS, the parties have caused their names to be signed by their respective duly authorized officers as of the date first written above.

 

	 	WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.

 a Delaware corporation
By:    

 Name:  

 Title:  

 

	 	 
	 	WaMu ASSET ACCEPTANCE CORP.

 a Delaware corporation
 

By:   

Name:  

Title:  

	 	 
	 	 
	 	
 

 

 

 

 

Acknowledgement of Trader:

 This Confidential Pricing Supplement accurately reflects

the terms and conditions of the sale of the mortgage

loans from:

 ______    WMMSC

to the Purchaser.

 

 

 

 

 

 

[Signature page to Confidential Pricing Supplement for Washington Mutual Mortgage Securities Corp. for [INSERT Series Name]]

 

EXHIBITS

Exhibit A                      CONTENTS OF MORTGAGE FILE

Exhibit B                      TERM SHEET

Exhibit C                      CONFIDENTIAL PRICING SUPPLEMENTClick here for printer-friendly pdf version of this document with page breaks as indicated
in the Table of Contents

If above link does not activate, you will find the duplicate printer-friendly pdf
version of this document attached to this filing submission with the SEC.

 

EXHIBIT 4.1

 

 

WaMu ASSET ACCEPTANCE CORP.,

as Company

and

WASHINGTON MUTUAL BANK,

as Servicer

and

LASALLE BANK NATIONAL ASSOCIATION,

as Trustee

and

CHRISTIANA BANK & TRUST COMPANY,

as Delaware Trustee

POOLING AND SERVICING AGREEMENT

$378,489,000

Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust

WaMu Asset Acceptance Corp.

Washington Mutual Asset-Backed Certificates

WMABS Series 2006-HE1

Cut-Off Date: April 1, 2006

 

TABLE OF CONTENTS

 

	
 

	
 

	
Page

	
ARTICLE I

	
DEFINITIONS

	
17

	
Section 1.01

	
Defined Terms.

	
17

	
 

	
Account

	
17

	
 

	
Accrual Period

	
17

	
 

	
Additional Termination Event

	
17

	
 

	
Adjustable Rate Mortgage Loan

	
17

	
 

	
Adjusted Net Maximum Mortgage Rate

	
17

	
 

	
Adjusted Net Mortgage Rate

	
17

	
 

	
Adjustment Date

	
17

	
 

	
Advance

	
18

	
 

	
Affiliate

	
18

	
 

	
Agreement

	
18

	
 

	
Appraised Value

	
18

	
 

	
Assigned Prepayment Charges

	
18

	
 

	
Assignment

	
18

	
 

	
Authenticating Agent

	
18

	
 

	
Authorized Denomination

	
18

	
 

	
Bankruptcy Code

	
18

	
 

	
Bankruptcy Loss

	
18

	
 

	
Beneficial Holder

	
18

	
 

	
Book-Entry Certificates

	
19

	
 

	
Business Day

	
19

	
 

	
Calculation Period

	
19

	
 

	
Certificate

	
19

	
 

	
Certificate Interest Rate

	
19

	
 

	
Certificate Margin

	
19

	
 

	
Certificate of Trust

	
19

	
 

	
Certificate Principal Balance

	
19

	
 

	
Certificate Register and Certificate Registrar

	
19

	
 

	
Certificateholder

	
19

	
 

	
Holder

	
19

	
 

	
Certification

	
20

	
 

	
Class

	
20

	
 

	
Class I-A Certificate

	
20

	
 

	
Class II‐A‐1 Certificate

	
20

	
 

	
Class II‐A‐2 Certificate

	
20

	
 

	
Class II‐A‐3 Certificate

	
20

	
 

	
Class II‐A‐4 Certificate

	
20

	
 

	
Class A Certificates

	
20

	
 

	
Class A Principal Distribution Amount

	
20

	
 

	
Class C Certificate

	
20

	
 

	
Class C NIM Payment Amount

	
21

	
 

	
Class C Shortfall

	
21

	
 

	
Class M‐1 Certificate

	
21

	
 

	
Class M‐1 Principal Distribution Amount

	
21

	
 

	
Class M-2 Certificate

	
21

	
 

	
Class M-2 Principal Distribution Amount

	
21

	
 

	
Class M-3 Certificate

	
22

	
 

	
Class M-3 Principal Distribution Amount

	
22

	
 

	
Class M‐4 Certificate

	
22

	
 

	
Class M‐4 Principal Distribution Amount

	
22

	
 

	
Class M‐5 Certificate

	
23

	
 

	
Class M‐5 Principal Distribution Amount

	
23

	
 

	
Class M‐6 Certificate

	
23

	
 

	
Class M‐6 Principal Distribution Amount

	
24

	
 

	
Class M‐7 Certificate

	
24

	
 

	
Class M‐7 Principal Distribution Amount

	
24

	
 

	
Class M-8 Certificate

	
25

	
 

	
Class M-8 Principal Distribution Amount

	
25

	
 

	
Class M-9 Certificate

	
26

	
 

	
Class M-9 Principal Distribution Amount

	
26

	
 

	
Class M‐10 Certificate

	
26

	
 

	
Class M‐10 Principal Distribution Amount

	
26

	
 

	
Class M‐11 Certificate

	
27

	
 

	
Class M‐11 Principal Distribution Amount

	
27

	
 

	
Class P Certificate

	
28

	
 

	
Class P Interest

	
28

	
 

	
Class Principal Balance

	
28

	
 

	
Class R Certificate

	
29

	
 

	
Class R‐1 Interest

	
29

	
 

	
Class R‐2 Interest

	
29

	
 

	
Class R‐3 Interest

	
29

	
 

	
Class R‐4 Interest

	
29

	
 

	
Class R‐5 Interest

	
29

	
 

	
Class R‐6 Interest

	
29

	
 

	
Class R‐CX Certificate

	
29

	
 

	
Class R‐PX Certificate

	
29

	
 

	
Class L1-Y-X Regular Interest

	
29

	
 

	
Class L1-Y-A Regular Interests

	
29

	
 

	
Class L1-Y-B Regular Interests

	
29

	
 

	
Class L1-Z-X Regular Interest

	
29

	
 

	
Class L1-Z-A Regular Interests

	
29

	
 

	
Class L1-Z-B Regular Interests

	
30

	
 

	
Class L1-P Regular Interest

	
30

	
 

	
Class L2-1-A1 Regular Interest

	
30

	
 

	
Class L2-2-A1 Regular Interest

	
30

	
 

	
Class L2-2-A2 Regular Interest

	
30

	
 

	
Class L2-2-A3 Regular Interest

	
30

	
 

	
Class L2-2-A4 Regular Interest

	
30

	
 

	
Class L2-2-M1 Regular Interest

	
30

	
 

	
Class L2-2-M2 Regular Interest

	
30

	
 

	
Class L2-2-M3 Regular Interest

	
30

	
 

	
Class L2-2-M4 Regular Interest

	
30

	
 

	
Class L2-2-M5 Regular Interest

	
30

	
 

	
Class L2-2-M6 Regular Interest

	
31

	
 

	
Class L2-2-M7 Regular Interest

	
31

	
 

	
Class L2-2-M8 Regular Interest

	
31

	
 

	
Class L2-2-M9 Regular Interest

	
31

	
 

	
Class L2-2-M10 Regular Interest

	
31

	
 

	
Class L2-2-M11 Regular Interest

	
31

	
 

	
Class L2-1-GP Regular Interest

	
31

	
 

	
Class L2-1-SB Regular Interest

	
31

	
 

	
Class L2-2-GP Regular Interest

	
31

	
 

	
Class L2-2-SB Regular Interest

	
31

	
 

	
Class L2-SW Regular Interest

	
31

	
 

	
Class L2-XX Regular Interest

	
31

	
 

	
Class L2-YY Regular Interest

	
32

	
 

	
Class L2-ZZ Regular Interest

	
32

	
 

	
Class L3-C Regular Interest

	
32

	
 

	
Class L3-SW Regular Interest

	
32

	
 

	
Class L6-SW Regular Interest

	
32

	
 

	
Clean-up Call Percentage

	
32

	
 

	
Clearing Agency

	
32

	
 

	
Close of Business

	
32

	
 

	
Closing Date

	
32

	
 

	
Closing Date Mortgage Loans

	
32

	
 

	
Code

	
32

	
 

	
Collection Account

	
32

	
 

	
Commission

	
32

	
 

	
Company

	
32

	
 

	
Compensating Interest

	
32

	
 

	
Corporate Trust Office

	
32

	
 

	
Corporation

	
33

	
 

	
Corresponding Certificates

	
33

	
 

	
Counterparty Payment

	
33

	
 

	
Credit Enhancement Percentage

	
33

	
 

	
Cumulative Loss Trigger Event

	
34

	
 

	
Custodial Agreement

	
34

	
 

	
Custodian

	
34

	
 

	
Cut‐off Date

	
34

	
 

	
Cut‐off Date Aggregate Principal Balance

	
34

	
 

	
Cut‐off Date Principal Balance

	
34

	
 

	
Debt Service Reduction

	
34

	
 

	
Deficient Valuation

	
34

	
 

	
Definitive Certificates

	
35

	
 

	
Delaware Trustee

	
35

	
 

	
Deleted Mortgage Loan

	
35

	
 

	
Delinquency Percentage

	
35

	
 

	
Delinquency Trigger Event

	
35

	
 

	
Delinquent

	
35

	
 

	
Depositary Agreement

	
35

	
 

	
Determination Date

	
35

	
 

	
Directly Operate

	
35

	
 

	
Disqualified Organization

	
36

	
 

	
Distribution Account

	
36

	
 

	
Distribution Date

	
36

	
 

	
DTC

	
36

	
 

	
DTC Participant

	
36

	
 

	
Due Date

	
36

	
 

	
Due Period

	
36

	
 

	
Early Termination Date

	
36

	
 

	
Eligible Institution

	
36

	
 

	
Eligible Investments

	
37

	
 

	
ERISA

	
38

	
 

	
Escrow Payments

	
38

	
 

	
Event of Default

	
38

	
 

	
Exchange Act

	
38

	
 

	
Extra Principal Distribution Amount

	
38

	
 

	
Extraordinary Trust Fund Expense

	
38

	
 

	
Fannie Mae

	
38

	
 

	
FDIC

	
38

	
 

	
Final Recovery Determination

	
38

	
 

	
Fitch

	
38

	
 

	
Fixed Rate Mortgage Loan

	
38

	
 

	
Formula Rate

	
39

	
 

	
Freddie Mac

	
39

	
 

	
Gross Margin

	
39

	
 

	
Gross Subsequent Recoveries

	
39

	
 

	
Group I Closing Date Mortgage Loans

	
39

	
 

	
Group I Interest Remittance Amount

	
39

	
 

	
Group I Mortgage Loans

	
39

	
 

	
Group I Net Swap Payment

	
39

	
 

	
Group I Principal Allocation Percentage

	
39

	
 

	
Group I Principal Distribution Amount

	
39

	
 

	
Group I Principal Remittance Amount

	
39

	
 

	
Group I Senior Certificates

	
40

	
 

	
Group I Senior Principal Distribution Amount

	
40

	
 

	
Group I Swap Payment

	
40

	
 

	
Group I Swap Percentage

	
40

	
 

	
Group I Swap Termination Payment

	
40

	
 

	
Group II Closing Date Mortgage Loans

	
40

	
 

	
Group II Interest Remittance Amount

	
41

	
 

	
Group II Mortgage Loans

	
41

	
 

	
Group II Net Swap Payment

	
41

	
 

	
Group II Principal Allocation Percentage

	
41

	
 

	
Group II Principal Distribution Amount

	
41

	
 

	
Group II Principal Remittance Amount

	
41

	
 

	
Group II Senior Certificates

	
41

	
 

	
Group II Senior Principal Distribution Amount

	
41

	
 

	
Group II Swap Payment

	
42

	
 

	
Group II Swap Percentage

	
42

	
 

	
Group II Swap Termination Payment

	
42

	
 

	
Indenture

	
42

	
 

	
Independent

	
42

	
 

	
Independent Contractor

	
42

	
 

	
Index

	
43

	
 

	
Initial Certificate Principal Balance

	
43

	
 

	
Initial Notional Amount

	
43

	
 

	
Insurance Proceeds

	
43

	
 

	
Insured NIM Notes

	
43

	
 

	
Interest Determination Date

	
43

	
 

	
Interest Distribution Amount

	
43

	
 

	
Interest Remittance Amount

	
43

	
 

	
Late Collections

	
43

	
 

	
LIBOR

	
44

	
 

	
LIBOR Business Day

	
44

	
 

	
Liquidated Mortgage Loan

	
44

	
 

	
Liquidation Event

	
44

	
 

	
Liquidation Proceeds

	
44

	
 

	
Loan Group

	
45

	
 

	
Loan Group I

	
45

	
 

	
Loan Group II

	
45

	
 

	
Loan‐to‐Value Ratio

	
45

	
 

	
Lost Note Affidavit

	
45

	
 

	
Maximum Cap Rate

	
45

	
 

	
Maximum ZZ Uncertificated Accrued Interest Deferral Amount

	
46

	
 

	
Maximum Mortgage Rate

	
46

	
 

	
MERS

	
46

	
 

	
MERS Loan

	
47

	
 

	
MERS® System

	
47

	
 

	
Mezzanine Certificates

	
47

	
 

	
MIN

	
47

	
 

	
Minimum Mortgage Rate

	
47

	
 

	
MOM Loan

	
47

	
 

	
Monthly Interest Distributable Amount

	
47

	
 

	
Monthly Payment

	
47

	
 

	
Moody’s

	
47

	
 

	
Mortgage

	
47

	
 

	
Mortgage File

	
47

	
 

	
Mortgage Loan

	
48

	
 

	
Mortgage Loan Purchase Agreement

	
48

	
 

	
Mortgage Loan Schedule

	
48

	
 

	
Mortgage Note

	
50

	
 

	
Mortgage Pool

	
50

	
 

	
Mortgage Pool Assets

	
50

	
 

	
Mortgage Rate

	
51

	
 

	
Mortgaged Property

	
51

	
 

	
Mortgagor

	
51

	
 

	
Net Counterparty Payment

	
51

	
 

	
Net Liquidation Proceeds

	
51

	
 

	
Net Monthly Excess Cashflow

	
51

	
 

	
Net Mortgage Rate

	
52

	
 

	
Net Prepayment Interest Shortfall

	
52

	
 

	
Net Swap Payment

	
52

	
 

	
Net WAC Rate

	
52

	
 

	
Net WAC Rate Carryover Amount

	
53

	
 

	
New Lease

	
53

	
 

	
NIM Notes

	
53

	
 

	
NIMS Insurer

	
53

	
 

	
NIMS Insurer Default

	
53

	
 

	
NIMS Issuer

	
53

	
 

	
Nonrecoverable Advance

	
53

	
 

	
Notice Addresses

	
54

	
 

	
Notional Amount

	
54

	
 

	
OTS

	
54

	
 

	
Officers’ Certificate

	
54

	
 

	
Opinion of Counsel

	
54

	
 

	
Optional Termination Date

	
54

	
 

	
Original Class Certificate Principal Balance

	
55

	
 

	
Original Class Notional Amount

	
55

	
 

	
Original Trust Agreement

	
55

	
 

	
Origination Value

	
55

	
 

	
Other NIM Notes

	
55

	
 

	
Overcollateralization Deficiency Amount

	
55

	
 

	
Overcollateralization Floor

	
55

	
 

	
Overcollateralization Target Amount

	
55

	
 

	
Overcollateralized Amount

	
55

	
 

	
Ownership Interest

	
56

	
 

	
Pass-Through Entity

	
56

	
 

	
Pass-Through Rate

	
56

	
 

	
Paying Agent

	
56

	
 

	
Payoff

	
56

	
 

	
Percentage Interest

	
56

	
 

	
Periodic Rate Cap

	
56

	
 

	
Permitted Transferee

	
56

	
 

	
Person

	
57

	
 

	
Plan

	
57

	
 

	
Preference Claim

	
57

	
 

	
Prepayment Charge

	
57

	
 

	
Prepayment Charge Schedule

	
57

	
 

	
Prepayment Interest Excess

	
58

	
 

	
Prepayment Interest Shortfall

	
58

	
 

	
Prepayment Period

	
58

	
 

	
Prime Rate

	
58

	
 

	
Principal Balance

	
58

	
 

	
Principal Distribution Amount

	
59

	
 

	
Principal Prepayment

	
59

	
 

	
Principal Remittance Amount

	
59

	
 

	
Purchase Price

	
59

	
 

	
Qualified Substitute Mortgage Loan

	
59

	
 

	
Rate Change Date

	
59

	
 

	
Rating Agency or Rating Agencies

	
60

	
 

	
Realized Loss

	
60

	
 

	
Record Date

	
64

	
 

	
Recording Documents

	
64

	
 

	
Reference Banks

	
64

	
 

	
Refinanced Mortgage Loan

	
64

	
 

	
Regular Certificates

	
65

	
 

	
Regular Interest

	
65

	
 

	
Regulation AB

	
65

	
 

	
Relief Act

	
65

	
 

	
Relief Act Interest Shortfall

	
65

	
 

	
Remaining Principal Distribution Amount

	
65

	
 

	
REMIC I

	
65

	
 

	
REMIC I Available Distribution Amount

	
65

	
 

	
REMIC I Distribution Amount

	
66

	
 

	
REMIC 1 Group I Regular Interests

	
68

	
 

	
REMIC 1 Group II Regular Interests

	
68

	
 

	
REMIC 1 Regular Interest

	
68

	
 

	
REMIC II

	
68

	
 

	
REMIC II Available Distribution Amount

	
68

	
 

	
REMIC II Distribution Amount

	
68

	
 

	
REMIC II Interest Loss Allocation Amount

	
70

	
 

	
REMIC II Overcollateralized Amount

	
70

	
 

	
REMIC II Overcollateralization Target Amount

	
70

	
 

	
REMIC II Principal Loss Allocation Amount

	
70

	
 

	
REMIC II Regular Interest

	
70

	
 

	
REMIC III

	
70

	
 

	
REMIC III Available Distribution Amount

	
70

	
 

	
REMIC III Distribution Amount

	
71

	
 

	
REMIC III Regular Interests

	
79

	
 

	
REMIC IV

	
79

	
 

	
REMIC IV Available Distribution Amount

	
79

	
 

	
REMIC IV Distribution Amount

	
79

	
 

	
REMIC IV Regular Interest

	
79

	
 

	
REMIC V

	
79

	
 

	
REMIC V Available Distribution Amount

	
79

	
 

	
REMIC V Distribution Amount

	
79

	
 

	
REMIC VI

	
79

	
 

	
REMIC VI Available Distribution Amount

	
80

	
 

	
REMIC VI Distribution Amount

	
80

	
 

	
REMIC

	
80

	
 

	
REMIC Net WAC Rate

	
80

	
 

	
REMIC Provisions

	
80

	
 

	
REMIC Regular Interests

	
80

	
 

	
Remittance Report

	
80

	
 

	
Rents from Real Property

	
80

	
 

	
REO Account

	
80

	
 

	
REO Disposition

	
81

	
 

	
REO Imputed Interest

	
81

	
 

	
REO Principal Amortization

	
81

	
 

	
REO Property

	
81

	
 

	
Replacement Payment

	
81

	
 

	
Reserve Fund

	
81

	
 

	
Reserve Interest Rate

	
81

	
 

	
Residential Dwelling

	
81

	
 

	
Residual Certificates

	
81

	
 

	
Residual Interest

	
82

	
 

	
Residual NIM Holder

	
82

	
 

	
Responsible Officer

	
82

	
 

	
S&P

	
82

	
 

	
Secretary of State

	
82

	
 

	
Securities Act

	
82

	
 

	
Seller

	
82

	
 

	
Servicer

	
82

	
 

	
Servicer Prepayment Charge Payment Amount

	
82

	
 

	
Servicer Remittance Date

	
82

	
 

	
Servicing Account

	
82

	
 

	
Servicing Advances

	
82

	
 

	
Servicing Fee

	
83

	
 

	
Servicing Fee Rate

	
83

	
 

	
Servicing Officer

	
83

	
 

	
Stated Principal Balance

	
83

	
 

	
Statutory Trust Statute

	
83

	
 

	
Stayed Funds

	
83

	
 

	
Stepdown Date

	
84

	
 

	
Subordinated Net WAC Rate

	
84

	
 

	
Sub‐Servicer

	
84

	
 

	
Sub‐Servicing Account

	
84

	
 

	
Sub‐Servicing Agreement

	
84

	
 

	
Subsequent Recoveries

	
84

	
 

	
Substitution Adjustments

	
84

	
 

	
Supplemental Interest Account

	
84

	
 

	
Supplemental Interest Trust

	
84

	
 

	
Supplemental Interest Trust Trustee

	
84

	
 

	
Swap Agreement

	
84

	
 

	
Swap Counterparty

	
84

	
 

	
Swap Default

	
85

	
 

	
Swap Event of Default

	
85

	
 

	
Swap LIBOR

	
85

	
 

	
Swap Notional Amount

	
85

	
 

	
Swap Payment

	
85

	
 

	
Swap Rate

	
85

	
 

	
Swap Termination Payment

	
85

	
 

	
Tax Matters Person

	
85

	
 

	
Telerate Page 3750

	
86

	
 

	
Termination Event

	
86

	
 

	
Termination Date

	
86

	
 

	
Termination Payment

	
86

	
 

	
Termination Price

	
86

	
 

	
Terminator

	
86

	
 

	
Transfer

	
86

	
 

	
Transferee Affidavit and Agreement

	
86

	
 

	
Transferee

	
86

	
 

	
Transferor

	
86

	
 

	
Trigger Event

	
86

	
 

	
Trust

	
86

	
 

	
Trust Fund

	
86

	
 

	
Trust REMIC

	
86

	
 

	
Trustee

	
87

	
 

	
Trustee Fee

	
87

	
 

	
Trustee Fee Rate

	
87

	
 

	
Uncertificated Notional Amount

	
87

	
 

	
Undercollateralized Amount

	
89

	
 

	
Uninsured Cause

	
89

	
 

	
Unpaid Interest Shortfall Amount

	
89

	
 

	
U.S. Person

	
90

	
 

	
USD-LIBOR-BBA

	
90

	
 

	
Value

	
90

	
 

	
Voting Rights

	
90

 

	
Section 1.02

	
Accounting.

	
90

	
Section 1.03

	
Allocation of Certain Interest Shortfalls.

	
90

	
Section 1.04

	
Rights of the NIMS Insurer.

	
91

	
ARTICLE II

	
Creation of the Trust; Conveyance of the Mortgage Pool Assets, REMIC I Regular Interests, REMIC II Regular Interests and REMIC III Regular Interests; REMIC Election and Designations;
Original Issuance of Certificates

	
92

	
Section 2.01

	
Creation of the Trust

	
92

	
Section 2.02

	
Restrictions on Activities of the Trust

	
93

	
Section 2.03

	
Separateness Requirements

	
93

	
Section 2.04

	
Conveyance of Mortgage Pool Assets; Security Interest

	
95

	
Section 2.05

	
Delivery of Mortgage Files

	
96

	
Section 2.06

	
REMIC Election for REMIC I

	
97

	
Section 2.07

	
Acceptance by Trustee

	
98

	
Section 2.08

	
Representation and Warranty of the Company Concerning the Mortgage Loans

	
99

	
Section 2.09

	
Representations and Warranties of the Seller Concerning the Mortgage Loans

	
103

	
Section 2.10

	
Additional Provisions Relating to Repurchases of and Substitutions for Mortgage Loans by the Company or the Seller

	
103

	
Section 2.11

	
Acknowledgment of Transfer of Mortgage Pool Assets

	
104

	
Section 2.12

	
Conveyance of REMIC II Assets; Security Interest

	
104

	
Section 2.13

	
REMIC Election for REMIC II

	
105

	
Section 2.14

	
Acknowledgement of Transfer of REMIC I Regular Interests

	
107

	
Section 2.15

	
Conveyance of REMIC II Regular Interests; Security Interest

	
107

	
Section 2.16

	
REMIC Election for REMIC III

	
108

	
Section 2.17

	
Acknowledgement of Transfer of REMIC II Regular Interests

	
109

	
Section 2.18

	
Conveyance of Class L3-C Regular Interest

	
109

	
Section 2.19

	
REMIC Election for REMIC IV

	
110

	
Section 2.20

	
Acknowledgement of Transfer of Class L3-C Regular Interest

	
111

	
Section 2.21

	
Conveyance of Class L1-P Regular Interest.

	
111

	
Section 2.22

	
REMIC Election for REMIC V

	
112

	
Section 2.23

	
Acknowledgement of Transfer of Class L1-P Regular Interest

	
113

	
Section 2.24

	
Conveyance of Class L3-SW Regular Interest.

	
113

	
Section 2.25

	
REMIC Election for REMIC VI

	
114

	
Section 2.26

	
Acknowledgement of Transfer of Class L3-SW Regular Interest

	
115

	
Section 2.27

	
Legal Title

	
116

	
Section 2.28

	
Compliance with ERISA Requirements

	
116

	
Section 2.29

	
Additional Representation Concerning the Mortgage Loans

	
116

	
ARTICLE III

	
Administration and Servicing of the Mortgage Loans

	
117

	
Section 3.01

	
The Servicer.

	
117

	
Section 3.02

	
Sub‐Servicing Agreements Between the Servicer and Sub‐Servicers.

	
119

	
Section 3.03

	
Successor Sub‐Servicers

	
120

	
Section 3.04

	
Liability of the Servicer

	
120

	
Section 3.05

	
No Contractual Relationship Between Sub‐Servicers and the NIMS Insurer, the Trustee or Certificateholders

	
121

	
Section 3.06

	
Assumption or Termination of Sub‐Servicing Agreements by Trustee

	
121

	
Section 3.07

	
Collection of Certain Mortgage Loan Payments

	
121

	
Section 3.08

	
Sub‐Servicing Accounts

	
122

	
Section 3.09

	
Collection of Taxes, Assessments and Similar Items; Servicing Accounts

	
122

	
Section 3.10

	
Collection Account and Distribution Account.

	
123

	
Section 3.11

	
Permitted Withdrawals from the Collection Account and Distribution Account.

	
125

	
Section 3.12

	
Investment Accounts; Eligible Investments.

	
127

	
Section 3.13

	
[Reserved].

	
129

	
Section 3.14

	
Maintenance of Hazard Insurance and Errors and Omissions and Fidelity Coverage.

	
129

	
Section 3.15

	
Enforcement of Due‐On‐Sale Clauses; Assumption Agreements

	
130

	
Section 3.16

	
Realization Upon Defaulted Mortgage Loans.

	
131

	
Section 3.17

	
Trustee to Cooperate; Release of Mortgage Files.

	
134

	
Section 3.18

	
Servicing Compensation

	
135

	
Section 3.19

	
Reports to the Trustee; Collection Account Statements

	
136

	
Section 3.20

	
Reports on Assessment of Compliance with Servicing Criteria and Servicing Compliance Statements

	
136

	
Section 3.21

	
Access to Certain Documentation and Information Regarding the Mortgage Loans

	
137

	
Section 3.22

	
Reserve Fund

	
137

	
Section 3.23

	
Title, Management and Disposition of REO Property.

	
139

	
Section 3.24

	
Obligations of the Servicer in Respect of Prepayment Interest Shortfalls

	
142

	
Section 3.25

	
Obligations of the Servicer in Respect of Mortgage Rates and Monthly Payments

	
142

	
Section 3.26

	
[Reserved].

	
142

	
Section 3.27

	
Swap Agreement

	
142

	
Section 3.28

	
Replacement Swap Agreement.

	
143

	
Section 3.29

	
Assigned Prepayment Charges.

	
144

	
ARTICLE IV

	
Flow of Funds

	
145

	
Section 4.01

	
Distributions to Holders of REMIC I Regular Interests and Class R-1 Residual Interest.

	
145

	
Section 4.02

	
Advances; Remittance Reports.

	
145

	
Section 4.03

	
Nonrecoverable Advances

	
146

	
Section 4.04

	
Distributions to Holders of REMIC II Regular Interests and Class R-2 Residual Interest.

	
146

	
Section 4.05

	
Distributions to Holders of Certificates, REMIC III Regular Interests, and Class R-3 Interests.

	
147

	
Section 4.06

	
Statements.

	
152

	
Section 4.07

	
Compliance with Withholding Requirements

	
156

	
Section 4.08

	
Commission Reporting.

	
156

	
Section 4.09

	
Supplemental Interest Trust.

	
158

	
Section 4.10

	
Preference Claims

	
160

	
ARTICLE V

	
The Certificates

	
160

	
Section 5.01

	
The Certificates.

	
160

	
Section 5.02

	
Certificates Issuable in Classes; Distributions of Principal and Interest; Authorized Denominations

	
167

	
Section 5.03

	
Registration of Transfer and Exchange of Certificates

	
167

	
Section 5.04

	
Mutilated, Destroyed, Lost or Stolen Certificates

	
168

	
Section 5.05

	
Persons Deemed Owners

	
168

	
Section 5.06

	
[Reserved.].

	
168

	
Section 5.07

	
Book-Entry for Book-Entry Certificates

	
168

	
Section 5.08

	
Notices to Clearing Agency

	
169

	
Section 5.09

	
Definitive Certificates

	
169

	
Section 5.10

	
Office for Transfer of Certificates

	
170

	
Section 5.11

	
Nature of Certificates

	
170

	
ARTICLE VI

	
The Company and the Servicer

	
171

	
Section 6.01

	
Liability of the Company and the Servicer

	
171

	
Section 6.02

	
Merger or Consolidation of the Company or the Servicer

	
171

	
Section 6.03

	
Limitation on Liability of the Company, the Servicer and Others

	
171

	
Section 6.04

	
Neither the Company nor the Servicer May Resign

	
172

	
Section 6.05

	
Trustee Access

	
172

	
ARTICLE VII

	
Default

	
172

	
Section 7.01

	
Events of Default.

	
172

	
Section 7.02

	
Trustee to Act; Appointment of Successor.

	
175

	
Section 7.03

	
Notification to Certificateholders.

	
176

	
Section 7.04

	
Waiver of Servicer Events of Default

	
177

	
ARTICLE VIII

	
Concerning the Trustees

	
177

	
Section 8.01

	
Duties of Trustees.

	
177

	
Section 8.02

	
Certain Matters Affecting the Trustees

	
178

	
Section 8.03

	
Trustees Not Liable for Certificates or Mortgage Loans

	
180

	
Section 8.04

	
Trustees May Own Certificates

	
180

	
Section 8.05

	
Trustees’ Fees and Expenses

	
180

	
Section 8.06

	
Eligibility Requirements for Trustees

	
181

	
Section 8.07

	
Resignation and Removal of Trustees

	
181

	
Section 8.08

	
Successor Trustee

	
182

	
Section 8.09

	
Merger or Consolidation of Trustee

	
182

	
Section 8.10

	
Appointment of Co-Trustee or Separate Trustee

	
182

	
Section 8.11

	
Authenticating Agents

	
184

	
Section 8.12

	
Paying Agents

	
184

	
Section 8.13

	
Duties of Delaware Trustee.

	
185

	
Section 8.14

	
Amendment to Certificate of Trust

	
186

	
Section 8.15

	
[Reserved]

	
186

	
Section 8.16

	
Trustees Act on Behalf of Trust

	
186

	
Section 8.17

	
Limitation of Liability

	
186

	
Section 8.18

	
Trustee Report on Assessment of Compliance with Servicing Criteria

	
186

	
ARTICLE IX

	
Termination

	
187

	
Section 9.01

	
Termination Upon Purchase by the Servicer or Liquidation of All Mortgage Loans.

	
187

	
Section 9.02

	
Additional Termination Requirements.

	
190

	
Section 9.03

	
Trust Irrevocable

	
191

	
ARTICLE X

	
Miscellaneous Provisions

	
191

	
Section 10.01

	
Amendment.

	
191

	
Section 10.02

	
Recordation of Agreement

	
193

	
Section 10.03

	
Limitation on Rights of Certificateholders

	
193

	
Section 10.04

	
Access to List of Certificateholders

	
194

	
Section 10.05

	
Governing Law

	
194

	
Section 10.06

	
Notices

	
194

	
Section 10.07

	
Compliance With Regulation AB

	
194

	
Section 10.08

	
Severability of Provisions

	
195

	
Section 10.09

	
Counterpart Signatures

	
195

	
Section 10.10

	
Benefits of Agreement

	
195

	
Section 10.11

	
Notices and Copies to Rating Agencies.

	
195

	
Section 10.12

	
Covenant Not to Place Trust Into Bankruptcy

	
196

	
Section 10.13

	
Covenant Not to Place Company Into Bankruptcy

	
196

	
Section 10.14

	
Third-Party Beneficiaries.

	
197

 

 

	
Exhibit A

	
Form of Certificates (other than Residual Certificates)

	
Exhibit B

	
Form of Certificates

	
Exhibit C

	
Form of Lost Note Affidavit

	
Exhibit D

	
Mortgage Loan Schedule

	
Exhibit E

	
Form of Swap Agreement

	
Exhibit F

	
Form of Residual NIM Holder Certificate

	
Exhibit G

	
Form of Mortgage Loan Assignment Agreement

	
Exhibit H

	
Form of Additional Matter Incorporated Into the Form of the Certificates

	
Exhibit I

	
Transferor Certificate For Residual Certificates

	
Exhibit J

	
Transferee Affidavit And Agreement For Residual Certificates

	
Exhibit K

	
Form 10-D, Form 8-K, and Form 10-K Reporting Responsibility

	
Exhibit L

	
Form of Investment Letter

	
Exhibit M

	
Form of Trustee’s Certification Pursuant to Section 2.07

	
Exhibit N

	
Form of Transferor Certificate

	
Exhibit O

	
Form of ERISA Representation

	
Exhibit P

	
Form of Trustee Certification

 

 

This Pooling and Servicing Agreement, dated as of April 1, 2006 (this “Agreement”), is by and among WaMu
Asset Acceptance Corp., as depositor (the “Company”), Washington Mutual Bank, as Servicer, LaSalle Bank National Association, as Trustee, and Christiana Bank & Trust Company, as Delaware Trustee.  Capitalized terms used in this Agreement
and not otherwise defined have the meanings ascribed to such terms in Article I hereof.

PRELIMINARY STATEMENT

 

The Company at the Closing Date is the owner of the Mortgage Loans and the other property being conveyed by it to the Trust. On
the Closing Date, the Company will acquire the REMIC I Regular Interests and the Class R-1 Residual Interest from the Trust as consideration for its transfer to the Trust of the Mortgage Loans and certain other assets and will be the owner of the REMIC I Regular
Interests and the Class R-1 Residual Interest.  Thereafter on the Closing Date, the Company will acquire the REMIC II Regular Interests and the Class R-2 Residual Interest from the Trust as consideration for its transfer to the Trust of the REMIC I Regular
Interests (other than the Class L1-P Regular Interest) and will be the owner of the REMIC II Regular Interests and the Class R-2 Residual Interest.  Thereafter on the Closing Date, the Company will acquire the Certificates (other than the Class P Certificates
and the Class C Certificates), the Class L3-C Regular Interest, the Class L3-SW Regular Interest, and the Class R-3 Residual Interest from the Trust as consideration for its transfer to the Trust of the REMIC II Regular Interests and will be the owner of those
Certificates and Regular and Residual Interests.  Thereafter on the Closing Date, the Company will acquire the Class C Certificates and the Class R-4 Residual Interest as consideration for its transfer to the Trust of the Class L3-C Regular Interest and will be
the owner of the Class C Certificates and the Class R-4 Residual Interest.  Thereafter on the Closing Date, the Company will acquire the Class P Certificates and the Class R-5 Residual Interest as consideration for its transfer to the Trust of the Class L1-P
Regular Interest and will be the owner of the Class P Certificates and the Class R-5 Residual Interest.  Thereafter on the Closing Date, the Company will acquire the Class L6-SW Regular Interest and the Class R-6 Residual Interest as consideration for its
transfer to the Trust of the Class L3-SW Regular Interest and will be the owner of the Class L6-SW Regular Interest and the Class R-6 Residual Interest.  The Company has duly authorized the execution and delivery of this Agreement to provide for (i) the
conveyance to the Trust of the Mortgage Loans and certain other assets, (ii) the issuance to the Company of the REMIC I Regular Interests and the Class R-1 Residual Interest representing in the aggregate the entire beneficial interest in REMIC I, (iii) the
conveyance to the Trust of the REMIC I Regular Interests (other than the Class L1-P Regular Interest), (iv) the issuance to the Company of the REMIC II Regular Interests and the Class R-2 Residual Interest representing in the aggregate the entire beneficial interest
in REMIC II, (v) the conveyance to the Trust of the REMIC II Regular Interests, (vi) the issuance to the Company of the Certificates (other than the Class C and Class P Certificates), the Class L3-C Regular Interest, the Class L3-SW Regular Interest, and the Class
R-3 Residual Interest, representing in the aggregate the entire beneficial interest in REMIC III, (vii) the conveyance to the Trust of the Class L3-C Regular Interest, (viii) the issuance to the Company of the Class C Certificates and the Class R-4 Residual Interest,
representing in the aggregate the entire beneficial interest in REMIC IV, (ix) the conveyance to the Trust of the Class L1-P Regular Interest, (x) the issuance to the Company of the Class P Certificates and the Class R-5 Residual Interest, representing in the
aggregate the entire beneficial interest in REMIC V, (xi) the conveyance to the Trust of the Class L3-SW Regular Interest, (x) the issuance to the Company of the L6-SW Regular Interest and the Class R-6 Residual Interest, representing in the aggregate the entire
beneficial interest in REMIC VI.  The Company and the Servicer are entering into this Agreement, and the Trustee and the Delaware Trustee are each accepting the trust created hereby, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged.

The Certificates issued hereunder, other than the Class C Certificates, the Class P Certificates and the Residual Certificates,
have been offered for sale pursuant to a Prospectus, dated January 6, 2006, and a Prospectus Supplement, dated April 18, 2006, of the Company (together, the “Prospectus”). The Trust created hereunder is the “Trust” described in the
Prospectus and the Certificates are the “Certificates” described therein. The following tables set forth the designation, type of interest, Certificate Interest Rate or Pass-Through Rate, initial Class Principal Balance, initial Certificate Principal
Balance and Assumed Final Maturity Date for the REMIC I Regular Interests, the REMIC II Regular Interests, the REMIC III Regular Interests, the Class L6-SW Regular Interest, the Certificates and the Residual Interests:

REMIC I Interests

  

	

Class Designation for each Class of REMIC I Regular Interests and the Class R-1 Residual Interest

	

Type of Interest

	

Certificate Interest

 Rate

	

Initial Class

 Principal

 Balance

	

Rate Change Date

	

Assumed

 Final Maturity Date(1)

	
Class L1-Y-X

	
Regular

	
Variable (2)

	
4,621,556.53

	
 

	
February 2036

	
Class L1-Y-1A

	
Regular

	
Variable (3)

	
1,688,600.28

	
June 2006

	
February 2036

	
Class L1-Y-1B

	
Regular

	
Variable (4)

	
1,688,600.28

	
 

	
February 2036

	
Class L1-Y-2A

	
Regular

	
Variable (3)

	
577,424.44

	
July 2006

	
February 2036

	
Class L1-Y-2B

	
Regular

	
Variable (4)

	
577,424.44

	
 

	
February 2036

	
Class L1-Y-3A

	
Regular

	
Variable (3)

	
636,834.15

	
August 2006

	
February 2036

	
Class L1-Y-3B

	
Regular

	
Variable (4)

	
636,834.15

	
 

	
February 2036

	
Class L1-Y-4A

	
Regular

	
Variable (3)

	
706,456.48

	
September 2006

	
February 2036

	
Class L1-Y-4B

	
Regular

	
Variable (4)

	
706,456.48

	
 

	
February 2036

	
Class L1-Y-5A

	
Regular

	
Variable (3)

	
775,520.87

	
October 2006

	
February 2036

	
Class L1-Y-5B

	
Regular

	
Variable (4)

	
775,520.87

	
 

	
February 2036

	
Class L1-Y-6A

	
Regular

	
Variable (3)

	
868,124.26

	
November 2006

	
February 2036

	
Class L1-Y-6B

	
Regular

	
Variable (4)

	
868,124.26

	
 

	
February 2036

	
Class L1-Y-7A

	
Regular

	
Variable (3)

	
1,041,038.06

	
December 2006

	
February 2036

	
Class L1-Y-7B

	
Regular

	
Variable (4)

	
1,041,038.06

	
 

	
February 2036

	
Class L1-Y-8A

	
Regular

	
Variable (3)

	
1,321,495.26

	
January 2007

	
February 2036

	
Class L1-Y-8B

	
Regular

	
Variable (4)

	
1,321,495.26

	
 

	
February 2036

	
Class L1-Y-9A

	
Regular

	
Variable (3)

	
1,057,009.76

	
February 2007

	
February 2036

	
Class L1-Y-9B

	
Regular

	
Variable (4)

	
1,057,009.76

	
 

	
February 2036

	
Class L1-Y-10A

	
Regular

	
Variable (3)

	
1,257,049.90

	
March 2007

	
February 2036

	
Class L1-Y-10B

	
Regular

	
Variable (4)

	
1,257,049.90

	
 

	
February 2036

	
Class L1-Y-11A

	
Regular

	
Variable (3)

	
1,182,048.72

	
April 2007

	
February 2036

	
Class L1-Y-11B

	
Regular

	
Variable (4)

	
1,182,048.72

	
 

	
February 2036

	
Class L1-Y-12A

	
Regular

	
Variable (3)

	
1,112,955.94

	
May 2007

	
February 2036

	
Class L1-Y-12B

	
Regular

	
Variable (4)

	
1,112,955.94

	
 

	
February 2036

	
Class L1-Y-13A

	
Regular

	
Variable (3)

	
1,038,773.60

	
June 2007

	
February 2036

	
Class L1-Y-13B

	
Regular

	
Variable (4)

	
1,038,773.60

	
 

	
February 2036

	
Class L1-Y-14A

	
Regular

	
Variable (3)

	
934,080.01

	
July 2007

	
February 2036

	
Class L1-Y-14B

	
Regular

	
Variable (4)

	
934,080.01

	
 

	
February 2036

	
Class L1-Y-15A

	
Regular

	
Variable (3)

	
179,839.34

	
August 2007

	
February 2036

	
Class L1-Y-15B

	
Regular

	
Variable (4)

	
179,839.34

	
 

	
February 2036

	
Class L1-Y-16A

	
Regular

	
Variable (3)

	
119,726.68

	
September 2007

	
February 2036

	
Class L1-Y-16B

	
Regular

	
Variable (4)

	
119,726.68

	
 

	
February 2036

	
Class L1-Y-17A

	
Regular

	
Variable (3)

	
738,039.60

	
October 2007

	
February 2036

	
Class L1-Y-17B

	
Regular

	
Variable (4)

	
738,039.60

	
 

	
February 2036

	
Class L1-Y-18A

	
Regular

	
Variable (3)

	
895,542.87

	
November 2007

	
February 2036

	
Class L1-Y-18B

	
Regular

	
Variable (4)

	
895,542.87

	
 

	
February 2036

	
Class L1-Y-19A

	
Regular

	
Variable (3)

	
1,605,051.58

	
December 2007

	
February 2036

	
Class L1-Y-19B

	
Regular

	
Variable (4)

	
1,605,051.58

	
 

	
February 2036

	
Class L1-Y-20A

	
Regular

	
Variable (3)

	
1,717,240.42

	
January 2008

	
February 2036

	
Class L1-Y-20B

	
Regular

	
Variable (4)

	
1,717,240.42

	
 

	
February 2036

	
Class L1-Y-21A

	
Regular

	
Variable (3)

	
1,469,526.33

	
February 2008

	
February 2036

	
Class L1-Y-21B

	
Regular

	
Variable (4)

	
1,469,526.33

	
 

	
February 2036

	
Class L1-Y-22A

	
Regular

	
Variable (3)

	
1,258,274.49

	
March 2008

	
February 2036

	
Class L1-Y-22B

	
Regular

	
Variable (4)

	
1,258,274.49

	
 

	
February 2036

	
Class L1-Y-23A

	
Regular

	
Variable (3)

	
1,059,323.54

	
April 2008

	
February 2036

	
Class L1-Y-23B

	
Regular

	
Variable (4)

	
1,059,323.54

	
 

	
February 2036

	
Class L1-Y-24A

	
Regular

	
Variable (3)

	
826,745.77

	
May 2008

	
February 2036

	
Class L1-Y-24B

	
Regular

	
Variable (4)

	
826,745.77

	
 

	
February 2036

	
Class L1-Y-25A

	
Regular

	
Variable (3)

	
660,575.85

	
June 2008

	
February 2036

	
Class L1-Y-25B

	
Regular

	
Variable (4)

	
660,575.85

	
 

	
February 2036

	
Class L1-Y-26A

	
Regular

	
Variable (3)

	
542,817.32

	
July 2008

	
February 2036

	
Class L1-Y-26B

	
Regular

	
Variable (4)

	
542,817.32

	
 

	
February 2036

	
Class L1-Y-27A

	
Regular

	
Variable (3)

	
444,748.73

	
August 2008

	
February 2036

	
Class L1-Y-27B

	
Regular

	
Variable (4)

	
444,748.73

	
 

	
February 2036

	
Class L1-Y-28A

	
Regular

	
Variable (3)

	
408,762.66

	
September 2008

	
February 2036

	
Class L1-Y-28B

	
Regular

	
Variable (4)

	
408,762.66

	
 

	
February 2036

	
Class L1-Y-29A

	
Regular

	
Variable (3)

	
377,249.17

	
October 2008

	
February 2036

	
Class L1-Y-29B

	
Regular

	
Variable (4)

	
377,249.17

	
 

	
February 2036

	
Class L1-Y-30A

	
Regular

	
Variable (3)

	
401,152.41

	
November 2008

	
February 2036

	
Class L1-Y-30B

	
Regular

	
Variable (4)

	
401,152.41

	
 

	
February 2036

	
Class L1-Y-31A

	
Regular

	
Variable (3)

	
440,487.46

	
December 2008

	
February 2036

	
Class L1-Y-31B

	
Regular

	
Variable (4)

	
440,487.46

	
 

	
February 2036

	
Class L1-Y-32A

	
Regular

	
Variable (3)

	
398,108.36

	
January 2009

	
February 2036

	
Class L1-Y-32B

	
Regular

	
Variable (4)

	
398,108.36

	
 

	
February 2036

	
Class L1-Y-33A

	
Regular

	
Variable (3)

	
336,157.56

	
February 2009

	
February 2036

	
Class L1-Y-33B

	
Regular

	
Variable (4)

	
336,157.56

	
 

	
February 2036

	
Class L1-Y-34A

	
Regular

	
Variable (3)

	
304,477.23

	
March 2009

	
February 2036

	
Class L1-Y-34B

	
Regular

	
Variable (4)

	
304,477.23

	
 

	
February 2036

	
Class L1-Y-35A

	
Regular

	
Variable (3)

	
285,749.08

	
April 2009

	
February 2036

	
Class L1-Y-35B

	
Regular

	
Variable (4)

	
285,749.08

	
 

	
February 2036

	
Class L1-Y-36A

	
Regular

	
Variable (3)

	
268,655.40

	
May 2009

	
February 2036

	
Class L1-Y-36B

	
Regular

	
Variable (4)

	
268,655.40

	
 

	
February 2036

	
Class L1-Y-37A

	
Regular

	
Variable (3)

	
252,798.16

	
June 2009

	
February 2036

	
Class L1-Y-37B

	
Regular

	
Variable (4)

	
252,798.16

	
 

	
February 2036

	
Class L1-Y-38A

	
Regular

	
Variable (3)

	
236,727.01

	
July 2009

	
February 2036

	
Class L1-Y-38B

	
Regular

	
Variable (4)

	
236,727.01

	
 

	
February 2036

	
Class L1-Y-39A

	
Regular

	
Variable (3)

	
216,303.57

	
August 2009

	
February 2036

	
Class L1-Y-39B

	
Regular

	
Variable (4)

	
216,303.57

	
 

	
February 2036

	
Class L1-Y-40A

	
Regular

	
Variable (3)

	
204,423.24

	
September 2009

	
February 2036

	
Class L1-Y-40B

	
Regular

	
Variable (4)

	
204,423.24

	
 

	
February 2036

	
Class L1-Y-41A

	
Regular

	
Variable (3)

	
193,570.12

	
October 2009

	
February 2036

	
Class L1-Y-41B

	
Regular

	
Variable (4)

	
193,570.12

	
 

	
February 2036

	
Class L1-Y-42A

	
Regular

	
Variable (3)

	
184,431.24

	
November 2009

	
February 2036

	
Class L1-Y-42B

	
Regular

	
Variable (4)

	
184,431.24

	
 

	
February 2036

	
Class L1-Y-43A

	
Regular

	
Variable (3)

	
175,662.43

	
December 2009

	
February 2036

	
Class L1-Y-43B

	
Regular

	
Variable (4)

	
175,662.43

	
 

	
February 2036

	
Class L1-Y-44A

	
Regular

	
Variable (3)

	
167,302.43

	
January 2010

	
February 2036

	
Class L1-Y-44B

	
Regular

	
Variable (4)

	
167,302.43

	
 

	
February 2036

	
Class L1-Y-45A

	
Regular

	
Variable (3)

	
156,098.55

	
February 2010

	
February 2036

	
Class L1-Y-45B

	
Regular

	
Variable (4)

	
156,098.55

	
 

	
February 2036

	
Class L1-Y-46A

	
Regular

	
Variable (3)

	
145,738.85

	
March 2010

	
February 2036

	
Class L1-Y-46B

	
Regular

	
Variable (4)

	
145,738.85

	
 

	
February 2036

	
Class L1-Y-47A

	
Regular

	
Variable (3)

	
135,930.90

	
April 2010

	
February 2036

	
Class L1-Y-47B

	
Regular

	
Variable (4)

	
135,930.90

	
 

	
February 2036

	
Class L1-Y-48A

	
Regular

	
Variable (3)

	
127,070.36

	
May 2010

	
February 2036

	
Class L1-Y-48B

	
Regular

	
Variable (4)

	
127,070.36

	
 

	
February 2036

	
Class L1-Y-49A

	
Regular

	
Variable (3)

	
121,176.24

	
June 2010

	
February 2036

	
Class L1-Y-49B

	
Regular

	
Variable (4)

	
121,176.24

	
 

	
February 2036

	
Class L1-Y-50A

	
Regular

	
Variable (3)

	
117,329.16

	
July 2010

	
February 2036

	
Class L1-Y-50B

	
Regular

	
Variable (4)

	
117,329.16

	
 

	
February 2036

	
Class L1-Y-51A

	
Regular

	
Variable (3)

	
109,968.68

	
August 2010

	
February 2036

	
Class L1-Y-51B

	
Regular

	
Variable (4)

	
109,968.68

	
 

	
February 2036

	
Class L1-Y-52A

	
Regular

	
Variable (3)

	
105,090.62

	
September 2010

	
February 2036

	
Class L1-Y-52B

	
Regular

	
Variable (4)

	
105,090.62

	
 

	
February 2036

	
Class L1-Y-53A

	
Regular

	
Variable (3)

	
100,629.90

	
October 2010

	
February 2036

	
Class L1-Y-53B

	
Regular

	
Variable (4)

	
100,629.90

	
 

	
February 2036

	
Class L1-Y-54A

	
Regular

	
Variable (3)

	
96,367.28

	
November 2010

	
February 2036

	
Class L1-Y-54B

	
Regular

	
Variable (4)

	
96,367.28

	
 

	
February 2036

	
Class L1-Y-55A

	
Regular

	
Variable (3)

	
874,216.94

	
December 2010

	
February 2036

	
Class L1-Y-55B

	
Regular

	
Variable (4)

	
874,216.94

	
 

	
February 2036

	
Class L1-Z-X

	
Regular

	
Variable (5)

	
21,097,985.67

	
 

	
February 2036

	
Class L1-Z-1A

	
Regular

	
Variable (3)

	
7,708,672.22

	
June 2006

	
February 2036

	
Class L1-Z-1B

	
Regular

	
Variable (4)

	
7,708,672.22

	
 

	
February 2036

	
Class L1-Z-2A

	
Regular

	
Variable (3)

	
2,636,015.06

	
July 2006

	
February 2036

	
Class L1-Z-2B

	
Regular

	
Variable (4)

	
2,636,015.06

	
 

	
February 2036

	
Class L1-Z-3A

	
Regular

	
Variable (3)

	
2,907,227.85

	
August 2006

	
February 2036

	
Class L1-Z-3B

	
Regular

	
Variable (4)

	
2,907,227.85

	
 

	
February 2036

	
Class L1-Z-4A

	
Regular

	
Variable (3)

	
3,225,062.52

	
September 2006

	
February 2036

	
Class L1-Z-4B

	
Regular

	
Variable (4)

	
3,225,062.52

	
 

	
February 2036

	
Class L1-Z-5A

	
Regular

	
Variable (3)

	
3,540,350.13

	
October 2006

	
February 2036

	
Class L1-Z-5B

	
Regular

	
Variable (4)

	
3,540,350.13

	
 

	
February 2036

	
Class L1-Z-6A

	
Regular

	
Variable (3)

	
3,963,096.24

	
November 2006

	
February 2036

	
Class L1-Z-6B

	
Regular

	
Variable (4)

	
3,963,096.24

	
 

	
February 2036

	
Class L1-Z-7A

	
Regular

	
Variable (3)

	
4,752,469.44

	
December 2006

	
February 2036

	
Class L1-Z-7B

	
Regular

	
Variable (4)

	
4,752,469.44

	
 

	
February 2036

	
Class L1-Z-8A

	
Regular

	
Variable (3)

	
6,032,791.74

	
January 2007

	
February 2036

	
Class L1-Z-8B

	
Regular

	
Variable (4)

	
6,032,791.74

	
 

	
February 2036

	
Class L1-Z-9A

	
Regular

	
Variable (3)

	
4,825,382.24

	
February 2007

	
February 2036

	
Class L1-Z-9B

	
Regular

	
Variable (4)

	
4,825,382.24

	
 

	
February 2036

	
Class L1-Z-10A

	
Regular

	
Variable (3)

	
5,738,590.60

	
March 2007

	
February 2036

	
Class L1-Z-10B

	
Regular

	
Variable (4)

	
5,738,590.60

	
 

	
February 2036

	
Class L1-Z-11A

	
Regular

	
Variable (3)

	
5,396,200.78

	
April 2007

	
February 2036

	
Class L1-Z-11B

	
Regular

	
Variable (4)

	
5,396,200.78

	
 

	
February 2036

	
Class L1-Z-12A

	
Regular

	
Variable (3)

	
5,080,783.56

	
May 2007

	
February 2036

	
Class L1-Z-12B

	
Regular

	
Variable (4)

	
5,080,783.56

	
 

	
February 2036

	
Class L1-Z-13A

	
Regular

	
Variable (3)

	
4,742,131.90

	
June 2007

	
February 2036

	
Class L1-Z-13B

	
Regular

	
Variable (4)

	
4,742,131.90

	
 

	
February 2036

	
Class L1-Z-14A

	
Regular

	
Variable (3)

	
4,264,192.49

	
July 2007

	
February 2036

	
Class L1-Z-14B

	
Regular

	
Variable (4)

	
4,264,192.49

	
 

	
February 2036

	
Class L1-Z-15A

	
Regular

	
Variable (3)

	
820,989.16

	
August 2007

	
February 2036

	
Class L1-Z-15B

	
Regular

	
Variable (4)

	
820,989.16

	
 

	
February 2036

	
Class L1-Z-16A

	
Regular

	
Variable (3)

	
546,567.32

	
September 2007

	
February 2036

	
Class L1-Z-16B

	
Regular

	
Variable (4)

	
546,567.32

	
 

	
February 2036

	
Class L1-Z-17A

	
Regular

	
Variable (3)

	
3,369,243.40

	
October 2007

	
February 2036

	
Class L1-Z-17B

	
Regular

	
Variable (4)

	
3,369,243.40

	
 

	
February 2036

	
Class L1-Z-18A

	
Regular

	
Variable (3)

	
4,088,265.63

	
November 2007

	
February 2036

	
Class L1-Z-18B

	
Regular

	
Variable (4)

	
4,088,265.63

	
 

	
February 2036

	
Class L1-Z-19A

	
Regular

	
Variable (3)

	
7,327,261.92

	
December 2007

	
February 2036

	
Class L1-Z-19B

	
Regular

	
Variable (4)

	
7,327,261.92

	
 

	
February 2036

	
Class L1-Z-20A

	
Regular

	
Variable (3)

	
7,839,418.08

	
January 2008

	
February 2036

	
Class L1-Z-20B

	
Regular

	
Variable (4)

	
7,839,418.08

	
 

	
February 2036

	
Class L1-Z-21A

	
Regular

	
Variable (3)

	
6,708,572.17

	
February 2008

	
February 2036

	
Class L1-Z-21B

	
Regular

	
Variable (4)

	
6,708,572.17

	
 

	
February 2036

	
Class L1-Z-22A

	
Regular

	
Variable (3)

	
5,744,181.01

	
March 2008

	
February 2036

	
Class L1-Z-22B

	
Regular

	
Variable (4)

	
5,744,181.01

	
 

	
February 2036

	
Class L1-Z-23A

	
Regular

	
Variable (3)

	
4,835,944.96

	
April 2008

	
February 2036

	
Class L1-Z-23B

	
Regular

	
Variable (4)

	
4,835,944.96

	
 

	
February 2036

	
Class L1-Z-24A

	
Regular

	
Variable (3)

	
3,774,198.23

	
May 2008

	
February 2036

	
Class L1-Z-24B

	
Regular

	
Variable (4)

	
3,774,198.23

	
 

	
February 2036

	
Class L1-Z-25A

	
Regular

	
Variable (3)

	
3,015,611.65

	
June 2008

	
February 2036

	
Class L1-Z-25B

	
Regular

	
Variable (4)

	
3,015,611.65

	
 

	
February 2036

	
Class L1-Z-26A

	
Regular

	
Variable (3)

	
2,478,029.18

	
July 2008

	
February 2036

	
Class L1-Z-26B

	
Regular

	
Variable (4)

	
2,478,029.18

	
 

	
February 2036

	
Class L1-Z-27A

	
Regular

	
Variable (3)

	
2,030,333.77

	
August 2008

	
February 2036

	
Class L1-Z-27B

	
Regular

	
Variable (4)

	
2,030,333.77

	
 

	
February 2036

	
Class L1-Z-28A

	
Regular

	
Variable (3)

	
1,866,052.84

	
September 2008

	
February 2036

	
Class L1-Z-28B

	
Regular

	
Variable (4)

	
1,866,052.84

	
 

	
February 2036

	
Class L1-Z-29A

	
Regular

	
Variable (3)

	
1,722,189.83

	
October 2008

	
February 2036

	
Class L1-Z-29B

	
Regular

	
Variable (4)

	
1,722,189.83

	
 

	
February 2036

	
Class L1-Z-30A

	
Regular

	
Variable (3)

	
1,831,311.09

	
November 2008

	
February 2036

	
Class L1-Z-30B

	
Regular

	
Variable (4)

	
1,831,311.09

	
 

	
February 2036

	
Class L1-Z-31A

	
Regular

	
Variable (3)

	
2,010,880.54

	
December 2008

	
February 2036

	
Class L1-Z-31B

	
Regular

	
Variable (4)

	
2,010,880.54

	
 

	
February 2036

	
Class L1-Z-32A

	
Regular

	
Variable (3)

	
1,817,414.64

	
January 2009

	
February 2036

	
Class L1-Z-32B

	
Regular

	
Variable (4)

	
1,817,414.64

	
 

	
February 2036

	
Class L1-Z-33A

	
Regular

	
Variable (3)

	
1,534,601.44

	
February 2009

	
February 2036

	
Class L1-Z-33B

	
Regular

	
Variable (4)

	
1,534,601.44

	
 

	
February 2036

	
Class L1-Z-34A

	
Regular

	
Variable (3)

	
1,389,976.77

	
March 2009

	
February 2036

	
Class L1-Z-34B

	
Regular

	
Variable (4)

	
1,389,976.77

	
 

	
February 2036

	
Class L1-Z-35A

	
Regular

	
Variable (3)

	
1,304,480.42

	
April 2009

	
February 2036

	
Class L1-Z-35B

	
Regular

	
Variable (4)

	
1,304,480.42

	
 

	
February 2036

	
Class L1-Z-36A

	
Regular

	
Variable (3)

	
1,226,445.60

	
May 2009

	
February 2036

	
Class L1-Z-36B

	
Regular

	
Variable (4)

	
1,226,445.60

	
 

	
February 2036

	
Class L1-Z-37A

	
Regular

	
Variable (3)

	
1,154,055.34

	
June 2009

	
February 2036

	
Class L1-Z-37B

	
Regular

	
Variable (4)

	
1,154,055.34

	
 

	
February 2036

	
Class L1-Z-38A

	
Regular

	
Variable (3)

	
1,080,688.49

	
July 2009

	
February 2036

	
Class L1-Z-38B

	
Regular

	
Variable (4)

	
1,080,688.49

	
 

	
February 2036

	
Class L1-Z-39A

	
Regular

	
Variable (3)

	
987,452.93

	
August 2009

	
February 2036

	
Class L1-Z-39B

	
Regular

	
Variable (4)

	
987,452.93

	
 

	
February 2036

	
Class L1-Z-40A

	
Regular

	
Variable (3)

	
933,217.76

	
September 2009

	
February 2036

	
Class L1-Z-40B

	
Regular

	
Variable (4)

	
933,217.76

	
 

	
February 2036

	
Class L1-Z-41A

	
Regular

	
Variable (3)

	
883,671.88

	
October 2009

	
February 2036

	
Class L1-Z-41B

	
Regular

	
Variable (4)

	
883,671.88

	
 

	
February 2036

	
Class L1-Z-42A

	
Regular

	
Variable (3)

	
841,951.76

	
November 2009

	
February 2036

	
Class L1-Z-42B

	
Regular

	
Variable (4)

	
841,951.76

	
 

	
February 2036

	
Class L1-Z-43A

	
Regular

	
Variable (3)

	
801,921.07

	
December 2009

	
February 2036

	
Class L1-Z-43B

	
Regular

	
Variable (4)

	
801,921.07

	
 

	
February 2036

	
Class L1-Z-44A

	
Regular

	
Variable (3)

	
763,756.57

	
January 2010

	
February 2036

	
Class L1-Z-44B

	
Regular

	
Variable (4)

	
763,756.57

	
 

	
February 2036

	
Class L1-Z-45A

	
Regular

	
Variable (3)

	
712,609.45

	
February 2010

	
February 2036

	
Class L1-Z-45B

	
Regular

	
Variable (4)

	
712,609.45

	
 

	
February 2036

	
Class L1-Z-46A

	
Regular

	
Variable (3)

	
665,316.15

	
March 2010

	
February 2036

	
Class L1-Z-46B

	
Regular

	
Variable (4)

	
665,316.15

	
 

	
February 2036

	
Class L1-Z-47A

	
Regular

	
Variable (3)

	
620,541.60

	
April 2010

	
February 2036

	
Class L1-Z-47B

	
Regular

	
Variable (4)

	
620,541.60

	
 

	
February 2036

	
Class L1-Z-48A

	
Regular

	
Variable (3)

	
580,092.14

	
May 2010

	
February 2036

	
Class L1-Z-48B

	
Regular

	
Variable (4)

	
580,092.14

	
 

	
February 2036

	
Class L1-Z-49A

	
Regular

	
Variable (3)

	
553,184.76

	
June 2010

	
February 2036

	
Class L1-Z-49B

	
Regular

	
Variable (4)

	
553,184.76

	
 

	
February 2036

	
Class L1-Z-50A

	
Regular

	
Variable (3)

	
535,622.34

	
July 2010

	
February 2036

	
Class L1-Z-50B

	
Regular

	
Variable (4)

	
535,622.34

	
 

	
February 2036

	
Class L1-Z-51A

	
Regular

	
Variable (3)

	
502,020.82

	
August 2010

	
February 2036

	
Class L1-Z-51B

	
Regular

	
Variable (4)

	
502,020.82

	
 

	
February 2036

	
Class L1-Z-52A

	
Regular

	
Variable (3)

	
479,751.88

	
September 2010

	
February 2036

	
Class L1-Z-52B

	
Regular

	
Variable (4)

	
479,751.88

	
 

	
February 2036

	
Class L1-Z-53A

	
Regular

	
Variable (3)

	
459,388.10

	
October 2010

	
February 2036

	
Class L1-Z-53B

	
Regular

	
Variable (4)

	
459,388.10

	
 

	
February 2036

	
Class L1-Z-54A

	
Regular

	
Variable (3)

	
439,928.72

	
November 2010

	
February 2036

	
Class L1-Z-54B

	
Regular

	
Variable (4)

	
439,928.72

	
 

	
February 2036

	
Class L1-Z-55A

	
Regular

	
Variable (3)

	
3,990,910.06

	
December 2010

	
February 2036

	
Class L1-Z-55B

	
Regular

	
Variable (4)

	
3,990,910.06

	
 

	
February 2036

	
Class L1-P

	
Regular

	
Variable (6)

	
100.00

	
 

	
February 2036

	
Class R-1 (7)

	
Residual

	
 

	
----

	
 

	
February 2036

  

 

(1)           The
Distribution Date in the specified month, which is the month following the month the latest maturing Mortgage Loan in the related Loan Group (or Loan Groups, as applicable) matures.  For federal income tax purposes, for each Class of REMIC I Regular and Residual
Interests, the “latest possible maturity date” shall be the Assumed Final Maturity Date.

(2)           The Class
L1-Y-X shall accrue interest at a per annum rate equal to the weighted average of the Adjusted Net Mortgage Rates of the Group I Loans.

(3)           Each REMIC I Group I Regular Interest ending with the designation “A” shall accrue interest at a per annum rate equal to the weighted average of the Adjusted Net Mortgage Rates of the Group I Loans multiplied by 2, subject to a maximum rate
of two times the Swap Rate.  Each REMIC I Group II Regular Interest ending with the designation “A” shall accrue interest at a per annum rate equal to the weighted average of the Adjusted Net Mortgage Rates of the Group II Loans multiplied by 2,
subject to a maximum rate of two times the Swap Rate.

(4)           Each REMIC I Group I Regular Interest ending with the designation “B” shall accrue interest at a per annum rate equal to the greater of (x) the excess, if any, of (i) 2 multiplied by the weighted average of the Adjusted Net Mortgage Rates of the Group
I Loans over (ii) two times the Swap Rate and (y) 0.00%.  Each REMIC I Group II Regular Interest ending with the designation “B” shall accrue interest at a per annum rate equal to the greater of (x) the excess, if any, of (i) 2 multiplied by the
weighted average of the Adjusted Net Mortgage Rates of the Group II Loans over (ii) two times the Swap Rate and (y) 0.00%.

(5)           The Class L1-Z-X
shall accrue interest at a per annum rate equal to the weighted average of the Adjusted Net Mortgage Rates of the Group II Loans. 

(6)           The Class L1-P
Regular Interest shall not accrue interest but shall be entitled to receive all Assigned Prepayment Charges collected on the Mortgage Loans.

(7)           The Class R-1
Residual Interest will not be entitled to receive any distributions of interest or principal.

 

For purposes of calculating the Certificate Interest Rate of any REMIC I Regular Interest for any Distribution Date under the
foregoing table, the weighted average of the Adjusted Net Mortgage Rates of the Group I or Group II Mortgage Loans shall be determined (i) on the basis of the Stated Principal Balances of the Mortgage Loans as of the first day of the month preceding such Distribution
Date and (ii) by excluding from the determination any Mortgage Loan that was prepaid in full on or after the first day of the month preceding such Distribution Date and before the 15th day of such month.

As provided herein, with respect to REMIC I, the Trustee will cause an election to be made on behalf of REMIC I to be treated
for federal income tax purposes as a REMIC. The REMIC I Regular Interests will be designated regular interests in REMIC I and the Class R-1 Residual Interest will be designated the sole class of residual interest in REMIC I, for purposes of the REMIC
Provisions.

REMIC II Interests

	

Class Designation for each Class of REMIC II Regular Interests and the Class R-2 Residual Interest

	

Type of Interest

	

Certificate Interest

 Rate

	

Initial Class

 Principal

 Balance

	

Assumed

 Final Maturity

 Date(1)

	
 Class L2-XX

	
Regular

	
Variable (2)

	
190,705,341.33

	
February 2036

	
 Class L2-1-A1

	
Regular

	
Variable (2)

	
267,890.00

	
February 2036

	
 Class L2-2-A1

	
Regular

	
Variable (2)

	
682,520.00

	
February 2036

	
 Class L2-2-A2

	
Regular

	
Variable (2)

	
196,180.00

	
February 2036

	
 Class L2-2-A3

	
Regular

	
Variable (2)

	
235,555.00

	
February 2036

	
 Class L2-2-A4

	
Regular

	
Variable (2)

	
108,455.00

	
February 2036

	
 Class L2-M1

	
Regular

	
Variable (2)

	
74,920.00

	
February 2036

	
 Class L2-M2

	
Regular

	
Variable (2)

	
68,110.00

	
February 2036

	
 Class L2-M3

	
Regular

	
Variable (2)

	
41,840.00

	
February 2036

	
 Class L2-M4

	
Regular

	
Variable (2)

	
36,975.00

	
February 2036

	
 Class L2-M5

	
Regular

	
Variable (2)

	
36,000.00

	
February 2036

	
 Class L2-M6

	
Regular

	
Variable (2)

	
31,135.00

	
February 2036

	
 Class L2-M7

	
Regular

	
Variable (2)

	
28,215.00

	
February 2036

	
 Class L2-M8

	
Regular

	
Variable (2)

	
26,270.00

	
February 2036

	
 Class L2-M9

	
Regular

	
Variable (2)

	
19,460.00

	
February 2036

	
 Class L2-M10

	
Regular

	
Variable (2)

	
19,460.00

	
February 2036

	
 Class L2-M11

	
Regular

	
Variable (2)

	
19,460.00

	
February 2036

	
 Class L2-ZZ

	
Regular

	
Variable (2)

	
1,999,501.27

	
February 2036

	
 Class L2-SW

	
Regular

	
Variable (3)

	
-----

	
February 2036

	
Class L2-1-SB

	
Regular

	
Variable (2)

	
1,635.66

	
February 2036

	
Class L2-1-GP

	
Regular

	
Variable (4)

	
6,993.46

	
February 2036

	
Class L2-2-SB

	
Regular

	
Variable (2)

	
7,471.81

	
February 2036

	
Class L2-2-GP

	
Regular

	
Variable (5)

	
31,926.01

	
February 2036

	
Class L2-YY

	
Regular

	
Variable (2)

	
194,549,261.66

	
February 2036

	
Class R-2 (6)

	
Residual

	
 

	
------

	
February 2036

	
 

	
 

	
 

	
 

	
 

(1)           The
Distribution Date in the specified month, which is the month following the month the latest maturing Mortgage Loan in the related Loan Group (or Loan Groups, as applicable) matures.  For federal income tax purposes, for each Class of REMIC II Regular and
Residual Interests, the “latest possible maturity date” shall be the Assumed Final Maturity Date.

(2)           For each
Distribution Date, each of these REMIC II Regular Interests shall accrue interest at a per annum rate (but not less than zero) equal to the weighted average of: (x) the rates on Class L1-Y-X, L1-Z-X, and each REMIC I Regular Interest ending with
the designations “B” for such Distribution Date, (y) with respect to REMIC I Regular Interests ending with the designation “A”, for each Distribution Date from the second Distribution Date through the Rate Change Date for such REMIC I Regular
Interest, the lesser of (i) the product of 2 multiplied by Swap LIBOR, and (ii) the rate on such REMIC I Regular Interest, and (z) with respect to REMIC I Regular Interests ending with the designation “A”, for
the first Distribution Date and each Distribution Date after the Rate Change Date for such REMIC I Regular Interest, the rate on such REMIC I Regular Interest, in every case weighted on the basis of the Class Principal
Balances of each such REMIC I Regular Interest outstanding immediately before such Distribution Date.

(3)           Class L2-SW
shall accrue interest on its Uncertificated Notional Amount at a per annum rate equal to: (i) on the second Distribution Date through the 60th Distribution Date, the excess of (x) the weighted average of the rates for REMIC I Regular Interests
including the designation “A”, over (y) 2 multiplied by Swap LIBOR, and (ii) on the first Distribution Date and after the 60th Distribution Date, 0.00%.

(4)           For each
Distribution Date, REMIC II Regular Interest L2-1GP shall accrue interest at a per annum rate (but not less than zero) equal to the weighted average of: (x) the rates on REMIC I Regular Interest L1-Y-X and the REMIC I Group I Regular Interests
ending with the designation “B” for such Distribution Date, (y) with respect, (y) with respect to REMIC I Group I Regular Interests ending with the designation “A”, for each Distribution Date from the second Distribution Date through the Rate
Change Date for such REMIC I Regular Interest, the lesser of (i) the product of 2 multiplied by Swap LIBOR and (ii) the rate on such REMIC I Regular Interest, and (z) with respect to REMIC I Group I Regular Interests ending
with the designation “A”, for the first Distribution Date and each Distribution Date after the Rate Change Date for such REMIC I Regular Interest, the rate on such REMIC I Regular Interest, in every case
weighted on the basis of the Class Principal Balances of each such REMIC I Regular Interest for each such Distribution Date.

(5)           For each
Distribution Date, REMIC II Regular Interest L2-2GP shall accrue interest at a per annum rate (but not less than zero) equal to the weighted average of: (x) the rates on REMIC I Regular Interest L1-Z-X and the REMIC I Group II Regular Interests
ending with the designation “B” for such Distribution Date, (y) with respect, (y) with respect to REMIC I Group II Regular Interests ending with the designation “A”, for each Distribution Date from the second Distribution Date through the Rate
Change Date for such REMIC I Regular Interest, the lesser of (i) the product of 2 multiplied by Swap LIBOR and (ii) the rate on such REMIC I Regular Interest, and (z) with respect to REMIC I Group II Regular Interests
ending with the designation “A”, for the first Distribution Date and each Distribution Date after the Rate Change Date for such REMIC I Regular Interest, the rate on such REMIC I Regular Interest, in every case
weighted on the basis of the Class Principal Balances of each such REMIC I Regular Interest for each such Distribution Date.

(6)           The Class
R‐2 Residual Interest shall not be entitled to receive any distributions of interest or principal.

 

As provided herein, with respect to REMIC II, the Trustee will cause an election to be made on behalf of REMIC II to be treated
for federal income tax purposes as a REMIC. The REMIC II Regular Interests will be designated regular interests in REMIC II and the Class R-2 Residual Interest will be designated the sole class of residual interest in REMIC II, for purposes of the REMIC
Provisions.

REMIC III Interests

	

Class Designation for each Class of REMIC III Regular Interests and the Class R-3 Residual Interest

	

Type of Interest

	

Certificate Interest or Pass-Through

 Rate (2)

	

Initial Certificate

 Principal

 Balance

	

Assumed

 Final Maturity

 Date(1)

	
 Class 1-A-1

	
Regular

	
(3)

	
53,578,000.00

	
February 2036

	
 Class 2-A-1

	
Regular

	
(4)

	
136,504,000.00

	
February 2036

	
 Class 2-A-2

	
Regular

	
(5)

	
39,236,000.00

	
February 2036

	
 Class 2-A-3

	
Regular

	
(6)

	
47,111,000.00

	
February 2036

	
 Class 2-A-4

	
Regular

	
(7)

	
21,691,000.00

	
February 2036

	
 Class M-1

	
Regular

	
(8)

	
14,984,000.00

	
February 2036

	
 Class M-2

	
Regular

	
(9)

	
13,622,000.00

	
February 2036

	
 Class M-3

	
Regular

	
(10)

	
8,368,000.00

	
February 2036

	
 Class M-4

	
Regular

	
(11)

	
7,395,000.00

	
February 2036

	
 Class M-5

	
Regular

	
(12)

	
7,200,000.00

	
February 2036

	
 Class M-6

	
Regular

	
(13)

	
6,227,000.00

	
February 2036

	
 Class M-7

	
Regular

	
(14)

	
5,643,000.00

	
February 2036

	
 Class M-8

	
Regular

	
(15)

	
5,254,000.00

	
February 2036

	
 Class M-9

	
Regular

	
(16)

	
3,892,000.00

	
February 2036

	
 Class M-10

	
Regular

	
(17)

	
3,892,000.00

	
February 2036

	
 Class M-11

	
Regular

	
(18)

	
3,892,000.00

	
February 2036

	
 Class L3-C

	
Regular

	
(19)

	
10,705,577.20

	
February 2036

	
 Class L3-SW

	
Regular

	
(20)

	
------

	
February 2036

	
Class R-3

	
Residual

	
(21)

	
------

	
February 2036

	
 

	
 

	
 

	
 

	
 

(1)           The
Distribution Date in the specified month, which is the month following the month the latest maturing Mortgage Loan in the related Loan Group (or Loan Groups, as applicable) matures. For federal income tax purposes, for each Class of REMIC III Regular and Residual
Interests, the “latest possible maturity date” shall be the Assumed Final Maturity Date.

(2)           Indicates the
rate at which interest accrues for purposes of computing payments from REMIC III.  The Class A and Mezzanine Certificates are also entitled to certain payments made outside of REMIC III, described in Article 4 of this Agreement.  Also, some of the payments
made to the holder of the Class L3-C Regular Interest by REMIC III will be applied to pay amounts into the Reserve Fund and the Supplemental Interest Trust, as described in this Agreement.

(3)           On the first
Distribution Date, the Class I-A-1 Certificates shall accrue interest at LIBOR plus 0.170%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class I-A-1 Certificates shall accrue interest at a rate equal to the lesser of
(i) LIBOR plus 0.170 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class I-A-1 Certificates shall accrue interest at a rate equal to the lesser
of (i)  LIBOR plus 0.340 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(4)           On the first
Distribution Date, the Class II-A-1 Certificates shall accrue interest at LIBOR plus 0.070%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class II-A-1 Certificates shall accrue interest at a rate equal to the lesser of
(i)  LIBOR plus 0.070 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class II-A-1 Certificates shall accrue interest at a rate equal to the
lesser of (i)  LIBOR plus 0.140 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(5)           On the first
Distribution Date, the Class II-A-2 Certificates shall accrue interest at LIBOR plus 0.120%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class II-A-2 Certificates shall accrue interest at a rate equal to the lesser of
(i)  LIBOR plus 0.120 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class II-A-2 Certificates shall accrue interest at a rate equal to the
lesser of (i)  LIBOR plus 0.240 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(6)           On the first
Distribution Date, the Class II-A-3 Certificates shall accrue interest at LIBOR plus 0.180%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class II-A-3 Certificates shall accrue interest at a rate equal to the lesser of
(i)  LIBOR plus 0.180 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class II-A-3 Certificates shall accrue interest at a rate equal to the
lesser of (i) LIBOR plus 0.360 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(7)           On the first
Distribution Date, the Class II-A-4 Certificates shall accrue interest at LIBOR plus 0.280%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class II-A-4 Certificates shall accrue interest at a rate equal to the lesser of
(i)  LIBOR plus 0.280 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class II-A-4 Certificates shall accrue interest at a rate equal to the
lesser of (i)  LIBOR plus 0.560 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(8)           On the first
Distribution Date, the Class M-1 Certificates shall accrue interest at LIBOR plus 0.340%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class M-1 Certificates shall accrue interest at a rate equal to the lesser of
(i)  LIBOR plus 0.340 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class M-1 Certificates shall accrue interest at a rate equal to the
lesser of (i)  LIBOR plus 0.510 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(9)           On the first
Distribution Date, the Class M-2 Certificates shall accrue interest at LIBOR plus 0.360%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class M-2 Certificates shall accrue interest at a rate equal to the lesser of
(i)  LIBOR plus 0.360 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class M-2 Certificates shall accrue interest at a rate equal to the
lesser of (i)  LIBOR plus 0.540 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(10)         On the first Distribution
Date, the Class M-3 Certificates shall accrue interest at LIBOR plus 0.380%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class M-3 Certificates shall accrue interest at a rate equal to the lesser of (i)  LIBOR plus 0.380 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class M-3 Certificates shall accrue interest at a rate equal to the lesser of (i)
 LIBOR plus 0.570 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(11)         On the first Distribution
Date, the Class M-4 Certificates shall accrue interest at LIBOR plus 0.450%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class M-4 Certificates shall accrue interest at a rate equal to the lesser of (i)  LIBOR plus 0.450 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class M-4 Certificates shall accrue interest at a rate equal to the lesser of (i)
 LIBOR plus 0.675 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(12)         On the first Distribution
Date, the Class M-5 Certificates shall accrue interest at LIBOR plus 0.490%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class M-5 Certificates shall accrue interest at a rate equal to the lesser of (i)  LIBOR plus 0.490 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class M-5 Certificates shall accrue interest at a rate equal to the lesser of (i)
 LIBOR plus 0.735 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(13)         On the first Distribution
Date, the Class M-6 Certificates shall accrue interest at LIBOR plus 0.570%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class M-6 Certificates shall accrue interest at a rate equal to the lesser of (i)  LIBOR plus 0.570 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class M-6 Certificates shall accrue interest at a rate equal to the lesser of (i)
 LIBOR plus 0.835 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(14)         On the first Distribution
Date, the Class M-7 Certificates shall accrue interest at LIBOR plus 1.050%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class M-7 Certificates shall accrue interest at a rate equal to the lesser of (i)  LIBOR plus 1.050 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class M-7 Certificates shall accrue interest at a rate equal to the lesser of (i)
 LIBOR plus 1.575 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(15)         On the first Distribution
Date, the Class M-8 Certificates shall accrue interest at LIBOR plus 1.200%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class M-8 Certificates shall accrue interest at a rate equal to the lesser of (i)  LIBOR plus 1.200 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class M-8 Certificates shall accrue interest at a rate equal to the lesser of (i)
 LIBOR plus 1.800 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(16)         On the first Distribution
Date, the Class M-9 Certificates shall accrue interest at LIBOR plus 2.150%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class M-9 Certificates shall accrue interest at a rate equal to the lesser of (i)  LIBOR plus 2.150 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class M-9 Certificates shall accrue interest at a rate equal to the lesser of (i)
 LIBOR plus 3.225 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(17)         On the first Distribution
Date, the Class M-10 Certificates shall accrue interest at LIBOR plus 2.200%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class M-10 Certificates shall accrue interest at a rate equal to the lesser of (i)  LIBOR plus 2.200 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class M-10 Certificates shall accrue interest at a rate equal to the lesser of (i)
 LIBOR plus 3.300 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(18)         On the first Distribution
Date, the Class M-11 Certificates shall accrue interest at LIBOR plus 2.200%.  On each subsequent Distribution Date on or prior to the Optional Termination Date, the Class M-11 Certificates shall accrue interest at a rate equal to the lesser of (i)  LIBOR plus 2.200 and (ii) the related REMIC Net WAC Rate for such Distribution Date.  On each Distribution Date after the Optional Termination Date, the Class M-11 Certificates shall accrue interest at a rate equal to the lesser of (i)
 LIBOR plus 3.300 and (ii) the related REMIC Net WAC Rate for such Distribution Date.

(19)         TheClass L3-C Regular Interest shall accrue interest on the Class C Notional Amount at the rate determined under Annex A.

(20)         The Class L3-SW Regular Interest shall not have a interest rate, but will be entitled to 100% of the interest paid on the Class L2-SW Regular Interest. 

(21)         The Class R‐3
Residual Interest shall not be entitled to receive any distributions of interest or principal.

As provided herein, with respect to REMIC III, the Trustee will cause an election to be made on behalf of REMIC III to be treated for federal income
tax purposes as a REMIC. The REMIC III Regular Interests will be designated regular interests in REMIC III, and the Class R-3 Residual Interest will be designated the sole class of residual interest in REMIC III, for purposes of the REMIC Provisions.

REMIC IV Interests

	

Class Designation for each Class of REMIC IV Regular Interests and the Class R-4 Residual Interest

	

Type of Interest

	

Pass-Through Interest

 Rate

	

Initial Certificate

 Principal

 Balance

	

Assumed Final Maturity

 Date (1)

	
Class C Certificates

	
Regular

	
Variable (2)

	
10,705,577.20

	
February 2036

	
Class R-4

	
Residual

	
(3)

	
------

	
February 2036

	
 

	
 

	
 

	
 

	
 

(1)           The
Distribution Date in the specified month, which is the month following the month the latest maturing Mortgage Loan in the related Loan Group (or Loan Groups, as applicable) matures. For federal income tax purposes, for each Class of REMIC IV Regular and Residual
Interests, the “latest possible maturity date” shall be the Assumed Final Maturity Date.

(2)           The Class
C Certificates shall be entitled to receive 100% of the interest paid on the Class L3-C Regular Interest.

(3)           The Class
R-4 Residual Interest shall not be entitled to receive any distributions of interest or principal.

 

As provided herein, with respect to REMIC IV, the Trustee will cause an election to be made on behalf of REMIC IV to be treated for federal income tax purposes as a REMIC. The Class C
Certificates will be designated regular interests in REMIC IV, and the Class R-4 Residual Interest will be designated the sole class of residual interest in REMIC IV, for purposes of the REMIC Provisions.

REMIC V Interests

	

Class Designation for each Class of REMIC V Regular Interests and the Class R-5 Residual Interest

	

Type of Interest

	

Pass-Through Interest

 Rate

	

Initial Certificate

 Principal

 Balance

	

Assumed Final Maturity

 Date (1)

	
Class P Certificates

	
Regular

	
(2)

	
100.00

	
February 2036

	
Class R-5

	
Residual

	
(3)

	
------

	
February 2036

	
 

	
 

	
 

	
 

	
 

(1)           The
Distribution Date in the specified month, which is the month following the month the latest maturing Mortgage Loan in the related Loan Group (or Loan Groups, as applicable) matures. For federal income tax purposes, for each Class of REMIC V Regular and Residual
Interests, the “latest possible maturity date” shall be the Assumed Final Maturity Date.

(2)                 The Class P Certificates shall be entitled to receive 100% of the interest paid on the Class L1-P Regular Interest.  In addition, the Class P
Certificates shall be entitled to receive all amounts described in clause (b) of the definition of Assigned Prepayment Charges, but such amounts shall be treated as paid outside of REMIC V.

(3)                 The Class R-5 Residual Interest shall not be entitled to receive any distributions of interest or principal.

 

As provided herein, with respect to REMIC V, the Servicer will cause an election to be made on behalf of REMIC V to be treated
for federal income tax purposes as a REMIC. The Class C Certificates will be designated regular interests in REMIC V, and the Class R-5 Residual Interest will be designated the sole class of residual interest in REMIC V, for purposes of the REMIC
Provisions.

REMIC VI Interests

	

Class Designation for each Class of REMIC VI Regular Interests and the Class R-6 Residual Interest

	

Type of Interest

	

Certificate Interest

 Rate

	

Initial Class

 Principal

 Balance

	

Assumed Final Maturity

 Date (1)

	
Class L6-SW

	
Regular

	
(2)

	
----

	
February 2036

	
Class R-6

	
Residual

	
(3)

	
----

	
February 2036

	
 

	
 

	
 

	
 

	
 

(1)           The
Distribution Date in the specified month, which is the month following the month the latest maturing Mortgage Loan in the related Loan Group (or Loan Groups, as applicable) matures. For federal income tax purposes, for each Class of REMIC VI Regular and Residual
Interests, the “latest possible maturity date” shall be the Assumed Final Maturity Date.

(2)           The Class
L6-SW Regular Interest shall be entitled to receive 100% of the interest paid on the Class L3-SW Regular Interest.

(3)           The Class
R-6 Residual Interest shall not be entitled to receive any distributions of interest or principal.

 

As provided herein, with respect to REMIC VI, the Trustee will cause an election to be made on behalf of REMIC VI to be treated
for federal income tax purposes as a REMIC. The Class L6-SW Regular Interest will be designated regular interests in REMIC VI, and the Class R-6 Residual Interest will be designated the sole class of residual interest in REMIC VI, for purposes of the REMIC
Provisions.

In addition, the Trust will issue the Class R Certificates (which will represent ownership of the Class R-1, Class R-2 and Class
R-3 Residual Interests), the Class R-CX Certificates (which will represent the Class R-4 and Class R-6 Residual Interests) and the Class R-PX Certificates (which will represent the Class R-5 Residual Interest).

As of the Cut-Off Date, the Mortgage Loans have an aggregate Principal Balance of $389,194,677.20 and, as of the Closing Date
the Certificates have an aggregate Certificate Principal Balance of $389,194,677.20.

W I T N E S S E T H :

WHEREAS, the Company is a corporation duly organized and existing under and by virtue of the laws of the State of Delaware and
has full corporate power and authority to enter into this Agreement and to undertake the obligations undertaken by it herein;

WHEREAS, the Servicer is a federal savings association and has full power and authority to enter into this Agreement and to
undertake the obligations undertaken by it herein;

WHEREAS, the Trustee is a national banking association duly organized and existing under the laws of the United States of
America and has full power and authority to enter into this Agreement;

WHEREAS, the Delaware Trustee is a banking corporation duly organized and existing under the laws of the State of Delaware and
has full power and authority to enter into this Agreement;

WHEREAS, prior to the execution and delivery hereof, the Company and the Delaware Trustee have entered into the Original Trust
Agreement, and the Delaware Trustee has filed the Certificate of Trust;

WHEREAS, it is the intention of the Company, the Servicer, the Trustee and the Delaware Trustee that the Trust created by this
Agreement constitute a statutory trust under the Statutory Trust Statute, that this Agreement constitute the governing instrument of the Trust, and that this Agreement amend and restate the Original Trust Agreement;

WHEREAS, the Company is the owner of the Mortgage Loans identified in the Mortgage Loan Schedule hereto having Stated Principal
Balances on the Cut-Off Date as stated therein; and

WHEREAS, the Company has been duly authorized to create the Trust to (i) hold the Mortgage Loans and certain other property,
(ii) issue the REMIC I Regular Interests and the Class R-1 Residual Interest, (iii) hold the REMIC I Regular Interests (other than the Class L1-P), (iv) issue the REMIC II Regular Interests and the Class R-2 Residual Interest, (v) hold the REMIC II Regular Interests,
(vi) issue the Certificates (other than the Class C and Class P Certificates), the Class C Regular Interest, the Class L3-SW Regular Interest, and the Class R-3 Residual Interest, (vii) hold the Class C Regular Interest, (viii) issue the Class C Certificates and the
Class R-4 Residual Interest, (ix) hold the Class L1-P Regular Interest, (x) issue the Class P Certificates and the Class R-5 Residual Interest, (xi) hold the Class L3-SW Regular Interest, and (xii) issue the Class L6-SW Regular Interest and the Class R-6 Residual
Interest.

NOW, THEREFORE, in order to declare the terms and conditions upon which the REMIC I Regular Interests, the REMIC II Regular
Interests, the REMIC III Regular Interests, the Residual Interests and the Certificates are to be issued, and in consideration of the premises and of the purchase and acceptance of the Certificates by the Holders thereof, the Company covenants and agrees with the
Servicer, the Trustee and the Delaware Trustee, for the equal and proportionate benefit of the respective Holders from time to time of the REMIC I Regular Interests, the REMIC II Regular Interests, the REMIC III Regular Interests and the Certificates, as applicable,
as follows:

ARTICLE I

Definitions

Section 1.01          Defined Terms.

Whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the meanings
specified in this Article.  Unless otherwise specified, all calculations in respect of interest on the Class A Certificates and the Mezzanine Certificates shall be made on the basis of the actual number of days elapsed on the basis of a 360‐day year and
all other calculations of interest described herein shall be made on the basis of a 360‐day year consisting of twelve 30‐day months.  The Class P Certificates and the Residual Certificates are not entitled to distributions in respect of interest and,
accordingly, will not accrue interest.

Account:  Either of the Collection Account and Distribution Account.

Accrual Period:  With respect to the Class C Certificates, the REMIC I, REMIC II and REMIC III Regular Interests
and each Distribution Date, the calendar month prior to the month of such Distribution Date. With respect to the Class A Certificates and the Mezzanine Certificates, and each Distribution Date, the period commencing on the immediately preceding Distribution Date (or
in the case of the first such Accrual Period, commencing on the Closing Date) and ending on the day immediately preceding such Distribution Date.

Additional Termination Event:  As defined in the Swap Agreement.

Adjustable Rate Mortgage Loan:  A Mortgage Loan which provides for an adjustable Mortgage Rate payable with respect
thereto.

Adjusted Net Maximum Mortgage Rate:  With respect to any Mortgage Loan (or the related REO Property), as of any
Distribution Date, a per annum rate of interest equal to the Maximum Mortgage Rate for such Mortgage Loan (if such Mortgage Loan is an Adjustable Rate Mortgage Loan) or the Mortgage Rate for such Mortgage Loan (if such Mortgage Loan is a Fixed Rate Mortgage Loan), in
either case as of the first day of the month preceding the month in which such Distribution Date occurs, minus the sum of (i) the Servicing Fee Rate and (ii) the Trustee Fee Rate.

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

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

Advance:  As to any Mortgage Loan or REO Property, any advance made by the Servicer in respect of any Distribution
Date pursuant to Section 4.02.

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

Agreement:  The meaning specified in the introductory paragraph hereof.

Appraised Value:  With respect to any Mortgaged Property, the value thereof as determined by an appraisal made for the
originator of the related Mortgage Loan at the time of origination of such Mortgage Loan by an appraiser who met the minimum requirements of Fannie Mae.

Assigned Prepayment Charges:  For any Distribution Date, the sum of (a) all voluntary Prepayment Charges collected on the Mortgage Loans during
the Prepayment Period and (b) all payments received by the Servicer from the Seller during the Prepayment Period in respect of Prepayment Charges pursuant to Section 3.3(c) of the Mortgage Loan Purchase Agreement.

Assignment:  An assignment of Mortgage, notice of transfer or equivalent instrument, in recordable form (excepting
therefrom, if applicable, the mortgage recordation information which has not been required pursuant to this Agreement or returned by the applicable recorder’s office), which is sufficient under the laws of the jurisdiction in which the related Mortgaged
Property is located to reflect of record the sale of the Mortgage.

Authenticating Agent: Any authenticating agent appointed by the Trustee pursuant to Section 8.11.

Authorized Denomination: With respect to each Class of Certificates (other than the Class P Certificates and the Residual Certificates), an initial
Certificate Principal Balance equal to $25,000 and multiples of $1 in excess thereof.  The Residual Certificates and the Class P Certificates will be issued in fully registered form in minimum denominations of 20% of the Percentage Interest therein and
increments of 1% in excess thereof.

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

Bankruptcy Loss:  With respect to any Mortgage Loan, a Realized Loss resulting from a Deficient Valuation or Debt
Service Reduction.

Beneficial Holder:  A Person holding a beneficial interest in any Book-Entry Certificate as or through a DTC Participant or an Indirect DTC
Participant or a Person holding a beneficial interest in any Definitive Certificate.

Book-Entry Certificates:  The Class A Certificates and the Mezzanine Certificates, beneficial ownership and transfers
of which shall be made through book entries as described in Section 5.07.

Business Day:  Any day other than a Saturday, a Sunday or a day on which banking institutions in Stockton, California,
Chicago, Illinois, New York, New York, Seattle, Washington or any city in which the Corporate Trust Office is located are authorized or obligated by law or executive order to be closed.

Calculation Period:  As such term is defined in the Swap Agreement.

Certificate:  Any Regular Certificate or Residual Certificate.

Certificate Interest Rate: For each Class of REMIC I, REMIC II and REMIC III Regular Interests, and the Class L6-SW Regular Interest, the per
annum rate set forth as the Certificate Interest Rate for such Class in the Preliminary Statement hereto.

Certificate Margin:  For any Class of Certificates and any Distribution Date, the percentage added to LIBOR in the determination of the
Pass-Through Rate for such Class of Certificates on such Distribution Date, as set forth in the Preliminary Statement hereto.

Certificate of Trust: The certificate of trust filed with respect to the Trust with the Secretary of State in accordance with Section 3810(a) of the
Statutory Trust Statute.

Certificate Principal Balance:  With respect to any Class A Certificates, Mezzanine Certificates or Class P
Certificates immediately prior to any Distribution Date, an amount equal to the Initial Certificate Principal Balance thereof reduced by the sum of all amounts actually distributed in respect of principal of such Class and, in the case of a Mezzanine Certificate,
Realized Losses allocated thereto on all prior Distribution Dates and, in the case of a Mezzanine Certificate, increased by the Realized Losses reinstated thereto on all prior Distribution Dates due to Subsequent Recoveries.  With respect to any Class C
Certificates as of any date of determination, an amount equal to the Uncertificated Principal Balance of the Class C Interest.  The Residual Certificates will not have a Certificate Principal Balance.

Certificate Register and Certificate Registrar:  The register and the registrar appointed, respectively and maintained
pursuant to Section 5.03.

Certificateholder or Holder:  The Person in whose name a Certificate is registered in the Certificate Register, except that a Disqualified Organization or a Non‐United States Person shall not be a Holder of a Residual Certificate for any purposes hereof and,
solely for the purposes of giving any consent, direction or taking any other action pursuant to this Agreement, any Certificate registered in the name of the Company or the Servicer or any Affiliate thereof shall be deemed not to be outstanding and the Voting Rights
to which it is entitled shall not be taken into account in determining whether the requisite percentage of Voting Rights necessary to effect any such consent, direction or other action has been obtained, except as otherwise provided in the definition of “Tax
Matters Person.”  The Trustee and the NIMS Insurer may conclusively rely upon a certificate of the Company or the Servicer in determining whether a Certificate is held by an Affiliate thereof.  All references herein to “Holders” or
“Certificateholders” shall reflect the rights of Beneficial Holders as they may indirectly exercise such rights through DTC and DTC Participants, except as otherwise specified herein; provided, however, that the Trustee and the NIMS Insurer
shall be required to recognize as a “Holder” or “Certificateholder” only the Person in whose name a Certificate is registered in the Certificate Register.

Certification:  As defined in Section 4.08(b) hereof.

Class:  Collectively, Certificates which have the same priority of payment and bear the same class designation and the
form of which is identical except for variation in the Percentage Interest evidenced thereby. 

Class I-A Certificate:  Any one of the Class I-A Certificates as designated on the face thereof substantially in the
form annexed hereto as Exhibit A executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class II‐A‐1 Certificate:  Any one of the Class II‐A‐1 Certificates as designated on the face
thereof substantially in the form annexed hereto as Exhibit A executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class II‐A‐2 Certificate:  Any one of the Class II‐A‐2 Certificates as designated on the face
thereof substantially in the form annexed hereto as Exhibit A executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class II‐A‐3 Certificate:  Any one of the Class II‐A‐3 Certificates as designated on the face
thereof substantially in the form annexed hereto as Exhibit A executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class II‐A‐4 Certificate:  Any one of the Class II‐A‐4 Certificates as designated on the face
thereof substantially in the form annexed hereto as Exhibit A executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class A Certificates:  The Group I Senior Certificates and the Group II Senior Certificates.

Class A Principal Distribution Amount:  With respect to any Distribution Date, the sum of the Group I Senior Principal
Distribution Amount and the Group II Senior Principal Distribution Amount.

Class C Certificate:  Any one of the Class C Certificates as designated on the face thereof substantially in the form
annexed hereto as Exhibit A, executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC IV.

Class C NIM Payment Amount:  For any Distribution Date (I) on or before the date the NIM Notes are issued, zero, (II)
from the first Distribution Date after the date on which the NIM Notes are issued until the principal balance of the NIM Notes has been reduced to zero, the amount necessary to pay in full the NIM Notes as provided in the Indenture and to pay in full any amounts owed
to the NIMS Insurer as provided in the Indenture less the amounts payable to the Class C Certificates from the Reserve Fund on such Distribution Date and (III) thereafter, zero. 

Class C Shortfall:  As defined in Section 4.05(l) hereof.

Class M‐1 Certificate:  Any one of the Class M‐1 Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A, executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class M‐1 Principal Distribution Amount:  With respect to any Distribution Date on or after the Stepdown Date
and on which a Trigger Event is not in effect, the amount equal to the lesser of (I) the aggregate Certificate Principal Balance of the Class M‐1 Certificates immediately prior to such Distribution Date and (II) the excess of (x) the sum of (i) the
aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date) and (ii) the aggregate Certificate Principal Balance of the Class M‐1
Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 60.90% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance
of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related
Prepayment Period) minus the Overcollateralization Floor.

Class M-2 Certificate:  Any one of the Class  M-2 Certificates as designated on the face thereof substantially in
the form annexed hereto as Exhibit A, executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class M-2 Principal Distribution Amount:  With respect to any Distribution Date on or after the Stepdown Date and on
which a Trigger Event is not in effect, the amount equal to the lesser of (I) the aggregate Certificate Principal Balance of the Class M‐2 Certificates immediately prior to such Distribution Date and (II) the excess of (x) the sum of (i) the
aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the aggregate Certificate Principal Balance of the Class M‐1
Certificates (after taking into account the payment of the Class M‐1 Principal Distribution Amount on such Distribution Date) and (iii) the aggregate Certificate Principal Balance of the Class M‐2 Certificates immediately prior to such Distribution
Date over (y) the lesser of (A) the product of (i) 67.90% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) minus the Overcollateralization
Floor.

Class M-3 Certificate:  Any one of the Class M-3 Certificates as designated on the face thereof substantially in
the form annexed hereto as Exhibit A, executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class M-3 Principal Distribution Amount:  With respect to any Distribution Date on or after the Stepdown Date and on
which a Trigger Event is not in effect, the amount equal to the lesser of (I) the aggregate Certificate Principal Balance of the Class M‐3 Certificates immediately prior to such Distribution Date and (II) the excess of (x) the sum of (i) the
aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the aggregate Certificate Principal Balance of the Class M‐1
Certificates (after taking into account the payment of the Class M‐1 Principal Distribution Amount on such Distribution Date), (iii) the aggregate Certificate Principal Balance of the Class M‐2 Certificates (after taking into account the payment of
the Class M‐2 Principal Distribution Amount on such Distribution Date) and (iv) the aggregate Certificate Principal Balance of the Class M‐3 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of
(i) 72.20% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or
advanced, and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) minus the Overcollateralization Floor.

Class M‐4 Certificate:  Any one of the Class M‐4 Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A, executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class M‐4 Principal Distribution Amount:  With respect to any Distribution Date on or after the Stepdown Date
and on which a Trigger Event is not in effect, the amount equal to the lesser of (I) the aggregate Certificate Principal Balance of the Class M‐4 Certificates immediately prior to such Distribution Date and (II) the excess of (x) the sum of
(i) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the aggregate Certificate Principal Balance of the Class
M‐1 Certificates (after taking into account the payment of the Class M‐1 Principal Distribution Amount on such Distribution Date), (iii) the aggregate Certificate Principal Balance of the Class M‐2 Certificates (after taking into account the
payment of the Class M‐2 Principal Distribution Amount on such Distribution Date), (iv) the aggregate Certificate Principal Balance of the Class M‐3 Certificates (after taking into account the payment of the Class M‐3 Principal Distribution Amount
on such Distribution Date), and (v) the aggregate Certificate Principal Balance of the Class M‐4 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 76.00% and (ii) the
aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period,
to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) minus the Overcollateralization Floor.

Class M‐5 Certificate:  Any one of the Class M‐5 Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A, executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class M‐5 Principal Distribution Amount:  With respect to any Distribution Date on or after the Stepdown Date
and on which a Trigger Event is not in effect, the amount equal to the lesser of (I) the aggregate Certificate Principal Balance of the Class M‐5 Certificates immediately prior to such Distribution Date and (II) the excess of (x) the sum of
(i) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the aggregate Certificate Principal Balance of the Class
M‐1 Certificates (after taking into account the payment of the Class M‐1 Principal Distribution Amount on such Distribution Date), (iii) the aggregate Certificate Principal Balance of the Class M‐2 Certificates (after taking into account the
payment of the Class M‐2 Principal Distribution Amount on such Distribution Date), (iv) the aggregate Certificate Principal Balance of the Class M‐3 Certificates (after taking into account the payment of the Class M‐3 Principal Distribution Amount
on such Distribution Date), (v) the aggregate Certificate Principal Balance of the Class M‐4 Certificates (after taking into account the payment of the Class M‐4 Principal Distribution Amount on such Distribution Date) and (vi) the aggregate
Certificate Principal Balance of the Class M‐5 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 79.70% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as
of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) and
(B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) minus the Overcollateralization Floor.

Class M‐6 Certificate:  Any one of the Class M‐6 Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A, executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class M‐6 Principal Distribution Amount:  With respect to any Distribution Date on or after the Stepdown Date
and on which a Trigger Event is not in effect, the amount equal to the lesser of (I) the aggregate Certificate Principal Balance of the Class M‐6 Certificates immediately prior to such Distribution Date and (II) the excess of (x) the sum of
(i) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the aggregate Certificate Principal Balance of the Class
M‐1 Certificates (after taking into account the payment of the Class M‐1 Principal Distribution Amount on such Distribution Date), (iii) the aggregate Certificate Principal Balance of the Class M‐2 Certificates (after taking into account the
payment of the Class M‐2 Principal Distribution Amount on such Distribution Date), (iv) the aggregate Certificate Principal Balance of the Class M‐3 Certificates (after taking into account the payment of the Class M‐3 Principal Distribution Amount
on such Distribution Date), (v) the aggregate Certificate Principal Balance of the Class M‐4 Certificates (after taking into account the payment of the Class M‐4 Principal Distribution Amount on such Distribution Date), (vi) the aggregate Certificate
Principal Balance of the Class M‐5 Certificates (after taking into account the payment of the Class M‐5 Principal Distribution Amount on such Distribution Date) and (vii) the aggregate Certificate Principal Balance of the Class M‐6 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 82.90% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to
scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as
of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) minus the
Overcollateralization Floor.

Class M‐7 Certificate:  Any one of the Class M‐7 Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A, executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class M‐7 Principal Distribution Amount:  With respect to any Distribution Date on or after the Stepdown Date
and on which a Trigger Event is not in effect, the amount equal to the lesser of (I) the aggregate Certificate Principal Balance of the Class M‐7 Certificates immediately prior to such Distribution Date and (II) the excess of (x) the sum of
(i) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the aggregate Certificate Principal Balance of the Class
M‐1 Certificates (after taking into account the payment of the Class M‐1 Principal Distribution Amount on such Distribution Date), (iii) the aggregate Certificate Principal Balance of the Class M‐2 Certificates (after taking into account the
payment of the Class M‐2 Principal Distribution Amount on such Distribution Date), (iv) the aggregate Certificate Principal Balance of the Class M‐3 Certificates (after taking into account the payment of the Class M‐3 Principal Distribution Amount
on such Distribution Date), (v) the aggregate Certificate Principal Balance of the Class M‐4 Certificates (after taking into account the payment of the Class M‐4 Principal Distribution Amount on such Distribution Date), (vi) the aggregate Certificate
Principal Balance of the Class M‐5 Certificates (after taking into account the payment of the Class M‐5 Principal Distribution Amount on such Distribution Date), (vii) the aggregate Certificate Principal Balance of the Class M‐6 Certificates (after
taking into account the payment of the Class M‐6 Principal Distribution Amount on such Distribution Date) and (viii) the aggregate Certificate Principal Balance of the Class M‐7 Certificates immediately prior to such Distribution Date over (y) the
lesser of (A) the product of (i) 85.80% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due
Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving
effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) minus the Overcollateralization Floor.

Class M-8 Certificate:  Any one of the Class  M-8 Certificates as designated on the face thereof substantially in
the form annexed hereto as Exhibit A, executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class M-8 Principal Distribution Amount:  With respect to any Distribution Date on or after the Stepdown Date and on
which a Trigger Event is not in effect, the amount equal to the lesser of (I) the aggregate Certificate Principal Balance of the Class M-8 Certificates immediately prior to such Distribution Date and (II) the excess of (x) the sum of (i) the
aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the aggregate Certificate Principal Balance of the Class M‐1
Certificates (after taking into account the payment of the Class M‐1 Principal Distribution Amount on such Distribution Date), (iii) the aggregate Certificate Principal Balance of the Class M‐2 Certificates (after taking into account the payment of
the Class M‐2 Principal Distribution Amount on such Distribution Date), (iv) the aggregate Certificate Principal Balance of the Class M‐3 Certificates (after taking into account the payment of the Class M‐3 Principal Distribution Amount on such
Distribution Date), (v) the aggregate Certificate Principal Balance of the Class M‐4 Certificates (after taking into account the payment of the Class M‐4 Principal Distribution Amount on such Distribution Date), (vi) the aggregate Certificate
Principal Balance of the Class M‐5 Certificates (after taking into account the payment of the Class M‐5 Principal Distribution Amount on such Distribution Date), (vii) the aggregate Certificate Principal Balance of the Class M‐6 Certificates (after
taking into account the payment of the Class M‐6 Principal Distribution Amount on such Distribution Date), (viii) the aggregate Certificate Principal Balance of the Class M‐7 Certificates (after taking into account the payment of the Class M‐7
Principal Distribution Amount on such Distribution Date) and (ix) the aggregate Certificate Principal Balance of the Class M-8 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 88.50% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due
during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) minus the Overcollateralization Floor.

Class M-9 Certificate:  Any one of the Class M‐9 Certificates as designated on the face thereof substantially in
the form annexed hereto as Exhibit A, executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class M-9 Principal Distribution Amount:  With respect to any Distribution Date on or after the Stepdown Date and on
which a Trigger Event is not in effect, the amount equal to the lesser of (I) the aggregate Certificate Principal Balance of the Class M-9 Certificates immediately prior to such Distribution Date and (II) the excess of (x) the sum of (i) the
aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the aggregate Certificate Principal Balance of the Class M‐1
Certificates (after taking into account the payment of the Class M‐1 Principal Distribution Amount on such Distribution Date), (iii) the aggregate Certificate Principal Balance of the Class M‐2 Certificates (after taking into account the payment of
the Class M‐2 Principal Distribution Amount on such Distribution Date), (iv) the aggregate Certificate Principal Balance of the Class M‐3 Certificates (after taking into account the payment of the Class M‐3 Principal Distribution Amount on such
Distribution Date), (v) the aggregate Certificate Principal Balance of the Class M‐4 Certificates (after taking into account the payment of the Class M‐4 Principal Distribution Amount on such Distribution Date), (vi) the aggregate Certificate
Principal Balance of the Class M‐5 Certificates (after taking into account the payment of the Class M‐5 Principal Distribution Amount on such Distribution Date), (vii) the aggregate Certificate Principal Balance of the Class M‐6 Certificates (after
taking into account the payment of the Class M‐6 Principal Distribution Amount on such Distribution Date), (viii) the aggregate Certificate Principal Balance of the Class M‐7 Certificates (after taking into account the payment of the Class M‐7
Principal Distribution Amount on such Distribution Date), (ix) the aggregate Certificate Principal Balance of the Class M‐8 Certificates (after taking into account the payment of the Class M‐8 Principal Distribution Amount on such Distribution Date) and
(x) the aggregate Certificate Principal Balance of the Class M-9 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 90.50% and (ii) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment Period) minus the Overcollateralization Floor.

Class M‐10 Certificate:  Any one of the Class M‐10 Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A, executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class M‐10 Principal Distribution Amount:  With respect to any Distribution Date on or after the Stepdown Date
and on which a Trigger Event is not in effect, the amount equal to the lesser of (I) the aggregate Certificate Principal Balance of the Class M‐10 Certificates immediately prior to such Distribution Date and (II) the excess of (x) the sum of (i) the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the aggregate Certificate Principal Balance of the Class M‐1 Certificates (after
taking into account the payment of the Class M‐1 Principal Distribution Amount on such Distribution Date), (iii) the aggregate Certificate Principal Balance of the Class M‐2 Certificates (after taking into account the payment of the Class M‐2
Principal Distribution Amount on such Distribution Date), (iv) the aggregate Certificate Principal Balance of the Class M‐3 Certificates (after taking into account the payment of the Class M‐3 Principal Distribution Amount on such Distribution Date), (v)
the aggregate Certificate Principal Balance of the Class M‐4 Certificates (after taking into account the payment of the Class M‐4 Principal Distribution Amount on such Distribution Date), (vi) the aggregate Certificate Principal Balance of the Class
M‐5 Certificates (after taking into account the payment of the Class M‐5 Principal Distribution Amount on such Distribution Date), (vii) the aggregate Certificate Principal Balance of the Class M‐6 Certificates (after taking into account the payment
of the Class M‐6 Principal Distribution Amount on such Distribution Date), (viii) the aggregate Certificate Principal Balance of the Class M‐7 Certificates (after taking into account the payment of the Class M‐7 Principal Distribution Amount on such
Distribution Date), (ix) the aggregate Certificate Principal Balance of the Class M‐8 Certificates (after taking into account the payment of the Class M‐8 Principal Distribution Amount on such Distribution Date), (x) the aggregate Certificate Principal
Balance of the Class M‐9 Certificates (after taking into account the payment of the Class M‐9 Principal Distribution Amount on such Distribution Date), and (xi) the aggregate Certificate Principal Balance of the Class M‐10 Certificates immediately
prior to such Distribution Date over (y) the lesser of (A) the product of (i) 92.50% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the
related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) minus the Overcollateralization
Floor.

Class M‐11 Certificate:  Any one of the Class M-11 Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit A, executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC III.

Class M‐11 Principal Distribution Amount:  With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger
Event is not in effect, the amount equal to the lesser of (I) the aggregate Certificate Principal Balance of the Class M‐11 Certificates immediately prior to such Distribution Date and (II) the excess of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the aggregate Certificate Principal Balance of the Class M‐1 Certificates (after taking into account the
payment of the Class M‐1 Principal Distribution Amount on such Distribution Date), (iii) the aggregate Certificate Principal Balance of the Class M‐2 Certificates (after taking into account the payment of the Class M‐2 Principal Distribution Amount
on such Distribution Date), (iv) the aggregate Certificate Principal Balance of the Class M‐3 Certificates (after taking into account the payment of the Class M‐3 Principal Distribution Amount on such Distribution Date), (v) the aggregate Certificate
Principal Balance of the Class M‐4 Certificates (after taking into account the payment of the Class M‐4 Principal Distribution Amount on such Distribution Date), (vi) the aggregate Certificate Principal Balance of the Class M‐5 Certificates (after
taking into account the payment of the Class M‐5 Principal Distribution Amount on such Distribution Date), (vii) the aggregate Certificate Principal Balance of the Class M‐6 Certificates (after taking into account the payment of the Class M‐6
Principal Distribution Amount on such Distribution Date), (viii) the aggregate Certificate Principal Balance of the Class M‐7 Certificates (after taking into account the payment of the Class M‐7 Principal Distribution Amount on such Distribution Date),
(ix) the aggregate Certificate Principal Balance of the Class M‐8 Certificates (after taking into account the payment of the Class M‐8 Principal Distribution Amount on such Distribution Date), (x) the aggregate Certificate Principal Balance of the Class
M‐9 Certificates (after taking into account the payment of the Class M‐9 Principal Distribution Amount on such Distribution Date), (xi) the aggregate Certificate Principal Balance of the Class M‐10 Certificates (after taking into account the payment
of the Class M‐10 Principal Distribution Amount on such Distribution Date) and (xii) the aggregate Certificate Principal Balance of the Class M‐11 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i)
94.50% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) minus the Overcollateralization Floor.

Class P Certificate:  Any one of the Class P Certificates as designated on the face thereof substantially in the form
annexed hereto as Exhibit A, executed, authenticated and delivered by the Trustee, representing the right to distributions as set forth herein and therein and evidencing a regular interest in REMIC PX.

Class P Interest:  An uncertificated interest in the Trust Fund held by the Trustee on behalf of the Holders of the
Class P Certificates, evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

Class Principal Balance:  With respect to each Regular Interest, the principal amount of such Regular Interest
outstanding as of any date of determination.  As of the Closing Date, the Class Principal Balance of each Regular Interest shall equal the amount set forth in the Preliminary Statement hereto as its initial Class Principal Balance.  On each Distribution
Date, the Class Principal Balance of each Regular Interest shall be reduced by all distributions of principal made on such Regular Interest on such Distribution Date pursuant to the definition of REMIC I, REMIC II or REMIC III Distribution Amount, as applicable and,
if and to the extent necessary and appropriate, shall be further reduced on such Distribution Date by Realized Losses allocated to such Class and increased by Subsequent Recoveries allocated to such Class, and the Class Principal Balance of the Class L2-ZZ Regular
Interest shall be increased by interest deferrals as provided in paragraph (a)(ii) of the definition of REMIC II Distribution Amount.  The Class Principal Balance of each Regular Interest that has a Class Principal Balance shall never be less than
zero. 

Class R Certificate:  Any one of the Class R Certificates as designated on the face thereof substantially in the form
annexed hereto as Exhibit B, executed, authenticated and delivered by the Trustee, evidencing the ownership of the Class R‐1 Interest, the Class R‐2 Interest and the Class R‐3 Interest.

Class R‐1 Interest:  The Residual Interest in REMIC I.

Class R‐2 Interest:  The Residual Interest in REMIC II.

Class R‐3 Interest:  The Residual Interest in REMIC III.

Class R‐4 Interest:  The Residual Interest in REMIC IV.

Class R‐5 Interest:  The Residual Interest in REMIC V.

Class R‐6 Interest:  The Residual Interest in REMIC VI.

Class R‐CX Certificate:  Any one of the Class R‐CX Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit B, executed, authenticated and delivered by the Trustee, evidencing the ownership of the Class R‐CX Interest and the Class R‐SwapX Interest.

Class R‐PX Certificate:  Any one of the Class R‐PX Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit B, executed, authenticated and delivered by the Trustee, evidencing the ownership of the Class R‐PX Interest.

Class L1-Y-X Regular Interest:  The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I Regular Interest and is
entitled to distributions as set forth herein.

Class L1-Y-A Regular Interests:  Any of fifty-five uncertificated undivided beneficial interests in REMIC I which constitute REMIC I Regular
Interests and are entitled to distributions as set forth herein.

Class L1-Y-B Regular Interests:  Any of fifty-five uncertificated undivided beneficial interests in REMIC I which constitute REMIC I Regular
Interests and are entitled to distributions as set forth herein.

Class L1-Z-X Regular Interest:  The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I Regular Interest and is
entitled to distributions as set forth herein.

Class L1-Z-A Regular Interests:  Any of fifty-five uncertificated undivided beneficial interests in REMIC I which constitute REMIC I Regular
Interests and are entitled to distributions as set forth herein.

Class L1-Z-B Regular Interests:  Any of fifty-five uncertificated undivided beneficial interests in REMIC I which constitute REMIC I Regular
Interests and are entitled to distributions as set forth herein.

Class L1-P Regular Interest:  The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I Regular Interest and is
entitled to distributions as set forth herein.

Class L2-1-A1 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-A1 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-A2 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-A3 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-A4 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-M1 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-M2 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-M3 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-M4 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-M5 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-M6 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-M7 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-M8 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-M9 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-M10 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and
is entitled to distributions as set forth herein.

Class L2-2-M11 Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and
is entitled to distributions as set forth herein.

Class L2-1-GP Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-1-SB Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-GP Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-2-SB Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-SW Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-XX Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-YY Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L2-ZZ Regular Interest:  The uncertificated undivided beneficial interest in REMIC II which constitutes a REMIC II Regular Interest and is
entitled to distributions as set forth herein.

Class L3-C Regular Interest: The uncertificated undivided beneficial interest in REMIC III which constitutes a REMIC III Regular Interest and is
entitled to distributions as set forth herein.

Class L3-SW Regular Interest: The uncertificated undivided beneficial interest in REMIC III which constitutes a REMIC III Regular Interest and is
entitled to distributions as set forth herein.

Class L6-SW Regular Interest: The uncertificated undivided beneficial interest in REMIC VI which constitutes a regular interest in REMIC VI and is
entitled to distributions as set forth herein.

Clean-up Call Percentage:  10%.

Clearing Agency: An organization registered as a “clearing agency” pursuant to Section 17A of the Securities Exchange Act of 1934, as
amended, which initially shall be DTC.

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

Closing Date:  April 20, 2006.

Closing Date Mortgage Loans:  The Group I Closing Date Mortgage Loans and the Group II Closing Date Mortgage
Loans. 

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

Collection Account:  The account or accounts created and maintained by the Servicer pursuant to Section 3.10(a)
with an Eligible Institution, which shall be entitled “Washington Mutual Bank, as Servicer, in trust for holders of Washington Mutual Asset-Backed Certificates, WMABS, Series 2006‐HE1.”

Commission:  The Securities and Exchange Commission.

Company:  The meaning specified in the introductory paragraph hereof.

Compensating Interest:  As defined in Section 3.24.

Corporate Trust Office:  The corporate trust office of the Trustee, at which at any particular time its corporate
trust business with respect to this Agreement shall be administered, which office at the date of the execution of this Agreement is located at 135 South LaSalle Street, Suite 1625, Chicago, Illinois, 60603, Attention: Global Securities and Trust Services –
WMABS Series 2006-HE1. 

Corporation:  Any Person (other than an individual, partnership, joint venture or unincorporated organization) incorporated, associated,
organized, chartered or existing under the laws of any state or under the federal laws of the United States of America; provided, that such Person have indefinite existence under the law of its domicile. 

Corresponding Certificates:  As shown on the following chart:

	
REMIC II

	
REMIC III

	
Class L2-1-A1

	
Class I-A-1

	
Class L2-2-A1

	
Class II-A-1

	
Class L2-2-A2

	
Class II-A-2

	
Class L2-2-A3

	
Class II-A-3

	
Class L2-2-A4

	
Class II-A-4

	
Class L2-M1

	
Class M-1

	
Class L2-M2

	
Class M-2

	
Class L2-M3

	
Class M-3

	
Class L2-M4

	
Class M-4

	
Class L2-M5

	
Class M-5

	
Class L2-M6

	
Class M-6

	
Class L2-M7

	
Class M-7

	
Class L2-M8

	
Class M-8

	
Class L2-M9

	
Class M-9

	
Class L2-M10

	
Class M-10

	
Class L2-M11

	
Class M-11

 

In addition, the Class L1-P Regular Interest shall be a Corresponding Class to the Class P Certificates, and the Class L3-C Regular Interest shall be a Corresponding Class to the Class C
Certificates.

Counterparty Payment:  With respect to any Distribution Date, an amount equal to the product of (i) USD-LIBOR-BBA for
such Distribution Date, (ii) the Swap Notional Amount for such Distribution Date and (iii) a fraction, the numerator of which is the actual number of days elapsed in the related Calculation Period and the denominator of which is 360.

Credit Enhancement Percentage:  With respect to any Distribution Date, the percentage equivalent of a fraction, the
numerator of which is (x) the sum of the aggregate Certificate Principal Balance of the Mezzanine Certificates and the Class Principal Balance of the Class L3-C Regular Interest, calculated prior to distribution of the Group I Principal Distribution Amount and
the Group II Principal Distribution Amount in respect of the Certificates then entitled to distributions of principal on such Distribution Date, and the denominator of which is (y) the aggregate Stated Principal Balance of the Mortgage Loans, calculated prior to
taking into account payments of principal on the Mortgage Loans due on the related Due Date or received during the related Prepayment Period. 

Cumulative Loss Trigger Event:  A Cumulative Loss Trigger Event has occurred with respect to any Distribution Date in
or after May 2008, if the percentage obtained by dividing (x) the aggregate amount of Realized Losses incurred (less any Subsequent Recoveries) with respect to the Mortgage Loans from the Cut-off Date through the last day of the related Due Period by
(y) the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date, exceeds the applicable percentage set forth below for such Distribution Date:

	
Distribution Date Occurring in

	
Cumulative Loss Percentage

	
May 2008 through April 2009

	
1.35% for the first month, plus an additional 1/12th of 1.70% for each month
thereafter.

	
May 2009 through April 2010

	
3.05% for the first month, plus an additional 1/12th of 1.75% for each month
thereafter.

	
May 2010 through April 2011

	
4.80% for the first month, plus an additional 1/12th of 1.40% for each month
thereafter.

	
May 2011 through April 2012

	
6.20% for the first month, plus an additional 1/12th of 0.55% for each month
thereafter.

	
May 2012 and thereafter

	
6.75% for each month.

 

Custodial Agreement:  The agreement, if any, between the Trustee and a Custodian (or the Trustee, a Custodian and the
Servicer) providing for the safekeeping of the Mortgage Files on behalf of the Trust.

Custodian:  Any custodian which is appointed by the Trustee with the consent of the Servicer, as provided in Article
II hereof, pursuant to a Custodial Agreement. Any Custodian so appointed shall act as agent on behalf of the Trustee.  The reasonable fees and expenses of the Custodian shall be paid by the Servicer.

Cut‐off Date:  With respect to each Closing Date Mortgage Loan, April 1, 2006; and with respect to each
Qualified Substitute Mortgage Loan, its date of substitution, as applicable.

Cut‐off Date Aggregate Principal Balance:  The aggregate of the Cut‐off Date Principal Balances of the
Mortgage Loans.

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

Debt Service Reduction:  With respect to any Mortgage Loan, a reduction in the scheduled Monthly Payment for such
Mortgage Loan by a court of competent jurisdiction in a proceeding under the Bankruptcy Code, except such a reduction resulting from a Deficient Valuation.

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

Definitive Certificates:  Certificates in definitive, fully registered and certificated form.

Delaware Trustee:  Christiana Bank & Trust Company, or its successor-in-interest as provided in Section 8.09, or any successor trustee
appointed as herein provided.

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

Delinquency Percentage:  With respect to any Distribution Date, the percentage obtained by dividing (x) the
aggregate Stated Principal Balance of (i) Mortgage Loans Delinquent 60 days or more, (ii) REO Properties related to the Mortgage Loans and (iii) Mortgage Loans in foreclosure and in bankruptcy (excluding any such Mortgage Loans which are less than 60 days Delinquent
under the bankruptcy plan) by (y) the aggregate Stated Principal Balance of the Mortgage Loans, in each case, calculated prior to taking into account payments of principal on the Mortgage Loans due on the related Due Date or received during the related
Prepayment Period. 

Delinquency Trigger Event:  A Delinquency Trigger Event has occurred with respect to a Distribution Date if the
Delinquency Percentage exceeds 34.00% of the Credit Enhancement Percentage.

Delinquent:  With respect to any Mortgage Loan and related Monthly Payment, the Monthly Payment due on a Due Date
which is not made by the Close of Business on the next scheduled Due Date for such Mortgage Loan.  For example, a Mortgage Loan is 60 or more days Delinquent if the Monthly Payment due on a Due Date is not made by the Close of Business on the second scheduled
Due Date after such Due Date.

Depositary Agreement:  The Letter of Representations, dated April 19, 2006 by and among DTC, the Trust and the Trustee. The Trustee is authorized
to enter into the Depositary Agreement on behalf of the Trust.

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

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

Disqualified Organization:  Any Person which is not a Permitted Transferee, but does not include any Pass-Through
Entity which owns or holds a Residual Certificate and of which a Disqualified Organization, directly or indirectly, may be a stockholder, partner or beneficiary.

Distribution Account:  The trust account or accounts created and maintained by the Trustee pursuant to
Section 3.10(b) with itself or an Eligible Institution which shall be entitled “LaSalle Bank National Association, as Trustee, in trust for the holders of Washington Mutual Asset-Backed Certificates, WMABS, Series 2006‐HE1.”

Distribution Date:  The 25th day of any calendar month, or if such 25th day is not a Business Day, the Business Day
immediately following such 25th day, commencing in May 2006.

DTC:  The Depository Trust Company.

DTC Participant:  A Person for whom DTC effects book-entry transfers and pledges of securities deposited with DTC.

Due Date:  With respect to each Distribution Date, the first day of the calendar month in which such Distribution Date
occurs, which is the day of the month on which the Monthly Payment is due on a Mortgage Loan, exclusive of any days of grace.

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

Early Termination Date:  As defined in the Swap Agreement.

Eligible Institution: An institution having (i) the highest short-term debt rating, and one of the two highest long-term debt ratings, of the
Rating Agencies, (ii) with respect to any Collection Account, an unsecured long-term debt rating of at least one of the two highest unsecured long-term debt ratings of the Rating Agencies, or (iii) the approval of the Rating Agencies. Notwithstanding the foregoing,
Washington Mutual Bank shall be an “Eligible Institution” if the following conditions are satisfied: (i) Washington Mutual Bank is acting as Servicer, (ii) if S&P is a Rating Agency as defined herein, the long-term unsecured debt obligations of
Washington Mutual Bank are rated no lower than “A-” by S&P and the short-term unsecured debt obligations of Washington Mutual Bank are rated no lower than “A-2” by S&P, (iii) if Fitch is a Rating Agency as defined herein, the long-term
unsecured debt obligations of Washington Mutual Bank are rated no lower than “A” by Fitch and the short-term unsecured debt obligations of Washington Mutual Bank are rated no lower than “F1” by Fitch and (iv) if Moody’s is a Rating
Agency as defined herein, the long-term unsecured debt obligations of Washington Mutual Bank are rated no lower than “A2” by Moody’s and the short-term unsecured debt obligations of Washington Mutual Bank are rated no lower than “P-1” by
Moody’s; provided, that if the long-term or short-term unsecured debt obligations of Washington Mutual Bank are downgraded by any of the Rating Agencies to a rating lower than the applicable rating specified in this sentence, Washington Mutual Bank shall
cease to be an “Eligible Institution” ten Business Days after it receives notification of such downgrade.

Eligible Investments: The investment property or other property listed below:

(i)                  Obligations of, or guaranteed as to principal and interest by, the United States or any agency or instrumentality thereof when such obligations
are backed by the full faith and credit of the United States;

(ii)                Repurchase agreements on obligations described in clause (i) of this definition of “Eligible Investments,” provided that the unsecured
obligations of the party (including the institution acting as Trustee) agreeing to repurchase such obligations have at the time one of the two highest short term debt ratings  of the Rating Agencies and provided that such repurchaser’s unsecured long term
debt has one of the two highest unsecured long term debt ratings of the Rating Agencies;

(iii)              
Federal funds, certificates of deposit, time deposits and bankers’ acceptances of the institution acting as Trustee or any bank or trust company incorporated under the laws of the United States or any state, provided that the debt obligations of such bank or
trust company (or, in the case of the principal bank in a bank holding company system, debt obligations of the bank holding company) at the date of acquisition thereof have one of the two highest short term debt ratings of the Rating Agencies and unsecured long term
debt has one of the two highest unsecured long term debt ratings of the Rating Agencies;

(iv)             
Obligations of, or obligations guaranteed by, any state of the United States or the District of Columbia, provided that such obligations at the date of acquisition thereof shall have the highest long-term debt ratings available for such securities from the Rating
Agencies;

(v)                Commercial paper of any corporation incorporated under the laws of the United States or any state thereof, which on the date of acquisition has the highest
commercial paper rating of the Rating Agencies, provided that the corporation has unsecured long term debt that has one of the two highest unsecured long term debt ratings of the Rating Agencies;

(vi)             
Securities (other than stripped bonds or stripped coupons) bearing interest or sold at a discount that are issued by any corporation incorporated under the laws of the United States or any state thereof and have the highest long-term unsecured rating available for
such securities from the Rating Agencies; provided, however, that securities issued by any such corporation will not be Eligible Investments to the extent that investment therein would cause the outstanding principal amount of securities issued by such corporation
that are then held as part of the Investment Account or the Distribution Account to exceed 20% of the aggregate principal amount of all Eligible Investments then held in the Investment Account and the Distribution Account; and

(vii)             Units of
taxable money market funds (which may be 12b-1 funds, as contemplated under the rules promulgated by the Commission under the Investment Company Act of 1940), which funds have the highest rating available for such securities from the Rating Agencies or which have
been designated in writing by the Rating Agencies as Eligible Investments;

provided, however, that such investment property or other property is held for a temporary period pursuant to Section 1.860G-2(g)(1) of the Treasury Regulations, and that
such period can in no event exceed thirteen months.

In no event shall an instrument or security be an Eligible Investment if such instrument or security (a) evidences a right to receive only interest payments with respect to the obligations
underlying such instrument or (b) has been purchased at a price greater than the outstanding principal balance of such instrument.

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

Escrow Payments:  As defined in Section 3.09 hereof.

Event of Default:  One or more of the events described in Section 7.01.

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

Extra Principal Distribution Amount:  With respect to any Distribution Date, the lesser of (x) the Net Monthly
Excess Cashflow for such Distribution Date and (y) the Overcollateralization Deficiency Amount for such Distribution Date.

Extraordinary Trust Fund Expense:  Any amounts payable from the Distribution Account in respect of taxes pursuant to
Section 2.06, 2.12, 2.16, 2.19, or 2.22, any amounts payable from the Distribution Account in respect of any REMIC pursuant to Section 3.11, and any amounts payable from the Trust Fund as a trustee fee for any successor trustee.

Fannie Mae:  The Federal National Mortgage Association and any successor thereto.

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

Final Recovery Determination:  With respect to any defaulted Mortgage Loan or any REO Property (other than a Mortgage
Loan or REO Property purchased by the Seller or the Servicer pursuant to or as contemplated by Section 2.08, Section 3.16(c) or Section 9.01), a determination made by the Servicer that all Insurance Proceeds, Liquidation Proceeds and other payments or recoveries
which the Servicer, in its reasonable good faith judgment, expects to be finally recoverable in respect thereof have been so recovered.  The Servicer shall maintain records, prepared by a Servicing Officer, of each Final Recovery Determination made thereby.

Fitch:  Fitch Ratings, Inc.

Fixed Rate Mortgage Loan:  A Mortgage Loan which provides for a fixed Mortgage Rate payable with respect thereto.

Formula Rate:  For any Distribution Date and the Class A Certificates and the Mezzanine Certificates, the lesser of
(x) LIBOR plus the related Certificate Margin and (y) the related Maximum Cap Rate. 

Freddie Mac:  The Federal Home Loan Mortgage Corporation and any successor thereto.

Gross Margin:  With respect to each Adjustable Rate Mortgage Loan, the fixed percentage set forth in the related
Mortgage Note that is added to the Index on each Adjustment Date in accordance with the terms of the related Mortgage Note used to determine the Mortgage Rate for such Mortgage Loan.

Gross Subsequent Recoveries:  Any unexpected recoveries related to a Liquidated Mortgage Loan received by the Servicer
which were allocated as a Realized Loss in reducing a Certificate Principal Balance of a Class of the Mezzanine Certificates on a Distribution Date prior to the Prepayment Period in which such funds were received.  Gross Subsequent Recoveries may include but are
not limited to unanticipated insurance settlements, tax refunds or mortgage bankruptcy distributions.

Group I Closing Date Mortgage Loans:  Any of the Group I Mortgage Loans included in the Trust Fund on the Closing
Date.  The aggregate Cut-off Date Principal Balance of the Group I Closing Date Mortgage Loans is equal to $69,934,572.97.

Group I Interest Remittance Amount:  With respect to any Distribution Date, that portion of the REMIC I Available
Distribution Amount for such Distribution Date attributable to interest received or advanced with respect to the Group I Mortgage Loans or to Compensating Interest paid by the Servicer with respect to the Group I Mortgage Loans.

Group I Mortgage Loans:  Those Mortgage Loans identified as Group I Mortgage Loans on the Mortgage Loan
Schedule.

Group I Net Swap Payment:  With respect to any Distribution Date, the Net Swap Payment for such Distribution Date
multiplied by the Group I Swap Percentage for such Distribution Date.

Group I Principal Allocation Percentage:  With respect to any Distribution Date, the percentage equivalent of a
fraction, the numerator of which is (x) the Group I Principal Remittance Amount for such Distribution Date, and the denominator of which is (y) the Principal Remittance Amount for such Distribution Date.

Group I Principal Distribution Amount:  With respect to any Distribution Date, the sum of (i) (x) the Group I
Principal Remittance Amount minus (y) the amount of any Overcollateralization Release Amount for such Distribution Date multiplied by the Group I Principal Allocation Percentage, and (ii) the Extra Principal Distribution Amount multiplied by the Group I Principal
Allocation Percentage for such Distribution Date.

Group I Principal Remittance Amount:  With respect to any Distribution Date, the sum of (i) all scheduled payments of
principal collected or advanced on the Group I Mortgage Loans by the Servicer that were due during the related Due Period, (ii) all partial and full principal prepayments of the Group I Mortgage Loans applied by the Servicer during the related Prepayment
Period, (iii) the principal portion of all Net Liquidation Proceeds, Insurance Proceeds and Gross Subsequent Recoveries received during the related Prepayment Period with respect to the Group I Mortgage Loans, (iv) that portion of the Purchase Price,
representing principal of any repurchased Group I Mortgage Loan, deposited to the Collection Account during the related Prepayment Period, (v) the principal portion of any Substitution Adjustments deposited in the Collection Account during the related Prepayment
Period with respect to the Group I Mortgage Loans and (vi) on the Distribution Date on which the Trust is to be terminated in accordance with this Agreement, that portion of the Termination Price representing principal with respect to the Group I Mortgage
Loans.

Group I Senior Certificates:  The Class I-A Certificates.

Group I Senior Principal Distribution Amount:  With respect to any Distribution Date, the amount equal to the lesser
of (I) the aggregate Certificate Principal Balance of the Group I Senior Certificates immediately prior to such Distribution Date and (II) the excess of (x) the aggregate Certificate Principal Balance of the Group I Senior Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 53.20% and (ii) the aggregate Stated Principal Balance of the Group I Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Group I Mortgage Loans as of the last day of
the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) minus 0.50% of the aggregate
Stated Principal Balance of the Group I Mortgage Loans as of the Cut-off Date.

Group I Swap Payment:  With respect to any Distribution Date, the Swap Payment for such Distribution Date multiplied
by the Group I Swap Percentage for such Distribution Date.

Group I Swap Percentage:  With respect to any Distribution Date, the percentage equivalent of a fraction, the
numerator of which is the aggregate Stated Principal Balance of the Group I Mortgage Loans and the denominator of which is the aggregate Stated Principal Balance of the Mortgage Loans, in each case, as of the last day of the related Due Period (after giving effect to
scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period).

Group I Swap Termination Payment:  The Swap Termination Payment payable by the Supplemental Interest Trust multiplied
by the Group I Swap Percentage for such Distribution Date.

Group II Closing Date Mortgage Loans:  Any of the Group II Mortgage Loans included in the Trust Fund on the
Closing Date.  The aggregate Cut-off Date Principal Balance of the Group II Closing Date Mortgage Loans is equal to $319,260,104.23.

Group II Interest Remittance Amount:  With respect to any Distribution Date, that portion of the REMIC I Available
Distribution Amount for such Distribution Date attributable to interest received or advanced with respect to the Group II Mortgage Loans or to Compensating Interest paid by the Servicer with respect to the Group II Mortgage Loans.

Group II Mortgage Loans:  Those Mortgage Loans identified as Group II Mortgage Loans on the Mortgage Loan
Schedule.

Group II Net Swap Payment:  With respect to any Distribution Date, the Net Swap Payment for such Distribution Date
multiplied by the Group II Swap Percentage for such Distribution Date.

Group II Principal Allocation Percentage:  With respect to any Distribution Date, the percentage equivalent of a
fraction, the numerator of which is (x) the Group II Principal Remittance Amount for such Distribution Date, and the denominator of which is (y) the Principal Remittance Amount for such Distribution Date.

Group II Principal Distribution Amount:  With respect to any Distribution Date, the sum of (i) (x) the Group II
Principal Remittance Amount minus (y) the amount of any Overcollateralization Release Amount for such Distribution Date multiplied by the Group II Principal Allocation Percentage, and (ii) the Extra Principal Distribution Amount multiplied by the Group II Principal
Allocation Percentage for such Distribution Date.

Group II Principal Remittance Amount:  With respect to any Distribution Date, the sum of (i) all scheduled payments of
principal collected or advanced on the Group II Mortgage Loans by the Servicer that were due during the related Due Period, (ii) all partial and full principal prepayments of the Group II Mortgage Loans applied by the Servicer during the related Prepayment
Period, (iii) the principal portion of all Net Liquidation Proceeds, Insurance Proceeds and Gross Subsequent Recoveries received during the related Prepayment Period with respect to the Group II Mortgage Loans, (iv) that portion of the Purchase Price,
representing principal of any repurchased Group II Mortgage Loan, deposited to the Collection Account during the related Prepayment Period, (v) the principal portion of any Substitution Adjustments deposited in the Collection Account during the related
Prepayment Period with respect to the Group II Mortgage Loans and (vi) on the Distribution Date on which the Trust is to be terminated in accordance with this Agreement, that portion of the Termination Price representing principal with respect to the
Group II Mortgage Loans.

Group II Senior Certificates:  The Class II‐A‐1 Certificates, the Class II‐A‐2 Certificates,
the Class II‐A‐3 Certificates and the Class II‐A‐4 Certificates.

Group II Senior Principal Distribution Amount:  With respect to any Distribution Date on or after the Stepdown Date
and on which a Trigger Event is not in effect, the amount equal to the lesser of (I) the aggregate Certificate Principal Balance of the Group II Senior Certificates immediately prior to such Distribution Date and (II) the excess of (x) the aggregate Certificate
Principal Balance of the Group II Senior Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 53.20% and (ii) the aggregate Stated Principal Balance of the Group II Mortgage
Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period)
and (B) the aggregate Stated Principal Balance of the Group II Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment Period) minus 0.50% of the aggregate Stated Principal Balance of the Group II Mortgage Loans as of the Cut-off Date.

Group II Swap Payment:  With respect to any Distribution Date, the Swap Payment for such Distribution Date multiplied
by the Group II Swap Percentage for such Distribution Date.

Group II Swap Percentage:  With respect to any Distribution Date, the percentage equivalent of a fraction, the
numerator of which is the aggregate Stated Principal Balance of the Group II Mortgage Loans and the denominator of which is the aggregate Stated Principal Balance of the Mortgage Loans, in each case,  as of the last day of the related Due Period (after giving
effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period).

Group II Swap Termination Payment:  The Swap Termination Payment payable by the Supplemental Interest Trust multiplied
by the Group II Swap Percentage for such Distribution Date.

Indenture:  The indenture or a document of similar import, if any, entered into following the Closing Date, by the
NIMS Issuer relating to the NIM Notes to be issued thereunder.

Independent:  When used with respect to any specified Person, any such Person who (a) is in fact independent of
the Company, the Servicer and their respective Affiliates, (b) does not have any direct financial interest in or any material indirect financial interest in the Company or the Servicer or any Affiliate thereof, and (c) is not connected with the Company or
the Servicer or any Affiliate thereof as an officer, employee, promoter, underwriter, trustee, trust administrator, partner, director or Person performing similar functions; provided, however, that a Person shall not fail to be Independent of the
Company or the Servicer or any Affiliate thereof merely because such Person is the beneficial owner of 1% or less of any class of securities issued by the Company or the Servicer or any Affiliate thereof, as the case may be.

Independent Contractor:  Either (i) any Person (other than the Servicer) that would be an “independent
contractor” with respect to any of the REMICs created hereunder within the meaning of Section 856(d)(3) of the Code if such REMIC were a real estate investment trust (except that the ownership tests set forth in that Section shall be considered to be
met by any Person that owns, directly or indirectly, 35% or more of any Class of Certificates), so long as each such REMIC does not receive or derive any income from such Person and provided that the relationship between such Person and such REMIC is at
arm’s length, all within the meaning of Treasury Regulation Section 1.856‐4(b)(5), or (ii) any other Person (including the Servicer) if the Trustee has received an Opinion of Counsel to the effect that the taking of any action in respect of any
REO Property by such Person, subject to any conditions therein specified, that is otherwise herein contemplated to be taken by an Independent Contractor will not cause such REO Property to cease to qualify as “foreclosure property” within the meaning of
Section 860G(a)(8) of the Code (determined without regard to the exception applicable for purposes of Section 860D(a) of the Code), or cause any income realized in respect of such REO Property to fail to qualify as Rents from Real Property.

Index:  With respect to each Adjustable Rate Mortgage Loan and with respect to each related Adjustment Date, the index
as specified in the related Mortgage Note.

Initial Certificate Principal Balance:  With respect to any Regular Certificate, the amount designated “Initial
Certificate Principal Balance” on the face thereof.

Initial Notional Amount:  With respect to any Class C Certificate, the amount designated “Initial Notional
Amount” on the face thereof.

Insurance Proceeds:  Proceeds of any title policy, hazard policy or other insurance policy covering a Mortgage Loan or
the related Mortgaged Property, to the extent such proceeds are not (i) to be applied to the restoration of the related Mortgaged Property or released to the Mortgagor in accordance with the procedures that the Servicer would follow in servicing mortgage loans held
for its own account, subject to the terms and conditions of the related Mortgage Note and Mortgage or (ii) Gross Subsequent Recoveries with respect to such Mortgage Loan.

Insured NIM Notes:  Net interest margin securities, if any, issued by the NIMS Issuer, which are backed, in whole or
in part, by the cashflow on certain or all of the Class C Certificates and the Class P Certificates and insured by the NIMS Insurer.

Interest Determination Date:  With respect to the Class A Certificates and the Mezzanine Certificates and each Accrual
Period, the second LIBOR Business Day preceding the commencement of such Accrual Period.

Interest Distribution Amount:  For any Distribution Date, for any Class of REMIC I Regular Interests, REMIC II Regular Interests, REMIC III
Regular Interests, and the Class L6-SW Regular Interest, the amount of interest accrued during the related Accrual Period, at the related Certificate Interest Rate for such Class for such Distribution Date, on the respective Class Principal Balance or Class Notional
Amount immediately before such Distribution Date, reduced by Uncompensated Interest Shortfall and the interest portion of Realized Losses allocated to such Class on such Distribution Date pursuant to the definitions of “Uncompensated Interest Shortfall”
and “Realized Loss,” respectively.

Interest Remittance Amount:  The Group I Interest Remittance Amount and the Group II Interest Remittance Amount.

Late Collections:  With respect to any Mortgage Loan, all amounts received subsequent to the Determination Date
immediately following any related Due Period, whether as late payments of Monthly Payments or as Insurance Proceeds, Liquidation Proceeds, Gross Subsequent Recoveries or otherwise, which represent late payments or collections of principal and/or interest due (without
regard to any acceleration of payments under the related Mortgage and Mortgage Note) but delinquent on a contractual basis for such Due Period and not previously recovered.

LIBOR:  With respect to each Accrual Period, the rate determined by the Trustee on the related Interest Determination
Date on the basis of the “Interest Settlement Rate” for United States dollar deposits of one‐month maturity set forth by the British Bankers’ Association (the “BBA”), as such rate appears on the Telerate Page 3750, as of
11:00 a.m. (London time) on such Interest Determination Date.  With respect to any Interest Determination Date, if the BBA’s Interest Settlement Rate does not appear on Telerate Page 3750 as of 11:00 a.m. (London time) on such date, or if Telerate Page
3750 is not available on such date the Trustee will obtain such rate from Reuters Monitor Money Rates Service page “LIBOR01” or Bloomberg L.P. page “BBAM.”  Alternatively, the Trustee may request the principal London office of each of the
Reference Banks to provide a quotation of its rate.  On such Interest Determination Date, LIBOR for the related Accrual Period will be established by the Trustee as follows:

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

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

The Trustee will select a particular index as the alternative index only if it receives an Opinion of Counsel that the selection of such index will not cause any REMIC to lose its
classification as a REMIC for federal income tax purposes.

LIBOR Business Day:  Any day on which banks in The City of London, England and New York City are open for conducting
transactions in foreign currency and exchange.

Liquidated Mortgage Loan:  As to any Distribution Date, any Mortgage Loan in respect of which the Servicer has
determined, in accordance with the servicing procedures specified herein, as of the end of the related Prepayment Period, that all Liquidation Proceeds which it expects to recover with respect to the liquidation of the Mortgage Loan or disposition of the related REO
Property have been recovered.

Liquidation Event:  With respect to any Mortgage Loan, any of the following events: (i) such Mortgage Loan is
paid in full; (ii) a Final Recovery Determination is made as to such Mortgage Loan or (iii) such Mortgage Loan is removed from the Trust Fund by reason of its being purchased, sold or replaced pursuant to or as contemplated by Section 2.08, Section
3.16(c) or Section 9.01.  With respect to any REO Property, either of the following events:  (i) a Final Recovery Determination is made as to such REO Property or (ii) such REO Property is removed from the Trust Fund by reason of its being
sold or purchased pursuant to Section 3.16(c), Section 3.23 or Section 9.01.

Liquidation Proceeds:  The amount (other than amounts received in respect of the rental of any REO Property prior to
REO Disposition) received by the Servicer in connection with (i) the taking of all or a part of a Mortgaged Property by exercise of the power of eminent domain or condemnation, (ii) the liquidation of a defaulted Mortgage Loan by means of a trustee’s
sale, foreclosure sale or otherwise or (iii) the repurchase, substitution or sale of a Mortgage Loan or an REO Property pursuant to or as contemplated by Section 2.08, Section 3.16(c), Section 3.23 or Section 9.01.

Loan Group:  Either Loan Group I or Loan Group II.

Loan Group I:  All of the Group I Mortgage Loans collectively.

Loan Group II:  All of the Group II Mortgage Loans collectively.

Loan‐to‐Value Ratio:  As of any date and as to any Mortgage Loan, the fraction, expressed as a percentage,
the numerator of which is the (x) Principal Balance of the Mortgage Loan (if such Mortgage Loan is secured by a first lien on the related Mortgaged Property) or the sum of the Principal Balance of the Mortgage Loan and any other mortgage loan secured by a senior
lien on the related Mortgaged Property (if such Mortgage Loan is secured by a junior lien on the related Mortgaged Property) and the denominator of which is (y) the Value of the related Mortgaged Property.

Lost Note Affidavit:  With respect to any Mortgage Loan as to which the original Mortgage Note has been permanently
lost or destroyed and has not been replaced, an affidavit from the Seller certifying that the original Mortgage Note has been lost or destroyed (together with a copy of the related Mortgage Note and indemnifying the Trust against any loss, cost or liability resulting
from the failure to deliver the original Mortgage Note) in the form of Exhibit C hereto.

Maximum Cap Rate: 

For any Distribution Date and the Group I Senior Certificates, a per annum rate equal to (a) the product of (i) the weighted average of the Adjusted Net Maximum Mortgage Rates of the Group I
Mortgage Loans, weighted on the basis of the Stated Principal Balances thereof as of the Due Date in the month preceding the month of such Distribution Date (adjusted for amounts included in the Group I Principal Remittance Amount on any prior Distribution Date) and
(ii) the sum of (I) a fraction (1) the numerator of which is the aggregate Stated Principal Balance of the Mortgage Loans as of the Due Date in the month preceding the month of such Distribution Date, and (2) the denominator of which is aggregate Certificate
Principal Balance of the Class A Certificates and the Mezzanine Certificates immediately prior to such Distribution Date, and (II) a fraction (1) the numerator of which is (A) any Net Counterparty Payment for such Distribution Date less (B) any unpaid Swap
Termination Payment payable by the Supplemental Interest Trust, including any amount remaining unpaid from prior Distribution Dates (unless the Swap Counterparty is the Defaulting Party or the sole Affected Party (each, as defined in the Swap Agreement)), less (C)
the Net Swap Payment, if any, for such Distribution Date, in each case multiplied by 12, and (2) the denominator of which is the aggregate Certificate Principal Balance of the Class A Certificates and the Mezzanine Certificates immediately prior to such Distribution
Date multiplied by (b) a fraction, the numerator of which is 30 and the denominator of which is the actual number of days elapsed in the related Accrual Period.

For any Distribution Date and the Group II Senior Certificates, a per annum rate equal to (a) the product of (i) the weighted average of the Adjusted Net Maximum Mortgage Rates of the Group II
Mortgage Loans, weighted on the basis of the Stated Principal Balances thereof as of the Due Date in the month preceding the month of such Distribution Date (adjusted for amounts included in the Group II Principal Remittance Amount on any prior Distribution Date) and
(ii) the sum of (I) a fraction (1) the numerator of which is the aggregate Stated Principal Balance of the Mortgage Loans as of the Due Date in the month preceding the month of such Distribution Date, and (2) the denominator of which is aggregate Certificate
Principal Balance of the Class A Certificates and the Mezzanine Certificates and the Class B Certificates immediately prior to such Distribution Date, and (II) a fraction (1) the numerator of which is (A) any Net Counterparty Payment for such Distribution Date less
(B) any unpaid Swap Termination Payment payable by the Supplemental Interest Trust, including any amount remaining unpaid from prior Distribution Dates (unless the Swap Counterparty is the Defaulting Party or the sole Affected Party (each, as defined in the Swap
Agreement)), less (C) the Net Swap Payment, if any, for such Distribution Date, in each case multiplied by 12, and (2) the denominator of which is the aggregate Certificate Principal Balance of the Class A Certificates and the Mezzanine Certificates immediately prior
to such Distribution Date multiplied by (b) a fraction, the numerator of which is 30 and the denominator of which is the actual number of days elapsed in the related Accrual Period.

For any Distribution Date and the Mezzanine Certificates, a per annum rate equal to the weighted average (weighted on the basis of the results of subtracting from the aggregate principal
balance of each Loan Group as of the Due Date in the month preceding the month of such Distribution Date (adjusted for Principal Prepayments in full distributed on a prior Distribution Date) the sum of the current Certificate Principal Balances of the related classes
of the Class A Certificates) of (1) the Maximum Cap Rate with respect to the Group I Senior Certificates and (2) the Maximum Cap Rate with respect to the Group II Senior Certificates.

Maximum ZZ Uncertificated Accrued Interest Deferral Amount: With respect to any Distribution
Date, the excess of (i) Interest Distribution Amount calculated with the Certificate Interest Rate for the Class L2-ZZ Regular Interest and a Class Principal Balance equal to the excess of (x) the Class Balance of the Class L2-ZZ Regular Interest over (y) the REMIC
II Overcollateralized Amount, in each case for such Distribution Date, over (ii) Interest Distribution Amount on the Class L2-1-A1, L2-2-A1, L2-2-A2, L2-2-A3, L2-2-A4, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8, L2-M9, L2-M10, and L2-M11 Regular
Interests, with the rate on each such Regular Interest subject to a floor and a cap equal to the lesser of (i) LIBOR plus the Certificate Margin for the Corresponding Certificate for such Regular Interest, and (ii) the REMIC Net WAC Rate Corresponding Certificates;
provided, however, that for this purpose, calculations of the Certificate Interest Rate and the related caps with respect to all of the Regular Interests shall be multiplied by a fraction, the numerator of which is the actual number of days in the
Accrual Period and the denominator of which is 30.

Maximum Mortgage Rate:  With respect to each Mortgage Loan, the percentage set forth in the related Mortgage Note as
the maximum Mortgage Rate thereunder.

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

MERS Loan:  Any Mortgage Loan registered on the MERS® System for which MERS appears as the mortgagee of record on the related Mortgage or on
an assignment thereof.

MERS® System:  The system of recording transfers of Mortgages maintained by MERS.

Mezzanine Certificates:  The Class M‐1 Certificates, the Class M-2 Certificates, the Class M-3 Certificates, the
Class M‐4 Certificates, the Class M-5 Certificates, the Class M‐6 Certificates, the Class M-7 Certificates, the Class M-8 Certificates, the Class M‐9 Certificates, the Class M‐10 Certificates and the Class M-11 Certificates.

MIN:  The Mortgage Identification Number for a MERS Loan.

Minimum Mortgage Rate:  With respect to each Mortgage Loan, the percentage set forth in the related Mortgage Note as
the minimum Mortgage Rate thereunder.

MOM Loan:  A MERS Loan that was registered on the MERS® System at the time of origination thereof and for which
MERS appears as the mortgagee of record on the related Mortgage.

Monthly Interest Distributable Amount:  With respect to any Distribution Date and the Class A Certificates and the
Mezzanine Certificates, the amount of interest accrued during the related Accrual Period at the related Pass-Through Rate on the Certificate Principal Balance of such Class immediately prior to such Distribution Date.  With respect to the Class C Certificates
and any Distribution Date, the Monthly Interest Distributable Amount shall equal the Interest Distribution Amount for the Class L3-C Regular Interest.

In all cases, the Monthly Interest Distributable Amount for any Class of Certificates shall be reduced by any Net Prepayment Interest Shortfalls and Relief Act Interest Shortfalls allocated to
such Class under Section 1.03.

Monthly Payment:  With respect to any Mortgage Loan, the scheduled monthly payment of principal and interest on such
Mortgage Loan which is payable by the related Mortgagor from time to time under the related Mortgage Note, determined:  (a) after giving effect to (i) any Deficient Valuation and/or Debt Service Reduction with respect to such Mortgage Loan and
(ii) any reduction in the amount of interest collectible from the related Mortgagor pursuant to the Relief Act; (b) without giving effect to any extension granted or agreed to by the Servicer pursuant to Sections 3.01 and 3.07; and (c) on the
assumption that all other amounts, if any, due under such Mortgage Loan are paid when due.

Moody’s:  Moody’s Investors Service, Inc.

Mortgage:  The mortgage, deed of trust or other instrument creating a first lien or second lien on, or first priority
security interest in or second priority security interest in, a Mortgaged Property securing a Mortgage Note.

Mortgage File:  The following mortgage documents pertaining to a particular Mortgage Loan and any additional documents
required to be added to the Mortgage File pursuant to this Agreement:

(a)        the original Mortgage Note, endorsed in blank or in the following form:  “Pay to the order of LaSalle Bank National Association, as
Trustee under the applicable agreement, without recourse,” with all prior and intervening endorsements showing a complete chain of endorsement from the originator to the Person so endorsing to the Trustee or (in the case of not more than 1.00% of the Mortgage
Loans, by aggregate principal balance as of the Cut‐off Date) a copy of such original Mortgage Note with an accompanying Lost Note Affidavit executed by the Seller;

(b)        the original Mortgage, noting the presence of the MIN of the Mortgage Loan and language indicating that the Mortgage Loan is a MOM Loan if the
Mortgage Loan is a MOM loan, with evidence of recording thereon, and a copy, certified by the appropriate recording office, of the recorded power of attorney, if the Mortgage was executed pursuant to a power of attorney, with evidence of recording thereon;

(c)        unless the Mortgage Loan is registered on the MERS® System, an original Assignment in blank;

(d)        the original recorded Assignment or Assignments showing a complete chain of assignment from the originator to the Person assigning the Mortgage to
the Trustee or in blank (or to MERS, if the Mortgage Loan is registered on the MERS® System and noting the presence of the MIN) as contemplated by the immediately preceding clause (c);

(e)        the original or copies of each assumption, modification, written assurance or substitution agreement, if any; and

(f)         the original or a copy of lender’s title insurance policy, together with all endorsements or riders issued with or subsequent to the
issuance of such policy, insuring the priority of the Mortgage as a first or second lien on the Mortgaged Property represented therein as a fee interest vested in the Mortgagor, or in the event such title policy is unavailable, a written commitment or uniform binder
or preliminary report of title issued by the title insurance or escrow company.

Mortgage Loan:  Each mortgage loan transferred and assigned to the Trustee and delivered to the Trustee or another
Custodian pursuant to Section 2.04 as from time to time held as a part of the Trust Fund, the Mortgage Loans so held being identified in the Mortgage Loan Schedule.

Mortgage Loan Purchase Agreement:  The Mortgage Loan Purchase and Sale Agreement, dated as of April 20, 2006, between
the Company and Washington Mutual Mortgage Securities Corp., as supplemented and amended by the Term Sheet, dated the Closing Date, between the Company and Washington Mutual Mortgage Securities Corp. and relating to the Certificates.

Mortgage Loan Schedule:  As of any date, the list of Mortgage Loans included in REMIC I on such date, attached hereto
as Exhibit D.  The Mortgage Loan Schedule shall be prepared by the Company and shall set forth the following information as of the Cut‐off Date with respect to each Mortgage Loan, as applicable:

(i)           the Mortgagor’s name and the originator’s Mortgage Loan identifying number;

(ii)           the street address of the Mortgaged Property including the state and zip code;

(iii)          a code indicating whether the Mortgaged Property is owner‐occupied;

(iv)          the type of Residential Dwelling constituting the Mortgaged Property;

(v)          the original months to maturity;

(vi)          the Loan‐to‐Value Ratio and the combined Loan‐to‐Value Ratio at
origination;

(vii)         the Mortgage Rate in effect immediately following the Cut‐off Date;

(viii)        the date on which the first Monthly Payment was due on the Mortgage Loan;

(ix)          the stated maturity date;

(x)          the amount of the Monthly Payment due on the first Due Date after the Cut‐off Date;

(xi)          the last Due Date on which a Monthly Payment was actually applied to the unpaid Stated Principal
Balance;

(xii)         the original principal amount of the Mortgage Loan;

(xiii)        the Stated Principal Balance of the Mortgage Loan as of the Close of Business on the Cut‐off Date;

(xiv)        whether such Mortgage Loan is a Fixed Rate Mortgage Loan or an Adjustable Rate Mortgage Loan, and with respect to each
Adjustable Rate Mortgage Loan:  (a) the Gross Margin, (b) the Maximum Mortgage Rate, (c) the Minimum Mortgage Rate, (d) the Periodic Rate Cap for the first Adjustment Date and each subsequent Adjustment Date and (e) the next Adjustment Date
immediately following the Cut‐off Date;

(xv)         a code indicating the purpose of the Mortgage Loan (i.e., purchase financing, rate/term refinancing,
cash‐out refinancing);

(xvi)        the Mortgage Rate at origination;

(xvii)       a code indicating the documentation program;

(xviii)      the Seller’s risk grade and the FICO score;

(xix)        the Origination Value of the Mortgaged Property;

(xx)         the sale price of the Mortgaged Property, if applicable;

(xxi)        whether such Mortgage Loan is secured by a first lien or a second lien on the related Mortgaged Property;

(xxii)       the date of origination;

(xxiii)      the stated remaining months to maturity as of the Cut‐off Date;

(xxiv)      the current principal and interest payment of the Mortgage Loan as of the Cut‐off Date;

(xxv)       the interest “paid to date” of the Mortgage Loan as of the Cut‐off Date;

(xxvi)      a code indicating whether the Mortgage Loan is a Group I Mortgage Loan or a Group II Mortgage Loan;

(xxvii)     a code indicating the Index that is associated with such Mortgage Loan (if such Mortgage Loan is an Adjustable Rate Mortgage
Loan);

(xxviii)     the rate adjustment frequency (if such Mortgage Loan is an Adjustable Rate Mortgage Loan);

(xxix)      the number of years the prepayment penalty is in effect; and

(xxx)       with respect to each MOM Loan, the related MIN.

The Mortgage Loan Schedule shall set forth the following information, with respect to the Mortgage Loans in the aggregate as of the Cut‐off Date:  (1) the number of Mortgage
Loans; (2) the Cut‐off Date Principal Balance of the Mortgage Loans; (3) the weighted average Mortgage Rate of the Mortgage Loans and (4) the weighted average maturity of the Mortgage Loans.  The Mortgage Loan Schedule shall be amended from
time to time by the Servicer in accordance with the provisions of this Agreement.  With respect to any Qualified Substitute Mortgage Loan, Cut‐off Date shall refer to the related Cut‐off Date for such Mortgage Loan, determined in accordance with the
definition of Cut‐off Date herein.  The Mortgage Loan Schedule shall clearly identify the Mortgage Loans that are included in Group I Mortgage Loans and those that are included in Group II Mortgage Loans.

Mortgage Note:  The note or other evidence of the indebtedness of a Mortgagor under a Mortgage Loan.

Mortgage Pool:  The pool of Mortgage Loans, identified on Exhibit D from time to time, and any REO Properties
acquired in respect thereof.

Mortgage Pool Assets: (i) The Mortgage Loans (including all Qualified Substitute Mortgage Loans) identified on the Mortgage Loan Schedule, and all
rights pertaining thereto, and all Monthly Payments due after the Cut-Off Date and all other payments and distributions collected with respect to the Mortgage Loans on or after the Cut-Off Date; (ii) the Distribution Account, the Investment Account, the
Supplemental Interest Account, the Reserve Fund and all money, instruments, investment property, and other property credited thereto, carried therein, or deposited therein (except amounts constituting the Servicing Fee); (iii) the Collection Account, and all
money, instruments, investment property, and other property credited thereto, carried therein, or deposited therein (except amounts constituting the Servicing Fee); (iv) any REO Property; and (v) the Swap Agreements.

Mortgage Rate:  With respect to each Fixed Rate Mortgage Loan, the annual rate set forth in the related Mortgage Note,
as amended, modified or supplemented from time to time.  With respect to each Adjustable Rate Mortgage Loan, the annual rate at which interest accrues on such Mortgage Loan from time to time in accordance with the provisions of the related Mortgage Note, which
rate (A) as of any date of determination until the first Adjustment Date following the Cut‐off Date shall be the rate set forth in the Mortgage Loan Schedule as the Mortgage Rate in effect immediately following the Cut‐off Date and (B) as
of any date of determination thereafter shall be the rate as adjusted on the most recent Adjustment Date, to equal the sum, rounded to the next highest or nearest 0.125% (as provided in the Mortgage Note), of the Index, determined as set forth in the related Mortgage
Note, plus the related Gross Margin subject to the limitations set forth in the related Mortgage Note.  With respect to each Mortgage Loan that becomes an REO Property, as of any date of determination, the annual rate determined in accordance with the
immediately preceding sentence as of the date such Mortgage Loan became an REO Property.

Mortgaged Property:  The underlying property securing a Mortgage Loan, including any REO Property, consisting of a fee
simple or leasehold estate in a parcel of real property improved by a Residential Dwelling.

Mortgagor:  The obligor on a Mortgage Note.

Net Counterparty Payment:  With respect to any Distribution Date, the amount, if any, by which the Counterparty
Payment for such Distribution Date exceeds the Swap Payment for such Distribution Date.

Net Liquidation Proceeds:  With respect to any Liquidated Mortgage Loan or any other disposition of related Mortgaged
Property (including REO Property), the related Liquidation Proceeds net of Advances, Servicing Advances, Servicing Fees and any other servicing fees received and retained in connection with the liquidation of such Mortgage Loan or Mortgaged Property in accordance
with the terms of this Agreement.

Net Monthly Excess Cashflow:  With respect to each Distribution Date, the sum of (a) any
Overcollateralization Release Amount for such Distribution Date, (b) any Remaining Principal Distribution Amount and (c) the positive excess of (x) the REMIC III Available Distribution Amount for such Distribution Date over (y) the sum for such Distribution Date of
(A) Monthly Interest Distributable Amounts for the Class A Certificates and the Mezzanine Certificates, (B) the Unpaid Interest Shortfall Amounts for the Class A Certificates, (C) the Interest Distribution Amount for the Class L3-SW Interest, (D) any unpaid Swap
Termination Payment payable by the Supplemental Interest Trust, including any amount remaining unpaid from prior Distribution Dates (unless the Swap Counterparty is the Defaulting Party or the sole Affected Party (each, as defined in the Swap Agreement)), and (E) the
Principal Remittance Amount.

Net Mortgage Rate:  With respect to any Mortgage Loan (or the related REO Property), as of any date of determination,
a per annum rate of interest equal to the then applicable Mortgage Rate for such Mortgage Loan minus the Servicing Fee Rate.

Net Prepayment Interest Shortfall:  With respect to any Distribution Date, the excess, if any, of any Prepayment
Interest Shortfalls for such date over the related Compensating Interest.

Net Swap Payment:  With respect to any Distribution Date, the amount, if any, by which the Swap Payment exceeds the
Counterparty Payment on such Distribution Date.  The Net Swap Payment shall always equal the Interest Distribution Amount on the Class L3-SW Regular Interest.

Net WAC Rate: 

For any Distribution Date (other than the first Distribution Date) the Group I Senior Certificates is a per annum rate equal to (a) the excess, if any, of (i) the weighted average of the
Adjusted Net Mortgage Rates of the Group I Mortgage Loans, weighted on the basis of the Stated Principal Balances thereof as of the Due Date in the month preceding the month of such Distribution Date (adjusted for amounts included in the Group I Principal Remittance
Amount on any prior Distribution Date) over (ii) the percentage equivalent of a fraction, (1) the numerator of which is the sum of (A) any unpaid Group I Swap Termination Payment, including any amount remaining unpaid from prior Distribution Dates (unless the Swap
Counterparty is the Defaulting Party or the sole Affected Party (each, as defined in the Swap Agreement)), and (B) the Group I Net Swap Payment, if any such amount is then payable under the Swap Agreement, for such Distribution Date, in each case multiplied by 12,
and (2) the denominator of which is the aggregate Stated Principal Balance of the Group I Mortgage Loans as of the Due Date in the month preceding the month of such Distribution Date multiplied by (b) a fraction, the numerator of which is 30 and the denominator of
which is the actual number of days elapsed in the related Accrual Period. 

For any Distribution Date (other than the first Distribution Date) and the Group II Senior Certificates is a per annum rate equal to (a) the excess, if any, of (i) the weighted average of the
Adjusted Net Mortgage Rates of the Group II Mortgage Loans, weighted on the basis of the Stated Principal Balances thereof as of the Due Date in the month preceding the month of such Distribution Date (adjusted for amounts included in the Group II Principal
Remittance Amount on any prior Distribution Date) over (ii) the percentage equivalent of a fraction, (1) the numerator of which is the sum of (A) any unpaid Group II Swap Termination Payment, including any amount remaining unpaid from prior Distribution Dates (unless
the Swap Counterparty is the Defaulting Party or the sole Affected Party (each, as defined in the Swap Agreement)), and (B) the Group II Net Swap Payment, if any such amount is then payable under the Swap Agreement, for such Distribution Date, in each case multiplied
by 12, and (2) the denominator of which is the aggregate Stated Principal Balance of the Group II Mortgage Loans as of the Due Date in the month preceding the month of such Distribution Date multiplied by (b) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days elapsed in the related Accrual Period. 

For any Distribution Date and the Mezzanine Certificates, the Subordinated Net WAC Rate.

Net WAC Rate Carryover Amount:  With respect to any Class of the Class A and Mezzanine
Certificates and any Distribution Date on which the Pass‐Through Rate for such Class of Certificates exceeds the related Net WAC Rate, the sum of (i) the positive excess of (A) the amount of interest that would have been distributable to such Class of
Certificates if interest on such Class of Certificates for such Distribution Date were calculated at the lower of (x) the rate specified in the Preliminary Statement for such Class of Certificates and (y) the related Maximum Cap Rate on such Distribution Date over
(B) the amount of interest that would have been distributable on such Class of Certificates if interest on such Class of Certificates were calculated at the related Net WAC Rate for such Distribution Date and (ii) the Net WAC Rate Carryover Amount for such
Class for the prior Distribution Date not previously distributed, together with interest thereon at a rate equal to the lower of (x) the rate specified in the Preliminary Statement for such Class of Certificates and (y) the related Maximum Cap Rate on such
Distribution Date for the most recently ended Accrual Period.

New Lease:  Any lease of REO Property entered into on behalf of the Trust, including any lease renewed or extended on
behalf of the Trust if the Trust has the right to renegotiate the terms of such lease.

NIM Notes:  The Insured NIM Notes and the Other NIM Notes. 

NIMS Insurer:  A Person, or any of its successors that shall be the insurer under an insurance policy insuring certain
payments on Insured NIM Notes, if any; provided, however, upon the occurrence of certain events (as set forth in the Indenture and/or any other agreement among such Person, the NIMS Issuer, the
Servicer, the Trustee and/or other Persons), the NIMS Insurer shall be the Person designated in the Indenture or such other agreement.  If none of the net interest margin securities have been issued by the NIMS Issuer, that are insured by an insurance policy,
there shall be no NIMS Insurer under this Agreement, all references to the NIMS Insurer or Insured NIM Notes in this agreement are for administrative convenience only, shall be completely disregarded and no Person shall have any rights of the NIMS Insurer under this
Agreement.

NIMS Insurer Default:  The existence and continuation of any default by the NIMS Insurer (including a failure by the
NIMS Insurer to make a payment) under an insurance policy or policies issued in connection with the Indenture.

NIMS Issuer:  One or more Affiliates of the Company and/or one or more entities sponsored by an Affiliate of the
Company.

Nonrecoverable Advance:  Any Advance or Servicing Advance previously made or proposed to be made in respect of a
Mortgage Loan or REO Property that, in the good faith business judgment of the Servicer, will not or, in the case of a proposed Advance or Servicing Advance, would not be ultimately recoverable from related late payments, Insurance Proceeds or Liquidation Proceeds on
such Mortgage Loan or REO Property as provided herein.

Notice Addresses:  (a) In the case of the Company, 1201 Third Avenue, WMT 1706A, Seattle, WA 98101, or such other address as may hereafter be
furnished to the Trustee in writing by the Company, (b) in the case of the Servicer, 19850 Plummer St. (Mail Stop N070205) Chatsworth, California 91311, Fax No: (818) 775-2815, Attention: Vice President Investor Reporting, with a copy to: Washington Mutual Legal
Department, 1201 Third Avenue, WMT 1706, Seattle, WA 98101, Fax No: (206) 377-6244, Attention: WaMu, and with a copy to Washington Mutual Mortgage Securities Corp., 75 North Fairway Drive, Vernon Hills, Illinois 60061, Attention: Bond Administration, or such other
address and fax number as may hereafter be furnished in writing by the Servicer, (c) in the case of the Trustee, at its Corporate Trust Office, or such other address as may hereafter be furnished to the Servicer in writing by the Trustee, (d) in the case of the
Delaware Trustee, 1314 King Street, Wilmington, DE  19801, or such other address as may hereafter be furnished to the Servicer in writing by the Delaware Trustee, (e) in the case of the Trust, c/o LaSalle Bank National Association, at the Corporate Trust Office,
or such other address as may hereafter be furnished to the Servicer in writing by the Trustee, (f) in the case of the Certificate Registrar, at its Corporate Trust Office, or such other address as may hereafter be furnished to the Trustee in writing by the
Certificate Registrar, (g) in the case of S&P, 55 Water Street, 41st Floor, New York, New York 10041-0003, Attention:  Residential Mortgage Backed Securities Surveillance Group, or such other address as may hereafter be furnished to the Trustee and Servicer
in writing by S&P, (h) in the case of Moody’s, 99 Church Street, New York, NY 10007, Attention: Monitoring, or such other address as may hereafter be furnished to the Trustee and Servicer in writing by Moody’s, (i) in the case of Fitch, Fitch,
Inc., One State Street Plaza, New York, New York 10004, (j) in the case of the Swap Counterparty, as provided in the Swap Agreement, and (k) in the case of the NIMS Insurer, the NIMS Insurer’s address or telecopy number as set forth in the Indenture, or such
other addresses or telecopy number as may be furnished to the other parties hereto in writing by the NIMS Insurer.

Notional Amount:  With respect to the Class L3-C Regular Interest and the Class C
Certificates, immediately prior to any Distribution Date, an amount equal to the aggregate of the Uncertificated Principal Balances of the REMIC I Regular Interests.

OTS:  The Office of Thrift Supervision, or any successor thereto.

Officers’ Certificate:  A certificate signed by the Chairman of the Board, the Vice Chairman of the Board, the
President or a vice president (however denominated), and by the Treasurer, the Secretary, or one of the assistant treasurers or assistant secretaries of the Servicer, the Seller or the Company, as applicable.

Opinion of Counsel:  A written opinion of counsel, who shall be reasonably acceptable to the Trustee or the Delaware Trustee, as applicable, and
who may be counsel (including in-house counsel) for the Company or the Servicer.

Optional Termination Date:  The first Distribution Date on which the aggregate Stated Principal Balance of the
Mortgage Loans and each REO Property remaining in the Trust Fund is equal to or less than 10% of the Cut-off Date Principal Balance of the Closing Date Mortgage Loans.

Original Class Certificate Principal Balance:  With respect to the Class A Certificates, the Mezzanine Certificates
and the Class P Certificates, the corresponding Certificate Principal Balance on the Closing Date.

Original Class Notional Amount:  With respect to the Class C Interest, $389,194,677.20.

Original Trust Agreement:  The Trust Agreement, dated as of April 1, 2006, between the Company and the Delaware Trustee, providing for the
creation of the Trust.

Origination Value:  With respect to any Mortgaged Property, the lesser of (i) the Appraised Value thereof and (ii) the
value thereof as determined and assigned at origination by a review appraisal conducted by the Seller.

Other NIM Notes:  Net Interest Margin Securities, if any, issued by the NIMS Issuer, which are backed, in whole or in
part, by the cashflow on certain Class C Certificates and the Class P Certificates and not insured by any NIMS Insurer.

Overcollateralization Deficiency Amount:  With respect to any Distribution Date, the amount, if any, by which the
Overcollateralization Target Amount exceeds the Overcollateralized Amount on such Distribution Date (assuming that 100% of the aggregate Principal Remittance Amount is applied as a principal payment on such Distribution Date).

Overcollateralization Floor:  0.50% of the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.

Overcollateralization Target Amount:  With respect to any Distribution Date (i) prior to the Stepdown Date, 2.75% of the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date, (ii) on or after the Stepdown Date provided a Trigger Event is not in effect, the greater of (x) the lesser of (I) 2.75% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date and (II) 5.50% of the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) and (y) 0.50% of the aggregate Stated Principal Balance of the Mortgage Loans as of
the Cut-off Date, and (iii) on or after the Stepdown Date if a Trigger Event is in effect, the Overcollateralization Target Amount for the immediately preceding Distribution Date.

Overcollateralized Amount:  With respect to any Distribution Date, the amount, if any, by which (i) the aggregate
Stated Principal Balance of the Mortgage Loans on the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) exceeds (ii) the sum of the aggregate Certificate Principal Balances of the Class A Certificates, the Mezzanine Certificates and the Uncertificated Principal Balance of the Class P Interest as of such Distribution Date
(after giving effect to distributions to be made on such Distribution Date, other than distributions of the Extra Principal Distribution Amount, if any).

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

Pass-Through Entity:  Any regulated investment company, real estate investment trust, common trust fund, partnership, trust or estate, and any
organization to which Section 1381 of the Code applies.

Pass-Through Rate: For each Class of Certificates, the per annum rate set forth as the Pass-Through Rate for such Class in the Preliminary
Statement hereto.

Paying Agent: Any paying agent appointed by the Trustee pursuant to Section 8.12.

Payoff: Any payment by or on behalf of a Mortgagor of principal on a Mortgage Loan equal to the entire
outstanding principal balance of such Mortgage Loan, if received in advance of the last scheduled Due Date for such Mortgage Loan and accompanied by an amount of interest equal to accrued unpaid interest on the Mortgage Loan to the date of such payment in full. 
(Prepayment Charges are not payments of principal and hence Payoffs do not include Prepayment Charges.)

Percentage Interest:  With respect to any Certificate (other than a Residual Certificate), a fraction, expressed as a
percentage, the numerator of which is the Initial Certificate Principal Balance or Initial Notional Amount represented by such Certificate and the denominator of which is the Original Class Certificate Principal Balance or Original Class Notional Amount of the
related Class.  With respect to a Residual Certificate, the portion of the Class evidenced thereby, expressed as a percentage, as stated on the face of such Certificate; provided, however, with respect to each Class referred to in this paragraph,
that the sum of all such percentages for each such Class totals 100%.

Periodic Rate Cap:  With respect to each Adjustable Rate Mortgage Loan and any Adjustment Date therefor, the fixed
percentage set forth in the related Mortgage Note, which is the maximum amount by which the Mortgage Rate for such Mortgage Loan may increase or decrease (without regard to the Maximum Mortgage Rate or the Minimum Mortgage Rate) on such Adjustment Date from the
Mortgage Rate in effect immediately prior to such Adjustment Date.

Permitted Transferee:  With respect to the holding or ownership of any Residual Certificate, any Person other than (i)
the United States, a State or any political subdivision thereof, or any agency or instrumentality of any of the foregoing, (ii) a foreign government, International Organization or any agency or instrumentality of either of the foregoing, (iii) an organization (except
certain farmers’ cooperatives described in Code Section 521) which is exempt from the taxes imposed by Chapter 1 of the Code (unless such organization is subject to the tax imposed by Section 511 of the Code on unrelated business taxable income), (iv) rural
electric and telephone cooperatives described in Code Section 1381(a)(2)(C), (v) any “electing large partnership” as defined in Section 775(a) of the Code, (vi) any Person from whom the Trustee has not received an affidavit to the effect that it is not a
“disqualified organization” within the meaning of Section 860E(e)(5) of the Code, and (vii) any other Person so designated by the Company based upon an Opinion of Counsel that the transfer of an Ownership Interest in a Residual Certificate to such Person
may cause REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI to fail to qualify as a REMIC at any time that the Certificates are outstanding. The terms “United States,” “State” and “International Organization” shall have
the meanings set forth in Code Section 7701 or successor provisions. A corporation shall not be treated as an instrumentality of the United States or of any State or political subdivision thereof if all of its activities are subject to tax, and, with the exception of
the Freddie Mac, a majority of its board of directors is not selected by such governmental unit.

Person:  Any individual, corporation, limited liability company, partnership, joint venture, association, joint stock
company, trust, unincorporated organization or government or any agency or political subdivision thereof or any other entity or organization, whether or not a legal entity.

Plan:  Any employee benefit plan or certain other retirement plans and arrangements, including individual retirement
accounts and annuities, Keogh plans and bank collective investment funds and insurance company general or separate accounts in which such plans, accounts or arrangements are invested, that are subject to ERISA or Section 4975 of the Code.

Preference Claim:  As defined in Section 4.10 hereof.

Prepayment Charge:  With respect to any Mortgage Loan, the charges or premiums, if any, due in connection with a full
(but not partial) prepayment of such Mortgage Loan in accordance with the terms thereof (other than any Servicer Prepayment Charge Payment Amount).

Prepayment Charge Schedule:  As of the Cut‐off Date, a list attached hereto as Schedule I (including the
Prepayment Charge Summary attached thereto), setting forth the following information with respect to each Prepayment Charge:

(i)         the Mortgage Loan identifying number;

(ii)        a code indicating the type of Prepayment Charge;

(iii)       the state of origination of the related Mortgage Loan;

(iv)       the date on which the first monthly payment was due on the related Mortgage Loan;

(v)        the term of the related Prepayment Charge; and

(vi)       the principal balance of the related Mortgage Loan as of the Cut‐off Date.

The Prepayment Charge Schedule shall be amended from time to time by the Servicer in accordance with the provisions of this Agreement and a copy of each related amendment shall be
furnished by the Servicer to the NIMS Insurer and the Trustee.

Prepayment Interest Excess:  With respect to any Distribution Date, for each Mortgage Loan for which a Principal
Prepayment in full is applied on or after the first calendar day of the month of such Distribution Date and before the 15th calendar day of such month, the amount of interest collected on such Principal Prepayment in full at the applicable Net Mortgage Rate from the
first day of the month in which such Distribution Date occurs through the day on which such Principal Prepayment is applied.

Prepayment Interest Shortfall:  With respect to any Distribution Date, for each Mortgage Loan that was during the
related Prepayment Period the subject of a Principal Prepayment in full or in part that was applied by the Servicer to reduce the outstanding principal balance of such loan on a date preceding the Due Date in the month in which such Distribution Date occurs, an
amount equal to interest at the applicable Net Mortgage Rate on the amount of such Principal Prepayment for the lesser of (i) the number of days commencing on the date on which the prepayment is applied and ending on the last day of the month in which such
Principal Prepayment is applied and (ii) 30 days.  The obligations of the Servicer in respect of any Prepayment Interest Shortfall are set forth in Section 3.24.  For avoidance of doubt, no Prepayment Interest Shortfalls shall exist with respect
to Principal Prepayments in full which are applied during the period from the first through the 14th day of the month of the related Distribution Date.

Prepayment Period:  With respect to any Distribution Date, (i) the period from the 15th day of the month immediately
preceding the month in which such Distribution Date occurs (or in the case of the first Distribution Date, the Cut-off Date) through the 14th day of the month in which such Distribution Date occurs, inclusive, for purposes of Principal Prepayments in full; and (ii)
the calendar month immediately preceding the calendar month in which such Distribution Date occurs, for any other purpose.  Except for purposes of calculating Prepayment Interest Excess, Principal Prepayments made during the calendar month immediately preceding
the Cut-off Date and received by the Servicer shall be deemed to be received after the Cut-off Date and during the Prepayment Period related to the first Distribution Date.

Prime Rate:  The prime rate of United States money center commercial banks as published in The Wall Street
Journal.

Principal Balance:  As to any Mortgage Loan other than a Liquidated Mortgage Loan, and any day, the related
Cut‐off Date Principal Balance, minus all collections credited against the Cut‐off Date Principal Balance of any such Mortgage Loan.  For purposes of this definition, a Liquidated Mortgage Loan shall be deemed to have a Principal Balance equal
to the Principal Balance of the related Mortgage Loan as of the final recovery of related Liquidation Proceeds and a Principal Balance of zero thereafter.  As to any REO Property and any day, the Principal Balance of the related Mortgage Loan shall equal the
Principal Balance of the related Mortgage Loan immediately prior to such Mortgage Loan becoming REO Property minus any REO Principal Amortization received with respect thereto on or prior to such day.

Principal Distribution Amount:  With respect to any Distribution Date, the sum of the Group I Principal
Distribution Amount and the Group II Principal Distribution Amount.

Principal Prepayment:  Any payment of principal made by the Mortgagor on a Mortgage Loan which is received in advance
of its scheduled Due Date and which is not accompanied by an amount of interest representing the full amount of scheduled interest due on any Due Date in any month or months subsequent to the month of prepayment.

Principal Remittance Amount:  With respect to any Distribution Date, the sum of the Group I Principal Remittance
Amount and the Group II Principal Remittance Amount.

Purchase Price:  With respect to any Mortgage Loan or REO Property to be purchased pursuant to or as contemplated by
Section 2.08, Section 3.16(c) or Section 9.01, and as confirmed by an Officers’ Certificate from the Servicer to the Trustee, an amount equal to the sum of (i) 100% of the Stated Principal Balance thereof as of the date of purchase (or such other
price as provided in Section 9.01), (ii) in the case of (x) a Mortgage Loan, accrued interest on such Stated Principal Balance at the applicable Net Mortgage Rate in effect from time to time from the Due Date as to which interest was last paid by the
Mortgagor or by an advance by the Servicer through the end of the calendar month in which the purchase is to be effected and (y) an REO Property, the sum of (1) accrued interest on such Stated Principal Balance at the applicable Net Mortgage Rate in effect
from time to time from the Due Date as to which interest was last paid by the Mortgagor or by an advance by the Servicer through the end of the calendar month immediately preceding the calendar month in which such REO Property was acquired, plus (2) REO Imputed
Interest for such REO Property for each calendar month commencing with the calendar month in which such REO Property was acquired and ending with the calendar month in which such purchase is to be effected, net of the total of all net rental income, Insurance
Proceeds, Liquidation Proceeds and Advances that as of the date of purchase had been distributed in respect of REO Imputed Interest pursuant to Article IV, (iii) any unreimbursed Servicing Advances, Advances and Nonrecoverable Advances and any unpaid Servicing
Fees allocable to such Mortgage Loan or REO Property, (iv) any amounts previously withdrawn from the Collection Account in respect of such Mortgage Loan or REO Property pursuant to Section 3.11 (a)(ix) and Section 3.16(b), (v) in the case of a
Mortgage Loan required to be purchased pursuant to Section 2.08, enforcement expenses reasonably incurred or to be incurred by the NIMS Insurer, the Servicer or the Trustee in respect of the breach or defect giving rise to the purchase obligation and (vi) in the
case of a Mortgage Loan required to be repurchased pursuant to Section 2.08 because such Mortgage Loan is in breach of the representation in Section 3.1(xlvi) or in Section 3.1(lxi) of the Mortgage Loan Purchase Agreement, any additional costs or damages in excess of
the amounts to be paid pursuant to clauses (i) through (v) above (including attorney’s fees) incurred by the Trust as a result of the Trust’s status as an assignee or purchaser of such Mortgage Loans.

Qualified Substitute Mortgage Loan:  A Mortgage Loan which is substituted for another Mortgage Loan pursuant to and in
accordance with the provisions of Section 2.08.

Rate Change Date:  With respect to any REMIC I Regular Interest, the Distribution Date occurring in the month set
forth as the Rate Change Date for such REMIC I Regular Interest in the Preliminary Statement.

Rating Agency or Rating Agencies:  Initially, each of Fitch, S&P and Moody’s and thereafter, each nationally
recognized statistical rating organization that has rated the Certificates at the request of the Company, or their respective successors in interest.

Realized Loss: 

With respect to any Liquidated Mortgage Loan, the amount of loss realized equal to the portion of the Principal Balance remaining unpaid after application of all Net Liquidation Proceeds and
Insurance Proceeds in respect of such Mortgage Loan.  Realized Losses shall be allocated among the REMIC I, REMIC II, REMIC III, and REMIC IV Regular Interests and the Certificates, as follows:

(a)        Prior to each Determination Date, the Servicer shall determine as to each Mortgage Loan and REO Property:  (i) the total amount of
Realized Losses, if any, incurred in connection with any Final Recovery Determinations made during the related Prepayment Period; (ii) whether and the extent to which such Realized Losses constituted Bankruptcy Losses; and (iii) the respective portions of
such Realized Losses allocable to interest and allocable to principal.  Prior to each Determination Date, the Servicer shall also determine as to each Mortgage Loan:  (i) the total amount of Realized Losses, if any, incurred in connection with any
Deficient Valuations made during the related Prepayment Period; and (ii) the total amount of Realized Losses, if any, incurred in connection with Debt Service Reductions in respect of Monthly Payments due during the related Due Period.  The information
described in the two preceding sentences that is to be supplied by the Servicer shall be evidenced by an Officers’ Certificate delivered to the NIMS Insurer and the Trustee by the Servicer prior to the Determination Date immediately following the end of
(i) in the case of Bankruptcy Losses allocable to interest, the Due Period during which any such Realized Loss was incurred, and (ii) in the case of all other Realized Losses, the Prepayment Period during which any such Realized Loss was
incurred.

(b)        If on any Distribution Date after giving effect to all Realized Losses incurred with respect to the Mortgage Loans during or prior to the related
Due Period and distributions of principal with respect to the Class A Certificates and the Mezzanine Certificates on such Distribution Date, the Class Principal Balance of the Class L3-C Regular Interest is equal to zero, Realized Losses equal to the
Undercollateralized Amount shall be allocated on such Distribution Date as follows:  first, to the Class M-11 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, second, to the Class M‐10 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero, third, to the Class M‐9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, fourth, to the Class M-8 Certificates, until the Certificate Principal Balance
thereof has been reduced to zero, fifth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, sixth, to the Class M‐6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero,
seventh, to the Class M‐5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, eighth, to the Class M‐4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, ninth, to the Class M-3
Certificates, until the Certificate Principal Balance thereof has been reduced to zero, tenth, to the Class M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero, and eleventh, to the Class M‐1 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero.  All Realized Losses to be allocated to the Certificate Principal Balances of the Mezzanine Certificates on any Distribution Date shall be so allocated after the actual distributions to be made on
such date as provided in Article IV.  All references above to the Certificate Principal Balance of the Mezzanine Certificates shall be to the Certificate Principal Balance of the Mezzanine Certificates immediately prior to the relevant Distribution Date, before
reduction thereof by any Realized Losses or increase thereof by any Subsequent Recoveries, in each case to be allocated to such Mezzanine Certificates on such Distribution Date.

Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated.  No
allocations of any Realized Losses shall be made to the Class A Certificates or the Class P Certificates.  Any Realized Losses that reduce the Class Principal Balance of the Class L3-C Regular Interest, shall be allocated to reduce the distributions in
respect of and/or the Certificate Principal Balance of the Class C Certificates.

(c)        (i)         Realized Losses on the Group I Mortgage Loans shall be allocated on each Distribution Date to
the Interest Distribution Amount on, and then the Class Principal Balance of, the Class L1-Y-X Regular Interest.  If the Class Principal Balance of the Class L1-Y-X Regular Interest has been reduced to zero, Realized Losses on the Group I Mortgage Loans shall be
allocated to the remaining REMIC I Group I Regular Interests, first, to those REMIC I Group I Regular Interests with the designation “A” for which the Rate Change Dates have occurred, second, to the REMIC I Group I Regular Interests with the designation
“B” and the same numerical designation as the Regular Interests in the preceding clause, and third, to the remaining REMIC I Group I Regular Interests in descending numerical order, in each case until the Uncertificated Principal Balance of such REMIC I
Regular Interest has been reduced to zero.  Realized Losses on the Group II Mortgage Loans shall be allocated on each Distribution Date to the Interest Distribution Amount on, and then the Class Principal Balance of, the Class L1-Z-X Regular Interest.  If
the Class Principal Balance of the Class L1-Z-X Regular Interest has been reduced to zero, Realized Losses on the Group II Mortgage Loans shall be allocated to the remaining REMIC I Group II Regular Interests, first, to those REMIC I Group II Regular Interests with
the designation “A” for which the Rate Change Dates have occurred, second, to the REMIC I Group II Regular Interests with the designation “B” and the same numerical designation as the Regular Interests in the preceding clause, and third, to
the remaining REMIC I Group II Regular Interests in descending numerical order, in each case until the Class Principal Balance of such REMIC I Regular Interest has been reduced to zero.

(ii)        50% of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC II
Regular Interests in the specified percentages, as follows:

first, to the Interest Distribution Amount payable to the Class L2-XX and Class L2-ZZ Regular Interests up to an aggregate amount equal to the REMIC II Interest Loss
Allocation Amount, 98% and 2%, respectively;

second, to the Uncertificated Principal Balances of the Class L2-XX and Class L2-ZZ Regular Interests up to an aggregate amount equal to the REMIC II Principal Loss
Allocation Amount, 98% and 2%, respectively;

third, to the Uncertificated Principal Balances of the Class L2-XX, L2-M11, and L2-ZZ Regular Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M11 Regular Interest has been reduced to zero;

fourth, to the Uncertificated Principal Balances of the Class L2-XX, L2-M10, and L2-ZZ Regular Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M10 Regular Interest has been reduced to zero;

fifth, to the Uncertificated Principal Balances of the Class L2-XX, L2-M9, and L2-ZZ Regular Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M9 Regular Interest has been reduced to zero;

sixth, to the Uncertificated Principal Balances of the Class L2-XX, L2-M8, and L2-ZZ Regular Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M8 Regular Interest has been reduced to zero;

seventh, to the Uncertificated Principal Balances of the Class L2-XX, L2-M7, and L2-ZZ Regular Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M7 Regular Interest has been reduced to zero;

eighth, to the Uncertificated Principal Balances of the Class L2-XX, L2-M6, and L2-ZZ Regular Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M6 Regular Interest has been reduced to zero;

ninth, to the Uncertificated Principal Balances of the Class L2-XX, L2-M5, and L2-ZZ Regular Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M5 Regular Interest has been reduced to zero;

tenth, to the Uncertificated Principal Balances of the Class L2-XX, L2-M4, and L2-ZZ Regular Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M4 Regular Interest has been reduced to zero;

eleventh, to the Uncertificated Principal Balances of the Class L2-XX, L2-M3, and L2-ZZ Regular Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M3 Regular Interest has been reduced to zero;

twelfth, to the Uncertificated Principal Balances of the Class L2-XX, L2-M2, and L2-ZZ Regular Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M2 Regular Interest has been reduced to zero; and

thirteenth, to the Uncertificated Principal Balances of the Class L2-XX, L2-M1, and L2-ZZ Regular Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M1 Regular Interest has been reduced to zero.

(iii)       50% of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the Class L2-1-GP, L2-1-SB,
L2-2-GP, L2-2-SB, and L2-YY Regular Interests, as follows:

after all distributions have been made on such Distribution Date, Realized Losses shall be applied in such a manner as to keep the Uncertificated Principal Balance of
each REMIC II Regular Interest ending with the designation “GP” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group (determined as of the current Distribution Date), and the Uncertificated Principal
Balance of each REMIC II Regular Interest ending with the designation “SB” equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group as of the current Distribution Date over (y) the
Certificate Principal Balance of the Senior Certificates related to such Loan Group immediately prior to such Distribution Date (except that if such excess is larger than it was for the preceding Distribution Date, the least amount of Realized Loss shall be allocated
such that the REMIC II Subordinated Ratio is maintained); and then to the Class L2-YY.

(d)        If on any Distribution Date Allocated Realized Loss Amounts are to be reinstated due to Subsequent Recoveries, the Allocated Realized Loss Amounts
shall be reinstated on such Distribution Date to increase the Certificate Principal Balances of the Mezzanine Certificates in the following order of priority, in each case until the related Allocated Realized Loss Amount has been reduced to zero:  first,
to the Class M‐1 Certificates, second to the Class M‐2 Certificates, third to the Class M‐3 Certificates, fourth to the Class M‐4 Certificates, fifth to the Class M‐5 Certificates, sixth to the Class
M‐6 Certificates, seventh to the Class M‐7 Certificates, eighth to the Class M-8 Certificates, ninth to the Class M-9 Certificates, tenth to the Class M‐10 Certificates and eleventh to the Class M-11
Certificates.  All Subsequent Recoveries to be allocated to the Certificate Principal Balances of the Mezzanine Certificates on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided in Article IV. 
All references above to the Certificate Principal Balance of the Mezzanine Certificates shall be to the Certificate Principal Balance of the Mezzanine Certificates immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses or
increase thereof by any Subsequent Recoveries, in each case to be allocated to the Mezzanine Certificates on such Distribution Date.

Any Allocated Realized Loss Amounts to be reinstated to a Certificate on any Distribution Date due to Subsequent Recoveries shall be made by increasing the Certificate Principal Balance
thereof by the amount so reinstated.  No allocations of any Subsequent Recoveries shall be made to the Class A Certificates or the Class P Certificates. 

(e)        (i)         If on any Distribution Date Subsequent Recoveries occurred in the related Prepayment Period
relating to the Group I Mortgage Loans, the amount of such Subsequent Recoveries shall be allocated first to the REMIC I Group I Regular Interests with the designations “A” and “B” in the reverse order in which Realized Losses were allocated
under Section 4.05(c)(i), and then to REMIC I Regular Interest IX.  If on any Distribution Date Subsequent Recoveries occurred in the related Prepayment Period relating to the Group II Mortgage Loans, the amount of such Subsequent Recoveries shall be allocated
first to the REMIC I Group II Regular Interests with the designations “A” and “B” in the reverse order in which Realized Losses were allocated under Section 4.05(c)(i), and then to REMIC I Regular Interest IIX.

(ii)        If on any Distribution Date Subsequent Recoveries occurred in the related Prepayment Period, the amount of such
Subsequent Recoveries shall be allocated among the REMIC II Regular Interests as follows:

(i)         50% of the Subsequent Recoveries from all Loan Groups shall be allocated among the REMIC I Regular Interests in
the same proportions and amounts, but in the reverse order, as Realized Losses were allocated under Section 4.05(c)(ii). 

(ii)        50% of the Subsequent Recoveries from all Loan Groups shall be allocated in the same proportions, but in reverse order,
as the Realized Losses were allocated under Section 4.05(c)(iii).

Record Date:  With respect to (i) the Class C Certificates, the Class P Certificates, the Residual Certificates and
any Definitive Certificates, the Close of Business on the last Business Day of the calendar month preceding the month in which the related Distribution Date occurs and (ii) with respect to the Class A Certificates and the Mezzanine Certificates, the Close of
Business on the Business Day immediately preceding the related Distribution Date; provided, however, that following the date on which Definitive Certificates for a Class A Certificate and a Mezzanine Certificate are available pursuant to
Section 5.09, the Record Date for such Certificates shall be the last Business Day of the calendar month preceding the month in which the related Distribution Date occurs. 

Recording Documents:  Documents referred to in clauses (b), (c), (d), or (e) of the definition of “Mortgage
File.”

Reference Banks:  Those banks (i) with an established place of business in London, England, (ii) not
controlling, under the control of or under common control with the Company, the Seller or the Servicer or any affiliate thereof and (iii) which have been designated as such by the Trustee with the consent of the NIMS Insurer; provided, however,
that if fewer than two of such banks provide a LIBOR rate, then any leading banks selected by the Trustee with the consent of the NIMS Insurer which are engaged in transactions in United States dollar deposits in the international Eurocurrency market.

Refinanced Mortgage Loan:  A Mortgage Loan the proceeds of which were not used to purchase the related Mortgaged
Property.

Regular Certificates:  The Class A Certificates, the Mezzanine Certificates, the Class C Certificates and the Class P
Certificates.

Regular Interest:  Any of the REMIC I, REMIC II, REMIC III, or REMIC VI Regular Interests.

Regulation AB:  Subpart 229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1123,
as such may be amended from time to time.

Relief Act:  The Servicemembers’ Civil Relief Act of 2003, as amended, or similar state or local law.

Relief Act Interest Shortfall:  With respect to any Distribution Date, for any Mortgage Loan with respect to which
there has been a reduction in the amount of interest collectible thereon for the most recently ended Due Period as a result of the application of the Relief Act, the amount by which (i) interest collectible on such Mortgage Loan during such Due Period is less
than (ii) one month’s interest on the Principal Balance of such Mortgage Loan at the Mortgage Rate for such Mortgage Loan before giving effect to the application of the Relief Act.

Remaining Principal Distribution Amount:  With respect to any Distribution Date, an amount equal to the Principal
Distribution Amount remaining after the distributions set forth in paragraphs (g), (h) and (i) of the definition of REMIC III Distribution Amount.

REMIC I:  The segregated pool of assets subject hereto, constituting a primary trust created hereby and to be administered hereunder, with respect
to which a REMIC election is to be made consisting of:  (i) such Mortgage Loans as from time to time are subject to this Agreement, together with the Mortgage Files relating thereto, and together with all collections thereon and proceeds thereof,
(ii) any REO Property, together with all collections thereon and proceeds thereof, (iii) the Trustee’s rights with respect to the Mortgage Loans under all insurance policies required to be maintained pursuant to this Agreement and any proceeds
thereof, (iv) the Company’s rights with respect to the Mortgage Loans under the Mortgage Loan Purchase Agreement (including any security interest created thereby), and (v) the Collection Account, the Distribution Account (subject to the last sentence of
this definition) and any REO Account and such assets that are deposited therein from time to time and any investments thereof, together with any and all income, proceeds and payments with respect thereto.  Notwithstanding the foregoing, however, a REMIC election
will not be made with respect to the Reserve Fund, the Supplemental Interest Trust and the Servicer Prepayment Charge Payment Amounts.

REMIC I Available Distribution Amount:  With respect to any Distribution Date, an amount equal to the excess of (i) the sum of (a) the
aggregate of the Monthly Payments on the Mortgage Loans due on the related Due Date and received on or prior to the related Determination Date,(b) Liquidation Proceeds, Insurance Proceeds, Principal Prepayments, Gross Subsequent Recoveries and other unscheduled
recoveries of principal and interest in respect of the Mortgage Loans during the related Prepayment Period (other than any Prepayment Charges collected by the Servicer in connection with the full prepayment of any of the Mortgage Loans, any Servicer Prepayment Charge
Payment Amount in connection with the Mortgage Loans and any Prepayment Interest Excess), (c) the aggregate of any amounts received in respect of an REO Property acquired in respect of a Mortgage Loan withdrawn from any REO Account and deposited in the
Collection Account for such Distribution Date, (d) the aggregate of any amounts deposited in the Collection Account by the Servicer in respect of related Prepayment Interest Shortfalls on the Mortgage Loans for such Distribution Date, (e) the aggregate of
any Advances made by the Servicer or the Trustee for such Distribution Date with respect to the Mortgage Loans, (f) the aggregate of any related advances made by or on behalf of the Trustee for such Distribution Date with respect to the Mortgage Loans pursuant to
Section 7.01 and (g) the aggregate of any amounts constituting proceeds of repurchases or substitutions of the Mortgage Loans occurring during the related Prepayment Period over (ii) the sum, without duplication, of (a) amounts reimbursable or
payable to the Depositor, the Servicer, the Trustee, the Seller, the NIMS Insurer or any Sub‐Servicer pursuant to Section 3.11 or Section 3.12 in respect of the Mortgage Loans or otherwise payable in respect of Extraordinary Trust Fund Expenses,
(b) amounts deposited in the Collection Account or the Distribution Account pursuant to clauses (i)(a) through (g) above, as the case may be, in error, (c) Stayed Funds, (d) any Trustee Fee pursuant to Section 8.05 and (e) amounts reimbursable to
the Trustee for an advance made pursuant to Section 7.01 which advance the Trustee has determined to be nonrecoverable from the Stayed Funds in respect of which it was made.

REMIC I Distribution Amount:  For any Distribution Date, the REMIC I Available Distribution Amount shall be distributed to the REMIC I Regular
Interests and the Class R-1 Residual Interest in the following amounts and priority:

(a)        To the extent of the REMIC I Available Distribution Amount attributable to Loan Group I:

(i)                  first, to the
Class L1-P Regular Interest, (A) all amounts representing Prepayment Charges in respect of the Group I Loans and (B) on the Distribution Date immediately following the expiration of the latest Prepayment Charge as identified on the Prepayment Charge Schedule or
any Distribution Date thereafter until $100 has been distributed pursuant to this clause and clause (b)(i), below;

(ii)                second, distributions of
remaining amounts shall be made to the Class L1-Y-X Regular Interest, and each of the Class L1-Y-1A through L1-Y-55B, pro rata, in an amount equal to (A) the Interest Distribution Amounts for such Regular Interests for such Distribution Date, plus (B) any
amounts payable in respect thereof remaining unpaid from previous Distribution Dates;

(iii)              
third, sequentially to those REMIC I Group I Regular Interests with the designation "A" for which the Rate Change Dates occurred prior to the current Distribution Date, in numerical order starting with the Class L1-Y-1A Regular Interest, in each case until the Class
Principal Balance of such Regular Interest has been reduced to zero;

(iv)              fourth, sequentially to those REMIC
I Group I Regular Interests with the designation "B" and the same numerical designations as the REMIC I Group I Regular Interests described in clause (ii), in numerical order starting with the Class L1-Y-1B Regular Interest, in each case until the Class Principal
Balance of such Regular Interest has been reduced to zero; and

(v)                fifth, to the Class
L1-Y-X Regular Interest until the Class Principal Balance thereof has been reduced to zero.

(b)        To the extent of the REMIC I Available Distribution Amount attributable to Loan Group II:

(i)                  first, to the
Class L1-P Regular Interest, (A) all amounts representing Prepayment Charges in respect of the Group II Loans and (B) on the Distribution Date immediately following the expiration of the latest Prepayment Charge as identified on the Prepayment Charge Schedule or any
Distribution Date thereafter until $100 has been distributed pursuant to this clause and clause (b)(i), below;

(ii)                second, distributions of
remaining amounts shall be made to the Class L1-Z-X Regular Interest, and each of the Class L1-Z-1A through L1-Z-55B, pro rata, in an amount equal to (A) the Interest Distribution Amounts for such Regular Interests for such Distribution Date, plus (B) any
amounts payable in respect thereof remaining unpaid from previous Distribution Dates;

(iii)               third, sequentially to those
REMIC I Group I Regular Interests with the designation "A" for which the Rate Change Dates occurred prior to the current Distribution Date, in numerical order starting with the Class L1-Z-1A Regular Interest, in each case until the Class Principal Balance of such
Regular Interest has been reduced to zero;

(iv)              fourth, sequentially to those REMIC
I Group I Regular Interests with the designation "B" and the same numerical designations as the REMIC I Group I Regular Interests described in clause (ii), in numerical order starting with the Class L1-Z-1B Regular Interest, in each case until the Class Principal
Balance of such Regular Interest has been reduced to zero; and

(v)                fifth, to the Class
L1-Z-X Regular Interest until the Class Principal Balance thereof has been reduced to zero.

(c)        To the extent of the REMIC I Available Distribution Amounts for Loan Group I and Loan Group II for such Distribution Date remaining after
payment of the amounts pursuant to paragraphs (a) and (b) of this definition of “REMIC I Distribution Amount”:

(i)         first, to the REMIC I Regular Interests, pro rata according to the amount of unreimbursed
Realized Losses allocable to principal previously allocated to each such Class, the aggregate amount of such unreimbursed Realized Losses; provided, however, that any amounts distributed pursuant to this paragraph (c)(i) of this definition of “REMIC I
Distribution Amount” shall not cause a reduction in the Class Principal Balances of any of the REMIC I Regular Interests; and

(ii)        second, pro rata in accordance with their remaining Class Principal Balances, to all the REMIC I Regular Interests other
than the Class L1-P Regular Interest; and,

(iii)       third, to the Class R-1 Residual Interest, the Residual Distribution Amount for the Class R-1
Residual Interest for such Distribution Date.

REMIC I Group I Regular Interests:  The Class L1-Y-X Regular Interest and the REMIC I
Regular Interests designated in the Preliminary Statement hereto designated as Classes L1-Y-1A through L1-Y-55B.

REMIC I Group II Regular Interests:  The Class L1-Z-X Regular Interest and the REMIC I
Regular Interests designated in the Preliminary Statement hereto designated as Classes L1-Z-1A through L1-Z-55B.

REMIC I Regular Interest:  Any of the 223 separate non-certificated beneficial ownership
interests in REMIC I issued hereunder and designated as a “Regular Interest” in REMIC I in the Preliminary Statement.  Each REMIC I Regular Interest shall accrue interest at the rate specified in the Preliminary Statement as in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Principal Balance as set forth in the Preliminary Statement.

REMIC II:  The segregated pool of assets consisting of all of the REMIC I Regular
Interests (other than the Class L1-P Regular Interest) conveyed in trust to the Trustee, for the benefit of REMIC III, as holder of the REMIC II Regular Interests and the Class R Certificateholders, as holders of the Class R‐2 Interest, pursuant to Article II
hereunder, and all amounts deposited therein, with respect to which a separate REMIC election is to be made.

REMIC II Available Distribution Amount:  For the REMIC II Regular Interests and the Class R-2 Residual Interest, the aggregate of all
distributions to the REMIC I Regular Interests other than the Class L1-P Regular Interest (which amount shall be available for distributions to the REMIC II Regular Interests and the Class R-2 Residual Interest as provided herein).

REMIC II Distribution Amount:  (I) For any Distribution Date, the REMIC II Available Distribution Amount for such Distribution Date shall be
distributed to the REMIC II Regular Interests and the Class R-2 Residual Interest in the following amounts and priority:

(a)        With respect to all the REMIC II Regular Interests:

(i)         first, to the Class L2-SW Regular Interest, in an amount equal to (A) Interest Distribution
Amount for such Regular Interest for such Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from previous Distribution Dates;

(ii)        second to the Class L2-XX, L2-1-A1, L2-2-A1, L2-2-A2, L2-2-A3, L2-2-A4, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7,
L2-M8, L2-M9, L2-M10, L2-M11, and L2-ZZ Regular Interests, pro rata, in an amount equal to (A) the Interest Distribution Amounts for such Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from previous Distribution Dates; provided,
however, that Interest Distribution Amount in respect of the Class L2-ZZ Regular Interest shall be reduced and deferred when the REMIC II Overcollateralized Amount is less than the REMIC II Overcollateralization Target Amount, by the lesser of (x) the amount of such
difference and (y) the Maximum ZZ Uncertificated Interest Deferral Amount and such amount shall be payable to the Holders of the Class L2-XX, L2-1-A1, L2-2-A1, L2-2-A2, L2-2-A3, L2-2-A4, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8, L2-M9, L2-M10, and
L2-M11 Regular Interests in the same proportion as the Extra Principal Distribution Amount is allocated to the Corresponding Certificates and the Class Principal Balance of the Class L2-ZZ Regular Interest shall be increased by such amount; and

(iii)       third, to the Class L2-1-GP, L2-1-SB, L2-2-GP, L2-2-SB, and L2-YY Regular Interests, pro rata,
in an amount equal to (A) the Interest Distribution Amounts for such Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from previous Distribution Dates;

(b)        After the distributions in paragraph (a) of this definition of REMIC II Distribution Amount have been made, 50% of the remaining REMIC II
Available Distribution Amount shall be distributed as follows:

(i)         first, in the ratio of 98 to 1 to 1, (A) to the Class L2-XX Regular Interest until the Class Principal Balance of
such Regular Interest is reduced to zero, (B) to the Class L2-1-A1, L2-2-A1, L2-2-A2, L2-2-A3, L2-2-A4, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8, L2-M9, L2-M10, and L2-M11 Regular Interests, allocated among such Classes in the same proportion as
principal payments are allocated to the Corresponding Certificates, in each case until the Uncertificated Balances of such Regular Interests are reduced to zero, and (C) to the Class L2-ZZ Regular Interest until the Uncertificated Principal Balance of such Regular
Interest is reduced to zero; and

(ii)        any remaining amount to the Class R-2 Residual Interest.

(c)        After the distributions in paragraph (a) of this definition of REMIC II Distribution Amount have been made, 50% of the remaining REMIC II
Available Distribution Amount shall be distributed as follows:

(i)         first to the Class L2-1-GP, L2-1-SB, L2-2-GP, and L2-2-SB Regular Interests in the amounts necessary to keep the
Class Principal Balance of each REMIC II Regular Interest with the designation “GP” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group (determined as of the current Distribution Date), and the Class
Principal Balance of each REMIC II Regular Interest with the designation “SB” equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of
the Class A Certificates in the related Loan Group;

(ii)        second, to the Class L2-YY Regular Interest, until the Class Principal Balance of the Regular Interest has been reduced
to zero; and

(iii)       any remaining amount to the Class R-2 Residual Interest.

REMIC II Interest Loss Allocation Amount:  With respect to any Distribution Date, an amount equal to (a) the product
of (i) 50% of the aggregate Principal Balance of the Mortgage Loans and related REO Properties then outstanding and (ii) the Certificate Interest Rate for the Class L2‐XX Regular Interest minus the Marker Rate, divided by (b) 12.

REMIC II Overcollateralized Amount: With respect to any date of determination, (i) 0.50% of the
aggregate Class Principal Balances of the Class L2-XX, L2-1-A1, L2-2-A1, L2-2-A2, L2-2-A3, L2-2-A4, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8, L2-M9, L2-M10, L2-M11, and L2-ZZ Regular Interests minus (ii) the aggregate of the Uncertificated Principal
Balances of the Class L2-1-A1, L2-2-A1, L2-2-A2, L2-2-A3, L2-2-A4, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8, L2-M9, L2-M10, and L2-M11 Regular Interests, in each case as of such date of determination.

REMIC II Overcollateralization Target Amount:  0.50% of the Overcollateralization Target Amount.

REMIC II Principal Loss Allocation Amount:  With respect to any Distribution Date, an
amount equal to the product of (i) 0.50% of the aggregate Principal Balance of the Mortgage Loans and REO Properties then outstanding and (ii) 1 minus a fraction, the numerator of which is 2 times the aggregate of the Class Principal Balances of the Class L2-1-A1,
L2-2-A1, L2-2-A2, L2-2-A3, L2-2-A4, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8, L2-M9, L2-M10, and L2-M11 Regular Interests and the denominator of which is the aggregate of the Class Principal Balances of the Class L2-1-A1, L2-2-A1, L2-2-A2, L2-2-A3,
L2-2-A4, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8, L2-M9, L2-M10, L2-M11, and L2-ZZ Regular Interests.

REMIC II Regular Interest: Any of the separate non-certificated beneficial ownership interests
in REMIC II issued hereunder and designated as a “Regular Interest” in REMIC II in the Preliminary Statement.  Each REMIC II Regular Interest shall accrue interest at the related rate specified in the Preliminary Statement as in effect from time to
time, and shall be entitled to distributions of principal (other than the Class L2-SW Regular Interest), subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Principal Balance as set forth in the Preliminary
Statement.

REMIC III:  The segregated pool of assets consisting of all of the REMIC II Regular
Interests conveyed in trust to the Trustee, for the benefit of the Holders of the Regular Certificates (other than the Class P Certificates), REMIC IV, as the holder of the Class L3-C Regular Interest, REMIC VI as holder of the Class L3-SW Regular Interest, and the
Class R Certificateholders, as holders of the Class R‐3 Interest, pursuant to Article II hereunder, and all amounts deposited therein, with respect to which a separate REMIC election is to be made.

REMIC III Available Distribution Amount:  For the Certificates (other than the Class C, Class P, and Residual Certificates), the REMIC III Regular
Interests, and the Class R-3 Residual Interest, on any Distribution Date, the aggregate of all distributions to the REMIC II Regular Interests (which amount shall be available for distributions to the Certificates (other than the Class C, Class P and Residual
Certificates), the REMIC III Regular Interests and the Class R-3 Residual Interest).

REMIC III Distribution Amount:  Subject to Section 4.05, the REMIC III Available Distribution Amount for any Distribution Date shall be
distributed among the Certificates (other than the Class C, Class P and Residual Certificates), the REMIC III Regular Interests and the Class R-3 Residual Interest in the following amounts and priority:

(a)        A portion of the REMIC III Available Distribution Amount equal to Group I Interest Remittance Amount for such Distribution Date, shall
be distributed:

(i)         first, to the Class L3-SW Regular Interest in an amount equal to the Group I Net Swap Payment for such
Distribution Date, and any unpaid Group I Net Swap Payments remaining unpaid from prior Distribution Dates;

(ii)        second, to the Class L3-SW Regular Interest in an amount equal to the Group II Net Swap Payment, and any
Group II Net Swap Payments remaining unpaid from prior Distribution Dates, to the extent not paid pursuant to paragraph (b)(i) of this definition of REMIC III Distribution Amount;

(iii)       third, to the Class I‐A Certificates, in an amount equal to the Monthly Interest Distributable Amount and any
Unpaid Interest Shortfall Amount for such Class; and

(iv)       fourth,concurrently, to the Class II-A-1 Certificates, the Class II-A-2 Certificates, the Class II-A-3 Certificates and
the Class II-A-4 Certificates, the Monthly Interest Distributable Amount and any Unpaid Interest Shortfall Amount for such Classes, in each case to the extent not paid pursuant to paragraph (b)(iii) of this definition of REMIC III Distribution Amount, pro
rata, based on their respective entitlements.

(b)        A portion of the REMIC III Available Distribution Amount equal to Group II Interest Remittance Amount for such Distribution Date,
shall be allocated:

(i)         first, to the Class L3-SW Regular Interest in an amount equal to the Group II Net Swap Payment for such
Distribution Date, and any unpaid Group II Net Swap Payments remaining unpaid from prior Distribution Dates;

(ii)        second, to the Class L3-SW Regular Interest in an amount equal to the Group I Net Swap Payment for such
Distribution Date, and any Group I Net Swap Payments remaining unpaid from prior Distribution Dates, to the extent not paid pursuant to paragraph (a)(i) of this definition of REMIC III Distribution Amount;

(iii)       third, concurrently, to the Class II-A-1 Certificates, the Class II-A-2 Certificates, the Class II-A-3
Certificates and the Class II-A-4 Certificates, in an amount equal to the Monthly Interest Distributable Amount and any Unpaid Interest Shortfall Amount for such Classes, pro rata, based on their respective entitlements; and

(iv)       fourth, to the Class I‐A Certificates, in an amount equal to the Monthly Interest Distributable Amount and any
Unpaid Interest Shortfall Amount for such Class, to the extent not paid pursuant to paragraph (a)(iii) of this definition of REMIC III Distribution Amount.

(c)        The sum of any Group I Interest Remittance Amount and Group II Interest Remittance Amount remaining undistributed following the
distributions pursuant to paragraphs (a) and (b) of this definition of REMIC III Distribution Amount shall be distributed as follows:

first, to the Class M‐1 Certificates, the related Monthly Interest Distributable Amount;

second, to the Class M‐2 Certificates, the related Monthly Interest Distributable Amount;

third, to the Class M‐3 Certificates, the related Monthly Interest Distributable Amount;

fourth, to the Class M‐4 Certificates, the related Monthly Interest Distributable Amount;

fifth, to the Class M‐5 Certificates, the related Monthly Interest Distributable Amount;

sixth, to the Class M‐6 Certificates, the related Monthly Interest Distributable Amount;

seventh, to the Class M‐7 Certificates, the related Monthly Interest Distributable Amount;

eighth, to the Class M‐8 Certificates, the related Monthly Interest Distributable Amount;

ninth, to the Class M‐9 Certificates, the related Monthly Interest Distributable Amount;

tenth, to the Class M-10 Certificates, the related Monthly Interest Distributable Amount; and

eleventh, to the Class M-11 Certificates, the related Monthly Interest Distributable Amount.

(d)        On each Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger Event is in effect, a portion of the REMIC III
Available Distribution Amount equal to the Group I Principal Distribution Amount shall be distributed in the following amounts and order of priority:

(i)         first, to the Class L3-SW Regular Interest in an amount equal to the Group I Net Swap Payment for such
Distribution Date, and any Group I Net Swap Payments remaining unpaid from prior Distribution Dates, to the extent not paid pursuant to paragraphs (a)(i) and (b)(ii) of this definition of REMIC III Distribution Amount;

(ii)        second, to the Class L3-SW Regular Interest in an amount equal to the Group II Net Swap Payment for such
Distribution Date, and any Group II Net Swap Payments remaining unpaid from prior Distribution Dates, to the extent not paid pursuant to paragraphs (a)(ii), (b)(i), and (e)(i) of this definition of REMIC III Distribution Amount;

(iii)       third, to the Class I-A Certificates, until the Certificate Principal Balance thereof has been reduced to zero;
and

(iv)       fourth, sequentially to the Class II-A-1 Certificates, the Class II-A-2 Certificates, the Class II-A-3 Certificates and
the Class II-A-4 Certificates, in each case until their Certificate Principal Balances have been reduced to zero; provided that, beginning on the first Distribution Date on or after which the Certificate Principal Balances of the Mezzanine Certificates have
been reduced to zero and the Net Monthly Excess Cashflow and Overcollateralized Amount for such Distribution Date are insufficient to cover Realized Losses on the Group II Mortgage Loans, principal distributions among the Group II Senior Certificates will be
allocated among them pro rata based on their Certificate Principal Balances, in each case until their Certificate Principal Balances have been reduced to zero.

(e)        On each Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger Event is in effect, a portion of the REMIC III
Available Distribution Amount equal to the Group II Principal Distribution Amount shall be distributed in the following amounts and order of priority:

(i)         first, to the Class L3-SW Regular Interest in an amount equal to the Group II Net Swap Payment for such
Distribution Date, and any Group II Net Swap Payments remaining unpaid from prior Distribution Dates, to the extent not paid pursuant to paragraphs (a)(ii) and (b)(i) of this definition of REMIC III Distribution Amount;

(ii)        second, to the Class L3-SW Regular Interest in an amount equal to the Group I Net Swap Payment for such
Distribution Date, and any Group I Net Swap Payments remaining unpaid from prior Distribution Dates, to the extent not paid pursuant to paragraphs (a)(i), (b)(ii), and (d)(i) of this definition of REMIC III Distribution Amount;

(iii)       third, sequentially to the Class II-A-1 Certificates, the Class II-A-2 Certificates, the Class II-A-3 Certificates and
the Class II-A-4 Certificates, in each case until their Certificate Principal Balances have been reduced to zero; provided that, beginning on the first Distribution Date on or after which the Certificate Principal Balances of the Mezzanine Certificates have
been reduced to zero and the Net Monthly Excess Cashflow and Overcollateralized Amount for such Distribution Date are insufficient to cover Realized Losses on the Group II Mortgage Loans, principal distributions among the Group II Senior Certificates will be
allocated among them pro rata based on their Certificate Principal Balances, in each case until their Certificate Principal Balances have been reduced to zero; and

(iv)       fourth, to the Class I-A Certificates, until the Certificate Principal Balance thereof has been reduced to
zero.

(f)         On each Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger Event is in effect, a portion of the REMIC III
Available Distribution Amount equal to the sum of any Group I Principal Distribution Amount and the Group II Principal Distribution Amount remaining undistributed following the distributions pursuant to paragraphs (d) and (e) of this definition of
REMIC III Distribution Amount shall be distributed in the following amounts and order of priority:

first, to the Class M‐1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero;

second, to the Class M‐2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero;

third, to the Class M‐3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero;

fourth, to the Class M‐4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero;

fifth, to the Class M‐5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero;

sixth, to the Class M‐6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero;

seventh, to the Class M‐7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero;

eighth, to the Class M‐8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero;

ninth, to the Class M‐9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero;

tenth, to the Class M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and

eleventh, to the Class M-11 Certificates, until the Certificate Principal Balance thereof has been reduced to zero.

(g)        On each Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger Event is not in effect, a portion of the REMIC
III Available Distribution Amount equal to the Group I Principal Distribution Amount shall be distributed in the following amounts and order of priority:

(i)         first, to the Class L3-SW Regular Interest in an amount equal to the Group I Net Swap Payment for such
Distribution Date, and any Group I Net Swap Payments remaining unpaid from prior Distribution Dates, to the extent not paid pursuant to paragraphs (a)(i) and (b)(ii) of this definition of REMIC III Distribution Amount;

(ii)        second, to the Class L3-SW Regular Interest in an amount equal to the Group II Net Swap Payment for such
Distribution Date, and any Group II Net Swap Payments remaining unpaid from prior Distribution Dates, to the extent not paid pursuant to paragraphs (a)(ii), (b)(i), and (h)(i) of this definition of REMIC III Distribution Amount;

(iii)       third, to the Class I-A Certificates, the Group I Senior Principal Distribution Amount, until the Certificate
Principal Balance thereof has been reduced to zero; and

(iv)       fourth, sequentially to the Group II Senior Certificates, the Group II Senior Principal Distribution Amount, to the
extent not paid pursuant to paragraph (h)(iii) of this definition of REMIC III Distribution Amount, in each case until their Certificate Principal Balances have been reduced to zero; provided that beginning on the first Distribution Date on or after which the
Certificate Principal Balances of the Mezzanine Certificates have been reduced to zero and the Net Monthly Excess Cashflow and Overcollateralized Amount for such Distribution Date are insufficient to cover realized losses on the Group II Loans, principal
distributions among the Group II Senior Certificates will be allocated pro rata based on their Certificate Principal Balances.

(h)        On each Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger Event is not in effect, a portion of the REMIC
III Available Distribution Amount equal to the Group II Principal Distribution Amount shall be distributed in the following amounts and order of priority:

(i)         first, to the Class L3-SW Regular Interest in an amount equal to the Group II Net Swap Payment for such
Distribution Date, and any Group II Net Swap Payments remaining unpaid from prior Distribution Dates, to the extent not paid pursuant to paragraphs (a)(ii) and (b)(i) of this definition of REMIC III Distribution Amount;

(ii)        second, to the Class L3-SW Regular Interest in an amount equal to the Group I Net Swap Payment for such
Distribution Date, and any Group I Net Swap Payments remaining unpaid from prior Distribution Dates, to the extent not paid pursuant to paragraphs (a)(i), (b)(ii), and (g)(i) of this definition of REMIC III Distribution Amount;

(iii)       third, sequentially to the Group II Senior Certificates, the Group II Senior Principal Distribution Amount, in each
case until their Certificate Principal Balances have been reduced to zero; provided that beginning on the first Distribution Date on or after which the Certificate Principal Balances of the Mezzanine Certificates have been reduced to zero and the Net Monthly
Excess Cashflow and Overcollateralized Amount for such Distribution Date are insufficient to cover realized losses on the Group II Loans, principal distributions among the Group II Senior Certificates will be allocated pro rata based on their Certificate
Principal Balances; and

(iv)       fourth, to the Class I-A Certificates, the Group I Senior Principal Distribution Amount, to the extent not paid
pursuant to paragraph (g)(i) of this definition of REMIC III Distribution Amount, until the Certificate Principal Balance thereof has been reduced to zero.

(i)         On each Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger Event is not in effect, a portion of the
REMIC III Available Distribution Amount equal to the sum of any Group I Principal Distribution Amount and Group II Principal Distribution Amount remaining undistributed following the distribution pursuant to paragraphs (g) and (h) of this definition
of REMIC III Distribution Amount shall be distributed in the following order of priority:

first, to the Class M‐1 Certificates, the Class M‐1 Principal Distribution Amount, until the Certificate Principal Balance thereof has been
reduced to zero;

second, to the Class M‐2 Certificates, the Class M‐2 Principal Distribution Amount, until the Certificate Principal Balance thereof has been
reduced to zero;

third, to the Class M‐3 Certificates, the Class M‐3 Principal Distribution Amount, until the Certificate Principal Balance thereof has been
reduced to zero;

fourth, to the Class M‐4 Certificates, the Class M‐4 Principal Distribution Amount, until the Certificate Principal Balance thereof has been
reduced to zero;

fifth, to the Class M‐5 Certificates, the Class M‐5 Principal Distribution Amount, until the Certificate Principal Balance thereof has been
reduced to zero;

sixth, to the Class M‐6 Certificates, the Class M‐6 Principal Distribution Amount, until the Certificate Principal Balance thereof has been
reduced to zero;

seventh, to the Class M‐7 Certificates, the Class M‐7 Principal Distribution Amount, until the Certificate Principal Balance thereof has
been reduced to zero;

eighth, to the Class M‐8 Certificates, the Class M‐8 Principal Distribution Amount, until the Certificate Principal Balance thereof has been
reduced to zero;

ninth, to the Class M‐9 Certificates, the Class M‐9 Principal Distribution Amount, until the Certificate Principal Balance thereof has been
reduced to zero;

tenth, to the Class M-10 Certificates, the Class M-10 Principal Distribution Amount, until the Certificate Principal Balance thereof has been reduced to
zero; and

eleventh, to the Class M-11 Certificates, the Class M-11 Principal Distribution Amount, until the Certificate Principal Balance thereof has been reduced
to zero.

(j)         On each Distribution Date, any REMIC III Available Distribution Amount remaining undistributed after the distributions in paragraphs (a)
through (i) of this definition of REMIC III Distribution Amount shall be distributed in the following order of priority:

(i)         to the Class or Classes of Certificates then entitled to receive distributions in respect of principal, in an
amount equal to the sum of any Extra Principal Distribution Amount and the Remaining Principal Distribution Amount for such Distribution Date, payable to such Class or Classes of Certificates as part of the Group I Principal Distribution Amount or the Group II
Principal Distribution Amount, as applicable, pursuant to paragraphs (d) through (i) of this definition of REMIC III Distribution Amount, as applicable;

(ii)        concurrently, to the Class A Certificates, in an amount equal to the Unpaid Interest Shortfall Amount, if any,
for such Classes for such Distribution Date to the extent remaining unpaid after distributions pursuant to paragraphs (a) and (b) of this definition of REMIC III Distribution Amount on such Distribution Date, allocated among such classes pro rata based
on their respective remaining entitlements;

(iii)       to the Class M‐1 Certificates, in an amount equal to the Unpaid Interest Shortfall Amount, if any, for such Class for
such Distribution Date;

(iv)       to the Class M‐1 Certificates, in an amount equal to the Allocated Realized Loss Amount, if any, for such Class for such
Distribution Date;

(v)        to the Class M-2 Certificates, in an amount equal to the Unpaid Interest Shortfall Amount, if any, for such Class for
such Distribution Date;

(vi)       to the Class M-2 Certificates, in an amount equal to the Allocated Realized Loss Amount, if any, for such Class for such
Distribution Date;

(vii)      to the Class M-3 Certificates, in an amount equal to the Unpaid Interest Shortfall Amount, if any, for such Class for such
Distribution Date;

(viii)      to the Class M-3 Certificates, in an amount equal to the Allocated Realized Loss Amount, if any, for such Class for such
Distribution Date;

(ix)       to the Class M‐4 Certificates, in an amount equal to the Unpaid Interest Shortfall Amount, if any, for such Class for
such Distribution Date;

(x)        to the Class M‐4 Certificates, in an amount equal to the Allocated Realized Loss Amount, if any, for such Class for
such Distribution Date;

(xi)       to the Class M-5 Certificates, in an amount equal to the Unpaid Interest Shortfall Amount, if any, for such Class for such
Distribution Date;

(xii)      to the Class M-5 Certificates, in an amount equal to the Allocated Realized Loss Amount, if any, for such Class for such
Distribution Date;

(xiii)      to the Class M-6 Certificates, in an amount equal to the Unpaid Interest Shortfall Amount, if any, for such Class for such
Distribution Date;

(xiv)     to the Class M-6 Certificates, in an amount equal to the Allocated Realized Loss Amount, if any, for such Class for such Distribution
Date;

(xv)      to the Class M-7 Certificates, in an amount equal to the Unpaid Interest Shortfall Amount, if any, for such Class for such
Distribution Date;

(xvi)     to the Class M-7 Certificates, in an amount equal to the Allocated Realized Loss Amount, if any, for such Class for such Distribution
Date;

(xvii)     to the Class M‐8 Certificates, in an amount equal to the Unpaid Interest Shortfall Amount, if any, for such Class for such Distribution
Date;

(xviii)    to the Class M‐8 Certificates, in an amount equal to the Allocated Realized Loss Amount, if any, for such Class for such Distribution
Date;

(xix)     to the Class M‐9 Certificates, in an amount equal to the Unpaid Interest Shortfall Amount, if any, for such Class for such
Distribution Date;

(xx)      to the Class M‐9 Certificates, in an amount equal to the Allocated Realized Loss Amount, if any, for such Class for such
Distribution Date;

(xxi)     to the Class M-10 Certificates, in an amount equal to the Unpaid Interest Shortfall Amount, if any, for such Class for such Distribution
Date;

(xxii)     to the Class M-10 Certificates, in an amount equal to the Allocated Realized Loss Amount, if any, for such Class for such Distribution
Date;

(xxiii)    to the Class M-11 Certificates, in an amount equal to the Unpaid Interest Shortfall Amount, if any, for such Class for such Distribution
Date;

(xxiv)    to the Class M-11 Certificates, in an amount equal to the Allocated Realized Loss Amount, if any, for such Class for such Distribution
Date;

(xxv)    to the Class L3-C Regular Interest (in part for further payment on to the Reserve Fund and the Supplemental Interest Trust pursuant to Section
4.05 of this Agreement), the sum of (A) the Interest Distribution Amount for the Class L3‐C Regular Interest, plus (B) until the Uncertificated Principal Balance of the Class L3‐C Regular Interest is reduced to zero, any Overcollateralization Release
Amount for such Distribution Date, plus (C) until the Uncertificated Principal Balance of the Class L3‐C Regular Interest is reduced to zero, on any Distribution Date on which the Certificate Principal Balances of the Class A Certificates and the Mezzanine
Certificates has been reduced to zero, any remaining amounts for such Distribution Date; and

(xxvi)    any remaining amounts to the Class R Certificates (in respect of the Class R-3 Residual Interest).

REMIC III Regular Interests:  The Class L3-C and Class L3-SW Regular Interests.

REMIC IV:  The segregated pool of assets consisting of the Class L3‐C Regular Interest, conveyed in trust to the
Trustee, for the benefit of the Holders of the Class C Certificates and the Class R‐CX Certificates in respect of the Class R-4 Residual Interests, pursuant to Article II hereunder, and all amounts deposited therein, with respect to which a separate REMIC
election is to be made.

REMIC IV Available Distribution Amount:  For the Class C Certificates and the Class R-4 Residual Interest, on any Distribution Date, the aggregate
of all distributions to the Class L3-C Regular Interest (which amount shall be available for distribution to the Class C Certificates and the Class R-4 Residual Interest).

REMIC IV Distribution Amount:  Subject to Section 4.05, the REMIC IV Available Distribution Amount for any Distribution Date shall be distributed
to the Class C Certificates.

REMIC IV Regular Interest: Any of the separate non-certificated beneficial ownership interests in REMIC IV issued hereunder and designated as a
“Regular Interest” in REMIC IV in the Preliminary Statement.  Each REMIC IV Regular Interest shall accrue interest at the related rate specified in the Preliminary Statement as in effect from time to time, but shall not be entitled to distributions
of principal, as set forth in the Preliminary Statement.

REMIC V:  The segregated pool of assets consisting of the Class P Interest, conveyed in trust to the Trustee, for the
benefit of the Holders of the Class L1‐P Regular Certificates and the Class R‐PX Certificates, pursuant to Article II hereunder, and all amounts deposited therein, with respect to which a separate REMIC election is to be made.

REMIC V Available Distribution Amount:  For the Class P Certificates and the Class R-5 Residual Interest, on any Distribution Date, the aggregate
of all distributions to the Class L1-P Regular Interest (which amount shall be available for distribution to the Class P Certificates and the Class R-5 Residual Interest).

REMIC V Distribution Amount:  The REMIC V Available Distribution Amount for any Distribution Date shall be distributed to the Class P
Certificates.

REMIC VI:  The segregated pool of assets consisting of the Class L3‐SW Regular Interest, conveyed in trust to
the Trustee, for the benefit of the Holders of the Class L6-SW Regular Interest and the Class R-CX Certificates in respect of the Class R‐6 Residual Interest, pursuant to Article II hereunder, and all amounts deposited therein, with respect to which a separate
REMIC election is to be made.

REMIC VI Available Distribution Amount:  For the Class L6-SW Regular Interest and the Class R-6 Residual Interest, on any Distribution Date, the
aggregate of all distributions to the Class L3-SW Regular Interest (which amount shall be available for distribution to the Class L6-SW Regular Interest and the Class R-6 Residual Interest).

REMIC VI Distribution Amount:  The REMIC VI Available Distribution Amount for any Distribution Date shall be distributed to the Class L6-SW
Regular Interest, which amount shall be made available for payment to the Swap Counterparty as provided in Section 4.05.

REMIC:  A “real estate mortgage investment conduit” within the meaning of Section 860D of the
Code.

REMIC Net WAC Rate:  For any Distribution Date and the regular interests in REMIC III the ownership of which is
represented by the Group I Senior Certificates, a rate equal to the Certificate Interest Rate for the Class L2‐1‐GP Regular Interest multiplied by a fraction, the numerator of which is 30 and the denominator of which is the actual number of days elapsed
in the related Accrual Period.  For any Distribution Date and the regular interests in REMIC III the ownership of which is represented by the Group II Senior Certificates, a rate equal to the Class Interest Rate for the Class L2‐2‐GP Regular Interest
multiplied by a fraction, the numerator of which is 30 and the denominator of which is the actual number of days elapsed in the related Accrual Period.  For any Distribution Date and the regular interests in REMIC III the ownership of which is represented by the
Mezzanine Certificates, a rate equal to the weighted average of the Certificate Interest Rates on (a) the Class L2-1-SB Regular Interest, subject to a cap and a floor equal to the Certificate Interest Rate for the Class L2-1-GP Regular Interest and (b) the Class
L2-2-SB Regular Interest, subject to a cap and a floor equal to the Certificate Interest Rate for the Class L2-2-GP Regular Interest, weighted on the basis of the Uncertificated Principal Balance of each such Regular Interest, multiplied by a fraction, the numerator
of which is 30 and the denominator of which is the actual number of days elapsed in the related Accrual Period.

REMIC Provisions:  Provisions of the federal income tax law relating to real estate mortgage investment conduits which
appear at Section 860A through 860G of Subchapter M of Chapter 1 of the Code, and related provisions, and regulations and rulings promulgated thereunder, as the foregoing may be in effect from time to time.

REMIC Regular Interests:  The REMIC I Regular Interests, the REMIC II Regular Interests, the REMIC III Regular
Interests and the Class L6-SW Regular Interest.

Remittance Report:  A report prepared by the Servicer and delivered to the NIMS Insurer and the Trustee pursuant to
Section 4.02.

Rents from Real Property:  With respect to any REO Property, gross income of the character described in
Section 856(d) of the Code.

REO Account:  The account or accounts maintained by the Servicer in respect of an REO Property pursuant to
Section 3.23.

REO Disposition:  The sale or other disposition of an REO Property on behalf of the Trust Fund.

REO Imputed Interest:  As to any REO Property, for any calendar month during which such REO Property was at any time
part of the Trust Fund, one month’s interest at the applicable Net Mortgage Rate on the Principal Balance of such REO Property (or, in the case of the first such calendar month, of the related Mortgage Loan if appropriate) as of the Close of Business on the
Distribution Date in such calendar month.

REO Principal Amortization:  With respect to any REO Property, for any calendar month, the excess, if any, of
(a) the aggregate of all amounts received in respect of such REO Property during such calendar month, whether in the form of rental income, sale proceeds (including, without limitation, that portion of the Termination Price paid in connection with a purchase of
all of the Mortgage Loans and REO Properties pursuant to Section 9.01 that is allocable to such REO Property) or otherwise, net of any portion of such amounts (i) payable pursuant to Section 3.23 in respect of the proper operation, management and
maintenance of such REO Property or (ii) payable or reimbursable to the Servicer pursuant to Section 3.23 for unpaid Servicing Fees in respect of the related Mortgage Loan and unreimbursed Servicing Advances and Advances in respect of such REO Property or
the related Mortgage Loan, over (b) the REO Imputed Interest in respect of such REO Property for such calendar month.

REO Property:  A Mortgaged Property acquired by the Servicer on behalf of the Trust Fund through foreclosure or
deed‐in‐lieu of foreclosure, as described in Section 3.23.

Replacement Payment:  As defined in Section 3.27(b) hereof.

Reserve Fund:  The reserve fund established pursuant to Section 3.22.

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

Residential Dwelling:  Any one of the following:  (i) a detached one‐family dwelling, (ii) a
detached two‐ to four‐family dwelling, (iii) a one‐family dwelling unit in a Fannie Mae eligible condominium project or a Freddie Mac eligible condominium project, (iv) a manufactured home, or (v) a detached one‐family dwelling
in a planned unit development, none of which is a co‐operative or mobile home.

Residual Certificates:  The Class R Certificates, the Class R‐CX Certificates and the Class R‐PX
Certificates.

Residual Interest:  The sole class of “residual interests” in a REMIC within the meaning of
Section 860G(a)(2) of the Code.

Residual NIM Holder:  As defined in Section 3.16(c) hereof.

Responsible Officer:  When used with respect to the Trustee or the Delaware Trustee, any officer assigned to and
working in the Corporate Trust Office (in the case of the Trustee) or its corporate trust office (in the case of the Delaware Trustee) or, in each case, in a similar group 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.

S&P:  Standard & Poor’s, a division of The McGraw‐Hill Companies, Inc.

Secretary of State:  The Secretary of State of the State of Delaware.

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

Seller:  For each Mortgage Loan, the seller of such Mortgage Loan pursuant to the Mortgage Loan Purchase
Agreement. 

Servicer:  Washington Mutual Bank, or any successor thereto appointed as provided pursuant to Section 7.02, acting to
service and administer the Mortgage Loans pursuant to Section 3.01.

Servicer Prepayment Charge Payment Amount:  The amounts (i) payable by the Servicer in respect of any Prepayment
Charges waived other than in accordance with the standard set forth in Section 3.29(a) or (ii) collected from the Seller in respect of a remedy for the breach of the representation and warranty made by the Seller set forth in Section 3.4 of the
Mortgage Loan Purchase Agreement.

Servicer Remittance Date:  With respect to any Distribution Date, 3:00 p.m. New York time on the Business Day
preceding the Distribution Date.

Servicing Account:  The account or accounts created and maintained pursuant to Section 3.09.

Servicing Advances:  All customary, reasonable and necessary “out of pocket” costs and expenses (including
reasonable attorneys’ fees and expenses) incurred by the Servicer in the performance of its servicing obligations in connection with a default, delinquencies or other unanticipated event or where reimbursement is otherwise permitted in accordance with any of
the terms of this Agreement, including, but not limited to, the cost of (i) the preservation, restoration, inspection and protection of the Mortgaged Property, (ii) any enforcement or judicial proceedings, including foreclosures, and including any expenses
incurred in relation to any such proceedings that result from the Mortgage Loan being registered in the MERS® System, (iii) the management and liquidation of the REO Property and (iv) compliance with the obligations under Sections 3.01, 3.09, 3.14,
3.16, and 3.23.

Servicing Fee:  With respect to each Mortgage Loan and for any calendar month, an amount equal to one month’s
interest (or in the event of any payment of interest which accompanies a Principal Prepayment in full made by the Mortgagor during such calendar month, interest for the number of days covered by such payment of interest) at the Servicing Fee Rate on the same
principal amount on which interest on such Mortgage Loan accrues for such calendar month.  A portion of such Servicing Fee may be retained by any Sub‐Servicer as its servicing compensation.

Servicing Fee Rate:  0.50% per annum.

Servicing Officer:  Any officer of the Servicer involved in, or responsible for, the administration and servicing of Mortgage Loans.

Stated Principal Balance:  With respect to any Mortgage Loan:  (a) as of any date of determination up to but
not including the Distribution Date on which the proceeds, if any, of a Liquidation Event with respect to such Mortgage Loan would be distributed, the related Cut‐off Date Principal Balance, as shown in the Mortgage Loan Schedule, minus the sum of (i) the
principal portion of each Monthly Payment due on a Due Date subsequent to the Cut‐off Date, to the extent received from the Mortgagor or advanced by the Servicer and distributed pursuant to Article IV on or before such date of determination, (ii) all
Principal Prepayments received after the Cut‐off Date, to the extent distributed pursuant to the definition of REMIC III Distribution Amount on or before such date of determination, (iii) all Liquidation Proceeds and Insurance Proceeds to the extent
distributed pursuant to the definition of REMIC III Distribution Amount on or before such date of determination, and (iv) any Realized Loss incurred with respect thereto as a result of a Deficient Valuation made during or prior to the Due Period for the most
recent Distribution Date coinciding with or preceding such date of determination; and (b) as of any date of determination coinciding with or subsequent to the Distribution Date on which the proceeds, if any, of a Liquidation Event with respect to such Mortgage
Loan would be distributed, zero.  With respect to any REO Property:  (a) as of any date of determination up to but not including the Distribution Date on which the proceeds, if any, of a Liquidation Event with respect to such REO Property would be
distributed, an amount (not less than zero) equal to the Stated Principal Balance of the related Mortgage Loan as of the date on which such REO Property was acquired on behalf of the Trust Fund, minus the aggregate amount of REO Principal Amortization in respect of
such REO Property for all previously ended calendar months, to the extent distributed pursuant to Article IV on or before such date of determination; and (b) as of any date of determination coinciding with or subsequent to the Distribution Date on which the
proceeds, if any, of a Liquidation Event with respect to such REO Property would be distributed, zero.

Statutory Trust Statute:  Chapter 38 of Title 12 of the Delaware Code, 12 Del.C. §3801 et seq., as the same may be amended from
time to time.

Stayed Funds:  If the Servicer is the subject of a proceeding under the federal Bankruptcy Code and the making of a
remittance to the Trustee hereunder is prohibited by Section 362 of the federal Bankruptcy Code, funds that are in the custody of the Servicer, a trustee in bankruptcy or a federal bankruptcy court and should have been remitted absent such prohibition.

Stepdown Date:  The earlier of (a) the later of (i) the Distribution Date in April 2009 and (ii) the first
Distribution Date on which the Credit Enhancement Percentage (calculated for this purpose only after taking into account payments of principal on the Mortgage Loans due on the related Due Date or received during the related Prepayment Period but prior to distribution
of the Principal Distribution Amount in respect of the Certificates then entitled to distributions of principal on such Distribution Date) is greater than or equal to 46.80% and (b) the date on which the aggregate Certificate Principal
Balance of the Class A Certificates has been reduced to zero.

Subordinated Net WAC Rate:  For any Distribution Date with respect to the Mezzanine
Certificates, a per annum rate (subject to adjustment based on the actual number of days elapsed in the related Interest Accrual Period) equal to the weighted average (weighted on the basis of the results of subtracting from the aggregate Stated Principal Balance of
each Loan Group the current aggregate Certificate Principal Balance of the related Class A Certificates) of the Net WAC Pass-Through Rate for the Group I Certificates and the Net WAC Pass-Through Rate for the Group II Certificates. 

Sub‐Servicer:  Any Person with which the Servicer has entered into a Sub‐Servicing Agreement and which
meets the qualifications of a Sub‐Servicer pursuant to Section 3.02.

Sub‐Servicing Account:  An account or accounts established by a Sub‐Servicer which meets the requirements
set forth in Section 3.08 and is otherwise acceptable to the applicable Servicer.

Sub‐Servicing Agreement:  The written contract between the Servicer and a Sub‐Servicer relating to
servicing and administration of certain Mortgage Loans as provided in Section 3.02.

Subsequent Recoveries:  The Gross Subsequent Recoveries net of amounts payable or reimbursable to the Servicer for
related (i) Advances, (ii) Servicing Advances and (iii) Servicing Fees.

Substitution Adjustments:  As defined in Section 2.08 hereof.

Supplemental Interest Account:  As defined in Section 4.09(a) hereof.

Supplemental Interest Trust:  As defined in Section 4.09(a) hereof.

Supplemental Interest Trust Trustee:  LaSalle Bank National Association, not in its individual capacity but solely in its capacity as a
trustee of the Supplemental Interest Trust, and any successor thereto.

Swap Agreement:  The swap agreement consisting of a 1992 ISDA Master Agreement (Multicurrency Border) and a schedule
dated as of the Closing Date and the related confirmation thereto, between the Supplemental Interest Trust and the Swap Counterparty, attached as Exhibit E hereto, as such agreement may be amended and supplemented in accordance with its terms.

Swap Counterparty:  ABN AMRO Bank N.V. or any successor in interest thereto in accordance with the Swap Agreement.

Swap Default:  The effective designation of an Early Termination Date in respect of the Swap Agreement following the
occurrence of a Swap Event of Default, a Termination Event with respect to the Swap Agreement or an Additional Termination Event with respect to the Swap Agreement.

Swap Event of Default:  An “Event of Default” as such term is defined in the Swap Agreement.

Swap LIBOR: A per annum rate equal to the floating rate payable by the Swap Provider under the Swap Agreement.

Swap Notional Amount:  With respect to any Distribution Date is the amount set forth on Schedule II attached hereto
with respect to such Distribution Date.

Swap Payment:  With respect to each Distribution Date, an amount equal to the product of (a) 5.1375%, (b) the Swap Notional Amount and (c) a fraction, the numerator of which is 30 and the denominator of which 360.

Swap Rate:  With respect to any Distribution Date, the rate payable by the Supplemental Interest Trust as specified in
the Swap Agreement.

Swap Termination Payment:  Upon the designation of an “Early Termination Date” as defined in the Swap
Agreement, the payment to be made by the Supplemental Interest Trust to the Swap Counterparty, or by the Swap Counterparty to the Supplemental Interest Trust, as applicable, pursuant to the terms of the Swap Agreement.

Tax Matters Person: With respect to each of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC VI, the Holder of a
Class R, Class R-CX or Class R-PX Certificate with a Percentage Interest of at least 0.01% specified herein, or any Permitted Transferee of such Class R, Class R-CX or Class R-PX Certificateholder designated as succeeding to the position of Tax Matters Person in a
notice to the Trustee signed by authorized representatives of the transferor and transferee of such Class R, Class R-CX or Class R-PX Certificate, which Tax Matters Person shall be the tax matters person for each REMIC within the meaning of Section 6231(a)(7) of the
Code and Treasury Regulation Section 1.860F-4(d).  The initial Holder of all of the Class R, Class R-CX and Class R-PX is hereby appointed to act as Tax Matters Person for each REMIC so long as it holds a Class R, Class R-CX, and Class R-PX Certificate with a
Percentage Interest of at least 0.01%.  If such initial Holder ceases to hold a Class R, Class R-CX or Class R-PX Certificate with the required Percentage Interest, and fails to designate a successor as provided in the first sentence of this definition of
“Tax Matters Person,” the Holder of the Class R Certificate with the largest Percentage Interest shall be Tax Matters Person with respect to REMIC I, REMIC II, and REMIC III, the Holder of the Class R-CX Certificate with the largest Percentage Interest
shall be Tax Matters Person with respect to REMIC IV and REMIC VI, and the Holder of the Class R-PX Certificate with the largest Percentage Interest shall be Tax Matters Person with respect to REMIC V.  In all cases, the Tax Matters Person(s) shall be deemed to
have appointed the Trustee to act as agent for the Tax Matters Person(s), to perform the functions of such Tax Matters Person(s) as provided herein.  If the Tax Matters Person becomes a Disqualified Organization, the last preceding Holder that is not a
Disqualified Organization of the Class R, Class R-CX or Class R-PX Certificate held by the Disqualified Organization shall be Tax Matters Person pursuant to and as permitted by Section 5.01(c).  If any Person is appointed as tax matters person by the Internal
Revenue Service pursuant to the Code, such Person shall be Tax Matters Person.

Telerate Page 3750:  The display designated as page “3750” on the Dow Jones Telerate Capital Markets
Report (or such other page as may replace page 3750 on that report for the purpose of displaying London interbank offered rates of major banks).

Termination Event:  As defined in the Swap Agreement.

Termination Date:  The date upon which final payment of the Certificates will be made pursuant to the procedures set forth in Section 9.01(b).

Termination Payment:  The final payment delivered to the Certificateholders on the Termination Date pursuant to the procedures set forth in
Section 9.01(b).

Termination Price:  As defined in Section 9.01(a) hereof.

Terminator:  As defined in Section 9.01.

Transfer:  Any direct or indirect transfer, sale, pledge, hypothecation, or other form of assignment of any Ownership
Interest in a Certificate.

Transferee Affidavit and Agreement:  An affidavit and agreement in the form attached hereto as Exhibit J.

Transferee:  Any Person who is acquiring by Transfer any Ownership Interest in a Certificate.

Transferor:  Any Person who is disposing by Transfer of any Ownership Interest in a Certificate.

Trigger Event: A Trigger Event has occurred with respect to a Distribution Date if either a Cumulative Loss Trigger Event
or a Delinquency Trigger Event has occurred with respect to such Distribution Date.

Trust:  Washington Mutual Asset-Backed Certificates WMABS, Series 2006-HE1 Trust, a Delaware statutory trust, created
pursuant to the Original Trust Agreement.

Trust Fund:  All of the assets of the Trust, which is the trust created hereunder consisting of REMIC I, REMIC II,
REMIC III, REMIC IV, REMIC V, REMIC VI, the Reserve Fund, the Supplemental Interest Trust, and any Servicer Prepayment Charge Payment Amounts and the Trust’s rights under the Swap Agreement.

Trust REMIC:  Any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC VI.

Trustee:  LaSalle Bank National Association, not in its individual capacity but solely as trustee, or its
successor-in-interest as provided in Section 8.09, or any successor trustee appointed as herein provided.

Trustee Fee:  With respect to each Distribution Date, one-twelfth of the Trustee Fee Rate multiplied by the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (prior to giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal
received during the related Prepayment Period). 

Trustee Fee Rate:  0.0035% per annum.

Uncertificated Notional Amount: With respect to the Class L2-SW and Class L3-SW Regular
Interests and each Distribution Date listed below, the aggregate Uncertificated Principal Balance of the REMIC I Regular Interests ending with the designation “A” listed below:

	

Distribution Date

	

REMIC I Regular Interests

	
2

	
L1-Y-1A through L1-Y-55A and L1-Z-1A through L1-Z-55A

	
3

	
L1-Y-2A through L1-Y-55A and L1-Z-2A through L1-Z-55A

	
4

	
L1-Y-3A through L1-Y-55A and L1-Z-3A through L1-Z-55A

	
5

	
L1-Y-4A through L1-Y-55A and L1-Z-4A through L1-Z-55A

	
6

	
L1-Y-5A through L1-Y-55A and L1-Z-5A through L1-Z-55A

	
7

	
L1-Y-6A through L1-Y-55A and L1-Z-6A through L1-Z-55A

	
8

	
L1-Y-7A through L1-Y-55A and  L1-Z-7A through L1-Z-55A

	
9

	
L1-Y-8A through L1-Y-55A and  L1-Z-8A through L1-Z-55A

	
10

	
L1-Y-9A through L1-Y-55A and  L1-Z-9A through L1-Z-55A

	
11

	
L1-Y-10A through L1-Y-55A and  L1-Z-10A through L1-Z-55A

	
12

	
L1-Y-11A through L1-Y-55A and  L1-Z-11A through L1-Z-55A

	
13

	
L1-Y-12A through L1-Y-55A and  L1-Z-12A through L1-Z-55A

	
14

	
L1-Y-13A through L1-Y-55A and  L1-Z-13A through L1-Z-55A

	
15

	
L1-Y-14A through L1-Y-55A and  L1-Z-14A through L1-Z-55A

	
16

	
L1-Y-15A through L1-Y-55A and  L1-Z-15A through L1-Z-55A

	
17

	
L1-Y-16A through L1-Y-55A and  L1-Z-16A through L1-Z-55A

	
18

	
L1-Y-17A through L1-Y-55A and  L1-Z-17A through L1-Z-55A

	
19

	
L1-Y-18A through L1-Y-55A and  L1-Z-18A through L1-Z-55A

	
20

	
L1-Y-19A through L1-Y-55A and L1-Z-19A through L1-Z-55A

	
21

	
L1-Y-20A through L1-Y-55A and L1-Z-20A through L1-Z-55A

	
22

	
L1-Y-21A through L1-Y-55A and L1-Z-21A through L1-Z-55A

	
23

	
L1-Y-22A through L1-Y-55A and L1-Z-22A through L1-Z-55A

	
24

	
L1-Y-23A through L1-Y-55A and L1-Z-23A through L1-Z-55A

	
25

	
L1-Y-24A through L1-Y-55A and L1-Z-24A through L1-Z-55A

	
26

	
L1-Y-25A through L1-Y-55A and L1-Z-25A through L1-Z-55A

	
27

	
L1-Y-26A through L1-Y-55A and L1-Z-26A through L1-Z-55A

	
28

	
L1-Y-27A through L1-Y-55A and L1-Z-27A through L1-Z-55A

	
29

	
L1-Y-28A through L1-Y-55A and L1-Z-28A through L1-Z-55A

	
30

	
L1-Y-29A through L1-Y-55A and L1-Z-29A through L1-Z-55A

	
31

	
L1-Y-30A through L1-Y-55A and L1-Z-30A through L1-Z-55A

	
32

	
L1-Y-31A through L1-Y-55A and L1-Z-31A through L1-Z-55A

	
33

	
L1-Y-32A through L1-Y-55A and L1-Z-32A through L1-Z-55A

	
34

	
L1-Y-33A through L1-Y-55A and L1-Z-33A through L1-Z-55A

	
35

	
L1-Y-34A through L1-Y-55A and L1-Z-34A through L1-Z-55A

	
36

	
L1-Y-35A through L1-Y-55A and L1-Z-35A through L1-Z-55A

	
37

	
L1-Y-36A through L1-Y-55A and L1-Z-36A through L1-Z-55A

	
38

	
L1-Y-37A through L1-Y-55A and L1-Z-37A through L1-Z-55A

	
39

	
L1-Y-38A through L1-Y-55A and L1-Z-38A through L1-Z-55A

	
40

	
L1-Y-39A through L1-Y-55A and L1-Z-39A through L1-Z-55A

	
41

	
L1-Y-40A through L1-Y-55A and L1-Z-40A through L1-Z-55A

	
42

	
L1-Y-41A through L1-Y-55A and L1-Z-41A through L1-Z-55A

	
43

	
L1-Y-42A through L1-Y-55A and L1-Z-42A through L1-Z-55A

	
44

	
L1-Y-43A through L1-Y-55A and L1-Z-43A through L1-Z-55A

	
45

	
L1-Y-44A through L1-Y-55A and L1-Z-44A through L1-Z-55A

	
46

	
L1-Y-45A through L1-Y-55A and L1-Z-45A through L1-Z-55A

	
47

	
L1-Y-46A through L1-Y-55A and L1-Z-46A through L1-Z-55A

	
48

	
L1-Y-47A through L1-Y-55A and L1-Z-47A through L1-Z-55A

	
49

	
L1-Y-48A through L1-Y-55A and L1-Z-48A through L1-Z-55A

	
50

	
L1-Y-49A through L1-Y-55A and L1-Z-49A through L1-Z-55A

	
51

	
L1-Y-50A through L1-Y-55A and L1-Z-50A through L1-Z-55A

	
52

	
L1-Y-51A through L1-Y-55A and L1-Z-51A through L1-Z-55A

	
53

	
L1-Y-52A through L1-Y-55A and L1-Z-52A through L1-Z-55A

	
54

	
L1-Y-53A through L1-Y-55A and L1-Z-53A through L1-Z-55A

	
55

	
L1-Y-54A and L1-Y-55A and L1-Z-54A and L1-Z-55A

	
56

	
L1-Y-55A and L1-Z-55A

	
thereafter

	
$0.00

 

Undercollateralized Amount:  With respect to any Distribution Date, the amount, if any, by which (i) the sum of
the aggregate Certificate Principal Balances of the Class A Certificates and the Mezzanine Certificates and the Uncertificated Principal Balance of the Class P Interest as of such Distribution Date (after giving effect to distributions to be made on such Distribution
Date) exceeds (ii) the aggregate Stated Principal Balance of the Mortgage Loans on the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment Period).

Uninsured Cause:  Any cause of damage to a Mortgaged Property such that the complete restoration of such property is
not fully reimbursable by the hazard insurance policies required to be maintained pursuant to Section 3.14.

Unpaid Interest Shortfall Amount:  With respect to the Class A Certificates and the Mezzanine Certificates and
(i) the first Distribution Date, zero, and (ii) any Distribution Date after the first Distribution Date, the amount, if any, by which (a) the sum of (1) the Monthly Interest Distributable Amount for such Class of Certificates for the immediately
preceding Distribution Date and (2) the outstanding Unpaid Interest Shortfall Amount, if any, for such Class of Certificates for such preceding Distribution Date exceeds (b) the aggregate amount distributed on such Class of Certificates in respect of
interest pursuant to clause (a) of this definition on such preceding Distribution Date, plus interest on the amount of interest due but not paid on such Class of Certificates on such preceding Distribution Date, to the extent permitted by law, at the
Pass‐Through Rate for such Class of Certificates for the related Accrual Period.

U.S. Person:  A citizen or resident of the United States, a corporation, partnership or other entity created or organized in or under the laws of
the United States, any state thereof or the District of Columbia, or an estate or trust that is subject to U.S. federal income tax regardless of the source of its income.

USD-LIBOR-BBA:  As defined in the Swap Agreement in the Annex to the 2000 ISDA Definitions.

Value:  With respect to any Mortgaged Property, the lesser of (i) the Origination Value thereof and (ii) the
purchase price paid for the related Mortgaged Property by the Mortgagor with the proceeds of the Mortgage Loan; provided, however, in the case of a Refinanced Mortgage Loan, such value of the Mortgaged
Property is the Origination Value thereof.

Voting Rights:  The portion of the voting rights of all of the Certificates which is allocated to any
Certificate.  At all times the Class A Certificates, the Mezzanine Certificates, the and the Class C Certificates shall have 98% of the Voting Rights (allocated among the Holders of the Class A Certificates, the Mezzanine Certificates and the Class C
Certificates in proportion to the then outstanding Certificate Principal Balances of their respective Certificates), the Class P Certificates shall have 1% of the Voting Rights and the Class R Certificates shall have 1% of the Voting Rights.  The Voting Rights
allocated to any Class of Certificates (other than the Class P Certificates and the Class R Certificates) shall be allocated among all Holders of each such Class in proportion to the outstanding Certificate Principal Balance of such Certificates and the Voting Rights
allocated to the Class P Certificates and the Class R Certificates shall be allocated among all Holders of each such Class in proportion to such Holders’ respective Percentage Interest; provided, however, that when none of the Regular Certificates
are outstanding, 100% of the Voting Rights shall be allocated among Holders of the Class R Certificates in accordance with such Holders’ respective Percentage Interests in the Certificates of such Class.  The Class R‐CX Certificates and the Class
R‐PX Certificates shall not have Voting Rights.

Section 1.02          Accounting.

Unless otherwise specified herein, for the purpose of any definition or calculation, whenever amounts are required to be netted, subtracted or added or any distributions are taken into
account, such definition or calculation and any related definitions or calculations shall be determined without duplication of such functions.

Section 1.03          Allocation of Certain Interest Shortfalls.

For purposes of calculating the amount of the Monthly Interest Distributable Amount for the Class A Certificates, the Mezzanine Certificates and the Interest Distribution Amount for the Class
L3-C Regular Interest for any Distribution Date, the aggregate amount of any Net Prepayment Interest Shortfalls and any Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date shall be allocated first to the Class L3-C
Regular Interest to the extent of one month’s interest at the then applicable Certificate Interest Rate on the Notional Amount of such Regular Interest, and then among the Class A Certificates and the Mezzanine Certificates on a pro rata basis based on,
and to the extent of, interest for the related Accrual Period at the then applicable respective Certificate Interest Rate on the respective Certificate Principal Balance of each such Certificate.

For purposes of calculating the amount of the Monthly Interest Distributable Amount for the Class C Certificates for any Distribution Date, the aggregate amount of any Net Prepayment Interest
Shortfalls and any Relief Act Interest Shortfalls allocated to the Class C Interest  pursuant to the paragraph above shall be allocated among the Class C Certificates on a pro rata basis based on one month’s interest.

For purposes of calculating the amount of Interest Distribution Amounts for the
REMIC II Regular Interests for any Distribution Date, the aggregate amount of any Net Prepayment Interest Shortfalls and Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date shall be allocated: 

(a)        50% of any Net Prepayment Interest and Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for any
Distribution Date shall be allocated to the Class L2-XX and L2-ZZ Regular Interests up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively, and thereafter among the Class L2-XX, L2-1-A1, L2-2-A1, L2-2-A2, L2-2-A3,
L2-2-A4, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8, L2-M9, L2-M10, L2-M11, and L2-ZZ Regular Interests, pro rata based on, and to the extent of, one month’s interest at the then applicable respective Certificate Interest Rate on the
respective Class Principal Balance of each such Regular Interest; and

(b)        50% of any Net Prepayment Interest and Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date shall be
allocated to the Class L2-1-GP, L2-2-GP, L2-1-SB, L2-2-SB, and L2-YY, pro rata based on, and to the extent of, one month’s interest at the then applicable respective Certificate Interest Rate on the respective Uncertificated Principal Balance of each
such Regular Interest.  For purposes of calculating the Interest Distribution Amounts for the REMIC I Regular Interests for any Distribution Date, the aggregate amount of any Net Prepayment Interest Shortfalls and Relief Act Interest Shortfalls incurred in
respect of the Group I Mortgage Loans for any Distribution Date shall be allocated to REMIC I Regular Interests L1-Y-X and the aggregate amount of any Net Prepayment Interest Shortfalls and Relief Act Interest Shortfalls incurred in respect of the Group II Mortgage
Loans for any Distribution Date shall be allocated to REMIC I Regular Interest L1-2-X.

Section 1.04          Rights of the NIMS Insurer.

(a)        Each of the rights of the NIMS Insurer set forth in this Agreement shall exist so long as the Insured NIM Notes remain
outstanding; provided, however, the NIMS Insurer shall not have any rights hereunder (except as provided in Section 9.01) so long as any NIMS Insurer Default is continuing.

(b)        Notwithstanding anything to the contrary anywhere in this Agreement, all rights and benefits of the NIMS Insurer
hereunder shall permanently terminate upon such time as the Insured NIM Notes shall no longer be outstanding.

 

ARTICLE II

Creation of the Trust; Conveyance of the Mortgage Pool Assets, REMIC I Regular Interests, REMIC II Regular Interests and REMIC III Regular Interests; REMIC Election and
Designations; Original Issuance of Certificates

Section 2.01          Creation of the Trust

.  The Trust was created pursuant to the Original Trust Agreement and is hereby continued. As set forth in the Original Trust Agreement, the Trust shall be known as “Washington
Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust”. The purpose of the Trust is, and the Trust shall have the power and authority, to engage in the following activities, all as provided by and subject to the terms of this Agreement:

(i)         to acquire, hold, lease, manage, administer, control, invest, reinvest, operate and/or transfer
the Mortgage Pool Assets, the REMIC I Regular Interests, the REMIC II Regular Interests and the REMIC III Regular Interests; 

(ii)        to issue the REMIC I Regular Interests, the REMIC II Regular Interests, the REMIC III Regular
Interests, the Class L6-SW Regular Interest, the Class R-1, Class R-2, Class R-3, Class R-4, Class R-5, and Class R-6 Residual Interests and the Certificates;

(iii)       to make distributions to the REMIC I Regular Interests, the REMIC II Regular Interests, the REMIC III
Regular Interests, the Class L6-SW Regular Interest and the Certificates; and

(iv)       to engage in such other activities, including entering into agreements, as are described in or required by
the terms of this Agreement or as are necessary, suitable or convenient to accomplish the foregoing or incidental thereto.

LaSalle Bank National Association is hereby appointed as the trustee of the Trust, to have all the rights, duties and obligations of the Trustee
with respect to the Trust expressly set forth hereunder, and LaSalle Bank National Association hereby accepts such appointment and the trust created hereby.  Christiana Bank & Trust Company is hereby appointed as the Delaware trustee of the Trust, to have
all the rights, duties and obligations of the Delaware Trustee with respect to the Trust hereunder and Christiana Bank & Trust Company hereby accepts such appointment and the trust created hereby.  It is the intention of the Company, the Servicer, the
Trustee and the Delaware Trustee that the Trust constitute a statutory trust under the Statutory Trust Statute, that this Agreement constitute the governing instrument of the Trust, and that this Agreement amend and restate the Original Trust Agreement.  The
parties hereto acknowledge and agree that, prior to the execution and delivery hereof, the Delaware Trustee has filed the Certificate of Trust. The parties hereto acknowledge that the Trust includes two separate pools of mortgage loans referred to herein as
“Loan Groups” constituting separate subtrusts for ERISA purposes, and that the assets of each Loan Group are available to make payments to the holders of Certificates as provided in the definitions of “REMIC I Distribution Amount,”
“REMIC II Distribution Amount,” “REMIC III Distribution Amount,” “REMIC IV Distribution Amount,” “REMIC V Distribution Amount” and “REMIC VI Distribution Amount,” and Article IV.

The assets of the Trust shall remain in the custody of the Trustee or the Custodian, on behalf of the Trust, and shall be owned by the Trust.  Moneys to the credit of the Trust shall be
held by the Trustee and invested as provided herein.  All assets received and held by the Trust will not be subject to any right, charge, security interest, lien or claim of any kind in favor of either of the institution acting as Trustee or the institution
acting as Delaware Trustee in its own right, or any Person claiming through either.  Neither the Trustee nor the Delaware Trustee shall have the power or authority to transfer, assign, hypothecate, pledge or otherwise dispose of any of the assets of the Trust to
any Person, except as permitted herein.  No creditor of a beneficiary of the Trust, of the Trustee, of the Delaware Trustee, of the Servicer or of the Company shall have any right to obtain possession of, or otherwise exercise legal or equitable remedies with
respect to, the property of the Trust, except in accordance with the terms of this Agreement.

Section 2.02          Restrictions on Activities of the Trust

. Notwithstanding any other provision of this Agreement and any provision of law that otherwise so empowers the Trust, so long as any Certificates are outstanding, the Trust shall not, and
none of the Trustee, the Delaware Trustee, the Company or the Servicer shall knowingly cause the Trust to, do any of the following:

(i)         engage in any business or activity other than those set forth in Section 2.01;

(ii)        incur or assume any indebtedness except for such indebtedness that may be incurred by the Trust in
connection with the execution or performance of this Agreement or any other agreement contemplated hereby;

(iii)       guarantee or otherwise assume liability for the debts of any other party;

(iv)       do any act in contravention of this Agreement or any other agreement contemplated hereby to which the Trust
is a party;

(v)        do any act which would make it impossible to carry on the ordinary business of the Trust;

(vi)       confess a judgment against the Trust;

(vii)      possess or assign the assets of the Trust for other than a Trust purpose;

(viii)      cause the Trust to lend any funds to any entity, except as contemplated by this Agreement; or

(ix)       change the purposes and powers of the Trust from those set forth in this Agreement.

Section 2.03          Separateness Requirements

. Notwithstanding any other provision of this Agreement and any provision of law that otherwise so empowers the Trust, so long as any Certificates are outstanding, the Trust shall perform the
following:

(i)         except as expressly permitted by this Agreement or the Custodial Agreement, maintain its books,
records, bank accounts and files separate from those of any other Person;

(ii)        except as expressly permitted by this Agreement, maintain its assets in its own separate name and in
such a manner that it is not costly or difficult to segregate, identify, or ascertain such assets;

(iii)       consider the interests of the Trust's creditors in connection with its actions;

(iv)       hold itself out to creditors and the public as a legal entity separate and distinct from any other Person
and correct any known misunderstanding regarding its separate identity and refrain from engaging in any activity that compromises the separate legal identity of the Trust;

(v)        prepare and maintain separate records, accounts and financial statements in accordance with generally
accepted accounting principles, consistently applied, and susceptible to audit.  To the extent it is included in consolidated financial statements or consolidated tax returns, such financial statements and tax returns will reflect the separateness of the
respective entities and indicate that the assets of the Trust will not be available to satisfy the debts of any other Person;

(vi)       allocate and charge fairly and reasonably any overhead shared with any other Person;

(vii)      transact all business with affiliates on an arm's-length basis and pursuant to written, enforceable
agreements;

(viii)      conduct business solely in the name of the Trust.  In that regard all written and oral communications of
the Trust, including, without limitation, letters, invoices, purchase orders and contracts, shall be made solely in the name of the Trust;

(ix)       maintain a separate office through which its business shall be conducted, provided that such office
may be an office of the Trustee, which office shall not be shared with the Company or any affiliates of the Company;

(x)        in the event that services have been or are in the future performed or paid by any Person on behalf of
the Trust (other than the Trustee, the Delaware Trustee, the Servicer or the Tax Matters Person as permitted herein), reimburse such Person, as applicable, for the commercially reasonable value of such services or expenses provided or incurred by such Person. 
Accordingly, (i) the Trust shall reimburse such Person, as applicable, for the commercially reasonable value of such services or expenses provided or incurred by such Person; (ii) to the extent invoices for such services are not allocated and separately billed to the
Trust, the amount thereof that was or is to be allocated and separately billed to the Trust was or will be reasonably related to the services provided to the Trust; and (iii) any other allocation of direct, indirect or overhead expenses for items shared between the
Trust and any other Person, was or will be, to the extent practicable, allocated on the basis of actual use or value of services rendered or otherwise on a basis reasonably related to actual use or the value of services rendered;

(xi)       except as expressly permitted by this Agreement, not commingle its assets or funds with those of any other
Person;

(xii)      except as expressly permitted by this Agreement, not assume, guarantee, or pay the debts or obligations of any
other Person;

(xiii)      except as expressly permitted by this Agreement, not pledge its assets for the benefit of any other
Person;

(xiv)     not hold out its credit or assets as being available to satisfy the obligations of others;

(xv)      pay its liabilities only out of its funds;

(xvi)     pay the salaries of its own employees, if any; and

(xvii)     cause the agents and other representatives of the Trust, if any, to act at all times with respect to the Trust
consistently and in furtherance of the foregoing.

None of the Trustee, the Delaware Trustee, the Company or the Servicer shall take any action that is inconsistent with the purposes of the Trust or Section 2.02 or Section 2.03.  Neither
the Company nor the Servicer shall direct the Trustee or the Delaware Trustee to take any action that is inconsistent with the purposes of the Trust or Section 2.02 or Section 2.03.

Section 2.04          Conveyance of Mortgage Pool Assets; Security Interest

.  The Company does hereby irrevocably sell, transfer, assign, set over and otherwise convey to the Trust, without recourse, all the Company’s right, title and interest in
and to the Mortgage Pool Assets.  The Trust, as payment of the purchase price of the Mortgage Pool Assets, shall, on the Closing Date, issue the REMIC I Regular Interests and the Class R-1 Residual Interest to the Company in Authorized Denominations, together
with certain rights to receive payments made outside any REMIC.  The REMIC I Regular Interests and the Class R-1 Residual Interest shall together be a separate series of beneficial interests in the assets of the Trust consisting of the Mortgage Pool Assets
included in the definition of REMIC I pursuant to Section 3806(b)(2) of the Statutory Trust Statute.

It is the express intent of the parties hereto that the conveyance of the Mortgage Pool Assets to the Trust by the Company as provided in this Section 2.04 be, and be construed as, an absolute
sale of the Mortgage Pool Assets. It is, further, not the intention of the parties that such conveyance be deemed the grant of a security interest in the Mortgage Pool Assets by the Company to the Trust to secure a debt or other obligation of the Company. However, in
the event that, notwithstanding the intent of the parties, the Mortgage Pool Assets are held to be the property of the Company, or if for any other reason this Agreement is held or deemed to create a security interest in the Mortgage Pool Assets, then

(a)        this Agreement shall constitute a security agreement;

(b)        the conveyance provided for in this Section 2.04 shall be deemed to be a grant by the Company to the Trust of, and the Company hereby grants to
the Trust, to secure all of the Company’s obligations hereunder, a security interest in all of the Company’s right, title, and interest, whether now owned or hereafter acquired, in and to:

(I)        The Mortgage Pool Assets;

(II)       All accounts, chattel paper, deposit accounts, documents, general intangibles, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas, and other minerals, consisting of, arising from, or relating to, any of the foregoing; and

(III)      All proceeds of the foregoing.

The Company shall file such financing statements, and the Company, the Servicer and the Trustee acting on behalf of the Trust at the direction of the Company shall, to the extent consistent
with this Agreement, take such other actions as may be necessary to ensure that, if this Agreement were found to create a security interest in the Mortgage Pool Assets, such security interest would be a perfected security interest of first priority under applicable
law and will be maintained as such throughout the term of the Agreement. In connection herewith, the Trust shall have all of the rights and remedies of a secured party under the Uniform Commercial Code as in force in the relevant jurisdiction.

Section 2.05          Delivery of Mortgage Files

.  On the Closing Date, the Company shall deliver to and deposit with, or cause to be delivered to and deposited with, the Trustee the Mortgage Files, which shall at all times be
identified in the records of the Trustee as being held by or on behalf of the Trust.

The Trustee is authorized, with the Servicer’s consent, to appoint on behalf of the Trust any bank or trust company approved by each of the Company and the Servicer as Custodian of the
documents or instruments referred to in this Section 2.05, in Section 2.12 or in Section 2.15, and to enter into a Custodial Agreement for such purpose; provided, however, that the Trustee shall be and remain liable for the acts and omissions of any such
Custodian to the extent (and only to the extent) that it would have been liable for such acts and omissions hereunder had such acts and omissions been its own acts and omissions.  Any documents delivered by the Company or the Servicer to the Custodian, if any,
shall be deemed to have been delivered to the Trustee for all purposes hereunder; and any documents held by the Custodian, if any, shall be deemed to be held by the Trustee for all purposes hereunder. There shall be a written Custodial Agreement between the Trustee
and each Custodian. Each Custodial Agreement shall contain an acknowledgment by the Custodian that all Mortgage Pool Assets, Mortgage Files, and other documents and property held by it at any time are held by it for the benefit of the Trust.  Each Custodial
Agreement shall, if such reports are required to be filed with the Commission as an exhibit to a Report on Form 10-K, require the Custodian, (i) if determined by the Servicer to be a party participating in the servicing function within the meaning of Item 1122 of
Regulation AB, to deliver to the Servicer the report on assessment of compliance with applicable servicing criteria and the accounting firm’s attestation report described in Section 3.20(c) and (ii) if determined by the Servicer to meet the criteria in Item
1108(a)(2)(i) through (iii) of Regulation AB, to deliver to the Servicer the statement of compliance described in Section 3.20(e).

On or promptly after the Closing Date, the Servicer shall cause the MERS® System to indicate that each MERS Loan, if any, has been assigned to the Trustee, without recourse, or to the
Trust, without recourse, by including in the MERS® System computer files (a) the code necessary to identify the Trustee and (b) the code necessary to identify the series of the Certificates issued in connection with such Mortgage Loans; provided, however,
that in the event the Company acquired such Mortgage Loans from an affiliate of the Company, then the Servicer need not cause the MERS® System to indicate such assignment.  The Servicer shall not alter the codes referenced in this paragraph with respect to
any MERS Loan during the term of this Agreement except in connection with an assignment of such MERS Loan or de-registration thereof from the MERS® System in accordance with the terms of this Agreement.

Section 2.06          REMIC Election for REMIC I

.  The Trustee shall, on behalf of REMIC I, elect to treat REMIC I as a REMIC within the meaning of Section 860D of the Code and, if necessary, under applicable state laws. Such
election shall be included in the Form 1066 and any appropriate state return to be filed on behalf of REMIC I for its first taxable year.

The Closing Date is hereby designated as the “startup day” of REMIC I within the meaning of Section 860G(a)(9) of the Code.

The regular interests (as set forth in the table contained in the Preliminary Statement hereto) relating to REMIC I are hereby designated as “regular interests” in REMIC I for
purposes of Section 860G(a)(1) of the Code.  The Class R-1 Residual Interest is hereby designated as the sole class of “residual interest” in REMIC I for purposes of Section 860G(a)(2) of the Code.

The parties intend that the affairs of REMIC I shall constitute, and that the affairs of REMIC I shall be conducted so as to qualify REMIC I as a REMIC.  In furtherance of such intention,
the Trustee shall, on behalf of REMIC I: (a) prepare and file, or cause to be prepared and filed, a federal tax return using a calendar year as the taxable year and using an accrual method of accounting for REMIC I when and as required by the REMIC Provisions and
other applicable federal income tax laws; (b) make an election, on behalf of the trust, for REMIC I to be treated as a REMIC on the federal tax return of  REMIC I for its first taxable year, in accordance with the REMIC Provisions; (c) prepare and forward, or
cause to be prepared and forwarded, to the Holders of the REMIC I Regular Interests and the Class R-1 Residual Interest, all information reports as and when required to be provided to them in accordance with the REMIC Provisions, and make available the information
necessary for the application of Section 860E(e) of the Code; (d) conduct the affairs of REMIC I at all times that any REMIC I Regular Interests are outstanding so as to maintain the status of REMIC I as a REMIC under the REMIC Provisions; (e) not knowingly or
intentionally take any action or omit to take any action that would cause the termination of the REMIC status of REMIC I; and (f) pay the amount of any federal prohibited transaction penalty taxes imposed on REMIC I when and as the same shall be due and payable (but
such obligation shall not prevent the Trustee from contesting any such tax in appropriate proceedings and shall not prevent the Trustee from withholding payment of such tax, if permitted by law, pending the outcome of such proceedings).

The Company and the Servicer shall promptly provide the Trustee with such information in the possession of the Company or the Servicer, respectively, as the Trustee may from time to time
request for the purpose of enabling the Trustee to prepare or cause the preparation of tax returns.  The Trustee shall sign tax returns on behalf of the REMICs.

In the event that a Mortgage Loan is discovered to have a defect which, had such defect been discovered before the startup day, would have prevented such Mortgage Loan from being a
“qualified mortgage” within the meaning of Section 860G(a)(3) of the Code, and the Seller does not repurchase such Mortgage Loan within 90 days of such date pursuant to Section 3.3 of the Mortgage Loan Purchase Agreement, the Servicer, on behalf of the
Trust, shall within 90 days of the date such defect is discovered sell such Mortgage Loan at such price as the Servicer, in its sole discretion, determines to be the greatest price that will result in the purchase thereof within 90 days of such date, unless the
Servicer delivers to the Trustee an Opinion of Counsel to the effect that continuing to hold such Mortgage Loan will not adversely affect the status of the electing portion of REMIC I as a REMIC for federal income tax purposes.

In the event that the Trustee has paid any federal prohibited transaction penalty taxes imposed on REMIC I pursuant to clause (f) of the third preceding paragraph, the Trustee on behalf of the
Trust shall (unless the Trustee’s failure to exercise reasonable care was the primary cause of the imposition of such taxes) reimburse the Trustee or its agent, upon the written request of the Trustee, for such payment from amounts on deposit in the
Distribution Account in reduction of the REMIC I Available Distribution Amount for the applicable Distribution Date.  In the event that any federal prohibited transaction penalty taxes are imposed on REMIC I and not paid by the Trustee pursuant to clause (f) of
the third preceding paragraph, the Trustee on behalf of the Trust shall pay such taxes from amounts on deposit in the Distribution Account in reduction of the REMIC I Available Distribution Amount for the applicable Distribution Date.  The amount so reimbursed
or paid pursuant to either of the immediately preceding two sentences shall be allocated as a loss among the REMIC I Regular Interests pursuant to the definition of “Realized Losses.”

None of the Trustee, Servicer or the Tax Matters Person shall knowingly or intentionally take any action that would cause the termination of the REMIC status of REMIC I.

Section 2.07          Acceptance by Trustee

.  The Trustee acknowledges receipt (or with respect to any Mortgage Loan subject to a Custodial Agreement receipt by the Custodian thereunder) on behalf of the Trust of the documents
(or certified copies thereof as specified in Section 2.05) referred to in Section 2.05 above, but without having made the review required to be made pursuant to this Section 2.07.  The Trustee acknowledges that all Mortgage Pool Assets, Mortgage Files and
related documents and property held by it at any time are held by it as Trustee of the Trust for the benefit of the holders of the REMIC I Regular Interests and the Class R-1 Residual Interest.  The Trustee shall review each Mortgage File on or before the
Closing Date and deliver to the Company and the NIMS Insurer a certification in the form attached as Exhibit M hereto, to the effect that, except as noted, all documents required pursuant to the definition of “Mortgage File” and Section 2.05 have been
executed and received, and that such documents relate to the Mortgage Loans identified in the Mortgage Loan Schedule.    Within 240 days of the Closing Date, the Trustee shall deliver or with respect to the Mortgage Loans held by another Custodian,
cause such other Custodian to deliver to the Company, the Seller, the NIMS Insurer and the Servicer a certification substantially in the form of Exhibit M hereto with respect to each Mortgage Loan, with any applicable exceptions noted thereon.  In
performing such review, the Trustee may rely upon the purported genuineness and due execution of any such document, and on the purported genuineness of any signature thereon. The Trustee shall not be required to make any independent examination of any documents
contained in each Mortgage File beyond the review specifically required herein. The Trustee makes no representations as to: (i) the validity, legality, enforceability or genuineness of any of the Mortgage Loans identified on the Mortgage Loan Schedule, or (ii) the
collectability, insurability, effectiveness or suitability of any Mortgage Loan.

If the Trustee finds any document or documents required to be included in the Mortgage File for a Mortgage Loan pursuant to the definition of “Mortgage
File” not to have been executed and received, the Trustee shall promptly so notify the Servicer. An exception report delivered by the Custodian to the Servicer shall be deemed to constitute such notice.  Upon notice from the Trustee or the Custodian that
any document required to be included in the Mortgage File for a Mortgage Loan has not been executed and received, the Servicer shall promptly notify the Seller of such defect and take appropriate steps on behalf of the Trust to enforce the Seller’s obligation,
pursuant to Section 2.4 of the Mortgage Loan Purchase Agreement, to correct or cure such defect or repurchase or substitute for such Mortgage Loan, in accordance with and subject to the time limitations set forth in such Section 2.4; provided, however, that
the Servicer shall not require or permit the Seller to repurchase a Mortgage Loan pursuant to such Section 2.4 of the Mortgage Loan Purchase Agreement more than two years after the Closing Date unless (a) such defect would cause the Mortgage Loan to be other than a
“qualified mortgage” (as defined in the Code), (b) such Mortgage Loan is in default, or default is in the judgment of the Servicer reasonably imminent, or (c) the Servicer, at the expense of the Seller, delivers to the Trustee an Opinion of Counsel
addressed to the Trust and the Trustee to the effect that the repurchase of such Mortgage Loan will not give rise to a tax on a prohibited transaction, as defined in Section 860F(a) of the Code; provided, further, that in the event that such defect consists
solely of the failure of the Seller to deliver any Recording Document with respect to such Mortgage Loan, due to a delay on the part of the recording office, then the Servicer shall instead notify the Seller of such defect and take appropriate steps on behalf of the
Trust to enforce the Seller’s obligation, pursuant to Section 2.3 of the Mortgage Loan Purchase Agreement, to comply with the procedure described in such Section 2.3.

In connection with the enforcement of the Seller’s repurchase or substitution obligation pursuant to Section 2.4 of the Mortgage Loan Purchase Agreement, the Servicer and the Trustee
shall comply with the additional provisions set forth in Section 2.10 hereof.

Section 2.08          Representation and Warranty of the Company Concerning the Mortgage Loans

.  The Company hereby represents and warrants to the Trust that, immediately upon the transfer and assignment contemplated by Section 2.04, the Trust shall have good title to, and will
be the sole legal owner of, each Mortgage Loan, free and clear of any encumbrance or lien, other than any lien arising under this Agreement.

The representation and warranty set forth in this Section 2.08 shall survive delivery of the respective Mortgage Files to the Trustee or the Custodian, as the case
may be, and shall continue throughout the term of this Agreement. Upon discovery by any of the Company, the Servicer or the Trustee of a breach of the foregoing representation and warranty which materially and adversely affects the value of the related Mortgage Loans
or the interests of the Trust in the related Mortgage Loans, the party discovering such breach shall give prompt written notice to the others. Within 90 days of its discovery or its receipt of notice of breach, the Company shall repurchase or substitute for the
affected Mortgage Loan or Mortgage Loans or any property acquired in respect thereof by the Trust, unless it has cured such breach in all material respects. Any such substitution shall be made within the three-month period commencing on the Closing Date (or within
the two-year period commencing on the Closing Date if the related Mortgage Loan is a “defective obligation” within the meaning of Section 860G(a)(4)(B)(ii) of the Code and Treasury Regulation Section 1.860G-2(f)). Any such repurchase shall be made at the
Purchase Price; provided, however, that no Mortgage Loan shall be repurchased pursuant to this Section 2.08 unless (a) the Mortgage Loan to be repurchased is in default, or default is in the judgment of the Servicer reasonably imminent, or (b)
the Servicer, at the expense of the Company, delivers to the Trustee an Opinion of Counsel addressed to the Trust and the Trustee to the effect that the repurchase of such Mortgage Loan will not give rise to a tax on a prohibited transaction, as defined in Section
860F(a) of the Code.  If such breach would cause the Mortgage Loan to be other than a “qualified mortgage” (as defined in the Code), then notwithstanding the previous sentence, the repurchase or substitution must occur within the sooner of (i) 90
days from the date the defect was discovered or (ii) in the case of substitution, two years from the Closing Date.

Any number of Qualified Substitute Mortgage Loans may be substituted for any number of Deleted Mortgage Loans and a Qualified Substitute Mortgage Loan may be substituted for a defective
Mortgage Loan that is itself a Qualified Substitute Mortgage Loan, in each case subject to limitations in the next sentence.  A Qualified Substitute Mortgage Loan substituted for a Deleted Mortgage Loan pursuant to the terms of this Agreement or the Mortgage
Loan Purchase Agreement must, on the date of such substitution, (i) have an outstanding principal balance (or in the case of a substitution of more than one mortgage loan for a Deleted Mortgage Loan, an aggregate principal balance), after application of all
scheduled payments of principal and interest due during or prior to the month of substitution, not in excess of, and not more than 5.00% less than, the outstanding principal balance of the Deleted Mortgage Loan as of the Due Date in the calendar month during which
the substitution occurs, (ii) have a Mortgage Rate not less than (and not more than one percentage point in excess of) the Mortgage Rate of the Deleted Mortgage Loan, (iii) if the Qualified Substitute Mortgage Loan is an Adjustable Rate Mortgage Loan, have
a Maximum Mortgage Rate not greater than the Maximum Mortgage Rate on the Deleted Mortgage Loan and have a Minimum Mortgage Rate not less than the Minimum Mortgage Rate of the Deleted Mortgage Loan, (iv) if the Qualified Substitute Mortgage Loan is an Adjustable
Rate Mortgage Loan, have a Gross Margin equal to or greater than the Gross Margin of the Deleted Mortgage Loan, (v) if the Qualified Substitute Mortgage Loan is an Adjustable Rate Mortgage Loan, have a next Adjustment Date not more than two months later than the next
Adjustment Date on the Deleted Mortgage Loan, (vi) have a remaining term to maturity not greater than (and not more than one year less than) that of the Deleted Mortgage Loan, (vii) be current (with no contractual delinquencies outstanding) as of the date of
substitution, (viii) have a Loan‐to‐Value Ratio as of the date of substitution equal to or lower than the Loan‐to‐Value Ratio of the Deleted Mortgage Loan as of such date, (ix) have a risk grading determined by the Seller at least equal
to the risk grading assigned on the Deleted Mortgage Loan, (x) have been underwritten or reunderwritten by the Seller in accordance with the same or, as determined by the Seller, more favorable, underwriting guidelines as the Deleted Mortgage Loan, (xi) with respect
to Qualified Substitute Mortgage Loans substituted for Deleted Mortgage Loans that are Group I Mortgage Loans, have had an original Principal Balance that conformed to Fannie Mae and Freddie Mac loan limits as of the date of its origination, (xii) be secured by
the same property type as the Deleted Mortgage Loan, (xiii) have a lien priority equal to or superior to that of the Deleted Mortgage Loan, (xiv) [reserved], and (xv) conform to each representation and warranty set forth in Section 3.1 of the
Mortgage Loan Purchase Agreement applicable to the Deleted Mortgage Loan.  In the event that one or more mortgage loans are substituted for one or more Deleted Mortgage Loans, the amounts described in clause (i) hereof shall be determined on the basis of
aggregate principal balances (applied separately for the Group I Mortgage Loans and Group II Mortgage Loans), the Mortgage Rates described in clauses (ii) through (v) hereof shall be satisfied for each such mortgage loan, the risk gradings described in
clause (ix) hereof shall be satisfied as to each such mortgage loan, the terms described in clause (vi) hereof shall be determined on the basis of weighted average remaining term to maturity (provided that no such mortgage loan may have a remaining term
to maturity longer than the Deleted Mortgage Loan), the Loan‐to‐Value Ratios described in clause (viii) hereof shall be satisfied as to each such mortgage loan and, except to the extent otherwise provided in this sentence, the representations and
warranties described in clause (xv) hereof must be satisfied as to each Qualified Substitute Mortgage Loan or in the aggregate, as the case may be.

In connection with the substitution of one or more Qualified Substitute Mortgage Loans for one or more Deleted Mortgage Loans on any date, the Company shall pay to the Trust the Substitution
Adjustment for such Deleted Mortgage Loans, and such payment by the Company shall be treated in the same manner as proceeds of the repurchase by the Company of a Mortgage Loan pursuant to this Section 2.08.   For any month in which the Seller substitutes
one or more Qualified Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the Servicer will determine the amounts (the “Substitution Adjustments”), if any, by which the aggregate Purchase Price of all such Deleted Mortgage Loans in
Loan Group I or Loan Group II, respectively, exceeds the aggregate of the Stated Principal Balance of the Qualified Substitute Mortgage Loans that will become part of Loan Group I or Loan Group II, respectively, as of the date of substitution,
together with one month’s interest on such Stated Principal Balance at the applicable Net Mortgage Rate, plus all outstanding Advances and Servicing Advances with respect to such Deleted Mortgage Loan.

With respect to each Qualified Substitute Mortgage Loan, the Company shall (a) deliver to and deposit with, or cause to be delivered to and deposited with, the Trustee or the Custodian on
behalf of the Trust the Mortgage File for such Qualified Substitute Mortgage Loan and (b) cause the Seller to enter into an agreement with the Trust and the Servicer pursuant to which, with respect to such Qualified Substitute Mortgage Loan, the Seller will (i) make,
as of the date of substitution, each of the representations and warranties that the Seller made pursuant to Section 3.1 of the Mortgage Loan Purchase Agreement with respect to the original Mortgage Loan (except that references to “Closing Date” or
“Cut-off Date” in such Section 3.1 shall be changed to the applicable date of substitution), (ii) agree to deliver any missing Recording Documents with respect to such Qualified Substitute Mortgage Loan, and to repurchase or substitute for such Qualified
Substitute Mortgage Loan in the event of the Seller’s failure to deliver any document required to be included in such Mortgage File or in the event of the Seller’s material breach of any of such representations and warranties, upon the same terms as the
Seller’s corresponding obligations with respect to the original Mortgage Loan pursuant to Sections 2.3, 2.4 and 3.3 of the Mortgage Loan Purchase Agreement, and (iii) convey such Qualified Substitute Mortgage Loan to the Trust.

The Trustee shall acknowledge or with respect to the Mortgage Loans held by another Custodian cause such other Custodian to acknowledge receipt for such Qualified Substitute Mortgage Loan and,
within ten Business Days thereafter, review such documents as specified in Section 2.02 and deliver to the Depositor, the Servicer and the NIMS Insurer, with respect to such Qualified Substitute Mortgage Loan or Loans, a certification substantially in the form
attached hereto as Exhibit M, with any applicable exceptions noted thereon.  Within 240 days of the date of substitution, the Trustee shall deliver or with respect to the Mortgage Loans held by another Custodian, cause such other Custodian to deliver to the
Company, the Seller, the NIMS Insurer and the Servicer a certification substantially in the form of Exhibit M hereto with respect to such Qualified Substitute Mortgage Loan, with any applicable exceptions noted thereon.  Monthly Payments due with respect to
Qualified Substitute Mortgage Loans in the month of substitution are not part of REMIC I and will be retained by the Seller. 

The Company shall pay all costs and expenses incurred in connection with any repurchase or substitution by the Company made pursuant to this Section 2.08.

For the month of substitution, distributions to Certificateholders will reflect the Monthly Payment due on such Deleted Mortgage Loan on or before the Due Date in
the month of substitution, and the Seller shall thereafter be entitled to retain all amounts subsequently received in respect of such Deleted Mortgage Loan.  The Trustee shall give or cause to be given written notice to the NIMS Insurer and the
Certificateholders that such substitution has taken place, and the Servicer shall amend or cause to be amended the Mortgage Loan Schedule and, if applicable, the Prepayment Charge Schedule to reflect the removal of such Deleted Mortgage Loan from the terms of this
Agreement and the substitution of the Qualified Substitute Mortgage Loan and shall deliver a copy of such amended Mortgage Loan Schedule and, if applicable, the Prepayment Charge Schedule to the NIMS Insurer and the Trustee.  Upon such substitution, such
Qualified Substitute Mortgage Loan or Loans shall constitute part of the Mortgage Pool and shall be subject in all respects to the terms of this Agreement and the Mortgage Loan Purchase Agreement, including all applicable representations and warranties thereof
included in the Mortgage Loan Purchase Agreement as of the date of substitution.

On the date of such substitution, the Company shall cause the Seller to deliver or cause to be delivered to the Servicer for deposit in the Collection Account an amount equal to the sum of
Substitution Adjustments, if any (which for federal income tax purposes will be treated as payment for the repurchase of that portion of the Deleted Mortgage Loans), and the Trustee, upon receipt of the related Qualified Substitute Mortgage Loan or Loans (or
acknowledgement of such receipt by another Custodian) and certification by the Servicer of such deposit, shall release or, if such Mortgage File is held by another Custodian, such Custodian shall release to the Seller the related Mortgage File or Files and the
Trustee shall execute and deliver or, if such Mortgage File is held by another Custodian, such Custodian shall execute and deliver such instruments of transfer or assignment, without recourse, as the Seller shall deliver to it or such Custodian, as applicable, and as
shall be necessary to vest therein any Deleted Mortgage Loan released pursuant hereto.  Substitution shall be permitted only within two years of the Closing Date and may not be made unless an Opinion of Counsel is provided to the Trustee to the effect that
substitution will not disqualify the Trust as a REMIC or result in a prohibited transaction tax under the Code.

In connection with any repurchase or substitution by the Company made pursuant to this Section 2.08, the Servicer and the Trustee (to the extent of any obligations on its part) shall comply
with the additional provisions set forth in Section 2.10 hereof.

Section 2.09          Representations and Warranties of the Seller Concerning the Mortgage Loans

.  The Company hereby assigns to the Trust all of its rights under the Mortgage Loan Purchase Agreement, to the extent that the Mortgage Loan Purchase Agreement relates to the Mortgage
Loans.

Upon discovery by any of the Company, the Servicer or the Trustee (in the case of the Trustee, having actual knowledge thereof) of a breach of any of the representations and warranties in
respect of the Mortgage Loan set forth in Section 3.1 of the Mortgage Loan Purchase Agreement that materially and adversely affects the value of the related Mortgage Loans or the interests of the Trust in the related Mortgage Loans, the party discovering such breach
shall give prompt written notice to the others and the NIMS Insurer. Any breach of the representation set forth in the last sentence of clause (xxxix), clause (xlvi), the first sentence of clause (xlvii), clause (lxi) and clause (lxiv) of such Section 3.1 thereof
shall be deemed to materially and adversely affect the value of the related Mortgage Loans or the interests of the Trust in the related Mortgage Loans.  The Servicer shall promptly notify the Seller of such breach and take appropriate steps on behalf of the
Trust to enforce the Seller’s obligation, pursuant to Section 3.3 of the Mortgage Loan Purchase Agreement, to cure such breach in all material respects or repurchase or substitute for the affected Mortgage Loan or Mortgage Loans or any property acquired in
respect thereof, in accordance with and subject to the time limitations set forth in such Section 3.3; provided, however, that the Seller shall not be required or permitted to repurchase a Mortgage Loan pursuant to such Section 3.3 thereof unless (a) such
defect would cause the Mortgage Loan to be other than a “qualified mortgage” (as defined in the Code), (b) such Mortgage Loan is in default, or default is in the judgment of the Servicer reasonably imminent, or (c) the Servicer, at the expense of the
Seller, delivers to the Trustee an Opinion of Counsel addressed to the Trust and the Trustee to the effect that the purchase of such Mortgage Loan will not give rise to a tax on a prohibited transaction, as defined in Section 860F(a) of the Code.

In connection with the enforcement of the Seller’s repurchase or substitution obligation pursuant to Section 3.3 of the Mortgage Loan Purchase Agreement, the Servicer and the Trustee
shall comply with the additional provisions set forth in Section 2.10 hereof.

Section 2.10          Additional Provisions Relating to Repurchases of and Substitutions for Mortgage Loans by the Company or the Seller

.  The Servicer shall deposit or cause to be deposited in the Collection Account (i) the Purchase Price that it receives for each Mortgage Loan repurchased by the Company pursuant
to Section 2.08 hereof, (ii) the Substitution Adjustment that it receives in connection with each substitution for a Mortgage Loan by the Company pursuant to such Section 2.08, (iii) the Purchase Price (as defined in the Mortgage Loan Purchase Agreement) that it
receives for each Mortgage Loan repurchased by the Seller pursuant to Section 2.4 or 3.3 of the Mortgage Loan Purchase Agreement and (iv) the Substitution Adjustment (as defined in the Mortgage Loan Purchase Agreement) that it receives in connection with each
substitution for a Mortgage Loan by the Seller pursuant to such Section 2.4 or 3.3 thereof.

Upon receipt by the Trustee of written notification, signed by a Servicing Officer, of the deposit in the Collection Account of the Purchase Price or Substitution Adjustment, as applicable,
and (in the case of a substitution for a Mortgage Loan) upon receipt by the Trustee of such instruments of transfer or assignment, in each case without recourse, as shall be necessary to vest in the Trust title to any Qualified Substitute Mortgage Loan, the Trustee
shall (or, if applicable, shall cause the Custodian in accordance with the Custodial Agreement to) on behalf of the Trust release to the Company or the Seller, as applicable, or to such person’s designee, the Mortgage File for such Mortgage Loan and shall
execute and deliver (or, in the event that the Mortgage Files are held in the name of the Custodian, shall cause the Custodian in accordance with the Custodial Agreement to execute and deliver) on behalf of the Trust such instruments of transfer or assignment, in
each case without recourse, as shall be necessary to vest in such person or its designee or assignee title to any such Mortgage Loan. In furtherance of the foregoing, if such Mortgage Loan is a MERS Loan and as a result of the repurchase thereof or substitution
therefor such Mortgage Loan shall cease to be serviced by a servicer that is a member of MERS or if the Company or the Seller, as applicable, or such person’s assignee, shall so request, the Servicer shall cause MERS to execute and deliver an assignment of the
Mortgage in recordable form from MERS to such person or its assignee and shall cause the Mortgage Loan to be removed from registration on the MERS® System in accordance with MERS’ rules and procedures.

It is understood and agreed that the obligation of (a) the Seller, pursuant to Section 2.4 of the Mortgage Loan Purchase Agreement, to repurchase or substitute for any Mortgage Loan as to
which a defect in a constituent document exists, or (b) of the Seller or the Company, as applicable, pursuant to Section 3.3 of the Mortgage Loan Purchase Agreement or Section 2.8 hereof, to repurchase or substitute for any Mortgage Loan as to which a breach has
occurred and is continuing, shall constitute the sole remedy respecting such defect or breach available to the Trust or the Holders of the REMIC interests or the Certificates issued hereunder or the Trustee on behalf of such Holders.

Section 2.11          Acknowledgment of Transfer of Mortgage Pool Assets

.  The Trustee hereby  acknowledges and accepts on behalf of the Trust the transfer and assignment pursuant to Section 2.04 to the Trust of the Mortgage Pool Assets, but without
having made the review required to be made pursuant to Section 2.07, and declares that as of the Closing Date it holds and shall hold any documents constituting a part of the Mortgage Pool Assets, and the Mortgage Pool Assets, as Trustee in trust, upon the trust
herein set forth, for the use and benefit of all present and future Holders of the REMIC I Regular Interests and the Class R-1 Residual Interest.

Section 2.12          Conveyance of REMIC II Assets; Security Interest

.  The Company does hereby irrevocably sell, transfer, assign, set over, and otherwise convey to the Trust, without recourse, all the Company’s right, title and interest in and to
the REMIC I Regular Interests (other than the Class L1‐P Regular Interest). The Trust, as payment of the purchase price of such assets, shall issue the REMIC II Regular Interests and the Class R-2 Residual Interest to the Company on the Closing Date. Pursuant
to Section 3818 of the Statutory Trust Statute, the REMIC I Regular Interests shall not be cancelled and shall be held as treasury interests owned by the Trust. The REMIC II Regular Interests and the Class R-2 Residual Interest shall together be a separate series of
beneficial interests in the assets of the Trust consisting of the REMIC II Assets pursuant to Section 3806(b)(2) of the Statutory Trust Statute.

It is the express intent of the parties hereto that the conveyance of the REMIC I Regular Interests (other than the Class L1‐P Regular Interest) to the Trust by
the Company as provided in this Section 2.12 be, and be construed as, an absolute sale of the REMIC I Regular Interests (other than the Class L1‐P Regular Interest). It is, further, not the intention of the parties that such conveyance be deemed the grant of a
security interest in the REMIC I Regular Interests (other than the Class L1‐P Regular Interest) by the Company to the Trust to secure a debt or other obligation of the Company. However, in the event that, notwithstanding the intent of the parties, the REMIC I
Regular Interests (other than the Class L1‐P Regular Interest) are held to be the property of the Company, or if for any other reason this Agreement is held or deemed to create a security interest in the REMIC I Regular Interests (other than the Class
L1‐P Regular Interest), then

(a)        this Agreement shall constitute a security agreement;

(b)        the conveyance provided for in this Section 2.12 shall be deemed to be a grant by the Company to the Trust of, and the Company hereby grants to
the Trust, to secure all of the Company’s obligations hereunder, a security interest in all of the Company’s right, title, and interest, whether now owned or hereafter acquired, in and to:

(I)        The REMIC I Regular Interests (other than the Class L1‐P Regular Interests), including without limitation all
rights represented thereby in and to the Mortgage Pool Assets and the proceeds thereof;

(II)       All accounts, chattel paper, deposit accounts, documents, general intangibles, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas, and other minerals, consisting of, arising from, or relating to, any of the foregoing; and

(III)      All proceeds of the foregoing.

The Company shall file such financing statements, and the Company and the Trustee acting on behalf of the Trust at the direction of the Company shall, to the extent consistent with this
Agreement, take such other actions as may be necessary to ensure that, if this Agreement were found to create a security interest in the REMIC I Regular Interests (other than the Class L1‐P Regular Interest), such security interest would be a perfected security
interest of first priority under applicable law and will be maintained as such throughout the term of this Agreement. In connection herewith, the Trust shall have all of the rights and remedies of a secured party under the Uniform Commercial Code as in force in the
relevant jurisdiction.

Section 2.13          REMIC Election for REMIC II

.  The Trustee shall, on behalf of REMIC II, elect to treat REMIC II as a REMIC within the meaning of Section 860D of the Code and, if necessary, under applicable state laws. Such
election shall be included in the Form 1066 and any appropriate state return to be filed on behalf of REMIC II for its first taxable year.

The Closing Date is hereby designated as the “startup day” of REMIC II within the meaning of Section 860G(a)(9) of the Code.

The regular interests (as set forth in the table contained in the Preliminary Statement hereto) relating to REMIC II are hereby designated as “regular interests” in REMIC II for
purposes of Section 860G(a)(1) of the Code. The Class R-2 Residual Interest is hereby designated as the sole class of “residual interest” in REMIC II for purposes of Section 860G(a)(2) of the Code.

The parties intend that the affairs of REMIC II shall constitute, and that the affairs of REMIC II shall be conducted so as to qualify it as, a REMIC. In furtherance of such intention, the
Trustee shall, on behalf of REMIC II: (a) prepare and file, or cause to be prepared and filed, a federal tax return using a calendar year as the taxable year for REMIC II when and as required by the REMIC provisions and other applicable federal income tax laws; (b)
make an election, on behalf of REMIC II, to be treated as a REMIC on the federal tax return of REMIC II for its first taxable year, in accordance with the REMIC provisions; (c) prepare and forward, or cause to be prepared and forwarded, to the Certificateholders and
the Holders of the Class R-2 Residual Interest all information reports as and when required to be provided to them in accordance with the REMIC provisions; (d) conduct the affairs of REMIC II at all times that any of the Certificates are outstanding so as to maintain
the status of REMIC II as a REMIC under the REMIC provisions; (e) not knowingly or intentionally take any action or omit to take any action that would cause the termination of the REMIC status of REMIC II; and (f) pay the amount of any federal prohibited transaction
penalty taxes imposed on REMIC II when and as the same shall be due and payable (but such obligation shall not prevent the Trustee or any other appropriate person from contesting any such tax in appropriate proceedings and shall not prevent the Trustee from
withholding payment of such tax, if permitted by law, pending the outcome of such proceedings).

In the event that the Trustee has paid any federal prohibited transaction penalty taxes imposed on REMIC II pursuant to clause (f) of the immediately preceding paragraph, the Trustee on behalf
of the Trust shall (unless the Trustee’s failure to exercise reasonable care was the primary cause of the imposition of such taxes) reimburse the Trustee, upon the written request of the Trustee, for such payment from amounts on deposit in the Distribution
Account in reduction of the REMIC II Available Distribution Amount for the applicable Distribution Date.  In the event that any federal prohibited transaction penalty taxes are imposed on REMIC II and not paid by the Trustee pursuant to clause (f) of the
immediately preceding paragraph, the Trustee on behalf of the Trust shall pay such taxes from amounts on deposit in the Distribution Account in reduction of the REMIC II Available Distribution Amount for the applicable Distribution Date.  The amount so
reimbursed pursuant to either of the immediately preceding two sentences shall be allocated as a loss among the REMIC II Regular Interests pursuant to the definition of “Realized Losses.”

None of the Trustee, Servicer or the Tax Matters Person shall knowingly or intentionally take any action that would cause the termination of the REMIC status of REMIC II.

Section 2.14          Acknowledgement of Transfer of REMIC I Regular Interests

.  The Trustee hereby acknowledges and accepts on behalf of the Trust the assignment to the Trust pursuant to Section 2.12 of the REMIC I Regular Interests (other than the Class
L1‐P Regular Interest) and declares that as of the Closing Date it holds and shall hold such assets and any documents constituting a part of such assets and, as Trustee in trust, upon the trust herein set forth, for the use and benefit of all present and future
Holders of the REMIC II Regular Interests and the Class R-2 Residual Interest.

Section 2.15          Conveyance of REMIC II Regular Interests; Security Interest

.  The Company does hereby irrevocably sell, transfer, assign, set over, and otherwise convey to the Trust, without recourse, all the Company’s right, title and interest in
and to the REMIC II Regular Interests. The Trust, as payment of the purchase price of the REMIC II Regular Interests, shall issue the REMIC III Regular Interests, the Certificates (other than the Class C, Class P, Class SW, Class R, and Class R-CPS Certificates) and
the Class R-3 Residual Interest to the Company on the Closing Date.  Pursuant to Section 3818 of the Statutory Trust Statute, the REMIC I Regular Interests and the REMIC II Regular Interests shall not be cancelled and shall be held as treasury interests owned by
the Trust.  The REMIC III Regular Interests, the Certificates (other than the Class C, Class P, Class R, Class R-CX and Class R-PX Certificates), and the Class R-3 Residual Interest shall together be a separate series of beneficial interests in the assets of the
Trust consisting of the REMIC II Regular Interests pursuant to Section 3806(b)(2) of the Statutory Trust Statute.

It is the express intent of the parties hereto that the conveyance of the REMIC II Regular Interests to the Trust by the Company as provided in this Section 2.15 be,
and be construed as, an absolute sale of the REMIC II Regular Interests.  It is, further, not the intention of the parties that such conveyance be deemed the grant of a security interest in the REMIC II Regular Interests by the Company to the Trust to secure a
debt or other obligation of the Company.  However, in the event that, notwithstanding the intent of the parties, the REMIC II Regular Interests are held to be the property of the Company, or if for any other reason this Agreement is held or deemed to create a
security interest in the REMIC II Regular Interests, then

(a)        this Agreement shall constitute a security agreement;

(b)        the conveyance provided for in this Section 2.15 shall be deemed to be a grant by the Company to the Trust of, and the Company hereby grants to
the Trust, to secure all of the Company’s obligations hereunder, a security interest in all of the Company’s right, title, and interest, whether now owned or hereafter acquired, in and to:

(I)        The REMIC II Regular Interests, including without limitation all rights represented thereby in and to the Mortgage Pool
Assets and the proceeds thereof;

(II)       All accounts, chattel paper, deposit accounts, documents, general intangibles, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas, and other minerals, consisting of, arising from, or relating to, any of the foregoing; and

(III)      All proceeds of the foregoing.

The Company shall file such financing statements, and the Company and the Trustee acting on behalf of the Trust at the direction of the Company shall, to the extent consistent with this
Agreement, take such other actions as may be necessary to ensure that, if this Agreement were found to create a security interest in the REMIC II Regular Interests, such security interest would be a perfected security interest of first priority under applicable law
and will be maintained as such throughout the term of this Agreement. In connection herewith, the Trust shall have all of the rights and remedies of a secured party under the Uniform Commercial Code as in force in the relevant jurisdiction.

Section 2.16          REMIC Election for REMIC III

.  The Trustee shall, on behalf of REMIC III, elect to treat REMIC III as a REMIC within the meaning of Section 860D of the Code and, if necessary, under applicable state laws.
Such election shall be included in the Form 1066 and any appropriate state return to be filed on behalf of REMIC III for its first taxable year.

The Closing Date is hereby designated as the “startup day” of REMIC III within the meaning of Section 860G(a)(9) of the Code.

The regular interests (as set forth in the table contained in the Preliminary Statement hereto) relating to REMIC III are hereby designated as “regular interests” in REMIC III for
purposes of Section 860G(a)(1) of the Code. The Class R-3 Residual Interest is hereby designated as the sole class of “residual interest” in REMIC III for purposes of Section 860G(a)(2) of the Code.

The parties intend that the affairs of REMIC III shall constitute, and that the affairs of REMIC III shall be conducted so as to qualify it as, a REMIC. In furtherance of such intention, the
Trustee shall, on behalf of REMIC III: (a) prepare and file, or cause to be prepared and filed, a federal tax return using a calendar year as the taxable year for REMIC III when and as required by the REMIC provisions and other applicable federal income tax laws; (b)
make an election, on behalf of REMIC III, to be treated as a REMIC on the federal tax return of REMIC III for its first taxable year, in accordance with the REMIC provisions; (c) prepare and forward, or cause to be prepared and forwarded, to the Certificateholders
and the Holders of the Class R-3 Residual Interest all information reports as and when required to be provided to them in accordance with the REMIC provisions; (d) conduct the affairs of REMIC III at all times that any of the Certificates are outstanding so as to
maintain the status of REMIC II as a REMIC under the REMIC provisions; (e) not knowingly or intentionally take any action or omit to take any action that would cause the termination of the REMIC status of REMIC III; and (f) pay the amount of any federal prohibited
transaction penalty taxes imposed on REMIC III when and as the same shall be due and payable (but such obligation shall not prevent the Trustee or any other appropriate person from contesting any such tax in appropriate proceedings and shall not prevent the Trustee
from withholding payment of such tax, if permitted by law, pending the outcome of such proceedings).

In the event that the Trustee has paid any federal prohibited transaction penalty taxes imposed on REMIC III pursuant to clause (f) of the immediately preceding paragraph, the Trustee on
behalf of the Trust shall (unless the Trustee’s failure to exercise reasonable care was the primary cause of the imposition of such taxes) reimburse the Trustee, upon the written request of the Trustee, for such payment from amounts on deposit in the
Distribution Account in reduction of the REMIC III Available Distribution Amount for the applicable Distribution Date.  In the event that any federal prohibited transaction penalty taxes are imposed on REMIC III and not paid by the Trustee pursuant to clause (f)
of the immediately preceding paragraph, the Trustee on behalf of the Trust shall pay such taxes from amounts on deposit in the Distribution Account in reduction of the REMIC III Available Distribution Amount for the applicable Distribution Date.  The amount so
reimbursed pursuant to either of the immediately preceding two sentences shall be allocated as a loss among the REMIC III Regular Interests pursuant to the definition of “Realized Losses.”

None of the Trustee, Servicer or the Tax Matters Person shall knowingly or intentionally take any action that would cause the termination of the REMIC status of REMIC III.

Section 2.17           
 Acknowledgement of Transfer of REMIC II Regular Interests

.  The Trustee hereby acknowledges and accepts on behalf of the Trust the assignment to the Trust pursuant to Section 2.15 of the REMIC II Regular Interests and declares that as of the
Closing Date it holds and shall hold such assets and any documents constituting a part of such assets, as Trustee in trust, upon the trust herein set forth, for the use and benefit of all present and future Holders of the REMIC III Regular Interests, the Certificates
(other than the Class C, Class P, Class SW, Class R, Class R-CX, and Class R-PX Certificates), and the Class R-3 Residual Interest.

Section 2.18          Conveyance of Class L3-C Regular
Interest

.  The Company does hereby irrevocably sell, transfer, assign, set over, and otherwise convey to the Trust, without recourse, all the Company’s right, title and interest in and to
the Class L3-C Regular Interest.  The Trust, as payment of the purchase price of the Class L3-C Regular Interest, shall issue the Class C Certificates and the Class R-4 Residual Interest to the Company on the Closing Date.  Pursuant to Section 3818 of the
Statutory Trust Statute, the REMIC I Regular Interests, the REMIC II Regular Interests, and the Class L3-C Regular Interest shall not be cancelled and shall be held as treasury interests owned by the Trust.  The Class C Certificates and the Class R-4 Residual
Interest shall together be a separate series of beneficial interests in the assets of the Trust consisting of the Class L3-C Regular Interest pursuant to Section 3806(b)(2) of the Statutory Trust Statute.

It is the express intent of the parties hereto that the conveyance of the Class L3-C Regular Interest to the Trust by the Company as provided in this Section 2.18 be, and be construed as, an
absolute sale of the Class L3-C Regular Interest.  It is, further, not the intention of the parties that such conveyance be deemed the grant of a security interest in the Class L3-C Regular Interest by the Company to the Trust to secure a debt or other
obligation of the Company.  However, in the event that, notwithstanding the intent of the parties, the Class L3-C Regular Interest are held to be the property of the Company, or if for any other reason this Agreement is held or deemed to create a security
interest in the Class L3-C Regular Interest, then

(a)        this Agreement shall constitute a security agreement;

(b)        the conveyance provided for in this Section 2.18 shall be deemed to be a grant by the Company to the Trust of, and the Company hereby grants to
the Trust, to secure all of the Company’s obligations hereunder, a security interest in all of the Company’s right, title, and interest, whether now owned or hereafter acquired, in and to:

(I)        The Class L3-C Regular Interest, including without limitation all rights represented thereby in and to the Mortgage Pool
Assets and the proceeds thereof;

(II)       All accounts, chattel paper, deposit accounts, documents, general intangibles, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas, and other minerals, consisting of, arising from, or relating to, any of the foregoing; and

(III)      All proceeds of the foregoing.

The Company shall file such financing statements, and the Company and the Trustee acting on behalf of the Trust at the direction of the Company shall, to the extent consistent with this
Agreement, take such other actions as may be necessary to ensure that, if this Agreement were found to create a security interest in the Class L3-C Regular Interest, such security interest would be a perfected security interest of first priority under applicable law
and will be maintained as such throughout the term of this Agreement. In connection herewith, the Trust shall have all of the rights and remedies of a secured party under the Uniform Commercial Code as in force in the relevant jurisdiction.

Section 2.19          REMIC
Election for REMIC IV

.  The Trustee shall, on behalf of REMIC IV, elect to treat REMIC IV as a REMIC within the meaning of Section 860D of the Code and, if necessary, under applicable state laws. Such
election shall be included in the Form 1066 and any appropriate state return to be filed on behalf of REMIC IV for its first taxable year.

The Closing Date is hereby designated as the “startup day” of REMIC IV within the meaning of Section 860G(a)(9) of the Code.

The regular interests (as set forth in the table contained in the Preliminary Statement hereto) relating to REMIC IV are hereby designated as “regular interests” in REMIC IV for
purposes of Section 860G(a)(1) of the Code.  The Class R-4 Residual Interest is hereby designated as the sole class of “residual interest” in REMIC IV for purposes of Section 860G(a)(2) of the Code.

The parties intend that the affairs of REMIC IV shall constitute, and that the affairs of REMIC IV shall be conducted so as to qualify it as, a REMIC. In furtherance of such intention, the
Trustee shall, on behalf of REMIC IV: (a) prepare and file, or cause to be prepared and filed, a federal tax return using a calendar year as the taxable year for REMIC IV when and as required by the REMIC provisions and other applicable federal income tax laws; (b)
make an election, on behalf of REMIC IV, to be treated as a REMIC on the federal tax return of REMIC IV for its first taxable year, in accordance with the REMIC provisions; (c) prepare and forward, or cause to be prepared and forwarded, to the Certificateholders and
the Holders of the Class R-4 Residual Interest all information reports as and when required to be provided to them in accordance with the REMIC provisions; (d) conduct the affairs of REMIC IV at all times that any of the Certificates are outstanding so as to maintain
the status of REMIC IV as a REMIC under the REMIC provisions; (e) not knowingly or intentionally take any action or omit to take any action that would cause the termination of the REMIC status of REMIC IV; and (f) pay the amount of any federal prohibited transaction
penalty taxes imposed on REMIC IV when and as the same shall be due and payable (but such obligation shall not prevent the Trustee or any other appropriate person from contesting any such tax in appropriate proceedings and shall not prevent the Trustee from
withholding payment of such tax, if permitted by law, pending the outcome of such proceedings).

In the event that the Trustee has paid any federal prohibited transaction penalty taxes imposed on REMIC IV pursuant to clause (f) of the immediately preceding paragraph, the Trustee on behalf
of the Trust shall (unless the Trustee’s failure to exercise reasonable care was the primary cause of the imposition of such taxes) reimburse the Trustee, upon the written request of the Trustee, for such payment from amounts on deposit in the Distribution
Account in reduction of the REMIC IV Available Distribution Amount for the applicable Distribution Date.  In the event that any federal prohibited transaction penalty taxes are imposed on REMIC IV and not paid by the Trustee pursuant to clause (f) of the
immediately preceding paragraph, the Trustee on behalf of the Trust shall pay such taxes from amounts on deposit in the Distribution Account in reduction of the REMIC IV Available Distribution Amount for the applicable Distribution Date.  The amount so
reimbursed pursuant to either of the immediately two preceding sentences shall be allocated as a loss to the Class C Certificates, but shall not reduce the Certificate Principal Balance thereof.

None of the Trustee, Servicer or the Tax Matters Person shall knowingly or intentionally take any action that would cause the termination of the REMIC status of REMIC IV.

Section 2.20          Acknowledgement of Transfer of Class
L3-C Regular Interest

.  The Trustee hereby acknowledges and accepts on behalf of the Trust the assignment to the Trust pursuant to Section 2.18 of the Class L3-C Regular Interest and declares that as of the
Closing Date it holds and shall hold such assets and any documents constituting a part of such assets, as Trustee in trust, upon the trust herein set forth, for the use and benefit of all present and future Holders of the Class C Certificates and the Class R-4
Residual Interest.

Section 2.21          Conveyance of
Class L1-P Regular Interest. 

The Company does hereby irrevocably sell, transfer, assign, set over, and otherwise convey to the Trust, without recourse, all the Company’s right, title and interest in and to the
Class L1-P Regular Interest.  The Trust, as payment of the purchase price of the Class L1-P Regular Interest, shall issue the Class P Certificates and the Class R-5 Residual Interest to the Company on the Closing Date.  Pursuant to Section 3818 of the
Statutory Trust Statute, the REMIC I Regular Interests, the REMIC II Regular Interests, the Class L3-C Regular Interest, and the Class L1-P Regular Interest shall not be cancelled and shall be held as treasury interests owned by the Trust.  The Class P
Certificates and the Class R-5 Residual Interest shall together be a separate series of beneficial interests in the assets of the Trust consisting of the Class L1-P Regular Interest pursuant to Section 3806(b)(2) of the Statutory Trust Statute.

It is the express intent of the parties hereto that the conveyance of the Class L1-P Regular Interest to the Trust by the Company as provided in this Section 2.21 be, and be construed as, an
absolute sale of the Class L1-P Regular Interest.  It is, further, not the intention of the parties that such conveyance be deemed the grant of a security interest in the Class L1-P Regular Interest by the Company to the Trust to secure a debt or other
obligation of the Company.  However, in the event that, notwithstanding the intent of the parties, the Class L1-P Regular Interest are held to be the property of the Company, or if for any other reason this Agreement is held or deemed to create a security
interest in the Class L1-P Regular Interest, then

(a)        this Agreement shall constitute a security agreement;

(b)        the conveyance provided for in this Section 2.21 shall be deemed to be a grant by the Company to the Trust of, and the Company hereby grants to
the Trust, to secure all of the Company’s obligations hereunder, a security interest in all of the Company’s right, title, and interest, whether now owned or hereafter acquired, in and to:

(I)        The Class L1-P Regular Interest, including without limitation all rights represented thereby in and to the Mortgage Pool
Assets and the proceeds thereof;

(II)       All accounts, chattel paper, deposit accounts, documents, general intangibles, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas, and other minerals, consisting of, arising from, or relating to, any of the foregoing; and

(III)      All proceeds of the foregoing.

The Company shall file such financing statements, and the Company and the Trustee acting on behalf of the Trust at the direction of the Company shall, to the extent consistent with this
Agreement, take such other actions as may be necessary to ensure that, if this Agreement were found to create a security interest in the Class L1-P Regular Interest, such security interest would be a perfected security interest of first priority under applicable law
and will be maintained as such throughout the term of this Agreement. In connection herewith, the Trust shall have all of the rights and remedies of a secured party under the Uniform Commercial Code as in force in the relevant jurisdiction.

Section 2.22          REMIC Election for REMIC V

.  The Trustee shall, on behalf of REMIC V, elect to treat REMIC V as a REMIC within the meaning of Section 860D of the Code and, if necessary, under applicable state laws. Such election
shall be included in the Form 1066 and any appropriate state return to be filed on behalf of REMIC V for its first taxable year.

The Closing Date is hereby designated as the “startup day” of REMIC V within the meaning of Section 860G(a)(9) of the Code.

The regular interests (as set forth in the table contained in the Preliminary Statement hereto) relating to REMIC V are hereby designated as “regular interests” in REMIC V for
purposes of Section 860G(a)(1) of the Code.  The Class R-5 Residual Interest is hereby designated as the sole class of “residual interest” in REMIC V for purposes of Section 860G(a)(2) of the Code.

The parties intend that the affairs of REMIC V shall constitute, and that the affairs of REMIC V shall be conducted so as to qualify it as, a REMIC. In furtherance of such intention, the
Trustee shall, on behalf of REMIC V: (a) prepare and file, or cause to be prepared and filed, a federal tax return using a calendar year as the taxable year for REMIC V when and as required by the REMIC provisions and other applicable federal income tax laws; (b)
make an election, on behalf of REMIC V, to be treated as a REMIC on the federal tax return of REMIC V for its first taxable year, in accordance with the REMIC provisions; (c) prepare and forward, or cause to be prepared and forwarded, to the Certificateholders and
the Holders of the Class R-5 Residual Interest all information reports as and when required to be provided to them in accordance with the REMIC provisions; (d) conduct the affairs of REMIC V at all times that any of the Certificates are outstanding so as to maintain
the status of REMIC V as a REMIC under the REMIC provisions; (e) not knowingly or intentionally take any action or omit to take any action that would cause the termination of the REMIC status of REMIC V; and (f) pay the amount of any federal prohibited transaction
penalty taxes imposed on REMIC V when and as the same shall be due and payable (but such obligation shall not prevent the Trustee or any other appropriate person from contesting any such tax in appropriate proceedings and shall not prevent the Trustee from
withholding payment of such tax, if permitted by law, pending the outcome of such proceedings).

In the event that the Trustee has paid any federal prohibited transaction penalty taxes imposed on REMIC V pursuant to clause (f) of the immediately preceding paragraph, the Trustee on behalf
of the Trust shall (unless the Trustee’s failure to exercise reasonable care was the primary cause of the imposition of such taxes) reimburse the Trustee, upon the written request of the Trustee, for such payment from amounts on deposit in the Distribution
Account in reduction of the REMIC V Available Distribution Amount for the applicable Distribution Date.  In the event that any federal prohibited transaction penalty taxes are imposed on REMIC V and not paid by the Trustee pursuant to clause (f) of the
immediately preceding paragraph, the Trustee on behalf of the Trust shall pay such taxes from amounts on deposit in the Distribution Account in reduction of the REMIC V Available Distribution Amount for the applicable Distribution Date.  The amount so reimbursed
pursuant to either of the immediately preceding two sentences shall be allocated as a loss to the Class P Certificates, but shall not reduce the Certificate Principal Balance thereof.

None of the Trustee, Servicer or the Tax Matters Person shall knowingly or intentionally take any action that would cause the termination of the REMIC status of REMIC V.

Section 2.23          Acknowledgement of Transfer of Class
L1-P Regular Interest

.  The Trustee hereby acknowledges and accepts on behalf of the Trust the assignment to the Trust pursuant to Section 2.21 of the Class L1-P Regular Interest and declares that as of the
Closing Date it holds and shall hold such assets and any documents constituting a part of such assets, as Trustee in trust, upon the trust herein set forth, for the use and benefit of all present and future Holders of the Class P Certificates and the Class R-5
Residual Interest.

Section 2.24          Conveyance of
Class L3-SW Regular Interest.

The Company does hereby irrevocably sell, transfer, assign, set over, and otherwise convey to the Trust, without recourse, all the Company’s right, title and interest in and to the
Class L3-SW Regular Interest.  The Trust, as payment of the purchase price of the Class L3-SW Regular Interest, shall issue the Class L6-SW Regular Interest and the Class R-6 Residual Interest to the Company on the Closing Date.  Pursuant to Section 3818 of
the Statutory Trust Statute, the REMIC I Regular Interests, the REMIC II Regular Interests, and the Class L3-C, L1-P and L3-SW Regular Interests shall not be cancelled and shall be held as treasury interests owned by the Trust.  The Class L6-SW Regular Interest
and the Class R-6 Residual Interest shall together be a separate series of beneficial interests in the assets of the Trust consisting of the Class L3-SW Regular Interest pursuant to Section 3806(b)(2) of the Statutory Trust Statute.

It is the express intent of the parties hereto that the conveyance of the Class L3-SW Regular Interest to the Trust by the Company as provided in this Section 2.18 be, and be construed as, an
absolute sale of the Class L3-SW Regular Interest.  It is, further, not the intention of the parties that such conveyance be deemed the grant of a security interest in the Class L3-SW Regular Interest by the Company to the Trust to secure a debt or other
obligation of the Company.  However, in the event that, notwithstanding the intent of the parties, the Class L3-SW Regular Interest are held to be the property of the Company, or if for any other reason this Agreement is held or deemed to create a security
interest in the Class L3-SW Regular Interest, then

(a)        this Agreement shall constitute a security agreement;

(b)        the conveyance provided for in this Section 2.24 shall be deemed to be a grant by the Company to the Trust of, and the Company hereby grants to
the Trust, to secure all of the Company’s obligations hereunder, a security interest in all of the Company’s right, title, and interest, whether now owned or hereafter acquired, in and to:

(I)        The Class L3-SW Regular Interest, including without limitation all rights represented thereby in and to the Mortgage Pool
Assets and the proceeds thereof;

(II)       All accounts, chattel paper, deposit accounts, documents, general intangibles, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas, and other minerals, consisting of, arising from, or relating to, any of the foregoing; and

(III)      All proceeds of the foregoing.

The Company shall file such financing statements, and the Company and the Trustee acting on behalf of the Trust at the direction of the Company shall, to the extent consistent with this
Agreement, take such other actions as may be necessary to ensure that, if this Agreement were found to create a security interest in the Class L3-SW Regular Interest, such security interest would be a perfected security interest of first priority under applicable law
and will be maintained as such throughout the term of this Agreement.  In connection herewith, the Trust shall have all of the rights and remedies of a secured party under the Uniform Commercial Code as in force in the relevant jurisdiction.

Section 2.25          REMIC Election for REMIC VI

.  The Trustee shall, on behalf of REMIC VI, elect to treat REMIC VI as a REMIC within the meaning of Section 860D of the Code and, if necessary, under applicable state laws. Such
election shall be included in the Form 1066 and any appropriate state return to be filed on behalf of REMIC VI for its first taxable year.

The Closing Date is hereby designated as the “startup day” of REMIC VI within the meaning of Section 860G(a)(9) of the Code.

The regular interests (as set forth in the table contained in the Preliminary Statement hereto) relating to REMIC VI are hereby designated as “regular interests” in REMIC VI for
purposes of Section 860G(a)(1) of the Code.  The Class R-6 Residual Interest is hereby designated as the sole class of “residual interest” in REMIC VI for purposes of Section 860G(a)(2) of the Code.

The parties intend that the affairs of REMIC VI shall constitute, and that the affairs of REMIC VI shall be conducted so as to qualify it as, a REMIC.  In furtherance of such intention,
the Trustee shall, on behalf of REMIC VI: (a) prepare and file, or cause to be prepared and filed, a federal tax return using a calendar year as the taxable year for REMIC VI when and as required by the REMIC provisions and other applicable federal income tax laws;
(b) make an election, on behalf of REMIC VI, to be treated as a REMIC on the federal tax return of REMIC VI for its first taxable year, in accordance with the REMIC provisions; (c) prepare and forward, or cause to be prepared and forwarded, to the Certificateholders
and the Holders of the Class R-6 Residual Interest all information reports as and when required to be provided to them in accordance with the REMIC provisions; (d) conduct the affairs of REMIC VI at all times that any of the Certificates are outstanding so as to
maintain the status of REMIC VI as a REMIC under the REMIC provisions; (e) not knowingly or intentionally take any action or omit to take any action that would cause the termination of the REMIC status of REMIC VI; and (f) pay the amount of any federal prohibited
transaction penalty taxes imposed on REMIC VI when and as the same shall be due and payable (but such obligation shall not prevent the Trustee or any other appropriate person from contesting any such tax in appropriate proceedings and shall not prevent the Trustee
from withholding payment of such tax, if permitted by law, pending the outcome of such proceedings).

In the event that the Trustee has paid any federal prohibited transaction penalty taxes imposed on REMIC VI pursuant to clause (f) of the immediately preceding paragraph, the Trustee on behalf
of the Trust shall (unless the Trustee’s failure to exercise reasonable care was the primary cause of the imposition of such taxes) reimburse the Trustee, upon the written request of the Trustee, for such payment from amounts on deposit in the Distribution
Account in reduction of the REMIC VI Available Distribution Amount for the applicable Distribution Date.  In the event that any federal prohibited transaction penalty taxes are imposed on REMIC VI and not paid by the Trustee pursuant to clause (f) of the
immediately preceding paragraph, the Trustee on behalf of the Trust shall pay such taxes from amounts on deposit in the Distribution Account in reduction of the REMIC VI Available Distribution Amount for the applicable Distribution Date.  The amount so
reimbursed pursuant to either of the immediately preceding two sentences shall be allocated as a loss to the Class L6 SW Regular Interests.

None of the Trustee, Servicer or the Tax Matters Person shall knowingly or intentionally take any action that would cause the termination of the REMIC status of REMIC IV.

Section 2.26          Acknowledgement of Transfer of Class
L3-SW Regular Interest

.  The Trustee hereby acknowledges and accepts on behalf of the Trust the assignment to the Trust pursuant to Section 2.24 of the Class L3-SW Regular Interest and declares that as of the
Closing Date it holds and shall hold such assets and any documents constituting a part of such assets, as Trustee in trust, upon the trust herein set forth, for the use and benefit of all present and future Holders of the Class L6-SW Regular Interest and the Class
R-6 Residual Interest.

Section 2.27          Legal Title

.  Legal title to all assets of the Trust shall be vested at all times in the Trust as a separate legal entity.

Section 2.28          Compliance with ERISA Requirements

.  For purposes of ensuring compliance with the requirements of the “underwriter’s exemption” (U.S. Department of Labor Prohibited Transaction Exemption 2002-41, 67
Fed. Reg. 54487 (Aug. 22, 2002)), issued under ERISA, and for the avoidance of any doubt as to the applicability of other provisions of this Agreement, to the fullest extent permitted by applicable law and except as contemplated by this Agreement, the Trust shall not
be a party to any merger, consolidation or reorganization, or liquidate or sell its assets.

Section 2.29          Additional Representation Concerning the Mortgage Loans

.  The Mortgage Loans permitted by the terms of this Agreement to be included in the Trust are limited to (i) the Mortgage Loans (which the Company acquired pursuant to the Mortgage Loan
Purchase Agreement, which contains, among other representations and warranties, a representation and warranty of the Seller that no Mortgage Loan is a “high-cost” or “predatory” loan under any state or local law or regulation applicable to the
originator), and (ii) Qualified Substitute Mortgage Loans (which, by definition as set forth herein and referred to in the Mortgage Loan Purchase Agreement, are required to conform to, among other representations and warranties, the representation and warranty of the
Seller that no Qualified Substitute Mortgage Loan is a “high cost” or “predatory” loan under any state or local law or regulation applicable to the originator).  Based on the Seller’s obligation, pursuant to Section 3.3 of the
Mortgage Loan Purchase Agreement, to repurchase or substitute for the affected Mortgage Loan in the event of a breach of the representation set forth in clauses (xxvii) or (xxviii) of such Section 3.3 thereof, the parties hereto agree and understand that it is not
intended for the Mortgage Pool to include any Mortgage Loan that is a “high-cost home loan” as defined under the New Jersey Home Ownership Security Act of 2002, the New Mexico Home Loan Protection Act, the Massachusetts Predatory Home Loan
Practices Act or the Indiana Home Loan Practices Act (Indiana Code, Section 24-9 et seq.).

Section 2.30     No Other Interests.  The Trustee shall not permit the creation of any “interests” in REMIC I, REMIC II, REMIC III, REMIC IV, REMIC
V or REMIC VI (within the meaning of Section 860G of the Code) other than the REMIC I Regular Interests, the REMIC II Regular Interests, the REMIC III Regular Interests, the Class L6-SW Regular Interest and the interests represented by the Certificates.

ARTICLE III

Administration and Servicing of the Mortgage Loans

Section 3.01          The Servicer.

(a)                The Servicer
shall service and administer the Mortgage Loans on behalf of the Trustee and in the best interests of and for the benefit of the Certificateholders (as determined by the Servicer in its reasonable judgment) in accordance with the terms of this Agreement and the
respective Mortgage Loans and, to the extent consistent with such terms, in the same manner in which it services and administers similar mortgage loans for its own portfolio, giving due consideration to customary and usual standards of practice of mortgage lenders
and loan servicers administering similar mortgage loans in the local areas where the related Mortgaged Property is located but without regard to:

(i)                  any relationship that the Servicer, any
Sub‐Servicer or any Affiliate of the Servicer or any Sub‐Servicer may have with the related Mortgagor;

(ii)                the ownership or non‐ownership of any Certificate by the
Servicer or any Affiliate of the Servicer;

(iii)               the Servicer’s obligation to make Advances or Servicing
Advances; or

(iv)              the Servicer’s or any Sub‐Servicer’s right to receive
compensation for its services hereunder or with respect to any particular transaction.

To the extent consistent with the foregoing, the Servicer shall seek to maximize the timely and complete recovery of principal and interest on the Mortgage Notes.  Subject only to the
above‐described servicing standards and the terms of this Agreement and of the respective Mortgage Loans, the Servicer shall have full power and authority, acting alone or through Sub‐Servicers as provided in Section 3.02, to do or cause to be done
any and all things in connection with such servicing and administration in accordance with policies and procedures generally accepted in the mortgage banking industry.  Without limiting the generality of the foregoing, the Servicer in its own name or in the name
of a Sub‐Servicer is hereby authorized and empowered by the Trustee when the Servicer believes it appropriate in its best judgment in accordance with the servicing standards set forth above, to execute and deliver, on behalf of the Certificateholders and the
Trustee, and upon notice to the Trustee, any and all instruments of satisfaction or cancellation, or of partial or full release or discharge, and all other comparable instruments, with respect to the Mortgage Loans and the Mortgaged Properties and to institute
foreclosure proceedings or obtain a deed‐in‐lieu of foreclosure so as to convert the ownership of such properties, and to hold or cause to be held title to such properties, on behalf of the Trustee and the Certificateholders.  The Servicer shall
service and administer the Mortgage Loans in accordance with applicable state and federal law and shall provide to the Mortgagors any reports required to be provided to them thereby.  The Servicer shall also comply in the performance of this Agreement with all
reasonable rules and requirements of each insurer under any standard hazard insurance policy.  Subject to Section 3.17, the Trustee, shall execute, at the written direction of the Servicer, and furnish to the Servicer and any Sub‐Servicer such
documents as are necessary or appropriate to enable the Servicer or any Sub‐Servicer to carry out their servicing and administrative duties hereunder, and the Trustee hereby grants to the Servicer and each Sub-Servicer a power of attorney to carry out such
duties including a power of attorney to take title to Mortgaged Properties after foreclosure on behalf of the Trustee and the Certificateholders.  The Trustee, at the direction of the Servicer, shall execute a separate power of attorney in favor of (and furnish
such power of attorney to) the Servicer and/or each Sub-Servicer for the purposes described herein to the extent necessary or desirable to enable the Servicer to perform its duties hereunder.  The Trustee shall not be liable for the actions of the Servicer or
any Sub‐Servicers under such powers of attorney.

The Servicer further is authorized and empowered by the Trustee, on behalf of the Certificateholders and the Trustee, in its own name or in the name of the Sub-Servicer, when the Servicer or
the Sub-Servicer, as the case may be, believes it is appropriate in its best judgment to register any Mortgage Loan on the MERS® System, or cause the removal from the registration of any Mortgage Loan on the MERS® System, to execute and deliver, on behalf of
the Trustee and the Certificateholders or any of them, any and all instruments of assignment and other comparable instruments with respect to such assignment or re-recording of a Mortgage in the name of MERS, solely as nominee for the Trustee and its successors and
assigns. Any reasonable expenses incurred in connection with the actions described in the preceding sentence or as a result of MERS discontinuing or becoming unable to continue operations in connection with the MERS® System, shall be reimbursable to the Servicer
by withdrawal from the Collection Account pursuant to Section 3.11.

Subject to Section 3.09 hereof, in accordance with the standards of the preceding paragraph, the Servicer shall advance or cause to be advanced funds as necessary for the purpose of
effecting the timely payment of taxes and assessments on the Mortgaged Properties, which advances shall be Servicing Advances reimbursable in the first instance from collections on the related Mortgage Loans from the Mortgagors pursuant to Section 3.09, and
further as provided in Section 3.11.  Any cost incurred by the Servicer or by Sub‐Servicers in effecting the timely payment of taxes and assessments on a Mortgaged Property shall not, for the purpose of calculating distributions to Certificateholders,
be added to the unpaid principal balance of the related Mortgage Loan, notwithstanding that the terms of such Mortgage Loan so permit.

Notwithstanding anything in this Agreement to the contrary, the Servicer may not make any future advances with respect to a Mortgage Loan (except as provided in Section 4.02) and the
Servicer shall not (i) permit any modification with respect to any Mortgage Loan that would change the Mortgage Rate, reduce or increase the principal balance (except for reductions resulting from actual payments of principal) or change the final maturity date
on such Mortgage Loan (unless, as provided in Section 3.07, the Mortgagor is in default with respect to the Mortgage Loan or such default is, in the judgment of the Servicer, reasonably foreseeable) or (ii) permit any modification, waiver or amendment of
any term of any Mortgage Loan that would both (A) effect an exchange or reissuance of such Mortgage Loan under Section 1001 of the Code (or final, temporary or proposed Treasury regulations promulgated thereunder) and (B) cause any Trust REMIC to fail
to qualify as a REMIC under the Code or the imposition of any tax on “prohibited transactions” or contributions after the startup day under the REMIC Provisions.

The Servicer may delegate its responsibilities under this Agreement; provided, however, that no such delegation shall release the Servicer from the responsibilities or
liabilities arising under this Agreement.

With respect to each Mortgage Loan, the Servicer will furnish, or cause to be furnished, information regarding the borrower credit file related to such Mortgage Loan to credit reporting
agencies in compliance with the provisions of the Fair Credit Reporting Act and the applicable implementing regulations.

Section 3.02          Sub‐Servicing Agreements Between the Servicer and Sub‐Servicers.

(a)                The Servicer may
enter into Sub‐Servicing Agreements provided (i) that such agreements would not result in a withdrawal or a downgrading by any Rating Agency of the ratings on any Class of Certificates, any of the Other NIM Notes or any of the Insured NIM Notes
(without giving effect to any insurance policy issued by the NIMS Insurer), as evidenced by a letter to that effect delivered by each Rating Agency to the Company and the NIMS Insurer and (ii) that, except in the case of any Sub‐Servicing Agreements the
Servicer may enter into with Washington Mutual, Inc. or any Affiliate thereof, the NIMS Insurer shall have consented to such Sub‐Servicing Agreements (which consent shall not be unreasonably withheld) with Sub‐Servicers, for the servicing and
administration of the Mortgage Loans.  The Trustee is hereby authorized and directed to acknowledge, at the request of the Servicer, any Sub‐Servicing Agreement that (as certified to the Trustee by the Servicer) meets the requirements applicable to
Sub‐Servicing Agreements set forth in this Agreement and that is otherwise permitted under this Agreement.

Each Sub‐Servicer shall be (i) authorized to transact business in the state or states in which the related Mortgaged Properties it is to service are situated, if and to the extent
required by applicable law to enable the Sub‐Servicer to perform its obligations hereunder and under the Sub‐Servicing Agreement, (ii) an institution approved as a mortgagee by the Department of Housing and Urban Development pursuant to Section 203
of the National Housing Act of 1934, as amended, or an institution the deposit accounts in which are insured by the FDIC and (iii) a Fannie Mae approved mortgage servicer.  Each Sub‐Servicing Agreement must impose on the Sub‐Servicer
requirements conforming to the provisions set forth in Section 3.08.  The Servicer will examine each Sub‐Servicing Agreement and will be familiar with the terms thereof.  The terms of any Sub‐Servicing Agreement will not be inconsistent
with any of the provisions of this Agreement.  The Servicer and the Sub‐Servicers may enter into and make amendments to the Sub‐Servicing Agreements or enter into different forms of Sub‐Servicing Agreements; provided, however,
that any such amendments or different forms shall be consistent with and not violate the provisions of this Agreement, and that no such amendment or different form shall be made or entered into which could be reasonably expected to be materially adverse to the
interests of the Certificateholders, without the consent of the Holders of Certificates entitled to at least 66% of the Voting Rights.  Any variation without the consent of the Holders of Certificates entitled to at least 66% of the Voting Rights from the
provisions set forth in Section 3.08 relating to credits and charges to the Sub‐Servicing Accounts or the timing and amount of remittances by the Sub‐Servicers to the Servicer are conclusively deemed to be inconsistent with this Agreement and
therefore prohibited.  The Servicer shall deliver to the NIMS Insurer and the Trustee copies of all Sub‐Servicing Agreements, and any amendments or modifications thereof, promptly upon the Servicer’s execution and delivery of such
instruments.

(b)               As part of its
servicing activities hereunder, the Servicer (except as otherwise provided in the last sentence of this paragraph), for the benefit of the Trustee and the Certificateholders, shall enforce the obligations of each Sub‐Servicer under the related
Sub‐Servicing Agreement and, subject to the last sentence of this paragraph, of the Seller under the Mortgage Loan Purchase Agreement including, without limitation, any obligation to make advances in respect of delinquent payments as required by a
Sub‐Servicing Agreement, or to purchase or otherwise remedy as contemplated herein a Mortgage Loan on account of missing or defective documentation or on account of a breach of a representation, warranty or covenant, as described in Section 2.09. 
Such enforcement, including, without limitation, the legal prosecution of claims, termination of Sub‐Servicing Agreements, and the pursuit of other appropriate remedies, shall be in such form and carried out to such an extent and at such time as the Servicer,
in its good faith business judgment, would require were it the owner of the related Mortgage Loans.  The Servicer shall pay the costs of such enforcement at its own expense, and shall be reimbursed therefor only (i) from a general recovery resulting from
such enforcement, to the extent, if any, that such recovery exceeds all amounts due in respect of the related Mortgage Loans or (ii) from a specific recovery of costs, expenses or attorneys’ fees against the party against whom such enforcement is
directed.  Enforcement of the Mortgage Loan Purchase Agreement against the Seller shall be effected by the Servicer to the extent it is not the Seller, and otherwise by the Trustee, in accordance with the foregoing provisions of this paragraph.

Section 3.03          Successor Sub‐Servicers

.  The Servicer, with the written consent of the NIMS Insurer, shall be entitled to terminate any Sub‐Servicing Agreement and the rights and obligations of any
Sub‐Servicer pursuant to any Sub‐Servicing Agreement in accordance with the terms and conditions of such Sub‐Servicing Agreement.  In the event of termination of any Sub‐Servicer, all servicing obligations of such Sub‐Servicer shall
be assumed simultaneously by the Servicer without any act or deed on the part of such Sub‐Servicer or the Servicer, and the Servicer either shall service directly the related Mortgage Loans or shall enter into a Sub‐Servicing Agreement with a successor
Sub‐Servicer which qualifies under Section 3.02.

Any Sub‐Servicing Agreement shall include the provision that such agreement may be immediately terminated by the Trustee without fee, in accordance with the terms of this Agreement, and
the Trustee shall so terminate such Sub‐Servicing Agreement at the direction of the NIMS Insurer in the event that the Servicer (or the Trustee, if then acting as Servicer) shall, for any reason, no longer be the Servicer (including termination due to a Event
of Default).

Section 3.04          Liability of the Servicer

.  Notwithstanding any Sub‐Servicing Agreement, any of the provisions of this Agreement relating to agreements or arrangements between the Servicer and a Sub‐Servicer
or reference to actions taken through a Sub‐Servicer or otherwise, the Servicer shall remain obligated and primarily liable to the Trustee and the Certificateholders for the servicing and administering of the Mortgage Loans in accordance with the provisions of
Section 3.01 without diminution of such obligation or liability by virtue of such Sub‐Servicing Agreements or arrangements or by virtue of indemnification from the Sub‐Servicer and to the same extent and under the same terms and conditions as if the
Servicer alone were servicing and administering the Mortgage Loans.  The Servicer shall be entitled to enter into any agreement with a Sub‐Servicer for indemnification of the Servicer by such Sub‐Servicer and nothing contained in this Agreement shall
be deemed to limit or modify such indemnification and no such indemnification shall be an expense of the Trust.

Section 3.05          No Contractual Relationship Between Sub‐Servicers and the NIMS Insurer, the Trustee or
Certificateholders

.  Any Sub‐Servicing Agreement that may be entered into and any transactions or services relating to the Mortgage Loans involving a Sub‐Servicer in its capacity as
such shall be deemed to be between the Sub‐Servicer and the Servicer alone, and the Trustee, the NIMS Insurer and the Certificateholders shall not be deemed parties thereto and shall have no claims, rights, obligations, duties or liabilities with respect to the
Sub‐Servicer except as set forth in Section 3.06.  The Servicer shall be solely liable for all fees owed by it to any Sub‐Servicer, irrespective of whether the Servicer’s compensation pursuant to this Agreement is sufficient to pay such
fees and such fees shall not be an expense of the Trust.

Section 3.06          Assumption or Termination of Sub‐Servicing Agreements by Trustee

.  In the event the Servicer shall for any reason no longer be the servicer (including by reason of the occurrence of a Event of Default), the Trustee or its designee shall
thereupon assume all of the rights and obligations of the Servicer under each Sub‐Servicing Agreement that the Servicer may have entered into, unless the Trustee elects to terminate any Sub‐Servicing Agreement in accordance with its terms as provided in
Section 3.03.  Upon such assumption, the Trustee, its designee or the successor servicer for the Trustee appointed pursuant to Section 7.02 shall be deemed, subject to Section 3.03, to have assumed all of the Servicer’s interest therein and
to have replaced the Servicer as a party to each Sub‐Servicing Agreement to the same extent as if each Sub‐Servicing Agreement had been assigned to the assuming party, except that (i) the Servicer shall not thereby be relieved of any liability or
obligations under any Sub‐Servicing Agreement that arose before it ceased to be the Servicer and (ii) none of the Trustee, its designee or any successor Servicer shall be deemed to have assumed any liability or obligation of the Servicer that arose before
it ceased to be the Servicer.

The Servicer at its own expense and without reimbursement shall, upon request of the Trustee, deliver to the assuming party all documents and records relating to each Sub‐Servicing
Agreement and the Mortgage Loans then being serviced and an accounting of amounts collected and held by or on behalf of it, and otherwise use its best efforts to effect the orderly and efficient transfer of the Sub‐Servicing Agreements to the assuming
party.

Section 3.07          Collection of Certain Mortgage Loan Payments

.  The Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Mortgage Loans, and shall, to the extent such procedures
shall be consistent with this Agreement and the terms and provisions of any applicable insurance policies, follow such collection procedures as it would follow with respect to mortgage loans comparable to the Mortgage Loans and held for its own account. 
Consistent with the foregoing, the Servicer may in its discretion (i) waive any late payment charge or, if applicable, any penalty interest, or (ii) extend the due dates for the Monthly Payments due on a Mortgage Note for a period of not greater than 180
days; provided that any extension pursuant to this clause (ii) shall not affect the amortization schedule of any Mortgage Loan for purposes of any computation hereunder, except as provided below.  In the event of any such arrangement pursuant to
clause (ii) above, the Servicer shall make timely advances on such Mortgage Loan during such extension pursuant to Section 4.02 and in accordance with the amortization schedule of such Mortgage Loan without modification thereof by reason of such arrangements,
subject to Section 4.03 pursuant to which the Servicer shall not be required to make any such advances that are Nonrecoverable Advances.  Notwithstanding the foregoing, in the event that any Mortgage Loan is in default or, in the judgment of the Servicer,
such default is reasonably foreseeable, the Servicer, consistent with the standards set forth in Section 3.01, may also waive, modify or vary any term of such Mortgage Loan (including modifications that would change the Mortgage Rate, forgive the payment of
principal or interest or extend the final maturity date of such Mortgage Loan, accept payment from the related Mortgagor of an amount less than the Stated Principal Balance in final satisfaction of such Mortgage Loan (such payment, a “Short
Pay‐off”) or consent to the postponement of strict compliance with any such term or otherwise grant indulgence to any Mortgagor; provided, that in the judgment of the Servicer, any such modification, waiver or amendment could reasonably be
expected to result in collections and other recoveries in respect of such Mortgage Loans in excess of Net Liquidation Proceeds that would be recovered upon the foreclosure of, or other realization upon, such Mortgage Loan and provided further, that the
NIMS Insurer’s prior written consent shall be required for any modification, waiver or amendment if the aggregate number of outstanding Mortgage Loans which have been modified, waived or amended exceeds 5% of the number of Closing Date Mortgage Loans as of the
Cut‐off Date. 

Section 3.08          Sub‐Servicing Accounts

.  In those cases where a Sub‐Servicer is servicing a Mortgage Loan pursuant to a Sub‐Servicing Agreement, the Sub‐Servicer shall be required to establish and
maintain one or more segregated accounts (collectively, the “Sub‐Servicing Account”).  The Sub‐Servicing Account shall be an account with an Eligible Institution and shall be entitled “[Name of Sub-Servicer], as Trustee, in
trust for holders of Washington Mutual Asset-Backed Certificates WMABS Series 2006‐HE1.”  The Sub‐Servicer shall be required to deposit in the clearing account (which account must be with an Eligible Institution) in which it customarily
deposits payments and collections on mortgage loans in connection with its mortgage loan servicing activities on a daily basis, and in no event more than one Business Day after the Sub‐Servicer’s receipt thereof, all proceeds of Mortgage Loans received by
the Sub‐Servicer less its servicing compensation to the extent permitted by the Sub‐Servicing Agreement, and shall thereafter deposit such amounts in the Sub‐Servicing Account, in no event more than two Business Days after the deposit of such funds
into the clearing account.  The Sub‐Servicer shall thereafter be required to deposit all such proceeds in the Collection Account or remit such proceeds to the Servicer for deposit in the Collection Account not later than the Determination Date following
the deposit of such amounts in the Sub‐Servicing Account.  For purposes of this Agreement, the Servicer shall be deemed to have received payments on the Mortgage Loans when the Sub‐Servicer receives such payments.

Section 3.09          Collection of Taxes, Assessments and Similar Items; Servicing Accounts

.  The Servicer shall establish and maintain, or cause to be established and maintained, one or more segregated accounts (the “Servicing Accounts”). 
Servicing Accounts shall be maintained with an Eligible Institution.  The Servicer shall deposit in the clearing account (which account must be with an Eligible Institution) in which it customarily deposits payments and collections on mortgage loans in
connection with its mortgage loan servicing activities on a daily basis, and in no event more than one Business Day after the Servicer’s receipt thereof, all collections from the Mortgagors (or related advances from Sub‐Servicers) for the payment of
taxes, assessments, hazard insurance premiums and comparable items for the account of the Mortgagors (“Escrow Payments”) collected on account of the Mortgage Loans and shall thereafter deposit such Escrow Payments in the Servicing Accounts, in no
event more than two Business Days after the deposit of such funds in the clearing account, for the purpose of effecting the payment of any such items as required under the terms of this Agreement.  Withdrawals of amounts from a Servicing Account may be made only
to (i) effect payment of taxes, assessments, hazard insurance premiums, and comparable items; (ii) reimburse the Servicer (or a Sub‐Servicer to the extent provided in the related Sub‐Servicing Agreement) out of related collections for any
advances made pursuant to Section 3.01 (with respect to taxes and assessments) and Section 3.14 (with respect to hazard insurance); (iii) refund to Mortgagors any sums as may be determined to be overages; (iv) pay interest, if required and as
described below, to Mortgagors on balances in the Servicing Account; (v) clear and terminate the Servicing Account upon the termination of the Servicer’s obligations and responsibilities in respect of the Mortgage Loans under this Agreement in accordance
with Article IX or (vi) recover amounts deposited in error.  As part of its servicing duties, the Servicer or Sub‐Servicers shall pay to the Mortgagors interest on funds in Servicing Accounts, to the extent required by law and, to the extent that
interest earned on funds in the Servicing Accounts is insufficient, to pay such interest from its or their own funds, without any reimbursement therefor.  To the extent that a Mortgage does not provide for Escrow Payments, the Servicer shall determine whether
any such payments are made by the Mortgagor in a manner and at a time that avoids the loss of the Mortgaged Property due to a tax sale or the foreclosure of a tax lien.  The Servicer assumes full responsibility for the payment of all such bills within such time
and shall effect 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; provided, however,
that such advances shall constitute Servicing Advances.

Section 3.10          Collection Account and Distribution Account.

(a)                On behalf of the
Trust Fund, the Servicer shall establish and maintain, or cause to be established and maintained, one or more segregated accounts (such account or accounts, the “Collection Account”), held in trust for the benefit of the Trustee and the
Certificateholders.  On behalf of the Trust Fund, the Servicer shall deposit or cause to be deposited in the clearing account (which account must be with an Eligible Institution) in which it customarily deposits payments and collections on mortgage loans in
connection with its mortgage loan servicing activities on a daily basis, and in no event more than one Business Day after the Servicer’s receipt thereof, and shall thereafter deposit in the Collection Account, in no event more than two Business Days after the
deposit of such funds into the clearing account, as and when received or as otherwise required hereunder, the following payments and collections received or made by it subsequent to the Cut‐off Date (other than in respect of principal or interest on the related
Mortgage Loans due on or before the Cut‐off Date or payments (other than Principal Prepayments) received by it on or prior to the Cut‐off Date but allocable to a Due Period subsequent thereto):

(i)                  all payments on account of principal, including
Principal Prepayments, on the Mortgage Loans;

(ii)                all payments on account of interest (net of the related
Servicing Fee and the related Prepayment Interest Excess) on each Mortgage Loan;

(iii)               all Insurance Proceeds and Liquidation Proceeds (other than proceeds
collected in respect of any particular REO Property and amounts paid by the Servicer in connection with a purchase of Mortgage Loans and REO Properties pursuant to Section 9.01) and all Gross Subsequent Recoveries;

(iv)              any amounts required to be deposited pursuant to Section 3.12 in
connection with any losses realized on Eligible Investments with respect to funds held in the Collection Account;

(v)                any amounts required to be deposited by the Servicer pursuant to
the second paragraph of Section 3.14(a) in respect of any blanket policy deductibles;

(vi)              all proceeds of any Mortgage Loan repurchased or purchased in accordance
with Section 2.08, Section 3.16(c) or Section 9.01 and all Servicer Prepayment Charge Payment Amounts required to be deposited in the Collection Account pursuant to Section 2.08;

(vii)             all Substitution Adjustments; and

(viii)           all Assigned Prepayment Charges collected by the Servicer.

For purposes of the immediately preceding sentence, the Cut‐off Date with respect to any Qualified Substitute Mortgage Loan shall be deemed to be the date of substitution.

The foregoing requirements for deposit in the Collection Accounts shall be exclusive, it being understood and agreed that, without limiting the generality of the foregoing, any Prepayment
Interest Excess and payments in the nature of late payment charges, NSF fees, reconveyance fees, Prepayment Charges that are not Assigned Prepayment Charges, assumption fees and other similar fees and charges need not be deposited by the Servicer in the Collection
Account and shall, upon collection, belong to the Servicer as additional compensation for its servicing activities.  In the event the Servicer shall deposit in the Collection Account any amount not required to be deposited therein, it may at any time withdraw
such amount from the Collection Account, any provision herein to the contrary notwithstanding.

(b)               On behalf of the Trust
Fund, the Trustee shall establish and maintain one or more segregated accounts (such account or accounts, the “Distribution Account”), held in trust for the benefit of the Trustee and the Certificateholders.  On behalf of the Trust Fund, the
Servicer shall deliver to the Trustee in immediately REMIC I Available Distribution Amount for deposit on the same day in the Distribution Account on or before 3:00 p.m. New York time on the Servicer Remittance Date, that portion of the REMIC I Available
Distribution Amount (calculated without regard to the references in the definition thereof to amounts that may be withdrawn from the Distribution Account) for the related Distribution Date then on deposit in the Collection Account, the amount of all Assigned
Prepayment Charges on the Prepayment Charge Schedule collected by the Servicer in connection with any of the Mortgage Loans and any Servicer Prepayment Charge Payment Amounts then on deposit in the Collection Account.  In order to comply with its duties under
the U.S.A. Patriot Act, the Trustee shall obtain and verify certain information and documentation from the parties hereto, including, but not limited to, each party’s name, address, and other identifying information.

(c)                Funds in the
Collection Account and the Distribution Account may be invested in Eligible Investments in accordance with the provisions set forth in Section 3.12.  The Servicer shall give notice to the Trustee, the NIMS Insurer, the Company and the Rating Agencies of the
location of the Collection Account maintained by it when established and prior to any change thereof.  The Trustee shall give notice to the Servicer, the NIMS Insurer, the Company and the Rating Agencies of the location of the Distribution Account when
established and prior to any change thereof.

(d)               Funds held in the
Collection Account at any time may be delivered by the Servicer to the Trustee for deposit in an account (which may be the Distribution Account and must satisfy the standards for the Distribution Account as set forth in the definition thereof) and for all purposes of
this Agreement shall be deemed to be a part of the Collection Account; provided, however, that the Trustee shall have the sole authority to withdraw any funds held pursuant to this subsection (d).  In the event the Servicer shall deliver to
the Trustee for deposit in the Distribution Account any amount not required to be deposited therein, it may at any time request that the Trustee withdraw, and the Trustee shall withdraw, such amount from the Distribution Account and remit to the Servicer any such
amount, any provision herein to the contrary notwithstanding.  In addition, the Servicer shall deliver to the Trustee from time to time for deposit, and the Trustee shall so deposit, in the Distribution Account:

(i)                  any Advances, as required pursuant to
Section 4.02;

(ii)                any amounts required to be deposited pursuant to
Section 3.23(d) or (f) in connection with any REO Property;

(iii)               any amounts to be paid by the Servicer in connection with a purchase
of Mortgage Loans and REO Properties pursuant to Section 9.01;

(iv)              any amounts required to be deposited pursuant to Section 3.24 in
connection with any Prepayment Interest Shortfalls; and

(v)                any Stayed Funds, as soon as permitted by the federal bankruptcy
court having jurisdiction in such matters.

(e)                Promptly upon
receipt of any Stayed Funds, whether from the Servicer, a trustee in bankruptcy, federal bankruptcy court or other source, the Trustee shall deposit such funds in the Distribution Account.

Section 3.11          Permitted Withdrawals from the Collection Account and Distribution Account.

(a)                The Servicer
shall, from time to time, make withdrawals from the Collection Account, for any of the following purposes or as described in Section 4.02, without priority:

(i)                  to remit to the Trustee for deposit in the
Distribution Account the amounts required to be so remitted pursuant to Section 3.10(b) or permitted to be so remitted pursuant to the first sentence of Section 3.10(d);

(ii)                subject to Section 3.16(d), to reimburse the Servicer for
Advances, but only to the extent of amounts received which represent Late Collections (net of the related Servicing Fees) of Monthly Payments on the related Mortgage Loans in accordance with the provisions of Section 4.02;

(iii)               subject to Section 3.16(d), to pay the Servicer or any
Sub‐Servicer (a) any unpaid Servicing Fees or (b) any unreimbursed Servicing Advances with respect to each Mortgage Loan, but only to the extent of any Late Collections, Liquidation Proceeds, Insurance Proceeds, Gross Subsequent Recoveries or other
amounts as may be collected by the Servicer from a Mortgagor, or otherwise received with respect to such Mortgage Loan;

(iv)              to pay to the Servicer as servicing compensation (in addition to the
Servicing Fee) on the Servicer Remittance Date any interest or investment income earned on funds deposited in the Collection Account;

(v)                to pay to the Servicer or the Seller, as the case may be, with
respect to each Mortgage Loan that has previously been purchased or replaced pursuant to Section 2.08 or Section 3.16(c) all amounts received thereon subsequent to the date of purchase or substitution, as the case may be;

(vi)              to reimburse the Servicer for any Advance or Servicing Advance previously
made which the Servicer has determined to be a Nonrecoverable Advance in accordance with the provisions of Section 4.02;

(vii)             to reimburse the Servicer or the Company for expenses incurred by or reimbursable
to the Servicer or the Company, as the case may be, pursuant to Section 6.03;

(viii)           to reimburse the NIMS Insurer, the Servicer or the Trustee, as the case may be, for
enforcement expenses reasonably incurred in respect of the breach or defect giving rise to the purchase obligation under Section 2.08 of this Agreement that were included in the Purchase Price of the Mortgage Loan, including any expenses arising out of the
enforcement of the purchase obligation; provided, however, that the reimbursement to the NIMS Insurer pursuant to this clause shall be limited to an annual amount of $25,000;

(ix)              to pay, or to reimburse the Servicer for advances in respect of, expenses
incurred in connection with any Mortgage Loan pursuant to Section 3.16(b); and

(x)                to clear and terminate the Collection Account pursuant to
Section 9.01.

The Servicer shall keep and maintain separate accounting, on an individual Mortgage Loan basis, for the purpose of justifying any withdrawal from the Collection Account, to the extent held by
or on behalf of it, pursuant to subclauses (ii), (iii), (v), (vi), (viii) and (ix) above.  The Servicer shall provide written notification to the Trustee and the NIMS Insurer, on or prior to the next succeeding Servicer Remittance Date, upon making any
withdrawals from the Collection Account pursuant to subclause (vii) above.

(b)               The Trustee shall, from
time to time, make withdrawals from the Distribution Account, for any of the following purposes, without priority:

(i)                  to make distributions to Certificateholders and for
deposit into the Reserve Fund and the Supplemental Interest Account in accordance with Section 4.05;

(ii)                to pay any Extraordinary Trust Fund Expenses;

(iii)               to pay to itself any interest income earned on funds deposited in the
Distribution Account pursuant to Section 3.12(c);

(iv)              to reimburse itself pursuant to Section 7.02 or pursuant to
Section 7.01 to the extent such amounts in Section 7.01 were not reimbursed by the Servicer;

(v)                to pay any tax imposed on prohibited transactions of any Trust
REMIC created hereunder pursuant to Section 860F(a) of the Code, on the net income from foreclosure property of any such REMIC pursuant to Section 860G(c) of the Code, or on any contributions to any such REMIC after the “startup day” therefor
pursuant to Section 860G(d) of the Code, or any other tax is imposed by the Code or any applicable provisions of state or local tax laws, unless such tax arises out of or results from a breach by the Trustee or the Servicer of any of their obligations under this
Agreement;

(vi)              to pay any and all expenses relating to any tax audit of the Trust Fund
(including, but not limited to, any professional fees or any administrative or judicial proceedings with respect to any Trust REMIC that involve the Internal Revenue Service or state tax authorities) unless such expenses, professional fees or any administrative or
judicial proceedings are incurred by reason of the Trustee’s willful misfeasance, bad faith or negligence;

(vii)             to remit to the Servicer any amount deposited in the Distribution Account by the
Servicer but not required to be deposited therein in accordance with Section 3.10(d);

(viii)           to clear and terminate the Distribution Account pursuant to Section 9.01; and

(ix)              to pay itself the Trustee Fees.

Section 3.12          Investment Accounts; Eligible Investments.

(a)                The Servicer may
direct any depository institution maintaining the Collection Account and any REO Account (for purposes of this Section 3.12, an “Investment Account”), and the Trustee, in its individual capacity, may direct any depository institution
maintaining the Distribution Account (for purposes of this Section 3.12, the Distribution Account is also an “Investment Account”), to invest the funds in such Investment Account in one or more Eligible Investments bearing interest or sold at
a discount, and maturing, unless payable on demand, (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from such account pursuant to this Agreement, if a Person other than the Trustee is the obligor
thereon and (ii) no later than the date on which such funds are required to be withdrawn from such account pursuant to this Agreement, if the Trustee is the obligor thereon.  All such Eligible Investments shall be held to maturity, unless payable on
demand.  Any investment of funds in an Investment Account shall be made in the name of the Trustee (in its capacity as such), or in the name of a nominee of the Trustee.  The Trustee shall be entitled to sole possession (except with respect to investment
direction of funds held in the Collection Account and any REO Account and any income and gain realized thereon) over each such investment, and any certificate or other instrument evidencing any such investment shall be delivered directly to the Trustee or its agent,
together with any document of transfer necessary to transfer title to such investment to the Trustee or its nominee.  In the event amounts on deposit in an Investment Account are at any time invested in a Permitted Investment payable on demand, the Trustee
shall:

(x)        consistent with any notice required to be given thereunder, demand that payment thereon be made on the last day such
Permitted Investment may otherwise mature hereunder in an amount equal to the lesser of (1) all amounts then payable thereunder and (2) the amount required to be withdrawn on such date; and

(y)        demand payment of all amounts due thereunder promptly upon actual notice by a Responsible Officer of the Trustee that
such Permitted Investment would not constitute a Permitted Investment in respect of funds thereafter on deposit in the Investment Account.

(b)               All income and gain
realized from the investment of funds deposited in the Collection Account and any REO Account held by or on behalf of the Servicer shall be for the benefit of the Servicer and shall be subject to its withdrawal in accordance with Section 3.11 or
Section 3.23, as applicable.  The Servicer shall deposit in the Collection Account or any REO Account, as applicable, from its own funds, the amount of any loss of principal incurred in respect of any such Permitted Investment made with funds in such
accounts immediately upon realization of such loss.

(c)                All income and
gain realized from the investment of funds deposited in the Distribution Account held by or on behalf of the Trustee shall be for the benefit of the Trustee and shall be subject to its withdrawal at any time.  The Trustee shall deposit in the Distribution
Account, from its own funds, the amount of any loss of principal incurred in respect of any such Permitted Investment made with funds in such accounts immediately upon realization of such loss.

(d)               Except as otherwise
expressly provided in this Agreement, if any default occurs in the making of a payment due under any Permitted Investment, or if a default occurs in any other performance required under any Permitted Investment, the Trustee may, and subject to Section 8.01 and
Section 8.02(a)(v), upon the request of the Holders of Certificates representing more than 50% of the Voting Rights allocated to any Class of Certificates shall, take such action as may be appropriate to enforce such payment or performance, including the
institution and prosecution of appropriate proceedings.

Section 3.13         [Reserved]. 

Section 3.14          Maintenance of Hazard Insurance and Errors and Omissions and Fidelity Coverage.

(a)                The Servicer
shall cause to be maintained for each Mortgage Loan fire insurance with extended coverage on the related Mortgaged Property in an amount which is at least equal to the least of (i) the then current principal balance of such Mortgage Loan, (ii) the amount
necessary to fully compensate for any damage or loss to the improvements that are a part of such property on a replacement cost basis and (iii) the maximum insurable value of the improvements which are a part of such Mortgaged Property, in each case in an amount
not less than such amount as is necessary to avoid the application of any coinsurance clause contained in the related hazard insurance policy.  The Servicer shall also cause to be maintained fire insurance with extended coverage on each REO Property in an amount
which is at least equal to the lesser of (i) the maximum insurable value of the improvements which are a part of such property and (ii) the outstanding principal balance of the related Mortgage Loan at the time it became an REO Property, plus accrued
interest at the Mortgage Rate and related Servicing Advances.  The Servicer will comply in the performance of this Agreement with all reasonable rules and requirements of each insurer under any such hazard policies.  Any amounts to be collected by the
Servicer under any such policies (other than amounts to be applied to the restoration or repair of the property subject to the related Mortgage or amounts to be released to the Mortgagor in accordance with the procedures that the Servicer would follow in servicing
loans held for its own account, subject to the terms and conditions of the related Mortgage and Mortgage Note) shall be deposited in the Collection Account, subject to withdrawal pursuant to Section 3.11, if received in respect of a Mortgage Loan, or in the REO
Account, subject to withdrawal pursuant to Section 3.23, if received in respect of an REO Property.  Any cost incurred by the Servicer in maintaining any such insurance shall not, for the purpose of calculating distributions to Certificateholders, be added
to the unpaid principal balance of the related Mortgage Loan, notwithstanding that the terms of such Mortgage Loan so permit.  It is understood and agreed that no earthquake or other additional insurance is to be required of any Mortgagor other than pursuant to
such applicable laws and regulations as shall at any time be in force and as shall require such additional insurance.  If the Mortgaged Property or REO Property is at any time in an area identified in the Federal Register by the Federal Emergency Management
Agency as having special flood hazards and flood insurance has been made available, the Servicer will cause to be maintained a flood insurance policy in respect thereof.  Such flood insurance shall be in an amount equal to the lesser of (i) the unpaid
principal balance of the related Mortgage Loan and (ii) the maximum amount of such insurance available for the related Mortgaged Property under the national flood insurance program (assuming that the area in which such Mortgaged Property is located is
participating in such program).

In the event that the Servicer shall obtain and maintain a blanket policy with an insurer having a General Policy Rating of A:X or better in Best’s Key Rating Guide (or such other rating
that is comparable to such rating) insuring against hazard losses on all of the Mortgage Loans, it shall conclusively be deemed to have satisfied its obligations as set forth in the first two sentences of this Section 3.14, it being understood and agreed that
such policy may contain a deductible clause, in which case the Servicer shall, in the event that there shall not have been maintained on the related Mortgaged Property or REO Property a policy complying with the first two sentences of this Section 3.14, and
there shall have been one or more losses which would have been covered by such policy, deposit to the Collection Account from its own funds the amount not otherwise payable under the blanket policy because of such deductible clause.  In connection with its
activities as administrator and servicer of the Mortgage Loans, the Servicer agrees to prepare and present, on behalf of itself, the Trustee and the Certificateholders, claims under any such blanket policy in a timely fashion in accordance with the terms of such
policy.

(b)               The Servicer shall keep
in force during the term of this Agreement a policy or policies of insurance covering errors and omissions for failure in the performance of the Servicer’s obligations under this Agreement, which policy or policies shall be in such form and amount that would
meet the requirements of Fannie Mae or Freddie Mac if it were the purchaser of the Mortgage Loans, unless the Servicer or any of its Affiliates has obtained a waiver of such Fannie Mae or Freddie Mac requirements from either Fannie Mae or Freddie Mac.  The
Servicer shall also maintain a fidelity bond in the form and amount that would meet the requirements of Fannie Mae or Freddie Mac, unless the Servicer or any of its Affiliates has obtained a waiver of such Fannie Mae or Freddie Mac requirements from either Fannie Mae
or Freddie Mac.  The Servicer shall provide the Trustee and the NIMS Insurer (upon such party’s reasonable request) with copies of any such insurance policies and fidelity bond.  The Servicer shall be deemed to have complied with this provision if an
Affiliate of the Servicer has such errors and omissions and fidelity bond coverage and, by the terms of such insurance policy or fidelity bond, the coverage afforded thereunder extends to the Servicer.  Any such errors and omissions policy and fidelity bond
shall by its terms not be cancelable without thirty days’ prior written notice to the Trustee.  The Servicer shall also cause each Sub‐Servicer to maintain a comparable policy of insurance covering errors and omissions and a fidelity bond meeting
such requirements.

Section 3.15          Enforcement of Due‐On‐Sale Clauses; Assumption Agreements

.  The Servicer shall, to the extent it has knowledge of any conveyance or prospective conveyance of any Mortgaged Property by any Mortgagor (whether by absolute conveyance or by
contract of sale, and whether or not the Mortgagor remains or is to remain liable under the Mortgage Note and/or the Mortgage), exercise its rights to accelerate the maturity of such Mortgage Loan under the “due‐on‐sale” clause, if any,
applicable thereto; provided, however, that the Servicer shall not be required to take such action if in its sole business judgment the Servicer believes that the collections and other recoveries in respect of such Mortgage Loans could reasonably be
expected to be maximized if the Mortgage Loan were not accelerated, and the Servicer shall not exercise any such rights if prohibited by law from doing so.  If the Servicer reasonably believes it is unable under applicable law to enforce such
“due‐on‐sale” clause, or if any of the other conditions set forth in the proviso to the preceding sentence apply, the Servicer will enter into an assumption and modification agreement from or with the person to whom such property has been
conveyed or is proposed to be conveyed, pursuant to which such person becomes liable under the Mortgage Note and, to the extent permitted by applicable state law, the Mortgagor remains liable thereon.  The Servicer may also enter into a substitution of liability
agreement with such person, pursuant to which the original Mortgagor is released from liability and such person is substituted as the Mortgagor and becomes liable under the Mortgage Note, provided that no such substitution shall be effective unless such person
satisfies the underwriting criteria of the Servicer and has a credit risk rating at least equal to that of the original Mortgagor.  In connection with any assumption, modification or substitution, the Servicer shall apply such underwriting standards and
follow such practices and procedures as shall be normal and usual in its general mortgage servicing activities and as it applies to other mortgage loans owned solely by it.  The Servicer shall not take or enter into any assumption and modification agreement,
however, unless (to the extent practicable under the circumstances) it shall have received confirmation, in writing, of the continued effectiveness of any applicable hazard insurance policy, or a new policy meeting the requirements of this Section is
obtained.  Any fee collected by the Servicer in respect of any assumption, modification or substitution of liability agreement will be retained by the Servicer as additional servicing compensation.  In connection with any such assumption, no material term
of the Mortgage Note (including but not limited to the related Mortgage Rate and the amount of the Monthly Payment) may be amended or modified, except as otherwise required pursuant to the terms thereof.  The Servicer shall notify the Trustee and the NIMS
Insurer that any such substitution, modification or assumption agreement has been completed by forwarding to the Trustee (with a copy to the NIMS Insurer) the executed original of such substitution, modification or assumption agreement, which document shall be added
to the related Mortgage File and shall, for all purposes, be considered a part of such Mortgage File to the same extent as all other documents and instruments constituting a part thereof. 

Notwithstanding the foregoing paragraph or any other provision of this Agreement, the Servicer shall not be deemed to be in default, breach or any other violation of its obligations hereunder
by reason of any assumption of a Mortgage Loan by operation of law or by the terms of the Mortgage Note or any assumption which the Servicer may be restricted by law from preventing, for any reason whatever.  For purposes of this Section 3.15, the term
“assumption” is deemed to also include a sale of the Mortgaged Property subject to the Mortgage that is not accompanied by an assumption or substitution of liability agreement.

Section 3.16          Realization Upon Defaulted Mortgage Loans.

(a)                The Servicer
shall use reasonable efforts consistent with the servicing standard set forth in Section 3.01, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which
no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.07.  The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings; provided, however, that such costs
and expenses will constitute and be recoverable as Servicing Advances by the Servicer as contemplated in Section 3.11 and Section 3.23.  The foregoing is subject to the provision that, in any case in which Mortgaged Property shall have suffered damage
from an Uninsured Cause, the Servicer shall not be required to expend its own funds toward the restoration of such property unless it shall determine in its sole and absolute discretion that such restoration will increase the proceeds of liquidation of the related
Mortgage Loan after reimbursement to itself for such expenses.

(b)               Notwithstanding the
foregoing provisions of this Section 3.16 or any other provision of this Agreement, with respect to any Mortgage Loan as to which the Servicer has received actual notice of, or has actual knowledge of, the presence of any toxic or hazardous substance on the
related Mortgaged Property, the Servicer shall not, on behalf of the Trustee, either (i) obtain title to such Mortgaged Property as a result of or in lieu of foreclosure or otherwise or (ii) otherwise acquire possession of, or take any other action with
respect to, such Mortgaged Property, if, as a result of any such action, the Trustee, the Trust Fund or the Certificateholders would be considered to hold title to, to be a “mortgagee‐in‐possession” of, or to be an “owner” or
“operator” of such Mortgaged Property within the meaning of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time, or any comparable law, unless the Servicer has also previously determined, based on
its reasonable judgment and a report prepared by an Independent Person who regularly conducts environmental audits using customary industry standards, that:

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

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

Notwithstanding the foregoing, with respect to the Mortgage Loans, if such environmental audit reveals, or if the Servicer has knowledge or notice, that the Mortgaged Property securing the
Mortgage Loan contains such wastes or substances or is within one mile of the site of such wastes or substances, the Servicer shall not foreclose or accept a deed in lieu of foreclosure without the prior written consent of the NIMS Insurer.

The cost of the environmental audit report contemplated by this Section 3.16 shall be advanced by the Servicer, subject to the Servicer’s right to be reimbursed therefor from the
Collection Account as provided in Section 3.11(a)(ix), such right of reimbursement being prior to the rights of Certificateholders to receive any amount in the Collection Account received in respect of the affected Mortgage Loan or other Mortgage Loans.  It
is understood by the parties hereto that any such advance will constitute a Servicing Advance.

If the Servicer determines, as described above, that it is in the best economic interest of the Trust Fund to take such actions as are necessary to bring any such Mortgaged Property into
compliance with applicable environmental laws, or to take such action with respect to the containment, clean‐up or remediation of hazardous substances, hazardous materials, hazardous wastes or petroleum‐based materials affecting any such Mortgaged
Property, then the Servicer shall take such action as it deems to be in the best economic interest of the Trust Fund.  The cost of any such compliance, containment, cleanup or remediation shall be advanced by the Servicer, subject to the Servicer’s right
to be reimbursed therefor from the Collection Account as provided in Section 3.11(a)(ix), such right of reimbursement being prior to the rights of Certificateholders to receive any amount in the Collection Account received in respect of the affected Mortgage
Loan or other Mortgage Loans.  It is understood by the parties hereto that any such advance will constitute a Servicing Advance.

(c)                The Holder of the
Class C Certificates (except if such Holder is the Seller or any of its Affiliates) may at its option purchase from REMIC I any Mortgage Loan or related REO Property that is 90 days or more delinquent or that has been otherwise in default for 90 days or more, which
such Holder determines in good faith will otherwise become subject to foreclosure proceedings (evidence of such determination to be delivered in writing to the Trustee prior to purchase), at a price equal to the Purchase Price; provided, however, that
the Holder of the Class C Certificates shall purchase any such Mortgage Loans or related REO Properties on the basis of delinquency or default, purchasing first the Mortgage Loans or related REO Properties that became delinquent or otherwise in default on an earlier
date.  For the avoidance of doubt, the Holder of the Class C Certificates in exercising its right to purchase Mortgage Loans pursuant to this Section 3.16(c) shall not be subject to any requirement of this Article III (other than the requirements of this Section
3.16(c)).  In the event the Holder of the Class C Certificates does not exercise its option to purchase from REMIC I any such Mortgage Loan or related REO Property prior to the expiration of such option, the NIMS Insurer shall be entitled to purchase such
Mortgage Loan or related REO Property; provided, however, that the NIM Insurer shall purchase any such Mortgage Loans or related REO Properties on the basis of delinquency or default, purchasing first the Mortgage Loans or related REO Properties that
became delinquent or otherwise in default on an earlier date.  The Purchase Price for any Mortgage Loan or related REO Property purchased hereunder shall be deposited in the Collection Account, and the Trustee, upon receipt of written certification from the
Servicer of such deposit, shall release or cause to be released to the Holder of the Class C Certificates or the NIMS Insurer, as applicable, the related Mortgage File and the Trustee shall execute and deliver such instruments of transfer or assignment, in each
case without recourse, as the Holder of the Class C Certificates or the NIMS Insurer, as applicable, shall furnish and as shall be necessary to vest in the Holder of the Class C Certificates or the NIMS Insurer, as applicable, title to any Mortgage Loan or
related REO Property released pursuant hereto.  For so long as the indenture trustee under the Indenture is the Holder of the Class C Certificate, the holder (the “Residual NIM Holder”) of the subordinate note, the owner trust certificate or
another instrument representing the right to receive the proceeds of the trust estate securing payments on the NIM Notes after all of the NIM Notes have been paid off shall be deemed to be the “Holder of the Class C Certificates” for purposes of this
Section 3.16(c).  The Trustee shall request from the Residual NIM Holder a certificate substantially in the form of Exhibit F attached hereto.  The Trustee may conclusively rely upon and shall be fully protected in acting or refraining from acting based on
such certificate.

(d)               Proceeds received
(other than any Prepayment Charges received) in connection with any Final Recovery Determination, as well as any recovery resulting from a partial collection of Insurance Proceeds, Liquidation Proceeds or Gross Subsequent Recoveries, in respect of any Mortgage Loan,
will be applied in the following order of priority:  first, to reimburse the Servicer or any Sub‐Servicer for any related unreimbursed Servicing Advances and Advances, pursuant to Section 3.11(a)(ii) or (a)(iii); second, to accrued and
unpaid interest on the Mortgage Loan, to the date of the Final Recovery Determination, or to the Due Date prior to the Distribution Date on which such amounts are to be distributed if not in connection with a Final Recovery Determination; and third, as a
recovery of principal of the Mortgage Loan.  If the amount of the recovery so allocated to interest is less than the full amount of accrued and unpaid interest due on such Mortgage Loan, the amount of such recovery will be allocated by the Servicer as
follows:  first, to unpaid Servicing Fees; and second, to the balance of the interest then due and owing.  The portion of the recovery so allocated to unpaid Servicing Fees shall be reimbursed to the Servicer or any Sub‐Servicer pursuant
to Section 3.11(a)(iii).

(e)                The Servicer may
(but is not obligated to) enter into a special servicing agreement with an unaffiliated holder of a 100% Percentage Interest of the most junior Class of the Mezzanine Certificates, subject to each Rating Agency's acknowledgment that the ratings of the Class A
Certificates, the Mezzanine Certificates and the Other NIM Notes and the initial shadow rating to the Insured NIM Notes, without giving effect to any insurance policy issued by the NIMS Insurer, in each case, in effect immediately prior to the entering into such
agreement would not be qualified, downgraded or withdrawn and none of the Class A Certificates, the Mezzanine Certificates or the NIM Notes would be placed on credit review status (except for possible upgrading) as a result of such agreement.  Any such agreement
may contain provisions whereby such Holder may (i) instruct the Servicer to commence or delay foreclosure proceedings with respect to delinquent Mortgage Loans and will contain provisions for the deposit of cash with the Servicer by the Holder that would be available
for distribution to Certificateholders if Liquidation Proceeds are less than they otherwise may have been had the Servicer acted in accordance with its normal procedures, (ii) purchase delinquent Mortgage Loans from the Trust Fund immediately prior to the
commencement of foreclosure proceedings at a price equal to the Purchase Price, and/or (iii) assume all of the servicing rights and obligations with respect to delinquent Mortgage Loans so long as such Holder (A) meets the requirements for a Sub-Servicer set forth in
Section 3.02(a), (B) will service such Mortgage Loans in accordance with this Agreement and (C) the Servicer has the right to transfer such servicing rights without the payment of any compensation to a subservicer.

Section 3.17          Trustee to Cooperate; Release of Mortgage Files.

(a)                Upon the Payoff
or scheduled maturity of any Mortgage Loan, the Servicer shall cause such final payment to be deposited within 48 hours in the related Collection Account.  The Servicer shall promptly notify the Trustee thereof by a certification (which certification shall
include a statement to the effect that all amounts received in connection with such payment which are required to be deposited in such account have been so deposited) of a Servicing Officer and shall request delivery to it of the Mortgage File; provided,
however, that such certification shall not be required if the Mortgage File is held by a Custodian which is also the Servicer of the Mortgage Loan. Upon receipt of such certification and request, the Trustee shall (or, if applicable, shall cause the Custodian in
accordance with the Custodial Agreement to), not later than the fifth succeeding Business Day, release, or cause to be released, the related Mortgage File to the Servicer. With any such Payoff or other final payment, the Servicer is authorized (i) to prepare for and
procure from the trustee or mortgagee under the Mortgage which secured the Mortgage Note a deed of full reconveyance or other form of satisfaction or assignment of Mortgage and endorsement of Mortgage Note in connection with a refinancing covering the Mortgaged
Property, which satisfaction, endorsed Mortgage Note or assigning document shall be delivered by the Servicer to the person or persons entitled thereto, and (ii) with respect to any MERS Loan, to cause the removal of such Mortgage Loan from registration on the
MERS® System. No expenses incurred in connection with such satisfaction or assignment shall be payable to the Servicer by the Trustee or from the Distribution Account, the related Investment Account or the related Collection Account. From time to time as
appropriate for the servicing or foreclosure of any Mortgage Loan, the Trustee shall (or, if applicable, shall cause the Custodian in accordance with the Custodial Agreement to), upon request of the Servicer and delivery to it of a trust receipt signed by a Servicing
Officer, release not later than the fifth Business Day following the date of receipt of such request and trust receipt the related Mortgage File to the Servicer and shall execute such documents as shall be necessary to the prosecution of any such proceedings. Such
trust receipt shall obligate the Servicer to return the Mortgage File to the Trustee (or, if applicable, the Custodian) when the need therefor by the Servicer no longer exists, unless the Mortgage Loan shall be liquidated, in which case, upon receipt of a certificate
of a Servicing Officer similar to that herein above specified, the trust receipt shall be released by the Trustee to the Servicer.

(b)               If any Mortgage Loan is repurchased,
substituted or purchased in accordance with Section 2.08, Section 3.16(c) or Section 9.01, the Trustee shall execute and deliver the Mortgage Loan Assignment Agreement in the form of Exhibit G with respect to such Mortgage Loan, transferring such Mortgage Loan to the
Person entitled thereto pursuant to such Section 2.08, Section 3.16(c) or Section 9.01, as applicable.

Section 3.18          Servicing Compensation

.  As compensation for the activities of the Servicer hereunder, the Servicer shall be entitled to the Servicing Fee with respect to each Mortgage Loan payable solely from
payments of interest in respect of such Mortgage Loan, subject to Section 3.24.  In addition, the Servicer shall be entitled to recover unpaid Servicing Fees out of Late Collections, Insurance Proceeds, Liquidation Proceeds or Gross Subsequent Recoveries to
the extent permitted by Section 3.11(a)(iii) and out of amounts derived from the operation and sale of an REO Property to the extent permitted by Section 3.23.  The right to receive the Servicing Fee may not be transferred in whole or in part except in
connection with the transfer of all of the Servicer’s responsibilities and obligations under this Agreement; provided, however, that the Servicer may pay from the Servicing Fee any amounts due to a Sub‐Servicer pursuant to a
Sub‐Servicing Agreement entered into under Section 3.02.

Additional servicing compensation in the form of Prepayment Interest Excess, assumption or modification fees, late payment charges, NSF fees (other than Prepayment Charges), reconveyance fees
and other similar fees and charges shall be retained by the Servicer only to the extent such fees or charges are received by the Servicer.  The Servicer shall also be entitled pursuant to Section 3.11(a)(iv) to withdraw from the Collection Account, and
pursuant to Section 3.23(b) to withdraw from any REO Account, as additional servicing compensation, interest or other income earned on deposits therein, subject to Section 3.12.  The Servicer shall be required to pay all expenses incurred by it in
connection with its servicing activities hereunder (including premiums for the insurance required by Section 3.14, to the extent such premiums are not paid by the related Mortgagors or by a Sub‐Servicer, it being understood however, that payment of such
premiums by the Servicer shall constitute Servicing Advances and servicing compensation of each Sub‐Servicer, and to the extent provided herein and in Section 8.05, the fees of the Trustee) and shall not be entitled to reimbursement therefor except as
specifically provided herein.

Section 3.19          Reports to the Trustee; Collection Account Statements

.  Not later than fifteen days after each Distribution Date, the Servicer shall forward to the Trustee, the NIMS Insurer and the Company a statement prepared by the Servicer
setting forth the status of the Collection Account as of the close of business on such Distribution Date and showing, for the period covered by such statement, the aggregate amount of deposits into and withdrawals from the Collection Account of each category of
deposit specified in Section 3.10(a) and each category of withdrawal specified in Section 3.11.  Such statement may be in the form of the then current Fannie Mae Monthly Accounting Report for its Guaranteed Mortgage Pass‐Through Program with
appropriate additions and changes, and shall also include information as to the aggregate of the outstanding principal balances of all of the Mortgage Loans as of the last day of the calendar month immediately preceding such Distribution Date.  Copies of such
statement shall be provided by the Trustee to any Certificateholder and to any Person identified to the Trustee as a prospective transferee of a Certificate, upon request at the expense of the requesting party, provided such statement is delivered by the
Servicer to the Trustee.

Section 3.20          Reports
on Assessment of Compliance with Servicing Criteria and Servicing Compliance Statements

. The Servicer shall, on or before the 90th day following each December 31 after the Cut-off Date, deliver to the Company and the Trustee, and, if required, file with the Commission as an
exhibit to a Report on Form 10-K filed on behalf of the Trust, the following documents:

(a)        a report on its assessment of compliance during the preceding calendar year with all applicable servicing criteria set forth in Item 1122(d) of
Regulation AB with respect to asset-backed securities transactions taken as a whole involving the Servicer that are backed by assets of the same type as the Mortgage Loans, as required by Item 1122 of Regulation AB;

(b)        with respect to the assessment report described in clause (a) above, a report by a registered public accounting firm that attests to, and reports
on, the assessment made by the Servicer, as required by Item 1122 of Regulation AB;

(c)        with respect to each subservicer or other agent or independent contractor through which the Servicer performs any of its servicing
responsibilities hereunder and, cause the Trustee to deliver with respect to each Custodian, in each case, if determined by the Servicer to be a party participating in the servicing function within the meaning of Item 1122 of Regulation AB, (i) a report prepared by
such party on its assessment of compliance during the preceding calendar year with all applicable servicing criteria set forth in Item 1122(d) of Regulation AB with respect to asset-backed securities transactions taken as a whole involving such party that are backed
by assets of the same type as the Mortgage Loans and (ii) a report by a registered public accounting firm that attests to, and reports on, such assessment, each as required by Item 1122 of Regulation AB;

(d)        the assessment report and public accounting firm’s attestation report delivered by the Trustee under Section 8.18 (if required to be
delivered by the Trustee under such Section 8.18); and

(e)        a statement of compliance from the Servicer, and a similar statement from each subservicer or other agent or independent contractor through which
the Servicer performs any of its servicing responsibilities hereunder and, cause the Trustee to deliver such statement from each Custodian, in each case, if determined by the Servicer to meet the criteria in Item 1108(a)(2)(i) through (iii) of Regulation AB, as
required by Item 1123 of Regulation AB, signed by an authorized officer, to the effect that:

(i)         a review of the Servicer’s (or, in the case of a statement from any such other party, such other
party’s) activities during the preceding calendar year (or the applicable portion thereof in the case of the initial statement) and of its performance under this Agreement (or the servicing agreement applicable to such other party) has been made under such
officer’s supervision; and

(ii)        to the best of such officer’s knowledge, based on such review, the Servicer (or such other party) has fulfilled
all of its obligations under this Agreement (or the servicing agreement applicable to such other party) in all material respects throughout the preceding calendar year (or the applicable portion thereof) or, if there has been a failure to fulfill any such obligation
in any material respect, specifying each such failure known to such officer and the nature and status thereof;

provided, however, that the Servicer shall not be required to deliver the documents described in clauses (c) and (d), and in clause (e) with respect to
any subservicer or other agent or independent contractor, or any Custodian, if such reports are not required to be filed with the Commission as an exhibit to a Report on Form 10-K.

Copies of such reports and statements shall be provided by the Servicer, or by the Trustee (solely to the extent that such copies are available to the Trustee) at the expense of the Servicer,
to Certificateholders upon request.

Section 3.21          Access to
Certain Documentation and Information Regarding the Mortgage Loans

. In the event that the Certificates are legal for investment by federally-insured savings associations, the Servicer shall provide to the OTS, the FDIC and the supervisory agents and
examiners of the OTS and the FDIC access to the documentation regarding the related Mortgage Loans required by applicable regulations of the OTS or the FDIC, as applicable, and shall in any event provide such access to the documentation regarding such Mortgage Loans
to the Trustee and its representatives, such access being afforded without charge, but only upon reasonable request and during normal business hours at the offices of the Servicer designated by it.

Section 3.22          Reserve Fund

.  No later than the Closing Date, the Trustee, on behalf of the Certificateholders, shall establish and maintain with itself a separate, segregated non-interest bearing trust
account titled, “Reserve Fund, LaSalle Bank National Association, as Trustee, in trust for holders of Washington Mutual Asset-Backed Certificates WMABS, Series 2006‐HE1.”  The Trustee shall account for the right to receive payments from the
Reserve Fund as property that the Trustee holds separate and apart from the REMIC Regular Interests.

(a)                The following
amounts shall be deposited into the Reserve Fund:

(i)                  On the Closing Date, the Company shall deposit, or
cause to be deposited, into the Reserve Fund $1,000;

(ii)                On each Distribution Date as to which there is a Net WAC Rate
Carryover Amount payable to any of the Class A Certificates or the Mezzanine Certificates, the Trustee has been directed by the Holders of the Class C Certificates to, and therefore shall, deposit into the Reserve Fund the amounts described in Section 4.05; and

(iii)               On each Distribution Date as to which there are no Net WAC Rate
Carryover Amounts, the Trustee shall deposit into the Reserve Fund on behalf of the Holders of the Class C Certificates, from amounts otherwise distributable to such Class C Certificates, an amount such that when added to other amounts already on deposit in the
Reserve Fund, the aggregate amount on deposit therein is equal to $1,000. 

(b)               The Reserve Fund shall
be treated as an “outside reserve fund” under applicable Treasury regulations and shall not be part of any REMIC created hereunder.  For federal and state income tax purposes, the Holders of the Class C Certificates shall be deemed to be the owners
of the Reserve Fund and all amounts deposited into the Reserve Fund (other than the initial deposit therein of $1,000) shall be treated as amounts distributed by REMIC III to REMIC IV in respect of the Class C Interest, and then distributed by REMIC IV to
the Holders of the Class C Certificates.  For federal and state income tax purposes, payments in respect of the Class A Certificates and the Mezzanine Certificates of Net WAC Rate Carryover Amounts will not be payments with respect to a “regular
interest” in a REMIC within the meaning of Code Section 860G(a)(1).

(c)                By accepting a
Class C Certificate, each Holder of a Class C Certificate shall be deemed to have directed the Trustee to, and the Trustee shall pursuant to such direction, deposit into the Reserve Fund the amounts described in Section 3.22(a)(ii) and (a)(iii) above on each
Distribution Date.  By accepting a Class C Certificate, each Holder of a Class C Certificate further agrees that such direction is given for good and valuable consideration, the receipt and sufficiency of which is acknowledged by such acceptance.

(d)               At the direction of the
Holders of a majority in Percentage Interest in the Class C Certificates, the Trustee shall direct any depository institution maintaining the Reserve Fund to invest the funds in such account in one or more Eligible Investments bearing interest or sold at a discount,
and maturing, unless payable on demand, (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from such account pursuant to this Agreement, if a Person other than the Trustee or an Affiliate manages or
advises such investment, and (ii) no later than the date on which such funds are required to be withdrawn from such account pursuant to this Agreement, if the Trustee or an Affiliate manages or advises such investment.  If no investment direction of the
Holders of a majority in Percentage Interest in the Class C Certificates with respect to the Reserve Fund is received by the Trustee, the Trustee shall invest the funds in the Reserve Fund in Eligible Investments managed by the Trustee or an Affiliate of the kind
described in clauses (iii) or (vii) of the definition of Eligible Investments.  All income and gain earned upon such investment shall be deposited into the Reserve Fund. 

(e)                For federal tax
return and information reporting, the right of the Certificateholders to receive payment on account of the Class A Certificates and the Mezzanine Certificates from the Reserve Fund in respect of any Net WAC Rate Carryover Amount shall be assigned a value of
zero.

Section 3.23          Title, Management and Disposition of REO Property.

(a)                The deed or
certificate of sale of any REO Property shall be taken in the name of the Trustee, or its nominee, in trust for the benefit of the Certificateholders.  The Servicer, on behalf of REMIC I (and on behalf of the Trustee for the benefit of the Certificateholders),
shall sell any REO Property as soon as practicable and, in any event, shall either sell any REO Property before the close of the third taxable year after the year REMIC I acquires ownership of such REO Property for purposes of Section 860G(a)(8) of the Code or
request from the Internal Revenue Service, no later than 60 days before the day on which the three‐year grace period would otherwise expire, an extension of the three‐year grace period, unless the Servicer shall have delivered to the Trustee, the NIMS
Insurer and the Company an Opinion of Counsel, addressed to the Trustee, the NIMS Insurer and the Company, to the effect that the holding by REMIC I of such REO Property subsequent to three years after its acquisition will not result in the imposition on any Trust
REMIC of taxes on “prohibited transactions” thereof, as defined in Section 860F of the Code, or cause any Trust REMIC to fail to qualify as a REMIC under Federal law at any time that any Certificates are outstanding.  If an extension of the
three‐year period is granted, the Servicer shall sell the related REO Property no later than 60 days prior to the expiration of such extension period.  The Servicer shall manage, conserve, protect and operate each REO Property for the Certificateholders
solely for the purpose of its prompt disposition and sale in a manner which does not cause such REO Property to fail to qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of the Code or result in the receipt by any Trust REMIC
of any “income from non‐permitted assets” within the meaning of Section 860F(a)(2)(B) of the Code, or any “net income from foreclosure property” which is subject to taxation under the REMIC Provisions.

(b)               The Servicer shall
segregate and hold all funds collected and received in connection with the operation of any REO Property separate and apart from its own funds and general assets and shall establish and maintain, or cause to be established and maintained, with respect to REO
Properties an account held in trust for the Trustee for the benefit of the Certificateholders (the “REO Account”), which shall be with an Eligible Institution.  The Servicer may allow the Collection Account to serve as the REO Account, subject
to separate ledgers for each REO Property.  The Servicer may retain or withdraw any interest income paid on funds deposited in the REO Account.

(c)                The Servicer
shall have full power and authority, subject only to the specific requirements and prohibitions of this Agreement, to do any and all things in connection with any REO Property as are consistent with the manner in which the Servicer manages and operates similar
property owned by the Servicer or any of its Affiliates, all on such terms and for such period as the Servicer deems to be in the best interests of Certificateholders.  In connection therewith,the Servicer shall deposit, or cause to be deposited in the clearing
account (which account must be with an Eligible Institution) in which it customarily deposits payments and collections on mortgage loans in connection with its mortgage loan servicing activities on a daily basis, and in no event more than one Business Day after the
Servicer’s receipt thereof and shall thereafter deposit in the REO Account, in no event more than two Business Days after the deposit of such funds into the clearing account, all revenues received by it with respect to an REO Property and shall withdraw
therefrom funds necessary for the proper operation, management and maintenance of such REO Property including, without limitation:

(i)                  all insurance premiums due and payable in respect of
such REO Property;

(ii)                all real estate taxes and assessments in respect of such REO
Property that may result in the imposition of a lien thereon; and

(iii)               all costs and expenses necessary to maintain such REO Property.

To the extent that amounts on deposit in the REO Account with respect to an REO Property are insufficient for the purposes set forth in clauses (i) through (iii) above with respect
to such REO Property, the Servicer shall advance from its own funds as Servicing Advances such amount as is necessary for such purposes if, but only if, the Servicer would make such advances if the Servicer owned the REO Property and if such Servicing Advance would
not constitute a Nonrecoverable Advance.

Notwithstanding the foregoing, neither the Servicer nor the Trustee shall:

(i)                  authorize the Trust Fund to enter into, renew or
extend any New Lease with respect to any REO Property, if the New Lease by its terms will give rise to any income that does not constitute Rents from Real Property;

(ii)                authorize any amount to be received or accrued under any New
Lease other than amounts that will constitute Rents from Real Property;

(iii)               authorize any construction on any REO Property, other than
construction permitted under Section 856(e)(4)(B) of the Code; or

(iv)              authorize any Person to Directly Operate any REO Property on any date more
than 90 days after its date of acquisition by the Trust Fund;

unless, in any such case, the Servicer has obtained an Opinion of Counsel (the cost of which shall constitute a Servicing Advance), a copy of which shall be provided to
the NIMS Insurer and the Trustee, to the effect that such action will not cause such REO Property to fail to qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of the Code at any time that it is held by REMIC I, in which case
the Servicer may take such actions as are specified in such Opinion of Counsel.

The Servicer may contract with any Independent Contractor for the operation and management of any REO Property, provided that:

(i)                  the terms and conditions of any such contract shall
not be inconsistent herewith;

(ii)                any such contract shall require, or shall be administered to
require, that the Independent Contractor pay all costs and expenses incurred in connection with the operation and management of such REO Property, including those listed above, and remit all related revenues (net of such costs and expenses) to the Servicer as soon as
practicable, but in no event later than thirty days following the receipt thereof by such Independent Contractor;

(iii)               none of the provisions of this Section 3.23(c) relating to any
such contract or to actions taken through any such Independent Contractor shall be deemed to relieve the Servicer of any of its duties and obligations to the Trustee on behalf of the Certificateholders with respect to the operation and management of any such REO
Property; and

(iv)              the Servicer shall be obligated with respect thereto to the same extent as
if it alone were performing all duties and obligations in connection with the operation and management of such REO Property.

The Servicer shall be entitled to enter into any agreement with any Independent Contractor performing services for it related to its duties and obligations hereunder for indemnification of the
Servicer by such Independent Contractor, and nothing in this Agreement shall be deemed to limit or modify such indemnification.  The Servicer shall be solely liable for all fees owed by it to any such Independent Contractor, irrespective of whether the
Servicer’s compensation pursuant to Section 3.18 is sufficient to pay such fees; provided, however, that to the extent that any payments made by such Independent Contractor would constitute Servicing Advances if made by the Servicer, such
amounts shall be reimbursable as Servicing Advances made by the Servicer.

(d)               In addition to the
withdrawals permitted under Section 3.23(c), the Servicer may from time to time make withdrawals from the REO Account for any REO Property:  (i) to pay itself or any Sub‐Servicer unpaid Servicing Fees in respect of the related Mortgage Loan; and
(ii) to reimburse itself or any Sub‐Servicer for unreimbursed Servicing Advances and Advances made in respect of such REO Property or the related Mortgage Loan.  On the Servicer Remittance Date, the Servicer shall withdraw from each REO Account
maintained by it and deposit into the Distribution Account in accordance with Section 3.10(d)(ii), for distribution on the related Distribution Date in accordance with Article IV, the income from the related REO Property received during the prior calendar month,
net of any withdrawals made pursuant to Section 3.23(c) or this Section 3.23(d).

(e)                Subject to the
time constraints set forth in Section 3.23(a), each REO Disposition shall be carried out by the Servicer at such price and upon such terms and conditions as the Servicer shall deem necessary or advisable, as shall be normal and usual in its general servicing
activities for similar properties.

(f)                 The
proceeds from the REO Disposition, net of any amount required by law to be remitted to the Mortgagor under the related Mortgage Loan and net of any payment or reimbursement to the Servicer or any Sub‐Servicer as provided above, shall be deposited in the
Distribution Account in accordance with Section 3.10(d)(ii) on the Servicer Remittance Date in the month following the receipt thereof for distribution on the related Distribution Date in accordance with Article IV.  Any REO Disposition shall be for cash
only (unless changes in the REMIC Provisions made subsequent to the Startup Day allow a sale for other consideration).

(g)                The Servicer
shall file information returns with respect to the receipt of mortgage interest received in a trade or business, reports of foreclosures and abandonments of any Mortgaged Property and cancellation of indebtedness income with respect to any Mortgaged Property as
required by Sections 6050H, 6050J and 6050P of the Code, respectively.  Such reports shall be in form and substance sufficient to meet the reporting requirements imposed by such Sections 6050H, 6050J and 6050P of the Code.

Section 3.24          Obligations of the Servicer in Respect of Prepayment Interest Shortfalls

.  The Servicer shall deliver to the Trustee for deposit into the Distribution Account on or before 3:00 p.m. New York time on the Servicer Remittance Date from its own funds an
amount (“Compensating Interest”) equal to the lesser of (i) the aggregate of the Prepayment Interest Shortfalls for the related Distribution Date resulting solely from Principal Prepayments during the related Prepayment Period and
(ii) the amount of its aggregate Servicing Fee for the most recently ended calendar month.

Section 3.25          Obligations of the Servicer in Respect of Mortgage Rates and Monthly Payments

.  In the event that a shortfall in any collection on or liability with respect to any Mortgage Loan results from or is attributable to adjustments to Mortgage Rates, Monthly
Payments or Stated Principal Balances that were made by the Servicer in a manner not consistent with the terms of the related Mortgage Note and this Agreement, the Servicer, upon discovery or receipt of notice thereof, immediately shall deliver to the Trustee for
deposit in the Distribution Account from its own funds the amount of any such shortfall and shall indemnify and hold harmless the Trust Fund, the Trustee, the Company and any successor servicer in respect of any such liability.  Such indemnities shall survive
the termination or discharge of this Agreement.  Notwithstanding the foregoing, this Section 3.25 shall not limit the ability of the Servicer to seek recovery of any such amounts from the related Mortgagor under the terms of the related Mortgage Note, as
permitted by law and shall not be an expense of the Trust.

Section 3.26          [Reserved].

Section 3.27          Swap Agreement

.  The Company hereby directs the Supplemental Interest Trust Trustee to execute and deliver on behalf of the Supplemental Interest Trust the Swap Agreement in the form presented
to it by the Company and authorizes the Supplemental Interest Trust Trustee to perform on behalf of the Supplemental Interest Trust the obligations of the Supplemental Interest Trust thereunder on behalf of the Supplemental Interest Trust in accordance with the terms
of the Swap Agreement.  The Company hereby authorizes and directs the Supplemental Interest Trust Trustee to ratify on behalf of the Supplemental Interest Trust, as the Supplemental Interest Trust’s own actions, the terms agreed to by the Company (or any
of its Affiliates) in relation to the Swap Agreement, as reflected in the Swap Agreement, and the Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust hereby so ratifies the Swap Agreement.  The Supplemental Interest Trust Trustee
shall amend the Swap Agreement in accordance with its terms and as requested by a party to the Swap Agreement to cure any ambiguity in or correct or supplement any provision of the Swap Agreement, provided, however, that the Supplemental Interest Trust
Trustee shall have received a prior written confirmation from each Rating Agency that such amendment would not cause such Rating Agency to downgrade or withdraw the then current ratings of any outstanding Class A Certificates or Mezzanine Certificates.  On the
Closing Date, the Supplemental Interest Trust Trustee shall enter into the Swap Agreement, on behalf of the Supplemental Interest Trust, with the Swap Counterparty. The Swap Agreement shall be part of the Trust Fund but not part of any REMIC. The Swap Counterparty is
the calculation agent under the Swap Agreement and shall calculate all amounts pursuant to the Swap Agreement and notify the Supplemental Interest Trust Trustee of all such amounts.

Section 3.28          Replacement Swap Agreement.

(a)                The Supplemental Interest Trust Trustee
shall, at the direction of the NIMS Insurer or, with the consent of the NIMS Insurer, at the direction of the Company, in the event the Swap Agreement is terminated as a result of the designation by either party thereto of an Early Termination Date, enter into a
replacement swap agreement with a replacement counterparty designated by the Company or the NIMS Insurer, as applicable.

(b)               Notwithstanding anything to the contrary
herein, any Swap Termination Payment received by the Supplemental Interest Trust Trustee shall be deposited in the Supplemental Interest Account and shall be used to make any upfront payment required under a replacement swap agreement and any upfront payment (the
"Replacement Payment") received by the Supplemental Interest Trust from the counterparty to a replacement swap agreement shall be used to pay any Swap Termination Payment owed to the Swap Counterparty that is being replaced.  The Swap Counterparty that is being
replaced shall have first priority as to such Replacement Payments versus all other creditors of the Supplemental Interest Trust, and the Supplemental Interest Trustee on behalf of the Supplemental Interest Trust shall pay from the Replacement Payments received the
lesser of (x) the Replacement Payments so received and (y) any Swap Termination Payment owed to the Swap Counterparty (to the extent not already paid by the Supplemental Interest Trust) that is being replaced immediately upon receipt.

(c)                Notwithstanding anything contained
herein, in the event that a replacement swap agreement cannot be obtained within 30 days after receipt by the Supplemental Interest Trust Trustee of the Swap Termination Payment paid by the terminated Swap Counterparty, the Supplemental Interest Trust Trustee shall
on each Distribution Date, withdraw from the Supplemental Interest Account, an amount equal to the Net Counterparty Payment, if any, that would have been paid to the Supplemental Interest Trust by the original Swap Counterparty (computed in accordance with the terms
of the original Swap Agreement) and distribute such amount in accordance with Section 4.05(f)(ii) of this Agreement.

(d)               If a downgrade event (described in Part 5(b) of
Schedule to the Swap Agreement) occurs, the Supplemental Interest Trust Trustee shall, promptly after a Responsible Officer of the Supplemental Interest Trust Trustee has received actual knowledge or written notice of the reduction or withdrawal of the rating (it
being understood that the Supplemental Interest Trust Trustee has no duty to monitor the ratings of the Swap Counterparty), request the Swap Counterparty to take actions required to be taken by the Swap Counterparty by Part 5(b) of Schedule to the Swap
Agreement.

Section 3.29          Assigned Prepayment Charges.

(a)        Notwithstanding anything in this Agreement to the contrary, the Servicer may not waive any Prepayment Charges or portion
thereof unless such waiver is related to a default or a reasonably foreseeable default and would maximize recovery of total proceeds taking into account the value of such Prepayment Charge and related Mortgage Loan and doing so is standard and customary in servicing
mortgage loans similar to the Mortgage Loans (including any waiver of a Prepayment Charge in connection with a refinancing of a Mortgage Loan that is related to a default or a reasonably foreseeable default).  Notwithstanding the foregoing, the Servicer may
waive any Prepayment Charge or part of a Prepayment Charge in any instance when the mortgage debt is accelerated as a result of the Mortgagor’s default in making the Mortgage Loan payments required by the terms of the related Mortgage Note.  The Servicer
may also waive any prepayment charges or premiums due in connection with a partial prepayment of a Mortgage Loan.

(b)        If the Servicer has waived all or a portion of a Prepayment Charge in compliance with Section 3.29(a), then the Class P
Certificates shall not be entitled to the amounts waived.

(c)        Upon discovery by the Servicer, the Company or the Trustee (in the case of the Trustee, having actual knowledge
thereof) of a breach of the provisions of Section 3.29(a), which materially and adversely affects the Holders of the Class P Certificates, the party discovering such breach shall give prompt written notice to the other parties and the NIMS Insurer.  Within 60
days of the earlier of discovery by the Servicer, the Company or the Trustee, as applicable, of such breach, the Servicer shall cure such breach in all material respects or, if the breach cannot be cured, shall deposit, or cause to be deposited, to the Collection
Account the amount of each impermissibly waived Prepayment Charge (less any amount collected from the Mortgagor in respect to such Prepayment Charge); provided, however, that the Servicer shall not be obligated to deposit the amount of any impermissibly
waived Prepayment Charge if the failure to collect such amount is the direct result of inaccurate or incomplete information related to the Prepayment Charge in effect at such time.  Payments by the Servicer into the Collection Account pursuant to this paragraph
shall be made on the later of (i) the Servicer Remittance Date next following the earlier of discovery by the Servicer or receipt of notice by the Servicer of the breach of the related representation, warranty or covenant of the Servicer set forth in Section 3.29(a)
which materially and adversely affects the interests of the Holders of the Class P Certificates to any Prepayment Charge and (ii) the Servicer Remittance Date next following the Prepayment Period in which such breach occurred.

Upon discovery by the Servicer, the Company or the Trustee (in the case of the Trustee, having actual knowledge thereof) of a breach by the Seller of any of the representations and warranties
identified in Section 3.3(c) of the Mortgage Loan Purchase Agreement, which materially and adversely affects the Holders of the Class P Certificates, the party discovering such breach shall give prompt written notice to the other parties and the NIMS Insurer. 
The Servicer shall promptly notify the Seller of such breach and take appropriate steps on behalf of the Trust to enforce the Seller’s obligation, pursuant to Section 3.3(c) of the Mortgage Loan Purchase Agreement, to pay to the Trust the amount of each
Prepayment Charge that would have been collected had each such representation and warranty referred to in this paragraph been true (less any amount collected from the related Mortgagor with respect to such Prepayment Charge). The Servicer shall deposit, or cause to
be deposited, to the Collection Account within two Business Days of receipt the amounts so received from the Seller.

ARTICLE IV

Flow of Funds

Section 4.01          Distributions to Holders of REMIC I Regular Interests and Class R-1 Residual Interest.  

On each Distribution Date, the Trustee (or any duly appointed paying agent) on behalf of the Trust (i) shall be deemed to have distributed from the Distribution
Account the REMIC I Distribution Amount to the Holders of the REMIC I Regular Interests, and to have deposited such amounts for their benefit into the Distribution Account and (ii) from the Distribution Account shall distribute to the Class R Certificateholders, in
accordance with the written statement received from the Servicer pursuant to Section 4.02(b), the amounts to be distributed to the Holders of the Class R-1 Residual Interest pursuant to the definition of “REMIC I Distribution Amount” for such Distribution
Date.  Amounts distributed pursuant to clause (ii) above shall be distributed by wire transfer in immediately REMIC I Available Distribution Amount for the account of each Class R Certificateholder, or by any other means of payment acceptable to each Class R
Certificateholder of record on the immediately preceding Record Date (other than as provided in Section 9.01 respecting the final distribution), as specified by each such Certificateholder and at the address of such Holder appearing in the Certificate Register. 
Notwithstanding any other provision of this Agreement, no actual distributions pursuant to clause (i) of this Section 4.01 shall be made on account of the deemed distributions described in this paragraph except in the event of a liquidation of REMIC VI, REMIC V,
REMIC IV, REMIC III and REMIC II and not REMIC I.

Section 4.02          Advances; Remittance Reports.

(a)                On or before the
18th day of each calendar month commencing in May 2006, or if such 18th day is not a Business Day, the Business Day immediately following such 18th day, but in no event later than such date which would allow the Trustee to submit a claim to the NIMS Insurer under the
Indenture, the Servicer shall deliver to the NIMS Insurer and the Trustee by telecopy or electronic mail (or by such other means as the Servicer, the NIMS Insurer and the Trustee, as the case may be, may agree from time to time) a Remittance Report with respect to
the related Distribution Date.  Not later than each Servicer Remittance Date (or, in the case of certain information, as agreed between the Trustee and the Servicer, not later than four Business Days after the end of each Due Period), the Servicer shall deliver
or cause to be delivered to the Trustee (in the form mutually agreed to by the Servicer and the Trustee) in addition to the information provided on the Remittance Report, such other information reasonably available to it with respect to the Mortgage Loans as the
Trustee may reasonably require to perform the calculations necessary to make the distributions contemplated by Section 4.05 and to prepare the statements to Certificateholders contemplated by Section 4.06.  The Trustee shall not be responsible to
recompute, recalculate or verify any information provided to it by the Servicer.

(b)               The amount of Advances
to be made by the Servicer for any Distribution Date shall equal, subject to Section 4.03, the sum of (i) the aggregate amount of Monthly Payments (with each interest portion thereof net of the related Servicing Fee), due on the related Due Date in respect
of the Mortgage Loans, which Monthly Payments were delinquent as of the close of business on the related Determination Date, plus (ii) with respect to each REO Property, which REO Property was acquired during or prior to the related Prepayment Period and as to
which such REO Property an REO Disposition did not occur during the related Prepayment Period, an amount equal to the excess, if any, of the Monthly Payments (with each interest portion thereof net of the related Servicing Fee) that would have been due on the related
Due Date in respect of the related Mortgage Loans, over the net income from such REO Property transferred to the Distribution Account pursuant to Section 3.23 for distribution on such Distribution Date.

On or before 3:00 p.m. New York time on the Servicer Remittance Date, the Servicer shall remit in immediately REMIC I Available Distribution Amount to the Trustee for deposit in the
Distribution Account an amount equal to the aggregate amount of Advances, if any, to be made in respect of the Mortgage Loans and REO Properties for the related Distribution Date either (i) from its own funds or (ii) from the Collection Account, to the
extent of funds held therein for future distribution (in which case, it will cause to be made an appropriate entry in the records of Collection Account that amounts held for future distribution have been, as permitted by this Section 4.03, used by the Servicer
in discharge of any such Advance) or (iii) in the form of any combination of (i) and (ii) aggregating the total amount of Advances to be made by the Servicer with respect to the Mortgage Loans and REO Properties.  Any amounts held for future
distribution and so used shall be appropriately reflected in the Servicer’s records and replaced by the Servicer by deposit in the Collection Account on or before any future Servicer Remittance Date to the extent that the REMIC I Available Distribution Amount
for the related Distribution Date (determined without regard to Advances to be made on the Servicer Remittance Date) shall be less than the total amount that would be distributed to the Classes of Certificateholders pursuant to Section 4.01 on such Distribution
Date if such amounts held for future distributions had not been so used to make Advances.  The Trustee will provide notice to the NIMS Insurer and the Servicer by telecopy by the close of business on any Servicer Remittance Date in the event that the amount
remitted by the Servicer to the Trustee on such date is less than the Advances required to be made by the Servicer for the related Distribution Date. 

(c)                The obligation of
the Servicer to make such Advances is mandatory, notwithstanding any other provision of this Agreement but subject to Section 4.03, and, with respect to any Mortgage Loan, shall continue until the payment of the Mortgage Loan in full or the recovery of all
Liquidation Proceeds thereon.

Section 4.03         
Nonrecoverable Advances

.  Notwithstanding anything herein to the contrary, no Advance or Servicing Advance shall be required to be made hereunder by the Servicer if such Advance or Servicing Advance would, if
made, constitute a Nonrecoverable Advance.  The determination by the Servicer that it has made a Nonrecoverable Advance or that any proposed Advance or Servicing Advance, if made, would constitute a Nonrecoverable Advance, shall be evidenced by an
Officers’ Certificate of the Servicer delivered to the NIMS Insurer, the Company and the Trustee.

Section 4.04          Distributions to Holders of REMIC II Regular Interests and Class R-2 Residual
Interest.  

On each Distribution Date, the Trustee (or any duly appointed paying agent) on behalf of the Trust (i) shall be deemed to have distributed from the Distribution Account the REMIC II
Distribution Amount to the Holders of the REMIC II Regular Interests, and to have deposited such amounts for their benefit into the Distribution Account and (ii) from the Distribution Account shall distribute to the Class R Certificateholders, in accordance with the
written statement received from the Servicer pursuant to Section 4.02(b), the amounts to be distributed to the Holders of the Class R-2 Residual Interest pursuant to the definition of “REMIC II Distribution Amount” for such Distribution Date. 
Amounts distributed pursuant to clause (ii) above shall be distributed by wire transfer in immediately REMIC I Available Distribution Amount for the account of each Class R Certificateholder, or by any other means of payment acceptable to each Class R
Certificateholder of record on the immediately preceding Record Date (other than as provided in Section 9.01 respecting the final distribution), as specified by each such Certificateholder and at the address of such Holder appearing in the Certificate Register. 
Notwithstanding any other provision of this Agreement, no actual distributions pursuant to clause (i) of this Section 4.04 shall be made on account of the deemed distributions described in this paragraph except in the event of a liquidation of REMIC V, REMIC IV and
REMIC III and not REMIC II.

Section 4.05          Distributions to Holders of
Certificates, REMIC III Regular Interests, and Class R-3 Interests.  

(a)                Distributions to Certificateholders,
Deemed Distributions to Holders of REMIC III Regular Interests.   Except as provided in Section 4.05(d), on each Distribution Date, the Trustee (or any duly appointed paying agent) on behalf of the Trust (i) shall be deemed to have distributed from the
Distribution Account the REMIC III Distribution Amount to the Holders of the REMIC III Regular Interests and (ii) shall distribute to the Certificates (other than the Class C and Class P) the amounts to be distributed to the Holders of such Certificates pursuant to
the definition of “REMIC III Distribution Amount” for such Distribution Date.  Notwithstanding any other provision of this Agreement, no actual distributions pursuant to clause (i) of this Section 4.05(a) shall be made on account of the deemed
distributions described in this paragraph except in the event of a liquidation of REMIC V or REMIC IV and not REMIC III. 

(b)               Distributions from REMIC IV to the Class C
Certificates.  On each Distribution Date, the Trustee (or any duly appointed paying agent) on behalf of the Trust shall withdraw from the Distribution Account the REMIC IV Distribution Amount and shall distribute such amount pursuant to Section 4.05(d)
hereof.  The Holders of the Class C Certificates, by accepting such Certificates, acknowledge that amounts otherwise distributable to them may be used to make distributions to other Classes of Certificates, and such Holders expressly agree to, and direct the
Trustee to make, such distributions.

(c)                Distributions of the Net Swap Amount
to the Supplemental Interest Trust.  On each Distribution Date, the Trustee (or any duly appointed paying agent) on behalf of the Trust shall withdraw from the Distribution Account the REMIC VI Distribution Amount and shall pay such amount (i) on each
Distribution Date on which a Swap Default has not occurred and is not continuing, to the Supplemental Interest Trust for payment to the Swap Counterparty, and (ii) on each other Distribution Date, as set forth in Section 4.05(d).  The Holders of the Class C
Certificates, acting as the holder of the Class L6-SW Regular Interest, by accepting such Certificates and such Regular Interest, acknowledge that amounts otherwise distributable to them shall be used to make payments to the Swap Counterparty and/or distributions to
other Classes of Certificates, and such Holders expressly agree to, and direct the Trustee to make, such distributions and payments.

(d)               Distributions to the Certificateholders on
Certain Occurrences.

(i)                  Notwithstanding Section 4.05(a) and the definition of
REMIC III Distribution Amount, on each Distribution Date on which (A) a Swap Termination Payment is payable (including any amount remaining unpaid from prior Distribution Dates), unless the Swap Counterparty is the Defaulting Party or the sole Affected Party (each,
as defined in the Swap Agreement), or (B) no Net Swap Payment is due as a result of the termination of the Swap Agreement, the Trustee shall recompute the amount distributable to each Class of Certificates (other than the Class C, P and R Certificates) and the Class
L3-C Regular Interest as provided in the definition of REMIC III Distribution Amount except that the Trustee shall determine the Certificate Interest Rate of each Class of Certificates and the Class L3-C Regular Interest by using the Net WAC Rate instead of
the REMIC Net WAC Rate.  The Trustee (or any duly appointed paying agent) on behalf of the Trust shall then withdraw from the Distribution Account an amount equal to REMIC III Available Distribution Amount for such Distribution Date, and shall make the following
distributions in the following order of priority:

(A)              first, to the Supplemental Interest Trust for payment to the Swap
Counterparty, the amount of any unpaid Swap Termination Payment (including any amount remaining unpaid from prior Distribution Dates);

(B)              second, to the Holders of the Certificates (other than Class C, P and
R Certificates), the amounts distributable to each Class of Certificates as recomputed pursuant to this Section 4.05(d)(i); and

(C)              third, to the Class Holders of the Class L3-C Regular Interest the
amount distributable to such Regular Interest as recomputed pursuant to this Section 4.05(d)(i), for further distribution to the Class C Certificates pursuant to clause (ii) of this Section 4.05(d).

(ii)                Notwithstanding the definition of REMIC IV Distribution Amount,
on each Distribution Date, the Trustee (or any duly appointed paying agent) on behalf of the Trust shall distribute amounts otherwise distributable to the Class C Certificates in the following order of priority:

(A)              first, to the Reserve Fund, the amount equal to the difference between
any Net WAC Rate Carryover Amounts with respect to the Class A Certificates and the Mezzanine Certificates for such Distribution Date and any amounts described in this Section 4.05(d)(ii)(A) that were not distributed on prior Distribution Dates;

(B)              second, to the Supplemental Interest Trust, for payment to the Swap
Counterparty, any unpaid Swap Termination Payment payable by the Supplemental Interest Trust (including any amount remaining unpaid from prior Distribution Dates) (only if the Swap Counterparty is the Defaulting Party or the sole Affected Party (each as defined in
the Swap Agreement)); and

(C)              third, to the Holders of the Class C Certificates, any remaining
amounts.

(e)                Distributions from the Reserve
Fund.  On each Distribution Date, after making the distributions of the REMIC III Distribution Amounts as provided in Sections 4.05(a) and (d), the Trustee shall withdraw from the Reserve Fund the amounts on deposit therein and shall distribute such amounts
in the following order of priority:  first, concurrently, to the Class A Certificates, up to the amount of the related Net WAC Rate Carryover Amount, allocated among the Class A Certificates, pro rata, based on their respective Net WAC Rate Carryover
Amounts; then, to the Mezzanine Certificates, up to the amount of the related Net WAC Rate Carryover Amount, in the following order of priority:  first to the Class M‐1 Certificates, second to the Class M‐2 Certificates, third to
the Class M‐3 Certificates, fourth to the Class M‐4 Certificates, fifth to the Class M‐5 Certificates, sixth to the Class M‐6 Certificates, seventh to the Class M‐7 Certificates, eighth to the Class
M‐8 Certificates, ninth to the Class M‐9 Certificates, tenth to the Class M-10 Certificates, and eleventh to the Class M-11 Certificates, in each case to the extent of such amounts remaining in the Reserve Fund.

On the Distribution Date on which the Certificate Principal Balance of the Class A Certificates and the Mezzanine Certificates has been reduced to zero, after making all other distributions on
such Distribution Date (including to the Class A Certificates and the Mezzanine Certificates out of the Reserve Fund), the Trustee shall distribute all remaining amounts in the Reserve Fund to the Holders of the Class C Certificates.

(f)                 Distributions from the
Supplemental Interest Trust.  On each Distribution Date, the Supplemental Interest Trust Trustee shall withdraw from the Supplemental Interest Account the amounts equal to the Net Swap Payment and the Swap Termination Payment payable by the Supplemental
Interest Trust that are required to be deposited in the Supplemental Interest Trust pursuant to this Section 4.05 with respect to such Distribution Date and shall distribute such amounts to the Swap Counterparty on such Distribution Date.  On each Distribution
Date, the Supplemental Interest Trust Trustee shall withdraw from the Supplemental Interest Account the Net Counterparty Payment and the Swap Termination Payment payable by the Swap Counterparty and received by the Supplemental Interest Trust Trustee from the Swap
Counterparty and deposited in the Supplemental Interest Account and shall distribute such amounts as follows (provided the Swap Termination Payment shall be distributed as provided in Section 3.27(c)): 

(i)                  first, for payment to the Swap Counterparty,
any unpaid Swap Termination Payment payable by the Supplemental Interest Trust, including any amount remaining unpaid from prior Distribution Dates (unless the Swap Counterparty is the Defaulting Party or the sole Affected Party (each, as defined in the Swap
Agreement)); and

(ii)                second,

(A)              if the NIM Notes are outstanding, for payment in the amounts and in
accordance with priorities in clauses (i) through (xxv) of paragraph (j) of the definition of REMIC III Distribution Amount to the extent not paid pursuant to paragraphs (a) through (e) of this Section 4.05 on such Distribution Date; provided the amount
distributable to the Class C Certificates pursuant to paragraph (j)(xxv) of the definition of REMIC III Distribution Amount shall be equal to the lesser of (I) the amount remaining after distribution of the amount in the Supplemental Interest Account pursuant to
clauses (i) through (xxiv) of paragraph (j) of such definition on such Distribution Date and (II) the Class C NIM Payment Amount for such Distribution Date; or

(B)              if the NIM Notes are not outstanding, for payment in the amounts and in
accordance with priorities clauses (i) through (xxiv) of paragraph (j) of the definition of REMIC III Distribution Amount to the extent not paid pursuant to paragraphs (a) through (e) of this Section 4.05 on such Distribution Date.

Any amounts in the Supplemental Interest Account received from the Swap Counterparty and not distributed on a Distribution Date after payments pursuant to Section 4.05(f)(ii)(B) will remain in
the Supplemental Interest Account and be distributed pursuant to Section 4.05(f)(ii)(B) on the next Distribution Date.  On the Distribution Date on which the Certificate Principal Balance of the Class A Certificates and the Mezzanine Certificates has been
reduced to zero, after making all other distributions on such Distribution Date (including to the Class A Certificates and the Mezzanine Certificates out of the Supplemental Interest Account), the Supplemental Interest Trust Trustee shall distribute all remaining
amounts in the Supplemental Interest Account to itself.

(g)                Distribution to Class P
Certificates.  On each Distribution Date, the Trustee shall on behalf of the Trust withdraw from the Distribution Account and distribute to the Holders of the Class P Certificates, the Assigned Prepayment Premiums for such Distribution Date.

(h)                The net distributions to the Certificates
pursuant to this Section 4.05 shall be made in accordance with the written statement received from the Servicer pursuant to Section 4.02(b) and calculations provided by the Swap Counterparty under the Swap Agreement and without any responsibility to recalculate,
verify or confirm the information in such statement. 

(i)                  Amounts distributed to the
Certificateholders pursuant to this Section 4.05 shall be distributed by wire transfer in immediately REMIC I Available Distribution Amount for the account of, or by check mailed to, each such Certificateholder of record on the immediately preceding Record Date
(other than as provided in Section 9.01 respecting the final distribution), as specified by each such Certificateholder and at the address of such Holder appearing in the Certificate Register.

(j)                 All reductions in the Certificate
Principal Balance of a Certificate effected by distributions of principal and all allocations of Realized Losses made on any Distribution Date shall be binding upon all Holders of such Certificate and of any Certificate issued upon the registration of transfer or
exchange therefor or in lieu thereof, whether or not such distribution is noted on such Certificate.  The final distribution of principal of each Certificate (and the final distribution upon the Residual Certificates upon (i) the termination of REMIC I, REMIC
II, REMIC III, REMIC IV, REMIC V, and REMIC VI and (ii) the payment, or making provision for payment, of all liabilities of the Trust) shall be payable in the manner provided above only upon presentation and surrender thereof on or after the Distribution Date
therefor at the office or agency of the Certificate Registrar specified in the notice delivered pursuant to Section 4.05(k)(ii) and Section 9.01(b).

(k)               Whenever, on the basis of prepayments, Payoffs
and Monthly Payments on the Mortgage Loans and Insurance Proceeds and Liquidation Proceeds received and expected to be received during the Prepayment Period, the Servicer has notified the Trustee that it believes that the entire remaining unpaid Class Principal
Balance of any Class of Certificates will become distributable on the next Distribution Date, the Trustee shall, no later than the 18th day of the month of such Distribution Date, mail or cause to be mailed to each Person in whose name a Certificate to be so retired
is registered at the close of business on the Record Date and to the Rating Agencies a notice to the effect that:

(i)                  it is expected that funds
sufficient to make such final distribution will be available in the Distribution Account on such Distribution Date, and
 

(ii)                if such funds are available, (A) such final distribution will be
payable on such Distribution Date, but only upon presentation and surrender of such Certificate at the office or agency of the Certificate Registrar maintained for such purpose (the address of which shall be set forth in such notice), and (B) no interest shall accrue
on such Certificate after such Distribution Date.

(l)                  The Trustee shall treat the
beneficial owners of the Certificates (other than the Class P and Class C Certificates and the Residual Certificates) as having entered into a notional principal contract with the beneficial owners of the Class C Certificates.  Pursuant to each such notional
principal contract, all beneficial owners of the Certificates (other than the Class P and Class C Certificates and the Residual Certificates) shall be treated as having agreed to pay, on each Distribution Date, to the beneficial owners of the Class C Certificates an
aggregate amount equal to the excess, if any, of (i) the amount payable on such Distribution Date on the interest in REMIC III corresponding to such Class of Certificates (as determined pursuant to the definition of REMIC III Distribution Amount) over (ii) the amount
payable on such Class of Certificates on such Distribution Date under paragraphs (c) through (j) of this Section 4.05 (such excess, a “Class C Shortfall”).  A Class C Shortfall payable by any Class of Certificates shall be allocated pro rata
among the Certificates of such Class.  In addition, pursuant to such notional principal contract, the beneficial owner of the Class C Certificates shall be treated as having agreed to pay Net WAC Rate Carryover Amounts, to the extent such amounts are used to
make payments on such Certificates to the Holders of the Certificates (other than the Class P and Class C Certificates and the Residual Certificates) pursuant to the terms of this Agreement.  Any payments on the Certificates described in the preceding sentence
shall not be payments with respect to a “regular interest” in a REMIC within the meaning of Code Section 860G(a)(1).  However, any payment from the Certificates of a Class C Shortfall shall be treated for tax purposes as having been received by the
beneficial owners of such Certificates in respect of their interests in the REMIC III and as having been paid by such beneficial owners to the Supplemental Interest Trust pursuant to the notional principal contract.  Thus, each Certificate (other than the Class
P and Class C Certificates and the Residual Certificates) shall be treated as representing ownership of not only regular interests in REMIC III, but also ownership of an interest in (and obligations with respect to) a notional principal contract.  For purposes
of determining the issue price of the regular interests in REMIC III, the Trustee shall assume that the notional principal contract has a value of $10,000 as of the Closing Date in favor of the Certificates (other than the Class C and Class P Certificates and the
Residual Certificates) and shall allocate such value proportionately to each such Class of Certificates based on such Class’s initial Certificate Principal Balance.

Section 4.06          Statements.

(a)                On each
Distribution Date, the Trustee shall prepare and make available to each Holder of the Regular Certificates, the Servicer, the NIMS Insurer, the indenture trustee under the Indenture and the Rating Agencies a statement (as set forth in the penultimate paragraph of
this Section 4.06(a)), based on information provided to the Trustee by the Servicer or the Swap Counterparty, as to the distributions made on such Distribution Date:

(i)                  the record dates, the accrual period, the
determination date and the distribution date;

(ii)                the amount of the distribution made on such Distribution Date to
the Holders of each Class of Regular Certificates, separately identified, allocable to principal and the amount of the distribution made to the Holders of the Class P Certificates allocable to Prepayment Charges, Assigned Prepayment Charges and Servicer Prepayment
Charge Payment Amounts;

(iii)               the amount of the distribution made on such Distribution Date to the
Holders of each Class of Regular Certificates (other than the Class P Certificates), allocable to interest and the Pass-Through Rates, separately identified;

(iv)              the Overcollateralized Amount, the Overcollateralization Release Amount, the
Overcollateralization Deficiency Amount and the Overcollateralization Target Amount as of such Distribution Date and the Excess Overcollateralized Amount for the Mortgage Pool for such Distribution Date;

(v)                by Loan Group and in the aggregate amount of servicing
compensation received by the Servicer with respect to the related Due Period and such other customary information as the Trustee deems necessary or desirable, or which a Certificateholder reasonably requests, to enable Certificateholders to prepare their tax
returns;

(vi)              the Group I Interest Remittance Amount and the Group II Interest Remittance
Amount and the Group I Principal Remittance Amount and the Group II Principal Remittance Amount for such Distribution Date;

(vii)             the aggregate amount of Advances and Servicing Advances for the related Due
Period, the amount of unrecovered Advances and Servicing Advances (after giving effect to Advances and Servicing Advances made on the Distribution Date) outstanding and the amount of Nonrecoverable Advances and Servicing Advances for such Distribution Date;

(viii)           the number and aggregate Stated Principal Balance of the Group I Mortgage Loans, the Group
II Mortgage Loans and all Mortgage Loans at the Close of Business at the end of the related Due Period and at the beginning of the related Due Period;

(ix)              the number, aggregate principal balance, weighted average remaining term to
maturity and weighted average Mortgage Rate of the Mortgage Loans as of the related Determination Date;

(x)                by Loan Group and in the aggregate, the number and aggregate
unpaid principal balance of Mortgage Loans (a) delinquent 30‐59 days, (b) delinquent 60‐89 days, (c) delinquent 90-119 days and (d) 120 or more days in each case, as of the last day of the preceding calendar month; provided,
however, that any aggregate unpaid principal balance of Mortgage Loans shall be reported as of the last day of the related Due Period, (d) as to which foreclosure proceedings have been commenced and (e) with respect to which the related Mortgagor has
filed for protection under applicable bankruptcy laws, with respect to whom bankruptcy proceedings are pending or with respect to whom bankruptcy protection is in force;

(xi)              with respect to any Mortgage Loan that became an REO Property during the
preceding Prepayment Period, the unpaid principal balance and the Principal Balance of such Mortgage Loan as of the date it became an REO Property;

(xii)             the total number and cumulative principal balance of all REO Properties as of the
Close of Business of the last day of the preceding Prepayment Period;

(xiii)           by Loan Group and in the aggregate, the aggregate amount of Principal Prepayments made
during the related Prepayment Period;

(xiv)           by Loan Group and in the aggregate, the aggregate amount of principal and interest Realized
Losses incurred during the related Prepayment Period and the cumulative amount of principal and interest Realized Losses;

(xv)            the aggregate amount of Extraordinary Trust Fund expenses withdrawn from the Collection
Account or the Distribution Account for such Distribution Date;

(xvi)           the Certificate Principal Balance of the Class A Certificates, the Mezzanine Certificates and
the Class C Certificates, before and after giving effect to the distributions made on such Distribution Date, and the Notional Amount of the Class C Certificates, after giving effect to the distributions made on such Distribution Date;

(xvii)         the Monthly Interest Distributable Amount in respect of the Class A Certificates, the Mezzanine
Certificates and the Class C Certificates for such Distribution Date and the Unpaid Interest Shortfall Amount, if any, with respect to the Class A Certificates and the Mezzanine Certificates for such Distribution Date;

(xviii)        by Loan Group and in the aggregate, the aggregate amount of any Net Prepayment Interest Shortfalls for such
Distribution Date, to the extent not covered by payments by the Servicer pursuant to Section 3.24, and the aggregate amount of any Relief Act Interest Shortfalls for such Distribution Date;

(xix)           the Credit Enhancement Percentage for such Distribution Date;

(xx)            the related Net WAC Rate Carryover Amount for the Class A Certificates and the Mezzanine
Certificates, if any, for such Distribution Date and the amount remaining unpaid after reimbursements therefor on such Distribution Date;

(xxi)           the Trustee Fee and the Servicer Fee on such Distribution Date;

(xxii)         whether a Stepdown Date or a Trigger Event has occurred;

(xxiii)        the REMIC I Available Distribution Amount;

(xxiv)       the respective Pass‐Through Rates applicable to the Class A Certificates, the Mezzanine Certificates and the
Class C Certificates for such Distribution Date and the Pass‐Through Rate applicable to the Class A Certificates and the Mezzanine Certificates for the immediately succeeding Distribution Date;

(xxv)         by Loan Group and in the aggregate, the Principal Balance of Mortgage Loans repurchased by the
Seller;

(xxvi)       any other information that is required by the Code and regulations thereunder to be made available to
Certificateholders;

(xxvii)      the amount on deposit in the Reserve Fund;

(xxviii)    the amount of Subsequent Recoveries and Gross Subsequent Recoveries for the related Prepayment Period and the cumulative amount of
Subsequent Recoveries and Gross Subsequent Recoveries in the aggregate and for each of Loan Group I and Loan Group II; and

(xxix)       the Group I Swap Payment, the Group II Swap Payment, the Swap Payment, the Counterparty Payment, the Group I Net
Swap Payment, the Group II Net Swap Payment, the Net Swap Payment and the Net Counterparty Payment for such Distribution Date; the Group I Swap Termination Payment paid on such Distribution Date, the Group II Swap Termination Payment paid on such Distribution Date,
the Swap Termination Payment and the Swap Termination Payment remaining unpaid from prior Distribution Dates, and in each case whether payable by the Supplemental Interest Trust or by the Swap Counterparty; and any Counterparty Payments unpaid from prior Distribution
Dates.

The Trustee shall make such statement and certain other information, including without limitation, information required to be provided by the Trustee pursuant to Section 4.02 available each
month to Certificateholders, the Servicer, the NIMS Insurer, the Swap Counterparty and the Rating Agencies through the Trustee’s Corporate Trust home page on the world wide web.  Such web page is currently located at “www.etrustee.net”. 
The location of such web page and the procedures used therein are subject to change from time to time at the Trustee’s discretion.  Parties that are unable to use the above distribution options are entitled to have a paper copy mailed to them via first
class mail by calling the customer service desk and indicating such.  The Trustee 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
Trustee shall provide timely and adequate notification to all above parties regarding any such changes.

In the case of information furnished pursuant to subclauses (ii) and (iii) above, the amounts shall be expressed in a separate section of the report as a dollar amount for each Class
for each $1,000 original dollar amount as of the Closing Date.

Upon request by any Certificateholder, the Servicer, as soon as reasonably practicable, shall provide the requesting Certificateholder with such information as is necessary and appropriate, in
the Servicer’s sole discretion, for purposes of satisfying applicable reporting requirements under Rule 144A of the Securities Act.

(b)               Within a reasonable
period of time after the end of each calendar year, the Trustee shall, upon written request, furnish to each Person who at any time during the calendar year was a Certificateholder of a Regular Certificate, if requested in writing by such Person, such information as
is reasonably necessary to provide to such Person a statement containing the information set forth in subclauses (ii) and (iii) above, aggregated for such calendar year or applicable portion thereof during which such Person was a Certificateholder.  Such
obligation of the Trustee shall be deemed to have been satisfied to the extent that substantially comparable information shall be prepared and furnished by the Trustee to Certificateholders pursuant to any requirements of the Code as are in force from time to
time.

(c)                On each
Distribution Date, the Trustee shall forward to the Holders of the Residual Certificates and the NIMS Insurer a copy of the reports forwarded to the Regular Certificateholders in respect of such Distribution Date with such other information as the Trustee deems
necessary or appropriate.

(d)               Within a reasonable
period of time after the end of each calendar year, the Trustee shall deliver to each Person who at any time during the calendar year was a Holder of a Residual Certificate, if requested in writing by such Person, such information as is reasonably necessary to
provide to such Person a statement containing the information provided pursuant to the previous paragraph aggregated for such calendar year or applicable portion thereof during which such Person was a Holder of a Residual Certificate.  Such obligation of the
Trustee shall be deemed to have been satisfied to the extent that substantially comparable information shall be prepared and furnished to Certificateholders by the Trustee pursuant to any requirements of the Code as from time to time in force.

(e)                On each
Distribution Date the Trustee shall provide Bloomberg Financial Markets, L.P. (“Bloomberg”) CUSIP level factors for each Class of Certificates as of such Distribution Date, using a format and media mutually acceptable to the Trustee and
Bloomberg.

Section 4.07          Compliance with Withholding Requirements

.  Notwithstanding any other provision of this Agreement, the Trustee shall comply with all federal withholding requirements respecting payments to Certificateholders of interest
or original issue discount that the Trustee reasonably believes are applicable under the Code.  The consent of Certificateholders shall not be required for such withholding.  In the event the Trustee does withhold any amount from interest or original issue
discount payments or advances thereof to any Certificateholder pursuant to federal withholding requirements, the Trustee shall indicate the amount withheld to such Certificateholders.

Section 4.08          Commission Reporting. 

(a)                The Trustee and
the Servicer shall reasonably cooperate with the Company in connection with the Trust’s satisfying the reporting requirements under the Exchange Act.

(i)                  Within 15 days after each Distribution Date, the
Company shall, in accordance with industry standards and applicable regulations, file with the Commission via the Electronic Data Gathering Analysis and Retrieval System (“EDGAR”), a Distribution Report on Form 10-D, signed by the Company, with a
copy of the monthly statement to be furnished by the Trustee to the Certificateholders for such Distribution Date and detailing all data elements specified in Item 1121(a) of Regulation AB as part of the monthly statement or otherwise as part of the Form 10-D;
provided that the Company shall have received no later than 12:00 p.m. P.S.T. 2 Business Days prior to the date such Distribution Report on Form 10-D is required to be filed, all information required to be provided to the Company as described in clause (a)(iv)
below.

(ii)                The Company will prepare and file Current Reports on Form 8-K in
respect of the Trust, as and when required.

(iii)               Prior to January 30 of the first year in which the Company is able to
do so under applicable law, the Company shall, in accordance with industry standards and applicable regulations, file a Form 15 Suspension Notice with respect to the Trust Fund, if applicable. Prior to (x) March 15 of the year following the year of the execution of
this Agreement and (y) unless and until a Form 15 Suspension Notice shall have been filed, prior to March 15 of each year thereafter, the Servicer shall provide the Company with an annual statement of compliance, together with a copy of the assessment of compliance
and attestation report to be delivered by the Servicer pursuant to Section 3.20 (including with respect to the Sub-Servicer and any other subservicer or subcontractor, if required to be filed).  Prior to (x) March 31, of the year following the year of the
execution of this Agreement and (y) unless and until a Form 15 Suspension Notice shall have been filed, March 31 of each year thereafter, the Company shall, subject to subsection (d) below, file a Form 10-K, in substance as required by applicable law or applicable
Securities and Exchange Commission staff’s interpretations and conforming to industry standards, with respect to the Trust Fund. Such Form 10-K shall include the assessment of compliance, attestation report, annual statements of compliance and other
documentation provided by the Servicer pursuant to Section 3.20 (including with respect to the Sub-Servicer and any other subservicer or subcontractor, if required to be filed) and with respect to the Trustee, and the Form 10-K (the
“Certification”) signed by the senior officer of the Company in charge of securitization; provided that the Company shall have received no later than March 15 of each calendar year prior to the filing deadline for the Form 10-K all
information, data and exhibits required to be provided or filed with such Form 10-K and required to be provided to the Company as described in clause (a)(iv) below.  If they are not so timely delivered, the Company shall file an amended Form 10-K including
such documents as exhibits reasonably promptly after they are delivered to the Company. 

(iv)              As to each item of information required to be included in any Form 10-D,
Form 8-K or Form 10-K, the Company’s obligation to include the information in the applicable report is subject to receipt from the entity that is indicated in Exhibit K as the responsible party for providing that information, if other than the Trustee or the
Company, as applicable, as and when required as described above.  Each of the Trustee, the Servicer and the Company, as applicable, hereby agree to notify and provide to the Trustee and the Company all information that is required to be included in any Form
10-D, Form 8-K or Form 10-K, with respect to which that entity is indicated in Exhibit K as the responsible party for providing that information.  The Servicer shall be responsible for determining the pool concentration applicable to any subservicer or
originator at any time, for purposes of disclosure as required by Items 1117 and 1119 of Regulation AB. 

(b)               The Company shall
prepare and the appropriate person shall execute, in accordance with the Exchange Act or any other applicable law, any certification required under the Exchange Act or any other applicable law to accompany the Form 10‐K or any other periodic report.  The
Trustee shall sign a back-up certification (in the form attached hereto as Exhibit P) for the benefit of the Company and its officers, directors and Affiliates.  The Trustee shall indemnify and hold harmless the Company, the Servicer and each Person, if any, who
“controls” the Company or the Servicer within the meaning of the Securities Act of 1933, as amended, and their respective officers and directors from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and
related costs, judgments and other costs and expenses arising out of or based upon (i) a breach of the Trustee’s obligations under Section 8.18 to provide the assessment of compliance until a Form 15 is filed, Section 4.06(a) to provide statements as specified
in Section 4.06(a), Section 4.08(a)(iv) to provide information to be included in any Form 10-D, Form 8-K or Form 10-K or this Section 4.08(b) to provide backup certification or (ii) any material misstatement or omission in (A) the Certification made in reliance
on any material misstatement or omission contained in the certification provided by the Trustee in the form of Exhibit P or in the assessment of compliance provided pursuant to Section 8.18 until a Form 15 is filed or (B) the information provided by the Trustee
pursuant to Section 4.08(a)(iv) for inclusion in any Form 10‐D, Form 8‐K or Form 10‐K or in the statement provided by the Trustee pursuant to Section 4.06(a) unless such misstatement or omission is based on the information provided to the Trustee by
the Servicer or the Swap Counterparty.  The Servicer shall indemnify and hold harmless the Company, the Trustee and each Person, if any, who “controls” the Company or the Trustee within the meaning of the Securities Act of 1933, as amended, and their
respective officers and directors from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses arising out of or based upon (i) a breach of the Servicer’s
obligations under Section 3.20 or Section 4.08 or (ii) any material misstatement or omission in the Certification made in reliance on any material misstatement or omission contained in any certification provided by the Servicer under this Section 4.08 or in the
Officer’s Certificate provided pursuant to Section 3.20(e) or the Assessment of Compliance provided pursuant to Section 3.20(e).  If the indemnification provided for herein is unavailable or insufficient to hold harmless the indemnified party, then
(i) the Trustee agrees that in connection with (a) a breach of the Trustee’s obligations under Section 8.18 to provide the assessment of compliance until a Form 15 is filed, Section 4.06(a) to provide statements as specified in Section 4.06(a), Section
4.08(a)(iv) to provide information to be included in any Form 10‐D, Form 8‐K or Form 10‐K or this Section 4.08(b) to provide backup certification or (b) any material misstatement or omission in (A) the Certification made in reliance on any
material misstatement or omission contained in the certification provided by the Trustee in the form of Exhibit P or in the assessment of compliance provided pursuant to Section 8.18 until a Form 15 is filed, or (B) the information provided by the Trustee pursuant to
Section 4.08(a)(iv) for inclusion in any Form 10‐D, Form 8‐K or Form 10‐K or in the statement provided by the Trustee pursuant to Section 4.06(a) unless such misstatement or omission is based on the information provided to the Trustee by the
Servicer or the Swap Counterparty that it shall contribute to the amount paid or payable by the Company and/or the Servicer as a result of the losses, claims, damages or liabilities of the Company and/or the Servicer in such proportion as is appropriate to reflect
the relative fault of the Company or the Servicer, as the case may be, on the one hand and the Trustee on the other and (ii) the Servicer agrees that it shall contribute to the amount paid or payable by the Company and/or the Trustee as a result of the losses,
claims, damages or liabilities of the Company and/or the Trustee in such proportion as is appropriate to reflect the relative fault of the Company or the Trustee, as the case may be, on the one hand and the Servicer on the other in connection with (a) a breach of the
Servicer’s obligations under this Section 4.08(b) or (b) any material misstatement or omission in the Certification made in reliance on any material misstatement or omission contained in the certification provided by the Servicer under this Section 4.08 or
in the Officer’s Certificate provided pursuant to Section 3.20(e) or the Assessment of Compliance provided pursuant to Section 3.20(a).

Section 4.09          Supplemental Interest Trust.

(a)        On the Closing Date, there is hereby established a separate common law trust (the “Supplemental Interest
Trust”), into which the Company shall deposit: (i) the Swap Agreement and (ii) $1,000.  The Supplemental Interest Trust shall be maintained by the Supplemental Interest Trust Trustee, who initially, shall be the Trustee.On the Closing Date, the
Supplemental Interest Trust Trustee shall establish and maintain in its name, a separate non-interest bearing account for the benefit of the Holders of the Class A Certificates, the Mezzanine Certificates, and the Class C Certificates (the “Supplemental
Interest Account”), to be held in the Supplemental Interest Trust into which the Company shall initially deposit $1,000.  The Supplemental Interest Account shall be with an Eligible Institution, and funds on deposit therein shall be held separate and apart
from, and shall not be commingled with, any other moneys, including, without limitation, other moneys of the Trustee or of the Supplemental Interest Trust Trustee held pursuant to this Agreement. 

(b)        The Supplemental Interest Trust Trustee shall deposit, to the extent of REMIC I Available Distribution Amount, into the
Supplemental Interest Account any amounts required to be paid to the Supplemental Interest Trust pursuant to Section 4.05 and shall distribute from the Supplemental Interest Trust any such amounts to the Swap Counterparty as required by Section 4.05(f).  The
Supplemental Interest Trust Trustee shall deposit into the Supplemental Interest Account any amounts received from the Swap Counterparty and shall distribute from the Supplemental Interest Trust any such amounts to the Swap Counterparty and to the Holders of the
Class A Certificates, the Mezzanine Certificates, and the Class C Certificates as required pursuant to Section 4.05(f).

(c)        Funds in the Supplemental Interest Trust shall be invested in Eligible Investments.  The Class C Certificates shall
evidence ownership of the Supplemental Interest Trust for federal income tax purposes and the Holders of the majority of the Percentage Interest thereof shall direct the Supplemental Interest Trust Trustee, in writing, as to investment of amounts on deposit
therein.  All income and gain earned upon such investment shall be deposited into the Supplemental Interest Account.

(d)        To the extent that the Supplemental Interest Trust is determined to be a separate legal entity from the Supplemental
Interest Trust Trustee, any obligation of the Supplemental Interest Trust Trustee under the Swap Agreement shall be deemed to be an obligation of the Supplemental Interest Trust.

(e)        The Trustee shall treat the Supplemental Interest Trust as an outside reserve fund within the meaning of Treasury
Regulation 1.860G-2(h) that is owned by the Holders of the Class C Certificates and that is not an asset of any REMIC.

Section 4.10          Preference Claims

.  The Trustee shall promptly notify the NIMS Insurer of any proceeding or the institution of any action, of which a Responsible Officer of the Trustee has actual knowledge,
seeking the avoidance as a preferential transfer under applicable bankruptcy, insolvency, receivership or similar law (a “Preference Claim”) of any distribution made with respect to the Class C Certificates or the Class P Certificates.  Each
Holder of the Class C Certificates or the Class P Certificates, by its purchase of such Certificates, the Servicer, the Trustee and the Delaware Trustee hereby agree that the NIMS Insurer may at any time during the continuation of any proceeding relating to a
Preference Claim direct all matters relating to such Preference Claim, including, without limitation, (i) the direction of any appeal of any order relating to such Preference Claim and (ii) the posting of any surety, supersedeas or performance bond pending
any such appeal.  In addition and without limitation of the foregoing, the NIMS Insurer shall be subrogated to the rights of the Servicer, the Trustee, the Delaware Trustee and each Holder of the Class C Certificates and the Class P Certificates in the conduct
of any such Preference Claim, including, without limitation, all rights of any party to an adversary proceeding action with respect to any court order issued in connection with any such Preference Claim; provided, however, that the NIMS Insurer will not
have any rights with respect to any Preference Claim set forth in this paragraph unless the Trustee, as indenture trustee or indenture administrator with respect to the Insured NIM Notes or the holder of any Insured NIM Notes has been required to relinquish a
distribution made on the Class C Certificates, the Class P Certificates or the Insured NIM Notes, as applicable, and the NIMS Insurer made a payment in respect of such relinquished amount.

ARTICLE V

The Certificates

Section 5.01          The Certificates.

(a)                The Certificates shall be substantially
in the forms set forth in Exhibit A and B with the additional insertion from Exhibit H attached hereto, and shall be executed by the Trustee on behalf of the Trust, authenticated by the Trustee (or any duly appointed Authenticating Agent) and delivered (i) upon and
pursuant to the order of the Company and (ii) upon receipt by the Trustee of the documents specified in Section 2.04. The Certificates shall be issuable in Authorized Denominations. Certificates shall be executed by manual or facsimile signature on behalf of the
Trust by authorized officers of the Trustee. Certificates bearing the manual or facsimile signatures of individuals who were at the time of execution the proper officers of the Trustee shall bind the Trust, notwithstanding that such individuals or any of them have
ceased to hold such offices prior to the authentication and delivery of such Certificates or did not hold such offices at the date of such Certificates. No Certificate shall be entitled to any benefit under this Agreement, or be valid for any purpose, unless there
appears on such Certificate a certificate of authentication substantially in the form provided for herein executed by the Trustee or any Authenticating Agent by manual signature, and such certificate upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and delivered hereunder. All Certificates shall be dated the date of their authentication.

(b)               The following definitions apply for purposes of
this Section 5.01: “Disqualified Organization” means any Person which is not a Permitted Transferee, but does not include any “Pass-Through Entity” which owns or holds a Residual Certificate and of which a Disqualified
Organization, directly or indirectly, may be a stockholder, partner or beneficiary; “Pass-Through Entity” means any regulated investment company, real estate investment trust, common trust fund, partnership, trust or estate, and any organization to which
Section 1381 of the Code applies; “Ownership Interest” means, with respect to any Residual Certificate, any ownership or security interest in such Residual Certificate, including any interest in a Residual Certificate as the Holder thereof and any
other interest therein whether direct or indirect, legal or beneficial, as owner or as pledgee; “Transfer” means any direct or indirect transfer or sale of, or directly or indirectly transferring or selling any Ownership Interest in a Residual
Certificate; and “Transferee” means any Person who is acquiring by Transfer any Ownership Interest in a Residual Certificate.

(c)                Restrictions on Transfers of the Residual
Certificates to Disqualified Organizations are set forth in this Section 5.01(c).

(i)         Each Person who has or who acquires any Ownership Interest in a Residual Certificate shall
be deemed by the acceptance or acquisition of such Ownership Interest to have agreed to be bound by the following provisions and to have irrevocably authorized the Trustee or its designee under clause (iii)(A) below to deliver payments to a Person other than such
Person and to negotiate the terms of any mandatory sale under clause (iii)(B) below and to execute all instruments of transfer and to do all other things necessary in connection with any such sale. The rights of each Person acquiring any Ownership Interest in a
Residual Certificate are expressly subject to the following provisions:

(A)       Each Person holding or acquiring any Ownership Interest in a Residual Certificate shall be a Permitted Transferee and shall
promptly notify the Trustee of any change or impending change in its status as a Permitted Transferee.

(B)       In connection with any proposed Transfer of any Ownership Interest in a Residual Certificate to a U.S. Person, the Trustee
shall require delivery to it, and shall not register the Transfer of any Residual Certificate until its receipt of (1) an affidavit and agreement (a “Transferee Affidavit and Agreement”) attached hereto as Exhibit J from the proposed Transferee, in
form and substance satisfactory to the Company, representing and warranting, among other things, that it is not a Non-U.S. Person, that such transferee is a Permitted Transferee, that it is not acquiring its Ownership Interest in the Residual Certificate that is the
subject of the proposed Transfer as a nominee, trustee or agent for any Person who is not a Permitted Transferee, that for so long as it retains its Ownership Interest in a Residual Certificate, it will endeavor to remain a Permitted Transferee, and that it has
reviewed the provisions of this Section 5.01(c) and agrees to be bound by them, and (2) a certificate, attached hereto as Exhibit I, from the Holder wishing to transfer the Residual Certificate, in form and substance satisfactory to the Company, representing and
warranting, among other things, that no purpose of the proposed Transfer is to allow such Holder to impede the assessment or collection of tax.

(C)       Notwithstanding the delivery of a Transferee Affidavit and Agreement by a proposed Transferee under clause (B) above, if the
Trustee has actual knowledge that the proposed Transferee is not a Permitted Transferee, no Transfer of an Ownership Interest in a Residual Certificate to such proposed Transferee shall be effected.

(D)       Each Person holding or acquiring any Ownership Interest in a Residual Certificate agrees by holding or acquiring such
Ownership Interest (i) to require a Transferee Affidavit and Agreement from any other Person to whom such Person attempts to transfer its Ownership Interest and to provide a certificate to the Trustee in the form attached hereto as Exhibit J; (ii) to obtain the
express written consent of the Company prior to any transfer of such Ownership Interest, which consent may be withheld in the Company’s sole discretion; and (iii) to provide a certificate to the Trustee in the form attached hereto as Exhibit I.

(ii)        The Trustee shall register the Transfer of any Residual Certificate only if it shall have
received the Transferee Affidavit and Agreement, a certificate of the Holder requesting such transfer in the form attached hereto as Exhibit J and all of such other documents as shall have been reasonably required by the Trustee as a condition to such
registration.

(iii)       (A)       If any “disqualified organization” (as defined in
Section 860E(e)(5) of the Code) shall become a holder of a Residual Certificate, then the last preceding Permitted Transferee shall be restored, to the extent permitted by law, to all rights and obligations as Holder thereof retroactive to the date of registration of
such Transfer of such Residual Certificate. If any Non-U.S. Person shall become a holder of a Residual Certificate, then the last preceding holder which is a U.S. Person shall be restored, to the extent permitted by law, to all rights and obligations as Holder
thereof retroactive to the date of registration of the Transfer to such Non-U.S. Person of such Residual Certificate. If a transfer of a Residual Certificate is disregarded pursuant to the provisions of Treasury Regulations Section 1.860E-1 or Section 1.860G-3, then
the last preceding Permitted Transferee shall be restored, to the extent permitted by law, to all rights and obligations as Holder thereof retroactive to the date of registration of such Transfer of such Residual Certificate. Neither the Trust nor the Trustee shall
be under any liability to any Person for any registration of Transfer of a Residual Certificate that is in fact not permitted by this Section 5.01(c) or for making any payments 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.

(B)       If any purported Transferee shall become a Holder of a Residual Certificate in violation of the restrictions in this Section
5.01(c) and to the extent that the retroactive restoration of the rights of the Holder of such Residual Certificate as described in clause (iii)(A) above shall be invalid, illegal or unenforceable, then the Company shall have the right, without notice to the Holder
or any prior Holder of such Residual Certificate, to sell such Residual Certificate to a purchaser selected by the Company on such terms as the Company may choose. Such purported Transferee shall promptly endorse and deliver each Residual Certificate in accordance
with the instructions of the Company. Such purchaser may be the Company itself or any affiliate of the Company. The proceeds of such sale, net of the commissions (which may include commissions payable to the Company or its affiliates), expenses and taxes due, if any,
shall be remitted by the Company to such purported Transferee. The terms and conditions of any sale under this clause (iii)(B) shall be determined in the sole discretion of the Company, and the Company shall not be liable to any Person having an Ownership Interest in
a Residual Certificate as a result of its exercise of such discretion.

(iv)       The Servicer shall make available, upon written request from the Trustee, all information necessary to
compute any tax imposed (A) as a result of the Transfer of an Ownership Interest in a Residual Certificate to any Person who is not a Permitted Transferee, including the information regarding “excess inclusions” of such Residual Certificates required to
be provided to the Internal Revenue Service and certain Persons as described in Treasury Regulation Section 1.860D-1(b)(5), and (B) as a result of any regulated investment company, real estate investment trust, common trust fund, partnership, trust, estate or
organizations described in Section 1381 of the Code having as among its record holders at any time any Person who is not a Permitted Transferee. Reasonable compensation for providing such information may be required by the Servicer from such Person.

(v)        The provisions of this Section 5.01 set forth prior to this Section (v) may be modified, added to
or eliminated by the Company, the Servicer and the Trustee, with the consent of the NIMS Insurer, provided that there shall have been delivered to the Trustee the following:

(A)       written notification from each of the Rating Agencies to the effect that the modification, addition to or elimination of such
provisions will not cause such Rating Agency to downgrade its then-current Ratings of the Certificates; and

(B)       an Opinion of Counsel, in form and substance satisfactory to the Company  and NIMS Insurer (as evidenced by certificates
of the Company and the NIMS Insurer), to the effect that such modification, addition to or absence of such provisions will not cause REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI to cease to qualify as a REMIC and will not create a risk that (1) REMIC
I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI may be subject to an entity-level tax caused by the Transfer of any Residual Certificate to a Person which is not a Permitted Transferee or (2) a Certificateholder or another Person will be subject to a
REMIC-related tax caused by the Transfer of a Residual Certificate to a Person which is not a Permitted Transferee.

(vi)       The following legend shall appear on all Residual Certificates:

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE COMPANY
AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT EITHER (A) THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY ORGANIZATION (OTHER
THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE
CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), OR (C) BEING HEREINAFTER REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR (D) AN AGENT OF A DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO ENABLE THE TRANSFEROR TO
IMPEDE THE ASSESSMENT OR COLLECTION OF TAX. SUCH AFFIDAVIT SHALL INCLUDE CERTAIN REPRESENTATIONS AS TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS
CLASS R CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER,
INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THE CLASS R CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

(vii)      The Tax Matters Person for each of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC VI, while not
a Disqualified Organization, shall be the tax matters person for the related REMIC within the meaning of Section 6231(a)(7) of the Code and Treasury Regulation Section 1.860F-4(d).

(d)        No transfer, sale, pledge or other disposition of any Class C Certificate, Class P Certificate or Residual Certificate
shall be made unless such disposition is exempt from the registration requirements of the Securities Act and any applicable state securities laws or is made in accordance with the Securities Act and laws.  In the event of any such transfer of any Class C
Certificate, Class P Certificate or Residual Certificate (other than in connection with (i) the initial transfer of any Class C Certificate, Class P Certificate or Residual Certificates by the Company to the Seller, (ii) the transfer of any Class C Certificate, Class
P Certificate or Residual Certificates by the Seller to an Affiliate of the Seller or to a trust, the depositor of which is an Affiliate of the Seller, (iii) the transfer of any Class C Certificate, Class P Certificate or Residual Certificates by an Affiliate of the
Seller to one or more entities sponsored by such Affiliate or to a trust, the depositor of which is one or more entities sponsored by such Affiliate or (iv) a subsequent transfer of any Class C Certificates, Class P Certificates or Residual Certificates to the Seller
or its designee by such entity or trust described in clauses (ii) or (iii) above to which the Certificates were previously transferred in reliance on clauses (ii) or (iii) above) (i) unless such transfer is made in reliance upon Rule 144A (as evidenced by
the investment letter delivered to the Trustee, in substantially the form attached hereto as Exhibit L) under the Securities Act, the Trustee and the Company shall require a written Opinion of Counsel (which may be in‐house counsel) acceptable to and in form
and substance reasonably satisfactory to the Trustee and the Company that such transfer may be made pursuant to an exemption, describing the applicable exemption and the basis therefor, from the Securities Act or is being made pursuant to the Securities Act, which
Opinion of Counsel shall not be an expense of the Trustee, the Trust Fund or the Company or (ii) the Trustee shall require the transferor to execute a transferor certificate (in substantially the form attached hereto as Exhibit N) and the transferee to
execute an investment letter (in substantially the form attached hereto as Exhibit N) acceptable to and in form and substance reasonably satisfactory to the Company and the Trustee certifying to the Company and the Trustee the facts surrounding such transfer, which
investment letter shall not be an expense of the Trustee or the Company.  The Holder of a Class C Certificate, Class P Certificate or Residual Certificate desiring to effect such transfer shall, and does hereby agree to, indemnify the Trustee, the Company and
the Trust Fund against any liability that may result if the transfer is not so exempt or is not made in accordance with such federal and state laws.

(e)        For so long as the Supplemental Interest Trust is in existence, no transfer of a Class A Certificate or Mezzanine
Certificate shall be made unless the Trustee shall have received a representation letter from the transferee of such Certificate, substantially in the form set forth in Exhibit O, to the effect that either (i) it is neither a Plan nor a Person acting on behalf of any
such Plan or using the assets of any such Plan to effect such transfer or (ii) it is an accredited investor within the meaning of Prohibited Transaction Exemption 2002-41, as amended from time to time (the "Exemption") and  the acquisition and holding of such
Certificate and the separate right to receive payments from the Supplemental Interest Trust are eligible for the exemptive relief available under Prohibited Transaction Class Exemption (“PTCE”) 84-14 (for transactions by independent "qualified
professional asset managers"), 91-38 (for transactions by bank collective investment funds), 90-1 (for transactions by insurance company pooled separate accounts), 95-60 (for transactions by insurance company general accounts) or 96-23 (for transactions effected by
"in-house asset managers").  If the Class A Certificate or the Mezzanine Certificate is a Book-Entry Certificate, the transferee will be deemed to have made a representation as provided in clause (i) or (ii) of this paragraph, as applicable.

Subsequent to the termination of the Supplemental Interest Trust, no transfer of a Mezzanine Certificate shall be made unless the Trustee shall have received a representation letter from the
transferee of such Certificate, substantially in the form set forth in Exhibit O, to the effect that either (i) it is neither a Plan nor a Person acting on behalf of any such Plan or using the assets of any such Plan to effect such transfer or it is not a Plan or a
trustee or other Person acting on behalf of a Plan or using "plan assets" of a Plan to effect such transfer or (ii) it has acquired and is holding such Certificate in reliance on the Exemption, and that it understands that there are certain conditions to the
availability of the Exemption, including that the certificate must be rated, at the time of purchase, not lower than "BBB-"(or its equivalent) by S&P, Fitch or Moody's, and the Certificate is so rated or (iii) (1) it is an insurance company, (2) the source of
funds used to acquire or hold the certificate or interest therein is an "insurance company general account," as such term is defined in PTCE 95-60, and (3) the conditions in Sections I and III of PTCE 95-60 have been satisfied.   If the Mezzanine
Certificate is a Book-Entry Certificate, the transferee will be deemed to have made a representation as provided in clause (i), (ii) or (iii) of this paragraph, as applicable.

No transfer of a Class C Certificate, Class P Certificate or Residual Certificate or any interest therein shall be made to any Plan subject to ERISA or Section 4975 of the Code, any
Person acting, directly or indirectly, on behalf of any such Plan or any Person acquiring such Certificates with “Plan Assets” of a Plan within the meaning of the Department of Labor regulation promulgated at 29 C.F.R. § 2510.3‐101
(“Plan Assets”) unless, in the case of the Class C Certificates or the Class P Certificates, the Company, the Trustee and the Servicer are provided with an Opinion of Counsel which establishes to the satisfaction of the Company, the Trustee and the
Servicer that the purchase of such Certificates is permissible under applicable law, will not constitute or result in any prohibited transaction under ERISA or Section 4975 of the Code and will not subject the Company, the Servicer, the Trustee or the Trust Fund
to any obligation or liability (including obligations or liabilities under ERISA or Section 4975 of the Code) in addition to those undertaken in this Agreement, which Opinion of Counsel shall not be an expense of the Company, the Servicer, the Trustee or the
Trust Fund.  Neither an Opinion of Counsel nor any certification will be required in connection with the (i) initial transfer of any Class C Certificate, Class P Certificate or Residual Certificates by the Company to the Seller, (ii) the transfer of any Class C
Certificate, Class P Certificate or Residual Certificates by the Seller to an Affiliate of the Seller or to a trust, the depositor of which is an Affiliate of the Seller, (iii) the transfer of any Class C Certificates, Class P Certificates or Residual Certificates by
an Affiliate of the Seller to one or more entities sponsored by such Affiliate or to a trust the depositor of which is one or more entities sponsored by such Affiliate or (iv) a subsequent transfer of any Class C Certificates, Class P Certificates or Residual
Certificates to the Seller or its designee by such entity or trust described in clauses (ii) or (iii) above to which the Certificates were previously transferred in reliance on clauses (ii) or (iii) above (in which case, the Company, the Seller, any such Affiliate
and such entities sponsored by such Affiliate shall have deemed to have represented that the applicable transferee is not a Plan or a Person investing Plan Assets) and the Trustee shall be entitled to conclusively rely upon a representation (which, upon the request
of the Trustee, shall be a written representation) from the Company of the status of each transferee, the Seller or such an Affiliate.  Each transferee of a Class C Certificate, Class P Certificate or Residual Certificate shall sign a letter substantially in the
form of Exhibit O to demonstrate its compliance with this Section 5.01(e) (other than in connection with the (i) initial transfer of any Class C Certificate, Class P Certificate or Residual Certificates by the Company to the Seller, (ii) the transfer of any
Class C Certificate, Class P Certificate or Residual Certificates by the Seller to an Affiliate of the Seller or to a trust, the depositor of which is an Affiliate of the Seller, (iii) the transfer of any Class C Certificates, Class P Certificates or Residual
Certificates by an Affiliate of the Seller to one or more entities sponsored by such Affiliate or to a trust the depositor of which is one or more entities sponsored by such Affiliate or (iv) a subsequent transfer of any Class C Certificates, Class P Certificates or
Residual Certificates to the Seller or its designee by such entity or trust described in clauses (ii) or (iii) above to which the Certificates were previously transferred in reliance on clauses (ii) or (iii) above). 

If any Certificate or any interest therein is acquired or held in violation of the provisions of the preceding paragraphs, the next preceding permitted beneficial owner will be treated as the
beneficial owner of that Certificate retroactive to the date of transfer to the purported beneficial owner.  Any purported beneficial owner whose acquisition or holding of any such Certificate or interest therein was effected in violation of the provisions of
the preceding paragraph shall indemnify and hold harmless the Company, the Servicer, the Trustee and the Trust Fund from and against any and all liabilities, claims, costs or expenses incurred by those parties as a result of that acquisition or holding.

Section 5.02         
Certificates Issuable in Classes; Distributions of Principal and Interest; Authorized Denominations

. The aggregate principal amount of the Certificates that may be authenticated and delivered under this Agreement is limited to the aggregate Principal Balance of the Mortgage Loans as of the
Cut-Off Date, as specified in the Preliminary Statement to this Agreement, except for Certificates authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Certificates pursuant to Section 5.03. Such aggregate principal
amount shall be allocated among one or more Classes having designations, types of interests, initial per annum Pass-Through Rates, original Class Certificate Principal Balances and Assumed Final Maturity Dates as specified in the Preliminary Statement to this
Agreement. The aggregate Percentage Interest of each Class of Certificates of which the Class Principal Balance equals zero as of the Cut-Off Date that may be authenticated and delivered under this Agreement is limited to 100%. Certificates shall be issued in
Authorized Denominations.

Section 5.03         
Registration of Transfer and Exchange of Certificates

. The Trustee on behalf of the Trust shall cause to be maintained at one of its offices or at its designated agent, a Certificate Register in which there shall be recorded the name and
address of each Certificateholder. Subject to such reasonable rules and regulations as the Trustee may prescribe, the Certificate Register shall be amended from time to time by the Trustee or its agent to reflect notice of any changes received by the Trustee or its
agent pursuant to Section 10.06.  The Trustee hereby appoints itself as the initial Certificate Registrar.

Upon surrender for registration of transfer of any Certificate to the Trustee at the Corporate Trust Office of the Trustee, or such other address or agency as may hereafter be provided to the
Servicer in writing by the Trustee, the Trustee on behalf of the Trust shall execute, and the Trustee or any Authenticating Agent shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Certificates of Authorized
Denominations. At the option of the Certificateholders, Certificates may be exchanged for other Certificates in Authorized Denominations of like Certificate Principal Balance or Percentage Interest, as applicable, upon surrender of the Certificates to be exchanged at
any such office or agency. Whenever any Certificates are so surrendered for exchange, the Trustee on behalf of the Trust shall execute, and the Trustee, or any Authenticating Agent, shall authenticate and deliver, the Certificates which the Certificateholder making
the exchange is entitled to receive. Every Certificate presented or surrendered for transfer shall be duly endorsed by, or be accompanied by a written instrument of transfer in form satisfactory to the Trustee or any Authenticating Agent and duly executed by, the
Holder thereof or such Holder’s attorney duly authorized in writing; provided that, notwithstanding anything herein or in any Certificate to the contrary, no Guaranteed Signature shall be requested if the transfer is between the Depositer and any of its
Affiliates or between two Affiliates of the Depositor. 

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

All Certificates surrendered for exchange or transfer shall be cancelled by the Trustee or any Authenticating Agent.

Section 5.04         
Mutilated, Destroyed, Lost or Stolen Certificates

. If (i) any mutilated Certificate is surrendered to the Trustee or any Authenticating Agent, or (ii) the Trustee or any Authenticating Agent receives evidence to their satisfaction of the
destruction, loss or theft of any Certificate, and there is delivered to the Trustee or any Authenticating Agent such security or indemnity as may be required by them to save each of them and the Trust harmless, then, in the absence of notice to the Trustee or any
Authenticating Agent (and in the case of the Class C Certificates and the Class P Certificates, the NIMS Insurer) that such Certificate has been acquired by a protected purchaser, the Trustee on behalf of the Trust shall execute and the Trustee or any Authenticating
Agent shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like Certificate Principal Balance or Percentage Interest as applicable. Upon the issuance of any new Certificate under
this Section 5.04, the Trustee or any Authenticating Agent may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee or any
Authenticating Agent) connected therewith. Any replacement Certificate issued pursuant to this Section 5.04 shall constitute complete and indefeasible evidence of a beneficial interest in the Trust as if originally issued, whether or not the lost or stolen
Certificate shall be found at any time.

Section 5.05          Persons
Deemed Owners

. The Company, the Servicer, the Trust, the Trustee, the Delaware Trustee, the NIMS Insurer and any agent of any of them may treat the Person in whose name any Certificate is registered as
the owner of such Certificate for the purpose of receiving distributions pursuant to Article IV and for all other purposes whatsoever, and none of the Company, the Servicer, the Trust, the Trustee, the Delaware Trustee, the NIMS Insurer the Certificate Registrar or
any agent thereof shall be affected by notice to the contrary.

Section 5.06         
[Reserved.].

Section 5.07         
Book-Entry for Book-Entry Certificates

. Notwithstanding the foregoing, the Book-Entry Certificates, upon original issuance, shall be issued in the form of one or more word-processed Certificates of Authorized Denomination
representing the Book-Entry Certificates, to be delivered to DTC, the initial Clearing Agency, by, or on behalf of, the Company. The Book-Entry Certificates shall initially be registered on the Certificate Register in the name of Cede & Co., the nominee of DTC,
as the initial Clearing Agency, and no Beneficial Holder shall receive a definitive certificate representing such Beneficial Holder’s interest in any Class of Book-Entry Certificate, except as provided above and in Section 5.09. Each Book-Entry Certificate
shall bear the following legend:

Unless this Certificate is presented by an authorized representative of The Depositor Trust
Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer, exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.

Unless and until definitive, fully registered Book-Entry Certificates (the “Definitive Certificates”) have been issued to the Beneficial Holders pursuant to Section
5.09:

(a)        the provisions of this Section 5.07 shall be in full force and effect with respect to the Book-Entry
Certificates;

(b)        the Servicer and the Trustee may deal with the Clearing Agency for all purposes with respect to the Book-Entry
Certificates (including the making of distributions on the Book-Entry Certificates) as the sole Certificateholder;

(c)        to the extent that the provisions of this Section 5.07 conflict with any other provisions of this Agreement, the
provisions of this Section 5.07 shall control; and

(d)        the rights of the Beneficial Holders shall be exercised only through the Clearing Agency and the DTC Participants and
shall be limited to those established by law and agreements between such Beneficial Holders and the Clearing Agency and/or the DTC Participants. Pursuant to the Depositary Agreement, unless and until Definitive Certificates are issued pursuant to Section 5.09, the
initial Clearing Agency will make book-entry transfers among the DTC Participants and receive and transmit distributions of principal and interest on the related Class of Book-Entry Certificates to such DTC Participants.

For purposes of any provision of this Agreement requiring or permitting actions with the consent of, or at the direction of, Holders of Book-Entry Certificates evidencing a specified
Percentage Interest, such direction or consent may be given by the Clearing Agency at the direction of Beneficial Holders owning Book-Entry Certificates evidencing the requisite Percentage Interest represented by the Book-Entry Certificates. The Clearing Agency may
take conflicting actions with respect to the Book-Entry Certificates to the extent that such actions are taken on behalf of the Beneficial Holders.

Section 5.08          Notices
to Clearing Agency

. Whenever notice or other communication to the Certificateholders is required under this Agreement, unless and until Definitive Certificates shall have been issued to the related
Certificateholders pursuant to Section 5.09, the Trustee shall give all such notices and communications specified herein to be given to Holders of the Book-Entry Certificates to the Clearing Agency which shall give such notices and communications to the related DTC
Participants in accordance with its applicable rules, regulations and procedures.

Section 5.09         
Definitive Certificates

. If (a) the Clearing Agency or the Servicer notifies the Trustee in writing that the Clearing Agency is no longer willing or able to discharge properly its responsibilities under the
Depositary Agreement with respect to the Book-Entry Certificates and the Trustee or the Servicer is unable to locate a qualified successor, (b) the Servicer, to the extent permitted by law, advises the Trustee in writing that it elects to terminate the book-entry
system with respect to the Book-Entry Certificates through the Clearing Agency or (c) after the occurrence of an Event of Default, Certificateholders holding Book-Entry Certificates evidencing Percentage Interests aggregating not less than 662⁄3% of the aggregate
Certificate Principal Balance of such Certificates advise the Trustee and the Clearing Agency through DTC Participants in writing that the continuation of a book-entry system with respect to the Book-Entry Certificates through the Clearing Agency is no longer in the
best interests of the Certificateholders with respect to such Certificates, the Trustee shall notify all Certificateholders of Book-Entry Certificates of the occurrence of any such event and of the availability of Definitive Certificates. Upon surrender to the
Trustee of the Book-Entry Certificates by the Clearing Agency, accompanied by registration instructions from the Clearing Agency for registration, the Trustee on behalf of the Trust shall execute and the Trustee or any Authenticating Agent shall authenticate and
deliver the Definitive Certificates. Neither the Company, the Servicer, the Trust nor the Trustee shall be liable for any delay in delivery of such instructions and may conclusively rely on, and shall be protected in relying on, such instructions. Upon the issuance
of Definitive Certificates for all of the Certificates all references herein to obligations imposed upon or to be performed by the Clearing Agency shall be deemed to be imposed upon and performed by the Trustee, to the extent applicable with respect to such
Definitive Certificates, and the Trustee shall recognize the Holders of Definitive Certificates as Certificateholders hereunder.

Section 5.10          Office
for Transfer of Certificates

. The Trustee on behalf of the Trust shall maintain an office or agency where Certificates may be surrendered for registration of transfer or exchange. The Corporate Trust Office is initially
designated for said purposes.

Section 5.11          Nature of
Certificates

. The Certificates shall be personal property giving only the rights specifically set forth therein and in this Agreement.  The Certificates shall have no preemptive or similar rights
and when issued and delivered to the Holders against payment of the purchase price therefor will be fully paid and nonassessable by the Trust.  The Holders of the Certificates, in their capacities as such, shall be entitled to the same limitation of personal
liability extended to stockholders of private corporations for profit organized under the General Corporation Law of the State of Delaware. THE RECEIPT AND ACCEPTANCE OF A CERTIFICATE OR ANY INTEREST THEREIN BY OR ON BEHALF OF A HOLDER OR ANY BENEFICIAL OWNER,
WITHOUT ANY SIGNATURE OR FURTHER MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE HOLDER AND ALL OTHERS HAVING A BENEFICIAL INTEREST IN SUCH CERTIFICATE OF ALL THE TERMS AND PROVISIONS OF THIS AGREEMENT, AND SHALL CONSTITUTE THE AGREEMENT
OF THE TRUST, SUCH HOLDER AND SUCH OTHERS THAT THE TERMS AND PROVISIONS OF THIS AGREEMENT SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS BETWEEN THE TRUST AND SUCH HOLDER AND SUCH OTHERS.

ARTICLE VI

The Company and the Servicer

Section 6.01          Liability of the Company and the Servicer

. Each of the Company and the Servicer shall be liable in accordance herewith only to the extent of the obligations specifically imposed upon and undertaken by the Company or the Servicer, as
applicable, herein.

Section 6.02          Merger or Consolidation of the Company or the Servicer

. Any Corporation into which either the Company or the Servicer may be merged or consolidated, or any Corporation resulting from any merger, conversion or consolidation to which either the
Company or the Servicer shall be a party, or any Corporation succeeding to the business of either the Company or the Servicer, shall be the successor of the Company or the Servicer, as applicable, 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.

Section 6.03          Limitation on Liability of the Company, the Servicer and Others

. Neither the Company nor the Servicer nor any of the directors, officers, employees or agents of the Company or the Servicer shall be under any liability to the Trust, the Holders of the
REMIC I Regular Interests, REMIC II Regular Interests, REMIC III Regular Interests, Class L6-SW Regular Interest or the Certificateholders for any action taken by such Person or for such Person’s 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 Company, the Servicer or any such Person against any liability which would otherwise be imposed by reason of willful misfeasance, bad faith or gross
negligence in the performance of duties or by reason of reckless disregard of duties and obligations hereunder. Each of the Company, the Servicer and any director, officer, employee or agent of the Company or the Servicer, as applicable, may rely in good faith on any
document of any kind properly executed and submitted by any Person respecting any matters arising hereunder. Each of the Company, the Servicer and any director, officer, employee or agent of the Company or the Servicer, as applicable, shall be indemnified by the
Trust and held harmless against any loss, liability or expense incurred in connection with any legal action relating to this Agreement or the Certificates, other than any loss, liability or expense relating to any Mortgage Loan (other than as otherwise permitted in
this Agreement) or incurred by reason of willful misfeasance, bad faith or gross negligence in the performance of duties hereunder or by reason of reckless disregard of obligations and duties hereunder. Neither the Company nor the Servicer shall be under any
obligation to appear in, prosecute or defend any legal action which is not incidental to its duties related to the Mortgage Loans in accordance with this Agreement and which in its opinion may involve it in any expense or liability; provided, however, that
each of the Company and the Servicer may in its discretion undertake any such action which it may deem necessary or desirable with respect to the Mortgage Loans, this Agreement, the Certificates or the rights and duties of the parties hereto and the interests of the
Certificateholders hereunder. In such event, the legal expenses and costs of such action and any liability resulting therefrom shall be expenses, costs and liabilities of the Trust and the Company and the Servicer shall be entitled to be reimbursed, as applicable,
therefor out of the Collection Account and/or the Distribution Account, as provided by Section 3.11.

Section 6.04          Neither the Company nor the Servicer May Resign

. Neither the Company nor the Servicer shall resign from its respective obligations and duties hereby imposed on it, as applicable, except upon determination by the Company or the Servicer
that its respective duties hereunder are no longer permissible under applicable law.  Any such determination permitting the resignation of the Company or the Servicer shall be evidenced by an Opinion of Counsel to such effect delivered to the Trustee. No such
resignation shall become effective until the Trustee or a successor Servicer shall have assumed the Servicer’s responsibilities and obligations in accordance with Section 7.02 hereof.

The Servicer shall give prompt written notice to the Company of any information received by the Servicer which affects or relates to an ongoing obligation or right of the Company under this
Agreement.

Section 6.05          Trustee Access

. The Servicer shall afford the Company and the Trustee, upon reasonable notice, during normal business hours access to all records maintained by the Servicer, in respect of the Mortgage
Loans and in respect of its rights and obligations hereunder and access to such of its officers as are responsible for such obligations.  Upon reasonable request, the Servicer, shall furnish the Company and the Trustee with its most recent financial statements
(or, for so long as Washington Mutual Bank is the Servicer, the most recent consolidated financial statements for Washington Mutual Bank appearing in the audited financial statements of Washington Mutual, Inc., or the entity with whose financial statements the
financial statements of Washington Mutual Bank are consolidated) and such other information as it possesses, and which it is not prohibited by law or, to the extent applicable, binding obligations to third parties with respect to confidentiality, from disclosing,
regarding its business, affairs, property and condition, financial or otherwise.

ARTICLE VII

Default

Section 7.01          Events of Default.

“Event of Default,” wherever used herein, means any one of the following events:

(i)         any failure by the Servicer to remit to the Trustee for distribution to the Certificateholders any payment (other
than an Advance required to be made from its own funds on any Servicer Remittance Date pursuant to Section 4.02) required to be made under the terms of the Certificates and this Agreement which continues unremedied for a period of one Business Day after the date
upon which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Company, the Trustee (in which case notice shall be provided by telecopy), or to the Servicer, the Company and the Trustee by the NIMS Insurer
or the Holders of Certificates entitled to at least 25% of the Voting Rights; or

(ii)        any failure on the part of the Servicer duly to observe or perform in any material respect any of the covenants or
agreements on the part of the Servicer contained in this Agreement which continues unremedied for a period of 45 days (30 days in the case of any failure to maintain a Sub‐Servicing Agreement with an eligible Sub‐Servicer to the extent required in
accordance with Section 3.02(c)) after the earlier of (i) the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Company or the Trustee, or to the Servicer, the Company and the
Trustee by the NIMS Insurer or the Holders of Certificates entitled to at least 25% of the Voting Rights and (ii) actual knowledge of such failure by a Servicing Officer of the Servicer; or

(iii)       a decree or order of a court or agency or supervisory authority having jurisdiction in the premises in an involuntary case
under any present or future federal or state bankruptcy, insolvency or similar law or the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceeding, or for the
winding‐up or liquidation of its affairs, shall have been entered against the Servicer and if such proceeding is being contested by the Servicer in good faith, such decree or order shall have remained in force undischarged or unstayed for a period of 60 days or
results in the entry of an order for relief or any such adjudication or appointment; or

(iv)       the Servicer shall consent to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of
debt, marshaling of assets and liabilities or similar proceedings of or relating to it or of or relating to all or substantially all of its property; or

(v)        the Servicer shall admit in writing its inability to pay its debts generally as they become due, file a petition to take
advantage of any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors; or

(vi)       any failure of the Servicer to make any Advance on any Servicer Remittance Date required to be made from its own funds
pursuant to Section 4.03 which continues unremedied until the opening of business on the Business Day immediately following the Servicer Remittance Date.

If an Event of Default described in clauses (i) through (v) of this Section shall occur, then, and in each and every such case, so long as such Event of Default shall not have been
remedied, the Company or the Trustee may, and at the written direction of the NIMS Insurer or the Holders of Certificates entitled to at least 51% of Voting Rights, the Trustee shall, by notice in writing to the NIMS Insurer and the Servicer (and to the Company if
given by the Trustee or to the Trustee if given by the Company), terminate all of the rights and obligations of the Servicer in its capacity as Servicer under this Agreement, to the extent permitted by law, and in and to the Mortgage Loans and the proceeds
thereof. 

If an Event of Default described in clause (vi) of this Section 7.01 shall occur, the Trustee shall, by notice in writing to the Servicer, which may be delivered by telecopy, immediately
suspend all of the rights and obligations of the Servicer thereafter arising under this Agreement, but without prejudice to any rights it may have as a Certificateholder or to reimbursement of advances, and the Trustee shall act as provided in Section 7.02 to carry
out the duties of the Servicer, including the obligation to make any Advance the nonpayment of which was an Event of Default described in clause (vi) of this Section 7.01.  Any such action taken by the Trustee must be prior to the distribution on the
relevant Distribution Date.  If the Servicer shall within two Business Days following such suspension remit to the Trustee the amount of any Advance (plus interest accrued thereon at a per annum rate equal to the prime rate for United States money center
commercial banks as published in The Wall Street Journal) the nonpayment of which by the Servicer was an Event of Default described in clause (vi) of this Section 7.01, the Trustee, subject to the last sentence of this paragraph, shall permit the
Servicer to resume its rights and obligations as Servicer hereunder.  The Servicer agrees that it will reimburse the Trustee for actual, necessary and reasonable costs incurred by the Trustee because of action taken pursuant to clause (vi) of this Section 7.01.
The Servicer agrees that if an Event of Default as described in clause (vi) of this Section 7.01 shall occur more than two times in any twelve month period, the Trustee shall be under no obligation to permit the Servicer to resume its rights and obligations as
Servicer hereunder.  If the Servicer does not remit to the Trustee the amount of such Advance within two Business Days following such suspension, the Trustee, shall, by notice in writing to the Servicer (delivered immediately by facsimile and effective on the
date of acknowledgement of receipt), the NIMS Insurer and the Company, terminate all of the rights and obligations of the Servicer in its capacity as Servicer under this Agreement and in and to the Mortgage Loans and the proceeds thereof. 

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 Certificates (other than as a Holder
of any Certificate) or the Mortgage Loans or otherwise, shall pass to and be vested in the Trustee pursuant to and under this Section and, without limitation, the Trustee is hereby authorized and empowered, as attorney‐in‐fact or otherwise, to
execute and deliver on behalf of and at the expense of the Servicer, 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 Servicer agrees, at its sole cost and expense, promptly (and in any event no later than ten Business Days subsequent to such notice) to provide the Trustee
with all documents and records requested by it to enable it to assume the Servicer’s functions under this Agreement, and to cooperate with the Trustee in effecting the termination of the Servicer’s responsibilities and rights under this Agreement,
including, without limitation, the transfer within one Business Day to the Trustee for administration by it of all cash amounts which at the time shall be or should have been credited by the Servicer to the Collection Account held by or on behalf of the Servicer, or
any REO Account or Servicing Account held by or on behalf of the Servicer or thereafter be received with respect to the Mortgage Loans or any REO Property (provided, however, that the Servicer shall continue to be entitled to receive all amounts accrued
or owing to it under this Agreement on or prior to the date of such termination, whether in respect of Advances or otherwise, and shall continue to be entitled to the benefits of Section 6.03, notwithstanding any such termination, with respect to events
occurring prior to such termination).  For purposes of this Section 7.01, the Trustee shall not be deemed to have knowledge of a Event of Default unless a Responsible Officer of Trustee assigned to and working in the Trustee’s Corporate Trust Office
has actual knowledge thereof or unless written notice of any event which is in fact such a Event of Default is received by the Trustee and such notice references the Certificates, any of the Trust REMICs or this Agreement.

The Trustee shall be entitled to be reimbursed by the Servicer (or by the Trust Fund if the Servicer is unable to fulfill its obligations hereunder) for all costs associated with the transfer
of servicing from the predecessor 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 Trustee to
correct any errors or insufficiencies in the servicing data or otherwise to enable the Trustee to service the Mortgage Loans properly and effectively.

Section 7.02          Trustee to Act; Appointment of Successor.

On and after the time the Servicer receives a notice of termination, the Trustee shall be the successor in all respects to the Servicer in its capacity as Servicer
under this Agreement and the transactions set forth or provided for herein and shall be subject to all the responsibilities, duties and liabilities relating thereto and arising thereafter, which shall be assumed by the Trustee (except for any representations or
warranties of the Servicer under this Agreement and its obligation to deposit amounts in respect of losses pursuant to Section 3.12) by the terms and provisions hereof including, without limitation, the Servicer’s obligations to make Advances pursuant to
Section 4.02; provided, however, that if the Trustee is prohibited by law or regulation from obligating itself to make advances regarding delinquent Mortgage Loans, then the Trustee shall not be obligated to make Advances pursuant to
Section 4.02; and provided further, that any failure to perform such duties or responsibilities caused by the Servicer’s failure to provide information required by Section 7.01 shall not be considered a default by the Trustee as successor to
the Servicer hereunder; provided, however, it is understood and acknowledged by the parties that there will be a period of transition (not to exceed 90 days) before the servicing transfer is fully effected.  As compensation therefor, the Trustee
shall be entitled to the Servicing Fee and all funds relating to the Mortgage Loans to which the Servicer would have been entitled if it had continued to act hereunder (other than amounts which were due or would become due to the Servicer prior to its termination or
resignation).  Notwithstanding anything herein to the contrary, in no event shall the Trustee be liable for any Servicing Fee or for any differential in the amount of the Servicing Fee paid hereunder and the amount necessary to induce any successor Servicer to
act as successor Servicer under this Agreement and the transactions set forth or provided for herein.  After the Servicer receives a notice of termination, notwithstanding the above and subject to the next paragraph, the Trustee may, if it shall be unwilling to
so act, or shall, if it is unable to so act or if it is prohibited by law from making advances regarding delinquent Mortgage Loans, or if the NIMS Insurer or the Holders of Certificates entitled to at least 51% of the Voting Rights so request in writing to the
Trustee, promptly appoint, or petition a court of competent jurisdiction to appoint, an established mortgage loan servicing institution acceptable to each Rating Agency, having a net worth of not less than $15,000,000 and reasonably acceptable to the NIMS Insurer, as
the successor to the Servicer under this Agreement in the assumption of all or any part of the responsibilities, duties or liabilities of the Servicer under this Agreement.

No appointment of a successor to the Servicer under this Agreement shall be effective until the assumption by the successor of all of the Servicer’s responsibilities, duties and
liabilities hereunder.  In connection with such appointment and assumption described herein, the Trustee may make such arrangements for the compensation of such successor out of payments on Mortgage Loans as it and such successor shall agree; provided,
however, that no such compensation shall be in excess of that permitted the Servicer as such hereunder.  The Company, the Trustee and such successor shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such
succession.  Pending appointment of a successor to the Servicer under this Agreement, the Trustee shall act in such capacity as hereinabove provided.

In connection with the termination or resignation of the Servicer hereunder, either (i) the successor Servicer, including the Trustee if the Trustee is acting as successor Servicer, shall
represent and warrant that it is a member of MERS in good standing and shall agree to comply in all material respects with the rules and procedures of MERS in connection with the servicing of the Mortgage Loans that are registered with MERS, in which case the
predecessor Servicer shall cooperate with the successor Servicer in causing MERS to revise its records to reflect the transfer of servicing to the successor Servicer as necessary under MERS’ rules and regulations, or (ii) the predecessor Servicer shall
cooperate with the successor Servicer in causing MERS to execute and deliver an assignment of Mortgage in recordable form to transfer the Mortgage from MERS to the Trustee and to execute and deliver such other notices, documents and other instruments as may be
necessary or desirable to effect a transfer of such Mortgage Loan or servicing of such Mortgage Loan on the MERS® System to the successor Servicer. The predecessor Servicer shall file or cause to be filed any such assignment in the appropriate recording office.
The predecessor Servicer shall bear any and all fees of MERS, costs of preparing any assignments of Mortgage, and fees and costs of filing any assignments of Mortgage that may be required under this Section 7.02(a).

Upon removal or resignation of the Servicer, the Trustee, with the cooperation of the Company, (x) shall solicit bids for a successor Servicer as described below and (y) pending the
appointment of a successor Servicer as a result of soliciting such bids, shall serve as Servicer of the Mortgage Loans serviced by such predecessor Servicer.  The Trustee shall solicit, by public announcement, bids from housing and home finance institutions,
banks and mortgage servicing institutions meeting the qualifications set forth in the first paragraph of this Section 7.02 (including the Trustee or any affiliate thereof).  Such public announcement shall specify that the successor Servicer shall be entitled to
the servicing compensation agreed upon between the Trustee, the successor Servicer and the Company; provided, however, that no such fee shall exceed the Servicing Fee.  Within thirty days after any such public announcement, the Trustee with the
cooperation of the Company, shall negotiate in good faith and effect the sale, transfer and assignment of the servicing rights and responsibilities hereunder to the qualified party submitting the highest satisfactory bid as to the price they will pay to obtain such
servicing.  The Trustee, upon receipt of the purchase price shall pay such purchase price to the Servicer being so removed, after deducting from any sum received by the Trustee from the successor to the Servicer in respect of such sale, transfer and assignment
all costs and expenses of any public announcement and of any sale, transfer and assignment of the servicing rights and responsibilities reasonably incurred hereunder.  After such deductions, the remainder of such sum shall be paid by the Trustee to the Servicer
at the time of such sale.

Section 7.03          Notification to Certificateholders.

(a)                Upon any
termination of the Servicer pursuant to Section 7.01 above or any appointment of a successor to the Servicer pursuant to Section 7.02 above, the Trustee shall give prompt written notice thereof to Certificateholders at their respective addresses appearing
in the Certificate Register and to the NIMS Insurer. 

(b)               Not later than the
later of 60 days after the occurrence of any event, which constitutes or which, with notice or lapse of time or both, would constitute a Event of Default or five days after a Responsible Officer of the Trustee becomes aware of the occurrence of such an event, the
Trustee shall transmit by mail to all Holders of Certificates and to the NIMS Insurer notice of each such occurrence, unless such default or Event of Default shall have been cured or waived.

Section 7.04          Waiver of Servicer Events of Default

.  The Holders representing at least 66% of the Voting Rights evidenced by all Classes of Certificates affected by any default or Event of Default hereunder may, with the consent
of the NIMS Insurer, waive such default or Event of Default; provided, however, that a default or Event of Default under clause (i) or (vii) of Section 7.01 may be waived only by all of the Holders of the Regular Certificates and the NIMS
Insurer (as evidenced by the written consent of the NIMS Insurer).  Upon any such waiver of a default or Event of Default, such default or Event of Default shall cease to exist and shall be deemed to have been remedied for every purpose hereunder.  No such
waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon except to the extent expressly so waived.

ARTICLE VIII

Concerning the Trustees

Section 8.01          Duties of Trustees.

(a)                The Trustee,
prior to the occurrence of an Event of Default and after the curing of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Agreement. In case an Event of Default has occurred
(which has not been cured or waived) the Trustee shall exercise such of the rights and powers vested in it by this Agreement, and use the same degree of care and skill in its exercise as a prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs.

(b)               The Trustee, upon
receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or other instruments furnished to it which are specifically required to be furnished to it pursuant to any provision of this Agreement, shall examine them to determine whether
they are in the form required by this Agreement; provided, however, that the Trustee shall not be responsible for the accuracy or content of any such certificate, statement, opinion, report, or other order or instrument furnished by the Company or
Servicer to the Trustee pursuant to this Agreement.

(c)                No provision of
this Agreement shall be construed to relieve the Trustee or the Delaware Trustee from liability for its own negligent action, its own negligent failure to act or its own willful misconduct; provided, however, that:

(i)                  Prior to the occurrence of an
Event of Default and after the curing of all such Events of Default which may have occurred, the duties and obligations of the Trustee shall be determined solely by the express provisions of this Agreement,

(ii)                Neither the Trustee nor the Delaware
Trustee shall 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 Trustee or the Delaware Trustee, and, in the absence
of bad faith on the part of the Trustee or the Delaware Trustee, such trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to such trustee and conforming to
the requirements of this Agreement; and

(iii)               Neither the Trustee nor the Delaware Trustee
shall be personally liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the NIMS Insurer or the Certificateholders holding Certificates which evidence Percentage Interests aggregating not less than
25% of REMIC III relating to the time, method and place of conducting any proceeding for any remedy available to such trustee, or relating to the exercise of any trust or power conferred upon such trustee under this Agreement.

(d)               Within ten Business
Days after the occurrence of any Event of Default known to the Trustee, the Trustee shall transmit by mail to the Rating Agencies notice of each Event of Default. Within 90 days after the occurrence of any Event of Default known to the Trustee, the Trustee shall
transmit by mail to all Certificateholders (with a copy to the Rating Agencies) notice of each Event of Default, unless such Event of Default shall have been cured or waived; provided, however, the Trustee shall be protected in withholding such notice
if and so long as a Responsible Officer of the Trustee in good faith determines that the withholding of such notice is in the best interests of the Certificateholders; and provided, further, that in the case of any Event of Default of the character
specified in Section 7.01(i) or Section 7.01(ii) no such notice to Certificateholders or to the Rating Agencies shall be given until at least 30 days after the occurrence thereof.

Section 8.02          Certain Matters Affecting the Trustees

. Except as otherwise provided in Section 8.01:

(i)         Each of the Trustee and the Delaware Trustee may request and rely upon and shall be
protected in acting or refraining from acting upon any resolution, Officer’s Certificate, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document
believed by it to be genuine and to have been signed or presented by the proper party or parties;

(ii)        Each of the Trustee and the Delaware Trustee may consult with counsel and any Opinion of Counsel
shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in accordance with such Opinion of Counsel;

(iii)       Neither the Trustee nor the Delaware Trustee shall be personally liable for any action taken or
omitted by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Agreement;

(iv)       Prior to the occurrence of an Event of Default hereunder and after the curing of all Events of Default
which may have occurred, neither the Trustee nor the Delaware Trustee shall be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or
other paper or document, unless requested in writing to do so by the NIMS Insurer or the Holders of Certificates evidencing Percentage Interests aggregating not less than 25% of REMIC III; provided, however, that if the payment within a reasonable time to the
Trustee or the Delaware Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of such trustee, not reasonably assured to such trustee by the security, if any, afforded to it by the terms of
this Agreement, such trustee may require reasonable indemnity against such expense or liability as a condition to proceeding;

(v)        Each of the Trustee and the Delaware Trustee may execute the trust or any of the powers hereunder
or perform any duties hereunder either directly or by or through agents or attorneys selected by it with reasonable care or designated by the Servicer;

(vi)       Neither the Trustee nor the Delaware Trustee shall be deemed to have knowledge or notice of any
matter, including without limitation an Event of Default, unless actually known by a Responsible Officer, or unless written notice thereof referencing this Agreement or the Certificates is received at the Notice Address of such trustee;

(vii)      In no event shall the Trustee or the Delaware Trustee be held liable for acts or omissions of the Servicer
or the other trustee (excepting the Trustee’s own actions as Servicer).  No provision of this Agreement shall require the Trustee or the Delaware Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any
of its duties hereunder (except for the giving of required notices), or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing the repayment of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it;

(viii)      When the Trustee is acting as Servicer pursuant to Section 7.02, and to the extent permitted under
applicable law, the Trustee is hereby authorized, in making or disposing of any investment permitted hereunder, to deal with itself (in its individual capacity) or with any one or more of its affiliates, whether it or its affiliate is acting as an agent of the
Trustee or of any third person or dealing as principal for its own account; and

(ix)       Except as expressly provided in this Agreement, in no event shall the Trustee be under any duty or
obligation to monitor, determine, investigate or compel compliance by the Trust with the requirements of the Statutory Trust Statute.

(x)        In no event shall the Trustee be obligated or responsible for preparing, executing, filing or
delivering in respect of the Trust or another party either any report or filing required by the Commission to be prepared, executed, filed or delivered in respect of the Trust or another party.

Section 8.03          Trustees Not Liable for Certificates or Mortgage Loans

. The recitals contained herein (other than those relating to the due organization, power and authority of the Trustee and the Delaware Trustee) and in the Certificates (other than the
execution of, and certificate of authentication on, the Certificates) shall not be taken as the statements of the Trustee or the Delaware Trustee, and neither the Trustee nor the Delaware Trustee assumes any responsibility for their correctness. Neither the Trustee
nor the Delaware Trustee makes any representations as to the validity or sufficiency of this Agreement, the Mortgage Loan Purchase Agreement or of the Certificates or any Mortgage Loan. Neither the Trustee nor the Delaware Trustee shall be accountable for the use or
application by the Company, the Servicer or the Trust, as applicable, of any of the Certificates or of the proceeds of such Certificates, or for the use or application of any funds paid to the Servicer or the Company in respect of the Mortgage Loans or deposited into
the Collection Account, the Investment Account or the Distribution Account by the Servicer or the Company.

Section 8.04          Trustees May Own Certificates

. The Trustee, the Delaware Trustee or any agent or affiliate of such trustee, in its individual or any other capacity, may become the owner or pledgee of Certificates with the same rights it
would have if it were not trustee.

Section 8.05          Trustees’ Fees and Expenses

. On the Closing Date, the Servicer shall pay to the Trustee as specified in a separate agreement between the Servicer and the Trustee.  The Trustee shall withdraw from the Distribution
Account on each Distribution Date and pay to itself the Trustee Fee for such Distribution Date and any earnings (net of losses) on amounts on deposit in the Distribution Account.  The right to receive the Trustee Fee may not be transferred in whole or in part
except in connection with the transfer of all of the Trustee’s responsibilities and obligations under this Agreement.  Subject to separate written agreements with the Delaware Trustee, the Servicer covenants and agrees to, and the Servicer shall, pay the
Delaware Trustee from time to time, and the Delaware Trustee shall be entitled to payment for all services rendered by it in the exercise and performance of any of the powers and duties hereunder of the Delaware Trustee. Except as otherwise expressly provided herein,
the Servicer shall pay or reimburse each of the Trustee and the Delaware Trustee upon such trustee’s request for all reasonable expenses and disbursements incurred or made by such trustee in accordance with any of the provisions of this Agreement, including any
such expenses incurred or made in connection with a transfer of servicing, and shall indemnify the institution acting as such trustee, both in its individual capacity and as trustee, from any loss, liability or expense incurred by it hereunder (including the
reasonable compensation and the expenses and disbursements of its counsel and of all persons not regularly in its employ and any expenses which arise out of or are imposed upon the Trustee or the Delaware Trustee in connection with the creation, operation or
termination of the Trust) except any such expense or disbursement as may arise from its own negligence or bad faith. Such obligation shall survive the termination of this Agreement or resignation or removal of the Trustee or the Delaware Trustee. The Trustee shall,
at its expense, prepare or cause to be prepared all federal and state income tax and franchise tax and information returns relating to REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC VI required to be prepared or filed by the Trustee or the Delaware Trustee
and shall indemnify the Delaware Trustee for any liability of such trustees arising from any error in such returns.

Section 8.06          Eligibility Requirements for Trustees

. The Trustee hereunder shall at all times be (i) an institution insured by the FDIC, (ii) a Corporation organized and doing business under the laws of the United States of America or of any
state, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of not less than $50,000,000 and subject to supervision or examination by federal or state authority and (iii) acceptable to the Rating Agencies. If such
Corporation publishes reports of condition at least annually, pursuant to law or to the requirements of any aforementioned supervising or examining authority, then for the purposes of this Section 8.06, 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.  The Delaware Trustee hereunder shall at all times have its principal place of business in the State of Delaware and shall satisfy the applicable
requirements under the laws of the State of Delaware authorizing it to act as the Delaware trustee of the Trust.  In case at any time the Trustee or the Delaware Trustee shall cease to be eligible in accordance with the provisions of this Section 8.06, such
trustee shall resign immediately in the manner and with the effect specified in Section 8.07.

Section 8.07          Resignation and Removal of Trustees

. Each of the Trustee and the Delaware Trustee may at any time resign and be discharged from the trust hereby created by giving written notice thereof to the Servicer, the Company, the
Certificateholder and the NIMS Insurer. Upon receiving such notice of resignation, the Servicer shall promptly appoint a successor trustee by written instrument, in duplicate, a copy of which instrument shall be delivered to the resigning trustee, the successor
trustee and the NIMS Insurer. If no successor trustee shall have been so appointed and shall have accepted appointment within 30 days after the giving of such notice of resignation, the resigning trustee may petition any court of competent jurisdiction for the
appointment of a successor trustee.

If at any time the Trustee or the Delaware Trustee shall cease to be eligible in accordance with the provisions of Section 8.06 and shall fail to resign after written request therefor by the
Servicer or the NIMS Insurer, or if at any time the Trustee or the Delaware Trustee shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or a receiver of such trustee or of its property shall be appointed, or any public officer shall take
charge or control of such trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Servicer, with the consent of the NIMS Insurer, or the NIMS Insurer may remove such trustee and appoint a successor trustee by
written instrument, in triplicate, copies of which instrument shall be delivered to the trustee so removed, the trustee continuing in its capacity and the successor trustee.

The Holders of Certificates evidencing Percentage Interests aggregating more than 50% of REMIC III, with the consent of the NIMS Insurer, may at any time remove the Trustee or the Delaware
Trustee and appoint a successor trustee by written instrument or instruments, in triplicate, signed by the NIMS Insurer or such Holders or their attorneys in-fact duly authorized, one complete set of which instruments shall be delivered to the Servicer, one complete
set to the Trustee so removed, one complete set to the successor so appointed and one complete set to the NIMS Insurer.

Any resignation or removal of the Trustee or the Delaware Trustee and appointment of a successor trustee pursuant to any of the provisions of this Section 8.07 shall become effective upon
acceptance of appointment by the successor trustee as provided in Section 8.08. Any expenses associated with the resignation of the Trustee or the Delaware Trustee shall be borne by such trustee, and any expenses associated with the removal of the Trustee or the
Delaware Trustee shall be borne by the Servicer.

Section 8.08          Successor Trustee

.  Any successor trustee appointed as provided in Section 8.07 shall execute, acknowledge and deliver to the Servicer and to its predecessor trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the predecessor trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of
its predecessor hereunder, with like effect as if originally named as Trustee or Delaware Trustee herein. The predecessor shall deliver to the successor trustee all Mortgage Files, related documents, statements and all other property held by it hereunder, and the
Servicer and the predecessor trustee shall execute and deliver such instruments and do such other things as may reasonably be required for more fully and certainly vesting and confirming in the successor trustee all such rights, powers, duties and
obligations.

No successor trustee shall accept appointment as provided in this Section 8.08 unless at the time of such appointment such successor trustee shall be eligible under the provisions of Section
8.06 and the appointment of such successor trustee shall not result in a downgrading of the ratings of any of the Other NIM Notes or of any Class of Certificates or of the shadow ratings of the Insured NIM Notes (without giving effect to any insurance policy issued
by the NIMS Insurer) by any Rating Agency, as evidenced by a letter from each Rating Agency. 

Upon acceptance of appointment by a successor trustee as provided in this Section 8.08, the Servicer shall mail notice of the succession of such trustee hereunder to (i) all Certificateholders
at their addresses as shown in the Certificate Register, (ii) the Rating Agencies and (iii) the NIMS Insurer. If the Servicer fails to mail such notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall cause such
notice to be mailed.

Section 8.09          Merger or Consolidation of Trustee

.  Any Corporation into which the Trustee or the Delaware Trustee may be merged or converted or with which it may be consolidated, or any Corporation resulting from any merger,
conversion or consolidation to which the Trustee or the Delaware Trustee shall be a party, or any Corporation succeeding to the corporate trust business of such trustee, shall be the successor of such trustee hereunder, provided such resulting or successor
Corporation shall be eligible under the provisions of Section 8.06, 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.

Section 8.10          Appointment of Co-Trustee or Separate Trustee

.  Notwithstanding any other provisions hereof, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the assets of the Trust may at the
time be located, the Servicer and the Trustee or the Delaware Trustee, as applicable, acting jointly shall have the power and shall execute and deliver all instruments to appoint one or more Persons approved by such trustee and the NIMS Insurer to act as co-trustee
or co-trustees, jointly with such trustee, or separate trustee or separate trustees, of all or any part of the assets of the Trust and to vest in such Person or Persons, in such capacity, such title to the assets of the Trust, or any part thereof, and, subject to the
other provisions of this Section 8.10, such powers, duties, obligations, rights and trusts as the Servicer and the Trustee or the Delaware Trustee, as applicable, may consider necessary or desirable; provided, that the Trustee or the Delaware Trustee, as
applicable, shall remain liable for all of its obligations and duties under this Agreement. If the Servicer shall not have joined in such appointment, or the NIMS Insurer has not approved such appointment, within 15 days after the receipt by it of a request so to do,
or in case an Event of Default shall have occurred and be continuing, the Trustee or the Delaware Trustee, as applicable, alone shall have the power to make such appointment; provided, that such trustee shall remain liable for all of its obligations and duties
under this Agreement. No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 8.06 hereunder and no notice to Certificateholders of the appointment of co-trustee(s) or separate trustee(s)
shall be required under Section 8.08 hereof.

In the case of any appointment of a co-trustee or separate trustee pursuant to this Section 8.10, all rights, powers, duties and obligations conferred or imposed upon the Trustee or the
Delaware Trustee, as applicable, shall be conferred or imposed upon and exercised or performed by the Trustee or the Delaware Trustee, as applicable, and such separate trustee or co-trustee jointly and severally, except to the extent that under any law of any
jurisdiction in which any particular act or acts are to be performed by the Trustee or the Delaware Trustee, as applicable, such 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 assets of the Trust or any portion thereof in any such jurisdiction) shall be exercised and performed by such separate trustee or co-trustee at the direction of the Trustee or the Delaware Trustee, as applicable.

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

Any separate trustee or co-trustee may, at any time, constitute the Trustee or the Delaware Trustee, as applicable, 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
the trust shall vest in and be exercised by the Trustee or the Delaware Trustee, as applicable, to the extent permitted by law, without the appointment of a new or successor trustee.

Section 8.11          Authenticating Agents

.  The Trustee may appoint one or more Authenticating Agents which shall be authorized to act on behalf of the Trustee in authenticating Certificates. Wherever reference is made in this
Agreement to the authentication of Certificates by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to include authentication on behalf of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent must be acceptable to the Servicer and the NIMS Insurer and must be a corporation, trust company or banking association organized and doing business under the laws of the United
States of America or of any state, having an office and place of business in New York, New York, having a combined capital and surplus of at least $15,000,000, authorized under such laws to do a trust business and subject to supervision or examination by federal or
state authorities.

Any corporation into which any Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation
to which any Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency business of any Authenticating Agent, shall continue to be the Authenticating Agent so long as it shall be eligible in accordance with the provisions of the
first paragraph of this Section 8.11 without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent.

Any Authenticating Agent may at any time resign by giving written notice of resignation to the Trustee, the NIMS Insurer and the Servicer. The Trustee may, upon prior written approval of the
Servicer and the NIMS Insurer, at any time terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent, the NIMS Insurer and to the Servicer. Upon receiving a notice of resignation or upon such a termination,
or in case at any time any Authenticating Agent shall cease to be eligible in accordance with the provisions of the first paragraph of this Section 8.11, the Trustee may appoint, upon prior written approval of the Servicer and the NIMS Insurer, a successor
Authenticating Agent, shall give written notice of such appointment to the Servicer and the NIMS Insurer and shall mail notice of such appointment to all Certificateholders. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers, duties and responsibilities of its predecessor hereunder, with like effect as if originally named as Authenticating Agent. Any reasonable compensation paid to an Authenticating Agent shall be a reimbursable expense pursuant to
Section 8.05 if paid by the Trustee.

Section 8.12          Paying Agents

.  The Trustee may appoint one or more Paying Agents which shall be authorized to act on behalf of the Trustee in making withdrawals from the Distribution Account, and distributions to
Certificateholders as provided in Article IV and Section 9.01(b) to the extent directed to do so by the Servicer and consented to by the NIMS Insurer. Wherever reference is made in this Agreement to the withdrawal from the Distribution Account by the Trustee, such
reference shall be deemed to include such a withdrawal on behalf of the Trustee by a Paying Agent. Whenever reference is made in this Agreement to a distribution by the Trustee or the furnishing of a statement to Certificateholders by the Trustee, such reference
shall be deemed to include such a distribution or furnishing on behalf of the Trustee by a Paying Agent. Each Paying Agent shall provide to the Trustee such information concerning the Distribution Account as the Trustee shall request from time to time. Each Paying
Agent must be reasonably acceptable to the Servicer and the NIMS Insurer and must be a corporation, trust company or banking association organized and doing business under the laws of the United States of America or of any state, having an office and place of
business in New York, New York, having a combined capital and surplus of at least $15,000,000, authorized under such laws to do a trust business and subject to supervision or examination by federal or state authorities.

Any corporation into which any Paying Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which
any Paying Agent shall be a party, or any corporation succeeding to the corporate agency business of any Paying Agent, shall continue to be the Paying Agent provided that such corporation after the consummation of such merger, conversion, consolidation or
succession meets the eligibility requirements of this Section 8.12.

Any Paying Agent may at any time resign by giving written notice of resignation to the Trustee, the NIMS Insurer and to the Servicer; provided, that the Paying Agent has returned to the
Distribution Account or otherwise accounted, to the reasonable satisfaction of the Servicer and the NIMS Insurer, for all amounts it has withdrawn from the Distribution Account. The Trustee may, upon prior written approval of the Servicer and the NIMS Insurer, at any
time terminate the agency of any Paying Agent by giving written notice of termination to such Paying Agent and to the Servicer and the NIMS Insurer. Upon receiving a notice of resignation or upon such a termination, or in case at any time any Paying Agent shall cease
to be eligible in accordance with the provisions of the first paragraph of this Section 8.12, the Trustee may appoint, upon prior written approval of the Servicer and the NIMS Insurer, a successor Paying Agent, shall give written notice of such appointment to the
Servicer and the NIMS Insurer and shall mail notice of such appointment to all Certificateholders. Any successor Paying Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers, duties and responsibilities of its predecessor
hereunder, with like effect as if originally named as Paying Agent. Any reasonable compensation paid to any Paying Agent shall be a reimbursable expense pursuant to Section 8.05 if paid by the Trustee.

Section 8.13          Duties of Delaware Trustee.

(a)                The Delaware
Trustee is appointed to serve as the trustee of the Trust in the State of Delaware for the sole purpose of satisfying the requirement of Section 3807(a) of the Statutory Trust Statute that the Trust have at least one trustee with a principal place of business in
Delaware.  It is understood and agreed by the parties hereto that the Delaware Trustee shall have none of the duties or liabilities of the Trustee.

(b)               The duties of the
Delaware Trustee shall be limited to (i) accepting legal process served on the Trust in the State of Delaware, (ii) the execution of any certificates with respect to the Trust required to be filed with the Secretary of State which the Delaware Trustee is required to
execute under Section 3811 of the Statutory Trust Statute and (iii) such other duties as are set forth in this Article VIII.  To the extent that, at law or in equity, the Delaware Trustee has duties (including fiduciary duties) and liabilities relating thereto
to the Trust or the Holders of the REMIC I Regular Interests, REMIC II Regular Interests or the Certificates, it is hereby understood and agreed by the parties hereto that such duties and liabilities are replaced by the duties and liabilities of the Delaware Trustee
expressly set forth in this Agreement.

Section 8.14          Amendment to Certificate of Trust

.  If at any time required by Section 3810 of the Statutory Trust Statute, the Trustee, the Delaware Trustee and any other trustee of the Trust shall cause an amendment to the
Certificate of Trust to be filed with the Secretary of State in accordance with the provisions of such Section 3810.

Section 8.15         
[Reserved]

Section 8.16          Trustees Act on Behalf of Trust

.  Except to the extent otherwise expressly provided herein, in the performance of its obligations under this Agreement, each of the Trustee and the Delaware Trustee shall at all times
be acting on behalf of the Trust or the Certificateholders, as applicable.

Section 8.17          Limitation of Liability

.  It is expressly understood and agreed by the parties hereto that (a) each of the representations, undertakings and agreements herein made on the part of the Trust is made and intended
not as personal representations, undertakings and agreements by the Trustee but is made and intended for the purpose of binding only the Trust and (b) under no circumstances shall the Trustee be personally liable for the payment of any indebtedness or expenses of the
Trust or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Trust under this Agreement.

Section 8.18          Trustee Report on Assessment of Compliance with Servicing Criteria

.  The Trustee shall, on or before the 90th day following each December 31 after the Cut-Off Date (or such earlier date as reasonably requested by the Servicer, but in no event earlier
than March 15), deliver to the Company and the Servicer the following documents, if so requested by the Servicer:

(a)                a report on its
assessment of compliance during the preceding calendar year with all applicable servicing criteria set forth in Item 1122(d) of Regulation AB with respect to asset-backed securities transactions taken as a whole involving the Trustee that are backed by assets of the
same type as the Mortgage Loans, as required by Item 1122 of Regulation AB; and

(b)               a report by a
registered public accounting firm that attests to, and reports on, the assessment made by the Trustee pursuant to clause (a) above, as required by Item 1122 of Regulation AB;

provided, however, that the Trustee shall only be required deliver the reports specified in Section 8.18 (a) and (b) with respect to
any year for which a Report on Form 10-K is required to be filed with the Commission on behalf of the Trust.  Promptly following December 31 of each year for which a Report on Form 10-K is so required to be filed, the Servicer shall advise the Trustee whether
the foregoing reports will be required of the Trustee.

ARTICLE IX

Termination

Section 9.01          Termination Upon Purchase by the Servicer or Liquidation of All Mortgage Loans.

(a)                The Servicer may, and if the Servicer
does not exercise such right, the NIMS Insurer may (the party exercising such right, the “Terminator”), purchase the outstanding Mortgage Loans, all property acquired by the Trust in respect of any Mortgage Loan and all other property included in any
REMIC formed under this Agreement at the price stated in clause (i) of the second paragraph of this Section 9.01(a) on or after the first date on which the aggregate Principal Balance of the Mortgage Loans is less than the Clean-Up Call Percentage of the aggregate
Principal Balance of the Mortgage Loans as of the Cut-Off Date; provided, however, that if the Terminator is the Servicer purchasing the Mortgage Loans and other property on its own behalf, the Servicer may not so purchase such outstanding Mortgage
Loans and property if the Termination Price stated in subclause (1) of such clause (i):  (A) exceeds the fair market value, determined by the Servicer in accordance with prudent industry practices, of such outstanding Mortgage Loans and property, less
unreimbursed Advances and Servicing Advances (other than Advances and Servicing Advances made with respect to Mortgage Loans as to which the Servicer expects that that foreclosure is not imminent), (B) will not result in distributions on the Certificates sufficient
(together with all amounts received under the Indenture other than on account of the Certificates) to pay all interest accrued on, as well as amounts necessary to pay in full the principal balance of, the NIM Notes and any amounts necessary to reimburse the NIMS
Insurer for all amounts paid under the NIMs insurance policy and any other amounts reimbursable or otherwise payable to the NIMS Insurer, in each case, with interest thereon at the applicable rate set forth in the Indenture and to the extent not previously reimbursed
or paid (unless the NIMS Insurer consents to a lesser Termination Price) and (C) will not result in distributions to the Swap Counterparty sufficient to pay in full all amounts payable by the Supplemental Interest Trust to the Swap Counterparty pursuant to the Swap
Agreement, including any Swap Termination Payment payable by the Supplemental Interest Trust including any interest on such Swap Termination Payment at the applicable rate set forth in the Swap Agreement from the Early Termination Date until such Swap Termination
Payment is paid.  If such right is exercised, the Terminator shall provide to the Trustee, the Delaware Trustee and the Company the written certification of an officer of the Terminator (which certification shall include a statement to the effect that all
amounts required to be paid in order to exercise such right have been deposited in the Certificate Account) and the Trustee on behalf of the Trust shall promptly execute all instruments as may be necessary to release and assign to the Terminator the Mortgage Loans,
all property acquired by the Trust in respect of any Mortgage Loan and all other property included in any REMIC formed under this Agreement.

Except as otherwise set forth in this Article IX, including, without limitation, the obligation of the Servicer to make payments to Certificateholders as hereafter set forth, the Trust and the
respective obligations and responsibilities of the Company, the Servicer, the Trustee and the Delaware Trustee created hereby shall terminate in accordance with Section 3808 of the Statutory Trust Statute upon:

(i)         the Distribution Date immediately following the exercise by the Terminator of its purchase option, set forth in the
first paragraph of this Section 9.01(a), of all Mortgage Loans, all property acquired by the Trust in respect of any Mortgage Loan by foreclosure, deed in lieu of foreclosure or otherwise, and all other property included in any REMIC formed under this Agreement at a
price (the “Termination Price”) equal to

(1)        In the case of the Servicer exercising the right on its own behalf, 100% of the aggregate Stated Principal Balance of
all the Mortgage Loans and accrued interest on the Stated Principal Balance of each such Mortgage Loan at the applicable Net Mortgage Rate in effect from time to time from the Due Date as to which interest was last paid by the related Mortgagor or by an advance by
the Servicer to but not including the first day of the month in which such purchase is to be effected, plus the appraised value of each REO Property, if any, such appraisal to be conducted by an appraiser selected by the Servicer in its reasonable discretion,
and

(2)        In all other cases, including in the case of the Servicer exercising the right on behalf of an unaffiliated third party,
the greater of

(A)       the aggregate Purchase Price of all the Mortgage Loans plus the appraised value of each REO Property, if any, such appraisal
to be conducted by an appraiser selected by the Terminator in its reasonable discretion, and

(B)       the aggregate fair market value of all of the assets of REMIC I (as determined by the Terminator, as of the close of business
on the third Business Day next preceding the date upon which notice of any such termination is furnished to Certificateholders pursuant to this Article IX),

plus in each case of clauses (i)(2)(A) and (B) any additional amounts necessary to pay all interest accrued on, as well as amounts necessary to pay in full the
principal balance of, the NIM Notes and any amounts necessary to reimburse the NIMS Insurer for all amounts paid under the NIMs insurance policy and any other amounts reimbursable or otherwise payable to the NIMS Insurer, in each case, with interest thereon at the
applicable rate set forth in the Indenture and to the extent not previously reimbursed or paid and any amounts payable by the Supplemental Interest Trust to the Swap Counterparty pursuant to the Swap Agreement, including any Swap Termination Payment payable by the
Supplemental Interest Trust including any interest on such Swap Termination Payment at the applicable rate set forth in the Swap Agreement from the Early Termination Date until such Swap Termination Payment is paid.

or

(ii)        the later of the final payment or other liquidation (or any advance with respect thereto) of the last Mortgage Loan
owned by the Trust or the disposition of all property acquired upon foreclosure in respect of any Mortgage Loan, and the payment to the Certificateholders of all amounts required to be paid to them hereunder.

The Terminator shall give notice to the Supplemental Interest Trust Trustee and the Swap Counterparty of its election to purchase all Mortgage Loans and other property remaining in the Trust
no later than four Business Days prior to the related Determination Date in the month immediately preceding the Distribution Date on which the Certificates will be retired; provided that the Terminator, or the Supplemental Interest Trust Trustee on its behalf, may
request a non-binding estimate of the Swap Termination Payment due upon the exercise of the right of repurchase pursuant to this Section 9.01 prior to such Determination Date.

The Servicer shall not have any further right to reimbursement by the Trust for any advance that is used to reduce the purchase price of the Mortgage Loans pursuant to the immediately
preceding sentence.

In no event shall the Trust continue beyond the expiration of 21 years from the death of the survivor of the issue of Joseph P. Kennedy, the late ambassador of the United States to the Court
of St. James’, living on the date hereof.

In no event shall the Servicer be required to expend any amounts other than those described in the first paragraph of this Section 9.01(a) in order to terminate the Trust or purchase the
Mortgage Loans under this Section 9.01, and in no event shall the Company, the Trustee or the Delaware Trustee be required to expend any amounts in connection with such termination or purchase.

(b)        Notice of purchase, specifying the date upon which the Certificateholders may surrender their Certificates to the Trustee for payment and
cancellation, shall be given promptly by letter from the Trustee to Certificateholders mailed not less than 30 days prior to such final distribution, specifying (i) the date upon which final payment of the Certificates will be made upon presentation and surrender of
Certificates at the office of the Certificate Registrar therein designated (the “Termination Date”), (ii) the amount of such final payment (the “Termination Payment”) and (iii) that the Record Date otherwise applicable to the
Distribution Date upon which the Termination Date occurs is not applicable, payments being made only upon presentation and surrender of the Certificates at the office of the Certificate Registrar therein specified. Upon any such notice, the Distribution Account shall
terminate subject to the Servicer’s obligation to hold all amounts payable to Certificateholders in trust without interest pending such payment.  The Servicer shall provide the Trustee with written notice of its intent to terminate the Trust upon purchase
at least five Business Days, or such lesser time as is acceptable to the Trustee, such acceptance not to be unreasonably withheld, prior to the time that the Trustee is required to mail notice to the Certificateholders.

In the event that all of the Certificateholders shall not surrender their Certificates for cancellation within six months after the Termination Date, the Servicer shall give a second written
notice to the remaining Certificateholders to surrender their Certificates for cancellation and receive the Termination Payment with respect thereto. If within one year after the second notice all the Certificates shall not have been surrendered for cancellation, the
Servicer may take appropriate steps to contact the remaining Certificateholders concerning surrender of their Certificates, and the cost thereof shall be paid out of the funds and other assets which remain in trust hereunder.

Upon the completion of winding up of the Trust, including the payment or the making reasonable provision for payment of all obligations of the Trust in accordance with Section 3808(e) of the
Statutory Trust Statute, the Delaware Trustee shall prepare, the Trustee, the Delaware Trustee and any other trustee hereunder shall sign, and the Delaware Trustee (upon the Trustee’s consent acting at direction of the Servicer) shall file, a certificate of
cancellation with the Secretary of State in accordance with Section 3810 of the Statutory Trust Statute, at which time the Trust and this Agreement shall terminate.  The Servicer shall act as the liquidator of the Trust and shall be responsible for taking all
actions in connection with winding up the Trust, in accordance with the requirements of this Agreement (including this Section 9.01 and Section 9.02) and applicable law.

Section 9.02          Additional Termination Requirements.

(a)                In the event the
Servicer exercises its purchase option as provided in Section 9.01, REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC VI shall be terminated in accordance with the following additional requirements, unless the Servicer, at its own expense, obtains for the
Trustee an Opinion of Counsel to the effect that the failure of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC VI to comply with the requirements of this Section 9.02 will not (i) result in the imposition of taxes on “prohibited transactions”
of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC VI as described in Section 860F of the Code, or (ii) cause REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI to fail to qualify as a REMIC at any time that any Certificates are
outstanding:

(i)                  Within 90 days prior to the
final Distribution Date set forth in the notice given by the Trustee under Section 9.01, the Tax Matters Person shall prepare the documentation required and the Tax Matters Person and the Trustee shall adopt a plan of complete liquidation on behalf of REMIC I, REMIC
II, REMIC III, REMIC IV, REMIC V and REMIC VI meeting the requirements of a qualified liquidation under Section 860F of the Code and any regulations thereunder, as evidenced by an Opinion of Counsel obtained at the expense of the Servicer, on behalf of REMIC I, REMIC
II, REMIC III, REMIC IV, REMIC V and REMIC VI; and

(ii)                At or after the time of adoption of such
a plan of complete liquidation and at or prior to the final Distribution Date, the Servicer on behalf of the Trust shall sell all of the assets of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC VI to the Servicer for cash in the amount specified in Section
9.01.

(b)               By its acceptance of
any Residual Certificate, the Holder thereof hereby agrees to authorize the Tax Matters Person and the Trustee to adopt such a plan of complete liquidation upon the written request of the Tax Matters Person and the Trustee and to take such other action in connection
therewith as may be reasonably requested by the Tax Matters Person or the Trustee.

Section 9.03          Trust Irrevocable

.  Except as expressly provided herein, the trust created hereby is irrevocable.

ARTICLE X

Miscellaneous Provisions

Section 10.01      Amendment.

(a)                This Agreement
may be amended from time to time by the Servicer, the Company and the Trustee, with the consent of the NIMS Insurer, and if necessary, with the prior written consent of the Swap Counterparty (as described below), and without the consent of any of the
Certificateholders:

(i)                  to cure any
ambiguity;

(ii)                to correct or supplement any provision
herein which may be defective or inconsistent with any other provisions herein;

(iii)               to comply with any requirements imposed by
the Code or any regulations thereunder;

(iv)              to correct the description of any property at any
time included in REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI or to assure the conveyance to the Trust of any property included in REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI;

(v)                pursuant to Section 5.01(c)(v);
and

(vi)              to add any provision to, or amend any provision in,
this Agreement, provided that such amendment or addition does not adversely affect in any material respect the interests of any Certificateholder;

provided, however, that any such amendment which modifies the rights or obligations of the Delaware Trustee hereunder shall require the consent of the
Delaware Trustee; provided, further, that any such amendment which modifies the right of the Holders of the Class P Certificates to receive Assigned Prepayment Charges, including any amendment to Section 3.29, shall require the consent of each Holder of the
Class P Certificates. No such amendment (other than one entered into pursuant to clause (iii) of the preceding sentence) shall change the powers of the Servicer. Prior to entering into any amendment (other than one entered into pursuant to clause (iii) of the second
preceding sentence) without the consent of Certificateholders pursuant to this paragraph, the Trustee shall require an Opinion of Counsel addressed to the Trust, the Trustee and the NIMS Insurer to the effect that such amendment is permitted under this Agreement and
has no material adverse effect on the interests of the Certificateholders; provided, however, that no such Opinion of Counsel with respect to the material effect of such amendment on the interests of the Certificateholders shall be required if the Company
obtains a letter from each Rating Agency stating that the amendment would not result in the downgrading or withdrawal of the respective ratings then assigned to the Certificates. Prior to entering into any amendment pursuant to clause (iii) of the third preceding
sentence without the consent of Certificateholders pursuant to this paragraph, the Trustee shall require an Opinion of Counsel to the effect that such action is necessary or helpful to comply with the requirements imposed by the Code or any regulations thereunder and
shall not cause any REMIC formed under this Agreement to fail to qualify as such under the Code. The cost of any opinion required by this Section 10.01 shall be borne by the party requesting such amendment.

(b)               This Agreement may also
be amended from time to time by the Servicer, the Company and the Trustee, with the consent of the NIMS Insurer, and if necessary, with the prior written consent of the Swap Counterparty (as described below), with the consent of the Holders of Certificates evidencing
Percentage Interests aggregating not less than 66% of REMIC III, 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 Certificateholders;
provided, however, that no such amendment shall, without the consent of the Holder of each Certificate affected thereby (i) reduce in any manner the amount of, or delay the timing of, distributions of principal or interest required to be made hereunder or
reduce the Certificateholder’s Percentage Interest, the Pass-Through Rate or the Termination Payment with respect to any of the Certificates, (ii) reduce the percentage of Percentage Interests specified in this Section 10.01 which are required to amend this
Agreement, (iii) create or permit the creation of any lien against any part of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI, or (iv) modify any provision in any way which would permit an earlier retirement of the Certificates; provided, further,
that any such amendment which modifies the rights or obligations of the Delaware Trustee hereunder shall require the consent of the Delaware Trustee; provided, further, that any such amendment which modifies the right of the Holders of the Class P Certificates
to receive Assigned Prepayment Charges, including any amendment to Section 3.29, shall require the consent of each Holder of the Class P Certificates.

In addition to the provisions of this Section 10.01 and as long as the Swap Counterparty remains the Swap Counterparty under the Swap Agreement or is owed any amounts under this Agreement, the
prior written consent of the Swap Counterparty shall be necessary for the adoption of any proposed amendment of this Agreement that, in the Swap Counterparty’s reasonable determination, materially affects the Swap Counterparty’s rights or interests under
this Agreement, including, but not limited to, the right to receive any Net Swap Payment or Swap Termination Payment due and owing to it under this Agreement; provided that any such consent of the Swap Counterparty shall not be unreasonably withheld.

Promptly after the execution of any such amendment, the Trustee shall furnish written notification of the substance of such amendment to the Delaware Trustee and each Certificateholder and the
NIMS Insurer. Any failure to provide such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such amendment.

It shall not be necessary for the consent of Certificateholders under this Section 10.01 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent
shall approve the substance thereof. The manner of obtaining such consents and of evidencing the authorization of the execution thereof by Certificateholders shall be subject to such reasonable regulations as the Trustee may prescribe.

Section 10.02     
Recordation of Agreement

.  To the extent permitted by applicable law, this Agreement is subject to recordation in all appropriate public offices for real property records in all the counties or the comparable
jurisdictions in which any Mortgaged Property is situated, and in any other appropriate public recording office or elsewhere, such recordation to be effected by the Company and at its expense on direction by the Trustee, but only upon direction accompanied by an
Opinion of Counsel to the effect that such recordation materially and beneficially affects the interests of the Certificateholders.

Section 10.03     
Limitation on Rights of Certificateholders

.  The death or incapacity of any Certificateholder shall not operate to terminate this Agreement or the Trust, nor entitle such Certificateholder’s legal representatives or heirs
to claim an accounting or to take any action or proceeding in any court for a partition or winding-up of the Trust, nor otherwise affect the rights, obligations and liabilities of the parties hereto or any of them.

No Certificateholder shall have any right to vote or in any manner otherwise to control the operation and management of the Trust or the obligations of the parties hereto (except as provided
in Section 5.09, Section 7.01, Section 8.01, Section 8.02, Section 8.07, Section 10.01 and this Section 10.03), nor shall anything herein set forth, or contained in the terms of the Certificates, be construed so as to constitute the Certificateholders from time to
time as partners or members of an association; nor shall any Certificateholder be under any liability to any third person by reason of any action taken by the parties to this Agreement pursuant to any provision hereof.

No Certificateholder shall have any right by virtue or by availing of any provision of this Agreement to institute any suit, action or proceeding in equity or at law upon or under or with
respect to this Agreement, unless such Holder previously shall have given to the Trustee a written notice of default and of the continuance thereof, as hereinbefore provided, and unless also the Holders of Certificates evidencing Percentage Interests aggregating not
less than 25% of REMIC III shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder and shall have offered to the institution acting as Trustee, both in its individual capacity and as Trustee,
such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee, for 60 days after its receipt of such notice, request and offer of indemnity, shall have neglected or refused to institute any
such action, suit or proceeding. However, the Trustee is under no obligation to exercise any of the extraordinary trusts or powers vested in it by this Agreement or to make any investigation of matters arising hereunder or to institute, conduct or defend any
litigation hereunder or in relation hereto at the request, order or direction of any of the Certificateholders unless such Certificateholders have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which may be
incurred therein or thereby. It is understood and intended, and expressly covenanted by each Certificateholder with every other Certificateholder and the Trustee, that no one or more Holders of Certificates shall have any right in any manner whatever by virtue or by
availing of any provision of this Agreement to affect, disturb or prejudice the rights of the Holders of any other of such Certificates, or to obtain or seek to obtain priority over or preference to any other such Holder, or to enforce any right under this Agreement,
except in the manner herein provided and for the equal, ratable and common benefit of all Certificateholders. For the protection and enforcement of the provisions of this Section 10.03, each and every Certificateholder and the Trustee shall be entitled to such relief
as can be given either at law or in equity.

Section 10.04     
Access to List of Certificateholders

.  The Certificate Registrar shall furnish or cause to be furnished to the Trustee within 30 days after receipt of a request by the Trustee in writing, a list, in such form as the
Trustee may reasonably require, of the names and addresses of the Certificateholders as of the most recent Record Date for payment of distributions to such Certificateholders.

If three or more Certificateholders (hereinafter referred to as “applicants”) apply in writing to the Trustee, and such application states that the applicants desire to
communicate with other Certificateholders with respect to their rights under this Agreement or under the Certificates and is accompanied by a copy of the communication which such applicants propose to transmit, then the Trustee shall, within five Business Days after
the receipt of such list from the Certificate Registrar, afford such applicants access during normal business hours to the most recent list of Certificateholders held by the Trustee. If such a list is as of a date more than 90 days prior to the date of receipt of
such applicants’ request, the Trustee shall promptly request from the Certificate Registrar a current list as provided above, and shall afford such applicants access to such list promptly upon receipt.

Every Certificateholder, by receiving and holding the same, agrees with the Servicer, the Company, the Trust, the Trustee and the Delaware Trustee that none of the Servicer, the Company, the
Trust, the Trustee or the Delaware Trustee shall be held accountable by reason of the disclosure of any such information as to the names and addresses of the Certificateholders hereunder, regardless of the source from which such information was derived.

Section 10.05     
Governing Law

.  This Agreement shall be construed in accordance with the laws of the State of Delaware without giving effect to its conflict of laws provisions and the obligations, rights and
remedies of the parties hereunder shall be determined in accordance with such laws without giving effect to conflict of laws provisions.

Section 10.06     
Notices

.  All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given if personally delivered at or mailed by registered or certified mail,
return receipt requested, or overnight courier to the applicable Notice Address. Notices to the Rating Agencies shall also be deemed to have been duly given if mailed by first class mail, postage prepaid, to the above listed addresses of the Rating Agencies. Any
notice required or permitted to be mailed to a Certificateholder shall be given by first class mail, postage prepaid, at the address of such Holder as shown in the Certificate Register. Any notice so mailed within the time prescribed in this Agreement shall be
conclusively presumed to have been duly given, whether or not the Certificateholder receives such notice.

Section 10.07     
Compliance With Regulation AB

.  Each of the parties hereto acknowledges and agrees that the purpose of Section 3.20, Section 8.18 and the fourth sentence of the second paragraph of Section 2.05 is to facilitate
compliance by the Company, the Trust and Washington Mutual Mortgage Securities Corp. with the provisions of Regulation AB, as it may be amended or clarified from time to time. Each of the Servicer and the Trustee acknowledges that interpretations of the requirements
of Regulation AB may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to comply with reasonable requests
made by the Company, the Trust or Washington Mutual Mortgage Securities Corp. in good faith for delivery of information under the provisions of Regulation AB on the basis of evolving interpretations thereof, and to deliver any other information necessary in the good
faith determination of the Company, the Trust or Washington Mutual Mortgage Securities Corp. to permit the Company, the Trust and Washington Mutual Mortgage Securities Corp. to comply with the provisions of Regulation AB. Each of the Trust and Washington Mutual
Mortgage Securities Corp. shall be a third-party beneficiary of the Servicer’s and the Trustee’s respective obligations under Section 3.20, Section 8.18 and 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 Certificates or the rights of the Holders
thereof.

Section 10.09     
Counterpart Signatures

.  For the purpose of facilitating the recordation of this Agreement as herein provided and for other purposes, this Agreement may be executed simultaneously in any number of
counterparts, each of which counterparts shall be deemed to be an original, and such counterparts shall constitute but one and the same instrument.

Section 10.10     
Benefits of Agreement

.  Except as expressly provided herein, nothing in this Agreement or in any Certificate, expressed or implied, shall give to any Person, other than the parties hereto and their
respective successors hereunder, any separate trustee or co-trustee appointed under Section 8.10 and the Certificateholders, any benefit or any legal or equitable right, remedy or claim under this Agreement.

Section 10.11      Notices and Copies to Rating Agencies.

(a)                The Trustee shall
notify the Rating Agencies, the NIMS Insurer and the Swap Counterparty of the occurrence of any of the following events, in the manner provided in Section 10.06:

(i)                  the occurrence of an Event of
Default pursuant to Section 7.01, subject to the provisions of Section 8.01(d); and

(ii)                the appointment of a successor Servicer
pursuant to Section 7.02;

(b)               The Servicer shall
notify the Rating Agencies, the NIMS Insurer and the Swap Counterparty of the occurrence of any of the following events, or in the case of clauses (iii), (iv), (v), (vii) and (viii) promptly upon receiving notice thereof, in the manner provided in Section
10.06:

(i)                  any amendment of this
Agreement pursuant to Section 10.01;

(ii)                the appointment of a successor Trustee
or successor Delaware Trustee pursuant to Section 8.08;

(iii)               the filing of any claim under or the
cancellation or modification of any fidelity bond and errors and omissions coverage pursuant to Section 3.14 with respect to the Servicer;

(iv)              any change in the location of the Collection
Account, or the Distribution Account;

(v)                the purchase of any Mortgage Loan by the
Company pursuant to Section 2.08 or by the Seller pursuant to the Mortgage Loan Purchase Agreement, or the purchase of the outstanding Mortgage Loans pursuant to Section 9.01;

(vi)              the occurrence of the final Distribution Date or the
termination of the Trust pursuant to Section 9.01(a)(ii);

(vii)             the failure of the Servicer to make an Advance pursuant
to Section 4.02; and

(viii)           the failure of the Servicer to make a determination by the close of
business on the second Business Day prior a Distribution Date regarding whether it will make an Advance for such Distribution Date pursuant to Section 4.02.

The Servicer shall provide copies of the statements pursuant to Section 4.02, Section 4.06 or Section 3.20 or any other statements or reports to the Rating Agencies in
such time and manner that such statements or determinations are required to be provided to Certificateholders.

In addition, each party hereto agrees that it will furnish or make available to the NIMS Insurer a copy of any opinions, notices, reports, schedules, certificates, statements, rating
confirmation letters or other information that are furnished hereunder to the Trustee or the Certificateholders.

Section 10.12     
Covenant Not to Place Trust Into Bankruptcy

.  Each party hereto covenants that it shall not, until at least one year and one day after all Certificates have been paid in full, (i) take any action to file an involuntary bankruptcy
petition against the Trust, or (ii) institute against the Trust, or join in any institution against the Trust of, any bankruptcy or insolvency proceedings under any federal or state bankruptcy, insolvency or similar law. In addition, each Certificateholder or
Beneficial Owner, by accepting and holding a Certificate or an interest therein, agrees it shall not, until at least one year and one day after all Certificates have been paid in full, take any action to file an involuntary bankruptcy petition against the
Trust.

Section 10.13     
Covenant Not to Place Company Into Bankruptcy

.  Each party hereto (other than the Company) covenants that it shall not, until at least one year and one day after all securities issued by any trust to which the Company has
transferred property have been paid in full, take any action to file an involuntary bankruptcy petition against the Company.  In addition, each Certificateholder or Beneficial Owner, by accepting and holding a Certificate or an interest therein, agrees it shall
not, until at least one year and one day after all securities issued by any trust to which the Company has transferred property have been paid in full, take any action to file an involuntary bankruptcy petition against the Company.

Section 10.14      Third-Party Beneficiaries.

(a)        The NIMS Insurer shall be deemed a third‐party beneficiary of this Agreement, and shall be entitled to enforce such rights, in each case, as
if it were a party hereto.  Notwithstanding anything to the contrary anywhere in this Agreement, all rights of the NIMS Insurer hereunder (i) shall be suspended whenever rights of the NIMS Insurer under the Indenture (other than the right to consent to
amendments to the Indenture) are suspended and (ii) except in the case of any right to indemnification hereunder, if any, shall permanently terminate upon the later to occur of (A) the payment in full of the Insured NIM Notes as provided in the Indenture
and (B) the payment in full to the NIMS Insurer of any amounts owed to the NIMS Insurer as provided in the Indenture.

(b)        The Swap Counterparty shall be deemed a third-party beneficiary of this Agreement, and shall be entitled to enforce
such rights, in each case, as if it were a party hereto.  Notwithstanding anything to the contrary anywhere in this Agreement, all rights of the Swap Counterparty hereunder shall permanently terminate upon the later to occur of (i) the expiration of the Swap
Agreement, and (ii) the payment in full to the Swap Counterparty, of any amounts owed to it under the Swap Agreement.

IN WITNESS WHEREOF, the Company, the Servicer, the Trustee and the Delaware Trustee have caused their names to be signed hereto by their respective officers, thereunto duly authorized, all as
of the date first above written.

WaMu ASSET ACCEPTANCE CORP.

By:  /s/ Thomas G. Lehmann

Name:  Thomas G. Lehmann

 Title:  First Vice President

 

 

WASHINGTON MUTUAL BANK

as Servicer

By:   /s/ Barbara Loper

Name:  Barbara Loper

 Title:  Vice President

LASALLE BANK NATIONAL ASSOCIATION,

as Trustee

By:  /s/ Rita Lopez

Name:  Rita Lopez

 Title:  Vice President

 

 

CHRISTIANA BANK & TRUST COMPANY,

as Delaware Trustee

 

By:  /s/ James M. Young

Name:  James M. Young

 Title:  Assistant Vice President

 

[Signature page to Pooling and Servicing Agreement for WMABS Series 2006-HE1]

ACKNOWLEDGEMENT OF CORPORATION

STATE OF WASHINGTON  )

                                                   )  SS.

COUNTY OF KING                 )

I certify that I know or have satisfactory evidence that
Thomas G. Lehmann is the person who appeared before me, and said person
acknowledged that he signed this instrument, on oath stated that. he was
authorized to execute the instrument and acknowledged it as the First Vice
President of WaMu ASSET ACCEPTANCE CORP., to be the free and voluntary act of such party for the uses and purposes mentioned therein.

Dated this 19th day of April 2006.

/s/ Leslie Mara Johnston

Notary Public in and for the State of Washington,

residing at Issaquah,
Washington

My commission expires: July
29, 2009

ACKNOWLEDGEMENT

STATE OF WASHINGTON           
}

                                                            
} ss.

COUNTY OF KING                           }

 

           
I certify that I know or have satisfactory evidence that Barbara Loper is the
person who appeared before me, and said person acknowledged that said person
signed this instrument, on oath stated that said person was authorized to
execute the instrument and acknowledged it as the Vice President of Washington Mutual Bank, a federal savings association, to be the free and voluntary act of
such association for the uses and purposes mentioned in the instrument.

Dated this 18th day of April 2006.

/s/ Leslie Mara Johnston

Notary Public in and for the State of Washington,

residing at Issaquah,
Washington

My commission expires: July
29, 2009

 

ACKNOWLEDGEMENT

STATE OF
ILLINOIS                                     )

                                                                          )  SS.

COUNTY OF COOK                                     
)

On this 20th day of April 2006 before me.
A.C. Hellyer, a Notary Public in and for said State, personally appeared Rita
Lopez, personally known to me  to be a Vice President of LaSalle Bank N.A., 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/ A.C. Hellyer

Notary Public State of Illinois

My Commission Expires:  9/21/2009

 

(Notarial Seal)

ACKNOWLEDGEMENT

STATE OF
DELAWARE                                          
)

                                                                                       )  SS.

COUNTY OF
NEWCASTLE                                     )

On this 18th day of April 2006 before me, a Notary Public in and for said State, personally appeared
James M. Young, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacit(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

Signature  /s/ Patricia
A. Smith

Notary Public

State of Delaware

My Commission Expires May 29, 2009

 

(SEAL)

 

Annex A

 

On any Distribution Date, the Certificate Interest Rate on the Class L3-C Regular Interest shall equal a per annum rate equal to the percentage equivalent of a fraction, the numerator of which
is the sum of the amounts calculated pursuant to clauses (A) through (R) below, and the denominator of which is the aggregate of the Class Principal Balances of the Class L2-XX, L2-1-A1, L2-2-A1, L2-2-A2, L2-2-A3, L2-2-A4, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6,
L2-M7, L2-M8, L2-M9, L2-M10, L2-M11, and L2-ZZ Regular Interests.  For purposes of calculating the Certificate Interest Rate for the Class L3-C Regular Interest, the numerator is equal to the sum of the following components:

(A)       the Certificate Interest Rate for the Class L2-XX Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of the Class L2-XX Regular Interest;

(B)       the Certificate Interest Rate for the Class L2-1-A1 Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of Class L2-1-A1 Regular Interest;

(C)       the Certificate Interest Rate for the Class L2-2-A1 Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of Class L2-2-A1 Regular Interest;

(D)       the Certificate Interest Rate for the Class L2-2-A2 Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of Class L2-2-A2 Regular Interest;

(E)       the Certificate Interest Rate for the Class L2-2-A3 Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of Class L2-2-A3 Regular Interest;

(F)       the Certificate Interest Rate for the Class L2-2-A4 Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of Class L2-2-A4 Regular Interest;

(G)       the Certificate Interest Rate for the Class L2-M1 Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of Class L2-M1 Regular Interest;

(H)       the Certificate Interest Rate for the Class L2-M2 Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of Class L2-M2 Regular Interest;

(I)        the Certificate Interest Rate for the Class L2-M3 Regular Interest minus the Marker Rate (as defined below), applied to
an amount equal to the Class Principal Balance of Class L2-M3 Regular Interest;

(J)        the Certificate Interest Rate for the Class L2-M4 Regular Interest minus the Marker Rate (as defined below), applied to
an amount equal to the Class Principal Balance of Class L2-M4 Regular Interest;

(K)       the Certificate Interest Rate for the Class L2-M5 Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of Class L2-M5 Regular Interest;

(L)       the Certificate Interest Rate for the Class L2-M6 Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of Class L2-M6 Regular Interest;

(M)      the Certificate Interest Rate for the Class L2-M7 Regular Interest minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of Class L2-M7 Regular Interest;

(N)       the Certificate Interest Rate for the Class L2-M8 Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of Class L2-M8 Regular Interest;

(O)       the Certificate Interest Rate for the Class L2-M9 Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of Class L2-M9 Regular Interest;

(P)       the Certificate Interest Rate for the Class L2-M10 Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of Class L2-M10 Regular Interest;

(Q)       the Certificate Interest Rate for the Class L2-M11 Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of Class L2-M11 Regular Interest; and

(R)       the Certificate Interest Rate for the Class L2-ZZ Regular Interest minus the Marker Rate (as defined below), applied to an
amount equal to the Class Principal Balance of the Class L2-ZZ Regular Interest.

 

For purposes of the foregoing calculation, the “Marker Rate” shall be equal to a per annum rate equal to two (2) multiplied by the weighted average of the Certificate
Interest Rates for the Class L2-1-A1, L2-2-A1, L2-2-A2, L2-2-A3, L2-2-A4, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8, L2-M9, L2-M10, L2-M11, and L2-ZZ Regular Interests, with (A) the rates on each such Regular Interest (other than the Class L2-ZZ Regular
Interest) subject to a floor and a cap equal to the lesser of (i) LIBOR plus the Certificate Margin for the Corresponding Certificate for such Regular Interest, and (ii) the REMIC Net WAC Rate for the Corresponding Certificates, (B) the rate on the Class L2-ZZ
Regular Interest subject to a cap of zero for purposes of this calculation, and (C) the rates on all of the Regular Interests multiplied by a fraction the numerator of which is the actual number of days elapsed in the Accrual Period for each such Regular Interest and
the denominator of which is 30.

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C EP 3

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class I-A

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another
pool of assets consisting of, among other things, one- to four-family mortgage loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

	
WMABS Series 2006-HE1

	
Portion of the Class I-A Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$53,578,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class I-A Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class I-A Principal Balance as of the Cut-Off Date:

	
$53,578,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C EQ 1

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class II-A-1

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another pool of assets consisting of, among other things,
one- to four-family mortgage loans formed by

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

	
WMABS Series 2006-HE1

	
Portion of the Class II-A-1 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$136,504,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class II-A-1 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class II-A-1 Principal Balance as of the Cut-Off Date:

	
$136,504,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C ER 9

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class II-A-2

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another
pool of assets consisting of, among other things, one- to four-family mortgage loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

	
WMABS Series 2006-HE1

	
Portion of the Class II-A-2 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$39,236,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class II-A-2 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class II-A-2 Principal Balance as of the Cut-Off Date:

	
$39,236,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C ES 7

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class II-A-3

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another
pool of assets consisting of, among other things, one- to four-family mortgage loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

	
WMABS Series 2006-HE1

	
Portion of the Class II-A-3 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$47,111,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class II-A-3 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class II-A-3 Principal Balance as of the Cut-Off Date:

	
$47,111,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C ET 5

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class II-A-4

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another pool of assets consisting of, among other things,
one- to four-family mortgage loans formed by

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

	
WMABS Series 2006-HE1

	
Portion of the Class II-A-4 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$21,691,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class II-A-4 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class II-A-4 Principal Balance as of the Cut-Off Date:

	
$21,691,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C EU 2

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class M-1

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another
pool of assets consisting of, among other things, one- to four-family mortgage loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

The Class M-1 Certificates will provide credit support to certain Classes of Certificates, as described in the Pooling Agreement.

	
WMABS Series 2006-HE1

	
Portion of the Class M-1 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$14,984,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-1 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class M-1 Principal Balance as of the Cut-Off Date:

	
$14,984,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C EV 0

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class M-2

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another
pool of assets consisting of, among other things, one- to four-family mortgage loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

The Class M-2 Certificates will provide credit support to certain Classes of Certificates, as described in the Pooling Agreement.

	
WMABS Series 2006-HE1

	
Portion of the Class M-2 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$13,622,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-2 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class M-2 Principal Balance as of the Cut-Off Date:

	
$13,622,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C EW 8

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class M-3

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another
pool of assets consisting of, among other things, one- to four-family mortgage loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

The Class M-3 Certificates will provide credit support to certain Classes of Certificates, as described in the Pooling Agreement.

	
WMABS Series 2006-HE1

	
Portion of the Class M-3 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$8,368,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-3 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class M-3 Principal Balance as of the Cut-Off Date:

	
$8,368,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C EX 6

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class M-4

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another pool of assets consisting of, among other things,
one- to four-family mortgage loans formed by

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

The Class M-4 Certificates will provide credit support to certain Classes of Certificates, as described in the Pooling Agreement.

	
WMABS Series 2006-HE1

	
Portion of the Class M-4 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$7,395,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-4 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class M-4 Principal Balance as of the Cut-Off Date:

	
$7,395,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

 

 

	

 

	
Exhibit A

	
 

	
CUSIP 92925C EY 4

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class M-5

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another pool of assets consisting of, among other things,
one- to four-family mortgage loans formed by

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

The Class M-5 Certificates will provide credit support to certain Classes of Certificates, as described in the Pooling Agreement.

	
WMABS Series 2006-HE1

	
Portion of the Class M-5 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$7,200,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-5 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class M-5 Principal Balance as of the Cut-Off Date:

	
$7,200,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

	
 

 

 

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C EZ 1

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class M-6

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another
pool of assets consisting of, among other things, one- to four-family mortgage loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

The Class M-6 Certificates will provide credit support to certain Classes of Certificates, as described in the Pooling Agreement.

	
WMABS Series 2006-HE1

	
Portion of the Class M-6 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$6,227,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-6 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class M-6 Principal Balance as of the Cut-Off Date:

	
$6,227,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C FA 5

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class M-7

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another
pool of assets consisting of, among other things, one- to four-family mortgage loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

The Class M-7 Certificates will provide credit support to certain Classes of Certificates, as described in the Pooling Agreement.

	
WMABS Series 2006-HE1

	
Portion of the Class M-7 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$5,643,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-7 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class M-7 Principal Balance as of the Cut-Off Date:

	
$5,643,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C FB 3

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class M-8

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another pool of assets consisting of, among other things,
one- to four-family mortgage loans formed by

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

The Class M-8 Certificates will provide credit support to certain Classes of Certificates, as described in the Pooling Agreement.

	
WMABS Series 2006-HE1

	
Portion of the Class M-8 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$5,254,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-8 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class M-8 Principal Balance as of the Cut-Off Date:

	
$5,254,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

 

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C FC 1

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class M-9

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another pool of assets consisting of, among other things,
one- to four-family mortgage loans formed by

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

The Class M-9 Certificates will provide credit support to certain Classes of Certificates, as described in the Pooling Agreement.

	
WMABS Series 2006-HE1

	
Portion of the Class M-9 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$3,892,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-9 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class M-9 Principal Balance as of the Cut-Off Date:

	
$3,892,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

 

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C FD 9

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class M-10

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another pool of assets consisting of, among other things,
one- to four-family mortgage loans formed by

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

The Class M-10 Certificates will provide credit support to certain Classes of Certificates, as described in the Pooling Agreement.

	
WMABS Series 2006-HE1

	
Portion of the Class M-10 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$3,892,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-10 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class M-10 Principal Balance as of the Cut-Off Date:

	
$3,892,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

	
 

	
Exhibit A

	
 

	
CUSIP 92925C FE 7

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class M-11

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another
pool of assets consisting of, among other things, one- to four-family mortgage loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

The Class M-11 Certificates will provide credit support to certain Classes of Certificates, as described in the Pooling Agreement.

	
WMABS Series 2006-HE1

	
Portion of the Class M-11 Principal Balance as of the Cut-Off Date Evidenced by this Certificate:

	
$3,892,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-11 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class M-11 Principal Balance as of the Cut-Off Date:

	
$3,892,000.00

	
 

 

 

	
Cede & Co.

	
Registered Owner

	
Certificate No. _______

 

 

 

	

 

	
Exhibit A

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
Class C

 

Evidencing a beneficial interest in a pool of assets consisting of beneficial interests in another pool of assets consisting of beneficial interests in another pool of assets consisting of, among other things,
one- to four-family mortgage loans formed by

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF
REGISTRATION OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(d) OF THE POOLING AGREEMENT.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A “PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
(“ERISA”), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

The Class C Certificates will provide credit support to certain Classes of Certificates, as described in the Pooling Agreement.

	
WMABS Series 2006-HE1

	
Portion of the Class C Notional Amount as of the Cut-Off Date Evidenced by this Certificate:

	
$389,194,677.20

	
 

	
 

	
 

	
 

	
 

	
 

	
Class C Certificate Interest Rate:

	
Variable, applied to the Class C Notional Amount

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class C Principal Balance as of the Cut-Off Date:

	
$10,705,577.20

	
 

	
Class C Notional Amount as of the Cut-Off Date:

	
$389,194,677.20

	
 

 

 

	
Seafair Securities Holding Corp.

	
Registered Owner

	
Certificate No. _______

	
 

 

 

 

	
 

	
Exhibit A

 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
Class P

 

Evidencing a Percentage Interest in certain distributions with respect to a pool of one- to four-family mortgage loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  This Certificate represents ownership of a “regular interest” in a “real estate
mortgage investment conduit,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.  The issue date of this Certificate is April 20, 2006.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF
REGISTRATION OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(d) OF THE POOLING AGREEMENT.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A “PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
(“ERISA”), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

	
WMABS Series 2006-HE1

	
Percentage Interest evidenced by this Class P Certificate in the distributions to be made with respect to the Class P Certificates:

	
100.00%

	
 

	
 

	
 

	
 

	
 

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

 

	
Seafair Securities Holding Corp.

 Registered Owner

	
 

	
 

	
Certificate No. _______

	
 

	
 

	
 

 

 

	

 

	
Exhibit B

	
 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
 

	
 

	
 

	
 

	
Class R

	
 

	
 

	
 

	
 

	
 

 

Evidencing a Percentage Interest in certain distributions with respect to a pool of one- to four-family mortgage loans formed by

	
WaMu ASSET ACCEPTANCE CORP.

 

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE COMPANY AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT EITHER (A)
THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) WHICH
IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A),
(B), OR (C) BEING HEREINAFTER REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR (D) AN AGENT OF A DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO ENABLE THE TRANSFER TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX.  SUCH AFFIDAVIT
SHALL INCLUDE CERTAIN REPRESENTATIONS AS TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE.  NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CLASS R CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR
AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS CERTIFICATE.  EACH HOLDER OF A CLASS R CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF
REGISTRATION OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(d) OF THE POOLING AGREEMENT.

IN THE CASE OF ANY CLASS R CERTIFICATE PRESENTED FOR REGISTRATION IN THE NAME OF ANY PERSON, THE TRUSTEE SHALL REQUIRE (I) AN OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION 5.01(c) OF THE POOLING
AGREEMENT AND (II) IF SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF A CLASS R CERTIFICATE ARE PERMISSIBLE
UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUST, THE
TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL
SHALL NOT BE AN EXPENSE OF THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE COMPANY.

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  Solely for U.S. federal income tax purposes, this Certificate represents “residual
interests” in “real estate mortgage investment conduits,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.

 

	
WMABS Series 2006-HE1

	
Percentage Interest evidenced by this Class R Certificate in the distributions to be made with respect to the Class R Certificates:

	
100%

	
 

	
 

	
 

	
Class R Certificate Interest Rate:

	
Variable. 

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class R Principal Balance as of the Cut-Off Date:

	
$0.00

	
 

 

	
Washington Mutual Bank

	
Registered Owner

	
Certificate No. ______

 

 

	
 

	
Exhibit B

	
 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
 

	
 

	
 

	
 

	
Class R-CX

	
 

	
 

	
 

	
 

	
 

 

Evidencing a Percentage Interest in certain distributions with respect to a pool of one- to four-family mortgage loans formed by

	
WaMu ASSET ACCEPTANCE CORP.

 

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE COMPANY AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT EITHER (A)
THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) WHICH
IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A),
(B), OR (C) BEING HEREINAFTER REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR (D) AN AGENT OF A DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO ENABLE THE TRANSFER TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX.  SUCH AFFIDAVIT
SHALL INCLUDE CERTAIN REPRESENTATIONS AS TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE.  NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CLASS R-CX TO A DISQUALIFIED ORGANIZATION OR AN AGENT
OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
CERTIFICATE.  EACH HOLDER OF A CLASS R-CX BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF
REGISTRATION OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(d) OF THE POOLING AGREEMENT.

IN THE CASE OF ANY CLASS R-CX PRESENTED FOR REGISTRATION IN THE NAME OF ANY PERSON, THE TRUSTEE SHALL REQUIRE (I) AN OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION 5.01(c) OF THE POOLING AGREEMENT
AND (II) IF SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF A CLASS R-CX ARE PERMISSIBLE UNDER APPLICABLE LAW,
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE
TRUSTEE, THE SERVICER OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN
EXPENSE OF THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE COMPANY.

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  Solely for U.S. federal income tax purposes, this Certificate represents “residual
interests” in “real estate mortgage investment conduits,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.

	
WMABS Series 2006-HE1

	
Percentage Interest evidenced by this Class R‐CX Certificate in the distributions to be made with respect to the Class R‐CX Certificates:

	
100%

	
 

	
 

	
 

	
Class R‐CX Certificate Interest Rate:

	
Variable. 

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class R‐CX Principal Balance as of the Cut-Off Date:

	
$0.00

	
 

	
 

	
Seafair Securities Holding Corp.

	
 

	
 

	
Registered Owner

	
 

	
 

	
Certificate No. ______

	
 

	
 

	
 

	
 

	
 

	
 

 

 

	

 

	
Exhibit B

	
 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

	
 

	
 

	
 

	
 

	
 

	
Class R-PX

	
 

	
 

	
 

	
 

	
 

 

Evidencing a Percentage Interest in certain distributions with respect to a pool of one- to four-family mortgage loans formed by

	
WaMu ASSET ACCEPTANCE CORP.

 

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE COMPANY AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT EITHER (A)
THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) WHICH
IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A),
(B), OR (C) BEING HEREINAFTER REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR (D) AN AGENT OF A DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO ENABLE THE TRANSFER TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX.  SUCH AFFIDAVIT
SHALL INCLUDE CERTAIN REPRESENTATIONS AS TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE.  NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CLASS R-PX TO A DISQUALIFIED ORGANIZATION OR AN AGENT
OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
CERTIFICATE.  EACH HOLDER OF A CLASS R-PX BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF
REGISTRATION OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(d) OF THE POOLING AGREEMENT.

IN THE CASE OF ANY CLASS R-PX PRESENTED FOR REGISTRATION IN THE NAME OF ANY PERSON, THE TRUSTEE SHALL REQUIRE (I) AN OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION 5.01(c) OF THE POOLING AGREEMENT
AND (II) IF SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF A CLASS R-PX ARE PERMISSIBLE UNDER APPLICABLE LAW,
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE
TRUSTEE, THE SERVICER OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN
EXPENSE OF THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE COMPANY.

This Certificate is issued by Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust.  Solely for U.S. federal income tax purposes, this Certificate represents “residual
interests” in “real estate mortgage investment conduits,” as those terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended.

	
WMABS Series 2006-HE1

	
Percentage Interest evidenced by this Class R‐PX Certificate in the distributions to be made with respect to the Class R‐PX Certificates:

	
100%

	
 

	
 

	
 

	
Class R‐PX Certificate Interest Rate:

	
Variable. 

	
 

	
Cut-Off Date:

	
April 1, 2006

	
 

	
First Distribution Date:

	
May 25, 2006

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2036

	
 

	
Class R‐PX  Principal Balance as of the Cut-Off Date:

	
$0.00

	
 

 

	
Seafair Securities Holding Corp.

	
Registered Owner

	
Certificate No. ______

 

	
Exhibit C

FORM OF LOST NOTE AFFIDAVIT

 

                Personally appeared before me the undersigned authority to administer oaths,
                                                                  

                  who first being duly sworn deposes and says:  Deponent is
                                                                                              

                  of
                                                                          
, successor by merger to
                                                                       

                  (“Seller”) and who has personal knowledge of the facts set out in this affidavit.

 

On                           ,
                                             
 did execute and deliver a promissory note in the

principal amount of
$                                            
..

 

                That said note has been misplaced or lost through causes unknown and is presently lost and
unavailable after diligent search has been made.  Seller’s

 records show that an amount of principal and interest on said note is still presently outstanding, due, and unpaid, and Seller is still owner and holder in due course of said lost note.

 

                Seller executes this Affidavit for the purpose of inducing LaSalle Bank National
Association, as Trustee on behalf of Washington Mutual Asset-Backed

Certificates WMABS Series 2006‐HE1 Trust, to accept the transfer of the above described loan from Seller.

 

                Seller agrees to indemnify LaSalle Bank National Association, Washington Mutual Asset
Acceptance Corp. and Washington Mutual Bank

harmless for any losses incurred by such parties resulting from the above described promissory note has been lost or misplaced.

 

By: 
                                                       

        
                                                       

 

STATE
OF                                            
)

                                                             )       SS:

COUNTY OF                                         )

                On this ______ day of ______________, 20_, before me, a Notary Public, in and for said
County and State, appeared ____________________, who

acknowledged the extension of the foregoing and who, having been duly sworn, states that any representations therein contained are true.

 

                Witness my hand and Notarial Seal this _________ day of 20__.

 

                                                               

                                                               

My commission expires                               .

 

	

Exhibit D

 

	
Mortgage Loan Schedule

 

Copies of the Mortgage Loan Schedule (which has been intentionally omitted from this filing) may be obtained from WaMu Asset Acceptance Corp. or LaSalle Bank National Association by contacting:

 

	

 

	
      in the case of WaMu Asset Acceptance Corp.,

 

	

 

	
        John Race

         WaMu Asset Acceptance Corp.

          c/o Washington Mutual Mortgage Securities Corp.

         75 N. Fairway Drive,VHF2A01

         Vernon Hills, IL 60061

         Telephone:  (847) 549-3113

         Facsimile:     (847) 549-3680

 

 

	

 

	
      in the case of LaSalle Bank National Association,

 

	

 

	
        Stefanie Edwards

         LaSalle Bank National Association

         135 S. LaSalle Street, Suite 1625

         Chicago, IL  60603

         Telephone:  (312) 904-8975

         Facsimile:    (312) 904-2084

  

	
Exhibit E

Form of SWAP Agreement

 

 

See Exhibit 4.4 to Form 8-K filed on May 5, 2006

 

 

	
Exhibit F

Form of Residual NIM Holder Certificate

 

LaSalle Bank National Association

135 South LaSalle Street, Suite 1625

Chicago, Illinois 60603

Attention:  Global Securitization Trust Services

Re:           Pooling and Servicing Agreement (the “Agreement”), dated as of April 1, 2006 among
WaMu Asset Acceptance Corp., Washington Mutual Bank, Christiana Bank and Trust Company and LaSalle Bank National Association, Washington Mutual Asset-Backed Certificates WMABS Series 2006‐HE1 Trust

Ladies and Gentlemen:

                The undersigned hereby certifies that the undersigned is the Residual NIM Holder and
further certifies that the undersigned is not an Affiliate of Washington Mutual Mortgage Securities Corp., a Delaware corporation.  Capitalized terms used in this certificate without definition have the meaning given to them in the Agreement.

  

IN WITNESS WHEREOF, the undersigned has executed this Certificate as of ______________, 200__.

                                                                                               
[_________________________]

By:         
                                                                               

Name:     
                                                                               

Title:      
                                                                               

 

	
Exhibit G

 

FORM OF MORTGAGE LOAN ASSIGNMENT AGREEMENT

This MORTGAGE LOAN ASSIGNMENT AGREEMENT (this “Agreement”), dated as of ________________, 200___, is by and between
________________, a ________________, as purchaser (the “Company”), and LASALLE BANK NATIONAL ASSOCIATION, not in its individual capacity but as trustee (the “Trustee”) for WASHINGTON MUTUAL ASSET-BACKED CERTIFICATES
WMABS SERIES 2006‐HE1 TRUST, as seller (the “Trust”).

In consideration of the mutual covenants made herein and for other good and valuable consideration the sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

ARTICLE 1.    
DEFINITIONS

Capitalized terms used but not defined herein shall have the meanings assigned to them in the Pooling and Servicing Agreement dated as of April 1, 2006 (the “Pooling and
Servicing Agreement”) by and among Washington Mutual Bank, as servicer (the “Servicer”), WaMu Asset Acceptance Corp., as Company, Christiana Bank and Trust Company and the Trustee, as trustee.

ARTICLE 2.   SALE AND CONVEYANCE OF MORTGAGE LOAN;

POSSESSION OF FILES; PAYMENT OF PURCHASE

PRICE; DELIVERY OF MORTGAGE LOAN DOCUMENTS;

RECORDATION OF ASSIGNMENTS OF MORTGAGE

Section 2.1      Sale and Conveyance of Mortgage Loans; Possession of Files

(a)                Pursuant
to Section 2.08 of the Pooling and Servicing Agreement and Section 3.1 of the Mortgage Loan Purchase Agreement, subject to the provisions  of the Pooling and Servicing Agreement and after the deposit of the Purchase Price in the Collection Account and the
Trustee’s receipt of a written certification from the Servicer of such deposit (the “Certification”), the Trustee hereby sells, transfers, assigns, sets over, and conveys to the Company, without recourse, or, except as set forth in Article 3,
representations or warranties,  all the right, title, and interest of the Trust in and to the mortgage loan identified on Schedule I attached hereto (the “Mortgage Loan”).

(b)               In accordance
with Section 3.17 of the Pooling and Servicing Agreement, the Trustee will deliver to the Company, or to such third party as the Company may direct, the documents comprising the Mortgage File with respect to the Mortgage Loan upon the Trustee’s receipt of the
Certification.  Upon payment for the Mortgage Loan pursuant to Section 2.1(c) below, the beneficial ownership of the Mortgage Note, the Mortgage, and each of the other documents comprising the Mortgage File with respect to the Mortgage Loan is and shall be
vested in the Company, and the ownership of all records and documents with respect to the Mortgage Loan prepared by or which come into the possession of the Trustee or any agent or designee thereof shall immediately vest in the Company and shall be delivered to the
Company or as the Company may otherwise direct.

(c)                In full
consideration for the sale of the Mortgage Loan pursuant to Section 2.1(a) hereof, and upon the terms and conditions of this Agreement, the Company hereby purchases the Mortgage Loan.

(d)               Subject to the
fulfillment of any other conditions to such [purchase/repurchase] under the Pooling and Servicing Agreement and following the deposit of the Purchase Price in the Collection Account and the Trustee’s receipt of the Certification, the Company shall own and be
entitled to receive with respect to the Mortgage Loan all Monthly Payments and all other recoveries of principal and interest.  All such amounts that are collected after the date of the deposit of the Purchase Price and the Trustee’s receipt of the
Certification shall be held and remitted by the Servicer to the Company in accordance with the terms of this Agreement.

ARTICLE 3.   REPRESENTATIONS AND WARRANTIES OF

THE TRUSTEE CONCERNING THE MORTGAGE LOAN

The Trustee hereby represents and warrants to, and agrees with the Company that, as to the Mortgage Loan and as of the date first written above:

The Trustee, to its actual knowledge has not taken any action with respect to the Mortgage Loans, other than at the direction of the Company, its attorneys and
subservicers or WaMu Asset Acceptance Corp., which would result in the imposition of any lien on, security interest in, or other encumbrance of, the real property securing the Mortgage Loan, other than permitted pursuant to the Pooling and Servicing Agreement, and
other than such action as might be required to preserve and maintain the Mortgage.

ARTICLE 4.   MISCELLANEOUS PROVISIONS

Section 4.1      Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of New York (including Section 5-1401 of the New York General Obligations Law) and the obligations, rights and
remedies of the parties hereunder shall be determined in accordance with such laws without giving effect to conflict of laws principles other than Section 5-1401 of the New York General Obligations Law.

Section 4.2      Severability of Provisions

If any one or more of the covenants, agreements, provisions, or terms of this Agreement shall be held invalid for any reason whatsoever, then such covenants, agreements, provisions, or terms shall be deemed
severable from the remaining covenants, agreements, provisions, or terms of this Agreement and shall in no way affect the validity or enforceability of the other covenants, agreements, provisions, or terms of this Agreement or the rights of the parties
hereunder.

Section 4.3      Schedules

The schedules to this Agreement are hereby incorporated and made a part hereof and are an integral part of this Agreement.

Section 4.4      Counterparts; Successors and Assigns

This Agreement may be executed in one or more counterparts, and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed to be an original; such
counterparts, together, shall constitute one and the same agreement.  This Agreement shall inure to the benefit of and be binding upon the Company and the Trustee.

                Section 4.5     
 Effect of Headings

The headings in this Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

Section 4.6      Survival

The representations, warranties, covenants and agreements of the parties provided in this Agreement and the parties’ obligations hereunder shall survive the execution, delivery and termination of this
Agreement.

Section 4.7      Costs

The Company shall pay all costs, fees and expenses incurred in connection with the transfer and delivery of the Mortgage Loan purchased by the Company under this Agreement.

 

[Signature page follows]

TO WITNESS THIS, the Company and the Trustee have caused their names to be signed to this Mortgage Loan Assignment Agreement by their duly authorized respective officers as of the day and year
first above written.

 

	
 

 

	
LASALLE BANK NATIONAL ASSOCIATION, as Trustee for Washington Mutual Asset-Backed Certificates WMABS Series 2006‐HE1 Trust and not in its individual capacity

 

By:     _________________________________

Name:____________________________

Title:  ____________________________

	
 

	
 

	
 

 

	
[_________________________________]

 

By:     _________________________________

Name:____________________________

 

Title:  ____________________________

 

 

STATE OF ____________________                   )

                                                                     
) ss.

COUNTY OF __________________                   )

 

This instrument was acknowledged before me on ______________________, 200___, by _____________________ as _________________________ of _________________________________.

Print Name_________________________

NOTARY PUBLIC in and for the State of _____________, residing at _______________________________________

 My commission expires _____________________

 

 

 

 STATE OF
                                                          
)

                                                                            
) ss.

COUNTY OF
                                                       
)

 

This instrument was acknowledged before me on ______________________, 200___, by _____________________ as _________________________ of LaSalle Bank National Association, as trustee for
Washington Mutual Asset-Backed Certificates WMABS Series 2006‐HE1 Trust and not in its individual capacity.

Print Name_________________________

NOTARY PUBLIC in and for the State of

                  , residing at _____________________

 My commission expires _____________________

 

 

	
Exhibit H-1

 

	
FORM OF ADDITIONAL MATTER INCORPORATED INTO THE FORM OF THE CERTIFICATES (OTHER THAN THE RESIDUAL AND CLASS P CERTIFICATES)

 

 

This Certificate does not represent an obligation of or interest in WaMu Asset Acceptance Corp. or any of its affiliates.  Neither this Certificate nor the underlying Mortgage Loans are guaranteed by
any agency or instrumentality of the United States.

This certifies that the above-named Registered Owner is the registered owner of certain interests in a pool of assets Trust consisting of, among other things, one- to four-family mortgage loans (the
“Mortgage Loans”), formed by WaMu Asset Acceptance Corp. (the “Company”), which term includes any successor entity under the Pooling Agreement referred to below.  The Trust was created pursuant to a Pooling and Servicing Agreement, dated
as of the Cut-Off Date stated above (the “Pooling Agreement”), among the Company, the Servicer, LaSalle Bank National Association, as Trustee (the “Trustee”), and Christiana Bank & Trust Company, as Delaware Trustee, a summary of certain
of the pertinent provisions of which is set forth hereafter.  To the extent not defined herein, the capitalized terms used herein have the meanings assigned in the Pooling Agreement.  Nothing herein shall be deemed inconsistent with such meanings, and in
the event of any conflict between the Pooling Agreement and the terms of this Certificate, the Pooling Agreement shall control.  This Certificate is issued under and is subject to the terms, provisions and conditions of the Pooling Agreement, to which Pooling
Agreement the Holder of this Certificate, by virtue of the acceptance hereof, assents and by which such Holder is bound.

Distributions will be made, pursuant to the Pooling Agreement, on the 25th day of each month or, if such 25th day is not a Business Day, the Business Day immediately following (the “Distribution
Date”), commencing on the first Distribution Date specified above, to the Person in whose name this Certificate is registered at the close of business on the Record Date, to the extent of such Certificateholder’s Percentage Interest represented by this
Certificate in the portion (if any) then distributable on the Certificates of this Class, as specified in Section 4.01 of the Pooling Agreement.

Distributions on this Certificate will be made by the Trustee by wire transfer or check mailed to the address of the Person entitled thereto, as such name and address shall appear on the Certificate
Register.  Notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate to the Certificate
Registrar.

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

Unless the certificate of authentication hereon has been executed by or on behalf of the Trustee, by manual signature, this Certificate shall not be entitled to any benefit under the Pooling Agreement or be
valid for any purpose.

IN WITNESS WHEREOF, the Trust has caused this Certificate to be duly executed.

 

	
 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATES WMABS SERIES 2006-HE1 TRUST

 

	
 

	
By:

	
LASALLE BANK NATIONAL ASSOCIATION, as Trustee

 

	
 

	
 

	
 

 

By:  _____________________________________

 

 

 

	
(TRUSTEE’S CERTIFICATE OF AUTHENTICATION)

 

 

This is one of the Certificates referred to in the within-mentioned Pooling Agreement.

LASALLE BANK NATIONAL ASSOCIATION,

as Trustee

 

By: _____________________________________

 

Dated: ___________________________________

 

 

	
WaMu ASSET ACCEPTANCE CORP.

WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

 

This Certificate is one of a duly authorized issue of Certificates designated as Washington Mutual Asset-Backed Certificates of the Series and Class specified hereon (herein called the
“Certificates”) and representing certain interests in the Trust.

The Certificates do not represent an obligation of, or an interest in, the Company or any of its affiliates and are not insured or guaranteed by any governmental agency.  The Certificates are limited in
right of payment to certain collections and recoveries respecting the Mortgage Loans and other assets of the Trust, all as more specifically set forth herein and in the Pooling Agreement.  In the event funds are advanced with respect to any Mortgage Loan, such
advance is reimbursable to the Servicer from the related recoveries on such Mortgage Loan or from amounts received with respect to other Mortgage Loans to the extent that such advance is not otherwise recoverable.

As provided in the Pooling Agreement, withdrawals from the Distribution Account may be made from time to time for purposes other than distributions to Certificateholders, such purposes including
reimbursement to the Servicer of advances made, or certain expenses incurred, by it.

The Pooling Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Certificateholders under
the Pooling Agreement at any time by the Company, the Servicer and the Trustee with the consent of the Holders of the Certificates evidencing Percentage Interests aggregating not less than 66% and the NIMS Insurer.  Any such consent by the Holder of this
Certificate shall be conclusive and binding on such Holder and upon all future Holders of this Certificate and of any Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent is made upon this
Certificate.  The Pooling Agreement also permits the amendment thereof, in certain limited circumstances, without the consent of the Holders of any of the Certificates.

As provided in the Pooling Agreement and subject to certain limitations therein set forth, the transfer of this Certificate is registrable in the Certificate Register upon surrender of this Certificate for
registration of transfer at the office of the Certificate Registrar or the office maintained by the Trustee in the City and State of New York, duly endorsed by, or accompanied by an assignment in the form below or other written instrument of transfer in form
satisfactory to the Trustee or any Authenticating Agent duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of Authorized Denominations evidencing the same Percentage Interest set
forth hereinabove will be issued to the designated transferee or transferees.

[to be used only in the case of the Class C Certificates:]  [No transfer, sale, pledge or other disposition of a Certificate of this Class shall be made unless such disposition is exempt from the
registration requirements of the Securities Act, and any applicable state securities laws or is made in accordance with the Securities Act and laws.  In the event that a transfer is to be made in reliance upon an exemption from the Securities Act and such laws,
in order to assure compliance with the Act and such laws, the Certificateholder desiring to effect such transfer and such Certificateholder’s prospective transferee shall each certify to the Trustee and the Company in writing the facts surrounding the
transfer.  In the event that such a transfer is not to be made pursuant to Rule 144A of the Act, there shall be delivered to the Trustee and the Company an Opinion of Counsel that such transfer may be made pursuant to an exemption from the Securities Act, which
Opinion of Counsel shall not be obtained at the expense of the Trustee, the Servicer or the Company; or there shall be delivered to the Trustee and the Company a transferor certificate by the transferor and an investment letter shall be executed by the
transferee.  The Holder hereof desiring to effect such transfer shall, and does hereby agree to, indemnify the Trustee and the Company against any liability that may result if the transfer is not so exempt or is not made in accordance with such federal and state
laws.]

No transfer of this Certificate to a Plan subject to ERISA or Section 4975 of the Code, any Person acting, directly or indirectly, on behalf of any such Plan or any person using Plan Assets to acquire this
Certificate shall be made except in accordance with section 5.01(e) of the Pooling Agreement.

The Certificates are issuable only as registered Certificates without coupons in Authorized Denominations specified in the Pooling Agreement.  As provided in the Pooling Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new Certificates of Authorized Denominations of like Certificate Principal Balance or Percentage Interest, as applicable, as requested by the Holder surrendering the same.

No service charge may be made for any such registration of transfer or exchange, but the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection
therewith.

The Company, the Servicer, the Trust, the Trustee, the Delaware Trustee, the NIMS Insurer and any agent of any of them may treat the Person in whose name this Certificate is registered as the owner hereof
for all purposes, and none of the Company, the Servicer, the Trust, the Trustee, the Delaware Trustee, the NIMS Insurer nor any agent thereof shall be affected by notice to the contrary.

The obligations created by the Pooling Agreement and the Trust created thereby shall terminate upon (i) the later of the final payment or other liquidation (including purchase by the Terminator) of the last
Mortgage Loan owned by the Trust or the disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan, and (ii) the payment to Certificateholders of all amounts required to be paid to them pursuant to the Pooling
Agreement.  The Pooling Agreement permits, but does not require, the Terminator to purchase from the Trust all Mortgage Loans at the time subject thereto and all property acquired by the Trust in respect of any Mortgage Loan upon payment to the
Certificateholders of the amounts specified in the Pooling Agreement.  The exercise of such right will effect early retirement of the Certificates, the Terminator’s right to purchase being subject to the aggregate Principal Balance of the Mortgage Loans at
the time of purchase being less than the percentage of the aggregate Principal Balance of the Mortgage Loans as of the Cut-Off Date specified in the Pooling Agreement and other limitations.

 

	
ASSIGNMENT

 

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

____________________________________________________________________________________

____________________________________________________________________________________

(Please print or typewrite name and address, including postal zip code of assignee.  Please insert social security or other identifying number of assignee.)

the within WaMu Asset-Backed Certificate and hereby irrevocably constitutes and appoints

____________________________________________________________________________________

 

Attorney to transfer said Certificate on the Certificate Register, with full power of substitution in the premises.

  

	

Dated: ______________________

	

 

	

_________________________________________

	
 

	
 

	
Signature Guaranteed

____________________________________________________________________________________

NOTICE:   The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change
whatever.  This Certificate does not represent an obligation of or an interest in WaMu Asset Acceptance Corp. or any of its affiliates.  Neither this Certificate nor the underlying Mortgage Loans are guaranteed by any agency or instrumentality of the United
States.

 

	
Exhibit H-2

 

	
FORM OF ADDITIONAL MATTER INCORPORATED INTO

 THE FORM OF THE CLASS P CERTIFICATES

 

This Certificate does not represent an obligation of or interest in WaMu Asset Acceptance Corp. or any of its affiliates.  Neither this Certificate nor the underlying Mortgage Loans are guaranteed by
any agency or instrumentality of the United States.

This certifies that the above-named Registered Owner is the registered owner of certain interests in (i) a pool of assets (“Trust”) consisting of, among other things, one- to four-family mortgage
loans (the “Mortgage Loans”), formed by WaMu Asset Acceptance Corp. (the “Company”).  The Trust was created pursuant to a Pooling and Servicing Agreement, dated as of the Cut-Off Date stated above (the “Pooling Agreement”),
among the Company, the Servicer, LaSalle Bank National Association, as Trustee (the “Trustee”), and Christiana Bank & Trust Company, as Delaware Trustee, a summary of certain of the pertinent provisions of which is set forth hereafter.  To the
extent not defined herein, the capitalized terms used herein have the meanings assigned in the Pooling Agreement.  Nothing herein shall be deemed inconsistent with such meanings, and in the event of any conflict between the Pooling Agreement and the terms of
this Certificate, the Pooling Agreement shall control.  This Certificate is issued under and is subject to the terms, provisions and conditions of the Pooling Agreement, to which Pooling Agreement the Holder of this Certificate, by virtue of the acceptance
hereof, assents and by which such Holder is bound.

Distributions will be made, pursuant to the Pooling Agreement, on the 25th day of each month or, if such 25th day is not a Business Day, the Business Day immediately following (the “Distribution
Date”), commencing on the first Distribution Date specified above, to the Person in whose name this Certificate is registered at the close of business on the Record Date, to the extent of such Certificateholder’s Percentage Interest represented by this
Certificate in the portions (if any) then distributable on the Certificates of this Class pursuant to Section 4.01 of the Pooling Agreement.

Distributions on this Certificate will be made by the Trustee by wire transfer or check mailed to the address of the Person entitled thereto, as such name and address shall appear on the Certificate
Register.  Notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate to the Certificate
Registrar.

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

Unless the certificate of authentication hereon has been executed by or on behalf of the Trustee, by manual signature, this Certificate shall not be entitled to any benefit under the Pooling Agreement or be
valid for any purpose.

IN WITNESS WHEREOF, the Trust has caused this Certificate to be duly executed.

	
 

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATES WMABS SERIES 2006-HE1 TRUST

 

	
 

	
By:

	
LASALLE BANK NATIONAL ASSOCIATION, as Trustee

 

	
 

	
 

	
 

 

By:  _____________________________________

 

	
(TRUSTEE’S CERTIFICATE OF AUTHENTICATION)

 

This is one of the Certificates referred to in the within-mentioned Pooling Agreement.

LASALLE BANK NATIONAL ASSOCIATION,

as Trustee

 

By: ___________________________________

 

Dated: _________________________________

 

	
WaMu ASSET ACCEPTANCE CORP.

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

 

This Certificate is one of a duly authorized issue of Certificates designated as Washington Mutual Asset-Backed Certificates of the Series and Class specified hereon (herein called the
“Certificates”) and representing certain interests in the Trust.

The Certificates do not represent an obligation of, or an interest in, the Company or any of its affiliates and are not insured or guaranteed by any governmental agency.  The Certificates are limited in
right of payment to certain collections and recoveries respecting the Mortgage Loans and other assets of the Trust, all as more specifically set forth herein and in the Pooling Agreement.  In the event funds are advanced with respect to any Mortgage Loan, such
advance is reimbursable to the Servicer from the related recoveries on such Mortgage Loan or from amounts received with respect to other Mortgage Loans to the extent that such advance is not otherwise recoverable.

As provided in the Pooling Agreement, withdrawals from the Distribution Account may be made from time to time for purposes other than distributions to Certificateholders, such purposes including
reimbursement to the Servicer of advances made, or certain expenses incurred, by it.

The Pooling Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Certificateholders under
the Pooling Agreement at any time by the Company, the Servicer and the Trustee with the consent of the Holders of the Certificates evidencing Percentage Interests aggregating not less than 66% and the NIMS Insurer provided, however, that any such
amendment that modifies the rights of the Class P Certificateholders to receive Assigned Prepayment Premiums shall require the consent of each Class P Certificateholder.  Any such consent by the Holder of this Certificate shall be conclusive and binding on such
Holder and upon all future Holders of this Certificate and of any Certificate issued upon the transfer hereof or in exchange her3for or in lieu hereof whether or not notation of such consent is made upon this Certificate.  The Pooling Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the Holders of any of the Certificates.

As provided in the Pooling Agreement and subject to certain limitations therein set forth, the transfer of this Certificate is registrable in the Certificate Register upon surrender of this Certificate for
registration of transfer at the office of the Certificate Registrar or the office maintained by the Trustee in the City and State of New York, duly endorsed by, or accompanied by an assignment in the form below or other written instrument of transfer in form
satisfactory to the Trustee or any Authenticating Agent duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of Authorized Denominations evidencing the same Percentage Interest set
forth hereinabove will be issued to the designated transferee or transferees.

No transfer, sale, pledge or other disposition of a Certificate of this Class shall be made unless such disposition is exempt from the registration requirements of the Securities Act, and any applicable
state securities laws or is made in accordance with the Securities Act and laws.  In the event that a transfer is to be made in reliance upon an exemption from the Securities Act and such laws, in order to assure compliance with the Act and such laws, the
Certificateholder desiring to effect such transfer and such Certificateholder’s prospective transferee shall each certify to the Trustee and the Company in writing the facts surrounding the transfer.  In the event that such a transfer is not to be made
pursuant to Rule 144A of the Act, there shall be delivered to the Trustee and the Company an Opinion of Counsel that such transfer may be made pursuant to an exemption from the Securities Act, which Opinion of Counsel shall not be obtained at the expense of the
Trustee, the Servicer or the Company; or there shall be delivered to the Trustee and the Company a transferor certificate by the transferor and an investment letter shall be executed by the transferee.  The Holder hereof desiring to effect such transfer shall,
and does hereby agree to, indemnify the Trustee and the Company against any liability that may result if the transfer is not so exempt or is not made in accordance with such federal and state laws.

No transfer of this Certificate to a Plan subject to ERISA or Section 4975 of the Code, any Person acting, directly or indirectly, on behalf of any such Plan or any person using Plan Assets to acquire this
Certificate shall be made except in accordance with Section 5.02(d) of the Pooling Agreement.

The Certificates are issuable only as registered Certificates without coupons in Authorized Denominations specified in the Pooling Agreement.  As provided in the Pooling Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new Certificates of Authorized Denominations of like Certificate Principal Balance or Percentage Interest, as applicable, as requested by the Holder surrendering the same.

No service charge may be made for any such registration of transfer or exchange, but the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection
therewith.

The Company, the Servicer, the Trust, the Trustee, the Delaware Trustee, the NIMS Insurer and any agent of any of them may treat the Person in whose name this Certificate is registered as the owner hereof
for all purposes, and none of the Company, the Servicer, the Trust, the Trustee, the Delaware Trustee, the NIMS Insurer nor any agent thereof shall be affected by notice to the contrary.

The obligations created by the Pooling Agreement and the Trust created thereby shall terminate upon (i) the later of the final payment or other liquidation (including purchase by the Terminator) of the last
Mortgage Loan owned by the Trust or the disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan, and (ii) the payment to Certificateholders of all amounts required to be paid to them pursuant to the Pooling
Agreement.  The Pooling Agreement permits, but does not require, the Terminator to purchase from the Trust all Mortgage Loans at the time subject thereto and all property acquired by the Trust in respect of any Mortgage Loan upon payment to the
Certificateholders of the amounts specified in the Pooling Agreement.  The exercise of such right will effect early retirement of the Certificates, the Terminator’s right to purchase being subject to the aggregate Principal Balance of the Mortgage Loans at
the time of purchase being less than the percentage of the aggregate Principal Balance of the Mortgage Loans as of the Cut-Off Date specified in the Pooling Agreement and other limitations.

 

	
ASSIGNMENT

 

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

____________________________________________________________________________________

____________________________________________________________________________________ 

(Please print or typewrite name and address, including postal zip code of assignee.  Please insert social security or other identifying number of assignee.)

the within WaMu Mortgage Pass-Through Certificate and hereby irrevocably constitutes and appoints

____________________________________________________________________________________ 

Attorney to transfer said Certificate on the Certificate Register, with full power of substitution in the premises.

	

Dated:  _____________________

	

 

	

___________________________________________

	
 

	
 

	
Signature Guaranteed

 

____________________________________________________________________________________

NOTICE:   The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change
whatever.  This Certificate does not represent an obligation of or an interest in WaMu Asset Acceptance Corp. or any of its affiliates.  Neither this Certificate nor the underlying Mortgage Loans are guaranteed by any agency or instrumentality of the United
States.

 

	
 

	

Exhibit H-2

FORM OF ADDITIONAL MATTER INCORPORATED INTO

THE FORM OF THE RESIDUAL CERTIFICATES

 

This Certificate does not represent an obligation of or interest in Washington Mutual Mortgage Securities Corp. or any of its affiliates.  Neither this Certificate nor
the underlying Mortgage Loans are guaranteed by any agency or instrumentality of the United States.

This certifies that the above-named Registered Owner is the registered owner of certain interests in (i) a pool of assets (“Trust”) consisting of, among other
things, one- to four-family mortgage loans (the “Mortgage Loans”), formed by WaMu Asset Acceptance Corp. (the “Company”).  The Trust was created pursuant to a Pooling and Servicing Agreement, dated as of the Cut-Off Date stated above (the
“Pooling Agreement”), among the Company, the Servicer, LaSalle Bank National Association, as Trustee (the “Trustee”), and Christiana Bank & Trust Company, as Delaware Trustee, a summary of certain of the pertinent provisions of
which is set forth hereafter.  To the extent not defined herein, the capitalized terms used herein have the meanings assigned in the Pooling Agreement.  Nothing herein shall be deemed inconsistent with such meanings, and in the event of any conflict between
the Pooling Agreement and the terms of this Certificate, the Pooling Agreement shall control.  This Certificate is issued under and is subject to the terms, provisions and conditions of the Pooling Agreement, to which Pooling Agreement the Holder of this
Certificate, by virtue of the acceptance hereof, assents and by which such Holder is bound.

Distributions will be made, pursuant to the Pooling Agreement, on the 25th day of each month or, if such 25th day is not a Business Day, the Business Day immediately following
(the “Distribution Date”), commencing on the first Distribution Date specified above, to the Person in whose name this Certificate is registered at the close of business on the Record Date, to the extent of such Certificateholder’s Percentage
Interest represented by this Certificate in the portions (if any) then distributable on the Certificates of this Class pursuant to Section 4.01 of the Pooling Agreement.

Distributions on this Certificate will be made by the Trustee by wire transfer or check mailed to the address of the Person entitled thereto, as such name and address shall
appear on the Certificate Register.  Notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate to the
Certificate Registrar.

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

Unless the certificate of authentication hereon has been executed by or on behalf of the Trustee, by manual signature, this Certificate shall not be entitled to any benefit under the Pooling Agreement or be
valid for any purpose.

IN WITNESS WHEREOF, the Trust has caused this Certificate to be duly executed.

	
 

	

WASHINGTON MUTUAL ASSET-BACKED CERTIFICATES, WMABS SERIES 2006-HE1 TRUST

	

 

	

 

	

 

	
 

	

By:

	

LASALLE BANK NATIONAL ASSOCIATION, as Trustee

	
 

	
 

	
 

	
 

	

By:

	

______________________________________

 

 (TRUSTEE’S CERTIFICATE OF AUTHENTICATION)

This is one of the Certificates referred to in the within-mentioned Pooling Agreement.

	

LASALLE BANK NATIONAL ASSOCIATION, as Trustee

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

______________________________________

	
 

	

Dated:

	

______________________________________

	
 

 

WaMu ASSET ACCEPTANCE CORP.

WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

This Certificate is one of a duly authorized issue of Certificates designated as Washington Mutual Asset-Backed Certificates of the Series and Class specified hereon (herein called the
“Certificates”) and representing certain interest in the Trust.

The Certificates do not represent an obligation of, or an interest in, the Company or any of its affiliates and are not insured or guaranteed by any governmental agency.  The Certificates are limited in
right of payment to certain collections and recoveries respecting the Mortgage Loans and other assets of the Trust, all as more specifically set forth herein and in the Pooling Agreement.  In the event funds are advanced with respect to any Mortgage Loan
or from amounts received with respect to other Mortgage Loans to the extent that such advance is not otherwise recoverable.

As provided in the Pooling Agreement, withdrawals from the Distribution Account may be made from time to time for purposes other than distributions to Certificateholders, such purposes including
reimbursement to the Servicer of advances made, or certain expenses incurred, by it.

The Pooling Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Certificateholders under
the Pooling Agreement at any time by the Company, the Servicer and the Trustee with the consent of the Holders of the Certificates evidencing Percentage Interests aggregating not less than 66% and the NIMS Insurer.  The Pooling Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the Holders of any of the Certificates.

As provided in the Pooling Agreement and subject to certain limitations therein set forth, the transfer of this Certificate is registrable in the Certificate Register upon surrender of this
Certificate for registration of transfer at the office of the Certificate Registrar or the office maintained by the Trustee in the City and State of New York, duly endorsed by, or accompanied by an assignment in the form below or other written instrument of transfer
in form satisfactory to the Trustee or any Authenticating Agent duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of Authorized Denominations evidencing the same Percentage
Interest set forth hereinabove will be issued to the designated transferee or transferees.

No transfer, sale, pledge or other disposition of a Certificate of this Class shall be made unless such disposition is exempt from the registration requirements of the Securities Act, and any applicable
state securities laws or is made in accordance with the Securities Act and laws.  In the event that a transfer is to be made in reliance upon an exemption from the Securities Act and such laws, in order to assure compliance with the Act and such laws, the
Certificateholder desiring to effect such transfer and such Certificateholder’s prospective transferee shall each certify to the Trustee and the Company in writing the facts surrounding the transfer.  In the event that such a transfer is not to be made
pursuant to Rule 144A of the Act, there shall be delivered to the Trustee and the Company an Opinion of Counsel that such transfer may be made pursuant to an exemption from the Securities Act, which Opinion of Counsel shall not be obtained at the expense of the
Trustee, the Servicer or the Company; or there shall be delivered to the Trustee and the Company a transferor certificate by the transferor and an investment letter shall be executed by the transferee.  The Holder hereof desiring to effect such transfer shall,
and does hereby agree to, indemnify the Trustee and the Company against any liability that may result if the transfer is not so exempt or is not made in accordance with such federal and state laws.

No transfer of this Certificate to a Plan subject to ERISA or Section 4975 of the Code, any Person acting, directly or indirectly, on behalf of any such Plan or any person using Plan Assets to acquire this
Certificate shall be made.

The Certificates are issuable only as registered Certificates without coupons in Authorized Denominations specified in the Pooling Agreement.  As provided in the Pooling Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new Certificates of Authorized Denominations of like Certificate Principal Balance or Percentage Interest, as applicable, as requested by the Holder surrendering the same.

No service charge may be made for any such registration of transfer or exchange, but the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection
therewith.

The Company, the Servicer, the Trust, the Trustee, the Delaware Trustee, the NIMS Insurer and any agent of any of them may treat the Person in whose name this Certificate is registered as the owner hereof
for all purposes, and none of the Company, the Servicer, the Trust, the Trustee, the Delaware Trustee, the NIMS Insurer nor any agent thereof shall be affected by notice to the contrary.

The obligations created by the Pooling Agreement and the Trust created thereby shall terminate upon (i) the later of the final payment or other liquidation (including purchase by the Terminator) of the last
Mortgage Loan owned by the Trust or the disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan, and (ii) the payment to Certificateholders of all amounts required to be paid to them pursuant to the Pooling
Agreement.  The Pooling Agreement permits, but does not require, the Terminator to purchase from the Trust all Mortgage Loans at the time subject thereto and all property acquired by the Trust in respect of any Mortgage Loan upon payment to the
Certificateholders of the amounts specified in the Pooling Agreement.  The exercise of such right will effect early retirement of the Certificates, the Terminator’s right to purchase being subject to the aggregate Principal Balance of the Mortgage Loans at
the time of purchase being less than the percentage of the aggregate Principal Balance of the Mortgage Loans as of the Cut-Off Date specified in the Pooling Agreement and other limitations.

ASSIGNMENT

	

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

	

                                                                                                                                                           
                                                                                                                                                           
                                                                                                                                   

	

                                                                                                                                                           
                                                                                                                                                           
                                                                                                                                                           

	

(Please print or typewrite name and address, including postal zip code of assignee.  Please insert social security or other identifying number of assignee.)

	

the within Washington Mutual Asset-Backed Certificate and hereby irrevocably constitutes and appoints

	

                                                                                                                                                           
                                                                                                                                                           
                                                                                   

	

Attorney to transfer said Certificate on the Certificate Register, with full power of substitution in the premises.

 

	

Dated:

	

                                               

	
                                                                                                               

 Signature Guaranteed

 

	

                                                                                                                                                           

	

NOTICE:  The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or
enlargement or any change whatever.  This Certificate does not represent an obligation of or an interest in Washington Mutual Mortgage Securities Corp. or any of its affiliates.  Neither this Certificate nor the underlying Mortgage Loans are guaranteed by
any agency or instrumentality of the United States.

 

 

	
Exhibit I

 

	
TRANSFEROR CERTIFICATE FOR RESIDUAL CERTIFICATES

	
 

	
 

	
April [__], 2006

  

LaSalle Bank National Association, as Trustee

135 South LaSalle Street, Suite 1625

Chicago, Illinois, 60603

Attention: Global Securitization Trust Services

Re:      WaMu Asset Acceptance Corp. Washington Mutual Asset-Backed Certificates, WMABS Series 2006-HE1, Residual

Ladies and Gentlemen:

This letter is delivered to you in connection with the sale from
                                          (the
“Seller”) to           
                                    (the “Purchaser”) of ___% Percentage
Interest of Washington Mutual Asset-Backed Certificates, WMABS Series 2006-HE1, Residual (the “Certificate”), pursuant to Section 5.01 of the Pooling and Servicing Agreement (the “Pooling Agreement”), dated as of April 1, 2006 among WaMu Asset
Acceptance Corp., as Company (the “Company”), Washington Mutual Bank, as servicer (the “Servicer”), LaSalle Bank National Association, as trustee (the “Trustee”), and Christiana Bank & Trust Company, as Delaware trustee. 
All terms used herein and not otherwise defined shall have the meanings set forth in the Pooling Agreement.  The Seller hereby certifies, represents and warrants to, and covenants with, the Company, the Servicer, the Trustee and the Trust that:

1.         No purpose of the Seller relating to the sale of the Certificate by the Seller to the Purchaser is or will be to enable the Seller to impede the assessment
or collection of tax.

2.         The Seller understands that the Purchaser has delivered to the Trustee and the Company a transferee affidavit and agreement in the form attached to the
Pooling Agreement as Exhibit J.  The Seller does not know or believe that any representation contained therein is false.

3.         The Seller has no actual knowledge that the proposed Transferee is not a Permitted Transferee.

4.         The Seller has no actual knowledge that the Purchaser would be unwilling or unable to pay taxes due on its share of the taxable income attributable to the
Certificates.

5.         The Seller has conducted a reasonable investigation of the financial condition of the Purchaser and, as a result of the investigation, found that the
Purchaser has historically paid its debts as they came due, and found no significant evidence to indicate that the Purchaser will not continue to pay its debts as they come due in the future.

6.         The Purchaser has represented to the Seller that, if the Certificates constitute a noneconomic residual interest, it (i) understands that as holder of a
noneconomic residual interest it may incur tax liabilities in excess of any cash flows generated by the interest, and (ii) intends to pay taxes associated with its holding of the Certificates as they become due.

	
 

	
Very truly yours,

 

[Seller]

 

By:  __________________________________

            Name: __________________________

            Title: ___________________________

 

 

 

	
Exhibit J

 

 

	
TRANSFEREE AFFIDAVIT AND AGREEMENT FOR RESIDUAL CERTIFICATES

 

 

	
STATE OF

	
_________________________

	
)

	
 

	
 

	
 

	
)

	
ss:

	
COUNTY OF

	
_________________________

	
)

	
 

 

 

[NAME OF OFFICER], being first duly sworn, deposes and says:

1.         That he is [Title of Officer] of [Name of Owner] (record or beneficial owner of the Residual Certificate (the “Owner”)), a [savings institution]
[corporation] duly organized and existing under the laws of [the State of                   ] [the United States], on behalf of which he makes this affidavit and
agreement.

2.         That the Owner (i) is not and will not be a “disqualified organization” as of [date of transfer] within the meaning of Section 860E(e)(5) of the
Internal Revenue Code of 1986, as amended (the “Code”) and will endeavor to remain other than a disqualified organization for so long as it retains its ownership interest in the Residual Certificates, and (ii) is acquiring the Residual Certificates for
its own account or for the account of another Owner from which it has received an affidavit and agreement in substantially the same form as this affidavit and agreement.  (For this purpose, a disqualified organization” means the United States, any state or
political subdivision thereof, or any agency or instrumentality of any of the foregoing (other than an instrumentality all of the activities of which are subject to tax and, except for the Federal Home Loan Mortgage Corporation, a majority of whose board of directors
is not selected by any such governmental entity), or any foreign government or international organization, or any agency or instrumentality of such foreign government or organization, any rural electric or telephone cooperative, or any organization (other than
certain farmers’ cooperatives) that is generally exempt from federal income tax unless such organization is subject to the tax on unrelated business taxable income).

3.         That the Owner is aware (i) of the tax that would be imposed on transfers of the Residual Certificates after March 31, 1988; (ii) that such tax would be on
the transferor, or, if such transfer is through an agent (which person includes a broker, nominee or middle-man) for a disqualified organization, on the agent; (iii) that the person otherwise liable for the tax shall be relieved of liability for the tax if the
transferee furnishes to such person an affidavit that the transferee is not a disqualified organization and, at the time of transfer, such person does not have actual knowledge that the affidavit is false; and (iv) that the Residual Certificates may be a
“noneconomic residual interest” within the meaning of Treasury regulations promulgated pursuant to the Code and that the transferor of a noneconomic residual interest will remain liable for any taxes due with respect to the income on such residual
interest, if a significant purpose of the transfer was to enable the transferor to impede the assessment or collection of tax.

4.         That the Owner is aware of the tax imposed on a “pass-through entity” holding the Residual Certificates if at any time during the taxable year
of the pass-through entity a disqualified organization is the record holder of an interest in such entity.  (For this purpose, a “pass through entity” includes a regulated investment company, a real estate investment trust or common trust fund, a
partnership, trust or estate, and certain cooperatives.)

5.         That the Owner is aware that the Trustee will not register the Transfer of the Residual Certificates unless the transferee, or the transferees’ agent,
delivers to it an affidavit and agreement, among other things, in substantially the same form as this affidavit and agreement.  The Owner expressly agrees that it will not consummate any such transfer if it knows or believes that any of the representations
contained in such affidavit and agreement are false.

6.         That the Owner has reviewed the restrictions set forth on the face of the Residual Certificates and the provisions of Section 5.01 of the Pooling Agreement
under which the Residual Certificates were issued (in particular, clauses (iii)(A) and (iii)(B) of Section 5.01(c) which authorize the Trustee to deliver payments to a person other than the Owner and negotiate a mandatory sale by the Trustee in the event the Owner
holds such Certificates in violation of Section 5.01).  The Owner expressly agrees to be bound by and to comply with such restrictions and provisions.

7.         That the Owner consents to any additional restrictions or arrangements that shall be deemed necessary upon advice of counsel to constitute a reasonable
arrangement to ensure that the Residual Certificates will only be owned, directly or indirectly, by an Owner that is not a disqualified organization.

8.         The Owner’s Taxpayer Identification Number is
                               .

9.         That no purpose of the Owner relating to the purchase of the Residual Certificates by the Owner is or will be to enable the transferor to impede the
assessment or collection of tax, and that in making this representation, the Owner warrants that the Owner is familiar with Treasury Regulation 1.860E-1(c) and with the preamble to the adoption of amendments to that regulation as of July 19, 2002, attached hereto as
Exhibit 1.

10.        That the Owner anticipates that it will, so long as it holds the Residual Certificates, have sufficient assets to pay any taxes owed by the holder of such
Certificates, and hereby represents to and for the benefit of the person from whom it acquired the Residual Certificates that the Owner intends to pay taxes associated with holding such Certificates as they become due, fully understanding that it may incur tax
liabilities in excess of any cash flows generated by the Residual Certificates.  That the Owner has provided financial statements or other financial information requested by the transferor in connection with the transfer of the Residual Certificates to permit
the transferor to assess the financial capability of the Owner to pay such taxes.

11.        That the Owner has no present knowledge or expectation that it will be unable to pay any United States taxes owed by it so long as any of the Residual
Certificates remain outstanding.

12.        That the Owner has no present knowledge or expectation that it will become insolvent or subject to a bankruptcy proceeding for so long as any of the Residual
Certificates remain outstanding.

13.        That the Owner is familiar with Treasury Regulation 1.860E-1(c) and with the preamble to the adoption of amendments to that regulation as of July 19, 2002,
attached hereto as Exhibit 1, and that no purpose of the Owner relating to any sale of the Residual Certificates by the Owner will be to impede the assessment or collection of tax.

14.        The Owner is a citizen or resident of the United States, a corporation, partnership or other entity treated as a partnership or corporation for U.S. federal
income tax purposes created or organized in, or under the laws of, the United States or any state thereof or the District of Columbia, or an estate or trust whose income from sources without the United States is includible in gross income for United States federal
income tax purposes regardless of its connection with the conduct of a trade or business within the United States.

15.        The Owner hereby agrees that it will not cause income from the Residual Certificates to be attributable to a foreign permanent establishment or fixed base
(within the meaning of an applicable income tax treaty) of the Owner or another United States taxpayer.

16.        The Owner hereby agrees to cooperate with the Company and to take any action required of it by the Code or Treasury regulations thereunder (whether now or
hereafter promulgated) in order to create or maintain the REMIC status of each REMIC under the Pooling Agreement (the “REMICs”).

17.        The Owner hereby agrees that it will not take any action that could endanger the REMIC status of the REMICs or result in the imposition of tax on the REMICs
unless counsel for, or acceptable to, the Company has provided an opinion that such action will not result in the loss of such REMIC status or the imposition of such tax, as applicable.

18.        The Owner as transferee of the Residual Certificates has represented to the transferor that, if the Residual Certificates constitute a noneconomic residual
interest, the Owner (i) understands that as holder of a noneconomic residual interest it may incur tax liabilities in excess of any cash flows generated by the interest, and (ii) intends to pay taxes associated with its holding of the Residual Certificates as they
become due.

IN WITNESS WHEREOF, the Owner has caused this instrument to be executed on its behalf, pursuant to the authority of its Board of Directors, by its [Title of Officer] and its corporate seal to be hereunto
attached, attested by its [Assistant] Secretary, this           day of          , 20     .

 

	
 

	
[Name of Owner]

 

 

By:  __________________________________

[Name of Officer]

[Title of Officer

 

	
[Corporate Seal]

 

ATTEST:

 

[Assistant Secretary]

	
 

 

Personally appeared before me the above-named [Name of Officer], known or proved to me to be the same person who executed the foregoing instrument and to be the [Title of Officer] of the Owner, and
Acknowledged to me that he executed the same as his free act and deed and the free act and deed of the Owner.

Subscribed and sworn before me this ___ day of __________________, 20__.

 

	
 

	
NOTARY PUBLIC

 

COUNTY OF ________________________________

STATE OF __________________________________

My commission expires the        day of                    ,
20      .

 

 

 

	
Exhibit 1 to Transferee Affidavit

 

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 9004]

RIN 1545-AW98

Real Estate Mortgage Investment Conduits

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

 

-----------------------------------------------------------------------

 

	
SUMMARY:

	
This document contains final regulations relating to safe harbor transfers of noneconomic residual interests in real estate mortgage investment conduits (REMICs).  The final regulations provide
additional limitations on the circumstances under which transferors may claim safe harbor treatment.

	
 

	
 

	
DATES:

	
Effective Date: These regulations are effective July 19, 2002.  Applicability Date: For dates of applicability, see Sec. 1.860E-(1)(c)(10).

	
 

	
 

	
FOR FURTHER INFORMATION CONTACT:

	
Courtney Shepardson at (202) 622-3940

(not a toll-free number).

			

 

SUPPLEMENTARY INFORMATION:

 

Paperwork Reduction Act

 

The collection of information in this final rule has been reviewed and, pending receipt and evaluation of public comments, approved by the Office of Management and Budget (OMB) under 44 U.S.C. 3507 and
assigned control number 1545-1675.  The collection of information in this regulation is in Sec. 1.860E-1(c)(5)(ii).  This information is required to enable the IRS to verify that a taxpayer is complying with the conditions of this regulation.  The
collection of information is mandatory and is required.  Otherwise, the taxpayer will not receive the benefit of safe harbor treatment as provided in the regulation.  The likely respondents are businesses and other for-profit institutions.

Comments on the collection of information should be sent to the Office of Management and Budget, Attn: Desk Officer for the Department of the Treasury, Office of Information and Regulatory Affairs,
Washington, DC, 20503, with copies to the Internal Revenue Service, Attn: IRS Reports Clearance Officer, W:CAR:MP:FP:S, Washington, DC 20224.  Comments on the collection of information should be received by September 17, 2002.  Comments are specifically
requested concerning: 

Whether the collection of information is necessary for the proper performance of the functions of the Internal Revenue Service, including whether the information will have practical
utility; 

The accuracy of the estimated burden associated with the collection of information (see below);

How the quality, utility, and clarity of the information to be collected may be enhanced;

How the burden of complying with the collection of information may be minimized, including through the application of automated collection techniques or other forms of information technology;
and

Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of service to provide information.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by the Office of Management and
Budget.

The estimated total annual reporting burden is 470 hours, based on an estimated number of respondents of 470 and an estimated average annual burden hours per respondent of one hour.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law.  Generally, tax returns and tax
return information are confidential, as required by 26 U.S.C. 6103.

Background

This document contains final regulations regarding the proposed amendments to 26 CFR part 1 under section 860E of the Internal Revenue Code (Code).  The regulations provide the circumstances under which
a transferor of a noneconomic REMIC residual interest meeting the investigation and representation requirements may avail itself of the safe harbor by satisfying either the formula test or the asset test.

Final regulations governing REMICs, issued in 1992, contain rules governing the transfer of noneconomic REMIC residual interests.  In general, a transfer of a noneconomic residual interest is
disregarded for all tax purposes if a significant purpose of the transfer is to enable the transferor to impede the assessment or collection of tax.  A purpose to impede the assessment or collection of tax (a wrongful purpose) exists if the transferor, at the
time of the transfer, either knew or should have known that the transferee would be unwilling or unable to pay taxes due on its share of the REMIC’s taxable income.

Under a safe harbor, the transferor of a REMIC noneconomic residual interest is presumed not to have a wrongful purpose if two requirements are satisfied: (1) the transferor conducts a reasonable
investigation of the transferee’s financial condition (the investigation requirement); and (2) the transferor secures a representation from the transferee to the effect that the transferee understands the tax obligations associated with holding a residual
interest and intends to pay those taxes (the representation requirement).

The IRS and Treasury have been concerned that some transferors of noneconomic residual interests claim they satisfy the safe harbor even in situations where the economics of the transfer clearly indicate the
transferee is unwilling or unable to pay the tax associated with holding the interest.  For this reason, on February 7, 2000, the IRS published in the Federal Register (65 FR 5807) a notice of proposed rulemaking (REG-100276-97; REG-122450-98) designed to
clarify the safe harbor by adding the ``formula test,’’ an economic test.  The proposed regulation provides that the safe harbor is unavailable unless the present value of the anticipated tax liabilities associated with holding the residual interest
does not exceed the sum of: (1) The present value of any consideration given to the transferee to acquire the interest; (2) the present value of the expected future distributions on the interest; and (3) the present value of the anticipated tax savings associated
with holding the interest as the REMIC generates losses.

The notice of proposed rulemaking also contained rules for FASITs.  Section 1.860H-6(g) of the proposed regulations provides requirements for transfers of FASIT ownership interests and adopts a safe
harbor by reference to the safe harbor provisions of the REMIC regulations.

In January 2001, the IRS published Rev. Proc. 2001-12 (2001-3 I.R.B. 335) to set forth an alternative safe harbor that taxpayers could use while the IRS and the Treasury considered comments on the proposed
regulations.  Under the alternative safe harbor, if a transferor meets the investigation requirement and the representation requirement but the transfer fails to meet the formula test, the transferor may invoke the safe harbor if the transferee meets a two-prong
test (the asset test).  A transferee generally meets the first prong of this test if, at the time of the transfer, and in each of the two years preceding the year of transfer, the transferee’s gross assets exceed $100 million and its net assets exceed $10
million.  A transferee generally meets the second prong of this test if it is a domestic, taxable corporation and agrees in writing not to transfer the interest to any person other than another domestic, taxable corporation that also satisfies the requirements
of the asset test.  A transferor cannot rely on the asset test if the transferor knows, or has reason to know, that the transferee will not comply with its written agreement to limit the restrictions on subsequent transfers of the residual interest.

Rev. Proc. 2001-12 provides that the asset test fails to be satisfied in the case of a transfer or assignment of a noneconomic residual interest to a foreign branch of an otherwise eligible transferee. 
If such a transfer or assignment were permitted, a corporate taxpayer might seek to claim that the provisions of an applicable income tax treaty would resource excess inclusion income as foreign source income, and that, as a consequence, any U.S. tax liability
attributable to the excess inclusion income could be offset by foreign tax credits.  Such a claim would impede the assessment or collection of U.S. tax on excess inclusion income, contrary to the congressional purpose of assuring that such income will be taxable
in all events.  See, e.g., sections 860E(a)(1), (b), (e) and 860G(b) of the Code.

The Treasury and the IRS have learned that certain taxpayers transferring noneconomic residual interests to foreign branches have attempted to rely on the formula test to obtain safe harbor treatment in an
effort to impede the assessment or collection of U.S. tax on excess inclusion income.  Accordingly, the final regulations provide that if a noneconomic residual interest is transferred to a foreign permanent establishment or fixed base of a U.S. taxpayer, the
transfer is not eligible for safe harbor treatment under either the asset test or the formula test.  The final regulations also require a transferee to represent that it will not cause income from the noneconomic residual interest to be attributable to a foreign
permanent establishment or fixed base.

Section 1.860E-1(c)(8) provides computational rules that a taxpayer may use to qualify for safe harbor status under the formula test.  Section 1.860E-1(c)(8)(i) provides that the transferee is presumed
to pay tax at a rate equal to the highest rate of tax specified in section 11(b).  Some commentators were concerned that this presumed rate of taxation was too high because it does not take into consideration taxpayers subject to the alternative minimum tax
rate.  In light of the comments received, this provision has been amended in the final regulations to allow certain transferees that compute their taxable income using the alternative minimum tax rate to use the alternative minimum tax rate applicable to
corporations.

Additionally, Sec. 1.860E-1(c)(8)(iii) provides that the present values in the formula test are to be computed using a discount rate equal to the applicable Federal short-term rate prescribed by section
1274(d).  This is a change from the proposed regulation and Rev. Proc. 2001-12.  In those publications the provision stated that “present values are computed using a discount rate equal to the applicable Federal rate prescribed in section 1274(d)
compounded semiannually” and that “[a] lower discount rate may be used if the transferee can demonstrate that it regularly borrows, in the course of its trade or business, substantial funds at such lower rate from an unrelated third party.” 
The IRS and the Treasury Department have learned that, based on this provision, certain taxpayers have been attempting to use unrealistically low or zero interest rates to satisfy the formula test, frustrating the intent of the test.  Furthermore, the Treasury
Department and the IRS believe that a rule allowing for a rate other than a rate based on an objective index would add unnecessary complexity to the safe harbor.  As a result, the rule in the proposed regulations that permits a transferee to use a lower discount
rate, if the transferee can demonstrate that it regularly borrows substantial funds at such lower rate, is not included in the final regulations; and the Federal short-term rate has been substituted for the applicable Federal rate.  To simplify taxpayers’
computations, the final regulations allow use of any of the published short-term rates, provided that the present values are computed with a corresponding period of compounding.  With the exception of the provisions relating to transfers to foreign branches,
these changes generally have the proposed applicability date of February 4, 2000, but taxpayers may choose to apply the interest rate formula set forth in the proposed regulation and Rev. Proc. 2001-12 for transfers occurring before August 19, 2002.

It is anticipated that when final regulations are adopted with respect to FASITs, Sec. 1.860H-6(g) of the proposed regulations will be adopted in substantially its present form, with the result that the
final regulations contained in this document will also govern transfers of FASIT ownership interests with substantially the same applicability date as is contained in this document.

Effect on Other Documents

Rev. Proc. 2001-12 (2001-3 I.R.B. 335) is obsolete for transfers of noneconomic residual interests in REMICs occurring on or after August 19, 2002.

Special Analyses

It is hereby certified that these regulations will not have a significant economic impact on a substantial number of small entities.  This certification is based on the fact that it is unlikely that a
substantial number of small entities will hold REMIC residual interests.  Therefore, a Regulatory Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required.  It has been determined that this Treasury decision is not a
significant regulatory action as defined in Executive Order 12866.  Therefore, a regulatory assessment is not required.  It also has been determined that sections 553(b) and 553(d) of the Administrative Procedure Act (5 U.S.C. chapter 5) do not apply to
these regulations.

Drafting Information

The principal author of these regulations is Courtney Shepardson.  However, other personnel from the IRS and Treasury Department participated in their development.

List of Subjects

26 CFR Part 1

Income taxes, Reporting and record keeping requirements.

26 CFR Part 602

Reporting and record keeping requirements.

Adoption of Amendments to the Regulations

Accordingly, 26 CFR parts 1 and 602 are amended as follows:

PART 1--INCOME TAXES

Paragraph 1.  The authority citation for part 1 continues to read in part as follows:

    Authority: 26 U.S.C. 7805 * * *

 

	
Exhibit K

FORM 10-D, FORM 8-K AND FORM 10-K

REPORTING RESPONSIBILITY

 

As to each item described below, the entity indicated as the Responsible Party shall be responsible for reporting the information to the Company pursuant to
Section 4.08(a)(iv).  If the Company is indicated below as to any item, then the Company is primarily responsible for obtaining that information.

Under Item 1 of Form 10-D: a) items marked “4.06 statement” are required to be included in the periodic Distribution Date statement under Section
4.03, provided by the Trustee based on information received from the Servicer; the Swap Counterparty or PMI Insurer and b) items marked “Form 10-D report” are required to be in the Form 10-D report but not the 4.06 statement, provided by the party
indicated. Information under all other Items of Form 10-D is to be included in the Form 10-D report. Items indicated as “N/A” are not applicable to the transaction.

	
Form

	
Item

	
Description

	
Responsible Party

	
10-D

	
1

	
Distribution and Pool Performance Information

	
 

	

 

	

 

	
Item 1121 – Distribution and Pool Performance Information

	
 

	

 

	

 

	
(1) Any applicable record dates, accrual dates, determination dates for calculating distributions and actual distribution dates for the distribution period.

	
4.06 statement

	

 

	

 

	
(2) Cash flows received and the sources thereof for distributions, fees and expenses.

	
4.06 statement

	

 

	

 

	
(3) Calculated amounts and distribution of the flow of funds for the period itemized by type and priority of payment, including:

	
4.06 statement

	

 

	

 

	
                (i) Fees or expenses accrued and paid, with an identification of the general purpose of such fees and the party
receiving such fees or expenses.

	
4.06 statement and the Company, as applicable

	

 

	

 

	
                (ii) Payments accrued or paid with respect to enhancement or other support identified in Item 1114 of Regulation AB
(such as insurance premiums or other enhancement maintenance fees), with an identification of the general purpose of such payments and the party receiving such payments.

	
4.06 statement and the Company, as applicable

	

 

	

 

	
                (iii) Principal, interest and other distributions accrued and paid on the asset-backed securities by type and by
class or series and any principal or interest shortfalls or carryovers.

	
4.06 statement

	

 

	

 

	
                (iv) The amount of excess cash flow or excess spread and the disposition of excess cash flow.

	
4.06 statement

	

 

	

 

	
(4) Beginning and ending principal balances of the asset-backed securities.

	
4.06 statement

	

 

	

 

	
(5) Interest rates applicable to the pool assets and the asset-backed securities, as applicable. Consider providing interest rate information for pool assets in appropriate distributional groups or
incremental ranges.

	
4.06 statement

	

 

	

 

	
(6) Beginning and ending balances of transaction accounts, such as reserve accounts, and material account activity during the period.

	
4.06 statement

	

 

	

 

	
(7) Any amounts drawn on any credit enhancement or other support identified in Item 1114 of Regulation AB, as applicable, and the amount of coverage remaining under any such enhancement, if known and
applicable.

	
4.06 statement

	

 

	

 

	
(8) Number and amount of pool assets at the beginning and ending of each period, and updated pool composition information, such as weighted average coupon, weighted average life, weighted average remaining
term, pool factors and prepayment amounts.

	
4.06 statement

 

 

	

 

	

 

	
(9) Delinquency and loss information for the period.

 

In addition, describe any material changes to the information specified in Item 1100(b)(5) of Regulation AB regarding the pool assets.

	
4.06 statement

 

 

Form 10-D report:  Company

	

 

	

 

	
(10) Information on the amount, terms and general purpose of any advances made or reimbursed during the period, including the general use of funds advanced and the general source of funds for
reimbursements.

	
4.06 statement

	

 

	

 

	
(11) Any material modifications, extensions or waivers to pool asset terms, fees, penalties or payments during the distribution period or that have cumulatively become material over time.

	
4.06 statement and the Servicer, as applicable

	

 

	

 

	
(12) Material breaches of pool asset representations or warranties or transaction covenants.

	
Company

	

 

	

 

	
(13) Information on ratio, coverage or other tests used for determining any early amortization, liquidation or other performance trigger and whether the trigger was met.

	
4.06 statement

	
 

	
 

	
(14) Information regarding any new issuance of asset-backed securities backed by the same asset pool,

	
Form 10-D report:  Company

	
 

	
 

	
information regarding any pool asset changes (other than in connection with a pool asset converting into cash in accordance with its terms), such as additions or removals in connection with a prefunding or
revolving period and pool asset substitutions and repurchases (and purchase rates, if applicable), and cash flows available for future purchases, such as the balances of any prefunding or revolving accounts, if applicable.

	
Form 10-D report:  Company

	
 

	
 

	
Disclose any material changes in the solicitation, credit-granting, underwriting, origination, acquisition or pool selection criteria or procedures, as applicable, used to originate, acquire or select the new
pool assets.

	
Form 10-D report:  Servicer

	

 

	

 

	

Item 1121(b) – Pre-Funding or Revolving Period Information

 

Updated pool information as required under Item 1121(b).

	
N/A

	

 

	
2

	
Legal Proceedings

	
 

	

 

	

 

	
Item 1117 – Legal Proceedings pending against the following entities, or their respective property, that is material to Certificateholders, including proceedings known to be contemplated by governmental
authorities:

	
 

	

 

	

 

	
Sponsor (Seller)

	
Seller

	

 

	

 

	
Company

	
Company

	

 

	

 

	
Trustee

	
Trustee

	

 

	

 

	
Issuing entity

	
Company

	

 

	

 

	
Servicer, affiliated Servicer, other Servicer servicing 20% or more of pool assets at time of report, other material servicers

	
Servicer

	

 

	

 

	
Originator of 20% or more of pool assets as of the Cut-off Date

	
Seller

	

 

	

 

	
Custodian

	
Trustee

	

 

	
3

	
Sales of Securities and Use of Proceeds

	
 

	

 

	

 

	
Information from Item 2(a) of Part II of Form 10-Q

	
Company

	

 

	

 

	

With respect to any sale of securities by

the sponsor, Company or issuing entity, that are backed by the same asset pool or are otherwise issued by the issuing entity, whether or not registered, provide the sales and use of proceeds information in
Item 701 of Regulation S-K. Pricing information can be omitted if securities were not registered.

	
 

	

 

	
4

	
Defaults Upon Senior Securities

	
 

	

 

	

 

	
Information from Item 3 of Part II of Form 10-Q

	
Trustee

	

 

	

 

	

Report the occurrence of any Event of

Default (after expiration of any grace

period and provision of any required

notice)

	
 

	

 

	
5

	
Submission of Matters to a Vote of Security Holders

	
 

	

 

	

 

	
Information from Item 4 of Part II of Form 10-Q

	
Servicer, if the Servicer is the party submitting the matter to a vote or has knowledge of the submission, Company, if the Company is the party submitting the matter to a vote or has knowledge of the
submission, and the Trustee in all other cases

	

 

	
6

	
Significant Obligors of Pool Assets

	
 

	

 

	

 

	
Item 1112(b) –
 Significant Obligor Financial Information*

	
N/A

	

 

	

 

	
*This information need only be reported on the Form 10-D for the distribution period in which updated information is required pursuant to the Item.

	
 

	

 

	
7

	
Significant Enhancement Provider Information

	
 

	

 

	

 

	
Item 1114(b)(2) – Credit Enhancement Provider Financial Information*

	
Company

	

 

	

 

	
Determining applicable disclosure threshold

	
 

	

 

	

 

	
Obtaining required financial information or effecting incorporation by reference

	
 

	

 

	

 

	
Item 1115(b) – Derivative Counterparty Financial Information*

	
Company

	

 

	

 

	
Determining current maximum probable exposure

	
 

	

 

	

 

	
Determining current significance percentage

	
 

	

 

	

 

	
Obtaining required financial information or effecting incorporation by reference

	
 

	

 

	

 

	
*This information need only be reported on the Form 10-D for the distribution period in which updated information is required pursuant to the Items.

	
 

	

 

	
8

	
Other Information

	
 

	

 

	

 

	
Disclose any information required to be reported on Form 8-K during the period covered by the Form 10-D but not reported

	
The Responsible Party for the applicable Form 8-K item as indicated below

	

 

	
9

	
Exhibits

	
 

	

 

	

 

	
Distribution report

	
Trustee

	

 

	

 

	
Exhibits required by Item 601 of Regulation S-K, such as material agreements

	
Company

	
8-K

	
1.01

	
Entry into a Material Definitive Agreement

	
 

	

 

	

 

	
Disclosure is required regarding entry into or amendment of any definitive agreement that is material to the securitization, even if Company is not a party.

 

Examples: servicing agreement, custodial agreement.

 

Note: disclosure not required as to definitive agreements that are fully disclosed in the prospectus

	
Company; or any of the following that is a party to the agreement if Servicer is not: Trustee, Purchaser, Company

 

	

 

	
1.02

	
Termination of a Material Definitive Agreement

	
 

	

 

	

 

	

Disclosure is required regarding termination of any definitive agreement that is material to the securitization (other than expiration in accordance with its
terms), even if Company is not a party.

 

Examples: servicing agreement, custodial agreement.

 

	
Company; or any of the following that is a party to the agreement if Servicer is not:  Trustee, Purchaser, Company

	

 

	
1.03

	
Bankruptcy or Receivership

	
 

	

 

	

 

	

Disclosure is required regarding the bankruptcy or receivership, if known to the Servicer, with respect to any of the following:

 

Sponsor (Seller), Company, Servicer, affiliated Servicer, other Servicer servicing 20% or more of pool assets at time of report, other material servicers, Certificate Administrator, Trustee, significant
obligor, credit enhancer (10% or more), derivatives counterparty, Custodian

	
Company

	

 

	
2.04

	
Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement

	
 

	

 

	

 

	
Includes an early amortization, performance trigger or other event, including event of default, that would materially alter the payment priority/distribution of cash flows/amortization schedule.

 

Disclosure will be made of events other than waterfall triggers which are disclosed in the 4.06 statement

	
N/A

	

 

	
3.03

	
Material Modification to Rights of Security Holders

	
 

	

 

	

 

	
Disclosure is required of any material modification to documents defining the rights of Certificateholders, including the Pooling and Servicing Agreement

	
Company

	

 

	
5.03

	
Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year

	
 

	

 

	

 

	
Disclosure is required of any amendment “to the governing documents of the issuing entity”

	
Company

	

 

	
5.06

	
Change in Shell Company Status

	
 

	

 

	

 

	
[Not applicable to ABS issuers]

	
Company

	

 

	
6.01

	
ABS Informational and Computational Material

	
 

	

 

	

 

	
[Not included in reports to be filed under Section 8.12]

	
 

	

 

	
6.02

	
Change of Servicer or Trustee

	
 

	

 

	

 

	
Requires disclosure of any removal, replacement, substitution or addition of any Servicer, affiliated servicer, other servicer servicing 10% or more of pool assets at time of report, other material
servicers, certificate administrator or trustee. Reg AB disclosure about any new servicer or trustee is also required.

	
Trustee or Servicer, as applicable

	

 

	
6.03

	
Change in Credit Enhancement or Other External Support

	
 

	

 

	

 

	
Covers termination of an enhancement in manner other than by its terms, the addition of an enhancement, or a material change in the enhancement provided. Applies to
external credit enhancements as well as derivatives. Reg AB disclosure about any new enhancement provider is also required.

	
Company

	

 

	
6.04

	
Failure to Make a Required Distribution

	
Trustee

	

 

	
6.05

	
Securities Act Updating Disclosure

	
 

	

 

	

 

	
If any material pool characteristic differs by 5% or more at the time of issuance of the securities from the description in the prospectus, provide updated Reg AB disclosure about the actual asset
pool.

	
Company

	

 

	

 

	
If there are any new servicers or originators required to be disclosed under Regulation AB as a result of the foregoing, provide the information called for in Items 1108 and 1110 respectively.

	
Company

	

 

	
7.01

	
Regulation FD Disclosure

	
Company

	

 

	
8.01

	
Other Events

	
 

	

 

	

 

	
Any event, with respect to which information is not otherwise called for in Form 8-K, that the registrant deems of importance to security holders.

	
Company

	

 

	
9.01

	
Financial Statements and Exhibits

	
The Responsible Party applicable to reportable event

	
10-K

	
9B

	
Other Information

	
 

	

 

	

 

	
Disclose any information required to be reported on Form 8-K during the fourth quarter covered by the Form 10-K but not reported

	
The Responsible Party for the applicable Form 8-K item as indicated above

	

 

	
15

	
Exhibits and Financial Statement Schedules

	
 

	

 

	

 

	
Item 1112(b) –
 Significant Obligor Financial Information

	
Company

	

 

	

 

	
Item 1114(b)(2) – Credit Enhancement Provider Financial Information

 

Determining applicable disclosure threshold

 

Obtaining required financial information or effecting incorporation by reference

	
Company

	

 

	

 

	
Item 1115(b) – Derivative Counterparty Financial Information

 

Determining current maximum probable exposure

 

Determining current significance percentage

 

Obtaining required financial information or effecting incorporation by reference

	
Company

	

 

	

 

	

Item 1117 – Legal proceedings pending against the following entities, or their respective property, that is material to Certificateholders, including
proceedings known to be contemplated by governmental authorities:

 

	
 

	

 

	

 

	
Sponsor (Seller)

	
Seller

	

 

	

 

	
Company

	
Company

	

 

	

 

	
Trustee

	
Trustee

	

 

	

 

	
Issuing entity

	
Company

	

 

	

 

	
Servicer, affiliated Servicer, other Servicer servicing 20% or more of pool assets at time of report, other material servicers

	
Servicer

	

 

	

 

	
Originator of 20% or more of pool assets as of the Cut-off Date

	
Servicer

	

 

	

 

	
Custodian

	
 

	

 

	

 

	

Item 1119 – Affiliations and relationships between the following entities, or their respective affiliates, that are material to
Certificateholders::

 

	
 

	

 

	

 

	
Sponsor (Seller)

	
Seller

	

 

	

 

	
Company

	
Company

	

 

	

 

	
Trustee

	
Trustee

	

 

	

 

	
Servicer, affiliated Servicer, other Servicer servicing 20% or more of pool assets at time of report, other material servicers

	
Servicer

	

 

	

 

	
Originator

	
Seller

	

 

	

 

	
Item 1122 – Assessment of Compliance with Servicing Criteria

	
Each Party participating in the servicing function

	

 

	

 

	
Item 1123 – Servicer Compliance Statement

	
Servicer, Servicer and Trustee

 

 

	
Exhibit L

FORM OF INVESTMENT LETTER [NON-RULE 144A]

 

[DATE]

 

LaSalle Bank National Association

135 South LaSalle Street, Suite 1625

Chicago, Illinois, 60603

Attention: Global Securitization Trust Services 

WaMu Asset Acceptance Corp.

1201 Third Avenue, WMT 1706A

Seattle, WA 98101

 

Re:          Purchase of WaMu Asset Acceptance Corp. Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1, Class [   ]  (the
“Certificates”)

Ladies and Gentlemen:

 

                In connection with our acquisition of the above Certificates, we certify that (a) we
understand that the Certificates are not being registered under the Securities Act of 1933, as amended (the “Act”), or any state securities laws and are being transferred to us in a transaction that is exempt from the registration requirements of the Act
and any such laws, (b) we are an “accredited investor,” as defined in Regulation D under the Act, and have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of investments in the
Certificates, (c) we have had the opportunity to ask questions of and receive answers from the Company concerning the purchase of the Certificates and all matters relating thereto or any additional information deemed necessary to our decision to purchase the
Certificates, (d) we are not an employee benefit plan that is subject to the Employee Retirement Income Security Act of 1974, as amended, or a plan that is subject to Section 4975 of the Internal Revenue Code of 1986, as amended, nor are we acting on behalf of any
such plan, (e) we are acquiring the Certificates for investment for our own account and not with a view to any distribution of such Certificates (but without prejudice to our right at all times to sell or otherwise dispose of the Certificates in accordance with
clause (g) below), (f) we have not offered or sold any Certificates to, or solicited offers to buy any Certificates from, any person, or otherwise approached or negotiated with any person with respect thereto, or taken any other action which would result in a
violation of Section 5 of the Act, and (g) we will not sell, transfer or otherwise dispose of any Certificates unless (1) such sale, transfer or other disposition is made pursuant to an effective registration statement under the Act or is exempt from such
registration requirements, and if requested, we will at our expense provide an opinion of counsel satisfactory to the addressees of this certificate that such sale, transfer or other disposition may be made pursuant to an exemption from the Act, (2) the purchaser or
transferee of such Certificate has executed and delivered to you a certificate to substantially the same effect as this certificate, and (3) the purchaser or transferee has otherwise complied with any conditions for transfer set forth in the Agreement.

 

Very truly yours,

[NAME OF TRANSFEREE]

By:
                                                                        

                 Authorized Officer

 

FORM OF RULE 144A INVESTMENT LETTER

 

[DATE]

 

LaSalle Bank National Association

135 South LaSalle Street, Suite 1625

Chicago, Illinois, 60603

Attention: Global Securitization Trust Services

 

WaMu Asset Acceptance Corp.

1201 Third Avenue, WMT 1706A

Seattle, WA 98101

 

Re:          Purchase of WaMu Asset Acceptance Corp. Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1, Class [   ]  (the
“Certificates”)

Ladies and Gentlemen:

 

                In connection with our acquisition of the above Certificates, we certify that (a) we
understand that the Certificates are not being registered under the Securities Act of 1933, as amended (the “Act”), or any state securities laws and are being transferred to us in a transaction that is exempt from the registration requirements of the Act
and any such laws, (b) we have had the opportunity to ask questions of and receive answers from the Company concerning the purchase of the Certificates and all matters relating thereto or any additional information deemed necessary to our decision to purchase the
Certificates, (c) we are not an employee benefit plan that is subject to the Employee Retirement Income Security Act of 1974, as amended, or a plan that is subject to Section 4975 of the Internal Revenue Code of 1986, as amended, nor are we acting on behalf of any
such plan, (d) we have not, nor has anyone acting on our behalf offered, transferred, pledged, sold or otherwise disposed of the Certificates, any interest in the Certificates or any other similar security to, or solicited any offer to buy or accept a transfer,
pledge or other disposition of the Certificates, any interest in the Certificates or any other similar security from, or otherwise approached or negotiated with respect to the Certificates, any interest in the Certificates or any other similar security with, any
person in any manner, or made any general solicitation by means of general advertising or in any other manner, or taken any other action, that would constitute a distribution of the Certificates under the Securities Act or that would render the disposition of the
Certificates a violation of Section 5 of the Securities Act or require registration pursuant thereto, nor will act, nor has authorized or will authorize any person to act, in such manner with respect to the Certificates, (e) we are a “qualified institutional
buyer” as that term is defined in Rule 144A under the Securities Act and have completed either of the forms of certification to that effect attached hereto as Annex 1 or Annex 2.  We are aware that the sale to us is being made in reliance on Rule
144A.  We are acquiring the Certificates for our own account or for resale pursuant to Rule 144A and further, understand that such Certificates may be resold, pledged or transferred only (i) to a person reasonably believed to be a qualified institutional buyer
that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A, or (ii) pursuant to another exemption from registration under the Securities
Act.

 

Very truly yours,

[NAME OF TRANSFEREE]

By:
                                                                                      

                 Authorized Officer

 

 

 

	

Annex 1 to Exhibit L

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Transferees Other Than Registered Investment Companies]

                The undersigned (the “Buyer”) hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification relates with respect to the Certificates described therein:

                1.             As indicated
below, the undersigned is the chief financial officer, a person fulfilling an equivalent function, or other executive officer of the Buyer.

                2.             In connection
with purchases by the Buyer, the Buyer is a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities Act of 1933, as amended (“Rule 144A”) because (i) the Buyer owned and/or invested on a discretionary basis at
least $100,000,000 in securities (except for the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year (such amount being calculated in accordance with Rule 144A) and (ii) the Buyer satisfies the criteria in the category
marked below.

_____      Corporation, etc.  The Buyer is a corporation (other than a bank, savings and loan association or similar
institution), Massachusetts or similar business trust, partnership, or any organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

_____      Bank.  The Buyer (a) is a national bank or a banking institution organized under the laws of any State, U.S.
territory or the District of Columbia, the business of which is substantially confined to banking and is supervised by the State or territorial banking commission or similar official or is a foreign bank or equivalent institution, and (b) has an audited net worth of
at least $25,000,000 as demonstrated in its latest annual financial statements, a copy of which is attached hereto, as of a date not more than 16 months preceding the date of sale of the Certificates in the case of a U.S. bank or a banking
institution organized under the laws of any State, U.S. territory or the District of Columbia, and not more than 18 months preceding such date of sale for a foreign bank or equivalent institution.

_____      Savings and Loan.  The Buyer (a) is a savings and loan association, building and loan association, cooperative bank,
homestead association or similar institution, which is supervised and examined by a State or Federal authority having supervision over any such institutions or is a foreign savings and loan association or equivalent institution and (b) has an audited net worth of at
least $25,000,000 as demonstrated in its latest annual financial statements, a copy of which is attached hereto, as of a date not more than 16 months preceding the date of sale of the Certificates in the case of a U.S. savings and loan
association, building and loan association, cooperative bank, homestead association or similar institution, and not more than 18 months preceding such date of sale for a foreign savings and loan association, or equivalent institution.

_____      Broker-dealer.  The Buyer is a dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as
amended.

_____      Insurance Company.  The Buyer is an insurance company whose primary and predominant business activity is the writing
of insurance or the reinsuring of risks underwritten by insurance companies and which is subject to supervision by the insurance commissioner or a similar official or agency of a State, U.S. territory or the District of Columbia.

_____      State or Local Plan.  The Buyer is a plan established and maintained by a State, its political subdivisions, or any
agency or instrumentality of the State or its political subdivisions, for the benefit of its employees.

_____      ERISA Plan.  The Buyer is an employee benefit plan within the meaning of Title I of the Employee Retirement Income
Security Act of 1974.

_____      Investment Advisor.  The Buyer is an investment advisor registered under the Investment Advisers Act of
1940.

_____      Other. (Please supply a brief description of the entity and a
cross-reference to the paragraph and subparagraph under subsection (a)(1) of Rule 144A pursuant to which it qualifies. Note that registered investment companies should complete Annex 2 rather than this Annex 1.)                                                                

                3.             The term
“securities” as used herein does not include (i) securities of issuers that are affiliated with the Buyer, (ii) if the Buyer is a dealer, securities that are part of an unsold allotment to or subscription by the Buyer as a participant in a
public offering, (iii) bank deposit notes and certificates of deposit, (iv) loan participations, (v) repurchase agreements, (vi) securities owned but subject to a repurchase agreement and (vii) currency, interest rate and commodity swaps.  For purposes of
determining the aggregate amount of securities owned and/or invested on a discretionary basis by the Buyer, the Buyer did not include any of the securities referred to in this paragraph.

                4.             For purposes of
determining the aggregate amount of securities owned and/or invested on a discretionary basis by the Buyer, the Buyer used the cost of such securities to the Buyer, except the Buyer reports its securities holdings in its financial statements on the basis of their
market value, and no current information with respect to the cost of those securities has been published, in which case, the securities were valued at market.  Further, in determining such aggregate amount, the Buyer may have included securities owned by
subsidiaries of the Buyer, but only if such subsidiaries are consolidated with the Buyer in its financial statements prepared in accordance with generally accepted accounting principles and if the investments of such subsidiaries are managed under the Buyer’s
direction.  However, such securities were not included if the Buyer is a majority-owned, consolidated subsidiary of another enterprise and the Buyer is not itself a reporting company under the Securities Exchange Act of 1934, as amended.

                5.             The Buyer
acknowledges that it is familiar with Rule 144A and understands that the seller to it and other parties related to the Certificates are relying and will continue to rely on the statements made herein because one or more sales to the Buyer may be in reliance on Rule
144A.

____       
____                        Will the Buyer be purchasing the Certificates only for the Buyer’s own account?

                                Yes          No

                6.             If the answer to the foregoing question is “no”, then in each case where the Buyer is purchasing for an account other than its own, such account belongs to a third party that is itself a “qualified institutional buyer” within the
meaning of Rule 144A, and the “qualified institutional buyer” status of such third party has been established by the Buyer through one or more of the appropriate methods contemplated by Rule 144A.

                7.             Until the date
of purchase of the Rule 144A Securities, the Buyer will notify each of the parties to which this certification is made of any changes in the information and conclusions herein. Until such notice is given, the Buyer’s purchase of the Certificates will constitute
a reaffirmation of this certification as of the date of such purchase. In addition, if the Buyer is a bank or savings and loan as provided above, the Buyer agrees that it will furnish to such parties updated annual financial statements promptly after they become
available.

                                                                                               

                Print Name of Buyer

By:
                                                                                        

Name:
                                                                                    

Title:
                                                                                     

Date:                                                                                      

 

	

Annex 2 to Exhibit L

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Transferees That are Registered Investment Companies]

 

                The undersigned (the “Buyer”) hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification relates with respect to the Certificates described therein:

                1.             As indicated
below, the undersigned is the chief financial officer, a person fulfilling an equivalent function, or other executive officer of the entity purchasing the Certificates or, if the Buyer is a “qualified institutional buyer” as that term is defined in Rule
144A under the Securities Act of 1933, as amended (“Rule 144A”) because Buyer is part of a Family of Investment Companies (as defined below), is an executive officer of the investment adviser (the “Adviser”).

                2.             In connection
with purchases by Buyer, the Buyer is a “qualified institutional buyer” as defined in SEC Rule 144A because (i) the Buyer is an investment company registered under the Investment Company Act of 1940, as amended and (ii) as marked below, the Buyer alone
owned and/or invested on a discretionary basis, or the Buyer’s Family of Investment Companies, owned at least $100,000,000 in securities (other than the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year.  For
purposes of determining the amount of securities owned by the Buyer or the Buyer’s Family of Investment Companies, the cost of such securities was used, except where the Buyer or any member of the Buyer’s Family of Investment Companies, as the case may
be, reports its securities holdings in its financial statements on the basis of their market value, and no current information with respect to the cost of those securities has been published, in which case, the securities of such entity were valued at
market.

_____      The Buyer owned and/or invested on a discretionary basis, $_________ in securities (other than the excluded securities referred to below) as of
the end of the Buyer’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).

_____      The Buyer is part of a Family of Investment Companies which owned in the aggregate $___________ in securities (other than the
excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).

               
3.             The term “Family of Investment Companies” as used herein means two or more registered investment companies (or series thereof) that have the same investment adviser or
investment advisers that are affiliated (by virtue of being majority owned subsidiaries of the same parent or because one investment adviser is a majority owned subsidiary of the other).

                4.             The term
“securities” as used herein does not include (i) securities of issuers that are affiliated with the Buyer or are part of the Buyer’s Family of Investment Companies, (ii) bank deposit notes and certificates of deposit, (iii) loan
participations, (iv) repurchase agreements, (v) securities owned but subject to a repurchase agreement and (vi) currency, interest rate and commodity swaps.  For purposes of determining the aggregate amount of securities owned and/or invested on a
discretionary basis by the Buyer, or owned by the Buyer’s Family of Investment Companies, the securities referred to in this paragraph were excluded.

                5.             The Buyer is
familiar with Rule 144A and understands that the parties listed in the Rule 144A Transferee Certificate to which this certification relates are relying and will continue to rely on the statements made herein because one or more sales to the Buyer will be in reliance
on Rule 144A.

____       
____                        Will the Buyer be purchasing the Certificates only for the Transferee’s own account?

                                Yes         
No                          

 

                6.             If the answer
to the foregoing question is “no”, then in each case where the Buyer is purchasing for an account other than its own, such account belongs to a third party that is itself a “qualified institutional buyer” within the meaning of Rule 144A, and
the “qualified institutional buyer” status of such third party has been established by the Buyer through one or more of the appropriate methods contemplated by Rule 144A.

 

               
7.             Until the date of purchase of the Certificates, the undersigned will notify the parties listed in the Rule 144A Transferee Certificate to which this certification relates of any
changes in the information and conclusions herein.  Until such notice is given, the Buyer’s purchase of the Certificates will constitute a reaffirmation of this certification by the undersigned as of the date of such purchase.

 

                                                                                               

Print Name of Buyer or Adviser

By:
                                                                                        

Name:
                                                                                    

Title:
                                                                                     

IF AN ADVISER:

                                                                                               

                Print Name of Buyer

Date:                                                                                      

 

 

	
Exhibit M

 

	
[Date]

 

[Company]

Re:       Pooling and Servicing Agreement dated as of April 1, 2006 by and among WaMu Asset Acceptance Corp., as Company, Washington Mutual Bank, as Servicer, LaSalle Bank
National Association, as Trustee, and Christiana Bank & Trust Company, as Delaware Trustee, relating to WaMu Asset Acceptance Corp. Washington Mutual Asset-Backed Certificates, WMABS Series 2006-HE1

Ladies and Gentlemen:

In accordance with Section 2.07 of the above-captioned Pooling and Servicing Agreement, the undersigned, as [Trustee] [Initial Custodian], hereby certifies that, except as noted on the attachment hereto, as
to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed on the attachment hereto) it has reviewed the documents delivered to it pursuant to Section 2.05 of the Pooling and Servicing Agreement and has determined
that (i) all documents required pursuant to the definition of “Mortgage File” and Section 2.05 of the Pooling and Servicing Agreement to have been executed and received as of the date hereof are in its possession and (ii) all such documents have been
executed and relate to the Mortgage Loans identified in the Mortgage Loan Schedule.  The [Trustee] [Initial Custodian] has made no independent examination of such documents beyond the review specifically required in the above referenced Pooling and Servicing
Agreement and has relied upon the purported genuineness and due execution of any such documents and upon the purported genuineness of any signature thereon.  The [Trustee] [Initial Custodian] makes no representations as to: (i) the validity, legality,
enforceability or genuineness of any of the documents contained in each Mortgage File or any of the Mortgage Loans identified on the Mortgage Loan Schedule, or (ii) the collectability, insurability, effectiveness or suitability of any such Mortgage Loan.

Capitalized words and phrases used herein shall have the respective meanings assigned to them in the above-captioned Pooling and Servicing Agreement.

 

	
 

	
 

	
___________________________________

	

 

	
 

	

as [Trustee] [Initial Custodian]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
______________________________

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
Title:

 

	
Exhibit N

FORM OF TRANSFEROR CERTIFICATE

 

[DATE]

 

Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1 Trust

LaSalle Bank National Association, as Trustee

135 South LaSalle Street, Suite 1625

Chicago, Illinois, 60603

Attention: Global Securitization Trust Services

 

WaMu Asset Acceptance Corp.

1201 Third Avenue, WMT 1706A

Seattle, WA 98101

Re:   Purchase of WaMu Asset Acceptance Corp. Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1, Class [   ]  (the
“Certificates”)

Ladies and Gentlemen:

                In connection with our disposition of the above Certificates, we certify that (a) we
understand that the Certificates have not been registered under the Securities Act of 1933, as amended (the “Act”), and are being disposed by us in a transaction that is exempt from the registration requirements of the Act, (b) we have not offered or sold
any Certificates to, or solicited offers to buy any Certificates from, any person, or otherwise approached or negotiated with any person with respect thereto, in a manner that would be deemed, or taken any other action which would result in, a violation of Section 5
of the Act, (c) to the extent we are disposing of the Class [__] Certificate, we have no knowledge that the Transferee is not a Permitted Transferee and (d) no purpose of the proposed disposition of the Class [__] Certificate is to impede the assessment or collection
of tax.

 

Very truly yours,

TRANSFEROR

By:
                                                                                        

 Name:
                                                                                    

 Title:
                                                                                     

 

	
Exhibit O

FORM OF ERISA REPRESENTATION

 

[DATE]

 

LaSalle Bank National Association

135 South LaSalle Street, Suite 1625

Chicago, Illinois, 60603

Attention: Global Securitization Trust Services 

WaMu Asset Acceptance Corp.

1201 Third Avenue, WMT 1706A

Seattle, WA 98101 

Washington Mutual Bank

1201 Third Avenue, WMT 1706A

Seattle, WA  98101

 

Re:    Purchase of WaMu Asset Acceptance Corp. Washington Mutual Asset-Backed Certificates WMABS Series 2006-HE1, Class [   ]  (the
“Certificates”)

Ladies and Gentlemen:

 

                ___________________ (the “Transferee”) intends to acquire from
__________________ (the “Transferor”) the above Certificates.  Capitalized terms used herein and not otherwise defined shall have the meanings assigned thereto in the Pooling and Servicing Agreement.  The Transferee hereby certifies, represents
and warrants to, and covenants with the Company, the Trustee and the Servicer:

 

(A) In the case of the Class C Certificates, the Class P Certificates and the Residual Certificates the following statements in either (1) or (2) are accurate:

 

_____ (1)        The Certificates (i) are not being acquired by, and will not be transferred to, any employee benefit plan within
the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or other retirement arrangement, including individual retirement accounts and annuities, Keogh plans and bank collective investment funds and
insurance company general or separate accounts in which such plans, accounts or arrangements are invested, that is subject to Section 406 of ERISA or Section 4975 of the Internal Revenue Code of 1986 (the “Code”) (any of the foregoing, a
“Plan”), (ii) are not being acquired with “plan assets” of a Plan within the meaning of the Department of Labor (“DOL”) regulation, 29 C.F.R. § 2510.3-101, and (iii) will not be transferred to any entity that is deemed to be
investing in plan assets within the meaning of the DOL regulation at 29 C.F.R. § 2510.3-101; or

 

_____ (2)        [With respect to the Class C Certificates and the Class P Certificates Only] The Transferee will provide
an Opinion of Counsel to the Company, the Trustee and the Servicer which establishes to the satisfaction of the Company, the Trustee and the Servicer that the purchase of such Certificates is permissible under applicable law, will not constitute or result in any
prohibited transaction under ERISA or Section 4975 of the Code and will not subject the Company, the Trustee, the Servicer, or the Trust Fund to any obligation or liability (including obligations or liabilities under ERISA or Section 4975 of the Code) in addition to
those undertaken in this Agreement.

 

(B) In the case of the Class A Certificates and the Mezzanine Certificates for so long as the Supplemental Interest Trust is in existence, either (i) such Transferee is neither a
Plan nor a Person acting on behalf of any such Plan or using the assets of any such Plan to effect such transfer or (ii) such Transferee is an accredited investor within the meaning of Prohibited Transaction Exemption 2002-41, as amended from time to time (the
“Exemption”) and  the acquisition and holding of such Certificate are eligible for the exemptive relief available under Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE, PTCE 91-38, PTCE 90-1, PTCE 95-60 or PTCE
96-23.

 

(C) In the case of the Mezzanine Certificates subsequent to the termination of the Supplemental Interest Trust, either (i) such Transferee is neither a Plan nor a Person acting on
behalf of any such Plan or using the assets of any such Plan to effect such transfer or (ii) such Transferee has acquired and is holding such Certificate in reliance on the Exemption, and the Transferee understands that there are certain conditions to the
availability of the Exemption, including that the Certificate must be rated, at the time of purchase, not lower than “BBB-” (or its equivalent) by S&P, Fitch or Moody’s, and the Certificate is so rated or (iii) (1) such Transferee  is an
insurance company, (2) the source of funds used to acquire or hold the Certificate or interest therein is an “insurance company general account,” as such term is defined in PTCE 95-60, and (3) the conditions in Sections I and III of PTCE 95-60 have been
satisfied.

 

IN WITNESS WHEREOF, the Transferee executed this certificate.

                                                                                               

[Transferee]

By:
                                                                                        

Name:
                                                                                    

Title:
                                                                                     

 

 

	
Exhibit P

FORM OF TRUSTEE CERTIFICATION

 

Re:          
Washington Mutual Asset-Backed Certificates WMABS 2006‐HE1 Trust (the “Trust”) and the Pooling and Servicing Agreement, dated as of April 1, 2006 (the “Pooling and Servicing Agreement”), among WaMu Asset Acceptance Corp., as Company (the
“Company”), Washington Mutual Bank, as servicer (the “Servicer”), Christiana Bank and Trust Company, as Delaware Trustee, and LaSalle Bank National Association, as trustee (the “Trustee”)

 

I, [identify the certifying individual], a [title] of LaSalle Bank National Association, certify to the Company and its
officers, directors and affiliates, and with the knowledge and intent that they will rely upon this certification, that:

1.             I have reviewed the annual report on Form
10-K (the “Annual Report”) for the fiscal year [___], and all reports on Form 10-D containing distribution reports filed in respect of periods included in the year covered by the Annual Report (collectively with the Annual Report, the
“Reports”), of the Trust;

2.             Based on my knowledge, the information in
the Reports prepared by the Trustee, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading
as of the last day of the period covered by the Annual Report; and

3.             Based on my knowledge, the distribution or
servicing information required to be provided to the Trustee by the Servicer under the Pooling and Servicing Agreement for inclusion in the Reports is included in the Reports.

Date:       _________________

LASALLE BANK NATIONAL ASSOCIATION

 

 

By:         
                                                                               

Name:     
                                                                               

Title:      
                                                                               

 

 

 

SCHEDULE I

 

PREPAYMENT CHARGE SCHEDULE

 

AVAILABLE UPON REQUEST

 

SCHEDULE II

 

Swap Notional Amount Schedule

 

	

Distribution Date

	

Swap Notional Amount ($)

	

1

	
0

	

2

	
363,475,035

	

3

	
344,680,490

	

4

	
338,253,611

	

5

	
331,165,487

	

6

	
323,302,449

	

7

	
314,670,707

	

8

	
305,008,266

	

9

	
293,421,251

	

10

	
278,712,677

	

11

	
266,947,893

	

12

	
252,956,612

	

13

	
239,800,113

	

14

	
227,412,634

	

15

	
215,850,823

	

16

	
205,454,278

	

17

	
203,452,621

	

18

	
202,120,033

	

19

	
193,905,467

	

20

	
183,937,850

	

21

	
166,073,223

	

22

	
146,959,906

	

23

	
130,603,709

	

24

	
116,598,798

	

25

	
104,808,261

	

26

	
95,606,373

	

27

	
88,253,998

	

28

	
82,212,305

	

29

	
77,262,140

	

30

	
72,712,509

	

31

	
68,513,631

	

32

	
64,048,704

	

33

	
59,145,968

	

34

	
54,714,922

	

35

	
50,973,404

	

36

	
47,584,496

	

37

	
44,404,037

	

38

	
41,413,835

	

39

	
38,600,128

	

40

	
35,965,297

	

41

	
33,557,784

	

42

	
31,282,502

	

43

	
29,128,018

	

44

	
27,075,252

	

45

	
25,120,085

	

46

	
23,257,967

	

47

	
21,520,551

	

48

	
19,898,441

	

49

	
18,385,496

	

50

	
16,971,171

	

51

	
15,622,449

	

52

	
14,316,546

	

53

	
13,092,567

	

54

	
11,922,882

	

55

	
10,802,846

	

56

	
9,730,254

 

SCHEDULE III

 

PMI MORTGAGE LOAN SCHEDULE

 

NOT APPLICABLE

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