Document:

exv10w5

 

Exhibit 10.5

EXECUTION COPY

MASTER MORTGAGE LOAN SALE AND SERVICING AGREEMENT

between

ABN AMRO Mortgage Group, Inc.,

as Seller

and

RWT HOLDINGS, INC.,

as Purchaser

Dated as of July 1, 2006

Conventional

Fixed Rate and Adjustable Rate

Mortgage Loans

 

 

EXHIBITS

EXHIBIT 1MORTGAGE LOAN DOCUMENTS

	 	 	 
	EXHIBIT 2

	 	CONTENTS OF EACH MORTGAGE FILE
	 
	 	 
	EXHIBIT 3

	 	SELLER’S OFFICER’S CERTIFICATE
	 
	 	 
	EXHIBIT 4

	 	OPINION OF COUNSEL
	 
	 	 
	EXHIBIT 5

	 	FORM OF ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT (for

Whole Loan Transfers)
	 
	 	 
	EXHIBIT 6

	 	FORM OF ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT (for

Securitization Transactions)
	 
	 	 
	EXHIBIT 7

	 	FORM OF INDEMNIFICATION AGREEMENT
	 
	 	 
	EXHIBIT 8

	 	FORM OF BRING DOWN LETTER
	 
	 	 
	EXHIBIT 9

	 	SERVICING CRITERIA TO BE ADDRESSED
	 
	 	 
	EXHIBIT 10

	 	ITEM 1122 FORM OF ASSESSMENT OF COMPLANCE
	 
	 	 
	EXHIBIT 11

	 	FORM OF ANNUAL CERTIFICATION

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MASTER MORTGAGE LOAN SALE AND SERVICING AGREEMENT

(ABN AMRO Mortgage Group, Inc. as Seller)

     THIS MASTER MORTGAGE LOAN SALE AND SERVICING AGREEMENT (the “Agreement”), dated as of July 1,
2006, is executed by and between ABN AMRO Mortgage Group, Inc., a Delaware corporation, as seller
and as servicer (“Seller”), and RWT HOLDINGS, INC., a Delaware corporation, as purchaser
(“Purchaser”).

RECITALS:

     A. Seller desires to sell to Purchaser from time to time, and Purchaser desires to purchase
from Seller from time to time, certain conventional fixed rate and adjustable rate residential
first and second lien mortgage loans (the “Mortgage Loans”) as described herein on a
servicing-retained basis, and which shall be delivered as whole loans as provided herein;

     B. Each Mortgage Loan is secured by a mortgage, deed of trust or other security instrument
creating a first or second lien on a residential dwelling located in the jurisdiction indicated on
the related Mortgage Loan Schedule; and

     C. Purchaser and Seller wish to prescribe the manner of the conveyance, servicing and control
of the Mortgage Loans;

     NOW, THEREFORE, in consideration of the premises and mutual agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Purchaser and Seller agree as follows:

     SECTION 1. Definitions. For purposes of this Agreement, the following capitalized
terms shall have the respective meanings set forth below.

     Adjustable Rate Mortgage Loan: A Mortgage Loan with an adjustable interest rate,
which is identified as such on the Mortgage Loan Schedule.

     Adjustment Date: With respect to each Adjustable Rate Mortgage Loan, the date set
forth in the related Mortgage Note on which the Mortgage Interest Rate is adjusted in accordance
with the terms of the related Mortgage Note.

     Agency: Each of Fannie Mae or Freddie Mac, as applicable.

     Agency Guidelines: The guidelines of Fannie Mae and Freddie Mac, including future
updates.

     Agreement: This Master Mortgage Loan Sale and Servicing Agreement including all
exhibits, schedules, amendments and supplements hereto.

     ALTA: The American Land Title Association.

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     Appraised Value: With respect to any Mortgaged Property, the lesser of (i) the value
thereof as determined by a Qualified Appraiser, which meets Seller’s requirements for delivery to
the Agency, made for the originator of the Mortgage Loan at the time of origination of the Mortgage
Loan and (ii) the purchase price paid for the related Mortgaged Property by the Mortgagor with the
proceeds of the Mortgage Loan; provided, however, that, in the case of a Refinanced Mortgage Loan,
such value of the Mortgaged Property is based solely upon the value determined by an appraisal made
for the originator of such Refinanced Mortgage Loan at the time of origination by a Qualified
Appraiser. In the case of a Refinanced Mortgage Loan which is a Streamlined Mortgage Loan, such
value of the Mortgaged Property is based solely on the collateral assessment report made in
connection with the origination of the mortgage loan being refinanced.

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

     Business Day: Any day other than a Saturday or Sunday, or a day on which banking and
savings and loan institutions, in the state where (i) Seller is located or (ii) the Custodial
Account is maintained, are authorized or obligated by law or executive order to be closed.

     Closing Date: The date or dates set forth in a Commitment Letter as the closing date
or dates for the purchase by Purchaser from Seller of Mortgage Loans listed on the Mortgage Loan
Schedule to that Commitment Letter.

     Closing Documents: The documents required to be delivered on the related Closing Date
pursuant to Section 9.

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

     Combined Loan to Value (CLTV): With respect to any Second Lien Mortgage Loan, as of
the date of origination, the ratio, expressed as a percentage, on such date of the outstanding
principal balance of the Second Lien Mortgage Loan, plus the outstanding principal balance of the
First Lien Mortgage Loan, to the lesser of (i) the Appraised Value of the related Mortgage Property
or (ii) the purchase price of the related Mortgaged Property.

     Commission: The United States Securities and Exchange Commission.

     Commitment Letter: A letter agreement between Seller and Purchaser, which
specifically references this Agreement, whereby Seller agrees to sell, and Purchaser agrees to
purchase, certain Mortgage Loans listed on the Mortgage Loan Schedule.

     Condemnation Proceeds: All awards, compensation and settlements in respect of a taking
of all or part of a Mortgaged Property by exercise of the power of condemnation or the right of
eminent domain, to the extent not required to be released to a Mortgagor in accordance with
Customary Servicing Procedures and the related Mortgage Loan Documents.

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     Convertible Mortgage Loan: A Mortgage Loan that by its terms and subject to certain
conditions contained in the related Mortgage or Mortgage Note allows the Mortgagor to convert the
adjustable Mortgage Interest Rate on such Mortgage Loan to a fixed Mortgage Interest Rate.

     Credit Score: The credit score for each Mortgage Loan shall as determined in
accordance with the Underwriting Guidelines.

     Custodial Account: As defined in Section 11.04.

     Customary Servicing Procedures: Those mortgage servicing practices (including
collection practices) of prudent mortgage lending institutions that service mortgage loans of the
same type as a Mortgage Loan in the jurisdiction where the related Mortgage Property is located,.
exercising no less that the same care in performing those practices that they customarily employ
and exercise in servicing and administering mortgage loans for their own account (including
compliance with all applicable federal, state and local laws). The servicing procedures set forth
in Section 11 of this Agreement and the Agency servicing practices and procedures for MBS pool
mortgages, as defined in the Agency Guidelines including future updates, are deemed Customary
Servicing Procedures.

     Cut-off Date: A date denominated as such in a Commitment Letter.

     Cut-off Date Principal Balance: The aggregate Stated Principal Balance of the
Mortgage Loans as of the related Cut-off Date which is determined after the application, to the
reduction of principal, of payments of scheduled principal due on or before the Cut-Off Date,
whether or not collected, and Principal Prepayments received before the Cut-Off Date, provided
however, that Principal Prepayments received for Monthly Payments due after the Cut-Off Date shall
not be applied to reduce the principal balance.

     Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced with a Qualified
Substitute Mortgage Loan in accordance with this Agreement.

     Depositor: The depositor, as such term is identified in Regulation AB, with respect
to a Securitization Transaction.

     Determination Date: With respect to each Remittance Date, the 10th day (or, if such
10th day is not a Business Day, the prior Business Day) of the month in which such Remittance Date
occurs.

     Due Date: The day of the month on which the Monthly Payment is due on a Mortgage
Loan, exclusive of any days of grace.

     Due Period: With respect to each Remittance Date, the period beginning on the first
day of the calendar month, preceding the month of the Remittance Date, and ending on the last day
of the calendar month preceding the Remittance Date.

     Eligible Account: Any of (i) an account or accounts maintained with a federal or
state chartered depository institution or trust company the short-term unsecured debt obligations
of which (or, in the case of a depository institution or trust company that is the principal
subsidiary

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of a holding company, the debt obligations of such holding company) have one of the two
highest short-term ratings of each Rating Agency at the time any amounts held on deposit therein,
or (ii) an account or accounts in a depository institution or trust company in which such accounts
are insured by the FDIC (to the limits established by the FDIC), or (iii) a trust account or
accounts maintained with the trust department of a federal or state chartered depository
institution or trust company, acting in its fiduciary capacity or (iv) any other account acceptable
to each Rating Agency. Eligible Accounts may bear interest.

     Eligible Investments: At any time, any one or more of the following obligations and
securities:

(i) obligations of the United States or any agency thereof, provided that such
obligations are backed by the full faith and credit of the United States;

(ii) general obligations of or obligations guaranteed by any state of the United
States or the District of Columbia receiving the highest long-term debt rating of each
Rating Agency; or such lower ratings as shall not result in the downgrading or
withdrawal of the ratings then assigned to the asset backed securities backed by the
Mortgage Loans, as evidenced by a signed writing delivered by each Rating Agency to the
Purchaser;

(iii) commercial or finance company paper which is then receiving the highest
commercial or finance company paper rating of each Rating Agency rating such paper; or
such lower ratings as shall not result in the downgrading or withdrawal of the ratings
then assigned to the asset backed securities backed by the Mortgage Loans, as evidenced
by a signed writing delivered by each Rating Agency to the Purchaser;

(iv) certificates of deposit, demand or time deposits, or bankers’ acceptances
issued by any depository institution or trust company incorporated under the laws of
the United States or of any state thereof and subject to supervision and examination by
federal and/or state banking authorities, provided that the commercial paper and/or
long-term unsecured debt obligations of such depository institution or trust company
(or in the case of the principal depository institution in a holding company system,
the commercial paper or long-term unsecured debt obligations of such holding company,
but only if Moody’s is not the applicable Rating Agency) are then rated one of the two
highest long-term and the highest short-term ratings of each Rating Agency for such
securities; or such lower ratings as shall not result in the downgrading or withdrawal
of the ratings then assigned to the asset backed securities backed by the Mortgage
Loans, as evidenced by a signed writing delivered by each Rating Agency to the
Purchaser;

(v) demand or time deposits or certificates of deposit issued by any bank or trust
company or savings institution to the extent that such deposits are fully insured by
the FDIC;

(vi) guaranteed reinvestment agreements issued by any bank, insurance company or
other corporation acceptable to the Rating Agencies at the time of the issuance of such
agreements, as evidenced by a signed writing delivered by each Rating Agency;

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(vii) repurchase obligations with respect to any security described in clauses (i)
and (ii) above, in either case entered into with a depository institution or trust
company (acting as principal) described in clause (iv) above;

(viii) securities (other than stripped bonds, stripped coupons or instruments sold at a
purchase price in excess of 115% of the face amount thereof) bearing interest or sold
at a discount issued by any corporation incorporated under the laws of the United
States or any state thereof which, at the time of such investment, have one of the two
highest long-term ratings of each Rating Agency (except if the Rating Agency is
Moody’s, such rating shall be the highest commercial paper rating of Moody’s for any
such series; or such lower ratings as shall not result in the downgrading or withdrawal
of the ratings then assigned to the asset backed securities backed by the Mortgage
Loans, as evidenced by a signed writing delivered by each Rating Agency to the
Purchaser;

(ix) interests in any money market fund which at the date of acquisition of the
interests in such fund and throughout the time such interests are held in such fund has
the highest applicable rating by each Rating Agency rating such fund; or such lower
ratings as shall not result in the downgrading or withdrawal of the ratings then
assigned to the asset backed securities backed by the Mortgage Loans, as evidenced by a
signed writing delivered by each Rating Agency to the Purchaser;

(x) short-term investment funds sponsored by any trust company or national banking
association incorporated under the laws of the United States or any state thereof which
on the date of acquisition has been rated by each applicable Rating Agency in their
respective highest applicable rating category; and or such lower ratings as shall not
result in the downgrading or withdrawal of the ratings then assigned to the asset
backed securities backed by the Mortgage Loans, as evidenced by a signed writing
delivered by each Rating Agency to the Purchaser;

(xi) such other investments having a specified stated maturity and bearing interest
or sold at a discount acceptable to the Rating Agencies as evidenced by a signed
writing delivered by each Rating Agency;

provided, that no such instrument shall be an Eligible Investment if (i) such instrument evidences
the right to receive interest only payments with respect to the obligations underlying such
instrument, (ii) such instrument would require the Depositor to register as an investment company
under the Investment Company Act of 1940, as amended.

     Escrow Account: As defined in Section 11.06.

     Escrow Payments: The amounts constituting ground rents, taxes, assessments, Primary
Mortgage Insurance Policy premiums, fire, hazard, flood or earthquake insurance premiums and other
payments as may be required to be escrowed by the Mortgagor with the Mortgagee pursuant to the
terms of any Mortgage Note or Mortgage.

     Event of Default: Any one of the conditions or circumstances enumerated in Section
13.01.

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

     Fannie Mae: The entity formerly known as Federal National Mortgage Association
(FNMA), or any successor thereto.

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

     Fidelity Bond: The fidelity bond required to be obtained by Seller pursuant to
Section 11.12.

     First Lien Mortgage: A mortgage lien on a Mortgaged Property which is first in
priority to any other mortgage liens on that Mortgaged Property.

     First Lien Mortgage Loan: A Mortgage Loan secured by a First Lien Mortgage on the
related Mortgaged Property.

     Fixed Rate Mortgage Loan: A Mortgage Loan with a fixed interest rate, which is
identified as such on the Mortgage Loan Schedule.

     Freddie Mac: Federal Home Loan Mortgage Corporation (FHLMC), or any successor
thereto.

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

     HUD: The Department of Housing and Urban Development or any federal agency or
official thereof which may from time to time succeed to the functions thereof.

     Index: With respect to each Adjustable Rate Mortgage Loan, the index set forth in the
related Mortgage Note for the purpose of calculating the interest rate as stated in the Mortgage
Note.

     Insurance Proceeds: With respect to each Mortgage Loan, proceeds of insurance
policies insuring the Mortgage Loan or the related Mortgaged Property.

     IO Mortgage Loan: A Mortgage Loan with respect to which interest only is payable by a
Mortgagor on each Due Date until the IO Conversion Date.

     IO Conversion Date: With respect to an IO Mortgage Loan, the date that the “interest
only” period ends.

     Liquidating Loan: A Mortgage Loan whose related Mortgaged Property has become an REO
Property in whole or partial satisfaction of the Mortgage Loan.

     Liquidation Proceeds: The proceeds received in connection with the liquidation of a
defaulted Mortgage Loan through trustee’s sale, foreclosure sale or otherwise, other than

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amounts received following the acquisition of REO Property, Insurance Proceeds and Condemnation
Proceeds.

     Loan-to-Value Ratio (LTV): With respect to any First Lien Mortgage Loan, as of the
date of origination, the ratio, expressed as a percentage, on such date of the outstanding
principal balance of the First Lien Mortgage Loan, to the lesser of (i) the Appraised Value of the
related Mortgaged Property or (ii) the purchase price of the related Mortgaged Property.

     LPMI Fee: The portion of the Mortgage Interest Rate relating to an LPMI Loan to be
retained by Seller to pay the premium due on the Primary Mortgage Insurance Policy with respect to
such LPMI Loan.

     LPMI Loan: Any Mortgage Loan with respect to which Seller is responsible for paying
the premium due on the related Primary Mortgage Insurance Policy with the proceeds generated by the
LPMI Fee relating to such Mortgage Loan.

     Master Servicer: With respect to any Securitization Transaction, the “master
servicer”, if any, identified in the related transaction documents.

     Maximum Mortgage Interest Rate: With respect to each Adjustable Rate Mortgage Loan, a
rate that is set forth in the related Mortgage Note as the absolute maximum interest rate to which
the Mortgage Interest Rate on such Mortgage Loan may be increased.

     Minimum Mortgage Interest Rate: With respect to each Adjustable Rate Mortgage Loan, a
rate that is set forth in the related Mortgage Note as the absolute minimum interest rate to which
the Mortgage Interest Rate on such Mortgage Loan may be decreased.

     Monthly Payment: With respect to any Mortgage Loan, the scheduled monthly payment of
principal and/or interest payable by a Mortgagor under the related Mortgage Note on each Due Date.

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

     Mortgage File: With respect to any Mortgage Loan, the items listed in Exhibit
2 hereto.

     Mortgage Interest Rate: With respect to each Mortgage Loan, the annual rate at which
interest accrues on such Mortgage Loan from time to time in accordance with the provisions of the
related Mortgage Note.

     Mortgage Loan: Each mortgage loan sold, assigned and transferred pursuant to this
Agreement and identified on the Mortgage Loan Schedule, including, without limitation, the Mortgage
File, the Monthly Payments, Principal Prepayments, Liquidation Proceeds, Condemnation Proceeds,
Insurance Proceeds, REO Disposition Proceeds, and all other rights, benefits, proceeds and
obligations arising from or in connection with such Mortgage Loan other than the servicing rights
with respect thereto.

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     Mortgage Loan Documents: With respect to any Mortgage Loan, the documents listed in
Exhibit 1 hereto.

     Mortgage Loan Package: The pool or group of Mortgage Loans purchased on a Closing
Date, pursuant to a Commitment Letter.

     Mortgage Loan Remittance Rate: As to each Mortgage Loan, the annual rate of interest
payable to Purchaser, which shall be equal to the related Mortgage Interest Rate minus the related
Servicing Fee Rate and the LPMI Fee, if applicable.

     Mortgage Loan Schedule: The schedule setting forth the following information with
respect to each Mortgage Loan as of the related Closing Date:

	 	(1)	 	Seller’s Mortgage Loan identifying number;
	 
	 	(2)	 	Mortgagor’s name;
	 
	 	(3)	 	Mortgagor’s social security number;
	 
	 	(4)	 	Street address of the Mortgaged Property;
	 
	 	(5)	 	State in which the Mortgaged Property is located;
	 
	 	(6)	 	Zip code of the Mortgaged Property;
	 
	 	(7)	 	The code indicating the occupancy status of the Mortgaged Property;
	 
	 	(8)	 	Type of Residential Dwelling constituting the Mortgaged Property;
	 
	 	(9)	 	Original months to maturity;
	 
	 	(10)	 	The code indicating purpose of the Mortgage Loan;
	 
	 	(11)	 	The code indicating Mortgage Loan type;
	 
	 	(12)	 	The code indicating whether the Mortgage Loan is subject to a Primary
	 
	 	 	 	Mortgage Insurance Policy, the percent of coverage and the Primary
	 
	 	 	 	Mortgage Insurance Policy certificate number;
	 
	 	(13)	 	Appraised Value of the Mortgaged Property;
	 
	 	(14)	 	Purchase price of the Mortgaged Property, if applicable;
	 
	 	(15)	 	Mortgagor’s Credit Score at the time of origination;
	 
	 	(16)	 	Mortgage Loan funding date;
	 
	 	(17)	 	Loan-to-Value Ratio at origination;
	 
	 	(18)	 	Mortgage Interest Rate at origination;
	 
	 	(19)	 	Date on which the first Monthly Payment is due;
	 
	 	(20)	 	Stated maturity date;
	 
	 	(21)	 	Monthly Payment amount as of the related Cut-off Date;
	 
	 	(22)	 	Original principal amount;
	 
	 	(23)	 	Stated Principal Balance;
	 
	 	(24)	 	First payment Adjustment Date, if applicable;
	 
	 	(25)	 	Gross Margin, if applicable;
	 
	 	(26)	 	Maximum Mortgage Interest Rate, if applicable;
	 
	 	(27)	 	Minimum Mortgage Interest Rate, if applicable;
(28) Periodic Rate Cap, if applicable;
	 
	 	(29)	 	First interest rate Adjustment Date, if applicable;
	 
	 	(30)	 	Index, if applicable;
	 
	 	(31)	 	The code indicating whether the Mortgage Loan is a Second Lien
	 
	 	 	 	Mortgage Loan;

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	 	(32)	 	With respect to any Second Lien Mortgage Loan, the Combined
Loan-to-Value Ratio (“CLTV ) at origination;
	 
	 	(33)	 	Line of credit amount, if applicable.

     Mortgage Note: The original executed note evidencing the indebtedness of a Mortgagor
under a Mortgage Loan.

     Mortgaged Property: The real property, consisting of a fee simple interest or
leasehold estate in single or multiple parcels of real property improved by a Residential Dwelling,
which secures repayment of the debt evidenced by the related Mortgage Note.

     Mortgagee: The mortgagee or beneficiary named in the Mortgage and the successors and
assigns of such mortgagee or beneficiary.

     Mortgagor: The obligor on a Mortgage Note.

     Officer’s Certificate: A certificate signed by a Vice President or higher ranking
officer and by the Treasurer or the Secretary or one of the Assistant Secretaries of Seller, or
signed by other duly authorized officers or agents of Seller, and delivered to Purchaser as
required by this Agreement.

     Opinion of Counsel: A written opinion of counsel, who may be salaried counsel
employed by Seller, reasonably acceptable to Purchaser.

     P&I Advance: As defined in Section 11.17.

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

     Person: An individual, corporation, partnership, joint venture, association,
joint-stock company, limited liability company, trust, unincorporated organization or government or
any agency or political subdivision thereof.

     Prepayment Interest Shortfall: As to any Remittance Date and any Mortgage Loan, if
such Mortgage Loan was the subject of a full Principal Prepayment during the Due Period, the excess
of one month’s interest (adjusted to the Mortgage Loan Remittance Rate) on the Stated Principal
Balance of such Mortgage Loan outstanding immediately prior to such prepayment, over the amount of
interest (adjusted to the Mortgage Loan Remittance Rate) actually paid by the Mortgagor in respect
of such Due Period.

     Primary Mortgage Insurance Policy: A policy of primary mortgage guaranty insurance
issued by an insurer acceptable to the Agency.

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

     Purchase Price: The price paid on the related Closing Date by Purchaser to Seller
pursuant to a Commitment Letter and this Agreement in exchange for the Mortgage Loans listed on the
Mortgage Loan Schedule, which price shall be the percentage of par set forth in the Commitment
Letter times the Cut-off Date Principal Balance of those Mortgage Loans.

     Purchaser: The Person listed as such in the initial paragraph of this Agreement,
together with its successors and assigns as permitted under the terms of this Agreement.

     Purchaser’s Agent: One or more agents of Purchaser, as specified by Purchaser, which
shall be deemed to include both any Master Servicer and any Depositor.

     Qualified Correspondent: Any Person from which Seller purchased Mortgage Loans,
provided that the following conditions are satisfied: (i) such Mortgage Loans were originated
pursuant to an agreement between Seller and such Person that contemplated that such Person would
underwrite mortgage loans from time to time, for sale to Seller, in accordance with underwriting
guidelines designated by Seller (“Designated Guidelines”) or guidelines that do not vary materially
from such Designated Guidelines; (ii) such Mortgage Loans were in fact underwritten as described in
clause (i) above and were acquired by Seller within 180 days after origination; (iii) either (x)
the Designated Guidelines were, at the time such Mortgage Loans were originated, used by Seller in
origination of mortgage loans of the same type as the Mortgage Loans for Seller’s own account or
(y) the Designated Guidelines were, at the time such Mortgage Loans were underwritten, designated
by Seller on a consistent basis for use by lenders in originating mortgage loans to be purchased by
Seller; and (iv) Seller employed, at the time such Mortgage Loans were acquired by Seller,
pre-purchase or post-purchase quality assurance procedures (which may involve, among other things,
review of a sample of mortgage loans purchased during a particular time period or through
particular channels) designed to ensure that Persons from which it purchased mortgage loans
properly applied the underwriting criteria designated by Seller.

     Qualified Appraiser: With respect to each Mortgage Loan, an appraiser, duly appointed
by the originator, who had no interest, direct or indirect, in the Mortgaged Property or in any
loan made on the security thereof, and whose compensation is not affected by the approval or
disapproval of the Mortgage Loan, and such appraiser and appraisal satisfies the requirements of
the Agency and Title XI of FIRREA and the regulations promulgated thereunder, if applicable.

     Qualified Insurer: An insurance company duly qualified as such under the laws of the
states in which the Mortgage Properties are located, duly authorized and licensed in such states to
transact the applicable insurance business and to write the insurance provided by the insurance
policy issued by it, approved as an insurer by the Agency.

     Qualified Substitute Mortgage Loan: A mortgage loan substituted by Seller for a
Deleted Mortgage Loan which must, on the date of such substitution, be approved by Purchaser and
(i) have a Stated Principal Balance, after deduction of the principal portion of the Monthly
Payment

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due in the month of substitution, not in excess of, and not materially less than, the Stated
Principal Balance of the Deleted Mortgage Loans;, (ii) have a Mortgage Interest Rate equal to that
of the Deleted Loans; (iii) have a remaining term to maturity not greater than (and not more than
one year less than) that of the Deleted Mortgage Loan, (iv) be secured by a Mortgage Property of
the same type and occupancy status as secured the Deleted Mortgage Loan, (v) have a Loan-to-Value
Ratio at origination no greater than that of the Deleted Mortgage Loan, (vi) have the same lien
priority as that of the Deleted Mortgage Loan, (vii) be, as of the date of substitution, in
material compliance with each representation and warranty set forth in Section 6.01, and (viii) be
current in payment of principal and interest.

     Rating Agencies: Standard & Poor’s, Moody’s Investors Services, Inc., Fitch, Inc. or,
in the event that some or all ownership of the Mortgage Loans is evidenced by mortgage-backed
securities, the nationally recognized rating agencies issuing ratings with respect to such
securities, if any.

     Reconstitution: A Securitization Transaction or a Whole Loan Transfer.

     Reconstitution Agreement: Any of the agreement or agreements entered into by
Purchaser and/or certain third parties, and if necessary Seller, on the Reconstitution Date or
Dates with respect to any or all of the Mortgage Loans conveyed hereunder, in connection with a
Reconstitution as described in Section 11.24, pursuant to which Seller shall recognize the
Transferee as the owner of the Mortgage Loans and covenant to service the Mortgage Loans for the
Transferee in accordance with the terms and conditions of this Agreement.

     Reconstitution Date: The date or dates on which any or all of the Mortgage Loans
purchased pursuant to this Agreement shall be reconstituted as part of a Reconstitution.

     Record Date: The close of business of the last Business Day of the month preceding
the month of the related Remittance Date.

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

     Regulation AB: Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time and subject to such clarification and
interpretation as have been provided by the Commission in the adopting release (Asset-Backed
Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005) or by the
staff of the Commission, or as may be provided by the Commission or its staff from time to time.

     REMIC: A “real estate mortgage investment conduit” within the meaning of Section 860D
of the Code.

     REMIC Provisions: Provisions of the federal income tax law relating to a REMIC, which
appear at Section 860A through 860G of Subchapter M of Chapter 1, Subtitle A of the Code, and
related provisions and regulations promulgated thereunder, as the foregoing may be in effect from
time to time.

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     Remittance Date: The 18th day of each month, beginning the month following the month
of the related Cut-off Date (or, if such day is not a Business Day, the Business Day immediately
prior to 18th day of the month).

     REO Disposition: The final sale by Seller of an REO Property.

     REO Disposition Proceeds: All amounts received with respect to an REO Disposition
pursuant to Section 11.13.

     REO Property: A Mortgaged Property acquired by Purchaser through foreclosure or deed
in lieu of foreclosure, as described in Section 11.13.

     Repurchase Price: With respect to any Mortgage Loan, a price equal to (i) the Stated
Principal Balance of Mortgage Loan as of the date of repurchase, plus (ii) interest on such Stated
Principal Balance at the Mortgage Loan Remittance Rate to the last Due Date through which interest
has been paid on behalf of the Mortgagor or advanced by Seller, minus (iii) amounts received in
respect of such repurchased Mortgage Loan which are being held in the Custodial Account for
distribution in connection with such Mortgage Loan.

     Residential Dwelling: Any one of the following: (i) a detached one-family dwelling,
(ii) a detached two- to four-family dwelling, (iii) a one-family dwelling unit in a condominium
project, or (iv) a one-family dwelling in a planned unit development.

     Second Lien Mortgage: A mortgage lien on a Mortgaged Property which is first in
priority to any other mortgage liens on that Mortgaged Property except the lien of a First Lien
Mortgage.

     Second Lien Mortgage Loan.: A Mortgage Loan secured by a Second Lien Mortgage on the
related Mortgaged Property.

     Securities Act: The Securities Act of 1933, as amended.

     Securitization Transaction: Any transaction on or after January 1, 2006, involving
either (1) a sale or other transfer of some or all of the Mortgage Loans directly or indirectly to
an issuing entity in connection with an issuance of publicly offered, rated or unrated
mortgage-backed securities or (2) an issuance of publicly offered, rated or unrated securities, the
payments on which are determined primarily by reference to one or more portfolios of residential
mortgage loans consisting, in whole or in part, of some or all of the Mortgage Loans.

     Seller: The Person defined as such in the initial paragraph of this Agreement,
together with its successors and assigns as permitted under the terms of this Agreement.

     Seller Information: Collectively, any information, report, certification, data,
accountants’ letter or other material provided under Section 11A by or on behalf of Seller, or
provided under Section 11A by or on behalf of any Subservicer, Subcontractor or Third-Party
Originator.

     Servicing Advances: All customary, reasonable and necessary out-of-pocket costs and
expenses incurred in the performance by Seller of its servicing obligations, including, but not

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limited to, the cost of (a) the preservation, restoration and protection of the Mortgaged Property,
(b) any enforcement or judicial proceedings, including foreclosures, (c) the management and
liquidation of the Mortgaged Property if the Mortgaged Property is acquired in satisfaction of the
Mortgage and (d) payments made by Seller with respect to a Mortgaged Property pursuant to this
Agreement.

     Servicing Criteria: The “servicing criteria” of Item 1122(d) of Regulation AB
affirmatively identified on Exhibit 9, provided that Exhibit 9 may be amended from time to time to
reflect changes in Regulation AB.

     Servicing Fee: With respect to each Mortgage Loan, the amount of the annual fee
Purchaser shall pay to Seller, which shall, for each month, be equal to one-twelfth of the product
of the Servicing Fee Rate and the principal balance of such Mortgage Loan.

     Servicing Fee Rate: With respect to each Mortgage Loan, an amount equal to the
percentage per annum shown in the related Commitment Letter.

     Servicing Guidelines: Such manuals, guides and bulletins as may be published by the
Agency from time to time.

     Standard & Poor’s: Standard & Poor’s Rating Services, a division of the McGraw Hill
Companies Inc., and its successors in interest.

     Standard & Poor’s Glossary: The Standard & Poor’s LEVELS ® Glossary, as may be in
effect from time to time.

     Stated Principal Balance: As to each Mortgage Loan as of any date of determination,
(i) the principal balance of the Mortgage Loan at the related Cut-off Date after giving effect to
payments of principal due on or before such date, whether or not received, minus (ii) all amounts
previously distributed to Purchaser with respect to the Mortgage Loan representing payments or
recoveries of principal, or advances in lieu thereof.

     Static Pool Information: Static pool information as described in Item 1105 of
Regulation AB.

     Streamlined Mortgage Loan: A Mortgage Loan originated as a refinancing of a prior
mortgage loan pursuant to Seller’s streamlined loan documentation program then in effect.

     Subcontractor: Any vendor, subcontractor or other Person that is not responsible for
the overall servicing (as “servicing” is commonly understood by participants in the mortgage-backed
securities market) of Mortgage Loans but performs one or more discrete functions identified in Item
1122(d), and Instruction No. 2 of the Instructions to Item 1122, of Regulation AB with respect to
Mortgage Loans under the direction or authority of Seller or a Subservicer.

     Subservicer: Any Person that services Mortgage Loans on behalf of Seller or any
Subservicer and is responsible for the performance (whether directly or through Subservicers or
Subcontractors) of a substantial portion of the material servicing functions required to be

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performed by Seller under this Agreement or any Reconstitution Agreement that are identified in
Item 1122(d) of Regulation AB.

     Third-Party Originator: Each Person, other than a Qualified Correspondent, that
originated Mortgage Loans acquired by Seller.

     Transferee: The party to whom Purchaser transfers Mortgage Loans pursuant to a
Reconstitution.

     Underwriting Guidelines: The underwriting guidelines of the originator of the
Mortgage Loan in effect at the time of origination, with exceptions thereto exercised in a
reasonable manner.

     Whole Loan Transfer: The sale or transfer by Purchaser of some or all of the Mortgage
Loans to a third party in a whole loan format.

     SECTION 2. Purchase and Conveyance. Seller agrees to sell and Purchaser agrees to
purchase on each Closing Date, in exchange for the payment of the Purchase Price by Purchaser on
the related Closing Date, without recourse, but subject to the terms of this Agreement, all rights,
title and interest of Seller in and to Mortgage Loans listed on the related Mortgage Loan Schedule
and having the Cut-off Date Principal Balance set forth on the related Mortgage Loan Schedule,
together with the related Mortgage Files and all rights and obligations arising under the documents
contained therein other than the servicing rights thereto. The sale of the Mortgage Loans by
Seller is on a servicing-retained basis with a servicing fee as set out in the related Commitment
Letter.

     With respect to each Mortgage Loan purchased, Purchaser shall own and be entitled to receive:
(a) all scheduled principal due after the related Cut-off Date, (b) all other payments and/or
recoveries of principal collected after the related Cut-off Date (provided, however, that all
scheduled payments of principal due on or before the related Cut-off Date and collected by Seller
after the related Cut-off Date shall belong to Seller) and (c) all payments of interest on the
Mortgage Loans net of the LPMI fee and the Servicing Fee (minus that portion of any such interest
payment that is allocable to the period prior to the related Cut-off Date).

     For the purposes of this Agreement, payments of scheduled principal and interest prepaid for a
Due Date beyond the related Cut-off Date shall not be applied to reduce the Stated Principal
Balance as of the related Cut-off Date. Such prepaid amounts (minus the applicable Servicing Fee)
shall be the property of Purchaser. Seller shall remit for deposit any such prepaid amounts into
the Custodial Account, which account is established for the benefit of Purchaser, for remittance by
Seller to Purchaser on the appropriate Remittance Date. All payments of principal and interest,
less the applicable Servicing Fee, due on a Due Date following the related Cut-off Date shall
belong to Purchaser.

     SECTION 3. Mortgage Loan Schedule. Seller shall deliver the Mortgage Loan Schedule to
Purchaser at least one (1) Business Day prior to the related Closing Date.

     SECTION 4. Purchase Price. Subject to the conditions set forth herein, Purchaser
shall pay the Purchase Price, plus accrued interest on the Cut-Off Date Principal Balance at the

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weighted average Mortgage Loan Remittance Rate from the related Cut-off Date through the day prior
to the related Closing Date, both inclusive, to Seller by 2:00 p.m. Eastern Time on the related
Closing Date. Such payment shall be made by wire transfer of immediately available funds to the
account designated by Seller.

     SECTION 5. Delivery of Mortgage Loan Documents.

     Section 5.01. Possession of Mortgage Files.

     The contents of each Mortgage File required to be retained by Seller to service the Mortgage
Loans pursuant to the Agreement, and thus not delivered to Purchaser or its designee, are and shall
be held by Seller for the benefit of Purchaser as the owner thereof. Seller’s possession of any
portion of each such Mortgage File is at the will of Purchaser for the sole purpose of facilitating
servicing of the Mortgage Loans pursuant to the Agreement, and such retention and possession by
Seller shall be in a custodial capacity only. The ownership of each Mortgage Note, Mortgage and
the contents of the Mortgage File is vested in Purchaser and the ownership of all records and
documents with respect to the related Mortgage Loan prepared by or which come into the possession
of Seller shall immediately vest in Purchaser and shall be retained and maintained by Seller at the
will of Purchaser in such custodial capacity only. The Mortgage File retained by Seller with
respect to each Mortgage Loan pursuant to this Agreement shall be appropriately identified in
Seller’s computer system to reflect clearly the sale of such related Mortgage Loan to Purchaser.

     Section 5.02. Books and Records.

     All rights arising out of the Mortgage Loans, including, but not limited to, all funds
received by Seller after the related Cut-off Date on or in connection with a Mortgage Loan as
provided in Section 2, shall be vested in Purchaser; provided, however, that all such funds
received on or in connection with a Mortgage Loan as provided in Section 2 shall be received and
held by Seller for the benefit of Purchaser as the owner of the Mortgage Loans pursuant to the
terms of this Agreement.

     As more fully set forth in Section 20, it is the express intention of the parties that the
transactions contemplated by this Agreement be, and be construed as, a sale of the Mortgage Loans
by Seller and not a pledge of the Mortgage Loans by Seller to Purchaser to secure a debt or other
obligation of Seller. Consequently, the sale of each Mortgage Loan shall be reflected as a
purchase on Purchaser’s business records, tax returns and financial statements, and as a sale of
assets on Seller’s business records, tax returns and financial statements.

     Section 5.03. Delivery of Mortgage Loan Documents.

     The Seller shall deliver and release to Purchaser or its designee the Mortgage Loan Documents
no later than five (5) Business Days prior to the related Closing Date. If Seller cannot deliver
the original recorded Mortgage Loan Documents on the related Closing Date, Seller shall, promptly
upon receipt thereof and in any case not later than 240 days from the Closing Date, deliver such
original recorded documents to Purchaser or its designee (unless Seller is delayed in making such
delivery by reason of the fact that such documents shall not have been returned by the appropriate
recording office). If delivery is not completed within 240 days of the

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related Closing Date solely because such documents shall not have been returned by the appropriate
recording office, Seller shall, at Purchaser written request, deliver such document to Purchaser,
or its designee, within such time period as specified in a Seller’s Officer’s Certificate. In the
event that documents have not been received by the date specified in Seller’s Officer’s
Certificate, a subsequent Seller’s Officer’s Certificate shall be delivered by such date specified
in the prior Seller’s Officer’s Certificate, stating a revised date for receipt of documentation.
The procedure shall be repeated until the documents have been received and delivered. Seller shall
use its best efforts to effect delivery of all delayed recorded documents within 180 days of the
related Closing Date. If delivery of all Mortgage Loan Documents with respect to any Mortgage Loan
is not completed within 270 days of the related Closing Date then, at Purchaser’s option, Seller
shall repurchase at the Repurchase Price in accordance with Section 6.03.

     Any review by Purchaser or its designee of the Mortgage Files shall in no way alter or reduce
Seller’s obligations hereunder.

     If Purchaser or its designee discovers any defect with respect to any document constituting
part of a Mortgage File, Purchaser shall, or shall cause its designee to, give written
specification of such defect to Seller and Seller shall cure or repurchase such Mortgage Loan at
the Repurchase Price in accordance with Section 6.03.

     Seller shall forward to Purchaser, or its designee, copies of documents evidencing an
assumption, modification, consolidation or extension of any Mortgage Loan entered into within
thirty days of their execution and shall also provide the original of any document submitted for
recordation or a copy of such document certified by the appropriate public recording office to be a
true and complete copy of the original within thirty days of its return from the appropriate public
recording office.

     SECTION 6. Representations, Warranties and Covenants of Seller; Remedies for Breach.

     Section 6.01. Representations and Warranties Regarding Individual Mortgage Loans.

     Seller hereby represents and warrants to Purchaser that, as to each Mortgage Loan, as of the
related Closing Date or such other date prior thereto as specified herein:

          (a) The information set forth in the Mortgage Loan Schedule, including any diskette or other
related data tape sent to Purchaser is true and correct in all material respects.

          (b) There are no delinquent taxes, ground rents, governmental assessments, leasehold payments
or other outstanding charges affecting the lien priority of the related Mortgage.

          (c) The terms of the Mortgage Note and the Mortgage have not been waived, altered or modified
in any respect, except by written instruments, and the Mortgage has been recorded or sent for
recording, if necessary to maintain the lien priority of the Mortgage. The substance of any such
waiver, alteration or modification has been approved by the insurer under the Primary Mortgage
Insurance Policy, if any, the title insurer, to the extent required by the related policy and is
reflected on the Mortgage Loan Schedule.

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          (d) No event has occurred which would give Mortgagor any right of rescission, set-off, or
defense of usury, nor will the operation of any of the terms of the Mortgage Note and the Mortgage,
or the exercise of any right thereunder, render either the Mortgage Note or the Mortgage
unenforceable in whole or in part (except as enforceability may be limited by bankruptcy,
insolvency, liquidation, receivership, moratorium, reorganization, or other similar laws affecting
the enforcement of the rights of creditors and by general principles of equity, whether enforcement
is sought in a proceeding in equity or at law) or subject to any right of rescission, set-off,
counterclaim or defense, including the defense of usury, and no such right of rescission, set-off,
counterclaim or defense has been asserted with respect thereto and the Mortgagor was not a debtor
in any state or federal bankruptcy or insolvency proceedings and the time the Mortgage Loan was
originated.

          (e) All buildings upon the Mortgaged Property are insured by a Qualified Insurer against loss
by fire, hazards of extended coverage and such other hazards as are customary in the area where the
Mortgaged Property is located, pursuant to insurance policies conforming to the requirements of
Section 11.10 of this Agreement. All such insurance policies contain a standard mortgagee clause
naming Seller or the originator of the Mortgage Loan, and its successors and assigns, as mortgagee.
If the Mortgaged Property is in an area identified on a flood hazard map or flood insurance rate
map issued by the Federal Emergency Management Agency as a special flood hazard area (and such
flood insurance has been made available), a flood insurance policy meeting the requirements of the
current guidelines of the National Flood Insurance Program is in effect and such policy conforms to
the Agency Guidelines. The Mortgage obligates the Mortgagor thereunder to maintain all such
insurance at the Mortgagor’s cost and expense and, on the Mortgagor’s failure to do so, authorizes
the holder of the Mortgage to maintain such insurance at Mortgagor’s cost and expense and to seek
reimbursement therefor from the Mortgagor.

          (f) Seller has complied with all requirements of federal law, and, to the extent not preempted
thereby, state or local law applicable to the origination or servicing of the Mortgage Loan,
including, without limitation, fair housing, usury, truth in lending, real estate settlement
procedures, consumer credit protection, equal credit opportunity, or disclosure laws. No Mortgage
Loan is (a) subject to the provisions of the Homeownership and Equity Protection Act of 1994 as
amended (“HOEPA”), (b) a “high cost” mortgage loan, “covered” mortgage loan, “high risk home”
mortgage loan, or “predatory” mortgage loan or any comparable term, no matter how defined under any
federal, state or local law, (c) subject to any comparable federal, state or local statutes or
regulations, or any other statute or regulation providing for heightened regulatory scrutiny or
assignee liability to holders of such mortgage loans, or (d) a High Cost Loan or Covered Loan, as
applicable (as such terms are defined in the current Standard & Poor’s LEVELS Glossary Revised,
Appendix E). With respect to each Mortgage Loan, Seller has complied with all applicable
anti-money laundering laws and regulations, including without limitation the USA Patriot Act of
2001 (collectively, the “Anti-Money Laundering Laws”).The origination, servicing and collection
practices with respect to each Mortgage Note and Mortgage have been legal and in accordance with
applicable laws and regulations, and in all material respects in accordance with Customary
Servicing Procedures.

          (g) The Mortgage has not been satisfied, canceled, or rescinded, or, in the case of a First
Lien Mortgage, subordinated, and the Mortgaged Property has not been fully released

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from the lien of the Mortgage, nor has any instrument been executed that would effect any such
satisfaction, cancellation, rescission, release, or, in the case of a First Lien Mortgage,
subordination.

          (h) If the Mortgage Loan is a First Lien Mortgage Loan, the Mortgage is a valid, existing and
enforceable First Lien Mortgage on the Mortgaged Property, including all improvements on the
Mortgaged Property, except as enforceability may be limited by bankruptcy, insolvency, liquidation,
receivership, moratorium, reorganization, or other similar laws affecting the enforcement of the
rights of creditors and by general principles of equity, whether enforcement is sought in a
proceeding in equity or at law, and subject only to (i) the lien of current real property taxes and
assessments not yet due and payable, (ii) covenants, conditions and restrictions, rights of way,
easements and other matters of the public record as of the date of recording being acceptable to
mortgage lending institutions which do not materially affect adversely the Appraised Value of the
Mortgaged Property, and (iii) other matters to which like properties are commonly subject which do
not materially interfere with the benefits of the security intended to be provided by the Mortgage
or the use, enjoyment, value or marketability of the related Mortgaged Property

          (i) If the Mortgage Loan is a Second Lien Mortgage Loan, the Mortgage is a valid, existing and
enforceable Second Lien Mortgage on the Mortgaged Property, including all improvements on the
Mortgaged Property, except as enforceability may be limited by bankruptcy, insolvency, liquidation,
receivership, moratorium, reorganization, or other similar laws affecting the enforcement of the
rights of creditors and by general principles of equity, whether enforcement is sought in a
proceeding in equity or at law, and subject only to (i) the First Lien Mortgage, (ii) the lien of
current real property taxes and assessments not yet due and payable, (iii) covenants, conditions
and restrictions, rights of way, easements and other matters of the public record as of the date of
recording being acceptable to mortgage lending institutions which do not materially affect
adversely the Appraised Value of the Mortgaged Property, and (iv) other matters to which like
properties are commonly subject which do not materially interfere with the benefits of the security
intended to be provided by the Mortgage or the use, enjoyment, value or marketability of the
related Mortgaged Property.

          (j) The Mortgage Note and the related Mortgage are genuine and each is the legal, valid and
binding obligation of the maker thereof, enforceable in accordance with its terms, except as
enforceability may be limited by (i) bankruptcy, insolvency, liquidation, receivership, moratorium,
reorganization or other similar laws affecting the enforcement of the rights of creditors and (ii)
general principles of equity, whether enforcement is sought in a proceeding in equity or at law.

          (k) All parties to the Mortgage Note and the Mortgage had legal capacity to enter into the
Mortgage Loan and to execute and deliver the Mortgage Note and the Mortgage, and the Mortgage Note
and the Mortgage have been duly and properly executed by such parties.

          (l) The proceeds of the Mortgage Loan have been fully disbursed to or for the account of the
Mortgagor, and there is no obligation for the Mortgagee to advance additional funds thereunder.

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          (m) If required by the Underwriting Guidelines, the Mortgage Loan is covered by an ALTA
lender’s title insurance policy or other form of title insurance policy acceptable to the Agency,
issued by a title insurer acceptable to the Agency and qualified to do business in the jurisdiction
where the Mortgaged Property is located, insuring (subject to the exceptions contained in paragraph
(h) (i) (ii) and (iii) above for First Lien Mortgage Loans and in paragraph (i)(i), (ii), (iii)
and (iv) above for Second Lien Mortgage Loans) the originator and its successors and assigns as to
the first or second mortgage lien priority, as applicable, in the original principal amount of the
Mortgage Loan. Seller is the insured under such lender’s title insurance policy, and such lender’s
title insurance policy is in full force and effect and will be in full force and effect upon the
related Closing Date. No claims have been made under such lender’s title insurance policy, and
Seller has not done, by act or omission, anything which would impair the coverage of such lender’s
title insurance policy.

          (n) There is no default or event of acceleration existing under the Mortgage or the Mortgage
Note, and Seller has not waived any default or event of acceleration. With respect to each Second
Lien Mortgage Loan, as of the related Closing Date, (i) the First Lien Mortgage Loan is in full
force and effect, (ii) Seller has not received any notice of default under the First Lien Mortgage
Loan or its related First Lien Mortgage which has not been cured, and (iii) Seller has not waived
any default or event of acceleration with respect thereto.

          (o) The Mortgage Loan was either (A) originated by (i) a savings and loan association, savings
bank, commercial bank, credit union, insurance company, or similar banking institution which is
supervised and examined by a federal or state authority, or (ii) a Mortgagee approved by the
Secretary of Housing and Urban Development pursuant to sections 203 and 211 of the National Housing
Act; or (B) originated and underwritten by an entity employing underwriting standards consistent
with the underwriting standards of an institution described in (A)(i) or (A)(ii) above.

          (p) Unless otherwise disclosed on the Mortgage Loan Schedule, the Mortgage Loan has an
original term to maturity of not more than 30 years, with interest payable in arrears on the first
day of each month. The Mortgage Note evidencing a Fixed Rate Mortgage Loan requires a monthly
payment which is sufficient to fully amortize the unpaid principal balance over the remaining term
and to pay interest at the related Mortgage Interest Rate. The Mortgage Note evidencing an
Adjustable Rate Mortgage Loan requires a Monthly Payment that is sufficient (after the IO
Conversion Date with respect to an IO Mortgage Loan) (i) during the period prior to the first
adjustment to the Mortgage Interest Rate, to amortize the original principal balance fully over the
remaining term thereof and to pay interest at the related Mortgage Interest Rate, and (ii) during
the period following each Adjustment Date, to amortize the outstanding principal balance fully as
of the first day of such period over the then remaining term of such Mortgage Note and to pay
interest at the related Mortgage Interest Rate. In any case, no Mortgage Loan contains terms or
provisions which would result in negative amortization. Payments of principal and/or interest on
the Mortgage Loan commenced no more than sixty (60) days after the funds were disbursed in
connection with the Mortgage Loan.

          (q) There is no proceeding pending or, to Seller’s knowledge, threatened for the total or
partial condemnation of the Mortgaged Property, and such property is in good repair and is
undamaged by waste, fire, earthquake or earth movement, windstorm, flood, tornado or

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other casualty, so as to materially affect adversely the value of the Mortgaged Property as
security for the Mortgage Loan or the use for which the premises were intended.

          (r) The Mortgage and related Mortgage Note contain customary and enforceable provisions such
as to render the rights and remedies of the holder thereof adequate for the realization against the
Mortgaged Property of the benefits of the security provided thereby, including (i) in the case of a
Mortgage designated as a deed of trust, by trustee’s sale, or (ii) otherwise by judicial
foreclosure, except as enforceability may be limited by bankruptcy, insolvency, liquidation,
receivership, moratorium, reorganization, or other similar laws affecting the enforcement of the
rights of creditors and by general principles of equity, whether enforcement is sought in a
proceeding in equity or at law. Following the date of origination of the Mortgage Loan, the
Mortgaged Property has not been subject to any bankruptcy proceeding or foreclosure proceeding and
the Mortgagor has not filed for protection under applicable bankruptcy laws. Interest on each
Mortgage Loan is calculated on the basis of a 360-day year consisting of twelve 30-day months;

          (s) The Mortgage Note and Mortgage are on forms acceptable to the Agency.

          (t) The Mortgage Note is not and has not been secured by any collateral except the lien of the
corresponding Mortgage on the Mortgaged Property.

          (u) The Mortgage File contains an appraisal of the related Mortgaged Property signed prior to
the final approval of the Mortgage Loan application by a Qualified Appraiser and the appraisal and
appraiser both satisfy the requirements of the Agency and Title XI of FIRREA and the regulations
promulgated thereunder, if applicable, all as in effect on the date the Mortgage Loan was
originated. The appraisal is in a form acceptable to the Agency;

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

          (w) The Mortgage Loan is not a graduated payment mortgage loan or buydown loan, and the
Mortgage Loan does not have a shared appreciation or other contingent interest feature.

          (x) All material disclosures required by applicable law with respect to the making of mortgage
loans of the same type as the Mortgage Loan have been made, including rescission materials required
by applicable law if the Mortgage Loan is a Refinanced Mortgage Loan.

          (y) Each Conventional First Lien Mortgage Loan that had a LTV at origination in excess of 80%
will be subject to a Primary Mortgage Insurance Policy, issued by a Qualified Insurer, in at least
such amount as is required by the Agency. All provisions of such Primary Mortgage Insurance Policy
have been and are being complied with, such policy is in full force and effect, and all premiums
due thereunder have been paid. Any First Lien Mortgage Loan subject to any such Primary Mortgage
Insurance Policy obligates the Mortgagor thereunder

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to maintain such insurance and to pay all premiums and charges in connection therewith unless
terminable in accordance with the Agency Guidelines or applicable law.

          (z) The Assignment of Mortgage is in recordable form and is acceptable for recording under the
laws of the jurisdiction in which the Mortgaged Property is located.

          (aa) All payments required to be made prior to the related Cut-off Date for the Mortgage Loan
under the terms of the Mortgage Note have been made.

          (bb) All escrow deposits and Escrow Payments, if any, are in the possession of, or under the
control of, Seller and have been handled in accordance with the Real Estate Settlement Procedures
Act (“RESPA”). If such Mortgage Loan provides that the interest rate on the principal balance of
the Mortgage Note may be adjusted, all of the terms of the Mortgage Note pertaining to interest
rate adjustments, payment adjustments and adjustments of the outstanding principal balance are
enforceable (except as enforceability may be limited by bankruptcy, insolvency, liquidation,
receivership, moratorium, reorganization, or other similar laws affecting the enforcement of the
rights of creditors and by general principles of equity, whether enforcement is sought in a
proceeding in equity or at law), and all such adjustments have been properly made, including any
required notices, and such adjustments do not and will not affect the priority of the Mortgage
lien. No payment with respect to the Mortgage Loan has been delinquent during the preceding
twelve-month period;

          (cc) Immediately prior to the payment of the Purchase Price, Seller was the sole owner and
holder of the Mortgage Loan. The Mortgage Loan was not assigned or pledged by Seller and Seller
had good and marketable title thereto, and Seller had full right to transfer and sell the Mortgage
Loan to Purchaser free and clear of any encumbrance, participation interest, lien, equity, pledge,
claim or security interest and had full right and authority, subject to no interest or
participation in, or agreement with, any other party to sell or otherwise transfer the Mortgage
Loan.

          (dd) The Mortgage Loan compiles with all the terms conditions and requirements of the
Underwriting Guidelines in effect at the time of origination with exceptions thereto exercised in a
reasonable manner.

          (ee) With respect to Mortgage Loans that are secured by a leasehold estate, the lease is
valid, in full force and effect, and conforms to the Agency Guidelines for leasehold estates.

          (ff) No fraud, nor any material misrepresentation, error, omission, or negligence, has taken
place on the part of Seller or the Mortgagor any other Person involved in the origination of the
Mortgage Loan.

          (gg) The Mortgaged Property is located in the state identified in the Mortgage Loan Schedule
and consists of a parcel of real property with a detached single family residence or a
two-to-four-family dwelling erected thereon, or an individual condominium unit, or an individual
unit in a planned unit development; provided, however, that any condominium project or planned unit
development conforms with the Underwriting Guidelines regarding such dwellings, and no residence or
dwelling is a mobile home or a manufactured housing unit that is not permanently attached to its
foundation. As of the date of origination, no portion of the

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Mortgaged Property was used for commercial purposes, and, since the date of origination no portion
of the Mortgaged Property has been used for commercial purposes;

          (hh) Seller used no adverse selection procedures in selecting the Mortgage Loan from among the
residential mortgage loans owned by it which were available for inclusion in the Mortgage Loans.

          (ii) Seller has delivered to Purchaser or Purchaser’s designee the Mortgage Loan Documents and
the Mortgage File for each Mortgage Loan as required by this Agreement and/or the Commitment
Letter.

          (jj) All improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries and building restriction
lines of the Mortgaged Property (and wholly within the project with respect to a condominium unit)
and no improvements on adjoining properties encroach upon the Mortgaged Property except those which
are insured against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision laws and ordinances.

          (kk) All parties which have had any interest in the Mortgage, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held and disposed of such
interest, were) (A) in compliance with any and all applicable licensing requirements of the laws of
the state wherein the Mortgaged Property is located, and (B) (1) organized under the laws of such
state, or (2) qualified to do business in such state, or (3) federal savings and loan associations
or national banks or a Federal Home Loan Bank or savings bank having principal offices in such
state, or (4) not doing business in such state.

          (ll) As of the related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of the Mortgaged Property and, with respect to the use and
occupancy of the same, including but not limited to certificates of occupancy and fire underwriting
certificates, have been made or obtained from the appropriate authorities.

          (mm) If the Mortgaged Property is a condominium unit or a planned unit development (other than
a de minimis planned unit development), or stock in a cooperative housing corporation, such
condominium, cooperative or planned unit development project meets the eligibility requirements of
the Agency.

          (nn) There is no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue; to Seller’s knowledge,
there is no violation of any environmental law, rule or regulation with respect to the Mortgaged
Property; and nothing further remains to be done to satisfy in full all requirements of each such
law, rule or regulation constituting a prerequisite to use and enjoyment of said property.

          (oo) The Mortgagor has not notified Seller requesting relief under the Servicemembers’ Civil
Relief Act, formerly known as the Soldiers’ and Sailors’ Civil Relief Act

23

 

of 1940, and Seller has no knowledge of any relief requested or allowed to the Mortgagor under the
Servicemembers’ Civil Relief Act.

          (pp). There are no mechanics’ or similar liens or claims filed for work, labor or material
(and no rights are outstanding that under law could give rise to such a lien) affecting the related
Mortgage Property which are or may be liens prior to, or equal or coordinate with, the lien of the
related Mortgage.

          (qq) As of the related Closing Date, the Mortgage Loan was not in construction or
rehabilitation status or has facilitated the trade-in or exchange of a Mortgaged Property.

          (rr) No action has been taken or failed to be taken by Seller on or prior to the Closing Date
which has resulted or will result in an exclusion from, denial of, or defense to coverage under any
insurance policy related to the Mortgage Loan (including, without limitation, any exclusions,
denials or defenses which would limit or reduce the availability of the timely payment of the full
amount of the loss otherwise due thereunder to the insured) whether arising out of actions,
representations, errors, omissions, negligence, or fraud of Seller, or for any other reason under
such coverage.

          (ss) With respect to any broker fees collected and paid on the Mortgage Loan, all broker
fees have been properly assessed to the Mortgagor and no claims will arise as to broker fees that
are double charged and for which the Mortgagor would be entitled to reimbursement.

          (tt) To Seller’s knowledge, there does not exist on the related Mortgage Property 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; provided however,
that commonly used household items shall not constitute “hazardous substances” for purposes of this
subsection.

          (uu) The Mortgage Loan did not have a Loan-to-Value Ratio at the time of origination of more
than 95%.

          (vv) None of the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies.

          (xx) Unless set forth on the Mortgage Loan Schedule, the Mortgage Loan is not a balloon loan.

          (yy) With respect to the Mortgage Loan, Seller has fully and accurately furnished complete
information on the related borrower credit files to Equifax, Experian and Trans Union Credit
Information Company, in accordance with the Fair Credit Reporting Act and its implementing
regulations.

     Section 6.02. Representations of Seller.

     Seller hereby represents and warrants to Purchaser that as to itself, as of the related
Closing Date:

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          (a) It is a Delaware corporation duly organized, validly existing, and in good standing under
the laws of the state of its incorporation and has all licenses necessary to carry on its business
as now being conducted and is qualified and in good standing in the states where the Mortgaged
Property is located. It has corporate power and authority to execute and deliver this Agreement
and to perform in accordance herewith; the execution, delivery and performance of this Agreement
(including all instruments of transfer to be delivered pursuant to this Agreement) by it and the
consummation of the transactions contemplated hereby have been duly and validly authorized. This
Agreement, assuming due authorization, execution and delivery by Purchaser, evidences the valid,
binding and enforceable obligation of it, subject to applicable law except as enforceability may be
limited by (i) bankruptcy, insolvency, liquidation, receivership, moratorium, reorganization or
other similar laws affecting the enforcement of the rights of creditors and (ii) general principles
of equity, whether enforcement is sought in a proceeding in equity or at law. All requisite
corporate action has been taken by it to make this Agreement valid and binding upon it in
accordance with its terms.

          (b) No consent, approval, authorization or order is required for the transactions contemplated
by this Agreement from any court, governmental agency or body, or federal or state regulatory
authority having jurisdiction over it; or, if required, such consent, approval, authorization or
order has been or will, prior to the related Closing Date, be obtained.

          (c) The consummation of the transactions contemplated by this Agreement are in Seller’s
ordinary course of business and will not result in the breach of any term or provision of its
charter or by-laws or result in the breach of any term or provision of, or conflict with or
constitute a default under or result in the acceleration of any obligation under, any agreement,
indenture or loan or credit agreement or other instrument to which it or its property is subject,
or result in the violation of any law, rule, regulation, order, judgment or decree to which it or
its property is subject.

          (d) The transfer, assignment and conveyance of the Mortgage Notes and the Mortgages by it
pursuant to this Agreement are not subject to the bulk transfer or any similar statutory provisions
in effect in any applicable jurisdiction.

          (e) There is no action, suit, proceeding or to its knowledge investigation pending or, to its
knowledge, threatened against it, which, either individually or in the aggregate, would likely
result in any material adverse change in the business, operations, financial condition, properties
or assets of it, or in any material impairment of the right or ability of it to carry on its
business substantially as now conducted or which would draw into question the validity of this
Agreement or the Mortgage Loans or of any action taken or to be taken in connection with the
obligations of it contemplated herein, or which would likely impair materially the ability of it to
perform under the terms of this Agreement.

          (f) Seller does not believe, nor does it have any reason or cause to believe, that it cannot
perform each and every covenant contained in this Agreement.

          (h) Seller will treat the transfer of the Mortgage Loans to Purchaser as a sale for reporting
and accounting purposes and, to the extent appropriate, for federal income tax

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purposes. Seller shall maintain a complete set of books and records for each Mortgage Loan which
shall be clearly marked to reflect the ownership of such Mortgage Loan by Purchaser.

          (i) Seller is an approved seller/servicer of residential mortgage loans for the Agency and
HUD, with such facilities, procedures and personnel necessary for the sound servicing of such
mortgage loans. Seller is duly qualified, licensed, registered and otherwise authorized under all
applicable federal, state and local laws and regulations and is in good standing to sell mortgage
loans to and service mortgage loans for the Agency and no event has occurred which would make
Seller unable to comply with eligibility requirements or which would require notification to either
of the Agency.

          (j) The consideration received by Seller upon the sale of the Mortgage Loans constitutes fair
consideration and reasonably equivalent value for such Mortgage Loans.

          (k) Seller has delivered to Purchaser financial statements as to its last two complete fiscal
years. All such financial statements fairly present the pertinent results of operations and
changes in financial position for each of such periods and the financial position at the end of
each such period of Seller and its subsidiaries and have been prepared in accordance with GAAP
consistently applied throughout the periods involved, except as set forth in the notes thereto.
There has been no change in the business, operations, financial condition, properties or assets of
Seller since the date of Seller’s financial statements that would have a material adverse effect on
its ability to perform its obligations under this Agreement or the related Commitment Letter.

          (l) Seller has not dealt with any third-party broker, investment banker, agent or other person
that may be entitled to any commission or compensation in connection with the sale of the Mortgage
Loans.

     Section 6.03. Remedies for Breach of Representations and Warranties.

     It is understood and agreed that the representations and warranties set forth in Sections 6.01
and 6.02 shall survive the sale of the Mortgage Loans to Purchaser and shall inure to the benefit
of Purchaser, notwithstanding any restrictive or qualified endorsement on any Mortgage Note or
Assignment of Mortgage or the examination or lack of examination of any Mortgage File. Upon
discovery by either Seller or Purchaser of a breach of any of the foregoing representations and
warranties which materially and adversely affects the value of the Mortgage Loans or the interest
of Purchaser therein (or which materially and adversely affects the interest of Purchaser in the
related Mortgage Loan in the case of a representation and warranty relating to a particular
Mortgage Loan), the party discovering such breach shall give prompt written notice to the other
party.

     Within sixty (60) days of the earlier of either discovery by or notice to Seller of any breach
of a representation or warranty which materially and adversely affects the value of a Mortgage Loan
or the Mortgage Loans or the interest of Purchaser therein, Seller shall at its discretion either
cure such breach in all material respects or repurchase such Mortgage Loan or Mortgage Loans at the
Repurchase Price. However, Seller may, with Purchaser’s prior consent and assuming that Seller has
a Qualified Substitute Mortgage Loan, rather than repurchase the Mortgage Loan as provided above,
remove such Mortgage Loan and substitute in its place a

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Qualified Substitute Mortgage Loan or Loans; provided, however, that any such substitution shall be
effected not later than one hundred eighty (180) days after the related Closing Date. Any
repurchase of a Mortgage Loan pursuant to the foregoing provisions of this Section 6.03 shall be
accomplished by Seller depositing the amount of the Repurchase Price in the Custodial Account for
distribution to Purchaser on the next Remittance Date.

     At the time of repurchase of any Mortgage Loan (or removal of any Deleted Mortgage Loan),
Purchaser and Seller shall arrange for the assignment of the repurchased Mortgage Loan (or Deleted
Mortgage Loan) to Seller or its designee and the delivery to Seller of any documents held by
Purchaser relating to the repurchased Mortgage Loan in the manner required by this Agreement with
respect to the purchase and sale of such Mortgage Loan on the related Closing Date. Upon such
repurchase, the Mortgage Loan Schedule shall be amended to reflect the withdrawal of the Deleted
Mortgage Loan from this Agreement.

     As to any Deleted Mortgage Loan for which Seller substitutes one or more Qualified Substitute
Mortgage Loans, Seller shall effect such substitution by delivering to Purchaser, or its designee,
for each Qualified Substitute Mortgage Loan the Mortgage Loan Documents. Seller shall remit to the
Custodial Account the Monthly Payment less the Servicing Fee due on each Qualified Substitute
Mortgage Loan in the month following the date of such substitution. Monthly Payments due with
respect to Qualified Substitute Mortgage Loans in the month of substitution will be retained by
Seller. For the month of substitution, distributions to Purchaser will include the Monthly Payment
due on such Deleted Mortgage Loan in the month of substitution, and Seller shall thereafter be
entitled to retain all amounts subsequently received by Seller in respect of such Deleted Mortgage
Loan. Seller shall give written notice to Purchaser that such substitution has taken place and
shall amend the Mortgage Loan Schedule to reflect the removal of such Deleted Mortgage Loan from
the terms of this Agreement and the substitution of the Qualified Substitute Mortgage Loan. Upon
such substitution, each Qualified Substitute Mortgage Loan shall be subject to the terms of this
Agreement in all respects, and Seller shall be deemed to have made with respect to such Qualified
Substitute Mortgage Loan, as of the date of substitution, the covenants, representations and
warranties set forth in Sections 6.01 and 6.02, and Seller shall have no further liability or
obligation to Purchaser for the Deleted Mortgage Loan.

     For any month in which Seller substitutes one or more Qualified Substitute Mortgage Loans for
one or more Deleted Mortgage Loans, Seller will determine the amount (if any) by which the
aggregate principal balance of all such Qualified Substitute Mortgage Loans as of the date of
substitution is less than the aggregate Stated Principal Balance of all such Deleted Mortgage Loans
(after application of scheduled principal payments due in the month of substitution). The amount
of such shortfall shall be remitted for distribution by Seller to Purchaser in the month of
substitution pursuant to Section 11.04. Accordingly, on the date of such substitution, Seller
shall remit from its own funds for deposit into the Custodial Account an amount equal to the amount
of such shortfall plus one month’s interest thereon at the Mortgage Loan Remittance Rate.

     If within sixty (60) days of the Closing Date, Seller receives written notice from Purchaser
that it has breached a representation of warranty set forth in Sections 6.01 or 6.02 which
materially and adversely affects the value of the Mortgage Loan or the interest of Purchaser
therein, and Seller within sixty (60) days after receipt of such notices does not cure

27

 

such breach or substitute a Qualified Substitute Mortgage Loan satisfactory to Purchaser, then
Seller shall repurchase the Mortgage Loan pursuant to the provisions of this Section at a price
equal to the outstanding principal balance at the time of repurchase, times the percentage of par
set forth in the Commitment Letter related to that Mortgage Loan, plus any accrued and unpaid
interest.

     Section 6.04. Indemnification.

     Seller agrees to indemnify and hold harmless Purchaser against any and all actual losses,
claims, damages, actions, cost, expenses, penalties, fines, forfeitures or liabilities, including
reasonable attorneys fees and related costs, which Purchaser sustains that are caused by any
material breach by Seller of any representation or warranty contained in Sections 6.01 and 6.02
hereof, excluding, however, any and all consequential and punitive damages.

     If Purchaser seeks indemnification under this Section 6.04, it must promptly give Seller
notice of any legal action or potential claim. However, delay or failure by Purchaser to provide
such notice shall not release Seller from any indemnity obligations, except and only to the extent
that Seller shows that such delay or failure materially prejudiced the defense of such action or
increased the amount of such claim. Seller shall be responsible to conduct such defense through
counsel reasonably satisfactory to Purchaser; provided, however, that Seller is permitted to
control fully the defense of any such claim and to settle any such claim subject to Purchaser’s
approval, which approval shall not be unreasonably withheld; provided further that Purchaser shall
have the right to retain counsel to represent it at its expense in connection with any such claim.
If Seller fails to assume the defense of an action within twenty (20) days after receiving notice,
then Seller shall be bound by any determination made in the action or by any compromise or
settlement Purchaser may effect. Without the consent of the other party, neither Purchaser nor
Seller shall agree to any settlement if the matter involves any possible criminal action or
proceeding, or contains a stipulation to, or admission or acknowledgment of, any wrongdoing (in
tort or otherwise) on the part of the other party, and the settlement of any such matter without
the prior written consent of the other party shall be void and of no effect with respect to that
other party. Purchaser agrees to use reasonable efforts to mitigate any claims tendered to Seller.
Purchaser shall assign to Seller all of its claims for recovery against third parties for any
indemnification provided by Seller, whether such claims arise pursuant to insurance coverage,
contribution, subrogation or otherwise.

     No action may be brought against Seller relating to or arising out of the breach of any
representations and warranties made in Sections 6.01 or 6.02 with respect to any Mortgage Loan
unless and until (i) discovery of such breach by Purchaser or notice thereof by Seller to
Purchaser, (ii) failure by Seller to cure such breach, repurchase such Mortgage Loan as specified
above, or substitute a Qualified Substitute Mortgage Loan for such Mortgage Loan as specified above
and (iii) demand upon Seller by Purchaser for compliance with the terms of this Agreement.

     It is understood and agreed that the obligations of Seller set forth in Section 6.03 to cure,
repurchase or substitute for a defective Mortgage Loan, or in Section 6.04 to indemnify Purchaser,
constitute the sole remedies of Purchaser respecting a breach of the representations and warranties
set forth in Sections 6.01 and 6.02.

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     Section 6.05 Early Payment Default.

     If a Monthly Payment becomes one (1) or more scheduled Monthly Payments delinquent at any time
on or prior to the first day of the second calendar month following the related Closing Date (or
such other date set forth in the related Commitment Letter), then Seller, at Purchaser’s option,
shall promptly repurchase the related Mortgage Loan from Purchaser at the Purchase Price.

     Section 6.06 Purchase Price Protection

     With respect to any Mortgage Loan that prepays in full on or prior to the last day of the
first full month following the related Closing Date (or such other date set forth in the related
Term Sheet, Seller shall reimburse Purchaser an amount equal to the product of (a) the amount by
which Purchase Price Percentage paid by Purchaser to Seller for such Mortgage Loan exceeds 100% and
(b) the outstanding principal balance of the Mortgage Loan as of the Cut-off Date. Such payment
shall be made within thirty (30) days of such payoff.

     SECTION 7. Representations, Warranties and Covenants of Purchaser; Remedies for
Breach.

     Section 7.01. Representations and Warranties of Purchaser.

     Purchaser hereby makes the following representations and warranties, which have been deemed to
have been made as of each related Closing Date or such other date thereafter as specified herein:

          (a) Purchaser is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization.

          (b) There is no litigation pending or, to its knowledge, threatened, which, if determined
adversely to it, would have a material adverse effect on its financial condition, or which would
adversely affect the execution, delivery and performance of this Agreement.

          (c) Purchaser has full power and authority (corporate or otherwise) to enter into and perform
its obligations under this Agreement.

          (d) With regard to each Mortgagor, Purchaser shall at all times comply with all laws and
regulations regarding use, disclosure and safeguarding of any and all customer information,
including without limitation the Gramm Leach Bliley Act, the Interagency Guidelines Establishing
Standards for Safeguarding Customer Information (12 CFR Part 30, Appendix B), the Fair Credit
Reporting Act and Regulation P.

          (e) This Agreement has been duly authorized, executed and delivered by Purchaser, and
constitutes the valid, legal and binding agreement of Purchaser, enforceable against Purchaser in
accordance with its respective terms, except as enforceability may be limited by (i) bankruptcy,
insolvency, liquidation, receivership, moratorium, reorganization, or other similar laws affecting
the enforcement of the rights of creditors and (ii) general principles of equity, whether
enforcement is sought in a proceeding in equity or at law.

29

 

          (f) Neither the execution and delivery of this Agreement, the acquisition of the Mortgage
Loans by Purchaser, the consummation of the transactions contemplated hereby, nor the fulfillment
of or compliance with the terms and conditions of this Agreement, will conflict with or result in a
breach of any of the terms, conditions or provisions of Purchaser’s charter or by-laws or any legal
restriction or any agreement or instrument to which Purchaser is now a party or by which it is
bound, or constitute default or result in acceleration under any of the foregoing, or result in the
violation of any rule, regulation, order, judgment or decree to which Purchaser or its property is
subject.

     Section 7.02. Remedies.

     The representations, warranties and covenants set forth in Section 7.01 shall survive the
purchase and sale of the Mortgage Loans and shall inure to the benefit of Seller. Purchaser agrees
to indemnify and hold harmless Seller against any and all actual losses, damages, actions or
liabilities, including reasonable attorneys fees, which Seller sustains that are caused by any
breach by Purchaser of any representations or warranties, excluding, however, any and all
consequential and punitive damages.

     SECTION 8. Closing. The closing for the purchase and sale of each Mortgage Loan
Package shall take place on the related Closing Date. The closing shall be by telephone, confirmed
by letter or wire as the parties shall agree. The closing for each Mortgage Loan Package shall be
subject to each of the following conditions:

          (a) Purchaser shall have received all Closing Documents as specified in Section 9, duly
executed by all signatories as required pursuant to the terms hereof;

          (b) all of the representations and warranties of Seller under this Agreement shall be true and
correct as of the related Closing Date (or, with respect to Subsection 6.01, such other date
specified therein) in all material respects no default shall have occurred hereunder which, with
notice or the passage of time or both, would constitute an Event of Default hereunder; or such
compliance has been waived by Purchaser; and

          (c) all other terms and conditions of this Agreement and the related Commitment Letter shall
have been complied with in all material respects.

          Upon satisfaction of the foregoing conditions, Purchaser shall pay to Seller on the Closing
Date the Purchase Price for the related Mortgage Loan Package, plus accrued interest pursuant to
Section 4 of this Agreement.

     SECTION 9. Closing Documents.

     (a) On or before the first Closing Date, Seller shall deliver to Purchaser:

	 	(i)	 	this Agreement, executed by Seller, in four counterparts;
	 
	 	(ii)	 	if requested by Purchaser, the certification of the Custodial
Account as described in Section 11.04;

30

 

	 	(iii)	 	if requested by Purchaser, the certification of the Escrow
Account as described in Section 11.06;
	 
	 	(iv)	 	a Seller’s Officer’s Certificate, in the form of Exhibit 3
hereto, including all attachments thereto; and
	 
	 	(v)	 	an opinion of counsel in the form of Exhibit 4 hereto.

     (b) On or before each Closing Date, Seller shall submit to Purchaser fully executed
originals of the following documents:

	 	(i)	 	the related Commitment Letter;
	 
	 	(ii)	 	the related Mortgage Loan Schedule; and
	 
	 	(iii)	 	a certificate or other evidence of merger or change of name,
signed or stamped by the applicable regulatory authority, if any of the
Mortgage Loans were acquired by Seller by merger or acquired or originated by
Seller while conducting business under a name other than its present name, if
applicable.

     SECTION 10. Costs. Purchaser shall pay the fees and expenses of its due diligence,
the legal fees and expenses of its attorneys, the costs and expenses incurred in connection with
the recording of Assignments of Mortgage from Seller, and the fees and expenses of its custodian,
if any. Seller shall pay the costs and expenses incurred in connection with the initial transfer
and delivery of the Mortgage Loan Documents hereunder and the legal fees and expenses of its
attorneys. Each party shall pay any commissions due its salesmen.

     SECTION 11. Administration and Servicing of the Mortgage Loans.

     Section 11.01. Seller to Act as Servicer.

     Seller, as an independent contract servicer, shall service and administer the Mortgage Loans
for the benefit of Purchaser in accordance with this Agreement, Customary Servicing Procedures and
the terms of the Mortgage Notes and Mortgages. Subject to such standards, Seller shall have full
power and authority, acting alone or through sub-servicers or agents, to do or cause to be done any
and all things in connection with such servicing and administration that Seller may deem necessary
or desirable to perform consistent with the terms of this Agreement. Seller may perform its
servicing responsibilities through agents, subcontractors or independent contractors, but shall not
thereby be released from any of its responsibilities hereunder.

     Consistent with the terms of this Agreement, Seller may waive, modify or vary any term of any
Mortgage Loan or consent to the postponement of compliance with any such term or in any manner
grant indulgence to any Mortgagor; provided, however, Seller shall not, unless it has first
obtained the consent of Purchaser, permit any modification with respect to any Mortgage Loan that
would change the Mortgage Interest Rate, defer or forgive the payment of any principal or interest,
change the outstanding principal amount (except for actual payments of

31

 

principal), make any future advances, extend the final maturity date, as the case may be, with
respect to such Mortgage Loan or accept substitute or additional collateral or release any
collateral for a Mortgage Loan. Without limiting the generality of the foregoing, Seller in its
own name or acting through sub-servicers or agents is hereby authorized and empowered by Purchaser
when Seller believes it appropriate and reasonable in its judgment, to execute and deliver, on
behalf of itself and Purchaser, all instruments of satisfaction or cancellation, or of partial or
full release, discharge and all other comparable instruments, with respect to the Mortgage Loans
and the Mortgaged Properties and to institute foreclosure proceedings or obtain a deed-in-lieu of
foreclosure so as to convert the ownership of such properties, and to hold or cause to be held
title to such properties, on behalf of Purchaser pursuant to the provisions of Section 11.13.
Seller shall make all required Servicing Advances, shall service and administer the Mortgage Loans,
and shall provide to the Mortgagors any reports required to be provided to them hereunder.
Purchaser shall furnish to Seller any powers of attorney and other documents reasonably necessary
or appropriate to enable Seller to carry out its servicing and administrative duties under this
Agreement.

     Section 11.02. Liquidation of Mortgage Loans.

     If any payment due under any First Lien Mortgage Loan is not paid when the same becomes due
and payable, or if the Mortgagor fails to perform any other covenant or obligation under the First
Lien Mortgage Loan and such failure continues beyond any applicable grace period, Seller shall take
such action as it shall deem to be in the interest of Purchaser. If any payment due under any First
Lien Mortgage Loan remains delinquent for such period as provided in the Servicing Guidelines,
Seller shall commence foreclosure proceedings in accordance with those Servicing Guidelines, unless
otherwise directed by Purchaser. Seller shall not sell any such First Lien Mortgage Loan unless
Seller has first obtained the consent of Purchaser. Purchaser may instruct Seller to commence
foreclosure proceedings on any First Lien Mortgage Loan for which any payment remains delinquent
for a period of 120 days or more. If Seller has commenced foreclosure proceedings, it shall
promptly notify Purchaser and thereafter periodically advise Purchaser of the status of the
foreclosure proceedings and follow Purchaser’s instructions in connection therewith. Whether in
connection with the foreclosure of a Mortgage Loan or otherwise, Seller shall from its own funds
make all necessary and proper Servicing Advances, provided, however, that Seller is not required to
make a Servicing Advance unless Seller determines in the exercise of its good faith reasonable
judgment that such Servicing Advance would ultimately be recoverable from Liquidation Proceeds,
Insurance Proceeds, REO Disposition Proceeds or Condemnation Proceeds (with respect to each of
which Seller shall have the priority described in Section 4.05 for purposes of withdrawals from the
Custodial Account). If the portion of any Liquidation Proceeds or REO Disposition Proceeds
allocable as a recovery of interest on any First Lien Mortgage Loan is less than the full amount of
accrued and unpaid interest on such First Lien Mortgage Loan as of the date such proceeds are
received, then the Servicing Fees and Servicing Advances shall be paid first to Seller, and any
amounts remaining thereafter shall be distributed to Purchaser.

     Within fifteen (15) days of receiving a monthly remittance report from Seller indicating (i)
that a payment due under any Second Lien Mortgage Loan is delinquent and remains delinquent for a
period of thirty (30) days beyond the expiration of any grace or cure period therefor; or (ii) that
any other default under a Second Lien Mortgage Loan continues for a period of sixty (60) days
beyond the expiration of any grace or cure period therefor, Purchaser shall

32

 

notify Seller in writing to commence foreclosure proceedings, including accepting a deed in
lieu of foreclosure. In no event, shall Seller ever be required to fund any amounts necessary to
satisfy any liens superior to the lien of the Mortgage being foreclosed or to clear title to the
related Mortgaged Property. Prior to the time such funds are needed, Purchaser shall provide
Seller with all funds needed to pay off prior lien holders and to clear title. Upon request
therefor, Purchaser shall promptly reimburse Seller for all other funds of an incidental nature
that Seller expends or incurs in connection with such foreclosure, including Seller’s fees,
expenses and attorneys fees. Upon Purchaser’s acquisition of the Mortgaged Property through
foreclosure or deed in lieu of foreclosure, or upon failure of Seller to receive written direction
of Purchaser to commence foreclosure within fifteen (15) days after Purchaser receives its monthly
remittance report from Seller indicating a sixty (60) day default, Seller shall not thereafter have
any obligation or liability to Purchaser, or to any other Person, for or on account of such
Mortgage Loan or such Mortgaged Property, including the collection of any indebtedness due under
the Mortgage Loan. Purchaser, however, shall promptly reimburse Seller for all costs and expenses
incurred by Seller with respect to the Mortgage Property and the related Mortgage Loan, including
without limitation any unreimbursed Servicing Advances, unpaid Servicing Fees and reasonable
attorneys fees. Once responsibility for a Mortgaged Property is transferred to Purchaser pursuant
to the provisions of this section, Purchaser shall have no right to transfer it back to Seller.

     Section 11.03. Collection of Mortgage Loan Payments.

     Continuously from the date hereof until the principal and interest on all Mortgage Loans are
paid in full, Seller will proceed, in accordance with this Agreement, to collect all payments due
under each of the Mortgage Loans when the same shall become due and payable, in accordance with the
Servicing Guidelines. Further, Seller will in accordance with RESPA and all applicable state law
ascertain and estimate taxes, assessments, fire and hazard insurance premiums, premiums for Primary
Mortgage Insurance Policies, and all other charges that, as provided in any Mortgage, will become
due and payable in order that the installments payable by the Mortgagors will be sufficient to pay
such charges as and when they become due and payable.

     Section 11.04. Establishment of Custodial Account; Deposits in Custodial Account.

     Seller shall segregate and hold all funds collected and received pursuant to each Mortgage
Loan separate and apart from any of its own funds and general assets and shall establish and
maintain one or more Custodial Accounts (collectively, the “Custodial Account”), titled in the name
of ABN AMRO Mortgage Group, Inc., in trust for RWT Holdings, Inc. as Purchaser of Mortgage Loans.
Such Custodial Account shall be established as an Eligible Account with a commercial bank, a
savings bank or a savings and loan association (which may be a depository affiliate of Seller)
which meets the guidelines set forth by the Agency as an eligible depository institution for
custodial accounts. The creation of any Custodial Account shall be evidenced by a certification, a
copy of which certification shall be furnished to Purchaser upon request.

     Seller shall deposit in the Custodial Account on a daily basis, and retain therein, the
following payments and collections received or made by it subsequent to the related Cut-off Date
(other than in respect of principal and interest on the Mortgage Loans due on or before the related
Cut-off Date as provided in Section 11.17):

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          (a) all payments on account of principal, including Principal Prepayments, on the Mortgage
Loans;

          (b) all payments on account of interest on the Mortgage Loans adjusted to the Mortgage Loan
Remittance Rate;

          (c) all Liquidation Proceeds;

          (d) all proceeds received by Seller under any title insurance policy, hazard insurance policy,
Primary Mortgage Insurance Policy or other insurance policy, other than proceeds to be held in the
Escrow Account and applied to the restoration or repair of the Mortgaged Property or released to
the Mortgagor in accordance with Customary Servicing Procedures and the Mortgage Loan Documents;

          (e) all awards or settlements in respect of condemnation proceedings or eminent domain
affecting any Mortgaged Property which are not released to the Mortgagor in accordance with
Customary Servicing Procedures and the Mortgage Loan Documents;

          (f) any amount required to be deposited in the Custodial Account pursuant to Sections 11.15,
11.17 and 11.19;

          (g) any amount required to be deposited by Seller in connection with any REO Property pursuant
to Section 11.13;

          (h) any amounts payable in connection with the repurchase of any Mortgage Loan pursuant to
Section 6.03, and all amounts required to be deposited by Seller in connection with shortfalls in
principal amount of Qualified Substitute Mortgage Loans pursuant to Section 6.03; and

          (i) with respect to each Principal Prepayment in full, the Prepayment Interest Shortfall (to
be paid by Seller out of its funds, but not in excess of its aggregate Servicing Fee for the
related Due Period).

     The foregoing requirements for deposit in the Custodial Account shall be exclusive, it being
understood and agreed that, without limiting the generality of the foregoing, payments in the
nature of late payment charges, assumption fees, prepayment penalties or premium and other
ancillary fees need not be deposited by Seller in the Custodial Account, and may be retained by
Seller as additional compensation.

     Seller may invest the funds in the Custodial Account in Eligible Investments designated in the
name of Seller for the benefit of Purchaser, which shall mature not later than the Business Day
next preceding the Remittance Date next following the date of such investment (except that (A) any
investment in the institution with which the Custodial Account is maintained may mature on such
Remittance Date and (B) any other investment may mature on such Remittance Date if Seller shall
advance funds on such Remittance Date, pending receipt thereof, to the extent necessary to make
distributions to Purchaser) and shall not be sold or disposed of prior to maturity.
Notwithstanding anything to the contrary herein and above, all income and gain

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realized from any such investment shall be for the benefit of Seller and shall be subject to
withdrawal by Seller. The amount of any losses incurred in respect of any such investments shall
be deposited in the Custodial Account by Seller out of its own funds immediately as realized.

     Section 11.05. Withdrawals From the Custodial Account.

     Seller shall, from time to time, withdraw funds from the Custodial Account for the following
purposes:

          (a) to make payments to Purchaser in the amounts and in the manner provided for in Section
11.15;

          (b) to reimburse itself for P&I Advances, Seller’s right to reimburse itself pursuant to this
subclause (b) with respect to any Mortgage Loan being limited to related Liquidation Proceeds,
Condemnation Proceeds, Insurance Proceeds, REO Disposition Proceeds and such other amounts as may
be collected by Seller from the Mortgagor or otherwise relating to the Mortgage Loan, it being
understood that, in the case of any such reimbursement, Seller’s right thereto shall be prior to
the rights of Purchaser, except that, where Seller is required to repurchase a Mortgage Loan,
pursuant to Section 6.03, Seller’s right to such reimbursement shall be subsequent to the payment
to Purchaser of the Repurchase Price pursuant to Section 6.03 and all other amounts required to be
paid to Purchaser with respect to such Mortgage Loan;

          (c) to reimburse itself for any unpaid Servicing Fees and for unreimbursed Servicing Advances,
Seller’s right to reimburse itself pursuant to this subclause (c) with respect to any Mortgage Loan
being limited to related Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds, REO
Disposition Proceeds and such other amounts as may be collected by Seller from the Mortgagor or
otherwise relating to the Mortgage Loan, it being understood that, in the case of any such
reimbursement, Seller’s right thereto shall be prior to the rights of Purchaser unless Seller is
required to repurchase a Mortgage Loan pursuant to Section 6.03, in which case Seller’s right to
such reimbursement shall be subsequent to the payment to Purchaser of the Repurchase Price pursuant
to Section 6.03 and all other amounts required to be paid to Purchaser with respect to such
Mortgage Loan;

          (d) to reimburse itself for unreimbursed Servicing Advances and for unreimbursed P&I Advances,
in accordance with Section 11.17, to the extent that such amounts are nonrecoverable by Seller
pursuant to subclause (b) or (c) above, provided that the Mortgage Loan for which such advances
were made is not required to be repurchased by Seller pursuant to Section 6.03;

          (e) to withdraw amounts to make P&I Advances in accordance with Section 11.17;

          (f) to reimburse itself for expenses incurred by and reimbursable to it pursuant to this
Agreement;

          (g) to pay to itself any interest earned or any investment earnings on funds deposited in the
Custodial Account, net of any losses on such investments;

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          (h) to withdraw any amounts inadvertently deposited in the Custodial Account; and

          (i) to clear and terminate the Custodial Account upon the termination of this Agreement.

     Upon request, Seller will provide Purchaser with copies of reasonably acceptable invoices or
other documentation relating to Servicing Advances that have been reimbursed from the Custodial
Account.

     Section 11.06. Establishment of Escrow Account; Deposits in Escrow Account.

     Seller shall segregate and hold all funds collected and received pursuant to each Mortgage
Loan which constitute Escrow Payments separate and apart from any of its own funds and general
assets and shall establish and maintain one or more Escrow Accounts (collectively, the “Escrow
Account”), titled in the name of ABN AMRO Mortgage Group, Inc., in trust for RWT Holdings, Inc as
Purchaser of Mortgage Loans. The Escrow Account shall be established as an Eligible Account with a
financial institution (which may be a depository affiliate of Seller), which meets the guidelines
set forth by the Agency as an eligible institution for escrow accounts. The creation of any Escrow
Account shall be evidenced by a certification, a copy of which certification shall be furnished to
Purchaser upon request. The Escrow Account may be combined with other Escrow Accounts maintained by
Seller for various Mortgagors.

     Seller shall deposit in the Escrow Account on a daily basis, and retain therein: (a) all
Escrow Payments collected on account of the Mortgage Loans, for the purpose of effecting timely
payment of any such items as required under the terms of this Agreement and (b) all amounts
representing proceeds of any hazard insurance policy which are to be applied to the restoration or
repair of any Mortgaged Property. Seller shall make withdrawals therefrom only in accordance with
Section 11.07 hereof. As part of its servicing duties, Seller shall pay to the Mortgagors interest
on funds in the Escrow Account, to the extent required by law.

     Section 11.07. Withdrawals From Escrow Account.

     Withdrawals from the Escrow Account shall be made by Seller only (a) to effect timely payments
of ground rents, taxes, assessments, premiums for Primary Mortgage Insurance Policies, fire, or
hazard insurance premiums or other items constituting Escrow Payments for the related Mortgage, (b)
to reimburse Seller for any Servicing Advance made by Seller pursuant to Section 11.08 hereof with
respect to a related Mortgage Loan, (c) to refund to any Mortgagor any funds found to be in excess
of the amounts required under the terms of the related Mortgage Loan, (d) for transfer to the
Custodial Account upon default of a Mortgagor or in accordance with the terms of the related
Mortgage Loan and if permitted by applicable law, (e) for application to restore or repair of the
Mortgaged Property in accordance with the Mortgage Loan Documents, (f) to pay to the Mortgagor, to
the extent required by law, any interest paid on the funds deposited in the Escrow Account, (g) to
pay to itself any interest earned on funds deposited in the Escrow Account (and not required to be
paid to the Mortgagor), (h) to withdraw suspense payments that are deposited into the Escrow
Account, (i) to withdraw any amounts inadvertently deposited in the Escrow Account, (j) to withdraw
any Escrow Payments related to a Mortgage

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Loan repurchased by Seller pursuant to Subsection 6.03 or (k) to clear and terminate the Escrow
Account upon the termination of this Agreement.

     Section 11.08. Payment of Taxes, Insurance and Other Charges; Collections Thereunder.

     With respect to each Mortgage Loan for which an Escrow Account is maintained, Seller shall
maintain accurate records reflecting the status of taxes and other charges which are or may become
a lien upon the Mortgaged Property and the status of premiums for Primary Mortgage Insurance
Policies and fire and hazard insurance coverage and shall obtain, from time to time, for all
Mortgage Loans with an Escrow Account, all bills for the payment of such charges (including renewal
premiums) and shall effect payment thereof prior to the applicable penalty or termination date and
at a time appropriate for securing maximum discounts allowable, employing for such purpose deposits
of the Mortgagor in the Escrow Account which shall have been estimated and accumulated by Seller in
amounts sufficient for such purposes, as allowed under the terms of the Mortgage. To the extent
that a Mortgage does not provide for Escrow Payments, Seller shall determine that any such payments
are made by the Mortgagor. Seller assumes full responsibility for the timely payment of all such
bills and shall effect timely payments of all such bills irrespective of each Mortgagor’s faithful
performance in the payment of same or the making of the Escrow Payments and shall make Servicing
Advances to effect such payments, subject to its ability to recover such Servicing Advances
pursuant to Section 11.07(b).

     Section 11.09. Transfer of Accounts.

     Seller may transfer the Custodial Account or the Escrow Account to a different depository
institution. Such transfer shall be made only upon obtaining the prior written consent of
Purchaser; such consent shall not be unreasonably withheld.

     Section 11.10. Maintenance of Hazard Insurance.

     Seller shall cause to be maintained for each Mortgaged Property fire and hazard insurance with
extended coverage customary in the area where the Mortgaged Property is located by an insurer
acceptable to the Agency, in an amount acceptable to the Agency. If the Mortgaged Property is in
an area identified on a flood hazard map or flood insurance rate map issued by the Federal
Emergency Management Agency as a special flood hazard area (and such flood insurance has been made
available), Seller shall maintain for that Mortgaged Property a flood insurance policy meeting the
requirements of the current requirements of the National Flood Insurance Program and the coverage
amount requirements of the Agency. Seller shall also maintain on REO Property fire and hazard
insurance with extended coverage in an amount which is at least equal to the principal balance of
the related Mortgage Loan foreclosed, liability insurance and, to the extent required and available
under the National Flood Insurance Program, flood insurance in an amount of the lesser of the
principal balance of the related Mortgage Loan foreclosed or the maximum amount of flood insurance
available under the National Flood Insurance Program. Any amounts collected by Seller under any
such policies (other than amounts to be deposited in the Escrow Account and applied to the
restoration or repair of the property subject to the related Mortgage or property acquired in
liquidation of the Mortgage Loan, or to be released to the Mortgagor in accordance with Customary
Servicing Procedures and the Mortgage Loan Documents) shall be deposited in the Custodial Account,
subject to

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withdrawal pursuant to Section 11.05. It is understood and agreed that no earthquake or other
additional insurance need be required by Seller of any Mortgagor or maintained on REO Property
other than pursuant to such applicable laws and regulations as shall at any time be in force and as
shall require such additional insurance. All policies required hereunder shall be endorsed with
standard mortgagee clauses with loss payable to Seller, and shall provide for at least thirty (30)
days prior written notice of any cancellation, reduction in amount or material change in coverage
to Seller. Seller shall not interfere with the Mortgagor’s freedom of choice in selecting either
his insurance carrier or agent; provided, however, that Seller shall not accept any such insurance
policies from insurance companies unless such companies are Qualified Insurers.

     Section 11.11. Maintenance of Primary Mortgage Insurance Policy; Claims.

     With respect to each First Lien Mortgage Loan with a LTV in excess of 80%, Seller shall,
without any cost to Purchaser, maintain or cause the Mortgagor to maintain in full force and effect
a Primary Mortgage Insurance Policy insuring that portion of the First Lien Mortgage Loan in excess
of a percentage in conformance with the Agency requirements. Seller shall pay or shall cause the
Mortgagor to pay the premium thereon on a timely basis, at least until the LTV of such l First Lien
Mortgage Loan is reduced to 80%, or such amount as required by applicable law, or such other amount
as the Agency permits for cancellation of mortgage insurance. If such Primary Mortgage Insurance
Policy shall be terminated, other than as required by law, Seller shall obtain from another
Qualified Insurer a comparable replacement policy, with a total coverage equal to the remaining
coverage of such terminated Primary Mortgage Insurance Policy. If the insurer shall cease to be a
qualified insurer, Seller shall and obtain from another Qualified Insurer a replacement insurance
policy. Seller shall not take any action which would result in noncoverage under any applicable
Primary Mortgage Insurance Policy of any loss which, but for the actions of Seller would have been
covered thereunder. In connection with any assumption or substitution agreement entered into or to
be entered into pursuant to Section 11.18, Seller shall promptly notify the insurer under the
related Primary Mortgage Insurance Policy, if any, of such assumption or substitution of liability
in accordance with the terms of such Primary Mortgage Insurance Policy and shall take all actions
which may be required by such insurer as a condition to the continuation of coverage under such
Primary Mortgage Insurance Policy. If such Primary Mortgage Insurance Policy is terminated as a
result of such assumption or substitution of liability, Seller shall obtain a replacement Primary
Mortgage Insurance Policy as provided above.

     In connection with its activities as Seller, Seller agrees to prepare and present, on behalf
of itself and Purchaser, claims to the insurer under any Primary Mortgage Insurance Policy in a
timely fashion in accordance with the terms of such Primary Mortgage Insurance Policy and, in this
regard, to take such action as shall be necessary to permit recovery under any Primary Mortgage
Insurance Policy respecting a defaulted Conventional First Lien Mortgage Loan. Pursuant to Section
11.06, any amounts collected by Seller under any Primary Mortgage Insurance Policy shall be
deposited in the Escrow Account, subject to withdrawal pursuant to Section 11.07.

     Section 11.12. Maintenance of Fidelity Bond and Errors and Omissions Insurance.

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     Seller shall maintain, at its own expense, a blanket Fidelity Bond and an errors and omissions
insurance policy, with broad coverage on all officers, employees or other persons acting in any
capacity requiring such persons to handle funds, money, documents or papers relating to the
Mortgage Loans. These policies must insure Seller against losses resulting from theft, errors,
omissions, negligence, dishonest or fraudulent acts committed by Seller’s personnel, any employees
of outside firms that provide data processing services for Seller, and temporary contract employees
or student interns. The Fidelity Bond shall also protect and insure Seller against losses in
connection with the release or satisfaction of a Mortgage Loan without having obtained payment in
full of the indebtedness secured thereby. No provision of this Section 11.12 requiring such
Fidelity Bond and errors and omissions insurance shall diminish or relieve Seller from its duties
and obligations as set forth in this Agreement. The minimum coverage under any such Fidelity Bond
and insurance policy shall be at least equal to the corresponding amounts, including deductible
requirements, required by the Agency in the Servicing Guidelines, as amended or restated from time
to time, or in an amount as may be permitted to Seller by express waiver of the Agency. Upon
request of Purchaser, Seller shall cause to be delivered to Purchaser a certificate evidencing such
Fidelity Bond and insurance policy.

     Section 11.13. Title, Management and Disposition of REO Property.

     Subject to Section 11.02, if title to the Mortgaged Property is acquired in foreclosure or by
deed in lieu of foreclosure, the deed or certificate of sale shall be taken in the name of
Purchaser or its nominee, which, with the consent of Seller, may be Seller. The Person or Persons
holding such title other than Purchaser shall acknowledge in writing that such title is being held
as nominee for Purchaser. Unless Purchaser elects not to have Seller manage and dispose of the REO
Property and has notified Seller of such decision within five (5) Business Days of receiving a
notice from Seller that a foreclosure sale of a Mortgaged Property has occurred or that a
deed-in-lieu of foreclosure has been obtained, Seller shall manage and dispose of the REO Property.

     If Purchaser elects to have Seller manage and dispose of the REO Property, and the parties
agree with respect to management and disposition of an REO Property and the fee therefor, Seller
shall either itself, or through an agent selected by Seller, manage and dispose of the REO Property
in the same manner that it manages and disposes of other foreclosed property for its own account.
If, Purchaser does not timely notify Seller as provided above that it elects to have Seller manage
and dispose of the REO Property, or does not agree with Seller with respect to management and
disposition of the REO Property and the fee therefor, Purchaser shall be deemed to have elected
itself to manage and dispose of the REO Property, and Seller shall not thereafter have any
liability to Purchaser, or to any other Person, for or on account of the REO Property, including
without limitation any liability for the management and disposition of the REO Property.
Purchaser, however, shall promptly reimburse Seller for all costs and expenses incurred by Seller
with respect to the REO Property and the related Mortgage Loan, including without limitation any
unreimbursed Servicing Advances, unpaid Servicing Fees, unreimbursed advances made pursuant to
Section 11.17 and reasonable attorney’s fees. Once a REO Property is transferred to Purchaser,
Purchaser shall have no right to transfer it back to Seller

     If Purchaser and Seller have agreed that Seller shall manage and dispose of the REO Property,
prior to any disposition of REO Property, Seller shall provide notice to Purchaser of such proposed
disposition, requesting its consent thereto. If Purchaser has not expressly denied its

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consent by written notice to Seller within five (5) Business Days of the request therefor,
Purchaser shall be deemed to have consented to such disposition of REO Property. Upon the request
of Purchaser, Seller shall furnish Purchaser a statement describing Seller’s efforts in connection
with the sale of such REO Property.

     Seller shall cause to be deposited on a daily basis in the Custodial Account all revenues
received by it with respect to the REO Property and shall withdraw therefrom funds, as needed, to
pay any and all expenses relative to the REO Property, including but not limited to those necessary
for the proper operation, maintenance, repair, management, care, conservation, and protection of
the REO Property by it pursuant to this Section 11.13, including the cost of maintaining any hazard
or flood insurance pursuant to Section 11.10 hereof and the fees of any managing agent acting on
behalf of Seller. Any single disbursement in excess of $10,000 shall be made only with the
approval of Purchaser, provided, however, Seller may pay property taxes and insurance premiums
without obtaining Purchaser’s approval. Seller shall make distributions as required on each
Remittance Date to Purchaser of the net cash flow from the REO Property (which shall equal the
revenues from such REO Property net of the expenses described above and of any reserves reasonably
required from time to time to be maintained to satisfy anticipated liabilities for such expenses).

     The net proceeds of sale by Seller of a REO Property shall be promptly deposited in the
Custodial Account and, as soon as practical thereafter; (i) the expenses of such sale shall be
paid, including without limitation any commissions and the cost of any collateral assessment
reports performed pursuant to this Section; (ii) Seller shall reimburse itself for any related
unpaid expenses as described above, management fees, maintenance expenses or costs, unreimbursed
Servicing Advances, unpaid Servicing Fees, and unreimbursed advances made pursuant to Section
11.17; and (iii) the net cash proceeds of such sale remaining in the Custodial Account shall be
distributed to Purchaser on the next Remittance Date.

     Section 11.14. Servicing Compensation.

     As compensation for its services hereunder, Seller shall be entitled to retain the Servicing
Fee from interest payments on the Mortgage Loans. Additional servicing compensation in the form of
assumption fees, late payment charges, fees payable in connection with the conversion of any
Mortgage Loan which is a Convertible Mortgage Loan, fees for non-sufficient funds, prepayment
penalties or premiums, and other ancillary income shall be retained by Seller to the extent not
required to be deposited in the Custodial Account. Seller shall be required to pay all expenses
incurred by it in connection with its servicing activities hereunder and shall not be entitled to
reimbursement therefor except as specifically provided for herein.

     Section 11.15. Distributions.

     On each Remittance Date Seller shall remit by wire transfer of immediately available funds to
the account designated in writing by Purchaser of record on the preceding Record Date the sum of
(a) all amounts deposited in the Custodial Account as of that Record Date, plus (b) all amounts, if
any, which Seller is obligated to distribute pursuant to Section 11.17, minus (c) all amounts that
may be withdrawn from the Custodial Account pursuant to Section 11.05 (b) through (i), minus (d)
any amounts attributable to Monthly Payments collected but due on a Due Date or Due Dates
subsequent to the first day of the month of the Remittance Date.

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     With respect to any remittance received by Purchaser after the Business Day on which such
payment was due, Seller shall pay to Purchaser interest on any such late payment at the daily
federal funds rate. Such interest shall be paid by Seller to Purchaser on the date such late
payment is made and shall cover the period commencing with the Business Day on which such payment
was due and up to but excluding the Business Day on which such payment is made. The payment by
Seller of any such interest shall not be deemed an extension of time for payment or a waiver of any
Event of Default by Seller.

     Section 11.16. Statements to Purchaser.

     On or before each Determination Date, Seller shall forward to Purchaser a statement setting
forth (a) the amount of the distribution to be made on such Remittance Date which is allocable to
principal and allocable to interest; (b) the amount of servicing compensation received by Seller
during the prior calendar month; and (c) the aggregate Stated Principal Balance of the Mortgage
Loans as of the last day of the preceding month. Such statement shall also include information
regarding delinquencies on Mortgage Loans, indicating the number and aggregate principal amount of
Mortgage Loans which are either one (1), two (2) or three (3) or more month’s delinquent. Upon
written request of Purchaser, Seller shall deliver remittance information on a loan-by-loan basis
that is of the type typically maintained by Seller’s computerized servicing system. Upon request,
Seller shall provide Purchaser with a liquidation report with respect to each Mortgaged Property
sold in a foreclosure sale as of the related Record Date and not previously reported.

     Seller shall prepare and distribute to each Mortgagor forms required by applicable law
relating to interest paid by the Mortgagor on the Mortgage Loans and, to the extent that monies are
paid to the Mortgagor in respect of escrow accounts, forms relating to interest paid to the
Mortgagor. Seller shall provide Purchaser with such information as Purchaser may reasonably
request from time to time concerning the Mortgage Loans as is necessary for Purchaser to prepare
federal income tax returns.

     Section 11.17. Advances by Seller.

     On the Business Day immediately preceding each Remittance Date, Seller shall either (a)
deposit in the Custodial Account from its own funds an amount equal to the aggregate amount of all
Monthly Payments (with interest adjusted to the Mortgage Loan Remittance Rate) which were due on
the Mortgage Loans during the applicable Due Period, and which were delinquent on the close of
business on the immediately preceding Determination Date (each such advance, a “P&I Advance”), (b)
cause to be made an appropriate entry in the records of the Custodial Account that amounts held for
future distribution have been, as permitted by this Section 11.17, used by Seller in discharge of
any such P&I Advance or (c) make P&I Advances in the form of any combination of (a) or (b)
aggregating the total amount of advances to be made. Any amounts held for future distribution and
so used shall be replaced by Seller by deposit in the Custodial Account on or before any future
Remittance Date if funds in the Custodial Account on such Remittance Date shall be less than
payments to Purchaser required to be made on such Remittance Date. Seller’s obligation to make P&I
Advances as to any Mortgage Loan will continue through the latter to occur of (a) the last Monthly
Payment due prior to the payment in full of a Mortgage Loan, or (b) the last Remittance Date
following the ultimate liquidation of the

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Mortgage Loan and related REO Property and the
distribution of all other payments or recoveries (including proceeds under any title, hazard or
other insurance policy, or condemnation awards)
with respect to a Mortgage Loan; provided, however, that such obligation shall cease if Seller, in
its good faith judgment, determines that P&I Advances would not be recoverable pursuant to Section
11.05(d). The determination by Seller that an advance, if made, would be nonrecoverable, shall be
evidenced by an Officer’s Certificate of Seller delivered to Purchaser and detailing the reasons
for such determination.

     Section 11.18. Assumption Agreements.

     Seller will use its best efforts to enforce any “due-on-sale” provision contained in any
Mortgage or Mortgage Note, provided that Seller shall permit such assumption if so required in
accordance with the terms of the Mortgage or the Mortgage Note. When the Mortgaged Property has
been conveyed prior to payment in full of the Mortgage Loan, Seller will, to the extent it has
knowledge of such conveyance, exercise its rights to accelerate the maturity of such Mortgage Loan
under the “due-on-sale” clause applicable thereto; provided, however, Seller will not exercise such
rights if prohibited by law from doing so or if the exercise of such rights would impair or
threaten to impair any recovery under the related Primary Mortgage Insurance Policy, if any. In
connection with any such assumption, without the prior consent of Purchaser, Seller shall not
change the outstanding principal amount of the Mortgage Loan, the Monthly Payment and the Mortgage
Interest Rate of the related Mortgage Note, nor increase or decrease the term of the Mortgage Loan.
If an assumption is allowed pursuant to this Section 11.18, Seller, with the prior consent of the
issuer of the Primary Mortgage Insurance Policy, if any, is authorized to enter into a substitution
of liability agreement with the purchaser of the Mortgaged Property pursuant to which the original
Mortgagor is released from liability and the purchaser of the Mortgaged Property is substituted as
Mortgagor and becomes liable under the Mortgage Note.

     Notwithstanding the foregoing paragraph or any other provision of this Agreement, Seller shall
not be deemed to be in default, breach or any other violation of its obligations hereunder by
reason of any assumption of a Mortgage Loan by operation of law or any assumption which Seller may
be restricted by law from preventing, for any reason whatsoever. For purposes of this Section
11.18, the term “assumption” shall also include a sale of the Mortgaged Property subject to the
Mortgage that is not accompanied by an assumption or substitution of liability agreement.

     Section 11.19. Satisfaction of Mortgages and Release of Mortgage Loan Documents.

     Upon the payment in full of any Mortgage Loan, or the receipt by Seller of a notification that
payment in full will be escrowed in a manner customary for such purposes, Seller will obtain the
portion of the Mortgage Loan Documents that is in the possession of Purchaser or its designee,
prepare and process any required satisfaction or release of the Mortgage and notify Purchaser or
its designee in accordance with the provisions of this Agreement. Purchaser agrees to deliver or
cause to be delivered to Seller the Mortgage Loan Documents for any such Mortgage Loan not later
than three (3) Business Days following its receipt of a notice from Seller that such a payment in
full has been received or that a notification has been received that such a payment in full shall
be made. The Mortgage Note shall be held by Seller for the purpose of canceling such Mortgage Note
and delivering the canceled Mortgage Note to the Mortgagor in a timely manner as and to the extent
provided under applicable state law.

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     If Seller grants a satisfaction or release of a Mortgage without having obtained payment in
full of the indebtedness secured by the Mortgage and should Seller otherwise prejudice any right
Purchaser may have under the mortgage instruments, Seller shall remit to Purchaser the
Stated Principal Balance of the related Mortgage Loan by deposit thereof in the Custodial Account.
The Fidelity Bond shall insure Seller against any loss it may sustain with respect to any Mortgage
Loan not satisfied in accordance with the procedures set forth herein.

     Section 11.20. Annual Statement of Compliance.

     On or before March 1st of each year, Seller shall deliver to Purchaser an officer’s
certificate (each, an “Annual Statement of Compliance”) stating that (i) a review of the activities
of Seller during the preceding calendar year and of performance under this Agreement has been made
under such officers’ supervision and (ii) to the best of such officers’ knowledge, based on such
review, Seller has fulfilled all of its obligations under this Agreement throughout such year, or,
if there has been a default in the fulfillment of any such obligation, specifying each such default
known to such officer and the nature and status thereof, provided however, that a Servicing
Compliance Statement delivered pursuant to Section 11A.04 shall be deemed to comply with this
Section 11.20.

     Section 11.21. Annual Independent Public Accountants’ Servicing Report.

     On or before March 1st of each year, Seller at its expense shall cause a firm of
independent public accountants which is a member of the American Institute of Certified Public
Accountants to furnish to Purchaser a statement for the calendar year just ended to the effect that
such firm has, with respect to Seller’s overall servicing operations, examined such operations in
accordance with the requirements of the Uniform Single Attestation Program for Mortgage Bankers,
stating such firm’s conclusions relating thereto, provided however, that a Report on Assessment of
Compliance and Attestation delivered pursuant to Section 11A.05 shall be deemed to comply with this
Section 11.21.

     Section 11.22. Seller Shall Provide Access and Information as Reasonably Required.

     Seller shall provide to Purchaser, and for any Purchaser insured by FDIC, the supervisory
agents and examiners of FDIC and the applicable financial institution regulator, access to any
documentation regarding the Mortgage Loans which may be required by applicable regulations;
provided, however, that any such access shall be (i) upon reasonable advance notice to Seller, (ii)
at Purchaser’s expense, (iii) during Seller’s normal business hours, and (iv) in a manner which
conforms to Seller’s security and confidentiality policies and does not unreasonably interfere with
Seller’s business.

     Section 11.23. Notification of Adjustments.

     On each Adjustment Date, Seller shall make interest rate adjustments for each Adjustable Rate
Mortgage Loan in compliance with the requirements of the related Mortgage and Mortgage Note.
Seller shall execute and deliver the notices required by each Mortgage and Mortgage Note regarding
interest rate adjustments. Seller also shall provide timely notification to Purchaser of all
applicable data and information regarding such interest rate.

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     Section 11.24 Whole Loan Transfers or Securitization Transactions.

     Seller and Purchaser agree that with respect to the Mortgage Loans in each Mortgage Loan
Package, Purchaser may effect one or more Whole Loan Transfers and one or more
Securitization Transactions (each, a “Reconstitution”); provided, however, that if the number
of Reconstitutions from a single Mortgage Loan Package exceeds two, Purchaser will pay to Seller a
fee in the amount of $5,000 (the “Reconstitution Fee”) for the third and each subsequent
Reconstitution that includes one or more Mortgage Loans from the same Mortgage Loan Package.

     With respect to each Reconstitution, Purchaser shall give Seller a written notice of such
Reconstitution setting forth: (i) Seller’s applicable Mortgage Loan identifying number for each
Mortgage Loan affected by the Reconstitution; (ii) the aggregate scheduled transfer balance of such
Mortgage Loans; and (iii) the full name, address and wiring instructions of the Transferee and the
name and telephone number of an the authorized individual representative for such Transferee, to
whom Seller should (A) send remittances; (B) send any notices required by or provided for in this
Agreement; and (C) deliver any legal documents relating to the Mortgage Loans (including but not
limited to, contents of any Mortgage File obtained after the effective date of any assignment).

     With respect to each Reconstitution, Purchaser shall pay Seller the Reconstitution Fee;
reimburse Seller for any and all expenses, costs and fees incurred by Seller in response to
requests for information and assistance under this Section 11.24 and Section 11A; and shall execute
and deliver to Seller an Assignment, Assumption and Recognition Agreement substantially in the form
of Exhibit 5 for Whole Loan Transfers or substantially in the form of Exhibit 6 hereto, together
with an Indemnification Agreement substantially in the form of Exhibit 7 for Securitization
Transactions; provided, however, that, with respect to this Agreement or any Mortgage Loan subject
of a Reconstitution, Seller shall be under no obligation to deal with any Person as Purchaser,
other than the undersigned, unless a duly executed Assignment, Assumption and Recognition Agreement
substantially in the form of Exhibit 5 or Exhibit 6 hereto, or in a form satisfactory to Seller as
described in (b) below, together with the Reconstitution Fee therefor, has been delivered to
Seller.

     Purchaser shall not assign any of the rights or benefits with respect to any of the Mortgage
Loans or this Agreement separate from Purchaser’s obligations under this Agreement, unless Seller
shall have first received from a Purchaser-affiliated indemnifier acceptable to Seller, which has
financial strength satisfactory to Seller, a written indemnification satisfactory to Seller,
indemnifying Seller for timely performance of Purchaser’s obligations under this Agreement.

     With respect to each Reconstitution, Seller agrees provided that any Reconstitution Fee due
has been paid:

     (a) to cooperate with the reasonable requests of Purchaser and a Transferee;

     (b) to execute agreements reasonably required to be executed by Seller in connection with such
Securitization Transaction or Whole Loan Transfer (including, an assignment assumption and
recognition agreement substantially in the form of Exhibit 5 for Whole Loan

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Transfers or
substantially in the form of Exhibit 6, together with an Indemnification Agreement substantially in
the form of Exhibit 7 for Securitization Transactions), provided that any such agreements be
consistent with the terms hereof and impose no greater duties, liabilities or obligations upon
Seller than those set forth herein and provided that Seller is given an opportunity to review and
reasonably negotiate in good faith the content of such documents not
specifically referenced or provided for herein, and provided further the form of any Reconstitution
Agreement or indemnification agreement (other than agreements substantially in the form of Exhibits
5, 6, and 7 hereto) to be entered into by Purchaser and Seller, if any, with respect to
Reconstitutions shall be satisfactory in form and substance to Seller (giving due regard to any
rating agency requirements), and no such Reconstitution Agreement or Reconstitution Agreements
shall change or modify, by amendment, incorporation or otherwise, the representations and
warranties, servicing provisions, and indemnity and liability obligations set forth in this
Agreement, unless agreed to by Seller;

     (c) With respect to a Reconstitution in connection with a Securities Transaction, to bring
down the representations and warranties of Sections 6.01 to the date of closing of the
Securitization Transaction of the Mortgage Loan, only provided that the date of closing of that
Securitization Transaction of the Mortgage Loan occurs on or before the last Business Day of the
calendar month following the calendar month of the related Closing Date of the Mortgage Loan, and
to execute an appropriate Bring Down Letter not inconsistent with the terms and conditions hereof,
substantially in the form of Exhibit 8 hereto. No other document need be prepared indicating that
Seller is making such representations and warranties as to the applicable Mortgage Loans as of such
date;

     (d) to deliver to Purchaser or Purchaser’s Agent for inclusion in a prospectus or other
offering material in connection with a Securitization Transaction of Mortgage Loans the information
required to be provided pursuant to Section 11A below; provided that any and all expenses in
connection with providing such information, including the costs of any comfort letters, shall be
paid by Purchaser;

     (e) to arrange for delivery to Purchaser and to any Person designated by Purchaser, at
Purchaser’s expense, such comfort letters of reputable, certified public accountants pertaining to
information provided by Seller pursuant to clause (d) above as shall be reasonably requested by
Purchaser; and

     It is expressly understood that, in any Reconstitution Agreement or other Reconstitution
document (other than agreements substantially in the form of Exhibits 5, 6, and 7 hereto), whether
or not incorporated into an Assignment, Assumption and Recognition Agreement, Seller is not
required without its consent to:

	 	(a)	 	enter into a servicing agreement other than this Agreement, or service the
Mortgage Loans according to servicing guidelines other than the Servicing Guidelines as
defined herein;
	 
	 	(b)	 	increase its liability, servicing obligations or procedures without its consent
and adequate additional compensation therefor;
	 
	 	(c)	 	decrease its fees or other income from servicing;

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	 	(d)	 	make any Rule 10b–5 type of representations, warranties, or indemnities, except
(i) to Purchaser and its underwriter and only for information provided by Seller, in
the complete form provided by Seller, for inclusion in a prospectus or prospectus
supplement in connection with a Securitization Transaction involving Mortgage Loans,
and only provided that Seller receive, in turn, from a Purchaser
affiliated indemnifier acceptable to Seller, which has financial strength
satisfactory to Seller, and in a writing in the form of Exhibit 7 hereto,
cross-indemnities for any losses or damages as a result of all other information in
such prospectus or prospectus supplement; or (ii) to Purchaser or Purchaser’s Agent
in an annual certification in the form of Exhibit 11 hereto;
	 
	 	(e)	 	bring down any representations and warranties set forth in Sections 6.01 of
this Agreement beyond the time allowed for such bringdown as stated in this Section
11.24 above; or
	 
	 	(f)	 	increase any reporting obligations to assess compliance with the terms of this
Agreement.

     Section 11.25 Compliance With REMIC Provisions.

          If Seller has received written notice from Purchaser or Purchaser’s Agent that a REMIC
election has been made with respect to the arrangement under which any Mortgage Loans and REO
Property are held, Seller shall not take any action, or omit to take any action, that, under the
REMIC Provisions, if taken or not taken, as the case may be, would (i) cause the termination of the
status of the REMIC as a REMIC, (ii) result in the imposition of a tax upon the REMIC (including
but not limited to the tax on “prohibited transactions” as defined in Section 860F(a)(2) of the
Code and the tax on “contributions” to a REMIC set forth in Section 860G(d) of the Code), or (iii)
cause any REO Property to fail to qualify as “foreclosure property” within the meaning of Section
860G(a)(8) of the Code or result in the receipt by the REMIC of any “income from non-permitted
assets” within the meaning of Section 860F(a)(2)(B) of the Code or any “net income from foreclosure
property” which is subject to taxation under Section 860G(a)(1) of the Code, unless either (A)
Seller has received an opinion of counsel (at the expense of the party seeking to take such action)
to the effect that the contemplated action will not endanger such REMIC status or result in the
imposition of any such tax, or (B) Purchaser or its assignee has directed or requested the
contemplated action after being advised by Seller that such action might compromise the REMIC, in
which case Seller shall not be responsible for obtaining such opinion of counsel.

     If Seller has received written notice from Purchaser or Purchaser’s Agent that a REMIC
election has been made with respect to the arrangement under which REO Property is held, Seller
shall use good faith efforts to dispose of such REO Property within three years or such other
period as may be permitted under Section 860G(a)(8) of the Code. Notwithstanding any other
provision of this Agreement, Seller shall have no liability under this Agreement for not selling
any REO Property within such three year period if, after Seller has made a good faith effort to
dispose of the REO Property, the REO Property is unsalable for any reason, or if Purchaser
withholds its consent to the disposition thereof. Seller shall in no event be obligated to
purchase the REO Property.

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Section 11.26 Fair Credit Reporting Act.

     Seller, in its capacity as servicer for each Mortgage Loan, agrees to fully furnish, in
accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and
complete information (e.g. favorable and unfavorable) on its borrower credit files to Equifax,
Experian and Trans Union Credit Information, on a monthly basis.

     SECTION 11A. Compliance with Regulation AB.

     Section 11A.01. Regulation AB Matters .

     In order to facilitate a Securitization Transaction, Seller agrees pursuant to the provisions
of this Agreement to provide Purchaser, its designees, affiliates, successors and assigns with such
information as is necessary to comply with Regulation AB. Purchaser shall not exercise its right
to request delivery of information or other performance under these provisions other than in good
faith, or for purposes other than compliance with the Securities Act, the Exchange Act and the
rules and regulations of the Commission thereunder. Purchaser (including any of its assignees or
designees) shall cooperate with Seller to afford Seller timely notice of parties and calculations
of requisite threshold percentages involved in a Securitization Transaction; to afford Seller
reasonable lead time to provide the information necessary for compliance with Regulation AB; to
minimize where possible the burden of Seller, and by reasonably limiting requests to information
required, in Purchaser’s reasonable judgment, to comply with Regulation AB.

     Section 11A.02. Additional Representations and Warranties of Seller.

     (a) Seller hereby represents and warrants to Purchaser, any Master Servicer and to any
Depositor, as of the date on which information is first provided to Purchaser, any Master Servicer
or any Depositor under Section 11A.03 that, except as disclosed in writing to Purchaser, such
Master Servicer or such Depositor prior to such date:

(i) Seller is not aware and has not received notice that any default, early amortization or
other performance triggering event has occurred as to any other securitization;

(ii) Seller has not been terminated as servicer in a residential mortgage loan
securitization, either due to a servicing default or to application of a servicing
performance test or trigger;

(iii) no material noncompliance with the applicable Serving Criteria with respect to other
securitizations of residential mortgage loans involving Seller as servicer has been
disclosed or reported by Seller;

(iv) no material changes to Seller’s policies or procedures with respect to the servicing
function it will perform under the Agreement and any applicable Reconstitution Agreement
related thereto for mortgage loans of a type similar to the Mortgage Loans have occurred
during the three-year period immediately preceding the related Securitization Transaction;

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(v) there are no aspects of Seller’s financial condition that are expected to have a
material adverse effect on the performance by Seller of its servicing obligations under the
Agreement or any applicable Reconstitution Agreement related thereto;

(vi) there are no legal proceedings pending (or known to be contemplated by governmental
authorities) against Seller, any Subservicer or any Third-Party Originator that are material
to security holders; and

(vii) there are no affiliations, relationships or transactions relating to Seller, any
Subservicer or any Third-Party Originator with respect to any Securitization Transaction and
any party thereto identified by the related Depositor of a type described in Item 1119 of
Regulation AB.

     (b) If so requested by Purchaser, any Master Servicer or any Depositor on any date following
the date on which information is first provided to Purchaser, any Master Servicer or any Depositor
under Section 11A.03, Seller shall, within five Business Days following such request, confirm in
writing the accuracy of the representations and warranties set forth above or, if any such
representation and warranty is not accurate as of the date of such request, provide reasonably
adequate disclosure of the pertinent facts, in writing, to the requesting party.

     Section 11A.03. Information to Be Provided by Seller .

     In connection with any Securitization Transaction occurring on or after January 1, 2006, and
provided Seller receives written request from Purchaser, identifying the Mortgage Loans in the
Securitization Transaction, notifying Seller that the Mortgage Loans meet the threshold percentages
of Regulation AB, and stating those percentages, Seller shall (i) within five Business Days
following request by Purchaser or any Depositor, provide to Purchaser or such Depositor (or, as
applicable, cause each Third-Party Originator and each Subservicer to provide), in writing, the
information and materials specified in paragraphs (a), (b), (c), (f), and (g) of this Section
11A.03, and as promptly as practicable following notice to or discovery by Seller, provide to
Purchaser and any Depositor (as required by Regulation AB) the information specified in paragraph
(d) of this Section 11A.03.

     (a) If so requested by Purchaser or any Depositor and necessary for compliance with Regulation
AB, Seller shall provide such information regarding (i) Seller, as originator of the Mortgage Loans
(including as an acquirer of Mortgage Loans from a Qualified Correspondent), or (ii) each
Third-Party Originator of the Mortgage Loans, and (iii) as applicable, each Subservicer, in each
case, as is requested and necessary for the purpose of compliance with Items 1105, 1110, 1117 and
1119 of Regulation AB. Such information shall include:

     (A) the originator’s form or organization;

     (B) a description of the originator’s origination program and how long the originator
has been engaged in originating residential mortgage loans, which description shall include
a discussion of the originator’s experience in originating mortgage loans of a similar type
as the Mortgage Loans; information regarding the size and composition of

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the originator’s
portfolio; and information that may be material to an analysis of the performance of the
Mortgage Loans, including the originators’ credit-granting or underwriting criteria for
mortgage loans of similar type(s) as the Mortgage Loans and such other information as
Purchaser or any Depositor may reasonably request for the purpose of compliance with Item
1110(b)(2) of Regulation AB;

     (C) a brief description of any legal proceedings pending (or known to be contemplated
by governmental authorities) against Seller, each Third-Party Originator and each
Subservicer that are material to security holders; and

     (D) a description of any affiliation or relationship between Seller, each Third-Party
Originator, each Subservicer and any of the following parties to a Securitization
Transaction, as such parties are identified to Seller by Purchaser or any Depositor in
writing in advance of such Securitization Transaction:

	 	(1)	 	any Servicer;
	 
	 	(2)	 	any trustee;
	 
	 	(3)	 	any originator;
	 
	 	(4)	 	any significant obligor;
	 
	 	(5)	 	any enhancement or support provider; and
	 
	 	(6)	 	any other material transaction party.

     (b) If so requested by Purchaser or any Depositor, and necessary for compliance with
Regulation AB, Seller shall provide (or, as applicable, cause each Third-Party Originator to
provide) Static Pool Information with respect to Mortgage Loans originated by Seller if Seller is
an originator of Mortgage Loans (including as an acquirer of Mortgage Loans from a Qualified
Correspondent), and/or each Third-Party Originator. Such Static Pool Information shall be prepared
by Seller (or Third-Party Originator) on the basis of its reasonable, good faith interpretation of
the requirements of Item 1105(a)(1)-(3) of Regulation AB. The content of such Static Pool
Information may be in the form customarily provided by Seller, and need not be customized for
Purchaser or any Depositor. Such Static Pool Information for each vintage origination year or
prior securitized pool, as applicable, shall be presented in increments no less frequently than
quarterly over the life of the mortgage loans included in the vintage origination year or prior
securitized pool. The most recent periodic increment must be as of a date no later than 135 days
prior to the date of the prospectus or other offering document in which the Static Pool Information
is to be included or incorporated by reference. The Static Pool Information shall be provided in
an electronic format that provides a permanent record of the information provided, such as a
portable document format (pdf) file, or other such electronic format agreeable to Seller and
Purchaser. Promptly following notice or discovery of a material error in the information provided
pursuant to this subsection (b) (including an omission to include therein information required to
be provided pursuant thereto), Seller shall provide corrected information to Purchaser or any
Depositor in the same format in which the information was previously provided to such party by the
Seller.

     If so requested by Purchaser or any Depositor, Seller shall provide (or, as applicable, cause
each Third-Party Originator to provide), at the expense of the requesting party (to the extent of
any additional incremental expense associated with delivery pursuant to the

49

 

Agreement), such
comfort letter statements and agreed-upon procedures of certified public accountants therefor
reasonably relating to prior securitized pools for securitizations closed on or after January 1,
2006 or, in the case of Static Pool Information with respect to Seller’s or Third-Party
Originator’s originations or purchases, to calendar months commencing January 1, 2006, as Purchaser
or Depositor shall reasonably request. Such statements and letters shall be addressed to and be
for the benefit of such parties as Purchaser or such Depositor shall designate, which may include,
by way of example, any sponsor, any Depositor and any broker dealer acting as underwriter,
placement agent or initial purchaser with respect to a Securitization Transaction, and subject to
such conditions as may be imposed by the certified public accountants therefor. Any such statement
or letter may take the form of a standard, generally applicable document
accompanied by a reliance letter authorizing reliance by the addressees designated by Purchaser or
such Depositor.

     (c) If so requested by Purchaser or any Depositor and necessary for compliance with Regulation
AB, Seller shall provide such information regarding Seller, as servicer of the Mortgage Loans, and
each Subservicer, if any, of the Mortgage Loans (each of Seller and each Subservicer, for purposes
of this paragraph, a “Servicer”), as is necessary for compliance with Items 1108, 1117 and 1119 of
Regulation AB. Such information shall include:

A) the Servicer’s form of organization:

(B) a description of how long the Servicer has been servicing residential mortgage
loans; a general discussion of the Servicer’s experience in servicing assets of any type as
well as a more detailed discussion of the Servicer’s experience in, and procedures for, the
servicing function it will perform under this Agreement and any applicable Reconstitution
Agreements related thereto; information regarding the size, composition and growth of the
Servicer’s portfolio of residential mortgage loans of a type similar to the Mortgage Loans
and information on factors related to the Servicer that may be material to any analysis of
the servicing of the Mortgage Loans or the related asset-backed securities, as applicable:

     (1) whether any prior securitizations of mortgage loans of a type similar to
the Mortgage Loans involving the Servicer have defaulted or experienced an early
amortization or other performance triggering event because of servicing during the
three-year period immediately preceding the related Securitization Transaction;

     (2) the extent of outsourcing the Servicer utilizes;

     (3) whether there has been previous disclosure of material noncompliance with
the applicable Servicing Criteria with respect to other securitizations of
residential mortgage loans involving the Servicer as a servicer during the
three-year period immediately preceding the related Securitization Transaction;

     (4) whether the Servicer has been terminated as servicer in a residential
mortgage loan securitization, either due to a servicing default or to application of
a servicing performance test or trigger; and

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     (5) such other information as Purchaser or any Depositor may reasonably request
for the purpose of compliance with Item 1108(b)(2) of Regulation AB.

(C) a description of any material changes during the three-year period immediately
preceding the related Securitization Transaction to the Servicer’s policies or procedures
with respect to the servicing function it will perform under the Agreement and any
applicable Reconstitution Agreements related thereto for mortgage loans of a type similar to
the Mortgage Loans/

(D) information regarding the Servicer’s financial condition, to the extent that there
is a material risk that an adverse financial event or circumstance involving the Servicer
could have a material adverse effect on the performance by Seller of its servicing
obligations under the Agreement or any applicable Reconstitution Agreement related thereto;

(E) information regarding advances made by the Servicer on the Mortgage Loans and the
Servicer’s overall servicing portfolio of residential mortgage loans for the three-year
period immediately preceding the related Securitization Transaction, which may be limited to
a statement by an authorized officer of the Servicer to the effect that the Servicer has
made all advances required to be made on residential mortgage loans serviced by it during
such period, or, if such statement would not be accurate, information regarding the
percentage and type of advances not made as required, and the reasons for such failure to
advance;

(F) a description of the Servicer’s processes and procedures designed to address any
special or unique factors involved in servicing loans of a similar type as the Mortgage
Loans;

(G) a description of the Servicer’s processes for handling delinquencies, losses,
bankruptcies and recoveries, such as through liquidation or mortgaged properties, sale of
defaulted mortgage loans or workouts;

(H) information as to how the Servicer defines or determines delinquencies and
charge-offs, including the effect of any grace period, re-aging, restructuring, partial
payments considered current or other practices with respect to delinquency and loss
experience;

(I) a brief description of any legal proceedings pending (or known to be contemplated
by governmental authorities) against the Servicer that are material to security holders; and

(J) a description of any affiliation or relationship between the Servicer and any of
the following parties to a Securitization Transaction, as such parties are identified to the
Servicer by Purchaser or any Depositor in writing in advance of such Securitization
Transaction:

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	 	(1)	 	any servicer;
	 
	 	(2)	 	any trustee;
	 
	 	(3)	 	any originator;
	 
	 	(4)	 	any significant obligor;
	 
	 	(5)	 	any enhancement or support provider; and
	 
	 	(6)	 	any other material transaction party.

     (d) If so requested by Purchaser or any Depositor and necessary for compliance with Regulation
AB for the purpose of satisfying reporting obligations under the Exchange Act with respect to any
class of asset-backed securities, Seller shall (or shall cause each Subservicer and Third-Party
Originator to):

     (i) promptly notify Purchaser and Purchaser’s Agent in writing of

	 	(A)	 	any legal proceedings pending (or known to be contemplated by
governmental authorities) against Seller, any Subservicer or any Third-Party
Originator, which are material to security holders,
	 
	 	(B)	 	with respect to such Securitization Transaction, any affiliate
relationships necessary to be disclosed by Item 1119 of Regulation AB that develop
following the closing date of a Securitization Transaction between Seller, any
Subservicer or any Third-Party Originator, and any of the parties specified in
clause (D) of paragraph (a) of this Section;
	 
	 	(C)	 	any Event of Default under the terms of this Agreement or any
applicable Reconstitution Agreement related thereto;
	 
	 	(D)	 	any merger, consolidation or sale of substantially all of the assets of
Seller; and
	 
	 	(E)	 	Seller’s entry into an agreement with a Subservicer to perform or
assist in the performance of any of Seller’s obligations under this Agreement or
any applicable Reconstitution Agreement related thereto with respect to the
Mortgage Loans; and

     (ii) provide to Purchaser and any Depositor a description of such proceedings, affiliations or
relationships.

     (e) As a condition to the succession to Seller or any Subservicer as seller or subservicer
under this Agreement or any applicable Reconstitution Agreement related thereto by any Person (i)
into which Seller or any Subservicer is merged or consolidated or (ii) which may be appointed as a
successor to Seller or any Subservicer, Seller shall provide to Purchaser and Purchaser’s Agent, at
least 15 days prior to the effective date of such succession or appointment (x) written notice of
such succession or appointment, and (y), within ten (10 days of receipt of a written request of
Purchaser or any Depositor all information reasonably requested in order to comply with the
reporting obligation of Purchaser or its designee under Item 6.02 of Form 8-K.

     (f) Not later than ten days prior to the deadline for the filing of any distribution report on
Form 10-D in respect to any Securitization Transaction that includes any of the Mortgage

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Loans
serviced by Seller or any Subservicer, as part of its regular monthly report to Purchaser or its
designee, Servicer shall, to the extent Seller or such Subservicer has knowledge, provide to the
party responsible for filing such report (including, if applicable, the Master Servicer) notice of
the occurrence of any of the following , together with such information and data related thereto as
may be required to be included in such report (as specified in the provisions of Regulation AB
referenced below):

	 	(i)	 	any material modifications, extensions or waivers of the terms, fees, penalties
or payments of the Mortgage Loans during the distribution period, or that have
cumulatively become material over time (Item 1121(a) (11) of Regulation AB);
	 
	 	(ii)	 	material breaches of Mortgage Loan representations and warranties or covenants
(Item 1121(a)(12) of Regulation AB); and
	 
	 	(iii)	 	information regarding new asset backed securities issuances backed by the same
Mortgage Loans, any Mortgage Loan changes (such as additions, substitutions, or
repurchases), and any material changes in origination, underwriting or other criteria
for acquisitions or selection of the Mortgage Loans (Item 1121(a)(14) of Regulation
AB).

     (g) Upon request of Purchaser or Purchaser’s Agent, Seller shall provide to Purchaser and
Purchaser’s Agent, such other information related to Seller or any Subservicer or Seller or such
Subservicer’s performance hereunder as may be necessary for compliance with Regulation AB.

     Section 11A.04. Servicer Compliance Statement .

     On or before March 1st of each calendar year, commencing in 2007, Seller shall deliver to the
Purchaser or Purchaser’s Agent a statement of compliance addressed to Purchaser, any Master
Servicer and any Depositor and signed by an authorized officer of Seller, to the effect that (i) a
review of Seller’s activities during the immediately preceding calendar year (or applicable portion
thereof) and of its performance under this Agreement and any applicable Reconstitution Agreement
related thereto during such period has been made under such officer’s supervision, and (ii) to the
best of such officer’s knowledge, based on such review, Seller has fulfilled all of its obligations
under this Agreement and any applicable Reconstitution Agreement related thereto in all material
respects throughout such calendar year (or applicable portion thereof) or, if there has been a
failure to fulfill any such obligation in any material respect, specifically identifying each such
failure known to such officer and the nature and the status thereof.

     Section 11A .05. Report on Assessment of Compliance and
Attestation .

     (a) On or before March 1st of each calendar year, commencing in 2007, Seller shall:

          (i) deliver to Purchaser and Purchaser’s Agent a report regarding Seller’s assessment of
compliance with the Servicing Criteria specified on Exhibit 9 hereto during the immediately
preceding calendar year, as required under Rules 13a-18 and 15d-18 of the Exchange Act and Item
1122 of Regulation AB, in the form annexed hereto as Exhibit 10. Such

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report shall be addressed to
Purchaser, any Master Servicer, and any Depositor and signed by an authorized officer of Seller,
and shall address each of the applicable Servicing Criteria specified on Exhibit 9 hereto;

          (ii) deliver to Purchaser or Purchaser’s Agent a report of a registered public accounting firm
that attests to, and reports on, the assessment of compliance made by Seller and delivered pursuant
to the preceding paragraph. Such attestation shall be in accordance with Rules 1-02(a)(3) and
2-02(g) of Regulation S-X under the Securities Act and the Exchange Act;

          (iii) cause each Subservicer, and each Subcontractor determined by Seller to be “participating
in the servicing function” within the meaning of Item 1122 of Regulation AB, to deliver to
Purchaser or Purchaser’s Agent an assessment of compliance and accountants’ attestation as and when
provided in paragraphs (a) and (b) of this Section;

          (iv) for so long as any of the Mortgage Loans are being serviced by Seller as part of a
Securitization Transaction and if requested by Purchaser or any Depositor not later than February 1
of the calendar year in which such certification is to be delivered (except that no request is
required in the first year after the date of the Securitization), deliver, and cause each
Subservicer and Subcontractor described in clause (iii)above to deliver, to Purchaser, Purchaser’s
Agent and any other Person who will be responsible for signing the certification (a “Sarbanes
Certification”) required by Rules 13a-14(d) and 15d-14(d) under the Exchange Act (pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002) on behalf of an asset-backed issuer with respect to
a Securitization Transaction, signed by the appropriate officer of the Seller, a certification in
the form attached as Exhibit 11.

     Seller acknowledges that the parties identified in clause (a)(iv) above may rely on the
certification provided by Seller pursuant to such clause in signing a Sarbanes Certification filing
such with the Commission. Neither the Purchaser nor any Depositor will request delivery of a
certification under clause (a)(iv) above unless a Depositor is required under the Exchange Act to
file an annual report on Form 10-K with respect to an issuing entity whose asset pool includes
Mortgage Loans.

     (b) Each assessment of compliance provided by a Subservicer pursuant to Section
11A .05 (a)(i) shall address each of the applicable Servicing Criteria specified on
Exhibit 9 hereto delivered to Purchaser concurrently with the execution of this Agreement or, in
the case of a Subservicer subsequently appointed as such, on or prior to the date of such
appointment. An assessment of compliance provided by a Subcontractor pursuant to Section
11A .05 (a)(iii) need not address any elements of the Servicing Criteria other than those
specified by Seller pursuant to Section 11A.06(b) . For purposes of clarification, the
following terms used in Exhibit 9 shall have the following means for the purposes of the assessment
of compliance:

	 	(i)	 	Regarding 1122(d)(2)(iii), “related accounts” means one or more custodial
accounts maintained pursuant to the agreement or agreements to which Servicer is a
party; and “transaction agreements” means the agreement or agreements to which
Servicer is a party;

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	 	(ii)	 	Regarding 1122(d)(3)(i) through (iv), “Reports to investors”; “investor
reports” and “reports” each mean, where used, reports Servicer delivers to Purchaser or
its agent, such as a master servicer;
“investor” and “investors” each mean, where used, Purchaser or Purchaser’s agent;

“transaction agreements” means, where used, agreements to which Servicer is a party.
	 
	 	(iii)	 	Regarding 1122(d)(3)(i) (C) and (D), Servicer has no knowledge of, and is not
responsible for, Commission filings, or books and records of others, such as trustees,
investors or master servicers.

     Section 11A.06. Use of Subservicers and Subcontractors .

     Seller shall not hire or otherwise utilize the services of any Subservicer to fulfill any of
the obligations of Seller as servicer under this Agreement or any applicable Reconstitution
Agreement related thereto unless Seller complies with the provisions of paragraph (a) of this
Section. Seller shall not hire or otherwise utilize the services of any Subcontractor, and shall
not permit any Subservicer to hire or otherwise utilize the services of any Subcontractor, to
fulfill any of the obligations of Seller as servicer under this Agreement or any applicable
Reconstitution Agreement related thereto unless Seller complies with the provisions of paragraph
(b) of this Section.

     (a) It shall not be necessary for Seller to seek the consent of Purchaser, any Master
Servicer or any Depositor to the utilization of any Subservicer. If necessary for compliance with
Reg. AB, and after reasonable notice from Purchaser of the parties involved in Purchaser’s
Securitization Transaction and their threshold percentage involvement, Seller shall cause any
Subservicer used by Seller (or by any Subservicer of Seller) to for the benefit of Purchaser and
any Depositor to comply with the provisions of this Section and with Sections 11A.02, 11A.03(c),
(e), (f) and (g), 11A.04, 11A.05 and 11A.07 of this Agreement as if such Subservicer were Seller,
and to provide the information required with respect to such Subservicer under Section 11A.03(d) of
this Agreement. Seller shall be responsible for obtaining from each Subservicer and delivering to
Purchaser any servicer compliance statement required to be delivered by such Subservicer under
Section 11A .04, any assessment of compliance and attestation required to be delivered by
such Subservicer under Section 11A .05 and any certification required to be delivered to
the Person that will be responsible for signing the Sarbanes Certification under Section
11A .05 as and when required to be delivered pursuant to this Agreement.

     (b) It shall not be necessary for Seller to seek the consent of Purchaser or any Purchaser’s
Agent to the utilization of any Subcontractor. If necessary for compliance with Reg. AB, and after
reasonable notice from Purchaser of the parties involved in Purchaser’s Securitization Transaction
and their threshold percentage involvement, Seller shall promptly upon request provide to Purchaser
(or any designee of Purchaser, such as a Master Servicer) a written description of the role and
function of each Subcontractor utilized by Seller or any Subservicer who is “participating in the
servicing function” within the meaning of Item 1122 of Regulation AB and Instruction 2 to the
Instructions to Item 1122, specifying which elements of

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the Servicing Criteria will be addressed in
assessments of compliance provided by each Subcontractor identified pursuant to this paragraph.

     (c) As a condition to the utilization of any Subcontractor determined to be “participating in
the servicing function within the meaning of Item 1122 of Regulation AB, Seller shall cause any
such Subcontractor used by Seller (or by any Subservicer) to comply with the provisions of Sections
11A.05 and 11A. 07 of this Agreement to the same extent as if such Subcontractor were Seller.
Seller shall be responsible for obtaining from each Subcontractor and delivering to Purchaser and
Purchaser’s Agent any such assessment of compliance and attestation required to be delivered by
such Subcontractor and such Subservicer under Section 11.04, in each case as and when required to
be delivered pursuant to this Agreement.

     Section 11A.07. Indemnifications; Remedies.

     (a) Seller shall indemnify Purchaser, each affiliate of Purchaser, and each of the following
parties participating in a Securitization Transaction: each sponsor and issuing entity; each Person
(including, but not limited to, any Master Servicer if applicable) responsible for the preparation,
execution or filing of any report required to be filed with the Commission with respect to such
Securitization Transaction, or for execution of a certification pursuant to Rule
13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such Securitization Transaction,
each broker dealer acting as underwriter, placement agent or initial purchaser, each Person who
controls any of such parties or the Depositor (within the meaning of Section 15 of the Securities
Act and Section 20 of the Exchange Act); and the respective present and former directors, officers,
employees, agents and affiliates of each of the foregoing and of the Depositor (each, an
“Indemnified Party”), and shall hold each of them harmless from and against any claims, losses,
damages, penalties, fines, forfeitures, legal fees and expenses and related costs, judgments, and
any other costs, fees and expenses that any of them may sustain arising out of or based upon:

(i)(A) any untrue statement of a material fact contained or alleged to be contained in
Seller Information or (B) or the omission or alleged omission to state in Seller Information
a material fact required to be stated in Seller Information or necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; provided, by way of clarification, that clause (B) of this paragraph shall be
construed solely by reference to Seller Information and not to any other information
communicated in connection with a sale or purchase of securities, without regard to whether
Seller Information or any portion thereof is presented together with or separately from such
other information;

(ii) any breach by Seller of its obligations under this Section 11A, including
particularly any failure by the Company, any Subservicer, any Subcontractor or any
Third-Party Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under this Section 11A, including any failure
by Seller to identify pursuant to Section 11A.06(b) any Subcontractor “participating in the
servicing function” within the meaning of Item 1122 of Regulation AB; or

(iii) any breach by Seller of a representation or warranty set forth in, or furnished
pursuant to, Section 11A.02(a) and made as of a date prior to the closing date of the

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related Securitization Transaction, to the extent that such breach is not cured by such
closing date, or any breach by Seller of a representation or warranty in a writing furnished
pursuant to Section 11A.02(b) to the extent made as of a date subsequent to such closing
date; or

     (iv) the negligence bad faith or willful misconduct of Seller in connection with its
performance under this Section 11A.

     These indemnities shall survive termination of this Agreement. If the indemnification
provided for in this Section 11A.07 is unavailable or insufficient to hold harmless an Indemnified
Party as so provided in this Section 11A.07, then Seller agrees that it shall contribute to the
amount paid or payable by such Indemnified Party, as a result of the indemnified losses, claims,
damages or liabilities incurred by such Indemnified Party in such proportion as is appropriate to
reflect the relative fault of the Indemnified Party on the one hand and Seller on the other.

     In the case of any failure of performance described in clause (a)(ii) of this Section, Seller
shall promptly reimburse Purchaser, any Depositor, applicable, and each Person responsible for the
preparation, execution or filing of any report required to be filed with the Commission with
respect to such Securitization Transaction, or for execution of a certification pursuant to Rule
13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such Securitization Transaction,
for all costs reasonably incurred by each such party in order to obtain the information, report,
certification, accountants’ letter or other material not delivered as required by Seller, any
Subservicer, any Subcontractor or any Third-Party Originator.

     (b)(i) Any failure by Seller to deliver any information, report, certification, accountants’
letter or other material when and as required under this Section 11A, or any breach by Seller of a
representation or warranty set forth in Section 11A.02(a) or in a writing furnished pursuant to
Section 11A.02(b) and made as of a date prior to the closing date of the related Securitization
Transaction, to the extent that such breach is not cured by such closing date, or any breach by the
Seller of a representation or warranty in a writing furnished pursuant to Section 11.02(b) to the
extent made as of a date subsequent to such closing date, shall, except as provided in (ii) of this
paragraph, immediately and automatically, without notice or grace period, constitute an Event of
Default with respect to Seller under this Agreement and any applicable Reconstitution Agreement
related thereto, and shall entitle Purchaser ,or any Depositor to terminate the rights and
obligations of Seller as servicer under this Agreement and/or any applicable Reconstitution
Agreement related thereto without payment (notwithstanding anything in this Agreement or any
applicable Reconstitution Agreement related thereto to the contrary) of any compensation to Seller
(and if Seller is servicing any of the Mortgage Loans in a Securitization Transaction, appoint a
successor servicer reasonably acceptable to any Master Servicer for such Securitization
Transaction); provided that to the extent that any provision of this Agreement and/or any
applicable Reconstitution Agreement related thereto expressly provides for the survival of certain
rights or obligations following termination of Seller as servicer, such provision shall be given
effect.

          (ii) Any failure by Seller to deliver any information, report, certification or accountants’
letter when and as required under Section 11A.04 and 11A.05, including any failure by Seller to
identify pursuant to Section 11A.06(b) any Subcontractor “participating in the

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servicing function”
within the meaning of Item 1122 of Regulation AB, which continues unremedied for ten calendar days
after the date on which such information, report, certification or accountants’ letter was required
to be delivered shall constitute an Event of Default with respect to Seller under this Agreement
and any applicable Reconstitution Agreement related thereto, and shall entitle Purchaser, any
Master Servicer or any Depositor, as applicable, to terminate the rights and obligations of Seller
as servicer under this Agreement and/or any applicable Reconstitution Agreement related thereto
without payment of a termination fee as provided in Section 14.02 (notwithstanding anything in this
Agreement or any applicable Reconstitution Agreement related thereto to the contrary); provided
that to the extent that any provision of this Agreement and/or any applicable Reconstitution
Agreement related thereto expressly provides for the survival of certain rights or obligations
following termination of Seller as servicer, such provision shall be given effect. Neither
Purchaser nor any agent of Purchaser shall be entitled to terminate the rights and obligations of
Seller pursuant to this subparagraph (b)(ii) if a failure of Seller to identify a Subcontractor
“participating in the servicing function” within the meaning of Item 1122 of Regulation AB was
attributable solely to the role or functions of such Subcontractor with respect to mortgage loans
other than the Mortgage Loans.

     (iii) Seller shall promptly reimburse Purchaser or (any designee of a Purchaser, such as a
Master Servicer) and any Depositor, as applicable, for all reasonable expenses incurred by
Purchaser (or such designee) or such Depositor, as such are incurred, in connection with the
termination of Seller as servicer and the transfer of servicing of the Mortgage Loans to a
successor servicer. The provisions of this paragraph shall not limit whatever rights the parties
may have under other provisions of this Agreement and/or any applicable Reconstitution Agreement
related thereto or otherwise, whether in equity or at law, such as an action for damages, specific
performance or injunctive relief.

     Section 11A.08. Third Party Beneficiary.

     For purposes of this Section 11A, each Master Servicer shall be considered a third-party
beneficiary of this Agreement, entitled to all the rights and benefits as if it were a direct party
to this Agreement.

     SECTION 12. Seller.

     Section 12.01. Indemnification; Third Party Claims.

     Seller agrees to indemnify and hold harmless Purchaser against any and all actual losses,
damages, actions, or liabilities, including reasonable attorneys fees, which Purchaser sustains,
which are caused by the failure of Seller to perform its duties, obligations and covenants in
material compliance with the terms of this Agreement, excluding, however, any and all consequential
and punitive damages.

     If Purchaser seeks indemnification under this Section 12.01, it must promptly give Seller
notice of any legal action or potential claim. However, delay or failure by Purchaser to provide
such notice shall not release Seller from any indemnity obligations, except and only to the extent
that Seller shows that such delay or failure materially prejudiced the defense of such action or

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increased the amount of such claim. Seller shall be responsible to conduct such defense through
counsel reasonably satisfactory to Purchaser; provided, however, that Seller is permitted to
control fully the defense of any such claim and to settle any such claim subject to Purchaser’s
approval, which approval shall not be unreasonably withheld; provided further, that Purchaser shall
have the right to retain counsel to represent it at its expense in connection with any such claim.
If Seller fails to assume the defense of an action within twenty (20) days after receiving notice,
then Seller shall be bound by any determination made in the action or by any compromise or
settlement Purchaser may effect. Without the consent of the other party, neither Purchaser nor
Seller shall agree to any settlement if the matter involves any possible criminal action or
proceeding, or contains a stipulation to, or admission or acknowledgment of, any wrongdoing (in
tort or otherwise) on the part of the other party, and the settlement of any such matter without
the prior written consent of the other party shall be void and of no effect with respect to that
other party. Purchaser agrees to use reasonable efforts to mitigate any claims tendered to Seller.
To the extent of any amounts paid by Seller pursuant to the indemnification provided above,
Purchaser shall assign to Seller all of its claims for recovery against third parties for any
indemnification provided by Seller, whether such claims arise pursuant to insurance coverage,
contribution, subrogation or otherwise. The provisions of this Section 12.01 shall survive
termination of this Agreement.

     Section 12.02. Merger or Consolidation of Seller.

     Seller will keep in full effect its existence, rights and franchises, and will obtain and
preserve its qualification to do business in each jurisdiction in which such qualification is or
shall be necessary to protect the validity and enforceability of this Agreement or any of the
Mortgage Loans and to perform its duties under this Agreement.

     Any Person into which Seller may be merged or consolidated, or any corporation resulting from
any merger, conversion or consolidation to which Seller shall be a party, or any Person succeeding
to substantially all of the business of Seller (whether or not related to loan servicing), shall be
the successor of Seller hereunder, without the execution or filing of any paper or any further act
on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

     Section 12.03. Limitation on Liability of Seller and Others.

     The duties and obligations of Seller shall be determined solely by the express provisions of
this Agreement; Seller shall not be liable except for the performance of such duties and
obligations as are specifically set forth in this Agreement; and no implied warranties, covenants
or obligations shall be read into this Agreement against Seller. Neither Seller nor any of the
directors, officers, employees or agents of Seller shall be under any liability to Purchaser for
taking or for refraining from taking any action in accordance with Customary Servicing Procedures
and otherwise in good faith pursuant to this Agreement or for errors in judgment; provided,
however, that this provision shall not protect Seller against any liability resulting from any
material breach of any representation or warranty made herein; and, provided further, that this
provision shall not protect Seller against any liability that would otherwise be imposed by reason
of the willful misfeasance, bad faith or gross negligence in the performance of duties or by reason
of reckless disregard of its obligations or duties hereunder. Seller and any director, officer,
employee or agent of Seller may rely on any document of any kind which it in good faith

59

 

reasonably
believes to be genuine and to have been adopted or signed by the proper authorities respecting any
matters arising hereunder. Subject to the terms of Section 12.01, Seller shall have no obligation
to appear with respect to, prosecute or defend any legal action which is not incidental to Seller’s
duty to service the Mortgage Loans in accordance with this Agreement.

     Section 12.04. Seller Not to Resign.

     Except as provided in Section 12.02, Seller shall not assign this Agreement nor resign from
the obligations and duties hereby imposed on it except by mutual consent of Seller and Purchaser or
upon the determination that Seller’s duties hereunder are no longer permissible under applicable
law and such incapacity cannot be cured by Seller. Any such determination permitting the
unilateral resignation of Seller shall be evidenced by an opinion of counsel to such effect
delivered to Purchaser, which opinion of counsel shall be in form and substance acceptable to
Purchaser. Except as provided in Section 12.02, no such resignation or assignment shall become
effective until a successor has assumed Seller’s responsibilities and obligations hereunder in
accordance with Section 14.03.

     SECTION 13. Default.

     Section 13.01. Events of Default.

     In case one or more of the following Events of Default by Seller shall occur and be
continuing:

          (a) any failure by Seller to remit to Purchaser any payment required to be made under the
terms of this Agreement which continues unremedied for a period of five (5) Business Days after the
date upon which written notice of such failure, requiring the same to be remedied, shall have been
given to Seller by Purchaser; or

          (b) failure by Seller to duly observe or perform, in any material respect, any other
covenants, obligations or agreements of Seller as set forth in this Agreement which failure
continues unremedied for a period of ninety (90) days after the date on which written notice of
such failure, requiring the same to be remedied, shall have been given to Seller by Purchaser; or

          (c) a decree or order of a court or agency or supervisory authority having jurisdiction for
the appointment of a conservator or receiver or liquidator in any insolvency, bankruptcy,
readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the
winding-up or liquidation of its affairs, shall have been entered against Seller and such decree or
order shall have remained in force, undischarged or unstayed for a period of sixty (60) days; or

          (d) Seller shall consent to the appointment of a conservator or receiver or liquidator in any
insolvency, bankruptcy, readjustment of debt, marshalling of assets and liabilities or similar
proceedings of or relating to Seller or relating to all or substantially all of Seller’s property;
or

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          (e) Seller shall admit in writing its inability to pay its debts as they become due, file a
petition to take advantage of any applicable insolvency or reorganization statute, make an
assignment for the benefit of its creditors, or voluntarily suspend payment of its obligations;

then, and in each and every such case, so long as an Event of Default shall not have been remedied,
Purchaser, by notice in writing to Seller, may, in addition to whatever rights Purchaser may have
at law or equity, including damages, injunctive relief and specific performance, commence
termination of all the rights and obligations of Seller under this Agreement and in and to the
Mortgage Loans and the proceeds thereof. Upon receipt by Seller of such written notice from
Purchaser stating that it intends to terminate Seller as a result of such Event of Default, all
authority and power of Seller under this Agreement, whether with respect to the Mortgage Loans or
otherwise, shall pass to and be vested in the successor appointed pursuant to Section 14.03. Upon
written request from Purchaser, Seller shall prepare, execute and deliver to a successor any and
all documents and other instruments, place in such successor’s possession all Mortgage Files and do
or cause to be done all other acts or things necessary or appropriate to effect the purposes of
such notice of termination, including, but not limited to, the transfer and endorsement or
assignment of the Mortgage Loans and related documents to the successor at Seller’s expense.
Seller agrees to cooperate with Purchaser and such successor in effecting the termination of
Seller’s responsibilities and rights hereunder, including, without limitation, the transfer to such
successor for administration by it of all amounts which shall at the time be credited by Seller to
the Custodial Account or Escrow Account or thereafter received with respect to the Mortgage Loans.

     Section 13.02. Waiver of Defaults.

     Purchaser may waive any default by Seller in the performance of its obligations hereunder and
its consequences. Upon any waiver of a past default, such default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been remedied for every purpose of this
Agreement. No such waiver shall extend to any subsequent or other default or impair any right
consequent thereto except to the extent expressly so waived.

     SECTION 14.  Termination.

     Section 14.01.  Termination.

     Unless terminated with respect to all or a portion of the Mortgage Loans on an earlier date
pursuant to Section 13, the respective obligations and responsibilities of Seller, as Seller, shall
terminate upon the distribution to Purchaser of the final payment or disposition with respect to
the last Mortgage Loan (or advances of same by Seller) and the disposition of all property acquired
upon foreclosure or deed in lieu of foreclosure with respect to the last Mortgage Loan and the
remittance of all funds due hereunder. Upon written request from Purchaser in connection with any
such termination, Seller shall prepare, execute and deliver, any and all reasonable and necessary
documents and other instruments, place in Purchaser’s possession all Mortgage Files, and do or
accomplish all other acts or things necessary or appropriate to effect the purposes of such
termination, whether to complete the transfer and endorsement or assignment of the Mortgage Loans
and related documents, or otherwise, at Purchaser’s sole expense. Seller agrees to cooperate with
Purchaser and such successor in effecting the termination of Seller’s responsibilities and rights
hereunder as Seller, including, without

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limitation, the transfer to such successor for
administration by it of all cash amounts which shall at the time be credited by Seller to the
Custodial Account or Escrow Account or thereafter received with respect to the Mortgage Loans.

     Section 14.02. Termination of Seller Without Cause.

     Notwithstanding anything herein to the contrary, Purchaser may terminate the obligations and
responsibilities of Seller, without cause, upon payment to Seller of a termination fee equal to
three percent (3%) of the aggregate outstanding principal balance of the Mortgage Loans as of the
date of such termination. In addition, Purchaser shall reimburse Seller for any and all
out-of-pocket costs incurred by Seller in connection with such termination. The termination fee
provided for in this Section 14.02 shall be paid by Purchaser within ten (10) Business Days of any
such termination without cause by Purchaser, and Purchaser shall reimburse Seller for its
out-of-pocket costs resulting from such termination within ten (10) Business Days following
Purchaser’s receipt of an invoice for such costs.

     Section 14.03. Successors to Seller.

     Prior to the termination of Seller’s responsibilities and duties under this Agreement pursuant
to Sections 12.04, 13.01, 14.01 or 14.02, Purchaser shall (a) succeed to and assume all of Seller’s
servicing responsibilities, rights, duties and obligations under this Agreement or (b) within one
hundred eighty (180) days appoint a successor which shall succeed to all rights and assume all of
the responsibilities, duties and liabilities of Seller under this Agreement upon such termination.
In connection with such appointment and assumption, Purchaser may make such arrangements for the
compensation of such successor out of payments on Mortgage Loans as it
and such successor shall agree. If Seller’s duties, responsibilities and liabilities under this
Agreement shall be terminated pursuant to the aforementioned Sections, Seller shall discharge such
duties and responsibilities during the period from the date it acquires knowledge of such
termination until the effective date thereof with the same degree of diligence which it is
obligated to exercise under this Agreement. The resignation or removal of Seller pursuant to the
aforementioned Sections shall not become effective until the earlier of (i) appointment of a
successor pursuant to this Section, or (ii) expiration of a period of one hundred eighty (180) days
after receipt by Seller from Purchaser or Purchaser’s agent of a notice of termination or receipt
by Purchaser or Purchaser’s agent of a notice of resignation. Prior to the transfer of servicing
to a successor servicer, Purchaser or Purchaser’s designee shall reimburse Seller for any and all
Servicing Advances and any other amounts due and owning pursuant to this Agreement.

     Any successor to Seller appointed as servicer as provided herein shall execute, acknowledge
and deliver to Seller and to Purchaser an instrument accepting such appointment, whereupon such
successor shall become fully vested with all the rights, powers, duties, responsibilities,
obligations and liabilities of Seller, with like effect as if originally named as a party to this
Agreement. Any termination or resignation of Seller or this Agreement pursuant to Sections 12.04,
13.01 or 14.01 shall not affect any claims that Purchaser may have against Seller under this
Agreement which arose prior to any such termination or resignation.

     Seller shall do such things as may reasonably be required to more fully and definitively vest
in the successor all such rights, powers, duties, responsibilities, obligations and liabilities of
Seller.

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     Upon a successor’s acceptance of appointment as such, Purchaser shall immediately notify
Seller of such appointment.

     SECTION 15. Notices. All demands, notices and communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed, by registered or certified mail,
postage prepaid, return receipt requested, or, if by other means, when received by the other party
at the address as follows:

	 	(a)	 	if to Seller:

ABN AMRO Mortgage Group, Inc.

7159 Corklan Drive

Jacksonville, FL 32258

Attn: Raymond Barbone

Phone: 904/288-5211

Fax: 904/288-5089

With a copy to:

LaSalle Bank Corporation

Legal Department

2600 West Big Beaver Rd.

Troy, Michigan 48084

Attn: Thomas E. Reiss

Phone: 248/637-2571

Fax: 248/637-2768

	 	(b)	 	if to Purchaser:
	 
	 	 	 	(c)

RWT Holdings, Inc.

One Belvedere Place, Suite 310

Mill Valley, CA 94941

Attn: Laura Jeffery

Phone: (415) 380-2337

Fax: (415) 381-1773

or such other address as may hereafter be furnished to the other party by like notice. Any such
demand, notice or communication hereunder shall be deemed to have been received on the date
delivered to or received at the premises of the addressee (as evidenced, in the case of registered
or certified mail, by the date noted on the return receipt).

     SECTION 16. Severability Clause. Any part, provision, representation or warranty of
this Agreement which is prohibited or which is held to be void or unenforceable shall be
ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof. Any part, provision, representation or warranty of this Agreement
which is prohibited or unenforceable or is held to be void or unenforceable in any jurisdiction
shall be ineffective, as to such jurisdiction, to the extent of such prohibition or
unenforceability

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without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction as to any Mortgage Loan shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted by applicable law,
the parties hereto waive any provision of law which prohibits or renders void or unenforceable any
provision hereof. If the invalidity of any part, provision, representation or warranty of this
Agreement shall deprive any party of the economic benefit intended to be conferred by this
Agreement, the parties shall negotiate, in good-faith, to develop a structure the economic effect
of which is nearly as possible the same as the economic effect of this Agreement without regard to
such invalidity.

     SECTION 17. No Partnership. Nothing herein contained shall be deemed or construed to
create a co-partnership or joint venture between the parties hereto and the services of Seller
shall be rendered as an independent contractor and not as agent for Purchaser.

     SECTION 18. Counterparts and Facsimile Transmission. This Agreement may be executed
simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original,
and all such counterparts shall constitute one and the same instrument. This Agreement may be
delivered via facsimile transmission of executed counterparts, and each executed counterpart so
delivered shall be deemed an original.

     SECTION 19. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE UNITED STATES OF AMERICA, AND, TO THE EXTENT NOT PREEMPTED
THEREBY, THE LAWS OF THE STATE OF MICHIGAN, WITHOUT REGARD TO THE CHOICE OF LAW RULES OF MICHIGAN
OR ANY OTHER JURISDICTION.

     SECTION 20. Intention of the Parties. It is the intention of the parties that
Purchaser is purchasing, and Seller is selling, the Mortgage Loans and not a debt instrument of
Seller or another security. Accordingly, the parties hereto each intend to treat the transaction
for federal income tax purposes as a sale by Seller, and a purchase by Purchaser, of the Mortgage
Loans. Purchaser shall have the right to review the Mortgage Loans and the related Mortgage Files
to determine the characteristics of the Mortgage Loans which shall affect the federal income tax
consequences of owning the Mortgage Loans and Seller shall cooperate with all reasonable requests
made by Purchaser in the course of such review.

     It is not the intention of the parties that such conveyances be deemed a pledge thereof.
However, if, notwithstanding the intent of the parties, such assets are held to be the property of
Seller or if for any other reason this Agreement is held or deemed to create a security interest in
either such assets, then (i) this Agreement shall be deemed to be a security agreement within the
meaning of the Uniform Commercial Code of the State of Michigan and (ii) the conveyances provided
for in this Agreement shall be deemed to be an assignment and a grant by Seller to Purchaser of a
security interest in all of the assets transferred, whether now owned or hereafter acquired.

     Purchaser agrees that, when interpreting this Agreement or any other document delivered by
Purchaser to Seller, there shall be no presumption against Seller on account of the fact that
Seller is the party causing the drafting of this Agreement.

64

 

     SECTION 21. Successors and Assigns. This Agreement shall bind and inure to the
benefit of and be enforceable by Purchaser, Seller, and the respective successors and assigns of
Purchaser and Seller.

     SECTION 22. Waivers. No term or provision of this Agreement may be waived or modified
unless such waiver or modification is in writing and signed by the party against whom such waiver
or modification is sought to be enforced.

     SECTION 23. Exhibits. The Exhibits to this Agreement are hereby incorporated and made
a part hereof and are an integral part of this Agreement.

     SECTION 24. General Interpretive Principles. For purposes of this Agreement, except
as otherwise expressly provided or unless the context otherwise requires:

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

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

          (c) references herein to “Sections,” “Paragraphs” and other subdivisions without reference to
a document are to designated sections, paragraphs and other subdivisions of this Agreement;

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

          (e) the term “include” or “including” shall mean without limitation by reason of enumeration;
and

          (f) the terms “state law” or “local law” or other references to state law or local laws shall
mean such laws except as they are preempted by federal law or federal regulations.

     SECTION 25. Reproduction of Documents. This Agreement and all documents relating
thereto, including, without limitation, (a) consents, waivers and modifications which may hereafter
be executed, (b) documents received by any party at the closing, and (c) financial statements,
certificates and other information previously or hereafter furnished, may be reproduced by any
photographic, photostatic, microfilm, micro-card, miniature photographic or other similar process.
The parties hereto agree that any such reproduction shall be admissible in evidence as the original
itself in any judicial or administrative proceeding, whether or not the original is in existence
and whether or not such reproduction was made by a party hereto in the regular course of business,
and that any enlargement, facsimile or further reproduction of such reproduction shall likewise be
admissible in evidence.

     SECTION 26. Amendment. This Agreement may be amended from time to time by Purchaser
and Seller by written agreement signed by the parties hereto.

65

 

SECTION 27. Confidentiality and Information Security. 

     (a) Confidentiality of Agreement. Purchaser and Seller shall employ proper procedures and
standards designed to maintain the confidential nature of the terms of this Agreement, except to
the extent: (a) the disclosure thereof is reasonably believed by such party to be required in
connection with regulatory requirements or other legal requirements relating to its affairs; (b)
disclosed to any one or more of such party’s employees, officers, directors, agents, attorneys or
accountants who would have access to the contents of this Agreement and such data and information
in the normal course of the performance of such person’s duties for such party, to the extent such
party has procedures in effect to inform such person of the confidential nature thereof; (c)
disclosed in a prospectus, prospectus supplement or private placement memorandum relating to a
securitization of the Mortgage Loans by Purchaser (or an affiliate assignee thereof) or to any
Person in connection with the resale or proposed resale of all or a portion of the Mortgage Loans
by such party in accordance with the terms of this Agreement; or (d) reasonably believed by such
party to be necessary for the enforcement of such party’s rights under this Agreement.

     (b) Confidentiality of Information. Each party represents and warrants to the other that it
and its directors, officers, employees and agents, including subcontractors, shall safeguard and
hold as confidential all Confidential Information disclosed to it by the other party, and shall use
such Confidential Information of the other party solely for the purposes contemplated by this
Agreement and shall not disclose such information to persons other than its directors, officers,
employees and agents having a need to know such Confidential Information of the other party in
order to perform its corporate obligations, the obligations under this Agreement, to enforce this
Agreement, or as otherwise required by law. If a party is required by law to disclose the
Confidential Information of the other party (such as pursuant to subpoena, discovery, search
warrant, order of a court or government agency or similar process), the party, to the extent
allowed by law, shall promptly notify the other party of the receipt of such legal process, and
cooperate with the other party should that other party seek to quash the process or obtain a
protective order or other appropriate relief to protect its Confidential Information. The term
“Confidential Information” shall mean all proprietary information of a party, all information of a
party marked restricted or confidential, all information of a party regarding its customers and
prospective customers (including the non-public personal information of individual consumers),
account information, products and services, financial, technical, procurement or marketing
information, business or marketing strategies, operating and security policies and procedures,
trade secrets and similar proprietary information, in whatever form, which could reasonably be
expected to be confidential information. Confidential Information does not, however, include
information (i) which was rightfully in possession of or known to the receiving party without any
obligation of confidentiality prior to receiving it from the disclosing party; (ii) which is, or
subsequently becomes, legally and publicly available without breach of this Agreement; (iii) which
is rightfully obtained by the receiving party from a source other than the disclosing party without
any obligation of confidentiality; (iv) which is independently developed by a party without use of
the other party’s confidential information; (v) which is disclosed by the receiving party with the
written permission of the disclosing party; and (vi) which is disclosed pursuant to an order issued
by a court or government agency of competent jurisdiction or a subpoena. Confidential Information
will be used by the receiving party solely for the purposes for which the Confidential Information
is provided. Disclosure of Confidential Information to a party’s

66

 

outside counsel and accountants
and its regulatory agencies in the course of their professional duties with respect to a party
shall be deemed not to be a breach of the confidentiality provisions of this Agreement.

     (c) Information Security. Further, in accordance with the requirements of the Interagency
Guidelines Establishing Information Security Standards, 12 C.F.R., Part 30, Appendix B,
promulgated under section 39 of the Federal Deposit Insurance Act, 12 U.S.C §1831p-1, or under
section 93a of the National Bank Act, 12 U.S.C. §93a and sections 501 and 505(b) of the
Gramm-Leach-Bliley Act (the “Interagency Guidelines”), each party agrees, as applicable, to
implement appropriate information security measures, including disaster recovery measures, designed
to meet the objectives of the Interagency Guidelines, and that the party providing non-public
personal information of individual consumers (“Customer Information) has the right to review
audits, summaries of test results, or other equivalent evaluations of the information security
measures of the party receiving the Customer Information, or to conduct audits of the same, in
order to insure that the party receiving the Customer Information is meeting the objectives of the
Interagency Guidelines. All of the provisions of this Section 27 shall survive the termination of
this Agreement.

     SECTION 28. Entire Agreement. This Agreement constitutes the entire agreement and
understanding relating to the subject matter hereof between the parties hereto and any prior oral
or written agreements between them shall be deemed to have merged herewith.

     SECTION 29. Further Information and Agreements. Upon reasonable requests of
Purchaser, Seller shall provide Purchaser with (i) evidence of the authorization of the person
signing any certification or statement, (ii) copies or other evidence of Fidelity Bond and errors
and omission insurance policies, and (iii) such other information related, including financial
information, as may be necessary or appropriate to effectuate the purposes of this Agreement.
Seller and Purchaser each agree to execute and deliver to the other such reasonable and
appropriate additional documents, instruments or agreements as may be necessary or appropriate to
effectuate the purposes of this Agreement.

(CONTINUED ON FOLLOWING PAGE)

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     SECTION 30. JURY WAIVER. EACH PARTY ACKNOWLEDGES THAT THE RIGHT OF TRIAL BY JURY IS
A CONSTITUTIONAL RIGHT, BUT ONE THAT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING (OR HAVING HAD
THE OPPORTUNITY TO CONSULT) WITH LEGAL COUNSEL OF ITS CHOICE, KNOWINGLY AND VOLUNTARILY, FOR ITS
OWN BENEFIT, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION IN ANY WAY RELATED TO
THIS AGREEMENT, PERFORMANCE THEREUNDER, AND/OR ENFORCEMENT THEREOF.

     Purchaser and Seller have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	 	RWT Holdings, Inc.
	 	 	  as Purchaser
	 
	 	 	 	 
	 	 	/s/ RWT HOLDINGS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	ABN AMRO Mortgage Group, Inc.,
	 	 	  as Seller
	 
	 	 	 	 
	 	 	/s/ ABN AMRO MORTGAGE GROUP, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

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EXHIBIT 1

MORTGAGE LOAN DOCUMENTS

     With respect to each Mortgage Loan, the Mortgage Loan Documents shall consist of the
following:

	 	(a)	 	the original Mortgage Note bearing all intervening endorsements and signed in
the name of Seller by an officer thereof, or if the Mortgage Note has been lost or
destroyed, a lost note affidavit;
	 
	 	(b)	 	the original Assignment of Mortgage;
	 
	 	(c)	 	the originals of all assumption, modification, consolidation or extension
agreements, if any, with evidence of recording thereon; or if such documents have not
been returned from the applicable recording office or have been lost, a true and
complete copy of the original;
	 
	 	(d)	 	the original recorded Mortgage, or imaged copy of the recorded Mortgage, or if
any such Mortgage has not been returned from the applicable recording office, a true
and complete copy of the original Mortgage; provided, however, that such original
recorded document or imaged copy thereof shall be delivered to Purchaser no later than
one (1) year following the related Closing Date, unless there has been a delay at the
applicable recording office;
	 
	 	(e)	 	the originals of all intervening assignments of mortgage, or imaged copies of
the recorded documents, with evidence of recording thereon, or if any such intervening
assignment of mortgage has not been returned from the applicable recording office or
has been lost or if such public recording office retains the original recorded
assignments of mortgage, a true and complete copy of the original intervening
assignment of mortgage; and
	 
	 	(f)	 	if required, the original mortgagee title insurance policy or if not yet
issued, a copy of the title commitment with proof of payment, or imaged copies thereof.

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EXHIBIT 2

CONTENTS OF EACH MORTGAGE FILE

     With respect to each Mortgage Loan, the Mortgage File, which may be an image thereof, shall
include each of the following items, unless otherwise disclosed to Purchaser on the data tape:

	 	(a)	 	Mortgage Loan application.
	 
	 	(b)	 	Mortgage Loan closing statement.
	 
	 	(c)	 	Verification of employment and income, if required.
	 
	 	(d)	 	Verification of acceptable evidence of source and amount of down payment, if
required.
	 
	 	(e)	 	Credit report on Mortgagor, in a form acceptable to the Agency.
	 
	 	(f)	 	Residential collateral assessment report in a form acceptable to the Agency, if
required.
	 
	 	(g)	 	Survey of the Mortgaged Property, unless a survey is not required.
	 
	 	(h)	 	Copies of all required disclosure statements.
	 
	 	(i)	 	Sales contract, if applicable and required.
	 
	 	(j)	 	The Primary Mortgage Insurance Policy or certificate of insurance or electronic
notation of the existence of such policy, where required.
	 
	 	(k)	 	Evidence of electronic notation of the hazard insurance policy, and, if
required by law, evidence of the flood insurance policy.

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EXHIBIT 3

SELLER’S OFFICER’S CERTIFICATE

I, ___, hereby certify that I am a duly elected ___Vice
President of ABN AMRO Mortgage Group, Inc., a Delaware corporation (the “Company”), and further
certify on behalf of the Company as follows:

	1.	 	Attached hereto as Exhibit A is a true and complete copy of the Certificate of Incorporation
of the Company, as amended, as filed with the Secretary of State of the State of Delaware.
Such Certificate of Incorporation has not been amended and is in full force and effect on the
date hereof.
	 
	2.	 	Attached hereto as Exhibit B is a true and correct copy of the Certificate of the Secretary
of State of the State of Delaware, dated ___, 2006, as to the good standing of the
Company.
	 
	3.	 	Attached hereto as Exhibit C is a true and complete copy of the Amended and Restated By-Laws
of the Company. Such By-Laws have not been amended or revoked and are in full force and
effect on the date hereof.
	 
	4.	 	Section 11.1 of the Amended and Restated By-Laws, entitled “Execution of Instruments,”
authorizes any Vice President, First Vice President, or Senior Vice President of the Company,
among others, to execute and deliver documents in connection with the sale, assignment,
transfer, conveyance, management or handling in any way of any property held or controlled by
the Company.
	 
	5.	 	Each person who, as an officer or attorney-in-fact of the Company, signed (a) the Mortgage
Loan Sale and Servicing Agreement (the “Agreement”) dated as of___, 2006, by and
between the Company and ___, a ___corporation, and (b) any other
document delivered prior hereto or on the date hereof in connection with the sale and
servicing of Mortgage Loans in accordance with the Agreement was, at the respective times of
such signing and delivery, and is as of the date hereof, duly elected or appointed, qualified
and acting as such officer or attorney-in-fact.
	 
	6.	 	Set forth below is the name, title and specimen signature of the person who has been
duly elected and qualified to serve in the capacity set forth opposite his or her name:

	 	 	 	 	 
	Name

	 	Title
	 	Signature

                     Vice President                                                
   

	7.	 	The signature of each such person appearing on such documents is his or her genuine
signature. All capitalized terms used herein and not otherwise defined shall have the

71

 

     meanings assigned to them in the Agreement.

IN WITNESS WHEREOF, I have hereunto signed my name.

	 	 	 	 	 
	Dated:                     , 2006	 	                    ABN AMRO MORTGAGE GROUP, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	,
	 
	 	 	 	 
	 

	 	 	 	                     Vice President

     I,                                         , Assistant Secretary of ABN AMRO Mortgage Group, Inc., hereby
certify that                                          is a duly elected, qualified and acting ___Vice President
of ABN AMRO Mortgage Group, Inc., that the signature appearing above is his genuine signature, and
that pursuant to By-Law 11.1 of the Amended and Restated By-Laws of the Company attached hereto as
Exhibit C he is authorized to execute and deliver the Agreement.

     IN WITNESS WHEREOF, I have hereunto signed my name.

	 	 	 	 	 
	Dated as of ___________, 2006	 	ABN AMRO MORTGAGE GROUP, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Assistant Secretary

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EXHIBIT 4

OPINION OF COUNSEL TO THE SELLER

(Date)

RWT Holdings, Inc.

One Belvedere Place, Suite 310

Mill Valley, CA 94941

Attention: Laura Jeffery

	 	 	 	Re: Master Mortgage Loan Sale and Servicing Agreement, dated as of
[ ] 1, 200[ ]

Ladies and Gentlemen:

     I am special counsel to ABN AMRO Mortgage Group, Inc., a Delaware corporation (the “Company”),
with respect to certain matters in connection with the sale and servicing by the Company of the
Mortgage Loans pursuant to that certain Master Mortgage Loan Sale and Servicing Agreement, dated as
of July 1, 2006 (the “Agreement”), by and between the Company and RWT Holdings, Inc., a Delaware
corporation, (the “Purchaser”). Capitalized terms not otherwise defined herein have the meanings
set forth in the Agreement.

     In rendering the opinions set forth below, I have examined and relied upon originals or
copies, certified or otherwise identified to my satisfaction, of the certificate of incorporation
and by-laws of the Company, the Agreement and such corporate records, agreements or other
instruments of the Company, and such certificates, records and other documents, agreements and
instruments, as I have deemed necessary and proper as the basis for my opinions. In connection
with such examination, I have assumed the genuineness of all signatures, the authenticity of all
documents, agreements and instruments submitted to me as originals, the conformity to original
documents, agreements and instruments of all documents, agreements and instruments submitted to me
as copies or specimens, the authenticity of the originals of such documents, agreements and
instruments submitted to us as copies or specimens, the conformity to executed original documents
of all documents submitted to me in draft and the accuracy of the matters set forth in the
documents we reviewed. I have also assumed that all documents, agreements and instruments have
been duly authorized, executed and delivered by all parties thereto. As to any facts material to
such opinions that I did not independently establish or verify, I have relied upon statements and
representations of officers and other representatives of the Company as I have deemed necessary and
proper as the basis for my opinions, including, among other things, the representations and
warranties in the Agreement.

     I am a member of the State Bar of Michigan and my opinions herein are limited to matters
governed by the laws of Michigan and the federal laws of the United States of America. I have not
made any examination of the laws of any other jurisdiction as to the extent or manner in which such
laws may govern or affect the Agreement or the transactions contemplated thereby.

Subject to the foregoing, it is my opinion that:

73

 

          1. The Company is a corporation duly organized, validly existing and in good standing under
the laws of the state of Delaware and is authorized to service and administer the Mortgage Loans in
the states where the Mortgaged Properties are located.

          2. The execution, delivery and performance by the Company and the transactions contemplated
thereby are within its corporate power and have been duly authorized by all necessary corporate
action on the part of the Company.

          3. The Agreement is a legal, valid and binding agreement of the Company, enforceable in
accordance with its terms, subject to applicable bankruptcy, reorganization, insolvency, moratorium
and other similar laws of general application affecting the rights of creditors and subject to the
rules of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).

          4. The execution, delivery and performance by the Company of the Agreement and the
transactions contemplated thereby: (a) do not contravene or conflict with its certificate of
incorporation or by-laws or any law or regulation to which the Company is subject; or (b) to the
best of my knowledge (without independent investigation), neither result in the creation or
imposition of any lien on the property or assets of the Company; nor require any action by or in
respect of, or filing with, any governmental body, agency or official.

          5. There is no action, suit, proceeding or, investigation pending or threatened against the
Company which, in my judgment, either in any instance or in the aggregate, will likely result in
any material adverse change in the business, operations, financial conditions, properties or assets
of the Company or in any material impairment of the right or ability of the Company to carry on its
business substantially as now conducted or in any material liability on the part of the Company or
which would draw into question the validity of the Agreement or of any action taken or to be taken
in connection with the transactions contemplated thereby, or which would be likely to impair
materially the ability of the Company to perform under the terms of the Agreement.

     Except as expressly provided herein, this opinion is being furnished solely to the addressee
hereof solely for their benefit in connection with the transactions contemplated in the Agreement,
and it is not to be used, circulated, quoted or otherwise referred to, or relied upon by anyone
other than such addressee, or used for any purpose without my express written consent. Further, I
assume no obligation to revise or supplement this opinion should the present laws or regulations be
changed by legislative or administrative action, judicial decision or otherwise.

	 	 	 	 	 
	 	 	Sincerely,

ABN AMRO Mortgage Group, Inc.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Thomas E. Reiss
	 

	 	Its:
	 	Special Counsel

TER/-

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EXHIBIT 5

ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

(for Whole Loan Transfers)

between

 

as Assignee,

 

as Assignor

and

ABN AMRO Mortgage Group, Inc.,

as the Company

Dated                     

75

 

ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

(for Whole Loan Transfers)

     This Assignment, Assumption and Recognition Agreement (the “Agreement”) is made and entered
into on                     , by                                         , having an address at
                                                             (“Assignor”),
                                                             , having an address at
                                                             (“Assignee”) and ABN AMRO Mortgage Group,
Inc., having an address at 2600 West Big Beaver Road, Troy, Michigan 48084 (“Company”).

     In consideration of the mutual promises and agreements contained herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

     1. Assignment and Assumption. Except as expressly provided for herein, and upon
payment by Assignee to Assignor of the amounts referenced in that certain trade confirmation dated
as of ___(the “Trade Confirmation”) and duly executed by Assignor and Assignee
(such amounts, the “Purchase Price”), and upon payment to Company of any Reconstitution Fee
required pursuant to the Sale Agreement defined below, Assignor hereby grants, transfers and
assigns to Assignee (a) all of its right, title and interest in and to each of the mortgage loans
identified in Exhibit A attached hereto, excluding the servicing rights related thereto
(“Mortgage Loans”) and (b) with respect to the Mortgage Loans, all of its right, title and interest
as “Purchaser” in that certain Master Mortgage Loan Sale and Servicing Agreement dated
___, and duly executed by the Company and Assignor, a copy of which is attached hereto
as Exhibit B (the “Sale Agreement”). Notwithstanding anything to the contrary contained
herein, Assignor is not assigning to Assignee any of the servicing rights related to the Mortgage
Loans.

     Except as is otherwise expressly provided herein, Assignor makes no representations,
warranties or covenants to Assignee and Assignee acknowledges that Assignor has no obligations to
Assignee under the terms of the Sale Agreement, or otherwise relating to the transaction
contemplated herein, including but not limited to, any obligation to repurchase any of the Mortgage
Loans or to indemnify Assignee.

     2. Payment of Purchase Price. Assignee shall pay the Purchase Price to Assignor on or
prior to the date hereof by wire transfer of immediately available funds to the account designated
below:

ABA -

ACCT -

REF –

     3. Recognition of Assignee by the Company. From and after the date hereof, and on the
condition that Assignor shall have paid any Reconstitution Fee required pursuant to the Sale

76

 

Agreement, the Company shall recognize Assignee as the owner of the Mortgage Loans and the
“Purchaser” under the Sale Agreement with respect to such Mortgage Loans.

     4. Servicing of the Mortgage Loans. From and after the date hereof, and on the
condition that Assignor shall have paid any Reconstitution Fee required pursuant to the Sale
Agreement, the Company shall service the Mortgage Loans for Assignee in accordance the Sale
Agreement. The address of “Purchaser” set forth in Section 15 of the Sale Agreement shall be
amended to read as follows:

Attn:

     The wire transfer instructions for distributions to Assignee on the remittance dates shall be
as follows:

Bank:

City:

ABA Routing Number:

For Credit to:

Account No.:

Attn:

     5. Status of Sale Agreement. The Company and Assignor represent and warrant to
Assignee that as of the date hereof (a) the Sale Agreement with respect to each of the Mortgage
Loans is in full force and effect, (b) the Sale Agreement has not been amended or modified in any
respect (except as provided herein), and (c) there has been no waiver or any agreement to waive any
provision, nor has any notice of termination been given, under the Sale Agreement.

     6. No Claims. The Company represents and warrants to Assignor and Assignee that it
has no offsets, counterclaims or other defenses available to it with respect to the Sale Agreement.
Assignor represents and warrants to the Company and Assignee that it has no offsets, counterclaims
or other defenses available to it with respect to the Sale Agreement.

     7. Covenants, Representations and Warranties of Assignor. Assignor represents and
warrants to, and covenants with, Assignee that:

          a. Assignor is a corporation duly organized, validly existing and in good standing under the
laws of the jurisdiction of its incorporation, and has all requisite corporate power and authority
to acquire, own and sell the Mortgage Loans;

          b. Assignor has full corporate power and authority to execute, deliver and perform under this
Agreement, and to consummate the transactions set forth herein. The execution, delivery and
performance of Assignor of this Agreement, and the consummation by it of the transactions
contemplated hereby, have been duly authorized by all necessary corporate action of Assignor. This
Agreement has been fully executed and delivered by Assignor and constitutes the valid and legally
binding obligation of Assignor enforceable against Assignor in accordance with its

77

 

respective
terms, except as enforcement is limited by applicable bankruptcy, insolvency and similar
laws affecting the rights of creditors generally, and by general principles of equity, regardless
of whether enforcement is sought in a proceeding in equity or at law;

          c. No material consent, approval, order or authorization of, or declaration, filing or
registration with, any governmental entity is required to be obtained or made by Assignor in
connection with the execution, delivery or performance by Assignor of this Agreement, or the
consummation by it of the transaction contemplated hereby;

          d. There is no action, suit, proceeding, investigation or litigation pending or, to Assignor’s
knowledge, threatened, which either in any instance or in the aggregate, if determined adversely to
Assignor, would materially and adversely affect (i) the sale of the Mortgage Loans to Assignee,
(ii) the execution, delivery or enforceability of this Agreement, or (iii) Assignor’s ability to
perform its obligations under this Agreement; and

          e. Immediately prior to payment of the Purchase Price for the Mortgage Loans, Assignor is the
lawful owner of the Mortgage Loans with the full right to transfer the Mortgage Loans free from any
and all claims and encumbrances whatsoever.

     8. Covenants, Representations and Warranties of Assignee. Assignee represents and
warrants to, and covenants with, Assignor and the Company that except for the provisions pertaining
to the payment of the purchase price thereunder, from and after the date hereof, Assignee agrees to
be bound as “Purchaser” by all of the terms, covenants and conditions of the Sale Agreement and
Assignee assumes for the benefit of Assignor and the Company all of Assignor’s obligations as
“Purchaser” thereunder.

     9. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the United States of America, and to the extent not preempted thereby, the laws
of the State of Michigan, without regard to the choice of law rules of Michigan or any other
jurisdiction.

     10. Confidentiality. The Company, Assignor and Assignee hereby acknowledge and agree
that this Agreement shall be kept confidential and its contents will not be divulged to any party
without the other party’s consent except to the extent that it is appropriate for the Company,
Assignor or Assignee to do so in working with their respective directors, officers, employees,
agents, legal counsel, auditors, taxing authorities or other governmental agencies.

     11. Conflict with Sale Agreement. To the extent there is any conflict between the
terms of the Sale Agreement and this Agreement, the latter shall be controlling, notwithstanding
anything to the contrary contained in the Sale Agreement.

     12. Capitalized Terms. All capitalized terms used herein and not otherwise defined
herein shall have the meanings assigned to such terms in the Sale Agreement.

     13. Counterparts. This Agreement may be executed in any number of counterparts. Each
counterpart shall be deemed to be an original and all such counterparts shall constitute one and
the same instrument. This Agreement may be delivered via facsimile transmission of executed
counterparts, and each executed counterpart so delivered shall be deemed an original.

78

 

     14. Notices. All demands, notices and communications hereunder shall be in writing
and shall be deemed to have been duly given if mailed, by registered or certified mail, postage
prepaid, return receipt requested, or, if by other means, when received by the other party at the
address as follows:

(a) if to Assignee:

With copy to:

(b) if to the Company:

ABN AMRO Mortgage Group, Inc.

7159 Corklan Drive

Jacksonville, FL 32258

Attn: Raymond Barbone

Phone:904/288-5211

Fax:904/288-5089

With copy to:

LaSalle Bank Corporation

Legal Department – M 0900-380

2600 West Big Beaver Road

Troy, Michigan 48084

Attn: Thomas E. Reiss

Phone: 248/637-2571

Fax: 248/637-2768

(c) if to Assignor:

With copy to

79

 

     SECTION 15. JURY WAIVER. EACH PARTY ACKNOWLEDGES THAT THE RIGHT OF TRIAL BY JURY IS
A CONSTITUTIONAL RIGHT, BUT ONE
THAT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH
LEGAL COUNSEL OF ITS CHOICE, KNOWINGLY AND VOLUNTARILY, FOR ITS OWN BENEFIT, WAIVES ANY RIGHT TO
TRIAL BY JURY IN THE EVENT OF LITIGATION IN ANY WAY RELATED TO THIS AGREEMENT, PERFORMANCE
THEREUNDER, AND/OR ENFORCEMENT THEREOF.

     The parties hereto have executed this Agreement on the date first above written.

	 	 	 	 	 
	 	 	 
	 	 	Assignor
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:
	 
	 	 	 	 
	 	 	 
	 	 	Assignee
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:
	 
	 	 	 	 
	 	 	ABN AMRO MORTGAGE GROUP, INC.,

the Company
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

80

 

EXHIBIT A

MORTGAGE LOANS

(attached)

81

 

EXHIBIT B

MORTGAGE LOAN

SALE AND SERVICING

AGREEMENT

(attached)

82

 

EXHIBIT 6

FORM OF

ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

(For Securitization Transactions #1)

[This agreement is for use in transferring rights and obligations relating to the Mortgage Loans
from Purchaser to a Depositor in connection with a Securitization Transaction.]

          THIS ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT, dated as of [ ], 2006 (the
“Assignment”), is entered into among RWT Holdings, Inc. (the “Assignor”), [
] (the “Assignee”) and ABN AMRO Mortgage Group, Inc., as the seller and servicer (the “Company”).

RECITALS

WHEREAS, the Assignor and the Company have entered into a certain Master Mortgage Loan Sale and
Servicing Agreement, dated as of July 1, 2006, and pursuant to the Commitment Letter(s) issued
under the Master Mortgage Loan Sale and Servicing Agreement and listed in Appendix A
hereto(together with the Master Mortgage Loan and Servicing Agreement, the “Agreement”) Assignor
acquired from the Company certain Mortgage Loans (the “Specified Mortgage Loans”) which are
listed on the mortgage loan schedule attached as Exhibit I hereto (the “Specified
Mortgage Loan Schedule”) and the Company agreed to service such Mortgage Loans; and

          WHEREAS, the Assignor has agreed to sell, assign and transfer to Assignee all of its right,
title and interest in the Specified Mortgage Loans and its rights under the Agreement with respect
to the Specified Mortgage Loans; and

          WHEREAS, the parties hereto have agreed that the Specified Mortgage Loans shall be subject to
the terms of this Assignment.

          NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties
agree as follows:

	 	1.	 	Assignment and Assumption.

     (a) Effective on and as of the date hereof, the Assignor hereby sells, assigns and
transfers to the Assignee all of its right, title and interest in the Specified Mortgage Loans
and all of its rights and obligations provided under the Agreement to the extent relating to the
Specified Mortgage Loans, the Assignee hereby accepts such assignment from the Assignor, and the
Company hereby acknowledges such assignment and assumption.

     (b) Effective on and as of the date hereof, the Assignor represents and warrants to the
Assignee that the Assignor has not taken any action that would serve to impair or encumber

83

 

the
Assignee’s interest in the Specified Mortgage Loans since the date of the Assignor’s acquisition
of the Specified Mortgage Loans.

	 	2.	 	Recognition of the Assignee.

From and after the date hereof, the Company shall recognize the Assignee as the holder of the
rights and benefits of the Purchaser with respect to the Specified Mortgage Loans and the
Company will service the Specified Mortgage Loans for the Assignee pursuant to the Master
Mortgage Loan Sale and Servicing Agreement, which is incorporated herein, as amended hereby,
with the Assignee as Purchaser thereunder. It is the intention of the parties hereto that this
Assignment will be binding upon and for the benefit of the respective successors and assigns of
the parties hereto.

	 	3.	 	Representations and Warranties.

     (a) The Assignee represents and warrants that it is a sophisticated investor able to
evaluate the risks and merits of the transactions contemplated hereby, and that it has not
relied in connection therewith upon any statements or representations of the Company or the
Assignor other than those contained in the Agreement or this Assignment.

     (b) The Assignee represents and warrants to, and covenants with, Assignor and the Company
that except for the provisions pertaining to the payment of the purchase price thereunder, from
and after the date hereof, Assignee agrees to be bound as “Purchaser” by all of the terms,
covenants and conditions of the Agreement and Assignee assumes for the benefit of Assignor and
the Company all of Assignor’s obligations as “Purchaser” thereunder.

     (c) Each of the parties hereto represents and warrants that it is duly and legally
authorized to enter into this Assignment.

     (d) Each of the parties hereto represents and warrants that this Assignment has been duly
authorized, executed and delivered by it and (assuming due authorization, execution and delivery
thereof by each of the other parties hereto) constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, except as such enforcement may
be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles (regardless of
whether such enforcement is considered in a proceeding in equity or at law).

	 	4.	 	Continuing Effect.

Except as contemplated hereby, the Agreement shall remain in full force and effect in accordance
with its terms. This Assignment constitutes a Reconstitution Agreement as defined in the Master
Mortgage Loan Sale and Servicing Agreement, and the Reconstitution Date shall be the date hereof
with respect to the Specified Mortgage Loans listed on Exhibit I on the date hereof.

	 	5.	 	Governing Law.

84

 

This Assignment shall be governed by, and construed in accordance with, the laws of the United
States of America, and to the extent not preempted thereby, the laws of the State of Michigan,
with out regard to the choice of law rules of Michigan or any other jurisdiction.

	 	6.	 	Notices.

Any notices or other communications permitted or required under the Agreement to be made to the
Assignor and Assignee shall be made in accordance with the terms of the Agreement and shall be
sent to the Assignor and Assignee as follows:

RWT Holdings, Inc.

One Belvedere Place, Suite 310

Mill Valley, CA 94941

[ASSIGNEE]

or to such other address as may hereafter be furnished by the Assignor or Assignee to the other
parties in accordance with the provisions of the Agreement.

	 	7.	 	Counterparts.

This Assignment may be executed in counterparts, each of which when so executed shall be deemed
to be an original and all of which when taken together shall constitute one and the same
instrument.

	 	8.	 	Definitions.

Any capitalized term used but not defined in this Assignment has the same meaning as in the
Agreement.

[remainder of page intentionally left blank]

85

 

IN WITNESS WHEREOF, the parties hereto have executed this Assignment the day and year first
above written.

	 	 	 	 	 
	 	 	ASSIGNOR:
	 
	 	 	 	 
	 	 	RWT HOLDINGS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	ASSIGNEE:
	 
	 	 	 	 
	 	 	[                    ].
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 
	 	 	ABN AMRO MORTGAGE GROUP, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

86

 

EXHIBIT I

87

 

APPENDIX A

Commitment Letter(s)

88

 

EXHIBIT 6 (continued)

FORM OF

ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

[For Securitization Transactions #2]

[This agreement is for use in transferring from Depositor to a trustee in connection with a
Securitization Transaction, the rights and benefits in Mortgage Loans, but not Purchaser’s
obligations, and is subject upon Company (“Seller” in the Master Mortgage Loan Sale and Servicing
Agreement) receiving an indemnification of Purchaser’s obligations under the Master Mortgage Loan
Sale and Servicing Agreement, pursuant to Section 11.24 of that agreement.]

     THIS ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT, dated as of [ ] ___, 2006 (the
“Assignment”), is entered into among [ ] (the “Assignor”), ABN AMRO Mortgage Group, Inc.,
Inc., as the seller and servicer (the “Company”), and [ ] (“ “) as Trustee under
a Pooling and Servicing Agreement dated as of [ ], 2006 (the “Pooling and Servicing
Agreement”), among the Assignor, as Depositor, [ ](in such Trustee capacity, the “Assignee”)
and [ ] as Master Servicer and Securities Administrator.

RECITALS

     WHEREAS, RWT Holdings, Inc. (“RWT”) and the Company have entered into a certain Master
Mortgage Loan Sale and Servicing Agreement, dated as of July 1, 2006 (the “Master Mortgage Loan
Sale and Servicing Agreement”), and pursuant to the Commitment Letter(s) issued under the Master
Mortgage Loan Sale and Servicing Agreement and listed in Appendix A hereto, (together with
the Master Mortgage Loan and Servicing Agreement, the “Agreement”) RWT has acquired from the
Company certain Mortgage Loans (the “Mortgage Loans”) and the Servicer has agreed to service such
Mortgage Loans; and

          WHEREAS, RWT has previously sold, assigned and transferred all of its right, title and
interest in certain of the Mortgage Loans (the “Specified Mortgage Loans”) which are listed on the
mortgage loan schedule attached as Exhibit I hereto (the “Specified Mortgage Loan
Schedule”) and certain rights under the Agreement with respect to the Specified Mortgage Loans to
Assignor; and

          WHEREAS, the parties hereto have agreed that the Specified Mortgage Loans shall be subject to
the terms of this Assignment;

          NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties
agree as follows:

	 	1.	 	Assignment and Assumption.

     (a) Effective on and as of the date hereof, the Assignor hereby pledges, assigns and
transfers to the Assignee all of its right, title and interest in the Specified Mortgage Loans
and all of its rights (but none of the Purchaser’s obligations) provided under the Agreement to
the

89

 

extent relating to the Specified Mortgage Loans, the Assignee hereby accepts such assignment
from the Assignor, and the Company hereby acknowledges such assignment and assumption.

     (b) Effective on and as of the date hereof, the Assignor represents and warrants to the
Assignee that the Assignor has not taken any action that would serve to impair or encumber the
Assignee’s interest in the Specified Mortgage Loans since the date of the Assignor’s acquisition
of the Specified Mortgage Loans.

	 	2.	 	Recognition of the Assignee.

From and after the date hereof, subject to Section 3 below, the Company shall recognize the
Assignee as the holder of the rights and benefits of the Purchaser with respect to the Specified
Mortgage Loans and the Company will service the Specified Mortgage Loans for the Assignee
pursuant to the Master Mortgage Loan Sale and Servicing Agreement, which is incorporated herein,
as amended hereby, with the Assignee as Purchaser thereunder. It is the intention of the
parties hereto that this Assignment will be binding upon and for the benefit of the respective
successors and assigns of the parties hereto.

	 	3.	 	Assignor’s Continuing Rights and Responsibilities.

Notwithstanding Sections 1 and 2 above, the parties hereto agree that the Assignor rather than
the Assignee shall have the ongoing rights to take action and the responsibilities of the
Purchaser under the following sections of the Agreement:

	 	 	     Master Mortgage Loan Sale and Servicing Agreement:

	 	 	 
	Section	 	Matter
	6.03, 1st and
2nd ¶’s

	 	(a) Remedies for Breach of
Representations and Warranties.
	 
	 	 
	6.05

	 	(b) Early Payment Default.
	 
	 	 
	11.01, 2nd ¶

	 	(c) Company to Act as Servicer.
	 
	 	 
	11.02

	 	(d) Liquidation of Mortgage Loans.
	 
	 	 
	11.13, 3rd ¶

	 	(e) Title, Management and Disposition of REO Property.
	 
	 	 
	11.18

	 	(f) Assumption Agreements.

90

 

	 	 	 
	Section	 	Matter
	11.22

	 	(g) Company Shall Provide Access and Information as
Reasonably Required.
	 
	 	 
	12.01

	 	(h) Indemnification; Third Party Claims.
	 
	 	 
	12.04

	 	(i) Company Not to Resign.

In addition, the Company agrees to furnish to the Assignor as well as the Assignee copies of
reports, notices, statements and other communications required to be delivered by the Company
pursuant to any of the sections of the Agreement referred to above and under the following
sections, at the times therein specified:

	 	 	     Master Mortgage Loan Sale and Servicing Agreement:

	 	 	 
	Section	 	 
	11.09

	 	(a) Transfer of Accounts.
	 
	 	 
	11.16

	 	(b) Statements to Purchaser.
	 
	 	 
	11A.03

	 	(c) Servicer Compliance Statement.
	 
	 	 
	11A.04

	 	(d) Report on Assessment of Compliance and Attestation.
	 
	 	 
	11.21

	 	(e) Annual Independent Public Accountant’s
Servicing Report.

	 	4.	 	Representations and Warranties.

     (a) The Assignee represents and warrants that it is a sophisticated investor able to
evaluate the risks and merits of the transactions contemplated hereby, and that it has not
relied in connection therewith upon any statements or representations of the Company or the
Assignor other than those contained in the Agreement or this Assignment.

     (b) Each of the parties hereto represents and warrants that it is duly and legally
authorized to enter into this Assignment.

91

 

     (c) Each of the parties hereto represents and warrants that this Assignment has been duly
authorized, executed and delivered by it and (assuming due authorization, execution and delivery
thereof by each of the other parties hereto) constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, except as such enforcement may
be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles (regardless of
whether such enforcement is considered in a proceeding in equity or at law).

	 	5.	 	Continuing Effect.

Except as contemplated hereby, the Agreement shall remain in full force and effect in accordance
with its terms. This Assignment constitutes a Reconstitution Agreement as defined in the Master
Mortgage Loan Sale and Servicing Agreement, and the Reconstitution Date shall be the date hereof
with respect to the Specified Mortgage Loans listed on Exhibit I on the date hereof.

	 	6.	 	Governing Law.

This Assignment shall be governed by, and construed in accordance with, the laws of the United
States of America, and to the extent not preempted thereby, the laws of the State of Michigan,
with out regard to the choice of law rules of Michigan or any other jurisdiction.

	 	7.	 	Notices.

Any notices or other communications permitted or required under the Agreement to be made to the
Assignor and Assignee shall be made in accordance with the terms of the Agreement and shall be
sent to the Assignor and Assignee as follows:

[ASSIGNOR]

[ASSIGNEE]

or to such other address as may hereafter be furnished by the Assignor or Assignee to the other
parties in accordance with the provisions of the Agreement.

	 	8.	 	Counterparts.

This Assignment may be executed in counterparts, each of which when so executed shall be deemed
to be an original and all of which when taken together shall constitute one and the same
instrument.

	 	9.	 	Definitions.

Any capitalized term used but not defined in this Assignment has the same meaning as in the
Agreement.

	 	10.	 	Master Servicer.

92

 

     The Company hereby acknowledges that the Assignee has appointed ___the “Master
Servicer”) to act as master servicer under the Pooling and Servicing Agreement and hereby agrees to
treat all inquiries, instructions, authorizations and other communications from the Master Servicer
as if the same had been received from the Assignee. The Master Servicer, acting on behalf of the
Assignee, shall have the rights of the Assignee as the Purchaser under the Agreement to enforce the
obligations of the Company thereunder. Any notices or other communications permitted or required
under the Agreement to be made to the Assignee shall be made in accordance with the terms of the
Agreement and shall be sent to the Master Servicer at the following address:

[MASTER SERVICER]

or to such other address as may hereafter be furnished by the Master Servicer to Company. Any such
notices or other communications permitted or required under the Agreement may be delivered in
electronic format unless manual signature is required in which case a hard copy of such report or
communication shall be required.

     11. Successors and Assigns.

     Upon a transfer of the Specified Mortgage Loans by the Assignee (other than in respect of
repurchases pursuant to Section 5.03 or Section 6.03 of the Agreement) to a buyer (“buyer”), such
transfer shall constitute a Reconstitution subject to the terms of Section 11.24 of the Agreement.
Upon the closing of such transfer, the rights and obligations of Purchaser retained by the Assignor
pursuant to this Assignment shall automatically terminate and the buyer shall be deemed to possess
all of the rights and obligations of Purchaser under the Agreement, provided, however, that the
Assignor shall remain liable for any obligations as Purchaser arising from or attributable to the
period from the date hereof to the closing date of such transfer.

     IN WITNESS WHEREOF, the parties hereto have executed this Assignment the day and year first
above written.

	 	 	 	 	 
	 	 	ASSIGNOR:
	 
	 	 	 	 
	 	 	[                    ]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

(CONTINUED ON FOLLOWING PAGE)

93

 

	 	 	 	 	 
	 	 	ASSIGNEE:
	 
	 	 	 	 
	 	 	[                    ]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 
	 	 	ABN AMRO MORTGAGE GROUP, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

94

 

EXHIBIT I

95

 

EXHIBIT II

 

 

APPENDIX A

	 	 	 	 	 	 	 	 	 
	Commitment Letter(s)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

 

 

EXHIBIT 7

FORM OF INDEMNIFICATION AGREEMENT

     Indemnification Agreement dated as of [DATE] (the “Agreement”) among ABN AMRO Mortgage Group,
Inc. (“ABN AMRO”), [UNDERWRITER] [any other underwriters] (the “Underwriter”) [DEPOSITOR]. (the
“Depositor”), [ISSUING ENTITY], RWT HOLDINGS, INC. and REDWOOD TRUST, INC.

     Reference is made to the issuance of [                                                  ] (the
“Certificates”), pursuant to a Pooling and Servicing Agreement, dated as of [DATE] (the “Pooling
and Servicing Agreement”), among the Depositor, as depositor, [MASTER SERVICER], as master servicer
and securities administrator, and [TRUSTEE], as trustee (the “Trustee”). The Depositor will sell
certain of the Certificates to the Underwriter(s) for offer and sale pursuant to the terms of an
Underwriting Agreement, dated [DATE] (the “Underwriting Agreement”), between the Depositor, RWT
Holdings, Inc. and Redwood Trust, Inc. (the Depositor, RWT Holdings, Inc. and Redwood Trust, Inc.
together, the “Redwood Entities”) and the Underwriter(s). Reference is also made to the Term Sheet
dated [DATE](the “Term Sheet”) and the Prospectus Supplement dated [DATE] (the “Prospectus
Supplement”) relating to the Certificates (the Term Sheet and the Prospectus Supplement together,
the “Offering Materials”).

     ABN AMRO Mortgage Group, Inc. (“ABN AMRO”) hereby agrees to indemnify and hold harmless the
Redwood Entities, [ISSUING ENTITY] (the “Issuing Entity”) and the Underwriter(s), the respective
present and former directors, officers, employees and agents of each of the foregoing and each
person, if any, who controls each of the Redwood Entities or the Underwriter within the meaning of
Section 15 of the Securities Act of 1933, as amended (the “Act”), or Section 20 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), from and against any and all losses, claims,
liabilities, damages, penalties, fines, forfeitures, legal fees and expenses and related costs,
judgments, and any other costs, fees and expenses that any of them may sustain as and when such
losses, claims, liabilities, damages, penalties, fines, forfeitures, legal fees or expenses or
related costs, judgments, or any other costs, fees or expenses are incurred, insofar as such
losses, claims, liabilities, damages, penalties, fines, forfeitures, legal fees or expenses or
related costs, judgments, or any other costs, fees or expenses (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement of any material
fact contained in the ABN AMRO Information (as defined herein), or arise out of, or are based upon,
the omission or alleged omission to state in the ABN AMRO Information any material fact required to
be stated therein or necessary to make the statements in the ABN AMRO Information, in light of the
circumstances under which they were made, not misleading, and will reimburse the Redwood Entities,
the Issuing Entity and each Underwriter, the present and former respective officers, directors,
employees and agents of each of the foregoing and any such controlling person for any legal or
other expenses reasonably incurred by it or any of them in connection with investigating or
defending any such losses, claims, liabilities, damages, penalties, fines, forfeitures, legal fees
or expenses or related costs, judgments, or any other costs, fees or expenses, as and when
incurred.

2

 

     The Underwriters, severally and not jointly, hereby agree to indemnify and hold harmless ABN
AMRO, the respective present and former directors, officers, employees and agents of ABN AMRO and
each person, if any, who controls ABN AMRO within the meaning of Section 15 of the Act, or Section
20 of the Exchange Act, from and against any and all losses, claims, liabilities, damages,
penalties, fines, forfeitures, legal fees and expenses and related costs, judgments, and any other
costs, fees and expenses that any of them may sustain as and when such losses, claims, liabilities,
damages, penalties, fines, forfeitures, legal fees or expenses or related costs, judgments, or any
other costs, fees or expenses are incurred, insofar as such losses, claims, liabilities, damages,
penalties, fines, forfeitures, legal fees or expenses or related costs, judgments, or any other
costs, fees or expenses (or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in the Underwriters’
Information (as defined herein), or arise out of, or are based upon, the omission or alleged
omission to state in the Underwriters’ Information any material fact required to be stated therein
or necessary to make the statements in the Underwriters’ Information, in light of the circumstances
under which they were made, not misleading, and will reimburse ABN AMRO, the present and former
respective officers, directors, employees and agents of ABN AMRO and any such controlling person
for any legal or other expenses reasonably incurred by it or any of them in connection with
investigating or defending any such losses, claims, liabilities, damages, penalties, fines,
forfeitures, legal fees or expenses or related costs, judgments, or any other costs, fees or
expenses, as and when incurred.

     The Redwood Entities hereby agree to indemnify and hold harmless ABN AMRO, the respective
present and former directors, officers, employees and agents of ABN AMRO and each person, if any,
who controls ABN AMRO within the meaning of Section 15 of the Act, or Section 20 of the Exchange
Act, from and against any and all losses, claims, liabilities, damages, penalties, fines,
forfeitures, legal fees and expenses and related costs, judgments, and any other costs, fees and
expenses that any of them may sustain as and when such losses, claims, liabilities, damages,
penalties, fines, forfeitures, legal fees or expenses or related costs, judgments, or any other
costs, fees or expenses are incurred, insofar as such losses, claims, liabilities, damages,
penalties, fines, forfeitures, legal fees or expenses or related costs, judgments, or any other
costs, fees or expenses (or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in the Term Sheet or the
Prospectus Supplement other than the ABN AMRO Information and the Underwriters’ Information (the
“Redwood Entities’ Information”), or arise out of, or are based upon, the omission or alleged
omission to state in the Redwood Entities’ Information any material fact required to be stated
therein or necessary to make the statements in the Redwood Entities’ Information, in light of the
circumstances under which they were made, not misleading, and will reimburse ABN AMRO, the present
and former respective officers, directors, employees and agents of ABN AMRO and any such
controlling person for any legal or other expenses reasonably incurred by it or any of them in
connection with investigating or defending any such losses, claims, liabilities, damages,
penalties, fines, forfeitures, legal fees or expenses or related costs, judgments, or any other
costs, fees or expenses, as and when incurred.

     For purposes of this Indemnification Agreement, the Redwood Entities, the Issuing Entity, each
Underwriter and ABN AMRO acknowledge and agree that “ABN AMRO Information” shall mean the
information set forth in Exhibit A hereto and on ABN AMRO’s internet website at [www.                    ] as
to static pool information, [UPDATE AS NEEDED FOR EACH DEAL] (the “ABN AMRO Information”), and ABN
AMRO hereby represents and

3

 

warrants, as of the date of the Offering Materials, that the ABN AMRO Information is true and
correct in all material respects. and includes all information that is required to be provided
pursuant to Section 11A.03 of the Agreement.

     For purposes of this Indemnification Agreement, the Redwood Entities, the Issuing Entity, each
Underwriter and ABN AMRO also acknowledge and agree that the statements set forth in the last
paragraph on the front cover page of the Prospectus Supplement and in the second and fourth
paragraphs under the heading “Method of Distribution” in the Prospectus Supplement, constitute the
only information furnished by the Underwriters for inclusion in the Offering Materials (the
“Underwriters’ Information”)[UPDATE AS NEEDED FOR EACH DEAL] and each Underwriter hereby represents
and warrants, as of the date of the Offering Materials, that the Underwriters’ Information is true
and correct in all material respects.

     Each of the Redwood Entities hereby represents and warrants, as of the date of the Offering
Materials, that the Redwood Entities’ Information is true and correct in all material respects, and
that the ABN AMRO Information has been incorporated into the Term Sheet, the Prospectus Supplement
and any other related disclosure document in the complete form and substance as set forth in
Exhibit A hereto or as set forth in ABN AMRO’s internet website at [www.___] as to static
pool information.

     Promptly after receipt by an indemnified party hereunder of notice of the commencement of any
action, such indemnified party will, if a claim in respect thereof is to be made against the
indemnifying party hereunder, notify the indemnifying party in writing of the commencement thereof;
but the omission so to notify the indemnifying party will not relieve it from any liability that
such indemnifying party may have to any indemnified party under this Agreement except to the extent
that such indemnifying party has been materially prejudiced by such failure; provided, however,
that the failure to so notify the indemnifying party shall not relieve it from any liability that
such indemnifying party may have to any indemnified party otherwise than under this Agreement. In
case any such action is brought against any indemnified party, and it notifies the indemnifying
party of the commencement thereof, the indemnifying party shall be entitled to participate therein,
and, to the extent that such indemnifying party may wish, to assume (at its own expense) the
defense thereof, with counsel satisfactory to such indemnified party (which counsel may be counsel
to the indemnifying party), and, after notice from the indemnifying party to such indemnified party
hereunder, such indemnifying party shall not be liable for any legal or other expenses subsequently
incurred by such indemnified party in connection with the defense thereof unless (i) the
indemnifying party shall have agreed in writing to the continuing participation of such counsel or
(ii) the named parties to any such proceeding (including any impleaded parties) include both the
indemnifying party and the indemnified party and representation of both parties by the same counsel
would, in the opinion of such counsel, be inappropriate due to the actual or potential differing
interests between them. If the indemnifying party assumes the defense of any proceeding, it shall
be entitled to settle such proceeding with the consent of the indemnified party, which will not be
unreasonably withheld or delayed or, if such settlement provides for release of the indemnified
party in connection with all matters relating to the proceeding which have been asserted against
the indemnified party in such proceeding by the other parties to such settlement, without the
consent of the indemnified party; provided, however, that the indemnifying party, without the prior
written consent of the indemnified party, shall not agree to any settlement if the matter involves
any possible criminal action or proceeding, or contains a stipulation to, or admission or
acknowledgment of any wrongdoing (in tort or otherwise) on the part of the indemnified party, and
any such settlement

4

 

agreed to without the prior written consent of the indemnified party shall be void and of no
effect with respect to the indemnified party.

     If recovery is not available under the foregoing indemnification provisions for any reason
other than as specified therein, each indemnified party shall be entitled to contribution to
liabilities and expenses, except to the extent that contribution is not permitted under Section
11(f) of the Act. In determining the amount of such contribution, there shall be considered the
parties’ relative knowledge and access to information concerning the matter with respect to which
the claim was asserted, the opportunity to correct and prevent any misstatement or omission, the
relative fault of the parties, and any other equitable considerations appropriate under the
circumstances; provided, however, that no Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person that
was not guilty of such fraudulent misrepresentation. For purposes of this Indemnification
Agreement, each Person, if any, that controls any Underwriter or the Redwood Entities within the
meaning of either the 1933 Act or the 1934 Act shall have the same rights to contribution as does
each Underwriter, the Redwood Entities, and each Person, if any, that controls ABN AMRO within the
meaning of either the 1933 Act or the 1934 Act and each director of ABN AMRO shall have the same
rights to contribution as ABN AMRO. Any party entitled to contribution will, promptly after
receipt of notice of commencement of any action, suit or proceeding against such party in respect
of which a claim for contribution may be made against another party or parties under this
paragraph, notify in writing such party or parties from whom contribution may be sought, but the
omission to so notify such party or parties shall not relieve the party or parties from whom
contribution may be sought from any other obligation it or they may have hereunder or otherwise
than under this paragraph.

     The agreements, indemnities and representations of the parties thereto contained herein or
made pursuant to this Agreement will remain in full force and effect, regardless of any
investigation, or statement as to the results thereof, made by or on behalf of any parties hereto
or any of the controlling persons referred to herein, and will survive the sale of the
Certificates.

     THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE UNITED
STATES OF AMERICA, AND, TO THE EXTENT NOT PREEMPTED THEREBY, THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     This Agreement shall inure to the benefit of and be binding upon the parties hereto and their
successors and assignees and the controlling persons referred to herein, and no other person shall
have any right or obligation hereunder. Neither this Agreement nor any term hereof may be changed,
waived, discharged or terminated orally, but only by an instrument in writing signed by the party
against whom enforcement of the change, waiver, discharge or termination is sought. This Agreement
may be executed in counterparts, each of which when so executed and delivered shall be considered
an original, and all such counterparts shall constitute one and the same instrument.

5

 

     JURY WAIVER. EACH PARTY ACKNOWLEDGES THAT THE RIGHT OF TRIAL BY JURY IS A
CONSTITUTIONAL RIGHT, BUT ONE THAT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE
OPPORTUNITY TO CONSULT) WITH LEGAL COUNSEL OF ITS CHOICE, KNOWINGLY AND VOLUNTARILY, FOR ITS OWN
BENEFIT, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION IN ANY WAY RELATED TO THIS
AGREEMENT, PERFORMANCE THEREUNDER, AND/OR ENFORCEMENT THEREOF.

     Executed as of the day and year first above written.

	 	 	 	 	 
	 	ABN AMRO MORTGAGE GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[DEPOSITOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[UNDERWRITER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[OTHER UNDERWRITER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	     Title:  	 	 
	 

(CONTINUED ON FOLLOWING PAGE

6

 

	 	 	 	 	 
	 	[OTHER UNDERWRITER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[                    ], as Issuing Entity

By: [TRUSTEE], not in its individual capacity but

solely as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	RWT HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	REDWOOD TRUST, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

7

 

	 	 	 	 	 

EXHIBIT A – ABN AMRO INFORMATION

     [Information for this Exhibit to be supplied by Seller on a deal by deal basis]

8

 

EXHIBIT 8

Form of Bring Down Letter

[Purchaser’s Letterhead]

[Only good IF the date of closing of the
Securitization Transaction of the Mortgage
Loan occurs on or before the last Business
Day of the calendar month following the
calendar month of the related Closing Date
of the Mortgage Loan]

	 	 	 	 	 	 	 
	 

	 	 	 	___, 200_	 	 
	 
	 	 	 	 	 	 
	[Name of Seller]
	 	 	 	 	 	 
	[Address of Seller]
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Re:
	 	Master Mortgage Loan Sale and Servicing	 	 
	 

	 	 	 	Agreement, dated as of ___, 200_	 	 

Ladies and Gentlemen:

     Reference is made to Section 11.24 of the referenced Master Mortgage Loan Sale and Servicing
Agreement, dated as of June 1, 2006 (the “Agreement”), between RWT Holdings, Inc., as
Purchaser and ___, as Seller. Capitalized terms used herein and not otherwise defined
have the meanings set forth in the Agreement.

     Pursuant to such Section 11.24, we hereby notify you that the representations and warranties
set forth in Section 6.01 of the Agreement with respect to the Mortgage Loans identified on Exhibit
A hereto are being made by you as of ___, 200___(the “Bring-Down Date”).

     This letter will be the only document evidencing your obligation to make the representations
and warranties set forth in Section 6.01 with respect to the Mortgage Loans identified on Exhibit A
hereto as of the Bring-Down Date. Reference is made to Section 6.03 of the Agreement for the
procedures to be followed by the parties to the Agreement in the event of any breach of a
representation and warranty and the remedies therefore.

	 	 	 	 	 
	 	Very truly yours,

as Purchaser
 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	 	 

9

 

	 	 	 	 	 

EXHIBIT 9

SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

     The assessment of compliance to be completed by a Primary Servicer:

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	 

	 	General Servicing Considerations	 	 
	 
	 	 	 	 
	1122(d)(1)(i)

	 	Policies and procedures are instituted to monitor any performance or
other triggers and events of default in accordance with the transaction
agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(1)(ii)

	 	If any material servicing activities are outsourced to third
parties, policies and procedures are instituted to monitor the third
party’s performance and compliance with such servicing activities.
	 	Yes
	 
	 	 	 	 
	1122(d)(1)(iii)

	 	Any requirements in the transaction agreements to maintain a back-up
servicer for the mortgage loans are maintained.
	 	Yes
	 
	 	 	 	 
	1122(d)(1)(iv)

	 	A fidelity bond and errors and omissions policy is in effect on the
party participating in the servicing function throughout the reporting
period in the amount of coverage required by and otherwise in accordance
with the terms of the transaction agreements.
	 	Yes
	 
	 	 	 	 
	 

	 	Cash Collection and Administration	 	 
	 
	 	 	 	 
	1122(d)(2)(i)

	 	Payments on mortgage loans are deposited into the appropriate
custodial bank accounts and related bank clearing accounts no more than
two business days following receipt, or such other number of days
specified in the transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(2)(ii)

	 	Disbursements made via wire transfer on behalf of an obligor or to
an investor are made only by authorized personnel.
	 	Yes
	 
	 	 	 	 
	1122(d)(2)(iii)

	 	Advances of funds or guarantees regarding collections, cash flows or
distributions, and any interest or other fees charged for such advances,
are made, reviewed and approved as specified in the transaction
agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(2)(iv)

	 	The related accounts for the transaction, such as cash reserve
accounts or accounts established as a form of overcollateralization, are
separately maintained (e.g., with respect to commingling of cash) as set
forth in the transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(2)(v)

	 	Each custodial account is maintained at a federally insured
depository institution as set forth in the transaction agreements. For
purposes of this criterion, “federally insured depository institution”
with respect to a foreign financial institution means a foreign
financial institution that meets the requirements of Rule 13k-1(b)(1) of
the Securities Exchange Act.
	 	Yes
	 
	 	 	 	 
	1122(d)(2)(vi)

	 	Unissued checks are safeguarded so as to prevent unauthorized access.
	 	Yes
	 
	 	 	 	 
	1122(d)(2)(vii)

	 	Reconciliations are prepared on a monthly basis for all
asset-backed securities related bank accounts, including custodial
accounts and related bank clearing accounts. These reconciliations are
(A) mathematically accurate; (B) prepared within 30 calendar days after
the bank statement cutoff date, or such other number of days specified
in the transaction agreements; (C) reviewed and approved by someone
other than the person who prepared the reconciliation; and (D) contain
explanations for reconciling items. These reconciling items are resolved
within 90 calendar days of their original identification, or such other
number of days specified in the transaction agreements.
	 	Yes

10

 

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	 

	 	Investor Remittances and Reporting	 	 
	 
	 	 	 	 
	1122(d)(3)(i)

	 	Reports to investors, including those to be filed with the
Commission, are maintained in accordance with the transaction agreements
and applicable Commission requirements. Specifically, such reports (A)
are prepared in accordance with timeframes and other terms set forth in
the transaction agreements; (B) provide information calculated in
accordance with the terms specified in the transaction agreements; (C)
are filed with the Commission as required by its rules and regulations;
and (D) agree with investors’ or the trustee’s records as to the total
unpaid principal balance and number of mortgage loans serviced by the
Servicer.
	 	Yes
	 
	 	 	 	 
	1122(d)(3)(ii)

	 	Amounts due to investors are allocated and remitted in accordance
with timeframes, distribution priority and other terms set forth in the
transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(3)(iii)

	 	Disbursements made to an investor are posted within two business
days to the Servicer’s investor records, or such other number of days
specified in the transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(3)(iv)

	 	Amounts remitted to investors per the investor reports agree with
cancelled checks, or other forms of payment, or custodial bank
statements.
	 	Yes
	 
	 	 	 	 
	 

	 	Pool Asset Administration	 	 
	 
	 	 	 	 
	1122(d)(4)(i)

	 	Collateral or security on mortgage loans is maintained as required
by the transaction agreements or related mortgage loan documents.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(ii)

	 	Mortgage loan and related documents are safeguarded as required by
the transaction agreements
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(iii)

	 	Any additions, removals or substitutions to the asset pool are made,
reviewed and approved in accordance with any conditions or requirements
in the transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(iv)

	 	Payments on mortgage loans, including any payoffs, made in
accordance with the related mortgage loan documents are posted to the
Servicer’s obligor records maintained no more than two business days
after receipt, or such other number of days specified in the transaction
agreements, and allocated to principal, interest or other items (e.g.,
escrow) in accordance with the related mortgage loan documents.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(v)

	 	The Servicer’s records regarding the mortgage loans agree with the
Servicer’s records with respect to an obligor’s unpaid principal
balance.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(vi)

	 	Changes with respect to the terms or status of an obligor’s mortgage
loans (e.g., loan modifications or re-agings) are made reviewed and
approved by authorized personnel in accordance with the transaction
agreements and related pool asset documents.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(vii)

	 	Loss mitigation or recovery actions (e.g., forbearance plans,
modifications and deeds in lieu of foreclosure, foreclosures and
repossessions, as applicable) are initiated, conducted and concluded in
accordance with the timeframes or other requirements established by the
transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(viii)

	 	Records documenting collection efforts are maintained during the
period a mortgage loan is delinquent in accordance with the transaction
agreements. Such records are maintained on at least a monthly basis, or
such other period specified in the transaction agreements, and describe
the entity’s activities in monitoring delinquent mortgage loans
including, for example, phone calls, letters and payment rescheduling
plans in cases where delinquency is deemed temporary (e.g., illness or
unemployment).
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(ix)

	 	Adjustments to interest rates or rates of return for mortgage loans
with variable rates are computed based on the related mortgage loan
documents.
	 	Yes

11

 

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	1122(d)(4)(x)

	 	Regarding any funds held in trust for an obligor (such as escrow
accounts): (A) such funds are analyzed, in accordance with the obligor’s
mortgage loan documents, on at least an annual basis, or such other
period specified in the transaction agreements; (B) interest on such
funds is paid, or credited, to obligors in accordance with applicable
mortgage loan documents and state laws; and (C) such funds are returned
to the obligor within 30 calendar days of full repayment of the related
mortgage loans, or such other number of days specified in the
transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(xi)

	 	Payments made on behalf of an obligor (such as tax or insurance
payments) are made on or before the related penalty or expiration dates,
as indicated on the appropriate bills or notices for such payments,
provided that such support has been received by the servicer at least 30
calendar days prior to these dates, or such other number of days
specified in the transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(xii)

	 	Any late payment penalties in connection with any payment to be made
on behalf of an obligor are paid from the servicer’s funds and not
charged to the obligor, unless the late payment was due to the obligor’s
error or omission.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(xiii)

	 	Disbursements made on behalf of an obligor are posted within two
business days to the obligor’s records maintained by the servicer, or
such other number of days specified in the transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(xiv)

	 	Delinquencies, charge-offs and uncollectible accounts are
recognized and recorded in accordance with the transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(xv)

	 	Any external enhancement or other support, identified in Item
1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as
set forth in the transaction agreements.
	 	No

12

 

EXHIBIT 10

ITEM 1122 FORM OF SERVICING ASSESSMENT

Re:           The [          ] agreement dated as of [     ], 200[ ] (the
“Agreement”), among [IDENTIFY PARTIES]

I,                                                             , the           
                               of [NAME OF SELLER], certify to
Purchaser. [MASTER SERVICER][DEPOSITOR] as follows:

(1) I am responsible for assessing compliance by ABN AMRO Mortgage Group, Inc.(“AAMG”), with the
with the servicing criteria of Item 1122(d) of Regulation AB applicable to it, set forth in the
Servicing Criteria to be Addressed in Assessment of Compliance annexed hereto as Exhibit A (the
“Servicing Criteria”);

(2) I used the criteria of Item 1122 (d) of Regulation AB to assess AAMG’s compliance with the
Servicing Criteria.

(3) For purposes of this certification, the following terms used in Exhibit A hereto shall have the
following meanings:

[Changes in (i), (ii), and (iii) are not really necessary, and are less accurate]

(i) Regarding 1122(d)(2)(iii), “related accounts” means one or more custodial accounts
maintained pursuant to the agreement or agreements to which Servicer is a party; and
“transaction agreements” means the agreement or agreements to which Servicer is a party.

	 	(ii)	 	Regarding 1122(d)(3)(i) through (iv), “Reports to investors”; “investor
reports” and “reports” each mean, where used, reports Servicer delivers to the Master
Servicer on behalf of the trust[Depositor?].
	 
	 	 	 	“investor” and “investors” each mean, where used, the Master Servicer on behalf of
the trust[Depositor?].
	 
	 	 	 	“transaction agreements” means, where used, agreements to which Servicer is a party.
	 
	 	(iii)	 	Regarding 1122(d)(3)(i) (C) and (D), Servicer has no knowledge of, and is not
responsible for, Commission filings, or books and records of others, such as trustees,
investors or Master Servicers.

(4) Based on my knowledge, it is my assessment that AAMG has complied with the Servicing Criteria
for the period ending the end of the fiscal year 200___(the “Applicable Period”); except for any
material instances of noncompliance disclosed on the Non-Compliance Disclosure attached hereto as
Exhibit B hereto.

13

 

(5) A registered public accounting firm has issued an attestation report on my assessment of
compliance with the Servicing Criteria as of and for the Applicable Period.

	 	 	 	 	 	 	 
	ABN AMRO MORTGAGE GROUP, INC	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

14

 

EXHIBIT A

TO SERVICING ASSESSMENT

Dated ___________, 200____

     Re:           The [                    ] agreement dated as of [          ], 200[ ] (the
“Agreement”), among [IDENTIFY PARTIES]

SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

     The assessment of compliance to be completed by a Primary Servicer:

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	 

	 	General Servicing Considerations	 	 
	 
	 	 	 	 
	1122(d)(1)(i)

	 	Policies and procedures are instituted to monitor any performance or
other triggers and events of default in accordance with the transaction
agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(1)(ii)

	 	If any material servicing activities are outsourced to third
parties, policies and procedures are instituted to monitor the third
party’s performance and compliance with such servicing activities.
	 	Yes
	 
	 	 	 	 
	1122(d)(1)(iii)

	 	Any requirements in the transaction agreements to maintain a back-up
servicer for the mortgage loans are maintained.
	 	Yes
	 
	 	 	 	 
	1122(d)(1)(iv)

	 	A fidelity bond and errors and omissions policy is in effect on the
party participating in the servicing function throughout the reporting
period in the amount of coverage required by and otherwise in accordance
with the terms of the transaction agreements.
	 	Yes
	 
	 	 	 	 
	 

	 	Cash Collection and Administration	 	 
	 
	 	 	 	 
	1122(d)(2)(i)

	 	Payments on mortgage loans are deposited into the appropriate
custodial bank accounts and related bank clearing accounts no more than
two business days following receipt, or such other number of days
specified in the transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(2)(ii)

	 	Disbursements made via wire transfer on behalf of an obligor or to
an investor are made only by authorized personnel.
	 	Yes
	 
	 	 	 	 
	1122(d)(2)(iii)

	 	Advances of funds or guarantees regarding collections, cash flows or
distributions, and any interest or other fees charged for such advances,
are made, reviewed and approved as specified in the transaction
agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(2)(iv)

	 	The related accounts for the transaction, such as cash reserve
accounts or accounts established as a form of overcollateralization, are
separately maintained (e.g., with respect to commingling of cash) as set
forth in the transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(2)(v)

	 	Each custodial account is maintained at a federally insured
depository institution as set forth in the transaction agreements. For
purposes of this criterion, “federally insured depository institution”
with respect to a foreign financial institution means a foreign
financial institution that meets the requirements of Rule 13k-1(b)(1) of
the Securities Exchange Act.
	 	Yes
	 
	 	 	 	 
	1122(d)(2)(vi)

	 	Unissued checks are safeguarded so as to prevent unauthorized access.
	 	Yes

15

 

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	1122(d)(2)(vii)

	 	Reconciliations are prepared on a monthly basis for all
asset-backed securities related bank accounts, including custodial
accounts and related bank clearing accounts. These reconciliations are
(A) mathematically accurate; (B) prepared within 30 calendar days after
the bank statement cutoff date, or such other number of days specified
in the transaction agreements; (C) reviewed and approved by someone
other than the person who prepared the reconciliation; and (D) contain
explanations for reconciling items. These reconciling items are resolved
within 90 calendar days of their original identification, or such other
number of days specified in the transaction agreements.
	 	Yes
	 
	 	 	 	 
	 

	 	Investor Remittances and Reporting	 	 
	 
	 	 	 	 
	1122(d)(3)(i)

	 	Reports to investors, including those to be filed with the
Commission, are maintained in accordance with the transaction agreements
and applicable Commission requirements. Specifically, such reports (A)
are prepared in accordance with timeframes and other terms set forth in
the transaction agreements; (B) provide information calculated in
accordance with the terms specified in the transaction agreements; (C)
are filed with the Commission as required by its rules and regulations;
and (D) agree with investors’ or the trustee’s records as to the total
unpaid principal balance and number of mortgage loans serviced by the
Servicer.
	 	Yes
	 
	 	 	 	 
	1122(d)(3)(ii)

	 	Amounts due to investors are allocated and remitted in accordance
with timeframes, distribution priority and other terms set forth in the
transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(3)(iii)

	 	Disbursements made to an investor are posted within two business
days to the Servicer’s investor records, or such other number of days
specified in the transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(3)(iv)

	 	Amounts remitted to investors per the investor reports agree with
cancelled checks, or other forms of payment, or custodial bank
statements.
	 	Yes
	 
	 	 	 	 
	 

	 	Pool Asset Administration	 	 
	 
	 	 	 	 
	1122(d)(4)(i)

	 	Collateral or security on mortgage loans is maintained as required
by the transaction agreements or related mortgage loan documents.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(ii)

	 	Mortgage loan and related documents are safeguarded as required by
the transaction agreements
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(iii)

	 	Any additions, removals or substitutions to the asset pool are made,
reviewed and approved in accordance with any conditions or requirements
in the transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(iv)

	 	Payments on mortgage loans, including any payoffs, made in
accordance with the related mortgage loan documents are posted to the
Servicer’s obligor records maintained no more than two business days
after receipt, or such other number of days specified in the transaction
agreements, and allocated to principal, interest or other items (e.g.,
escrow) in accordance with the related mortgage loan documents.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(v)

	 	The Servicer’s records regarding the mortgage loans agree with the
Servicer’s records with respect to an obligor’s unpaid principal
balance.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(vi)

	 	Changes with respect to the terms or status of an obligor’s mortgage
loans (e.g., loan modifications or re-agings) are made reviewed and
approved by authorized personnel in accordance with the transaction
agreements and related pool asset documents.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(vii)

	 	Loss mitigation or recovery actions (e.g., forbearance plans,
modifications and deeds in lieu of foreclosure, foreclosures and
repossessions, as applicable) are initiated, conducted and concluded in
accordance with the timeframes or other requirements established by the
transaction agreements.
	 	Yes

16

 

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	1122(d)(4)(viii)

	 	Records documenting collection efforts are maintained during the
period a mortgage loan is delinquent in accordance with the transaction
agreements. Such records are maintained on at least a monthly basis, or
such other period specified in the transaction agreements, and describe
the entity’s activities in monitoring delinquent mortgage loans
including, for example, phone calls, letters and payment rescheduling
plans in cases where delinquency is deemed temporary (e.g., illness or
unemployment).
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(ix)

	 	Adjustments to interest rates or rates of return for mortgage loans
with variable rates are computed based on the related mortgage loan
documents.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(x)

	 	Regarding any funds held in trust for an obligor (such as escrow
accounts): (A) such funds are analyzed, in accordance with the obligor’s
mortgage loan documents, on at least an annual basis, or such other
period specified in the transaction agreements; (B) interest on such
funds is paid, or credited, to obligors in accordance with applicable
mortgage loan documents and state laws; and (C) such funds are returned
to the obligor within 30 calendar days of full repayment of the related
mortgage loans, or such other number of days specified in the
transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(xi)

	 	Payments made on behalf of an obligor (such as tax or insurance
payments) are made on or before the related penalty or expiration dates,
as indicated on the appropriate bills or notices for such payments,
provided that such support has been received by the servicer at least 30
calendar days prior to these dates, or such other number of days
specified in the transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(xii)

	 	Any late payment penalties in connection with any payment to be made
on behalf of an obligor are paid from the servicer’s funds and not
charged to the obligor, unless the late payment was due to the obligor’s
error or omission.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(xiii)

	 	Disbursements made on behalf of an obligor are posted within two
business days to the obligor’s records maintained by the servicer, or
such other number of days specified in the transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(xiv)

	 	Delinquencies, charge-offs and uncollectible accounts are
recognized and recorded in accordance with the transaction agreements.
	 	Yes
	 
	 	 	 	 
	1122(d)(4)(xv)

	 	Any external enhancement or other support, identified in Item
1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as
set forth in the transaction agreements.
	 	No

17

 

EXHIBIT B

TO SERVICING ASSESSMENT

Dated ___________, 200____

Re:           The [           ] agreement dated as of [     ], 200[ ] (the
“Agreement”), among [IDENTIFY PARTIES]

NONCOMPLIANCE DISCLOSURE

     The following are disclosures of AAMG noncompliance with the Servicing Criteria for the
Applicable Period:

[NONE, OR ITEMIZE IF APPLICABLE ]

18

 

EXHIBIT 11

FORM OF ANNUAL BACKUP CERTIFICATION

Re:      The [                    ] agreement dated as of [     ], 200[ ] (the “Agreement”),
among [IDENTIFY PARTIES]

I,                                         , the                               
           of [NAME OF SELLER] (the
“Company”), hereby certify to RWT Holdings, Inc, [DEPOSITOR] and [MASTER SERVICER], with the
knowledge and intent that they will rely upon this certification, that:

(1) I have reviewed the servicer compliance statement of Seller provided in accordance with Item
1123 of Regulation AB (the “Compliance Statement”), the report on assessment of Seller’s compliance
with the servicing criteria set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”),
provided in accordance with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as
amended (the “Exchange Act”) and Item 1122(a) of Regulation AB (the “Servicing Assessment”), the
registered public accounting firm’s attestation report provided in accordance with Rules 13a-18 and
15d-18 under the Exchange Act and Section 1122(b) of Regulation AB (the “Attestation Report”), and
all servicing reports and officer certificates related to the servicing of the Mortgage Loans
during 200___, that were delivered pursuant to the Agreement (collectively, the “Company Servicing
Information”);

(2) Based on my knowledge, the Company Servicing Information, taken as a whole, does not contain
any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made therein, in the ligh(t of the circumstances under which such statements were made,
not misleading with respect to the period of time covered by Company Servicing Information;

(3) Based on my knowledge, all of the Company Servicing Information required to be provided by the
Company under the Agreement has been provided to the [DEPOSITOR], [MASTER SERVICER][SECURITIES
ADMINISTRATOR][TRUSTEE];

(4) I am responsible for reviewing the activities performed by Seller as servicer under the
Agreement, and based on my knowledge and the compliance review conducted in preparing the
Compliance Statement, and except as disclosed in the Compliance Statement, the Servicing Assessment
or the Attestation Report, Seller has fulfilled its obligations under the Agreement in all material
respects; and

(5) The Compliance Statement required to be delivered by Seller pursuant to the Agreement, and the
Servicing Assessment and Attestation Report required to be provided by Seller and by any
Subservicer and Subcontractor pursuant to the Agreement, have been provided to

19

 

[DEPOSITOR][MASTER SERVICER]. Any material instances of noncompliance with the Agreement and any
Reconstitution Agreement and any material instances of noncompliance with the Servicing Criteria
have been disclosed in such reports.

	 	 	 	 	 	 	 	 	 
	ABN AMRO MORTGAGE GROUP, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Title:

	 	 	 	Date:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 

20

 

ABN AMRO -RWT TO SEQUOIA

ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

For

Master Mortgage Loan Sale & Servicing Agreement

     THIS ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT, dated as of August 30, 2006 (the
“Assignment”), is entered into among RWT Holdings, Inc. (the “Assignor”), Sequoia Residential
Funding, Inc. (the “Assignee”) and ABN AMRO Mortgage Group, Inc., as the seller and the servicer
(the “Company”).

RECITALS

WHEREAS, the Assignor and the Company have entered into a certain Master Mortgage Loan Sale &
Servicing Agreement, dated as of July 1, 2006 (the “Master Mortgage Loan and Servicing
Agreement”), and pursuant to the Master Mortgage Loan and Servicing Agreement Assignor acquired
from the Company certain Mortgage Loans (the “Specified Mortgage Loans”) which are listed on the
mortgage loan schedule attached as Exhibit I hereto (the “Specified Mortgage Loan
Schedule”) and the Company agreed to service such Mortgage Loans; and

     WHEREAS, the Assignor has agreed to sell, assign and transfer to Assignee all of its right,
title and interest in the Specified Mortgage Loans and its rights under the Agreement with respect
to the Specified Mortgage Loans; and

     WHEREAS, the parties hereto have agreed that the Specified Mortgage Loans shall be subject to
the terms of this Assignment.

     NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties
agree as follows:

     1. Assignment and Assumption.

     (a) Effective on and as of the date hereof, the Assignor hereby sells, assigns and
transfers to the Assignee all of its right, title and interest in the Specified Mortgage Loans
and all of its rights and obligations provided under the Agreement to the extent relating to the
Specified Mortgage Loans, the Assignee hereby accepts such assignment from the Assignor, and the
Company hereby acknowledges such assignment and assumption.

          (b) Effective on and as of the date hereof, the Assignor represents and warrants to the
Assignee that the Assignor has not taken any action that would serve to

21

 

ABN AMRO -RWT TO SEQUOIA

impair or encumber the Assignee’s interest in the Specified Mortgage Loans since the date of the
Assignor’s acquisition of the Specified Mortgage Loans.

22

 

2. Recognition of the Assignee.

From and after the date hereof, the Company shall recognize the Assignee as the holder of the
rights and benefits of the Purchaser with respect to the Specified Mortgage Loans and the
Company will service the Specified Mortgage Loans for the Assignee pursuant to the Master
Mortgage Loan Sale and Servicing Agreement, which is incorporated herein, as amended hereby,
with the Assignee as Purchaser thereunder. It is the intention of the parties hereto that this
Assignment will be binding upon and for the benefit of the respective successors and assigns of
the parties hereto.

3. Representations and Warranties.

     (a) The Assignee represents and warrants that it is a sophisticated investor able to
evaluate the risks and merits of the transactions contemplated hereby, and that it has not
relied in connection therewith upon any statements or representations of the Company or the
Assignor other than those contained in the Agreement or this Assignment.

     (b) The Assignee represents and warrants to, and covenants with, Assignor and Company that
except for the provisions pertaining to the payment of the purchase price thereunder, from and
after the date hereof, Assignee agrees to be bound as “Purchaser” by all of the terms, covenants
and conditions of the Agreement and Assignee assumes for the benefit of Assignor and the Company
all of Assignor’s obligations as “Purchaser” thereunder.

     (c) Each of the parties hereto represents and warrants that it is duly and legally
authorized to enter into this Assignment.

     (d) Each of the parties hereto represents and warrants that this Assignment has been duly
authorized, executed and delivered by it and (assuming due authorization, execution and delivery
thereof by each of the other parties hereto) constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, except as such enforcement may
be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles (regardless of
whether such enforcement is considered in a proceeding in equity or at law).

4. Continuing Effect.

Except as contemplated hereby, the Agreement shall remain in full force and effect in accordance
with its terms. This Assignment constitutes a Reconstitution Agreement as defined in the Master
Mortgage Loan Sale and Servicing Agreement and the Reconstitution Date shall be the date hereof
with respect to the Specified Mortgage Loans listed on Exhibit I on the date hereof.

5. Governing Law.

This Assignment and the rights and obligations hereunder shall be governed by and construed in
accordance with the laws of the United States of America, and to the extent not preempted
thereby, the laws of the State of Michigan, without regard to the choice of law rules of
Michigan or any other jurisdiction.

23

 

6. Notices.

Any notices or other communications permitted or required under the Agreement to be made to the
Assignor and Assignee shall be made in accordance with the terms of the Agreement and shall be
sent to the Assignor and Assignee as follows:

	 	 	 	 	 
	If to the Assignor:
	 	 	 	 
	 

	 	RWT Holdings, Inc.	 	 
	 

	 	One Belvedere Place, Suite 310	 	 
	 

	 	Mill Valley, CA 94941	 	 
	 
	 	 	 	 
	          If to the Assignee:
	 	 	 	 
	 
	 	 	 	 
	 

	 	Sequoia Residential Funding, Inc.	 	 
	 

	 	One Belvedere Place, Suite 330	 	 
	 

	 	Mill Valley, CA 94941	 	 

or to such other address as may hereafter be furnished by the Assignor or Assignee to the other
parties in accordance with the provisions of the Agreement.

7. Counterparts.

This Assignment may be executed in counterparts, each of which when so executed shall be deemed
to be an original and all of which when taken together shall constitute one and the same
instrument.

8. Definitions.

Any capitalized term used but not defined in this Assignment has the same meaning as in the
Agreement.

[remainder of page intentionally left blank]

24

 

IN WITNESS WHEREOF, the parties hereto have executed this Assignment the day and year first
above written.

	 	 	 	 	 	 	 
	 	 	ASSIGNOR:	 	 
	 
	 	 	 	 	 	 
	 	 	RWT HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE:	 	 
	 
	 	 	 	 	 	 
	 	 	SEQUOIA RESIDENTIAL FUNDING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	ABN AMRO MORTGAGE GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

25

 

EXHIBIT I

 

 

ABN AMRO — SEQUOIA TO TRUSTEE

ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

For

Master Mortgage Loan Sale and Servicing Agreement

     THIS ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT, dated as of August 30, 2006 (the
“Assignment”), is entered into among Sequoia Residential Funding, Inc. (the “Assignor”), ABN AMRO
Mortgage Group, Inc., Inc., as the seller and servicer (the “Company”), and HSBC Bank USA, National
Association (“HSBC Bank”) as Trustee under a Pooling and Servicing Agreement dated as of August 1,
2006 (the “Pooling and Servicing Agreement”), among the Assignor, as Depositor, HSBC Bank (in such
Trustee capacity, the “Assignee”) and Wells Fargo Bank, N. A., as Master Servicer and Securities
Administrator.

RECITALS

WHEREAS, RWT Holdings, Inc. (“RWT”) and the Company have entered into a certain Master Mortgage
Loan Sale & Servicing Agreement, dated as of July 1, 2006 (the “Master Mortgage Loan Sale and
Servicing Agreement”), and pursuant to the Master Mortgage Loan Sale and Servicing Agreement RWT
has acquired from the Company certain Mortgage Loans (the “Mortgage Loans”) and the Company has
agreed to service such Mortgage Loans; and

     WHEREAS, RWT has previously sold, assigned and transferred all of its right, title and
interest in certain of the Mortgage Loans (the “Specified Mortgage Loans”) which are listed on the
mortgage loan schedule attached as Exhibit I hereto (the “Specified Mortgage Loan
Schedule”) and certain rights under the Agreement with respect to the Specified Mortgage Loans to
Assignor; and

     WHEREAS, the parties hereto have agreed that the Specified Mortgage Loans shall be subject to
the terms of this Assignment.

     NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties
agree as follows:

     1. Assignment and Assumption.

          (a) Effective on and as of the date hereof, the Assignor hereby pledges, assigns and transfers
to the Assignee all of its right, title and interest in the Specified Mortgage Loans and all of its
rights (but none of the Purchaser’s obligations) provided under the Agreement to the extent
relating to the Specified Mortgage Loans, the Assignee hereby accepts such assignment from the
Assignor, and the Company hereby acknowledges such assignment and assumption.

2

 

          (b) Effective on and as of the date hereof, the Assignor represents and warrants to the
Assignee that the Assignor has not taken any action that would serve to impair or encumber the
Assignee’s interest in the Specified Mortgage Loans since the date of the Assignor’s acquisition
of the Specified Mortgage Loans.

2. Recognition of the Asslignee.

From and after the date hereof, subject to Section 3 below, the Company shall recognize the
Assignee as the holder of the rights and benefits of the Purchaser with respect to the Specified
Mortgage Loans and the Company will service the Specified Mortgage Loans for the Assignee
pursuant to the Master Mortgage Loan Sale and Servicing Agreement, which is incorporated herein,
as amended hereby, with the Assignee as Purchaser thereunder. It is the intention of the
parties hereto that this Assignment will be binding upon and for the benefit of the respective
successors and assigns of the parties hereto.

3. Assignor’s Continuing Rights and Responsibilities.

Notwithstanding Sections 1 and 2 above, the parties hereto agree that the Assignor rather than
the Assignee shall have the ongoing rights to take action and the responsibilities of the
Purchaser under the following sections of the Agreement:

     Master Mortgage Loan Sale and Servicing Agreement:

	 	 	 
	Section	 	Matter
	6.03, 1st and
2nd ¶’s

	 	(a) Remedies for Breach of
Representations and Warranties.
	 
	 	 
	6.05

	 	(b) Early Payment Default.
	 
	 	 
	11.01, 2nd ¶

	 	(c) Seller to Act as Servicer.
	 
	 	 
	11.02

	 	(d) Liquidation of Mortgage Loans.
	 
	 	 
	11.13, 3rd ¶

	 	(e) Title, Management and Disposition of REO Property.
	 
	 	 
	11.18

	 	(f) Assumption Agreements.
	 
	 	 
	11.22

	 	(g) Seller Shall Provide Access and Information as
Reasonably Required.

3

 

	 	 	 
	Section	 	Matter
	12.01

	 	(h) Indemnification; Third Party Claims.
	 
	 	 
	12.04

	 	(i) Seller Not to Resign.

4

 

In addition, the Company agrees to furnish to the Assignor as well as the Assignee copies of
reports, notices, statements and other communications required to be delivered by the Company
pursuant to any of the sections of the Agreement referred to above and under the following
sections, at the times therein specified:

     Master Mortgage Loan Sale and Servicing Agreement:

	 	 	 
	Section	 	 
	11.09

	 	(a) Transfer of Accounts.
	11.16

	 	(b) Statements to Purchaser.
	11A.04

	 	(c) Servicer Compliance Statement.
	11A.05

	 	(d) Report on Assessment of Compliance and Attestation.

     4. Amendments to the Agreement.

     The Agreement is hereby amended as set forth in Appendix A hereto with respect to
the Specified Loans.

     5. Representations and Warranties.

     (a) The Assignee represents and warrants that it is a sophisticated investor able to
evaluate the risks and merits of the transactions contemplated hereby, and that it has not
relied in connection therewith upon any statements or representations of the Company or the
Assignor other than those contained in the Agreement or this Assignment.

     (b) Each of the parties hereto represents and warrants that it is duly and legally
authorized to enter into this Assignment.

     (c) Each of the parties hereto represents and warrants that this Assignment has been duly
authorized, executed and delivered by it and (assuming due authorization, execution and delivery
thereof by each of the other parties hereto) constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, except as such enforcement may
be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles (regardless of
whether such enforcement is considered in a proceeding in equity or at law).

5

 

6. Continuing Effect.

Except as contemplated hereby, the Agreement shall remain in full force and effect in accordance
with its terms. This Assignment constitutes a Reconstitution Agreement as defined in the Master
Mortgage Loan Sale and Servicing Agreement and the Reconstitution Date shall be the date hereof
with respect to the Specified Mortgage Loans listed on Exhibit I on the date hereof.

7. Governing Law.

This Assignment and the rights and obligations hereunder shall be governed by and construed in
accordance with the laws of the United States of America, and to the extent not preempted
thereby, the laws of the State of Michigan, without regard to the choice of law rules of
Michigan or any other jurisdiction.

8. Notices.

Any notices or other communications permitted or required under the Agreement to be made to the
Assignor and Assignee shall be made in accordance with the terms of the Agreement and shall be
sent to the Assignor and Assignee as follows:

	 	 	 	 	 
	If to the Assignor:

	 	 	 	 
	 

	 	Sequoia Residential Funding, Inc.	 	 
	 

	 	One Belvedere Place, Suite 330	 	 
	 

	 	Mill Valley, CA 94941	 	 
	 
	 	 	 	 
	     If to the Assignee:
	 	 	 	 
	 

	 	HSBC Bank USA, National Association	 	 
	 

	 	452 Fifth Avenue	 	 
	 

	 	New York, NY 10018	 	 

or to such other address as may hereafter be furnished by the Assignor or Assignee to the other
parties in accordance with the provisions of the Agreement.

9. Counterparts.

This Assignment may be executed in counterparts, each of which when so executed shall be deemed
to be an original and all of which when taken together shall constitute one and the same
instrument.

10. Definitions.

Any capitalized term used but not defined in this Assignment has the same meaning as in the
Agreement.

6

 

11. Master Servicer.

     The Company hereby acknowledges that the Assignee has appointed Wells Fargo Bank, N. A. (the
“Master Servicer”) to act as master servicer under the Pooling and Servicing Agreement and hereby
agrees to treat all inquiries, instructions, authorizations and other communications from the
Master Servicer as if the same had been received from the Assignee. The Master Servicer, acting on
behalf of the Assignee, shall have the rights of the Assignee as the Purchaser under the Agreement
to enforce the obligations of the Company thereunder. Any notices or other communications
permitted or required under the Agreement to be made to the Assignee shall be made in accordance
with the terms of the Agreement and shall be sent to the Master Servicer at the following address:

Wells Fargo Bank, N. A.

P.O. Box 98

Columbia, Maryland 21046

(or, for overnight deliveries, 9062 Old Annapolis Road, Columbia, Maryland 21045)

Attention: Sequoia Mortgage Trust 2006-1

or to such other address as may hereafter be furnished by the Master Servicer to the Company.
Any such notices or other communications permitted or required under the Agreement may be
delivered in electronic format unless manual signature is required in which case a hard copy of
such report or communication shall be required.

     11. Successors and Assigns.

     Upon a transfer of the Specified Mortgage Loans by the Assignee (other than in respect of
repurchases pursuant to Section 5.03 or Section 6.03 of the Agreement) to a buyer (“buyer”),
such transfer shall constitute a Reconstitution subject to the terms of Section 11.24 of the
Agreement. Upon the closing of such transfer, the rights and obligations of the Purchaser
retained by the Assignor pursuant to this Assignment shall automatically terminate and the buyer
shall be deemed to possess all of the rights and obligations of the Purchaser under the
Agreement, provided, however, that the Assignor shall remain liable for any obligations as
Purchaser arising from or attributable to the period from the date hereof to the closing date of
such transfer.

[remainder of page intentionally left blank]

7

 

IN WITNESS WHEREOF, the parties hereto have executed this Assignment the day and year first
above written.

	 	 	 	 	 	 	 
	 	 	ASSIGNOR:	 	 
	 
	 	 	 	 	 	 
	 	 	SEQUOIA RESIDENTIAL FUNDING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE:	 	 
	 
	 	 	 	 	 	 
	 	 	HSBC BANK USA, NATIONAL	 	 
	 	 	ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	ABN AMRO MORTGAGE GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

8

 

EXHIBIT I

 

 

EXHIBIT II

 

 

APPENDIX A

     1. Item (i) in the definition of “Eligible Account” in SECTION 1 of the Agreement is hereby
deleted in its entirety and replaced with the following:

     “Eligible Account: Any of (i) an account or accounts maintained with a federal or
state chartered depository institution or trust company the short-term unsecured debt obligations
of which (or, in the case of a depository institution or trust company that is the principal
subsidiary of a holding company, the debt obligations of such holding company) have the highest
short-term ratings of each Rating Agency at the time any amounts held on deposit therein,”

     2. The definition of “Business Day” in Section 1 of the Agreement is hereby deleted in its
entirety and replaced with the following:

“Business Day: Any day other than a Saturday or Sunday, or a day on which banking
and savings and loan institutions in (i) Maryland or Minnesota, (ii) in the state where the
Company is located or (iii) in the state where the Custodial Account is maintained, are
authorized or obligated by law or executive order to be closed.”

     3. The definition of “Master Servicer” in Section 1 of the Agreement is hereby deleted in its
entirety and replaced with the following:

“Master Servicer: Wells Fargo Bank, National Association, or its successors in
interest.”

     4. The definition of “Servicing Fee Rate” is hereby deleted in its entirety and replaced with
the following:

     “Servicing Fee Rate: The per annum rate at which the Servicing Fee accrues, which
rate with respect to each Serviced Loan is 0.375%.”

     5. Section 6.01 of the Agreement is hereby modified by adding the following:

“(zz) No Mortgage Loan was originated on or after October 1, 2002 and prior to March 7,
2003, which is secured by property located in the State of Georgia. No Mortgage Loan was
originated on or after March 7, 2003 which is a “high cost home loan” as defined under the
Georgia Fair Lending Act, which became effective October 1, 2002.

(aaa) No Mortgage Loan contains prepayment penalties that extend beyond five years after
the date of origination.”

     6. Section 13.01(a) of the Agreement is hereby modified by deleting the words “five (5)
Business Days” and replacing them with the words “one (1) Business Day” .

 

 

7. A new Section 31 is hereby added to the Agreement as follows:

     “SECTION 31. Monthly Reports. On or before the tenth (10th) calendar day of
each month, the Company shall furnish to the Master Servicer, in mutually agreeable
electronic format and as to the latest Due Period, the monthly remittance information, the
delinquency and default information and the realized loss information.. The information to
be provided in each case shall be in such forms as the parties have previously agreed upon,
which forms are attached hereto as Exhibit 1, or as the parties may hereafter agree upon.”

 

 

EXHIBIT 1

					
	P3301-139
	 	A B N  A M R O
 M O R T G A G E  G R O U P
	 	07/31/06
	 
	 	MONTHLY STATEMENT OF MORTGAGE ACCOUNTS
	 	PAGE 39203

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	REDWOOD TRUST	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ATTN: ALEX ILNICKI	 	 	 	INTEREST RATE	 	.0000000	 	SERVICE FEE	 	.00000000	 	STATE	 	 
	ONE BELVEDERE PLACE	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SUITE 300	 	INVESTOR S20	 	CATEGORY 001	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	INVESTOR	 	INVESTOR	 	SHORT	 	DUE	 	NEXT	 	TRUST BAL/	 	PRINCIPAL	 	P&I	 	DELINQUENT	ADVANCE
	OUR LOAN NO	 	BANK CAT	 	LOAN NO	 	NAME	 	DATE	 	NO	INT PAID TO	BALANCE	 	CONSTANT	 	INTEREST	 	PRINCIPAL INTEREST	 	PRINCIPAL
	 	 	ANN INT	 	SF-RATE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 

 

					
	S3301-213
	 	A B N  A M R O
 M O R T G A G E  G R O U P
	 	07/31/06
	 
	 	SUMMARY OF CURTAILMENTS MADE REMITTANCE REPORT
	 	PAGE 8956

	 	 	 	 	 	 	 	 	 	 	 	 	 
	REDWOOD TRUST	 	 	 	 	 	 	 	 	 	 	 	 
	ATTN: ALEX ILNICKI	 	 	 	INTEREST RATE	 	.0000000	 	SERVICE FEE	 	.00000000	 	STATE
	ONE BELVEDERE PLACE	 	 	 	 	 	 	 	 	 	 	 	 
	SUITE 300	 	INVESTOR S20	 	CATEGORY 001	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	INVESTOR	 	DATE	 	PMT	 	 	 	 	 	SERVICE	 	NET	 	DEPOSITED	 	PRINCIPAL	 	LATE	 	OTHER
	OUR LOAN NO	 	LOAN NO	 	PAID	 	NO	 	ESCROW	 	PRINCIPAL INTEREST	 	FEE	 	INTEREST	 	/REMITTED	 	BALANCE	 	CHG	 	TRUST
	P&I CONSTANT	 	ANN I/R	SF RATE	DATE DUE	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 

 

					
	S3301-215
	 	A B N  A M R O
 M O R T G A G E  G R O U P
	 	07/31/06
	 
	 	CONSOLIDATION OF REMITTANCE REPORTS
	 	PAGE26046

	 	 	 	 	 	 	 	 	 	 	 	 	 
	REDWOOD TRUST	 	 	 	 	 	 	 	 	 	 	 	 
	ATTN: ALEX ILNICKI	 	 	 	INTEREST RATE .00000000	 	SERVICE FEE .00000000	 	STATE	 	 	 	 
	ONE BELVEDERE PLACE	 	 	 	 	 	 	 	 	 	 	 	 
	SUITE 300	 	INVESTOR S20	 	CATEGORY 001	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	OUR	 	INVESTOR	 	DATE	 	PMT	 	DATE	 	 	 	 	 	 	 	SERVICE	 	NET	 	DEPOSITED	 	PRINCIPAL	 	LATE	 	OTHER
	LOAN NO	 	LOAN NO	 	PAID	 	NO	 	DUE	 	ESCROW	 	PRINCIPAL INTEREST	 	FEE	 	INTEREST	 	/REMITTED	 	BALANCE	 	CHG	 	TRUST
	P&I CONSTANT	ANN INT RATE	SER FEE RATE	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 

 

	 	 	 	 	 
	 	 	REVISED
	 
	Remittance Summary	 	Inv
S20 WELLS FARGO
	 	 	(Issue
ID)

	 	 	8/15/2006
	Beginning Scheduled Principal Balance
	 	 	 	 
	 
	 	 	 	 
	 
	Principal
	 	 	 	 
	 
	Scheduled Principal
	 	 	 	 
	 
	 	 	 	 
	 
	Unscheduled Principal
	 	 	 	 
	 
	 	 	 	 
	 
	Total Principal
	 	 	0.00	 
	 
	 	 	 	 
	 
	Ending Scheduled Principal Balance
	 	 	0.00	 
	 
	 	 	 	 
	 
	Interest

	 	 	 	 
	 
	Net Interest
	 	 	 	 
	 
	 	 	 	 
	 
	Wire
Reconciliation
	 	 	 	 
	 
	Total Principal
	 	 	0.00	 
	 
	 	 	 	 
	 
	Net Interest
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Total Wire:
	 	 	0.00exv10w6

 

Exhibit 10.6

The following are excerpts of the relevant servicing provisions of:

MORTGAGE LOAN PURCHASE AND SERVICING AGREEMENT

This MORTGAGE LOAN PURCHASE AND SERVICING AGREEMENT is made and entered into as of April 1, 1998
(the “Agreement”), between COUNTRYWIDE HOME LOANS, INC., a New York corporation, having an address
at 4500 Park Granada, Calabasas, California 91302 (“Countrywide”), and RWT HOLDINGS, INC., having
an address at 591 Redwood Highway, Suite 3140, Mill Valley, California 94941 (“Purchaser”).

 ARTICLE I

DEFINITIONS

          Unless the context requires otherwise, all capitalized terms used herein shall have the
meanings assigned to such terms in this Article I unless defined elsewhere herein. Any capitalized
term used or defined in a Purchase Confirmation that conflicts with the corresponding definition
set forth herein shall supersede such term.

          Adjustable Rate Mortgage Loan: Any Mortgage Loan in which the related Mortgage Note
contains a provision whereby the Mortgage Interest Rate is adjusted from time to time in accordance
with the terms of such Mortgage Note.

          Agency: Either FNMA or FHLMC.

          Agreement: This Mortgage Loan Purchase and Servicing Agreement including all
amendments hereof and supplements hereto.

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

          Balloon Mortgage Loan: Any Mortgage Loan wherein the Mortgage Note matures prior to
full amortization and requires a final and accelerated payment of principal.

          Business Day: Any day other than (i) a Saturday or Sunday, or (ii) a day on which
banking and savings and loan institutions in the State of California are authorized or obligated by
law or executive order to be closed.

          Cash Liquidation: Recovery of all cash proceeds by Countrywide with respect to the
termination of any defaulted Mortgage Loan other than a Mortgage Loan which became an REO Property,
including all PMI Proceeds, Other Insurance Proceeds, Liquidation Proceeds, Condemnation Proceeds
and other payments or recoveries whether made at one time or over a period of time which
Countrywide deems to be finally recoverable, in connection with the sale or assignment of such
Mortgage Loan, trustee’s sale, foreclosure sale or otherwise.

          Closing: The consummation of the sale and purchase of each Mortgage Loan Package.

          Closing Date: The date on which the purchase and sale of the Mortgage Loans
constituting a Mortgage Loan Package is consummated, as set forth in the Trade Confirmation and
Purchase Confirmation.

          Collateral Documents: The collateral documents pertaining to each Mortgage Loan as set
forth in Exhibit A hereto.

          Collateral File: With respect to each Mortgage Loan, a file containing each of the
Collateral Documents.

 

 

          Condemnation Proceeds: All awards or settlements in respect of a taking of an entire
Mortgaged Property by exercise of the power of eminent domain or condemnation.

          Convertible Mortgage Loan: Any Adjustable Rate Mortgage Loan that contains a
provision whereby the Mortgagor is permitted to convert the Mortgage Loan to a fixed-rate mortgage
loan in accordance with the terms of the related Mortgage Note.

          Countrywide: Countrywide Home Loans, Inc., or any successor or assign to Countrywide
under this Agreement as provided herein.

          Credit File: The file retained by Countrywide that includes the mortgage loan
documents pertaining to a Mortgage Loan as set forth in Exhibit C including copies of the
Collateral Documents together with the credit documentation relating to the origination of such
Mortgage Loan, which Credit File may be maintained by Countrywide on microfilm or any other
comparable medium.

          Custodial Account: The account or accounts created and maintained pursuant to Section
4.04, each of which shall be an Eligible Account.

          Cut-off Date: The first day of the month in which the related Closing Date occurs or
such other date as may be set forth in the related Trade Confirmation and/or Purchase Confirmation.

          Determination Date: The 15th day of the month of the related Remittance Date or if
such 15th day is not a Business Day, the Business Day immediately following such 15th day.

          Due Date: The day of the month on which the Monthly Payment is due on a Mortgage
Loan, exclusive of any days of grace.

          Due Period: With respect to each Remittance Date, the period commencing on the second
day of the month preceding the month of the Remittance Date and ending on the first day of the
month of the Remittance Date.

          Eligible Account: An account or accounts (i) maintained with a depository institution
the short term debt obligations of which are rated by Standard & Poor’s, a division of McGraw-Hill
companies, in one of its two (2) highest rating categories at the time of any deposit therein,
(ii) the deposits of which are fully insured by the FDIC, or (iii) maintained with an institution
and in a manner acceptable to an Agency.

          Escrow Account: The separate trust account or accounts created and maintained
pursuant to Section 4.06, each of which shall be an Eligible Account.

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

          Event of Default: Any one of the conditions or circumstances enumerated in Section
7.01.

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

          FHLMC: The Federal Home Loan Mortgage Corporation or any successor organization.

          Fidelity Bond: A fidelity bond to be maintained by Countrywide pursuant to Section
4.12 .

          Fixed Rate Mortgage Loan: Any Mortgage Loan wherein the Mortgage Interest Rate set
forth in the Mortgage Note is fixed for the term of such Mortgage Loan.

          FNMA: The Federal National Mortgage Association or any successor organization.

          Interest Adjustment Date: With respect to an Adjustable Rate Mortgage Loan, the date
on which an adjustment to the Mortgage Interest Rate on a Mortgage Note becomes effective.

2

 

          Late Collections: With respect to any Mortgage Loan, all amounts received during any
Due Period, whether as late payments of Monthly Payments or as Liquidation Proceeds, Condemnation
Proceeds, PMI Proceeds, Other Insurance Proceeds, proceeds of any REO Disposition or otherwise,
which represent late payments or collections of Monthly Payments due but delinquent for a previous
Due Period and not previously recovered.

          Liquidation Proceeds: Amounts, other than PMI Proceeds, Condemnation Proceeds and
Other Insurance Proceeds, received by Countrywide in connection with the liquidation of a defaulted
Mortgage Loan through trustee’s sale, foreclosure sale or otherwise, other than amounts received
following the acquisition of an REO Property pursuant to Section 4.13 .

          LTV: With respect to any Mortgage Loan, the ratio (expressed as a percentage) of the
Stated Principal Balance (or the original principal balance, if so indicated) of such Mortgage Loan
as of the date of determination to the Appraised Value of the related Mortgaged Property.

          LPMI Fee: The portion of the Mortgage Interest Rate relating to an LPMI Loan, which
is set forth on the related Mortgage Loan Schedule, to be retained by Countrywide to pay the
premium due on the PMI Policy with respect to such LPMI Loan.

          LPMI Loan: Any Mortgage Loan with respect to which Countrywide is responsible for
paying the premium due on the related PMI Policy with the proceeds generated by the LPMI Fee
relating to such Mortgage Loan, as set forth on the related Mortgage Loan Schedule.

          Monthly Advance: The advances made or required to be made by Countrywide on any
Remittance Date pursuant to Section 5.03.

          Monthly Payment: The scheduled monthly payment of principal and interest on a
Mortgage Loan.

          Mortgage: The mortgage, deed of trust or other instrument securing a Mortgage Note,
which creates a first lien on an unsubordinated estate in fee simple in real property securing the
Mortgage Note or a first lien upon a leasehold estate of the Mortgagor, as the case may be.

          Mortgage Interest Rate: The annual rate at which interest accrues on any Mortgage
Loan and, with respect to an Adjustable Rate Mortgage Loan, as adjusted from time to time in
accordance with the provisions of the related Mortgage Note.

          Mortgage Loan: Any mortgage loan that is sold pursuant to this Agreement, as
evidenced by such mortgage loan’s inclusion on the related Mortgage Loan Schedule, which mortgage
loan includes the Credit File, the Monthly Payments, Principal Prepayments, Liquidation Proceeds,
Condemnation Proceeds, PMI Proceeds (if applicable), Other Insurance Proceeds, REO Disposition
proceeds, and all other rights, benefits, proceeds and obligations arising from or in connection
with such Mortgage Loan, excluding the servicing rights relating thereto. Unless the context
requires otherwise, any reference to the Mortgage Loans in this Agreement shall refer to the
Mortgage Loans constituting a Mortgage Loan Package.

          Mortgage Loan Package: The Mortgage Loans sold to Purchaser pursuant to a Purchase
Confirmation.

          Mortgage Loan Remittance Rate: With respect to each Mortgage Loan, the interest rate
payable to Purchaser on each Remittance Date which shall equal the Mortgage Interest Rate less the
Servicing Fee and the LPMI Fee, if applicable.

          Mortgage Loan Schedule: With respect to each Mortgage Loan Package, the schedule of
Mortgage Loans included therein and made a part of the related Purchase Confirmation, which
schedule shall include, the following information with respect to each Mortgage Loan: (1)
Countrywide’s
Mortgage Loan identifying number; (2) the Mortgagor’s name; (3) the street address of the Mortgaged
Property including the city, state and zip code; (4) a code indicating whether the Mortgaged
Property is

3

 

owner-occupied; (5) the type of residential units constituting the Mortgaged Property
(i.e., detached single family, two-to-four-family, condominium units, etc.); (6) the original
months to maturity or the remaining months to maturity from the Cut-off Date, in any case based on
the original amortization schedule and, if different, the maturity expressed in the same manner but
based on the actual amortization schedule; (7) the Appraised Value of the Mortgaged Property and
the Loan-to-Value Ratio at origination; (8) the Mortgage Interest Rate as of the Cut-off Date; (9)
the date on which the initial Monthly Payment was due on the Mortgage Loan; (10) the stated
maturity date; (11) the original principal amount of the Mortgage Loan; (12) the principal balance
of the Mortgage Loan as of the close of business on the Cut-off Date, after deduction of payments
of principal due on or before the Cut-off Date whether or not collected; (13) with respect to any
Adjustable Rate Mortgage Loans, the Interest Adjustment Date; (14) with respect to any Adjustable
Rate Mortgage Loans, the Gross Margin; (15) a code indicating the purpose of the loan (i.e.,
purchase, rate and term refinance, equity take-out refinance); (16) with respect to any Adjustable
Rate Mortgage Loans, the maximum Mortgage Interest Rate under the terms of the Mortgage Note; (17)
with respect to any Adjustable Rate Mortgage Loans, the Periodic Rate Cap; (18) the Servicing Fee
Rate; (19) a code indicating the documentation style (i.e., full, alternative, reduced or
streamlined); (20) the Pool Insurance Certificate number if applicable; (21) a code indicating
whether the Mortgage Loan is secured by the Mortgagor’s primary residence; and (22) the pay-to
date. With respect to the Mortgage Loans in the aggregate, the Mortgage Loan Schedule shall set
forth the following information, as of the Cut-off Date: (1) the number of Mortgage Loans; (2) the
current principal balance of the Mortgage Loans; (3) the weighted average Mortgage Interest Rate of
the Mortgage Loans; and (4) the weighted average maturity of the Mortgage Loans.

          Mortgage Note: The note or other evidence of the indebtedness of a Mortgagor secured
by a Mortgage.

          Mortgaged Property: The real property (or leasehold estate, if applicable) securing
repayment of the debt evidenced by a Mortgage Note.

          Mortgagee: The mortgagee or beneficiary named in the Mortgage and the successors and
assigns of such mortgagee or beneficiary.

          Mortgagor: The obligor on a Mortgage Note.

          Officer’s Certificate: A certificate signed by the Chairman or Vice Chairman of the
Board of Directors of Countrywide or a president, vice president, treasurer, secretary, assistant
treasurer, or assistant secretary of Countrywide.

          Opinion of Counsel: A written opinion of counsel, who may be an employee of the party
on behalf of whom the opinion is being given, reasonably acceptable to Purchaser.

          Other Insurance Proceeds: Proceeds of any title policy, hazard policy, pool policy or
other insurance policy covering a Mortgage Loan, other than the PMI Policy, if any, to the extent
such proceeds are not to be applied to the restoration of the related Mortgaged Property or
released to the Mortgagor in accordance with the procedures that Countrywide would follow in
servicing mortgage loans held for its own account.

          Payment Adjustment Date: As to each Mortgage Loan, the date on which an adjustment to
the Monthly Payment on a Mortgage Note becomes effective.

          Periodic Rate Cap: With respect to each Adjustable Rate Mortgage Loan, the provision
of each Mortgage Note which provides for an absolute maximum amount by which the Mortgage Interest
Rate therein may increase or decrease on an Adjustment Date above the Mortgage Interest Rate
previously in effect, equal to the rate set forth on the Mortgage Loan Schedule per adjustment.

          Person: Any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization or government or any agency or political
subdivision thereof.

     Prepayment Interest Shortfall Amount: With respect to any Mortgage Loan that was
subject to a Principal Prepayment in full or in part during any Due Period, which Principal
Prepayment

4

 

was applied to such Mortgage Loan prior to such Mortgage Loan’s Due Date in such Due
Period, the amount of interest (at the Mortgage Loan Remittance Rate) that would have accrued on
the amount of such Principal Prepayment during the period commencing on the date as of which such
Principal Prepayment was applied to such Mortgage Loan and ending on the day immediately preceding
such Due Date, inclusive.

          PMI Policy: A policy of private mortgage guaranty insurance relating to a Mortgage
Loan and issued by a Qualified Insurer.

          PMI Proceeds: Proceeds of any PMI Policy.

          Principal Prepayment: Any payment or other recovery of principal on a Mortgage Loan
which is received in advance of its scheduled Due Date, excluding any prepayment penalty or premium
thereon (unless the Purchase Confirmation provides otherwise), which is not accompanied by an
amount of interest representing scheduled interest due on any date or dates in any month or months
subsequent to the month of prepayment.

          Principal Prepayment Period: As to any Remittance Date, the calendar month preceding
the month of distribution.

          Purchase Confirmation: The letter agreement, substantially in the form of Exhibit
B hereto, executed by Countrywide and Purchaser in connection with the purchase and sale of
each Mortgage Loan Package, which sets forth the terms relating thereto including a description of
the related Mortgage Loans (including the Mortgage Loan Schedule), the purchase price for such
Mortgage Loans, the Closing Date and the Servicing Fee Rate.

          Purchaser: The Person identified as the “Purchaser” in the preamble to this Agreement
or its successor in interest or any successor or assign to Purchaser under this Agreement as herein
provided. Any reference to “Purchaser” as used herein shall be deemed to include any designee of
Purchaser.

          Qualified Insurer: An insurance company duly qualified as such under the laws of the
states in which the Mortgaged Properties are located, duly authorized and licensed in such states
to transact the applicable insurance business and to write the insurance provided, which insurer is
approved in such capacity by an Agency and whose claims paying ability is rated in the two highest
rating categories by any Rating Agency with respect to primary mortgage insurance and in the two
highest rating categories by Best’s with respect to hazard and flood insurance.

          Qualified Substitute Mortgage Loan: A mortgage loan that must, on the date of such
substitution, (i) have an unpaid principal balance, after deduction of all scheduled payments due
in the month of substitution (or if more than one (1) mortgage loan is being substituted, an
aggregate principal balance), not in excess of the unpaid principal balance of the repurchased
Mortgage Loan (the amount of any shortfall will be deposited in the Custodial Account by
Countrywide in the month of substitution); (ii) have a Mortgage Interest Rate not less than, and
not more than 1% greater than, the Mortgage Interest Rate of the repurchased Mortgage Loan; (iii)
have a remaining term to maturity not greater than, and not more than one year less than, the
maturity date of the repurchased Mortgage Loan; (iv) comply with each representation and warranty
(respecting individual Mortgage Loans) set forth in Section 3.02 hereof; (v) shall be the same type
of Mortgage Loan (i.e., a Convertible Mortgage Loan or a Fixed Rate Mortgage Loan).

          Rating Agency: Duff & Phelps, Fitch, Moody’s or Standard & Poor’s, or their
respective successors.

          Remittance Date: The eighteenth (18th) day of any month, beginning with the month
next following the month in which the related Cut-off Date occurs, or if such eighteenth (18th) day
is not a Business Day, the first Business Day immediately following.

          REO Account: The account created and maintained pursuant to Section 4.13, which
account shall be an Eligible Account.

5

 

          REO Disposition: The final sale by Countrywide of any REO Property or the transfer of
the management of such REO Property to Purchaser as set forth in Section 4.13.

          REO Property: A Mortgaged Property acquired by Countrywide on behalf of Purchaser as
described in Section 4.13.

          Servicing Advances: All customary, reasonable and necessary “out of pocket” costs and
expenses incurred in the performance by Countrywide of its servicing obligations, including the
cost of (i) the preservation, restoration and protection of the Mortgaged Property, (ii)
any enforcement or judicial proceedings, including foreclosures, (iii) the management and
liquidation of the REO Property, and (iv) compliance with the obligations under this Agreement
including Section 4.09.

          Servicing Fee: With respect to each Mortgage Loan, the amount of the annual fee
Purchaser shall pay to Countrywide, which shall, for a period of one full month, be equal to
one-twelfth of the product of (i) the Servicing Fee Rate and (ii) the Stated Principal Balance of
such Mortgage Loan. Such fee shall be payable monthly, computed on the basis of the same principal
amount and period respecting which any related interest payment on a Mortgage Loan is computed.
The obligation of Purchaser to pay the Servicing Fee is limited to, and the Servicing Fee is
payable solely from, the interest portion of such Monthly Payment collected by Countrywide, or as
otherwise provided herein. Subject to the foregoing, and with respect to each Mortgage Loan,
Countrywide shall be entitled to receive its Servicing Fee through the disposition of any related
REO Property and the Servicing Fee payable with respect to any REO Property shall be based on the
Stated Principal Balance of the related Mortgage Loan at the time of foreclosure.

          Servicing Fee Rate: With respect to any Mortgage Loan, the rate per annum set forth
in the applicable Trade Confirmation and/or the Purchase Confirmation.

          Stated Principal Balance: With respect to each Mortgage Loan as of any date of
determination: (i) the unpaid principal balance of the Mortgage Loan at the Cut-off Date after
giving effect to payments of principal due on or before such date, whether or not received, minus
(ii) all amounts previously distributed to Purchaser with respect to the related Mortgage Loan
representing payments or recoveries of principal or advances in lieu thereof.

          Trade Confirmation: A letter agreement executed by Countrywide and Purchaser prior to
the applicable Closing Date confirming the terms of a prospective purchase and sale of a Mortgage
Loan Package.

          Transaction Documents: The Trade Confirmation, the Purchase Confirmation and this
Agreement.

          Updated LTV: With respect to any Mortgage Loan, the outstanding principal balance of
such Mortgage Loan as of the date of determination divided by the value of the related Mortgaged
Property as determined by a recent appraisal of the Mortgaged Property.

ARTICLE II

RESERVED.

ARTICLE III

RESERVED.

ARTICLE IV

PRE-CLOSING AND CLOSING PROCEDURES

          Section 4.01
Countrywide to Act as Servicer Section 3.1  Countrywide to Act as
Servicer Section 3.1 Countrywide to Act as
Servicer Section 3.1 Countrywide to Act as

6

 

Servicer. Countrywide, as independent contract servicer, shall service and administer Mortgage
Loans sold pursuant to this Agreement in accordance with the terms of this Agreement and shall have
full power and authority, acting alone, to do or cause to be done any and all things, in connection
with such servicing and administration, that Countrywide may deem necessary or desirable and
consistent with the terms of this Agreement. In servicing and administering the Mortgage Loans,
Countrywide shall employ procedures in accordance with the customary and usual standards of
practice of prudent mortgage servicers.

          In accordance with the terms of this Agreement, Countrywide may waive, modify or vary any term
of any Mortgage Loan or consent to the postponement of strict compliance with any such term or in
any manner grant indulgence to any Mortgagor if in Countrywide’s reasonable and prudent
determination such waiver, modification, postponement or indulgence is not materially adverse to
Purchaser; provided, however, that Countrywide shall not permit any modification with respect to
any Mortgage Loan that would decrease the Mortgage Interest Rate (other than by adjustments
required by the terms of the Mortgage Note), result in the denial of coverage under a PMI Policy,
defer or forgive the payment of any principal or interest payments, reduce the outstanding
principal amount (except for actual payments of principal), make future advances or extend the
final maturity date on such Mortgage Loan without Purchaser’s consent. Countrywide may permit
forbearance or allow for suspension of Monthly Payments for up to one hundred and eighty (180) days
if the Mortgagor is in default or Countrywide determines in its reasonable discretion, that default
is imminent and if Countrywide determines that granting such forbearance or suspension is in the
best interest of Purchaser. If any modification, forbearance or suspension permitted hereunder
allows the deferral of interest or principal payments on any Mortgage Loan, Countrywide shall
include in each remittance for any month in which any such principal or interest payment has been
deferred (without giving effect to such modification, forbearance or suspension) an amount equal to
such month’s principal and one (1) month’s interest at the Mortgage Loan Remittance Rate on the
then unpaid principal balance of the Mortgage Loan and shall be entitled to reimbursement for such
advances only to the same extent as for Monthly Advances made pursuant to Section 5.03. Without
limiting the generality of the foregoing, Countrywide shall continue, and is hereby authorized and
empowered to execute and deliver on behalf of itself and Purchaser, all instruments of satisfaction
or cancellation, or of partial or full release, discharge and all other comparable instruments,
with respect to the Mortgage Loans and with respect to the Mortgaged Property. If reasonably
required by Countrywide, Purchaser shall furnish Countrywide with any powers of attorney and other
documents necessary or appropriate to enable Countrywide to carry out its servicing and
administrative duties under this Agreement.

          Section 4.02 Collection of Mortgage Loan Payments. Countrywide shall make reasonable
efforts, in accordance with the customary and usual standards of practice of prudent mortgage
servicers, to collect all payments due under each Mortgage Loan to the extent such procedures shall
be consistent with this Agreement, the terms and provisions of any related PMI Policy, MIC or LGC,
and applicable law.

          Section 4.03 Realization Upon Defaulted Mortgage Loans.

               (a) Foreclosure. Countrywide shall use reasonable efforts to foreclose upon or
otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as
come into and continue in default and as to which no satisfactory arrangements can be made for
collection of delinquent payments. Countrywide shall use reasonable efforts to realize upon
defaulted Mortgage Loans, in such manner as will maximize the receipt of principal and interest by
Purchaser, taking into account, among other things, the timing of foreclosure proceedings. The
foregoing is subject to the provisions that, in any case in which Mortgaged Property shall have
suffered damage, Countrywide shall not be required to expend its own funds toward the restoration
of such property unless it shall determine in its discretion (i) that such restoration will
increase the proceeds of liquidation of the related Mortgage Loan to Purchaser after reimbursement
to itself for such expenses, and (ii) that such expenses will be recoverable by Countrywide through
PMI Proceeds, Other Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property.
Countrywide shall notify Purchaser in writing of the commencement of foreclosure proceedings. Such
notice may be contained in the reports prepared by Countrywide and delivered to Purchaser pursuant
to the terms and conditions of this Agreement. Countrywide shall be responsible for all costs and
expenses incurred by it in any foreclosure proceedings; provided, however, that it shall be
entitled to reimbursement thereof from proceeds from the related Mortgaged Property.

7

 

               (b) Option to Purchase. Countrywide, in its sole discretion, shall have the right to
purchase for its own account any Mortgage Loan that is ninety-one (91) days or more delinquent at a
price equal to (i) the Stated Principal Balance of the Mortgage Loan plus (ii) accrued interest on
such Stated Principal Balance at the Mortgage Loan Remittance Rate from the date to which interest
has last been paid and distributed to Purchaser to the date of purchase; provided, however, that
Countrywide shall not be entitled to exercise such purchase if the delinquency is caused directly
or indirectly by an act or omission of Countrywide which would constitute a breach or violation of
its obligations hereunder. Any such purchase by Countrywide shall be accomplished by depositing in
the Custodial Account the amount of the purchase price stated in the preceding sentence, after
deducting therefrom any amounts received in respect of such purchased Mortgage Loan and being held
in the Custodial Account for future distribution.

          Section 4.04 Establishment of Custodial Accounts; Deposits in Custodial Accounts.
Countrywide shall segregate and hold all funds collected and received pursuant to each Mortgage
Loan separate and apart from any of its own funds and general assets and shall establish and
maintain one (1) or more Custodial Accounts, in the form of time deposit or demand accounts.
Countrywide shall provide Purchaser with written evidence of the creation of such Custodial
Account(s) upon the request of Purchaser.

          Countrywide shall deposit in the Custodial Account on a daily basis, and retain therein, the
following payments and collections received or made by it subsequent to the Cut-off Date, or
received by it prior to the Cut-off Date but allocable to a period subsequent thereto, other than
in respect of principal and interest on the Mortgage Loans due on or before the Cut-off Date:

               (a) all payments on account of principal, including Principal Prepayments, on the Mortgage
Loans;

               (b) all payments on account of interest on the Mortgage Loans, adjusted to the Mortgage Loan
Remittance Rate;

               (c) all proceeds from a Cash Liquidation;

               (d) all PMI Proceeds and Other Insurance Proceeds, including amounts required to be deposited
pursuant to Sections 4.08, 4.10 and 4.11, other than proceeds to be applied to the restoration or
repair of the Mortgaged Property or released to the Mortgagor in accordance with Countrywide’s
normal servicing procedures, the loan documents or applicable law;

               (e) all Condemnation Proceeds affecting any Mortgaged Property that are not released to the
Mortgagor in accordance with Countrywide’s normal servicing procedures, the loan documents or
applicable law;

               (f) all Monthly Advances;

               (g) all proceeds of any Mortgage Loan repurchased in accordance with Section 3.03 or 3.04, and
any amount required to be deposited by Countrywide in connection with any shortfall in principal
amount of the Qualified Substitute Mortgage Loans and the repurchased Mortgage Loans as required
pursuant to Section 3.03;

               (h) any amounts required to be deposited by Countrywide pursuant to Section 4.10 in connection
with the deductible clause in any blanket hazard insurance policy (such deposit shall be made from
Countrywide’s own funds, without reimbursement therefor);

               (i) the Prepayment Interest Shortfall Amount, if any, for the month of distribution (such
deposit shall be made from Countrywide’s own funds, without reimbursement therefor up to a maximum
amount per month equal to the aggregate Servicing Fee actually received for such month for the
Mortgage Loans); and

8

 

               (j) any amounts required to be deposited by Countrywide in connection with any REO Property
pursuant to Section 4.13.

               The foregoing requirements for deposit in the Custodial Account are exclusive. Purchaser
understands and agrees that, without limiting the generality of the foregoing, payments in the
nature of late payment charges, prepayment penalties and assumption fees (to the extent permitted
by Section 4.16) need not be deposited by Countrywide in the Custodial Account. Any interest paid
by the depository institution on funds deposited in the Custodial Account shall accrue to the
benefit of Countrywide and Countrywide shall be entitled to retain and withdraw such interest from
the Custodial Account pursuant to Section 4.05(d).

          Section 4.05 Permitted Withdrawals From the Custodial Account. Countrywide may, from
time to time, withdraw funds from the Custodial Account for the following purposes:

               (a) to make payments to Purchaser in the amounts and in the manner provided for in Section
5.01;

               (b) to reimburse itself for Monthly Advances (Countrywide’s reimbursement for Monthly Advances
shall be limited to amounts received on the related Mortgage Loan (or to amounts received on the
Mortgage Loans as a whole if the Monthly Advance is made due to a shortfall in a Monthly Payment
made by a Mortgagor entitled to relief under the Soldiers’ and Sailors’ Civil Relief Act of 1940)
which represent Late Collections, net of the related Servicing Fee and LPMI Fee, if applicable.
Countrywide’s right to reimbursement hereunder shall be prior to the rights of Purchaser, except
that, where Countrywide is required to repurchase a Mortgage Loan pursuant to Section 3.03 or 3.04,
Countrywide’s right to such reimbursement shall be subsequent to the payment to Purchaser of the
repurchase price and all other amounts required to be paid to Purchaser with respect to such
Mortgage Loans. Notwithstanding the foregoing, Countrywide may reimburse itself for Monthly
Advances from any funds in the Custodial Account if it has determined that such funds are
nonrecoverable advances or if all funds, with respect to the related Mortgage Loan, have previously
been remitted to Purchaser);

               (c) to reimburse itself for unreimbursed Servicing Advances and any unpaid Servicing Fees
(Countrywide’s reimbursement for Servicing Advances and/or Servicing Fees hereunder with respect to
any Mortgage Loan shall be limited to proceeds from Cash Liquidation, Liquidation Proceeds,
Condemnation Proceeds, PMI Proceeds and Other Insurance Proceeds; provided, however, that
Countrywide may reimburse itself for Servicing Advances and Servicing Fees from any funds in the
Custodial Account if all funds, with respect to the related Mortgage Loan, have previously been
remitted to Purchaser;

               (d) to pay to itself as servicing compensation (i) any interest earned on funds in the
Custodial Account (all such interest to be withdrawn monthly not later than each Remittance Date),
and (ii) the Servicing Fee and the LPMI Fee, if applicable, from that portion of any payment or
recovery of interest on a particular Mortgage Loan;

               (e) to pay to itself, with respect to each Mortgage Loan that has been repurchased pursuant to
Section 3.03 or 3.04, all amounts received but not distributed as of the date on which the related
repurchase price is determined;

               (f) to reimburse itself for any amounts deposited in the Custodial Account in error; and

               (g) to clear and terminate the Custodial Account upon the termination of this Agreement.

          Section 4.06 Establishment of Escrow Accounts; Deposits in Escrow Accounts.
Countrywide shall segregate and hold all funds collected and received pursuant to each Mortgage
Loan which constitute Escrow Payments separate and apart from any of its own funds and general
assets and shall establish and maintain one (1) or more Escrow Accounts in the form of time deposit
or demand accounts, which accounts shall be Eligible Accounts. Countrywide shall provide Purchaser
with written evidence of the creation of such Escrow Account(s) upon the request of Purchaser.

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          Countrywide shall deposit in the Escrow Account(s) on a daily basis, and retain therein, (a)
all Escrow Payments collected on account of the Mortgage Loans, and (b) all Other Insurance
Proceeds that are to be applied to the restoration or repair of any Mortgaged Property.
Countrywide shall make withdrawals therefrom only to effect such payments as are required under
this Agreement, and for such other purposes in accordance with Section 4.07. Countrywide shall be
entitled to retain any interest paid by the depository institution on funds deposited in the Escrow
Account except interest on escrowed funds required by law to be paid to the Mortgagor. Countrywide
shall pay Mortgagor interest on the escrowed funds at the rate required by law notwithstanding that
the Escrow Account is non-interest bearing or the interest paid by the depository institution
thereon is insufficient to pay the Mortgagor interest at the rate required by law.

          Section 4.07 Permitted Withdrawals From Escrow Account. Countrywide may, from time to
time, withdraw funds from the Escrow Account(s) for the following purposes: (a) to effect timely
payments of ground rents, taxes, assessments, water rates, mortgage insurance premiums, PMI Policy
premiums, if applicable, and comparable items; (b) to reimburse Countrywide for any Servicing
Advance made by Countrywide with respect to a related Mortgage Loan; provided, however, that such
reimbursement shall only be made from amounts received on the related Mortgage Loan that represent
late payments or collections of Escrow Payments thereunder; (c) to refund to the Mortgagor any
funds as may be determined to be overages; (d) for transfer to the Custodial Account in accordance
with the terms of this Agreement; (e) for application to restoration or repair of the Mortgaged
Property; (f) to pay to Countrywide, or to the Mortgagors to the extent required by law, any
interest paid on the funds deposited in the Escrow Account; (g) to reimburse itself for any amounts
deposited in the Escrow Account in error; or (h) to clear and terminate the Escrow Account on the
termination of this Agreement.

          Section 4.08 Transfer of Accounts. Countrywide may transfer the Custodial Account or
the Escrow Account to a different depository institution from time to time provided that such
Custodial Account and Escrow Account shall at all times be Eligible Accounts.

          Section 4.09 Payment of Taxes, Insurance and Other Charges; Maintenance of PMI Policies;
Collections Thereunder. With respect to each Mortgage Loan, Countrywide shall maintain
accurate records reflecting the status of (a) ground rents, taxes, assessments, water rates and
other charges that are or may become a lien upon the Mortgaged Property; (b) primary mortgage
insurance premiums; and (c) fire and hazard insurance premiums. Countrywide shall obtain, from time
to time, all bills for the payment of such charges, including renewal premiums, and shall effect
payment thereof prior to the applicable penalty or termination date and at a time appropriate for
securing maximum discounts allowable using Escrow Payments which shall have been estimated and
accumulated by Countrywide in amounts sufficient for such purposes. To the extent that the Mortgage
does not provide for Escrow Payments, Countrywide shall determine that any such payments are made
by the Mortgagor at the time they first become due. Countrywide assumes full responsibility for
the timely payment of all such bills and shall effect timely payments of all such bills,
irrespective of the Mortgagor’s faithful performance in the payment of same or the making of the
Escrow Payments, and shall make advances from its own funds to effect such payments.

          Countrywide will maintain in full force and effect, a PMI Policy conforming in all respects to
the description set forth in Section 3.02(v), issued by an insurer described in that Section, with
respect to each Mortgage Loan for which such coverage is herein required. Such coverage will be
maintained until the LTV or the Updated LTV of the related Mortgage Loan is reduced to 80% or less
in the case of a Mortgage Loan having a LTV at origination in excess of 80%. Countrywide will not
cancel or refuse to renew any PMI Policy in effect on the Closing Date that is required to be kept
in force under this Agreement unless a replacement PMI Policy is obtained from and maintained with
an insurer that is approved by an Agency. Countrywide shall not take any action that would result
in non-coverage under any applicable PMI Policy of any loss that, but for the actions of
Countrywide, would have been covered thereunder. In connection with any assumption or substitution
agreement entered into or to be entered into pursuant to Section 4.16, Countrywide shall promptly
notify the insurer under the related PMI Policy, if any, of such assumption or substitution of
liability in accordance with the terms of such policy and shall take all actions that may be
required by such insurer as a condition to the continuation of coverage under the PMI Policy. If
such PMI Policy is terminated as a result of such assumption or substitution of liability,
Countrywide shall obtain a replacement PMI Policy as provided above.

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          Unless otherwise provided in the related Purchase Confirmation, no Mortgage Loan has in effect
as of the Closing Date any mortgage pool insurance policy or other credit enhancement,
except for any PMI Policy, MIC or LGC and the insurance or guarantee relating thereto, as
applicable (excluding such exception, the “Credit Enhancement”), and Countrywide shall not be
required to take into consideration the existence of any such Credit Enhancement for the purposes
of performing its servicing obligations hereunder. If Purchaser shall at any time after the
related Closing Date notify Countrywide in writing of its desire to obtain any such Credit
Enhancement, Purchaser and Countrywide shall thereafter negotiate in good faith for the procurement
and servicing of such Credit Enhancement.

          Section 4.10 Maintenance of Hazard Insurance. Countrywide shall cause to be
maintained, for each Mortgage Loan, fire and hazard insurance with extended coverage as is
customary in the area where the Mortgaged Property is located in an amount that is equal to the
lesser of (a) the maximum insurable value of the improvements securing such Mortgage Loan or (b)
the greater of (i) the unpaid principal balance of the Mortgage Loan, and (ii) the percentage such
that the proceeds thereof shall be sufficient to prevent the Mortgagor and/or the Mortgagee from
becoming a co-insurer. If the Mortgaged Property is in an area identified in the Federal Register
by the Flood Emergency Management Agency as having special flood hazards and such flood insurance
has been made available, Countrywide shall cause to be maintained a flood insurance policy meeting
the requirements of the current guidelines of the National Flood Insurance Administration program
(or any successor thereto) with a generally acceptable insurance carrier and with coverage in an
amount not less than the lesser of (x) the unpaid principal balance of the Mortgage Loan; (y) the
maximum insurable value of the improvements securing such Mortgage Loan; or (z) the maximum amount
of insurance which is available under the National Flood Insurance Reform Act of 1994. Countrywide
shall also maintain on REO Property, (1) fire and hazard insurance with extended coverage in an
amount that is not less than the maximum insurable value of the improvements that are a part of
such property; (2) liability insurance; and (3) to the extent required and available under the
National Flood Insurance Reform Act of 1994, flood insurance in an amount as provided above.
Countrywide shall deposit in the Custodial Account all amounts collected under any such policies
except (A) amounts to be deposited in the Escrow Account and applied to the restoration or repair
of the Mortgaged Property or REO Property and (B) amounts to be released to the Mortgagor in
accordance with Countrywide’s normal servicing procedures. Purchaser understands and agrees that
no earthquake or other additional insurance on property acquired in respect of the Mortgage Loan
shall be maintained by Countrywide or Mortgagor. All such policies shall be endorsed with standard
mortgagee clauses with loss payable to Countrywide and shall provide for at least thirty (30) days
prior written notice to Countrywide of any cancellation, reduction in the amount of coverage or
material change in coverage. Countrywide shall not interfere with the Mortgagor’s freedom of choice
in selecting either the insurance carrier or agent; provided, however, that Countrywide shall only
accept insurance policies from insurance companies acceptable to an Agency and licensed to do
business in the state wherein the property subject to the policy is located.

          Section 4.11 Maintenance of Mortgage Impairment Insurance. If Countrywide obtains
and maintains a blanket policy insuring against hazard losses on all of the Mortgage Loans issued
by an issuer that has a Best rating of A:V, then, to the extent such policy provides coverage in an
amount equal to the amount required pursuant to Section 4.10 and otherwise complies with all other
requirements of Section 4.10, Countrywide shall conclusively be deemed to have satisfied its
obligations as set forth in Section 4.10. If such blanket policy contains a deductible clause and
there shall not have been maintained on the related Mortgaged Property or REO Property an
additional individual policy complying with Section 4.10, upon the occurrence of a loss that would
have been covered by such individual policy, Countrywide shall deposit in the Custodial Account the
amount not otherwise payable under the blanket policy because of such deductible clause. In
connection with its activities as servicer of the Mortgage Loans, Countrywide agrees to prepare and
present, on behalf of Purchaser, claims under any such blanket policy in a timely fashion in
accordance with the terms of such policy.

          Section 4.12 Fidelity Bond; Errors and Omissions Insurance. If required by the
Agencies, Countrywide shall maintain, at its own expense, a blanket Fidelity Bond and an errors and
omissions insurance policy with responsible companies, with broad coverage of all officers,
employees or other persons acting in any capacity with regard to the Mortgage Loan who handle
funds, money, documents or papers relating to the Mortgage Loan. The Fidelity Bond and errors and
omissions insurance shall be in the form of the Mortgage Banker’s Blanket Bond and shall protect
and insure Countrywide against losses, including forgery, theft, embezzlement, fraud, errors and
omissions and

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negligent acts of its officers, employees and agents. Such Fidelity Bond shall also
protect and insure Countrywide against losses in connection with the failure to maintain any
insurance policies required pursuant to this Agreement and the release or satisfaction of a
Mortgage Loan without having obtained payment in full of the indebtedness secured thereby. No
provision of this Section 4.12 shall diminish or relieve Countrywide from its duties and
obligations as set forth in this Agreement. The minimum coverage under any such Fidelity Bond and
errors and omissions insurance policy shall be at least equal to the corresponding amounts required
by an Agency for an approved seller/servicer.

          Section 4.13 Title, Management and Disposition of REO Property.

               (a) Title. In the event that title to the Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale shall be taken in
the name of Countrywide for the benefit of Purchaser, or in the event Purchaser is not authorized
or permitted to hold title to real property in the state where the REO Property is located, or
would be adversely affected under the “doing business” or tax laws of such state by so holding
title, the deed or certificate of sale shall be taken in the name of such Person(s) as shall be
consistent with an Opinion of Counsel obtained by Countrywide from an attorney duly licensed to
practice law in the state where to REO Property is located. Any Person(s) holding such title other
than Purchaser shall acknowledge in writing that such title is being held as nominee for the
benefit of Purchaser.

               (b) Management. Countrywide shall either itself or through an agent selected by
Countrywide, manage, conserve, protect and operate each REO Property in the same manner that it
manages, conserves, protects and operates other foreclosed property for its own account.
Countrywide shall cause each REO Property to be inspected promptly upon the acquisition of title
thereto and shall cause each REO Property to be inspected at least annually thereafter or more
frequently as required by the circumstances. Countrywide shall make or cause to be made a written
report of each such inspection. Such reports shall be retained in the Credit File and copies
thereof shall be forwarded by Countrywide to Purchaser within five (5) days of Purchaser’s request
therefor. Countrywide shall attempt to sell the REO Property (and may temporarily rent the same)
on such terms and conditions as Countrywide deems to be in the best interest of Purchaser;
provided, however, that Countrywide shall first obtain the prior consent of Purchaser before
selling or agreeing to sell or renting any REO Property. With respect to each REO Property,
Countrywide shall segregate and hold all funds collected and received in connection with the
operation of the REO Property separate and apart from its own funds or general assets and shall
establish and maintain an REO Account for the REO Properties in the form of a non-interest bearing
demand account, unless an Opinion of Counsel is obtained by Countrywide to the effect that the
classification as a grantor trust for federal income tax purposes of the arrangement under which
the Mortgage Loans and the REO Properties is held will not be adversely affected by holding such
funds in another manner. Countrywide shall deposit or cause to be deposited, on a daily basis, in
the REO Account all revenues received with respect to the REO Properties and shall withdraw
therefrom funds necessary for the proper operation, management and maintenance of the REO
Properties, including the cost of maintaining any hazard insurance pursuant to Section 4.10 hereof
and the fees of any managing agent acting on behalf of Countrywide. Countrywide shall not be
entitled to retain interest paid or other earnings, if any, on funds deposited in the REO Account.
On or before each Determination
Date, Countrywide shall withdraw from the REO Account and deposit into the Custodial Account the
net income from the REO Properties on deposit in the REO Account. Notwithstanding anything
contained in this Agreement to the contrary, upon written notice to Countrywide, Purchaser may
elect to assume the management and control of any REO Property; provided, however, that prior to
giving effect to such election, the Purchaser shall reimburse Countrywide for all previously
unreimbursed or unpaid Monthly Advances, Servicing Advances and Servicing Fees.

               (c) Disposition. Countrywide shall use reasonable efforts to dispose of the REO
Property as soon as possible and shall sell such REO Property in any event within one (1) year
after title to such REO Property has been obtained, unless Countrywide determines, and gives an
appropriate notice to Purchaser, that a longer period is necessary for the orderly liquidation of
such REO Property. If a period longer than one (1) year is necessary to sell any REO Property,
Countrywide shall, if requested by Purchaser, report monthly to Purchaser as to the progress being
made in selling such REO Property.

               Each REO Disposition shall be carried out by Countrywide at such price and upon such terms and
conditions as Countrywide deems to be in the best interest of Purchaser; provided,

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however, that
Countrywide shall first obtain the prior consent of Purchaser before selling or agreeing to sell
any REO Property. If as of the date title to any REO Property was acquired by Countrywide there
were outstanding unreimbursed Servicing Advances, Monthly Advances or Servicing Fees with respect
to the REO Property or the related Mortgage Loan, Countrywide, upon an REO Disposition of such REO
Property, shall be entitled to reimbursement for any related unreimbursed Servicing Advances,
Monthly Advances and Servicing Fees from proceeds received in connection with such REO Disposition.
The proceeds from the REO Disposition, net of any payment to Countrywide as provided above, shall
be deposited in the REO Account and shall be transferred to the Custodial Account on the
Determination Date in the month following receipt thereof for distribution on the succeeding
Remittance Date in accordance with Section 5.01.

          Section 4.14 Notification of Adjustments. With respect to each Adjustable Rate
Mortgage Loan, Countrywide shall adjust the Mortgage Interest Rate on the related Interest
Adjustment Date and shall adjust the Monthly Payment on the related Payment Adjustment Date in
compliance with the requirements of applicable law and the related Mortgage and Mortgage Note. If,
pursuant to the terms of the Mortgage Note, another index is selected for determining the Mortgage
Interest Rate because the original index is no longer available, the same index will be used with
respect to each Mortgage Note which requires a new index to be selected, provided that such
selection does not conflict with the terms of the related Mortgage Note. Countrywide shall execute
and deliver any and all necessary notices required under applicable law and the terms of the
related Mortgage Note and Mortgage regarding the Mortgage Interest Rate and the Monthly Payment
adjustments. Countrywide shall promptly, upon written request therefor, deliver to Purchaser such
notifications and any additional applicable data regarding such adjustments and the methods used to
calculate and implement such adjustments. Upon the discovery by Countrywide or Purchaser that
Countrywide has failed to adjust a Mortgage Interest Rate or a Monthly Payment pursuant to the
terms of the related Mortgage Note and Mortgage, Countrywide shall immediately deposit in the
Custodial Account, from its own funds, the amount of any interest loss caused Purchaser thereby
without reimbursement therefor.

          Section 4.15 Notification of Maturity Date. With respect to each Balloon Mortgage
Loan, Countrywide shall execute and deliver to the Mortgagor any and all necessary notices required
under applicable law and the terms of the related Mortgage Note and Mortgage regarding the maturity
date and final balloon payment.

          Section 4.16 Assumption Agreements. Countrywide shall, to the extent it has knowledge
of any conveyance or prospective conveyance by any Mortgagor of the Mortgaged Property (whether by
absolute conveyance or by contract of sale, and whether or not the Mortgagor remains or is to
remain liable under the Mortgage Note and/or the Mortgage), exercise its rights to accelerate the
maturity of such Mortgage Loan under any “due-on-sale” clause to the extent permitted by law;
provided, however, that Countrywide shall not exercise any such right if prohibited from doing so
by law or the terms of the Mortgage Note or if the exercise of such right would impair or threaten
to impair any recovery under the related PMI Policy, if any. If Countrywide reasonably believes it
is unable under applicable law to enforce such “due-on-sale” clause, Countrywide shall enter into
an assumption agreement with the Person to whom the Mortgaged Property has been conveyed or is
proposed to be
conveyed, pursuant to which such Person becomes liable under the Mortgage Note and, to the extent
permitted by applicable state law, the Mortgagor remains liable thereon. Where an assumption is
allowed pursuant to this Section 4.16, Purchaser authorizes Countrywide, with the prior written
consent of the primary mortgage insurer, if any, to enter into a substitution of liability
agreement with the Person to whom the Mortgaged Property has been conveyed or is proposed to be
conveyed pursuant to which the original Mortgagor is released from liability and such Person is
substituted as Mortgagor and becomes liable under the related Mortgage Note. Any such substitution
of liability agreement shall be in lieu of an assumption agreement.

          In connection with any such assumption or substitution of liability, Countrywide shall follow
the underwriting practices and procedures employed by Countrywide for mortgage loans originated by
Countrywide for its own account in effect at the time such assumption or substitution is made.
With respect to an assumption or substitution of liability, the Mortgage Interest Rate borne by the
related Mortgage Note, the term of the Mortgage Loan and the outstanding principal amount of the
Mortgage Loan shall not be changed. Countrywide shall notify Purchaser that any such substitution
of liability or assumption agreement has been completed by forwarding to Purchaser or its designee
the original of any such substitution of liability or assumption agreement, which document shall be
added to the related

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Collateral File and shall, for all purposes, be considered a part of such
Collateral File to the same extent as all other documents and instruments constituting a part
thereof.

          Notwithstanding anything to the contrary contained herein, Countrywide shall not be deemed to
be in default, breach or any other violation of its obligations hereunder by reason of any
assumption of a Mortgage Loan by operation of law or any assumption that Countrywide may be
restricted by law from preventing, for any reason whatsoever. For purposes of this Section 4.16,
the term “assumption” is deemed to also include a sale of the Mortgaged Property subject to the
Mortgage that is not accompanied by an assumption or substitution of liability agreement.

          Section 4.17 Satisfaction of Mortgages and Release of Collateral Files. Upon the
payment in full of any Mortgage Loan, or the receipt by Countrywide of a notification that payment
in full will be escrowed in a manner customary for such purposes, Countrywide shall immediately
notify Purchaser. Such notice shall include a statement to the effect that all amounts received or
to be received in connection with such payment, which are required to be deposited in the Custodial
Account pursuant to Section 4.04, have been or will be so deposited and shall request delivery to
it of the portion of the Collateral File held by Purchaser. Upon receipt of such notice and
request, Purchaser, or its designee, shall within five (5) Business Days release or cause to be
released to Countrywide the related Collateral Documents and Countrywide shall prepare and process
any satisfaction or release. No expense incurred in connection with any instrument of satisfaction
or deed of reconveyance shall be chargeable to the Custodial Account.

          In the event Countrywide satisfies or releases a Mortgage without having obtained payment in
full of the indebtedness secured by the Mortgage or should it otherwise prejudice any right
Purchaser may have under the mortgage instruments, Countrywide, upon written demand, shall remit to
Purchaser the then unpaid principal balance of the related Mortgage Loan by deposit thereof in the
Custodial Account. Countrywide shall maintain the Fidelity Bond insuring Countrywide against any
loss it may sustain with respect to any Mortgage Loan not satisfied in accordance with the
procedures set forth herein.

          From time to time and as appropriate for the service or foreclosure of a Mortgage Loan,
including for the purpose of collection under any PMI Policy, Purchaser shall, upon request of
Countrywide and delivery to Purchaser, or Purchaser’s designee, of a servicing receipt signed by a
Servicing Officer, release or cause to be released to Countrywide the portion of the Collateral
File held by Purchaser or its designee. Pursuant to the servicing receipt, Countrywide shall be
obligated to return to Purchaser the related Collateral File when Countrywide no longer needs such
file, unless the Mortgage Loan has been liquidated and the Liquidation Proceeds relating to the
Mortgage Loan have been deposited in the Custodial Account or the Collateral File or such document
has been delivered to an attorney, or to a public trustee or other public official as required by
law, for purposes of initiating or pursuing legal action or other proceedings for the foreclosure
of the Mortgaged Property either judicially or non-judicially. Upon receipt of notice from
Countrywide stating that such Mortgage Loan was
liquidated and the funds have been deposited or will be deposited in the Custodial Account,
Purchaser shall release Countrywide from its obligations under the related servicing receipt.

          Section 4.18 Servicing Compensation. As compensation for its services hereunder,
Countrywide shall be entitled to withdraw from the Custodial Account, or to retain from interest
payments on the Mortgage Loans, the amounts provided for as Servicing Fees. Additional servicing
compensation in the form of assumption fees (as provided in Section 4.16), late payment charges,
prepayment penalties or otherwise shall be retained by Countrywide to the extent not required to be
deposited in the Custodial Account. Countrywide shall be required to pay all expenses incurred by
it in connection with its servicing activities hereunder and shall not be entitled to reimbursement
therefor except as specifically provided herein.

          Section 4.19 Prepayment Penalties. With respect to any Mortgage Loan that has a
prepayment penalty contained in the related Mortgage Note, Countrywide shall enforce the terms of
any such prepayment penalty and shall not waive the same unless (i) it reasonably believes that
such enforcement would violate applicable law or (ii) the Transaction Documents provide otherwise.

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ARTICLE V

PROVISIONS OF PAYMENTS AND REPORTS TO 

PURCHASER

          Section 5.01 Distributions. On each Remittance Date, Countrywide shall distribute to
Purchaser (a) all amounts credited to the Custodial Account as of the close of business on the
preceding Determination Date, net of charges against or withdrawals from the Custodial Account
pursuant to Section 4.05; plus (b) all Monthly Advances, if any, that Countrywide is obligated to
distribute pursuant to Section 5.03; minus (c) any amounts attributable to Principal Prepayments
received after the related Principal Prepayment Period; minus (d) any amounts attributable to
Monthly Payments collected but due on a Due Date or Dates subsequent to the preceding Determination
Date. It is understood that, by operation of Section 4.04, the remittance on the first Remittance
Date is to include principal collected after the Cut-off Date through the preceding Determination
Date plus interest, adjusted to the Mortgage Loan Remittance Rate, collected through such
Determination Date exclusive of any portion thereof allocable to the period prior to the Cut-off
Date, with the adjustments specified in (b), (c) and (d) above. With respect to any remittance
received by Purchaser after the day on which such payment was due, Countrywide shall pay to
Purchaser interest on any such late payment at an annual rate equal to the rate on overnight
federal fund transactions as published by the Federal Reserve Bank of New York for the date such
payment was due, but in no event greater than the maximum amount permitted by applicable law. Such
interest shall be paid by Countrywide to Purchaser on the date such late payment is made and shall
cover the period commencing with the day following the Business Day on which such payment was due
and ending with the Business Day on which such payment is made, both inclusive. Such interest
shall be remitted along with such late payment.

          Section 5.02 Periodic Reports to Purchaser.

               (a) Monthly Reports. Not later than the fifth (5th) Business Day following
the end of each month, Countrywide shall furnish to Purchaser a Mortgage Loan accounting report, as
of the last Business Day of the previous month, documenting the Mortgage Loan payment activity on
an individual Mortgage Loan basis. Such data shall be reported in order of loan number and shall
contain the following information:

                    (i) the amount of each Monthly Payment that is received allocable to principal (including a
separate breakdown of any Principal Prepayment and the date of such prepayment, any prepayment
penalties or premiums and any interest on principal prepayment amounts remitted);

                    (ii) a trial balance, reported in order of loan number;

                    (iii) the amount of each Monthly Payment that is received allocable to interest and
assumption fees;

                    (iv) the amount of servicing compensation received by Countrywide during the previous Due
Period;

                    (v) the aggregate Stated Principal Balance of the Mortgage Loans;

                    (vi) the aggregate amount of any expenses reimbursed to Countrywide during the pervious Due
Period; and

                    (vii) the number and aggregate Stated Principal Balance of all delinquent Mortgage Loans
(including a separate breakdown for Mortgage Loans that are (a) delinquent thirty to fifty-nine
days, (b) delinquent sixty to eighty-nine days, (c) delinquent ninety or more days, and (d) in
foreclosure and Mortgage Loans that been foreclosed upon and REO Property has been acquired.

               (b) Miscellaneous Reports. Upon the foreclosure sale of any Mortgaged Property or the
acquisition thereof by Purchaser pursuant to a deed-in-lieu of foreclosure, Countrywide shall
submit to Purchaser a liquidation report with respect to such Mortgaged Property, which report may
be included with any other reports prepared by Countrywide and delivered to Purchaser pursuant to
the terms and

15

 

conditions of this Agreement. With respect to any REO Property, and upon the request
of Purchaser, Countrywide shall furnish to Purchaser a statement describing Countrywide’s efforts
during the previous month in connection with the sale of such REO Property, including any rental of
such REO Property incidental to the sale thereof and an operating statement. Countrywide shall
also provide Purchaser with such information concerning the Mortgage Loans as is necessary for
Purchaser to prepare its federal income tax return and as Purchaser may reasonably request from
time to time. Purchaser agrees to pay for all reasonable out-of-pocket expenses incurred by
Countrywide in connection with complying with any request made by Purchaser hereunder if such
information is not customarily provided by Countrywide in the ordinary course of servicing mortgage
loans similar to the Mortgage Loans.

               (c) Tax Reports. Beginning with the calendar year following the year in which the
Cut-off Date for the first Mortgage Loan Package purchased under the Agreement falls, Countrywide
shall prepare and file, with respect to the Mortgage Loans, any tax forms, information statements
or other filings for the previous tax year and subsequent tax years relating to the transactions
contemplated by this Agreement and required to be delivered to any governmental taxing authority or
Purchaser pursuant to any applicable law. In addition, Countrywide shall provide Purchaser with
such information relating to the Mortgage Loans, as Purchaser may reasonably request from time to
time, as is necessary for Purchaser to prepare its federal income tax return and as is reasonably
available to Countrywide.

          Section 5.03 Monthly Advances by Countrywide. Not later than the close of business on
the Business Day preceding each Remittance Date, Countrywide shall deposit in the Custodial Account
an amount equal to all payments not previously advanced by Countrywide, whether or not deferred
pursuant to Section 5.01, of principal (due after the Cut-off Date) and interest not allocable to
the period prior to the Cut-off Date, adjusted to the Mortgage Loan Remittance Rate, which were due
on a Mortgage Loan and delinquent at the close of business on the related Determination Date.

          Countrywide’s obligation to make such advances as to any Mortgage Loan will continue through
the earliest of: (a) the last Monthly Payment due prior to the payment in full of the Mortgage
Loan; (b) the Remittance Date prior to the Remittance Date for the distribution of any Liquidation
Proceeds, Other Insurance Proceeds or Condemnation Proceeds which, in the case of Other Insurance
Proceeds and Condemnation Proceeds, satisfy in full the indebtedness of such Mortgage Loan; or (c)
the Remittance Date prior to the date the Mortgage Loan is converted to REO Property. In no event
shall Countrywide be obligated to make an advance under this Section 5.03 if at the time of such
advance it reasonably determines that such advance will be unrecoverable.

          Section 5.04 Annual Statement as to Compliance. Countrywide shall deliver to
Purchaser on or before May 31st of each year, beginning in the year following the Closing Date, an
Officers’ Certificate stating, as to each signatory thereof, that (a) a review of the activities of
Countrywide during the preceding calendar year and of performance under this Agreement has been
made under such officers’ supervision, and (b) to the best of such officers’ knowledge, based on
such review, Countrywide has fulfilled all of its obligations under this Agreement throughout such
year, or, if there has
been a default in the fulfillment of any such obligation, specifying each such default known to
such officers and the nature and status thereof. Countrywide shall provide Purchaser with copies
of such statements.

          Section 5.05 Annual Independent Certified Public Accountants’ Servicing Report. On or
before May 31st of each year, beginning in the year following the Closing Date, Countrywide at its
expense shall cause a firm of independent public accountants, which is a member of the American
Institute of Certified Public Accountants, to furnish a statement to Purchaser to the effect that
such firm has examined certain documents and records relating to Countrywide’s servicing of
mortgage loans of the same type as the Mortgage Loans, pursuant to this Agreement or servicing
agreements substantially similar to this Agreement, and that, on the basis of such examination,
conducted substantially in accordance with the Uniform Single Audit Program for Mortgage Bankers,
such firm is of the opinion that Countrywide’s servicing has been conducted in compliance with this
Agreement or such servicing agreements examined pursuant to this Section 5.05 except for (a) such
exceptions as such firm shall believe to be immaterial, and (b) such other exceptions as shall be
set forth in such statement. Countrywide shall provide Purchaser with copies of such statements.

          Section 5.06 Purchaser’s Access to Countrywide’s Records. Purchaser shall have access
upon reasonable notice to Countrywide, during business hours or at such other times as

16

 

might be
reasonable under applicable circumstances, to any and all of the books and records of Countrywide
that relate to the performance or observance by Countrywide of the terms, covenants or conditions
of this Agreement, provided that such information is available to the public generally. Further,
Countrywide hereby authorizes Purchaser, in connection with a sale of the Mortgage Loans, to make
available to prospective purchasers a Consolidated Statement of Operations of Countrywide, or its
parent company, prepared by or at the request of Countrywide for the most recently completed three
(3) fiscal years for which such a statement is available as well as a Consolidated Statement of
Condition at the end of the last two (2) fiscal years covered by such Consolidated Statement of
Operations. Countrywide also agrees to make available to any prospective purchaser, upon reasonable
notice and during normal business hours, a knowledgeable financial or accounting officer for the
purpose of answering questions respecting Countrywide’s ability to perform under this Agreement.
Purchaser agrees to reimburse Countrywide for any out-of-pocket costs incurred by Countrywide in
connection with its obligations under this Section 5.06

ARTICLE IVI

COVENANTS BY COUNTRYWIDE

          Section 6.01 Additional Indemnification by Countrywide. In addition to the
indemnification provided in Section 3.03(d), Countrywide shall indemnify Purchaser and hold it
harmless against any and all claims, losses, damages, penalties, fines, forfeitures, reasonable and
necessary attorneys’ fees and related costs, judgments, and any other costs, fees and expenses that
Purchaser may sustain in any way related to the failure of Countrywide to perform its obligations
hereunder including its obligations to service and administer the Mortgage Loans in compliance with
the terms of this Agreement. Notwithstanding the foregoing, Purchaser shall indemnify Countrywide
and hold it harmless against any and all claims, losses, damages, penalties, fines, forfeitures,
reasonable and necessary legal fees and related costs, judgments, and any other costs, fees and
expenses that Countrywide may sustain in any way related to (a) actions or inactions of Countrywide
which were taken or omitted upon the instruction or direction of Purchaser, or (b) the failure of
Purchaser to perform its obligations hereunder.

          Section 6.02 Third Party Claims. Countrywide and Purchaser shall immediately notify
the other if a claim is made upon such party by a third party with respect to this Agreement or the
Mortgage Loans. Upon the prior written consent of Purchaser, which consent shall not be
unreasonably withheld, Countrywide shall assume the defense of any such claim and pay all expenses
in connection therewith, including attorneys’ fees, and promptly pay, discharge and satisfy any
judgment or decree which may be entered against it or Purchaser in respect of such claim. Purchaser
shall promptly reimburse Countrywide for all amounts advanced by it pursuant to the preceding
sentence except when
as a result of such claim Countrywide is otherwise required to indemnify Purchaser pursuant to
Section 3.03 or 6.01 hereof.

          Section 6.03 Merger or Consolidation of Countrywide. Countrywide shall keep in full
effect its existence, rights and franchises as a corporation under the laws of the state of its
incorporation except as permitted herein, and will obtain and preserve its qualification to do
business as a foreign corporation in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Agreement, or any of the Mortgage
Loans, and to perform its duties under this Agreement.

          Notwithstanding anything to the contrary contained herein, any Person into which Countrywide
may be merged or consolidated, or any corporation resulting from any merger, conversion or
consolidation to which Countrywide shall be a party, or any Person succeeding to the business of
Countrywide, shall be the successor of Countrywide hereunder, without the execution or filing of
any paper or any further act on the part of any of the parties hereto; provided, however, that the
successor or surviving Person shall be an institution whose deposits are insured by FDIC or a
company whose business is the origination and servicing of mortgage loans, unless otherwise
consented to by Purchaser, which consent shall not be unreasonably withheld, and shall be qualified
to service mortgage loans on behalf of an Agency.

17

 

          Section 6.04 Limitation on Liability of Countrywide and Others. Neither Countrywide
nor any of the officers, employees or agents of Countrywide shall be under any liability to
Purchaser for any action taken, or for refraining from taking any action, in good faith pursuant to
this Agreement, or for errors in judgment; provided, however, that this provision shall not protect
Countrywide or any such person against any breach of warranties or representations made herein, or
the failure to perform its obligations in compliance with any standard of care set forth in this
Agreement, or any liability which would otherwise be imposed by reason of any breach of the terms
and conditions of this Agreement. Countrywide and any officer, employee or agent of Countrywide
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. To the extent Purchaser records with the
recording office or requires Countrywide to record an Assignment of Mortgage which designates the
Purchaser as the holder of record of the Mortgage, Purchaser agrees that Countrywide shall have no
liability to Purchaser to the extent Countrywide fails to receive timely notice of any action with
respect to the Mortgage or the related Mortgaged Property and/or the Purchaser fails to ensure that
the proper department or person at Countrywide receives such notice. Countrywide shall not be
under any obligation to appear in, prosecute or defend any legal action which is not incidental to
its duties to service the Mortgage Loans in accordance with this Agreement and which in its opinion
may involve it in any expenses or liability; provided, however, that Countrywide may, with the
consent of Purchaser, undertake any such action which it may deem necessary or desirable in respect
to this Agreement and the rights and duties of the parties hereto. In such event, the legal
expenses and costs of such action and any liability resulting therefrom shall be expenses, costs
and liabilities for which Purchaser will be liable, and Countrywide shall be entitled to be
reimbursed therefor from Purchaser upon written demand except when such expenses, costs and
liabilities are subject to Countrywide’s indemnification under Section 3.03 or 6.01.

          Section 6.05 No Transfer of Servicing. Countrywide acknowledges that Purchaser acts in
reliance upon Countrywide’s independent status, the adequacy of its servicing facilities, plant,
personnel, records and procedures, its integrity, reputation and financial standing and the
continuance thereof. Without in any way limiting the generality of this Section, Countrywide shall
not assign this Agreement or the servicing rights hereunder, without the prior written approval of
Purchaser, which consent may not be unreasonably withheld.

ARTICLE VII

TERMINATION OF COUNTRYWIDE AS SERVICER

          Section 7.01 Termination Due to an Event of Default.

               (a) Events of Default. Each of the following shall be an Event of Default by
Countrywide if it shall occur and be continuing:

          (i) any failure by Countrywide to remit to Purchaser any payment required to be made
under the terms of this Agreement which continues unremedied for a period of three (3)
Business Days after the date upon which written notice of such failure, requiring the same
to be remedied, shall have been given to Countrywide by Purchaser; or

          (ii) failure on the part of Countrywide to duly observe or perform in any material
respect any of the covenants or agreements on the part of Countrywide set forth in this
Agreement which continues unremedied for a period of thirty (30) days after the date on
which written notice of such failure, requiring the same to be remedied, shall have been
given to Countrywide by Purchaser; or

          (iii) a decree or order of a court or agency or supervisory authority having
jurisdiction for the appointment of a conservator or receiver or liquidator in any
insolvency, bankruptcy, readjustment of debt, marshaling of assets and liabilities or
similar proceedings, or for the winding-up or liquidation of its affairs, shall have been
entered against Countrywide and such decree or order shall have remained in force
undischarged or unstayed for a period of sixty (60) days; or

18

 

          (iv) Countrywide shall consent to the appointment of a conservator or receiver or
liquidator in any insolvency, bankruptcy, readjustment of debt, marshaling of assets and
liabilities or similar proceedings of or relating to Countrywide or of or relating to all or
substantially all of its property; or

          (v) Countrywide shall admit in writing its inability to pay its debts generally as they
become due, file a petition to take advantage of any applicable insolvency or reorganization
statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment
of its obligations; or

          (vi) Countrywide fails to maintain its license to do business or service residential
mortgage loans in any jurisdiction where Mortgaged Properties are located or ceases to meet
the qualifications of FNMA- or FHLMC-approved servicer; or

          (vii) Countrywide attempts, without the consent of the Purchaser to assign this
Agreement or the servicing responsibilities hereunder or to delegate its duties hereunder or
any portion thereof.

               In case one or more Event of Default by Countrywide shall occur and shall not have been
remedied, the Purchaser, by notice in writing to Countrywide may, in addition to whatever rights
Purchaser may have at law or equity to damages, including injunctive relief and specific
performance, terminate all the rights and obligations of Countrywide under this Agreement and in
and to the Mortgage Loans and the proceeds thereof. On or after the receipt by Countrywide of such
written notice, all authority and power of Countrywide under this Agreement, whether with respect
to the Mortgage Loans or otherwise, shall pass to and be vested in Purchaser. Upon written request
from Purchaser, Countrywide shall prepare, execute and deliver, any and all documents and other
instruments, placed in such successor’s possession all Credit Files, and do or accomplish all other
acts or things necessary or appropriate to effect the purposes of such notice of termination,
whether to complete the transfer and endorsement or assignment of the Mortgage Loans and related
documents, or otherwise, at Countrywide’s sole expense. Countrywide agrees to cooperate with
Purchaser in effecting the termination of Countrywide’s responsibilities and rights hereunder,
including the transfer to Purchaser, for administration by it, of all cash amounts which shall at
the time be credited by Countrywide to the
Custodial Account, REO Account or Escrow Account or thereafter received with respect to the
Mortgage Loans.

               (b) Waiver of Event of Default. Purchaser may waive any default by Countrywide in the
performance of its obligations hereunder and its consequences. Upon any such waiver of a past
default, such default shall cease to exist, and any Event of Default arising therefrom shall be
deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to
any subsequent or other default or impair any right consequent thereon except to the extent
expressly so waived.

          Section 7.02 Termination by Other Means. The respective obligations and
responsibilities of Countrywide shall terminate with respect to any Mortgage Loan Package upon the
first to occur of: (a) the later of the final payment or other liquidation (or any advance with
respect thereto) of the last Mortgage Loan or the disposition of all REO Property in such Mortgage
Loan Package and the remittance of all funds due hereunder; (b) by mutual consent of Countrywide
and Purchaser in writing.

ARTICLE VIII

MISCELLANEOUS

          Section 8.01 Notices. All demands, notices and communications required to be provided
hereunder shall be in writing and shall be deemed to have been duly given if mailed, by registered
or certified mail, postage prepaid, and return receipt requested, or, if by other means, when
received by the other party at the address as follows:

19

 

               (i)   if to Countrywide:

Countrywide Home Loans, Inc.

4500 Park Granada

Calabasas, California 91302

Attn: Mr. Dave Sambol, Managing Director

               (ii)   if to Purchaser:

To the address and contact set forth in the related Purchase Confirmation

or such other address as may hereafter be furnished to the other party by like notice. Any such
demand, notice or communication hereunder shall be deemed to have been received on the date
delivered to or received at the premises of the addressee (as evidenced, in the case of registered
or certified mail, by the date noted on the return receipt).

          Section 8.02 Reserved.

          Section 8.03 Exhibits. The Exhibits to this Agreement and each Trade Confirmation and
Purchase Confirmation executed by Countrywide and Purchaser are hereby incorporated and made a part
hereof and are an integral part of this Agreement.

          Section 8.04 General Interpretive Principles. For purposes of this Agreement, except
as otherwise expressly provided or unless the context otherwise requires:

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

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

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

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

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

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

               (g) reference to the Transaction Documents or any other document referenced herein shall
include all exhibits, schedules or other supplements thereto.

          Section 8.05 Reproduction of Documents. This Agreement and all documents relating
thereto, including (a) consents, waivers and modifications which may hereafter be executed, (b)
documents received by any party at the closing, and (c) financial statements, certificates and
other information previously or hereafter furnished, may be reproduced by any photographic,
photostatic, microfilm, micro-card, miniature photographic or other similar process. The parties
agree that any such reproduction shall be admissible in evidence as the original itself in any
judicial or administrative proceeding, whether or not the original is in existence and whether or
not such reproduction was made by a party in the regular course of business, and that any
enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in
evidence.

20

 

          Section 8.06 Further Agreements. Countrywide shall execute and deliver to Purchaser
and Purchaser shall be required to execute and deliver to Countrywide such reasonable and
appropriate additional documents, instruments or agreements as may be necessary or appropriate to
effectuate the purposes of this Agreement.

          Section 8.07 Assignment of Mortgage Loans by Purchaser. Purchaser may, subject to the
terms of this Agreement, sell and transfer one or more of the Mortgage Loans; provided, however,
that the transferee will not be deemed to be Purchaser hereunder unless such transferee shall agree
in writing to be bound by the terms of this Agreement and an original counterpart of the document
evidencing such agreement shall have been executed by Purchaser and the transferee and delivered to
Countrywide. Notwithstanding the foregoing, no transfer shall be effective if such transfer would
result in there being more than three (3) “Purchasers” outstanding hereunder with respect to any
Mortgage Loan Package.

          Section 8.08 Conflicts with Purchase Confirmation. In the event of any conflict,
inconsistency or ambiguity between the terms and conditions of this Agreement and either the Trade
Confirmation or Purchase Confirmation, the terms of the Trade Confirmation or Purchase
Confirmation, as the case may be, shall control. In the event of any conflict, inconsistency or
ambiguity between the terms and conditions of the Trade Confirmation and the Purchase Confirmation,
the terms of the Purchase Confirmation shall control.

          Section 8.09 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California applicable to agreements entered into and
wholly performed within that state.

          Section 8.10 Severability Clause. Any part, provision, representation or warranty of
this Agreement which is prohibited or which is held to be void or unenforceable shall be
ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof. Any part, provision, representation or warranty of this Agreement
which is prohibited or unenforceable or is held to be void or unenforceable in any jurisdiction
shall be ineffective, as to such jurisdiction, to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction as to any Mortgage Loan shall not invalidate or
render unenforceable such provision in any other jurisdiction. To the extent permitted by
applicable law, the parties hereto waive any provision of law which prohibits or renders void or
unenforceable any provision hereof. If the invalidity of any part, provision, representation or
warranty of this Agreement shall deprive any party of the economic benefit intended to be conferred
by this Agreement, the parties shall negotiate, in good-faith, to an amendment to this Agreement
which places each party in the same or as economic position as each party would have been in except
for such invalidity.

          Section 8.11 Successors and Assigns. This Agreement shall bind and inure to the
benefit of and be enforceable by Countrywide and Purchaser and the respective permitted successors
and assigns of Countrywide and Purchaser. Except as specifically set forth in Section 8.07 above,
Purchaser may not assign this Agreement to any Person without Countrywide’s prior written consent.

          Section 8.12 Confidentiality. Countrywide and Purchaser acknowledge and agree that
the terms of the Transaction Documents shall be kept confidential and its contents will not be
divulged to any party without the other party’s consent, except to the extent that it is
appropriate for Countrywide and Purchaser to do so in working with legal counsel, auditors, taxing
authorities, or other governmental agencies.

          Section 8.13 Entire Agreement. This Agreement and the related Trade Confirmation and
Purchase Confirmation constitute the entire understanding between the parties hereto with respect
to each Mortgage Loan Package and supersede all prior or contemporaneous oral or written
communications regarding same. Countrywide and Purchaser understand and agree that no employee,
agent or other representative of Countrywide or Purchaser has any authority to bind such party with
regard to any statement, representation, warranty or other expression unless said statement,
representation, warranty or other expression is specifically included within the express terms of
this Agreement or the related Trade Confirmation or Purchaser Confirmation. Neither this Agreement
nor the

21

 

Trade Confirmation nor the Purchase Confirmation shall be modified, amended or in any way
altered except by an instrument in writing signed by both parties.

[INTENTIONALLY LEFT BLANK]

22

 

     IN WITNESS WHEREOF, Countrywide and Purchaser have caused their names to be signed hereto by
their respective officers thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	COUNTRYWIDE HOME LOANS, INC.,

as Countrywide

 	 
	 	By  	 	 
	 	 	Michael W. Schloessmann Jr. 	 
	 	 	Vice President 	 
	 
	 	RWT HOLDINGS, INC.,

as Purchaser

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

23

 

	 	 	 	 	 

Exhibit 10.6

EXHIBIT A

COLLATERAL DOCUMENTS

	1.	 	Mortgage Note: The original Mortgage Note (or a lost note affidavit in a form
acceptable to an Agency) bearing all intervening endorsements, endorsed “Pay to the order of
                    , without recourse” and signed in the name of Countrywide by an authorized
officer.
	 
	2.	 	Assignment of Mortgage: The original Assignment of Mortgage in blank.
	 
	3.	 	Guarantee: The original of any guarantee executed in connection with the Mortgage
Note.
	 
	4.	 	Mortgage: The original Mortgage with evidence of recording thereon or, if such
original Mortgage has not been returned to Countrywide on or prior to the Closing Date by the
public recording office where such Mortgage has been delivered for recordation, a copy of such
Mortgage certified by Countrywide to be a true and complete copy of the original Mortgage sent
for recordation.
	 
	5.	 	Modifications: The originals of all assumption, modification, consolidation or
extension agreements, with evidence of recording thereon, if any.
	 
	6.	 	Intervening Assignments: The originals of all intervening assignments of Mortgage
with evidence of recording thereon or, if any of such originals have not been returned to
Countrywide on or prior to the Closing Date by the public recording office where such
intervening assignment of Mortgage has been delivered for recordation, a certified true and
correct copy of such intervening assignment of Mortgage sent for recordation.
	 
	7.	 	Title Policy: The original mortgagee title insurance policy (or the equivalent
thereof with respect to any Mortgage Loan in which the related Mortgaged Property is located
in a jurisdiction where such title insurance is not customarily provided) if such
title insurance policy has been issued by the related title company on or prior to the Closing
Date.

A-1

 

MORTGAGE LOAN PURCHASE AND SERVICING AGREEMENT

(the “Agreement”)

between

COUNTRYWIDE HOME LOANS, INC.

(“Countrywide”)

and

RWT HOLDINGS, INC.

(“Purchaser”)

dated as of

April 1, 1998

Conventional

Residential Mortgage Loans

(SERVICING RETAINED)

 

 

The following are excerpts of the relevant servicing provisions of:

AMENDMENT NUMBER ONE

to the

MORTGAGE LOAN PURCHASE AND SERVICING AGREEMENT,

dated as of April 1, 1998,

between

COUNTRYWIDE HOME LOANS INC.,

and

RWT HOLDINGS, INC.

          This AMENDMENT NUMBER ONE (this “Amendment”) is made as of February 27, 2004, between
Countrywide Home Loans, Inc., (the “Seller”) and RWT Holdings, Inc., (the “Purchaser”), to the
Mortgage Loan Purchase and Servicing Agreement, dated as of April 1, 1998 (as may be amended or
supplemented from time to time, the “Agreement”) between the Purchaser and the Seller, as otherwise
amended.

RECITALS

          WHEREAS, the Seller and the Purchaser hereto desire to amend the Agreement subject to the
terms and conditions of this Amendment.

          NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and of the mutual covenants herein contained, the parties hereto hereby agree
as follows:

          SECTION 1. Defined Terms. Any terms capitalized but not otherwise defined herein shall
have the respective meanings set forth in the Agreement.

          SECTION 2. Amendments.

     (A) Effective as of February 19, 2004, Article I of the Agreement is hereby amended by
inserting after the definition of Closing Date the following definition for Code:

          “Code: The Internal Revenue Code of 1986, as it may be amended from time
to time or any successor statute thereto, and applicable U.S. Department of Treasury
regulations issued pursuant thereto.”

     (B) Effective as of February 19, 2004, Article I of the Agreement is hereby amended by
deleting the definition of Determination Date and replacing it with the following:

          “Determination Date: The 15th day of the month of the related Remittance
Date or if such 15th day is not a Business Day, the Business Day immediately preceding such
15th day.”

     (C) Effective as of February 19, 2004, Article I of the Agreement is hereby amended by
deleting the definition of Eligible Account and replacing it with the following:

2

 

          “Eligible Account: Any of (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company the short-term unsecured
debt obligations of which (or, in the case of a depository institution or trust company that
is the principal subsidiary of a holding company, the debt obligations of such holding
company) have the highest short-term ratings of each Rating Agency at the time any amounts
are held on deposit therein, or (ii) an account or accounts in a depository institution or
trust company in which such accounts are insured by the FDIC, or (iii) a trust account or
accounts maintained with the trust department of a federal or state chartered depository
institution or trust company, acting in its fiduciary capacity or (iv) any other account
acceptable to any Rating Agency. Eligible Accounts may bear interest.”

     (D) Effective as of February 19, 2004, Article I of the Agreement is hereby amended by
inserting after the definition of Other Insurance Proceeds the following definition for
Pass-Through Transfer:

               “Pass-Through Transfer: As defined in Section 8.15(a)(ii).”

     (E) Effective as of February 19, 2004, Article I of the Agreement is hereby amended by
inserting after the definition of Rating Agency the following definition for REMIC and REMIC
Provisions:

          “ REMIC: A “real estate mortgage investment conduit” within the meaning of
Section 860D of the Code.

          REMIC Provisions: Provisions of the federal income tax law relating to a REMIC
which appear at the Section 860A through 860 G of Subchapter M of Chapter 1, Subtitle A of
the Code, and related provisions, and regulations, rulings or pronouncements promulgated
thereunder, as the foregoing may be in effect from time to time.”

     (F) Effective as of February 19, 2004, Article I of the Agreement is hereby amended by
deleting the definition of Remittance Date:

          “ Remittance Date: The eighteenth (18th) day of any month, beginning with
the month next following the month in which the related Cut-off Date occurs, or if such
eighteenth (18th) day is not a Business Day, the first Business Day immediately preceding
such 18th day.”

     (G) Effective as of February 19, 2004, Article I of the Agreement is hereby amended by
inserting after the definition of Other Insurance Proceeds the following:

               “Whole Loan Transfer: As defined in Section 8.15(a)(i).”

     (H) Effective as of February 19, 2004, Section 3.03(c) shall be amended by inserting as
the third paragraph therein the following:

               “In the event that any Mortgage Loan is held by a REMIC, notwithstanding any
contrary provision of this Agreement, with respect to any Mortgage Loan that is not in
default or as to which no default is imminent, Purchaser may, in connection with any
repurchase or substitution of a defective Mortgage Loan pursuant to this Section 3.03,
require that Countrywide deliver an Opinion of Counsel to the effect that such repurchase or
substitution will not (i) result
in the imposition of taxes on “prohibited transactions” of such REMIC (as defined in Section
860F of

3

 

the Code) or otherwise subject the REMIC to tax, or (ii) cause the REMIC to fail to
qualify as a REMIC at any time.”

     (I) Effective as of February 19, 2004, Section 4.01 shall be amended by deleting the
first sentence of the second paragraph and replacing it with the following:

               “In accordance with the terms of this Agreement, Countrywide may waive, modify or
vary any term of any Mortgage Loan or consent to the postponement of strict compliance with
any such term or in any manner grant indulgence to any Mortgagor if in Countrywide’s
reasonable and prudent determination such waiver, modification, postponement or indulgence
is not materially adverse to Purchaser; provided, however, that Countrywide shall not (a)
permit any modification with respect to any Mortgage Loan that would decrease the Mortgage
Interest Rate (other than by adjustments required by the terms of the Mortgage Note), result
in the denial of coverage under a PMI Policy, defer or forgive the payment of any principal
or interest payments, reduce the outstanding principal amount (except for actual payments of
principal), make future advances or extend the final maturity date on such Mortgage Loan (b)
with respect to any Mortgage Loan for which any payment due remains delinquent for a period
of 90 days or more, make any other modifications, or (c) accept substitute or additional
collateral, or release any collateral, for a Mortgage Loan without Purchaser’s prior written
consent.

     (J) Effective as of February 19, 2004, Section 4.01 shall be amended by inserting as the
third paragraph therein the following:

               “Notwithstanding anything to the contrary in the this Agreement, Countrywide shall
not make or permit any modification, waiver or amendment of any term of a Mortgage Loan that
could cause any REMIC holding such Mortgage Loan to fail to qualify as a REMIC or result in
the imposition of any tax under Section 860F(a) or 860G(d) of the Code on any REMIC holding
such Mortgage Loan.”

     (K) Effective as of February 19, 2004, Section 4.03(a) shall be amended by deleting it in
its entirety and replacing it with the following:

“ (a) Foreclosure. Countrywide shall use reasonable efforts to foreclose upon
or otherwise comparably convert the ownership of properties securing such of the Mortgage
Loans as come into and continue in default and as to which no satisfactory arrangements can
be made for collection of delinquent payments. Countrywide shall use reasonable efforts to
realize upon defaulted Mortgage Loans, in such manner as will maximize the receipt of
principal and interest by Purchaser, taking into account, among other things, the timing of
foreclosure proceedings. In the event that any payment due under any Mortgage Loan remains
delinquent for a period of 90 days or more, Countrywide shall (a) act in the best interests
of the Purchaser, and such action may include the commencement of foreclosure proceedings,
(b) commence foreclosure proceedings, provided that prior to commencing foreclosure
proceedings, Countrywide shall notify the Purchaser in writing of Countrywide’s intention to
do so, and Countrywide shall not commence foreclosure proceedings if the Purchaser objects
to such action within ten (10) Business Days of receiving such notice, and (c) respond to
reasonable inquiries of the Purchaser with respect to the Mortgage Loan or related REO
Property. The Purchaser may instruct Countrywide to commence foreclosure proceedings on any
Mortgage Loan for which any payment remains delinquent for a period of 120 days or more. If
Countrywide has commenced foreclosure proceedings, it shall promptly notify the Purchaser
and thereafter periodically advise the Purchaser of the status of the foreclosure
proceedings and follow the Purchaser’s instructions in connection therewith. The foregoing
is subject to the provisions that, in any case in which Mortgaged Property shall have
suffered damage, Countrywide shall not be required to expend its
own funds toward the restoration of such property unless it shall determine in its
discretion (i) that

4

 

such restoration will increase the proceeds of liquidation of the
related Mortgage Loan to Purchaser after reimbursement to itself for such expenses, and (ii)
that such expenses will be recoverable by Countrywide through PMI Proceeds, Other Insurance
Proceeds or Liquidation Proceeds from the related Mortgaged Property. Countrywide shall
notify Purchaser in writing of the commencement of foreclosure proceedings. Such notice may
be contained in the reports prepared by Countrywide and delivered to Purchaser pursuant to
the terms and conditions of this Agreement. Countrywide shall be responsible for all costs
and expenses incurred by it in any foreclosure proceedings; provided, however, that it shall
be entitled to reimbursement thereof from proceeds from the related Mortgaged Property.”

     (L) Effective as of February 19, 2004, Section 4.13(c) shall be amended by deleting the
first sentence of the second paragraph in its entirety and replacing it with the following:

               “ Subject to Section 4.03, each REO Disposition shall be carried out by Countrywide
at such price and upon such terms and conditions as Countrywide deems to be in the best
interest of Purchaser; provided, however, that Countrywide shall first obtain the prior
consent of Purchaser before selling or agreeing to sell any REO Property.”

     (M) Effective as of February 19, 2004, Section 4.13(c) shall be amended by inserting as
the third and fourth paragraph therein with the following:

               “The REO Property must be sold within three years following the end of the
calendar year of the date of acquisition if a REMIC election has been made with respect to
the arrangement under which the Mortgage Loans and REO Property are held, unless (i) the
Purchaser shall have been supplied with an Opinion of Counsel to the effect that the holding
by the related trust of such Mortgaged Property subsequent to such three-year period (and
specifying the period beyond such three-year period for which the Mortgaged Property may be
held) will not result in the imposition of taxes on “prohibited transactions” of the related
trust as defined in Section 860F of the Code, or cause the related REMIC to fail to qualify
as a REMIC, in which case the related trust may continue to hold such Mortgaged Property
(subject to any conditions contained in such Opinion of Counsel), or (ii) the Purchaser or
Countrywide shall have applied for, prior to the expiration of such three-year period, an
extension of such three-year period in the manner contemplated by Section 856(e)(3) of the
Code, in which case the three-year period shall be extended by the applicable period. If a
period longer than three years is permitted under the foregoing sentence and is necessary to
sell any REO Property, Countrywide shall report monthly to the Purchaser as to progress
being made in selling such REO Property.

               Notwithstanding any other provision of this Agreement, if a REMIC election has been
made, no Mortgaged Property held by a REMIC shall be rented (or allowed to continue to be
rented) or otherwise used for the production of income by or on behalf of the related trust
or sold in such a manner or pursuant to any terms that would (i) cause such Mortgaged
Property to fail to qualify at any time as “foreclosure property” within a meaning of
Section 860G(a)(8) of the Code, (ii) subject to the related trust to the imposition of any
federal or state income taxes on “net income from foreclosure property” with respect to such
Mortgaged Property within the meaning of Section 860G(c) of the Code, or (iii) cause the
sale of such Mortgaged Property to result in the receipt by the related trust or any income
from non-permitted assets as described in Section 860F(a) (2)(B) of the Code, unless
Countrywide has agreed to indemnify and hold harmless the related trust with respect to the
imposition of any such taxes.”

     (N) Effective as of February 19, 2004, Article IV of the Agreement shall be amended by
inserting the following:

               “Section 4.20 Compliance with REMIC Provisions. If a REMIC election has
been made with respect to the arrangement under which the Mortgage Loans and REO Property

5

 

are held, Countrywide shall not take any action, cause the REMIC to take any action or fail
to take (or fail to cause to be taken) any action that, under the REMIC Provisions, if taken
or not taken, as the case may be could (i) endanger the status of the REMIC as a REMIC or
(ii) result in the imposition of a tax upon the REMIC (including but not limited to the tax
on “prohibited transactions” as defined in Section 860F(a)(2) of the Code and the tax on
“contribution” to a REMIC set forth in Section 860G(d) of the Code unless Countrywide has
received an Opinion of Counsel (at the expense of the party seeking to take such actions) to
the effect that the contemplated action will not endanger such REMIC status or result in the
imposition of any such tax.”

     (O) Effective as of February 19, 2004, Section 5.03 shall be amended by deleting the
first sentence of the second paragraph in its entirety and replacing it with the following:

               “Countrywide’s obligation to make such advances as to any Mortgage Loan will
continue through the earliest of: (a) the repurchase of the Mortgage Loan by Countrywide
pursuant to Section 3.03, or; (b) the Remittance Date following the ultimate liquidation of
the Mortgage Loan and the related REO Property. In no event shall Countrywide be obligated
to make an advance under this Section 5.03 if at the time of such advance it reasonably
determines that such advance will be unrecoverable.”

     (P) Effective as of February 19, 2004, Article VIII of the Agreement shall be amended by
inserting the following:

     “Section 8.15 Reconstitution of Mortgage Loans.

     (a) Countrywide acknowledges and the Purchaser agrees that with respect to some or all
of the Mortgage Loans, the Purchaser may effect either:

     (i) one or more sales of the Mortgage Loans as whole loan transfers (each,
a “Whole Loan Transfer”); and/or

     (ii) one or more sales of the Mortgage Loans as public or private
pass-through transfers (each, a “Pass-Through Transfer”),

provided that no such transfer shall be effective if such transfer would result in there
being more than three (3) “Purchasers” outstanding hereunder with respect to any Mortgage
Loan Package including the initial Purchaser.

     (b) With respect to each Whole Loan Transfer or Pass-Through Transfer, as the case may,
Countrywide agrees:

     (i) to reasonably cooperate with the Purchaser and any prospective
purchaser with respect to all reasonable requests and due diligence procedures
including participating in mandatory meetings with rating agencies, bond
insurers and such other parties as may be necessary and as the Purchaser shall
reasonably designate and participating in mandatory meetings with prospective
purchasers of the Mortgage Loans or interests therein and providing necessary
information as reasonably requested by such purchasers;

     (ii) to execute all necessary agreements reasonably required to be executed
by Countrywide in connection with such Pass-Through Transfer or Whole Loan
Transfer (including a mutually acceptable assignment assumption and recognition
agreement) provided that any such agreements be consistent with the terms hereof
and impose no greater duties, liabilities or obligations upon Countrywide or
provide

6

 

any lower benefits to Countrywide than those set forth herein and
provided that Countrywide is given an opportunity to review and reasonably
negotiate in good faith the content of any such agreements;

     (iii) to reasonably deliver to the Purchaser and to any Person designated
by the Purchaser for inclusion in any prospectus or other offering material such
publicly available information regarding Countrywide, its financial condition
and its mortgage loan delinquency, foreclosure and loss experience and any
additional information reasonably requested by the Purchaser and necessary for
such Whole Loan Transfer or Pass-Through Transfer, and which Countrywide are
capable of providing without unreasonable effort or expense, and to indemnify
the Purchaser for material misstatements or omissions contained in such
information; and

     (iv) to reasonably deliver to the Purchaser, and to any Person designated
by the Purchaser, such required legal documents and in-house Opinions of Counsel
as are customarily delivered by originators or servicers, as the case may be,
and reasonably and mutually determined by the Purchaser and Countrywide to be
necessary in connection with Whole Loan Transfers or Pass-Through Transfers, as
the case may be, such in-house Opinions of Counsel for a Pass-Through Transfer
to be in the form reasonably acceptable to the Purchaser and Countrywide, it
being understood that the cost of any opinions of outside counsel that may be
required for a Whole Loan Transfer or Pass-Through Transfer, as the case may be,
shall be the sole responsibility of the Purchaser.

     (c) The Purchaser shall reimburse Countrywide for any and all expenses, costs and fees
incurred by Countrywide in response to any requests for information or assistance under this
Section.”

          SECTION 3. Limited Effect. Except as expressly amended and modified by this Amendment,
the Agreement shall continue in full force and effect in accordance with its terms. Reference to
this Amendment need not be made in the Agreement or any other instrument or document executed in
connection therewith or herewith, or in any certificate, letter or communication issued or made
pursuant to, or with respect to, the Agreement, any reference in any of such items to the Agreement
being sufficient to refer to the Agreement as amended hereby.

          SECTION 4. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO THE CONFLICT OF LAWS
DOCTRINE APPLIED IN SUCH STATE.

          SECTION 5. Counterparts. This Amendment may be executed by each of the parties hereto
on any number of separate counterparts, each of which shall be an original and all of which taken
together shall constitute one and the same instrument.

[Signature Page Follows]

7

 

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

	 	 	 	 	 	 	 
	 	 	COUNTRYWIDE HOME LOANS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	RWT HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

8

 

Exhibit 10.6

AMENDMENT REG AB

TO THE MASTER MORTGAGE LOAN PURCHASEAND SERVICING AGREEMENT

          This is Amendment Reg AB (“Amendment Reg AB”), dated as of August 1, 2006, by and
between RWT Holdings, Inc. (the “Purchaser”), and Countrywide Home Loans, Inc.
(the “Company”) to that certain Mortgage Loan Purchase and Servicing Agreement dated as of
April 1, 1998 by and between the Company and the Purchaser (as amended, modified or supplemented,
the “Existing Agreement”).

WITNESSETH

          WHEREAS, the Company and the Purchaser have agreed, subject to the terms and conditions of
this Amendment Reg AB that the Existing Agreement be amended to reflect agreed upon revisions to
the terms of the Existing Agreement.

          Accordingly, the Company and the Purchaser hereby agree, in consideration of the mutual
premises and mutual obligations set forth herein, that the Existing Agreement is hereby amended as
follows:

1. Capitalized terms used herein but not otherwise defined shall have the meanings set forth in the
Existing Agreement. The Existing Agreement is hereby amended by adding the following definitions
in their proper alphabetical order:

     Commission: The United States Securities and Exchange Commission.

     Company Information: As defined in Section 2(g)(i)(A)(1).

     Depositor: The depositor, as such term is defined in Regulation AB, with respect to
any Securitization Transaction.

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

     Master Servicer: With respect to any Securitization Transaction, the “master
servicer,” if any, identified in the related transaction documents.

     Qualified Correspondent: Any Person from which the Company purchased Mortgage Loans,
provided that the following conditions are satisfied: (i) such Mortgage Loans were either (x)
originated pursuant to an agreement between the Company and such Person that contemplated that such
Person would underwrite mortgage loans from time to time, for sale to the Company, in accordance
with underwriting guidelines designated by the Company (“Designated Guidelines”) or guidelines that
do not vary materially from such Designated Guidelines or (y) individually re-underwritten by the
Company to the Designated Guidelines at the time such Mortgage Loans were acquired by the Company;
(ii) either (x) the Designated Guidelines were, at the time such Mortgage Loans were originated,
used by the Company in origination of mortgage loans of the same type as the Mortgage Loans for the
Company’s own

 

 

account or (y) the Designated
Guidelines were, at the time such Mortgage Loans were underwritten, designated by the Company on a
consistent basis for use by lenders in originating mortgage loans to be purchased by the Company;
and (iii) the Company employed, at the time such Mortgage Loans were acquired by the Company,
pre-purchase or post-purchase quality assurance procedures (which may involve, among other things,
review of a sample of mortgage loans purchased during a particular time period or through
particular channels) designed to ensure that either Persons from which it purchased mortgage loans
properly applied the underwriting criteria designated by the Company or the Mortgage Loans
purchased by the Company substantially comply with the Designated Guidelines.

     Reconstitution: Any Securitization Transaction or Whole Loan Transfer.

     Reconstitution Agreement: An agreement or agreements entered into by the Company and
the Purchaser and/or certain third parties in connection with a Reconstitution with respect to any
or all of the Mortgage Loans serviced under the Agreement.

     Regulation AB: Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification
and interpretation as have been provided by the Commission in the adopting release (Asset-Backed
Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the
staff of the Commission, or as may be provided by the Commission or its staff from time to time.

     Securities Act: The Securities Act of 1933, as amended.

     Securitization Transaction: Any transaction subject to Regulation AB involving either
(1) a sale or other transfer of some or all of the Mortgage Loans directly or indirectly to an
issuing entity in connection with an issuance of publicly offered, rated mortgage-backed securities
or (2) an issuance of publicly offered, rated securities, the payments on which are determined
primarily by reference to one or more portfolios of residential mortgage loans consisting, in whole
or in part, of some or all of the Mortgage Loans.

     Servicer: As defined in Section 2(c)(iii).

     Servicing Criteria: The “servicing criteria” set forth in Item 1122(d) of Regulation
AB, as such may be amended from time to time.

     Static Pool Information: Static pool information as described in Item 1105.

     Subcontractor: Any vendor, subcontractor or other Person that is not responsible for
the overall servicing (as “servicing” is commonly understood by participants in the mortgage-backed
securities market) of Mortgage Loans but performs one or more discrete functions identified in Item
1122(d) of Regulation AB with respect to Mortgage Loans under the direction or authority of the
Company or a Subservicer.

2

 

     Subservicer: Any Person that services Mortgage Loans on behalf of the Company or any
Subservicer and is responsible for the performance (whether directly or through Subservicers or
Subcontractors) of a substantial portion of the material servicing functions required to be
performed by the Company under this Agreement or any Reconstitution Agreement that are identified
in Item 1122(d) of Regulation AB; provided, however, that the term “Subservicer” shall not include
any master servicer, or any special servicer engaged at the request of a Depositor, Purchaser or
investor in a Securitization Transaction, nor any “back-up servicer” or trustee performing
servicing functions on behalf of a Securitization Transaction.

     Third-Party Originator: Each Person, other than a Qualified Correspondent, that
originated Mortgage Loans acquired by the Company.

     Whole Loan Transfer: Any sale or transfer of some or all of the Mortgage Loans, other
than a Securitization Transaction.

2. The Purchaser and the Company agree that the Existing Agreement is hereby amended by adding the
following provisions:

     (a) Intent of the Parties; Reasonableness.

     The Purchaser and the Company acknowledge and agree that the purpose of Article 2 of this
Agreement is to facilitate compliance by the Purchaser and any Depositor with the provisions of
Regulation AB and related rules and regulations of the Commission. Neither the Purchaser nor any
Depositor shall exercise its right to request delivery of information or other performance under
these provisions other than in good faith, or for purposes other than compliance with the
Securities Act, the Exchange Act and the rules and regulations of the Commission thereunder. The
Company acknowledges that interpretations of the requirements of Regulation AB may change over
time, whether due to interpretive guidance provided by the Commission or its staff, and agrees to
negotiate in good faith with the Purchaser or any Depositor with regard to any reasonable requests
for delivery of information under these provisions on the basis of evolving interpretations of
Regulation AB. In connection with any Securitization Transaction, the Company shall cooperate
fully with the Purchaser to deliver to the Purchaser (including any of its assignees or designees)
and any Depositor, any and all statements, reports, certifications, records and any other
information necessary to permit the Purchaser or such Depositor to comply with the provisions of
Regulation AB, together with such disclosures relating to the Company, and any parties or items
identified in writing by the Purchaser, including, any Subservicer, any Third-Party Originator and
the Mortgage Loans, or the servicing of the Mortgage Loans necessary in order to effect such
compliance.

     The Purchaser agrees that it will cooperate with the Company and provide sufficient and timely
notice of any information requirements pertaining to a Securitization Transaction. The Purchaser
will make all reasonable efforts to contain requests for information, reports or any other
materials to items required for compliance with Regulation AB, and shall not request information
which is not required for such compliance.

3

 

     (b) Additional Representations and Warranties of the Company.

     (i) The Company hereby represents to the Purchaser and to any Depositor, as of the date
on which information is first provided to the Purchaser or any Depositor under Section 2(c)
that, except as disclosed in writing to the Purchaser or such Depositor prior to such date:
(i) the Company is not aware and has not received notice that any default, early
amortization or other performance triggering event has occurred as to any other
securitization due to any act or failure to act of the Company; (ii) the Company has not
been terminated as servicer in a residential mortgage loan securitization, either due to a
servicing default or to application of a servicing performance test or trigger; (iii) no
material noncompliance with the applicable servicing criteria with respect to other
securitizations of residential mortgage loans involving the Company as servicer has been
disclosed or reported by the Company; (iv) no material changes to the Company’s policies or
procedures with respect to the servicing function it will perform under this Agreement and
any Reconstitution Agreement for mortgage loans of a type similar to the Mortgage Loans have
occurred during the three-year period immediately preceding the related Securitization
Transaction; (v) there are no aspects of the Company’s financial condition that could have a
material adverse effect on the performance by the Company of its servicing obligations under
this Agreement or any Reconstitution Agreement; (vi) there are no material legal or
governmental proceedings pending (or known to be contemplated) against the Company, any
Subservicer or any Third-Party Originator; and (vii) there are no affiliations,
relationships or transactions required to be disclosed under Item 1119 between the Company
and any of the parties listed in Section 2(c)(i)(D)(4)-(9) which are identified in writing
by the Purchaser or Depositor in advance of the Securitization Transaction pursuant to
Section 2(c)(i)(D) of this Amendment Reg AB.

     (ii) If so requested by the Purchaser or any Depositor on any date following the date
on which information is first provided to the Purchaser or any Depositor under Section 2(c),
the Company shall, within ten Business Days following such request, confirm in writing the
accuracy of the representations and warranties set forth in paragraph (i) of this Section
or, if any such representation and warranty is not accurate as of the date of such request,
provide reasonably adequate disclosure of the pertinent facts, in writing, to the requesting
party.

     (c) Information to Be Provided by the Company.

     In connection with any Securitization Transaction the Company shall (1) within ten Business
Days following request by the Purchaser or any Depositor, provide to the Purchaser and such
Depositor (or, as applicable, cause each Third-Party Originator and each Subservicer to provide),
in writing reasonably required for compliance with Regulation AB, the information and materials
specified in paragraphs (i), (ii), (iii) and (vi) of this Section 2(c), and (2) as promptly as
practicable following notice to or discovery by the Company, provide to the Purchaser and any

4

 

Depositor (as required by Regulation AB) the information specified in paragraph (iv) of this
Section.

     (i) If so requested by the Purchaser or any Depositor, the Company shall provide such
information regarding (x) the Company, as originator of the Mortgage Loans (including as an
acquirer of Mortgage Loans from a Qualified Correspondent, if applicable), or (y) as
applicable, each Third-Party Originator, and (z) as applicable, each Subservicer, as is
requested for the purpose of compliance with Items 1103(a)(1), 1105 (subject to paragraph
(b) below), 1110, 1117 and 1119 of Regulation AB. Such information shall include, at a
minimum:

     (A) the originator’s form of organization;

     (B) to the extent material, a description of the originator’s origination
program and how long the originator has been engaged in originating residential
mortgage loans, which description shall include a discussion of the originator’s
experience in originating mortgage loans of a similar type as the Mortgage Loans; if
material, information regarding the size and composition of the originator’s
origination portfolio; and information that may be material to an analysis of the
performance of the Mortgage Loans, including the originators’ credit-granting or
underwriting criteria for mortgage loans of similar type(s) as the Mortgage Loans
and such other information as the Purchaser or any Depositor may reasonably request
for the purpose of compliance with Item 1110(b)(2) of Regulation AB;

     (C) a brief description of any material legal or governmental proceedings
pending (or known to be contemplated by a governmental authority) against the
Company, each Third-Party Originator, if applicable, and each Subservicer; and

     (D) a description of any affiliation or relationship between the Company, each
Third-Party Originator, if applicable, each Subservicer and any of the following
parties to a Securitization Transaction, as such parties are identified to the
Company by the Purchaser or any Depositor in writing within ten days in advance of
such Securitization Transaction:

	 	(1)	 	any servicer;
	 
	 	(2)	 	any trustee;
	 
	 	(3)	 	any originator;
	 
	 	(4)	 	any significant obligor;
	 
	 	(5)	 	any enhancement or support provider; and
	 
	 	(6)	 	any other material transaction party.

     (ii) If so requested by the Purchaser or any Depositor, and required by Regulation AB,
the Company shall provide (or, as applicable, cause each Third-Party
Originator to provide) Static Pool Information with respect to the mortgage loans (of a
similar type as the Mortgage Loans, as reasonably identified by the Purchaser as provided

5

 

below) originated by (a) the Company, if the Company is an originator of Mortgage Loans
(including as an acquirer of Mortgage Loans from a Qualified Correspondent, if applicable),
and/or (b) as applicable, each Third-Party Originator. Such Static Pool Information shall
be prepared by the Company (or, if applicable, the Third-Party Originator) on the basis of
its reasonable, good faith interpretation of the requirements of Item 1105(a)(1)-(3) of
Regulation AB. To the extent that there is reasonably available to the Company (or
Third-Party Originator, as applicable) Static Pool Information with respect to more than one
mortgage loan type, the Purchaser or any Depositor shall be entitled to specify whether some
or all of such information shall be provided pursuant to this paragraph. The content of
such Static Pool Information may be in the form customarily provided by the Company, and
need not be customized for the Purchaser or any Depositor. Such Static Pool Information for
each vintage origination year or prior securitized pool, as applicable, shall be presented
in increments no less frequently than quarterly over the life of the mortgage loans included
in the vintage origination year or prior securitized pool. The most recent periodic
increment must be as of a date no later than 135 days prior to the date of the prospectus or
other offering document in which the Static Pool Information is to be included or
incorporated by reference. The Static Pool Information shall be provided in an electronic
format that provides a permanent record of the information provided, such as a portable
document format (pdf) file, or other such electronic format.

     Promptly following notice or discovery of a material error, as determined in the Company’s
judgment, in Static Pool Information provided pursuant to the immediately preceding paragraph
(including an omission to include therein information required to be provided pursuant to such
paragraph) during the applicable offering period for the securities, the Company shall provide
corrected Static Pool Information to the Purchaser or any Depositor, as applicable, in the same
format in which Static Pool Information was previously provided to such party by the Company.

     If so requested by the Purchaser or any Depositor, the Company shall provide (or, as
applicable, cause each Third-Party Originator to provide), at the expense of the requesting
party (to the extent of any additional incremental expense associated with delivery pursuant
to this Agreement), agreed-upon procedures letters of certified public accountants
pertaining to Static Pool Information relating to prior securitized pools for
securitizations closed on or after January 1, 2006 or, in the case of Static Pool
Information with respect to the Company’s or, if applicable, Third-Party Originator’s
originations or purchases, to calendar months commencing January 1, 2006, as the Purchaser
or such Depositor shall reasonably request. Such statements and letters shall be addressed
to and be for the benefit of such parties as the Purchaser or such Depositor shall
designate, which shall be limited to any Sponsor, any Depositor, any broker dealer acting as
underwriter, placement agent or initial purchaser with respect to a Securitization
Transaction or any other party that is reasonably and customarily entitled to receive such
statements and letters in a Securitization Transaction. Any such statement or letter may
take the form of
a standard, generally applicable document accompanied by a reliance letter authorizing
reliance by the addressees designated by the Purchaser or such Depositor.

6

 

     (iii) If reasonably requested by the Purchaser or any Depositor, the Company shall
provide such information regarding the Company, as servicer of the Mortgage Loans, and each
Subservicer (each of the Company and each Subservicer, for purposes of this paragraph, a
“Servicer”), as is reasonably requested for the purpose of compliance with Items 1108 of
Regulation AB. Such information shall include, at a minimum:

     (A) the Servicer’s form of organization;

     (B) a description of how long the Servicer has been servicing residential
mortgage loans; a general discussion of the Servicer’s experience in servicing
assets of any type as well as a more detailed discussion of the Servicer’s
experience in, and procedures for, the servicing function it will perform under this
Agreement and any Reconstitution Agreements; information regarding the size,
composition and growth of the Servicer’s portfolio of residential mortgage loans of
a type similar to the Mortgage Loans and information on factors related to the
Servicer that may be material, in the reasonable determination of the Purchaser or
any Depositor, to any analysis of the servicing of the Mortgage Loans or the related
asset-backed securities, as applicable, including, without limitation:

     (1) whether any prior securitizations of mortgage loans of a type
similar to the Mortgage Loans involving the Servicer have defaulted or
experienced an early amortization or other performance triggering event
because of servicing during the three-year period immediately preceding the
related Securitization Transaction;

     (2) the extent of outsourcing the Servicer utilizes;

     (3) whether there has been previous disclosure of material
noncompliance with the applicable servicing criteria with respect to other
securitizations of residential mortgage loans involving the Servicer as a
servicer during the three-year period immediately preceding the related
Securitization Transaction;

     (4) whether the Servicer has been terminated as servicer in a
residential mortgage loan securitization, either due to a servicing default
or to application of a servicing performance test or trigger; and

     (5) such other information as the Purchaser or any Depositor may
reasonably request for the purpose of compliance with Item 1108(b)(2) of
Regulation AB;

     (C) a description of any material changes during the three-year period
immediately preceding the related Securitization Transaction to the Servicer’s
policies or procedures with respect to the servicing function it will perform under
this Agreement and any Reconstitution Agreements for mortgage loans of a type
similar to the Mortgage Loans;

     (D) information regarding the Servicer’s financial condition, to the extent
that there is a material risk that an adverse financial event or circumstance

7

 

involving the Servicer could have a material adverse effect on the performance by
the Company of its servicing obligations under this Agreement or any Reconstitution
Agreement;

     (E) information regarding advances made by the Servicer on the Mortgage Loans
and the Servicer’s overall servicing portfolio of residential mortgage loans for the
three-year period immediately preceding the related Securitization Transaction,
which may be limited to a statement by an authorized officer of the Servicer to the
effect that the Servicer has made all advances required to be made on residential
mortgage loans serviced by it during such period, or, if such statement would not be
accurate, information regarding the percentage and type of advances not made as
required, and the reasons for such failure to advance;

     (F) a description of the Servicer’s processes and procedures designed to
address any special or unique factors involved in servicing loans of a similar type
as the Mortgage Loans;

     (G) a description of the Servicer’s processes for handling delinquencies,
losses, bankruptcies and recoveries, such as through liquidation of mortgaged
properties, sale of defaulted mortgage loans or workouts; and

     (H) information as to how the Servicer defines or determines delinquencies and
charge-offs, including the effect of any grace period, re-aging, restructuring,
partial payments considered current or other practices with respect to delinquency
and loss experience.

     (iv) For the purpose of satisfying its reporting obligation under the Exchange Act with
respect to any class of asset-backed securities, the Company shall (or shall cause each
Subservicer and, if applicable, any Third-Party Originator to) (a) provide prompt notice to
the Purchaser, any Master Servicer and any Depositor in writing of (1) any merger,
consolidation or sale of substantially all of the assets of the Company, (2) the Company’s
entry into an agreement with a Subservicer to perform or assist in the performance of any of
the Company’s obligations under the Agreement or any Reconstitution Agreement that qualifies
as an “entry into a material definitive agreement” under Item 1.01 of the form 8-K, (3) any
Event of Default under the terms of the Agreement or any Reconstitution Agreement to the
extent not known by such Purchaser, Master Servicer or Depositor, and (4) any material
litigation or governmental proceedings involving the Company, any Subservicer or any Third
Party Originator.

     (v) As a condition to the succession to the Company or any Subservicer as servicer or
subservicer under this Agreement or any applicable Reconstitution Agreement related thereto
by any Person (i) into which the Company or such Subservicer may be merged or consolidated,
or (ii) which may be appointed as a successor to the Company or
any Subservicer, the Company shall provide to the Purchaser, the Master Servicer and
any Depositor, at least 15 calendar days prior to the effective date of such succession or

8

 

appointment, (x) written notice to the Purchaser and any Depositor of such succession or
appointment and (y) in writing, all information reasonably requested by the Purchaser or any
Depositor in order to comply with its reporting obligation under Item 6.02 of Form 8-K with
respect to any class of asset-backed securities.

     (vi) The Company shall provide to the Purchaser and any Depositor a description of any
affiliation or relationship required to be disclosed under Item 1119 between the Company and
any of the parties listed in Items 1119 (a)(1)-(6) of Regulation AB that develops following
the closing date of a Securitization Transaction (other than an affiliation or relationship
that the Purchaser, the Depositor or the issuing entity is required to disclose under Item
1119 of Regulation AB) no later than 15 calendar days prior to the date the Depositor is
required to file its Form 10-K disclosing such affiliation or relationship. For purposes of
the foregoing, the Company (1) shall be entitled to assume that the parties to the
Securitization Transaction with whom affiliations or relations must be disclosed are the
same as on the closing date if it provides a written request (which may be by e-mail) to the
Depositor or Master Servicer, as applicable, requesting such confirmation and either obtains
such confirmation or receives no response within three (3) Business Days, (2) shall not be
obligated to disclose any affiliations or relationships that may develop after the closing
date for the Securitization Transaction with any parties not identified to the Company
pursuant to clause (D) of paragraph (i) of this Section 2(c), and (3) shall be entitled to
rely upon any written identification of parties provided by the Depositor, the Purchaser or
any master servicer.

     (vii) Not later than ten days prior to the deadline for the filing of any distribution
report on Form 10-D in respect of any Securitization Transaction that includes any of the
Mortgage Loans serviced by the Company or any Subservicer, the Company or such Subservicer,
as applicable, shall, to the extent the Company or such Subservicer has knowledge, provide
to the party responsible for filing such report (including, if applicable, the Master
Servicer) notice of the occurrence of any of the following events along with all
information, data, and materials related thereto as may be required to be included in the
related distribution report on Form 10-D:

          (a) any material modifications, extensions or waivers of Mortgage Loan terms, fees,
penalties or payments during the distribution period;

          (b) material breaches of Mortgage Loan representations or warranties or transaction
covenants under the Existing Agreement, as amended herein; and

          (c) information regarding any Mortgage Loan changes (such as, additions, substitutions
or repurchases) and with respect to a mortgage loan that the Company has substituted as a
replacement for a Mortgage Loan (“Substituted Mortgage Loan”), the origination, underwriting
and, if applicable, other Company criteria for the acquisition or selection of such
Substituted Mortgage Loan.

     (d) Servicer Compliance Statement.

9

 

     On or before March 5 of each calendar year, commencing in 2007, the Company shall deliver to
the Purchaser, the Master Servicer and the Depositor a statement of compliance addressed to the
Purchaser and such Depositor and signed by an authorized officer of the Company, to the effect that
(i) a review of the Company’s servicing activities during the immediately preceding calendar year
(or applicable portion thereof) and of its performance under the servicing provisions of this
Agreement and any applicable Reconstitution Agreement during such period has been made under such
officer’s supervision, and (ii) to the best of such officers’ knowledge, based on such review, the
Company has fulfilled all of its servicing obligations under this Agreement and any applicable
Reconstitution Agreement in all material respects throughout such calendar year (or applicable
portion thereof) or, if there has been a failure to fulfill any such obligation in any material
respect, specifically identifying each such failure known to such officer and the nature and the
status thereof.

     (e) Report on Assessment of Compliance and Attestation.

     (i) On or before March 5 of each calendar year, commencing in 2007, the Company shall:

     (A) deliver to the Purchaser, the Master Servicer and the Depositor a report
regarding the Company’s assessment of compliance with the Servicing Criteria during
the immediately preceding calendar year, as required under Rules 13a-18 and 15d-18
of the Exchange Act and Item 1122 of Regulation AB. Such report shall be addressed
to the Purchaser and such Depositor and signed by an authorized officer of the
Company, and shall address each of the applicable Servicing Criteria specified on
Exhibit A hereto (wherein “Investor” shall mean the Master Servicer);

     (B) deliver to the Purchaser, the Master Servicer and the Depositor a report of
a registered public accounting firm that attests to, and reports on, the assessment
of compliance made by the Company and delivered pursuant to the preceding paragraph.
Such attestation shall be in accordance with Rules 1-02(a)(3) and 2-02(g) of
Regulation S-X under the Securities Act and the Exchange Act;

     (C) if required by Regulation AB, cause each Subservicer and each Subcontractor
determined by the Company pursuant to Section 2(f)(ii) to be “participating in the
servicing function” within the meaning of Item 1122 of Regulation AB (each, a
“Participating Entity”), to deliver to the Purchaser, the Master Servicer and any
Depositor an assessment of compliance and accountants’ attestation as and when
provided in paragraphs (i) and (ii) of this Section 2(e); and

     (D) deliver and cause each Subservicer and Subcontractor described in Section
2(e)(i)(C) above to deliver to the Purchaser, the Master Servicer, Depositor or any
other Person that will be responsible for signing the certification (a “Sarbanes
Certification”) required by Rules 13a-14(d) and 15d-14(d) under the

10

 

Exchange Act
(pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) on behalf of an
asset-backed issuer with respect to a Securitization Transaction, signed by the
appropriate officer of the Company, in the form attached hereto as Exhibit B;
provided that such certification delivered by the Company may not be filed as an
exhibit to, or included in, any filing with the Commission.

     The Company acknowledges that the parties identified in clause (i)(D) above may rely on the
certification provided by the Company pursuant to such clause in signing a Sarbanes Certification
and filing such with the Commission.

     (ii) Each assessment of compliance provided by a Subservicer pursuant to Section
2(e)(i)(A) shall address each of the applicable Servicing Criteria specified on Exhibit A
hereto (wherein “Investor” shall mean the Master Servicer) delivered to the Purchaser
concurrently with the execution of this Agreement or, in the case of a Subservicer
subsequently appointed as such, on or prior to the date of such appointment. An assessment
of compliance provided by a Participating Entity pursuant to Section 2(e)(i)(C) need not
address any elements of the Servicing Criteria other than those specified by the Company
pursuant to Section 2(f).

     If reasonably requested by the Purchaser or the Master Servicer, the Company shall provide to
the Purchaser or the Master Servicer, evidence of the authorization of the person signing the
certificate or statement provided pursuant to Section 2(d) and 2(e) of this Amendment Reg AB.

     (f) Use of Subservicers and Subcontractors.

     The Company shall not hire or otherwise utilize the services of any Subservicer to fulfill any
of the obligations of the Company as servicer under this Agreement or any related Reconstitution
Agreement unless the Company complies with the provisions of paragraph (i) of this Subsection (f).
The Company shall not hire or otherwise utilize the services of any Subcontractor, and shall not
permit any Subservicer to hire or otherwise utilize the services of any Subcontractor, to fulfill
any of the obligations of the Company as servicer under this Agreement or any related
Reconstitution Agreement unless the Company complies with the provisions of paragraph (ii) of this
Subsection (f).

     (i) It shall not be necessary for the Company to seek the consent of the Purchaser, the
Master Servicer or any Depositor to the utilization of any Subservicer, provided however,
that the Company shall obtain such consent from the Purchaser when required by and in
accordance with the Existing Agreement. If required by Regulation AB, after reasonable
notice from the Purchaser of the parties involved in the Purchaser’s Securitization
Transaction, the Company shall cause any Subservicer used by the
Company (or by any Subservicer) for the benefit of the Purchaser and any Depositor to
comply with the provisions of this Section and with Sections 2(b), 2(c)(iii), 2(c)(v),
2(c)(vi), 2(c)(vii), 2(d), and 2(e) of this Agreement , and to provide the information
required with respect to such Subservicer under Section 2(c)(iv) of this Agreement. The
Company shall be responsible for obtaining from each Subservicer and delivering to the

11

 

Purchaser and any Depositor any servicer compliance statement required to be delivered by
such Subservicer under Section 2(d), any assessment of compliance and attestation required
to be delivered by such Subservicer under Section 2(e) and any certification required to be
delivered to the Person that will be responsible for signing the Sarbanes Certification
under Section 2(e) as and when required to be delivered.

     (ii) It shall not be necessary for the Company to seek the consent of the Purchaser,
the Master Servicer or any Depositor to the utilization of any Subcontractor, provided
however, that the Company shall obtain such consent from the Purchaser when required by and
in accordance with the Existing Agreement. , If required by Regulation AB, after
reasonable notice from the Purchaser of the parties involved in the Purchaser’s
Securitization Transaction, the Company shall promptly upon request provide to the Purchaser
and any Depositor (or any designee of the Depositor, such as the Master Servicer or
administrator) a written description of the role and function of each Subcontractor
utilized by the Company or any Subservicer, specifying (A) the identity of each such
Subcontractor, (B) which (if any) of such Subcontractors are Participating Entities, and (C)
which elements of the Servicing Criteria will be addressed in assessments of compliance
provided by each Participating Entity identified pursuant to clause (B) of this paragraph.

     The Company shall cause any such Participating Entity used by the Company (or by any
Subservicer) for the benefit of the Purchaser and any Depositor to comply with the provisions of
Section 2(e) of this Agreement. The Company shall be responsible for obtaining from each
Participating Entity and delivering to the Purchaser, the Master Servicer and the Depositor any
assessment of compliance and attestation and certificate required to be delivered by such
Participating Entity under Section 2(e), in each case as and when required to be delivered.

     (g) Indemnification; Remedies.

     (i) The Company shall indemnify the Purchaser and each of the following parties
participating in a Securitization Transaction: each sponsor and issuing entity; each Person
responsible for the execution or filing of any report required to be filed with the
Commission with respect to such Securitization Transaction, or for execution of a
certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act with
respect to such Securitization Transaction; each Person who controls any of such parties
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act);
and the respective present and former directors, officers and employees of each of the
foregoing and of the Depositor, and shall hold each of them harmless from and against any
losses, damages, penalties, fines, forfeitures, legal fees and expenses and related costs,
judgments, and any other costs, fees and expenses that any of them may sustain arising
out of or based upon:

     (A)(1) any untrue statement of a material fact contained or alleged to be
contained in any written information, written report, certification or other
material provided under this Amendment Reg AB by or on behalf of the Company, or
provided under this Amendment Reg AB by or on behalf of any Subservicer,

12

 

Participating Entity or, if applicable, Third-Party Originator (collectively, the
“Company Information”), or (2) the omission or alleged omission to state in the
Company Information a material fact required to be stated in the Company Information
or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, by way of
clarification, that clause (2) of this paragraph shall be construed solely by
reference to the Company Information and not to any other information communicated
in connection with a sale or purchase of securities, without regard to whether the
Company Information or any portion thereof is presented together with or separately
from such other information;

     (B) any failure by the Company, any Subservicer, any Participating Entity or
any Third-Party Originator to deliver any information, report, certification,
accountants’ letter or other material when and as required under this Amendment Reg
AB, including any failure by the Company to identify pursuant to Section 2(f)(ii)
any Participating Entity; or

     (C) any breach by the Company of a representation or warranty set forth in
Section 2(b)(i) or in a writing furnished pursuant to Section 2(b)(ii) and made as
of a date prior to the closing date of the related Securitization Transaction, to
the extent that such breach is not cured by such closing date, or any breach by the
Company of a representation or warranty in a writing furnished pursuant to Section
2(b)(ii) to the extent made as of a date subsequent to such closing date.

     In the case of any failure of performance described in clause (i)(B) of this Section, the
Company shall promptly reimburse the Purchaser, any Depositor, as applicable, and each Person
responsible for the execution or filing of any report required to be filed with the Commission with
respect to such Securitization Transaction, or for execution of a certification pursuant to Rule
13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such Securitization Transaction,
for all costs reasonably incurred by each such party in order to obtain the information, report,
certification, accountants’ letter or other material not delivered as required by the Company, any
Subservicer, any Participating Entity or any Third-Party Originator.

     (ii) (A) Any failure by the Company, any Subservicer, any Participating Entity or any
Third-Party Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under this Amendment Reg AB, shall, except as
provided in clause (B) of this paragraph, if not cured within three (3)
Business Days of the Company’s receipt of notice of failure (or immediately and
automatically, without notice or grace period, in the event that such failure will result or
has resulted in the Purchaser’s or its affiliated sponsor’s loss of right, for which the
Purchaser or Depositor cannot obtain a waiver from the Commission, to maintain any
registration statement relating to securitization transactions of the same type as the
Securitization Transactions contemplated hereunder) constitute an Event of Default with
respect to the Company under this Agreement and any applicable Reconstitution Agreement, and
shall entitle the Purchaser or Depositor, as applicable, in its sole

13

 

discretion to terminate
the rights and obligations of the Company as servicer under this Agreement and/or any
applicable Reconstitution Agreement related thereto without payment (notwithstanding
anything in this Agreement or any applicable Reconstitution Agreement related thereto to the
contrary) of any compensation to the Company (and if the Company is servicing any of the
Mortgage Loans in a Securitization Transaction, appoint a successor servicer reasonably
acceptable to any Master Servicer for such Securitization Transaction); provided, however it
is understood that the Company shall remain entitled to receive reimbursement for all
unreimbursed Monthly Advances and Servicing Advances made by the Company under this
Agreement and/or any applicable Reconstitution Agreement. Notwithstanding anything to the
contrary set forth herein, to the extent that any provision of this Agreement and/or any
applicable Reconstitution Agreement expressly provides for the survival of certain rights or
obligations following termination of the Company as servicer, such provision shall be given
effect.

     (B) Any failure by the Company, any Subservicer or any Participating Entity to
deliver any information, report, certification or accountants’ letter required under
Regulation AB when and as required under Section 2(d) or 2(e), including any failure
by the Company to identify a Participating Entity, which continues unremedied for
nine calendar days after receipt by the Company of written notice of such failure
from the Purchaser or Depositor shall constitute an Event of Default with respect to
the Company under this Agreement and any applicable Reconstitution Agreement, and
shall entitle the Purchaser or Depositor, as applicable, in its sole discretion to
terminate the rights and obligations of the Company as servicer under this Agreement
and/or any applicable Reconstitution Agreement without payment (notwithstanding
anything in this Agreement to the contrary) of any compensation to the Company;
provided, however it is understood that the Company shall remain entitled to receive
reimbursement for all unreimbursed Monthly Advances and Servicing Advances made by
the Company under this Agreement and/or any applicable Reconstitution Agreement.
Notwithstanding anything to the contrary set forth herein, to the extent that any
provision of this Agreement and/or any applicable Reconstitution Agreement expressly
provides for the survival of certain rights or obligations following termination of
the Company as servicer, such provision shall be given effect.

     (C) The Company shall promptly reimburse the Purchaser (or any affected
designee of the Purchaser, such as a master servicer) and any Depositor, as
applicable, for all reasonable expenses incurred by the Purchaser (or such
designee) or such Depositor as such are incurred, in connection with the
termination of the Company as servicer and the transfer of servicing of the Mortgage
Loans to a successor servicer. The provisions of this paragraph shall not limit
whatever rights the Company, the Purchaser or any Depositor may have under other
provisions of this Agreement and/or any applicable Reconstitution Agreement or
otherwise, whether in equity or at law, such as an action for damages, specific
performance or injunctive relief.

14

 

     (iii) The Purchaser agrees to indemnify and hold harmless the Company, any Subservicer,
any Participating Entity, and, if applicable, any Third-Party Originator, each Person who
controls any of such parties (within the meaning of Section 15 of the Securities Act and
Section 20 of the Exchange Act), and the respective present and former directors, officers
and employees of each of the foregoing from and against any losses, damages, penalties,
fines, forfeitures, legal fees and expenses and related costs, judgments, and any other
costs, fees and expenses that any of them may sustain arising out of or based upon any
untrue statement or alleged untrue statement of any material fact contained in any filing
with the Commission or the omission or alleged omission to state in any filing with the
Commission a material fact required to be stated or necessary to be stated in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading, in each case to the extent, but only to the extent, that such untrue statement,
alleged untrue statement, omission, or alleged omission relates to any filing with the
Commission other than the Company Information.

          (iv) If the indemnification provided for herein is unavailable or insufficient to hold
harmless the indemnified party, then the indemnifying party agrees that it shall contribute to the
amount paid or payable by such indemnified party as a result of any claims, losses, damages or
liabilities uncured by such indemnified party in such proportion as is appropriate to reflect the
relative fault of such indemnified party on the one hand and the indemnifying party on the other.

          (v) The indemnifications provided for in Section 2(g) shall survive the termination of this
Amendment Reg AB or the termination of any party to this Amendment Reg AB.

3. Notwithstanding any other provision of this Amendment Reg AB, the Company shall seek the consent
of the Purchaser for the utilization of all Subservicers and Participating Entities, when required
by and in accordance with the terms of the Existing Agreement.

4. The Existing Agreement is hereby amended by adding the Exhibit attached hereto as Exhibit A to
the end thereto. References in this Amendment Reg AB to “this Agreement” or words of similar
import (including indirect references to the Agreement) shall be deemed to be references to the
Existing Agreement as amended by this Amendment Reg AB. Except as expressly amended and modified
by this Amendment Reg AB, the Agreement shall continue to be, and shall remain, in full force and
effect in accordance with its terms. In the event of
a conflict between this Amendment Reg AB and any other document or agreement, including without
limitation the Existing Agreement, this Amendment Reg AB shall control.

5. This Amendment Reg AB may be executed in one or more counterparts and by different parties
hereto on separate counterparts, each of which, when so executed, shall constitute one and the same
agreement. This Amendment Reg AB will become effective as of the date first mentioned above. This
Amendment Reg AB shall bind and inure to the benefit of and be enforceable by the

15

 

Company and the Purchaser and the respective permitted successors and assigns of the Company and the successors and
assigns of the Purchaser.

[Signature Page Follows]

16

 

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

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	RWT HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Purchaser	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	COUNTRYWIDE HOME LOANS, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Company	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 

Signature page to Amendment Reg AB

 

 

EXHIBIT A

SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

     The assessment of compliance to be delivered by [the Company] [Name of Subservicer] shall
address, at a minimum, the applicable criteria identified below as “Applicable Servicing Criteria”:

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	 

	 	General Servicing Considerations	 	 
	 
	 	 	 	 
	1122(d)(1)(i)

	 	Policies and procedures are
instituted to monitor any
performance or other triggers and
events of default in accordance
with the transaction agreements.
	 	X
	 
	 	 	 	 
	1122(d)(1)(ii)

	 	If any material servicing
activities are outsourced to
third parties, policies and
procedures are instituted to
monitor the third party’s
performance and compliance with
such servicing activities.
	 	X
	 
	 	 	 	 
	1122(d)(1)(iii)

	 	Any requirements in the
transaction agreements to
maintain a back-up servicer for
the mortgage loans are
maintained.	 	 
	 
	 	 	 	 
	1122(d)(1)(iv)

	 	A fidelity bond and errors and
omissions policy is in effect on
the party participating in the
servicing function throughout the
reporting period in the amount of
coverage required by and
otherwise in accordance with the
terms of the transaction
agreements.
	 	X
	 
	 	 	 	 
	 

	 	Cash Collection and Administration	 	 
	 
	 	 	 	 
	1122(d)(2)(i)

	 	Payments on mortgage loans are
deposited into the appropriate
custodial bank accounts and
related bank clearing accounts no
more than two business days
following receipt, or such other
number of days specified in the
transaction agreements.
	 	X
	 
	 	 	 	 
	1122(d)(2)(ii)

	 	Disbursements made via wire
transfer on behalf of an obligor
or to an investor are made only
by authorized personnel.
	 	X
	 
	 	 	 	 
	1122(d)(2)(iii)

	 	Advances of funds or guarantees
regarding collections, cash flows
or distributions, and any
interest or other fees charged
for such advances, are made,
reviewed and approved as
specified in the transaction
agreements.
	 	X
	 
	 	 	 	 
	1122(d)(2)(iv)

	 	The related accounts for the
transaction, such as cash reserve
accounts or accounts established
as a form of
overcollateralization, are
separately maintained (e.g., with
respect to commingling of cash)
as set forth in the transaction
agreements.
	 	X
	 
	 	 	 	 
	1122(d)(2)(v)

	 	Each custodial account is
maintained at a federally insured
depository institution as set
forth in the transaction
agreements. For purposes of this
criterion, “federally insured
depository institution” with
respect to a foreign financial
institution means a foreign
financial institution that meets
the requirements of Rule
13k-1(b)(1) of the Securities
Exchange Act.
	 	X
	 
	 	 	 	 
	1122(d)(2)(vi)

	 	Unissued checks are safeguarded
so as to prevent unauthorized
access.
	 	X

A-1

 

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	1122(d)(2)(vii)

	 	Reconciliations are prepared on a
monthly basis for all
asset-backed securities related
bank accounts, including
custodial accounts and related
bank clearing accounts. These
reconciliations are (A)
mathematically accurate; (B)
prepared within 30 calendar days
after the bank statement cutoff
date, or such other number of
days specified in the transaction
agreements; (C) reviewed and
approved by someone other than
the person who prepared the
reconciliation; and (D) contain
explanations for reconciling
items. These reconciling items
are resolved within 90 calendar
days of their original
identification, or such other
number of days specified in the
transaction agreements.
	 	X
	 
	 	 	 	 
	 

	 	Investor Remittances and Reporting	 	 
	 
	 	 	 	 
	1122(d)(3)(i)

	 	Reports to investors, including
those to be filed with the
Commission, are maintained in
accordance with the transaction
agreements and applicable
Commission requirements.
Specifically, such reports (A)
are prepared in accordance with
timeframes and other terms set
forth in the transaction
agreements; (B) provide
information calculated in
accordance with the terms
specified in the transaction
agreements; (C) are filed with
the Commission as required by its
rules and regulations; and (D)
agree with investors’ or the
trustee’s records as to the total
unpaid principal balance and
number of mortgage loans serviced
by the Servicer.
	 	X
	 
	 	 	 	 
	1122(d)(3)(ii)

	 	Amounts due to investors are
allocated and remitted in
accordance with timeframes,
distribution priority and other
terms set forth in the
transaction agreements.
	 	X
	 
	 	 	 	 
	1122(d)(3)(iii)

	 	Disbursements made to an investor
are posted within two business
days to the Servicer’s investor
records, or such other number of
days specified in the transaction
agreements.
	 	X
	 
	 	 	 	 
	1122(d)(3)(iv)

	 	Amounts remitted to investors per
the investor reports agree with
cancelled checks, or other form
of payment, or custodial bank
statements.
	 	X
	 
	 	 	 	 
	 

	 	Pool Asset Administration	 	 
	 
	 	 	 	 
	1122(d)(4)(i)

	 	Collateral or security on
mortgage loans is maintained as
required by the transaction
agreements or related mortgage
loan documents.
	 	X
	 
	 	 	 	 
	1122(d)(4)(ii)

	 	Mortgage loan and related
documents are safeguarded as
required by the transaction
agreements
	 	X
	 
	 	 	 	 
	1122(d)(4)(iii)

	 	Any additions, removals or
substitutions to the asset pool
are made, reviewed and approved
in accordance with any conditions
or requirements in the
transaction agreements.
	 	X
	 
	 	 	 	 
	1122(d)(4)(iv)

	 	Payments on mortgage loans,
including any payoffs, made in
accordance with the related
mortgage loan documents are
posted to the Servicer’s obligor
records maintained no more than
two business days after receipt,
or such other number of days
specified in the transaction
agreements, and allocated to
principal, interest or other
items (e.g., escrow) in
accordance with the related
mortgage loan documents.
	 	X
	 
	 	 	 	 
	1122(d)(4)(v)

	 	The Servicer’s records regarding
the mortgage loans agree with the
Servicer’s records with respect
to an obligor’s unpaid principal
balance.
	 	X

A-2

 

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	1122(d)(4)(vi)

	 	Changes with respect to the terms
or status of an obligor’s
mortgage loans (e.g., loan
modifications or re-agings) are
made, reviewed and approved by
authorized personnel in
accordance with the transaction
agreements and related pool asset
documents.
	 	X
	 
	 	 	 	 
	1122(d)(4)(vii)

	 	Loss mitigation or recovery
actions (e.g., forbearance plans,
modifications and deeds in lieu
of foreclosure, foreclosures and
repossessions, as applicable) are
initiated, conducted and
concluded in accordance with the
timeframes or other requirements
established by the transaction
agreements.
	 	X
	 
	 	 	 	 
	1122(d)(4)(viii)

	 	Records documenting collection
efforts are maintained during the
period a mortgage loan is
delinquent in accordance with the
transaction agreements. Such
records are maintained on at
least a monthly basis, or such
other period specified in the
transaction agreements, and
describe the entity’s activities
in monitoring delinquent mortgage
loans including, for example,
phone calls, letters and payment
rescheduling plans in cases where
delinquency is deemed temporary
(e.g., illness or unemployment).
	 	X
	 
	 	 	 	 
	1122(d)(4)(ix)

	 	Adjustments to interest rates or
rates of return for mortgage
loans with variable rates are
computed based on the related
mortgage loan documents.
	 	X
	 
	 	 	 	 
	1122(d)(4)(x)

	 	Regarding any funds held in trust
for an obligor (such as escrow
accounts): (A) such funds are
analyzed, in accordance with the
obligor’s mortgage loan
documents, on at least an annual
basis, or such other period
specified in the transaction
agreements; (B) interest on such
funds is paid, or credited, to
obligors in accordance with
applicable mortgage loan
documents and state laws; and (C)
such funds are returned to the
obligor within 30 calendar days
of full repayment of the related
mortgage loans, or such other
number of days specified in the
transaction agreements.
	 	X
	 
	 	 	 	 
	1122(d)(4)(xi)

	 	Payments made on behalf of an
obligor (such as tax or insurance
payments) are made on or before
the related penalty or expiration
dates, as indicated on the
appropriate bills or notices for
such payments, provided that such
support has been received by the
servicer at least 30 calendar
days prior to these dates, or
such other number of days
specified in the transaction
agreements.
	 	X
	 
	 	 	 	 
	1122(d)(4)(xii)

	 	Any late payment penalties in
connection with any payment to be
made on behalf of an obligor are
paid from the servicer’s funds
and not charged to the obligor,
unless the late payment was due
to the obligor’s error or
omission.
	 	X
	 
	 	 	 	 
	1122(d)(4)(xiii)

	 	Disbursements made on behalf of
an obligor are posted within two
business days to the obligor’s
records maintained by the
servicer, or such other number of
days specified in the transaction
agreements.
	 	X

A-3

 

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	1122(d)(4)(xiv)

	 	Delinquencies, charge-offs and uncollectible
accounts are recognized and recorded in
accordance with the transaction agreements.
	 	X
	 
	 	 	 	 
	1122(d)(4)(xv)

	 	Any external enhancement or other support,
identified in Item 1114(a)(1) through (3) or Item
1115 of Regulation AB, is maintained as set forth
in the transaction agreements.	 	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	[NAME OF COMPANY] [NAME OF	 	 
	 	 	SUBSERVICER]	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

A-4

 

EXHIBIT B

FORM OF ANNUAL CERTIFICATION

     Re: The [          ] agreement dated as of [     ], 200[
] (the “Agreement”), among [IDENTIFY PARTIES]

     I,                                         , the                          
                of Countrywide Home Loans,
Inc., certify to [the Purchaser], [the Depositor], [Master Servicer], [Securities Administrator] or
[Trustee], and its officers, with the knowledge and intent that they will rely upon this
certification, that:

     (1) I have reviewed the servicer compliance statement of the Company provided in
accordance with Item 1123 of Regulation AB (the “Compliance Statement”), the report on
assessment of the Company’s compliance with the servicing criteria set forth in Item 1122(d)
of Regulation AB (the “Servicing Criteria”), provided in accordance with Rules 13a-18 and
15d-18 under Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Item 1122
of Regulation AB (the “Servicing Assessment”), the registered public accounting firm’s
attestation report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
Act and Section 1122(b) of Regulation AB (the “Attestation Report”), and all servicing
reports, officer’s certificates and other information relating to the servicing of the
Mortgage Loans by the Company during 200[ ] that were delivered by the Company to the
[Depositor] [Master Servicer] [Securities Administrator] or [Trustee] pursuant to the
Agreement (collectively, the “Company Servicing Information”);

     (2) Based on my knowledge, the Company Servicing Information, taken as a whole, does
not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in the light of the circumstances under which such
statements were made, not misleading with respect to the period of time covered by the
Company Servicing Information;

     (3) Based on my knowledge, all of the Company Servicing Information required to be
provided by the Company under the Agreement has been provided to the [Depositor] [Master
Servicer] [Securities Administrator] or [Trustee];

     (4) I am responsible for reviewing the activities performed by the Company as servicer
under the Agreement, and based on my knowledge and the compliance review conducted in
preparing the Compliance Statement and except as disclosed in the Compliance Statement, the
Servicing Assessment or the Attestation Report, the Company has fulfilled its obligations
under the Agreement; and

[Intentionally Left Blank]

B-1

 

     (5) The Compliance Statement required to be delivered by the Company pursuant to this
Agreement, and the Servicing Assessment and Attestation Report required to be provided by
the Company and by each Subservicer and Participating Entity pursuant to the Agreement, have
been provided to the [Depositor] [Master Servicer]. Any material instances of noncompliance
described in such reports have been disclosed to the [Depositor] [Master Servicer]. Any
material instance of noncompliance with the Servicing Criteria has been disclosed in such
reports.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

B-2

 

COUNTRYWIDE –RWT TO SEQUOIA

ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

For

Mortgage Loan Purchase and Servicing Agreement

     THIS ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT, dated as of August 30, 2006 (the
“Assignment”), is entered into among RWT Holdings, Inc. (the “Assignor”), Sequoia Residential
Funding, Inc. (the “Assignee”), Countrywide Home Loans, Inc., as the seller (the “Seller”) and
Countrywide Home Loans Servicing L.P., as the servicer (the “Servicer”).

RECITALS

     WHEREAS, the Assignor and the Seller have entered into a certain Mortgage Loan Purchase and
Servicing Agreement, dated as of April 1, 1998 (the “Mortgage Loan Purchase and Servicing
Agreement”), as amended by the Amendment Number One to such agreement dated February 27, 2004 (the
“Amendment Number One”) and the Amendment Reg AB dated as of August 1, 2006 (the “Amendment Reg
AB,” and together with the Mortgage Loan Purchase and Servicing Agreement and the Amendment Number
One, the “Purchase and Servicing Agreement”) and pursuant to the Purchase Confirmation(s) and Trade
Confirmation(s) issued under the Purchase and Servicing Agreement and listed in Appendix A
hereto (the “Purchase Confirmation(s)” and “Trade Confirmation(s),” respectively and together with
the Purchase and Servicing Agreement, the “Agreements”) Assignor acquired from the Seller certain
Mortgage Loans (the “Specified Mortgage Loans”) which are listed on the mortgage loan schedule
attached as Exhibit I hereto (the “Specified Mortgage Loan Schedule”); and

     WHEREAS, the Seller and the Servicer entered into an Assignment Agreement dated January 1,
2001, whereby Seller assigned to Servicer its rights and obligations as servicer under the
Agreements, and Servicer has agreed to service the Specified Mortgage Loans according to the
provisions of the Agreements; and

     WHEREAS, the Assignor has agreed to sell, assign and transfer to Assignee all of its right,
title and interest in the Specified Mortgage Loans and its rights under the Agreements with respect
to the Specified Mortgage Loans, and the Servicer agreed to service such Specified Mortgage Loans;
and

     WHEREAS, the parties hereto have agreed that the Specified Mortgage Loans shall be subject to
the terms of this Assignment.

     NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties
agree as follows:

 3 

 

     1. Assignment and Assumption.

          (a) Effective on and as of the date hereof, the Assignor hereby sells, assigns and transfers
to the Assignee all of its right, title and interest in the Specified Mortgage Loans and all of its
rights and obligations provided under the Agreements to the extent relating to the Specified
Mortgage Loans, the Assignee hereby accepts such assignment from the Assignor, and the Seller and
the Servicer hereby acknowledge such assignment and assumption.

          (b) Effective on and as of the date hereof, the Assignor represents and warrants to the
Assignee that the Assignor has not taken any action that would serve to impair or encumber the
Assignee’s interest in the Specified Mortgage Loans since the date of the Assignor’s acquisition of
the Specified Mortgage Loans.

     Notwithstanding anything to the contrary contained herein, the Assignor is not assigning to
the Assignee any of the servicing rights relating to the Specified Mortgage Loans, it being
understood that the Servicer is the owner of such servicing rights and is the sole and exclusive
beneficiary with respect to all rights, benefits, and privileges thereto. Except as is otherwise
expressly provided herein, the Seller and Servicer make no representations, warranties or covenants
to the Assignee.

     2. Recognition of the Assignee.

     From and after the date hereof, the Seller and the Servicer shall recognize the Assignee as
the holder of the rights and benefits of the Purchaser with respect to the Specified Mortgage Loans
and the Servicer will service the Specified Mortgage Loans for the Assignee as if the Assignee and
the Servicer had entered into a separate servicing agreement for the servicing of the Specified
Mortgage Loans in the form of the Agreements with the Assignee as the Purchaser thereunder, the
terms of which Agreements are incorporated herein by reference. It is the intention of the parties
hereto that this Assignment will be a separate and distinct agreement, and the entire agreement,
between the parties hereto to the extent of the Specified Mortgage Loans and shall be binding upon
and for the benefit of the respective successors and assigns of the parties hereto.

     3. Assignee Representations and Warranties. The Assignee represents, warrants and
covenants to the Assignor, the Seller and the Servicer that, as of the date hereof:

          (a) The Assignee is duly organized, validly existing and in good standing under the laws of
the jurisdiction of its incorporation and is qualified to transact business in and is in good
standing under the laws of each state where the mortgaged property of a Specified Mortgage Loan is
located or is otherwise exempt under applicable law from such qualification or is otherwise not
required under applicable law to effect such qualification and no demand for such qualification has
been made upon the Assignee by any state having jurisdiction and in any event the Assignee is or
will be in compliance with the laws of any such state to the extent necessary to insure the
enforceability of each mortgage note securing a Specified Mortgage Loan and the assignment of the
Specified Mortgage Loans as contemplated by this Assignment.

          (b) The Assignee has the full power and authority to perform, and to enter into and
consummate, all transactions contemplated by this Assignment. The Assignee has the full power and
authority to hold and purchase each Specified Mortgage Loan.

 4 

 

          (c) Neither the acquisition of the Specified Mortgage Loans by the Assignee, the consummation
of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Assignment, will conflict with or result in a breach of any of the terms,
conditions or provisions of the Assignee’s certificate of incorporation or bylaws or result in a
material breach of any legal restriction or any agreement or instrument to which the Assignee is
now a party or by which it is bound, or constitute a material default or result in an acceleration
under any of the foregoing, or result in the violation of any law, rule, regulation, order,
judgment or decree to which the Assignee or its property is subject.

          (d) The Assignee is an approved seller for Fannie Mae or Freddie Mac, in good standing with
each such agency, and is a mortgagee approved by the Secretary of HUD pursuant to sections 203 and
211 of the National Housing Act. No event has occurred, including but not limited to, a change in
insurance coverage, which would make the Assignee unable to comply with Fannie Mae, Freddie Mac or
HUD-eligibility requirements or which would require notification to Fannie Mae, Freddie Mac, or
HUD.

          (e) The Assignee does not believe, nor does it have any reason or cause to believe, that it
cannot perform each and every covenant contained in this Assignment and the Agreements. Assignee
is solvent and the acquisition of the Specified Mortgage Loans will not cause Assignee to become
insolvent.

          (f) There is no action, suit, proceeding, investigation or litigation pending or, to the best
of the Assignee’s knowledge, threatened, which either in any one instance or in the aggregate, if
determined adversely to the Assignee, would adversely affect the acquisition of the Specified
Mortgage Loans, or the Assignee’s ability to perform its obligations under this Assignment or the
Agreements.

          (g) No consent, approval, authorization or order of any court or governmental agency or body
is required for the execution, delivery and performance by the Assignee of or compliance by the
Assignee with this Assignment and the Agreements or the terms of the Specified Mortgage Loans, the
acquisition of the Specified Mortgage Loans or the consummation of the transactions contemplated by
this Assignment or the Agreements, or if required, such consent, approval, authorization or order
has been obtained prior to the date hereof.

          (h) The consummation of the transactions contemplated by this Assignment and the Agreements
are in the ordinary course of business of the Assignee, and the acquisition of the related mortgage
notes, the mortgages by the Assignee pursuant to this Assignment are not subject to the bulk
transfer or any similar statutory provisions in effect and applicable to this transaction.

          (i) The Assignee represents and warrants that it is a sophisticated investor able to evaluate
the risks and merits of the transactions contemplated hereby, and that it has not relied in
connection therewith upon any statements or representations of the Seller or the Assignor other
than those contained in the Agreements or this Assignment.

     4. Other Representations and Warranties.

          (a) Each of the parties hereto represents and warrants that it is duly and legally authorized
to enter into this Assignment.

 5 

 

          (b) Each of the parties hereto represents and warrants that this Assignment has been duly
authorized, executed and delivered by it and (assuming due authorization, execution and delivery
thereof by each of the other parties hereto) constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

     5. Continuing Effect.

     Except as contemplated hereby, the Agreements shall remain in full force and effect in
accordance with their terms. This Assignment constitutes a Reconstitution Agreement as
contemplated in Section 8.15 of the Mortgage Loan Purchase and Servicing Agreement and the
Reconstitution Date shall be the date hereof with respect to the Specified Mortgage Loans listed on
Exhibit I on the date hereof.

     6. Governing Law.

     This Assignment and the rights and obligations hereunder shall be governed by and construed in
accordance with the internal laws of the State of New York.

     7. Notices.

     Any notices or other communications permitted or required under the Agreements to be made to
the Assignor and Assignee shall be made in accordance with the terms of the Agreements and shall be
sent to the Assignor and Assignee as follows:

RWT Holdings, Inc.

One Belvedere Place, Suite 310

Mill Valley, CA 94941

Sequoia Residential Funding, Inc.

One Belvedere Place, Suite 330

Mill Valley, CA 94941

or to such other address as may hereafter be furnished by the Assignor or Assignee to the other
parties in accordance with the provisions of the Agreements.

     8. Counterparts.

     This Assignment may be executed in counterparts, each of which when so executed shall be
deemed to be an original and all of which when taken together shall constitute one and the same
instrument.

     9. Definitions.

     Any capitalized term used but not defined in this Assignment has the same meaning as in the
Agreements.

 6 

 

     10. Indemnification.

     Notwithstanding anything to the contrary, the Assignor shall indemnify the Seller and the
Servicer and hold them harmless against any and all claims, losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments, and any other costs,
fees and expenses that the Seller and Servicer may sustain in any way related to (a) actions or
inactions of the Seller or the Servicer which were taken or omitted upon the instruction or
direction of the Assignor and/or Assignee, or (b) the failure of the Assignor or Assignee to
perform its obligations under this Assignment and the Agreement.

[remainder of page intentionally left blank]

 7 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Assignment the day and year first
above written.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	ASSIGNOR:	 	 
	 
	 	 	 	 	 	 
	 	 	RWT HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE:	 	 
	 
	 	 	 	 	 	 
	 	 	SEQUOIA RESIDENTIAL FUNDING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 
	 	 	COUNTRYWIDE HOME LOANS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SERVICER:	 	 
	 
	 	 	 	 	 	 
	 	 	COUNTRYWIDE HOME LOANS	 	 
	 	 	SERVICING, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 8 

 

EXHIBIT I

 

 

APPENDIX A

	 	 	 
	Purchase Confirmation(s) Dates	 	Trade Confirmation(s) Dates
	XX	 	 

 

 

COUNTRYWIDE – SEQUOIA TO TRUSTEE: RWT

ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

For

Mortgage Loan Purchase and Servicing Agreement

     THIS ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT, dated as of August 30, 2006 (the
“Assignment”), is entered into among Sequoia Residential Funding, Inc. (the “Assignor”),
Countrywide Home Loans, Inc., as the seller (the “Seller”), Countrywide Home Loans Servicing L.P.,
as the servicer (“Servicer”), and HSBC Bank USA, National Association (“HSBC Bank”) as Trustee
under a Pooling and Servicing Agreement dated as of July 1, 2006 (the “Pooling and Servicing
Agreement”), among the Assignor, as Depositor, HSBC Bank (in such Trustee capacity, the “Assignee”)
and Wells Fargo Bank, N. A., as Master Servicer (the “Master Servicer”) and Trust Administrator.

RECITALS

     WHEREAS, RWT Holdings, Inc. (“RWT”) and the Seller have entered into a certain Mortgage Loan
Purchase and Servicing Agreement, dated as of April 1, 1998 (the “Mortgage Loan Purchase and
Servicing Agreement”), as amended by the Amendment Number One to such agreement dated February 27,
2004 (the “Amendment Number One”) and the Amendment Reg AB dated as of August 1, 2006 (the
“Amendment Reg AB,” and together with the Mortgage Loan Purchase and Servicing Agreement and the
Amendment Number One, the “Purchase and Servicing Agreement”) and pursuant to the Purchase
Confirmation(s) and Trade Confirmation(s) issued under the Purchase and Servicing Agreement and
listed in Appendix A hereto (the “Purchase Confirmation(s)” and “Trade Confirmation(s),”
respectively and together with the Purchase and Servicing Agreement, the “Agreements”) RWT acquired
from the Seller certain Mortgage Loans (the “Specified Mortgage Loans”) which are listed on the
mortgage loan schedule attached as Exhibit I hereto (the “Specified Mortgage Loan
Schedule”); and

     WHEREAS, the Seller and the Servicer entered into an Assignment Agreement dated January 1,
2001, whereby Seller assigned to Servicer its rights and obligations as servicer under the
Agreements, and Servicer has agreed to service the Specified Mortgage Loans according to the
provisions of the Agreements; and

     WHEREAS, RWT has previously sold, assigned and transferred all of its right, title and
interest in certain of the Mortgage Loans and certain rights under the Agreements with respect to
the Specified Mortgage Loans to Assignor, and the Servicer has agreed to service such Specified
Mortgage Loans; and

     WHEREAS, the parties hereto have agreed that the Specified Mortgage Loans shall be subject to
the terms of this Assignment.

2

 

     NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties
agree as follows:

     1. Assignment and Assumption.

          (a) Effective on and as of the date hereof, the Assignor hereby pledges, assigns and transfers
to the Assignee all of its right, title and interest in the Specified Mortgage Loans and all of its
rights (but none of the Purchaser’s, as defined in the Purchase and Servicing Agreement,
obligations) provided under the Agreements to the extent relating to the Specified Mortgage Loans,
the Assignee hereby accepts such assignment from the Assignor, and the Seller and the Servicer
hereby acknowledge such assignment and assumption.

          (b) Effective on and as of the date hereof, the Assignor represents and warrants to the
Assignee that the Assignor has not taken any action that would serve to impair or encumber the
Assignee’s interest in the Specified Mortgage Loans since the date of the Assignor’s acquisition of
the Specified Mortgage Loans.

     Notwithstanding anything to the contrary contained herein, the Assignor is not assigning to
the Assignee any of the servicing rights relating to the Specified Mortgage Loans, it being
understood that the Servicer is the owner of such servicing rights and is the sole and exclusive
beneficiary with respect to all rights, benefits, and privileges thereto. Except as is otherwise
expressly provided herein, the Seller and Servicer make no representations, warranties or covenants
to the Assignee.

     2. Recognition of the Assignee.

     From and after the date hereof, subject to Section 3 below, the Seller and the Servicer shall
recognize the Assignee as the holder of the rights and benefits of the Purchaser, as defined in the
Purchase and Servicing Agreement, with respect to the Specified Mortgage Loans and the Servicer
will service the Specified Mortgage Loans for the Assignee as if the Assignee and the Servicer had
entered into a separate servicing agreement for the servicing of the Specified Mortgage Loans in
the form of the Agreements (as amended hereby) with the Assignee as the Purchaser thereunder, the
terms of which Agreements are incorporated herein by reference and amended hereby. It is the
intention of the parties hereto that this Assignment will be a separate and distinct agreement, and
the entire agreement, between the parties hereto to the extent of the Specified Mortgage Loans and
shall be binding upon and for the benefit of the respective successors and assigns of the parties
hereto.

     3. Assignor’s Continuing Rights and Responsibilities.

     Notwithstanding Sections 1 and 2 above, the parties hereto agree that the Assignor rather than
the Assignee shall have the ongoing rights to take action and the responsibilities of the
Purchaser, as defined in the Purchase and Servicing Agreement, under the following sections of the
Agreements:

3

 

     Purchase and Servicing Agreement:

	 	 	 
	Section	 	Matter
	3.03(c)

	 	(a) Repurchase.
	 
	 	 
	4.01, 2nd ¶

	 	(b) Countrywide to Act as Servicer.
	 
	 	 
	4.03

	 	(c) Realization Upon Defaulted Mortgage
Loans.
	 
	 	 
	4.13(b)

	 	(d) Title, Management and Disposition of REO
Property.
	 
	 	 
	5.06

	 	(e) Purchaser’s Access to Countrywide’s Records.
	 
	 	 
	6.01

	 	(f) Additional Indemnification by Countrywide.
	 
	 	 
	6.02

	 	(g) Third Party Claims.
	 
	 	 
	6.05

	 	(h) No Transfer of Servicing.

     In addition, the Servicer agrees to furnish to the Assignor as well as the Assignee copies of
reports, notices, statements and other communications required to be delivered by the Servicer
pursuant to any of the sections of the Agreements referred to above and under the following
sections, at the times therein specified; provided however that the Assignor pays the Servicer for
any costs and expenses related to such reports, notices, statements and other communications and
executes and delivers a confidentiality agreement in the form acceptable to the Seller, the
Servicer, and the Assignee:

          Purchase and Servicing Agreement:

	 	 	 
	Section	 	 
	5.02

	 	(b) Periodic Reports to Purchaser.
	 
	 	 
	2(d) of the
Amendment Reg AB

	 	(c) Servicer Compliance Statement.
	 
	 	 
	2(e) of the
Amendment Reg AB

	 	(d) Report on Assessment of Compliance and
Attestation.

     4. Amendment to the Agreements.

4

 

     The Agreements are hereby amended as set forth in Appendix B hereto with respect to
the Specified Mortgage Loans.

     5. Representations and Warranties.

          (a) The Assignee represents and warrants that it is a sophisticated investor able to evaluate
the risks and merits of the transactions contemplated hereby, and that it has not relied in
connection therewith upon any statements or representations of the Seller or the Assignor other
than those contained in the Agreements or this Assignment.

          (b) Each of the parties hereto represents and warrants that it is duly and legally authorized
to enter into this Assignment.

          (c) Each of the parties hereto represents and warrants that this Assignment has been duly
authorized, executed and delivered by it and (assuming due authorization, execution and delivery
thereof by each of the other parties hereto) constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

     6. Continuing Effect.

     Except as contemplated hereby, the Agreements shall remain in full force and effect in
accordance with their terms. This Assignment constitutes a Reconstitution Agreement as
contemplated in Section 8.15 of the Mortgage Loan Purchase and Servicing Agreement and the
Reconstitution Date shall be the date hereof with respect to the Specified Mortgage Loans listed on
Exhibit I on the date hereof.

     7. Governing Law.

     This Assignment and the rights and obligations hereunder shall be governed by and construed in
accordance with the internal laws of the State of New York.

     8. Notices.

     Any notices or other communications permitted or required under the Agreements to be made to
the Assignor and Assignee shall be made in accordance with the terms of the Agreements and shall be
sent to the Assignor and Assignee as follows:

Sequoia Residential Funding, Inc.

One Belvedere Place, Suite 330

Mill Valley, CA 94941

HSBC Bank USA, National Association

452 Fifth Avenue

New York, NY 10018

or to such other address as may hereafter be furnished by the Assignor or Assignee to the other
parties in accordance with the provisions of the Agreements.

5

 

     9. Counterparts.

     This Assignment may be executed in counterparts, each of which when so executed shall be
deemed to be an original and all of which when taken together shall constitute one and the same
instrument.

     10. Definitions.

     Any capitalized term used but not defined in this Assignment has the same meaning as in the
Agreements.

     11. Master Servicer.

     The Seller and the Servicer hereby acknowledge that the Assignee has appointed Wells Fargo
Bank, N.A. to act as Master Servicer under the Pooling and Servicing Agreement and hereby agree to
treat all inquiries, instructions, authorizations and other communications from the Master Servicer
as if the same had been received from the Assignee. The Master Servicer, acting on behalf of the
Assignee, shall have the rights of the Assignee as the Purchaser as defined in and granted under
the Agreements to enforce the obligations of the Servicer thereunder.

     12. Pooling and Servicing Agreement.

     Each of the parties hereto hereby acknowledges that as of the date hereof the Specified
Mortgage Loans will be securitized under the Pooling and Servicing Agreement which is attached
hereto as Exhibit II.

     13. Waiver.

     The Assignor hereby waives its rights to indemnification under Section 6.01 of the Purchase
and Servicing Agreement for failure of the Seller or Servicer to perform its obligations in
accordance with Section 3 of this Assignment. Notwithstanding the foregoing, the Seller or
Servicer, as applicable, shall continue to indemnify and hold harmless the Assignor and the
Assignee, against any and all claims, losses, damages, penalties, fines, forfeitures, reasonable
and necessary attorneys’ fees and related costs, judgments, and any other costs, fees and expenses
that the Assignor and the Assignee may sustain in any way related to any material misstatement or
omission, gross negligence, bad faith or willful misconduct of the Seller or Servicer, as
applicable, in connection with complying with Section 3 of this Assignment.

     14. Indemnification.

     Notwithstanding anything to the contrary, the Assignor shall indemnify the Seller and the
Servicer and hold them harmless against any and all claims, losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments, and any other costs,
fees and expenses that the Seller and Servicer may sustain in any way related to (a) actions or
inactions of the Seller or the Servicer which were taken or omitted upon the instruction or
direction of the Assignor, Assignee and/or Master Servicer, or (b) the failure of the Assignor or
Assignee to perform its obligations under this Assignment and the Agreement.

6

 

     IN WITNESS WHEREOF, the parties hereto have executed this Assignment the day and year first
above written.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	ASSIGNOR:	 	 
	 
	 	 	 	 	 	 
	 	 	SEQUOIA RESIDENTIAL FUNDING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE:	 	 
	 
	 	 	 	 	 	 
	 	 	HSBC BANK USA, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 
	 	 	COUNTRYWIDE HOME LOANS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SERVICER:	 	 
	 
	 	 	 	 	 	 
	 	 	COUNTRYWIDE HOME LOANS	 	 
	 	 	SERVICING, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

7

 

EXHIBIT I

 

 

EXHIBIT II

 

 

EXHIBIT III

 

 

APPENDIX A

	 	 	 
	Purchase Confirmation(s) Dates	 	Trade Confirmation(s) Dates
	 	 	 

 

 

APPENDIX B

     The Agreements have been and are so amended to include and incorporate the Amendment Reg AB
dated as of August 1, 2006, by and between RWT Holdings, Inc. and Countrywide Home Loans, Inc.,
which is attached hereto as Exhibit III.

     1. The definition of “Servicing Fee Rate” is revised to read as follows:

     “Servicing Fee Rate: With respect to any Mortgage Loan, a rate per annum,
equal to 0.375%.”

     2. Section 3.02 is hereby revised to delete the “and” at the end of Section 3.02(tt), deleting
the period at the end of Section 3.02(uu) and replacing it with a “;” and adding the following
representations and warranties to the end of such section:

     “(vv) No Mortgage Loan which is secured by property located in the State of New Mexico
is a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act, which
became effective January 1, 2004;

     (ww) No Mortgage Loan which is secured by property located in the State of Kentucky is
a “High-Cost Home Loan” as defined in the Kentucky House Bill 287, which became effective
June 24, 2003;

     (xx) Each Mortgage Loan is a “qualified mortgage” within Section 860G(a)(3) of the
Code;

     (yy) No Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a “High Cost Home Mortgage Loan” as defined in the Massachusetts Predatory
Home Loan Practices Act (Mass. Ann. Laws ch. 183C) which became effective November 7, 2004;

     (zz) No Mortgage Loan that is secured by property located in the State of Illinois is a
“High-Risk Home Loan” as defined in the Illinois High Risk Home Loan Act effective January
1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); and none of the Mortgage Loans that are
secured by property located in the State of Illinois are in violation of the provisions of
the Illinois Interest Act (815 Ill. Comp. Stat. 205/1 et. seq.);

     (aaa) No Mortgage Loan that is secured by property located in the State of
Indiana is a “High Cost Home Loan” as defined in Indiana’s Home Loan Practices Act
(I.C. 24-9), which became effective January 1, 2005; and

     (bbb) No Mortgage Loan contains prepayment penalties that extend beyond five
years after the date of origination; and

     (ccc) No Mortgage Loan is a High Cost Loan or Covered Loan, as applicable (as
such terms are defined in Standard & Poor’s LEVELS ® Glossary, which is now Version
5.7 Revised, Appendix E).”

 

 

     3. Section 5.02(a) of the Agreements is hereby deleted in its entirety and replaced
with the following:[Still subject to confirmation by Countrywide]

          “Section 5.02 Periodic Reports to Purchaser

          (a) Monthly Reports. Not later than the fifth (5th)
Business Day following the end of each month, Countrywide shall furnish to
Purchaser a Mortgage Loan accounting report, as of the last Business Day of the
previous month, documenting the Mortgage Loan payment activity on an individual
Mortgage Loan basis. Such data shall be reported in substantially the same form
as, and providing the information described in, Exhibit D hereto; or as otherwise
mutually agreed to by Countrywide and the Master Servicer. In addition,
Countrywide agrees to provide to the Master Servicer any other data with respect to
the Mortgage Loans as may reasonably be required to enable the Master Servicer to
perform its obligations under the Pooling and Servicing Agreement.”

 

 

EXHIBIT D

Standard File Layout — Master Servicing

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Column Name	 	Description	 	Decimal	 	Format Comment	 	Max Size
	SER_INVESTOR_NBR

	 	A value assigned by the Servicer to define a group of loans.
	 	 	 	 	 	Text up to 10 digits
	 	 	20	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	LOAN_NBR

	 	A unique identifier assigned to each loan by the investor.
	 	 	 	 	 	Text up to 10 digits
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERVICER_LOAN_NBR

	 	A unique number assigned to a loan by the Servicer. This
may be different than the LOAN_NBR.
	 	 	 	 	 	Text up to 10 digits
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	BORROWER_NAME

	 	The borrower name as received in the file. It is not
separated by first and last name.
	 	 	 	 	 	Maximum length of 30 (Last, First)
	 	 	30	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_PAY_AMT

	 	Scheduled monthly principal and scheduled interest payment
that a borrower is expected to pay, P&I constant.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NOTE_INT_RATE

	 	The loan interest rate as reported by the Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NET_INT_RATE

	 	The loan gross interest rate less the service fee rate as
reported by the Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_FEE_RATE

	 	The servicer’s fee rate for a loan as reported by the
Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_FEE_AMT

	 	The servicer’s fee amount for a loan as reported by the
Servicer.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NEW_PAY_AMT

	 	The new loan payment amount as reported by the Servicer.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NEW_LOAN_RATE

	 	The new loan rate as reported by the Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARM_INDEX_RATE

	 	The index the Servicer is using to calculate a forecasted
rate.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_BEG_PRIN_BAL

	 	The borrower’s actual principal balance at the beginning of
the processing cycle.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_END_PRIN_BAL

	 	The borrower’s actual principal balance at the end of the
processing cycle.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	BORR_NEXT_PAY_DUE_DATE

	 	The date at the end of processing cycle that the borrower’s
next payment is due to the Servicer, as reported by
Servicer.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_AMT_1

	 	The first curtailment amount to be applied.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_DATE_1

	 	The curtailment date associated with the first curtailment
amount.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CURT_ADJ___AMT_1

	 	The curtailment interest on the first curtailment amount,
if applicable.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_AMT_2

	 	The second curtailment amount to be applied.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_DATE_2

	 	The curtailment date associated with the second curtailment
amount.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CURT_ADJ___AMT_2

	 	The curtailment interest on the second curtailment amount,
if applicable.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_AMT_3

	 	The third curtailment amount to be applied.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_DATE_3

	 	The curtailment date associated with the third curtailment
amount.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CURT_ADJ_AMT_3

	 	The curtailment interest on the third curtailment amount,
if applicable.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PIF_AMT

	 	The loan “paid in full” amount as reported by the Servicer.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PIF_DATE

	 	The paid in full date as reported by the Servicer.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTION_CODE

	 	The standard FNMA numeric code used to indicate the
default/delinquent status of a particular loan.
	 	 	 	 	 	Action Code Key: 15=Bankruptcy,

30=Foreclosure, , 60=PIF,

63=Substitution,

65=Repurchase,70=REO
	 	2

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	INT_ADJ_AMT

	 	The amount of the interest adjustment as reported by the
Servicer.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Column Name	 	Description	 	Decimal	 	Format Comment	 	Max Size
	SOLDIER_SAILOR_ADJ_AMT

	 	The Soldier and Sailor Adjustment amount, if applicable.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NON_ADV_LOAN_AMT

	 	The Non Recoverable Loan Amount, if applicable.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	LOAN_LOSS_AMT

	 	The amount the Servicer is passing as a loss, if applicable.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_BEG_PRIN_BAL

	 	The scheduled outstanding principal amount due at the
beginning of the cycle date to be passed through to
investors.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_END_PRIN_BAL

	 	The scheduled principal balance due to investors at the end
of a processing cycle.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_PRIN_AMT

	 	The scheduled principal amount as reported by the Servicer
for the current cycle — only applicable for
Scheduled/Scheduled Loans.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_NET_INT

	 	The scheduled gross interest amount less the service fee
amount for the current cycle as reported by the Servicer —
only applicable for Scheduled/Scheduled Loans.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_PRIN_AMT

	 	The actual principal amount collected by the Servicer for
the current reporting cycle — only applicable for
Actual/Actual Loans.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_NET_INT

	 	The actual gross interest amount less the service fee
amount for the current reporting cycle as reported by the
Servicer — only applicable for Actual/Actual Loans.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PREPAY_PENALTY___AMT

	 	The penalty amount received when a borrower prepays on his
loan as reported by the Servicer.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PREPAY_PENALTY___WAIVED

	 	The prepayment penalty amount for the loan waived by the
servicer.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 

 

 

REPORTING DATA FOR DEFAULTED LOANS

Data must be submitted to Wells Fargo Bank in an Excel spreadsheet format with fixed field names
and data type. The Excel spreadsheet should be used as a template consistently every month when
submitting data.

Table: Delinquency

	 	 	 	 	 	 	 
	Name	 	Type	 	Size
	 
	Servicer Loan #

	 	Number
	 	 	8	 
	 

	 	(Double)	 	 	 	 
	Investor Loan #

	 	Number
	 	 	8	 
	 

	 	(Double)	 	 	 	 
	Borrower Name

	 	Text
	 	 	20	 
	Address

	 	Text
	 	 	30	 
	State

	 	Text
	 	 	2	 
	Due Date

	 	Date/Time
	 	 	8	 
	Action Code

	 	Text
	 	 	2	 
	FC Received

	 	Date/Time
	 	 	8	 
	File Referred to Atty

	 	Date/Time
	 	 	8	 
	NOD

	 	Date/Time
	 	 	8	 
	Complaint Filed

	 	Date/Time
	 	 	8	 
	Sale Published

	 	Date/Time
	 	 	8	 
	Target Sale Date

	 	Date/Time
	 	 	8	 
	Actual Sale Date

	 	Date/Time
	 	 	8	 
	Loss Mit Approval Date

	 	Date/Time
	 	 	8	 
	Loss Mit Type

	 	Text
	 	 	5	 
	Loss Mit Estimated Completion

	 	Date/Time
	 	 	8	 
	Date 

Loss Mit Actual Completion Date

	 	Date/Time
	 	 	8	 
	Loss Mit Broken Plan Date

	 	Date/Time
	 	 	8	 
	BK Chapter

	 	Text
	 	 	6	 
	BK Filed Date

	 	Date/Time
	 	 	8	 
	Post Petition Due

	 	Date/Time
	 	 	8	 
	Motion for Relief

	 	Date/Time
	 	 	8	 
	Lift of Stay

	 	Date/Time
	 	 	8	 
	RFD

	 	Text
	 	 	10	 
	Occupant Code

	 	Text
	 	 	10	 
	Eviction Start Date

	 	Date/Time
	 	 	8	 
	Eviction Completed Date

	 	Date/Time
	 	 	8	 
	List Price

	 	Currency
	 	 	8	 
	List Date

	 	Date/Time
	 	 	8	 

 

 

	 	 	 	 	 	 	 
	Name	 	Type	 	Size
	 
	Accepted Offer Price

	 	Currency
	 	 	8	 
	Accepted Offer Date

	 	Date/Time
	 	 	8	 
	Estimated REO Closing Date

	 	Date/Time
	 	 	8	 
	Actual REO Sale Date

	 	Date/Time
	 	 	8	 

			
	•	 	Items in bold are MANDATORY FIELDS. We must receive information in those fields every
month in order for your file to be accepted.

The Action Code Field should show the applicable numeric code to indicate that a special action is
being taken. The Action Codes are the following:

12-Relief Provisions

15-Bankruptcy/Litigation

20-Referred for Deed-in-Lieu

30-Referred fore Foreclosure

60-Payoff

65-Repurchase

70-REO-Held for Sale

71-Third Party Sale/Condemnation

72-REO-Pending Conveyance-Pool Insurance claim filed

Wells Fargo Bank will accept alternative Action Codes to those above, provided that the Codes are
consistent with industry standards. If Action Codes other than those above are used, the Servicer
must supply Wells Fargo Bank with a description of each of the Action Codes prior to sending the
file.

Description of Action Codes: 

Action Code 12 - To report a Mortgage Loan for which the Borrower has been granted relief
for curing a delinquency. The Action Date is the date the relief is expected to end. For military
indulgence, it will be three months after the Borrower’s discharge from military service.

Action Code 15 - To report the Borrower’s filing for bankruptcy or instituting some other
type of litigation that will prevent or delay liquidation of the Mortgage Loan. The Action Date
will be either the date that any repayment plan (or forbearance) instituted by the bankruptcy court
will expire or an additional date by which the litigation should be resolved.

Action Code 20 - To report that the Borrower has agreed to a deed-in-lieu or an
assignment of the property. The Action Date is the date the Servicer decided to pursue a
deed-in-lieu or the assignment.

Action Code 30 - To report that the decision has been made to foreclose the Mortgage
Loan. The Action Date is the date the Servicer referred the case to the foreclosure attorney.

 

 

Action Code 60 - To report that a Mortgage Loan has been paid in full either at, or prior
to, maturity. The Action Date is the date the pay-off funds were remitted to the Master Servicer.

Action Code 65 - To report that the Servicer is repurchasing the Mortgage Loan. The
Action Date is the date the repurchase proceeds were remitted to the Master Servicer.

Action Code 70 - To report that a Mortgage Loan has been foreclosed or a deed-in-lieu of
foreclosure has been accepted, and the Servicer, on behalf of the owner of the Mortgage Loan, has
acquired the property and may dispose of it. The Action Date is the date of the foreclosure sale
or, for deeds-in-lieu, the date the deed is recorded on behalf of the owner of the Mortgage Loan.

Action Code 71 - To report that a Mortgage Loan has been foreclosed and a third party
acquired the property, or a total condemnation of the property has occurred. The Action Date is
the date of the foreclosure sale or the date the condemnation award was received.

Action Code 72 - To report that a Mortgage Loan has been foreclosed, or a deed-in-lieu
has been accepted, and the property may be conveyed to the mortgage insurer and the pool insurance
claim has been filed. The Action Date is the date of the foreclosure sale, or, for deeds-in-lieu,
the date of the deed for conventional mortgages.

The Loss Mit Type field should show the approved Loss Mitigation arrangement. The following are
acceptable:

ASUM-Approved Assumption

BAP-Borrower Assistance Program

CO-Charge Off

DIL-Deed-in-Lieu

FFA-Formal Forbearance Agreement

MOD-Loan Modification

PRE-Pre-Sale

SS-Short Sale

MISC-Anything else approved by the PMI or Pool Insurer

Wells Fargo Bank will accept alternative Loss Mitigation Types to those above, provided that they
are consistent with industry standards. If Loss Mitigation Types other than those above are used,
the Servicer must supply Wells Fargo Bank with a description of each of the Loss Mitigation Types
prior to sending the file.

The Occupant Code field should show the current status of the property. The acceptable codes are:

 

 

Mortgagor

Tenant

Unknown

Vacant

 

 

REALIZED LOSS CALCULATION INFORMATION WELLS

FARGO BANK, N.A. Form 332

Calculation of Realized Loss 

Purpose 

To provide the Servicer with a form for the calculation of any Realized Loss (or gain) as a
result of a Mortgage Loan having been foreclosed and Liquidated.

Distribution 

The Servicer will prepare the form in duplicate and send the original together with evidence
of conveyance of title and appropriate supporting documentation to the Master Servicer with the
Monthly Accounting Reports which supports the Mortgage Loan’s removal from the Mortgage Loan
Activity Report. The Servicer will retain the duplicate for its own records.

Due Date 

With respect to any liquidated Mortgage Loan, the form will be submitted to the Master
Servicer no later than the date on which statements are due to the Master Servicer under Section
4.02 of this Agreement (the “Statement Date”) in the month following receipt of final liquidation
proceeds and supporting documentation relating to such liquidated Mortgage Loan; provided, that if
such Statement Date is not at least 30 days after receipt of final liquidation proceeds and
supporting documentation relating to such liquidated Mortgage Loan, then the form will be submitted
on the first Statement Date occurring after the 30 th  day following receipt of
final liquidation proceeds and supporting documentation.

Preparation Instructions 

The numbers on the form correspond with the numbers listed below.

1. The actual Unpaid Principal Balance of the Mortgage Loan.

2. The Total Interest Due less the aggregate amount of servicing fee that would have been earned if
all delinquent payments had been made as agreed.

	3-7.	 	Complete as necessary. All line entries must be supported by copies of appropriate
statements,
vouchers, receipts, canceled checks, etc., to document the expense. Entries not properly
documented will not be reimbursed to the Servicer.
	 
	8.	 	Accrued Servicing Fees based upon the Scheduled Principal Balance of the Mortgage Loan as
calculated on a monthly basis.
	 
	10.	 	The total of lines 1 through 9.

Credits 

 

 

	11-17.	 	 Complete as necessary. All line entries must be supported by copies of the appropriate
claims forms, statements, payment checks, etc. to document the credit. If the Mortgage Loan
is subject to a Bankruptcy Deficiency, the difference between the Unpaid Principal Balance of
the Note prior to the Bankruptcy Deficiency and the Unpaid Principal Balance as reduced by the
Bankruptcy Deficiency should be input on line 16.

	18.	 	The total of lines 11 through 17.

Total Realized Loss (or Amount of Any Gain) 

	19.	 	The total derived from subtracting line 18 from 10. If the amount represents a realized
gain, show the amount in parenthesis ( ).

 

 

WELLS FARGO BANK, N.A.

CALCULATION OF REALIZED LOSS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A. Trust:	 	 	 	 	 	 
	 	 	 	 	
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Prepared by:
	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 	 	 

	 	 
	 

	 	Phone:	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	Servicer Loan No.
	 	Servicer Name
	 	Servicer Address

WELLS FARGO BANK, N.A.

Loan No.                                        

Borrower’s Name:                                                            

Property

Address:                                                            

	 	 	 	 	 
	Liquidation and Acquisition Expenses:
	 	 	 	 
	Actual Unpaid Principal Balance of Mortgage Loan
	 	$	 	(1)
	 
	 	 	 
	Interest accrued at Net Rate
	 	 	 	(2)
	 
	 	 	 
	Attorney’s Fees
	 	 	 	(3)
	 
	 	 	 
	Taxes
	 	 	 	(4)
	 
	 	 	 
	Property Maintenance
	 	 	 	(5)
	 
	 	 	 
	MI/Hazard Insurance Premiums
	 	 	 	(6)
	 
	 	 	 
	Hazard Loss Expenses
	 	 	 	(7)
	 
	 	 	 
	Accrued Servicing Fees
	 	 	 	(8)
	 
	 	 	 
	Other (itemize)
	 	 	 	(9)
	 
	 	 	 
	 
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Total Expenses
	 	$	 	(10)
	 
	 	 	 
	Credits:
	 	 	 	 
	Escrow Balance
	 	$	 	(11)
	 
	 	 	 
	HIP Refund
	 	 	 	(12)
	 
	 	 	 
	Rental Receipts
	 	 	 	(13)
	 
	 	 	 
	Hazard Loss Proceeds
	 	 	 	(14)
	 
	 	 	 
	Primary Mortgage Insurance Proceeds
	 	 	 	(15)
	 
	 	 	 
	Proceeds from Sale of Acquired Property
	 	 	 	(16)
	 
	 	 	 
	Other (itemize)
	 	 	 	(17)
	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 
	Total Credits
	 	$	 	(18)
	 
	 	 	 
	Total Realized Loss (or Amount of Gain)
	 	$

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