Document:

EXECUTION COPY

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                      WACHOVIA BANK, NATIONAL ASSOCIATION
                                  as Servicer,

              WACHOVIA ASSET SECURITIZATION, INC. 2003-HE2 TRUST,
                                   as Issuer,

                      WACHOVIA BANK, NATIONAL ASSOCIATION,
                                as Paying Agent

                                      and

                        U.S. BANK NATIONAL ASSOCIATION,
                              as Indenture Trustee

                            ------------------------
                              SERVICING AGREEMENT

                            Dated as of July 2, 2003
                            ------------------------

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<PAGE>

                               TABLE OF CONTENTS

                                                                            Page
                                                                            ----
ARTICLE I     Definitions......................................................1

      Section 1.01    Definitions..............................................1

      Section 1.02    Other Definitional Provisions............................1

      Section 1.03    Interest Calculations....................................2

ARTICLE II    Representations and Warranties...................................2

      Section 2.01    Representations and Warranties Regarding the Servicer....2

      Section 2.02    Representations and Warranties of the Issuer.............4

      Section 2.03    Enforcement of Representations and Warranties............4

ARTICLE III   Administration and Servicing of Mortgage Loans...................5

      Section 3.01    The Servicer.............................................5

      Section 3.02    Collection of Certain Mortgage Loan Payments.............7

      Section 3.03    Custodial Duties.........................................9

      Section 3.04    Withdrawals from the Custodial Account..................10

      Section 3.05    Maintenance of Hazard Insurance; Property
                      Protection Expenses.....................................12

      Section 3.06    Modification Agreements.................................14

      Section 3.07    Trust Estate; Related Documents.........................14

      Section 3.08    Realization upon Defaulted Mortgage Loans...............15

      Section 3.09    Management and Sale of REO Property.....................16

      Section 3.10    Issuer and Indenture Trustee to Cooperate...............16

      Section 3.11    Compensation; Payment of Certain Expenses...............17

      Section 3.12    Annual Statement as to Compliance.......................17

      Section 3.13    Annual Servicing Report.................................18

      Section 3.14    Access to Certain Documentation and
                      Information Regarding the Mortgage Loans................18

      Section 3.15    Maintenance of Certain Servicing Insurance Policies.....18

      Section 3.16    Information Required by the Internal Revenue Service
                      and Reports of Foreclosures and Abandonments of
                      Mortgaged Property......................................18

      Section 3.17    Assignments; Recordings of Assignments..................19

      Section 3.18    [Reserved]..............................................19

                                      -i-

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                               TABLE OF CONTENTS
                                  (Continued)
                                                                            Page
                                                                            ----

      Section 3.19    Funding Accounts........................................19

      Section 3.20    [Reserved]..............................................21

      Section 3.21    P&I Advances............................................21

      Section 3.22    Transfer of Mortgage Loans..............................21

      Section 3.23    Notice of Rating Change.................................22

      Section 3.24    Calculation of LIBOR, Note Rate, Net WAC Rate and
                      Maximum Auction Rate....................................23

ARTICLE IV    Servicing Certificate...........................................23

      Section 4.01    Statements to Securityholders...........................23

      Section 4.02    Tax Returns and 1934 Act Reports........................26

ARTICLE V     Note Payment Account............................................26

      Section 5.01    Note Payment Account....................................26

ARTICLE VI    The Servicer....................................................27

      Section 6.01    Liability of the Servicer...............................27

      Section 6.02    Merger or Consolidation of, or Assumption of the
                      Obligations of, the Servicer............................27

      Section 6.03    Limitation on Liability of the Servicer and Others......27

      Section 6.04    Servicer Not to Resign..................................28

      Section 6.05    Delegation of Duties....................................29

      Section 6.06    Payment of Indenture Trustee's, the Paying Agent's
                      and Owner Trustee's Fees and Expenses; Indemnification..29

ARTICLE VII   Default.........................................................31

      Section 7.01    Servicing Default.......................................31

      Section 7.02    Indenture Trustee to Act; Appointment of Successor......33

      Section 7.03    Notification to Securityholders.........................34

ARTICLE VIII  Miscellaneous Provisions........................................35

      Section 8.01    Amendment...............................................35

      Section 8.02    Exhibits................................................35

      Section 8.03    GOVERNING LAW...........................................35

      Section 8.04    Notices.................................................35

                                      -ii-

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                               TABLE OF CONTENTS
                                (Continued)
                                                                            Page
                                                                            ----

      Section 8.05    Severability of Provisions..............................36

      Section 8.06    Protection of Confidential Information..................36

      Section 8.07    Third-Party Beneficiaries...............................36

      Section 8.08    Counterparts............................................36

      Section 8.09    Effect of Headings and Table of Contents................36

      Section 8.10    Termination upon Purchase by the Servicer or
                      Liquidation of All Mortgage Loans; Partial Redemption...36

      Section 8.11    Certain Matters Affecting the Indenture Trustee
                      and the Paying Agent....................................37

      Section 8.12    Owner Trustee, Paying Agent and Indenture Trustee
                      Not Liable for Related Documents........................37

EXHIBITS

EXHIBIT A - MORTGAGE LOAN SCHEDULE...........................................A-1

EXHIBIT B - COLLECTION POLICY............................................... B-1

EXHIBIT C - LIMITED POWER OF ATTORNEY........................................C-1

EXHIBIT D - FORM OF REQUEST FOR RELEASE......................................D-1

                                     -iii-

<PAGE>

     This Servicing  Agreement,  dated as of July 2, 2003 (the "Agreement"),  is
among Wachovia Bank,  National  Association,  as servicer (the "Servicer"),  the
Wachovia Asset  Securitization,  Inc.  2003-HE2 Trust, as issuer (the "Issuer"),
Wachovia Bank, National  Association,  as Paying Agent (the "Paying Agent"), and
U.S. Bank National Association, as indenture trustee (the "Indenture Trustee").

                                   WITNESSETH:

     WHEREAS,  pursuant  to the  terms of the  Purchase  Agreement  (as  defined
herein),  Wachovia  Bank,  National  Association,  as seller (in such  capacity,
"Seller") and as servicer, will sell to Wachovia Asset Securitization,  Inc., as
purchaser (in such capacity, the "Purchaser"), the Initial Mortgage Loans on the
Closing Date, and may sell  Subsequent  Mortgage Loans on one or more Subsequent
Transfer Dates,  together with the Related Documents on the Closing Date and any
Subsequent  Transfer Date, and thereafter all Additional  Balances created on or
after the Cut-Off Date and any such Subsequent Transfer Date;

     WHEREAS,  Wachovia  Asset  Securitization,  Inc.,  as  depositor  (in  such
capacity, the "Depositor"),  will sell the Initial Mortgage Loans and assign all
of its rights under the  Purchase  Agreement  to the Issuer,  together  with the
Related Documents on the Closing Date, and thereafter  Subsequent Mortgage Loans
and Additional  Balances  relating to the Mortgage Loans created on or after the
Cut-Off Date;

     WHEREAS,  pursuant  to the terms of the Trust  Agreement,  the Issuer  will
issue the Certificates;

     WHEREAS,  pursuant to the terms of the Indenture, the Issuer will issue the
Notes; and

     WHEREAS, pursuant to the terms of this Agreement, the Servicer will service
the Mortgage Loans directly or through one or more Subservicers.

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

                                   ARTICLE I

                                  Definitions

     Section 1.01  Definitions.  For all purposes of this  Agreement,  except as
otherwise  expressly  provided herein or unless the context otherwise  requires,
capitalized  terms not otherwise defined herein shall have the meanings assigned
to such terms in the Definitions  contained in Appendix A to the indenture dated
as of July 2, 2003 (the "Indenture"), among the Issuer, the Paying Agent and the
Indenture  Trustee,  which  is  incorporated  by  reference  herein.  All  other
capitalized terms used herein shall have the meanings specified herein.

                                       1

<PAGE>

     Section 1.02 Other Definitional Provisions.

     (a) All terms  defined in this  Agreement  shall have the defined  meanings
when used in any certificate or other document made or delivered pursuant hereto
unless otherwise defined therein.

     (b) As used in this Agreement and in any certificate or other document made
or delivered  pursuant hereto or thereto,  accounting  terms not defined in this
Agreement or in any such  certificate or other  document,  and accounting  terms
partly defined in this Agreement or in any such  certificate or other  document,
to the extent not  defined,  shall have the  respective  meanings  given to them
under  generally  accepted  accounting  principles.   To  the  extent  that  the
definitions of accounting  terms in this Agreement or in any such certificate or
other document are inconsistent  with the meanings of such terms under generally
accepted accounting  principles,  the definitions contained in this Agreement or
in any such certificate or other document shall control.

     (c) The words "hereof,"  "herein,"  "hereunder" and words of similar import
when used in this Agreement  shall refer to this Agreement as a whole and not to
any  particular  provision of this  Agreement;  Section and  Exhibit  references
contained in this  Agreement  are  references  to Sections and Exhibits in or to
this Agreement  unless  otherwise  specified;  the term  "including"  shall mean
"including  without  limitation";  "or"  shall  include  "and/or";  and the term
"proceeds" shall have the meaning ascribed thereto in the UCC.

     (d) The  definitions  contained in this  Agreement  are  applicable  to the
singular as well as the plural forms of such terms and to the  masculine as well
as the feminine and neuter genders of such terms.

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

     Section 1.03 Interest Calculations.  All calculations of interest hereunder
that are made in respect of the  Principal  Balance of a Mortgage  Loan shall be
made on a daily basis using a 365-day year. All  calculations of interest on the
Notes  shall be made on the basis of the  actual  number of days in an  Interest
Period  and a year  assumed  to  consist of  360-days.  The  calculation  of the
Servicing Fee shall be made on the basis of a 360-day year  consisting of twelve
30-day months. All dollar amounts  calculated  hereunder shall be rounded to the
nearest penny with one-half of one penny being rounded up.

                                   ARTICLE II

                         Representations and Warranties

     Section 2.01  Representations  and Warranties  Regarding the Servicer.  The
Servicer represents and warrants to the Issuer, the Enhancer and for the benefit
of the Indenture  Trustee,  as pledgee of the Mortgage  Loans, as of the Closing
Date:

                                       2

<PAGE>

     (a) The  Servicer is a national  banking  association  duly  organized  and
validly  existing  under the laws of the United States of America and is or will
be in compliance with the laws of each state in which any Mortgaged  Property is
located to the extent  necessary to ensure the  enforceability  of each Mortgage
Loan;

     (b) The Servicer has the power and authority to make, execute,  deliver and
perform  its  obligations  under  this  Agreement  and  all of the  transactions
contemplated under this Agreement,  has taken all necessary  corporate action to
authorize the execution,  delivery and  performance of this  Agreement,  and has
duly executed and delivered this Agreement;

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

     (d) The  execution  and delivery of this  Agreement by the Servicer and the
performance and compliance with the terms of this Agreement by the Servicer will
not violate the Articles of Association or Bylaws of the Servicer, or constitute
a material  default (or an event which,  with notice or lapse of time,  or both,
would constitute a material default) under, or result in the material breach of,
any material contract,  agreement or other instrument to which the Servicer is a
party  or which  may be  applicable  to the  Servicer  or any of its  respective
assets;

     (e) No litigation is currently pending, or to the knowledge of the Servicer
threatened,  against the  Servicer,  that in the opinion of the  Servicer  has a
reasonable  likelihood  of  resulting  in  a  material  adverse  effect  on  the
transactions contemplated by this Agreement;

     (f) This Agreement constitutes a legal, valid and binding obligation of the
Servicer,  enforceable against the Servicer in accordance with its terms, except
as  enforceability  may  be  limited  by  applicable   bankruptcy,   insolvency,
reorganization,   moratorium  and  other  laws  affecting  the   enforcement  of
creditors'  rights in  general,  as they may be  applied  in the  context of the
insolvency of a national banking  association,  and by general equity principles
(regardless of whether such  enforcement is considered in a proceeding in equity
or at law), and by public policy considerations  underlying the securities laws,
to the extent that such public policy considerations limit the enforceability of
the provisions of this Agreement which purport to provide  indemnification  from
liabilities under applicable securities laws; and

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

     The foregoing  representations and warranties shall survive any termination
of the Servicer hereunder.

                                       3

<PAGE>

     Section  2.02  Representations  and  Warranties  of the Issuer.  The Issuer
hereby  represents  and  warrants  to the  Servicer  and for the  benefit of the
Indenture Trustee, as pledgee of the Mortgage Loans, as of the Closing Date:

     (a) the Issuer is a statutory  trust duly formed and in good standing under
the laws of the State of Delaware and has full power,  authority and legal right
to execute and deliver this Agreement and to perform its obligations  under this
Agreement,  and has  taken all  necessary  action to  authorize  the  execution,
delivery and performance by it of this Agreement; and

     (b) the  execution  and  delivery by the Issuer of this  Agreement  and the
performance  by the  Issuer of its  obligations  under this  Agreement  will not
violate  any  provision  of any law or  regulation  governing  the Issuer or any
order,  writ,  judgment  or  decree of any  court,  arbitrator  or  governmental
authority  or  agency  applicable  to the  Issuer  or any  of its  assets.  Such
execution,  delivery,  authentication  and  performance  will  not  require  the
authorization,  consent or  approval  of, the giving of notice to, the filing or
registration  with,  or the  taking of any other  action  with  respect  to, any
governmental  authority or agency regulating the activities of limited liability
companies.  Such execution,  delivery,  authentication  and performance will not
conflict  with,  or result in a breach or violation  of, any  mortgage,  deed of
trust, lease or other agreement or instrument to which the Issuer is bound.

     Section 2.03 Enforcement of Representations  and Warranties.  The Servicer,
on behalf of and subject to the direction of the Indenture  Trustee,  as pledgee
of the Mortgage  Loans,  or the Issuer,  shall enforce the  representations  and
warranties of the Seller pursuant to the Purchase Agreement.  Upon the discovery
by the Seller, the Depositor,  the Servicer, the Indenture Trustee, the Enhancer
or the Issuer of a breach of any of the  representations  and warranties made by
the Seller in the  Purchase  Agreement,  in respect of any  Mortgage  Loan which
materially  and adversely  affects the interests of the  Securityholders  or the
Enhancer,  the party discovering such breach shall give prompt written notice to
the other parties.  The Servicer shall promptly notify the Seller of such breach
and request that,  pursuant to the terms of the Purchase  Agreement,  the Seller
either (i) cure such  breach in all  material  respects  within 90 days from the
date the Seller was notified of such breach or (ii)  purchase such Mortgage Loan
from the Issuer at the price and in the manner  set forth in  Section 3.1(d)  of
the Purchase Agreement; provided, however, that the Seller shall, subject to the
conditions set forth in the Purchase Agreement, have the option to substitute an
Eligible  Substitute Loan or Loans for such Mortgage Loan. In the event that the
Seller elects to substitute  one or more Eligible  Substitute  Loans pursuant to
Section 3.1(d)  of the  Purchase  Agreement,  the  Seller  shall  deliver to the
Servicer,  in  accordance  with the  Purchase  Agreement,  with  respect to such
Eligible Substitute Loans, the original Loan Agreement,  the Mortgage,  and such
other  documents  and  agreements  as are  required by the  Purchase  Agreement.
Payments  due  with  respect  to  Eligible  Substitute  Loans  in the  month  of
substitution  shall not be transferred to the Issuer and will be retained by the
Servicer  and  remitted  by the  Servicer  to the Seller on the next  succeeding
Payment  Date  except  to the  extent  that a payment  less than the  applicable
Minimum  Monthly  Payment  has been  received  by the  Issuer  for such month in
respect of the Mortgage Loan to be removed. The Servicer shall amend or cause to
be amended the Mortgage  Loan  Schedule to reflect the removal of such  Mortgage
Loan and the  substitution  of the  Eligible  Substitute  Loans and the Servicer
shall promptly  deliver the amended  Mortgage Loan Schedule to the Owner Trustee
and Indenture Trustee.

                                       4

<PAGE>

     It is understood  and agreed that the obligation of the Seller to cure such
breach or  purchase  or  substitute  for such  Mortgage  Loan as to which such a
breach  has  occurred  and  is  continuing  shall  constitute  the  sole  remedy
respecting  such breach  available to the Issuer and the Indenture  Trustee,  as
pledgee of the  Mortgage  Loans,  against the  Seller.  In  connection  with the
purchase of or substitution for any such Mortgage Loan by the Seller, the Issuer
shall  assign to the Seller all of its right,  title and  interest in respect of
the Purchase Agreement applicable to such Mortgage Loan.

                                  ARTICLE III

                 Administration and Servicing of Mortgage Loans

     Section 3.01 The Servicer.

     (a) The Issuer,  by execution and delivery of this  Agreement,  does hereby
appoint  the  Servicer  for,  and  subject to the terms of this  Agreement,  the
Servicer assumes  responsibility  for, the servicing of the Mortgage Loans. Each
original  Mortgage File and any Related  Documents  delivered to the Servicer by
the Seller  pursuant to the  provisions  of this  Agreement  and any  Subsequent
Transfer Agreement shall be held in trust by the Servicer for the benefit of the
Trust in accordance with the terms of this Agreement.  The Servicer's possession
of any portion of any original  Mortgage File,  any Related  Documents or copies
thereof shall be maintained in accordance  with the provisions of this Agreement
to  facilitate  the  servicing of the related  Mortgage  Loans  pursuant to this
Agreement.

     (b) The Servicer  shall  service and  administer  the  Mortgage  Loans in a
manner generally  consistent with the terms of this Agreement and the collection
policy set forth on Exhibit B (the  "Collection  Policy")  and in a manner  that
shall be normal and usual in its mortgage servicing  activities.  Subject to the
Collection Policy and the terms of this Agreement  (including without limitation
Sections 3.08 and 3.09),  the Servicer shall have full power and authority to do
any and all things in connection with such servicing and administration which it
may deem necessary or desirable, it being understood, however, that the Servicer
shall at all times remain  responsible  to the Issuer,  the Paying Agent and the
Indenture Trustee for the performance of its duties and obligations hereunder.

     The Servicer will at all times apply the same standards and follow the same
procedures  with  respect  to  the  decision  to  commence  litigation,  and  in
prosecuting  and litigating with respect to the Mortgage Loans as it applies and
follows with respect to mortgage loans like the Mortgage Loans generally.

     (c) The Servicer shall enforce the  respective  rights and interests of the
Issuer and the Indenture Trustee in and under each Mortgage Loan,  including the
Mortgaged  Property  and any other  related  security.  The  Servicer  is hereby
authorized and empowered,  in performing  its duties  hereunder,  subject to the
limitations set forth herein, to execute and deliver,  on behalf of itself,  the
Issuer,  the  Indenture  Trustee  or any of  them,  any and all  instruments  of
satisfaction or cancellation, or of partial or full release or discharge and all
other  comparable  instruments  with  respect  to the  Mortgage  Loans  and  the
Mortgaged Properties. The Issuer and the Indenture Trustee, as applicable, shall
execute any powers of attorney and other documents furnished

                                       5

<PAGE>

to them by the Servicer and necessary or  appropriate  to enable the Servicer to
carry out its servicing and administrative  duties hereunder.  In addition,  the
Servicer may, at its own discretion,  obtain credit information in the form of a
"credit  score" from a credit  repository.  On the Closing  Date,  the Indenture
Trustee shall deliver to the Servicer a limited power of attorney  substantially
in the form of Exhibit C hereto.

     No costs incurred by the Servicer in respect of Servicing  Advances  shall,
for the purposes of  distributions  to the  Noteholders,  be added to the amount
owing under the related Mortgage Loan.

     Notwithstanding anything to the contrary contained herein, the Servicer, in
servicing  and  administering  the Mortgage  Loans,  shall employ or cause to be
employed procedures (including collection, foreclosure and management procedures
with respect to REO  Property)  and  exercise the same care that it  customarily
employs and exercises in servicing and administering  mortgage loans for its own
account,  in accordance with accepted  mortgage  servicing  practices of prudent
lending institutions  servicing mortgage loans similar to the Mortgage Loans and
giving due  consideration  to the  Noteholders'  and the Trust's reliance on the
Servicer.

     If the Mortgage did not have a Lien senior to the related  Mortgage Loan on
the related  Mortgaged  Property as of the  Cut-Off  Date or related  Subsequent
Cut-Off  Date,  as  applicable,  then the Servicer,  in such  capacity,  may not
consent to the placing of a Lien  senior to that of the  Mortgage on the related
Mortgaged  Property.  If the Mortgage had a Lien senior to the related  Mortgage
Loan on the  related  Mortgaged  Property  as of the  Cut-Off  Date  or  related
Subsequent Cut-Off Date, as applicable, then the Servicer, in such capacity, may
consent to the  refinancing  of such prior  senior Lien,  provided  that (i) the
resulting  CLTV of such  Mortgage Loan is no higher than the greater of the CLTV
prior  to such  refinancing  or  100%;  (ii)  the  interest  rate  for the  loan
evidencing the refinanced senior Lien is no higher than the interest rate on the
loan evidencing the existing senior Lien  immediately  prior to the date of such
refinancing  (meaning,  in the case of an adjustable  rate loan, a substantially
similar  index and a gross  margin no higher  than that of the  existing  senior
Lien);  and (iii) the loan evidencing the refinanced  senior Lien is not subject
to negative amortization.

     In  connection  with  servicing the Mortgage  Loans,  the Servicer may take
reasonable  actions to encourage or effect the  termination  of Loan  Agreements
that have become dormant.

     The  relationship  of the Servicer (and of any successor to the Servicer as
servicer under this Agreement) to the Issuer, the Paying Agent and the Indenture
Trustee  under  this  Agreement  is  intended  by the  parties  to be that of an
independent contractor and not that of a joint venturer, partner or agent.

     (d) The Servicer may enter into  Subservicing  Agreements with Subservicers
for the servicing and administration of certain of the Mortgage Loans,  provided
that notwithstanding such appointment,  the Servicer shall remain liable for the
performance of all servicing  duties delegated by it. The Servicer shall provide
written notice to the Indenture Trustee,  the Paying Agent and the Enhancer upon
entering into a Subservicing Agreement.  References in this Agreement to actions
taken or to be taken by the Servicer in servicing  the  Mortgage  Loans  include
actions taken or to be taken by a Subservicer  on behalf of the Servicer and any
amount

                                       6

<PAGE>

actually  received by such  Subservicer  in respect of a Mortgage  Loan shall be
deemed to have been received by the Servicer whether or not actually received by
the Servicer. Each Subservicing Agreement will be upon such terms and conditions
as are  not  inconsistent  with  this  Agreement  and as the  Servicer  and  the
Subservicer  have agreed.  With the approval of the Servicer,  a Subservicer may
delegate  its  servicing   obligations  to  third-party   servicers,   but  such
Subservicers  will remain obligated under the related  Subservicing  Agreements.
The  Servicer  and the  Subservicer  may enter into  amendments  to the  related
Subservicing Agreements;  provided,  however, that any such amendments shall not
cause the  Mortgage  Loans to be serviced  in a manner that would be  materially
inconsistent with the standards set forth in this Agreement.  The Servicer shall
be entitled to terminate any Subservicing Agreement in accordance with the terms
and conditions  thereof and without any limitation by virtue of this  Agreement;
provided,  however,  that  in the  event  of  termination  of  any  Subservicing
Agreement by the Servicer or the  Subservicer,  the Servicer shall either act as
servicer of the related  Mortgage  Loan or enter into a  Subservicing  Agreement
with a  successor  Subservicer  which will be bound by the terms of the  related
Subservicing  Agreement.  The  Servicer  shall be  entitled  to  enter  into any
agreement  with a Subservicer  for  indemnification  of the Servicer and nothing
contained  in  this   Agreement   shall  be  deemed  to  limit  or  modify  such
indemnification.

     In the event that the rights,  duties and  obligations  of the Servicer are
terminated hereunder,  any successor to the Servicer in its sole discretion may,
to the extent permitted by applicable law,  terminate the existing  Subservicing
Agreement with any  Subservicer  in accordance  with the terms of the applicable
Subservicing   Agreement  or  assume  the  terminated   Servicer's   rights  and
obligations under such subservicing arrangements which termination or assumption
will not violate the terms of such arrangements.

     As  part of its  servicing  activities  hereunder,  the  Servicer,  for the
benefit  of the  Indenture  Trustee,  the Paying  Agent,  the  Enhancer  and the
Securityholders, shall use reasonable efforts to enforce the obligations of each
Subservicer  under the related  Subservicing  Agreement,  to the extent that the
non-performance of any such obligation would have a material adverse effect on a
Mortgage  Loan.  Such  enforcement,  including,  without  limitation,  the legal
prosecution of claims, termination of Subservicing 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 Loan or (ii) from a specific  recovery of costs,
expenses or attorneys  fees against the party against whom such  enforcement  is
directed.

     Section 3.02 Collection of Certain Mortgage Loan Payments.

     (a) 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 generally
consistent  with the Collection  Policy,  follow such  collection  procedures as
shall be normal  and usual in its  general  mortgage  servicing  activities  and
consistent  with the  procedures  the Servicer  employs in  servicing  all other
Mortgage Loans in the servicing portfolio with characteristics  similar to those
of the Mortgage Loans. Consistent

                                       7

<PAGE>

with the foregoing,  and without  limiting the generality of the foregoing,  the
Servicer  may in its  discretion  (i) waive  any late  payment  charge,  penalty
interest  or other  fees  which  may be  collected  in the  ordinary  course  of
servicing a Mortgage  Loan and (ii)  arrange with a Mortgagor a schedule for the
payment of principal and interest due and unpaid;  provided,  however, that such
arrangement  is  consistent  with the  Servicer's  policies with respect to home
equity mortgage loans. The Servicer may also extend the Due Date for payment due
on a Mortgage Loan in accordance with the Collection Policy; provided,  however,
that the Servicer  shall first  determine that any such waiver or extension will
not impair the coverage of any related insurance policy or materially  adversely
affect the Lien of the related Mortgage or the interests of the  Securityholders
or the Enhancer,  and the Servicer  shall not grant any such waiver or extension
that would have any such effect.  Consistent  with the terms of this  Agreement,
the Servicer may also:

          (i) waive,  modify or vary any term of any  Mortgage  Loan  (including
reduce the Credit Limit);

          (ii) consent to the  postponement  of strict  compliance with any such
term or in any manner grant indulgence to any Mortgagor;

          (iii) arrange with a Mortgagor a schedule for the payment of principal
and interest due and unpaid;

          (iv) forgive any portion of the amounts  contractually  owed under the
Mortgage Loan;

          (v) capitalize past due amounts owed under the Mortgage Loan by adding
any amounts in arrearage to the existing  principal balance of the Mortgage Loan
(a  "Capitalization  Workout") which will result in an increased monthly payment
amount, provided that: (A) the amount added to the existing principal balance of
the Mortgage Loan (the "Capitalized Amount") shall be no greater than five times
the Mortgagor's  current  Minimum  Monthly Payment amount;  and (B) the Servicer
shall not enter into a  Capitalization  Workout  unless the CLTV of the Mortgage
Loan prior to the Capitalization Workout equals or exceeds 80% and the Mortgagor
has qualified for the  Capitalization  Workout  under the  Servicer's  servicing
guidelines; or

          (vi) reset the maturity  date for the Mortgage  Loan,  but in no event
shall such reset date extend beyond the end of the Collection  Period  preceding
the Final Payment Date;

or any  combination of the foregoing,  if in the Servicer's  determination  such
waiver,  modification,  postponement or indulgence is not materially  adverse to
the interests of the Securityholders or the Enhancer;  provided,  however,  that
the  Servicer  may not,  pursuant  to this  Section  3.02,  modify or permit any
Subservicer  to modify any  Mortgage  Loan  (including  without  limitation  any
modification  that  would  change  the Loan  Rate,  forgive  the  payment of any
principal or interest  (unless in connection with the liquidation of the related
Mortgage  Loan) or extend the final  maturity date of such Mortgage Loan) unless
such  Mortgage  Loan is in default  or, in the  judgment of the  Servicer,  such
default is  reasonably  foreseeable  or except as provided in Section  3.06.  In
connection with any such waiver, modification, postponement or indulgence,

                                       8

<PAGE>

the Servicer shall use  reasonable  efforts to maximize the receipt of principal
and  interest   thereon.   The  general  terms  of  any  waiver,   modification,
forgiveness,  postponement  or  indulgence  with  respect to any of the Mortgage
Loans will be included in the Servicing  Certificate,  and such  Mortgage  Loans
will not be considered  "delinquent"  for the purposes of the Basic Documents so
long as the  Mortgagor  complies  with the terms of such  waiver,  modification,
forgiveness, postponement or indulgence.

     Section 3.03 Custodial Duties.

     (a) The Servicer is hereby  appointed as custodian of the documents in each
Mortgage File.

     (b) The Servicer shall establish the Custodial  Account,  which shall be an
Eligible  Account,  titled "Wachovia Asset  Securitization,  Inc. 2003-HE2 Trust
Custodial  Account," in which the Servicer or the Issuer,  as applicable,  shall
deposit  or  cause  to  be  deposited  any  amounts  representing  payments  and
collections  in respect of the Mortgage  Loans  received by it subsequent to the
applicable Cut-Off Date or Subsequent Cut-Off Date (other than in respect of the
payments  referred  to in the  following  paragraph),  within one  Business  Day
following  receipt  thereof  (or  otherwise  on or prior to the  Closing  Date),
including the following payments and collections received or made by it (without
duplication):

          (i) all payments of  principal  of or interest on the  Mortgage  Loans
(other than amounts in respect of the Excluded  Amount)  received or advanced by
the  Servicer,  net of any  portion  of the  interest  thereof  retained  by any
Subservicer as subservicing fees;

          (ii) Net Liquidation  Proceeds,  net of any related Foreclosure Profit
and all Subsequent Net Recovery Amounts;

          (iii) all proceeds of any  Mortgage  Loans  repurchased  by the Seller
pursuant to the Purchase Agreement, including any indemnity payments paid by the
Seller  pursuant  to  Section  3.1(d)  of  the  Purchase   Agreement,   and  all
Substitution  Adjustment Amounts required to be deposited in connection with the
substitution of an Eligible Substitute Loan pursuant to the Purchase Agreement;

          (iv)  Insurance  Proceeds,   other  than  Net  Liquidation   Proceeds,
resulting from any insurance policy maintained on a Mortgaged Property;

          (v) REO proceeds and Condemnation Proceeds; and

          (vi)  amounts  required  to  be  paid  by  the  Servicer  pursuant  to
Section 6.06;

provided,  however,  that with respect to each Collection  Period,  the Servicer
shall be  permitted  to retain  from  payments  in  respect of  interest  on the
Mortgage  Loans,  the Servicing Fee for such  Collection  Period.  The foregoing
requirements  respecting  deposits to the Custodial  Account are  exclusive,  it
being  understood that,  without  limiting the generality of the foregoing,  the
Servicer  need  not  deposit  in  the  Custodial  Account  amounts  representing
Foreclosure  Profits,  fees  (including  annual fees) or late charge  penalties,
payable by  Mortgagors  (such  amounts to be  retained as  additional  servicing
compensation in accordance with Section 3.10 hereof), or

                                       9

<PAGE>

amounts  received by the Servicer for the accounts of Mortgagors for application
towards the payment of taxes, insurance premiums, assessments and similar items.
In the event any amount not required to be deposited in the Custodial Account is
so  deposited,  the  Servicer  may at any time  withdraw  such  amount  from the
Custodial Account, any provision herein to the contrary notwithstanding, and pay
such amount to the Person entitled to such amount. The Servicer shall retain all
Foreclosure  Profits  as  additional   servicing   compensation.   Payments  and
collections  allocable to an Excluded  Amount  shall not be  deposited  into the
Custodial  Account,  the Distribution  Account or the Note Payment Account,  but
shall be distributed by the Servicer to the Seller pursuant to Section 3.04.

     If the  Servicer  makes  any P&I  Advances  pursuant  to  Section 3.21  the
Servicer  shall be  entitled to  reimbursement  itself by  withdrawing  from the
Custodial Account, as provided herein, any amounts so advanced. The Servicer may
cause the institution  maintaining the Custodial  Account to invest any funds in
the Custodial Account in Permitted  Investments,  which investments shall mature
not later than the Business Day preceding the next succeeding  Payment Date, and
which  investments  shall  not be sold or  disposed  of  prior to  maturity.  In
addition,  no such Permitted  Investment shall be purchased at a price in excess
of par.  Except as provided  above,  all income and gain  realized from any such
investment  shall inure to the benefit of the  Servicer  and shall be subject to
its withdrawal or order from time to time. The amount of any losses  incurred in
respect of the principal  amount of any such  investments  shall be deposited in
the  Custodial  Account  by the  Servicer  out of its own funds  immediately  as
realized.

     (c) The Servicer shall promptly report in writing to the Owner Trustee, the
Paying Agent and the Indenture  Trustee any material  failure on the  Servicer's
part to hold the Mortgage Files and maintain its records and computer systems as
herein provided and promptly take appropriate action to remedy any such failure.
Following   the   occurrence   of  a   Servicing   Default   as  set   forth  in
Section 7.01(a)(iii)  or  (iv),  the  Issuer  or  the  Indenture  Trustee  shall
immediately  terminate  the  rights of the  Servicer  to  perform  the duties as
custodian with respect to the Mortgage Files for the Mortgage  Loans.  Following
the  occurrence  of a Servicing  Default as set forth in  Section 7.01(a)(i)  or
(ii),  the Issuer or the  Indenture  Trustee  shall,  upon 60 days prior written
notice,  terminate the rights of the Servicer to perform the duties as custodian
with respect to the Mortgage Files for the Mortgage Loans.  Upon the termination
of the Servicer's  rights to perform the duties as custodian with respect to any
Mortgage  Files,  the  Servicer  shall  deliver each such  Mortgage  File to the
Indenture  Trustee or its designee in accordance  with the  instructions  of the
Indenture Trustee.

     (d) Upon taking  possession of the Mortgage  Files,  the Servicer shall (i)
maintain  possession of the Mortgage  Files and (ii) exercise the same degree of
care with respect to the  possession  of the Mortgage  Files as it would if they
were its own  property.  The  Mortgage  Files  shall at all times be held by the
Servicer  segregated  from any similar  documents.  In performing  its duties as
custodian,  the Servicer shall act with  reasonable  care,  using that degree of
skill and attention that other servicers exercise with respect to the loan files
relating to all comparable loans that they service. Mortgage Files shall be held
for the benefit of the Indenture Trustee and the Securityholders.

     Section 3.04  Withdrawals from the Custodial  Account.  The Servicer shall,
from  time to time as  provided  herein,  make  withdrawals  from the  Custodial
Account of amounts on deposit

                                       10

<PAGE>

therein pursuant to Section 3.02 that are attributable to the Mortgage Loans for
the following purposes:

     (a) on each  Determination  Date, the Servicer shall determine the pro rata
portion of the Interest  Collections  from the related Loan Group deposited into
the Custodial Account with respect to the related  Collection Period that relate
to the Additional  Balance  Increase Amount and, prior to 1:00 p.m. (EST) on the
Business Day prior to the related Payment Date, the Servicer shall withdraw such
amounts  from  the   Custodial   Account  and  deposit  such  amounts  into  the
Distribution  Account for  distribution  to the  Certificateholders  pursuant to
Section 5.01 of the Trust Agreement;

     (b) on each Determination  Date, the Servicer shall determine the aggregate
amounts to be  withdrawn  from the  Custodial  Account and  applied  pursuant to
Section 3.05(a)  of the Indenture  and, prior to 1:00 p.m. (EST) on the Business
Day prior to the related  Payment Date, the Servicer shall withdraw such amounts
from the  Custodial  Account  and deposit  such  amounts  into the Note  Payment
Account,  the applicable  Funding Account or the Distribution  Account,  in each
case in  accordance  with  Section  3.05 of the  Indenture  and in the  order of
priority set forth in Section 3.05(a) of the Indenture for such Payment Date and
in accordance with the Servicing Certificate;

     (c) to pay to the Seller any monthly payments received from the Mortgagors,
the amount of such  payment  that  represents  interest  accrued on the  related
Mortgage  Loan for any period  prior to the Cut-Off Date or  Subsequent  Cut-off
Date, as applicable;

     (d) during the Group I Revolving Period and the Managed Amortization Period
for the Class  A-I-1  Notes and the Group II  Revolving  Period and the  Managed
Amortization Period for the Class A-II Notes, from Principal  Collections on the
Mortgage  Loans in the  related  Loan Group,  and, on or after the Payment  Date
occurring in January  2004, if Principal  Collections  are not  sufficient  from
Group  Excess  Spread from the  related  Loan  Group,  to pay to the Seller,  as
designee of the Depositor,  the amount of any Additional  Balances,  as and when
created  during the  related  Collection  Period,  but only to the  extent  that
amounts on deposit in the related  Funding  Account are not  sufficient for such
purpose; provided that Excess Spread shall not be so applied if the Enhancer has
not been  reimbursed  for all draws made under the Policy,  with  interest;  and
provided  further that Excess Spread  (calculated  with respect to the following
Payment  Date)  in the  Custodial  Account  will  not  be  applied  to  purchase
Additional   Balances   to   the   extent   that   after   such   purchase   the
Overcollateralization  Amount  would  exceed  the  Overcollateralization  Target
Amount,  or the  Total  Overcollateralization  Amount  would  exceed  the  Total
Overcollateralization Target Amount, calculated in each case as of the following
Payment Date;

     (e) to the extent deposited to the Custodial  Account,  to reimburse itself
or the related  Subservicer  for previously  unreimbursed  expenses  incurred in
maintaining   individual  insurance  policies  pursuant  to  Section 3.05,   for
Servicing  Advances,  for fees payable  pursuant to  Section 3.08,  for expenses
payable  pursuant  to  Section 3.10,   for  amounts  reimbursable   pursuant  to
Section 6.03 or Liquidation Expenses, paid pursuant to Section 3.08 or otherwise
reimbursable  pursuant to the terms of this Agreement (to the extent not payable
pursuant  to  Section 3.10),  such  withdrawal  right  being  limited to amounts
received  on  particular  Mortgage  Loans  (other than any

                                       11

<PAGE>

Repurchase  Price in respect  thereof)  that  represent  late  recoveries of the
payments for which such  advances  were made,  or from  related Net  Liquidation
Proceeds or the proceeds of the purchase of such Mortgage Loan;

     (f) to pay  itself an amount  equal to the  related  Servicing  Fee (to the
extent not retained pursuant to Section 3.03);

     (g)  to  the  extent  deposited  in the  Custodial  Account,  to pay to the
Servicer as  additional  servicing  compensation  any (i) interest or investment
income earned on funds deposited in the Custodial Account that it is entitled to
withdraw pursuant to Section 3.03,  and (ii) Foreclosure  Profits (to the extent
permitted by law);

     (h) to pay to the Seller,  with  respect to any  Mortgage  Loan or property
acquired in respect thereof that has been purchased or otherwise  transferred to
the Seller,  the Servicer or other entity,  all amounts received thereon and not
required  to be  distributed  to  Securityholders  as of the date on  which  the
related Purchase Price or Repurchase Price is determined;

     (i) to withdraw  any other  amount,  determined  without  duplication  with
respect to an other amount provided for in this  Section 3.04,  deposited in the
Custodial  Account  that was not required to be  deposited  therein  pursuant to
Section 3.03;

     (j) to pay to the Servicer, with respect to any Mortgage Loan for which the
Servicer has made a P&I Advance that has not been  previously  reimbursed to the
extent  of  receipts  of late  recoveries  of such  payments  from  the  related
Mortgagor,  out of related  Net  Liquidation  Proceeds  or the  proceeds  of the
purchase of such Mortgage Loan; and

     (k) to reimburse  the  Servicer for any advances or expenses  that have not
been previously reimbursed pursuant to such clauses (e) or (j).

     Since,  in connection with  withdrawals  pursuant to clauses (c), (e), (f),
(h) and (j), the  Servicer's  entitlement  thereto is limited to  collections or
other  recoveries  on the related  Mortgage  Loan,  the Servicer  shall keep and
maintain separate accounting, on a Mortgage Loan by Mortgage Loan basis, for the
purpose of justifying any withdrawal from the Custodial Account pursuant to such
clauses.  Notwithstanding  any other provision of this  Agreement,  the Servicer
shall be  entitled  to be  reimbursed  itself  for any  previously  unreimbursed
expenses incurred pursuant to Section 3.08 or otherwise reimbursable pursuant to
the  terms  of this  Agreement  that the  Servicer  determines  to be  otherwise
nonrecoverable,  by withdrawal from the Custodial  Account of amounts on deposit
therein  attributable  to the  Mortgage  Loans on any  Business Day prior to the
Payment Date succeeding the date of such determination.

     If any  deposit  required  to be made by the  Servicer  pursuant to Section
3.04(b) is not made when due, the Servicer shall pay to the Paying Agent, out of
the  Servicer's  own funds,  one day of interest on such late payment,  at a per
annum  rate  equal to the  effective  Federal  Funds  Rate for such  date.  Such
interest shall be remitted to the Paying Agent on the same day that the Servicer
remits the late remittance to the Paying Agent.

     Section 3.05 Maintenance of Hazard Insurance; Property Protection Expenses.
To the extent  permitted  under the related Loan Agreement and Mortgage,  and to
the extent the Servicer

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<PAGE>

receives notice that a hazard insurance policy has been cancelled,  the Servicer
shall cause to be maintained for each Mortgage Loan hazard  insurance naming the
Servicer or related  Subservicer  as loss payee  thereunder  providing  extended
coverage  in an amount  which is at least equal to the lesser of (i) the maximum
insurable  value of the  improvements  securing  such Mortgage Loan from time to
time or (ii) the combined  principal balance owing on such Mortgage Loan and any
mortgage loan senior to such Mortgage Loan from time to time; provided, however,
that such  coverage  may not be less than the minimum  amount  required to fully
compensate  for any loss or damage on a  replacement  cost basis.  The  Servicer
shall use its best efforts to monitor that hazard  insurance  is  maintained  as
described in the  previous  sentence in the same manner as it would for mortgage
loans  in its own  portfolio.  The  Servicer  shall  cause to be  maintained  on
property  acquired  upon  foreclosure,  or deed in lieu of  foreclosure,  of any
Mortgage Loan,  fire  insurance with extended  coverage in an amount which is at
least equal to the amount necessary to avoid the application of any co-insurance
clause contained in the related hazard insurance  policy,  the premium for which
shall be a  Servicing  Advance  within  the  meaning of  Section  3.08.  Amounts
collected  by the  Servicer  under any such  policies  (other than amounts to be
applied  to the  restoration  or repair of the  related  Mortgaged  Property  or
property thus acquired or amounts  released to the Mortgagor in accordance  with
the Servicer's normal servicing  procedures) shall be deposited in the Custodial
Account  to the  extent  called  for by  Section  3.03.  In cases  in which  any
Mortgaged  Property is located at any time during the life of a Mortgage Loan in
a federally  designated  flood area, to the extent  permitted  under the related
Loan Agreement and Mortgage, and to the extent the Servicer receives notice that
the related  flood  insurance  has been  cancelled,  the hazard  insurance to be
maintained for the related  Mortgage Loan shall include flood  insurance (to the
extent  available).  All such flood  insurance  shall be in amounts equal to the
lesser of (i) the amount  required to  compensate  for any loss or damage to the
related  Mortgaged  Property  on a  replacement  cost basis and (ii) the maximum
amount  of such  insurance  available  for such  Mortgaged  Property  under  the
national flood insurance program (assuming that the area in which such Mortgaged
Property is located is  participating  in such program).  The Servicer shall use
its best  efforts to monitor  such flood  insurance as described in the previous
sentence in the same manner as it would for mortgage loans in its own portfolio.
The Servicer shall be under no obligation to require that any Mortgagor maintain
earthquake or other additional insurance and shall be under no obligation itself
to maintain any such additional  insurance on property  acquired in respect of a
Mortgage Loan,  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  Servicer  shall obtain and maintain a blanket  policy  consistent  with its
general mortgage servicing  activities  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  sentence of this Section  3.05, 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 a policy complying with the first sentence of
this Section 3.05 and there shall have been a loss which would have been covered
by such policy,  deposit in the  Custodial  Account the amount of such loss that
would have  otherwise  been covered.  Any such deposit by the Servicer  shall be
made on the last  Business  Day of the  Collection  Period in the month in which
payments  under any such  policy  would  have been  deposited  in the  Custodial
Account.  In connection  with its activities as servicer of the Mortgage  Loans,
the  Servicer  agrees to  present,  on  behalf of  itself,  the  Issuer  and the
Indenture Trustee, claims under any such blanket policy.

                                       13

<PAGE>

     Section 3.06 Modification Agreements.

     (a) The Servicer or the related  Subservicer,  as the case may be, shall be
entitled to (a) execute  assumption  agreements,  substitution  agreements,  and
instruments of  satisfaction  or  cancellation  or of partial or full release or
discharge,  or any  other  document  contemplated  by this  Agreement  and other
comparable  instruments  with respect to the Mortgage  Loans and with respect to
the related Mortgaged  Properties (and the Issuer and the Indenture Trustee each
shall  promptly  execute any such  documents on request of the Servicer) and (b)
approve  the  granting of an easement  thereon in favor of another  Person,  any
alteration or demolition of such Mortgaged  Properties or other similar matters,
if it has  determined,  exercising its good faith business  judgment in the same
manner as it would if it were the owner of the related Mortgage Loans,  that the
security for, and the timely and full  collectability  of, such  Mortgage  Loans
would not be adversely  affected  thereby.  A partial  release  pursuant to this
Section 3.06  shall be permitted only if the CLTV for the related  Mortgage Loan
after such partial release does not exceed the CLTV for such Mortgage Loan as of
the Cut-Off Date or related  Subsequent  Cut-Off  Date, as  applicable.  Any fee
collected by the Servicer or the related Subservicer for processing such request
will be retained by the Servicer or such  Subservicer  as  additional  servicing
compensation.

     (b)  Notwithstanding any other provision of this Agreement to the contrary,
the Servicer, at its option and in its sole discretion,  may modify any Mortgage
Loan to (i) change the Loan Rate  payable on the  related  Mortgage  Loan,  (ii)
increase the credit limit on the related Mortgage Loan above the limit stated in
the related Loan Agreement,  (iii) refinance the existing senior Lien or place a
new senior Lien related to a Mortgage  Loan  resulting in a CLTV Ratio above the
previous  CLTV Ratio for such  Mortgage  Loan,  or (iv) make any other  material
modification to the related Mortgage Loan; provided,  however,  that without the
consent of the Enhancer,  the aggregate  Principal Balance of the Mortgage Loans
modified by this Section 3.06(b)  shall not exceed five percent (5%) of the Pool
Balance as of the Cut-Off  Date;  provided,  further,  that any  decision by the
Servicer to modify a Mortgage Loan shall be normal and usual in accordance  with
its general mortgage servicing activities and consistent with the procedures the
Servicer  employs  in  servicing  all  other  Mortgage  Loans  in the  servicing
portfolio  with   characteristics   similar  to  those  of  the  Mortgage  Loans
(including,  but not limited to,  analysis of credit  scores,  overall  customer
relationships and comparable industry standards).

     Section 3.07 Trust Estate; Related Documents.

     (a) When required by the  provisions of this  Agreement,  the Issuer or the
Indenture Trustee shall execute instruments furnished to them by the Servicer to
release  property  from the  terms  of the  Trust  Agreement  or  Indenture,  as
applicable,  or convey the Issuer's or the Indenture  Trustee's  interest in the
same, in a manner and under  circumstances  that are not  inconsistent  with the
provisions of this  Agreement.  No party relying upon an instrument  executed by
the Issuer or the Indenture  Trustee as provided in this  Section 3.07  shall be
bound to ascertain the Issuer's or the Indenture  Trustee's  authority,  inquire
into the  satisfaction of any conditions  precedent or see to the application of
any moneys.

     (b) Upon receipt of a Request for Release from the Servicer,  substantially
in the form of Exhibit D hereto, to the effect that a Mortgage Loan has been the
subject of a final  payment or

                                       14

<PAGE>

a  prepayment  in full  and such  Mortgage  Loan  has  been  terminated  or that
substantially  all Net  Liquidation  Proceeds  that have been  determined by the
Servicer  in  its  reasonable  judgment  to be  finally  recoverable  have  been
recovered,  and upon  deposit to the  Custodial  Account  of such final  monthly
payment,  prepayment in full  together  with accrued and unpaid  interest to the
date of such payment with respect to such Mortgage Loan or, if  applicable,  Net
Liquidation Proceeds, the Indenture Trustee shall execute such Related Documents
furnished  to it,  along with such  documents  as the  Servicer  or the  related
Mortgagor  may request to evidence  satisfaction  and discharge of such Mortgage
Loan, upon request of the Servicer.

     Section 3.08 Realization upon Defaulted Mortgage Loans.

     (a) The Servicer shall,  consistent with the provisions of the Mortgage and
the Collection Policy, foreclose upon or otherwise comparably convert (which may
include  acquisition of an REO Property) the ownership of any Mortgaged Property
securing a Mortgage  Loan (but shall not sell or convey such  Mortgage  Loan) in
the event of a default under the Mortgage when no satisfactory  arrangements can
be made for collection of delinquent payments pursuant to Section 3.02,  subject
to the  provisions  contained in this  Section 3.08(a)  and only if the Servicer
determines that there is sufficient equity in the related Mortgaged  Property to
justify  such  foreclosure.   In  connection  with  such  foreclosure  or  other
conversion,  the  Servicer  shall use  reasonable  efforts to realize  upon such
defaulted Mortgage Loan in such manner as will maximize the receipt of principal
and interest  thereon,  taking into account,  among other things,  the timing of
foreclosure proceedings.  The Servicer shall pay all costs and expenses incurred
by it in any such proceedings;  provided,  however, that such costs and expenses
shall be deemed to be a "Servicing Advance" and the Servicer shall be reimbursed
therefor as provided in Section 3.04  hereof;  provided,  further,  that, in any
case in which the Mortgaged  Property  shall have suffered  damage such that the
complete  restoration  thereof is not fully  reimbursable by insurance  policies
required to be  maintained  with  respect  thereto,  the  Servicer  shall not be
required to expend its own funds to restore such  Mortgaged  Property  unless it
shall  determine,  in good  faith,  that  such  restoration  will  increase  the
Liquidation  Proceeds  to the  Trust  after  reimbursement  to  itself  for such
expenses.  In  addition  to the  reimbursement  of its costs and  expenses,  the
Servicer shall be entitled to a reasonable and customary fee as agreed to by the
Servicer and the Issuer for performing any  foreclosure  activities  pursuant to
this Section 3.08(a), which fee shall be payable pursuant to Section 3.04.

     (b)  Any  Liquidation  Proceeds,   Insurance  Proceeds,   REO  Proceeds  or
Condemnation  Proceeds  received  in respect of a  Mortgaged  Property  shall be
deposited in the Custodial Account pursuant to Section 3.03 and applied pursuant
to Section 3.04.

     (c) In connection with such foreclosure or other  conversion,  the Servicer
shall exercise  collection  and  foreclosure  procedures in accordance  with the
Collection  Policy and with the same degree of care and skill in its exercise or
use as it would  exercise or use under the  circumstances  in the conduct of its
own affairs. The Servicer shall take into account the existence of any hazardous
substances,  hazardous wastes or solid wastes,  as such terms are defined in the
Comprehensive   Environmental  Response  Compensation  and  Liability  Act,  the
Resource Conservation and Recovery Act of 1976, or other federal, state or local
environmental  legislation,  on a Mortgaged  Property in determining  whether to
foreclose  upon or  otherwise

                                       15

<PAGE>

comparably convert the ownership of a Mortgaged  Property.  Any amounts advanced
in connection with such foreclosure or other action shall constitute  "Servicing
Advances."

     Section  3.09  Management  and Sale of REO  Property.  The  Servicer  shall
manage,  conserve,  protect and operate each REO Property solely for the purpose
of its prudent and prompt  disposition  and sale;  provided,  however,  that the
Servicer shall  complete such sale and  disposition no later than, and the Trust
shall not retain  ownership of any REO Property for longer than, 36 months after
the date on which such REO  Property  is  acquired  by the Trust.  The  Servicer
shall,  either  itself or through an agent  selected  by the  Servicer,  manage,
conserve,  protect  and  operate  the REO  Property  in the same  manner that it
manages, conserves,  protects and operates other foreclosed property for its own
account,  and in the same manner that similar  property in the same  locality as
the REO Property is managed.  The Servicer  shall  attempt to sell the same (and
may  temporarily  rent the same) on such terms and  conditions  as the  Servicer
deems to be in the best interest of the Securityholders and the Trust.

     The Servicer shall cause to be set aside pursuant to Section 3.03, no later
than five Business Days after the receipt  thereof,  all revenues  received with
respect to the  conservation  and disposition of the related REO Property net of
funds necessary for the proper operation,  management and maintenance of the REO
Property and the fees of any managing agent acting on behalf of the Servicer.

     The  disposition  of REO Property  shall be carried out by the Servicer for
cash at such price, and upon such terms and conditions, as the Servicer deems to
be in the best interest of the  Securityholders and the Trust. The cash proceeds
of sale of the REO Property shall be promptly set aside pursuant to Section 3.03
as  received  from  time to time and,  as soon as  practicable  thereafter,  the
expenses  of such sale  shall be paid.  Any costs or  advances  of the  Servicer
pursuant to this  Section 3.09  also shall constitute  Servicing  Advances.  The
Servicer shall reimburse itself for any related unreimbursed  Servicing Advances
and unpaid Servicing Fees pursuant to Section 3.04.

     Section 3.10 Issuer and  Indenture  Trustee to  Cooperate.  Upon receipt of
payment  in full,  the  Servicer  is  authorized  to  execute,  pursuant  to the
authorization  contained  in  Section 3.01(c),  an  instrument  of  satisfaction
regarding  the related  Mortgage,  which  instrument  of  satisfaction  shall be
recorded by the Servicer if required by  applicable  law and be delivered to the
Person entitled thereto.  It is understood and agreed that any expenses incurred
in  connection  with  such  instrument  of  satisfaction  or  transfer  shall be
reimbursed  from  amounts  deposited  in the  Custodial  Account as  provided in
Section 3.04.  From  time to  time  and as  appropriate  for  the  servicing  or
foreclosure of any Mortgage Loan and in accordance  with the provisions  hereof,
upon  request of the Servicer to the Issuer,  of a Request for  Release,  in the
form attached  hereto as Exhibit D, Issuer or Indenture  Trustee shall  promptly
execute  such  documents,  in the forms  provided by the  Servicer,  as shall be
necessary for the  prosecution  of any such  proceedings  or the taking of other
servicing actions.

     In order  to  facilitate  the  foreclosure  of the  Mortgage  securing  any
Mortgage Loan that is in default following recordation of the related Assignment
of Mortgage  to the  Indenture  Trustee or the Issuer if required in  accordance
with the provisions of the Purchase  Agreement or this Agreement,  the Indenture
Trustee or the  Issuer  shall,  if so  requested  in  writing  by the  Servicer,

                                       16

<PAGE>

promptly execute an appropriate  assignment in the form provided by the Servicer
to assign such  Mortgage Loan for the purpose of collection to the Servicer (any
such  assignment  shall  unambiguously  indicate that the  assignment is for the
purpose of collection only), and, upon such assignment, the Servicer as assignee
for  collection  will thereupon  bring all required  actions in its own name and
otherwise  enforce the terms of such Mortgage Loan and deposit or credit the Net
Liquidation  Proceeds,  exclusive of Foreclosure Profits,  received with respect
thereto into the Custodial  Account.  In the event that all delinquent  payments
due  under  any  such  Mortgage  Loan are paid by the  Mortgagor  and any  other
defaults are cured,  then the Servicer as assignee for collection shall promptly
reassign  such  Mortgage  Loan to the  Indenture  Trustee and return all Related
Documents to the place where the related Mortgage File was being maintained.

     In connection with the Issuer's obligation to cooperate as provided in this
Section 3.10 and all other provisions of this Agreement  requiring the Issuer to
authorize or permit any actions to be taken with respect to the Mortgage  Loans,
the  Indenture  Trustee,  as pledgee of the  Mortgage  Loans and as  assignee of
record of the Mortgage Loans on behalf of the Issuer pursuant to Section 3.13 of
the  Indenture,  expressly  agrees,  on behalf of the  Issuer,  to take all such
actions  on  behalf of the  Issuer  and  promptly  to  execute  and  return  all
instruments  reasonably  required  by  the  Servicer  in  connection  therewith;
provided,  however,  that if the Servicer  requests a signature of the Indenture
Trustee  on  behalf  of the  Issuer,  then the  Servicer  shall  deliver  to the
Indenture  Trustee an  Officer's  Certificate  stating  that such  signature  is
necessary or  appropriate  to enable the Servicer to carry out its servicing and
administrative duties under this Agreement.

     Section 3.11 Compensation; Payment of Certain Expenses.

     (a) As  compensation  for its services  hereunder,  the  Servicer  shall be
entitled to receive the  Servicing Fee in accordance  with  Section 3.03(b)  and
Section 3.04 as compensation for its services hereunder.  Moreover, late payment
charges and the other amounts specified in Section 3.03(b)  shall be retained by
the Servicer as additional servicing compensation.

     (b) The Servicer  shall be required to pay all  expenses  incurred by it in
connection with its servicing or administrative  activities  hereunder,  and all
fees and expenses of the Owner Trustee,  the Paying Agent,  the Note  Registrar,
the  Certificate  Paying  Agent,  the  Certificate  Registrar  and the Indenture
Trustee, and shall not be entitled to reimbursement therefor except as otherwise
provided in this Agreement.

     Section 3.12 Annual Statement as to Compliance.

     (a) The Servicer shall deliver to the Issuer,  the Indenture  Trustee,  the
Paying Agent,  the Depositor and the  Underwriter,  with a copy to the Enhancer,
beginning March 31, 2004, and on or before March 31 of each year thereafter,  an
Officer's  Certificate  stating  that  (i) a  review  of the  activities  of the
Servicer  during the preceding  calendar year and of its  performance  under any
servicing agreements to which it is a party, including this Agreement,  has been
made under such  officer's  supervision  and (ii) to the best of such  officer's
knowledge,  based on such  review,  the  Servicer  has  complied in all material
respects with the minimum  servicing  standards set forth in the Uniform  Single
Attestation  Program for Mortgage  Bankers and has fulfilled all of its material
obligations in all material respects throughout such year, or, if there has been
material

                                       17

<PAGE>

noncompliance  with such servicing  standards or a default in the fulfillment in
all material  respects of any such obligation  relating to this Agreement,  such
statement shall include a description of such noncompliance or specify each such
default,  as the case may be,  known to such  officer  and the nature and status
thereof.

     (b) The Servicer  shall  deliver to the Issuer and the  Indenture  Trustee,
with a copy to the Enhancer and the Paying Agent, promptly after having obtained
knowledge  thereof,  but in no event later than five Business  Days  thereafter,
written notice by means of an Officer's  Certificate of any event which with the
giving of notice or the lapse of time or both, would become a Servicing Default.

     Section 3.13 Annual  Servicing  Report.  Beginning March 31, 2004 and on or
before March 31 of each year thereafter, the Servicer at its expense shall cause
a firm of nationally  recognized  independent public accountants (which firm may
also render other  services to the  Servicer) to furnish a report to the Issuer,
each Rating Agency, the Paying Agent and the Indenture  Trustee,  with a copy to
the Enhancer, stating its opinion that, on the basis of an examination conducted
by such firm  substantially  in accordance  with  standards  established  by the
American Institute of Certified Public Accountants, the assertions made pursuant
to Section 3.12  regarding  compliance with the minimum servicing  standards set
forth in the Uniform Single Attestation  Program for Mortgage Bankers during the
preceding calendar year are fairly stated in all material  respects,  subject to
such exceptions and other qualifications that, in the opinion of such firm, such
accounting standards require it to report.

     Section 3.14 Access to Certain  Documentation and Information Regarding the
Mortgage Loans.  Whenever required by statute or regulation,  the Servicer shall
provide to the  Enhancer,  any  Securityholder  upon  reasonable  request  (or a
regulator for a Securityholder) or the Indenture  Trustee,  reasonable access to
the  documentation  regarding the Mortgage Loans.  Such access shall be afforded
without  charge,  but only upon  reasonable  request and during normal  business
hours  at the  offices  of the  Servicer.  Nothing  in this  Section 3.14  shall
derogate  from the  obligation  of the  Servicer to observe any  applicable  law
prohibiting  disclosure of information regarding Mortgagors,  and the failure of
the Servicer to provide access as provided in this  Section 3.14  as a result of
such obligation shall not constitute a breach of this Section 3.14.

     Section 3.15  Maintenance  of Certain  Servicing  Insurance  Policies.  The
Servicer  shall,  during the term of its service as Servicer,  maintain in force
and effect (i) a policy or policies of insurance  covering  errors and omissions
in the performance of its obligations as Servicer  hereunder and (ii) a fidelity
bond in respect  of its  officers,  employees  or  agents.  Each such  policy or
policies and fidelity bond shall be at least equal to the coverage that would be
required  by Fannie  Mae or Freddie  Mac,  whichever  is  greater,  for  Persons
performing  servicing for mortgage loans purchased by such entity.  The Servicer
shall  furnish a copy of such policy or  policies  and/or  fidelity  bond to the
Enhancer upon the Enhancer's reasonable request therefor.

     Section  3.16  Information  Required by the  Internal  Revenue  Service and
Reports of Foreclosures  and  Abandonments of Mortgaged  Property.  The Servicer
shall prepare and deliver all federal and state information reports with respect
to the Mortgage Loans when and as required by all  applicable  state and federal
income  tax  laws.  In  particular,   with  respect  to  the  requirement  under
Section 6050J  of the Code to the effect that the Servicer or Subservicer  shall

                                       18

<PAGE>

make reports of foreclosures and abandonments of any mortgaged property for each
year beginning in 2003, the Servicer or Subservicer  shall file reports relating
to each instance occurring during the previous calendar year in which the Issuer
(a) acquired an interest in any Mortgaged Property through  foreclosure or other
comparable conversion in full or partial satisfaction of a Mortgage Loan, or (b)
knew or had reason to know that any Mortgaged  Property had been abandoned.  The
reports  from  the  Servicer  or  Subservicer  shall  be in form  and  substance
sufficient  to meet the  reporting  requirements  imposed by  Section  6050J and
Section 6050H (reports relating to mortgage interest received) of the Code.

     Section 3.17 Assignments; Recordings of Assignments.

     (a)  Concurrently  herewith,  the Depositor  has  contracted to acquire the
Mortgage  Loans from the Seller and the Issuer has Granted its right,  title and
interest in the Mortgage Loans and other Transferred  Property  constituting the
Trust  Estate to the  Indenture  Trustee to secure  payments  on the Notes.  The
Seller will deliver the original  Loan  Agreements  to the Servicer on behalf of
the  Depositor,  endorsed or assigned  in blank,  to effect the  transfer to the
Issuer  of the  Loan  Agreements  and  all  related  Mortgages  and  other  loan
documents.  The parties  hereto  acknowledge  and agree that the Mortgage  Loans
shall for all purposes be deemed to have been transferred from the Seller to the
Depositor, from the Depositor to the Issuer and from the Issuer to the Indenture
Trustee.

     (b) If the credit  rating of Wachovia is  withdrawn or reduced to "BBB+" by
Standard & Poor's or "Baa1" by Moody's,  the Servicer  shall,  within 30 days of
any such  withdrawal or reduction,  at its own expense,  prepare  Assignments of
Mortgage (which may be included in one or more blanket  assignments if permitted
by  applicable  law) in recordable  form from the Seller to "U.S.  Bank National
Association,  as Indenture Trustee under that certain Indenture dated as of July
2, 2003, for Wachovia Asset  Securitization,  Inc. 2003-HE2 Trust". In addition,
if the credit  rating of Wachovia  is  withdrawn  or reduced to below  "BBB-" by
Standard & Poor's or below "Baa3" by Moody's, the Servicer shall, within 60 days
of any such withdrawal or reduction, at its own expense, submit for recording in
the  appropriate  public office for real  property  records the  Assignments  of
Mortgage for each  Mortgage  Loan,  provided  that no such  recordation  will be
required  in any state  where,  in the  opinion  of  counsel  acceptable  to the
Enhancer,  such  recording  is not required to protect the  Indenture  Trustee's
interests in the Mortgage Loan against the claim of any subsequent transferee or
any  creditor  of the  Seller.  While such  assignment  to be  recorded is being
recorded,  the  Servicer  shall retain a photocopy  of such  assignment.  If any
assignment is lost or returned  unrecorded to the Servicer because of any defect
therein, the Servicer shall prepare a substitute assignment or cure such defect,
as the case may be, and the Servicer shall cause such  assignment to be recorded
in accordance  with this  paragraph.  Any Assignment of Mortgage  required to be
recorded hereunder shall be retained in the Mortgage File.

     Section 3.18 [Reserved].

     Section 3.19 Funding Accounts.

     (a) No later than the Closing Date, the Indenture  Trustee shall  establish
and maintain on behalf of the Enhancer and the Holders of the related  Notes one
or more segregated  trust  accounts,  which shall be Eligible  Accounts,  titled
"Group I Funding Account, U.S. Bank

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<PAGE>

National  Association,  as Indenture Trustee for Wachovia Asset  Securitization,
Inc.  2003-HE2  Trust"  and  "Group  II  Funding  Account,  U.S.  Bank  National
Association,  as  Indenture  Trustee for  Wachovia  Asset  Securitization,  Inc.
2003-HE2  Trust".  Amounts  received with respect to the Mortgage  Loans in Loan
Group I that are to be deposited  into a Funding  Account  shall be deposited in
the Group I Funding  Account and amounts  received  with respect to the Mortgage
Loans in Loan Group II that are to be deposited into a Funding  Account shall be
deposited in the Group II Funding  Account.  In accordance with Section 3.04(b),
on the  Business  Day prior to each  Payment  Date during the related  Revolving
Period,  the Servicer shall withdraw from the Custodial Account and deposit into
the applicable Funding Account (i) the aggregate amount of Principal Collections
for the  related  Loan Group  remaining  after the  purchase  of all  Additional
Balances and (ii) on or after the Payment Date occurring in January 2004, Excess
Spread for the related  Loan  Group,  in each case to the extent  available  and
subject to the provisions of Section 3.05(a) of the Indenture.

     (b) On each  Subsequent  Transfer  Date,  the Servicer  shall  instruct the
Indenture Trustee in writing to withdraw from the applicable  Funding Account an
amount equal to the  aggregate  Principal  Balance as of the related  Subsequent
Cut-Off Date of the  Subsequent  Mortgage  Loans to be sold to the Trust on such
Subsequent  Transfer Date and allocate such  withdrawal to amounts on deposit in
the applicable  Funding Account,  and to pay such amount to or upon the order of
the Seller upon  satisfaction of the conditions set forth in this Agreement,  in
the Purchase  Agreement and in the related  Subsequent  Transfer  Agreement with
respect thereto.

     (c) The Servicer may cause the institution maintaining the Funding Accounts
to invest any funds therein in Permitted  Investments having a maturity of up to
90 days or maturing  or  otherwise  available  not later than the  Business  Day
preceding the related  Payment Date on which funds are scheduled to be withdrawn
to purchase Subsequent Mortgage Loans or Additional  Balances,  provided that no
such investment may be sold or disposed of prior to maturity. If no instructions
are received as to which Permitted  Investments the funds are to be invested in,
the funds shall be invested in Permitted  Investments described in clause (v) of
such definition. In addition, no such Permitted Investment shall be purchased at
a price in excess of par. At any time when the Indenture  Trustee is maintaining
the  Funding  Account,  any request by the  Servicer to invest  funds on deposit
therein  shall be in writing,  delivered to the  Indenture  Trustee at or before
10:30 a.m.,  New York time,  if such  investment  is to be made on such day. The
Servicer shall certify that the requested  investment is a Permitted  Investment
maturing at or prior to the time required  hereby.  Any such investment shall be
registered  in the name of the  Indenture  Trustee  or its  nominee,  and to the
extent  that any such  investment  is  certificated,  such  investment  shall be
maintained  with the Indenture  Trustee at its Corporate  Trust Office.  All net
income or other gain received from any such  investment  shall be deposited into
or credited to the Custodial  Account as Interest  Collections  from the related
Loan Group,  and may be withdrawn  therefrom in accordance with  Section 3.05 of
the Indenture.

     (d) From time to time the Indenture Trustee shall make withdrawals from the
related  Funding  Account  in  accordance  with  written  instructions  from the
Servicer as follows:

          (i) on each  Payment  Date during the related  Revolving  Period,  any
amounts on deposit in the related Funding  Account,  including Excess Spread for
the related Loan Group, shall be withdrawn and applied,  to the extent available
to the Seller, as designee of the Depositor,

                                       20

<PAGE>

as  payment  for  Additional  Balances,  if any,  in an amount  equal to (A) the
aggregate  of all  Draws  during  the  related  Collection  Period or (B) if the
Servicer has applied  amounts on deposit in the Custodial  Account  representing
Principal   Collections  from  the  related  Loan  Group  received  during  such
Collection Period to the purchase of Additional Balances, the excess, if any, of
the aggregate of all Draws during the related  Collection Period over the amount
on deposit in the related Funding Account;

          (ii) on each  Subsequent  Transfer Date, any amounts on deposit in the
related Funding Account,  to the extent not used to purchase Additional Balances
in the  related  Loan  Group,  shall be  withdrawn  and  applied as payment  for
Subsequent  Mortgage Loans in the related Loan Group, if any, in an amount equal
to the aggregate  Principal Balance as of the related Subsequent Cut-Off Date of
the Subsequent Mortgage Loans in the related Loan Group;

          (iii)  prior to 3:00  p.m.  (EST)  on the  Business  Day  prior to the
Payment Date immediately following the last day of the related Revolving Period,
or if the last day of the related  Revolving Period is a Payment Date, not later
than 1:00 p.m. (EST) on such Payment Date,  any amounts  remaining on deposit in
the related Funding Account, if any, after giving effect to clauses (i) and (ii)
above, shall be first deposited into the Distribution Account in an amount equal
to the lesser of (A) the related  Additional Balance Increase Amount and (B) the
amount on deposit in the related Funding Account, and then shall be deposited to
the Note Payment Account for payment to the Noteholders pursuant to Section 3.05
of the Indenture.

     Section 3.20 [Reserved].

     Section 3.21 P&I Advances.

     (a) The Servicer,  in its sole  discretion,  may deposit into the Custodial
Account  (from  its own  funds)  an  amount  equal to the  aggregate  amount  of
principal of or interest on Mortgage Loans that were delinquent as of the end of
any Collection Period ("P&I Advances").  The Servicer shall notify the Indenture
Trustee and the Paying Agent by a certificate  of the  Servicing  Officer of (i)
the  aggregate  amount of P&I Advances for a Payment Date and (ii) the amount of
any Nonrecoverable P&I Advances for such Payment Date.

     (b) Notwithstanding  anything herein to the contrary,  no P&I Advance shall
be required to be made  hereunder or shall be made hereunder if such P&I Advance
would, if made,  constitute a Nonrecoverable P&I Advance. On the fourth Business
Day before each Payment  Date,  the Servicer  shall  determine  whether each P&I
Advance made with respect to any previous Payment Date is a  Nonrecoverable  P&I
Advance.

     Section 3.22 Transfer of Mortgage Loans.

     (a) Subject to the conditions set forth below,  the Servicer,  upon receipt
of written notice and direction  from the Issuer,  shall cause the retransfer of
Mortgage  Loans from the Trust  Estate to the Issuer as of the close of business
on a  Payment  Date  (the  "Transfer  Date").  On the  fifth  Business  Day (the
"Transfer  Notice Date") prior to the Transfer  Date  designated in such notice,
the Servicer shall give the Indenture Trustee,  the Rating Agencies,  the Paying
Agent and the Enhancer a notice of the proposed  retransfer that contains a list
of the Mortgage Loans to be

                                       21

<PAGE>

retransferred.  Such  retransfers  of  Mortgage  Loans shall be  permitted  upon
satisfaction of the following conditions:

          (i) No Rapid Amortization Event has occurred;

          (ii) On the Transfer  Date, the  Overcollateralization  Amount for the
related Loan Group (after  giving effect to the removal from the Trust Estate of
the  Mortgage  Loans  proposed  to be  retransferred)  will  equal or exceed the
Overcollateralization  Target Amount for the related Loan Group, but only to the
extent  necessary so that the Total  Overcollateralization  Amount (after giving
effect to the removal from the Trust Estate of the Mortgage Loans proposed to be
retransferred) equals the Total Overcollateralization Target Amount;

          (iii) The retransfer of any Mortgage Loans on any Transfer Date during
a  Managed  Amortization  Period  shall  not,  in the  reasonable  belief of the
Servicer,  cause a Rapid  Amortization  Event to occur  or an event  which  with
notice or lapse of time or both would constitute a Rapid Amortization Event;

          (iv) On or before the Transfer Date, the Servicer shall have delivered
to the Indenture  Trustee and the Paying Agent a revised  Mortgage Loan Schedule
showing that the Mortgages Loans  transferred to the  Certificateholders  are no
longer owned by the Trust Estate;

          (v) The Servicer  shall  represent and warrant that the Mortgage Loans
to be removed  from the Trust  Estate were  selected at random and the  Servicer
shall have  received  the  consent of the  Enhancer as to the  selection  of the
particular Mortgage Loans to be removed; and

          (vi) The Enhancer shall have consented to the Transfer;

          (vii) Notice of such removal has been given to the Rating Agencies;

          (viii) Such transfer may only occur once per month;

          (ix) The Outstanding  Principal  Balance of the  Transferred  Mortgage
Loans shall not be greater  than the  Outstanding  Additional  Balance  Increase
Amount immediately prior to such transfer; and

          (x) The Servicer  shall have delivered to the Indenture  Trustee,  the
Paying Agent and the Enhancer an Officer's Certificate certifying that the items
set forth in subparagraphs (i) through (ix),  inclusive,  have been performed or
are true and correct,  as the case may be. The Indenture  Trustee and the Paying
Agent may conclusively rely on such Officer's Certificate, shall have no duty to
make  inquiries  with regard to the matters set forth therein and shall incur no
liability in so relying.

     The  Servicer  shall not be  permitted  to  effect  the  retransfer  of any
Mortgage Loan except under the conditions  specified  above.  Upon receiving the
requisite notice and direction from the Issuer,  the Servicer shall perform in a
timely manner those acts required of it, as specified above.  Upon  satisfaction
of the above  conditions,  on the Transfer Date the Servicer shall  deliver,  or
cause to be delivered, to the Issuer a written itemization of each Mortgage Loan
being transferred,  together with the Mortgage File for each such Mortgage Loan,
and the  Indenture

                                       22

<PAGE>

Trustee  shall  execute  and  deliver to the Issuer or its  designee  such other
documents prepared by the Servicer as shall be reasonably  necessary to transfer
such Mortgage  Loans to the  Certificateholders.  Any such transfer of the Trust
Estate's  right,  title and  interest in and to Mortgage  Loans shall be without
recourse, representation or warranty by or of the Indenture Trustee or the Trust
Estate to the Issuer or its designee.

     Section 3.23 Notice of Rating Change.

     In the event that there is any  change in the  ratings of the Class  A-II-2
Notes at any time on or after the Closing Date,  the Servicer shall give written
notice to the Auction  Agent of such event or if the Class  A-II-2  Notes are no
longer held in Book-Entry  Form,  the Paying Agent shall give written  notice to
the Servicer,  the Enhancer and the Auction  Agent of such event,  in each case,
within (3) Business Days of actual  notice or receipt of written  notice of such
change,  but not later than (1)  Business Day  immediately  preceding an Auction
Date if the Servicer or Indenture  Trustee had actual notice or received written
notice of such change prior to 12:00 noon on such  Business Day, and the Auction
Agent shall take into account  such change for purposes  hereof and any Auction,
so long as such notice is received by the Auction  Agent no later than the close
of business on such Business Day.

     Section  3.24  Calculation  of LIBOR,  Note Rate,  Net WAC Rate and Maximum
Auction Rate.

          The Servicer hereby agrees to:

          (a) determine  LIBOR for each Interest  Period in accordance  with the
Indenture and advise the Auction Agent of such rate as soon as  practicable  but
not later than 9:30 a.m. on the Auction Date;

          (b)  determine  the Note Rate for the Class A-I-1 Notes,  Class A-II-1
Notes  and the  Class  A-II-2  Notes  in  accordance  with  Section  3.27 of the
Indenture;

          (c)  determine  each Net WAC Rate and, no later than the  Business Day
preceding  each Auction Date,  advise the Auction Agent in writing of such rate;
and

          (d) if the Class A-II-2 Notes are no longer held in  Book-Entry  Form,
calculate the Maximum Auction Rate on the Business Day immediately preceding the
first day of each Interest Period.

                                       23

<PAGE>

                                   ARTICLE IV

                             Servicing Certificate

     Section 4.01 Statements to Securityholders.

     (a) With respect to each Payment  Date,  on the Business Day  following the
related Determination Date, the Servicer shall forward the Servicing Certificate
to the Indenture Trustee and the Paying Agent, and the Paying Agent, pursuant to
Section 3.26  of the  Indenture,  shall on such Payment Date make such Servicing
Certificate available to each Certificateholder, each Noteholder, the Depositor,
the Owner  Trustee,  the  Certificate  Paying  Agent,  the Paying Agent and each
Rating Agency, with a copy to the Enhancer.  The Servicing Certificate shall set
forth the following information as to the Notes and Certificates,  to the extent
applicable:

          (i)  for  each  Loan  Group,  the  aggregate  amount  of (a)  Interest
Collections,  (b) Principal  Collections  (and, with respect to any Payment Date
relating to the Managed  Amortization  Period,  Net Principal  Collections)  and
(c) Substitution Adjustment Amounts for such Collection Period;

          (ii) the amount of such distribution as principal to the Noteholders;

          (iii) the amount of such  distribution as interest to the Noteholders,
the amount thereof,  if any,  payable in respect of unpaid Interest  Shortfalls,
and the amount of any Interest Shortfalls for the related Payment Date;

          (iv) each  Deficiency  Amount,  if any,  for such Payment Date and the
aggregate amount of prior draws on the Policy thereunder not yet reimbursed;

          (v) for the Class A-I-1 Notes and the Class A-II-1 Notes,  the amount,
if any, received under the related Yield Maintenance Agreement;

          (vi) the amount of such distribution to the Certificateholders;

          (vii) the amount of any related  Additional  Balance  Increase  Amount
payable to the  Certificateholders  and the amount of Principal Collections paid
in respect of such related Additional Balance Increase Amount;

          (viii)  with  respect  to each Loan  Group,  the  aggregate  Principal
Balance of the Mortgage Loans as of the end of the preceding Collection Period;

          (ix) with  respect  to each  Loan  Group,  the  number  and  aggregate
Principal Balances of Mortgage Loans (a) as to which the Minimum Monthly Payment
is delinquent for 30-59 days,  60-89 days,  90-119 days,  120-149 days,  150-179
days and 180 or more days,  respectively,  (b) the related Mortgaged Property of
which  has  been  foreclosed  upon  and (c) as to which  the  related  Mortgaged
Property has become REO  Property,  in each case as of the end of the  preceding
Collection  Period;  provided,  however,  that  such  information  shall  not be
provided on the statements relating to the first Payment Date;

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<PAGE>

          (x) LIBOR for each of the Class A-I-1  Notes,  Class  A-II-1 Notes and
Class A-II-2 Notes for the related Interest Period;

          (xi) the Note Rate for each of the Class  A-I-1  Notes,  Class  A-II-1
Notes and the Class A-II-2 Notes for such Payment Date;

          (xii) the Net WAC Rate for each of the Class A-I-1 Notes, Class A-II-1
Notes and the Class A-II-2 Notes for the related Collection Period;

          (xiii)  prior  to  the  second   Determination   Date   following  the
commencement  of  the  Rapid  Amortization   Period,  the  aggregate  amount  of
Additional  Balances created during the previous  Collection Period and conveyed
to the Issuer prior to the commencement of the Rapid Amortization Period;

          (xiv) the  aggregate  Liquidation  Loss  Amounts  for each Loan  Group
(other than amounts allocated in respect of the Excluded Amount) with respect to
the  related   Collection   Period,  the  amount  distributed  as  principal  to
Noteholders  in respect of  Liquidation  Loss  Amounts and the  aggregate of the
Liquidation  Loss Amounts (minus any  Subsequent Net Recovery  Amounts and other
than amounts  allocated in respect of the Excluded  Amount) from all  Collection
Periods to date  expressed as dollar amount and as a percentage of the aggregate
Cut-Off Date Principal Balances of the Mortgage Loans;

          (xv) the Note Balance of the Notes and the Certificate  Balance of the
Certificates  after  giving  effect to the  distribution  of  principal  on such
Payment Date;

          (xvi) with  respect to each Loan  Group,  the  balance of the  related
Funding Account as of the end of the preceding Collection Period;

          (xvii) the Percentage  Interest  applicable to each of the Securities,
after application of payments made on such Payment Date;

          (xviii)   with    respect   to   each   Loan   Group,    the   related
Overcollateralization Amount as of the end of the preceding Collection Period;

          (xvii)..with  respect  to each Loan  Group,  the  aggregate  Principal
Balance of Subsequent  Mortgage Loans  transferred to the Trust Estate since the
Closing Date;

          (xix) the arithmetic  average of the Net Excess Spread  Percentage for
the two most recently concluded Collection Periods;

          (xx) the  arithmetic  average of the Net Excess Spread  Percentage for
the three most recently concluded Collection Periods; and

          (xxi) on or after the  Stepdown  Date,  a statement  (yes or no) as to
whether Condition 1, Condition 2 or Condition 3 is in effect.

     In the case of  information  furnished  pursuant to clauses  (ii) and (iii)
above,  the amounts shall be expressed as an aggregate dollar amount per Note or
Certificate, as applicable, with a

                                       25

<PAGE>

$25,000  denomination  and per Certificate  with a denomination  equal to a 100%
Percentage Interest.

     If a Managed  Amortization Event, a Rapid Amortization Event or a Servicing
Default shall occur,  on the Business Day  following  the related  Determination
Date, the Servicer shall forward to the Indenture  Trustee and the Paying Agent,
a statement  to such  effect,  including  the nature of such Rapid  Amortization
Event or  Servicing  Default.  The  Paying  Agent  shall  deliver or cause to be
delivered by mail to each Certificateholder,  each Noteholder, the Enhancer, the
Depositor,  the Owner  Trustee,  the  Certificate  Paying  Agent and each Rating
Agency,  notice of such Managed  Amortization Event, Rapid Amortization Event or
Servicing  Default,  including,  in the case of a Rapid  Amortization Event or a
Servicing  Default,  the nature  thereof.  Such statement may be included in, or
separate from, the regular statement sent to Securityholders.

     The Paying Agent shall make the Servicing  Certificate (and, at its option,
any additional files  containing the same information in an alternative  format)
available each month to Securityholders  and the Enhancer,  and other parties to
this  Agreement via the Paying  Agent's  internet  website.  The Paying  Agent's
internet   website  shall   initially  be  located  at   "www.firstlinkabs.com".
Assistance  in using the website  can be obtained by calling the Paying  Agent's
customer  service  desk at (800)  665-9359.  Parties  that are unable to use the
above  distribution  option are entitled to have a paper copy mailed to them via
first class mail by calling the customer  service desk and indicating  such. The
Paying  Agent  shall  have  the  right  to  change  the  way the  statements  to
Securityholders  are  distributed  in  order  to  make  such  distribution  more
convenient  and/or more  accessible  to the above  parties and the Paying  Agent
shall provide timely and adequate  notification  to all above parties  regarding
any such changes.  The Paying Agent may require  registration and the acceptance
of a disclaimer in connection with access to its website

     (b) The Servicer  shall  forward to the Paying Agent any other  information
reasonably  requested  by the  Paying  Agent  necessary  to  make  distributions
pursuant to Section 3.05 of the Indenture. Prior to the close of business on the
Business Day next succeeding each Determination Date, the Servicer shall furnish
a written  statement to the Certificate  Paying Agent,  the Paying Agent and the
Indenture  Trustee setting forth the aggregate  amounts required to be withdrawn
from the Custodial Account and deposited into the Note Payment Account,  Funding
Accounts and/or  Distribution  Account on the Business Day preceding the related
Payment Date pursuant to Section 3.04. The determination by the Servicer of such
amounts shall,  in the absence of obvious error,  be deemed to be  presumptively
correct for all purposes hereunder,  and the Owner Trustee, the Paying Agent and
the  Indenture  Trustee  shall be protected in relying upon the same without any
independent  check or  verification.  In  addition,  upon the  Issuer's  written
request,  the  Servicer  shall  promptly  furnish  such  information  reasonably
requested by the Issuer that is  reasonably  available to the Servicer to enable
the Issuer to perform its federal and state income tax reporting obligations.

     Section 4.02 Tax Returns and 1934 Act Reports

     (a) The  Servicer  agrees to perform the  obligations  of the  Servicer set
forth in Section 5.03 of the Trust Agreement. The Servicer will prepare and file
or cause to be prepared and filed all tax and  information  returns of the Trust
Estate.

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<PAGE>

     (b) The Servicer  shall  prepare all reports on behalf of the Trust Estate,
including,  but not  limited  to,  all  Forms  8-K and  Forms  10-K,  and,  when
applicable,  any Form 15, that are required under the Securities Exchange Act of
1934, as amended,  and any certifications  required by the Sarbanes-Oxley Act of
2002 to be filed with such Forms 10-K.  The Servicer  shall continue to file all
Forms 8-K and Forms 10-K with respect to the Trust Estate until  directed by the
Depositor in writing to discontinue such filings.

                                   ARTICLE V

                              Note Payment Account

     Section 5.01 Note Payment  Account.  The Paying Agent shall  establish  and
maintain an Eligible Account entitled "Wachovia Bank, National  Association,  as
Paying Agent,  for the benefit of the  Securityholders,  the Indenture  Trustee,
Certificate Paying Agent and the Enhancer,  pursuant to the Indenture,  dated as
of July 2, 2003,  among  Wachovia Asset  Securitization,  Inc.  2003-HE2  Trust,
Wachovia Bank,  National  Association  and U.S. Bank National  Association  (the
"Note Payment  Account").  On each Payment Date,  amounts on deposit in the Note
Payment  Account shall be  distributed  by the Paying Agent in  accordance  with
Section 3.05  of the  Indenture.  The  Paying  Agent  shall  invest or cause the
institution  maintaining the Note Payment Account to invest the funds therein in
Permitted  Investments  designated  in the  name  of  the  Paying  Agent,  which
investments  shall  mature not later than the Business  Day next  preceding  the
Payment  Date  next  following  the  date of such  investment  (except  that any
investment in the institution  with which the Note Payment Account is maintained
may mature or be payable on demand on such Payment Date).  In addition,  no such
Permitted  Investment shall be purchased at a price in excess of par. All income
and gain  realized  from any such  investment  shall be for the  benefit  of the
Servicer  and shall be  subject  to its  withdrawal  or order from time to time,
except that an amount equal to one day's interest on any such  investment  shall
be for the  benefit of the Paying  Agent.  The amount of any losses  incurred in
respect of any such  investments  shall be deposited in the Note Payment Account
by the  Servicer  and the  Paying  Agent out of their own funds  immediately  as
realized and shall be  allocated  between the Servicer and the Paying Agent on a
pro rata  basis,  such that the  percentage  of any such loss  allocated  to the
Paying Agent shall equal a fraction,  the  numerator of which equals one (1) and
the denominator of which equals the number of days the funds in the Note Payment
Account were  invested in such  investment.  Subject to  Section 8.02(b)  of the
Indenture,  and except as provided in this Section 5.01,  the Paying Agent shall
not be liable for  investment  losses on funds on  deposit  in the Note  Payment
Account.

                                   ARTICLE VI

                                  The Servicer

     Section 6.01  Liability of the  Servicer.  The Servicer  shall be liable in
accordance herewith only to the extent of the obligations  specifically  imposed
upon and undertaken by the Servicer herein.

     Section 6.02 Merger or  Consolidation  of, or Assumption of the Obligations
of, the  Servicer.  Any  corporation  into which the  Servicer  may be merged or
converted or with which it

                                       27

<PAGE>

may be consolidated, or any corporation resulting from any merger, conversion or
consolidation  to  which  the  Servicer  shall be a  party,  or any  corporation
succeeding  to the  business  of the  Servicer,  shall be the  successor  of the
Servicer hereunder,  without the execution or filing of any paper or any further
act on the part of any of the parties  hereto,  anything  herein to the contrary
notwithstanding.

     The Servicer may assign its rights and delegate its duties and  obligations
under this  Agreement,  provided that the Person  accepting  such  assignment or
delegation  shall be a Person qualified to service mortgage loans, is reasonably
satisfactory to the Enhancer (provided, however, that such consent to assignment
may not be unreasonably  withheld), is willing to service the Mortgage Loans and
executes and delivers to the Issuer (with a copy to the  Enhancer) an agreement,
in form and substance reasonably  satisfactory to the Enhancer, that contains an
assumption by such Person of the due and punctual  performance and observance of
each  covenant and  condition to be performed or observed by the Servicer  under
this Agreement;  provided,  further, that no Rating Event will occur as a result
of such  assignment and delegation (as evidenced by a letter to such effect from
each  Rating  Agency) if  determined  without  regard to the  Policy;  provided,
further,  that the Owner  Trustee,  the Paying Agent and the  Indenture  Trustee
shall  receive an Opinion of  Counsel  to the  effect  that such  assignment  or
delegation  will not cause the  Issuer to be  treated  as an  association  (or a
publicly-traded  partnership)  taxable as a corporation  for federal  income tax
purposes.

     Section 6.03  Limitation  on Liability of the Servicer and Others.  Neither
the Servicer nor any of the  directors or officers or employees or agents of the
Servicer  shall be under any  liability to the Issuer,  the Owner  Trustee,  the
Paying Agent, the Indenture Trustee or the  Securityholders for any action taken
or for  refraining  from the taking of any action in good faith pursuant to this
Agreement; provided, however, that this provision shall not protect the Servicer
or any such Person  against any  liability  that would  otherwise  be imposed by
reason  of its  willful  misfeasance,  bad  faith  or  gross  negligence  in the
performance  of its duties  hereunder or by reason of its reckless  disregard of
its obligations and duties  hereunder.  The Servicer and any director or officer
or employee or agent of the  Servicer  may rely in good faith on any document of
any kind prima facie  properly  executed and submitted by any Person  respecting
any matters arising hereunder. The Servicer and any director,  officer, employee
or agent of the Servicer  shall be  indemnified  by the Issuer and held harmless
against any loss,  liability or expense  incurred in  connection  with any legal
action relating to this Agreement or the  Securities,  including any amount paid
to the Owner  Trustee,  the Paying Agent or the  Indenture  Trustee  pursuant to
Section 6.06(b),  other  than any loss,  liability  or  expense  related  to any
specific Mortgage Loan or Mortgage Loans (except as any such loss,  liability or
expense  shall be otherwise  reimbursable  pursuant to this  Agreement)  and any
loss,  liability  or  expense  incurred  by  reason  of the  Servicer's  willful
misfeasance,  bad faith or gross  negligence  in the  performance  of its duties
hereunder or by reason of its reckless  disregard of its  obligations and duties
hereunder.  The  Servicer  shall  not be under  any  obligation  to  appear  in,
prosecute  or defend any legal  action that is not  incidental  to its duties to
service the Mortgage Loans in accordance  with this  Agreement,  and that in its
opinion may involve it in any expense or liability;  provided, however, that the
Servicer may in its sole  discretion  undertake any such action that it may deem
necessary or desirable  in respect of this  Agreement,  the rights and duties of
the parties hereto and the interests of the Securityholders.  In such event, the
reasonable  legal expenses and costs of such action and any liability  resulting
therefrom  shall be  expenses,  costs and  liabilities  of the  Issuer,  and the

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<PAGE>

Servicer shall be entitled to be reimbursed  therefor.  The Servicer's  right to
indemnity  or  reimbursement  pursuant to this  Section  6.03 shall  survive any
resignation or termination of the Servicer pursuant to Section 6.04 or 7.01 with
respect to any losses,  expenses,  costs or  liabilities  arising  prior to such
resignation or  termination  (or arising from events that occurred prior to such
resignation or termination).

     Section  6.04  Servicer  Not  to  Resign.  Subject  to  the  provisions  of
Section 6.02,  the  Servicer  shall not resign from the  obligations  and duties
hereby imposed on it except (a) upon  determination  that the performance of its
obligations or duties hereunder are no longer  permissible  under applicable law
or are in  material  conflict  by  reason  of  applicable  law  with  any  other
activities  carried  on by it or  its  subsidiaries  or  Affiliates,  the  other
activities of the Servicer so causing such a conflict being of a type and nature
carried on by the Servicer or its subsidiaries or Affiliates at the date of this
Agreement or (b) upon satisfaction of the following conditions: (i) the Servicer
shall have proposed a successor servicer to the Issuer and the Indenture Trustee
in writing and such proposed successor servicer is reasonably  acceptable to the
Issuer,  the Indenture  Trustee and the Enhancer;  (ii) each Rating Agency shall
have  delivered a letter to the Issuer,  the Enhancer and the Indenture  Trustee
prior to the  appointment  of the successor  servicer  stating that the proposed
appointment  of such successor  servicer as Servicer  hereunder will not cause a
Rating  Event,  if  determined  without  regard to the  Policy;  and (iii)  such
proposed  successor  servicer  is  reasonably  acceptable  to the  Enhancer,  as
evidenced  by a  letter  to the  Issuer  and the  Indenture  Trustee;  provided,
however,  that no such  resignation by the Servicer shall become effective until
such successor servicer or, in the case of (a) above, the Indenture Trustee,  as
pledgee  of  the   Mortgage   Loans,   shall   have   assumed   the   Servicer's
responsibilities and obligations  hereunder or the Indenture Trustee, as pledgee
of the Mortgage Loans,  shall have designated a successor servicer in accordance
with  Section 7.02.  Any such  resignation  shall not  relieve  the  Servicer of
responsibility for any of the obligations specified in Sections 7.01 and 7.02 as
obligations  that survive the  resignation or  termination of the Servicer.  Any
such determination permitting the resignation of the Servicer shall be evidenced
by an Opinion of Counsel to such effect  delivered to the Indenture  Trustee and
the Enhancer.

     Section 6.05 Delegation of Duties. In the ordinary course of business,  the
Servicer at any time may  delegate  any of its duties  hereunder  to any Person,
including  any  of its  Affiliates,  that  agrees  to  conduct  such  duties  in
accordance with standards  comparable to those with which the Servicer  complies
pursuant to Section 3.01.  Such delegation shall not relieve the Servicer of its
liabilities  and  responsibilities  with  respect  to such  duties and shall not
constitute a resignation within the meaning of Section 6.04.

     Section 6.06 Payment of Indenture  Trustee's,  the Paying Agent's and Owner
Trustee's Fees and Expenses; Indemnification.

     (a) After the Closing Date, the Servicer covenants and agrees to pay to the
Owner Trustee,  the Paying Agent,  the Note Registrar,  the  Certificate  Paying
Agent, the Certificate  Registrar,  the Indenture  Trustee and any co-trustee of
the  Indenture  Trustee or the Owner  Trustee  from time to time,  and the Owner
Trustee,  the Note  Registrar,  the  Certificate  Paying Agent,  the Certificate
Registrar, the Paying Agent, the Indenture Trustee and any such co-trustee shall
be entitled to,  reasonable  compensation  for all services  rendered by each of
them in the execution of the trusts  created  under the Trust  Agreement and the
Indenture and in the exercise and

                                       29

<PAGE>

performance  of any of the powers and duties  under the Trust  Agreement  or the
Indenture,  as the case may be, of the Owner Trustee,  the Note  Registrar,  the
Certificate  Paying Agent,  the  Certificate  Registrar,  the Paying Agent,  the
Indenture Trustee and any co-trustee, and the Servicer will pay or reimburse the
Note Registrar,  the Certificate  Paying Agent, the Certificate  Registrar,  the
Paying Agent,  the  Indenture  Trustee and any  co-trustee  upon request for all
reasonable  expenses,  disbursements  and advances  incurred or made by the Note
Registrar,  the Certificate Paying Agent, the Certificate Registrar,  the Paying
Agent,  the Indenture  Trustee or any  co-trustee in accordance  with any of the
provisions of this  Agreement,  the Indenture,  the Trust  Agreement,  any other
Basic  Document or the  Auction  Agent  Agreement  (which  payment  shall not be
limited  by any law in regards  to the  compensation  of a trustee of an express
trust)  except any such expense,  disbursement  or advance as may arise from its
negligence, willful misfeasance or bad faith. In addition, the Indenture Trustee
shall be entitled to be reimbursed  from the Servicer for all  reasonable  costs
associated with the transfer of servicing from the predecessor servicer pursuant
to Section 7.02 hereunder,  including,  without limitation, any reasonable costs
or expenses  associated with the complete transfer of all servicing data and the
completion, correction or manipulation of such servicing data as may be required
by the  Indenture  Trustee  to  correct  any  errors or  insufficiencies  in the
servicing  data or  otherwise  to enable  the  Indenture  Trustee  or  successor
Servicer to service the Mortgage Loans properly and effectively.

     (b) The Servicer  agrees to indemnify  the  Indenture  Trustee,  the Paying
Agent,  the Note  Registrar,  the  Certificate  Paying  Agent,  the  Certificate
Registrar and the Owner Trustee for, and to hold the Indenture  Trustee (and any
Responsible  Officer  thereof),  the  Paying  Agent,  the  Note  Registrar,  the
Certificate  Paying Agent, the Certificate  Registrar and the Owner Trustee,  as
the case may be,  harmless  against,  any loss,  liability  or expense  incurred
without negligence, bad faith or willful misconduct on the part of the Indenture
Trustee, the Paying Agent, the Note Registrar, the Certificate Paying Agent, the
Certificate  Registrar or the Owner Trustee, as the case may be, arising out of,
or in connection with, the acceptance and  administration  of the Issuer and the
assets thereof,  including the costs and expenses  (including  reasonable  legal
fees and  expenses) of defending the Indenture  Trustee,  the Paying Agent,  the
Note Registrar,  the Certificate Paying Agent, the Certificate  Registrar or the
Owner  Trustee,  as the case may be,  against any claim in  connection  with the
exercise or  performance of any of its powers or duties under any Basic Document
or the Auction Agent Agreement; provided, however, that:

          (i) with respect to any such claim, the Indenture Trustee,  the Paying
Agent,  the Note  Registrar,  the  Certificate  Paying  Agent,  the  Certificate
Registrar  or Owner  Trustee,  as the case may be, shall have given the Servicer
written notice thereof promptly after the Indenture  Trustee,  the Paying Agent,
the Note Registrar,  the Certificate Paying Agent, the Certificate  Registrar or
Owner Trustee, as the case may be, shall have actual knowledge thereof;

          (ii) while maintaining  control over its own defense,  the Issuer, the
Indenture Trustee, the Paying Agent, the Note Registrar,  the Certificate Paying
Agent,  the  Certificate  Registrar or Owner Trustee,  as the case may be, shall
cooperate and consult fully with the Servicer in preparing such defense; and

          (iii) notwithstanding  anything in this Agreement to the contrary, the
Servicer  shall  not be liable  for  settlement  of any  claim by the  Indenture
Trustee, the Paying Agent, the

                                       30

<PAGE>

Note Registrar,  the Certificate Paying Agent, the Certificate  Registrar or the
Owner Trustee, as the case may be, entered into without the prior consent of the
Servicer.

     No  termination  of this  Agreement or resignation or removal of the Paying
Agent,  the Note  Registrar,  the  Certificate  Paying  Agent,  the  Certificate
Registrar or the Indenture Trustee shall affect the obligations  created by this
Section 6.06  of the Servicer to indemnify  the  Indenture  Trustee,  the Paying
Agent,  the Note  Registrar,  the  Certificate  Paying  Agent,  the  Certificate
Registrar and the Owner Trustee under the conditions and to the extent set forth
herein.

     Notwithstanding the foregoing, the indemnification provided by the Servicer
in this  Section 6.06(b)  shall not pertain to any loss, liability or expense of
the Indenture  Trustee,  the Paying Agent,  the Note Registrar,  the Certificate
Paying Agent,  the  Certificate  Registrar or the Owner  Trustee,  including the
costs and expenses of defending itself against any claim, incurred in connection
with any actions taken by the  Indenture  Trustee,  the Paying  Agent,  the Note
Registrar,  the Certificate Paying Agent, the Certificate Registrar or the Owner
Trustee at the written  direction of the Noteholders or  Certificateholders,  as
the case may be, pursuant to the terms of this Agreement.

                                  ARTICLE VII

                                    Default

     Section 7.01 Servicing Default.

     (a) If any one of the following events (each, a "Servicing  Default") shall
occur and be continuing:

          (i) any  failure by the  Servicer  to deposit in any of the  Custodial
Account,  the Note Payment  Account,  either Funding Account or the Distribution
Account any deposit  required to be made under the terms of this  Agreement that
continues  unremedied  for a period of three (3) Business Days after the earlier
of (A) the date upon which written  notice of such failure shall have been given
to the Servicer by the Issuer or the Indenture  Trustee or to the Servicer,  the
Issuer and the Indenture Trustee by the Enhancer and (B) the first date on which
the Servicer has actual knowledge of such failure;  (ii) any failure on the part
of the Servicer duly to observe or perform any other  covenants or agreements of
the  Servicer  set  forth  in this  Agreement,  which  failure,  in  each  case,
materially and adversely affects the interests of the Securityholders, and which
failure  continues  unremedied  for a period of 45 days after the earlier of (A)
the date on which  written  notice  of such  failure,  requiring  the same to be
remedied, and stating that such notice is a "Notice of Default" hereunder, shall
have been given to the Servicer by the Issuer or the Indenture Trustee or to the
Servicer, the Issuer and the Indenture Trustee by the Enhancer and (B) the first
date on which the Servicer has actual knowledge of such failure;

          (iii) the entry  against the  Servicer of a decree or order by a court
or agency or supervisory  authority having  jurisdiction in the premises for the
appointment   of  a  trustee,   conservator,   receiver  or  liquidator  in  any
conservatorship,  receivership,  readjustment of debt,

                                       31

<PAGE>

marshalling of assets and liabilities or similar proceedings, or for the winding
up or liquidation of its affairs; or

          (iv) the  consent by the  Servicer  to the  appointment  of a trustee,
conservator,   receiver  or  liquidator  in  any  insolvency,   conservatorship,
receivership,  readjustment  of debt,  marshalling of assets and  liabilities or
similar  proceedings  of or relating to the Servicer or of or relating to all or
substantially  all of its property;  or the  commencement of an involuntary case
relating  to the  Servicer  under any  applicable  federal or state  bankruptcy,
insolvency  or other  similar law and such case shall  either be consented to by
the Servicer or shall not have been dismissed or stayed within sixty (60) day of
its  commencement;  or the Servicer  shall admit in writing its inability to pay
its debts generally as they become due, file a petition to take advantage of any
applicable  insolvency or  reorganization  statute,  make an assignment  for the
benefit of its creditors or voluntarily suspend payment of its obligations;

then, and in every such case, so long as a Servicing Default shall not have been
remedied by the  Servicer,  either the  Depositor,  the  Enhancer (so long as no
Enhancer Default exists),  or the Indenture Trustee, at the written direction of
the  holders of at least 51% of the  Outstanding  Note  Balance  (if an Enhancer
Default exists) by notice then given in writing to the Servicer,  the Issuer and
the Indenture  Trustee,  may terminate all of the rights and  obligations of the
Servicer  as  servicer  under  this  Agreement  other  than its right to receive
servicing  compensation  and  reimbursement  for  servicing  the Mortgage  Loans
hereunder  during  any  period  prior to the date of such  termination,  and the
Issuer,  the Enhancer or the Indenture  Trustee (with the written consent of the
Enhancer),  may exercise any and all other remedies  available at law or equity.
The Servicer shall immediately notify the Indenture Trustee, the Issuer and each
Rating Agency,  the Enhancer and the Issuer in writing of any Servicing  Default
as to which it has actual knowledge.  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  Securities  or the  Mortgage  Loans or
otherwise,  shall pass to and be  vested,  subject to  Section 7.02  hereof,  as
pledgee of the Mortgage Loans, in the Indenture  Trustee,  pursuant to and under
this  Section 7.01;  and, without  limitation,  the Indenture  Trustee is hereby
authorized and empowered to execute and deliver,  on behalf of the Servicer,  as
attorney-in-fact or otherwise, any and all documents and other instruments,  and
to do or accomplish all other acts or things  necessary or appropriate to effect
the purposes of such notice of termination, whether to complete the transfer and
endorsement  of each Mortgage  Loan and related  documents,  or  otherwise.  The
Servicer  agrees to  cooperate  with the  Issuer,  the  Enhancer  and  Indenture
Trustee,   as  the  case  may  be,  in   effecting   the   termination   of  the
responsibilities  and  rights  of the  Servicer  hereunder,  including,  without
limitation,  the transfer to the Indenture Trustee for the  administration by it
of all cash  amounts  relating to the  Mortgage  Loans that shall at the time be
held by the Servicer and to be deposited by it in the Custodial Account, or that
have been  deposited  by the  Servicer in the  Custodial  Account or  thereafter
received by the  Servicer  with respect to the Mortgage  Loans.  All  reasonable
costs and expenses (including,  but not limited to, attorneys' fees) incurred in
connection  with amending this Agreement to reflect such  succession as Servicer
pursuant to this Section 7.01  shall be paid by the predecessor  Servicer (or if
the predecessor  Servicer is the Indenture  Trustee,  the initial Servicer) upon
presentation of reasonable documentation of such costs and expenses.

     (b)  Notwithstanding  any  termination  of the  activities  of the Servicer
hereunder, the Servicer shall be entitled to receive, out of any late collection
of a payment on a Mortgage Loan

                                       32

<PAGE>

that  was  due  prior  to the  notice  terminating  the  Servicer's  rights  and
obligations  hereunder and received after such notice, that portion to which the
Servicer would have been entitled pursuant to Sections 3.03 and 3.09, as well as
its  Servicing  Fee in respect  thereof,  and any other  amounts  payable to the
Servicer  hereunder the  entitlement to which arose prior to the  termination of
its activities hereunder.

     Notwithstanding  the foregoing,  a delay in or failure of performance under
clause (i) or (ii) of the definition of Servicing Default,  after the applicable
grace periods  specified  therein,  shall not constitute a Servicing  Default if
such delay or failure  could not be  prevented  by the  exercise  of  reasonable
diligence  by the Servicer and such delay or failure was caused by an act of God
or the public  enemy,  acts of  declared or  undeclared  war,  public  disorder,
rebellion or  sabotage,  epidemics,  landslides,  lightning,  fire,  hurricanes,
earthquakes,  floods or similar causes. The preceding sentence shall not relieve
the Servicer from using reasonable efforts to perform its respective obligations
in a timely manner in accordance with the terms of this Agreement.  The Servicer
shall provide the  Indenture  Trustee,  the Paying  Agent,  the Enhancer and the
Securityholders with written notice of any such failure or delay by it, together
with a description  of its efforts to so perform its  obligations.  The Servicer
shall immediately notify the Indenture  Trustee,  the Paying Agent, the Enhancer
and the Issuer in writing of any Servicing Default.

     (c) If the Servicer Termination Triggers shall occur and be continuing with
respect to a Payment Date,  then in each and every such case,  and so long as no
Enhancer   Default  exists,   the  Enhancer  may  send  written  notice  to  the
Securityholders  of its intention to remove the Servicer and appoint a successor
Servicer and the date on which such removal will take place; provided,  however,
that such date shall be at least 30 days from the date of such  notice.  None of
the Indenture Trustee,  the Paying Agent or the  Securityholders  shall have the
right to initiate removal of the Servicer if a Servicer  Termination Trigger has
occurred.

     Section 7.02 Indenture Trustee to Act; Appointment of Successor.

     (a) On and after the time the  Servicer  receives  a notice of  termination
pursuant  to  Section 7.01  or  sends a notice  pursuant  to  Section 6.04,  the
Indenture Trustee as pledgee of the Mortgage Loans shall itself become, or shall
appoint an affiliate of the  Indenture  Trustee to become,  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  immediately  assume
all of the  obligations of the Servicer to make advances on Mortgage Loans under
Section 3.03(b)  and will be subject to all other  responsibilities,  duties and
liabilities  relating thereto placed on the Servicer by the terms and provisions
hereof as soon as  practicable,  but in no event  later  than 90 days  after the
Indenture Trustee becomes  successor  servicer.  During such 90 day period,  the
Indenture  Trustee,  with the written  consent of the Enhancer,  may require the
Servicer being terminated to continue to perform such servicing responsibilities
(other than making advances on the Mortgage Loans under  Section 3.03(b)) as the
Indenture  Trustee  deems  appropriate.   In  such  event,  the  Servicer  being
terminated  shall  provide such  services as directed by the  Indenture  Trustee
until the earliest of the date the Indenture  Trustee  notifies such Servicer to
discontinue  providing such services,  the date on which a successor servicer or
the Indenture Trustee has assumed all  responsibilities,  duties and liabilities
of the Servicer  hereunder or the expiration of the 90 day period.  The Servicer
shall be entitled to the Servicing Fee hereunder for any period during which the
Servicer is  obligated  to provide  such  services as if no  termination  of the

                                       33

<PAGE>

Servicer had occurred. Nothing in this Agreement or in the Trust Agreement shall
be  construed to permit or require the  Indenture  Trustee to (i) succeed to the
responsibilities, duties and liabilities of the initial Servicer in its capacity
as Seller under the Purchase  Agreement,  (ii) be responsible or accountable for
any act or  omission  of the  Servicer  prior to the  issuance  of a  notice  of
termination  hereunder,  (iii) require or obligate the Indenture Trustee, in its
capacity as  successor  Servicer,  to purchase,  repurchase  or  substitute  any
Mortgage Loan,  (iv) fund any  Additional  Balances with respect to any Mortgage
Loan,  (v) fund any losses on any  Permitted  Investment  directed  by any other
Servicer,  or (vi) be responsible for the  representations and warranties of the
predecessor Servicer. As compensation  therefor,  the Indenture Trustee shall be
entitled  to such  compensation  as the  Servicer  would have been  entitled  to
hereunder if no such notice of termination had been given.  Notwithstanding  the
foregoing,  if the  Indenture  Trustee  is  (x)  unwilling  to act as  successor
Servicer itself or to appoint an affiliate to become successor Servicer,  or (y)
legally unable so to act, the Indenture Trustee as pledgee of the Mortgage Loans
may (in the  situation  described  in  clause  (x)) or shall  (in the  situation
described in clause (y))  appoint or petition a court of competent  jurisdiction
to appoint any established housing and home finance  institution,  bank or other
mortgage loan servicer  having a net worth of not less than  $10,000,000  as the
successor to the Servicer  hereunder in the assumption of all or any part of the
responsibilities,  duties or  liabilities of the Servicer  hereunder;  provided,
however,  that any such successor  Servicer shall be acceptable to the Enhancer,
as evidenced by the Enhancer's prior written consent, which consent shall not be
unreasonably  withheld.  Pending  appointment  of a  successor  to the  Servicer
hereunder, unless the Indenture Trustee is prohibited by law from so acting, the
Indenture  Trustee  itself  shall act or  appoint  an  affiliate  to act in such
capacity as provided above. In connection with such  appointment and assumption,
the  successor  shall be  entitled  to receive  compensation  out of payments on
Mortgage  Loans in an amount equal to the  compensation  that the Servicer would
otherwise have received pursuant to Section 3.11 (or such other  compensation as
the Indenture  Trustee and such  successor  shall agree).  The  appointment of a
successor  Servicer shall not affect any liability of the  predecessor  Servicer
that may have arisen under this Agreement  prior to its  termination as Servicer
(including the  obligation to purchase  Mortgage Loans pursuant to Section 3.01,
to pay any deductible  under an insurance  policy pursuant to Section 3.05 or to
indemnify  the  Indenture  Trustee  pursuant  to  Section  6.06),  nor shall any
successor  Servicer  (including the Indenture Trustee) be liable for any acts or
omissions of the predecessor  Servicer or for any breach by such Servicer of any
of its representations or warranties contained herein or in any related document
or agreement.  The Indenture  Trustee and such successor shall take such action,
consistent  with this  Agreement  and the  requirements  (including  any  notice
requirements)  of applicable  law, as shall be necessary to effectuate  any such
succession.  Notwithstanding  the  foregoing,  the  Indenture  Trustee,  in  its
capacity  as  successor  Servicer,  shall  not be  responsible  for the  lack of
information and/or documents that it cannot obtain through reasonable efforts or
for failing to take any action that the Indenture Trustee is legally  prohibited
from taking by applicable law.

     (b) Any  successor,  including  the Indenture  Trustee,  to the Servicer as
servicer  shall  during  its  term as  Servicer  (i)  continue  to  service  and
administer  the  Mortgage  Loans for the  benefit of the  Securityholders,  (ii)
maintain  in force a  policy  or  policies  of  insurance  covering  errors  and
omissions in the  performance  of its  obligations  as Servicer  hereunder and a
fidelity  bond in  respect  of its  officers,  employees  and agents to the same
extent as the  Servicer is so required  pursuant  to  Section 3.13  and (iii) be
bound by the terms of the Insurance Agreement.

                                       34

<PAGE>

     (c) Any successor Servicer,  including the Indenture Trustee,  shall not be
deemed in default or to have  breached its duties  hereunder if the  predecessor
Servicer shall fail to deliver any required deposit to the Custodial  Account or
otherwise   cooperate  with  any  required   servicing  transfer  or  succession
hereunder.

     (d) All reasonable costs and expenses (including  attorneys' fees) incurred
in connection with the transfer of Mortgage Files and the servicing  duties to a
successor servicer hereunder shall be paid by the related predecessor servicer.

     Section 7.03  Notification to  Securityholders.  Upon any termination of or
appointment  of a successor  to the  Servicer  pursuant  to this  Article VII or
Section 6.04,  the Indenture Trustee shall give prompt written notice thereof to
the Securityholders, the Enhancer, the Issuer and each Rating Agency.

                                  ARTICLE VIII

                            Miscellaneous Provisions

     Section 8.01 Amendment.  This Agreement may be amended from time to time by
the parties hereto, but only by written instrument signed by the parties hereto;
provided, however, that any such amendment shall be accompanied by a letter from
each Rating Agency to the effect that such amendment will not result in a Rating
Event if determined without regard to the Policy;  provided,  further,  that the
Enhancer, the Paying Agent and the Indenture Trustee shall consent thereto.

     Section  8.02   Exhibits.   The  exhibits  to  this  Agreement  are  hereby
incorporated and made a part hereof and are an integral part of this Agreement.

     Section  8.03  GOVERNING  LAW.  THIS  AGREEMENT  SHALL BE  GOVERNED  BY AND
CONSTRUED  IN  ACCORDANCE  WITH  THE  LAWS OF THE  STATE  OF NEW  YORK,  WITHOUT
REFERENCE TO ITS CONFLICTS OF LAW  PROVISIONS  (OTHER THAN SECTION 5-1401 OF THE
GENERAL  OBLIGATIONS  LAW),  AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES  OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 8.04 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 certified mail,  return receipt  requested,  to (a) in
the case of the Servicer,  One Wachovia  Center,  18th Floor,  Charlotte,  North
Carolina 28288-0572,  Attention:  David Mason, Re: Wachovia Asset Securitization
2003-HE2  Trust,  Facsimile:  (704)  383-3878,  (b) in the case of the Enhancer,
Financial Guaranty Insurance Company, 125 Park Avenue, New York, New York 10017,
Attention:  Research and Risk Management  (Wachovia Asset  Securitization,  Inc.
2003-HE2  Trust),  (c) in the case of Moody's,  Home  Mortgage  Loan  Monitoring
Group, 4th Floor, 99 Church Street, New York, New York 10001, (d) in the case of
Standard  & Poor's,  55 Water  Street,  New  York,  New York  10004,  Attention:
Residential  Mortgage  Surveillance Group, (e) in the case of the Owner Trustee,
Wilmington  Trust  Company,  Rodney  Square  North,  1100 North  Market  Street,
Wilmington,  Delaware 19890-0001,  (f) in the case of the Issuer, Wachovia Asset

                                       35

<PAGE>

Securitization,  Inc.  2003-HE2 Trust,  c/o the Owner Trustee at the address set
forth in clause  (e) above,  (g) in the case of the  Indenture  Trustee,  at the
Corporate  Trust  Office of the  Indenture  Trustee,  and (h) in the case of the
Paying  Agent,  at the  Corporate  Trust  Office of the Paying  Agent;  or, with
respect to each of the  foregoing  Persons,  at such  other  address as shall be
designated by such Person in a written  notice to the other  foregoing  Persons.
Any notice required or permitted to be mailed to a Securityholder shall be given
by first class mail, postage prepaid,  at the address of such  Securityholder as
shown in the Note  Register  or  Certificate  Register,  as the case may be. Any
notice  so  mailed  within  the  time  prescribed  in this  Agreement  shall  be
conclusively  presumed  to have  been duly  given,  whether  or not the  related
Securityholder receives such notice. Any notice or other document required to be
delivered or mailed by the Indenture Trustee to any Rating Agency shall be given
on  a  reasonable   efforts   basis  and  only  as  a  matter  of  courtesy  and
accommodation,  and the Indenture Trustee shall have no liability for failure to
deliver any such notice or document to any Rating Agency.

     Section  8.05  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 the Securities or
the rights of the Securityholders.

     Section 8.06  Protection of  Confidential  Information.  The Servicer shall
keep confidential and shall not divulge to any party any information  pertaining
to the Mortgage Loans or any Mortgagor  thereunder,  except as required pursuant
to this Agreement and except to the extent that it is necessary and  appropriate
for the  Servicer  to do so in working  with  legal  counsel,  auditors,  taxing
authorities,  regulatory  authorities  or  other  governmental  agencies  or  in
accordance with the Collection Policy.

     Section 8.07 Third-Party  Beneficiaries.  This Agreement shall inure to the
benefit of and be binding  upon the parties  hereto,  the  Securityholders,  the
Enhancer,  the Owner  Trustee  and their  respective  successors  and  permitted
assigns.  Except as otherwise provided in this Agreement,  no other Person shall
have  any  right or  obligation  hereunder.  The  Enhancer  shall be an  express
third-party beneficiary of this Agreement.

     Section 8.08 Counterparts. This instrument may be executed in any number of
counterparts,  each of which so executed shall be deemed to be an original,  but
all such counterparts shall together constitute but one and the same instrument.

     Section  8.09 Effect of  Headings  and Table of  Contents.  The Article and
Section headings  herein and the Table of Contents are for convenience  only and
shall not affect the construction hereof.

     Section 8.10  Termination  upon Purchase by the Servicer or  Liquidation of
All Mortgage Loans; Partial Redemption.

     (a) The respective  obligations and  responsibilities of the Servicer,  the
Issuer,  the  Paying  Agent  and the  Indenture  Trustee  created  hereby  shall
terminate upon the last action

                                       36

<PAGE>

required to be taken by the Issuer  pursuant to the Trust  Agreement  and by the
Indenture  Trustee and the Paying Agent pursuant to the Indenture  following the
earlier of:

          (i) the date on or before which the  Indenture or the Trust  Agreement
is terminated, or

          (ii) the  purchase  by the  Servicer  from the Issuer of all  Mortgage
Loans and REO Property in accordance with Section 8.10(b).

     (b) The  Servicer  shall have the right to purchase  from the Issuer all of
the Mortgage  Loans and related REO Property if the Note Balance of the Notes as
of any Payment  Date is less than 10% of the Note Balance of the Notes as of the
Closing Date, (provided that a draw on the Policy would not occur as a result of
such  purchase,  and  provided  further  that the  purchase  price will  provide
sufficient  funds to pay the  outstanding  Note  Balance  and accrued and unpaid
interest  on the  Notes to the  Payment  Date on which  such  amounts  are to be
distributed to the  Securityholders),  at a price equal to 100% of the aggregate
unpaid Principal Balance of all such remaining  Mortgage Loans, plus accrued and
unpaid interest  thereon at the weighted average of the Loan Rates thereon up to
the date  preceding the Payment Date on which such amounts are to be distributed
to the Securityholders  (and in the case of REO Property,  the fair market value
of the REO  Property),  plus any amounts due and owing to the Enhancer under the
Insurance  Agreement  related to the Mortgage Loans or the Notes (and any unpaid
Servicing  Fee relating to the Mortgage  Loans shall be deemed to have been paid
at such time),  plus any Interest  Shortfall  and  interest  owed thereon to the
Noteholders.  The  purchase  price paid by the  Servicer  shall also include any
amounts owed by the Seller pursuant to Section 3.01(d) of the Purchase Agreement
in respect of any  liability,  penalty or expense that resulted from a breach of
the  representation and warranty set forth in Section  3.01(b)(xi),  that remain
unpaid on the date of such purchase.

     The Servicer shall send written notice to the Indenture Trustee, the Paying
Agent and the  Enhancer of its intent to exercise  its right to purchase  any of
the Mortgage Loans pursuant to this Section 8.10(b).

     If such right is exercised by the Servicer,  the Servicer shall deposit the
amount calculated pursuant to this Section 8.08(b) with the Indenture Trustee or
the Paying Agent pursuant to Section 4.10 of the Indenture and, upon the receipt
of such deposit, the Indenture Trustee shall release to the Servicer,  the files
pertaining to the Mortgage Loans being purchased.  The Servicer, at its expense,
shall prepare and deliver to the Indenture  Trustee for  execution,  at the time
the  related  Mortgage  Loans are to be released  to the  Servicer,  appropriate
documents  assigning each such Mortgage Loans from the Indenture  Trustee or the
Issuer to the Servicer or the appropriate party.

     Section 8.11 Certain Matters Affecting the Indenture Trustee and the Paying
Agent. For all purposes of this Agreement,  in the performance of any of each of
their duties or in the exercise of any of either of their powers hereunder,  the
Indenture  Trustee and the Paying  Agent shall be subject to and entitled to the
benefits of Article VI of the Indenture.

     Section 8.12 Owner Trustee,  Paying Agent and Indenture  Trustee Not Liable
for Related  Documents.  The  recitals  contained  herein  shall be taken as the
statements  of the

                                       37

<PAGE>

Servicer,  and the Owner  Trustee,  the Paying Agent and the  Indenture  Trustee
assume no responsibility  for the correctness  thereof.  The Owner Trustee,  the
Paying  Agent  and  the  Indenture  Trustee  make no  representations  as to the
validity or  sufficiency  of this  Agreement,  of any Basic  Document or Related
Document, or of the Certificates (other than the signatures of the Owner Trustee
and the Indenture  Trustee on the Certificates) or the Notes. The Owner Trustee,
the  Paying  Agent  and  the  Indenture  Trustee  shall  at  no  time  have  any
responsibility  or liability with respect to the sufficiency of the Trust Estate
or its ability to generate the payments to be distributed to  Certificateholders
under the Trust Agreement or the Noteholders under the Indenture,  including the
compliance  by the  Depositor,  the Seller or the Servicer  with any warranty or
representation  made  under  any  Basic  Document  or the  accuracy  of any such
warranty or representation, or any action of any person taken in the name of the
Owner Trustee, the Paying Agent or the Indenture Trustee.

                                       38

<PAGE>

     IN WITNESS WHEREOF, the Servicer, the Issuer and the Indenture Trustee have
caused  this  Agreement  to be duly  executed  by their  respective  officers or
representatives all as of the day and year first above written.

                                         WACHOVIA BANK, NATIONAL ASSOCIATION,
                                          as Servicer

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

                                         WACHOVIA ASSET SECURITIZATION, INC.
                                          2003-HE2 TRUST, as Issuer

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

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

                                         WACHOVIA BANK, NATIONAL ASSOCIATION,
                                          as Paying Agent

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

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

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

                                       39

<PAGE>

                                   EXHIBIT A

                             MORTGAGE LOAN SCHEDULE

                                      A-1

<PAGE>

                                   EXHIBIT B

                               COLLECTION POLICY

                                [See attachment]

                                      B-1

<PAGE>

                                   EXHIBIT C

                           LIMITED POWER OF ATTORNEY

                        KNOW ALL MEN BY THESE PREMISES:

     That U.S. Bank National  Association,  as indenture trustee (the "Indenture
Trustee"), under the indenture dated as of July 2, 2003 (the "Indenture"), among
Wachovia Asset  Securitization,  Inc. 2003-HE2 Trust, as issuer,  Wachovia Bank,
National  Association,  as Paying Agent, and the Indenture  Trustee,  a national
bank, and having its principal  office  located at East Fifth Street,  St. Paul,
Minnesota 55101, Attn: Client Manager - WASI 2003-2, hath made,  constituted and
appointed,  and does by these  presents make,  constitute  and appoint  Wachovia
Bank,  National  Association,  a  national  banking  association  organized  and
existing  under the laws of the United  States of  America,  its true and lawful
Attorney-in-Fact,  with full power and authority to sign, execute,  acknowledge,
deliver,  file for  record,  and record any  instrument  on its  behalf,  and to
perform such other act or acts as may be customarily  and  reasonably  necessary
and appropriate,  to effectuate the following enumerated transactions in respect
of any of the Mortgages securing a Mortgage Loan and the related Loan Agreements
for  which  the   undersigned  is  acting  as  Indenture   Trustee  for  various
Securityholders  (whether  the  undersigned  is named  therein as  mortgagee  or
beneficiary  or has  become  mortgagee  by  virtue of  endorsement  of such Loan
Agreement  secured by any such Mortgage) and for which  Wachovia Bank,  National
Association is acting as Servicer pursuant to the Servicing Agreement.

This appointment shall apply to the following enumerated transactions only:

1.   The modification or re-recording of a Mortgage,  where said modification or
     re-recording  is for the purpose of correcting the Mortgage to conform same
     to the original  intent of the parties  thereto or to correct  title errors
     discovered  after such title insurance was issued and said  modification or
     re-recording, in either instance, does not adversely affect the Lien of the
     Mortgage as insured.

2.   The  subordination  of the Lien of a Mortgage  to an easement in favor of a
     public  utility  company  or a  government  agency or unit  with  powers of
     eminent  domain;  this  section  shall  include,  without  limitation,  the
     execution of partial  satisfactions/releases,  partial reconveyances or the
     execution of requests to trustees to accomplish same.

3.   With respect to a Mortgage,  the foreclosure,  the taking of a deed in lieu
     of foreclosure,  or the completion of judicial or non-judicial  foreclosure
     or  termination,  cancellation  or  rescission  of  any  such  foreclosure,
     including, without limitation, any and all of the following acts:

     a.   The substitution of trustee(s) serving under a Mortgage, in accordance
          with state law and the Mortgage;

     b.   The   preparation   and   issuance   of   statements   of   breach  or
          non-performance;

     c.   The preparation and issuance of notices of default;

                                      C-1

<PAGE>

     d.   Cancellations/rescissions  of  notices of  default  and/or  notices of
          sale;

     e.   The taking of a deed in lieu of foreclosure; and

     f.   Such other  documents and actions as may be necessary  under the terms
          of  the  Mortgage  or  state  law  to   expeditiously   complete  said
          transactions.

4.   The conveyance of the properties to the mortgage insurer, or the closing of
     the  title  to the  property  to be  acquired  as  real  estate  owned,  or
     conveyance of title to real estate owned.

5.   The completion of loan assumption agreements.

6.   The full  satisfaction/release  of a  Mortgage  or full  reconveyance  upon
     payment and  discharge  of all sums  secured  thereby,  including,  without
     limitation, cancellation of the related Loan Agreement.

7.   The  assignment  of  any  Mortgage  and  the  related  Loan  Agreement,  in
     connection  with the  repurchase of the Mortgage Loan secured and evidenced
     thereby.

8.   The full  assignment  of a Mortgage  upon payment and discharge of all sums
     secured  thereby in conjunction  with the refinancing  thereof,  including,
     without limitation, the endorsement of the related Loan Agreement.

9.   The modification or re-recording of a Mortgage,  where said modification or
     re-recording   is  for  the  purpose  of  any   modification   pursuant  to
     Section 4.01 of the Servicing Agreement.

10.  The subordination of the Lien of a Mortgage, where said subordination is in
     connection with any modification  pursuant to Section 3.01 of the Servicing
     Agreement,   and  the  execution  of  partial   satisfactions/releases   in
     connection with such same Section 3.01.

     The  undersigned  gives said  Attorney-in-Fact  full power and authority to
execute  such  instruments  and to do and  perform  all and  every act and thing
necessary  and  proper to carry into  effect  the power or powers  granted by or
under this Limited Power of Attorney as fully as the undersigned  might or could
do, and hereby does ratify and confirm to all that said  Attorney-in-Fact  shall
lawfully do or cause to be done by authority hereof.

     Capitalized terms used herein that are not otherwise defined shall have the
meanings ascribed thereto in Appendix A to the Indenture.

                                      C-2

<PAGE>

     Third parties without actual notice may rely upon the exercise of the power
granted  under this Limited  Power of Attorney  and may be  satisfied  that this
Limited  Power of Attorney  shall  continue in full force and effect and has not
been revoked, unless an instrument of revocation has been made in writing by the
undersigned.

                                         U.S. Bank National Association,
                                          not in its individual capacity
                                          but solely as Indenture Trustee

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

                                      C-3

<PAGE>

STATE OF                            )
                                    SS.
COUNTY OF                           )

     On this [___] day of July, 2003,  before me the undersigned,  Notary Public
of said State,  personally appeared ,
                                     -------------------------------------------
personally  known to me to be duly  authorized  officers of U.S.  Bank  National
Association that executed the within instrument and personally known to me to be
the persons who executed the within  instrument  on behalf of U.S. Bank National
Association  therein  named,  and  acknowledged  to me such U.S.  Bank  National
Association executed the within instrument pursuant to its by-laws.

                                            WITNESS my hand and official seal.

                                            Notary Public in and for the
                                            State of
                                                    ----------------------------

After recording, please mail to:

Attn:
     ---------------------------

                                      C-4
<PAGE>

                                   EXHIBIT D

                          FORM OF REQUEST FOR RELEASE

DATE:

TO:

RE:  REQUEST FOR RELEASE OF DOCUMENTS

In connection  with your  administration  of the Mortgage  Loans, we request the
release of the Mortgage File described below.

Servicing Agreement Dated:
Series #:
Account #:
Pool #:
Loan #:
Borrower Name(s):
Reason for Document Request: (circle one)             Mortgage Loan
Prepaid in Full                                        Mortgage Loan Repurchased

"We hereby  certify  that all amounts  received or to be received in  connection
with such  payments  which are required to be deposited  have been or will be so
deposited as provided in the Servicing Agreement."

-----------------------------------------
Wachovia Bank, National Association
Authorized Signature

******************************************************************************
TO CUSTODIAN:  Please  acknowledge  this request,  and check off documents being
enclosed with a copy of this form. You should retain this form for your files in
accordance with the terms of the Servicing Agreement.

Enclosed Documents:   [  ]   Loan Agreement

Name
    ----------------------------
Title
      --------------------------

                                      D-1
<PAGE>EXECUTION COPY

================================================================================

                      WACHOVIA ASSET SECURITIZATION, INC.,

                                  as Depositor

                                      and

                           WILMINGTON TRUST COMPANY,

                                as Owner Trustee

                    ----------------------------------------

                                TRUST AGREEMENT

                            Dated as of July 2, 2003

                    ----------------------------------------

               WACHOVIA ASSET SECURITIZATION, INC. 2003-HE2 TRUST
         Wachovia Asset Securitization, Inc. Asset-Backed Certificates,
                                Series 2003-HE2

================================================================================
<PAGE>

                               TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE I     Definitions......................................................1

      Section 1.01.   Definitions..............................................1

      Section 1.02.   Other Definitional Provisions............................1

ARTICLE II    Organization.....................................................2

      Section 2.01.   Name.....................................................2

      Section 2.02.   Office...................................................2

      Section 2.03.   Purposes and Powers......................................2

      Section 2.04.   Appointment of Owner Trustee.............................3

      Section 2.05.   Initial Capital Contribution of Trust Estate.............3

      Section 2.06.   Declaration of Trust.....................................3

      Section 2.07.   Title to Trust Property..................................4

      Section 2.08.   Situs of Trust...........................................4

      Section 2.09.   Representations and Warranties of the Depositor..........4

      Section 2.10.   Payment of Trust Fees....................................7

ARTICLE III   Conveyance of the Mortgage Loans; Certificates...................7

      Section 3.01.   Conveyance of the Mortgage Loans.........................7

      Section 3.02.   Payment of Purchase Price for Subsequent
                      Mortgage Loans and Additional Balances...................9

      Section 3.03.   Draws During Rapid Amortization Period...................9

      Section 3.04.   Allocation...............................................9

      Section 3.05.   Addition of Subsequent Mortgage Loans....................9

      Section 3.06.   Initial Ownership........................................9

      Section 3.07.   Issuance of Certificates.................................9

      Section 3.08.   Authentication of Certificates..........................10

      Section 3.09.   Registration of and Limitations on Transfer and
                      Exchange of Certificates................................10

      Section 3.10.   Mutilated, Destroyed, Lost or Stolen Certificates.......13

      Section 3.11.   Persons Deemed Certificateholders.......................13

      Section 3.12.   Access to List of Certificateholders' Names
                      and Addresses...........................................13

      Section 3.13.   Maintenance of Office or Agency.........................14

                                      -i-

<PAGE>

                               TABLE OF CONTENTS
                                  (continued)
                                                                            Page
                                                                            ----

      Section 3.14.   Certificate Paying Agent................................14

      Section 3.15.   Cooperation.............................................15

      Section 3.16.   [Reserved]..............................................15

      Section 3.17.   Subordination...........................................15

      Section 3.18.   No Priority Among Certificates..........................16

ARTICLE IV    Authority and Duties of Owner Trustee...........................16

      Section 4.01.   General Authority.......................................16

      Section 4.02.   General Duties..........................................16

      Section 4.03.   Action upon Instruction.................................16

      Section 4.04.   No Duties Except as Specified under
                      Specified Documents or in Instructions..................17

      Section 4.05.   Restrictions............................................17

      Section 4.06.   Prior Notice to Certificateholders and the
                      Enhancer with Respect to Certain Matters................17

      Section 4.07.   Action by Certificateholders with Respect to
                      Certain Matters.........................................18

      Section 4.08.   Action by Certificateholders with Respect
                      to Bankruptcy...........................................18

      Section 4.09.   Restrictions on Certificateholders' Power...............18

      Section 4.10.   Majority Control........................................18

      Section 4.11.   Doing Business in Other Jurisdictions...................19

      Section 4.12.   Removal of Mortgage Loans...............................19

ARTICLE V     Application of Trust Funds......................................19

      Section 5.01.   Distributions...........................................19

      Section 5.02.   Method of Payment.......................................20

      Section 5.03.   Signature on Returns....................................20

      Section 5.04.   Statements to Certificateholders........................20

      Section 5.05.   Tax Reporting...........................................20

ARTICLE VI    Concerning the Owner Trustee....................................20

      Section 6.01.   Acceptance of Trusts and Duties.........................20

      Section 6.02.   Furnishing of Documents.................................22

      Section 6.03.   Representations and Warranties..........................22

                                      -ii-

<PAGE>

                               TABLE OF CONTENTS
                                  (continued)
                                                                            Page
                                                                            ----

      Section 6.04.   Reliance; Advice of Counsel.............................22

      Section 6.05.   Not Acting in Individual Capacity.......................23

      Section 6.06.   Owner Trustee Not Liable for Certificates or
                      Related Documents.......................................23

      Section 6.07.   Owner Trustee May Own Certificates and Notes............23

ARTICLE VII   Compensation of Owner Trustee...................................24

      Section 7.01.   Owner Trustee's Fees and Expenses.......................24

      Section 7.02.   Indemnification.........................................24

ARTICLE VIII  Termination of Trust Agreement..................................25

      Section 8.01.   Termination of Trust Agreement..........................25

ARTICLE IX    Successor Owner Trustees and Additional Owner Trustees..........26

      Section 9.01.   Eligibility Requirements for Owner Trustee..............26

      Section 9.02.   Replacement of Owner Trustee............................26

      Section 9.03.   Successor Owner Trustee.................................27

      Section 9.04.   Merger or Consolidation of Owner Trustee................27

      Section 9.05.   Appointment of Co-Trustee or Separate Trustee...........27

ARTICLE X     Miscellaneous...................................................29

      Section 10.01.  Amendments..............................................29

      Section 10.02.  No Legal Title to Trust Estate..........................30

      Section 10.03.  Limitations on Rights of Others.........................30

      Section 10.04.  Notices.................................................31

      Section 10.05.  Severability............................................31

      Section 10.06.  Separate Counterparts...................................31

      Section 10.07.  Successors and Assigns..................................31

      Section 10.08.  No Petition.............................................31

      Section 10.09.  No Recourse.............................................32

      Section 10.10.  Headings................................................32

      Section 10.11.  GOVERNING LAW...........................................32

      Section 10.12.  Integration.............................................32

                                     -iii-

<PAGE>

                               TABLE OF CONTENTS
                                  (continued)
                                                                            Page
                                                                            ----

      Section 10.13.  Rights of Enhancer to Exercise Rights
                      of Certificateholders...................................32

EXHIBITS

      Exhibit A - Form of Certificate........................................A-1
      Exhibit B - Certificate of Trust.......................................B-1
      Exhibit C - Form of Rule 144A Investment Representation................C-1
      Exhibit D - Form of Investor Representation Letter.....................D-1
      Exhibit E - Form of Transferor Representation Letter...................E-1
      Exhibit F - Form of Certificate of Non-Foreign Status..................F-1
      Exhibit G - Form of ERISA Representation Letter........................G-1
      Exhibit H - Form of Representation Letter..............................H-1
      Exhibit I - Form of Addition Notice....................................I-1
      Exhibit J - Form of Transfer Agreement.................................J-1

                                      -iv-

<PAGE>

     This trust  agreement,  dated as of July 2, 2003 (as  amended  from time to
time, the "Trust Agreement"),  is among Wachovia Asset  Securitization,  Inc., a
North Carolina corporation, as depositor (the "Depositor"), and Wilmington Trust
Company, a Delaware banking corporation, as owner trustee (the "Owner Trustee").

                                  WITNESSETH:

     WHEREAS,  the  Depositor  and the Owner  Trustee  desire to form a Delaware
statutory trust;

     NOW, THEREFORE, In consideration of the mutual agreements herein contained,
the Depositor and the Owner Trustee agree as follows:

                                   ARTICLE I

                                  Definitions

     Section 1.01 Definitions.  For all purposes of this Trust Agreement, except
as otherwise expressly provided herein or unless the context otherwise requires,
capitalized  terms used herein  that are not  otherwise  defined  shall have the
meanings  ascribed  thereto in Appendix A to the  indenture  dated as of July 2,
2003 (the  "Indenture"),  among Wachovia  Asset  Securitization,  Inc.  2003-HE2
Trust, as Issuer, Wachovia Bank, National Association, as Paying Agent, and U.S.
Bank National  Association,  as Indenture Trustee, and such Appendix A is hereby
incorporated by reference and made are part of this Trust  Agreement.  All other
capitalized terms used herein shall have the meanings specified herein.

     Section 1.02 Other Definitional Provisions.

     (a) All terms  defined  in this  Trust  Agreement  shall  have the  defined
meanings  when  used in any  certificate  or other  document  made or  delivered
pursuant hereto unless otherwise defined therein.

     (b) As  used  in this  Trust  Agreement  and in any  certificate  or  other
document  made or delivered  pursuant  hereto or thereto,  accounting  terms not
defined in this Trust  Agreement or in any such  certificate or other  document,
and  accounting  terms  partly  defined in this Trust  Agreement  or in any such
certificate  or  other  document  to the  extent  not  defined,  shall  have the
respective   meanings  given  to  them  under  generally   accepted   accounting
principles. To the extent that the definitions of accounting terms in this Trust
Agreement or in any such certificate or other document are inconsistent with the
meanings of such terms  under  generally  accepted  accounting  principles,  the
definitions  contained  in this Trust  Agreement or in any such  certificate  or
other document shall control.

     (c) The words "hereof,"  "herein,"  "hereunder" and words of similar import
when used in this Trust Agreement shall refer to this Trust Agreement as a whole
and not to any particular provision of this Trust Agreement; Section and Exhibit
references  contained in this Trust  Agreement  are  references  to Sections and
Exhibits in or to this Trust Agreement unless

                                       1

<PAGE>

otherwise  specified;   the  term  "including"  shall  mean  "including  without
limitation"; "or" shall include "and/or"; and the term "proceeds" shall have the
meaning ascribed thereto in the UCC.

     (d) The definitions contained in this Trust Agreement are applicable to the
singular as well as the plural forms of such terms and to the  masculine as well
as to the feminine and neuter genders of such terms.

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

                                   ARTICLE II

                                  Organization

     Section  2.01 Name.  The trust  created  hereby shall be known as "Wachovia
Asset Securitization,  Inc. 2003-HE2 Trust," in which name the Owner Trustee may
conduct  the  business  of the  Trust,  make and  execute  contracts  and  other
instruments on behalf of the Trust and sue and be sued.

     Section 2.02 Office.  The office of the Trust shall be in care of the Owner
Trustee at the  Corporate  Trust Office or at such other  address in Delaware as
the Owner Trustee may designate by written notice to the Certificateholders, the
Depositor, and the Enhancer.

     Section 2.03 Purposes and Powers.  The purpose of the Trust is to engage in
the following activities:

     (a) to issue the  Notes  pursuant  to the  Indenture  and the  Certificates
pursuant to this Trust Agreement and to sell the Notes and the Certificates;

     (b) to purchase the Mortgage Loans and to pay the organizational,  start-up
and transactional expenses of the Trust;

     (c) to assign,  grant,  transfer,  pledge and  convey  the  Mortgage  Loans
pursuant  to  the  Indenture  and  to  hold,   manage  and   distribute  to  the
Certificateholders  pursuant to Section 5.01 any portion of the  Mortgage  Loans
released from the Lien of, and remitted to the Trust pursuant to, the Indenture;

     (d) to enter into and perform its obligations  under the Basic Documents to
which it is to be a party;

     (e) to engage in those activities, including entering into agreements, that
are  necessary,  suitable or  convenient  to  accomplish  the  foregoing  or are
incidental thereto or connected  therewith,  including,  without limitation,  to
accept  additional  contributions  of equity that are not subject to the Lien of
the Indenture; and

                                       2

<PAGE>

     (f) subject to compliance with the Basic Documents, to engage in such other
activities  as may be  required in  connection  with  conservation  of the Trust
Estate and the making of distributions to the Securityholders.

The Trust is hereby authorized to engage in the foregoing activities.  The Trust
shall not engage in any activity other than in connection  with the foregoing or
other than as required or authorized by the terms of this Trust Agreement or the
other Basic Documents  while any Note is outstanding  without the consent of the
holders of  Certificates  evidencing  a majority  of the  aggregate  Certificate
Percentage Interest of the Certificates, the Indenture Trustee, the Enhancer and
the holders of Notes  representing  a majority of the Note Balance of the Notes;
provided  that  any  Certificate  registered  in the  name of the  Seller  or an
Affiliate  of the Seller will not be  considered a  Certificate  for purposes of
such consent;  provided,  further,  that if 100% of the Certificates are held by
the Seller or an Affiliate of the Seller, the consent of the  Certificateholders
will not be required.

     Section 2.04  Appointment of Owner Trustee.  The Depositor  hereby appoints
the Owner  Trustee as trustee of the Trust  effective as of the date hereof,  to
have all the rights, powers and duties set forth herein.

     Section 2.05 Initial Capital Contribution of Trust Estate. In consideration
of the delivery by the Owner Trustee,  on behalf of the Trust, of the Securities
to the  Depositor  or its  designee,  upon  the  order  of  the  Depositor,  the
Depositor,  as of the  Closing  Date and  concurrently  with the  execution  and
delivery hereof, does hereby transfer,  assign, set over and otherwise convey to
the Trust,  without  recourse,  but subject to the other terms and provisions of
this Trust Agreement,  all of the right,  title and interest of the Depositor in
and to the  Trust  Estate.  The  foregoing  transfer,  assignment,  set over and
conveyance  does  not,  and is not  intended  to,  result  in a  creation  or an
assumption  by the Trust of any  obligation of the Depositor or any other Person
in  connection  with the  Trust  Estate  or under any  agreement  or  instrument
relating thereto, except as specifically set forth herein.

     The Owner Trustee,  on behalf of the Trust,  acknowledges the conveyance to
the  Trust by the  Depositor,  as of the  Closing  Date,  of the  Trust  Estate,
including  all right,  title and  interest of the  Depositor in and to the Trust
Estate.  Concurrently with such conveyance and in exchange  therefor,  the Trust
has pledged the Trust  Estate to the  Indenture  Trustee  and has  executed  the
Certificates  and  the  Notes  and  caused  them to be  duly  authenticated  and
delivered.

     Section 2.06  Declaration of Trust.  The Owner Trustee hereby declares that
it shall hold the Trust Estate in trust upon and subject to the  conditions  set
forth herein for the use and benefit of the  Certificateholders,  subject to the
obligations of the Trust under the Basic  Documents.  It is the intention of the
parties hereto that the Trust  constitute a statutory  trust under the Statutory
Trust Statute and that this Trust Agreement  constitute the governing instrument
of such  statutory  trust.  Effective as of the date hereof,  the Owner  Trustee
shall have all rights,  powers and duties set forth herein and in the  Statutory
Trust Statute with respect to accomplishing the purposes of the Trust. It is the
intention of the parties hereto that solely for federal,  state and local income
and franchise tax purposes,  for so long as 100% of the Certificates are held by
a single person or entity,  the Trust shall be treated as an entity wholly owned
by such person or entity,  with the assets of the entity being the Trust Estate,
and the  Notes  being  debt of the  entity,  and the

                                       3

<PAGE>

provisions  of this  Trust  Agreement  shall  be  interpreted  to  further  this
intention.  If more than one person  owns the  Certificates,  it is the  further
intention of the parties hereto that solely for federal,  state and local income
and  franchise  tax purposes the Owner Trust shall be treated as a  partnership,
with the assets of the  partnership  being  Trust  Estate,  the  partners of the
partnership  being  the  Certificateholders  and  the  Notes  being  debt of the
partnership.  The  provisions of this Trust  Agreement  shall be  interpreted to
further such intentions.  Neither the Depositor nor any Certificateholder  shall
have any personal  liability for any liability or obligation of the Trust, other
than the indemnification obligations as provided in Section 7.2 herein.

     Section 2.07 Title to Trust Property. Legal title to the Trust Estate shall
be vested at all times in the Trust as a  separate  legal  entity  except  where
applicable  law in any  jurisdiction  requires  title to any  part of the  Trust
Estate to be vested in a trustee  or  trustees,  in which  case  title  shall be
deemed to be  vested  in the  Owner  Trustee,  a  co-trustee  and/or a  separate
trustee, as the case may be.

     Section 2.08 Situs of Trust.  The Trust will be located and administered in
the State of Delaware.  All bank  accounts  maintained  by the Owner  Trustee on
behalf of the Trust  shall be located in the State of  Delaware  or the State of
New  York.  The Trust  shall not have any  employees  in any  state  other  than
Delaware;  provided, however, that nothing herein shall restrict or prohibit the
Owner Trustee from having  employees  within or without the State of Delaware or
taking  actions  outside the State of  Delaware in order to comply with  Section
2.03.  Payments will be received by the Trust only in Delaware,  New York or the
Corporate  Trust Office of the  Certificate  Paying Agent,  and payments will be
made by the Trust only from Delaware,  New York or the Corporate Trust Office of
the  Certificate  Paying  Agent.  The only  office of the  Trust  will be at the
Corporate Trust Office of the Owner Trustee in Delaware.

     Section 2.09 Representations and Warranties of the Depositor. The Depositor
hereby represents and warrants to the Owner Trustee and the Enhancer that:

     (a) The  Depositor  has been  duly  formed,  is  validly  existing  in good
standing under the laws of the state of its formation,  and is duly qualified to
do business and is in good standing  under the laws of each  jurisdiction  where
the character of its property,  the nature of its business or the performance of
its  obligations,  if any,  under the Basic  Documents  make such  qualification
necessary. The jurisdiction of organization of the Depositor is Delaware and the
Depositor is a "registered organization" (within the meaning of Section 9-102 of
the UCC in effect in Delaware).

     (b)  The  Depositor  has  all  requisite  power  and  authority  to own its
properties,  to conduct its  business,  to execute and deliver each of the Basic
Documents to be executed and  delivered by the  Depositor  and to enter into and
perform  all  of  its  obligations   thereunder  and  any  of  the  transactions
contemplated thereby.

     (c) Each Basic  Document to be executed and  delivered by the Depositor has
been duly authorized,  executed and delivered by the Depositor and, assuming the
due execution and delivery by the other  parties  thereto,  constitutes a legal,
valid and binding  agreement,  enforceable  against the  Depositor in accordance
with  its  terms,   except  as  enforceability  may  be  limited  by  applicable
bankruptcy, insolvency, reorganization,  moratorium or other similar laws

                                       4

<PAGE>

now or hereafter in effect  affecting the  enforcement  of creditors'  rights in
general and except as such  enforceability  may be limited by general principles
of equity (whether considered in a proceeding at law or in equity).

     (d) The execution  and delivery by the Depositor of the Basic  Documents to
which the  Depositor  is a party and the  performance  by the  Depositor  of its
obligations  thereunder  do  not  (A)  violate  any  of  the  provisions  of the
organizational documents of the Depositor, (B) violate any provision of any law,
governmental rule or regulation  currently in effect applicable to the Depositor
or to its properties or by which the Depositor or its properties may be bound or
affected, which violation would materially and adversely affect the right of the
Trust to perform any of the applicable  provisions of the Basic  Documents,  (C)
violate any judgment,  decree, writ, injunction,  award,  determination or order
currently in effect applicable to the Depositor or to its properties or by which
the Depositor or its properties  are bound or affected,  which  violation  would
materially  and  adversely  affect the right of the Trust to perform  any of the
applicable  provisions  of the Basic  Documents,  (D)  conflict in any  material
respect with, or result in a breach in any material  respect of, or constitute a
default in any material  respect under,  any of the provisions of any indenture,
mortgage,  deed of trust, contract or other instrument to which the Depositor is
a party or by  which it is  bound,  which  conflict,  breach  or  default  would
materially and adversely affect the right of the Depositor to perform any of the
applicable  provisions of the Basic Documents,  or (E) result in the creation or
imposition of any Lien upon any of the  properties of the Depositor  pursuant to
the terms of any such  indenture,  mortgage,  deed of trust,  contract  or other
instrument (other than the Basic Documents).

     (e) No consent,  approval, order or authorization by, and no filing with or
notice to, any court or other governmental authority in respect of the Depositor
is  required  in  connection  with the  authorization,  execution,  delivery  or
performance by the Depositor of the Basic Documents to which it is a party.

     (f) There are no  pending  or,  to the best of the  Depositor's  knowledge,
threatened,  actions,  suits,  proceedings or  investigations  before any court,
administrative  agency,   arbitrator  or  governmental  body  that,  if  decided
adversely, would materially and adversely affect (A) the condition (financial or
otherwise),  business or  operations  of the Depositor or (B) the ability of the
Depositor to perform its obligations  under,  or the validity or  enforceability
of, the Basic Documents to which it is a party.

     (g) The Depositor is solvent,  and the Depositor does not  contemplate  any
pending insolvency or believe or have reason to believe that it will not be able
to pay its debts and other obligations as they become due. The Depositor did not
transfer the Transferred  Property pursuant to this Agreement with any intent to
hinder, delay or defraud any of its creditors.

     (h) Immediately prior to (1) the transfer hereunder, the Depositor had good
and  marketable  title  to the  interest  in the  Initial  Transferred  Property
conveyed to it,  free and clear of all Liens,  pledges,  charges,  encumbrances,
security  interests  or  adverse  claims  of  any  nature,  and  this  Agreement
constitutes a valid assignment and transfer to the Trust of all right, title and
interest of the Depositor in and to the Initial Transferred Property and (2) the
transfer under the related Subsequent Transfer Agreement, the Depositor had good
and  marketable  title to

                                       5

<PAGE>

the interest in the related Subsequent Transferred Property conveyed to it, free
and clear of all liens, pledges,  charges,  encumbrances,  security interests or
adverse  claims of any  nature and this  Agreement  and the  related  Subsequent
Transfer  Agreement,  when  executed  and  delivered,  will  constitute  a valid
assignment  and  transfer to the Trust of all right,  title and  interest of the
Depositor in and to the related Subsequent Transferred Property.

     (i)  The  Depositor  is not  in  default  under  any  agreement,  contract,
instrument or indenture to which such party is a party or by which such party or
its respective  properties is or are bound,  or with respect to any order of any
court, administrative agency, arbitrator or governmental body, that would have a
material  adverse  effect  on the  transactions  contemplated  under  the  Basic
Documents;  and no event has occurred  that with notice or lapse of time or both
would  constitute such a default with respect to any such  agreement,  contract,
instrument  or  indenture,  or with  respect  to any such  order  of any  court,
administrative agency, arbitrator or governmental body.

     (j) The chief  executive  office of the Depositor is located at the address
set forth in Section 10.04.

     (k)  The  Depositor  acquired  title  to its  interest  in the  Transferred
Property in good faith,  without notice of any adverse claim to the  Transferred
Property.

     (l) The  Depositor  has caused its  computer and  accounting  records to be
marked  to show that a sale of,  or a  security  interest  in,  the  Transferred
Property has been made or granted to the Issuer.

     (m) The  purchase  price  paid by the  Depositor  for  the  portion  of the
Transferred Property relating to the Closing Date or related Subsequent Transfer
Date, as applicable, is the fair market value of such portion of the Transferred
Property.

     (n) This  Agreement  creates a valid and continuing  security  interest (as
defined in the  applicable  UCC) in the Loan  Agreements in favor of the Issuer,
which  security  interest  is prior to all  other  Liens  (except  as  expressly
permitted  otherwise in this  Indenture),  and is enforceable as such as against
creditors of and purchasers from the Issuer.

     (o) The Loan Agreements  constitute  "accounts,"  "general  intangibles" or
"instruments"  within the meaning of the applicable  UCC. (p) The Depositor owns
and has good and marketable  title to the Loan  Agreements free and clear of any
Lien of any Person.

     (q) The Depositor  has received all consents and approvals  required by the
terms of the Loan Agreements to the sale of the Loan Agreements hereunder to the
Trust.

     (r) The  Depositor  has caused or will have  caused,  within ten days,  the
filing of all  appropriate  financing  statements in the proper filing office in
the  appropriate  jurisdictions  under  applicable  law in order to perfect  the
security interest in the Loan Agreements granted to the Trust hereunder.

                                       6

<PAGE>

     (s) Other than the security  interest granted to the Trust pursuant to this
Agreement,  the Depositor has not pledged,  assigned,  sold,  granted a security
interest in, or otherwise conveyed any of the Loan Agreements. The Depositor has
not  authorized  the  filing  of and is not  aware of any  financing  statements
against the Depositor that include a description of collateral covering the Loan
Agreements other than any financing  statement relating to the security interest
granted  to the  Depositor  hereunder  or any  security  interest  that has been
terminated.  The  Depositor  is not aware of any  judgment  or tax lien  filings
against the Depositor.

     (t) The Servicer,  on behalf of the  Depositor,  has in its  possession all
original  copies of the Loan  Agreements.  The Loan  Agreements  do not have any
marks or notations indicating that they have been pledged, assigned or otherwise
conveyed to any Person  other than the  Depositor,  the Trust and the  Indenture
Trustee.  All financing statements filed or to be filed against the Depositor in
favor of the Trust in connection herewith describing the Loan Agreements contain
a statement to the following  effect: "A purchase of or security interest in any
collateral  described in this financing statement will violate the rights of the
Trust."

     (u) None of the  Mortgage  Notes that  constitute  or evidence the Mortgage
Loans  has any marks or  notations  indicating  that  they  have  been  pledged,
assigned or otherwise conveyed to any Person other than the Trust.

     The representations and warranties set forth in Section 2.09(n) through (t)
shall not be waived without the prior written consent of Standard and Poor's.

     Upon notice from the Enhancer, the Issuer, the Owner Trustee, the Indenture
Trustee,  the Paying Agent or the Servicer,  as  applicable,  of a breach of the
Depositor's  respective  representations or warranties above that materially and
adversely affects the interests of the Securityholders in any Mortgage Loan, the
Depositor  shall,  within 90 days of its  discovery  or its receipt of notice of
such breach, either (i) cure such breach in all material respects or (ii) to the
extent  that  such  breach  is with  respect  to a  Mortgage  Loan or a  Related
Document,  either (A)  repurchase  such  Mortgage Loan from the Purchaser or its
assignee  at the  Repurchase  Price,  or (B)  substitute  one or  more  Eligible
Substitute Loans received from the Seller pursuant to the Purchase Agreement.

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

     Section 2.10 Payment of Trust Fees. The Owner Trustee shall pay the Trust's
fees and expenses incurred with respect to the performance of the Trust's duties
under the Indenture.

                                  ARTICLE III

                 Conveyance of the Mortgage Loans; Certificates

     Section 3.01 Conveyance of the Mortgage Loans.

                                       7

<PAGE>

     (a) The Depositor,  by the execution and delivery of this  Agreement,  does
hereby  sell,  assign,  set over,  and  otherwise  convey to the Trust,  without
recourse  (except as expressly  provided  herein),  all of its right,  title and
interest,  whether now owned or  existing  or  hereafter  created,  arising,  or
acquired,  in, to and under (i) the Initial Mortgage Loans and the other related
Initial  Transferred  Property and (ii) the Subsequent  Mortgage Loans and other
related Subsequent Transferred Property, in each case purchased by the Depositor
from the Seller pursuant to the Purchase Agreement;  provided, however, that the
Trust does not assume any obligations  (including any obligations to fund Draws)
arising  under or related to the Related  Documents.  Such  conveyance  shall be
deemed to be made:  (1) with  respect to the  Cut-Off  Date  Principal  Balances
relating to the Initial Mortgage Loans, as of the Closing Date; (2) with respect
to the Cut-Off  Date  Principal  Balances  relating to the  Subsequent  Mortgage
Loans,  as of the related  Subsequent  Transfer  Date;  (3) with  respect to the
amount of each  Additional  Balance  created on or after the Cut-Off Date or the
Subsequent  Cut-Off Date, as applicable,  and prior to the  commencement  of the
Rapid  Amortization  Period,  as of the later of the Closing Date or the related
Subsequent Cut-Off Date, as applicable, and the date that the corresponding Draw
was made pursuant to the related Loan  Agreement,  subject to the receipt by the
Depositor of consideration therefor as provided herein under Section 3.02(c).

     (b) The Depositor hereby assigns to the Trust all of the Depositor's right,
title and  interest  to and  under the  Purchase  Agreement  and any  Subsequent
Transfer  Agreement  executed by the Depositor as Purchaser,  including  without
limitation  the  Depositor's  right to  enforce  the  obligations  of the Seller
thereunder  (including the Seller's  obligation to repurchase  Mortgage Loans as
the result of a breach of the Seller's  representations  and  warranties  in the
Purchase Agreement).

     (c) In  connection  with the  conveyance  by the  Depositor  of the Initial
Mortgage Loans, the Depositor further agrees, at its own expense, on or prior to
the Closing Date, to indicate in its books and records that the Initial Mortgage
Loans have been sold to the Trust pursuant to this Agreement,  and to deliver to
the Trust true and complete  lists of all of the Mortgage  Loans  specifying for
each Mortgage Loan the information contained in the Mortgage Loan Schedule.  The
Mortgage Loan  Schedule is attached as Exhibit A to the Servicing  Agreement and
is hereby incorporated into and made a part of this Agreement.

     (d) Upon the sale of the Initial Mortgage Loans and the Subsequent Mortgage
Loans, as applicable, the ownership of each related Loan Agreement, each related
Mortgage  and the contents of the related  Mortgage  File shall be vested in the
Trust and the ownership of all records and documents with respect to the Initial
Mortgage  Loans and the  Subsequent  Mortgage  Loans,  as  applicable,  that are
prepared by or that come into the possession of the Depositor,  as seller of the
Initial  Mortgage Loans  hereunder and the  Subsequent  Mortgage Loans under the
related Subsequent Transfer  Agreement,  or by the Servicer under this Agreement
shall  immediately  vest in the Trust,  and shall be retained and  maintained in
trust by the Servicer at the will of the Trust, in such custodial capacity only,
or in trust by the  Indenture  Trustee if the Mortgage  Files are required to be
transferred by the Servicer to the Indenture Trustee,  pursuant to the Servicing
Agreement;  provided, however, that any records and documents that come into the
possession of the Depositor  shall be promptly  delivered to the Servicer or the
Indenture,  as applicable.  The Depositor's  records will accurately reflect the
sale of the Initial Mortgage Loans by it to the Trust.

                                       8

<PAGE>

     The Trust  hereby  acknowledges  its  acceptance  of all  right,  title and
interest to the property conveyed to it pursuant to this Section 3.01.

     (e) The  parties  hereto  intend  that the  transactions  set forth  herein
constitute a sale,  including for accounting  purposes,  by the Depositor to the
Trust of the Depositor's  right, title and interest in and to the Mortgage Loans
and the other Transferred  Property,  and not a secured borrowing.  In the event
the  transactions  set forth herein are deemed not to be a sale,  the  Depositor
hereby grants to the Trust a security interest in all of the Depositor's  right,
title and interest,  whether now owned or hereafter  acquired,  in, to and under
the Transferred Property to secure all of the Depositor's obligations hereunder,
and this Agreement shall and hereby does  constitute a security  agreement under
applicable  law. Each of the Mortgage Loan Schedules is hereby  incorporated  by
reference and made a part of this Trust Agreement.  The Depositor agrees to take
or cause to be taken such  actions  and to  execute  such  documents,  including
without  limitation  the  authorization  and  the  filing  of  any  continuation
statements  with respect to the UCC financing  statements  filed with respect to
the  Mortgage  Loans and other  Transferred  Property  by the  Depositor  on the
Closing Date, if any, and any amendments thereto required to reflect a change in
the name or corporate structure of the Depositor or the filing of any additional
UCC  financing  statements  due  to  the  change  in  the  principal  office  or
jurisdiction  of  organization  of the Depositor as are necessary to perfect and
protect the Trust' and its assignees' interests in the Transferred Property. The
Depositor shall file any such continuation statements on a timely basis.

     Section 3.02 Payment of Purchase  Price for  Subsequent  Mortgage Loans and
Additional Balances.

     (a) The "Purchase  Price" for the  Subsequent  Mortgage Loans and the other
Subsequent  Transferred Property to be paid by the Trust to the Depositor on the
related  Subsequent  Transfer  Date shall be 100 percent of the related  Cut-Off
Date  Principal  Balances  thereof (as  identified on the Mortgage Loan Schedule
attached  to  the  related   Subsequent   Transfer  Agreement  provided  by  the
Depositor). In the case of each Additional Balance transferred hereunder created
on or after the Cut-Off Date or  Subsequent  Cut-Off Date,  as  applicable,  and
prior to the commencement of the Rapid  Amortization  Period, the Purchase Price
thereof shall be 100 percent of the  principal  amount of the related Draw under
the related Loan  Agreement  as of the later of the Closing  Date or  Subsequent
Transfer  Date,  as  applicable,  and the date of  creation  of such  Additional
Balance,  adjusted  to  reflect  such  factors  as the  Depositor  and the Trust
mutually agree will result in a Purchase Price  determined to be the fair market
value of such Additional Balance and the related Transferred Property.

     (b) With respect to each Subsequent Mortgage Loan transferred pursuant to a
Subsequent Transfer Agreement and each Additional Balance transferred  hereunder
or pursuant to a  Subsequent  Transfer  Agreement  with  respect to any Mortgage
Loan, as applicable, the Trust shall pay or cause to be paid to the Depositor or
its designee  the Purchase  Price  specified  above in Section  3.02(a) for such
Additional Balance or Subsequent  Mortgage Loan in one of the following ways, as
applicable:  (i) a cash payment  pursuant to Section 3.02(a) hereof in an amount
equal to the related Draw or Cut-Off Date Principal Balance,  as applicable,  if
then  available  from  Principal  Collections  on any Payment Date or amounts on
deposit in the applicable Funding Account,  as applicable,  or (ii) with respect
to an Additional  Balance only,  an

                                       9

<PAGE>

increase  in the related  Additional  Balance  Increase  Amount as of the day on
which  such  Additional  Balance  was  created,  equal  to the  amount  of  such
Additional Balance.

     Section  3.03 Draws  During  Rapid  Amortization  Period.  During the Rapid
Amortization  Period, any Excluded Draws shall not be Additional  Balances,  and
the ownership of the related balances shall be retained by the Seller.  Payments
and collections allocable pursuant to Section 3.04 to an Excluded Draw shall not
be deposited into the Custodial  Account,  the Distribution  Account or the Note
Payment Account,  and shall be distributed by the Servicer to the Seller no less
frequently than monthly in accordance with reasonable  instructions  provided by
the Seller.

     Section 3.04  Allocation.  The Depositor,  the Trust and the Servicer agree
that all  collections  on the Mortgage  Loans will be  allocated  and applied as
provided by the terms of the  related  Loan  Agreements  or by  applicable  law.
Except with  respect to  Liquidation  Loss  Amounts,  if the Loan  Agreement  or
applicable  law does not  specify a method of  allocation  and  application  for
particular  Collections,  such  Collections  shall be allocated  and applied (i)
first, to interest pro rata (based on the respective  amounts coming due on such
day) among the amounts coming due on such dates,  and (ii) then, to principal in
the order of the dates on which  such  amounts  were  first  incurred.  If, as a
result of the  provisions  of this Section  3.04,  Collections  are allocated to
Excluded Draws,  such Collections  shall not be property of the Purchaser or its
assignees and shall be paid by the Servicer to the Seller as provided in Section
3.03.  Liquidation Loss Amounts shall be allocated as provided in the definition
of Excluded Amount.

     Section 3.05 Addition of  Subsequent  Mortgage  Loans.  The transfer by the
Depositor of any Subsequent  Mortgage Loans to the Issuer,  is conditioned  upon
the satisfaction of each of the following  conditions on or prior to the related
Subsequent Transfer Date:

     (a) the Depositor  shall have provided the Indenture  Trustee,  the Issuer,
the Paying Agent,  the Enhancer and the Rating  Agencies with a timely  Addition
Notice  substantially  in the form of Exhibit I attached  hereto,  which  notice
shall be given no later than five Business Days prior to the related  Subsequent
Transfer Date, and shall  designate the Subsequent  Mortgage Loans to be sold to
the Issuer and the aggregate Principal Balance of such Subsequent Mortgage Loans
as of the related Subsequent Cut-Off Date;

     (b) the Depositor shall have delivered to the Indenture Trustee, the Paying
Agent,  the Enhancer and the Rating Agencies duly executed  Subsequent  Transfer
Agreement   substantially   in  the  form  of  Exhibit  J,  (A)  confirming  the
satisfaction of each condition  precedent  specified in this Section 3.05(b) and
in Section 2 of the related  Subsequent  Transfer  Agreement and (B) including a
Mortgage Loan Schedule listing the Subsequent Mortgage Loans;

     (c) as of each  Subsequent  Transfer  Date, as evidenced by delivery to the
Indenture Trustee of the Subsequent Transfer Agreement,  the Depositor shall not
be  insolvent,  made  insolvent  by  such  transfer  or  aware  of  any  pending
insolvency;

     (d) such sale and  transfer  shall not  result in a  material  adverse  tax
consequence  to the Issuer or, due to any action or  inaction on the part of the
Seller, to the Securityholders; and

                                       10

<PAGE>

     (e) the Depositor  shall have provided each of the Enhancer and each Rating
Agency  with loan  level  information  in the  Enhancer's  and each such  Rating
Agency's  standard  format no later than five Business Days prior to the related
Subsequent Transfer Date, which shall designate the Subsequent Mortgage Loans to
be sold to the Issuer,  and shall receive  verbal  consent from the Enhancer and
verbal  confirmation from each Rating Agency that the addition of the Subsequent
Mortgage Loans will not result in a Rating Event.

     Within  five  Business  Days  after  each  Subsequent  Transfer  Date,  the
Depositor shall deliver to the Issuer,  the Rating Agencies,  the Enhancer,  the
Paying  Agent and the  Indenture  Trustee a copy of the Mortgage  Loan  Schedule
reflecting the Subsequent Mortgage Loans in electronic format.

     Section  3.06  Initial  Ownership.  Upon the  formation of the Trust by the
contribution by the Depositor pursuant to Section 2.05 and the conveyance of the
Initial  Mortgage  Loans  pursuant  to  Section  3.01  and the  issuance  of the
Certificates, Depositor shall be the sole Certificateholder.

     Section 3.07 Issuance of Certificates.  The Certificates shall be issued in
minimum  denominations  of  a  Percentage  Interest  of  10.0000%  and  integral
multiples  of 0.0001% in excess  thereof.  The  Certificates  shall be issued in
substantially the form attached hereto as Exhibit A.

     The  Certificates  shall be  executed  on  behalf of the Trust by manual or
facsimile   signature  of  an  authorized  officer  of  the  Owner  Trustee  and
authenticated in the manner provided in Section 3.08.  Certificates  bearing the
manual or facsimile  signatures of  individuals  who were, at the time when such
signatures  shall have been affixed,  authorized to sign on behalf of the Trust,
shall be validly  issued and  entitled to the  benefit of this Trust  Agreement,
notwithstanding  that such individuals or any of them shall have ceased to be so
authorized prior to the  authentication and delivery of such Certificates or did
not  hold  such  offices  at the date of  authentication  and  delivery  of such
Certificates. A Person shall become a Certificateholder and shall be entitled to
the rights and subject to the obligations of a Certificateholder  hereunder upon
such Person's acceptance of a Certificate duly registered in such Person's name,
pursuant to Section 3.09.

     A transferee of a Certificate shall become a Certificateholder and shall be
entitled to the rights and  subject to the  obligations  of a  Certificateholder
hereunder upon such transferee's  acceptance of a Certificate duly registered in
such  transferee's  name pursuant to and upon satisfaction of the conditions set
forth in Section 3.09.

     Section  3.08   Authentication  of  Certificates.   Concurrently  with  the
acquisition of the Initial Mortgage Loans by the Trust, the Owner Trustee or the
Certificate  Paying Agent shall cause the Certificates in an initial  Percentage
Interest of 100.00% to be executed on behalf of the Trust,  authenticated by the
Indenture  Trustee and delivered to or upon the written order of the  Depositor,
signed by its  chairman  of the  board,  its  president  or any vice  president,
without further corporate action by the Depositor, in authorized  denominations.
No Certificate shall entitle the Certificateholder  thereof to any benefit under
this Trust  Agreement  or be valid for any purpose  unless there shall appear on
such Certificate a certificate of  authentication  substantially in the form set
forth in  Exhibit  A hereto,  executed  by the Owner  Trustee  or the  Indenture
Trustee,  by  manual  signature,   and  such  authentication   shall  constitute
conclusive  evidence  that

                                       11

<PAGE>

such  Certificate  has been duly  authenticated  and  delivered  hereunder.  All
Certificates shall be dated the date of their authentication.

     Section 3.09  Registration  of and  Limitations on Transfer and Exchange of
Certificates.  The Certificate  Registrar shall keep or cause to be kept, at the
office or agency maintained pursuant to Section 3.13, a Certificate  Register in
which,  subject  to  such  reasonable  regulations  as  it  may  prescribe,  the
Certificate  Registrar shall provide for the registration of Certificates and of
transfers and exchanges of  Certificates  as herein  provided.  The Paying Agent
shall be the initial Certificate Registrar. If the Certificate Registrar resigns
or  is  removed,  the  Owner  Trustee  shall  appoint  a  successor  Certificate
Registrar.

     Subject to satisfaction  of the conditions set forth below,  upon surrender
for  registration  of  transfer  of any  Certificate  at the  office  or  agency
maintained   pursuant  to  Section  3.13,   the  Owner  Trustee  shall  execute,
authenticate  and  deliver  (or  shall  cause  the  Indenture   Trustee  as  its
authenticating agent to authenticate and deliver), in the name of the designated
transferee  or  transferees,   one  or  more  new   Certificates  in  authorized
denominations of a like aggregate amount dated the date of authentication by the
Owner Trustee or the Indenture  Trustee.  At the option of a  Certificateholder,
Certificates may be exchanged for other Certificates of authorized denominations
of a like aggregate amount upon surrender of the Certificates to be exchanged at
the  office  or  agency  maintained   pursuant  to  Section  3.13.  The  initial
Certificateholder  agrees to not  transfer  any  Certificate  during  either the
Revolving  Period  or  the  Managed  Amortization  Period,  unless  the  initial
Certificateholder  receives an Opinion of Counsel  stating that such transfer of
the Certificate will not adversely  affect the opinion  delivered on the Closing
Date by such counsel  regarding the transfer of the Mortgage  Loans by Seller to
the Depositor.

     Every Certificate  presented or surrendered for registration of transfer or
exchange  shall be  accompanied  by a written  instrument  of  transfer  in form
satisfactory to the Certificate Registrar duly executed by the Certificateholder
or  such   Certificateholder's   attorney  duly  authorized  in  writing.   Each
Certificate  surrendered  for  registration  of transfer  or  exchange  shall be
cancelled  and  subsequently   disposed  of  by  the  Certificate  Registrar  in
accordance with its customary practice.

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

     Except as described  below,  each  Certificateholder  shall  establish  its
non-foreign status by submitting to the Certificate Paying Agent an IRS Form W-9
and the Certificate of Non-Foreign  Status (in  substantially  the form attached
hereto as Exhibit F).

     A Certificate may be transferred to a Certificateholder unable to establish
its  non-foreign  status as described in the  preceding  paragraph  only if such
Certificateholder   provides  an  Opinion  of  Counsel  to  the  Depositor,  the
Certificate Registrar and the Enhancer, which Opinion of Counsel shall not be an
expense  of the Trust,  the Owner  Trustee,  the  Certificate  Registrar  or the
Depositor,  satisfactory  to the Depositor,  the  Certificate  Registrar and the
Enhancer,  that such  transfer  (1) will not  affect the tax status of the Owner
Trust and (2) will not adversely affect the

                                       12

<PAGE>

interests of any Securityholder or the Enhancer,  including, without limitation,
as a result of the imposition of any United States federal  withholding taxes on
the Owner  Trust  (except to the extent  that such  withholding  taxes  would be
payable solely from amounts  otherwise  distributable  to the Certificate of the
prospective   transferee).   If  such   transfer   occurs   and   such   foreign
Certificateholder  becomes  subject to such United  States  federal  withholding
taxes,  any such taxes will be withheld by the  Certificate  Paying Agent at the
direction  of the  Servicer.  Each  Certificateholder  unable to  establish  its
non-foreign  status shall submit to the  Certificate  Paying Agent a copy of its
Form W-8BEN,  Form W-8ECI or Form W-8IMY,  or such  successor  forms  thereto as
required by  then-applicable  regulations,  and shall  resubmit  such form every
three years or with such frequency as required by  then-applicable  regulations.
In addition,  prior to any transfer of a Certificate  prior to July of 2008 to a
Certificateholder   that  cannot   establish   its   non-foreign   status,   the
Certificateholder  shall deliver to the Owner Trustee,  the Paying Agent and the
Indenture  Trustee,  at the  expense  of the  Certificateholder,  an  Opinion of
Counsel  that no  withholding  tax would apply to payments  made under any Yield
Maintenance Agreement.

     No transfer,  sale,  pledge or other  disposition of a Certificate shall be
made unless such transfer,  sale, pledge or other 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 such state
laws.  In the  event of any such  transfer,  the  Certificate  Registrar  or the
Depositor  shall prior to such  transfer  require the  transferee to execute (A)
either (i) (a) an investment letter in substantially the form attached hereto as
Exhibit  C (or  in  such  form  and  substance  reasonably  satisfactory  to the
Certificate  Registrar and the Depositor) which investment  letters shall not be
an expense of the Trust,  the Owner  Trustee,  the  Certificate  Registrar,  the
Servicer or the Depositor and which  investment  letter states that, among other
things,  such  transferee  (a) is a "qualified  institutional  buyer" as defined
under Rule 144A,  acting for its own account or the accounts of other "qualified
institutional  buyers"  as defined  under  Rule 144A,  and (b) is aware that the
proposed   transferor  intends  to  rely  on  the  exemption  from  registration
requirements  under  the  Securities  Act,  provided  by Rule 144A or (ii) (a) a
written Opinion of Counsel acceptable to and in form and substance  satisfactory
to the  Certificate  Registrar and the Depositor  that such transfer may be made
pursuant to an  exemption,  describing  the  applicable  exemption and the basis
therefor,  from the Securities Act and such state laws or is being made pursuant
to the Securities Act and such state laws, which Opinion of Counsel shall not be
an expense of the Trust,  the Owner  Trustee,  the  Certificate  Registrar,  the
Servicer  or the  Depositor  and (b) the  transferee  executes a  representation
letter,  substantially  in the form of  Exhibit  D  hereto,  and the  transferor
executes a representation letter, substantially in the form of Exhibit E hereto,
each  acceptable to and in form and substance  satisfactory  to the  Certificate
Registrar and the Depositor  certifying  the facts  surrounding  such  transfer,
which  representation  letters  shall not be an expense of the Trust,  the Owner
Trustee,  the Certificate  Registrar,  the Servicer or the Depositor and (B) the
Certificate of Non-Foreign  Status (in substantially the form attached hereto as
Exhibit F) acceptable to and in form and substance  reasonably  satisfactory  to
the Certificate  Registrar and the Depositor,  which certificate shall not be an
expense  of the Trust,  the Owner  Trustee,  the  Certificate  Registrar  or the
Depositor.  If such  Certificateholder  is unable to  provide a  Certificate  of
Non-Foreign Status, such Certificateholder must provide an Opinion of Counsel as
described in the preceding paragraph.  The Certificateholder  desiring to effect
such transfer shall,  and does hereby agree to,  indemnify the Trust,  the Owner
Trustee, the Certificate Registrar,  the Certificate Paying Agent, the Indenture
Trustee, the Servicer,  the Paying Agent, the Enhancer and the Depositor against
any liability that may result if the transfer is not so

                                       13

<PAGE>
exempt  or is not made in  accordance  with such  federal  and  state  laws.  No
transfer of Certificates or any interest  therein shall be made to any Plan, any
Person acting, directly or indirectly,  on behalf of any such Plan or any Person
acquiring such  Certificates  with Plan Assets unless the  Depositor,  the Owner
Trustee, the Certificate  Registrar,  the Enhancer and the Servicer are provided
with  an  Opinion  of  Counsel  that  establishes  to  the  satisfaction  of the
Depositor,  the Owner Trustee, the Certificate  Registrar,  the Enhancer and the
Servicer that the purchase of 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 Depositor,  the Owner Trustee,
the Certificate Registrar,  the Certificate Paying Agent, the Indenture Trustee,
the Paying  Agent,  the Enhancer or the Servicer to any  obligation or liability
(including  obligations or liabilities  under ERISA or Section 4975 of the Code)
in  addition  to those  undertaken  in this Trust  Agreement,  which  Opinion of
Counsel  shall  not be an  expense  of the  Depositor,  the Owner  Trustee,  the
Certificate Registrar,  the Enhancer or the Servicer. In lieu of such Opinion of
Counsel,  a Plan,  any Person acting,  directly or indirectly,  on behalf of any
such Plan or any Person acquiring such  Certificates  with Plan Assets of a Plan
may provide a  certification  in the form of Exhibit G to this Trust  Agreement,
which  the  Depositor,   the  Owner  Trustee,  the  Certificate  Registrar,  the
Certificate Paying Agent, the Indenture Trustee,  the Paying Agent, the Enhancer
and the Servicer may rely upon without further inquiry or investigation. Neither
an Opinion of Counsel nor a  certification  will be required in connection  with
the initial transfer of any such Certificate by the Depositor to an Affiliate of
the  Depositor  (in which case,  the  Depositor or any such  Affiliate  shall be
deemed  to have  represented  that  such  Affiliate  is not a Plan  or a  Person
investing  Plan Assets of any Plan) and the Owner  Trustee  shall be entitled to
conclusively  rely upon a representation  (which,  upon the request of the Owner
Trustee, shall be a written  representation) from the Depositor of the status of
such transferee as an Affiliate of the Depositor.

     In addition,  no transfer of a Certificate shall be permitted,  and no such
transfer  shall be  registered  by the  Certificate  Registrar  or be  effective
hereunder,   unless  evidenced  by  an  Opinion  of  Counsel  addressed  to  the
Certificate Registrar,  the Servicer and the Enhancer that establishes that such
transfer or the  registration  of such transfer  would not cause the Trust to be
classified  as  a  publicly  traded   partnership,   by  having  more  than  100
Certificateholders  at any  time  during  the  taxable  year  of the  Trust,  an
association  taxable as a corporation,  a corporation or a taxable mortgage pool
for federal and relevant  state income tax  purposes,  which  Opinion of Counsel
shall not be an expense of the Certificate  Registrar and shall be an expense of
the proposed transferee. No Opinion of Counsel will be required if such transfer
is made to a nominee of an existing beneficial holder of a Certificate.

     In addition, no transfer, sale, assignment,  pledge or other disposition of
a  Certificate  shall  be  made  unless  the  proposed   transferee  executes  a
representation  letter  substantially in the form of Exhibit H hereto,  that (1)
the  transferee  is  acquiring  such  Certificate  for its own behalf and is not
acting as agent or custodian for any other Person or entity in  connection  with
such acquisition and (2) if the transferee is a partnership,  grantor trust or S
corporation for federal income tax purposes,  the Certificates  acquired are not
more than 50% of the assets of the partnership, grantor trust or S corporation.

     Section 3.10 Mutilated,  Destroyed, Lost or Stolen Certificates. If (a) any
mutilated Certificate shall be surrendered to the Certificate  Registrar,  or if
the  Certificate  Registrar  shall

                                       14

<PAGE>

receive evidence to its  satisfaction of the  destruction,  loss or theft of any
Certificate and (b) there shall be delivered to the Certificate  Registrar,  the
Indenture  Trustee and the Owner  Trustee  such  security or indemnity as may be
required  by them to save each of them and the  Issuer  from  harm,  then in the
absence of notice to the  Certificate  Registrar,  the Indenture  Trustee or the
Owner Trustee that such  Certificate has been acquired by a bona fide purchaser,
the Owner  Trustee on behalf of the Trust shall execute and the Owner Trustee or
the Indenture Trustee, as the Trust's  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 tenor and  denomination.  In
connection with the issuance of any new Certificate under this Section 3.10, the
Owner Trustee,  the Indenture  Trustee or the Certificate  Registrar may require
the payment of a sum  sufficient to cover any tax or other  governmental  charge
that may be imposed in connection  therewith.  Any duplicate  Certificate issued
pursuant to this Section 3.10 shall constitute  conclusive evidence of ownership
in the  Trust,  as if  originally  issued,  whether  or not the lost,  stolen or
destroyed Certificate shall be found at any time.

     Section 3.11 Persons Deemed  Certificateholders.  Prior to due presentation
of  a  Certificate  for  registration  of  transfer,   the  Owner  Trustee,  the
Certificate  Registrar or any  Certificate  Paying Agent may treat the Person in
whose name any  Certificate  is  registered in the  Certificate  Register as the
owner of such Certificate for the purpose of receiving distributions pursuant to
Section 5.02 and for all other purposes  whatsoever,  and none of the Trust, the
Owner Trustee,  the Certificate  Registrar or the Certificate Paying Agent shall
be bound by any notice to the contrary.

     Section 3.12 Access to List of Certificateholders' Names and Addresses. The
Certificate Registrar shall furnish or cause to be furnished to the Depositor or
the Owner Trustee,  within 15 days after receipt by the Certificate Registrar of
a written request  therefor from the Depositor or the Owner Trustee,  a list, in
such  form as the  Depositor  or the  Owner  Trustee,  as the case  may be,  may
reasonably require, of the names and addresses of the  Certificateholders  as of
the most recent Record Date. If three or more Certificateholders, or one or more
Certificateholders  evidencing not less than 25% of the  Certificate  Percentage
Interest,  apply in writing to the Owner Trustee or the  Certificate  Registrar,
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  such  application  is  accompanied  by  a  copy  of  the
communication that such applicants  propose to transmit,  then the Owner Trustee
shall,  within five (5)  Business  Days after the  receipt of such  application,
afford such  applicants  access during normal business hours to the current list
of  Certificateholders.  Each  Certificateholder,  by  receiving  and  holding a
Certificate,  shall be deemed to have  agreed not to hold any of the Trust,  the
Depositor,  the Certificate Registrar, the Certificate Paying Agent or the Owner
Trustee  accountable  by  reason  of the  disclosure  of its name  and  address,
regardless of the source from which such information was derived.

     Section 3.13 Maintenance of Office or Agency. The Owner Trustee,  on behalf
of the Trust,  shall  maintain an office or offices or agency or agencies  where
Certificates  may be surrendered  for  registration  of transfer or exchange and
where  notices  and  demands  to or upon the Owner  Trustee  in  respect  of the
Certificates and the Basic Documents may be served.  The Owner Trustee initially
designates  the  Corporate  Trust Office of the  Certificate  Registrar (or such
other office as the  Certificate  Registrar may specify to the Owner Trustee) as
its office for

                                       15

<PAGE>

such  purposes.  The Owner  Trustee  shall  give  prompt  written  notice to the
Depositor, the Certificateholders, the Indenture Trustee and the Enhancer of any
change in the location of the Certificate Register or any such office or agency.

     Section 3.14 Certificate Paying Agent.

     (a)  The   Certificate   Paying   Agent   shall   make   distributions   to
Certificateholders  from the  Distribution  Account  on  behalf  of the Trust in
accordance with the provisions of the  Certificates and Section 5.01 hereof from
payments  remitted to the Certificate  Paying Agent by the Paying Agent pursuant
to Section 3.05 of the Indenture.  The Trust hereby appoints the Paying Agent as
the Certificate Paying Agent. The Certificate Paying Agent shall:

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

          (ii) give the Owner  Trustee  notice  of any  default  by the Trust of
which a Responsible Officer of the Certificate Paying Agent has actual knowledge
in  the  making  of  any  payment  required  to be  made  with  respect  to  the
Certificates;

          (iii) at any time during the continuance of any such default, upon the
written  request of the Owner  Trustee,  forthwith  pay to the Owner  Trustee on
behalf of the Trust all sums so held in trust by such Certificate Paying Agent;

          (iv) immediately  resign as Certificate Paying Agent and forthwith pay
to the Owner Trustee on behalf of the Trust all sums held by it in trust for the
payment of  Certificates  if at any time it ceases to act as Paying  Agent under
the  Indenture or meet the  standards  required to be met by the Paying Agent at
the time of its appointment under the Indenture;

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

          (vi)  make  available  to the Owner  Trustee  a copy of the  Servicing
Certificate  prepared with respect to each Payment Date by the Servicer pursuant
to Section 4.01 of the Servicing Agreement.

     (b) The Trust may revoke such power and remove the Certificate Paying Agent
if the Owner Trustee  determines  in its sole  discretion  that the  Certificate
Paying  Agent  shall have  failed to perform  its  obligations  under this Trust
Agreement in any material respect. The Paying Agent shall be permitted to resign
as  Certificate  Paying Agent upon 30 days' written  notice to the Owner Trustee
and the Enhancer;  provided, however, that the Paying Agent is also resigning as
Paying  Agent  under the  Indenture  at such time.  In the event that the Paying
Agent shall no longer be the Certificate Paying Agent under this Trust Agreement
and  Paying  Agent  under the  Indenture,  the  Owner  Trustee  shall  appoint a
successor  to act as  Certificate  Paying  Agent (which shall be a bank or trust
company) and which shall also be the successor Paying

                                       16

<PAGE>

Agent  under the  Indenture.  The  Owner  Trustee  shall  cause  such  successor
Certificate Paying Agent or any additional Certificate Paying Agent appointed by
the Owner  Trustee to execute and deliver to the Owner  Trustee an instrument to
the effect  set forth in this  Section  3.14 as it  relates  to the  Certificate
Paying Agent.  The Certificate  Paying Agent shall return all unclaimed funds to
the Trust and upon removal of a Certificate Paying Agent such Certificate Paying
Agent shall also return all funds in its possession to the Trust. The provisions
of Sections 6.01, 6.04 and 7.01 shall apply to the  Certificate  Paying Agent to
the extent applicable.  Any reference in this Trust Agreement to the Certificate
Paying  Agent shall  include any  co-paying  agent  unless the context  requires
otherwise.

     (c) The  Certificate  Paying Agent shall establish and maintain with itself
the Distribution Account in which the Certificate Paying Agent shall deposit, on
the same day as it is  received  from the  Servicer,  the  Indenture  Trustee or
Paying Agent,  each  remittance  received by the  Certificate  Paying Agent with
respect to payments made  pursuant to the Indenture or the Servicing  Agreement.
Pending any such distribution,  funds deposited in the Distribution Account on a
Payment Date and not distributed to the  Certificateholders on such Payment Date
shall be invested  by the  Certificate  Paying  Agent in  Permitted  Investments
selected  by the  Servicer  (or if no  selection  is  made  by the  Servicer  in
Permitted  Investments  described  in  clause  (v)  of the  definition  thereof)
maturing no later than the Business Day  preceding the next  succeeding  Payment
Date (except that any investment in the institution  with which the Distribution
Account is  maintained  may mature or be payable on demand on such  Payment Date
and shall not be sold or  disposed  of prior to the  maturity).  All  investment
income earned in respect of funds on deposit in the  Distribution  Account shall
be  credited to the  Distribution  Account,  except that an amount  equal to one
day's  interest  on  any  such  investment  shall  be  for  the  benefit  of the
Certificate  Paying  Agent.  A portion of any losses  incurred in respect of any
such  investments  shall  be  deposited  in  the  Distribution  Account  by  the
Certificate  Paying  Agent out of its own funds  immediately  as  realized in an
amount such that the  percentage of any such loss  allocated to the  Certificate
Paying Agent shall equal a fraction,  the  numerator of which equals one (1) and
the denominator of which equals the number of days the funds in the Distribution
Account were invested in such investment. The remainder of any such losses shall
be charged against the Distribution  Account. The Certificate Paying Agent shall
make all  distributions  on the  Certificates as provided in Section 3.05 of the
Indenture and Section  5.01(a) of this Trust Agreement from moneys on deposit in
the Distribution Account.

     Section  3.15.  Cooperation.  The  Owner  Trustee  shall  cooperate  in all
respects with any  reasonable  request by the Enhancer for action to preserve or
enforce the  Enhancer's  rights or interest  under this Trust  Agreement  or the
Insurance  Agreement,  consistent with this Trust Agreement and without limiting
the rights of the  Certificateholders  as otherwise  expressly set forth in this
Trust Agreement.

     Section 3.16. [Reserved].

     Section  3.17.  Subordination.  Except as  otherwise  provided in the Basic
Documents,   for  so  long  as  any  Notes  are   outstanding  or  unpaid,   the
Certificateholders will generally be subordinated in right of payment, under the
Certificates or otherwise,  to payments to the  Noteholders  under, or otherwise
related to, the Indenture. If an Event of Default has occurred and is continuing
under the Indenture,  the Certificates will be fully subordinated to obligations

                                       17

<PAGE>

owing by the Trust to the  Noteholders  and the  Enhancer  under,  or  otherwise
related to, the Indenture, and no distributions will be made on the Certificates
until the  Noteholders,  the Paying Agent,  the Note Registrar,  the Certificate
Paying  Agent,  the  Certificate  Registrar  and the  Indenture  Trustee and the
Enhancer have been irrevocably paid in full.

     Section 3.18. No Priority Among Certificates.  All Certificateholders shall
rank equally as to amounts  distributable  upon the liquidation,  dissolution or
winding up of the Trust,  with no preference or priority  being  afforded to any
Certificateholders over any other Certificateholders.

                                   ARTICLE IV

                     Authority and Duties of Owner Trustee

     Section  4.01.  General  Authority.  The Owner  Trustee is  authorized  and
directed to execute and deliver the Basic  Documents to which the Trust is to be
a party and each  certificate  or other  document  attached  as an exhibit to or
contemplated by the Basic Documents to which the Trust is to be a party, as well
as any certificate that supports the factual  assumptions made in any Opinion of
Counsel  delivered on the Closing Date, and any amendment or other  agreement or
instrument  described  herein,  in each case,  in such form as the Owner Trustee
shall  approve,  as  evidenced  conclusively  by the Owner  Trustee's  execution
thereof.  In addition to the  foregoing,  the Owner Trustee is obligated to take
all actions required of the Trust pursuant to the Basic Documents.

     Section 4.02.  General  Duties.  The Owner Trustee shall be  responsible to
administer the Trust pursuant to the terms of this Trust Agreement and the other
Basic  Documents  to which  the  Trust  is a party  and in the  interest  of the
Certificateholders,  subject to the Basic  Documents and in accordance  with the
provisions of this Trust Agreement.

     Section 4.03. Action upon Instruction.

     (a) Subject to this  Article IV and Section  10.13 of this Trust  Agreement
and in accordance with the terms of the Basic Documents,  the Certificateholders
may by written  instruction  direct the Owner  Trustee in the  management of the
Trust. Such direction may be exercised at any time by written instruction of the
Certificateholders pursuant to this Article IV.

     (b) Notwithstanding the foregoing,  the Owner Trustee shall not be required
to take any action  hereunder or under any Basic  Document if the Owner  Trustee
shall have reasonably  determined,  or shall have been advised by counsel,  that
such action is likely to result in liability on the part of the Owner Trustee or
is contrary to the terms  hereof or of any other Basic  Document or is otherwise
contrary to law.

     (c)  Whenever  the Owner  Trustee is unable to decide  between  alternative
courses of action  permitted or required by the terms of this Trust Agreement or
under any other Basic Document, or in the event that the Owner Trustee is unsure
as to the  application  of any  provision  of this Trust  Agreement or any other
Basic Document or any such provision is ambiguous as to its application,  or is,
or appears to be, in conflict  with any other  applicable  provision,  or in the
event that this Trust Agreement  permits any  determination by the Owner Trustee
or is silent or is  incomplete as to the course of action that the Owner Trustee
is required

                                       18

<PAGE>

to take with  respect to a  particular  set of facts,  the Owner  Trustee  shall
promptly  give  notice  (in  such  form  as  shall  be  appropriate   under  the
circumstances)  to  the  Certificateholders   (with  a  copy  to  the  Enhancer)
requesting  instruction  as to the  course of action to be  adopted,  and to the
extent the Owner  Trustee  acts in good  faith in  accordance  with any  written
instructions  received from  Certificateholders  of Certificates  representing a
majority of the aggregate  Certificate  Percentage Interest of the Certificates,
the Owner  Trustee  shall not be liable on account of such action to any Person.
If the Owner Trustee shall not have received  appropriate  instruction within 10
days of such notice (or within such shorter  period of time as reasonably may be
specified in such notice or may be necessary  under the  circumstances)  it may,
but shall be under no duty to,  take or  refrain  from  taking  such  action not
inconsistent with this Trust Agreement or the other Basic Documents, as it shall
deem to be in the  best  interests  of the  Certificateholders,  and  the  Owner
Trustee shall have no liability to any Person for such action or inaction.

     Section 4.04. No Duties Except as Specified under Specified Documents or in
Instructions. The Owner Trustee shall not have any duty or obligation to manage,
make any  payment  with  respect  to,  register,  record,  sell,  dispose of, or
otherwise  deal with the Trust  Estate,  or to  otherwise  take or refrain  from
taking any action under, or in connection with, any document contemplated hereby
to which the Owner  Trustee  is a party,  except as  expressly  provided  (i) in
accordance with the powers granted to and the authority conferred upon the Owner
Trustee  pursuant to this Trust  Agreement,  (ii) in  accordance  with the Basic
Documents and (iii) in accordance with any document or instruction  delivered to
the Owner Trustee pursuant to Section 4.03; and no implied duties or obligations
shall be read into this Trust Agreement or any other Basic Document  against the
Owner  Trustee.  The Owner Trustee shall have no  responsibility  for filing any
financing  or  continuation  statement  in any  public  office at any time or to
otherwise  perfect or maintain the  perfection of any security  interest or lien
granted to it hereunder or to prepare or file any filing with the Commission for
the Trust or to record this Trust  Agreement  or any other Basic  Document.  The
Owner  Trustee  nevertheless  agrees that it will,  at its own cost and expense,
promptly  take all action as may be necessary to discharge any liens on any part
of the Trust  Estate that result from actions by, or claims  against,  the Owner
Trustee that are not related to the ownership or the administration of the Trust
Estate.

     Section 4.05. Restrictions.

     (a) The Owner  Trustee  shall not take any action (i) that is  inconsistent
with the  purposes of the Trust set forth in Section  2.03 or (ii) that,  to the
actual knowledge of the Owner Trustee, would cause the Trust to be treated as an
association  (or a  publicly-traded  partnership)  taxable as a corporation or a
taxable mortgage pool for federal income tax purposes or at any time that any of
the Notes or  Certificates  are outstanding or any obligations are due and owing
to the Enhancer under the Insurance Agreement.  The Certificateholders shall not
direct the Owner  Trustee to take action that would  violate the  provisions  of
this Section 4.05.

     (b) The Owner  Trustee  shall not  convey or  transfer  any of the  Trust's
properties  or assets,  including  those  included in the Trust  Estate,  to any
person  unless  (i) it shall have  received  an Opinion of Counsel to the effect
that such  transaction will not have any material adverse tax consequence to the
Trust or any  Certificateholder  and (ii) such  conveyance or transfer shall not
violate the provisions of Section 3.16(b) of the Indenture.

                                       19

<PAGE>

     Section  4.06.  Prior Notice to  Certificateholders  and the Enhancer  with
Respect to Certain  Matters.  With respect to the following  matters,  the Owner
Trustee shall not take action unless, at least 30 days before the taking of such
action,  the Owner Trustee shall have  notified the  Certificateholders  and the
Enhancer  in  writing  of  the   proposed   action  and  the  Enhancer  and  the
Certificateholders  of  Certificates  representing  a majority of the  aggregate
Certificate  Percentage Interest of the Certificates shall not have notified the
Owner  Trustee in writing  prior to the 30th day after such notice is given that
such Certificateholders have withheld consent or provided alternative direction:

     (a) the  initiation  of any  Proceeding  by the Trust  (except  Proceedings
brought in connection  with the collection of cash  distributions  due and owing
under the Mortgage  Loans) and the  compromise of any  Proceeding  brought by or
against the Trust  (except with respect to the  aforementioned  Proceedings  for
collection of cash distributions due and owing under the Mortgage Loans);

     (b) the election by the Trust to file an amendment  to the  Certificate  of
Trust (unless such  amendment is required to be filed under the Statutory  Trust
Statute);

     (c) the amendment of any of the Basic Documents in circumstances  where the
consent of any Noteholder is required;

     (d) the amendment of any of the Basic Documents in circumstances  where the
consent of any  Noteholder  is not required and such  amendment  materially  and
adversely affects the interest of the Certificateholders;

     (e)  the  appointment  pursuant  to  the  Indenture  of  a  successor  Note
Registrar, Paying Agent or Indenture Trustee or pursuant to this Trust Agreement
of a successor  Certificate Registrar or Certificate Paying Agent or the consent
to the  assignment  by the Note  Registrar,  Paying  Agent,  Indenture  Trustee,
Certificate  Registrar or Certificate  Paying Agent of its obligations under the
Indenture or this Trust Agreement, as applicable.

     Section 4.07. Action by Certificateholders with Respect to Certain Matters.
The Owner Trustee shall not have the power, except upon the written direction of
Certificateholders  evidencing  not  less  than  a  majority  of  the  aggregate
Certificate Percentage Interest of the Certificates, and with the consent of the
Enhancer,  to (a) remove the Servicer under the Servicing  Agreement pursuant to
Section 7.01 thereof or (b) except as expressly provided in the Basic Documents,
sell the Mortgage Loans after the termination of the Indenture.

     Section 4.08. Action by Certificateholders with Respect to Bankruptcy.  The
Owner  Trustee  shall not have the power to commence a voluntary  Proceeding  in
bankruptcy  relating to the Trust  without the unanimous  prior  approval of all
Certificateholders,  and with the prior written consent of the Enhancer, and the
delivery to the Owner  Trustee by each such  Certificateholder  of a certificate
certifying  that such  Certificateholder  reasonably  believes that the Trust is
insolvent.

     Section   4.09.    Restrictions   on    Certificateholders'    Power.   The
Certificateholders shall not direct the Owner Trustee to take or to refrain from
taking any action if such action or inaction would be contrary to any obligation
of the Trust or the Owner Trustee under this Trust

                                       20

<PAGE>

Agreement  or any of the other Basic  Documents  or would be contrary to Section
2.03, nor shall the Owner Trustee be obligated to follow any such direction,  if
given.

     Section 4.10.  Majority Control.  Except as expressly  provided herein, any
action that may be taken by the  Certificateholders  under this Trust  Agreement
may be taken by the Certificateholders of Certificates  evidencing not less than
a majority of the aggregate Certificate Percentage Interest of the Certificates.
Except   as   expressly   provided   herein,   any   written   notice   of   the
Certificateholders delivered pursuant to this Trust Agreement shall be effective
if signed by the  Certificateholders  evidencing not less than a majority of the
aggregate Certificate Percentage Interest of the Certificates at the time of the
delivery of such notice.

     Section  4.11.  Doing  Business  in  Other  Jurisdictions.  Notwithstanding
anything contained herein to the contrary,  neither Wilmington Trust Company nor
the Owner Trustee shall be required to take any action in any jurisdiction other
than in the State of Delaware if the taking of such action will,  even after the
appointment of a co-trustee or separate  trustee in accordance with Section 9.05
hereof,  (i) require the consent or approval or authorization or order of or the
giving of notice to, or the registration  with or the taking of any other action
in  respect  of,  any  state or other  governmental  authority  or agency of any
jurisdiction  other than the State of  Delaware;  (ii) result in any fee, tax or
other  governmental  charge  under  the laws of the State of  Delaware  becoming
payable by Wilmington Trust Company,  or (iii) subject  Wilmington Trust Company
to personal  jurisdiction in any  jurisdiction  other than the State of Delaware
for causes of action  arising  from acts  unrelated to the  consummation  of the
transactions by Wilmington  Trust Company or the Owner Trustee,  as the case may
be, contemplated hereby.

     Section 4.12. Removal of Mortgage Loans.  Subject to and in accordance with
Section 3.22 of the Servicing Agreement, the Issuer may notify the Owner Trustee
of its direction to the Servicer to remove Mortgage Loans from the Trust Estate.
Promptly following receipt of any such request,  the Owner Trustee shall deliver
to the Servicer the written  notice and request  required to be delivered to the
Servicer pursuant to Section 3.22 of the Servicing Agreement. Any Mortgage Loans
removed  from  the  Trust  Estate  pursuant  to  Section  3.22 of the  Servicing
Agreement  shall be property of the Issuer and, upon the written  request of the
Certificateholders  holding 100% of the Certificate  Percentage Interests of the
Certificates,  be  released  to  the  Certificateholders  as a  dividend  and in
accordance with the written instructions of such Certificateholders.

                                   ARTICLE V

                           Application of Trust Funds

     Section 5.01. Distributions.

     (a) On each Payment  Date and on any date on which the Trust is  terminated
pursuant to Section 8.01, the Certificate  Paying Agent shall  distribute to the
Certificateholders  all  funds  on  deposit  in  the  Distribution  Account  and
available   therefor  as  provided  in  Section  3.05  of  the  Indenture.   All
distributions  made  pursuant  to this  Section  to any  Certificates  shall  be
distributed  to  the   Certificateholders  pro  rata  based  on  the  respective
Percentage Interests thereof.

                                       21

<PAGE>

     (b) In the event that any withholding  tax is imposed on the  distributions
(or  allocations  of income) to a  Certificateholder,  such tax shall reduce the
amount otherwise distributable to such Certificateholder in accordance with this
Section 5.01. The Certificate  Paying Agent is hereby authorized and directed to
retain or cause to be  retained  from  amounts  otherwise  distributable  to the
Certificateholders  sufficient  funds for the payment of any tax that is legally
owed by the Trust (but such  authorization  shall not prevent the Owner  Trustee
from contesting any such tax in appropriate Proceedings, and withholding payment
of such tax, if permitted by law, pending the outcome of such Proceedings).  The
amount of any withholding tax imposed with respect to a Certificateholder  shall
be  treated  as cash  distributed  to such  Certificateholder  at the time it is
withheld by the Certificate  Paying Agent and remitted to the appropriate taxing
authority.  If there is a  possibility  that  withholding  tax is  payable  with
respect   to  a   distribution   (such   as  a   distribution   to  a   non-U.S.
Certificateholder),  the  Certificate  Paying  Agent may in its sole  discretion
withhold such amounts in accordance with this paragraph (b).

     (c)  Distributions  to  Certificateholders  shall  be  subordinated  to the
creditors of the Trust, including the Noteholders.

     Section 5.02. Method of Payment. Subject to Section 8.01(c),  distributions
required to be made to  Certificateholders  on any  Payment  Date as provided in
Section 5.01 shall be made to each  Certificateholder of record on the preceding
Record Date by wire transfer,  in immediately available funds, to the account of
each  Certificateholder at a bank or other entity having appropriate  facilities
therefor,  if such  Certificateholder  shall have  provided  to the  Certificate
Registrar  appropriate written instructions at least five Business Days prior to
such Payment Date.

     Section 5.03.  Signature on Returns.  The Servicer  shall sign on behalf of
the Trust the tax returns, if any, of the Trust.

     Section 5.04. Statements to  Certificateholders.  On each Payment Date, the
Certificate  Paying  Agent shall make  available to each  Certificateholder  the
Servicing  Certificate  provided to the Owner Trustee and the Certificate Paying
Agent by the Servicer  pursuant to Section 4.01 of the Servicing  Agreement with
respect to such Payment Date.

     Section 5.05. Tax Reporting.  The Certificateholders by their acceptance of
a Certificate, agree to appoint the Servicer as their agent and the Servicer, as
agent for such holders under the Servicing Agreement,  has agreed to perform all
duties necessary to comply with federal and state income tax laws.

     Any  Certificateholder  that holds 100% of the  Certificates  agrees by its
purchase  of 100% of the  Certificates  to treat the  Trust  Estate as an entity
wholly owned by such  Certificateholder for purposes of federal and state income
tax,  franchise  tax and any other tax  measured  in whole or in part by income,
with the assets of the entity being the assets held by the Trust,  and the Notes
being debt of the Trust.

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<PAGE>

                                   ARTICLE VI

                          Concerning the Owner Trustee

     Section 6.01.  Acceptance of Trusts and Duties.  The Owner Trustee  accepts
the  trusts  hereby  created  and agrees to perform  its duties  hereunder  with
respect to such  trusts,  but only upon the terms of this Trust  Agreement.  The
Owner Trustee and the Certificate Paying Agent also agree to disburse all moneys
actually  received by it constituting part of the Trust Estate upon the terms of
this Trust Agreement and the other Basic Documents to which each is a party. The
Owner  Trustee shall not be  answerable  or  accountable  hereunder or under any
Basic  Document  under  any  circumstances,  except  (i)  for  its  own  willful
misconduct,  negligence or bad faith or negligent  failure to act or (ii) in the
case of the inaccuracy of any  representation  or warranty  contained in Section
6.03  expressly  made by the Owner  Trustee.  In  particular,  but not by way of
limitation (and subject to the exceptions set forth in the preceding sentence):

     (a) no provision of this Trust  Agreement or any other Basic Document shall
require  the  Owner  Trustee  to  expend or risk  funds or  otherwise  incur any
financial  liability in the  performance of any of its rights,  duties or powers
hereunder  or under any other  Basic  Document if the Owner  Trustee  shall have
reasonable  grounds  for  believing  that  repayment  of such funds or  adequate
indemnity  against such risk or liability is not reasonably  assured or provided
to it;

     (b)  under  no  circumstances   shall  the  Owner  Trustee  be  liable  for
indebtedness evidenced by or arising under any of the Basic Documents, including
the principal of and interest on the Notes;

     (c) the Owner  Trustee  shall not be  responsible  for or in respect of the
validity or sufficiency of this Trust Agreement or for the due execution  hereof
by the Depositor for the form,  character,  genuineness,  sufficiency,  value or
validity  of any of the Trust  Estate,  or for or in respect of the  validity or
sufficiency of the Basic Documents, the Notes, the Certificates,  other than the
certificate  of  authentication  on the  Certificates,  if executed by the Owner
Trustee and the Owner Trustee  shall in no event assume or incur any  liability,
duty, or obligation to any Noteholder or to any Certificateholder, other than as
expressly provided for herein or in the other Basic Documents;

     (d) the execution,  delivery,  authentication  and performance by the Owner
Trustee of this Trust Agreement will not require the  authorization,  consent or
approval of, the giving of notice to, the filing or  registration  with,  or the
taking of any other  action  with  respect  to, any  governmental  authority  or
agency;

     (e) the Owner  Trustee shall not be liable for the default or misconduct of
the Depositor, Indenture Trustee, the Certificate Paying Agent, the Paying Agent
or the Servicer  under any of the Basic  Documents  or  otherwise  and the Owner
Trustee shall have no obligation or liability to perform the  obligations of the
Certificate  Paying Agent,  the Paying  Agent,  the Depositor or the Trust under
this Trust  Agreement  or the other  Basic  Documents  that are  required  to be
performed by the  Indenture  Trustee or the Paying Agent under the  Indenture or
the Seller under the Purchase Agreement; and

                                       23

<PAGE>

     (f) the Owner  Trustee  shall be under no obligation to exercise any of the
rights or powers vested in it or duties imposed by this Trust  Agreement,  or to
institute,  conduct or defend any  litigation  under  this  Trust  Agreement  or
otherwise or in relation to this Trust Agreement or any other Basic Document, at
the request,  order or direction of any of the  Certificateholders,  unless such
Certificateholders  have  offered to the Owner  Trustee  security  or  indemnity
satisfactory  to it against  the costs,  expenses  and  liabilities  that may be
incurred by the Owner Trustee therein or thereby. The right of the Owner Trustee
to perform any  discretionary  act enumerated in this Trust  Agreement or in any
other Basic  Document  shall not be construed as a duty,  and the Owner  Trustee
shall not be  answerable  for other  than its  negligence,  bad faith or willful
misconduct in the performance of any such act.

     Section 6.02.  Furnishing of Documents.  The Owner Trustee shall furnish to
the  Securityholders  promptly  upon  receipt  of a written  reasonable  request
therefor,  duplicates  or copies of all  reports,  notices,  requests,  demands,
certificates,  financial  statements and any other instruments  furnished to the
Trust under the Basic Documents other than any Yield Maintenance Agreement.

     Section 6.03.  Representations  and  Warranties.  The Owner Trustee  hereby
represents   and   warrants   to  the   Depositor,   for  the   benefit  of  the
Certificateholders, that:

     (a) It is a banking corporation duly organized and validly existing in good
standing under the laws of the State of Delaware. It has all requisite corporate
power and authority to execute,  deliver and perform its obligations  under this
Trust Agreement;

     (b) It has taken all corporate  action necessary to authorize the execution
and delivery by it of this Trust  Agreement,  and this Trust  Agreement  will be
executed and delivered by one of its officers who is duly  authorized to execute
and deliver this Trust Agreement on its behalf;

     (c) Neither the execution  nor the delivery by it of this Trust  Agreement,
nor  the  consummation  by  it  of  the  transactions  contemplated  hereby  nor
compliance by it with any of the terms or provisions  hereof will contravene any
federal or Delaware law,  governmental rule or regulation  governing the banking
or trust powers of the Owner  Trustee or any judgment or order binding on it, or
constitute  any default under its charter  documents or bylaws or any indenture,
mortgage,  contract,  agreement or instrument to which it is a party or by which
any of its properties may be bound;

     (d)  This  Trust  Agreement,  assuming  due  authorization,  execution  and
delivery by the Owner Trustee and the Depositor,  constitutes a valid, legal and
binding  obligation of the Owner Trustee,  enforceable  against it in accordance
with  the  terms   hereof   subject  to   applicable   bankruptcy,   insolvency,
reorganization,   moratorium  and  other  laws  affecting  the   enforcement  of
creditors' rights generally and to general  principles of equity,  regardless of
whether such enforcement is considered in a proceeding in equity or at law;

     (e) The Owner Trustee is not in default with respect to any order or decree
of any court or any order, regulation or demand of any federal, state, municipal
or  governmental  agency,  which  default  might  have  consequences  that would
materially and adversely affect the

                                       24

<PAGE>

condition  (financial  or  other) or  operations  of the  Owner  Trustee  or its
properties or might have consequences that would materially adversely affect its
performance hereunder; and

     (f) No  litigation  is  pending  or,  to the  best of the  Owner  Trustee's
knowledge,  threatened  against  the Owner  Trustee  which  would  prohibit  its
entering into this Trust  Agreement or  performing  its  obligations  under this
Trust Agreement.

     Section 6.04. Reliance; Advice of Counsel.

     (a) The Owner Trustee shall incur no liability to anyone in acting upon any
signature, instrument, notice, resolution, request, consent, order, certificate,
report,  opinion,  bond, or other document or paper believed by it to be genuine
and  believed  by it to be  signed by the  proper  party or  parties.  The Owner
Trustee may accept a certified copy of a resolution of the board of directors or
other  governing  body of any corporate  party as conclusive  evidence that such
resolution has been duly adopted by such body and that the same is in full force
and effect. As to any fact or matter the method of determination of which is not
specifically  prescribed  herein,  the Owner Trustee may for all purposes hereof
rely on a  certificate,  signed by the president or any vice president or by the
treasurer or other authorized officers of the relevant party, as to such fact or
matter  and such  certificate  shall  constitute  full  protection  to the Owner
Trustee  for any  action  taken or  omitted  to be taken by it in good  faith in
reliance thereon.

     (b) In the exercise or  administration  of the Trust  hereunder  and in the
performance  of its duties and  obligations  under this Trust  Agreement  or the
other Basic  Documents,  the Owner  Trustee (i) may act  directly or through its
agents,  attorneys,  custodians or nominees  (including  persons  acting under a
power of attorney) pursuant to agreements entered into with any of them, and the
Owner  Trustee shall not be liable for the conduct or misconduct of such agents,
attorneys,  custodians or nominees  (including  persons  acting under a power of
attorney)  if  such  persons  have  been  selected  by the  Owner  Trustee  with
reasonable  care,  and (ii) may  consult  with  counsel,  accountants  and other
skilled  persons to be selected with  reasonable  care and employed by it at the
expense of the Trust.  The Owner Trustee shall not be liable for anything  done,
suffered or omitted in good faith by it in accordance with the opinion or advice
of any such counsel,  accountants or other such Persons and not contrary to this
Trust Agreement or any other Basic Document.

     Section 6.05. Not Acting in Individual Capacity. Except as provided in this
Article VI, in accepting the trusts hereby created Wilmington Trust Company acts
solely as Owner Trustee  hereunder and not in its individual  capacity,  and all
Persons having any claim against the Owner Trustee by reason of the transactions
contemplated by this Trust Agreement or any other Basic Document shall look only
to the Trust Estate for payment or satisfaction thereof.

     Section  6.06.  Owner  Trustee  Not  Liable  for  Certificates  or  Related
Documents. The recitals contained herein and in the Certificates (other than the
signatures  of the  Owner  Trustee  on the  Certificates)  shall be taken as the
statements of the Depositor, and the Owner Trustee assumes no responsibility for
the correctness  thereof.  The Owner Trustee makes no  representations as to the
validity or sufficiency of this Trust Agreement,  of any other Basic Document or
of the  Certificates  (other  than the  signatures  of the Owner  Trustee on the
Certificates) or the Notes, or of any Related Documents. The Owner Trustee shall
at no time

                                       25

<PAGE>

have any  responsibility  or liability  with respect to the  sufficiency  of the
Trust  Estate or its  ability to generate  the  payments  to be  distributed  to
Certificateholders  under  this Trust  Agreement  or the  Noteholders  under the
Indenture,  including,  the  compliance  by the Depositor or the Seller with any
warranty  or  representation  made under any Basic  Document  or in any  related
document or the accuracy of any such warranty or  representation,  or any action
of the Certificate Paying Agent, the Certificate Registrar,  the Paying Agent or
the Indenture Trustee taken in the name of the Owner Trustee.

     Section  6.07.  Owner  Trustee May Own  Certificates  and Notes.  The Owner
Trustee in its  individual or any other capacity may become the owner or pledgee
of  Certificates  or Notes  and may deal with the  Depositor,  the  Seller,  the
Certificate  Paying Agent, the Certificate  Registrar,  the Paying Agent and the
Indenture  Trustee in  transactions  with the same rights as it would have if it
were not Owner Trustee.

                                       26

<PAGE>

                                  ARTICLE VII

                         Compensation of Owner Trustee

     Section 7.01.  Owner  Trustee's Fees and Expenses.  The Owner Trustee shall
receive  as  compensation  for its  services  hereunder  such  fees as have been
separately agreed upon before the date hereof in accordance with Section 6.06 of
the Servicing  Agreement,  and the Owner  Trustee  shall be  reimbursed  for its
reasonable expenses hereunder and under the other Basic Documents, including the
reasonable   compensation,   expenses   and   disbursements   of  such   agents,
representatives,  experts and counsel as the Owner Trustee may reasonably employ
in  connection  with the exercise and  performance  of its rights and its duties
hereunder  and under the other  Basic  Documents  which  shall be payable by the
Servicer pursuant to Section 3.11 of the Servicing Agreement.

     Section 7.02.  Indemnification.  The  Certificateholders of the majority of
the Percentage  Interest of the Certificates  shall  indemnify,  defend and hold
harmless  the Owner  Trustee and its  successors,  assigns,  agents and servants
(collectively,  the  "Indemnified  Parties")  from  and  against,  any  and  all
liabilities, obligations, losses, damages, taxes, claims, actions and suits, and
any and all reasonable costs,  expenses and disbursements  (including reasonable
legal  fees  and  expenses)  of any kind and  nature  whatsoever  (collectively,
"Expenses")  which may at any time be  imposed  on,  incurred  by,  or  asserted
against the Owner  Trustee or any  Indemnified  Party in any way  relating to or
arising  out of this  Trust  Agreement,  the other  Basic  Documents,  the Trust
Estate,  the administration of the Trust Estate or the action or inaction of the
Owner Trustee hereunder; provided, however, that:

     (a) such Certificateholder shall not be liable for or required to indemnify
an  Indemnified  Party from and against  Expenses  arising or resulting from the
Owner Trustee's  willful  misconduct,  negligence or bad faith or as a result of
any  inaccuracy  of a  representation  or  warranty  contained  in Section  6.03
expressly made by the Owner Trustee;

     (b) with respect to any such claim, the Indemnified  Party shall have given
such  Certificateholder  written notice thereof  promptly after the  Indemnified
Party shall have actual knowledge thereof;

     (c) while maintaining control over its own defense, such  Certificateholder
shall consult with the Indemnified Party in preparing such defense; and

     (d) notwithstanding  anything in this Trust Agreement to the contrary, such
Certificateholder  shall  not  be  liable  for  settlement  of any  claim  by an
Indemnified   Party   entered   into   without   the  prior   consent   of  such
Certificateholder, which consent shall not be unreasonably withheld.

     The indemnities  contained in this Section shall survive the resignation or
termination of the Owner Trustee or the termination of this Trust Agreement.  In
the event of any Proceeding for which  indemnity may be sought  pursuant to this
Section 7.02, the Owner  Trustee's  choice of legal  counsel,  if other than the
legal counsel retained by the Owner Trustee in connection with the execution and
delivery  of this  Trust  Agreement,  shall be subject  to the  approval  of the

                                       27

<PAGE>

Certificateholder   of  the   majority  of  the   Percentage   Interest  of  the
Certificates,  which approval shall not be unreasonably  withheld.  In addition,
upon  written  notice to the Owner  Trustee  and with the  consent  of the Owner
Trustee, which consent shall not be unreasonably withheld, the Certificateholder
of the majority of the Percentage  Interest of the  Certificates  shall have the
right to assume the defense of any Proceeding against the Owner Trustee.

                                  ARTICLE VIII

                         Termination of Trust Agreement

     Section 8.01. Termination of Trust Agreement.

     (a) This Trust Agreement (other than this Article VIII) and the Trust shall
terminate  and be of no further force or effect upon the final  distribution  of
all moneys or other property or proceeds of the Trust Estate in accordance  with
the  terms  of  the  Indenture  and  this  Trust   Agreement.   The  bankruptcy,
liquidation, dissolution, death or incapacity of any Certificateholder shall not
(i) operate to terminate  this Trust  Agreement or the Trust,  (ii) entitle such
Certificateholder's  legal representatives or heirs to claim an accounting or to
take any  Proceeding  in any court for a  partition  or winding up of all or any
part of the Trust or the Trust  Estate or (iii)  otherwise  affect  the  rights,
obligations and liabilities of the parties hereto.

     (b) Except as provided in Section  8.01(a),  neither the  Depositor nor any
Certificateholder shall be entitled to revoke or terminate the Trust.

     (c) Notice of any termination of the Trust,  specifying the Payment Date on
which  Certificateholders  shall surrender their Certificates to the Certificate
Paying  Agent for payment of the final  distribution  thereon  and  cancellation
thereof,  shall be given  by the  Certificate  Paying  Agent  by  letter  to the
Certificateholders  and the Enhancer mailed within five Business Days of receipt
of notice of such  termination  from the Owner Trustee,  stating (i) the Payment
Date upon or with respect to which final  payment of the  Certificates  shall be
made upon  presentation  and surrender of the  Certificates at the office of the
Certificate Paying Agent therein  designated,  (ii) the amount of any such final
payment and (iii) that the Record Date otherwise applicable to such Payment Date
is not applicable,  payments being made only upon  presentation and surrender of
the  Certificates  at  the  office  of  the  Certificate  Paying  Agent  therein
specified.  The  Certificate  Paying  Agent  shall give such notice to the Owner
Trustee  and the  Certificate  Registrar  at the time  such  notice  is given to
Certificateholders.  Upon  presentation and surrender of the  Certificates,  the
Certificate  Paying Agent shall cause to be  distributed  to  Certificateholders
amounts distributable on such Payment Date pursuant to Section 5.01.

     In the event that all of the Certificateholders  shall not have surrendered
their  Certificates for cancellation  within six months after the date specified
in the above mentioned written notice, the Certificate Paying Agent shall give a
second written  notice to the remaining  Certificateholders  to surrender  their
Certificates for cancellation  and receive the final  distribution  with respect
thereto.  Subject to applicable laws with respect to escheat of funds, if within
one year  following the Payment Date on which final payment of the  Certificates
was to have been made pursuant to Section 5.01, all the  Certificates  shall not
have been surrendered for  cancellation,  the Certificate  Paying Agent may take
appropriate steps, or may appoint an agent to

                                       28

<PAGE>

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 that shall remain  subject to this Trust  Agreement.  Any
funds remaining in the  Distribution  Account after  exhaustion of such remedies
shall be distributed by the Certificate Paying Agent to the Certificateholder of
the  majority of the  Percentage  Interest of the  Certificates  with respect to
which such amounts are due.

     (d) Upon the winding up of the Trust and its termination, the Owner Trustee
shall cause the  Certificate of Trust to be cancelled by filing a certificate of
cancellation  with the Secretary of State in accordance  with the  provisions of
Section 3810(c) of the Statutory Trust Statute.

                                   ARTICLE IX

             Successor Owner Trustees and Additional Owner Trustees

     Section 9.01. Eligibility Requirements for Owner Trustee. The Owner Trustee
shall at all times be a corporation satisfying the provisions of Section 3807(a)
of the Statutory Trust Statute;  authorized to exercise  corporate trust powers;
having a combined  capital  and surplus of at least  $50,000,000  and subject to
supervision  or  examination  by  federal or state  authorities;  and having (or
having a parent that has) long-term debt obligations with a rating of at least A
by Moody's,  Standard & Poor's or Fitch, if rated by Fitch. If such  corporation
shall publish  reports of condition at least annually  pursuant to law or to the
requirements of the aforesaid  supervising or examining authority,  then for the
purpose of this Section,  the combined  capital and surplus of such  corporation
shall be deemed to be its combined  capital and surplus as set forth in its most
recent report of condition so  published.  In case at any time the Owner Trustee
shall cease to be eligible in  accordance  with the  provisions  of this Section
9.01,  the Owner  Trustee  shall resign  immediately  in the manner and with the
effect specified in Section 9.02.

     Section 9.02.  Replacement of Owner  Trustee.  The Owner Trustee may at any
time resign and be discharged  from the trusts hereby created by giving 30 days'
prior written notice thereof to the Enhancer,  the Indenture Trustee, the Paying
Agent  and the  Depositor.  Upon  receiving  such  notice  of  resignation,  the
Indenture  Trustee  shall  promptly  appoint a successor  Owner Trustee with the
consent of the Enhancer,  which consent shall not be unreasonably  withheld,  by
written  instrument,  in  duplicate,  one  copy of  which  instrument  shall  be
delivered to the resigning  Owner  Trustee and one copy to the  successor  Owner
Trustee.  If no successor  Owner  Trustee  shall have been so appointed and have
accepted  appointment  within  30  days  after  the  giving  of such  notice  of
resignation,  the  resigning  Owner  Trustee may petition any court of competent
jurisdiction for the appointment of a successor Owner Trustee.

     If at any time the Owner  Trustee  shall cease to be eligible in accordance
with the  provisions  of  Section  9.01 and shall fail to resign  after  written
request therefor by the Indenture  Trustee (and the Indenture Trustee shall make
such request  upon (i) the written  direction  of the  Enhancer,  so long as the
Enhancer is not in default  under the Policy,  or (ii) the written  direction of
holders of Notes  representing  not less than a majority of the Note  Balance of
the Notes if the Enhancer is in default under the Policy), or if at any time the
Owner Trustee shall be legally  unable to act, or shall be adjudged  bankrupt or
insolvent,  or a  receiver  of the Owner  Trustee  or of

                                       29

<PAGE>

its property  shall be  appointed,  or any public  officer  shall take charge or
control of the Owner  Trustee or of its  property  or affairs for the purpose of
rehabilitation,  conservation  or liquidation,  then the Indenture  Trustee may,
and, at the direction of the Enhancer,  shall,  remove the Owner Trustee. If the
Indenture  Trustee  shall remove the Owner  Trustee  under the  authority of the
immediately  preceding sentence,  the Indenture Trustee shall promptly appoint a
successor  Owner  Trustee  reasonably  acceptable  to the  Enhancer  by  written
instrument, in duplicate, one copy of which instrument shall be delivered to the
outgoing  Owner Trustee so removed and one copy to the successor  Owner Trustee,
and shall pay all fees owed to the  outgoing  Owner  Trustee.  If the  Indenture
Trustee is unable to appoint a successor  Owner Trustee within 60 days after any
such  direction,  the  Indenture  Trustee may  petition  any court of  competent
jurisdiction for the appointment of a successor Owner Trustee.

     Any  resignation  or  removal of the Owner  Trustee  and  appointment  of a
successor Owner Trustee  pursuant to any of the provisions of this Section shall
not become  effective  until  acceptance of appointment  by the successor  Owner
Trustee  pursuant to Section 9.03 and payment of all fees and  expenses  owed to
the outgoing Owner Trustee.

     Section  9.03.   Successor  Owner  Trustee.  Any  successor  Owner  Trustee
appointed pursuant to Section 9.02 shall execute, acknowledge and deliver to the
Indenture  Trustee,  the Paying Agent and to its  predecessor  Owner  Trustee an
instrument accepting such appointment under this Trust Agreement,  and thereupon
the  resignation  or removal  of the  predecessor  Owner  Trustee  shall  become
effective,  and such successor  Owner Trustee,  without any further act, deed or
conveyance,  shall become fully vested with all the rights,  powers,  duties and
obligations of its predecessor  under this Trust Agreement,  with like effect as
if originally named as Owner Trustee.  The predecessor  Owner Trustee shall upon
payment of its fees and  expenses  deliver to the  successor  Owner  Trustee all
documents and statements and monies held by it under this Trust  Agreement;  and
the predecessor  Owner Trustee shall execute and deliver such instruments and do
such other things as may reasonably be required for fully and certainly  vesting
and confirming in the successor  Owner Trustee all such rights,  powers,  duties
and obligations.

     No successor  Owner  Trustee shall accept  appointment  as provided in this
Section 9.03 unless at the time of such  acceptance such successor Owner Trustee
shall be eligible pursuant to Section 9.01.

     Upon  acceptance of  appointment by a successor  Owner Trustee  pursuant to
this  Section  9.03,   the  Paying  Agent  shall  mail  notice  thereof  to  all
Certificateholders,  the Indenture Trustee, the Noteholders, the Rating Agencies
and the  Enhancer.  If the Paying Agent shall fail to mail such notice within 10
days after  acceptance of such  appointment by the successor Owner Trustee,  the
successor  Owner  Trustee shall cause such notice to be mailed at the expense of
the Paying Agent.

     Section 9.04.  Merger or  Consolidation  of Owner Trustee.  Any Person into
which the Owner  Trustee  may be merged  or  converted  or with  which it may be
consolidated,   or  any  Person   resulting  from  any  merger,   conversion  or
consolidation  to which  the  Owner  Trustee  shall be a  party,  or any  Person
succeeding to all or  substantially  all of the corporate  trust business of the
Owner Trustee,  shall be the successor of the Owner Trustee  hereunder,  without
the execution or filing of any  instrument or any further act on the part of any
of  the  parties  hereto,  anything  herein

                                       30

<PAGE>

to the contrary  notwithstanding;  provided,  however, that such Person shall be
eligible  pursuant to Section 9.01;  provided,  further,  that the Owner Trustee
shall mail notice of such merger or consolidation to the Rating Agencies.

     Section   9.05.    Appointment   of   Co-Trustee   or   Separate   Trustee.
Notwithstanding  any other provisions of this Trust Agreement,  at any time, for
the purpose of meeting any legal  requirements of any  jurisdiction in which any
part of the Trust  Estate may at the time be located,  the Owner  Trustee  shall
have the power and shall execute and deliver all  instruments  to appoint one or
more  Persons  to act as  co-trustee,  jointly  with the  Owner  Trustee,  or as
separate  trustee or trustees,  of all or any part of the Trust  Estate,  and to
vest in such  Person,  in such  capacity,  such  title to the  Trust or any part
thereof  and,  subject to the other  provisions  of this  Section,  such powers,
duties,  obligations,  rights  and  trusts as the  Owner  Trustee  may  consider
necessary or  desirable.  No  co-trustee  or separate  trustee  under this Trust
Agreement  shall be  required  to meet the terms of  eligibility  as a successor
Owner Trustee  pursuant to Section 9.01 and no notice of the  appointment of any
co-trustee or separate trustee shall be required pursuant to Section 9.03.

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

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

     (b) No trustee under this Trust  Agreement  shall be  personally  liable by
reason of any act or omission of any other trustee  under this Trust  Agreement;
and

     (c) The Owner Trustee may at any time accept the  resignation  of or remove
any separate trustee or co-trustee.

     Any notice,  request or other  writing  given to the Owner Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as  effectively  as if given to each of them.  Every  instrument  appointing any
separate  trustee or  co-trustee  shall  refer to this Trust  Agreement  and the
conditions of this Article IX. 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 Owner
Trustee or separately, as may be provided therein, subject to all the provisions
of this Trust  Agreement,  specifically  including every provision of this Trust
Agreement  relating to the conduct of,  affecting the liability of, or affording
protection to, the Owner Trustee.  Each such instrument  shall be filed with the
Owner Trustee.

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

                                       31

<PAGE>

                                   ARTICLE X

                                 Miscellaneous

     Section 10.01. Amendments.

     (a) This Trust  Agreement  may be amended  from time to time by the parties
hereto as specified in this Section  10.01,  provided  that any such  amendment,
except as provided in paragraph (e) below, shall be accompanied by an Opinion of
Counsel  addressed to the Owner Trustee and the Enhancer to the effect that such
amendment complies with the provisions of this Section.

     (b) If the  purpose  of any such  amendment  (as  detailed  therein)  is to
correct any mistake,  eliminate  any  inconsistency,  cure any ambiguity or deal
with any matter not covered in this Trust Agreement (i.e., to give effect to the
intent of the  parties),  it shall not be necessary to obtain the consent of any
Certificateholders,  but the Owner Trustee shall be furnished  with (i) a letter
from each Rating  Agency that the  amendment  will not result in a Rating Event,
determined  without  regard to the  Policy and (ii) an Opinion of Counsel to the
effect that such action will not  adversely  affect in any material  respect the
interests of any  Certificateholder,  and the consent of the  Enhancer  shall be
obtained.

     (c) If the purpose of the  amendment  is to prevent the  imposition  of any
federal  or state  taxes at any time that any  Security  is  outstanding  (i.e.,
technical  in nature),  it shall not be  necessary  to obtain the consent of any
Certificateholder,  but the Owner Trustee shall be furnished  with an Opinion of
Counsel that such amendment is necessary or helpful to prevent the imposition of
such  taxes  and is not  materially  adverse  to any  Certificateholder  and the
consent of the Enhancer shall be obtained.

     (d) If the purpose of the  amendment  is to add or  eliminate or change any
provision  of the Trust  Agreement  other  than as  contemplated  in (b) and (c)
above,  the  amendment  shall  require  (i) the consent of the  Enhancer  and an
Opinion of Counsel to the effect that such action will not  adversely  affect in
any material respect the interests of any  Certificateholder and (ii) either (A)
a letter from each Rating  Agency  that such  amendment  will not cause a Rating
Event,  if  determined  without  regard  to the  Policy  or (B) the  consent  of
Certificateholders evidencing a majority of the aggregate Certificate Percentage
Interest and the Indenture Trustee;  provided,  however,  that no such amendment
shall  reduce in any manner  the  amount  of, or delay the  timing of,  payments
received  that are required to be  distributed  on any  Certificate  without the
consent of each  Certificateholder  affected thereby and the Enhancer, or reduce
the aforesaid  percentage of Certificates  the  Certificateholders  of which are
required  to

                                       32

<PAGE>

consent to any such amendment,  without the consent of the Certificateholders of
all such Certificates then outstanding;  provided,  further, that no Certificate
registered  in the name of the Seller or an  Affiliate  of the  Seller  shall be
considered a Certificate for purposes of such consent.

     (e) No amendment of this Trust Agreement may provide for the holding of any
of the Certificates in book-entry form.

     (f) If the purpose of any such  amendment is to provide for the issuance of
additional  Certificates  representing an interest in the Trust, it shall not be
necessary to obtain the consent of any Certificateholder,  but the Owner Trustee
shall be furnished with (i) an Opinion of Counsel to the effect that such action
will  not  adversely  affect  in  any  material  respect  the  interests  of any
Certificateholders  and (B) a letter from each Rating  Agency to the effect that
such  amendment will not cause a Rating Event,  if determined  without regard to
the Policy, and the consent of the Enhancer shall be obtained.

     (g)  Promptly  after the  execution of any such  amendment or consent,  the
Owner  Trustee  shall  furnish  written  notification  of the  substance of such
amendment  or consent to each  Certificateholder,  the  Indenture  Trustee,  the
Paying  Agent,  the  Enhancer and each of the Rating  Agencies.  It shall not be
necessary  for  the  consent  of  Certificateholders  or the  Indenture  Trustee
pursuant to this Section  10.01 to approve the  particular  form of any proposed
amendment or consent,  but it shall be  sufficient if such consent shall approve
the  substance  thereof.  The manner of obtaining  such  consents (and any other
consents of  Certificateholders  provided for in this Trust  Agreement or in any
other Basic  Document)  and of  evidencing  the  authorization  of the execution
thereof by Certificateholders  shall be subject to such reasonable  requirements
as the Owner Trustee may prescribe.

     (h) In  connection  with the execution of any amendment to any agreement to
which the Trust is a party,  other than this Trust Agreement,  the Owner Trustee
shall be entitled to receive and conclusively rely upon an Opinion of Counsel to
the effect that such  amendment is  authorized  or  permitted  by the  documents
subject  to such  amendment  and  that all  conditions  precedent  in the  Basic
Documents  for the  execution  and  delivery  thereof  by the Trust or the Owner
Trustee, as the case may be, have been satisfied.

     (i) The Owner  Trustee  may,  but shall not be  obligated  to,  execute any
amendment which adversely affects its rights, duties or immunities hereunder.

     Promptly after the execution of any amendment to the  Certificate of Trust,
the Owner Trustee shall cause the filing of such amendment with the Secretary of
State.

     Section 10.02. No Legal Title to Trust Estate. The Certificateholders shall
not have legal  title to any part of the Trust  Estate.  The  Certificateholders
shall be  entitled  to receive  distributions  with  respect to their  undivided
beneficial  interest  therein only in  accordance  with  Articles V and VIII. No
transfer,  by operation of law or otherwise,  of any right, title or interest of
the  Certificateholders  to and in their ownership  interest in the Trust Estate
shall  operate to  terminate  this Trust  Agreement  or the trusts  hereunder or
entitle any  transferee to an accounting or to the transfer to it of legal title
to any part of the Trust Estate.

                                       33

<PAGE>

     Section 10.03.  Limitations  on Rights of Others.  Except for Section 2.07,
the  provisions of this Trust  Agreement are solely for the benefit of the Owner
Trustee, the Depositor, the Certificateholders,  the Enhancer and, to the extent
expressly  provided  herein,  the Paying Agent,  the  Indenture  Trustee and the
Noteholders,  and nothing in this Trust  Agreement  (other than  Section  2.07),
whether  express or implied,  shall be construed to give to any other Person any
legal or  equitable  right,  remedy or claim in the Trust  Estate or under or in
respect of this Trust  Agreement  or any  covenants,  conditions  or  provisions
contained herein.

     Section 10.04. Notices.

     (a) Unless otherwise  expressly specified or permitted by the terms hereof,
all notices  shall be in writing and shall be deemed given upon  receipt:  if to
the Owner  Trustee,  addressed to its Corporate  Trust Office;  if to the Paying
Agent,  addressed to its Corporate Trust Office,  if to the  Certificate  Paying
Agent,  addressed to U.S. Bank National Association,  180 East Fifth Street, St.
Paul,  Minnesota 55101  Attention:  Corporate Trust Services - WASI -- 2003-HE2,
with a copy to the Corporate  Trust Office of the Indenture  Trustee,  if to the
Depositor,  addressed to Wachovia  Asset  Securitization,  Inc.,  8739  Research
Drive, NC0121-Suite D, Charlotte, North Carolina 28288-0121,  Attention:  Robert
J.  Perret,  Telecopier:  (704)  383-8121;  if to  the  Enhancer,  addressed  to
Financial Guaranty Insurance Company, 125 Park Avenue, New York, New York 10017,
Attention:  Research and Risk  Management,  Telecopier:  212-312-3215  (Wachovia
Asset Securitization, Inc. 2003-HE2 Trust); if to the Rating Agencies, addressed
to Moody's Investors  Service,  Inc., 99 Church Street, 4th Floor, New York, New
York 10001 and Standard & Poor's, a division of The McGraw-Hill Companies, Inc.,
55 Water  Street,  New  York,  New York  10004,  Attention:  Structured  Finance
Department - MBS; or, as to each of the foregoing Persons, at such other address
as shall be designated  by such Person in a written  notice to each of the other
foregoing Persons.

     (b) Any notice  required or  permitted  to be given to a  Certificateholder
shall be given by  first-class  mail,  postage  prepaid,  at the address of such
Certificateholder  as shown in the  Certificate  Register.  Any notice so mailed
within the time prescribed in this Trust Agreement to a Certificateholder  shall
be  conclusively  presumed  to  have  been  duly  given,  whether  or  not  such
Certificateholder receives such notice.

     (c) A copy of any notice  delivered to the Owner Trustee or the Trust shall
also be delivered to the Depositor.

     Section 10.05. Severability.  Any provision of this Trust Agreement that is
prohibited or unenforceable in any jurisdiction  shall, as to such jurisdiction,
be ineffective to the extent of such  prohibition  or  unenforceability  without
invalidating  the  remaining  provisions  hereof,  and any such  prohibition  or
unenforceability   in  any   jurisdiction   shall  not   invalidate   or  render
unenforceable such provision in any other jurisdiction.

     Section 10.06. Separate Counterparts.  This Trust Agreement may be executed
by the  parties  hereto in any  number of  counterparts,  each of which  when so
executed and delivered  shall be an original,  but all such  counterparts  shall
together constitute but one and the same instrument.

                                       34

<PAGE>

     Section 10.07.  Successors and Assigns.  All  representations,  warranties,
covenants and  agreements  contained  herein shall be binding upon, and inure to
the benefit of, each of the Enhancer,  the Depositor,  the Owner Trustee and its
successors and each  Certificateholder and its successors and permitted assigns,
all as herein provided. Any request, notice, direction, consent, waiver or other
instrument  or action  by a  Certificateholder  shall  bind the  successors  and
assigns of such Certificateholder.

     Section 10.08. No Petition.  The Owner Trustee, by entering into this Trust
Agreement,  and each  Certificateholder,  by  accepting  a  Certificate,  hereby
covenants  and  agrees  that it  will  not at any  time  institute  against  the
Depositor or the Trust, or join in any institution  against the Depositor or the
Trust of, any  bankruptcy  Proceedings  under any United States federal or state
bankruptcy  or  similar  law  in  connection   with  any   obligations   to  the
Certificates,  the  Notes,  this  Trust  Agreement  or any of  the  other  Basic
Documents.

     Section  10.09.  No  Recourse.  Each  Certificateholder,   by  accepting  a
Certificate, acknowledges that such Certificateholder's Certificate represents a
beneficial  interest in the Trust only and does not  represent an interest in or
obligation  of the  Depositor,  the Seller,  the Owner  Trustee,  the  Indenture
Trustee,  the Paying Agent or any Affiliate thereof, and that no recourse may be
had against such Persons or their  assets,  except as may be expressly set forth
or  contemplated  in the  Certificates,  this Trust Agreement or the other Basic
Documents.

     Section 10.10.  Headings. The headings of the various Articles and Sections
herein are for  convenience  of reference only and shall not define or limit any
of the terms or provisions hereof.

     Section 10.11.  GOVERNING LAW. THIS TRUST  AGREEMENT  SHALL BE CONSTRUED IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF  DELAWARE,  WITHOUT  REFERENCE  TO ITS
CONFLICT OF LAW  PROVISIONS,  AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

Section 10.12. Integration. This Trust Agreement constitutes the entire
agreement among the parties hereto pertaining to the subject matter hereof and
supersedes all prior agreements and understanding pertaining thereto.

     Section 10.13. Rights of Enhancer to Exercise Rights of Certificateholders.
By  accepting  its  Certificate,  each  Certificateholder  agrees  that unless a
Enhancer  Default  exists,  the  Enhancer  shall have the right to exercise  all
rights of the Certificateholders  under this Trust Agreement without any further
consent of the Certificateholders. Nothing in this Section, however, shall alter
or modify in any way,  the  fiduciary  obligations  of the Owner  Trustee to the
Certificateholders  pursuant to this Trust  Agreement,  or create any  fiduciary
obligation  of the Owner  Trustee  to the  Enhancer.  The  Enhancer  shall be an
express third party beneficiary of this Trust Agreement.

                                       35

<PAGE>

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

                                         WACHOVIA ASSET SECURITIZATION, INC.,
                                          as Depositor

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

                                         WILMINGTON TRUST COMPANY,
                                          not in its individual capacity but
                                          solely as Owner Trustee, except with
                                          respect to the representations and
                                          warranties contained in Section 6.03
                                          hereof

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

Acknowledged and Agreed:

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

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

WACHOVIA BANK, NATIONAL ASSOCIATION,
not in its individual capacity but solely
as Certificate Registrar and Certificate
Paying Agent

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

                                       36

<PAGE>

WACHOVIA ASSET SECURITIZATION, INC.
2003-HE2 TRUST,

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

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

                                       37
<PAGE>

                                   EXHIBIT A

                              FORM OF CERTIFICATE

     THIS  CERTIFICATE  IS  SUBORDINATED  IN RIGHT OF  PAYMENT  TO THE  NOTES AS
DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

     THIS  CERTIFICATE  HAS NOT  BEEN  AND  WILL  NOT BE  REGISTERED  UNDER  THE
SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR  TRANSFERRED  UNLESS IT IS REGISTERED  PURSUANT TO SUCH ACT AND
STATE LAWS OR IS SOLD OR  TRANSFERRED  IN  TRANSACTIONS  WHICH ARE  EXEMPT  FROM
REGISTRATION UNDER SUCH ACT AND SUCH STATE LAWS AND IS TRANSFERRED IN ACCORDANCE
WITH THE PROVISIONS OF SECTION 3.05 OF THE AGREEMENT.

     NO  TRANSFER  OF THIS  CERTIFICATE  SHALL BE MADE  UNLESS  THE  CERTIFICATE
REGISTRAR  SHALL HAVE  RECEIVED  EITHER  (i) A  REPRESENTATION  LETTER  FROM THE
TRANSFEREE  OF THIS  CERTIFICATE  TO THE EFFECT THAT SUCH  TRANSFEREE  IS NOT AN
EMPLOYEE   BENEFIT  OR  OTHER  PLAN  SUBJECT  TO  THE   PROHIBITED   TRANSACTION
RESTRICTIONS  AND THE  FIDUCIARY  RESPONSIBILITY  REQUIREMENTS  OF THE  EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF
THE INTERNAL  REVENUE CODE OF 1986, AS AMENDED (THE "CODE"),  ANY PERSON ACTING,
DIRECTLY  OR  INDIRECTLY,  ON BEHALF OF ANY SUCH PLAN OR ANY PERSON  USING "PLAN
ASSETS,"  WITHIN THE  MEANING OF THE  DEPARTMENT  OF LABOR  REGULATIONS  SECTION
2510.3-101,  TO ACQUIRE THIS CERTIFICATE  (EACH, A "PLAN INVESTOR"),  OR (ii) IF
THIS  CERTIFICATE IS PRESENTED FOR  REGISTRATION IN THE NAME OF A PLAN INVESTOR,
AN OPINION OF COUNSEL  ACCEPTABLE TO AND IN FORM AND SUBSTANCE  SATISFACTORY  TO
THE DEPOSITOR, THE OWNER TRUSTEE, THE SERVICER AND THE CERTIFICATE REGISTRAR, OR
A  CERTIFICATION  IN THE FORM OF EXHIBIT G TO THE AGREEMENT,  TO THE EFFECT THAT
THE PURCHASE OR HOLDING OF THIS CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW,
WILL NOT CONSTITUTE OR RESULT IN A PROHIBITED  TRANSACTION  UNDER SECTION 406 OF
ERISA OR SECTION 4975 OF THE CODE (OR  COMPARABLE  PROVISIONS OF ANY  SUBSEQUENT
ENACTMENTS) AND WILL NOT SUBJECT THE DEPOSITOR, THE OWNER TRUSTEE, THE SERVICER,
THE CERTIFICATE REGISTRAR,  OR THE CERTIFICATE PAYING AGENT 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 AGREEMENT.

     THE  TRANSFEREE  OF THIS  CERTIFICATE  SHALL BE  SUBJECT  TO UNITED  STATES
FEDERAL  WITHHOLDING TAX UNLESS THE CERTIFICATE  REGISTRAR SHALL HAVE RECEIVED A
CERTIFICATE OF NON-FOREIGN STATUS CERTIFYING AS TO THE TRANSFEREE'S  STATUS AS A
U.S. PERSON OR CORPORATION OR PARTNERSHIP UNDER U.S. LAW.

                                      A-1

<PAGE>

     THIS  CERTIFICATE  DOES NOT  REPRESENT AN INTEREST IN OR  OBLIGATION OF THE
SELLER, THE DEPOSITOR,  THE SERVICER,  THE INDENTURE TRUSTEE, THE OWNER TRUSTEE,
the Paying  Agent OR ANY OF THEIR  RESPECTIVE  AFFILIATES,  EXCEPT AS  EXPRESSLY
PROVIDED IN THE AGREEMENT OR THE OTHER BASIC DOCUMENTS.

                                      A-2

<PAGE>

Certificate No. 1

Cut-Off Date:
June 1, 2003

Date of Trust Agreement:
July 2, 2003

First Payment Date:                                    Percentage Interest: 100%
July 25, 2003

Final Payment Date:
June 25, 2033

                      WACHOVIA ASSET SECURITIZATION, INC.
                   ASSET-BACKED CERTIFICATES, SERIES 2003-HE2

     evidencing   a   fractional    undivided   interest   in   Wachovia   Asset
Securitization,  Inc.  2003-HE2  Trust (the  "Issuer"),  the  property  of which
consists primarily of the Mortgage Loans.

     This Certificate is payable solely from the assets of the Trust Estate, and
does not represent an obligation  of or interest in the  Depositor,  the Seller,
the Servicer,  the Indenture  Trustee,  the Paying Agent or the Owner Trustee or
any of their  Affiliates.  This  Certificate is not guaranteed or insured by any
governmental  agency or  instrumentality  or by the Depositor,  the Seller,  the
Servicer, the Indenture Trustee, the Paying Agent or the Owner Trustee or any of
their affiliates. None of the Depositor, the Seller, the Servicer, the Indenture
Trustee,  the Paying Agent or the Owner Trustee or any of their  Affiliates will
have any obligation with respect to any certificate or other obligation  secured
by or payable from payments on the Certificates.

     This certifies that Wachovia Asset  Securitization,  Inc. is the registered
owner of the Certificate  Percentage  Interest evidenced by this Certificate (as
set forth on the face hereof) in certain distributions with respect to the Trust
Estate,  consisting  primarily of the Mortgage Loans,  created by Wachovia Asset
Securitization,  Inc.  (the  "Depositor").  The Trust (as  defined  herein)  was
created  pursuant to a trust  agreement dated as of July 2, 2003 (as amended and
supplemented  from  time to time,  the  "Agreement"),  among the  Depositor  and
Wilmington  Trust  Company,  as owner trustee (the "Owner  Trustee,"  which term
includes any successor entity under the Agreement),  a summary of certain of the
pertinent  provisions of which is set forth  hereafter.  Capitalized  terms used
herein that are not otherwise  defined shall have the meanings  ascribed thereto
in Appendix A to the indenture  dated as of July 2, 2003,  among the Trust,  the
Paying Agent and the Indenture Trustee.  This Certificate is issued under and is
subject to the terms,  provisions  and  conditions  of the  Agreement,  to which
Agreement the  Certificateholder of this Certificate by virtue of the acceptance
hereof assents and by which such Certificateholder is bound.

     Pursuant to the terms of the Agreement,  a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Payment Date"),  commencing on the first Payment
Date specified above, to the Person in whose name this Certificate is registered
at the close of  business on the last day (or if such last

                                      A-3

<PAGE>

day is not a Business Day, the Business Day immediately preceding such last day)
of the month  immediately  preceding the month of such distribution (the "Record
Date"), in an amount equal to the pro rata portion evidenced by this Certificate
(based on the Percentage  Interest stated on the face hereon) of the amount,  if
any,  required to be distributed to  Certificateholders  of Certificates on such
Payment Date.  Distributions on this Certificate will be made as provided in the
Agreement   by  the   Certificate   Paying   Agent  by  wire   transfer  to  the
Certificateholder of record in the Certificate Register without the presentation
or surrender of this Certificate or the making of any notation hereon.  Pursuant
to the Agreement, the Trust has issued the Certificates.

     Except as  otherwise  provided in the  Agreement  and  notwithstanding  the
above, the final  distribution on this Certificate will be made after due notice
by the Certificate  Paying Agent of the pendency of such  distribution  and only
upon  presentation  and  surrender of this  Certificate  at the office or agency
designated by the Certificate Registrar for that purpose.

     No transfer of this Certificate will be made unless such transfer is exempt
from the  registration  requirements  of the  Securities Act of 1933, as amended
(the  "Securities  Act"), and any applicable state securities laws or is made in
accordance  the  Securities  Act and such state  laws.  In the event that such a
transfer is to be made,  (i) the  Certificate  Registrar  or the  Depositor  may
require  an  opinion  of  counsel  acceptable  to  and  in  form  and  substance
satisfactory to the  Certificate  Registrar and the Depositor that such transfer
is exempt  (describing the applicable  exemption and the basis therefor) from or
is being made pursuant to the  registration  requirements of the Securities Act,
and of any applicable statute of any state and (ii) the transferee shall execute
an  investment  letter  in the form  described  in the  Agreement  and (iii) the
Certificate  Registrar  shall  require the  transferee  to execute an investment
letter and a  Certificate  of  Non-Foreign  Status in the form  described by the
Agreement (or if a Certificate of Non-Foreign Status is not provided, an Opinion
of  Counsel  as  described  in  the  Agreement),  which  investment  letter  and
certificate or Opinion of Counsel shall not be at the expense of the Trust,  the
Owner Trustee, the Certificate Registrar or the Depositor. The Certificateholder
hereof  desiring  to effect  such  transfer  shall,  and does  hereby  agree to,
indemnify  the Trust,  the Owner  Trustee,  the  Depositor,  the  Servicer,  the
Certificate  Registrar  and the  Certificate  Paying Agent 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.  In  connection  with any such  transfer,  the
Certificate  Registrar  (unless  otherwise  directed by the Depositor) will also
require  either (i) a  representation  letter,  in the form as  described by the
Agreement,  stating that the transferee is not an employee benefit or other plan
subject  to  the   prohibited   transaction   restrictions   or  the   fiduciary
responsibility requirements of ERISA or Section 4975 of the Code (a "Plan"), any
person acting, directly or indirectly,  on behalf of any such Plan or any Person
using  the  "plan  assets,"  within  the  meaning  of the  Department  of  Labor
Regulations  Section  2510.3-101,  to effect such acquisition  (collectively,  a
"Plan  Investor") or (ii) if such  transferee is a Plan Investor,  an opinion of
counsel  acceptable to and in form and substance  satisfactory to the Depositor,
the  Owner  Trustee,   the  Servicer  and  the  Certificate   Registrar,   or  a
certification in the form of Exhibit G to the Agreement,  to the effect that the
purchase or holding of such  Certificate is permissible  under  applicable  law,
will not constitute or result in a prohibited  transaction  under Section 406 of
ERISA or Section 4975 of the Code (or  comparable  provisions of any  subsequent
enactments) and will not subject the Depositor, the Owner Trustee, the Servicer,
the  Enhancer  or the  Certificate  Registrar  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 Agreement.

                                      A-4

<PAGE>

     This  Certificate  is  one  of a  duly  authorized  issue  of  Certificates
designated as Wachovia Asset Securitization,  Inc. Asset-Backed  Certificates of
the Series specified hereon (the "Certificates").

     The Certificateholder of this Certificate, by its acceptance hereof, agrees
that it will look  solely to the funds on  deposit in the  Distribution  Account
that have been released from the Lien of the Indenture for payment hereunder and
that neither the Owner Trustee in its  individual  capacity nor the Depositor is
personally  liable to the  Certificateholders  for any amount payable under this
Certificate or the Agreement or, except as expressly  provided in the Agreement,
subject to any liability under the Agreement.

     The Certificateholder of this Certificate  acknowledges and agrees that its
rights to receive  distributions in respect of this Certificate are subordinated
to the rights of the Noteholders as described in the Indenture.

     Each Certificateholder,  by its acceptance of a Certificate,  covenants and
agrees that such  Certificateholder  will not at any time institute  against the
Depositor or the Trust, or join in any institution  against the Depositor or the
Trust of, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings,  or other  proceedings  under any  United  States  federal or state
bankruptcy or similar law in  connection  with any  obligations  relating to the
Certificates, the Notes, the Agreement or any of the other Basic Documents.

     The Agreement  permits the amendment  thereof as specified below,  provided
that any amendment be  accompanied by the consent of the Enhancer and an Opinion
of Counsel to the Owner Trustee to the effect that such amendment  complies with
the provisions of the Agreement and will not cause the Trust to be subject to an
entity  level tax.  If the  purpose  of any such  amendment  is to  correct  any
mistake, eliminate any inconsistency, cure any ambiguity or deal with any matter
not  covered,   it  shall  not  be  necessary  to  obtain  the  consent  of  any
Certificateholder,  but the Owner Trustee shall be furnished  with a letter from
each  Rating  Agency to the effect that such  amendment  will not cause a Rating
Event,  determined without regard to the Policy, and the consent of the Enhancer
shall be  obtained.  If the  purpose of any such  amendment  is to  prevent  the
imposition  of any  federal  or state  taxes at any time  that any  Security  is
Outstanding,  it  shall  not be  necessary  to  obtain  the  consent  of the any
Certificateholder,  but the Owner Trustee shall be furnished  with an Opinion of
Counsel that such amendment is necessary or helpful to prevent the imposition of
such  taxes  and is not  materially  adverse  to any  Certificateholder  and the
consent of the Enhancer shall be obtained. If the purpose of the amendment is to
add or  eliminate  or change  any  provision  of the  Agreement,  other  than as
specified in the preceding two sentences, the amendment shall require either (a)
a letter from each  Rating  Agency to the effect  that such  amendment  will not
cause a Rating Event, determined without regard to the Policy or (b) the consent
of  Certificateholders  of  a  majority  of  the  Percentage  Interests  of  the
Certificates  and  the  Indenture  Trustee;  provided,  however,  that  no  such
amendment  shall (i)  reduce in any  manner the amount of, or delay the time of,
payments received that are required to be distributed on any Certificate without
the consent of all Certificateholders affected thereby and the Enhancer, or (ii)
reduce the aforesaid percentage of Certificates the  Certificateholders of which
are  required  to  consent  to any such  amendment  without  the  consent of the
Certificateholders of all such Certificates then outstanding.

                                      A-5

<PAGE>

     As provided in the Agreement and subject to certain limitations therein set
forth,  the transfer of this  Certificate  is  registerable  in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
Corporate  Trust Office of the Certificate  Registrar,  accompanied by a written
instrument of transfer in form  satisfactory to the  Certificate  Registrar duly
executed by the Certificateholder  hereof or such  Certificateholder's  attorney
duly  authorized  in writing,  and  thereupon  one or more new  Certificates  of
authorized  denominations evidencing the same aggregate Percentage Interest will
be  issued to the  designated  transferee.  The  initial  Certificate  Registrar
appointed under the Agreement is the Paying Agent.

     Except as provided in the Agreement,  the Certificates are issuable only in
minimum  denominations  of  a  10.0000%  Percentage  Interest  and  in  integral
multiples of a 0.0001% Percentage Interest in excess thereof. As provided in the
Agreement and subject to certain limitations therein set forth, the Certificates
are exchangeable for new Certificates of authorized denominations,  as requested
by the  Certificateholder  surrendering  the same. This Certificate is issued in
the Percentage Interest above.

     No service  charge  will be made for any such  registration  of transfer or
exchange, but the Owner Trustee or the Certificate Registrar may require payment
of a sum  sufficient  to  cover  any  tax  or  governmental  charge  payable  in
connection therewith.

     The Owner Trustee, the Certificate Paying Agent, the Certificate  Registrar
and any  agent of the  Owner  Trustee,  the  Certificate  Paying  Agent,  or the
Certificate  Registrar  may treat the Person in whose name this  Certificate  is
registered as the owner hereof for all purposes,  and none of the Owner Trustee,
the Certificate Paying Agent, the Certificate  Registrar or any such agent shall
be affected by any notice to the contrary.

     This Certificate  shall be governed by and construed in accordance with the
laws of the State of Delaware.

     The obligations created by the Agreement in respect of this Certificate and
the Trust created  thereby shall  terminate upon the final  distribution  of all
moneys or other property or proceeds of the Trust Estate in accordance  with the
terms of the Indenture and the Agreement.

     It is the intent of the  Depositor,  the  Issuer and the  Certificateholder
that for federal,  state and local  income,  single  business and  franchise tax
purposes,  (a) the Trust  will not be  treated as an  association  (or  publicly
traded partnership)  taxable as a corporation or a taxable mortgage pool and (b)
the Trust will not fail to be treated as a disregarded entity.

     Unless the certificate of authentication hereon shall have been executed by
an  authorized  officer  of the  Owner  Trustee  or the  Indenture  Trustee,  as
authenticating agent by manual signature, this Certificate shall not be entitled
to any benefit under the Agreement or be valid for any purpose.

                                      A-6

<PAGE>

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

                                         WACHOVIA ASSET SECURITIZATION, INC.
                                          2003-HE2 TRUST

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

Dated: July 2, 2003                      By:
                                            ------------------------------------
                                                     Authorized Signatory

                         CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred to in the within mentioned Agreement.

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

By:
   --------------------------------------
            Authorized Signatory

or                                       ,
  ---------------------------------------
as Authenticating Agent of the Owner Trustee

By:
   --------------------------------------
            Authorized Signatory

                                      A-7
<PAGE>

                                   ASSIGNMENT

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

                        PLEASE INSERT SOCIAL SECURITY OR
                      OTHER IDENTIFYING NUMBER OF ASSIGNEE

--------------------------------------------------------------------------------
(Please print or type name and address, including postal zip code, of assignee)

--------------------------------------------------------------------------------
the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing

--------------------------------------------------------------------------------
to transfer said Certificate on the books of the Certificate Registrar, with
full power of substitution in the premises.

Dated:

                                                                              */
                                         -------------------------------------
                                                  Signature Guaranteed:

                                                                              */
                                            ---------------------------------

*/ NOTICE:  The signature to this assignment must correspond with the name as it
appears upon the face of the within  Certificate  in every  particular,  without
alteration,   enlargement  or  any  change  whatever.  Such  signature  must  be
guaranteed by a member firm of the New York Stock Exchange or a commercial  bank
or trust company.

                                      A-8

<PAGE>

                           DISTRIBUTION INSTRUCTIONS

     The  assignee  should  include the  following  for the  information  of the
Certificate Paying Agent:

     Distribution shall be made by wire transfer in immediately  available funds
to
   -----------------------------------------------

   -----------------------------------------------
for the account of                                                         ,
                   -------------------------------------------------------
account number                                                            , or,
               ----------------------------------------------------------
if mailed by check, to                             .
                       ----------------------------

      Applicable statements should be mailed to                                .
                                                ------------------------------

                                            ------------------------------------
                                            Signature of assignee or agent
                                            (for authorization of wire
                                            transfer only)

                                      A-9
<PAGE>

                                   EXHIBIT B

                              CERTIFICATE OF TRUST

                                       OF

               WACHOVIA ASSET SECURITIZATION, INC. 2003-HE2 TRUST

     THE  UNDERSIGNED,   Wilmington   Trust  Company,   as  owner  trustee  (the
"Trustee"),  for the purpose of forming a statutory trust does hereby certify as
follows:

     1. The name of the statutory trust is:

        WACHOVIA ASSET SECURITIZATION, INC. 2003-HE2 TRUST

     2. The name and business  address of the Trustee of the statutory  trust in
the State Delaware is Wilmington Trust Company,  Rodney Square North, 1100 North
Market Street, Wilmington, Delaware 19890.

     3. The  statutory  trust  reserves the right to amend,  alter,  change,  or
repeal any provision contained in this Certificate of Trust in the manner now or
hereafter prescribed by law.

     4. This Certificate of Trust shall be effective upon filing.

     THE UNDERSIGNED,  being the Trustee  hereinbefore named, for the purpose of
forming a statutory  trust pursuant to the provisions of the Delaware  Statutory
Trust Act, does make this  certificate  of trust,  hereby  declaring and further
certifying  that  this  is  its  act  and  deed  and  that  to the  best  of the
undersigned's knowledge and belief the facts herein stated are true.

                                            Wilmington Trust Company,
                                             not in its individual capacity but
                                             solely as owner trustee under the
                                             trust agreement to be dated as of
                                             July 2, 2003

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

Dated:  July 2, 2003

                                      B-1

<PAGE>

                                   EXHIBIT C

                 [FORM OF RULE 144A INVESTMENT REPRESENTATION]

            Description of Rule 144A Securities, including numbers:

            -------------------------------------------------------

            -------------------------------------------------------

            -------------------------------------------------------

            -------------------------------------------------------

     The undersigned  seller,  as registered  holder (the "Seller"),  intends to
transfer the Rule 144A Securities  described above to the undersigned buyer (the
"Buyer").

     1. In connection  with such transfer and in accordance  with the agreements
pursuant  to which the Rule 144A  Securities  were  issued,  the  Seller  hereby
certifies  the  following  facts:  Neither  the Seller nor anyone  acting on its
behalf has offered, transferred, pledged, sold or otherwise disposed of the Rule
144A  Securities,  any interest in the Rule 144A Securities or any other similar
security to, or solicited any offer to buy or accept a transfer, pledge or other
disposition  of  the  Rule  144A  Securities,  any  interest  in the  Rule  144A
Securities  or any other  similar  security  from,  or otherwise  approached  or
negotiated  with respect to the Rule 144A  Securities,  any interest in the Rule
144A Securities 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
Rule 144A  Securities  under the  Securities  Act of 1933, as amended (the "1933
Act"),  or that  would  render the  disposition  of the Rule 144A  Securities  a
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than the Buyer or  another  "qualified  institutional  buyer" as defined in Rule
144A under the 1933 Act.

     2. The Buyer  warrants and  represents  to, and covenants  with,  the Owner
Trustee and the Depositor, pursuant to Section 3.09 of the trust agreement dated
as of July 2, 2003 (the "Agreement"), among Wachovia Asset Securitization, Inc.,
as depositor (the "Depositor"),  and Wilmington Trust Company,  as owner trustee
(the "Owner Trustee"), as follows:

          a. The Buyer  understands  that the Rule 144A Securities have not been
registered under the 1933 Act or the securities laws of any state.

          b.  The   Buyer   considers   itself  a   substantial,   sophisticated
institutional  investor  having such  knowledge and  experience in financial and
business  matters  that it is  capable  of  evaluating  the  merits and risks of
investment in the Rule 144A Securities.

          c. The Buyer has been  furnished  with all  information  regarding the
Rule 144A  Securities  that it has  requested  from the  Seller,  the  Indenture
Trustee, the Owner Trustee or the Servicer.

          d.  Neither  the Buyer nor anyone  acting on its  behalf has  offered,
transferred,  pledged,  sold or otherwise  disposed of the Rule 144A Securities,
any interest in the Rule 144A  Securities or any other  similar  security to, or
solicited any offer to buy or accept a

                                      C-1

<PAGE>

transfer, pledge or other disposition of the Rule 144A Securities,  any interest
in the Rule 144A  Securities  or any other similar  security  from, or otherwise
approached or negotiated with respect to the Rule 144A Securities,  any interest
in the Rule 144A  Securities 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 Rule 144A Securities under the 1933 Act or that would render
the disposition of the Rule 144A Securities a violation of Section 5 of the 1933
Act or  require  registration  pursuant  thereto,  nor  will it act,  nor has it
authorized  or will it authorize  any person to act, in such manner with respect
to the Rule 144A Securities.

     e. The Buyer is a "qualified  institutional  buyer" as that term is defined
in Rule  144A  under  the  1933 Act and has  completed  either  of the  forms of
certification to that effect attached hereto as Annex 1 or Annex 2. The Buyer is
aware that the sale to it is being made in reliance  on Rule 144A.  The Buyer is
acquiring the Rule 144A  Securities for its own account or the accounts of other
qualified  institutional buyers,  understands that such Rule 144A Securities 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 1933 Act.

3. The Buyer represents that:

     (i) either (a) or (b) is satisfied, as marked below:

          a. The Buyer is not any employee  benefit plan subject to the Employee
     ----
Retirement  Income Security Act of 1974, as amended  ("ERISA"),  or the Internal
Revenue Code of 1986,  as amended (the  "Code"),  a 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
Regulations Section 2510.3-101; or

          b. The Buyer  will  provide  the  Depositor,  the Owner  Trustee,  the
     ----
Certificate Registrar, the Enhancer and the Servicer with either: (x) an opinion
of counsel,  satisfactory to the Depositor,  the Owner Trustee,  the Certificate
Registrar,  the Enhancer and the  Servicer,  to the effect that the purchase and
holding  of a  Certificate  by or on behalf of the  Buyer is  permissible  under
applicable law, will not constitute or result in a prohibited  transaction under
Section 406 of ERISA or Section 4975 of the Code (or  comparable  provisions  of
any  subsequent  enactments)  and will not  subject  the  Depositor,  the  Owner
Trustee, the Certificate  Registrar,  the Certificate Paying Agent, the Enhancer
or the Servicer to any  obligation  or liability  (including  liabilities  under
ERISA or Section 4975 of the Code) in addition to those  undertaken in the Trust
Agreement,  which opinion of counsel  shall not be an expense of the  Depositor,
the Owner Trustee, the Certificate  Registrar,  the Enhancer or the Servicer; or
(y) in lieu of

                                      C-2

<PAGE>

          such opinion of counsel,  a certification  in the form of Exhibit G to
          the Trust Agreement; and

          (ii)  the  Buyer  is   familiar   with  the   prohibited   transaction
restrictions and fiduciary  responsibility  requirements of Sections 406 and 407
of ERISA and Section 4975 of the Code and  understands  that each of the parties
to which this  certification is made is relying and will continue to rely on the
statements made in this paragraph 3.

     This  document  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 document.

     Capitalized terms used herein that are not otherwise defined shall have the
meanings  ascribed  thereto in Appendix A to the  indenture  dated as of July 2,
2003, among the Trust, the Paying Agent and the Indenture Trustee.

                                      C-3
<PAGE>

     IN WITNESS  WHEREOF,  each of the parties has executed  this document as of
the date set forth below.

-----------------------------------      ---------------------------------------
Print Name of Seller                     Print Name of Buyer

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

Taxpayer Identification:                 Taxpayer Identification:

No.                                      No.
   --------------------------------         ------------------------------------

Date:                                    Date:
     ------------------------------           ----------------------------------

                                      C-4
<PAGE>

                                                            ANNEX 1 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

            [For Buyers Other Than Registered Investment Companies]

          The  undersigned  hereby  certifies as follows in connection  with the
Rule 144A Investment Representation to which this certification is attached:

          1.  As  indicated  below,  the  undersigned  is the  President,  Chief
Financial  Officer,  Senior Vice  President  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 ("Rule 144A") because (i) the Buyer owned and/or invested
on a discretionary  basis $                      1 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  charitable  organization
          described in Section 501(c)(3) of the Internal Revenue Code.

          Bank.  The  Buyer  (a)  is a  national  bank  or  banking  institution
 ------   organized  under the laws of any state,  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.

          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.

          Broker-Dealer. The Buyer is a dealer registered pursuant to Section 15
 ------   of the Securities Exchange Act of 1934, as amended.

----------------
1 Buyer must own and/or invest on a discretionary  basis at least  $1000,000,000
in securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
invest on a discretionary basis at least $10,000,000 in securities.

                                      C-5

<PAGE>

          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  or  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, as
          amended.

          Investment  Adviser.  The Buyer is an  investment  adviser  registered
 ------   under the Investment Advisers Act of 1940. as amended.

          SBIC. The Buyer is a Small Business Investment Company licensed by the
 ------   U.S. Small Business  Administration under Section 301(c) or (d) of the
          Small Business Investment Act of 1958, as amended.

          Business  Development  Company.  The Buyer is a  business  development
 ------   company as defined in Section  202(a)(22) of the  Investment  Advisers
          Act of 1940, as amended.

          Trust Fund. The Buyer is a trust fund whose trustee is a bank or trust
 ------   company and whose  participants are exclusively (a) plans  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,  or (b) employee  benefit  plans within the
          meaning of Title I of the Employee  Retirement  Income Security Act of
          1974,  as  amended,   but  is  not  a  trust  fund  that  includes  as
          participants individual retirement accounts or H.R. 10 plans.

          3.  The  term  "securities"  as  used  herein  does  not  include  (i)
securities of issuers that are affiliated  with the Buyer,  (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer,  (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.

          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 and did not include any of the  securities
referred to in the preceding  paragraph.  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.

                                      C-6

<PAGE>

          5. The  Buyer  acknowledges  that it is  familiar  with  Rule 144A and
understands  that the  seller to it and other  parties  related to the Rule 144A
Securities 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 Rule 144A
         ----------     ----------
            Yes             No      Securities only for the Buyer's own account?

          6. If the answer to the foregoing question is "no", the Buyer agrees
that, in connection with any purchase of securities sold to the Buyer for the
account of a third party (including any separate account) in reliance on Rule
144A, the Buyer will only purchase for the account of a third party that at the
time is a "qualified institutional buyer" within the meaning of Rule 144A. In
addition, the Buyer agrees that the Buyer will not purchase securities for a
third party unless the Buyer has obtained a current representation letter from
such third party or taken other appropriate steps contemplated by Rule 144A to
conclude that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

          7.  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 Rule 144A  Securities will
constitute  a  reaffirmation  of  this  certification  as of the  date  of  such
purchase.

                                         ---------------------------------------
                                         Print Name of Buyer

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

                                         Date:
                                            ------------------------------------

                                      C-7
<PAGE>

                                                            ANNEX 2 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers That Are Registered Investment Companies]

          The  undersigned  hereby  certifies as follows in connection  with the
Rule 144A Investment Representation to which this certification is attached:

          1.  As  indicated  below,  the  undersigned  is the  President,  Chief
Financial  Officer or Senior Vice  President  of the Buyer or, if the Buyer is a
"qualified  institutional  buyer" as that term is defined in Rule 144A under the
Securities  Act of 1933  ("Rule  144A")  because  Buyer is part of a  Family  of
Investment Companies (as defined below), is such an officer of the Adviser.

          2. In connection  with  purchases by Buyer,  the Buyer is a "qualified
institutional  buyer"  as  defined  in Rule  144A  because  (i) the  Buyer is an
investment company registered under the Investment Company Act of 1940, and (ii)
as marked below, the Buyer alone, 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.

          The Buyer owned $                      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.

          5. The Buyer is familiar with Rule 144A and  understands  that each of
the parties to which this certification is made are relying and will continue to
rely on the  statements  made

                                      C-8

<PAGE>

herein  because one or more sales to the Buyer will be in reliance on Rule 144A.
In addition, the Buyer will only purchase for the Buyer's own account.

          6. The  undersigned  will  notify  each of the  parties  to which this
certification is made of any changes in the information and conclusions  herein.
Until such notice,  the Buyer's purchase of Rule 144A Securities will constitute
a reaffirmation of this  certification by the undersigned as of the date of such
purchase.

                                         ---------------------------------------
                                         Print Name of Buyer

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

                                         IF AN ADVISER:

                                         ---------------------------------------
                                         Print Name of Buyer

                                         Date:
                                              ----------------------------------

                                      C-9
<PAGE>

                                   EXHIBIT D

                     FORM OF INVESTOR REPRESENTATION LETTER

              ,
-------------   -----

Wachovia Asset Securitization, Inc.
8739 Research Drive
NC0121 Suite D
Charlotte, North Carolina 28288-0121

U.S. Bank National Association
180 East Fifth Street
St. Paul, Minnesota 55101
Attention: Corporate Trust Services - WASI -- 2003-HE2

Wachovia Bank, National Association
401 South Tryon Street-NC 1179,
Charlotte, NC 28288,
Attn:  Structure Finance Trust Services

          Re:       Wachovia Asset Securitization, Inc.
                    Asset-Backed Certificates, Series 2003-HE2
                    ------------------------------------------

Ladies and Gentlemen:

                               (the   "Purchaser")   intends  to  purchase  from
      ------------------------
                (the   "Seller")         %
---------------                  --------
Certificate Percentage Interest of Series 2003-HE2 (the "Certificates"),  issued
pursuant  to  the  trust  agreement  dated  as  of  July  2,  2003  (the  "Trust
Agreement"),  among  Wachovia  Asset  Securitization,  Inc.,  as depositor  (the
"Depositor")  and  Wilmington  Trust  Company,  as  owner  trustee  (the  "Owner
Trustee").  Capitalized  terms used herein that are not otherwise  defined shall
have the meanings  ascribed  thereto in Appendix A to the indenture  dated as of
July 2, 2003, among the Trust, the Paying Agent and the Indenture  Trustee.  The
Purchaser hereby certifies,  represents and warrants to, and covenants with, the
Depositor and the Certificate Registrar that:

                    1. The Purchaser  understands that (a) the Certificates have
          not been and will not be registered or qualified  under the Securities
          Act of 1933, as amended (the "Act"),  or any state securities law, (b)
          the   Company  is  not   required   to  so  register  or  qualify  the
          Certificates,  (c) the  Certificates  may be resold only if registered
          and  qualified  pursuant  to the  provisions  of the Act or any  state
          securities  law,  or  if  an  exemption  from  such  registration  and
          qualification   is  available,   (d)  the  Trust  Agreement   contains
          restrictions  regarding the transfer of the  Certificates  and (e) the
          Certificates will bear a legend to the foregoing effect.

                                      D-1

<PAGE>

                    2. The Purchaser is acquiring the  Certificates  for its own
          account  for  investment  only  and not  with a view to or for sale in
          connection  with any  distribution  thereof in any  manner  that would
          violate the Act or any applicable state securities laws.

                    3.  The  Purchaser  is  (a)  a  substantial,   sophisticated
          institutional   investor  having  such  knowledge  and  experience  in
          financial and business  matters,  and, in particular,  in such matters
          related to  securities  similar to the  Certificates,  such that it is
          capable  of  evaluating  the  merits  and risks of  investment  in the
          Certificates,  (b)  able  to  bear  the  economic  risks  of  such  an
          investment and (c) an "accredited investor" within the meaning of Rule
          501(a) promulgated pursuant to the Act.

                    4. The Purchaser  has been  furnished  with,  and has had an
          opportunity  to review a copy of the Trust  Agreement  and such  other
          information  concerning the  Certificates,  the Mortgage Loans and the
          Depositor as has been requested by the Purchaser from the Depositor or
          the Seller and is relevant to the Purchaser's decision to purchase the
          Certificates.  The Purchaser  has had any questions  arising from such
          review answered by the Depositor or the Seller to the  satisfaction of
          the Purchaser.

                    5. The  Purchaser has not and will not nor has it authorized
          or will it authorize any person to (a) offer, pledge, sell, dispose of
          or otherwise transfer any Certificate, any interest in any Certificate
          or any other similar security to any person in any manner, (b) solicit
          any offer to buy or to accept a pledge,  disposition of other transfer
          of any  Certificate,  any  interest  in any  Certificate  or any other
          similar security from any person in any manner, (c) otherwise approach
          or  negotiate  with  respect to any  Certificate,  any interest in any
          Certificate  or any  other  similar  security  with any  person in any
          manner,  (d)  make  any  general  solicitation  by  means  of  general
          advertising or in any other manner or (e) take any other action,  that
          (as to any of (a) through (d) above) would  constitute a  distribution
          of any Certificate under the Act, that would render the disposition of
          any  Certificate  a  violation  of  Section  5 of the Act or any state
          securities law, or that would require  registration  or  qualification
          pursuant  thereto.  The Purchaser will not sell or otherwise  transfer
          any of the  Certificates,  except in compliance with the provisions of
          the Trust Agreement.

                    6. The Purchaser represents:

                       (i) that either (a) or (b) is satisfied, as marked below:

                              a. The Purchaser is not any employee  benefit plan
                       -----
                    subject to the Employee  Retirement  Income  Security Act of
                    1974, as amended ("ERISA"),  or the Internal Revenue Code of
                    1986, as amended (the "Code"), a 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  Regulations
                    Section 2510.3-101; or

                              b. The Purchaser will provide the  Depositor,  the
                       -----
                    Owner Trustee, the Certificate  Registrar,  the Enhancer and
                    the  Servicer  with  either:  (x)  an  opinion  of  counsel,
                    satisfactory  to  the  Depositor,  the  Owner  Trustee,  the

                                      D-2

<PAGE>

                    Certificate Registrar, the Enhancer and the Servicer, to the
                    effect that the purchase and holding of a Certificate  by or
                    on behalf of the Purchaser is permissible  under  applicable
                    law,   will  not   constitute  or  result  in  a  prohibited
                    transaction  under  Section 406 of ERISA or Section  4975 of
                    the  Code  (or  comparable   provisions  of  any  subsequent
                    enactments)  and will not subject the  Depositor,  the Owner
                    Trustee, the Certificate  Registrar,  the Certificate Paying
                    Agent,  the  Enhancer or the Servicer to any  obligation  or
                    liability (including liabilities under ERISA or Section 4975
                    of the Code) in  addition to those  undertaken  in the Trust
                    Agreement,  which opinion of counsel shall not be an expense
                    of  the  Depositor,   the  Owner  Trustee,  the  Certificate
                    Registrar,  the Enhancer or the Servicer;  or (y) in lieu of
                    such  opinion of  counsel,  a  certification  in the form of
                    Exhibit G to the Trust Agreement; and

                    (ii)  the   Purchaser  is  familiar   with  the   prohibited
          transaction restrictions and fiduciary responsibility  requirements of
          Sections  406 and 407 of  ERISA  and  Section  4975  of the  Code  and
          understands  that each of the parties to which this  certification  is
          made is relying and will  continue to rely on the  statements  made in
          this paragraph 6.

                    7. The Purchaser is not a non-United States person.

                                         Very truly yours,

                                         ---------------------------------------

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

                                      D-3

<PAGE>

                                   EXHIBIT E

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                ,
---------------  -------

Wachovia Asset Securitization, Inc.
8739 Research Drive
NC0121 Suite D
Charlotte, North Carolina 28288-0121

U.S. Bank National Association
180 East Fifth Street
St. Paul, Minnesota 55101
Attention: Corporate Trust Services - WASI -- 2003-HE2

Wachovia Bank, National Association
401 South Tryon Street-NC 1179,
Charlotte, NC 28288,
Attn:  Structure Finance Trust Services

          Re:       Wachovia Asset Securitization, Inc.
                    Asset-Backed Certificates, Series 2003-HE2
                    ------------------------------------------

Ladies and Gentlemen:

                    (the  "Purchaser")  intends to purchase from
      -------------                                              -------------
(the  "Seller")       %
               ------
a Percentage Interest of Certificates of Series  2003-HE2 (the  "Certificates"),
issued  pursuant  to the trust  agreement  dated as of July 2, 2003 (the  "Trust
Agreement"),  among  Wachovia  Asset  Securitization,  Inc.,  as depositor  (the
"Depositor"),  and  Wilmington  Trust  Company,  as owner  trustee  (the  "Owner
Trustee").  Capitalized  terms used herein that are not otherwise  defined shall
have the meanings  ascribed  thereto in Appendix A to the indenture  dated as of
July 2, 2003, among the Trust, the Paying Agent and the Indenture  Trustee.  The
Seller hereby  certifies,  represents  and warrants to, and covenants  with, the
Depositor and the Certificate Registrar that:

     Neither  the  Seller  nor  anyone  acting on its  behalf  has (a)  offered,
pledged,  sold,  disposed  of or  otherwise  transferred  any  Certificate,  any
interest in any  Certificate or any other similar  security to any person in any
manner, (b) has solicited any offer to buy or to accept a pledge, disposition or
other transfer of any Certificate,  any interest in any Certificate or any other
similar security from any person in any manner, (c) has otherwise  approached or
negotiated with respect to any  Certificate,  any interest in any Certificate or
any other  similar  security  with any  person in any  manner,  (d) has made any
general  solicitation by means of general advertising or in any other manner, or
(e) has taken any other action,  that (as to any of (a) through (e) above) would
constitute a distribution of the  Certificates  under the Securities Act of 1933
(the "Act"), that

                                      E-1

<PAGE>

would render the  disposition of any Certificate a violation of Section 5 of the
Act or  any  state  securities  law,  or  that  would  require  registration  or
qualification pursuant thereto.

The Seller will not act, in any manner set forth in the foregoing sentence with
respect to any Certificate. The Seller has not and will not sell or otherwise
transfer any of the Certificates, except in compliance with the provisions of
the Trust Agreement.

                                         Very truly yours,

                                         ---------------------------------------
                                         (Seller)

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

                                      E-2

<PAGE>

                                    EXHIBIT F

                   FORM OF CERTIFICATE OF NON-FOREIGN STATUS

     This  Certificate  of Non-Foreign  Status is delivered  pursuant to Section
3.09 of the trust  agreement  dated as of July 2, 2003 (the "Trust  Agreement"),
among Wachovia Asset Securitization,  Inc., as depositor (the "Depositor"),  and
Wilmington Trust Company,  as owner trustee,  in connection with the acquisition
of, transfer to or possession by the  undersigned,  whether as beneficial  owner
(the  "Beneficial  Owner"),  or  nominee  on behalf of the  Beneficial  Owner of
Wachovia Asset Securitization,  Inc. Asset-Backed Certificates,  Series 2003-HE2
(the  "Certificates").  Capitalized  terms used  herein  that are not  otherwise
defined shall have the meanings  ascribed thereto in Appendix A to the indenture
dated as of July 2, 2003,  among the Trust,  the Paying Agent and the  Indenture
Trustee.

     Each holder must complete Part I, Part II (if the holder is a nominee), and
in all cases sign and otherwise complete Part III.

     In addition,  each holder shall submit with the Certificate an IRS Form W-9
relating to such holder.

     To confirm to the Trust that the provisions of Sections 871, 881 or 1446 of
the Internal  Revenue Code (relating to withholding tax on foreign  partners) do
not  apply  in  respect  of  the  Certificates  held  by  the  undersigned,  the
undersigned hereby certifies:

Part I - Complete Either A or B

          A.   Individual as Beneficial Owner

               1.   I am (the Beneficial Owner is ) not a non-resident alien for
                    purposes of U.S. income taxation;

               2.   My (the Beneficial Owner's) name and home address are:

                    -------------------------------------

                    -------------------------------------

                                                         ; and
                    -------------------------------------

               3.   My (the  Beneficial  Owner's) U.S.  taxpayer  identification
                    number (Social Security Number) is                         .
                                                      ------------------------

          B.   Corporate, Partnership or Other Entity as Beneficial Owner

               1.                        (Name of the Beneficial Owner) is not a
                    -------------------
                    foreign corporation, foreign  partnership,  foreign  trust
                    or foreign  estate (as those terms are defined in the Code
                    and Treasury Regulations;

               2.   The   Beneficial   Owner's   office  address  and  place  of
                    incorporation (if applicable) is

                                      F-1

<PAGE>

                    -------------------------------------

                    -------------------------------------

                                                         ; and
                    -------------------------------------

               3.   The Beneficial Owner's U.S. employer  identification  number
                    is                         .
                         ---------------------

Part II - Nominees

     If the undersigned is the nominee for the Beneficial Owner, the undersigned
certifies  that this  Certificate  has been made in  reliance  upon  information
contained in:

                an IRS Form W-9
         ------

                a form such as this or substantially similar
         ------

provided to the  undersigned  by an appropriate  person and (i) the  undersigned
agrees to notify the Trust at least  thirty (30) days prior to the date that the
form  relied  upon  becomes  obsolete,  and (ii) in  connection  with  change in
Beneficial  Owners,  the  undersigned  agrees  to  submit a new  Certificate  of
Non-Foreign Status to the Trust promptly after such change.

Part III - Declaration

     The undersigned,  as the Beneficial  Owner or a nominee thereof,  agrees to
notify the Trust  within sixty (60) days of the date that the  Beneficial  Owner
becomes a foreign person. The undersigned  understands that this certificate may
be  disclosed  to the  Internal  Revenue  Service  by the  Trust  and any  false
statement contained therein could be punishable by fines, imprisonment or both.

     Under penalties of perjury, I declare that I have examined this certificate
and to the best of my knowledge and belief it is true,  correct and complete and
will  further  declare  that I will  inform  the  Trust  of  any  change  in the
information  provided above,  and, if applicable,  I further declare that I have
the authority* to sign this document.

-----------------------------------
               Name

-----------------------------------
      Title (if applicable)

-----------------------------------
          Signature and Date

*NOTE:  If signed  pursuant to a power of attorney,  the power of attorney  must
accompany this certificate.

                                      F-2

<PAGE>

                                   EXHIBIT G

                      FORM OF ERISA REPRESENTATION LETTER

                          ,

Wachovia Asset Securitization, Inc.
8739 Research Drive
NC0121 Suite D
Charlotte, North Carolina 28288-0121

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890

Wachovia Bank, National Association
One Wachovia Center
301 South College Street
Charlotte, North Carolina 28288

U.S. Bank National Association
180 East Fifth Street
St. Paul, Minnesota 55101
Attention: Corporate Trust Services - WASI -- 2003-HE2]

               Re:  Wachovia Asset Securitization, Inc.
                    Asset-Backed Certificates, Series 2003-HE2
                    ------------------------------------------

Dear Sirs:

                                (the  "Transferee")   intends  to  acquire
      -------------------------
from                               (the  "Transferor")  a           % Percentage
      -------------------------                           ---------
Interest  of  Wachovia  Asset Securitization,   Inc.  Asset-Backed Certificates,
Series 2003-HE2 (the "Certificates"), issued pursuant to a trust agreement dated
as of July 2, 2003, among Wachovia Asset  Securitization,  Inc., as depositor
(the "Depositor"),  and Wilmington Trust Company,  as owner trustee (the "Owner
Trustee").  Capitalized  terms used  herein that are not otherwise defined shall
have the meanings  ascribed thereto in Appendix A to the indenture dated as of
July 2, 2003,  among the Trust,  the Paying Agent and the  Indenture Trustee.

     The Transferee hereby certifies,  represents and warrants to, and covenants
with, the Depositor,  the Owner Trustee, the Certificate Registrar, the Enhancer
and the Servicer that:

     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,

                                      G-1

<PAGE>

     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,  as amended (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")  Regulations  Section  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  Regulations   Section
     2510.3-101.

          The   Transferee   is  familiar   with  the   prohibited   transaction
     restrictions and fiduciary responsibility  requirements of Sections 406 and
     407 of ERISA and Section 4975 of the Code and understands  that each of the
     parties to which this certification is made is relying and will continue to
     rely on the statements made herein.

                                            Very truly yours,

                                            ------------------------------------

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

                                      G-2

<PAGE>

                                   EXHIBIT H

                         FORM OF REPRESENTATION LETTER

                          ,

Wachovia Asset Securitization, Inc.
8739 Research Drive
NC0121 Suite D
Charlotte, North Carolina 28288-0121

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890

Wachovia Bank, National Association
One Wachovia Center
301 South College Street
Charlotte, North Carolina 28288

U.S. Bank National Association
180 East Fifth Street
St. Paul, Minnesota 55101
Attention: Corporate Trust Services - WASI -- 2003-HE2

               Re:  Wachovia Asset Securitization, Inc.
                    Asset-Backed Certificates, Series 2003-HE2
                    ------------------------------------------

Dear Sirs:

                                      (the  "Transferee")   intends  to  acquire
              ----------------------
from                      (the  "Transferor") a        % Percentage  Interest of
     -----------------                          ------
of  Wachovia  Asset   Securitization,   Inc.  Asset-Backed Certificates,  Series
2003-HE2 (the "Certificates"),  issued pursuant to a trust agreement  dated as
of July 2, 2003 (the "Trust Agreement"),  Wachovia  Asset Securitization,  Inc.,
as depositor (the "Depositor"), and Wilmington  Trust Company,  as owner trustee
the "Owner Trustee").  Capitalized terms used herein that are not  otherwise
defined  shall have the  meanings  ascribed  thereto in Appendix  A to the
indenture  dated as of July 2, 2003, among the Trust, the Paying Agent and the
Indenture Trustee.

     The Transferee hereby certifies,  represents and warrants to, and covenants
with,  the  Depositor,  the Owner  Trustee,  the  Certificate  Registrar and the
Servicer that:

          (1) the Transferee is acquiring the Certificate for its own behalf and
     is not  acting  as agent or  custodian  for any  other  person or entity in
     connection with such acquisition; and

                                      H-1

<PAGE>

          (2)  the  Transferee  is  not  a  partnership,   grantor  trust  or  S
     corporation  for federal  income tax purposes,  or, if the  Transferee is a
     partnership,  grantor  trust  or  S  corporation  for  federal  income  tax
     purposes,  the  Certificates  are not more  than 50% of the  assets  of the
     partnership, grantor trust or S corporation.

                                            Very truly yours,

                                            ------------------------------------

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

                                      H-2

<PAGE>

                                   EXHIBIT I

                            FORM OF ADDITION NOTICE

DATE:

U.S. Bank National Association              Standard & Poor's, a division of
180 East Fifth Street                       The McGraw-Hill Companies, Inc.
St. Paul, Minnesota 55101                   26 Broadway
Attention: Corporate Trust Services         New York, New York 10004-1064
WASI -- 2003-HE2

Wachovia Asset Securitization, Inc.         Moody's Investors Service, Inc.
 2003-HE2 Trust                             99 Church Street
c/o Wilmington Trust Company,               New York, New York 10007
 as Owner Trustee
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890-0001
Attn: Corporate Trust Administration

Wachovia Bank, National Association         Wilmington Trust Company
401 South Tryon Street-NC 1179,             Rodney Square North
Charlotte, NC 28288,                        1100 North Market Street
Attn:  Structure Finance Trust Services     Wilmington, Delaware 19890-0001

                    Re:  WACHOVIA ASSET SECURITIZATION, INC.
                         -----------------------------------

Ladies and Gentlemen:

     Pursuant to Section 3.05 of the Trust  Agreement,  dated as of July 2, 2003
(the "Trust  Agreement"),  among and Wachovia  Asset  Securitization,  Inc.,  as
Depositor and Wachovia Asset Securitization, Inc. 2003-HE2 Trust, as Issuer, the
Depositor, the Issuer has designated the Subsequent Mortgage Loans identified on
the Mortgage Loan Schedule  attached hereto to be sold to the Issuer
on           ,      , with an aggregate  Principal  Balance of $               .
  ----------   ----                                             --------------
Capitalized terms not otherwise defined herein have the meaning set forth in the
Appendix A  to  the Indenture  dated  as of July 2,  2003,  among  the  Issuer,
the  Paying  Agent and U.S.  Bank  National Association, as indenture trustee.

                                      I-1

<PAGE>

     Please  acknowledge  your  receipt  of this  notice by  countersigning  the
enclosed copy in the space  indicated below and returning it to the attention of
the undersigned.

                                         Very truly yours,

                                         WACHOVIA ASSET SECURITIZATION, INC.,
                                           2003-HE2 TRUST, as Issuer

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

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

                                         WACHOVIA ASSET SECURITIZATION, INC.
                                           as Depositor

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

<PAGE>

                                   EXHIBIT J

                           FORM OF TRANSFER AGREEMENT

     Pursuant to this Subsequent Transfer Agreement No. (the "Agreement"), dated
as  of  ,  ,  among  Wachovia  Asset   Securitization,   Inc.,  as  seller  (the
"Depositor"),  and  Wachovia  Asset  Securitization,  Inc.  2003-HE2  Trust (the
"Issuer")  and  pursuant  to the Trust  Agreement  dated as of July 2, 2003 (the
"Trust  Agreement"),  among the Depositor and the Issuer,  the Depositor and the
Issuer agree to the sale by the  Depositor and the purchase by the Issuer of the
mortgage loans listed on the attached Schedule of Subsequent Mortgage Loans (the
"Subsequent Mortgage Loans").

     Capitalized  terms  used  and not  defined  herein  have  their  respective
meanings as set forth in Appendix A to the  Indenture  dated as of July 2, 2003,
among the Issuer,  Wachovia  Bank,  National  Association,  as Paying Agent (the
"Paying Agent") and U.S. Bank National  Association,  as indenture  trustee (the
"Indenture  Trustee"),  which meanings are incorporated by reference herein. All
other capitalized terms used herein shall have the meanings specified herein.

     Section 1. Sale of Subsequent Mortgage Loans.

     (a) The Depositor,  by the execution and delivery of this  Agreement,  does
hereby sell,  assign,  set over,  and  otherwise  convey to the Issuer,  without
recourse (except as expressly  provided herein and in the Trust Agreement),  all
of its right,  title and  interest,  whether now owned or existing or  hereafter
created,  arising,  or  acquired,  in,  to and  under  the  following:  (i)  the
Subsequent  Mortgage  Loans  identified on the Mortgage  Loan Schedule  attached
hereto as Attachment B and the other  related  Subsequent  Transferred  Property
purchased by the Depositor from the Seller  pursuant to the Purchase  Agreement;
provided,  however,  that the Issuer does not assume any obligations  (including
any  obligations  to  fund  Draws)  arising  under  or  related  to the  Related
Documents.  Such conveyance  shall be deemed to be made: (1) with respect to the
Cut-Off Date Principal Balances,  with respect to the Subsequent Mortgage Loans,
as of the related  Subsequent  Transfer Date; and (2) with respect to the amount
of each Additional  Balance created on or after the Subsequent  Cut-Off Date and
prior to the commencement of the Rapid  Amortization  Period, as of the later of
the related Subsequent Cut-Off Date and the date that the corresponding Draw was
made  pursuant  to the  related  Loan  Agreement,  subject to the receipt by the
Depositor of consideration therefore as provided in Section 3.02(c) of the Trust
Agreement. The Depositor, contemporaneously with the delivery of this Agreement,
has  delivered  or caused to be  delivered  to the Issuer each item set forth in
Section 3.04 of the Trust Agreement.

     The  transfer to the Issuer by the  Depositor  of the  Subsequent  Mortgage
Loans identified on the Mortgage Loan Schedule shall be absolute and is intended
by the parties hereto to constitute a sale by the Depositor to the Issuer on the
Subsequent Transfer Date of all the Depositor's right, title and interest in and
to the  Subsequent  Mortgage  Loans,  and other related  Subsequent  Transferred
Property  as  and  to  the  extent   described  above,  and  the  Issuer  hereby
acknowledges  such transfer.  In the event the transactions set forth herein are
deemed not to be a sale,  the  Depositor  hereby grants to the Issuer a security
interest in all of the Depositor's right, title and interest,  whether now owned
or hereafter acquired,  in, to and under the Subsequent  Transferred Property to
secure all of the Depositor's  obligations  hereunder,  and this Agreement shall
and hereby does  constitute  a security  agreement  under  applicable  law.  The
Depositor

<PAGE>

agrees to take or cause to be taken such actions and to execute such  documents,
including  without  limitation the  authorization and filing of any continuation
statements  with respect to the UCC financing  statements  filed with respect to
the Subsequent  Transferred  Property by the Depositor on the related Subsequent
Transfer Date, if any, and any amendments  thereto  required to reflect a change
in the  name or  corporate  structure  of the  Depositor  or the  filing  of any
additional UCC financing statements due to the change in the principal office or
jurisdiction  of  organization  of the Depositor as are necessary to perfect and
protect the  Issuer's  interests in the  Subsequent  Transferred  Property.  The
Depositor shall file any such continuation  statements or amendments on a timely
basis.

     (b) The  expenses  and costs  relating to the  delivery  of the  Subsequent
Mortgage Loans and the related Subsequent  Transferred Property,  this Agreement
and the Mortgage Loan Purchase Agreement shall be borne by the Depositor.

     (c) Additional terms of the sale are set forth on Attachment A hereto.

     Section 2. Conditions Precedent; Assignment.

     (a) The Depositor hereby affirms the representations and warranties made by
it and set forth in Section  2.09 of the Trust  Agreement as of the date hereof.
The Depositor  hereby  confirms that each of the conditions set forth in Section
2.2(b) of the Mortgage Loan Purchase Agreement have been satisfied in connection
with the Subsequent Transfer Agreement,  dated as of the date hereof,  among the
Seller  and  the  Depositor  as  Purchaser  and  Section  3.05(c)  of the  Trust
Agreement, respectively, are satisfied as of the date hereof.

     (b) The  Depositor is solvent,  is able to pay its debts as they become due
and has  capital  sufficient  to  carry  on its  business  and  its  obligations
hereunder;  it will not be rendered  insolvent by the  execution and delivery of
this  Instrument or by the  performance of its  obligations  hereunder nor is it
aware  of  any  pending  insolvency;  no  petition  of  bankruptcy  (or  similar
insolvency  proceeding)  has been filed by or against the Depositor prior to the
date hereof.

     (c) All  terms  and  conditions  of the  Trust  Agreement  relating  to the
Subsequent Mortgage Loans are hereby ratified and confirmed;  provided, however,
that in the event of any conflict the provisions of this Agreement shall control
over the conflicting provisions of the Mortgage Loan Purchase Agreement.

     (d) The  Depositor  hereby  assigns to the  Issuer  all of the  Depositor's
right, title and interest to and under the Subsequent Transfer Agreement,  dated
as of                 ,    among the  Seller  and the  Depositor  as  Purchaser,
     ----------- ----  ---
including  the  Depositor's  right to  enforce  the  obligations  of the  Seller
thereunder  (including the Seller's  obligation to repurchase  Mortgage Loans as
the result of a breach of the Seller's  representations  and  warranties in such
Subsequent Transfer Agreement and the Purchase Agreement).

     Section 3. GOVERNING LAW. THIS INSTRUMENT  SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS,  RIGHTS AND REMEDIES
OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 4.  Counterparts.  This Instrument may be executed in counterparts,
each of which, when so executed,  shall be deemed to be an original and together
shall constitute one and the same instrument.

<PAGE>

     Section 5.  Successors  and  Assigns.  This  Agreement  shall  inure to the
benefit  of and be  binding  upon the  Depositor  and the  Purchaser  and  their
respective successors and assigns.

                                         WACHOVIA ASSET SECURITIZATION, INC.,
                                           as Depositor

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

                                         WACHOVIA ASSET SECURITIZATION, INC.
                                           2003-HE2 TRUST, as Issuer

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

Acknowledged and Accepted:

U.S. Bank National Association,
  not in its individual capacity
  but solely as Indenture Trustee

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

                                   Attachments
                                   -----------

A.   Additional terms of sale.

B.   Schedule of Subsequent Mortgage Loans.

C.   Depositor's Officer's Certificate.

<PAGE>

               WACHOVIA ASSET SECURITIZATION, INC. 2002-HE1 TRUST

             ATTACHMENT A TO FORM OF SUBSEQUENT TRANSFER AGREEMENT

                               ------------, ----

A.

     1.   Subsequent Cut-Off Date:

     2.   Pricing Date:

     3.   Subsequent Transfer Date:

     4.   Aggregate Principal Balance of the Subsequent Mortgage Loans as of the
          Subsequent Cut-Off Date:

     5.   Purchase  Price:                                               100.00%

B.

As to all Subsequent  Mortgage  Loans:

     1.   Longest stated term to maturity:                                months
                                                                   ------
     2.   Minimum Loan Rate:                                              %
                                                                   ------
     3.   Maximum Loan Rate:                                              %
                                                                   ------

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